N-CSR 1 file001.txt NUVEEN INSURED TAX-FREE ADVANTAGE MUNICIPAL 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 811-21213 --------------------- Nuveen Insured Tax-Free Advantage Municipal Fund ------------------------------------------------------------------------------ (Exact name of registrant as specified in charter) Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Jessica R. Droeger Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: (312) 917-7700 ------------------- Date of fiscal year end: October 31 ------------------ Date of reporting period: October 31, 2005 ------------------ Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. ANNUAL REPORT October 31, 2005 Nuveen Investments Municipal Exchange-Traded Closed-End Funds NUVEEN INSURED QUALITY MUNICIPAL FUND, INC. NQI NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC. NIO NUVEEN PREMIER INSURED MUNICIPAL INCOME FUND, INC. NIF NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND 2 NPX NUVEEN INSURED DIVIDEND ADVANTAGE MUNICIPAL FUND NVG NUVEEN INSURED TAX-FREE ADVANTAGE MUNICIPAL FUND NEA Photo of: Man, woman and child at the beach. Photo of: A child. DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Logo: NUVEEN Investments Photo of: Woman Photo of: Man and child Photo of: Woman NOW YOU CAN RECEIVE YOUR NUVEEN FUND REPORTS FASTER. NO MORE WAITING. SIGN UP TODAY TO RECEIVE NUVEEN FUND INFORMATION BY E-MAIL. It only takes a minute to sign up for E-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Investments Fund information is ready -- no more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report, and save it on your computer if you wish. ---------------------------- DELIVERY DIRECT TO YOUR E-MAIL INBOX ---------------------------- IT'S FAST, EASY & FREE: WWW.INVESTORDELIVERY.COM if you get your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR WWW.NUVEEN.COM/ACCOUNTACCESS if you get your Nuveen Fund dividends and statements directly from Nuveen. (Be sure to have the address sheet that accompanied this report handy. You'll need it to complete the enrollment process.) Logo: NUVEEN Investments Photo: Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board Chairman's LETTER TO SHAREHOLDERS Once again, I am pleased to report that over the 12-month period covered by this report your Fund continued to provide you with attractive monthly tax-free income. For more details about the management strategy and performance of your Fund, please see the Portfolio Manager's Comments and Performance Overview sections of this report. Given recent reports of a strengthening economy, some market commentators are speculating about whether longer-term interest rates will soon begin to rise substantially, mirroring the rise that has taken place in shorter-term rates. If longer-term rates do begin to rise significantly, some have suggested that this would be a signal to begin selling your holdings of fixed-income investments. "IN FACT, A WELL-DIVERSIFIED PORTFOLIO MAY ACTUALLY HELP TO REDUCE YOUR OVERALL INVESTMENT RISK OVER THE LONG TERM." Nobody knows what the market will do in the future or what investments will turn out to be tomorrow's best performers. But from our experience, we do know that a well-balanced portfolio, structured and carefully monitored with the help of a trusted investment professional, can be an important component in helping you achieve your long-term financial goals. In fact, a well-diversified portfolio may actually help to reduce your overall investment risk over the long term. That is one reason why we believe that a municipal bond investment like your Fund can be an important building block in a comprehensive investment program designed to perform well in a variety of market conditions. As an added convenience for you, I urge you to consider receiving future Fund reports and other Fund information by e-mail and the Internet. Not only will you be able to receive the information faster, but this also may help lower your Fund's expenses. Sign up is quick and easy - see the inside front cover of this report for instructions. Earlier in 2005, The St. Paul Travelers Companies, Inc., which owned 79% of Nuveen Investments, Inc. (the parent of your Fund's investment adviser), sold a substantial portion of its stake in Nuveen. More recently, St. Paul sold the balance of its shares to Nuveen Investments or to others. Please be assured that these transactions only affect Nuveen's corporate structure, and they do not have any impact on the investment objectives or management of your Fund. At Nuveen Investments, our mission continues to be to assist you and your financial advisor by offering investment services and products that can help you to secure your financial objectives. We are grateful that you have chosen us as a partner as you pursue your financial goals, and we look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board December 15, 2005 Nuveen Investments National Insured Municipal Exchange-Traded Closed-End Funds NQI, NIO, NIF, NPX, NVG, NEA Portfolio Manager's COMMENTS Portfolio manager Dan Solender discusses the economic and municipal market environments, key investment strategies and the annual performance of these six insured Funds. With 13 years of investment experience, including 9 at Nuveen, Dan has managed these Funds since May 2004. WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE 12-MONTH REPORTING PERIOD ENDED OCTOBER 31, 2005? Between November 1, 2004, and October 31, 2005, the Federal Reserve implemented eight 0.25% increases in the closely-watched fed funds rate. These increases, which were aimed at controlling the pace of inflation, raised this short-term target rate to 3.75% from 1.75%. (On November 1, 2005, and December 13, 2005, the fed funds rate was increased by 0.25% to reach 4.25%.) Over this same 12-month period, shorter-term municipal market rates also rose. Longer-term yields declined throughout much of this period before rising toward the end of the fiscal year. The yield on the benchmark 10-year U.S. Treasury note ended October 2005 at 4.56%, compared with 4.03% one year earlier. Longer-term yields in the municipal market followed a similar pattern, with the yield on the Bond Buyer 25 Revenue Bond Index, a widely followed measure of longer-term municipal market rates, ending the reporting period at 5.21%, an increase of 24 basis points from October 31, 2004. Together, the steady rise in shorter-term rates and the much more modest increase in longer rates over this period produced an overall flattening of the yield curve, which generally led to better relative performance for bonds with longer effective maturities and poorer returns for bonds with shorter maturities or short call dates. The economy continued to improve over the 12-month period. After expanding at an annualized rate of 3.3% in the fourth quarter of 2004, the U.S. gross domestic product (GDP) grew by annualized rates of 3.8% in the first quarter of 2005, 3.3% in the second quarter and 3.8% in the third quarter. The overall employment picture showed some improvement, with national unemployment at 5.0% in October 2005, down from 5.5% in October 2004. However, the 4.3% year-over-year increase in the Consumer Price Index as of October 2005 raised some inflation concerns. Over the 12 months ended October 2005, municipal bond new issue supply nationwide remained strong, as $363.4 billion in new securities came to market. A major factor 4 behind this strong supply was the flattening yield curve, which made advance refundings more economically attractive for many issuers. (Advance refundings, also known as pre-refundings or refinancings, occur when an issuer sells new bonds and uses the proceeds to fund the principal and interest payments of older, previously issued bonds that carry a higher coupon rate. This process usually results in lower total borrowing costs for bond issuers.) Between January and October 2005, pre-refunding volume was nearly 50% higher than during the same period in 2004, as issuers sought to take advantage of the current interest rate environment. WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE 12 MONTHS ENDED OCTOBER 31, 2005? As short-term interest rates rose during this reporting period and the yield curve flattened, we believed that positioning the Funds strategically on the yield curve became increasingly important. As part of this effort, we took proceeds from called, matured, or sold holdings and reinvested them primarily in bonds that mature in 15 to 20 years. Among the bonds we sold were those with shorter durations1, including pre-refunded bonds and bonds priced to short call dates. These securities tended to underperform longer duration bonds in the interest rate environment of the past 12 months. The longer maturities of the bonds we added to the Funds' portfolios enabled us to maintain the Funds' durations within our desired range and generally made positive contributions to their performance during this period. Selling shorter duration bonds and reinvesting further out on the yield curve also helped to improve the Funds' overall call protection. Overall, the increased municipal supply during this period, especially in the insured sector, provided additional opportunities to find the types of bonds we were seeking. While our main focus was on the 15 - 20 year part of the yield curve, we also kept an opportunistic eye on all types of issuance that we believed could add value to the Funds' portfolios, including bonds with slightly longer maturities (20 to 25 years). Another area of emphasis for these Funds was purchasing credits from states like California and New York, where state income taxes are relatively higher. This generally results in greater demand for municipal bonds in these states, providing a measure of support for bond prices and additional liquidity for the Funds' portfolio activity. We also focused on bonds where we believed the underlying credit offered higher quality, finding value in the general obligation, limited tax obligation, and water and sewer sectors. 1 Duration is a measure of a bond's price sensitivity as interest rates change, with longer duration bonds displaying more sensitivity to these changes than bonds with shorter durations. 5 In NVG and NEA, we used forward interest rate swaps, a type of derivative financial instrument, as part of our duration management strategies. As discussed in our last shareholder report, we began using these swaps in late 2004 in an effort to reduce some of the interest rate risk in these two Funds. These hedges were not an attempt to profit from correctly predicting the timing and direction of interest rate movements. Instead, our sole objective was to reduce the durations of these Funds without having a negative impact on their income streams or common share dividends over the short term. We believe the hedging strategy was effective in achieving the intended goal of helping to reduce NVG's net asset value (NAV) volatility, and in June 2005 we removed the hedge from this Fund. The hedge on NEA was reduced, but not eliminated, as of October 31, 2005. During this reporting period, the hedges had a negative impact on the performance of NEA and, to a lesser extent, NVG. This was due to the decline of long-term interest rates over much of the period, which resulted in a decline in the value of the hedges as the value of the Funds' portfolios rose. HOW DID THE FUNDS PERFORM? Individual results for these Funds, as well as for comparative indexes and averages, are presented in the accompanying table. TOTAL RETURNS ON NET ASSET VALUE* For periods ended 10/31/05 1-YEAR 5-YEAR 10-YEAR -------------------------------------------------------------------------------- NQI 3.09% 7.74% 6.39% -------------------------------------------------------------------------------- NIO 2.21% 7.54% 6.36% -------------------------------------------------------------------------------- NIF 2.16% 7.35% 6.17% -------------------------------------------------------------------------------- NPX 2.14% 7.43% 6.52% -------------------------------------------------------------------------------- NVG 2.93% NA NA -------------------------------------------------------------------------------- NEA 4.33% NA NA -------------------------------------------------------------------------------- Lehman Brothers Insured Municipal Bond Index2 2.43% 6.26% 6.01% -------------------------------------------------------------------------------- Lipper Insured Municipal Debt Funds Average3 2.93% 6.64% 5.72% -------------------------------------------------------------------------------- *Annualized Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. For additional information, see the individual Performance Overview for your Fund in this report. 2 The Lehman Brothers Insured Municipal Bond Index is an unleveraged, unmanaged national index comprising a broad range of insured municipal bonds. Results for the Lehman Brothers index do not reflect any expenses. 3 The Lipper Insured Municipal Debt Funds category average is calculated using the returns of all closed-end exchange-traded funds in this category for each period as follows: 1 year, 26 funds; 5 years, 21 funds; and 10 years, 18 funds. Fund and Lipper returns assume reinvestment of dividends. 6 For the 12 months ended October 31, 2005, the total returns on NAV for NQI, NVG and NEA exceeded the return on the Lehman Brothers Insured Municipal Bond Index, while NIO, NIF and NPX trailed this measure. NQI and NEA also outperformed the average return for their Lipper insured peer group, while NVG matched this return and NIO, NIF and NPX underperformed the Lipper peer group average for the period. One of the factors affecting the 12-month performance of these Funds relative to that of the unleveraged Lehman Brothers index was the Funds' use of financial leverage. Leveraging can provide opportunities for enhanced income for common shareholders when short-term interest rates remain below the yields of the bonds purchased for the Funds' portfolios. This continued to be the case during these 12 months. At the same time, leveraging can add volatility to a Fund's NAV and share price, and can act to constrain overall Fund performance during periods when interest rates rise. This was evident during this reporting period. Essentially, the positive impact of leverage on net income during the 12-month period was roughly offset by the negative impact that leverage had on the Fund's NAVs. As noted earlier, the municipal market yield curve flattened over the course of this reporting period, as short-term interest rates rose dramatically and longer-term interest rates rose more modestly. As a result, longer maturity bonds generally performed better than securities with shorter maturities. Heavier exposure to the longer end of the yield curve helped the returns of NQI, NVG and NEA, while the performances of NIO, NIF, and NPX were hurt by their relatively greater exposure to the shorter end of the curve, including bonds with maturities of five years or less and bonds pre-refunded to short call dates (i.e., less than 10 years). One of our main objectives throughout this period was to reduce the Funds' exposures to these shorter bonds and reinvest in bonds in the 15-to 20-year part of the yield curve. Another factor for the relative performance of these Funds when compared with the Lehman Brothers index was their relatively light weightings in zero coupon bonds. These bonds do not make periodic interest payments and typically have very long durations and maturities. Zero coupon bonds in the Lehman Brothers Insured Municipal Bond Index outperformed the general market by 130 basis points over the 12 months ended October 31, 2005. Zero coupon bonds helped the return of NQI relative to the performance of the other Funds. NIF and NPX held very few zero coupon bonds. 7 NEA, which can invest up to 20% of its assets in uninsured investment-grade quality securities, benefited from its allocations of lower-quality credits during this period, as these bonds generally outperformed higher-rated credits. This was largely the result of the interest rate environment during this time, as investor demand for the higher yields typically associated with lower-quality bonds supported the value of these bonds. As of October 31, 2005, NEA held 1% of its portfolio in bonds rated BBB and 4% in bonds in bonds rated A. Among the lower-rated credits making contributions to NEA's total return were several hospital holdings, as the healthcare sector ranked second in terms of performance among the Lehman municipal revenue sectors for the period. NVG, which also can invest in uninsured securities, did not hold any bonds rated below AA as of the end of this period. In addition to yield curve positioning, credit exposure, and specific holdings, another important factor in the Funds' performances during this period was advance refundings. Refinancings rose sharply during this period, and the Funds' performances benefited from the amount of their portfolios that became advance refunded and the timing of these events. Generally, newly refunded bonds receive a higher credit rating, which usually translates to a higher price. While newly pre-refunded bonds tended to enhance the Funds' performances, the Funds' holdings of older, previously pre-refunded bonds tended to underperform the general municipal market during this period, primarily because of the shorter effective maturities of these bonds. This was especially true in NIO and NIF. As the Funds' holdings became advance refunded, we sold selected issues to keep our allocations of pre-refunded credits at desired levels. The four older Funds (NQI, NIO, NIF and NPX) also experienced some calls affecting their holdings of higher-yielding housing bonds, which impacted the Funds' total returns over this period. HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF OCTOBER 31, 2005? As of October 31, 2005, NQI, NIO, NIF and NPX were 100% invested in insured and/or U.S. guaranteed securities. NVG and NEA, which can invest up to 20% of their assets 8 in uninsured investment-grade quality securities, had allocated 94% and 89% of their portfolios, respectively, to insured bonds. As of October 31, 2005, potential call exposure for the period from November 2005 through the end of 2007 ranged from 3% in NEA and NVG to 4% in NIF, 8% in NPX and in NQI and 13% in NIO. The number of actual bond calls in all of these Funds depends largely on future market interest rates. 9 Dividend and Share Price INFORMATION All of the Funds in this report use leverage to enhance opportunities for additional income for common shareholders. The extent of this benefit is tied in part to the short-term rates these Funds pay their MuniPreferred, shareholders. During periods of low short-term rates, leveraged Funds generally pay lower dividends to their MuniPreferred shareholders, which can leave more earnings to support common share dividends. However, when short-term interest rates rise, as they did during this reporting period, the Funds' borrowing costs also rise. While leveraging still provided benefits for common shareholders, the extent of these benefits was reduced. This resulted in two monthly dividend reductions in NVG, three in NQI, NIO, NIF and NPX, and four in NEA over the 12-month period ended October 31, 2005. In addition, due to normal portfolio activity, common shareholders of the following Funds received capital gains and net ordinary income distributions at the end of December 2004 as follows: LONG-TERM CAPITAL GAINS ORDINARY INCOME (PER SHARE) (PER SHARE) -------------------------------------------------------------------------------- NQI $0.0472 $0.0104 -------------------------------------------------------------------------------- NIO $0.0325 -- -------------------------------------------------------------------------------- NIF $0.0469 $0.0384 -------------------------------------------------------------------------------- NVG $0.1099 $0.0100 -------------------------------------------------------------------------------- NEA $0.0097 -- -------------------------------------------------------------------------------- The relatively large distributions from several of these Funds represented an important part of the Funds' total returns for this period. For the most part, these distributions were generated by bond calls or by sales of appreciated securities. This had a slight negative impact on the Funds' earning power per common share and was a minor factor in the per share dividend reductions noted above. All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund's past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund's NAV. Each Fund will, over time, pay all of its net invest- 10 ment income as dividends to shareholders. As of October 31, 2005, all of the Funds in this report except NEA had positive UNII balances for both financial statement and tax purposes. NEA had a negative UNII balance for financial statement purposes and a positive UNII balance for tax purposes. At the end of the reporting period, the Funds' were trading at premiums or discounts to their NAVs as shown in the accompanying chart: 10/31 12-MONTH AVERAGE DISCOUNT PREMIUM/DISCOUNT -------------------------------------------------------------------------------- NQI 0.00% +0.13% -------------------------------------------------------------------------------- NIO -6.08% -3.66% -------------------------------------------------------------------------------- NIF -6.07% -2.76% -------------------------------------------------------------------------------- NVG -6.96% -7.11% -------------------------------------------------------------------------------- NEA -7.90% -4.65% -------------------------------------------------------------------------------- 11 Nuveen Insured Quality Municipal Fund, Inc. NQI Performance OVERVIEW As of October 31, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 88% U.S. Guaranteed 12% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Nov 0.0845 Dec 0.0845 Jan 0.0845 Feb 0.0845 Mar 0.0815 Apr 0.0815 May 0.0815 Jun 0.0775 Jul 0.0775 Aug 0.0775 Sep 0.074 Oct 0.074 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 11/1/04 16.08 16.07 16.1 16.07 15.64 15.27 15.36 15.34 15.47 15.57 15.69 15.78 15.78 15.82 15.66 15.73 15.7 15.73 15.8 15.62 15.6 15.56 15.4 15.48 15.51 15.55 15.67 15.76 15.8 15.68 15.64 15.73 15.59 15.54 15.64 15.7 15.62 15.58 15.54 15.47 15.5 15.51 15.57 15.54 15.62 15.62 15.66 15.64 15.66 15.74 15.72 15.69 15.57 15.63 15.54 15.54 15.6 15.58 15.58 15.64 15.77 15.86 16 15.98 16.1 16.13 16.28 16.34 16.35 16.3 16.34 16.22 16.32 16.29 16.21 16.16 16.13 15.96 16.16 16.36 16.32 16.3 16.23 16.27 16.3 16.32 16.35 16.3 16 15.88 15.74 15.6 15.55 15.38 15.36 15.35 15.22 15.02 14.62 14.76 14.5 14.61 14.64 14.8 14.87 14.8 14.88 14.9 14.94 14.87 14.86 14.86 14.99 15 14.96 15.06 15.19 15.09 15.09 15.1 15.36 15.17 15.33 15.54 15.59 15.59 15.42 15.51 15.5 15.61 15.42 15.4 15.62 15.52 15.64 15.65 15.65 15.63 15.77 15.76 15.77 15.72 15.8 15.75 15.84 15.9 15.96 16.01 16.02 16.1 16.02 15.91 15.99 15.99 15.96 15.76 15.76 15.93 15.94 15.91 15.9 16.01 16.05 16.14 16.22 16.16 16.09 16.08 16.07 16.03 16.1 16.19 16.2 16.21 16.34 16.4 16.42 16.47 16.36 16.17 16.07 16.08 15.94 15.96 15.79 15.8 15.88 15.85 15.91 15.91 15.73 15.75 15.79 15.74 15.62 15.57 15.45 15.57 15.53 15.55 15.57 15.63 15.63 15.64 15.67 15.68 15.7 15.66 15.59 15.6 15.6 15.7 15.83 15.85 15.93 15.9 15.91 15.9 15.89 15.73 15.66 15.68 15.6 15.56 15.58 15.61 15.62 15.55 15.5 15.55 15.38 15.45 15.59 15.58 15.6 15.63 15.6 15.65 15.59 15.54 15.59 15.59 15.39 15.34 15.43 15.19 15.3 15.38 15.42 15.44 15.42 15.24 15.46 15.3 10/31/05 15.31 FUND SNAPSHOT ------------------------------------ Common Share Price $15.31 ------------------------------------ Common Share Net Asset Value $15.31 ------------------------------------ Premium/(Discount) to NAV 0.00% ------------------------------------ Market Yield 5.80% ------------------------------------ Taxable-Equivalent Yield1 8.06% ------------------------------------ Net Assets Applicable to Common Shares ($000) $585,777 ------------------------------------ Average Effective Maturity on Securities (Years) 20.22 ------------------------------------ Leverage-Adjusted Duration 8.29 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 12/19/90) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 2.11% 3.09% ------------------------------------ 5-Year 9.03% 7.74% ------------------------------------ 10-Year 7.00% 6.39% ------------------------------------ STATES (as a % of total investments) ------------------------------------ California 18.2% ------------------------------------ Texas 14.9% ------------------------------------ New York 10.1% ------------------------------------ Illinois 9.7% ------------------------------------ Washington 7.2% ------------------------------------ Florida 5.7% ------------------------------------ Nevada 4.6% ------------------------------------ Hawaii 4.0% ------------------------------------ Kentucky 3.8% ------------------------------------ Ohio 1.8% ------------------------------------ Pennsylvania 1.7% ------------------------------------ Other 18.3% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Transportation 21.5% ------------------------------------ Tax Obligation/Limited 14.6% ------------------------------------ Tax Obligation/General 13.3% ------------------------------------ Healthcare 12.5% ------------------------------------ U.S. Guaranteed 12.4% ------------------------------------ Utilities 8.4% ------------------------------------ Housing/Multifamily 7.0% ------------------------------------ Water and Sewer 6.6% ------------------------------------ Other 3.7% ------------------------------------ 1 Taxable equivalent yield represents the yield that must be earned on a fully taxable investment, in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the taxable equivalent yield is lower. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2004 of $0.0576 per share. 12 Nuveen Insured Municipal Opportunity Fund, Inc. NIO Performance OVERVIEW As of October 31, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 79% U.S. Guaranteed 21% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Nov 0.081 Dec 0.081 Jan 0.081 Feb 0.081 Mar 0.078 Apr 0.078 May 0.078 Jun 0.074 Jul 0.074 Aug 0.074 Sep 0.071 Oct 0.071 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 11/1/04 16.08 16.07 16.1 16.07 15.64 15.27 15.36 15.34 15.47 15.57 15.69 15.78 15.78 15.82 15.66 15.73 15.7 15.73 15.8 15.62 15.6 15.56 15.4 15.48 15.51 15.55 15.67 15.76 15.8 15.68 15.64 15.73 15.59 15.54 15.64 15.7 15.62 15.58 15.54 15.47 15.5 15.51 15.57 15.54 15.62 15.62 15.66 15.64 15.66 15.74 15.72 15.69 15.57 15.63 15.54 15.54 15.6 15.58 15.58 15.64 15.77 15.86 16 15.98 16.1 16.13 16.28 16.34 16.35 16.3 16.34 16.22 16.32 16.29 16.21 16.16 16.13 15.96 16.16 16.36 16.32 16.3 16.23 16.27 16.3 16.32 16.35 16.3 16 15.88 15.74 15.6 15.55 15.38 15.36 15.35 15.22 15.02 14.62 14.76 14.5 14.61 14.64 14.8 14.87 14.8 14.88 14.9 14.94 14.87 14.86 14.86 14.99 15 14.96 15.06 15.19 15.09 15.09 15.1 15.36 15.17 15.33 15.54 15.59 15.59 15.42 15.51 15.5 15.61 15.42 15.4 15.62 15.52 15.64 15.65 15.65 15.63 15.77 15.76 15.77 15.72 15.8 15.75 15.84 15.9 15.96 16.01 16.02 16.1 16.02 15.91 15.99 15.99 15.96 15.76 15.76 15.93 15.94 15.91 15.9 16.01 16.05 16.14 16.22 16.16 16.09 16.08 16.07 16.03 16.1 16.19 16.2 16.21 16.34 16.4 16.42 16.47 16.36 16.17 16.07 16.08 15.94 15.96 15.79 15.8 15.88 15.85 15.91 15.91 15.73 15.75 15.79 15.74 15.62 15.57 15.45 15.57 15.53 15.55 15.57 15.63 15.63 15.64 15.67 15.68 15.7 15.66 15.59 15.6 15.6 15.7 15.83 15.85 15.93 15.9 15.91 15.9 15.89 15.73 15.66 15.68 15.6 15.56 15.58 15.61 15.62 15.55 15.5 15.55 15.38 15.45 15.59 15.58 15.6 15.63 15.6 15.65 15.59 15.54 15.59 15.59 15.39 15.34 15.43 15.19 15.3 15.38 15.42 15.44 15.42 15.24 15.46 15.3 10/31/05 15.31 FUND SNAPSHOT ------------------------------------ Common Share Price $14.52 ------------------------------------ Common Share Net Asset Value $15.46 ------------------------------------ Premium/(Discount) to NAV -6.08% ------------------------------------ Market Yield 5.87% ------------------------------------ Taxable-Equivalent Yield1 8.15% ------------------------------------ Net Assets Applicable to Common Shares ($000) $1,254,638 ------------------------------------ Average Effective Maturity on Securities (Years) 18.56 ------------------------------------ Leverage-Adjusted Duration 8.31 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 9/19/91) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year -3.72% 2.21% ------------------------------------ 5-Year 8.86% 7.54% ------------------------------------ 10-Year 6.37% 6.36% ------------------------------------ STATES (as a % of total investments) ------------------------------------ California 18.6% ------------------------------------ Texas 10.9% ------------------------------------ Alabama 8.2% ------------------------------------ Nevada 5.4% ------------------------------------ Michigan 5.2% ------------------------------------ Colorado 5.0% ------------------------------------ Florida 4.9% ------------------------------------ New York 4.7% ------------------------------------ Illinois 3.6% ------------------------------------ Massachusetts 3.0% ------------------------------------ Wisconsin 2.7% ------------------------------------ South Carolina 2.6% ------------------------------------ Hawaii 2.1% ------------------------------------ Indiana 2.0% ------------------------------------ Ohio 1.9% ------------------------------------ Other 19.2% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ U.S. Guaranteed 20.9% ------------------------------------ Tax Obligation/Limited 19.0% ------------------------------------ Transportation 16.6% ------------------------------------ Tax Obligation/General 11.4% ------------------------------------ Healthcare 8.2% ------------------------------------ Utilities 7.1% ------------------------------------ Water and Sewer 6.5% ------------------------------------ Education and Civic Organizations 5.5% ------------------------------------ Other 4.8% ------------------------------------ 1 Taxable equivalent yield represents the yield that must be earned on a fully taxable investment, in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the taxable equivalent yield is lower. 2 The Fund also paid shareholders a capital gains distribution in December 2004 of $0.0325 per share. 13 Nuveen Premier Insured Municipal Income Fund, Inc. NIF Performance OVERVIEW As of October 31, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 84% U.S. Guaranteed 16% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Nov 0.0815 Dec 0.0815 Jan 0.0815 Feb 0.0815 Mar 0.0785 Apr 0.0785 May 0.0785 Jun 0.0745 Jul 0.0745 Aug 0.0745 Sep 0.071 Oct 0.071 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 11/1/04 15.76 15.88 15.83 16.01 15.4 15.06 15.18 15.1 15.45 15.3 15.37 15.31 15.4 15.51 15.25 15.35 15.3 15.45 15.48 15.25 15.18 15.38 15.22 15.25 15.13 15.13 15.25 15.21 15.3 15.19 15.15 15.15 14.99 15.1 14.84 14.83 14.79 14.62 14.67 14.66 14.71 14.82 14.94 14.91 15.05 15.06 15.21 15.19 15.12 15.24 15.25 15.2 15.19 15.24 15.23 15.35 15.63 15.72 15.76 15.55 15.52 15.54 15.6 15.65 15.79 15.81 16 16.1 15.95 15.93 15.88 15.7 15.69 15.78 15.73 15.64 15.59 15.46 15.75 15.94 15.91 15.86 16 15.94 15.85 15.92 16 16.01 15.8 15.65 15.5 15.22 15.29 15.12 15.18 15.07 14.87 14.76 14.59 14.66 14.6 14.46 14.5 14.65 14.84 14.71 14.9 14.83 14.8 14.71 14.73 14.85 14.89 15.05 15.08 15.14 15.12 14.95 14.85 14.95 14.92 14.94 14.98 15.06 15.08 15.08 15.13 15.22 15.22 15.3 15.2 15.29 15.35 15.31 15.41 15.26 15.3 15.42 15.41 15.35 15.34 15.42 15.43 15.56 15.56 15.65 15.58 15.6 15.55 15.49 15.51 15.5 15.54 15.53 15.48 15.42 15.4 15.4 15.58 15.53 15.5 15.56 15.6 15.65 15.69 15.69 15.62 15.7 15.69 15.74 15.81 15.86 15.85 15.92 16 16 16.03 16 15.81 15.6 15.47 15.54 15.45 15.45 15.53 15.6 15.65 15.67 15.62 15.62 15.7 15.77 15.75 15.7 15.57 15.37 15.4 15.48 15.49 15.36 15.34 15.33 15.24 15.33 15.24 15.26 15.28 15.37 15.34 15.25 15.38 15.37 15.44 15.5 15.5 15.58 15.58 15.45 15.48 15.54 15.53 15.5 15.34 15.38 15.33 15.31 15.37 15.19 15.07 15.15 15.11 15.14 15.14 15.26 15.24 15.25 15.32 15.27 15.14 15.14 15.15 14.96 14.71 14.64 14.5 14.41 14.39 14.42 14.46 14.57 14.67 14.39 14.46 14.41 10/31/05 14.4 FUND SNAPSHOT ------------------------------------ Common Share Price $14.40 ------------------------------------ Common Share Net Asset Value $15.33 ------------------------------------ Premium/(Discount) to NAV -6.07% ------------------------------------ Market Yield 5.92% ------------------------------------ Taxable-Equivalent Yield1 8.22% ------------------------------------ Net Assets Applicable to Common Shares ($000) $297,624 ------------------------------------ Average Effective Maturity on Securities (Years) 16.78 ------------------------------------ Leverage-Adjusted Duration 9.15 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 12/19/91) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year -1.66% 2.16% ------------------------------------ 5-Year 7.89% 7.35% ------------------------------------ 10-Year 6.37% 6.17% ------------------------------------ STATES (as a % of total investments) ------------------------------------ California 18.8% ------------------------------------ Washington 12.4% ------------------------------------ Illinois 9.8% ------------------------------------ Texas 6.9% ------------------------------------ Nevada 5.5% ------------------------------------ New York 4.8% ------------------------------------ Colorado 4.7% ------------------------------------ Georgia 4.1% ------------------------------------ Oregon 3.9% ------------------------------------ Indiana 3.2% ------------------------------------ Florida 3.2% ------------------------------------ Hawaii 2.5% ------------------------------------ Tennessee 2.4% ------------------------------------ Other 17.8% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/General 21.4% ------------------------------------ Transportation 19.1% ------------------------------------ Tax Obligation/Limited 16.1% ------------------------------------ U.S. Guaranteed 15.8% ------------------------------------ Healthcare 10.7% ------------------------------------ Utilities 5.7% ------------------------------------ Water and Sewer 5.2% ------------------------------------ Other 6.0% ------------------------------------ 1 Taxable equivalent yield represents the yield that must be earned on a fully taxable investment, in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the taxable equivalent yield is lower. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2004 of $0.0853 per share. 14 Nuveen Insured Premium Income Municipal Fund 2 NPX Performance OVERVIEW As of October 31, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 91% U.S. Guaranteed 9% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE Nov 0.0815 Dec 0.0815 Jan 0.0815 Feb 0.0815 Mar 0.0785 Apr 0.0785 May 0.0785 Jun 0.0745 Jul 0.0745 Aug 0.0745 Sep 0.071 Oct 0.071 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 11/1/04 14.16 14.15 14.13 14.05 13.75 13.55 13.58 13.46 13.51 13.55 13.6 13.66 13.74 13.74 13.66 13.69 13.65 13.71 13.69 13.6 13.48 13.43 13.26 13.41 13.48 13.56 13.55 13.61 13.6 13.48 13.46 13.59 13.48 13.43 13.35 13.25 13.23 13.22 13.17 13.2 13.16 13.18 13.2 13.21 13.25 13.42 13.41 13.53 13.45 13.4 13.3 13.26 13.23 13.14 13.24 13.27 13.3 13.27 13.24 13.27 13.23 13.29 13.37 13.41 13.56 13.64 13.7 13.75 13.75 13.76 13.9 13.79 13.64 13.71 13.68 13.62 13.51 13.43 13.56 13.79 13.84 13.89 13.87 13.85 13.88 13.89 13.87 13.9 13.7 13.8 13.69 13.48 13.43 13.35 13.46 13.38 13.3 13.26 12.99 12.9 12.81 12.64 12.71 12.98 13.08 13.15 13.19 13.25 13.17 13.06 13.06 13.15 13.08 13.09 13.15 13.15 13.19 13.09 13.07 13.06 13.13 13.13 13.19 13.33 13.37 13.37 13.38 13.35 13.41 13.43 13.35 13.34 13.5 13.43 13.46 13.48 13.56 13.64 13.54 13.51 13.47 13.5 13.54 13.49 13.48 13.46 13.58 13.61 13.65 13.61 13.66 13.68 13.73 13.72 13.74 13.59 13.65 13.56 13.56 13.55 13.47 13.52 13.5 13.55 13.56 13.67 13.68 13.7 13.64 13.6 13.63 13.71 13.75 13.75 13.78 13.81 13.69 13.69 13.66 13.59 13.63 13.7 13.57 13.58 13.67 13.67 13.69 13.69 13.68 13.68 13.68 13.71 13.9 13.84 13.76 13.7 13.56 13.63 13.59 13.6 13.57 13.62 13.59 13.54 13.56 13.6 13.61 13.62 13.61 13.62 13.63 13.67 13.69 13.78 13.82 13.8 13.81 13.89 13.87 13.86 13.79 13.65 13.51 13.47 13.43 13.32 13.29 13.24 13.17 13.05 12.94 13.07 13.1 13.15 13.14 13.1 13.2 13.21 13.13 13.13 13.17 12.9 12.74 12.74 12.75 12.68 12.74 12.75 12.86 12.89 12.87 12.7 12.75 12.75 10/31/05 12.83 FUND SNAPSHOT ------------------------------------ Common Share Price $12.83 ------------------------------------ Common Share Net Asset Value $13.93 ------------------------------------ Premium/(Discount) to NAV -7.90% ------------------------------------ Market Yield 5.94% ------------------------------------ Taxable-Equivalent Yield1 8.25% ------------------------------------ Net Assets Applicable to Common Shares ($000) $520,508 ------------------------------------ Average Effective Maturity on Securities (Years) 18.03 ------------------------------------ Leverage-Adjusted Duration 8.45 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 7/22/93) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year -3.32% 2.14% ------------------------------------ 5-Year 9.04% 7.43% ------------------------------------ 10-Year 7.45% 6.52% ------------------------------------ STATES (as a % of total investments) ------------------------------------ California 14.0% ------------------------------------ Texas 10.0% ------------------------------------ Pennsylvania 8.1% ------------------------------------ New York 7.8% ------------------------------------ Colorado 7.4% ------------------------------------ Washington 5.7% ------------------------------------ Hawaii 5.3% ------------------------------------ Wisconsin 4.4% ------------------------------------ Massachusetts 3.8% ------------------------------------ Nevada 2.8% ------------------------------------ North Dakota 2.6% ------------------------------------ Georgia 2.5% ------------------------------------ Oregon 2.4% ------------------------------------ Utah 2.2% ------------------------------------ Illinois 2.2% ------------------------------------ Other 18.8% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Utilities 17.6% ------------------------------------ Tax Obligation/Limited 16.1% ------------------------------------ Tax Obligation/General 12.7% ------------------------------------ Water and Sewer 11.7% ------------------------------------ Transportation 10.9% ------------------------------------ Healthcare 10.6% ------------------------------------ U.S. Guaranteed 8.8% ------------------------------------ Education and Civic Organizations 7.0% ------------------------------------ Other 4.6% ------------------------------------ 1 Taxable equivalent yield represents the yield that must be earned on a fully taxable investment, in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the taxable equivalent yield is lower. 15 Nuveen Insured Dividend Advantage Municipal Fund NVG Performance OVERVIEW As of October 31, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 94% AAA (Uninsured) 2% AA (Uninsured) 4% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Nov 0.0775 Dec 0.0775 Jan 0.0775 Feb 0.0775 Mar 0.0745 Apr 0.0745 May 0.0745 Jun 0.0705 Jul 0.0705 Aug 0.0705 Sep 0.0705 Oct 0.0705 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 11/1/04 14.94 14.96 14.96 15.04 14.59 14.34 14.46 14.45 14.48 14.68 14.79 14.74 14.71 14.63 14.53 14.62 14.61 14.62 14.65 14.5 14.46 14.55 14.39 14.47 14.44 14.42 14.41 14.36 14.5 14.29 14.18 14.21 14.19 14.13 14.15 14.02 14.03 13.98 13.89 13.94 13.95 14.01 14.1 14.11 14.17 14.32 14.49 14.62 14.64 14.56 14.51 14.44 14.43 14.47 14.45 14.4 14.46 14.44 14.42 14.45 14.45 14.6 14.65 14.69 14.77 14.88 14.82 14.81 14.8 14.88 14.9 14.82 14.81 14.85 14.85 14.81 14.7 14.56 14.56 14.67 14.76 14.72 14.7 14.7 14.67 14.7 14.74 14.68 14.54 14.53 14.35 14.18 14.14 14.02 14.06 14 13.94 13.88 13.63 13.6 13.57 13.52 13.62 13.89 14 14.01 14.05 14.15 14.1 13.93 13.92 13.97 13.99 13.92 13.99 14.07 14.16 14.1 14.05 14.12 14.08 14.11 14.18 14.22 14.3 14.3 14.36 14.37 14.38 14.38 14.31 14.34 14.35 14.26 14.32 14.38 14.38 14.43 14.45 14.47 14.39 14.45 14.5 14.5 14.44 14.53 14.66 14.82 14.84 14.9 14.91 14.9 14.85 14.75 14.63 14.45 14.45 14.47 14.62 14.72 14.69 14.73 14.78 14.72 14.7 14.73 14.72 14.79 14.75 14.77 14.79 14.85 14.84 14.9 14.9 14.94 14.83 14.84 14.85 14.76 14.82 14.82 14.74 14.71 14.7 14.79 14.87 14.94 14.91 14.91 14.88 14.79 14.83 14.88 14.82 14.82 14.86 14.8 14.78 14.74 14.7 14.74 14.73 14.69 14.68 14.64 14.67 14.66 14.7 14.68 14.7 14.73 14.72 14.73 14.86 14.81 14.85 14.88 14.92 14.95 14.89 14.87 14.68 14.55 14.58 14.46 14.55 14.46 14.47 14.49 14.43 14.55 14.45 14.46 14.52 14.5 14.5 14.43 14.5 14.5 14.54 14.37 14.18 14.14 14.1 14.07 13.96 14.11 14.24 14.29 14.24 14.18 14.19 14.12 10/31/05 14.17 FUND SNAPSHOT ------------------------------------ Common Share Price $14.17 ------------------------------------ Common Share Net Asset Value $15.23 ------------------------------------ Premium/(Discount) to NAV -6.96% ------------------------------------ Market Yield 5.97% ------------------------------------ Taxable-Equivalent Yield1 8.29% ------------------------------------ Net Assets Applicable to Common Shares ($000) $454,018 ------------------------------------ Average Effective Maturity on Securities (Years) 17.52 ------------------------------------ Leverage-Adjusted Duration 8.17 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 2.00% 2.93% ------------------------------------ Since Inception 5.13% 8.27% ------------------------------------ STATES (as a % of total investments) ------------------------------------ Texas 18.4% ------------------------------------ Indiana 11.4% ------------------------------------ Florida 10.9% ------------------------------------ Washington 9.4% ------------------------------------ Illinois 9.4% ------------------------------------ California 7.7% ------------------------------------ Tennessee 6.2% ------------------------------------ Pennsylvania 3.3% ------------------------------------ Alabama 2.9% ------------------------------------ Nevada 2.9% ------------------------------------ Other 17.5% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/General 23.0% ------------------------------------ Tax Obligation/Limited 17.0% ------------------------------------ Transportation 15.2% ------------------------------------ Water and Sewer 13.0% ------------------------------------ U.S. Guaranteed 9.1% ------------------------------------ Education and Civic Organizations 8.0% ------------------------------------ Utilities 6.1% ------------------------------------ Healthcare 5.9% ------------------------------------ Other 2.7% ------------------------------------ 1 Taxable equivalent yield represents the yield that must be earned on a fully taxable investment, in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the taxable equivalent yield is lower. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2004 of $0.1199 per share. 16 Nuveen Insured Tax-Free Advantage Municipal Fund NEA Performance OVERVIEW As of October 31, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 89% AAA (Uninsured) 4% AA (Uninsured) 2% A (Uninsured) 4% BBB (Uninsured) 1% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Nov 0.0745 Dec 0.0715 Jan 0.0715 Feb 0.0715 Mar 0.0685 Apr 0.0685 May 0.0685 Jun 0.065 Jul 0.065 Aug 0.065 Sep 0.062 Oct 0.062 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 11/1/04 15 15 14.99 15 14.96 14.79 14.74 14.4 14.33 14.45 14.32 14.37 14.37 14.41 14.44 14.39 14.4 14.36 14.33 14.24 14.1 14.06 13.61 13.68 13.7 13.56 13.69 13.65 13.66 13.65 13.65 13.62 13.53 13.49 13.51 13.52 13.51 13.42 13.31 13.27 13.35 13.41 13.58 13.55 13.54 13.66 13.67 13.75 13.96 13.96 13.94 13.94 13.84 13.87 14.03 14.05 14.02 13.98 13.81 13.93 14.21 14.23 14.29 14.45 14.51 14.3 14.63 14.7 14.74 14.31 14.25 14.19 14.26 14.51 14.43 14.45 14.35 14.2 14.3 14.33 14.38 14.34 14.44 14.44 14.45 14.53 14.51 14.4 14.4 14.52 14.37 14.45 14.31 14.17 14.17 14.2 14.03 14 13.54 13.44 13.22 13.19 13.25 13.45 13.53 13.48 13.63 13.64 13.66 13.68 13.71 13.86 13.79 13.8 13.75 13.73 13.77 13.72 13.73 13.74 13.84 14.15 14.11 14.2 14.12 14.12 14.07 14.08 14.1 13.9 13.82 13.87 14.09 14.04 14.1 14.25 14.27 14.24 14.25 14.26 14.26 14.5 14.44 14.33 14.3 14.11 14.25 14.4 14.49 14.38 14.47 14.47 14.47 14.44 14.33 14.26 14.22 14.17 14.33 14.51 14.35 14.5 14.49 14.49 14.46 14.49 14.51 14.62 14.5 14.57 14.47 14.5 14.47 14.48 14.5 14.5 14.5 14.5 14.43 14.44 14.45 14.41 14.34 14.53 14.46 14.61 14.66 14.83 14.73 14.73 14.75 14.7 14.67 14.51 14.55 14.65 14.55 14.59 14.4 14.42 14.35 14.34 14.34 14.4 14.4 14.36 14.44 14.46 14.39 14.43 14.47 14.47 14.58 14.64 14.57 14.6 14.55 14.43 14.4 14.52 14.52 14.38 14.27 14.31 14.21 14.11 14.04 13.79 13.87 13.9 13.68 13.7 13.78 13.88 13.93 13.92 13.88 13.91 13.91 13.87 14.04 14.12 13.79 13.92 13.78 13.47 13.51 13.5 13.59 13.52 13.5 13.23 13.34 13.41 10/31/05 13.41 FUND SNAPSHOT ------------------------------------ Common Share Price $13.41 ------------------------------------ Common Share Net Asset Value $14.56 ------------------------------------ Premium/(Discount) to NAV -7.90% ------------------------------------ Market Yield 5.55% ------------------------------------ Taxable-Equivalent Yield1 7.71% ------------------------------------ Net Assets Applicable to Common Shares ($000) $269,614 ------------------------------------ Average Effective Maturity on Securities (Years) 21.09 ------------------------------------ Leverage-Adjusted Duration 7.06 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/21/02) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year -4.68% 4.33% ------------------------------------ Since Inception 2.11% 6.57% ------------------------------------ STATES (as a % of total investments) ------------------------------------ California 19.3% ------------------------------------ Texas 8.7% ------------------------------------ Michigan 7.7% ------------------------------------ New York 6.3% ------------------------------------ Washington 6.1% ------------------------------------ Indiana 5.9% ------------------------------------ Pennsylvania 5.8% ------------------------------------ Alabama 5.6% ------------------------------------ South Carolina 4.9% ------------------------------------ Wisconsin 4.5% ------------------------------------ Massachusetts 3.4% ------------------------------------ Colorado 2.6% ------------------------------------ Other 19.2% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/General 30.3% ------------------------------------ Tax Obligation/Limited 23.5% ------------------------------------ Healthcare 14.6% ------------------------------------ Utilities 9.6% ------------------------------------ Transportation 7.1% ------------------------------------ Water and Sewer 6.6% ------------------------------------ U.S. Guaranteed 5.5% ------------------------------------ Other 2.8% ------------------------------------ 1 Taxable equivalent yield represents the yield that must be earned on a fully taxable investment, in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the taxable equivalent yield is lower. 2 The Fund also paid shareholders a capital gains distribution in December 2004 of $0.0097 per share. 17 Shareholder MEETING REPORT The Annual Shareholder Meeting was held on July 26, 2005 at The Northern Trust Bank, 50 S. LaSalle St., Chicago, Illinois.
NQI NIO NIF ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENT WAS REACHED AS FOLLOWS: Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting together together together as a class as a class as a class ==================================================================================================================================== For 33,099,534 72,957,358 17,661,591 Against 211,373 671,979 106,231 Abstain 310,476 833,358 186,921 ------------------------------------------------------------------------------------------------------------------------------------ Total 33,621,383 74,462,695 17,954,743 ==================================================================================================================================== APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting shares voting voting shares together together together together together together as a class as a class as a class as a class as a class as a class ------------------------------------------------------------------------------------------------------------------------------------ Robert P. Bremner For 33,357,665 -- 73,786,920 -- 17,819,619 -- Withhold 263,718 -- 675,775 -- 135,124 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 33,621,383 -- 74,462,695 -- 17,954,743 -- ==================================================================================================================================== Lawrence H. Brown For 33,354,763 -- 73,816,191 -- 17,818,003 -- Withhold 266,620 -- 646,504 -- 136,740 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 33,621,383 -- 74,462,695 -- 17,954,743 -- ==================================================================================================================================== Jack B. Evans For 33,355,407 -- 73,806,630 -- 17,815,370 -- Withhold 265,976 -- 656,065 -- 139,373 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 33,621,383 -- 74,462,695 -- 17,954,743 -- ==================================================================================================================================== William C. Hunter For 33,358,340 -- 73,785,299 -- 17,818,419 -- Withhold 263,043 -- 677,396 -- 136,324 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 33,621,383 -- 74,462,695 -- 17,954,743 -- ==================================================================================================================================== David J. Kundert For 33,357,993 -- 73,818,900 -- 17,826,286 -- Withhold 263,390 -- 643,795 -- 128,457 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 33,621,383 -- 74,462,695 -- 17,954,743 -- ==================================================================================================================================== William J. Schneider For -- 11,831 -- 26,039 -- 6,344 Withhold -- 17 -- 179 -- 27 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 11,848 -- 26,218 -- 6,371 ====================================================================================================================================
18
NQI NIO NIF ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting shares voting voting shares together together together together together together as a class as a class as a class as a class as a class as a class ==================================================================================================================================== Timothy R. Schwertfeger For -- 11,831 -- 26,039 -- 6,344 Withhold -- 17 -- 179 -- 27 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 11,848 -- 26,218 -- 6,371 ==================================================================================================================================== Judith M. Stockdale For 33,288,630 -- 73,807,654 -- 17,818,090 -- Withhold 332,753 -- 655,041 -- 136,653 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 33,621,383 -- 74,462,695 -- 17,954,743 -- ==================================================================================================================================== Eugene S. Sunshine For 33,357,100 -- 73,801,462 -- 17,820,919 -- Withhold 264,283 -- 661,233 -- 133,824 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 33,621,383 -- 74,462,695 -- 17,954,743 -- ==================================================================================================================================== NPX NVG NEA ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENT WAS REACHED AS FOLLOWS: Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting together together together as a class as a class as a class ------------------------------------------------------------------------------------------------------------------------------------ For 34,476,589 28,404,299 17,841,489 Against 220,728 156,837 89,312 Abstain 423,410 287,476 223,917 ------------------------------------------------------------------------------------------------------------------------------------ Total 35,120,727 28,848,612 18,154,718 ====================================================================================================================================
19 Shareholder MEETING REPORT (continued)
NPX NVG NEA ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting shares voting voting shares together together together together together together as a class as a class as a class as a class as a class as a class ==================================================================================================================================== Robert P. Bremner For 34,798,026 -- 28,655,621 -- 17,818,563 -- Withhold 322,701 -- 192,991 -- 336,155 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 35,120,727 -- 28,848,612 -- 18,154,718 -- ==================================================================================================================================== Lawrence H. Brown For 34,801,250 -- 28,655,258 -- 17,818,038 -- Withhold 319,477 -- 193,354 -- 336,680 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 35,120,727 -- 28,848,612 -- 18,154,718 -- ==================================================================================================================================== Jack B. Evans For 34,803,398 -- 28,656,380 -- 17,820,379 -- Withhold 317,329 -- 192,232 -- 334,339 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 35,120,727 -- 28,848,612 -- 18,154,718 -- ==================================================================================================================================== William C. Hunter For 34,807,109 -- 28,656,947 -- 17,819,629 -- Withhold 313,618 -- 191,665 -- 335,089 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 35,120,727 -- 28,848,612 -- 18,154,718 -- ==================================================================================================================================== David J. Kundert For 34,805,787 -- 28,656,125 -- 17,822,165 -- Withhold 314,940 -- 192,487 -- 332,553 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 35,120,727 -- 28,848,612 -- 18,154,718 -- ==================================================================================================================================== William J. Schneider For -- 10,080 -- 9,132 -- 5,636 Withhold -- 76 -- 31 -- 12 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 10,156 -- 9,163 -- 5,648 ==================================================================================================================================== Timothy R. Schwertfeger For -- 10,081 -- 9,132 -- 5,636 Withhold -- 75 -- 31 -- 12 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 10,156 -- 9,163 -- 5,648 ==================================================================================================================================== Judith M. Stockdale For 34,806,671 -- 28,651,440 -- 17,822,526 -- Withhold 314,056 -- 197,172 -- 332,192 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 35,120,727 -- 28,848,612 -- 18,154,718 -- ==================================================================================================================================== Eugene S. Sunshine For 34,800,554 -- 28,660,808 -- 17,819,314 -- Withhold 320,173 -- 187,804 -- 335,404 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 35,120,727 -- 28,848,612 -- 18,154,718 -- ====================================================================================================================================
20 Report of INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE BOARD OF DIRECTORS/TRUSTEES AND SHAREHOLDERS NUVEEN INSURED QUALITY MUNICIPAL FUND, INC. NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC. NUVEEN PREMIER INSURED MUNICIPAL INCOME FUND, INC. NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND 2 NUVEEN INSURED DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN INSURED TAX-FREE ADVANTAGE MUNICIPAL FUND We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Insured Quality Municipal Fund, Inc., Nuveen Insured Municipal Opportunity Fund, Inc., Nuveen Premier Insured Municipal Income Fund, Inc., Nuveen Insured Premium Income Municipal Fund 2, Nuveen Insured Dividend Advantage Municipal Fund and Nuveen Insured Tax-Free Advantage Municipal Fund as of October 31, 2005, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds' internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2005, by correspondence with the custodian and brokers or other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Insured Quality Municipal Fund, Inc., Nuveen Insured Municipal Opportunity Fund, Inc., Nuveen Premier Insured Municipal Income Fund, Inc., Nuveen Insured Premium Income Municipal Fund 2, Nuveen Insured Dividend Advantage Municipal Fund and Nuveen Insured Tax-Free Advantage Municipal Fund at October 31, 2005, and the results of their operations for the year then ended, changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the periods indicated therein in conformity with U.S. generally accepted accounting principles. /s/ Ernst & Young LLP Chicago, Illinois December 14, 2005 21 Nuveen Insured Quality Municipal Fund, Inc. (NQI) Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 1.5% (1.0% OF TOTAL INVESTMENTS) $ 1,135 Birmingham Waterworks and Sewerage Board, Alabama, 1/13 at 100.00 AAA $ 1,216,005 Water and Sewerage Revenue Bonds, Series 2002B, 5.250%, 1/01/20 - MBIA Insured 7,500 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 6/15 at 100.00 AAA 7,735,950 Series 2005A, 5.000%, 6/01/24 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 1.6% (1.1% OF TOTAL INVESTMENTS) 9,200 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/12 at 100.00 AAA 9,462,292 Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 (Alternative Minimum Tax) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS) 4,250 University of Arkansas, Fayetteville, Revenue Bonds, Medical 11/14 at 100.00 Aaa 4,445,882 Sciences Campus, Series 2004B, 5.000%, 11/01/24 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 27.5% (18.2% OF TOTAL INVESTMENTS) 1,500 Acalanes Union High School District, Contra Costa County, 8/15 at 100.00 AAA 1,570,020 California, General Obligation Bonds, Series 2005, 5.000%, 8/01/24 - FGIC Insured 7,620 Alameda County, California, Certificates of Participation, 9/06 at 102.00 AAA 7,948,727 Alameda County Public Facilities Corporation, Series 1991, 6.000%, 9/01/21 (Pre-refunded to 9/01/06) - MBIA Insured California Educational Facilities Authority, Revenue Bonds, Occidental College, Series 2005A: 1,275 5.250%, 10/01/23 - MBIA Insured 10/15 at 100.00 Aaa 1,377,791 1,415 5.000%, 10/01/25 - MBIA Insured 10/15 at 100.00 Aaa 1,478,533 13,175 California Pollution Control Financing Authority, Revenue 9/09 at 101.00 AAA 14,071,559 Refunding Bonds, Southern California Edison Company, Series 1999A, 5.450%, 9/01/29 - MBIA Insured 8,000 California, General Obligation Bonds, Series 2002, 10/12 at 100.00 AAA 8,200,800 5.000%, 10/01/32 - MBIA Insured 20,500 California, General Obligation Refunding Bonds, Series 2002, 4/12 at 100.00 AAA 21,093,885 5.000%, 4/01/27 - AMBAC Insured 3,750 California, General Obligation Bonds, Series 2004, 4/14 at 100.00 AAA 3,862,800 5.000%, 4/01/31 - AMBAC Insured California Department of Water Resources, Water System Revenue Bonds, Central Valley Project, Series 2005AC: 4,045 5.000%, 12/01/24 - MBIA Insured 12/14 at 100.00 AAA 4,223,425 4,000 5.000%, 12/01/26 - MBIA Insured 12/14 at 100.00 AAA 4,164,280 2,340 Cerritos Public Financing Authority, California, Tax Allocation 11/17 at 102.00 AAA 2,459,317 Revenue Bonds, Los Cerritos Redevelopment Projects, Series 2002A, 5.000%, 11/01/24 - AMBAC Insured Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999: 22,985 0.000%, 1/15/24 - MBIA Insured 1/10 at 44.52 AAA 8,472,271 22,000 0.000%, 1/15/31 - MBIA Insured 1/10 at 29.11 AAA 5,210,920 50,000 0.000%, 1/15/37 - MBIA Insured 1/10 at 20.19 AAA 8,314,500 5,000 Garden Grove, California, Certificates of Participation, 3/12 at 101.00 AAA 5,173,750 Financing Project, Series 2002A, 5.125%, 3/01/32 - AMBAC Insured 3,500 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 3,584,210 Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/35 - FGIC Insured 5,000 Inland Empire Solid Waste Financing Authority, California, 8/06 at 102.00 AAA 5,201,350 Revenue Bonds, Landfill Improvement Financing Project, Series 1996B, 6.000%, 8/01/16 (Alternative Minimum Tax) (Pre-refunded to 8/01/06) - FSA Insured 5,453 Moreno Valley Public Finance Authority, California, GNMA 1/12 at 105.00 Aaa 5,933,573 Collateralized Assisted Living Housing Revenue Bonds, CDC Assisted Living Project, Series 2000A, 7.500%, 1/20/42 5,860 Ontario Redevelopment Financing Authority, San Bernardino 2/06 at 100.00 AAA 6,099,850 County, California, Revenue Bonds, Redevelopment Project 1, Series 1993, 5.850%, 8/01/22 - MBIA Insured 22 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) $ 3,615 Pasadena Unified School District, Los Angeles County, 5/13 at 100.00 AAA $ 3,937,133 California, General Obligation Bonds, Series 2003D, 5.000%, 5/01/24 (Pre-refunded to 5/01/13) - MBIA Insured 2,590 Riverside County Public Financing Authority, California, 10/14 at 100.00 AAA 2,658,298 Tax Allocation Bonds, Multiple Projects, Series 2004, 5.000%, 10/01/25 - XLCA Insured 2,000 San Diego Redevelopment Agency, California, Subordinate 9/14 at 100.00 AAA 2,068,420 Lien Tax Allocation Bonds, Centre City Project, Series 2004A, 5.000%, 9/01/21 - XLCA Insured San Francisco Airports Commission, California, Revenue Refunding Bonds, San Francisco International Airport, Second Series 2001, Issue 27A: 7,200 5.125%, 5/01/21 (Alternative Minimum Tax) - MBIA Insured 5/11 at 100.00 AAA 7,386,768 12,690 5.250%, 5/01/31 (Alternative Minimum Tax) - MBIA Insured 5/11 at 100.00 AAA 12,984,662 San Francisco Bay Area Rapid Transit District, California, Sales Tax Revenue Bonds, Series 2005A: 3,485 5.000%, 7/01/21 - MBIA Insured 7/15 at 100.00 AAA 3,671,866 3,655 5.000%, 7/01/22 - MBIA Insured 7/15 at 100.00 AAA 3,842,099 3,840 5.000%, 7/01/23 - MBIA Insured 7/15 at 100.00 AAA 4,027,315 1,000 Sierra Joint Community College District, Tahoe Truckee, 8/14 at 100.00 AAA 1,037,600 California, General Obligation Bonds, School Facilities Improvement District 1, Series 2005A, 5.000%, 8/01/27 - FGIC Insured 1,575 Sierra Joint Community College District, Western Nevada, 8/14 at 100.00 AAA 1,631,905 California, General Obligation Bonds, School Facilities Improvement District 2, Series 2005A, 5.000%, 8/01/27 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 2.0% (1.3% OF TOTAL INVESTMENTS) 3,750 Denver City and County, Colorado, Airport System Revenue 11/06 at 101.00 AAA 3,860,662 Bonds, Series 1996D, 5.500%, 11/15/25 - MBIA Insured 1,250 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 1,305,313 Obligation Bonds, Series 2004, 5.000%, 12/15/24 - FSA Insured 1,000 University of Colorado, Enterprise System Revenue Bonds, 6/15 at 100.00 AAA 1,035,780 Series 2005, 5.000%, 6/01/30 - FGIC Insured Board of Trustees of the University of Northern Colorado, Revenue Bonds, Series 2005: 1,925 5.000%, 6/01/21 - FSA Insured 6/15 at 100.00 AAA 2,029,085 2,015 5.000%, 6/01/22 - FSA Insured 6/15 at 100.00 AAA 2,117,483 1,200 Widefield Water and Sanitation District, El Paso County, 12/14 at 100.00 AAA 1,251,108 Colorado, Water and Sewerage Revenue Refunding and Improvement Bonds, Series 2004, 5.000%, 12/01/25 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.4% (0.2% OF TOTAL INVESTMENTS) 2,000 Connecticut, General Obligation Bonds, Series 2004D, 12/14 at 100.00 AAA 2,109,680 5.000%, 12/01/22 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 1.4% (0.9% OF TOTAL INVESTMENTS) 8,000 Washington Convention Center Authority, District of Columbia, 10/08 at 101.00 AAA 8,316,560 Senior Lien Dedicated Tax Revenue Bonds, Series 1998, 5.000%, 10/01/21 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 8.6% (5.7% OF TOTAL INVESTMENTS) 1,000 Florida State Board of Education, Full Faith and Credit Public 6/12 at 101.00 AAA 1,035,490 Education Capital Outlay Bonds, Series 2002F, 5.000%, 6/01/25 - MBIA Insured 3,250 Florida State Board of Education, Full Faith and Credit Public 6/13 at 101.00 AAA 3,404,603 Education Capital Outlay Bonds, Series 2003J, 5.000%, 6/01/22 - AMBAC Insured 2,000 Florida Board of Education, Lottery Revenue Bonds, 7/15 at 101.00 AAA 2,112,520 Series 2005A, 5.000%, 7/01/22 - AMBAC Insured 1,180 Florida Municipal Loan Council, Revenue Bonds, Series 2003A, No Opt. Call AAA 1,285,527 5.250%, 5/01/13 - MBIA Insured 20,000 Lee County, Florida, Airport Revenue Bonds, Series 2000A, 10/10 at 101.00 AAA 21,512,600 5.750%, 10/01/25 (Alternative Minimum Tax) - FSA Insured 4,115 Miami-Dade County Housing Finance Authority, Florida, 7/11 at 100.00 AAA 4,276,596 Multifamily Housing Revenue Bonds, Monterey Pointe Apartments, Series 2001-2A, 5.850%, 7/01/37 (Alternative Minimum Tax) - FSA Insured 7,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA 7,262,990 International Airport, Series 2002, 5.375%, 10/01/32 (Alternative Minimum Tax) - FGIC Insured 1,000 Ocala, Florida, Utility System Revenue Bonds, Series 2005B, 10/15 at 100.00 Aaa 1,074,750 5.250%, 10/01/25 - FGIC Insured 23 Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued) Portfolio of INVESTMENTS October 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA (continued) $ 3,780 Palm Beach County School Board, Florida, Certificates of 8/13 at 100.00 AAA $ 4,014,020 Participation, Series 2003A, 5.000%, 8/01/16 - AMBAC Insured 4,070 Volusia County School Board, Florida, Certificates of 8/15 at 100.00 Aaa 4,233,818 Participation, Series 2005B, 5.000%, 8/01/23 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 0.2% (0.1% OF TOTAL INVESTMENTS) 1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 11/14 at 100.00 AAA 1,045,330 Series 2004, 5.000%, 11/01/22 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 6.1% (4.0% OF TOTAL INVESTMENTS) 1,620 Hawaii County, Hawaii, General Obligation Bonds, 7/13 at 100.00 AAA 1,694,698 Series 2003A, 5.000%, 7/15/21 - FSA Insured Hawaii Department of Transportation, Airport System Revenue Refunding Bonds, Series 2000B: 8,785 6.625%, 7/01/18 (Alternative Minimum Tax) - FGIC Insured 7/10 at 101.00 AAA 9,784,645 7,000 6.000%, 7/01/19 (Alternative Minimum Tax) - FGIC Insured 7/10 at 101.00 AAA 7,603,820 16,180 Hawaii Department of Budget and Finance, Special Purpose 5/06 at 101.00 AAA 16,547,610 Revenue Bonds, Hawaiian Electric Company Inc., Series 1996A, 6.200%, 5/01/26 (Alternative Minimum Tax) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 14.7% (9.7% OF TOTAL INVESTMENTS) 9,500 Chicago, Illinois, Second Lien General Airport Revenue 1/10 at 101.00 AAA 10,123,770 Refunding Bonds, O'Hare International Airport, Series 1999, 5.500%, 1/01/15 (Alternative Minimum Tax) - AMBAC Insured 25,000 Illinois Health Facilities Authority, Revenue Bonds, Iowa 2/10 at 101.00 AAA 27,348,000 Health System, Series 2000, 5.875%, 2/15/30 - AMBAC Insured 15,785 Illinois, General Obligation Bonds, Illinois FIRST Program, 4/12 at 100.00 AAA 16,680,957 Series 2002, 5.250%, 4/01/27 - FSA Insured 13,275 Illinois, General Obligation Bonds, Illinois FIRST Program, 5/11 at 100.00 AAA 13,973,132 Series 2001, 5.250%, 5/01/26 - FSA Insured 18,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 7,159,320 Bonds, McCormick Place Expansion Project, Series 2002A, 0.000%, 12/15/24 - MBIA Insured 10,000 University of Illinois, Certificates of Participation, Utility 8/11 at 100.00 AAA 10,843,900 Infrastructure Projects, Series 2001B, 5.250%, 8/15/21 (Pre-refunded to 8/15/11) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 1.6% (1.1% OF TOTAL INVESTMENTS) 7,790 Indiana Transportation Finance Authority, Highway Revenue No Opt. Call AAA 9,457,294 Bonds, Series 1990A, 7.250%, 6/01/15 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.5% (0.4% OF TOTAL INVESTMENTS) 3,000 Wichita, Kansas, Water and Sewerage Utility Revenue Bonds, 10/13 at 100.00 AAA 3,141,810 Series 2003, 5.000%, 10/01/21 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 5.7% (3.8% OF TOTAL INVESTMENTS) 3,015 Kentucky Asset/Liability Commission, General Fund Revenue 5/15 at 100.00 AAA 3,134,032 Project Notes, First Series 2005, 5.000%, 5/01/25 - MBIA Insured Kentucky Economic Development Finance Authority, Health System Revenue Bonds, Norton Healthcare Inc., Series 2000C: 6,345 6.150%, 10/01/27 - MBIA Insured 10/13 at 101.00 AAA 7,253,287 18,185 6.150%, 10/01/28 - MBIA Insured 10/13 at 101.00 AAA 20,764,360 2,230 Kentucky State Property and Buildings Commission, Revenue 8/15 at 100.00 AAA 2,337,709 Bonds, Project 85, Series 2005, 5.000%, 8/01/23 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 0.7% (0.5% OF TOTAL INVESTMENTS) 4,045 Orleans Levee District, Louisiana, Levee District General 12/05 at 103.00 AAA 4,171,042 Obligation Bonds, Series 1986, 5.950%, 11/01/15 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 1.5% (1.0% OF TOTAL INVESTMENTS) 8,000 Maine Health and Higher Educational Facilities Authority, 7/09 at 101.00 AAA 8,712,240 Revenue Bonds, Series 1999B, 6.000%, 7/01/29 - MBIA Insured 24 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 1.4% (0.9% OF TOTAL INVESTMENTS) $ 7,535 Maryland Transportation Authority, Airport Parking Revenue 3/12 at 101.00 AAA $ 8,031,783 Bonds, Baltimore-Washington International Airport Passenger Facility, Series 2002B, 5.500%, 3/01/18 (Alternative Minimum Tax) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 1.9% (1.3% OF TOTAL INVESTMENTS) 5,000 Massachusetts Bay Transportation Authority, Senior Sales 7/12 at 100.00 AAA 5,373,050 Tax Revenue Refunding Bonds, Series 2002A, 5.000%, 7/01/27 (Pre-refunded to 7/01/12) - FGIC Insured Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, Series 2004: 1,250 5.250%, 1/01/21 (Pre-refunded to 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 1,356,513 1,000 5.250%, 1/01/22 (Pre-refunded to 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 1,085,210 1,195 5.250%, 1/01/23 (Pre-refunded to 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 1,296,826 2,000 5.250%, 1/01/24 (Pre-refunded to 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 2,170,420 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 0.8% (0.6% OF TOTAL INVESTMENTS) 4,750 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 4,974,295 Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 1999A, 5.550%, 9/01/29 (Alternative Minimum Tax) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 0.0% (0.0% OF TOTAL INVESTMENTS) 127 St. Louis Park, Minnesota, GNMA Mortgage-Backed 4/06 at 100.00 Aaa 127,080 Securities Program Single Family Residential Mortgage Revenue Bonds, Series 1991A, 7.250%, 4/20/23 ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 1.4% (1.0% OF TOTAL INVESTMENTS) 2,545 Harrison County Wastewater Management District, No Opt. Call AAA 3,231,030 Mississippi, Wastewater Treatment Facilities Revenue Refunding Bonds, Series 1991A, 8.500%, 2/01/13 - FGIC Insured 2,715 Harrison County Wastewater Management District, No Opt. Call AAA 3,368,473 Mississippi, Revenue Refunding Bonds, Wastewater Treatment Facilities, Series 1991B, 7.750%, 2/01/14 - FGIC Insured 1,865 Mississippi Home Corporation, GNMA Collateralized Single 6/06 at 105.00 Aaa 1,885,440 Family Mortgage Revenue Bonds, Series 1996C, 7.600%, 6/01/29 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 0.3% (0.2% OF TOTAL INVESTMENTS) 1,500 Camdenton Reorganized School District R3, Camden County, No Opt. Call AAA 1,615,080 Missouri, General Obligation Bonds, Series 2005, 5.250%, 3/01/24 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 7.0% (4.6% OF TOTAL INVESTMENTS) 33,700 Director of Nevada State Department of Business and 1/10 at 100.00 AAA 34,826,254 Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000, 5.375%, 1/01/40 - AMBAC Insured 5,720 Reno, Nevada, Senior Lien Sales and Room Tax Revenue 6/12 at 100.00 AAA 5,885,422 Bonds, Reno Transportation Rail Access Corridor Project, Series 2002, 5.125%, 6/01/32 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 1.1% (0.7% OF TOTAL INVESTMENTS) New Jersey Economic Development Authority, Revenue Bonds, Motor Vehicle Surcharge, Series 2004A: 1,700 5.000%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 1,784,609 1,700 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 1,780,852 2,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 2,628,950 5.000%, 1/01/19 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 1.1% (0.7% OF TOTAL INVESTMENTS) New Mexico Finance Authority, Public Project Revolving Fund Revenue Bonds, Series 2004C: 1,420 5.000%, 6/01/22 - AMBAC Insured 6/14 at 100.00 AAA 1,485,987 3,290 5.000%, 6/01/23 - AMBAC Insured 6/14 at 100.00 AAA 3,435,714 1,530 New Mexico State University, Revenue Bonds, Series 2004, 4/14 at 100.00 AAA 1,596,677 5.000%, 4/01/23 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 15.3% (10.1% OF TOTAL INVESTMENTS) 8,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA 8,314,560 Contract Refunding Bonds, Series 2002A, 5.000%, 7/01/25 - FGIC Insured 11,760 Dormitory Authority of the State of New York, New York City, 5/10 at 101.00 AAA 13,016,674 Lease Revenue Bonds, Court Facilities, Series 1999, 5.750%, 5/15/30 (Pre-refunded to 5/15/10) - AMBAC Insured 25 Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued) Portfolio of INVESTMENTS October 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) $ 1,100 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA $ 1,144,275 Mental Health Services Facilities Improvements, Series 2005A, 5.000%, 2/15/24 - AMBAC Insured 3,000 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 3,127,710 Mental Health Services Facilities Improvements, Series 2005D, 5.000%, 2/15/23 - FGIC Insured 10,875 New York State Housing Finance Agency, Mortgage Revenue 5/06 at 102.00 AAA 11,253,559 Refunding Bonds, Housing Project, Series 1996A, 6.125%, 11/01/20 - FSA Insured 4,200 New York State Mortgage Agency, Homeowner Mortgage 10/09 at 100.00 AAA 4,348,806 Revenue Bonds, Series 82, 5.550%, 10/01/19 (Alternative Minimum Tax) - MBIA Insured 15,000 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 AAA 16,494,600 School Districts Financing Program, Series 2002D, 5.500%, 10/01/17 - MBIA Insured 10,120 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 10,573,072 Series 2005G, 5.000%, 1/01/26 - FSA Insured 1,950 New York State Thruway Authority, Highway and Bridge 10/15 at 100.00 AAA 2,056,782 Trust Fund Bonds, Second Generation, Series 2005B, 5.000%, 4/01/21 - AMBAC Insured New York State Thruway Authority, State Personal Income Tax Revenue Bonds, Series 2005A: 3,500 5.000%, 3/15/19 - FSA Insured 3/15 at 100.00 AAA 3,710,735 6,595 5.000%, 3/15/25 - FSA Insured 3/15 at 100.00 AAA 6,877,860 New York City Sales Tax Asset Receivable Corporation, New York, Dedicated Revenue Bonds, Local Government Assistance Corporation, Series 2004A: 1,630 5.000%, 10/15/24 - MBIA Insured 10/14 at 100.00 AAA 1,707,246 1,675 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 1,751,849 5,000 Triborough Bridge and Tunnel Authority, New York, Subordinate 11/13 at 100.00 AAA 5,148,300 Lien General Purpose Revenue Bonds, Series 2003A, 5.000%, 11/15/32 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 2.7% (1.8% OF TOTAL INVESTMENTS) 7,000 Cleveland State University, Ohio, General Receipts Bonds, 6/14 at 100.00 AAA 7,532,700 Series 2004, 5.250%, 6/01/19 - FGIC Insured 5,000 Lorain County, Ohio, Health Facilities Revenue Bonds, Catholic 9/09 at 102.00 AAA 5,363,800 Healthcare Partners, Series 1999A, 5.500%, 9/01/29 - AMBAC Insured 3,065 Oak Hills Local School District, Hamilton County, Ohio, 12/15 at 100.00 AAA 3,207,001 General Obligation Bonds, Series 2005, 5.000%, 12/01/24 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.6% (1.7% OF TOTAL INVESTMENTS) 7,000 Allegheny County, Pennsylvania, Airport Revenue Refunding 1/08 at 101.00 AAA 7,235,900 Bonds, Pittsburgh International Airport, Series 1997A, 5.250%, 1/01/16 (Alternative Minimum Tax) - MBIA Insured 3,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AAA 3,138,990 Revenue Bonds, Series 2005A, 5.000%, 12/01/23 - MBIA Insured 2,500 Cumberland Valley School District, Cumberland County, 11/15 at 100.00 Aaa 2,644,550 Pennsylvania, General Obligation Bonds, Series 2005, 5.000%, 11/15/20 - FSA Insured 2,000 Pittsburgh Public Parking Authority, Pennsylvania, Parking 12/15 at 100.00 AAA 2,082,740 Revenue Bonds, Series 2005B, 5.000%, 12/01/23 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 1.4% (0.9% OF TOTAL INVESTMENTS) 5,000 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 5,615,700 Transportation Authority, Series 2003AA, 5.500%, 7/01/16 - FGIC Insured 2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 2,652,325 Series 2005RR, 5.000%, 7/01/22 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 0.5% (0.4% OF TOTAL INVESTMENTS) 3,000 Charleston County School District, South Carolina, General 2/14 at 100.00 AAA 3,141,180 Obligation Bonds, Series 2004A, 5.000%, 2/01/22 - AMBAC Insured 26 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 1.4% (0.9% OF TOTAL INVESTMENTS) Knox County Health, Educational and Housing Facilities Board, Tennessee, Hospital Revenue Refunding Bonds, Covenant Health, Series 2002A: $ 7,500 0.000%, 1/01/24 - FSA Insured 1/13 at 52.75 AAA $ 2,732,700 5,000 0.000%, 1/01/25 - FSA Insured 1/13 at 49.71 AAA 1,712,450 2,750 0.000%, 1/01/26 - FSA Insured 1/13 at 46.78 AAA 884,290 Tennessee State School Bond Authority, Higher Educational Facilities Second Program Bonds, Series 2005A: 1,400 5.000%, 5/01/24 - MBIA Insured 5/15 at 100.00 AAA 1,462,986 1,250 5.000%, 5/01/26 - MBIA Insured 5/15 at 100.00 AAA 1,304,275 ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 22.6% (14.9% OF TOTAL INVESTMENTS) 8,000 Abilene Health Facilities Development Corporation, Texas, 3/06 at 102.00 AAA 8,176,480 Hospital Revenue Refunding and Improvement Bonds, Hendrick Medical Center Project, Series 1995C, 6.150%, 9/01/25 - MBIA Insured 5,275 Austin, Texas, Combined Utility System Revenue Refunding 11/07 at 100.00 AAA 5,424,810 Bonds, Series 1997, 5.125%, 11/15/20 - FSA Insured 3,135 Corpus Christi, Texas, Utility System Revenue Bonds, 7/14 at 100.00 AAA 3,357,397 Series 2004, 5.250%, 7/15/20 - FSA Insured 3,000 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 AAA 3,257,130 Refunding and Improvement Bonds, Series 2001A, 5.750%, 11/01/13 (Alternative Minimum Tax) - FGIC Insured 3,735 Grand Prairie Independent School District, Dallas County, 2/13 at 100.00 AAA 3,855,006 Texas, General Obligation Bonds, Series 2003, 5.125%, 2/15/31 - FSA Insured Harris County Hospital District, Texas, Revenue Refunding Bonds, Series 1990: 1,165 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 1,236,962 2,235 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 2,429,467 4,500 Houston, Texas, General Obligation Public Improvement Bonds, 3/11 at 100.00 AAA 4,661,910 Series 2001A, 5.000%, 3/01/22 - FSA Insured 4,685 Houston, Texas, Subordinate Lien Airport System Revenue 7/10 at 100.00 AAA 4,941,410 Bonds, Series 2000A, 5.500%, 7/01/19 (Alternative Minimum Tax) - FSA Insured 5,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AAA 5,316,200 Bonds, Series 2004A, 5.250%, 5/15/24 - FGIC Insured 17,000 Houston, Texas, Junior Lien Water and Sewerage System No Opt. Call AAA 20,032,630 Revenue Refunding Bonds, Series 2002A, 5.750%, 12/01/32 - FSA Insured 19,200 Jefferson County Health Facilities Development Corporation, 8/11 at 100.00 AAA 19,843,392 Texas, FHA-Insured Mortgage Revenue Bonds, Baptist Hospital of Southeast Texas, Series 2001, 5.400%, 8/15/31 - AMBAC Insured 6,000 Laredo Community College District, Texas, Limited Tax 8/10 at 100.00 AAA 6,355,680 General Obligation Bonds, Series 2001, 5.375%, 8/01/31 - AMBAC Insured 2,000 Laredo Independent School District Public Facilities 8/11 at 100.00 AAA 2,046,480 Corporation, Texas, Lease Revenue Bonds, Series 2004A, 5.000%, 8/01/24 - AMBAC Insured 22,045 North Central Texas Health Facilities Development Corporation, 8/12 at 101.00 AAA 22,919,966 Revenue Bonds, Children's Medical Center of Dallas, Series 2002, 5.250%, 8/15/32 - AMBAC Insured 17,429 Tarrant County Housing Finance Corporation, Texas, GNMA 3/12 at 105.00 Aaa 18,633,344 Collateralized Mortgage Loan Multifamily Housing Revenue Bonds, Bardin Green Apartments Project, Series 2001, 6.600%, 9/20/42 ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.6% (0.4% OF TOTAL INVESTMENTS) 3,215 Salt Lake City, Utah, Hospital Revenue Refunding Bonds, 11/05 at 100.00 AAA 3,357,039 IHC Hospitals Inc., Series 1988A, 8.000%, 5/15/07 ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.5% (0.3% OF TOTAL INVESTMENTS) 2,575 Spotsylvania County, Virginia, Water and Sewerage System 6/15 at 100.00 AAA 2,699,785 Revenue Bonds, Series 2005, 5.000%, 6/01/24 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 11.0% (7.2% OF TOTAL INVESTMENTS) 10,730 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 11,435,498 Consolidated System Revenue Refunding Bonds, Series 2001C, 5.650%, 7/01/32 (Alternative Minimum Tax) - MBIA Insured 27 Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued) Portfolio of INVESTMENTS October 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON (continued) $ 4,640 Seattle Housing Authority, Washington, GNMA Collateralized 9/11 at 102.00 AAA $ 5,028,878 Mortgage Loan Low Income Housing Assistance Revenue Bonds, RHF/Esperanza Apartments Project, Series 2000A, 6.125%, 3/20/42 (Alternative Minimum Tax) 15,025 Seattle Housing Authority, Washington, GNMA Collateralized 11/11 at 105.00 AAA 16,889,753 Mortgage Loan Low Income Housing Assistance Revenue Bonds, Park Place Project, Series 2000A, 7.000%, 5/20/42 5,000 Seattle, Washington, Municipal Light and Power Revenue 12/10 at 100.00 AAA 5,304,100 Bonds, Series 2000, 5.250%, 12/01/21 - FSA Insured 10,000 Washington, General Obligation Refunding Bonds, 1/12 at 100.00 AAA 10,455,000 Series R-2003A, 5.000%, 1/01/19 - MBIA Insured 2,500 Washington State Healthcare Facilities Authority, Revenue 12/09 at 101.00 AAA 2,658,825 Bonds, Providence Services, Series 1999, 5.375%, 12/01/19 - MBIA Insured 11,750 Washington Public Power Supply System, Revenue Refunding 7/08 at 102.00 AAA 12,381,210 Bonds, Nuclear Project 1, Series 1998A, 5.125%, 7/01/17 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 2.4% (1.6% OF TOTAL INVESTMENTS) 12,845 West Virginia Water Development Authority, Infrastructure 10/10 at 100.00 AAA 13,788,722 Revenue Bonds, Infrastructure and Jobs Development Council Program, Series 2000A, 5.500%, 10/01/39 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 0.7% (0.3% OF TOTAL INVESTMENTS) 2,180 Green Bay, Wisconsin, Water System Revenue Bonds, 11/14 at 100.00 Aaa 2,264,015 Series 2004, 5.000%, 11/01/26 - FSA Insured 1,675 Wisconsin Public Power Incorporated System, Power Supply 7/15 at 100.00 AAA 1,724,731 System Revenue Bonds, Series 2005A, 5.000%, 7/01/30 (WI, settling 11/02/05) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 930,394 Total Long-Term Investments (cost $843,130,570) - 151.5% 887,216,397 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.8% 16,560,816 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (54.3)% (318,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 585,777,213 ====================================================================================================================
All of the bonds in the Portfolio of Investments are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements. 28 Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 12.4% (8.2% OF TOTAL INVESTMENTS) $ 3,815 Alabama Housing Finance Authority, GNMA Collateralized 7/06 at 102.00 Aaa $ 3,881,915 Multifamily Housing Revenue Refunding Bonds, Royal Hills Apartments, Series 1995F, 6.500%, 7/20/30 11,000 Birmingham Special Care Facilities Financing Authority, 11/05 at 102.00 AAA 11,240,240 Alabama, Revenue Bonds, Baptist Health System Inc., Series 1995B, 5.875%, 11/15/20 - MBIA Insured Birmingham Special Care Facilities Financing Authority, Alabama, Revenue Bonds, Baptist Health System Inc., Series 1996A: 7,465 5.875%, 11/15/19 - MBIA Insured 11/06 at 102.00 AAA 7,783,905 1,750 5.875%, 11/15/26 - MBIA Insured 11/06 at 102.00 AAA 1,825,495 11,175 Hoover Board of Education, Alabama, Capital Outlay Tax 2/11 at 100.00 AAA 11,839,689 Anticipation Warrants, Series 2001, 5.250%, 2/15/22 - MBIA Insured 3,750 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 6/15 at 100.00 AAA 3,867,975 Series 2005A, 5.000%, 6/01/24 - MBIA Insured Jefferson County, Alabama, Sewer Revenue Capital Improvement Warrants, Series 1999A: 10,815 5.000%, 2/01/33 (Pre-refunded to 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 11,438,809 9,790 5.000%, 2/01/33 (Pre-refunded to 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 10,373,386 29,860 5.750%, 2/01/38 (Pre-refunded to 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 32,323,450 18,760 Jefferson County, Alabama, Sewer Revenue Capitol 2/11 at 101.00 AAA 20,112,221 Improvement Warrants, Series 2001A, 5.000%, 2/01/41 (Pre-refunded to 2/01/11) - FGIC Insured Jefferson County, Alabama, Sewer Revenue Capital Improvement Warrants, Series 2002D: 425 5.000%, 2/01/38 (Pre-refunded to 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 454,882 14,800 5.000%, 2/01/42 (Pre-refunded to 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 15,904,376 10,195 Jefferson County, Alabama, Sewer Revenue Refunding 2/07 at 100.00 AAA 10,416,945 Warrants, Series 1997A, 5.375%, 2/01/27 - FGIC Insured 5,240 Jefferson County, Alabama, Sewer Revenue Refunding 2/11 at 101.00 AAA 5,635,934 Warrants, Series 2003B, 5.000%, 2/01/41 (Pre-refunded to 2/01/11) - FGIC Insured 2,500 Jefferson County, Alabama, Sewer Revenue Capital 8/12 at 100.00 AAA 2,705,025 Improvement Warrants, Series 2002B, 5.125%, 2/01/42 (Pre-refunded to 8/01/12) - FGIC Insured 6,000 University of Alabama, Tuscaloosa, General Revenue Bonds, 7/14 at 100.00 AAA 6,215,160 Series 2004A, 5.000%, 7/01/29 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 2.4% (1.6% OF TOTAL INVESTMENTS) 11,245 Alaska Housing Finance Corporation, General Mortgage 6/09 at 100.00 AAA 11,598,768 Revenue Bonds, Series 1999A, 6.050%, 6/01/39 - MBIA Insured 11,460 Alaska Housing Finance Corporation, Governmental Purpose 12/05 at 102.00 AAA 11,717,277 Bonds, Series 1995A, 5.875%, 12/01/30 (Pre-refunded to 12/01/05) - MBIA Insured 3,190 Alaska Housing Finance Corporation, Collateralized Veterans 12/09 at 100.00 AAA 3,324,171 Mortgage Program Bonds, First Series 1999A-1, 6.150%, 6/01/39 3,000 Alaska Student Loan Corporation, Student Loan Revenue Bonds, 7/08 at 100.00 AAA 3,080,040 Series 1998A, 5.250%, 7/01/14 (Alternative Minimum Tax) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 2.4% (1.6% OF TOTAL INVESTMENTS) Arizona State University, Certificates of Participation, Resh Infrastructure Projects, Series 2005A: 2,000 5.000%, 9/01/25 - AMBAC Insured 3/15 at 100.00 AAA 2,083,920 2,000 5.000%, 9/01/27 - AMBAC Insured 3/15 at 100.00 AAA 2,080,820 1,000 Arizona State University, System Revenue Bonds, Series 2005, 7/15 at 100.00 AAA 1,041,570 5.000%, 7/01/27 - AMBAC Insured 1,000 Maricopa County Union High School District 210, Phoenix, 7/14 at 100.00 AAA 1,049,030 Arizona, General Obligation Bonds, Series 2004A, 5.000%, 7/01/22 - FSA Insured 29 Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued) Portfolio of INVESTMENTS October 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA (continued) $ 3,200 Mesa, Arizona, Street and Highway User Tax Revenue Bonds, 7/15 at 100.00 AAA $ 3,350,944 Series 2005, 5.000%, 7/01/24 - FSA Insured 1,150 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/14 at 100.00 AAA 1,196,265 Wastewater System Revenue Bonds, Series 2004, 5.000%, 7/01/27 - MBIA Insured 13,490 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/15 at 100.00 AAA 13,714,204 Water System Revenue Bonds, Series 2005, 4.750%, 7/01/25 - MBIA Insured 5,695 Pima County Industrial Development Authority, Arizona, Lease 1/06 at 101.00 AAA 5,828,035 Obligation Revenue Refunding Bonds, Tucson Electric Power Company, Series 1988A, 7.250%, 7/15/10 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 28.3% (18.6% OF TOTAL INVESTMENTS) California Rural Home Mortgage Finance Authority, GNMA Mortgage-Backed Securities Program Single Family Mortgage Revenue Bonds, Series 1996A: 70 7.550%, 11/01/26 (Alternative Minimum Tax) No Opt. Call AAA 71,381 60 7.750%, 5/01/27 (Alternative Minimum Tax) No Opt. Call AAA 61,228 4,500 California, General Obligation Bonds, Series 1998, 10/08 at 101.00 AAA 4,700,655 5.000%, 10/01/19 - FGIC Insured 10,000 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 AAA 10,467,600 Revenue Bonds, Series 2002A, 5.300%, 12/01/21 - AMBAC Insured California Department of Water Resources, Water System Revenue Bonds, Central Valley Project, Series 2005AC: 3,700 5.000%, 12/01/24 - MBIA Insured 12/14 at 100.00 AAA 3,863,207 2,820 5.000%, 12/01/27 - MBIA Insured 12/14 at 100.00 AAA 2,929,416 California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A: 30,000 5.375%, 5/01/17 - XLCA Insured 5/12 at 101.00 AAA 32,409,600 35,000 5.375%, 5/01/18 - AMBAC Insured 5/12 at 101.00 AAA 37,815,400 3,500 Coachella Valley Unified School District, Riverside County, 8/15 at 100.00 AAA 3,652,110 California, General Obligation Bonds, Series 2005A, 5.000%, 8/01/26 - FGIC Insured 20,000 Cucamonga County Water District, San Bernardino County, 9/11 at 101.00 AAA 20,555,400 California, Certificates of Participation, Water Shares Purchase, Series 2000, 5.125%, 9/01/35 - FGIC Insured 5,750 East Bay Municipal Utility District, Alameda and Contra 6/15 at 100.00 AAA 5,996,618 Costa Counties, California, Water System Subordinated Revenue Bonds, Series 2005A, 5.000%, 6/01/27 - MBIA Insured 3,190 El Camino Community College District, California, General 8/15 at 100.00 AAA 3,393,554 Obligation Bonds, Series 2005, 5.000%, 8/01/18 - FSA Insured 10,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 10,217,300 Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/38 - FGIC Insured 5,000 Long Beach Bond Financing Authority, California, Lease 11/11 at 101.00 AAA 5,230,700 Revenue Refunding Bonds, Long Beach Aquarium of the South Pacific, Series 2001, 5.250%, 11/01/30 - AMBAC Insured 2,740 Los Angeles Harbors Department, California, Revenue Bonds, 8/16 at 102.00 AAA 2,837,160 Series 2006A, 5.000%, 8/01/22 (Alternative Minimum Tax) (WI, settling 5/04/06) - FGIC Insured 20,000 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 20,934,200 Obligation Bonds, Series 2003A, 5.000%, 7/01/21 - FSA Insured 12,500 Orange County, California, Recovery Certificates of 7/06 at 102.00 AAA 12,993,125 Participation, Series 1996A, 6.000%, 7/01/26 (Pre-refunded to 7/01/06) - MBIA Insured 6,205 Port of Oakland, California, Revenue Bonds, Series 2002L, 11/12 at 100.00 AAA 6,353,982 5.000%, 11/01/22 (Alternative Minimum Tax) - FGIC Insured Poway Redevelopment Agency, California, Tax Allocation Bonds, Paguay Redevelopment Project, Series 2001: 15,000 5.200%, 6/15/30 - AMBAC Insured 12/11 at 101.00 AAA 15,611,700 5,000 5.125%, 6/15/33 - AMBAC Insured 12/11 at 101.00 AAA 5,149,950 6,000 Redlands Unified School District, San Bernardino County, 7/13 at 100.00 AAA 6,213,960 California, General Obligation Bonds, Series 2003, 5.000%, 7/01/26 - FSA Insured 2,285 Rio Hondo Community College District, California, General 8/15 at 100.00 AAA 2,415,816 Obligation Bonds, Series 2005A, 5.000%, 8/01/20 (WI, settling 11/03/05) - FGIC Insured 30 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) $ 2,500 Sacramento County Sanitation Financing Authority, 12/15 at 100.00 AAA $ 2,575,700 California, Revenue Bonds, Series 2005B, 4.750%, 12/01/21 - FGIC Insured 6,500 Salinas, California, GNMA Collateralized Housing Facility 1/06 at 101.00 AAA 6,572,150 Revenue Refunding Bonds, Villa Serra Project, Series 1994A, 6.600%, 7/20/30 13,710 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 AAA 14,101,832 Refunding Bonds, San Francisco International Airport, Second Series 2001, Issue 27A, 5.250%, 5/01/26 (Alternative Minimum Tax) - MBIA Insured 11,500 San Francisco Bay Area Rapid Transit District, California, 7/11 at 100.00 AAA 11,829,245 Sales Tax Revenue Bonds, Series 2001, 5.125%, 7/01/36 - AMBAC Insured San Francisco Bay Area Rapid Transit District, California, Sales Tax Revenue Bonds, Series 2005A: 1,165 5.000%, 7/01/21 - MBIA Insured 7/15 at 100.00 AAA 1,227,467 1,220 5.000%, 7/01/22 - MBIA Insured 7/15 at 100.00 AAA 1,282,452 1,280 5.000%, 7/01/23 - MBIA Insured 7/15 at 100.00 AAA 1,342,438 66,685 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 32,865,702 County, California, Senior Lien Toll Road Revenue Bonds, Series 1993, 0.000%, 1/01/21 San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue Refunding Bonds, Series 1997A: 31,615 5.250%, 1/15/30 - MBIA Insured 1/07 at 102.00 AAA 32,854,940 21,500 0.000%, 1/15/32 - MBIA Insured No Opt. Call AAA 5,750,820 12,525 San Jose Redevelopment Agency, California, Tax Allocation 8/10 at 101.00 AAA 13,028,756 Bonds, Merged Area Redevelopment Project, Series 2002, 5.000%, 8/01/20 - MBIA Insured 11,000 Santa Ana Financing Authority, California, Lease Revenue No Opt. Call AAA 13,318,800 Bonds, Police Administration and Housing Facility, Series 1994A, 6.250%, 7/01/24 - MBIA Insured 5,000 Walnut Energy Center Authority, California, Electric Revenue 1/14 at 100.00 AAA 5,122,600 Bonds, Turlock Irrigation District, Series 2004A, 5.000%, 1/01/34 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 7.7% (5.0% OF TOTAL INVESTMENTS) 1,900 Aspen, Colorado, Sales Tax Revenue Bonds, Parks and Open 11/15 at 100.00 AAA 2,044,666 Space, Series 2005B, 5.250%, 11/01/24 - FSA Insured 1,000 Colorado Department of Transportation, Certificates of 6/14 at 100.00 AAA 1,037,170 Participation, Series 2004, 5.000%, 6/15/25 - MBIA Insured 10,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 10,689,600 Refunding Bonds, Series 2001A, 5.500%, 11/15/15 (Alternative Minimum Tax) - FGIC Insured 10,545 Denver City and County, Colorado, Airport System Revenue 11/06 at 101.00 AAA 10,856,183 Bonds, Series 1996D, 5.500%, 11/15/25 - MBIA Insured 4,950 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 AAA 5,060,434 Revenue Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/33 - XLCA Insured 1,740 Douglas County School District RE1, Douglas and Elbert 12/14 at 100.00 Aaa 1,805,076 Counties, Colorado, General Obligation Bonds, Series 2005B, 5.000%, 12/15/28 - FSA Insured 35,995 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 14,997,677 Bonds, Series 1997B, 0.000%, 9/01/23 - MBIA Insured 30,800 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 102.00 AAA 34,008,744 Bonds, Series 2000A, 5.750%, 9/01/35 - MBIA Insured 11,800 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 74.80 AAA 7,332,756 Bonds, Series 2000B, 0.000%, 9/01/15 (Pre-refunded to 9/01/10) - MBIA Insured 10,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call AAA 3,316,100 Series 2004A, 0.000%, 9/01/27 - MBIA Insured 1,250 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 1,305,313 Obligation Bonds, Series 2004, 5.000%, 12/15/24 - FSA Insured 2,500 Summit County School District RE-1, Summit, Colorado, 12/14 at 100.00 Aaa 2,616,000 General Obligation Bonds, Series 2004B, 5.000%, 12/01/24 - FGIC Insured 1,250 University of Colorado, Enterprise System Revenue Bonds, 6/15 at 100.00 AAA 1,294,725 Series 2005, 5.000%, 6/01/30 - FGIC Insured 31 Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued) Portfolio of INVESTMENTS October 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.8% (0.5% OF TOTAL INVESTMENTS) $ 4,000 Connecticut, General Obligation Bonds, Series 2004D, 12/14 at 100.00 AAA $ 4,203,960 5.000%, 12/01/24 - MBIA Insured 2,100 Connecticut Health and Educational Facilities Authority, 11/15 at 100.00 AAA 2,235,156 Revenue Bonds, Connecticut State University System, Series 2005G, 5.000%, 11/01/19 - FSA Insured 3,335 Greater New Haven Water Pollution Control Authority, 11/15 at 100.00 AAA 3,491,778 Connecticut, Regional Wastewater System Revenue Bonds, Series 2005A, 5.000%, 11/15/25 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 1.0% (0.6% OF TOTAL INVESTMENTS) 1,915 District of Columbia Housing Finance Agency, GNMA 12/05 at 100.00 AAA 1,916,417 Collateralized Single Family Mortgage Revenue Bonds, Series 1990B, 7.100%, 12/01/24 (Alternative Minimum Tax) District of Columbia Water and Sewerage Authority, Subordinate Lien Public Utility Revenue Bonds, Series 2003: 5,000 5.125%, 10/01/24 - FGIC Insured 10/13 at 100.00 AAA 5,233,150 5,000 5.125%, 10/01/25 - FGIC Insured 10/13 at 100.00 AAA 5,219,900 ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 7.5% (4.9% OF TOTAL INVESTMENTS) 3,445 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AAA 3,597,269 Series 2005, 5.000%, 10/01/24 - MBIA Insured 10,355 Florida Board of Education, Lottery Revenue Bonds, 7/15 at 101.00 AAA 10,937,572 Series 2005A, 5.000%, 7/01/22 - AMBAC Insured 6,020 Board of Regents, Florida State University, Housing Facility 5/15 at 101.00 AAA 6,267,121 Revenue Bonds, Series 2005A, 5.000%, 5/01/27 - MBIA Insured 1,000 Hillsborough County School Board, Florida, Certificates of 7/15 at 100.00 AAA 1,037,590 Participation, Master Lease Program, Series 2005A, 5.000%, 7/01/26 - MBIA Insured Indian Trace Development District, Florida, Water Management Special Benefit Assessment Bonds, Series 2005: 645 5.000%, 5/01/25 - MBIA Insured 5/15 at 102.00 Aaa 676,366 1,830 5.000%, 5/01/27 - MBIA Insured 5/15 at 102.00 Aaa 1,910,612 4,425 Jacksonville Economic Development Commission, Florida, 11/12 at 100.00 AAA 4,761,433 Healthcare Facilities Revenue Bonds, Mayo Clinic, Series 2001C, 5.500%, 11/15/36 - MBIA Insured 1,505 Lee County, Florida, Transportation Facilities Revenue Bonds, 10/14 at 100.00 AAA 1,581,725 Series 2004B, 5.000%, 10/01/21 - AMBAC Insured 2,000 Marco Island, Florida, Water Utility System Revenue Bonds, 10/13 at 100.00 AAA 2,070,620 Series 2003, 5.000%, 10/01/27 - MBIA Insured 35,920 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA 37,269,514 International Airport, Series 2002, 5.375%, 10/01/32 (Alternative Minimum Tax) - FGIC Insured 2,150 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA 2,190,377 International Airport, Series 2002A, 5.125%, 10/01/35 (Alternative Minimum Tax) - FSA Insured 5,320 Miami-Dade County, Florida, Public Facilities Revenue Bonds, 6/15 at 100.00 AAA 5,504,072 Jackson Health System, Series 2005B, 5.000%, 6/01/25 - MBIA Insured Northern Palm Beach County Improvement District, Florida, Revenue Bonds, Water Control and Improvement Development Unit 9B, Series 2005: 1,290 5.000%, 8/01/23 - MBIA Insured 8/15 at 102.00 AAA 1,359,725 2,145 5.000%, 8/01/29 - MBIA Insured 8/15 at 102.00 AAA 2,234,940 Ocala, Florida, Utility System Revenue Bonds, Series 2005B: 1,025 5.250%, 10/01/24 - FGIC Insured 10/15 at 100.00 Aaa 1,103,331 2,590 5.000%, 10/01/27 - FGIC Insured 10/15 at 100.00 Aaa 2,689,430 2,320 Osceola County, Florida, Transportation Revenue Bonds, 4/14 at 100.00 Aaa 2,422,753 Osceola Parkway, Series 2004, 5.000%, 4/01/23 - MBIA Insured Plantation, Florida, Non-Ad Valorem Revenue Refunding and Improvement Bonds, Series 2003: 2,010 5.000%, 8/15/16 - FSA Insured 8/13 at 100.00 Aaa 2,134,962 2,110 5.000%, 8/15/17 - FSA Insured 8/13 at 100.00 Aaa 2,236,262 2,225 5.000%, 8/15/18 -FSA Insured 8/13 at 100.00 Aaa 2,350,690 32 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 0.6% (0.3% OF TOTAL INVESTMENTS) $ 1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 11/14 at 100.00 AAA $ 1,045,330 Series 2004, 5.000%, 11/01/22 - FSA Insured 1,520 College Park Business and Industrial Development Authority, 9/14 at 102.00 AAA 1,652,848 Georgia, Revenue Bonds, Public Safety Project, Series 2004, 5.250%, 9/01/23 - MBIA Insured Fulton County Development Authority, Georgia, Revenue Bonds, Georgia Tech Molecular Science Building, Series 2004: 1,695 5.250%, 5/01/19 - MBIA Insured 5/14 at 100.00 AAA 1,825,515 1,135 5.250%, 5/01/20 - MBIA Insured 5/14 at 100.00 AAA 1,221,555 Glynn-Brunswick Memorial Hospital Authority, Georgia, Revenue Bonds, Southeast Georgia Health Systems, Series 1996: 640 5.250%, 8/01/13 (Pre-refunded to 8/01/06) - MBIA Insured 8/06 at 102.00 AAA 662,950 1,250 5.250%, 8/01/13 - MBIA Insured 8/06 at 102.00 AAA 1,292,700 ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 3.2% (2.1% OF TOTAL INVESTMENTS) Hawaii, General Obligation Bonds, Series 2005DF: 10,000 5.000%, 7/01/24 (DD, settling 11/03/05) - AMBAC Insured 7/15 at 100.00 AAA 10,455,700 5,000 5.000%, 7/01/25 - AMBAC Insured 7/15 at 100.00 AAA 5,219,850 24,250 Hawaii Department of Budget and Finance, Special Purpose 5/06 at 101.00 AAA 24,800,960 Revenue Bonds, Hawaiian Electric Company Inc., Series 1996A, 6.200%, 5/01/26 (Alternative Minimum Tax) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.2% (0.1% OF TOTAL INVESTMENTS) 730 Idaho Housing Agency, Single Family Mortgage Senior Bonds, No Opt. Call Aa1 744,739 Series 1994B-1, 6.750%, 7/01/22 660 Idaho Housing Agency, Single Family Mortgage Senior Bonds, No Opt. Call Aa1 674,348 Series 1994B-2, 6.900%, 7/01/26 (Alternative Minimum Tax) 695 Idaho Housing Agency, Single Family Mortgage Senior Bonds, 1/06 at 101.00 Aaa 702,610 Series 1995B, 6.600%, 7/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 5.4% (3.6% OF TOTAL INVESTMENTS) 1,050 Bedford Park, Illinois, General Obligation Bonds, Series 2004A, 12/14 at 100.00 AAA 1,133,192 5.250%, 12/15/20 - FSA Insured Chicago, Illinois, Second Lien Passenger Facility Charge Revenue Refunding Bonds, O'Hare International Airport, Series 2001E: 4,615 5.500%, 1/01/17 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 4,896,838 4,870 5.500%, 1/01/18 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 5,150,025 2,635 Eastern Illinois University, Auxiliary Facilities System Revenue 4/06 at 82.25 AAA 2,136,774 Bonds, Series 1989, 0.000%, 10/01/09 - MBIA Insured 10,000 Illinois Development Finance Authority, Revenue Bonds, 5/08 at 101.00 AAA 10,508,400 Provena Health, Series 1998A, 5.500%, 5/15/21 - MBIA Insured 2,095 Illinois Educational Facilities Authority, Revenue Bonds, 12/07 at 100.00 Aaa 2,188,186 Robert Morris College, Series 2000, 5.800%, 6/01/30 - MBIA Insured 7,000 Illinois Health Facilities Authority, Revenue Bonds, Hospital 6/08 at 101.00 Aaa 7,195,090 Sisters Services Inc. Obligated Group, Series 1998A, 5.000%, 6/01/18 - MBIA Insured 4,500 Illinois Health Facilities Authority, Revenue Bonds, Alexian 1/09 at 101.00 AAA 4,755,375 Brothers Health System, Series 1999, 5.000%, 1/01/19 (Pre-refunded to 1/01/09) - FSA Insured 22,410 Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AAA 23,224,604 Series 2002, 5.125%, 2/01/27 - FGIC Insured Schaumburg, Illinois, General Obligation Bonds, Series 2004B: 4,260 5.000%, 12/01/22 - FGIC Insured 12/14 at 100.00 AAA 4,447,909 2,365 5.000%, 12/01/23 - FGIC Insured 12/14 at 100.00 AAA 2,463,928 ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.1% (2.0% OF TOTAL INVESTMENTS) 2,350 Cloverdale Multi-School Building Corporation, Putnam and 7/15 at 100.00 AAA 2,440,475 Owen Counties, Indiana, First Mortgage Bonds, Series 2005, 5.000%, 7/15/24 - MBIA Insured 2,030 Decatur Township-Marion County Multi-School Building 7/13 at 100.00 AAA 2,126,303 Corporation, Indiana, First Mortgage Bonds, Series 2003, 5.000%, 7/15/20 - FGIC Insured 3,250 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 3,404,668 Waterworks Project, Series 2002A, 5.250%, 7/01/33 - MBIA Insured 33 Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued) Portfolio of INVESTMENTS October 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ INDIANA (continued) $ 20,000 Indianapolis Local Public Improvement Bond Bank, Indiana, No Opt. Call AAA $ 6,559,000 Series 1999E, 0.000%, 2/01/28 - AMBAC Insured 1,340 Monroe-Gregg Grade School Building Corporation, Morgan 1/14 at 100.00 AAA 1,382,210 County, Indiana, First Mortgage Bonds, Series 2004, 5.000%, 1/15/25 - FSA Insured Noblesville Redevelopment Authority, Indiana, Economic Development Lease Rental Bonds, Exit 10 Project, Series 2003: 3,110 5.000%, 1/15/21 - AMBAC Insured 7/13 at 100.00 AAA 3,227,527 5,000 5.000%, 1/15/28 - AMBAC Insured 7/13 at 100.00 AAA 5,133,100 10,000 Purdue University, Indiana, Student Fee Bonds, Series 2002O, 1/12 at 100.00 AAA 10,467,700 5.000%, 7/01/19 - MBIA Insured 3,705 Whitley County Middle School Building Corporation, 7/13 at 100.00 AAA 3,928,226 Columbia City, Indiana, First Mortgage Bonds, Series 2003, 5.000%, 7/15/16 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.7% (0.4% OF TOTAL INVESTMENTS) 1,055 Butler County Unified School District 394, Kansas, General 9/14 at 100.00 AAA 1,113,109 Obligation Bonds, Series 2004, 5.000%, 9/01/20 - FSA Insured 2,055 Kansas Turnpike Authority, Revenue Bonds, Series 2004A-2, 9/14 at 101.00 AAA 2,166,813 5.000%, 9/01/23 - FSA Insured 5,000 University of Kansas Hospital Authority, Health Facilities 9/09 at 100.00 AAA 5,320,200 Revenue Bonds, KU Health System, Series 1999A, 5.650%, 9/01/29 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.8% (1.2% OF TOTAL INVESTMENTS) 3,870 Kenton County School District Finance Corporation, Kentucky, 6/14 at 100.00 Aaa 4,066,828 School Building Revenue Bonds, Series 2004, 5.000%, 6/01/20 - MBIA Insured 3,770 Kentucky Turnpike Authority, Economic Development Road 7/15 at 100.00 AAA 3,941,799 Revenue Bonds, Revitalization Project, Series 2005B, 5.000%, 7/01/24 - AMBAC Insured 12,980 Louisville and Jefferson County Metropolitan Sewer District, 11/11 at 101.00 AAA 14,058,508 Kentucky, Sewer and Drainage System Revenue Bonds, Series 2001A, 5.500%, 5/15/34 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 2.4% (1.6% OF TOTAL INVESTMENTS) 5,000 De Soto Parish, Louisiana, Pollution Control Revenue Refunding 9/09 at 102.00 AAA 5,471,950 Bonds, Cleco Utility Group Inc. Project, Series 1999, 5.875%, 9/01/29 - AMBAC Insured 3,025 Lafayette City and Parish, Louisiana, Utilities Revenue Bonds, 11/14 at 100.00 AAA 3,204,020 Series 2004, 5.250%, 11/01/22 - MBIA Insured 1,640 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 AAA 1,714,194 Rouge General Hospital, Series 2004, 5.250%, 7/01/24 - MBIA Insured Louisiana, Gasoline and Fuels Tax Revenue Bonds, Series 2005A: 2,400 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AAA 2,476,008 4,415 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AAA 4,554,823 5,000 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AAA 5,154,450 6,895 Orleans Levee District, Louisiana, Levee District General 12/05 at 103.00 AAA 7,109,848 Obligation Bonds, Series 1986, 5.950%, 11/01/15 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 0.2% (0.2% OF TOTAL INVESTMENTS) 3,000 Maine Health and Higher Educational Facilities Authority, 7/13 at 100.00 AAA 3,081,480 Revenue Bonds, Series 2003B, 5.000%, 7/01/28 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 4.6% (3.0% OF TOTAL INVESTMENTS) 22,500 Massachusetts Development Finance Authority, Revenue 1/12 at 101.00 AAA 23,869,125 Bonds, WGBH Educational Foundation, Series 2002A, 5.375%, 1/01/42 - AMBAC Insured 1,105 Massachusetts Housing Finance Agency, Housing Revenue 12/05 at 102.00 AAA 1,130,006 Refunding Bonds, Series 1995A, 6.100%, 12/01/16 (Pre-refunded to 12/01/05) - MBIA Insured 11,000 Massachusetts School Building Authority, Dedicated Sales 8/15 at 100.00 AAA 11,533,060 Tax Revenue Bonds, Series 2005A, 5.000%, 8/15/23 - FSA Insured 15,000 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 AAA 16,278,150 Bonds, Series 2004, 5.250%, 1/01/23 (Pre-refunded to 1/01/14) - FGIC Insured 34 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS (continued) University of Massachusetts Building Authority, Senior Lien Project Revenue Bonds, Series 2004-1: $ 1,500 5.375%, 11/01/20 - AMBAC Insured 11/14 at 100.00 AAA $ 1,632,720 2,500 5.375%, 11/01/21 - AMBAC Insured 11/14 at 100.00 AAA 2,719,250 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 7.9% (5.2% OF TOTAL INVESTMENTS) 6,000 Detroit, Michigan, General Obligation Bonds, Series 2001A-1, 10/11 at 100.00 AAA 6,491,340 5.375%, 4/01/18 - MBIA Insured 5,490 Detroit City School District, Wayne County, Michigan, No Opt. Call AAA 6,654,264 Unlimited Tax School Building and Site Improvement Bonds, Series 2001A, 6.000%, 5/01/29 - FSA Insured Detroit, Michigan, Sewerage Disposal System Revenue Bonds, Series 1999A: 15,825 5.750%, 7/01/26 (Pre-refunded to 1/01/10) - FGIC Insured 1/10 at 101.00 AAA 17,359,550 20,000 5.875%, 7/01/27 (Pre-refunded to 1/01/10) - FGIC Insured 1/10 at 101.00 AAA 22,015,200 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 1997A: 1,280 5.000%, 7/01/27 (Pre-refunded to 7/01/07) - MBIA Insured 7/07 at 101.00 AAA 1,330,778 7,420 5.000%, 7/01/27 - MBIA Insured 7/07 at 101.00 AAA 7,630,580 8,000 Gaylord Community Schools, Otsego and Antrim Counties, 5/07 at 37.75 AAA 2,875,600 Michigan, School Building and Site Refunding Bonds, Series 1992, 0.000%, 5/01/21 (Pre-refunded to 5/01/07) - MBIA Insured 1,875 Grand Ledge Public Schools, Eaton, Clinton and Ionia Counties, 5/15 at 100.00 AAA 1,962,319 Michigan, General Obligation Bonds, Series 2005, 5.000%, 5/01/23 - FGIC Insured Grand Rapids Community College, Kent County, Michigan, General Obligation Refunding Bonds, Series 2003: 1,050 5.250%, 5/01/17 - AMBAC Insured 5/13 at 100.00 AAA 1,130,094 1,085 5.250%, 5/01/20 - AMBAC Insured 5/13 at 100.00 AAA 1,165,594 Michigan State Building Authority, Revenue Bonds, Facilities Program, Series 2005II: 1,600 5.000%, 10/15/21 - AMBAC Insured 10/15 at 100.00 AAA 1,686,592 1,355 5.000%, 10/15/22 - AMBAC Insured 10/15 at 100.00 AAA 1,423,848 27,000 Okemos Public School District, Ingham County, Michigan, 5/06 at 34.54 AAA 9,187,290 School Building and Site Bonds, Series 1991I, 0.000%, 5/01/21 (Pre-refunded to 5/01/06) - MBIA Insured 10,000 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 10,680,300 Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.250%, 12/01/25 - MBIA Insured 6,850 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 7,192,226 Metropolitan Wayne County Airport, Series 1998A, 5.375%, 12/01/15 (Alternative Minimum Tax) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.1% (0.7% OF TOTAL INVESTMENTS) 13,020 St. Paul Housing and Redevelopment Authority, Minnesota, 12/11 at 102.00 Aaa 13,858,358 GNMA Collateralized Multifamily Housing Revenue Bonds, Marian Center Project, Series 2001A, 6.450%, 6/20/43 ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 0.2% (0.1% OF TOTAL INVESTMENTS) Nebraska Public Power District, General Revenue Bonds, Series 2005A: 1,000 5.000%, 1/01/24 - FSA Insured 1/15 at 100.00 AAA 1,045,180 1,000 5.000%, 1/01/25 - FSA Insured 1/15 at 100.00 AAA 1,044,420 ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 8.2% (5.4% OF TOTAL INVESTMENTS) 12,105 Clark County, Nevada, General Obligation Bank Bonds, 12/12 at 100.00 AAA 12,368,768 Southern Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32 - MBIA Insured 7,370 Clark County, Nevada, Subordinate Lien Airport Revenue 7/14 at 100.00 AAA 7,712,189 Bonds, Series 2004A-2, 5.125%, 7/01/25 - FGIC Insured Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000: 15,000 5.625%, 1/01/34 - AMBAC Insured 1/10 at 102.00 AAA 16,264,950 13,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 13,434,460 315 Nevada Housing Division, Single Family Mortgage Bonds, 4/06 at 100.00 Aa2 317,347 Senior Series 1994B-1, 6.700%, 10/01/17 240 Nevada Housing Division, Single Family Mortgage Bonds, 4/06 at 100.00 Aa2 240,583 Senior Series 1994B-2, 6.950%, 10/01/26 (Alternative Minimum Tax) 40,285 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 42,538,140 Series 2002, 5.375%, 6/01/32 - FGIC Insured 35 Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued) Portfolio of INVESTMENTS October 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEVADA (continued) $ 10,000 Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, 6/12 at 100.00 AAA $ 10,357,500 Reno Transportation Rail Access Corridor Project, Series 2002, 5.125%, 6/01/27 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 2.3% (1.5% OF TOTAL INVESTMENTS) Essex County Improvement Authority, New Jersey, Guaranteed Revenue Bonds, Project Consolidation, Series 2004: 2,000 5.125%, 10/01/21 - MBIA Insured 10/14 at 100.00 Aaa 2,123,340 2,250 5.125%, 10/01/22 - MBIA Insured 10/14 at 100.00 Aaa 2,385,338 New Jersey Economic Development Authority, Revenue Bonds, Motor Vehicle Surcharge, Series 2004A: 3,850 5.000%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 4,041,615 3,850 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 4,033,106 2,120 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 2,233,356 Ramapo College, Series 2004E, 5.000%, 7/01/21 - FGIC Insured New Jersey Turnpike Authority, Revenue Bonds, Series 2003A: 8,250 5.000%, 1/01/19 - FGIC Insured 7/13 at 100.00 AAA 8,675,535 2,000 5.000%, 1/01/23 - FSA Insured 7/13 at 100.00 AAA 2,082,540 2,795 Rutgers State University, New Jersey, Revenue Bonds, 5/14 at 100.00 AAA 2,936,120 Series 2004E, 5.000%, 5/01/22 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 0.3% (0.2% OF TOTAL INVESTMENTS) 3,660 San Juan County, New Mexico, Subordinate Gross Receipts 6/15 at 100.00 AAA 3,794,212 Tax Revenue Bonds, Series 2005, 5.000%, 6/15/25 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 7.1% (4.7% OF TOTAL INVESTMENTS) 8,685 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 9,171,186 General Revenue Bonds, Series 1998A, 5.300%, 12/01/19 - FSA Insured Metropolitan Transportation Authority, New York, State Service Contract Refunding Bonds, Series 2002A: 2,500 5.000%, 7/01/21 - FGIC Insured 7/12 at 100.00 AAA 2,616,425 5,000 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00 AAA 5,196,600 10,525 New York City, New York, General Obligation Bonds, 4/15 at 100.00 AAA 10,937,264 Fiscal Series 2005M, 5.000%, 4/01/26 - FGIC Insured 5,000 New York City, New York, General Obligation Bonds, 9/15 at 100.00 AAA 5,243,200 Fiscal Series 2006F-1, 5.000%, 9/01/21 - AMBAC Insured 1,500 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA 1,562,145 Water and Sewerage System Revenue Bonds, Fiscal Series 2005C, 5.000%, 6/15/25 - MBIA Insured 1,000 Dormitory Authority of the State of New York, Revenue 2/15 at 100.00 AAA 1,042,570 Bonds, Mental Health Services Facilities Improvements, Series 2005D, 5.000%, 2/15/23 - FGIC Insured 1,880 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,959,750 Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/23 - FGIC Insured 5,000 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 5,214,400 Series 2005F, 5.000%, 1/01/26 - AMBAC Insured 3,000 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 3,031,110 Series 2005G, 4.750%, 1/01/29 - FSA Insured New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Second Generation, Series 2005B: 3,770 5.000%, 4/01/21 - AMBAC Insured 10/15 at 100.00 AAA 3,976,445 7,000 5.000%, 4/01/22 - AMBAC Insured 10/15 at 100.00 AAA 7,360,220 3,500 New York State Thruway Authority, State Personal Income 3/15 at 100.00 AAA 3,710,735 Tax Revenue Bonds, Series 2005A, 5.000%, 3/15/19 - FSA Insured New York State Urban Development Corporation, State Personal Income Tax Revenue Bonds, Series 2004A-1: 1,000 5.000%, 3/15/23 - FGIC Insured 3/14 at 100.00 AAA 1,041,230 5,000 5.000%, 3/15/25 - FGIC Insured 3/14 at 100.00 AAA 5,195,500 36 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) New York City Sales Tax Asset Receivable Corporation, New York, Dedicated Revenue Bonds, Local Government Assistance Corporation, Series 2004A: $ 4,825 5.000%, 10/15/24 - MBIA Insured 10/14 at 100.00 AAA $ 5,053,657 1,665 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 1,741,390 15,000 Triborough Bridge and Tunnel Authority, New York, 11/12 at 100.00 AAA 15,397,800 Subordinate Lien General Purpose Revenue Refunding Bonds, Series 2002E, 5.000%, 11/15/32 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 1.4% (0.9% OF TOTAL INVESTMENTS) Mooresville, North Carolina, Enterprise System Revenue Bonds, Series 2004: 2,115 5.000%, 5/01/22 - FGIC Insured 5/14 at 100.00 AAA 2,214,109 2,575 5.000%, 5/01/26 - FGIC Insured 5/14 at 100.00 AAA 2,678,953 5,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 5,353,650 Revenue Bonds, Series 2003A, 5.250%, 1/01/16 - FSA Insured Raleigh Durham Airport Authority, North Carolina, Airport Revenue Bonds, Series 2005A: 3,205 5.000%, 5/01/23 - AMBAC Insured 5/15 at 100.00 Aaa 3,349,193 3,295 5.000%, 5/01/24 - AMBAC Insured 5/15 at 100.00 Aaa 3,435,466 ------------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 0.8% (0.6% OF TOTAL INVESTMENTS) Grand Forks, North Dakota, Sales Tax Revenue Bonds, Alerus Project, Series 2005A: 2,195 5.000%, 12/15/22 - MBIA Insured 12/15 at 100.00 Aaa 2,309,799 1,355 5.000%, 12/15/23 - MBIA Insured 12/15 at 100.00 Aaa 1,422,465 3,000 5.000%, 12/15/24 - MBIA Insured 12/15 at 100.00 Aaa 3,141,870 3,600 North Dakota Water Commission, Water Development and 8/15 at 100.00 AAA 3,759,336 Management Program Bonds, Series 2005B, 5.000%, 8/01/25 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 2.8% (1.9% OF TOTAL INVESTMENTS) 2,650 Cleveland State University, Ohio, General Receipts Bonds, 6/14 at 100.00 AAA 2,831,949 Series 2004, 5.250%, 6/01/24 - FGIC Insured 2,000 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 2,143,880 Obligation Bonds, Series 2004, 5.250%, 12/01/25 - FSA Insured 2,385 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/14 at 100.00 AAA 2,476,775 Project, Series 2004A, 5.000%, 12/01/22 - AMBAC Insured 2,205 Hamilton City School District, Ohio, General Obligation Bonds, 6/15 at 100.00 Aaa 2,308,348 Series 2005, 5.000%, 12/01/24 - MBIA Insured 20,100 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica 11/09 at 101.00 AAA 21,040,077 Healthcare Obligated Group, Series 1999, 5.375%, 11/15/39 - AMBAC Insured 3,000 Ross Local School District, Butler County, Ohio, General 12/13 at 100.00 Aaa 3,101,610 Obligation Bonds, Series 2003, 5.000%, 12/01/28 - FSA Insured 1,530 Tallmadge City School District, Ohio, General Obligation 6/15 at 100.00 AAA 1,587,146 Bonds, Series 2005, 5.000%, 12/01/28 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 1.5% (1.0% OF TOTAL INVESTMENTS) 2,515 Oklahoma State University, Athletic Facilities Revenue Bonds, 8/14 at 100.00 AAA 2,593,191 Series 2004, 5.000%, 8/01/34 - AMBAC Insured 5,575 Oklahoma Housing Finance Agency, GNMA Collateralized No Opt. Call AAA 6,017,265 Single Family Mortgage Revenue Bonds, Series 1987A, 7.997%, 8/01/18 (Alternative Minimum Tax) 5,245 Oklahoma State Industries Authority, Revenue Bonds, 2/11 at 100.00 Aaa 5,534,576 Oklahoma Medical Research Foundation, Series 2001, 5.250%, 2/01/21 - AMBAC Insured 4,880 University of Oklahoma, Student Housing Revenue Bonds, 7/14 at 100.00 Aaa 5,112,093 Series 2004, 5.000%, 7/01/22 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 0.8% (0.5% OF TOTAL INVESTMENTS) Oregon Department of Administrative Services, Certificates of Participation, Series 2005A: 2,535 5.000%, 5/01/25 - FSA Insured 5/15 at 100.00 AAA 2,635,082 2,115 5.000%, 5/01/30 - FSA Insured 5/15 at 100.00 AAA 2,178,704 37 Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued) Portfolio of INVESTMENTS October 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ OREGON (continued) $ 3,470 Oregon Department of Administrative Services, Certificates 11/15 at 100.00 AAA $ 3,693,329 of Participation, Series 2005B, 5.000%, 11/01/18 - FGIC Insured 1,470 Oregon Housing and Community Services Department, 1/06 at 102.00 Aa2 1,500,797 Single Family Mortgage Revenue Bonds, Series 1995A, 6.450%, 7/01/26 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 0.8% (0.5% OF TOTAL INVESTMENTS) 1,000 Cumberland Valley School District, Cumberland County, 11/15 at 100.00 Aaa 1,057,820 Pennsylvania, General Obligation Bonds, Series 2005, 5.000%, 11/15/20 - FSA Insured 1,800 Pennsylvania Higher Educational Facilities Authority, Revenue 5/15 at 100.00 AAA 1,869,660 Bonds, Drexel University, Series 2005A, 5.000%, 5/01/28 - MBIA Insured 6,335 Radnor Township School District, Delaware County, 8/15 at 100.00 Aaa 6,560,273 Pennsylvania, General Obligation Bonds, Series 2005B, 5.000%, 2/15/30 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.4% (0.2% OF TOTAL INVESTMENTS) 2,000 Puerto Rico Highway and Transportation Authority, Highway 7/13 at 100.00 AAA 2,166,300 Revenue Bonds, Series 2003G, 5.250%, 7/01/19 - FGIC Insured 2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 2,595,975 Series 2005RR, 5.000%, 7/01/30 - XLCA Insured ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 2.1% (1.4% OF TOTAL INVESTMENTS) 2,195 Providence Housing Development Corporation, Rhode Island, 1/06 at 101.00 AAA 2,219,847 FHA-Insured Section 8 Assisted Mortgage Revenue Refunding Bonds, Barbara Jordan Apartments, Series 1994A, 6.750%, 7/01/25 - MBIA Insured 20,475 Rhode Island Depositors Economic Protection Corporation, 2/11 at 100.00 AAA 22,095,187 Special Obligation Refunding Bonds, Series 1993B, 5.250%, 8/01/21 (Pre-refunded to 2/01/11) - MBIA Insured 1,405 Rhode Island Health and Educational Building Corporation, 9/14 at 100.00 Aaa 1,536,325 Higher Education Auxiliary Enterprise Revenue Bonds, Series 2004A, 5.500%, 9/15/24 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 3.9% (2.6% OF TOTAL INVESTMENTS) 10,000 Beaufort County, South Carolina, Tax Increment Bonds, 12/12 at 100.00 AAA 10,309,200 New River Redevelopment Project, Series 2002, 5.000%, 6/01/27 - MBIA Insured Medical University Hospital Authority, South Carolina, FHA-Insured Mortgage Revenue Bonds, Series 2004A: 2,000 5.250%, 8/15/22 - MBIA Insured 8/14 at 100.00 AAA 2,122,660 2,105 5.250%, 8/15/23 - MBIA Insured 8/14 at 100.00 AAA 2,229,384 Piedmont Municipal Power Agency, South Carolina, Electric Revenue Bonds, Series 1988A: 9,190 0.000%, 1/01/13 (Pre-refunded to 7/01/09) - AMBAC Insured 7/09 at 76.63 AAA 6,167,869 4,855 0.000%, 1/01/13 - AMBAC Insured No Opt. Call AAA 3,454,672 0.000%, 1/01/13 - AMBAC Insured No Opt. Call AAA 5,664,040 8,000 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 AAA 8,462,000 Industrial Revenue Bonds, South Carolina Electric and Gas Company, Series 2002A, 5.200%, 11/01/27 - AMBAC Insured 10,000 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 AAA 10,472,700 Industrial Revenue Bonds, South Carolina Electric and Gas Company, Series 2002B, 5.450%, 11/01/32 (Alternative Minimum Tax) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 0.5% (0.3% OF TOTAL INVESTMENTS) 6,455 Memphis-Shelby County Airport Authority, Tennessee, 3/11 at 100.00 AAA 6,847,077 Airport Revenue Bonds, Series 2001A, 5.500%, 3/01/18 (Alternative Minimum Tax) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 16.6% (10.9% OF TOTAL INVESTMENTS) Austin, Texas, Tax and Revenue Solid Waste Certificates of Obligation, Series 2002: 2,150 5.375%, 9/01/18 (Pre-refunded to 9/01/12) - MBIA Insured 9/12 at 100.00 AAA 2,358,507 2,250 5.375%, 9/01/19 (Pre-refunded to 9/01/12) - MBIA Insured 9/12 at 100.00 AAA 2,468,205 22,650 Brazos River Authority, Texas, Revenue Refunding Bonds, 5/08 at 102.00 AAA 23,624,856 Houston Industries Inc., Series 1998C, 5.125%, 5/01/19 (Optional put 5/01/08) - AMBAC Insured 805 Capital Area Housing Finance Corporation, Texas, 4/12 at 106.00 AAA 818,415 FNMA Backed Single Family Mortgage Revenue Refunding Bonds, Series 2002A-2, 6.300%, 4/01/35 (Alternative Minimum Tax) - AMBAC Insured 38 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 AAA $ 13,489,625 Bonds, Series 2000A, 6.125%, 11/01/35 (Alternative Minimum Tax) - FGIC Insured 25,000 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 AAA 25,801,250 Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 - MBIA Insured Harris County, Texas, Toll Road Senior Lien Revenue Bonds, Series 1989: 9,000 0.000%, 8/15/18 (Pre-refunded to 8/15/09) - AMBAC Insured 8/09 at 53.84 AAA 4,223,880 39,000 0.000%, 8/15/19 (Pre-refunded to 8/15/09) - AMBAC Insured 8/09 at 50.26 AAA 17,086,290 7,280 0.000%, 8/15/20 (Pre-refunded to 8/15/09) - AMBAC Insured 8/09 at 46.91 AAA 2,977,447 5,085 0.000%, 8/15/21 (Pre-refunded to 8/15/09) - AMBAC Insured 8/09 at 43.80 AAA 1,941,402 6,570 Houston, Texas, General Obligation Public Improvement Bonds, 3/11 at 100.00 AAA 7,131,669 Series 2001A, 5.375%, 3/01/19 (Pre-refunded to 3/01/11) - FSA Insured 4,170 Houston, Texas, Subordinate Lien Airport System Revenue 7/10 at 100.00 AAA 4,451,934 Bonds, Series 2000B, 5.500%, 7/01/30 - FSA Insured 17,500 Houston, Texas, Hotel Occupancy Tax and Special Revenue 9/11 at 100.00 AAA 18,143,825 Bonds, Convention and Entertainment Project, Series 2001B, 5.250%, 9/01/33 - AMBAC Insured 4,671 Houston Housing Finance Corporation, Texas, GNMA 9/11 at 105.00 Aaa 4,893,153 Collateralized Mortgage Multifamily Housing Revenue Bonds, RRG Apartments Project, Series 2001, 6.350%, 3/20/42 Houston, Texas, First Lien Combined Utility System Revenue Bonds, Series 2004A: 4,000 5.250%, 5/15/24 - FGIC Insured 5/14 at 100.00 AAA 4,252,960 5,000 5.250%, 5/15/25 - MBIA Insured 5/14 at 100.00 AAA 5,308,850 23,865 Jefferson County Health Facilities Development Corporation, 8/11 at 100.00 AAA 24,913,151 Texas, FHA-Insured Mortgage Revenue Bonds, Baptist Hospital of Southeast Texas, Series 2001, 5.500%, 8/15/41 - AMBAC Insured 8,205 Lower Colorado River Authority, Texas, Revenue Refunding 5/11 at 100.00 AAA 8,537,795 and Improvement Bonds, Series 2001A, 5.000%, 5/15/21 - MBIA Insured Port of Houston Authority, Harris County, Texas, General Obligation Port Improvement Bonds, Series 2001B: 3,205 5.500%, 10/01/18 (Alternative Minimum Tax) - FGIC Insured 10/11 at 100.00 AAA 3,382,172 3,375 5.500%, 10/01/19 (Alternative Minimum Tax) - FGIC Insured 10/11 at 100.00 AAA 3,561,030 7,205 San Antonio, Texas, Airport System Improvement Revenue 7/11 at 101.00 AAA 7,651,494 Bonds, Series 2001, 5.375%, 7/01/15 (Alternative Minimum Tax) - FGIC Insured Tarrant County Health Facilities Development Corporation, Texas, Revenue Bonds, Texas Health Resources System, Series 1997A: 2,900 5.250%, 2/15/22 - MBIA Insured 2/08 at 102.00 AAA 3,018,407 6,820 5.000%, 2/15/26 - MBIA Insured 2/08 at 101.00 AAA 6,914,048 7,410 Texas Department of Housing and Community Affairs, 9/06 at 102.00 AAA 7,657,865 Single Family Mortgage Revenue Bonds, Series 1996D, 6.250%, 9/01/28 (Alternative Minimum Tax) - MBIA Insured 1,910 Waco, Texas, Combined Tax and Revenue Certificates 2/14 at 100.00 AAA 1,990,449 of Obligation, Series 2004, 5.000%, 2/01/21 - MBIA Insured 1,840 Ysleta Independent School District Public Facility Corporation, 11/09 at 100.00 AAA 1,939,783 Texas, Lease Revenue Refunding Bonds, Series 2001, 5.375%, 11/15/24 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.3% (0.2% OF TOTAL INVESTMENTS) 2,000 Clearfield City, Utah, Sales Tax Revenue Bonds, Series 2003, 7/13 at 100.00 AAA 2,062,160 5.000%, 7/01/28 - FGIC Insured 1,810 Utah Housing Finance Agency, FHA-Insured Section 8 Assisted 1/06 at 100.00 AA 1,812,878 Multifamily Housing Revenue Bonds, Series 1992A, 7.400%, 7/01/24 ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 2.6% (1.7% OF TOTAL INVESTMENTS) 8,000 Greater Richmond Convention Center Authority, Virginia, 6/15 at 100.00 AAA 8,255,520 Hotel Tax Revenue Bonds, Series 2005, 5.000%, 6/15/30 - MBIA Insured 1,035 Loudoun County Industrial Development Authority, Virginia, 6/14 at 100.00 AAA 1,110,948 Lease Revenue Bonds, Public Safety Facilities, Series 2003A, 5.250%, 12/15/20 - FSA Insured 4,840 Metropolitan Washington D.C. Airports Authority, Airport 10/11 at 101.00 AAA 5,137,370 System Revenue Bonds, Series 2001A, 5.500%, 10/01/19 (Alternative Minimum Tax) - MBIA Insured 39 Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued) Portfolio of INVESTMENTS October 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA (continued) $ 4,265 Metropolitan Washington D.C. Airports Authority, Airport 10/14 at 100.00 AAA $ 4,456,712 System Revenue Bonds, Series 2004A, 5.000%, 10/01/20 - MBIA Insured 3,000 Upper Occoquan Sewerage Authority, Virginia, Regional Sewer 7/15 at 100.00 AAA 3,170,580 Revenue Bonds, Series 2005, 5.000%, 7/01/21 - FSA Insured 10,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 10,236,800 Mortgage Bonds, Series 2001H-1, 5.375%, 7/01/36 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 1.2% (0.8% OF TOTAL INVESTMENTS) 2,500 Grant County Public Utility District 2, Washington, Revenue 1/15 at 100.00 AAA 2,574,900 Bonds, Wanapum Hydroelectric Development, Series 2005A, 5.000%, 1/01/29 - FGIC Insured 3,500 King County School District 401, Highline, Washington, 12/14 at 100.00 AAA 3,633,140 General Obligation Bonds, Series 2004, 5.000%, 10/01/24 - FGIC Insured 3,195 Kitsap County, Washington, Limited Tax General Obligation 7/10 at 100.00 AAA 3,469,896 Bonds, Series 2000, 5.500%, 7/01/25 (Pre-refunded to 7/01/10) - AMBAC Insured 4,250 Snohomish County Public Utility District 1, Washington, 1/06 at 100.00 AAA 5,016,403 Generation System Revenue Bonds, Series 1989, 6.650%, 1/01/16 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 0.8% (0.5% OF TOTAL INVESTMENTS) 10,000 Harrison County Commission, West Virginia, Solid Waste 11/05 at 100.00 AAA 10,157,600 Disposal Revenue Bonds, West Penn Power Company - Harrison Station, Series 1993B, 6.300%, 5/01/23 (Alternative Minimum Tax) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 4.1% (2.7% OF TOTAL INVESTMENTS) 1,675 Wisconsin Public Power Incorporated System, Power 7/15 at 100.00 AAA 1,724,731 Supply System Revenue Bonds, Series 2005A, 5.000%, 7/01/30 (WI, settling 11/02/05) - AMBAC Insured 680 Wisconsin Housing and Economic Development Authority, 1/06 at 100.00 AAA 681,149 Housing Revenue Bonds, Series 1992A, 6.850%, 11/01/12 - MBIA Insured 2,890 Wisconsin, General Obligation Bonds, Series 2004-3, 5/14 at 100.00 AAA 3,103,971 5.250%, 5/01/20 - FGIC Insured 10,945 Wisconsin, General Obligation Bonds, Series 2004-4, 5/14 at 100.00 AAA 11,489,623 5.000%, 5/01/20 - MBIA Insured 15,000 Wisconsin Health and Educational Facilities Authority, 2/07 at 102.00 AAA 15,664,650 Revenue Bonds, Marshfield Clinic, Series 1997, 5.750%, 2/15/27 - MBIA Insured 18,000 Wisconsin Health and Educational Facilities Authority, 8/07 at 102.00 AAA 18,826,380 Revenue Bonds, Aurora Healthcare Inc., Series 1997, 5.250%, 8/15/17 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 1,982,596 Total Long-Term Investments (cost $1,810,645,575) - 152.4% 1,911,596,344 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.8% 23,041,563 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (54.2)% (680,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $1,254,637,907 ====================================================================================================================
All of the bonds in the Portfolio of Investments are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. (DD) Security purchased on a delayed delivery basis. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements. 40 Nuveen Premier Insured Municipal Income Fund, Inc. (NIF) Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 1.1% (0.7% OF TOTAL INVESTMENTS) $ 3,200 Auburn, Alabama, General Obligation Warrants, Series 2005, 8/15 at 100.00 AAA $ 3,298,176 5.000%, 8/01/30 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 2.1% (1.4% OF TOTAL INVESTMENTS) 6,185 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/15 at 100.00 AAA 6,287,795 Water System Revenue Bonds, Series 2005, 4.750%, 7/01/25 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.4% (0.9% OF TOTAL INVESTMENTS) 4,020 Northwest Community College District, Arkansas, General 5/15 at 100.00 AAA 4,214,166 Obligation Bonds, Series 2005, 5.000%, 5/15/23 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 28.7% (18.8% OF TOTAL INVESTMENTS) ABAG Finance Authority for Non-Profit Corporations, California, Insured Certificates of Participation, Children's Hospital Medical Center of Northern California, Series 1999: 6,750 5.875%, 12/01/19 - AMBAC Insured 12/09 at 101.00 AAA 7,414,740 6.000%, 12/01/29 - AMBAC Insured 12/09 at 101.00 AAA 10,993,900 1,250 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 AAA 1,329,688 Revenue Bonds, Pacific Gas and Electric Company, Series 1996A, 5.350%, 12/01/16 (Alternative Minimum Tax) - MBIA Insured 1,000 California Department of Water Resources, Water System 12/14 at 100.00 AAA 1,041,070 Revenue Bonds, Central Valley Project, Series 2005AC, 5.000%, 12/01/26 - MBIA Insured 1,005 Folsom Cordova Unified School District, Sacramento County, 10/14 at 100.00 AAA 1,045,652 California, General Obligation Bonds, School Facilities Improvement District 2, Series 2004B, 5.000%, 10/01/26 - FSA Insured 85 Kern County Housing Authority, California, GNMA Guaranteed No Opt. Call AAA 85,453 Tax-Exempt Mortgage Obligation Bonds, Series 1994A-I, 7.150%, 12/30/24 (Alternative Minimum Tax) 115 Kern County Housing Authority, California, GNMA Guaranteed No Opt. Call AAA 115,630 Tax-Exempt Mortgage Obligation Bonds, Series 1994A-III, 7.450%, 6/30/25 (Alternative Minimum Tax) 4,975 La Verne-Grand Terrace Housing Finance Agency, California, No Opt. Call AAA 6,796,745 Single Family Residential Mortgage Revenue Bonds, Series 1984A, 10.250%, 7/01/17 1,690 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 1,768,889 California, General Obligation Bonds, Series 2005A, 5.000%, 8/01/24 - FSA Insured 5,000 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 6,720,350 County, California, Revenue Refunding Bonds, Redevelopment Project 1, Series 1995, 7.400%, 8/01/25 - MBIA Insured 8,880 Pomona, California, GNMA/FHLMC Collateralized Single Family No Opt. Call AAA 11,609,268 Mortgage Revenue Refunding Bonds, Series 1990B, 7.500%, 8/01/23 10,305 San Bernardino, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 13,112,082 Program Single Family Mortgage Revenue Refunding Bonds, Series 1990A, 7.500%, 5/01/23 13,755 San Bernardino County, California, GNMA Mortgage-Backed No Opt. Call AAA 16,502,974 Securities Program Single Family Home Mortgage Revenue Bonds, Series 1988A, 8.300%, 9/01/14 (Alternative Minimum Tax) 4,300 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 AAA 4,428,613 Refunding Bonds, San Francisco International Airport, Second Series 2001, Issue 27A, 5.125%, 5/01/19 (Alternative Minimum Tax) - MBIA Insured 2,000 San Jose Redevelopment Agency, California, Tax Allocation 8/14 at 100.00 AAA 2,157,640 Bonds, Merged Area Redevelopment Project, Series 2004A, 5.250%, 8/01/19 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 7.1% (4.7% OF TOTAL INVESTMENTS) 1,500 Adams and Arapahoe Counties Joint School District 28J, 12/13 at 100.00 AAA 1,592,640 Aurora, Colorado, General Obligation Bonds, Series 2003A, 5.125%, 12/01/21 - FSA Insured 2,500 Denver City and County, Colorado, Airport System Revenue 11/12 at 100.00 AAA 2,654,450 Refunding Bonds, Series 2002E, 5.500%, 11/15/18 (Alternative Minimum Tax) - FGIC Insured 41 Nuveen Premier Insured Municipal Income Fund, Inc. (NIF) (continued) Portfolio of INVESTMENTS October 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ COLORADO (continued) $ 6,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 102.00 AAA $ 6,625,080 Bonds, Series 2000A, 5.750%, 9/01/29 - MBIA Insured 4,405 Garfield, Eagle and Pitkin Counties School District RE-1, 12/14 at 100.00 AAA 4,599,921 Roaring Fork, Colorado, General Obligation Bonds, Series 2005A, 5.000%, 12/15/24 - FSA Insured 2,065 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 2,156,376 Obligation Bonds, Series 2004, 5.000%, 12/15/24 - FSA Insured 1,390 Teller County School District RE-2, Woodland Park, Colorado, 12/14 at 100.00 AAA 1,457,679 General Obligation Bonds, Series 2004, 5.000%, 12/01/22 - MBIA Insured 1,000 University of Colorado, Enterprise System Revenue Bonds, 6/12 at 100.00 AAA 1,049,790 Series 2002A, 5.000%, 6/01/19 - FGIC Insured 1,000 University of Colorado, Enterprise System Revenue Bonds, 6/15 at 100.00 AAA 1,035,780 Series 2005, 5.000%, 6/01/30 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 4.8% (3.2% OF TOTAL INVESTMENTS) 2,285 Florida Municipal Loan Council, Revenue Bonds, Series 2005A, 2/15 at 100.00 AAA 2,383,689 5.000%, 2/01/23 - MBIA Insured 1,500 JEA, Florida, Water and Sewerage System Revenue Bonds, 10/13 at 100.00 AAA 1,580,580 Series 2004A, 5.000%, 10/01/19 - FGIC Insured 4,145 Miami, Florida, General Obligation Bonds, Series 2002, 1/12 at 100.00 AAA 4,312,997 5.000%, 1/01/22 - MBIA Insured 4,240 Reedy Creek Improvement District, Florida, Utility Revenue 10/13 at 100.00 AAA 4,584,500 Bonds, Series 2003-1, 5.250%, 10/01/17 - MBIA Insured 1,415 Taylor County, Florida, Sales Tax Revenue Bonds, Series 2005, 10/15 at 100.00 AAA 1,475,067 5.000%, 10/01/25 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 6.3% (4.1% OF TOTAL INVESTMENTS) 2,950 Atlanta, Georgia, Airport General Revenue Bonds, Series 2004G, 1/15 at 100.00 AAA 3,058,501 5.000%, 1/01/25 - FSA Insured 8,000 Fulton-DeKalb Hospital Authority, Georgia, Revenue Refunding 1/14 at 100.00 AAA 8,623,920 Certificates, Series 2003, 5.250%, 1/01/16 - FSA Insured 6,500 Medical Center Hospital Authority, Georgia, Revenue 8/09 at 102.00 AAA 7,004,790 Anticipation Certificates, Columbus Regional Healthcare System, Inc. Project, Series 1999, 5.500%, 8/01/25 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 3.8% (2.5% OF TOTAL INVESTMENTS) 8,030 Hawaii Department of Transportation, Airport System 7/10 at 101.00 AAA 8,915,950 Revenue Refunding Bonds, Series 2000B, 6.500%, 7/01/15 (Alternative Minimum Tax) - FGIC Insured 2,250 Hawaii Department of Budget and Finance, Special Purpose 1/09 at 101.00 AAA 2,420,257 Revenue Bonds, Hawaiian Electric Company Inc., Series 1999D, 6.150%, 1/01/20 (Alternative Minimum Tax) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 14.9% (9.8% OF TOTAL INVESTMENTS) 4,000 Bridgeview, Illinois, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 4,168,520 5.000%, 12/01/22 - FGIC Insured 10,000 Chicago, Illinois, General Obligation Refunding Bonds, 1/10 at 101.00 AAA 10,696,400 Series 2000D, 5.500%, 1/01/35 - FGIC Insured 8,200 Chicago Board of Education, Illinois, General Obligation Lease No Opt. Call AAA 9,339,636 Certificates, Series 1992A, 6.250%, 1/01/15 - MBIA Insured 23,110 Illinois Development Finance Authority, Local Government No Opt. Call Aaa 13,937,641 Program Revenue Bonds, Kane, Cook and DuPage Counties School District U46 - Elgin, Series 2002, 0.000%, 1/01/17 - FSA Insured 5,010 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 2,339,319 Refunding Bonds, McCormick Place Expansion Project, Series 1996A, 0.000%, 12/15/21 - MBIA Insured 3,225 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 3,813,982 McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1992A, 9.000%, 6/01/09 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 4.9% (3.2% OF TOTAL INVESTMENTS) 4,725 Decatur Township-Marion County Multi-School Building 7/13 at 100.00 AAA 4,993,664 Corporation, Indiana, First Mortgage Bonds, Series 2003, 5.000%, 7/15/17 - FGIC Insured 42 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ INDIANA (continued) Indiana University, Parking Facility Revenue Bonds, Series 2004: $ 1,015 5.250%, 11/15/19 - AMBAC Insured 11/14 at 100.00 AAA $ 1,090,110 1,060 5.250%, 11/15/20 - AMBAC Insured 11/14 at 100.00 AAA 1,137,613 1,100 5.250%, 11/15/21 - AMBAC Insured 11/14 at 100.00 AAA 1,178,837 9,255 Indianapolis Local Public Improvement Bond Bank, Indiana, No Opt. Call AAA 3,590,385 Series 1999E, 0.000%, 2/01/25 - AMBAC Insured 1,000 Metropolitan School District Steuben County K-5 Building 7/14 at 102.00 AAA 1,077,640 Corporation, Indiana, First Mortgage Bonds, Series 2003, 5.250%, 1/15/21 - FSA Insured 1,490 North Lawrence Community Schools Building Corporation, 1/14 at 100.00 AAA 1,557,706 Marion County, Indiana, First Mortgage Bonds, Series 2004, 5.000%, 7/15/19 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 1.2% (0.8% OF TOTAL INVESTMENTS) 3,345 Ames, Iowa, Hospital Revenue Refunding Bonds, Mary 6/13 at 100.00 Aaa 3,495,659 Greeley Medical Center, Series 2003, 5.000%, 6/15/17 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.4% (0.3% OF TOTAL INVESTMENTS) 1,245 Kansas Development Finance Authority, Board of Regents, 4/15 at 100.00 AAA 1,303,503 Revenue Bonds, Kansas State University Housing System, Series 2005A, 5.000%, 4/01/23 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 1.7% (1.1% OF TOTAL INVESTMENTS) 5,000 Maryland Transportation Authority, Airport Parking Revenue 3/12 at 101.00 AAA 5,174,100 Bonds, Baltimore-Washington International Airport Passenger Facility, Series 2002B, 5.125%, 3/01/21 (Alternative Minimum Tax) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 2.4% (1.6% OF TOTAL INVESTMENTS) 1,280 Massachusetts Health and Educational Facilities Authority, 8/15 at 100.00 AAA 1,338,394 Revenue Bonds, Lahey Clinic Medical Center, Series 2005C, 5.000%, 8/15/21 - FGIC Insured 4,400 Massachusetts School Building Authority, Dedicated Sales 8/15 at 100.00 AAA 4,613,224 Tax Revenue Bonds, Series 2005A, 5.000%, 8/15/23 - FSA Insured 1,000 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 AAA 1,085,210 Bonds, Series 2004, 5.250%, 1/01/21 (Pre-refunded to 1/01/14) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 3.6% (2.4% OF TOTAL INVESTMENTS) 6,500 Michigan Higher Education Student Loan Authority, Revenue No Opt. Call AAA 6,843,135 Bonds, Series 2000 XII-T, 5.300%, 9/01/10 (Alternative Minimum Tax) - AMBAC Insured 3,810 Michigan Housing Development Authority, GNMA 8/12 at 102.00 Aaa 3,942,626 Collateralized Limited Obligation Multifamily Housing Revenue Bonds, Cranbrook Apartments, Series 2001A, 5.500%, 2/20/43 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.8% (1.2% OF TOTAL INVESTMENTS) 4,860 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 5,219,154 Minnesota, Airport Revenue Bonds, Series 2001B, 5.750%, 1/01/15 (Alternative Minimum Tax) - FGIC Insured 175 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/06 at 101.00 AAA 177,373 Series 1995D, 5.950%, 2/01/18 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 3.6% (2.3% OF TOTAL INVESTMENTS) 7,495 Jefferson County Industrial Development Authority, Missouri, 8/07 at 100.00 AAA 8,481,042 Housing Revenue Bonds, Richardson Road Apartments Project, Series 1985, 11.000%, 12/15/15 (Pre-refunded to 8/15/07) 2,000 Missouri Western State College, Auxiliary System Revenue 10/13 at 100.00 AAA 2,096,860 Bonds, Series 2003, 5.000%, 10/01/21 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 8.4% (5.5% OF TOTAL INVESTMENTS) 3,000 Clark County, Nevada, General Obligation Bank Bonds, 12/12 at 100.00 AAA 3,065,370 Southern Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32 - MBIA Insured 8,000 Clark County, Nevada, Subordinate Lien Airport Revenue 7/11 at 100.00 AAA 8,613,600 Bonds, Series 2001B, 5.125%, 7/01/21 (Pre-refunded to 7/01/11) - FGIC Insured 7,990 Reno, Nevada, Senior Lien Sales and Room Tax Revenue 6/12 at 100.00 AAA 8,307,123 Bonds, Reno Transportation Rail Access Corridor Project, Series 2002, 5.250%, 6/01/41 - AMBAC Insured 43 Nuveen Premier Insured Municipal Income Fund, Inc. (NIF) (continued) Portfolio of INVESTMENTS October 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEVADA (continued) $ 5,050 Washoe County, Nevada, Gas and Water Facilities Remarketed 1/06 at 100.50 AAA $ 5,136,254 Revenue Refunding Bonds, Sierra Pacific Power Company, Series 1987, 6.300%, 12/01/14 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 1.1% (0.7% OF TOTAL INVESTMENTS) New Jersey Economic Development Authority, Revenue Bonds, Motor Vehicle Surcharge, Series 2004A: 1,200 5.000%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 1,259,724 1,200 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 1,257,072 800 Rutgers State University, New Jersey, Certificates of 1/14 at 100.00 AAA 831,752 Participation, Lower Georges Street University Redevelopment Associates LLC, Series 2004, 5.000%, 1/01/24 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 7.3% (4.8% OF TOTAL INVESTMENTS) 10,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 10,676,600 Revenue Refunding Bonds, Series 2002F, 5.250%, 11/15/27 - MBIA Insured 1,000 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA 1,041,430 Water and Sewerage System Revenue Bonds, Fiscal Series 2005C, 5.000%, 6/15/25 - MBIA Insured 1,510 Dormitory Authority of the State of New York, Revenue 2/15 at 100.00 AAA 1,573,103 Bonds, Mental Health Services Facilities Improvements, Series 2005B, 5.000%, 2/15/24 - AMBAC Insured 1,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,042,420 Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/23 - FGIC Insured 5,700 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 5,955,189 Series 2005G, 5.000%, 1/01/26 - FSA Insured 1,450 New York State Thruway Authority, Highway and Bridge Trust 10/15 at 100.00 AAA 1,529,402 Fund Bonds, Second Generation, Series 2005B, 5.000%, 4/01/21 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 2.2% (1.4% OF TOTAL INVESTMENTS) 3,100 North Carolina Medical Care Commission, FHA-Insured 10/13 at 100.00 AAA 3,211,011 Mortgage Revenue Bonds, Betsy Johnson Regional Hospital Project, Series 2003, 5.125%, 10/01/32 - FSA Insured 3,050 Raleigh Durham Airport Authority, North Carolina, Airport 5/15 at 100.00 Aaa 3,194,478 Revenue Bonds, Series 2005A, 5.000%, 5/01/22 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 0.5% (0.3% OF TOTAL INVESTMENTS) 1,500 Tallmadge City School District, Ohio, General Obligation Bonds, 6/15 at 100.00 AAA 1,556,025 Series 2005, 5.000%, 12/01/28 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 1.5% (1.0% OF TOTAL INVESTMENTS) 1,180 Oklahoma Housing Finance Agency, GNMA Collateralized No Opt. Call AAA 1,273,609 Single Family Mortgage Revenue Bonds, Series 1987A, 7.997%, 8/01/18 (Alternative Minimum Tax) 3,000 Tulsa Industrial Authority, Oklahoma, GNMA Collateralized 11/05 at 103.00 Aaa 3,106,860 Multifamily Housing Revenue Bonds, Country Club of Woodland Hills Project, Series 1995, 6.250%, 11/01/27 ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 5.9% (3.9% OF TOTAL INVESTMENTS) Oregon Health Sciences University, Revenue Bonds, Series 2002A: 5,000 5.000%, 7/01/26 - MBIA Insured 1/13 at 100.00 AAA 5,177,750 7,000 5.000%, 7/01/32 - MBIA Insured 1/13 at 100.00 AAA 7,201,180 4,905 Oregon Health, Housing, Educational and Cultural Facilities 3/12 at 105.00 Aaa 5,289,307 Authority, GNMA Mortgage-Backed Securities Program Assisted Living Project Revenue Bonds, Necanicum Village LLC, Series 2001A, 6.850%, 6/20/42 ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 0.5% (0.3% OF TOTAL INVESTMENTS) 1,500 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AAA 1,569,495 Revenue Bonds, Series 2005A, 5.000%, 12/01/23 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 1.6% (1.1% OF TOTAL INVESTMENTS) 2,000 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 2,252,520 Transportation Authority, Series 2003AA, 5.500%, 7/01/17 - MBIA Insured 2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 2,652,325 Series 2005RR, 5.000%, 7/01/22 - FGIC Insured 44 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 3.6% (2.4% OF TOTAL INVESTMENTS) $ 3,000 Blount County Public Building Authority, Tennessee, Local 6/15 at 100.00 Aaa $ 3,135,810 Government Public Improvement Lease Bonds, Oak Ridge, Series 2005B-9-A, 5.000%, 6/01/24 - AMBAC Insured 2,055 Memphis, Tennessee, Sanitary Sewerage System Revenue 10/14 at 100.00 AAA 2,156,661 Bonds, Series 2004, 5.000%, 10/01/22 - FSA Insured 5,000 Metropolitan Government of Nashville-Davidson County Health 11/09 at 101.00 AAA 5,515,350 and Educational Facilities Board, Tennessee, Revenue Bonds, Ascension Health Credit Group, Series 1999A, 6.000%, 11/15/30 (Pre-refunded to 11/15/09) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 10.5% (6.9% OF TOTAL INVESTMENTS) 12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 AAA 13,078,125 Refunding and Improvement Bonds, Series 2001A, 5.500%, 11/01/35 (Alternative Minimum Tax) - FGIC Insured North Harris County Regional Water Authority, Texas, Senior Water Revenue Bonds, Series 2003: 4,565 5.250%, 12/15/20 - FGIC Insured 12/13 at 100.00 AAA 4,911,301 4,800 5.250%, 12/15/21 - FGIC Insured 12/13 at 100.00 AAA 5,164,128 7,600 San Antonio, Texas, Airport System Improvement Revenue 7/11 at 101.00 AAA 8,037,152 Bonds, Series 2001, 5.375%, 7/01/16 (Alternative Minimum Tax) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 19.0% (12.4% OF TOTAL INVESTMENTS) 5,000 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 5,302,700 Consolidated System Revenue Bonds, Series 2001B, 5.600%, 1/01/36 (Alternative Minimum Tax) - MBIA Insured 1,570 Clark County School District 101, La Center, Washington, 12/12 at 100.00 Aaa 1,687,954 General Obligation Bonds, Series 2002, 5.250%, 12/01/18 - FSA Insured King County School District 405, Bellevue, Washington, General Obligation Bonds, Series 2002: 12,060 5.000%, 12/01/19 - FGIC Insured 12/12 at 100.00 AAA 12,641,654 12,785 5.000%, 12/01/20 - FGIC Insured 12/12 at 100.00 AAA 13,381,676 Pierce County School District 343, Dieringer, Washington, General Obligation Refunding Bonds, Series 2003: 2,755 5.250%, 12/01/18 - FGIC Insured 6/13 at 100.00 Aaa 2,954,049 2,990 5.250%, 12/01/19 - FGIC Insured 6/13 at 100.00 Aaa 3,206,027 4,715 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 10/11 at 100.00 AAA 5,064,853 5.625%, 4/01/17 (Alternative Minimum Tax) - FGIC Insured 895 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 968,148 Terminal 18, Series 1999C, 6.000%, 9/01/29 (Alternative Minimum Tax) - MBIA Insured 1,265 Tacoma, Washington, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 1,329,173 5.000%, 12/01/18 - FGIC Insured 4,200 Tacoma, Washington, Solid Waste Utility Revenue Refunding 12/11 at 100.00 AAA 4,466,155 Bonds, Series 2001, 5.250%, 12/01/20 - AMBAC Insured 5,000 Washington, General Obligation Bonds, Series 2001C, 1/11 at 100.00 AAA 5,267,400 5.250%, 1/01/26 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 435,380 Total Long-Term Investments (cost $427,505,598) - 151.9% 452,188,446 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 0.5% (0.3% OF TOTAL INVESTMENTS) 1,500 Idaho Health Facilities Authority, Revenue Bonds, St. Luke's A-1+ 1,500,000 Regional Medical Center, Variable Rate Demand Obligations, Series 2000, 2.730%, 7/01/30 - FSA Insured + ------------------------------------------------------------------------------------------------------------------------------------ $ 1,500 Total Short-Term Investments (cost $1,500,000) 1,500,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $429,005,598) - 152.4% 453,688,446 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.7% 4,935,191 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (54.1)% (161,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 297,623,637 ====================================================================================================================
All of the bonds in the Portfolio of Investments are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. The rate disclosed is that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 45 Nuveen Insured Premium Income Municipal Fund 2 (NPX) Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 2.5% (1.7% OF TOTAL INVESTMENTS) $ 3,750 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 6/15 at 100.00 AAA $ 3,867,975 Series 2005A, 5.000%, 6/01/24 - MBIA Insured Jefferson County, Alabama, General Obligation Warrants, Series 2004A: 1,500 5.000%, 4/01/21 - MBIA Insured 4/14 at 100.00 AAA 1,571,820 1,395 5.000%, 4/01/22 - MBIA Insured 4/14 at 100.00 AAA 1,457,789 1,040 5.000%, 4/01/23 - MBIA Insured 4/14 at 100.00 AAA 1,084,574 Montgomery Water and Sewerage Board, Alabama, Water and Sewerage Revenue Bonds, Series 2005: 2,220 5.000%, 3/01/24 - FSA Insured 3/15 at 100.00 AAA 2,318,324 2,590 5.000%, 3/01/25 - FSA Insured 3/15 at 100.00 AAA 2,700,697 ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 2.4% (1.6% OF TOTAL INVESTMENTS) 12,365 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/15 at 100.00 AAA 12,522,159 Water System Revenue Bonds, Series 2005, 4.750%, 7/01/27 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 2.4% (1.6% OF TOTAL INVESTMENTS) 7,745 Arkansas Development Finance Authority, State Facility 6/14 at 100.00 AAA 8,242,461 Revenue Bonds, Donaghey Plaza Project, Series 2004, 5.250%, 6/01/25 - FSA Insured University of Arkansas, Fayetteville, Revenue Bonds, Medical Sciences Campus, Series 2004B: 2,000 5.000%, 11/01/27 - MBIA Insured 11/14 at 100.00 Aaa 2,083,100 2,000 5.000%, 11/01/28 - MBIA Insured 11/14 at 100.00 Aaa 2,072,580 ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 21.0% (14.0% OF TOTAL INVESTMENTS) 1,800 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aaa 1,864,728 Occidental College, Series 2005A, 5.000%, 10/01/33 - MBIA Insured California Department of Water Resources, Water System Revenue Bonds, Central Valley Project, Series 2005AC: 2,000 5.000%, 12/01/24 - MBIA Insured 12/14 at 100.00 AAA 2,088,220 2,215 5.000%, 12/01/25 - MBIA Insured 12/14 at 100.00 AAA 2,307,653 31,200 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 24.23 AAA 6,191,016 Toll Road Revenue Refunding Bonds, Series 1999, 0.000%, 1/15/34 - MBIA Insured 7,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 7,168,420 Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/35 - FGIC Insured 6,520 Los Angeles Unified School District, California, General 7/15 at 100.00 AAA 6,853,759 Obligation Bonds, Series 2005E, 5.000%, 7/01/22 - AMBAC Insured 15,000 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 15,733,200 of Participation, Series 2003, 5.250%, 2/01/30 - FGIC Insured 10,000 Orange County Water District, California, Revenue Certificates 8/13 at 100.00 AAA 10,227,800 of Participation, Series 2003B, 5.000%, 8/15/34 - MBIA Insured 1,000 Orange County Water District, California, Revenue Certificates 2/15 at 100.00 AAA 1,037,170 of Participation, Series 2005B, 5.000%, 8/15/24 - MBIA Insured 1,435 Pasadena Area Community College District, Los Angeles 6/13 at 100.00 AAA 1,499,561 County, California, General Obligation Bonds, Series 2003A, 5.000%, 6/01/22 - FGIC Insured 1,940 Riverside, California, Certificates of Participation, Series 2003, 9/13 at 100.00 AAA 2,023,498 5.000%, 9/01/20 - AMBAC Insured Sacramento City Financing Authority, California, Capital Improvement Revenue Bonds, Solid Waste and Redevelopment Projects, Series 1999: 9,220 5.800%, 12/01/19 (Pre-refunded to 12/01/09) - AMBAC Insured 12/09 at 102.00 AAA 10,263,151 3,780 5.800%, 12/01/19 - AMBAC Insured 12/09 at 102.00 AAA 4,189,676 46 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) $ 14,170 San Diego Unified School District, San Diego County, 7/15 at 100.00 AAA $ 14,725,181 California, General Obligation Bonds, Series 2005G, 5.000%, 7/01/29 - FSA Insured San Diego County, California, Certificates of Participation, Edgemoor Facility Project and Regional System, Series 2005: 1,675 5.000%, 2/01/24 - AMBAC Insured 2/15 at 100.00 AAA 1,737,042 720 5.000%, 2/01/25 - AMBAC Insured 2/15 at 100.00 AAA 745,013 2,000 San Jose Redevelopment Agency, California, Tax Allocation 8/14 at 100.00 AAA 2,157,640 Bonds, Merged Area Redevelopment Project, Series 2004A, 5.250%, 8/01/19 - MBIA Insured 5,000 Torrance, California, Certificates of Participation, Series 2005B, No Opt. Call AAA 5,181,600 5.000%, 6/01/24 - AMBAC Insured 12,500 University of California, Revenue Bonds, Multi-Purpose Projects, 5/13 at 100.00 AAA 12,827,250 Series 2003A, 5.000%, 5/15/33 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 11.1% (7.4% OF TOTAL INVESTMENTS) 1,690 Adams 12 Five Star Schools, Adams County, Colorado, 12/15 at 100.00 AAA 1,771,323 General Obligation Bonds, Series 2005, 5.000%, 12/15/24 - FSA Insured 1,940 Colorado Educational and Cultural Facilities Authority, Charter 6/13 at 100.00 AAA 2,045,924 School Revenue Bonds, Adams School District 12 - Pinnacle School, Series 2003, 5.250%, 6/01/23 - XLCA Insured 3,405 Colorado Educational and Cultural Facilities Authority, Charter 12/13 at 100.00 AAA 3,601,128 School Revenue Bonds, Classical Academy, Series 2003, 5.250%, 12/01/23 - XLCA Insured 3,500 Colorado Health Facilities Authority, Revenue Bonds, Poudre 12/09 at 101.00 Aaa 3,837,575 Valley Healthcare Inc., Series 1999A, 5.750%, 12/01/23 (Pre-refunded to 12/01/09) - FSA Insured 6,100 Denver School District 1, Colorado, General Obligation Bonds, 12/13 at 100.00 AAA 6,450,628 Series 2004, 5.000%, 12/01/18 - FSA Insured Denver Convention Center Hotel Authority, Colorado, Senior Revenue Bonds, Convention Center Hotel, Series 2003A: 9,670 5.000%, 12/01/19 - XLCA Insured 12/13 at 100.00 AAA 10,064,053 17,145 5.000%, 12/01/33 - XLCA Insured 12/13 at 100.00 AAA 17,527,505 1,325 El Paso County, Colorado, Certificates of Participation, 12/12 at 100.00 AAA 1,365,161 Detention Facility Project, Series 2002B, 5.000%, 12/01/27 - AMBAC Insured Jefferson County School District R1, Colorado, General Obligation Bonds, Series 2004: 2,500 5.000%, 12/15/22 - FSA Insured 12/14 at 100.00 AAA 2,622,125 5,125 5.000%, 12/15/23 - FSA Insured 12/14 at 100.00 AAA 5,363,569 2,000 5.000%, 12/15/24 - FSA Insured 12/14 at 100.00 AAA 2,088,500 1,000 University of Colorado, Enterprise System Revenue Bonds, 6/15 at 100.00 AAA 1,035,780 Series 2005, 5.000%, 6/01/30 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.6% (0.4% OF TOTAL INVESTMENTS) 3,140 District of Columbia Housing Finance Agency, GNMA 12/05 at 100.00 AAA 3,140,471 Collateralized Single Family Mortgage Revenue Bonds, Series 1990C-4, 6.350%, 12/01/24 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 0.8% (0.5% OF TOTAL INVESTMENTS) 4,000 Florida State Board of Education, Full Faith and Credit Public 6/13 at 101.00 AAA 4,190,280 Education Capital Outlay Bonds, Series 2003J, 5.000%, 6/01/22 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 3.8% (2.5% OF TOTAL INVESTMENTS) 4,000 Cobb County Development Authority, Georgia, Parking Revenue 7/14 at 100.00 Aaa 4,173,240 Bonds, Kennesaw State University, Series 2004, 5.000%, 7/15/24 - MBIA Insured 2,925 Columbus, Georgia, Water and Sewerage Revenue Bonds, 5/14 at 100.00 AAA 3,059,960 Series 2005, 5.000%, 5/01/23 - MBIA Insured Municipal Electric Authority of Georgia, Combustion Turbine Revenue Bonds, Series 2003A: 1,775 5.000%, 11/01/21 - MBIA Insured 11/13 at 100.00 AAA 1,852,248 2,580 5.000%, 11/01/22 - MBIA Insured 11/13 at 100.00 AAA 2,685,212 47 Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued) Portfolio of INVESTMENTS October 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA (continued) $ 4,500 South Fulton Municipal Regional Water and Sewerage 1/13 at 100.00 Aaa $ 4,618,215 Authority, Georgia, Water and Sewerage Revenue Bonds, Series 2003, 5.000%, 1/01/33 - MBIA Insured 3,000 Valdosta and Lowndes County Hospital Authority, Georgia, 10/12 at 101.00 AAA 3,165,840 Revenue Certificates, South Georgia Medical Center, Series 2002, 5.200%, 10/01/22 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 7.9% (5.3% OF TOTAL INVESTMENTS) 2,375 Hawaii County, Hawaii, General Obligation Bonds, 7/13 at 100.00 AAA 2,497,241 Series 2003A, 5.000%, 7/15/19 - FSA Insured Hawaii Department of Transportation, Airport System Revenue Refunding Bonds, Series 2000B: 6,105 6.100%, 7/01/16 (Alternative Minimum Tax) - FGIC Insured 7/10 at 101.00 AAA 6,683,937 9,500 6.625%, 7/01/17 (Alternative Minimum Tax) - FGIC Insured 7/10 at 101.00 AAA 10,581,005 20,000 Hawaii Department of Budget and Finance, Special Purpose 7/10 at 101.00 AAA 21,480,000 Revenue Refunding Bonds, Hawaiian Electric Company Inc., Series 2000, 5.700%, 7/01/20 (Alternative Minimum Tax) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.1% (0.1% OF TOTAL INVESTMENTS) 715 Idaho Housing and Finance Association, Single Family Mortgage 1/08 at 101.50 AAA 726,326 Bonds, Series 1998E, 5.450%, 7/01/18 (Alternative Minimum Tax) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 3.3% (2.2% OF TOTAL INVESTMENTS) 4,115 Chicago Park District, Illinois, Limited Tax General Obligation 7/11 at 100.00 AAA 4,462,923 Park Bonds, Series 2001C, 5.500%, 1/01/18 - FGIC Insured 1,950 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call AAA 2,290,041 SSM Healthcare System, Series 1992AA, 6.550%, 6/01/14 - MBIA Insured Illinois Health Facilities Authority, Revenue Bonds, Lutheran General Health System, Series 1993A: 3,625 6.125%, 4/01/12 - FSA Insured No Opt. Call AAA 3,926,673 5,000 6.250%, 4/01/18 - FSA Insured No Opt. Call AAA 5,840,850 400 Peoria, Moline and Freeport, Illinois, GNMA Collateralized 4/06 at 105.00 AAA 406,064 Single Family Mortgage Revenue Bonds, Series 1995A, 7.600%, 4/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 1.2% (0.8% OF TOTAL INVESTMENTS) Hamilton County Public Building Corporation, Indiana, First Mortgage Bonds, Series 2004: 2,105 5.000%, 8/01/23 - FSA Insured 8/14 at 100.00 AAA 2,184,148 2,215 5.000%, 8/01/24 - FSA Insured 8/14 at 100.00 AAA 2,293,411 1,625 Hammond Multi-School Building Corporation, Lake County, 7/13 at 100.00 AAA 1,687,498 Indiana, First Mortgage Revenue Bonds, Series 2003B, 5.000%, 1/15/21 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS) 2,300 Butler County Unified School District 394, Kansas, General 9/14 at 100.00 AAA 2,421,486 Obligation Bonds, Series 2004, 5.000%, 9/01/21 - FSA Insured 1,500 Kansas Turnpike Authority, Revenue Bonds, Series 2004A-2, 9/14 at 101.00 AAA 1,571,475 5.000%, 9/01/27 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.1% (0.8% OF TOTAL INVESTMENTS) 7,000 Kentucky Economic Development Finance Authority, Health No Opt. Call AAA 2,227,190 System Revenue Bonds, Norton Healthcare Inc., Series 2000B, 0.000%, 10/01/28 - MBIA Insured 3,575 Kentucky Turnpike Authority, Economic Development Road 7/15 at 100.00 AAA 3,732,193 Revenue Bonds, Revitalization Project, Series 2005B, 5.000%, 7/01/25 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 1.5% (1.0% OF TOTAL INVESTMENTS) 1,640 Louisiana Public Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,714,194 Baton Rouge General Hospital, Series 2004, 5.250%, 7/01/24 - MBIA Insured Louisiana, Gasoline and Fuels Tax Revenue Bonds, Series 2005A: 1,200 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AAA 1,238,004 2,210 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AAA 2,279,991 2,500 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AAA 2,577,225 48 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 5.7% (3.8% OF TOTAL INVESTMENTS) $ 4,910 Massachusetts, General Obligation Bonds, Consolidated Loan, No Opt. Call AAA $ 5,464,192 Series 2002C, 5.500%, 11/01/15 - MBIA Insured 3,000 Massachusetts Development Finance Authority, Revenue Bonds, No Opt. Call AAA 3,571,860 WGBH Educational Foundation, Series 2002A, 5.750%, 1/01/42 - AMBAC Insured 2,600 Massachusetts Health and Educational Facilities Authority, 10/13 at 100.00 AAA 2,674,334 Revenue Bonds, Simmons College, Series 2003F, 5.000%, 10/01/33 - FGIC Insured 180 Massachusetts Housing Finance Agency, Single Family Housing 6/07 at 102.00 AAA 185,996 Revenue Bonds, Series 53, 6.150%, 12/01/29 (Alternative Minimum Tax) - MBIA Insured 10,925 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 11,481,083 Revenue Bonds, Series 2005A, 5.000%, 8/15/22 - FSA Insured Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, Series 2004: 3,650 5.250%, 1/01/22 (Pre-refunded to 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 3,961,017 2,000 5.250%, 1/01/24 (Pre-refunded to 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 2,170,420 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 2.0% (1.3% OF TOTAL INVESTMENTS) 10,000 Michigan Housing Development Authority, Rental Housing 4/07 at 102.00 AAA 10,487,300 Revenue Bonds, Series 1997A, 6.000%, 4/01/16 (Alternative Minimum Tax) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 0.2% (0.1% OF TOTAL INVESTMENTS) 1,050 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/06 at 101.00 AAA 1,064,238 Series 1995D, 5.950%, 2/01/18 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 0.7% (0.5% OF TOTAL INVESTMENTS) 1,000 Hazelwood Industrial Development Authority, Missouri, 9/06 at 102.00 AAA 1,030,990 GNMA Collateralized Project Multifamily Housing Revenue Refunding Bonds, Lakes Apartments Project, Series 1996, 6.000%, 9/20/16 1,000 Kansas City Municipal Assistance Corporation, Missouri, 1/06 at 101.00 AAA 1,015,480 Leasehold Revenue Bonds, Capital Improvements, Series 1996B, 5.750%, 1/15/14 - AMBAC Insured 1,030 Missouri Housing Development Commission, Multifamily 12/06 at 102.00 AAA 1,062,023 Housing Revenue Bonds, Brookstone Village Apartments, Series 1996A, 6.000%, 12/01/16 (Alternative Minimum Tax) - FSA Insured 750 Missouri Western State College, Auxiliary System Revenue 10/13 at 100.00 AAA 771,442 Bonds, Series 2003, 5.000%, 10/01/33 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 0.4% (0.3% OF TOTAL INVESTMENTS) Nebraska Public Power District, General Revenue Bonds, Series 2005A: 1,000 5.000%, 1/01/24 - FSA Insured 1/15 at 100.00 AAA 1,045,180 1,000 5.000%, 1/01/25 - FSA Insured 1/15 at 100.00 AAA 1,044,420 ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 4.2% (2.8% OF TOTAL INVESTMENTS) 3,280 Clark County, Nevada, Subordinate Lien Airport Revenue 7/14 at 100.00 AAA 3,437,079 Bonds, Series 2004A-2, 5.125%, 7/01/24 - FGIC Insured 5,000 Clark County, Nevada, Industrial Development Revenue Bonds, 12/05 at 100.00 AAA 5,200,300 Nevada Power Company, Series 1992A, 6.700%, 6/01/22 (Alternative Minimum Tax) - FGIC Insured 5,000 Clark County, Nevada, Industrial Development Revenue Bonds, 7/10 at 102.00 AAA 5,476,400 Southwest Gas Corporation, Series 2000C, 5.950%, 12/01/38 (Alternative Minimum Tax) - AMBAC Insured Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000: 5,000 0.000%, 1/01/27 - AMBAC Insured No Opt. Call AAA 1,714,900 5,500 5.625%, 1/01/32 - AMBAC Insured 1/10 at 102.00 AAA 5,963,815 49 Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued) Portfolio of INVESTMENTS October 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 3.1% (2.1% OF TOTAL INVESTMENTS) Essex County Improvement Authority, New Jersey, Guaranteed Revenue Bonds, Project Consolidation, Series 2004: $ 2,000 5.125%, 10/01/21 - MBIA Insured 10/14 at 100.00 Aaa $ 2,123,340 2,250 5.125%, 10/01/22 - MBIA Insured 10/14 at 100.00 Aaa 2,385,338 1,560 Mount Olive Township Board of Education, Morris County, 1/15 at 100.00 Aaa 1,640,371 New Jersey, General Obligation Bonds, Series 2004, 5.000%, 1/15/22 - MBIA Insured New Jersey Economic Development Authority, Revenue Bonds, Motor Vehicle Surcharge, Series 2004A: 1,475 5.000%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 1,548,411 1,475 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 1,545,151 3,075 New Jersey Transit Corporation, Certificates of Participation No Opt. Call AAA 3,414,849 Refunding, Series 2003, 5.500%, 10/01/15 - FSA Insured 3,315 New Jersey Turnpike Authority, Revenue Bonds, 1/15 at 100.00 AAA 3,477,534 Series 2005A, 5.000%, 1/01/25 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 0.9% (0.6% OF TOTAL INVESTMENTS) 2,000 New Mexico Finance Authority, Public Project Revolving 6/15 at 100.00 Aaa 2,084,440 Fund Revenue Bonds, Series 2005E, 5.000%, 6/15/25 - MBIA Insured New Mexico Finance Authority, Public Project Revolving Fund Revenue Bonds, Series 2004C: 1,415 5.000%, 6/01/22 - AMBAC Insured 6/14 at 100.00 AAA 1,480,755 1,050 5.000%, 6/01/24 - AMBAC Insured 6/14 at 100.00 AAA 1,094,216 ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 11.7% (7.8% OF TOTAL INVESTMENTS) 1,755 Nassau County, New York, General Obligation Improvement 3/10 at 100.00 AAA 1,930,044 Bonds, Series 2000E, 6.000%, 3/01/16 (Pre-refunded to 3/01/10) - FSA Insured 7,500 Nassau Health Care Corporation, New York, County Guaranteed 8/09 at 102.00 AAA 8,276,775 Revenue Bonds, Series 1999, 5.750%, 8/01/29 (Pre-refunded to 8/01/09) - FSA Insured 5,000 New York City, New York, General Obligation Bonds, Fiscal 11/14 at 100.00 AAA 5,226,650 Series 2004E, 5.000%, 11/01/21 - FSA Insured 1,250 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA 1,301,788 Water and Sewerage System Revenue Bonds, Fiscal Series 2005C, 5.000%, 6/15/25 - MBIA Insured 1,785 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 1,856,846 Mental Health Services Facilities Improvements, Series 2005A, 5.000%, 2/15/24 - AMBAC Insured 1,230 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 1,279,508 Mental Health Services Facilities Improvements, Series 2005D, 5.000%, 8/15/24 - FGIC Insured 1,120 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,167,510 Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/23 - FGIC Insured Dormitory Authority of the State of New York, Insured Revenue Bonds, New Island Hospital, Series 1999B: 3,400 5.750%, 7/01/19 - MBIA Insured 7/09 at 101.00 AAA 3,664,656 5,750 6.000%, 7/01/24 - MBIA Insured 7/09 at 101.00 AAA 6,282,623 9,095 New York State Housing Finance Agency, Mortgage Revenue 5/06 at 102.00 AAA 9,411,597 Refunding Bonds, Housing Project, Series 1996A, 6.125%, 11/01/20 - FSA Insured New York State Thruway Authority, General Revenue Bonds, Series 2005G: 3,770 5.000%, 1/01/25 - FSA Insured 7/15 at 100.00 AAA 3,935,767 5,980 5.000%, 1/01/26 - FSA Insured 7/15 at 100.00 AAA 6,247,725 5,000 New York State Thruway Authority, Highway and Bridge Trust 10/15 at 100.00 AAA 5,273,800 Fund Bonds, Second Generation, Series 2005B, 5.000%, 4/01/21 - AMBAC Insured New York City Sales Tax Asset Receivable Corporation, New York, Dedicated Revenue Bonds, Local Government Assistance Corporation, Series 2004A: 3,225 5.000%, 10/15/24 - MBIA Insured 10/14 at 100.00 AAA 3,377,833 1,665 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 1,741,390 50 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 1.7% (1.2% OF TOTAL INVESTMENTS) $ 1,250 Appalachian State University, North Carolina, Revenue Bonds, 7/15 at 100.00 Aaa $ 1,295,150 Series 2005, 5.000%, 7/15/30 - MBIA Insured Mooresville, North Carolina, Enterprise System Revenue Bonds, Series 2004: 2,225 5.000%, 5/01/23 - FGIC Insured 5/14 at 100.00 AAA 2,324,435 2,335 5.000%, 5/01/24 - FGIC Insured 5/14 at 100.00 AAA 2,434,308 2,900 Raleigh Durham Airport Authority, North Carolina, Airport 5/15 at 100.00 Aaa 3,046,566 Revenue Bonds, Series 2005A, 5.000%, 5/01/21 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 3.8% (2.6% OF TOTAL INVESTMENTS) 10,715 Fargo, North Dakota, Health System Revenue Bonds, MeritCare 6/10 at 101.00 AAA 11,551,842 Obligated Group, Series 2000A, 5.600%, 6/01/21 - FSA Insured 8,000 North Dakota, Student Loan Trust Revenue Bonds, Series 2000B, 12/10 at 100.00 AAA 8,353,280 5.850%, 12/01/25 (Alternative Minimum Tax) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 0.5% (0.4% OF TOTAL INVESTMENTS) 1,930 Marysville Exempted Village School District, Ohio, Certificates 6/15 at 100.00 AAA 2,070,350 of Participation, School Facilities Project, Series 2005, 5.250%, 12/01/22 - MBIA Insured 700 Shaker Heights, Ohio, General Obligation Bonds, Series 2003, 12/13 at 100.00 AAA 746,305 5.250%, 12/01/26 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 1.1% (0.7% OF TOTAL INVESTMENTS) Oklahoma City Airport Trust, Oklahoma, Junior Lien Tax Exempt Bonds, Twenty Seventh Series 2000A: 1,320 5.125%, 7/01/20 - FSA Insured 7/10 at 100.00 AAA 1,362,029 4,040 5.250%, 7/01/21 - FSA Insured 7/10 at 100.00 AAA 4,255,453 ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 3.6% (2.4% OF TOTAL INVESTMENTS) 2,110 Oregon Department of Administrative Services, Certificates of 5/15 at 100.00 AAA 2,173,553 Participation, Series 2005A, 5.000%, 5/01/30 - FSA Insured Portland, Oregon, Airport Way Urban Renewal and Redevelopment Bonds, Series 2000A: 4,405 5.700%, 6/15/17 (Pre-refunded to 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 4,858,363 3,665 5.750%, 6/15/18 (Pre-refunded to 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 4,049,972 4,265 5.750%, 6/15/19 (Pre-refunded to 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 4,712,996 1,375 5.750%, 6/15/20 (Pre-refunded to 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 1,519,430 1,520 Portland Housing Authority, Oregon, Multifamily Housing Revenue 7/10 at 100.00 Aaa 1,574,462 Bonds, Lovejoy Station Apartments, Series 2000, 6.000%, 7/01/33 (Alternative Minimum Tax) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 12.1% (8.1% OF TOTAL INVESTMENTS) 12,620 Allegheny County Hospital Development Authority, Pennsylvania, 11/10 at 102.00 AAA 14,268,929 Insured Revenue Bonds, West Penn Allegheny Health System, Series 2000A, 6.500%, 11/15/30 - MBIA Insured 2,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AAA 2,092,660 Revenue Bonds, Series 2005A, 5.000%, 12/01/23 - MBIA Insured 9,485 Berks County Municipal Authority, Pennsylvania, Hospital 11/09 at 102.00 AAA 10,561,263 Revenue Bonds, Reading Hospital and Medical Center, Series 1999, 6.000%, 11/01/19 (Pre-refunded to 11/01/09) - FSA Insured 5,780 Pennsylvania Higher Educational Facilities Authority, Revenue 5/15 at 100.00 AAA 6,003,686 Bonds, Drexel University, Series 2005A, 5.000%, 5/01/28 - MBIA Insured Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General Ordinance, Fifth Series 2004A-1: 5,235 5.000%, 9/01/24 - FSA Insured 9/14 at 100.00 AAA 5,398,698 3,000 5.000%, 9/01/25 - FSA Insured 9/14 at 100.00 AAA 3,089,400 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, Series 1997A: 2,360 5.125%, 8/01/27 - AMBAC Insured 8/07 at 102.00 AAA 2,446,824 10,370 5.125%, 8/01/27 - AMBAC Insured 8/07 at 102.00 AAA 10,808,444 2,500 Seneca Valley School District, Butler County, Pennsylvania, 7/14 at 100.00 Aaa 2,639,975 General Obligation Bonds, Series 2004, 5.125%, 1/01/23 - FGIC Insured 51 Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued) Portfolio of INVESTMENTS October 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA (continued) $ 1,705 Solebury Township, Pennsylvania, General Obligation Bonds, 6/15 at 100.00 Aaa $ 1,779,696 Series 2005, 5.000%, 12/15/25 - AMBAC Insured 3,650 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 3,750,667 Revenue Bonds, Philadelphia School District, Series 2003, 5.000%, 6/01/29 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.5% (0.2% OF TOTAL INVESTMENTS) 2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 2,652,325 Series 2005RR, 5.000%, 7/01/22 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 1.0% (0.7% OF TOTAL INVESTMENTS) 5,000 South Carolina Public Service Authority, Revenue Bonds, 1/14 at 100.00 AAA 5,243,850 Santee Cooper Electric System, Series 2004A, 5.000%, 1/01/20 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 14.9% (10.0% OF TOTAL INVESTMENTS) Brazos River Authority, Texas, Revenue Refunding Bonds, Houston Industries Inc., Series 1998C: 10,000 5.125%, 5/01/19 - AMBAC Insured 5/08 at 102.00 AAA 10,430,400 9,000 5.125%, 11/01/20 (Optional put 11/01/08) - AMBAC Insured 11/08 at 102.00 AAA 9,425,610 Corpus Christi, Texas, Utility System Revenue Bonds, Series 2004: 3,475 5.000%, 7/15/22 - FSA Insured 7/14 at 100.00 AAA 3,617,823 3,645 5.000%, 7/15/23 - FSA Insured 7/14 at 100.00 AAA 3,786,827 12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 AAA 13,078,125 Refunding and Improvement Bonds, Series 2001A, 5.500%, 11/01/35 (Alternative Minimum Tax) - FGIC Insured 4,485 Lower Colorado River Authority, Texas, Contract Revenue 5/12 at 100.00 AAA 4,670,006 Refunding Bonds, Transmission Services Corporation, Series 2003B, 5.000%, 5/15/21 - FSA Insured 10,000 Lower Colorado River Authority, Texas, Contract Revenue 5/13 at 100.00 AAA 10,223,400 Refunding Bonds, Transmission Services Corporation, Series 2003C, 5.000%, 5/15/33 - AMBAC Insured 4,151 Panhandle Regional Housing Finance Corporation, Texas, 7/12 at 105.00 Aaa 4,477,310 GNMA Collateralized Multifamily Housing Mortgage Revenue Bonds, Renaissance of Amarillo Apartments, Series 2001A, 6.650%, 7/20/42 Tarrant County Health Facilities Development Corporation, Texas, Hospital Revenue Bonds, Cook Children's Healthcare System, Series 2000A: 6,725 5.750%, 12/01/17 - FSA Insured 12/10 at 101.00 AAA 7,350,291 7,500 5.750%, 12/01/24 - FSA Insured 12/10 at 101.00 AAA 8,203,575 2,300 Texas State University System, Financing Revenue Refunding 3/12 at 100.00 AAA 2,403,799 Bonds, Series 2002, 5.000%, 3/15/18 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 3.3% (2.2% OF TOTAL INVESTMENTS) 8,600 Intermountain Power Agency, Utah, Power Supply Revenue 7/13 at 100.00 AAA 9,082,288 Refunding Bonds, Series 2003A, 5.000%, 7/01/18 - FSA Insured 2,385 Mountain Regional Water Special Service District, Utah, Water 12/13 at 100.00 AAA 2,449,729 Revenue Bonds, Series 2003, 5.000%, 12/15/33 - MBIA Insured 5,525 Utah Transit Authority, Sales Tax Revenue Bonds, Series 2002A, 12/12 at 100.00 AAA 5,735,779 5.000%, 6/15/24 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ VERMONT - 0.3% (0.2% OF TOTAL INVESTMENTS) 1,320 Vermont Educational and Health Buildings Financing Agency, 12/10 at 101.00 AAA 1,459,564 Revenue Bonds, Fletcher Allen Health Care Inc., Series 2000A, 6.000%, 12/01/23 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.8% (0.5% OF TOTAL INVESTMENTS) Loudoun County Industrial Development Authority, Virginia, Lease Revenue Bonds, Public Safety Facilities, Series 2003A: 1,150 5.250%, 12/15/22 - FSA Insured 6/14 at 100.00 AAA 1,230,098 500 5.250%, 12/15/23 - FSA Insured 6/14 at 100.00 AAA 534,450 2,250 Virginia Housing Development Authority, Multifamily Housing 1/08 at 102.00 AAA 2,345,423 Bonds, Series 1997B, 6.050%, 5/01/17 (Alternative Minimum Tax) - MBIA Insured 52 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 8.5% (5.7% OF TOTAL INVESTMENTS) $ 10,000 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA $ 10,605,400 Consolidated System Revenue Bonds, Series 2001B, 5.600%, 1/01/36 (Alternative Minimum Tax) - MBIA Insured 1,370 Clark County School District 101, La Center, Washington, 12/12 at 100.00 Aaa 1,426,280 General Obligation Bonds, Series 2002, 5.000%, 12/01/22 - FSA Insured 5,230 Douglas County Public Utility District 1, Washington, 9/09 at 102.00 AAA 5,733,440 Revenue Bonds, Wells Hydroelectric, Series 1999A, 6.125%, 9/01/29 (Alternative Minimum Tax) - MBIA Insured 5,000 Seattle, Washington, Municipal Light and Power Revenue 8/14 at 100.00 AAA 5,195,350 Bonds, Series 2004, 5.000%, 8/01/23 - FSA Insured Tacoma, Washington, General Obligation Bonds, Series 2004: 1,545 5.000%, 12/01/19 - MBIA Insured 12/14 at 100.00 AAA 1,622,590 1,620 5.000%, 12/01/20 - MBIA Insured 12/14 at 100.00 AAA 1,696,399 1,695 5.000%, 12/01/21 - MBIA Insured 12/14 at 100.00 AAA 1,772,343 10,855 Washington, General Obligation Bonds, Series 2000S-5, No Opt. Call AAA 5,582,180 0.000%, 1/01/20 - FGIC Insured 6,200 Washington, General Obligation Various Purpose Bonds, 7/12 at 100.00 AAA 6,482,906 Series 2003A, 5.000%, 7/01/20 - FGIC Insured 3,950 Washington State Healthcare Facilities Authority, Revenue 11/08 at 101.00 Aaa 4,091,170 Bonds, Swedish Health Services, Series 1998, 5.125%, 11/15/22 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 1.6% (1.0% OF TOTAL INVESTMENTS) 8,000 Pleasants County, West Virginia, Pollution Control Revenue 11/05 at 102.00 AAA 8,146,560 Bonds, Monongahela Power Company Pleasants Station Project, Series 1995C, 6.150%, 5/01/15 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 6.6% (4.4% OF TOTAL INVESTMENTS) 1,000 Green Bay, Wisconsin, Water System Revenue Bonds, 11/14 at 100.00 Aaa 1,048,360 Series 2004, 5.000%, 11/01/21 - FSA Insured 7,000 La Crosse, Wisconsin, Resource Recovery Revenue Refunding No Opt. Call AAA 8,149,120 Bonds, Northern States Power Company Project, Series 1996, 6.000%, 11/01/21 (Alternative Minimum Tax) - MBIA Insured 12,750 Milwaukee County, Wisconsin, Airport Revenue Bonds, 12/10 at 100.00 Aaa 13,636,630 Series 2000A, 5.750%, 12/01/25 (Alternative Minimum Tax) - FGIC Insured 6,250 Wisconsin Health and Educational Facilities Authority, Revenue 8/06 at 102.00 AAA 6,491,000 Bonds, Sinai Samaritan Medical Center Inc., Series 1996, 5.750%, 8/15/16 - MBIA Insured 5,000 Wisconsin Health and Educational Facilities Authority, Revenue 2/06 at 102.00 AAA 5,112,100 Bonds, Mercy Health System Corporation, Series 1995, 6.125%, 8/15/13 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 775,706 Total Long-Term Investments (cost $751,836,352) - 149.7% 779,176,291 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.0% 10,231,227 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.7)% (268,900,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 520,507,518 ====================================================================================================================
All of the bonds in the Portfolio of Investments are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemeption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. See accompanying notes to financial statements. 53 Nuveen Insured Dividend Advantage Municipal Fund (NVG) Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 4.3% (2.9% OF TOTAL INVESTMENTS) $ 5,310 Athens, Alabama, Water and Sewerage Revenue Warrants, 5/12 at 101.00 AAA $ 5,587,872 Series 2002, 5.300%, 5/01/32 - MBIA Insured 3,045 Hoover, Alabama, General Obligation Bonds, Series 2003, 3/12 at 101.00 AAA 3,191,921 5.000%, 3/01/20 - MBIA Insured 10,000 Jefferson County, Alabama, Sewer Revenue Capital 2/09 at 101.00 AAA 10,710,400 Improvement Warrants, Series 1999A, 5.375%, 2/01/36 (Pre-refunded to 2/01/09) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 3.5% (2.3% OF TOTAL INVESTMENTS) 15,000 Alaska, International Airport System Revenue Bonds, 10/12 at 100.00 AAA 15,739,050 Series 2002B, 5.250%, 10/01/27 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 1.1% (0.8% OF TOTAL INVESTMENTS) 5,000 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/12 at 100.00 AAA 5,142,550 Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 (Alternative Minimum Tax) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 11.5% (7.7% OF TOTAL INVESTMENTS) California Educational Facilities Authority, Revenue Bonds, Occidental College, Series 2005A: 1,485 5.000%, 10/01/26 - MBIA Insured 10/15 at 100.00 Aaa 1,550,459 1,565 5.000%, 10/01/27 - MBIA Insured 10/15 at 100.00 Aaa 1,630,167 8,890 California, General Obligation Veterans Welfare Bonds, 12/08 at 101.00 AA- 9,158,300 Series 1997BH, 5.400%, 12/01/14 (Alternative Minimum Tax) 3,200 California, Various Purpose General Obligation Bonds, 9/10 at 100.00 AAA 3,422,624 Series 2000, 5.250%, 9/01/17 - MBIA Insured 10,000 California, General Obligation Refunding Bonds, Series 2002, No Opt. Call AAA 10,337,900 5.000%, 2/01/23 - MBIA Insured 3,000 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 3,037,320 Series 2001BZ, 5.375%, 12/01/24 (Alternative Minimum Tax) - MBIA Insured 7,935 Los Angeles, California, Certificates of Participation, 4/12 at 100.00 AAA 8,302,152 Series 2002, 5.300%, 4/01/32 - AMBAC Insured 1,000 Los Angeles Convention and Exhibition Center Authority, 12/05 at 100.00 AAA 1,005,040 California, Certificates of Participation, Series 1985, 9.000%, 12/01/20 (Pre-refunded to 12/01/05) 3,425 Los Angeles Unified School District, California, General 7/15 at 100.00 AAA 3,575,597 Obligation Bonds, Series 2005A-1, 5.000%, 7/01/25 - FGIC Insured 7,500 Northern California Power Agency, Revenue Refunding Bonds, 7/08 at 101.00 AAA 7,862,925 Hydroelectric Project 1, Series 1998A, 5.200%, 7/01/32 - MBIA Insured 2,320 Sacramento Municipal Utility District, California, Electric 8/11 at 100.00 AAA 2,503,837 Revenue Bonds, Series 2001P, 5.250%, 8/15/18 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 0.9% (0.6% OF TOTAL INVESTMENTS) 1,580 Gunnison Watershed School District RE1J, Gunnison and No Opt. Call Aaa 1,704,141 Saguache Counties, Colorado, General Obligation Bonds, Series 2004, 5.000%, 12/01/15 - FSA Insured Sand Creek Metropolitan District, Colorado, General Obligation Bonds, Series 2004: 1,095 5.000%, 12/01/13 - XLCA Insured No Opt. Call AAA 1,166,843 1,170 5.000%, 12/01/14 - XLCA Insured 12/13 at 100.00 AAA 1,240,797 ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 16.2% (10.9% OF TOTAL INVESTMENTS) Florida Municipal Loan Council, Revenue Bonds, Series 2003B: 2,305 5.250%, 12/01/17 - MBIA Insured 12/13 at 100.00 AAA 2,482,439 1,480 5.250%, 12/01/18 - MBIA Insured 12/13 at 100.00 AAA 1,591,829 11,600 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 11,938,836 Revenue Bonds, Series 2002B, 5.125%, 10/01/21 (Alternative Minimum Tax) - FSA Insured 6,000 JEA, Florida, Water and Sewerage System Revenue Bonds, 4/07 at 100.00 AAA 6,161,580 Series 2002A, 5.500%, 10/01/41 - MBIA Insured 54 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA (continued) $ 8,155 Lee County, Florida, Solid Waste System Revenue Refunding 10/11 at 100.00 Aaa $ 8,700,733 Bonds, Series 2001, 5.625%, 10/01/13 (Alternative Minimum Tax) - MBIA Insured 15,000 Miami-Dade County School Board, Florida, Certificates of No Opt. Call AAA 15,653,550 Participation, Series 2003A, 5.000%, 8/01/27 (Mandatory put 8/01/08) - MBIA Insured Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2002: 7,165 5.625%, 10/01/15 (Alternative Minimum Tax) - FGIC Insured 10/12 at 100.00 AAA 7,725,733 5,600 5.750%, 10/01/16 (Alternative Minimum Tax) - FGIC Insured 10/12 at 100.00 AAA 6,093,360 10,000 5.125%, 10/01/21 (Alternative Minimum Tax) - FGIC Insured 10/12 at 100.00 AAA 10,304,000 2,000 5.250%, 10/01/22 (Alternative Minimum Tax) - FGIC Insured 10/12 at 100.00 AAA 2,076,800 1,000 Orange County, Florida, Sales Tax Revenue Bonds, 1/13 at 100.00 AAA 1,036,230 Series 2002B, 5.000%, 1/01/25 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 0.6% (0.3% OF TOTAL INVESTMENTS) 1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 11/14 at 100.00 AAA 1,045,330 Series 2004, 5.000%, 11/01/22 - FSA Insured 1,695 Georgia Housing and Finance Authority, Single Family Mortgage 12/11 at 100.00 AAA 1,743,833 Bonds, Series 2002B-2, 5.500%, 6/01/32 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 14.1% (9.4% OF TOTAL INVESTMENTS) 10,000 Bolingbrook, Illinois, General Obligation Bonds, Series 2002A, 1/12 at 100.00 AAA 10,574,100 5.375%, 1/01/38 - FGIC Insured Chicago, Illinois, General Obligation Bonds, Series 2001A: 50 5.500%, 1/01/38 (Pre-refunded to 1/01/11) - MBIA Insured 1/11 at 101.00 AAA 54,918 4,950 5.500%, 1/01/38 - MBIA Insured 1/11 at 101.00 AAA 5,327,537 Chicago, Illinois, Second Lien Passenger Facility Charge Revenue Bonds, O'Hare International Airport, Series 2001C: 4,250 5.500%, 1/01/16 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 4,516,475 4,485 5.500%, 1/01/17 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 4,758,899 4,730 5.500%, 1/01/18 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 5,001,975 2,930 5.500%, 1/01/19 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 3,088,308 3,000 Chicago, Illinois, Third Lien General Airport Revenue Refunding 1/12 at 100.00 AAA 3,230,730 Bonds, O'Hare International Airport, Series 2002A, 5.750%, 1/01/17 (Alternative Minimum Tax) - MBIA Insured 12,765 Chicago, Illinois, Revenue Bonds, Skyway Toll Bridge, 1/07 at 102.00 AAA 13,365,849 Series 1996, 5.500%, 1/01/23 (Pre-refunded to 1/01/07) - MBIA Insured 4,000 Cicero, Cook County, Illinois, General Obligation Corporate 12/12 at 101.00 AAA 4,186,560 Purpose Bonds, Series 2002, 5.000%, 12/01/21 - MBIA Insured 1,500 DuPage County Community School District 200, Wheaton, 10/13 at 100.00 Aaa 1,604,775 Illinois, General Obligation Bonds, Series 2003C, 5.250%, 10/01/22 - FSA Insured 5,000 Illinois, General Obligation Bonds, Illinois FIRST Program, 4/12 at 100.00 AAA 5,343,750 Series 2002, 5.250%, 4/01/23 - FSA Insured 2,700 University of Illinois, Certificates of Participation, Utility 8/11 at 100.00 AAA 2,892,888 Infrastructure Projects, Series 2001A, 5.000%, 8/15/20 (Pre-refunded to 8/15/11) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 17.0% (11.4% OF TOTAL INVESTMENTS) 3,380 Evansville, Indiana, Sewerage Works Revenue Refunding Bonds, 7/13 at 100.00 AAA 3,539,671 Series 2003A, 5.000%, 7/01/20 - AMBAC Insured Indiana Bond Bank, Special Program Bonds, Hendricks County Redevelopment District, Series 2002D: 2,500 5.375%, 4/01/23 - AMBAC Insured 4/12 at 100.00 AAA 2,671,750 7,075 5.250%, 4/01/26 - AMBAC Insured 4/12 at 100.00 AAA 7,522,777 7,000 5.250%, 4/01/30 - AMBAC Insured 4/12 at 100.00 AAA 7,364,770 10,000 Indiana Health Facility Financing Authority, Hospital Revenue 7/12 at 100.00 AAA 10,360,200 Bonds, Marion General Hospital, Series 2002, 5.250%, 7/01/32 - AMBAC Insured 25,000 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 26,189,750 Waterworks Project, Series 2002A, 5.250%, 7/01/33 - MBIA Insured New Albany-Floyd County School Building Corporation, Indiana, First Mortgage Bonds, Series 2002: 2,500 5.750%, 7/15/17 (Pre-refunded to 7/15/12) - FGIC Insured 7/12 at 100.00 AAA 2,795,900 3,810 5.750%, 7/15/20 (Pre-refunded to 7/15/12) - FGIC Insured 7/12 at 100.00 AAA 4,260,952 55 Nuveen Insured Dividend Advantage Municipal Fund (NVG) (continued) Portfolio of INVESTMENTS October 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ INDIANA (continued) Northern Wells Community School Building Corporation, Wells County, Indiana, First Mortgage Bonds, Series 2001: $ 420 5.250%, 1/15/19 - FGIC Insured 7/12 at 100.00 AAA $ 444,835 430 5.250%, 7/15/19 - FGIC Insured 7/12 at 100.00 AAA 456,097 1,675 5.400%, 7/15/23 - FGIC Insured 7/12 at 100.00 AAA 1,796,856 6,960 Valparaiso Middle School Building Corporation, Indiana, 1/13 at 100.00 AAA 7,206,314 First Mortgage Refunding Bonds, Series 2002, 5.000%, 7/15/24 - MBIA Insured 2,490 Whitley County Middle School Building Corporation, Columbia 7/13 at 100.00 AAA 2,621,497 City, Indiana, First Mortgage Bonds, Series 2003, 5.000%, 1/15/18 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 0.7% (0.5% OF TOTAL INVESTMENTS) 3,085 New Orleans, Louisiana, General Obligation Refunding Bonds, 9/12 at 100.00 AAA 3,187,607 Series 2002, 5.125%, 9/01/21 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 3.5% (2.4% OF TOTAL INVESTMENTS) 5,000 Massachusetts, General Obligation Bonds, Consolidated Loan, 8/14 at 100.00 AAA 5,352,450 Series 2004B, 5.000%, 8/01/22 (Pre-refunded to 8/01/14) - AMBAC Insured 10,000 Massachusetts, Special Obligation Refunding Notes, Federal No Opt. Call Aaa 10,692,900 Highway Grant Anticipation Note Program, Series 2003A, 5.000%, 12/15/13 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 1.5% (1.0% OF TOTAL INVESTMENTS) 6,200 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 6,801,214 Series 1999A, 5.750%, 7/01/26 (Pre-refunded to 1/01/10) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 2.5% (1.6% OF TOTAL INVESTMENTS) 1,600 St. Louis County Pattonville School District R3, Missouri, 3/14 at 100.00 AAA 1,721,088 General Obligation Bonds, Series 2004, 5.250%, 3/01/19 - FSA Insured 8,735 St. Louis, Missouri, Airport Revenue Bonds, Airport 7/11 at 100.00 AAA 9,460,442 Development Program, Series 2001A, 5.250%, 7/01/31 (Pre-refunded to 7/01/11) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 0.5% (0.3% OF TOTAL INVESTMENTS) Municipal Energy Agency of Nebraska, Power Supply System Revenue Bonds, Series 2003A: 1,000 5.250%, 4/01/20 - FSA Insured 4/13 at 100.00 AAA 1,072,210 1,000 5.250%, 4/01/21 - FSA Insured 4/13 at 100.00 AAA 1,072,210 ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 4.3% (2.9% OF TOTAL INVESTMENTS) 9,810 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA 10,255,080 Bonds, Series 2002C, 5.000%, 6/15/21 - MBIA Insured 8,750 Truckee Meadows Water Authority, Nevada, Water Revenue 7/11 at 100.00 AAA 9,158,188 Bonds, Series 2001A, 5.250%, 7/01/34 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 0.6% (0.4% OF TOTAL INVESTMENTS) 2,345 Bernards Township School District, Somerset County, 1/14 at 100.00 AAA 2,509,408 New Jersey, General Obligation Bonds, Series 2004, 5.000%, 1/01/15 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 2.9% (1.9% OF TOTAL INVESTMENTS) 10,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA 10,295,600 Transportation Revenue Refunding Bonds, Series 2002A, 5.000%, 11/15/30 - FSA Insured 1,500 Metropolitan Transportation Authority, New York, 11/15 at 100.00 AAA 1,559,400 Transportation Revenue Bonds, Series 2005B, 5.000%, 11/15/30 - AMBAC Insured 1,120 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,167,510 Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/23 - FGIC Insured 56 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 0.6% (0.4% OF TOTAL INVESTMENTS) $ 2,435 North Carolina Medical Care Commission, FHA-Insured 10/13 at 100.00 AAA $ 2,642,998 Mortgage Revenue Bonds, Betsy Johnson Regional Hospital Project, Series 2003, 5.375%, 10/01/24 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 3.4% (2.3% OF TOTAL INVESTMENTS) 4,725 Clackamas County School District 62, Oregon City, Oregon, 6/14 at 100.00 AAA 5,065,436 General Obligation Bonds, Series 2004, 5.000%, 6/15/15 - FSA Insured Oregon, General Obligation Veterans Welfare Bonds, Series 82: 5,900 5.375%, 12/01/31 12/11 at 100.00 AA- 6,025,434 2,750 5.500%, 12/01/42 12/11 at 100.00 AA- 2,808,355 1,615 Oregon Department of Administrative Services, State Lottery 4/14 at 100.00 AAA 1,716,939 Revenue Bonds, Series 2004A, 5.000%, 4/01/17 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 5.0% (3.3% OF TOTAL INVESTMENTS) 4,500 Allegheny County, Pennsylvania, Airport Revenue Refunding No Opt. Call AAA 4,839,570 Bonds, Pittsburgh International Airport, Series 1997A, 5.750%, 1/01/13 (Alternative Minimum Tax) - MBIA Insured 5,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/08 at 100.00 AAA 5,291,950 Bonds, University of Pennsylvania, Series 1998, 5.500%, 7/15/38 (Pre-refunded to 7/15/08) - MBIA Insured 1,000 Pennsylvania Higher Educational Facilities Authority, Revenue 11/13 at 100.00 AA 1,054,730 Bonds, Lycoming College, Series 2003-AA2, 5.250%, 11/01/16 - RAAI Insured Philadelphia, Pennsylvania, General Obligation Bonds, Series 2003A: 3,090 5.250%, 2/15/14 - XLCA Insured 2/13 at 100.00 AAA 3,317,795 1,000 5.250%, 2/15/15 - XLCA Insured 2/13 at 100.00 AAA 1,067,870 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue Bonds, Series 2003B: 3,540 5.250%, 11/15/16 - FSA Insured 11/13 at 100.00 AAA 3,770,171 2,000 5.250%, 11/15/18 - FSA Insured 11/13 at 100.00 AAA 2,120,280 1,000 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 1,039,600 Revenue Bonds, Philadelphia School District, Series 2003, 5.000%, 6/01/23 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 0.8% (0.5% OF TOTAL INVESTMENTS) Greenville, South Carolina, Tax Increment Revenue Improvement Bonds, Series 2003: 1,000 5.500%, 4/01/17 - MBIA Insured 4/13 at 100.00 AAA 1,098,780 2,300 5.000%, 4/01/21 - MBIA Insured 4/13 at 100.00 AAA 2,403,615 ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 9.2% (6.2% OF TOTAL INVESTMENTS) 10,000 Memphis-Shelby County Sports Authority, Tennessee, Revenue 11/12 at 100.00 AAA 10,390,000 Bonds, Memphis Arena, Series 2002A, 5.125%, 11/01/28 - AMBAC Insured 10,000 Memphis-Shelby County Sports Authority, Tennessee, Revenue 11/12 at 100.00 AAA 10,377,200 Bonds, Memphis Arena, Series 2002B, 5.125%, 11/01/29 - AMBAC Insured Memphis, Tennessee, Sanitary Sewerage System Revenue Bonds, Series 2004: 1,495 5.000%, 10/01/19 - FSA Insured 10/14 at 100.00 AAA 1,580,290 1,455 5.000%, 10/01/20 - FSA Insured 10/14 at 100.00 AAA 1,533,585 1,955 5.000%, 10/01/21 - FSA Insured 10/14 at 100.00 AAA 2,057,618 15,195 Tennessee State School Bond Authority, Higher Educational 5/12 at 100.00 AAA 15,950,647 Facilities Second Program Bonds, Series 2002A, 5.250%, 5/01/32 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 27.4% (18.4% OF TOTAL INVESTMENTS) 3,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 AAA 3,799,985 Refunding and Improvement Bonds, Series 2001A, 5.750%, 11/01/13 (Alternative Minimum Tax) - FGIC Insured 10,000 Gainesville Hospital District, Texas, Limited Tax General 8/11 at 100.00 AAA 10,381,000 Obligation Bonds, Series 2002, 5.375%, 8/15/32 - MBIA Insured 3,645 Galveston, Texas, General Obligation Refunding Bonds, No Opt. Call AAA 3,851,198 Series 2001A, 5.250%, 5/01/21 - AMBAC Insured 57 Nuveen Insured Dividend Advantage Municipal Fund (NVG) (continued) Portfolio of INVESTMENTS October 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) Harris County Health Facilities Development Corporation, Texas, Thermal Utility Revenue Bonds, TECO Project, Series 2003: $ 2,240 5.000%, 11/15/16 - MBIA Insured 11/13 at 100.00 AAA $ 2,347,139 2,355 5.000%, 11/15/17 - MBIA Insured 11/13 at 100.00 AAA 2,459,491 13,000 Houston Area Water Corporation, Texas, Contract Revenue 3/12 at 100.00 AAA 13,363,220 Bonds, Northeast Water Purification Plant, Series 2002, 5.125%, 3/01/32 - FGIC Insured 2,500 Houston Higher Education Finance Corporation, Texas, Revenue 11/09 at 101.00 AAA 2,646,650 Bonds, Rice University, Series 1999A, 5.375%, 11/15/29 1,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AAA 1,063,240 Bonds, Series 2004A, 5.250%, 5/15/24 - FGIC Insured 4,345 San Antonio, Texas, Water System Senior Lien Revenue 5/12 at 100.00 AAA 4,733,617 Refunding Bonds, Series 2002, 5.500%, 5/15/17 - FSA Insured 9,145 Texas, General Obligation Bonds, Veterans Housing Assistance 6/12 at 100.00 Aa1 9,486,840 Program Fund II, Series 2002A-1, 5.250%, 12/01/22 (Alternative Minimum Tax) 6,110 Texas Department of Housing and Community Affairs, 7/11 at 100.00 AAA 6,356,294 Residential Mortgage Revenue Bonds, Series 2001A, 5.350%, 7/01/33 (Alternative Minimum Tax) Texas Public Finance Authority, Revenue Bonds, Texas Southern University Financing System, Series 2002: 3,520 5.125%, 11/01/20 - MBIA Insured 5/12 at 100.00 Aaa 3,726,730 3,520 5.125%, 11/01/21 - MBIA Insured 5/12 at 100.00 Aaa 3,715,430 8,635 Texas Department of Housing and Community Affairs, Single 3/12 at 100.00 AAA 8,875,744 Family Mortgage Bonds, Series 2002B, 5.550%, 9/01/33 (Alternative Minimum Tax) - MBIA Insured Texas Student Housing Authority, Revenue Bonds, Austin Project, Senior Series 2001A: 9,400 5.375%, 1/01/23 - MBIA Insured 1/12 at 102.00 Aaa 10,017,204 11,665 5.500%, 1/01/33 - MBIA Insured 1/12 at 102.00 Aaa 12,556,673 5,000 Texas Water Development Board, Senior Lien State Revolving 1/10 at 100.00 AAA 5,286,000 Fund Revenue Bonds, Series 1999B, 5.250%, 7/15/17 Williamson County, Texas, General Obligation Bonds, Series 2002: 3,500 5.200%, 2/15/21 - FSA Insured 2/12 at 100.00 AAA 3,708,705 3,000 5.250%, 2/15/22 - FSA Insured 2/12 at 100.00 AAA 3,193,110 7,340 5.250%, 2/15/23 - FSA Insured 2/12 at 100.00 AAA 7,804,989 5,000 5.250%, 2/15/25 - FSA Insured 2/12 at 100.00 AAA 5,312,200 ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 14.1% (9.4% OF TOTAL INVESTMENTS) 7,675 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 8,354,084 Bonds, Nuclear Project 1, Series 2002A, 5.500%, 7/01/15 - MBIA Insured 6,600 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 7,067,478 Bonds, Columbia Generating Station - Nuclear Project 2, Series 2002B, 5.350%, 7/01/18 - FSA Insured 2,200 King County School District 414, Lake Washington, Washington, 12/14 at 100.00 AAA 2,337,676 General Obligation Bonds, Series 2004, 5.000%, 12/01/16 - FSA Insured 2,500 Port of Seattle, Washington, Revenue Refunding Bonds, 11/12 at 100.00 AAA 2,722,650 Series 2002D, 5.750%, 11/01/15 (Alternative Minimum Tax) - FGIC Insured 2,200 Snohomish County School District 2, Everett, Washington, 12/13 at 100.00 AAA 2,330,328 General Obligation Bonds, Series 2003B, 5.000%, 6/01/17 - FSA Insured 3,255 Thurston and Pierce Counties School District, Washington, 6/13 at 100.00 Aaa 3,501,143 General Obligation Bonds, Yelm Community Schools, Series 2003, 5.250%, 12/01/16 - FSA Insured Washington State Economic Development Finance Authority, Wastewater Revenue Bonds, LOTT Project, Series 2002: 2,000 5.500%, 6/01/17 - AMBAC Insured 6/12 at 100.00 Aaa 2,182,340 4,325 5.125%, 6/01/22 - AMBAC Insured 6/12 at 100.00 Aaa 4,550,073 15,000 Washington State Healthcare Facilities Authority, Revenue 8/13 at 102.00 AAA 15,377,250 Bonds, Harrison Memorial Hospital, Series 1998, 5.000%, 8/15/28 - AMBAC Insured 10,000 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 Aaa 10,206,600 Bonds, Children's Hospital and Regional Medical Center, Series 2001, 5.125%, 10/01/31 - AMBAC Insured 58 Nuveen Insured Dividend Advantage Municipal Fund (NVG) (continued) Portfolio of INVESTMENTS October 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON (continued) $ 5,170 Whitman County School District 267, Pullman, Washington, 6/12 at 100.00 Aaa $ 5,410,405 General Obligation Bonds, Series 2002, 5.000%, 12/01/20 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 3.2% (2.2% OF TOTAL INVESTMENTS) 1,890 Wisconsin Housing and Economic Development Authority, 3/12 at 100.00 AA 1,939,480 Home Ownership Revenue Bonds, Series 2002E, 5.250%, 9/01/22 (Alternative Minimum Tax) 11,950 Wisconsin, Transportation Revenue Refunding Bonds, 7/12 at 100.00 AAA 12,706,192 Series 2002-1, 5.125%, 7/01/18 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 644,405 Total Long-Term Investments (cost $646,146,379) - 149.4% 678,431,609 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.9% 8,586,151 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.3)% (233,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 454,017,760 ====================================================================================================================
At least 80% of the Fund's net assets (including net assets attributable to Preferred Shares) are invested in municipal securities that are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance which ensures the timely payment of principal and interest. Up to 20% of the Fund's net assets (including net assets attributable to Preferred Shares) may be invested in municipal securities that are (i) either backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities (also ensuring the timely payment of principal and interest), or (ii) rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, S&P or Fitch) or unrated but judged to be of comparable quality by the Adviser. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. See accompanying notes to financial statements. 59 Nuveen Insured Tax-Free Advantage Municipal Fund (NEA) Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 8.4% (5.6% OF TOTAL INVESTMENTS) $ 5,655 Colbert County-Northwest Health Care Authority, Alabama, 6/13 at 101.00 Baa3 $ 5,763,972 Revenue Bonds, Helen Keller Hospital, Series 2003, 5.750%, 6/01/27 3,100 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 5/12 at 102.00 AAA 3,340,312 Series 1998A, 5.400%, 6/01/22 - MBIA Insured 6,280 Jefferson County, Alabama, Sewer Revenue Capital 8/12 at 100.00 AAA 6,748,614 Improvement Warrants, Series 2002D, 5.000%, 2/01/32 (Pre-refunded to 8/01/12) - FGIC Insured 1,750 Montgomery, Alabama, General Obligation Warrants, 5/12 at 101.00 AAA 1,829,310 Series 2003, 5.000%, 5/01/21 - AMBAC Insured 4,500 Sheffield, Alabama, Electric Revenue Bonds, Series 2003, 7/13 at 100.00 Aaa 4,910,850 5.500%, 7/01/29 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 3.8% (2.5% OF TOTAL INVESTMENTS) 10,000 Maricopa County Pollution Control Corporation, Arizona, 11/12 at 100.00 AAA 10,268,500 Revenue Bonds, Arizona Public Service Company - Palo Verde Project, Series 2002A, 5.050%, 5/01/29 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 29.2% (19.3% OF TOTAL INVESTMENTS) 13,500 California, General Obligation Refunding Bonds, Series 2002, 4/12 at 100.00 AAA 14,115,735 5.250%, 4/01/30 - XLCA Insured 7,500 California, General Obligation Bonds, Series 2004, 4/14 at 100.00 AAA 7,725,600 5.000%, 4/01/31 - AMBAC Insured 26,300 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 27,000,895 Department of General Services, Capital East End Project, Series 2002A, 5.000%, 12/01/27 - AMBAC Insured 2,910 Cathedral City Public Financing Authority, California, 8/12 at 102.00 AAA 3,008,765 Tax Allocation Bonds, Housing Set-Aside, Series 2002D, 5.000%, 8/01/26 - MBIA Insured 2,500 Irvine Public Facilities and Infrastructure Authority, California, 3/06 at 103.00 AAA 2,555,925 Assessment Revenue Bonds, Series 2003C, 5.000%, 9/02/23 - AMBAC Insured 4,000 Montara Sanitation District, California, General Obligation 8/11 at 101.00 AAA 4,133,320 Bonds, Series 2003, 5.000%, 8/01/28 - FGIC Insured Plumas County, California, Certificates of Participation, Capital Improvement Program, Series 2003A: 1,130 5.250%, 6/01/19 - AMBAC Insured 6/13 at 101.00 AAA 1,214,196 1,255 5.250%, 6/01/21 - AMBAC Insured 6/13 at 101.00 AAA 1,342,097 1,210 Redding Joint Powers Financing Authority, California, Lease 3/13 at 100.00 AAA 1,245,973 Revenue Bonds, Capital Improvement Projects, Series 2003A, 5.000%, 3/01/23 - AMBAC Insured 3,750 Sacramento Municipal Utility District, California, Electric 8/13 at 100.00 AAA 3,875,550 Revenue Bonds, Series 2003R, 5.000%, 8/15/28 - MBIA Insured 1,500 San Diego Community College District, California, General 5/13 at 100.00 AAA 1,548,735 Obligation Bonds, Series 2003A, 5.000%, 5/01/28 - FSA Insured 3,000 San Jose Redevelopment Agency, California, Tax Allocation 8/10 at 101.00 AAA 3,055,110 Bonds, Merged Area Redevelopment Project, Series 2002, 5.000%, 8/01/32 - MBIA Insured 1,055 Turlock Irrigation District, California, Certificates of 1/13 at 100.00 AAA 1,082,715 Participation, Series 2003A, 5.000%, 1/01/28 - MBIA Insured 6,300 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 6,464,934 Projects, Series 2003A, 5.000%, 5/15/33 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 3.8% (2.6% OF TOTAL INVESTMENTS) Bowles Metropolitan District, Colorado, General Obligation Bonds, Series 2003: 4,300 5.500%, 12/01/23 - FSA Insured 12/13 at 100.00 AAA 4,735,332 3,750 5.500%, 12/01/28 - FSA Insured 12/13 at 100.00 AAA 4,107,975 1,450 Colorado Educational and Cultural Facilities Authority, 8/14 at 100.00 AAA 1,530,823 Charter School Revenue Bonds, Peak-to-Peak Charter School, Series 2004, 5.250%, 8/15/24 - XLCA Insured 60 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 1.2% (0.8% OF TOTAL INVESTMENTS) $ 3,000 Pinellas County Health Facilities Authority, Florida, Revenue 5/13 at 100.00 A1 $ 3,132,420 Bonds, Baycare Health System, Series 2003, 5.500%, 11/15/27 ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 1.5% (1.0% OF TOTAL INVESTMENTS) 3,825 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales 1/13 at 100.00 AAA 3,925,483 Tax Revenue Bonds, Second Indenture Series 2002, 5.000%, 7/01/32 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 3.8% (2.5% OF TOTAL INVESTMENTS) 905 Cook County School District 100, Berwyn South, Illinois, 12/13 at 100.00 Aaa 991,934 General Obligation Refunding Bonds, Series 2003B, 5.250%, 12/01/21 (Pre-refunded to 12/01/13) - FSA Insured Cook County School District 145, Arbor Park, Illinois, General Obligation Bonds, Series 2004: 3,285 5.125%, 12/01/20 - FSA Insured 12/14 at 100.00 Aaa 3,483,841 2,940 5.125%, 12/01/23 - FSA Insured 12/14 at 100.00 Aaa 3,099,877 2,500 Illinois Health Facilities Authority, Revenue Bonds, 7/13 at 100.00 A- 2,567,250 Lake Forest Hospital, Series 2003, 5.250%, 7/01/23 ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 8.8% (5.9% OF TOTAL INVESTMENTS) 2,500 Evansville, Indiana, Sewerage Works Revenue Refunding Bonds, Series 2003A, 5.000%, 7/01/23 - AMBAC Insured 7/13 at 100.00 AAA 2,599,875 2,190 Indiana Bond Bank, Advance Purchase Funding Bonds, 8/13 at 100.00 AAA 2,286,316 Common School Fund, Series 2003B, 5.000%, 8/01/19 - MBIA Insured 1,000 Indiana University, Student Fee Revenue Bonds, Series 2003O, 8/13 at 100.00 AAA 1,042,310 5.000%, 8/01/22 - FGIC Insured IPS Multi-School Building Corporation, Indiana, First Mortgage Revenue Bonds, Series 2003: 11,020 5.000%, 7/15/19 - MBIA Insured 7/13 at 100.00 AAA 11,572,322 6,000 5.000%, 7/15/20 - MBIA Insured 7/13 at 100.00 AAA 6,284,640 ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 2.4% (1.6% OF TOTAL INVESTMENTS) 6,250 Kansas Development Finance Authority, Board of Regents, 4/13 at 102.00 AAA 6,565,250 Revenue Bonds, Scientific Research and Development Facilities Projects, Series 2003C, 5.000%, 10/01/22 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 0.5% (0.3% OF TOTAL INVESTMENTS) Kentucky State Property and Buildings Commission, Revenue Refunding Bonds, Project 77, Series 2003: 340 5.000%, 8/01/23 (Pre-refunded to 8/01/13) - MBIA Insured 8/13 at 100.00 AAA 366,013 985 5.000%, 8/01/23 (Pre-refunded to 8/01/13) - MBIA Insured 8/13 at 100.00 AAA 1,060,362 ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 2.2% (1.5% OF TOTAL INVESTMENTS) 5,785 New Orleans, Louisiana, General Obligation Refunding Bonds, 12/12 at 100.00 AAA 6,040,350 Series 2002, 5.300%, 12/01/27 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 5.1% (3.4% OF TOTAL INVESTMENTS) 9,000 Massachusetts Bay Transportation Authority, Senior Sales 7/12 at 100.00 AAA 9,671,490 Tax Revenue Refunding Bonds, Series 2002A, 5.000%, 7/01/27 (Pre-refunded to 7/01/12) - FGIC Insured 1,125 Massachusetts Development Finance Authority, Revenue 9/13 at 100.00 A1 1,171,665 Bonds, Middlesex School, Series 2003, 5.125%, 9/01/23 3,000 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 3,035,250 System Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 11.6% (7.7% OF TOTAL INVESTMENTS) 6,130 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/13 at 100.00 AAA 6,386,663 Bonds, Series 2003A, 5.000%, 7/01/23 - MBIA Insured 4,465 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/13 at 100.00 AAA 4,661,103 Refunding Bonds, Series 2003C, 5.000%, 7/01/22 - MBIA Insured 61 Nuveen Insured Tax-Free Advantage Municipal Fund (NEA) (continued) Portfolio of INVESTMENTS October 31, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN (continued) $ 10,800 Michigan Strategic Fund, Limited Obligation Resource 12/12 at 100.00 AAA $ 11,221,632 Recovery Revenue Refunding Bonds, Detroit Edison Company, Series 2002D, 5.250%, 12/15/32 - XLCA Insured 2,250 Romulus Community Schools, Wayne County, Michigan, 5/11 at 100.00 AA 2,383,065 General Obligation Refunding Bonds, Series 2001, 5.250%, 5/01/25 6,500 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 6,673,225 Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.000%, 12/01/30 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 1.1% (0.7% OF TOTAL INVESTMENTS) Clay County Public School District 53, Liberty, Missouri, General Obligation Bonds, Series 2004: 1,325 5.250%, 3/01/23 - FSA Insured 3/14 at 100.00 AAA 1,417,565 1,500 5.250%, 3/01/24 - FSA Insured 3/14 at 100.00 AAA 1,601,535 ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 1.9% (1.3% OF TOTAL INVESTMENTS) 5,000 Lincoln, Nebraska, Sanitary Sewerage System Revenue 6/13 at 100.00 AAA 5,164,450 Refunding Bonds, Series 2003, 5.000%, 6/15/28 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 0.9% (0.6% OF TOTAL INVESTMENTS) 2,315 Clark County, Nevada, Subordinate Lien Airport Revenue 7/11 at 100.00 AAA 2,501,381 Bonds, Series 2001B, 5.200%, 7/01/31 (Pre-refunded to 7/01/11) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 0.8% (0.5% OF TOTAL INVESTMENTS) 1,975 New Mexico State University, Revenue Bonds, Series 2004, 4/14 at 100.00 AAA 2,080,959 5.000%, 4/01/19 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 9.5% (6.3% OF TOTAL INVESTMENTS) 25,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA 25,693,250 Transportation Revenue Refunding Bonds, Series 2002F, 5.000%, 11/15/31 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 3.3% (2.2% OF TOTAL INVESTMENTS) 8,700 North Carolina Medical Care Commission, Revenue Bonds, 10/13 at 100.00 AA 9,014,331 Maria Parham Medical Center, Series 2003, 5.375%, 10/01/33 - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 3.6% (2.4% OF TOTAL INVESTMENTS) 9,350 Oregon Health Sciences University, Revenue Bonds, 1/13 at 100.00 AAA 9,618,719 Series 2002A, 5.000%, 7/01/32 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 8.8% (5.8% OF TOTAL INVESTMENTS) 3,000 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 BBB 3,071,610 Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem, Series 2003, 5.375%, 8/15/33 2,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 8/13 at 100.00 AAA 2,050,860 General Ordinance, Fourth Series 1998, 5.000%, 8/01/32 - FSA Insured Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, Series 1997A: 925 5.125%, 8/01/27 - AMBAC Insured 8/07 at 102.00 AAA 959,031 4,075 5.125%, 8/01/27 - AMBAC Insured 8/07 at 102.00 AAA 4,247,291 13,000 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 13,333,450 Revenue Bonds, Philadelphia School District, Series 2003, 5.000%, 6/01/33 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 7.4% (4.9% OF TOTAL INVESTMENTS) 5,000 Florence County, South Carolina, Hospital Revenue Bonds, 11/14 at 100.00 AAA 5,324,500 McLeod Regional Medical Center, Series 2004A, 5.250%, 11/01/23 - FSA Insured Greenville County School District, South Carolina, Installment Purchase Revenue Bonds, Series 2003: 3,000 5.000%, 12/01/22 12/13 at 100.00 AA- 3,092,400 1,785 5.000%, 12/01/23 12/13 at 100.00 AA- 1,836,319 62 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA (continued) $ 1,365 Myrtle Beach, South Carolina, Water and Sewerage System 3/13 at 100.00 AAA $ 1,478,677 Revenue Refunding Bonds, Series 2003, 5.375%, 3/01/19 - FGIC Insured 8,000 South Carolina Transportation Infrastructure Bank, Revenue 10/12 at 100.00 Aaa 8,194,560 Bonds, Series 2002A, 5.000%, 10/01/33 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 13.2% (8.7% OF TOTAL INVESTMENTS) 7,975 Fort Bend Independent School District, Fort Bend County, 8/10 at 100.00 AAA 8,224,937 Texas, General Obligation Bonds, Series 2000, 5.000%, 8/15/25 12,500 Grand Prairie Independent School District, Dallas County, 2/13 at 100.00 AAA 12,901,625 Texas, General Obligation Bonds, Series 2003, 5.125%, 2/15/31 - FSA Insured 5,515 Houston, Texas, General Obligation Refunding Bonds, 3/12 at 100.00 AAA 5,881,141 Series 2002, 5.250%, 3/01/20 - MBIA Insured 2,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AAA 2,123,540 Bonds, Series 2004A, 5.250%, 5/15/25 - MBIA Insured 5,850 Katy Independent School District, Harris, Fort Bend and 2/12 at 100.00 AAA 6,154,902 Waller Counties, Texas, General Obligation Bonds, Series 2002A, 5.125%, 2/15/18 ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.6% (0.4% OF TOTAL INVESTMENTS) 1,500 Hampton, Virginia, Revenue Bonds, Convention Center 1/13 at 100.00 AAA 1,556,115 Project, Series 2002, 5.125%, 1/15/28 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 9.2% (6.1% OF TOTAL INVESTMENTS) 4,945 Broadway Office Properties, King County, Washington, Lease 12/12 at 100.00 AAA 5,049,735 Revenue Bonds, Washington Project, Series 2002, 5.000%, 12/01/31 - MBIA Insured 5,250 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AAA 5,391,225 Consolidated System Revenue Bonds, Series 2002C, 5.125%, 7/01/33 - AMBAC Insured 2,135 Kitsap County Consolidated Housing Authority, Washington, 7/13 at 100.00 Aaa 2,205,540 Revenue Bonds, Bremerton Government Center, Series 2003, 5.000%, 7/01/23 - MBIA Insured 1,935 Pierce County School District 343, Dieringer, Washington, 6/13 at 100.00 Aaa 2,077,416 General Obligation Refunding Bonds, Series 2003, 5.250%, 12/01/17 - FGIC Insured 9,670 Washington, General Obligation Bonds, Series 2003D, 6/13 at 100.00 AAA 10,097,414 5.000%, 12/01/21 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 1.2% (0.8% OF TOTAL INVESTMENTS) 3,000 West Virginia State Building Commission, Lease Revenue No Opt. Call AAA 3,319,440 Refunding Bonds, Regional Jail and Corrections Facility, Series 1998A, 5.375%, 7/01/21 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 6.7% (4.5% OF TOTAL INVESTMENTS) 1,190 Sun Prairie Area School District, Dane County, Wisconsin, 3/14 at 100.00 Aaa 1,264,554 General Obligation Bonds, Series 2004C, 5.250%, 3/01/24 - FSA Insured 4,750 Wisconsin Health and Educational Facilities Authority, Revenue 8/08 at 102.00 AAA 4,941,425 Refunding Bonds, Wausau Hospital Inc., Series 1998A, 5.125%, 8/15/20 - AMBAC Insured 3,000 Wisconsin Health and Educational Facilities Authority, Revenue No Opt. Call AAA 3,417,060 Bonds, Meriter Hospital Inc., Series 1992A, 6.000%, 12/01/22 - FGIC Insured 3,600 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A 3,636,576 Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.125%, 8/15/33 4,605 Wisconsin Health and Educational Facilities Authority, Revenue 9/13 at 100.00 A- 4,867,761 Bonds, Franciscan Sisters of Christian Charity Healthcare Ministry, Series 2003A, 5.875%, 9/01/33 ------------------------------------------------------------------------------------------------------------------------------------ $ 389,225 Total Long-Term Investments (cost $390,134,775) - 150.5% 405,618,868 =============----------------------------------------------------------------------------------------------------------------------- 63 Nuveen Insured Tax-Free Advantage Municipal Fund (NEA) (continued) Portfolio of INVESTMENTS October 31, 2005 PRINCIPAL MARKET AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENTS - 0.1% (0.1% OF TOTAL INVESTMENTS) $ 400 Idaho Health Facilities Authority, Revenue Bonds, St. Luke's A-1+ $ 400,000 Regional Medical Center, Variable Rate Demand Obligations, Series 2005, 2.730%, 7/01/35 - FSA Insured + ------------------------------------------------------------------------------------------------------------------------------------ $ 400 Total Short-Term Investments (cost $400,000) 400,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $390,534,775) - 150.6% 406,018,868 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.8% 7,595,053 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (53.4)% (144,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 269,613,921 ====================================================================================================================
FORWARD SWAPS OUTSTANDING AT OCTOBER 31, 2005:
FIXED RATE FLOATING RATE FLOATING PAID BY FIXED RATE RECEIVED BY RATE NOTIONAL THE FUND PAYMENT THE FUND PAYMENT EFFECTIVE TERMINATION UNREALIZED COUNTERPARTY AMOUNT (ANNUALIZED) FREQUENCY BASED ON FREQUENCY DATE (2) DATE APPRECIATION ------------------------------------------------------------------------------------------------------------------------------------ Citigroup $13,500,000 4.652% Semi-annually 3-month USD-LIBOR Quarterly 2/22/06 2/22/26 $1,012,217 Citigroup 3,000,000 4.699% Semi-annually 3-month USD-LIBOR Quarterly 2/27/06 2/27/26 207,830 JPMorgan 9,000,000 5.075% Semi-annually 3-month USD-LIBOR Quarterly 2/22/06 2/22/26 209,960 ------------------------------------------------------------------------------------------------------------------------------------ $1,430,007 ------------------------------------------------------------------------------------------------------------------------------------
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates) At least 80% of the Fund's net assets (including net assets attributable to Preferred Shares) are invested in municipal securities that are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance which ensures the timely payment of principal and interest. Up to 20% of the Fund's net assets (including net assets attributable to Preferred Shares) may be invested in municipal securities that are (i) either backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities (also ensuring the timely payment of principal and interest), or (ii) rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, S&P or Fitch) or unrated but judged to be of comparable quality by the Adviser. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. * Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. The rate disclosed is that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 64 Statement of ASSETS AND LIABILITIES October 31, 2005
INSURED INSURED INSURED INSURED INSURED PREMIER PREMIUM DIVIDEND TAX-FREE QUALITY OPPORTUNITY INSURED INCOME INCOME 2 ADVANTAGE ADVANTAGE (NQI) (NIO) (NIF) (NPX) (NVG) (NEA) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at market value (cost $843,130,570, $1,810,645,575, $429,005,598, $751,836,352, $646,146,379, $390,534,775, respectively) $887,216,397 $1,911,596,344 $453,688,446 $779,176,291 $678,431,609 $406,018,868 Cash -- -- 43,108 -- -- 55,407 Receivables: Interest 12,323,427 29,676,912 7,615,176 13,434,906 9,860,582 6,340,142 Investments sold 16,173,470 36,230,617 35,000 -- 1,195,000 -- Unrealized appreciation on swaps -- -- -- -- -- 1,430,007 Other assets 71,131 118,809 40,826 52,610 32,879 13,923 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 915,784,425 1,977,622,682 461,422,556 792,663,807 689,520,070 413,858,347 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 435,925 9,766,399 -- 2,464,035 2,097,169 -- Payable for investments purchased 10,786,598 31,575,829 2,410,584 -- -- -- Accrued expenses: Management fees 474,434 995,243 245,114 415,535 186,924 108,148 Other 211,424 446,093 112,271 298,625 133,592 83,414 Preferred share dividends payable 98,831 201,211 30,950 78,094 84,625 52,864 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 12,007,212 42,984,775 2,798,919 3,256,289 2,502,310 244,426 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 318,000,000 680,000,000 161,000,000 268,900,000 233,000,000 144,000,000 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $585,777,213 $1,254,637,907 $297,623,637 $520,507,518 $454,017,760 $269,613,921 ==================================================================================================================================== Common shares outstanding 38,268,278 81,138,036 19,419,608 37,353,512 29,807,822 18,515,282 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 15.31 $ 15.46 $ 15.33 $ 13.93 $ 15.23 $ 14.56 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 382,683 $ 811,380 $ 194,196 $ 373,535 $ 298,078 $ 185,153 Paid-in surplus 534,120,690 1,128,874,275 269,467,179 491,941,518 423,484,088 261,528,621 Undistributed (Over-distribution of) net investment income 3,658,654 10,377,919 1,063,304 2,128,188 1,649,541 (198,057) Accumulated net realized gain (loss) from investments and forward swaps 3,529,359 13,623,564 2,216,110 (1,275,662) (3,699,177) (8,815,896) Net unrealized appreciation of investments and forward swaps 44,085,827 100,950,769 24,682,848 27,339,939 32,285,230 16,914,100 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $585,777,213 $1,254,637,907 $297,623,637 $520,507,518 $454,017,760 $269,613,921 ==================================================================================================================================== Authorized shares: Common 200,000,000 200,000,000 200,000,000 Unlimited Unlimited Unlimited Preferred 1,000,000 1,000,000 1,000,000 Unlimited Unlimited Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 65 Statement of OPERATIONS Year Ended October 31, 2005
INSURED INSURED INSURED INSURED INSURED PREMIER PREMIUM DIVIDEND TAX-FREE QUALITY OPPORTUNITY INSURED INCOME INCOME 2 ADVANTAGE ADVANTAGE (NQI) (NIO) (NIF) (NPX) (NVG) (NEA) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 46,546,126 $ 96,849,869 $ 23,231,766 $ 39,330,732 $ 33,083,910 $19,913,246 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 5,645,119 11,881,859 2,924,904 4,960,083 4,325,015 2,627,330 Preferred shares - auction fees 795,000 1,700,000 402,500 672,250 582,500 360,000 Preferred shares - dividend disbursing agent fees 50,000 70,000 30,000 50,000 30,000 20,000 Shareholders' servicing agent fees and expenses 98,112 159,471 40,299 57,420 9,147 5,638 Custodian's fees and expenses 216,695 429,401 105,753 184,884 155,165 99,707 Directors'/Trustees' fees and expenses 15,605 35,708 8,179 13,731 11,790 7,106 Professional fees 40,127 78,359 20,498 28,217 33,041 23,823 Shareholders' reports - printing and mailing expenses 76,990 168,004 41,953 68,317 61,290 39,015 Stock exchange listing fees 17,428 31,814 10,619 14,713 2,538 1,576 Investor relations expense 121,593 262,400 62,486 103,865 93,510 53,990 Portfolio insurance expense 12,933 33,449 -- -- -- -- Other expenses 51,217 100,360 27,561 42,532 40,659 30,157 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 7,140,819 14,950,825 3,674,752 6,196,012 5,344,655 3,268,342 Custodian fee credit (13,020) (18,842) (9,861) (12,895) (5,885) (4,026) Expense reimbursement -- -- -- -- (2,094,766) (1,339,983) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 7,127,799 14,931,983 3,664,891 6,183,117 3,244,004 1,924,333 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 39,418,327 81,917,886 19,566,875 33,147,615 29,839,906 17,988,913 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 3,528,017 14,031,164 2,211,037 10,740,879 (174,429) 299,519 Net realized gain (loss) from forward swaps -- -- -- -- (3,525,412) (9,115,854) Change in net unrealized appreciation (depreciation) of investments (18,408,001) (53,551,554) (12,070,538) (26,834,953) (10,512,717) (2,445,575) Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- 2,750,245 7,736,635 ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) (14,879,984) (39,520,390) (9,859,501) (16,094,074) (11,462,313) (3,525,275) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (6,065,197) (13,081,165) (3,104,665) (5,295,715) (4,486,974) (2,741,233) From accumulated net realized gains from investments (159,181) (217,348) (127,563) -- (278,326) (14,037) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (6,224,378) (13,298,513) (3,232,228) (5,295,715) (4,765,300) (2,755,270) ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations $ 18,313,965 $ 29,098,983 $ 6,475,146 $ 11,757,826 $ 13,612,293 $11,708,368 ====================================================================================================================================
See accompanying notes to financial statements. 66 Statement of CHANGES IN NET ASSETS
INSURED QUALITY (NQI) INSURED OPPORTUNITY (NIO) ------------------------------ -------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 10/31/05 10/31/04 10/31/05 10/31/04 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 39,418,327 $ 41,214,190 $ 81,917,886 $ 84,808,402 Net realized gain (loss) from investments 3,528,017 2,202,219 14,031,164 2,845,723 Net realized gain (loss) from forward swaps -- -- -- -- Change in net unrealized appreciation (depreciation) of investments (18,408,001) 5,112,646 (53,551,554) 13,606,844 Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- Distributions to Preferred Shareholders: From net investment income (6,065,197) (2,891,716) (13,081,165) (6,198,825) From accumulated net realized gains from investments (159,181) (114,034) (217,348) (149,437) ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 18,313,965 45,523,305 29,098,983 94,912,707 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (36,927,040) (38,923,489) (74,809,273) (78,914,962) From accumulated net realized gains from investments (2,090,966) (1,766,378) (2,636,993) (2,358,124) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (39,018,006) (40,689,867) (77,446,266) (81,273,086) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares -- -- -- -- Net proceeds from shares issued to shareholders due to reinvestment of distributions 1,453,639 2,092,259 -- 1,258,836 Preferred shares offering costs -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions 1,453,639 2,092,259 -- 1,258,836 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (19,250,402) 6,925,697 (48,347,283) 14,898,457 Net assets applicable to Common shares at the beginning of year 605,027,615 598,101,918 1,302,985,190 1,288,086,733 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $585,777,213 $605,027,615 $1,254,637,907 $1,302,985,190 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 3,658,654 $ 7,235,743 $ 10,377,919 $ 16,469,788 ====================================================================================================================================
See accompanying notes to financial statements. 67 Statement of CHANGES IN NET ASSETS (continued)
PREMIER INSURED INSURED PREMIUM INCOME (NIF) INCOME 2 (NPX) ------------------------------ -------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 10/31/05 10/31/04 10/31/05 10/31/04 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 19,566,875 $ 19,991,132 $ 33,147,615 $ 34,776,494 Net realized gain (loss) from investments 2,211,037 1,804,462 10,740,879 4,743,922 Net realized gain (loss) from forward swaps -- -- -- -- Change in net unrealized appreciation (depreciation) of investments (12,070,538) 5,140,974 (26,834,953) 3,531,341 Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- Distributions to Preferred Shareholders: From net investment income (3,104,665) (1,461,536) (5,295,715) (2,517,974) From accumulated net realized gains from investments (127,563) (26,521) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 6,475,146 25,448,511 11,757,826 40,533,783 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (17,999,191) (18,972,928) (30,947,388) (32,708,575) From accumulated net realized gains from investments (1,655,759) (373,855) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (19,654,950) (19,346,783) (30,947,388) (32,708,575) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares -- -- -- -- Net proceeds from shares issued to shareholders due to reinvestment of distributions 136,954 653,067 -- 897,328 Preferred shares offering costs -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions 136,954 653,067 -- 897,328 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (13,042,850) 6,754,795 (19,189,562) 8,722,536 Net assets applicable to Common shares at the beginning of year 310,666,487 303,911,692 539,697,080 530,974,544 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $297,623,637 $310,666,487 $520,507,518 $539,697,080 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 1,063,304 $ 2,607,073 $ 2,128,188 $ 5,255,974 ====================================================================================================================================
See accompanying notes to financial statements. 68
INSURED DIVIDEND INSURED TAX-FREE ADVANTAGE (NVG) ADVANTAGE (NEA) ------------------------------ -------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 10/31/05 10/31/04 10/31/05 10/31/04 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 29,839,906 $ 30,289,838 $ 17,988,913 $ 18,267,196 Net realized gain (loss) from investments (174,429) 3,840,906 299,519 192,046 Net realized gain (loss) from forward swaps (3,525,412) -- (9,115,854) -- Change in net unrealized appreciation (depreciation) of investments (10,512,717) 11,761,364 (2,445,575) 10,225,971 Change in net unrealized appreciation (depreciation) of forward swaps 2,750,245 (2,750,245) 7,736,635 (6,306,628) Distributions to Preferred Shareholders: From net investment income (4,486,974) (2,131,112) (2,741,233) (1,362,594) From accumulated net realized gains from investments (278,326) (140,030) (14,037) (7,435) ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 13,612,293 40,870,721 11,708,368 21,008,556 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (26,409,732) (27,722,483) (15,062,183) (17,104,309) From accumulated net realized gains from investments (3,573,972) (2,127,005) (179,616) (98,078) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (29,983,704) (29,849,488) (15,241,799) (17,202,387) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares -- -- -- 114,799 Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- 35,393 78,604 Preferred shares offering costs -- (108) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- (108) 35,393 193,403 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (16,371,411) 11,021,125 (3,498,038) 3,999,572 Net assets applicable to Common shares at the beginning of year 470,389,171 459,368,046 273,111,959 269,112,387 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $454,017,760 $470,389,171 $269,613,921 $273,111,959 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 1,649,541 $ 2,707,005 $ (198,057) $ (383,115) ====================================================================================================================================
See accompanying notes to financial statements. 69 Notes to FINANCIAL STATEMENTS 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The funds (the "Funds") covered in this report and their corresponding Common share stock exchange symbols are Nuveen Insured Quality Municipal Fund, Inc. (NQI), Nuveen Insured Municipal Opportunity Fund, Inc. (NIO), Nuveen Premier Insured Municipal Income Fund, Inc. (NIF), Nuveen Insured Premium Income Municipal Fund 2 (NPX), Nuveen Insured Dividend Advantage Municipal Fund (NVG) and Nuveen Insured Tax-Free Advantage Municipal Fund (NEA). Common shares of Insured Quality (NQI), Insured Opportunity (NIO), Premier Insured Income (NIF) and Insured Premium Income 2 (NPX) are traded on the New York Stock Exchange while Common shares of Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA) are traded on the American Stock Exchange. The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end, diversified management investment companies. Each Fund seeks to provide current income exempt from regular federal income tax, and in the case of Insured Tax-Free Advantage (NEA) the alternative minimum tax applicable to individuals, by investing primarily in a diversified portfolio of municipal obligations issued by state and local government authorities or certain U.S. territories. Effective January 1, 2005, Nuveen Advisory Corp. ("NAC"), the Funds' previous Adviser, and its affiliate, Nuveen Institutional Advisory Corp. ("NIAC"), were merged into Nuveen Asset Management ("NAM"), each wholly owned subsidiaries of Nuveen Investments, Inc. ("Nuveen"). As a result of the merger, NAM is now the Adviser to all funds previously advised by either NAC or NIAC. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles. Investment Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Directors/Trustees. When market price quotes are not readily available (which is usually the case for municipal securities), the pricing service establishes fair market value based on yields or prices of municipal bonds of comparable quality, type of issue, coupon, maturity and rating, indications of value from securities dealers, evaluations of anticipated cash flows or collateral and general market conditions. Prices of derivative investments are also provided by an independent pricing service approved by each Fund's Board of Directors/Trustees. If the pricing service is unable to supply a price for a municipal bond or derivative investment, each Fund may use a market price or fair market value quote provided by a major broker/dealer in such investments. If it is determined that the market price or fair market value for an investment are unavailable or inappropriate, the Board of Directors/Trustees of the Funds, or its designee, may establish a fair value for the investment. Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates market value. Investment Transactions Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method. Investments purchased on a when-issued and/or delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At October 31, 2005, Insured Quality (NQI) and Insured Opportunity (NIO) had outstanding when-issued and/or delayed delivery purchase commitments of $1,737,277 and $17,739,870, respectively. There were no such outstanding purchase commitments in any of the other Funds. Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any. Federal Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal income tax, and in the case of Insured Tax-Free Advantage (NEA) the alternative minimum tax applicable to individuals, to retain such tax-exempt status when distributed to shareholders of the Funds. All monthly tax-exempt income dividends paid during the fiscal year ended October 31, 2005, have been designated Exempt Interest Dividends. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation. 70 Dividends and Distributions to Common Shareholders Dividends from tax-exempt net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to Common shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles. Preferred Shares The Funds have issued and outstanding Preferred shares, $25,000 stated value per share, as a means of effecting financial leverage. Each Fund's Preferred shares are issued in more than one Series. The dividend rate paid by the Funds on each Series is determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and is payable at the end of each rate period. The number of Preferred shares outstanding, by Series and in total, for each Fund is as follows:
PREMIER INSURED INSURED INSURED INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE (NQI) (NIO) (NIF) (NPX) (NVG) (NEA) --------------------------------------------------------------------------------------------------------- Number of shares: Series M 2,600 4,000 -- 2,080 3,160 -- Series T 2,600 4,000 -- 2,200 3,080 2,880 Series W 2,600 4,000 840 2,080 -- 2,880 Series W2 -- 3,200 -- -- -- -- Series TH 2,320 4,000 2,800 2,200 3,080 -- Series TH2 -- 4,000 -- -- -- -- Series F 2,600 4,000 2,800 2,196 -- -- --------------------------------------------------------------------------------------------------------- Total 12,720 27,200 6,440 10,756 9,320 5,760 =========================================================================================================
Insurance Insured Quality (NQI), Insured Opportunity (NIO), Premier Insured Income (NIF) and Insured Premium Income 2 (NPX) invest only in municipal securities which are either covered by insurance or are backed by an escrow or trust account containing sufficient U.S. Government or U.S. Government agency securities, both of which ensure the timely payment of principal and interest. Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA) invest at least 80% of their net assets (including net assets attributable to Preferred shares) in municipal securities that are covered by insurance. Each Fund may also invest up to 20% of its net assets (including net assets attributable to Preferred shares) in municipal securities which are either (i) backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, or (ii) rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, S&P or Fitch) or unrated but judged to be of comparable quality by the Adviser. Each insured municipal security is covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance. Such insurance does not guarantee the market value of the municipal securities or the value of the Funds' Common shares. Original Issue Insurance and Secondary Market Insurance remain in effect as long as the municipal securities covered thereby remain outstanding and the insurer remains in business, regardless of whether the Funds ultimately dispose of such municipal securities. Consequently, the market value of the municipal securities covered by Original Issue Insurance or Secondary Market Insurance may reflect value attributable to the insurance. Portfolio Insurance, in contrast, is effective only while the municipal securities are held by the Funds. Accordingly, neither the prices used in determining the market value of the underlying municipal securities nor the Common share net asset value of the Funds include value, if any, attributable to the Portfolio Insurance. Each policy of the Portfolio Insurance does, however, give the Funds the right to obtain permanent insurance with respect to the municipal security covered by the Portfolio Insurance policy at the time of its sale. Forward Swap Transactions The Funds are authorized to invest in certain derivative financial instruments. The Funds' use of forward interest rate swap transactions is intended to mitigate the negative impact that an increase in long-term interest rates could have on Common share net asset value. Forward interest rate swap transactions involve each Fund's agreement with the counterparty to pay, in the future, a fixed rate payment in exchange for the counterparty paying the Fund a variable rate payment, the accruals for which would begin at a specified date in the future (the "effective date"). The amount of the payment obligation is based on the notional amount of the forward swap contract, and would increase or decrease in value based primarily on the extent to which long-term interest rates for bonds having a maturity of the swaps' termination date were to increase or decrease. The Funds may close out a contract prior to the effective date, at which point a realized gain or loss would be recognized. When a forward swap is terminated, it ordinarily does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash on a net basis. Each Fund intends, but is not obligated to, terminate its forward swaps before the effective date. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the credit risk associated with a counterparty failing to honor its commitment to pay any realized gain to the Fund upon termination. To minimize such credit risk, all counterparties are required to pledge collateral daily (based on the daily valuation of each swap) on behalf of each Fund with a value approximately equal to the amount of any unreal- 71 Notes to FINANCIAL STATEMENTS (continued) ized gain above a pre-determined threshold. Reciprocally, when any of the Funds have an unrealized loss on a swap contract, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate, either up or down, by at least the predetermined threshold amount. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Indemnifications Under the Funds' organizational documents, their Officers and Directors/Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates. 2. FUND SHARES Transactions in Common shares were as follows:
INSURED INSURED PREMIER INSURED QUALITY (NQI) OPPORTUNITY (NIO) INCOME (NIF) --------------------- ---------------------- --------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED 10/31/05 10/31/04 10/31/05 10/31/04 10/31/05 10/31/04 --------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions 91,214 126,022 -- 77,090 8,559 39,908 --------------------------------------------------------------------------------------------------------- INSURED INSURED INSURED PREMIUM INCOME 2 (NPX) DIVIDEND ADVANTAGE (NVG) TAX-FREE ADVANTAGE (NEA) ---------------------- ------------------------ ------------------------ YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED 10/31/05 10/31/04 10/31/05 10/31/04 10/31/05 10/31/04 --------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions -- 60,649 -- -- 2,359 5,076 ---------------------------------------------------------------------------------------------------------
3. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities during the fiscal year ended October 31, 2005, were as follows:
PREMIER INSURED INSURED INSURED INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE (NQI) (NIO) (NIF) (NPX) (NVG) (NEA) ------------------------------------------------------------------------------------------------------------ Purchases $191,466,550 $496,148,321 $91,416,503 $180,005,264 $10,703,714 $ 3,420,373 Sales and maturities 203,567,064 503,034,491 93,223,619 191,066,577 16,261,930 11,823,209 ============================================================================================================
72 4. INCOME TAX INFORMATION The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to the treatment of paydown gains and losses, timing differences in recognizing taxable market discount and timing differences in recognizing certain gains and losses on investment transactions. At October 31, 2005, the cost of investments was as follows:
PREMIER INSURED INSURED INSURED INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE (NQI) (NIO) (NIF) (NPX) (NVG) (NEA) ---------------------------------------------------------------------------------------------------------------- Cost of investments $842,742,486 $1,809,312,315 $428,952,715 $751,804,861 $648,449,352 $394,544,285 ================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments at October 31, 2005, were as follows:
PREMIER INSURED INSURED INSURED INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE (NQI) (NIO) (NIF) (NPX) (NVG) (NEA) ---------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $46,801,120 $105,492,670 $25,489,469 $30,833,872 $34,457,057 $ 15,510,717 Depreciation (2,327,209) (3,208,641) (753,738) (3,462,442) (4,474,800) (4,036,134) ---------------------------------------------------------------------------------------------------------------- Net unrealized appreciation of investments $44,473,911 $102,284,029 $24,735,731 $27,371,430 $29,982,257 $ 11,474,583 ================================================================================================================
The tax components of undistributed net investment income and net realized gains at October 31, 2005, were as follows:
PREMIER INSURED INSURED INSURED INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE (NQI) (NIO) (NIF) (NPX) (NVG) (NEA) ---------------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $6,201,252 $14,970,304 $2,420,156 $4,545,989 $3,696,503 $976,133 Undistributed net ordinary income ** -- 36,367 -- -- -- -- Undistributed net long-term capital gains 3,529,359 13,623,564 2,216,110 -- -- -- ================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on October 3, 2005, paid on November 1, 2005. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. The tax character of distributions paid during the fiscal years ended October 31, 2005 and October 31, 2004, was designated for purposes of the dividends paid deduction as follows:
PREMIER INSURED INSURED INSURED INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE 2005 (NQI) (NIO) (NIF) (NPX) (NVG) (NEA) ---------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $43,231,354 $88,622,431 $21,307,834 $36,572,931 $31,059,072 $18,006,667 Distributions from net ordinary income ** 425,383 -- 801,863 -- 320,955 -- Distributions from net long-term capital gains 1,943,044 2,854,341 981,459 -- 3,528,645 193,086 ================================================================================================================
PREMIER INSURED INSURED INSURED INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE 2004 (NQI) (NIO) (NIF) (NPX) (NVG) (NEA) ---------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $41,497,482 $84,945,305 $20,407,082 $35,184,856 $29,829,269 $18,503,309 Distributions from net ordinary income ** 264,316 78,388 -- -- 2,266,382 105,523 Distributions from net long-term capital gains 1,880,412 2,507,561 400,376 -- 1,939 -- ================================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. 73 Notes to FINANCIAL STATEMENTS (continued) At October 31, 2005, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied the carryforwards will expire as follows; INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE INCOME 2 ADVANTAGE ADVANTAGE (NPX) (NVG) (NEA) -------------------------------------------------------------------------------- Expiration year: 2008 $1,274,854 $ -- $ -- 2009 -- -- -- 2010 -- -- -- 2011 -- -- -- 2012 -- -- -- 2013 -- 1,257,089 4,779,762 -------------------------------------------------------------------------------- Total $1,274,854 $1,257,089 $4,779,762 ================================================================================ 5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Each Fund's management fee is separated into two components - a complex-level component, based on the aggregate amount of all fund assets managed by the Adviser, and a specific fund-level component, based only on the amount of assets within each individual fund. This pricing structure enables Nuveen fund shareholders to benefit from growth in the assets within each individual fund as well as from growth in the amount of complex-wide assets managed by the Adviser. The annual fund-level fee, payable monthly, for each Fund is based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows: INSURED QUALITY (NQI) INSURED OPPORTUNITY (NIO) AVERAGE DAILY NET ASSETS PREMIER INSURED INCOME (NIF) (INCLUDING NET ASSETS INSURED PREMIUM INCOME 2 (NPX) ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE -------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For the next $3 billion .3875 For net assets over $5 billion .3750 ================================================================================ AVERAGE DAILY NET ASSETS INSURED DIVIDEND ADVANTAGE (NVG) (INCLUDING NET ASSETS INSURED TAX-FREE ADVANTAGE (NEA) ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE -------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For net assets over $2 billion .3750 ================================================================================ 74 The annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund assets managed as stated in the table below. As of October 31, 2005, the complex-level fee rate was .1905%. COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE -------------------------------------------------------------------------------- For the first $55 billion .2000% For the next $1 billion .1800 For the next $1 billion .1600 For the next $3 billion .1425 For the next $3 billion .1325 For the next $3 billion .1250 For the next $5 billion .1200 For the next $5 billion .1175 For the next $15 billion .1150 For Managed Assets over $91 billion(2) .1400 ================================================================================ (1) The complex-level fee component of the management fee for the funds is calculated based upon the aggregate Managed Assets ("Managed Assets" means the average daily net assets of each fund including assets attributable to all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds in the U.S. (2) With respect to the complex-wide Managed Assets over $91 billion, the fee rate or rates that will apply to such assets will be determined at a later date. In the unlikely event that complex-wide Managed Assets reach $91 billion prior to a determination of the complex-level fee rate or rates to be applied to Managed Assets in excess of $91 billion, the complex-level fee rate for such complex-wide Managed Assets shall be .1400% until such time as a different rate or rates is determined. The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to their Directors/Trustees who are affiliated with the Adviser or to their Officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Directors/Trustees has adopted a deferred compensation plan for independent Directors/Trustees that enables Directors/Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised funds. For the first ten years of Insured Dividend Advantage's (NVG) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING MARCH 31, MARCH 31, -------------------------------------------------------------------------------- 2002* .30% 2008 .25% 2003 .30 2009 .20 2004 .30 2010 .15 2005 .30 2011 .10 2006 .30 2012 .05 2007 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Insured Dividend Advantage (NVG) for any portion of its fees and expenses beyond March 31, 2012. For the first eight years of Insured Tax-Free Advantage's (NEA) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING NOVEMBER 30, NOVEMBER 30, -------------------------------------------------------------------------------- 2002* .32% 2007 .32% 2003 .32 2008 .24 2004 .32 2009 .16 2005 .32 2010 .08 2006 .32 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Insured Tax-Free Advantage (NEA) for any portion of its fees and expenses beyond November 30, 2010. 75 Notes to FINANCIAL STATEMENTS (continued) 6. ANNOUNCEMENT REGARDING PARENT COMPANY OF ADVISER In early April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul Travelers"), which owned 79% of Nuveen, (A) completed a public offering of a substantial portion of its equity stake in Nuveen, (B) sold Nuveen $200 million of its Nuveen shares, (C) entered into an agreement with Nuveen to sell an additional $400 million of its Nuveen shares on a "forward" basis with payment for and settlement of these shares delayed for several months, and (D) entered into agreements with two unaffiliated investment banking firms to sell an amount equal to most or all of its remaining Nuveen shares for current payment but for future settlement. Transactions (C) and (D) above were settled in late July, which effectively reduced St. Paul Travelers' controlling stake in Nuveen and was deemed an "assignment" (as defined in the 1940 Act) of the investment management agreements between the Funds and the Adviser, which resulted in the automatic termination of each agreement under the 1940 Act. In anticipation of such deemed assignment, the Board of Directors/Trustees had approved new ongoing investment management agreements for each Fund and the submission of those agreements for approval by each respective Fund's shareholders, which shareholder approval was received prior to the settlement of transactions (C) and (D). The new ongoing management agreements took effect upon such settlement. 7. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on December 1, 2005, to shareholders of record on November 15, 2005, as follows: PREMIER INSURED INSURED INSURED INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE (NQI) (NIO) (NIF) (NPX) (NVG) (NEA) --------------------------------------------------------------------------------------------------------- Dividend per share $.0740 $.0710 $.0710 $.0635 $.0705 $.0620 =========================================================================================================
76 Financial HIGHLIGHTS 77 Financial HIGHLIGHTS Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions --------------------------------------------------------------- ---------------------------------- Distributions Distributions from Net from Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== INSURED QUALITY (NQI) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2005 $15.85 $1.03 $ (.39) $(.16) $ -- $ .48 $ (.97) $(.05) $(1.02) 2004 15.72 1.08 .20 (.08) -- 1.20 (1.02) (.05) (1.07) 2003 15.87 1.10 (.05) (.07) (.01) .97 (1.00) (.12) (1.12) 2002 15.78 1.12 .03 (.11) (.01) 1.03 (.92) (.02) (.94) 2001 14.51 1.18 1.20 (.26) -- 2.12 (.85) -- (.85) INSURED OPPORTUNITY (NIO) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2005 16.06 1.01 (.50) (.16) -- .35 (.92) (.03) (.95) 2004 15.89 1.05 .20 (.08) -- 1.17 (.97) (.03) (1.00) 2003 15.83 1.06 .17 (.07) (.01) 1.15 (.97) (.12) (1.09) 2002 15.72 1.15 .03 (.11) (.01) 1.06 (.93) (.02) (.95) 2001 14.64 1.17 1.04 (.26) -- 1.95 (.87) -- (.87) PREMIER INSURED INCOME (NIF) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2005 16.00 1.01 (.49) (.16) (.01) .35 (.93) (.09) (1.02) 2004 15.69 1.03 .36 (.08) -- 1.31 (.98) (.02) (1.00) 2003 15.59 1.05 .13 (.07) -- 1.11 (.98) (.03) (1.01) 2002 15.55 1.14 (.05) (.11) -- .98 (.94) -- (.94) 2001 14.66 1.18 .85 (.26) -- 1.77 (.88) -- (.88) ==================================================================================================================================== Total Returns --------------------- Offering Based Costs and Ending on Preferred Common Based Common Share Share Ending on Share Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** ========================================================================================================= INSURED QUALITY (NQI) --------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2005 $ -- $15.31 $15.31 2.11% 3.09% 2004 -- 15.85 16.00 4.37 7.90 2003 -- 15.72 16.39 12.92 6.27 2002 -- 15.87 15.55 10.82 6.83 2001 -- 15.78 14.92 15.53 14.94 INSURED OPPORTUNITY (NIO) --------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2005 -- 15.46 14.52 (3.72) 2.21 2004 -- 16.06 16.05 9.47 7.64 2003 -- 15.89 15.64 10.22 7.51 2002 -- 15.83 15.21 9.80 7.01 2001 -- 15.72 14.74 19.84 13.61 PREMIER INSURED INCOME (NIF) --------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2005 -- 15.33 14.40 (1.66) 2.16 2004 -- 16.00 15.64 7.55 8.62 2003 -- 15.69 15.51 7.84 7.28 2002 -- 15.59 15.33 6.84 6.57 2001 -- 15.55 15.25 19.97 12.40 ========================================================================================================= Ratios/Supplemental Data ------------------------------------------------------------------------------------------------- Before Credit/Reimbursement After Credit/Reimbursement*** ---------------------------- ------------------------------- Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Applicable Applicable Applicable Applicable Applicable Portfolio to Common to Common to Common to Common to Common Turnover Shares (000) Shares++ Shares++ Shares++ Shares++ Rate ================================================================================================================================= INSURED QUALITY (NQI) --------------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2005 $ 585,777 1.19% 6.58% 1.19% 6.58% 21% 2004 605,028 1.19 6.88 1.19 6.88 8 2003 598,102 1.20 6.93 1.20 6.94 14 2002 601,495 1.23 7.22 1.21 7.24 44 2001 596,999 1.24 7.72 1.23 7.74 34 INSURED OPPORTUNITY (NIO) --------------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2005 1,254,638 1.16 6.35 1.16 6.35 25 2004 1,302,985 1.16 6.59 1.16 6.59 8 2003 1,288,087 1.17 6.67 1.16 6.68 21 2002 1,283,353 1.20 7.42 1.19 7.42 37 2001 1,274,659 1.21 7.69 1.20 7.70 39 PREMIER INSURED INCOME (NIF) --------------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2005 297,624 1.20 6.39 1.20 6.40 20 2004 310,666 1.21 6.53 1.20 6.53 13 2003 303,912 1.22 6.66 1.21 6.68 25 2002 301,121 1.25 7.40 1.23 7.42 43 2001 299,654 1.26 7.79 1.24 7.81 34 ================================================================================================================================= Preferred Shares at End of Period ---------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ============================================================================== INSURED QUALITY (NQI) ----------------------------------------------------------------------------- Year Ended 10/31: 2005 $318,000 $25,000 $71,052 2004 318,000 25,000 72,565 2003 318,000 25,000 72,021 2002 318,000 25,000 72,287 2001 318,000 25,000 71,934 INSURED OPPORTUNITY (NIO) ----------------------------------------------------------------------------- Year Ended 10/31: 2005 680,000 25,000 71,126 2004 680,000 25,000 72,904 2003 680,000 25,000 72,356 2002 680,000 25,000 72,182 2001 680,000 25,000 71,862 PREMIER INSURED INCOME (NIF) ----------------------------------------------------------------------------- Year Ended 10/31: 2005 161,000 25,000 71,215 2004 161,000 25,000 73,240 2003 161,000 25,000 72,191 2002 161,000 25,000 71,758 2001 161,000 25,000 71,530 ==============================================================================
* Annualized. ** Total Investment Return on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. Total Return on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. See accompanying notes to financial statements. 78-79 SPREAD Financial HIGHLIGHTS (continued) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions --------------------------------------------------------------- ---------------------------------- Distributions Distributions from Net from Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== INSURED PREMIUM INCOME 2 (NPX) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2005 $14.45 $ .89 $ (.44) $(.14) $ -- $ .31 $ (.83) $ -- $ (.83) 2004 14.24 .93 .23 (.07) -- 1.09 (.88) -- (.88) 2003 14.17 .96 .03 (.06) -- .93 (.86) -- (.86) 2002 13.94 .99 .16 (.10) -- 1.05 (.82) -- (.82) 2001 13.05 1.01 .86 (.23) -- 1.64 (.75) -- (.75) INSURED DIVIDEND ADVANTAGE (NVG) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2005 15.78 1.00 (.38) (.15) (.01) .46 (.89) (.12) (1.01) 2004 15.41 1.02 .42 (.07) -- 1.37 (.93) (.07) (1.00) 2003 15.35 1.03 .15 (.07) (.01) 1.10 (.93) (.11) (1.04) 2002(a) 14.33 .55 1.10 (.05) -- 1.60 (.47) -- (.47) INSURED TAX-FREE ADVANTAGE (NEA) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2005 14.75 .97 (.19) (.15) -- .63 (.81) (.01) (.82) 2004 14.54 .99 .21 (.07) -- 1.13 (.92) (.01) (.93) 2003(b) 14.33 .82 .42 (.05) -- 1.19 (.78) -- (.78) ==================================================================================================================================== Total Returns --------------------- Offering Based Costs and Ending on Preferred Common Based Common Share Share Ending on Share Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** ================================================================================================= INSURED PREMIUM INCOME 2 (NPX) ------------------------------------------------------------------------------------------------- Year Ended 10/31: 2005 $ -- $13.93 $12.83 (3.32)% 2.14% 2004 -- 14.45 14.11 6.42 7.89 2003 -- 14.24 14.12 8.84 6.70 2002 -- 14.17 13.77 6.32 7.83 2001 -- 13.94 13.75 29.46 12.85 INSURED DIVIDEND ADVANTAGE (NVG) ------------------------------------------------------------------------------------------------- Year Ended 10/31: 2005 -- 15.23 14.17 2.00 2.93 2004 -- 15.78 14.89 7.61 9.19 2003 -- 15.41 14.81 6.10 7.37 2002(a) (.11) 15.35 14.96 2.84 10.44 INSURED TAX-FREE ADVANTAGE (NEA) ------------------------------------------------------------------------------------------------- Year Ended 10/31: 2005 -- 14.56 13.41 (4.68) 4.33 2004 .01 14.75 14.91 7.41 8.07 2003(b) (.20) 14.54 14.79 3.87 6.98 ================================================================================================= Ratios/Supplemental Data ------------------------------------------------------------------------------------------------- Before Credit/Reimbursement After Credit/Reimbursement*** ---------------------------- ------------------------------- Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Applicable Applicable Applicable Applicable Applicable Portfolio to Common to Common to Common to Common to Common Turnover Shares (000) Shares++ Shares++ Shares++ Shares++ Rate ============================================================================================================================== INSURED PREMIUM INCOME 2 (NPX) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2005 $520,508 1.16% 6.20% 1.16% 6.20% 23% 2004 539,697 1.16 6.52 1.16 6.53 14 2003 530,975 1.17 6.68 1.16 6.69 31 2002 527,800 1.20 7.13 1.19 7.14 26 2001 519,296 1.22 7.39 1.20 7.41 27 INSURED DIVIDEND ADVANTAGE (NVG) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2005 454,018 1.15 5.96 .70 6.42 2 2004 470,389 1.15 6.09 .70 6.54 11 2003 459,368 1.17 6.22 .72 6.67 25 2002(a) 457,432 1.10* 5.71* .61* 6.20* 22 INSURED TAX-FREE ADVANTAGE (NEA) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2005 269,614 1.19 6.06 .70 6.55 1 2004 273,112 1.20 6.24 .71 6.73 13 2003(b) 269,112 1.12* 5.52* .65* 6.00* 72 ============================================================================================================================== Preferred Shares at End of Period ----------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ========================================================================== INSURED PREMIUM INCOME 2 (NPX) -------------------------------------------------------------------------- Year Ended 10/31: 2005 $268,900 $25,000 $73,392 2004 268,900 25,000 75,176 2003 268,900 25,000 74,365 2002 268,900 25,000 74,070 2001 268,900 25,000 73,280 INSURED DIVIDEND ADVANTAGE (NVG) -------------------------------------------------------------------------- Year Ended 10/31: 2005 233,000 25,000 73,714 2004 233,000 25,000 75,471 2003 233,000 25,000 74,288 2002(a) 233,000 25,000 74,081 INSURED TAX-FREE ADVANTAGE (NEA) -------------------------------------------------------------------------- Year Ended 10/31: 2005 144,000 25,000 71,808 2004 144,000 25,000 72,415 2003(b) 144,000 25,000 71,721 ==========================================================================
* Annualized. ** Total Investment Return on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. Total Return on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. (a) For the period March 25, 2002 (commencement of operations) through October 31, 2002. (b) For the period November 21, 2002 (commencement of operations) through October 31, 2003. See accompanying notes to financial statements. 80-81 SPREAD Board Members AND OFFICERS The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board Members of the Funds. The number of board members of the Fund is currently set at nine. None of the board members who are not "interested" persons of the Funds has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the board members and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER ------------------------------------------------------------------------------------------------------------------------------------ BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS: ------------------------------------------------------------------------------------------------------------------------------------ Timothy R. Schwertfeger(1) Chairman of 1994 Chairman (since 1996) and Director of Nuveen Investments, 156 3/28/49 the Board Inc., Nuveen Investments, LLC, Nuveen Advisory Corp. and 333 W. Wacker Drive and Trustee Nuveen Institutional Advisory Corp.(3); Director (since 1996) Chicago, IL 60606 of Institutional Capital Corporation; Chairman and Director (since 1997) of Nuveen Asset Management; Chairman and Director of Rittenhouse Asset Management, Inc. (since 1999); Chairman of Nuveen Investments Advisers Inc. (since 2002). BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS: ------------------------------------------------------------------------------------------------------------------------------------ Robert P. Bremner Board member 1997 Private Investor and Management Consultant. 156 8/22/40 333 W. Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Lawrence H. Brown Board member 1993 Retired (since 1989) as Senior Vice President of The 156 7/29/34 Northern Trust Company; Director (since 2002) Community 333 W. Wacker Drive Advisory Board for Highland Park and Highwood, United Chicago, IL 60606 Way of the North Shore. ------------------------------------------------------------------------------------------------------------------------------------ Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private philanthropic 156 10/22/48 corporation (since 1996); Director and Vice Chairman, United 333 W. Wacker Drive Fire Group, a publicly held company; Adjunct Faculty Member, Chicago, IL 60606 University of Iowa; Director, Gazette Companies; Life Trustee of Coe College; Director, Iowa College Foundation; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. ------------------------------------------------------------------------------------------------------------------------------------ William C. Hunter Board member 2004 Dean and Distinguished Professor of Finance, School of 156 3/6/48 Business at the University of Connecticut (since 2002); 333 W. Wacker Drive previously, Senior Vice President and Director of Research Chicago, IL 60606 at the Federal Reserve Bank of Chicago (1995-2003); Director (since 1997), Credit Research Center at Georgetown University; Director (since 2004) of Xerox Corporation. ------------------------------------------------------------------------------------------------------------------------------------ David J. Kundert Board member 2005 Retired (since 2004) as Chairman, JPMorgan Fleming Asset 154 10/28/42 Management, President and CEO, Banc One Investment 333 W. Wacker Drive Advisors Corporation, and President, One Group Mutual Chicago, IL 60606 Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Board of Regents, Luther College; currently a member of the American and Wisconsin Bar Associations. 82 NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER ------------------------------------------------------------------------------------------------------------------------------------ BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED): ------------------------------------------------------------------------------------------------------------------------------------ William J. Schneider Board member 1997 Chairman of Miller-Valentine Partners Ltd., a real estate 156 9/24/44 investment company; formerly, Senior Partner and Chief 333 W. Wacker Drive Operating Officer (retired, December 2004), of Miller-Valentine Chicago, IL 60606 Group; formerly, Vice President, Miller-Valentine Realty, a construction company; Board Member, Chair of the Finance Committee and member of the Audit Committee of Premier Health Partners, the not-for-profit company of Miami Valley Hospital; Vice President, Dayton Philharmonic Orchestra Association; Board Member, Regional Leaders Forum, which promotes cooperation on economic development issues; Director, Dayton Development Coalition; formerly, Member, Community Advisory Board, National City Bank, Dayton, Ohio and Business Advisory Council, Cleveland Federal Reserve Bank. ------------------------------------------------------------------------------------------------------------------------------------ Judith M. Stockdale Board member 1997 Executive Director, Gaylord and Dorothy Donnelley 156 12/29/47 Foundation (since 1994); prior thereto, Executive Director, 333 W. Wacker Drive Great Lakes Protection Fund (from 1990 to 1994). Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Eugene S. Sunshine Board member 2005 Senior Vice President for Business and Finance, 156 1/22/50 Northwestern University (since 1997); Director (since 2003), 333 W. Wacker Drive Chicago Board Options Exchange; Director (since 2003), Chicago, IL 60606 National Mentor Holdings, a privately-held, national provider of home and community-based services; Chairman (since 1997), Board of Directors, Rubicon, a pure captive insurance company owned by Northwestern University; Director (since 1997), Evanston Chamber of Commerce and Evanston Inventure, a business development organization. NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUND: ------------------------------------------------------------------------------------------------------------------------------------ Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 156 9/9/56 Administrative Associate General Counsel, formerly, Vice President and 333 W. Wacker Drive Officer Assistant General Counsel, of Nuveen Investments, LLC; Chicago, IL 60606 Managing Director (2002-2004), General Counsel (1998-2004) and Assistant Secretary, formerly, Vice President of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3); Managing Director (since 2002) and Assistant Secretary and Associate General Counsel, formerly, Vice President (since 1997), of Nuveen Asset Management; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Assistant Secretary of NWQ Investment Management Company, LLC. (since 2002); Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); Managing Director, Associate General Counsel and Assistant Secretary of Rittenhouse Asset Management, Inc. (since 2003); Chartered Financial Analyst. 83 Board Members AND OFFICERS (CONTINUED) NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS (CONTINUED): ------------------------------------------------------------------------------------------------------------------------------------ Julia L. Antonatos Vice President 2004 Managing Director (since 2005), formerly Vice President 156 9/22/63 (since 2002); formerly, Assistant Vice President (since 2000) 333 W. Wacker Drive of Nuveen Investments, LLC; Chartered Financial Analyst. Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant Vice 156 2/3/66 and Assistant President (since 2000) of Nuveen Investments, LLC. 333 W. Wacker Drive Secretary Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999); Vice 156 11/28/67 and Treasurer President and Treasurer (since 1999) of Nuveen Investments, 333 W. Wacker Drive Inc.; Vice President and Treasurer (1999-2004) of Nuveen Chicago, IL 60606 Advisory Corp. and Nuveen Institutional Advisory Corp.(3); Vice President and Treasurer of Nuveen Asset Management (since 2002) and of Nuveen Investments Advisers Inc. (since 2002); Assistant Treasurer of NWQ Investment Management Company, LLC. (since 2002); Vice President and Treasurer of Nuveen Rittenhouse Asset Management, Inc. (since 2003); Chartered Financial Analyst. ------------------------------------------------------------------------------------------------------------------------------------ John N. Desmond Vice President 2005 Vice President, Director of Investment Operations, Nuveen 156 8/24/61 Investments, LLC (since January 2005); formerly, Director, 333 W. Wacker Drive Business Manager, Deutsche Asset Management (2003-2004), Chicago, IL 60606 Director, Business Development and Transformation, Deutsche Trust Bank Japan (2002-2003); previously, Senior Vice President, Head of Investment Operations and Systems, Scudder Investments Japan, (2000-2002), Senior Vice President, Head of Plan Administration and Participant Services, Scudder Investments (1995-2002). ------------------------------------------------------------------------------------------------------------------------------------ Jessica R. Droeger Vice President 1998 Vice President (since 2002), Assistant Secretary and 156 9/24/64 and Secretary Assistant General Counsel (since 1998) formerly, Assistant 333 W. Wacker Drive Vice President (since 1998) of Nuveen Investments, LLC; Chicago, IL 60606 Vice President (2002-2004) and Assistant Secretary (1998-2004) formerly, Assistant Vice President of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3); Vice President and Assistant Secretary (since 2005) of Nuveen Asset Management. ------------------------------------------------------------------------------------------------------------------------------------ Lorna C. Ferguson Vice President 1998 Managing Director (since 2004), formerly, Vice President of 156 10/24/45 Nuveen Investments, LLC, Managing Director (2004) formerly, 333 W. Wacker Drive Vice President (1998-2004) of Nuveen Advisory Corp. and Chicago, IL 60606 Nuveen Institutional Advisory Corp.(3); Managing Director (since 2005) of Nuveen Asset Management. ------------------------------------------------------------------------------------------------------------------------------------ William M. Fitzgerald Vice President 1995 Managing Director (since 2002), formerly, Vice President of 156 3/2/64 Nuveen Investments; Managing Director (1997-2004) of 333 W. Wacker Drive Nuveen Advisory Corp. and Nuveen Institutional Advisory Chicago, IL 60606 Corp.(3); Managing Director of Nuveen Asset Management (since 2001); Vice President of Nuveen Investments Advisers Inc. (since 2002); Chartered Financial Analyst. ------------------------------------------------------------------------------------------------------------------------------------ Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 156 5/31/54 and Controller of Nuveen Investments, LLC; formerly, Vice President and 333 W. Wacker Drive Funds Controller (1998-2004) of Nuveen Investments, Inc.; Chicago, IL 60606 Certified Public Accountant. 84 NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS (CONTINUED): ------------------------------------------------------------------------------------------------------------------------------------ James D. Grassi Vice President 2004 Vice President and Deputy Director of Compliance (since 2004) 156 4/13/56 and Chief of Nuveen Investments, LLC, Nuveen Investments Advisers Inc., 333 W. Wacker Drive Compliance Nuveen Asset Management and Rittenhouse Asset Management, Chicago, IL 60606 Officer Inc.; previously, Vice President and Deputy Director of Compliance (2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3); formerly, Senior Attorney (1994-2004), The Northern Trust Company. ------------------------------------------------------------------------------------------------------------------------------------ David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 156 3/22/63 LLC; Certified Public Accountant. 333 W. Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Tina M. Lazar Vice President 2002 Vice President of Nuveen Investments, LLC (since 1999). 156 8/27/61 333 W. Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 156 7/27/51 and Assistant Counsel of Nuveen Investments, LLC; Vice President and 333 W. Wacker Drive Secretary Assistant Secretary of Nuveen Advisory Corp. and Nuveen Chicago, IL 60606 Institutional Advisory Corp.(3); Vice President (since 2005) and Assistant Secretary of Nuveen Investments, Inc.; Vice President (since 2005) and Assistant Secretary (since 1997) of Nuveen Asset Management; Vice President (since 2000), Assistant Secretary and Assistant General Counsel (since 1998) of Rittenhouse Asset Management, Inc.; Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); Assistant Secretary of NWQ Investment Management Company, LLC (since 2002).
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the Investment Company Act of 1940, because he is an officer and board member of the Adviser. (2) Board members serve an indefinite term until his/her successor is elected. The year first elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex. (3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were reorganized into Nuveen Asset Management, effective January 1, 2005. (4) Officers serve one year terms through July of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex. 85 ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS At a meeting held on May 10-12, 2005, the Board of Trustees of the Funds, including the independent Trustees, unanimously approved the Investment Management Agreement between each Fund and NAM. THE APPROVAL PROCESS To assist the Board in its evaluation of an advisory contract with NAM, the independent Trustees received a report in adequate time in advance of their meeting which outlined, among other things, the services provided by NAM; the organization of NAM, including the responsibilities of various departments and key personnel; the Fund's past performance as well as the Fund's performance compared to funds of similar investment objectives compiled by an independent third party (a "Peer Group"); the profitability of NAM and certain industry profitability analyses for advisers to unaffiliated investment companies; the expenses of NAM in providing the various services; the management fees of NAM, including comparisons of such fees with the management fees of comparable funds in its Peer Group as well as comparisons of NAM's management fees with the fees NAM assesses to other types of investment products or accounts, if any; the soft dollar practices of NAM; and the expenses of each Fund, including comparisons of the Fund's expense ratios (after any fee waivers) with the expense ratios of its Peer Group. This information supplements that received by the Board throughout the year regarding Fund performance, expense ratios, portfolio composition, trade execution and sales activity. In addition to the foregoing materials, independent legal counsel to the independent Trustees provided, in advance of the meeting, a legal memorandum outlining, among other things, the duties of the Trustees under the 1940 Act as well as the general principles of relevant state law in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; an adviser's fiduciary duty with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards of directors have fulfilled their duties and factors to be considered by the board in voting on advisory agreements. At the Board meeting, NAM made a presentation to and responded to questions from the Board. After the presentations and after reviewing the written materials, the independent Trustees met privately with their legal counsel to review the Board's duties in reviewing advisory contracts and consider the renewal of the advisory contracts. It is with this background that the Trustees considered each Investment Management Agreement with NAM. The independent Trustees, in consultation with independent counsel, reviewed the factors set out in judicial decisions and SEC directives relating to the renewal of advisory contracts. As outlined in more detail below, the Trustees considered all factors they believed relevant with respect to each Fund, including the following: (a) the nature, extent and quality of the services to be provided by NAM; (b) the investment performance of the Fund and NAM; (c) the costs of the services to be provided and profits to be realized by NAM and its affiliates from the relationship with the Fund; (d) the extent to which economies of scale would be realized as the Fund grows; and (e) whether fee levels reflect these economies of scale for the benefit of Fund investors. A. NATURE, EXTENT AND QUALITY OF SERVICES In evaluating the nature, extent and quality of NAM's services, the Trustees reviewed information concerning the types of services that NAM or its affiliates provide and are expected to provide to the Nuveen Funds; narrative and statistical information concerning the Fund's performance record and how such performance compares to the Fund's Peer Group; information describing NAM's organization and its various departments, the experience and responsibilities of key personnel, and available resources. In the discussion of key personnel, the Trustees received materials regarding the changes or additions in personnel of NAM. The Trustees further noted the willingness of the personnel of NAM to engage in open, candid discussions with the Board. The Trustees further considered the quality of NAM's investment process in making portfolio management decisions, including any refinements or improvements to the portfolio management processes, enhancements to technology and systems that are available to portfolio managers, and any additions of new personnel which may strengthen or expand the research and investment capabilities of NAM. In their review of the advisory contracts for the fixed income funds, such as the Funds, the Trustees also noted that Nuveen won the Lipper Award for Best Fund Family: Fixed Income-Large Asset Class, for 2004. Given the Trustees' experience with the Funds, other Nuveen funds and NAM, the Trustees noted that they were familiar with and continue to have a good understanding of the organization, operations and personnel of NAM. In addition to advisory services, the independent Trustees considered the quality of the administrative or non-advisory services provided. In this regard, NAM provides the Funds with such administrative and other services (exclusive of, and in addition to, any such services provided by others for the Funds) and officers and other personnel as are necessary for the operations of the respective Fund. In addition to investment management services, NAM and its affiliates provide each Fund with a wide range of services, including: preparing shareholder reports; providing daily accounting; providing quarterly financial statements; overseeing and coordinating the activities of other service providers; administering and organizing Board meetings and preparing the Board materials for such meet- 86 ings; providing legal support (such as helping to prepare registration statements, amendments thereto and proxy statements and responding to regulatory inquiries); and performing other Fund administrative tasks necessary for the operation of the respective Fund (such as tax reporting and fulfilling regulatory filing requirements). In addition, in evaluating the administrative services, the Trustees considered, in particular, NAM's policies and procedures for assuring compliance with applicable laws and regulations in light of the new SEC regulations governing compliance. The Trustees noted NAM's focus on compliance and its compliance systems. In their review, the Trustees considered, among other things, the additions of experienced personnel to NAM's compliance group and modifications and other enhancements to NAM's computer systems. In addition to the foregoing, the Trustees also noted that NAM outsources certain services that cannot be replicated without significant costs or at the same level of expertise. Such outsourcing has been a beneficial and efficient use of resources by keeping expenses low while obtaining quality services. In addition to the above, in reviewing the variety of additional services that NAM or its affiliates must provide to closed-end funds, such as the Funds, the independent Trustees determined that Nuveen's commitment to supporting the secondary market for the common shares of its closed-end funds is particularly noteworthy. In this regard, the Trustees noted Nuveen's efforts to sponsor numerous forums for analysts and specialists regarding the various Nuveen closed-end funds, its creation of a new senior position dedicated to providing secondary market support services and enhancing communications with investors and analysts, and its advertising and media relations efforts designed to raise investor and analyst awareness of the closed-end funds. With respect to services provided to municipal funds, including the Funds, the Trustees also noted, among other things, the enhancements NAM implemented to its municipal portfolio management processes (e.g., the increased use of benchmarks to guide and assess the performance of its portfolio managers); the implementation of a risk management program; and the various initiatives being undertaken to enhance or modify NAM's computer systems as necessary to support the innovations of the municipal investment team (such as, the ability to assess certain historical data in order to create customized benchmarks, perform attribution analysis and facilitate the use of derivatives as hedging instruments). With respect to certain of the Nuveen funds with a less seasoned portfolio, the Trustees also noted the hedging program implemented for such funds and the team responsible for developing, implementing and monitoring the hedging procedures. The hedging program was designed to help maintain the applicable fund's duration with certain benchmarks. Based on their review, the Trustees concluded that, overall, they were satisfied with the nature, extent and quality of services provided (and expected to be provided) to the Funds under the Investment Management Agreements. B. THE INVESTMENT PERFORMANCE OF THE FUND AND ADVISER As previously noted, the Board received a myriad of performance information regarding each Fund and its Peer Group. Among other things, the Board received materials reflecting a Fund's historic performance and the Fund's performance compared to its Peer Group. In evaluating the performance information, in certain limited instances, the Trustees noted that the closest Peer Group for a Fund still would not adequately reflect such Fund's investment objectives and strategies, thereby limiting the usefulness of the comparisons of such Fund's performance with that of the Peer Group. As noted above, the performance data included, among other things, the respective Fund's performance relative to its peers. More specifically, a Fund's one-, three- and five-year total returns (as applicable) for the periods ending December 31, 2004 were evaluated relative to the unaffiliated funds in its respective Peer Group (including the returns of individual peers as well as the Peer Group average) as well as additional performance information with respect to all funds in the Peer Group. Based on their review, the Trustees determined that the respective Fund's absolute and relative investment performance over time had been satisfactory. C. FEES, EXPENSES AND PROFITABILITY 1. FEES AND EXPENSES In evaluating the management fees and expenses that a Fund is expected to bear, the Trustees considered the respective Fund's current management fee structure and the Fund's expected expense ratios in absolute terms as well as compared with the fees and expense ratios of the unaffiliated funds in its Peer Group. The Trustees reviewed the financial information of NAM, including its respective revenues, expenses and profitability. In reviewing fees, the Trustees, among other things, reviewed comparisons of the Fund's gross management fees (fees after fund-level and complex-wide level breakpoints but before reimbursement and fee waivers), net management fees (after breakpoints and reimbursements and fee waivers) and total expense ratios (before and after waivers) with those of the unaffiliated funds in the Peer Group and peer averages. In this regard, the Trustees noted that the relative ranking of the Nuveen funds on fees and expenses was aided by the significant level of fee reductions provided by the fund-level and complex-wide breakpoint schedules, and the fee waivers and reimbursements provided by Nuveen for certain funds launched since 1999. The complex-wide breakpoint schedule was instituted in 2004 and is described in further detail below in Section D entitled "Economies of Scale and Whether Fee Levels Reflect these Economies of Scale." In their review of the fee and expense information provided, including, in particular, the expense ratios of the unaffiliated funds in the respective Peer Group, the Trustees determined that each Fund's net total expense ratio was within an acceptable range compared to such peers. 2. COMPARISONS WITH THE FEES OF OTHER CLIENTS The Trustees further compared the fees of NAM to the fees NAM assessed for other types of clients investing in municipal funds (such as municipal managed accounts). With respect to such separately managed accounts, the advisory fees for such accounts are generally lower than those charged to the comparable Funds. The Trustees noted, however, the additional services that are provided and the costs incurred by Nuveen in managing and operating registered investment companies, such as the Funds, compared to individually managed separate accounts. For instance, as described above, NAM and its affiliates provide numerous services to the Funds including, but not limited to, preparing shareholder reports; providing daily accounting; preparing quarterly 87 ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS (continued) financial statements; overseeing and coordinating the activities of other service providers; administering and organizing Board meetings and preparing the Board materials for such meetings; providing legal support; and administering all other aspects of the Fund's operations. Further, the Trustees noted the increased compliance requirements for funds in light of new SEC regulations and other legislation. These services are generally not required to the same extent, if at all, for separate accounts. In addition to the differences in services, the Trustees also considered, among other things, the differences in product distribution, investment policies, investor profiles and account sizes. Accordingly, the Trustees believe that the nature and number of services provided to operate a Fund merit the higher fees than those to separate managed accounts. 3. PROFITABILITY OF NAM In conjunction with its review of fees, the Trustees also considered NAM's profitability. The Trustees reviewed NAM's revenues, expenses and profitability margins (on both a pre-tax and after-tax basis). In reviewing profitability, the Trustees recognized that one of the most difficult issues in determining profitability is establishing a method of allocating expenses. Accordingly, the Trustees reviewed NAM's assumptions and methodology of allocating expenses. In this regard, the methods of allocation used appeared reasonable but the Board noted the inherent limitations in allocating costs among various advisory products. The Trustees also recognized that individual fund or product line profitability of other advisers is generally not publicly available. Further, profitability may be affected by numerous factors including the types of funds managed, expense allocations, business mix, etc. and therefore comparability of profitability is somewhat limited. Nevertheless, to the extent available, the Trustees considered NAM's profit margin compared to the profitability of various publicly-traded investment management companies and/or investment management companies that publicly disclose some or all of their financial results compiled by three independent third-party service providers. The Trustees also reviewed the revenues, expenses and profit margins of various unaffiliated advisory firms with similar amounts of assets under management for the last year prepared by NAM. Based on their review, the Trustees were satisfied that NAM's level of profitability from its relationship with each Fund was reasonable in light of the services provided. In evaluating the reasonableness of the compensation, the Trustees also considered any other revenues paid to NAM as well as any indirect benefits (such as soft dollar arrangements, if any) NAM and its affiliates are expected to receive that are directly attributable to their management of the Funds, if any. See Section E below for additional information. Based on their review of the overall fee arrangements of the applicable Fund, the Trustees determined that the advisory fees and expenses of the respective Fund were reasonable. D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE In reviewing the compensation, the Trustees have long understood the benefits of economies of scale as the assets of a fund grow and have sought to ensure that shareholders share in these benefits. One method for shareholders to share in economies of scale is to include breakpoints in the advisory fee schedules that reduce fees as fund assets grow. Accordingly, the Trustees received and reviewed the schedules of advisory fees for each Fund, including fund-level breakpoints thereto. In addition, after lengthy negotiations with management, the Board in May, 2004 approved a complex-wide fee arrangement pursuant to which fees of the funds in the Nuveen complex, including the Funds, are reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement was introduced on August 1, 2004 and the Trustees reviewed data regarding the reductions of fees for the Nuveen funds for the period of August 1, 2004 to December 31, 2004. In evaluating the complex-wide fee arrangement, the Trustees considered, among other things, the historic and expected fee savings to shareholders as assets grow, the amount of fee reductions at various asset levels, and that the arrangement would extend to all funds in the Nuveen complex. The Trustees also considered the impact, if any, the complex-wide fee arrangement may have on the level of services provided. Based on their review, the Trustees concluded that the breakpoint schedule and complex-wide fee arrangement currently were acceptable and desirable in providing benefits from economies of scale to shareholders. E. INDIRECT BENEFITS In evaluating fees, the Trustees also considered any indirect benefits or profits NAM or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Trustees considered any benefits from soft dollar arrangements. The Trustees noted that although NAM manages a large amount of assets, it has very little, if any, brokerage to allocate. This is due to the fact that NAM typically manages the portfolios of the municipal funds in the Nuveen complex and municipal bonds generally trade on a principal basis. Accordingly, NAM does not currently have any soft dollar arrangements and does not pay excess brokerage commissions (or spreads on principal transactions) in order to receive research services. In addition to soft dollar arrangements, the Trustees also con- 88 sidered any other revenues, if any, received by NAM or its affiliates. In this regard, the Trustees considered revenues received by Nuveen for serving as agent for broker-dealers at its preferred trading desk and for acting as co-manager in the initial public offering of new closed-end exchange-traded funds. F. OTHER CONSIDERATIONS Nuveen, until recently, was a majority-owned subsidiary of St. Paul Travelers Companies, Inc. ("St. Paul"). As noted, St. Paul earlier this year announced its intention to divest its equity stake in Nuveen. Nuveen is the parent of NAM. Pursuant to a series of transactions, St. Paul had begun to reduce its interest in Nuveen which will ultimately result in a change of control of Nuveen and therefore NAM. As mandated by the 1940 Act, such a change in control would result in an assignment of the Investment Management Agreements with NAM and the automatic termination of such agreements. Accordingly, the Board also considered the approval of a New Investment Management Agreement with each Fund in light of, and which would take effect upon, the anticipated change of control. More specifically, the Board considered for each Fund a New Investment Management Agreement on substantially identical terms to the existing Investment Management Agreement, to take effect after the change of control has occurred and the contract has been approved by Fund shareholders. In its review, the Board considered whether the various transactions necessary to divest St. Paul's interest will have an impact on the various factors they considered in approving NAM, such as the scope and quality of services to be provided following the change of control. In reviewing the St. Paul transactions, the Board considered, among other things, the impact, if any, on the operations and organizational structure of NAM; the possible benefits and costs of the transactions to the respective Fund; the potential implications of any arrangements used by Nuveen to finance certain of the transactions; the ability of NAM to perform its duties after the transactions; whether a fee structure or expense ratio would change; any changes to the current practices of the respective Fund; any changes to the terms of the advisory agreement; and any anticipated changes to the respective operations of NAM. Based on its review, the Board determined that St. Paul's divestiture would not affect the nature and quality of services provided by NAM, the terms of the respective Investment Management Agreement, including the fees thereunder, and would not materially affect the organization or operations of NAM. Accordingly, the Board determined that their analysis of the various factors regarding their approval of NAM would continue to apply after the change of control. G. APPROVAL The Trustees did not identify any single factor discussed previously as all-important or controlling. The Trustees, including a majority of independent Trustees, concluded that the terms of the Investment Management Agreements were fair and reasonable, that NAM's fees are reasonable in light of the services provided to each Fund, that the renewal of the NAM Investment Management Agreements should be approved and that the new, post-change of control NAM Investment Managements Agreement be approved and recommended to shareholders. 89 Reinvest Automatically EASILY AND CONVENIENTLY Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN EXCHANGE-TRADED CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Exchange-Traded Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. FLEXIBLE You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee. You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time. CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787. 90 Other Useful INFORMATION In April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul Travelers") sold the majority of its controlling equity interest in Nuveen Investments, Inc. ("Nuveen") to the general public. Nuveen is the parent of Nuveen Asset Management ("NAM"), which is each Fund's investment manager. This sale was deemed to be an "assignment" of the investment management agreement between each Fund and NAM and, if applicable, of the sub-advisory agreement between NAM and the Fund's sub-adviser. As required by law, the shareholders of each Fund were asked to approve a new investment management agreement and, if applicable, a new subadvisory agreement that reflected this change in ownership. The shareholders of each Fund voted this approval at a Shareholders' Meeting on July 26, 2005. There were no changes to the investment objectives or management of any Fund as a result of these actions. QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION Each Fund's (i) quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the 12-month period ended June 30, 2005, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities are available without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at www.nuveen.com. You may also obtain this and other Fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public References Section at 450 Fifth Street NW, Washington, D.C. 20549. CEO CERTIFICATION DISCLOSURE Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the Securities and Exchange Commission the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act. GLOSSARY OF TERMS USED IN THIS REPORT AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment's actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered. AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a Fund's portfolio, computed by weighting each maturity date (the date the security comes due) by the market value of the security. This figure does not account for the likelihood of prepayments or the exercise of call provisions. LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over which a bond's principal and interest will be paid, and consequently is a measure of the sensitivity of a bond's or bond Fund's value to changes when market interest rates change. Generally, the longer a bond's or Fund's duration, the more the price of the bond or Fund will change as interest rates change. Leverage-adjusted duration takes into account the leveraging process for a Fund and therefore is longer than the duration of the Fund's portfolio of bonds. MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's current annualized dividend divided by its current market price. NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by subtracting the liabilities of the Fund (including any MuniPreferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. BOARD OF DIRECTORS/TRUSTEES Robert P. Bremner Lawrence H. Brown Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Eugene S. Sunshine FUND MANAGER Nuveen Asset Management 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN State Street Bank & Trust Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 LEGAL COUNSEL Chapman and Cutler LLP Chicago, IL INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP Chicago, IL Each Fund intends to repurchase shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the period covered by this report. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 91 Nuveen Investments: SERVING Investors For GENERATIONS Photo of: 2 women looking at a photo album. Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles. WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS. Managing more than $131 billion in assets, Nuveen Investments offers access to a number of different asset classes and investing solutions through a variety of products. Nuveen Investments markets its capabilities under four distinct brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in growth-style equities; and Symphony, a leading institutional manager of market-neutral alternative investment portfolios. FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS. To learn more about the products and services Nuveen Investments offers, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Be sure to obtain a prospectus, where applicable. Investors should consider the investment objective and policies, risk considerations, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information relevant to an investment in the Fund. For a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money. o Share prices o Fund details Learn more o Daily financial news about Nuveen Funds at o Investor education WWW.NUVEEN.COM/ETF o Interactive planning tools Logo: NUVEEN Investments EAN-D-1005D ITEM 2. CODE OF ETHICS. As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/etf. (To view the code, click on the Investor Resources drop down menu box, click on Fund Governance and then click on Code of Conduct.) ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's Board of Directors or Trustees determined that the registrant has at least one "audit committee financial expert" (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit committee financial expert is Jack B. Evans, Chairman of the Audit Committee, who is "independent" for purposes of Item 3 of Form N-CSR. Mr. Evans was formerly President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser ("SCI"). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and actively supervised the CFO's preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI's financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Nuveen Insured Tax-Free Advantage Municipal Fund The following tables show the amount of fees that Ernst & Young LLP, the Fund's auditor, billed to the Fund during the Fund's last two full fiscal years. For engagements with Ernst & Young LLP entered into on or after May 6, 2003, the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed. The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee). SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES FISCAL YEAR ENDED TO FUND BILLED TO FUND BILLED TO FUND BILLED TO FUND ------------------------------------------------------------------------------------------------------------------------------------ October 31, 2005 $ 15,435 $ 0 $ 947 $ 2,750 ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception ------------------------------------------------------------------------------------------------------------------------------------ October 31, 2004 $ 14,746 $ 0 $ 2,704 $ 2,550 ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception ------------------------------------------------------------------------------------------------------------------------------------
The above "All Other Fees" are fees paid to audit firms to perform agreed upon procedures required by the rating agencies to rate fund preferred shares. The above "Tax Fees" were billed for professional services for tax advice, tax compliance, and tax planning. SERVICES THAT THE FUND'S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS The following tables show the amount of fees billed by Ernst & Young LLP to Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling, controlled by or under common control with NAM ("Control Affiliate") that provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for engagements directly related to the Fund's operations and financial reporting, during the Fund's last two full fiscal years. The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the Fund's audit is completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS --------------------------------------------------------------------------------------------------------------------- October 31, 2005 $ 0 $ 282,575 $ 0 --------------------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% pursuant to pre-approval exception --------------------------------------------------------------------------------------------------------------------- October 31, 2004 $ 0 $ 0 $ 0 --------------------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% pursuant to pre-approval exception ---------------------------------------------------------------------------------------------------------------------
The above "Tax Fees" are primarily fees billed to the Adviser for Fund tax return preparation. NON-AUDIT SERVICES The following table shows the amount of fees that Ernst & Young LLP billed during the Fund's last two full fiscal years for non-audit services. For engagements entered into on or after May 6, 2003, the Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund's operations and financial reporting (except for those subject to the de minimis exception described above). The Audit Committee requested and received information from Ernst & Young LLP about any non-audit services that Ernst & Young LLP rendered during the Fund's last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Ernst & Young LLP's independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES BILLED TO ADVISER AND AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL ------------------------------------------------------------------------------------------------------------------------------------ October 31, 2005 $ 3,697 $ 282,575 $ 0 $ 286,272 October 31, 2004 $ 5,254 $ 0 $ 0 $ 5,254
The above "Non-Audit Fees billed to Adviser" for 2005 include "Tax-Fees" billed to Adviser in the amount of $282,575 from previous table. Audit Committee Pre-Approval Policies and Procedures. Generally, the audit committee must approve (i) all non-audit services to be performed for the Fund by the Fund's independent accountants and (ii) all audit and non-audit services to be performed by the Fund's independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the audit committee if they are expected to be for amounts greater than $10,000; (ii) reported to the audit committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the audit committee at the next audit committee meeting if they are expected to be for an amount under $5,000. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. The registrant's Board of Directors or Trustees has a separately designated audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner, Lawrence H. Brown, Jack B. Evans, William J. Schneider and Eugene S. Sunshine. ITEM 6. SCHEDULE OF INVESTMENTS. See Portfolio of Investments in Item 1. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. In the rare event that a municipal issuer held by the Fund were to issue a proxy or that the Fund were to receive a proxy issued by a cash management security, the Adviser would either engage an independent third party to determine how the proxy should be voted or vote the proxy with the consent, or based on the instructions, of the Fund's Board of Directors or Trustees or its representative. In the case of a conflict of interest, the proxy would be submitted to the applicable Fund's Board to determine how the proxy should be voted. A member of the Adviser's legal department would oversee the administration of the voting, and ensure that records were maintained in accordance with Rule 204-2(c)(2) under the Investment Advisers Act of 1940 (17 CFR 275.204-2(c)(2)), reports were filed with the SEC on Form N-PX, and the results were provided to the Board of Directors or Trustees and made available to shareholders as required by applicable rules. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable at this time. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board implemented after the registrant last provided disclosure in response to this Item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act") (17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable because the code is posted on registrant's website at www.nuveen.com/etf and there were no amendments during the period covered by this report. (To view the code, click on the Investor Resources drop down menu box, click on Fund Governance and then Code of Conduct.) (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT Attached hereto. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen Insured Tax-Free Advantage Municipal Fund ----------------------------------------------------------- By (Signature and Title)* /s/ Jessica R. Droeger ---------------------------------------------- Jessica R. Droeger Vice President and Secretary Date: January 6, 2006 ------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Gifford R. Zimmerman ---------------------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) Date: January 6, 2006 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: January 6, 2006 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.