N-CSR 1 file001.txt NUVEEN INSURED TAX-FREE ADVANTAGE MUNICIPAL FUND UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-21213 --------------------- Nuveen Insured Tax-Free Advantage Municipal Fund -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) 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: October 31, 2009 ------------------ 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. LOGO: NUVEEN INVESTMENTS Closed-End Funds Nuveen Investments Municipal Closed-End Funds IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Annual Report October 31, 2009 ----------------- --------------------- ------------------ NUVEEN INSURED NUVEEN INSURED NUVEEN PREMIER QUALITY MUNICIPAL MUNICIPAL OPPORTUNITY INSURED MUNICIPAL FUND, INC. FUND, INC. INCOME FUND, INC. NQI NIO NIF ----------------- --------------------- ------------------ NUVEEN INSURED NUVEEN INSURED NUVEEN INSURED PREMIUM INCOME DIVIDEND ADVANTAGE TAX-FREE ADVANTAGE MUNICIPAL FUND 2 MUNICIPAL FUND MUNICIPAL FUND NPX NVG NEA OCTOBER 09 LIFE IS COMPLEX. Nuveen makes things e-simple. It only takes a minute to sign up for e-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Investments Fund information is ready. No more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on your computer if you wish. Free e-Reports right to your e-mail! WWW.INVESTORDELIVERY.COM If you receive your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR WWW.NUVEEN.COM/ACCOUNTACCESS If you receive your Nuveen Fund dividends and statements directly from Nuveen. LOGO: NUVEEN INVESTMENTS Chairman's Letter to Shareholders [PHOTO OF ROBERT P. BREMNER] DEAR SHAREHOLDER, The financial markets in which your Fund operates continue to reflect the larger economic crosscurrents. The illiquidity that infected global credit markets over the last year continues to recede but there is concern about the impact of a reduction in official liquidity support programs. The major institutions that are the linchpin of the international financial system have strengthened their capital structures, but many still struggle with losses in their various portfolios. Global trends include increasing trade and concern about the ability of the U.S. government to address its substantial budgetary deficits. While the fixed-income and equity markets have recovered from the lows recorded in the first quarter of 2009, identifying those developments that will define the future is never easy, and rarely is it more difficult than at present. A fundamental component of a successful investment program is a commitment to remain focused on long-term investment goals even during periods of heightened market uncertainty. Another component is to re-evaluate investment disciplines and tactics and to confirm their validity following periods of extreme volatility and market dislocation, such as we have recently experienced. Your Board carried out an intensive review of investment performance with these objectives in mind during April and May of 2009 as part of the annual management contract renewal process. I encourage you to read the description of this process in the Annual Investment Management Agreement Approval Process section of this report. Confirming the appropriateness of a long term investment strategy is as important for our shareholders as it is for our professional investment managers. For that reason, I again encourage you to remain in communication with your financial consultant on this subject. In September 2009, Nuveen completed the refinancing, at par, of all the auction rate preferred shares issued by its taxable closed-end funds. On October 15, Nuveen announced the first successful offering of an issue of MuniFund Term Preferred Shares. This new form of preferred securities joins the Variable Rate Demand Preferred securities as vehicles for refinancing existing municipal fund auction rate preferred shares (ARPS). By the beginning of December 2009, six of the leveraged municipal closed-end funds had redeemed all of their outstanding ARPS. Nuveen remains committed to resolving the issues connected with outstanding auction rate preferred shares. Please consult the Nuveen web site for the most recent information on this issue and all recent developments on your Nuveen Funds at: www.nuveen.com. On behalf of the other members of your Fund's Board, we look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Robert P. Bremner ---------------------- Robert P. Bremner Chairman of the Board December 21, 2009 Nuveen Investments 1 Fund Merger and Management Consolidation Effective October 16, 2009, four Nuveen Florida closed-end Funds were reorganized into three existing Nuveen national closed-end municipal bond Funds (collectively, the "Reorganizations"). Each Reorganization was approved by the shareholders of the respective Nuveen Florida and national Funds. The closed-end Funds within this shareholder report (NIO) and (NEA) have been merged as follows: Nuveen Insured Florida Premium Income Municipal Fund (NFL) into Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) Nuveen Insured Florida Tax-Free Advantage Municipal Fund (NWF) into Nuveen Insured Tax-Free Advantage Municipal Fund (NEA) Prior to the Reorganization, each Fund provided current income exempt from regular federal income tax, and in the case of NWF and NEA the alternative minimum tax applicable to individuals. The Florida Funds invested primarily in a portfolio of municipal obligations issued by state and local government authorities within the state of Florida or certain U.S. territories. NIO and NEA invest primarily in a portfolio of municipal obligations issued by state and local government authorities or certain U.S. territories. As the surviving Funds, the investment objectives and strategies of NIO and NEA remain unchanged, and the reorganized Funds will pursue their investment objectives and strategies. 2 Nuveen Investments Portfolio Manager's Comments 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) Portfolio manager Paul Brennan discusses U.S. economic and municipal market conditions, key investment strategies, and the twelve-month performance of these six insured Funds. With 20 years of investment experience, including twelve years at Nuveen, Paul assumed portfolio management responsibility for NQI, NIO, NIF, NPX, NVG and NEA in 2006. WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE TWELVE-MONTH REPORTING PERIOD ENDED OCTOBER 31, 2009? During this reporting period, municipal bond prices generally rose as strong cash flows into municipal bond funds combined with tighter supply of new tax-exempt issuance to provide favorable supply and demand conditions. As the period began, there continued to be considerable downward pressure on the economy. In an effort to improve overall economic conditions, the Federal Reserve (Fed) continued to cut interest rates, lowered the fed funds rate, to a target range of zero to 0.25% in December 2008, the lowest level on record. In February 2009, the federal government augmented its efforts to boost the economy by passing a $787 billion stimulus package, which joined the $700 billion financial industry rescue package it had passed in late 2008. In March 2009, the Fed announced that, in addition to maintaining the current rate, it would buy $300 billion in long-term Treasury securities in an effort to support private credit markets and up to an additional $750 billion in agency mortgage-backed securities to bolster the credit and housing markets. In recent months, the measures taken by the Fed and others to ease the economic recession have produced some incipient signs of improvement. In the third quarter of 2009, the U.S. economy, as measured by the U.S. gross domestic product (GDP), posted positive growth (2.8% annualized) for the first time since the second quarter of 2008. Housing prices also provided a bright spot between June and September 2009 by recording four consecutive months of positive returns, the first following three years of decline. At the same time, inflation remained muted, as the Consumer Price Index (CPI), CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGER AS OF THE DATE OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS, AND THE VIEWS EXPRESSED HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND OTHER FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE ANY FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN. Nuveen Investments 3 reflecting a 14% drop in energy prices, fell 0.2% year-over-year as of October 2009. This marked the seventh straight month that consumer prices dropped from their levels of a year earlier, the longest such decline since 1954-1955. The core CPI (which excludes food and energy) rose 1.7% over the year, within the Fed's unofficial objective of 2.0% or lower for this measure. However, the economy continued to be stressed by weakness in the labor markets. October 2009 marked the 22nd consecutive month of net job losses, with a total of 7.3 million jobs lost since the recession began in December 2007. This is the biggest decline since the Great Depression. The national unemployment rate for October 2009 was 10.2%, a 26-year high, up from 6.6% in October 2008. Municipal market conditions began to show general signs of improvement in mid-December 2008, and municipal bonds continued to improve throughout most of 2009. This trend was bolstered by the reduced supply of tax-exempt municipal debt in the marketplace, due in part to the introduction of the Build America Bond program in April 2009. Build America Bonds are a new class of taxable municipal debt created as part of the February 2009 economic stimulus package. These bonds offer municipal issuers a federal subsidy equal to 35% of the security's interest payments, and therefore provide issuers with an attractive alternative to traditional tax-exempt debt. As of October 31, 2009, taxable Build America Bonds issuance totaled $48.5 billion, accounting for almost 20% of new bonds issued in the municipal market during the period since their introduction. Over the twelve months ended October 31, 2009, tax-exempt municipal bond issuance nationwide totaled $404.5 billion, a drop of approximately 10% compared with the twelve-month period ended October 31, 2008. As mentioned earlier, demand for tax-exempt bonds was strong, especially on the part of individual investors and broker/dealers. The combination of lower tax-exempt supply and increased demand provided support for municipal bond prices. WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS? During the majority of this twelve-month period, the tax-exempt municipal bond market was characterized by strong demand, constrained supply and generally improving valuations. Due largely to the decrease in new tax-exempt supply, investment activity in these Funds was more limited than usual. While there was considerable issuance of Build America Bonds over the last half of this period, these bonds do not represent appropriate investment opportunities for the Funds because their interest payments are considered taxable income. 4 Nuveen Investments The already tight supply situation was further compounded for these Funds by the severe decline in the issuance of insured bonds. During the first ten months of 2009, new insured securities accounted for less than 10% of national issuance, compared with 20% during the first ten months of 2008 and historical levels of approximately 50%. The limited liquidity of many insured bonds, which resulted from concerns about the financial health of municipal bond insurers, also dampened trading activity. As noted in prior shareholder reports and press releases, to better position the Funds for the current environment while maintaining their insured nature, the Board of Directors/Trustees approved changes to the investment policies of these six insured Funds. These policy changes also were designed to help increase portfolio management flexibility. Previously, all of the net assets of NQI, NIO, NIF and NPX were invested in insured bonds rated AAA, while NVG and NEA have been able to invest up to 20% of their assets in uninsured investment-grade quality securities since their inceptions in 2002. The new policies require that at least 80% of the Funds' net assets must be invested in insured municipal bonds guaranteed by insurers rated A or better. At the same time, at least 80% of the Funds' net assets must be invested in municipal bonds rated AA or better (with or without insurance), deemed to be of comparable quality, or backed by an escrow or trust containing sufficient U.S. government or government agency securities. The Funds may also invest up to 20% of their net assets in uninsured municipal bonds rated A to BBB or deemed to be of comparable quality. As of October 31, 2009, all proposed policy changes had been approved by each Fund's shareholders. These changes have helped to bring the Funds' policies more in line with current market conditions and should facilitate investing going forward. During this period, our investment activity continued to focus on finding relative value by taking a bottom-up approach to discover undervalued sectors and individual credits with the potential to perform well over the long term. Generally, we were purchasing bonds in two categories: essential services and, to a lesser degree, health care. In essential services, we added bonds that financed water and sewer projects, utilities, schools, and roads, most of which were rated AA or higher and/or insured. We also purchased bonds in the health care sector, where supply was more plentiful because hospitals generally do not qualify for the Build America Bond program and so must continue to issue bonds in the tax-exempt municipal market. In addition, many hospitals were issuing fixed rate bonds in order to refinance and retire outstanding debt that had initially been issued as variable rate debt. Much of this issuance offered the longer maturities we were looking to add to our portfolio because we believed that extending duration would be rewarded by the market. Nuveen Investments 5 Cash for new purchases during this period was generated largely by maturing or called bonds. In addition, we also sold some pre-refunded holdings in order to reduce the Funds' exposure to this sector. All of these Funds continued to use inverse floating rate securities. (1) We employ inverse floaters as a form of leverage for a variety of reasons, including duration management, income enhancement and total return enhancements. During the first part of the period, NVG also invested in additional types of derivative instruments(2) designed to help extend its duration. These derivatives were removed by the end of the reporting period. ASSETS ACQUIRED IN THE REORGANIZATION As mentioned on page two, on October 16, 2009, following approval by shareholders, the Nuveen Insured Florida Premium Income Municipal Fund (NFL) was reorganized into NIO and the Nuveen Insured Florida Tax-Free Advantage Municipal Fund (NWF) was merged into NEA. In the Reorganizations, NIO and NEA acquired substantially all of the assets and liabilities of these Funds with which they were merged in a tax-free transaction in exchange for an equal aggregate value of newly-issued common shares. In general, the securities acquired through these Reorganizations matched the investment parameters and strategies of NIO and NEA and therefore required little immediate portfolio activity. 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. AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE FOR PERIODS ENDED 10/31/09
1-YEAR 5-YEAR 10-YEAR ---------------------------------------------------------------------------------- NQI 23.65% 2.64% 5.93% NIO 21.18% 3.10% 6.00% NIF 20.90% 3.27% 6.01% NPX 20.15% 2.97% 6.09% NVG 21.54% 4.18% N/A NEA 23.05% 4.82% N/A Standard & Poor's (S&P) Insured Municipal Bond Index(3) 14.43% 3.91% 5.89% Lipper Insured Municipal Debt Funds Average(4) 24.28% 3.24% 5.98% ----------------------------------------------------------------------------------
For the twelve months ended October 31, 2009, the total returns on common share net asset value (NAV) for all six of these Nuveen Funds exceeded the returns for the Standard & Poor's (S&P) Insured Municipal Bond Index. All of the Funds lagged the Lipper Insured Municipal Debt Funds Average for the same period. (1) An inverse floating rate security, also known as an inverse floater, 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 report. (2) Each Fund may invest in derivative instruments such as forwards, futures, options and swap transactions. For additional information on the derivative instruments in which each Fund was invested during and at the end of the reporting period, see the Portfolio of Investments, Financial Statements, and Notes to Financial Statements sections of this report. Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. For additional information, see the individual Performance Overview for your Fund in this report. (3) The Standard & Poor's (S&P) Insured Municipal Bond Index is an unleveraged, market value-weighted index designed to measure the performance of the insured U.S. municipal bond market. This index does not reflect any initial or ongoing expenses and is not available for direct investment. (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: 1-year, 23 funds; 5-year, 21 funds; and 10-year, 16 funds. Fund and Lipper returns assume reinvestment of dividends. You cannot invest directly in a Lipper Average. 6 Nuveen Investments Key management factors that influenced the Funds' returns during this period included yield curve and duration positioning, credit exposure, and sector allocation. In addition, leverage was an important positive factor affecting the Funds' performances over this period. The impact of leverage is discussed in more detail on page seven. During this period, yields on tax-exempt bonds generally declined and bond prices rose, especially at the longer end of the municipal yield curve. As a result, longer-term bonds generally outperformed credits with shorter maturities. During this period, the Funds' varying levels of exposure to the longer part of the yield curve influenced their performances relative to one another. NQI, which had the longest duration among these Funds, benefited the most from its duration and yield curve positioning, while NPX, which had more exposure to the shorter end of the yield curve, was relatively less well positioned in terms of duration and yield curve. As mentioned earlier, our duration strategies in NVG included using derivative positions during the first part of this period to synthetically extend the duration of this Fund. These derivative positions performed well and made a positive contribution to NVG's total return performance, while yield curve positioning played an important role in performance, credit exposure was also a significant factor. As noted earlier, demand for municipal bonds increased among both institutional and individual investors during this period. This increase was driven by a variety of factors, including concerns about potential tax increases, the need to rebalance portfolio allocations and a growing appetite for additional risk. At the same time, the supply of new tax-exempt municipal securities declined. As investors bid up municipal bond prices, lower-rated and non-rated bonds generally outperformed those rated AAA. In this environment, the Funds' performances benefited from their allocations of bonds rated A, BBB or below, and non-rated bonds. As of October 31, 2009, all of the Funds had exposure to bonds in these ratings categories. In NQI, NIO, NIF and NPX, exposure to these lower-rated categories was generally the result of rating downgrades on municipal bond insurers, rather than the result of any buying by these Funds. NVG and NEA, which have been able to invest up to 20% of their assets in uninsured investment-grade quality securities since their inceptions in 2002, held bonds rated BBB and non-rated bonds resulting from purchases as well as some insurer downgrades. Holdings that generally contributed positively to the Funds' performance included industrial development revenue (IDR), housing and health care bonds. Education, water and sewer, transportation and special tax bonds also outperformed the general municipal market during this period, and zero coupon bonds were another segment of the market that performed very strongly. Nuveen Investments 7 Pre-refunded bonds, which had been one of the top performing segments of the municipal bond market over the past two years, performed especially poorly during this period. This underperformance can be attributed primarily to these bonds' shorter effective maturities and higher credit quality, as they are usually backed by U.S. Treasury securities. IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE One important factor impacting the returns of these Funds relative to the comparative index was the Funds' use of financial leverage. The Funds use leverage because their managers believe that, over time, leveraging provides opportunities for additional income and total returns for common shareholders. However, use of leverage also can expose common shareholders to additional risk -- especially when market conditions are unfavorable. For example, as the prices of securities held by a Fund decline, the negative impact of these valuation changes on common share net asset value and common shareholder total return is magnified by the use of leverage. Conversely, leverage may enhance common share returns during periods when bond prices generally are rising. Over the early part of this period, leverage hampered the performance of the Funds using this strategy. However, leverage made a significant positive contribution to those Funds returns over much of 2009, which can be seen in their twelve-month performance shown on page six. RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES AND FUND POLICY CHANGES Another factor that had an impact on the performance of these Funds was their positions in bonds backed by municipal bond insurers that have experienced downgrades in their credit ratings. At the time this report was prepared, there were no bond insurers rated AAA by more than one of the major rating agencies (Moody's Investor Service, Standard & Poor's (S&P) and Fitch) and at least one rating agency has placed each insurer on "negative credit watch," "credit outlook/watch developing" "credit outlook/watch negative," "credit watch evolving," "rating withdrawn" or "regulatory supervision" which may presage one or more rating reductions for any insurer in the future. By the end of this period, most insured bonds were being valued according to their fundamentals as if they were uninsured. On the whole, the holdings of all of these Funds continued to be well diversified and it is important to note that municipal bonds historically have had a very low rate of default. 8 Nuveen Investments RECENT DEVELOPMENTS REGARDING THE FUNDS' LEVERAGED CAPITAL STRUCTURE As noted in the last several shareholder reports, the auction rate preferred shares issued by many closed-end funds, including these Nuveen Funds, have been hampered by a lack of liquidity since February 2008. Since that time, more auction rate preferred shares have been submitted for sale in their regularly scheduled auctions than there have been offers to buy. In fact, offers to buy have been almost completely non-existent since late February 2008. This means that these auctions have "failed to clear," and that many, or all, of the auction rate preferred shareholders who wanted to sell their shares in these auctions were unable to do so. This lack of liquidity in auction rate preferred shares did not lower the credit quality of these shares, and auction rate 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 rate preferred shares. In the recent market, with short-term rates at multi-generational lows, those maximum rates also have been low. One continuing implication for common shareholders from the auction failures is that each Fund's cost of leverage likely has been incrementally higher at times than it otherwise might have been had the auctions continued to be successful. As a result, each Fund's common share earnings likely have been incrementally lower at times than they otherwise might have been. As noted in past shareholder reports, the Funds' Board of Directors/Trustees authorized a plan to use tender option bonds (TOBs), also known as floating rate securities, to refinance a portion of the Funds' outstanding auction rate preferred shares. The amount of TOBs that a Fund may use varies according to the composition of each Fund's portfolio. Some Funds have a greater ability to use TOBs than others. As of October 31, 2009, some Funds have issued Variable Rate Demand Preferred Shares (VRDP), but these issuances have been limited since it has been difficult to find liquidity facilities on economically viable terms given the constrained credit environment. Some Funds also have issued MuniFund Term Preferred (MTP), a fixed-rate form of preferred stock with a mandatory redemption period of five years. However, the Funds cannot provide any assurance on when the remaining outstanding auction rate preferred shares might be redeemed. Nuveen Investments 9 As of October 31, 2009, the amount of auction rate preferred securities redeemed and/or noticed for redemption by the Funds are as shown in the accompanying table.
AUCTION RATE % OF ORIGINAL PREFERRED SHARES AUCTION RATE FUND REDEEMED AND/OR NOTICED FOR REDEMPTION PREFERRED SHARES AND/OR NOTICED FOR REDEMPTION ------------------------------------------------------------------------------------------------------- NQI $ 72,150,000 22.7% NIO $ 115,525,000* 14.6% NIF $ 30,875,000 19.2% NPX $ 268,900,000 100.0% NVG $ 141,050,000 60.5% NEA $ 24,250,000** 14.0% -------------------------------------------------------------------------------------------------------
* Includes $8,825,000 auction rate preferred shares redeemed by Nuveen Insured Florida Premium Income Municipal Fund (NFL) prior to the Reorganization on October 16, 2009. ** Includes $2,250,000 auction rate preferred shares redeemed by Nuveen Insured Florida Tax-Free Advantage Municipal Fund (NWF) prior to the Reorganization on October 16, 2009. As noted in past shareholder reports, all of NPX's redemptions were achieved through the issuance of Variable Rate Demand Preferred (VRDP) in conjunction with the proceeds from the creation of TOBs. VRDP is a new instrument designed to replace the auction rate preferred shares used as leverage in Nuveen closed-end funds. VRDP is offered only to qualified institutional buyers, defined pursuant to Rule 144A under the Securities Act of 1933. As of October 31, 2009, NPX has $219 million of VRDP outstanding. MUNIFUND TERM PREFERRED SHARES (MTP) During October 2009, NVG successfully completed the issuance of $108 million of 2.95%, Series 2014 MTP. MTP is a new form of closed-end fund preferred shares designed to partially refinance and replace the auction rate preferred shares previously issued by the fund as leverage. The net proceeds from this offering were used to refinance a portion of NVG's outstanding auction rate preferred shares. The newly-issued MTP shares trade on the New York Stock Exchange (NYSE) under the symbol "NVG Pr C." MTP is a fixed-rate form of preferred stock with a mandatory redemption period, in this case, of five years. By issuing MTP, the Fund seeks to take advantage of the current historically low interest rate environment to lock in an attractive federally tax-exempt cost of leverage for a period as long as the term of the MTP. The Fund's managers believe that issuing MTP may help the Fund mitigate the risk of a significant increase in its cost of leverage should short-term interest rates rise sharply in the coming years. As of October 31, 2009, 75 out of the 88 Nuveen closed-end municipal funds that had issued auction rate preferred shares have redeemed, at par, all or a portion of these shares. These redemptions bring the total amount of Nuveen's municipal closed-end funds' auction rate preferred share redemptions to approximately $2.4 billion of the original $11 billion outstanding. 10 Nuveen Investments Subsequent to the reporting period, NEA filed with the Securities and Exchange Commission (SEC) a registration statement seeking to register MTP. This registration statement, declared effective by the SEC, enables the Fund to issue to the public shares of MTP to refinance all or a portion of NEA's auction rate preferred shares. The issuance of MTP by NEA is subject to market conditions. There is no assurance that these MTP shares will be issued. For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at:http://www.nuveen.com/ResourceCenter/AuctionRatePreferred. aspx. Nuveen Investments 11 Common Share Dividend and Share Price Information During the twelve-month reporting period ended October 31, 2009, NIF had three monthly dividend increases and NQI, NIO, NPX, NVG and NEA each had two monthly dividend increases. Due to normal portfolio activity, common shareholders of NIO received a net ordinary income distribution of $0.0010 per share at the end of December 2008. All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund's past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund's NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of October 31, 2009, all of the Funds in this report had positive UNII balances for both tax and financial statement purposes. COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION As of October 31, 2009, the aggregate amount of common shares repurchased by NVG and NEA are as shown in the accompanying table. Since the inception of the Funds' repurchase program, NQI, NIO, NIF, and NPX have not repurchased any of their outstanding common shares. COMMON SHARES % OF OUTSTANDING FUND REPURCHASED COMMON SHARES ------------------------------------------------------------------------------- NVG 10,400 0.0% NEA 19,300* 0.1% ------------------------------------------------------------------------------- * Does not include common shares repurchase activity of Nuveen Insured Florida Tax-Free Advantage Municipal Fund (NWF) prior to Reorganization on October 16, 2009. During the twelve-month reporting period, NVG's and NEA's common shares were repurchased at a weighted average price and a weighted average discount per common share as shown in the accompanying table. WEIGHTED AVERAGE WEIGHTED AVERAGE PRICE PER SHARE DISCOUNT PER SHARE FUND REPURCHASED REPURCHASED ------------------------------------------------------------------------------- NVG $ 11.53 16.82% NEA $ 10.98 18.03% -------------------------------------------------------------------------------- 12 Nuveen Investments As of October 31, 2009, the Funds' common share prices were trading at (-) discounts to their common share NAVs as shown in the accompanying table. 10/31/09 TWELVE-MONTH AVERAGE FUND (-) DISCOUNT (-) DISCOUNT -------------------------------------------------------------------------------- NQI -2.28% -5.17% NIO -8.72% -10.01% NIF -8.90% -9.95% NPX -8.49% -10.70% NVG -6.42% -10.23% NEA -6.52% -9.04% -------------------------------------------------------------------------------- Nuveen Investments 13 NQI Performance OVERVIEW | Nuveen Insured Quality Municipal Fund, Inc. as of October 31, 2009 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 13.30 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.61 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -2.28% -------------------------------------------------------------------------------- Market Yield 6.14% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(3) 8.53% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 521,216 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.34 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 10.67 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 12/19/90) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 26.98% 23.65% -------------------------------------------------------------------------------- 5-Year 2.19% 2.64% -------------------------------------------------------------------------------- 10-Year 6.43% 5.93% -------------------------------------------------------------------------------- STATES (as a % of total investments) -------------------------------------------------------------------------------- California 19.1% -------------------------------------------------------------------------------- Texas 11.1% -------------------------------------------------------------------------------- Illinois 10.6% -------------------------------------------------------------------------------- New York 8.8% -------------------------------------------------------------------------------- Washington 7.7% -------------------------------------------------------------------------------- Florida 5.5% -------------------------------------------------------------------------------- Kentucky 4.0% -------------------------------------------------------------------------------- Ohio 3.0% -------------------------------------------------------------------------------- Louisiana 2.4% -------------------------------------------------------------------------------- Arizona 2.3% -------------------------------------------------------------------------------- Hawaii 2.2% -------------------------------------------------------------------------------- Colorado 2.1% -------------------------------------------------------------------------------- Massachusetts 1.8% -------------------------------------------------------------------------------- Other 19.4% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) -------------------------------------------------------------------------------- Tax Obligation/Limited 20.6% -------------------------------------------------------------------------------- U.S. Guaranteed 18.6% -------------------------------------------------------------------------------- Transportation 18.5% -------------------------------------------------------------------------------- Tax Obligation/General 12.9% -------------------------------------------------------------------------------- Health Care 9.6% -------------------------------------------------------------------------------- Utilities 7.4% -------------------------------------------------------------------------------- Other 12.4% -------------------------------------------------------------------------------- INSURERS (as a % of total Insured investments) -------------------------------------------------------------------------------- NPFG(4) 34.0% -------------------------------------------------------------------------------- FSA 22.8% -------------------------------------------------------------------------------- FGIC 20.9% -------------------------------------------------------------------------------- AMBAC 18.9% -------------------------------------------------------------------------------- Other 3.4% -------------------------------------------------------------------------------- CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1,2) [PIE CHART] Insured 75% U.S. Guaranteed* 19% FHA/GNMA Guaranteed 6% * U.S. Guaranteed includes 19% (as a % of total investments) of Insured securities. 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Nov $ 0.0615 Dec 0.0615 Jan 0.0615 Feb 0.0615 Mar 0.0615 Apr 0.0615 May 0.0625 Jun 0.0625 Jul 0.0625 Aug 0.0625 Sep 0.068 Oct 0.068 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 11/01/08 $ 11.05 11.79 10.95 10.13 10.43 9.92 8.78 9.86 9.89 10.37 11.33 11.58 11.4 11.57 12.09 12.04 11.06 11.84 11.44 11.6 11.72 12.1 12.02 11.84 11.93 12.17 12.05 12.08 12.18 12.5 12.53 12.23 12.0299 12.26 12.32 12.46 12.67 12.59 12.8 12.98 12.85 12.55 12.93 12.72 13.1 13.24 13.46 13.54 13.75 13.64 13 13.38 10/31/09 13.3 (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Comments or 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) Primarily all of the Fund's net assets are invested in municipal securities that guarantee the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 - Insurance, for more information. (3) 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. (4) MBIA's public finance subsidiary. 14 Nuveen Investments NIO Performance OVERVIEW | Nuveen Insured Municipal Opportunity Fund, Inc. as of October 31, 2009 CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1,2) [PIE CHART] Insured 77% U.S. Guaranteed* 21% FHA/FNMA/GNMA Guaranteed 2% * U.S. Guaranteed includes 18% (as a % of total investments) of Insured securities. 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(4) [BAR CHART] Nov $ 0.059 Dec 0.059 Jan 0.059 Feb 0.059 Mar 0.059 Apr 0.059 May 0.0605 Jun 0.0605 Jul 0.0605 Aug 0.0605 Sep 0.0665 Oct 0.0665 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 11/01/08 $ 11.3 11.32 11.4199 9.46 10.5 9.8999 8.93 10.01 10.51 10.97 11.77 12.01 11.45 11.7 12.03 12 11.24 11.87 11.1 11.64 11.78 11.72 11.78 11.69 11.82 12.09 12.15 12.31 12.4 12.54 12.58 12.4 11.99 12.09 12.3 12.14 12.55 12.42 12.7 12.68 12.69 12.72 12.96 13.22 13.4 13.41 13.55 13.65 13.89 13.64 13 13.22 10/31/09 12.98 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 12.98 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.22 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -8.72% -------------------------------------------------------------------------------- Market Yield 6.15% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(3) 8.54% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 1,358,844 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.04 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 10.29 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 9/19/91) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 23.62% 21.18% -------------------------------------------------------------------------------- 5-Year 1.61% 3.10% -------------------------------------------------------------------------------- 10-Year 6.09% 6.00% -------------------------------------------------------------------------------- STATES (as a % of total investments) -------------------------------------------------------------------------------- Florida 17.2% -------------------------------------------------------------------------------- California 16.7% -------------------------------------------------------------------------------- Texas 6.9% -------------------------------------------------------------------------------- New York 4.4% -------------------------------------------------------------------------------- Colorado 3.8% -------------------------------------------------------------------------------- Nevada 3.7% -------------------------------------------------------------------------------- South Carolina 3.5% -------------------------------------------------------------------------------- Michigan 3.5% -------------------------------------------------------------------------------- Illinois 3.4% -------------------------------------------------------------------------------- Alabama 3.3% -------------------------------------------------------------------------------- Massachusetts 3.1% -------------------------------------------------------------------------------- Louisiana 2.9% -------------------------------------------------------------------------------- Washington 2.6% -------------------------------------------------------------------------------- Ohio 2.4% -------------------------------------------------------------------------------- Indiana 2.0% -------------------------------------------------------------------------------- Kentucky 1.9% -------------------------------------------------------------------------------- Other 18.7% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) -------------------------------------------------------------------------------- Tax Obligation/Limited 24.8% -------------------------------------------------------------------------------- U.S. Guaranteed 20.9% -------------------------------------------------------------------------------- Transportation 11.8% -------------------------------------------------------------------------------- Tax Obligation/General 11.6% -------------------------------------------------------------------------------- Water and Sewer 10.4% -------------------------------------------------------------------------------- Utilities 9.0% -------------------------------------------------------------------------------- Health Care 5.0% -------------------------------------------------------------------------------- Other 6.5% -------------------------------------------------------------------------------- INSURERS (as a % of total Insured investments) -------------------------------------------------------------------------------- NPFG(5) 31.3% -------------------------------------------------------------------------------- FGIC 23.6% -------------------------------------------------------------------------------- FSA 19.4% -------------------------------------------------------------------------------- AMBAC 17.8% -------------------------------------------------------------------------------- Other 7.9% -------------------------------------------------------------------------------- (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Comments 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) Primarily all of the Fund's net assets are invested in municipal securities that guarantee the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 - Insurance, for more information. (3) 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. (4) The Fund paid shareholders a net ordinary income distribution in December 2008 of $0.0010 per share. (5) MBIA's public finance subsidiary. Nuveen Investments 15 NIF Performance OVERVIEW | Nuveen Premier Insured Municipal Income Fund, Inc. as of October 31, 2009 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 13.10 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.38 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -8.90% -------------------------------------------------------------------------------- Market Yield 6.05% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(3) 8.40% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 279,312 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 13.21 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 9.24 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 12/19/91) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 24.07% 20.90% -------------------------------------------------------------------------------- 5-Year 2.16% 3.27% -------------------------------------------------------------------------------- 10-Year 6.16% 6.01% -------------------------------------------------------------------------------- STATES (as a % of total investments) -------------------------------------------------------------------------------- California 20.2% -------------------------------------------------------------------------------- Washington 11.2% -------------------------------------------------------------------------------- Illinois 11.0% -------------------------------------------------------------------------------- Texas 8.5% -------------------------------------------------------------------------------- Colorado 6.5% -------------------------------------------------------------------------------- New York 4.6% -------------------------------------------------------------------------------- Nevada 2.9% -------------------------------------------------------------------------------- Oregon 2.7% -------------------------------------------------------------------------------- Indiana 2.6% -------------------------------------------------------------------------------- Hawaii 2.5% -------------------------------------------------------------------------------- Florida 2.4% -------------------------------------------------------------------------------- Michigan 2.4% -------------------------------------------------------------------------------- Pennsylvania 2.2% -------------------------------------------------------------------------------- Georgia 2.2% -------------------------------------------------------------------------------- Other 18.1% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) -------------------------------------------------------------------------------- Tax Obligation/General 24.5% -------------------------------------------------------------------------------- U.S. Guaranteed 18.9% -------------------------------------------------------------------------------- Transportation 17.6% -------------------------------------------------------------------------------- Tax Obligation/Limited 16.2% -------------------------------------------------------------------------------- Utilities 6.5% -------------------------------------------------------------------------------- Education and Civic Organizations 5.4% -------------------------------------------------------------------------------- Water and Sewer 5.3% -------------------------------------------------------------------------------- Other 5.6% -------------------------------------------------------------------------------- INSURERS (as a % of total Insured investments) -------------------------------------------------------------------------------- FGIC 34.1% -------------------------------------------------------------------------------- NPFG(4) 30.9% -------------------------------------------------------------------------------- FSA 19.9% -------------------------------------------------------------------------------- AMBAC 14.2% -------------------------------------------------------------------------------- Other 0.9% -------------------------------------------------------------------------------- CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1,2) [PIE CHART] Insured 79% U.S. Guaranteed* 19% FHA/GNMA Guaranteed 2% * U.S. Guaranteed includes 10% (as a % of total investments) of Insured securities. 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Nov $ 0.0555 Dec 0.0555 Jan 0.0555 Feb 0.0555 Mar 0.06 Apr 0.06 May 0.0635 Jun 0.0635 Jul 0.0635 Aug 0.0635 Sep 0.066 Oct 0.066 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 11/01/08 $ 11.21 11.2 10.98 9.72 10.25 9.96 8.9 10.06 10.54 11.13 12 11.99 11.9 12.28 12.44 12.63 11.38 12.13 11.79 11.83 12.02 12.13 12.4512 12.49 12.41 12.62 12.73 12.81 12.78 12.9 12.76 12.75 12.34 12.56 12.71 12.55 12.96 12.85 13.08 13.18 13.26 13.23 13.37 13.4616 13.51 13.61 13.72 13.79 13.9901 13.71 13.1 13.38 10/31/09 13.1 (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Comments 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) At least 80% of the Fund's net assets are invested in municipal securities that guarantee the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 - Insurance, for more information. (3) 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. (4) MBIA's public finance subsidiary. 16 Nuveen Investments NPX Performance OVERVIEW | Nuveen Insured Premium Income Municipal Fund 2 as of October 31, 2009 CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1,2) [PIE CHART] Insured 81% U.S. Guaranteed* 17% FHA/GNMA Guaranteed 1% AA (Uninsured) 1% U.S. Guaranteed includes 17% (as a % of total investments) of Insured securities. 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Nov $ 0.0515 Dec 0.0515 Jan 0.0515 Feb 0.0515 Mar 0.0515 Apr 0.0515 May 0.0595 Jun 0.0595 Jul 0.0595 Aug 0.0595 Sep 0.061 Oct 0.061 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 11/01/08 $ 9.68 10.0596 9.71 8.69 9.09 8.27 8.08 8.86 9.15 9.66 10.44 10.44 10.46 10.53 10.95 10.94 10.08 10.61 10.4 10.29 10.44 10.63 10.6206 10.75 10.84 10.99 11.16 11.3 11.39 11.51 11.36 11.42 10.98 11.22 11.34 11.2 11.57 11.41 11.54 11.65 11.83 11.77 11.96 12 12.11 12.25 12.41 12.32 12.54 12.34 11.96 12.05 10/31/09 11.86 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 11.86 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 12.96 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -8.49% -------------------------------------------------------------------------------- Market Yield 6.17% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(3) 8.57% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 484,069 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 14.80 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 8.99 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 7/22/93) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 31.78% 20.15% -------------------------------------------------------------------------------- 5-Year 2.11% 2.97% -------------------------------------------------------------------------------- 10-Year 6.32% 6.09% -------------------------------------------------------------------------------- STATES (as a % of total investments) -------------------------------------------------------------------------------- California 14.8% -------------------------------------------------------------------------------- Texas 12.0% -------------------------------------------------------------------------------- Pennsylvania 6.9% -------------------------------------------------------------------------------- Colorado 6.1% -------------------------------------------------------------------------------- New York 6.1% -------------------------------------------------------------------------------- Hawaii 5.2% -------------------------------------------------------------------------------- Washington 4.8% -------------------------------------------------------------------------------- Wisconsin 4.0% -------------------------------------------------------------------------------- Louisiana 3.3% -------------------------------------------------------------------------------- New Jersey 3.0% -------------------------------------------------------------------------------- Indiana 2.9% -------------------------------------------------------------------------------- North Dakota 2.5% -------------------------------------------------------------------------------- Georgia 2.4% -------------------------------------------------------------------------------- Alabama 2.3% -------------------------------------------------------------------------------- Oregon 2.1% -------------------------------------------------------------------------------- Illinois 2.1% -------------------------------------------------------------------------------- Other 19.5% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) -------------------------------------------------------------------------------- Utilities 20.7% -------------------------------------------------------------------------------- U.S. Guaranteed 16.7% -------------------------------------------------------------------------------- Tax Obligation/Limited 14.8% -------------------------------------------------------------------------------- Transportation 10.6% -------------------------------------------------------------------------------- Tax Obligation/General 10.3% -------------------------------------------------------------------------------- Water and Sewer 9.4% -------------------------------------------------------------------------------- Education and Civic Organizations 7.6% -------------------------------------------------------------------------------- Health Care 7.0% -------------------------------------------------------------------------------- Other 2.9% -------------------------------------------------------------------------------- INSURERS (as a % of total Insured investments) -------------------------------------------------------------------------------- AMBAC 29.9% -------------------------------------------------------------------------------- NPFG(4) 25.4% -------------------------------------------------------------------------------- FGIC 21.9% -------------------------------------------------------------------------------- FSA 19.5% -------------------------------------------------------------------------------- Other 3.3% -------------------------------------------------------------------------------- (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Comments 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) Primarily all of the Fund's net assets are invested in municipal securities that guarantee the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 - Insurance, for more information. (3) 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. (4) MBIA's public finance subsidiary. Nuveen Investments 17 NVG Performance OVERVIEW | Nuveen Insured Dividend Advantage Municipal Fund as of October 31, 2009 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 13.85 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.80 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -6.42% -------------------------------------------------------------------------------- Market Yield 6.06% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(3) 8.42% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 441,207 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 12.89 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 10.26 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 28.72% 21.54% -------------------------------------------------------------------------------- 5-Year 4.43% 4.18% -------------------------------------------------------------------------------- Since Inception 5.08% 6.27% -------------------------------------------------------------------------------- STATES (as a% of total municipal bonds) -------------------------------------------------------------------------------- Texas 15.6% -------------------------------------------------------------------------------- Washington 10.5% -------------------------------------------------------------------------------- Indiana 10.5% -------------------------------------------------------------------------------- California 10.4% -------------------------------------------------------------------------------- Florida 7.9% -------------------------------------------------------------------------------- Illinois 7.5% -------------------------------------------------------------------------------- Tennessee 6.8% -------------------------------------------------------------------------------- New York 3.9% -------------------------------------------------------------------------------- Colorado 3.7% -------------------------------------------------------------------------------- Pennsylvania 3.0% -------------------------------------------------------------------------------- Alaska 2.6% -------------------------------------------------------------------------------- Other 17.6% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a% of total investments) -------------------------------------------------------------------------------- U.S. Guaranteed 24.5% -------------------------------------------------------------------------------- Tax Obligation/Limited 15.9% -------------------------------------------------------------------------------- Transportation 15.2% -------------------------------------------------------------------------------- Tax Obligation/General 12.6% -------------------------------------------------------------------------------- Utilities 9.1% -------------------------------------------------------------------------------- Health Care 7.6% -------------------------------------------------------------------------------- Water and Sewer 6.1% -------------------------------------------------------------------------------- Other 9.0% -------------------------------------------------------------------------------- INSURERS (as a% of total Insured investments) -------------------------------------------------------------------------------- NPFG(4) 32.8% -------------------------------------------------------------------------------- FSA 23.6% -------------------------------------------------------------------------------- AMBAC 21.4% -------------------------------------------------------------------------------- FGIC 17.2% -------------------------------------------------------------------------------- Other 5.0% -------------------------------------------------------------------------------- CREDIT QUALITY (AS A % OF TOTAL MUNICIPAL BONDS)(1,2) [PIE CHART] Insured 63% U.S. Guaranteed* 25% FHA Guaranteed 3% AAA (Uninsured) 3% AA (Uninsured) 5% BBB (Uninsured) 1% * U.S. Guaranteed includes 25% (as a % of total municipal bonds) of Insured securities. 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Nov $ 0.06 Dec 0.06 Jan 0.06 Feb 0.06 Mar 0.06 Apr 0.06 May 0.0645 Jun 0.0645 Jul 0.0645 Aug 0.0645 Sep 0.07 Oct 0.07 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 11/01/08 $ 11.5 11.62 11.17 9.97 11 9.83 9.45 10.96 10.75 11.6 12.55 12.7 12.13 12.52 12.88 12.63 11.61 12.21 11.72 11.97 12.1 12.4 12.29 12.41 12.395 12.61 12.62 12.84 13.01 13.05 13.07 12.99 12.55 12.89 12.9 12.8 12.98 13.12 13.28 13.42 13.33 13.32 13.59 13.64 13.73 13.95 14.12 14.19 14.39 14.23 13.68 13.89 10/31/09 13.85 (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Comments 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) At least 80% of the Fund's net assets are invested in municipal securities that guarantee the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 - Insurance, for more information. (3) 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. (4) MBIA's public finance subsidiary. 18 Nuveen Investments NEA Performance OVERVIEW | Nuveen Insured Tax-Free Advantage Municipal Fund as of October 31, 2009 CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1,2) [PIE CHART] Insured 69% U.S. Guaranteed* 23% AAA (Uninsured) 3% AA (Uninsured) 2% A (Uninsured) 1% BBB (Uninsured) 1% B (Uninsured) 1% * U.S. Guaranteed includes 19% (as a % of total investments) of Insured securities. 2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Nov $ 0.059 Dec 0.059 Jan 0.059 Feb 0.059 Mar 0.059 Apr 0.059 May 0.062 Jun 0.062 Jul 0.062 Aug 0.062 Sep 0.065 Oct 0.065 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE CHART] 11/01/08 $ 11.18 11.6 10.4501 9.94 11.4086 9.57 8.93 10.056 10.4 10.97 12.1 11.76 11.54 11.92 12.37 12.08 11.03 11.84 11.54 11.68 11.58 11.87 12.01 12.2 12.01 12.33 12.56 12.82 12.75 12.66 12.97 12.9 12.42 12.75 12.75 12.73 12.82 12.81 12.79 13.05 13.1 13.04 13.2399 13.3406 13.48 13.57 13.75 14.11 14.45 14.28 13.48 13.5999 10/31/09 13.48 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 13.48 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.42 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -6.52% -------------------------------------------------------------------------------- Market Yield 5.79% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(3) 8.04% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 320,587 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.06 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 9.14 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 11/21/02) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 25.41% 23.05% -------------------------------------------------------------------------------- 5-Year 3.46% 4.82% -------------------------------------------------------------------------------- Since Inception 4.10% 5.63% -------------------------------------------------------------------------------- STATES (as a% of total investments) -------------------------------------------------------------------------------- Florida 15.9% -------------------------------------------------------------------------------- California 14.7% -------------------------------------------------------------------------------- Texas 6.9% -------------------------------------------------------------------------------- New York 6.8% -------------------------------------------------------------------------------- Michigan 6.7% -------------------------------------------------------------------------------- Washington 6.4% -------------------------------------------------------------------------------- Pennsylvania 5.0% -------------------------------------------------------------------------------- Indiana 4.9% -------------------------------------------------------------------------------- Alabama 4.9% -------------------------------------------------------------------------------- South Carolina 3.8% -------------------------------------------------------------------------------- Wisconsin 3.7% -------------------------------------------------------------------------------- Colorado 3.3% -------------------------------------------------------------------------------- Other 17.0% -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a% of total investments) -------------------------------------------------------------------------------- Tax Obligation/Limited 26.9% -------------------------------------------------------------------------------- U.S. Guaranteed 23.4% -------------------------------------------------------------------------------- Tax Obligation/General 11.9% -------------------------------------------------------------------------------- Water and Sewer 8.7% -------------------------------------------------------------------------------- Health Care 8.2% -------------------------------------------------------------------------------- Utilities 8.1% -------------------------------------------------------------------------------- Transportation 7.2% -------------------------------------------------------------------------------- Education and Civic Organizations 5.0% -------------------------------------------------------------------------------- Other 0.6% -------------------------------------------------------------------------------- INSURERS (as a% of total Insured investments) -------------------------------------------------------------------------------- NPFG(4) 32.7% -------------------------------------------------------------------------------- AMBAC 29.8% -------------------------------------------------------------------------------- FSA 15.7% -------------------------------------------------------------------------------- FGIC 11.8% -------------------------------------------------------------------------------- SYNCORA GTY 5.2% -------------------------------------------------------------------------------- Other 4.8% -------------------------------------------------------------------------------- (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Comments 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) At least 80% of the Fund's net assets are invested in municipal securities that guarantee the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 - Insurance, for more information. (3) 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. (4) MBIA's public finance subsidiary. Nuveen Investments 19 NQI | Shareholder Meeting Report A special meeting of shareholders for NIO and NEA was held in the offices of Nuveen Investments on May 15, 2009; at this meeting the shareholders were asked to vote to approve an Agreement and Plan of Reorganization. The meeting was subsequently adjourned to June 17, 2009, and additionally adjourned to July 24, 2009 and to July 31, 2009. The annual meeting of shareholders was held on July 28, 2009, in the Lobby Conference Room, 333 West Wacker Drive, Chicago, IL 60606; at this meeting the shareholders were asked to vote on the election of Board Members, the elimination of Fundamental Investment Policies and the approval of new Fundamental Investment Policies. The meeting for NQI, NIO, NIF, NPX and NVG was subsequently adjourned to September 1, 2009, and then adjourned to October 13, 2009, for NQI, NIO, NPX and NVG. NQI -------------------------------------------------------------------------------- Common and MuniPreferred MuniPreferred shares voting shares voting together together as a class as a class -------------------------------------------------------------------------------- TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICIES RELATING TO DERIVATIVES AND SHORT SALES. For 18,504,664 4,389 Against 1,587,299 669 Abstain 717,345 21 Broker Non-Votes 5,777,701 515 -------------------------------------------------------------------------------- Total 26,587,009 5,594 ================================================================================ TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO INVESTING IN OTHER INVESTMENT COMPANIES. For 18,749,972 4,339 Against 1,355,621 719 Abstain 703,715 21 Broker Non-Votes 5,777,701 515 -------------------------------------------------------------------------------- Total 26,587,009 5,594 ================================================================================ TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 18,619,101 4,323 Against 1,484,499 732 Abstain 705,708 24 Broker Non-Votes 5,777,701 515 -------------------------------------------------------------------------------- Total 26,587,009 5,594 ================================================================================ TO APPROVE THE NEW FUNDAMENTAL POLICY FOR THE FUND RELATING TO COMMODITIES. For 18,601,314 4,384 Against 1,436,796 671 Abstain 771,198 24 Broker Non-Votes 5,777,701 515 -------------------------------------------------------------------------------- Total 26,587,009 5,594 ================================================================================ TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO TAX-EXEMPT SECURITIES. For 18,567,910 4,390 Against 1,468,041 665 Abstain 773,357 24 Broker Non-Votes 5,777,701 515 -------------------------------------------------------------------------------- Total 26,587,009 5,594 ================================================================================ TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO TAX-EXEMPT SECURITIES. For 18,591,481 4,390 Against 1,443,558 665 Abstain 774,269 24 Broker Non-Votes 5,777,701 515 -------------------------------------------------------------------------------- Total 26,587,009 5,594 ================================================================================ 20 Nuveen Investments NQI -------------------------------------------------------------------------------- Common and MuniPreferred MuniPreferred shares voting shares voting together together as a class as a class -------------------------------------------------------------------------------- APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: John P. Amboian For 25,185,665 -- Withhold 1,242,458 -- -------------------------------------------------------------------------------- Total 26,428,123 -- ================================================================================ Robert P. Bremner For 25,143,885 -- Withhold 1,284,238 -- -------------------------------------------------------------------------------- Total 26,428,123 -- ================================================================================ Jack B. Evans For 25,172,939 -- Withhold 1,255,184 -- -------------------------------------------------------------------------------- Total 26,428,123 -- ================================================================================ William C. Hunter For -- 5,137 Withhold -- 449 -------------------------------------------------------------------------------- Total -- 5,586 ================================================================================ David J. Kundert For 25,141,288 -- Withhold 1,286,835 -- -------------------------------------------------------------------------------- Total 26,428,123 -- ================================================================================ William J. Schneider For -- 5,149 Withhold -- 437 -------------------------------------------------------------------------------- Total -- 5,586 ================================================================================ Judith M. Stockdale For 25,141,982 -- Withhold 1,286,141 -- -------------------------------------------------------------------------------- Total 26,428,123 -- ================================================================================ Carole E. Stone For 25,156,371 -- Withhold 1,271,752 -- -------------------------------------------------------------------------------- Total 26,428,123 -- ================================================================================ Terence J. Toth For 25,148,034 -- Withhold 1,280,089 -- -------------------------------------------------------------------------------- Total 26,428,123 -- ================================================================================ Nuveen Investments 21 NIO | Shareholder Meeting Report (continued)
NIO -------------------------------------------------------------------------------------------------------------- MuniPreferred shares voting Muni- Muni- Muni- Common together Preferred - Preferred - Preferred - shares as a class Series M Series T Series W -------------------------------------------------------------------------------------------------------------- TO APPROVE AN AGREEMENT AND PLAN OF REORGANIZATION (THE "AGREEMENT"), PURSUANT TO WHICH NUVEEN INSURED FLORIDA PREMIUM INCOME MUNICIPAL FUND (THE "ACQUIRED FUND") WOULD (I) TRANSFER ALL OF ITS ASSETS TO NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC. (THE "ACQUIRING FUND") IN EXCHANGE SOLELY FOR SHARES OF COMMON STOCK AND SHARES OF MUNICIPAL AUCTION RATE CUMULATIVE PREFERRED STOCK ("MUNIPREFERRED"), SERIES W3 AND SERIES TH3, OF THE ACQUIRING FUND AND THE ACQUIRING FUND'S ASSUMPTION OF ALL THE LIABILITIES OF THE ACQUIRED FUND, (II) DISTRIBUTE SUCH SHARES OF THE ACQUIRING FUND TO THE COMMON SHAREHOLDERS AND MUNIPREFERRED, SERIES W AND SERIES TH, SHAREHOLDERS OF THE ACQUIRED FUND AND (III) BE LIQUIDATED, DISSOLVED AND TERMINATED IN ACCORDANCE WITH THE ACQUIRED FUND'S DECLARATION OF TRUST (THE "REORGANIZATION"). For 22,649 3,478 3,451 3,336 Against 856 47 33 82 Abstain 502 5 45 113 -------------------------------------------------------------------------------------------------------------- Total 24,007 3,530 3,529 3,531 ============================================================================================================== TO APPROVE THE ISSUANCE OF ADDITIONAL COMMON SHARES OF NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC. IN CONNECTION WITH THE REORGANIZATION. For 41,906,660 Against 4,455,033 Abstain 1,788,836 -------------------------------------------------------------------------------------------------------------- Total 48,150,529 ============================================================================================================== NIO -------------------------------------------------------------------------------------------------------------- Muni- Muni- Muni- Muni- Preferred - Preferred - Preferred - Preferred - Series W2 Series TH Series TH-2 Series F -------------------------------------------------------------------------------------------------------------- TO APPROVE AN AGREEMENT AND PLAN OF REORGANIZATION (THE "AGREEMENT"), PURSUANT TO WHICH NUVEEN INSURED FLORIDA PREMIUM INCOME MUNICIPAL FUND (THE "ACQUIRED FUND") WOULD (I) TRANSFER ALL OF ITS ASSETS TO NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC. (THE "ACQUIRING FUND") IN EXCHANGE SOLELY FOR SHARES OF COMMON STOCK AND SHARES OF MUNICIPAL AUCTION RATE CUMULATIVE PREFERRED STOCK ("MUNIPREFERRED"), SERIES W3 AND SERIES TH3, OF THE ACQUIRING FUND AND THE ACQUIRING FUND'S ASSUMPTION OF ALL THE LIABILITIES OF THE ACQUIRED FUND, (II) DISTRIBUTE SUCH SHARES OF THE ACQUIRING FUND TO THE COMMON SHAREHOLDERS AND MUNIPREFERRED, SERIES W AND SERIES TH, SHAREHOLDERS OF THE ACQUIRED FUND AND (III) BE LIQUIDATED, DISSOLVED AND TERMINATED IN ACCORDANCE WITH THE ACQUIRED FUND'S DECLARATION OF TRUST (THE "REORGANIZATION"). For 2,705 3,186 3,204 3,289 Against 62 344 66 222 Abstain 58 -- 262 19 -------------------------------------------------------------------------------------------------------------- Total 2,825 3,530 3,532 3,530 ============================================================================================================== TO APPROVE THE ISSUANCE OF ADDITIONAL COMMON SHARES OF NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC. IN CONNECTION WITH THE REORGANIZATION. For Against Abstain -------------------------------------------------------------------------------------------------------------- Total ==============================================================================================================
22 Nuveen Investments NIO -------------------------------------------------------------------------------- Common and MuniPreferred MuniPreferred shares voting shares voting together together as a class as a class -------------------------------------------------------------------------------- TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICIES RELATING TO DERIVATIVES AND SHORT SALES. For 38,209,748 11,506 Against 3,678,279 1,516 Abstain 1,805,948 352 Broker Non-Votes 10,323,145 2,377 -------------------------------------------------------------------------------- Total 54,017,120 15,751 ================================================================================ TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO INVESTING IN OTHER INVESTMENT COMPANIES. For 38,499,569 11,508 Against 3,448,741 1,519 Abstain 1,745,666 347 Broker Non-Votes 10,323,144 2,377 -------------------------------------------------------------------------------- Total 54,017,120 15,751 ================================================================================ TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 38,444,421 11,501 Against 3,509,817 1,518 Abstain 1,739,737 355 Broker Non-Votes 10,323,145 2,377 -------------------------------------------------------------------------------- Total 54,017,120 15,751 ================================================================================ TO APPROVE THE NEW FUNDAMENTAL POLICY FOR THE FUND RELATING TO COMMODITIES. For 38,445,415 11,501 Against 3,437,729 1,518 Abstain 1,810,832 355 Broker Non-Votes 10,323,144 2,377 -------------------------------------------------------------------------------- Total 54,017,120 15,751 ================================================================================ TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO TAX-EXEMPT SECURITIES. For 38,344,729 11,525 Against 3,544,491 1,497 Abstain 1,804,756 352 Broker Non-Votes 10,323,144 2,377 -------------------------------------------------------------------------------- Total 54,017,120 15,751 ================================================================================ TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO TAX-EXEMPT SECURITIES. For 38,560,166 11,543 Against 3,309,092 1,479 Abstain 1,824,718 352 Broker Non-Votes 10,323,144 2,377 -------------------------------------------------------------------------------- Total 54,017,120 15,751 ================================================================================ Nuveen Investments 23 NIO | Shareholder Meeting Report (continued) NIO -------------------------------------------------------------------------------- Common and MuniPreferred MuniPreferred shares voting shares voting together together as a class as a class -------------------------------------------------------------------------------- APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: John P. Amboian For 50,601,245 -- Withhold 3,044,190 -- -------------------------------------------------------------------------------- Total 53,645,435 -- ================================================================================ Robert P. Bremner For 50,577,460 -- Withhold 3,067,975 -- -------------------------------------------------------------------------------- Total 53,645,435 -- ================================================================================ Jack B. Evans For 50,584,642 -- Withhold 3,060,793 -- -------------------------------------------------------------------------------- Total 53,645,435 -- ================================================================================ William C. Hunter For -- 14,100 Withhold -- 1,580 -------------------------------------------------------------------------------- Total -- 15,680 ================================================================================ David J. Kundert For 50,594,367 -- Withhold 3,051,068 -- -------------------------------------------------------------------------------- Total 53,645,435 -- ================================================================================ William J. Schneider For -- 14,108 Withhold -- 1,572 -------------------------------------------------------------------------------- Total -- 15,680 ================================================================================ Judith M. Stockdale For 50,589,662 -- Withhold 3,055,773 -- -------------------------------------------------------------------------------- Total 53,645,435 -- ================================================================================ Carole E. Stone For 50,604,694 -- Withhold 3,040,741 -- -------------------------------------------------------------------------------- Total 53,645,435 -- ================================================================================ Terence J. Toth For 50,602,844 -- Withhold 3,042,591 -- -------------------------------------------------------------------------------- Total 53,645,435 -- ================================================================================ 24 Nuveen Investments NIF | NPX | NVG |
NIF NPX NVG ------------------------------------------------------------------------------------------------------------------------------------ Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class ------------------------------------------------------------------------------------------------------------------------------------ TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICIES RELATING TO DERIVATIVES AND SHORT SALES. For 9,247,663 3,206 19,634,602 2,090 -- -- Against 844,588 381 2,225,144 -- -- -- Abstain 371,081 35 784,269 -- -- -- Broker Non-Votes 2,686,946 72 4,816,699 -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total 13,150,278 3,694 27,460,714 2,090 -- -- ==================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO INVESTING IN OTHER INVESTMENT COMPANIES. For 9,289,658 3,174 19,813,426 2,090 -- -- Against 792,435 414 2,079,895 -- -- -- Abstain 381,239 34 746,514 -- -- -- Broker Non-Votes 2,686,946 72 4,820,879 -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total 13,150,278 3,694 27,460,714 2,090 -- -- ==================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 8,896,338 3,209 19,057,451 2,090 -- -- Against 1,187,140 378 2,787,725 -- -- -- Abstain 379,854 35 794,659 -- -- -- Broker Non-Votes 2,686,946 72 4,820,879 -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total 13,150,278 3,694 27,460,714 2,090 -- -- ==================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY FOR THE FUND RELATING TO COMMODITIES. For 8,893,904 3,210 19,031,692 2,090 -- -- Against 1,177,200 378 2,796,236 -- -- -- Abstain 392,228 34 811,907 -- -- -- Broker Non-Votes 2,686,946 72 4,820,879 -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total 13,150,278 3,694 27,460,714 2,090 -- -- ==================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO TAX-EXEMPT SECURITIES. For -- -- -- -- 14,144,101 5,177 Against -- -- -- -- 1,387,428 292 Abstain -- -- -- -- 743,289 164 Broker Non-Votes -- -- -- -- 3,923,765 -- ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- -- -- 20,198,583 5,633 ==================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO TAX-EXEMPT SECURITIES. For -- -- -- -- 14,184,633 5,191 Against -- -- -- -- 1,360,591 282 Abstain -- -- -- -- 729,594 160 Broker Non-Votes -- -- -- -- 3,923,765 -- ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- -- -- 20,198,583 5,633 ====================================================================================================================================
Nuveen Investments 25 NIF | Shareholder Meeting Report (continued) NPX | NVG |
NIF NPX NVG ------------------------------------------------------------------------------------------------------------------------------------ Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: John P. Amboian For 12,591,988 -- -- -- -- -- Withhold 558,290 -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total 13,150,278 -- -- -- -- -- ==================================================================================================================================== Robert P. Bremner For 12,574,430 -- 24,777,356 -- 18,685,610 -- Withhold 575,848 -- 1,194,939 -- 1,365,899 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 13,150,278 -- 25,972,295 -- 20,051,509 -- ==================================================================================================================================== Jack B. Evans For 12,585,974 -- 24,773,070 -- 18,702,305 -- Withhold 564,304 -- 1,199,225 -- 1,349,204 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 13,150,278 -- 25,972,295 -- 20,051,509 -- ==================================================================================================================================== William C. Hunter For -- 3,378 -- 2,090 -- 5,373 Withhold -- 316 -- -- -- 260 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 3,694 -- 2,090 -- 5,633 ==================================================================================================================================== David J. Kundert For 12,572,423 -- -- -- -- -- Withhold 577,855 -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total 13,150,278 -- -- -- -- -- ==================================================================================================================================== William J. Schneider For -- 3,378 -- 2,090 -- 5,373 Withhold -- 316 -- -- -- 260 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 3,694 -- 2,090 -- 5,633 ==================================================================================================================================== Judith M. Stockdale For 12,581,120 -- -- -- -- -- Withhold 569,158 -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total 13,150,278 -- -- -- -- -- ==================================================================================================================================== Carole E. Stone For 12,572,682 -- -- -- -- -- Withhold 577,596 -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total 13,150,278 -- -- -- -- -- ==================================================================================================================================== Terence J. Toth For 12,584,582 -- -- -- -- -- Withhold 565,696 -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total 13,150,278 -- -- -- -- -- ====================================================================================================================================
26 Nuveen Investments NEA |
NEA --------------------------------------------------------------------------------------------------------------------------- Common and MuniPreferred MuniPreferred shares voting shares voting together together MuniPreferred - MuniPreferred - as a class Common shares as a class Series T Series W --------------------------------------------------------------------------------------------------------------------------- TO APPROVE AN AGREEMENT AND PLAN OF REORGANIZATION (THE "AGREEMENT"), PURSUANT TO WHICH NUVEEN INSURED FLORIDA TAX-FREE ADVANTAGE MUNICIPAL FUND (THE "ACQUIRED FUND") WOULD (I) TRANSFER ALL OF ITS ASSETS TO NUVEEN INSURED TAX-FREE ADVANTAGE MUNICIPAL FUND (THE "ACQUIRING FUND") IN EXCHANGE SOLELY FOR COMMON SHARES AND MUNICIPAL AUCTION RATE CUMULATIVE PREFERRED SHARES ("MUNIPREFERRED"), SERIES W2, OF THE ACQUIRING FUND AND THE ACQUIRING FUND'S ASSUMPTION OF ALL THE LIABILITIES OF THE ACQUIRED FUND, (II) DISTRIBUTE SUCH SHARES OF THE ACQUIRING FUND TO THE COMMON SHAREHOLDERS AND MUNIPREFERRED, SERIES W, SHAREHOLDERS OF THE ACQUIRED FUND AND (III) BE LIQUIDATED, DISSOLVED AND TERMINATED IN ACCORDANCE WITH THE ACQUIRED FUND'S DECLARATION OF TRUST (THE "REORGANIZATION"). For 9,569,489 9,564,604 4,885 2,493 2,392 Against 749,211 748,889 322 72 250 Abstain 429,651 429,546 105 91 14 --------------------------------------------------------------------------------------------------------------------------- Total 10,748,351 10,743,039 5,312 2,656 2,656 =========================================================================================================================== TO APPROVE THE ISSUANCE OF ADDITIONAL COMMON SHARES OF NUVEEN INSURED TAX-FREE ADVANTAGE MUNICIPAL FUND IN CONNECTION WITH THE REORGANIZATION. For 9,520,781 Against 849,093 Abstain 373,165 --------------------------------------------------------------------------------------------------------------------------- Total 10,743,039 ===========================================================================================================================
Nuveen Investments 27 NEA | Shareholder Meeting Report (continued) NEA -------------------------------------------------------------------------------- Common and MuniPreferred MuniPreferred shares voting shares voting together together as a class as a class -------------------------------------------------------------------------------- APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: John P. Amboian For -- -- Withhold -- -- -------------------------------------------------------------------------------- Total -- -- ================================================================================ Robert P. Bremner For 16,114,004 -- Withhold 697,141 -- -------------------------------------------------------------------------------- Total 16,811,145 -- ================================================================================ Jack B. Evans For 16,118,969 -- Withhold 692,176 -- -------------------------------------------------------------------------------- Total 16,811,145 -- ================================================================================ William C. Hunter For -- 2,849 Withhold -- 348 -------------------------------------------------------------------------------- Total -- 3,197 ================================================================================ David J. Kundert For -- -- Withhold -- -- -------------------------------------------------------------------------------- Total -- -- ================================================================================ William J. Schneider For -- 2,849 Withhold -- 348 -------------------------------------------------------------------------------- Total -- 3,197 ================================================================================ Judith M. Stockdale For -- -- Withhold -- -- -------------------------------------------------------------------------------- Total -- -- ================================================================================ Carole E. Stone For -- -- Withhold -- -- -------------------------------------------------------------------------------- Total -- -- ================================================================================ Terence J. Toth For -- -- Withhold -- -- -------------------------------------------------------------------------------- Total -- -- ================================================================================ 28 Nuveen Investments Report of Independent Registered Public Accounting Firm THE BOARD OF DIRECTORS/TRUSTEES AND SHAREHOLDERS NUVEEN INSURED QUALITY MUNICIPAL FUND, INC. NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC. NUVEEN PREMIER INSURED MUNICIPAL INCOME FUND, INC. NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND 2 NUVEEN INSURED DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN INSURED TAX-FREE ADVANTAGE MUNICIPAL FUND We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Insured Quality Municipal Fund, Inc., Nuveen Insured Municipal Opportunity Fund, Inc., Nuveen Premier Insured Municipal Income Fund, Inc., Nuveen Insured Premium Income Municipal Fund 2, Nuveen Insured Dividend Advantage Municipal Fund, and Nuveen Insured Tax-Free Advantage Municipal Fund (the "Funds") as of October 31, 2009, and the related statements of operations and cash flows (Nuveen Insured Quality Municipal Fund, Inc., Nuveen Insured Premium Income Municipal Fund 2 and Nuveen Insured Premium Income Municipal Fund 2 only) for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds' internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2009, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Insured Quality Municipal Fund, Inc., Nuveen Insured Municipal Opportunity Fund, Inc., Nuveen Premier Insured Municipal Income Fund, Inc., Nuveen Insured Premium Income Municipal Fund 2, Nuveen Insured Dividend Advantage Municipal Fund, and Nuveen Insured Tax-Free Advantage Municipal Fund at October 31, 2009, the results of their operations and cash flows (Nuveen Insured Quality Municipal Fund, Inc., Nuveen Insured Premium Income Municipal Fund 2 and Nuveen Insured Premium Income Municipal Fund 2 only) for the year then ended, changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with US generally accepted accounting principles. Ernst & young LLP Chicago, Illinois December 28, 2009 Nuveen Investments 29 NQI | Nuveen Insured Quality Municipal Fund, Inc. | Portfolio of Investments October 31, 2009
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 $ 1,270,542 Sewerage Revenue Bonds, Series 2002B, 5.250%, 1/01/20 (Pre-refunded 1/01/13) - NPFG Insured 7,000 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 6/15 at 100.00 A2 7,016,590 Series 2005A, 5.000%, 6/01/24 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,135 Total Alabama 8,287,132 ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 3.6% (2.3% OF TOTAL INVESTMENTS) 2,750 Mesa, Arizona, Utility System Revenue Bonds, Reset Option 7/17 at 100.00 AAA 2,095,445 Longs, Series 11033, 13.893%, 7/01/31 - FSA Insured (IF) 9,200 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/12 at 100.00 AA- 9,163,016 Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 - FGIC Insured (Alternative Minimum Tax) 8,755 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic No Opt. Call AA 7,283,547 Plaza, Series 2005B, 0.000%, 7/01/39 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 20,705 Total Arizona 18,542,008 ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.4% (0.3% OF TOTAL INVESTMENTS) 2,250 University of Arkansas, Fayetteville, Revenue Bonds, Medical 11/14 at 100.00 Aa3 2,350,373 Sciences Campus, Series 2004B, 5.000%, 11/01/24 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 29.9% (19.1% OF TOTAL INVESTMENTS) California Department of Water Resources, Water System Revenue Bonds, Central Valley Project, Series 2005AC: 4,010 5.000%, 12/01/24 - NPFG Insured (UB) 12/14 at 100.00 AAA 4,248,956 3,965 5.000%, 12/01/26 - MBIA Insured (UB) 12/14 at 100.00 AAA 4,182,123 12,925 California Pollution Control Financing Authority, Revenue 3/10 at 101.00 A1 12,937,408 Refunding Bonds, Southern California Edison Company, Series 1999A, 5.450%, 9/01/29 - NPFG Insured 13,445 California State, General Obligation Bonds, Series 2002, 4/12 at 100.00 A 13,305,710 5.000%, 4/01/27 - AMBAC Insured 7,055 California State, General Obligation Bonds, Series 2002, 4/12 at 100.00 AAA 7,730,516 5.000%, 4/01/27 (Pre-refunded 4/01/12) - AMBAC Insured 5 California State, General Obligation Bonds, Series 2004, 4/14 at 100.00 A 4,778 5.000%, 4/01/31 - AMBAC Insured 3,745 California State, General Obligation Bonds, Series 2004, 4/14 at 100.00 AAA 4,266,416 5.000%, 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 A 7,571,760 10/01/32 - NPFG Insured 2,340 Cerritos Public Financing Authority, California, Tax 11/17 at 102.00 A- 2,272,678 Allocation Revenue Bonds, Los Cerritos Redevelopment Projects, Series 2002A, 5.000%, 11/01/24 - AMBAC Insured 5,000 Clovis Unified School District, Fresno County, California, No Opt. Call AA (4) 2,518,900 General Obligation Bonds, Series 2001A, 0.000%, 8/01/25 - FGIC Insured (ETM) Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999: 22,985 0.000%, 1/15/24 - NPFG Insured 1/10 at 44.52 A 8,949,669 22,000 0.000%, 1/15/31 - NPFG Insured 1/10 at 29.12 A 5,327,300 50,000 0.000%, 1/15/37 - NPFG Insured 1/10 at 20.19 A 8,106,000 5,000 Garden Grove, California, Certificates of Participation, 3/12 at 101.00 A 4,970,050 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- 7,557,265 Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/35 - FGIC Insured 5,795 Kern Community College District, California, General No Opt. Call AAA 2,257,037 Obligation Bonds, Series 2006, 0.000%, 11/01/25 - FSA Insured 5,308 Moreno Valley Public Finance Authority, California, GNMA 1/12 at 105.00 Aaa 5,764,170 Collateralized Assisted Living Housing Revenue Bonds, CDC Assisted Living Project, Series 2000A, 7.500%, 1/20/42 4,940 Ontario Redevelopment Financing Authority, San Bernardino 1/10 at 100.00 A (4) 5,194,262 County, California, Revenue Bonds, Redevelopment Project 1, Series 1993, 5.850%, 8/01/22 - NPFG Insured (ETM)
30 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) $ 2,590 Riverside County Public Financing Authority, California, Tax 10/14 at 100.00 BBB $ 2,419,811 Allocation Bonds, Multiple Projects, Series 2004, 5.000%, 10/01/25 - SYNCORA GTY Insured 2,000 San Diego Redevelopment Agency, California, Subordinate Lien 9/14 at 100.00 A3 2,006,080 Tax Allocation Bonds, Centre City Project, Series 2004A, 5.000%, 9/01/21 - SYNCORA GTY 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 - NPFG Insured (Alternative Minimum Tax) 5/11 at 100.00 A1 7,188,840 12,690 5.250%, 5/01/31 - NPFG Insured (Alternative Minimum Tax) 5/11 at 100.00 A1 12,308,285 San Francisco Bay Area Rapid Transit District, California, Sales Tax Revenue Bonds, Series 2005A: 2,000 5.000%, 7/01/21 - NPFG Insured 7/15 at 100.00 AA+ 2,099,420 3,655 5.000%, 7/01/22 - NPFG Insured 7/15 at 100.00 AA+ 3,823,459 3,840 5.000%, 7/01/23 - NPFG Insured 7/15 at 100.00 AA+ 4,019,981 8,965 San Jose Redevelopment Agency, California, Tax Allocation 8/17 at 100.00 A 7,132,464 Bonds, Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30 - NPFG Insured 3,500 Saugus Union School District, Los Angeles County, California, No Opt. Call A+ 1,606,080 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+ 1,007,490 California, General Obligation Bonds, School Facilities Improvement District 1, Series 2005A, 5.000%, 8/01/27 - FGIC Insured 1,525 Sierra Joint Community College District, Western Nevada, 8/14 at 100.00 A+ 1,536,422 California, General Obligation Bonds, School Facilities Improvement District 2, Series 2005A, 5.000%, 8/01/27 - FGIC Insured 3,170 Ventura County Community College District, California, 8/15 at 100.00 AA 3,281,838 General Obligation Bonds, Series 2005B, 5.000%, 8/01/28 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 237,153 Total California 155,595,168 ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 3.2% (2.1% OF TOTAL INVESTMENTS) 2,015 Board of Trustees of the University of Northern Colorado, 6/15 at 100.00 AAA 2,110,088 Revenue Bonds, Series 2005, 5.000%, 6/01/22 - FSA Insured 1,000 Denver City and County, Colorado, Airport Revenue Bonds, 11/16 at 100.00 AA- 1,025,020 Series 2006, 5.000%, 11/15/24 - FGIC Insured 5,365 Denver, Colorado, Airport Revenue Refunding Bonds, Series 11/16 at 100.00 A+ 5,531,798 2006A, 5.000%, 11/15/23 - FGIC Insured (UB) 1,085 Denver, Colorado, Airport Revenue Bonds, Trust 2365, 13.595%, 11/16 at 100.00 A+ 1,172,646 11/15/25 - FGIC Insured (IF) 9,780 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call A 2,073,067 Bonds, Series 2000B, 0.000%, 9/01/32 - NPFG Insured 10,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call A 3,102,900 Series 2004A, 0.000%, 9/01/27 - NPFG Insured 1,250 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 1,304,400 Obligation Bonds, Series 2004, 5.000%, 12/15/24 - FSA Insured (UB) 500 University of Colorado, Enterprise System Revenue Bonds, 6/15 at 100.00 AA- 513,450 Series 2005, 5.000%, 6/01/30 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 30,995 Total Colorado 16,833,369 ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.9% (0.6% OF TOTAL INVESTMENTS) 1,335 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 1,239,401 Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals 1606, 11.582%, 10/01/30 - AMBAC Insured (IF) 3,920 Washington District of Columbia Convention Center Authority, 10/16 at 100.00 AAA 3,355,598 Dedicated Tax Revenue Bonds, Residual Series 1730,1731, 1736, 11.534%, 10/01/36 - AMBAC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ 5,255 Total District of Columbia 4,594,999 ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 8.6% (5.5% OF TOTAL INVESTMENTS) 3,450 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AA 3,569,853 Series 2005, 5.000%, 10/01/24 - NPFG Insured 2,750 Florida State Board of Education, Full Faith and Credit 6/13 at 101.00 AAA 2,916,403 Public Education Capital Outlay Bonds, Series 2003J, 5.000%, 6/01/22 - AMBAC Insured
Nuveen Investments 31 NQI | Nuveen Insured Quality Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA (continued) $ 2,550 Florida State Board of Education, Public Education Capital 6/18 at 101.00 AAA $ 2,935,152 Outlay Bonds, Series 2008, Trust 2929, 17.020%, 6/01/38 - AGC Insured (IF) 20,000 Lee County, Florida, Airport Revenue Bonds, Series 2000A, 10/10 at 101.00 AAA 20,208,400 5.750%, 10/01/25 - FSA Insured (Alternative Minimum Tax) 4,115 Miami-Dade County Housing Finance Authority, Florida, 7/11 at 100.00 AAA 4,149,689 Multifamily 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 A 6,940,430 International Airport, Series 2002, 5.375%, 10/01/32 - FGIC Insured (Alternative Minimum Tax) 3,730 Palm Beach County School Board, Florida, Certificates of 8/13 at 100.00 AA- 3,921,498 Participation, Series 2003A, 5.000%, 8/01/16 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 43,595 Total Florida 44,641,425 ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 1.6% (1.0% OF TOTAL INVESTMENTS) 1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/14 at 100.00 AAA 1,022,620 2004, 5.000%, 11/01/22 - FSA Insured 7,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/19 at 100.00 AAA 7,089,180 2009B, 5.375%, 11/01/39 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,000 Total Georgia 8,111,800 ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 3.4% (2.2% OF TOTAL INVESTMENTS) 1,620 Hawaii County, Hawaii, General Obligation Bonds, Series 7/13 at 100.00 AAA 1,742,099 2003A, 5.000%, 7/15/21 - FSA Insured Hawaii Department of Transportation, Airport System Revenue Refunding Bonds, Series 2000B: 8,785 6.625%, 7/01/18 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 A 8,973,263 7,000 6.000%, 7/01/19 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 A 7,114,730 ------------------------------------------------------------------------------------------------------------------------------------ 17,405 Total Hawaii 17,830,092 ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 16.5% (10.6% OF TOTAL INVESTMENTS) 9,500 Chicago, Illinois, Second Lien General Airport Revenue 1/10 at 101.00 AA- 9,627,775 Refunding Bonds, O'Hare International Airport, Series 1999, 5.500%, 1/01/15 - AMBAC Insured (Alternative Minimum Tax) 1,775 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 A1 1,855,638 O'Hare International Airport, Series 2005A, 5.250%, 1/01/24 - NPFG Insured 25,000 Illinois Health Facilities Authority, Revenue Bonds, Iowa 2/10 at 101.00 Aa3 (4) 25,621,000 Health 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 13,612,185 Series 2001, 5.250%, 5/01/26 - FSA Insured 15,785 Illinois, General Obligation Bonds, Illinois FIRST Program, 4/12 at 100.00 AAA 16,408,823 Series 2002, 5.250%, 4/01/27 - FSA Insured 18,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 8,195,580 Bonds, McCormick Place Expansion Project, Series 2002A, 0.000%, 12/15/24 - NPFG Insured 10,000 University of Illinois, Certificates of Participation, 8/11 at 100.00 AA- (4) 10,745,400 Utility Infrastructure Projects, Series 2001B, 5.250%, 8/15/21 (Pre-refunded 8/15/11) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 93,335 Total Illinois 86,066,401 ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 2.3% (1.5% OF TOTAL INVESTMENTS) 3,680 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 A+ 3,656,411 Series 2007A, 5.000%, 1/01/42 - NPFG Insured 7,380 Indiana Transportation Finance Authority, Highway Revenue No Opt. Call AA+ 8,510,690 Bonds, Series 1990A, 7.250%, 6/01/15 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 11,060 Total Indiana 12,167,101 ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.4% (0.3% OF TOTAL INVESTMENTS) 2,000 Wichita, Kansas, Water and Sewerage Utility Revenue Bonds, 10/13 at 100.00 A1 2,053,560 Series 2003, 5.000%, 10/01/21 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 6.2% (4.0% OF TOTAL INVESTMENTS) $ 3,015 Kentucky Asset/Liability Commission, General Fund Revenue 5/15 at 100.00 Aa3 $ 3,111,480 Project Notes, First Series 2005, 5.000%, 5/01/25 - NPFG Insured Kentucky Economic Development Finance Authority, Health System Revenue Bonds, Norton Healthcare Inc., Series 2000C: 2,530 6.150%, 10/01/27 - NPFG Insured 10/13 at 101.00 A 2,604,281 12,060 6.150%, 10/01/28 - NPFG Insured 10/13 at 101.00 A 12,403,710 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) - NPFG Insured 10/13 at 101.00 A (4) 4,446,573 6,125 6.150%, 10/01/28 (Pre-refunded 10/01/13) - NPFG Insured 10/13 at 101.00 A (4) 7,138,994 2,230 Kentucky State Property and Buildings Commission, Revenue 8/15 at 100.00 AAA 2,565,994 Bonds, Project 85, Series 2005, 5.000%, 8/01/23 (Pre-refunded 8/01/15) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 29,775 Total Kentucky 32,271,032 ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 3.7% (2.4% OF TOTAL INVESTMENTS) Louisiana State, Gasoline Tax Revenue Bonds, Series 2006A: 11,325 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 11,130,776 8,940 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA 8,382,591 10 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AA 7,507 Residuals 660-1, 15.601%, 5/01/41 - FGIC Insured (IF) 5 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AA 3,757 Residuals 660-3, 16.460%, 5/01/41 - FGIC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ 20,280 Total Louisiana 19,524,631 ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 0.1% (0.1% OF TOTAL INVESTMENTS) 555 Maine Health and Higher Educational Facilities Authority, 7/11 at 100.00 Aaa 561,810 Revenue Bonds, Series 1999B, 6.000%, 7/01/29 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 1.8% (1.2% OF TOTAL INVESTMENTS) 2,100 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 1,984,583 Revenue Bonds, Western Maryland Health, Series 2006A, 4.750%, 7/01/36 - NPFG Insured 7,335 Maryland Transportation Authority, Airport Parking Revenue 3/12 at 101.00 A2 7,557,763 Bonds, Baltimore-Washington International Airport Passenger Facility, Series 2002B, 5.500%, 3/01/18 - AMBAC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 9,435 Total Maryland 9,542,346 ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 2.9% (1.8% OF TOTAL INVESTMENTS) 5,000 Massachusetts Bay Transportation Authority, Senior Sales Tax 7/12 at 100.00 AAA 5,528,950 Revenue Refunding Bonds, Series 2002A, 5.000%, 7/01/27 (Pre-refunded 7/01/12) - FGIC Insured 3,465 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 AAA 3,202,526 Bonds, Series 2007A, 4.500%, 8/01/46 - FSA Insured (UB) 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) 1,409,837 1,000 5.250%, 1/01/22 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 1,127,870 1,195 5.250%, 1/01/23 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 1,347,804 2,000 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 2,255,740 ------------------------------------------------------------------------------------------------------------------------------------ 13,910 Total Massachusetts 14,872,727 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 0.9% (0.6% OF TOTAL INVESTMENTS) 4,750 Michigan Strategic Fund, Collateralized Limited Obligation 3/10 at 102.00 A 4,660,083 Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 1999A, 5.550%, 9/01/29 - NPFG Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 33 NQI | Nuveen Insured Quality Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 1.2% (0.8% OF TOTAL INVESTMENTS) $ 2,715 Harrison County Wastewater Management District, Mississippi, No Opt. Call A (4) $ 3,368,120 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 N/R (4) 3,113,501 Wastewater Treatment Facilities Revenue Refunding Bonds, Series 1991A, 8.500%, 2/01/13 - FGIC Insured (ETM) ------------------------------------------------------------------------------------------------------------------------------------ 5,260 Total Mississippi 6,481,621 ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 2.2% (1.4% OF TOTAL INVESTMENTS) 12,155 Lincoln, Nebraska, Electric System Revenue Bonds, Series 9/17 at 100.00 AA 11,508,232 2007A, 4.500%, 9/01/37 - FGIC Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 2.5% (1.6% OF TOTAL INVESTMENTS) 33,700 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 Caa2 6,908,837 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, 6/12 at 100.00 Baa3 (4) 6,300,407 Reno Transportation Rail Access Corridor Project, Series 2002, 5.125%, 6/01/32 (Pre-refunded 6/01/12) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 39,420 Total Nevada 13,209,244 ------------------------------------------------------------------------------------------------------------------------------------ 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 - NPFG Insured 7/14 at 100.00 A 1,740,375 1,700 5.000%, 7/01/23 - NPFG Insured 7/14 at 100.00 A 1,738,930 2,100 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 A+ 2,231,291 5.000%, 1/01/19 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,500 Total New Jersey 5,710,596 ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 1.2% (0.8% OF TOTAL INVESTMENTS) New Mexico Finance Authority, Public Project Revolving Fund Revenue Bonds, Series 2004C: 1,345 5.000%, 6/01/22 - AMBAC Insured 6/14 at 100.00 AA+ 1,405,095 3,290 5.000%, 6/01/23 - AMBAC Insured 6/14 at 100.00 AA+ 3,423,410 1,330 New Mexico State University, Revenue Bonds, Series 2004, 4/14 at 100.00 AA 1,387,894 5.000%, 4/01/23 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,965 Total New Mexico 6,216,399 ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 13.8% (8.8% OF TOTAL INVESTMENTS) 11,760 Dormitory Authority of the State of New York, New York City, 5/10 at 101.00 AA- (4) 12,222,991 Lease 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, 10/12 at 100.00 A+ 15,878,700 School Districts Financing Program, Series 2002D, 5.500%, 10/01/17 - NPFG Insured 4,080 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 3,440,460 Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured 2,890 Long Island Power Authority, New York, Electric System 6/16 at 100.00 A 2,969,793 General Revenue Bonds, Series 2006A, 5.000%, 12/01/25 - FGIC Insured 3,300 Long Island Power Authority, New York, Electric System 11/16 at 100.00 A 2,982,903 Revenue Bonds, Series 2006F, 4.250%, 5/01/33 - NPFG Insured 7,800 Metropolitan Transportation Authority, New York, State 7/12 at 100.00 AA- 7,949,682 Service Contract Refunding Bonds, Series 2002A, 5.000%, 7/01/25 - FGIC Insured 1,740 New York Convention Center Development Corporation, Hotel 11/15 at 100.00 AAA 1,903,699 Unit Fee Revenue Bonds, Series 2005, Trust 2364, 16.993%, 11/15/44 - AMBAC Insured (IF) 10,150 New York State Housing Finance Agency, Mortgage Revenue 11/09 at 100.00 AAA 10,161,673 Refunding Bonds, Housing Project, Series 1996A, 6.125%, 11/01/20 - FSA Insured 4,200 New York State Mortgage Agency, Homeowner Mortgage Revenue 4/10 at 100.00 Aa1 4,202,688 Bonds, Series 82, 5.550%, 10/01/19 - NPFG Insured (Alternative Minimum Tax) New York State Urban Development Corporation, Service Contract Revenue Bonds, Series 2005B: 2,460 5.000%, 3/15/24 - FSA Insured (UB) 3/15 at 100.00 AAA 2,583,394 2,465 5.000%, 3/15/25 - FSA Insured (UB) 3/15 at 100.00 AAA 2,584,010 5,000 Triborough Bridge and Tunnel Authority, New York, Subordinate 11/13 at 100.00 Aa3 5,087,650 Lien General Purpose Revenue Bonds, Series 2003A, 5.000%, 11/15/32 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 70,845 Total New York 71,967,643 ------------------------------------------------------------------------------------------------------------------------------------
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 4.6% (3.0% OF TOTAL INVESTMENTS) $ 7,000 Cleveland State University, Ohio, General Receipts Bonds, 6/14 at 100.00 A+ $ 7,498,400 Series 2004, 5.250%, 6/01/19 - FGIC Insured 9,195 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 A2 8,319,543 Series 2006, 4.250%, 12/01/32 - AMBAC Insured 5,000 Lorain County, Ohio, Health Facilities Revenue Bonds, 3/10 at 102.00 AA- 5,063,950 Catholic Healthcare Partners, Series 1999A, 5.500%, 9/01/29 - AMBAC Insured 3,065 Oak Hills Local School District, Hamilton County, Ohio, 12/15 at 100.00 AAA 3,266,003 General Obligation Bonds, Series 2005, 5.000%, 12/01/24 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 24,260 Total Ohio 24,147,896 ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.3% (1.4% OF TOTAL INVESTMENTS) 3,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 A 3,087,000 Revenue Bonds, Series 2005A, 5.000%, 12/01/23 - NPFG Insured 1,600 Delaware County Authority, Pennsylvania, Revenue Bonds, 8/16 at 100.00 A1 1,646,976 Villanova University, Series 2006, 5.000%, 8/01/24 - AMBAC Insured 5,400 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 4,995,486 Bonds, School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 - FSA Insured (UB) 2,000 Pittsburgh Public Parking Authority, Pennsylvania, Parking 12/15 at 100.00 A 2,040,900 Revenue Bonds, Series 2005B, 5.000%, 12/01/23 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 12,000 Total Pennsylvania 11,770,362 ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 2.2% (1.4% OF TOTAL INVESTMENTS) 2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 A 2,521,300 Series 2005RR, 5.000%, 7/01/22 - FGIC Insured 25,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call AA- 3,625,500 Revenue Bonds, Series 2007A, 0.000%, 8/01/42 - FGIC Insured 5,000 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call BBB+ 5,322,000 Transportation Authority, Series 2003AA, 5.500%, 7/01/16 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 32,500 Total Puerto Rico 11,468,800 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 2.3% (1.5% OF TOTAL INVESTMENTS) 2,425 Charleston County School District, South Carolina, General 2/14 at 100.00 Aa1 2,557,332 Obligation Bonds, Series 2004A, 5.000%, 2/01/22 - AMBAC Insured 9,950 South Carolina Transportation Infrastructure Bank, Revenue 10/16 at 100.00 A1 9,449,116 Bonds, Series 2007A, 4.500%, 10/01/34 - SYNCORA GTY Insured ------------------------------------------------------------------------------------------------------------------------------------ 12,375 Total South Carolina 12,006,448 ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 1.3% (0.8% 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 3,350,700 5,000 0.000%, 1/01/25 - FSA Insured 1/13 at 49.71 AAA 2,101,300 2,750 0.000%, 1/01/26 - FSA Insured 1/13 at 46.78 AAA 1,085,562 ------------------------------------------------------------------------------------------------------------------------------------ 15,250 Total Tennessee 6,537,562 ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 17.3% (11.1% OF TOTAL INVESTMENTS) 3,135 Corpus Christi, Texas, Utility System Revenue Bonds, Series 7/14 at 100.00 AAA 3,420,693 2004, 5.250%, 7/15/20 - FSA Insured (UB) 3,000 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 A+ 3,181,320 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, 2/13 at 100.00 AAA 4,181,594 Texas, General Obligation Bonds, Series 2003, 5.125%, 2/15/31 (Pre-refunded 2/15/13) - FSA Insured 575 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call A1 584,028 Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured 70 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call A1 (4) 71,288 Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured (ETM) 4,700 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AA 4,942,285 Bonds, Series 2004A, 5.250%, 5/15/24 - FGIC Insured
Nuveen Investments 35 NQI | Nuveen Insured Quality Municipal Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 4,500 Houston, Texas, General Obligation Public Improvement Bonds, 3/11 at 100.00 AAA $ 4,681,260 Series 2001A, 5.000%, 3/01/22 - FSA Insured 17,000 Houston, Texas, Junior Lien Water and Sewerage System Revenue No Opt. Call AAA 20,884,330 Refunding Bonds, Series 2002A, 5.750%, 12/01/32 - FSA Insured (ETM) 4,685 Houston, Texas, Subordinate Lien Airport System Revenue 7/10 at 100.00 AAA 4,717,092 Bonds, Series 2000A, 5.500%, 7/01/19 - FSA Insured (Alternative Minimum Tax) 19,200 Jefferson County Health Facilities Development Corporation, 8/11 at 100.00 N/R 19,459,775 Texas, 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 8/11 at 100.00 A- 2,015,860 Corporation, Texas, Lease Revenue Bonds, Series 2004A, 5.000%, 8/01/24 - AMBAC Insured 22,045 North Central Texas Health Facilities Development 8/12 at 101.00 Aa3 22,148,390 Corporation, Revenue Bonds, Children's Medical Center of Dallas, Series 2002, 5.250%, 8/15/32 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 84,645 Total Texas 90,287,915 ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.7% (0.5% OF TOTAL INVESTMENTS) 3,615 Utah Transit Authority, Sales Tax Revenue Bonds, Tender 6/18 at 100.00 AAA 3,771,674 Option Bond Trust R-11752-1, 12.604%, 6/15/32 - FSA Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 12.0% (7.7% OF TOTAL INVESTMENTS) 10,730 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AA 10,771,203 Consolidated System Revenue Refunding Bonds, Series 2001C, 5.650%, 7/01/32 - NPFG Insured (Alternative Minimum Tax) (UB) 1,665 King County, Washington, Sewer Revenue Bonds, Tender Option 7/17 at 100.00 AAA 1,776,389 Bond Trust 3090, 13.238%, 1/01/39 - FSA Insured (IF) 15,025 Seattle Housing Authority, Washington, GNMA Collateralized 11/11 at 105.00 AA+ 15,904,863 Mortgage Loan Low Income Housing Assistance Revenue Bonds, Park Place Project, Series 2000A, 7.000%, 5/20/42 4,495 Seattle Housing Authority, Washington, GNMA Collateralized 9/11 at 102.00 AA+ 4,628,232 Mortgage Loan Low Income Housing Assistance Revenue Bonds, RHF/Esperanza Apartments Project, Series 2000A, 6.125%, 3/20/42 (Alternative Minimum Tax) 5,000 Seattle, Washington, Municipal Light and Power Revenue Bonds, 12/10 at 100.00 AAA 5,185,650 Series 2000, 5.250%, 12/01/21 - FSA Insured 2,500 Washington State Healthcare Facilities Authority, Revenue 12/09 at 101.00 A (4) 2,535,950 Bonds, Providence Services, Series 1999, 5.375%, 12/01/19 (Pre-refunded 12/01/09) - NPFG Insured 10,000 Washington State, General Obligation Bonds, Series R-2003A, 1/12 at 100.00 AA+ 10,648,900 5.000%, 1/01/19 - NPFG Insured 21,510 Washington State, Motor Vehicle Fuel Tax General Obligation No Opt. Call AA+ 8,958,055 Bonds, Series 2002-03C, 0.000%, 6/01/28 - NPFG Insured (UB) 2,000 Washington, Certificates of Participation, Washington 1/10 at 100.00 AA 2,006,360 Convention and Trade Center, Series 1999, 5.250%, 7/01/14 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 72,925 Total Washington 62,415,602 ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 2.6% (1.6% OF TOTAL INVESTMENTS) 12,845 West Virginia Water Development Authority, Infrastructure 10/10 at 100.00 AAA 13,454,751 Revenue Bonds, Infrastructure and Jobs Development Council Program, Series 2000A, 5.500%, 10/01/39 (Pre-refunded 10/01/10) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------
36 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 0.6% (0.3% OF TOTAL INVESTMENTS) $ 1,635 Green Bay, Wisconsin, Water System Revenue Bonds, Series 11/14 at 100.00 Aa3 (4) $ 1,880,102 2004, 5.000%, 11/01/26 (Pre-refunded 11/01/14) - FSA Insured 1,000 Wisconsin Public Power Incorporated System, Power Supply 7/15 at 100.00 A+ 1,005,320 System Revenue Bonds, Series 2005A, 5.000%, 7/01/30 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 2,635 Total Wisconsin 2,885,422 ------------------------------------------------------------------------------------------------------------------------------------ $ 970,788 Total Investments (cost $822,132,451) - 155.9% 812,346,224 ===============--------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (11.3)% (59,145,000) ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 2.6% 13,865,236 ------------------------------------------------------------------------------------------------------------------ Auction Rate Preferred Shares, at Liquidation Value - (47.2)% (5) (245,850,000) ------------------------------------------------------------------------------------------------------------------ Net Assets Applicable to Common Shares - 100% $ 521,216,460 ==================================================================================================================
Primarily all of the Fund's net assets are invested in municipal securities that guarantee the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 - Insurance, from more information. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Comments for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the port- folio 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) Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments is 30.3%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. Nuveen Investments 37 NIO | Nuveen Insured Municipal Opportunity Fund, Inc. | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 5.1% (3.3% OF TOTAL INVESTMENTS) $ 10,500 Birmingham Waterworks and Sewerage Board, Alabama, Water and 1/17 at 100.00 AAA $ 9,749,460 Sewerage Revenue Bonds, Series 2007A, 4.500%, 1/01/43 - AMBAC Insured (UB) 11,175 Hoover Board of Education, Alabama, Capital Outlay Tax 2/11 at 100.00 AA- 11,626,694 Anticipation Warrants, Series 2001, 5.250%, 2/15/22 - NPFG Insured 2,500 Jefferson County, Alabama, Sewer Revenue Capital Improvement 8/12 at 100.00 AAA 2,752,850 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 456,981 14,800 5.000%, 2/01/42 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 16,246,996 18,760 Jefferson County, Alabama, Sewer Revenue Capitol Improvement 2/11 at 101.00 AAA 19,690,684 Warrants, Series 2001A, 5.000%, 2/01/41 (Pre-refunded 2/01/11) - FGIC Insured 10,195 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, 1/10 at 100.00 Caa3 3,533,179 Series 1997A, 5.375%, 2/01/27 - FGIC Insured 5,240 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, 2/11 at 101.00 AAA 5,556,810 Series 2003B, 5.000%, 2/01/41 (Pre-refunded 2/01/11) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 73,595 Total Alabama 69,613,654 ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.2% (0.1% OF TOTAL INVESTMENTS) 2,425 Alaska Housing Finance Corporation, Collateralized Veterans 12/09 at 100.00 AAA 2,426,940 Mortgage Program Bonds, First Series 1999A-1, 6.150%, 6/01/39 ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 2.0% (1.3% 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 AA- 2,048,760 2,000 5.000%, 9/01/27 - AMBAC Insured 3/15 at 100.00 AA- 2,035,460 1,000 Arizona State University, System Revenue Bonds, Series 2005, 7/15 at 100.00 N/R 1,039,420 5.000%, 7/01/27 - AMBAC Insured 1,000 Maricopa County Union High School District 210, Phoenix, 7/14 at 100.00 AAA 1,142,430 Arizona, General Obligation Bonds, Series 2004A, 5.000%, 7/01/22 (Pre-refunded 7/01/14) - FSA Insured 5,200 Mesa, Arizona, Utility System Revenue Bonds, Reset Option 7/17 at 100.00 AAA 3,962,296 Longs, Series 11032- 11034, 13.893%, 7/01/31 - FSA Insured (IF) 1,150 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/14 at 100.00 AA+ 1,181,211 Wastewater System Revenue Bonds, Series 2004, 5.000%, 7/01/27 - NPFG Insured 13,490 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/15 at 100.00 AAA 13,949,604 Water System Revenue Bonds, Series 2005, 4.750%, 7/01/25 - NPFG Insured 1,350 Pima County Industrial Development Authority, Arizona, Lease 1/10 at 100.00 Aa3 1,357,520 Obligation Revenue Refunding Bonds, Tucson Electric Power Company, Series 1988A, 7.250%, 7/15/10 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 27,190 Total Arizona 26,716,701 ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.2% (0.1% OF TOTAL INVESTMENTS) 2,660 Arkansas State University, Student Fee Revenue Bonds, Beebe 9/15 at 100.00 A2 2,686,627 Campus, Series 2006, 5.000%, 9/01/35 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 26.1% (16.6% OF TOTAL INVESTMENTS) 5,600 Alameda Corridor Transportation Authority, California, No Opt. Call A- 2,862,832 Subordinate Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/20 - AMBAC Insured 10,000 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 Aa2 10,189,500 Revenue 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) - SYNCORA GTY 5/12 at 101.00 Aaa 33,538,200 Insured 20,000 5.375%, 5/01/18 (Pre-refunded 5/01/12) - AMBAC Insured 5/12 at 101.00 Aaa 22,358,800 California Department of Water Resources, Water System Revenue Bonds, Central Valley Project, Series 2005AC: 30 5.000%, 12/01/24 (Pre-refunded 12/01/14) - NPFG Insured 12/14 at 100.00 AAA 34,642 25 5.000%, 12/01/27 (Pre-refunded 12/01/14) - NPFG Insured 12/14 at 100.00 AAA 28,869
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) California Department of Water Resources, Water System Revenue Bonds, Central Valley Project, Series 2005AC: $ 3,670 5.000%, 12/01/24 - NPFG Insured (UB) 12/14 at 100.00 AAA $ 3,888,695 2,795 5.000%, 12/01/27 - MBIA Insured (UB) 12/14 at 100.00 AAA 2,938,803 10,150 California, General Obligation Bonds, Series 2004, 5.000%, 12/14 at 100.00 A 9,697,919 6/01/31 - AMBAC Insured 3,500 Coachella Valley Unified School District, Riverside County, 8/15 at 100.00 A 3,529,330 California, General Obligation Bonds, Series 2005A, 5.000%, 8/01/26 - FGIC Insured 20,000 Cucamonga County Water District, San Bernardino County, 9/11 at 101.00 AA- 19,619,400 California, Certificates of Participation, Water Shares Purchase, Series 2000, 5.125%, 9/01/35 - FGIC Insured 5,750 East Bay Municipal Utility District, Alameda and Contra Costa 6/15 at 100.00 AAA 6,071,943 Counties, California, Water System Subordinated Revenue Bonds, Series 2005A, 5.000%, 6/01/27 - NPFG Insured 10,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- 8,838,600 Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/38 - FGIC Insured 1,520 Hayward Redevelopment Agency, California, Downtown 3/16 at 100.00 A- 1,338,147 Redevelopment Project Tax Allocation Bonds, Series 2006, 5.000%, 3/01/36 - SYNCORA GTY Insured 5,600 Kern Community College District, California, General No Opt. Call AAA 2,354,968 Obligation Bonds, Series 2006, 0.000%, 11/01/24 - FSA Insured 5,000 Long Beach Bond Financing Authority, California, Lease 11/11 at 101.00 BBB 4,577,850 Revenue Refunding Bonds, Long Beach Aquarium of the South Pacific, Series 2001, 5.250%, 11/01/30 - AMBAC Insured 2,740 Los Angeles Harbors Department, California, Revenue Bonds, 8/16 at 102.00 AA 2,705,229 Series 2006A, 5.000%, 8/01/22 - FGIC Insured (Alternative Minimum Tax) 20,000 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 20,626,200 Obligation Bonds, Series 2003A, 5.000%, 7/01/21 - FSA Insured 3,000 Los Angeles Unified School District, California, General 7/16 at 100.00 AA- 3,132,840 Obligation Bonds, Series 2006F, 5.000%, 7/01/24 - FGIC Insured 5,200 Palomar Pomerado Health, California, General Obligation 8/29 at 100.00 AAA 3,267,160 Bonds, Series 2009A, 0.000%, 8/01/38 - AGC Insured 6,205 Port of Oakland, California, Revenue Bonds, Series 2002L, 11/12 at 100.00 A1 5,992,106 5.000%, 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 N/R 13,655,850 5,000 5.125%, 6/15/33 - AMBAC Insured 12/11 at 101.00 N/R 4,376,750 2,035 Redding, California, Electric System Revenue Certificates of 6/15 at 100.00 A 1,879,791 Participation, Series 2005, 5.000%, 6/01/30 - FGIC Insured 6,000 Redlands Unified School District, San Bernardino County, 7/13 at 100.00 AAA 6,077,760 California, 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 3,135,162 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 2,599,500 California, Revenue Bonds, Series 2005B, 4.750%, 12/01/21 - FGIC Insured 13,710 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 A1 13,384,936 Refunding Bonds, San Francisco International Airport, Second Series 2001, Issue 27A, 5.250%, 5/01/26 - NPFG Insured (Alternative Minimum Tax) 3,030 San Francisco Bay Area Rapid Transit District, California, 7/11 at 100.00 AA+ 3,057,664 Sales Tax Revenue Bonds, Series 2001, 5.125%, 7/01/36 - AMBAC Insured 8,470 San Francisco Bay Area Rapid Transit District, California, 7/11 at 100.00 AA+ (4) 9,101,947 Sales Tax Revenue Bonds, Series 2001, 5.125%, 7/01/36 (Pre-refunded 7/01/11) - AMBAC Insured 1,220 San Francisco Bay Area Rapid Transit District, California, 7/15 at 100.00 AA+ 1,276,230 Sales Tax Revenue Bonds, Series 2005A, 5.000%, 7/01/22 - NPFG Insured 2,105 San Francisco Unified School District, California, General 6/17 at 100.00 AAA 1,707,892 Obligation Bonds, Series 2007A, 3.000%, 6/15/27 - FSA Insured 66,685 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 42,987,152 County, California, Senior Lien Toll Road Revenue Bonds, Series 1993, 0.000%, 1/01/21 (ETM)
Nuveen Investments 39 NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue Refunding Bonds, Series 1997A: $ 31,615 5.250%, 1/15/30 - NPFG Insured 1/10 at 100.00 A $ 27,201,230 21,500 0.000%, 1/15/32 - NPFG Insured No Opt. Call A 4,217,870 12,525 San Jose Redevelopment Agency, California, Tax Allocation 8/10 at 101.00 A (4) 13,086,872 Bonds, Merged Area Redevelopment Project, Series 2002, 5.000%, 8/01/20 (Pre-refunded 8/01/10) - NPFG Insured 19,595 San Jose Redevelopment Agency, California, Tax Allocation 8/17 at 100.00 A 15,589,586 Bonds, Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30 - NPFG Insured 11,250 Santa Ana Financing Authority, California, Lease Revenue No Opt. Call A 11,927,588 Bonds, Police Administration and Housing Facility, Series 1994A, 6.250%, 7/01/24 - NPFG Insured 6,785 Santa Clara Valley Water District, California, Water Revenue 6/16 at 100.00 AAA 6,490,667 Bonds, Series 2006A, 3.750%, 6/01/25 - FSA Insured 5,000 Walnut Energy Center Authority, California, Electric Revenue 1/14 at 100.00 A+ 4,856,250 Bonds, Turlock Irrigation District, Series 2004A, 5.000%, 1/01/34 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 407,780 Total California 354,202,730 ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 5.8% (3.7% OF TOTAL INVESTMENTS) 1,080 Arkansas River Power Authority, Colorado, Power Revenue Bonds, 10/16 at 100.00 BBB 967,475 Series 2006, 5.250%, 10/01/40 - SYNCORA GTY Insured 1,900 Aspen, Colorado, Sales Tax Revenue Bonds, Parks and Open 11/15 at 100.00 AAA 2,025,951 Space, Series 2005B, 5.250%, 11/01/24 - FSA Insured 1,000 Colorado Department of Transportation, Certificates of 6/14 at 100.00 AA- 1,039,440 Participation, Series 2004, 5.000%, 6/15/25 - NPFG Insured 4,950 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 N/R (4) 5,552,762 Revenue Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/33 (Pre-refunded 12/01/13) - SYNCORA GTY Insured 1,740 Douglas County School District RE1, Douglas and Elbert 12/14 at 100.00 Aa2 1,810,835 Counties, Colorado, General Obligation Bonds, Series 2005B, 5.000%, 12/15/28 - FSA Insured 35,995 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call A 14,855,137 Bonds, Series 1997B, 0.000%, 9/01/23 - NPFG Insured 30,800 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 102.00 AAA 32,789,988 Bonds, Series 2000A, 5.750%, 9/01/35 (Pre-refunded 9/01/10) - NPFG Insured 11,800 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 74.80 Aaa 8,771,884 Bonds, Series 2000B, 0.000%, 9/01/15 (Pre-refunded 9/01/10) - NPFG Insured 10,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call A 3,102,900 Series 2004A, 0.000%, 9/01/27 - NPFG Insured 4,520 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 4,716,710 Obligation Bonds, Series 2004, 5.000%, 12/15/24 - FSA Insured (UB) 2,500 Summit County School District RE-1, Summit, Colorado, General 12/14 at 100.00 Aa3 2,627,675 Obligation Bonds, Series 2004B, 5.000%, 12/01/24 - FGIC Insured 1,000 University of Colorado, Enterprise System Revenue Bonds, 6/15 at 100.00 AA- 1,026,900 Series 2005, 5.000%, 6/01/30 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 107,285 Total Colorado 79,287,657 ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.9% (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- 5,152,600 5,000 5.125%, 10/01/25 - FGIC Insured 10/13 at 100.00 AA- 5,138,100 2,670 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 2,478,801 Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals 1606, 11.582%, 10/01/30 - AMBAC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ 12,670 Total District of Columbia 12,769,501 ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 27.0% (17.2% OF TOTAL INVESTMENTS) 1,250 Bay County, Florida, Water System Revenue Bonds, Series 2005, 9/15 at 100.00 A3 1,282,338 5.000%, 9/01/24 - AMBAC Insured 2,000 Brevard County Health Facilities Authority, Florida, Hospital 4/10 at 100.00 A 2,003,180 Revenue Bonds, Holmes Regional Medical Center Project, Series 1996, 5.625%, 10/01/14 - NPFG Insured
40 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA (continued) $ 975 Broward County Housing Finance Authority, Florida, GNMA 12/09 at 100.00 Aaa $ 975,907 Collateralized Multifamily Housing Revenue Refunding Bonds, Pompano Oaks Apartments, Series 1997, 6.000%, 12/01/27 (Alternative Minimum Tax) 3,820 Broward County School Board, Florida, Certificates of 7/13 at 100.00 A+ 3,987,201 Participation, Series 2003, 5.250%, 7/01/19 - NPFG Insured 2,150 Broward County, Florida, Airport System Revenue Bonds, Series 10/14 at 100.00 A+ 2,218,908 2004L, 5.000%, 10/01/23 - AMBAC Insured 4,500 Broward County, Florida, Water and Sewer Utility Revenue 10/13 at 100.00 AA 4,617,270 Bonds, Series 2003, 5.000%, 10/01/24 - NPFG Insured Clay County, Florida, Utility System Revenue Bonds, Series 2007: 5,110 5.000%, 11/01/27 - SYNCORA GTY Insured (UB) 11/17 at 100.00 AAA 5,336,015 12,585 5.000%, 11/01/32 - SYNCORA GTY Insured (UB) 11/17 at 100.00 AAA 12,853,816 Collier County Housing Finance Authority, Florida, Multifamily Housing Revenue Bonds, Saxon Manor Isles Project, Series 1998B: 1,260 5.350%, 9/01/18 - FSA Insured (Alternative Minimum Tax) 3/10 at 100.00 AAA 1,260,605 1,000 5.400%, 9/01/23 - FSA Insured (Alternative Minimum Tax) 3/10 at 100.00 AAA 1,000,400 Collier County Housing Finance Authority, Florida, Multifamily Housing Revenue Refunding Bonds, Saxon Manor Isles Project, Series 1998A, Subseries 1: 1,040 5.350%, 9/01/18 - FSA Insured (Alternative Minimum Tax) 3/10 at 100.00 AAA 1,040,499 1,400 5.400%, 9/01/23 - FSA Insured (Alternative Minimum Tax) 3/10 at 100.00 AAA 1,400,560 1,500 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AA 1,557,510 Series 2005, 5.000%, 10/01/23 - NPFG Insured 3,000 Collier County, Florida, Gas Tax Revenue Bonds, Series 2005, 6/15 at 100.00 A 3,059,130 5.000%, 6/01/22 - AMBAC Insured Dade County Housing Finance Authority, Florida, Multifamily Mortgage Revenue Bonds, Siesta Pointe Apartments Project, Series 1997A: 1,230 5.650%, 9/01/17 - FSA Insured (Alternative Minimum Tax) 3/10 at 100.00 AAA 1,231,119 1,890 5.750%, 9/01/29 - FSA Insured (Alternative Minimum Tax) 3/10 at 100.00 AAA 1,890,794 1,100 Dade County, Florida, Seaport Revenue Refunding Bonds, Series 4/10 at 100.00 A 1,104,378 1995, 5.750%, 10/01/15 - NPFG Insured Davie, Florida, Water and Sewerage Revenue Refunding and Improvement Bonds, Series 2003: 910 5.250%, 10/01/17 - AMBAC Insured 10/13 at 100.00 N/R 989,479 475 5.250%, 10/01/18 - AMBAC Insured 10/13 at 100.00 N/R 488,514 Deltona, Florida, Utility Systems Water and Sewer Revenue Bonds, Series 2003: 1,250 5.250%, 10/01/22 - NPFG Insured 10/13 at 100.00 A 1,282,613 1,095 5.000%, 10/01/23 - NPFG Insured 10/13 at 100.00 A 1,123,930 1,225 5.000%, 10/01/24 - NPFG Insured 10/13 at 100.00 A 1,255,588 1,555 DeSoto County, Florida, Capital Improvement Revenue Bonds, 4/12 at 101.00 A 1,609,363 Series 2002, 5.250%, 10/01/20 - NPFG Insured 2,500 Escambia County School Board, Florida, Certificates of 2/15 at 100.00 A 2,514,150 Participation, Series 2004, 5.000%, 2/01/22 - NPFG Insured 2,500 Flagler County School Board, Florida, Certificates of 8/15 at 100.00 AAA 2,527,200 Participation, Master Lease Revenue Program, Series 2005A, 5.000%, 8/01/30 - FSA Insured 1,200 Flagler County, Florida, Capital Improvement Revenue Bonds, 10/15 at 100.00 A 1,204,824 Series 2005, 5.000%, 10/01/30 - NPFG Insured 3,945 Florida Governmental Utility Authority, Utility System Revenue 10/13 at 100.00 N/R (4) 4,472,644 Bonds, Citrus Project, Series 2003, 5.000%, 10/01/23 (Pre-refunded 10/01/13) - AMBAC Insured 1,000 Florida Governmental Utility Authority, Utility System Revenue 1/10 at 101.00 N/R 906,790 Bonds, Golden Gate Project, Series 1999, 5.000%, 7/01/29 - AMBAC Insured 2,030 Florida Housing Finance Corporation, GNMA Collateralized 12/10 at 102.00 Aaa 2,064,084 Housing Revenue Bonds, Cobblestone Apartments, Series 2000K-1, 6.000%, 12/01/33 (Alternative Minimum Tax) 2,475 Florida Housing Finance Corporation, GNMA Collateralized 9/10 at 102.00 A- 2,516,630 Housing Revenue Bonds, Raintree Apartments, Series 2000J-1, 5.950%, 3/01/35 (Alternative Minimum Tax) 3,005 Florida Housing Finance Corporation, Homeowner Mortgage 1/10 at 24.68 Aa1 749,627 Revenue Bonds, Series 2000-4, 0.000%, 7/01/30 - FSA Insured (Alternative Minimum Tax) 4,750 Florida Housing Finance Corporation, Housing Revenue Bonds, 10/10 at 102.00 Aaa 5,081,075 Augustine Club Apartments, Series 2000D-1, 5.750%, 10/01/30 (Pre-refunded 10/01/10) - NPFG Insured
Nuveen Investments 41 NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA (continued) Florida Municipal Loan Council, Revenue Bonds, Series 2000B: $ 3,365 5.375%, 11/01/25 - NPFG Insured 11/10 at 101.00 A $ 3,393,872 3,345 5.375%, 11/01/30 - NPFG Insured 11/10 at 101.00 A 3,362,929 1,000 Florida Municipal Loan Council, Revenue Bonds, Series 2001A, 11/11 at 101.00 A 1,029,130 5.250%, 11/01/18 - NPFG Insured 2,230 Florida Ports Financing Commission, Revenue Bonds, State 4/10 at 101.00 AA+ 2,241,150 Transportation Trust Fund - Intermodal Program, Series 1999, 5.500%, 10/01/23 - FGIC Insured (Alternative Minimum Tax) 940 Florida State Board of Education, Full Faith and Credit, 6/11 at 101.00 AAA 958,292 Public Education Capital Outlay Bonds, Series 2001C, 5.125%, 6/01/29 - FGIC Insured 2,000 Greater Orlando Aviation Authority, Florida, Airport 10/13 at 100.00 AAA 2,112,680 Facilities Revenue Refunding Bonds, Series 2003A, 5.000%, 10/01/17 - FSA Insured 5,200 Gulf Breeze, Florida, Local Government Loan Program, 12/11 at 101.00 N/R 5,281,848 Remarketed 6-1-2001, Series 1985E, 4.750%, 12/01/20 (Mandatory put 12/01/11) - FGIC Insured 740 Gulf Breeze, Florida, Local Government Loan Program, 1/10 at 100.00 N/R 742,042 Remarketed 6-3-1996, Series 1985B, 5.900%, 12/01/15 (Mandatory put 12/01/10) - FGIC Insured 700 Gulf Breeze, Florida, Local Government Loan Program, 12/09 at 100.00 N/R 700,959 Remarketed 6-3-1996, Series 1985C, 5.900%, 12/01/15 - FGIC Insured 1,500 Gulf Breeze, Florida, Local Government Loan Program, 12/10 at 101.00 N/R 1,523,430 Remarketed 7-3-2000, Series 1985E, 5.750%, 12/01/20 (Mandatory put 12/01/19) - FGIC Insured 1,915 Halifax Hospital Medical Center, Florida, Revenue Bonds, 6/18 at 100.00 AAA 1,920,094 Series 2006, 5.500%, 6/01/38 - FSA Insured 2,500 Hillsborough County Industrial Development Authority, Florida, No Opt. Call A 2,685,100 Industrial Development Revenue Bonds, University Community Hospital, Series 1994, 6.500%, 8/15/19 - NPFG Insured 1,000 Hillsborough County School Board, Florida, Certificates of 7/15 at 100.00 AA- 1,017,700 Participation, Master Lease Program, Series 2005A, 5.000%, 7/01/26 - NPFG Insured 6,000 Hillsborough County School Board, Florida, Certificates of 7/13 at 100.00 AA- 6,049,560 Participation, Series 2003, 5.000%, 7/01/29 - NPFG Insured 2,000 Hillsborough County, Florida, Community Investment Tax Revenue 11/13 at 101.00 AA+ 2,037,800 Bonds, Series 2004, 5.000%, 5/01/23 - AMBAC Insured 1,000 Hillsborough County, Florida, Revenue Refunding Bonds, Tampa 10/15 at 100.00 AA+ 1,039,490 Bay Arena, Series 2005, 5.000%, 10/01/25 - FGIC Insured 2,595 Indian River County School Board, Florida, Certificates of 7/15 at 100.00 A+ 2,680,116 Participation, Series 2005, 5.000%, 7/01/22 - NPFG Insured Indian Trace Development District, Florida, Water Management Special Benefit Assessment Bonds, Series 2005: 1,645 5.000%, 5/01/25 - NPFG Insured 5/15 at 102.00 Baa1 1,485,090 1,830 5.000%, 5/01/27 - NPFG Insured 5/15 at 102.00 Baa1 1,611,699 4,425 Jacksonville Economic Development Commission, Florida, 11/12 at 100.00 Aa2 4,495,313 Healthcare Facilities Revenue Bonds, Mayo Clinic, Series 2001C, 5.500%, 11/15/36 - NPFG Insured 1,480 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/13 at 100.00 AA- 1,552,298 Bonds, Series 2003, 5.250%, 10/01/20 - NPFG Insured 3,205 Jacksonville, Florida, GNMA Collateralized Housing Revenue 3/10 at 100.00 AAA 3,207,628 Refunding Bonds, Windermere Manor Apartments, Series 1993A, 5.875%, 3/20/28 1,000 JEA, Florida, Water and Sewerage System Revenue Bonds, Series 10/13 at 100.00 AA- 1,095,120 2004A, 5.000%, 10/01/14 - FGIC Insured 1,500 JEA, Florida, Water and Sewerage System Revenue Bonds, Series 10/14 at 100.00 AA- 1,544,385 2007B, 5.000%, 10/01/24 - NPFG Insured 1,450 Jupiter, Florida, Water Revenue Bonds, Series 2003, 5.000%, 10/13 at 100.00 AA+ 1,496,125 10/01/22 - AMBAC Insured Lakeland, Florida, Utility Tax Revenue Bonds, Series 2003B: 1,730 5.000%, 10/01/18 - AMBAC Insured 10/12 at 100.00 N/R 1,835,997 2,000 5.000%, 10/01/19 - AMBAC Insured 10/12 at 100.00 N/R 2,022,640 1,230 Lee County, Florida, Local Option Gas Tax Revenue Bonds, 10/14 at 100.00 A3 1,250,147 Series 2004, 5.000%, 10/01/20 - FGIC Insured 1,505 Lee County, Florida, Transportation Facilities Revenue Bonds, 10/14 at 100.00 A- 1,568,752 Series 2004B, 5.000%, 10/01/21 - AMBAC Insured
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA (continued) $ 1,000 Lee Memorial Health System, Florida, Hospital Revenue Bonds, 4/17 at 100.00 A $ 943,350 Series 2007A, 5.000%, 4/01/32 - NPFG Insured 3,000 Leesburg, Florida, Utility Revenue Bonds, Series 2007, 10/17 at 100.00 A 2,912,010 5.000%, 10/01/37 - NPFG Insured 2,000 Manatee County, Florida, Public Utilities Revenue Bonds, 10/13 at 100.00 Aa3 2,126,820 Series 2003, 5.125%, 10/01/20 - NPFG Insured Marco Island, Florida, Water Utility System Revenue Bonds, Series 2003: 1,350 5.250%, 10/01/17 - NPFG Insured 10/13 at 100.00 A 1,503,414 1,000 5.250%, 10/01/18 - NPFG Insured 10/13 at 100.00 A 1,078,560 2,000 5.000%, 10/01/27 - NPFG Insured 10/13 at 100.00 A 2,020,460 1,425 Miami-Dade County Housing Finance Authority, Florida, 6/11 at 100.00 AAA 1,439,735 Multifamily Mortgage Revenue Bonds, Country Club Villas II Project, Series 2001-1A, 5.750%, 7/01/27 - FSA Insured (Alternative Minimum Tax) 2,150 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA 2,085,414 International Airport, Series 2002A, 5.125%, 10/01/35 - FSA Insured (Alternative Minimum Tax) Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2002: 5,615 5.750%, 10/01/19 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 A 5,804,787 35,920 5.375%, 10/01/32 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 A 35,614,321 12,930 Miami-Dade County, Florida, Public Facilities Revenue Bonds, 12/15 at 100.00 A1 12,242,900 Jackson Health System, Series 2005A, 5.000%, 6/01/32 - NPFG Insured 5,320 Miami-Dade County, Florida, Public Facilities Revenue Bonds, 6/15 at 100.00 A1 5,246,158 Jackson Health System, Series 2005B, 5.000%, 6/01/25 - NPFG Insured 18,000 Miami-Dade County, Florida, Subordinate Special Obligation 1/10 at 54.33 A 9,068,580 Bonds, Series 1997A, 0.000%, 10/01/21 - NPFG Insured 3,000 Miami-Dade County, Florida, Transit System Sales Surtax 7/18 at 100.00 AAA 3,028,170 Revenue Bonds, Series 2008, 5.000%, 7/01/35 - FSA Insured 2,000 Miami-Dade County, Florida, Water and Sewer System Revenue No Opt. Call AAA 2,215,060 Bonds, Series 2008B, 5.250%, 10/01/22 - FSA 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 - NPFG Insured 8/15 at 102.00 A 1,338,569 2,145 5.000%, 8/01/29 - NPFG Insured 8/15 at 102.00 A 2,170,955 2,000 Okaloosa County, Florida, Water and Sewer Revenue Bonds, 7/16 at 100.00 AAA 2,022,460 Series 2006, 5.000%, 7/01/36 - FSA Insured 1,000 Orange County School Board, Florida, Certificates of 8/17 at 100.00 AA- 1,018,580 Participation, Series 2007A, 5.000%, 8/01/27 - FGIC Insured 3,180 Orange County, Florida, Sales Tax Revenue Bonds, Series 1/13 at 100.00 AA 3,370,959 2002B, 5.125%, 1/01/19 - FGIC Insured 2,500 Orange County, Florida, Tourist Development Tax Revenue 10/16 at 100.00 A+ 2,534,925 Bonds, Series 2006, 5.000%, 10/01/31 - SYNCORA GTY Insured Osceola County, Florida, Transportation Revenue Bonds, Osceola Parkway, Series 2004: 2,500 5.000%, 4/01/21 - NPFG Insured 4/14 at 100.00 A2 2,557,850 7,820 5.000%, 4/01/23 - NPFG Insured 4/14 at 100.00 A2 7,962,324 1,750 Palm Bay, Florida, Utility System Revenue Bonds, Palm Bay 10/13 at 100.00 A 1,785,910 Utility Corporation, Series 2003, 5.000%, 10/01/20 - NPFG Insured 1,065 Palm Beach County Housing Finance Authority, Florida, 7/12 at 100.00 AAA 1,078,025 Multifamily Housing Revenue Bonds, Westlake Apartments Phase II, Series 2002, 5.150%, 7/01/22 - FSA Insured (Alternative Minimum Tax) 2,150 Palm Beach County School Board, Florida, Certificates of 8/14 at 100.00 AA- 2,190,786 Participation, Series 2004A, 5.000%, 8/01/24 - FGIC Insured 3,000 Palm Beach County School Board, Florida, Certificates of 8/17 at 100.00 AA- 3,044,070 Participation, Series 2007E, 5.000%, 8/01/27 - NPFG Insured 8,000 Palm Beach County Solid Waste Authority, Florida, Revenue No Opt. Call AA 6,953,600 Bonds, Series 2002B, 0.000%, 10/01/14 - AMBAC Insured 2,825 Palm Beach County, Florida, Administrative Complex Revenue No Opt. Call Aa3 2,908,733 Refunding Bonds, Series 1993, 5.250%, 6/01/11 - FGIC Insured
Nuveen Investments 43 NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA (continued) $ 4,000 Palm Beach County, Florida, Revenue Refunding Bonds, Criminal No Opt. Call Aa1 $ 4,102,800 Justice Facilities, Series 1993, 5.375%, 6/01/10 - FGIC Insured Palm Coast, Florida, Water Utility System Revenue Bonds, Series 2003: 1,000 5.250%, 10/01/19 - NPFG Insured 10/13 at 100.00 A 1,040,590 500 5.250%, 10/01/20 - NPFG Insured 10/13 at 100.00 A 517,255 500 5.250%, 10/01/21 - NPFG Insured 10/13 at 100.00 A 515,275 3,000 Pasco County, Florida, Water and Sewer Revenue Bonds, Series 4/16 at 100.00 AAA 3,039,300 2006 Refunding, 5.000%, 10/01/36 - FSA Insured Plantation, Florida, Non-Ad Valorem Revenue Refunding and Improvement Bonds, Series 2003: 2,225 5.000%, 8/15/18 - FSA Insured 8/13 at 100.00 Aa3 2,293,664 1,300 5.000%, 8/15/21 - FSA Insured 8/13 at 100.00 Aa3 1,321,294 1,170 Polk County, Florida, Utility System Revenue Bonds, Series 10/14 at 100.00 A+ 1,196,033 2004A, 5.000%, 10/01/24 - FGIC Insured 1,000 Port Saint Lucie, Florida, Special Assessment Revenue Bonds, 7/17 at 100.00 A 889,390 Southwest Annexation District 1B, Series 2007, 5.000%, 7/01/33 - NPFG Insured Port St. Lucie, Florida, Stormwater Utility System Revenue Refunding Bonds, Series 2002: 1,190 5.250%, 5/01/15 - NPFG Insured 5/12 at 100.00 A 1,278,512 1,980 5.250%, 5/01/17 - NPFG Insured 5/12 at 100.00 A 2,127,272 Port St. Lucie, Florida, Utility System Revenue Bonds, Refunding Series 2009: 3,775 5.250%, 9/01/35 - AGC Insured 9/18 at 100.00 AAA 3,897,839 3,500 5.000%, 9/01/35 - AGC Insured 9/18 at 100.00 AAA 3,569,160 10,000 Port St. Lucie, Florida, Utility System Revenue Bonds, Series 9/11 at 34.97 A (4) 3,435,500 2001, 0.000%, 9/01/29 (Pre-refunded 9/01/11) - NPFG Insured 1,830 Port St. Lucie, Florida, Utility System Revenue Bonds, Series 9/13 at 100.00 A (4) 2,070,865 2003, 5.000%, 9/01/21 (Pre-refunded 9/01/13) - NPFG Insured 1,000 Port St. Lucie, Florida, Utility System Revenue Bonds, Series 9/14 at 100.00 A2 1,026,390 2004, 5.000%, 9/01/21 - NPFG Insured 1,895 Reedy Creek Improvement District, Orange and Osceola 6/15 at 100.00 A 1,920,715 Counties, Florida, General Obligation Bonds, Series 2005B, 5.000%, 6/01/25 - AMBAC Insured Sebring, Florida, Water and Wastewater Revenue Refunding Bonds, Series 2002: 1,360 5.250%, 1/01/17 - FGIC Insured 1/13 at 100.00 A 1,471,942 770 5.250%, 1/01/18 - FGIC Insured 1/13 at 100.00 A 814,083 500 5.250%, 1/01/20 - FGIC Insured 1/13 at 100.00 A 523,685 5,715 Seminole County, Florida, Water and Sewer Revenue Refunding No Opt. Call AAA 6,831,482 and Improvement Bonds, Series 1992, 6.000%, 10/01/19 - NPFG Insured (ETM) 3,530 Seminole County, Florida, Water and Sewer Revenue Refunding No Opt. Call AA 4,032,072 and Improvement Bonds, Series 1992, 6.000%, 10/01/19 - NPFG Insured 4,260 St. Lucie County School Board, Florida, Certificates of 7/14 at 100.00 AAA 4,361,175 Participation, Master Lease Program, Series 2004A, 5.000%, 7/01/24 - FSA Insured St. Lucie County, Florida, Utility System Revenue Refunding Bonds, Series 1993: 5,000 5.500%, 10/01/15 - FGIC Insured (ETM) No Opt. Call N/R (4) 5,638,500 1,200 5.500%, 10/01/21 - FGIC Insured (ETM) No Opt. Call N/R (4) 1,435,068 St. Petersburg, Florida, Sales Tax Revenue Bonds, Professional Sports Facility, Series 2003: 1,475 5.125%, 10/01/20 - FSA Insured 10/13 at 100.00 Aa3 1,584,460 1,555 5.125%, 10/01/21 - FSA Insured 10/13 at 100.00 Aa3 1,663,399 1,300 Sunrise, Florida, Utility System Revenue Refunding Bonds, 4/10 at 100.00 N/R 1,304,641 Series 1996, 5.800%, 10/01/11 - AMBAC Insured 2,500 Tallahassee, Florida, Energy System Revenue Bonds, Series 10/15 at 100.00 AA- 2,544,725 2005, 5.000%, 10/01/29 - NPFG Insured 1,245 Tamarac, Florida, Sales Tax Revenue Bonds, Series 2002, 4/12 at 100.00 A+ 1,253,404 5.000%, 4/01/22 - FGIC Insured 400 Tamarac, Florida, Utility System Revenue Bonds, Series 2009, 10/19 at 100.00 AAA 396,304 5.000%, 10/01/39 1,500 Tampa, Florida, Healthcare System Revenue Bonds, Allegany 1/10 at 100.00 A (4) 1,523,430 Health System - St. Joseph's Hospital, Series 1993, 5.125%, 12/01/23 - NPFG Insured (ETM) 10,255 Tampa, Florida, Revenue Bonds, University of Tampa, Series 4/16 at 100.00 N/R 9,010,351 2006, 5.000%, 4/01/35 - CIFG Insured 1,390 Venice, Florida, General Obligation Bonds, Series 2004, 2/14 at 100.00 A+ 1,432,256 5.000%, 2/01/24 - AMBAC Insured
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA (continued) $ 4,275 Volusia County School Board, Florida, Certificates of 8/15 at 100.00 Aa3 $ 4,370,675 Participation, Series 2005B, 5.000%, 8/01/24 - FSA Insured 2,000 Volusia County, Florida, Gas Tax Revenue Bonds, Series 2004, 10/14 at 100.00 AAA 2,116,920 5.000%, 10/01/21 - FSA Insured 12,000 Volusia County, Florida, School Board Certificates of 8/17 at 100.00 Aa3 12,078,000 Participation, Series 2007, 5.000%, 8/01/32 - FSA Insured (UB) 1,785 Volusia County, Florida, Tax Revenue Bonds, Tourist 12/14 at 100.00 Aa3 1,833,266 Development, Series 2004, 5.000%, 12/01/24 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 378,570 Total Florida 366,276,704 ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 1.6% (1.0% OF TOTAL INVESTMENTS) 1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/14 at 100.00 AAA 1,022,620 2004, 5.000%, 11/01/22 - FSA Insured 10,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/19 at 100.00 AAA 10,127,400 2009B, 5.375%, 11/01/39 - FSA Insured 1,520 College Park Business and Industrial Development Authority, 9/14 at 102.00 AA- 1,613,906 Georgia, Revenue Bonds, Public Safety Project, Series 2004, 5.250%, 9/01/23 - NPFG Insured Fulton County Development Authority, Georgia, Revenue Bonds, Georgia Tech Molecular Science Building, Series 2004: 1,695 5.250%, 5/01/19 - NPFG Insured 5/14 at 100.00 Aa3 1,856,381 1,135 5.250%, 5/01/20 - NPFG Insured 5/14 at 100.00 Aa3 1,239,908 4,500 5.000%, 5/01/36 - NPFG Insured 5/14 at 100.00 Aa3 4,552,380 1,250 Glynn-Brunswick Memorial Hospital Authority, Georgia, Revenue 1/10 at 100.00 AA 1,252,013 Bonds, Southeast Georgia Health Systems, Series 1996, 5.250%, 8/01/13 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 21,100 Total Georgia 21,664,608 ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.2% (0.1% OF TOTAL INVESTMENTS) 170 Idaho Housing Agency, Single Family Mortgage Senior Bonds, No Opt. Call Aaa 178,255 Series 1994B-1, 6.750%, 7/01/22 135 Idaho Housing Agency, Single Family Mortgage Senior Bonds, No Opt. Call Aaa 139,956 Series 1994B-2, 6.900%, 7/01/26 (Alternative Minimum Tax) 180 Idaho Housing Agency, Single Family Mortgage Senior Bonds, 1/10 at 100.00 Aaa 181,109 Series 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 - NPFG Insured 7/16 at 100.00 Aa3 1,062,140 1,065 5.000%, 7/15/24 - NPFG Insured 7/16 at 100.00 Aa3 1,126,355 ------------------------------------------------------------------------------------------------------------------------------------ 2,550 Total Idaho 2,687,815 ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 5.3% (3.4% OF TOTAL INVESTMENTS) 1,050 Bedford Park, Illinois, General Obligation Bonds, Series 12/14 at 100.00 AAA 1,129,307 2004A, 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 A1 4,714,223 4,870 5.500%, 1/01/18 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 A1 4,959,170 7,200 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 A1 7,527,096 O'Hare International Airport, Series 2005A, 5.250%, 1/01/24 - NPFG Insured 7,025 De Witt, Ford, Livingston, Logan, Mc Lean and Tazewell 12/17 at 100.00 Aa3 5,568,858 Community College District 540, Illinois, General Obligation Bonds, Series 2007, 3.000%, 12/01/26 - FSA Insured 10,000 Illinois Development Finance Authority, Revenue Bonds, 11/09 at 100.50 A 10,010,600 Provena Health, Series 1998A, 5.500%, 5/15/21 - NPFG Insured 2,095 Illinois Educational Facilities Authority, Revenue Bonds, 12/09 at 100.00 Baa1 2,096,152 Robert Morris College, Series 2000, 5.800%, 6/01/30 - NPFG Insured 22,510 Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AA- 23,215,689 Series 2002, 5.125%, 2/01/27 - FGIC Insured 20,045 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 4,640,217 Bonds, McCormick Place Expansion Project, Series 2002A, 0.000%, 12/15/35 - NPFG Insured
Nuveen Investments 45 NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) Schaumburg, Illinois, General Obligation Bonds, Series 2004B: $ 4,260 5.000%, 12/01/22 - FGIC Insured 12/14 at 100.00 AA+ $ 4,489,231 2,365 5.000%, 12/01/23 - FGIC Insured 12/14 at 100.00 AA+ 2,482,990 4,000 Southwestern Illinois Development Authority, School Revenue No Opt. Call A+ 1,721,440 Bonds, Triad School District 2, Madison County, Illinois, Series 2006, 0.000%, 10/01/25 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 90,035 Total Illinois 72,554,973 ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.2% (2.0% OF TOTAL INVESTMENTS) 2,030 Decatur Township-Marion County Multi-School Building 7/13 at 100.00 AA+ (4) 2,275,711 Corporation, 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 A+ 7,948,720 Series 2007A, 5.000%, 1/01/42 - NPFG Insured 20,000 Indianapolis Local Public Improvement Bond Bank, Indiana, No Opt. Call AA 8,192,600 Series 1999E, 0.000%, 2/01/28 - AMBAC Insured 3,250 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 3,610,620 Waterworks Project, Series 2002A, 5.250%, 7/01/33 (Pre-refunded 7/01/12) - NPFG Insured 1,340 Monroe-Gregg Grade School Building Corporation, Morgan 1/14 at 100.00 AAA 1,514,280 County, 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 AA- 5,080,750 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 Aa1 10,363,300 5.000%, 7/01/19 - NPFG Insured 3,705 Whitley County Middle School Building Corporation, Columbia 7/13 at 100.00 Aa3 (4) 4,180,537 City, Indiana, First Mortgage Bonds, Series 2003, 5.000%, 7/15/16 (Pre-refunded 7/15/13) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 53,325 Total Indiana 43,166,518 ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.7% (0.4% OF TOTAL INVESTMENTS) 2,055 Kansas Turnpike Authority, Revenue Bonds, Series 2004A-2, 9/14 at 101.00 AAA 2,196,487 5.000%, 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 Aa3 2,264,906 4,835 5.000%, 9/01/29 - FSA Insured 9/14 at 100.00 Aa3 5,079,071 ------------------------------------------------------------------------------------------------------------------------------------ 9,035 Total Kansas 9,540,464 ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 3.0% (1.9% OF TOTAL INVESTMENTS) 3,870 Kenton County School District Finance Corporation, Kentucky, 6/14 at 100.00 Aa3 4,086,488 School Building Revenue Bonds, Series 2004, 5.000%, 6/01/20 - NPFG Insured Kentucky State Property and Buildings Commission, Revenue Bonds, Project 93, Refunding Series 2009: 3,860 5.250%, 2/01/20 - AGC Insured 2/19 at 100.00 AAA 4,313,396 10,000 5.250%, 2/01/24 - AGC Insured 2/19 at 100.00 AAA 10,843,800 7,500 Kentucky Turnpike Authority, Economic Development Road 7/16 at 100.00 AA+ 7,928,100 Revenue 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 AA- 13,607,972 Kentucky, Sewer and Drainage System Revenue Bonds, Series 2001A, 5.500%, 5/15/34 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 38,210 Total Kentucky 40,779,756 ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 4.5% (2.9% OF TOTAL INVESTMENTS) 5,000 DeSoto Parish, Louisiana, Pollution Control Revenue Refunding 3/10 at 102.00 BBB 5,001,700 Bonds, Cleco Utility Group Inc. Project, Series 1999, 5.875%, 9/01/29 - AMBAC Insured 3,025 Lafayette City and Parish, Louisiana, Utilities Revenue 11/14 at 100.00 A1 3,187,896 Bonds, Series 2004, 5.250%, 11/01/22 - NPFG Insured 4,545 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 A 4,621,720 Rouge General Hospital, Series 2004, 5.250%, 7/01/24 - NPFG 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 2,468,160 4,415 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AA 4,534,514 5,000 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AA 5,150,150
46 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA (continued) Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006A: $ 3,300 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA $ 3,243,405 35,725 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA 33,497,547 38 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AA 28,776 Residuals 660-1, 15.601%, 5/01/41 - FGIC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ 63,448 Total Louisiana 61,733,868 ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 0.2% (0.2% OF TOTAL INVESTMENTS) 3,000 Maine Health and Higher Educational Facilities Authority, 7/13 at 100.00 AAA 3,324,120 Revenue Bonds, Series 2003B, 5.000%, 7/01/28 (Pre-refunded 7/01/13) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 0.3% (0.2% OF TOTAL INVESTMENTS) 5,345 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 Baa3 4,746,788 Revenue Bonds, Series 2006A, 5.250%, 9/01/28 - SYNCORA GTY Insured ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 4.6% (2.9% OF TOTAL INVESTMENTS) 22,500 Massachusetts Development Finance Authority, Revenue Bonds, 1/12 at 101.00 N/R (4) 24,804,000 WGBH 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 11,883,410 Revenue Bonds, Series 2005A, 5.000%, 8/15/23 - FSA Insured (UB) 7,255 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 AAA 6,705,434 Bonds, Series 2007A, 4.500%, 8/01/46 - FSA Insured (UB) 15,000 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, 1/14 at 100.00 A (4) 16,918,050 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 A+ (4) 1,754,504 Project Revenue Bonds, Series 2004-1, 5.375%, 11/01/20 (Pre-refunded 11/01/14) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 57,255 Total Massachusetts 62,065,398 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 5.4% (3.5% OF TOTAL INVESTMENTS) 5,490 Detroit City School District, Wayne County, Michigan, No Opt. Call AAA 6,095,986 Unlimited Tax School Building and Site Improvement Bonds, Series 2001A, 6.000%, 5/01/29 - FSA Insured (UB) 6,000 Detroit, Michigan, General Obligation Bonds, Series 2001A-1, 10/11 at 100.00 A 5,585,640 5.375%, 4/01/18 - NPFG Insured 7,420 Detroit, Michigan, Senior Lien Water Supply System Revenue 1/10 at 100.00 A+ 7,419,777 Bonds, Series 1997A, 5.000%, 7/01/27 - NPFG 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 16,124,726 20,000 5.875%, 7/01/27 (Pre-refunded 1/01/10) - FGIC Insured 1/10 at 101.00 Aaa 20,383,000 1,085 Grand Rapids Community College, Kent County, Michigan, General 5/13 at 100.00 AA 1,176,128 Obligation Refunding Bonds, Series 2003, 5.250%, 5/01/20 - AMBAC Insured 6,850 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/09 at 100.50 A 6,920,555 Metropolitan Wayne County Airport, Series 1998A, 5.375%, 12/01/15 - NPFG Insured (Alternative Minimum Tax) 10,000 Wayne County, Michigan, Limited Tax General Obligation Airport 12/11 at 101.00 A 10,138,700 Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.250%, 12/01/25 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 72,670 Total Michigan 73,844,512 ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.8% (1.2% OF TOTAL INVESTMENTS) 5,000 City of Minneapolis, Minnesota, Health Care System Revenue 11/18 at 100.00 AAA 5,644,850 Bonds, Fairview Health Services, Series 2008B, 6.500%, 11/15/38 - AGC Insured 4,000 Northern Municipal Power Agency, Minnesota, Electric System No Opt. Call AAA 4,400,400 Revenue Bonds, Refunding Series 2009A, 5.000%, 1/01/15 - AGC Insured 13,020 Saint Paul Housing and Redevelopment Authority, Minnesota, 12/11 at 102.00 Aaa 14,821,056 Multifamily Housing Revenue Bonds, Marian Center Project, Series 2001A, 6.450%, 6/20/43 (Pre-refunded 12/20/11) ------------------------------------------------------------------------------------------------------------------------------------ 22,020 Total Minnesota 24,866,306 ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 2.4% (1.5% OF TOTAL INVESTMENTS) 27,125 Lincoln, Nebraska, Electric System Revenue Bonds, Series 9/17 at 100.00 AA 25,681,679 2007A, 4.500%, 9/01/37 - FGIC Insured (UB)
Nuveen Investments 47 NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA (continued) $ 5,000 Municipal Energy Agency of Nebraska, Power Supply System 4/19 at 100.00 AAA $ 5,309,050 Revenue and Refunding Bonds, Series 2009A, 5.375%, 4/01/39 - BHAC Insured 1,000 Nebraska Public Power District, General Revenue Bonds, Series 1/15 at 100.00 AAA 1,032,080 2005A, 5.000%, 1/01/25 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 33,125 Total Nebraska 32,022,809 ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 5.8% (3.7% OF TOTAL INVESTMENTS) 8,475 Clark County, Nevada, General Obligation Bank Bonds, Southern 12/12 at 100.00 AA+ 8,537,207 Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32 - NPFG Insured 3,630 Clark County, Nevada, General Obligation Bank Bonds, Southern 12/12 at 100.00 AA+ (4) 4,059,320 Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32 (Pre-refunded 12/01/12) - NPFG Insured 7,370 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/14 at 100.00 Aa3 7,586,604 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 Caa2 3,075,150 13,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 Caa2 2,665,130 14,985 Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 6/12 at 100.00 A 13,903,682 5.375%, 6/01/32 - FGIC Insured 25,300 Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 6/12 at 100.00 Baa1 (4) 28,055,422 5.375%, 6/01/32 (Pre-refunded 6/01/12) - FGIC Insured 10,000 Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, 6/12 at 100.00 Baa3 (4) 11,014,700 Reno Transportation Rail Access Corridor Project, Series 2002, 5.125%, 6/01/27 (Pre-refunded 6/01/12) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 97,760 Total Nevada 78,897,215 ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 2.0% (1.3% OF TOTAL INVESTMENTS) Essex County Improvement Authority, New Jersey, Guaranteed Revenue Bonds, Project Consolidation, Series 2004: 2,000 5.125%, 10/01/21 - NPFG Insured 10/14 at 100.00 A1 2,101,060 2,250 5.125%, 10/01/22 - NPFG Insured 10/14 at 100.00 A1 2,353,253 New Jersey Economic Development Authority, Revenue Bonds, Motor Vehicle Surcharge, Series 2004A: 3,850 5.000%, 7/01/22 - NPFG Insured 7/14 at 100.00 A 3,941,437 3,850 5.000%, 7/01/23 - NPFG Insured 7/14 at 100.00 A 3,938,165 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A: 8,250 5.000%, 1/01/19 - FGIC Insured 7/13 at 100.00 A+ 8,765,790 2,000 5.000%, 1/01/23 - FSA Insured (UB) 7/13 at 100.00 AAA 2,076,520 3,320 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 3,542,141 5.000%, 1/01/21 - FSA Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ 25,520 Total New Jersey 26,718,366 ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 1.3% (0.8% OF TOTAL INVESTMENTS) 3,660 San Juan County, New Mexico, Subordinate Gross Receipts Tax 6/15 at 100.00 A+ 3,771,885 Revenue Bonds, Series 2005, 5.000%, 6/15/25 - NPFG Insured 13,600 University of New Mexico, System Improvement Subordinated 6/17 at 100.00 AAA 13,805,224 Lien Revenue Bonds, Series 2007A, 5.000%, 6/01/36 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 17,260 Total New Mexico 17,577,109 ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 6.8% (4.4% OF TOTAL INVESTMENTS) 1,880 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 A 1,919,010 Mortgage 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 3,502,284 Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 - AMBAC Insured 3,820 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 3,221,215 Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured 12,500 Long Island Power Authority, New York, Electric System 6/16 at 100.00 A 12,845,125 General Revenue Bonds, Series 2006A, 5.000%, 12/01/25 - FGIC Insured 6,900 Long Island Power Authority, New York, Electric System 11/16 at 100.00 A 6,236,979 Revenue Bonds, Series 2006F, 4.250%, 5/01/33 - NPFG Insured
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) 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- $ 1,540,784 5,000 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00 AA- 5,095,950 2,615 New York City Industrial Development Agency, New York, 3/19 at 100.00 AAA 3,115,511 Revenue Bonds, Yankee Stadium Project Pilot, Series 2009A, 7.000%, 3/01/49 - AGC Insured 5,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AA 5,255,050 Series 2005F-1, 5.000%, 9/01/21 - AMBAC Insured 10,000 New York City, New York, General Obligation Bonds, Fiscal 4/15 at 100.00 AA 10,310,500 Series 2005M, 5.000%, 4/01/26 - FGIC Insured 5,000 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 A+ 5,172,100 Series 2005F, 5.000%, 1/01/26 - AMBAC Insured 14,000 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 14,353,080 Series 2005G, 5.000%, 1/01/30 - FSA Insured 3,650 New York State Urban Development Corporation, Service 3/15 at 100.00 AAA 3,826,222 Contract Revenue Bonds, Series 2005B, 5.000%, 3/15/25 - FSA Insured (UB) 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 1,044,380 5,000 5.000%, 3/15/25 - FGIC Insured 3/14 at 100.00 AAA 5,200,250 10,000 Triborough Bridge and Tunnel Authority, New York, Subordinate 11/12 at 100.00 Aa3 10,163,200 Lien General Purpose Revenue Refunding Bonds, Series 2002E, 5.000%, 11/15/32 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 91,200 Total New York 92,801,640 ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 1.2% (0.8% 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 2,140,485 2,575 5.000%, 5/01/26 - FGIC Insured 5/14 at 100.00 A 2,632,217 5,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 5,451,400 Revenue Bonds, Series 2003A, 5.250%, 1/01/16 - FSA Insured Raleigh Durham Airport Authority, North Carolina, Airport Revenue Bonds, Series 2005A: 3,205 5.000%, 5/01/23 - AMBAC Insured 5/15 at 100.00 Aa3 3,320,252 3,295 5.000%, 5/01/24 - AMBAC Insured 5/15 at 100.00 Aa3 3,400,440 ------------------------------------------------------------------------------------------------------------------------------------ 16,190 Total North Carolina 16,944,794 ------------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 0.5% (0.3% OF TOTAL INVESTMENTS) Grand Forks, North Dakota, Sales Tax Revenue Bonds, Alerus Project, Series 2005A: 2,195 5.000%, 12/15/22 - NPFG Insured 12/15 at 100.00 A1 2,303,366 1,355 5.000%, 12/15/23 - NPFG Insured 12/15 at 100.00 A1 1,410,785 3,000 5.000%, 12/15/24 - NPFG Insured 12/15 at 100.00 A1 3,115,320 ------------------------------------------------------------------------------------------------------------------------------------ 6,550 Total North Dakota 6,829,471 ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 3.7% (2.4% OF TOTAL INVESTMENTS) 2,650 Cleveland State University, Ohio, General Receipts Bonds, 6/14 at 100.00 A+ 2,693,010 Series 2004, 5.250%, 6/01/24 - FGIC Insured 2,000 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 2,327,860 Obligation Bonds, Series 2004, 5.250%, 12/01/25 (Pre-refunded 12/01/14) - FSA Insured 2,385 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/14 at 100.00 BBB+ 2,431,341 Project, Series 2004A, 5.000%, 12/01/22 - AMBAC Insured 2,205 Hamilton City School District, Ohio, General Obligation 6/15 at 100.00 Baa1 2,269,804 Bonds, Series 2005, 5.000%, 12/01/24 - NPFG Insured 19,595 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 A2 17,729,360 Series 2006, 4.250%, 12/01/32 - AMBAC Insured 20,100 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica 11/09 at 101.00 N/R 19,995,480 Healthcare Obligated Group, Series 1999, 5.375%, 11/15/39 - AMBAC Insured 3,000 Ross Local School District, Butler County, Ohio, General 12/13 at 100.00 Aa3 (4) 3,410,910 Obligation Bonds, Series 2003, 5.000%, 12/01/28 (Pre-refunded 12/01/13) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 51,935 Total Ohio 50,857,765 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 49 NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 2.5% (1.6% OF TOTAL INVESTMENTS) $ 3,500 Oklahoma Capitol Improvement Authority, State Facilities 7/15 at 100.00 AA $ 3,605,910 Revenue Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured 2,150 Oklahoma Housing Finance Agency, GNMA Collateralized Single No Opt. Call AAA 2,325,935 Family Mortgage Revenue Bonds, Series 1987A, 7.997%, 8/01/18 (Alternative Minimum Tax) 21,000 Oklahoma Municipal Power Authority, Power Supply System 1/17 at 100.00 A 18,325,020 Revenue Bonds, Series 2007, 4.500%, 1/01/47 - FGIC Insured 5,245 Oklahoma State Industries Authority, Revenue Bonds, Oklahoma 2/11 at 100.00 A1 5,290,998 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 A1 4,940,414 2004, 5.000%, 7/01/22 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 36,775 Total Oklahoma 34,488,277 ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 0.3% (0.2% OF TOTAL INVESTMENTS) 2,535 Oregon Department of Administrative Services, Certificates of 5/15 at 100.00 AAA 2,649,810 Participation, Series 2005A, 5.000%, 5/01/25 - FSA Insured 755 Oregon Housing and Community Services Department, Single 1/10 at 100.00 Aa2 755,792 Family Mortgage Revenue Bonds, Series 1995A, 6.450%, 7/01/26 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 3,290 Total Oregon 3,405,602 ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.8% (1.8% OF TOTAL INVESTMENTS) 7,925 Commonwealth Financing Authority, Pennsylvania, State 6/16 at 100.00 AAA 8,272,274 Appropriation Lease Bonds, Series 2006A, 5.000%, 6/01/26 - FSA Insured (UB) 1,800 Pennsylvania Higher Educational Facilities Authority, Revenue 5/15 at 100.00 A+ 1,835,532 Bonds, Drexel University, Series 2005A, 5.000%, 5/01/28 - NPFG Insured 11,740 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 10,860,557 Bonds, School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 - FSA Insured (UB) 2,625 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 Aa3 2,673,510 Series 2006A, 5.000%, 12/01/26 - AMBAC Insured 6,335 Radnor Township School District, Delaware County, 8/15 at 100.00 Aa3 6,620,899 Pennsylvania, 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 (UB) 1/16 at 100.00 AAA 3,495,010 3,450 5.000%, 1/15/23 - FSA Insured (UB) 1/16 at 100.00 AAA 3,647,340 ------------------------------------------------------------------------------------------------------------------------------------ 37,160 Total Pennsylvania 37,405,122 ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.9% (0.5% OF TOTAL INVESTMENTS) 2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 2,877,600 Series 2005RR, 5.000%, 7/01/30 (Pre-refunded 7/01/15) - SYNCORA GTY Insured 2,000 Puerto Rico Highway and Transportation Authority, Highway 7/13 at 100.00 BBB 2,011,100 Revenue Bonds, Series 2003G, 5.250%, 7/01/19 - FGIC Insured 1,550 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, No Opt. Call BBB- 1,541,940 8/01/21 - CIFG Insured 36,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call AA- 5,220,720 Revenue Bonds, Series 2007A, 0.000%, 8/01/42 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 42,050 Total Puerto Rico 11,651,360 ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 1.9% (1.2% OF TOTAL INVESTMENTS) 2,195 Providence Housing Development Corporation, Rhode Island, 1/10 at 100.00 A 2,198,205 FHA-Insured Section 8 Assisted Mortgage Revenue Refunding Bonds, Barbara Jordan Apartments, Series 1994A, 6.750%, 7/01/25 - NPFG Insured 20,475 Rhode Island Depositors Economic Protection Corporation, 2/11 at 100.00 A (4) 21,650,878 Special Obligation Refunding Bonds, Series 1993B, 5.250%, 8/01/21 (Pre-refunded 2/01/11) - NPFG Insured 1,405 Rhode Island Health & Educational Building Corporation, 9/14 at 100.00 A2 1,466,441 Higher Education Auxiliary Enterprise Revenue Bonds, Series 2004A, 5.500%, 9/15/24 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 24,075 Total Rhode Island 25,315,524 ------------------------------------------------------------------------------------------------------------------------------------
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 5.5% (3.5% OF TOTAL INVESTMENTS) $ 14,650 Anderson County School District 5, South Carolina, General 2/18 at 100.00 AAA $ 15,780,394 Obligation Bonds, Series 2008, Trust 1181, 9.516%, 2/01/38 - FSA Insured (IF) 10,000 Beaufort County, South Carolina, Tax Increment Bonds, New 12/12 at 100.00 A 10,082,000 River Redevelopment Project, Series 2002, 5.000%, 6/01/27 - NPFG Insured Medical University Hospital Authority, South Carolina, FHA-Insured Mortgage Revenue Bonds, Series 2004A: 2,000 5.250%, 8/15/22 - NPFG Insured 8/14 at 100.00 A 2,060,220 2,105 5.250%, 8/15/23 - NPFG Insured 8/14 at 100.00 A 2,164,908 3,685 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call N/R 2,998,742 Revenue Bonds, Series 1988A, 0.000%, 1/01/13 - AMBAC Insured (ETM) 7,955 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call N/R 6,787,046 Revenue Bonds, Series 1988A, 0.000%, 1/01/13 - AMBAC Insured 8,000 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- 8,214,400 Industrial Revenue Bonds, South Carolina Electric and Gas Company, Series 2002A, 5.200%, 11/01/27 - AMBAC Insured 10,000 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- 9,719,200 Industrial 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 10/16 at 100.00 A1 16,619,050 Bonds, Series 2007A, 4.500%, 10/01/34 - SYNCORA GTY Insured ------------------------------------------------------------------------------------------------------------------------------------ 75,895 Total South Carolina 74,425,960 ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 0.5% (0.3% OF TOTAL INVESTMENTS) 6,455 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/11 at 100.00 AAA 6,555,955 Revenue Bonds, Series 2001A, 5.500%, 3/01/18 - FSA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 10.8% (6.9% OF TOTAL INVESTMENTS) 22,650 Brazos River Authority, Texas, Revenue Refunding Bonds, 11/09 at 101.00 BBB+ 22,677,180 Houston Industries Inc., Series 1998C, 5.125%, 5/01/19 - AMBAC Insured 521 Capital Area Housing Finance Corporation, Texas, FNMA Backed 4/12 at 106.00 Aaa 532,206 Single 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 11/09 at 100.00 A+ 12,506,375 Bonds, Series 2000A, 6.125%, 11/01/35 - FGIC Insured (Alternative Minimum Tax) 25,000 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 A 22,717,750 Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 - NPFG Insured 4,671 Houston Housing Finance Corporation, Texas, GNMA 9/11 at 105.00 Aaa 4,812,718 Collateralized Mortgage Multifamily Housing Revenue Bonds, RRG Apartments Project, Series 2001, 6.350%, 3/20/42 Houston, Texas, First Lien Combined Utility System Revenue Bonds, Series 2004A: 4,000 5.250%, 5/15/24 - FGIC Insured 5/14 at 100.00 AA 4,206,200 5,000 5.250%, 5/15/25 - NPFG Insured 5/14 at 100.00 AA 5,245,700 17,500 Houston, Texas, Hotel Occupancy Tax and Special Revenue 9/11 at 100.00 A- 17,592,925 Bonds, Convention and Entertainment Project, Series 2001B, 5.250%, 9/01/33 - AMBAC Insured 900 Houston, Texas, Subordinate Lien Airport System Revenue 7/10 at 100.00 AAA 901,944 Bonds, Series 2000A, 5.625%, 7/01/30 - FSA Insured (Alternative Minimum Tax) 23,865 Jefferson County Health Facilities Development Corporation, 8/11 at 100.00 N/R 23,412,997 Texas, 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 A1 (4) 149,205 Improvement Bonds, Series 2001A, 5.000%, 5/15/21 (Pre-refunded 5/15/11) - NPFG Insured 8,065 Lower Colorado River Authority, Texas, Revenue Refunding and 5/11 at 100.00 A1 8,167,909 Improvement Bonds, Series 2001A, 5.000%, 5/15/21 - NPFG 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 AAA 3,266,119 3,375 5.500%, 10/01/19 - FGIC Insured (Alternative Minimum Tax) 10/11 at 100.00 AAA 3,430,350 7,205 San Antonio, Texas, Airport System Improvement Revenue Bonds, 7/11 at 101.00 A+ 7,434,047 Series 2001, 5.375%, 7/01/15 - FGIC Insured (Alternative Minimum Tax)
Nuveen Investments 51 NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 7,550 Waco Health Facilities Development Corporation, Texas, 8/16 at 100.00 A $ 7,259,023 Hillcrest Health System Project, FHA Insured Mortgage Revenue Bonds, Series 2006A, 5.000%, 8/01/31 - NPFG Insured 1,840 Ysleta Independent School District Public Facility 11/09 at 100.00 AA- 1,848,573 Corporation, Texas, Lease Revenue Refunding Bonds, Series 2001, 5.375%, 11/15/24 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 147,987 Total Texas 146,161,221 ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 1.3% (0.8% OF TOTAL INVESTMENTS) 2,000 Clearfield City, Utah, Sales Tax Revenue Bonds, Series 2003, 7/13 at 100.00 AA- (4) 2,250,120 5.000%, 7/01/28 (Pre-refunded 7/01/13) - FGIC Insured 15,000 Utah Transit Authority, Sales Tax Revenue Bonds, Series 6/18 at 100.00 AAA 15,633,900 2008A, 5.000%, 6/15/32 - FSA Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ 17,000 Total Utah 17,884,020 ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 1.2% (0.8% OF TOTAL INVESTMENTS) 1,035 Loudoun County Industrial Development Authority, Virginia, 6/14 at 100.00 AAA 1,142,837 Lease Revenue Bonds, Public Safety Facilities, Series 2003A, 5.250%, 12/15/20 - FSA Insured 4,840 Metropolitan Washington D.C. Airports Authority, Airport 10/11 at 101.00 AA- 4,972,857 System Revenue Bonds, Series 2001A, 5.500%, 10/01/19 - NPFG Insured (Alternative Minimum Tax) 10,000 Virginia Housing Development Authority, Commonwealth Mortgage 7/11 at 100.00 AAA 10,085,700 Bonds, Series 2001H-1, 5.375%, 7/01/36 - NPFG Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ 15,875 Total Virginia 16,201,394 ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 4.0% (2.6% OF TOTAL INVESTMENTS) 2,500 Grant County Public Utility District 2, Washington, Revenue 1/15 at 100.00 Aa2 2,539,650 Bonds, Wanapum Hydroelectric Development, Series 2005A, 5.000%, 1/01/29 - FGIC Insured 3,500 King County School District 401, Highline, Washington, 12/14 at 100.00 AA+ 3,695,790 General Obligation Bonds, Series 2004, 5.000%, 10/01/24 - FGIC Insured 5,000 King County, Washington, General Obligation Sewer Bonds, 1/19 at 100.00 AAA 5,854,050 Series 2009, Trust 1W, 13.696%, 1/01/39 - AGC Insured (IF) 10,000 King County, Washington, Sewer Revenue Bonds, Series 2007, 7/17 at 100.00 AAA 10,203,600 5.000%, 1/01/42 - FSA Insured 4,345 King County, Washington, Sewer Revenue Bonds, Tender Option 7/17 at 100.00 AAA 4,635,681 Bond Trust 3090, 13.238%, 1/01/39 - FSA Insured (IF) 3,195 Kitsap County, Washington, Limited Tax General Obligation 7/10 at 100.00 AA- (4) 3,304,589 Bonds, Series 2000, 5.500%, 7/01/25 (Pre-refunded 7/01/10) - AMBAC Insured 4,250 Snohomish County Public Utility District 1, Washington, No Opt. Call Aaa 5,264,177 Generation 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 - SYNCORA GTY Insured 12/16 at 100.00 AA 4,071,624 4,085 5.000%, 12/01/25 - SYNCORA GTY Insured 12/16 at 100.00 AA 4,255,385 4,290 5.000%, 12/01/26 - SYNCORA GTY Insured 12/16 at 100.00 AA 4,450,360 5,945 Washington State, General Obligation Bonds, Series 2009, 7/16 at 100.00 AAA 6,645,440 Trust 1212, 13.208%, 7/01/31 - FSA Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ 51,000 Total Washington 54,920,346 ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 2.2% (1.4% OF TOTAL INVESTMENTS) 15,000 Wisconsin Health and Educational Facilities Authority, 2/10 at 100.00 A 14,982,300 Revenue Bonds, Marshfield Clinic, Series 1997, 5.750%, 2/15/27 - NPFG Insured 290 Wisconsin, General Obligation Bonds, Series 2004-3, 5.250%, 5/14 at 100.00 Aa3 310,810 5/01/20 - FGIC Insured 2,600 Wisconsin, General Obligation Bonds, Series 2004-3, 5.250%, 5/14 at 100.00 Aa3 (4) 2,986,048 5/01/20 (Pre-refunded 5/01/14) - FGIC Insured 10,945 Wisconsin, General Obligation Bonds, Series 2004-4, 5.000%, 5/14 at 100.00 AA 11,622,057 5/01/20 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 28,835 Total Wisconsin 29,901,215 ------------------------------------------------------------------------------------------------------------------------------------ $ 2,276,105 Total Long-Term Investments (cost $2,089,134,409) - 155.7% 2,115,920,805 ===============---------------------------------------------------------------------------------------------------------------------
52 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENTS - 1.0% (0.6% OF TOTAL INVESTMENTS) CALIFORNIA - 0.2% (0.1% OF TOTAL INVESTMENTS) $ 2,585 Westminster Redevelopment Agency, Orange County, California, 11/19 at 100.00 A-1 $ 2,585,000 Westminster Commercial Redevelopment Project 1, Tax Allocation Bonds, Variable Rate Demand Obligations, Tender Option Bond Trust 3009, 0.210%, 11/01/45 - AGC Insured (5) ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 0.1% (0.1% OF TOTAL INVESTMENTS) 1,400 Colorado Health Facilities Authority, Colorado, Revenue No Opt. Call A-1+ 1,400,000 Bonds, Catholic Health Initiatives, Variable Rate Demand Obligations, Tender Option Bond Trust 2906Z, 0.230%, 3/01/16 - FSA Insured (5) ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 0.1% (0.1% OF TOTAL INVESTMENTS) 1,882 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales 7/17 at 100.00 A-1 1,882,000 Tax Revenue Bonds, Variable Rate Demand Obligations, Tender Option Bond Trust 2008-1061, 0.360%, 7/01/34 - FSA Insured (5) ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 0.4% (0.2% OF TOTAL INVESTMENTS) 5,000 Massachusetts Development Finance Authority, Revenue Bonds, No Opt. Call A-1 5,000,000 WGBH Educational Foundation, Variable Rate Demand Obligations, Tender Option Bond Trust 1129, 0.190%, 1/01/42 - AGC Insured (5) ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 0.2% (0.1% OF TOTAL INVESTMENTS) 2,500 Sampson County, North Carolina, Certificates of No Opt. Call A-1 2,500,000 Participation, Series 2006, Variable Rate Demand Obligations Series 112, 0.310%, 6/01/34 - FSA Insured (5) ------------------------------------------------------------------------------------------------------------------------------------ $ 13,367 Total Short-Term Investments (cost $13,367,000) 13,367,000 ===============--------------------------------------------------------------------------------------------------------------------- Total Investments (cost $2,102,501,409) - 156.7% 2,129,287,805 ------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (9.9)% (134,833,333) ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 2.9% 39,864,416 ------------------------------------------------------------------------------------------------------------------ Auction Rate Preferred Shares, at Liquidation (675,475,000) Value - (49.7)% (6) ------------------------------------------------------------------------------------------------------------------ Net Assets Applicable to Common Shares - 100% $1,358,843,888 ==================================================================================================================
Primarily all of the Fund's net assets are invested in municipal securities that guarantee the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 - Insurance, for more information. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Comments 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) Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments is 31.7%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. Nuveen Investments 53 NIF | Nuveen Premier Insured Municipal Income Fund, Inc. | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 0.8% (0.5% OF TOTAL INVESTMENTS) $ 2,200 Auburn, Alabama, General Obligation Warrants, Series 2005, 8/15 at 100.00 AA+ $ 2,267,430 5.000%, 8/01/30 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 3.1% (2.1% OF TOTAL INVESTMENTS) 4,370 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/15 at 100.00 AAA 4,518,886 Water System Revenue Bonds, Series 2005, 4.750%, 7/01/25 - NPFG Insured 5,000 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic No Opt. Call AA 4,160,450 Plaza, Series 2005B, 0.000%, 7/01/40 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 9,370 Total Arizona 8,679,336 ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.5% (1.0% OF TOTAL INVESTMENTS) 4,020 Northwest Community College District, Arkansas, General 5/15 at 100.00 A 4,199,694 Obligation Bonds, Series 2005, 5.000%, 5/15/23 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 30.5% (20.2% OF TOTAL INVESTMENTS) 10,000 ABAG Finance Authority for Non-Profit Corporations, 12/09 at 101.00 N/R (4) 10,149,500 California, Insured Certificates of Participation, Children's Hospital Medical Center of Northern California, Series 1999, 6.000%, 12/01/29 (Pre-refunded 12/01/09) - AMBAC Insured 10 California Department of Water Resources, Water System Revenue 12/14 at 100.00 AAA 11,547 Bonds, Central Valley Project, Series 2005AC, 5.000%, 12/01/26 (Pre-refunded 12/01/14) - NPFG Insured 990 California Department of Water Resources, Water System Revenue 12/14 at 100.00 AAA 1,044,212 Bonds, Central Valley Project, Series 2005AC, 5.000%, 12/01/26 - MBIA Insured (UB) 1,250 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 A 1,288,913 Revenue Bonds, Pacific Gas and Electric Company, Series 1996A, 5.350%, 12/01/16 - NPFG Insured (Alternative Minimum Tax) 4,775 Clovis Unified School District, Fresno County, California, No Opt. Call AA (4) 2,405,550 General Obligation Bonds, Series 2001A, 0.000%, 8/01/25 - FGIC Insured (ETM) 1,005 Folsom Cordova Unified School District, Sacramento County, 10/14 at 100.00 AAA 1,036,758 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 No Opt. Call AAA 596,356 Obligation Bonds, Series 2006, 0.000%, 11/01/23 - FSA Insured 45 Kern County Housing Authority, California, GNMA Guaranteed No Opt. Call AAA 46,680 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 36,390 Tax-Exempt Mortgage Obligation Bonds, Series 1994A-III, 7.450%, 6/30/25 (Alternative Minimum Tax) 3,925 La Verne-Grand Terrace Housing Finance Agency, California, No Opt. Call AAA 5,137,315 Single Family Residential Mortgage Revenue Bonds, Series 1984A, 10.250%, 7/01/17 (ETM) 5,000 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call A 5,699,650 County, California, Revenue Refunding Bonds, Redevelopment Project 1, Series 1995, 7.400%, 8/01/25 - NPFG Insured 8,880 Pomona, California, GNMA/FHLMC Collateralized Single Family No Opt. Call AAA 11,656,865 Mortgage Revenue Refunding Bonds, Series 1990B, 7.500%, 8/01/23 (ETM) 8,795 San Bernardino County, California, GNMA Mortgage-Backed No Opt. Call AAA 10,286,720 Securities Program Single Family Home Mortgage Revenue Bonds, Series 1988A, 8.300%, 9/01/14 (Alternative Minimum Tax) (ETM) 8,970 San Bernardino, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 11,674,186 Program Single Family Mortgage Revenue Refunding Bonds, Series 1990A, 7.500%, 5/01/23 (ETM) 4,300 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 A1 4,311,008 Refunding Bonds, San Francisco International Airport, Second Series 2001, Issue 27A, 5.125%, 5/01/19 - NPFG Insured (Alternative Minimum Tax) 29,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call A 6,147,130 County, California, Toll Road Revenue Refunding Bonds, Series 1997A, 0.000%, 1/15/31 - NPFG Insured 2,000 San Jose Redevelopment Agency, California, Tax Allocation 8/14 at 100.00 A 2,052,120 Bonds, Merged Area Redevelopment Project, Series 2004A, 5.250%, 8/01/19 - NPFG Insured 4,475 San Jose Redevelopment Agency, California, Tax Allocation 8/17 at 100.00 A 3,560,265 Bonds, Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30 - NPFG Insured 4,455 San Mateo County Community College District, California, No Opt. Call Aa1 2,585,593 General Obligation Bonds, Series 2006B, 0.000%, 9/01/21 - NPFG Insured
54 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) $ 1,815 University of California, General Revenue Bonds, Series 2005G, 5/13 at 101.00 Aa1 $ 1,821,951 4.750%, 5/15/31 - NPFG Insured 3,600 Ventura County Community College District, California, General 8/15 at 100.00 AA 3,727,008 Obligation Bonds, Series 2005B, 5.000%, 8/01/28 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 104,475 Total California 85,275,717 ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 9.8% (6.5% OF TOTAL INVESTMENTS) 3,000 Colorado Health Facilities Authority, Colorado, Revenue Bonds, 4/18 at 100.00 AAA 3,130,620 Catholic Health Initiatives, Series 2006C-1, Trust 1090, 14.965%, 10/01/41 - FSA Insured (IF) 2,500 Denver City and County, Colorado, Airport System Revenue 11/12 at 100.00 A+ 2,546,025 Refunding Bonds, Series 2002E, 5.500%, 11/15/18 - FGIC Insured (Alternative Minimum Tax) 6,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 102.00 AAA 6,387,660 Bonds, Series 2000A, 5.750%, 9/01/29 (Pre-refunded 9/01/10) - NPFG Insured 20,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call A 4,925,200 Bonds, Series 2000B, 0.000%, 9/01/30 - NPFG Insured 4,405 Garfield, Eagle and Pitkin Counties School District RE-1, 12/14 at 100.00 AAA 4,617,717 Roaring Fork, Colorado, General Obligation Bonds, Series 2005A, 5.000%, 12/15/24 - FSA Insured 2,065 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 2,154,869 Obligation Bonds, Series 2004, 5.000%, 12/15/24 - FSA Insured (UB) 1,390 Teller County School District RE-2, Woodland Park, Colorado, 12/14 at 100.00 AA- 1,469,995 General Obligation Bonds, Series 2004, 5.000%, 12/01/22 - NPFG Insured 1,000 University of Colorado, Enterprise System Revenue Bonds, 6/12 at 100.00 AA- (4) 1,101,260 Series 2002A, 5.000%, 6/01/19 (Pre-refunded 6/01/12) - FGIC Insured 1,000 University of Colorado, Enterprise System Revenue Bonds, 6/15 at 100.00 AA- 1,026,900 Series 2005, 5.000%, 6/01/30 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 41,360 Total Colorado 27,360,246 ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.2% (0.1% OF TOTAL INVESTMENTS) 665 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 617,379 Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals 1606, 11.582%, 10/01/30 - AMBAC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 3.7% (2.4% OF TOTAL INVESTMENTS) 2,285 Florida Municipal Loan Council, Revenue Bonds, Series 2005A, 2/15 at 100.00 A 2,310,066 5.000%, 2/01/23 - NPFG Insured 1,500 JEA, Florida, Water and Sewerage System Revenue Bonds, Series 10/13 at 100.00 AA- 1,559,550 2004A, 5.000%, 10/01/19 - FGIC Insured 4,240 Reedy Creek Improvement District, Florida, Utility Revenue 10/13 at 100.00 A 4,426,433 Bonds, Series 2003-1, 5.250%, 10/01/17 - NPFG Insured 2,000 Tallahassee, Florida, Energy System Revenue Bonds, Series 10/15 at 100.00 AA- 2,034,740 2005, 5.000%, 10/01/28 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,025 Total Florida 10,330,789 ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 3.3% (2.2% OF TOTAL INVESTMENTS) 2,700 Atlanta, Georgia, Airport General Revenue Bonds, Series 2004G, 1/15 at 100.00 AAA 2,799,279 5.000%, 1/01/25 - FSA Insured 6,500 Medical Center Hospital Authority, Georgia, Revenue 2/10 at 102.00 A 6,391,905 Anticipation Certificates, Columbus Regional Healthcare System, Inc. Project, Series 1999, 5.500%, 8/01/25 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 9,200 Total Georgia 9,191,184 ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 3.8% (2.5% OF TOTAL INVESTMENTS) 2,250 Hawaii Department of Budget and Finance, Special Purpose 1/10 at 100.00 Baa1 2,255,693 Revenue 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 A 8,232,998 Refunding Bonds, Series 2000B, 6.500%, 7/01/15 - FGIC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 10,280 Total Hawaii 10,488,691 ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 16.7% (11.0% OF TOTAL INVESTMENTS) 4,000 Bridgeview, Illinois, General Obligation Bonds, Series 2002, 12/12 at 100.00 A 4,086,360 5.000%, 12/01/22 - FGIC Insured 8,200 Chicago Board of Education, Illinois, General Obligation Lease No Opt. Call A1 9,063,050 Certificates, Series 1992A, 6.250%, 1/01/15 - NPFG Insured
Nuveen Investments 55 NIF | Nuveen Premier Insured Municipal Income Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 10,000 Chicago, Illinois, General Obligation Refunding Bonds, Series 1/10 at 101.00 AA- $ 10,084,800 2000D, 5.500%, 1/01/35 - FGIC Insured 1,450 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 A1 1,515,874 O'Hare International Airport, Series 2005A, 5.250%, 1/01/24 - NPFG Insured 21,860 Illinois Development Finance Authority, Local Government No Opt. Call Aa3 16,712,844 Program 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 2/17 at 100.00 A+ 2,513,400 Revenue Bonds, Series 2007A, 5.000%, 2/01/35 - FGIC Insured 5,010 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call A 2,766,923 Refunding Bonds, McCormick Place Expansion Project, Series 1996A, 0.000%, 12/15/21 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 53,020 Total Illinois 46,743,251 ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 4.0% (2.6% OF TOTAL INVESTMENTS) 2,130 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 A+ 2,116,347 Series 2007A, 5.000%, 1/01/42 - NPFG Insured Indiana University, Parking Facility Revenue Bonds, Series 2004: 1,015 5.250%, 11/15/19 - AMBAC Insured 11/14 at 100.00 Aa1 1,120,550 1,060 5.250%, 11/15/20 - AMBAC Insured 11/14 at 100.00 Aa1 1,165,968 1,100 5.250%, 11/15/21 - AMBAC Insured 11/14 at 100.00 Aa1 1,206,623 9,255 Indianapolis Local Public Improvement Bond Bank, Indiana, No Opt. Call AA 4,475,903 Series 1999E, 0.000%, 2/01/25 - AMBAC Insured 1,000 Metropolitan School District Steuben County K-5 Building 7/14 at 102.00 AAA 1,081,240 Corporation, Indiana, First Mortgage Bonds, Series 2003, 5.250%, 1/15/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 15,560 Total Indiana 11,166,631 ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 1.2% (0.8% OF TOTAL INVESTMENTS) 3,345 Ames, Iowa, Hospital Revenue Refunding Bonds, Mary Greeley 6/13 at 100.00 N/R 3,331,386 Medical Center, Series 2003, 5.000%, 6/15/17 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.4% (0.2% OF TOTAL INVESTMENTS) 985 Neosho County Unified School District 413, Kansas, General 9/14 at 100.00 Aa3 1,028,527 Obligation Bonds, Series 2006, 5.000%, 9/01/31 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 2.8% (1.9% OF TOTAL INVESTMENTS) 885 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 A 899,939 Rouge General Hospital, Series 2004, 5.250%, 7/01/24 - NPFG Insured 7,160 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 5/16 at 100.00 AAA 7,037,206 2006A, 4.750%, 5/01/39 - FSA Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ 8,045 Total Louisiana 7,937,145 ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 2.2% (1.4% OF TOTAL INVESTMENTS) 1,200 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 Baa2 1,112,196 Revenue 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 3/12 at 101.00 A2 5,000,400 Bonds, Baltimore-Washington International Airport Passenger Facility, Series 2002B, 5.125%, 3/01/21 - AMBAC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 6,200 Total Maryland 6,112,596 ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 2.3% (1.5% OF TOTAL INVESTMENTS) 4,400 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 4,753,364 Revenue Bonds, Series 2005A, 5.000%, 8/15/23 - FSA Insured (UB) 1,725 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 AAA 1,594,331 Bonds, Series 2007A, 4.500%, 8/01/46 - FSA Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ 6,125 Total Massachusetts 6,347,695 ------------------------------------------------------------------------------------------------------------------------------------
56 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 3.7% (2.4% OF TOTAL INVESTMENTS) $ 6,500 Michigan Higher Education Student Loan Authority, Revenue No Opt. Call AA $ 6,412,835 Bonds, 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 3,843,223 Limited Obligation Multifamily Housing Revenue Bonds, Cranbrook Apartments, Series 2001A, 5.500%, 2/20/43 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 10,310 Total Michigan 10,256,058 ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.8% (1.2% OF TOTAL INVESTMENTS) 4,860 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AA- 4,992,970 Minnesota, Airport Revenue Bonds, Series 2001B, 5.750%, 1/01/15 - FGIC Insured (Alternative Minimum Tax) 130 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/10 at 100.00 AA+ 130,556 Series 1995D, 5.950%, 2/01/18 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,990 Total Minnesota 5,123,526 ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 0.7% (0.5% OF TOTAL INVESTMENTS) 2,000 Missouri Western State College, Auxiliary System Revenue 10/13 at 100.00 A 2,093,620 Bonds, Series 2003, 5.000%, 10/01/21 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 4.4% (2.9% OF TOTAL INVESTMENTS) 2,100 Clark County, Nevada, General Obligation Bank Bonds, Southern 12/12 at 100.00 AA+ 2,115,414 Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32 - NPFG Insured 900 Clark County, Nevada, General Obligation Bank Bonds, Southern 12/12 at 100.00 AA+ (4) 1,006,443 Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32 (Pre-refunded 12/01/12) - NPFG Insured 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 Caa2 8,280 2,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 Caa2 410,020 7,990 Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, 6/12 at 100.00 Baa3 (4) 8,826,154 Reno Transportation Rail Access Corridor Project, Series 2002, 5.250%, 6/01/41 (Pre-refunded 6/01/12) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 13,150 Total Nevada 12,366,311 ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 0.9% (0.6% OF TOTAL INVESTMENTS) New Jersey Economic Development Authority, Revenue Bonds, Motor Vehicle Surcharge, Series 2004A: 1,200 5.000%, 7/01/22 - NPFG Insured 7/14 at 100.00 A 1,228,500 1,200 5.000%, 7/01/23 - NPFG Insured 7/14 at 100.00 A 1,227,480 ------------------------------------------------------------------------------------------------------------------------------------ 2,400 Total New Jersey 2,455,980 ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 6.9% (4.6% OF TOTAL INVESTMENTS) 1,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 A 1,020,750 Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/23 - FGIC Insured 2,185 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 1,842,501 Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured 5,000 Long Island Power Authority, New York, Electric System 6/16 at 100.00 A 5,138,050 General Revenue Bonds, Series 2006A, 5.000%, 12/01/25 - FGIC Insured 10,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA 11,300,600 Transportation Revenue Refunding Bonds, Series 2002F, 5.250%, 11/15/27 (Pre-refunded 11/15/12) - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 18,185 Total New York 19,301,901 ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 2.2% (1.5% OF TOTAL INVESTMENTS) 3,100 North Carolina Medical Care Commission, FHA-Insured Mortgage 10/13 at 100.00 AAA 3,000,397 Revenue Bonds, Betsy Johnson Regional Hospital Project, Series 2003, 5.125%, 10/01/32 - FSA Insured 3,050 Raleigh Durham Airport Authority, North Carolina, Airport 5/15 at 100.00 Aa3 3,162,698 Revenue Bonds, Series 2005A, 5.000%, 5/01/22 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,150 Total North Carolina 6,163,095 ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 1.5% (1.0% OF TOTAL INVESTMENTS) 4,605 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 A2 4,166,558 Series 2006, 4.250%, 12/01/32 - AMBAC Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 57 NIF | Nuveen Premier Insured Municipal Income Fund, Inc. (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 1.5% (1.0% OF TOTAL INVESTMENTS) $ 3,500 Oklahoma Capitol Improvement Authority, State Facilities 7/15 at 100.00 AA $ 3,605,910 Revenue Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured 455 Oklahoma Housing Finance Agency, GNMA Collateralized Single No Opt. Call AAA 492,232 Family Mortgage Revenue Bonds, Series 1987A, 7.997%, 8/01/18 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 3,955 Total Oklahoma 4,098,142 ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 4.2% (2.7% OF TOTAL INVESTMENTS) Oregon Health Sciences University, Revenue Bonds, Series 2002A: 5,000 5.000%, 7/01/26 - NPFG Insured 1/13 at 100.00 A 4,960,600 7,000 5.000%, 7/01/32 - NPFG Insured 1/13 at 100.00 A 6,635,930 ------------------------------------------------------------------------------------------------------------------------------------ 12,000 Total Oregon 11,596,530 ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 3.3% (2.2% OF TOTAL INVESTMENTS) 1,500 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 A 1,543,500 Revenue Bonds, Series 2005A, 5.000%, 12/01/23 - NPFG Insured 4,000 Commonwealth Financing Authority, Pennsylvania, State 6/16 at 100.00 AAA 4,175,280 Appropriation Lease Bonds, Series 2006A, 5.000%, 6/01/26 - FSA Insured (UB) 2,680 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 2,479,241 Bonds, School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 - FSA Insured (UB) 1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 Aa3 1,069,404 Series 2006A, 5.000%, 12/01/26 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 9,230 Total Pennsylvania 9,267,425 ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 2.3% (1.5% OF TOTAL INVESTMENTS) 2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 A 2,521,300 Series 2005RR, 5.000%, 7/01/22 - FGIC Insured 1,000 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, No Opt. Call BBB- 994,800 8/01/21 - CIFG Insured 5,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call AA- 725,100 Revenue Bonds, Series 2007A, 0.000%, 8/01/42 - FGIC Insured 2,000 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call A 2,115,080 Transportation Authority, Series 2003AA, 5.500%, 7/01/17 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,500 Total Puerto Rico 6,356,280 ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 1.9% (1.3% OF TOTAL INVESTMENTS) 3,000 Blount County Public Building Authority, Tennessee, Local 6/15 at 100.00 Aa3 3,116,790 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, 10/14 at 100.00 AAA 2,182,450 Series 2004, 5.000%, 10/01/22 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,055 Total Tennessee 5,299,240 ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 12.9% (8.5% OF TOTAL INVESTMENTS) 12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 A+ 12,500,125 Refunding and Improvement Bonds, Series 2001A, 5.500%, 11/01/35 - FGIC Insured (Alternative Minimum Tax) 4,040 Harris County, Texas, Subordinate Lien Unlimited Tax Toll No Opt. Call AAA 5,990,472 Road Revenue Bonds, Tender Options Bond Trust 3028, 13.931%, 8/15/28 - FSA Insured (IF) 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 A+ 4,782,111 4,800 5.250%, 12/15/21 - FGIC Insured 12/13 at 100.00 A+ 5,007,840 7,600 San Antonio, Texas, Airport System Improvement Revenue Bonds, 7/11 at 101.00 A+ 7,803,072 Series 2001, 5.375%, 7/01/16 - FGIC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 33,505 Total Texas 36,083,620 ------------------------------------------------------------------------------------------------------------------------------------
58 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 16.9% (11.2% OF TOTAL INVESTMENTS) $ 5,000 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AA $ 5,000,800 Consolidated System Revenue Bonds, Series 2001B, 5.600%, 1/01/36 - NPFG Insured (Alternative Minimum Tax) (UB) King County School District 405, Bellevue, Washington, General Obligation Bonds, Series 2002: 9,285 5.000%, 12/01/19 - FGIC Insured 12/12 at 100.00 AA+ 10,041,728 12,785 5.000%, 12/01/20 - FGIC Insured 12/12 at 100.00 AA+ 13,765,865 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 3,027,883 2,990 5.250%, 12/01/19 - FGIC Insured 6/13 at 100.00 Aa1 3,222,114 4,715 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 10/11 at 100.00 Aa2 4,829,009 5.625%, 4/01/17 - FGIC Insured (Alternative Minimum Tax) (UB) 895 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 A 900,039 Terminal 18, Series 1999C, 6.000%, 9/01/29 - NPFG Insured (Alternative Minimum Tax) 1,265 Tacoma, Washington, General Obligation Bonds, Series 2002, 12/12 at 100.00 AA 1,370,487 5.000%, 12/01/18 - FGIC Insured 5,000 Washington, General Obligation Bonds, Series 2001C, 5.250%, 1/11 at 100.00 AAA 5,077,000 1/01/26 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 44,690 Total Washington 47,234,925 ------------------------------------------------------------------------------------------------------------------------------------ $ 465,600 Total Investments (cost $413,684,963) - 151.4% 422,940,908 ===============--------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (9.2)% (25,665,000) ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 4.4% 12,160,706 ------------------------------------------------------------------------------------------------------------------ Auction Rate Preferred Shares, at Liquidation Value - (46.6)% (5) (130,125,000) ------------------------------------------------------------------------------------------------------------------ Net Assets Applicable to Common Shares - 100% $ 279,311,614 ==================================================================================================================
At least 80% of the Fund's net assets are invested in municipal securities that guarantee the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 - Insurance, for more information. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Comments 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) Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments is 30.8%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. Nuveen Investments 59 NPX | Nuveen Insured Premium Income Municipal Fund 2 | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 3.5% (2.3% OF TOTAL INVESTMENTS) $ 3,750 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 6/15 at 100.00 A2 $ 3,758,888 Series 2005A, 5.000%, 6/01/24 - NPFG Insured Jefferson County, Alabama, General Obligation Warrants, Series 2004A: 1,395 5.000%, 4/01/22 - NPFG Insured 4/14 at 100.00 A 929,307 1,040 5.000%, 4/01/23 - NPFG Insured 4/14 at 100.00 A 692,567 11,135 Limestone County Water and Sewer Authority, Alabama, Water 3/17 at 100.00 N/R 9,094,734 Revenue Bonds, Series 2007, 4.500%, 12/01/37 - SYNCORA GTY Insured 2,590 Montgomery Water and Sewerage Board, Alabama, Water and 3/15 at 100.00 AAA 2,705,358 Sewerage Revenue Bonds, Series 2005, 5.000%, 3/01/25 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 19,910 Total Alabama 17,180,854 ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 2.6% (1.7% OF TOTAL INVESTMENTS) 12,365 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/15 at 100.00 AAA 12,719,998 Water System Revenue Bonds, Series 2005, 4.750%, 7/01/27 - NPFG Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 2.6% (1.7% OF TOTAL INVESTMENTS) 5,745 Arkansas Development Finance Authority, State Facility 6/14 at 100.00 AAA 6,105,038 Revenue Bonds, Donaghey Plaza Project, Series 2004, 5.250%, 6/01/25 - FSA Insured University of Arkansas, Fayetteville, Revenue Bonds, Medical Sciences Campus, Series 2004B: 2,000 5.000%, 11/01/27 - NPFG Insured 11/14 at 100.00 Aa3 2,075,180 2,000 5.000%, 11/01/28 - NPFG Insured 11/14 at 100.00 Aa3 2,068,780 2,480 University of Arkansas, Monticello Campus, Revenue Bonds, 12/13 at 100.00 Aa3 2,518,316 Series 2005, 5.000%, 12/01/35 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 12,225 Total Arkansas 12,767,314 ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 23.0% (14.8% OF TOTAL INVESTMENTS) 22,880 Alameda Corridor Transportation Authority, California, Senior No Opt. Call A 5,649,072 Lien Revenue Bonds, Series 1999A, 0.000%, 10/01/32 - NPFG Insured 20 California Department of Water Resources, Water System 12/14 at 100.00 AAA 23,095 Revenue Bonds, Central Valley Project, Series 2005AC, 5.000%, 12/01/24 (Pre-refunded 12/01/14) - NPFG Insured 1,980 California Department of Water Resources, Water System 12/14 at 100.00 AAA 2,097,987 Revenue Bonds, Central Valley Project, Series 2005AC, 5.000%, 12/01/24 - NPFG Insured 1,300 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aa3 1,303,913 Occidental College, Series 2005A, 5.000%, 10/01/33 - NPFG Insured 31,200 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 24.23 A 6,181,968 Toll Road Revenue Refunding Bonds, Series 1999, 0.000%, 1/15/34 - NPFG Insured 1,735 Fullerton Public Financing Authority, California, Tax 9/15 at 100.00 A- 1,637,077 Allocation Revenue Bonds, Series 2005, 5.000%, 9/01/27 - AMBAC Insured 7,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- 6,223,630 Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/35 - FGIC Insured 1,870 Kern Community College District, California, General No Opt. Call AAA 969,726 Obligation Bonds, Series 2006, 0.000%, 11/01/23 - FSA Insured 6,520 Los Angeles Unified School District, California, General 7/15 at 100.00 AA- 6,840,719 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- 4,177,120 Obligation Bonds, Series 2006F, 5.000%, 7/01/24 - FGIC Insured 15,000 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 17,148,150 of Participation, Series 2003, 5.250%, 2/01/30 (Pre-refunded 8/01/13) - FGIC Insured 1,750 Orange County Water District, California, Revenue 8/13 at 100.00 AAA 1,892,433 Certificates of Participation, Series 2003B, 5.000%, 8/15/34 - NPFG Insured (ETM) 8,250 Orange County Water District, California, Revenue 8/13 at 100.00 AAA 8,306,018 Certificates of Participation, Series 2003B, 5.000%, 8/15/34 - NPFG Insured 1,435 Pasadena Area Community College District, Los Angeles County, 6/13 at 100.00 AA+ (4) 1,619,627 California, General Obligation Bonds, Series 2003A, 5.000%, 6/01/22 (Pre-refunded 6/01/13) - FGIC Insured
60 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) $ 12,265 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 N/R (4) $ 12,568,068 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 N/R 748,847 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 AA+ 1,732,520 720 5.000%, 2/01/25 - AMBAC Insured 2/15 at 100.00 AA+ 742,399 San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue Refunding Bonds, Series 1997A: 3,825 0.000%, 1/15/32 - NPFG Insured No Opt. Call A 750,389 26,900 0.000%, 1/15/34 - NPFG Insured No Opt. Call A 4,519,200 2,000 San Jose Redevelopment Agency, California, Tax Allocation 8/14 at 100.00 A 2,052,120 Bonds, Merged Area Redevelopment Project, Series 2004A, 5.250%, 8/01/19 - NPFG Insured 7,845 San Jose Redevelopment Agency, California, Tax Allocation 8/17 at 100.00 A 6,241,404 Bonds, Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30 - NPFG Insured 5,000 Torrance, California, Certificates of Participation, Series No Opt. Call AA 5,096,150 2005B, 5.000%, 6/01/24 - AMBAC Insured 12,500 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 Aa1 12,675,750 Projects, Series 2003A, 5.000%, 5/15/33 - AMBAC Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ 178,405 Total California 111,197,382 ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 9.5% (6.1% OF TOTAL INVESTMENTS) 1,940 Colorado Educational and Cultural Facilities Authority, 6/13 at 100.00 A 1,950,592 Charter School Revenue Bonds, Adams School District 12 - Pinnacle School, Series 2003, 5.250%, 6/01/23 - SYNCORA GTY Insured 3,405 Colorado Educational and Cultural Facilities Authority, 12/13 at 100.00 A 3,425,975 Revenue Bonds, Classical Academy Charter School, Series 2003, 5.250%, 12/01/23 - SYNCORA GTY Insured 16,595 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 N/R (4) 18,615,773 Revenue Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/33 (Pre-refunded 12/01/13) - SYNCORA GTY Insured 5,725 Denver School District 1, Colorado, General Obligation Bonds, 12/13 at 100.00 AAA 6,303,968 Series 2004, 5.000%, 12/01/18 - FSA Insured 12,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call A 2,955,120 Bonds, Series 2000B, 0.000%, 9/01/30 - NPFG Insured 1,325 El Paso County, Colorado, Certificates of Participation, 12/12 at 100.00 AA- 1,346,505 Detention Facility Project, Series 2002B, 5.000%, 12/01/27 - AMBAC Insured Jefferson County School District R1, Colorado, General Obligation Bonds, Series 2004: 2,500 5.000%, 12/15/22 - FSA Insured (UB) 12/14 at 100.00 AAA 2,682,825 5,125 5.000%, 12/15/23 - FSA Insured (UB) 12/14 at 100.00 AAA 5,408,720 2,000 5.000%, 12/15/24 - FSA Insured (UB) 12/14 at 100.00 AAA 2,087,040 1,000 University of Colorado, Enterprise System Revenue Bonds, 6/15 at 100.00 AA- 1,026,900 Series 2005, 5.000%, 6/01/30 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 51,615 Total Colorado 45,803,418 ------------------------------------------------------------------------------------------------------------------------------------ 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 988,735 Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals 1606, 11.582%, 10/01/30 - AMBAC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 0.9% (0.6% OF TOTAL INVESTMENTS) 4,000 Florida State Board of Education, Full Faith and Credit 6/13 at 101.00 AAA 4,242,040 Public Education Capital Outlay Bonds, Series 2003J, 5.000%, 6/01/22 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 3.8% (2.4% OF TOTAL INVESTMENTS) 4,000 Cobb County Development Authority, Georgia, Parking Revenue 7/14 at 100.00 A1 4,117,960 Bonds, Kennesaw State University, Series 2004, 5.000%, 7/15/24 - NPFG Insured 1,475 Columbus, Georgia, Water and Sewerage Revenue Bonds, Series 5/14 at 100.00 AA- 1,545,136 2005, 5.000%, 5/01/23 - NPFG Insured
Nuveen Investments 61 NPX | Nuveen Insured Premium Income Municipal Fund 2 (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA (continued) Municipal Electric Authority of Georgia, Combustion Turbine Revenue Bonds, Series 2003A: $ 1,775 5.000%, 11/01/21 - NPFG Insured 11/13 at 100.00 A1 $ 1,835,545 2,580 5.000%, 11/01/22 - NPFG Insured 11/13 at 100.00 A1 2,658,200 4,500 South Fulton Municipal Regional Water and Sewerage Authority, 1/13 at 100.00 N/R (4) 5,007,104 Georgia, Water and Sewerage Revenue Bonds, Series 2003, 5.000%, 1/01/33 (Pre-refunded 1/01/13) - NPFG Insured 3,000 Valdosta and Lowndes County Hospital Authority, Georgia, 10/12 at 101.00 A+ 3,043,350 Revenue Certificates, South Georgia Medical Center, Series 2002, 5.200%, 10/01/22 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 17,330 Total Georgia 18,207,295 ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 8.0% (5.2% OF TOTAL INVESTMENTS) 2,375 Hawaii County, Hawaii, General Obligation Bonds, Series 7/13 at 100.00 AAA 2,571,674 2003A, 5.000%, 7/15/19 - FSA Insured 20,000 Hawaii Department of Budget and Finance, Special Purpose 7/10 at 101.00 Baa1 20,130,800 Revenue 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 A 6,231,922 9,500 6.625%, 7/01/17 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 A 9,716,600 ------------------------------------------------------------------------------------------------------------------------------------ 37,980 Total Hawaii 38,650,996 ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.1% (0.0% OF TOTAL INVESTMENTS) 255 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100.00 Aaa 259,133 Bonds, Series 1998E, 5.450%, 7/01/18 - AMBAC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 3.2% (2.1% OF TOTAL INVESTMENTS) 1,015 Chicago Park District, Illinois, Limited Tax General 7/11 at 100.00 AA 1,068,633 Obligation Park Bonds, Series 2001C, 5.500%, 1/01/18 - FGIC Insured Illinois Health Facilities Authority, Revenue Bonds, Lutheran General Health System, Series 1993A: 1,890 6.125%, 4/01/12 - FSA Insured (ETM) No Opt. Call AAA 2,016,252 5,000 6.250%, 4/01/18 - FSA Insured (ETM) No Opt. Call AAA 6,029,050 1,950 Illinois Health Facilities Authority, Revenue Refunding No Opt. Call AA- (4) 2,351,934 Bonds, SSM Healthcare System, Series 1992AA, 6.550%, 6/01/14 - MBIA Insured (ETM) 4,000 Illinois Municipal Electric Agency, Power Supply System 2/17 at 100.00 A+ 4,021,440 Revenue Bonds, Series 2007A, 5.000%, 2/01/35 - FGIC Insured 130 Peoria, Moline and Freeport, Illinois, GNMA Collateralized 4/10 at 101.00 AA+ 132,235 Single Family Mortgage Revenue Bonds, Series 1995A, 7.600%, 4/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 13,985 Total Illinois 15,619,544 ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 4.5% (2.9% 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 2,210,313 2,215 5.000%, 8/01/24 - FSA Insured 8/14 at 100.00 AAA 2,319,436 10,000 Indiana Finance Authority, Revenue and Refunding Bonds, 12/19 at 100.00 AA 9,766,400 Trinity Health Credit Group, Series 2009A, 5.250%, 12/01/38 (WI/DD, Settling 11/13/09) 3,730 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 A+ 3,706,091 Series 2007A, 5.000%, 1/01/42 - NPFG Insured 3,500 Indianapolis Local Public Improvement Bond Bank, Indiana, 1/19 at 100.00 AAA 3,752,210 Waterworks Project Series 2009A, 5.500%, 1/01/38 - AGC Insured ------------------------------------------------------------------------------------------------------------------------------------ 21,550 Total Indiana 21,754,450 ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.3% (0.2% OF TOTAL INVESTMENTS) 1,250 Kansas Turnpike Authority, Revenue Bonds, Series 2004A-2, 9/14 at 101.00 AAA 1,322,925 5.000%, 9/01/27 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.0% (0.7% OF TOTAL INVESTMENTS) 6,010 Kentucky Economic Development Finance Authority, Health No Opt. Call A 1,768,983 System Revenue Bonds, Norton Healthcare Inc., Series 2000B, 0.000%, 10/01/28 - NPFG Insured 3,065 Kentucky Turnpike Authority, Economic Development Road 7/15 at 100.00 AA+ 3,216,564 Revenue Bonds, Revitalization Project, Series 2005B, 5.000%, 7/01/25 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 9,075 Total Kentucky 4,985,547 ------------------------------------------------------------------------------------------------------------------------------------
62 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 5.1% (3.3% OF TOTAL INVESTMENTS) $ 3,940 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 A $ 4,006,507 Rouge General Hospital, Series 2004, 5.250%, 7/01/24 - NPFG Insured Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2005A: 1,010 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AA 1,038,684 2,210 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AA 2,269,825 2,500 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AA 2,575,075 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006A: 1,320 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 1,297,362 14,265 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA 13,375,578 ------------------------------------------------------------------------------------------------------------------------------------ 25,245 Total Louisiana 24,563,031 ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 0.8% (0.6% OF TOTAL INVESTMENTS) 1,865 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 Baa3 1,686,725 Revenue Bonds, Series 2006A, 5.250%, 9/01/26 - SYNCORA GTY Insured 2,580 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 2,438,203 Revenue Bonds, Western Maryland Health, Series 2006A, 4.750%, 7/01/36 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,445 Total Maryland 4,124,928 ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 2.8% (1.8% OF TOTAL INVESTMENTS) 3,000 Massachusetts Development Finance Authority, Revenue Bonds, No Opt. Call N/R 3,266,160 WGBH Educational Foundation, Series 2002A, 5.750%, 1/01/42 - AMBAC Insured 290 Massachusetts Port Authority, Special Facilities Revenue 1/11 at 101.00 N/R 195,135 Bonds, Delta Air Lines Inc., Series 2001A, 5.000%, 1/01/27 - AMBAC Insured (Alternative Minimum Tax) 3,335 Massachusetts School Building Authority, Dedicated Sales Tax 8/17 at 100.00 AAA 3,736,567 Revenue Bonds, Tender Option Bond Trust 3091, 13.212%, 8/15/37 - AMBAC Insured (IF) 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) 4,116,726 2,000 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 2,255,740 ------------------------------------------------------------------------------------------------------------------------------------ 12,275 Total Massachusetts 13,570,328 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 0.6% (0.4% OF TOTAL INVESTMENTS) 3,170 Michigan Housing Development Authority, Rental Housing 4/10 at 100.00 AA 3,174,501 Revenue Bonds, Series 1997A, 6.000%, 4/01/16 - AMBAC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 0.2% (0.1% OF TOTAL INVESTMENTS) 795 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/10 at 100.00 AA+ 798,403 Series 1995D, 5.950%, 2/01/18 - NPFG 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 Aa2 1,069,180 Missouri, General Obligation Bonds, Series 2006, 5.250%, 3/01/25 - NPFG Insured 450 Missouri Housing Development Commission, Multifamily Housing 12/09 at 100.00 AAA 450,549 Revenue Bonds, Brookstone Village Apartments, Series 1996A, 6.000%, 12/01/16 - FSA Insured (Alternative Minimum Tax) 750 Missouri Western State College, Auxiliary System Revenue 10/13 at 100.00 A 753,413 Bonds, Series 2003, 5.000%, 10/01/33 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 2,200 Total Missouri 2,273,142 ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 2.9% (1.9% OF TOTAL INVESTMENTS) 1,000 Nebraska Public Power District, General Revenue Bonds, Series 1/15 at 100.00 AAA 1,032,080 2005A, 5.000%, 1/01/25 - FSA Insured 11,520 Nebraska Public Power District, Power Supply System Revenue 1/16 at 100.00 A1 11,662,502 Bonds, Series 2006A, 5.000%, 1/01/41 - FGIC Insured 865 Omaha Public Power District, Nebraska, Separate Electric 2/17 at 100.00 AAA 1,314,791 System Revenue Bonds, Nebraska City 2, Series 2006A, Trust 11673, 19.714%, 2/01/49 - AMBAC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ 13,385 Total Nebraska 14,009,373 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 63 NPX | Nuveen Insured Premium Income Municipal Fund 2 (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 2.0% (1.3% OF TOTAL INVESTMENTS) $ 5,000 Clark County, Nevada, Industrial Development Revenue Bonds, 7/10 at 102.00 Baa3 $ 4,945,150 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, 7/14 at 100.00 Aa3 3,387,584 Series 2004A-2, 5.125%, 7/01/24 - FGIC Insured Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000: 5,055 0.000%, 1/01/27 - AMBAC Insured No Opt. Call Caa2 327,261 5,500 5.625%, 1/01/32 - AMBAC Insured 1/10 at 102.00 Caa2 1,127,555 ------------------------------------------------------------------------------------------------------------------------------------ 18,835 Total Nevada 9,787,550 ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 4.6% (3.0% OF TOTAL INVESTMENTS) Essex County Improvement Authority, New Jersey, Guaranteed Revenue Bonds, Project Consolidation, Series 2004: 1,275 5.125%, 10/01/21 - NPFG Insured 10/14 at 100.00 A1 1,339,426 2,250 5.125%, 10/01/22 - NPFG Insured 10/14 at 100.00 A1 2,353,253 1,560 Mount Olive Township Board of Education, Morris County, New 1/15 at 100.00 Aa2 1,637,688 Jersey, General Obligation Bonds, Series 2004, 5.000%, 1/15/22 - NPFG Insured New Jersey Economic Development Authority, Revenue Bonds, Motor Vehicle Surcharge, Series 2004A: 1,475 5.000%, 7/01/22 - NPFG Insured 7/14 at 100.00 A 1,510,031 1,475 5.000%, 7/01/23 - NPFG Insured 7/14 at 100.00 A 1,508,778 3,075 New Jersey Transit Corporation, Certificates of Participation No Opt. Call AAA 3,494,369 Refunding, Series 2003, 5.500%, 10/01/15 - FSA Insured New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C: 25,000 0.000%, 12/15/35 - AMBAC Insured No Opt. Call AA- 4,927,500 10,000 0.000%, 12/15/36 - AMBAC Insured No Opt. Call AA- 1,847,400 3,315 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 3,490,397 5.000%, 1/01/25 - FSA Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ 49,425 Total New Jersey 22,108,842 ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 0.9% (0.6% 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 AA+ 1,478,222 1,050 5.000%, 6/01/24 - AMBAC Insured 6/14 at 100.00 AA+ 1,089,197 2,000 New Mexico Finance Authority, Public Project Revolving Fund 6/15 at 100.00 Aa3 2,070,200 Revenue Bonds, Series 2005E, 5.000%, 6/15/25 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,465 Total New Mexico 4,637,619 ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 9.4% (6.1% OF TOTAL INVESTMENTS) 1,120 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 A 1,143,240 Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/23 - FGIC Insured 1,000 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 1,050,160 Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 - AMBAC Insured 4,055 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 3,419,379 Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured 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 11,062,076 5,000 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 A 5,138,050 2,700 Long Island Power Authority, New York, Electric System 11/16 at 100.00 A 2,440,557 Revenue Bonds, Series 2006F, 4.250%, 5/01/33 - NPFG Insured 1,755 Nassau County, New York, General Obligation Improvement 3/10 at 100.00 AAA 1,787,590 Bonds, Series 2000E, 6.000%, 3/01/16 (Pre-refunded 3/01/10) - FSA Insured 5,000 New York City, New York, General Obligation Bonds, Fiscal 11/14 at 100.00 AAA 5,249,400 Series 2004E, 5.000%, 11/01/21 - FSA Insured 1,540 New York Convention Center Development Corporation, Hotel 11/15 at 100.00 AAA 1,684,883 Unit Fee Revenue Bonds, Series 2005, Trust 2364, 16.993%, 11/15/44 - AMBAC Insured (IF) 8,495 New York State Housing Finance Agency, Mortgage Revenue 11/09 at 100.00 AAA 8,504,769 Refunding Bonds, Housing Project, Series 1996A, 6.125%, 11/01/20 - FSA Insured 3,770 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 3,937,954 Series 2005G, 5.000%, 1/01/25 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 45,110 Total New York 45,418,058 ------------------------------------------------------------------------------------------------------------------------------------
64 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 1.9% (1.2% OF TOTAL INVESTMENTS) $ 1,250 Appalachian State University, North Carolina, Revenue Bonds, 7/15 at 100.00 A1 $ 1,271,000 Series 2005, 5.000%, 7/15/30 - NPFG 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 2,294,576 2,335 5.000%, 5/01/24 - FGIC Insured 5/14 at 100.00 A 2,401,267 2,900 Raleigh Durham Airport Authority, North Carolina, Airport 5/15 at 100.00 Aa3 3,029,891 Revenue Bonds, Series 2005A, 5.000%, 5/01/21 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,710 Total North Carolina 8,996,734 ------------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 3.9% (2.5% OF TOTAL INVESTMENTS) 10,715 Fargo, North Dakota, Health System Revenue Bonds, MeritCare 6/10 at 101.00 AAA 10,888,690 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 8,033,680 5.850%, 12/01/25 - AMBAC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 18,715 Total North Dakota 18,922,370 ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 1.6% (1.0% OF TOTAL INVESTMENTS) 7,825 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 A2 7,079,982 Series 2006, 4.250%, 12/01/32 - AMBAC Insured 700 Shaker Heights, Ohio, General Obligation Bonds, Series 2003, 12/13 at 100.00 AA+ 744,051 5.250%, 12/01/26 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,525 Total Ohio 7,824,033 ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.3% (0.2% OF TOTAL INVESTMENTS) 1,500 Oklahoma Capitol Improvement Authority, State Facilities 7/15 at 100.00 AA 1,545,390 Revenue Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 3.3% (2.1% OF TOTAL INVESTMENTS) 1,520 Portland Housing Authority, Oregon, Multifamily Housing 7/10 at 100.00 Baa1 1,527,266 Revenue Bonds, Lovejoy Station Apartments, Series 2000, 6.000%, 7/01/33 - NPFG 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 Aa3 (4) 4,597,631 3,665 5.750%, 6/15/18 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aa3 (4) 3,826,407 4,265 5.750%, 6/15/19 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aa3 (4) 4,452,831 1,375 5.750%, 6/15/20 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aa3 (4) 1,435,555 ------------------------------------------------------------------------------------------------------------------------------------ 15,230 Total Oregon 15,839,690 ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 10.6% (6.9% OF TOTAL INVESTMENTS) 12,620 Allegheny County Hospital Development Authority, 11/10 at 102.00 AAA 13,676,294 Pennsylvania, Insured Revenue Bonds, West Penn Allegheny Health System, Series 2000A, 6.500%, 11/15/30 (Pre-refunded 11/15/10) - NPFG Insured 2,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 A 2,058,000 Revenue Bonds, Series 2005A, 5.000%, 12/01/23 - NPFG Insured 4,235 Delaware County Authority, Pennsylvania, Revenue Bonds, 8/16 at 100.00 A1 4,359,340 Villanova University, Series 2006, 5.000%, 8/01/24 - AMBAC Insured 5,315 Pennsylvania Higher Educational Facilities Authority, Revenue 5/15 at 100.00 A+ 5,419,918 Bonds, Drexel University, Series 2005A, 5.000%, 5/01/28 - NPFG Insured 4,585 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 4,241,538 Bonds, School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 - FSA Insured (UB) 1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 Aa3 1,069,404 Series 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 5,393,149 3,000 5.000%, 9/01/25 - FSA Insured 9/14 at 100.00 AAA 3,080,100 2,360 Philadelphia, Pennsylvania, Water and Wastewater Revenue 1/10 at 100.00 AAA 2,433,632 Bonds, 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 3,967,702 Obligation Bonds, Series 2005, 5.000%, 1/15/25 - FSA Insured (UB)
Nuveen Investments 65 NPX | Nuveen Insured Premium Income Municipal Fund 2 (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA (continued) $ 1,455 Solebury Township, Pennsylvania, General Obligation Bonds, 6/15 at 100.00 Aa3 $ 1,523,851 Series 2005, 5.000%, 12/15/25 - AMBAC Insured 3,650 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 4,108,659 Revenue Bonds, Philadelphia School District, Series 2003, 5.000%, 6/01/29 (Pre-refunded 6/01/13) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 49,290 Total Pennsylvania 51,331,587 ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.5% (0.3% OF TOTAL INVESTMENTS) 2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 A 2,521,300 Series 2005RR, 5.000%, 7/01/22 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 0.4% (0.3% OF TOTAL INVESTMENTS) 1,955 Greenville County School District, South Carolina, 12/16 at 100.00 AAA 2,038,967 Installment Purchase Revenue Bonds, Series 2006, 5.000%, 12/01/28 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 18.5% (12.0% OF TOTAL INVESTMENTS) Brazos River Authority, Texas, Revenue Refunding Bonds, Houston Industries Inc., Series 1998C: 10,000 5.125%, 5/01/19 - AMBAC Insured 11/09 at 101.00 BBB+ 10,012,000 9,000 5.125%, 11/01/20 - AMBAC Insured 11/09 at 101.00 BBB+ 8,960,310 Corpus Christi, Texas, Utility System Revenue Bonds, Series 2004: 3,475 5.000%, 7/15/22 - FSA Insured (UB) 7/14 at 100.00 AAA 3,642,043 3,645 5.000%, 7/15/23 - FSA Insured (UB) 7/14 at 100.00 AAA 3,803,630 10,000 Dallas, Texas, Waterworks and Sewer System Revenue Bonds, 10/17 at 100.00 AAA 9,439,300 Series 2007, 4.375%, 10/01/32 - AMBAC Insured (UB) 12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 A+ 12,500,125 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 A1 4,682,350 2007A, 5.250%, 2/15/42 - NPFG Insured 4,485 Lower Colorado River Authority, Texas, Contract Revenue 5/12 at 100.00 AAA 4,603,628 Refunding Bonds, Transmission Services Corporation, Series 2003B, 5.000%, 5/15/21 - FSA Insured 10,000 Lower Colorado River Authority, Texas, Contract Revenue 5/13 at 100.00 A 10,012,600 Refunding 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 4,341,904 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 7,165,219 1,170 5.750%, 12/01/24 (Pre-refunded 12/01/10) - FSA Insured 12/10 at 101.00 AAA 1,246,588 6,330 5.750%, 12/01/24 (Pre-refunded 12/01/10) - FSA Insured 12/10 at 101.00 AAA 6,744,362 2,300 Texas State University System, Financing Revenue Refunding 3/12 at 100.00 AAA 2,463,323 Bonds, Series 2002, 5.000%, 3/15/18 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 88,781 Total Texas 89,617,382 ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 2.4% (1.5% OF TOTAL INVESTMENTS) 8,600 Intermountain Power Agency, Utah, Power Supply Revenue 7/13 at 100.00 AAA 9,305,114 Refunding Bonds, Series 2003A, 5.000%, 7/01/18 - FSA Insured (UB) 2,385 Mountain Regional Water Special Service District, Utah, Water 12/13 at 100.00 A+ 2,199,686 Revenue Bonds, Series 2003, 5.000%, 12/15/33 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,985 Total Utah 11,504,800 ------------------------------------------------------------------------------------------------------------------------------------ VERMONT - 0.3% (0.2% OF TOTAL INVESTMENTS) 1,320 Vermont Educational and Health Buildings Financing Agency, 12/10 at 101.00 Baa1 1,325,042 Revenue Bonds, Fletcher Allen Health Care Inc., Series 2000A, 6.000%, 12/01/23 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 2.7% (1.7% OF TOTAL INVESTMENTS) Greater Richmond Convention Center Authority, Virginia, Hotel Tax Revenue Bonds, Series 2005: 5,880 5.000%, 6/15/20 - NPFG Insured 6/15 at 100.00 A 6,109,614 5,000 5.000%, 6/15/22 - NPFG Insured 6/15 at 100.00 A 5,141,050 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 1,249,372 500 5.250%, 12/15/23 - FSA Insured 6/14 at 100.00 AAA 541,175 ------------------------------------------------------------------------------------------------------------------------------------ 12,530 Total Virginia 13,041,211 ------------------------------------------------------------------------------------------------------------------------------------
66 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 7.5% (4.8% OF TOTAL INVESTMENTS) $ 10,000 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AA $ 10,001,600 Consolidated System Revenue Bonds, Series 2001B, 5.600%, 1/01/36 - NPFG Insured (Alternative Minimum Tax) 1,370 Clark County School District 101, La Center, Washington, 12/12 at 100.00 Aa1 1,442,542 General Obligation Bonds, Series 2002, 5.000%, 12/01/22 - FSA Insured 5,230 Douglas County Public Utility District 1, Washington, 3/10 at 102.00 AA 5,294,068 Revenue Bonds, Wells Hydroelectric, Series 1999A, 6.125%, 9/01/29 - NPFG Insured (Alternative Minimum Tax) 1,545 Tacoma, Washington, General Obligation Bonds, Series 2004, 12/14 at 100.00 AA 1,654,077 5.000%, 12/01/19 - NPFG Insured 3,950 Washington State Healthcare Facilities Authority, Revenue 11/09 at 100.50 A2 3,933,173 Bonds, Swedish Health Services, Series 1998, 5.125%, 11/15/22 - AMBAC Insured 6,200 Washington State, General Obligation Purpose Bonds, Series 7/12 at 100.00 AA+ 6,684,344 2003A, 5.000%, 7/01/20 - FGIC Insured 10,855 Washington, General Obligation Bonds, Series 2000S-5, No Opt. Call AA+ 7,227,368 0.000%, 1/01/20 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 39,150 Total Washington 36,237,172 ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 1.6% (1.1% OF TOTAL INVESTMENTS) 8,000 Pleasants County, West Virginia, Pollution Control Revenue 11/09 at 100.00 BBB- 8,006,720 Bonds, Monongahela Power Company Pleasants Station Project, Series 1995C, 6.150%, 5/01/15 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 6.2% (4.0% OF TOTAL INVESTMENTS) 7,000 La Crosse, Wisconsin, Resource Recovery Revenue Refunding No Opt. Call Aaa 7,490,210 Bonds, Northern States Power Company Project, Series 1996, 6.000%, 11/01/21 - NPFG Insured (Alternative Minimum Tax) 12,750 Milwaukee County, Wisconsin, Airport Revenue Bonds, Series 12/10 at 100.00 A1 12,845,243 2000A, 5.750%, 12/01/25 - FGIC Insured (Alternative Minimum Tax) 5,615 Wisconsin Health and Educational Facilities Authority, 2/10 at 100.00 A 5,617,920 Revenue Bonds, Sinai Samaritan Medical Center Inc., Series 1996, 5.750%, 8/15/16 - NPFG Insured 3,800 Wisconsin State, General Obligation Bonds, Series 2006A, 5/16 at 100.00 AA 3,939,080 4.750%, 5/01/25 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 29,165 Total Wisconsin 29,892,453 ------------------------------------------------------------------------------------------------------------------------------------ $ 856,716 Total Investments (cost $748,775,936) - 154.7% 748,810,257 ===============--------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (12.0)% (57,980,000) ------------------------------------------------------------------------------------------------------------------ Variable Rate Demand Preferred Shares, at Liquidation Value (219,000,000) - (45.2)% (5) ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 2.5% 12,238,481 ------------------------------------------------------------------------------------------------------------------ Net Assets Applicable to Common Shares - 100% $ 484,068,738 ==================================================================================================================
Primarily all of the Fund's net assets are invested in municipal securities that guarantee the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 - Insurance, for more information. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Comments 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) Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 29.2%. N/R Not rated. WI/DD Purchased on a when-issued or delayed delivery basis. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. Nuveen Investments 67 NVG | Nuveen Insured Dividend Advantage Municipal Fund | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ MUNICIPAL BONDS - 148.9% (99.8% OF TOTAL INVESTMENTS) ALABAMA - 2.0% (1.3% OF TOTAL INVESTMENTS) $ 5,310 Athens, Alabama, Water and Sewerage Revenue Warrants, Series 5/12 at 101.00 A+ $ 5,394,641 2002, 5.300%, 5/01/32 - NPFG Insured 3,045 Hoover, Alabama, General Obligation Bonds, Series 2003, 3/12 at 101.00 AA+ 3,271,304 5.000%, 3/01/20 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,355 Total Alabama 8,665,945 ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 3.8% (2.5% OF TOTAL INVESTMENTS) 15,000 Alaska, International Airport System Revenue Bonds, Series 10/12 at 100.00 Aa3 (4) 16,726,050 2002B, 5.250%, 10/01/27 (Pre-refunded 10/01/12) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 2.3% (1.5% OF TOTAL INVESTMENTS) 5,000 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/12 at 100.00 AA- 4,979,900 Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 - FGIC Insured (Alternative Minimum Tax) 6,000 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic No Opt. Call AA 4,989,540 Plaza, Series 2005B, 0.000%, 7/01/37 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 11,000 Total Arizona 9,969,440 ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 15.5% (10.3% OF TOTAL INVESTMENTS) 2,000 Alameda Corridor Transportation Authority, California, No Opt. Call A- 1,022,440 Subordinate Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/20 - AMBAC Insured 6,160 Alhambra Unified School District, Los Angeles County, No Opt. Call AAA 1,788,063 California, General Obligation Bonds, Capital Appreciation Series 2009B, 0.000%, 8/01/30 - AGC Insured California Educational Facilities Authority, Revenue Bonds, Occidental College, Series 2005A: 1,485 5.000%, 10/01/26 - NPFG Insured 10/15 at 100.00 Aa3 1,525,481 1,565 5.000%, 10/01/27 - NPFG Insured 10/15 at 100.00 Aa3 1,601,950 190 California, General Obligation Bonds, Series 2000, 5.250%, 9/10 at 100.00 A (4) 197,560 9/01/17 (Pre-refunded 9/01/10) - NPFG Insured 8,890 California, General Obligation Veterans Welfare Bonds, Series 12/09 at 100.00 AA- 8,896,401 1997BH, 5.400%, 12/01/14 (Alternative Minimum Tax) 3,000 California, General Obligation Veterans Welfare Bonds, Series 12/09 at 100.00 AA- 2,943,660 2001BZ, 5.375%, 12/01/24 - NPFG Insured (Alternative Minimum Tax) 2,425 Fullerton Public Financing Authority, California, Tax 9/15 at 100.00 A- 2,288,133 Allocation 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 738,880 365 5.125%, 6/01/47 6/17 at 100.00 BBB 242,502 18,665 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- 16,594,865 Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/35 - FGIC Insured 1,990 Kern Community College District, California, General No Opt. Call AAA 775,065 Obligation Bonds, Series 2006, 0.000%, 11/01/25 - FSA Insured 7,935 Los Angeles, California, Certificates of Participation, 4/12 at 100.00 AA- 7,947,141 Series 2002, 5.300%, 4/01/32 - AMBAC Insured 2,220 Northern California Power Agency, Revenue Refunding Bonds, 7/10 at 100.00 A2 2,221,709 Hydroelectric Project 1, Series 1998A, 5.200%, 7/01/32 - NPFG Insured Oceanside Unified School District, San Diego County, California, General Obligation Bonds, Series 2008A and 2008B: 5,905 0.000%, 8/01/26 - AGC Insured No Opt. Call AAA 2,251,163 2,220 0.000%, 8/01/28 - AGC Insured No Opt. Call AAA 743,389 2,600 Palomar Pomerado Health, California, General Obligation 8/29 at 100.00 AAA 1,633,580 Bonds, Series 2009A, 0.000%, 8/01/38 - AGC Insured 2,320 Sacramento Municipal Utility District, California, Electric 8/11 at 100.00 AAA 2,394,356 Revenue Bonds, Series 2001P, 5.250%, 8/15/18 - FSA Insured
68 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) San Francisco Unified School District, California, General Obligation Bonds, Series 2007A: $ 1,000 3.000%, 6/15/25 - FSA Insured 6/17 at 100.00 AAA $ 836,940 1,180 3.000%, 6/15/26 - FSA Insured 6/17 at 100.00 AAA 974,326 6,720 San Jose Redevelopment Agency, California, Tax Allocation 8/17 at 100.00 A 5,346,365 Bonds, Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30 - NPFG Insured 4,275 Sequoia Union High School District, San Mateo County, 7/14 at 102.00 Aa2 3,424,361 California, General Obligation Bonds, Series 2006, 3.500%, 7/01/29 - FSA Insured 1,690 Ventura County Community College District, California, 8/15 at 100.00 AA 1,749,623 General Obligation Bonds, Series 2005B, 5.000%, 8/01/28 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 85,800 Total California 68,137,953 ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 5.5% (3.7% OF TOTAL INVESTMENTS) 17,300 Adams County, Colorado, FHA-Insured Mortgage Revenue Bonds, 8/15 at 100.00 A 17,436,324 Platte Valley Medical Center, Series 2005, 5.000%, 8/01/24 - NPFG Insured 750 Arkansas River Power Authority, Colorado, Power Revenue 10/16 at 100.00 BBB 697,125 Bonds, Series 2006, 5.250%, 10/01/32 - SYNCORA GTY Insured 17,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call A 6,107,420 Bonds, Series 2000B, 0.000%, 9/01/25 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 35,050 Total Colorado 24,240,869 ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 1.6% (1.1% OF TOTAL INVESTMENTS) 6,805 District of Columbia, Revenue Bonds, Georgetown University, 4/17 at 100.00 A- 6,107,147 Series 2007A, 4.500%, 4/01/42 - AMBAC Insured 935 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 868,045 Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals 1606, 11.582%, 10/01/30 - AMBAC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ 7,740 Total District of Columbia 6,975,192 ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 11.7% (7.8% OF TOTAL INVESTMENTS) Florida Municipal Loan Council, Revenue Bonds, Series 2003B: 2,305 5.250%, 12/01/17 - NPFG Insured 12/13 at 100.00 A 2,409,878 1,480 5.250%, 12/01/18 - NPFG Insured 12/13 at 100.00 A 1,537,113 11,600 Greater Orlando Aviation Authority, Florida, Airport 10/12 at 100.00 AAA 11,675,980 Facilities Revenue Bonds, Series 2002B, 5.125%, 10/01/21 - FSA Insured (Alternative Minimum Tax) 8,155 Lee County, Florida, Solid Waste System Revenue Refunding 10/11 at 100.00 A3 8,536,736 Bonds, Series 2001, 5.625%, 10/01/13 - NPFG 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 A 7,528,910 5,600 5.750%, 10/01/16 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 A 5,853,176 10,000 5.125%, 10/01/21 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 A 10,089,300 2,000 5.250%, 10/01/22 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 A 2,019,560 1,000 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- 938,750 Revenue, Baptist Health System Obligation Group, Series 2007, 5.000%, 8/15/42 (UB) 1,000 Tallahassee, Florida, Energy System Revenue Bonds, Series 10/15 at 100.00 AA- 1,017,370 2005, 5.000%, 10/01/28 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 50,305 Total Florida 51,606,773 ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 2.2% (1.5% OF TOTAL INVESTMENTS) 6,925 Atlanta and Fulton County Recreation Authority, Georgia, 12/15 at 100.00 A1 7,129,565 Guaranteed Revenue Bonds, Park Improvement, Series 2005A, 5.000%, 12/01/30 - NPFG Insured 1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/14 at 100.00 AAA 1,022,620 2004, 5.000%, 11/01/22 - FSA Insured 1,695 Georgia Housing and Finance Authority, Single Family Mortgage 12/11 at 100.00 AAA 1,704,848 Bonds, Series 2002B-2, 5.500%, 6/01/32 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 9,620 Total Georgia 9,857,033 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 69 NVG | Nuveen Insured Dividend Advantage Municipal Fund (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 1.0% (0.7% 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 - NPFG Insured 7/16 at 100.00 Aa3 $ 3,186,420 1,130 5.000%, 7/15/24 - NPFG Insured 7/16 at 100.00 Aa3 1,195,099 ------------------------------------------------------------------------------------------------------------------------------------ 4,130 Total Idaho 4,381,519 ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 11.1% (7.4% OF TOTAL INVESTMENTS) 10,000 Bolingbrook, Illinois, General Obligation Bonds, Series 2002A, 1/12 at 100.00 A2 (4) 10,946,700 5.375%, 1/01/38 (Pre-refunded 1/01/12) - FGIC Insured 1,305 Chicago, Illinois, General Obligation Bonds, Series 2001A, 1/11 at 101.00 AA 1,346,355 5.500%, 1/01/38 - NPFG Insured Chicago, Illinois, General Obligation Bonds, Series 2001A: 50 5.500%, 1/01/38 (Pre-refunded 1/01/11) - NPFG Insured 1/11 at 101.00 AA- (4) 53,375 3,645 5.500%, 1/01/38 (Pre-refunded 1/01/11) - NPFG Insured 1/11 at 101.00 AA- (4) 3,889,652 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 A1 4,350,173 4,485 5.500%, 1/01/17 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 A1 4,581,428 4,730 5.500%, 1/01/18 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 A1 4,816,606 2,930 5.500%, 1/01/19 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 A1 2,976,382 3,600 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 A1 3,763,548 O'Hare International Airport, Series 2005A, 5.250%, 1/01/24 - NPFG Insured 3,000 Chicago, Illinois, Third Lien General Airport Revenue 1/12 at 100.00 A1 3,080,850 Refunding Bonds, O'Hare International Airport, Series 2002A, 5.750%, 1/01/17 - NPFG Insured (Alternative Minimum Tax) 4,000 Cicero, Cook County, Illinois, General Obligation Corporate 12/12 at 101.00 A 4,008,040 Purpose Bonds, Series 2002, 5.000%, 12/01/21 - NPFG Insured 480 DuPage County Community School District 200, Wheaton, 10/13 at 100.00 Aa3 526,723 Illinois, General Obligation Bonds, Series 2003C, 5.250%, 10/01/22 - FSA Insured DuPage County Community School District 200, Wheaton, Illinois, General Obligation Bonds, Series 2003C: 770 5.250%, 10/01/22 (Pre-refunded 10/01/13) - FSA Insured 10/13 at 100.00 Aa3 (4) 874,312 250 5.250%, 10/01/22 (Pre-refunded 10/01/13) - FSA Insured 10/13 at 100.00 Aa3 (4) 283,868 3,500 Illinois Municipal Electric Agency, Power Supply System 2/17 at 100.00 A+ 3,518,760 Revenue Bonds, Series 2007A, 5.000%, 2/01/35 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 46,995 Total Illinois 49,016,772 ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 15.6% (10.5% OF TOTAL INVESTMENTS) 3,380 Evansville, Indiana, Sewerage Works Revenue Refunding Bonds, 7/13 at 100.00 A3 3,411,333 Series 2003A, 5.000%, 7/01/20 - AMBAC Insured Indiana Bond Bank, Special Program Bonds, Hendricks County Redevelopment District, Series 2002D: 5,075 5.250%, 4/01/26 (Pre-refunded 4/01/12) - AMBAC Insured 4/12 at 100.00 AA (4) 5,591,178 7,000 5.250%, 4/01/30 (Pre-refunded 4/01/12) - AMBAC Insured 4/12 at 100.00 AA (4) 7,711,970 10,000 Indiana Health Facility Financing Authority, Hospital Revenue 7/12 at 100.00 A+ 9,728,000 Bonds, Marion General Hospital, Series 2002, 5.250%, 7/01/32 - AMBAC Insured 3,200 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 A+ 3,179,488 Series 2007A, 5.000%, 1/01/42 - NPFG Insured 4,000 Indianapolis Local Public Improvement Bond Bank, Indiana, 1/19 at 100.00 AAA 4,288,240 Waterworks Project Series 2009A, 5.500%, 1/01/38 - AGC Insured 25,000 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 27,774,000 Waterworks Project, Series 2002A, 5.250%, 7/01/33 (Pre-refunded 7/01/12) - NPFG Insured 6,960 Valparaiso Middle School Building Corporation, Indiana, First 1/13 at 100.00 AA+ 7,299,091 Mortgage Refunding Bonds, Series 2002, 5.000%, 7/15/24 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 64,615 Total Indiana 68,983,300 ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 0.6% (0.4% OF TOTAL INVESTMENTS) 2,415 Kentucky State Property and Buildings Commission, Revenue 2/19 at 100.00 AAA 2,698,666 Bonds, Project 93, Refunding Series 2009, 5.250%, 2/01/20 - AGC Insured ------------------------------------------------------------------------------------------------------------------------------------
70 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 2.9% (2.0% OF TOTAL INVESTMENTS) $ 1,325 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 A $ 1,347,366 Rouge General Hospital, Series 2004, 5.250%, 7/01/24 - NPFG Insured Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006A: 770 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 756,795 8,270 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA 7,754,366 3 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AA 2,504 Residuals 660-3, 16.460%, 5/01/41 - FGIC Insured (IF) 3,085 New Orleans, Louisiana, General Obligation Refunding Bonds, 9/12 at 100.00 A 3,125,198 Series 2002, 5.125%, 9/01/21 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 13,453 Total Louisiana 12,986,229 ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 0.6% (0.4% OF TOTAL INVESTMENTS) 2,775 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 AAA 2,564,794 Bonds, Series 2007A, 4.500%, 8/01/46 - FSA Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 0.3% (0.2% OF TOTAL INVESTMENTS) 1,500 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 1,497,945 Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31 (UB) ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 0.5% (0.3% OF TOTAL INVESTMENTS) 2,000 Northern Municipal Power Agency, Minnesota, Electric System No Opt. Call AAA 2,200,200 Revenue Bonds, Refunding Series 2009A, 5.000%, 1/01/15 - AGC Insured ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 0.4% (0.3% OF TOTAL INVESTMENTS) 1,600 St. Louis County Pattonville School District R3, Missouri, 3/14 at 100.00 AAA 1,785,904 General Obligation Bonds, Series 2004, 5.250%, 3/01/19 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 2.0% (1.3% OF TOTAL INVESTMENTS) 6,360 Lincoln, Nebraska, Electric System Revenue Bonds, Series 2005, 9/15 at 100.00 AA 6,501,574 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 1,080,360 1,000 5.250%, 4/01/21 - FSA Insured 4/13 at 100.00 AAA 1,049,130 ------------------------------------------------------------------------------------------------------------------------------------ 8,360 Total Nebraska 8,631,064 ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 0.5% (0.4% OF TOTAL INVESTMENTS) 2,150 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 2,391,983 System Bonds, Series 2006A, 5.250%, 12/15/20 ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 5.8% (3.9% OF TOTAL INVESTMENTS) 1,120 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 A 1,143,240 Mortgage 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, 2/15 at 100.00 AA- 3,767,641 Mental Health Services Facilities Improvements, Series 2005B, 5.000%, 2/15/23 - AMBAC Insured 3,335 Dormitory Authority of the State of New York, State Personal 2/19 at 100.00 AAA 3,603,628 Income Tax Revenue Bonds, Tender Option Bond Trust 3518, 13.221%, 2/15/39 (IF) 3,130 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 2,639,373 Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured 2,400 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 A 2,169,384 Bonds, Series 2006F, 4.250%, 5/01/33 - NPFG Insured 480 Metropolitan Transportation Authority, New York, 11/15 at 100.00 A 486,480 Transportation Revenue Bonds, Series 2005B, 5.000%, 11/15/30 - AMBAC Insured 10,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA 10,072,600 Transportation Revenue Refunding Bonds, Series 2002A, 5.000%, 11/15/30 - FSA Insured 1,435 New York City Industrial Development Agency, New York, Revenue 3/19 at 100.00 AAA 1,709,659 Bonds, Yankee Stadium Project Pilot, Series 2009A, 7.000%, 3/01/49 - AGC Insured ------------------------------------------------------------------------------------------------------------------------------------ 25,560 Total New York 25,592,005 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 71 NVG | Nuveen Insured Dividend Advantage Municipal Fund (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 0.6% (0.4% OF TOTAL INVESTMENTS) $ 2,125 North Carolina Medical Care Commission, FHA-Insured Mortgage 10/13 at 100.00 AAA $ 2,166,565 Revenue Bonds, Betsy Johnson Regional Hospital Project, Series 2003, 5.375%, 10/01/24 - FSA Insured 540 Oak Island, North Carolina, Enterprise System Revenue Bonds, 6/19 at 100.00 AAA 580,700 Series 2009A, 6.000%, 6/01/34 - AGC Insured ------------------------------------------------------------------------------------------------------------------------------------ 2,665 Total North Carolina 2,747,265 ------------------------------------------------------------------------------------------------------------------------------------ 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: 65 5.125%, 6/01/24 6/17 at 100.00 BBB 57,893 710 5.875%, 6/01/30 6/17 at 100.00 BBB 617,963 685 5.750%, 6/01/34 6/17 at 100.00 BBB 576,051 1,570 5.875%, 6/01/47 6/17 at 100.00 BBB 1,163,244 ------------------------------------------------------------------------------------------------------------------------------------ 3,030 Total Ohio 2,415,151 ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.4% (0.3% OF TOTAL INVESTMENTS) 2,000 Oklahoma Development Finance Authority, Revenue Bonds, Saint 2/17 at 100.00 A 1,916,580 John Health System, Series 2007, 5.000%, 2/15/37 ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 1.9% (1.3% OF TOTAL INVESTMENTS) 3,000 Oregon State Department of Transportation, Highway User Tax 5/19 at 100.00 AAA 3,159,270 Revenue Bonds, Series 2009A, 5.000%, 11/15/33 Oregon, General Obligation Veterans Welfare Bonds, Series 82: 3,580 5.375%, 12/01/31 12/11 at 100.00 AA 3,608,926 1,680 5.500%, 12/01/42 12/11 at 100.00 AA 1,697,035 ------------------------------------------------------------------------------------------------------------------------------------ 8,260 Total Oregon 8,465,231 ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 4.4% (3.0% OF TOTAL INVESTMENTS) 4,500 Allegheny County, Pennsylvania, Airport Revenue Refunding No Opt. Call A 4,741,560 Bonds, Pittsburgh International Airport, Series 1997A, 5.750%, 1/01/13 - NPFG Insured (Alternative Minimum Tax) 4,130 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 3,820,621 Bonds, School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 - FSA Insured (UB) 1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 Aa3 1,069,404 Series 2006A, 5.000%, 12/01/26 - AMBAC Insured 6,000 Pennsylvania Turnpike Commission, Turnpike Subordinate Revenue 6/26 at 100.00 AAA 4,369,680 Bonds, Series 2009C, 0.000%, 6/01/33 - FSA Insured 2,000 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 2,163,640 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 2,167,980 Obligation Bonds, Series 2005, 5.000%, 1/15/19 - FSA Insured (UB) 1,000 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 1,125,660 Revenue Bonds, Philadelphia School District, Series 2003, 5.000%, 6/01/23 (Pre-refunded 6/01/13) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 20,680 Total Pennsylvania 19,458,545 ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.4% (0.3% OF TOTAL INVESTMENTS) 1,225 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, No Opt. Call BBB- 1,218,630 8/01/21 - CIFG Insured 5,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call AA- 725,100 Bonds, Series 2007A, 0.000%, 8/01/42 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,225 Total Puerto Rico 1,943,730 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 1.5% (1.0% OF TOTAL INVESTMENTS) 1,950 Greenville County School District, South Carolina, Installment 12/16 at 100.00 AAA 2,033,753 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 - NPFG Insured 4/13 at 100.00 A 1,108,390 2,300 5.000%, 4/01/21 - NPFG Insured 4/13 at 100.00 A 2,404,029 1,000 Scago Educational Facilities Corporation, South Carolina, 10/15 at 100.00 AAA 1,062,670 Installment Purchase Revenue Bonds, Spartanburg County School District 5, Series 2005, 5.000%, 4/01/21 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,250 Total South Carolina 6,608,842 ------------------------------------------------------------------------------------------------------------------------------------
72 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 10.1% (6.8% 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 $ 1,622,299 1,455 5.000%, 10/01/20 - FSA Insured 10/14 at 100.00 AAA 1,572,680 1,955 5.000%, 10/01/21 - FSA Insured 10/14 at 100.00 AAA 2,105,105 10,000 Memphis-Shelby County Sports Authority, Tennessee, Revenue 11/12 at 100.00 AA- (4) 11,190,400 Bonds, 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 11/12 at 100.00 AA- (4) 11,190,400 Bonds, 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 16,780,142 Facilities Second Program Bonds, Series 2002A, 5.250%, 5/01/32 (Pre-refunded 5/01/12) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 40,100 Total Tennessee 44,461,026 ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 23.2% (15.5% OF TOTAL INVESTMENTS) 3,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 A+ 3,711,540 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 A3 (4) 10,789,900 Obligation Bonds, Series 2002, 5.375%, 8/15/32 (Pre-refunded 8/15/11) - NPFG Insured 1,210 Galveston, Texas, General Obligation Bonds, Series 2001, 5/11 at 100.00 A 1,264,256 5.250%, 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 - NPFG Insured 11/13 at 100.00 AA 2,348,013 2,355 5.000%, 11/15/17 - NPFG Insured 11/13 at 100.00 AA 2,445,432 4,080 Harris County, Texas, General Obligation Toll Road Revenue No Opt. Call AAA 5,758,063 Bonds, Series 2009, Trust 3418, 13.636%, 8/15/32 - FSA Insured (IF) 13,000 Houston Area Water Corporation, Texas, Contract Revenue Bonds, 3/12 at 100.00 N/R (4) 14,167,010 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 5/14 at 100.00 AA 1,051,550 Bonds, 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 4,744,088 Bonds, Series 2002, 5.500%, 5/15/17 - FSA Insured 5,475 Texas Department of Housing and Community Affairs, Residential 7/11 at 100.00 AAA 5,341,082 Mortgage Revenue Bonds, Series 2001A, 5.350%, 7/01/33 (Alternative Minimum Tax) 8,035 Texas Department of Housing and Community Affairs, Single 3/12 at 100.00 AAA 8,086,745 Family Mortgage Bonds, Series 2002B, 5.550%, 9/01/33 - NPFG Insured (Alternative Minimum Tax) Texas Public Finance Authority, Revenue Bonds, Texas Southern University Financing System, Series 2002: 3,520 5.125%, 11/01/20 - NPFG Insured 5/12 at 100.00 Baa1 3,153,955 3,520 5.125%, 11/01/21 - NPFG Insured 5/12 at 100.00 Baa1 3,115,552 Texas Student Housing Authority, Revenue Bonds, Austin Project, Senior Series 2001A: 9,400 5.375%, 1/01/23 - NPFG Insured 1/12 at 102.00 Baa1 6,352,896 11,665 5.500%, 1/01/33 - NPFG Insured 1/12 at 102.00 Baa1 6,961,322 5,000 Texas Water Development Board, Senior Lien State Revolving 1/10 at 100.00 AAA 5,044,550 Fund Revenue Bonds, Series 1999B, 5.250%, 7/15/17 9,145 Texas, General Obligation Bonds, Veterans Housing Assistance 6/12 at 100.00 AA+ 9,190,816 Program Fund II, Series 2002A-1, 5.250%, 12/01/22 (Alternative Minimum Tax) (UB) 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 3,291,690 5,000 5.250%, 2/15/25 (Pre-refunded 2/15/12) - FSA Insured 2/12 at 100.00 AAA 5,486,150 ------------------------------------------------------------------------------------------------------------------------------------ 105,490 Total Texas 102,304,610 ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 1.2% (0.8% OF TOTAL INVESTMENTS) 4,865 Utah Transit Authority, Sales Tax Revenue Bonds, Series 2008, 6/18 at 100.00 AAA 5,344,300 Trust 1193, 13.270%, 6/15/36 - FSA Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 15.7% (10.5% OF TOTAL INVESTMENTS) 5,305 Energy Northwest, Washington Public Power, Nine Canyon Wind 7/16 at 100.00 A- 4,991,368 Project Revenue Bonds, Series 2006A, 4.500%, 7/01/30 - AMBAC Insured
Nuveen Investments 73 NVG | Nuveen Insured Dividend Advantage Municipal Fund (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON (continued) $ 6,600 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/12 at 100.00 AAA $ 7,164,564 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 8,378,030 Nuclear Project 1, Series 2002A, 5.500%, 7/01/15 - NPFG Insured 2,500 Port of Seattle, Washington, Revenue Refunding Bonds, Series 11/12 at 100.00 Aa2 2,665,250 2002D, 5.750%, 11/01/15 - FGIC Insured (Alternative Minimum Tax) 2,200 Snohomish County School District 2, Everett, Washington, 12/13 at 100.00 AAA 2,459,160 General Obligation Bonds, Series 2003B, 5.000%, 6/01/17 - FSA Insured 3,255 Thurston and Pierce Counties School District, Washington, 6/13 at 100.00 Aa1 3,601,299 General Obligation Bonds, Yelm Community Schools, Series 2003, 5.250%, 12/01/16 - FSA Insured 10,000 University of Washington, General Revenue Bonds, Refunding 6/17 at 100.00 AA+ 10,234,000 Series 2007, 5.000%, 6/01/37 - AMBAC Insured (UB) 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 A2 2,186,400 4,325 5.125%, 6/01/22 - AMBAC Insured 6/12 at 100.00 A2 4,369,072 15,000 Washington State Healthcare Facilities Authority, Revenue 8/13 at 102.00 N/R 13,700,400 Bonds, Harrison Memorial Hospital, Series 1998, 5.000%, 8/15/28 - AMBAC Insured 3,335 Washington State, General Obligation Bonds, Series 2009, Trust 7/16 at 100.00 AAA 3,727,930 1212, 13.208%, 7/01/31 - FSA Insured (IF) 5,170 Whitman County School District 267, Pullman, Washington, 6/12 at 100.00 Aa1 5,539,964 General Obligation Bonds, Series 2002, 5.000%, 12/01/20 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 67,365 Total Washington 69,017,437 ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 3.0% (2.0% OF TOTAL INVESTMENTS) 11,950 Wisconsin, Transportation Revenue Refunding Bonds, Series 7/12 at 100.00 AA+ (4) 13,236,776 2002-1, 5.125%, 7/01/18 (Pre-refunded 7/01/12) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 677,303 Total Municipal Bonds (cost $638,144,425) 656,829,129 ===============---------------------------------------------------------------------------------------------------------------------
74 Nuveen Investments
SHARES DESCRIPTION (1) VALUE ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT COMPANIES - 0.3% (0.2% OF TOTAL INVESTMENTS) 8,134 BlackRock MuniHoldings Fund Inc. $ 119,244 13,600 BlackRock MuniEnhanced Fund Inc. 133,280 7,920 Dreyfus Strategic Municipal Fund 59,400 3,500 DWS Municipal Income Trust 39,725 9,668 Morgan Stanley Quality Municipal Income Trust 114,082 26,280 PIMCO Municipal Income Fund II 266,479 9,500 Van Kampen Advantage Municipal Income Fund II 107,160 28,980 Van Kampen Investment Grade Municipal Trust 392,679 ===============--------------------------------------------------------------------------------------------------------------------- Total Investment Companies (cost $1,353,712) 1,232,049 ------------------------------------------------------------------------------------------------------------------ Total Investments (cost $639,498,137) - 149.2% 658,061,178 ------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (6.4)% (28,413,334) ------------------------------------------------------------------------------------------------------------------ MuniFund Term Preferred Shares, at Liquidation Value - (24.5)% (5) (108,000,000) ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 2.5% 11,509,645 ------------------------------------------------------------------------------------------------------------------ Auction Rate Preferred Shares, at Liquidation Value - (20.8)% (5) (91,950,000) ------------------------------------------------------------------------------------------------------------------ Net Assets Applicable to Common Shares - 100% $ 441,207,489 ==================================================================================================================
At least 80% of the Fund's net assets are invested in municipal securities that guarantee the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 - Insurance, for more information. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Comments 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) MuniFund Term Preferred Shares and Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments are 16.4% and 14.0%, respectively. N/R Not rated. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. Nuveen Investments 75 NEA | Nuveen Insured Tax-Free Advantage Municipal Fund | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 7.3% (4.9% OF TOTAL INVESTMENTS) $ 1,000 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 AA $ 1,004,100 Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/36 (UB) 5,655 Colbert County-Northwest Health Care Authority, Alabama, 6/13 at 101.00 Baa3 5,326,784 Revenue Bonds, Helen Keller Hospital, Series 2003, 5.750%, 6/01/27 3,100 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 5/12 at 102.00 A (4) 3,493,142 Series 1998A, 5.400%, 6/01/22 (Pre-refunded 5/14/12) - NPFG Insured 6,280 Jefferson County, Alabama, Sewer Revenue Capital Improvement 8/12 at 100.00 AAA 6,893,996 Warrants, Series 2002D, 5.000%, 2/01/32 (Pre-refunded 8/01/12) - FGIC Insured 1,750 Montgomery, Alabama, General Obligation Warrants, Series 5/12 at 101.00 AA 1,879,658 2003, 5.000%, 5/01/21 - AMBAC Insured 4,500 Sheffield, Alabama, Electric Revenue Bonds, Series 2003, 7/13 at 100.00 A2 4,715,190 5.500%, 7/01/29 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 22,285 Total Alabama 23,312,870 ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 4.5% (3.1% OF TOTAL INVESTMENTS) 10,000 Maricopa County Pollution Control Corporation, Arizona, 11/12 at 100.00 Baa2 9,130,900 Revenue 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 No Opt. Call AA 5,442,757 Plaza, Series 2005B, 0.000%, 7/01/37 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 16,545 Total Arizona 14,573,657 ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 20.6% (13.9% OF TOTAL INVESTMENTS) 26,300 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 A- 24,518,701 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, 4/12 at 100.00 Baa1 246,905 5.250%, 4/01/30 - SYNCORA GTY Insured 5 California State, General Obligation Bonds, Series 2004, 4/14 at 100.00 A 4,778 5.000%, 4/01/31 - AMBAC Insured 7,495 California State, General Obligation Bonds, Series 2004, 4/14 at 100.00 AAA 8,538,529 5.000%, 4/01/31 (Pre-refunded 4/01/14) - AMBAC Insured 2,910 Cathedral City Public Financing Authority, California, Tax 8/12 at 102.00 A 2,785,568 Allocation Bonds, Housing Set-Aside, Series 2002D, 5.000%, 8/01/26 - NPFG Insured 250 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 166,098 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- 7,112,720 Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/35 - FGIC Insured 2,500 Irvine Public Facilities and Infrastructure Authority, 9/13 at 100.00 N/R 2,358,975 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+ 4,014,600 Bonds, Series 2003, 5.000%, 8/01/28 - FGIC Insured Plumas County, California, Certificates of Participation, Capital Improvement Program, Series 2003A: 1,130 5.250%, 6/01/19 - AMBAC Insured 6/13 at 101.00 A- 1,154,442 1,255 5.250%, 6/01/21 - AMBAC Insured 6/13 at 101.00 A- 1,270,273 1,210 Redding Joint Powers Financing Authority, California, Lease 3/13 at 100.00 A 1,215,735 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 A+ 3,763,838 Revenue Bonds, Series 2003R, 5.000%, 8/15/28 - NPFG Insured 1,500 San Diego Community College District, California, General 5/13 at 100.00 AAA 1,533,810 Obligation Bonds, Series 2003A, 5.000%, 5/01/28 - FSA Insured 1,055 Turlock Irrigation District, California, Certificates of 1/13 at 100.00 A 1,057,374 Participation, Series 2003A, 5.000%, 1/01/28 - NPFG Insured 6,300 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AA 6,388,578 Projects, Series 2003A, 5.000%, 5/15/33 - AMBAC Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ 67,910 Total California 66,130,924 ------------------------------------------------------------------------------------------------------------------------------------
76 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 4.9% (3.3% 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 $ 4,489,673 3,750 5.500%, 12/01/28 - FSA Insured 12/13 at 100.00 AAA 3,864,413 1,450 Colorado Educational and Cultural Facilities Authority, 8/14 at 100.00 A 1,455,365 Charter School Revenue Bonds, Peak-to-Peak Charter School, Series 2004, 5.250%, 8/15/24 - SYNCORA GTY Insured 4,500 Colorado Health Facilities Authority, Colorado, Revenue 4/18 at 100.00 AAA 4,695,930 Bonds, Catholic Health Initiatives, Series 2006C-1, Trust 1090, 14.965%, 10/01/41 - FSA Insured (IF) 3,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call A 738,780 Bonds, Series 2000B, 0.000%, 9/01/30 - NPFG Insured 2,900 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call A 524,755 Series 2004A, 0.000%, 9/01/34 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 19,900 Total Colorado 15,768,916 ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.6% (0.4% OF TOTAL INVESTMENTS) 7,000 Metropolitan Washington DC Airports Authority, Virginia, No Opt. Call AAA 1,311,170 Dulles Toll Road Revenue Bonds, Series 2009B, 0.000%, 10/01/36 - AGC Insured 665 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 617,379 Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals 1606, 11.582%, 10/01/30 - AMBAC Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ 7,665 Total District of Columbia 1,928,549 ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 23.6% (15.9% OF TOTAL INVESTMENTS) 1,000 Bay County, Florida, Water System Revenue Bonds, Series 2005, 9/15 at 100.00 A3 1,021,750 5.000%, 9/01/25 - AMBAC Insured Clay County, Florida, Utility System Revenue Bonds, Series 2007: 1,500 5.000%, 11/01/27 - SYNCORA GTY Insured (UB) 11/17 at 100.00 AAA 1,566,345 3,000 5.000%, 11/01/32 - SYNCORA GTY Insured (UB) 11/17 at 100.00 AAA 3,064,080 400 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AA 415,336 Series 2005, 5.000%, 10/01/23 - NPFG Insured 1,000 Escambia County, Florida, Sales Tax Revenue Refunding Bonds, 10/12 at 101.00 A+ 1,108,530 Series 2002, 5.250%, 10/01/17 - AMBAC Insured 1,525 Fernandina Beach, Florida, Utility Acquisition and 9/13 at 100.00 A 1,555,805 Improvement Revenue Bonds, Series 2003, 5.000%, 9/01/23 - FGIC Insured 500 Flagler County, Florida, Capital Improvement Revenue Bonds, 10/15 at 100.00 A 502,010 Series 2005, 5.000%, 10/01/30 - NPFG Insured 260 Florida Housing Finance Agency, GNMA Collateralized Home No Opt. Call AAA 282,230 Ownership Revenue Refunding Bonds, Series 1987G-1, 8.595%, 11/01/17 2,500 Florida State Board of Education, Public Education Capital 6/18 at 101.00 AAA 2,877,600 Outlay Bonds, Series 2008, Trust 2929, 17.020%, 6/01/38 - AGC Insured (IF) 2,240 FSU Financial Assistance Inc., Florida, General Revenue No Opt. Call A1 2,448,253 Bonds, Educational and Athletic Facilities Improvements, Series 2004, 5.000%, 10/01/14 - AMBAC Insured 2,000 Greater Orlando Aviation Authority, Florida, Airport 10/12 at 100.00 AAA 2,020,680 Facilities Revenue Bonds, Series 2002A, 5.125%, 10/01/32 - FSA Insured 105 Greater Orlando Aviation Authority, Florida, Airport 10/13 at 100.00 AAA 110,916 Facilities Revenue Refunding Bonds, Series 2003A, 5.000%, 10/01/17 - FSA Insured 350 Halifax Hospital Medical Center, Florida, Revenue Bonds, 6/18 at 100.00 AAA 350,931 Series 2006, 5.500%, 6/01/38 - FSA Insured 1,300 Highlands County Health Facilities Authority, Florida, 11/15 at 100.00 A1 1,215,669 Hospital Revenue Bonds, Adventist Health System, Series 2005D, 5.000%, 11/15/35 - NPFG Insured 180 Highlands County Health Facilities Authority, Florida, 11/15 at 100.00 A1 (4) 205,879 Hospital Revenue Bonds, Adventist Health System, Series 2005D, 5.000%, 11/15/35 (Pre-refunded 11/15/15) - NPFG Insured 3,500 Highlands County Health Facilities Authority, Florida, 11/13 at 100.00 N/R (4) 4,013,030 Hospital Revenue Bonds, Adventist Health System/Sunbelt Obligated Group, Series 2003D, 5.875%, 11/15/29 (Pre-refunded 11/15/13) 1,500 Hillsborough County School Board, Florida, Certificates of 7/13 at 100.00 AA- 1,512,390 Participation, Series 2003, 5.000%, 7/01/29 - NPFG Insured 2,270 Jacksonville, Florida, Local Government Sales Tax Revenue 10/12 at 100.00 AA+ 2,440,432 Refunding and Improvement Bonds, Series 2002, 5.375%, 10/01/18 - FGIC Insured
Nuveen Investments 77 NEA | Nuveen Insured Tax-Free Advantage Municipal Fund (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA (continued) $ 2,265 Lakeland, Florida, Utility Tax Revenue Bonds, Series 2003B, 10/12 at 100.00 N/R $ 2,282,010 5.000%, 10/01/20 - AMBAC Insured 1,730 Lee County, Florida, Transportation Facilities Revenue Bonds, 10/14 at 100.00 A- 1,752,490 Series 2004B, 5.000%, 10/01/22 - AMBAC Insured 500 Lee Memorial Health System, Florida, Hospital Revenue Bonds, 4/17 at 100.00 A 471,675 Series 2007A, 5.000%, 4/01/32 - NPFG Insured 3,000 Marco Island, Florida, Water Utility System Revenue Bonds, 10/13 at 100.00 A 3,030,690 Series 2003, 5.000%, 10/01/27 - NPFG Insured 2,000 Miami-Dade County, Florida, Water and Sewer System Revenue 4/10 at 101.00 A+ 2,018,120 Bonds, Series 1999A, 5.000%, 10/01/29 - FGIC Insured 500 Miami-Dade County, Florida, Water and Sewer System Revenue No Opt. Call AAA 553,765 Bonds, Series 2008B, 5.250%, 10/01/22 - FSA Insured 500 North Port, Florida, Utility System Revenue Bonds, Series 10/10 at 101.00 Aa3 (4) 526,235 2000, 5.000%, 10/01/25 (Pre-refunded 10/01/10) - FSA Insured 2,000 Orange County, Florida, Sales Tax Revenue Bonds, Series 1/13 at 100.00 AA 2,129,880 2002A, 5.125%, 1/01/17 - FGIC Insured 1,500 Orange County, Florida, Sales Tax Revenue Bonds, Series 1/13 at 100.00 AA 1,511,010 2002B, 5.125%, 1/01/32 - FGIC Insured 3,370 Osceola County School Board, Florida, Certificates of 6/12 at 101.00 A2 (4) 3,724,591 Participation, Series 2002A, 5.125%, 6/01/20 (Pre-refunded 6/01/12) - AMBAC Insured 3,335 Palm Bay, Florida, Local Optional Gas Tax Revenue Bonds, 10/14 at 100.00 AA- 3,583,291 Series 2004, 5.250%, 10/01/20 - NPFG Insured 1,095 Palm Bay, Florida, Utility System Revenue Bonds, Series 2004, 10/14 at 100.00 A 1,176,523 5.250%, 10/01/20 - NPFG Insured 2,670 Palm Beach County School Board, Florida, Certificates of 8/12 at 100.00 AAA 2,693,015 Participation, Series 2002D, 5.000%, 8/01/28 - FSA Insured 1,950 Palm Beach County School Board, Florida, Certificates of 8/12 at 100.00 AAA 2,167,796 Participation, Series 2002D, 5.250%, 8/01/20 (Pre-refunded 8/01/12) - FSA Insured Pinellas County Health Facilities Authority, Florida, Revenue Bonds, Baycare Health System, Series 2003: 2,800 5.750%, 11/15/27 (Pre-refunded 5/15/13) 5/13 at 100.00 Aa3 (4) 3,206,868 3,000 5.500%, 11/15/27 (Pre-refunded 5/15/13) 5/13 at 100.00 Aa3 (4) 3,410,160 1,000 Port Saint Lucie, Florida, Special Assessment Revenue Bonds, 7/17 at 100.00 A 889,390 Southwest Annexation District 1B, Series 2007, 5.000%, 7/01/33 - NPFG Insured 2,115 Port St. Lucie, Florida, Sales Tax Revenue Bonds, Series 9/13 at 100.00 A+ 2,130,989 2003, 5.000%, 9/01/23 - NPFG Insured 1,500 Port St. Lucie, Florida, Stormwater Utility System Revenue 5/12 at 100.00 A 1,507,695 Refunding Bonds, Series 2002, 5.000%, 5/01/23 - NPFG Insured 225 Port St. Lucie, Florida, Utility System Revenue Bonds, 9/18 at 100.00 AAA 232,322 Refunding Series 2009, 5.250%, 9/01/35 - AGC Insured 1,500 South Miami Health Facilities Authority, Florida, Hospital 2/13 at 100.00 Aaa 1,678,620 Revenue Bonds, Baptist Health Systems of South Florida, Series 2003, 5.200%, 11/15/28 (Pre-refunded 2/01/13) 1,730 St. John's County, Florida, Sales Tax Revenue Bonds, Series 10/14 at 100.00 A+ 1,783,128 2004A, 5.000%, 10/01/24 - AMBAC Insured 4,000 St. Lucie County School Board, Florida, Certificates of 7/14 at 100.00 AAA 4,095,000 Participation, Master Lease Program, Series 2004A, 5.000%, 7/01/24 - FSA Insured 1,200 Tamarac, Florida, Utility System Revenue Bonds, Series 2009, 10/19 at 100.00 AAA 1,188,912 5.000%, 10/01/39 1,250 Volusia County Educational Facilities Authority, Florida, 10/13 at 100.00 BBB- 1,186,038 Revenue Refunding Bonds, Embry-Riddle Aeronautical University, Series 2003, 5.200%, 10/15/33 - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ 71,865 Total Florida 75,642,079 ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 2.0% (1.4% OF TOTAL INVESTMENTS) 3,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/19 at 100.00 AAA 3,038,220 2009B, 5.375%, 11/01/39 - FSA Insured 1,410 DeKalb County, Georgia, Water and Sewer Revenue Bonds, Series 10/16 at 100.00 AAA 1,463,777 2006A, 5.000%, 10/01/35 - FSA Insured 1,825 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales 1/13 at 100.00 AA+ (4) 2,028,853 Tax Revenue Bonds, Second Indenture Series 2002, 5.000%, 7/01/32 (Pre-refunded 1/01/13) - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,235 Total Georgia 6,530,850 ------------------------------------------------------------------------------------------------------------------------------------
78 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 2.8% (1.9% OF TOTAL INVESTMENTS) Cook County School District 145, Arbor Park, Illinois, General Obligation Bonds, Series 2004: $ 1,635 5.125%, 12/01/20 - FSA Insured 12/14 at 100.00 Aa3 $ 1,729,323 1,465 5.125%, 12/01/23 - FSA Insured 12/14 at 100.00 Aa3 1,529,973 Cook County School District 145, Arbor Park, Illinois, General Obligation Bonds, Series 2004: 1,650 5.125%, 12/01/20 - FSA Insured (ETM) 12/14 at 100.00 Aa3 (4) 1,782,017 1,475 5.125%, 12/01/23 - FSA Insured (ETM) 12/14 at 100.00 Aa3 (4) 1,572,085 2,500 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/13 at 100.00 A- 2,463,875 Forest Hospital, Series 2003, 5.250%, 7/01/23 ------------------------------------------------------------------------------------------------------------------------------------ 8,725 Total Illinois 9,077,273 ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 7.3% (4.9% OF TOTAL INVESTMENTS) 2,500 Evansville, Indiana, Sewerage Works Revenue Refunding Bonds, 7/13 at 100.00 A3 2,518,150 Series 2003A, 5.000%, 7/01/23 - AMBAC Insured 2,190 Indiana Bond Bank, Advance Purchase Funding Bonds, Common 8/13 at 100.00 A 2,209,885 School Fund, Series 2003B, 5.000%, 8/01/19 - NPFG Insured 1,860 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 A+ 1,848,077 Series 2007A, 5.000%, 1/01/42 - NPFG Insured 1,000 Indiana University, Student Fee Revenue Bonds, Series 2003O, 8/13 at 100.00 Aa1 1,055,120 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) - NPFG Insured 7/13 at 100.00 AA (4) 12,434,417 3,000 5.000%, 7/15/20 (Pre-refunded 7/15/13) - NPFG Insured 7/13 at 100.00 AA (4) 3,385,050 ------------------------------------------------------------------------------------------------------------------------------------ 21,570 Total Indiana 23,450,699 ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 1.6% (1.1% OF TOTAL INVESTMENTS) 5,000 Kansas Development Finance Authority, Board of Regents, 4/13 at 102.00 AA 5,236,450 Revenue Bonds, Scientific Research and Development Facilities Projects, Series 2003C, 5.000%, 10/01/22 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 0.4% (0.2% OF TOTAL INVESTMENTS) 985 Kentucky State Property and Buildings Commission, Revenue 8/13 at 100.00 Aa3 (4) 1,112,558 Refunding Bonds, Project 77, Series 2003, 5.000%, 8/01/23 (Pre-refunded 8/01/13) - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 1.8% (1.2% OF TOTAL INVESTMENTS) 5,785 New Orleans, Louisiana, General Obligation Refunding Bonds, 12/12 at 100.00 Baa3 5,810,801 Series 2002, 5.300%, 12/01/27 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 0.4% (0.2% OF TOTAL INVESTMENTS) 1,125 Massachusetts Development Finance Authority, Revenue Bonds, 9/13 at 100.00 A1 1,157,839 Middlesex School, Series 2003, 5.125%, 9/01/23 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 9.9% (6.7% OF TOTAL INVESTMENTS) 6,130 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/13 at 100.00 A+ (4) 6,866,274 Bonds, Series 2003A, 5.000%, 7/01/23 (Pre-refunded 7/01/13) - NPFG Insured 4,465 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/13 at 100.00 A+ 4,513,892 Refunding Bonds, Series 2003C, 5.000%, 7/01/22 - NPFG Insured 1,000 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 998,630 Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31 (UB) 10,800 Michigan Strategic Fund, Limited Obligation Resource Recovery 12/12 at 100.00 Baa1 10,614,780 Revenue Refunding Bonds, Detroit Edison Company, Series 2002D, 5.250%, 12/15/32 - SYNCORA GTY Insured 2,250 Romulus Community Schools, Wayne County, Michigan, General 5/11 at 100.00 AA- 2,310,818 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 A 6,408,090 Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.000%, 12/01/30 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 31,145 Total Michigan 31,712,484 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 79 NEA | Nuveen Insured Tax-Free Advantage Municipal Fund (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 1.0% (0.7% OF TOTAL INVESTMENTS) $ 240 Clay County Public School District 53, Liberty, Missouri, 3/14 at 100.00 AAA $ 257,568 General Obligation Bonds, Series 2004, 5.250%, 3/01/24 - FSA Insured 215 Clay County Public School District 53, Liberty, Missouri, 3/14 at 100.00 AAA 231,746 General 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 1,269,618 1,260 5.250%, 3/01/24 (Pre-refunded 3/01/14) - FSA Insured 3/14 at 100.00 AAA 1,441,188 ------------------------------------------------------------------------------------------------------------------------------------ 2,825 Total Missouri 3,200,120 ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 1.6% (1.1% OF TOTAL INVESTMENTS) 5,000 Lincoln, Nebraska, Sanitary Sewerage System Revenue Refunding 6/13 at 100.00 AA+ 5,151,950 Bonds, Series 2003, 5.000%, 6/15/28 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 0.7% (0.4% OF TOTAL INVESTMENTS) 1,975 New Mexico State University, Revenue Bonds, Series 2004, 4/14 at 100.00 AA 2,136,022 5.000%, 4/01/19 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 10.1% (6.8% OF TOTAL INVESTMENTS) 2,020 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 1,703,365 Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured 25,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 A 25,146,500 Transportation Revenue Refunding Bonds, Series 2002F, 5.000%, 11/15/31 - NPFG Insured 1,850 New York State Urban Development Corporation, Service 3/15 at 100.00 AAA 1,939,318 Contract Revenue Bonds, Series 2005B, 5.000%, 3/15/25 - FSA Insured (UB) 3,335 New York State Urban Development Corporation, State Personal 3/17 at 100.00 AAA 3,563,581 Income Tax Revenue Bonds, Tender Option Bond Trust 09-6W, 13.124%, 3/15/37 (IF) ------------------------------------------------------------------------------------------------------------------------------------ 32,205 Total New York 32,352,764 ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 2.0% (1.4% OF TOTAL INVESTMENTS) 8,700 North Carolina Medical Care Commission, Revenue Bonds, Maria 10/13 at 100.00 BBB- 6,503,597 Parham Medical Center, Series 2003, 5.375%, 10/01/33 - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 0.8% (0.5% OF TOTAL INVESTMENTS) Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: 65 5.125%, 6/01/24 6/17 at 100.00 BBB 57,893 710 5.875%, 6/01/30 6/17 at 100.00 BBB 617,962 685 5.750%, 6/01/34 6/17 at 100.00 BBB 576,051 1,570 5.875%, 6/01/47 6/17 at 100.00 BBB 1,163,244 ------------------------------------------------------------------------------------------------------------------------------------ 3,030 Total Ohio 2,415,150 ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.3% (0.2% OF TOTAL INVESTMENTS) 1,000 Oklahoma Capitol Improvement Authority, State Facilities 7/15 at 100.00 AA 1,030,260 Revenue Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 2.5% (1.7% OF TOTAL INVESTMENTS) 8,350 Oregon Health Sciences University, Revenue Bonds, Series 1/13 at 100.00 A 7,915,714 2002A, 5.000%, 7/01/32 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 7.4% (5.0% OF TOTAL INVESTMENTS) 3,000 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 AAA 3,430,560 Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem, Series 2003, 5.375%, 8/15/33 (Pre-refunded 8/15/13) 3,500 Pennsylvania Turnpike Commission, Turnpike Subordinate 6/26 at 100.00 AAA 2,548,980 Revenue Bonds, Series 2009C, 0.000%, 6/01/33 - FSA Insured 2,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 8/13 at 100.00 AAA 2,000,520 Ordinance, Fourth Series 1998, 5.000%, 8/01/32 - FSA Insured 925 Philadelphia, Pennsylvania, Water and Wastewater Revenue 1/10 at 100.00 AAA 953,860 Bonds, 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 14,633,580 Revenue Bonds, Philadelphia School District, Series 2003, 5.000%, 6/01/33 (Pre-refunded 6/01/13) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 22,425 Total Pennsylvania 23,567,500 ------------------------------------------------------------------------------------------------------------------------------------
80 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.8% (0.5% OF TOTAL INVESTMENTS) $ 1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA $ 1,120,520 Series 2002II, 5.125%, 7/01/26 (Pre-refunded 7/01/12) - FSA Insured 10,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call AA- 1,356,900 Revenue Bonds, Series 2007A, 0.000%, 8/01/43 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 11,000 Total Puerto Rico 2,477,420 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 5.6% (3.8% OF TOTAL INVESTMENTS) 5,000 Florence County, South Carolina, Hospital Revenue Bonds, 11/14 at 100.00 AAA 5,148,250 McLeod Regional Medical Center, Series 2004A, 5.250%, 11/01/23 - FSA Insured Greenville County School District, South Carolina, Installment Purchase Revenue Bonds, Series 2003: 3,000 5.000%, 12/01/22 (UB) 12/13 at 100.00 AA 3,080,640 1,785 5.000%, 12/01/23 (UB) 12/13 at 100.00 AA 1,829,286 8,000 South Carolina Transportation Infrastructure Bank, Revenue 10/12 at 100.00 A1 8,034,160 Bonds, Series 2002A, 5.000%, 10/01/33 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 17,785 Total South Carolina 18,092,336 ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 10.1% (6.9% OF TOTAL INVESTMENTS) 7,975 Fort Bend Independent School District, Fort Bend County, 8/10 at 100.00 AAA 8,191,601 Texas, General Obligation Bonds, Series 2000, 5.000%, 8/15/25 Grand Prairie Independent School District, Dallas County, Texas, General Obligation Bonds, Series 2003: 1,660 5.375%, 2/15/26 (Pre-refunded 2/15/13) - FSA Insured 2/13 at 100.00 AAA 1,871,798 12,500 5.125%, 2/15/31 (Pre-refunded 2/15/13) - FSA Insured 2/13 at 100.00 AAA 13,994,625 2,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AA 2,098,280 Bonds, Series 2004A, 5.250%, 5/15/25 - NPFG Insured 5,515 Houston, Texas, General Obligation Refunding Bonds, Series 3/12 at 100.00 AA 5,885,387 2002, 5.250%, 3/01/20 - NPFG Insured 465 Katy Independent School District, Harris, Fort Bend and 2/12 at 100.00 AAA 486,209 Waller Counties, Texas, General Obligation Bonds, Series 2002A, 5.125%, 2/15/18 ------------------------------------------------------------------------------------------------------------------------------------ 30,115 Total Texas 32,527,900 ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.5% (0.3% OF TOTAL INVESTMENTS) 1,500 Hampton, Virginia, Revenue Bonds, Convention Center Project, 1/13 at 100.00 A1 1,523,580 Series 2002, 5.125%, 1/15/28 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 9.5% (6.4% OF TOTAL INVESTMENTS) 4,945 Broadway Office Properties, King County, Washington, Lease 12/12 at 100.00 AAA 5,013,884 Revenue Bonds, Washington Project, Series 2002, 5.000%, 12/01/31 - NPFG Insured 5,250 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AA 5,314,208 Consolidated System Revenue Bonds, Series 2002C, 5.125%, 7/01/33 - AMBAC Insured 5,000 King County, Washington, Sewer Revenue Bonds, Series 2006-2, 1/17 at 100.00 AAA 5,547,450 Trust 1200, 13.103%, 1/01/31 - FSA Insured (IF) 2,135 Kitsap County Consolidated Housing Authority, Washington, 7/13 at 100.00 A1 2,176,398 Revenue Bonds, Bremerton Government Center, Series 2003, 5.000%, 7/01/23 - NPFG Insured 1,935 Pierce County School District 343, Dieringer, Washington, 6/13 at 100.00 Aa1 2,137,323 General Obligation Refunding Bonds, Series 2003, 5.250%, 12/01/17 - FGIC Insured 9,670 Washington State, General Obligation Bonds, Series 2003D, 6/13 at 100.00 AA+ 10,124,683 5.000%, 12/01/21 - NPFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 28,935 Total Washington 30,313,946 ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 1.0% (0.7% OF TOTAL INVESTMENTS) 3,000 West Virginia State Building Commission, Lease Revenue No Opt. Call N/R 3,253,110 Refunding Bonds, Regional Jail and Corrections Facility, Series 1998A, 5.375%, 7/01/21 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 5.5% (3.7% OF TOTAL INVESTMENTS) 1,190 Sun Prairie Area School District, Dane County, Wisconsin, 3/14 at 100.00 Aa3 1,315,747 General Obligation Bonds, Series 2004C, 5.250%, 3/01/24 - FSA Insured 4,605 Wisconsin Health and Educational Facilities Authority, 9/13 at 100.00 BBB+ (4) 5,312,420 Revenue Bonds, Franciscan Sisters of Christian Charity Healthcare Ministry, Series 2003A, 5.875%, 9/01/33 (Pre-refunded 9/01/13)
Nuveen Investments 81 NEA | Nuveen Insured Tax-Free Advantage Municipal Fund (continued) | Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN (continued) $ 3,000 Wisconsin Health and Educational Facilities Authority, No Opt. Call A1 $ 3,234,510 Revenue Bonds, Meriter Hospital Inc., Series 1992A, 6.000%, 12/01/22 - FGIC Insured 3,600 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 BBB+ 3,027,277 Revenue Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.125%, 8/15/33 4,750 Wisconsin Health and Educational Facilities Authority, 2/10 at 101.00 A 4,758,265 Revenue Refunding Bonds, Wausau Hospital Inc., Series 1998A, 5.125%, 8/15/20 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 17,145 Total Wisconsin 17,648,219 ------------------------------------------------------------------------------------------------------------------------------------ $ 481,730 Total Long-Term Investments (cost $460,350,970) - 147.1% 471,555,537 ===============--------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 1.2% (0.8% OF TOTAL INVESTMENTS) CALIFORNIA - 1.2% (0.8% OF TOTAL INVESTMENTS) $ 3,790 Westminster Redevelopment Agency, Orange County, California, 11/19 at 100.00 A-1 3,790,000 Westminster Commercial Redevelopment Project 1, Tax Allocation Bonds, Variable Rate Demand Obligations, Tender Option Bond Trust 3009, 0.210%, 11/01/45 - AGC Insured (5) ===============--------------------------------------------------------------------------------------------------------------------- Total Short-Term Investments (cost $3,790,000) 3,790,000 ------------------------------------------------------------------------------------------------------------------ Total Investments (cost $464,140,970) - 148.3% 475,345,537 ------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (4.1)% (13,040,000) ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 2.2% 7,031,337 ------------------------------------------------------------------------------------------------------------------ Auction Rate Preferred Shares, at Liquidation Value - (46.4)% (148,750,000) (6) ------------------------------------------------------------------------------------------------------------------ Net Assets Applicable to Common Shares - 100% $ 320,586,874 ==================================================================================================================
At least 80% of the Fund's net assets are invested in municipal securities that guarantee the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 - Insurance, for more information. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Comments 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) Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments is 31.3%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. 82 Nuveen Investments | Statement of | Assets & Liabilities October 31, 2009
INSURED INSURED PREMIER QUALITY OPPORTUNITY INSURED INCOME (NQI) (NIO) (NIF) ---------------------------------------------------------------------------------------------------------------------------- ASSETS Investments, at value (cost $822,132,451, $2,102,501,409 and $413,684,963, respectively) $ 812,346,224 $ 2,129,287,805 $ 422,940,908 Cash 1,811,377 10,773,888 1,631,451 Cash equivalents (1) -- -- -- Receivables: Dividends and Interest 11,887,695 32,596,801 6,715,944 Investments sold 2,910,000 5,020,542 5,250,000 Deferred offering costs -- -- -- Other assets 197,750 445,249 102,422 ---------------------------------------------------------------------------------------------------------------------------- Total assets 829,153,046 2,178,124,285 436,640,725 ---------------------------------------------------------------------------------------------------------------------------- LIABILITIES Cash overdraft -- -- -- Floating rate obligations 59,145,000 134,833,333 25,665,000 Payables: Investments purchased -- -- -- Auction Rate Preferred shares noticed for redemption, at liquidation value -- -- -- Auction Rate Preferred share dividends 12,663 26,862 5,848 Common share dividends 2,213,554 6,682,224 1,132,759 Interest -- -- -- Offering costs -- -- -- MuniFund Term Preferred shares, at liquidation value -- -- -- Variable Rate Demand Preferred shares, at liquidation value -- -- -- Accrued expenses: Management fees 425,289 1,105,358 232,914 Other 290,080 1,157,620 167,590 ---------------------------------------------------------------------------------------------------------------------------- Total liabilities 62,086,586 143,805,397 27,204,111 ---------------------------------------------------------------------------------------------------------------------------- Auction Rate Preferred shares, at liquidation value 245,850,000 675,475,000 130,125,000 ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 521,216,460 $ 1,358,843,888 $ 279,311,614 ============================================================================================================================ Common shares outstanding 38,306,830 95,589,803 19,419,608 ============================================================================================================================ Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 13.61 $ 14.22 $ 14.38 ============================================================================================================================ NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ---------------------------------------------------------------------------------------------------------------------------- Common shares, $.01 par value per share $ 383,068 $ 955,898 $ 194,196 Paid-in surplus 537,282,110 1,333,678,460 270,100,153 Undistributed (Over-distribution of) net investment income 5,239,968 13,750,540 3,446,640 Accumulated net realized gain (loss) from investments and derivative transactions (11,902,459) (16,327,406) (3,685,320) Net unrealized appreciation (depreciation) of investments (9,786,227) 26,786,396 9,255,945 ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 521,216,460 $ 1,358,843,888 $ 279,311,614 ============================================================================================================================ Authorized shares: Common 200,000,000 200,000,000 200,000,000 Auction Rate Preferred 1,000,000 1,000,000 1,000,000 Variable Rate Demand Preferred -- -- -- MuniFund Term Preferred -- -- -- ============================================================================================================================
(1) Segregated for the payment of Auction Rate Preferred shares noticed for redemption. See accompanying notes to financial statements. Nuveen Investments 83 | Statement of | Assets & Liabilities (continued) October 31, 2009
INSURED INSURED INSURED DIVIDEND TAX-FREE PREMIUM INCOME 2 ADVANTAGE ADVANTAGE (NPX) (NVG) (NEA) ---------------------------------------------------------------------------------------------------------------------------- ASSETS Investments, at value (cost $748,775,936, $639,498,137 and $464,140,970, respectively) $ 748,810,257 $ 658,061,178 $ 475,345,537 Cash -- 1,196,918 1,565,603 Cash equivalents(1) -- 106,158,035 -- Receivables: Dividends and Interest 13,334,580 10,006,033 7,489,589 Investments sold 9,679,732 1,439,539 -- Deferred offering costs 2,465,742 1,861,870 -- Other assets 50,057 128,632 139,217 ---------------------------------------------------------------------------------------------------------------------------- Total assets 774,340,368 778,852,205 484,539,946 ---------------------------------------------------------------------------------------------------------------------------- LIABILITIES Cash overdraft 1,033,897 -- -- Floating rate obligations 57,980,000 28,413,334 13,040,000 Payables: Investments purchased 9,639,100 -- -- Auction Rate Preferred shares noticed for redemption, at liquidation value -- 106,125,000 -- Auction Rate Preferred share dividends -- 8,489 5,941 Common share dividends 2,048,944 2,024,442 1,648,773 Interest -- 106,200 -- Offering costs -- 524,637 -- MuniFund Term Preferred shares, at liquidation value -- 108,000,000 -- Variable Rate Demand Preferred shares, at liquidation value 219,000,000 -- -- Accrued expenses: Management fees 397,907 277,368 201,939 Other 171,782 215,246 306,419 ---------------------------------------------------------------------------------------------------------------------------- Total liabilities 290,271,630 245,694,716 15,203,072 ---------------------------------------------------------------------------------------------------------------------------- Auction Rate Preferred shares, at liquidation value -- 91,950,000 148,750,000 ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 484,068,738 $ 441,207,489 $ 320,586,874 ============================================================================================================================ Common shares outstanding 37,353,512 29,802,900 22,234,602 ============================================================================================================================ Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 12.96 $ 14.80 $ 14.42 ============================================================================================================================ NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ---------------------------------------------------------------------------------------------------------------------------- Common shares, $.01 par value per share $ 373,535 $ 298,029 $ 222,346 Paid-in surplus 500,123,401 424,847,204 316,226,927 Undistributed (Over-distribution of) net investment income 3,094,419 4,426,545 2,920,016 Accumulated net realized gain (loss) from investments and derivative transactions (19,556,938) (6,927,330) (9,986,982) Net unrealized appreciation (depreciation) of investments 34,321 18,563,041 11,204,567 ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 484,068,738 $ 441,207,489 $ 320,586,874 ============================================================================================================================ Authorized shares: Common Unlimited Unlimited Unlimited Auction Rate Preferred Unlimited Unlimited Unlimited Variable Rate Demand Preferred Unlimited -- -- MuniFund Term Preferred -- Unlimited -- ============================================================================================================================
(1) Segregated for the payment of Auction Rate Preferred shares noticed for redemption. See accompanying notes to financial statements. 84 Nuveen Investments | Statement of | Operations Year Ended October 31, 2009
INSURED INSURED PREMIER QUALITY OPPORTUNITY INSURED INCOME (NQI) (NIO) (NIF) ---------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $ 44,402,226 $ 94,355,354 $ 22,673,906 ---------------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 4,744,278 10,510,630 2,634,726 Auction fees 525,206 1,191,951 283,733 Dividend disbursing agent fees 50,000 66,632 30,000 Shareholders' servicing agent fees and expenses 64,889 104,730 26,003 Interest expense and amortization of offering costs 536,337 1,188,733 199,284 Liquidity fees -- -- -- Custodian's fees and expenses 134,278 296,671 78,134 Directors'/Trustees' fees and expenses 23,835 74,394 13,053 Professional fees 62,580 124,034 38,934 Shareholders' reports - printing and mailing expenses 128,862 277,333 72,880 Stock exchange listing fees 13,128 28,143 9,215 Investor relations expense 47,369 108,284 25,898 Other expenses 49,031 94,358 36,899 ---------------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 6,379,793 14,065,893 3,448,759 Custodian fee credit (28,225) (62,226) (13,576) Expense reimbursement -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Net expenses 6,351,568 14,003,667 3,435,183 ---------------------------------------------------------------------------------------------------------------------------- Net investment income 38,050,658 80,351,687 19,238,723 ---------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments (3,961,756) 1,491,035 (28,901) Forward swaps -- -- -- Change in net unrealized appreciation (depreciation) of: Investments 70,606,759 128,404,860 31,808,470 Forward swaps -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) 66,645,003 129,895,895 31,779,569 --------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO AUCTION RATE PREFERRED SHAREHOLDERS From net investment income (2,175,313) (4,883,766) (1,158,067) ---------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Auction Rate Preferred shareholders (2,175,313) (4,883,766) (1,158,067) ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations $ 102,520,348 $ 205,363,816 $ 49,860,225 ============================================================================================================================
See accompanying notes to financial statements. Nuveen Investments 85 | Statement of | Operations (continued) October 31, 2009
INSURED INSURED INSURED DIVIDEND TAX-FREE PREMIUM INCOME 2 ADVANTAGE ADVANTAGE (NPX) (NVG) (NEA) ---------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $ 38,844,230 $ 33,764,951 $ 21,058,746 ---------------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 4,334,948 4,043,119 2,459,768 Auction fees 222,040 428,068 259,205 Dividend disbursing agent fees 17,733 30,000 20,401 Shareholders' servicing agent fees and expenses 37,000 6,415 3,873 Interest expense and amortization of offering costs 2,339,922 324,362 126,796 Liquidity fees 1,694,236 -- -- Custodian's fees and expenses 126,379 115,415 72,386 Directors'/Trustees' fees and expenses 21,291 20,212 16,829 Professional fees 30,854 51,339 34,290 Shareholders' reports - printing and mailing expenses 111,622 99,515 67,165 Stock exchange listing fees 12,805 4,211 2,636 Investor relations expense 42,659 38,905 22,727 Other expenses 24,255 33,391 39,990 ---------------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 9,015,744 5,194,952 3,126,066 Custodian fee credit (24,555) (4,691) (13,931) Expense reimbursement -- (1,096,924) (644,019) ---------------------------------------------------------------------------------------------------------------------------- Net expenses 8,991,189 4,093,337 2,468,116 ---------------------------------------------------------------------------------------------------------------------------- Net investment income 29,853,041 29,671,614 18,590,630 ---------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments (3,699,493) (5,791,986) (1,232,542) Forward swaps -- 5,000,000 -- Change in net unrealized appreciation (depreciation) of: Investments 57,348,025 54,873,147 34,689,209 Forward swaps -- (1,124,391) -- ---------------------------------------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) 53,648,532 52,956,770 33,456,667 ---------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO AUCTION RATE PREFERRED SHAREHOLDERS From net investment income -- (1,745,832) (1,057,458) ---------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Auction Rate Preferred shareholders -- (1,745,832) (1,057,458) ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations $ 83,501,573 $ 80,882,552 $ 50,989,839 ============================================================================================================================
See accompanying notes to financial statements. 86 Nuveen Investments | Statement of | Changes in Net Assets
INSURED QUALITY (NQI) INSURED OPPORTUNITY (NIO) --------------------------------- --------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 10/31/09 10/31/08 10/31/09 10/31/08 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 38,050,658 $ 37,792,155 $ 80,351,687 $ 78,939,975 Net realized gain (loss) from: Investments (3,961,756) (4,746,677) 1,491,035 (12,623,776) Forward swaps -- -- -- -- Change in net unrealized appreciation (depreciation) of: Investments 70,606,759 (115,993,313) 128,404,860 (199,798,296) Forward swaps -- -- -- -- Distributions to Auction Rate Preferred shareholders: From net investment income (2,175,313) (11,668,364) (4,883,766) (24,746,755) From accumulated net realized gains -- -- -- (61,352) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 102,520,348 (94,616,199) 205,363,816 (158,290,204) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (28,915,237) (27,878,967) (59,230,779) (56,634,349) From accumulated net realized gains -- -- -- (154,162) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (28,915,237) (27,878,967) (59,230,779) (56,788,511) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Issued in the Reorganization(1) -- -- 207,492,882 -- Net proceeds from shares issued to shareholders due to reinvestment of distributions 148,339 -- -- -- Cost of repurchases -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions 148,339 -- 207,492,882 -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 73,753,450 (122,495,166) 353,625,919 (215,078,715) Net assets applicable to Common shares at the beginning of year 447,463,010 569,958,176 1,005,217,969 1,220,296,684 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $ 521,216,460 $ 447,463,010 $ 1,358,843,888 $ 1,005,217,969 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 5,239,968 $ (1,704,040) $ 13,750,540 $ (2,109,393) ====================================================================================================================================
(1) Common shares issued in the Reorganization of Nuveen Florida Premium Income Municipal Fund (NFL). See accompanying notes to financial statements. Nuveen Investments 87 | Statement of | Changes in Net Assets (continued)
PREMIER INSURED INSURED PREMIUM INCOME (NIF) INCOME 2 (NPX) --------------------------------- --------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 10/31/09 10/31/08 10/31/09 10/31/08 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 19,238,723 $ 18,677,152 $ 29,853,041 $ 30,045,285 Net realized gain (loss) from: Investments (28,901) (2,431,194) (3,699,493) (7,350,763) Forward swaps -- -- -- 5,200 Change in net unrealized appreciation (depreciation) of: Investments 31,808,470 (43,684,607) 57,348,025 (79,485,056) Forward swaps -- -- -- (165,919) Distributions to Auction Rate Preferred shareholders: From net investment income (1,158,067) (5,924,805) -- (7,428,415) From accumulated net realized gains -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 49,860,225 (33,363,454) 83,501,573 (64,379,668) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (14,137,477) (12,447,970) (24,989,504) (23,084,472) From accumulated net realized gains -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (14,137,477) (12,447,970) (24,989,504) (23,084,472)) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Issued in the Reorganization -- -- -- -- Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- -- -- Cost of repurchases -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 35,722,748 (45,811,424) 58,512,069 (87,464,140) Net assets applicable to Common shares at the beginning of year 243,588,866 289,400,290 425,556,669 513,020,809 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $ 279,311,614 $ 243,588,866 $ 484,068,738 $ 425,556,669 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 3,446,640 $ (488,406) $ 3,094,419 $ (1,790,058) ====================================================================================================================================
88 Nuveen Investments
INSURED DIVIDEND INSURED TAX-FREE ADVANTAGE (NVG) ADVANTAGE (NEA) --------------------------------- --------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 10/31/09 10/31/08 10/31/09 10/31/08 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 29,671,614 $ 29,763,002 $ 18,590,630 $ 17,541,421 Net realized gain (loss) from: Investments (5,791,986) (1,658,018) (1,232,542) 1,751,437 Forward swaps 5,000,000 -- -- -- Change in net unrealized appreciation (depreciation) of: Investments 54,873,147 (66,810,547) 34,689,209 (44,503,698) Forward swaps (1,124,391) 1,124,391 -- -- Distributions to Auction Rate Preferred shareholders: From net investment income (1,745,832) (8,645,473) (1,057,458) (5,024,148) From accumulated net realized gains -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 80,882,552 (46,226,645) 50,989,839 (30,234,988) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (22,593,095) (20,720,244) (13,551,237) (13,115,689) From accumulated net realized gains -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (22,593,095) (20,720,244) (13,551,237) (13,115,689) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Issued in the Reorganization(2) -- -- 54,285,213 -- Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- -- 34,771 Cost of repurchases (117,163) -- (212,353) -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions (117,163) -- 54,072,860 34,771 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 58,172,294 (66,946,889) 91,511,462 (43,315,906) Net assets applicable to Common shares at the beginning of year 383,035,195 449,982,084 229,075,412 272,391,318 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $ 441,207,489 $ 383,035,195 $ 320,586,874 $ 229,075,412 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 4,426,545 $ (853,988) $ 2,920,016 $ (1,056,455) ====================================================================================================================================
(2) Common shares issued in the Reorganization of Nuveen Insured Florida Tax-Free Advantage Municipal Fund (NWF). See accompanying notes to financial statements. Nuveen Investments 89 | Statement of | Cash Flows Year ended October 31, 2009
INSURED INSURED INSURED QUALITY OPPORTUNITY PREMIUM INCOME 2 (NQI) (NIO) (NPX) ------------------------------------------------------------------------------------------------------------------------------------ CASH FLOWS FROM OPERATING ACTIVITIES: NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS $ 102,520,348 $ 205,363,816 $ 83,501,573 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 (33,494,698) (149,227,193) (51,097,265) Proceeds from sales and maturities of investments 49,494,596 134,298,263 56,234,011 Proceeds from (Purchases of) short-term investments, net 18,655,000 11,078,000 12,975,000 Assets and liabilities acquired in the Reorganization -- 24,887,519 -- Amortization (Accretion) of premiums and discounts, net (705,789) (5,378,973) (136,678) (Increase) Decrease in receivable for dividends and interest (174,774) (4,725,598) (310,042) (Increase) Decrease in receivable for investments sold (2,595,000) (4,460,542) (9,629,700) (Increase) Decrease in other assets (100,669) (259,619) 25,808 Increase (Decrease) in payable for investments purchased -- (5,214,363) 9,639,100 Increase (Decrease) in payable for Auction Rate Preferred share dividends (68,137) (114,903) -- Increase (Decrease) in accrued management fees 30,342 262,825 58,264 Increase (Decrease) in accrued other liabilities 8,587 596,823 (92,948) Net realized (gain) loss from investments 3,961,756 (1,491,035) 3,699,493 Change in net unrealized (appreciation) depreciation of investments (70,606,759) (128,404,860) (57,348,025) Taxes paid on undistributed capital gains (73) (435) (7,310) ------------------------------------------------------------------------------------------------------------------------------------ Net cash provided by (used in) operating activities 66,924,730 77,209,725 47,511,281 ------------------------------------------------------------------------------------------------------------------------------------ CASH FLOWS FROM FINANCING ACTIVITIES: Increase (Decrease) in floating rate obligations 8,370,000 15,605,000 (23,965,000) Increase (Decrease) in cash overdraft balance -- -- 1,033,897 Cash distributions paid to Common shareholders (28,540,465) (56,685,394) (24,651,955) (Increase) Decrease in deferred offering costs -- -- 49,352 Increase (Decrease) in payable for offering costs -- -- (252,314) Increase (Decrease) in Auction Rate Preferred shares, at liquidation value (52,575,000) (50,050,000) -- ------------------------------------------------------------------------------------------------------------------------------------ Net cash provided by (used in) financing activities (72,745,465) (91,130,394) (47,786,020) ------------------------------------------------------------------------------------------------------------------------------------ NET INCREASE (DECREASE) IN CASH (5,820,735) (13,920,669) (274,739) Cash at the beginning of year 7,632,112 24,694,557 274,739 ------------------------------------------------------------------------------------------------------------------------------------ Cash at the End of Year $ 1,811,377 $ 10,773,888 $ -- ====================================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION During the current fiscal period Insured Opportunity (NIO) acquired all the net assets of Nuveen Florida Premium Income Municipal Fund (NFL) through a tax-free Reorganization. See Notes to Financial Statements, Footnote 1 for more information. Non-cash financing activities not included herein consist of reinvestments of Common share distributions of $148,339 for Insured Quality (NQI). Cash paid for interest (excluding amortization of offering costs, where applicable) was as follows:
INSURED INSURED INSURED QUALITY OPPORTUNITY PREMIUM INCOME 2 (NQI) (NIO) (NPX) ------------------------------------------------------------------------------------------------------------------------------------ $ 536,337 $ 1,188,733 $ 2,255,248 ====================================================================================================================================
See accompanying notes to financial statements. 90 Nuveen Investments | Notes to | Financial Statements 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 (NYSE) while Common shares of Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA) are traded on the NYSE Amex. The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end, management investment companies. During the current fiscal period, the following Nuveen Florida closed-end municipal funds were reorganized into the following existing Nuveen national municipal closed-end funds, as follows (collectively, the "Reorganizations") o Nuveen Insured Florida Premium Income Municipal Fund (NFL) into Insured Opportunity (NIO); o Nuveen Insured Florida Tax-Free Advantage Municipal Fund (NWF) into Insured Tax-Free Advantage (NEA) Each of these Funds called a special meeting of shareholders, originally scheduled in each case for May 15, 2009, to vote on the Reorganizations. Those meetings were subsequently adjourned to and reconvened in June and July, at which time, shareholders of each of Insured Florida Premium Income (NFL), Insured Florida Tax-Free Advantage (NWF), Insured Opportunity (NIO) and Insured Tax-Free Advantage (NEA) approved its respective Reorganization, with more than 80% of participating shares of each fund voting in favor of the Reorganization. After the close of business on October 16, 2009, Insured Opportunity (NIO) and Insured Tax-Free Advantage (NEA) acquired all the net assets of Insured Florida Premium Income (NFL) and Insured Florida Tax-Free Advantage (NWF), respectively, pursuant to the plan of Reorganizations described above. The acquisition was accomplished by a tax-free exchange of Insured Florida Premium Income (NFL) and Insured Florida Tax-Free Advantage (NWF) Common shares for Insured Opportunity (NIO) and Insured Tax-Free Advantage (NEA) Common shares, respectively. On October 16, 2009, the net assets of Insured Florida Premium Income (NFL) and Insured Florida Tax-Free Advantage (NWF) were $207,492,882 and $54,285,213, respectively. Insured Florida Premium Income's (NFL) and Insured Florida Tax-Free Advantage's net assets applicable to Common shares at that date included $8,234,921 and $3,171,992 of net unrealized appreciation, respectively. Each Fund's net unrealized appreciation was combined with that of Insured Opportunity (NIO) and Insured Tax-Free Advantage (NEA), respectively. The combined net assets applicable to Common shares of Insured Opportunity (NIO) and Insured Tax-Free Advantage (NEA) immediately after the acquisitions were $1,372,440,081 and $323,751,223, respectively. For accounting and performance reporting purposes, Insured Opportunity (NIO) and Insured Tax-Free Advantage (NEA) are the survivors. Prior to the Reorganizations, each of Insured Florida Premium Income (NFL) and Insured Florida Tax-Free Advantage (NWF) established a reserve for certain costs and expenses associated with the Reorganizations, including amounts estimated for the advancement of legal costs in connection with legal proceedings brought by a shareholder of the Funds challenging the Reorganizations. The amount of such reserve is included as a component of Insured Opportunity's (NIO) and Insured Tax-Free Advantage's (NEA) "Accrued other expenses" on the Statement of Assets and Liabilities. 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 portfolio of municipal obligations issued by state and local government authorities or certain U.S. territories. In June 2009, the Financial Accounting Standards Board (FASB) established the FASB Accounting Standards Codification(TM) (the "Codification") as the single source of authoritative accounting principles recognized by the FASB in the preparation of financial statements in conformity with generally accepted accounting principles (GAAP). The Codification supersedes existing non-grandfathered, non-SEC accounting and reporting standards. The Codification did not change GAAP but rather organized it into a hierarchy where all guidance within the Codification carries an equal level of authority. The Codification became effective for financial statements issued for interim and annual periods ending after September 15, 2009. The Codification did not have a material effect on the Funds' financial statements. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with US generally accepted accounting principles. Nuveen Investments 91 | Notes to | Financial Statements (continued) Investment Valuation Exchange-listed securities are generally valued at the last sales price on the security exchange on which such securities are primarily traded. Securities traded on a securities exchange for which there are no transactions on a given day or securities not listed on a securities exchange are valued at the mean of the closing bid and asked prices. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. 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. Prices of forward swap contracts are also provided by an independent pricing service approved by each 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 or, in the absence of a pricing service for a particular investment or derivative instrument, the Board of Directors/Trustees of the Fund, or its designee, may establish fair value using a wide variety of market data including yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor's credit characteristics considered relevant. Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates 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 October 31, 2009, Insured Premium Income 2 (NPX) had outstanding when issued/delayed delivery purchase commitments of $9,639,100. There were no such outstanding purchase commitments in any of the other Funds. Investment Income Dividend income is recorded on the ex-dividend date. Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any. Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all 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 regular federal income tax, and in the case of Insured Tax-Free Advantage (NEA) the alternative minimum tax applicable to individuals, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation. For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. 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). Furthermore, management of the Funds is 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 US generally accepted accounting principles. Auction Rate Preferred Shares The following Funds have issued and outstanding Auction Rate Preferred shares, $25,000 stated value per share, as a means of effecting financial leverage. Each Fund's Auction Rate 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. As of October 31, 2009, the number of Auction Rate Preferred shares outstanding, by Series and in total, for each Fund is as follows: 92 Nuveen Investments
PREMIER INSURED INSURED INSURED INSURED INSURED DIVIDEND TAX-FREE QUALITY OPPORTUNITY INCOME ADVANTAGE ADVANTAGE (NQI) (NIO) (NIF) (NVG) (NEA) ------------------------------------------------------------------------------------------------------------------------------------ Number of shares: Series M 2,009 3,372 -- 1,247 -- Series T 2,010 3,372 -- 1,217 2,440 Series W 2,011 3,373 678 -- 2,440 Series W2 -- 2,698 -- -- 1,070** Series W3 -- 1,510* -- -- -- Series TH 1,794 3,372 2,263 1,214 -- Series TH2 -- 3,374 -- -- -- Series TH3 -- 2,577* -- -- -- Series F 2,010 3,371 2,264 -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total 9,834 27,019 5,205 3,678 5,950 ====================================================================================================================================
* Preferred shares issued in the Reorganization of Nuveen Florida Premium Income Municipal Fund (NFL). ** Preferred shares issued in the Reorganization of Nuveen Insured Florida Tax-Free Advantage Municipal Fund (NWF). Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the Auction Rate Preferred shares issued by the Funds than there were offers to buy. This meant that these auctions "failed to clear," and that many Auction Rate Preferred shareholders who wanted to sell their shares in these auctions were unable to do so. Auction Rate 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 Rate Preferred shares. These developments have generally not affected the portfolio management or investment policies of the Funds. However, one continuing implication of these auction failures for Common shareholders is that the Funds' cost of leverage likely has been incrementally higher at times than it otherwise might have been had the auctions continued to be successful. As a result, the Funds' future Common share earnings may likely haven been incrementally lower than they otherwise might have been. As of October 31, 2009, the aggregate amount of outstanding Auction Rate Preferred shares redeemed by 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) ---------------------------------------------------------------------------------------------------------------------------------- Auction Rate Preferred shares redeemed, at liquidation value $ 72,150,000 $ 115,525,000 $ 30,875,000 $ 268,900,000 $ 141,050,000 $ 24,250,000 ==================================================================================================================================
Effective May 1, 2009, auction participation fees with respect to auctions that have failed have been reduced from 25 bps (annualized) to 15 bps (annualized). All auction participants have signed new agreements incorporating this change. MuniFund Term Preferred Shares During the fiscal year ended October 31, 2009, Insured Dividend Advantage (NVG) issued $108,000,000 of 2.95%, Series 2014 MuniFund Term Preferred shares, with a $10 liquidation value per share. Dividends, which are included as interest expense for financial reporting purposes, will be paid monthly at a fixed annual rate of 2.95%, subject to adjustment in certain circumstances. Proceeds from the issuance of MuniFund Term Preferred shares, net of offering expenses, were used to redeem a portion of the Fund's outstanding Auction Rate Preferred shares totaling $106,125,000. The Fund is obligated to redeem the MuniFund Term Preferred shares on November 1, 2014, unless earlier redeemed or repurchased by the Fund. MuniFund Term Preferred shares are subject to optional and mandatory redemption in certain circumstances. As of November 1, 2010, the MuniFund Term Preferred shares will be subject to redemption at the option of the Fund, subject to payment of a premium until November 1, 2011, and at par thereafter. The MuniFund Term Preferred shares also will be subject to redemption, at the option of the Fund, at par in the event of certain changes in the credit rating of the MuniFund Term Preferred shares. The Fund may be obligated to redeem certain of the MuniFund Term Preferred shares if the Fund fails to maintain certain asset coverage and leverage ratio requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends. The MuniFund Term Preferred shares trade on the NYSE under the symbol "NVG Pr C." During the period October 19, 2009 through October 31, 2009, the Fund had an average balance of $105,538,462 MuniFund Term Preferred shares outstanding. For financial reporting purposes only, the liquidation value of MuniFund Term Preferred shares is recorded as a liability on the Statement of Assets and Liabilities. Unpaid dividends on the MuniFund Term Preferred shares are recognized as "Interest payable" on the Statement of Assets and Liabilities. Nuveen Investments 93 | Notes to | Financial Statements (continued) Dividends paid on the MuniFund Term Preferred shares are included as a component of "Interest expense and amortization of offering costs" on the Statement of Operations. Variable Rate Demand Preferred Shares On August 7, 2008, Insured Premium Income 2 (NPX) issued 2,190 Series 1 Variable Rate Demand Preferred shares, $100,000 liquidation value per share, in a privately negotiated offering. Proceeds of this offering along with the proceeds from the Fund's creation of tender option bonds (TOBs), also known as "floaters" or floating rate obligations, were used to redeem all of the Fund's outstanding Auction Rate Preferred shares totaling $268,900,000. The Variable Rate Demand Preferred shares were offered to institutional buyers as defined pursuant to Rule 144A under the Securities Act of 1933, have a maturity date of August 1, 2038 and include a liquidity feature that allows the Variable Rate Demand Preferred shareholders to have their shares purchased by the liquidity provider in the event that sell orders are not matched with purchase orders in a remarketing. Dividends on the Variable Rate Demand Preferred shares (which are treated as interest payments for financial reporting purposes) are set weekly at a rate established by a remarketing agent; therefore, the liquidation value of the Variable Rate Demand Preferred shares approximates fair value. Subject to certain conditions, Variable Rate Demand Preferred shares may be redeemed, in whole or in part, at any time at the option of the Fund. The Fund may also redeem certain of the Variable Rate Demand Preferred shares if the Fund fails to maintain certain asset coverage requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends. Insured Premium Income 2 (NPX) had all $219,000,000 of its Variable Rate Demand Preferred shares outstanding during the fiscal year ended October 31, 2009, with an annualized interest rate of 0.73%. For financial reporting purposes only, the liquidation value of Variable Rate Demand Preferred shares is recorded as a liability on the Statement of Assets and Liabilities and the dividends paid on the Variable Rate Demand Preferred shares are included as a component of "Interest expense and amortization of offering costs" on the Statement of Operations. In addition to interest expense, the Fund also paid a per annum liquidity fee which is recognized as "Liquidity fees" on the Statement of Operations. Insurance Except to the extent that each of Insured Quality (NQI), Insured Opportunity (NIO) and Insured Premium Income 2 (NPX) invests in temporary investments, all of the net assets of each Fund will be invested in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest or backed by an escrow or trust account containing sufficient U.S. Government or U.S. Government agency securities to ensure timely payment of principal and interest. Insurers must have a claims paying ability rated "Aaa" by Moody's or "AAA" by Standard & Poor's. Municipal securities backed by an escrow account or trust account will not constitute more than 20% of each Fund's net assets. Under normal circumstances, Premier Insured Income (NIF), Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA) invest at least 80% of their net assets, (as defined in Footnote 7 - Management Fees and Other Transactions with Affiliates) in municipal securities that are covered by insurance guaranteeing 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 by at least one independent rating agency. In addition, each of Premier Insured Income (NIF), Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA) invests at least 80% of its net assets in municipal securities that are rated at least "AA" at the time of purchase (based on the higher of the rating of the insurer, if any, or the underlying security) by at least one independent rating agency, or are unrated but judged to be of similar credit quality by Nuveen Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. ("Nuveen"), or are backed by an escrow or trust account containing sufficient U.S. Government or U.S. Government agency securities or U.S. Treasury-issued State and Local Government Series (SLGS) securities to ensure timely payment of principal and interest. Inverse floating rate securities whose underlying bonds are covered by insurance are included for purposes of the 80% test. Each of Premier Insured Income (NIF), Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA) may also invest up to 20% of its net assets in municipal securities rated below "AA" but at least "BBB" (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. 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. 94 Nuveen Investments 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"). 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 "(IF) - Inverse floating rate investment." An investment in a self-deposited inverse floater is accounted for as a financing transaction. In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as "(UB) - Underlying bond of an inverse floating rate trust reflected as a financing transaction," 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 recognizes the related interest paid to the holders of the short-term floating rate certificates as "Interest expense and amortization of offering costs" on the Statement of Operations. During the fiscal year ended October 31, 2009, each Fund invested in externally-deposited inverse floaters and/or self-deposited inverse floaters. Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a "recourse trust" or "credit recovery swap") (such agreements referred to herein as "Recourse Trusts") 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 issued by the trust plus any shortfalls in interest cash flows. Under these agreements, a Fund's potential exposure to losses related to or on inverse floaters may increase beyond the value of a Fund's inverse floater investments as a Fund may potentially be liable to fulfill all amounts owed to holders of the floating rate certificates. At period end, any such shortfall is recognized as "Unrealized depreciation on Recourse Trusts" on the Statement of Assets and Liabilities. At October 31, 2009, each Fund's maximum exposure to externally-deposited Recourse Trusts, 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) ----------------------------------------------------------------------------------------------------------------------------------- Maximum exposure to Recourse Trusts $ 19,941,650 $ 20,430,000 $ 8,070,000 $ 11,290,000 $ -- $ 6,665,000 ===================================================================================================================================
The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters during the fiscal year ended October 31, 2009, 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 outstanding $ 59,245,479 $ 130,965,566 $ 22,183,301 $ 70,952,082 $ 23,153,142 $ 12,766,726 Average annual interest rate and fees .91% .91% .90% .91% .90% .99% ===================================================================================================================================
Forward Swap Contracts Each Fund is authorized to enter into forward interest rate swap contracts consistent with their investment objectives and policies to reduce, increase or otherwise alter its risk profile or to alter its portfolio characteristics (i.e. duration, yield curve positioning and credit quality). Each Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. 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 Nuveen Investments 95 | Notes to | Financial Statements (continued) notional amount of the 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. Forward interest rate swap contracts are valued daily. The net amount recorded on these transactions for each counterparty is recognized on the Statement of Assets and Liabilities as "Unrealized appreciation or depreciation on forward swaps" with the change during the fiscal period recognized on the Statement of Operations as "Change in net unrealized appreciation (depreciation) of forward swaps." 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. Net realized gains and losses during the fiscal period are recognized on the Statement of Operations as "Net realized gain (loss) from forward swaps." 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. Insured Dividend Advantage (NVG) was the only Fund to invest in forward interest rate swap transactions during the fiscal year ended October 31, 2009. The average notional amount of forward swap contracts outstanding during the fiscal year ended October 31, 2009, was as follows: INSURED DIVIDEND ADVANTAGE (NVG) -------------------------------------------------------------------------------- Average notional amount of forward swap contracts outstanding $ 5,050,000* ================================================================================ * The average notional amount is calculated based on the outstanding notional amount at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year. The Fund was not invested in forward swap contracts at the end of the current fiscal year. Refer to Footnote 3 - Derivative Instruments and Hedging Activities for further details on swap contract activity. Market and Counterparty Credit Risk In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions. The extent of each Fund's exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Futures contracts expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchange's clearinghouse, which is counterparty to all exchange traded futures, guarantees the futures contracts against default. Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, 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 valuations fluctuate, either up or down, by at least the predetermined threshold amount. 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. Offering Costs Costs incurred by Insured Premium Income 2 (NPX) in connection with its offering of the Variable Rate Demand Preferred shares ($2,535,000) were recorded as a deferred charge which will be amortized over the 30-year life of the shares. Costs incurred by Insured Dividend Advantage (NVG) in connection with its offering of the MuniFund Preferred shares ($1,875,000) were recorded as a deferred charge which will be amortized over the 5-year life of the shares. Each Fund's amortized deferred charges are included as a component of "Interest expense and amortization of offering costs" on the Statement of Operations. 96 Nuveen Investments 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 US 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. FAIR VALUE MEASUREMENTS During the current fiscal period, the Funds adopted authoritative guidance under GAAP on determining fair value measurements. This guidance defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosure about fair value measurements. In determining the value of each Fund's investments various inputs are used. These inputs are summarized in the three broad levels listed below: Level 1 - Quoted prices in active markets for identical securities. Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 - Significant unobservable inputs (including management's assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund's fair value measurements as of October 31, 2009:
INSURED QUALITY (NQI) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL --------------------------------------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 812,346,224 $ -- $ 812,346,224 ================================================================================================================================= INSURED OPPORTUNITY (NIO) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL --------------------------------------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 2,115,920,805 $ -- $ 2,115,920,805 Short-Term Investments -- 13,367,000 -- 13,367,000 --------------------------------------------------------------------------------------------------------------------------------- Total $ -- $ 2,129,287,805 $ -- $ 2,129,287,805 ================================================================================================================================= PREMIER INSURED INCOME (NIF) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL --------------------------------------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 422,940,908 $ -- $ 422,940,908 ================================================================================================================================= INSURED PREMIUM INCOME 2 (NPX) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL --------------------------------------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 748,810,257 $ -- $ 748,810,257 ================================================================================================================================= INSURED DIVIDEND ADVANTAGE (NVG) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL --------------------------------------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 656,829,129 $ -- $ 656,829,129 Investment Companies 1,232,049 -- -- 1,232,049 --------------------------------------------------------------------------------------------------------------------------------- Total $ 1,232,049 $ 656,829,129 $ -- $ 658,061,178 ================================================================================================================================= INSURED TAX-FREE ADVANTAGE (NEA) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL --------------------------------------------------------------------------------------------------------------------------------- Investments: Municipal Bonds $ -- $ 471,555,537 $ -- $ 471,555,537 Short-Term Investments -- 3,790,000 -- 3,790,000 --------------------------------------------------------------------------------------------------------------------------------- Total $ -- $ 475,345,537 $ -- $ 475,345,537 =================================================================================================================================
Nuveen Investments 97 | Notes to | Financial Statements (continued) 3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES During the current fiscal period, the Funds adopted amendments to authoritative guidance under GAAP on disclosures about derivative instruments and hedging activities. This guidance is intended to enhance financial statement disclosures for derivative instruments and hedging activities and enable investors to better understand: a) how and why a fund uses derivative instruments; b) how derivative instruments are accounted for; and c) how derivative instruments affect a fund's financial position, results of operations and cash flows, if any. The Funds record derivative instruments at fair value with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds' investments in derivatives may represent economic hedges, under this guidance they are considered to be non-hedge transactions for financial reporting purposes. For additional information on the derivative instruments in which each Fund was invested during and at the end of the reporting period, refer to the Portfolio of Investments, Financial Statements and Footnote 1 - General Information and Significant Accounting Policies. The following tables present the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the fiscal year ended October 31, 2009, on derivative instruments, as well as the primary risk exposure associated with each. Insured Dividend Advantage (NVG) invested in derivative instruments during the fiscal year ended October 31, 2009. None of the Funds had derivative contracts outstanding at October 31, 2009. INSURED DIVIDEND ADVANTAGE NET REALIZED GAIN (LOSS) FROM FORWARD SWAPS (NVG) -------------------------------------------------------------------------------- RISK EXPOSURE Interest Rate $ 5,000,000 ================================================================================ INSURED DIVIDEND CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ADVANTAGE OF FORWARD SWAPS (NVG) -------------------------------------------------------------------------------- RISK EXPOSURE Interest Rate $ (1,124,391) ================================================================================ 4. FUND SHARES Common Shares Transactions in Common shares were as follows:
INSURED INSURED PREMIER INSURED QUALITY (NQI) OPPORTUNITY (NIO) INCOME (NIF) ------------------- --------------------- ----------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED 10/31/09 10/31/08 10/31/09 10/31/08 10/31/09 10/31/08 --------------------------------------------------------------------------------------------------------------------------- Common shares: Issued in the Reorganization -- -- 14,451,767* -- -- -- Issued to shareholders due to reinvestment of distributions 11,552 -- -- -- -- -- Repurchased -- -- -- -- -- -- =========================================================================================================================== Weighted average Common share: Price per share repurchased -- -- -- -- -- -- Discount per share repurchased -- -- -- -- -- -- ===========================================================================================================================
INSURED INSURED INSURED PREMIUM INCOME 2 (NPX) DIVIDEND ADVANTAGE (NVG) TAX-FREE ADVANTAGE (NEA) ---------------------- ------------------------ ------------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED 10/31/09 10/31/08 10/31/09 10/31/08 10/31/09 10/31/08 ------------------------------------------------------------------------------------------------------------------------------------ Common shares: Issued in the Reorganization -- -- -- -- 3,728,205** -- Issued to shareholders due to reinvestment of distributions -- -- -- -- -- 2,432 Repurchased -- -- (10,400) -- (19,300) -- ------------------------------------------------------------------------------------------------------------------------------------ -- -- (10,400) -- 3,708,905 2,432 ==================================================================================================================================== Weighted average Common share: Price per share repurchased -- -- $ 11.53 -- $ 10.98 -- Discount per share repurchased -- -- 16.82% -- 18.03% -- ====================================================================================================================================
* Common shares issued in the Reorganization of Florida Premium Income (NFL). ** Common shares issued in the Reorganization of Insured Florida Tax-Free Advantage (NWF). 98 Nuveen Investments Preferred Shares Transactions in Auction Rate Preferred shares were as follows:
INSURED QUALITY (NQI) INSURED OPPORTUNITY (NIO) ---------------------------------------------- ---------------------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 10/31/09 10/31/08 10/31/09 10/31/08 ----------------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------------------------------------------------------------------------------------------------------------------------------------ Auction Rate Preferred shares issued in the Reorganization: Series W3 -- $ -- -- $ -- 1,510* $ 37,750,000* -- $ -- Series TH3 -- -- -- -- 2,577* 64,425,000* -- -- ------------------------------------------------------------------------------------------------------------------------------------ -- -- -- -- 4,087 102,175,000 -- -- ------------------------------------------------------------------------------------------------------------------------------------ Auction Rate Preferred shares redeemed/and or noticed for redemption: Series M (431) (10,775,000) (160) (4,000,000) (294) (7,350,000) (334) (8,350,000) Series T (430) (10,750,000) (160) (4,000,000) (294) (7,350,000) (334) (8,350,000) Series W (429) (10,725,000) (160) (4,000,000) (294) (7,350,000) (333) (8,325,000) Series W2 -- -- -- -- (236) (5,900,000) (266) (6,650,000) Series TH (383) (9,575,000) (143) (3,575,000) (295) (7,375,000) (333) (8,325,000) Series TH2 -- -- -- -- (294) (7,350,000) (332) (8,300,000) Series F (430) (10,750,000) (160) (4,000,000) (295) (7,375,000) (334) (8,350,000) ------------------------------------------------------------------------------------------------------------------------------------ (2,103) (52,575,000) (783) (19,575,000) (2,002) (50,050,000) (2,266) (56,650,000) ------------------------------------------------------------------------------------------------------------------------------------ Total (2,103) $ (52,575,000) (783) $ (19,575,000) 2,085 $ 52,125,000 (2,266) $ (56,650,000) ====================================================================================================================================
PREMIER INSURED INCOME (NIF) INSURED PREMIUM INCOME 2 (NPX) ---------------------------------------------- ---------------------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 10/31/09 10/31/08 10/31/09 10/31/08 ----------------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------------------------------------------------------------------------------------------------------------------------------------ Auction Rate Preferred shares redeemed/and or noticed for redemption: Series M -- $ -- -- $ -- N/A N/A (2,080) $ (52,000,000) Series T -- -- -- -- N/A N/A (2,200) (55,000,000) Series W (130) (3,250,000) (32) (800,000) N/A N/A (2,080) (52,000,000) Series TH (432) (10,800,000) (105) (2,625,000) N/A N/A (2,200) (55,000,000) Series F (431) (10,775,000) (105) (2,625,000) N/A N/A (2,196) (54,900,000) ------------------------------------------------------------------------------------------------------------------------------------ Total (993) $ (24,825,000) (242) $ (6,050,000) (10,756) $(268,900,000) ====================================================================================================================================
INSURED DIVIDEND ADVANTAGE (NVG) INSURED TAX-FREE ADVANTAGE (NEA) ---------------------------------------------- ------------------------------------------------ YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 10/31/09 10/31/08 10/31/09 10/31/08 ------------------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------------------------------------------------------------------------------------------------------------------------------------ Auction Rate Preferred shares issued in the Reorganization Series W2 -- $ -- -- $ -- 1,070** $ 26,750,000** -- $ -- ------------------------------------------------------------------------------------------------------------------------------------ Auction Rate Preferred shares redeemed/and or noticed for redemption: Series M (1,832) (45,800,000) (81) (2,025,000) -- -- -- -- Series T (1,783) (44,575,000) (80) (2,000,000) (216) (5,400,000) (224) (5,600,000) Series W -- -- -- -- (216) (5,400,000) (224) (5,600,000) Series TH (1,786) (44,650,000) (80) (2,000,000) -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ (5,401) (135,025,000) (241) (6,025,000) (432) (10,800,000) (448) (11,200,000) ------------------------------------------------------------------------------------------------------------------------------------ Total (5,401) $(135,025,000) (241) $ (6,025,000) 638 $ 15,950,000 (448) $ (11,200,000) ====================================================================================================================================
* Preferred shares issued in the Reorganization of Insured Florida Premium Income (NFL). Prior to the Reorganization, Insured Florida Premium Income (NFL) redeemed 130 and 233 Series W and TH shares, respectively, in the amounts of $3,250,000 and $5,575,000, respectively. ** Preferred shares issued in the Reorganization of Insured Florida Tax-Free Advantage (NWF). Prior to the Reorganization, Insured Florida Tax-Free Advantage (NWF) redeemed 90 Series W shares in the amount of $2,250,000. N/A - Insured Premium Income 2 (NPX) redeemed all $268,900,000 of its Auctioned Rate Preferred shares during the fiscal year ended October 31, 2008. Nuveen Investments 99 | Notes to | Financial Statements (continued) Transactions in MuniFund Term Preferred shares were as follows:
INSURED DIVIDEND ADVANTAGE (NVG) ----------------------------------------------------------- YEAR ENDED YEAR ENDED 10/31/09 10/31/08 ----------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT --------------------------------------------------------------------------------------------------------------- MuniFund Term Preferred shares issued: Series 2014 10,800,000 $ 108,000,000 N/A N/A ===============================================================================================================
N/A - The Fund was not authorized to issue MuniFund Term Preferred shares prior to October 14, 2009. Transactions in Variable Rate Demand Preferred shares were as follows:
INSURED PREMIUM INCOME 2 (NPX) ------------------------------------------------------------- YEAR ENDED YEAR ENDED 10/31/09 10/31/08 ------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT ----------------------------------------------------------------------------------------------------------------- Variable Rate Demand Preferred shares issued: Series 1 -- $ -- 2,190 $ 219,000,000 =================================================================================================================
5. INVESTMENT TRANSACTIONS Purchases and sales (including maturities but excluding short-term investments and derivative transactions) during the fiscal year ended October 31, 2009, 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 $ 33,494,698 $ 149,227,193 $ 7,827,269 $ 51,097,265 $ 54,939,494 $ 26,001,259 Sales and maturities 49,494,596 134,298,263 27,451,051 56,234,011 54,839,751 23,507,929 =================================================================================================================================
6. 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 securities reflected as financing transactions, if any. 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 October 31, 2009, 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 $ 766,717,007 $ 1,969,110,378 $ 388,417,286 $694,108,005 $ 617,566,695 $ 452,725,429 ====================================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments at October 31, 2009, 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 $ 30,169,463 $ 89,085,758 $ 19,069,676 $ 25,113,399 $ 36,832,979 $ 21,214,101 Depreciation (43,683,038) (63,734,040) (10,220,324) (28,391,535) (24,752,533) (11,633,338) ------------------------------------------------------------------------------------------------------------------------------------ Net unrealized appreciation (depreciation) of investments $ (13,513,575) $ 25,351,718 $ 8,849,352 $ (3,278,136) $ 12,080,446 $ 9,580,763 ====================================================================================================================================
100 Nuveen Investments The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at October 31, 2009, the Funds' 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 * $ 7,130,915 $ 19,121,578 $ 4,578,949 $ 5,048,068 $ 6,280,025 $ 4,510,076 Undistributed net ordinary income ** 746 -- 96 157 -- 54 Undistributed net long-term capital gains -- -- -- -- 1,311,770 -- ====================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on October 1, 2009, paid on November 2, 2009. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. The tax character of distributions paid during the Funds' tax years ended October 31, 2009 and October 31, 2008, 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 2009 (NQI) (NIO) (NIF) (NPX) (NVG) (NEA) ------------------------------------------------------------------------------------------------------------------------------------ Distributions from net tax-exempt income*** $ 30,908,983 $ 61,377,271 $ 15,125,146 $ 26,240,993 $ 24,084,927 $ 14,021,812 Distributions from net ordinary income ** -- 118,143 -- -- -- -- Distributions from net long-term capital gains**** -- -- -- -- -- -- ====================================================================================================================================
PREMIER INSURED INSURED INSURED INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE 2008 (NQI) (NIO) (NIF) (NPX) (NVG) (NEA) ------------------------------------------------------------------------------------------------------------------------------------ Distributions from net tax-exempt income $ 39,541,469 $ 81,436,577 $ 18,358,222 $ 32,147,770 $ 29,301,122 $ 18,112,355 Distributions from net ordinary income ** -- 4,243 -- 290,759 -- 49,701 Distributions from net long-term capital gains -- 211,271 -- -- -- -- ====================================================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. *** The Funds hereby designate these amounts paid during the fiscal year ended October 31, 2009, as Exempt Interest Dividends. **** The Funds designated as a long-term capital gain dividend, pursuant to the Internal Revenue Code Section 852(b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended October 31, 2009. At October 31, 2009, the Funds' 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:
PREMIER INSURED INSURED INSURED INSURED INSURED PREMIUM TAX-FREE QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE (NQI) (NIO)* (NIF) (NPX) (NEA)* ---------------------------------------------------------------------------------------------------------------------- Expiration: October 31, 2010 $ -- $ -- $ -- $ -- $ 772,428 October 31, 2011 -- -- -- -- 97,429 October 31, 2012 -- -- -- -- 236,625 October 31, 2013 -- -- -- -- 4,418,633 October 31, 2014 731,585 -- -- -- -- October 31, 2015 -- 1,075,228 52,137 -- 174,026 October 31, 2016 3,901,375 7,511,676 2,437,248 6,922,132 1,917,479 October 31, 2017 217,917 -- -- 456,587 -- ---------------------------------------------------------------------------------------------------------------------- Total $ 4,850,877 $ 8,586,904 $ 2,489,385 $ 7,378,719 $ 7,616,620 ======================================================================================================================
* A portion of Insured Opportunity's (NIO) and Insured Tax-Free Advantage's (NEA) capital loss carryforward is subject to an annual limitation under the Internal Revenue Code and related regulations. Nuveen Investments 101 | Notes to | Financial Statements (continued) 7. 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 of each Fund as follows: INSURED QUALITY (NQI) INSURED OPPORTUNITY (NIO) PREMIER INSURED INCOME (NIF) INSURED PREMIUM INCOME 2 (NPX) AVERAGE DAILY NET ASSETS (1) 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 (1) 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 net assets managed as stated in the following table. As of October 31, 2009, the complex-level fee rate was .1907%. The complex-level fee schedule is as follows: EFFECTIVE RATE AT COMPLEX-LEVEL NET ASSET BREAKPOINT LEVEL (1) 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 daily managed net assets of all Nuveen funds, with such daily managed net assets defined separately for each fund in its management agreement, but excluding assets attributable to investments in other Nuveen funds. For the complex-level and fund-level fee components, daily managed net assets include assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes the funds use of preferred stock and borrowings and investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by the TOB trust that has been effectively financed by the trust's issuance of floating rate securities, subject to an agreement by the Adviser to limit the amount of such assets for determining managed net assets in certain circumstances. 102 Nuveen Investments 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, 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, 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. 8. NEW ACCOUNTING STANDARDS Accounting for Transfers of Financial Assets During June 2009, the FASB issued changes to the authoritative guidance under GAAP on accounting for transfers of financial assets. The objective of this guidance is to improve the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and a transferor's continuing involvement, if any, in transferred financial assets. This guidance is effective as of the beginning of each reporting entity's first annual reporting period that begins after November 15, 2009, for interim periods within that first annual reporting period and for interim and annual reporting periods thereafter. Earlier application is prohibited. The recognition and measurement provisions of this guidance must be applied to transfers occurring on or after the effective date. Additionally, the disclosure provisions of this guidance should be applied to transfers that occurred both before and after the effective date of this guidance. At this time, management is evaluating the implications of this guidance and the impact it will have on the financial statement amounts and disclosures, if any. 9. SUBSEQUENT EVENTS Distributions to Common Shareholders The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on December 1, 2009, to shareholders of record on November 15, 2009, 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 $ .0680 $ .0665 $ .0660 $ .0610 $ .0700 $ .0650 ====================================================================================================================================
Nuveen Investments 103 | Notes to | Financial Statements (continued) Distributions to MuniFund Term Preferred Shareholders Insured Dividend Advantage (NVG) declared its initial dividend distribution of $0.34417 which was paid on December 1, 2009, to shareholders of record on November 15, 2009. MuniFund Term Preferred Shares Subsequent to the reporting period, Insured Tax-Free Advantage (NEA) filed with the Securities and Exchange Commission (SEC) a registration statement seeking to register MuniFund Term Preferred shares. This registration statement declared effective by the SEC, enables the Fund to issue to the public shares of MuniFund Term Preferred to refinance all or a portion of Insured Tax-Free Advantage's (NEA) auction rate preferred shares. The issuance of MuniFund Term Preferred shares by Insured Tax-Free Advantage (NEA) is subject to market conditions. There is no assurance that MuniFund Term Preferred shares will be issued. Evaluation Date In May 2009, the FASB issued changes to authoritative guidance under GAAP for subsequent events. This guidance requires an entity to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the balance sheet. This guidance is intended to establish general standards of accounting and for disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. This guidance requires the disclosure of the date through which an entity has evaluated subsequent events and the basis for that date - that is, whether that date represents the date the financial statements were issued or were available to be issued. This guidance is effective for interim and annual periods ending after June 15, 2009. The Funds have performed an evaluation of subsequent events through December 28, 2009, which is the date the financial statements were issued. 104 Nuveen Investments | Financial | Highlights Nuveen Investments 105 | Financial | Highlights 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/ AUCTION RATE AUCTION RATE NET ASSET INVESTMENT UNREALIZED PREFERRED PREFERRED VALUE INCOME GAIN (LOSS) SHAREHOLDERS+ SHAREHOLDERS+ TOTAL ------------------------------------------------------------------------------------------------------------------------------------ INSURED QUALITY (NQI) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 $ 11.68 $ .99 $ 1.76 $ (.06) $ -- $ 2.69 2008 14.88 .99 (3.16) (.30) -- (2.47) 2007 15.40 .99 (.49) (.29) -- .21 2006 15.31 .99 .24 (.25) (.01) .97 2005 15.85 1.03 (.39) (.16) -- .48 INSURED OPPORTUNITY (NIO) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 12.39 .96 1.66 (.06) -- 2.56 2008 15.04 .97 (2.62) (.30) --*** (1.95) 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 ====================================================================================================================================
LESS DISTRIBUTIONS -------------------------------------------------------------------------------------- NET INVESTMENT CAPITAL ENDING INCOME TO GAINS TO COMMON COMMON COMMON SHARE ENDING SHARE- SHARE- NET ASSET MARKET HOLDERS HOLDERS TOTAL VALUE VALUE ------------------------------------------------------------------------------------------------------------------ INSURED QUALITY (NQI) ------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 $ (.76) $ -- $ (.76) $ 13.61 $ 13.30 2008 (.73) -- (.73) 11.68 11.15 2007 (.73) -- (.73) 14.88 13.61 2006 (.80) (.08) (.88) 15.40 14.83 2005 (.97) (.05) (1.02) 15.31 15.31 INSURED OPPORTUNITY (NIO) ------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 (.73) -- (.73) 14.22 12.98 2008 (.70) --*** (.70) 12.39 11.15 2007 (.73) (.02) (.75) 15.04 13.56 2006 (.80) (.14) (.94) 15.57 14.75 2005 (.92) (.03) (.95) 15.46 14.52 ==================================================================================================================
AUCTION RATE PREFERRED SHARES AT END OF PERIOD -------------------------------------------------- AGGREGATE LIQUIDATION AMOUNT AND MARKET ASSET OUTSTANDING VALUE COVERAGE (000) PER SHARE PER SHARE ------------------------------------------------------------------------------ INSURED QUALITY (NQI) ------------------------------------------------------------------------------ Year Ended 10/31: 2009 $ 245,850 $ 25,000 $ 78,001 2008 298,425 25,000 62,485 2007 318,000 25,000 69,808 2006 318,000 25,000 71,378 2005 318,000 25,000 71,052 INSURED OPPORTUNITY (NIO) ------------------------------------------------------------------------------ Year Ended 10/31: 2009 675,475 25,000 75,292 2008 623,350 25,000 65,315 2007 680,000 25,000 69,864 2006 680,000 25,000 71,440 2005 680,000 25,000 71,126 ============================================================================== 106 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE REIMBURSEMENT ------------------------------- --------------------------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++ INCOME++ ------------------------------------------------------------------------------------------------------------------------------------ INSURED QUALITY (NQI) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 26.98% 23.65% $ 521,216 1.32% 1.21% 7.86% 2008 (13.35) (17.24) 447,463 1.49 1.23 7.03 2007 (3.48) 1.38 569,958 1.52 1.18 6.53 2006 2.76 6.53**** 589,928 1.20 1.20 6.49 2005 2.11 3.09 585,777 1.19 1.19 6.58 INSURED OPPORTUNITY (NIO) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 23.62 21.18 1,358,844 1.29 1.18 7.36 2008 (13.17) (13.45) 1,005,218 1.43 1.19 6.76 2007 (3.18) 1.49 1,220,297 1.41 1.16 6.39 2006 8.26 7.05**** 1,263,172 1.17 1.17 6.38 2005 (3.72) 2.21 1,254,638 1.16 1.16 6.35 ====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER REIMBURSEMENT** -------------------------------------------------------------------- EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST++(a) INTEREST++ INCOME++ RATE ------------------------------------------------------------------------------------------------ INSURED QUALITY (NQI) ------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 1.32% 1.21% 7.86% 4% 2008 1.49 1.23 7.03 7 2007 1.52 1.18 6.53 5 2006 1.20 1.20 6.49 13 2005 1.19 1.19 6.58 21 INSURED OPPORTUNITY (NIO) ------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 1.29 1.18 7.36 8 2008 1.43 1.19 6.76 9 2007 1.41 1.16 6.39 5 2006 1.17 1.17 6.38 13 2005 1.16 1.16 6.35 25 ================================================================================================
* Total Return Based 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 Based 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 expense reimbursement from Adviser, where applicable. Expense ratios do not reflect the reduction of custodian fee credits earned on the Fund's net cash on deposit with the custodian bank, where applicable. *** Rounds to less than $.01 per share. **** 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. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Auction Rate Preferred shares. (a) The expense ratios in the above table reflect, among other things, the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, as described in Footnote 1 - Inverse Floating Rate Securities. See accompanying notes to financial statements. Nuveen Investments 107 | Financial | Highlights (continued) 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/ AUCTION RATE AUCTION RATE NET ASSET INVESTMENT UNREALIZED PREFERRED PREFERRED VALUE INCOME GAIN (LOSS) SHAREHOLDERS+ SHAREHOLDERS+ TOTAL ------------------------------------------------------------------------------------------------------------------------------------ PREMIER INSURED INCOME (NIF) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 $ 12.54 $ .99 $ 1.64 $ (.06) $ -- $ 2.57 2008 14.90 .96 (2.37) (.31) -- (1.72) 2007 15.40 .97 (.47) (.29) -- .21 2006 15.33 .98 .25 (.25) (.02) .96 2005 16.00 1.01 (.49) (.16) (.01) .35 INSURED PREMIUM INCOME 2 (NPX) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 11.39 .80 1.44 -- -- 2.24 2008 13.73 .80 (2.32) (.20) -- (1.72) 2007 14.16 .86 (.39) (.26) -- .21 2006 13.93 .86 .28 (.23) -- .91 2005 14.45 .89 (.44) (.14) -- .31 ====================================================================================================================================
LESS DISTRIBUTIONS --------------------------------------------------- NET INVESTMENT CAPITAL ENDING INCOME TO GAINS TO COMMON COMMON COMMON SHARE ENDING SHARE- SHARE- NET ASSET MARKET HOLDERS HOLDERS TOTAL VALUE VALUE ------------------------------------------------------------------------------------------------------------------ PREMIER INSURED INCOME (NIF) ------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 $ (.73) $ -- $ (.73) $ 14.38 $ 13.10 2008 (.64) -- (.64) 12.54 11.19 2007 (.71) -- (.71) 14.90 13.25 2006 (.79) (.10) (.89) 15.40 14.60 2005 (.93) (.09) (1.02) 15.33 14.40 INSURED PREMIUM INCOME 2 (NPX) ------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 (.67) -- (.67) 12.96 11.86 2008 (.62) -- (.62) 11.39 9.56 2007 (.64) -- (.64) 13.73 12.18 2006 (.68) -- (.68) 14.16 13.03 2005 (.83) -- (.83) 13.93 12.83 ==================================================================================================================
AUCTION RATE PREFERRED SHARES VARIABLE RATE DEMAND PREFERRED SHARES AT END OF PERIOD AT END OF PERIOD ------------------------------------------------- --------------------------------------------------- AGGREGATE LIQUIDATION AGGREGATE LIQUIDATION AMOUNT AND MARKET ASSET AMOUNT AND MARKET ASSET OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE COVERAGE (000) PER SHARE PER SHARE (000) PER SHARE PER SHARE ------------------------------------------------------------------------------------------------------------------------------------ PREMIER INSURED INCOME (NIF) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 $ 130,125 $ 25,000 $ 78,662 $ -- $ -- $ -- 2008 154,950 25,000 64,301 -- -- -- 2007 161,000 25,000 69,938 -- -- -- 2006 161,000 25,000 71,429 -- -- -- 2005 161,000 25,000 71,215 -- -- -- INSURED PREMIUM INCOME 2 (NPX) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 -- -- -- 219,000 100,000 321,036 2008 -- -- -- 219,000 100,000 294,318 2007 268,900 25,000 72,696 -- -- -- 2006 268,900 25,000 74,180 -- -- -- 2005 268,900 25,000 73,392 -- -- -- ====================================================================================================================================
108 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE REIMBURSEMENT ------------------------------- --------------------------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++ INCOME++ ------------------------------------------------------------------------------------------------------------------------------------ PREMIER INSURED INCOME (NIF) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 24.07% 20.90% $ 279,312 1.30% 1.23% 7.25% 2008 (11.12) (11.92) 243,589 1.42 1.25 6.72 2007 (4.66) 1.40 289,400 1.38 1.21 6.41 2006 7.68 6.46 299,001 1.22 1.22 6.44 2005 (1.66) 2.16 297,624 1.20 1.20 6.39 INSURED PREMIUM INCOME 2 (NPX) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 31.78 20.15 484,069 1.98 1.47 6.56 2008 (17.17) (12.98) 425,557 2.13 1.25 6.12 2007 (1.77) 1.55 513,021 1.76 1.16 6.19 2006 7.11 6.75 528,984 1.16 1.16 6.14 2005 (3.32) 2.14 520,508 1.16 1.16 6.20 ====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER REIMBURSEMENT** ---------------------------------------------------- EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST++(a) INTEREST++ INCOME++ RATE ------------------------------------------------------------------------------------------------ PREMIER INSURED INCOME (NIF) ------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 1.30% 1.23% 7.25% 2% 2008 1.42 1.25 6.72 6 2007 1.38 1.21 6.41 9 2006 1.22 1.22 6.44 8 2005 1.20 1.20 6.39 20 INSURED PREMIUM INCOME 2 (NPX) ------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 1.98 1.47 6.56 7 2008 2.13 1.25 6.12 8 2007 1.76 1.16 6.19 5 2006 1.16 1.16 6.14 15 2005 1.16 1.16 6.20 23 ================================================================================================
* Total Return Based 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 Based 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 expense reimbursement from Adviser, where applicable. Expense ratios do not reflect the reduction of custodian fee credits earned on the Fund's net cash on deposit with the custodian bank, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Auction Rate Preferred shares and/or Variable Rate Demand Preferred shares, where applicable. (a) The expense ratios in the above table reflect, among other things, payments to Variable Rate Demand Preferred shareholders and the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, as described in Footnote 1 - Variable Rate Demand Preferred Shares and Inverse Floating Rate Securities, respectively. See accompanying notes to financial statements. Nuveen Investments 109 | Financial | Highlights (continued) 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/ AUCTION RATE AUCTION RATE NET ASSET INVESTMENT UNREALIZED PREFERRED PREFERRED VALUE INCOME GAIN (LOSS) SHAREHOLDERS+ SHAREHOLDERS+ TOTAL ------------------------------------------------------------------------------------------------------------------------------------ INSURED DIVIDEND ADVANTAGE (NVG) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 $ 12.85 $ 1.00 $ 1.77 $ (.06) $ -- $ 2.71 2008 15.09 1.00 (2.25) (.29) -- (1.54) 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 INSURED TAX-FREE ADVANTAGE (NEA) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 12.37 .98 1.86 (.06) -- 2.78 2008 14.71 .95 (2.31) (.27) -- (1.63) 2007 14.93 .97 (.21) (.27) -- .49 2006 14.56 .97 .38 (.24) -- 1.11 2005 14.75 .97 (.19) (.15) -- .63 ====================================================================================================================================
LESS DISTRIBUTIONS ---------------------------------------------------- NET INVESTMENT CAPITAL ENDING INCOME TO GAINS TO COMMON COMMON COMMON SHARE ENDING SHARE- SHARE- NET ASSET MARKET HOLDERS HOLDERS TOTAL VALUE VALUE ------------------------------------------------------------------------------------------------------------------ INSURED DIVIDEND ADVANTAGE (NVG) ------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 $ (.76) $ -- $ (.76) $ 14.80 $ 13.85 2008 (.70) -- (.70) 12.85 11.42 2007 (.75) -- (.75) 15.09 13.71 2006 (.82) -- (.82) 15.50 14.89 2005 (.89) (.12) (1.01) 15.23 14.17 INSURED TAX-FREE ADVANTAGE (NEA) ------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 (.73) -- (.73) 14.42 13.48 2008 (.71) -- (.71) 12.37 11.40 2007 (.71) -- (.71) 14.71 14.30 2006 (.74) -- (.74) 14.93 14.35 2005 (.81) (.01) (.82) 14.56 13.41 ==================================================================================================================
AUCTION RATE PREFERRED SHARES MUNIFUND TERM PREFERRED SHARES AT END OF PERIOD AT END OF PERIOD ------------------------------- --------------------------------------------------- AGGREGATE LIQUIDATION AGGREGATE LIQUIDATION AMOUNT AND MARKET AMOUNT AND MARKET ASSET OUTSTANDING VALUE OUTSTANDING VALUE COVERAGE (000) PER SHARE (000) PER SHARE PER SHARE ---------------------------------------------------------------------------------------------------------------------- INSURED DIVIDEND ADVANTAGE (NVG) ---------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 $ 91,950 $ 25,000 $ 108,000 $ 10*** --**** 2008 226,975 25,000 -- -- $ 67,189 2007 233,000 25,000 -- -- 73,281 2006 233,000 25,000 -- -- 74,575 2005 233,000 25,000 -- -- 73,714 INSURED TAX-FREE ADVANTAGE (NEA) ---------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2009 148,750 25,000 -- -- 78,880 2008 132,800 25,000 -- -- 68,124 2007 144,000 25,000 -- -- 72,290 2006 144,000 25,000 -- -- 73,005 2005 144,000 25,000 -- -- 71,808 ======================================================================================================================
110 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE REIMBURSEMENT ------------------------------- --------------------------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++ INCOME++ ------------------------------------------------------------------------------------------------------------------------------------ INSURED DIVIDEND ADVANTAGE (NVG) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 28.72% 21.54% $ 441,207 1.25% 1.17% 6.86% 2008 (12.11) (10.64) 383,035 1.32 1.17 6.48 2007 (3.12) 2.25 449,982 1.31 1.14 6.15 2006 11.09 7.39 462,037 1.15 1.15 6.15 2005 2.00 2.93 454,018 1.15 1.15 5.96 INSURED TAX-FREE ADVANTAGE (NEA) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 25.41 23.05 320,587 1.24 1.19 7.14 2008 (15.97) (11.56) 229,075 1.26 1.19 6.27 2007 4.59 3.35 272,391 1.19 1.17 6.04 2006 12.82 7.82 276,506 1.19 1.19 6.12 2005 (4.68) 4.33 269,614 1.19 1.19 6.06 ====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER REIMBURSEMENT** ---------------------------------------------------- EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST++(a) INTEREST++ INCOME++ RATE ------------------------------------------------------------------------------------------------ INSURED DIVIDEND ADVANTAGE (NVG) ------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 .98% .91% 7.12% 9% 2008 .98 .83 6.82 7 2007 .90 .73 6.56 12 2006 .70 .70 6.60 15 2005 .70 .70 6.42 2 INSURED TAX-FREE ADVANTAGE (NEA) ------------------------------------------------------------------------------------------------ Year Ended 10/31: 2009 .99 .94 7.39 6 2008 .87 .81 6.66 8 2007 .70 .68 6.53 6 2006 .69 .69 6.61 -- 2005 .70 .70 6.55 1 ================================================================================================
* Total Return Based 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 Based 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 expense reimbursement from Adviser, where applicable. Expense ratios do not reflect the reduction of custodian fee credits earned on the Fund's net cash on deposit with the custodian bank, where applicable. *** For the period October 19, 2009 through October 31, 2009, the average market value was $10.03. **** Asset coverage per $1 of liquidation preference for Auction Rate Preferred shares and MuniFund Term Preferred shares equaled $3.21. On a per share basis, asset coverage is $80,165 and $32 for Auction Rate Preferred shares and MuniFund Term Preferred shares, respectively. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Auction Rate Preferred shares and/or MuniFund Term Preferred shares, where applicable. (a) The expense ratios in the above table reflect, among other things, payments to MuniFund Term Preferred shareholders and the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, as described in Footnote 1 - MuniFund Term Preferred Shares and Inverse Floating Rate Securities, respectively. See accompanying notes to financial statements. Nuveen Investments 111 Board Members & Officers The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board Members of the Funds. The number of board members of the Fund is currently set at nine. None of the board members who are not "interested" persons of the Funds (referred to herein as "independent board members") has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the board members and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
NUMBER PRINCIPAL YEAR FIRST OF PORTFOLIOS OCCUPATION(S) NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS & ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT BOARD MEMBERS: o ROBERT P. BREMNER Private Investor and Management Consultant; 8/22/40 Chairman of Treasurer and Director, Humanities Council 333 W. Wacker Drive the Board 1997 198 of Washington D.C. Chicago, IL 60606 and Board Member o JACK B. EVANS President, The Hall-Perrine Foundation, a 10/22/48 private philanthropic corporation (since 333 W. Wacker Drive Board Member 1999 198 1996); Director and Chairman, United Fire Chicago, IL 60606 Group, a publicly held company; President Pro Tem of the Board of Regents for the State of Iowa University System; Director, Gazette Companies; Life Trustee of Coe College and the Iowa College Foundation; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. o WILLIAM C. HUNTER Dean, Tippie College of Business, 3/6/48 University of Iowa (since 2006); Director 333 W. Wacker Drive Board Member 2004 198 (since 2004) of Xerox Corporation; Director Chicago, IL 60606 (since 2005), Beta Gamma Sigma International Honor Society; formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); Director, SS&C Technologies, Inc. (May 2005-October 2005); formerly, Director (1997-2007), Credit Research Center at Georgetown University. o DAVID J. KUNDERT Director, Northwestern Mutual Wealth 10/28/42 Management Company; retired (since 2004) as 333 W. Wacker Drive Board Member 2005 198 Chairman, JPMorgan Fleming Asset Chicago, IL 60606 Management, President and CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Member, Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Investment Committee, Greater Milwaukee Foundation. o WILLIAM J. SCHNEIDER Chairman of Miller-Valentine Partners Ltd., 9/24/44 a real estate investment company; formerly, 333 W. Wacker Drive Board Member 1997 198 Senior Partner and Chief Operating Officer Chicago, IL 60606 (retired, 2004) of Miller-Valentine Group; member, University of Dayton Business School Advisory Council; member, Dayton Philharmonic Orchestra Association; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank; formerly, Director, Dayton Development Coalition.
112 Nuveen Investments
NUMBER PRINCIPAL YEAR FIRST OF PORTFOLIOS OCCUPATION(S) NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS & ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT BOARD MEMBERS: o JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy 12/29/47 Donnelley Foundation (since 1994); prior 333 W. Wacker Drive Board Member 1997 198 thereto, Executive Director, Great Lakes Chicago, IL 60606 Protection Fund (from 1990 to 1994). o CAROLE E. STONE Director, Chicago Board Options Exchange 6/28/47 (since 2006); Director, C2 Options 333 W. Wacker Drive Board Member 2007 198 Exchange, Incorporated (since 2009); Chicago, IL 60606 Commissioner, New York State Commission on Public Authority Reform (since 2005); formerly, Chair, New York Racing Association Oversight Board (2005-2007). o TERENCE J. TOTH Director, Legal & General Investment 9/29/59 Management America, Inc. (since 2008); 333 W. Wacker Drive Board Member 2008 198 Managing Partner, Musso Capital Management Chicago, IL 60606 (since 2008); formerly, CEO and President, Northern Trust Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2004-2007); prior thereto, various positions with Northern Trust Company (since 1994); Member: Goodman Theatre Board (since 2004), Chicago Fellowship Boards (since 2005), University of Illinois Leadership Council Board (since 2007) and Catalyst Schools of Chicago Board (since 2008); formerly, Member: Northern Trust Mutual Funds Board (2005-2007), Northern Trust Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004). INTERESTED BOARD MEMBER: o JOHN P. AMBOIAN(2) Chief Executive Officer (since July 2007) 6/14/61 and Director (since 1999) of Nuveen 333 W. Wacker Drive Board Member 2008 198 Investments, Inc.; Chief Executive Officer Chicago, IL 60606 (since 2007) of Nuveen Asset Management, Nuveen Investments Advisors, Inc. formerly, President (1999-2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3)
Nuveen Investments 113 Board Members & Officers (continued)
NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S) AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: o GIFFORD R. ZIMMERMAN Managing Director (since 2002), Assistant 9/9/56 Chief Secretary and Associate General Counsel of 333 W. Wacker Drive Administrative 1988 198 Nuveen Investments, LLC; Managing Director, Chicago, IL 60606 Officer Associate General Counsel and Assistant Secretary, of Nuveen Asset Management (since 2002) and of Symphony Asset Management LLC, (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC. (since 2002), Nuveen Investments Advisers Inc. (since 2002), Tradewinds Global Investors, LLC, and Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group LLC and Nuveen Investment Solutions, Inc. (since 2007); Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; formerly, Managing Director (2002-2004), General Counsel (1998-2004) and Assistant Secretary of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3); Chartered Financial Analyst. o WILLIAM ADAMS IV Executive Vice President of Nuveen 6/9/55 Investments, Inc.; Executive Vice 333 W. Wacker Drive Vice President 2007 123 President, U.S. Structured Products of Chicago, IL 60606 Nuveen Investments, LLC, (since 1999), prior thereto, Managing Director of Structured Investments. o MARK J.P. ANSON President and Executive Director of Nuveen 6/10/59 Investments, Inc. (since 2007); President 333 W. Wacker Drive Vice President 2009 198 of Nuveen Investments Institutional Chicago, IL 60606 Services Group LLC (since 2007); previously, Chief Executive Officer of the British Telecom Pension Scheme (2006-2007) and Chief Investment Officer of Calpers (1999-2006); PhD, Chartered Financial Analyst, Chartered Alternative Investment Analyst, Certified Public Accountant, Certified Management Accountant and Certified Internal Auditor. o CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004), 1/11/62 previously, Vice President (1993-2004) of 333 W. Wacker Drive Vice President 2007 123 Nuveen Investments, LLC. Chicago, IL 60606 o NIZIDA ARRIAGA Vice President (since 2007) of Nuveen 6/1/68 Investments, LLC; previously, Portfolio 333 W. Wacker Drive Vice President 2009 198 Manager, Allstate Investments, LLC Chicago, IL 60606 (1996-2006); Chartered Financial Analyst. o MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen 2/3/66 Vice President Investments, LLC.; Vice President of Nuveen 333 W. Wacker Drive and Assistant 2000 198 Asset Management (since 2005). Chicago, IL 60606 Secretary o MARGO L. COOK Executive Vice President (since Oct 2008) 4/11/64 of Nuveen Investments, Inc.; previously, 333 W. Wacker Drive Vice President 2009 198 Head of Institutional Asset Management Chicago, IL 60606 (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Mgt (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. o LORNA C. FERGUSON Managing Director (since 2004) of Nuveen 10/24/45 Investments, LLC; Managing Director (since 333 W. Wacker Drive Vice President 1998 198 2005) of Nuveen Asset Management; Managing Chicago, IL 60606 Director (2004-2005), of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3)
114 Nuveen Investments
NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S) AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: o STEPHEN D. FOY Vice President (since 1993) and Funds 5/31/54 Vice President Controller (since 1998) of Nuveen 333 W. Wacker Drive and Controller 1998 198 Investments, LLC; Vice President (since Chicago, IL 60606 2005) of Nuveen Asset Management; Certified Public Accountant. o SCOTT S. GRACE Managing Director, Corporate Finance & 8/20/70 Vice President Development, Treasurer (since September 333 West Wacker Drive and Treasurer 2009 198 2009) of Nuveen Investments, LLC, formerly, Chicago, IL 60606 Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly. Senior Associate in Morgan Stanley's Global Financial Services Group (2000-2003); Chartered Accountant Designation. o WILLIAM T. HUFFMAN Chief Operating Officer, Municipal Fixed 5/7/69 Income (since 2008) of Nuveen Asset 333 W. Wacker Drive Vice President 2009 134 Management; previously, Chairman, President Chicago, IL 60606 and Chief Executive Officer (2002 - 2007) of Northern Trust Global Advisors, Inc. and Chief Executive Officer (2007) of Northern Trust Global Investments Limited; Certified Public Accountant. o WALTER M. KELLY Senior Vice President (since 2008), Vice 2/24/70 Chief Compliance President (2006-2008) formerly, Assistant 333 W. Wacker Drive Officer and 2003 198 Vice President and Assistant General Chicago, IL 60606 Vice President Counsel (2003-2006) of Nuveen Investments, LLC; Vice President (since 2006) and Assistant Secretary (since 2008) of Nuveen Asset Management. o DAVID J. LAMB Senior Vice President (since 2009), 3/22/63 formerly, Vice President (2000-2009) of 333 W. Wacker Drive Vice President 2000 198 Nuveen Investments, LLC; Vice President Chicago, IL 60606 (since 2005) of Nuveen Asset Management; Certified Public Accountant. o TINA M. LAZAR Senior Vice President (since 2009), 8/27/61 formerly, Vice President of Nuveen 333 W. Wacker Drive Vice President 2002 198 Investments, LLC (1999-2009); Vice Chicago, IL 60606 President of Nuveen Asset Management (since 2005). o LARRY W. MARTIN Vice President, Assistant Secretary and 7/27/51 Vice President Assistant General Counsel of Nuveen 333 W. Wacker Drive and Assistant 1988 198 Investments, LLC; Vice President (since Chicago, IL 60606 Secretary 2005) and Assistant Secretary of Nuveen Investments, Inc.; Vice President (since 2005) and Assistant Secretary (since 1997) of Nuveen Asset Management; Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); NWQ Investment Management Company, LLC (since 2002), Symphony Asset Management LLC (since 2003), Tradewinds Global Investors, LLC, Santa Barbara Asset Management LLC (since 2006) and of Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007); formerly, Vice President and Assistant Secretary of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3) o KEVIN J. MCCARTHY Managing Director (since 2008), formerly, 3/26/66 Vice President Vice President (2007-2008), Nuveen 333 W. Wacker Drive and Secretary 2007 198 Investments, LLC; Managing Director (since Chicago, IL 60606 2008), formerly, Vice President, and Assistant Secretary, Nuveen Asset Management, and Nuveen Investments Holdings, Inc.; Vice President (since 2007) and Assistant Secretary, Nuveen Investment Advisers Inc., Nuveen Investment Institutional Services Group LLC, NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, NWQ Holdings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management LLC, Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007); prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997- 2007).
Nuveen Investments 115 Board Members & Officers (continued)
NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S) AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: o JOHN V. MILLER Chief Investment Officer and Managing 4/10/67 Director (since 2007), formerly, Vice 333 W. Wacker Drive Vice President 2007 134 President (2002-2007) of Nuveen Asset Chicago, IL 60606 Management and Managing Director (since 2007), formerly Vice President (2002-2007) Nuveen Investments, LLC; Chartered Financial Analyst. o GREGORY MINO Vice President of Nuveen Investments, LLC 1/4/71 (since 2008); previously, Director 333 W. Wacker Drive Vice President 2009 198 (2004-2007) and Executive Director Chicago, IL 60606 (2007-2008) of UBS Global Asset Management; previously, Vice President (2000-2003) and Director (2003-2004) of Merrill Lynch Investment Managers; Chartered Financial Analyst. o CHRISTOPHER M. ROHRBACHER Vice President, Nuveen Investments, LLC 8/1/71 Vice President (since 2008); Vice President and Assistant 333 W. Wacker Drive and Assistant 2008 198 Secretary, Nuveen Asset Management (since Chicago, IL 60606 Secretary 2008); prior thereto, Associate, Skadden, Arps, Slate Meagher & Flom LLP (2002-2008). o JAMES F. RUANE Vice President, Nuveen Investments, LLC 7/3/62 Vice President (since 2007); prior thereto, Partner, 333 W. Wacker Drive and Assistant 2007 198 Deloitte & Touche USA LLP (2005-2007), Chicago, IL 60606 Secretary formerly, senior tax manager (2002-2005); Certified Public Accountant. o MARK L. WINGET Vice President, Nuveen Investments, LLC 12/21/68 Vice President (since 2008); Vice President and Assistant 333 W. Wacker Drive and Assistant 2008 198 Secretary, Nuveen Asset Management (since Chicago, IL 60606 Secretary 2008); prior thereto, Counsel, Vedder Price P.C. (1997-2007).
(1) For Insured Premium Income 2 (NPX), Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA), Board Members serve three year terms, except for two board members who are elected by the holders of Preferred Shares. The Board of Trustees for NAD, NXZ and NZF is divided into three classes, Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed, except two board members are elected by the holders of Preferred Shares to serve until the next annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. For Insured Quality (NQI), Insured Opportunity (NIO) and Premier Insured Income (NIF), the Board Members serve a one year term to serve until the next annual meeting or until their successors shall have been duly elected and qualified. The first year elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex. (2) Mr. Amboian is an interested trustee because of his position with Nuveen Investments, Inc. and certain of its subsidiaries, which are affiliates of the Nuveen Funds. (3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were reorganized into Nuveen Asset Management, effective January 1, 2005. (4) Officers serve one year terms through July of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex. 116 Nuveen Investments Annual Investment Management Agreement Approval Process The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuance is approved at least annually by the fund's board members, including by a vote of a majority of the board members who are not parties to the advisory agreement or "interested persons" of any parties (the "Independent Board Members"), cast in person at a meeting called for the purpose of considering such approval. In connection with such approvals, the fund's board members must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the advisory agreement. Accordingly, at a meeting held on May 27-29, 2009 (the "May Meeting"), the Boards of Trustees or Directors (as the case may be) (each, a "Board" and each Trustee or Director, a "Board Member") of the Funds, including a majority of the Independent Board Members, considered and approved the continuation of the advisory agreements (each an "Advisory Agreement") between each Fund and Nuveen Asset Management ("NAM") for an additional one-year period. In preparation for their considerations at the May Meeting, the Board also held a separate meeting on April 21-22, 2009 (the "April Meeting"). Accordingly, the factors considered and determinations made regarding the renewals by the Independent Board Members include those made at the April Meeting. In addition, in evaluating the Advisory Agreements, the Independent Board Members reviewed a broad range of information relating to the Funds and NAM, including absolute performance, fee and expense information for the Funds as well as comparative performance, fee and expense information for a comparable peer group of funds, the performance information of recognized and/or customized benchmarks (as applicable) of the Funds, the profitability of Nuveen for its advisory activities (which includes its wholly owned subsidiaries other than Winslow Capital Management, Inc. ("Winslow Capital"), which was recently acquired in December 2008), and other information regarding the organization, personnel, and services provided by NAM. The Independent Board Members also met quarterly as well as at other times as the need arose during the year and took into account the information provided at such meetings and the knowledge gained therefrom. Prior to approving the renewal of the Advisory Agreements, the Independent Board Members reviewed the foregoing information with their independent legal counsel and with management, reviewed materials from independent legal counsel describing applicable law and their duties in reviewing advisory contracts, and met with independent legal counsel in private sessions without management present. The Independent Board Members considered the legal advice provided by independent legal counsel and relied upon their knowledge of NAM, its services and the Funds resulting from their meetings and other interactions throughout the year and their own business judgment in determining the factors to be considered in evaluating Nuveen Investments 117 Annual Investment Management Agreement Approval Process (continued) the Advisory Agreements. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to a Fund's Advisory Agreement. The Independent Board Members did not identify any single factor as all-important or controlling. The Independent Board Members' considerations were instead based on a comprehensive consideration of all the information presented. The principal factors considered by the Board and its conclusions are described below. A. NATURE, EXTENT AND QUALITY OF SERVICES In considering renewal of the Advisory Agreements, the Independent Board Members considered the nature, extent and quality of NAM's services, including advisory services and administrative services. The Independent Board Members reviewed materials outlining, among other things, NAM's organization and business; the types of services that NAM or its affiliates provide and are expected to provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and any initiatives Nuveen had taken for the applicable fund product line. In reviewing the services provided and the initiatives undertaken during the past year, the Independent Board Members recognized the severe market turmoil experienced in the capital markets during recent periods, including sustained periods of high volatility, credit disruption and government intervention. The Independent Board Members considered NAM's efforts, expertise and other actions taken to address matters as they arose that impacted the Funds. The Independent Board Members recognized the role of the Investment Services group which, among other things, monitors the various positions throughout the Nuveen fund complex to identify and address any systematic risks. In addition, the Capital Markets Committee of NAM provides a multi-departmental venue for developing new policies to mitigate any risks. The Independent Board Members further recognized NAM's continuous review of the Nuveen funds' investment strategies and mandates in seeking to continue to refine and improve the investment process for the funds, particularly in light of market conditions. With respect to closed-end funds that issued auction rate preferred shares ("ARPs") or that otherwise utilize leverage, the Independent Board Members noted, in particular, NAM's efforts in refi-nancing the preferred shares of such funds frozen by the collapse of the auction rate market and managing leverage during a period of rapid market declines, particularly for the non-equity funds. Such efforts included negotiating and maintaining the availability of bank loan facilities and other sources of credit used for investment purposes or to satisfy liquidity needs, liquidating portfolio securities during difficult times to meet leverage ratios, and seeking alternative forms of debt and other leverage that may over time reduce financing costs associated with ARPs and enable the funds that have issued ARPs to restore liquidity to ARPs holders. The Independent Board Members also noted Nuveen's continued commitment and efforts to keep investors and financial advisers informed as to its progress with the ARPs through, among other things, conference calls, emails, press releases, information posted on its website, and telephone calls and in-person meetings with financial advisers. In addition to the foregoing, the Independent Board Members also noted the additional services that NAM or its affiliates provide to closed-end funds, including, in particular, Nuveen's continued commitment to supporting the secondary market for the common shares of its closed-end funds 118 Nuveen Investments through a variety of programs designed to raise investor and analyst awareness and understanding of closed-end funds. These efforts include maintaining an investor relations program to provide timely information and education to financial advisers and investors; providing advertising and marketing for the closed-end funds; maintaining websites; and providing educational seminars. As part of their review, the Independent Board Members also evaluated the background, experience and track record of NAM's investment personnel. In this regard, the Independent Board Members considered any changes in the personnel, and the impact on the level of services provided to the Funds, if any. The Independent Board Members also reviewed information regarding portfolio manager compensation arrangements to evaluate NAM's ability to attract and retain high quality investment personnel, preserve stability, and reward performance but not provide an incentive for taking undue risks. In addition to advisory services, the Independent Board Members considered the quality of administrative services provided by NAM and its affiliates including product management, fund administration, oversight of service providers, shareholder services, administration of Board relations, regulatory and portfolio compliance and legal support. Given the importance of compliance, the Independent Board Members considered NAM's compliance program, including the report of the chief compliance officer regarding the Funds' compliance policies and procedures. Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided (and expected to be provided) to the respective Funds under the Advisory Agreements were satisfactory. B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM The Board considered the investment performance of each Fund, including the Fund's historic performance as well as its performance compared to funds with similar investment objectives (the "Performance Peer Group") based on data provided by an independent provider of mutual fund data as well as recognized and/or customized benchmarks (as applicable). The Independent Board Members reviewed performance information including, among other things, total return information compared with the Fund's Performance Peer Group and recognized and/or customized benchmarks (as applicable) for the quarter-, one-, three- and five-year periods (as applicable) ending December 31, 2008 and for the same periods (as applicable) ending March 31, 2009. The Independent Board Members also reviewed performance information of the Nuveen municipal funds managed by NAM in the aggregate ranked by peer group and the performance of such funds, in the aggregate, relative to their benchmark. This information supplemented the Fund performance information provided to the Board at each of its quarterly meetings. In comparing a fund's performance with that of its Performance Peer Group, the Independent Board Members took into account that the closest Performance Peer Group in certain instances may not adequately reflect the respective fund's investment objectives and strategies thereby hindering a meaningful comparison of the fund's performance with that of the Performance Peer Group. The Independent Board Members further considered the performance of the Funds in the context of the volatile Nuveen Investments 119 Annual Investment Management Agreement Approval Process (continued) market conditions during the past year, and their impact on various asset classes and the portfolio management of the Funds. Based on their review and factoring in the severity of market turmoil in 2008, the Independent Board Members determined that each Fund's investment performance over time had been satisfactory. C. FEES, EXPENSES AND PROFITABILITY 1. Fees and Expenses The Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund's gross management fees, net management fees and total expense ratios (before and after expense reimbursements and/or waivers) in absolute terms as well as compared to the fee and expenses of a comparable universe of unaffiliated funds based on data provided by an independent fund data provider (the "Peer Universe") and in certain cases, to a more focused subset of funds in the Peer Universe (the "Peer Group"). The Independent Board Members further reviewed data regarding the construction of the applicable Peer Universe and Peer Group. In reviewing the comparisons of fee and expense information, the Independent Board Members took into account that in certain instances various factors such as the asset level of a fund relative to peers, the size and particular composition of the Peer Universe or Peer Group, the investment objectives of the peers, expense anomalies, changes in the funds comprising the Peer Universe or Peer Group from year to year, levels of reimbursement and the timing of information used may impact the comparative data, thereby limiting the ability to make a meaningful comparison. In addition, the Independent Board Members considered, among other things, the differences in the use and type of leverage compared to the peers. In reviewing the fee schedule for a Fund, the Independent Board Members also considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen (applicable, in particular, for certain closed-end funds launched since 1999). Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund's management fees and net total expense ratio were reasonable in light of the nature, extent and quality of services provided to the Fund. 2. Comparisons with the Fees of Other Clients The Independent Board Members further reviewed information regarding the nature of services and fee rates offered by NAM to other clients. Such other clients include NAM's municipal separately managed accounts. In evaluating the comparisons of fees, the Independent Board Members noted that the fee rates charged to the Funds and other clients vary, among other things, because of the different services involved and the additional regulatory and compliance requirements associated with registered investment companies, such as the Funds. Accordingly, the Independent Board Members considered the differences in the product types, including, but not limited to, the services provided, the structure and operations, product distribution and 120 Nuveen Investments costs thereof, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Independent Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. Given the inherent differences in the products, particularly the extensive services provided to the Funds, the Independent Board Members believe such facts justify the different levels of fees. 3. Profitability of Nuveen In conjunction with its review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities (which incorporated Nuveen's wholly-owned affiliated sub-advisers other than Winslow Capital) and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen's advisory activities for the last two years, the allocation methodology used in preparing the profitability data and an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2008. In addition, the Independent Board Members reviewed information regarding the financial results of Nuveen for 2008 based on its Form 8-K filed on March 31, 2009. The Independent Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Independent Board Members noted that they had also appointed an Independent Board Member as a point person to review and keep them apprised of changes to the profitability analysis and/or methodologies during the year. The Independent Board Members also considered Nuveen's revenues for advisory activities, expenses, and profit margin compared to that of various unaffiliated management firms with similar amounts of assets under management and relatively comparable asset composition prepared by Nuveen. In reviewing profitability, the Independent Board Members recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses. Further, the Independent Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, the adviser's particular business mix, capital costs, types of funds managed and expense allocations. Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen's methodology and assumptions for allocating expenses across product lines to determine profitability. In reviewing profitability, the Independent Board Members recognized Nuveen's investment in its fund business. Based on their review, the Independent Board Members concluded that Nuveen's level of profitability for its advisory activities was reasonable in light of the services provided. Nuveen Investments 121 Annual Investment Management Agreement Approval Process (continued) In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts paid to NAM by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) NAM and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds, if any. See Section E below for additional information on indirect benefits NAM may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangements of each Fund, the Independent Board Members determined that the advisory fees and expenses of the respective Fund were reasonable. D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE With respect to economies of scale, the Independent Board Members have recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base, although economies of scale are difficult to measure and predict with precision, particularly on a fund-by-fund basis. One method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Generally, management fees for funds in the Nuveen complex are comprised of a fund-level component and a complex-level component, subject to certain exceptions. Accordingly, the Independent Board Members reviewed and considered the applicable fund-level breakpoints in the advisory fee schedules that reduce advisory fees as asset levels increase. In this regard, the Independent Board Members noted that although closed-end funds may from time-to-time make additional share offerings, the growth of their assets will occur primarily through the appreciation of such funds' investment portfolio. While economies of scale result when costs can be spread over a larger asset base, the Independent Board Members also recognized that the asset levels generally declined in 2008 due to, among other things, the market downturn. Accordingly, for funds with a reduction in assets under management, advisory fee levels may have increased as breakpoints in the fee schedule were no longer surpassed. In addition to fund-level advisory fee breakpoints, the Board also considered the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex generally are reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement seeks to provide the benefits of economies of scale to fund shareholders when total fund complex assets increase, even if assets of a particular fund are unchanged or have decreased. The approach reflects the notion that some of Nuveen's costs are attributable to services provided to all its funds in the complex and therefore all funds benefit if these costs are spread over a larger asset base. Generally, the complex-wide pricing reduces Nuveen's revenue because total complex fund assets have consistently grown in prior years. As noted, however, total fund assets declined in 2008 resulting in a smaller downward adjustment of revenues due to complex-wide pricing compared to the prior year. Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase. 122 Nuveen Investments E. INDIRECT BENEFITS In evaluating fees, the Independent Board Members received and considered information regarding potential "fall out" or ancillary benefits NAM or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Independent Board Members considered revenues received by affiliates of NAM for serving as agent at Nuveen's trading desk. In addition to the above, the Independent Board Members considered whether NAM received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to NAM in managing the assets of the Funds and other clients. The Independent Board Members noted that NAM does not currently have any soft dollar arrangements; however, to the extent certain bona fide agency transactions that occur on markets that traditionally trade on a principal basis and riskless principal transactions are considered as generating "commissions," NAM intends to comply with the applicable safe harbor provisions. Based on their review, the Independent Board Members concluded that any indirect benefits received by NAM as a result of its relationship with the Funds were reasonable and within acceptable parameters. F. OTHER CONSIDERATIONS The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of the Advisory Agreements are fair and reasonable, that NAM's fees are reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed. Nuveen Investments 123 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 124 Nuveen Investments per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. FLEXIBLE You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee. You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time. CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787. Nuveen Investments 125 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 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. o INVERSE FLOATERS: Inverse floating rate securities, also known as inverse floaters, 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. 126 Nuveen Investments 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 NAV per common 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 common shares outstanding. Fund NAVs are calculated at the end of each business day. o PRE-REFUNDING: Pre-refunding, also known as advanced refundings or refinancings, is a procedure used by state and local governments to refinance municipal bonds to lower interest expenses. The issuer sells new bonds with a lower yield and uses the proceeds to buy U.S. Treasury securities, the interest from which is used to make payments on the higher-yielding bonds. Because of this collateral, pre-refunding generally raises a bond's credit rating and thus its value. 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. Nuveen Investments 127 Notes 128 Nuveen Investments Other Useful Information BOARD OF DIRECTORS/TRUSTEES John P. Amboian Robert P. Bremner Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Judith M. Stockdale Carole E. Stone Terence J. Toth 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 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, 2009, 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 SEC the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act. COMMON AND PREFERRED SHARE INFORMATION Each Fund intends to repurchase and/or redeem shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report, the Funds repurchased and/or redeemed/noticed for redemption shares of their common and/or preferred stock as shown in the accompanying table. PREFERRED SHARES COMMON SHARES REDEEMED AND/OR REPURCHASED NOTICED FOR REDEMPTION NQI -- 2,103 NIO -- 2,002 NIF -- 993 NPX -- -- NVG 10,400 5,401 NEA 19,300 432 Any future repurchases and/or redemptions will be reported to shareholders in the next annual or semi-annual report. Nuveen Investments 129 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. Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets its growing range of specialized investment solutions under the high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, the Company managed $141 billion of assets on September 30, 2009. 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/CEF o Share prices o Fund details o Daily financial news o Investor education o Interactive planning tools Distributed by Nuveen Investments, LLC 333 West Wacker Drive Chicago, IL 60606 It's not what you earn, www.nuveen.com it's what you keep.(R) EAN-D-1009D ITEM 2. CODE OF ETHICS. As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/CEF/Info/Shareholder. (To view the code, click on Fund Governance and then click on Code of Conduct.) ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's Board of Directors or Trustees ("Board") determined that the registrant has at least one "audit committee financial expert" (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit committee financial expert is Jack B. Evans, who is "independent" for purposes of Item 3 of Form N-CSR. Mr. Evans was formerly President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser ("SCI"). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and actively supervised the CFO's preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI's financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Nuveen Insured Tax-Free Advantage Municipal Fund The following tables show the amount of fees that Ernst & Young LLP, the Fund's auditor, billed to the Fund during the Fund's last two full fiscal years. For engagements with Ernst & Young LLP the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed. The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee). SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4) ------------------------------------------------------------------------------------------------------------------------------- October 31, 2009 $ 20,669 $ 0 $ 0 $ 850 ------------------------------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception ------------------------------------------------------------------------------------------------------------------------------- October 31, 2008 $ 19,883 $ 0 $ 0 $ 850 ------------------------------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception -------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for the audit of the Fund's annual financial statements and services provided in connection with statutory and regulatory filings or engagements. (2) "Audit Related Fees" are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements and are not reported under "Audit Fees." (3) "Tax Fees" are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. (4) "All Other Fees" are the aggregate fees billed for products and services for agreed upon procedures engagements performed for leveraged funds. SERVICES THAT THE FUND'S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS The following tables show the amount of fees billed by Ernst & Young LLP to Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling, controlled by or under common control with NAM that provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for engagements directly related to the Fund's operations and financial reporting, during the Fund's last two full fiscal years. The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the Fund's audit is completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS ------------------------------------------------------------------------------------------------------------------------------------ October 31, 2009 $ 0 $ 0 $ 0 ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% pursuant to pre-approval exception ------------------------------------------------------------------------------------------------------------------------------------ October 31, 2008 $ 0 $ 0 $ 0 ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% pursuant to pre-approval exception ------------------------------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES The following table shows the amount of fees that Ernst & Young LLP billed during the Fund's last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund's operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested and received information from Ernst & Young LLP about any non-audit services that Ernst & Young LLP rendered during the Fund's last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Ernst & Young LLP's independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES BILLED TO ADVISER AND AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL ------------------------------------------------------------------------------------------------------------------------------------ October 31, 2009 $ 850 $ 0 $ 0 $ 850 October 31, 2008 $ 850 $ 0 $ 0 $ 850
"Non-Audit Fees billed to Fund" for both fiscal year ends represent "Tax Fees" and "All Other Fees" billed to Fund in their respective amounts from the previous table. Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Fund by the Fund's independent accountants and (ii) all audit and non-audit services to be performed by the Fund's independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. The registrant's Board has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner, Jack B. Evans, Terence J. Toth, William J. Schneider and David J. Kundert. ITEM 6. SCHEDULE OF INVESTMENTS. a) See Portfolio of Investments in Item 1. b) Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. The registrant invests its assets primarily in municipal bonds and cash management securities. On rare occasions the registrant may acquire, directly or through a special purpose vehicle, equity securities of a municipal bond issuer whose bonds the registrant already owns when such bonds have deteriorated or are expected shortly to deteriorate significantly in credit quality. The purpose of acquiring equity securities generally will be to acquire control of the municipal bond issuer and to seek to prevent the credit deterioration or facilitate the liquidation or other workout of the distressed issuer's credit problem. In the course of exercising control of a distressed municipal issuer, NAM may pursue the registrant's interests in a variety of ways, which may entail negotiating and executing consents, agreements and other arrangements, and otherwise influencing the management of the issuer. NAM does not consider such activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but nevertheless provides reports to the registrant's Board on its control activities on a quarterly basis. In the rare event that a municipal issuer were to issue a proxy or that the registrant were to receive a proxy issued by a cash management security, NAM would either engage an independent third party to determine how the proxy should be voted or vote the proxy with the consent, or based on the instructions, of the registrant's Board or its representative. A member of NAM's legal department would oversee the administration of the voting, and ensure that records were maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on Form N-PX, and the results provided to the registrant's Board and made available to shareholders as required by applicable rules. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. THE PORTFOLIO MANAGER The following individual has primary responsibility for the day-to-day implementation of the registrant's investment strategies: NAME FUND PAUL BRENNAN Nuveen Insured Tax-Free Advantage Municipal Fund Other Accounts Managed. In addition to managing the registrant, the portfolio manager is also primarily responsible for the day-to-day portfolio management of the following accounts: TYPE OF ACCOUNT NUMBER OF PORTFOLIO MANAGER MANAGED ACCOUNTS ASSETS -------------------------------------------------------------------------------- Paul Brennan Registered Investment Company 13 $13.6 billion Other Pooled Investment Vehicles 0 $0 Other Accounts 1 $1.06 million * Assets are as of October 31, 2009. None of the assets in these accounts are subject to an advisory fee based on performance. Compensation. Each portfolio manager's compensation consists of three basic elements--base salary, cash bonus and long-term incentive compensation. The compensation strategy is to annually compare overall compensation, including these three elements, to the market in order to create a compensation structure that is competitive and consistent with similar financial services companies. As discussed below, several factors are considered in determining each portfolio manager's total compensation. In any year these factors may include, among others, the effectiveness of the investment strategies recommended by the portfolio manager's investment team, the investment performance of the accounts managed by the portfolio manager, and the overall performance of Nuveen Investments, Inc. (the parent company of NAM). Although investment performance is a factor in determining the portfolio manager's compensation, it is not necessarily a decisive factor. The portfolio manager's performance is evaluated in part by comparing manager's performance against a specified investment benchmark. This fund-specific benchmark is a customized subset (limited to bonds in each Fund's specific state and with certain maturity parameters) of the S&P/Investortools Municipal Bond index, an index comprised of bonds held by managed municipal bond fund customers of Standard & Poor's Securities Pricing, Inc. that are priced daily and whose fund holdings aggregate at least $2 million. As of October 31, 2009, the S&P/Investortools Municipal Bond index was comprised of 54,552 securities with an aggregate current market value of $1,178 billion. Base salary. Each portfolio manager is paid a base salary that is set at a level determined by NAM in accordance with its overall compensation strategy discussed above. NAM is not under any current contractual obligation to increase a portfolio manager's base salary. Cash bonus. Each portfolio manager is also eligible to receive an annual cash bonus. The level of this bonus is based upon evaluations and determinations made by each portfolio manager's supervisors, along with reviews submitted by his peers. These reviews and evaluations often take into account a number of factors, including the effectiveness of the investment strategies recommended to the NAM's investment team, the performance of the accounts for which he serves as portfolio manager relative to any benchmarks established for those accounts, his effectiveness in communicating investment performance to stockholders and their representatives, and his contribution to the NAM's investment process and to the execution of investment strategies. The cash bonus component is also impacted by the overall performance of Nuveen Investments, Inc. in achieving its business objectives. Long-term incentive compensation. In connection with the acquisition of Nuveen Investments, Inc., by a group of investors led by Madison Dearborn Partners in November 2007, certain employees, including portfolio managers, received profit interests in Nuveen's parent. These profit interests entitle the holders to participate in the appreciation in the value of Nuveen beyond the issue date and vest over five to seven years, or earlier in the case of a liquidity event. In addition, in July 2009, Nuveen Investments created and funded a trust, as part of a newly-established incentive program, which purchased shares of certain Nuveen Mutual Funds and awarded such shares, subject to vesting, to certain employees, including portfolio managers. Material Conflicts of Interest. Each portfolio manager's simultaneous management of the registrant and the other accounts noted above may present actual or apparent conflicts of interest with respect to the allocation and aggregation of securities orders placed on behalf of the registrant and the other account. NAM, however, believes that such potential conflicts are mitigated by the fact that the NAM has adopted several policies that address potential conflicts of interest, including best execution and trade allocation policies that are designed to ensure (1) that portfolio management is seeking the best price for portfolio securities under the circumstances, (2) fair and equitable allocation of investment opportunities among accounts over time and (3) compliance with applicable regulatory requirements. All accounts are to be treated in a non-preferential manner, such that allocations are not based upon account performance, fee structure or preference of the portfolio manager, although the allocation procedures may provide allocation preferences to funds with special characteristics (such as favoring state funds versus national funds for allocations of in-state bonds). In addition, NAM has adopted a Code of Conduct that sets forth policies regarding conflicts of interest. Beneficial Ownership of Securities. As of October 31, 2009, the portfolio manager beneficially owned the following dollar range of equity securities issued by the registrant and other Nuveen Funds managed by NAM's municipal investment team.
DOLLAR RANGE OF EQUITY SECURITIES DOLLAR RANGE OF BENEFICIALLY OWNED EQUITY IN THE REMAINDER OF SECURITIES NUVEEN FUNDS MANAGED BENEFICIALLY BY NAM'S MUNICIPAL NAME OF PORTFOLIO MANAGER FUND OWNED IN FUND INVESTMENT TEAM -------------------------------------------------------------------------------------------------------------------- Paul Brennan Nuveen Insured Tax-Free Advantage Municipal Fund $0 $100,001-$500,000
PORTFOLIO MANAGER BIO: Paul Brennan, CFA, CPA, became a portfolio manager of Flagship Financial Inc. in 1994, and subsequently became an Assistant Vice President of NAM upon the acquisition of Flagship Resources Inc. by Nuveen in 1997. He became Vice President of NAM in 2002. He currently manages investments for 14 Nuveen-sponsored investment companies. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Period* (a) (b) (c) (d)* TOTAL NUMBER OF AVERAGE TOTAL NUMBER OF SHARES MAXIMUM NUMBER (OR SHARES (OR PRICE (OR UNITS) PURCHASED AS APPROXIMATE DOLLAR VALUE) OF UNITS) PAID PER PART OF PUBLICLY SHARES (OR UNITS) THAT MAY YET PURCHASED SHARE (OR ANNOUNCED PLANS OR BE PURCHASED UNDER THE PLANS OR UNIT) PROGRAMS PROGRAMS NOVEMBER 1-30, 2008 0 0 1,855,000 DECEMBER 1-31, 2008 0 0 1,855,000 JANUARY 1-31, 2009 0 0 1,855,000 FEBRUARY 1-28, 2009 19,300 $10.98 19,300 1,835,700 MARCH 1-31, 2009 0 0 1,835,700 APRIL 1-30, 2009 0 0 1,835,700 MAY 1-31, 2009 0 0 1,835,700 JUNE 1-30, 2009 0 0 1,835,700 JULY 1-31, 2009 0 0 1,835,700 AUGUST 1-31, 2009 0 0 1,835,700 SEPTEMBER 1-30, 2009 0 0 1,835,700 OCTOBER 1-31, 2009 0 0 1,850,000 TOTAL 19,300
* The registrant's repurchase program, which authorized the repurchase of 1,855,000 shares, was announced August 7, 2008. On October 3, 2009, the program was reauthorized for a maximum repurchase amount of 1,850,000 shares. Any repurchases made by the registrant pursuant to the program were made through open-market transactions. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board implemented after the registrant last provided disclosure in response to this item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act") (17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable because the code is posted on registrant's website at www.nuveen.com/CEF/Info/ Shareholder and there were no amendments during the period covered by this report. (To view the code, click on Fund Governance and then Code of Conduct.) (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT Attached hereto. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen Insured Tax-Free Advantage Municipal Fund ----------------------------------------------------------- By (Signature and Title) /s/ Kevin J. McCarthy ---------------------------------------------- Kevin J. McCarthy Vice President and Secretary Date: January 8, 2010 ------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title) /s/ Gifford R. Zimmerman ---------------------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) Date: January 8, 2010 ------------------------------------------------------------------- By (Signature and Title) /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: January 8, 2010 -------------------------------------------------------------------