-----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, Fkl/eGwAmkoxLaYxrybUO78qWpulRstXrDGT5scvr5o4p6Qy18XZBrp+auzWnldx xKdQ6PreqTHh2PJozPzSUw== 0000891804-04-001996.txt : 20040909 0000891804-04-001996.hdr.sgml : 20040909 20040909102729 ACCESSION NUMBER: 0000891804-04-001996 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040630 FILED AS OF DATE: 20040909 DATE AS OF CHANGE: 20040909 EFFECTIVENESS DATE: 20040909 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN INSURED FLORIDA PREMIUM INCOME MUNICIPAL FUND CENTRAL INDEX KEY: 0000890893 IRS NUMBER: 363839900 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-07120 FILM NUMBER: 041021790 BUSINESS ADDRESS: STREET 1: 333 WEST WACKER DRIVE CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178200 MAIL ADDRESS: STREET 1: 333 WEST WACKER DRIVE CITY: CHICAGO STATE: IL ZIP: 60606 FORMER COMPANY: FORMER CONFORMED NAME: NUVEEN FLORIDA PREMIUM INCOME MUNICIPAL FUND DATE OF NAME CHANGE: 19600201 N-CSR 1 file001.txt NUVEEN INSURED FLORIDA PREMIUM INCOME MUNI FUND UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-7120 --------------------- Nuveen Insured Florida Premium Income Municipal Fund ------------------------------------------------------------------------------ (Exact name of registrant as specified in charter) Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 - ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Jessica R. Droeger Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 - ------------------------------------------------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: (312) 917-7700 ------------------- Date of fiscal year end: June 30 ------------------ Date of reporting period: June 30, 2004 ------------------ Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. ANNUAL REPORT June 30, 2004 Nuveen Investments Municipal Closed-End Exchange-Traded Funds NUVEEN FLORIDA INVESTMENT QUALITY MUNICIPAL FUND NQF NUVEEN FLORIDA QUALITY INCOME MUNICIPAL FUND NUF NUVEEN INSURED FLORIDA PREMIUM INCOME MUNICIPAL FUND NFL NUVEEN INSURED FLORIDA TAX-FREE ADVANTAGE MUNICIPAL FUND NWF Photo of: Man and woman sitting on porch. Photo of: 2 children sitting in the grass. DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Logo: NUVEEN Investments Photo of: Woman Photo of: Man and child Photo of: Woman NOW YOU CAN RECEIVE YOUR NUVEEN FUND REPORTS FASTER. NO MORE WAITING. SIGN UP TODAY TO RECEIVE NUVEEN FUND INFORMATION BY E-MAIL. It only takes a minute to sign up for E-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Investments Fund information is ready -- no more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report, and save it on your computer if you wish. ------------------ DELIVERY DIRECT TO YOUR E-MAIL INBOX ------------------ IT'S FAST, EASY & FREE: WWW.INVESTORDELIVERY.COM if you get your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR WWW.NUVEEN.COM/CORPORATE/ENROLLMENT if you get your Nuveen Fund dividends and statements directly from Nuveen. (Be sure to have the address sheet that accompanied this report handy. You'll need it to complete the enrollment process.) Logo: NUVEEN Investments Photo of: Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board Chairman's LETTER TO SHAREHOLDERS I am very pleased to report that for the period ended June 30, 2004, your Nuveen Fund continued to provide you with attractive monthly tax-free income. While tax-free income is always welcome, we know that many shareholders are beginning to wonder whether interest rates will rise significantly, and whether that possibility should cause them to adjust that portion of their investment portfolios allocated to tax-free municipal bonds. We believe this is a question you should consider carefully with the help of a trusted financial advisor. In many cases, it may be more appropriate to focus on long-term goals and objectives rather than shorter-term market movements, and this is where a professional advisor may be able to help keep you focused on the larger objectives of your investment program. WE THINK THAT MUNICIPAL BOND INVESTMENTS LIKE YOUR NUVEEN FUND CAN BE IMPORTANT BUILDING BLOCKS IN A WELL-BALANCED PORTFOLIO. As you read through this report, please review the inside front cover and consider receiving future Fund reports and other Fund information by e-mail and the Internet. Not only will you be able to receive the information faster, but this also may help lower your Fund's expenses. Sign up is quick and easy. 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 August 16, 2004 Nuveen Florida Municipal Closed-End Exchange-Traded Funds (NQF, NUF, NFL, NWF) Portfolio Manager's PERSPECTIVE Portfolio manager Dan Solender reviews the market environment, key investment strategies, and the annual performance of these four Nuveen Florida Funds. With twelve years of investment experience, including eight at Nuveen, Dan assumed portfolio management responsibility for NQF and NUF in November 2003, and added NFL and NWF in May 2004. WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE ANNUAL REPORTING PERIOD ENDED JUNE 30, 2004? During this reporting period, the U.S. economy demonstrated growing evidence of improvement in a number of key areas. Inflation also showed signs of acceleration, driven largely by higher energy and transportation costs, with the Consumer Price Index rising at a 4.9% rate (annualized) during the first six months of 2004, compared with 1.9% for all of 2003. The combination of inflation concerns and economic momentum, especially a series of sharply improved jobs reports, served as a catalyst for heightened volatility across the fixed-income markets. During the final three months of this reporting period, the bond markets, including the municipal market, were increasingly driven by expectations that the Federal Reserve would raise interest rates and by speculation over the timing and extent of those rate hikes. On June 30, 2004, the Fed increased the fed funds rate by 0.25% to 1.25%, the first increase in four years, noting that it anticipated taking a "measured" approach to further tightening to avoid potential derailment of the economic recovery. Although the market environment was generally favorable for municipal bonds during much of the 12-month period ended June 30, 2004, the bond market rally of late 2003-early 2004 was bracketed by periods of sharp price declines and yield increases. As one example of this volatility, the yield on the Bond Buyer 25 Revenue Bond Index (BB25), a widely followed municipal bond index, rose more than 50 basis points between April 1 and June 10, 2004, before retreating slightly during the final three weeks of this period. Overall, the trend during this 12-month period was toward higher yields, with the BB25 Index ending June 2004 almost 40 basis points higher than it was at the beginning of July 2003. In general, municipal supply nationwide remained relatively strong over the entire 12-month reporting period, as $372 billion in new bonds came to market, down 5% from the preceding 12-month period. However, the pace of issuance slowed in recent months, with $188 billion in new municipal supply during the first half of 2004, a decrease of 4 almost 9% from January-June 2003's record level. In contrast to 2003, when many states were issuing bonds to bridge budget gaps and fund operations, an improving economy and higher tax revenues have lessened the states' need to borrow. In June 2004 alone, volume decreased 24% from a year ago. HOW ABOUT ECONOMIC AND MARKET CONDITIONS IN FLORIDA? During this 12-month reporting period, Florida's service-based economy continued to benefit from solid growth and strong employment performance. Business and financial services, tourism, and healthcare took the lead in job growth, as unemployment in the state fell from 5.3% in June 2003 to 4.7% in June 2004, below the current national average of 5.6%. Rapid population growth provided additional strength to the Florida economy, although such growth also increases the challenges for long-term economic development. As of the time of this report, Florida was expected to close fiscal 2004 with a $2.2 billion general revenue and working capital reserve, in addition to a fully funded budget stabilization fund. For fiscal 2005, the state's $24.3 billion budget includes major spending in the areas of education and human services. In November 2003, Florida voters approved measures requiring the state to reduce the number of children per classroom, offer free universal pre-kindergarten, and commit to developing high-speed rail services. While Florida's general revenue performance continued to be strong, with 7% growth in fiscal 2004, the lack of a personal income tax and the push to phase out the state's intangible tax meant Florida's revenue base remained narrow, with sales taxes providing 75% of all revenues. During the 12-month reporting period ended June 2004, Florida issuers brought $15.4 billion in new municipal bonds to market, down 26% from the previous 12-month period. For the first six months of 2004, issuance tightened even further, as supply totaled $6.1 billion, off 49% from January-June 2003 levels. As of June 30, 2004, Florida debt continued to be rated Aa2 by Moody's and AA+ by Standard & Poor's, with stable outlooks from both credit agencies. 5 IN THIS ENVIRONMENT, WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE 12 MONTHS ENDED JUNE 30, 2004? Our major focus during this reporting period remained on trying to structure the Funds so that they all achieved risk/return profiles to the Florida market generally. When this process is completed, we believe the Funds will be better positioned to produce more consistent returns on net asset value over time as interest rates rise and fall. Of course, share prices and total return on share price over time will be impacted by a variety of factors in addition to movements of the Fund's net asset values. As noted earlier, municipal issuance in Florida dropped off sharply during the 12-month period, particularly in the first half of 2004. While this meant that it occasionally took longer to make some portfolio adjustments, the total amount of supply remained reasonable and we continued to find opportunities that we believed added value. The core of our purchase activity focused on attractive securities with defensive structures in the long-intermediate part of the yield curve (i.e., bonds that mature in 15 to 20 years). In many cases, bonds in this part of the curve offered yields similar to those of longer-term bonds with less inherent interest rate risk and greater total return potential. Among the bonds we purchased were several that were trading at premiums to their redemption prices. These higher-coupon bonds may help us to mitigate some of the Funds' risk if interest rates continue to rise. Some of the additions to our portfolios were financed through the sale of bonds with longer maturities (i.e., 30 years). In addition to improving and standardizing the Funds' yield curve positioning, we also sought to reduce the size of some lower-investment-grade rated holdings in NQF and NUF, the uninsured Funds. Given the supply available at the time these trades were completed, we tended to purchase higher-rated securities. During this period, most of the high-quality issuance in Florida came from the limited tax obligation sector, and we increased our allocations to this sector in each of the Funds. HOW DID THE FUNDS PERFORM? Individual results for the Nuveen Florida Funds, as well as for relevant benchmarks, are presented in the accompanying table. 6 TOTAL RETURNS ON NET ASSET VALUE For periods ended 6/30/04 (Annualized) 1-YEAR 5-YEAR 10-YEAR - -------------------------------------------------------------------- NQF 0.95% 6.74% 6.66% - -------------------------------------------------------------------- NUF 1.29% 6.14% 6.61% - -------------------------------------------------------------------- Lehman Brothers Municipal Bond Index2 0.76% 5.87% 6.44% - -------------------------------------------------------------------- INSURED FLORIDA FUNDS - -------------------------------------------------------------------- NFL 0.46% 6.92% 7.56% - -------------------------------------------------------------------- NWF -0.79% NA NA - -------------------------------------------------------------------- Lehman Brothers Insured Municipal Bond Index2 0.43% 6.15% 6.65% - -------------------------------------------------------------------- Lipper Florida Municipal Debt Funds average3 0.22% 6.51% 6.94% - -------------------------------------------------------------------- Past performance is not predictive of future results. For additional information, see the individual Performance Overview for your Fund in this report. For NFL and NWF, the insurance applies only to the bonds in the Funds' portfolios, and does not guarantee the value or price of the Funds' shares. There can be no assurance as to the ability of any insurer to meet its commitments. For the 12 months ended June 30, 2004, the total returns on net asset value (NAV) for NQF and NUF exceeded the return of the Lehman Brothers index. NFL outperformed the Lehman Brothers Insured index, while NWF lagged this measure. NQF, NUF and NFL also outperformed their Lipper Florida peer group, while NWF trailed the Lipper average. Structure (including duration1), credit quality, and sector allocation were the primary factors affecting the 12-month performance of these four Funds. As previously mentioned, yields rose sharply during the second quarter of 2004 and bond prices fell, impacting the Funds' total returns. In general, the longer a Fund's duration, the more its value was affected by the changes in prevailing interest rates. NWF, which was introduced in November 2002, had the longest duration of any Fund in this report as of June 30, 2004. This was not surprising; recently invested Funds often tend to have longer durations, and, initially, the duration of NWF was intentionally kept longer to provide additional support for its income stream. As a result, the recent rise in yields had a greater impact on the total return of NWF. 1 Duration is a measure of a Fund's net asset value (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. 2 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged national index comprising a broad range of investment-grade municipal bonds, while the Lehman Brothers Insured Municipal Bond Index is an unleveraged, unmanaged national index consisting of a broad range of insured municipal bonds. Results for the Lehman indexes do not reflect any expenses. 3 The Lipper Florida Municipal Debt Funds category average is calculated using the returns of all closed-end exchange-traded funds in this category for each period as follows: 1 year, 17 Funds; 5 years, 12 Funds; and 10 years, 10 Funds. Fund and Lipper returns assume reinvestment of dividends. 7 On the positive side, the noninsured Funds' performances benefited from their weightings of lower-rated bonds, which outperformed other credit quality sectors as the economy improved, investors' risk tolerance increased, and credit spreads tightened. As of June 30, 2004, NQF and NUF had allocations of BBB and non-rated bonds of 13% each. (As insured Funds, NFL was 100% invested in insured bonds, and NWF, which is allowed to invest up to 20% of its portfolio in uninsured investment-grade securities, held no BBB or non-rated bonds.) The Funds' allocations to the housing sector, especially multifamily housing, also made a positive contribution to their total returns, as this sector performed well when interest rates began to rise. Among these four Funds, NUF had the heaviest weighting of multifamily housing bonds, at 11% of its portfolio, followed by NFL with 10% and NQF with 7%, while NWF had no securities invested in this sector as of June 30, 2004. The healthcare sector, in particular lower-rated hospital debt, was also a strong performer over the 12 months, and as of June 30, 2004, all four Funds had healthy allocations to this sector, ranging from 16% in NUF to 13% in NQF, 11% in NWF and 9% in NFL. Both NQF and NUF, for example, held positions in Baa1 bonds issued for Tampa General Hospital, which helped to boost their performance. HOW ABOUT THE FUNDS' DIVIDENDS AND SHARE PRICES? With short-term interest rates remaining at historically low levels during this reporting period, the leveraged structures of these four Funds continued to support their dividend-paying capabilities. The extent of this benefit is tied in part to the short-term rates the Funds pay their MuniPreferred(R) shareholders. During periods of low short-term rates, the Funds generally pay relatively lower dividends to their MuniPreferred shareholders, which can leave more earnings to support common share dividends. During this reporting period, this strategy enabled us to increase the dividends of NQF and NFL, while helping to maintain the dividends of NUF and NWF throughout the period. In addition, due to capital gains generated by trading activity as part of our duration management efforts, common shareholders of NQF, NUF and NFL received substantial capital gains and net ordinary income distributions of $0.1984, $0.1432 and $0.1020 per share, respectively, at the end of December 2003. 8 All of these Funds seek to pay stable dividends at rates that reflect each Fund's past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund's NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of June 30, 2004, all of the Funds in this report except NWF had positive UNII balances. As of June 30, 2004, each of these Funds were trading at a discount to its net asset value, and each was trading at a larger discount than its average premium or discount over the course of the 12-month reporting period. HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF JUNE 30, 2004? Given the current geopolitical and economic climate, we continued to believe that maintaining strong credit quality was an important requirement. As of the end of June 2004, NQF and NUF continued to offer excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed and AA at 77% and 74%, respectively. NFL continued to be 100% invested in insured and/or U.S. guaranteed securities. NWF, which is allowed to invest up to 20% in uninsured investment-grade quality securities, held 87% of its portfolio in insured bonds as of June 30, 2004. As of the end of June 2004, potential call exposure for these Funds during 2004-2005 ranged from zero in NWF to 2% in NUF, 3% in NQF and 9% in NFL. The number of actual bond calls in all of the Funds will depend largely on market interest rates. 9 Nuveen Florida Investment Quality Municipal Fund NQF Performance OVERVIEW As of June 30, 2004 FUND SNAPSHOT - ------------------------------------ Share Price $14.03 - ------------------------------------ Common Share Net Asset Value $14.81 - ------------------------------------ Premium/(Discount) to NAV -5.27% - ------------------------------------ Market Yield 7.23% - ------------------------------------ Taxable-Equivalent Yield1 10.04% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $245,045 - ------------------------------------ Average Effective Maturity (Years) 19.20 - ------------------------------------ Leverage-Adjusted Duration 10.99 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 2/21/91) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 1-Year -9.61% 0.95% - ------------------------------------ 5-Year 4.18% 6.74% - ------------------------------------ 10-Year 5.85% 6.66% - ------------------------------------ TOP FIVE SECTORS (as a % of total investments) - ------------------------------------ Tax Obligation/Limited 22% - ------------------------------------ Healthcare 13% - ------------------------------------ Transportation 13% - ------------------------------------ U.S. Guaranteed 10% - ------------------------------------ Utilities 9% - ------------------------------------ Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 65% AA 12% A 10% BBB 4% NR 9% Bar Chart: 2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Jul 0.0835 Aug 0.0835 Sep 0.0835 Oct 0.0835 Nov 0.0835 Dec 0.0845 Jan 0.0845 Feb 0.0845 Mar 0.0845 Apr 0.0845 May 0.0845 Jun 0.0845 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 7/1/03 16.89 16.98 16.95 16.36 14.56 15.1 14.96 14.74 14.83 15.28 15.35 15.36 15.44 15.88 15.73 15.83 15.95 15.85 16.33 16.35 16.61 16.52 16.41 16.5 16.77 17.23 16.95 16.82 16.74 16.72 16.98 16.95 16.86 16.84 16.8 16.84 16.88 16.01 15.1 14.93 14.27 13.98 13.99 14.2 14.43 14.46 14.42 14.01 14.13 6/30/04 14.03 1 Taxable equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. For investments that generate qualified dividend income, the taxable equivalent yield is lower. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2003 of $0.1984 per share. 10 Nuveen Florida Quality Income Municipal Fund NUF Performance OVERVIEW As of June 30, 2004 FUND SNAPSHOT - ------------------------------------ Share Price $13.84 - ------------------------------------ Common Share Net Asset Value $14.81 - ------------------------------------ Premium/(Discount) to NAV -6.55% - ------------------------------------ Market Yield 7.20% - ------------------------------------ Taxable-Equivalent Yield1 10.00% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $211,659 - ------------------------------------ Average Effective Maturity (Years) 19.31 - ------------------------------------ Leverage-Adjusted Duration 11.12 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 10/17/91) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 1-Year -10.29% 1.29% - ------------------------------------ 5-Year 4.19% 6.14% - ------------------------------------ 10-Year 6.41% 6.61% - ------------------------------------ TOP FIVE SECTORS (as a % of total investments) - ------------------------------------ Tax Obligation/Limited 21% - ------------------------------------ Healthcare 16% - ------------------------------------ Transportation 12% - ------------------------------------ Housing/Multifamily 11% - ------------------------------------ Utilities 10% - ------------------------------------ Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 60% AA 14% A 13% BBB 5% NR 8% Bar Chart: 2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Jul 0.083 Aug 0.083 Sep 0.083 Oct 0.083 Nov 0.083 Dec 0.083 Jan 0.083 Feb 0.083 Mar 0.083 Apr 0.083 May 0.083 Jun 0.083 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 7/1/03 16.43 17.01 16.68 16.18 14.43 15.12 14.5 14.72 14.77 14.85 15.08 15.31 15.42 15.39 15.55 15.63 15.65 15.75 15.98 16.01 16.29 16.41 16.08 16.22 16.69 16.9 16.61 16.64 16.52 16.54 16.4 16.58 16.74 16.89 16.58 16.7 16.29 15.46 15.35 14.63 14.25 13.55 13.68 14.02 14.18 14.17 14.1 13.9 13.77 6/30/04 13.84 1 Taxable equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. For investments that generate qualified dividend income, the taxable equivalent yield is lower. 2 The Fund also paid shareholders a capital gains and net ordinary income distribution in December 2003 of $0.1432 per share. 11 Nuveen Insured Florida Premium Income Municipal Fund NFL Performance OVERVIEW As of June 30, 2004 FUND SNAPSHOT - ------------------------------------ Share Price $14.24 - ------------------------------------ Common Share Net Asset Value $15.59 - ------------------------------------ Premium/(Discount) to NAV -8.66% - ------------------------------------ Market Yield 6.74% - ------------------------------------ Taxable-Equivalent Yield1 9.36% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $223,965 - ------------------------------------ Average Effective Maturity (Years) 16.92 - ------------------------------------ Leverage-Adjusted Duration 8.85 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 12/17/92) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 1-Year -11.70% 0.46% - ------------------------------------ 5-Year 5.62% 6.92% - ------------------------------------ 10-Year 7.02% 7.56% - ------------------------------------ TOP FIVE SECTORS (as a % of total investments) - ------------------------------------ Tax Obligation/Limited 30% - ------------------------------------ Water and Sewer 20% - ------------------------------------ U.S. Guaranteed 12% - ------------------------------------ Transportation 12% - ------------------------------------ Housing/Multifamily 10% - ------------------------------------ Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 88% Insured and U.S. Guaranteed 12% Bar Chart: 2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Jul 0.079 Aug 0.079 Sep 0.079 Oct 0.079 Nov 0.079 Dec 0.08 Jan 0.08 Feb 0.08 Mar 0.08 Apr 0.08 May 0.08 Jun 0.08 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 7/1/03 17.35 17.3 17.12 16.5 14.95 15.65 15.73 15.3 15.19 15.35 15.36 15.85 15.82 16.19 16.01 16.08 16.51 16.61 16.85 16.7 16.81 16.66 17.03 16.83 17.08 17.16 17.31 17.05 17 16.85 16.84 16.7 16.95 16.78 16.97 16.79 16.5 15.75 15.37 14.95 14.88 14.37 14.13 14.4 14.68 14.62 14.71 14.1 14.17 6/30/04 14.24 1 Taxable equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. For investments that generate qualified dividend income, the taxable equivalent yield is lower. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2003 of $0.1020 per share. 12 Nuveen Insured Florida Tax Free Advantage Municipal Fund NWF Performance OVERVIEW As of June 30, 2004 FUND SNAPSHOT - ------------------------------------ Share Price $12.94 - ------------------------------------ Common Share Net Asset Value $13.78 - ------------------------------------ Premium/(Discount) to NAV -6.10% - ------------------------------------ Market Yield 6.68% - ------------------------------------ Taxable-Equivalent Yield1 9.28% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $53,504 - ------------------------------------ Average Effective Maturity (Years) 20.16 - ------------------------------------ Leverage-Adjusted Duration 12.86 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/21/02) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 1-Year -13.56% -0.79% - ------------------------------------ Since Inception-3.74% 3.23% - ------------------------------------ TOP FIVE SECTORS (as a % of total investments) - ------------------------------------ Tax Obligation/Limited 51% - ------------------------------------ Water and Sewer 13% - ------------------------------------ Healthcare 11% - ------------------------------------ Education and Civic Organizations 8% - ------------------------------------ Transportation 7% - ------------------------------------ Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 87% AAA (uninsured) 2% AA (uninsured) 2% A (uninsured) 9% Bar Chart: 2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE Jul 0.072 Aug 0.072 Sep 0.072 Oct 0.072 Nov 0.072 Dec 0.072 Jan 0.072 Feb 0.072 Mar 0.072 Apr 0.072 May 0.072 Jun 0.072 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 7/1/03 15.77 16.29 16.5 15.79 15 15.56 15.2 14.77 15.11 15.02 15.22 15.19 15.49 15.24 14.95 15 14.94 15.08 15.22 15.21 15.15 15.21 15.37 15.46 16.06 15.74 15.95 15.8 15.9 15.86 15.91 15.82 15.98 15.98 16.03 15.86 15.45 14.78 14 13.43 13.24 13.01 12.49 12.73 13.3 13.34 13.05 12.96 13.09 6/30/04 12.94 1 Taxable equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. For investments that generate qualified dividend income, the taxable equivalent yield is lower. 13 Report of INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE BOARDS OF TRUSTEES AND SHAREHOLDERS NUVEEN FLORIDA INVESTMENT QUALITY MUNICIPAL FUND NUVEEN FLORIDA QUALITY INCOME MUNICIPAL FUND NUVEEN INSURED FLORIDA PREMIUM INCOME MUNICIPAL FUND NUVEEN INSURED FLORIDA TAX-FREE ADVANTAGE MUNICIPAL FUND We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Florida Investment Quality Municipal Fund, Nuveen Florida Quality Income Municipal Fund, Nuveen Insured Florida Premium Income Municipal Fund, and Nuveen Insured Florida Tax-Free Advantage Municipal Fund as of June 30, 2004, and the related statements of operations, changes in net assets and the financial highlights for the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of June 30, 2004, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Florida Investment Quality Municipal Fund, Nuveen Florida Quality Income Municipal Fund, Nuveen Insured Florida Premium Income Municipal Fund, and Nuveen Insured Florida Tax-Free Advantage Municipal Fund at June 30, 2004 and the results of their operations, changes in their net assets and their financial highlights for the periods indicated therein in conformity with U.S. generally accepted accounting principles. /s/Ernst & Young LLP Chicago, Illinois August 13, 2004 14 Nuveen Florida Investment Quality Municipal Fund (NQF) Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.7% $ 5,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 4,060,950 Asset-Backed Refunding Bonds, Series 2002, 5.500%, 5/15/39 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 3.7% 1,295 Broward County Educational Facilities Authority, Florida, 4/14 at 100.00 AAA 1,393,679 Revenue Bonds, Nova Southeastern University, Series 2004A, 5.250%, 4/01/16 - AMBAC Insured 2,000 Broward County Educational Facilities Authority, Florida, 4/14 at 100.00 BBB 2,003,220 Revenue Bonds, Nova Southeastern University, Series 2004B, 5.625%, 4/01/34 3,000 Florida, Board of Education Lottery Revenue Bonds, 1/13 at 101.00 AAA 3,199,770 Series 2002C, 5.000%, 1/01/15 - MBIA Insured 2,290 Miami-Dade County Educational Facilities Authority, Florida, 4/14 at 100.00 AAA 2,369,371 Revenue Bonds, University of Miami, Series 2004A, 5.000%, 4/01/19 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 19.4% 4,600 Highlands County Health Facilities Authority, Florida, Hospital 11/11 at 101.00 A 4,757,872 Revenue Bonds, Adventist Health System/Sunbelt Obligated Group, Series 2001A, 6.000%, 11/15/31 Hillsborough County Industrial Development Authority, Florida, Hospital Revenue Bonds, Tampa General Hospital, Series 2003B: 1,000 5.250%, 10/01/28 10/13 at 100.00 Baa1 955,700 2,330 5.250%, 10/01/34 10/13 at 100.00 Baa1 2,208,630 2,345 Leesburg, Florida, Hospital Revenue Bonds, Leesburg Regional 7/12 at 100.00 A 2,318,361 Medical Center Project, Series 2002, 5.375%, 7/01/22 3,000 Miami-Dade County Health Facilities Authority, Florida, 8/11 at 101.00 AAA 3,001,800 Hospital Revenue Refunding Bonds, Miami Children's Hospital Project, Series 2001A, 5.125%, 8/15/26 - AMBAC Insured 6,000 North Broward Hospital District, Florida, Revenue and 1/11 at 101.00 A- 6,207,300 Improvement Bonds, Series 2001, 6.000%, 1/15/31 6,000 Orange County Health Facilities Authority, Florida, Hospital 11/10 at 101.00 A 6,369,240 Revenue Bonds, Adventist Health System/Sunbelt Obligated Group, Series 2000, 6.500%, 11/15/30 3,695 Orange County Health Facilities Authority, Florida, Hospital 12/12 at 100.00 A 3,775,108 Revenue Bonds, Orlando Regional Healthcare System, Series 2002, 5.750%, 12/01/27 Palm Beach County Health Facilities Authority, Florida, Hospital Revenue Refunding Bonds, BRCH Corporation Obligated Group, Series 2001: 2,500 5.500%, 12/01/21 12/11 at 101.00 A 2,546,225 2,340 5.625%, 12/01/31 12/11 at 101.00 A 2,347,652 7,500 Pinellas County Health Facilities Authority, Florida, Revenue 5/13 at 100.00 A1 7,528,200 Bonds, Baycare Health System, Series 2003, 5.500%, 11/15/33 5,375 South Broward Hospital District, Florida, Hospital Revenue 5/12 at 101.00 Aa3 5,513,729 Bonds, Series 2002, 5.625%, 5/01/32 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 11.4% 10,875 Broward County Housing Finance Authority, Florida, 7/09 at 102.00 N/R 11,745,000 Multifamily Housing Revenue Bonds, Pier Club Apartments Project, Series 1999, 7.000%, 7/01/34 1,090 Broward County Housing Finance Authority, Florida, 5/10 at 101.00 AAA 1,114,917 Multifamily Housing Revenue Bonds, Emerald Palms Apartments Project, Series 2001A, 5.600%, 7/01/21 (Alternative Minimum Tax) 590 Florida Housing Finance Agency, General Mortgage Revenue 12/04 at 101.00 AAA 596,478 Refunding Bonds, Series 1992A, 6.400%, 6/01/24 2,500 Florida Housing Finance Agency, Housing Revenue Bonds, 9/06 at 102.00 AAA 2,579,050 Mariner Club Apartments Project, Series 1996K-1, 6.375%, 9/01/36 (Alternative Minimum Tax) - AMBAC Insured 9,940 Florida Housing Finance Corporation, Revenue Bonds, Pembroke 2/16 at 100.00 N/R 8,747,200 Apartments, Series 2001B, 7.750%, 2/01/41 3,050 Florida Housing Finance Corporation, Revenue Bonds, Mission 1/12 at 100.00 AAA 3,097,855 Bay Apartments, Series 2001N, 5.500%, 7/15/29 (Alternative Minimum Tax) 15 Nuveen Florida Investment Quality Municipal Fund (NQF) (continued) Portfolio of INVESTMENTS June 30, 2004 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 3.9% $ 5,155 Florida Housing Finance Agency, Homeowner Mortgage 1/06 at 102.00 AA $ 5,302,021 Revenue Bonds, Refunding/New Money Issue, Series 1995-2, 6.200%, 7/01/27 (Alternative Minimum Tax) 1,230 Florida Housing Finance Agency, Homeowner Mortgage Revenue 1/07 at 102.00 AA 1,276,506 Bonds, Refunding/New Money Issue, Series 1996-2, 6.350%, 7/01/28 (Alternative Minimum Tax) 2,025 Florida Housing Finance Agency, Homeowner Mortgage 7/07 at 102.00 AAA 2,079,837 Revenue Bonds, Series 1997-2, 5.900%, 7/01/29 (Alternative Minimum Tax) - MBIA Insured 495 Manatee County Housing Finance Authority, Florida, Single 11/05 at 102.00 Aaa 513,305 Family Mortgage Revenue Bonds, Series 1994 - Subseries 3, 7.600%, 11/01/26 (Alternative Minimum Tax) 450 Housing Finance Authority of Manatee County, Florida, Single 5/06 at 105.00 Aaa 472,806 Family Mortgage Revenue Bonds, Series 1996 - Subseries 1, 7.450%, 5/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 5.6% 13,000 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 13,641,680 Exempt Facilities Revenue Bonds, National Gypsum Company Apollo Beach Project, Series 2000B, 7.125%, 4/01/30 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 11.0% 9,230 Florida State Board of Education, Full Faith and Credit, Public 6/11 at 101.00 AAA 9,253,444 Education Capital Outlay Bonds, Series 2001C, 5.125%, 6/01/31 - FGIC Insured 1,500 Florida State Board of Education, Full Faith and Credit Public 6/12 at 101.00 AAA 1,529,685 Education Capital Outlay Bonds, Series 2002F, 5.000%, 6/01/22 - MBIA Insured 2,080 Florida State Board of Education, Full Faith and Credit Public 6/13 at 100.00 AAA 2,136,410 Education Capital Outlay Bonds, Series 2003J, 5.000%, 6/01/21 - AMBAC Insured 8,000 Florida State Board of Education, Full Faith and Credit, Public 6/12 at 100.00 AA+ 8,619,040 Education Capital Outlay Refunding Bonds, Series 2002D, 5.375%, 6/01/16 Reedy Creek Improvement District, Orange and Osceola Counties, Florida, General Obligation Bonds, Series 2004A: 3,510 5.000%, 6/01/19 - MBIA Insured 4/14 at 100.00 AAA 3,642,854 1,750 5.000%, 6/01/20 - MBIA Insured 4/14 at 100.00 AAA 1,805,090 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 34.2% Miami-Dade County, Florida, Beacon Tradeport Community Development District, Special Assessment Bonds, Commercial Project, Series 2002A: 2,365 5.250%, 5/01/16 - RAAI Insured 5/12 at 102.00 AA 2,472,040 1,700 5.625%, 5/01/32 - RAAI Insured 5/12 at 102.00 AA 1,754,944 5,625 Broward County School Board, Florida, Certificates of 7/14 at 100.00 AAA 5,996,813 Participation, Series 2004C, 5.250%, 7/01/18 (DD, settling 7/01/04) - FSA Insured 1,000 Escambia County, Florida, Sales Tax Revenue Refunding Bonds, 10/12 at 101.00 AAA 1,025,630 Series 2002, 5.000%, 10/01/21 - AMBAC Insured Florida Intergovernmental Finance Commission, Capital Revenue Bonds, Daytona Beach Community Redevelopment Agency, Series 2001C-1: 1,280 5.000%, 2/01/20 - AMBAC Insured 8/11 at 100.00 Aaa 1,309,491 5,000 5.125%, 2/01/31 - AMBAC Insured 8/11 at 100.00 Aaa 4,999,750 5,000 Florida Ports Financing Commission, Revenue Bonds, State 6/07 at 101.00 AAA 5,045,300 Transportation Trust Fund, Series 1996, 5.375%, 6/01/27 (Alternative Minimum Tax) - MBIA Insured 1,685 Florida Municipal Loan Council, Revenue Bonds, Series 2003A, 5/13 at 100.00 AAA 1,711,960 5.000%, 5/01/22 - MBIA Insured 5,000 Hernando County, Florida, Criminal Justice Complex Financing No Opt. Call AAA 6,527,950 Program, Series 1986, 7.650%, 7/01/16 - FGIC Insured 2,000 Jacksonville, Florida, Guaranteed Entitlement Revenue 10/12 at 100.00 AAA 2,037,080 Refunding and Improvement Bonds, Series 2002, 5.000%, 10/01/22 - FGIC Insured 5,015 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/13 at 100.00 AAA 5,271,517 Bonds, Series 2003, 5.250%, 10/01/21 - MBIA Insured 16 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) Orlando Community Redevelopment Agency, Florida, Tax Increment Bonds, Republic Drive-Universal Boulevard/I-4 Interchange Project, Series 2002: $ 1,375 5.125%, 4/01/19 - AMBAC Insured 4/12 at 100.00 AAA $ 1,423,799 1,495 5.125%, 4/01/20 - AMBAC Insured 4/12 at 100.00 AAA 1,541,166 1,225 5.125%, 4/01/21 - AMBAC Insured 4/12 at 100.00 AAA 1,258,014 575 Osceola County Industrial Development Authority, Florida, 8/11 at 101.00 AAA 578,968 Industrial Development Revenue Bonds, P.M. Wells Charter School Project, Series 2001A, 5.000%, 8/01/23 - MBIA Insured Osceola County, Florida, Transportation Revenue Bonds, Osceola Parkway, Series 2004: 3,660 5.000%, 4/01/21 - MBIA Insured 4/14 at 100.00 Aaa 3,757,832 4,000 5.000%, 4/01/23 - MBIA Insured 4/14 at 100.00 Aaa 4,063,000 8,330 Palm Beach County School Board, Florida, Certificates of 8/12 at 100.00 AAA 8,258,195 Participation, Series 2002D, 5.000%, 8/01/28 - FSA Insured 2,560 Palm Beach County School Board, Florida, Certificates of 8/14 at 100.00 AAA 2,593,306 Participation, Series 2004A, 5.000%, 8/01/23 - FGIC Insured Pasco County School Board, Florida, Certificates of Participation, Series 2004A: 1,000 5.000%, 8/01/19 - AMBAC Insured No Opt. Call AAA 1,030,730 2,335 5.000%, 8/01/21 - AMBAC Insured 8/14 at 100.00 AAA 2,380,322 2,500 Polk County School District, Florida, Sales Tax Revenue Bonds, 10/14 at 100.00 AAA 2,681,150 Series 2004, 5.250%, 10/01/18 - FSA Insured 2,750 St. John's County, Florida, Transportation Improvement Revenue 10/13 at 100.00 AAA 2,791,525 Bonds, Series 2003, 5.000%, 10/01/23 - AMBAC Insured Tampa Sports Authority, Florida, Special Purpose Bonds, State Sales Tax Payment, Tampa Bay Arena Project, Series 1995: 1,250 5.750%, 10/01/20 - MBIA Insured No Opt. Call AAA 1,421,663 2,585 5.750%, 10/01/25 - MBIA Insured No Opt. Call AAA 2,878,397 8,605 Volusia County School Board, Florida, Sales Tax Revenue 10/12 at 100.00 AAA 9,356,647 Bonds, Series 2002, 5.375%, 10/01/15 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 19.3% 11,500 Broward County, Florida, Airport System Revenue Bonds, 10/11 at 101.00 AAA 11,525,760 Series 2001J-1, 5.250%, 10/01/26 (Alternative Minimum Tax) - AMBAC Insured 3,500 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 10/06 at 102.00 AAA 3,605,490 5.750%, 10/01/26 (Alternative Minimum Tax) - MBIA Insured 12,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/09 at 101.00 AAA 11,794,560 Revenue Bonds, Series 1999A, 5.125%, 10/01/28 (Alternative Minimum Tax) - FGIC Insured 4,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 4,031,800 Revenue Bonds, Series 2002B, 5.125%, 10/01/21 (Alternative Minimum Tax) - FSA Insured 2,590 Hillsborough County Aviation Authority, Florida, Revenue 10/06 at 102.00 AAA 2,795,258 Bonds, Tampa International Airport, Series 1996A, 6.000%, 10/01/23 (Alternative Minimum Tax) - FGIC Insured 3,500 Hillsborough County Aviation Authority, Florida, Revenue 10/06 at 102.00 AAA 3,759,910 Bonds, Tampa International Airport, Series 1996B, 5.875%, 10/01/23 - FGIC Insured 2,090 Lee County, Florida, Transportation Facilities Revenue Bonds, 10/14 at 100.00 AAA 2,172,325 Series 2004B, 5.000%, 10/01/19 - AMBAC Insured 1,750 Miami-Dade County Industrial Development Authority, Florida, 10/09 at 101.00 AAA 1,874,635 Industrial Development Revenue Bonds, Airis Miami II LLC - Miami International Airport, Series 1999, 6.000%, 10/15/25 (Alternative Minimum Tax) - AMBAC Insured 5,390 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA 5,796,298 International Airport, Series 2002, 5.750%, 10/01/18 (Alternative Minimum Tax) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 15.8% 7,225 Dade County, Florida, Special Obligation and Refunding 10/08 at 48.83 AAA 3,078,139 Bonds, Series 1996B, 0.000%, 10/01/20 (Pre-refunded to 10/01/08) - AMBAC Insured 20,000 Escambia County Health Facilities Authority, Florida, Revenue 11/09 at 101.00 AAA 22,732,400 Bonds, Ascension Health Credit Group, Series 1999A-2, 6.000%, 11/15/31 (Pre-refunded to 11/15/09) 17 Nuveen Florida Investment Quality Municipal Fund (NQF) (continued) Portfolio of INVESTMENTS June 30, 2004 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (continued) $ 6,955 Florida State Board of Education, Full Faith and Credit Public 6/05 at 101.00 AAA $ 7,304,767 Education Capital Outlay Bonds, Series 1993F, 6.000%, 6/01/20 (Pre-refunded to 6/01/05) 1,400 Pembroke Pines, Florida, Capital Improvement Revenue 10/04 at 102.00 AAA 1,444,240 Bonds, Series 1995, 6.000%, 10/01/25 (Pre-refunded to 10/01/04) - AMBAC Insured 3,570 Seminole County, Florida, Water and Sewer Revenue Refunding No Opt. Call AAA 4,188,574 and Improvement Bonds, Series 1992, 6.000%, 10/01/19 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 14.2% 4,330 Hillsborough County Industrial Development Authority, 10/12 at 100.00 Baa2 4,339,786 Florida, Pollution Control Revenue Bonds, Tampa Electric Company Project, Series 2002, 5.100%, 10/01/13 1,050 Jacksonville Beach, Florida, Utility Revenue Refunding Bonds, 10/10 at 100.00 Aaa 1,091,548 Series 2002, 5.000%, 4/01/17 - AMBAC Insured 4,250 Lakeland, Florida, Energy System Refunding Revenue Bonds, No Opt. Call AAA 4,898,635 Series 1999C, 6.050%, 10/01/11 - FSA Insured 7,345 Orlando Utilities Commission, Florida, Water and Electric 10/11 at 101.00 Aa1 7,780,485 Revenue Refunding Bonds, Series 2001, 5.250%, 10/01/18 5,000 Orlando Utilities Commission, Florida, Water and Electric 10/12 at 100.00 Aa1 5,296,450 Revenue Refunding Bonds, Series 2002C, 5.250%, 10/01/18 5,000 Orlando Utilities Commission, Florida, Water and Electric No Opt. Call Aa1 5,711,000 Revenue Refunding Bonds, Series 1992, 6.000%, 10/01/10 5,550 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 5,635,193 Series 2002II, 5.125%, 7/01/26 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 13.4% 3,310 Cocoa, Florida, Water and Sewer System Refunding Revenue No Opt. Call AAA 3,632,593 Bonds, Series 2003, 5.500%, 10/01/23 - AMBAC Insured Hollywood, Florida, Water and Sewer Revenue Refunding and Improvement Bonds, Series 2003: 2,000 5.000%, 10/01/19 - FSA Insured 10/13 at 100.00 Aaa 2,072,560 3,390 5.000%, 10/01/21 - FSA Insured 10/13 at 100.00 Aaa 3,476,886 1,000 Jacksonville, Florida, Water and Sewer Revenue Bonds, 8/05 at 102.00 AAA 1,059,940 United Water Florida Project, Series 1995, 6.350%, 8/01/25 (Alternative Minimum Tax) - AMBAC Insured 1,525 Lee County, Florida, Water and Sewer Revenue Refunding 10/13 at 100.00 Aaa 1,571,025 Bonds, Series 2003A, 5.000%, 10/01/20 - MBIA Insured 8,300 Miami-Dade County, Florida, Water and Sewer System Revenue 10/09 at 101.00 AAA 8,211,273 Bonds, Series 1999A, 5.000%, 10/01/29 - FGIC Insured 1,175 Naples, Florida, Water and Sewer Revenue Bonds, 9/12 at 100.00 Aa2 1,248,144 Series 2002, 5.000%, 9/01/14 2,060 Polk County, Florida, Utility System Revenue Bonds, 10/13 at 100.00 Aaa 2,154,307 Series 2003, 5.250%, 10/01/22 - FGIC Insured 1,680 Seminole County, Florida, Water and Sewer Revenue No Opt. Call AAA 1,951,757 Refunding and Improvement Bonds, Series 1992, 6.000%, 10/01/19 - MBIA Insured 5,000 Sunrise, Florida, Utility System Revenue Refunding Bonds, 10/18 at 100.00 AAA 5,019,900 Series 1998, 5.000%, 10/01/28 - AMBAC Insured Winter Springs, Florida, Water and Sewer Revenue Refunding Bonds, Series 2001: 700 5.250%, 4/01/16 - MBIA Insured 4/11 at 101.00 AAA 747,423 1,585 5.000%, 4/01/20 - MBIA Insured 4/11 at 101.00 AAA 1,626,350 - ------------------------------------------------------------------------------------------------------------------------------------ $ 366,375 Total Long-Term Investments (cost $362,913,240) - 153.6% 376,506,585 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.3% 538,462 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (53.9)% (132,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 245,045,047 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. N/R Investment is not rated. (DD) Security purchased on a delayed delivery basis. See accompanying notes to financial statements. 18 Nuveen Florida Quality Income Municipal Fund (NUF) Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 7.5% Broward County Educational Facilities Authority, Florida, Revenue Bonds, Nova Southeastern University, Series 2004B: $ 1,000 5.500%, 4/01/24 4/14 at 100.00 BBB $ 1,001,400 500 5.625%, 4/01/34 4/14 at 100.00 BBB 500,805 2,345 FSU Financial Assistance, Inc., Florida, General Revenue 10/14 at 100.00 AAA 2,480,799 Bonds, Educational and Athletic Facilities Improvements, Series 2004, 5.000%, 10/01/16 - AMBAC Insured 4,965 Florida, Board of Education Lottery Revenue Bonds, 7/11 at 101.00 AAA 5,098,360 Series 2001B, 5.000%, 7/01/20 - FGIC Insured 2,685 Florida, Board of Education Lottery Revenue Bonds, 1/13 at 101.00 AAA 2,863,794 Series 2002C, 5.000%, 1/01/15 - MBIA Insured 3,905 Miami-Dade County Educational Facilities Authority, Florida, 4/14 at 100.00 AAA 4,015,551 Revenue Bonds, University of Miami, Series 2004A, 5.000%, 4/01/20 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 24.8% 1,500 Citrus County Hospital Board, Florida, Revenue Bonds, Citrus 8/13 at 100.00 Baa3 1,525,785 Memorial Hospital, Series 2002 Refunding, 6.375%, 8/15/32 2,600 Highlands County Health Facilities Authority, Florida, Hospital 11/11 at 101.00 A 2,689,232 Revenue Bonds, Adventist Health System/Sunbelt Obligated Group, Series 2001A, 6.000%, 11/15/31 Hillsborough County Industrial Development Authority, Florida, Hospital Revenue Bonds, Tampa General Hospital, Series 2003B: 500 5.250%, 10/01/28 10/13 at 100.00 Baa1 477,850 1,590 5.250%, 10/01/34 10/13 at 100.00 Baa1 1,507,177 8,500 Jacksonville Economic Development Commission, Florida, 11/11 at 101.00 AA 8,632,175 Healthcare Facilities Revenue Bonds, Mayo Clinic, Series 2001A, 5.500%, 11/15/36 5,000 Jacksonville Health Facilities Authority, Florida, Revenue 11/12 at 101.00 AA 4,941,500 Bonds, Ascension Health Credit Group, Series 2002A, 5.250%, 11/15/32 9,000 North Broward Hospital District, Florida, Revenue and 1/11 at 101.00 A- 9,310,950 Improvement Bonds, Series 2001, 6.000%, 1/15/31 6,000 Orange County Health Facilities Authority, Florida, Hospital 12/12 at 100.00 A 6,117,900 Revenue Bonds, Orlando Regional Healthcare System, Series 2002, 5.750%, 12/01/32 5,000 Orange County Health Facilities Authority, Florida, Hospital 11/12 at 101.00 A 5,033,500 Revenue Bonds, Adventist Health System/Sunbelt Obligated Group, Series 2002, 5.250%, 11/15/18 7,500 Pinellas County Health Facilities Authority, Florida, Revenue 5/13 at 100.00 A1 7,528,200 Bonds, Baycare Health System, Series 2003, 5.500%, 11/15/33 4,625 South Broward Hospital District, Florida, Hospital Revenue 5/12 at 101.00 Aa3 4,744,371 Bonds, Series 2002, 5.625%, 5/01/32 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 16.7% Broward County Housing Finance Authority, Florida, GNMA Collateralized Multifamily Housing Revenue Refunding Bonds, Tamarac Pointe Apartments Project, Series 1996: 1,500 6.250%, 7/01/26 7/06 at 102.00 AAA 1,560,150 1,000 6.300%, 1/01/32 7/06 at 102.00 AAA 1,038,290 9,600 Broward County Housing Finance Authority, Florida, 6/09 at 102.00 N/R 8,515,104 Multifamily Housing Revenue Bonds, Pembroke Gardens Project, Series 1999, 6.150%, 6/01/39 (Alternative Minimum Tax) (Mandatory put 6/01/29) 515 Florida Housing Finance Agency, General Mortgage Revenue 12/04 at 101.00 AAA 520,655 Refunding Bonds, Series 1992A, 6.400%, 6/01/24 1,000 Florida Housing Finance Agency, Housing Revenue Bonds, 10/05 at 102.00 AAA 1,022,630 Holly Cove Apartment Project, Series 1995F, 6.150%, 10/01/25 (Alternative Minimum Tax) - AMBAC Insured 3,170 Florida Housing Finance Corporation, Housing Revenue 12/08 at 102.00 A+ 3,096,044 Refunding Bonds, Hunters Ridge at Deerwood Apartments, Series 1998-0, 5.300%, 12/01/28 5,790 Florida Housing Finance Corporation, Housing Revenue 10/10 at 102.00 Aaa 6,004,635 Bonds, Villa de Mallorca Apartments, Series 2000H-1, 6.000%, 7/01/33 (Alternative Minimum Tax) 19 Nuveen Florida Quality Income Municipal Fund (NUF) (continued) Portfolio of INVESTMENTS June 30, 2004 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) $ 7,425 Florida Housing Finance Corporation, Revenue Bonds, 2/16 at 100.00 N/R $ 6,534,000 Pembroke Apartments, Series 2001B, 7.750%, 2/01/41 3,630 Miami-Dade County Housing Finance Authority, Florida, 1/11 at 102.00 AAA 3,717,229 Multifamily Revenue Bonds, Sunset Bay Apartments Project, Series 2000-5A, 5.950%, 7/01/30 (Alternative Minimum Tax) - FSA Insured 3,240 Pinellas County Housing Finance Authority, Florida, 1/08 at 100.00 AAA 3,407,411 Multifamily Housing Revenue Bonds, Emerald Bay Apartments Project, Series 1998A, 5.000%, 4/01/28 (Alternative Minimum Tax) (Mandatory put 4/01/08) - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 3.4% 2,020 Broward County Housing Finance Authority, Florida, Single 4/09 at 25.51 Aaa 373,639 Family Mortgage Revenue Refunding Bonds, Series 2000B, 0.000%, 4/01/29 (Alternative Minimum Tax) 1,625 Broward County Housing Finance Authority, Florida, Single 4/10 at 25.36 Aaa 290,924 Family Mortgage Revenue Bonds, Series 2001C, 0.000%, 4/01/33 (Alternative Minimum Tax) 2,635 Florida Housing Finance Agency, Homeowner Mortgage 1/06 at 102.00 AA 2,710,150 Revenue Bonds, Refunding/New Money Issue, Series 1995-2, 6.200%, 7/01/27 (Alternative Minimum Tax) 475 Florida Housing Finance Agency, Home Ownership Revenue No Opt. Call AAA 513,751 Refunding Bonds, Series 1987-G1, 8.595%, 11/01/17 485 Lee County Housing Finance Authority, Florida, Single 3/07 at 105.00 Aaa 504,031 Family Mortgage Revenue Bonds, Multi-County Program, Series 1997A, Subseries 1, 7.200%, 3/01/27 (Alternative Minimum Tax) 225 Miami-Dade County Housing Authority, Florida, Home Owner 4/08 at 101.50 Aaa 232,110 Mortgage Revenue Bonds, Series 1999A-1, 5.550%, 10/01/19 (Alternative Minimum Tax) 1,590 Orange County Housing Finance Authority, Florida, Single 4/06 at 102.00 AAA 1,635,744 Family Mortgage Revenue Bonds, Series 1996A, 6.300%, 4/01/28 (Alternative Minimum Tax) 900 Orange County Housing Finance Authority, Florida, Single 9/07 at 102.00 AAA 904,806 Family Mortgage Revenue Bonds, Series 1997B, 5.100%, 9/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 3.5% 7,285 Atlantic Beach, Florida, Health Care Facilities Revenue 10/09 at 101.00 A 7,510,544 Refunding Bonds, Fleet Landing Project, Series 1999, 5.750%, 10/01/18 - ACA Insured - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 5.0% 10,000 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 10,493,600 Exempt Facilities Revenue Bonds, National Gypsum Company, Apollo Beach Project, Series 2000B, 7.125%, 4/01/30 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 11.6% 4,940 Florida State Board of Education, Full Faith and Credit, Public 6/11 at 101.00 AAA 4,955,709 Education Capital Outlay Bonds, Series 2001C, 5.125%, 6/01/29 - FGIC Insured 15,925 Florida State Board of Education, Full Faith and Credit Public 6/12 at 101.00 AAA 16,392,080 Education Capital Outlay Bonds, Series 2002B, 5.000%, 6/01/20 - MBIA Insured 3,240 Reedy Creek Improvement District, Orange and Osceola 4/14 at 100.00 AAA 3,308,753 Counties, Florida, General Obligation Bonds, Series 2004A, 5.000%, 6/01/22 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 31.7% 1,000 Alachua County School Board, Florida, Certificates of 7/11 at 101.00 Aaa 1,019,480 Participation, Series 2001, 5.000%, 7/01/21 - AMBAC Insured Miami-Dade County, Florida, Beacon Tradeport Community Development District, Special Assessment Bonds, Commercial Project, Series 2002A: 1,975 5.500%, 5/01/22 - RAAI Insured 5/12 at 102.00 AA 2,046,179 850 5.625%, 5/01/32 - RAAI Insured 5/12 at 102.00 AA 877,472 3,870 Broward County School Board, Florida, Certificates of 7/14 at 100.00 AAA 4,084,166 Participation, Series 2004C, 5.250%, 7/01/20 - FSA Insured 1,290 Escambia County, Florida, Tourist Development Refunding 10/12 at 100.00 AAA 1,338,014 Revenue Bonds, Series 2002, 5.000%, 10/01/18 - MBIA Insured 8,425 Florida Department of Environmental Protection, Florida 7/13 at 101.00 AAA 8,750,963 Forever Revenue Bonds, Series 2003C, 5.000%, 7/01/19 - AMBAC Insured 20 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) Florida Municipal Loan Council, Revenue Bonds, Series 2000B: $ 1,040 0.000%, 11/01/25 - MBIA Insured No Opt. Call AAA $ 321,079 1,590 0.000%, 11/01/26 - MBIA Insured No Opt. Call AAA 458,556 3,145 Jacksonville, Florida, Excise Taxes Revenue Refunding Bonds, 10/13 at 100.00 AAA 3,318,038 Series 2003C, 5.250%, 10/01/18 (Alternative Minimum Tax) - MBIA Insured 2,230 Jacksonville, Florida, Guaranteed Entitlement Revenue 10/12 at 100.00 AAA 2,282,070 Refunding and Improvement Bonds, Series 2002, 5.000%, 10/01/21 - FGIC Insured 1,000 Jacksonville, Florida, Local Government Sales Tax Revenue No Opt. Call AAA 1,122,130 Refunding Bonds, Series 2001, 5.500%, 10/01/14 - FGIC Insured 1,430 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/11 at 100.00 AAA 1,447,675 Bonds, Series 2001, 5.000%, 10/01/23 - AMBAC Insured 2,750 Jacksonville, Florida, Local Government Sales Tax Revenue 10/12 at 100.00 AAA 2,956,333 Refunding and Improvement Bonds, Series 2002, 5.375%, 10/01/17 - FGIC Insured 5,130 Manatee County School District, Florida, Sales Tax Revenue 10/13 at 100.00 AAA 5,399,428 Bonds, Series 2003, 5.000%, 10/01/17 - AMBAC Insured 2,475 Northern Palm Beach County Improvement District, Florida, 8/10 at 102.00 AA 2,690,325 Revenue Bonds, Water Control and Improvement Development Unit 19, Series 2000, 6.100%, 8/01/21 - RAAI Insured 2,000 Opa-Locka, Florida, Capital Improvement Revenue Bonds, 7/04 at 102.00 AAA 2,046,720 Series 1994, 6.125%, 1/01/24 - FGIC Insured Orange County, Florida, Sales Tax Revenue Bonds, Series 2002A: 3,265 5.125%, 1/01/20 - FGIC Insured 1/13 at 100.00 AAA 3,385,674 3,400 5.125%, 1/01/23 - FGIC Insured 1/13 at 100.00 AAA 3,477,588 2,040 Palm Beach County School Board, Florida, Certificates of 8/12 at 100.00 AAA 2,133,514 Participation, Series 2002D, 5.250%, 8/01/21 - FSA Insured 1,500 Palm Beach County School Board, Florida, Certificates of 8/14 at 100.00 AAA 1,527,900 Participation, Series 2004A, 5.000%, 8/01/22 - FGIC Insured 1,000 Pasco County, Florida, Sales Tax Revenue Bonds, Series 2003, 12/13 at 100.00 Aaa 1,049,370 5.000%, 12/01/17 - AMBAC Insured 2,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 2,299,180 Appropriation Bonds, Series 2002E, 6.000%, 8/01/26 11,815 Volusia County School Board, Florida, Sales Tax Revenue 10/12 at 100.00 AAA 12,910,959 Bonds, Series 2002, 5.375%, 10/01/14 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 17.6% 2,225 Broward County, Florida, Airport System Revenue Bonds, 10/11 at 101.00 AAA 2,268,833 Series 2001J-1, 5.250%, 10/01/21 (Alternative Minimum Tax) - AMBAC Insured 12,000 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 10/06 at 102.00 AAA 12,361,680 5.750%, 10/01/26 (Alternative Minimum Tax) - MBIA Insured 1,500 Dade County, Florida, Aviation Revenue Bonds, Series 1995B, 10/05 at 102.00 AAA 1,588,260 6.000%, 10/01/24 (Alternative Minimum Tax) - MBIA Insured 3,500 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/07 at 101.00 AAA 3,522,820 Revenue Bonds, Series 1997, 5.250%, 10/01/23 (Alternative Minimum Tax) - FGIC Insured 4,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 4,031,800 Revenue Bonds, Series 2002B, 5.125%, 10/01/21 (Alternative Minimum Tax) - FSA Insured 7,500 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/08 at 101.00 AAA 7,372,875 International Airport, Series 1998A, 5.000%, 10/01/24 (Alternative Minimum Tax) - FGIC Insured 4,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/08 at 101.00 AAA 3,958,240 International Airport, Series 1998C, 5.000%, 10/01/23 (Alternative Minimum Tax) - MBIA Insured 2,000 Miami-Dade County Expressway Authority, Florida, Toll System 7/11 at 101.00 Aaa 2,045,660 Refunding Revenue Bonds, Series 2001, 5.000%, 7/01/21 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 1.9% 1,500 Bradford County Health Facilities Authority, Florida, Health No Opt. Call AAA 1,701,435 Facilities Revenue Refunding Bonds, SantaFe Health Care Facilities Project, Series 1993, 6.050%, 11/15/16 2,300 Sarasota County, Florida, Utility System Revenue Bonds, 10/04 at 102.00 AAA 2,375,555 Series 1994, 6.500%, 10/01/22 (Pre-refunded to 10/01/04) - FGIC Insured 21 Nuveen Florida Quality Income Municipal Fund (NUF) (continued) Portfolio of INVESTMENTS June 30, 2004 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 14.9% $ 750 Gainesville, Florida, Utilities System Revenue Bonds, 10/13 at 100.00 AA $ 787,208 Series 2003A, 5.250%, 10/01/21 10,000 Hillsborough County Industrial Development Authority, 10/12 at 100.00 Baa2 10,022,600 Florida, Pollution Control Revenue Bonds, Tampa Electric Company Project, Series 2002, 5.100%, 10/01/13 9,440 JEA, St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 9,850,357 Refunding Bonds, Series 2002-17, Issue 2, 5.000%, 10/01/15 3,290 Orlando Utilities Commission, Florida, Water and Electric 10/11 at 101.00 Aa1 3,501,448 Revenue Refunding Bonds, Series 2001, 5.250%, 10/01/17 Orlando Utilities Commission, Florida, Water and Electric Revenue Refunding Bonds, Series 2002C: 3,170 5.250%, 10/01/17 10/12 at 100.00 Aa1 3,373,736 1,000 5.000%, 10/01/27 10/12 at 100.00 Aa1 992,180 3,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 3,046,050 Series 2002II, 5.125%, 7/01/26 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 12.9% 2,000 Broward County, Florida, Water and Sewer Utility Revenue 10/13 at 100.00 AAA 2,051,260 Bonds, Series 2003, 5.000%, 10/01/21 - MBIA Insured 3,310 Cocoa, Florida, Water and Sewer Revenue Refunding Bonds, No Opt. Call AAA 3,632,593 Series 2003, 5.500%, 10/01/23 - AMBAC Insured Hollywood, Florida, Water and Sewer Revenue Refunding and Improvement Bonds, Series 2003: 1,000 5.000%, 10/01/19 - FSA Insured 10/13 at 100.00 Aaa 1,036,280 4,000 5.000%, 10/01/20 - FSA Insured 10/13 at 100.00 Aaa 4,120,720 JEA, Florida, Water and Sewerage System Revenue Bonds, Series 2004A: 3,235 5.000%, 10/01/18 - FGIC Insured 10/13 at 100.00 AAA 3,367,279 5,090 5.000%, 10/01/19 - FGIC Insured 10/13 at 100.00 AAA 5,266,877 3,000 5.000%, 10/01/23 - FGIC Insured 10/13 at 100.00 AAA 3,040,830 1,065 Lee County Industrial Development Authority, Florida, Utilities 11/12 at 100.00 AAA 1,089,346 Revenue Bonds, Bonita Springs Utilities, Inc. Project, Series 2002, 5.000%, 11/01/19 (Alternative Minimum Tax) - MBIA Insured 1,500 Tampa Bay Water Utility System, Florida, Utility System No Opt. Call AAA 1,639,664 Revenue Bonds, Series 2004, 5.250%, 10/01/18 - FGIC Insured 2,000 Village Center Community Development District, Florida, 10/13 at 101.00 AAA 2,002,680 Utility Revenue Bonds, Series 2003, 5.125%, 10/01/28 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ $ 318,025 Total Long-Term Investments (cost $317,504,374) - 151.5% 320,702,417 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 0.5% 1,000 Florida Higher Educational Facilities Financing Authority, A-1+ 1,000,000 Revenue Bonds, Variable Rate Demand Obligations, St. Thomas University Project, Series 2003, 1.100%, 1/01/19+ - ------------------------------------------------------------------------------------------------------------------------------------ $ 1,000 Total Short-Term Investments (cost $1,000,000) 1,000,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $318,504,374) - 152.0% 321,702,417 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.3% 6,956,154 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (55.3)% (117,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 211,658,571 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. N/R Investment is not rated. + 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. 22 Nuveen Insured Florida Premium Income Municipal Fund (NFL) Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 2.5% $ 5,325 Escambia County Housing Finance Authority, Florida, Dormitory 6/09 at 101.00 AAA $ 5,663,244 Revenue Bonds, University of West Florida Foundation, Inc. Project, Series 1999, 5.750%, 6/01/31 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 12.6% 2,000 Brevard County Health Facilities Authority, Florida, Hospital 10/06 at 101.00 AAA 2,146,900 Revenue Bonds, Holmes Regional Medical Center Project, Series 1996, 5.625%, 10/01/14 - MBIA Insured 2,500 Hillsborough County Industrial Development Authority, Florida, No Opt. Call AAA 2,999,700 Industrial Development Revenue Bonds, University Community Hospital, Series 1994, 6.500%, 8/15/19 - MBIA Insured 5,000 Lee County Hospital Board of Directors, Florida, Fixed-Rate 4/07 at 102.00 AAA 5,324,450 Hospital Revenue Bonds, Lee Memorial Health System, Series 1997A, 5.750%, 4/01/22 - MBIA Insured 7,220 Miami-Dade County Health Facilities Authority, Florida, 8/11 at 101.00 AAA 7,224,332 Hospital Revenue Refunding Bonds, Miami Children's Hospital, Series 2001A, 5.125%, 8/15/26 - AMBAC Insured 5,000 North Broward Hospital District, Florida, Revenue Refunding 1/07 at 101.00 AAA 5,073,600 and Improvement Bonds, Series 1997, 5.375%, 1/15/24 - MBIA Insured 5,350 Polk County Industrial Development Authority, Florida, 9/04 at 101.00 AAA 5,447,209 Industrial Development Revenue Bonds, Winter Haven Hospital Project, Series 1985-2, 6.250%, 9/01/15 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 15.1% 980 Broward County, Florida, Housing Finance Authority, 6/07 at 102.00 AAA 1,006,117 Multifamily Housing Revenue Refunding Bonds, Pompano Oaks Apartments Project, Series 1997, GNMA Collateralized, 6.000%, 12/01/27 (Alternative Minimum Tax) Collier County Housing Finance Authority, Florida, Multifamily Housing Revenue Refunding Bonds, Saxon Manor Isles Project, Series 1998A, Subseries 1: 1,040 5.350%, 9/01/18 (Alternative Minimum Tax) - FSA Insured 3/08 at 101.00 AAA 1,064,170 1,400 5.400%, 9/01/23 (Alternative Minimum Tax) - FSA Insured 3/08 at 101.00 AAA 1,418,130 Collier County Housing Finance Authority, Florida, Multifamily Housing Revenue Bonds, Saxon Manor Isles Project, Series 1998B: 1,260 5.350%, 9/01/18 (Alternative Minimum Tax) - FSA Insured 3/08 at 101.00 AAA 1,289,282 1,000 5.400%, 9/01/23 (Alternative Minimum Tax) - FSA Insured 3/08 at 101.00 AAA 1,012,950 Dade County Housing Finance Authority, Florida, Multifamily Mortgage Revenue Bonds, Siesta Pointe Apartments Project, Series 1997A: 1,230 5.650%, 9/01/17 (Alternative Minimum Tax) - FSA Insured 9/07 at 101.00 AAA 1,267,441 1,890 5.750%, 9/01/29 (Alternative Minimum Tax) - FSA Insured 9/07 at 101.00 AAA 1,923,755 1,400 Florida Housing Finance Agency, Housing Revenue Bonds, 4/07 at 102.00 AAA 1,450,638 Riverfront Apartments Project, Series 1997A, 6.250%, 4/01/37 (Alternative Minimum Tax) - AMBAC Insured 1,590 Florida Housing Finance Agency, Housing Revenue Bonds, 12/05 at 102.00 AAA 1,635,076 Williamsburg Village Apartments Project, Series 1995E, 6.100%, 12/01/20 (Alternative Minimum Tax) - AMBAC Insured 1,000 Florida Housing Finance Agency, Housing Revenue Bonds, 5/06 at 102.00 AAA 1,035,730 Turtle Creek Apartments Project, Series 1996C-1, 6.100%, 5/01/16 (Alternative Minimum Tax) - AMBAC Insured Florida Housing Finance Agency, Housing Revenue Bonds, Sterling Palms Apartments Project, Series 1996D-1: 1,000 6.300%, 12/01/16 (Alternative Minimum Tax) - AMBAC Insured 6/06 at 102.00 AAA 1,038,760 1,500 6.400%, 12/01/26 (Alternative Minimum Tax) - AMBAC Insured 6/06 at 102.00 AAA 1,549,755 750 Florida Housing Finance Agency, Housing Revenue Bonds, 12/06 at 102.00 AAA 770,918 The Crossings at Indian Run Apartments Project, Series 1996V, 6.100%, 12/01/26 (Alternative Minimum Tax) - AMBAC Insured 2,535 Florida Housing Finance Corporation, GNMA Collateralized 9/10 at 102.00 AAA 2,605,498 Housing Revenue Bonds, Raintree Apartments, Series 2000J-1, 5.950%, 3/01/35 (Alternative Minimum Tax) 2,080 Florida Housing Finance Corporation, GNMA Collateralized 12/10 at 102.00 AAA 2,158,458 Housing Revenue Bonds, Cobblestone Apartments, Series 2000K-1, 6.000%, 12/01/33 (Alternative Minimum Tax) 23 Nuveen Insured Florida Premium Income Municipal Fund (NFL) (continued) Portfolio of INVESTMENTS June 30, 2004 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) Florida Housing Finance Corporation, Housing Revenue Bonds, Augustine Club Apartments, Series 2000D-1: $ 1,500 5.500%, 10/01/20 - MBIA Insured 10/10 at 102.00 Aaa $ 1,560,375 4,750 5.750%, 10/01/30 - MBIA Insured 10/10 at 102.00 Aaa 4,913,400 3,605 Jacksonville, Florida, GNMA Collateralized Housing Revenue 9/04 at 101.00 AAA 3,638,454 Refunding Bonds, Windermere Manor Apartments Project, Series 1993A, 5.875%, 3/20/28 1,425 Miami-Dade County Housing Finance Authority, Florida, 6/11 at 100.00 AAA 1,466,240 Multifamily Mortgage Revenue Bonds, Country Club Villas II Project, Series 2001-1A, 5.750%, 7/01/27 (Alternative Minimum Tax) - FSA Insured 1,065 Palm Beach County Housing Finance Authority, Florida, 7/12 at 100.00 AAA 1,071,177 Multifamily Housing Revenue Bonds, Westlake Apartments Phase II, Series 2002, 5.150%, 7/01/22 (Alternative Minimum Tax) - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 2.1% 710 Broward County Housing Finance Authority, Florida, Single 4/09 at 101.00 Aaa 710,540 Family Mortgage Revenue Refunding Bonds, Series 1999B, 5.250%, 4/01/31 (Alternative Minimum Tax) - MBIA Insured 1,130 Duval County Housing Finance Authority, Florida, Single Family 10/04 at 102.00 Aaa 1,155,301 Mortgage Revenue Bonds, GNMA Mortgage-Backed Securities Program, Series 1994, 6.700%, 10/01/26 (Alternative Minimum Tax) 1,585 Escambia County Housing Finance Authority, Florida, 4/08 at 102.00 Aaa 1,585,888 Multi-County Single Family Mortgage Revenue Bonds, Series 1999, 5.200%, 4/01/32 (Alternative Minimum Tax) - MBIA Insured 7,955 Florida Housing Finance Corporation, Homeowner 1/10 at 24.65 AAA 1,355,930 Mortgage Revenue Bonds, Series 2000-4, 0.000%, 7/01/30 (Alternative Minimum Tax) - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 2.3% 3,745 Broward County, Florida, General Obligation Bonds, 1/14 at 100.00 AA+ 3,843,306 Series 2004, 5.000%, 1/01/21 1,390 Venice, Florida, General Obligation Bonds, Series 2004, 2/14 at 100.00 AAA 1,403,122 5.000%, 2/01/24 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 43.5% 3,820 Broward County School Board, Florida, Certificates of 7/13 at 100.00 AAA 4,031,590 Participation, Series 2003, 5.250%, 7/01/19 - MBIA Insured 4,835 Cape Coral, Florida, Capital Improvement Revenue Bonds, 10/09 at 101.00 Aaa 4,993,685 Series 1999, 5.375%, 10/01/24 - FSA Insured 1,250 Dade County, Florida, Special Obligation and Refunding 10/06 at 102.00 AAA 1,230,663 Bonds, Series 1996B, 5.000%, 10/01/35 - AMBAC Insured 1,555 DeSoto County, Florida, Capital Improvement Revenue Bonds, 4/12 at 101.00 AAA 1,637,928 Series 2002, 5.250%, 10/01/20 - MBIA Insured Destin, Florida, Capital Improvement Revenue Bonds, Series 2002: 1,000 5.000%, 8/01/27 - MBIA Insured 8/12 at 101.00 Aaa 991,840 1,000 5.125%, 8/01/31 - MBIA Insured 8/12 at 101.00 Aaa 1,002,840 2,230 Florida Ports Financing Commission, Revenue Bonds, State 10/09 at 101.00 AAA 2,292,039 Transportation Trust Fund - Intermodal Program, Series 1999, 5.500%, 10/01/23 (Alternative Minimum Tax) - FGIC Insured 1,435 Florida Department of Environmental Protection, Florida 7/13 at 101.00 AAA 1,490,520 Forever Revenue Bonds, Series 2003A, 5.000%, 7/01/19 - FGIC Insured Florida Municipal Loan Council, Revenue Bonds, Series 2000B: 3,365 5.375%, 11/01/25 - MBIA Insured 11/10 at 101.00 AAA 3,482,169 3,345 5.375%, 11/01/30 - MBIA Insured 11/10 at 101.00 AAA 3,436,519 1,000 Florida Municipal Loan Council, Revenue Bonds, 11/11 at 101.00 AAA 1,059,790 Series 2001A, 5.250%, 11/01/18 - MBIA Insured 1,080 Gulf Breeze, Florida, Local Government Loan Program, 12/06 at 101.00 AAA 1,172,189 Remarketed 6-3-1996, Series 1985B, 5.900%, 12/01/15 (Mandatory put 12/01/10) - FGIC Insured 1,020 Gulf Breeze, Florida, Local Government Loan Program, 12/06 at 101.00 AAA 1,107,067 Remarketed 6-3-1996, Series 1985C, 5.900%, 12/01/15 (Mandatory put 12/01/08) - FGIC Insured 1,500 Gulf Breeze, Florida, Local Government Loan Program, 12/10 at 101.00 AAA 1,589,160 Remarketed 7-3-2000, Series 1985E, 5.750%, 12/01/20 (Mandatory put 12/01/19) - FGIC Insured 5,200 Gulf Breeze, Florida, Local Government Loan Program, 12/11 at 101.00 AAA 5,448,768 Remarketed 6-1-2001, Series 1985E, 4.750%, 12/01/20 (Mandatory put 12/01/11) - FGIC Insured 6,000 Hillsborough County School Board, Florida, Certificates of 7/13 at 100.00 AAA 5,936,640 Participation, Series 2003, 5.000%, 7/01/29 - MBIA Insured 24 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,500 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/13 at 100.00 AAA $ 1,583,685 Bonds, Series 2003, 5.250%, 10/01/20 - MBIA Insured 1,765 Julington Creek Plantation Community Development District, 5/12 at 101.00 AAA 1,771,848 Florida, Special Assessment Revenue Bonds, Series 2002, 4.750%, 5/01/19 - MBIA Insured Lakeland, Florida, Utility Tax Revenue Bonds, Series 2003B: 1,730 5.000%, 10/01/18 - AMBAC Insured 10/12 at 100.00 AAA 1,796,813 2,000 5.000%, 10/01/19 - AMBAC Insured 10/12 at 100.00 AAA 2,066,080 18,000 Miami-Dade County, Florida, Subordinate Special Obligation 4/08 at 49.54 AAA 7,141,860 Bonds, Series 1997A, 0.000%, 10/01/21 - MBIA Insured 1,000 Opa-Locka, Florida, Capital Improvement Revenue Bonds, 7/04 at 102.00 AAA 1,024,420 Series 1994, 7.000%, 1/01/14 - FGIC Insured 3,180 Orange County, Florida, Sales Tax Revenue Bonds, 1/13 at 100.00 AAA 3,315,722 Series 2002B, 5.125%, 1/01/19 - FGIC Insured 4,770 Orange County School Board, Florida, Master Lease Program, 8/07 at 101.00 Aaa 4,966,524 Certificates of Participation, Series 1997A, 5.375%, 8/01/22 - MBIA Insured 5,820 Osceola County, Florida, Transportation Revenue Bonds, 4/14 at 100.00 Aaa 5,911,665 Osceola Parkway, Series 2004, 5.000%, 4/01/23 - MBIA Insured 6,500 Palm Beach County, Florida, Administrative Complex Revenue No Opt. Call AAA 7,156,955 Refunding Bonds, Series 1993, 5.250%, 6/01/11 - FGIC Insured Palm Beach County, Florida, Criminal Justice Facilities, Revenue Refunding Bonds, Series 1993: 2,500 5.375%, 6/01/08 - FGIC Insured No Opt. Call AAA 2,726,850 4,000 5.375%, 6/01/10 - FGIC Insured No Opt. Call AAA 4,426,360 2,150 Palm Beach County School Board, Florida, Certificates of 8/14 at 100.00 AAA 2,171,113 Participation, Series 2004A, 5.000%, 8/01/24 - FGIC Insured 4,260 St. Lucie County School Board, Florida, Certificates of 7/14 at 100.00 AAA 4,285,006 Participation, Master Lease Program, Series 2004A, 5.000%, 7/01/24 - FSA Insured St. Petersburg, Florida, Professional Sports Facility Sales Tax Revenue Bonds, Series 2003: 1,405 5.125%, 10/01/19 - FSA Insured 10/13 at 100.00 Aaa 1,469,138 1,475 5.125%, 10/01/20 - FSA Insured 10/13 at 100.00 Aaa 1,533,277 1,555 5.125%, 10/01/21 - FSA Insured 10/13 at 100.00 Aaa 1,609,332 1,245 Tamarac, Florida, Sales Tax Revenue Bonds, Series 2002, 4/12 at 100.00 AAA 1,266,924 5.000%, 4/01/22 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 17.1% 9,000 Broward County, Florida, Airport System Revenue Bonds, 10/11 at 101.00 AAA 9,020,160 Series 2001J-1, 5.250%, 10/01/26 (Alternative Minimum Tax) - AMBAC Insured 1,100 Dade County, Florida, Seaport Revenue Refunding Bonds, 10/05 at 102.00 AAA 1,164,537 Series 1995, 5.750%, 10/01/15 - MBIA Insured 2,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/13 at 100.00 AAA 2,081,780 Revenue Refunding Bonds, Series 2003A, 5.000%, 10/01/17 - FSA Insured 3,800 Jacksonville Port Authority, Florida, Port Facilities Revenue 11/06 at 102.00 AAA 4,018,956 Bonds, Series 1996, 5.625%, 11/01/18 (Alternative Minimum Tax) - MBIA Insured 15,025 Lee County, Florida, Airport Revenue Bonds, Series 2000A, 10/10 at 101.00 AAA 15,938,520 6.000%, 10/01/32 (Alternative Minimum Tax) - FSA Insured 5,615 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/12 at 100.00 AAA 6,020,347 Miami International Airport, Series 2002, 5.750%, 10/01/19 (Alternative Minimum Tax) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 17.9% 3,750 Broward County Health Facilities Authority, Florida, Hospital 6/05 at 100.00 AAA 3,853,575 Revenue Bonds, Holy Cross Hospital, Inc., Series 1993, 5.850%, 6/01/12 (Pre-refunded to 6/01/05) - AMBAC Insured 1,025 Jacksonville, Florida, Sales Tax Revenue Bonds, River City 10/05 at 101.00 AAA 1,082,626 Renaissance Project, Series 1995, 5.500%, 10/01/10 (Pre-refunded to 10/01/05) - FGIC Insured 990 Orange County, Florida, Tourist Development Tax Revenue 10/04 at 100.00 AAA 995,693 Bonds, Series 1992A, 6.250%, 10/01/13 - AMBAC Insured 25 Nuveen Insured Florida Premium Income Municipal Fund (NFL) (continued) Portfolio of INVESTMENTS June 30, 2004 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (continued) St. Lucie County, Florida, Utility System Revenue Refunding Bonds, Series 1993: $ 5,000 5.500%, 10/01/15 - FGIC Insured 10/04 at 101.00 AAA $ 5,202,200 1,200 5.500%, 10/01/21 - FGIC Insured 10/04 at 101.00 AAA 1,246,296 7,855 Seminole County, Florida, Water and Sewer Revenue Refunding No Opt. Call AAA 9,216,036 and Improvement Bonds, Series 1992, 6.000%, 10/01/19 - MBIA Insured Sunrise, Florida, Utility System Revenue Bonds, Series 1996A: 6,900 5.750%, 10/01/16 (Pre-refunded to 10/01/06) - AMBAC Insured 10/06 at 101.00 AAA 7,498,506 8,700 5.750%, 10/01/21 (Pre-refunded to 10/01/06) - AMBAC Insured 10/06 at 101.00 AAA 9,454,638 1,500 Tampa, Florida, Healthcare System Revenue Bonds, Allegany 12/04 at 101.00 AAA 1,528,545 Health System - St. Joseph's Hospital, Series 1993, 5.125%, 12/01/23 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 4.0% 3,525 Palm Beach County Solid Waste Authority, Florida, Revenue No Opt. Call AAA 3,964,991 Refunding Bonds, Series 1997A, 6.000%, 10/01/09 - AMBAC Insured 8,000 Palm Beach County Solid Waste Authority, Florida, Revenue No Opt. Call AAA 5,022,160 Bonds, Series 2002B, 0.000%, 10/01/14 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 29.7% Broward County, Florida, Water and Sewer Utility Revenue Bonds, Series 2003: 4,775 5.000%, 10/01/21 - MBIA Insured 10/13 at 100.00 AAA 4,897,383 4,500 5.000%, 10/01/24 - MBIA Insured 10/13 at 100.00 AAA 4,541,175 Davie, Florida, Water and Sewer Revenue Refunding and Improvement Bonds, Series 2003: 910 5.250%, 10/01/17 - AMBAC Insured 10/13 at 100.00 AAA 975,720 475 5.250%, 10/01/18 - AMBAC Insured 10/13 at 100.00 AAA 506,687 Deltona, Florida, Utility Systems Water and Sewer Revenue Bonds, Series 2003: 1,250 5.250%, 10/01/22 - MBIA Insured 10/13 at 100.00 AAA 1,307,225 1,095 5.000%, 10/01/23 - MBIA Insured 10/13 at 100.00 AAA 1,111,535 1,225 5.000%, 10/01/24 - MBIA Insured 10/13 at 100.00 AAA 1,236,209 1,000 Florida Governmental Utility Authority, Utility Revenue Bonds, 7/09 at 101.00 Aaa 989,440 Golden Gate Utility System, Series 1999, 5.000%, 7/01/29 - AMBAC Insured 3,945 Florida Governmental Utility Authority, Utility Revenue Bonds, 10/13 at 100.00 AAA 4,004,570 Citrus Utility System, Series 2003, 5.000%, 10/01/23 - AMBAC Insured 8,000 Indian River County, Florida, Water and Sewer Revenue 9/08 at 102.00 AAA 8,151,200 Bonds, Series 1993A, 5.250%, 9/01/24 - FGIC Insured 2,000 Indian Trail Water Control District, Florida, Water Control 8/07 at 101.00 AAA 2,112,040 and Improvement Bonds, Unit of Development No. 17, Series 1996, 5.500%, 8/01/22 - MBIA Insured 3,450 JEA, Florida, Water and Sewerage System Revenue Bonds, 4/07 at 100.00 AAA 3,484,811 Series 2002A, 5.375%, 10/01/30 - MBIA Insured 2,510 JEA, Florida, Water and Sewerage System Revenue Bonds, 10/13 at 100.00 AAA 2,691,724 Series 2004A, 5.000%, 10/01/14 - FGIC Insured 1,450 Jupiter, Florida, Water Revenue Bonds, Series 2003, 10/13 at 100.00 AAA 1,479,508 5.000%, 10/01/22 - AMBAC Insured 2,000 Manatee County, Florida, Public Utilities Revenue Bonds, 10/13 at 100.00 Aaa 2,079,020 Series 2003, 5.125%, 10/01/20 - MBIA Insured Marco Island, Florida, Water Utility System Revenue Bonds, Series 2003: 1,350 5.250%, 10/01/17 - MBIA Insured 10/13 at 100.00 AAA 1,447,497 1,000 5.250%, 10/01/18 - MBIA Insured 10/13 at 100.00 AAA 1,066,710 1,750 Palm Bay, Florida, Utility System Revenue Bonds, Palm Bay 10/13 at 100.00 AAA 1,802,815 Utility Corporation, Series 2003, 5.000%, 10/01/20 - MBIA Insured Palm Coast, Florida, Water Utility System Revenue Bonds, Series 2003: 1,000 5.250%, 10/01/19 - MBIA Insured 10/13 at 100.00 AAA 1,061,230 500 5.250%, 10/01/20 - MBIA Insured 10/13 at 100.00 AAA 527,895 500 5.250%, 10/01/21 - MBIA Insured 10/13 at 100.00 AAA 525,575 Port St. Lucie, Florida, Stormwater Utility System Revenue Refunding Bonds, Series 2002: 1,190 5.250%, 5/01/15 - MBIA Insured 5/12 at 100.00 AAA 1,278,798 1,980 5.250%, 5/01/17 - MBIA Insured 5/12 at 100.00 AAA 2,104,562 26 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 10,000 Port St. Lucie, Florida, Utility System Revenue Bonds, 9/11 at 34.97 AAA $ 2,315,300 Series 2001, 0.000%, 9/01/29 - MBIA Insured 2,330 Port St. Lucie, Florida, Utility System Revenue Bonds, 9/13 at 100.00 AAA 2,389,299 Series 2003, 5.000%, 9/01/21 - MBIA Insured 1,000 Port St. Lucie, Florida, Utility System Revenue Bonds, 9/14 at 100.00 Aaa 1,027,630 Series 2004, 5.000%, 9/01/21 - MBIA Insured Sebring, Florida, Water and Wastewater Revenue Refunding Bonds, Series 2002: 1,360 5.250%, 1/01/17 - FGIC Insured 1/13 at 100.00 AAA 1,451,705 770 5.250%, 1/01/18 - FGIC Insured 1/13 at 100.00 AAA 817,971 500 5.250%, 1/01/20 - FGIC Insured 1/13 at 100.00 AAA 526,070 3,530 Seminole County, Florida, Water and Sewer Revenue No Opt. Call AAA 4,101,013 Refunding and Improvement Bonds, Series 1992, 6.000%, 10/01/19 - MBIA Insured 1,300 Sunrise, Florida, Utility System Revenue Refunding Bonds, 10/06 at 102.00 AAA 1,418,985 Series 1996, 5.800%, 10/01/11 - AMBAC Insured 2,000 Village Center Community Development District, Florida, 10/13 at 101.00 AAA 2,071,240 Utility Revenue Bonds, Series 2003, 5.250%, 10/01/23 - MBIA Insured 1,100 Wauchula, Florida, Utility Revenue Bonds, Series 2001A, 10/11 at 101.00 AAA 1,087,800 5.000%, 10/01/31 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ $ 343,130 Total Long-Term Investments (cost $312,919,423) - 146.8% 328,836,733 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.8% 6,128,518 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.6)% (111,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 223,965,251 ==================================================================================================================== 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 (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. See accompanying notes to financial statements. 27
Nuveen Insured Florida Tax-Free Advantage Municipal Fund (NWF) Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 12.4% $ 2,240 FSU Financial Assistance, Inc., Florida, General Revenue Bonds, No Opt. Call AAA $ 2,412,480 Educational and Athletic Facilities Improvements, Series 2004, 5.000%, 10/01/14 - AMBAC Insured 1,985 North Miami, Florida, Educational Facilities Revenue Refunding 4/13 at 100.00 AAA 2,039,389 Bonds, Johnson and Wales University, Series 2003A, 5.000%, 4/01/19 - XLCA Insured Volusia County Educational Facilities Authority, Florida, Revenue Refunding Bonds, Embry-Riddle Aeronautical University Project, Series 2003: 1,000 5.200%, 10/15/26 - RAAI Insured 10/13 at 100.00 AA 988,470 1,250 5.200%, 10/15/33 - RAAI Insured 10/13 at 100.00 AA 1,220,513 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 16.2% 4,000 Highlands County Health Facilities Authority, Florida, Revenue 11/13 at 100.00 A 4,101,080 Bonds, Adventist Health System/Sunbelt Obligated Group, Series 2003D, 5.875%, 11/15/29 3,000 Pinellas County Health Facilities Authority, Florida, Revenue 5/13 at 100.00 A1 3,080,490 Bonds, Baycare Health System, Series 2003, 5.750%, 11/15/27 1,500 South Miami Health Facilities Authority, Florida, Hospital 2/13 at 100.00 AA- 1,488,645 Revenue Bonds, Baptist Health Systems of South Florida, Series 2003, 5.200%, 11/15/28 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 2.5% 1,250 Florida Housing Finance Agency, Home Ownership Revenue No Opt. Call AAA 1,351,975 Refunding Bonds, Series 1987G-1, 8.595%, 11/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 8.2% 1,665 Florida State Board of Education, Full Faith and Credit 6/12 at 101.00 AAA 1,643,954 Public Education Capital Outlay Bonds, Series 2002A, 5.000%, 6/01/32 - MBIA Insured 2,660 Grand Prairie Independent School District, Dallas County, 2/13 at 100.00 AAA 2,731,847 Texas, General Obligation Bonds, Series 2003, 5.375%, 2/15/26 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 77.4% 1,000 Escambia County, Florida, Sales Tax Revenue Refunding 10/12 at 101.00 AAA 1,072,220 Bonds, Series 2002, 5.250%, 10/01/17 - AMBAC Insured 1,525 Fernandina Beach, Florida, Utility Acquisition and Improvement 9/13 at 100.00 AAA 1,547,875 Revenue Bonds, Series 2003, 5.000%, 9/01/23 - FGIC Insured 3,000 Florida Municipal Loan Council, Revenue Bonds, 12/13 at 100.00 AAA 2,961,540 Series 2003B, 5.000%, 12/01/28 - MBIA Insured 4,000 Hillsborough County School Board, Florida, Certificates of 7/13 at 100.00 AAA 3,957,760 Participation, Series 2003, 5.000%, 7/01/29 - MBIA Insured 2,270 Jacksonville, Florida, Local Government Sales Tax Revenue 10/12 at 100.00 AAA 2,430,534 Refunding and Improvement Bonds, Series 2002, 5.375%, 10/01/18 - FGIC Insured 2,265 Lakeland, Florida, Utility Tax Revenue Bonds, Series 2003B, 10/12 at 100.00 AAA 2,327,265 5.000%, 10/01/20 - AMBAC Insured 2,000 Orange County, Florida, Sales Tax Revenue Bonds, 1/13 at 100.00 AAA 2,108,460 Series 2002A, 5.125%, 1/01/17 - FGIC Insured 1,500 Orange County, Florida, Sales Tax Revenue Bonds, 1/13 at 100.00 AAA 1,504,095 Series 2002B, 5.125%, 1/01/32 - FGIC Insured 3,370 Osceola County School Board, Florida, Certificates of 6/12 at 101.00 Aaa 3,494,387 Participation, Series 2002A, 5.125%, 6/01/20 - AMBAC Insured 3,335 Palm Bay, Florida, Local Optional Gas Tax Revenue Bonds, 10/14 at 100.00 AAA 3,536,968 Series 2004, 5.250%, 10/01/20 - MBIA Insured Palm Beach County School Board, Florida, Certificates of Participation, Series 2002D: 2,950 5.250%, 8/01/20 - FSA Insured 8/12 at 100.00 AAA 3,097,441 3,670 5.000%, 8/01/28 - FSA Insured 8/12 at 100.00 AAA 3,638,365 3,460 Palm Beach Gardens, Florida, Special Obligation Revenue 2/13 at 100.00 AAA 3,560,617 Bonds, Series 2004, 5.000%, 5/01/20 - AMBAC Insured 28 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 2,115 Port St. Lucie, Florida, Sales Tax Revenue Bonds, Series 2003, 9/13 at 100.00 AAA $ 2,146,725 5.000%, 9/01/23 - MBIA Insured 4,000 St. Lucie County School Board, Florida, Certificates of 7/14 at 100.00 AAA 4,023,480 Participation, Master Lease Program, Series 2004A, 5.000%, 7/01/24 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 11.1% 2,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 1,976,300 Revenue Bonds, Series 2002A, 5.125%, 10/01/32 - FSA Insured 2,105 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/13 at 100.00 AAA 2,191,073 Revenue Refunding Bonds, Series 2003A, 5.000%, 10/01/17 - FSA Insured 1,730 Lee County, Florida, Transportation Facilities Revenue Bonds, 10/14 at 100.00 AAA 1,768,181 Series 2004B, 5.000%, 10/01/22 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 3.8% 2,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 2,030,700 Series 2002II, 5.125%, 7/01/26 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 19.0% 2,000 JEA, Florida, Water and Sewerage System Revenue Bonds, 4/07 at 100.00 AAA 2,020,180 Series 2002A, 5.375%, 10/01/30 - MBIA Insured 3,000 Marco Island, Florida, Water Utility System Revenue Bonds, 10/13 at 100.00 AAA 2,984,670 Series 2003, 5.000%, 10/01/27 - MBIA Insured 2,000 Miami-Dade County, Florida, Water and Sewer System 10/09 at 101.00 AAA 1,978,620 Revenue Bonds, Series 1999A, 5.000%, 10/01/29 - FGIC Insured 500 North Port, Florida, Utility System Revenue Bonds, 10/10 at 101.00 Aaa 501,015 Series 2000, 5.000%, 10/01/25 - FSA Insured 1,095 Palm Bay, Florida, Utility System Revenue Bonds, 10/14 at 100.00 AAA 1,161,313 Series 2004, 5.250%, 10/01/20 - MBIA Insured 1,500 Port St. Lucie, Florida, Stormwater Utility System Revenue 5/12 at 100.00 AAA 1,515,884 Refunding Bonds, Series 2002, 5.000%, 5/01/23 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ $ 78,940 Total Long-Term Investments (cost $80,825,823) - 150.6% 80,594,511 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.6% 1,909,139 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (54.2)% (29,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 53,503,650 ====================================================================================================================
At least 80% of the Fund's net assets (including net assets applicable to Preferred shares) are invested in municipal securities that are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance which ensures the timely payment of principal and interest. Up to 20% of the Fund's net assets (including net assets applicable to Preferred shares) may be invested in municipal securities that are (i) either backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities (also ensuring the timely payment of principal and interest), or (ii) 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 (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. See accompanying notes to financial statements. 29 Statement of ASSETS AND LIABILITIES June 30, 2004
FLORIDA FLORIDA INSURED FLORIDA INSURED FLORIDA INVESTMENT QUALITY QUALITY INCOME PREMIUM INCOME TAX-FREE ADVANTAGE (NQF) (NUF) (NFL) (NWF) - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at market value (cost $362,913,240, $318,504,374, $312,919,423 and $80,825,823, respectively) $376,506,585 $321,702,417 $328,836,733 $80,594,511 Cash -- 144,786 1,890,110 901,417 Receivables: Interest 5,183,396 4,548,703 4,222,476 1,042,732 Investments sold 2,805,288 2,475,000 262,493 5,000 Other assets 22,623 32,264 22,832 5,102 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 384,517,892 328,903,170 335,234,644 82,548,762 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 1,280,878 -- -- -- Payable for investments purchased 5,920,852 -- -- -- Accrued expenses: Management fees 195,910 171,382 174,653 22,185 Other 68,641 63,053 78,256 19,586 Preferred share dividends payable 6,564 10,164 16,484 3,341 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 7,472,845 244,599 269,393 45,112 - ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 132,000,000 117,000,000 111,000,000 29,000,000 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $245,045,047 $211,658,571 $223,965,251 $53,503,650 ==================================================================================================================================== Common shares outstanding 16,547,432 14,287,006 14,365,771 3,881,364 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.81 $ 14.81 $ 15.59 $ 13.78 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 165,474 $ 142,870 $ 143,658 $ 38,814 Paid-in surplus 231,093,032 205,859,564 203,931,054 54,731,858 Undistributed (Over-distribution of) net investment income 2,993,802 2,471,686 2,699,782 (185,493) Accumulated net realized gain (loss) from investments (2,800,606) (13,592) 1,273,447 (850,217) Net unrealized appreciation (depreciation) of investments 13,593,345 3,198,043 15,917,310 (231,312) - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $245,045,047 $211,658,571 $223,965,251 $53,503,650 ==================================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 30 Statement of OPERATIONS Year Ended June 30, 2004
FLORIDA FLORIDA INSURED FLORIDA INSURED FLORIDA INVESTMENT QUALITY QUALITY INCOME PREMIUM INCOME TAX-FREE ADVANTAGE (NQF) (NUF) (NFL) (NWF) - ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 20,671,489 $ 17,592,725 $ 17,359,111 $ 4,030,297 - ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 2,453,270 2,140,073 2,184,865 547,585 Preferred shares - auction fees 331,075 293,742 278,879 72,736 Preferred shares - dividend disbursing agent fees 20,053 30,082 20,053 10,028 Shareholders' servicing agent fees and expenses 28,573 19,565 21,165 798 Custodian's fees and expenses 83,495 70,619 76,574 23,154 Trustees' fees and expenses 7,205 5,944 6,107 1,943 Professional fees 155,204 82,697 19,477 11,326 Shareholders' reports - printing and mailing expenses 28,131 21,593 23,442 7,947 Stock exchange listing fees 15,826 13,417 13,350 338 Investor relations expense 32,232 27,689 15,220 8,601 Other expenses 17,305 19,131 16,704 7,952 - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 3,172,369 2,724,552 2,675,836 692,408 Custodian fee credit (14,972) (9,404) (11,110) (14,309) Expense reimbursement -- -- -- (269,580) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 3,157,397 2,715,148 2,664,726 408,519 - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 17,514,092 14,877,577 14,694,385 3,621,778 - ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investments (2,803,982) (32,845) 1,274,638 (853,466) Change in net unrealized appreciation (depreciation) of investments (11,261,628) (11,076,128) (13,917,598) (2,969,559) - ------------------------------------------------------------------------------------------------------------------------------------ Net gain (loss) from investments (14,065,610) (11,108,973) (12,642,960) (3,823,025) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (935,071) (760,122) (788,965) (201,060) From accumulated net realized gains from investments (222,346) (126,819) (113,631) -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (1,157,417) (886,941) (902,596) (201,060) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $ 2,291,065 $ 2,881,663 $ 1,148,829 $ (402,307) ==================================================================================================================================== See accompanying notes to financial statements. 31
Statement of CHANGES IN NET ASSETS
FLORIDA INVESTMENT QUALITY (NQF) FLORIDA QUALITY INCOME (NUF) --------------------------------- --------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 6/30/04 6/30/03 6/30/04 6/30/03 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 17,514,092 $ 18,145,230 $ 14,877,577 $ 15,393,583 Net realized gain (loss) from investments (2,803,982) 3,875,859 (32,845) 3,463,251 Change in net unrealized appreciation (depreciation) of investments (11,261,628) 8,853,791 (11,076,128) 6,508,220 Distributions to Preferred shareholders: From net investment income (935,071) (1,204,511) (760,122) (1,022,349) From accumulated net realized gains from investments (222,346) (226,303) (126,819) (275,955) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 2,291,065 29,444,066 2,881,663 24,066,750 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (16,718,800) (16,027,701) (14,211,785) (14,168,989) From accumulated net realized gains from investments (3,231,994) (2,098,066) (2,042,597) (2,512,996) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (19,950,794) (18,125,767) (16,254,382) (16,681,985) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares -- -- -- -- Net proceeds from shares issued to shareholders due to reinvestment of distributions 848,891 704,166 720,589 874,329 Preferred shares offering costs -- -- -- 7,500 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 848,891 704,166 720,589 881,829 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (16,810,838) 12,022,465 (12,652,130) 8,266,594 Net assets applicable to Common shares at the beginning of period 261,855,885 249,833,420 224,310,701 216,044,107 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $245,045,047 $261,855,885 $211,658,571 $224,310,701 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 2,993,802 $ 3,136,957 $ 2,471,686 $ 2,585,269 ====================================================================================================================================
See accompanying notes to financial statements. 32
INSURED FLORIDA INSURED FLORIDA PREMIUM INCOME (NFL) TAX-FREE ADVANTAGE (NWF) --------------------------------- -------------------------------- FOR THE PERIOD 11/21/02 (COMMENCEMENT OF OPERATIONS) YEAR ENDED YEAR ENDED YEAR ENDED THROUGH 6/30/04 6/30/03 6/30/04 6/30/03 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 14,694,385 $ 14,925,713 $ 3,621,778 $ 1,548,813 Net realized gain (loss) from investments 1,274,638 2,057,125 (853,466) 17,814 Change in net unrealized appreciation (depreciation) of investments (13,917,598) 10,662,174 (2,969,559) 2,738,247 Distributions to Preferred shareholders: From net investment income (788,965) (1,147,462) (201,060) (126,559) From accumulated net realized gains from investments (113,631) (14,829) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 1,148,829 26,482,721 (402,307) 4,178,315 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (13,709,147) (13,374,479) (3,352,591) (1,675,194) From accumulated net realized gains from investments (1,461,384) (125,967) -- -- Decrease in net assets applicable to Common shares from distributions to Common shareholders (15,170,531) (13,500,446) (3,352,591) (1,675,194) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares -- -- -- 55,321,650 Net proceeds from shares issued to shareholders due to reinvestment of distributions 496,462 547,078 43,015 24,090 Preferred shares offering costs -- -- (7,003) (726,600) Net increase in net assets applicable to Common shares from capital share transactions 496,462 547,078 36,012 54,619,140 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (13,525,240) 13,529,353 (3,718,886) 57,122,261 Net assets applicable to Common shares at the beginning of period 237,490,491 223,961,138 57,222,536 100,275 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $223,965,251 $237,490,491 $53,503,650 $57,222,536 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 2,699,782 $ 2,503,509 $ (185,493) $ (253,061) ====================================================================================================================================
See accompanying notes to financial statements. 33 Notes to FINANCIAL STATEMENTS 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The state Funds (the "Funds") covered in this report and their corresponding Common share stock exchange symbols are Nuveen Florida Investment Quality Municipal Fund (NQF), Nuveen Florida Quality Income Municipal Fund (NUF), Nuveen Insured Florida Premium Income Municipal Fund (NFL) and Nuveen Insured Florida Tax-Free Advantage Municipal Fund (NWF). Common shares of Florida Investment Quality (NQF), Florida Quality Income (NUF) and Insured Florida Premium Income (NFL) are traded on the New York Stock Exchange while Common shares of Insured Florida Tax-Free Advantage (NWF) are traded on the American Stock Exchange. The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end management investment companies. Prior to the commencement of operations of Insured Florida Tax-Free Advantage (NWF), the Fund had no operations other than those related to organizational matters, the initial capital contribution of $100,275 by Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc., and the recording of the organization expenses ($11,500) and its reimbursement by Nuveen Investments, LLC, 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 Florida Tax-Free Advantage (NWF) the alternative minimum tax applicable to individuals, by investing primarily in a diversified portfolio of municipal obligations issued by state and local government authorities within the state of Florida. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles. 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 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, evaluations of anticipated cash flows or collateral and general market conditions. If it is determined that market prices for a security are unavailable or inappropriate, the Board of 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 June 30, 2004, Florida Investment Quality (NQF) had an outstanding delayed delivery purchase commitment of $5,920,852. 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. Professional Fees Professional fees presented in the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment, or to pursue other claims or legal actions on behalf of the Fund's shareholders. Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute all income and capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal income tax, and in the case of Insured Florida Tax-Free Advantage (NWF) the alternative minimum tax applicable to individuals, to retain such tax-exempt status when distributed to shareholders of the Funds. The investment policies of Insured Florida Tax-Free Advantage (NWF) permit the Fund to invest in a limited amount of out-of-state securities. Although the Fund may pursue this strategy from time to time, this strategy will not impact the tax-exempt status of the Fund's shares or of its distributions to its shareholders. All monthly tax-exempt income dividends paid during the fiscal year ended June 30, 2004, have been designated Exempt Interest Dividends. Net realized capital gains and ordinary income distributions made by the Funds are subject to federal taxation. 34 Dividends and Distributions to Common Shareholders Dividends from tax-exempt net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to Common shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles. Preferred Shares The Funds have issued and outstanding $25,000 stated value Preferred shares. Each Fund's Preferred shares are issued in one or more 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: INSURED INSURED FLORIDA FLORIDA FLORIDA FLORIDA INVESTMENT QUALITY PREMIUM TAX-FREE QUALITY INCOME INCOME ADVANTAGE (NQF) (NUF) (NFL) (NWF) - -------------------------------------------------------------------------------- Number of shares: Series M -- 1,700 -- -- Series T 3,080 -- -- -- Series W -- -- 1,640 1,160 Series TH -- 1,700 2,800 -- Series F 2,200 1,280 -- -- - -------------------------------------------------------------------------------- Total 5,280 4,680 4,440 1,160 ================================================================================ Effective January 17, 2003, Insured Florida Tax-Free Advantage (NWF) issued 1,160 Series W, $25,000 stated value Preferred shares. Insurance Insured Florida Premium Income (NFL) invests 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 Florida Tax-Free Advantage (NWF) invests at least 80% of its net assets (including net assets applicable to Preferred shares) in municipal securities that are covered by insurance. The Fund may also invest up to 20% of its net assets (including net assets applicable to Preferred shares) in municipal securities which are either (i) backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, or (ii) 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 fiscal year ended June 30, 2004. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Indemnifications Under the Fund's organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. 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 Florida Quality Income (NUF)and Insured Florida Tax-Free Advantage (NWF). Florida Quality Income's (NUF) and Insured Florida 35 Notes to FINANCIAL STATEMENTS (continued) Tax-Free Advantage's (NWF) share of Common share offering costs ($467,902 and $116,100, respectively) were recorded as a reduction of the proceeds from the sale of Common shares. Costs incurred by Florida Quality Income (NUF) and Insured Florida Tax-Free Advantage (NWF) in connection with their offering of Preferred shares ($1,936,308 and $733,603, respectively) were recorded as a reduction to paid-in surplus. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates. 2. FUND SHARES Transactions in Common and Preferred shares were as follows:
FLORIDA FLORIDA INVESTMENT QUALITY (NQF) QUALITY INCOME (NUF) ------------------------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 6/30/04 6/30/03 6/30/04 6/30/03 - --------------------------------------------------------------------------------------------------------- Common shares: Shares sold -- -- -- -- Shares issued to shareholders due to reinvestment of distributions 51,656 43,415 44,713 53,877 - --------------------------------------------------------------------------------------------------------- 51,656 43,415 44,713 53,877 ========================================================================================================= Preferred shares sold -- -- -- -- ========================================================================================================= INSURED FLORIDA INSURED FLORIDA PREMIUM INCOME (NFL) TAX-FREE ADVANTAGE (NWF) ------------------------------------------------- FOR THE PERIOD 11/21/02 (COMMENCEMENT YEAR ENDED YEAR ENDED YEAR ENDED OF OPERATIONS) 6/30/04 6/30/03 6/30/04 THROUGH 6/30/03 - --------------------------------------------------------------------------------------------------------- Common shares: Shares sold -- -- -- 3,870,000 Shares issued to shareholders due to reinvestment of distributions 29,319 32,881 2,781 1,583 - --------------------------------------------------------------------------------------------------------- 29,319 32,881 2,781 3,871,583 ========================================================================================================= Preferred shares sold -- -- -- 1,160 =========================================================================================================
3. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities for the fiscal year ended June 30, 2004, were as follows:
INSURED INSURED FLORIDA FLORIDA FLORIDA FLORIDA INVESTMENT QUALITY PREMIUM TAX-FREE QUALITY INCOME INCOME ADVANTAGE (NQF) (NUF) (NFL) (NWF) - --------------------------------------------------------------------------------------------------------- Purchases $86,397,122 $124,469,935 $129,078,894 $111,472,270 Sales and maturities 86,071,128 130,393,289 140,372,291 114,017,272 =========================================================================================================
36 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 June 30, 2004, the cost of investments were as follows:
INSURED INSURED FLORIDA FLORIDA FLORIDA FLORIDA INVESTMENT QUALITY PREMIUM TAX-FREE QUALITY INCOME INCOME ADVANTAGE (NQF) (NUF) (NFL) (NWF) - --------------------------------------------------------------------------------------------------------- Cost of investments $362,698,805 $318,502,244 $312,883,116 $80,825,823 =========================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments at June 30, 2004, were as follows:
INSURED INSURED FLORIDA FLORIDA FLORIDA FLORIDA INVESTMENT QUALITY PREMIUM TAX-FREE QUALITY INCOME INCOME ADVANTAGE (NQF) (NUF) (NFL) (NWF) - --------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $17,181,384 $ 6,420,832 $16,139,321 $ 371,661 Depreciation (3,373,604) (3,220,659) (185,704) (602,973) - --------------------------------------------------------------------------------------------------------- Net unrealized appreciation of investments $13,807,780 $ 3,200,173 $15,953,617 $ (231,312) =========================================================================================================
The tax components of undistributed net investment income and net realized gains at June 30, 2004, were as follows:
INSURED INSURED FLORIDA FLORIDA FLORIDA FLORIDA INVESTMENT QUALITY PREMIUM TAX-FREE QUALITY INCOME INCOME ADVANTAGE (NQF) (NUF) (NFL) (NWF) - --------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income $4,152,700 $3,661,789 $3,661,547 $97,307 Undistributed net ordinary income * 31,488 3,752 22,105 -- Undistributed net long-term capital gains -- -- 1,419,016 -- =========================================================================================================
* Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. The tax character of distributions paid during the fiscal years ended June 30, 2004 and June 30, 2003, was designated for purposes of the dividends paid deduction as follows:
INSURED INSURED FLORIDA FLORIDA FLORIDA FLORIDA INVESTMENT QUALITY PREMIUM TAX-FREE QUALITY INCOME INCOME ADVANTAGE 2004 (NQF) (NUF) (NFL) (NWF) - --------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $17,592,549 $14,970,905 $14,475,786 $3,554,044 Distributions from net ordinary income * 212,385 266,129 328,384 -- Distributions from net long-term capital gains 3,289,856 1,903,287 1,248,969 -- =========================================================================================================
INSURED INSURED FLORIDA FLORIDA FLORIDA FLORIDA INVESTMENT QUALITY PREMIUM TAX-FREE QUALITY INCOME INCOME ADVANTAGE 2003 (NQF) (NUF) (NFL) (NWF) - --------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $17,151,125 $15,182,483 $14,483,420 $1,518,559 Distributions from net ordinary income * 271,066 62,185 -- -- Distributions from net long-term capital gains 2,068,358 2,736,853 140,796 -- =========================================================================================================
* Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. 37 Notes to FINANCIAL STATEMENTS (continued) At June 30, 2004, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows: INSURED FLORIDA FLORIDA FLORIDA INVESTMENT QUALITY TAX-FREE QUALITY INCOME ADVANTAGE (NQF) (NUF) (NWF) - -------------------------------------------------------------------------------- Expiration year: 2012 $150,118 $13,592 $837,725 ================================================================================ The following Funds have elected to defer net realized losses from investments incurred from November 1, 2003 through June 30, 2004 ("post-October losses") in accordance with Federal income tax regulations. The following post-October losses are treated as having arisen in the following fiscal year: INSURED FLORIDA FLORIDA INVESTMENT TAX-FREE QUALITY ADVANTAGE (NQF) (NWF) - -------------------------------------------------------------------------------- $2,650,488 $12,492 ================================================================================ 5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Under the Funds' (excluding Insured Florida Tax-Free Advantage (NWF)) 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 ================================================================================ 38 Under Insured Florida Tax-Free Advantage's (NWF) investment management agreement with the Adviser, the 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 the 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 ================================================================================ 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 Trustees who are affiliated with the Adviser or to their officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Trustees has adopted a deferred compensation plan for independent Trustees that enabled Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised Funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised Funds. As approved by the Board of Trustees, a complex-wide fee schedule for all Funds managed by the Adviser and its affiliates went into effect on August 1, 2004. The implementation of this complex-wide fee schedule is expected to result in a marginal immediate decrease in the rates (approximately .004%) at which management fees are to be paid by the Funds. As assets in the Nuveen Fund complex grow, the management fee rates to be paid by the Funds will decrease further. Under no circumstances will the complex-wide fee schedule result in an increase in the rates at which management fees would be paid by the Funds if the complex-wide fee schedule were not implemented. For the first eight years of Insured Florida Tax-Free Advantage's (NWF) 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 Florida Tax-Free Advantage (NWF) for any portion of its fees and expenses beyond November 30, 2010. 6. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on August 2, 2004, to shareholders of record on July 15, 2004, as follows: INSURED INSURED FLORIDA FLORIDA FLORIDA FLORIDA INVESTMENT QUALITY PREMIUM TAX-FREE QUALITY INCOME INCOME ADVANTAGE (NQF) (NUF) (NFL) (NWF) - -------------------------------------------------------------------------------- Dividend per share $.0845 $.0830 $.0800 $.0720 ================================================================================ 39 Financial HIGHLIGHTS 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 ==================================================================================================================================== FLORIDA INVESTMENT QUALITY (NQF) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 6/30: 2004 $15.87 $1.06 $ (.84) $(.06) $(.01) $ .15 $(1.01) $(.20) $(1.21) 2003 15.19 1.10 .76 (.07) (.01) 1.78 (.97) (.13) (1.10) 2002 14.76 1.13 .41 (.11) (.02) 1.41 (.92) (.06) (.98) 2001 14.24 1.19 .52 (.30) -- 1.41 (.89) -- (.89) 2000 15.03 1.21 (.71) (.29) (.01) .20 (.94) (.03) (.97) FLORIDA QUALITY INCOME (NUF) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 6/30: 2004 15.75 1.04 (.78) (.05) (.01) .20 (1.00) (.14) (1.14) 2003 15.23 1.08 .71 (.07) (.02) 1.70 (1.00) (.18) (1.18) 2002 15.02 1.18 .14 (.12) (.01) 1.19 (.94) (.04) (.98) 2001 14.57 1.20 .43 (.30) -- 1.33 (.88) -- (.88) 2000 15.37 1.19 (.77) (.29) -- .13 (.91) -- (.91) INSURED FLORIDA PREMIUM INCOME (NFL) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 6/30: 2004 16.57 1.02 (.88) (.05) (.01) .08 (.96) (.10) (1.06) 2003 15.66 1.04 .89 (.08) -- 1.85 (.93) (.01) (.94) 2002 15.30 1.07 .27 (.12) -- 1.22 (.86) -- (.86) 2001 14.25 1.09 1.02 (.28) -- 1.83 (.78) -- (.78) 2000 14.86 1.06 (.59) (.28) -- .19 (.80) -- (.80) INSURED FLORIDA TAX-FREE ADVANTAGE (NWF) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 6/30: 2004 14.75 .93 (.99) (.05) -- (.11) (.86) -- (.86) 2003(a) 14.33 .40 .70 (.03) -- 1.07 (.43) -- (.43) ==================================================================================================================================== Total Returns ------------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** =================================================================================== FLORIDA INVESTMENT QUALITY (NQF) - ----------------------------------------------------------------------------------- Year Ended 6/30: 2004 $ -- $14.81 $14.0300 (9.61)% .95% 2003 -- 15.87 16.7500 13.28 12.02 2002 -- 15.19 15.8300 13.27 9.77 2001 -- 14.76 14.8900 12.03 10.11 2000 (.02) 14.24 14.1250 (5.54) 1.39 FLORIDA QUALITY INCOME (NUF) - ----------------------------------------------------------------------------------- Year Ended 6/30: 2004 -- 14.81 13.8400 (10.29) 1.29 2003 -- 15.75 16.6000 11.56 11.45 2002 -- 15.23 15.9900 13.80 8.15 2001 -- 15.02 14.9700 12.58 9.37 2000 (.02) 14.57 14.1250 (4.28) .87 INSURED FLORIDA PREMIUM INCOME (NFL) - ----------------------------------------------------------------------------------- Year Ended 6/30: 2004 -- 15.59 14.2400 (11.70) .46 2003 -- 16.57 17.2200 16.05 12.10 2002 -- 15.66 15.7100 14.29 8.13 2001 -- 15.30 14.5400 18.32 13.09 2000 -- 14.25 13.0000 (5.17) 1.47 INSURED FLORIDA TAX-FREE ADVANTAGE (NWF) - ----------------------------------------------------------------------------------- Year Ended 6/30: 2004 -- 13.78 12.9400 (13.56) (.79) 2003(a) (.22) 14.75 15.8700 8.82 6.08 =================================================================================== 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 ========================================================================================================================= FLORIDA INVESTMENT QUALITY (NQF) - ------------------------------------------------------------------------------------------------------------------------- Year Ended 6/30: 2004 $245,045 1.25% 6.92% 1.25% 6.92% 23% 2003 261,856 1.20 7.00 1.19 7.01 16 2002 249,833 1.26 7.53 1.23 7.56 34 2001 242,223 1.33 8.10 1.29 8.14 28 2000 233,290 1.26 8.45 1.24 8.48 16 FLORIDA QUALITY INCOME (NUF) - ------------------------------------------------------------------------------------------------------------------------- Year Ended 6/30: 2004 211,659 1.25 6.83 1.25 6.83 38 2003 224,311 1.24 6.92 1.23 6.94 28 2002 216,044 1.28 7.81 1.26 7.83 30 2001 212,618 1.33 8.00 1.25 8.08 20 2000 206,212 1.26 8.08 1.23 8.10 20 INSURED FLORIDA PREMIUM INCOME (NFL) - ------------------------------------------------------------------------------------------------------------------------- Year Ended 6/30: 2004 223,965 1.16 6.36 1.15 6.36 38 2003 237,490 1.18 6.41 1.16 6.42 14 2002 223,961 1.21 6.89 1.21 6.89 8 2001 218,642 1.27 7.22 1.26 7.23 20 2000 203,591 1.30 7.53 1.29 7.54 22 INSURED FLORIDA TAX-FREE ADVANTAGE (NWF) - ------------------------------------------------------------------------------------------------------------------------- Year Ended 6/30: 2004 53,504 1.25 6.04 .74 6.56 130 2003(a) 57,223 1.15* 4.18* .67* 4.66* 46 ========================================================================================================================= Preferred Shares at End of Period ------------------------------------------ Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ======================================================================= FLORIDA INVESTMENT QUALITY (NQF) - ----------------------------------------------------------------------- Year Ended 6/30: 2004 $132,000 $25,000 $71,410 2003 132,000 25,000 74,594 2002 132,000 25,000 72,317 2001 132,000 25,000 70,876 2000 132,000 25,000 69,184 FLORIDA QUALITY INCOME (NUF) - ----------------------------------------------------------------------- Year Ended 6/30: 2004 117,000 25,000 70,226 2003 117,000 25,000 72,930 2002 117,000 25,000 71,163 2001 117,000 25,000 70,431 2000 117,000 25,000 69,062 INSURED FLORIDA PREMIUM INCOME (NFL) - ----------------------------------------------------------------------- Year Ended 6/30: 2004 111,000 25,000 75,443 2003 111,000 25,000 78,489 2002 111,000 25,000 75,442 2001 111,000 25,000 74,244 2000 111,000 25,000 70,854 INSURED FLORIDA TAX-FREE ADVANTAGE (NWF) - ----------------------------------------------------------------------- Year Ended 6/30: 2004 29,000 25,000 71,124 2003(a) 29,000 25,000 74,330 =======================================================================
* 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 at net asset value, reinvested capital gains distributions at net asset value, 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, where applicable. (a) For the period November 21, 2002 (commencement of operations) through June 30, 2003. See accompanying notes to financial statements. 40-41 SPREAD Board Members AND OFFICERS The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board Members of the Funds. The number of board members of the Funds is currently set at seven. None of the board members who are not "interested" persons of the Funds has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the board members and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER - ------------------------------------------------------------------------------------------------------------------------------------ BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS: - ------------------------------------------------------------------------------------------------------------------------------------ Timothy R. Schwertfeger (1) Chairman of 1994 Chairman and Director (since 1996) of Nuveen Investments, 145 3/28/49 the Board Inc. and Nuveen Investments, LLC; Director (since 1992) and 333 W. Wacker Drive and Trustee Chairman (since 1996) of Nuveen Advisory Corp. and Nuveen Chicago, IL 60606 Institutional Advisory Corp.; Chairman and Director (since 1997) of Nuveen Asset Management, Inc.; Director (since 1996) of Institutional Capital Corporation; Chairman and Director (since 1999) of Rittenhouse Asset Management, Inc.; Chairman of Nuveen Investments Advisers Inc. (since 2002). BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS: - ------------------------------------------------------------------------------------------------------------------------------------ Robert P. Bremner Board member 1997 Private Investor and Management Consultant. 145 8/22/40 333 W. Wacker Drive Chicago, IL 60606 - ------------------------------------------------------------------------------------------------------------------------------------ Lawrence H. Brown Board member 1993 Retired (1989) as Senior Vice President of The Northern 145 7/29/34 Trust Company; Director, Community Advisory Board for 333 W. Wacker Drive Highland Park and Highwood, United Way of the North Chicago, IL 60606 Shore (since 2002). - ------------------------------------------------------------------------------------------------------------------------------------ Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private philanthropic 145 10/22/48 corporation (since 1996); Director and Vice Chairman, United 333 W. Wacker Drive Fire & Casualty Company; formerly Director, Federal Reserve Chicago, IL 60606 Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. - ------------------------------------------------------------------------------------------------------------------------------------ William C. Hunter Board member 2004 Dean and Distinguished Professor of Finance, School of 145 3/16/48 Business at the University of Connecticut (since 2003); 333 W. Wacker Drive previously Senior Vice President and Director of Research Chicago, IL 60606 at the Federal Reserve Bank of Chicago (1995-2003); Director, Credit Research Center at Georgetown University; Director of Xerox Corporation (since 2004). 42 NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER - ------------------------------------------------------------------------------------------------------------------------------------ BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED): - ------------------------------------------------------------------------------------------------------------------------------------ William J. Schneider Board member 1997 Senior Partner and Chief Operating Officer, Miller-Valentine 145 9/24/44 Group, Vice President, Miller-Valentine Realty, a construction 333 W. Wacker Drive company; Chair, Miami Valley Hospital; Chair, Dayton Chicago, IL 60606 Development Coalition; formerly, Member, Community Advisory Board, National City Bank, Dayton, Ohio and Business Advisory Council, Cleveland Federal Reserve Bank. - ------------------------------------------------------------------------------------------------------------------------------------ Judith M. Stockdale Board member 1997 Executive Director, Gaylord and Dorothy Donnelley 145 12/29/47 Foundation (since 1994); prior thereto, Executive Director, 333 W. Wacker Drive Great Lakes Protection Fund (from 1990 to 1994) Chicago, IL 60606 NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OFFICER - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: - ------------------------------------------------------------------------------------------------------------------------------------ Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 145 9/9/56 Administrative Associate General Counsel, formerly, Vice President and 333 W. Wacker Drive Officer Assistant General Counsel of Nuveen Investments, LLC; Chicago, IL 60606 Managing Director (since 2002), General Counsel and Assistant Secretary, formerly, Vice President of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.; Managing Director (since 2002), Assistant Secretary and Associate General Counsel, formerly, Vice President (since 2000), of Nuveen Asset Management, Inc. Assistant Secretary of Nuveen Investments, Inc. (since 1994); Assistant Secretary of NWQ Investment Management Company, LLC (since 2002); Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); Managing Director, Associate General Counsel and Assistant Secretary of Rittenhouse Asset Management, Inc. (since 2003); Chartered Financial Analyst. - ------------------------------------------------------------------------------------------------------------------------------------ Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant Vice 145 2/3/66 and Assistant President (since 2000), previously, Associate of Nuveen 333 W. Wacker Drive Secretary Investments, LLC. Chicago, IL 60606 43 Board Members AND OFFICERS (CONTINUED) NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OFFICER - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS (CONTINUED): - ------------------------------------------------------------------------------------------------------------------------------------ Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999), 145 11/28/67 and Treasurer prior thereto, Assistant Vice President (since 1997); Vice 333 W. Wacker Drive President and Treasurer of Nuveen Investments, Inc. (since Chicago, IL 60606 1999); Vice President and Treasurer of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp (since 1999); Vice President and Treasurer of Nuveen Asset Management, Inc. (since 2002) and of Nuveen Investments Advisers Inc. (since 2002); Assistant Treasurer of NWQ Investment Management Company, LLC (since 2002); Vice President and Treasurer of Nuveen Rittenhouse Asset Management, Inc. (since 2003); Chartered Financial Analyst. - ------------------------------------------------------------------------------------------------------------------------------------ Jessica R. Droeger Vice President 2000 Vice President (since 2002) and Assistant General Counsel 145 9/24/64 and Secretary (since 1998); formerly, Assistant Vice President (since 1998) 333 W. Wacker Drive of Nuveen Investments, LLC; Vice President (since 2002) Chicago, IL 60606 and Assistant Secretary (since 1998), formerly Assistant Vice President of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. - ------------------------------------------------------------------------------------------------------------------------------------ Lorna C. Ferguson Vice President 1998 Managing Director (since 2004) formerly, Vice President of 145 10/24/45 Nuveen Investments, LLC; Managing Director (since 2004) 333 W. Wacker Drive formerly, Vice President (since 1998) of Nuveen Advisory Chicago, IL 60606 Corp. and Nuveen Institutional Advisory Corp. - ------------------------------------------------------------------------------------------------------------------------------------ William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen Investments, 145 3/2/64 LLC; Managing Director (since 2001), formerly Vice President 333 W. Wacker Drive of Nuveen Advisory Corp. and Nuveen Institutional Advisory Chicago, IL 60606 Corp. (since 1995); Managing Director of Nuveen Asset Management, Inc. (since 2001); Vice President of Nuveen Investment Advisers Inc. (since 2002); Chartered Financial Analyst. - ------------------------------------------------------------------------------------------------------------------------------------ Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 145 5/31/54 and Controller of Nuveen Investments, LLC and Vice President and Funds 333 W. Wacker Drive Controller (since 1998) of Nuveen Investments, Inc.; Chicago, IL 60606 Certified Public Accountant. 44 NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OFFICER - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS (CONTINUED): - ------------------------------------------------------------------------------------------------------------------------------------ David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 145 3/22/63 LLC, previously Assistant Vice President (since 1999); 333 W. Wacker Drive prior thereto, Associate of Nuveen Investments, LLC; Chicago, IL 60606 Certified Public Accountant. - ------------------------------------------------------------------------------------------------------------------------------------ Tina M. Lazar Vice President 2002 Vice President (since 1999), previously, Assistant Vice 145 8/27/61 President (since 1993) of Nuveen Investments, LLC. 333 W. Wacker Drive Chicago, IL 60606 - ------------------------------------------------------------------------------------------------------------------------------------ Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 145 7/27/51 and Assistant Counsel of Nuveen Investments, LLC; Vice President and 333 W. Wacker Drive Secretary Assistant Secretary of Nuveen Advisory Corp. and Nuveen Chicago, IL 60606 Institutional Advisory Corp.; Assistant Secretary of Nuveen Investments, Inc. and (since 1997) Nuveen Asset Management, Inc.; Vice President (since 2000), Assistant Secretary and Assistant General Counsel (since 1998) of Rittenhouse Asset Management, Inc.; Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); Assistant Secretary of NWQ Investment Management Company, LLC (since 2002). - ------------------------------------------------------------------------------------------------------------------------------------ Edward F. Neild, IV Vice President 1996 Managing Director (since 2002) of Nuveen Investments, LLC; 145 7/7/65 Managing Director (since 1997), formerly Vice President 333 W. Wacker Drive (since 1996) of Nuveen Advisory Corp. and Nuveen Institutional Chicago, IL 60606 Advisory Corp.; Managing Director of Nuveen Asset Management, Inc. (since 1999). Chartered Financial Analyst.
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the Investment Company Act of 1940, because he is an officer and board member of the Adviser. (2) Board members serve an indefinite term until his/her successor is elected. The year first elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex. (3) Officers serve one year terms through July of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex. 45 Reinvest Automatically EASILY AND CONVENIENTLY SIDEBAR TEXT: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN 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 the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. FLEXIBLE You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee. You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time. CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787. 46 Other Useful INFORMATION PROXY VOTING POLICIES AND PROCEDURES A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling Nuveen Investments at (800) 257-8787; and (ii) on the Commission's website at http://www.sec.gov. 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. BOARD OF TRUSTEES Robert P. Bremner Lawrence H. Brown Jack B. Evans William C. Hunter 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 Chapman and Cutler LLP Chicago, IL INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP Chicago, IL Each Fund intends to repurchase shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the fiscal year ended June 30, 2004. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 47 Nuveen Investments: SERVING Investors For GENERATIONS Photo of: 2 women looking at a photo album. Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles. WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS. Managing $100 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. FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS. 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. Learn more about Nuveen Funds at WWW.NUVEEN.COM/ETF o Share prices o Fund details o Daily financial news o Investor education o Interactive planning tools Logo: NUVEEN Investments EAN-A-0604D ITEM 2. CODE OF ETHICS. As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. The registrant has posted such code of ethics on its website at www.nuveen.com/etf. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's board of directors determined that the registrant had at least one "audit committee financial expert" (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit committee financial expert was William E. Bennett, who was "independent" for purposes of Item 3 of Form N-CSR. Although Mr. Bennett served as the audit committee financial expert for the majority of the reporting period, he unexpectedly resigned from the Board effective April 30, 2004. Since that time, the Audit Committee determined that Jack B. Evans, the Chairman of the Audit Committee, qualifies as an audit committee financial expert and recommended to the full Board that he be designated as such. On July 26, 2004, the full Board voted to so designate Mr. Evans. Accordingly for this reporting period, the registrant did not have a designated "audit committee financial expert" from April 30, 2004 to the end of the reporting period on June 30, 2004. Mr. Bennett was formerly Executive Vice President and Chief Credit Officer of First Chicago Corporation and its principal subsidiary, The First National Bank of Chicago. As part of his role as Chief Credit Officer, Mr. Bennett set policy as to accrual of assets/loans; designated performing/non-performing assets; set the level of reserves against the credit portfolo; and determined the carrying value of credit related assets and exposure. Among other things, Mr. Bennett was also responsible for the oversight of the internal analysis function including setting ground rules for the review and preparation of financial analysis and financial statements for use in making credit and risk decisions for clients. Mr. Bennett has significant experience reviewing, analyzing and evaluating financial statements of domestic and international companies in a variety of industries with complex accounting issues. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Nuveen Insured Florida Premium Income Municipal Fund The following tables show the amount of fees that Ernst & Young LLP, the Fund's auditor, billed to the Fund during the Fund's last two full fiscal years. For engagements with Ernst & Young LLP entered into on or after May 6, 2003, the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed. The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee). SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES FISCAL YEAR ENDED TO FUND BILLED TO FUND BILLED TO FUND BILLED TO FUND - ------------------------------------------------------------------------------------------------------------------------------------ June 30, 2004 $ 13,041 $ 0 $ 420 $ 2,500 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved N/A 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------ June 30, 2003 $ 11,506 $ 0 $ 362 $ 2,300 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved N/A 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------
The above "Tax Fees" were billed for professional services for tax advice, tax compliance and tax planning. SERVICES THAT THE FUND'S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS The following tables show the amount of fees billed by Ernst & Young LLP to Nuveen Advisory Corp. ("NAC" or the "Adviser"), and any entity controlling, controlled by or under common control with NAC ("Control Affiliate") that provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for engagements directly related to the Fund's operations and financial reporting, during the Fund's last two full fiscal years. The table also shows the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the Fund's audit is completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS - ------------------------------------------------------------------------------------------------------------------------------------ June 30, 2004 $ 0 $ 0 $ 0 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------ June 30, 2003 $ 0 $ 0 $ 0 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved N/A N/A N/A pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES The following table shows the amount of fees that Ernst & Young LLP billed during the Fund's last two full fiscal years for non-audit services. For engagements entered into on or after May 6, 2003, the Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund's operations and financial reporting (except for those subject to the de minimis exception described above). The Audit Committee requested and received information from Ernst & Young LLP about any non-audit services that Ernst & Young LLP rendered during the Fund's last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Ernst & Young LLP independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES BILLED TO ADVISER AND AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL - ------------------------------------------------------------------------------------------------------------------------------------ June 30, 2004 $ 2,920 $ 0 $ 0 $ 2,920 June 30, 2003 $ 2,662 $ 0 $ 0 $ 2,662
Audit Committee Pre-Approval Policies and Procedures. Generally, the audit committee must approve (i) all non-audit services to be performed for the Fund by the Fund's independent accountants and (ii) all audit and non-audit services to be performed by the Fund's independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the audit committee if they are expected to be for amounts greater than $10,000; (ii) reported to the audit committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the audit committee at the next audit committee meeting if they are expected to be for an amount under $5,000. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable at this time. ITEM 6. SCHEDULE OF INVESTMENTS. Not applicable at this time. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. In the rare event that a municipal issuer held by the Fund were to issue a proxy or that the Fund were to receive a proxy issued by a cash management security, the Adviser would either engage an independent third party to determine how the proxy should be voted or vote the proxy with the consent, or based on the instructions, of the Fund's Board of Directors or Trustees or its representative. In the case of a conflict of interest, the proxy would be submitted to the applicable Fund's Board to determine how the proxy should be voted. A member of the Adviser's legal department would oversee the administration of the voting, and ensure that records were maintained in accordance with Rule 204-2(c)(2) under the Investment Advisers Act of 1940 (17 CFR 275.204-2(c)(2)), reports were filed with the SEC on Form N-PX, and the results were provided to the Board of Directors or Trustees and made available to shareholders as required by applicable rules. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable to this registrant. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. In the event of a vacancy on the Board, the nominating and governance committee receives suggestions from various sources, including shareholders, as to suitable candidates. Suggestions should be sent in writing to Lorna Ferguson, Vice President for Board Relations, Nuveen Investments, 333 West Wacker Drive, Chicago, IL 60606. The nominating and governance committee sets appropriate standards and requirements for nominations for new directors and reserves the right to interview all candidates and to make the final selection of any new directors. ITEM 10. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's last fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 11. EXHIBITS. File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable because posted on registrant's website at www.nuveen.com/etf. (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT Attached hereto. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable at this time. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen Insured Florida Premium Income Municipal Fund ----------------------------------------------------------- By (Signature and Title)* /s/ Jessica R. Droeger ---------------------------------------------- Jessica R. Droeger Vice President and Secretary Date: September 9, 2004 ------------------------------------------------------------------- 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: September 9, 2004 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (Principal Financial Officer) Date: September 9, 2004 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 file002.txt CERTIFICATIONS CERTIFICATION I, Gifford R. Zimmerman, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen Insured Florida Premium Income Municipal Fund; 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; 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 officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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 and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: September 9, 2004 /s/ Gifford R. Zimmerman ------------------------- -------------------------------- Chief Administrative Officer (Principal Executive Officer) CERTIFICATION I, Stephen D. Foy, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen Insured Florida Premium Income Municipal Fund; 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; 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 officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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 and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: September 9, 2004 /s/ Stephen D. Foy ------------------------- -------------------------------- Vice President and Controller (Principal Financial Officer) EX-99.906CERT 3 file003.txt CERTIFICATIONS Certification Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002; provided by the Chief Executive Officer and Chief Financial Officer, based on each such officer's knowledge and belief. The undersigned officers of Nuveen Insured Florida Premium Income Municipal Fund (the "Fund"), certify that, to the best of each such officer's knowledge and belief: 1. The Form N-CSR of the Fund for the period ended June 30, 2004 (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. Date: September 9, 2004 ----------------------- /s/ Gifford R. Zimmerman --------------------- Chief Administrative Officer (Chief Executive Officer) /s/ Stephen D. Foy --------------------- Vice President, Controller (Chief Financial Officer) -----END PRIVACY-ENHANCED MESSAGE-----