N-CSRS 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) Kevin J. McCarthy Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: (312) 917-7700 ------------------- Date of fiscal year end: October 31 ------------------ Date of reporting period: April 30, 2008 ------------------ 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. Semi-Annual Report | Nuveen Investments April 30, 2008 | Municipal Closed-End Funds Photo of: Small child 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 | [LOGO] It's not what you earn, it's what you keep.(R) | NUVEEN | Investments Photo of: Man working on computer Life is complex. Nuveen makes things e-simple. ----------------------------------------------------------- It only takes a minute to sign up for e-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Investments Fund information is ready--no more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on your computer if you wish. Free e-Reports right to your e-mail! -------------------------------------------------------------------------------- www.investordelivery.com | www.nuveen.com/accountaccess If you receive your Nuveen Fund | If you receive your Nuveen Fund dividends dividends and statements from OR and statements directly from Nuveen. your financial advisor or | brokerage account. | -------------------------------------------------------------------------------- [LOGO] NUVEEN Investments Chairman's LETTER TO SHAREHOLDERS -------------------------------------------------------------------------------- Photo of: Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board It is with a variety of emotions that I write my last letter to Nuveen Fund shareholders. For a dozen years, it has been my privilege to communicate periodically with you through these annual and semi-annual reports about the performance and uses of your Fund. Over that time, I've tried to emphasize the central role that quality municipal bonds can play in creating attractive opportunities for current tax-free income, long-term return and portfolio diversification. I firmly believe that all our Fund shareholders, working in conjunction with a trusted financial advisor, have the potential to reach their financial objectives by using Nuveen Funds as a core component of a well-balanced portfolio. As I noted in your Fund's last shareholder report, Nuveen Investments was acquired in November 2007 by a group led by Madison Dearborn Partners, LLC. While this event had no impact on the investment objectives, portfolio management strategies or dividend policies of your Fund, it did provide a convenient point to begin implementing a long-planned transition in the senior management team at Nuveen. As a part of this process, I will be leaving the Board of the Nuveen Funds on June 30, 2008. In addition, Nuveen and your Fund's Board determined that Fund shareholders would be best served by having an independent director serve as the new chairman of the Fund Board. Therefore, I am very excited and pleased to report that I will be succeeded as chairman of your Nuveen Fund Board by Robert Bremner. A member of the Board since 1997, Bob is a management consultant and private investor not affiliated with Nuveen. Over the years, he has played a critical role on the Fund Board, most recently as the lead independent director, and I know Bob and the other Board members are determined to maintain the standards and commitment to quality that you have come to expect from your Nuveen investment. Please take the time to review the Portfolio Manager's Comments, the Common Share Dividend and Share Price Information, and the Performance Overview sections of this report. All of us are grateful that you have chosen Nuveen Investments as a partner as you pursue your financial goals, and, on behalf of Bob Bremner and the other members of your Fund's Board, let me say 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 June 16, 2008 Portfolio Manager's COMMENTS -------------------------------------------------------------------------------- Nuveen Investments Municipal Closed-End Funds | NQI, NIO, NIF, | NPX, NVG, NEA Portfolio manager Paul Brennan reviews key investment strategies and the six-month performance of these six insured Funds. With 19 years of industry experience, including 17 years at Nuveen, Paul assumed portfolio management responsibility for the six insured Funds in 2006. WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE SIX-MONTH REPORTING PERIOD ENDED APRIL 30, 2008? During this six-month period, the municipal market experienced a great deal of volatility, as issues related to the sub-prime mortgage industry had an indirect, but important, influence on the municipal market's performance. The continued uncertainty about municipal bond insurers contributed to a turbulent municipal market environment, as did tighter liquidity stemming from problems in the credit markets. We sought to capitalize on this environment by continuing to focus on relative value, using a fundamental approach to find undervalued sectors and individual credits with the potential to perform well over the long term. As the market discounted bonds that were out of favor, such as credits backed by certain municipal bond insurers or bonds with investment characteristics perceived to have more risk exposure, we took advantage of opportunities that we considered overlooked and undervalued to selectively add these types of bonds to our portfolios. In addition, we believed that the steepening municipal yield curve began to offer better reward opportunities for purchases made further out on the curve. As a result, many of the additions to our portfolios emphasized longer maturities. We also added exposure to the short end of the yield curve by purchasing variable rate demand obligations (VRDOs) at very attractive yields. VRDOs are floating-rate securities that offer interest rates set daily or weekly based on an index of short-term municipal rates. Our purchase activity during this period was directed toward bonds with unusual structures and characteristics that we believed represented opportunities to add value, manage duration and volatility and support the Funds' income streams. To generate cash for purchases, we selectively sold some holdings with shorter durations,(1) including pre-refunded bonds,(2) at attractive prices resulting from high demand. Selling shorter duration bonds and reinvesting further out on the yield curve also helped to improve the Funds' overall call protection profiles. In addition, a number of our new purchases were funded with cash generated by bond redemptions. Discussions of specific investments are for illustrative purposes only and are not intended as recommendations of individual investments. The views expressed in this commentary represent those of the portfolio manager as of the date of this report and are subject to change at any time, based on market conditions and other factors. The Funds disclaim any obligation to advise shareholders of such changes. (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. (2) Advance refundings, also known as pre-refundings or refinancings, occur when an issuer sells new bonds and uses the proceeds to fund principal and interest payments of older existing bonds. This process often results in lower borrowing costs for bond issuers. ----- 4 ----- As noted earlier, over the course of the entire reporting period, we saw the municipal yield curve steepen, as municipal bond interest rates at the short end of the curve declined and longer rates rose. In this environment, we continued to emphasize a disciplined approach to duration management. As part of this strategy, we use inverse floating rate securities,(3) a type of derivative financial instrument, in all six of these Funds. Inverse floaters typically provide the dual benefit of bringing the Funds' durations closer to our strategic target and enhancing their income-generation capabilities. Going into this period, NPX also used forward interest rate swaps, another type of derivative financial instrument. The goal of this strategy was to help us manage NPX's common share net asset value (NAV) volatility without having a negative impact on its income stream or common share dividends over the short term. HOW DID THE FUNDS PERFORM? Individual results for these Funds, as well as relevant index and peer group information, are presented in the accompanying table. Total Returns on Common Share Net Asset Value* For periods ended 4/30/08 Six-Month 1-Year 5-Year 10-Year NQI -2.19% -2.08% 3.43% 5.29% NIO -1.05% -0.86% 3.72% 5.35% NIF -1.62% -1.31% 3.50% 5.07% NPX -1.16% -1.06% 3.57% 5.35% NVG 0.31% 1.16% 4.51% NA NEA 0.32% 1.60% 4.93% NA Lipper Insured Municipal Debt Funds Average(4) -1.58% -1.68% 3.77% 5.01% Lehman Brothers Insured Municipal Bond Index(5) 0.89% 2.24% 3.98% 5.29% For the six months ended April 30, 2008, the cumulative return on common share NAV for all six Funds in this report underperformed the return on the Lehman Brothers Insured Municipal Bond Index. The six-month returns for NIO, NPX, NVG and NEA exceeded the average return for the Lipper Insured Municipal Debt Funds Average, NIF performed in line with the peer group and NQI underperformed the peer group average. One of the major factors impacting the six-month performance of these Funds in relation to that of the unleveraged Lehman Brothers Insured Municipal Bond Index was the use of financial leverage. While leverage provides opportunities for additional income and total returns for common shareholders, the benefits of leveraging are tied *Six-month returns are cumulative; returns for one-year, five-year, and ten-year are annualized. Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. For additional information, see the individual Performance Overview for your Fund in this report. (3) An inverse floating rate security is a financial instrument designed to pay long-term tax-exempt interest at a rate that varies inversely with a short-term tax-exempt interest rate index. For the Nuveen Funds, the index typically used is the Securities Industry and Financial Markets (SIFM) Municipal Swap Index (previously referred to as the Bond Market Association Index or BMA). Inverse floaters, including those inverse floating rate securities in which the Funds invested during this reporting period, are further defined within the Notes to Financial Statements and Glossary of Terms Used in This Report sections of this shareholder report. (4) The Lipper Insured Municipal Debt Funds Average is calculated using the returns of all closed-end funds in this category for each period as follows: 6 months, 23; 1 year, 23; 5 years, 21; and 10 years, 16. Fund and Lipper returns assume reinvestment of dividends. (5) 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 index do not reflect any expenses. ----- 5 ----- in part to the short-term rates that leveraged Funds pay their preferred shareholders. The Funds' borrowing costs remained relatively high, negatively impacting their total returns. Another key factor with a major impact on the performances of these insured Funds involved their relative exposures to bonds backed by municipal bond insurers that had their credit ratings downgraded. As concern increased about the balance sheets of these insurers, prices on bonds insured by these companies declined for many insured bonds. Price declines were not limited to certain insured bonds during this reporting period, many other bonds saw their prices decline also. The concerns about the financial health of these bond insurers led to poor investment performance relative to other comparable rated bonds. Other factors that influenced the Funds' returns included yield curve and duration positioning, the use of derivatives, and credit exposure and sector allocations. During this six-month period, bonds in the Lehman Brothers Municipal Bond Index with maturities of eight years or less, especially those maturing in two to six years, benefited the most from changes in the interest rate environment. As a result, these shorter maturity bonds generally outperformed credits with longer maturities. Bonds having the longest maturities (22 years and longer) posted the worst returns. As previously noted, one of our strategies during this period focused on adding longer bonds to our portfolios as the yield curve steepened, based on our belief that these bonds offered good long-term potential. This purchase activity helped to extend the Funds' durations, which generally had a negative impact on performance during this six months. Among these Funds, NVG and NEA were better positioned in terms of duration, with less exposure to the underperforming long part of the yield curve than the other four Funds in this report. As mentioned earlier, all six of these Funds used inverse floaters as part of our duration management strategies. These inverse floaters negatively impacted performance due to the fact that they effectively increased the Funds' exposure to longer maturity bonds during a period when shorter maturities were in favor in the market. However, the inverse floaters also benefited the Funds by helping to support their income streams. ----- 6 ----- In general, bonds with higher credit quality, except those insured by the troubled bond insurers, outperformed those with lower credit quality. The underperformance of the lower quality sector was largely the result of risk-averse investors' flight to quality as disruptions in the financial and housing markets deepened. The performances of these six insured Funds generally benefited from their higher quality holdings. This included pre-refunded bonds, which performed exceptionally well due primarily to their shorter effective maturities and higher credit quality. Among these Funds, NVG, NEA, and NIO had the heaviest weightings of pre-refunded bonds, while NQI held the fewest of these bonds. Sectors of the market that generally contributed positively to the Funds' performances included general obligation bonds, water and sewer, electric utilities and special tax issues. RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES AND FUND POLICY CHANGES The portfolios of investments reflect the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. During the period covered by this report, at least one rating agency reduced the rating for AMBAC-insured and MBIA-insured bonds to AA and at least one rating agency further reduced the ratings for FGIC-insured and XLCA-insured bonds to BB. Subsequent to April 30, 2008, and at the time this report was prepared, at least one rating agency further reduced the rating for CIFG-insured bonds to BB and MBIA-insured bonds to A. As of April 30, 2008, at least one rating agency has placed XLCA-insured bonds on "negative credit watch" and one or more rating agencies have placed each of these insurers on "negative outlook", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers. It is important to note that municipal bonds historically have had a very low rate of default. During March 2008, the Nuveen Funds' Board of Directors/Trustees approved changes to the investment policies of all of the Nuveen insured municipal closed-end funds. The new policies require that (1) at least 80% of a Fund's net assets must be invested in insured municipal bonds guaranteed by insurers rated "A" or better by at least one rating agency at the time of purchase; (2) at least 80% of a Fund's net assets must be invested in municipal bonds rated "AA" or better by at least one rating agency (with or without insurance), deemed to be of comparable quality by the Adviser, or backed by an escrow or trust containing sufficient U.S. Government or Government agency ----- 7 ----- securities at the time of purchase; and (3) up to 20% of a Fund's net assets may be invested in uninsured municipal bonds rated "A" to "BBB" by at least one rating agency or deemed to be of comparable quality by the Adviser at the time of purchase. These policy changes are designed to increase portfolio manager flexibility and retain the insured nature of the Funds' investment portfolios for current and future environments. Some Funds may require shareholder approval prior to implementing these policy changes. RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED MARKETS Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the preferred shares issued by these Funds than there were offers to buy. This meant that these auctions "failed to clear" and that many or all auction preferred shareholders who wanted to sell their shares in these auctions were unable to do so. This decline in liquidity in auction preferred shares did not lower the credit quality of these shares, and auction preferred shareholders unable to sell their shares received distributions at the "maximum rate" applicable to failed auctions as calculated in accordance with the pre-established terms of the auction preferred shares. At the time this report was prepared, the Funds' managers could not predict when future auctions might succeed in attracting sufficient buyers for the shares offered, if ever. The Funds' managers are working diligently to refund the auction preferred shares, and have made progress in these efforts, but at present there is no assurance that these efforts will succeed. These developments generally do not affect the management or investment policies of these Funds. However, one implication of these auction failures for common shareholders is that the Funds' cost of leverage will likely be higher, at least temporarily, than it otherwise would have been had the auctions continued to be successful. As a result, the Funds' future common share earnings may be lower than they otherwise would have been. For current, up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at: http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx. ----- 8 ----- Common Share Dividend and Share Price INFORMATION -------------------------------------------------------------------------------- As previously noted, all of the Funds in this report use leverage to potentially enhance opportunities for additional income for common shareholders. This strategy continued to provide support for the Funds' income streams during this turbulent period. As a result, the dividends of all six Funds remained stable throughout the six-month reporting period ended April 30, 2008. Due to capital gains generated by normal portfolio activity, common shareholders of NIO received a long-term capital gains distribution of $0.0019 per share at the end of December 2007. 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 common share 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 common share NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of April 30, 2008, all of the Funds in this report had positive UNII balances, based upon our best estimate, for tax purposes and negative UNII balances for financial statement purposes. As of April 30, 2008, the Funds' common share prices were trading at discounts to their common share NAVs as shown in the accompanying chart: 4/30/08 Six-Month Discount Average Discount NQI -5.57% -6.12% NIO -6.40% -8.45% NIF -8.93% -10.32% NPX -10.18% -10.80% NVG -8.92% -10.07% NEA -2.57% -3.00% ----- 9 ----- NQI | Nuveen Insured Performance | Quality Municipal OVERVIEW | Fund, Inc. as of April 30, 2008 Credit Quality (as a % of total investments)(1) PIE CHART: Insured 78% U.S. Guaranteed 19% GNMA Guaranteed 3% BAR CHART: 2007-2008 Monthly Tax-Free Dividends Per Share May $0.0605 Jun 0.0605 Jul 0.0605 Aug 0.0605 Sep 0.0605 Oct 0.0605 Nov 0.0605 Dec 0.0605 Jan 0.0605 Feb 0.0605 Mar 0.0605 Apr 0.0605 LINE CHART: Share Price Performance -- Weekly Closing Price 5/01/07 $14.71 14.71 14.63 14.62 14.59 14.46 14.33 14.09 14.03 14.11 13.97 13.80 13.73 13.88 13.95 13.80 13.47 13.66 13.70 14.27 14.03 13.92 13.84 13.94 13.72 13.80 13.60 13.73 13.50 13.29 13.30 13.44 13.68 13.40 13.20 13.34 14.10 14.40 13.94 14.14 14.15 14.26 13.55 13.58 13.12 13.68 13.20 13.03 13.32 13.36 13.26 13.36 13.33 4/30/08 13.40 Fund Snapshot -------------------------------------------------------------------------------- Common Share Price $ 13.40 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.19 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -5.57% -------------------------------------------------------------------------------- Market Yield 5.42% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 7.53% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $543,235 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 17.06 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 12.27 -------------------------------------------------------------------------------- Average Annual Total Return (Inception 12/19/90) -------------------------------------------------------------------------------- On Share Price On NAV -------------------------------------------------------------------------------- 6-Month (Cumulative) 1.10% -2.19% -------------------------------------------------------------------------------- 1-Year -3.88% -2.08% -------------------------------------------------------------------------------- 5-Year 1.57% 3.43% -------------------------------------------------------------------------------- 10-Year 4.90% 5.29% -------------------------------------------------------------------------------- States (as a % of total investments) -------------------------------------------------------------------------------- California 19.4% -------------------------------------------------------------------------------- Texas 10.9% -------------------------------------------------------------------------------- Illinois 9.6% -------------------------------------------------------------------------------- New York 9.6% -------------------------------------------------------------------------------- Washington 7.9% -------------------------------------------------------------------------------- Florida 4.6% -------------------------------------------------------------------------------- Nevada 3.6% -------------------------------------------------------------------------------- Kentucky 3.6% -------------------------------------------------------------------------------- Louisiana 3.0% -------------------------------------------------------------------------------- Ohio 2.6% -------------------------------------------------------------------------------- Colorado 2.5% -------------------------------------------------------------------------------- Arizona 2.0% -------------------------------------------------------------------------------- Hawaii 2.0% -------------------------------------------------------------------------------- Other 18.7% -------------------------------------------------------------------------------- Industries (as a % of total investments) -------------------------------------------------------------------------------- Tax Obligation/Limited 19.8% -------------------------------------------------------------------------------- Transportation 19.7% -------------------------------------------------------------------------------- U.S. Guaranteed 19.3% -------------------------------------------------------------------------------- Tax Obligation/General 12.7% -------------------------------------------------------------------------------- Health Care 9.7% -------------------------------------------------------------------------------- Utilities 8.0% -------------------------------------------------------------------------------- Other 10.8% -------------------------------------------------------------------------------- (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (2) 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. ----- 10 ----- NIO | Nuveen Insured Performance | Municipal Opportunity OVERVIEW | Fund, Inc. as of April 30, 2008 Credit Quality (as a % of total investments)(1) PIE CHART: Insured 71% U.S. Guaranteed 29% BAR CHART: 2007-2008 Monthly Tax-Free Dividends Per Share(3) May $0.0615 Jun 0.0615 Jul 0.0615 Aug 0.0615 Sep 0.0615 Oct 0.0580 Nov 0.0580 Dec 0.0580 Jan 0.0580 Feb 0.0580 Mar 0.0580 Apr 0.0580 LINE CHART: Share Price Performance -- Weekly Closing Price 5/01/07 $14.92 14.95 14.94 14.99 14.82 14.80 14.58 14.15 14.22 14.25 14.12 14.10 14.13 14.18 14.11 13.71 14.05 14.01 14.12 14.37 14.20 14.02 14.12 13.91 13.62 13.64 13.60 13.58 13.30 13.12 13.39 13.29 13.29 13.16 13.26 13.19 13.83 13.86 13.73 14.30 14.20 14.51 13.52 13.47 13.04 13.49 12.99 12.85 13.30 13.23 13.41 13.45 13.61 4/30/08 13.60 Fund Snapshot -------------------------------------------------------------------------------- Common Share Price $ 13.60 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.53 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -6.40% -------------------------------------------------------------------------------- Market Yield 5.12% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 7.11% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $1,178,785 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.11 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 10.44 -------------------------------------------------------------------------------- Average Annual Total Return (Inception 9/19/91) -------------------------------------------------------------------------------- On Share Price On NAV -------------------------------------------------------------------------------- 6-Month (Cumulative) 2.93% -1.05% -------------------------------------------------------------------------------- 1-Year -3.90% -0.86% -------------------------------------------------------------------------------- 5-Year 2.61% 3.72% -------------------------------------------------------------------------------- 10-Year 4.72% 5.35% -------------------------------------------------------------------------------- States (as a % of total investments) -------------------------------------------------------------------------------- California 20.3% -------------------------------------------------------------------------------- Texas 9.9% -------------------------------------------------------------------------------- Alabama 6.8% -------------------------------------------------------------------------------- Nevada 5.0% -------------------------------------------------------------------------------- New York 4.6% -------------------------------------------------------------------------------- Louisiana 4.5% -------------------------------------------------------------------------------- Colorado 4.4% -------------------------------------------------------------------------------- Michigan 4.0% -------------------------------------------------------------------------------- Florida 3.9% -------------------------------------------------------------------------------- Illinois 3.8% -------------------------------------------------------------------------------- Massachusetts 3.3% -------------------------------------------------------------------------------- South Carolina 3.2% -------------------------------------------------------------------------------- Ohio 2.6% -------------------------------------------------------------------------------- Indiana 2.2% -------------------------------------------------------------------------------- Pennsylvania 2.0% -------------------------------------------------------------------------------- Other 19.5% -------------------------------------------------------------------------------- Industries (as a % of total investments) -------------------------------------------------------------------------------- U.S. Guaranteed 28.5% -------------------------------------------------------------------------------- Tax Obligation/Limited 19.2% -------------------------------------------------------------------------------- Transportation 13.4% -------------------------------------------------------------------------------- Tax Obligation/General 12.0% -------------------------------------------------------------------------------- Utilities 8.5% -------------------------------------------------------------------------------- Health Care 6.8% -------------------------------------------------------------------------------- Water and Sewer 6.1% -------------------------------------------------------------------------------- Other 5.5% -------------------------------------------------------------------------------- (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (2) 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. (3) The Fund paid shareholders a capital gains distribution in December 2007 of $0.0019 per share. ----- 11 ----- NIF | Nuveen Premier Performance | Insured Municipal OVERVIEW | Income Fund, Inc. as of April 30, 2008 Credit Quality (as a % of total investments)(1) PIE CHART: Insured 78% U.S. Guaranteed 21% GNMA Guaranteed 1% BAR CHART: 2007-2008 Monthly Tax-Free Dividends Per Share May $0.0610 Jun 0.0570 Jul 0.0570 Aug 0.0570 Sep 0.0570 Oct 0.0530 Nov 0.0530 Dec 0.0530 Jan 0.0530 Feb 0.0530 Mar 0.0530 Apr 0.0530 LINE CHART: Share Price Performance -- Weekly Closing Price 5/01/07 $14.78 14.78 14.83 14.92 14.84 14.83 14.24 13.87 13.78 13.81 13.84 13.72 13.85 13.80 13.79 13.72 13.44 13.61 13.74 14.04 13.82 13.75 13.78 13.67 13.45 13.31 13.24 13.30 12.92 12.53 12.75 12.93 13.03 12.81 12.81 13.05 13.58 13.63 13.41 13.62 13.48 13.62 12.91 13.14 12.54 13.02 12.65 12.64 13.08 13.15 13.17 13.14 13.04 4/30/08 13.06 Fund Snapshot -------------------------------------------------------------------------------- Common Share Price $ 13.06 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.34 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -8.93% -------------------------------------------------------------------------------- Market Yield 4.87% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 6.76% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $278,488 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 13.95 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 10.57 -------------------------------------------------------------------------------- Average Annual Total Return (Inception 12/19/91) -------------------------------------------------------------------------------- On Share Price On NAV -------------------------------------------------------------------------------- 6-Month (Cumulative) 0.96% -1.62% -------------------------------------------------------------------------------- 1-Year -6.80% -1.31% -------------------------------------------------------------------------------- 5-Year 1.55% 3.50% -------------------------------------------------------------------------------- 10-Year 4.34% 5.07% -------------------------------------------------------------------------------- States (as a % of total investments) -------------------------------------------------------------------------------- California 22.1% -------------------------------------------------------------------------------- Illinois 10.9% -------------------------------------------------------------------------------- Washington 10.9% -------------------------------------------------------------------------------- Texas 6.6% -------------------------------------------------------------------------------- Colorado 6.4% -------------------------------------------------------------------------------- New York 4.2% -------------------------------------------------------------------------------- Nevada 3.0% -------------------------------------------------------------------------------- Michigan 2.8% -------------------------------------------------------------------------------- Oregon 2.7% -------------------------------------------------------------------------------- Georgia 2.6% -------------------------------------------------------------------------------- Hawaii 2.4% -------------------------------------------------------------------------------- Indiana 2.3% -------------------------------------------------------------------------------- Florida 2.3% -------------------------------------------------------------------------------- Tennessee 2.3% -------------------------------------------------------------------------------- Other 18.5% -------------------------------------------------------------------------------- Industries (as a % of total investments) -------------------------------------------------------------------------------- Tax Obligation/General 23.7% -------------------------------------------------------------------------------- U.S. Guaranteed 20.7% -------------------------------------------------------------------------------- Transportation 17.2% -------------------------------------------------------------------------------- Tax Obligation/Limited 16.1% -------------------------------------------------------------------------------- Health Care 6.7% -------------------------------------------------------------------------------- Utilities 6.5% -------------------------------------------------------------------------------- Water and Sewer 5.1% -------------------------------------------------------------------------------- Other 4.0% -------------------------------------------------------------------------------- (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (2) 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. ----- 12 ----- NPX | Nuveen Insured Performance | Premium Income OVERVIEW | Municipal Fund 2 as of April 30, 2008 Credit Quality (as a % of total investments)(1) PIE CHART: Insured 77% U.S. Guaranteed 22% GNMA Guaranteed 1% BAR CHART: 2007-2008 Monthly Tax-Free Dividends Per Share May $0.0540 Jun 0.0540 Jul 0.0540 Aug 0.0540 Sep 0.0515 Oct 0.0515 Nov 0.0515 Dec 0.0515 Jan 0.0515 Feb 0.0515 Mar 0.0515 Apr 0.0515 LINE CHART: Share Price Performance -- Weekly Closing Price 5/01/07 $13.20 13.26 13.24 13.28 13.14 13.02 12.88 12.62 12.60 12.78 12.67 12.54 12.42 12.55 12.70 12.41 12.35 12.46 12.59 12.67 12.54 12.49 12.45 12.34 12.28 12.45 12.21 12.18 11.75 11.55 11.74 12.00 12.03 11.87 11.74 12.17 12.51 12.56 12.48 12.57 12.58 12.53 11.84 11.84 11.56 12.00 11.45 11.49 11.66 11.81 11.99 11.97 11.90 4/30/08 11.91 Fund Snapshot -------------------------------------------------------------------------------- Common Share Price $ 11.91 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.26 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -10.18% -------------------------------------------------------------------------------- Market Yield 5.19% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 7.21% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $495,189 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 14.78 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 10.49 -------------------------------------------------------------------------------- Average Annual Total Return (Inception 7/22/93) -------------------------------------------------------------------------------- On Share Price On NAV -------------------------------------------------------------------------------- 6-Month (Cumulative) 0.31% -1.16% -------------------------------------------------------------------------------- 1-Year -4.65% -1.06% -------------------------------------------------------------------------------- 5-Year 1.61% 3.57% -------------------------------------------------------------------------------- 10-Year 5.32% 5.35% -------------------------------------------------------------------------------- States (as a % of total investments) -------------------------------------------------------------------------------- California 17.0% -------------------------------------------------------------------------------- Texas 10.1% -------------------------------------------------------------------------------- New York 8.3% -------------------------------------------------------------------------------- Pennsylvania 7.6% -------------------------------------------------------------------------------- Colorado 6.0% -------------------------------------------------------------------------------- Hawaii 4.7% -------------------------------------------------------------------------------- Washington 4.3% -------------------------------------------------------------------------------- Louisiana 3.9% -------------------------------------------------------------------------------- Wisconsin 3.8% -------------------------------------------------------------------------------- New Jersey 2.9% -------------------------------------------------------------------------------- Alabama 2.5% -------------------------------------------------------------------------------- Georgia 2.4% -------------------------------------------------------------------------------- North Dakota 2.3% -------------------------------------------------------------------------------- Nebraska 2.2% -------------------------------------------------------------------------------- Oregon 2.0% -------------------------------------------------------------------------------- Other 20.0% -------------------------------------------------------------------------------- Industries (as a % of total investments) -------------------------------------------------------------------------------- U.S. Guaranteed 21.9% -------------------------------------------------------------------------------- Utilities 19.4% -------------------------------------------------------------------------------- Tax Obligation/Limited 15.0% -------------------------------------------------------------------------------- Transportation 10.7% -------------------------------------------------------------------------------- Tax Obligation/General 9.8% -------------------------------------------------------------------------------- Water and Sewer 7.9% -------------------------------------------------------------------------------- Education and Civic Organizations 7.0% -------------------------------------------------------------------------------- Health Care 5.5% -------------------------------------------------------------------------------- Other 2.8% -------------------------------------------------------------------------------- (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (2) 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. ----- 13 ----- NVG | Nuveen Insured Performance | Dividend Advantage OVERVIEW | Municipal Fund as of April 30, 2008 Credit Quality (as a % of total investments)(1) PIE CHART: Insured 63% U.S. Guaranteed 29% AAA (Uninsured) 3% AA (Uninsured) 4% BBB (Uninsured) 1% BAR CHART: 2007-2008 Monthly Tax-Free Dividends Per Share May $0.0640 Jun 0.0605 Jul 0.0605 Aug 0.0605 Sep 0.0605 Oct 0.0575 Nov 0.0575 Dec 0.0575 Jan 0.0575 Feb 0.0575 Mar 0.0575 Apr 0.0575 LINE CHART: Share Price Performance -- Weekly Closing Price 5/01/07 $15.37 15.42 15.45 15.30 15.08 15.04 14.45 14.06 14.01 14.12 14.04 13.85 13.72 13.79 13.97 13.72 13.63 13.90 13.95 14.26 14.12 14.01 14.00 13.72 13.77 13.95 14.00 13.43 13.13 13.04 13.33 13.39 13.44 13.17 13.00 13.35 13.89 13.92 13.74 13.95 13.92 14.08 13.34 13.38 13.10 13.43 13.04 13.00 13.30 13.27 13.55 13.62 13.40 4/30/08 13.47 Fund Snapshot -------------------------------------------------------------------------------- Common Share Price $ 13.47 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.79 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -8.92% -------------------------------------------------------------------------------- Market Yield 5.12% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 7.11% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 440,873 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 13.03 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 9.19 -------------------------------------------------------------------------------- Average Annual Total Return (Inception 3/25/02) -------------------------------------------------------------------------------- On Share Price On NAV -------------------------------------------------------------------------------- 6-Month (Cumulative) 0.78% 0.31% -------------------------------------------------------------------------------- 1-Year -7.11% 1.16% -------------------------------------------------------------------------------- 5-Year 3.82% 4.51% -------------------------------------------------------------------------------- Since Inception 4.38% 6.48% -------------------------------------------------------------------------------- States (as a % of total investments) -------------------------------------------------------------------------------- Texas 16.3% -------------------------------------------------------------------------------- California 11.8% -------------------------------------------------------------------------------- Indiana 10.3% -------------------------------------------------------------------------------- Washington 8.0% -------------------------------------------------------------------------------- Illinois 7.8% -------------------------------------------------------------------------------- Florida 7.4% -------------------------------------------------------------------------------- Tennessee 6.2% -------------------------------------------------------------------------------- Louisiana 3.7% -------------------------------------------------------------------------------- Colorado 3.6% -------------------------------------------------------------------------------- New York 3.1% -------------------------------------------------------------------------------- Alabama 2.7% -------------------------------------------------------------------------------- Other 19.1% -------------------------------------------------------------------------------- Industries (as a % of total investments) -------------------------------------------------------------------------------- U.S. Guaranteed 29.4% -------------------------------------------------------------------------------- Transportation 13.8% -------------------------------------------------------------------------------- Tax Obligation/General 13.2% -------------------------------------------------------------------------------- Tax Obligation/Limited 13.2% -------------------------------------------------------------------------------- Utilities 8.3% -------------------------------------------------------------------------------- Health Care 7.5% -------------------------------------------------------------------------------- Education and Civic Organizations 6.9% -------------------------------------------------------------------------------- Other 7.7% -------------------------------------------------------------------------------- (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (2) 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. ----- 14 ----- NEA | Nuveen Insured Performance | Tax-Free Advantage OVERVIEW | Municipal Fund as of April 30, 2008 Credit Quality (as a % of total investments)(1) PIE CHART: Insured 64% U.S. Guaranteed 28% AAA (Uninsured) 2% AA (Uninsured) 2% A (Uninsured) 2% BBB (Uninsured) 2% BAR CHART: 2007-2008 Monthly Tax-Free Dividends Per Share May $0.0590 Jun 0.0590 Jul 0.0590 Aug 0.0590 Sep 0.0590 Oct 0.0590 Nov 0.0590 Dec 0.0590 Jan 0.0590 Feb 0.0590 Mar 0.0590 Apr 0.0590 LINE CHART: Share Price Performance -- Weekly Closing Price 5/01/07 $14.66 14.66 14.69 14.71 14.76 15.00 14.57 14.67 14.36 14.48 14.70 14.52 14.62 14.86 14.94 14.85 13.85 13.80 14.33 14.47 14.41 14.18 14.20 14.33 14.38 14.30 14.03 14.19 13.79 13.41 13.42 14.15 14.15 14.26 14.05 14.10 14.78 14.82 14.76 14.73 15.11 15.01 14.00 14.08 13.59 13.70 13.56 13.46 13.85 14.25 14.09 14.10 13.97 4/30/08 14.03 Fund Snapshot -------------------------------------------------------------------------------- Common Share Price $ 14.03 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.40 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -2.57% -------------------------------------------------------------------------------- Market Yield 5.05% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 7.01% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 266,808 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.78 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 9.53 -------------------------------------------------------------------------------- Average Annual Total Return (Inception 11/21/02) -------------------------------------------------------------------------------- On Share Price On NAV -------------------------------------------------------------------------------- 6-Month (Cumulative) 0.58% 0.32% -------------------------------------------------------------------------------- 1-Year 1.30% 1.60% -------------------------------------------------------------------------------- 5-Year 4.26% 4.93% -------------------------------------------------------------------------------- Since Inception 4.37% 5.64% -------------------------------------------------------------------------------- States (as a % of total investments) -------------------------------------------------------------------------------- California 19.2% -------------------------------------------------------------------------------- Texas 8.6% -------------------------------------------------------------------------------- Michigan 7.6% -------------------------------------------------------------------------------- New York 7.0% -------------------------------------------------------------------------------- Indiana 6.3% -------------------------------------------------------------------------------- Washington 5.9% -------------------------------------------------------------------------------- Alabama 5.6% -------------------------------------------------------------------------------- Pennsylvania 4.9% -------------------------------------------------------------------------------- South Carolina 4.7% -------------------------------------------------------------------------------- Wisconsin 4.3% -------------------------------------------------------------------------------- Colorado 3.7% -------------------------------------------------------------------------------- Arizona 3.6% -------------------------------------------------------------------------------- Other 18.6% -------------------------------------------------------------------------------- Industries (as a % of total investments) -------------------------------------------------------------------------------- U.S. Guaranteed 28.4% -------------------------------------------------------------------------------- Tax Obligation/Limited 23.0% -------------------------------------------------------------------------------- Tax Obligation/General 14.1% -------------------------------------------------------------------------------- Health Care 11.3% -------------------------------------------------------------------------------- Utilities 9.3% -------------------------------------------------------------------------------- Transportation 6.4% -------------------------------------------------------------------------------- Other 7.5% -------------------------------------------------------------------------------- (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (2) 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 ----- NQI | Nuveen Insured Quality Municipal Fund, Inc. | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Alabama - 1.6% (1.0% of Total Investments) $ 1,135 Birmingham Waterworks and Sewerage Board, Alabama, Water and 1/13 at 100.00 AAA $ 1,239,499 Sewerage Revenue Bonds, Series 2002B, 5.250%, 1/01/20 (Pre-refunded 1/01/13) - MBIA Insured 7,500 Huntsville Healthcare Authority, Alabama, Revenue Bonds, Series 6/15 at 100.00 AAA 7,611,375 2005A, 5.000%, 6/01/24 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,635 Total Alabama 8,850,874 ------------------------------------------------------------------------------------------------------------------------------------ Arizona - 3.4% (2.0% of Total Investments) 3,670 Mesa, Arizona, Utility System Revenue Bonds, Reset Option Longs, 7/17 at 100.00 Aaa 2,883,556 Series 11032-11034, 7.450%, 7/01/31 - FSA Insured (IF) 9,200 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/12 at 100.00 AA- 8,881,864 Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 - FGIC Insured (Alternative Minimum Tax) 8,755 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic Plaza, No Opt. Call AA 6,799,221 Series 2005B, 0.000%, 7/01/39 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 21,625 Total Arizona 18,564,641 ------------------------------------------------------------------------------------------------------------------------------------ Arkansas - 0.8% (0.5% of Total Investments) 4,250 University of Arkansas, Fayetteville, Revenue Bonds, Medical 11/14 at 100.00 Aaa 4,390,420 Sciences Campus, Series 2004B, 5.000%, 11/01/24 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ California - 32.6% (19.4% of Total Investments) 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 4,186,980 4,000 5.000%, 12/01/26 - MBIA Insured 12/14 at 100.00 AAA 4,119,640 1,275 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aaa 1,353,693 Occidental College, Series 2005A, 5.250%, 10/01/23 - MBIA Insured 7,115 California Infrastructure Economic Development Bank, First Lien 1/28 at 100.00 AAA 7,599,816 Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A, 5.000%, 7/01/33 (Pre-refunded 1/01/28) - AMBAC Insured (UB) 13,175 California Pollution Control Financing Authority, Revenue 9/09 at 101.00 AAA 13,564,453 Refunding Bonds, Southern California Edison Company, Series 1999A, 5.450%, 9/01/29 - MBIA Insured 13,445 California State, General Obligation Bonds, Series 2002, 5.000%, 4/12 at 100.00 AAA 13,592,088 4/01/27 - AMBAC Insured 7,055 California State, General Obligation Bonds, Series 2002, 5.000%, 4/12 at 100.00 AAA 7,613,615 4/01/27 (Pre-refunded 4/01/12) - AMBAC Insured 5 California State, General Obligation Bonds, Series 2004, 5.000%, 4/14 at 100.00 AAA 5,066 4/01/31 - AMBAC Insured 3,745 California State, General Obligation Bonds, Series 2004, 5.000%, 4/14 at 100.00 AAA 4,123,844 4/01/31 (Pre-refunded 4/01/14) - AMBAC Insured 8,000 California, General Obligation Bonds, Series 2002, 5.000%, 10/12 at 100.00 AAA 8,078,560 10/01/32 - MBIA Insured 2,340 Cerritos Public Financing Authority, California, Tax Allocation 11/17 at 102.00 AAA 2,374,796 Revenue Bonds, Los Cerritos Redevelopment Projects, Series 2002A, 5.000%, 11/01/24 - AMBAC Insured 5,000 Clovis Unified School District, Fresno County, California, General No Opt. Call AA- 2,044,900 Obligation Bonds, Series 2001A, 0.000%, 8/01/25 - FGIC Insured
----- 16 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ California (continued) 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 $ 9,032,875 22,000 0.000%, 1/15/31 - MBIA Insured 1/10 at 29.11 AAA 5,456,440 50,000 0.000%, 1/15/37 - MBIA Insured 1/10 at 20.19 AAA 8,344,000 5,000 Garden Grove, California, Certificates of Participation, 3/12 at 101.00 AAA 5,054,900 Financing Project, Series 2002A, 5.125%, 3/01/32 - AMBAC Insured 8,500 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A 8,182,440 Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/35 - FGIC Insured (UB) 3,795 Kern Community College District, California, General Obligation 11/15 at 100.00 AAA 4,023,725 Bonds, Series 2005, 5.000%, 11/01/20 - FSA Insured 5,795 Kern Community College District, California, General Obligation No Opt. Call AAA 2,391,191 Bonds, Series 2006, 0.000%, 11/01/25 - FSA Insured 5,368 Moreno Valley Public Finance Authority, California, GNMA 1/12 at 105.00 Aaa 5,748,001 Collateralized Assisted Living Housing Revenue Bonds, CDC Assisted Living Project, Series 2000A, 7.500%, 1/20/42 5,425 Ontario Redevelopment Financing Authority, San Bernardino County, 8/08 at 100.00 AAA 6,023,269 California, Revenue Bonds, Redevelopment Project 1, Series 1993, 5.850%, 8/01/22 - MBIA Insured (ETM) 3,615 Pasadena Unified School District, Los Angeles County, California, 5/13 at 100.00 AAA 3,952,930 General Obligation Bonds, Series 2003D, 5.000%, 5/01/24 (Pre-refunded 5/01/13) - MBIA Insured 2,590 Riverside County Public Financing Authority, California, Tax 10/14 at 100.00 A- 2,548,482 Allocation Bonds, Multiple Projects, Series 2004, 5.000%, 10/01/25 - XLCA Insured 2,000 San Diego Redevelopment Agency, California, Subordinate Lien Tax 9/14 at 100.00 A- 2,079,060 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 - MBIA Insured (Alternative Minimum Tax) 5/11 at 100.00 AAA 7,208,928 12,690 5.250%, 5/01/31 - MBIA Insured (Alternative Minimum Tax) 5/11 at 100.00 AAA 12,523,253 San Francisco Bay Area Rapid Transit District, California, Sales Tax Revenue Bonds, Series 2005A: 2,000 5.000%, 7/01/21 - MBIA Insured 7/15 at 100.00 AAA 2,103,240 3,655 5.000%, 7/01/22 - MBIA Insured 7/15 at 100.00 AAA 3,822,691 3,840 5.000%, 7/01/23 - MBIA Insured 7/15 at 100.00 AAA 4,011,341 8,965 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/17 at 100.00 AAA 8,248,697 Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30 - MBIA Insured (UB) 3,500 Saugus Union School District, Los Angeles County, California, No Opt. Call A+ 1,579,760 General Obligation Bonds, Series 2006, 0.000%, 8/01/23 - FGIC Insured 1,000 Sierra Joint Community College District, Tahoe Truckee, 8/14 at 100.00 A+ 1,022,000 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 A+ 1,609,650 California, General Obligation Bonds, School Facilities Improvement District 2, Series 2005A, 5.000%, 8/01/27 - FGIC Insured 3,600 Ventura County Community College District, California, General 8/15 at 100.00 AAA 3,703,356 Obligation Bonds, Series 2005B, 5.000%, 8/01/28 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 254,298 Total California 177,327,680 ------------------------------------------------------------------------------------------------------------------------------------ Colorado - 4.2% (2.5% of Total Investments) 2,015 Board of Trustees of the University of Northern Colorado, Revenue 6/15 at 100.00 AAA 2,106,562 Bonds, Series 2005, 5.000%, 6/01/22 - FSA Insured Denver City and County, Colorado, Airport Revenue Bonds, Series 2006: 5,365 5.000%, 11/15/23 - FGIC Insured (UB) 11/16 at 100.00 A+ 5,390,806 3,300 5.000%, 11/15/24 - FGIC Insured (UB) 11/16 at 100.00 A+ 3,300,792 4,335 5.000%, 11/15/25 - FGIC Insured (UB) 11/16 at 100.00 A+ 4,314,929
----- 17 ----- NQI | Nuveen Insured Quality Municipal Fund, Inc. (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Colorado (continued) $ 9,780 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AAA $ 2,336,735 Series 2000B, 0.000%, 9/01/32 - MBIA Insured 10,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call AAA 3,310,300 Series 2004A, 0.000%, 9/01/27 - MBIA Insured 1,250 Jefferson County School District R1, Colorado, General Obligation 12/14 at 100.00 AAA 1,292,638 Bonds, Series 2004, 5.000%, 12/15/24 - FSA Insured 1,000 University of Colorado, Enterprise System Revenue Bonds, Series 6/15 at 100.00 AA- 1,002,910 2005, 5.000%, 6/01/30 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 37,045 Total Colorado 23,055,672 ------------------------------------------------------------------------------------------------------------------------------------ District of Columbia - 2.3% (1.4% of Total Investments) 8,000 Washington Convention Center Authority, District of Columbia, 10/08 at 101.00 AAA 8,171,520 Senior Lien Dedicated Tax Revenue Bonds, Series 1998, 5.000%, 10/01/21 (Pre-refunded 10/01/08) - AMBAC Insured 1,335 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 1,102,817 Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals 1606, 8.033%, 10/01/30 - AMBAC Insured (IF) 3,920 Washington DC Convention Center Authority, Dedicated Tax Revenue 10/16 at 100.00 AAA 3,066,342 Bonds, Residual Series 1730, 1731, 1736, 5.233%, 10/01/36 - AMBAC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ 13,255 Total District of Columbia 12,340,679 ------------------------------------------------------------------------------------------------------------------------------------ Florida - 7.8% (4.6% of Total Investments) 3,450 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AAA 3,554,811 Series 2005, 5.000%, 10/01/24 - MBIA Insured 3,250 Florida State Board of Education, Full Faith and Credit Public 6/13 at 101.00 AAA 3,379,383 Education Capital Outlay Bonds, Series 2003J, 5.000%, 6/01/22 - AMBAC Insured 20,000 Lee County, Florida, Airport Revenue Bonds, Series 2000A, 5.750%, 10/10 at 101.00 AAA 20,351,999 10/01/25 - FSA Insured (Alternative Minimum Tax) 4,115 Miami-Dade County Housing Finance Authority, Florida, Multifamily 7/11 at 100.00 AAA 4,144,134 Housing Revenue Bonds, Monterey Pointe Apartments, Series 2001-2A, 5.850%, 7/01/37 - FSA Insured (Alternative Minimum Tax) 7,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 A2 6,873,650 International Airport, Series 2002, 5.375%, 10/01/32 - FGIC Insured (Alternative Minimum Tax) 3,780 Palm Beach County School Board, Florida, Certificates of 8/13 at 100.00 AAA 3,968,395 Participation, Series 2003A, 5.000%, 8/01/16 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 41,595 Total Florida 42,272,372 ------------------------------------------------------------------------------------------------------------------------------------ Georgia - 0.3% (0.2% of Total Investments) 1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/14 at 100.00 AAA 1,039,340 2004, 5.000%, 11/01/22 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ Hawaii - 3.3% (2.0% of Total Investments) 1,620 Hawaii County, Hawaii, General Obligation Bonds, Series 2003A, 7/13 at 100.00 AAA 1,688,656 5.000%, 7/15/21 - FSA Insured Hawaii Department of Transportation, Airport System Revenue Refunding Bonds, Series 2000B: 8,785 6.625%, 7/01/18 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 A2 9,114,086 7,000 6.000%, 7/01/19 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 A2 7,147,770 ------------------------------------------------------------------------------------------------------------------------------------ 17,405 Total Hawaii 17,950,512 ------------------------------------------------------------------------------------------------------------------------------------
----- 18 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Illinois - 16.1% (9.6% of Total Investments) $ 9,500 Chicago, Illinois, Second Lien General Airport Revenue Refunding 1/10 at 101.00 AAA $ 9,721,730 Bonds, O'Hare International Airport, Series 1999, 5.500%, 1/01/15 - AMBAC Insured (Alternative Minimum Tax) 2,875 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 2,949,578 O'Hare International Airport, Series 2005A, 5.250%, 1/01/24 - MBIA Insured 25,000 Illinois Health Facilities Authority, Revenue Bonds, Iowa Health 2/10 at 101.00 AAA 26,148,999 System, Series 2000, 5.875%, 2/15/30 - AMBAC Insured (ETM) 13,275 Illinois, General Obligation Bonds, Illinois FIRST Program, 5/11 at 100.00 AAA 13,770,556 Series 2001, 5.250%, 5/01/26 - FSA Insured 15,785 Illinois, General Obligation Bonds, Illinois FIRST Program, 4/12 at 100.00 AAA 16,438,499 Series 2002, 5.250%, 4/01/27 - FSA Insured 18,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 7,842,960 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 10,766,500 Infrastructure Projects, Series 2001B, 5.250%, 8/15/21 (Pre-refunded 8/15/11) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 94,435 Total Illinois 87,638,822 ------------------------------------------------------------------------------------------------------------------------------------ Indiana - 2.3% (1.4% of Total Investments) 3,730 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 AAA 3,726,718 Series 2007A, 5.000%, 1/01/42 - MBIA Insured 7,790 Indiana Transportation Finance Authority, Highway Revenue Bonds, No Opt. Call AAA 8,995,347 Series 1990A, 7.250%, 6/01/15 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 11,520 Total Indiana 12,722,065 ------------------------------------------------------------------------------------------------------------------------------------ Kansas - 0.6% (0.3% of Total Investments) 3,000 Wichita, Kansas, Water and Sewerage Utility Revenue Bonds, Series 10/13 at 100.00 A1 3,107,070 2003, 5.000%, 10/01/21 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ Kentucky - 6.1% (3.6% of Total Investments) 3,015 Kentucky Asset/Liability Commission, General Fund Revenue Project 5/15 at 100.00 AAA 3,077,441 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: 2,530 6.150%, 10/01/27 - MBIA Insured 10/13 at 101.00 AAA 2,785,707 12,060 6.150%, 10/01/28 - MBIA Insured 10/13 at 101.00 AAA 13,278,904 Kentucky Economic Development Finance Authority, Health System Revenue Bonds, Norton Healthcare Inc., Series 2000C: 3,815 6.150%, 10/01/27 (Pre-refunded 10/01/13) - MBIA Insured 10/13 at 101.00 AAA 4,419,410 6,125 6.150%, 10/01/28 (Pre-refunded 10/01/13) - MBIA Insured 10/13 at 101.00 AAA 7,095,384 2,230 Kentucky State Property and Buildings Commission, Revenue Bonds, 8/15 at 100.00 AAA 2,464,016 Project 85, Series 2005, 5.000%, 8/01/23 (Pre-refunded 8/01/15) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 29,775 Total Kentucky 33,120,862 ------------------------------------------------------------------------------------------------------------------------------------ Louisiana - 4.2% (2.5% of Total Investments) Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006: 825 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 815,768 10,500 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 10,382,505 2,040 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA- 1,932,716 6,900 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA- 6,537,129 5 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AA- 4,211 Residuals 660-3, 5.082%, 5/01/41 - FGIC Insured (IF) 10 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AA- 8,422 Residuals 660-1, 5.082%, 5/01/41 - FGIC Insured (IF)
----- 19 ----- NQI | Nuveen Insured Quality Municipal Fund, Inc. (continued) Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Louisiana (continued) $ 3,225 Orleans Levee District, Louisiana, Levee District General 6/08 at 102.00 AAA $ 3,267,183 Obligation Bonds, Series 1986, 5.950%, 11/01/15 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 23,505 Total Louisiana 22,947,934 ------------------------------------------------------------------------------------------------------------------------------------ Maine - 1.6% (0.9% of Total Investments) 555 Maine Health and Higher Educational Facilities Authority, Revenue 7/09 at 101.00 AAA 573,855 Bonds, Series 1999B, 6.000%, 7/01/29 - MBIA Insured 7,445 Maine Health and Higher Educational Facilities Authority, Revenue 7/09 at 101.00 AAA 7,848,817 Bonds, Series 1999B, 6.000%, 7/01/29 (Pre-refunded 7/01/09) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,000 Total Maine 8,422,672 ------------------------------------------------------------------------------------------------------------------------------------ Maryland - 1.8% (1.1% of Total Investments) 2,100 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 AAA 2,064,657 Revenue Bonds, Western Maryland Health, Series 2006A, 4.750%, 7/01/36 - MBIA Insured (UB) 7,535 Maryland Transportation Authority, Airport Parking Revenue Bonds, 3/12 at 101.00 AAA 7,720,813 Baltimore-Washington International Airport Passenger Facility, Series 2002B, 5.500%, 3/01/18 - AMBAC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 9,635 Total Maryland 9,785,470 ------------------------------------------------------------------------------------------------------------------------------------ Massachusetts - 2.3% (1.3% of Total Investments) 5,000 Massachusetts Bay Transportation Authority, Senior Sales Tax 7/12 at 100.00 AAA 5,404,250 Revenue Refunding Bonds, Series 2002A, 5.000%, 7/01/27 (Pre-refunded 7/01/12) - FGIC Insured 1,155 Massachusetts Water Resources Authority, General Revenue Bonds, 2/17 at 100.00 Aaa 909,978 Series 2007, Residual Trust 7039, 4.069%, 8/01/46 - FSA Insured (IF) Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, Series 2004: 1,250 5.250%, 1/01/21 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 1,363,900 1,000 5.250%, 1/01/22 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 1,091,120 1,195 5.250%, 1/01/23 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 1,303,888 2,000 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 2,182,240 ------------------------------------------------------------------------------------------------------------------------------------ 11,600 Total Massachusetts 12,255,376 ------------------------------------------------------------------------------------------------------------------------------------ Michigan - 0.9% (0.5% of Total Investments) 4,750 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 4,773,988 Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 1999A, 5.550%, 9/01/29 - MBIA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ Minnesota - 0.0% (0.0% of Total Investments) 12 St. Louis Park, Minnesota, GNMA Mortgage-Backed Securities Program 10/08 at 100.00 Aaa 12,217 Single Family Residential Mortgage Revenue Bonds, Series 1991A, 7.250%, 4/20/23 ------------------------------------------------------------------------------------------------------------------------------------ Mississippi - 1.2% (0.7% of Total Investments) 2,715 Harrison County Wastewater Management District, Mississippi, No Opt. Call Baa3 (4) 3,353,079 Revenue Refunding Bonds, Wastewater Treatment Facilities, Series 1991B, 7.750%, 2/01/14 - FGIC Insured (ETM) 2,545 Harrison County Wastewater Management District, Mississippi, No Opt. Call Baa3 (4) 3,147,172 Wastewater Treatment Facilities Revenue Refunding Bonds, Series 1991A, 8.500%, 2/01/13 - FGIC Insured (ETM) ------------------------------------------------------------------------------------------------------------------------------------ 5,260 Total Mississippi 6,500,251 ------------------------------------------------------------------------------------------------------------------------------------
----- 20 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Nebraska - 1.1% (0.6% of Total Investments) $ 6,505 Lincoln Electric System, Nebraska, Electric System Revenue Bonds, 9/17 at 100.00 AA $ 5,873,885 Series 2007A, Residuals 07-1007-9, 3.465%, 9/01/37 - FGIC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ Nevada - 6.1% (3.6% of Total Investments) 33,700 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 26,926,299 Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000, 5.375%, 1/01/40 - AMBAC Insured 5,720 Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, Reno 6/12 at 100.00 AAA 6,197,048 Transportation Rail Access Corridor Project, Series 2002, 5.125%, 6/01/32 (Pre-refunded 6/01/12) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 39,420 Total Nevada 33,123,347 ------------------------------------------------------------------------------------------------------------------------------------ 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 1,766,589 1,700 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 1,760,996 2,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 5.000%, 7/13 at 100.00 A 2,573,775 1/01/19 - FGIC Insured ----------------------------------------------------------------------------------------------------------------------------------- 5,900 Total New Jersey 6,101,360 ----------------------------------------------------------------------------------------------------------------------------------- New Mexico - 1.2% (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 1,476,530 3,290 5.000%, 6/01/23 - AMBAC Insured 6/14 at 100.00 AAA 3,396,037 1,530 New Mexico State University, Revenue Bonds, Series 2004, 5.000%, 4/14 at 100.00 AAA 1,578,134 4/01/23 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,240 Total New Mexico 6,450,701 ------------------------------------------------------------------------------------------------------------------------------------ New York - 16.1% (9.6% of Total Investments) 11,760 Dormitory Authority of the State of New York, New York City, Lease 5/10 at 101.00 AAA 12,671,870 Revenue Bonds, Court Facilities, Series 1999, 5.750%, 5/15/30 (Pre-refunded 5/15/10) - AMBAC Insured 15,000 Dormitory Authority of the State of New York, Revenue Bonds, School 10/12 at 100.00 AAA 16,120,800 Districts Financing Program, Series 2002D, 5.500%, 10/01/17 - MBIA Insured 4,070 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 3,796,944 Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB) 3,300 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 AAA 3,051,015 Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA Insured (UB) 5,000 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 A- 5,086,250 Revenue Bonds, Series 2006A, 5.000%, 12/01/25 - FGIC Insured 8,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AA- 8,162,240 Contract Refunding Bonds, Series 2002A, 5.000%, 7/01/25 - FGIC Insured 6,945 New York Convention Center Development Corporation, Hotel Unit Fee 11/15 at 100.00 AAA 6,951,737 Revenue Bonds, Series 2005, 5.000%, 11/15/44 - AMBAC Insured (UB) 10,150 New York State Housing Finance Agency, Mortgage Revenue Refunding 5/08 at 100.00 AAA 10,169,387 Bonds, Housing Project, Series 1996A, 6.125%, 11/01/20 - FSA Insured 4,200 New York State Mortgage Agency, Homeowner Mortgage Revenue Bonds, 10/09 at 100.00 AAA 4,232,466 Series 82, 5.550%, 10/01/19 - MBIA Insured (Alternative Minimum Tax) 6,595 New York State Thruway Authority, State Personal Income Tax Revenue 3/15 at 100.00 AAA 6,851,018 Bonds, Series 2005A, 5.000%, 3/15/25 - FSA Insured
----- 21 ----- NQI | Nuveen Insured Quality Municipal Fund, Inc. (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ New York (continued) New York State Urban Development Corporation, Service Contract Revenue Bonds, Series 2005B: $ 2,460 5.000%, 3/15/24 - FSA Insured 3/15 at 100.00 AAA $ 2,562,926 2,465 5.000%, 3/15/25 - FSA Insured 3/15 at 100.00 AAA 2,560,691 5,000 Triborough Bridge and Tunnel Authority, New York, Subordinate Lien 11/13 at 100.00 Aa3 5,011,850 General Purpose Revenue Bonds, Series 2003A, 5.000%, 11/15/32 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 84,945 Total New York 87,229,194 ------------------------------------------------------------------------------------------------------------------------------------ Ohio - 4.4% (2.6% of Total Investments) 7,000 Cleveland State University, Ohio, General Receipts Bonds, Series 6/14 at 100.00 A 7,410,130 2004, 5.250%, 6/01/19 - FGIC Insured 9,200 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series 2006, 12/16 at 100.00 Aaa 8,311,556 4.250%, 12/01/32 - AMBAC Insured (UB) 5,000 Lorain County, Ohio, Health Facilities Revenue Bonds, Catholic 9/09 at 102.00 AAA 5,199,850 Healthcare Partners, Series 1999A, 5.500%, 9/01/29 - AMBAC Insured 3,065 Oak Hills Local School District, Hamilton County, Ohio, General 12/15 at 100.00 AAA 3,196,458 Obligation Bonds, Series 2005, 5.000%, 12/01/24 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 24,265 Total Ohio 24,117,994 ------------------------------------------------------------------------------------------------------------------------------------ Oklahoma - 0.4% (0.3% of Total Investments) 2,250 Oklahoma Capitol Improvement Authority, State Facilities Revenue 7/15 at 100.00 AAA 2,311,200 Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ Pennsylvania - 2.8% (1.7% of Total Investments) 3,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage Revenue 12/15 at 100.00 AAA 3,081,810 Bonds, Series 2005A, 5.000%, 12/01/23 - MBIA Insured Delaware County Authority, Pennsylvania, Revenue Bonds, Villanova University, Series 2006: 3,260 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 3,355,257 1,600 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 1,639,008 5,400 Pennsylvania Public School Building Authority, Lease Revenue Bonds, 12/16 at 100.00 AAA 5,260,356 School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 - FSA Insured (UB) 2,000 Pittsburgh Public Parking Authority, Pennsylvania, Parking Revenue 12/15 at 100.00 Baa3 2,022,560 Bonds, Series 2005B, 5.000%, 12/01/23 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 15,260 Total Pennsylvania 15,358,991 ------------------------------------------------------------------------------------------------------------------------------------ Puerto Rico - 2.0% (1.2% of Total Investments) 2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/15 at 100.00 A3 2,482,275 2005RR, 5.000%, 7/01/22 - FGIC Insured 25,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call A+ 3,361,000 Bonds, Series 2007A, 0.000%, 8/01/42 - FGIC Insured 5,000 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call A- 5,209,850 Authority, Series 2003AA, 5.500%, 7/01/16 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 32,500 Total Puerto Rico 11,053,125 ------------------------------------------------------------------------------------------------------------------------------------ South Carolina - 2.3% (1.4% of Total Investments) 3,000 Charleston County School District, South Carolina, General 2/14 at 100.00 AAA 3,113,580 Obligation Bonds, Series 2004A, 5.000%, 2/01/22 - AMBAC Insured 10,000 South Carolina Transportation Infrastructure Bank, Revenue Bonds, 10/16 at 100.00 A1 9,284,700 Series 2007A, 4.500%, 10/01/34 - XLCA Insured ------------------------------------------------------------------------------------------------------------------------------------ 13,000 Total South Carolina 12,398,280 ------------------------------------------------------------------------------------------------------------------------------------
----- 22 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Tennessee - 1.1% (0.7% of Total Investments) Knox County Health, Educational and Housing Facilities Board, Tennessee, Hospital Revenue Refunding Bonds, Covenant Health, Series 2002A: $ 7,500 0.000%, 1/01/24 - FSA Insured 1/13 at 52.75 AAA $ 3,120,075 5,000 0.000%, 1/01/25 - FSA Insured 1/13 at 49.71 AAA 1,954,050 2,750 0.000%, 1/01/26 - FSA Insured 1/13 at 46.78 AAA 1,007,683 ------------------------------------------------------------------------------------------------------------------------------------ 15,250 Total Tennessee 6,081,808 ------------------------------------------------------------------------------------------------------------------------------------ Texas - 18.4% (10.9% of Total Investments) 8,000 Abilene Health Facilities Development Corporation, Texas, Hospital 9/08 at 100.00 AAA 8,005,920 Revenue Refunding and Improvement Bonds, Hendrick Medical Center Project, Series 1995C, 6.150%, 9/01/25 - MBIA Insured 1,595 Austin, Texas, Combined Utility System Revenue Refunding Bonds, 5/08 at 100.00 AAA 1,597,201 Series 1997, 5.125%, 11/15/20 - FSA Insured 3,135 Corpus Christi, Texas, Utility System Revenue Bonds, Series 2004, 7/14 at 100.00 AAA 3,371,379 5.250%, 7/15/20 - FSA Insured 3,000 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 A+ 3,102,810 Refunding and Improvement Bonds, Series 2001A, 5.750%, 11/01/13 - FGIC Insured (Alternative Minimum Tax) 3,735 Grand Prairie Independent School District, Dallas County, Texas, 2/13 at 100.00 AAA 4,081,048 General Obligation Bonds, Series 2003, 5.125%, 2/15/31 (Pre-refunded 2/15/13) - FSA Insured 1,035 Harris County Hospital District, Texas, Revenue Refunding Bonds, No Opt. Call AAA 1,092,598 Series 1990, 7.400%, 2/15/10 - AMBAC Insured 285 Harris County Hospital District, Texas, Revenue Refunding Bonds, No Opt. Call AAA 298,660 Series 1990, 7.400%, 2/15/10 - AMBAC Insured (ETM) 5,000 Houston, Texas, First Lien Combined Utility System Revenue Bonds, 5/14 at 100.00 AA 5,103,550 Series 2004A, 5.250%, 5/15/24 - FGIC Insured 4,500 Houston, Texas, General Obligation Public Improvement Bonds, Series 3/11 at 100.00 AAA 4,644,900 2001A, 5.000%, 3/01/22 - FSA Insured 17,000 Houston, Texas, Junior Lien Water and Sewerage System Revenue No Opt. Call AAA 19,818,429 Refunding Bonds, Series 2002A, 5.750%, 12/01/32 - FSA Insured (ETM) 4,685 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/10 at 100.00 AAA 4,812,666 Series 2000A, 5.500%, 7/01/19 - FSA Insured (Alternative Minimum Tax) 19,200 Jefferson County Health Facilities Development Corporation, Texas, 8/11 at 100.00 AAA 19,568,832 FHA-Insured Mortgage Revenue Bonds, Baptist Hospital of Southeast Texas, Series 2001, 5.400%, 8/15/31 - AMBAC Insured 2,000 Laredo Independent School District Public Facilities Corporation, 8/11 at 100.00 AAA 2,019,560 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 22,327,395 Revenue Bonds, Children's Medical Center of Dallas, Series 2002, 5.250%, 8/15/32 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 95,215 Total Texas 99,844,948 ------------------------------------------------------------------------------------------------------------------------------------ Washington - 13.3% (7.9% of Total Investments) 10,730 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 10,808,222 Consolidated System Revenue Refunding Bonds, Series 2001C, 5.650%, 7/01/32 - MBIA Insured (Alternative Minimum Tax) 15,025 Seattle Housing Authority, Washington, GNMA Collateralized Mortgage 11/11 at 105.00 AAA 16,169,154 Loan Low Income Housing Assistance Revenue Bonds, Park Place Project, Series 2000A, 7.000%, 5/20/42 4,550 Seattle Housing Authority, Washington, GNMA Collateralized Mortgage 9/11 at 102.00 AAA 4,767,035 Loan Low Income Housing Assistance Revenue Bonds, RHF/Esperanza Apartments Project, Series 2000A, 6.125%, 3/20/42 (Alternative Minimum Tax)
----- 23 ----- NQI | Nuveen Insured Quality Municipal Fund, Inc. (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Washington (continued) $ 5,000 Seattle, Washington, Municipal Light and Power Revenue Bonds, Series 12/10 at 100.00 AAA $ 5,225,100 2000, 5.250%, 12/01/21 - FSA Insured 11,750 Washington Public Power Supply System, Revenue Refunding Bonds, 7/08 at 102.00 AAA 12,027,418 Nuclear Project 1, Series 1998A, 5.125%, 7/01/17 - MBIA Insured 2,500 Washington State Healthcare Facilities Authority, Revenue Bonds, 12/09 at 101.00 AAA 2,643,037 Providence Services, Series 1999, 5.375%, 12/01/19 (Pre-refunded 12/01/09) - MBIA Insured 21,510 Washington State, Motor Vehicle Fuel Tax General Obligation Bonds, No Opt. Call AA+ 7,640,567 Series 2002-03C, 0.000%, 6/01/28 - MBIA Insured (UB) 10,000 Washington State, General Obligation Bonds, Series R-2003A, 5.000%, 1/12 at 100.00 AAA 10,394,700 1/01/19 - MBIA Insured 2,250 Washington, Certificates of Participation, Washington Convention and 7/09 at 100.00 AAA 2,304,788 Trade Center, Series 1999, 5.250%, 7/01/14 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 83,315 Total Washington 71,980,021 ------------------------------------------------------------------------------------------------------------------------------------ West Virginia - 2.5% (1.5% of Total Investments) 12,845 West Virginia Water Development Authority, Infrastructure Revenue 10/10 at 100.00 AAA 13,751,729 Bonds, Infrastructure and Jobs Development Council Program, Series 2000A, 5.500%, 10/01/39 (Pre-refunded 10/01/10) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ Wisconsin - 0.7% (0.4% of Total Investments) 1,635 Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 11/14 at 100.00 Aaa 1,802,310 5.000%, 11/01/26 (Pre-refunded 11/01/14) - FSA Insured 545 Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 11/14 at 100.00 Aaa 562,075 5.000%, 11/01/26 - FSA Insured 1,675 Wisconsin Public Power Incorporated System, Power Supply System 7/15 at 100.00 AAA 1,684,916 Revenue Bonds, Series 2005A, 5.000%, 7/01/30 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 3,855 Total Wisconsin 4,049,301 ------------------------------------------------------------------------------------------------------------------------------------ 1,041,365 Total Long-Term Investments (cost $896,475,390) - 166.9% 906,804,801 ------------------------------------------------------------------------------------------------------------------------------------
----- 24 -----
Principal Amount (000) Description (1) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Short-Term Investments - 1.2% (0.7% of Total Investments) $ 4,420 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, ROCS 660, VMIG-1 $ 4,420,000 Variable Rate Demand Obligations, 4.010%, 5/01/34 - FGIC Insured (5) 1,900 Massachusetts Turnpike Authority, Metropolitan Highway System A-1+ 1,900,000 Revenue Bonds, Senior Series 1997A, Trust 489, Variable Rate Demand Obligations, 6.000%, 1/01/37 - MBIA Insured (5) ------------------------------------------------------------------------------------------------------------------------------------ $ 6,320 Total Short-Term Investments (cost $6,320,000) 6,320,000 ============------------------------------------------------------------------------------------------------------------------------ Total Investments (cost $902,795,390) - 168.1% 913,124,801 --------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (12.4)% (67,386,650) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.8% 15,496,623 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (58.5)% (6) (318,000,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 543,234,774 =====================================================================================================================
As of April 30, 2008, all of the bonds in the Portfolio of Investments, excluding temporary investments in short-term municipal securities, are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments may reflect the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Investment has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. The rate disclosed is that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. (6) Preferred Shares, at Liquidation Value as a percentage of total investments is (34.8)%. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. ----- 25 ----- NIO | Nuveen Insured Municipal Opportunity Fund, Inc. | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Alabama - 11.1% (6.8% of Total Investments) $ 10,500 Birmingham Waterworks and Sewerage Board, Alabama, Water and 1/17 at 100.00 AAA $ 9,674,700 Sewerage Revenue Bonds, Series 2007A, 4.500%, 1/01/43 - AMBAC Insured (UB) 11,175 Hoover Board of Education, Alabama, Capital Outlay Tax Anticipation 2/11 at 100.00 AAA 11,560,772 Warrants, Series 2001, 5.250%, 2/15/22 - MBIA Insured Jefferson County, Alabama, Sewer Revenue Capital Improvement Warrants, Series 1999A: 10,815 5.000%, 2/01/33 (Pre-refunded 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 11,150,373 9,790 5.000%, 2/01/33 (Pre-refunded 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 10,093,588 29,860 5.750%, 2/01/38 (Pre-refunded 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 30,952,279 2,500 Jefferson County, Alabama, Sewer Revenue Capital Improvement 8/12 at 100.00 AAA 2,718,325 Warrants, Series 2002B, 5.125%, 2/01/42 (Pre-refunded 8/01/12) - FGIC Insured Jefferson County, Alabama, Sewer Revenue Capital Improvement Warrants, Series 2002D: 425 5.000%, 2/01/38 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 459,123 14,800 5.000%, 2/01/42 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 16,019,076 18,760 Jefferson County, Alabama, Sewer Revenue Capitol Improvement 2/11 at 101.00 AAA 20,074,888 Warrants, Series 2001A, 5.000%, 2/01/41 (Pre-refunded 2/01/11) - FGIC Insured 10,195 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, Series 7/08 at 100.00 BB 6,638,984 1997A, 5.375%, 2/01/27 - FGIC Insured 5,240 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, Series 2/11 at 101.00 AAA 5,615,970 2003B, 5.000%, 2/01/41 (Pre-refunded 2/01/11) - FGIC Insured 6,000 University of Alabama, Tuscaloosa, General Revenue Bonds, Series 7/14 at 100.00 AAA 6,130,500 2004A, 5.000%, 7/01/29 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 130,060 Total Alabama 131,088,578 ------------------------------------------------------------------------------------------------------------------------------------ Alaska - 1.5% (0.9% of Total Investments) 2,745 Alaska Housing Finance Corporation, Collateralized Veterans 12/09 at 100.00 AAA 2,778,489 Mortgage Program Bonds, First Series 1999A-1, 6.150%, 6/01/39 11,245 Alaska Housing Finance Corporation, General Mortgage Revenue Bonds, 6/09 at 100.00 AAA 11,326,639 Series 1999A, 6.050%, 6/01/39 - MBIA Insured 3,000 Alaska Student Loan Corporation, Student Loan Revenue Bonds, Series 7/08 at 100.00 AAA 3,014,250 1998A, 5.250%, 7/01/14 (Pre-refunded 7/01/08) - AMBAC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 16,990 Total Alaska 17,119,378 ------------------------------------------------------------------------------------------------------------------------------------ Arizona - 2.5% (1.5% 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 2,049,880 2,000 5.000%, 9/01/27 - AMBAC Insured 3/15 at 100.00 AAA 2,042,820 1,000 Arizona State University, System Revenue Bonds, Series 2005, 7/15 at 100.00 AAA 1,008,320 5.000%, 7/01/27 - AMBAC Insured
----- 26 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Arizona (continued) $ 1,000 Maricopa County Union High School District 210, Phoenix, Arizona, 7/14 at 100.00 AAA $ 1,100,300 General Obligation Bonds, Series 2004A, 5.000%, 7/01/22 (Pre-refunded 7/01/14) - FSA Insured 6,940 Mesa, Arizona, Utility System Revenue Bonds, Reset Option Longs, 7/17 at 100.00 Aaa 5,452,827 Series 11032-11034, 7.449%, 7/01/31 - FSA Insured (IF) 1,150 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/14 at 100.00 AAA 1,181,234 Wastewater System Revenue Bonds, Series 2004, 5.000%, 7/01/27 - MBIA Insured 13,490 Phoenix Civic Improvement Corporation, Arizona, Junior Lien Water 7/15 at 100.00 AAA 13,751,841 System Revenue Bonds, Series 2005, 4.750%, 7/01/25 - MBIA Insured 2,905 Pima County Industrial Development Authority, Arizona, Lease 7/08 at 100.00 Aaa 2,996,653 Obligation Revenue Refunding Bonds, Tucson Electric Power Company, Series 1988A, 7.250%, 7/15/10 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 30,485 Total Arizona 29,583,875 ------------------------------------------------------------------------------------------------------------------------------------ Arkansas - 0.5% (0.3% of Total Investments) 3,660 Arkansas State University, Student Fee Revenue Bonds, Beebe Campus, 9/15 at 100.00 Aaa 3,664,209 Series 2006, 5.000%, 9/01/35 - AMBAC Insured 2,000 Pulaski County, Arkansas, Hospital Revenue Bonds, Arkansas 3/15 at 100.00 AAA 2,018,300 Children's Hospital, Series 2005, 5.000%, 3/01/25 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,660 Total Arkansas 5,682,509 ------------------------------------------------------------------------------------------------------------------------------------ California - 32.9% (20.2% of Total Investments) 5,600 Alameda Corridor Transportation Authority, California, Subordinate No Opt. Call AAA 3,021,648 Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/20 - AMBAC Insured 10,000 California Department of Veterans Affairs, Home Purchase Revenue 6/12 at 101.00 AAA 10,525,400 Bonds, Series 2002A, 5.300%, 12/01/21 - AMBAC Insured California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A: 30,000 5.375%, 5/01/17 (Pre-refunded 5/01/12) - XLCA Insured 5/12 at 101.00 Aaa 33,111,898 25,000 5.375%, 5/01/18 (Pre-refunded 5/01/12) - AMBAC Insured 5/12 at 101.00 AAA 27,593,250 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 3,829,870 2,820 5.000%, 12/01/27 - MBIA Insured 12/14 at 100.00 AAA 2,894,645 18,000 California Infrastructure Economic Development Bank, First Lien 1/28 at 100.00 AAA 19,226,520 Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A, 5.000%, 7/01/33 (Pre-refunded 1/01/28) - AMBAC Insured (UB) 4,500 California, General Obligation Bonds, Series 1998, 5.000%, 10/01/19 - 10/08 at 101.00 A+ 4,569,435 FGIC Insured 10,150 California, General Obligation Bonds, Series 2004, 5.000%, 6/01/31 - 12/14 at 100.00 AAA 10,297,378 AMBAC Insured 3,500 Coachella Valley Unified School District, Riverside County, 8/15 at 100.00 A- 3,516,625 California, General Obligation Bonds, Series 2005A, 5.000%, 8/01/26 - FGIC Insured 20,000 Cucamonga County Water District, San Bernardino County, California, 9/11 at 101.00 A+ 20,071,800 Certificates of Participation, Water Shares Purchase, Series 2000, 5.125%, 9/01/35 - FGIC Insured 5,750 East Bay Municipal Utility District, Alameda and Contra Costa 6/15 at 100.00 AAA 5,933,138 Counties, California, Water System Subordinated Revenue Bonds, Series 2005A, 5.000%, 6/01/27 - MBIA Insured 10,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A 9,579,800 Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/38 - FGIC Insured (UB) 1,520 Hayward Redevelopment Agency, California, Downtown Redevelopment 3/16 at 100.00 A- 1,508,600 Project Tax Allocation Bonds, Series 2006, 5.000%, 3/01/36 - XLCA Insured
----- 27 ----- NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ California (continued) $ 4,000 Kern Community College District, California, General Obligation 11/15 at 100.00 AAA $ 4,241,080 Bonds, Series 2005, 5.000%, 11/01/20 - FSA Insured 5,600 Kern Community College District, California, General Obligation No Opt. Call AAA 2,448,656 Bonds, Series 2006, 0.000%, 11/01/24 - FSA Insured 5,000 Long Beach Bond Financing Authority, California, Lease Revenue 11/11 at 101.00 AAA 5,043,800 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, Series 8/16 at 102.00 AA 2,725,971 2006A, 5.000%, 8/01/22 - FGIC Insured (Alternative Minimum Tax) 20,000 Los Angeles Unified School District, California, General Obligation 7/13 at 100.00 AAA 20,845,800 Bonds, Series 2003A, 5.000%, 7/01/21 - FSA Insured 2,000 Los Angeles Unified School District, California, General Obligation 7/15 at 100.00 AAA 2,089,240 Bonds, Series 2005A-2, 5.000%, 7/01/23 - MBIA Insured 3,000 Los Angeles Unified School District, California, General Obligation 7/16 at 100.00 AA- 3,132,690 Bonds, Series 2006F, 5.000%, 7/01/24 - FGIC Insured 6,205 Port of Oakland, California, Revenue Bonds, Series 2002L, 5.000%, 11/12 at 100.00 A+ 5,993,906 11/01/22 - FGIC Insured (Alternative Minimum Tax) Poway Redevelopment Agency, California, Tax Allocation Bonds, Paguay Redevelopment Project, Series 2001: 15,000 5.200%, 6/15/30 - AMBAC Insured 12/11 at 101.00 AAA 15,102,000 5,000 5.125%, 6/15/33 - AMBAC Insured 12/11 at 101.00 AAA 5,013,950 2,035 Redding, California, Electric System Revenue Certificates of 6/15 at 100.00 Baa3 1,956,001 Participation, Series 2005, 5.000%, 6/01/30 - FGIC Insured 6,000 Redlands Unified School District, San Bernardino County, California, 7/13 at 100.00 AAA 6,150,540 General Obligation Bonds, Series 2003, 5.000%, 7/01/26 - FSA Insured 2,970 Riverside Community College District, California, General 8/15 at 100.00 AAA 3,107,600 Obligation Bonds, Series 2005, 5.000%, 8/01/22 - FSA Insured 2,500 Sacramento County Sanitation District Financing Authority, 12/15 at 100.00 AA 2,590,100 California, Revenue Bonds, Series 2005B, 4.750%, 12/01/21 - FGIC Insured 13,710 San Francisco Airports Commission, California, Revenue Refunding 5/11 at 100.00 AAA 13,732,622 Bonds, San Francisco International Airport, Second Series 2001, Issue 27A, 5.250%, 5/01/26 - MBIA Insured (Alternative Minimum Tax) 3,030 San Francisco Bay Area Rapid Transit District, California, Sales 7/11 at 100.00 AAA 3,069,087 Tax Revenue Bonds, Series 2001, 5.125%, 7/01/36 - AMBAC Insured 8,470 San Francisco Bay Area Rapid Transit District, California, Sales 7/11 at 100.00 AAA 9,109,654 Tax Revenue Bonds, Series 2001, 5.125%, 7/01/36 (Pre-refunded 7/01/11) - AMBAC Insured San Francisco Bay Area Rapid Transit District, California, Sales Tax Revenue Bonds, Series 2005A: 1,220 5.000%, 7/01/22 - MBIA Insured 7/15 at 100.00 AAA 1,275,974 1,280 5.000%, 7/01/23 - MBIA Insured 7/15 at 100.00 AAA 1,337,114 66,685 San Joaquin Hills Transportation Corridor Agency, Orange County, No Opt. Call AAA 37,899,081 California, Senior Lien Toll Road Revenue Bonds, Series 1993, 0.000%, 1/01/21 (ETM) 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 7/08 at 101.00 AAA 31,277,350 21,500 0.000%, 1/15/32 - MBIA Insured No Opt. Call AAA 5,196,980
----- 28 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ California (continued) $ 12,525 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/10 at 101.00 AAA $ 13,362,046 Merged Area Redevelopment Project, Series 2002, 5.000%, 8/01/20 (Pre-refunded 8/01/10) - MBIA Insured 19,595 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/17 at 100.00 AAA 18,029,360 Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30 - MBIA Insured (UB) 11,000 Santa Ana Financing Authority, California, Lease Revenue Bonds, No Opt. Call AAA 12,812,690 Police Administration and Housing Facility, Series 1994A, 6.250%, 7/01/24 - MBIA Insured 5,000 Walnut Energy Center Authority, California, Electric Revenue Bonds, 1/14 at 100.00 AAA 5,021,700 Turlock Irrigation District, Series 2004A, 5.000%, 1/01/34 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 428,220 Total California 388,244,999 ------------------------------------------------------------------------------------------------------------------------------------ Colorado - 6.8% (4.2% of Total Investments) 1,080 Arkansas River Power Authority, Colorado, Power Revenue Bonds, 10/16 at 100.00 A- 1,048,529 Series 2006, 5.250%, 10/01/40 - XLCA Insured 1,900 Aspen, Colorado, Sales Tax Revenue Bonds, Parks and Open Space, 11/15 at 100.00 AAA 2,002,258 Series 2005B, 5.250%, 11/01/24 - FSA Insured 1,000 Colorado Department of Transportation, Certificates of 6/14 at 100.00 AAA 1,031,320 Participation, Series 2004, 5.000%, 6/15/25 - MBIA Insured 4,950 Denver Convention Center Hotel Authority, Colorado, Senior Revenue 12/13 at 100.00 A3(4) 5,362,038 Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/33 (Pre-refunded 12/01/13) - XLCA Insured 1,740 Douglas County School District RE1, Douglas and Elbert Counties, 12/14 at 100.00 Aaa 1,785,257 Colorado, General Obligation Bonds, Series 2005B, 5.000%, 12/15/28 - FSA Insured 35,995 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AAA 15,499,807 Series 1997B, 0.000%, 9/01/23 - MBIA Insured 30,800 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 102.00 AAA 33,555,058 Series 2000A, 5.750%, 9/01/35 (Pre-refunded 9/01/10) - MBIA Insured 11,800 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 74.80 AAA 8,291,860 Series 2000B, 0.000%, 9/01/15 (Pre-refunded 9/01/10) - MBIA Insured 10,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call AAA 3,310,300 Series 2004A, 0.000%, 9/01/27 - MBIA Insured 4,520 Jefferson County School District R1, Colorado, General Obligation 12/14 at 100.00 AAA 4,674,177 Bonds, Series 2004, 5.000%, 12/15/24 - FSA Insured 2,500 Summit County School District RE-1, Summit, Colorado, General 12/14 at 100.00 Aa3 2,600,800 Obligation Bonds, Series 2004B, 5.000%, 12/01/24 - FGIC Insured 1,000 University of Colorado, Enterprise System Revenue Bonds, Series 6/15 at 100.00 AA- 1,002,910 2005, 5.000%, 6/01/30 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 107,285 Total Colorado 80,164,314 ------------------------------------------------------------------------------------------------------------------------------------ District of Columbia - 1.1% (0.6% of Total Investments) District of Columbia Water and Sewerage Authority, Subordinate Lien Public Utility Revenue Bonds, Series 2003: 5,000 5.125%, 10/01/24 - FGIC Insured 10/13 at 100.00 AA- 5,141,350 5,000 5.125%, 10/01/25 - FGIC Insured 10/13 at 100.00 AA- 5,124,450 2,670 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 2,205,634 Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals 1606, 8.033%, 10/01/30 - AMBAC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ 12,670 Total District of Columbia 12,471,434 ------------------------------------------------------------------------------------------------------------------------------------
----- 29 ----- NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Florida - 6.4% (3.9% of Total Investments) $ 1,000 Hillsborough County School Board, Florida, Certificates of 7/15 at 100.00 AAA $ 1,016,800 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 670,594 1,830 5.000%, 5/01/27 - MBIA Insured 5/15 at 102.00 Aaa 1,886,181 4,425 Jacksonville Economic Development Commission, Florida, Healthcare 11/12 at 100.00 AAA 4,588,460 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 1,561,784 Series 2004B, 5.000%, 10/01/21 - AMBAC Insured 2,000 Marco Island, Florida, Water Utility System Revenue Bonds, Series 10/13 at 100.00 AAA 2,024,520 2003, 5.000%, 10/01/27 - MBIA Insured 2,150 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA 2,071,762 International Airport, Series 2002A, 5.125%, 10/01/35 - FSA Insured (Alternative Minimum Tax) 35,920 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 A2 35,271,642 International Airport, Series 2002, 5.375%, 10/01/32 - FGIC Insured (Alternative Minimum Tax) 12,930 Miami-Dade County, Florida, Public Facilities Revenue Bonds, 12/15 at 100.00 AAA 12,967,626 Jackson Health System, Series 2005A, 5.000%, 6/01/32 - MBIA Insured 5,320 Miami-Dade County, Florida, Public Facilities Revenue Bonds, 6/15 at 100.00 AAA 5,379,850 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 1,356,242 2,145 5.000%, 8/01/29 - MBIA Insured 8/15 at 102.00 AAA 2,197,531 2,320 Osceola County, Florida, Transportation Revenue Bonds, Osceola 4/14 at 100.00 Aaa 2,357,909 Parkway, Series 2004, 5.000%, 4/01/23 - MBIA Insured 2,225 Plantation, Florida, Non-Ad Valorem Revenue Refunding and 8/13 at 100.00 Aaa 2,347,954 Improvement Bonds, Series 2003, 5.000%, 8/15/18 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 75,705 Total Florida 75,698,855 ------------------------------------------------------------------------------------------------------------------------------------ Georgia - 1.0% (0.6% of Total Investments) 1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/14 at 100.00 AAA 1,039,340 2004, 5.000%, 11/01/22 - FSA Insured 1,520 College Park Business and Industrial Development Authority, 9/14 at 102.00 AAA 1,616,885 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 1,825,532 1,135 5.250%, 5/01/20 - MBIA Insured 5/14 at 100.00 AAA 1,215,176 4,500 5.000%, 5/01/36 - MBIA Insured 5/14 at 100.00 AAA 4,574,610 1,250 Glynn-Brunswick Memorial Hospital Authority, Georgia, Revenue 8/08 at 100.00 AAA 1,257,313 Bonds, Southeast Georgia Health Systems, Series 1996, 5.250%, 8/01/13 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 11,100 Total Georgia 11,528,856 ------------------------------------------------------------------------------------------------------------------------------------
----- 30 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Idaho - 0.3% (0.2% of Total Investments) $ 305 Idaho Housing Agency, Single Family Mortgage Senior Bonds, Series No Opt. Call Aa1 $ 316,255 1994B-1, 6.750%, 7/01/22 265 Idaho Housing Agency, Single Family Mortgage Senior Bonds, Series No Opt. Call Aa1 274,938 1994B-2, 6.900%, 7/01/26 (Alternative Minimum Tax) 340 Idaho Housing Agency, Single Family Mortgage Senior Bonds, Series 7/08 at 100.00 Aaa 350,815 1995B, 6.600%, 7/01/27 (Alternative Minimum Tax) Idaho Housing and Finance Association, Grant and Revenue Anticipation Bonds, Federal Highway Trust Funds, Series 2006: 1,000 5.000%, 7/15/23 - MBIA Insured 7/16 at 100.00 Aaa 1,045,100 1,065 5.000%, 7/15/24 - MBIA Insured 7/16 at 100.00 Aaa 1,107,813 ------------------------------------------------------------------------------------------------------------------------------------ 2,975 Total Idaho 3,094,921 ------------------------------------------------------------------------------------------------------------------------------------ Illinois - 6.2% (3.8% of Total Investments) 1,050 Bedford Park, Illinois, General Obligation Bonds, Series 2004A, 12/14 at 100.00 AAA 1,133,412 5.250%, 12/15/20 - FSA Insured Chicago, Illinois, Second Lien Passenger Facility Charge Revenue Refunding Bonds, O'Hare International Airport, Series 2001E: 4,615 5.500%, 1/01/17 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,697,332 4,870 5.500%, 1/01/18 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,937,303 7,200 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 7,386,768 O'Hare International Airport, Series 2005A, 5.250%, 1/01/24 - MBIA Insured 10,000 Illinois Development Finance Authority, Revenue Bonds, Provena 5/08 at 101.00 AAA 10,113,600 Health, Series 1998A, 5.500%, 5/15/21 - MBIA Insured 2,095 Illinois Educational Facilities Authority, Revenue Bonds, Robert 6/08 at 100.00 Aaa 2,098,247 Morris College, Series 2000, 5.800%, 6/01/30 - MBIA Insured 4,500 Illinois Health Facilities Authority, Revenue Bonds, Alexian 1/09 at 101.00 AAA 4,630,410 Brothers Health System, Series 1999, 5.000%, 1/01/19 (Pre-refunded 1/01/09) - FSA Insured 7,000 Illinois Health Facilities Authority, Revenue Bonds, Hospital 6/08 at 101.00 Aaa 7,077,210 Sisters Services Inc. Obligated Group, Series 1998A, 5.000%, 6/01/18 - MBIA Insured 22,510 Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AA 22,997,116 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 AA+ 4,424,351 2,365 5.000%, 12/01/23 - FGIC Insured 12/14 at 100.00 AA+ 2,446,640 4,000 Southwestern Illinois Development Authority, School Revenue No Opt. Call AAA 1,638,440 Bonds, Triad School District 2, Madison County, Illinois, Series 2006, 0.000%, 10/01/25 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 74,465 Total Illinois 73,580,829 ------------------------------------------------------------------------------------------------------------------------------------ Indiana - 3.5% (2.2% of Total Investments) 2,030 Decatur Township-Marion County Multi-School Building Corporation, 7/13 at 100.00 AA(4) 2,218,587 Indiana, First Mortgage Bonds, Series 2003, 5.000%, 7/15/20 (Pre-refunded 7/15/13) - FGIC Insured 8,000 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 AAA 7,992,960 Series 2007A, 5.000%, 1/01/42 - MBIA Insured 20,000 Indianapolis Local Public Improvement Bond Bank, Indiana, Series No Opt. Call AAA 7,103,200 1999E, 0.000%, 2/01/28 - AMBAC Insured 3,250 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 3,544,450 Waterworks Project, Series 2002A, 5.250%, 7/01/33 (Pre-refunded 7/01/12) - MBIA Insured
----- 31 ----- NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Indiana (continued) $ 1,340 Monroe-Gregg Grade School Building Corporation, Morgan County, 1/14 at 100.00 AAA $ 1,466,550 Indiana, First Mortgage Bonds, Series 2004, 5.000%, 1/15/25 (Pre-refunded 1/15/14) - FSA Insured 5,000 Noblesville Redevelopment Authority, Indiana, Economic 7/13 at 100.00 AAA 5,042,950 Development Lease Rental Bonds, Exit 10 Project, Series 2003, 5.000%, 1/15/28 - AMBAC Insured 10,000 Purdue University, Indiana, Student Fee Bonds, Series 2002O, 1/12 at 100.00 AAA 10,384,300 5.000%, 7/01/19 - MBIA Insured 3,705 Whitley County Middle School Building Corporation, Columbia City, 7/13 at 100.00 Aaa 4,049,195 Indiana, First Mortgage Bonds, Series 2003, 5.000%, 7/15/16 (Pre-refunded 7/15/13) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 53,325 Total Indiana 41,802,192 ------------------------------------------------------------------------------------------------------------------------------------ Kansas - 1.2% (0.8% of Total Investments) 2,055 Kansas Turnpike Authority, Revenue Bonds, Series 2004A-2, 5.000%, 9/14 at 101.00 AAA 2,160,134 9/01/23 - FSA Insured Neosho County Unified School District 413, Kansas, General Obligation Bonds, Series 2006: 2,145 5.000%, 9/01/27 - FSA Insured 9/14 at 100.00 Aaa 2,214,176 4,835 5.000%, 9/01/29 - FSA Insured 9/14 at 100.00 Aaa 4,972,072 5,000 University of Kansas Hospital Authority, Health Facilities 9/09 at 100.00 AAA 5,226,250 Revenue Bonds, KU Health System, Series 1999A, 5.650%, 9/01/29 (Pre-refunded 9/01/09) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 14,035 Total Kansas 14,572,632 ------------------------------------------------------------------------------------------------------------------------------------ Kentucky - 2.1% (1.3% of Total Investments) 3,870 Kenton County School District Finance Corporation, Kentucky, 6/14 at 100.00 Aaa 4,062,610 School Building Revenue Bonds, Series 2004, 5.000%, 6/01/20 - MBIA Insured 7,500 Kentucky Turnpike Authority, Economic Development Road Revenue 7/16 at 100.00 AAA 7,779,525 Bonds, Revitalization Project, Series 2006B, 5.000%, 7/01/25 - AMBAC Insured 12,980 Louisville and Jefferson County Metropolitan Sewer District, 11/11 at 101.00 AAA 13,487,778 Kentucky, Sewer and Drainage System Revenue Bonds, Series 2001A, 5.500%, 5/15/34 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 24,350 Total Kentucky 25,329,913 ------------------------------------------------------------------------------------------------------------------------------------ Louisiana - 5.8% (3.6% of Total Investments) 5,000 DeSoto Parish, Louisiana, Pollution Control Revenue Refunding 9/09 at 102.00 AAA 5,216,000 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 3,190,740 Series 2004, 5.250%, 11/01/22 - MBIA Insured 5,140 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge 7/14 at 100.00 AAA 5,289,523 General Hospital, Series 2004, 5.250%, 7/01/24 - MBIA Insured Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2005A: 2,400 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AA- 2,445,408 4,415 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AA- 4,493,234 5,000 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AA- 5,079,700 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006: 3,300 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 3,263,073 8,135 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA- 7,707,180 27,590 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA- 26,139,042 38 Louisiana State, Gasoline Tax Revenue Bonds, Residuals 660-1, 5/16 at 100.00 AA- 32,285 5.082%, 5/01/41 - FGIC Insured (IF) 5,485 Orleans Levee District, Louisiana, Levee District General 6/08 at 102.00 AAA 5,556,744 Obligation Bonds, Series 1986, 5.950%, 11/01/15 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 69,528 Total Louisiana 68,412,929 ------------------------------------------------------------------------------------------------------------------------------------
----- 32 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Maine - 0.3% (0.2% of Total Investments) $ 3,000 Maine Health and Higher Educational Facilities Authority, Revenue 7/13 at 100.00 AAA $ 3,066,930 Bonds, Series 2003B, 5.000%, 7/01/28 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ Maryland - 0.4% (0.3% of Total Investments) 5,345 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 A- 5,075,665 Bonds, Series 2006A, 5.250%, 9/01/28 - XLCA Insured ------------------------------------------------------------------------------------------------------------------------------------ Massachusetts - 4.8% (2.9% of Total Investments) 22,500 Massachusetts Development Finance Authority, Revenue Bonds, WGBH 1/12 at 101.00 AAA 24,614,325 Educational Foundation, Series 2002A, 5.375%, 1/01/42 (Pre-refunded 1/01/12) - AMBAC Insured 11,000 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 11,469,920 Revenue Bonds, Series 2005A, 5.000%, 8/15/23 - FSA Insured (UB) 2,420 Massachusetts Water Resources Authority, General Revenue Bonds, 2/17 at 100.00 Aaa 1,906,621 Series 2007, Residual Trust 7039, 4.069%, 8/01/46 - FSA Insured (IF) 15,000 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, 1/14 at 100.00 A(4) 16,366,800 Series 2004, 5.250%, 1/01/23 (Pre-refunded 1/01/14) - FGIC Insured 1,500 University of Massachusetts Building Authority, Senior Lien 11/14 at 100.00 AAA 1,686,240 Project Revenue Bonds, Series 2004-1, 5.375%, 11/01/20 (Pre-refunded 11/01/14) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 52,420 Total Massachusetts 56,043,906 ------------------------------------------------------------------------------------------------------------------------------------ Michigan - 6.5% (4.0% of Total Investments) 5,490 Detroit City School District, Wayne County, Michigan, Unlimited No Opt. Call AAA 6,406,226 Tax School Building and Site Improvement Bonds, Series 2001A, 6.000%, 5/01/29 - FSA Insured 6,000 Detroit, Michigan, General Obligation Bonds, Series 2001A-1, 10/11 at 100.00 AAA 6,241,140 5.375%, 4/01/18 - MBIA Insured 7,420 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, 7/08 at 100.00 AAA 7,423,933 Series 1997A, 5.000%, 7/01/27 - MBIA Insured Detroit, Michigan, Sewerage Disposal System Revenue Bonds, Series 1999A: 15,825 5.750%, 7/01/26 (Pre-refunded 1/01/10) - FGIC Insured 1/10 at 101.00 Aaa 16,851,093 20,000 5.875%, 7/01/27 (Pre-refunded 1/01/10) - FGIC Insured 1/10 at 101.00 Aaa 21,337,400 1,085 Grand Rapids Community College, Kent County, Michigan, General 5/13 at 100.00 AAA 1,150,740 Obligation Refunding Bonds, Series 2003, 5.250%, 5/01/20 - AMBAC Insured 6,850 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 6,944,736 Metropolitan Wayne County Airport, Series 1998A, 5.375%, 12/01/15 - MBIA Insured (Alternative Minimum Tax) 10,000 Wayne County, Michigan, Limited Tax General Obligation Airport 12/11 at 101.00 AAA 10,373,500 Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.250%, 12/01/25 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 72,670 Total Michigan 76,728,768 ------------------------------------------------------------------------------------------------------------------------------------ Minnesota - 1.3% (0.8% of Total Investments) 13,020 Saint Paul Housing and Redevelopment Authority, Minnesota, 12/11 at 102.00 Aaa 14,882,641 Multifamily Housing Revenue Bonds, Marian Center Project, Series 2001A, 6.450%, 6/20/43 (Pre-refunded 12/20/11) ------------------------------------------------------------------------------------------------------------------------------------ Nebraska - 1.3% (0.8% of Total Investments) 14,520 Lincoln Electric System, Nebraska, Electric System Revenue Bonds, 9/17 at 100.00 AA 13,111,270 Series 2007A, Residuals 07-1007-9, 3.454%, 9/01/37 - FGIC Insured (IF) Nebraska Public Power District, General Revenue Bonds, Series 2005A: 1,000 5.000%, 1/01/24 - FSA Insured 1/15 at 100.00 AAA 1,033,710 1,000 5.000%, 1/01/25 - FSA Insured 1/15 at 100.00 AAA 1,033,710 ------------------------------------------------------------------------------------------------------------------------------------ 16,520 Total Nebraska 15,178,690 ------------------------------------------------------------------------------------------------------------------------------------
----- 33 ----- NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Nevada - 8.2% (5.0% of Total Investments) $ 8,475 Clark County, Nevada, General Obligation Bank Bonds, Southern 12/12 at 100.00 AAA $ 8,536,783 Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32 - MBIA Insured 3,630 Clark County, Nevada, General Obligation Bank Bonds, Southern 12/12 at 100.00 Aaa 3,951,001 Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32 (Pre-refunded 12/01/12) - MBIA Insured 7,370 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/14 at 100.00 Aa3 7,429,550 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 12,736,350 13,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 10,387,000 14,985 Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 6/12 at 100.00 Baa1 15,278,256 5.375%, 6/01/32 - FGIC Insured 25,300 Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 6/12 at 100.00 Baa1(4) 27,621,275 5.375%, 6/01/32 (Pre-refunded 6/01/12) - FGIC Insured 10,000 Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, Reno 6/12 at 100.00 AAA 10,834,000 Transportation Rail Access Corridor Project, Series 2002, 5.125%, 6/01/27 (Pre-refunded 6/01/12) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 97,760 Total Nevada 96,774,215 ------------------------------------------------------------------------------------------------------------------------------------ New Jersey - 2.2% (1.4% 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 2,111,720 2,250 5.125%, 10/01/22 - MBIA Insured 10/14 at 100.00 Aaa 2,355,525 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 4,000,805 3,850 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 3,988,138 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A: 8,250 5.000%, 1/01/19 - FGIC Insured 7/13 at 100.00 A 8,493,458 2,000 5.000%, 1/01/23 - FSA Insured 7/13 at 100.00 AAA 2,087,420 3,320 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 3,480,788 5.000%, 1/01/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 25,520 Total New Jersey 26,517,854 ------------------------------------------------------------------------------------------------------------------------------------ New Mexico - 0.3% (0.2% of Total Investments) 3,660 San Juan County, New Mexico, Subordinate Gross Receipts Tax 6/15 at 100.00 AAA 3,734,518 Revenue Bonds, Series 2005, 5.000%, 6/15/25 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ New York - 7.6% (4.6% of Total Investments) 1,880 Dormitory Authority of the State of New York, FHA-Insured Mortgage 2/15 at 100.00 Baa3 1,911,095 Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/23 - FGIC Insured 3,335 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 3,470,501 Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 - AMBAC Insured 3,820 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 3,563,716 2006A, 4.500%, 2/15/47 - MBIA Insured (UB) 8,685 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 8,796,168 Revenue Bonds, Series 1998A, 5.300%, 12/01/19 (Pre-refunded 6/01/08) - FSA Insured
----- 34 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ New York (continued) $ 6,900 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 AAA $ 6,379,395 Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA Insured (UB) 12,500 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 A- 12,715,625 Revenue Bonds, Series 2006A, 5.000%, 12/01/25 - FGIC Insured Metropolitan Transportation Authority, New York, State Service Contract Refunding Bonds, Series 2002A: 1,500 5.000%, 7/01/21 - FGIC Insured 7/12 at 100.00 AA- 1,539,885 5,000 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00 AA- 5,101,400 5,000 New York City, New York, General Obligation Bonds, Fiscal Series 9/15 at 100.00 AAA 5,262,900 2005F-1, 5.000%, 9/01/21 - AMBAC Insured 10,000 New York City, New York, General Obligation Bonds, Fiscal Series 4/15 at 100.00 AA 10,294,100 2005M, 5.000%, 4/01/26 - FGIC Insured 5,000 New York State Thruway Authority, General Revenue Bonds, Series 1/15 at 100.00 AAA 5,168,550 2005F, 5.000%, 1/01/26 - AMBAC Insured 3,650 New York State Urban Development Corporation, Service Contract 3/15 at 100.00 AAA 3,791,693 Revenue Bonds, Series 2005B, 5.000%, 3/15/25 - 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 1,038,060 5,000 5.000%, 3/15/25 - FGIC Insured 3/14 at 100.00 AAA 5,158,800 15,000 Triborough Bridge and Tunnel Authority, New York, Subordinate Lien 11/12 at 100.00 AAA 15,145,200 General Purpose Revenue Refunding Bonds, Series 2002E, 5.000%, 11/15/32 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 88,270 Total New York 89,337,088 ------------------------------------------------------------------------------------------------------------------------------------ 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 A 2,175,679 2,575 5.000%, 5/01/26 - FGIC Insured 5/14 at 100.00 A 2,585,583 5,000 North Carolina Municipal Power Agency 1, Catawba Electric Revenue 1/13 at 100.00 AAA 5,391,550 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 3,263,716 3,295 5.000%, 5/01/24 - AMBAC Insured 5/15 at 100.00 Aaa 3,343,568 ------------------------------------------------------------------------------------------------------------------------------------ 16,190 Total North Carolina 16,760,096 ------------------------------------------------------------------------------------------------------------------------------------ North Dakota - 0.6% (0.4% 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 2,292,436 1,355 5.000%, 12/15/23 - MBIA Insured 12/15 at 100.00 Aaa 1,412,466 3,000 5.000%, 12/15/24 - MBIA Insured 12/15 at 100.00 Aaa 3,113,400 ------------------------------------------------------------------------------------------------------------------------------------ 6,550 Total North Dakota 6,818,302 ------------------------------------------------------------------------------------------------------------------------------------ Ohio - 4.3% (2.6% of Total Investments) 2,650 Cleveland State University, Ohio, General Receipts Bonds, Series 6/14 at 100.00 A 2,743,280 2004, 5.250%, 6/01/24 - FGIC Insured 2,000 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 2,234,880 Obligation Bonds, Series 2004, 5.250%, 12/01/25 (Pre-refunded 12/01/14) - FSA Insured
----- 35 ----- NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Ohio (continued) $ 2,385 Columbus, Ohio, Tax Increment Financing Bonds, Easton Project, 6/14 at 100.00 AAA $ 2,428,717 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 2,260,412 Series 2005, 5.000%, 12/01/24 - MBIA Insured 19,600 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series 2006, 12/16 at 100.00 Aaa 17,707,228 4.250%, 12/01/32 - AMBAC Insured (UB) 20,100 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica Healthcare 11/09 at 101.00 AAA 20,111,055 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 3,296,190 Obligation Bonds, Series 2003, 5.000%, 12/01/28 (Pre-refunded 12/01/13) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 51,940 Total Ohio 50,781,762 ------------------------------------------------------------------------------------------------------------------------------------ Oklahoma - 3.1% (1.9% of Total Investments) 3,500 Oklahoma Capitol Improvement Authority, State Facilities Revenue 7/15 at 100.00 AAA 3,595,200 Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured 3,545 Oklahoma Housing Finance Agency, GNMA Collateralized Single Family No Opt. Call AAA 3,817,433 Mortgage Revenue Bonds, Series 1987A, 7.997%, 8/01/18 (Alternative Minimum Tax) 21,000 Oklahoma Municipal Power Authority, Power Supply System Revenue 1/17 at 100.00 A 18,636,240 Bonds, Series 2007, 4.500%, 1/01/47 - FGIC Insured 5,245 Oklahoma State Industries Authority, Revenue Bonds, Oklahoma 2/11 at 100.00 Aaa 5,327,347 Medical Research Foundation, Series 2001, 5.250%, 2/01/21 - AMBAC Insured 4,880 University of Oklahoma, Student Housing Revenue Bonds, Series 7/14 at 100.00 Aaa 5,033,769 2004, 5.000%, 7/01/22 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 38,170 Total Oklahoma 36,409,989 ------------------------------------------------------------------------------------------------------------------------------------ Oregon - 0.6% (0.4% of Total Investments) 2,535 Oregon Department of Administrative Services, Certificates of 5/15 at 100.00 AAA 2,627,350 Participation, Series 2005A, 5.000%, 5/01/25 - FSA Insured 3,470 Oregon Department of Administrative Services, Certificates of 11/15 at 100.00 AA- 3,630,696 Participation, Series 2005B, 5.000%, 11/01/18 - FGIC Insured 1,080 Oregon Housing and Community Services Department, Single Family 7/08 at 100.00 Aa2 1,080,875 Mortgage Revenue Bonds, Series 1995A, 6.450%, 7/01/26 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 7,085 Total Oregon 7,338,921 ------------------------------------------------------------------------------------------------------------------------------------ Pennsylvania - 3.2% (2.0% of Total Investments) 7,925 Commonwealth Financing Authority, Pennsylvania, State 6/16 at 100.00 AAA 8,228,924 Appropriation Lease Bonds, Series 2006A, 5.000%, 6/01/26 - FSA Insured 1,800 Pennsylvania Higher Educational Facilities Authority, Revenue 5/15 at 100.00 AAA 1,825,469 Bonds, Drexel University, Series 2005A, 5.000%, 5/01/28 - MBIA Insured 11,740 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 11,436,404 Bonds, School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 - FSA Insured (UB) 2,625 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 6/16 at 100.00 AAA 2,723,858 2006A, 5.000%, 12/01/26 - AMBAC Insured 6,335 Radnor Township School District, Delaware County, Pennsylvania, 8/15 at 100.00 Aaa 6,517,701 General Obligation Bonds, Series 2005B, 5.000%, 2/15/30 - FSA Insured Reading School District, Berks County, Pennsylvania, General Obligation Bonds, Series 2005: 3,285 5.000%, 1/15/22 - FSA Insured 1/16 at 100.00 AAA 3,445,308 3,450 5.000%, 1/15/23 - FSA Insured 1/16 at 100.00 AAA 3,602,214 ------------------------------------------------------------------------------------------------------------------------------------ 37,160 Total Pennsylvania 37,779,878 ------------------------------------------------------------------------------------------------------------------------------------
----- 36 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Puerto Rico - 0.9% (0.6% of Total Investments) $ 2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/15 at 100.00 AAA $ 2,765,050 2005RR, 5.000%, 7/01/30 (Pre-refunded 7/01/15) - XLCA Insured 2,000 Puerto Rico Highway and Transportation Authority, Highway Revenue 7/13 at 100.00 BBB+ 2,013,340 Bonds, Series 2003G, 5.250%, 7/01/19 - FGIC Insured 1,550 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, No Opt. Call A+ 1,551,039 8/01/21 - CIFG Insured 36,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call A+ 4,839,840 Bonds, Series 2007A, 0.000%, 8/01/42 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 42,050 Total Puerto Rico 11,169,269 ------------------------------------------------------------------------------------------------------------------------------------ Rhode Island - 2.2% (1.3% of Total Investments) 2,195 Providence Housing Development Corporation, Rhode Island, 7/08 at 100.00 AAA 2,290,175 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, Special 2/11 at 100.00 AAA 21,888,594 Obligation Refunding Bonds, Series 1993B, 5.250%, 8/01/21 (Pre-refunded 2/01/11) - MBIA Insured 1,405 Rhode Island Health & Educational Building Corporation, Higher 9/14 at 100.00 Aaa 1,488,429 Education Auxiliary Enterprise Revenue Bonds, Series 2004A, 5.500%, 9/15/24 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 24,075 Total Rhode Island 25,667,198 ------------------------------------------------------------------------------------------------------------------------------------ South Carolina - 5.3% (3.2% of Total Investments) 10,000 Beaufort County, South Carolina, Tax Increment Bonds, New River 12/12 at 100.00 AAA 10,101,500 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 2,083,480 2,105 5.250%, 8/15/23 - MBIA Insured 8/14 at 100.00 AAA 2,183,517 4,855 Piedmont Municipal Power Agency, South Carolina, Electric Revenue No Opt. Call AAA 3,935,609 Bonds, Series 1988A, 0.000%, 1/01/13 - AMBAC Insured (ETM) 4,795 Piedmont Municipal Power Agency, South Carolina, Electric Revenue 7/09 at 76.63 AAA 3,458,442 Bonds, Series 1988A, 0.000%, 1/01/13 (Pre-refunded 7/01/09) - AMBAC Insured 7,955 Piedmont Municipal Power Agency, South Carolina, Electric Revenue No Opt. Call AAA 6,300,599 Bonds, Series 1988A, 0.000%, 1/01/13 - AMBAC Insured 8,000 South Carolina JOBS Economic Development Authority, Industrial 11/12 at 100.00 AAA 8,163,840 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, Industrial 11/12 at 100.00 AAA 10,000,000 Revenue Bonds, South Carolina Electric and Gas Company, Series 2002B, 5.450%, 11/01/32 - AMBAC Insured (Alternative Minimum Tax) 17,500 South Carolina Transportation Infrastructure Bank, Revenue Bonds, 10/16 at 100.00 A1 16,248,225 Series 2007A, 4.500%, 10/01/34 - XLCA Insured ------------------------------------------------------------------------------------------------------------------------------------ 67,210 Total South Carolina 62,475,212 ------------------------------------------------------------------------------------------------------------------------------------ Tennessee - 0.6% (0.3% of Total Investments) 6,455 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/11 at 100.00 AAA 6,675,051 Revenue Bonds, Series 2001A, 5.500%, 3/01/18 - FSA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------
----- 37 ----- NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Texas - 16.1% (9.9% of Total Investments) $ 22,650 Brazos River Authority, Texas, Revenue Refunding Bonds, Houston 5/08 at 102.00 AAA $ 22,950,339 Industries Inc., Series 1998C, 5.125%, 5/01/19 - AMBAC Insured 521 Capital Area Housing Finance Corporation, Texas, FNMA Backed Single 4/12 at 106.00 AAA 537,382 Family Mortgage Revenue Refunding Bonds, Series 2002A-2, 6.300%, 4/01/35 - AMBAC Insured (Alternative Minimum Tax) 12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue Bonds, 11/09 at 100.00 A+ 12,596,750 Series 2000A, 6.125%, 11/01/35 - FGIC Insured (Alternative Minimum Tax) Harris County, Texas, Toll Road Senior Lien Revenue Bonds, Series 1989: 9,000 0.000%, 8/15/18 (Pre-refunded 8/15/09) - AMBAC Insured 8/09 at 53.84 AAA 4,696,740 39,000 0.000%, 8/15/19 (Pre-refunded 8/15/09) - AMBAC Insured 8/09 at 50.26 AAA 18,998,850 7,280 0.000%, 8/15/20 (Pre-refunded 8/15/09) - AMBAC Insured 8/09 at 46.91 AAA 3,310,726 5,085 0.000%, 8/15/21 (Pre-refunded 8/15/09) - AMBAC Insured 8/09 at 43.80 AAA 2,158,684 25,000 Harris County-Houston Sports Authority, Texas, Junior Lien Revenue 11/11 at 100.00 AAA 25,118,000 Refunding Bonds, Series 2001B, 5.250%, 11/15/40 - MBIA Insured 4,671 Houston Housing Finance Corporation, Texas, GNMA Collateralized 9/11 at 105.00 Aaa 4,761,758 Mortgage Multifamily Housing Revenue Bonds, RRG Apartments Project, Series 2001, 6.350%, 3/20/42 Houston, Texas, First Lien Combined Utility System Revenue Bonds, Series 2004A: 4,000 5.250%, 5/15/24 - FGIC Insured 5/14 at 100.00 AA 4,082,840 5,000 5.250%, 5/15/25 - MBIA Insured 5/14 at 100.00 AAA 5,193,650 6,570 Houston, Texas, General Obligation Public Improvement Bonds, Series 3/11 at 100.00 AAA 7,056,180 2001A, 5.375%, 3/01/19 (Pre-refunded 3/01/11) - FSA Insured 17,500 Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, 9/11 at 100.00 AAA 17,712,100 Convention and Entertainment Project, Series 2001B, 5.250%, 9/01/33 - AMBAC Insured 4,170 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/10 at 100.00 AAA 4,441,092 Series 2000B, 5.500%, 7/01/30 (Pre-refunded 7/01/10) - FSA Insured 23,865 Jefferson County Health Facilities Development Corporation, Texas, 8/11 at 100.00 AAA 24,393,132 FHA-Insured Mortgage Revenue Bonds, Baptist Hospital of Southeast Texas, Series 2001, 5.500%, 8/15/41 - AMBAC Insured 140 Lower Colorado River Authority, Texas, Revenue Refunding and 5/11 at 100.00 AAA 149,446 Improvement Bonds, Series 2001A, 5.000%, 5/15/21 (Pre-refunded 5/15/11) - MBIA Insured 8,065 Lower Colorado River Authority, Texas, Revenue Refunding and 5/11 at 100.00 AAA 8,202,347 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 - FGIC Insured (Alternative Minimum Tax) 10/11 at 100.00 AA+ 3,235,608 3,375 5.500%, 10/01/19 - FGIC Insured (Alternative Minimum Tax) 10/11 at 100.00 AA+ 3,402,101 7,205 San Antonio, Texas, Airport System Improvement Revenue Bonds, Series 7/11 at 101.00 A+ 7,362,069 2001, 5.375%, 7/01/15 - FGIC Insured (Alternative Minimum Tax) 7,550 Waco Health Facilities Development Corporation, Texas, Hillcrest 8/16 at 100.00 AAA 7,579,823 Health System Project, FHA Insured Mortgage Revenue Bonds, Series 2006A, 5.000%, 8/01/31 - MBIA Insured 1,840 Ysleta Independent School District Public Facility Corporation, 11/09 at 100.00 AAA 1,879,910 Texas, Lease Revenue Refunding Bonds, Series 2001, 5.375%, 11/15/24 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 218,192 Total Texas 189,819,527 ------------------------------------------------------------------------------------------------------------------------------------
----- 38 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Utah - 0.2% (0.1% of Total Investments) $ 2,000 Clearfield City, Utah, Sales Tax Revenue Bonds, Series 2003, 5.000%, 7/13 at 100.00 AA-(4) $ 2,184,640 7/01/28 (Pre-refunded 7/01/13) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ Virginia - 1.4% (0.8% of Total Investments) 1,035 Loudoun County Industrial Development Authority, Virginia, Lease 6/14 at 100.00 AAA 1,118,100 Revenue Bonds, Public Safety Facilities, Series 2003A, 5.250%, 12/15/20 - FSA Insured 4,840 Metropolitan Washington D.C. Airports Authority, Airport System 10/11 at 101.00 AAA 4,957,999 Revenue Bonds, Series 2001A, 5.500%, 10/01/19 - MBIA Insured (Alternative Minimum Tax) 10,000 Virginia Housing Development Authority, Commonwealth Mortgage Bonds, 7/11 at 100.00 AAA 10,042,500 Series 2001H-1, 5.375%,7/01/36 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 15,875 Total Virginia 16,118,599 ------------------------------------------------------------------------------------------------------------------------------------ Washington - 2.3% (1.4% of Total Investments) 2,500 Grant County Public Utility District 2, Washington, Revenue Bonds, 1/15 at 100.00 Aa2 2,508,275 Wanapum Hydroelectric Development, Series 2005A, 5.000%, 1/01/29 - FGIC Insured 3,500 King County School District 401, Highline, Washington, General 12/14 at 100.00 AA+ 3,600,660 Obligation Bonds, Series 2004, 5.000%, 10/01/24 - FGIC Insured 3,195 Kitsap County, Washington, Limited Tax General Obligation Bonds, 7/10 at 100.00 AAA 3,402,707 Series 2000, 5.500%, 7/01/25 (Pre-refunded 7/01/10) - AMBAC Insured 4,250 Snohomish County Public Utility District 1, Washington, Generation No Opt. Call Aaa 5,144,370 System Revenue Bonds, Series 1989, 6.650%, 1/01/16 - FGIC Insured (ETM) Tacoma, Washington, Solid Waste Utility Revenue Refunding Bonds, Series 2006: 3,890 5.000%, 12/01/24 - XLCA Insured 12/16 at 100.00 AA- 3,922,248 4,085 5.000%, 12/01/25 - XLCA Insured 12/16 at 100.00 AA- 4,104,649 4,290 5.000%, 12/01/26 - XLCA Insured 12/16 at 100.00 AA- 4,292,789 ------------------------------------------------------------------------------------------------------------------------------------ 25,710 Total Washington 26,975,698 ------------------------------------------------------------------------------------------------------------------------------------ Wisconsin - 2.5% (1.5% of Total Investments) 15,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/08 at 101.00 AAA 15,053,700 Bonds, Marshfield Clinic, Series 1997, 5.750%, 2/15/27 - MBIA Insured 290 Wisconsin, General Obligation Bonds, Series 2004-3, 5/14 at 100.00 Aa3 308,270 5.250%, 5/01/20 - FGIC Insured 2,600 Wisconsin, General Obligation Bonds, Series 2004-3, 5/14 at 100.00 Aaa 2,890,810 5.250%, 5/01/20 (Pre-refunded 5/01/14) - FGIC Insured 10,945 Wisconsin, General Obligation Bonds, Series 2004-4, 5/14 at 100.00 AAA 11,507,902 5.000%, 5/01/20 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 28,835 Total Wisconsin 29,760,682 ------------------------------------------------------------------------------------------------------------------------------------ 2,022,535 Total Long-Term Investments (cost $1,840,955,928) - 160.5% 1,892,451,313 ------------------------------------------------------------------------------------------------------------------------------------
----- 39 ----- NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Amount (000) Description (1) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Short-Term Investments - 2.7% (1.6% of Total Investments) $ 2,300 California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A, VMIG-1 $ 2,300,000 Trust M5J-REG D, Variable Rate Demand Obligations, 5.450%, 5/01/12 - MBIA Insured (5) 17,630 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, ROCS 660, Variable Rate VMIG-1 17,630,000 Demand Obligations, 4.010%, 5/01/34 - FGIC Insured (5) 6,960 Massachusetts Turnpike Authority, Metropolitan Highway System Revenue Bonds, Senior A-1+ 6,960,000 Series 1997A, Trust 489, Variable Rate Demand Obligations, 6.000%, 1/01/37 - MBIA Insured (5) 4,585 Mesa County Valley School District 51, Grand Junction, Colorado, General Obligation VMIG-1 4,585,000 Bonds, Trust 2696, Variable Rate Demand Obligations, 4.000%, 6/01/13 - MBIA Insured (5) ------------------------------------------------------------------------------------------------------------------------------------ $ 31,475 Total Short-Term Investments (cost $31,475,000) 31,475,000 ============------------------------------------------------------------------------------------------------------------------------ Total Investments (cost $1,872,430,928) - 163.2% 1,923,926,313 --------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (8.6)% (101,853,333) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.1% 36,711,630 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (57.7)% (6) (680,000,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $1,178,784,610 =====================================================================================================================
As of April 30, 2008, all of the bonds in the Portfolio of Investments, excluding temporary investments in short-term municipal securities, are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments may reflect the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Investment has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. The rate disclosed is that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. (6) Preferred Shares, at Liquidation Value as a percentage of total investments is (35.3)%. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. ----- 40 ----- NIF | Nuveen Premier Insured Municipal Income Fund, Inc. | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Alabama - 1.2% (0.8% of Total Investments) $ 3,200 Auburn, Alabama, General Obligation Warrants, Series 2005, 5.000%, 8/15 at 100.00 AAA $ 3,273,984 8/01/30 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ Arizona - 3.0% (1.9% of Total Investments) 4,370 Phoenix Civic Improvement Corporation, Arizona, Junior Lien Water 7/15 at 100.00 AAA 4,454,822 System Revenue Bonds, Series 2005, 4.750%, 7/01/25 - MBIA Insured 5,000 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic Plaza, No Opt. Call AA 3,884,350 Series 2005B, 0.000%, 7/01/40 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 9,370 Total Arizona 8,339,172 ------------------------------------------------------------------------------------------------------------------------------------ Arkansas - 1.5% (0.9% of Total Investments) 4,020 Northwest Community College District, Arkansas, General Obligation 5/15 at 100.00 AAA 4,122,992 Bonds, Series 2005, 5.000%, 5/15/23 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ California - 35.1% (21.7% 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 (Pre-refunded 12/01/09) - AMBAC Insured 12/09 at 101.00 AAA 7,192,868 10,000 6.000%, 12/01/29 (Pre-refunded 12/01/09) - AMBAC Insured 12/09 at 101.00 AAA 10,675,400 1,000 California Department of Water Resources, Water System Revenue 12/14 at 100.00 AAA 1,029,910 Bonds, Central Valley Project, Series 2005AC, 5.000%, 12/01/26 - MBIA Insured 1,250 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 AAA 1,298,050 Revenue Bonds, Pacific Gas and Electric Company, Series 1996A, 5.350%, 12/01/16 - MBIA Insured (Alternative Minimum Tax) 4,775 Clovis Unified School District, Fresno County, California, General No Opt. Call AA 1,952,880 Obligation Bonds, Series 2001A, 0.000%, 8/01/25 - FGIC Insured 1,005 Folsom Cordova Unified School District, Sacramento County, 10/14 at 100.00 AAA 1,034,406 California, General Obligation Bonds, School Facilities Improvement District 2, Series 2004B, 5.000%, 10/01/26 - FSA Insured 1,150 Kern Community College District, California, General Obligation No Opt. Call AAA 533,439 Bonds, Series 2006, 0.000%, 11/01/23 - FSA Insured 50 Kern County Housing Authority, California, GNMA Guaranteed No Opt. Call AAA 51,906 Tax-Exempt Mortgage Obligation Bonds, Series 1994A-I, 7.150%, 12/30/24 (Alternative Minimum Tax) 35 Kern County Housing Authority, California, GNMA Guaranteed No Opt. Call AAA 36,424 Tax-Exempt Mortgage Obligation Bonds, Series 1994A-III, 7.450%, 6/30/25 (Alternative Minimum Tax) 4,365 La Verne-Grand Terrace Housing Finance Agency, California, Single No Opt. Call AAA 5,688,075 Family Residential Mortgage Revenue Bonds, Series 1984A, 10.250%, 7/01/17 (ETM) 5,000 Ontario Redevelopment Financing Authority, San Bernardino County, No Opt. Call AAA 6,371,000 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 11,349,084 Mortgage Revenue Refunding Bonds, Series 1990B, 7.500%, 8/01/23 (ETM) 10,840 San Bernardino County, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 12,616,568 Program Single Family Home Mortgage Revenue Bonds, Series 1988A, 8.300%, 9/01/14 (Alternative Minimum Tax) (ETM) 9,515 San Bernardino, California, GNMA Mortgage-Backed Securities Program No Opt. Call AAA 11,935,235 Single Family Mortgage Revenue Refunding Bonds, Series 1990A, 7.500%, 5/01/23 (ETM)
----- 41 ----- NIF | Nuveen Premier Insured Municipal Income Fund, Inc. (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ California (continued) $ 4,300 San Francisco Airports Commission, California, Revenue Refunding 5/11 at 100.00 AAA $ 4,319,694 Bonds, San Francisco International Airport, Second Series 2001, Issue 27A, 5.125%, 5/01/19 - MBIA Insured (Alternative Minimum Tax) 29,000 San Joaquin Hills Transportation Corridor Agency, Orange County, No Opt. Call AAA 7,475,330 California, Toll Road Revenue Refunding Bonds, Series 1997A, 0.000%, 1/15/31 - MBIA Insured 2,000 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/14 at 100.00 AAA 2,115,540 Merged Area Redevelopment Project, Series 2004A, 5.250%, 8/01/19 - MBIA Insured 4,475 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/17 at 100.00 AAA 4,117,448 Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30 - MBIA Insured (UB) 4,455 San Mateo County Community College District, California, General No Opt. Call AAA 2,348,186 Obligation Bonds, Series 2006B, 0.000%, 9/01/21 - MBIA Insured 1,815 University of California, General Revenue Bonds, Series 2005G, 5/13 at 101.00 AAA 1,815,908 4.750%, 5/15/31 - MBIA Insured 3,600 Ventura County Community College District, California, General 8/15 at 100.00 AAA 3,703,356 Obligation Bonds, Series 2005B, 5.000%, 8/01/28 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 114,260 Total California 97,660,707 ------------------------------------------------------------------------------------------------------------------------------------ Colorado - 10.3% (6.4% of Total Investments) 1,500 Adams and Arapahoe Counties Joint School District 28J, Aurora, 12/13 at 100.00 AAA 1,583,835 Colorado, General Obligation Bonds, Series 2003A, 5.125%, 12/01/21 - FSA Insured 2,500 Colorado Health Facilities Authority, Colorado, Revenue Bonds, 4/18 at 100.00 AAA 2,501,000 Catholic Health Initiatives, Series 2006C-1, Trust 1090, 11.524%, 10/01/41 - FSA Insured (IF) 2,500 Denver City and County, Colorado, Airport System Revenue Refunding 11/12 at 100.00 A+ 2,530,425 Bonds, Series 2002E, 5.500%, 11/15/18 - FGIC Insured (Alternative Minimum Tax) 6,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 102.00 AAA 6,536,700 Series 2000A, 5.750%, 9/01/29 (Pre-refunded 9/01/10) - MBIA Insured 20,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AAA 5,386,800 Series 2000B, 0.000%, 9/01/30 - MBIA Insured 4,405 Garfield, Eagle and Pitkin Counties School District RE-1, Roaring 12/14 at 100.00 AAA 4,555,255 Fork, Colorado, General Obligation Bonds, Series 2005A, 5.000%, 12/15/24 - FSA Insured 2,065 Jefferson County School District R1, Colorado, General Obligation 12/14 at 100.00 AAA 2,135,437 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 1,449,297 General Obligation Bonds, Series 2004, 5.000%, 12/01/22 - MBIA Insured 1,000 University of Colorado, Enterprise System Revenue Bonds, Series 6/12 at 100.00 AA-(4) 1,079,430 2002A, 5.000%, 6/01/19 (Pre-refunded 6/01/12) - FGIC Insured 1,000 University of Colorado, Enterprise System Revenue Bonds, Series 6/15 at 100.00 AA- 1,002,910 2005, 5.000%, 6/01/30 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 42,360 Total Colorado 28,761,089 ------------------------------------------------------------------------------------------------------------------------------------ District of Columbia - 0.2% (0.1% of Total Investments) 665 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 549,343 Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals 1606, 8.033%, 10/01/30 - AMBAC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ Florida - 3.8% (2.3% of Total Investments) 2,285 Florida Municipal Loan Council, Revenue Bonds, Series 2005A, 2/15 at 100.00 AAA 2,348,066 5.000%, 2/01/23 - MBIA Insured 1,500 JEA, Florida, Water and Sewerage System Revenue Bonds, Series 10/13 at 100.00 AA- 1,568,295 2004A, 5.000%, 10/01/19 - FGIC Insured
----- 42 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Florida (continued) $ 4,240 Reedy Creek Improvement District, Florida, Utility Revenue Bonds, 10/13 at 100.00 AAA $ 4,559,272 Series 2003-1, 5.250%, 10/01/17 - MBIA Insured 2,000 Tallahassee, Florida, Energy System Revenue Bonds, Series 2005, 10/15 at 100.00 AAA 2,048,460 5.000%, 10/01/28 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,025 Total Florida 10,524,093 ------------------------------------------------------------------------------------------------------------------------------------ Georgia - 3.5% (2.2% of Total Investments) 2,950 Atlanta, Georgia, Airport General Revenue Bonds, Series 2004G, 1/15 at 100.00 AAA 3,042,571 5.000%, 1/01/25 - FSA Insured 6,500 Medical Center Hospital Authority, Georgia, Revenue Anticipation 8/09 at 102.00 AAA 6,748,560 Certificates, Columbus Regional Healthcare System, Inc. Project, Series 1999, 5.500%, 8/01/25 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 9,450 Total Georgia 9,791,131 ------------------------------------------------------------------------------------------------------------------------------------ Hawaii - 3.8% (2.4% of Total Investments) 2,250 Hawaii Department of Budget and Finance, Special Purpose Revenue 1/09 at 101.00 AAA 2,286,878 Bonds, Hawaiian Electric Company Inc., Series 1999D, 6.150%, 1/01/20 - AMBAC Insured (Alternative Minimum Tax) 8,030 Hawaii Department of Transportation, Airport System Revenue 7/10 at 101.00 A2 8,377,298 Refunding Bonds, Series 2000B, 6.500%, 7/01/15 - FGIC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 10,280 Total Hawaii 10,664,176 ------------------------------------------------------------------------------------------------------------------------------------ Illinois - 17.7% (10.9% of Total Investments) 4,000 Bridgeview, Illinois, General Obligation Bonds, Series 2002, 12/12 at 100.00 A- 4,120,320 5.000%, 12/01/22 - FGIC Insured 8,200 Chicago Board of Education, Illinois, General Obligation Lease No Opt. Call AAA 9,079,942 Certificates, Series 1992A, 6.250%, 1/01/15 - MBIA Insured 10,000 Chicago, Illinois, General Obligation Refunding Bonds, Series 1/10 at 101.00 AA- 10,287,900 2000D, 5.500%, 1/01/35 - FGIC Insured 1,450 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 1,487,613 O'Hare International Airport, Series 2005A, 5.250%, 1/01/24 - MBIA Insured 23,110 Illinois Development Finance Authority, Local Government Program No Opt. Call Aaa 15,752,696 Revenue Bonds, Kane, Cook and DuPage Counties School District U46 - Elgin, Series 2002, 0.000%, 1/01/17 - FSA Insured 2,500 Illinois Municipal Electric Agency, Power Supply System Revenue 2/17 at 100.00 A+ 2,442,125 Bonds, Series 2007A, 5.000%, 2/01/35 - FGIC Insured 5,010 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 2,593,978 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 3,460,490 McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1992A, 9.000%, 6/01/09 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 57,495 Total Illinois 49,225,064 ------------------------------------------------------------------------------------------------------------------------------------ Indiana - 3.8% (2.3% of Total Investments) 2,130 Indiana Municipal Power Agency, Power Supply Revenue Bonds, Series 1/17 at 100.00 AAA 2,128,126 2007A, 5.000%, 1/01/42 - MBIA Insured Indiana University, Parking Facility Revenue Bonds, Series 2004: 1,015 5.250%, 11/15/19 - AMBAC Insured 11/14 at 100.00 AAA 1,098,057 1,060 5.250%, 11/15/20 - AMBAC Insured 11/14 at 100.00 AAA 1,139,564 1,100 5.250%, 11/15/21 - AMBAC Insured 11/14 at 100.00 AAA 1,174,525 9,255 Indianapolis Local Public Improvement Bond Bank, Indiana, Series No Opt. Call AAA 3,916,346 1999E, 0.000%, 2/01/25 - AMBAC Insured 1,000 Metropolitan School District Steuben County K-5 Building 7/14 at 102.00 AAA 1,072,200 Corporation, Indiana, First Mortgage Bonds, Series 2003, 5.250%, 1/15/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 15,560 Total Indiana 10,528,818 ------------------------------------------------------------------------------------------------------------------------------------ Iowa - 1.2% (0.8% of Total Investments) 3,345 Ames, Iowa, Hospital Revenue Refunding Bonds, Mary Greeley Medical 6/13 at 100.00 Aaa 3,479,135 Center, Series 2003, 5.000%, 6/15/17 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------
----- 43 ----- NIF | Nuveen Premier Insured Municipal Income Fund, Inc. (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Kansas - 1.0% (0.6% of Total Investments) $ 2,760 Neosho County Unified School District 413, Kansas, General 9/14 at 100.00 Aaa $ 2,826,019 Obligation Bonds, Series 2006, 5.000%, 9/01/31 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ Louisiana - 2.9% (1.8% of Total Investments) 1,000 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge 7/14 at 100.00 AAA 1,029,090 General Hospital, Series 2004, 5.250%, 7/01/24 - MBIA Insured 7,160 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 5/16 at 100.00 AAA 7,079,880 2006, 4.750%, 5/01/39 - FSA Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ 8,160 Total Louisiana 8,108,970 ------------------------------------------------------------------------------------------------------------------------------------ Maryland - 2.2% (1.4% of Total Investments) 1,200 Maryland Economic Development Corporation, Student Housing Revenue 6/16 at 100.00 A+ 1,117,872 Refunding Bonds, University of Maryland College Park Projects, Series 2006, 5.000%, 6/01/28 - CIFG Insured 5,000 Maryland Transportation Authority, Airport Parking Revenue Bonds, 3/12 at 101.00 AAA 5,002,150 Baltimore-Washington International Airport Passenger Facility, Series 2002B, 5.125%, 3/01/21 - AMBAC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 6,200 Total Maryland 6,120,022 ------------------------------------------------------------------------------------------------------------------------------------ Massachusetts - 1.8% (1.1% of Total Investments) 4,400 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 4,587,968 Revenue Bonds, Series 2005A, 5.000%, 8/15/23 - FSA Insured (UB) 575 Massachusetts Water Resources Authority, General Revenue Bonds, 2/17 at 100.00 Aaa 453,020 Series 2007, Residual Trust 7039, 4.069%, 8/01/46 - FSA Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ 4,975 Total Massachusetts 5,040,988 ------------------------------------------------------------------------------------------------------------------------------------ Michigan - 3.7% (2.3% of Total Investments) 6,500 Michigan Higher Education Student Loan Authority, Revenue Bonds, No Opt. Call AAA 6,691,555 Series 2000 XII-T, 5.300%, 9/01/10 - AMBAC Insured (Alternative Minimum Tax) 3,810 Michigan Housing Development Authority, GNMA Collateralized 8/12 at 102.00 Aaa 3,774,643 Limited Obligation Multifamily Housing Revenue Bonds, Cranbrook Apartments, Series 2001A, 5.500%, 2/20/43 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 10,310 Total Michigan 10,466,198 ------------------------------------------------------------------------------------------------------------------------------------ Minnesota - 1.8% (1.1% of Total Investments) 4,860 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 1/11 at 100.00 AA- 4,976,494 Airport Revenue Bonds, Series 2001B, 5.750%, 1/01/15 - FGIC Insured (Alternative Minimum Tax) 145 Minnesota Housing Finance Agency, Rental Housing Bonds, Series 8/08 at 100.00 AAA 145,394 1995D, 5.950%, 2/01/18 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,005 Total Minnesota 5,121,888 ------------------------------------------------------------------------------------------------------------------------------------ Missouri - 0.7% (0.5% of Total Investments) 2,000 Missouri Western State College, Auxiliary System Revenue Bonds, 10/13 at 100.00 AAA 2,057,720 Series 2003, 5.000%, 10/01/21 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ Nevada - 4.8% (3.0% of Total Investments) 2,100 Clark County, Nevada, General Obligation Bank Bonds, Southern 12/12 at 100.00 AAA 2,115,309 Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32 - MBIA Insured 900 Clark County, Nevada, General Obligation Bank Bonds, Southern 12/12 at 100.00 Aaa 979,587 Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32 (Pre-refunded 12/01/12) - MBIA Insured
----- 44 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Nevada (continued) Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000: $ 160 0.000%, 1/01/28 - AMBAC Insured No Opt. Call AAA $ 42,254 2,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 1,598,000 7,990 Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, Reno 6/12 at 100.00 AAA 8,694,558 Transportation Rail Access Corridor Project, Series 2002, 5.250%, 6/01/41 (Pre-refunded 6/01/12) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 13,150 Total Nevada 13,429,708 ------------------------------------------------------------------------------------------------------------------------------------ New Jersey - 1.2% (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 1,247,004 1,200 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 1,243,056 800 Rutgers State University, New Jersey, Certificates of Participation, 1/14 at 100.00 AAA 822,592 Lower Georges Street University Redevelopment Associates LLC, Series 2004, 5.000%, 1/01/24 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 3,200 Total New Jersey 3,312,652 ------------------------------------------------------------------------------------------------------------------------------------ New York - 6.8% (4.2% of Total Investments) 1,000 Dormitory Authority of the State of New York, FHA-Insured Mortgage 2/15 at 100.00 Baa3 1,016,540 Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/23 - FGIC Insured 20 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 15,976 Driver Trust 1649, 2006, 6.799%, 2/15/47 - MBIA Insured (IF) 2,125 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 1,982,434 Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB) 5,000 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 A- 5,086,250 Revenue Bonds, Series 2006A, 5.000%, 12/01/25 - FGIC Insured 10,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 10,990,900 Revenue Refunding Bonds, Series 2002F, 5.250%, 11/15/27 (Pre-refunded 11/15/12) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 18,145 Total New York 19,092,100 ------------------------------------------------------------------------------------------------------------------------------------ North Carolina - 2.3% (1.4% of Total Investments) 3,100 North Carolina Medical Care Commission, FHA-Insured Mortgage 10/13 at 100.00 AAA 3,156,327 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 Revenue 5/15 at 100.00 Aaa 3,120,486 Bonds, Series 2005A, 5.000%, 5/01/22 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,150 Total North Carolina 6,276,813 ------------------------------------------------------------------------------------------------------------------------------------ Ohio - 1.5% (0.9% of Total Investments) 4,600 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series 2006, 12/16 at 100.00 Aaa 4,155,778 4.250%, 12/01/32 - AMBAC Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ Oklahoma - 1.6% (1.0% of Total Investments) 3,500 Oklahoma Capitol Improvement Authority, State Facilities Revenue 7/15 at 100.00 AAA 3,595,200 Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured 745 Oklahoma Housing Finance Agency, GNMA Collateralized Single Family No Opt. Call AAA 802,253 Mortgage Revenue Bonds, Series 1987A, 7.997%, 8/01/18 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 4,245 Total Oklahoma 4,397,453 ------------------------------------------------------------------------------------------------------------------------------------ Oregon - 4.3% (2.7% 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 5,024,450 7,000 5.000%, 7/01/32 - MBIA Insured 1/13 at 100.00 AAA 7,013,930 ------------------------------------------------------------------------------------------------------------------------------------ 12,000 Total Oregon 12,038,380 ------------------------------------------------------------------------------------------------------------------------------------
----- 45 ----- NIF | Nuveen Premier Insured Municipal Income Fund, Inc. (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Pennsylvania - 3.4% (2.1% of Total Investments) $ 1,500 Allegheny County Sanitary Authority, Pennsylvania, Sewerage Revenue 12/15 at 100.00 AAA $ 1,540,905 Bonds, Series 2005A, 5.000%, 12/01/23 - MBIA Insured 4,000 Commonwealth Financing Authority, Pennsylvania, State Appropriation 6/16 at 100.00 AAA 4,153,400 Lease Bonds, Series 2006A, 5.000%, 6/01/26 - FSA Insured 2,680 Pennsylvania Public School Building Authority, Lease Revenue Bonds, 12/16 at 100.00 AAA 2,610,695 School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 - FSA Insured (UB) 1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 6/16 at 100.00 AAA 1,089,543 2006A, 5.000%, 12/01/26 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 9,230 Total Pennsylvania 9,394,543 ------------------------------------------------------------------------------------------------------------------------------------ Puerto Rico - 2.3% (1.4% of Total Investments) 2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/15 at 100.00 A3 2,482,275 2005RR, 5.000%, 7/01/22 - FGIC Insured 1,000 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, 8/01/21 - No Opt. Call A+ 1,000,670 CIFG Insured 5,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call A+ 672,200 Bonds, Series 2007A, 0.000%, 8/01/42 - FGIC Insured 2,000 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call AAA 2,177,000 Authority, Series 2003AA, 5.500%, 7/01/17 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,500 Total Puerto Rico 6,332,145 ------------------------------------------------------------------------------------------------------------------------------------ Tennessee - 3.8% (2.3% of Total Investments) 3,000 Blount County Public Building Authority, Tennessee, Local 6/15 at 100.00 Aaa 3,044,550 Government Improvement Loans, Oak Ridge General Obligation, 2005 Series B9A, Variable Rate Demand Obligations, 5.000%, 6/01/24 - AMBAC Insured 2,055 Memphis, Tennessee, Sanitary Sewerage System Revenue Bonds, Series 10/14 at 100.00 AAA 2,140,735 2004, 5.000%, 10/01/22 - FSA Insured 5,000 Metropolitan Government of Nashville-Davidson County Health and 11/09 at 101.00 AAA 5,326,150 Educational Facilities Board, Tennessee, Revenue Bonds, Ascension Health Credit Group, Series 1999A, 6.000%, 11/15/30 (Pre-refunded 11/15/09) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,055 Total Tennessee 10,511,435 ------------------------------------------------------------------------------------------------------------------------------------ Texas - 10.6% (6.6% of Total Investments) 12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 A+ 12,239,750 Refunding and Improvement Bonds, Series 2001A, 5.500%, 11/01/35 - FGIC Insured (Alternative Minimum Tax) 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 A3 4,667,667 4,800 5.250%, 12/15/21 - FGIC Insured 12/13 at 100.00 A3 4,886,400 7,600 San Antonio, Texas, Airport System Improvement Revenue Bonds, 7/11 at 101.00 A+ 7,725,476 Series 2001, 5.375%, 7/01/16 - FGIC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 29,465 Total Texas 29,519,293 ------------------------------------------------------------------------------------------------------------------------------------ Washington - 17.7% (10.9% of Total Investments) 5,000 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 5,019,850 Consolidated System Revenue Bonds, Series 2001B, 5.600%, 1/01/36 - MBIA Insured (Alternative Minimum Tax) 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 AA+ 12,583,404 12,785 5.000%, 12/01/20 - FGIC Insured 12/12 at 100.00 AA+ 13,319,797 Pierce County School District 343, Dieringer, Washington, General Obligation Refunding Bonds, Series 2003: 2,755 5.250%, 12/01/18 - FGIC Insured 6/13 at 100.00 Aa1 2,930,879 2,990 5.250%, 12/01/19 - FGIC Insured 6/13 at 100.00 Aa1 3,161,058
----- 46 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Washington (continued) $ 4,715 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 5.625%, 10/11 at 100.00 Aa2 $ 4,797,465 4/01/17 - FGIC Insured (Alternative Minimum Tax) 895 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 908,398 Terminal 18, Series 1999C, 6.000%, 9/01/29 - MBIA Insured (Alternative Minimum Tax) 1,265 Tacoma, Washington, General Obligation Bonds, Series 2002, 5.000%, 12/12 at 100.00 AA- 1,326,404 12/01/18 - FGIC Insured 5,000 Washington, General Obligation Bonds, Series 2001C, 5.250%, 1/01/26 - 1/11 at 100.00 AAA 5,165,450 FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 47,465 Total Washington 49,212,705 ------------------------------------------------------------------------------------------------------------------------------------ $ 487,645 Total Long-Term Investments (cost $433,446,220) - 159.5% 444,334,514 ============------------------------------------------------------------------------------------------------------------------------ Short-Term Investments - 2.2% (1.3% of Total Investments) 2,050 Detroit, Michigan, Sewage Disposal System Revenue Bonds, Series VMIG-1 2,050,000 2001D-2, Trust M3J, Variable Rate Demand Obligations, 5.450%, 7/01/32 - MBIA Insured (5) 2,000 Golden State Tobacco Securitization Corporation, California, VMIG-1 2,000,000 Tobacco Settlement Enhanced Revenue Bonds, Trust 1220, Variable Rate Demand Obligations, 6.000%, 6/01/35 - FGIC Insured (5) 2,000 Municipal Electric Authority of Georgia, General Resolution A-1+ 2,000,000 Projects Subordinated Bonds, Series 2000B, Variable Rate Demand Obligations, 2.560%, 1/01/20 - MBIA Insured (5) ------------------------------------------------------------------------------------------------------------------------------------ $ 6,050 Total Short-Term Investments (cost $6,050,000) 6,050,000 ============------------------------------------------------------------------------------------------------------------------------ Total Investments (cost $439,496,220) - 161.7% 450,384,514 --------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (6.2)% (17,315,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.3% 6,418,707 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (57.8)% (6) (161,000,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 278,488,221 =====================================================================================================================
As of April 30, 2008, all of the bonds in the Portfolio of Investments, excluding temporary investments in short-term municipal securities, are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments may reflect the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Investment has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. The rate disclosed is that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. (6) Preferred Shares, at Liquidation Value as a percentage of total investments is (35.7)%. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. ----- 47 ----- NPX | Nuveen Insured Premium Income Municipal Fund 2 | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Alabama - 4.2% (2.5% of Total Investments) $ 3,750 Huntsville Healthcare Authority, Alabama, Revenue Bonds, Series 6/15 at 100.00 AAA $ 3,805,688 2005A, 5.000%, 6/01/24 - MBIA Insured Jefferson County, Alabama, General Obligation Warrants, Series 2004A: 1,395 5.000%, 4/01/22 - MBIA Insured 4/14 at 100.00 AAA 1,331,625 1,040 5.000%, 4/01/23 - MBIA Insured 4/14 at 100.00 AAA 980,418 11,135 Limestone County Water and Sewer Authority, Alabama, Water Revenue 3/17 at 100.00 A- 9,781,318 Bonds, Series 2007, 4.500%, 12/01/37 - XLCA Insured 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 2,297,767 2,590 5.000%, 3/01/25 - FSA Insured 3/15 at 100.00 AAA 2,680,728 ------------------------------------------------------------------------------------------------------------------------------------ 22,130 Total Alabama 20,877,544 ------------------------------------------------------------------------------------------------------------------------------------ Arizona - 2.5% (1.5% of Total Investments) 12,365 Phoenix Civic Improvement Corporation, Arizona, Junior Lien Water 7/15 at 100.00 AA 12,521,665 System Revenue Bonds, Series 2005, 4.750%, 7/01/27 - MBIA Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ Arkansas - 3.0% (1.8% of Total Investments) 7,745 Arkansas Development Finance Authority, State Facility Revenue 6/14 at 100.00 AAA 8,095,771 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 2,056,980 2,000 5.000%, 11/01/28 - MBIA Insured 11/14 at 100.00 Aaa 2,050,160 2,480 University of Arkansas, Monticello Campus, Revenue Bonds, Series 12/13 at 100.00 Aaa 2,507,578 2005, 5.000%, 12/01/35 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 14,225 Total Arkansas 14,710,489 ------------------------------------------------------------------------------------------------------------------------------------ California - 28.3% (17.0% of Total Investments) 22,880 Alameda Corridor Transportation Authority, California, Senior Lien No Opt. Call AAA 5,967,562 Revenue Bonds, Series 1999A, 0.000%, 10/01/32 - MBIA Insured (UB) 2,000 California Department of Water Resources, Water System Revenue 12/14 at 100.00 AAA 2,070,200 Bonds, Central Valley Project, Series 2005AC, 5.000%, 12/01/24 - MBIA Insured 1,800 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aaa 1,839,078 Occidental College, Series 2005A, 5.000%, 10/01/33 - MBIA Insured 7,000 California Infrastructure Economic Development Bank, First Lien 1/28 at 100.00 AAA 7,476,980 Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A, 5.000%, 7/01/33 (Pre-refunded 1/01/28) - AMBAC Insured (UB) 31,200 Foothill/Eastern Transportation Corridor Agency, California, Toll 1/10 at 24.23 AAA 6,823,752 Road Revenue Refunding Bonds, Series 1999, 0.000%, 1/15/34 - MBIA Insured 1,735 Fullerton Public Financing Authority, California, Tax Allocation 9/15 at 100.00 AAA 1,751,864 Revenue Bonds, Series 2005, 5.000%, 9/01/27 - AMBAC Insured
----- 48 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ California (continued) $ 7,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A $ 6,738,480 Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/35 - FGIC Insured (UB) 1,870 Kern Community College District, California, General Obligation No Opt. Call AAA 867,418 Bonds, Series 2006, 0.000%, 11/01/23 - FSA Insured 6,520 Los Angeles Unified School District, California, General 7/15 at 100.00 AAA 6,810,922 Obligation Bonds, Series 2005E, 5.000%, 7/01/22 - AMBAC Insured 4,000 Los Angeles Unified School District, California, General 7/16 at 100.00 AA- 4,176,920 Obligation Bonds, Series 2006F, 5.000%, 7/01/24 - FGIC Insured 15,000 Orange County Sanitation District, California, Certificates of 8/13 at 100.00 AA(4) 16,638,149 Participation, Series 2003, 5.250%, 2/01/30 (Pre-refunded 8/01/13) - FGIC Insured 1,750 Orange County Water District, California, Revenue Certificates of 8/13 at 100.00 AAA 1,814,190 Participation, Series 2003B, 5.000%, 8/15/34 - MBIA Insured (ETM) 8,250 Orange County Water District, California, Revenue Certificates of 8/13 at 100.00 AAA 8,351,475 Participation, Series 2003B, 5.000%, 8/15/34 - MBIA Insured 1,000 Orange County Water District, California, Revenue Certificates of 2/15 at 100.00 AAA 1,036,020 Participation, Series 2005B, 5.000%, 8/15/24 - MBIA Insured 1,435 Pasadena Area Community College District, Los Angeles County, 6/13 at 100.00 AA-(4) 1,570,823 California, General Obligation Bonds, Series 2003A, 5.000%, 6/01/22 (Pre-refunded 6/01/13) - FGIC Insured 12,265 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 AAA 13,178,374 Improvement Revenue Bonds, Solid Waste and Redevelopment Projects, Series 1999, 5.800%, 12/01/19 (Pre-refunded 12/01/09) - AMBAC Insured 735 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 AAA 776,807 Improvement Revenue Bonds, Solid Waste and Redevelopment Projects, Series 1999, 5.800%, 12/01/19 - AMBAC Insured San Diego County, California, Certificates of Participation, Edgemoor Facility Project and Regional System, Series 2005: 1,675 5.000%, 2/01/24 - AMBAC Insured 2/15 at 100.00 AAA 1,735,032 720 5.000%, 2/01/25 - AMBAC Insured 2/15 at 100.00 AAA 743,681 14,170 San Diego Unified School District, San Diego County, California, 7/15 at 100.00 AAA 15,710,562 General Obligation Bonds, Series 2005G, 5.000%, 7/01/29 (Pre-refunded 7/01/15) - FSA Insured (UB) San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue Refunding Bonds, Series 1997A: 3,825 0.000%, 1/15/32 - MBIA Insured No Opt. Call AAA 924,579 26,900 0.000%, 1/15/34 - MBIA Insured No Opt. Call AAA 5,739,384 2,000 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/14 at 100.00 AAA 2,115,540 Merged Area Redevelopment Project, Series 2004A, 5.250%, 8/01/19 - MBIA Insured 7,845 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/17 at 100.00 AAA 7,218,185 Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30 - MBIA Insured (UB) 5,000 Torrance, California, Certificates of Participation, Series 2005B, No Opt. Call AAA 5,163,850 5.000%, 6/01/24 - AMBAC Insured 12,500 University of California, Revenue Bonds, Multi-Purpose Projects, 5/13 at 100.00 AAA 12,694,375 Series 2003A, 5.000%, 5/15/33 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 201,075 Total California 139,934,202 ------------------------------------------------------------------------------------------------------------------------------------ Colorado - 10.1% (6.0% of Total Investments) 1,940 Colorado Educational and Cultural Facilities Authority, Charter 6/13 at 100.00 A 1,982,408 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, Revenue 12/13 at 100.00 A 3,485,835 Bonds, Classical Academy Charter School, Series 2003, 5.250%, 12/01/23 - XLCA Insured
----- 49 ----- NPX | Nuveen Insured Premium Income Municipal Fund 2 (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Colorado (continued) $ 3,500 Colorado Health Facilities Authority, Revenue Bonds, Poudre Valley 12/09 at 101.00 Aaa $ 3,720,570 Healthcare Inc., Series 1999A, 5.750%, 12/01/23 (Pre-refunded 12/01/09) - FSA Insured 17,145 Denver Convention Center Hotel Authority, Colorado, Senior Revenue 12/13 at 100.00 A3(4) 18,572,149 Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/33 (Pre-refunded 12/01/13) - XLCA Insured 6,100 Denver School District 1, Colorado, General Obligation Bonds, 12/13 at 100.00 AAA 6,454,105 Series 2004, 5.000%, 12/01/18 - FSA Insured 12,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AAA 3,232,080 Series 2000B, 0.000%, 9/01/30 - MBIA Insured 1,325 El Paso County, Colorado, Certificates of Participation, Detention 12/12 at 100.00 AAA 1,350,480 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 2,607,150 5,125 5.000%, 12/15/23 - FSA Insured 12/14 at 100.00 AAA 5,320,673 2,000 5.000%, 12/15/24 - FSA Insured 12/14 at 100.00 AAA 2,068,220 1,000 University of Colorado, Enterprise System Revenue Bonds, Series 6/15 at 100.00 AA- 1,002,910 2005, 5.000%, 6/01/30 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 56,040 Total Colorado 49,796,580 ------------------------------------------------------------------------------------------------------------------------------------ District of Columbia - 0.2% (0.1% of Total Investments) 1,065 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 879,775 Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals 1606, 8.033%, 10/01/30 - AMBAC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ 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 4,159,240 Education Capital Outlay Bonds, Series 2003J, 5.000%, 6/01/22 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ Georgia - 4.0% (2.4% of Total Investments) 4,000 Cobb County Development Authority, Georgia, Parking Revenue Bonds, 7/14 at 100.00 Aaa 4,128,880 Kennesaw State University, Series 2004, 5.000%, 7/15/24 - MBIA Insured 2,925 Columbus, Georgia, Water and Sewerage Revenue Bonds, Series 2005, 5/14 at 100.00 AAA 2,999,646 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 1,840,586 2,580 5.000%, 11/01/22 - MBIA Insured 11/13 at 100.00 AAA 2,663,824 4,500 South Fulton Municipal Regional Water and Sewerage Authority, 1/13 at 100.00 Aaa 4,884,120 Georgia, Water and Sewerage Revenue Bonds, Series 2003, 5.000%, 1/01/33 (Pre-refunded 1/01/13) - MBIA Insured 3,000 Valdosta and Lowndes County Hospital Authority, Georgia, Revenue 10/12 at 101.00 AAA 3,081,030 Certificates, South Georgia Medical Center, Series 2002, 5.200%, 10/01/22 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 18,780 Total Georgia 19,598,086 ------------------------------------------------------------------------------------------------------------------------------------ Hawaii - 7.9% (4.7% of Total Investments) 2,375 Hawaii County, Hawaii, General Obligation Bonds, Series 2003A, 7/13 at 100.00 AAA 2,500,923 5.000%, 7/15/19 - FSA Insured 20,000 Hawaii Department of Budget and Finance, Special Purpose Revenue 7/10 at 101.00 AAA 20,354,196 Refunding Bonds, Hawaiian Electric Company Inc., Series 2000, 5.700%, 7/01/20 - AMBAC Insured (Alternative Minimum Tax) Hawaii Department of Transportation, Airport System Revenue Refunding Bonds, Series 2000B: 6,105 6.100%, 7/01/16 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 A2 6,301,520 9,500 6.625%, 7/01/17 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 A2 9,879,240 ------------------------------------------------------------------------------------------------------------------------------------ 37,980 Total Hawaii 39,035,879 ------------------------------------------------------------------------------------------------------------------------------------
----- 50 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Idaho - 0.1% (0.0% of Total Investments) $ 320 Idaho Housing and Finance Association, Single Family Mortgage 7/08 at 101.50 AAA $ 326,106 Bonds, Series 1998E, 5.450%, 7/01/18 - AMBAC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ Illinois - 3.2% (1.9% of Total Investments) 1,015 Chicago Park District, Illinois, Limited Tax General Obligation 7/11 at 100.00 Aaa 1,063,070 Park Bonds, Series 2001C, 5.500%, 1/01/18 - FGIC Insured Illinois Health Facilities Authority, Revenue Bonds, Lutheran General Health System, Series 1993A: 2,365 6.125%, 4/01/12 - FSA Insured (ETM) No Opt. Call AAA 2,529,178 5,000 6.250%, 4/01/18 - FSA Insured (ETM) No Opt. Call AAA 5,808,950 1,950 Illinois Health Facilities Authority, Revenue Refunding Bonds, SSM No Opt. Call AAA 2,306,694 Healthcare System, Series 1992AA, 6.550%, 6/01/14 - MBIA Insured (ETM) 4,000 Illinois Municipal Electric Agency, Power Supply System Revenue 2/17 at 100.00 A+ 3,907,400 Bonds, Series 2007A, 5.000%, 2/01/35 - FGIC Insured 185 Peoria, Moline and Freeport, Illinois, GNMA Collateralized Single 10/08 at 102.00 AAA 188,545 Family Mortgage Revenue Bonds, Series 1995A, 7.600%, 4/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 14,515 Total Illinois 15,803,837 ------------------------------------------------------------------------------------------------------------------------------------ Indiana - 1.7% (1.0% 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 2,177,896 2,215 5.000%, 8/01/24 - FSA Insured 8/14 at 100.00 AAA 2,283,156 3,730 Indiana Municipal Power Agency, Power Supply Revenue Bonds, Series 1/17 at 100.00 AAA 3,726,718 2007A, 5.000%, 1/01/42 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,050 Total Indiana 8,187,770 ------------------------------------------------------------------------------------------------------------------------------------ Kansas - 0.3% (0.2% of Total Investments) 1,500 Kansas Turnpike Authority, Revenue Bonds, Series 2004A-2, 5.000%, 9/14 at 101.00 AAA 1,559,745 9/01/27 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ Kentucky - 1.1% (0.7% of Total Investments) 6,010 Kentucky Economic Development Finance Authority, Health System No Opt. Call AAA 1,926,506 Revenue Bonds, Norton Healthcare Inc., Series 2000B, 0.000%, 10/01/28 - MBIA Insured 3,575 Kentucky Turnpike Authority, Economic Development Road Revenue 7/15 at 100.00 AAA 3,694,334 Bonds, Revitalization Project, Series 2005B, 5.000%, 7/01/25 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 9,585 Total Kentucky 5,620,840 ------------------------------------------------------------------------------------------------------------------------------------ Louisiana - 5.1% (3.1% of Total Investments) 4,455 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge 7/14 at 100.00 AAA 4,584,596 General Hospital, Series 2004, 5.250%, 7/01/24 - MBIA Insured Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2005A: 1,200 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AA- 1,222,704 2,210 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AA- 2,249,161 2,500 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AA- 2,539,850 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006: 1,320 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 1,305,229 10,890 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA- 10,317,295 3,375 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA- 3,197,509 ------------------------------------------------------------------------------------------------------------------------------------ 25,950 Total Louisiana 25,416,344 ------------------------------------------------------------------------------------------------------------------------------------
----- 51 ----- NPX | Nuveen Insured Premium Income Municipal Fund 2 (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Maryland - 0.9% (0.5% of Total Investments) $ 1,865 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 A- $ 1,788,572 Bonds, Series 2006A, 5.250%, 9/01/26 - XLCA Insured 2,580 Maryland Health and Higher Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 2,536,579 Bonds, Western Maryland Health, Series 2006A, 4.750%, 7/01/36 - MBIA Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ 4,445 Total Maryland 4,325,151 ------------------------------------------------------------------------------------------------------------------------------------ Massachusetts - 2.0% (1.2% of Total Investments) 3,000 Massachusetts Development Finance Authority, Revenue Bonds, WGBH No Opt. Call AAA 3,501,330 Educational Foundation, Series 2002A, 5.750%, 1/01/42 - AMBAC Insured 290 Massachusetts Port Authority, Special Facilities Revenue Bonds, 1/11 at 101.00 AAA 250,934 Delta Air Lines Inc., Series 2001A, 5.000%, 1/01/27 - AMBAC Insured (Alternative Minimum Tax) Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, Series 2004: 3,650 5.250%, 1/01/22 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A(4) 3,982,588 2,000 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A(4) 2,182,240 ------------------------------------------------------------------------------------------------------------------------------------ 8,940 Total Massachusetts 9,917,092 ------------------------------------------------------------------------------------------------------------------------------------ Michigan - 0.6% (0.4% of Total Investments) 3,170 Michigan Housing Development Authority, Rental Housing Revenue 10/08 at 101.00 AAA 3,204,173 Bonds, Series 1997A, 6.000%, 4/01/16 - AMBAC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ Minnesota - 0.2% (0.1% of Total Investments) 885 Minnesota Housing Finance Agency, Rental Housing Bonds, Series 8/08 at 100.00 AAA 887,407 1995D, 5.950%, 2/01/18 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ Missouri - 0.5% (0.3% of Total Investments) 1,000 Jackson County Reorganized School District R-7, Lees Summit, 3/16 at 100.00 Aaa 1,056,440 Missouri, General Obligation Bonds, Series 2006, 5.250%, 3/01/25 - MBIA Insured 495 Missouri Housing Development Commission, Multifamily Housing Revenue 6/08 at 101.00 AAA 498,287 Bonds, Brookstone Village Apartments, Series 1996A, 6.000%, 12/01/16 - FSA Insured (Alternative Minimum Tax) 750 Missouri Western State College, Auxiliary System Revenue Bonds, 10/13 at 100.00 AAA 755,633 Series 2003, 5.000%, 10/01/33 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 2,245 Total Missouri 2,310,360 ------------------------------------------------------------------------------------------------------------------------------------ Nebraska - 3.7% (2.2% 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 1,033,710 1,000 5.000%, 1/01/25 - FSA Insured 1/15 at 100.00 AAA 1,033,710 12,520 Nebraska Public Power District, Power Supply System Revenue Bonds, 1/16 at 100.00 A1 12,334,704 Series 2006A, 5.000%, 1/01/41 - FGIC Insured 3,875 Omaha Public Power District, Nebraska, Separate Electric System 2/17 at 100.00 AAA 3,835,514 Revenue Bonds, Nebraska City 2, Series 2006A, 5.000%, 2/01/49 - AMBAC Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ 18,395 Total Nebraska 18,237,638 ------------------------------------------------------------------------------------------------------------------------------------ Nevada - 2.9% (1.8% of Total Investments) 5,000 Clark County, Nevada, Industrial Development Revenue Bonds, 7/10 at 102.00 Aaa 4,922,150 Southwest Gas Corporation, Series 2000C, 5.950%, 12/01/38 - AMBAC Insured (Alternative Minimum Tax) 3,280 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, Series 7/14 at 100.00 Aa3 3,315,194 2004A-2, 5.125%, 7/01/24 - FGIC Insured
----- 52 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Nevada (continued) 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 $ 1,412,950 5,500 5.625%, 1/01/32 - AMBAC Insured 1/10 at 102.00 AAA 4,934,765 ------------------------------------------------------------------------------------------------------------------------------------ 18,780 Total Nevada 14,585,059 ------------------------------------------------------------------------------------------------------------------------------------ New Jersey - 4.9% (2.9% 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 2,111,720 2,250 5.125%, 10/01/22 - MBIA Insured 10/14 at 100.00 Aaa 2,355,525 1,560 Mount Olive Township Board of Education, Morris County, New Jersey, 1/15 at 100.00 Aaa 1,634,069 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 1,532,776 1,475 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 1,527,923 New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C: 25,000 0.000%, 12/15/35 - AMBAC Insured (UB) No Opt. Call AAA 5,820,750 10,000 0.000%, 12/15/36 - AMBAC Insured (UB) No Opt. Call AAA 2,200,100 3,075 New Jersey Transit Corporation, Certificates of Participation No Opt. Call AAA 3,439,634 Refunding, Series 2003, 5.500%, 10/01/15 - FSA Insured 3,315 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 5.000%, 1/15 at 100.00 AAA 3,430,627 1/01/25 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 50,150 Total New Jersey 24,053,124 ------------------------------------------------------------------------------------------------------------------------------------ New Mexico - 0.9% (0.5% of Total Investments) New Mexico Finance Authority, Public Project Revolving Fund Revenue Bonds, Series 2004C: 1,415 5.000%, 6/01/22 - AMBAC Insured 6/14 at 100.00 AAA 1,471,331 1,050 5.000%, 6/01/24 - AMBAC Insured 6/14 at 100.00 AAA 1,079,894 2,000 New Mexico Finance Authority, Public Project Revolving Fund Revenue 6/15 at 100.00 Aaa 2,071,380 Bonds, Series 2005E, 5.000%, 6/15/25 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,465 Total New Mexico 4,622,605 ------------------------------------------------------------------------------------------------------------------------------------ New York - 13.6% (8.2% of Total Investments) 1,120 Dormitory Authority of the State of New York, FHA-Insured Mortgage 2/15 at 100.00 Baa3 1,138,525 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 (Pre-refunded 7/01/09) - MBIA Insured 7/09 at 101.00 AAA 3,574,658 5,750 6.000%, 7/01/24 (Pre-refunded 7/01/09) - MBIA Insured 7/09 at 101.00 AAA 6,061,880 1,000 Dormitory Authority of the State of New York, State Personal Income 3/15 at 100.00 AAA 1,040,630 Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 - AMBAC Insured 120 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 95,856 Driver Trust 1649, 2006, 6.799%, 2/15/47 - MBIA Insured (IF) 3,705 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 3,456,432 Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB) 2,700 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 AAA 2,496,285 Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA Insured (UB)
----- 53 ----- NPX | Nuveen Insured Premium Income Municipal Fund 2 (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ New York (continued) Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2006A: $ 10,675 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 A- $ 10,938,459 5,000 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 A- 5,086,250 1,755 Nassau County, New York, General Obligation Improvement Bonds, 3/10 at 100.00 AAA 1,865,741 Series 2000E, 6.000%, 3/01/16 (Pre-refunded 3/01/10) - FSA Insured 7,500 Nassau Health Care Corporation, New York, County Guaranteed Revenue 8/09 at 102.00 AAA 7,976,850 Bonds, Series 1999, 5.750%, 8/01/29 (Pre-refunded 8/01/09) - FSA Insured 5,000 New York City, New York, General Obligation Bonds, Fiscal Series 11/14 at 100.00 AAA 5,254,600 2004E, 5.000%, 11/01/21 - FSA Insured 6,165 New York Convention Center Development Corporation, Hotel Unit Fee 11/15 at 100.00 AAA 6,170,980 Revenue Bonds, Series 2005, 5.000%, 11/15/44 - AMBAC Insured (UB) 8,495 New York State Housing Finance Agency, Mortgage Revenue Refunding 5/08 at 100.00 AAA 8,511,225 Bonds, Housing Project, Series 1996A, 6.125%, 11/01/20 - FSA Insured 3,770 New York State Thruway Authority, General Revenue Bonds, Series 7/15 at 100.00 AAA 3,921,667 2005G, 5.000%, 1/01/25 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 66,155 Total New York 67,590,038 ------------------------------------------------------------------------------------------------------------------------------------ North Carolina - 1.8% (1.1% of Total Investments) 1,250 Appalachian State University, North Carolina, Revenue Bonds, Series 7/15 at 100.00 Aaa 1,278,750 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 A 2,253,747 2,335 5.000%, 5/01/24 - FGIC Insured 5/14 at 100.00 A 2,357,883 2,900 Raleigh Durham Airport Authority, North Carolina, Airport Revenue 5/15 at 100.00 Aaa 2,979,257 Bonds, Series 2005A, 5.000%, 5/01/21 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,710 Total North Carolina 8,869,637 ------------------------------------------------------------------------------------------------------------------------------------ North Dakota - 3.9% (2.3% of Total Investments) 10,715 Fargo, North Dakota, Health System Revenue Bonds, MeritCare 6/10 at 101.00 AAA 11,238,856 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 8,158,960 5.850%, 12/01/25 - AMBAC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 18,715 Total North Dakota 19,397,816 ------------------------------------------------------------------------------------------------------------------------------------ Ohio - 1.6% (1.0% of Total Investments) 8,100 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series 2006, 12/16 at 100.00 Aaa 7,317,783 4.250%, 12/01/32 - AMBAC Insured (UB) 700 Shaker Heights, Ohio, General Obligation Bonds, Series 2003, 12/13 at 100.00 AAA 727,398 5.250%, 12/01/26 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,800 Total Ohio 8,045,181 ------------------------------------------------------------------------------------------------------------------------------------ Oklahoma - 0.3% (0.2% of Total Investments) 1,500 Oklahoma Capitol Improvement Authority, State Facilities Revenue 7/15 at 100.00 AAA 1,540,800 Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------
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Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Oregon - 3.3% (2.0% of Total Investments) $ 1,520 Portland Housing Authority, Oregon, Multifamily Housing Revenue 7/10 at 100.00 Aaa $ 1,533,042 Bonds, Lovejoy Station Apartments, Series 2000, 6.000%, 7/01/33 - MBIA Insured (Alternative Minimum Tax) Portland, Oregon, Airport Way Urban Renewal and Redevelopment Bonds, Series 2000A: 4,405 5.700%, 6/15/17 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 4,747,092 3,665 5.750%, 6/15/18 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 3,953,399 4,265 5.750%, 6/15/19 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 4,600,613 1,375 5.750%, 6/15/20 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 1,483,199 ------------------------------------------------------------------------------------------------------------------------------------ 15,230 Total Oregon 16,317,345 ------------------------------------------------------------------------------------------------------------------------------------ Pennsylvania - 12.6% (7.6% of Total Investments) 12,620 Allegheny County Hospital Development Authority, Pennsylvania, 11/10 at 102.00 AAA 14,035,837 Insured Revenue Bonds, West Penn Allegheny Health System, Series 2000A, 6.500%, 11/15/30 (Pre-refunded 11/15/10) - MBIA Insured 2,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage Revenue 12/15 at 100.00 AAA 2,054,540 Bonds, Series 2005A, 5.000%, 12/01/23 - MBIA Insured 9,485 Berks County Municipal Authority, Pennsylvania, Hospital Revenue 11/09 at 102.00 AAA 10,190,779 Bonds, Reading Hospital and Medical Center, Series 1999, 6.000%, 11/01/19 (Pre-refunded 11/01/09) - FSA Insured 4,235 Delaware County Authority, Pennsylvania, Revenue Bonds, Villanova 8/16 at 100.00 AAA 4,338,249 University, Series 2006, 5.000%, 8/01/24 - AMBAC Insured 5,780 Pennsylvania Higher Educational Facilities Authority, Revenue 5/15 at 100.00 AAA 5,861,788 Bonds, Drexel University, Series 2005A, 5.000%, 5/01/28 - MBIA Insured 4,585 Pennsylvania Public School Building Authority, Lease Revenue Bonds, 12/16 at 100.00 AAA 4,466,432 School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 - FSA Insured (UB) 1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 6/16 at 100.00 AAA 1,089,543 2006A, 5.000%, 12/01/26 - AMBAC Insured Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General Ordinance, Fifth Series 2004A-1: 5,235 5.000%, 9/01/24 - FSA Insured 9/14 at 100.00 AAA 5,363,100 3,000 5.000%, 9/01/25 - FSA Insured 9/14 at 100.00 AAA 3,073,410 2,360 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, 6/08 at 102.00 AAA 2,407,766 Series 1997A, 5.125%, 8/01/27 - AMBAC Insured (ETM) 3,785 Reading School District, Berks County, Pennsylvania, General 1/16 at 100.00 AAA 3,934,356 Obligation Bonds, Series 2005, 5.000%, 1/15/25 - FSA Insured 1,705 Solebury Township, Pennsylvania, General Obligation Bonds, Series 6/15 at 100.00 Aaa 1,763,737 2005, 5.000%, 12/15/25 - AMBAC Insured 3,650 State Public School Building Authority, Pennsylvania, Lease Revenue 6/13 at 100.00 AAA 3,972,113 Bonds, Philadelphia School District, Series 2003, 5.000%, 6/01/29 (Pre-refunded 6/01/13) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 59,490 Total Pennsylvania 62,551,650 ------------------------------------------------------------------------------------------------------------------------------------ Puerto Rico - 0.5% (0.3% of Total Investments) 2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/15 at 100.00 A3 2,482,275 2005RR, 5.000%, 7/01/22 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------
----- 55 ----- NPX | Nuveen Insured Premium Income Municipal Fund 2 (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ South Carolina - 0.4% (0.2% of Total Investments) $ 1,955 Greenville County School District, South Carolina, Installment 12/16 at 100.00 AAA $ 1,995,957 Purchase Revenue Bonds, Series 2006, 5.000%, 12/01/28 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ Texas - 16.9% (10.1% 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 10,210,700 9,000 5.125%, 11/01/20 - AMBAC Insured 11/08 at 102.00 AAA 9,240,660 Corpus Christi, Texas, Utility System Revenue Bonds, Series 2004: 3,475 5.000%, 7/15/22 - FSA Insured 7/14 at 100.00 AAA 3,608,023 3,645 5.000%, 7/15/23 - FSA Insured 7/14 at 100.00 AAA 3,770,461 3,335 Dallas, Texas, Waterworks and Sewer System Revenue Bonds, Series 10/17 at 100.00 Aaa 2,397,465 2007, Municipal Securities Trust Certificates Series 7053, 3.152%, 10/01/32 - AMBAC Insured (IF) 12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 A+ 12,239,750 Refunding and Improvement Bonds, Series 2001A, 5.500%, 11/01/35 - FGIC Insured (Alternative Minimum Tax) 5,000 Harris County Hospital District, Texas, Revenue Bonds, Series 2/17 at 100.00 AAA 5,078,750 2007A, 5.250%, 2/15/42 - MBIA Insured 4,485 Lower Colorado River Authority, Texas, Contract Revenue Refunding 5/12 at 100.00 AAA 4,654,668 Bonds, Transmission Services Corporation, Series 2003B, 5.000%, 5/15/21 - FSA Insured 10,000 Lower Colorado River Authority, Texas, Contract Revenue Refunding 5/13 at 100.00 AAA 10,030,700 Bonds, Transmission Services Corporation, Series 2003C, 5.000%, 5/15/33 - AMBAC Insured 4,151 Panhandle Regional Housing Finance Corporation, Texas, GNMA 7/12 at 105.00 Aaa 4,334,723 Collateralized Multifamily Housing Mortgage Revenue Bonds, Renaissance of Amarillo Apartments, Series 2001A, 6.650%, 7/20/42 Tarrant County Health Facilities Development Corporation, Texas, Hospital Revenue Bonds, Cook Children's Healthcare System, Series 2000A: 6,725 5.750%, 12/01/17 (Pre-refunded 12/01/10) - FSA Insured 12/10 at 101.00 AAA 7,322,718 1,170 5.750%, 12/01/24 (Pre-refunded 12/01/10) - FSA Insured 12/10 at 101.00 AAA 1,273,990 6,330 5.750%, 12/01/24 (Pre-refunded 12/01/10) - FSA Insured 12/10 at 101.00 AAA 6,892,610 2,300 Texas State University System, Financing Revenue Refunding Bonds, 3/12 at 100.00 AAA 2,394,691 Series 2002, 5.000%, 3/15/18 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 82,116 Total Texas 83,449,909 ------------------------------------------------------------------------------------------------------------------------------------ Utah - 2.3% (1.4% of Total Investments) 8,600 Intermountain Power Agency, Utah, Power Supply Revenue Refunding 7/13 at 100.00 AAA 9,065,346 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 2,389,508 Revenue Bonds, Series 2003, 5.000%, 12/15/33 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,985 Total Utah 11,454,854 ------------------------------------------------------------------------------------------------------------------------------------ Vermont - 0.2% (0.1% of Total Investments) 1,320 Vermont Educational and Health Buildings Financing Agency, Revenue 12/10 at 101.00 AAA 1,357,118 Bonds, Fletcher Allen Health Care Inc., Series 2000A, 6.000%, 12/01/23 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------
----- 56 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Virginia - 3.1% (1.9% of Total Investments) Greater Richmond Convention Center Authority, Virginia, Hotel Tax Revenue Bonds, Series 2005: $ 5,880 5.000%, 6/15/20 - MBIA Insured 6/15 at 100.00 AAA $ 6,136,250 5,000 5.000%, 6/15/22 - MBIA Insured 6/15 at 100.00 AAA 5,172,250 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 1,225,751 500 5.250%, 12/15/23 - FSA Insured 6/14 at 100.00 AAA 530,425 2,250 Virginia Housing Development Authority, Multifamily Housing Bonds, 7/08 at 102.00 AAA 2,288,678 Series 1997B, 6.050%, 5/01/17 - MBIA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 14,780 Total Virginia 15,353,354 ------------------------------------------------------------------------------------------------------------------------------------ Washington - 7.1% (4.3% of Total Investments) 10,000 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 10,039,700 Consolidated System Revenue Bonds, Series 2001B, 5.600%, 1/01/36 - MBIA Insured (Alternative Minimum Tax) 1,370 Clark County School District 101, La Center, Washington, General 12/12 at 100.00 Aaa 1,432,678 Obligation Bonds, Series 2002, 5.000%, 12/01/22 - FSA Insured 5,230 Douglas County Public Utility District 1, Washington, Revenue 9/09 at 102.00 AAA 5,340,510 Bonds, Wells Hydroelectric, Series 1999A, 6.125%, 9/01/29 - MBIA Insured (Alternative Minimum Tax) 1,545 Tacoma, Washington, General Obligation Bonds, Series 2004, 5.000%, 12/14 at 100.00 AAA 1,632,895 12/01/19 - MBIA Insured 3,950 Washington State Healthcare Facilities Authority, Revenue Bonds, 11/08 at 101.00 Aaa 4,015,570 Swedish Health Services, Series 1998, 5.125%, 11/15/22 - AMBAC Insured 6,200 Washington State, General Obligation Purpose Bonds, Series 2003A, 7/12 at 100.00 AA+ 6,446,450 5.000%, 7/01/20 - FGIC Insured 10,855 Washington, General Obligation Bonds, Series 2000S-5, 0.000%, No Opt. Call AA+ 6,283,634 1/01/20 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 39,150 Total Washington 35,191,437 ------------------------------------------------------------------------------------------------------------------------------------ West Virginia - 1.6% (1.0% of Total Investments) 8,000 Pleasants County, West Virginia, Pollution Control Revenue Bonds, 5/08 at 100.00 AAA 8,022,400 Monongahela Power Company Pleasants Station Project, Series 1995C, 6.150%, 5/01/15 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ Wisconsin - 6.3% (3.8% of Total Investments) 7,000 La Crosse, Wisconsin, Resource Recovery Revenue Refunding Bonds, No Opt. Call AAA 7,527,870 Northern States Power Company Project, Series 1996, 6.000%, 11/01/21 - MBIA Insured (Alternative Minimum Tax) 12,750 Milwaukee County, Wisconsin, Airport Revenue Bonds, Series 2000A, 12/10 at 100.00 A1 12,855,698 5.750%, 12/01/25 - FGIC Insured (Alternative Minimum Tax) 6,250 Wisconsin Health and Educational Facilities Authority, Revenue 8/08 at 100.00 AAA 6,282,938 Bonds, Sinai Samaritan Medical Center Inc., Series 1996, 5.750%, 8/15/16 - MBIA Insured 4,225 Wisconsin State, General Obligation Bonds, Series 2006A, 4.750%, 5/16 at 100.00 AA- 4,306,713 5/01/25 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 30,225 Total Wisconsin 30,973,219 ------------------------------------------------------------------------------------------------------------------------------------ $ 908,686 Total Long-Term Investments (cost $806,516,531) - 164.6% 815,163,701 ============------------------------------------------------------------------------------------------------------------------------
----- 57 ----- NPX | Nuveen Insured Premium Income Municipal Fund 2 (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Amount (000) Description (1) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Short-Term Investments - 1.9% (1.2% of Total Investments) $ 7,015 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, ROCS VMIG-1 $ 7,015,000 660, Variable Rate Demand Obligations, 4.010%, 5/01/34 - FGIC Insured (5) 1,000 Massachusetts Turnpike Authority, Metropolitan Highway System A-1+ 1,000,000 Revenue Bonds, Senior Series 1997A, Trust 489, Variable Rate Demand Obligations, 6.00%, 1/01/37 - MBIA Insured (5) 1,500 New York State Thruway Authority, Highway and Bridge Trust Fund VMIG-1 1,500,000 Bonds, Second General, Series 2003A, Trust M1J-Reg D, Variable Rate Demand Obligations 5.450, 4/01/15 - MBIA Insured (5) ------------------------------------------------------------------------------------------------------------------------------------ $ 9,515 Total Short-Term Investments (cost $9,515,000) 9,515,000 ============------------------------------------------------------------------------------------------------------------------------ Total Investments (cost $816,031,531) - 166.5% 824,678,701 --------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (15.6)% (77,080,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.4% 16,490,286 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (54.3)% (6) (268,900,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 495,188,987 =====================================================================================================================
As of April 30, 2008, all of the bonds in the Portfolio of Investments, excluding temporary investments in short-term municipal securities, are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments may reflect the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Investment has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. The rate disclosed is that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. (6) Preferred Shares, at Liquidation Value as a percentage of total investments is (32.6)%. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. ----- 58 ----- NVG | Nuveen Insured Dividend Advantage Municipal Fund | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Long-Term Municipal Bonds - 156.7% (99.2% of Total Investments) Alabama - 4.3% (2.7% of Total Investments) $ 5,310 Athens, Alabama, Water and Sewerage Revenue Warrants, Series 2002, 5/12 at 101.00 AAA $ 5,450,556 5.300%, 5/01/32 - MBIA Insured 3,045 Hoover, Alabama, General Obligation Bonds, Series 2003, 5.000%, 3/12 at 101.00 AAA 3,181,081 3/01/20 - MBIA Insured 10,000 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101.00 AAA 10,338,000 Warrants, Series 1999A, 5.375%, 2/01/36 (Pre-refunded 2/01/09) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 18,355 Total Alabama 18,969,637 ------------------------------------------------------------------------------------------------------------------------------------ Alaska - 3.7% (2.4% of Total Investments) 15,000 Alaska, International Airport System Revenue Bonds, Series 2002B, 10/12 at 100.00 AAA 16,403,099 5.250%, 10/01/27 (Pre-refunded 10/01/12) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ Arizona - 2.2% (1.4% of Total Investments) 5,000 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/12 at 100.00 AA- 4,827,100 Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 - FGIC Insured (Alternative Minimum Tax) 6,000 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic Plaza, No Opt. Call AA 4,656,300 Series 2005B, 0.000%, 7/01/37 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 11,000 Total Arizona 9,483,400 ------------------------------------------------------------------------------------------------------------------------------------ California - 18.6% (11.8% of Total Investments) 2,000 Alameda Corridor Transportation Authority, California, Subordinate No Opt. Call AAA 1,079,160 Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/20 - AMBAC Insured 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 1,537,970 1,565 5.000%, 10/01/27 - MBIA Insured 10/15 at 100.00 Aaa 1,615,831 6,000 California Infrastructure Economic Development Bank, First Lien 1/28 at 100.00 Aaa 6,408,840 Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A, 5.000%, 7/01/33 (Pre-refunded 1/01/28) - AMBAC Insured (UB) California, General Obligation Bonds, Series 2000: 375 5.250%, 9/01/17 (Pre-refunded 9/01/10) - MBIA Insured 9/10 at 100.00 AAA 395,951 190 5.250%, 9/01/17 (Pre-refunded 9/01/10) - MBIA Insured 9/10 at 100.00 AAA 202,261 10,000 California, General Obligation Refunding Bonds, Series 2002, 2/12 at 100.00 AAA 10,170,200 5.000%, 2/01/23 - MBIA Insured 8,890 California, General Obligation Veterans Welfare Bonds, Series 12/08 at 101.00 AA- 9,036,152 1997BH, 5.400%, 12/01/14 (Alternative Minimum Tax) 3,000 California, General Obligation Veterans Welfare Bonds, Series 6/08 at 100.00 AAA 3,000,210 2001BZ, 5.375%, 12/01/24 - MBIA Insured (Alternative Minimum Tax) 2,425 Fullerton Public Financing Authority, California, Tax Allocation 9/15 at 100.00 AAA 2,448,571 Revenue Bonds, Series 2005, 5.000%, 9/01/27 - AMBAC Insured Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1: 1,000 5.750%, 6/01/47 6/17 at 100.00 BBB 897,890 365 5.125%, 6/01/47 6/17 at 100.00 BBB 295,398
----- 59 ----- NVG | Nuveen Insured Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ California (continued) $ 18,665 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A2 $ 17,967,676 Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/35 - FGIC Insured (UB) 1,990 Kern Community College District, California, General Obligation No Opt. Call AAA 821,134 Bonds, Series 2006, 0.000%, 11/01/25 - FSA Insured 7,935 Los Angeles, California, Certificates of Participation, Series 4/12 at 100.00 AAA 8,125,519 2002, 5.300%, 4/01/32 - AMBAC Insured 5,280 Northern California Power Agency, Revenue Refunding Bonds, 7/08 at 101.00 AAA 5,360,256 Hydroelectric Project 1, Series 1998A, 5.200%, 7/01/32 (Pre-refunded 7/01/08) - MBIA Insured 2,220 Northern California Power Agency, Revenue Refunding Bonds, 7/08 at 101.00 AAA 2,237,383 Hydroelectric Project 1, Series 1998A, 5.200%, 7/01/32 - MBIA Insured 2,320 Sacramento Municipal Utility District, California, Electric Revenue 8/11 at 100.00 AAA 2,449,433 Bonds, Series 2001P, 5.250%, 8/15/18 - FSA Insured 6,720 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/17 at 100.00 Aaa 6,183,072 Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30 - MBIA Insured (UB) 1,690 Ventura County Community College District, California, General 8/15 at 100.00 AAA 1,738,520 Obligation Bonds, Series 2005B, 5.000%, 8/01/28 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 84,115 Total California 81,971,427 ------------------------------------------------------------------------------------------------------------------------------------ Colorado - 5.6% (3.6% of Total Investments) 17,300 Adams County, Colorado, FHA-Insured Mortgage Revenue Bonds, Platte 8/15 at 100.00 AAA 17,732,153 Valley Medical Center, Series 2005, 5.000%, 8/01/24 - MBIA Insured 750 Arkansas River Power Authority, Colorado, Power Revenue Bonds, 10/16 at 100.00 A- 739,808 Series 2006, 5.250%, 10/01/32 - XLCA Insured 17,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AAA 6,384,180 Series 2000B, 0.000%, 9/01/25 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 35,050 Total Colorado 24,856,141 ------------------------------------------------------------------------------------------------------------------------------------ District of Columbia - 1.6% (1.0% of Total Investments) 6,805 District of Columbia, Revenue Bonds, Georgetown University, Series 4/17 at 100.00 AAA 6,153,285 2007A, 4.500%, 4/01/42 - AMBAC Insured 935 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 772,385 Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals 1606, 8.033%, 10/01/30 - AMBAC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ 7,740 Total District of Columbia 6,925,670 ------------------------------------------------------------------------------------------------------------------------------------ Florida - 11.6% (7.4% 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 2,482,785 1,480 5.250%, 12/01/18 - MBIA Insured 12/13 at 100.00 AAA 1,567,557 11,600 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 11,720,408 Revenue Bonds, Series 2002B, 5.125%, 10/01/21 - FSA Insured (Alternative Minimum Tax) 8,155 Lee County, Florida, Solid Waste System Revenue Refunding Bonds, 10/11 at 100.00 Aaa 8,467,826 Series 2001, 5.625%, 10/01/13 - MBIA Insured (Alternative Minimum Tax) Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2002: 7,165 5.625%, 10/01/15 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 A2 7,394,137 5,600 5.750%, 10/01/16 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 A2 5,775,616 10,000 5.125%, 10/01/21 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 A2 9,831,100 2,000 5.250%, 10/01/22 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 A2 1,983,940
----- 60 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Florida (continued) $ 1,000 South Miami Health Facilities Authority, Florida, Hospital Revenue, 8/17 at 100.00 AA- $ 975,890 Baptist Health System Obligation Group, Series 2007, 5.000%, 8/15/42 1,000 Tallahassee, Florida, Energy System Revenue Bonds, Series 2005, 10/15 at 100.00 AAA 1,024,230 5.000%, 10/01/28 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 50,305 Total Florida 51,223,489 ------------------------------------------------------------------------------------------------------------------------------------ Georgia - 2.2% (1.4% of Total Investments) 6,925 Atlanta and Fulton County Recreation Authority, Georgia, Guaranteed 12/15 at 100.00 AAA 7,091,546 Revenue Bonds, Park Improvement, Series 2005A, 5.000%, 12/01/30 - MBIA Insured 1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 2004, 11/14 at 100.00 AAA 1,039,340 5.000%, 11/01/22 - FSA Insured 1,695 Georgia Housing and Finance Authority, Single Family Mortgage 12/11 at 100.00 AAA 1,697,085 Bonds, Series 2002B-2, 5.500%, 6/01/32 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 9,620 Total Georgia 9,827,971 ------------------------------------------------------------------------------------------------------------------------------------ Idaho - 1.0% (0.6% of Total Investments) Idaho Housing and Finance Association, Grant and Revenue Anticipation Bonds, Federal Highway Trust Funds, Series 2006: 3,000 5.000%, 7/15/23 - MBIA Insured 7/16 at 100.00 Aaa 3,135,300 1,130 5.000%, 7/15/24 - MBIA Insured 7/16 at 100.00 Aaa 1,175,426 ------------------------------------------------------------------------------------------------------------------------------------ 4,130 Total Idaho 4,310,726 ------------------------------------------------------------------------------------------------------------------------------------ Illinois - 12.3% (7.8% of Total Investments) 10,000 Bolingbrook, Illinois, General Obligation Bonds, Series 2002A, 1/12 at 100.00 A2(4) 10,849,800 5.375%, 1/01/38 (Pre-refunded 1/01/12) - FGIC Insured 1,305 Chicago, Illinois, General Obligation Bonds, Series 2001A, 5.500%, 1/11 at 101.00 AAA 1,364,782 1/01/38 - MBIA Insured Chicago, Illinois, General Obligation Bonds, Series 2001A: 50 5.500%, 1/01/38 (Pre-refunded 1/01/11) - MBIA Insured 1/11 at 101.00 AAA 54,161 3,645 5.500%, 1/01/38 (Pre-refunded 1/01/11) - MBIA Insured 1/11 at 101.00 AAA 3,948,300 Chicago, Illinois, Second Lien Passenger Facility Charge Revenue Bonds, O'Hare International Airport, Series 2001C: 4,250 5.500%, 1/01/16 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,345,838 4,485 5.500%, 1/01/17 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,575,552 4,730 5.500%, 1/01/18 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,808,045 2,930 5.500%, 1/01/19 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 2,973,452 3,600 Chicago, Illinois, Third Lien General Airport Revenue Bonds, O'Hare 1/16 at 100.00 AAA 3,693,384 International Airport, Series 2005A, 5.250%, 1/01/24 - MBIA Insured 3,000 Chicago, Illinois, Third Lien General Airport Revenue Refunding 1/12 at 100.00 AAA 3,085,470 Bonds, O'Hare International Airport, Series 2002A, 5.750%, 1/01/17 - MBIA Insured (Alternative Minimum Tax) 4,000 Cicero, Cook County, Illinois, General Obligation Corporate Purpose 12/12 at 101.00 AAA 4,177,960 Bonds, Series 2002, 5.000%, 12/01/21 - MBIA Insured 730 DuPage County Community School District 200, Wheaton, Illinois, 10/13 at 100.00 Aaa 777,151 General Obligation Bonds, Series 2003C, 5.250%, 10/01/22 - FSA Insured 770 DuPage County Community School District 200, Wheaton, Illinois, 10/13 at 100.00 Aaa 853,607 General Obligation Bonds, Series 2003C, 5.250%, 10/01/22 (Pre-refunded 10/01/13) - FSA Insured 3,500 Illinois Municipal Electric Agency, Power Supply System Revenue 2/17 at 100.00 A+ 3,418,975 Bonds, Series 2007A, 5.000%, 2/01/35 - FGIC Insured 5,000 Illinois, General Obligation Bonds, Illinois FIRST Program, Series 4/12 at 100.00 AAA 5,252,250 2002, 5.250%, 4/01/23 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 51,995 Total Illinois 54,178,727 ------------------------------------------------------------------------------------------------------------------------------------
----- 61 ----- NVG | Nuveen Insured Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Indiana - 16.3% (10.3% of Total Investments) $ 3,380 Evansville, Indiana, Sewerage Works Revenue Refunding Bonds, Series 7/13 at 100.00 AAA $ 3,506,682 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 (Pre-refunded 4/01/12) - AMBAC Insured 4/12 at 100.00 AAA 2,723,750 7,075 5.250%, 4/01/26 (Pre-refunded 4/01/12) - AMBAC Insured 4/12 at 100.00 AAA 7,675,668 7,000 5.250%, 4/01/30 (Pre-refunded 4/01/12) - AMBAC Insured 4/12 at 100.00 AAA 7,594,300 10,000 Indiana Health Facility Financing Authority, Hospital Revenue 7/12 at 100.00 AAA 10,103,600 Bonds, Marion General Hospital, Series 2002, 5.250%, 7/01/32 - AMBAC Insured 3,200 Indiana Municipal Power Agency, Power Supply Revenue Bonds, Series 1/17 at 100.00 AAA 3,197,184 2007A, 5.000%, 1/01/42 - MBIA Insured 25,000 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 27,264,997 Waterworks Project, Series 2002A, 5.250%, 7/01/33 (Pre-refunded 7/01/12) - MBIA Insured Northern Wells Community School Building Corporation, Wells County, Indiana, First Mortgage Bonds, Series 2001: 420 5.250%, 1/15/19 (Pre-refunded 7/15/12) - FGIC Insured 7/12 at 100.00 AA(4) 458,384 430 5.250%, 7/15/19 (Pre-refunded 7/15/12) - FGIC Insured 7/12 at 100.00 AA(4) 469,298 1,675 5.400%, 7/15/23 (Pre-refunded 7/15/12) - FGIC Insured 7/12 at 100.00 AA(4) 1,837,961 6,960 Valparaiso Middle School Building Corporation, Indiana, First 1/13 at 100.00 AAA 7,156,272 Mortgage Refunding Bonds, Series 2002, 5.000%, 7/15/24 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 67,640 Total Indiana 71,988,096 ------------------------------------------------------------------------------------------------------------------------------------ Louisiana - 5.0% (3.1% of Total Investments) 10,000 Louisiana Public Facilities Authority, Revenue Bonds, Archdiocese 7/17 at 100.00 A+ 8,645,500 of New Orleans, Series 2007, 4.500%, 7/01/37 - CIFG Insured 1,500 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge 7/14 at 100.00 AAA 1,543,635 General Hospital, Series 2004, 5.250%, 7/01/24 - MBIA Insured Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006: 770 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 Aaa 761,384 6,240 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA- 5,911,838 2,030 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA- 1,923,242 3 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, Residuals 5/16 at 100.00 AA- 2,807 660-3, 5.082%, 5/01/41 - FGIC Insured (IF) 3,085 New Orleans, Louisiana, General Obligation Refunding Bonds, Series 9/12 at 100.00 AAA 3,108,014 2002, 5.125%, 9/01/21 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 23,628 Total Louisiana 21,896,420 ------------------------------------------------------------------------------------------------------------------------------------ Massachusetts - 0.2% (0.1% of Total Investments) 925 Massachusetts Water Resources Authority, General Revenue Bonds, 2/17 at 100.00 Aaa 728,771 Series 2007, Residual Trust 7039, 4.069%, 8/01/46 - FSA Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ Michigan - 0.3% (0.2% of Total Investments) 1,500 Michigan State Hospital Finance Authority, Revenue Bonds, Trinity 12/16 at 100.00 AA 1,495,815 Health Care Group, Series 2006A, 5.000%, 12/01/31 ------------------------------------------------------------------------------------------------------------------------------------ Missouri - 2.5% (1.6% of Total Investments) 1,600 St. Louis County Pattonville School District R3, Missouri, General 3/14 at 100.00 AAA 1,731,648 Obligation Bonds, Series 2004, 5.250%, 3/01/19 - FSA Insured 8,735 St. Louis, Missouri, Airport Revenue Bonds, Airport Development 7/11 at 100.00 AAA 9,386,282 Program, Series 2001A, 5.250%, 7/01/31 (Pre-refunded 7/01/11) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,335 Total Missouri 11,117,930 ------------------------------------------------------------------------------------------------------------------------------------
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Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Nebraska - 2.0% (1.2% of Total Investments) $ 6,360 Lincoln, Nebraska, Electric System Revenue Bonds, Series 2005, 9/15 at 100.00 AA $ 6,472,890 5.000%, 9/01/32 Municipal Energy Agency of Nebraska, Power Supply System Revenue Bonds, Series 2003A: 1,000 5.250%, 4/01/20 - FSA Insured 4/13 at 100.00 AAA 1,063,780 1,000 5.250%, 4/01/21 - FSA Insured 4/13 at 100.00 AAA 1,059,410 ------------------------------------------------------------------------------------------------------------------------------------ 8,360 Total Nebraska 8,596,080 ------------------------------------------------------------------------------------------------------------------------------------ Nevada - 2.1% (1.4% of Total Investments) 8,750 Truckee Meadows Water Authority, Nevada, Water Revenue Bonds, 7/11 at 100.00 AAA 9,410,625 Series 2001A, 5.250%, 7/01/34 (Pre-refunded 7/01/11) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ New Jersey - 0.5% (0.3% of Total Investments) 2,150 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 2,380,480 System Bonds, Series 2006A, 5.250%, 12/15/20 ------------------------------------------------------------------------------------------------------------------------------------ New York - 4.9% (3.1% of Total Investments) 1,120 Dormitory Authority of the State of New York, FHA-Insured Mortgage 2/15 at 100.00 Baa3 1,138,525 Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/23 - FGIC Insured 3,660 Dormitory Authority of the State of New York, Revenue Bonds, Mental 2/15 at 100.00 AAA 3,752,891 Health Services Facilities Improvements, Series 2005B, 5.000%, 2/15/23 - AMBAC Insured 3,130 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 Aaa 2,920,008 Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB) 2,400 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 Aaa 2,218,920 Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA Insured (UB) 1,500 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 AAA 1,518,765 Revenue Bonds, Series 2005B, 5.000%, 11/15/30 - AMBAC Insured 10,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 10,170,300 Revenue Refunding Bonds, Series 2002A, 5.000%, 11/15/30 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 21,810 Total New York 21,719,409 ------------------------------------------------------------------------------------------------------------------------------------ North Carolina - 0.5% (0.3% of Total Investments) 2,125 North Carolina Medical Care Commission, FHA-Insured Mortgage 10/13 at 100.00 AAA 2,260,809 Revenue Bonds, Betsy Johnson Regional Hospital Project, Series 2003, 5.375%, 10/01/24 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ Ohio - 0.6% (0.4% of Total Investments) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: 70 5.125%, 6/01/24 6/17 at 100.00 BBB 65,935 710 5.875%, 6/01/30 6/17 at 100.00 BBB 660,655 685 5.750%, 6/01/34 6/17 at 100.00 BBB 619,233 1,570 5.875%, 6/01/47 6/17 at 100.00 BBB 1,389,324 ------------------------------------------------------------------------------------------------------------------------------------ 3,035 Total Ohio 2,735,147 ------------------------------------------------------------------------------------------------------------------------------------ Oklahoma - 0.5% (0.3% of Total Investments) 2,000 Oklahoma Development Finance Authority, Revenue Bonds, Saint John 2/17 at 100.00 AA- 1,969,840 Health System, Series 2007, 5.000%, 2/15/37 ------------------------------------------------------------------------------------------------------------------------------------ Oregon - 1.5% (1.0% of Total Investments) Oregon, General Obligation Veterans Welfare Bonds, Series 82: 4,530 5.375%, 12/01/31 12/11 at 100.00 AA 4,576,070 2,115 5.500%, 12/01/42 12/11 at 100.00 AA 2,128,536 ------------------------------------------------------------------------------------------------------------------------------------ 6,645 Total Oregon 6,704,606 ------------------------------------------------------------------------------------------------------------------------------------
----- 63 ----- NVG | Nuveen Insured Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Pennsylvania - 3.5% (2.2% of Total Investments) $ 4,500 Allegheny County, Pennsylvania, Airport Revenue Refunding Bonds, No Opt. Call AAA $ 4,763,340 Pittsburgh International Airport, Series 1997A, 5.750%, 1/01/13 - MBIA Insured (Alternative Minimum Tax) 4,130 Pennsylvania Public School Building Authority, Lease Revenue Bonds, 12/16 at 100.00 Aaa 4,023,198 School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 - FSA Insured (UB) 1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 6/16 at 100.00 AAA 1,089,543 2006A, 5.000%, 12/01/26 - AMBAC Insured 2,000 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 2,139,020 Bonds, Series 2003B, 5.250%, 11/15/18 - FSA Insured 2,000 Reading School District, Berks County, Pennsylvania, General 1/16 at 100.00 AAA 2,135,400 Obligation Bonds, Series 2005, 5.000%, 1/15/19 - FSA Insured 1,000 State Public School Building Authority, Pennsylvania, Lease Revenue 6/13 at 100.00 AAA 1,088,250 Bonds, Philadelphia School District, Series 2003, 5.000%, 6/01/23 (Pre-refunded 6/01/13) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 14,680 Total Pennsylvania 15,238,751 ------------------------------------------------------------------------------------------------------------------------------------ Puerto Rico - 0.4% (0.3% of Total Investments) 1,225 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, 8/01/21 - No Opt. Call A+ 1,225,821 CIFG Insured 5,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call A+ 672,200 Bonds, Series 2007A, 0.000%, 8/01/42 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,225 Total Puerto Rico 1,898,021 ------------------------------------------------------------------------------------------------------------------------------------ South Carolina - 1.5% (0.9% of Total Investments) 1,950 Greenville County School District, South Carolina, Installment 12/16 at 100.00 AAA 1,990,853 Purchase Revenue Bonds, Series 2006, 5.000%, 12/01/28 - FSA Insured Greenville, South Carolina, Tax Increment Revenue Improvement Bonds, Series 2003: 1,000 5.500%, 4/01/17 - MBIA Insured 4/13 at 100.00 AAA 1,082,260 2,300 5.000%, 4/01/21 - MBIA Insured 4/13 at 100.00 AAA 2,360,881 1,000 Scago Educational Facilities Corporation, South Carolina, 10/15 at 100.00 AAA 1,051,680 Installment Purchase Revenue Bonds, Spartanburg County School District 5, Series 2005, 5.000%, 4/01/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,250 Total South Carolina 6,485,674 ------------------------------------------------------------------------------------------------------------------------------------ Tennessee - 9.9% (6.2% of Total Investments) Memphis, Tennessee, Sanitary Sewerage System Revenue Bonds, Series 2004: 1,495 5.000%, 10/01/19 - FSA Insured 10/14 at 100.00 AAA 1,591,218 1,455 5.000%, 10/01/20 - FSA Insured 10/14 at 100.00 AAA 1,537,455 1,955 5.000%, 10/01/21 - FSA Insured 10/14 at 100.00 AAA 2,051,909 10,000 Memphis-Shelby County Sports Authority, Tennessee, Revenue Bonds, 11/12 at 100.00 AAA 10,899,800 Memphis Arena, Series 2002A, 5.125%, 11/01/28 (Pre-refunded 11/01/12) - AMBAC Insured 10,000 Memphis-Shelby County Sports Authority, Tennessee, Revenue Bonds, 11/12 at 100.00 AAA 10,899,800 Memphis Arena, Series 2002B, 5.125%, 11/01/29 (Pre-refunded 11/01/12) - AMBAC Insured 15,195 Tennessee State School Bond Authority, Higher Educational 5/12 at 100.00 AAA 16,522,130 Facilities Second Program Bonds, Series 2002A, 5.250%, 5/01/32 (Pre-refunded 5/01/12) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 40,100 Total Tennessee 43,502,312 ------------------------------------------------------------------------------------------------------------------------------------
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Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Texas - 25.8% (16.3% of Total Investments) $ 3,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 A+ $ 3,619,945 Refunding and Improvement Bonds, Series 2001A, 5.750%, 11/01/13 - FGIC Insured (Alternative Minimum Tax) 10,000 Gainesville Hospital District, Texas, Limited Tax General 8/11 at 100.00 Aaa 10,120,800 Obligation Bonds, Series 2002, 5.375%, 8/15/32 - MBIA Insured 1,210 Galveston, Texas, General Obligation Bonds, Series 2001, 5.250%, 5/11 at 100.00 AAA 1,252,048 5/01/21 - AMBAC Insured Harris County Health Facilities Development Corporation, Texas, Thermal Utility Revenue Bonds, TECO Project, Series 2003: 2,240 5.000%, 11/15/16 - MBIA Insured 11/13 at 100.00 AAA 2,359,190 2,355 5.000%, 11/15/17 - MBIA Insured 11/13 at 100.00 AAA 2,464,531 13,000 Houston Area Water Corporation, Texas, Contract Revenue Bonds, 3/12 at 100.00 Baa3(4) 14,023,750 Northeast Water Purification Plant, Series 2002, 5.125%, 3/01/32 (Pre-refunded 3/01/12) - FGIC Insured 1,000 Houston, Texas, First Lien Combined Utility System Revenue Bonds, 5/14 at 100.00 AA 1,020,710 Series 2004A, 5.250%, 5/15/24 - FGIC Insured 4,345 San Antonio, Texas, Water System Senior Lien Revenue Refunding 5/12 at 100.00 AAA 4,693,426 Bonds, Series 2002, 5.500%, 5/15/17 - FSA Insured 5,875 Texas Department of Housing and Community Affairs, Residential 7/11 at 100.00 AAA 6,025,459 Mortgage Revenue Bonds, Series 2001A, 5.350%, 7/01/33 (Alternative Minimum Tax) 8,415 Texas Department of Housing and Community Affairs, Single Family 3/12 at 100.00 AAA 8,414,327 Mortgage Bonds, Series 2002B, 5.550%, 9/01/33 - MBIA Insured (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 3,606,874 3,520 5.125%, 11/01/21 - MBIA Insured 5/12 at 100.00 Aaa 3,592,653 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 9,603,980 11,665 5.500%, 1/01/33 - MBIA Insured 1/12 at 102.00 Aaa 11,771,385 5,000 Texas Water Development Board, Senior Lien State Revolving Fund 1/10 at 100.00 AAA 5,192,300 Revenue Bonds, Series 1999B, 5.250%, 7/15/17 9,145 Texas, General Obligation Bonds, Veterans Housing Assistance 6/12 at 100.00 Aa1 9,299,002 Program Fund II, Series 2002A-1, 5.250%, 12/01/22 (Alternative Minimum Tax) Williamson County, Texas, General Obligation Bonds, Series 2002: 3,000 5.250%, 2/15/22 (Pre-refunded 2/15/12) - FSA Insured 2/12 at 100.00 AAA 3,249,360 7,340 5.250%, 2/15/23 (Pre-refunded 2/15/12) - FSA Insured 2/12 at 100.00 AAA 7,950,101 5,000 5.250%, 2/15/25 (Pre-refunded 2/15/12) - FSA Insured 2/12 at 100.00 AAA 5,415,600 ------------------------------------------------------------------------------------------------------------------------------------ 109,530 Total Texas 113,675,441 ------------------------------------------------------------------------------------------------------------------------------------ Washington - 12.7% (8.0% of Total Investments) 5,385 Energy Northwest, Washington Public Power, Nine Canyon Wind Project 7/16 at 100.00 AAA 5,074,555 Revenue Bonds, Series 2006A, 4.500%, 7/01/30 - AMBAC Insured 6,600 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/12 at 100.00 AAA 7,004,514 Columbia Generating Station - Nuclear Project 2, Series 2002B, 5.350%, 7/01/18 - FSA Insured 7,675 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/12 at 100.00 AAA 8,251,393 Nuclear Project 1, Series 2002A, 5.500%, 7/01/15 - MBIA Insured
----- 65 ----- NVG | Nuveen Insured Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Washington (continued) $ 2,500 Port of Seattle, Washington, Revenue Refunding Bonds, Series 2002D, 11/12 at 100.00 Aa2 $ 2,592,900 5.750%, 11/01/15 - FGIC Insured (Alternative Minimum Tax) 2,200 Snohomish County School District 2, Everett, Washington, General 12/13 at 100.00 AAA 2,361,678 Obligation Bonds, Series 2003B, 5.000%, 6/01/17 - FSA Insured 3,255 Thurston and Pierce Counties School District, Washington, General 6/13 at 100.00 Aaa 3,528,908 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 2,146,120 4,325 5.125%, 6/01/22 - AMBAC Insured 6/12 at 100.00 Aaa 4,445,798 15,000 Washington State Healthcare Facilities Authority, Revenue Bonds, 8/13 at 102.00 AAA 15,080,849 Harrison Memorial Hospital, Series 1998, 5.000%, 8/15/28 - AMBAC Insured 5,170 Whitman County School District 267, Pullman, Washington, General 6/12 at 100.00 Aaa 5,411,542 Obligation Bonds, Series 2002, 5.000%, 12/01/20 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 54,110 Total Washington 55,898,257 ------------------------------------------------------------------------------------------------------------------------------------ Wisconsin - 2.9% (1.9% of Total Investments) 11,950 Wisconsin, Transportation Revenue Refunding Bonds, Series 2002-1, 7/12 at 100.00 AAA 12,974,473 5.125%, 7/01/18 (Pre-refunded 7/01/12) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 689,058 Total Long-Term Municipal Bonds (cost $669,216,925) 690,827,244 ============------------------------------------------------------------------------------------------------------------------------
Shares Description (1) Value ------------------------------------------------------------------------------------------------------------------------------------ Investment Companies - 0.4% (0.2% of Total Investments) 21,133 BlackRock MuniHoldings Fund Inc. 312,134 13,600 BlackRock MuniEnhanced Fund Inc. 139,672 7,920 Dreyfus Strategic Municipal Fund 69,458 7,600 Morgan Stanley Dean Witter Insured Municipal Income Trust 104,424 9,668 Morgan Stanley Quality Municipal Income Trust 122,010 26,280 PIMCO Municipal Income Fund II 369,234 9,500 Van Kampen Advantage Municipal Income Fund II 116,090 28,680 Van Kampen Investment Grade Municipal Trust 403,242 6,240 Van Kampen Municipal Trust 92,227 ------------------------------------------------------------------------------------------------------------------------------------ Total Investment Companies (cost $1,683,346) 1,728,491 --------------------------------------------------------------------------------------------------------------------- Total Long-Term Investments (cost $670,900,271) - 157.1% 692,555,735 ---------------------------------------------------------------------------------------------------------------------
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Principal Amount (000) Description (1) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Short-Term Investments - 0.9% (0.6% of Total Investments) $ 4,070 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, ROCS 660, Variable Rate VMIG-1 $ 4,070,000 Demand obligations, 4.010%, 5/01/41 - FGIC Insured (5) ============------------------------------------------------------------------------------------------------------------------------ Total Short-Term Investments (cost $4,070,000) 4,070,000 --------------------------------------------------------------------------------------------------------------------- Total Investments (cost $674,970,271) - 158.0% 696,625,735 --------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (7.9)% (34,933,334) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.7% 12,180,354 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (52.8)% (6) (233,000,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 440,872,755 =====================================================================================================================
As of April 30, 2008, at least 80% of the Fund's net assets (including net assets attributable to Preferred shares) are invested in municipal securities that are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance which ensures the timely payment of principal and interest. Up to 20% of the Fund's net assets (including net assets attributable to Preferred shares) may be invested in municipal securities that are (i) either backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities (also ensuring the timely payment of principal and interest), or (ii) rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, Standard & Poor's or Fitch) or unrated but judged to be of comparable quality by the Adviser. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments may reflect the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Investment has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. The rate disclosed is that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. (6) Preferred Shares, at Liquidation Value as a percentage of total investments is (33.4)%. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. ----- 67 ----- NEA | Nuveen Insured Tax-Free Advantage Municipal Fund | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Alabama - 8.7% (5.6% of Total Investments) $ 1,000 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 Aa1 $ 987,990 Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/36 5,655 Colbert County-Northwest Health Care Authority, Alabama, Revenue 6/13 at 101.00 Baa3 5,445,595 Bonds, Helen Keller Hospital, Series 2003, 5.750%, 6/01/27 3,100 Huntsville Healthcare Authority, Alabama, Revenue Bonds, Series 5/12 at 102.00 AAA 3,426,926 1998A, 5.400%, 6/01/22 (Pre-refunded 5/14/12) - MBIA Insured 6,280 Jefferson County, Alabama, Sewer Revenue Capital Improvement 8/12 at 100.00 AAA 6,797,284 Warrants, Series 2002D, 5.000%, 2/01/32 (Pre-refunded 8/01/12) - FGIC Insured 1,750 Montgomery, Alabama, General Obligation Warrants, Series 2003, 5/12 at 101.00 AAA 1,814,733 5.000%, 5/01/21 - AMBAC Insured 4,500 Sheffield, Alabama, Electric Revenue Bonds, Series 2003, 5.500%, 7/13 at 100.00 Aaa 4,633,830 7/01/29 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 22,285 Total Alabama 23,106,358 ------------------------------------------------------------------------------------------------------------------------------------ Arizona - 5.6% (3.6% of Total Investments) 10,000 Maricopa County Pollution Control Corporation, Arizona, Revenue 11/12 at 100.00 AAA 9,847,300 Bonds, Arizona Public Service Company - Palo Verde Project, Series 2002A, 5.050%, 5/01/29 - AMBAC Insured 6,545 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic Plaza, No Opt. Call AA 5,079,247 Series 2005B, 0.000%, 7/01/37 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 16,545 Total Arizona 14,926,547 ------------------------------------------------------------------------------------------------------------------------------------ California - 30.0% (19.2% of Total Investments) 26,300 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 26,523,809 Department of General Services, Capital East End Project, Series 2002A, 5.000%, 12/01/27 - AMBAC Insured 250 California State, General Obligation Bonds, Series 2002, 5.250%, 4/12 at 100.00 A1 254,590 4/01/30 - XLCA Insured 10,000 California State, General Obligation Bonds, Series 2002, 5.250%, 4/12 at 100.00 A1(4) 10,883,800 4/01/30 (Pre-refunded 4/01/12) - XLCA Insured 5 California State, General Obligation Bonds, Series 2004, 5.000%, 4/14 at 100.00 AAA 5,066 4/01/31 - AMBAC Insured 7,495 California State, General Obligation Bonds, Series 2004, 5.000%, 4/14 at 100.00 AAA 8,253,194 4/01/31 (Pre-refunded 4/01/14) - AMBAC Insured 2,910 Cathedral City Public Financing Authority, California, Tax 8/12 at 102.00 AAA 2,986,737 Allocation Bonds, Housing Set-Aside, Series 2002D, 5.000%, 8/01/26 - MBIA Insured 250 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 202,328 Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.125%, 6/01/47 8,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A 7,701,120 Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/35 - FGIC Insured (UB) 2,500 Irvine Public Facilities and Infrastructure Authority, 9/13 at 100.00 AAA 2,579,575 California, Assessment Revenue Bonds, Series 2003C, 5.000%, 9/02/23 - AMBAC Insured 4,000 Montara Sanitation District, California, General Obligation 8/11 at 101.00 A+ 4,027,240 Bonds, Series 2003, 5.000%, 8/01/28 - FGIC Insured
----- 68 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ California (continued) 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 $ 1,189,314 1,255 5.250%, 6/01/21 - AMBAC Insured 6/13 at 101.00 AAA 1,306,468 1,210 Redding Joint Powers Financing Authority, California, Lease 3/13 at 100.00 AAA 1,232,736 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 3,798,413 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 1,532,595 Obligation Bonds, Series 2003A, 5.000%, 5/01/28 - FSA Insured 1,055 Turlock Irrigation District, California, Certificates of 1/13 at 100.00 AAA 1,064,980 Participation, Series 2003A, 5.000%, 1/01/28 - MBIA Insured 6,300 University of California, Revenue Bonds, Multi-Purpose Projects, 5/13 at 100.00 AAA 6,397,965 Series 2003A, 5.000%, 5/15/33 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 77,910 Total California 79,939,930 ------------------------------------------------------------------------------------------------------------------------------------ Colorado - 5.7% (3.7% 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 4,657,889 3,750 5.500%, 12/01/28 - FSA Insured 12/13 at 100.00 AAA 3,994,950 1,450 Colorado Educational and Cultural Facilities Authority, Charter 8/14 at 100.00 A 1,483,379 School Revenue Bonds, Peak-to-Peak Charter School, Series 2004, 5.250%, 8/15/24 - XLCA Insured 3,750 Colorado Health Facilities Authority, Colorado, Revenue Bonds, 4/18 at 100.00 AAA 3,751,500 Catholic Health Initiatives, Series 2006C-1, Trust 1090, 11.524%, 10/01/41 - FSA Insured (IF) 3,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AAA 808,020 Series 2000B, 0.000%, 9/01/30 - MBIA Insured 2,900 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call AAA 611,262 Series 2004A, 0.000%, 9/01/34 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 19,150 Total Colorado 15,307,000 ------------------------------------------------------------------------------------------------------------------------------------ District of Columbia - 0.2% (0.1% of Total Investments) 665 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 549,343 Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals 1606, 8.033%, 10/01/30 - AMBAC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ Florida - 1.3% (0.8% of Total Investments) 3,000 Pinellas County Health Facilities Authority, Florida, Revenue 5/13 at 100.00 Aa3(4) 3,338,520 Bonds, Baycare Health System, Series 2003, 5.500%, 11/15/27 (Pre-refunded 5/15/13) ------------------------------------------------------------------------------------------------------------------------------------ Georgia - 2.1% (1.3% of Total Investments) 1,410 DeKalb County, Georgia, Water and Sewer Revenue Bonds, Series 10/16 at 100.00 AAA 1,448,944 2006A, 5.000%, 10/01/35 - FSA Insured 3,825 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales Tax 1/13 at 100.00 AAA 4,151,502 Revenue Bonds, Second Indenture Series 2002, 5.000%, 7/01/32 (Pre-refunded 1/01/13) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,235 Total Georgia 5,600,446 ------------------------------------------------------------------------------------------------------------------------------------ Illinois - 3.8% (2.4% of Total Investments) 905 Cook County School District 100, Berwyn South, Illinois, General 12/13 at 100.00 Aaa 1,005,889 Obligation Refunding Bonds, Series 2003B, 5.250%, 12/01/21 (Pre-refunded 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 3,473,822 2,940 5.125%, 12/01/23 - FSA Insured 12/14 at 100.00 Aaa 3,067,449
----- 69 ----- NEA | Nuveen Insured Tax-Free Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Illinois (continued) $ 2,500 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/13 at 100.00 A- $ 2,530,825 Hospital, Series 2003, 5.250%, 7/01/23 ------------------------------------------------------------------------------------------------------------------------------------ 9,630 Total Illinois 10,077,985 ------------------------------------------------------------------------------------------------------------------------------------ Indiana - 9.9% (6.3% of Total Investments) 2,500 Evansville, Indiana, Sewerage Works Revenue Refunding Bonds, 7/13 at 100.00 AAA 2,577,850 Series 2003A, 5.000%, 7/01/23 - AMBAC Insured 2,190 Indiana Bond Bank, Advance Purchase Funding Bonds, Common School 8/13 at 100.00 AAA 2,267,614 Fund, Series 2003B, 5.000%, 8/01/19 - MBIA Insured 1,860 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 AAA 1,858,363 Series 2007A, 5.000%, 1/01/42 - MBIA Insured 1,000 Indiana University, Student Fee Revenue Bonds, Series 2003O, 8/13 at 100.00 Aa1 1,038,730 5.000%, 8/01/22 - FGIC Insured IPS Multi-School Building Corporation, Indiana, First Mortgage Revenue Bonds, Series 2003: 11,020 5.000%, 7/15/19 (Pre-refunded 7/15/13) - MBIA Insured 7/13 at 100.00 AAA 12,043,758 6,000 5.000%, 7/15/20 (Pre-refunded 7/15/13) - MBIA Insured 7/13 at 100.00 AAA 6,557,400 ------------------------------------------------------------------------------------------------------------------------------------ 24,570 Total Indiana 26,343,715 ------------------------------------------------------------------------------------------------------------------------------------ Kansas - 2.5% (1.6% of Total Investments) 6,250 Kansas Development Finance Authority, Board of Regents, Revenue 4/13 at 102.00 AAA 6,580,375 Bonds, Scientific Research and Development Facilities Projects, Series 2003C, 5.000%, 10/01/22 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ Kentucky - 0.4% (0.3% of Total Investments) 985 Kentucky State Property and Buildings Commission, Revenue 8/13 at 100.00 AAA 1,077,176 Refunding Bonds, Project 77, Series 2003, 5.000%, 8/01/23 (Pre-refunded 8/01/13) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ Louisiana - 2.1% (1.4% of Total Investments) 5,785 New Orleans, Louisiana, General Obligation Refunding Bonds, 12/12 at 100.00 Baa3 5,652,466 Series 2002, 5.300%, 12/01/27 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ Massachusetts - 2.9% (1.8% of Total Investments) 6,000 Massachusetts Bay Transportation Authority, Senior Sales Tax 7/12 at 100.00 AAA 6,485,100 Revenue Refunding Bonds, Series 2002A, 5.000%, 7/01/27 (Pre-refunded 7/01/12) - FGIC Insured 1,125 Massachusetts Development Finance Authority, Revenue Bonds, 9/13 at 100.00 A1 1,152,596 Middlesex School, Series 2003, 5.125%, 9/01/23 ------------------------------------------------------------------------------------------------------------------------------------ 7,125 Total Massachusetts 7,637,696 ------------------------------------------------------------------------------------------------------------------------------------ Michigan - 11.8% (7.6% of Total Investments) 6,130 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, 7/13 at 100.00 AAA 6,692,857 Series 2003A, 5.000%, 7/01/23 (Pre-refunded 7/01/13) - MBIA Insured 4,465 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/13 at 100.00 AAA 4,601,986 Refunding Bonds, Series 2003C, 5.000%, 7/01/22 - MBIA Insured 1,000 Michigan State Hospital Finance Authority, Revenue Bonds, Trinity 12/16 at 100.00 AA 997,210 Health Care Group, Series 2006A, 5.000%, 12/01/31 10,800 Michigan Strategic Fund, Limited Obligation Resource Recovery 12/12 at 100.00 A- 10,214,856 Revenue Refunding Bonds, Detroit Edison Company, Series 2002D, 5.250%, 12/15/32 - XLCA Insured 2,250 Romulus Community Schools, Wayne County, Michigan, General 5/11 at 100.00 AA- 2,333,993 Obligation Refunding Bonds, Series 2001, 5.250%, 5/01/25 6,500 Wayne County, Michigan, Limited Tax General Obligation Airport 12/11 at 101.00 AAA 6,552,650 Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.000%, 12/01/30 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 31,145 Total Michigan 31,393,552 ------------------------------------------------------------------------------------------------------------------------------------
----- 70 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Missouri - 1.2% (0.7% of Total Investments) $ 240 Clay County Public School District 53, Liberty, Missouri, General 3/14 at 100.00 AAA $ 252,794 Obligation Bonds, Series 2004, 5.250%, 3/01/24 - FSA Insured 215 Clay County Public School District 53, Liberty, Missouri, General 3/14 at 100.00 AAA 227,625 Obligation Bonds, Series 2004, 5.250%, 3/01/23 - FSA Insured Clay County Public School District 53, Liberty, Missouri, General Obligation Bonds, Series 2004: 1,110 5.250%, 3/01/23 (Pre-refunded 3/01/14) - FSA Insured 3/14 at 100.00 AAA 1,231,334 1,260 5.250%, 3/01/24 (Pre-refunded 3/01/14) - FSA Insured 3/14 at 100.00 AAA 1,397,731 ------------------------------------------------------------------------------------------------------------------------------------ 2,825 Total Missouri 3,109,484 ------------------------------------------------------------------------------------------------------------------------------------ Nebraska - 1.9% (1.2% of Total Investments) 5,000 Lincoln, Nebraska, Sanitary Sewerage System Revenue Refunding 6/13 at 100.00 AAA 5,106,150 Bonds, Series 2003, 5.000%, 6/15/28 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ New Mexico - 0.8% (0.5% of Total Investments) 1,975 New Mexico State University, Revenue Bonds, Series 2004, 5.000%, 4/14 at 100.00 AAA 2,094,033 4/01/19 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ New York - 10.9% (7.0% of Total Investments) 20 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 Aaa 15,976 Driver Trust 1649, 2006, 6.799%, 2/15/47 - MBIA Insured (IF) 1,960 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 Aaa 1,828,504 Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB) 25,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 25,242,000 Revenue Refunding Bonds, Series 2002F, 5.000%, 11/15/31 - MBIA Insured 1,850 New York State Urban Development Corporation, Service Contract 3/15 at 100.00 AAA 1,921,817 Revenue Bonds, Series 2005B, 5.000%, 3/15/25 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 28,830 Total New York 29,008,297 ------------------------------------------------------------------------------------------------------------------------------------ North Carolina - 3.2% (2.1% of Total Investments) 8,700 North Carolina Medical Care Commission, Revenue Bonds, Maria 10/13 at 100.00 AA 8,539,920 Parham Medical Center, Series 2003, 5.375%, 10/01/33 - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ Ohio - 1.0% (0.7% of Total Investments) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: 70 5.125%, 6/01/24 6/17 at 100.00 BBB 65,935 710 5.875%, 6/01/30 6/17 at 100.00 BBB 660,655 685 5.750%, 6/01/34 6/17 at 100.00 BBB 619,233 1,570 5.875%, 6/01/47 6/17 at 100.00 BBB 1,389,324 ------------------------------------------------------------------------------------------------------------------------------------ 3,035 Total Ohio 2,735,147 ------------------------------------------------------------------------------------------------------------------------------------ Oklahoma - 0.4% (0.2% of Total Investments) 1,000 Oklahoma Capitol Improvement Authority, State Facilities Revenue 7/15 at 100.00 AAA 1,027,200 Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ Oregon - 3.1% (2.0% of Total Investments) 8,350 Oregon Health Sciences University, Revenue Bonds, Series 2002A, 1/13 at 100.00 AAA 8,366,617 5.000%, 7/01/32 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ Pennsylvania - 7.6% (4.9% of Total Investments) 3,000 Lehigh County General Purpose Authority, Pennsylvania, Hospital 8/13 at 100.00 AAA 3,323,340 Revenue Bonds, St. Luke's Hospital of Bethlehem, Series 2003, 5.375%, 8/15/33 (Pre-refunded 8/15/13) 2,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 8/13 at 100.00 AAA 2,021,000 Ordinance, Fourth Series 1998, 5.000%, 8/01/32 - FSA Insured
----- 71 ----- NEA | Nuveen Insured Tax-Free Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ Pennsylvania (continued) $ 925 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, 6/08 at 102.00 AAA $ 943,722 Series 1997A, 5.125%, 8/01/27 - AMBAC Insured (ETM) 13,000 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 14,185,600 Revenue Bonds, Philadelphia School District, Series 2003, 5.000%, 6/01/33 (Pre-refunded 6/01/13) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 18,925 Total Pennsylvania 20,473,662 ------------------------------------------------------------------------------------------------------------------------------------ Puerto Rico - 0.5% (0.3% of Total Investments) 10,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call AAA 1,397,900 Bonds, Series 2007A, 0.000%, 8/01/43 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ South Carolina - 7.3% (4.7% of Total Investments) 5,000 Florence County, South Carolina, Hospital Revenue Bonds, McLeod 11/14 at 100.00 AAA 5,189,400 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- 3,067,290 1,785 5.000%, 12/01/23 12/13 at 100.00 AA- 1,818,861 1,365 Myrtle Beach, South Carolina, Water and Sewerage System Revenue 3/13 at 100.00 Baa3(4) 1,507,602 Refunding Bonds, Series 2003, 5.375%, 3/01/19 (Pre-refunded 3/01/13) - FGIC Insured 8,000 South Carolina Transportation Infrastructure Bank, Revenue Bonds, 10/12 at 100.00 Aaa 8,040,560 Series 2002A, 5.000%, 10/01/33 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 19,150 Total South Carolina 19,623,713 ------------------------------------------------------------------------------------------------------------------------------------ Texas - 13.4% (8.6% of Total Investments) 7,975 Fort Bend Independent School District, Fort Bend County, Texas, 8/10 at 100.00 AAA 8,118,630 General Obligation Bonds, Series 2000, 5.000%, 8/15/25 12,500 Grand Prairie Independent School District, Dallas County, Texas, 2/13 at 100.00 AAA 13,658,125 General Obligation Bonds, Series 2003, 5.125%, 2/15/31 (Pre-refunded 2/15/13) - FSA Insured 2,000 Houston, Texas, First Lien Combined Utility System Revenue Bonds, 5/14 at 100.00 AAA 2,077,460 Series 2004A, 5.250%, 5/15/25 - MBIA Insured 5,515 Houston, Texas, General Obligation Refunding Bonds, Series 2002, 3/12 at 100.00 AAA 5,760,583 5.250%, 3/01/20 - MBIA Insured 465 Katy Independent School District, Harris, Fort Bend and Waller 2/12 at 100.00 AAA 486,455 Counties, Texas, General Obligation Bonds, Series 2002A, 5.125%, 2/15/18 5,385 Katy Independent School District, Harris, Fort Bend and Waller 2/12 at 100.00 AAA 5,808,638 Counties, Texas, General Obligation Bonds, Series 2002A, 5.125%, 2/15/18 (Pre-refunded 2/15/12) ------------------------------------------------------------------------------------------------------------------------------------ 33,840 Total Texas 35,909,891 ------------------------------------------------------------------------------------------------------------------------------------ Virginia - 0.6% (0.4% of Total Investments) 1,500 Hampton, Virginia, Revenue Bonds, Convention Center Project, 1/13 at 100.00 AAA 1,519,590 Series 2002, 5.125%, 1/15/28 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ Washington - 9.2% (5.9% of Total Investments) 4,945 Broadway Office Properties, King County, Washington, Lease Revenue 12/12 at 100.00 AAA 5,017,593 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 5,333,843 Consolidated System Revenue Bonds, Series 2002C, 5.125%, 7/01/33 - AMBAC Insured 2,135 Kitsap County Consolidated Housing Authority, Washington, Revenue 7/13 at 100.00 Aaa 2,169,822 Bonds, Bremerton Government Center, Series 2003, 5.000%, 7/01/23 - MBIA Insured 1,935 Pierce County School District 343, Dieringer, Washington, General 6/13 at 100.00 Aa1 2,072,637 Obligation Refunding Bonds, Series 2003, 5.250%, 12/01/17 - FGIC Insured 9,670 Washington State, General Obligation Bonds, Series 2003D, 5.000%, 6/13 at 100.00 AAA 10,074,593 12/01/21 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 23,935 Total Washington 24,668,488 ------------------------------------------------------------------------------------------------------------------------------------
----- 72 -----
Principal Optional Call Amount (000) Description (1) Provisions (2) Ratings (3) Value ------------------------------------------------------------------------------------------------------------------------------------ West Virginia - 1.2% (0.8% of Total Investments) $ 3,000 West Virginia State Building Commission, Lease Revenue Refunding No Opt. Call AAA $ 3,288,240 Bonds, Regional Jail and Corrections Facility, Series 1998A, 5.375%, 7/01/21 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ Wisconsin - 6.7% (4.3% of Total Investments) 1,190 Sun Prairie Area School District, Dane County, Wisconsin, General 3/14 at 100.00 Aaa 1,297,243 Obligation Bonds, Series 2004C, 5.250%, 3/01/24 - FSA Insured 4,605 Wisconsin Health and Educational Facilities Authority, Revenue 9/13 at 100.00 BBB+(4) 5,205,124 Bonds, Franciscan Sisters of Christian Charity Healthcare Ministry, Series 2003A, 5.875%, 9/01/33 (Pre-refunded 9/01/13) 3,000 Wisconsin Health and Educational Facilities Authority, Revenue No Opt. Call A1 3,376,050 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- 3,048,048 Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.125%, 8/15/33 4,750 Wisconsin Health and Educational Facilities Authority, Revenue 8/08 at 102.00 AAA 4,863,335 Refunding Bonds, Wausau Hospital Inc., Series 1998A, 5.125%, 8/15/20 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 17,145 Total Wisconsin 17,789,800 ------------------------------------------------------------------------------------------------------------------------------------ $ 417,490 Total Investments (cost $404,151,934) - 156.0% 416,189,241 ============------------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (2.7)% (7,305,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.7% 1,923,504 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (54.0)% (5) (144,000,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 266,807,745 =====================================================================================================================
As of April 30, 2008, at least 80% of the Fund's net assets (including net assets attributable to Preferred shares) are invested in municipal securities that are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance which ensures the timely payment of principal and interest. Up to 20% of the Fund's net assets (including net assets attributable to Preferred shares) may be invested in municipal securities that are (i) either backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities (also ensuring the timely payment of principal and interest), or (ii) rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, Standard & Poor's or Fitch) or unrated but judged to be of comparable quality by the Adviser. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments may reflect the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of total investments is (34.6)%. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. ----- 73 ----- | Statement of | ASSETS & LIABILITIES April 30, 2008 (Unaudited)
Insured Insured Insured Insured Premier Insured Dividend Tax-Free Quality Opportunity Insured Income Premium Income 2 Advantage Advantage (NQI) (NIO) (NIF) (NPX) (NVG) (NEA) ----------------------------------------------------------------------------------------------------------------------------------- Assets Investments, at value (cost $902,795,390, $1,872,430,928, $439,496,220, $816,031,531, $674,970,271 and $404,151,934, respectively) $ 913,124,801 $ 1,923,926,313 $ 450,384,514 $ 824,678,701 $ 696,625,735 $ 416,189,241 Cash 5,866,174 13,262,600 2,964,544 4,740,187 4,462,926 540,016 Receivables: Dividends and Interest 12,269,913 28,953,601 7,053,305 13,960,990 9,776,919 6,433,983 Investments sold -- -- 170,000 15,095 -- -- Other assets 76,556 207,028 41,610 83,830 35,349 35,642 ----------------------------------------------------------------------------------------------------------------------------------- Total assets 931,337,444 1,966,349,542 460,613,973 843,478,803 710,900,929 423,198,882 ----------------------------------------------------------------------------------------------------------------------------------- Liabilities Floating rate obligations 67,386,650 101,853,333 17,315,000 77,080,000 34,933,334 7,305,000 Payable for investments purchased -- -- 2,503,833 -- -- 3,755,750 Accrued expenses: Management fees 431,136 911,651 223,906 383,776 229,173 128,724 Other 225,001 473,063 114,530 123,851 143,500 87,903 Common share dividends payable 1,943,386 4,028,681 892,374 1,702,740 1,653,120 1,058,156 Preferred share dividends payable 116,497 298,204 76,109 99,449 69,047 55,604 ----------------------------------------------------------------------------------------------------------------------------------- Total liabilities 70,102,670 107,564,932 21,125,752 79,389,816 37,028,174 12,391,137 ----------------------------------------------------------------------------------------------------------------------------------- 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 $ 543,234,774 $ 1,178,784,610 $ 278,488,221 $ 495,188,987 $ 440,872,755 $ 266,807,745 =================================================================================================================================== Common shares outstanding 38,295,278 81,138,036 19,419,608 37,353,512 29,813,300 18,525,698 =================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.19 $ 14.53 $ 14.34 $ 13.26 $ 14.79 $ 14.40 =================================================================================================================================== Net assets applicable to Common shares consist of: ----------------------------------------------------------------------------------------------------------------------------------- Common shares, $.01 par value per share $ 382,953 $ 811,380 $ 194,196 $ 373,535 $ 298,133 $ 185,257 Paid-in surplus 534,535,198 1,128,874,275 269,465,714 491,941,462 423,568,038 261,680,633 Undistributed (Over-distribution of) net investment income (322,583) (279,726) (509,420) (1,303,000) (747,456) (627,872) Accumulated net realized gain (loss) from investments and derivative transactions (1,690,205) (2,116,704) (1,550,563) (4,470,180) (3,901,424) (6,467,580) Net unrealized appreciation (depreciation) of investments and derivative transactions 10,329,411 51,495,385 10,888,294 8,647,170 21,655,464 12,037,307 ----------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 543,234,774 $ 1,178,784,610 $ 278,488,221 $ 495,188,987 $ 440,872,755 $ 266,807,745 =================================================================================================================================== 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. ----- 74 ----- | Statement of | OPERATIONS Six Months Ended April 30, 2008 (Unaudited)
Insured Insured Insured Insured Premier Insured Dividend Tax-Free Quality Opportunity Insured Income Premium Income 2 Advantage Advantage (NQI) (NIO) (NIF) (NPX) (NVG) (NEA) ----------------------------------------------------------------------------------------------------------------------------------- Investment Income $ 23,256,852 $ 47,976,847 $ 11,222,346 $ 20,503,941 $ 17,055,166 $ 9,867,223 ----------------------------------------------------------------------------------------------------------------------------------- Expenses Management fees 2,651,973 5,587,348 1,374,748 2,351,445 2,074,161 1,279,561 Preferred shares - auction fees 395,328 845,355 200,151 334,289 289,658 179,017 Preferred shares - dividend disbursing agent fees 24,790 34,804 14,879 24,838 14,877 9,954 Shareholders' servicing agent fees and expenses 35,646 57,407 14,360 20,707 3,558 1,949 Interest expense on floating rate obligations 834,119 1,267,295 207,058 1,254,647 384,559 25,183 Custodian's fees and expenses 77,400 144,914 40,304 64,349 65,093 29,166 Directors'/Trustees' fees and expenses 8,822 17,873 4,267 7,675 6,430 3,685 Professional fees 25,270 47,004 15,307 15,113 19,823 13,847 Shareholders' reports - printing and mailing expenses 45,466 97,503 24,921 46,486 37,431 22,537 Stock exchange listing fees 6,644 14,061 4,658 6,473 1,818 1,129 Investor relations expense 54,116 114,256 27,974 48,494 41,637 25,070 Portfolio insurance expense -- 7,207 -- -- -- -- Other expenses 22,974 35,550 16,764 15,657 13,246 10,449 ----------------------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 4,182,548 8,270,577 1,945,391 4,190,173 2,952,291 1,601,547 Custodian fee credit (45,959) (86,681) (41,028) (53,093) (60,988) (10,172) Expense reimbursement -- -- -- -- (817,139) (521,290) ----------------------------------------------------------------------------------------------------------------------------------- Net expenses 4,136,589 8,183,896 1,904,363 4,137,080 2,074,164 1,070,085 ----------------------------------------------------------------------------------------------------------------------------------- Net investment income 19,120,263 39,792,951 9,317,983 16,366,861 14,981,002 8,797,138 ----------------------------------------------------------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) Net realized gain (loss) from: Investments (958,619) (2,112,458) (948,301) (4,179,470) (751,103) 311,689 Forward swaps -- -- -- 5,200 -- -- Change in net unrealized appreciation (depreciation) of: Investments (25,270,916) (38,449,526) (10,243,788) (13,524,182) (8,844,977) (5,809,757) Forward swaps -- -- -- (165,919) -- -- ----------------------------------------------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) (26,229,535) (40,561,984) (11,192,089) (17,864,371) (9,596,080) (5,498,068) ----------------------------------------------------------------------------------------------------------------------------------- Distributions to Preferred Shareholders From net investment income (5,712,941) (12,291,491) (2,862,526) (4,792,076) (4,208,663) (2,359,823) From accumulated net realized gains -- (61,352) -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (5,712,941) (12,352,843) (2,862,526) (4,792,076) (4,208,663) (2,359,823) ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations $ (12,822,213) $ (13,121,876) $ (4,736,632) $ (6,289,586) $ 1,176,259 $ 939,247 ===================================================================================================================================
See accompanying notes to financial statements. ----- 75 ----- | Statement of | CHANGES in NET ASSETS (Unaudited)
Insured Quality (NQI) Insured Opportunity (NIO) ------------------------------- ---------------------------------- Six Months Year Six Months Year Ended Ended Ended Ended 4/30/08 10/31/07 4/30/08 10/31/07 ----------------------------------------------------------------------------------------------------------------------------------- Operations Net investment income $ 19,120,263 $ 37,781,613 $ 39,792,951 $ 79,137,275 Net realized gain (loss) from: Investments (958,619) 402,678 (2,112,458) 213,800 Forward swaps -- -- -- -- Change in net unrealized appreciation (depreciation) of: Investments (25,270,916) (19,111,081) (38,449,526) (36,626,210) Forward swaps -- -- -- -- Distributions to Preferred Shareholders: From net investment income (5,712,941) (11,240,731) (12,291,491) (23,971,401) From accumulated net realized gains -- -- (61,352) (491,009) ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations (12,822,213) 7,832,479 (13,121,876) 18,262,455 ----------------------------------------------------------------------------------------------------------------------------------- Distributions to Common Shareholders From net investment income (13,901,189) (27,802,379) (28,236,036) (59,595,899) From accumulated net realized gains -- -- (154,162) (1,541,606) ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common shareholders (13,901,189) (27,802,379) (28,390,198) (61,137,505) ----------------------------------------------------------------------------------------------------------------------------------- Capital Share Transactions Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares (26,723,402) (19,969,900) (41,512,074) (42,875,050) Net assets applicable to Common shares at the beginning of period 569,958,176 589,928,076 1,220,296,684 1,263,171,734 ----------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of period $ 543,234,774 $ 569,958,176 $ 1,178,784,610 $ 1,220,296,684 =================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ (322,583) $ 171,284 $ (279,726) $ 454,850 ===================================================================================================================================
See accompanying notes to financial statements. ----- 76 -----
Premier Insured Insured Premium Income (NIF) Income 2 (NPX) ------------------------------- ---------------------------------- Six Months Year Six Months Year Ended Ended Ended Ended 4/30/08 10/31/07 4/30/08 10/31/07 ----------------------------------------------------------------------------------------------------------------------------------- Operations Net investment income $ 9,317,983 $ 18,776,763 $ 16,366,861 $ 32,219,139 Net realized gain (loss) from: Investments (948,301) (437,572) (4,179,470) 670,365 Forward swaps -- -- 5,200 -- Change in net unrealized appreciation (depreciation) of: Investments (10,243,788) (8,470,828) (13,524,182) (15,396,052) Forward swaps -- -- (165,919) 165,919 Distributions to Preferred Shareholders: From net investment income (2,862,526) (5,720,025) (4,792,076) (9,604,218) From accumulated net realized gains -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations (4,736,632) 4,148,338 (6,289,586) 8,055,153 ----------------------------------------------------------------------------------------------------------------------------------- Distributions to Common Shareholders From net investment income (6,175,437) (13,749,084) (11,542,236) (24,018,307) From accumulated net realized gains -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common shareholders (6,175,437) (13,749,084) (11,542,236) (24,018,307) ----------------------------------------------------------------------------------------------------------------------------------- Capital Share Transactions Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares (10,912,069) (9,600,746) (17,831,822) (15,963,154) Net assets applicable to Common shares at the beginning of period 289,400,290 299,001,036 513,020,809 528,983,963 ----------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of period $ 278,488,221 $ 289,400,290 $ 495,188,987 $ 513,020,809 =================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ (509,420) $ (789,440) $ (1,303,000) $ (1,335,549) ===================================================================================================================================
See accompanying notes to financial statements. ----- 77 ----- | Statement of | CHANGES in NET ASSETS (continued) (Unaudited)
Insured Dividend Insured Tax-Free Advantage (NVG) Advantage (NEA) ------------------------------- ---------------------------------- Six Months Year Six Months Year Ended Ended Ended Ended 4/30/08 10/31/07 4/30/08 10/31/07 ----------------------------------------------------------------------------------------------------------------------------------- Operations Net investment income $ 14,981,002 $ 29,786,960 $ 8,797,138 $ 17,879,592 Net realized gain (loss) from: Investments (751,103) 1,658,186 311,689 683,061 Forward swaps -- -- -- -- Change in net unrealized appreciation (depreciation) of: Investments (8,844,977) (12,888,832) (5,809,757) (4,723,249) Forward swaps -- -- -- -- Distributions to Preferred Shareholders: From net investment income (4,208,663) (8,411,541) (2,359,823) (4,960,330) From accumulated net realized gains -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations 1,176,259 10,144,773 939,247 8,879,074 ----------------------------------------------------------------------------------------------------------------------------------- Distributions to Common Shareholders From net investment income (10,285,588) (22,283,514) (6,557,591) (13,111,078) From accumulated net realized gains -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common shareholders (10,285,588) (22,283,514) (6,557,591) (13,111,078) ----------------------------------------------------------------------------------------------------------------------------------- Capital Share Transactions Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- 84,005 34,771 117,345 ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- 84,005 34,771 117,345 ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares (9,109,329) (12,054,736) (5,583,573) (4,114,659) Net assets applicable to Common shares at the beginning of period 449,982,084 462,036,820 272,391,318 276,505,977 ----------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of period $ 440,872,755 $ 449,982,084 $ 266,807,745 $ 272,391,318 =================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ (747,456) $ (1,234,207) $ (627,872) $ (507,596) ===================================================================================================================================
See accompanying notes to financial statements. ----- 78 ----- | Statement of | CASH FLOWS Six Months Ended April 30, 2008 (Unaudited)
Insured Insured Quality Premium Income 2 (NQI) (NPX) ------------------------------------------------------------------------------------------------------------------------------------ Cash Flows from Operating Activities: Net Increase (Decrease) in Net Assets Applicable to Common shares from Operations $ (12,822,213) $ (6,289,586) Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations to net cash provided by (used in) operating activities: Purchases of investments (34,198,240) (37,573,275) Proceeds from sales of investments 52,372,489 75,678,518 Proceeds from (Purchases of) short-term investments, net (6,320,000) (8,415,000) Cash settlement of forward swaps -- 5,200 Amortization / (Accretion) of premiums and discounts, net (943,025) 253,743 (Increase) Decrease in receivable for dividends and interest 25,672 (111,630) (Increase) Decrease in receivable for investments sold 3,970,000 35,032 (Increase) Decrease in other assets 23,969 (5,035) Increase (Decrease) in accrued management fees (28,017) (21,816) Increase (Decrease) in accrued other liabilities (36,066) (195,505) Increase (Decrease) in Preferred shares dividends payable 3,264 6,731 Net realized (gain) loss from investments 958,619 4,179,470 Net realized (gain) loss from forward swaps -- (5,200) Change in net unrealized (appreciation) depreciation of investments 25,270,916 13,524,182 Change in net unrealized (appreciation) depreciation of forward swaps -- 165,919 ------------------------------------------------------------------------------------------------------------------------------------ Net cash provided by (used in) operating activities 28,277,368 41,231,748 ------------------------------------------------------------------------------------------------------------------------------------ Cash Flows from Financing Activities: Increase (Decrease) in floating rate obligations (8,200,000) (25,240,000) Increase (Decrease) in cash overdraft balances (326,001) -- Cash distributions paid to Common shareholders (13,885,193) (11,540,049) ------------------------------------------------------------------------------------------------------------------------------------ Net cash provided by (used in) financing activities (22,411,194) (36,780,049) ------------------------------------------------------------------------------------------------------------------------------------ Net Increase (Decrease) in Cash 5,866,174 4,451,699 Cash at the beginning of period -- 288,488 ------------------------------------------------------------------------------------------------------------------------------------ Cash at the End of Period $ 5,866,174 $ 4,740,187 ====================================================================================================================================
Supplemental Disclosure of Cash Flow Information Cash paid for interest on floating rate obligations was $834,119 and $1,254,647 for Insured Quality (NQI) and Insured Premium Income 2 (NPX), respectively. See accompanying notes to financial statements. ----- 79 ----- | Notes to | FINANCIAL STATEMENTS (Unaudited) 1. General Information and Significant Accounting Policies The funds covered in this report and their corresponding Common share stock exchange symbols are Nuveen Insured Quality Municipal Fund, Inc. (NQI), Nuveen Insured Municipal Opportunity Fund, Inc. (NIO), Nuveen Premier Insured Municipal Income Fund, Inc. (NIF), Nuveen Insured Premium Income Municipal Fund 2 (NPX), Nuveen Insured Dividend Advantage Municipal Fund (NVG) and Nuveen Insured Tax-Free Advantage Municipal Fund (NEA) (collectively, the "Funds"). Common shares of Insured Quality (NQI), Insured Opportunity (NIO), Premier Insured Income (NIF) and Insured Premium Income 2 (NPX) are traded on the New York Stock Exchange 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. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles. Investment Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Directors/Trustees. When market price quotes are not readily available (which is usually the case for municipal securities), the pricing service may establish fair value based on yields or prices of municipal bonds of comparable quality, type of issue, coupon, maturity and rating, indications of value from securities dealers, evaluations of anticipated cash flows or collateral and general market conditions. Prices of forward swap contracts are also provided by an independent pricing service approved by each Fund's Board of Directors/Trustees. If the pricing service is unable to supply a price for a municipal bond or forward swap contract, each Fund may use market quotes provided by major broker/dealers in such investments. If it is determined that the market price for an investment or derivative instrument is unavailable or inappropriate, the Board of Directors/Trustees of the Funds, or its designee, may establish fair value in accordance with procedures established in good faith by the Board of Directors/Trustees. Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates market value. Investment Transactions Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. At April 30, 2008, there were no such outstanding purchase commitments in any of the 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. Interest income also includes paydown gains and losses, if any. Dividend income, if any, is recorded on the ex-dividend date. Federal Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from ----- 80 ----- regular federal and applicable state income taxes, if any, and in the case of Insured Tax-Free Advantage (NEA) the alternative minimum tax applicable to individuals, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation. Effective April 30, 2008, the Funds adopted Financial Accounting Standards Board (FASB) Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Funds' tax returns to determine whether it is "more-likely-than-not" (i.e., a greater than 50-percent likelihood) of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold may result in a tax benefit or expense in the current year. Implementation of FIN 48 required management of the Funds to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which includes federal and certain states. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). The Funds have no examinations in progress. For all open tax years and all major taxing jurisdictions through the end of the reporting period, management of the Funds has reviewed all tax positions taken or expected to be taken in the preparation of the Funds' tax returns and concluded the adoption of FIN 48 resulted in no impact to the Funds' net assets or results of operations as of and during the six months ended April 30, 2008. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Dividends and Distributions to Common Shareholders Dividends from tax-exempt net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to Common shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from 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 ============================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the Preferred shares issued by the Funds than there were offers to buy. This meant that these auctions "failed to clear," and that many Preferred shareholders who wanted to sell their shares in these auctions were unable to do so. Preferred shareholders unable to sell their shares received distributions at the "maximum rate" applicable to failed auctions as calculated in accordance with the pre-established terms of the Preferred shares. ----- 81 ----- | Notes to | FINANCIAL STATEMENTS (continued) (Unaudited) These developments generally do not affect the management or investment policies of the Funds. However, one implication of these auction failures for Common shareholders is that the Funds' cost of leverage will likely be higher, at least temporarily, than it otherwise would have been had the auctions continued to be successful. As a result, the Funds' future Common share earnings may be lower than they otherwise would have been. Insurance During the six months ended April 30, 2008, Insured Quality (NQI), Insured Opportunity (NIO), Premier Insured Income (NIF) and Insured Premium Income 2 (NPX) invested primarily 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. During the six months ended April 30, 2008, Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA) primarily invested at least 80% of their net assets (including net assets attributable to Preferred shares) in municipal securities that were covered by insurance. Each Fund may have also invested 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, Standard & Poor's or unrated but judged to be of comparable quality by Nuveen Asset Management ("the Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. ("Nuveen"). On March 20, 2008, the Funds' Board of Directors/Trustees authorized the adoption of certain changes to each Fund's investment policies. Such changes mandate that under normal circumstances, each Fund must invest at least 80% of its net assets (including net assets attributable to Preferred shares) in municipal securities which are either covered by insurance or 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. For purposes of this 80% test, insurers must have a claims paying ability rated at least "A" at the time of purchase. In addition, each Fund must invest at least 80% of its net assets (including net assets attributable to Preferred shares) in municipal securities that are rated at least "AA" at the time of purchase. Each Fund may also invest up to 20% of its net assets (including net assets attributable to Preferred shares) in municipal securities rated below "AA" (based on the higher rating of the insurer, if any, or the underlying bond) or are unrated but judged to be of comparable quality by the Adviser. Effective March 20, 2008, the foregoing policy changes were implemented in Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA). Effective March 20, 2008, Insured Quality (NQI), Insured Opportunity (NIO) and Premier Insured Income (NIF) may invest in insured municipal bonds with an insurer rated at least "A" at the time of purchase. The remaining foregoing changes will be implemented pending shareholder approval. The foregoing policy changes will be implemented in Insured Premium Income 2 (NPX) pending shareholder approval. 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. ----- 82 ----- Inverse Floating Rate Securities Each Fund is authorized to invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. In turn, this trust (a) issues floating rate certificates, in face amounts equal to some fraction of the deposited bond's par amount or market value, that typically pay short-term tax-exempt interest rates to third parties, and (b) issues to a long-term investor (such as one of the Funds) an inverse floating rate certificate (sometimes referred to as an "inverse floater") that represents all remaining or residual interest in the trust. The income received by the inverse floater holder varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the inverse floater holder bears substantially all of the underlying bond's downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond's value. The price of an inverse floating rate security will be more volatile than that of the underlying bond because the interest rate is dependent on not only the fixed coupon rate of the underlying bond but also on the short-term interest paid on the floating rate certificates, and because the inverse floating rate security essentially bears the risk of loss of the greater face value of the underlying bond. A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an "externally-deposited inverse floater"), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a "self-deposited inverse floater"). A Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a "recourse trust" or "credit recovery swap") with a broker-dealer by which a Fund agrees to reimburse the broker-dealer, in certain circumstances, for the difference between the liquidation value of the fixed-rate bond held by the trust and the liquidation value of the floating rate certificates, as well as any shortfalls in interest cash flows. The inverse floater held by a Fund gives the Fund the right (a) to cause the holders of the floating rate certificates to tender their notes at par, and (b) to have the broker transfer the fixed-rate bond held by the trust to the Fund, thereby collapsing the trust. An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as an "Inverse floating rate investment". An investment in a self-deposited inverse floater, recourse trust or credit recovery swap is accounted for as a financing transaction in accordance with Statement of Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities". In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as an "Underlying bond of an inverse floating rate trust", with the Fund accounting for the short-term floating rate certificates issued by the trust as "Floating rate obligations" on the Statement of Assets and Liabilities. In addition, the Fund reflects in Investment Income the entire earnings of the underlying bond and accounts for the related interest paid to the holders of the short-term floating rate certificates as "Interest expense on floating rate obligations" in the Statement of Operations. During the six months ended April 30, 2008, each Fund invested in externally deposited inverse floaters and/or self-deposited inverse floaters. The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters during the six months ended April 30, 2008, were as follows:
Premier Insured Insured Insured Insured Insured Insured Premium Dividend Tax-Free Quality Opportunity Income Income 2 Advantage Advantage (NQI) (NIO) (NIF) (NPX) (NVG) (NEA) ------------------------------------------------------------------------------------------------------------------------------- Average floating rate obligations $57,368,931 $87,314,872 $14,268,846 $85,262,158 $26,859,296 $1,766,538 Average annual interest rate and fees 2.92% 2.92% 2.92% 2.96% 2.88% 2.87% ===============================================================================================================================
Forward Swap Transactions Each Fund is authorized to invest in forward interest rate swap transactions. Each Fund's use of forward interest rate swap transactions is intended to help the Fund manage its overall interest rate sensitivity, either shorter or longer, generally to more closely align the Fund's interest rate sensitivity with that of the broader municipal market. Forward interest rate swap transactions involve each Fund's agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the "effective date"). The amount of the payment obligation is based on the notional amount of the forward swap contract and the termination date of the swap (which is akin to a bond's maturity). The value of the Fund's swap commitment would increase or decrease based primarily on the extent to which long-term interest rates for bonds having a maturity of the swap's termination date increases or decreases. The Funds may terminate a swap contract prior to the effective date, at which point a realized gain or loss is recognized. When a forward swap is terminated, it ordinarily does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash on a net basis. Each Fund intends, but is not obligated, to terminate its forward swaps before the effective date. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the credit risk associated with a counterparty failing to honor its commitment to pay any realized gain to the Fund upon termination. To reduce such credit risk, all counterparties are required to pledge collateral daily (based on the daily valuation of ----- 83 ----- | Notes to | FINANCIAL STATEMENTS (continued) (Unaudited) each swap) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when any of the Funds have an unrealized loss on a swap contract, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate, either up or down, by at least the predetermined threshold amount. Insured Premium Income 2 (NPX) was the only Fund to invest in forward interest rate swap transactions during the six months ended April 30, 2008. Zero Coupon Securities Each Fund is authorized to invest in zero coupon securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. Such securities are included in the Portfolios of Investments with a 0.000% coupon rate in their description. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which a Fund overdraws its account at the custodian bank. Indemnifications Under the Funds' organizational documents, their Officers and Directors/Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. Use of Estimates The preparation of financial statements in conformity with 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) ---------------------- ----------------------- ----------------------- Six Months Year Six Months Year Six Months Year Ended Ended Ended Ended Ended Ended 4/30/08 10/31/07 4/30/08 10/31/07 4/30/08 10/31/07 ---------------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions -- -- -- -- -- -- ================================================================================================================
----- 84 -----
Insured Insured Insured Premium Income 2 (NPX) Dividend Advantage (NVG) Tax-Free Advantage (NEA) ---------------------------- ------------------------- -------------------------- Six Months Year Six Months Year Six Months Year Ended Ended Ended Ended Ended Ended 4/30/08 10/31/07 4/30/08 10/31/07 4/30/08 10/31/07 ----------------------------------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions -- -- -- 5,478 2,433 7,983 ===================================================================================================================================
3. Investment Transactions Purchases and sales (including maturities but excluding short-term investments and derivative transactions) during the six months ended April 30, 2008, 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 $34,198,240 $ 77,072,223 $16,053,254 $37,573,275 $28,119,137 $13,962,680 Sales and maturities 52,372,489 106,744,715 16,446,743 75,678,518 32,969,310 10,930,910 ===================================================================================================================================
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 timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate transactions subject to SFAS No. 140. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds. At April 30, 2008, 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 $834,819,278 $1,768,565,896 $422,088,637 $739,036,965 $639,847,305 $396,790,589 ===================================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments at April 30, 2008, 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 $ 27,610,836 $ 77,896,401 $16,853,781 $ 20,950,147 $28,878,384 $15,358,203 Depreciation (16,697,418) (24,393,769) (5,874,714) (12,236,562) (7,035,132) (3,264,761) ----------------------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $ 10,913,418 $ 53,502,632 $10,979,067 $ 8,713,585 $21,843,252 $12,093,442 ===================================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at October 31, 2007, the Funds' last tax year end, were as follows:
Premier Insured Insured Insured Insured Insured Insured Premium Dividend Tax-Free Quality Opportunity Income Income 2 Advantage Advantage (NQI) (NIO) (NIF) (NPX) (NVG) (NEA) ----------------------------------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $2,071,769 $3,582,375 $232,517 $627,351 $364,579 $585,550 Undistributed net ordinary income ** -- -- -- -- -- -- Undistributed net long-term capital gains -- 211,268 -- -- -- -- ===================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on October 1, 2007, paid on November 1, 2007. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. ----- 85 ----- | Notes to | FINANCIAL STATEMENTS (continued) (Unaudited) The tax character of distributions paid during the Funds' last tax year ended October 31, 2007, 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 (NQI) (NIO) (NIF) (NPX) (NVG) (NEA) ----------------------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $39,047,625 $83,864,627 $19,606,912 $33,728,035 $30,917,881 $18,104,469 Distributions from net ordinary income** -- -- -- -- -- -- Distributions from net long-term capital gains -- 2,032,615 -- -- -- -- ===================================================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. At October 31, 2007, the Funds' last tax year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
Premium Insured Insured Insured Insured Insured Premium Dividend Tax-Free Quality Income Income 2 Advantage Advantage (NQI) (NIF) (NPX) (NVG) (NEA) ----------------------------------------------------------------------------------------------------------------------------------- Expiration: October 31, 2008 $ -- $ -- $295,910 $ -- $ -- October 31, 2009 -- -- -- -- -- October 31, 2010 -- -- -- -- -- October 31, 2011 -- -- -- -- -- October 31, 2012 -- -- -- -- -- October 31, 2013 -- -- -- 160,392 4,675,683 October 31, 2014 731,586 164,691 -- 1,187,192 -- October 31, 2015 -- 437,571 -- -- 35,274 ----------------------------------------------------------------------------------------------------------------------------------- Total $731,586 $602,262 $295,910 $1,347,584 $4,710,957 ===================================================================================================================================
----- 86 ----- 5. Management Fees and Other Transactions with Affiliates Each Fund's management fee is separated into two components - a complex-level component, based on the aggregate amount of all fund assets managed by the Adviser, and a specific fund-level component, based only on the amount of assets within each individual Fund. This pricing structure enables Nuveen fund shareholders to benefit from growth in the assets within each individual fund as well as from growth in the amount of complex-wide assets managed by the Adviser. The annual fund-level fee, payable monthly, for each Fund is based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows:
Insured Quality (NQI) Insured Opportunity (NIO) Premier Insured Income (NIF) Insured Premium Income 2 (NPX) Average Daily Net Assets (including net assets 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 ====================================================================================================================
Insured Dividend Advantage (NVG) Insured Tax-Free Advantage (NEA) Average Daily Net Assets (including net assets attributable to Preferred shares) Fund-Level Fee Rate -------------------------------------------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For net assets over $2 billion .3750 ====================================================================================================================
The annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund assets managed as stated in the table below. As of April 30, 2008, the complex-level fee rate was .1855%. The complex-level fee schedule is as follows:
Complex-Level Asset Breakpoint Level (1) Effective Rate at Breakpoint Level -------------------------------------------------------------------------------------------------------------------- $55 billion .2000% $56 billion .1996 $57 billion .1989 $60 billion .1961 $63 billion .1931 $66 billion .1900 $71 billion .1851 $76 billion .1806 $80 billion .1773 $91 billion .1691 $125 billion .1599 $200 billion .1505 $250 billion .1469 $300 billion .1445 ====================================================================================================================
(1) The complex-level fee component of the management fee for the funds is calculated based upon the aggregate Managed Assets ("Managed Assets" means the average daily net assets of each fund including assets attributable to preferred stock issued by or borrowings by the Nuveen funds) of Nuveen-sponsored funds in the U.S. ----- 87 ----- | Notes to | FINANCIAL STATEMENTS (continued) (Unaudited) The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those of its Directors/Trustees who are affiliated with the Adviser or to its Officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Directors/Trustees has adopted a deferred compensation plan for independent Directors/Trustees that enables Directors/Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised funds. For the first ten years of Insured Dividend Advantage's (NVG) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (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. ----- 88 ----- 6. New Accounting Pronouncements Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157 In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements." This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of this standard relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of April 30, 2008, management does not believe the adoption of SFAS No. 157 will impact the financial statement amounts; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements included within the Statement of Operations for the period. Financial Accounting Standards Board Statement of Financial Accounting Standards No. 161 In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative Instruments and Hedging Activities." This standard is intended to enhance financial statement disclosures for derivative instruments and hedging activities and enable investors to understand: a) how and why a fund uses derivative instruments, b) how derivative instruments and related hedge items are accounted for, and c) how derivative instruments and related hedge items affect a fund's financial position, results of operations and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. As of April 30, 2008, management does not believe the adoption of SFAS No. 161 will impact the financial statement amounts; however, additional footnote disclosures may be required about the use of derivative instruments and hedging items. 7. Subsequent Events Distributions to Common Shareholders The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on June 2, 2008, to shareholders of record on May 15, 2008, 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 $.0605 $.0580 $.0530 $.0515 $.0575 $.0590 ====================================================================================================
Auction Rate Preferred Shares (ARPS) On June 11, 2008, Nuveen announced the Fund Board's approval of plans to use tender option bonds (TOBs), also known as inverse floating rate securities or inverse floaters, to refinance a portion of the funds' outstanding ARPS, whose auctions have been failing for several months, including an initial phase of approximately $1 billion in forty-one funds. Of this amount, Nuveen expects that approximately $560 million in ARPS redemption notices will be issued shortly for thirteen funds, including Insured Opportunity (NIO). Recent Credit Market Events Subsequent to April 30, 2008, and at the time this report was prepared, at least one rating agency further reduced the rating for CIFG-insured bonds to BB and MBIA-insured bonds to A. ----- 89 ----- | Financial | HIGHLIGHTS(Unaudited) Selected data for a Common share outstanding throughout each period:
Investment Operations ------------------------------------------------------------------ Distributions Distributions from Net from Beginning Investment Capital Common Net Income to Gains to Share Net Realized/ Preferred Preferred Net Asset Investment Unrealized Share- Share- Value Income Gain (Loss) holders+ holders+ Total --------------------------------------------------------------------------------------------------------------- Insured Quality (NQI) --------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2008(b) $ 14.88 $ .50 $ (.68) $ (.15) $ -- $ (.33) 2007 15.40 .99 (.49) (.29) -- .21 2006 15.31 .99 .24 (.25) (.01) .97 2005 15.85 1.03 (.39) (.16) -- .48 2004 15.72 1.08 .20 (.08) -- 1.20 2003 15.87 1.10 (.05) (.07) (.01) .97 Insured Opportunity (NIO) --------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2008(b) 15.04 .49 (.50) (.15) --* (.16) 2007 15.57 .98 (.45) (.30) (.01) .22 2006 15.46 .98 .34 (.24) (.03) 1.05 2005 16.06 1.01 (.50) (.16) -- .35 2004 15.89 1.05 .20 (.08) -- 1.17 2003 15.83 1.06 .17 (.07) (.01) 1.15 =============================================================================================================== Less Distributions -------------------------------- Net Offering Investment Capital Costs and Ending Income to Gains to Preferred Common Common Common Share Share Ending Share- Share- Underwriting Net Asset Market holders holders Total Discounts Value Value ------------------------------------------------------------------------------------------------------- Insured Quality (NQI) ------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2008(b) $ (.36) $ -- $ (.36) $ -- $ 14.19 $ 13.40 2007 (.73) -- (.73) -- 14.88 13.61 2006 (.80) (.08) (.88) -- 15.40 14.83 2005 (.97) (.05) (1.02) -- 15.31 15.31 2004 (1.02) (.05) (1.07) -- 15.85 16.00 2003 (1.00) (.12) (1.12) -- 15.72 16.39 Insured Opportunity (NIO) ------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2008(b) (.35) --** (.35) -- 14.53 13.60 2007 (.73) (.02) (.75) -- 15.04 13.56 2006 (.80) (.14) (.94) -- 15.57 14.75 2005 (.92) (.03) (.95) -- 15.46 14.52 2004 (.97) (.03) (1.00) -- 16.06 16.05 2003 (.97) (.12) (1.09) -- 15.89 15.64 ======================================================================================================= Total Returns -------------------------- Based on Based Common on Share Net Market Asset Value*** Value*** ------------------------------------------------------------------------------------- Insured Quality (NQI) ------------------------------------------------------------------------------------- Year Ended 10/31: 2008(b) 1.10% (2.19)% 2007 (3.48) 1.38 2006 2.76 6.53***** 2005 2.11 3.09 2004 4.37 7.90 2003 12.92 6.27 Insured Opportunity (NIO) ------------------------------------------------------------------------------------- Year Ended 10/31: 2008(b) 2.93 (1.05) 2007 (3.18) 1.49 2006 8.26 7.05***** 2005 (3.72) 2.21 2004 9.47 7.64 2003 10.22 7.51 ===================================================================================== Ratios/Supplemental Data ---------------------------------------------------------------------- Ratios to Average Net Assets Applicable to Common Shares Before Credit/Reimbursement ------------------------------------------------ Ending Net Assets Applicable Expenses Expenses Net to Common Including Excluding Investment Shares (000) Interest++(a) Interest++(a) Income++ ------------------------------------------------------------------------------------------------------- Insured Quality (NQI) ------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2008(b) $ 543,235 1.51%****** 1.21%****** 6.90%****** 2007 569,958 1.52 1.18 6.53 2006 589,928 1.20 1.20 6.49 2005 585,777 1.19 1.19 6.58 2004 605,028 1.19 1.19 6.88 2003 598,102 1.20 1.20 6.93 Insured Opportunity (NIO) ------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2008(b) 1,178,785 1.39****** 1.17****** 6.65****** 2007 1,220,297 1.41 1.16 6.39 2006 1,263,172 1.17 1.17 6.38 2005 1,254,638 1.16 1.16 6.35 2004 1,302,985 1.16 1.16 6.59 2003 1,288,087 1.17 1.17 6.67 ====================================================================================================== Ratios/Supplemental Data --------------------------------------------------------------- Ratios to Average Net Assets Applicable to Common Shares After Credit/Reimbursement**** --------------------------------------------- Expenses Expenses Net Portfolio Including Excluding Investment Turnover Interest++(a) Interest++(a) Income++ Rate ================================================================================================ Insured Quality (NQI) ------------------------------------------------------------------------------------------------ Year Ended 10/31: 2008(b) 1.50%****** 1.19%****** 6.92%****** 4% 2007 1.50 1.16 6.55 5 2006 1.20 1.20 6.49 13 2005 1.19 1.19 6.58 21 2004 1.19 1.19 6.88 8 2003 1.20 1.20 6.94 14 Insured Opportunity (NIO) ------------------------------------------------------------------------------------------------ Year Ended 10/31: 2008(b) 1.37****** 1.16****** 6.67****** 4 2007 1.40 1.14 6.41 5 2006 1.17 1.17 6.38 13 2005 1.16 1.16 6.35 25 2004 1.16 1.16 6.59 8 2003 1.16 1.16 6.68 21 ================================================================================================
Floating Rate Obligations Preferred Shares at End of Period at End of Period ------------------------------------- -------------------------- Aggregate Liquidation Aggregate Amount and Market Asset Amount Asset Outstanding Value Coverage Outstanding Coverage (000) Per Share Per Share (000) Per $1,000 ---------------------------------------------------------------------------------------------------- Insured Quality (NQI) ---------------------------------------------------------------------------------------------------- Year Ended 10/31: 2008(b) $ 318,000 $ 25,000 $ 67,707 $ 67,387 $ 13,780 2007 318,000 25,000 69,808 54,140 17,401 2006 318,000 25,000 71,378 -- -- 2005 318,000 25,000 71,052 -- -- 2004 318,000 25,000 72,565 -- -- 2003 318,000 25,000 72,021 -- -- Insured Opportunity (NIO) --------------------------------------------------------------------------------------------------- Year Ended 10/31: 2008(b) 680,000 25,000 68,338 101,853 19,250 2007 680,000 25,000 69,864 86,103 23,070 2006 680,000 25,000 71,440 -- -- 2005 680,000 25,000 71,126 -- -- 2004 680,000 25,000 72,904 -- -- 2003 680,000 25,000 72,356 -- -- ===================================================================================================
* Distributions from Capital Gains to Preferred shareholders rounds to less than $.01 per share. ** Distributions from Capital Gains to Common shareholders rounds to less than $.01 per share. *** Total Return on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in calculation. Total returns are not annualized. **** After custodian fee credit and expense reimbursement, where applicable. ***** During the fiscal year ended October 31, 2006, Insured Quality (NQI) and Insured Opportunity (NIO) received payments from the Adviser of $27,762 and $42,338, respectively, to offset losses realized on the disposal of investments purchased in violation of each Fund's investment restrictions. This reimbursement did not have an impact on the Funds' Total Return on Common Share Net Asset Value. ****** Annualized. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. (a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1- Inverse Floating Rate Securities. (b) For the six months ended April 30, 2008. See accompanying notes to financial statements. -------------- 90-91 spread -------------- | Financial | HIGHLIGHTS (continued) (Unaudited) Selected data for a Common share outstanding throughout each period:
Investment Operations ------------------------------------------------------------------ Distributions Distributions from Net from Beginning Investment Capital Common Net Income to Gains to Share Net Realized/ Preferred Preferred Net Asset Investment Unrealized Share- Share- Value Income Gain (Loss) holders+ holders+ Total --------------------------------------------------------------------------------------------------------------- Premier Insured Income (NIF) --------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2008(b) $14.90 $ .48 $(.57) $(.15) $ -- $(.24) 2007 15.40 .97 (.47) (.29) -- .21 2006 15.33 .98 .25 (.25) (.02) .96 2005 16.00 1.01 (.49) (.16) (.01) .35 2004 15.69 1.03 .36 (.08) -- 1.31 2003 15.59 1.05 .13 (.07) -- 1.11 Insured Premium Income 2 (NPX) --------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2008(b) 13.73 .44 (.47) (.13) -- (.16) 2007 14.16 .86 (.39) (.26) -- .21 2006 13.93 .86 .28 (.23) -- .91 2005 14.45 .89 (.44) (.14) -- .31 2004 14.24 .93 .23 (.07) -- 1.09 2003 14.17 .96 .03 (.06) -- .93 =============================================================================================================== Less Distributions ------------------------------ Net Offering Investment Capital Costs and Ending Income to Gains to Preferred Common Common Common Share Share Ending Share- Share- Underwriting Net Asset Market holders holders Total Discounts Value Value ----------------------------------------------------------------------------------------------------- Premier Insured Income (NIF) ----------------------------------------------------------------------------------------------------- Year Ended 10/31: 2008(b) $(.32) $ -- $ (.32) $-- $14.34 $13.06 2007 (.71) -- (.71) -- 14.90 13.25 2006 (.79) (.10) (.89) -- 15.40 14.60 2005 (.93) (.09) (1.02) -- 15.33 14.40 2004 (.98) (.02) (1.00) -- 16.00 15.64 2003 (.98) (.03) (1.01) -- 15.69 15.51 Insured Premium Income 2 (NPX) ----------------------------------------------------------------------------------------------------- Year Ended 10/31: 2008(b) (.31) -- (.31) -- 13.26 11.91 2007 (.64) -- (.64) -- 13.73 12.18 2006 (.68) -- (.68) -- 14.16 13.03 2005 (.83) -- (.83) -- 13.93 12.83 2004 (.88) -- (.88) -- 14.45 14.11 2003 (.86) -- (.86) -- 14.24 14.12 ===================================================================================================== Total Returns ------------------- Based on Based Common on Share Net Market Asset Value* Value* -------------------------------------------------------------------------------------- Premier Insured Income (NIF) -------------------------------------------------------------------------------------- Year Ended 10/31: 2008(b) .96% (1.62)% 2007 (4.66) 1.40 2006 7.68 6.46 2005 (1.66) 2.16 2004 7.55 8.62 2003 7.84 7.28 Insured Premium Income 2 (NPX) -------------------------------------------------------------------------------------- Year Ended 10/31: 2008(b) 2007 .31 (1.16) 2006 (1.77) 1.55 2005 7.11 6.75 2004 (3.32) 2.14 2003 6.42 7.89 8.84 6.70 ====================================================================================== Ratios/Supplemental Data ------------------------------------------------------------------------------------------------------------------ Ratios to Average Net Assets Ratios to Average Net Assets Applicable to Common Shares Applicable to Common Shares Before Credit/Reimbursement After Credit/Reimbursement** ---------------------------------------- ---------------------------------------- Ending Net Assets Applicable Expenses Expenses Net Expenses Expenses Net Portfolio to Common Including Excluding Investment Including Excluding Investment Turnover Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate ------------------------------------------------------------------------------------------------------------------------------------ Premier Insured Income (NIF) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2008(b) $278,488 1.38%*** 1.23%*** 6.56%*** 1.35%*** 1.20%*** 6.59%*** 4% 2007 289,400 1.38 1.21 6.41 1.36 1.19 6.43 9 2006 299,001 1.22 1.22 6.44 1.21 1.21 6.44 8 2005 297,624 1.20 1.20 6.39 1.20 1.20 6.40 20 2004 310,666 1.21 1.21 6.53 1.20 1.20 6.53 13 2003 303,912 1.22 1.22 6.66 1.21 1.21 6.68 25 Insured Premium Income 2 (NPX) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2008(b) 2007 495,189 1.67*** 1.17*** 6.51*** 1.65*** 1.15*** 6.53*** 4 2006 513,021 1.76 1.16 6.19 1.74 1.14 6.21 5 2005 528,984 1.16 1.16 6.14 1.16 1.16 6.15 15 2004 520,508 1.16 1.16 6.20 1.16 1.16 6.20 23 2003 539,697 1.16 1.16 6.52 1.16 1.16 6.53 14 530,975 1.17 1.17 6.68 1.16 1.16 6.69 31 ====================================================================================================================================
Floating Rate Obligations Preferred Shares at End of Period at End of Period ------------------------------------- -------------------------- Aggregate Liquidation Aggregate Amount and Market Asset Amount Asset Outstanding Value Coverage Outstanding Coverage (000) Per Share Per Share (000) Per $1,000 =================================================================================================== Premier Insured Income (NIF) --------------------------------------------------------------------------------------------------- Year Ended 10/31: 2008(b) $161,000 $25,000 $68,244 $17,315 $26,382 2007 161,000 25,000 69,938 14,015 33,137 2006 161,000 25,000 71,429 -- -- 2005 161,000 25,000 71,215 -- -- 2004 161,000 25,000 73,240 -- -- 2003 161,000 25,000 72,191 -- -- Insured Premium Income 2 (NPX) --------------------------------------------------------------------------------------------------- Year Ended 10/31: 2008(b) 268,900 25,000 71,038 77,080 10,913 2007 268,900 25,000 72,696 92,040 9,495 2006 268,900 25,000 74,180 -- -- 2005 268,900 25,000 73,392 -- -- 2004 268,900 25,000 75,176 -- -- 2003 268,900 25,000 74,365 -- -- ===================================================================================================
* Total Return on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in calculation. Total returns are not annualized. ** After custodian fee credit and expense reimbursement, where applicable. *** Annualized. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. (a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1- Inverse Floating Rate Securities. (b) For the six months ended April 30, 2008. See accompanying notes to financial statements. -------------- 92-93 spread -------------- | Financial | HIGHLIGHTS (continued) (Unaudited) Selected data for a Common share outstanding throughout each period:
Investment Operations ------------------------------------------------------------------ Distributions Distributions from Net from Beginning Investment Capital Common Net Income to Gains to Share Net Realized/ Preferred Preferred Net Asset Investment Unrealized Share- Share- Value Income Gain (Loss) holders+ holders+ Total --------------------------------------------------------------------------------------------------------------- Insured Dividend Advantage (NVG) --------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2008(c) $15.09 $ .50 $(.32) $(.14) $ -- $ .04 2007 15.50 1.00 (.38) (.28) -- .34 2006 15.23 1.01 .33 (.25) -- 1.09 2005 15.78 1.00 (.38) (.15) (.01) .46 2004 15.41 1.02 .42 (.07) -- 1.37 2003 15.35 1.03 .15 (.07) (.01) 1.10 Insured Tax-Free Advantage (NEA) --------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2008(c) 14.71 .47 (.30) (.13) -- .04 2007 14.93 .97 (.21) (.27) -- .49 2006 14.56 .97 .38 (.24) -- 1.11 2005 14.75 .97 (.19) (.15) -- .63 2004 14.54 .99 .21 (.07) -- 1.13 2003(b) 14.33 .82 .42 (.05) -- 1.19 =============================================================================================================== Less Distributions ------------------------------- Net Offering Investment Capital Costs and Ending Income to Gains to Preferred Common Common Common Share Share Ending Share- Share- Underwriting Net Asset Market holders holders Total Discounts Value Value ------------------------------------------------------------------------------------------------------ Insured Dividend Advantage (NVG) ------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2008(c) $ (.34) $ -- $ (.34) $ -- $ 14.79 $ 13.47 2007 (.75) -- (.75) -- 15.09 13.71 2006 (.82) -- (.82) -- 15.50 14.89 2005 (.89) (.12) (1.01) -- 15.23 14.17 2004 (.93) (.07) (1.00) -- 15.78 14.89 2003 (.93) (.11) (1.04) -- 15.41 14.81 Insured Tax-Free Advantage (NEA) ------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2008(c) (.35) -- (.35) -- 14.40 14.03 2007 (.71) -- (.71) -- 14.71 14.30 2006 (.74) -- (.74) -- 14.93 14.35 2005 (.81) (.01) (.82) -- 14.56 13.41 2004 (.92) (.01) (.93) .01 14.75 14.91 2003(b) (.78) -- (.78) (.20) 14.54 14.79 ====================================================================================================== Total Returns --------------------- Based on Based Common on Share Net Market Asset Value* Value* ------------------------------------------------------------------------------------------ Insured Dividend Advantage (NVG) ------------------------------------------------------------------------------------------ Year Ended 10/31: 2008(c) .78% .31% 2007 (3.12) 2.25 2006 11.09 7.39 2005 2.00 2.93 2004 7.61 9.19 2003 6.10 7.37 Insured Tax-Free Advantage (NEA) ------------------------------------------------------------------------------------------ Year Ended 10/31: 2008(c) .58 .32 2007 4.59 3.35 2006 12.82 7.82 2005 (4.68) 4.33 2004 7.41 8.07 2003(b) 3.87 6.98 ========================================================================================== Ratios/Supplemental Data ------------------------------------------------------------------------------------------------------------------ Ratios to Average Net Assets Ratios to Average Net Assets Applicable to Common Shares Applicable to Common Shares Before Credit/Reimbursement After Credit/Reimbursement** ----------------------------------------- ------------------------------------------ Ending Net Assets Applicable Expenses Expenses Net Expenses Expenses Net Portfolio to Common Including Excluding Investment Including Excluding Investment Turnover Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate ------------------------------------------------------------------------------------------------------------------------------------ Insured Dividend Advantage (NVG) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2008(c) $440,873 1.33%*** 1.16%*** 6.35%*** .93%*** .76%*** 6.75%*** 4% 2007 449,982 1.31 1.14 6.15 .88 .71 6.58 12 2006 462,037 1.15 1.15 6.15 .70 .70 6.60 15 2005 454,018 1.15 1.15 5.96 .70 .70 6.42 2 2004 470,389 1.15 1.15 6.09 .70 .70 6.54 11 2003 459,368 1.17 1.17 6.22 .72 .72 6.67 25 Insured Tax-Free Advantage (NEA) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2008(c) 266,808 1.19*** 1.17*** 6.16*** .80*** .78*** 6.55*** 3 2007 272,391 1.19 1.17 6.04 .69 .67 6.54 6 2006 276,506 1.19 1.19 6.12 .69 .69 6.61 -- 2005 269,614 1.19 1.19 6.06 .70 .70 6.55 1 2004 273,112 1.20 1.20 6.24 .71 .71 6.73 13 2003(b) 269,112 1.12* 1.12* 5.52* .65* .65* 6.00* 72 ====================================================================================================================================
Floating Rate Obligations Preferred Shares at End of Period at End of Period ------------------------------------- -------------------------- Aggregate Liquidation Aggregate Amount and Market Asset Amount Asset Outstanding Value Coverage Outstanding Coverage (000) Per Share Per Share (000) Per $1,000 --------------------------------------------------------------------------------------------------- Insured Dividend Advantage (NVG) --------------------------------------------------------------------------------------------------- Year Ended 10/31: 2008(c) $233,000 $25,000 $72,304 $34,933 $ 20,290 2007 233,000 25,000 73,281 20,938 33,619 2006 233,000 25,000 74,575 -- -- 2005 233,000 25,000 73,714 -- -- 2004 233,000 25,000 75,471 -- -- 2003 233,000 25,000 74,288 -- -- Insured Tax-Free Advantage (NEA) --------------------------------------------------------------------------------------------------- Year Ended 10/31: 2008(c) 144,000 25,000 71,321 7,305 57,237 2007 144,000 25,000 72,290 1,305 320,074 2006 144,000 25,000 73,005 -- -- 2005 144,000 25,000 71,808 -- -- 2004 144,000 25,000 72,415 -- -- 2003(b) 144,000 25,000 71,721 -- -- ===================================================================================================
* Total Return on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in calculation. Total returns are not annualized. ** After custodian fee credit and expense reimbursement, where applicable. *** Annualized. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. (a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1- Inverse Floating Rate Securities. (b) For the period November 21, 2002 (commencement of operations) through October 31, 2003. (c) For the six months ended April 30, 2008. See accompanying notes to financial statements. -------------- 94-95 spread -------------- Reinvest Automatically EASILY and CONVENIENTLY -------------------------------------------------------------------------------- Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account. Nuveen Closed-End Funds Dividend Reinvestment Plan Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional Fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. Easy and convenient To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. How shares are purchased The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund's shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares' net asset value or 95% of the shares' market value on the last business day immediately prior to the purchase date. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. ----- 96 ----- 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. ----- 97 ----- Glossary of TERMS USED in this REPORT -------------------------------------------------------------------------------- o Auction Rate Bond: An auction rate bond is a security whose interest payments are adjusted periodically through an auction process, which process typically also serves as a means for buying and selling the bond. Auctions that fail to attract enough buyers for all the shares offered for sale are deemed to have "failed", with current holders receiving a formula-based interest rate until the next scheduled auction. o Average Annual Total Return: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment's actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered. o Average Effective Maturity: The average of the number of years to maturity of the bonds in a Fund's portfolio, computed by weighting each bond's time to maturity (the date the security comes due) by the market value of the security. This figure does not account for the likelihood of prepayments or the exercise of call provisions unless an escrow account has been established to redeem the bond before maturity. The market value weighting for an investment in an inverse floating rate security is the value of the portfolio's residual interest in the inverse floating rate trust, and does not include the value of the floating rate securities issued by the trust. o Inverse Floaters: Inverse floating rate securities are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond's par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an "inverse floater") to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond's downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond's value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis. o Leverage-Adjusted Duration: Duration is a measure of the expected period over which a bond's principal and interest will be paid, and consequently is a measure of the sensitivity of a bond's or bond Fund's value to changes when market interest rates change. Generally, the longer a bond's or Fund's duration, the more the price of the bond or Fund will change as interest rates change. Leverage-adjusted duration takes into account the leveraging process for a Fund and therefore is longer than the duration of the Fund's portfolio of bonds. o Market Yield (also known as Dividend Yield or Current Yield): An investment's current annualized dividend divided by its current market price. o Net Asset Value (NAV): A Fund's common share NAV per share is calculated by subtracting the liabilities of the Fund (including any Preferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. o Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. o Zero Coupon Bond: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Tax-exempt income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically. ----- 98 ----- Other Useful INFORMATION QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION You may obtain (i) each Fund's quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the twelve-month period ended June 30, 2007, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at www.nuveen.com. You may also obtain this and other Fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public References Section at 100 F Street NE, Washington, D.C. 20549. CEO Certification Disclosure Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the Securities and Exchange Commission the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act. Board of Directors/Trustees Robert P. Bremner Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Carole E. Stone Fund Manager Nuveen Asset Management 333 West Wacker Drive Chicago, IL 60606 Custodian State Street Bank & Trust Company Boston, MA Transfer Agent and Shareholder Services State Street Bank & Trust Company Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 Legal Counsel Chapman and Cutler LLP Chicago, IL Independent Registered Public Accounting Firm Ernst & Young LLP Chicago, IL Each Fund intends to repurchase shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the period covered by this report. Any future repurchases will be reported to shareholders in the next annual or semi-annual report. ----- 99 ----- Nuveen Investments: -------------------- SERVING INVESTORS FOR GENERATIONS Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles. We offer many different investing solutions for our clients' different needs. Managing $153 billion in assets, as of March 31, 2008, Nuveen Investments offers access to a number of different asset classes and investing solutions through a variety of products. Nuveen Investments markets its capabilities under six distinct brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in growth-style equities; Symphony, a leading institutional manager of market-neutral alternative investment portfolios; Santa Barbara, a leader in growth equities; and Tradewinds, a leader in global equities. Find out how we can help you reach your financial goals. To learn more about the products and services Nuveen Investments offers, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Be sure to obtain a prospectus, where applicable. Investors should consider the investment objective and policies, risk considerations, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information relevant to an investment in the Fund. For a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money. Learn more about Nuveen Funds at: www.nuveen.com/etf | Share prices | Fund details | Daily financial news | Investor education | Interactive planning tools ESA-D-0408D ITEM 2. CODE OF ETHICS. Not applicable to this filing. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable to this filing. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable to this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to this filing. 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. Not applicable to this filing. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. 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. (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 to this filing. (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: See 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: See Ex-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen Insured Tax-Free Advantage Municipal Fund ----------------------------------------------------------- By (Signature and Title) /s/ Kevin J. McCarthy ---------------------------------------------- Kevin J. McCarthy (Vice President and Secretary) Date: July 9, 2008 ------------------------------------------------------------------- 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: July 9, 2008 ------------------------------------------------------------------- By (Signature and Title) /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: July 9, 2008 -------------------------------------------------------------------