-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SDTP7DTG+ZsgUCT53QD/YJZaYG1rvBMZadUBDszJ1ASE0PI4EL/h4i0ynVgV3sTg BTtDOhgnVaI5d5ZGKMVq1w== 0000891804-03-001493.txt : 20030708 0000891804-03-001493.hdr.sgml : 20030708 20030708110253 ACCESSION NUMBER: 0000891804-03-001493 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030430 FILED AS OF DATE: 20030708 EFFECTIVENESS DATE: 20030708 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN INSURED QUALITY MUNICIPAL FUND INC CENTRAL INDEX KEY: 0000869405 IRS NUMBER: 363734233 FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-06206 FILM NUMBER: 03777959 BUSINESS ADDRESS: STREET 1: 333 WEST WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178200 MAIL ADDRESS: STREET 1: 333 W WACKER CITY: CHICAGO STATE: IL ZIP: 60606 N-CSR 1 file001.txt NUVEEN INSURED QUALITY MUNICIPAL FUND, INC. 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 811-6206 --------------------- Nuveen Insured Quality Municipal Fund, Inc. ------------------------------------------------------------------------------ (Exact name of registrant as specified in charter) Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 - ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Jessica R. Droeger Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 - ------------------------------------------------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: (312) 917-7700 ------------------- Date of fiscal year end: October 31st ------------------ Date of reporting period: April 30th ----------------- 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. SEMIANNUAL REPORT April 30, 2003 Nuveen Municipal Closed-End Exchange-Traded Funds INSURED QUALITY NQI INSURED OPPORTUNITY NIO PREMIER INSURED INCOME NIF INSURED PREMIUM INCOME 2 NPX INSURED DIVIDEND ADVANTAGE NVG INSURED TAX-FREE ADVANTAGE NEA DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Logo: NUVEEN Investments FASTER INFORMATION RECEIVE YOUR NUVEEN FUND REPORT ELECTRONICALLY By registering for electronic delivery, you will receive an e-mail as soon as your Nuveen Fund information is available. Click on the link and you will be taken directly to the report. Your Fund report can be viewed and saved on your computer. Your report will arrive faster via e-mail than by traditional mail. Registering is easy and only takes a few minutes (see instructions at right). SOME COMMON CONCERNS: WILL MY E-MAIL ADDRESS BE DISTRIBUTED TO OTHER COMPANIES? No, your e-mail address is strictly confidential and will not be used for anything other than notification of shareholder information. WHAT IF I CHANGE MY MIND AND WANT TO RECEIVE INVESTOR MATERIALS THROUGH REGULAR MAIL DELIVERY AGAIN? If you decide you do not like receiving your reports electronically, it's a simple process to go back to regular mail delivery. IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT, FOLLOW THE STEPS OUTLINED BELOW: 1 Go to WWW.INVESTORDELIVERY.COM 2 Refer to the address sheet that accompanied this report. Enter the personal 13-CHARACTER ENROLLMENT NUMBER imprinted near your name. 3 You'll be taken to a page with several options. Select the NEW ENROLLMENT-CREATE screen. Once there, enter your e-mail address (e.g. yourID@providerID.com), and a personal, 4-digit PIN number of your choice. (Pick a number that's easy to remember.) 4 Click Submit. Confirm the information you just entered is correct, then click Submit again. 5 You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 6 Use this same process if you need to change your registration information or cancel internet viewing. IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS COME DIRECTLY TO YOU FROM NUVEEN, FOLLOW THE STEPS OUTLINED BELOW: 1 Go to WWW.NUVEEN.COM 2 Select ACCESS YOUR ACCOUNT. Select the E-REPORT ENROLLMENT section. Click on Enrollment Today. 3 You'll be taken to a screen that asks for your Social Security number and e-mail address. Fill in this information, then click Enroll. 4 You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 5 Use this same process if you need to change your registration information or cancel internet viewing. Logo: NUVEEN Investments Photo of: Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board Sidebar text: "NO ONE KNOWS WHAT THE FUTURE WILL BRING, WHICH IS WHY WE THINK A WELL-BALANCED PORTFOLIO ... IS AN IMPORTANT COMPONENT IN ACHIEVING YOUR LONG-TERM FINANCIAL GOALS." Dear SHAREHOLDER Once again, I am pleased to report that over the most recent reporting period your Fund continued to provide you with attractive tax-free monthly income. For more specific information about the performance of your Fund, please see the Portfolio Manager's Comments and Performance Overview sections of this report. With interest rates at historically low levels, many have begun to wonder how fixed-income investments will perform if interest rates begin to rise. No one knows what the future will bring, which is why we think a well-balanced portfolio that is structured and carefully monitored with the help of an investment professional is an important component in achieving your long-term financial goals. A well-diversified portfolio may actually help to reduce your overall investment risk, and we believe that municipal bond investments like your Nuveen Fund can be important building blocks in a portfolio crafted to perform well through a variety of market conditions. I'd also like to direct your attention to the inside front cover of this report, which explains the quick and easy process to begin receiving Fund reports like this via e-mail and the internet. Thousands of Nuveen Fund shareholders already have signed-up, and they are getting their Fund information faster and more conveniently than ever. I urge you to consider joining them. Since 1898, Nuveen Investments has offered financial products and solutions that incorporate careful research, diversification, and the application of conservative risk-management principles. We are grateful that you have chosen us as a partner as you pursue your financial goals. We look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board June 16, 2003 1 Nuveen Municipal Closed-End Exchange-Traded Funds (NQI, NIO, NIF, NPX, NVG, NEA) Portfolio Manager's COMMENTS Portfolio manager Tom O'Shaughnessy reviews economic and market conditions, key investment strategies, and the recent performance of the Funds. With 20 years of investment experience at Nuveen, Tom has managed NEA since its inception in November 2002, and assumed management responsibility for NQI, NIO, NIF, NPX and NVG in January 2003. WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE PERIOD ENDED APRIL 30, 2003? The underlying economic and market conditions have not changed much since our last shareholder report dated October 31, 2002. We believe the most influential factors shaping the U.S. economy and the municipal market during this reporting period continued to be the sluggish pace of economic growth and interest rates that remained at 40-year lows. At the same time, continued geopolitical concerns, centering on the ongoing threat of terrorism and the situation in Iraq, also had an impact during this reporting period, particularly in terms of investor sentiment. In the municipal market, the slow economic recovery and the continued lack of inflationary pressures created conditions that helped many bonds perform well during this reporting period. As of April 2003, inflation was running at 1.5% annualized, the lowest annual rate in 37 years. Following a record year in 2002, municipal issuance nationwide remained very heavy during the first four months of 2003, with $113.5 billion in new municipal bonds coming to market, an increase of 21% over the same period in 2002. Despite the large supply of new municipal bonds, firm or improving prices indicated continued strong demand from investors. In particular, institutional investors such as property/ casualty insurance companies, hedge funds, arbitrage accounts and pension funds were active buyers in the municipal market over much of this reporting period. HOW DID THESE FUNDS PERFORM OVER THE TWELVE-MONTH PERIOD ENDED APRIL 30, 2003? Individual results for these Funds, as well as for appropriate benchmarks, are presented in the accompanying table. TOTAL RETURN LEHMAN LIPPER MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2 - ----------------------------------------------------------------------- 1 YEAR 1 YEAR 1 YEAR TAXABLE- ENDED ENDED ENDED 4/30/03 EQUIVALENT3 4/30/03 4/30/03 4/30/03 - ----------------------------------------------------------------------- NQI 6.07% 8.67% 12.57% 9.42% 11.66% - ----------------------------------------------------------------------- NIO 6.03% 8.61% 13.54% 9.42% 11.66% - ----------------------------------------------------------------------- NIF 6.02% 8.60% 13.19% 9.42% 11.66% - ----------------------------------------------------------------------- NPX 5.92% 8.46% 12.94% 9.42% 11.66% - ----------------------------------------------------------------------- NVG 6.17% 8.81% 15.36% 9.42% 11.66% - ----------------------------------------------------------------------- NEA 6.18% 8.83% N/A - - - ----------------------------------------------------------------------- Past performance is not predictive of future results. For additional information, see the individual Performance Overview for your Fund in this report. 1 The total annual returns on common share net asset value (NAV) for these insured Funds are compared with the total annual return of the Lehman Brothers Insured Municipal Bond Index, an unleveraged index comprising a broad range of insured municipal bonds. Results for the Lehman index do not reflect any expenses. 2 The total returns of these Nuveen Funds are compared with the average annualized return of the 22 funds in the Lipper Insured Leveraged Municipal Debt Funds category. Fund and Lipper returns assume reinvestment of dividends. 3 The taxable-equivalent yield represents the yield that must be earned on a taxable investment in order to equal the yield of the Nuveen Fund on an after-tax basis. The taxable-equivalent yield is based on the Fund's market yield on the indicated date and a federal income tax rate of 30%. 2 For the twelve months ended April 30, 2003, all five of the Funds in this report having at least one year of performance history outperformed the unleveraged, unmanaged Lehman Brothers Insured Municipal Bond Index and their Lipper Fund peer group average. Much of this outperformance relative to the Lehman Index is attributable to the Funds' use of leverage, a strategy that adds volatility but can provide the opportunity for additional income for common shareholders. Leverage can work especially well during periods of low short-term interest rates, as was the case during the twelve-month period. In addition to leverage, the relative performances of these Funds were influenced by factors such as call exposure, credit selection, and the generally strong overall performance of AAA rated securities over the measurement period. During the twelve-month period, the total return performance of the insured municipal sector of the Lehman index topped that of the municipal market as a whole by almost 100 basis points. HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES? With short-term interest rates at historically low levels, the dividend-payment capabilities of these Funds benefited from their use of leverage. The amount of this benefit is tied in part to the short-term rates the Funds pay their MuniPreferred(R) shareholders. Low short-term rates can enable the Funds to reduce the amount of income they pay MuniPreferred holders, which can potentially leave more earnings to support common share dividends. During the twelve months ended April 30, 2003, the continued low level of short-term interest rates enabled us to implement four dividend increases in NQI and three each in NIO, NIF, and NPX. The two newer Funds - NVG and NEA - have continued to pay steady, attractive dividends since their first dividend declarations in May 2002 and January 2003, respectively. Over the course of the twelve-month period, strong demand and favorable market conditions helped to boost the share prices and NAVs of all six of the Funds in this report. As of April 30, 2003, NQI and NPX had moved from trading at discounts to their common share net asset values to trading 3 at premiums, NIO was trading at virtually the same level as its NAV, and NIF's premium had widened. For NVG, the increase in NAV outpaced the rise in share price, and this Fund was trading at a discount. Through April 30, 2003, NEA has traded at a premium since its introduction in November 2002. (See charts on individual Performance Overview pages.) WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE PERIOD ENDED APRIL 30, 2003? Over the reporting period, we continued to place strong emphasis on diversifying the Funds' port-folios, enhancing call protection and supporting their future dividend-paying capabilities. Since these Funds primarily hold insured bonds, which are not subject to normal credit risk, our risk management efforts focused on interest rate risk. Interest rate risk is the risk that the value of a Fund's portfolio will decline when market interest rates rise (since bond prices move in the opposite direction of interest rates). The longer the duration4 of a Fund's portfolio, the greater its interest rate risk. Over the past year, we worked systematically to shorten the Funds' durations, which we believe will help us better control interest rate risk over time and enhance the Funds' ability to produce attractive returns. In line with our moderated duration strategy, we concentrated on finding value in the long- intermediate part of the yield curve (i.e., bonds that mature in about 20 years). In many cases, bonds in this part of the curve were offering yields similar to those of longer bonds but had less inherent interest rate risk. Over the period, the purchase of bonds in this part of the curve helped to shorten the durations of these Funds, making their portfolios less sensitive to any changes in the interest rate environment while still allowing them to provide competitive yields. In general, the heavy issuance in the municipal market over the past year provided us with increased opportunities to purchase the types of insured bond structures that we favor. We also continued to look for individual issues that we believed would perform well regardless of the future direction of interest rates. The four older Funds maintained their strong weightings 4 Duration is a measure of a Fund's NAV volatility in reaction to interest rate movements. Fund duration, also known as leverage-adjusted duration, takes into account the leveraging process for a Fund and therefore is generally longer than the duration of the actual portfolio of individual bonds that make up the Fund. References to duration in this commentary are intended to indicate Fund duration unless otherwise noted. 4 in healthcare bonds, the top performing group among the Lehman revenue sectors for the twelve months ended April 30, 2003. Given the current geopolitical and economic climate, we continued to believe that strong credit quality remained a vital requirement for the Funds. As of April 30, 2003, the four older Funds were 100% invested in AAA rated, U.S. guaranteed and/or insured bonds. NVG and NEA held 93% and 99%, respectively, of their portfolios in AAA rated bonds, although these two Funds are allowed to invest up to 20% of their portfolios in non-insured but investment-grade quality bonds. In addition, NEA may not invest in any bonds whose interest payments are subject to the federal alternative minimum tax. WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THESE FUNDS IN PARTICULAR? We think new issuance volume should remain strong, as issuers continue to take advantage of the low rate environment. Adding to our expectations for continued strong issuance are the budget deficits affecting many states, and their continued need to raise money for infrastructure, education and healthcare needs. Over coming months, we will continue to closely monitor the states' budgetary situations to watch for any potential impact on credit ratings. Looking at the bond call exposure, we believe that these Funds offer good levels of call protection during the remainder of 2003 and through 2004. As of April 30, 2003, the portion of the four older Funds eligible for calls over this period ranged from 8% to 12%. The two newer Funds - NVG and NEA - will not face any significant call exposure for several years. The number of actual calls during this time will depend largely on market interest rates and the specific situations of individual issuers. In the coming months, our primary goal will continue to be moderating the Funds' durations. In addition, we plan to watch for opportunities to purchase or swap for issues that we perceive to be under-valued, particularly in sectors of the market that have recently underperformed. The expected strong supply of new bonds should help us in this effort. 5 Nuveen Insured Quality Municipal Fund, Inc. Performance OVERVIEW As of April 30, 2003 NQI Pie Chart: CREDIT QUALITY Insured 89% Insured and U.S. Guaranteed 10% U.S. Guaranteed 1% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $16.71 - -------------------------------------------------- Common Share Net Asset Value $16.11 - -------------------------------------------------- Market Yield 6.07% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.67% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $611,343 - -------------------------------------------------- Average Effective Maturity (Years) 21.46 - -------------------------------------------------- Leverage-Adjusted Duration 7.97 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 12/90) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 18.80% 12.57% - -------------------------------------------------- 5-Year 8.33% 7.19% - -------------------------------------------------- 10-Year 6.85% 6.78% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Transportation 22% - -------------------------------------------------- Healthcare 16% - -------------------------------------------------- Utilities 14% - -------------------------------------------------- U.S. Guaranteed 11% - -------------------------------------------------- Tax Obligation/General 10% - -------------------------------------------------- Bar Chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 5/02 0.076 6/02 0.0785 7/02 0.0785 8/02 0.0785 9/02 0.08 10/02 0.08 11/02 0.08 12/02 0.0815 1/03 0.0815 2/03 0.0815 3/03 0.0845 4/03 0.0845 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 5/1/02 15.22 15.19 15.26 15.16 15.3 15.32 15.63 15.65 15.76 15.87 16.1 15.87 15.91 15.95 16.11 16.05 15.88 16 16.13 16.21 16.24 16.3 16.39 16.08 15.26 15.19 15.55 15.41 15.48 15.5 15.65 15.64 15.55 15.48 15.61 15.95 15.6 15.67 15.87 15.94 15.9 16.08 16.01 16.25 16.21 16.17 15.92 16.38 16.4 16.42 16.6 4/30/03 16.53 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 30%. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2002 of $0.1191 per share. 6 Nuveen Insured Municipal Opportunity Fund, Inc. Performance OVERVIEW As of April 30, 2003 NIO Pie Chart: CREDIT QUALITY Insured 87% Insured and U.S. Guaranteed 11% U.S. Guaranteed 2% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $16.12 - -------------------------------------------------- Common Share Net Asset Value $16.14 - -------------------------------------------------- Market Yield 6.03% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.61% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $1,308,514 - -------------------------------------------------- Average Effective Maturity (Years) 21.21 - -------------------------------------------------- Leverage-Adjusted Duration 8.46 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 9/91) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 15.60% 13.54% - -------------------------------------------------- 5-Year 6.88% 7.01% - -------------------------------------------------- 10-Year 7.37% 6.97% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Transportation 21% - -------------------------------------------------- Utilities 14% - -------------------------------------------------- U.S. Guaranteed 13% - -------------------------------------------------- Tax Obligation/Limited 12% - -------------------------------------------------- Healthcare 11% - -------------------------------------------------- Bar Chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 5/02 0.0765 6/02 0.079 7/02 0.079 8/02 0.079 9/02 0.08 10/02 0.08 11/02 0.08 12/02 0.08 1/03 0.08 2/03 0.08 3/03 0.081 4/03 0.081 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 5/1/02 15.11 15 14.85 15.01 15.1 15.18 15.04 15.3 15.53 15.6 15.73 15.68 15.3 15.78 15.81 15.65 15.79 15.81 15.89 15.84 15.89 15.96 16.15 15.75 14.89 15.17 15.27 15.35 15.18 14.95 15.03 15.32 15.24 15.33 15.49 15.67 15.34 15.6 15.65 15.73 15.85 15.82 15.78 15.93 15.8 15.7 15.54 15.86 15.85 15.9 15.92 4/30/03 15.96 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 30%. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2002 of $0.1285 per share. 7 Nuveen Premier Insured Municipal Income Fund, Inc. Performance OVERVIEW As of April 30, 2003 NIF Pie Chart: CREDIT QUALITY Insured 84% Insured and U.S. Guaranteed 2% U.S. Guaranteed 14% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $16.24 - -------------------------------------------------- Common Share Net Asset Value $16.06 - -------------------------------------------------- Market Yield 6.02% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.60% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $310,654 - -------------------------------------------------- Average Effective Maturity (Years) 18.54 - -------------------------------------------------- Leverage-Adjusted Duration 9.60 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 12/91) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 14.42% 13.19% - -------------------------------------------------- 5-Year 7.21% 6.66% - -------------------------------------------------- 10-Year 7.15% 6.75% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Transportation 20% - -------------------------------------------------- Tax Obligation/General 16% - -------------------------------------------------- U.S. Guaranteed 16% - -------------------------------------------------- Healthcare 15% - -------------------------------------------------- Tax Obligation/Limited 13% - -------------------------------------------------- Bar Chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 5/02 0.0785 6/02 0.0795 7/02 0.0795 8/02 0.0795 9/02 0.0805 10/02 0.0805 11/02 0.0805 12/02 0.0805 1/03 0.0805 2/03 0.0805 3/03 0.0815 4/03 0.0815 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 5/1/02 15.25 15.32 15.35 15.32 15.27 15.31 15.24 15.62 15.68 15.85 15.9 15.89 15.9 15.9 15.98 15.75 15.75 15.76 15.99 15.9 15.94 15.9 16.12 16 15.2 15.32 15.7 15.29 15.19 15.22 15.38 15.46 15.34 15.2 15.55 15.9 15.39 15.53 15.65 15.78 15.87 15.78 15.94 15.9 16.06 16.04 15.77 15.95 16.13 15.99 16.03 4/30/03 16.14 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 30%. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2002 of $0.0360 per share. 8 Nuveen Insured Premium Income Municipal Fund 2 Performance OVERVIEW As of April 30, 2003 NPX Pie Chart: CREDIT QUALITY Insured 89% Insured and U.S. Guaranteed 11% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $14.59 - -------------------------------------------------- Common Share Net Asset Value $14.54 - -------------------------------------------------- Market Yield 5.92% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.46% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $542,033 - -------------------------------------------------- Average Effective Maturity (Years) 17.21 - -------------------------------------------------- Leverage-Adjusted Duration 7.05 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 7/93) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 15.09% 12.94% - -------------------------------------------------- 5-Year 9.18% 7.16% - -------------------------------------------------- Since Inception 5.83% 6.09% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Utilities 22% - -------------------------------------------------- Transportation 15% - -------------------------------------------------- Healthcare 12% - -------------------------------------------------- Tax Obligation/Limited 12% - -------------------------------------------------- Tax Obligation/General 11% - -------------------------------------------------- Bar Chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE 5/02 0.0685 6/02 0.0695 7/02 0.0695 8/02 0.0695 9/02 0.0705 10/02 0.0705 11/02 0.0705 12/02 0.0705 1/03 0.0705 2/03 0.0705 3/03 0.072 4/03 0.072 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 5/1/02 13.45 13.68 13.52 13.61 13.62 13.74 13.8 13.9 13.93 13.99 14.26 14.06 13.77 14 14.2 14.05 14.15 14.23 14.19 14.2 14.19 14.27 14.4 14.18 13.62 13.53 13.87 13.92 13.82 13.32 13.74 13.85 13.85 13.73 13.88 13.98 13.99 13.87 13.88 14.14 14.21 14.13 14.23 14.31 14.25 14.15 13.91 14.29 14.26 14.31 14.33 4/30/03 14.42 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 30%. 9 Nuveen Insured Dividend Advantage Municipal Fund Performance OVERVIEW As of April 30, 2003 NVG Pie Chart: CREDIT QUALITY Insured 84% AAA (uninsured) 9% AA (uninsured) 7% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $15.08 - -------------------------------------------------- Common Share Net Asset Value $15.77 - -------------------------------------------------- Market Yield 6.17% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.81% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $469,934 - -------------------------------------------------- Average Effective Maturity (Years) 21.39 - -------------------------------------------------- Leverage-Adjusted Duration 10.01 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/02) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 7.62% 15.36% - -------------------------------------------------- Since Inception 6.98% 16.00% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Tax Obligation/General 25% - -------------------------------------------------- Transportation 22% - -------------------------------------------------- Tax Obligation/Limited 13% - -------------------------------------------------- Education and Civic Organizations 12% - -------------------------------------------------- Water and Sewer 10% - -------------------------------------------------- Bar Chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 5/02 0.0775 6/02 0.0775 7/02 0.0775 8/02 0.0775 9/02 0.0775 10/02 0.0775 11/02 0.0775 12/02 0.0775 1/03 0.0775 2/03 0.0775 3/03 0.0775 4/03 0.0775 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 5/1/02 15.03 15.01 15.06 15.11 15.11 15.12 15.06 14.91 14.98 15.07 15.15 15.18 15.14 15.16 15.19 15.4 15.07 15.37 15.21 15.4 15.46 15.55 15.44 15.35 14.83 14.5 14.99 14.96 14.86 14.6 14.59 14.72 14.46 14.19 14.5 15.01 14.45 14.8 14.84 14.92 15.01 14.91 15 15.04 14.94 14.95 14.84 14.93 14.95 15.05 15.04 4/30/03 15.02 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 30%. 2 The Fund also paid shareholders a net ordinary income distribution in December 2002 of $0.1051 per share. 10 Nuveen Insured Tax-Free Advantage Municipal Fund Performance OVERVIEW As of April 30, 2003 NEA Pie Chart: CREDIT QUALITY Insured 95% AAA (uninsured) 4% A (uninsured) 1% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $15.05 - -------------------------------------------------- Common Share Net Asset Value $14.87 - -------------------------------------------------- Market Yield 6.18% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.83% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $275,111 - -------------------------------------------------- Average Effective Maturity (Years) 22.18 - -------------------------------------------------- Leverage-Adjusted Duration 11.44 - -------------------------------------------------- CUMULATIVE TOTAL RETURN (Inception 11/02) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- Since Inception 2.43% 5.98% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Tax Obligation/Limited 31% - -------------------------------------------------- Tax Obligation/General 25% - -------------------------------------------------- Utilities 17% - -------------------------------------------------- Water and Sewer 10% - -------------------------------------------------- Transportation 8% - -------------------------------------------------- Bar Chart: 2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE 1/03 0.0775 2/03 0.0775 3/03 0.0775 4/03 0.0775 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 11/22/02 15 15 15 15.01 15 14.66 14.8 14.94 14.94 14.94 14.92 15 14.99 14.93 14.97 14.66 14.83 14.96 15.17 15 15.08 4/30/03 14.97 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is calculated using the current market yield and a federal income tax rate of 30%. 11 Nuveen Insured Quality Municipal Fund, Inc. (NQI) Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 1.6% $ 9,200 City of Phoenix Civic Improvement Corporation, Arizona, Airport 7/12 at 100.00 AAA $ 9,493,204 Revenue Bonds, Series 2002B Senior Lien, 5.250%, 7/01/32 (Alternative Minimum Tax) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.2% 7,085 Arkansas Development Finance Authority, Single Family 7/05 at 102.00 AAA 7,462,418 Mortgage Revenue Bonds, 1995 Series B, Mortgage-Backed Securities Program, 6.700%, 7/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 24.2% 8,370 Alameda County, California, Certificates of Participation, 9/06 at 102.00 AAA 9,735,566 Series 1991, Alameda County Public Facilities Corporation, 6.000%, 9/01/21 (Pre-refunded to 9/01/06) - MBIA Insured 12,695 Antioch Area Public Facilities Financing Agency, California, 8/03 at 101.00 AAA 12,840,866 Special Tax Bonds, Community Facilities District No. 1989-1, 5.000%, 8/01/18 - FGIC Insured 13,175 California Pollution Control Financing Authority, Pollution 9/09 at 101.00 AAA 13,852,722 Control Revenue Refunding Bonds, Southern California Edison Company, Series 1999A, 5.450%, 9/01/29 - MBIA Insured 10,000 State of California, General Obligation Bonds, Series 2002, 10/12 at 100.00 AAA 10,222,000 5.000%, 10/01/32 - MBIA Insured 20,500 State of California, General Obligation Bonds, Series 2002 4/12 at 100.00 AAA 21,015,165 Refunding, 5.000%, 4/01/27 - AMBAC Insured 5,500 California Statewide Communities Development Authority, 7/04 at 102.00 AAA 5,887,695 Certificates of Participation, The Salk Institute for Biological Studies, San Diego, California, 6.200%, 7/01/24 - CONNIE LEE Insured Foothill/Eastern Transportation Corridor Agency, California, Toll Road Refunding Revenue Bonds, Series 1999: 22,985 0.000%, 1/15/24 - MBIA Insured 1/10 at 44.52 AAA 7,225,794 22,000 0.000%, 1/15/31 - MBIA Insured 1/10 at 29.11 AAA 4,473,700 50,000 0.000%, 1/15/37 - MBIA Insured 1/10 at 20.19 AAA 7,026,000 5,000 Garden Grove, California, Certificates of Participation, Financing 3/12 at 101.00 AAA 5,202,200 Project, Series 2002A, 5.125%, 3/01/32 - AMBAC Insured 5,000 Inland Empire Solid Waste Financing Authority, California, 8/06 at 102.00 AAA 5,756,150 Revenue Bonds, 1996 Series B, Landfill Improvement Financing Project, 6.000%, 8/01/16 (Alternative Minimum Tax) (Pre-refunded to 8/01/06) - FSA Insured 5,533 Moreno Valley Public Financing Authority, California, Assisted 1/12 at 105.00 Aaa 6,693,713 Living Housing Revenue Bonds, GNMA Collateralized - CDC Assisted Living Project, Series 2000A, 7.500%, 1/20/42 6,430 Ontario Redevelopment Financing Authority, San Bernardino 8/03 at 102.00 AAA 6,625,151 County, California, 1993 Revenue Bonds, Ontario Redevelopment Project No. 1, 5.850%, 8/01/22 - MBIA Insured Airports Commission of the City and County of San Francisco, California, San Francisco International Airport, Second Series Revenue Refunding Bonds, Issue 27A: 7,200 5.125%, 5/01/21 (Alternative Minimum Tax) - MBIA Insured 5/11 at 100.00 AAA 7,428,312 22,690 5.250%, 5/01/31 (Alternative Minimum Tax) - MBIA Insured 5/11 at 100.00 AAA 23,127,690 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 2.0% 1,500 Joint School District No. 28, Adams and Arapahoe Counties, 12/13 at 100.00 AAA 1,598,520 Colorado, General Obligation Bonds, Series 2003A, 5.125%, 12/01/21 - FSA Insured 5,630 E-470 Public Highway Authority, Arapahoe County, Colorado, 8/05 at 103.00 AAA 6,402,605 Capital Improvement Trust Fund Highway Revenue Bonds, E-470 Project, Vehicle Registration Fee Bonds, 6.150%, 8/31/26 (Pre-refunded to 8/31/05) - MBIA Insured 3,750 City and County of Denver, Colorado, Airport Revenue Bonds, 11/06 at 101.00 AAA 4,046,775 Series 1996D, 5.500%, 11/15/25 - MBIA Insured 12 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 1.4% $ 8,000 Washington Convention Center Authority, Washington, D.C., 10/08 at 101.00 AAA $ 8,274,480 Senior Lien Dedicated Tax Revenue Bonds, Series 1998, 5.000%, 10/01/21 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 6.3% 5,450 Florida Housing Finance Agency, GNMA/FNMA Single Family 7/04 at 102.00 AAA 5,644,347 Mortgage Revenue Bonds, 1994 Series B, 6.650%, 7/01/26 (Alternative Minimum Tax) 20,000 Lee County, Florida, Airport Revenue Bonds, Series 2000A, 10/10 at 101.00 AAA 21,424,000 5.750%, 10/01/25 (Alternative Minimum Tax) - FSA Insured 4,115 Housing Finance Authority of Miami-Dade County, Florida, 7/11 at 100.00 AAA 4,374,122 Multifamily Housing Revenue Bonds, Series 2001-2A, Monterey Pointe Apartments Project, 5.850%, 7/01/37 (Alternative Minimum Tax) - FSA Insured 7,000 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/12 at 100.00 AAA 7,219,940 Miami International Airport, Series 2002, 5.375%, 10/01/32 (Alternative Minimum Tax) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 6.8% State of Hawaii, Airports System Revenue Bonds, Refunding Series 2000B: 8,785 6.625%, 7/01/18 (Alternative Minimum Tax) - FGIC Insured 7/10 at 101.00 AAA 10,378,072 7,000 6.000%, 7/01/19 (Alternative Minimum Tax) - FGIC Insured 7/10 at 101.00 AAA 7,778,610 5,315 Department of Budget and Finance of the State of Hawaii, 6/03 at 102.00 AAA 5,446,493 Special Purpose Revenue Bonds, Hawaiian Electric Company, Inc. and Subsidiaries Projects, Series 1992, 6.550%, 12/01/22 (Alternative Minimum Tax) (Pre-refunded to 6/01/03) - MBIA Insured 16,180 Department of Budget and Finance of the State of Hawaii, 5/06 at 101.00 AAA 18,021,769 Special Purpose Revenue Bonds, Hawaiian Electric Company, Inc. and Subsidiaries Project, Series 1996A, 6.200%, 5/01/26 (Alternative Minimum Tax) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 19.1% 10,000 City of Chicago, Illinois, General Obligation Bonds, Project 7/05 at 102.00 AAA 11,201,100 Series 1995, 6.125%, 1/01/16 (Pre-refunded to 7/01/05) - AMBAC Insured 6,000 City of Chicago, Illinois, Chicago-O'Hare International Airport, 1/05 at 102.00 AAA 6,560,460 General Airport Second Lien Revenue Refunding Bonds, 1994 Series A, 6.375%, 1/01/12 - MBIA Insured 9,500 City of Chicago, Illinois, Chicago-O'Hare International Airport, 1/10 at 101.00 AAA 10,268,930 General Airport Second Lien Revenue Refunding Bonds, 1999 Series, 5.500%, 1/01/15 (Alternative Minimum Tax) - AMBAC Insured 6,825 Public Building Commission of Chicago, Illinois, Building Revenue 12/03 at 102.00 AAA 7,146,935 Bonds, Series 1993A, Board of Education of the City of Chicago, 5.750%, 12/01/18 (Pre-refunded to 12/01/03) - MBIA Insured 7,165 Illinois Development Finance Authority, Revenue Bonds, Bradley 8/09 at 101.00 AAA 7,748,231 University Project, Series 1999, 5.500%, 8/01/29 - AMBAC Insured 25,000 Illinois Health Facilities Authority, Revenue Bonds, Series 2000, 2/10 at 101.00 AAA 27,061,000 Iowa Health System, 5.875%, 2/15/30 - AMBAC Insured 15,785 State of Illinois, General Obligation Bonds, Illinois FIRST 4/12 at 100.00 AAA 16,587,036 Program, Series 2002, 5.250%, 4/01/27 - FSA Insured 13,275 State of Illinois, General Obligation Bonds, Illinois FIRST Program, 5/11 at 100.00 AAA 13,897,067 Series 2001, 5.250%, 5/01/26 - FSA Insured 18,000 Metropolitan Pier and Exposition Authority, Illinois, McCormick No Opt. Call AAA 5,856,840 Place Expansion Project Revenue Bonds, Series 2002A, 0.000%, 12/15/24 - MBIA Insured 10,000 University of Illinois, Certificates of Participation, Utility 8/11 at 100.00 AAA 10,559,600 Infrastructure Projects, Series 2001B, 5.250%, 8/15/21 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 1.7% 6,000 Jasper County, Indiana, Collateralized Pollution Control 7/03 at 100.00 AAA 6,229,440 Refunding Revenue Bonds, Northern Indiana Public Service Company Project, Series 1991, 7.100%, 7/01/17 - MBIA Insured 4,230 City of Rockport, Indiana, Pollution Control Revenue Refunding 9/03 at 100.00 AAA 4,374,243 Bonds, Indiana Michigan Power Company Project, Series B, 7.600%, 3/01/16 - FGIC Insured 13 Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 3.8% Kentucky Economic Development Finance Authority, Health System Revenue Bonds, Norton Healthcare Inc., Series 2000C: $ 6,345 0.000%, 10/01/27 - MBIA Insured 10/13 at 101.00 AAA $ 6,080,414 18,185 0.000%, 10/01/28 - MBIA Insured 10/13 at 101.00 AAA 17,381,223 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 3.2% 13,170 City of New Orleans, Louisiana, General Obligation Refunding 10/05 at 101.00 AAA 14,655,181 Bonds, Series 1995, 6.200%, 10/01/21 - AMBAC Insured 4,510 Orleans Levee District (A Political Subdivision of the State 12/05 at 103.00 AAA 5,106,222 of Louisiana), Levee Improvement Bonds, Series 1986, Serial and Term Trust Receipts, Series 1995A, 5.950%, 11/01/15 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 1.5% 8,000 Maine Health and Higher Educational Facilities Authority, 7/09 at 101.00 AAA 8,967,440 Revenue Bonds, Series 1999B, 6.000%, 7/01/29 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 1.3% 7,535 Maryland Transportation Authority, Baltimore-Washington 3/12 at 101.00 AAA 8,149,781 International Airport Parking Revenue Bonds, Series 2002B, 5.500%, 3/01/18 (Alternative Minimum Tax) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 1.1% 6,500 Massachusetts Bay Transportation Authority, Senior Sales 7/12 at 100.00 AAA 6,674,200 Tax Revenue Bonds, Series 2002A Refunding, 5.000%, 7/01/27 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 0.8% 4,750 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/09 at 102.00 AAA 4,975,103 Bonds, The Detroit Edison Company Pollution Control Bonds Project, Collateralized Series 1999A, 5.550%, 9/01/29 (Alternative Minimum Tax) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 0.0% 266 City of St. Louis Park, Minnesota, Single Family Residential 10/03 at 100.00 Aaa 266,293 Mortgage Revenue Refunding Bonds, GNMA Mortgage-Backed Securities Program, Series 1991-A, 7.250%, 4/20/23 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 2.2% 2,545 Harrison County Wastewater Management District, No Opt. Call AAA 3,503,193 Mississippi, Wastewater Treatment Facilities Revenue Refunding Bonds, Series 1991A, 8.500%, 2/01/13 - FGIC Insured 2,715 Harrison County Wastewater Management District, No Opt. Call AAA 3,634,190 Mississippi, Wastewater Treatment Facilities Revenue Refunding Bonds, Series 1991B, 7.750%, 2/01/14 - FGIC Insured 5,860 Mississippi Home Corporation, Single Family Mortgage Revenue 6/06 at 105.00 Aaa 6,512,042 Bonds, GNMA Collateralized Home Mortgage Program, Series 1996C, 7.600%, 6/01/29 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 0.9% 5,000 St. Louis Municipal Finance Corporation, Missouri, Leasehold 2/06 at 102.00 AAA 5,685,650 Revenue Bonds, Series 1996A, City Justice Center Project, 6.000%, 2/15/19 (Pre-refunded to 2/15/06) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 9.1% 33,700 Director of the State of Nevada, Department of Business and 1/10 at 100.00 AAA 35,733,121 Industry, Las Vegas Monorail Project Revenue Bonds, 1st Tier Series 2000, 5.375%, 1/01/40 - AMBAC Insured 5,720 Reno, Nevada, Sales and Room Tax Revenue Bonds, Reno 6/12 at 100.00 AAA 5,888,054 Transportation Rail Access Corridor Project, Senior Lien Series 2002, 5.125%, 6/01/32 - AMBAC Insured 13,185 Washoe County, Nevada, Hospital Refunding Revenue Bonds, 6/04 at 102.00 AAA 13,971,090 Washoe Medical Center, Inc. Project, Series 1994A, 6.000%, 6/01/19 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 0.7% 3,750 New Jersey Healthcare Facilities Financing Authority, Revenue 7/04 at 102.00 AAA 4,046,138 Bonds, Monmouth Medical Center Issue, Series C, 6.250%, 7/01/24 (Pre-refunded to 7/01/04) - FSA Insured 14 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 2.0% $ 6,000 City of Farmington, New Mexico, Pollution Control Refunding 10/03 at 100.00 BB $ 6,150,000 Revenue Bonds, Southern California Edison Company Four Corners Project, 1991 Series A, 7.200%, 4/01/21 5,750 City of Santa Fe, New Mexico, Revenue Bonds, Series 1994A, 6/04 at 100.00 AAA 6,072,403 6.300%, 6/01/24 (Pre-refunded to 6/01/04) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 15.5% 6,500 Metropolitan Transportation Authority, New York, Dedicated 11/12 at 100.00 AAA 6,681,155 Tax Fund Bonds, Series 2002A, 5.000%, 11/15/32 - FSA Insured The City of New York, New York, General Obligation Bonds, Fiscal 1991 Series A: 2,000 8.000%, 3/15/11 - FSA Insured 9/03 at 100.00 AAA 2,049,100 6,000 7.250%, 3/15/19 - FSA Insured 9/03 at 100.00 AAA 6,374,940 10,335 New York City Municipal Water Finance Authority, New York, 6/05 at 101.00 AAA 11,448,803 Water and Sewer System Revenue Bonds, Fiscal 1996 Series A, 6.000%, 6/15/25 (Pre-refunded to 6/15/05) - MBIA Insured 11,760 Dormitory Authority of the State of New York, Court Facilities 5/10 at 101.00 AAA 13,241,172 Lease Revenue Bonds, The City of New York Issue, Series 1999, 5.750%, 5/15/30 - AMBAC Insured 7,000 New York State Energy Research and Development Authority, 7/05 at 102.00 A+ 7,611,310 Facilities Refunding Revenue Bonds, Series 1995A, Consolidated Edison Company of New York, Inc. Project, 6.100%, 8/15/20 11,645 New York State Housing Finance Agency, Housing Project 5/06 at 102.00 AAA 12,769,558 Mortgage Revenue Bonds, 1996 Series A Refunding, 6.125%, 11/01/20 - FSA Insured 4,200 State of New York Mortgage Agency, Homeowner Mortgage 10/09 at 100.00 AAA 4,414,662 Revenue Bonds, Series 82, 5.550%, 10/01/19 (Alternative Minimum Tax) - MBIA Insured 12,000 New York State Medical Care Facilities Finance Agency, 2/05 at 102.00 AAA 13,421,640 New York, Hospital FHA-Insured Mortgage Revenue Bonds, Series 1994A, 6.900%, 8/15/34 (Pre-refunded to 2/15/05) - AMBAC Insured 15,000 Dormitory Authority of the State of New York, School Districts 10/12 at 100.00 AAA 16,895,250 Financing Program Revenue Bonds, Series 2002D, 5.500%, 10/01/17 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 3.6% 20,000 Mercer County, North Dakota, Pollution Control Refunding 1/05 at 102.00 AAA 21,755,600 Revenue Bonds, Second 1995 Series, Basin Electric Power Cooperative - Antelope Valley Unit 1 and Common Facilities, 6.050%, 1/01/19 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 0.9% 5,000 County of Lorain, Ohio, Health Facilities Revenue Bonds, 9/09 at 102.00 AAA 5,355,150 Series 1999A, Catholic Healthcare Partners, 5.500%, 9/01/29 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.5% 7,000 County of Allegheny, Pennsylvania, Airport Revenue Refunding 1/08 at 101.00 AAA 7,363,790 Bonds, Series 1997A, Pittsburgh International Airport, 5.250%, 1/01/16 (Alternative Minimum Tax) - MBIA Insured 7,250 Lehigh County Industrial Development Authority, Pollution 8/05 at 102.00 AAA 8,076,065 Control Revenue Refunding Bonds, 1995 Series A, Pennsylvania Power and Light Company Project, 6.150%, 8/01/29 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 0.9% 5,050 Rhode Island Port Authority and Economic Development 7/04 at 102.00 AAA 5,399,309 Corporation, Airport Revenue Bonds, 1994 Series A, 6.625%, 7/01/24 (Alternative Minimum Tax) - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 1.6% Knox County Health, Educational and Housing Facility Board, Tennessee, Hospital Revenue Bonds, Covenant Health, Series 2002A Refunding: 7,500 0.000%, 1/01/24 - FSA Insured 1/13 at 52.75 AAA 2,395,125 5,000 0.000%, 1/01/25 - FSA Insured 1/13 at 49.71 AAA 1,497,850 2,750 0.000%, 1/01/26 - FSA Insured 1/13 at 46.78 AAA 773,135 5,170 Health, Educational and Housing Facilities Board of the County 8/03 at 102.00 AAA 5,288,031 of Sullivan, Tennessee, Hospital Revenue Bonds, Series 1993, Holston Valley Health Care, Inc., 5.750%, 2/15/13 - MBIA Insured 15 Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 19.4% $ 8,000 Abilene Health Facilities Development Corporation, Texas, 9/05 at 102.00 AAA $ 8,805,360 Hospital Revenue Refunding and Improvement Bonds, Hendrick Medical Center Project, Series 1995C, 6.150%, 9/01/25 - MBIA Insured 5,275 City of Austin, Texas, Combined Utility System Revenue 11/07 at 100.00 AAA 5,438,683 Refunding Bonds, Series 1997, 5.125%, 11/15/20 - FSA Insured Harris County Hospital District, Texas, Refunding Revenue Bonds, Series 1990: 2,100 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 2,415,147 2,900 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 3,421,942 4,500 City of Houston, Texas, General Obligation Public Improvement 3/11 at 100.00 AAA 4,654,440 Bonds, Series 2001A, 5.000%, 3/01/22 - FSA Insured 4,685 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/10 at 100.00 AAA 4,923,654 Bonds, Series 2000A, 5.500%, 7/01/19 (Alternative Minimum Tax) - FSA Insured 17,000 City of Houston, Texas, Water and Sewer System Junior Lien No Opt. Call AAA 20,158,090 5.750%, 12/01/32 - FSA Insured 19,200 Jefferson County Health Facilities Development Corporation, 8/11 at 100.00 AAA 19,969,536 Texas, FHA-Insured Mortgage Revenue Bonds, Baptist Hospital of Southeast Texas, Series 2001, 5.400%, 8/15/31 - AMBAC Insured 6,000 Laredo Community College District, Texas, Limited Tax General 8/10 at 100.00 AAA 6,354,900 Obligation Bonds, Series 2001, 5.375%, 8/01/31 - AMBAC Insured 22,045 North Central Texas Health Facility Development Corporation, 8/12 at 101.00 AAA 22,742,063 Revenue Bonds, Children's Medical Center of Dallas, Series 2002, 5.250%, 8/15/32 - AMBAC Insured 17,429 Tarrant County Housing Finance Corporation, Texas, Multifamily 3/12 at 105.00 Aaa 20,005,529 Housing Revenue Bonds, Series 2001, GNMA Collateralized Mortgage Loan - Bardin Green Apartments Project, 6.600%, 9/20/42 - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 1.1% 6,000 Salt Lake City, Utah, Hospital Revenue Refunding Bonds, 5/03 at 100.00 AAA 6,866,160 IHC Hospitals, Inc., Series 1988A, 8.000%, 5/15/07 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 9.0% 10,730 Public Utility District No. 1 of Chelan County, Washington, 7/11 at 101.00 AAA 11,360,924 Chelan Hydro Consolidated System Revenue Bonds, Series 2001C Refunding, 5.650%, 7/01/32 (Alternative Minimum Tax) - MBIA Insured 4,710 Housing Authority of the City of Seattle, Washington, Low 9/11 at 102.00 AAA 5,277,695 Income Housing Assistance Revenue Bonds, Series 2000A, GNMA Collateralized Mortgage Loan - RHF/Esperanza Apartments Project, 6.125%, 3/20/42 (Alternative Minimum Tax) 15,025 Housing Authority of the City of Seattle, Washington, Low 11/11 at 105.00 AAA 17,517,046 Income Housing Assistance Revenue Bonds, Series 2000A, GNMA Collateralized Mortgage Loan - Park Place Project, 7.000%, 5/20/42 5,000 The City of Seattle, Washington, Municipal Light and Power 12/10 at 100.00 AAA 5,331,849 Revenue Bonds, Series 2000, 5.250%, 12/01/21 - FSA Insured 2,500 Washington Healthcare Facilities Authority, Revenue Bonds, 12/09 at 101.00 AAA 2,644,923 Series 1999, Providence Services, 5.375%, 12/01/19 - MBIA Insured 11,750 Washington Public Power Supply System, Nuclear Project No.1 7/08 at 102.00 AAA 12,664,973 Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/17 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 2.3% 12,845 West Virginia Water Development Authority, Infrastructure 10/10 at 100.00 AAA 13,874,140 Revenue Bonds, West Virginia Infrastructure and Jobs Development Council Program, 2000 Series A, 5.500%, 10/01/39 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ $ 940,208 Total Long-Term Investments (cost $829,658,002) - 147.7% 902,859,398 =============----------------------------------------------------------------------------------------------------------------------- 16 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENTS - 2.4% $ 3,200 Capital Projects Finance Authority, Florida, Continuing Care VMIG-1 $ 3,200,000 Retirement Community Revenue Bonds, Glenridge on Palmer Ranch, Series 2002C, Variable Rate Demand Bonds, 1.350%, 6/01/12+ 2,500 Chester County Industrial Development Authority, VMIG-1 2,500,000 Pennsylvania, Revenue Bonds, Archdiocese of Philadelphia, Series 2001, Variable Rate Demand Bonds, 1.350%, 7/01/31+ 6,700 Residential Care Facility for the Elderly Authority of Fulton A-1+ 6,700,000 County, Georgia, Refunding Revenue Bonds, Lenbrook Square Foundation, Inc., Variable Rate Demand Bonds, Series 1996, 1.400%, 1/01/18+ 2,100 Stockton, California, Health Facilities Revenue Bonds, Dameron VMIG-1 2,100,000 Hospital Association, Series 2002A, Variable Rate Demand Obligations, 1.350%, 12/01/32+ - ------------------------------------------------------------------------------------------------------------------------------------ $ 14,500 Total Short-Term Investments (cost $14,500,000) 14,500,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $844,158,002) - 150.1% 917,359,398 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.9% 11,983,443 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (52.0)% (318,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 611,342,841 ====================================================================================================================
All of the bonds in the portfolio, excluding temporary investments in short-term municipal securities, are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 17 Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 15.1% $ 3,850 Alabama Housing Finance Authority, Multifamily Housing 7/05 at 103.00 Aaa $ 4,083,657 Revenue Refunding Bonds, GNMA Collateralized - Royal Hills, 1995 Series F, 6.500%, 7/20/30 11,000 The Special Care Facilities Financing Authority of the City 5/05 at 102.00 AAA 11,918,830 of Birmingham, Alabama, Baptist Medical Centers Revenue Bonds, Series 1995-B, Baptist Health System, Inc., 5.875%, 11/15/20 - MBIA Insured The Special Care Facilities Financing Authority of the City of Birmingham, Alabama, Baptist Medical Centers Revenue Bonds, Series 1996-A, Baptist Health System, Inc.: 7,465 5.875%, 11/15/19 - MBIA Insured 11/06 at 102.00 AAA 8,288,539 1,750 5.875%, 11/15/26 - MBIA Insured 11/06 at 102.00 AAA 1,928,185 11,175 City Board of Education of the City of Hoover, Alabama, 2/11 at 100.00 AAA 11,798,900 Capital Outlay Tax Anticipation Warrants, Series 2001, 5.250%, 2/15/22 - MBIA Insured 36,020 Jefferson County, Alabama, Sewer Revenue Refunding 2/07 at 100.00 AAA 38,482,327 Warrants, Series 1997-A, 5.375%, 2/01/27 - FGIC Insured Jefferson County, Alabama, Sewer Revenue Capital Improvement Warrants, Series 1999-A: 20,605 5.000%, 2/01/33 - FGIC Insured 2/09 at 101.00 AAA 20,994,641 12,000 5.375%, 2/01/36 (Pre-refunded to 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 13,786,920 29,860 5.750%, 2/01/38 (Pre-refunded to 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 34,898,875 24,000 Jefferson County, Alabama, Sewer Revenue Capital 2/11 at 101.00 AAA 24,261,120 Improvement Warrants, Series 2001A, 5.000%, 2/01/41 - FGIC Insured 5,000 Jefferson County, Alabama, Sewer Revenue Capital 8/12 at 100.00 AAA 5,115,000 Improvement Warrants, Series 2002, 5.125%, 2/01/42 - FGIC Insured Jefferson County, Alabama, Sewer Revenue Capital Improvement Warrants, Series 2002D: 2,365 5.000%, 2/01/38 - FGIC Insured 8/12 at 100.00 AAA 2,395,414 14,800 5.000%, 2/01/42 - FGIC Insured 8/12 at 100.00 AAA 14,968,276 4,250 Shelby County Board of Education, Alabama, General Obligation 2/05 at 102.00 AAA 4,625,063 Warrants, Series 1995 Refunding, 5.875%, 2/01/17 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 3.6% 11,245 Alaska Housing Finance Corporation, General Mortgage 6/09 at 100.00 AAA 11,922,174 Revenue Bonds, 1999 Series A, 6.050%, 6/01/39 - MBIA Insured 11,460 Alaska Housing Finance Corporation, Governmental Purpose 12/05 at 102.00 AAA 11,863,507 Bonds, 1995 Series A, 5.875%, 12/01/30 - MBIA Insured 16,155 Alaska Housing Finance Corporation, Collateralized Bonds, 12/09 at 100.00 AAA 17,187,951 State Guaranteed, 1999A First Series, Veterans Mortgage Program, 6.250%, 6/01/39 (Alternative Minimum Tax) 3,190 Alaska Housing Finance Corporation, Collateralized Bonds, 12/09 at 100.00 AAA 3,411,801 State Guaranteed, 1999A-2 Series, Veterans Mortgage Program, 6.150%, 6/01/39 3,000 Alaska Student Loan Corporation, Student Loan Revenue 7/08 at 100.00 AAA 3,125,010 Bonds, 1998 Series A, 5.250%, 7/01/14 (Alternative Minimum Tax) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 0.8% 7,560 The Industrial Development Authority of the County of Pima, 7/03 at 102.50 AAA 7,989,030 Arizona, Industrial Development Lease Obligation Refunding Revenue Bonds, 1988 Series A, Irvington Project, 7.250%, 7/15/10 - FSA Insured 2,000 The Industrial Development Authority of the City of Yuma, 8/11 at 101.00 AAA 2,182,840 Arizona, Hospital Revenue Bonds, Series 2001, Yuma Regional Medical Center, 5.500%, 8/01/20 - FSA Insured 18 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 29.2% $ 6,135 California Housing Finance Agency, Housing Insured Revenue 8/04 at 102.00 AAA $ 6,357,332 Bonds, 1994 Series C, 6.250%, 8/01/25 - MBIA Insured California Rural Home Mortgage Finance Authority, Single Family Mortgage Revenue Bonds, Mortgage-Backed Securities Program, 1996 Series A: 565 7.550%, 11/01/26 (Alternative Minimum Tax) No Opt. Call AAA 599,968 460 7.750%, 5/01/27 (Alternative Minimum Tax) No Opt. Call AAA 490,953 4,500 State of California, General Obligation Bonds, 10/08 at 101.00 AAA 4,726,935 5.000%, 10/01/19 - FGIC Insured 10,000 Department of Veterans Affairs of the State of California, 6/12 at 101.00 AAA 10,552,000 Home Purchase Revenue Bonds, Series 2002A, 5.300%, 12/01/21 - AMBAC Insured 19,375 California Housing Finance Agency, Home Mortgage Revenue 11/10 at 55.40 AAA 7,180,956 Bonds, 2000 Series Y, 0.000%, 8/01/20 (Alternative Minimum Tax) - FSA Insured State of California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A: 30,000 5.375%, 5/01/17 - XLCA Insured 5/12 at 101.00 AAA 33,195,000 35,000 5.375%, 5/01/18 - AMBAC Insured 5/12 at 101.00 AAA 38,699,500 3,100 Campbell Union School District, Santa Clara County, 8/04 at 102.00 AAA 3,360,214 California, 1994 General Obligation Bonds, Series A, 6.250%, 8/01/19 (Pre-refunded to 8/01/04) - MBIA Insured 8,200 Castaic Lake Water Agency, California, Refunding Revenue 8/04 at 102.00 AAA 8,817,296 Certificates of Participation, Water System Improvement Projects, Series 1994A, 6.300%, 8/01/20 - MBIA Insured 20,000 Cucamonga County Water District, California, Certificates 9/11 at 101.00 AAA 20,681,000 of Participation, 2000 Water Shares Purchase, 5.125%, 9/01/35 - FGIC Insured 5,500 Fallbrook Union High School District, San Diego County, 9/04 at 102.00 AAA 5,984,110 California, 1994 General Obligation Bonds, Series A, 6.250%, 9/01/19 (Pre-refunded to 9/01/04) - MBIA Insured 5,000 Long Beach Bond Finance Authority, California, Lease Revenue 11/11 at 101.00 AAA 5,257,750 Refunding Bonds, The Aquarium of the South Pacific, 5.250%, 11/01/30 - AMBAC Insured 9,000 County of Orange, California, Refunding Recovery Bonds, 6/05 at 102.00 AAA 9,874,350 1995 Series A, 5.750%, 6/01/15 - MBIA Insured 12,500 County of Orange, California, 1996 Recovery Certificates of 7/06 at 102.00 AAA 14,187,625 Participation, Series A, 6.000%, 7/01/26 - MBIA Insured Port of Oakland, California, Revenue Bonds, Series 2002L: 13,205 5.000%, 11/01/22 (Alternative Minimum Tax) - FGIC Insured 11/12 at 100.00 AAA 13,592,567 6,000 5.000%, 11/01/23 (Alternative Minimum Tax) - FGIC Insured 11/12 at 100.00 AAA 6,148,260 Poway Redevelopment Agency, California, Tax Allocation Bonds, Series 2001, Paguay Redevelopment Project: 15,000 5.200%, 6/15/30 - AMBAC Insured 12/11 at 101.00 AAA 15,724,950 5,000 5.125%, 6/15/33 - AMBAC Insured 12/11 at 101.00 AAA 5,192,150 19,300 Sacramento Power Authority, California, Cogeneration Project 7/06 at 102.00 AAA 21,864,198 Revenue Bonds, 1995 Series, 5.875%, 7/01/15 - MBIA Insured 6,500 City of Salinas, California, Housing Facility Refunding Revenue 7/04 at 102.00 AAA 6,757,205 Bonds, Series 1994A, GNMA Collateralized - Villa Serra Project, 6.600%, 7/20/30 10,000 Airports Commission of the City and County of San Francisco, 5/06 at 101.00 AAA 10,571,800 California, San Francisco International Airport, Second Series Revenue Bonds, Issue 13B, 5.500%, 5/01/26 (Alternative Minimum Tax) - MBIA Insured 18,710 Airports Commission of the City and County of San 5/11 at 100.00 AAA 19,108,149 Francisco, California, San Francisco International Airport, Second Series Revenue Refunding Bonds, Issue 27A, 5.250%, 5/01/26 (Alternative Minimum Tax) - MBIA Insured 11,500 San Francisco Bay Area Rapid Transit District, California, Sales 7/11 at 100.00 AAA 11,833,960 Tax Revenue Bonds, Series 2001, 5.125%, 7/01/36 - AMBAC Insured 66,685 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 29,017,978 County, California, Senior Lien Toll Road Revenue Bonds, 0.000%, 1/01/21 San Joaquin Hills Transportation Corridor Agency, California, Toll Road Refunding Revenue Bonds, Series 1997A: 31,615 5.250%, 1/15/30 - MBIA Insured 1/07 at 102.00 AAA 33,234,953 21,500 0.000%, 1/15/32 - MBIA Insured No Opt. Call AAA 4,742,255 19 Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) $ 12,525 San Jose Redevelopment Agency, California, Merged Area 8/10 at 101.00 AAA $13,203,605 Redevelopment Project, Series 2002, 5.000%, 8/01/20 - MBIA Insured 11,000 Santa Ana Financing Authority, California, Police Administration No Opt. Call AAA 13,489,190 and Housing Facility Lease Revenue Bonds, Series 1994A, 6.250%, 7/01/24 - MBIA Insured 5,500 Santa Clara County Financing Authority, California, Lease 11/04 at 102.00 AAA 6,080,030 Revenue Bonds, VMC Facility Replacement Project, 1994 Series A, 6.750%, 11/15/20 (Pre-refunded to 11/15/04) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 5.8% 10,000 City and County of Denver, Colorado, Airport System Revenue 11/11 at 100.00 AAA 10,876,200 Refunding Bonds, Series 2001A, 5.500%, 11/15/15 (Alternative Minimum Tax) - FGIC Insured 10,545 City and County of Denver, Colorado, Airport Revenue Bonds, 11/06 at 101.00 AAA 11,379,531 Series 1996D, 5.500%, 11/15/25 - MBIA Insured 35,995 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 12,572,334 Bonds, Series 1997B, 0.000%, 9/01/23 - MBIA Insured 30,800 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 102.00 AAA 34,631,212 Bonds, Series 2000A, 5.750%, 9/01/35 - MBIA Insured 11,800 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 74.80 AAA 6,377,192 Bonds, Series 2000B, 0.000%, 9/01/15 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.2% 2,500 State of Connecticut Health and Educational Facilities 7/04 at 101.00 AAA 2,695,400 Authority, Revenue Bonds, Choate Rosemary Hall Issue, Series A, 7.000%, 7/01/25 (Pre-refunded to 7/01/04) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.7% 4,100 District of Columbia Housing Finance Agency, GNMA 6/03 at 101.00 AAA 4,136,572 Collateralized Single Family Mortgage Revenue Bonds, Series 1990B, 7.100%, 12/01/24 (Alternative Minimum Tax) 4,840 Metropolitan Washington D.C. Airports Authority, Airport 10/11 at 101.00 AAA 5,190,803 System Revenue Bonds, Series 2001A, 5.500%, 10/01/19 (Alternative Minimum Tax) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 5.1% 2,225 Florida Housing Finance Agency, Home Ownership Revenue No Opt. Call AAA 2,538,881 Refunding Bonds, GNMA Collateralized, 1987 Series G1, 8.595%, 11/01/17 4,425 Jacksonville Economic Development Commission, Florida, 11/12 at 100.00 AAA 4,750,901 Healthcare Facilities Revenue Bonds, Mayo Clinic, Series 2001C, 5.500%, 11/15/36 - MBIA Insured 35,920 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA 37,048,606 International Airport, Series 2002, 5.375%, 10/01/32 (Alternative Minimum Tax) - FGIC Insured Miami-Dade County, Florida, Aviation Revenue Bonds, Series 2002A, Miami International Airport: 20,000 5.000%, 10/01/33 (Alternative Minimum Tax) - FSA Insured 10/12 at 100.00 AAA 20,096,200 2,150 5.125%, 10/01/35 (Alternative Minimum Tax) - FSA Insured 10/12 at 100.00 AAA 2,171,844 - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 0.4% 5,000 The Glynn-Brunswick Memorial Hospital Authority, Revenue 8/06 at 102.00 AAA 5,489,200 Anticipation Certificates, Southeast Georgia Health Systems Project, Series 1996, 5.250%, 8/01/13 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 2.1% 24,250 Department of Budget and Finance of the State of Hawaii, 5/06 at 101.00 AAA 27,010,378 Special Purpose Revenue Bonds, Hawaiian Electric Company, Inc. and Subsidiaries Project, Series 1996A, 6.200%, 5/01/26 (Alternative Minimum Tax) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.5% 2,065 Idaho Housing Agency, Single Family Mortgage Bonds, No Opt. Call Aa1 2,279,554 1994 Series B, 6.750%, 7/01/22 1,925 Idaho Housing Agency, Single Family Mortgage Bonds, No Opt. Call Aa1 2,179,196 1994 Series B2, 6.900%, 7/01/26 (Alternative Minimum Tax) 2,450 Idaho Housing Agency, Single Family Mortgage Bonds, FHA or 1/05 at 102.00 Aaa 2,549,397 VA Guarantor, 1995 Series B Senior Lien, 6.600%, 7/01/27 (Alternative Minimum Tax) 20 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 9.0% $ 12,500 City of Chicago, Illinois, Chicago-O'Hare International Airport, 1/04 at 102.00 AAA $ 13,004,750 General Airport Second Lien Revenue Refunding Bonds, 1993 Series C, 5.000%, 1/01/18 - MBIA Insured City of Chicago, Illinois, Chicago-O'Hare International Airport, Second Lien Passenger Facility Charge Revenue Bonds, Series 2001E Refunding: 4,615 5.500%, 1/01/17 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 4,970,493 4,870 5.500%, 1/01/18 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 5,214,260 5,000 Community Unit School District No. 204, Indian Prairie, 12/11 at 100.00 AAA 5,429,650 Counties of DuPage and Will, Illinois, General Obligation Bonds, Series 2001, 5.000%, 12/30/15 - FGIC Insured Board of Governors of State Colleges and Universities, Eastern Illinois University, Auxiliary Facilities System Revenue Bonds, Series 1989: 12,355 0.000%, 10/01/09 - MBIA Insured 10/04 at 74.08 AAA 8,911,909 16,470 0.000%, 4/01/16 (Pre-refunded to 10/01/04) - MBIA Insured 10/04 at 47.07 AAA 7,619,516 10,000 Illinois Development Finance Authority, Revenue Bonds, 5/08 at 101.00 AAA 10,598,700 Series 1998A, Provena Health, 5.500%, 5/15/21 - MBIA Insured 2,095 Illinois Educational Facilities Authority, Revenue Bonds, Robert 12/07 at 100.00 Aaa 2,333,977 Morris College, Series 2000, 5.800%, 6/01/30 - MBIA Insured 2,180 Illinois Educational Facilities Authority, Revenue Bonds, DePaul 10/10 at 101.00 AAA 2,407,265 University, Series 2000, 5.500%, 10/01/19 - AMBAC Insured 7,000 Illinois Health Facilities Authority, Revenue Bonds, 6/08 at 101.00 Aaa 7,212,240 Series 1998A, Hospital Sisters Services, Inc. Obligated Group, 5.000%, 6/01/18 - MBIA Insured Illinois Health Facilities Authority, Revenue Bonds, Series 1999, Alexian Brothers Health System: 4,500 5.000%, 1/01/19 - FSA Insured 1/09 at 101.00 AAA 4,631,040 12,000 5.125%, 1/01/28 - FSA Insured 1/09 at 101.00 AAA 12,189,240 22,410 State of Illinois, General Obligation Bonds, Illinois FIRST 2/12 at 100.00 AAA 23,223,707 Program, Series 2002, 5.125%, 2/01/27 - FGIC Insured 4,560 County of Macon, Illinois, Revenue Bonds, Millikin University, 10/05 at 100.00 AAA 5,080,205 Series 1995, 6.250%, 10/01/16 (Pre-refunded to 10/01/05) - AMBAC Insured 5,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, 6/04 at 102.00 AAA 5,402,800 McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1994D, 6.750%, 6/01/25 (Pre-refunded to 6/01/04) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 4.6% 3,250 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 3,402,653 Revenue Refunding Bonds, Series 2002A, Waterworks Project, 5.250%, 7/01/33 - MBIA Insured 20,000 Indianapolis Local Public Improvement Bond Bank, Indiana, No Opt. Call AAA 5,371,800 Revenue Bonds, Series 1999E, 0.000%, 2/01/28 - AMBAC Insured 11,020 IPS Multi-School Building Corporation, Indiana, First Mortgage 7/13 at 100.00 AAA 11,702,799 Bonds, Series 2003, 5.000%, 7/15/19 - MBIA Insured 12,250 City of Lawrenceburg, Indiana, Pollution Control Revenue 10/03 at 101.00 AAA 12,429,585 Refunding Bonds, Indiana Michigan Power Company Project, Series D, 7.000%, 4/01/15 - FGIC Insured 9,545 New Prairie School Building Corporation, LaPorte and 7/04 at 102.00 AAA 10,427,531 St. Joseph Counties, Indiana, First Mortgage Bonds, Series 1994, 7.200%, 7/15/21 (Pre-refunded to 7/15/04) - FSA Insured 10,000 The Trustees of Purdue University, Indiana, Purdue University 1/12 at 100.00 AAA 10,564,600 Student Fee Bonds, Series O, 5.000%, 7/01/19 - MBIA Insured Whitley County Middle School Building Corporation, Columbia City, Indiana, First Mortgage Bonds, Series 2003: 3,705 5.000%, 7/15/16 (WI, settling 5/01/03) - FSA Insured 7/13 at 100.00 AAA 4,033,893 2,490 5.000%, 1/15/18 (WI, settling 5/01/03) - FSA Insured 7/13 at 100.00 AAA 2,669,878 - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.4% 5,000 University of Kansas Hospital Authority, Health Facilities 9/09 at 100.00 AAA 5,409,150 Revenue Bonds, KU Health System, Series 1999A, 5.650%, 9/01/29 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.1% 12,980 Louisville and Jefferson Counties Metropolitan Sewer District, 11/11 at 101.00 AAA 13,980,498 Kentucky, Sewer and Drainage System Revenue Bonds, 2001 Series A, 5.500%, 5/15/34 - MBIA Insured 21 Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 1.6% $ 5,000 Parish of De Soto, State of Louisiana, Pollution Control 9/09 at 102.00 AAA $ 5,698,300 Revenue Refunding Bonds, Cleco Utility Group Inc. Project, Series 1999, 5.875%, 9/01/29 - AMBAC Insured 7,690 Orleans Levee District (A Political Subdivision of the State 12/05 at 103.00 AAA 8,706,618 of Louisiana), Levee Improvement Bonds, Series 1986, 5.950%, 11/01/15 - FSA Insured 3,000 Parish of St. Charles, State of Louisiana, Pollution Control 6/03 at 100.00 AAA 3,114,600 Revenue Bonds, Louisiana Power and Light Company Project, Series 1991, 7.500%, 6/01/21 (Alternative Minimum Tax) - FSA Insured 3,500 Hospital Service District No. 1 of the Parish of Tangipahoa, 2/04 at 102.00 AAA 3,674,230 State of Louisiana, Hospital Revenue Bonds, Series 1994, 6.250%, 2/01/24 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 5.8% 22,500 Massachusetts Development Finance Authority, Revenue 1/12 at 101.00 AAA 23,728,275 Bonds, Series 2002A, WGBH Educational Foundation, 5.375%, 1/01/42 - AMBAC Insured 8,400 Massachusetts Health and Educational Facilities Authority, 10/05 at 102.00 AAA 9,254,532 Revenue Bonds, Berkshire Health Systems Issue, Series D, 6.000%, 10/01/13 - MBIA Insured 2,960 Massachusetts Health and Educational Facilities Authority, 7/03 at 101.00 AAA 3,029,915 Revenue Bonds, South Shore Hospital Issue, Series D, 6.500%, 7/01/22 - MBIA Insured 4,865 Massachusetts Housing Finance Agency, Housing Revenue 12/05 at 102.00 AAA 5,153,640 Bonds, 1995 Series A Refunding, 6.100%, 12/01/16 - MBIA Insured 34,815 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 35,111,624 System Revenue Bonds, 1997 Senior Series A, 5.000%, 1/01/37 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 7.4% 6,000 City of Detroit, Michigan, General Obligation Bonds, 2001 10/11 at 100.00 AAA 6,573,360 Series A-1, 5.375%, 4/01/18 - MBIA Insured 5,490 School District of the City of Detroit, Wayne County, Michigan, No Opt. Call AAA 6,720,529 School Building and Site Improvement Bonds, Unlimited Tax General Obligation, Series 2001A, 6.000%, 5/01/29 - FSA Insured City of Detroit, Michigan, Sewage Disposal System Revenue Bonds, Series 1999-A: 15,825 5.750%, 7/01/26 (Pre-refunded to 1/01/10) - FGIC Insured 1/10 at 101.00 AAA 18,540,728 20,000 5.875%, 7/01/27 (Pre-refunded to 1/01/10) - FGIC Insured 1/10 at 101.00 AAA 23,582,000 8,700 City of Detroit, Michigan, Water Supply System Senior Lien 7/07 at 101.00 AAA 8,851,119 Revenue Bonds, Series 1997-A, 5.000%, 7/01/27 - MBIA Insured 8,000 Gaylord Community Schools, Counties of Ostego and Antrim, 5/07 at 37.75 AAA 2,748,320 State of Michigan, 1992 School Building and Site Refunding Bonds, 0.000%, 5/01/21 (Pre-refunded to 5/01/07) - MBIA Insured Grand Rapids Community College, Kent County, Michigan, General Obligation Bonds, Series 2003 Refunding: 1,050 5.250%, 5/01/17 - AMBAC Insured 5/13 at 100.00 AAA 1,158,696 955 5.250%, 5/01/18 - AMBAC Insured 5/13 at 100.00 AAA 1,046,432 1,085 5.250%, 5/01/20 - AMBAC Insured 5/13 at 100.00 AAA 1,172,201 27,000 Okemos Public School, County of Ingham, State of Michigan, 5/06 at 34.54 AAA 8,827,380 1991 School Building and Site Bonds, Series I, 0.000%, 5/01/21 (Pre-refunded to 5/01/06) - MBIA Insured 10,000 Charter County of Wayne, Michigan, Airport Hotel Revenue 12/11 at 101.00 AAA 10,518,700 Bonds, Detroit Metropolitan Wayne County Airport, Limited Tax General Obligation, Series 2001A, 5.250%, 12/01/25 - MBIA Insured 6,850 Charter County of Wayne, Michigan, Airport Revenue Bonds, 12/08 at 101.00 AAA 7,299,018 Detroit Metropolitan Wayne County Airport, Series 1998A, 5.375%, 12/01/15 (Alternative Minimum Tax) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.2% 2,805 Minnesota Housing Finance Agency, Single Family Mortgage 1/04 at 102.00 AA+ 2,889,543 Bonds, 1994 Series M, 6.700%, 7/01/26 (Alternative Minimum Tax) 13,020 Housing and Redevelopment Authority of the City of 12/11 at 102.00 Aaa 13,382,867 Saint Paul, Minnesota, Multifamily Housing Revenue Bonds, GNMA Collateralized Mortgage Loan - Marian Center-GEAC Project, Series 2001A, 3.870%, 6/20/43 - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 0.1% 1,840 Missouri Housing Development Commission, Single Family 7/03 at 101.00 AAA 1,861,234 Mortgage Revenue Bonds, GNMA Mortgage-Backed Securities Program, 1991 Series C, 6.900%, 7/01/18 22 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 6.7% Director of the State of Nevada, Department of Business and Industry, Las Vegas Monorail Project Revenue Bonds, 1st Tier Series 2000: $ 15,000 5.625%, 1/01/34 - AMBAC Insured 1/10 at 102.00 AAA $ 16,555,650 13,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 13,784,290 2,160 Nevada Housing Division, Single Family Mortgage Bonds, 4/04 at 102.00 Aa2 2,241,605 1994 Senior Series B-1, 6.700%, 10/01/17 1,675 Nevada Housing Division, Single Family Mortgage Bonds, 4/04 at 102.00 Aa2 1,724,295 1994 Senior Series B-2, 6.950%, 10/01/26 (Alternative Minimum Tax) 40,285 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 42,412,451 Series 2002, 5.375%, 6/01/32 - FGIC Insured 10,000 Reno, Nevada, Sales and Room Tax Revenue Bonds, Reno 6/12 at 100.00 AAA 10,340,100 Transportation Rail Access Corridor Project, Senior Lien Series 2002, 5.125%, 6/01/27 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 7.3% 8,685 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 9,380,582 General Revenue Bonds, Series 1998A, 5.300%, 12/01/19 - FSA Insured 10,000 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 11,080,900 Water and Sewer System Revenue Bonds, Fiscal 1996 Series B, 5.750%, 6/15/26 - MBIA Insured 15,000 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 16,050,000 Water and Sewer System Revenue Bonds, Fiscal 1997 Series A, 5.375%, 6/15/26 - FSA Insured Dormitory Authority of the State of New York, City University System Consolidated Third General Resolution Revenue Bonds, 1994 Series 2: 3,000 6.250%, 7/01/19 (Pre-refunded to 7/01/04) - MBIA Insured 7/04 at 100.00 AAA 3,179,880 6,400 6.750%, 7/01/24 (Pre-refunded to 7/01/04) - MBIA Insured 7/04 at 102.00 AAA 6,947,264 5,000 New York State Urban Development Corporation, Correctional 1/07 at 102.00 AAA 5,745,150 Capital Facilities Revenue Bonds, Series 7, 5.700%, 1/01/27 (Pre-refunded to 1/01/07) - MBIA Insured 15,600 The Port Authority of New York and New Jersey, Consolidated 1/05 at 101.00 AAA 16,846,752 Bonds, Ninety-Seventh Series, 6.650%, 1/15/23 (Alternative Minimum Tax) - FGIC Insured 25,000 Triborough Bridge and Tunnel Authority, New York, Subordinate 11/12 at 100.00 AAA 25,696,750 Revenue Refunding Bonds, Series 2002E, 5.000%, 11/15/32 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 0.4% 5,000 North Carolina Municipal Power Agency Number 1, Catawba 1/13 at 100.00 AAA 5,528,500 Electric Revenue Bonds, Series 2003A, 5.250%, 1/01/16 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 3.7% 20,100 County of Lucas, Ohio, Hospital Revenue Bonds, Series 1999, 11/09 at 101.00 AAA 20,973,144 ProMedica Healthcare Obligated Group, 5.375%, 11/15/39 - AMBAC Insured 3,865 Ohio Housing Finance Agency, Residential Mortgage Revenue 3/05 at 102.00 Aaa 4,070,000 Bonds, GNMA Mortgage-Backed Securities Program, 1995 Series A-2, 6.625%, 3/01/26 (Alternative Minimum Tax) Ohio Air Quality Development Authority, Air Quality Development Revenue Refunding Bonds, JMG Funding Limited Partnership Project, Series 1994: 13,750 6.375%, 1/01/29 (Alternative Minimum Tax) - AMBAC Insured 10/04 at 102.00 AAA 14,832,400 8,000 6.375%, 4/01/29 (Alternative Minimum Tax) - AMBAC Insured 10/04 at 102.00 AAA 8,629,760 - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 1.5% 12,380 Oklahoma Housing Finance Agency, GNMA Collateralized No Opt. Call AAA 13,649,074 Single Family Mortgage Revenue Bonds, Series 1987A, 7.997%, 8/01/18 (Alternative Minimum Tax) 5,245 Oklahoma Industries Authority, Revenue Bonds, Oklahoma 2/11 at 100.00 Aaa 5,449,240 Medical Research Foundation Project, Series 2001, 5.250%, 2/01/21 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 0.2% 2,855 State of Oregon Housing and Community Services Department, 7/05 at 102.00 Aa2 2,988,129 Mortgage Revenue Bonds, Single Family Mortgage Program, 1995 Series A, 6.450%, 7/01/26 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 0.6% 7,120 Lehigh County General Purpose Authority, Pennsylvania, Hospital 7/04 at 102.00 AAA 7,684,046 Revenue Bonds, Lehigh Valley Hospital, Series 1994A, 6.250%, 7/01/22 (Pre-refunded to 7/01/04) - MBIA Insured 23 Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.2% $ 2,000 Puerto Rico Highway and Transportation Authority, Transportation 7/13 at 100.00 AAA $ 2,202,700 Revenue Bonds, Series 2003G, 5.250%, 7/01/19 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 1.9% 2,195 Providence Housing Development Corporation, Rhode Island, 7/04 at 102.00 AAA 2,283,305 Mortgage Revenue Refunding Bonds, Series 1994A, FHA-Insured Mortgage Loan - Barbara Jordan Apartments Project, 6.750%, 7/01/25 - MBIA Insured 20,475 Rhode Island Depositors Economic Protection Corporation, 2/11 at 100.00 AAA 23,208,003 Special Obligation Refunding Bonds, 1992 Series B, 5.250%, 8/01/21 (Pre-refunded to 2/01/11) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 5.0% 10,000 Beaufort County, South Carolina, Tax Increment Bonds, 12/12 at 100.00 AAA 10,287,300 New River Redevelopment Project, Series 2002, 5.000%, 6/01/27 - MBIA Insured Piedmont Municipal Power Agency, South Carolina, Electric Revenue Bonds, 1988 Refunding Series: 9,190 0.000%, 1/01/13 (Pre-refunded to 1/01/10) - AMBAC Insured 1/10 at 79.60 AAA 5,811,848 12,810 0.000%, 1/01/13 - AMBAC Insured No Opt. Call AAA 8,562,332 17,300 South Carolina Jobs-Economic Development Authority, 8/03 at 102.00 AAA 17,807,582 Hospital Revenue Bonds, South Carolina Baptist Hospital, Series 1993D, 5.550%, 8/01/21 - AMBAC Insured South Carolina Jobs-Economic Development Authority, Hospital Revenue Bonds, Oconee Memorial Hospital, Inc., Series 1995: 3,000 6.150%, 3/01/15 - CONNIE LEE Insured 3/05 at 102.00 AAA 3,285,120 600 6.150%, 3/01/25 - CONNIE LEE Insured 3/05 at 102.00 AAA 656,520 8,000 South Carolina Jobs-Economic Development Authority, 11/12 at 100.00 AAA 8,381,840 Industrial Revenue Bonds, South Carolina Electric and Gas Company Project, Series 2002A, 5.200%, 11/01/27 - AMBAC Insured 10,000 South Carolina Jobs-Economic Development Authority, 11/12 at 100.00 AAA 10,443,200 Industrial Revenue Bonds, South Carolina Electric and Gas Company Project, Series 2002B, 5.450%, 11/01/32 (Alternative Minimum Tax) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 0.5% 6,455 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/11 at 100.00 AAA 6,883,483 Revenue Bonds, Series 2001A, 5.500%, 3/01/18 (Alternative Minimum Tax) - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 17.3% 22,650 Brazos River Authority, Texas, Revenue Refunding Bonds, 5/08 at 102.00 AAA 24,040,937 Houston Industries Incorporated Project, Series 1998C, 5.125%, 5/01/19 (Optional put 5/01/08) - AMBAC Insured 11,500 Capital Area Housing Finance Corporation, Texas, Single Family 4/12 at 106.00 AAA 12,195,980 Mortgage Revenue Bonds, 2002 Series A-2 Refunding, 3.500%, 4/01/35 (Alternative Minimum Tax) - AMBAC Insured 11,460 Dallas County Utility and Reclamation District, Texas, Unlimited 2/05 at 100.00 AAA 12,245,698 Tax Refunding Bonds, Series 1999B, 5.875%, 2/15/29 - AMBAC Insured 25,000 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 AAA 25,808,500 Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 - MBIA Insured Harris County, Texas, Toll Road Senior Lien Revenue Bonds, Series 1989: 9,000 0.000%, 8/15/18 (Pre-refunded to 8/15/09) - AMBAC Insured 8/09 at 53.84 AAA 3,977,820 39,000 0.000%, 8/15/19 (Pre-refunded to 8/15/09) - AMBAC Insured 8/09 at 50.26 AAA 16,091,010 7,280 0.000%, 8/15/20 (Pre-refunded to 8/15/09) - AMBAC Insured 8/09 at 46.91 AAA 2,807,459 5,085 0.000%, 8/15/21 (Pre-refunded to 8/15/09) - AMBAC Insured 8/09 at 43.80 AAA 1,828,312 6,570 City of Houston, Texas, General Obligation Public Improvement 3/11 at 100.00 AAA 7,101,053 Bonds, Series 2001A, 5.375%, 3/01/19 - FSA Insured 4,170 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/10 at 100.00 AAA 4,457,105 Bonds, Series 2000B, 5.500%, 7/01/30 - FSA Insured 8,225 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/07 at 100.00 AAA 8,407,266 Bonds, Series 1997 Refunding, 5.125%, 7/01/22 - FGIC Insured 17,500 City of Houston, Texas, Hotel Occupancy Tax and Special Revenue 9/11 at 100.00 AAA 18,211,550 Bonds, Series 2001B, Convention Project, 5.250%, 9/01/33 - AMBAC Insured 24 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 12,826 Houston Housing Finance Corporation, Texas, Multifamily 9/11 at 105.00 Aaa $14,552,764 Housing Revenue Bonds, RRG Apartments Project, GNMA Collateralized Mortgage, Series 2001, 6.350%, 3/20/42 23,865 Jefferson County Health Facilities Development Corporation, 8/11 at 100.00 AAA 24,966,608 Texas, FHA-Insured Mortgage Revenue Bonds, Baptist Hospital of Southeast Texas, Series 2001, 5.500%, 8/15/41 - AMBAC Insured 8,205 Lower Colorado River Authority, Texas, Refunding and 5/11 at 100.00 AAA 8,515,559 Improvement Revenue Bonds, Series 2001A, 5.000%, 5/15/21 - MBIA Insured Port of Houston Authority of Harris County, Texas, Unlimited Tax General Obligation Port Improvement Bonds, Series 2001B: 3,205 5.500%, 10/01/18 (Alternative Minimum Tax) - FGIC Insured 10/11 at 100.00 AAA 3,435,536 3,375 5.500%, 10/01/19 (Alternative Minimum Tax) - FGIC Insured 10/11 at 100.00 AAA 3,600,686 7,205 City of San Antonio, Texas, Airport System Improvement 7/11 at 101.00 AAA 7,807,554 Revenue Bonds, Series 2001, 5.375%, 7/01/15 (Alternative Minimum Tax) - FGIC Insured Tarrant County Health Facilities Development Corporation, Texas, Health Resources System Revenue Bonds, Series 1997A: 2,900 5.250%, 2/15/22 - MBIA Insured 2/08 at 102.00 AAA 2,990,770 6,500 5.000%, 2/15/26 - MBIA Insured 2/08 at 101.00 AAA 6,546,020 12,330 Texas Department of Housing and Community Affairs, 9/06 at 102.00 AAA 12,955,748 Single Family Mortgage Revenue Bonds, 1996 Series D, 6.250%, 9/01/28 (Alternative Minimum Tax) - MBIA Insured 1,840 Ysleta Independent School District, Texas, Public Facility 11/09 at 100.00 AAA 1,960,134 Corporation Lease Revenue Refunding Bonds, Series 2001, 5.375%, 11/15/24 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 1.3% 10,000 Intermountain Power Agency, Utah, Power Supply Revenue 7/13 at 100.00 AAA 10,858,800 Bonds, Series 2003A Refunding, 5.000%, 7/01/16 - FSA Insured 5,685 Utah Housing Finance Agency, Multifamily Housing Refunding 7/03 at 101.00 AA 5,751,003 Bonds, 1992 Issue A, FHA-Insured Mortgage Loans, 7.400%, 7/01/24 675 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/04 at 102.00 Aaa 694,427 1994 Issue D, Federally Insured or Guaranteed Mortgage Loans, 6.750%, 1/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.8% 10,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 10,387,500 Mortgage Bonds, 2001 Series H, Subseries H-1, 5.375%, 7/01/36 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 1.7% 3,195 Kitsap County, Washington, Limited Tax General Obligation 7/10 at 100.00 AAA 3,460,952 Bonds, Series 2000, 5.500%, 7/01/25 - AMBAC Insured 4,250 Public Utility District No. 1 of Snohomish County, Washington, 7/03 at 101.00 AAA 5,371,744 Generation System Revenue Bonds, Series 1989, 6.650%, 1/01/16 - FGIC Insured 4,345 Washington Public Power Supply System, Nuclear Project 7/07 at 102.00 AAA 4,682,519 No. 1 Refunding Revenue Bonds, Series 1997A, 5.125%, 7/01/17 - AMBAC Insured 8,500 Washington Public Power Supply System, Nuclear Project 7/03 at 102.00 AAA 8,725,929 No. 3 Refunding Revenue Bonds, Series 1993B, 5.600%, 7/01/17 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 0.8% 10,000 County Commission of Harrison County, West Virginia, Solid 5/03 at 102.00 AAA 10,234,099 Waste Disposal Revenue Bonds, West Penn Power Company Harrison Station Project, Series B, 6.300%, 5/01/23 (Alternative Minimum Tax) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 2.8% 1,765 Wisconsin Housing and Economic Development Authority, 7/03 at 101.00 AAA 1,785,791 Housing Revenue Bonds, 1992 Series A, 6.850%, 11/01/12 - MBIA Insured 15,000 Wisconsin Health and Educational Facilities Authority, Revenue 2/07 at 102.00 AAA 16,257,899 Bonds, Series 1997, Marshfield Clinic Project, 5.750%, 2/15/27 - MBIA Insured 18,000 Wisconsin Health and Educational Facilities Authority, 8/07 at 102.00 AAA 18,983,339 Revenue Bonds, Series 1997, Aurora Health Care, Inc., 5.250%, 8/15/17 - MBIA Insured 25 Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WYOMING - 0.6% $ 7,780 Wyoming Community Development Authority, Housing 12/07 at 101.50 AAA $ 8,103,958 Revenue Bonds, 1997 Series 6, 5.600%, 6/01/29 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ $ 2,010,291 Total Long-Term Investments (cost $1,775,195,543) - 148.0% 1,935,998,924 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 2.1% 9,650 Illinois Health Facilities Authority, Revenue Bonds, University A-1+ 9,650,000 of Chicago Hospitals, Series 1994, Variable Rate Demand Obligations, 1.450%, 8/15/26 - MBIA Insured+ 4,500 Kansas Development Finance Authority, Revenue Bonds, A-1 4,500,000 Village Shalom Obligated Group, Series BB, Variable Rate Demand Bonds, 1.350%, 11/15/28+ 4,500 Michigan Strategic Fund, Limited Obligation Revenue Bonds, A-1 4,500,000 Series A, Detroit Symphony Orchestra Project, Variable Rate Demand Bonds, 1.350%, 6/01/31+ 10,000 New York City Transitional Finance Authority, New York, A-1+ 10,000,000 Recovery Notes, Series 1, Subseries 1C, Variable Rate Demand Obligations, 1.400%, 11/01/22+ - ------------------------------------------------------------------------------------------------------------------------------------ $ 28,650 Total Short-Term Investments (cost $28,650,000) 28,650,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $1,803,845,543) - 150.1% 1,964,648,924 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.9% 23,864,922 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (52.0)% (680,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 1,308,513,846 ====================================================================================================================
All of the bonds in the portfolio, excluding temporary investments in short-term municipal securities, are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. (WI) Security purchased on a when-issued basis. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 26 Nuveen Premier Insured Municipal Income Fund, Inc. (NIF) Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 0.4% $ 1,135 Birmingham Waterworks and Sewer Board, Alabama, Water 1/13 at 100.00 AAA $ 1,220,897 and Sewer Revenue Bonds, Series 2002B, 5.250%, 1/01/20 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 1.0% 2,890 Alaska Housing Finance Corporation, Governmental Purpose 12/05 at 102.00 AAA 2,992,942 Bonds, 1995 Series A, 5.875%, 12/01/24 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 36.6% Abag Finance Authority for Nonprofit Corporations, Insured Certificates of Participation, Children's Hospital Medical Center of Northern California, Series 1999: 6,750 5.875%, 12/01/19 - AMBAC Insured 12/09 at 101.00 AAA 7,749,068 10,000 6.000%, 12/01/29 - AMBAC Insured 12/09 at 101.00 AAA 11,555,700 4,755 Antioch Area Public Facilities Financing Agency, California, 8/09 at 101.00 AAA 5,322,176 Special Tax Bonds, Community Facilities District No. 1989-1, 5.700%, 8/01/22 - AMBAC Insured 3,250 California Pollution Control Financing Authority, Pollution 4/11 at 102.00 AAA 3,543,930 Control Refunding Revenue Bonds, Pacific Gas and Electric Company, 1996A Remarketed, 5.350%, 12/01/16 (Alternative Minimum Tax) - MBIA Insured 10,070 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 AAA 10,263,143 Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 - MBIA Insured 580 Housing Authority of the County of Kern, California, Guaranteed No Opt. Call AAA 643,214 Tax-Exempt Mortgage Obligations, 1994 Series A, Subseries I, 7.150%, 12/30/24 (Alternative Minimum Tax) 425 Housing Authority of the County of Kern, California, Guaranteed No Opt. Call AAA 454,597 Tax-Exempt Mortgage Obligations, 1994 Series A, Subseries III, 7.450%, 6/30/25 (Alternative Minimum Tax) 5,450 La Verne - Grand Terrace Housing Finance Agency, California, No Opt. Call AAA 7,991,280 Single Family Residential Mortgage Revenue Bonds, 1984 Series A, 10.250%, 7/01/17 5,840 Lancaster Redevelopment Agency, California, Tax Allocation 8/03 at 101.00 AAA 5,966,261 Refunding Bonds, Lancaster Residential Redevelopment Project Area, Issue of 1992, 6.100%, 8/01/19 - MBIA Insured 11,080 City of Lodi, California, Electric System Revenue Certificates 1/09 at 40.71 AAA 3,792,019 of Participation, 1999 Series B, 0.000%, 1/15/24 (Pre-refunded to 1/15/09) - MBIA Insured 5,000 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 6,997,300 County, California, 1995 Revenue Refunding Bonds, Project No. 1, 7.400%, 8/01/25 - MBIA Insured 8,880 City of Pomona, California, Single Family Mortgage Revenue No Opt. Call AAA 12,093,139 Refunding Bonds, GNMA and FHLMC Mortgage-Backed Securities, Series 1990B, 7.500%, 8/01/23 10,305 City of San Bernardino, California, Single Family Mortgage No Opt. Call AAA 13,818,284 Revenue Refunding Bonds, GNMA Mortgage-Backed Securities, Series 1990A, 7.500%, 5/01/23 14,755 County of San Bernardino, California, Single Family Mortgage No Opt. Call AAA 19,259,997 Revenue Bonds, GNMA Mortgage-Backed Securities, 1988 Series A, 8.300%, 9/01/14 (Alternative Minimum Tax) 4,300 Airports Commission of the City and County of San Francisco, 5/11 at 100.00 AAA 4,462,540 California, San Francisco International Airport, Second Series Revenue Refunding Bonds, Issue 27A, 5.125%, 5/01/19 (Alternative Minimum Tax) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 3.5% 2,500 City and County of Denver, Colorado, Airport System Revenue 11/12 at 100.00 AAA 2,685,125 Refunding Bonds, Series 2002E, 5.500%, 11/15/18 (Alternative Minimum Tax) - FGIC Insured 6,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 102.00 AAA 6,728,820 Bonds, Series 2000A, 5.750%, 9/01/29 - MBIA Insured 1,225 Summit School District RE-1, Summit County, Colorado, 12/04 at 100.00 AAA 1,330,620 General Obligation Improvement Bonds, Series 1994, 6.700%, 12/01/14 (Pre-refunded to 12/01/04) - FGIC Insured 27 Nuveen Premier Insured Municipal Income Fund, Inc. (NIF) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 4.7% $ 4,145 City of Miami, Florida, General Obligation Bonds, Series 2002, 1/12 at 100.00 AAA $ 4,314,821 5.000%, 1/01/22 - MBIA Insured 9,985 Orange County, Florida, Sales Tax Revenue Bonds, Series 2002B, 1/13 at 100.00 AAA 10,393,786 5.125%, 1/01/32 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 2.2% 6,500 Medical Center Hospital Authority, Georgia, Revenue 8/09 at 102.00 AAA 6,924,125 Anticipation Certificates, Columbus Regional Healthcare System, Inc. Project, Series 1999, 5.500%, 8/01/25 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 3.9% 8,030 State of Hawaii, Airports System Revenue Bonds, Refunding 7/10 at 101.00 AAA 9,423,687 Series 2000B, 6.500%, 7/01/15 (Alternative Minimum Tax) - FGIC Insured 2,250 Department of Budget and Finance of the State of Hawaii, 1/09 at 101.00 AAA 2,553,548 Special Purpose Revenue Bonds, Hawaiian Electric Company, Inc. and Subsidiaries Project, Series 1999D, 6.150%, 1/01/20 (Alternative Minimum Tax) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 20.2% 4,000 Bridgeview, Illinois, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 4,158,920 5.000%, 12/01/22 - FGIC Insured 10,000 City of Chicago, Illinois, General Obligation Refunding Bonds, 1/10 at 101.00 AAA 10,802,100 Series 2000D, 5.500%, 1/01/35 - FGIC Insured 8,200 Board of Education of the City of Chicago, Illinois, General No Opt. Call AAA 10,031,142 Obligation Lease Certificates, 1992 Series A, 6.250%, 1/01/15 - MBIA Insured 23,110 Illinois Development Finance Authority, Local Government No Opt. Call Aaa 12,444,273 Program Bonds, Elgin School District No. U46, Kane, Cook and DuPage Counties, Series 2002, 0.000%, 1/01/17 - FSA Insured 10,010 Illinois Development Finance Authority, Revenue Bonds, 2/05 at 102.00 AAA 10,516,806 Catholic Health Partners Services, Series 1995A, 5.300%, 2/15/18 - CONNIE LEE Insured 10,150 Onterie Center Housing Finance Corporation (An Illinois Not 7/03 at 101.50 AAA 10,429,328 For Profit Corporation), Mortgage Revenue Refunding Bonds, Series 1992A, FHA-Insured Mortgage Loan - Onterie Center Project, 7.050%, 7/01/27 - MBIA Insured 3,225 Regional Transportation Authority, Cook, DuPage, Kane, No Opt. Call AAA 4,303,311 Lake, McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1992A, 9.000%, 6/01/09 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 1.8% 5,375 Indiana Health Facility Financing Authority, Hospital Revenue 5/03 at 101.00 AAA 5,447,616 Refunding and Improvement Bonds, Series 1992, Community Hospitals Projects, 6.400%, 5/01/12 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 1.7% 5,000 Maryland Transportation Authority, Baltimore-Washington 3/12 at 101.00 AAA 5,193,150 International Airport Parking Revenue Bonds, Series 2002B, 5.125%, 3/01/21 (Alternative Minimum Tax) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 4.4% 2,250 City of Kalamazoo Hospital Finance Authority, Michigan, 5/06 at 102.00 AAA 2,496,015 Hospital Revenue Refunding and Improvement Bonds, Bronson Methodist Hospital, Series 1996, 5.750%, 5/15/16 - MBIA Insured 6,500 Michigan Higher Education Student Loan Authority, Revenue No Opt. Call AAA 7,032,285 Bonds, 2000 Series XII-T, 5.300%, 9/01/10 (Alternative Minimum Tax) - AMBAC Insured 3,810 Michigan State Housing Development Authority, Limited 8/12 at 102.00 Aaa 4,016,159 Obligation Multifamily Housing Revenue Bonds, GNMA Collateralized Program - Cranbrook Apartments, Series 2001A, 5.500%, 2/20/43 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 2.1% 4,860 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 5,387,893 Minnesota, Airport Revenue Bonds, Series 2001B, 5.750%, 1/01/15 (Alternative Minimum Tax) - FGIC Insured 1,225 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102.00 AAA 1,273,192 1995 Series D, 5.950%, 2/01/18 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 3.3% 7,495 Industrial Development Authority of Jefferson County, 8/07 at 100.00 AAA 10,126,794 Missouri, Housing Revenue Bonds, Richardson Road Apartments Project, Series 1985, 11.000%, 12/15/15 (Pre-refunded to 8/15/07) 28 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 7.7% $ 10,000 Clark County, Nevada, Airport System Subordinated Lien 7/11 at 100.00 AAA $10,468,600 Revenue Bonds, Series 2001B, 5.125%, 7/01/21 - FGIC Insured 7,990 Reno, Nevada, Sales and Room Tax Revenue Bonds, Reno 6/12 at 100.00 AAA 8,266,214 Transportation Rail Access Corridor Project, Senior Lien Series 2002, 5.250%, 6/01/41 - AMBAC Insured 5,050 Washoe County, Nevada, Gas and Water Facilities Refunding 7/03 at 101.50 AAA 5,229,275 Revenue Bonds, Sierra Pacific Power Company Project, Series 1987 Remarketed, 6.300%, 12/01/14 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 2.9% 7,645 Metropolitan Transportation Authority, New York, Transit No Opt. Call AAA 8,902,450 Facilities Revenue Bonds, Series J, 9.100%, 7/01/05 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 3.9% 2,620 Oklahoma Housing Finance Agency, GNMA Collateralized No Opt. Call AAA 2,888,576 Single Family Mortgage Revenue Bonds, Series 1987A, 7.997%, 8/01/18 (Alternative Minimum Tax) 5,440 Sapulpa Municipal Authority, Oklahoma, Capital Improvement 7/10 at 101.00 AAA 6,062,554 Revenue Bonds, Series 2000 Refunding, 5.625%, 7/01/20 - FSA Insured 3,000 Tulsa Industrial Authority, Oklahoma, Multifamily Housing 11/05 at 103.00 Aaa 3,170,010 Revenue Refunding Bonds, GNMA Collateralized - Country Club of Woodland Hills Development, Series 1995, 6.250%, 11/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 9.7% Oregon Health Sciences University, Revenue Bonds, Series 2002A: 5,000 5.000%, 7/01/26 - MBIA Insured 1/13 at 100.00 AAA 5,164,250 19,000 5.000%, 7/01/32 - MBIA Insured 1/13 at 100.00 AAA 19,534,280 5,000 Oregon Health, Housing, Educational and Cultural Facilities 3/12 at 105.00 Aaa 5,510,100 Authority, Revenue Bonds, GNMA Mortgaged-Backed Securities Program, Necanicum Village Assisted Living Project, 2001 Series A, 5.000%, 6/20/42 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 1.9% 5,000 Health and Educational Facilities Board of the Metropolitan 11/09 at 101.00 AAA 5,987,000 Government of Nashville and Davidson County, Tennessee, Revenue Bonds, Ascension Health Credit Group, Series 1999A, 6.000%, 11/15/30 (Pre-refunded to 11/15/09) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 7.1% 490 Corpus Christi Housing Finance Corporation, Texas, Single 7/03 at 101.00 AAA 500,971 Family Mortgage Senior Revenue Refunding Bonds, Series 1991A, 7.700%, 7/01/11 - MBIA Insured 12,500 Cities of Dallas and Ft. Worth, Texas, Dallas-Ft. Worth 11/09 at 100.00 AAA 12,921,125 International Airport, Joint Revenue Refunding and Improvement Bonds, Series 2001A, 5.500%, 11/01/35 (Alternative Minimum Tax) - FGIC Insured 570 City of El Paso Property Finance Authority, Inc., Texas, Single 6/03 at 102.00 Aaa 587,801 Family Mortgage Revenue Bonds, GNMA Mortgage-Backed Securities Program, Series 1992A, 8.700%, 12/01/18 (Alternative Minimum Tax) 7,600 City of San Antonio, Texas, Airport System Improvement 7/11 at 101.00 AAA 8,191,432 Revenue Bonds, Series 2001, 5.375%, 7/01/16 (Alternative Minimum Tax) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.7% 2,000 Clearfield City, Utah, Sales Tax Revenue Bonds, Series 2003, 7/13 at 100.00 AAA 2,054,120 5.000%, 7/01/28 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 1.2% 3,635 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 3,791,378 Mortgage Bonds, 2001 Series C, Subseries C-2, 5.450%, 7/01/23 (Alternative Minimum Tax) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 23.9% 5,000 Public Utility District No. 1 of Chelan County, Washington, 7/11 at 101.00 AAA 5,262,450 Chelan Hydro Consolidated System Revenue Bonds, Series 2001B, 5.600%, 1/01/36 (Alternative Minimum Tax) - MBIA Insured 1,570 Sedro-Wooley School District No. 101, Clark County, 12/12 at 100.00 Aaa 1,706,041 Washington, General Obligation Bonds, Series 2002, 5.250%, 12/01/18 - FSA Insured 29 Nuveen Premier Insured Municipal Income Fund, Inc. (NIF) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON (continued) $ 5,000 Energy Northwest, Washington, Nuclear Project No. 1 Electric 7/12 at 100.00 AAA $ 5,629,950 Revenue Bonds, Series 2002A Refunding, 5.500%, 7/01/15 - MBIA Insured Bellevue School District No. 405, King County, Washington, General Obligation Bonds, Series 2002: 12,060 5.000%, 12/01/19 - FGIC Insured 12/12 at 100.00 AAA 12,789,992 12,785 5.000%, 12/01/20 - FGIC Insured 12/12 at 100.00 AAA 13,476,413 Pierce County School District No. 343, Dieringer, Washington, General Obligation Bonds, Series 2003 Refunding: 3,435 5.250%, 12/01/17 - FSA Insured 6/13 at 100.00 Aaa 3,783,893 2,755 5.250%, 12/01/18 - FSA Insured 6/13 at 100.00 Aaa 3,013,281 2,990 5.250%, 12/01/19 - FSA Insured 6/13 at 100.00 Aaa 3,249,711 4,715 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 10/11 at 100.00 AAA 5,115,492 5.625%, 4/01/17 (Alternative Minimum Tax) - FGIC Insured Port of Seattle, Washington, Special Facility Revenue Bonds, Terminal 18 Project, Series 1999C: 755 6.000%, 9/01/29 (Pre-refunded to 3/01/10) 3/10 at 101.00 AAA 890,175 (Alternative Minimum Tax) - MBIA Insured 895 6.000%, 9/01/29 (Alternative Minimum Tax) - MBIA Insured 3/10 at 101.00 AAA 970,171 1,265 City of Tacoma, Washington, General Obligation Bonds, 12/12 at 100.00 AAA 1,349,806 Series 2002, 5.000%, 12/01/18 - FGIC Insured 4,200 City of Tacoma, Washington, Solid Waste Utility Revenue 12/11 at 100.00 AAA 4,469,808 Bonds, Series 2001 Refunding, 5.250%, 12/01/20 - AMBAC Insured 5,000 State of Washington, General Obligation Bonds, 1/11 at 100.00 AAA 5,219,199 2001 Series C, 5.250%, 1/01/26 - FSA Insured 6,990 Washington Public Power Supply System, Nuclear Project No.1 7/08 at 102.00 AAA 7,534,310 Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/17 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 2.0% 6,000 Mason County, West Virginia, Pollution Control Revenue 6/03 at 101.00 AAA 6,147,060 Bonds, Appalachian Power Company Project, Series I, 6.850%, 6/01/22 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ $ 429,265 Total Long-Term Investments (cost $417,851,005) - 146.8% 455,977,891 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 3.1% 3,000 Alachua County Health Facilities Authority, Florida, VMIG-1 3,000,000 Continuing Care Retirement Community Revenue Bonds, Oak Hammock at the University of Florida Project, Series 2002A, Variable Rate Demand Obligations, 1.350%, 10/01/32+ 3,000 Capital Projects Finance Authority, Florida, Continuing Care VMIG-1 3,000,000 Retirement Community Revenue Bonds, Glenridge on Palmer Ranch, Series 2002C, Variable Rate Demand Bonds, 1.350%, 6/01/12+ 1,700 Idaho Health Facilities Authority, Revenue Bonds, St. Luke's VMIG-1 1,700,000 Regional Medical Center Project, Series 1995, Variable Rate Demand Bonds, 1.350%, 5/01/22+ 2,000 University of Toledo, Ohio, General Receipts, Refunding A-1 2,000,000 Series 2000, Variable Rate Demand Bonds, 1.400%, 6/01/32 - FGIC Insured+ - ------------------------------------------------------------------------------------------------------------------------------------ $ 9,700 Total Short-Term Investments (cost $9,700,000) 9,700,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $427,551,005) - 149.9% 465,677,891 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.9% 5,976,129 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.8)% (161,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 310,654,020 ==================================================================================================================== All of the bonds in the portfolio, excluding temporary investments in short-term municipal securities, are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 30
Nuveen Insured Premium Income Municipal Fund 2 (NPX) Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 3.8% Jefferson County, Alabama, Sewer Revenue Warrants, Series 1997D: $ 5,000 5.700%, 2/01/20 (Pre-refunded to 2/01/07) - FGIC Insured 2/07 at 101.00 AAA $ 5,576,900 4,830 5.750%, 2/01/22 (Pre-refunded to 2/01/07) - FGIC Insured 2/07 at 101.00 AAA 5,512,189 3,970 5.750%, 2/01/22 - FGIC Insured 2/07 at 101.00 AAA 4,435,086 2,500 City of Mobile, Alabama, General Obligation Refunding 2/06 at 102.00 AAA 2,828,075 Warrants, Series 1996, 5.750%, 2/15/16 (Pre-refunded to 2/15/06) - AMBAC Insured 2,000 City of Scottsboro, Alabama, General Obligation School 7/06 at 102.00 AAA 2,246,220 Warrants, Series 1996-B, 5.750%, 7/01/14 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 8.2% 31,200 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 24.23 AAA 5,276,544 Toll Road Refunding Revenue Bonds, Series 1999, 0.000%, 1/15/34 - MBIA Insured 6,850 County of Orange, California, 1996 Recovery Certificates 7/06 at 102.00 AAA 7,774,819 of Participation, Series A, 6.000%, 7/01/26 - MBIA Insured 10,000 Orange County Water District, California, Revenue Certificates 8/13 at 100.00 AAA 10,278,900 of Participation, Series 2003B, 5.000%, 8/15/34 - MBIA Insured 13,000 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 AAA 14,910,220 Improvement Revenue Bonds, Series 1999, Solid Waste and Redevelopment Projects, 5.800%, 12/01/19 - AMBAC Insured San Leandro Housing Finance Corporation, California, Mortgage Revenue Refunding Bonds, Series 1993A, FHA-Insured Mortgage Loan - Ashland Village Apartments Section 8 Assisted Project: 1,205 6.550%, 1/01/12 - MBIA Insured 7/03 at 101.00 AAA 1,219,086 5,100 6.650%, 1/01/25 - MBIA Insured 7/03 at 101.00 AAA 5,157,885 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 4.1% Colorado Health Facilities Authority, Hospital Revenue Bonds, Poudre Valley Health Care, Inc., Series 1999A: 2,480 5.625%, 12/01/19 - FSA Insured 12/09 at 101.00 Aaa 2,685,369 3,500 5.750%, 12/01/23 - FSA Insured 12/09 at 101.00 Aaa 3,805,900 12,955 City and County of Denver, Colorado, Airport System Revenue 11/05 at 102.00 AAA 14,311,259 Bonds, Series 1995A, 5.600%, 11/15/20 - MBIA Insured 1,325 El Paso County, Colorado, Certificates of Participation, 12/12 at 100.00 AAA 1,362,762 Series 2002B, Detention Facility Project, 5.000%, 12/01/27 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.7% 3,540 District of Columbia Housing Finance Agency, Collateralized 6/03 at 102.00 AAA 3,601,100 Single Family Mortgage Revenue Bonds, Series 1990C-4, 6.350%, 12/01/24 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 0.6% 3,000 Valdosta and Lowndes County Hospital Authority, Georgia, 10/12 at 101.00 AAA 3,136,680 South Georgia Medical Center Project Revenue Certificates, Series 2002, 5.200%, 10/01/22 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 8.9% Hawaii County, Hawaii, General Obligation Bonds, Series 2003A: 2,375 5.000%, 7/15/19 - FSA Insured 7/13 at 100.00 AAA 2,530,254 1,620 5.000%, 7/15/21 - FSA Insured 7/13 at 100.00 AAA 1,703,900 State of Hawaii, Airports System Revenue Bonds, Refunding Series 2000B: 6,105 6.100%, 7/01/16 (Alternative Minimum Tax) - FGIC Insured 7/10 at 101.00 AAA 6,925,695 9,500 6.625%, 7/01/17 (Alternative Minimum Tax) - FGIC Insured 7/10 at 101.00 AAA 11,222,730 31 Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HAWAII (continued) $ 24,000 Department of Budget and Finance of the State of Hawaii, 7/10 at 101.00 AAA $ 25,930,080 Special Purpose Revenue Bonds, Hawaiian Electric Company, Inc. and Subsidiary Projects, Refunding Series 2000, 5.700%, 7/01/20 (Alternative Minimum Tax) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.3% 1,620 Idaho Housing and Finance Association, Single Family 1/08 at 101.50 AAA 1,742,407 Mortgage Bonds, 1998 Series E, 5.450%, 7/01/18 (Alternative Minimum Tax) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 19.1% 2,500 City of Aurora, Kane, DuPage, Kendall and Will Counties, 1/05 at 100.00 AAA 2,683,625 Illinois, General Obligation Corporate Purpose Bonds, Series 1996, 5.800%, 1/01/14 (Pre-refunded to 1/01/05) - MBIA Insured 1,500 City of Chicago, Illinois, General Obligation Bonds, Project 7/05 at 102.00 AAA 1,680,165 Series 1995, 6.125%, 1/01/16 (Pre-refunded to 7/01/05) - AMBAC Insured 25,585 City of Chicago, Illinois, General Obligation Bonds, Project 1/06 at 102.00 AAA 26,106,422 and Refunding Series 1996B, 5.125%, 1/01/25 - FGIC Insured 8,370 City of Chicago, Illinois, Chicago Midway Airport Revenue 1/07 at 101.00 AAA 9,282,916 Bonds, Series 1996A, 5.625%, 1/01/17 - MBIA Insured City of Chicago, Illinois, Chicago Midway Airport Revenue Bonds, Series 1994A: 280 6.100%, 1/01/08 (Alternative Minimum Tax) - MBIA Insured 1/04 at 102.00 AAA 291,234 710 6.250%, 1/01/14 (Alternative Minimum Tax) - MBIA Insured 1/04 at 102.00 AAA 742,532 4,000 City of Chicago, Illinois, Motor Fuel Tax Revenue Bonds, 7/13 at 100.00 AAA 4,166,520 Series 2003A, 5.000%, 1/01/22 - AMBAC Insured 8,235 City of Chicago, Illinois, Chicago-O'Hare International Airport, 1/05 at 102.00 AAA 9,004,231 General Airport Second Lien Revenue Refunding Bonds, 1994 Series A, 6.375%, 1/01/15 - MBIA Insured 10,000 City of Chicago, Illinois, Chicago-O'Hare International Airport, 1/10 at 101.00 AAA 10,695,000 General Airport Second Lien Revenue Refunding Bonds, 1999 Series, 5.500%, 1/01/17 (Alternative Minimum Tax) - AMBAC Insured 4,115 Chicago Park District, Illinois, General Obligation Limited Tax 7/11 at 100.00 AAA 4,533,784 Park Bonds, Series 2001C, 5.500%, 1/01/18 - FGIC Insured 9,680 Illinois Educational Facilities Authority, Chicago, Revenue 6/08 at 100.00 AAA 9,992,954 Columbia College Bonds, Series 1998, 5.000%, 12/01/20 - MBIA Insured 1,950 Illinois Health Facilities Authority, Health Facilities Refunding No Opt. Call AAA 2,394,620 Revenue Bonds, SSM Health Care, Series 1992AA, 6.550%, 6/01/14 - MBIA Insured Illinois Health Facilities Authority, Revenue Bonds, Lutheran General Health System, Series 1993A: 4,355 6.125%, 4/01/12 - FSA Insured No Opt. Call AAA 5,044,397 5,000 6.250%, 4/01/18 - FSA Insured No Opt. Call AAA 6,203,400 2,815 Illinois Housing Development Authority, Housing Development 1/04 at 102.00 A+ 2,896,325 Bonds, 1993 Series A, 6.000%, 7/01/18 6,335 Metropolitan Pier and Exposition Authority, Illinois, McCormick 6/03 at 102.00 AAA 6,504,335 Place Expansion Project Bonds, Series 1992A, 6.500%, 6/15/22 (Pre-refunded to 6/15/03) - AMBAC Insured 955 City of Peoria, City of Moline and City of Freeport, Illinois, 10/05 at 105.00 AAA 1,024,400 GNMA Collateralized Single Family Mortgage Revenue Bonds, Series 1995A, 7.600%, 4/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 1.2% 1,000 Ft. Wayne South Side School Building Corp., Allen County, 1/04 at 102.00 AAA 1,055,440 Indiana, First Mortgage Bonds, Series 1994, 6.125%, 1/15/12 (Pre-refunded to 1/15/04) - MBIA Insured 5,285 Logansport School Building Corporation, Indiana, First Mortgage 7/11 at 100.00 AAA 5,515,162 Bonds, Series 2001, 5.125%, 1/15/22 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.2% 270 City of Olathe, Kansas and Labette Counties, Kansas, GNMA 2/05 at 105.00 Aaa 289,732 Collateralized Single Family Mortgage Refunding Revenue Bonds, Series A-I, 8.100%, 8/01/23 (Alternative Minimum Tax) 655 Sedgwick and Shawnee Counties, Kansas, GNMA 11/04 at 105.00 Aaa 700,483 Collateralized Single Family Mortgage Refunding Revenue Bonds, Series A-II, 8.050%, 5/01/24 (Alternative Minimum Tax) 32 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.2% $ 23,340 Kentucky Economic Development Finance Authority, Health No Opt. Call AAA $ 6,306,235 System Revenue Bonds, Norton Healthcare Inc., Series 2000B, 0.000%, 10/01/28 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 1.7% 195 Massachusetts Housing Finance Agency, Housing Project 10/03 at 102.00 AAA 199,146 Revenue Bonds, 1993 Series A Refunding, 6.150%, 10/01/15 - AMBAC Insured 4,780 Massachusetts Housing Finance Agency, Single Family 6/06 at 102.00 AAA 5,035,539 Housing Revenue Bonds, Series 48, 6.350%, 6/01/26 (Alternative Minimum Tax) - MBIA Insured 3,600 Massachusetts Housing Finance Agency, Single Family Housing 6/07 at 102.00 AAA 3,804,192 Revenue Bonds, Series 53, 6.150%, 12/01/29 (Alternative Minimum Tax) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 4.8% 4,705 Board of Control of Grand Valley State University, Michigan, 12/10 at 100.00 AAA 5,071,378 General Revenue Bonds, Series 2000, 5.250%, 12/01/20 - FGIC Insured 10,000 Michigan State Housing Development Authority, Rental Housing 4/07 at 102.00 AAA 10,586,000 Revenue Bonds, 1997 Series A, 6.000%, 4/01/16 (Alternative Minimum Tax) - AMBAC Insured 10,000 County of Monroe, Michigan, Pollution Control Revenue Bonds, 9/03 at 102.00 AAA 10,346,400 The Detroit Edison Company Project, Series CC-1992, 6.550%, 9/01/24 (Alternative Minimum Tax) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.4% 7,435 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102.00 AAA 7,727,493 1995 Series D, 5.950%, 2/01/18 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 1.5% 1,000 Industrial Development Authority of the City of Hazelwood, 9/06 at 102.00 AAA 1,065,920 Missouri, Multifamily Housing Revenue Refunding Bonds, GNMA Collateralized - The Lakes Apartments Project, Series 1996, 6.000%, 9/20/16 4,500 Land Clearance for Redevelopment Authority of Kansas City, 12/05 at 102.00 AAA 5,037,750 Missouri, Lease Revenue Bonds, Municipal Auditorium and Muehlebach Hotel Redevelopment Projects, Series 1995A, 5.900%, 12/01/18 - FSA Insured 1,000 Kansas City Municipal Assistance Corporation, Missouri, 1/06 at 101.00 AAA 1,099,170 Leasehold Revenue Bonds, Capital Improvement Series 1996B, 5.750%, 1/15/14 - AMBAC Insured 1,030 Missouri Housing Development Commission, Multifamily 12/06 at 102.00 AAA 1,095,683 Housing Revenue Bonds, Brookstone Village Apartments Project, 1996 Series A, 6.000%, 12/01/16 (Alternative Minimum Tax) - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 7.9% 5,000 Clark County, Nevada, Industrial Development Revenue Bonds, 6/03 at 101.00 AAA 5,180,500 Nevada Power Company Project, Series 1992A, 6.700%, 6/01/22 (Alternative Minimum Tax) - FGIC Insured 5,000 Clark County, Nevada, Industrial Development Revenue 7/10 at 102.00 AAA 5,461,900 Bonds, Southwest Gas Corporation, Series 2000C, 5.950%, 12/01/38 (Alternative Minimum Tax) - AMBAC Insured 5,500 Director of the State of Nevada, Department of Business 1/10 at 102.00 AAA 6,062,925 and Industry, Las Vegas Monorail Project Revenue Bonds, 1st Tier Series 2000, 5.625%, 1/01/32 - AMBAC Insured Las Vegas Convention and Visitors Authority, Nevada, Revenue Bonds, Series 1999: 2,695 5.750%, 7/01/15 - AMBAC Insured 7/09 at 101.00 AAA 3,104,074 6,035 5.750%, 7/01/16 - AMBAC Insured 7/09 at 101.00 AAA 6,941,155 6,500 5.750%, 7/01/17 - AMBAC Insured 7/09 at 101.00 AAA 7,455,175 3,535 5.750%, 7/01/18 - AMBAC Insured 7/09 at 101.00 AAA 4,037,818 4,000 6.000%, 7/01/19 - AMBAC Insured 7/09 at 101.00 AAA 4,653,520 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 17.0% 4,090 Metropolitan Transportation Authority, New York, Commuter No Opt. Call AAA 5,054,790 Facilities Revenue Bonds, Series 1994A, 8.000%, 7/01/07 - MBIA Insured 4,985 Metropolitan Transportation Authority, New York, Transit No Opt. Call AAA 6,160,912 Facilities Revenue Bonds, Series O, 8.000%, 7/01/07 - MBIA Insured County of Nassau, New York, General Improvement Bonds, Series E: 1,755 6.000%, 3/01/16 - FSA Insured 3/10 at 100.00 AAA 2,032,887 2,740 6.000%, 3/01/18 - FSA Insured 3/10 at 100.00 AAA 3,180,565 33 Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) $ 2,265 County of Nassau, New York, General Obligation Serial 3/10 at 100.00 AAA $ 2,760,831 Improvement Bonds, Series F, 7.000%, 3/01/14 - FSA Insured 7,500 Nassau Health Care Corporation, Nassau County Guaranteed, 8/09 at 102.00 AAA 8,358,450 New York, Health System Revenue Bonds, Series 1999, 5.750%, 8/01/29 - FSA Insured 4,000 City of New York, New York, General Obligation Bonds, No Opt. Call AAA 4,557,560 Fiscal 1995 Series E, 8.000%, 8/01/05 - MBIA Insured 7,900 City of New York, New York, General Obligation Bonds, 3/06 at 101.50 AAA 8,746,485 Fiscal 1996 Series I, 5.875%, 3/15/18 - FSA Insured 7,000 New York City Municipal Water Finance Authority, 6/09 at 101.00 AAA 7,885,640 New York, Water and Sewer System Revenue Bonds, Fiscal 2000 Series A, 5.750%, 6/15/31 - FGIC Insured Dormitory Authority of the State of New York, New Island Hospital Insured Revenue Bonds, Series 1999B: 3,400 5.750%, 7/01/19 - MBIA Insured 7/09 at 101.00 AAA 3,738,096 5,750 6.000%, 7/01/24 - MBIA Insured 7/09 at 101.00 AAA 6,326,783 9,745 New York State Housing Finance Agency, Housing Project 5/06 at 102.00 AAA 10,686,075 Mortgage Revenue Bonds, 1996 Series A Refunding, 6.125%, 11/01/20 - FSA Insured 6,095 New York State Medical Care Facilities Finance Agency, 2/05 at 102.00 AAA 6,720,225 Mental Health Services Facilities Improvement Revenue Bonds, 1995 Series A, 6.000%, 8/15/15 (Pre-refunded to 2/15/05) - MBIA Insured New York State Medical Care Facilities Finance Agency, New York Hospital FHA-Insured Mortgage Revenue Bonds, Series 1994A: 3,000 6.750%, 8/15/14 (Pre-refunded to 2/15/05) - AMBAC Insured 2/05 at 102.00 AAA 3,347,460 2,500 6.800%, 8/15/24 (Pre-refunded to 2/15/05) - AMBAC Insured 2/05 at 102.00 AAA 2,791,750 New York State Urban Development Corporation, Correctional Capital Facilities Revenue Bonds, Series 7: 3,505 5.700%, 1/01/27 (Pre-refunded to 1/01/07) - MBIA Insured 1/07 at 102.00 AAA 4,027,350 5,000 5.700%, 1/01/27 (Pre-refunded to 1/01/07) - FSA Insured 1/07 at 102.00 AAA 5,745,150 - ------------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 3.7% 10,715 City of Fargo, North Dakota, Health System Revenue Bonds, 6/10 at 101.00 AAA 11,486,909 MertiCare Obligated Group, Series 2000A, 5.600%, 6/01/21 - FSA Insured 8,000 State of North Dakota, Student Loan Revenue Bonds, 12/10 at 100.00 AAA 8,403,920 Series 2000B, 5.850%, 12/01/25 (Alternative Minimum Tax) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 1.0% Oklahoma City, Oklahoma, Airport Trust Junior Lien Tax Exempt Bonds, Twenty-Seventh Series 2000A: 1,320 5.125%, 7/01/20 - FSA Insured 7/10 at 100.00 AAA 1,391,993 4,040 5.250%, 7/01/21 - FSA Insured 7/10 at 100.00 AAA 4,288,985 - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 3.7% City of Portland, Oregon, Airport Way Urban Renewal and Redevelopment Bonds, 2000 Series A: 4,405 5.700%, 6/15/17 - AMBAC Insured 6/10 at 101.00 Aaa 5,013,375 3,665 5.750%, 6/15/18 - AMBAC Insured 6/10 at 101.00 Aaa 4,172,676 4,265 5.750%, 6/15/19 - AMBAC Insured 6/10 at 101.00 Aaa 4,829,686 1,375 5.750%, 6/15/20 - AMBAC Insured 6/10 at 101.00 Aaa 1,549,597 Housing Authority of Portland, Oregon, Multifamily Housing Revenue Bonds, Series 2000, Lovejoy Station Apartments Project: 1,500 5.900%, 7/01/23 (Alternative Minimum Tax) - MBIA Insured 7/10 at 100.00 Aaa 1,591,875 2,520 6.000%, 7/01/33 (Alternative Minimum Tax) - MBIA Insured 7/10 at 100.00 Aaa 2,668,504 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 5.6% 12,620 Allegheny County Hospital Development Authority, 11/10 at 102.00 AAA 15,047,078 Pennsylvania, Health System Insured Revenue Bonds, Series 2000A, West Penn Allegheny Health System, 6.500%, 11/15/30 - MBIA Insured 2,535 Allegheny County Residential Finance Authority, Pennsylvania, 11/06 at 102.00 Aaa 2,689,889 GNMA Single Family Mortgage Revenue Bonds, 1996 Series AA, 6.450%, 5/01/28 (Alternative Minimum Tax) 9,485 Berks County Municipal Authority, Pennsylvania, Hospital 11/09 at 102.00 AAA 11,447,731 Revenue Bonds, The Reading Hospital and Medical Center Project, Series 1999, 6.000%, 11/01/19 (Pre-refunded to 11/01/09) - FSA Insured 34 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA (continued) $ 1,000 Luzerne County Industrial Development Authority, Pennsylvania, 12/04 at 102.00 AAA $ 1,105,570 Exempt Facilities Revenue Refunding Bonds, 1994 Series A, Pennsylvania Gas and Water Company Project, 7.000%, 12/01/17 (Alternative Minimum Tax) - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 2.3% Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2003AA: 5,000 5.500%, 7/01/16 - FGIC Insured No Opt. Call AAA 5,842,900 2,000 5.500%, 7/01/17 - MBIA Insured No Opt. Call AAA 2,342,140 4,000 Puerto Rico Municipal Finance Agency, General Obligation 8/12 at 100.00 AAA 4,430,560 Bonds, 2002 Series A, 5.250%, 8/01/17 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 16.9% Brazos River Authority, Texas, Revenue Refunding Bonds, Houston Industries Incorporated Project, Series 1998C: 10,000 5.125%, 5/01/19 - AMBAC Insured 5/08 at 102.00 AAA 10,614,100 9,000 5.125%, 11/01/20 (Optional put 11/01/08) - AMBAC Insured 11/08 at 102.00 AAA 9,422,460 Cities of Dallas and Ft. Worth, Texas, Dallas-Ft. Worth International Airport, Joint Revenue Refunding and Improvement Bonds, Series 2001A: 3,000 5.750%, 11/01/13 (Alternative Minimum Tax) - FGIC Insured 11/11 at 100.00 AAA 3,361,020 12,500 5.500%, 11/01/35 (Alternative Minimum Tax) - FGIC Insured 11/09 at 100.00 AAA 12,921,125 3,895 City of Denton, Texas, Utility System Revenue Bonds, 12/10 at 100.00 AAA 4,350,287 Series 2000A, 5.625%, 12/01/19 - FSA Insured 7,210 City of Houston, Texas, Water and Sewer System Junior Lien 12/07 at 101.00 AAA 7,653,127 Revenue Bonds, Series 1997A Refunding, 5.250%, 12/01/22 - FGIC Insured 4,151 Panhandle Regional Housing Finance Corporation, Texas, 7/12 at 105.00 Aaa 4,798,556 Multifamily Housing Revenue Bonds, GNMA Collateralized Mortgage - Renaissance of Amarillo Apartments, Series 2001A, 6.650%, 7/20/42 Tarrant County Health Facilities Development Corporation, Texas, Hospital Revenue Bonds, Cook Children's Medical Center Project, Series 2000A: 6,725 5.750%, 12/01/17 - FSA Insured 12/10 at 101.00 AAA 7,435,765 7,500 5.750%, 12/01/24 - FSA Insured 12/10 at 101.00 AAA 8,112,375 10,627 Tarrant County Housing Finance Corporation, Texas, Multifamily 10/11 at 105.00 Aaa 12,246,130 Housing Revenue Bonds, Series 2001, GNMA Collateralized Mortgage Loan - Legacy Senior Residence Apartments Project, 6.625%, 4/20/42 State of Texas, General Obligation Bonds, Veterans Housing Assistance Program Fund, Series 1993: 1,315 6.800%, 12/01/23 (Alternative Minimum Tax) 12/03 at 102.00 Aa1 1,360,039 6,585 6.800%, 12/01/23 (Alternative Minimum Tax) - MBIA Insured 12/03 at 102.00 AAA 6,825,221 2,300 Texas State University System, Financing Revenue Bonds, 3/12 at 100.00 AAA 2,442,922 Series 2002 Refunding, 5.000%, 3/15/18 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 5.2% Intermountain Power Agency, Utah, Power Supply Revenue Refunding Bonds, 1993 Series A: 4,595 5.500%, 7/01/20 (Pre-refunded to 7/01/03) - AMBAC Insured 7/03 at 102.00 AAA 4,720,949 4,970 5.500%, 7/01/20 - AMBAC Insured 7/03 at 102.00 AAA 5,102,401 8,600 Intermountain Power Agency, Utah, Power Supply Revenue 7/13 at 100.00 AAA 9,197,270 Bonds, Series 2003A Refunding, 5.000%, 7/01/18 - FSA Insured 3,600 Utah State Board of Regents, Student Loan Revenue Bonds, 11/03 at 102.00 Aaa 3,697,092 Series 1993B, 5.900%, 11/01/13 (Alternative Minimum Tax) 5,525 Utah Transit Authority, Sales Tax Revenue Bonds, Series 2002A, 12/12 at 100.00 AAA 5,701,524 5.000%, 6/15/24 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ VERMONT - 0.3% 1,320 Vermont Educational and Health Buildings Financing Agency, 12/10 at 101.00 AAA 1,477,542 Hospital Revenue Bonds, Fletcher Allen Health Care Project, Series 2000A, 6.000%, 12/01/23 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.4% 2,250 Virginia Housing Development Authority, Multifamily Housing 1/08 at 102.00 AAA 2,404,238 Bonds, Series 1997B, 6.050%, 5/01/17 (Alternative Minimum Tax) - MBIA Insured 35 Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 16.0% $ 10,000 Public Utility District No. 1 of Chelan County, Washington, 7/11 at 101.00 AAA $ 10,524,900 Chelan Hydro Consolidated System Revenue Bonds, Series 2001B, 5.600%, 1/01/36 (Alternative Minimum Tax) - MBIA Insured 1,370 Sedro-Wooley School District No. 101, Clark County, 12/12 at 100.00 Aaa 1,422,266 Washington, General Obligation Bonds, Series 2002, 5.000%, 12/01/22 - FSA Insured 5,230 Public Utility District No. 1 of Douglas County, Washington, 9/09 at 102.00 AAA 5,958,330 Wells Hydroelectric Revenue Bonds, Series 1999A, 6.125%, 9/01/29 (Alternative Minimum Tax) - MBIA Insured 3,485 Public Utility District No. 2 of Grant County, Washington, 1/06 at 102.00 AAA 3,844,652 Priest Rapids Hydroelectric Development Revenue Bonds, Second Series 1996B, 5.900%, 1/01/21 (Alternative Minimum Tax) - MBIA Insured 2,500 City of Tacoma, Washington, Sewer Revenue Bonds, 1995 12/05 at 100.00 AAA 2,808,050 Series B, 6.375%, 12/01/15 (Pre-refunded to 12/01/05) - FGIC Insured 6,200 State of Washington, General Obligation Bonds, Series 2003A 7/12 at 100.00 AAA 6,523,268 Various Purpose, 5.000%, 7/01/20 - FGIC Insured 10,000 State of Washington, General Obligation Bonds, Series R-03-A 1/12 at 100.00 AAA 10,557,100 Refunding, 5.000%, 1/01/19 - MBIA Insured 8,100 Washington Healthcare Facilities Authority, Seattle, Revenue 8/03 at 102.00 AAA 8,289,621 Bonds, Series 1992, Virginia Mason Obligated Group, 6.300%, 2/15/17 - MBIA Insured 3,950 Washington Healthcare Facilities Authority, Revenue Bonds, 11/08 at 101.00 Aaa 4,049,185 Series 1998, Swedish Health Services, 5.125%, 11/15/22 - AMBAC Insured Washington Public Power Supply System, Nuclear Project No. 1 Refunding Revenue Bonds, Series 1993B: 10 5.600%, 7/01/15 (Pre-refunded to 7/01/03) - MBIA Insured 7/03 at 102.00 AAA 10,276 3,740 5.600%, 7/01/15 (Pre-refunded to 7/01/03) - MBIA Insured 7/03 at 102.00 AAA 3,843,149 10,455 Washington Public Power Supply System, Nuclear Project No. 1 7/03 at 102.00 AAA 10,735,299 Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17 - MBIA Insured 10,500 Washington Public Power Supply System, Nuclear Project No. 1 7/06 at 102.00 AAA 11,796,119 Refunding Revenue Bonds, Series 1996-A, 5.750%, 7/01/11 - MBIA Insured 6,295 Washington Public Power Supply System, Nuclear Project No. 3 7/03 at 102.00 AAA 6,462,320 Refunding Revenue Bonds, Series 1993B, 5.600%, 7/01/17 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 4.1% 20,000 County Commission of Pleasants County, West Virginia, 5/05 at 102.00 AAA 22,089,799 Pollution Control Revenue Bonds, Monongahela Power Company Pleasants Station Project, 1995 Series C, 6.150%, 5/01/15 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 6.3% 7,000 La Crosse, Wisconsin, Resource Recovery Revenue Refunding No Opt. Call AAA 8,284,709 Bonds, Series 1996, Northern States Pow Company Project, 6.000%, 11/01/21 (Alternative Minimum Tax) - MBIA Insured 12,750 Milwaukee County, Wisconsin, Airport Revenue Bonds, 12/10 at 100.00 Aaa 13,574,542 Series 2000A, 5.750%, 12/01/25 (Alternative Minimum Tax) - FGIC Insured 6,250 Wisconsin Health and Educational Facilities Authority, Revenue 8/06 at 102.00 AAA 6,942,811 Bonds, Series 1996, Sinai Samaritan Medical Center, Inc. Project, 5.750%, 8/15/16 - MBIA Insured 5,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/05 at 102.00 AAA 5,495,499 Bonds, Series 1995, Mercy Health System Corporation, 6.125%, 8/15/13 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ $ 779,298 Total Long-Term Investments (cost $736,636,607) - 148.1% 802,734,145 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.5% 8,199,107 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.6)% (268,900,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 542,033,252 ==================================================================================================================== All of the bonds in the portfolio are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. See accompanying notes to financial statements. 36
Nuveen Insured Dividend Advantage Municipal Fund (NVG) Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 3.6% $ 5,310 Athens, Alabama, Water and Sewer Revenue Warrants, 5/12 at 101.00 AAA $ 5,600,563 Series 2002, 5.300%, 5/01/32 - MBIA Insured 10,000 Jefferson County, Alabama, Sewer Revenue Capital 2/09 at 101.00 AAA 11,489,100 Improvement Warrants, Series 1999-A, 5.375%, 2/01/36 (Pre-refunded to 2/01/09) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 3.3% 15,000 State of Alaska, International Airport System Revenue Bonds, 10/12 at 100.00 AAA 15,637,800 Series 2002B, 5.250%, 10/01/27 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 1.1% 5,000 City of Phoenix Civic Improvement Corporation, Arizona, 7/12 at 100.00 AAA 5,159,350 Airport Revenue Bonds, Series 2002B Senior Lien, 5.250%, 7/01/32 (Alternative Minimum Tax) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 9.8% 10,000 State of California, General Obligation Veterans Welfare 12/08 at 101.00 AA- 10,559,000 Bonds, Series 1997BH, 5.400%, 12/01/14 (Alternative Minimum Tax) 3,200 State of California, General Obligation Various Purpose 9/10 at 100.00 AAA 3,457,248 Bonds, 5.250%, 9/01/17 - MBIA Insured 10,000 State of California, General Obligation Bonds, Series 2002 No Opt. Call AAA 10,376,100 Refunding, 5.000%, 2/01/23 - MBIA Insured 3,000 State of California, General Obligation Veterans Welfare 6/07 at 101.00 AAA 3,062,520 Bonds, Series 2001BZ, 5.375%, 12/01/24 (Alternative Minimum Tax) - MBIA Insured 7,935 City of Los Angeles, California, Certificates of Participation, 4/12 at 100.00 AAA 8,371,187 Real Property Acquisition Program, Series 2002, 5.300%, 4/01/32 - AMBAC Insured 7,500 Northern California Power Agency, Hydroelectric Project 7/08 at 101.00 AAA 7,770,750 Number One Revenue Bonds, 1998 Refunding Series A, 5.200%, 7/01/32 - MBIA Insured 2,320 Sacramento Municipal Utility District, California, 8/11 at 100.00 AAA 2,523,650 Electric Revenue Bonds, Series 2001P, 5.250%, 8/15/18 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.5% 2,000 New Haven, Connecticut, General Obligation Bonds, 11/13 at 101.00 AAA 2,258,040 Series 2003A Refunding, 5.250%, 11/01/16 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 16.9% 11,600 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 11,983,728 Revenue Bonds, Series 2002B, 5.125%, 10/01/21 (Alternative Minimum Tax) - FSA Insured 6,000 JEA, Florida, Water and Sewer System Revenue Bonds, 4/07 at 100.00 AAA 6,492,660 Series 2002A, 5.500%, 10/01/41 - MBIA Insured 8,155 Lee County, Florida, Solid Waste System Revenue Bonds, 10/11 at 100.00 Aaa 8,989,909 Series 2001 Refunding, 5.625%, 10/01/13 (Alternative Minimum Tax) - MBIA Insured 15,000 Miami-Dade County School Board, Florida, Certificates of No Opt. Call AAA 16,653,600 Participation, Series 2003A, 5.000%, 8/01/08 (Mandatory put 8/01/08) - MBIA Insured Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2002: 7,165 5.625%, 10/01/15 (Alternative Minimum Tax) - FGIC Insured 10/12 at 100.00 AAA 7,972,352 5,600 5.750%, 10/01/16 (Alternative Minimum Tax) - FGIC Insured 10/12 at 100.00 AAA 6,280,904 10,000 5.125%, 10/01/21 (Alternative Minimum Tax) - FGIC Insured 10/12 at 100.00 AAA 10,330,800 2,000 5.250%, 10/01/22 (Alternative Minimum Tax) - FGIC Insured 10/12 at 100.00 AAA 2,083,640 8,400 Village Center Community Development District, Florida, 11/13 at 101.00 AAA 8,663,424 Recreational Revenue Bonds, Series 2003A, 5.000%, 11/01/32 - MBIA Insured 37 Nuveen Insured Dividend Advantage Municipal Fund (NVG) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 0.4% $ 1,695 Georgia Housing and Finance Agency, Single Family Mortgage 12/11 at 100.00 AAA $ 1,769,122 Bonds, 2002 Series B-2, 5.500%, 6/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 18.3% 19,185 Village of Bolingbrook, Illinois, General Obligation Bonds, 1/12 at 100.00 AAA 20,173,795 Series 2002A, 5.375%, 1/01/38 - FGIC Insured 5,000 City of Chicago, Illinois, General Obligation Bonds, Project and 1/11 at 101.00 AAA 5,327,600 Refunding Series 2001A, 5.500%, 1/01/38 - MBIA Insured City of Chicago, Illinois, Chicago-O'Hare International Airport, Second Lien Passenger Facility Charge Revenue Bonds, Series 2001C: 4,250 5.500%, 1/01/16 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 4,606,235 4,485 5.500%, 1/01/17 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 4,830,480 4,730 5.500%, 1/01/18 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 5,064,364 2,930 5.500%, 1/01/19 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 3,121,974 3,000 City of Chicago, Illinois, Chicago-O'Hare International Airport, 1/12 at 100.00 AAA 3,310,710 General Airport Third Lien Revenue Refunding Bonds, Series 2002A, 5.750%, 1/01/17 (Alternative Minimum Tax) - MBIA Insured 12,765 City of Chicago, Illinois, Skyway Toll Bridge Revenue Bonds, 1/07 at 102.00 AAA 13,851,429 Series 1996, 5.500%, 1/01/23 - MBIA Insured 4,000 Town of Cicero, Cook County, Illinois, General Obligation 12/12 at 101.00 AAA 4,196,040 Corporate Purpose Bonds, Series 2002, 5.000%, 12/01/21 - MBIA Insured 12,000 County of Cook, Illinois, General Obligation Bonds, Series 2003 No Opt. Call AAA 13,436,160 Refunding, 5.000%, 11/15/10 - MBIA Insured 5,000 State of Illinois, General Obligation Bonds, Illinois FIRST 4/12 at 100.00 AAA 5,289,750 Program, Series 2002, 5.250%, 4/01/23 2,700 University of Illinois, Certificates of Participation, Utility 8/11 at 100.00 AAA 2,812,320 Infrastructure Projects, Series 2001A, 5.000%, 8/15/20 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 14.9% Indiana Bond Bank, Special Program Bonds, 2002 Series D, Hendricks County Redevelopment District: 2,500 5.375%, 4/01/23 - AMBAC Insured 4/12 at 100.00 AAA 2,663,875 7,075 5.250%, 4/01/26 - AMBAC Insured 4/12 at 100.00 AAA 7,400,167 7,000 5.250%, 4/01/30 - AMBAC Insured 4/12 at 100.00 AAA 7,290,570 10,000 Indiana Health Facility Financing Authority, Hospital Revenue 7/12 at 100.00 AAA 10,288,800 Bonds, Marion General Hospital Project, Series 2002, 5.250%, 7/01/32 - AMBAC Insured 25,000 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 26,174,250 Revenue Refunding Bonds, Series 2002A, Waterworks Project, 5.250%, 7/01/33 - MBIA Insured 6,000 IPS Multi-School Building Corporation, Indiana, First Mortgage 7/13 at 100.00 AAA 6,331,020 Bonds, Series 2003, 5.000%, 7/15/20 - MBIA Insured New Albany-Floyd County School Building Corporation, Indiana, First Mortgage Bonds, Series 2002: 2,500 5.750%, 7/15/17 - FGIC Insured 7/12 at 100.00 AAA 2,843,350 3,810 5.750%, 7/15/20 - FGIC Insured 7/12 at 100.00 AAA 4,270,781 Northern Wells Community School Building Corporation, Wells County, Indiana, First Mortgage Bonds, Series 2001: 420 5.250%, 1/15/19 - FGIC Insured 7/12 at 100.00 AAA 451,870 430 5.250%, 7/15/19 - FGIC Insured 7/12 at 100.00 AAA 462,628 1,675 5.400%, 7/15/23 - FGIC Insured 7/12 at 100.00 AAA 1,792,066 - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 0.7% 3,085 City of New Orleans, Louisiana, General Obligation Bonds, 9/12 at 100.00 AAA 3,268,126 Series 2002 Refunding, 5.125%, 9/01/21 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 3.6% 7,600 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 7,929,080 Agency, Mass Transit Sales Tax Appropriation Bonds, Metrolink Cross County Extension Project, Series 2002B, 5.000%, 10/01/23 - FSA Insured 8,735 City of St. Louis, Missouri, Airport Revenue Bonds, 7/11 at 100.00 AAA 9,108,421 Series 2001A, Airport Development Program, 5.250%, 7/01/31 - MBIA Insured 38 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 4.1% $ 9,810 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA $ 10,274,209 Bonds, Series 2002C, 5.000%, 6/15/21 - MBIA Insured 8,750 Truckee Meadows Water Authority, Nevada, Water Revenue 7/11 at 100.00 AAA 9,107,700 Bonds, Series 2001A, 5.250%, 7/01/34 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 6.6% 20,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 20,557,400 Revenue Bonds, Series 2002A Refunding, 5.000%, 11/15/30 - FSA Insured 10,000 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 AAA 10,257,500 Purpose Revenue Bonds, Series 2001A, 5.000%, 1/01/32 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 4.0% State of Oregon, General Obligation Veterans Welfare Bonds, 2002 Series 82: 11,375 5.375%, 12/01/31 12/11 at 100.00 AA 11,801,904 6,500 5.500%, 12/01/42 12/11 at 100.00 AA 6,763,445 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.2% 4,500 County of Allegheny, Pennsylvania, Airport Revenue Refunding No Opt. Call AAA 5,139,675 Bonds, Series 1997A, Pittsburgh International Airport, 5.750%, 1/01/13 (Alternative Minimum Tax) - MBIA Insured 5,000 Pennsylvania Higher Educational Facilities Authority, 7/08 at 100.00 AAA 5,409,700 University of Pennsylvania Revenue Bonds, Series 1998, 5.500%, 7/15/38 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 8.0% 10,000 Memphis and Shelby County Sports Authority, Inc., Tennessee, 11/12 at 100.00 AAA 10,353,700 Revenue Bonds, 2002 Series A, Memphis Arena Project, 5.125%, 11/01/28 - AMBAC Insured 11,000 Memphis and Shelby County Sports Authority, Inc., 11/12 at 100.00 AAA 11,386,540 Tennessee, Revenue Bonds, 2002 Series B, Memphis Arena Project, 5.125%, 11/01/29 - AMBAC Insured 15,195 Tennessee State School Bond Authority, Higher Educational 5/12 at 100.00 AAA 15,944,873 Facilities Bonds, Second Program, Series 2002A, 5.250%, 5/01/32 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 27.6% 7,165 Arlington Independent School District, Tarrrant County, Texas, 2/08 at 100.00 Aaa 7,239,444 General Obligation Bonds, Series 1998 Refunding, 4.750%, 2/15/21 3,500 Cities of Dallas and Ft. Worth, Texas, Dallas-Ft. Worth 11/11 at 100.00 AAA 3,921,190 International Airport, Joint Revenue Refunding and Improvement Bonds, Series 2001A, 5.750%, 11/01/13 (Alternative Minimum Tax) - FGIC Insured 10,000 Gainesville Hospital District, Texas, General Obligation 8/11 at 100.00 AAA 10,496,900 Limited Tax Bonds, Series 2002, 5.375%, 8/15/32 - MBIA Insured 3,645 Galveston, Texas, General Obligation Bonds, Series 2001A No Opt. Call AAA 3,860,930 Refunding, 5.250%, 5/01/21 - AMBAC Insured 13,000 Houston Area Water Corporation, City of Houston, Texas, 3/12 at 100.00 AAA 13,363,610 Contract Revenue Bonds, Northeast Water Purification Plant Project, Series 2002, 5.125%, 3/01/32 - FGIC Insured 2,500 Houston Higher Education Finance Corporation, Texas, Revenue 11/09 at 101.00 AAA 2,655,450 Bonds, Rice University Project, Series 1999A, 5.375%, 11/15/29 9,145 State of Texas, General Obligation Bonds, Veterans Housing 6/12 at 100.00 Aa1 9,530,279 Assistance Program Fund II, 2002 Series A-1, 5.250%, 12/01/22 (Alternative Minimum Tax) 7,420 Texas Department of Housing and Community Affairs, 7/11 at 100.00 AAA 7,622,937 Residential Mortgage Revenue Bonds, Series 2001A, 5.350%, 7/01/33 (Alternative Minimum Tax) 6,000 Texas Department of Housing and Community Affairs, 7/12 at 100.00 AAA 6,166,740 Residential Mortgage Revenue Bonds, Series 2002A, 5.350%, 7/01/33 (Alternative Minimum Tax) Texas Public Finance Authority, Revenue Financing System Bonds, Series 2002, Texas Southern University: 3,520 5.125%, 11/01/20 - MBIA Insured 5/12 at 100.00 Aaa 3,731,130 3,520 5.125%, 11/01/21 - MBIA Insured 5/12 at 100.00 Aaa 3,709,622 39 Nuveen Insured Dividend Advantage Municipal Fund (NVG) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 8,910 Texas Department of Housing and Community Affairs, 3/12 at 100.00 AAA $ 9,273,973 Single Family Mortgage Bonds, 2002 Series B, 5.550%, 9/01/33 (Alternative Minimum Tax) - MBIA Insured Texas Student Housing Authority, Austin, Student Housing Revenue Bonds, Texas Project, Senior Series 2001A: 9,400 5.375%, 1/01/23 - MBIA Insured 1/12 at 102.00 Aaa 10,144,010 11,665 5.500%, 1/01/33 - MBIA Insured 1/12 at 102.00 Aaa 12,567,171 5,000 Texas Water Development Board, State Revolving Fund, 1/10 at 100.00 AAA 5,445,850 Senior Lien Revenue Bonds, Series 1999B, 5.250%, 7/15/17 Williamson County, Texas, General Obligation Road Bonds, Series 2002: 3,500 5.200%, 2/15/21 - FSA Insured 2/12 at 100.00 AAA 3,708,110 3,000 5.250%, 2/15/22 - FSA Insured 2/12 at 100.00 AAA 3,176,190 7,340 5.250%, 2/15/23 - FSA Insured 2/12 at 100.00 AAA 7,738,268 5,000 5.250%, 2/15/25 - FSA Insured 2/12 at 100.00 AAA 5,245,400 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 12.0% 7,675 Energy Northwest, Washington, Nuclear Project No. 1 7/12 at 100.00 AAA 8,641,973 Electric Revenue Bonds, Series 2002A Refunding, 5.500%, 7/01/15 - MBIA Insured 6,600 Energy Northwest, Washington, Columbia Generation Station 7/12 at 100.00 AAA 7,195,914 Electric Revenue Refunding Bonds, Series 2002B, 5.350%, 7/01/18 - FSA Insured 2,500 Port of Seattle, Washington, Revenue Bonds, Series 2002D 11/12 at 100.00 AAA 2,818,800 Refunding, 5.750%, 11/01/15 (Alternative Minimum Tax) - FGIC Insured Washington State Economic Development Finance Authority, Wastewater Revenue Bonds, LOTT Project, Series 2002: 2,000 5.500%, 6/01/17 - AMBAC Insured 6/12 at 100.00 Aaa 2,229,000 4,325 5.125%, 6/01/22 - AMBAC Insured 6/12 at 100.00 Aaa 4,526,588 15,000 Washington Healthcare Facilities Authority, Revenue Bonds, 8/13 at 102.00 AAA 15,162,450 Series 1998, Harrison Memorial Hospital, 5.000%, 8/15/28 - AMBAC Insured 10,000 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 Aaa 10,156,700 Bonds, Children's Hospital and Regional Medical Center, Series 2001, 5.125%, 10/01/31 - AMBAC Insured 5,170 Whitman County School District No. 267, Pullman, Washington, 6/12 at 100.00 Aaa 5,425,760 General Obligation Bonds, Series 2002, 5.000%, 12/01/20 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 5.6% 13,005 Wisconsin Housing and Economic Development Authority, 3/12 at 100.00 AA 13,468,888 Home Ownership Revenue Bonds, 2002 Series, 5.250%, 9/01/22 (Alternative Minimum Tax) 11,950 State of Wisconsin, Transportation Revenue Bonds, 7/12 at 100.00 AAA 12,864,415 Series 2002-1 Refunding, 5.125%, 7/01/18 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ $ 636,340 Total Long-Term Investments (cost $632,673,062) - 143.2% 672,865,646 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 6.4% 2,500 Chester County Industrial Development Authority, VMIG-1 2,500,000 Pennsylvania, Revenue Bonds, Archdiocese of Philadelphia, Series 2001, Variable Rate Demand Bonds, 1.350%, 7/01/31+ 8,750 State of Connecticut Health and Educational Facilities Authority, A-1+ 8,750,000 Revenue Bonds, Yale University, Series 2003-X3, Variable Rate Demand Obligations, 1.300%, 7/01/37+ 5,635 Health and Educational Facilities Authority of the State of A-1+ 5,635,000 Missouri, Educational Facilities Revenue Bonds, Washington University, Series 2003B, Variable Rate Demand Obligations, 1.400%, 2/15/33+ 40 PRINCIPAL MARKET AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENTS (continued) $ 3,800 Nebraska Educational Finance Authority, Revenue Refunding VMIG-1 $ 3,800,000 Bonds, Creighton University Project, Series 2001, Variable Rate Demand Bonds, 1.350%, 8/01/31+ 9,350 Sublette County, Wyoming, Pollution Control Revenue Bonds, A-1+ 9,350,000 Exxon Project, Series 1984, Variable Rate Demand Bonds, 1.300%, 11/01/14+ - ------------------------------------------------------------------------------------------------------------------------------------ $ 30,035 Total Short-Term Investments (cost $30,035,000) 30,035,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $662,708,062) - 149.6% 702,900,646 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.0% 33,177 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.6)% (233,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 469,933,823 ==================================================================================================================== At least 80% of the Fund's net assets are invested in municipal securities that are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance which ensures the timely payment of principal and interest. Up to 20% of the Fund's net assets may be invested in municipal securities that are (i) either backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities (also ensuring the timely payment of principal and interest), or (ii) municipal bonds that are rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, S&P or Fitch) or unrated but judged to be of comparable quality by the Adviser. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or specified market index. See accompanying notes to financial statements. 41
Nuveen Insured Tax-Free Advantage Municipal Fund (NEA) Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 7.3% $ 3,045 Hoover, Alabama, General Obligation Warrants, Series 2003, 3/12 at 101.00 AAA $ 3,218,078 5.000%, 3/01/20 - MBIA Insured 3,100 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 5/12 at 102.00 AAA 3,294,215 Series 1998A, 5.400%, 6/01/22 - MBIA Insured 2,000 Huntsville Public Building Authority, Alabama, Lease Revenue 10/12 at 101.00 AAA 2,053,060 Bonds, Municipal Justice and Public Safety Center, Series 2002, 5.000%, 10/01/29 - MBIA Insured 5,000 Jefferson County, Alabama, General Obligation Warrants, 4/12 at 100.00 AAA 5,183,700 Series 2003A Refunding, 5.000%, 4/01/23 - MBIA Insured 6,280 Jefferson County, Alabama, Sewer Revenue Capital 8/12 at 100.00 AAA 6,417,218 Improvement Warrants, Series 2002D, 5.000%, 2/01/32 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 6.0% 5,660 Arizona Tourism and Sports Authority, Tax Revenue Bonds, 7/13 at 100.00 Aaa 6,212,869 Multipurpose Stadium Facility Project, Series 2003A, 5.375%, 7/01/20 - MBIA Insured 10,000 Maricopa County Pollution Control Corporation, Arizona, 11/12 at 100.00 AAA 10,295,100 Revenue Bonds, Arizona Public Service Company Palo Verde Project, Series 2002A, 5.050%, 5/01/29 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 33.1% 13,500 State of California, General Obligation Bonds, Series 2002 4/12 at 100.00 AAA 14,020,425 Refunding, 5.250%, 4/01/30 - XLCA Insured 26,300 State Public Works Board of the State of California, 12/12 at 100.00 AAA 27,061,911 Lease Revenue Bonds, Department of General Services, Capital East End, Series 2002A, 5.000%, 12/01/27 - AMBAC Insured 2,910 Cathedral City Public Financing Authority, California, Tax 8/12 at 102.00 AAA 3,020,231 Allocation Bonds, Housing Set-Aside, Series 2002D, 5.000%, 8/01/26 - MBIA Insured 5,000 Cerritos Public Financing Authority, California, Tax Allocation 11/17 at 102.00 AAA 5,292,000 Revenue Bonds, Cerritos Redevelopment Projects, Series 2002A, 5.000%, 11/01/24 - AMBAC Insured 2,500 Irvine Public Facilities and Infrastructure Authority, California, 9/03 at 103.00 AAA 2,576,200 Assessment Revenue Bonds, Series 2003C, 5.000%, 9/02/23 - AMBAC Insured 20,000 Los Angeles Unified School District, Los Angeles County, 7/13 at 100.00 AAA 21,184,600 California, General Obligation Bonds, Series 2003A, 5.000%, 7/01/21 - FSA Insured 3,755 Los Angeles County Metropolitan Transportation Authority, 7/08 at 101.00 AAA 3,860,027 California, Proposition C Sales Tax Revenue Bonds, Second Senior Series 1998A Refunding, 5.000%, 7/01/23 - AMBAC Insured 2,000 Northern California Power Agency, Hydroelectric Project 7/08 at 101.00 AAA 2,046,420 Number One Revenue Bonds, 1998 Refunding Series A, 5.000%, 7/01/28 - MBIA Insured Plumas County, California, Certificates of Participation, Series 2003A, Capital Improvement Program: 1,130 5.250%, 6/01/19 - AMBAC Insured 6/13 at 101.00 AAA 1,243,441 1,255 5.250%, 6/01/21 - AMBAC Insured 6/13 at 101.00 AAA 1,366,720 4,140 6/01/28 - AMBAC Insured 6/13 at 101.00 AAA 4,276,951 Redding Joint Power Financing Authority, California, Lease Revenue Bonds, Series 2003A Capital Projects: 275 5.000%, 3/01/18 - AMBAC Insured 3/13 at 100.00 AAA 296,123 290 5.000%, 3/01/19 - AMBAC Insured 3/13 at 100.00 AAA 310,088 1,210 5.000%, 3/01/23 - AMBAC Insured 3/13 at 100.00 AAA 1,267,886 3,000 San Diego Redevelopment Agency, California, Merged Area 8/10 at 101.00 AAA 3,076,230 Redevelopment Project Tax Allocation Bonds, Series 2002, 5.000%, 8/01/32 - MBIA Insured 42 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 1.9% $ 5,250 Sand Creek Metropolitan District, Colorado, General Obligation 12/13 at 100.00 AAA $ 5,364,555 Bonds, Series 2003 Refunding, 5.000%, 12/01/31 - XLCA Insured - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 1.0% East Hartford, Connecticut, General Obligation Bonds, Series 2003: 1,690 5.250%, 5/01/14 - FGIC Insured No Opt. Call Aaa 1,939,512 780 5.250%, 5/01/15 - FGIC Insured No Opt. Call Aaa 897,546 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 1.7% 1,525 Fernandina Beach, Florida, Utility Acquisition and Improvement 9/13 at 100.00 AAA 1,595,730 Revenue Bonds, Series 2003, 5.000%, 9/01/23 - FGIC Insured 3,000 Pinellas County Health Facilities Authority, Florida, Revenue 5/13 at 100.00 A1 3,042,690 Bonds, Baycare Health System, Series 2003, 5.500%, 11/15/27 - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 2.4% 3,825 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales 1/13 at 100.00 AAA 3,920,587 Tax Revenue Bonds, Second Indenture Series 2002, 5.000%, 7/01/32 - MBIA Insured 2,435 Newnan Hospital Authority, Georgia, Revenue Anticipation 1/13 at 100.00 Aaa 2,747,240 Certificates, Newnan Hospital, Inc., Series 2002, 5.500%, 1/01/16 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 2.5% 2,200 Public Building Commission of Chicago, Illinois, Building 3/13 at 100.00 AAA 2,383,524 Revenue Bonds, Chicago Transit Authority, Series 2003, 5.250%, 3/01/19 - AMBAC Insured 1,310 Cook County School District No. 100, Berwyn South, Illinois, 12/13 at 100.00 Aaa 1,412,010 General Obligation Bonds, Series 2003B Refunding, 5.250%, 12/01/21 - FSA Insured 3,000 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/13 at 100.00 A- 3,000,930 Forest Hospital, Series 2003, 5.250%, 7/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 6.4% Evansville, Indiana, Sewage Works Revenue Bonds, Series 2003A Refunding: 3,380 5.000%, 7/01/20 - AMBAC Insured 7/13 at 100.00 AAA 3,574,485 2,500 5.000%, 7/01/23 - AMBAC Insured 7/13 at 100.00 AAA 2,599,925 4,875 Indiana State Office Building Commission, Facilities Revenue 7/13 at 100.00 AAA 5,381,903 Bonds, Indiana State Museum, Series 2003, 5.250%, 7/01/17 - MBIA Insured The Trustees of Indiana University, Indiana University Student Fee Revenue Bonds, 2003 Series O: 1,375 5.000%, 8/01/21 - FGIC Insured 8/13 at 100.00 AAA 1,439,501 1,000 5.000%, 8/01/22 - FGIC Insured 8/13 at 100.00 AAA 1,041,050 North Side High School Building Corporation, Fort Wayne, Allen County, Indiana, First Mortgage Bonds, Series 2003: 2,010 5.250%, 7/15/17 - FSA Insured 7/13 at 100.00 AAA 2,212,568 1,145 5.250%, 1/15/18 - FSA Insured 7/13 at 100.00 AAA 1,251,359 - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 2.9% 7,510 Kansas Development Finance Authority, Revenue Bonds, 4/13 at 102.00 AAA 7,944,454 Kansas Board of Regents, Scientific Research and Development Facilities Projects, Series 2003C, 5.000%, 10/01/22 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 2.2% 5,785 City of New Orleans, Louisiana, General Obligation Bonds, 12/12 at 100.00 AAA 6,123,885 Series 2002 Refunding, 5.300%, 12/01/27 - FGIC Insured 43 Nuveen Insured Tax-Free Advantage Municipal Fund (NEA) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 7.1% $ 10,000 Massachusetts Bay Transportation Authority, Senior Sales 7/12 at 100.00 AAA $ 10,268,000 Tax Revenue Bonds, Series 2002A Refunding, 5.000%, 7/01/27 - FGIC Insured 4,910 Commonwealth of Massachusetts, General Obligation Bonds, No Opt. Call AAA 5,715,977 Consolidated Loan, Series 2002C, 5.500%, 11/01/15 - MBIA Insured 3,515 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 3,544,948 System Revenue Bonds, 1997 Senior Series A, 5.000%, 1/01/37 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 13.1% 6,130 City of Detroit, Michigan, Water Supply System Senior Lien 7/13 at 100.00 AAA 6,385,192 Revenue Bonds, Series 2003A, 5.000%, 7/01/23 - MBIA Insured City of Detroit, Michigan, Water Supply System Senior Lien Revenue Bonds, Series 2003C Refunding: 4,580 5.000%, 7/01/21 - MBIA Insured 7/13 at 100.00 AAA 4,816,511 4,465 5.000%, 7/01/22 - MBIA Insured 7/13 at 100.00 AAA 4,669,408 10,800 Michigan Strategic Fund, Resource Recovery Limited Obligation 12/12 at 100.00 AAA 11,099,160 Revenue Bonds, Detroit Edison Company, Series 2002D Refunding, 5.250%, 12/15/32 - XLCA Insured 2,250 Romulus Community Schools, County of Wayne, State of 5/11 at 100.00 AAA 2,361,578 Michigan, General Obligation Bonds, Series 2001 Refunding, 5.250%, 5/01/25 6,500 Charter County of Wayne, Michigan, Airport Hotel Revenue 12/11 at 101.00 AAA 6,626,230 Bonds, Detroit Metropolitan Wayne County Airport, Limited Tax General Obligation, Series 2001A, 5.000%, 12/01/30 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 1.9% 5,000 City of Forsyth, Rosebud County, Montana, Pollution Control 3/13 at 101.00 AAA 5,136,600 Revenue Bonds, Puget Sound Energy, Series 2003A Refunding, 5.000%, 3/01/31 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 1.6% 4,355 Nebraska Public Power District, General Revenue Bonds, 1/13 at 100.00 AAA 4,463,831 Series 2002B, 5.000%, 1/01/33 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 0.9% 2,315 Clark County, Nevada, Airport System Subordinate Lien Revenue 7/11 at 100.00 AAA 2,389,775 Bonds, Series 2001B, 5.200%, 7/01/31 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 1.3% 3,075 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 3,573,704 Series 2003 Refunding, 5.500%, 10/01/15 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 9.3% 25,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 25,696,750 Revenue Bonds, Series 2002F Refunding, 5.000%, 11/15/31 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 4.0% 10,000 North Carolina Municipal Power Agency Number 1, Catawba 1/13 at 100.00 AAA 10,905,700 Electric Revenue Bonds, Series 2003A, 5.250%, 1/01/18 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 3.5% 9,350 Oregon Health Sciences University, Revenue Bonds, 1/13 at 100.00 AAA 9,612,922 Series 2002A, 5.000%, 7/01/32 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 4.5% 5,000 Lehigh County Industrial Development Authority, Pennsylvania, No Opt. Call AAA 5,080,550 Pollution Control Revenue Bonds, PPL Electric Utilities Corporation Project, Series 2003 Refunding, 3.125%, 11/01/08 - AMBAC Insured 2,000 City of Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 8/13 at 100.00 AAA 2,044,140 1998 Resolution, Fourth Series, 5.000%, 8/01/32 - FSA Insured 5,000 City of Philadelphia, Pennsylvania, Water and Wastewater 8/07 at 102.00 AAA 5,145,000 Revenue Bonds, Series 1997A, 5.125%, 8/01/27 - AMBAC Insured 44 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 7.4% $ 1,365 Myrtle Beach, South Carolina, Water and Sewer System 3/13 at 100.00 AAA $ 1,505,213 Revenue Bonds, Series 2003 Refunding, 5.375%, 3/01/19 - FGIC Insured 3,460 City of Rock Hill, South Carolina, Combined Utility System 1/13 at 100.00 AAA 3,543,732 Revenue Bonds, Series 2003 Refunding, 5.000%, 1/01/30 - FSA Insured 15,000 South Carolina Transportation Infrastructure Bank, Revenue 10/12 at 100.00 Aaa 15,367,500 Bonds, Series 2002A, 5.000%, 10/01/33 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 12.4% 8,300 City of Austin, Texas, Electric Utility System Revenue Bonds, 5/13 at 100.00 AAA 8,976,035 Series 2003 Refunding, 5.250%, 11/15/19 - MBIA Insured 7,975 Fort Bend Independent School District, Fort Bend County, 8/10 at 100.00 AAA 8,138,009 Texas, General Obligation Bonds, Series 2000, 5.000%, 8/15/25 5,515 Houston, Texas, General Obligation Bonds, Series 2002 3/12 at 100.00 AAA 5,898,568 Refunding, 5.250%, 3/01/20 - MBIA Insured 5,850 Katy Independent School District, Counties of Harris, Fort Bend 2/12 at 100.00 AAA 6,255,522 and Waller, Texas, General Obligation Bonds, Series 2002A, 5.125%, 2/15/18 4,345 City of San Antonio, Texas, Water System Refunding Bonds, 5/12 at 100.00 AAA 4,851,062 Senior Lien Refunding Series 2002, 5.500%, 5/15/17 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.6% 1,500 Hampton, Virginia, Convention Center Revenue Bonds, 1/13 at 100.00 AAA 1,564,110 Series 2002, 5.125%, 1/15/28 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 10.4% 4,945 Broadway Office Properties, King County, Washington, Lease 12/12 at 100.00 AAA 5,025,752 Revenue Bonds, Washington Project, Series 2002, 5.000%, 12/01/31 - MBIA Insured 5,250 Public Utility District No. 1 of Chelan County, Washington, 7/12 at 100.00 AAA 5,389,493 Chelan Hydro Consolidated System Revenue Bonds, Series 2002C, 5.125%, 7/01/33 - AMBAC Insured 5,400 Clark County School District No. 114, Evergreen, Washington, 6/13 at 100.00 Aaa 5,906,250 General Obligation Bonds, Series 2003, 5.250%, 6/01/18 - FSA Insured 2,135 Kitsap County Consolidated Housing Authority, Washington, 7/13 at 100.00 Aaa 2,199,242 Revenue Bonds, Bremerton Government Center Project, Series 2003, 5.000%, 7/01/23 - MBIA Insured 9,670 State of Washington, General Obligation Bonds, 6/13 at 100.00 AAA 10,166,264 Series 2003D, 5.000%, 12/01/21 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 1.2% 3,000 West Virginia State Building Commission, Lease Revenue No Opt. Call AAA 3,361,109 Bonds, Series 1998A Refunding, Regional Jail Project, 5.375%, 7/01/21 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 3.0% 4,750 Wisconsin Health and Educational Facilities Authority, 8/08 at 102.00 AAA 4,895,254 Revenue Bonds, Wausau Hospital, Inc., Series 1998A Refunding, 5.125%, 8/15/20 - AMBAC Insured 3,000 Wisconsin Health and Educational Facilities Authority, No Opt. Call AAA 3,472,019 Revenue Bonds, Meriter Hospital, Inc., Series 1992A, 6.000%, 12/01/22 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ $ 392,650 Total Long-Term Investments (cost $399,516,205) - 149.6% 411,498,057 =============----------------------------------------------------------------------------------------------------------------------- 45 Nuveen Insured Tax-Free Advantage Municipal Fund (NEA) (continued) Portfolio of INVESTMENTS April 30, 2003 (Unaudited) PRINCIPAL MARKET AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENTS - 1.2% $ 2,000 California Statewide Communities Development Authority, A-1 $ 2,000,000 Revenue Bonds, Fremont-Rideout Health Group, Series 2001A, Variable Rate Demand Bonds, 1.350%, 1/01/31 - AMBAC Insured+ 1,500 Guilford County, North Carolina, General Obligation Bonds, A-1+ 1,500,000 Series 2002C, Variable Rate Demand Obligations, 1.350%, 10/01/21+ - ------------------------------------------------------------------------------------------------------------------------------------ $ 3,500 Total Short-Term Investments (cost $3,500,000) 3,500,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $403,016,205) - 150.8% 414,998,057 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.5% 4,112,491 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (52.3)% (144,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $275,110,548 ==================================================================================================================== At least 80% of the Fund's net assets are invested in municipal securities that are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance which ensures the timely payment of principal and interest. Up to 20% of the Fund's net assets may be invested in municipal securities that are (i) either backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities (also ensuring the timely payment of principal and interest), or (ii) municipal bonds that are rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, S&P or Fitch) or unrated but judged to be of comparable quality by the Adviser. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 46
Statement of ASSETS AND LIABILITIES April 30, 2003 (Unaudited)
INSURED INSURED INSURED INSURED PREMIER INSURED DIVIDEND TAX-FREE QUALITY OPPORTUNITY INSURED INCOME PREMIUM INCOME 2 ADVANTAGE ADVANTAGE (NQI) (NIO) (NIF) (NPX) (NVG) (NEA) - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at market value (cost $844,158,002, $1,803,845,543, $427,551,005, $736,636,607, $662,708,062 and $403,016,205, respectively) $917,359,398 $1,964,648,924 $465,677,891 $802,734,145 $702,900,646 $414,998,057 Cash -- 510,396 -- -- -- -- Receivables: Interest 12,811,590 29,575,861 8,518,372 14,199,696 9,344,483 6,035,062 Investments sold 749,343 1,840,000 95,000 2,180,607 -- -- Other assets 19,505 78,989 7,106 15,107 3,487 13,938 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 930,939,836 1,996,654,170 474,298,369 819,129,555 712,248,616 421,047,057 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 821,585 -- 2,253,501 7,364,263 7,831,325 1,527,554 Payable for investments purchased -- 6,508,005 -- -- 1,158,801 -- Accrued expenses: Management fees 473,323 991,612 244,024 414,422 187,801 107,850 Organization and offering cost -- -- -- -- 4,213 51,000 Other 263,457 541,248 121,496 383,527 109,752 229,698 Preferred share dividends payable 38,630 99,459 25,328 34,091 22,901 20,407 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 1,596,995 8,140,324 2,644,349 8,196,303 9,314,793 1,936,509 - ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 318,000,000 680,000,000 161,000,000 268,900,000 233,000,000 144,000,000 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $611,342,841 $1,308,513,846 $310,654,020 $542,033,252 $469,933,823 $275,110,548 ==================================================================================================================================== Common shares outstanding 37,946,735 81,060,946 19,342,905 37,266,640 29,807,822 18,507,252 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 16.11 $ 16.14 $ 16.06 $ 14.54 $ 15.77 $ 14.87 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 379,467 $ 810,609 $ 193,429 $ 372,666 $ 298,078 $ 185,073 Paid-in surplus 528,871,415 1,127,616,209 268,210,663 490,562,181 423,485,437 261,255,460 Undistributed net investment income 7,685,087 16,329,259 3,135,225 5,392,299 1,859,933 141,730 Accumulated net realized gain (loss) from investments 1,205,476 2,954,388 987,817 (20,391,432) 4,097,791 1,546,433 Net unrealized appreciation of investments 73,201,396 160,803,381 38,126,886 66,097,538 40,192,584 11,981,852 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $611,342,841 $1,308,513,846 $310,654,020 $542,033,252 $469,933,823 $275,110,548 ==================================================================================================================================== Authorized shares: Common 200,000,000 200,000,000 200,000,000 Unlimited Unlimited Unlimited Preferred 1,000,000 1,000,000 1,000,000 Unlimited Unlimited Unlimited ==================================================================================================================================== See accompanying notes to financial statements. 47
Statement of OPERATIONS Six Months Ended April 30, 2003 (Unaudited)
INSURED INSURED INSURED INSURED PREMIER INSURED DIVIDEND TAX-FREE QUALITY OPPORTUNITY INSURED INCOME PREMIUM INCOME 2 ADVANTAGE ADVANTAGE (NQI) (NIO) (NIF) (NPX) (NVG) (NEA)* - ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $24,607,225 $50,948,083 $12,147,071 $21,028,685 $17,231,993 $ 6,955,237 - ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 2,846,166 5,959,873 1,462,698 2,487,717 2,157,743 985,668 Preferred shares - auction fees 394,233 843,014 199,596 333,362 288,856 102,575 Preferred shares - dividend disbursing agent fees 24,795 34,712 14,877 24,795 14,877 5,699 Shareholders' servicing agent fees and expenses 65,006 107,159 25,308 40,269 5,280 8,231 Custodian's fees and expenses 101,518 221,746 61,078 90,142 84,870 38,867 Directors'/Trustees' fees and expenses 5,959 10,413 2,728 5,463 5,067 1,977 Professional fees 15,249 30,162 10,005 12,722 15,363 8,820 Shareholders' reports - printing and mailing expenses 36,285 79,327 16,451 20,682 33,813 22,930 Stock exchange listing fees 7,986 15,610 7,717 7,927 796 476 Investor relations expense 60,156 126,378 30,318 52,604 50,975 13,336 Portfolio insurance expense 20,532 23,375 -- 10,102 -- -- Other expenses 25,185 47,434 15,041 20,993 9,671 1,463 - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 3,603,070 7,499,203 1,845,817 3,106,778 2,667,311 1,190,042 Custodian fee credit (23,673) (67,176) (26,288) (43,579) (11,717) (23,826) Expense reimbursement -- -- -- -- (1,030,288) (494,363) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 3,579,397 7,432,027 1,819,529 3,063,199 1,625,306 671,853 - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 21,027,828 43,516,056 10,327,542 17,965,486 15,606,687 6,283,384 - ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN FROM INVESTMENTS Net realized gain from investments 1,204,105 3,480,435 1,010,924 1,317,429 4,100,169 1,546,433 Change in net unrealized appreciation (depreciation) of investments 11,800,424 31,531,585 8,630,482 11,986,743 11,236,177 11,981,852 - ------------------------------------------------------------------------------------------------------------------------------------ Net gain from investments 13,004,529 35,012,020 9,641,406 13,304,172 15,336,346 13,528,285 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (1,376,916) (2,890,403) (773,668) (1,348,458) (1,058,866) (404,455) From accumulated net realized gains from investments (433,291) (990,259) (66,219) -- (389,279) -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (1,810,207) (3,880,662) (839,887) (1,348,458) (1,448,145) (404,455) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations $32,222,150 $74,647,414 $19,129,061 $29,921,200 $29,494,888 $19,407,214 ==================================================================================================================================== *For the period November 22, 2002 (commencement of operations) through April 30, 2003. See accompanying notes to financial statements. 48
Statement of CHANGES IN NET ASSETS (Unaudited)
INSURED QUALITY (NQI) INSURED OPPORTUNITY (NIO) --------------------------------- --------------------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED 4/30/03 10/31/02 4/30/03 10/31/02 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 21,027,828 $ 42,568,954 $ 43,516,056 $ 93,065,833 Net realized gain from investments 1,204,105 4,974,138 3,480,435 11,512,148 Change in net unrealized appreciation (depreciation) of investments 11,800,424 (3,800,192) 31,531,585 (10,056,251) Distributions to Preferred Shareholders: From net investment income (1,376,916) (4,177,031) (2,890,403) (8,962,116) From accumulated net realized gains from investments (433,291) (252,858) (990,259) (425,567) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 32,222,150 39,313,011 74,647,414 85,134,047 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (18,709,752) (34,809,135) (39,444,779) (74,985,371) From accumulated net realized gains from investments (4,511,581) (824,876) (10,041,988) (1,454,843) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (23,221,333) (35,634,011) (49,486,767) (76,440,214) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares -- -- -- -- Net proceeds from shares issued to shareholders due to reinvestment of distributions 846,926 817,396 -- -- Preferred shares offering costs -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 846,926 817,396 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares 9,847,743 4,496,396 25,160,647 8,693,833 Net assets applicable to Common shares at the beginning of period 601,495,098 596,998,702 1,283,353,199 1,274,659,366 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $611,342,841 $601,495,098 $1,308,513,846 $1,283,353,199 ==================================================================================================================================== Undistributed net investment income at the end of period $ 7,685,087 $ 6,743,927 $ 16,329,259 $ 15,148,385 ==================================================================================================================================== See accompanying notes to financial statements. 49
Statement of CHANGES IN NET ASSETS (Unaudited) (continued)
PREMIER INSURED INSURED PREMIUM INCOME (NIF) INCOME 2 (NPX) --------------------------------- --------------------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED 4/30/03 10/31/02 4/30/03 10/31/02 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 10,327,542 $ 21,949,356 $ 17,965,486 $ 36,821,783 Net realized gain from investments 1,010,924 1,473,037 1,317,429 5,701,469 Change in net unrealized appreciation (depreciation) of investments 8,630,482 (2,260,720) 11,986,743 159,715 Distributions to Preferred Shareholders: From net investment income (773,668) (2,181,015) (1,348,458) (3,630,320) From accumulated net realized gains from investments (66,219) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 19,129,061 18,980,658 29,921,200 39,052,647 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (9,392,421) (18,123,654) (15,871,103) (30,549,239) From accumulated net realized gains from investments (674,644) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (10,067,065) (18,123,654) (15,871,103) (30,549,239) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares -- -- -- -- Net proceeds from shares issued to shareholders due to reinvestment of distributions 470,703 610,174 183,500 -- Preferred shares offering costs -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 470,703 610,174 183,500 -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares 9,532,699 1,467,178 14,233,597 8,503,408 Net assets applicable to Common shares at the beginning of period 301,121,321 299,654,143 527,799,655 519,296,247 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $310,654,020 $301,121,321 $542,033,252 $527,799,655 ==================================================================================================================================== Undistributed net investment income at the end of period $ 3,135,225 $ 2,973,772 $ 5,392,299 $ 4,646,374 ==================================================================================================================================== See accompanying notes to financial statements. 50
INSURED DIVIDEND INSURED TAX-FREE ADVANTAGE (NVG) ADVANTAGE (NEA) ------------------------ ----------------- FOR THE FOR THE PERIOD PERIOD 3/25/02 11/22/02 (COMMENCEMENT (COMMENCEMENT SIX MONTHS OF OPERATIONS) OF OPERATIONS) ENDED THROUGH THROUGH 4/30/03 10/31/02 4/30/03 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 15,606,687 $ 16,506,478 $ 6,283,384 Net realized gain from investments 4,100,169 3,519,698 1,546,433 Change in net unrealized appreciation (depreciation) of investments 11,236,177 28,956,407 11,981,852 Distributions to Preferred Shareholders: From net investment income (1,058,866) (1,473,247) (404,455) From accumulated net realized gains from investments (389,279) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 29,494,888 47,509,336 19,407,214 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (13,860,639) (13,860,480) (5,737,199) From accumulated net realized gains from investments (3,132,797) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (16,993,436) (13,860,480) (5,737,199) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares -- 426,270,921 264,457,500 Net proceeds from shares issued to shareholders due to reinvestment of distributions -- 12,436 3,758 Preferred shares offering costs -- (2,600,117) (3,121,000) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions -- 423,683,240 261,340,258 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares 12,501,452 457,332,096 275,010,273 Net assets applicable to Common shares at the beginning of period 457,432,371 100,275 100,275 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $469,933,823 $457,432,371 $275,110,548 ==================================================================================================================================== Undistributed net investment income at the end of period $ 1,859,933 $ 1,172,751 $ 141,730 ==================================================================================================================================== See accompanying notes to financial statements. 51
Notes to FINANCIAL STATEMENTS (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The National Funds (the "Funds") covered in this report and their corresponding Common share stock exchange symbols are Nuveen Insured Quality Municipal Fund, Inc. (NQI), Nuveen Insured Municipal Opportunity Fund, Inc. (NIO), Nuveen Premier Insured Municipal Income Fund, Inc. (NIF), Nuveen Insured Premium Income Municipal Fund 2 (NPX), Nuveen Insured Dividend Advantage Municipal Fund (NVG) and Nuveen Insured Tax-Free Advantage Municipal Fund (NEA). Insured Quality (NQI), Insured Opportunity (NIO), Premier Insured Income (NIF) and Insured Premium Income 2 (NPX) are traded on the New York Stock Exchange while Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA) are traded on the American Stock Exchange. The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end, diversified management investment companies. Prior to the commencement of operations of Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA), the Funds had no operations other than those related to organizational matters, the initial capital contribution of $100,275 per Fund by Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. (formerly, The John Nuveen Company), and the recording of the organization expenses ($11,500 per Fund) and its reimbursement by Nuveen Investments, LLC (formerly, Nuveen Investments), also a wholly owned subsidiary of Nuveen Investments, Inc. Each Fund seeks to provide current income exempt from regular federal income tax, and in the case of Insured Tax-Free Advantage (NEA) the alternative minimum tax applicable to individuals, by investing primarily in a diversified portfolio of municipal obligations issued by state and local government authorities. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with accounting principles generally accepted in the United States. Securities Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Directors/Trustees. When price quotes are not readily available (which is usually the case for municipal securities), the pricing service establishes fair market value based on yields or prices of municipal bonds of comparable quality, type of issue, coupon, maturity and rating, indications of value from securities dealers and general market conditions. If it is determined that market prices for a security are unavailable or inappropriate, the Board of Directors/Trustees of the Funds, or its designee, may establish a fair value for the security. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are valued at amortized cost, which approximates market value. Securities Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined on the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may have extended settlement periods. The securities so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At April 30, 2003, Insured Opportunity (NIO) had outstanding when-issued purchase commitments of $6,508,005. At April 30, 2003, there were no such outstanding purchase commitments in any of the other Funds. Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Federal Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net investment income to its shareholders. 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. Dividends and Distributions to Common Shareholders Dividends from tax-exempt net investment income are declared and paid monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. 52 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 accounting principles generally accepted in the United States. Preferred Shares The Funds have issued and outstanding $25,000 stated value Preferred shares. Each Fund's Preferred shares are issued in more than one Series. The dividend rate on each Series may change every seven days, as set pursuant to a dutch auction process by the auction agent, and is payable at or near the end of each rate period. The number of Preferred shares outstanding, by Series and in total, for each Fund is as follows:
PREMIER INSURED INSURED INSURED INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE (NQI) (NIO) (NIF) (NPX) (NVG) (NEA) - --------------------------------------------------------------------------------------------------------- Number of shares: Series M 2,600 4,000 -- 2,080 3,160 -- Series T 2,600 4,000 -- 2,200 3,080 2,880 Series W 2,600 4,000 840 2,080 -- 2,880 Series W2 -- 3,200 -- -- -- -- Series TH 2,320 4,000 2,800 2,200 3,080 -- Series TH2 -- 4,000 -- -- -- -- Series F 2,600 4,000 2,800 2,196 -- -- - --------------------------------------------------------------------------------------------------------- Total 12,720 27,200 6,440 10,756 9,320 5,760 =========================================================================================================
Effective January 17, 2003, Insured Tax-Free Advantage (NEA) issued 2,880 Series T and 2,880 Series W, $25,000 stated value Preferred shares. Insurance Insured Quality (NQI), Insured Opportunity (NIO), Premier Insured Income (NIF) and Insured Premium Income 2 (NPX) invest in municipal securities which are either covered by insurance or are backed by an escrow or trust account containing sufficient U.S. Government or U.S. Government agency securities, both of which ensure the timely payment of principal and interest. Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA) invest at least 80% of their net assets in municipal securities that are covered by insurance. Each Fund may also invest up to 20% of its net assets in municipal securities which are either (i) backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, or (ii) municipal bonds that are rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, S&P or Fitch) or unrated but judged to be of comparable quality by the Adviser. Each insured municipal security is covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance. Such insurance does not guarantee the market value of the municipal securities or the value of the Funds' Common shares. Original Issue Insurance and Secondary Market Insurance remain in effect as long as the municipal securities covered thereby remain outstanding and the insurer remains in business, regardless of whether the Funds ultimately dispose of such municipal securities. Consequently, the market value of the municipal securities covered by Original Issue Insurance or Secondary Market Insurance may reflect value attributable to the insurance. Portfolio Insurance 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. Derivative Financial Instruments The Funds may invest in certain derivative financial instruments including futures, forward, swap and option contracts, and other financial instruments with similar characteristics. Although the Funds are authorized to invest in such financial instruments, and may do so in the future, they did not make any such investments during the period ended April 30, 2003. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Offering Costs Nuveen Investments, LLC has agreed to pay all Common share offering costs (other than the sales load) that exceed $.03 per Common share for Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA). Insured Dividend Advantage's (NVG) and Insured Tax-Free Advantage's (NEA) share of Common share offering costs ($614,079 and $555,000, respectively) were recorded as a reduction of the proceeds from the sale of Common shares. Costs incurred by Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA) in connection with their offering of Preferred shares ($2,600,117 and $3,121,000, respectively) were recorded as a reduction to paid-in surplus. 53 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates. 2. FUND SHARES Transactions in Common and Preferred shares were as follows:
INSURED INSURED PREMIER INSURED QUALITY (NQI) OPPORTUNITY (NIO) INCOME (NIF) ----------------------- ------------------------ ----------------------- SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED 4/30/03 10/31/02 4/30/03 10/31/02 4/30/03 10/31/02 - --------------------------------------------------------------------------------------------------------- Common shares: Shares sold -- -- -- -- -- -- Shares issued to shareholders due to reinvestment of distributions 52,021 51,548 -- -- 29,543 39,202 - --------------------------------------------------------------------------------------------------------- 52,021 51,548 -- -- 29,543 39,202 ========================================================================================================= Preferred shares sold -- -- -- -- -- -- ========================================================================================================= INSURED INSURED INSURED PREMIUM INCOME 2 (NPX) DIVIDEND ADVANTAGE (NVG) TAX-FREE ADVANTAGE (NEA) ----------------------- --------------------------- ------------------------ FOR THE FOR THE PERIOD PERIOD 3/25/02 11/22/02 (COMMENCEMENT (COMMENCEMENT SIX MONTHS YEAR SIX MONTHS OF OPERATIONS) OF OPERATIONS) ENDED ENDED ENDED THROUGH THROUGH 4/30/03 10/31/02 4/30/03 10/31/02 4/30/03 - ----------------------------------------------------------------------------------------------------------- Common shares: Shares sold -- -- -- 29,800,000 18,500,000 Shares issued to shareholders due to reinvestment of distributions 12,681 -- -- 822 252 - ----------------------------------------------------------------------------------------------------------- 12,681 -- -- 29,800,822 18,500,252 =========================================================================================================== Preferred shares sold -- -- -- 9,320 5,760 ===========================================================================================================
3. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities during the six months ended April 30, 2003, 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 $24,370,136 $228,952,201 $59,893,468 $64,023,629 $ 79,258,845 $480,780,606 Sales and maturities 62,006,175 253,887,588 56,323,168 44,557,755 100,778,928 82,693,923 ========================================================================================================= * For the period November 22, 2002 (commencement of operations) through April 30, 2003.
54 4. INCOME TAX INFORMATION The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing income on taxable market discount securities and timing differences in recognizing certain gains and losses on security transactions. At April 30, 2003, the cost of investments 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) - ------------------------------------------------------------------------------------------------------------- Cost of Investments $843,520,559 $1,803,596,845 $427,544,818 $736,553,044 $662,669,263 $403,013,440 =============================================================================================================
Gross unrealized appreciation and gross unrealized depreciation on investments at April 30, 2003, 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 $73,838,839 $161,667,421 $38,154,373 $66,284,968 $40,415,262 $11,984,617 Depreciation -- (615,342) (21,300) (103,867) (183,879) -- - ------------------------------------------------------------------------------------------------------------- Net unrealized appreciation on investments $73,838,839 $161,052,079 $38,133,073 $66,181,101 $40,231,383 $11,984,617 =============================================================================================================
The tax components of undistributed net investment income and net realized gains at October 31, 2002, the Funds' last fiscal year end, were as follows:
PREMIER INSURED INSURED INSURED INSURED INSURED PREMIUM DIVIDEND QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE (NQI) (NIO) (NIF) (NPX) (NVG) - --------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income $9,238,467 $20,499,679 $4,517,140 $7,145,720 $3,495,989 Undistributed net ordinary income * 538,152 410,238 22,665 51,966 3,519,698 Undistributed net long-term capital gains 4,408,091 11,027,375 739,056 -- -- =========================================================================================================
* 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 period ended October 31, 2002, the Funds' last fiscal year end, was designated for purposes of the dividends paid deduction as follows:
PREMIER INSURED INSURED INSURED INSURED INSURED PREMIUM DIVIDEND QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE (NQI) (NIO) (NIF) (NPX) (NVG) - --------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt $38,550,143 $83,471,540 $20,196,415 $34,005,278 $12,987,249 income Distributions from net ordinary 123,801 5,439 -- -- -- income * Distributions from net long-term capital gains 1,077,734 1,880,410 -- -- -- =========================================================================================================
* Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. At October 31, 2002, the Funds' last fiscal year end, the following Fund had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows: INSURED PREMIUM INCOME 2 (NPX) - -------------------------------------------------------------------------------- Expiration year: 2003 $ 4,278,245 2004 2,080,786 2005 -- 2006 -- 2007 -- 2008 15,327,981 - -------------------------------------------------------------------------------- Total $21,687,012 ================================================================================ 55 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Under the Funds' (excluding Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA)) investment management agreements with the Adviser, each Fund pays an annual management fee, payable monthly, at the rates set forth below, which are based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows: AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE - -------------------------------------------------------------------------------- For the first $125 million .6500% For the next $125 million .6375 For the next $250 million .6250 For the next $500 million .6125 For the next $1 billion .6000 For the next $3 billion .5875 For net assets over $5 billion .5750 ================================================================================ Under Insured Dividend Advantage's (NVG) and Insured Tax-Free Advantage's (NEA) investment management agreements with the Adviser, each Fund pays an annual management fee, payable monthly, at the rates set forth below, which are based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows: AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE - -------------------------------------------------------------------------------- For the first $125 million .6500% For the next $125 million .6375 For the next $250 million .6250 For the next $500 million .6125 For the next $1 billion .6000 For net assets over $2 billion .5750 ================================================================================ For the first ten years of Insured Dividend Advantage's (NVG) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts, and for the time periods set forth below: YEAR ENDING YEAR ENDING MARCH 31, MARCH 31, - -------------------------------------------------------------------------------- 2002* .30% 2008 .25% 2003 .30 2009 .20 2004 .30 2010 .15 2005 .30 2011 .10 2006 .30 2012 .05 2007 .30 ================================================================================ * From the commencement of operations. 56 The Adviser has not agreed to reimburse Insured Dividend Advantage (NVG) for any portion of its fees and expenses beyond March 31, 2012. For the first eight years of Insured Tax-Free Advantage's (NEA) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts, and for the time periods set forth below: YEAR ENDING YEAR ENDING NOVEMBER 30, NOVEMBER 30, - -------------------------------------------------------------------------------- 2002* .32% 2007 .32% 2003 .32 2008 .24 2004 .32 2009 .16 2005 .32 2010 .08 2006 .32 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Insured Tax-Free Advantage (NEA) for any portion of its fees and expenses beyond November 30, 2010. 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 their officers, all of whom receive remuneration for their services to the Funds from the Adviser. 6. INVESTMENT COMPOSITION At April 30, 2003, the revenue sources by municipal purpose, expressed as a percent of total investments, 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) - --------------------------------------------------------------------------------------------------------- Education and Civic Organizations 3% 3% 2% 4% 12% 1% Healthcare 16 11 15 12 5 8 Housing/Multifamily 7 3 4 8 -- -- Housing/Single Family 3 8 3 2 5 -- Tax Obligation/General 10 5 16 11 25 25 Tax Obligation/Limited 9 12 13 12 13 31 Transportation 22 21 20 15 22 8 U.S. Guaranteed 11 13 16 11 2 -- Utilities 14 14 9 22 5 17 Water and Sewer 4 10 -- 3 10 10 Other 1 -- 2 -- 1 -- - --------------------------------------------------------------------------------------------------------- 100% 100% 100% 100% 100% 100% =========================================================================================================
Certain investments owned by the Funds are either covered by insurance issued by several private insurers or are backed by an escrow or trust containing U.S. Government or U.S. Government agency securities, both of which ensure the timely payment of principal and interest in the event of default (100% for Insured Quality (NQI), 100% for Insured Opportunity (NIO), 100% for Premier Insured Income (NIF), 100% for Insured Premium Income 2 (NPX), 83% for Insured Dividend Advantage (NVG) and 94% for Insured Tax-Free Advantage (NEA)). For additional information regarding each investment security, refer to the Portfolio of Investments of each Fund. 7. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on June 2, 2003, to shareholders of record on May 15, 2003, 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 $.0845 $.0810 $.0815 $.0720 $.0775 $.0775 =========================================================================================================
57 Financial HIGHLIGHTS (Unaudited) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions --------------------------------------------------------------- ------------------------------- Distributions Distributions from Net from Net Beginning Net Investment Capital Investment Capital Common Realized/ Income to Gains to Income to Gains to Share Net Unrealized Preferred Preferred Common Common Net Asset Investment Investment Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== INSURED QUALITY (NQI) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2003(c) $15.87 $ .55 $ .35 $(.04) $(.01) $ .85 $(.49) $(.12) $ (.61) 2002 15.78 1.12 .03 (.11) (.01) 1.03 (.92) (.02) (.94) 2001 14.51 1.18 1.20 (.26) -- 2.12 (.85) -- (.85) 2000 13.95 1.20 .60 (.34) -- 1.46 (.90) -- (.90) 1999 16.02 1.17 (1.91) (.22) (.04) (1.00) (.92) (.13) (1.05) 1998 15.68 1.18 .36 (.25) -- 1.29 (.94) (.01) (.95) INSURED OPPORTUNITY (NIO) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2003(c) 15.83 .54 .43 (.04) (.01) .92 (.49) (.12) (.61) 2002 15.72 1.15 .03 (.11) (.01) 1.06 (.93) (.02) (.95) 2001 14.64 1.17 1.04 (.26) -- 1.95 (.87) -- (.87) 2000 14.25 1.21 .39 (.33) -- 1.27 (.88) -- (.88) 1999 16.04 1.18 (1.73) (.24) (.01) (.80) (.94) (.04) (.98) 1998 15.78 1.21 .28 (.26) -- 1.23 (.97) -- (.97) PREMIER INSURED INCOME (NIF) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2003(c) 15.59 .53 .50 (.04) -- .99 (.49) (.03) (.52) 2002 15.55 1.14 (.05) (.11) -- .98 (.94) -- (.94) 2001 14.66 1.18 .85 (.26) -- 1.77 (.88) -- (.88) 2000 14.25 1.20 .43 (.33) -- 1.30 (.89) -- (.89) 1999 16.18 1.16 (1.89) (.23) (.01) (.97) (.90) (.04) (.94) 1998 15.84 1.16 .38 (.25) (.01) 1.28 (.92) (.02) (.94) INSURED PREMIUM INCOME 2 (NPX) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2003(c) 14.17 .48 .36 (.04) -- .80 (.43) -- (.43) 2002 13.94 .99 .16 (.10) -- 1.05 (.82) -- (.82) 2001 13.05 1.01 .86 (.23) -- 1.64 (.75) -- (.75) 2000 12.40 .99 .66 (.29) -- 1.36 (.71) -- (.71) 1999 14.10 .97 (1.71) (.23) -- (.97) (.73) -- (.73) 1998 13.60 .95 .53 (.25) -- 1.23 (.73) -- (.73) INSURED DIVIDEND ADVANTAGE (NVG) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2003(c) 15.35 .52 .52 (.04) (.01) .99 (.47) (.11) (.58) 2002(a) 14.33 .55 1.10 (.05) -- 1.60 (.47) -- (.47) INSURED TAX-FREE ADVANTAGE (NEA) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2003(b) 14.33 .34 .73 (.02) -- 1.05 (.31) -- (.31) ==================================================================================================================================== Total Returns ------------------- Offering Based Costs and Ending on Preferred Common Based Common Share Share Ending on Share Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** ====================================================================================== INSURED QUALITY (NQI) - -------------------------------------------------------------------------------------- Year Ended 10/31: 2003(c) $ -- $16.11 $16.7100 11.61% 5.48% 2002 -- 15.87 15.5500 10.82 6.83 2001 -- 15.78 14.9200 15.53 14.94 2000 -- 14.51 13.6875 10.94 10.86 1999 (.02) 13.95 13.1875 (9.65) (6.77) 1998 -- 16.02 15.6250 6.13 8.43 INSURED OPPORTUNITY (NIO) - -------------------------------------------------------------------------------------- Year Ended 10/31: 2003(c) -- 16.14 16.1200 10.15 5.93 2002 -- 15.83 15.2100 9.80 7.01 2001 -- 15.72 14.7400 19.84 13.61 2000 -- 14.64 13.0625 5.06 9.25 1999 (.01) 14.25 13.3125 (14.71) (5.33) 1998 -- 16.04 16.6250 12.03 7.99 PREMIER INSURED INCOME (NIF) - -------------------------------------------------------------------------------------- Year Ended 10/31: 2003(c) -- 16.06 16.2400 9.48 6.46 2002 -- 15.59 15.3300 6.84 6.57 2001 -- 15.55 15.2500 19.97 12.40 2000 -- 14.66 13.5000 9.92 9.41 1999 (.02) 14.25 13.1250 (17.33) (6.42) 1998 -- 16.18 16.8750 14.06 8.35 INSURED PREMIUM INCOME 2 (NPX) - -------------------------------------------------------------------------------------- Year Ended 10/31: 2003(c) -- 14.54 14.5900 9.11 5.70 2002 -- 14.17 13.7700 6.32 7.83 2001 -- 13.94 13.7500 29.46 12.85 2000 -- 13.05 11.2500 4.35 11.35 1999 -- 12.40 11.5000 (11.16) (7.21) 1998 -- 14.10 13.6875 16.35 9.28 INSURED DIVIDEND ADVANTAGE (NVG) - -------------------------------------------------------------------------------------- Year Ended 10/31: 2003(c) .01 15.77 15.0800 4.72 6.64 2002(a) (.11) 15.35 14.9600 2.84 10.44 INSURED TAX-FREE ADVANTAGE (NEA) - -------------------------------------------------------------------------------------- Year Ended 10/31: 2003(b) (.20) 14.87 15.0500 2.43 5.98 ====================================================================================== Ratios/Supplemental Data ---------------------------------------------------------------------------------------------- Before Credit/Reimbursement After Credit/Reimbursement*** ----------------------------- ------------------------------ Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Applicable Applicable Applicable Applicable Applicable Portfolio to Common to Common to Common to Common to Common Turnover Shares (000) Shares++ Shares++ Shares++ Shares++ Rate =========================================================================================================================== INSURED QUALITY (NQI) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2003(c) $ 611,343 1.21%* 7.04%* 1.20%* 7.05%* 3% 2002 601,495 1.23 7.22 1.21 7.24 44 2001 596,999 1.24 7.72 1.23 7.74 34 2000 549,120 1.24 8.48 1.23 8.49 24 1999 527,789 1.19 7.67 1.18 7.67 27 1998 603,179 1.13 7.49 1.13 7.49 16 INSURED OPPORTUNITY (NIO) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2003(c) 1,308,514 1.18* 6.82* 1.17* 6.83* 12 2002 1,283,353 1.20 7.42 1.19 7.42 37 2001 1,274,659 1.21 7.69 1.20 7.70 39 2000 1,186,701 1.20 8.47 1.20 8.48 16 1999 1,155,516 1.16 7.67 1.16 7.67 26 1998 1,292,589 1.13 7.60 1.13 7.60 12 PREMIER INSURED INCOME (NIF) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2003(c) 310,654 1.23* 6.84* 1.21* 6.86* 12 2002 301,121 1.25 7.40 1.23 7.42 43 2001 299,654 1.26 7.79 1.24 7.81 34 2000 282,544 1.26 8.37 1.24 8.39 21 1999 274,668 1.19 7.49 1.18 7.50 32 1998 310,466 1.16 7.29 1.16 7.29 10 INSURED PREMIUM INCOME 2 (NPX) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2003(c) 542,033 1.18* 6.79* 1.16* 6.80* 6 2002 527,800 1.20 7.13 1.19 7.14 26 2001 519,296 1.22 7.39 1.20 7.41 27 2000 486,009 1.22 7.87 1.20 7.88 55 1999 461,955 1.21 7.11 1.21 7.11 35 1998 524,962 1.20 6.89 1.20 6.89 31 INSURED DIVIDEND ADVANTAGE (NVG) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2003(c) 469,934 1.17* 6.39* .71* 6.85* 12 2002(a) 457,432 1.10* 5.71* .61* 6.20* 22 INSURED TAX-FREE ADVANTAGE (NEA) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2003(b) 275,111 1.03* 4.98* .58* 5.43* 23 =========================================================================================================================== 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: 2003(c) $318,000 $25,000 $73,062 2002 318,000 25,000 72,287 2001 318,000 25,000 71,934 2000 318,000 25,000 68,170 1999 318,000 25,000 66,493 1998 260,000 25,000 82,998 INSURED OPPORTUNITY (NIO) - ----------------------------------------------------------------- Year Ended 10/31: 2003(c) 680,000 25,000 73,107 2002 680,000 25,000 72,182 2001 680,000 25,000 71,862 2000 680,000 25,000 68,629 1999 680,000 25,000 67,482 1998 600,000 25,000 78,858 PREMIER INSURED INCOME (NIF) - ----------------------------------------------------------------- Year Ended 10/31: 2003(c) 161,000 25,000 73,238 2002 161,000 25,000 71,758 2001 161,000 25,000 71,530 2000 161,000 25,000 68,873 1999 161,000 25,000 67,650 1998 140,000 25,000 80,440 INSURED PREMIUM INCOME 2 (NPX) - ----------------------------------------------------------------- Year Ended 10/31: 2003(c) 268,900 25,000 75,394 2002 268,900 25,000 74,070 2001 268,900 25,000 73,280 2000 268,900 25,000 70,185 1999 268,900 25,000 67,949 1998 268,900 25,000 73,806 INSURED DIVIDEND ADVANTAGE (NVG) - ----------------------------------------------------------------- Year Ended 10/31: 2003(c) 233,000 25,000 75,422 2002(a) 233,000 25,000 74,081 INSURED TAX-FREE ADVANTAGE (NEA) - ----------------------------------------------------------------- Year Ended 10/31: 2003(b) 144,000 25,000 72,762 =================================================================
* Annualized. ** Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Common Share Net Asset Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in Common share net asset value per share. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. (a) For the period March 25, 2002 (commencement of operations) through October 31, 2002. (b) For the period November 22, 2002 (commencement of operations) through April 30, 2003. (c) For the six months ended April 30, 2003. See accompanying notes to financial statements. 58-59 SPREAD Build Your Wealth AUTOMATICALLY SIDEBAR TEXT: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. FLEXIBILITY 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. 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. 60 Fund INFORMATION BOARD OF DIRECTORS/TRUSTEES Robert P. Bremner Lawrence H. Brown Anne E. Impellizzeri Peter R. Sawers William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale FUND MANAGER Nuveen Advisory Corp. 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN State Street Bank & Trust Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 LEGAL COUNSEL Morgan, Lewis & Bockius LLP Washington, D.C. INDEPENDENT AUDITORS Ernst & Young LLP Chicago, IL POLICY CHANGE On November 14, 2002, the Board adopted a policy that allows these Funds, in addition to investments in municipal bonds, to invest up to 5% of its net assets (including assets attributable to preferred shares, if any) in tax-exempt or taxable fixed-income securities or equity securities for the purpose of acquiring control of an issuer whose municipal bonds (a) the Fund already owns and (b) have deteriorated or are expected shortly to deteriorate significantly in credit quality, provided Nuveen Advisory determines that such investment should enable the Fund to better maximize the value of its existing investment in such issuer. This policy is a non-fundamental policy of each Fund which means that it can be changed at any time by the Board of Trustees without vote of the shareholders. GLOSSARY OF TERMS USED IN THIS REPORT Average Annual Total Return: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return (including change in NAV and reinvested dividends) that would have been necessary on an annual basis to equal the investment's actual performance over the time period being considered. Average Effective Maturity: The average of all the maturities of the bonds in a fund's portfolio, computed by weighting each maturity date (the date the security comes due) by the market value of the security. This figure does not account for the likelihood of prepayments or the exercise of call provisions. Leverage-Adjusted Duration: Duration is a measure of a bond or bond fund's sensitivity to changes in interest rates. Generally, the longer a bond 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 generally longer than the duration of the actual portfolio of individual bonds that make up the Fund. Market Yield (also known as Dividend Yield or Current Yield): An investment's current annualized dividend divided by its current market price. Net Asset Value (NAV): A fund's NAV is calculated by subtracting the liabilities of the fund from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. - --------- Each Fund intends to repurchase shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the six-month period ended April 30, 2003. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 61 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. Managing $80 billion in assets, Nuveen Investments offers access to a number of different asset classes and investing solutions through a variety of products. Nuveen Investments markets its capabilities under four distinct brands: Nuveen, a leader in tax-free investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in growth-style equities; and Symphony, a leading institutional manager of market-neutral alternative investment portfolios. To learn more about the products and services Nuveen Investments offers and for a prospectus, where applicable, talk to your financial advisor, or call us at (800) 257-8787. Please read the information carefully before you invest. Distributed by NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606 | www.nuveen.com ESA-D-0403D ITEM 2. CODE OF ETHICS. Not applicable at this time. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable at this time. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable at this time. ITEMS 5-6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not applicable to this registrant. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's Disclosure Controls and Procedures are effective, based on their evaluation of such Disclosure Controls and Procedures as of a date within 90 days of the filing of this report on Form N-CSR. (b) There were no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of our evaluation. ITEM 10. EXHIBITS. File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (a) 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. (b) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the Act (17 CFR 270.30a-2) in the exact form set forth below: 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 Quality Municipal Fund, Inc. ----------------------------------------------------------- By (Signature and Title)* /s/ Jessica R. Droeger ---------------------------------------------- Jessica R. Droeger Vice President and Secretary Date July 8, 2003 ------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Gifford R. Zimmerman ---------------------------------------------- Gifford R. Zimmerman Chief Administrative Officer (Principal Executive Officer) Date July 8, 2003 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (Principal Financial Officer) Date July 8, 2003 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.CERT 3 file002.txt CERTIFICATIONS Certification Pursuant to Section 302 of the Sarbanes-Oxley Act I, Gifford R. Zimmerman, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen Insured Quality Municipal Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report. 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: July 8, 2003 ----------------------- /s/ Gifford R. Zimmerman --------------------- Chief Administrative Officer (principal executive officer) Certification Pursuant to Section 302 of the Sarbanes-Oxley Act I, Stephen D. Foy, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen Insured Quality Municipal Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report. 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: July 8, 2003 ----------------------- /s/ Stephen D. Foy --------------------- Vice President and Controller (principal financial officer) EX-99.906CERT 4 file003.txt CERTIFICATIONS Certification Pursuant to Section 906 of the Sarbanes-Oxley Act I, Gifford R. Zimmerman, Chief Administrative Officer of Nuveen Insured Quality Municipal Fund, Inc., certify that: 1. The Form N-CSR of the Fund (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Nuveen Insured Quality Municipal Fund, Inc. and will be retained by Nuveen Insured Quality Municipal Fund, Inc. and furnished to the Securities and Exchange Commission or its staff upon request. Date: July 8, 2003 ----------------------- /s/ Gifford R. Zimmerman --------------------- Chief Administrative Officer (chief executive officer) Certification Pursuant to Section 906 of the Sarbanes-Oxley Act I, Stephen D. Foy, Principal Financial Officer of Nuveen Insured Quality Municipal Fund, Inc., certify that: 1. The Form N-CSR of the Fund (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Nuveen Insured Quality Municipal Fund, Inc. and will be retained by Nuveen Insured Quality Municipal Fund, Inc. and furnished to the Securities and Exchange Commission or its staff upon request. Date: July 8, 2003 ----------------------- /s/ Stephen D. Foy --------------------- Vice President, Controller (Chief Financial Officer) -----END PRIVACY-ENHANCED MESSAGE-----