Washington, D.C. 20549
Nuveen Insured Municipal Opportunity Fund, Inc.
Kevin J. McCarthy
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.
NUVEEN INVESTMENTS ANNOUNCES STRATEGIC COMBINATION WITH FAF ADVISORS
On July 29, 2010, Nuveen Investments announced that U.S. Bancorp will receive a 9.5% stake in Nuveen Investments and cash consideration in exchange for the long-term asset business of U.S. Bancorp’s FAF Advisors. Nuveen Investments is the parent of Nuveen Asset Management (NAM), the investment adviser for the Funds included in this report.
FAF Advisors, which currently manages about $25 billion of long-term assets and serves as the advisor of the First American Funds, will be combined with NAM, which currently manages about $75 billion in municipal fixed income assets. Upon completion of the transaction, Nuveen Investments, which currently manages about $160 billion of assets across several high-quality affiliates, will manage a combined total of about $185 billion in institutional and retail assets.
This combination will not affect the investment objectives, strategies or policies of the Funds in this report. Over time, Nuveen Investments expects that the combination will provide even more ways to meet the needs of investors who work with financial advisors and consultants by enhancing the multi-boutique model of Nuveen Investments, which also includes highly respected investment teams at Hyde Park, NWQ Investment Management, Santa Barbara Asset Management, Symphony Asset Management, Tradewinds Global Investors and Winslow Capital.
The transaction is expected to close late in 2010, subject to customary conditions.
Chairman’s
Letter to Shareholders
Dear Shareholder,
Recent months have revealed the fragility and disparity of the global economic recovery. In the U.S., the rate of economic growth has slowed as various stimulus programs wind down, exposing weakness in the underlying economy. In contrast, many emerging market countries are experiencing a return to comparatively high rates of growth. Confidence in global financial markets has been undermined by concerns about high sovereign debt levels in Europe and the U.S. Until these countries can begin credible programs to reduce their budgetary deficits, market unease and hesitation will remain. On a more encouraging note, while the global recovery is expanding existing trade imbalances, policy makers in the leading economies are making a sustained effort to create a global framework through which various countries can take complimentary ac tions that should reduce those imbalances over time.
The U.S. economy is subject to unusually high levels of uncertainty as it struggles to recover from a devastating financial crisis. Unemployment remains stubbornly high, due to what appears to be both cyclical and structural forces. Federal Reserve policy makers are implementing another round of quantitative easing, a novel approach to provide support to the economy. However, the high levels of debt owed both by U.S. consumers and the U.S. government limit the Fed’s ability to engineer a stronger economic recovery.
The U.S. financial markets reflect the crosscurrents now impacting the U.S. economy. Today’s historically low interest rates reflect the Fed’s intervention in the financial markets and the demand for U.S. government debt by U.S. and overseas investors looking for a safe haven for investment. The continued corporate earnings recovery and recent electoral results are giving a boost to equity markets. Encouragingly, financial institutions are rebuilding their balance sheets and the financial reform legislation enacted last summer has the potential to address many of the most significant contributors to the financial crisis, although the details still have to be worked out.
In this difficult environment your Nuveen investment team continues to seek sustainable investment opportunities and, at the same time, remains alert for potential risks that may result from a recovery still facing many headwinds. As your representative, the Nuveen Fund Board monitors the activities of each investment team to assure that all maintain their investment disciplines. As always, I encourage you to contact your financial consultant if you have any questions about your investment in a Nuveen Fund.
On behalf of the other members of your Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
Robert P. Bremner
Chairman of the Board
December 22, 2010
Nuveen Investments 1
Portfolio Manager’s Comments
Nuveen Insured Quality Municipal Fund, Inc. (NQI)
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO)
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF)
Nuveen Insured Premium Income Municipal Fund 2 (NPX)
Nuveen Insured Dividend Advantage Municipal Fund (NVG)
Nuveen Insured Tax-Free Advantage Municipal Fund (NEA)
Portfolio manager Paul Brennan discusses U.S. economic and municipal market conditions, key investment strategies and the twelve-month performance of these six national insured Funds. With 20 years of investment experience, including 12 years at Nuveen, Paul assumed portfolio management responsibility for NQI, NIO, NIF, NPX, NVG and NEA in 2006.
What factors affected the U.S. economy and municipal market during the twelve-month reporting period ended October 31, 2010?
During this reporting period, the U.S. economy remained under considerable stress, and both the Federal Reserve (Fed) and the federal government continued their efforts to improve the overall economic environment. For its part, the Fed held the benchmark fed funds rate in a target range of zero to 0.25% since cutting it to this record low level in December 2008. At its November 2010 meeting (shortly after the end of this reporting period), the central bank renewed its commitment to keeping the fed funds rate at “exceptionally low levels” for an “extended period.” The Fed also announced a second round of quantitative easing, in which it plans to purchase $600 billion in U.S. Treasury bonds by June 30, 2011. The goal of this plan is to lower long-term interest rates and thereby stimulate economic activity and create jobs. The federal government continued to focus on implementing the economic stimulus package passed in early 2009 and aimed at providing job creation, tax relief, fiscal assistance to state and local governments and expansion of unemployment benefits and other federal social welfare programs.
These and other measures produced some signs of economic improvement. In the third quarter of 2010, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 2.5%, marking the first time the economy had strung together five consecutive quarters of growth since 2007-2008. Inflation remained relatively tame, as the Consumer Price Index (CPI) rose just 1.2% year-over-year as of October 2010. The core CPI (which excludes food and energy) rose 0.6% over this period, the smallest twelve-month increase in the 53-year history of this index. Housing prices also continued to recover from their April 2009 lows, although growth rates moderated from previous periods. For the twelve months ended September 2010 (the most recent data available at the time this report was produced), the average home p rice in the Standard &
Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio manager as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
Any reference to credit ratings for portfolio holdings denotes the highest rating assigned by a Nationally Recognized Statistical Rating Organization (NRSRO) such as Standard & Poor’s, Moody’s or Fitch. AAA, AA, A, and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below investment grade. Holdings and ratings may change over time.
2 Nuveen Investments
Poor’s/Case-Shiller Index rose 0.6%. Unemployment remained persistently high, with the jobless rate hovering at or above 9.5% over the past 15 months. As of October 31, 2010, national unemployment stood at 9.6% for the third consecutive month, down from its 26-year high of 10.1% in October 2009.
Municipal bond prices generally rose during this period, as the combination of strong demand and tight supply of new tax-exempt issuance created favorable market conditions. One reason for the decrease in new tax-exempt supply was the heavy issuance of taxable municipal debt under the Build America Bond program. Build America Bonds, which were created as part of the February 2009 economic stimulus package, currently offer municipal issuers a federal subsidy equal to 35% of a bond’s interest payments, providing issuers with an alternative to traditional tax-exempt debt that often proves to be lower in cost. For the twelve months ended October 31, 2010, taxable Build America Bonds issuance totaled $100.3 billion, accounting for 24% of new bonds issued in the municipal market.
Over the twelve months ended October 31, 2010, municipal bond issuance nationwide—both tax-exempt and taxable—totaled $418.0 billion, an increase of 9% compared with the twelve-month period ended October 31, 2009. However, if taxable Build America Bond issuance were removed from the equation, the supply of tax-exempt bonds alone actually fell 15%. Since interest payments from Build America Bonds represent taxable income, we do not view these bonds as appropriate investment opportunities for the tax-exempt Nuveen municipal closed-end funds.
What key strategies were used to manage these Funds?
As previously mentioned, the supply of tax-exempt municipal bonds declined nationally during this period, due largely to the continued issuance of taxable municipal bonds under the Build America Bond program. In this environment of constrained issuance of tax-exempt municipal bonds, we continued to take a bottom-up approach to discovering undervalued sectors and individual credits with the potential to perform well over the long term. During this period, we found value in several areas of the market, including health care, tax-supported sectors and other essential services such as roads and airports. In general, the bonds we purchased had maturities of at least 20 years.
Overall, our focus remained on quality investments, although the continuing decline in insured issuance made finding appropriate insured bonds more of a challenge. During the first ten months of 2010, new insured paper accounted for less than 7% of national issuance, compared with 10% during the first ten months of 2009 and relatively recent historical levels of approximately 50%. The investment policy changes that were implemented in the Nuveen insured funds during the first half of 2010 mean that all of these Funds now can invest up to 20% of their net assets in uninsured investment-grade credits. (At least 80% of the Funds’ net assets must be invested in municipal securities that, at the time of purchase, are covered by insurance guaranteeing the timely payment of principal and interest thereon.) Along with providing g reater portfolio management flexibility, these changes enable us to better diversify the Funds and keep them fully invested during times when the supply of insured bonds is limited. During this period, we added both insured and high-quality uninsured (AAA and AA rated) credits to the Funds’ portfolios.
Nuveen Investments 3
Some of this investment activity resulted from opportunities created by the provisions of the Build America Bond program. For example, tax-exempt supply was more plentiful in the health care sector because, as 501(c)(3) (nonprofit) organizations, hospitals generally do not qualify for the Build America Bond program and must continue to issue bonds in the tax-exempt municipal market. Bonds with proceeds earmarked for refundings, working capital and private activities also are not covered by the Build America Bond program, and this resulted in attractive opportunities in various other sectors of the market.
The impact of the Build America Bond program also was evident in the area of longer-term issuance, as municipal issuers sought to take full advantage of the attractive financing terms offered by these bonds. Approximately 70% of Build America Bonds were issued with maturities of at least 30 years. Even though this significantly reduced the availability of tax-exempt credits with longer maturities and made locating appropriate longer bonds more challenging, we continued to find good opportunities to purchase attractive longer-term bonds for these Funds.
Cash for new purchases during this period was generated primarily by the proceeds from bond calls and maturing bonds, which we worked to redeploy to keep the Funds fully invested. On the whole, active selling was minimal, as the bonds in our portfolios generally offered higher yields than those available in the current marketplace.
As of October 31, 2010, all six of these Funds continued to use inverse floating rate securities.1 We employ inverse floaters as a form of leverage for a variety of reasons, including duration management, income enhancement and total return enhancement.
How did the Funds perform?
Individual results for these Funds, as well as relevant index and peer group information, are presented in the accompanying table.
Average Annual Total Returns on Common Share Net Asset Value For periods ended 10/31/10
| Fund | | 1-Year | | 5-Year | | 10-Year |
| NQI | | 11.30% | | 4.23% | | 5.97% |
| NIO | | 11.08% | | 4.83% | | 6.17% |
| NIF | | 10.74% | | 4.95% | | 6.14% |
| NPX | | 10.39% | | 4.58% | | 6.00% |
| NVG | | 8.89% | | 5.36% | | N/A |
| NEA | | 9.76% | | 5.88% | | N/A |
| | | | | | | |
Standard & Poor’s (S&P) National Insured Municipal Bond Index2 | | 8.05% | | 4.96% | | 5.70% |
| | | | | | | |
Lipper Insured Municipal Debt Funds Average3 | | 11.49% | | 4.93% | | 6.20% |
For the twelve months ended October 31, 2010, the total returns on common share net asset value (NAV) for all six of these Nuveen Funds exceeded the return for the Standard & Poor’s (S&P) National Insured Municipal Bond Index. For this same period, all of the Funds lagged the average return for the Lipper Insured Municipal Debt Funds Average.
| | Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. |
| | For additional information, see the individual Performance Overview for your Fund in this report. |
| 1 | An inverse floating rate security, also known as an inverse floater, is a financial instrument designed to pay long-term interest at a rate that varies inversely with a short-term interest rate index. For the Nuveen Funds, the index typically used is the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Index, (previously referred to as the Bond Market Association Index or BMA). Inverse floaters, including those inverse floating rate securities in which the Funds invested during this reporting period, are further defined within the Notes to Financial Statements and Glossary of Terms Used in this Report sections of this report. |
| 2 | The Standard & Poor’s (S&P) National Insured Municipal Bond Index is an unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, insured U.S. municipal bond market. This index does not reflect any initial or ongoing expenses and is not available for direct investment. |
| 3 | The Lipper Insured Municipal Debt Funds Average is calculated using the returns of all insured closed-end funds in this category for each period as follows: 1-year, 23 funds; 5-year, 21 funds; and 10-year, 16 funds. Lipper returns account for the effects of management fees and assume reinvestment of dividends, but do not reflect any applicable sales charges. The Lipper average is not available for direct investment. |
4 Nuveen Investments
Key management factors that influenced the Funds’ returns during this period included duration and yield curve positioning, credit exposure, and sector allocation. In addition, the use of structural leverage was an important positive factor affecting the Funds’ performances over this period. The impact of structural leverage is discussed in more detail on page six.
During this period, municipal bonds with longer maturities generally outperformed those with shorter maturities, with credits at the longest end of the municipal yield curve posting the strongest returns. The outperformance of longer term bonds was due in part to the decline in interest rates, particularly in the intermediate and longer segments of the curve. The scarcity of tax-exempt bonds with longer maturities also drove up the prices of these bonds. Overall, the impact of duration and yield curve positioning ranged from positive to neutral in these Funds, with Funds having the longest durations benefiting the most from the interest rate environment of the past twelve months. During this period, NQI cycled through a number of bond calls, and we reinvested call proceeds in bonds with longer maturities, extending NQI’s duration and providing this Fund with more exposure to the outperforming longer end of the curve. In contrast, NVG and NEA had the shortest durations among these six Funds, which detracted from their performance compared with the other four Funds.
Credit exposure also played a role in performance. The demand for municipal bonds increased during this period driven by a variety of factors, including concerns about potential tax increases, the need to rebalance portfolio allocations and a growing appetite for higher yields and additional risk. At the same time, the supply of new tax-exempt municipal paper declined, due largely to Build America Bond issuance. As investors bid up municipal bond prices, bonds rated BBB or below and non-rated bonds generally outperformed those rated AAA. As of October 31, 2010, all of these Funds had some exposure to bonds rated BBB and non-rated bonds, which generally added to their performance.
Holdings that generally made positive contributions to the Funds’ returns during this period included health care bonds. Revenue bonds as a whole performed well, with transportation, housing, and special tax credits among the other sectors that outperformed the general municipal market. Zero coupon bonds also were among the strongest performers.
In contrast, pre-refunded bonds, which are often backed by U.S. Treasury securities continued to trail the general municipal market during this period. While these securities continued to provide attractive tax-free income, the underperformance of these bonds can be attributed primarily to the muted investment performance associated with their shorter effective maturities and higher credit quality. Although allocations of pre-refunded bonds fell in all of these Funds (with the exception of NEA) over the past twelve months due to calls, the Funds continued to hold a substantial amount of these bonds. While these holdings detracted from the Funds’ performance, they continued to provide attractive income. As of October 31, 2010, NVG and NEA had the heaviest weightings of pre-refunded bonds, while NQI held the fewest pre-refu nded bonds. Among the revenue sectors, resource recovery trailed the overall municipal market by the widest margin, and water and sewer bonds also turned in relatively weak performance. In general, General
Nuveen Investments 5
Obligation (GO) and other tax-supported bonds struggled to keep pace with the municipal market return during the past twelve months.
IMPACT OF THE FUNDS’ LEVERAGE STRATEGIES ON PERFORMANCE
One important factor impacting the returns of most of these Funds relative to the comparative indexes was the Funds’ use of financial leverage. The Funds use leverage because their managers believe that, over time, leveraging provides opportunities for additional income and total return for common shareholders. However, use of leverage also can expose common shareholders to additional volatility. For example, as the prices of securities held by a Fund decline, the negative impact of these valuation changes on common share net asset value and common shareholder total return is magnified by the use of leverage. Conversely, leverage may enhance common share returns during periods when the prices of securities held by a Fund generally are rising. Leverage made a positive contribution to the performance of these Funds over thi s reporting period.
RECENT DEVELOPMENTS REGARDING THE FUNDS’ LEVERAGED CAPITAL STRUCTURE
Shortly after their inceptions, each of the Funds issued auction rate preferred shares (ARPS) to create financial leverage. As noted in past shareholder reports, the ARPS issued by many closed-end funds, including these Funds, have been hampered by a lack of liquidity since February 2008. Since that time, more ARPS have been submitted for sale in each of their regularly scheduled auctions than there have been offers to buy. In fact, offers to buy have been almost completely non-existent since late February 2008. This means that these auctions have “failed to clear,” and that many, or all, of the ARPS shareholders who wanted to sell their shares in these auctions were unable to do so. This lack of liquidity in ARPS did not lower the credit quality of these shares, and ARPS shareholders unable to sell their shares con tinued to receive distributions at the “maximum rate” applicable to failed auctions, as calculated in accordance with the pre-established terms of the ARPS. In the recent market, with short-term rates at multi-generational lows, those maximum rates also have been low.
One continuing implication for common shareholders from the auction failures is that each Fund’s cost of leverage likely has been incrementally higher at times than it otherwise might have been had the auctions continued to be successful. As a result, each Fund’s common share earnings likely have been incrementally lower at times than they otherwise might have been.
As noted in past shareholder reports, the Nuveen funds’ Board of Directors/Trustees authorized several methods that can be used separately or in combination to refinance a portion of the Nuveen funds’ outstanding ARPS. Some funds have utilized tender option bonds (TOBs), also known as inverse floating rate securities, for leverage purposes. The amount of TOBs that a fund may use varies according to the composition of each fund’s portfolio. Some funds have a greater ability to use TOBs than others. Some funds have issued Variable Rate Demand Preferred (VRDP) Shares, a floating rate form of preferred stock. Some funds have issued MuniFund Term Preferred (MTP) Shares, a fixed rate form of preferred stock with a mandatory redemption period of five years.
6 Nuveen Investments
While all these efforts have reduced the total amount of outstanding ARPS issued by the Nuveen funds, the funds cannot provide any assurance on when the remaining outstanding ARPS might be redeemed.
During 2010, and as of the time this report was prepared, 36 Nuveen leveraged closed-end funds (including NQI, NIO, NIF, NVG and NEA), received a demand letter from a law firm on behalf of purported holders of common shares of each such fund, alleging that Nuveen and the funds’ officers and Board of Directors/ Trustees breached their fiduciary duties related to the redemption at par of the funds’ ARPS. In response, the Board established an ad hoc Demand Committee consisting of certain of its disinterested and independent Board members to investigate the claims. The Demand Committee retained independent counsel to assist it in conducting an extensive investigation. Based upon its investigation, the Demand Committee found that it was not in the best interests of each fund or its shareholders to take the actions sugges ted in the demand letters, and recommended that the full Board reject the demands made in the demand letters. After reviewing the findings and recommendation of the Demand Committee, the full Board of each fund unanimously adopted the Demand Committee’s recommendation.
Subsequently, 26 of the funds that received demand letters (including NQI, NIF, NVG and NEA) were named as nominal defendants in a putative shareholder derivative action complaint captioned Safier and Smith v. Nuveen Asset Management, et al. that was filed in the Circuit Court of Cook County, Illinois, Chancery Division (the “Cook County Chancery Court”) on July 27, 2010. Three additional funds were named as nominal defendants in a similar complaint captioned Curbow v. Nuveen Asset Management, et al. filed in the Cook County Chancery Court on August 12, 2010, and three additional funds were named as nominal defendants in a similar complaint captioned Beid ler v. Nuveen Asset Management, et al. filed in the Cook County Chancery Court on September 21, 2010 (collectively, the “Complaints”). The Complaints, filed on behalf of purported holders of each fund’s common shares, also name Nuveen Asset Management as a defendant, together with current and former Officers and interested Director/Trustees of each of the funds (together with the nominal defendants, collectively, the “Defendants”). The Complaints contain the same basic allegations contained in the demand letters. The suits seek a declaration that the Defendants have breached their fiduciary duties, an order directing the Defendants not to redeem any ARPS at their liquidation value using fund assets, indeterminate monetary damages in favor of the funds and an award of plaintiffs’ costs and disbursements in pursuing the action. Nuveen Asset Management believes that the Complaints are without merit, and intends to defend vigorously against these charges.
Nuveen Investments 7
As of October 31, 2010, the amounts of ARPS redeemed by the Funds are as shown in the accompanying table.
| Fund | | Auction Rate Preferred Shares Redeemed | | % of Original Auction Rate Preferred Share |
| NQI | | $ | 78,800,000 | | | 24.8 | % |
| NIO | | $ | 126,175,000 | | | 16.0 | % |
| NIF | | $ | 30,875,000 | | | 19.2 | % |
| NPX | | $ | 268,900,000 | | | 100.0 | % |
| NVG | | $ | 141,050,000 | | | 60.5 | % |
| NEA | | $ | 105,625,000 | | | 61.1 | % |
| MTP | | | | | | | |
During the current reporting period, NEA completed the issuance of $83.0 million of 2.85% Series 2015 MTP. The net proceeds from this offering was used to refinance a portion of the Fund’s outstanding ARPS at par. The newly-issued MTP shares trade on the New York Stock Exchange (NYSE) under the symbols “NEA Pr C.” MTP is a fixed-rate form of preferred stock with a mandatory redemption period, in this case, of five years. By issuing MTP, the Fund seeks to take advantage of the current historically low interest rate environment to lock in an attractive federally tax-exempt cost of leverage for a period as long as the term of the MTP. The Fund’s managers believe that issuing MTP may help the Fund mitigate the risk of a significant increase in its cost of leverage should short term interest rates rise sharpl y in the coming years.
As noted in past shareholder reports, and as of October 31, 2010, NVG had $108.0 million MTP issued and outstanding.
VRDP
As noted in past shareholder reports, and as of October 31, 2010, NPX had $219.0 million VRDP issued and outstanding.
Subsequent to the reporting period, NIF issued $130.9 million of VRDP to redeem at par the Fund’s outstanding ARPS. As noted previously, VRDP is a newly-developed instrument that essentially replaces all or a portion of the ARPS used as leverage and potentially could be used to refinance all or a portion of the ARPS of other Funds. VRDP shares include a liquidity feature that allows holders of VRDP to have their shares purchased by a liquidity provider in the event that sell orders have not been matched with purchase orders and successfully settled in a remarketing. VRDP dividends will be set weekly at a rate established by the remarketing agent. VRDPs offer interest rates that are reset frequently on a regular schedule and generally reflect current short-term municipal market interest rates. VRDP is offered only to quali fied institutional buyers, defined pursuant to Rule 144A under the Securities Act of 1933. Immediately following its VRDP issuance, NIF noticed for redemption at par its remaining $130.125 million APRS using the VRDP proceeds.
Refer to Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies and Footnote 4 – Fund Shares for further details on MTP and VRDP Shares.
8 Nuveen Investments
As of October 31, 2010, 83 out of the 84 Nuveen closed-end municipal funds that had issued ARPS have redeemed at par all or a portion of these shares. These redemptions bring the total amount of Nuveen’s municipal closed-end funds’ ARPS redemptions to approximately $5.7 billion of the approximately $11.0 billion outstanding.
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at: http://www.nuveen.com/arps.
RECENT CHANGES TO INVESTMENT POLICIES OF NUVEEN INSURED FUNDS
As a result of the “credit crunch” that began in 2007 and that led to the financial crisis that peaked in late 2008, the financial strength ratings assigned to most municipal bond insurers have been downgraded by the primary ratings agencies. These ratings downgrades generally have reduced, and any additional ratings downgrades may further reduce, the effective rating of many of the bonds insured by those bond insurers, including bonds held by the Funds. This in turn has sharply reduced, and in some cases may have eliminated, the value provided by such insurance. Nonetheless, the Funds’ holdings continue to be well diversified and on the whole, the underlying credit quality of its holdings are of medium to high quality. It is also important to note that municipal bonds historically have had a very low rate of default.
On May 3, 2010, the Nuveen funds’ Board of Directors/Trustees approved changes to the investment policies of all of the Nuveen insured municipal bond closed-end funds. The Board took this action in response to the continuing challenges faced by municipal bond insurers. The changes to each Fund’s investment policies are intended to increase the Fund’s investment flexibility in pursuing its investment objective, while retaining the insured nature of its portfolio.
The changes, effective immediately, provide that under normal circumstances, the Funds invest at least 80% of their managed assets (as defined in Footnote 7 – Management Fees and Other Transactions with Affiliates) in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. In addition, the municipal securities in which each Fund invests will be rated investment grade at the time of purchase (based on the higher of the rating of the insurer, if any, or the underlying security) by at least one independent rating agency, or are unrated but judged to be of similar credit quality by Nuveen Asset Management, or are backed by an escrow or trust account containing sufficient U.S. government or U.S. government agency securities or U.S. Treasury-issued State and Local Government Series securities to ensure timely payment of principal and interest thereon. Inverse floating rate securities whose underlying bonds are covered by insurance are included for purposes of the 80%.
Nuveen Investments 9
Common Share Dividend and
Share Price Information
During the twelve-month reporting period ended October 31, 2010, NIO had three increases in its monthly dividend, NIF had two monthly dividend increases, and NQI, NPX and NEA each had one monthly dividend increase. The monthly dividend of NVG remained stable throughout the reporting period.
Due to normal portfolio activity, common shareholders of NVG received a long-term capital gains distribution of $0.0409 per share at the end of December 2009.
All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund’s past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund’s NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund’s NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of October 31, 2010, all of the Funds in this report had positive UNI I balances for both tax and financial reporting purposes.
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
As of October 31, 2010, and since the inception of the Funds’ repurchase program, NIO, NVG and NEA have cumulatively repurchased and retired their common shares as shown in the accompanying table. Since the inception of the Funds’ repurchase program, NQI, NIF, and NPX have not repurchased any of their outstanding common shares.
| | | Common Shares | | | |
| Fund | | Repurchased and Retired | | | % of Outstanding Common Shares |
| NIO | | | 2,900 | | | | 0.0 | % |
| NVG | | | 10,400 | | | | 0.0 | % |
| NEA | | | 19,300 | | | | 0.1 | % |
During the twelve-month reporting period, NIO repurchased and retired common shares at a weighted average price and a weighted average discount per common share as shown in the accompanying table. NVG and NEA did not repurchase and retire any of their outstanding common shares during the twelve-month reporting period.
| | | | | | Weighted Average | | | Weighted Average |
| | | Common Shares | | | Price Per Share | | | Discount Per Share |
| Fund | | Repurchased and Retired | | | Repurchased and Retired | | | Repurchased and Retired |
| NIO | | | 2,900 | | | $ | 12.93 | | | | 8.57 | % |
10 Nuveen Investments
As of October 31, 2010, the Funds’ common share prices were trading at (+) premiums and (-) discounts to their common share NAVs as shown in the accompanying table.
| | | 10/31/10 | | 12-Month Average |
| Fund | | (+) Premium/(-)Discount | | (+) Premium/(-)Discount |
| NQI | | +0.98% | | +0.93% |
| NIO | | -0.60% | | -3.83% |
| NIF | | +3.26% | | -0.58% |
| NPX | | -0.96% | | -3.86% |
| NVG | | -2.63% | | -3.59% |
| NEA | | -0.20% | | -1.05% |
Nuveen Investments 11
| NQI | | Nuveen Insured |
| Performance | | Quality Municipal |
| OVERVIEW | | Fund, Inc. |
| | | as of October 31, 2010 |
| Fund Snapshot | | | | |
| Common Share Price | | $ | 14.40 | |
| Common Share Net Asset Value (NAV) | | $ | 14.26 | |
| Premium/(Discount) to NAV | | | 0.98 | % |
| Market Yield | | | 5.92 | % |
Taxable-Equivalent Yield2 | | | 8.22 | % |
| Net Assets Applicable to Common Shares ($000) | | $ | 547,598 | |
| Average Effective Maturity on Securities (Years) | | | 16.66 | |
| Leverage-Adjusted Duration | | | 8.20 | |
Average Annual Total Return (Inception 12/19/90) | | | | | | | |
| | | On Share Price | | On NAV | |
| 1-Year | | | 15.03 | % | | 11.30 | % |
| 5-Year | | | 4.65 | % | | 4.23 | % |
| 10-Year | | | 6.82 | % | | 5.97 | % |
States5 (as a % of total investments) | | | | |
| California | | | 17.9 | % |
| Texas | | | 11.6 | % |
| Washington | | | 8.3 | % |
| Illinois | | | 8.1 | % |
| New York | | | 6.4 | % |
| Florida | | | 6.4 | % |
| Pennsylvania | | | 4.0 | % |
| Kentucky | | | 3.9 | % |
| Arizona | | | 3.6 | % |
| Massachusetts | | | 2.8 | % |
| New Jersey | | | 2.5 | % |
| Louisiana | | | 2.4 | % |
| Ohio | | | 2.4 | % |
| Other | | | 19.7 | % |
Portfolio Composition5 (as a % of total investments) | | | | |
| Tax Obligation/Limited | | | 23.7 | % |
| Transportation | | | 19.7 | % |
| U.S. Guaranteed | | | 14.0 | % |
| Tax Obligation/General | | | 13.9 | % |
| Health Care | | | 8.2 | % |
| Water and Sewer | | | 6.8 | % |
| Utilities | | | 5.9 | % |
| Other | | | 7.8 | % |
Insurers5 (as a % of total Insured investments) | | | | |
NPFG3 | | | 30.7 | % |
| AGM | | | 27.6 | % |
| AMBAC | | | 20.0 | % |
| FGIC | | | 17.2 | % |
| Other | | | 4.5 | % |
| | Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. |
| 1 | The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. At the end of the reporting period, 91% of the Fund’s total investments are invested in Insured securities. |
| 2 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 3 | MBIA’s public finance subsidiary. |
| 4 | Ratings shown are the highest of Standard & Poor’s Group, Moody’s Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| 5 | Holdings are subject to change. |
12 Nuveen Investments
| NIO | | Nuveen Insured |
| Performance | | Municipal Opportunity |
| OVERVIEW | | Fund, Inc. |
| | | as of October 31, 2010 |
| Fund Snapshot | | | | |
| Common Share Price | | $ | 14.83 | |
| Common Share Net Asset Value (NAV) | | $ | 14.92 | |
| Premium/(Discount) to NAV | | | -0.60 | % |
| Market Yield | | | 5.83 | % |
Taxable-Equivalent Yield2 | | | 8.10 | % |
| Net Assets Applicable to Common Shares ($000) | | $ | 1,426,419 | |
| Average Effective Maturity on Securities (Years) | | | 15.84 | |
| Leverage-Adjusted Duration | | | 8.27 | |
Average Annual Total Return (Inception 9/19/91) | | | | | | | |
| | | On Share Price | | On NAV | |
| 1-Year | | | 21.20 | % | | 11.08 | % |
| 5-Year | | | 6.39 | % | | 4.83 | % |
| 10-Year | | | 7.62 | % | | 6.17 | % |
States5 (as a % of total investments) | | | | |
| California | | | 16.3 | % |
| Florida | | | 16.1 | % |
| Texas | | | 5.8 | % |
| New York | | | 4.5 | % |
| Nevada | | | 4.2 | % |
| Illinois | | | 3.8 | % |
| South Carolina | | | 3.5 | % |
| Massachusetts | | | 3.4 | % |
| Pennsylvania | | | 3.2 | % |
| Alabama | | | 3.2 | % |
| Louisiana | | | 2.9 | % |
| Washington | | | 2.8 | % |
| Indiana | | | 2.8 | % |
| New Jersey | | | 2.6 | % |
| Ohio | | | 2.5 | % |
| Colorado | | | 2.2 | % |
| Kentucky | | | 1.9 | % |
| Other | | | 18.3 | % |
Portfolio Composition5 (as a % of total investments) | | | | |
| Tax Obligation/Limited | | | 25.8 | % |
| U.S. Guaranteed | | | 18.0 | % |
| Transportation | | | 15.0 | % |
| Tax Obligation/General | | | 11.4 | % |
| Water and Sewer | | | 11.2 | % |
| Utilities | | | 8.1 | % |
| Other | | | 10.5 | % |
Insurers5 (as a % of total Insured investments) | | | | |
NPFG3 | | | 29.1 | % |
| FGIC | | | 23.3 | % |
| AGM | | | 20.5 | % |
| AMBAC | | | 17.9 | % |
| Other | | | 9.2 | % |
| | Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. |
| 1 | The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. At the end of the reporting period, 94% of the Fund’s total investments are invested in Insured securities. |
| 2 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 3 | MBIA’s public finance subsidiary. |
| 4 | Ratings shown are the highest of Standard & Poor’s Group, Moody’s Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| 5 | Holdings are subject to change. |
Nuveen Investments 13
| NIF | | Nuveen Premier |
| Performance | | Insured Municipal |
| OVERVIEW | | Income Fund, Inc. |
| | | as of October 31, 2010 |
| Fund Snapshot | | | | |
| Common Share Price | | $ | 15.50 | |
| Common Share Net Asset Value (NAV) | | $ | 15.01 | |
| Premium/(Discount) to NAV | | | 3.26 | % |
| Market Yield | | | 5.73 | % |
Taxable-Equivalent Yield2 | | | 7.96 | % |
| Net Assets Applicable to Common Shares ($000) | | $ | 292,018 | |
| Average Effective Maturity on Securities (Years) | | | 14.18 | |
| Leverage-Adjusted Duration | | | 8.47 | |
Average Annual Total Return (Inception 12/19/91) | | | | | | | |
| | | On Share Price | | On NAV | |
| 1-Year | | | 25.60 | % | | 10.74 | % |
| 5-Year | | | 7.29 | % | | 4.95 | % |
| 10-Year | | | 7.59 | % | | 6.14 | % |
States5 (as a % of total investments) | | | | |
| California | | | 17.2 | % |
| Washington | | | 11.4 | % |
| Illinois | | | 8.9 | % |
| Texas | | | 8.5 | % |
| Colorado | | | 5.1 | % |
| Pennsylvania | | | 4.6 | % |
| New York | | | 4.5 | % |
| Nevada | | | 3.9 | % |
| Florida | | | 3.4 | % |
| Massachusetts | | | 3.0 | % |
| Indiana | | | 2.8 | % |
| Oregon | | | 2.8 | % |
| Arizona | | | 2.6 | % |
| North Carolina | | | 2.0 | % |
| Other | | | 19.3 | % |
Portfolio Composition5 (as a % of total investments) | | | | |
| U.S. Guaranteed | | | 23.6 | % |
| Transportation | | | 18.6 | % |
| Tax Obligation/Limited | | | 17.3 | % |
| Tax Obligation/General | | | 14.5 | % |
| Water and Sewer | | | 8.4 | % |
| Utilities | | | 6.4 | % |
| Health Care | | | 5.1 | % |
| Other | | | 6.1 | % |
Insurers5 (as a % of total Insured investments) | | | | |
NPFG3 | | | 33.7 | % |
| AGM | | | 25.2 | % |
| FGIC | | | 23.8 | % |
| AMBAC | | | 13.9 | % |
| Other | | | 3.4 | % |
| | Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. |
| 1 | The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. At the end of the reporting period, 87% of the Fund’s total investments are invested in Insured securities. |
| 2 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 3 | MBIA’s public finance subsidiary. |
| 4 | Ratings shown are the highest of Standard & Poor’s Group, Moody’s Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| 5 | Holdings are subject to change. |
14 Nuveen Investments
| NPX | | Nuveen Insured |
| Performance | | Premium Income |
| OVERVIEW | | Municipal Fund 2 |
| | | as of October 31, 2010 |
| Fund Snapshot | | | | |
| Common Share Price | | $ | 13.40 | |
| Common Share Net Asset Value (NAV) | | $ | 13.53 | |
| Premium/(Discount) to NAV | | | -0.96 | % |
| Market Yield | | | 5.55 | % |
Taxable-Equivalent Yield2 | | | 7.71 | % |
| Net Assets Applicable to Common Shares ($000) | | $ | 505,332 | |
| Average Effective Maturity on Securities (Years) | | | 15.91 | |
| Leverage-Adjusted Duration | | | 8.18 | |
Average Annual Total Return (Inception 7/22/93) | | | | | | | |
| | | On Share Price | | On NAV | |
| 1-Year | | | 19.70 | % | | 10.39 | % |
| 5-Year | | | 6.56 | % | | 4.58 | % |
| 10-Year | | | 7.79 | % | | 6.00 | % |
States5 (as a % of total investments) | | | | |
| California | | | 13.3 | % |
| Texas | | | 9.4 | % |
| Pennsylvania | | | 7.5 | % |
| Colorado | | | 6.1 | % |
| New York | | | 4.9 | % |
| New Jersey | | | 4.7 | % |
| Washington | | | 4.6 | % |
| Wisconsin | | | 3.9 | % |
| Illinois | | | 3.9 | % |
| Louisiana | | | 3.4 | % |
| Arizona | | | 3.2 | % |
| Indiana | | | 3.2 | % |
| Hawaii | | | 3.0 | % |
| Georgia | | | 2.6 | % |
| Alabama | | | 2.5 | % |
| North Dakota | | | 2.5 | % |
| Nevada | | | 2.3 | % |
| Other | | | 19.0 | % |
Portfolio Composition5 (as a % of total investments) | | | | |
| Tax Obligation/Limited | | | 17.8 | % |
| Utilities | | | 17.5 | % |
| U.S. Guaranteed | | | 16.4 | % |
| Transportation | | | 11.2 | % |
| Water and Sewer | | | 10.8 | % |
| Tax Obligation/General | | | 10.3 | % |
| Education and Civic Organizations | | | 7.9 | % |
| Health Care | | | 6.4 | % |
| Other | | | 1.7 | % |
Insurers5 (as a % of total Insured investments) | | | | |
NPFG3 | | | 27.1 | % |
| AGM | | | 25.1 | % |
| AMBAC | | | 21.4 | % |
| FGIC | | | 18.3 | % |
| Other | | | 8.1 | % |
| | Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. |
| 1 | The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. At the end of the reporting period, 97% of the Fund’s total investments are invested in Insured securities. |
| 2 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 3 | MBIA’s public finance subsidiary. |
| 4 | Ratings shown are the highest of Standard & Poor’s Group, Moody’s Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| 5 | Holdings are subject to change. |
Nuveen Investments 15
| NVG | | Nuveen Insured |
| Performance | | Dividend Advantage |
| OVERVIEW | | Municipal Fund |
| | | as of October 31, 2010 |
| Fund Snapshot | | | | |
| Common Share Price | | $ | 14.80 | |
| Common Share Net Asset Value (NAV) | | $ | 15.20 | |
| Premium/(Discount) to NAV | | | -2.63 | % |
| Market Yield | | | 5.68 | % |
Taxable-Equivalent Yield2 | | | 7.89 | % |
| Net Assets Applicable to Common Shares ($000) | | $ | 452,908 | |
| Average Effective Maturity on Securities (Years) | | | 12.75 | |
| Leverage-Adjusted Duration | | | 7.19 | |
Average Annual Total Return (Inception 3/25/02) | | | | | | | |
| | | On Share Price | | On NAV | |
| 1-Year | | | 13.51 | % | | 8.89 | % |
| 5-Year | | | 6.68 | % | | 5.36 | % |
| Since Inception | | | 6.03 | % | | 6.57 | % |
States6 (as a % of total municipal bonds) | | | | |
| Texas | | | 15.1 | % |
| Washington | | | 10.4 | % |
| Indiana | | | 10.4 | % |
| California | | | 9.0 | % |
| Florida | | | 7.8 | % |
| Illinois | | | 7.2 | % |
| Tennessee | | | 6.5 | % |
| New York | | | 4.0 | % |
| Colorado | | | 3.8 | % |
| Pennsylvania | | | 3.2 | % |
| Alaska | | | 2.4 | % |
| Louisiana | | | 2.0 | % |
| Other | | | 18.2 | % |
Portfolio Composition6 (as a % of total investments) | | | | |
| U.S. Guaranteed | | | 25.7 | % |
| Transportation | | | 16.8 | % |
| Tax Obligation/Limited | | | 16.6 | % |
| Tax Obligation/General | | | 9.2 | % |
| Utilities | | | 9.0 | % |
| Health Care | | | 8.1 | % |
| Water and Sewer | | | 5.4 | % |
| Investment Companies | | | 0.2 | % |
| Other | | | 9.0 | % |
Insurers6 (as a % of total Insured investments) | | | | |
NPFG4 | | | 32.1 | % |
| AMBAC | | | 25.4 | % |
| AGM | | | 22.9 | % |
| FGIC | | | 15.8 | % |
| Other | | | 3.8 | % |
| | Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. |
| 1 | The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. At the end of the reporting period, 91% of the Fund’s total investments are invested in Insured securities. |
| 2 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 3 | The Fund paid shareholders a capital gains distribution in December 2009 of $0.0409 per share. |
| 4 | MBIA’s public finance subsidiary. |
| 5 | Ratings shown are the highest of Standard & Poor’s Group, Moody’s Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| 6 | Holdings are subject to change. |
16 Nuveen Investments
| NEA | | Nuveen Insured |
| Performance | | Tax-Free Advantage |
| OVERVIEW | | Municipal Fund |
| | | as of October 31, 2010 |
| Fund Snapshot | | | | |
| Common Share Price | | $ | 14.95 | |
| Common Share Net Asset Value (NAV) | | $ | 14.98 | |
| Premium/(Discount) to NAV | | | -0.20 | % |
| Market Yield | | | 5.46 | % |
Taxable-Equivalent Yield2 | | | 7.58 | % |
| Net Assets Applicable to Common Shares ($000) | | $ | 333,074 | |
| Average Effective Maturity on Securities (Years) | | | 14.60 | |
| Leverage-Adjusted Duration | | | 6.82 | |
Average Annual Total Return (Inception 11/21/02) | | | | | | | |
| | | On Share Price | | On NAV | |
| 1-Year | | | 17.27 | % | | 9.76 | % |
| 5-Year | | | 7.84 | % | | 5.88 | % |
| Since Inception | | | 5.68 | % | | 6.14 | % |
States5 (as a % of total investments) | | | | |
| Florida | | | 15.7 | % |
| California | | | 14.3 | % |
| New York | | | 6.9 | % |
| Michigan | | | 6.6 | % |
| Washington | | | 6.5 | % |
| Pennsylvania | | | 5.2 | % |
| Texas | | | 5.0 | % |
| Indiana | | | 4.8 | % |
| Alabama | | | 4.8 | % |
| South Carolina | | | 3.8 | % |
| Wisconsin | | | 3.7 | % |
| Arizona | | | 3.5 | % |
| Other | | | 19.2 | % |
Portfolio Composition5 (as a % of total investments) | | | | |
| Tax Obligation/Limited | | | 27.6 | % |
| U.S. Guaranteed | | | 26.2 | % |
| Health Care | | | 8.8 | % |
| Water and Sewer | | | 8.8 | % |
| Transportation | | | 8.4 | % |
| Utilities | | | 8.2 | % |
| Tax Obligation/General | | | 6.5 | % |
| Education and Civic Organizations | | | 5.0 | % |
| Other | | | 0.5 | % |
Insurers5 (as a % of total Insured investments) | | | | |
NPFG3 | | | 32.1 | % |
| AMBAC | | | 26.2 | % |
| AGM | | | 21.9 | % |
| FGIC | | | 10.8 | % |
| Other | | | 9.0 | % |
| | Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page. |
| 1 | The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. At the end of the reporting period, 89% of the Fund’s total investments are invested in Insured securities. |
| 2 | Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a federal income tax rate of 28%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. |
| 3 | MBIA’s public finance subsidiary. |
| 4 | Ratings shown are the highest of Standard & Poor’s Group, Moody’s Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| 5 | Holdings are subject to change. |
Nuveen Investments 17
| NQI | | Shareholder Meeting Report |
| NIO | | |
| NIF | | The annual meeting of shareholders was held on July 27, 2010, in the Lobby Conference Room, 333 West Wacker Drive, Chicago, IL 60606; at this meeting the shareholders were asked to vote on the election of Board Members. |
| | | NQI | | NIO | | NIF |
| | | | | | | | | | | | | |
| Approval of the Board Members was reached as follows: | | | | | | | | | | | | |
| John P. Amboian | | | | | | | | | | | | |
| For | | 30,613,830 | | — | | 78,404,051 | | — | | 16,487,290 | | — |
| Withhold | | 717,945 | | — | | 1,763,615 | | — | | 289,391 | | — |
| Total | | 31,331,775 | | — | | 80,167,666 | | — | | 16,776,681 | | — |
| Robert P. Bremner | | | | | | | | | | | | |
| For | | 30,611,131 | | — | | 78,336,691 | | — | | 16,470,007 | | — |
| Withhold | | 720,644 | | — | | 1,830,975 | | — | | 306,674 | | — |
| Total | | 31,331,775 | | — | | 80,167,666 | | — | | 16,776,681 | | — |
| Jack B. Evans | | | | | | | | | | | | |
| For | | 30,612,334 | | — | | 78,377,439 | | — | | 16,487,389 | | — |
| Withhold | | 719,441 | | — | | 1,790,227 | | — | | 289,292 | | — |
| Total | | 31,331,775 | | — | | 80,167,666 | | — | | 16,776,681 | | — |
| William C. Hunter | | | | | | | | | | | | |
| For | | — | | 3,276 | | — | | 9,260 | | — | | 2,315 |
| Withhold | | — | | 735 | | — | | 3,314 | | — | | 496 |
| Total | | — | | 4,011 | | — | | 12,574 | | — | | 2,811 |
| David J. Kundert | | | | | | | | | | | | |
| For | | 30,606,757 | | — | | 78,417,667 | | — | | 16,469,210 | | — |
| Withhold | | 725,018 | | — | | 1,749,999 | | — | | 307,471 | | — |
| Total | | 31,331,775 | | — | | 80,167,666 | | — | | 16,776,681 | | — |
| William J. Schneider | | | | | | | | | | | | |
| For | | — | | 3,265 | | — | | 9,253 | | — | | 2,315 |
| Withhold | | — | | 746 | | — | | 3,321 | | — | | 496 |
| Total | | — | | 4,011 | | — | | 12,574 | | — | | 2,811 |
| Judith M. Stockdale | | | | | | | | | | | | |
| For | | 30,566,893 | | — | | 78,334,063 | | — | | 16,496,748 | | — |
| Withhold | | 764,882 | | — | | 1,833,603 | | — | | 279,933 | | — |
| Total | | 31,331,775 | | — | | 80,167,666 | | — | | 16,776,681 | | — |
| Carole E. Stone | | | | | | | | | | | | |
| For | | 30,550,601 | | — | | 78,358,144 | | — | | 16,453,411 | | — |
| Withhold | | 781,174 | | — | | 1,809,522 | | — | | 323,270 | | — |
| Total | | 31,331,775 | | — | | 80,167,666 | | — | | 16,776,681 | | — |
| Terence J. Toth | | | | | | | | | | | | |
| For | | 30,616,677 | | — | | 78,433,218 | | — | | 16,498,870 | | — |
| Withhold | | 715,098 | | — | | 1,734,448 | | — | | 277,811 | | — |
| Total | | 31,331,775 | | — | | 80,167,666 | | — | | 16,776,681 | | — |
18 Nuveen Investments
| | | NPX | | NVG | | NEA |
| | | | | | | | | | | | | |
| Approval of the Board Members was reached as follows: | | | | | | | | | | | | |
| John P. Amboian | | | | | | | | | | | | |
| For | | — | | — | | — | | — | | — | | — |
| Withhold | | — | | — | | — | | — | | — | | — |
| Total | | — | | — | | — | | — | | — | | — |
| Robert P. Bremner | | | | | | | | | | | | |
| For | | — | | — | | — | | — | | — | | — |
| Withhold | | — | | — | | — | | — | | — | | — |
| Total | | — | | — | | — | | — | | — | | — |
| Jack B. Evans | | | | | | | | | | | | |
| For | | — | | — | | — | | — | | — | | — |
| Withhold | | — | | — | | — | | — | | — | | — |
| Total | | — | | — | | — | | — | | — | | — |
| William C. Hunter | | | | | | | | | | | | |
| For | | — | | 1,095 | | — | | 7,486,242 | | — | | 5,937,133 |
| Withhold | | — | | 995 | | — | | 314,604 | | — | | 766,332 |
| Total | | — | | 2,090 | | — | | 7,800,846 | | — | | 6,703,465 |
| David J. Kundert | | | | | | | | | | | | |
| For | | — | | — | | — | | — | | — | | — |
| Withhold | | — | | — | | — | | — | | — | | — |
| Total | | — | | — | | — | | — | | — | | — |
| William J. Schneider | | | | | | | | | | | | |
| For | | — | | 1,095 | | — | | 7,486,242 | | — | | 5,932,133 |
| Withhold | | — | | 995 | | — | | 314,604 | | — | | 771,332 |
| Total | | — | | 2,090 | | — | | 7,800,846 | | — | | 6,703,465 |
| Judith M. Stockdale | | | | | | | | | | | | |
| For | | 31,674,789 | | — | | 32,499,469 | | — | | 24,360,029 | | — |
| Withhold | | 604,819 | | — | | 1,000,128 | | — | | 1,349,707 | | — |
| Total | | 32,279,608 | | — | | 33,499,597 | | — | | 25,709,736 | | — |
| Carole E. Stone | | | | | | | | | | | | |
| For | | 31,653,772 | | — | | 32,501,997 | | — | | 24,396,787 | | — |
| Withhold | | 625,836 | | — | | 997,600 | | — | | 1,312,949 | | — |
| Total | | 32,279,608 | | — | | 33,499,597 | | — | | 25,709,736 | | — |
| Terence J. Toth | | | | | | | | | | | | |
| For | | — | | — | | — | | — | | — | | — |
| Withhold | | — | | — | | — | | — | | — | | — |
| Total | | — | | — | | — | | — | | — | | — |
Nuveen Investments 19
Report of Independent
Registered Public Accounting Firm
The Board of Directors/Trustees and Shareholders
Nuveen Insured Quality Municipal Fund, Inc.
Nuveen Insured Municipal Opportunity Fund, Inc.
Nuveen Premier Insured Municipal Income Fund, Inc.
Nuveen Insured Premium Income Municipal Fund 2
Nuveen Insured Dividend Advantage Municipal Fund
Nuveen Insured Tax-Free Advantage Municipal Fund
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Insured Quality Municipal Fund, Inc., Nuveen Insured Municipal Opportunity Fund, Inc., Nuveen Premier Insured Municipal Income Fund, Inc., Nuveen Insured Premium Income Municipal Fund 2, Nuveen Insured Dividend Advantage Municipal Fund and Nuveen Insured Tax-Free Advantage Municipal Fund (the “Funds”) as of October 31, 2010, and the related statements of operations and cash flows (Nuveen Insured Quality Municipal Fund, Inc., Nuveen Insured Premium Income Municipal Fund 2, Nuveen Insured Dividend Advantage Municipal Fund and Nuveen Insured Tax-Free Advantage Municipal Fund only) for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts an d disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2010, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Insured Quality Municipal Fund, Inc., Nuveen Insured Municipal Opportunity Fund, Inc., Nuveen Premier Insured Municipal Income Fund, Inc., Nuveen Insured Premium Income Municipal Fund 2, Nuveen Insured Dividend Advantage Municipal Fund and Nuveen Insured Tax-Free Advantage Municipal Fund at October 31, 2010, the results of their operations and cash flows (Nuveen Insured Quality Municipal Fund, Inc., Nuveen Insured Premium Income Municipal Fund 2, Nuveen Insured Dividend Advantage Municipal Fund and Nuveen Insured Tax-Free Advantage Municipal Fund only) for the year then ended, the changes in their net assets for each of the two years in the period then ended and the f inancial highlights for each of the five years in the period then ended in conformity with U.S. generally accepted accounting principles.
Chicago, Illinois
December 28, 2010
20 Nuveen Investments
| | | Nuveen Insured Quality Municipal Fund, Inc. |
| NQI | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Alabama – 1.5% (1.0% of Total Investments) | | | | | |
| $ | 1,135 | | Birmingham Waterworks and Sewerage Board, Alabama, Water and Sewerage Revenue Bonds, Series 2002B, 5.250%, 1/01/20 (Pre-refunded 1/01/13) – NPFG Insured | 1/13 at 100.00 | AAA | $ | 1,249,113 | |
| | 7,000 | | Huntsville Healthcare Authority, Alabama, Revenue Bonds, Series 2005A, 5.000%, 6/01/24 – NPFG Insured | 6/15 at 100.00 | A1 | | 7,160,860 | |
| | 8,135 | | Total Alabama | | | | 8,409,973 | |
| | | | Arizona – 5.5% (3.6% of Total Investments) | | | | | |
| | | | Arizona State, Certificates of Participation, Series 2010A: | | | | | |
| | 1,200 | | 5.250%, 10/01/28 – AGM Insured | 10/19 at 100.00 | AA+ | | 1,272,732 | |
| | 1,500 | | 5.000%, 10/01/29 – AGM Insured | 10/19 at 100.00 | AA+ | | 1,553,445 | |
| | 7,065 | | Arizona State, State Lottery Revenue Bonds, Series 2010A, 5.000%, 7/01/29 – AGC Insured | 1/20 at 100.00 | AA+ | | 7,381,653 | |
| | 2,750 | | Mesa, Arizona, Utility System Revenue Bonds, Reset Option Longs, Series 11033, 14.520%,
7/01/26 – AGM Insured (IF) | 7/17 at 100.00 | AA+ | | 2,696,980 | |
| | 9,200 | | Phoenix, Arizona, Civic Improvement Corporation, Senior Lien Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 – FGIC Insured (Alternative Minimum Tax) | 7/12 at 100.00 | AA– | | 9,248,208 | |
| | 8,755 | | Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic Plaza, Series 2005B, 0.000%, 7/01/39 – FGIC Insured | No Opt. Call | AA | | 8,113,083 | |
| | 30,470 | | Total Arizona | | | | 30,266,101 | |
| | | | Arkansas – 0.5% (0.3% of Total Investments) | | | | | |
| | 2,250 | | University of Arkansas, Fayetteville, Revenue Bonds, Medical Sciences Campus, Series 2004B, 5.000%, 11/01/24 – NPFG Insured | 11/14 at 100.00 | Aa2 | | 2,482,020 | |
| | | | California – 27.3% (17.9% of Total Investments) | | | | | |
| | | | California Department of Water Resources, Water System Revenue Bonds, Central Valley Project, Series 2005AC: | | | | | |
| | 4,010 | | 5.000%, 12/01/24 – NPFG Insured (UB) | 12/14 at 100.00 | AAA | | 4,489,556 | |
| | 3,965 | | 5.000%, 12/01/26 – NPFG Insured (UB) | 12/14 at 100.00 | AAA | | 4,368,518 | |
| | 13,445 | | California State, General Obligation Bonds, Series 2002, 5.000%, 4/01/27 – AMBAC Insured | 4/12 at 100.00 | A1 | | 13,534,275 | |
| | 7,055 | | California State, General Obligation Bonds, Series 2002, 5.000%, 4/01/27 (Pre-refunded 4/01/12) – AMBAC Insured | 4/12 at 100.00 | AAA | | 7,518,443 | |
| | 8,000 | | California, General Obligation Bonds, Series 2002, 5.000%, 10/01/32 – NPFG Insured | 10/12 at 100.00 | A1 | | 8,035,280 | |
| | 5 | | California, General Obligation Bonds, Series 2004, 5.000%, 4/01/31 – AMBAC Insured | 4/14 at 100.00 | A1 | | 5,048 | |
| | 3,745 | | California, General Obligation Bonds, Series 2004, 5.000%, 4/01/31 (Pre-refunded 4/01/14) – AMBAC Insured | 4/14 at 100.00 | AAA | | 4,276,266 | |
| | 2,340 | | Cerritos Public Financing Authority, California, Tax Allocation Revenue Bonds, Los Cerritos Redevelopment Projects, Series 2002A, 5.000%, 11/01/24 – AMBAC Insured | 11/17 at 102.00 | A– | | 2,374,749 | |
| | 5,000 | | Clovis Unified School District, Fresno County, California, General Obligation Bonds, Series 2001A, 0.000%, 8/01/25 – FGIC Insured (ETM) | No Opt. Call | AA (4) | | 3,022,750 | |
| | | | Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999: | | | | | |
| | 22,985 | | 0.000%, 1/15/24 – NPFG Insured | 1/11 at 47.20 | A | | 10,012,726 | |
| | 22,000 | | 0.000%, 1/15/31 – NPFG Insured | 1/11 at 30.88 | A | | 5,875,760 | |
| | 50,000 | | 0.000%, 1/15/37 – NPFG Insured | 1/11 at 21.42 | A | | 8,469,500 | |
| | 5,000 | | Garden Grove, California, Certificates of Participation, Financing Project, Series 2002A, 5.125%, 3/01/32 – AMBAC Insured | 3/12 at 101.00 | A | | 5,065,400 | |
| | 8,500 | | Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/35 – FGIC Insured | 6/15 at 100.00 | A2 | | 8,185,330 | |
| | 5,795 | | Kern Community College District, California, General Obligation Bonds, Series 2006, 0.000%, 11/01/25 – AGM Insured | No Opt. Call | AA+ | | 2,717,449 | |
| | 5,268 | | Moreno Valley Public Finance Authority, California, GNMA Collateralized Assisted Living Housing Revenue Bonds, CDC Assisted Living Project, Series 2000A, 7.500%, 1/20/42 | 1/12 at 105.00 | Aaa | | 5,738,222 | |
Nuveen Investments 21
| | | Nuveen Insured Quality Municipal Fund, Inc. (continued) |
| NQI | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | California (continued) | | | | | |
| $ | 4,675 | | Ontario Redevelopment Financing Authority, San Bernardino County, California, Revenue Bonds, Redevelopment Project 1, Series 1993, 5.850%, 8/01/22 – NPFG Insured (ETM) | 1/11 at 100.00 | A (4) | $ | 5,212,251 | |
| | 2,590 | | Riverside County Public Financing Authority, California, Tax Allocation Bonds, Multiple Projects, Series 2004, 5.000%, 10/01/25 – SYNCORA GTY Insured | 10/14 at 100.00 | BBB | | 2,468,089 | |
| | 2,000 | | San Diego Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Centre City Project, Series 2004A, 5.000%, 9/01/21 – SYNCORA GTY Insured | 9/14 at 100.00 | A | | 2,054,280 | |
| | | | San Francisco Airports Commission, California, Revenue Refunding Bonds, San Francisco International Airport, Second Series 2001, Issue 27A: | | | | | |
| | 7,200 | | 5.125%, 5/01/21 – NPFG Insured (Alternative Minimum Tax) | 5/11 at 100.00 | A1 | | 7,247,160 | |
| | 12,690 | | 5.250%, 5/01/31 – NPFG Insured (Alternative Minimum Tax) | 5/11 at 100.00 | A1 | | 12,696,472 | |
| | | | San Francisco Bay Area Rapid Transit District, California, Sales Tax Revenue Bonds, Refunding Series 2005A: | | | | | |
| | 2,000 | | 5.000%, 7/01/21 – NPFG Insured | 7/15 at 100.00 | AA+ | | 2,196,880 | |
| | 3,655 | | 5.000%, 7/01/22 – NPFG Insured | 7/15 at 100.00 | AA+ | | 4,016,004 | |
| | 3,840 | | 5.000%, 7/01/23 – NPFG Insured | 7/15 at 100.00 | AA+ | | 4,191,936 | |
| | 8,965 | | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30 – NPFG Insured | 8/17 at 100.00 | A | | 8,149,633 | |
| | 3,500 | | Saugus Union School District, Los Angeles County, California, General Obligation Bonds, Series 2006, 0.000%, 8/01/23 – FGIC Insured | No Opt. Call | Aa2 | | 1,763,440 | |
| | 1,000 | | Sierra Joint Community College District, Tahoe Truckee, California, General Obligation Bonds, School Facilities Improvement District 1, Series 2005A, 5.000%, 8/01/27 – FGIC Insured | 8/14 at 100.00 | Aa2 | | 1,054,580 | |
| | 1,525 | | Sierra Joint Community College District, Western Nevada, California, General Obligation Bonds, School Facilities Improvement District 2, Series 2005A, 5.000%, 8/01/27 – FGIC Insured | 8/14 at 100.00 | Aa2 | | 1,608,235 | |
| | 3,170 | | Ventura County Community College District, California, General Obligation Bonds, Series 2005B, 5.000%, 8/01/28 – NPFG Insured | 8/15 at 100.00 | AA | | 3,311,033 | |
| | 223,923 | | Total California | | | | 149,659,265 | |
| | | | Colorado – 3.5% (2.3% of Total Investments) | | | | | |
| | 2,015 | | Board of Trustees of the University of Northern Colorado, Revenue Bonds, Series 2005, 5.000%, 6/01/22 – AGM Insured | 6/15 at 100.00 | AA+ | | 2,183,555 | |
| | | | Denver City and County, Colorado, Airport Revenue Bonds, Series 2006: | | | | | |
| | 5,365 | | 5.000%, 11/15/23 – FGIC Insured (UB) | 11/16 at 100.00 | A+ | | 5,762,117 | |
| | 1,000 | | 5.000%, 11/15/24 – FGIC Insured | 11/16 at 100.00 | A+ | | 1,069,260 | |
| | 1,085 | | Denver City and County, Colorado, Airport Revenue Bonds, Trust 2365, 13.476%, 11/15/25 – FGIC Insured (IF) | 11/16 at 100.00 | A+ | | 1,363,845 | |
| | 9,780 | | E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B, 0.000%, 9/01/32 – NPFG Insured | No Opt. Call | A | | 2,328,716 | |
| | 10,000 | | E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004A, 0.000%, 9/01/27 – NPFG Insured | No Opt. Call | A | | 3,456,100 | |
| | 1,250 | | Jefferson County School District R1, Colorado, General Obligation Bonds, Series 2004, 5.000%, 12/15/24 (Pre-refunded 12/15/14) – AGM Insured (UB) | 12/14 at 100.00 | AA+ (4) | | 1,452,563 | |
| | 1,100 | | Poudre Tech Metro District, Colorado, Unlimited Property Tax Supported Revenue Bonds, Refunding & Improvement Series 2010A, 5.000%,
12/01/39 – AGM Insured | 12/20 at 100.00 | AA+ | | 1,117,380 | |
| | 500 | | University of Colorado, Enterprise System Revenue Bonds, Series 2005, 5.000%, 6/01/30 – FGIC Insured | 6/15 at 100.00 | Aa2 | | 532,290 | |
| | 32,095 | | Total Colorado | | | | 19,265,826 | |
| | | | Connecticut – 0.2% (0.1% of Total Investments) | | | | | |
| | 1,000 | | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Wesleyan University, Series 2010G, 5.000%, 7/01/39 | 7/20 at 100.00 | AA | | 1,080,750 | |
| | | | District of Columbia – 1.0% (0.6% of Total Investments) | | | | | |
| | 1,335 | | Washington Convention Center Authority, District of Columbia, Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals 1606, 11.401%, 10/01/30 – AMBAC Insured (IF) | 10/16 at 100.00 | AA+ | | 1,392,071 | |
| | 3,920 | | Washington Convention Center Authority, District of Columbia, Dedicated Tax Revenue Bonds, Residual Series 1731, 1736, 11.373%, 10/01/36 – AMBAC Insured (IF) | 10/16 at 100.00 | AA+ | | 3,977,271 | |
| | 5,255 | | Total District of Columbia | | | | 5,369,342 | |
22 Nuveen Investments
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Florida – 9.7% (6.4% of Total Investments) | | | | | |
| $ | 4,455 | | Broward County School Board, Florida, Certificates of Participation, Series 2005A, 5.000%, 7/01/28 – AGM Insured | 7/15 at 100.00 | AA+ | $ | 4,603,574 | |
| | 3,000 | | Citizens Property Insurance Corporation, Florida, High-Risk Account Senior Secured Bonds Series 2010A-1, 5.000%, 6/01/16 – AGM Insured | No Opt. Call | AA+ | | 3,271,050 | |
| | 3,450 | | Collier County, Florida, Capital Improvement Revenue Bonds, Series 2005, 5.000%, 10/01/24 – NPFG Insured | 10/14 at 100.00 | AA– | | 3,626,399 | |
| | 2,750 | | Florida State Board of Education, Full Faith and Credit Public Education Capital Outlay Bonds, Series 2003J, 5.000%, 6/01/22 – AMBAC Insured | 6/13 at 101.00 | AAA | | 3,008,253 | |
| | 2,550 | | Florida State Board of Education, Public Education Capital Outlay Bonds, Series 2008, Trust 2929, 16.750%, 12/01/16 – AGC Insured (IF) | No Opt. Call | AA+ | | 3,265,734 | |
| | 20,000 | | Lee County, Florida, Airport Revenue Bonds, Series 2000A, 5.750%,
10/01/25 – AGM Insured (Alternative Minimum Tax) | 10/11 at 100.00 | AA+ | | 20,222,800 | |
| | 4,115 | | Miami-Dade County Housing Finance Authority, Florida, Multifamily Housing Revenue Bonds, Monterey Pointe Apartments, Series 2001-2A, 5.850%, 7/01/37 – AGM Insured (Alternative Minimum Tax) | 7/11 at 100.00 | AA+ | | 4,142,118 | |
| | 7,000 | | Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2002, 5.375%, 10/01/32 – FGIC Insured (Alternative Minimum Tax) | 10/12 at 100.00 | A | | 7,040,250 | |
| | 3,730 | | Palm Beach County School Board, Florida, Certificates of Participation, Series 2003A, 5.000%, 8/01/16 – AMBAC Insured | 8/13 at 100.00 | AA– | | 4,028,960 | |
| | 51,050 | | Total Florida | | | | 53,209,138 | |
| | | | Georgia – 1.6% (1.0% of Total Investments) | | | | | |
| | 1,000 | | Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 2004, 5.000%, 11/01/22 – AGM Insured | 11/14 at 100.00 | AA+ | | 1,054,460 | |
| | 7,000 | | Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 2009B, 5.375%, 11/01/39 – AGM Insured | 11/19 at 100.00 | AA+ | | 7,413,280 | |
| | 8,000 | | Total Georgia | | | | 8,467,740 | |
| | | | Hawaii – 0.3% (0.2% of Total Investments) | | | | | |
| | 1,620 | | Hawaii County, Hawaii, General Obligation Bonds, Series 2003A, 5.000%, 7/15/21 – AGM Insured | 7/13 at 100.00 | AA+ | | 1,770,044 | |
| | | | Illinois – 11.0% (7.2% of Total Investments) | | | | | |
| | 9,500 | | Chicago, Illinois, Second Lien General Airport Revenue Refunding Bonds, O’Hare International Airport, Series 1999, 5.500%, 1/01/15 – AMBAC Insured (Alternative Minimum Tax) | 1/11 at 100.50 | AA– | | 9,622,740 | |
| | 1,775 | | Chicago, Illinois, Third Lien General Airport Revenue Bonds, O’Hare International Airport, Series 2005A, 5.250%, 1/01/24 – NPFG Insured | 1/16 at 100.00 | A1 | | 1,876,796 | |
| | 13,275 | | Illinois, General Obligation Bonds, Illinois FIRST Program, Series 2001, 5.250%, 5/01/26 – AGM Insured | 5/11 at 100.00 | AA+ | | 13,338,720 | |
| | 15,785 | | Illinois, General Obligation Bonds, Illinois FIRST Program, Series 2002, 5.250%, 4/01/27 – AGM Insured | 4/12 at 100.00 | AA+ | | 15,973,946 | |
| | 5,000 | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Capital Appreciation Refunding Series 2010B-1, 0.000%, 6/15/45 – AGM Insured | No Opt. Call | AAA | | 607,650 | |
| | 18,000 | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Series 2002A, 0.000%, 12/15/24 – NPFG Insured | No Opt. Call | AAA | | 8,620,200 | |
| | 10,000 | | University of Illinois, Certificates of Participation, Utility Infrastructure Projects, Series 2001B, 5.250%, 8/15/21 (Pre-refunded 8/15/11) – AMBAC Insured | 8/11 at 100.00 | Aa2 (4) | | 10,392,400 | |
| | 73,335 | | Total Illinois | | | | 60,432,452 | |
| | | | Indiana – 2.1% (1.4% of Total Investments) | | | | | |
| | 3,680 | | Indiana Municipal Power Agency, Power Supply Revenue Bonds, Series 2007A, 5.000%, 1/01/42 – NPFG Insured | 1/17 at 100.00 | A+ | | 3,756,102 | |
| | 6,905 | | Indiana Transportation Finance Authority, Highway Revenue Bonds, Series 1990A, 7.250%, 6/01/15 – AMBAC Insured | No Opt. Call | AA+ | | 7,910,161 | |
| | 10,585 | | Total Indiana | | | | 11,666,263 | |
Nuveen Investments 23
| | | Nuveen Insured Quality Municipal Fund, Inc. (continued) |
| NQI | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Kansas – 1.4% (0.9% of Total Investments) | | | | | |
| $ | 5,500 | | Kansas Development Finance Authority, Revenue Bonds, Sisters of Charity of Leavenworth Health Services Corporation, Series 2010A, 5.000%, 1/01/40 | No Opt. Call | AA | $ | 5,671,105 | |
| | 2,000 | | Wichita, Kansas, Water and Sewerage Utility Revenue Bonds, Series 2003, 5.000%, 10/01/21 – FGIC Insured | 10/13 at 100.00 | Aa2 | | 2,147,040 | |
| | 7,500 | | Total Kansas | | | | 7,818,145 | |
| | | | Kentucky – 6.0% (3.9% of Total Investments) | | | | | |
| | 3,015 | | Kentucky Asset/Liability Commission, General Fund Revenue Project Notes, First Series 2005, 5.000%, 5/01/25 – NPFG Insured | 5/15 at 100.00 | Aa2 | | 3,173,740 | |
| | | | Kentucky Economic Development Finance Authority, Health System Revenue Bonds, Norton Healthcare Inc., Series 2000C: | | | | | |
| | 2,530 | | 6.150%, 10/01/27 – NPFG Insured | 10/13 at 101.00 | A | | 2,636,968 | |
| | 12,060 | | 6.150%, 10/01/28 – NPFG Insured | 10/13 at 101.00 | A | | 12,569,897 | |
| | | | Kentucky Economic Development Finance Authority, Health System Revenue Bonds, Norton Healthcare Inc., Series 2000C: | | | | | |
| | 3,815 | | 6.150%, 10/01/27 (Pre-refunded 10/01/13) – NPFG Insured | 10/13 at 101.00 | A (4) | | 4,441,194 | |
| | 6,125 | | 6.150%, 10/01/28 (Pre-refunded 10/01/13) – NPFG Insured | 10/13 at 101.00 | A (4) | | 7,130,358 | |
| | 2,230 | | Kentucky State Property and Buildings Commission, Revenue Bonds, Project 85, Series 2005, 5.000%, 8/01/23 (Pre-refunded 8/01/15) – AGM Insured | 8/15 at 100.00 | AA+ (4) | | 2,647,791 | |
| | 29,775 | | Total Kentucky | | | | 32,599,948 | |
| | | | Louisiana – 3.7% (2.4% of Total Investments) | | | | | |
| | | | Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006A: | | | | | |
| | 11,325 | | 4.750%, 5/01/39 – AGM Insured (UB) | 5/16 at 100.00 | AA+ | | 11,541,874 | |
| | 8,940 | | 4.500%, 5/01/41 – FGIC Insured (UB) | 5/16 at 100.00 | Aa1 | | 8,946,437 | |
| | 10 | | Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006, Residuals 660-1, 15.415%, 5/01/34 – FGIC Insured (IF) | 5/16 at 100.00 | AA | | 10,029 | |
| | 5 | | Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006, Residuals 660-1, 16.301%, 5/01/34, FGIC Insured (IF) | 5/16 at 100.00 | AA | | 5,014 | |
| | 20,280 | | Total Louisiana | | | | 20,503,354 | |
| | | | Maine – 0.1% (0.1% of Total Investments) | | | | | |
| | 555 | | Maine Health and Higher Educational Facilities Authority, Revenue Bonds, Series 1999B, 6.000%, 7/01/29 – NPFG Insured | 7/11 at 100.00 | Aaa | | 559,784 | |
| | | | Maryland – 1.8% (1.1% of Total Investments) | | | | | |
| | 2,030 | | Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Western Maryland Health, Series 2006A, 4.750%, 7/01/36 – NPFG Insured | 7/16 at 100.00 | A | | 2,001,702 | |
| | 7,335 | | Maryland Transportation Authority, Airport Parking Revenue Bonds, Baltimore-Washington International Airport Passenger Facility, Series 2002B, 5.500%, 3/01/18 – AMBAC Insured (Alternative Minimum Tax) | 3/12 at 101.00 | A2 | | 7,627,520 | |
| | 9,365 | | Total Maryland | | | | 9,629,222 | |
| | | | Massachusetts – 4.3% (2.8% of Total Investments) | | | | | |
| | 5,000 | | Massachusetts Bay Transportation Authority, Sales Tax Revenue Bonds, Senior Lien Series 2002A, 5.000%, 7/01/27 (Pre-refunded 7/01/12) – FGIC Insured | 7/12 at 100.00 | AAA | | 5,383,350 | |
| | 4,000 | | Massachusetts Department of Transportation, Metropolitan Highway System Revenue Bonds, Commonwealth Contract Assistance Secured, Refunding Series 2010B, 5.000%, 1/01/35 | 1/20 at 100.00 | AA | | 4,274,280 | |
| | 3,335 | | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Massachusetts Institute of Technology, Tender Option Bond Trust 11824, 13.157%, 1/01/16 (IF) | No Opt. Call | AAA | | 4,093,779 | |
| | 3,465 | | Massachusetts Water Resources Authority, General Revenue Bonds, Series 2007A, 4.500%, 8/01/46 – AGM Insured (UB) | 2/17 at 100.00 | AA+ | | 3,485,994 | |
| | | | Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, Series 2004: | | | | | |
| | 1,250 | | 5.250%, 1/01/21 (Pre-refunded 1/01/14) – FGIC Insured | 1/14 at 100.00 | A1 (4) | | 1,415,663 | |
| | 1,000 | | 5.250%, 1/01/22 (Pre-refunded 1/01/14) – FGIC Insured | 1/14 at 100.00 | A1 (4) | | 1,132,530 | |
| | 1,195 | | 5.250%, 1/01/23 (Pre-refunded 1/01/14) – FGIC Insured | 1/14 at 100.00 | A1 (4) | | 1,353,373 | |
| | 2,000 | | 5.250%, 1/01/24 (Pre-refunded 1/01/14) – FGIC Insured | 1/14 at 100.00 | A1 (4) | | 2,265,060 | |
| | 21,245 | | Total Massachusetts | | | | 23,404,029 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Michigan – 1.2% (0.8% of Total Investments) | | | | | |
| $ | 1,825 | | Marysville Public School District, St Claire County, Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/28 – AGM Insured | 5/17 at 100.00 | AA+ | $ | 1,919,553 | |
| | 4,750 | | Michigan Strategic Fund, Collateralized Limited Obligation Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 1999A, 5.550%, 9/01/29 – NPFG Insured (Alternative Minimum Tax) | 3/11 at 101.00 | A | | 4,764,868 | |
| | 6,575 | | Total Michigan | | | | 6,684,421 | |
| | | | Minnesota – 0.2% (0.1% of Total Investments) | | | | | |
| | 1,000 | | Minneapolis-Saint Paul Housing and Redevelopment Authority, Minnesota, Health Care Revenue Bonds, Children’s Health Care, Series 2004A-1 Remarketed, 4.625%, 8/15/29 – AGM Insured | 8/20 at 100.00 | AA+ | | 1,044,820 | |
| | | | Mississippi – 2.2% (1.5% of Total Investments) | | | | | |
| | 2,715 | | Harrison County Wastewater Management District, Mississippi, Revenue Refunding Bonds, Wastewater Treatment Facilities, Series 1991B, 7.750%, 2/01/14 – FGIC Insured (ETM) | No Opt. Call | A (4) | | 3,311,757 | |
| | 2,545 | | Harrison County Wastewater Management District, Mississippi, Wastewater Treatment Facilities Revenue Refunding Bonds, Series 1991A, 8.500%, 2/01/13 – FGIC Insured (ETM) | No Opt. Call | N/R (4) | | 2,863,761 | |
| | 5,445 | | Mississippi Development Bank, Special Obligation Bonds, Gulfport Water and Sewer System Project, Series 2005, 5.250%, 7/01/24 – AGM Insured | No Opt. Call | AA+ | | 6,069,051 | |
| | 10,705 | | Total Mississippi | | | | 12,244,569 | |
| | | | Nebraska – 2.3% (1.5% of Total Investments) | | | | | |
| | 12,155 | | Lincoln, Nebraska, Electric System Revenue Bonds, Series 2007A, 4.500%, 9/01/37 – FGIC Insured (UB) | 9/17 at 100.00 | AA | | 12,293,445 | |
| | | | Nevada – 2.2% (1.4% of Total Investments) | | | | | |
| | 27,700 | | Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000, 5.375%, 1/01/40 – AMBAC Insured (5) | 1/11 at 100.00 | D | | 5,820,601 | |
| | 5,720 | | Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, Reno Transportation Rail Access Corridor Project, Series 2002, 5.125%, 6/01/32 (Pre-refunded 6/01/12) – AMBAC Insured | 6/12 at 100.00 | Baa3 (4) | | 6,137,960 | |
| | 33,420 | | Total Nevada | | | | 11,958,561 | |
| | | | New Jersey – 3.8% (2.5% of Total Investments) | | | | | |
| | | | New Jersey Economic Development Authority, Revenue Bonds, Motor Vehicle Surcharge, Series 2004A: | | | | | |
| | 1,700 | | 5.000%, 7/01/22 – NPFG Insured | 7/14 at 100.00 | A | | 1,790,083 | |
| | 1,700 | | 5.000%, 7/01/23 – NPFG Insured | 7/14 at 100.00 | A | | 1,782,892 | |
| | 7,000 | | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2010D, 5.000%, 12/15/23 | No Opt. Call | AA– | | 7,725,760 | |
| | 6,000 | | New Jersey Turnpike Authority, Revenue Bonds, Refunding Series 2005D-1, 5.250%, 1/01/26 – AGM Insured | No Opt. Call | AA+ | | 7,095,120 | |
| | 2,100 | | New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 5.000%, 1/01/19 – FGIC Insured | 7/13 at 100.00 | A+ | | 2,277,954 | |
| | 18,500 | | Total New Jersey | | | | 20,671,809 | |
| | | | New Mexico – 1.2% (0.8% of Total Investments) | | | | | |
| | | | New Mexico Finance Authority, Public Project Revolving Fund Revenue Bonds, Series 2004C: | | | | | |
| | 1,345 | | 5.000%, 6/01/22 – AMBAC Insured | 6/14 at 100.00 | AA+ | | 1,490,946 | |
| | 3,290 | | 5.000%, 6/01/23 – AMBAC Insured | 6/14 at 100.00 | AA+ | | 3,633,706 | |
| | 1,330 | | New Mexico State University, Revenue Bonds, Series 2004, 5.000%,
4/01/23 – AMBAC Insured | 4/14 at 100.00 | AA | | 1,402,791 | |
| | 5,965 | | Total New Mexico | | | | 6,527,443 | |
| | | | New York – 9.7% (6.4% of Total Investments) | | | | | |
| | 15,000 | | Dormitory Authority of the State of New York, Revenue Bonds, School Districts Financing Program, Series 2002D, 5.500%, 10/01/17 – NPFG Insured | 10/12 at 100.00 | A+ | | 16,088,100 | |
| | 4,080 | | Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series 2006A, 4.500%, 2/15/47 – NPFG Insured | 2/17 at 100.00 | A | | 3,917,045 | |
| | 2,890 | | Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2006A, 5.000%, 12/01/25 – FGIC Insured | 6/16 at 100.00 | A | | 3,090,075 | |
Nuveen Investments 25
| | | Nuveen Insured Quality Municipal Fund, Inc. (continued) |
| NQI | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | New York (continued) | | | | | |
| $ | 3,300 | | Long Island Power Authority, New York, Electric System Revenue Bonds, Series 2006F, 4.250%, 5/01/33 – NPFG Insured | 11/16 at 100.00 | A | $ | 3,292,410 | |
| | 7,800 | | Metropolitan Transportation Authority, New York, State Service Contract Refunding Bonds, Series 2002A, 5.000%, 7/01/25 – FGIC Insured | 7/12 at 100.00 | AA– | | 8,133,606 | |
| | 1,290 | | Monroe County Industrial Development Corporation, New York, FHA Insured Mortgage Revenue Bonds, Unity Hospital of Rochester Project, Series 2010, 5.500%, 8/15/40 (WI/DD, Settling 11/05/10) | 2/21 at 100.00 | Aa2 | | 1,387,550 | |
| | 1,740 | | New York Convention Center Development Corporation, Hotel Unit Fee Revenue Bonds, Series 2005, 16.664%, 11/15/44 – AMBAC Insured (IF) | 11/15 at 100.00 | AA+ | | 2,024,316 | |
| | 595 | | New York State Housing Finance Agency, Mortgage Revenue Refunding Bonds, Housing Project, Series 1996A, 6.125%, 11/01/20 – AGM Insured | 11/10 at 100.00 | AA+ | | 595,976 | |
| | 4,200 | | New York State Mortgage Agency, Homeowner Mortgage Revenue Bonds, Series 82, 5.550%, 10/01/19 – NPFG Insured (Alternative Minimum Tax) | 4/11 at 100.00 | Aa1 | | 4,205,544 | |
| | | | New York State Urban Development Corporation, Service Contract Revenue Bonds, Series 2005B: | | | | | |
| | 2,460 | | 5.000%, 3/15/24 – AGM Insured (UB) | 3/15 at 100.00 | AAA | | 2,676,062 | |
| | 2,465 | | 5.000%, 3/15/25 – AGM Insured (UB) | 3/15 at 100.00 | AAA | | 2,662,619 | |
| | 5,000 | | Triborough Bridge and Tunnel Authority, New York, Subordinate Lien General Purpose Revenue Bonds, Series 2003A, 5.000%, 11/15/32 – FGIC Insured | 11/13 at 100.00 | Aa3 | | 5,222,800 | |
| | 50,820 | | Total New York | | | | 53,296,103 | |
| | | | Ohio – 3.6% (2.4% of Total Investments) | | | | | |
| | 7,000 | | Cleveland State University, Ohio, General Receipts Bonds, Series 2004, 5.250%, 6/01/19 – FGIC Insured | 6/14 at 100.00 | A+ | | 7,650,370 | |
| | 9,045 | | Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, Series 2006, 4.250%, 12/01/32 – AMBAC Insured | 12/16 at 100.00 | A1 | | 8,866,814 | |
| | 3,065 | | Oak Hills Local School District, Hamilton County, Ohio, General Obligation Bonds, Refunding Series 2005, 5.000%, 12/01/24 – AGM Insured | 12/15 at 100.00 | AA+ | | 3,321,357 | |
| | 19,110 | | Total Ohio | | | | 19,838,541 | |
| | | | Pennsylvania – 6.2% (4.0% of Total Investments) | | | | | |
| | 3,000 | | Allegheny County Sanitary Authority, Pennsylvania, Sewerage Revenue Bonds, Series 2005A, 5.000%, 12/01/23 – NPFG Insured | 12/15 at 100.00 | A1 | | 3,119,700 | |
| | 1,165 | | Allegheny County Sanitary Authority, Pennsylvania, Sewerage Revenue Bonds, Series 2010, 5.000%, 6/01/40 – AGM Insured | No Opt. Call | AA+ | | 1,212,730 | |
| | 6,000 | | Chester County Health and Educational Facilities Authority, Pennsylvania, Health System Revenue Bonds, Jefferson Health System, Series 2010A, 5.000%, 5/15/40 | 5/20 at 100.00 | AA | | 6,202,320 | |
| | 1,600 | | Delaware County Authority, Pennsylvania, Revenue Bonds, Villanova University, Series 2006, 5.000%, 8/01/24 – AMBAC Insured | 8/16 at 100.00 | A1 | | 1,711,136 | |
| | 2,450 | | Delaware River Port Authority, New Jersey and Pennsylvania, Revenue Bonds, Series 2010E, 5.000%, 1/01/40 – AGM Insured | 1/20 at 100.00 | AA+ | | 2,565,469 | |
| | 735 | | Montgomery County Industrial Development Authority, Pennsylvania, FHA Insured Mortgage Revenue Bonds, New Regional Medical Center Project, Series 2010, 5.375%, 8/01/38 | 8/20 at 100.00 | AA | | 776,946 | |
| | 5,400 | | Pennsylvania Public School Building Authority, Lease Revenue Bonds, School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 – AGM Insured (UB) | 12/16 at 100.00 | AA+ | | 5,370,300 | |
| | 8,000 | | Philadelphia, Pennsylvania, Airport Revenue Bonds, Series 2010A, 5.000%, 6/15/40 (WI/DD, Settling 11/15/10) | 6/20 at 100.00 | AA+ | | 8,196,160 | |
| | 2,500 | | Pittsburgh and Allegheny County Sports and Exhibition Authority, Pennsylvania, Hotel Room Excise Tax Revenue Bonds, Refunding Series 2010, 5.000%, 2/01/35 – AGC Insured | 8/20 at 100.00 | AA+ | | 2,561,900 | |
| | 2,000 | | Pittsburgh Public Parking Authority, Pennsylvania, Parking Revenue Bonds, Series 2005B, 5.000%, 12/01/23 – FGIC Insured | 12/15 at 100.00 | A | | 2,098,520 | |
| | 32,850 | | Total Pennsylvania | | | | 33,815,181 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Puerto Rico – 2.2% (1.4% of Total Investments) | | | | | |
| $ | 2,500 | | Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2005RR, 5.000%, 7/01/22 – FGIC Insured | 7/15 at 100.00 | A | $ | 2,608,700 | |
| | 25,000 | | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A, 0.000%, 8/01/42 – NPFG Insured | No Opt. Call | Aa2 | | 3,775,750 | |
| | 5,000 | | Puerto Rico, Highway Revenue Bonds, Highway and Transportation Authority, Series 2003AA, 5.500%, 7/01/16 – FGIC Insured | No Opt. Call | A2 | | 5,579,600 | |
| | 32,500 | | Total Puerto Rico | | | | 11,964,050 | |
| | | | South Carolina – 2.3% (1.5% of Total Investments) | | | | | |
| | 2,425 | | Charleston County School District, South Carolina, General Obligation Bonds, Series 2004A, 5.000%, 2/01/22 – AMBAC Insured | 2/14 at 100.00 | Aa1 | | 2,647,494 | |
| | 9,950 | | South Carolina Transportation Infrastructure Bank, Revenue Bonds, Series 2007A, 4.500%, 10/01/34 – SYNCORA GTY Insured | 10/16 at 100.00 | Aa3 | | 9,985,621 | |
| | 12,375 | | Total South Carolina | | | | 12,633,115 | |
| | | | Tennessee – 1.3% (0.8% of Total Investments) | | | | | |
| | | | Knox County Health, Educational and Housing Facilities Board, Tennessee, Hospital Revenue Refunding Bonds, Covenant Health, Series 2002A: | | | | | |
| | 7,500 | | 0.000%, 1/01/24 – AGM Insured | 1/13 at 52.75 | AA+ | | 3,609,225 | |
| | 5,000 | | 0.000%, 1/01/25 – AGM Insured | 1/13 at 49.71 | AA+ | | 2,263,300 | |
| | 2,750 | | 0.000%, 1/01/26 – AGM Insured | 1/13 at 46.78 | AA+ | | 1,166,935 | |
| | 15,250 | | Total Tennessee | | | | 7,039,460 | |
| | | | Texas – 16.7% (10.9% of Total Investments) | | | | | |
| | 3,135 | | Corpus Christi, Texas, Utility System Revenue Bonds, Series 2004, 5.250%, 7/15/20 – AGM Insured (UB) | 7/14 at 100.00 | AA+ | | 3,491,763 | |
| | 3,000 | | Dallas-Ft. Worth International Airport, Texas, Joint Revenue Refunding and Improvement Bonds, Series 2001A, 5.750%, 11/01/13 – NPFG Insured (Alternative Minimum Tax) | 11/11 at 100.00 | A+ | | 3,141,690 | |
| | 3,735 | | Grand Prairie Independent School District, Dallas County, Texas, General Obligation Bonds, Series 2003, 5.125%, 2/15/31 (Pre-refunded 2/15/13) – AGM Insured | 2/13 at 100.00 | AA+ (4) | | 4,114,999 | |
| | 4,700 | | Houston, Texas, First Lien Combined Utility System Revenue Bonds, Series 2004A, 5.250%, 5/15/24 – FGIC Insured | 5/14 at 100.00 | AA | | 5,079,290 | |
| | 4,500 | | Houston, Texas, General Obligation Public Improvement Bonds, Series 2001A, 5.000%, 3/01/22 – AGM Insured | 3/11 at 100.00 | AA+ | | 4,561,515 | |
| | 17,000 | | Houston, Texas, Junior Lien Water and Sewerage System Revenue Refunding Bonds, Series 2002A, 5.750%, 12/01/32 – AGM Insured (ETM) | No Opt. Call | AA+ (4) | | 21,999,870 | |
| | 4,685 | | Houston, Texas, Subordinate Lien Airport System Revenue Bonds, Series 2000A, 5.500%, 7/01/19 – AGM Insured (Alternative Minimum Tax) | 1/11 at 100.00 | AA+ | | 4,697,322 | |
| | 19,200 | | Jefferson County Health Facilities Development Corporation, Texas, FHA-Insured Mortgage Revenue Bonds, Baptist Hospital of Southeast Texas, Series 2001, 5.400%, 8/15/31 – AMBAC Insured | 8/11 at 100.00 | N/R | | 19,896,192 | |
| | 2,000 | | Laredo Independent School District Public Facilities Corporation, Texas, Lease Revenue Bonds, Series 2004A, 5.000%, 8/01/24 – AMBAC Insured | 8/11 at 100.00 | A | | 2,016,700 | |
| | 22,045 | | North Central Texas Health Facilities Development Corporation, Revenue Bonds, Children’s Medical Center of Dallas, Series 2002, 5.250%, 8/15/32 – AMBAC Insured | 8/12 at 101.00 | Aa3 | | 22,606,927 | |
| | 84,000 | | Total Texas | | | | 91,606,268 | |
Nuveen Investments 27
| | | Nuveen Insured Quality Municipal Fund, Inc. (continued) |
| NQI | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Utah – 0.8% (0.5% of Total Investments) | | | | | |
| $ | 3,615 | | Utah Transit Authority, Sales Tax Revenue Bonds, Tender Option Bond Trust R-11752-1, 12.492%, 6/15/27 – AGM Insured (IF) | 6/18 at 100.00 | AAA | $ | 4,133,825 | |
| | | | Washington – 12.7% (8.3% of Total Investments) | | | | | |
| | 10,730 | | Chelan County Public Utility District 1, Washington, Hydro Consolidated System Revenue Refunding Bonds, Series 2001C, 5.650%, 7/01/32 – NPFG Insured (Alternative Minimum Tax) (UB) | 7/11 at 101.00 | AA | | 10,845,669 | |
| | 8,000 | | King County, Washington, Sewer Revenue Bonds, Series 2007, 5.000%, 1/01/42 – AGM Insured | 7/17 at 100.00 | AA+ | | 8,380,480 | |
| | 1,665 | | King County, Washington, Sewer Revenue Bonds, Tender Option Bond Trust 3090, 13.061%, 7/01/32 – AGM Insured (IF) | 7/17 at 100.00 | AA+ | | 1,908,456 | |
| | 15,025 | | Seattle Housing Authority, Washington, GNMA Collateralized Mortgage Loan Low Income Housing Assistance Revenue Bonds, Park Place Project, Series 2000A, 7.000%, 5/20/42 | 11/11 at 105.00 | AA+ | | 15,997,869 | |
| | 4,455 | | Seattle Housing Authority, Washington, GNMA Collateralized Mortgage Loan Low Income Housing Assistance Revenue Bonds, RHF/Esperanza Apartments Project, Series 2000A, 6.125%, 3/20/42 (Alternative Minimum Tax) | 9/11 at 102.00 | AA+ | | 4,591,457 | |
| | 5,000 | | Seattle, Washington, Municipal Light and Power Revenue Bonds, Series 2000, 5.250%, 12/01/21 – AGM Insured | 12/10 at 100.00 | AA+ | | 5,022,150 | |
| | 10,000 | | Washington State, General Obligation Bonds, Series 2002A-R-03, 5.000%, 1/01/19 – NPFG Insured | 1/12 at 100.00 | AA+ | | 10,442,000 | |
| | 21,510 | | Washington State, Motor Vehicle Fuel Tax General Obligation Bonds, Series 2002-03C, 0.000%, 6/01/28 – NPFG Insured (UB) | No Opt. Call | AA+ | | 10,184,770 | |
| | 2,000 | | Washington, Certificates of Participation, Washington Convention and Trade Center, Series 1999, 5.250%, 7/01/14 – NPFG Insured | 1/11 at 100.00 | AA | | 2,006,860 | |
| | 78,385 | | Total Washington | | | | 69,379,711 | |
| | | | Wisconsin – 0.5% (0.4% of Total Investments) | | | | | |
| | 1,635 | | Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 5.000%, 11/01/26 (Pre-refunded 11/01/14) – AGM Insured | 11/14 at 100.00 | Aa2 (4) | | 1,899,134 | |
| | 1,000 | | Wisconsin Public Power Incorporated System, Power Supply System Revenue Bonds, Series 2005A, 5.000%, 7/01/30 – AMBAC Insured | 7/15 at 100.00 | A+ | | 1,027,160 | |
| | 2,635 | | Total Wisconsin | | | | 2,926,294 | |
| $ | 956,298 | | Total Long-Term Investments (cost $812,182,335) – 150.6% | | | | 824,651,012 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Short-Term Investments – 2.4% (1.6% of Total Investments) | | | | | |
| | | | Illinois – 1.3% (0.9% of Total Investments) | | | | | |
| $ | 7,000 | | Chicago, Illinois, General Obligation Bonds, Variable Rate Demand Obligations,Tender Option Bond Trust Series 26W, 0.290%, 1/01/37 (6) | 1/17 at 100.00 | A–1+ | $ | 7,000,000 | |
| | | | Texas – 1.1% (0.7% of Total Investments) | | | | | |
| | 5,990 | | Houston, Texas, Subordinate Lien Airport System Revenue Bonds, Variable Rate Demand Obligations, Tender Option Bond Trust 3181, 0.290%, 1/01/12 (6) | No Opt. Call | A–1 | | 5,990,000 | |
| $ | 12,990 | | Total Short-Term Investments (cost $12,990,000) | | | | 12,990,000 | |
| | | | Total Investments (cost $825,172,335) – 153.0% | | | | 837,641,012 | |
| | | | Floating Rate Obligations – (10.8)% | | | | (59,405,000 | ) |
| | | | Other Assets Less Liabilities – 1.5% | | | | 8,562,357 | |
| | | | Auction Rate Preferred Shares, at Liquidation Value – (43.7)% (7) | | | | (239,200,000 | ) |
| | | | Net Assets Applicable to Common Shares – 100% | | | $ | 547,598,369 | |
| | | The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. |
| (1) | | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. |
| (2) | | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| (4) | | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. |
| (5) | | The Fund’s Adviser has concluded this issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records. |
| (6) | | Investment has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. The rate disclosed is that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. |
| (7) | | Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments is 28.6%. |
| N/R | | Not rated. |
| WI/DD | | Purchased on a when-issued or delayed delivery basis. |
| (ETM) | | Escrowed to maturity. |
| (IF) | | Inverse floating rate investment. |
| (UB) | | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information. |
See accompanying notes to financial statements.
Nuveen Investments 29
| | | Nuveen Insured Municipal Opportunity Fund, Inc. |
| NIO | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Alabama – 4.9% (3.2% of Total Investments) | | | | | |
| $ | 10,500 | | Birmingham Waterworks and Sewerage Board, Alabama, Water and Sewerage Revenue Bonds, Series 2007A, 4.500%, 1/01/43 – AMBAC Insured (UB) | 1/17 at 100.00 | AA+ | $ | 10,367,385 | |
| | 11,175 | | Hoover Board of Education, Alabama, Capital Outlay Tax Anticipation Warrants, Series 2001, 5.250%, 2/15/22 – NPFG Insured | 2/11 at 100.00 | AA | | 11,340,167 | |
| | 2,500 | | Jefferson County, Alabama, Sewer Revenue Capital Improvement Warrants, Series 2002B, 5.125%, 2/01/42 (Pre-refunded 8/01/12) – FGIC Insured | 8/12 at 100.00 | AAA | | 2,698,050 | |
| | | | Jefferson County, Alabama, Sewer Revenue Capital Improvement Warrants, Series 2002D: | | | | | |
| | 425 | | 5.000%, 2/01/38 (Pre-refunded 8/01/12) – FGIC Insured | 8/12 at 100.00 | AAA | | 455,570 | |
| | 14,800 | | 5.000%, 2/01/42 (Pre-refunded 8/01/12) – FGIC Insured | 8/12 at 100.00 | AAA | | 15,940,192 | |
| | 18,760 | | Jefferson County, Alabama, Sewer Revenue Capitol Improvement Warrants, Series 2001A, 5.000%, 2/01/41 (Pre-refunded 2/01/11) – FGIC Insured | 2/11 at 101.00 | AAA | | 19,121,318 | |
| | 10,195 | | Jefferson County, Alabama, Sewer Revenue Refunding Warrants, Series 1997A, 5.375%, 2/01/27 – FGIC Insured | 1/11 at 100.00 | Caa3 | | 4,099,715 | |
| | 5,240 | | Jefferson County, Alabama, Sewer Revenue Refunding Warrants, Series 2003B, 5.000%, 2/01/41 (Pre-refunded 2/01/11) – FGIC Insured | 2/11 at 101.00 | AAA | | 5,355,385 | |
| | 73,595 | | Total Alabama | | | | 69,377,782 | |
| | | | Alaska – 0.1% (0.1% of Total Investments) | | | | | |
| | 1,630 | | Alaska Housing Finance Corporation, Collateralized Veterans Mortgage Program Bonds, First Series 1999A-1, 6.150%, 6/01/39 | 12/10 at 100.00 | AAA | | 1,631,809 | |
| | | | Arizona – 2.1% (1.4% of Total Investments) | | | | | |
| | | | Arizona State University, Certificates of Participation, Resh Infrastructure Projects, Series 2005A: | | | | | |
| | 2,000 | | 5.000%, 9/01/25 – AMBAC Insured | 3/15 at 100.00 | AA– | | 2,083,700 | |
| | 2,000 | | 5.000%, 9/01/27 – AMBAC Insured | 3/15 at 100.00 | AA– | | 2,067,560 | |
| | 1,000 | | Arizona State University, System Revenue Bonds, Series 2005, 5.000%, 7/01/27 – AMBAC Insured | 7/15 at 100.00 | Aa3 | | 1,021,640 | |
| | 3,000 | | Arizona State, Certificates of Participation, Department of Administration Series 2010B, 5.000%, 10/01/29 – AGC Insured | 4/20 at 100.00 | AA+ | | 3,111,720 | |
| | 1,000 | | Maricopa County Union High School District 210, Phoenix, Arizona, General Obligation Bonds, Series 2004A, 5.000%, 7/01/22 (Pre-refunded 7/01/14) – AGM Insured | 7/14 at 100.00 | AA+ (4) | | 1,152,660 | |
| | 5,200 | | Mesa, Arizona, Utility System Revenue Bonds, Reset Option Longs, Series 11033, 14.520%, 7/01/26 – AGM Insured (IF) | 7/17 at 100.00 | AA+ | | 5,099,744 | |
| | 1,150 | | Phoenix Civic Improvement Corporation, Arizona, Junior Lien Wastewater System Revenue Bonds, Series 2004, 5.000%, 7/01/27 – NPFG Insured | 7/14 at 100.00 | AA+ | | 1,201,037 | |
| | 13,490 | | Phoenix Civic Improvement Corporation, Arizona, Junior Lien Water System Revenue Bonds, Series 2005, 4.750%, 7/01/25 – NPFG Insured | 7/15 at 100.00 | AAA | | 14,284,966 | |
| | 28,840 | | Total Arizona | | | | 30,023,027 | |
| | | | Arkansas – 0.2% (0.1% of Total Investments) | | | | | |
| | 2,660 | | Arkansas State University, Student Fee Revenue Bonds, Beebe Campus, Series 2006, 5.000%, 9/01/35 – AMBAC Insured | 9/15 at 100.00 | A1 | | 2,738,071 | |
| | | | California – 25.2% (16.3% of Total Investments) | | | | | |
| | 5,600 | | Alameda Corridor Transportation Authority, California, Subordinate Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/20 – AMBAC Insured | No Opt. Call | A– | | 3,169,992 | |
| | 10,000 | | California Department of Veterans Affairs, Home Purchase Revenue Bonds, Series 2002A, 5.300%, 12/01/21 – AMBAC Insured | 6/12 at 101.00 | AA | | 10,285,800 | |
| | | | California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A: | | | | | |
| | 30,000 | | 5.375%, 5/01/17 (Pre-refunded 5/01/12) – SYNCORA GTY Insured | 5/12 at 101.00 | Aaa | | 32,532,300 | |
| | 20,000 | | 5.375%, 5/01/18 (Pre-refunded 5/01/12) – AMBAC Insured | 5/12 at 101.00 | Aaa | | 21,688,200 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | California (continued) | | | | | |
| | | | California Department of Water Resources, Water System Revenue Bonds, Central Valley Project, Series 2005AC: | | | | | |
| $ | 30 | | 5.000%, 12/01/24 (Pre-refunded 12/01/14) – NPFG Insured | 12/14 at 100.00 | AAA | $ | 34,973 | |
| | 25 | | 5.000%, 12/01/27 (Pre-refunded 12/01/14) – NPFG Insured | 12/14 at 100.00 | AAA | | 29,144 | |
| | | | California Department of Water Resources, Water System Revenue Bonds, Central Valley Project, Series 2005AC: | | | | | |
| | 3,670 | | 5.000%, 12/01/24 – NPFG Insured (UB) | 12/14 at 100.00 | AAA | | 4,108,895 | |
| | 2,795 | | 5.000%, 12/01/27 – NPFG Insured (UB) | 12/14 at 100.00 | AAA | | 3,079,447 | |
| | 10,150 | | California, General Obligation Bonds, Series 2004, 5.000%, 6/01/31 – AMBAC Insured | 12/14 at 100.00 | A1 | | 10,263,579 | |
| | 3,500 | | Coachella Valley Unified School District, Riverside County, California, General Obligation Bonds, Series 2005A, 5.000%, 8/01/26 – FGIC Insured | 8/15 at 100.00 | A1 | | 3,589,005 | |
| | 20,000 | | Cucamonga County Water District, San Bernardino County, California, Certificates of Participation, Water Shares Purchase, Series 2001, 5.125%, 9/01/35 – FGIC Insured | 9/11 at 101.00 | AA– | | 20,145,000 | |
| | 5,750 | | East Bay Municipal Utility District, Alameda and Contra Costa Counties, California, Water System Subordinated Revenue Bonds, Series 2005A, 5.000%, 6/01/27 – NPFG Insured | 6/15 at 100.00 | AAA | | 6,202,813 | |
| | 10,000 | | Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/38 – FGIC Insured | 6/15 at 100.00 | A2 | | 9,595,100 | |
| | 1,520 | | Hayward Redevelopment Agency, California, Downtown Redevelopment Project Tax Allocation Bonds, Series 2006, 5.000%, 3/01/36 – SYNCORA GTY Insured | 3/16 at 100.00 | A– | | 1,398,172 | |
| | 5,600 | | Kern Community College District, California, General Obligation Bonds, Series 2006, 0.000%, 11/01/24 – AGM Insured | No Opt. Call | AA+ | | 2,796,472 | |
| | 5,000 | | Long Beach Bond Financing Authority, California, Lease Revenue Refunding Bonds, Long Beach Aquarium of the South Pacific, Series 2001, 5.250%, 11/01/30 – AMBAC Insured | 11/11 at 101.00 | BBB | | 4,828,900 | |
| | 2,740 | | Los Angeles Harbors Department, California, Revenue Bonds, Series 2006A, 5.000%, 8/01/22 – FGIC Insured (Alternative Minimum Tax) | 8/16 at 102.00 | AA | | 2,903,742 | |
| | 20,000 | | Los Angeles Unified School District, California, General Obligation Bonds, Series 2003A, 5.000%, 7/01/21 – AGM Insured | 7/13 at 100.00 | AA+ | | 21,588,400 | |
| | 3,000 | | Los Angeles Unified School District, California, General Obligation Bonds, Series 2006F, 5.000%, 7/01/24 – FGIC Insured | 7/16 at 100.00 | Aa2 | | 3,188,280 | |
| | 5,200 | | Palomar Pomerado Health, California, General Obligation Bonds, Series 2009A, 0.000%, 8/01/38 – AGC Insured | 8/29 at 100.00 | AA+ | | 3,425,032 | |
| | 5,515 | | Port of Oakland, California, Revenue Bonds, Series 2002L, 5.000%,
11/01/22 – FGIC Insured (Alternative Minimum Tax) | 11/12 at 100.00 | A | | 5,562,594 | |
| | 690 | | Port of Oakland, California, Revenue Bonds, Series 2002L, 5.000%, 11/01/22 (Pre-refunded 11/01/12) – FGIC Insured | 11/12 at 100.00 | A (4) | | 752,438 | |
| | | | Poway Redevelopment Agency, California, Tax Allocation Bonds, Paguay Redevelopment Project, Series 2001: | | | | | |
| | 15,000 | | 5.200%, 6/15/30 – AMBAC Insured | 12/11 at 101.00 | N/R | | 14,612,100 | |
| | 5,000 | | 5.125%, 6/15/33 – AMBAC Insured | 12/11 at 101.00 | N/R | | 4,675,800 | |
| | 2,035 | | Redding, California, Electric System Revenue Certificates of Participation, Series 2005, 5.000%, 6/01/30 – FGIC Insured | 6/15 at 100.00 | A | | 1,971,895 | |
| | 6,000 | | Redlands Unified School District, San Bernardino County, California, General Obligation Bonds, Series 2003, 5.000%, 7/01/26 – AGM Insured | 7/13 at 100.00 | AA+ | | 6,174,060 | |
| | 2,970 | | Riverside Community College District, California, General Obligation Bonds, Series 2005, 5.000%, 8/01/22 – AGM Insured | 8/15 at 100.00 | AA+ | | 3,250,309 | |
| | 2,500 | | Sacramento County Sanitation District Financing Authority, California, Revenue Bonds, Series 2005B, 4.750%, 12/01/21 – FGIC Insured | 12/15 at 100.00 | AA | | 2,701,550 | |
| | 13,710 | | San Francisco Airports Commission, California, Revenue Refunding Bonds, San Francisco International Airport, Second Series 2001, Issue 27A, 5.250%, 5/01/26 – NPFG Insured (Alternative Minimum Tax) | 5/11 at 100.00 | A1 | | 13,771,284 | |
| | 1,220 | | San Francisco Bay Area Rapid Transit District, California, Sales Tax Revenue Bonds, Refunding Series 2005A, 5.000%, 7/01/22 – NPFG Insured | 7/15 at 100.00 | AA+ | | 1,340,499 | |
| | 3,030 | | San Francisco Bay Area Rapid Transit District, California, Sales Tax Revenue Bonds, Series 2001, 5.125%, 7/01/36 – AMBAC Insured | 7/11 at 100.00 | AA+ | | 3,091,994 | |
Nuveen Investments 31
| | | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) |
| NIO | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | California (continued) | | | | | |
| $ | 8,470 | | San Francisco Bay Area Rapid Transit District, California, Sales Tax Revenue Bonds, Series 2001, 5.125%, 7/01/36 (Pre-refunded 7/01/11) – AMBAC Insured | 7/11 at 100.00 | AA+ (4) | $ | 8,742,141 | |
| | 2,105 | | San Francisco Unified School District, California, General Obligation Bonds, Series 2007A, 3.000%, 6/15/27 – AGM Insured | 6/17 at 100.00 | AA+ | | 1,828,929 | |
| | 66,685 | | San Joaquin Hills Transportation Corridor Agency, Orange County, California, Senior Lien Toll Road Revenue Bonds, Series 1993, 0.000%, 1/01/21 (ETM) | No Opt. Call | AAA | | 49,555,624 | |
| | | | San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue Refunding Bonds, Series 1997A: | | | | | |
| | 31,615 | | 5.250%, 1/15/30 – NPFG Insured | 1/11 at 100.00 | A | | 29,756,670 | |
| | 21,500 | | 0.000%, 1/15/32 – NPFG Insured | No Opt. Call | A | | 4,207,550 | |
| | 19,595 | | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30 – NPFG Insured | 8/17 at 100.00 | A | | 17,812,835 | |
| | 11,250 | | Santa Ana Financing Authority, California, Lease Revenue Bonds, Police Administration and Housing Facility, Series 1994A, 6.250%, 7/01/24 – NPFG Insured | No Opt. Call | A | | 12,515,063 | |
| | 6,785 | | Santa Clara Valley Water District, California, Water Revenue Bonds, Series 2006A, 3.750%, 6/01/25 – AGM Insured | 6/16 at 100.00 | AA+ | | 6,827,406 | |
| | 5,000 | | Walnut Energy Center Authority, California, Electric Revenue Bonds, Turlock Irrigation District, Series 2004A, 5.000%, 1/01/34 – AMBAC Insured | 1/14 at 100.00 | A+ | | 5,144,300 | |
| | 395,255 | | Total California | | | | 359,148,287 | |
| | | | Colorado – 3.2% (2.1% of Total Investments) | | | | | |
| | 1,080 | | Arkansas River Power Authority, Colorado, Power Revenue Bonds, Series 2006, 5.250%, 10/01/40 – SYNCORA GTY Insured | 10/16 at 100.00 | BBB | | 1,047,470 | |
| | 1,900 | | Aspen, Colorado, Sales Tax Revenue Bonds, Parks and Open Space, Series 2005B, 5.250%, 11/01/24 – AGM Insured | 11/15 at 100.00 | AA+ | | 2,060,531 | |
| | 1,000 | | Colorado Department of Transportation, Certificates of Participation, Series 2004, 5.000%, 6/15/25 – NPFG Insured | 6/14 at 100.00 | AA– | | 1,049,430 | |
| | 4,950 | | Denver Convention Center Hotel Authority, Colorado, Senior Revenue Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/33 (Pre-refunded 12/01/13) – SYNCORA GTY Insured | 12/13 at 100.00 | N/R (4) | | 5,524,745 | |
| | 1,740 | | Douglas County School District RE1, Douglas and Elbert Counties, Colorado, General Obligation Bonds, Series 2005B, 5.000%, 12/15/28 – AGM Insured | 12/14 at 100.00 | Aa1 | | 1,841,146 | |
| | 35,995 | | E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 1997B, 0.000%, 9/01/23 – NPFG Insured | No Opt. Call | A | | 17,083,227 | |
| | 10,000 | | E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004A, 0.000%, 9/01/27 – NPFG Insured | No Opt. Call | A | | 3,456,100 | |
| | 4,520 | | Jefferson County School District R1, Colorado, General Obligation Bonds, Series 2004, 5.000%, 12/15/24 (Pre-refunded 12/15/14) – AGM Insured (UB) | 12/14 at 100.00 | AA+ (4) | | 5,252,466 | |
| | 4,335 | | Poudre Tech Metro District, Colorado, Unlimited Property Tax Supported Revenue Bonds, Refunding & Improvement Series 2010A, 5.000%, 12/01/39 – AGM Insured | 12/20 at 100.00 | AA+ | | 4,403,493 | |
| | 2,500 | | Summit County School District RE-1, Summit, Colorado, General Obligation Bonds, Series 2004B, 5.000%, 12/01/24 – FGIC Insured | 12/14 at 100.00 | Aa2 | | 2,672,700 | |
| | 1,000 | | University of Colorado, Enterprise System Revenue Bonds, Series 2005, 5.000%, 6/01/30 – FGIC Insured | 6/15 at 100.00 | Aa2 | | 1,064,580 | |
| | 69,020 | | Total Colorado | | | | 45,455,888 | |
| | | | District of Columbia – 1.0% (0.6% of Total Investments) | | | | | |
| | | | District of Columbia Water and Sewerage Authority, Subordinate Lien Public Utility Revenue Bonds, Series 2003: | | | | | |
| | 5,000 | | 5.125%, 10/01/24 – FGIC Insured | 10/13 at 100.00 | AA– | | 5,465,900 | |
| | 5,000 | | 5.125%, 10/01/25 – FGIC Insured | 10/13 at 100.00 | AA– | | 5,443,650 | |
| | 2,670 | | Washington Convention Center Authority, District of Columbia, Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals 1606, 11.401%, 10/01/30 – AMBAC Insured (IF) | 10/16 at 100.00 | AA+ | | 2,784,143 | |
| | 12,670 | | Total District of Columbia | | | | 13,693,693 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Florida – 24.9% (16.1% of Total Investments) | | | | | |
| $ | 1,250 | | Bay County, Florida, Water System Revenue Bonds, Series 2005, 5.000%, 9/01/24 – AMBAC Insured | 9/15 at 100.00 | A1 | $ | 1,313,975 | |
| | 975 | | Broward County Housing Finance Authority, Florida, GNMA Collateralized Multifamily Housing Revenue Refunding Bonds, Pompano Oaks Apartments, Series 1997, 6.000%, 12/01/27 (Alternative Minimum Tax) | 12/10 at 100.00 | Aaa | | 976,277 | |
| | 3,820 | | Broward County School Board, Florida, Certificates of Participation, Series 2003, 5.250%, 7/01/19 – NPFG Insured | 7/13 at 100.00 | Aa3 | | 4,143,439 | |
| | 2,150 | | Broward County, Florida, Airport System Revenue Bonds, Series 2004L, 5.000%, 10/01/23 – AMBAC Insured | 10/14 at 100.00 | A+ | | 2,260,725 | |
| | 4,500 | | Broward County, Florida, Water and Sewer Utility Revenue Bonds, Series 2003, 5.000%, 10/01/24 – NPFG Insured | 10/13 at 100.00 | AA | | 4,772,970 | |
| | 190 | | City of Gulf Breeze, Florida, Local Government Loan Program Bonds, Series 1985-FG&H, 5.000%, 12/01/20 | 1/11 at 100.00 | N/R | | 190,401 | |
| | | | Clay County, Florida, Utility System Revenue Bonds, Series 2007: | | | | | |
| | 5,110 | | 5.000%, 11/01/27 – SYNCORA GTY Insured (UB) | 11/17 at 100.00 | AAA | | 5,443,632 | |
| | 12,585 | | 5.000%, 11/01/32 – SYNCORA GTY Insured (UB) | 11/17 at 100.00 | AAA | | 13,157,114 | |
| | | | Collier County Housing Finance Authority, Florida, Multifamily Housing Revenue Bonds, Saxon Manor Isles Project, Series 1998B: | | | | | |
| | 1,260 | | 5.350%, 9/01/18 – AGM Insured (Alternative Minimum Tax) | 3/11 at 100.00 | AAA | | 1,261,462 | |
| | 1,000 | | 5.400%, 9/01/23 – AGM Insured (Alternative Minimum Tax) | 3/11 at 100.00 | AAA | | 1,000,830 | |
| | | | 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 – AGM Insured (Alternative Minimum Tax) | 3/11 at 100.00 | AAA | | 1,041,206 | |
| | 1,400 | | 5.400%, 9/01/23 – AGM Insured (Alternative Minimum Tax) | 3/11 at 100.00 | AAA | | 1,401,162 | |
| | 1,500 | | Collier County, Florida, Capital Improvement Revenue Bonds, Series 2005, 5.000%, 10/01/23 – NPFG Insured | 10/14 at 100.00 | AA– | | 1,581,750 | |
| | 3,000 | | Collier County, Florida, Gas Tax Revenue Bonds, Series 2005, 5.000%, 6/01/22 – AMBAC Insured | 6/15 at 100.00 | A1 | | 3,143,760 | |
| | | | Dade County Housing Finance Authority, Florida, Multifamily Mortgage Revenue Bonds, Siesta Pointe Apartments Project, Series 1997A: | | | | | |
| | 1,230 | | 5.650%, 9/01/17 – AGM Insured (Alternative Minimum Tax) | 3/11 at 100.00 | AAA | | 1,231,882 | |
| | 1,890 | | 5.750%, 9/01/29 – AGM Insured (Alternative Minimum Tax) | 3/11 at 100.00 | AAA | | 1,891,531 | |
| | 1,100 | | Dade County, Florida, Seaport Revenue Refunding Bonds, Series 1995, 5.750%, 10/01/15 – NPFG Insured | 4/11 at 100.00 | A | | 1,104,499 | |
| | | | Davie, Florida, Water and Sewerage Revenue Refunding and Improvement Bonds, Series 2003: | | | | | |
| | 910 | | 5.250%, 10/01/17 – AMBAC Insured | 10/13 at 100.00 | N/R | | 1,000,882 | |
| | 475 | | 5.250%, 10/01/18 – AMBAC Insured | 10/13 at 100.00 | N/R | | 510,193 | |
| | | | Deltona, Florida, Utility Systems Water and Sewer Revenue Bonds, Series 2003: | | | | | |
| | 1,250 | | 5.250%, 10/01/22 – NPFG Insured | 10/13 at 100.00 | A1 | | 1,300,000 | |
| | 1,095 | | 5.000%, 10/01/23 – NPFG Insured | 10/13 at 100.00 | A1 | | 1,137,902 | |
| | 1,225 | | 5.000%, 10/01/24 – NPFG Insured | 10/13 at 100.00 | A1 | | 1,269,210 | |
| | 1,555 | | DeSoto County, Florida, Capital Improvement Revenue Bonds, Series 2002, 5.250%, 10/01/20 – NPFG Insured | 4/12 at 101.00 | A1 | | 1,644,521 | |
| | 2,500 | | Escambia County School Board, Florida, Certificates of Participation, Series 2004, 5.000%, 2/01/22 – NPFG Insured | 2/15 at 100.00 | A | | 2,584,925 | |
| | 2,500 | | Flagler County School Board, Florida, Certificates of Participation, Master Lease Revenue Program, Series 2005A, 5.000%, 8/01/30 – AGM Insured | 8/15 at 100.00 | AA+ | | 2,568,425 | |
| | 1,200 | | Flagler County, Florida, Capital Improvement Revenue Bonds, Series 2005, 5.000%, 10/01/30 – NPFG Insured | 10/15 at 100.00 | A | | 1,231,776 | |
| | 3,945 | | Florida Governmental Utility Authority, Utility System Revenue Bonds, Citrus Project, Series 2003, 5.000%, 10/01/23 (Pre-refunded 10/01/13) – AMBAC Insured | 10/13 at 100.00 | N/R (4) | | 4,437,849 | |
| | 1,000 | | Florida Governmental Utility Authority, Utility System Revenue Bonds, Golden Gate Project, Series 1999, 5.000%, 7/01/29 – AMBAC Insured | 1/11 at 100.50 | N/R | | 972,140 | |
| | 2,630 | | Florida Housing Finance Corporation, Homeowner Mortgage Revenue Bonds, Series 2000-4, 0.000%, 7/01/30 – AGM Insured (Alternative Minimum Tax) | 1/11 at 26.43 | Aa1 | | 743,264 | |
Nuveen Investments 33
| | | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) |
| NIO | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Florida (continued) | | | | | |
| | | | Florida Municipal Loan Council, Revenue Bonds, Series 2000B: | | | | | |
| $ | 3,365 | | 5.375%, 11/01/25 – NPFG Insured | 11/10 at 101.00 | A | $ | 3,402,251 | |
| | 3,345 | | 5.375%, 11/01/30 – NPFG Insured | 11/10 at 101.00 | A | | 3,371,158 | |
| | 1,000 | | Florida Municipal Loan Council, Revenue Bonds, Series 2001A, 5.250%, 11/01/18 – NPFG Insured | 11/11 at 101.00 | A | | 1,034,100 | |
| | 2,230 | | Florida Ports Financing Commission, Revenue Bonds, State Transportation Trust Fund – Intermodal Program, Series 1999, 5.500%, 10/01/23 – NPFG Insured (Alternative Minimum Tax) | 4/11 at 100.50 | AA+ | | 2,242,889 | |
| | 940 | | Florida State Board of Education, Full Faith and Credit, Public Education Capital Outlay Bonds, Series 2001C, 5.125%, 6/01/29 – FGIC Insured | 6/11 at 101.00 | AAA | | 975,917 | |
| | 2,000 | | Greater Orlando Aviation Authority, Florida, Airport Facilities Revenue Refunding Bonds, Series 2003A, 5.000%, 10/01/17 – AGM Insured | 10/13 at 100.00 | AA+ | | 2,183,160 | |
| | 5,200 | | Gulf Breeze, Florida, Local Government Loan Program, Remarketed 6-1-2001, Series 1985E, 4.750%, 12/01/20 (Mandatory put 12/01/11) – FGIC Insured | 12/11 at 101.00 | BBB | | 5,250,180 | |
| | 380 | | Gulf Breeze, Florida, Local Government Loan Program, Remarketed 6-3-1996, Series 1985B, 5.900%, 12/01/15 – FGIC Insured | 1/11 at 100.00 | BBB | | 381,235 | |
| | 360 | | Gulf Breeze, Florida, Local Government Loan Program, Remarketed 6-3-1996, Series 1985C, 5.900%, 12/01/15 – FGIC Insured | 12/10 at 100.00 | N/R | | 360,850 | |
| | 1,500 | | Gulf Breeze, Florida, Local Government Loan Program, Remarketed 7-3-2000, Series 1985E, 5.750%, 12/01/20 (Mandatory put 12/01/19) – FGIC Insured | 12/10 at 101.00 | N/R | | 1,516,920 | |
| | 1,915 | | Halifax Hospital Medical Center, Florida, Revenue Bonds, Series 2006, 5.500%, 6/01/38 – AGM Insured | 6/18 at 100.00 | AA+ | | 1,981,489 | |
| | 2,500 | | Hillsborough County Industrial Development Authority, Florida, Industrial Development Revenue Bonds, University Community Hospital, Series 1994, 6.500%, 8/15/19 – NPFG Insured | No Opt. Call | A | | 3,121,800 | |
| | 1,000 | | Hillsborough County School Board, Florida, Certificates of Participation, Master Lease Program, Series 2005A, 5.000%, 7/01/26 – NPFG Insured | 7/15 at 100.00 | Aa2 | | 1,043,480 | |
| | 6,000 | | Hillsborough County School Board, Florida, Certificates of Participation, Series 2003, 5.000%, 7/01/29 – NPFG Insured | 7/13 at 100.00 | Aa2 | | 6,115,200 | |
| | 2,000 | | Hillsborough County, Florida, Community Investment Tax Revenue Bonds, Series 2004, 5.000%, 5/01/23 – AMBAC Insured | 11/13 at 101.00 | AA+ | | 2,152,200 | |
| | 1,000 | | Hillsborough County, Florida, Revenue Refunding Bonds, Tampa Bay Arena, Series 2005, 5.000%, 10/01/25 – FGIC Insured | 10/15 at 100.00 | AA+ | | 1,057,430 | |
| | 2,595 | | Indian River County School Board, Florida, Certificates of Participation, Series 2005, 5.000%, 7/01/22 – NPFG Insured | 7/15 at 100.00 | A+ | | 2,722,492 | |
| | | | Indian Trace Development District, Florida, Water Management Special Benefit Assessment Bonds, Series 2005: | | | | | |
| | 1,645 | | 5.000%, 5/01/25 – NPFG Insured | 5/15 at 102.00 | Baa1 | | 1,594,663 | |
| | 1,830 | | 5.000%, 5/01/27 – NPFG Insured | 5/15 at 102.00 | Baa1 | | 1,736,322 | |
| | 4,425 | | Jacksonville Economic Development Commission, Florida, Healthcare Facilities Revenue Bonds, Mayo Clinic, Series 2001C, 5.500%, 11/15/36 – NPFG Insured | 11/12 at 100.00 | Aa2 | | 4,523,633 | |
| | 1,480 | | Jacksonville, Florida, Better Jacksonville Sales Tax Revenue Bonds, Series 2003, 5.250%, 10/01/20 – NPFG Insured | 10/13 at 100.00 | Aa2 | | 1,572,678 | |
| | 3,110 | | Jacksonville, Florida, GNMA Collateralized Housing Revenue Refunding Bonds, Windermere Manor Apartments, Series 1993A, 5.875%, 3/20/28 | 3/11 at 100.00 | N/R | | 3,113,825 | |
| | 1,500 | | JEA, Florida, Water and Sewerage System Revenue Bonds, Crossover Refunding Series 2007B, 5.000%, 10/01/24 – NPFG Insured | 10/14 at 100.00 | Aa2 | | 1,581,810 | |
| | 1,000 | | JEA, Florida, Water and Sewerage System Revenue Bonds, Series 2004A, 5.000%, 10/01/14 – FGIC Insured | 10/13 at 100.00 | Aa2 | | 1,103,380 | |
| | 1,450 | | Jupiter, Florida, Water Revenue Bonds, Series 2003, 5.000%, 10/01/22 – AMBAC Insured | 10/13 at 100.00 | AA+ | | 1,550,703 | |
| | | | Lakeland, Florida, Utility Tax Revenue Bonds, Series 2003B: | | | | | |
| | 1,730 | | 5.000%, 10/01/18 – AMBAC Insured | 10/12 at 100.00 | N/R | | 1,772,921 | |
| | 2,000 | | 5.000%, 10/01/19 – AMBAC Insured | 10/12 at 100.00 | N/R | | 2,041,780 | |
| | 1,230 | | Lee County, Florida, Local Option Gas Tax Revenue Bonds, Series 2004, 5.000%, 10/01/20 – FGIC Insured | 10/14 at 100.00 | A2 | | 1,285,559 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Florida (continued) | | | | | |
| $ | 1,505 | | Lee County, Florida, Transportation Facilities Revenue Bonds, Series 2004B, 5.000%, 10/01/21 – AMBAC Insured | 10/14 at 100.00 | A– | $ | 1,581,620 | |
| | 1,000 | | Lee Memorial Health System, Florida, Hospital Revenue Bonds, Series 2007A, 5.000%, 4/01/32 – NPFG Insured | 4/17 at 100.00 | A | | 989,590 | |
| | 3,000 | | Leesburg, Florida, Utility Revenue Bonds, Series 2007, 5.000%, 10/01/37 – NPFG Insured | 10/17 at 100.00 | Aa3 | | 3,064,980 | |
| | 2,000 | | Manatee County, Florida, Public Utilities Revenue Bonds, Series 2003, 5.125%, 10/01/20 – NPFG Insured | 10/13 at 100.00 | Aa2 | | 2,188,460 | |
| | | | Marco Island, Florida, Water Utility System Revenue Bonds, Series 2003: | | | | | |
| | 1,350 | | 5.250%, 10/01/17 – NPFG Insured | 10/13 at 100.00 | Aa3 | | 1,502,820 | |
| | 1,000 | | 5.250%, 10/01/18 – NPFG Insured | 10/13 at 100.00 | Aa3 | | 1,097,770 | |
| | 2,000 | | 5.000%, 10/01/27 – NPFG Insured | 10/13 at 100.00 | Aa3 | | 2,048,480 | |
| | 1,425 | | Miami-Dade County Housing Finance Authority, Florida, Multifamily Mortgage Revenue Bonds, Country Club Villas II Project, Series 2001-1A, 5.750%, 7/01/27 – AGM Insured (Alternative Minimum Tax) | 6/11 at 100.00 | AA+ | | 1,435,816 | |
| | 2,200 | | Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2002A, 5.125%, 10/01/35 – AGM Insured (Alternative Minimum Tax) | 10/12 at 100.00 | AA+ | | 2,206,292 | |
| | | | Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2002: | | | | | |
| | 5,615 | | 5.750%, 10/01/19 – FGIC Insured (Alternative Minimum Tax) | 10/12 at 100.00 | A | | 5,887,215 | |
| | 35,920 | | 5.375%, 10/01/32 – FGIC Insured (Alternative Minimum Tax) | 10/12 at 100.00 | A | | 36,126,540 | |
| | 12,930 | | Miami-Dade County, Florida, Public Facilities Revenue Bonds, Jackson Health System, Series 2005A, 5.000%, 6/01/32 – NPFG Insured | 12/15 at 100.00 | Aa3 | | 12,966,204 | |
| | 5,320 | | Miami-Dade County, Florida, Public Facilities Revenue Bonds, Jackson Health System, Series 2005B, 5.000%, 6/01/25 – NPFG Insured | 6/15 at 100.00 | Aa3 | | 5,387,617 | |
| | 18,000 | | Miami-Dade County, Florida, Subordinate Special Obligation Bonds, Series 1997A, 0.000%, 10/01/21 – NPFG Insured | 1/11 at 57.14 | A | | 9,892,620 | |
| | 3,000 | | Miami-Dade County, Florida, Transit System Sales Surtax Revenue Bonds, Series 2008, 5.000%, 7/01/35 – AGM Insured | 7/18 at 100.00 | AA+ | | 3,054,300 | |
| | 2,000 | | Miami-Dade County, Florida, Water and Sewer System Revenue Bonds, Refunding Series 2008B, 5.250%, 10/01/22 – AGM Insured | No Opt. Call | AA+ | | 2,356,900 | |
| | | | Northern Palm Beach County Improvement District, Florida, Revenue Bonds, Water Control and Improvement Development Unit 9B, Series 2005: | | | | | |
| | 1,290 | | 5.000%, 8/01/23 – NPFG Insured | 8/15 at 102.00 | A | | 1,382,183 | |
| | 2,145 | | 5.000%, 8/01/29 – NPFG Insured | 8/15 at 102.00 | A | | 2,235,905 | |
| | 2,000 | | Okaloosa County, Florida, Water and Sewer Revenue Bonds, Series 2006, 5.000%, 7/01/36 – AGM Insured | 7/16 at 100.00 | AA+ | | 2,059,040 | |
| | 1,000 | | Orange County School Board, Florida, Certificates of Participation, Series 2007A, 5.000%, 8/01/27 – FGIC Insured | 8/17 at 100.00 | AA– | | 1,046,570 | |
| | 3,180 | | Orange County, Florida, Sales Tax Revenue Bonds, Series 2002B, 5.125%, 1/01/19 – FGIC Insured | 1/13 at 100.00 | AA | | 3,404,890 | |
| | 2,500 | | Orange County, Florida, Tourist Development Tax Revenue Bonds, Series 2006, 5.000%, 10/01/31 – SYNCORA GTY Insured | 10/16 at 100.00 | A+ | | 2,548,000 | |
| | | | Osceola County, Florida, Transportation Revenue Bonds, Osceola Parkway, Series 2004: | | | | | |
| | 2,500 | | 5.000%, 4/01/21 – NPFG Insured | 4/14 at 100.00 | Aa3 | | 2,617,425 | |
| | 7,820 | | 5.000%, 4/01/23 – NPFG Insured | 4/14 at 100.00 | Aa3 | | 8,134,833 | |
| | 1,750 | | Palm Bay, Florida, Utility System Revenue Bonds, Palm Bay Utility Corporation, Series 2003, 5.000%, 10/01/20 – NPFG Insured | 10/13 at 100.00 | Aa3 | | 1,821,523 | |
| | 1,065 | | Palm Beach County Housing Finance Authority, Florida, Multifamily Housing Revenue Bonds, Westlake Apartments Phase II, Series 2002, 5.150%, 7/01/22 – AGM Insured (Alternative Minimum Tax) | 7/12 at 100.00 | AAA | | 1,080,677 | |
| | 2,150 | | Palm Beach County School Board, Florida, Certificates of Participation, Series 2004A, 5.000%, 8/01/24 – FGIC Insured | 8/14 at 100.00 | AA– | | 2,261,693 | |
| | 3,000 | | Palm Beach County School Board, Florida, Certificates of Participation, Series 2007E, 5.000%, 8/01/27 – NPFG Insured | 8/17 at 100.00 | AA– | | 3,139,710 | |
Nuveen Investments 35
| | | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) |
| NIO | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Florida (continued) | | | | | |
| $ | 8,000 | | Palm Beach County Solid Waste Authority, Florida, Revenue Bonds, Series 2002B, 0.000%, 10/01/14 – AMBAC Insured | No Opt. Call | AA | $ | 7,444,000 | |
| | 1,470 | | Palm Beach County, Florida, Administrative Complex Revenue Refunding Bonds, Series 1993, 5.250%, 6/01/11 – FGIC Insured | No Opt. Call | Aa1 | | 1,496,783 | |
| | | | Palm Coast, Florida, Water Utility System Revenue Bonds, Series 2003: | | | | | |
| | 1,000 | | 5.250%, 10/01/19 – NPFG Insured | 10/13 at 100.00 | Aa3 | | 1,091,190 | |
| | 500 | | 5.250%, 10/01/20 – NPFG Insured | 10/13 at 100.00 | Aa3 | | 545,595 | |
| | 500 | | 5.250%, 10/01/21 – NPFG Insured | 10/13 at 100.00 | Aa3 | | 543,755 | |
| | 3,000 | | Pasco County, Florida, Water and Sewer Revenue Bonds, Series 2006 Refunding, 5.000%, 10/01/36 – AGM Insured | 4/16 at 100.00 | AA+ | | 3,107,100 | |
| | | | Plantation, Florida, Non-Ad Valorem Revenue Refunding and Improvement Bonds, Series 2003: | | | | | |
| | 2,225 | | 5.000%, 8/15/18 – AGM Insured | 8/13 at 100.00 | Aa3 | | 2,342,413 | |
| | 1,300 | | 5.000%, 8/15/21 – AGM Insured | 8/13 at 100.00 | Aa3 | | 1,344,161 | |
| | 1,170 | | Polk County, Florida, Utility System Revenue Bonds, Series 2004A, 5.000%, 10/01/24 – FGIC Insured | 10/14 at 100.00 | Aa3 | | 1,219,374 | |
| | 1,000 | | Port Saint Lucie, Florida, Special Assessment Revenue Bonds, Southwest Annexation District 1B, Series 2007, 5.000%, 7/01/33 – NPFG Insured | 7/17 at 100.00 | A | | 987,240 | |
| | | | Port St. Lucie, Florida, Stormwater Utility System Revenue Refunding Bonds, Series 2002: | | | | | |
| | 1,190 | | 5.250%, 5/01/15 – NPFG Insured | 5/12 at 100.00 | Aa3 | | 1,255,034 | |
| | 1,980 | | 5.250%, 5/01/17 – NPFG Insured | 5/12 at 100.00 | Aa3 | | 2,088,207 | |
| | | | Port St. Lucie, Florida, Utility System Revenue Bonds, Refunding Series 2009: | | | | | |
| | 3,775 | | 5.250%, 9/01/35 – AGC Insured | 9/18 at 100.00 | AA+ | | 3,984,286 | |
| | 3,500 | | 5.000%, 9/01/35 – AGC Insured | 9/18 at 100.00 | AA+ | | 3,653,090 | |
| | 10,000 | | Port St. Lucie, Florida, Utility System Revenue Bonds, Series 2001, 0.000%, 9/01/29 (Pre-refunded 9/01/11) – NPFG Insured | 9/11 at 34.97 | A (4) | | 3,482,400 | |
| | 1,830 | | Port St. Lucie, Florida, Utility System Revenue Bonds, Series 2003, 5.000%, 9/01/21 (Pre-refunded 9/01/13) – NPFG Insured | 9/13 at 100.00 | A (4) | | 2,052,876 | |
| | 1,000 | | Port St. Lucie, Florida, Utility System Revenue Bonds, Series 2004, 5.000%, 9/01/21 – NPFG Insured | 9/14 at 100.00 | Aa3 | | 1,056,900 | |
| | 1,895 | | Reedy Creek Improvement District, Orange and Osceola Counties, Florida, General Obligation Bonds, Series 2005B, 5.000%, 6/01/25 – AMBAC Insured | 6/15 at 100.00 | Aa3 | | 1,978,513 | |
| | | | Sebring, Florida, Water and Wastewater Revenue Refunding Bonds, Series 2002: | | | | | |
| | 1,360 | | 5.250%, 1/01/17 – FGIC Insured | 1/13 at 100.00 | A | | 1,464,312 | |
| | 770 | | 5.250%, 1/01/18 – FGIC Insured | 1/13 at 100.00 | A | | 822,067 | |
| | 500 | | 5.250%, 1/01/20 – FGIC Insured | 1/13 at 100.00 | A | | 533,810 | |
| | 5,730 | | Seminole County, Florida, Water and Sewer Revenue Refunding and Improvement Bonds, Series 1992, 6.000%, 10/01/19 – NPFG Insured (ETM) | No Opt. Call | A (4) | | 6,876,917 | |
| | 3,530 | | Seminole County, Florida, Water and Sewer Revenue Refunding and Improvement Bonds, Series 1992, 6.000%, 10/01/19 – NPFG Insured | No Opt. Call | A | | 4,165,612 | |
| | 4,260 | | St. Lucie County School Board, Florida, Certificates of Participation, Master Lease Program, Series 2004A, 5.000%, 7/01/24 – AGM Insured | 7/14 at 100.00 | AA+ | | 4,409,824 | |
| | | | St. Lucie County, Florida, Utility System Revenue Refunding Bonds, Series 1993: | | | | | |
| | 5,000 | | 5.500%, 10/01/15 – FGIC Insured (ETM) | No Opt. Call | N/R (4) | | 5,642,350 | |
| | 1,200 | | 5.500%, 10/01/21 – FGIC Insured (ETM) | No Opt. Call | N/R (4) | | 1,494,336 | |
| | | | St. Petersburg, Florida, Sales Tax Revenue Bonds, Professional Sports Facility, Series 2003: | | | | | |
| | 1,475 | | 5.125%, 10/01/20 – AGM Insured | 10/13 at 100.00 | Aa3 | | 1,618,400 | |
| | 1,555 | | 5.125%, 10/01/21 – AGM Insured | 10/13 at 100.00 | Aa3 | | 1,706,177 | |
| | 2,500 | | Tallahassee, Florida, Energy System Revenue Bonds, Series 2005, 5.000%, 10/01/29 – NPFG Insured | 10/15 at 100.00 | AA | | 2,588,025 | |
| | 1,245 | | Tamarac, Florida, Sales Tax Revenue Bonds, Series 2002, 5.000%, 4/01/22 – FGIC Insured | 4/12 at 100.00 | A+ | | 1,298,709 | |
| | 400 | | Tamarac, Florida, Utility System Revenue Bonds, Series 2009, 5.000%, 10/01/39 – AGC Insured | 10/19 at 100.00 | AA+ | | 410,996 | |
| | 1,500 | | Tampa, Florida, Healthcare System Revenue Bonds, Allegany Health
System – St. Joseph’s Hospital, Series 1993, 5.125%,
12/01/23 – NPFG Insured (ETM) | 12/10 at 100.00 | AAA | | 1,521,780 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Florida (continued) | | | | | |
| $ | 10,255 | | Tampa, Florida, Revenue Bonds, University of Tampa, Series 2006, 5.000%, 4/01/35 – CIFG Insured | 4/16 at 100.00 | N/R | $ | 9,897,101 | |
| | 1,390 | | Venice, Florida, General Obligation Bonds, Series 2004, 5.000%, 2/01/24 – AMBAC Insured | 2/14 at 100.00 | Aa2 | | 1,449,631 | |
| | 4,275 | | Volusia County School Board, Florida, Certificates of Participation, Series 2005B, 5.000%, 8/01/24 – AGM Insured | 8/15 at 100.00 | Aa3 | | 4,392,007 | |
| | 2,000 | | Volusia County, Florida, Gas Tax Revenue Bonds, Series 2004, 5.000%, 10/01/21 – AGM Insured | 10/14 at 100.00 | AA+ | | 2,110,660 | |
| | 12,000 | | Volusia County, Florida, School Board Certificates of Participation, Series 2007, 5.000%, 8/01/32 – AGM Insured (UB) | 8/17 at 100.00 | Aa3 | | 12,132,720 | |
| | 1,785 | | Volusia County, Florida, Tax Revenue Bonds, Tourist Development, Series 2004, 5.000%, 12/01/24 – AGM Insured | 12/14 at 100.00 | Aa3 | | 1,869,484 | |
| | 359,745 | | Total Florida | | | | 355,705,235 | |
| | | | Georgia – 1.9% (1.2% of Total Investments) | | | | | |
| | 1,000 | | Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 2004, 5.000%, 11/01/22 – AGM Insured | 11/14 at 100.00 | AA+ | | 1,054,460 | |
| | 10,000 | | Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 2009B, 5.375%, 11/01/39 – AGM Insured | 11/19 at 100.00 | AA+ | | 10,590,400 | |
| | 2,825 | | Cherokee County Water and Sewerage Authority, Georgia, Revenue Bonds, Refunding Series 2007, 4.000%, 8/01/26 | 8/20 at 100.00 | Aa2 | | 2,878,647 | |
| | 1,520 | | College Park Business and Industrial Development Authority, Georgia, Revenue Bonds, Public Safety Project, Series 2004, 5.250%, 9/01/23 – NPFG Insured | 9/14 at 102.00 | AA– | | 1,655,098 | |
| | | | Fulton County Development Authority, Georgia, Revenue Bonds, Georgia Tech Molecular Science Building, Series 2004: | | | | | |
| | 1,695 | | 5.250%, 5/01/19 – NPFG Insured | 5/14 at 100.00 | Aa3 | | 1,866,924 | |
| | 1,135 | | 5.250%, 5/01/20 – NPFG Insured | 5/14 at 100.00 | Aa3 | | 1,250,123 | |
| | 4,500 | | 5.000%, 5/01/36 – NPFG Insured | 5/14 at 100.00 | Aa3 | | 4,600,755 | |
| | 960 | | Glynn-Brunswick Memorial Hospital Authority, Georgia, Revenue Bonds, Southeast Georgia Health Systems, Series 1996, 5.250%, 8/01/13 – NPFG Insured | 1/11 at 100.00 | A | | 962,102 | |
| | 2,250 | | Gwinnett County Hospital Authority, Georgia, Revenue Anticipation Certificates, Gwinnett Hospital System Inc. Project, Series 2007C, 5.500%, 7/01/39 – AGM Insured (Alternative Minimum Tax) | 7/19 at 100.00 | Aa3 | | 2,368,643 | |
| | 25,885 | | Total Georgia | | | | 27,227,152 | |
| | | | Idaho – 0.2% (0.1% of Total Investments) | | | | | |
| | 130 | | Idaho Housing Agency, Single Family Mortgage Senior Bonds, Series 1994B-1, 6.750%, 7/01/22 | No Opt. Call | Aaa | | 136,215 | |
| | 90 | | Idaho Housing Agency, Single Family Mortgage Senior Bonds, Series 1994B-2, 6.900%, 7/01/26 (Alternative Minimum Tax) | No Opt. Call | Aaa | | 91,482 | |
| | 125 | | Idaho Housing Agency, Single Family Mortgage Senior Bonds, Series 1995B, 6.600%, 7/01/27 (Alternative Minimum Tax) | 1/11 at 100.00 | Aaa | | 125,728 | |
| | | | Idaho Housing and Finance Association, Grant and Revenue Anticipation Bonds, Federal Highway Trust Funds, Series 2006: | | | | | |
| | 1,000 | | 5.000%, 7/15/23 – NPFG Insured | 7/16 at 100.00 | Aa2 | | 1,079,890 | |
| | 1,065 | | 5.000%, 7/15/24 – NPFG Insured | 7/16 at 100.00 | Aa2 | | 1,142,372 | |
| | 2,410 | | Total Idaho | | | | 2,575,687 | |
| | | | Illinois – 5.8% (3.7% of Total Investments) | | | | | |
| | 1,050 | | Bedford Park, Illinois, General Obligation Bonds, Series 2004A, 5.250%, 12/15/20 – AGM Insured | 12/14 at 100.00 | AA+ | | 1,171,727 | |
| | 7,000 | | Chicago, Illinois, General Airport Revenue Bonds, O’Hare International Airport, Third Lien Refunding Series 2010C, 5.250%, 1/01/35 – AGC Insured | No Opt. Call | AA+ | | 7,363,650 | |
| | | | Chicago, Illinois, Second Lien Passenger Facility Charge Revenue Refunding Bonds, O’Hare International Airport, Series 2001E: | | | | | |
| | 4,615 | | 5.500%, 1/01/17 – AMBAC Insured (Alternative Minimum Tax) | 1/11 at 101.00 | A2 | | 4,687,594 | |
| | 4,870 | | 5.500%, 1/01/18 – AMBAC Insured (Alternative Minimum Tax) | 1/11 at 101.00 | A2 | | 4,944,462 | |
| | 7,200 | | Chicago, Illinois, Third Lien General Airport Revenue Bonds, O’Hare International Airport, Series 2005A, 5.250%, 1/01/24 – NPFG Insured | 1/16 at 100.00 | A1 | | 7,612,920 | |
| | 7,025 | | De Witt, Ford, Livingston, Logan, Mc Lean and Tazewell Community College District 540, Illinois, General Obligation Bonds, Series 2007, 3.000%, 12/01/26 – AGM Insured | 12/17 at 100.00 | Aa2 | | 6,034,897 | |
Nuveen Investments 37
| | | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) |
| NIO | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Illinois (continued) | | | | | |
| $ | 10,000 | | Illinois Development Finance Authority, Revenue Bonds, Provena Health, Series 1998A, 5.500%, 5/15/21 – NPFG Insured | 11/10 at 100.00 | A | $ | 10,005,200 | |
| | 2,095 | | Illinois Educational Facilities Authority, Revenue Bonds, Robert Morris College, Series 2000, 5.800%, 6/01/30 – NPFG Insured | 12/10 at 100.00 | Baa1 | | 2,095,629 | |
| | 22,510 | | Illinois, General Obligation Bonds, Illinois FIRST Program, Series 2002, 5.125%, 2/01/27 – FGIC Insured | 2/12 at 100.00 | A+ | | 22,705,612 | |
| | 20,000 | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Capital Appreciation Refunding Series 2010B-1, 0.000%, 6/15/45 | No Opt. Call | AAA | | 2,430,600 | |
| | 20,045 | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Series 2002A, 0.000%, 12/15/35 – NPFG Insured | No Opt. Call | AAA | | 4,461,215 | |
| | | | Schaumburg, Illinois, General Obligation Bonds, Series 2004B: | | | | | |
| | 4,260 | | 5.000%, 12/01/22 – FGIC Insured | 12/14 at 100.00 | Aaa | | 4,549,723 | |
| | 2,365 | | 5.000%, 12/01/23 – FGIC Insured | 12/14 at 100.00 | Aaa | | 2,515,485 | |
| | 4,000 | | Southwestern Illinois Development Authority, School Revenue Bonds, Triad School District 2, Madison County, Illinois, Series 2006, 0.000%, 10/01/25 – NPFG Insured | No Opt. Call | A+ | | 1,749,320 | |
| | 117,035 | | Total Illinois | | | | 82,328,034 | |
| | | | Indiana – 4.3% (2.8% of Total Investments) | | | | | |
| | 2,030 | | Decatur Township-Marion County Multi-School Building Corporation, Indiana, First Mortgage Bonds, Series 2003, 5.000%, 7/15/20 (Pre-refunded 7/15/13) – FGIC Insured | 7/13 at 100.00 | AA+ (4) | | 2,256,974 | |
| | 5,000 | | Indiana Finance Authority, Revenue Bonds, Trinity Health Care Group, Refunding Series 2010B., 5.000%, 12/01/37 | 12/20 at 100.00 | AA | | 5,172,050 | |
| | 8,000 | | Indiana Municipal Power Agency, Power Supply Revenue Bonds, Series 2007A, 5.000%, 1/01/42 – NPFG Insured | 1/17 at 100.00 | A+ | | 8,165,440 | |
| | 5,000 | | Indianapolis Local Public Improvement Bond Bank Bonds, Indiana, PILOT Infrastructure Project Revenue Bonds, Series 2010F, 5.000%, 1/01/35 – AGM Insured | No Opt. Call | AA+ | | 5,307,450 | |
| | 20,000 | | Indianapolis Local Public Improvement Bond Bank, Indiana, Series 1999E, 0.000%, 2/01/28 – AMBAC Insured | No Opt. Call | AA | | 9,614,800 | |
| | 5,300 | | Indianapolis Local Public Improvement Bond Bank, Indiana, Waterworks Project Series 2009A, 5.500%, 1/01/38 – AGC Insured | 1/19 at 100.00 | AA+ | | 5,831,749 | |
| | 3,250 | | Indianapolis Local Public Improvement Bond Bank, Indiana, Waterworks Project, Series 2002A, 5.250%, 7/01/33 (Pre-refunded 7/01/12) – NPFG Insured | 7/12 at 100.00 | AAA | | 3,511,008 | |
| | 1,340 | | Monroe-Gregg Grade School Building Corporation, Morgan County, Indiana, First Mortgage Bonds, Series 2004, 5.000%, 1/15/25 (Pre-refunded 1/15/14) – AGM Insured | 1/14 at 100.00 | AA+ (4) | | 1,517,135 | |
| | 5,000 | | Noblesville Redevelopment Authority, Indiana, Economic Development Lease Rental Bonds, Exit 10 Project, Series 2003, 5.000%, 1/15/28 – AMBAC Insured | 7/13 at 100.00 | AA– | | 5,133,450 | |
| | 10,000 | | Purdue University, Indiana, Student Fee Bonds, Series 2002O, 5.000%, 7/01/19 – NPFG Insured | 1/12 at 100.00 | Aaa | | 10,287,300 | |
| | 3,705 | | Whitley County Middle School Building Corporation, Columbia City, Indiana, First Mortgage Bonds, Series 2003, 5.000%, 7/15/16 (Pre-refunded 7/15/13) – AGM Insured | 7/13 at 100.00 | Aa3 (4) | | 4,138,337 | |
| | 68,625 | | Total Indiana | | | | 60,935,693 | |
| | | | Kansas – 0.7% (0.4% of Total Investments) | | | | | |
| | 2,055 | | Kansas Turnpike Authority, Revenue Bonds, Series 2004A-2, 5.000%,
9/01/23 – AGM Insured | 9/14 at 101.00 | AA+ | | 2,219,523 | |
| | | | Neosho County Unified School District 413, Kansas, General Obligation Bonds, Series 2006: | | | | | |
| | 2,145 | | 5.000%, 9/01/27 – AGM Insured | 9/14 at 100.00 | Aa3 | | 2,224,773 | |
| | 4,835 | | 5.000%, 9/01/29 – AGM Insured | 9/14 at 100.00 | Aa3 | | 4,981,791 | |
| | 9,035 | | Total Kansas | | | | 9,426,087 | |
| | | | Kentucky – 2.9% (1.9% of Total Investments) | | | | | |
| | 3,870 | | Kenton County School District Finance Corporation, Kentucky, School Building Revenue Bonds, Series 2004, 5.000%, 6/01/20 – NPFG Insured | 6/14 at 100.00 | Aa2 | | 4,247,635 | |
| | | | Kentucky State Property and Buildings Commission, Revenue Bonds, Project 93, Refunding Series 2009: | | | | | |
| | 3,860 | | 5.250%, 2/01/20 – AGC Insured | 2/19 at 100.00 | AA+ | | 4,517,821 | |
| | 10,000 | | 5.250%, 2/01/24 – AGC Insured | 2/19 at 100.00 | AA+ | | 11,299,900 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Kentucky (continued) | | | | | |
| $ | 7,500 | | Kentucky Turnpike Authority, Economic Development Road Revenue Bonds, Revitalization Project, Series 2006B, 5.000%, 7/01/25 – AMBAC Insured | 7/16 at 100.00 | AA+ | $ | 8,207,100 | |
| | 12,980 | | Louisville and Jefferson County Metropolitan Sewer District, Kentucky, Sewer and Drainage System Revenue Bonds, Series 2001A, 5.500%, 5/15/34 – NPFG Insured | 11/11 at 101.00 | AA– | | 13,603,429 | |
| | 38,210 | | Total Kentucky | | | | 41,875,885 | |
| | | | Louisiana – 4.5% (2.9% of Total Investments) | | | | | |
| | 5,000 | | DeSoto Parish, Louisiana, Pollution Control Revenue Refunding Bonds, Cleco Utility Group Inc. Project, Series 1999, 5.875%, 9/01/29 – AMBAC Insured | 3/11 at 101.00 | BBB | | 5,024,700 | |
| | 3,025 | | Lafayette City and Parish, Louisiana, Utilities Revenue Bonds, Series 2004, 5.250%, 11/01/22 – NPFG Insured | 11/14 at 100.00 | A+ | | 3,331,705 | |
| | 4,535 | | Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge General Hospital, Series 2004, 5.250%, 7/01/24 – NPFG Insured | 7/14 at 100.00 | A | | 4,688,963 | |
| | | | Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2005A: | | | | | |
| | 2,400 | | 5.000%, 5/01/25 – FGIC Insured | 5/15 at 100.00 | Aa1 | | 2,529,912 | |
| | 4,415 | | 5.000%, 5/01/26 – FGIC Insured | 5/15 at 100.00 | Aa1 | | 4,637,163 | |
| | 5,000 | | 5.000%, 5/01/27 – FGIC Insured | 5/15 at 100.00 | Aa1 | | 5,228,400 | |
| | | | Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006A: | | | | | |
| | 3,300 | | 4.750%, 5/01/39 – AGM Insured (UB) | 5/16 at 100.00 | AA+ | | 3,363,195 | |
| | 35,725 | | 4.500%, 5/01/41 – FGIC Insured (UB) | 5/16 at 100.00 | Aa1 | | 35,750,722 | |
| | 38 | | Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006, Residuals 660-1, 15.415%, 5/01/34 – FGIC Insured (IF) | 5/16 at 100.00 | AA | | 38,444 | |
| | 63,438 | | Total Louisiana | | | | 64,593,204 | |
| | | | Maine – 0.2% (0.2% of Total Investments) | | | | | |
| | 3,000 | | Maine Health and Higher Educational Facilities Authority, Revenue Bonds, Series 2003B, 5.000%, 7/01/28 (Pre-refunded 7/01/13) – AGM Insured | 7/13 at 100.00 | Aaa | | 3,302,610 | |
| | | | Maryland – 0.4% (0.2% of Total Investments) | | | | | |
| | 5,345 | | Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue Bonds, Series 2006A, 5.250%, 9/01/28 – SYNCORA GTY Insured | 9/16 at 100.00 | Baa3 | | 5,193,950 | |
| | | | Massachusetts – 5.2% (3.4% of Total Investments) | | | | | |
| | 4,500 | | Massachusetts Department of Transportation, Metropolitan Highway System Revenue Bonds, Commonwealth Contract Assistance Secured, Refunding Series 2010B, 5.000%, 1/01/35 | 1/20 at 100.00 | AA | | 4,808,565 | |
| | 22,500 | | Massachusetts Development Finance Authority, Revenue Bonds, WGBH Educational Foundation, Series 2002A, 5.375%, 1/01/42 (Pre-refunded 1/01/12) – AMBAC Insured | 1/12 at 101.00 | A (4) | | 24,027,525 | |
| | 5,330 | | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Harvard University, Tender Option Bond Trust 2010-20W, 13.198%, 12/15/34 (IF) | 12/19 at 100.00 | AAA | | 6,907,947 | |
| | 11,000 | | Massachusetts School Building Authority, Dedicated Sales Tax Revenue Bonds, Series 2005A, 5.000%, 8/15/23 – AGM Insured (UB) | 8/15 at 100.00 | AA+ | | 12,213,300 | |
| | 7,255 | | Massachusetts Water Resources Authority, General Revenue Bonds, Series 2007A, 4.500%, 8/01/46 – AGM Insured (UB) | 2/17 at 100.00 | AA+ | | 7,298,958 | |
| | 15,000 | | Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, Series 2004, 5.250%, 1/01/23 (Pre-refunded 1/01/14) – FGIC Insured | 1/14 at 100.00 | A1 (4) | | 16,987,950 | |
| | 1,500 | | University of Massachusetts Building Authority, Senior Lien Project Revenue Bonds, Series 2004-1, 5.375%, 11/01/20 (Pre-refunded 11/01/14) – AMBAC Insured | 11/14 at 100.00 | A+ (4) | | 1,759,875 | |
| | 67,085 | | Total Massachusetts | | | | 74,004,120 | |
| | | | Michigan – 2.6% (1.7% of Total Investments) | | | | | |
| | 5,490 | | Detroit City School District, Wayne County, Michigan, Unlimited Tax School Building and Site Improvement Bonds, Series 2001A, 6.000%, 5/01/29 – AGM Insured (UB) | No Opt. Call | AA+ | | 6,225,770 | |
| | 6,000 | | Detroit, Michigan, General Obligation Bonds, Series 2001A-1, 5.375%, 4/01/18 – NPFG Insured | 10/11 at 100.00 | A | | 5,857,200 | |
| | 7,420 | | Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 1997A, 5.000%, 7/01/27 – NPFG Insured | 1/11 at 100.00 | Aa3 | | 7,421,781 | |
| | 1,085 | | Grand Rapids Community College, Kent County, Michigan, General Obligation Refunding Bonds, Series 2003, 5.250%, 5/01/20 – AMBAC Insured | 5/13 at 100.00 | Aa1 | | 1,183,844 | |
Nuveen Investments 39
| | | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) |
| NIO | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Michigan (continued) | | | | | |
| $ | 6,850 | | Wayne County, Michigan, Airport Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 1998A, 5.375%, 12/01/15 – NPFG Insured (Alternative Minimum Tax) | 12/10 at 100.00 | A | $ | 6,862,536 | |
| | 10,000 | | Wayne County, Michigan, Limited Tax General Obligation Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.250%, 12/01/25 – NPFG Insured | 12/11 at 101.00 | A | | 10,055,400 | |
| | 36,845 | | Total Michigan | | | | 37,606,531 | |
| | | | Minnesota – 2.1% (1.4% of Total Investments) | | | | | |
| | 5,000 | | Minneapolis, Minnesota, Health Care System Revenue Bonds,S Fairview Health Services, Series 2008B, 6.500%, 11/15/38 – AGC Insured | 11/18 at 100.00 | AA+ | | 5,706,600 | |
| | 5,000 | | Minnesota State, General Obligation Bonds, Various Purpose, Refunding Series 2010D, 5.000%, 8/01/18 | No Opt. Call | AAA | | 6,053,700 | |
| | 4,000 | | Northern Municipal Power Agency, Minnesota, Electric System Revenue Bonds, Refunding Series 2009A, 5.000%, 1/01/15 – AGC Insured | No Opt. Call | AA+ | | 4,544,960 | |
| | 13,005 | | Saint Paul Housing and Redevelopment Authority, Minnesota, Multifamily Housing Revenue Bonds, Marian Center Project, Series 2001A, 6.450%, 6/20/43 (Pre-refunded 12/20/11) | 12/11 at 102.00 | N/R (4) | | 14,162,445 | |
| | 27,005 | | Total Minnesota | | | | 30,467,705 | |
| | | | Nebraska – 2.4% (1.5% of Total Investments) | | | | | |
| | 27,125 | | Lincoln, Nebraska, Electric System Revenue Bonds, Series 2007A, 4.500%, 9/01/37 – FGIC Insured (UB) | 9/17 at 100.00 | AA | | 27,433,954 | |
| | 5,000 | | Municipal Energy Agency of Nebraska, Power Supply System Revenue and Refunding Bonds, Series 2009A, 5.375%, 4/01/39 – BHAC Insured | 4/19 at 100.00 | AA+ | | 5,429,600 | |
| | 1,000 | | Nebraska Public Power District, General Revenue Bonds, Series 2005A, 5.000%, 1/01/25 – AGM Insured | 1/15 at 100.00 | AA+ | | 1,077,070 | |
| | 33,125 | | Total Nebraska | | | | 33,940,624 | |
| | | | Nevada – 6.5% (4.2% of Total Investments) | | | | | |
| | 8,475 | | Clark County, Nevada, General Obligation Bank Bonds, Southern Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32 – NPFG Insured | 12/12 at 100.00 | Aaa | | 8,605,515 | |
| | 3,630 | | Clark County, Nevada, General Obligation Bank Bonds, Southern Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32 (Pre-refunded 12/01/12) – NPFG Insured | 12/12 at 100.00 | AA+ (4) | | 3,970,676 | |
| | 14,140 | | Clark County, Nevada, Passenger Facility Charge Revenue Bonds, Las Vegas-McCarran International Airport, Series 2010A, 5.250%, 7/01/39 – AGM Insured | 1/20 at 100.00 | AA+ | | 14,681,138 | |
| | 7,370 | | Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, Series 2004A-2, 5.125%, 7/01/25 – FGIC Insured | 7/14 at 100.00 | Aa3 | | 7,627,213 | |
| | | | Director of Nevada State Department of Business and Industry, Revenue
Bonds, Las Vegas Monorail Project, First Tier, Series 2000: | | | | | |
| | 15,000 | | 5.625%, 1/01/34 – AMBAC Insured (5) | 1/12 at 100.00 | D | | 3,152,550 | |
| | 11,400 | | 5.375%, 1/01/40 – AMBAC Insured (5) | 1/11 at 100.00 | D | | 2,395,482 | |
| | 14,985 | | Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 5.375%, 6/01/32 – FGIC Insured | 6/12 at 100.00 | A | | 14,833,202 | |
| | 25,300 | | Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 5.375%, 6/01/32 (Pre-refunded 6/01/12) – FGIC Insured | 6/12 at 100.00 | A3 (4) | | 27,269,605 | |
| | 10,000 | | Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, Reno Transportation Rail Access Corridor Project, Series 2002, 5.125%, 6/01/27 (Pre-refunded 6/01/12) – AMBAC Insured | 6/12 at 100.00 | Baa3 (4) | | 10,730,700 | |
| | 110,300 | | Total Nevada | | | | 93,266,081 | |
| | | | New Jersey – 4.1% (2.6% of Total Investments) | | | | | |
| | | | Essex County Improvement Authority, New Jersey, Guaranteed Revenue Bonds, Project Consolidation, Series 2004: | | | | | |
| | 2,000 | | 5.125%, 10/01/21 – NPFG Insured | 10/14 at 100.00 | Aa2 | | 2,161,120 | |
| | 2,250 | | 5.125%, 10/01/22 – NPFG Insured | 10/14 at 100.00 | Aa2 | | 2,406,870 | |
| | | | New Jersey Economic Development Authority, Revenue Bonds, Motor Vehicle Surcharge, Series 2004A: | | | | | |
| | 3,850 | | 5.000%, 7/01/22 – NPFG Insured | 7/14 at 100.00 | A | | 4,054,012 | |
| | 3,850 | | 5.000%, 7/01/23 – NPFG Insured | 7/14 at 100.00 | A | | 4,037,726 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | New Jersey (continued) | | | | | |
| $ | 26,000 | | New Jersey Turnpike Authority, Revenue Bonds, Refunding Series 2005D-1, 5.250%, 1/01/26 – AGM Insured | No Opt. Call | AA+ | $ | 30,745,520 | |
| | | | New Jersey Turnpike Authority, Revenue Bonds, Series 2003A: | | | | | |
| | 8,250 | | 5.000%, 1/01/19 – FGIC Insured | 7/13 at 100.00 | A+ | | 8,949,105 | |
| | 2,000 | | 5.000%, 1/01/23 – AGM Insured (UB) | 7/13 at 100.00 | AA+ | | 2,161,840 | |
| | 3,320 | | New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 5.000%, 1/01/21 – AGM Insured (UB) | 1/15 at 100.00 | AA+ | | 3,629,557 | |
| | 51,520 | | Total New Jersey | | | | 58,145,750 | |
| | | | New Mexico – 1.3% (0.8% of Total Investments) | | | | | |
| | 3,660 | | San Juan County, New Mexico, Subordinate Gross Receipts Tax Revenue Bonds, Series 2005, 5.000%, 6/15/25 – NPFG Insured | 6/15 at 100.00 | Aa3 | | 3,891,568 | |
| | 13,600 | | University of New Mexico, System Improvement Subordinated Lien Revenue Bonds, Series 2007A, 5.000%, 6/01/36 – AGM Insured | 6/17 at 100.00 | AA+ | | 14,216,080 | |
| | 17,260 | | Total New Mexico | | | | 18,107,648 | |
| | | | New York – 7.0% (4.5% of Total Investments) | | | | | |
| | 1,880 | | Dormitory Authority of the State of New York, FHA-Insured Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/23 – FGIC Insured | 2/15 at 100.00 | A | | 1,966,029 | |
| | 3,335 | | Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 – AMBAC Insured | 3/15 at 100.00 | AAA | | 3,627,913 | |
| | 3,820 | | Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series 2006A, 4.500%, 2/15/47 – NPFG Insured | 2/17 at 100.00 | A | | 3,667,429 | |
| | 12,500 | | Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2006A, 5.000%, 12/01/25 – FGIC Insured | 6/16 at 100.00 | A | | 13,365,375 | |
| | 6,900 | | Long Island Power Authority, New York, Electric System Revenue Bonds, Series 2006F, 4.250%, 5/01/33 – NPFG Insured | 11/16 at 100.00 | A | | 6,884,130 | |
| | | | Metropolitan Transportation Authority, New York, State Service Contract Refunding Bonds, Series 2002A: | | | | | |
| | 1,500 | | 5.000%, 7/01/21 – FGIC Insured | 7/12 at 100.00 | AA– | | 1,585,965 | |
| | 5,000 | | 5.000%, 7/01/25 – FGIC Insured | 7/12 at 100.00 | AA– | | 5,213,850 | |
| | 3,025 | | Monroe County Industrial Development Corporation, New York, FHA Insured Mortgage Revenue Bonds, Unity Hospital of Rochester Project, Series 2010, 5.500%, 8/15/40 (WI/DD, Settling 11/05/10) | 2/21 at 100.00 | Aa2 | | 3,253,751 | |
| | 2,615 | | New York City Industrial Development Agency, New York, Revenue Bonds, Yankee Stadium Project PILOT, Series 2009A, 7.000%, 3/01/49 – AGC Insured | 3/19 at 100.00 | AA+ | | 3,062,400 | |
| | 5,000 | | New York City, New York, General Obligation Bonds, Fiscal Series 2005F-1, 5.000%, 9/01/21 – AMBAC Insured | 9/15 at 100.00 | AA | | 5,498,400 | |
| | 10,000 | | New York City, New York, General Obligation Bonds, Fiscal Series 2005M, 5.000%, 4/01/26 – FGIC Insured | 4/15 at 100.00 | AA | | 10,784,000 | |
| | 5,000 | | New York State Thruway Authority, General Revenue Bonds, Series 2005F, 5.000%, 1/01/26 – AMBAC Insured | 1/15 at 100.00 | A+ | | 5,273,650 | |
| | 14,000 | | New York State Thruway Authority, General Revenue Bonds, Series 2005G, 5.000%, 1/01/30 – AGM Insured | 7/15 at 100.00 | AA+ | | 14,770,560 | |
| | 3,650 | | New York State Urban Development Corporation, Service Contract Revenue Bonds, Series 2005B, 5.000%, 3/15/25 – AGM Insured (UB) | 3/15 at 100.00 | AAA | | 3,942,621 | |
| | | | New York State Urban Development Corporation, State Personal Income Tax Revenue Bonds, Series 2004A-1: | | | | | |
| | 1,000 | | 5.000%, 3/15/23 – FGIC Insured | 3/14 at 100.00 | AAA | | 1,096,810 | |
| | 5,000 | | 5.000%, 3/15/25 – FGIC Insured | 3/14 at 100.00 | AAA | | 5,371,750 | |
| | 10,000 | | Triborough Bridge and Tunnel Authority, New York, Subordinate Lien General Purpose Revenue Refunding Bonds, Series 2002E, 5.000%, 11/15/32 – NPFG Insured | 11/12 at 100.00 | Aa3 | | 10,443,000 | |
| | 94,225 | | Total New York | | | | 99,807,633 | |
Nuveen Investments 41
| | | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) |
| NIO | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | North Carolina – 1.2% (0.8% of Total Investments) | | | | | |
| | | | Mooresville, North Carolina, Enterprise System Revenue Bonds, Series 2004: | | | | | |
| $ | 2,115 | | 5.000%, 5/01/22 – FGIC Insured | 5/14 at 100.00 | AA– | $ | 2,240,589 | |
| | 2,575 | | 5.000%, 5/01/26 – FGIC Insured | 5/14 at 100.00 | AA– | | 2,672,103 | |
| | 5,250 | | North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 2003A, 5.250%, 1/01/16 – AGM Insured | 1/13 at 100.00 | AA+ | | 5,683,230 | |
| | | | Raleigh Durham Airport Authority, North Carolina, Airport Revenue Bonds, Series 2005A: | | | | | |
| | 3,205 | | 5.000%, 5/01/23 – AMBAC Insured | 5/15 at 100.00 | Aa3 | | 3,435,119 | |
| | 3,295 | | 5.000%, 5/01/24 – AMBAC Insured | 5/15 at 100.00 | Aa3 | | 3,514,941 | |
| | 16,440 | | Total North Carolina | | | | 17,545,982 | |
| | | | North Dakota – 0.5% (0.3% of Total Investments) | | | | | |
| | | | Grand Forks, North Dakota, Sales Tax Revenue Bonds, Alerus Project, Series 2005A: | | | | | |
| | 2,195 | | 5.000%, 12/15/22 – NPFG Insured | 12/15 at 100.00 | Aa3 | | 2,385,482 | |
| | 1,355 | | 5.000%, 12/15/23 – NPFG Insured | 12/15 at 100.00 | Aa3 | | 1,468,319 | |
| | 3,000 | | 5.000%, 12/15/24 – NPFG Insured | 12/15 at 100.00 | Aa3 | | 3,234,690 | |
| | 6,550 | | Total North Dakota | | | | 7,088,491 | |
| | | | Ohio – 3.9% (2.5% of Total Investments) | | | | | |
| | 2,650 | | Cleveland State University, Ohio, General Receipts Bonds, Series 2004, 5.250%, 6/01/24 – FGIC Insured | 6/14 at 100.00 | A+ | | 2,830,783 | |
| | 2,000 | | Columbus City School District, Franklin County, Ohio, General Obligation Bonds, Series 2004, 5.250%, 12/01/25 (Pre-refunded 12/01/14) – AGM Insured | 12/14 at 100.00 | AA+ (4) | | 2,349,180 | |
| | 2,385 | | Columbus, Ohio, Tax Increment Financing Bonds, Easton Project, Series 2004A, 5.000%, 12/01/22 – AMBAC Insured | 6/14 at 100.00 | BBB+ | | 2,480,090 | |
| | 2,205 | | Hamilton City School District, Ohio, General Obligation Bonds, Series 2005, 5.000%, 12/01/24 – NPFG Insured | 6/15 at 100.00 | Baa1 | | 2,321,093 | |
| | 19,595 | | Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, Series 2006, 4.250%, 12/01/32 – AMBAC Insured | 12/16 at 100.00 | A1 | | 19,208,979 | |
| | 20,100 | | Lucas County, Ohio, Hospital Revenue Bonds, ProMedica Healthcare Obligated Group, Series 1999, 5.375%, 11/15/39 – AMBAC Insured | 11/10 at 100.50 | N/R | | 20,207,937 | |
| | 3,000 | | Ross Local School District, Butler County, Ohio, General Obligation Bonds, Series 2003, 5.000%, 12/01/28 (Pre-refunded 12/01/13) – AGM Insured | 12/13 at 100.00 | Aa2 (4) | | 3,395,670 | |
| | 2,000 | | University of Akron, Ohio, General Receipts Bonds, Federally Taxable Build America Bonds, Series 2010B, 5.000%, 1/01/29 – AGM Insured | 1/20 at 100.00 | AA+ | | 2,129,260 | |
| | 53,935 | | Total Ohio | | | | 54,922,992 | |
| | | | Oklahoma – 2.6% (1.7% of Total Investments) | | | | | |
| | 3,500 | | Oklahoma Capitol Improvement Authority, State Facilities Revenue Bonds, Series 2005F, 5.000%, 7/01/24 – AMBAC Insured | 7/15 at 100.00 | AA | | 3,727,430 | |
| | 1,685 | | Oklahoma Housing Finance Agency, GNMA Collateralized Single Family Mortgage Revenue Bonds, Series 1987A, 7.997%, 8/01/18 (Alternative Minimum Tax) | No Opt. Call | AAA | | 1,731,118 | |
| | 21,000 | | Oklahoma Municipal Power Authority, Power Supply System Revenue Bonds, Series 2007, 4.500%, 1/01/47 – FGIC Insured | 1/17 at 100.00 | A | | 20,820,660 | |
| | 5,245 | | Oklahoma State Industries Authority, Revenue Bonds, Oklahoma Medical Research Foundation, Series 2001, 5.250%, 2/01/21 – AMBAC Insured | 2/11 at 100.00 | A1 | | 5,305,160 | |
| | 4,880 | | University of Oklahoma, Student Housing Revenue Bonds, Series 2004, 5.000%, 7/01/22 – AMBAC Insured | 7/14 at 100.00 | Aa3 | | 5,104,431 | |
| | 36,310 | | Total Oklahoma | | | | 36,688,799 | |
| | | | Oregon – 0.2% (0.1% of Total Investments) | | | | | |
| | 2,535 | | Oregon Department of Administrative Services, Certificates of Participation, Series 2005A, 5.000%, 5/01/25 – AGM Insured | 5/15 at 100.00 | AA+ | | 2,687,354 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Pennsylvania – 5.0% (3.2% of Total Investments) | | | | | |
| $ | 2,165 | | Allegheny County Sanitary Authority, Pennsylvania, Sewerage Revenue Bonds, Series 2010, 5.000%, 6/01/40 – AGM Insured | No Opt. Call | AA+ | $ | 2,253,700 | |
| | 7,925 | | Commonwealth Financing Authority, Pennsylvania, State Appropriation Lease Bonds, Series 2006A, 5.000%, 6/01/26 – AGM Insured (UB) | 6/16 at 100.00 | AA+ | | 8,442,661 | |
| | 5,250 | | Delaware River Port Authority, New Jersey and Pennsylvania, Revenue Bonds, Series 2010E, 5.000%, 1/01/40 – AGM Insured | 1/20 at 100.00 | AA+ | | 5,497,433 | |
| | 1,565 | | Montgomery County Industrial Development Authority, Pennsylvania, FHA Insured Mortgage Revenue Bonds, New Regional Medical Center Project, Series 2010, 5.375%, 8/01/38 | 8/20 at 100.00 | AA | | 1,654,315 | |
| | 1,800 | | Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Drexel University, Series 2005A, 5.000%, 5/01/28 – NPFG Insured | 5/15 at 100.00 | A+ | | 1,863,036 | |
| | 11,740 | | Pennsylvania Public School Building Authority, Lease Revenue Bonds, School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 – AGM Insured (UB) | 12/16 at 100.00 | AA+ | | 11,675,430 | |
| | 2,625 | | Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 2006A, 5.000%, 12/01/26 – AMBAC Insured | 6/16 at 100.00 | Aa3 | | 2,797,148 | |
| | 10,000 | | Philadelphia, Pennsylvania, Airport Revenue Bonds, Series 2010A, 5.000%, 6/15/40 (WI/DD, Settling 11/15/10) | 6/20 at 100.00 | AA+ | | 10,245,200 | |
| | 7,055 | | Pittsburgh and Allegheny County Sports and Exhibition Authority, Pennsylvania, Hotel Room Excise Tax Revenue Bonds, Refunding Series 2010, 5.000%, 2/01/35 – AGC Insured | 8/20 at 100.00 | AA+ | | 7,229,682 | |
| | 5,180 | | Pittsburgh and Allegheny County Sports and Exhibition Authority, Pennsylvania, Sales Tax Revenue Bonds, Refunding Series 2010, 5.000%, 2/01/31 – AGM Insured | 8/20 at 100.00 | AA+ | | 5,445,009 | |
| | 6,335 | | Radnor Township School District, Delaware County, Pennsylvania, General Obligation Bonds, Series 2005B, 5.000%, 2/15/30 – AGM Insured | 8/15 at 100.00 | Aa2 | | 6,700,593 | |
| | | | Reading School District, Berks County, Pennsylvania, General Obligation Bonds, Series 2005: | | | | | |
| | 3,285 | | 5.000%, 1/15/22 – AGM Insured (UB) | 1/16 at 100.00 | AA+ | | 3,567,083 | |
| | 3,450 | | 5.000%, 1/15/23 – AGM Insured (UB) | 1/16 at 100.00 | AA+ | | 3,730,761 | |
| | 68,375 | | Total Pennsylvania | | | | 71,102,051 | |
| | | | Puerto Rico – 0.8% (0.6% of Total Investments) | | | | | |
| | 2,500 | | Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2005RR, 5.000%, 7/01/30 (Pre-refunded 7/01/15) – SYNCORA GTY Insured | 7/15 at 100.00 | AAA | | 2,945,925 | |
| | 2,000 | | Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2003G, 5.250%, 7/01/19 – FGIC Insured | 7/13 at 100.00 | A3 | | 2,076,540 | |
| | 1,550 | | Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, 8/01/21 – CIFG Insured | No Opt. Call | A3 | | 1,654,284 | |
| | 36,000 | | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A, 0.000%, 8/01/42 – FGIC Insured | No Opt. Call | Aa2 | | 5,437,080 | |
| | 42,050 | | Total Puerto Rico | | | | 12,113,829 | |
| | | | Rhode Island – 1.7% (1.1% of Total Investments) | | | | | |
| | 2,195 | | Providence Housing Development Corporation, Rhode Island, FHA-Insured Section 8 Assisted Mortgage Revenue Refunding Bonds, Barbara Jordan Apartments, Series 1994A, 6.750%, 7/01/25 – NPFG Insured | 1/11 at 100.00 | A | | 2,199,697 | |
| | 20,475 | | Rhode Island Depositors Economic Protection Corporation, Special Obligation Refunding Bonds, Series 1993B, 5.250%, 8/01/21 (Pre-refunded 2/01/11) – NPFG Insured | 2/11 at 100.00 | A (4) | | 20,734,418 | |
| | 1,405 | | Rhode Island Health & Educational Building Corporation, Higher Education Auxiliary Enterprise Revenue Bonds, Series 2004A, 5.500%, 9/15/24 – AMBAC Insured | 9/14 at 100.00 | A1 | | 1,532,138 | |
| | 24,075 | | Total Rhode Island | | | | 24,466,253 | |
| | | | South Carolina – 5.4% (3.5% of Total Investments) | | | | | |
| | 14,650 | | Anderson County School District 5, South Carolina, General Obligation Bonds, Series 2008, Trust 1181, 9.496%, 8/01/15 – AGM Insured (IF) | No Opt. Call | AA+ | | 16,545,710 | |
| | 10,000 | | Beaufort County, South Carolina, Tax Increment Bonds, New River Redevelopment Project, Series 2002, 5.000%, 6/01/27 – NPFG Insured | 12/12 at 100.00 | A+ | | 10,176,100 | |
Nuveen Investments 43
| | | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) |
| NIO | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | South Carolina (continued) | | | | | |
| | | | Medical University Hospital Authority, South Carolina, FHA-Insured Mortgage Revenue Bonds, Series 2004A: | | | | | |
| $ | 2,000 | | 5.250%, 8/15/22 – NPFG Insured | 8/14 at 100.00 | A | $ | 2,145,760 | |
| | 2,605 | | 5.250%, 8/15/23 – NPFG Insured | 8/14 at 100.00 | A | | 2,790,893 | |
| | 2,385 | | 5.250%, 8/15/25 – NPFG Insured | 8/14 at 100.00 | A | | 2,520,945 | |
| | 375 | | Piedmont Municipal Power Agency, South Carolina, Electric Revenue Bonds, Series 1988A, 0.000%, 1/01/13 – AMBAC Insured (ETM) | No Opt. Call | Aaa | | 332,273 | |
| | 7,955 | | Piedmont Municipal Power Agency, South Carolina, Electric Revenue Bonds, Series 1988A, 0.000%, 1/01/13 – AMBAC Insured | No Opt. Call | N/R | | 7,136,112 | |
| | 8,000 | | South Carolina JOBS Economic Development Authority, Industrial Revenue Bonds, South Carolina Electric and Gas Company, Series 2002A, 5.200%, 11/01/27 – AMBAC Insured | 11/12 at 100.00 | A | | 8,423,520 | |
| | 10,000 | | South Carolina JOBS Economic Development Authority, Industrial Revenue Bonds, South Carolina Electric and Gas Company, Series 2002B, 5.450%, 11/01/32 – AMBAC Insured (Alternative Minimum Tax) | 11/12 at 100.00 | A | | 10,055,500 | |
| | 17,500 | | South Carolina Transportation Infrastructure Bank, Revenue Bonds, Series 2007A, 4.500%, 10/01/34 – SYNCORA GTY Insured | 10/16 at 100.00 | Aa3 | | 17,562,650 | |
| | 75,470 | | Total South Carolina | | | | 77,689,463 | |
| | | | Tennessee – 0.5% (0.3% of Total Investments) | | | | | |
| | 6,455 | | Memphis-Shelby County Airport Authority, Tennessee, Airport Revenue Bonds, Series 2001A, 5.500%, 3/01/18 – AGM Insured (Alternative Minimum Tax) | 3/11 at 100.00 | AA+ | | 6,504,833 | |
| | | | Texas – 8.9% (5.8% of Total Investments) | | | | | |
| | 435 | | Capital Area Housing Finance Corporation, Texas, FNMA Backed Single Family Mortgage Revenue Refunding Bonds, Series 2002A-2, 6.300%, 4/01/35 – AMBAC Insured (Alternative Minimum Tax) | 4/12 at 106.00 | Aaa | | 461,664 | |
| | 12,500 | | Dallas-Ft. Worth International Airport, Texas, Joint Revenue Bonds, Series 2000A, 6.125%, 11/01/35 – NPFG Insured (Alternative Minimum Tax) | 11/10 at 100.00 | A+ | | 12,516,000 | |
| | 25,000 | | Harris County-Houston Sports Authority, Texas, Junior Lien Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 – NPFG Insured | 11/11 at 100.00 | A | | 24,412,250 | |
| | 4,671 | | Houston Housing Finance Corporation, Texas, GNMA Collateralized Mortgage Multifamily Housing Revenue Bonds, RRG Apartments Project, Series 2001, 6.350%, 3/20/42 | 9/11 at 105.00 | Aaa | | 4,901,654 | |
| | | | Houston, Texas, First Lien Combined Utility System Revenue Bonds, Series 2004A: | | | | | |
| | 4,000 | | 5.250%, 5/15/24 – FGIC Insured | 5/14 at 100.00 | AA | | 4,322,800 | |
| | 5,000 | | 5.250%, 5/15/25 – NPFG Insured | 5/14 at 100.00 | AA | | 5,385,650 | |
| | 17,500 | | Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, Convention and Entertainment Project, Series 2001B, 5.250%, 9/01/33 – AMBAC Insured | 9/11 at 100.00 | A2 | | 17,212,825 | |
| | 900 | | Houston, Texas, Subordinate Lien Airport System Revenue Bonds, Series 2000A, 5.625%, 7/01/30 – AGM Insured (Alternative Minimum Tax) | 1/11 at 100.00 | AA+ | | 900,468 | |
| | 23,865 | | Jefferson County Health Facilities Development Corporation, Texas, FHA-Insured Mortgage Revenue Bonds, Baptist Hospital of Southeast Texas, Series 2001, 5.500%, 8/15/41 – AMBAC Insured | 8/11 at 100.00 | N/R | | 24,749,198 | |
| | 140 | | Lower Colorado River Authority, Texas, Revenue Refunding and Improvement Bonds, Series 2001A, 5.000%, 5/15/21 (Pre-refunded 5/15/11) – NPFG Insured | 5/11 at 100.00 | A1 (4) | | 143,562 | |
| | 8,065 | | Lower Colorado River Authority, Texas, Revenue Refunding and Improvement Bonds, Series 2001A, 5.000%, 5/15/21 – NPFG Insured | 5/11 at 100.00 | A1 | | 8,210,170 | |
| | | | Port of Houston Authority, Harris County, Texas, General Obligation Port Improvement Bonds, Series 2001B: | | | | | |
| | 3,205 | | 5.500%, 10/01/18 – FGIC Insured (Alternative Minimum Tax) | 10/11 at 100.00 | AAA | | 3,276,664 | |
| | 3,375 | | 5.500%, 10/01/19 – FGIC Insured (Alternative Minimum Tax) | 10/11 at 100.00 | AAA | | 3,438,113 | |
| | 7,205 | | San Antonio, Texas, Airport System Improvement Revenue Bonds, Series 2001, 5.375%, 7/01/15 – FGIC Insured (Alternative Minimum Tax) | 7/11 at 101.00 | A+ | | 7,413,080 | |
| | 7,550 | | Waco Health Facilities Development Corporation, Texas, Hillcrest Health System Project, FHA Insured Mortgage Revenue Bonds, Series 2006A, 5.000%, 8/01/31 – NPFG Insured | 8/16 at 100.00 | A | | 7,706,436 | |
| | 1,840 | | Ysleta Independent School District Public Facility Corporation, Texas, Lease Revenue Refunding Bonds, Series 2001, 5.375%, 11/15/24 – AMBAC Insured | 11/10 at 100.00 | AA– | | 1,879,118 | |
| | 125,251 | | Total Texas | | | | 126,929,652 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Utah – 1.3% (0.8% of Total Investments) | | | | | |
| $ | 2,000 | | Clearfield City, Utah, Sales Tax Revenue Bonds, Series 2003, 5.000%, 7/01/28 (Pre-refunded 7/01/13) – FGIC Insured | 7/13 at 100.00 | AA– (4) | $ | 2,226,980 | |
| | 15,000 | | Utah Transit Authority, Sales Tax Revenue Bonds, Series 2008A, 5.000%, 6/15/32 – AGM Insured (UB) | 6/18 at 100.00 | AAA | | 16,155,900 | |
| | 17,000 | | Total Utah | | | | 18,382,880 | |
| | | | Virginia – 1.2% (0.8% of Total Investments) | | | | | |
| | 1,035 | | Loudoun County Industrial Development Authority, Virginia, Lease Revenue Bonds, Public Safety Facilities, Series 2003A, 5.250%, 12/15/20 – AGM Insured | 6/14 at 100.00 | AA+ | | 1,159,448 | |
| | 4,840 | | Metropolitan Washington D.C. Airports Authority, Airport System Revenue Bonds, Series 2001A, 5.500%, 10/01/19 – NPFG Insured (Alternative Minimum Tax) | 10/11 at 101.00 | AA– | | 5,056,300 | |
| | 1,000 | | Roanoke Industrial Development Authority, Virginia, Hospital Revenue Bonds, Carillion Health System Obligated Group, Series 2005B, 5.000%, 7/01/38 – AGM Insured | 7/20 at 100.00 | AA+ | | 1,027,340 | |
| | 10,000 | | Virginia Housing Development Authority, Commonwealth Mortgage Bonds, Series 2001H-1, 5.375%, 7/01/36 – NPFG Insured (UB) | 7/11 at 100.00 | AAA | | 10,199,900 | |
| | 16,875 | | Total Virginia | | | | 17,442,988 | |
| | | | Washington – 4.3% (2.8% of Total Investments) | | | | | |
| | 2,500 | | Grant County Public Utility District 2, Washington, Revenue Bonds, Wanapum Hydroelectric Development, Series 2005A, 5.000%, 1/01/29 – FGIC Insured | 1/15 at 100.00 | AA– | | 2,588,725 | |
| | 3,500 | | King County School District 401, Highline, Washington, General Obligation Bonds, Series 2004, 5.000%, 10/01/24 – FGIC Insured | 12/14 at 100.00 | AA+ | | 3,753,715 | |
| | 5,000 | | King County, Washington, General Obligation Sewer Bonds, Series 2009, Trust 1W, 13.493%, 1/01/39 – AGC Insured (IF) | 1/19 at 100.00 | AA+ | | 6,333,350 | |
| | 17,000 | | King County, Washington, Sewer Revenue Bonds, Series 2007, 5.000%, 1/01/42 – AGM Insured | 7/17 at 100.00 | AA+ | | 17,808,520 | |
| | 4,345 | | King County, Washington, Sewer Revenue Bonds, Tender Option Bond Trust 3090, 13.061%, 7/01/32 – AGM Insured (IF) | 7/17 at 100.00 | AA+ | | 4,980,326 | |
| | 4,250 | | Snohomish County Public Utility District 1, Washington, Generation System Revenue Bonds, Series 1989, 6.650%, 1/01/16 – FGIC Insured (ETM) | No Opt. Call | Aaa | | 5,364,988 | |
| | | | Tacoma, Washington, Solid Waste Utility Revenue Refunding Bonds, Series 2006: | | | | | |
| | 3,890 | | 5.000%, 12/01/24 – SYNCORA GTY Insured | 12/16 at 100.00 | AA | | 4,187,468 | |
| | 4,085 | | 5.000%, 12/01/25 – SYNCORA GTY Insured | 12/16 at 100.00 | AA | | 4,378,916 | |
| | 4,290 | | 5.000%, 12/01/26 – SYNCORA GTY Insured | 12/16 at 100.00 | AA | | 4,576,958 | |
| | 5,945 | | Washington State, General Obligation Bonds, Series 2006, Trust 1212, 13.126%, 7/01/14 – AGM Insured (IF) | No Opt. Call | AA+ | | 7,115,868 | |
| | 54,805 | | Total Washington | | | | 61,088,834 | |
| | | | West Virginia – 0.7% (0.5% of Total Investments) | | | | | |
| | 10,000 | | West Virginia Economic Development Authority, State Lottery Revenue Bonds, Series 2010A, 5.000%, 6/15/40 | 6/20 at 100.00 | AAA | | 10,466,300 | |
| | | | Wisconsin – 2.1% (1.4% of Total Investments) | | | | | |
| | 15,000 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Marshfield Clinic, Series 1997, 5.750%, 2/15/27 – NPFG Insured | 2/11 at 100.00 | A | | 15,004,800 | |
| | 290 | | Wisconsin, General Obligation Bonds, Series 2004-3, 5.250%, 5/01/20 – FGIC Insured | 5/14 at 100.00 | AA | | 315,161 | |
| | 2,600 | | Wisconsin, General Obligation Bonds, Series 2004-3, 5.250%, 5/01/20 (Pre-refunded 5/01/14) – FGIC Insured | 5/14 at 100.00 | Aa2 (4) | | 2,993,796 | |
| | 10,946 | | Wisconsin, General Obligation Bonds, Series 2004-4, 5.000%, 5/01/20 – NPFG Insured | 5/14 at 100.00 | AA | | 11,791,155 | |
| | 28,836 | | Total Wisconsin | | | | 30,104,912 | |
| $ | 2,298,725 | | Total Long-Term Investments (cost $2,114,348,889) – 154.0% | | | | 2,195,803,799 | |
Nuveen Investments 45
| | | Nuveen Insured Municipal Opportunity Fund, Inc. (continued) |
| NIO | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Short-Term Investments – 0.6% (0.4% of Total Investments) | | | | | |
| | | | Colorado – 0.1% (0.1% of Total Investments) | | | | | |
| $ | 1,400 | | Colorado Health Facilities Authority, Colorado, Revenue Bonds, Catholic Health Initiatives, Variable Rate Demand Obligations, Tender Option Bond Trust 2906Z, 0.290%, 3/01/16 (6) | No Opt. Call | A–1+ | $ | 1,400,000 | |
| | | | Georgia – 0.1% (0.1% of Total Investments) | | | | | |
| | 1,882 | | Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales Tax Revenue Bonds, Variable Rate Demand Obligations, Tender Option Bond Trust 2008-1061, 0.300%, 7/01/34 (6) | 7/17 at 100.00 | A–1 | | 1,882,000 | |
| | | | Illinois – 0.2% (0.1% of Total Investments) | | | | | |
| | 3,000 | | Chicago, Illinois, General Obligation Bonds, Variable Rate Demand Obligations, Tender Option Bond Trust Series 26W, 0.290%, 1/01/37 (6) | 1/17 at 100.00 | A–1+ | | 3,000,000 | |
| | | | North Carolina – 0.2% (0.1% of Total Investments) | | | | | |
| | 2,500 | | Sampson County, North Carolina, Certificates of Participation, Series 2006, Variable Rate Demand Obligations, Series 112, 0.330%, 6/01/34 (6) | No Opt. Call | A–1 | | 2,500,000 | |
| $ | 8,782 | | Total Short-Term Investments (cost $8,782,000) | | | | 8,782,000 | |
| | | | Total Investments (cost $2,123,130,889) – 154.6% | | | | 2,204,585,799 | |
| | | | Floating Rate Obligations – (9.5)% | | | | (134,833,333 | ) |
| | | | Other Assets Less Liabilities – 1.5% | | | | 21,491,843 | |
| | | | Auction Rate Preferred Shares, at Liquidation Value – (46.6)% (7) | | | | (664,825,000 | ) |
| | | | Net Assets Applicable to Common Shares – 100% | | | $ | 1,426,419,309 | |
| | | The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. |
| (1) | | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. |
| (2) | | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| (4) | | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. |
| (5) | | The Fund’s Adviser has concluded this issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records. |
| (6) | | Investment has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. The rate disclosed is that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. |
| (7) | | Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments is 30.2%. |
| N/R | | Not rated. |
| WI/DD | | Purchased on a when-issued or delayed delivery basis. |
| (ETM) | | Escrowed to maturity. |
| (IF) | | Inverse floating rate investment. |
| (UB) | | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information. |
See accompanying notes to financial statements.
| | | Nuveen Premier Insured Municipal Income Fund, Inc. |
| NIF | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Alabama – 0.8% (0.5% of Total Investments) | | | | | |
| $ | 2,200 | | Auburn, Alabama, General Obligation Warrants, Series 2005, 5.000%,
8/01/30 – AMBAC Insured | 8/15 at 100.00 | AA+ | $ | 2,297,680 | |
| | | | Arizona – 3.9% (2.6% of Total Investments) | | | | | |
| | 2,000 | | Arizona State, State Lottery Revenue Bonds, Series 2010A, 5.000%, 7/01/29 – AGC Insured | 1/20 at 100.00 | AA+ | | 2,089,640 | |
| | 4,370 | | Phoenix Civic Improvement Corporation, Arizona, Junior Lien Water System Revenue Bonds, Series 2005, 4.750%, 7/01/25 – NPFG Insured | 7/15 at 100.00 | AAA | | 4,627,524 | |
| | 5,000 | | Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic Plaza, Series 2005B, 0.000%, 7/01/40 – FGIC Insured | No Opt. Call | AA | | 4,630,200 | |
| | 11,370 | | Total Arizona | | | | 11,347,364 | |
| | | | Arkansas – 1.5% (1.0% of Total Investments) | | | | | |
| | 4,020 | | Northwest Community College District, Arkansas, General Obligation Bonds, Series 2005, 5.000%, 5/15/23 – AMBAC Insured | 5/15 at 100.00 | A+ | | 4,280,818 | |
| | | | California – 25.6% (17.2% of Total Investments) | | | | | |
| | 10 | | California Department of Water Resources, Water System Revenue Bonds, Central Valley Project, Series 2005AC, 5.000%, 12/01/26 (Pre-refunded 12/01/14) – NPFG Insured | 12/14 at 100.00 | AAA | | 11,658 | |
| | 990 | | California Department of Water Resources, Water System Revenue Bonds, Central Valley Project, Series 2005AC, 5.000%, 12/01/26 – NPFG Insured (UB) | 12/14 at 100.00 | AAA | | 1,090,752 | |
| | 1,250 | | California Pollution Control Financing Authority, Remarketed Revenue Bonds, Pacific Gas and Electric Company, Series 1996A, 5.350%, 12/01/16 – NPFG Insured (Alternative Minimum Tax) | 4/11 at 102.00 | A | | 1,289,275 | |
| | 1,890 | | Ceres Unified School District, Stanislaus County, California, General Obligation Bonds, Series 2002B, 0.000%, 8/01/30 – FGIC Insured | 8/12 at 34.89 | A+ | | 532,092 | |
| | 4,775 | | Clovis Unified School District, Fresno County, California, General Obligation Bonds, Series 2001A, 0.000%, 8/01/25 – FGIC Insured (ETM) | No Opt. Call | AA (4) | | 2,886,726 | |
| | 1,005 | | Folsom Cordova Unified School District, Sacramento County, California, General Obligation Bonds, School Facilities Improvement District 2, Series 2004B, 5.000%, 10/01/26 – AGM Insured | 10/14 at 100.00 | AA+ | | 1,071,049 | |
| | 1,150 | | Kern Community College District, California, General Obligation Bonds, Series 2006, 0.000%, 11/01/23 – AGM Insured | No Opt. Call | AA+ | | 607,695 | |
| | 45 | | Kern County Housing Authority, California, GNMA Guaranteed Tax-Exempt Mortgage Obligation Bonds, Series 1994A-I, 7.150%, 12/30/24 (Alternative Minimum Tax) | No Opt. Call | AAA | | 46,685 | |
| | 35 | | Kern County Housing Authority, California, GNMA Guaranteed Tax-Exempt Mortgage Obligation Bonds, Series 1994A-III, 7.450%, 6/30/25 (Alternative Minimum Tax) | No Opt. Call | AAA | | 36,392 | |
| | 3,590 | | La Verne-Grand Terrace Housing Finance Agency, California, Single Family Residential Mortgage Revenue Bonds, Series 1984A, 10.250%, 7/01/17 (ETM) | No Opt. Call | AAA | | 4,660,718 | |
| | 5,000 | | Ontario Redevelopment Financing Authority, San Bernardino County, California, Revenue Refunding Bonds, Redevelopment Project 1, Series 1995, 7.400%, 8/01/25 – NPFG Insured | No Opt. Call | A | | 5,931,350 | |
| | 8,880 | | Pomona, California, GNMA/FHLMC Collateralized Single Family Mortgage Revenue Refunding Bonds, Series 1990B, 7.500%, 8/01/23 (ETM) | No Opt. Call | AAA | | 11,789,887 | |
| | 7,315 | | San Bernardino County, California, GNMA Mortgage-Backed Securities Program Single Family Home Mortgage Revenue Bonds, Series 1988A, 8.300%, 9/01/14 (Alternative Minimum Tax) (ETM) | No Opt. Call | AAA | | 8,357,973 | |
| | 8,565 | | San Bernardino, California, GNMA Mortgage-Backed Securities Program Single Family Mortgage Revenue Refunding Bonds, Series 1990A, 7.500%, 5/01/23 (ETM) | No Opt. Call | AAA | | 11,272,225 | |
| | 4,300 | | San Francisco Airports Commission, California, Revenue Refunding Bonds, San Francisco International Airport, Second Series 2001, Issue 27A, 5.125%, 5/01/19 – NPFG Insured (Alternative Minimum Tax) | 5/11 at 100.00 | A1 | | 4,337,324 | |
| | 29,000 | | San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue Refunding Bonds, Series 1997A, 0.000%, 1/15/31 – NPFG Insured | No Opt. Call | A | | 6,188,890 | |
| | 2,000 | | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2004A, 5.250%, 8/01/19 – NPFG Insured | 8/14 at 100.00 | A | | 2,099,280 | |
Nuveen Investments 47
| | | Nuveen Premier Insured Municipal Income Fund, Inc. (continued) |
| NIF | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | California (continued) | | | | | |
| $ | 4,475 | | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30 – NPFG Insured | 8/17 at 100.00 | A | $ | 4,067,999 | |
| | 4,455 | | San Mateo County Community College District, California, General Obligation Bonds, Series 2006A, 0.000%, 9/01/21 – NPFG Insured | No Opt. Call | Aaa | | 2,762,813 | |
| | 1,815 | | University of California, General Revenue Bonds, Series 2005G, 4.750%, 5/15/31 – NPFG Insured | 5/13 at 101.00 | Aa1 | | 1,844,240 | |
| | 3,600 | | Ventura County Community College District, California, General Obligation Bonds, Series 2005B, 5.000%, 8/01/28 – NPFG Insured | 8/15 at 100.00 | AA | | 3,760,164 | |
| | 94,145 | | Total California | | | | 74,645,187 | |
| | | | Colorado – 7.6% (5.1% of Total Investments) | | | | | |
| | 3,000 | | Colorado Health Facilities Authority, Colorado, Revenue Bonds, Catholic Health Initiatives, Series 2006C-1, Trust 1090, 14.988%, 10/01/41 – AGM Insured (IF) | 4/18 at 100.00 | AA+ | | 3,297,900 | |
| | 2,500 | | Denver City and County, Colorado, Airport System Revenue Refunding Bonds, Series 2002E, 5.500%, 11/15/18 – FGIC Insured (Alternative Minimum Tax) | 11/12 at 100.00 | A+ | | 2,609,500 | |
| | 20,000 | | E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B, 0.000%, 9/01/30 – NPFG Insured | No Opt. Call | A | | 5,515,200 | |
| | 4,405 | | Garfield, Eagle and Pitkin Counties School District RE-1, Roaring Fork, Colorado, General Obligation Bonds, Series 2005A, 5.000%, 12/15/24 – AGM Insured | 12/14 at 100.00 | AA+ | | 4,709,870 | |
| | 2,065 | | Jefferson County School District R1, Colorado, General Obligation Bonds, Series 2004, 5.000%, 12/15/24 (Pre-refunded 12/15/14) – AGM Insured (UB) | 12/14 at 100.00 | AA+ (4) | | 2,399,633 | |
| | 1,390 | | Teller County School District RE-2, Woodland Park, Colorado, General Obligation Bonds, Series 2004, 5.000%, 12/01/22 – NPFG Insured | 12/14 at 100.00 | Aa2 | | 1,530,890 | |
| | 1,000 | | University of Colorado, Enterprise System Revenue Bonds, Series 2002A, 5.000%, 6/01/19 (Pre-refunded 6/01/12) – FGIC Insured | 6/12 at 100.00 | Aa2 (4) | | 1,072,700 | |
| | 1,000 | | University of Colorado, Enterprise System Revenue Bonds, Series 2005, 5.000%, 6/01/30 – FGIC Insured | 6/15 at 100.00 | Aa2 | | 1,064,580 | |
| | 35,360 | | Total Colorado | | | | 22,200,273 | |
| | | | District of Columbia – 0.2% (0.2% of Total Investments) | | | | | |
| | 665 | | Washington Convention Center Authority, District of Columbia, Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals 1606, 11.401%, 10/01/30 – AMBAC Insured (IF) | 10/16 at 100.00 | AA+ | | 693,429 | |
| | | | Florida – 5.1% (3.4% of Total Investments) | | | | | |
| | 2,285 | | Florida Municipal Loan Council, Revenue Bonds, Series 2005A, 5.000%, 2/01/23 – NPFG Insured | 2/15 at 100.00 | A | | 2,391,847 | |
| | 1,500 | | JEA, Florida, Water and Sewerage System Revenue Bonds, Series 2004A, 5.000%, 10/01/19 – FGIC Insured | 10/13 at 100.00 | Aa2 | | 1,627,845 | |
| | 4,000 | | Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2010B, 5.000%, 10/01/35 – AGM Insured | 10/20 at 100.00 | AA+ | | 4,108,520 | |
| | 4,240 | | Reedy Creek Improvement District, Florida, Utility Revenue Bonds, Series 2003-1, 5.250%, 10/01/17 – NPFG Insured | 10/13 at 100.00 | A1 | | 4,630,080 | |
| | 2,000 | | Tallahassee, Florida, Energy System Revenue Bonds, Series 2005, 5.000%, 10/01/28 – NPFG Insured | 10/15 at 100.00 | AA | | 2,078,520 | |
| | 14,025 | | Total Florida | | | | 14,836,812 | |
| | | | Georgia – 1.5% (1.0% of Total Investments) | | | | | |
| | 2,700 | | Atlanta, Georgia, Airport General Revenue Bonds, Series 2004G, 5.000%, 1/01/25 – AGM Insured | 1/15 at 100.00 | AA+ | | 2,837,079 | |
| | 1,350 | | Henry County Water and Sewerage Authority, Georgia, Revenue Bonds, Series 2005, 5.250%, 2/01/27 – BHAC Insured | No Opt. Call | AA+ | | 1,623,159 | |
| | 4,050 | | Total Georgia | | | | 4,460,238 | |
| | | | Hawaii – 0.8% (0.5% of Total Investments) | | | | | |
| | 2,250 | | Hawaii Department of Budget and Finance, Special Purpose Revenue Bonds, Hawaiian Electric Company Inc., Series 1999D, 6.150%, 1/01/20 – AMBAC Insured (Alternative Minimum Tax) | 1/11 at 100.00 | Baa1 | | 2,254,500 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Illinois – 13.1% (8.9% of Total Investments) | | | | | |
| $ | 4,000 | | Bridgeview, Illinois, General Obligation Bonds, Series 2002, 5.000%,
12/01/22 – FGIC Insured | 12/12 at 100.00 | A | $ | 4,112,800 | |
| | 8,200 | | Chicago Board of Education, Illinois, General Obligation Lease Certificates, Series 1992A, 6.250%, 1/01/15 – NPFG Insured | No Opt. Call | Aa2 | | 9,067,150 | |
| | 1,450 | | Chicago, Illinois, Third Lien General Airport Revenue Bonds, O’Hare International Airport, Series 2005A, 5.250%, 1/01/24 – NPFG Insured | 1/16 at 100.00 | A1 | | 1,533,158 | |
| | 21,860 | | Illinois Development Finance Authority, Local Government Program Revenue Bonds, Kane, Cook and DuPage Counties School District U46 – Elgin, Series 2002, 0.000%, 1/01/17 – AGM Insured | No Opt. Call | Aa3 | | 18,002,803 | |
| | 2,500 | | Illinois Municipal Electric Agency, Power Supply System Revenue Bonds, Series 2007A, 5.000%, 2/01/35 – FGIC Insured | 2/17 at 100.00 | A+ | | 2,560,475 | |
| | 200 | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Series 2002A, 5.250%, 6/15/42 – NPFG Insured | 6/12 at 101.00 | AAA | | 202,014 | |
| | 5,010 | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, McCormick Place Expansion Project, Series 1996A, 0.000%, 12/15/21 – NPFG Insured | No Opt. Call | A | | 2,905,650 | |
| | 43,220 | | Total Illinois | | | | 38,384,050 | |
| | | | Indiana – 4.1% (2.8% of Total Investments) | | | | | |
| | 2,130 | | Indiana Municipal Power Agency, Power Supply Revenue Bonds, Series 2007A, 5.000%, 1/01/42 – NPFG Insured | 1/17 at 100.00 | A+ | | 2,174,048 | |
| | | | Indiana University, Parking Facility Revenue Bonds, Series 2004: | | | | | |
| | 1,015 | | 5.250%, 11/15/19 – AMBAC Insured | 11/14 at 100.00 | Aaa | | 1,145,488 | |
| | 1,060 | | 5.250%, 11/15/20 – AMBAC Insured | 11/14 at 100.00 | Aaa | | 1,196,274 | |
| | 1,100 | | 5.250%, 11/15/21 – AMBAC Insured | 11/14 at 100.00 | Aaa | | 1,241,416 | |
| | 9,255 | | Indianapolis Local Public Improvement Bond Bank, Indiana, Series 1999E, 0.000%, 2/01/25 – AMBAC Insured | No Opt. Call | AA | | 5,240,274 | |
| | 1,000 | | Metropolitan School District Steuben County K-5 Building Corporation, Indiana, First Mortgage Bonds, Series 2003, 5.250%, 1/15/21 – AGM Insured | 7/14 at 102.00 | AA+ | | 1,094,580 | |
| | 15,560 | | Total Indiana | | | | 12,092,080 | |
| | | | Iowa – 1.2% (0.8% of Total Investments) | | | | | |
| | 3,345 | | Ames, Iowa, Hospital Revenue Refunding Bonds, Mary Greeley Medical Center, Series 2003, 5.000%, 6/15/17 – AMBAC Insured | 6/13 at 100.00 | N/R | | 3,431,937 | |
| | | | Kansas – 0.3% (0.2% of Total Investments) | | | | | |
| | 985 | | Neosho County Unified School District 413, Kansas, General Obligation Bonds, Series 2006, 5.000%, 9/01/31 – AGM Insured | 9/14 at 100.00 | Aa3 | | 1,009,280 | |
| | | | Louisiana – 2.8% (1.9% of Total Investments) | | | | | |
| | 885 | | Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge General Hospital, Series 2004, 5.250%, 7/01/24 – NPFG Insured | 7/14 at 100.00 | A | | 915,046 | |
| | 7,160 | | Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006A, 4.750%, 5/01/39 – AGM Insured (UB) | 5/16 at 100.00 | AA+ | | 7,297,114 | |
| | 8,045 | | Total Louisiana | | | | 8,212,160 | |
| | | | Maryland – 2.2% (1.5% of Total Investments) | | | | | |
| | 1,200 | | Maryland Economic Development Corporation, Student Housing Revenue Refunding Bonds, University of Maryland College Park Projects, Series 2006, 5.000%, 6/01/28 – CIFG Insured | 6/16 at 100.00 | Baa2 | | 1,209,840 | |
| | 5,000 | | Maryland Transportation Authority, Airport Parking Revenue Bonds, Baltimore-Washington International Airport Passenger Facility, Series 2002B, 5.125%, 3/01/21 – AMBAC Insured (Alternative Minimum Tax) | 3/12 at 101.00 | A2 | | 5,133,950 | |
| | 6,200 | | Total Maryland | | | | 6,343,790 | |
| | | | Massachusetts – 4.5% (3.0% of Total Investments) | | | | | |
| | 2,500 | | Massachusetts Department of Transportation, Metropolitan Highway System Revenue Bonds, Commonwealth Contract Assistance Secured, Refunding Series 2010B, 5.000%, 1/01/35 | 1/20 at 100.00 | AA | | 2,671,425 | |
| | 3,335 | | Massachusetts Health and Education Facilities Authority, Revenue Bonds, Partners HealthCare System, Tender Option Bond Trust 3627, 13.266%, 7/01/29 (IF) | 7/19 at 100.00 | AA | | 3,712,189 | |
Nuveen Investments 49
| | | Nuveen Premier Insured Municipal Income Fund, Inc. (continued) |
| NIF | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Massachusetts (continued) | | | | | |
| $ | 4,400 | | Massachusetts School Building Authority, Dedicated Sales Tax Revenue Bonds, Series 2005A, 5.000%, 8/15/23 – AGM Insured (UB) | 8/15 at 100.00 | AA+ | $ | 4,885,320 | |
| | 1,725 | | Massachusetts Water Resources Authority, General Revenue Bonds, Series 2007A, 4.500%, 8/01/46 – AGM Insured (UB) | 2/17 at 100.00 | AA+ | | 1,735,452 | |
| | 11,960 | | Total Massachusetts | | | | 13,004,386 | |
| | | | Michigan – 1.3% (0.9% of Total Investments) | | | | | |
| | 3,810 | | Michigan Housing Development Authority, GNMA Collateralized Limited Obligation Multifamily Housing Revenue Bonds, Cranbrook Apartments, Series 2001A, 5.500%, 2/20/43 (Alternative Minimum Tax) | 8/12 at 102.00 | Aaa | | 3,901,516 | |
| | | | Minnesota – 2.1% (1.4% of Total Investments) | | | | | |
| | 4,860 | | Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, Airport Revenue Bonds, Series 2001B, 5.750%, 1/01/15 – FGIC Insured (Alternative Minimum Tax) | 1/11 at 100.00 | AA– | | 4,897,859 | |
| | 130 | | Minnesota Housing Finance Agency, Rental Housing Bonds, Series 1995D, 5.950%, 2/01/18 – NPFG Insured | 2/11 at 100.00 | AA+ | | 130,546 | |
| | 1,000 | | Minnesota State, General Obligation Bonds, Various Purpose, Refunding Series 2010D, 5.000%, 8/01/18 | No Opt. Call | AAA | | 1,210,740 | |
| | 5,990 | | Total Minnesota | | | | 6,239,145 | |
| | | | Missouri – 0.7% (0.5% of Total Investments) | | | | | |
| | 2,000 | | Missouri Western State College, Auxiliary System Revenue Bonds, Series 2003, 5.000%, 10/01/21 – NPFG Insured | 10/13 at 100.00 | A | | 2,160,740 | |
| | | | Nevada – 5.8% (3.9% of Total Investments) | | | | | |
| | 2,100 | | Clark County, Nevada, General Obligation Bank Bonds, Southern Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32 – NPFG Insured | 12/12 at 100.00 | Aaa | | 2,132,340 | |
| | 900 | | Clark County, Nevada, General Obligation Bank Bonds, Southern Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32 (Pre-refunded 12/01/12) – NPFG Insured | 12/12 at 100.00 | AA+ (4) | | 984,465 | |
| | 4,715 | | Clark County, Nevada, Passenger Facility Charge Revenue Bonds, Las Vegas-McCarran International Airport, Series 2010A, 5.250%, 7/01/39 – AGM Insured | 1/20 at 100.00 | AA+ | | 4,895,443 | |
| | | | Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000: | | | | | |
| | 160 | | 0.000%, 1/01/28 – AMBAC Insured | No Opt. Call | D | | 12,342 | |
| | 2,000 | | 5.375%, 1/01/40 – AMBAC Insured (5) | 1/11 at 100.00 | D | | 420,260 | |
| | 7,990 | | Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, Reno Transportation Rail Access Corridor Project, Series 2002, 5.250%, 6/01/41 (Pre-refunded 6/01/12) – AMBAC Insured | 6/12 at 100.00 | Baa3 (4) | | 8,589,570 | |
| | 17,865 | | Total Nevada | | | | 17,034,420 | |
| | | | New Jersey – 2.5% (1.7% of Total Investments) | | | | | |
| | | | New Jersey Economic Development Authority, Revenue Bonds, Motor Vehicle Surcharge, Series 2004A: | | | | | |
| | 1,200 | | 5.000%, 7/01/22 – NPFG Insured | 7/14 at 100.00 | A | | 1,263,588 | |
| | 1,200 | | 5.000%, 7/01/23 – NPFG Insured | 7/14 at 100.00 | A | | 1,258,512 | |
| | 4,000 | | New Jersey Turnpike Authority, Revenue Bonds, Refunding Series 2005D-1, 5.250%, 1/01/26 – AGM Insured | No Opt. Call | AA+ | | 4,730,080 | |
| | 6,400 | | Total New Jersey | | | | 7,252,180 | |
| | | | New Mexico – 1.1% (0.7% of Total Investments) | | | | | |
| | 2,725 | | Rio Rancho, New Mexico, Water and Wastewater Revenue Bonds, Refunding Series 2009, 5.000%, 5/15/21 – AGM Insured | 5/19 at 100.00 | AA+ | | 3,138,165 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | New York – 6.7% (4.5% of Total Investments) | | | | | |
| $ | 1,000 | | Dormitory Authority of the State of New York, FHA-Insured Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/23 – FGIC Insured | 2/15 at 100.00 | A | $ | 1,045,760 | |
| | 2,185 | | Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series 2006A, 4.500%, 2/15/47 – NPFG Insured | 2/17 at 100.00 | A | | 2,097,731 | |
| | 5,000 | | Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2006A, 5.000%, 12/01/25 – FGIC Insured | 6/16 at 100.00 | A | | 5,346,150 | |
| | 10,000 | | Metropolitan Transportation Authority, New York, Transportation Revenue Refunding Bonds, Series 2002F, 5.250%, 11/15/27 (Pre-refunded
11/15/12) – NPFG Insured | 11/12 at 100.00 | AAA | | 10,984,300 | |
| | 18,185 | | Total New York | | | | 19,473,941 | |
| | | | North Carolina – 3.0% (2.0% of Total Investments) | | | | | |
| | 1,775 | | Charlotte, North Carolina, Water and Sewer System Refunding Bonds, Tender Option Bond Trust 2009-43W, 13.037%, 7/01/38 (IF) | 7/20 at 100.00 | AAA | | 2,285,614 | |
| | 3,100 | | North Carolina Medical Care Commission, FHA-Insured Mortgage Revenue Bonds, Betsy Johnson Regional Hospital Project, Series 2003, 5.125%, 10/01/32 – AGM Insured | 10/13 at 100.00 | AA+ | | 3,127,466 | |
| | 3,050 | | Raleigh Durham Airport Authority, North Carolina, Airport Revenue Bonds, Series 2005A, 5.000%, 5/01/22 – AMBAC Insured | 5/15 at 100.00 | Aa3 | | 3,283,966 | |
| | 7,925 | | Total North Carolina | | | | 8,697,046 | |
| | | | Ohio – 1.5% (1.0% of Total Investments) | | | | | |
| | 4,605 | | Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, Series 2006, 4.250%, 12/01/32 – AMBAC Insured (UB) | 12/16 at 100.00 | A1 | | 4,514,282 | |
| | | | Oklahoma – 1.4% (0.9% of Total Investments) | | | | | |
| | 3,500 | | Oklahoma Capitol Improvement Authority, State Facilities Revenue Bonds, Series 2005F, 5.000%, 7/01/24 – AMBAC Insured | 7/15 at 100.00 | AA | | 3,727,430 | |
| | 360 | | Oklahoma Housing Finance Agency, GNMA Collateralized Single Family Mortgage Revenue Bonds, Series 1987A, 7.997%, 8/01/18 (Alternative Minimum Tax) | No Opt. Call | AAA | | 369,853 | |
| | 3,860 | | Total Oklahoma | | | | 4,097,283 | |
| | | | Oregon – 4.1% (2.8% of Total Investments) | | | | | |
| | | | Oregon Health Sciences University, Revenue Bonds, Series 2002A: | | | | | |
| | 5,000 | | 5.000%, 7/01/26 – NPFG Insured | 1/13 at 100.00 | A1 | | 5,051,900 | |
| | 7,000 | | 5.000%, 7/01/32 – NPFG Insured | 1/13 at 100.00 | A1 | | 7,020,930 | |
| | 12,000 | | Total Oregon | | | | 12,072,830 | |
| | | | Pennsylvania – 6.8% (4.6% of Total Investments) | | | | | |
| | 1,500 | | Allegheny County Sanitary Authority, Pennsylvania, Sewerage Revenue Bonds, Series 2005A, 5.000%, 12/01/23 – NPFG Insured | 12/15 at 100.00 | A1 | | 1,559,850 | |
| | 6,000 | | Chester County Health and Educational Facilities Authority, Pennsylvania, Health System Revenue Bonds, Jefferson Health System, Series 2010A, 5.000%, 5/15/40 | 5/20 at 100.00 | AA | | 6,202,320 | |
| | 4,000 | | Commonwealth Financing Authority, Pennsylvania, State Appropriation Lease Bonds, Series 2006A, 5.000%, 6/01/26 – AGM Insured (UB) | 6/16 at 100.00 | AA+ | | 4,261,280 | |
| | 1,750 | | Delaware River Port Authority, New Jersey and Pennsylvania, Revenue Bonds, Series 2010E, 5.000%, 1/01/40 – AGM Insured | 1/20 at 100.00 | AA+ | | 1,832,478 | |
| | 2,680 | | Pennsylvania Public School Building Authority, Lease Revenue Bonds, School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 – AGM Insured (UB) | 12/16 at 100.00 | AA+ | | 2,665,260 | |
| | 1,050 | | Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 2006A, 5.000%, 12/01/26 – AMBAC Insured | 6/16 at 100.00 | Aa3 | | 1,118,859 | |
| | 2,065 | | Pittsburgh and Allegheny County Sports and Exhibition Authority, Pennsylvania, Sales Tax Revenue Bonds, Refunding Series 2010, 5.000%, 2/01/31 – AGM Insured | 8/20 at 100.00 | AA+ | | 2,170,645 | |
| | 19,045 | | Total Pennsylvania | | | | 19,810,692 | |
Nuveen Investments 51
| | | Nuveen Premier Insured Municipal Income Fund, Inc. (continued) |
| NIF | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Puerto Rico – 2.7% (1.8% of Total Investments) | | | | | |
| $ | 2,500 | | Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2005RR, 5.000%, 7/01/22 – FGIC Insured | 7/15 at 100.00 | A | $ | 2,608,700 | |
| | 1,000 | | Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, 8/01/21 – CIFG Insured | No Opt. Call | A3 | | 1,067,280 | |
| | 1,175 | | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2010C, 5.125%, 8/01/42 – AGM Insured | 8/20 at 100.00 | AA+ | | 1,238,086 | |
| | 5,000 | | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A, 0.000%, 8/01/42 – NPFG Insured | No Opt. Call | Aa2 | | 755,150 | |
| | 2,000 | | Puerto Rico, Highway Revenue Bonds, Highway and Transportation Authority, Series 2003AA, 5.500%, 7/01/17 – NPFG Insured | No Opt. Call | A | | 2,226,020 | |
| | 11,675 | | Total Puerto Rico | | | | 7,895,236 | |
| | | | Tennessee – 1.9% (1.3% of Total Investments) | | | | | |
| | 3,000 | | Blount County Public Building Authority, Tennessee, Local Government Improvement Loans, Oak Ridge General Obligation, 2005 Series B9A, Variable Rate Demand Obligations, 5.000%, 6/01/24 – AMBAC Insured | 6/15 at 100.00 | Aa2 | | 3,210,150 | |
| | 2,055 | | Memphis, Tennessee, Sanitary Sewerage System Revenue Bonds, Series 2004, 5.000%, 10/01/22 – AGM Insured | 10/14 at 100.00 | AA+ | | 2,271,268 | |
| | 5,055 | | Total Tennessee | | | | 5,481,418 | |
| | | | Texas – 12.7% (8.5% of Total Investments) | | | | | |
| | 12,500 | | Dallas-Ft. Worth International Airport, Texas, Joint Revenue Refunding and Improvement Bonds, Series 2001A, 5.500%, 11/01/35 – NPFG Insured (Alternative Minimum Tax) | 1/11 at 100.00 | A+ | | 12,505,500 | |
| | 4,040 | | Harris County, Texas, Subordinate Lien Unlimited Tax Toll Road Revenue Bonds, Tender Options Bond Trust 3028, 13.772%, 8/15/28 – AGM Insured (IF) | No Opt. Call | AAA | | 6,428,246 | |
| | | | North Harris County Regional Water Authority, Texas, Senior Water Revenue Bonds, Series 2003: | | | | | |
| | 4,565 | | 5.250%, 12/15/20 – FGIC Insured | 12/13 at 100.00 | A+ | | 5,024,239 | |
| | 4,800 | | 5.250%, 12/15/21 – FGIC Insured | 12/13 at 100.00 | A+ | | 5,275,632 | |
| | 7,600 | | San Antonio, Texas, Airport System Improvement Revenue Bonds, Series 2001, 5.375%, 7/01/16 – FGIC Insured (Alternative Minimum Tax) | 7/11 at 101.00 | A+ | | 7,800,108 | |
| | 33,505 | | Total Texas | | | | 37,033,725 | |
| | | | Utah – 2.1% (1.4% of Total Investments) | | | | | |
| | 5,760 | | Central Weber Sewer Improvement District, Utah, Sewer Revenue Bonds, Refunding Series 2010A, 5.000%, 3/01/33 – AGC Insured | 3/20 at 100.00 | AA+ | | 6,147,014 | |
| | | | Virginia – 0.1% (0.1% of Total Investments) | | | | | |
| | 250 | | Roanoke Industrial Development Authority, Virginia, Hospital Revenue Bonds, Carillion Health System Obligated Group, Series 2005B, 5.000%, 7/01/38 – AGM Insured | 7/20 at 100.00 | AA+ | | 256,835 | |
| | | | Washington – 16.9% (11.4% of Total Investments) | | | | | |
| | 5,000 | | Chelan County Public Utility District 1, Washington, Hydro Consolidated System Revenue Bonds, Series 2001B, 5.600%, 1/01/36 – NPFG Insured (Alternative Minimum Tax) (UB) | 7/11 at 101.00 | AA | | 5,035,600 | |
| | | | King County School District 405, Bellevue, Washington, General Obligation Bonds, Series 2002: | | | | | |
| | 9,285 | | 5.000%, 12/01/19 – FGIC Insured | 12/12 at 100.00 | Aaa | | 10,156,397 | |
| | 12,785 | | 5.000%, 12/01/20 – FGIC Insured | 12/12 at 100.00 | Aaa | | 13,984,872 | |
| | | | Pierce County School District 343, Dieringer, Washington, General Obligation Refunding Bonds, Series 2003: | | | | | |
| | 2,755 | | 5.250%, 12/01/18 – FGIC Insured | 6/13 at 100.00 | Aa1 | | 3,079,208 | |
| | 2,990 | | 5.250%, 12/01/19 – FGIC Insured | 6/13 at 100.00 | Aa1 | | 3,341,863 | |
| | 4,715 | | Port of Seattle, Washington, Revenue Bonds, Series 2001B, 5.625%,
4/01/17 – FGIC Insured (Alternative Minimum Tax) | 10/11 at 100.00 | Aa2 | | 4,884,646 | |
| | 895 | | Port of Seattle, Washington, Special Facility Revenue Bonds, Terminal 18, Series 1999C, 6.000%, 9/01/29 – NPFG Insured (Alternative Minimum Tax) | 3/11 at 100.00 | A | | 896,557 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Washington (continued) | | | | | |
| $ | 1,265 | | Tacoma, Washington, General Obligation Bonds, Series 2002, 5.000%, 12/01/18 – FGIC Insured | 12/12 at 100.00 | AA | $ | 1,356,648 | |
| | 1,250 | | University of Washington, General Revenue Bonds, Tender Option Bond Trust 3005, 10.703%, 6/01/31 – AMBAC Insured (IF) | 6/17 at 100.00 | Aaa | | 1,479,450 | |
| | 5,000 | | Washington State, General Obligation Bonds, Series 2001C, 5.250%, 1/01/26 (Pre-refunded 1/01/11) – AGM Insured | 1/11 at 100.00 | AA+ (4) | | 5,043,200 | |
| | 45,940 | | Total Washington | | | | 49,258,441 | |
| $ | 463,995 | | Total Investments (cost $414,983,125) – 148.6% | | | | 433,958,893 | |
| | | | Floating Rate Obligations – (7.7)% | | | | (22,365,000 | ) |
| | | | Other Assets Less Liabilities – 3.7% | | | | 10,548,915 | |
| | | | Auction Rate Preferred Shares, at Liquidation Value – (44.6)% (6) | | | | (130,125,000 | ) |
| | | | Net Assets Applicable to Common Shares – 100% | | | $ | 292,017,808 | |
| | | The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. |
| (1) | | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. |
| (2) | | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| (4) | | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. |
| (5) | | The Fund’s Adviser has concluded this issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records. |
| (6) | | Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments is 30.0%. |
| N/R | | Not rated. |
| (ETM) | | Escrowed to maturity. |
| (IF) | | Inverse floating rate investment. |
| (UB) | | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information. |
See accompanying notes to financial statements.
Nuveen Investments 53
| | | Nuveen Insured Premium Income Municipal Fund 2 |
| NPX | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Alabama – 3.7% (2.5% of Total Investments) | | | | | |
| $ | 3,750 | | Huntsville Healthcare Authority, Alabama, Revenue Bonds, Series 2005A, 5.000%, 6/01/24 – NPFG Insured | 6/15 at 100.00 | A1 | $ | 3,836,175 | |
| | | | Jefferson County, Alabama, General Obligation Warrants, Series 2004A: | | | | | |
| | 1,395 | | 5.000%, 4/01/22 – NPFG Insured | 4/14 at 100.00 | A | | 1,065,250 | |
| | 1,040 | | 5.000%, 4/01/23 – NPFG Insured | 4/14 at 100.00 | A | | 780,312 | |
| | 11,135 | | Limestone County Water and Sewer Authority, Alabama, Water Revenue Bonds, Series 2007, 4.500%, 12/01/37 – SYNCORA GTY Insured | 3/17 at 100.00 | A+ | | 10,510,327 | |
| | 2,590 | | Montgomery Water and Sewerage Board, Alabama, Water and Sewerage Revenue Bonds, Series 2005, 5.000%, 3/01/25 – AGM Insured | 3/15 at 100.00 | AAA | | 2,740,194 | |
| | 19,910 | | Total Alabama | | | | 18,932,258 | |
| | | | Arizona – 4.9% (3.2% of Total Investments) | | | | | |
| | | | Arizona State, Certificates of Participation, Series 2010A: | | | | | |
| | 2,800 | | 5.250%, 10/01/28 – AGM Insured | 10/19 at 100.00 | AA+ | | 2,969,708 | |
| | 3,500 | | 5.000%, 10/01/29 – AGM Insured | 10/19 at 100.00 | AA+ | | 3,624,705 | |
| | 5,000 | | Arizona State, State Lottery Revenue Bonds, Series 2010A, 5.000%,
7/01/29 – AGC Insured | 1/20 at 100.00 | AA+ | | 5,224,100 | |
| | 12,365 | | Phoenix Civic Improvement Corporation, Arizona, Junior Lien Water System Revenue Bonds, Series 2005, 4.750%, 7/01/27 – NPFG Insured (UB) | 7/15 at 100.00 | AAA | | 12,962,724 | |
| | 23,665 | | Total Arizona | | | | 24,781,237 | |
| | | | Arkansas – 2.6% (1.7% of Total Investments) | | | | | |
| | 5,745 | | Arkansas Development Finance Authority, State Facility Revenue Bonds, Donaghey Plaza Project, Series 2004, 5.250%, 6/01/25 – AGM Insured | 6/14 at 100.00 | AA+ | | 6,384,189 | |
| | | | University of Arkansas, Fayetteville, Revenue Bonds, Medical Sciences Campus, Series 2004B: | | | | | |
| | 2,000 | | 5.000%, 11/01/27 – NPFG Insured | 11/14 at 100.00 | Aa2 | | 2,152,420 | |
| | 2,000 | | 5.000%, 11/01/28 – NPFG Insured | 11/14 at 100.00 | Aa2 | | 2,109,680 | |
| | 2,480 | | University of Arkansas, Monticello Campus, Revenue Bonds, Series 2005, 5.000%, 12/01/35 – AMBAC Insured | 12/13 at 100.00 | Aa2 | | 2,550,581 | |
| | 12,225 | | Total Arkansas | | | | 13,196,870 | |
| | | | California – 20.1% (13.3% of Total Investments) | | | | | |
| | 22,880 | | Alameda Corridor Transportation Authority, California, Senior Lien Revenue Bonds, Series 1999A, 0.000%, 10/01/32 – NPFG Insured | No Opt. Call | A | | 5,598,278 | |
| | 20 | | California Department of Water Resources, Water System Revenue Bonds, Central Valley Project, Series 2005AC, 5.000%, 12/01/24 (Pre-refunded 12/01/14) – NPFG Insured | 12/14 at 100.00 | AAA | | 23,315 | |
| | 1,980 | | California Department of Water Resources, Water System Revenue Bonds, Central Valley Project, Series 2005AC, 5.000%, 12/01/24 – NPFG Insured | 12/14 at 100.00 | AAA | | 2,216,788 | |
| | 1,300 | | California Educational Facilities Authority, Revenue Bonds, Occidental College, Series 2005A, 5.000%, 10/01/33 – NPFG Insured | 10/15 at 100.00 | Aa3 | | 1,329,237 | |
| | 3,175 | | Ceres Unified School District, Stanislaus County, California, General Obligation Bonds, Series 2002B, 0.000%, 8/01/35 – FGIC Insured | 8/12 at 26.19 | A+ | | 628,650 | |
| | 31,200 | | Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999, 0.000%, 1/15/34 – NPFG Insured | 1/11 at 25.70 | A | | 6,623,136 | |
| | 1,735 | | Fullerton Public Financing Authority, California, Tax Allocation Revenue Bonds, Series 2005, 5.000%, 9/01/27 – AMBAC Insured | 9/15 at 100.00 | A | | 1,728,043 | |
| | 7,000 | | Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/35 – FGIC Insured | 6/15 at 100.00 | A2 | | 6,740,860 | |
| | 1,870 | | Kern Community College District, California, General Obligation Bonds, Series 2006, 0.000%, 11/01/23 – AGM Insured | No Opt. Call | AA+ | | 988,164 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | California (continued) | | | | | |
| $ | 6,520 | | Los Angeles Unified School District, California, General Obligation Bonds, Series 2005E, 5.000%, 7/01/22 – AMBAC Insured | 7/15 at 100.00 | Aa2 | $ | 6,949,994 | |
| | 4,000 | | Los Angeles Unified School District, California, General Obligation Bonds, Series 2006F, 5.000%, 7/01/24 – FGIC Insured | 7/16 at 100.00 | Aa2 | | 4,251,040 | |
| | 15,000 | | Orange County Sanitation District, California, Certificates of Participation, Series 2003, 5.250%, 2/01/30 (Pre-refunded 8/01/13) – FGIC Insured | 8/13 at 100.00 | AAA | | 16,917,300 | |
| | 1,750 | | Orange County Water District, California, Revenue Certificates of Participation, Series 2003B, 5.000%, 8/15/34 – NPFG Insured (ETM) | 8/13 at 100.00 | AAA | | 1,987,790 | |
| | 8,250 | | Orange County Water District, California, Revenue Certificates of Participation, Series 2003B, 5.000%, 8/15/34 – NPFG Insured | 8/13 at 100.00 | AAA | | 8,402,213 | |
| | 1,435 | | Pasadena Area Community College District, Los Angeles County, California, General Obligation Bonds, Series 2003A, 5.000%, 6/01/22 (Pre-refunded 6/01/13) – FGIC Insured | 6/13 at 100.00 | AA+ (4) | | 1,598,088 | |
| | 735 | | Sacramento City Financing Authority, California, Capital Improvement Revenue Bonds, Solid Waste and Redevelopment Projects, Series 1999, 5.800%, 12/01/19 – AMBAC Insured | 12/10 at 101.00 | N/R | | 744,482 | |
| | | | San Diego County, California, Certificates of Participation, Edgemoor Facility Project and Regional System, Series 2005: | | | | | |
| | 1,675 | | 5.000%, 2/01/24 – AMBAC Insured | 2/15 at 100.00 | AA+ | | 1,755,350 | |
| | 720 | | 5.000%, 2/01/25 – AMBAC Insured | 2/15 at 100.00 | AA+ | | 751,169 | |
| | | | San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue Refunding Bonds, Series 1997A: | | | | | |
| | 3,825 | | 0.000%, 1/15/32 – NPFG Insured | No Opt. Call | A | | 748,553 | |
| | 26,900 | | 0.000%, 1/15/34 – NPFG Insured | No Opt. Call | A | | 4,544,217 | |
| | 2,000 | | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2004A, 5.250%, 8/01/19 – NPFG Insured | 8/14 at 100.00 | A | | 2,099,280 | |
| | 7,845 | | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30 – NPFG Insured | 8/17 at 100.00 | A | | 7,131,497 | |
| | 5,000 | | Torrance, California, Certificates of Participation, Refunding Series 2005B, 5.000%, 6/01/24 – AMBAC Insured | No Opt. Call | AA | | 5,112,550 | |
| | 12,500 | | University of California, Revenue Bonds, Multi-Purpose Projects, Series 2003A, 5.000%, 5/15/33 – AMBAC Insured (UB) | 5/13 at 100.00 | AA | | 12,722,125 | |
| | 169,315 | | Total California | | | | 101,592,119 | |
| | | | Colorado – 9.2% (6.1% of Total Investments) | | | | | |
| | 1,940 | | Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, Adams School District 12 – Pinnacle School, Series 2003, 5.250%, 6/01/23 – SYNCORA GTY Insured | 6/13 at 100.00 | A | | 1,979,751 | |
| | 3,405 | | Colorado Educational and Cultural Facilities Authority, Revenue Bonds, Classical Academy Charter School, Series 2003, 5.250%, 12/01/23 – SYNCORA GTY Insured | 12/13 at 100.00 | A | | 3,485,426 | |
| | 16,095 | | Denver Convention Center Hotel Authority, Colorado, Senior Revenue Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/33 (Pre-refunded 12/01/13) – SYNCORA GTY Insured | 12/13 at 100.00 | N/R (4) | | 17,963,790 | |
| | 5,725 | | Denver School District 1, Colorado, General Obligation Bonds, Series 2004, 5.000%, 12/01/18 – AGM Insured | 12/13 at 100.00 | AA+ | | 6,355,036 | |
| | 12,000 | | E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B, 0.000%, 9/01/30 – NPFG Insured | No Opt. Call | A | | 3,309,120 | |
| | 1,325 | | El Paso County, Colorado, Certificates of Participation, Detention Facility Project, Series 2002B, 5.000%, 12/01/27 – AMBAC Insured | 12/12 at 100.00 | AA– | | 1,396,033 | |
| | | | Jefferson County School District R1, Colorado, General Obligation Bonds, Series 2004: | | | | | |
| | 2,500 | | 5.000%, 12/15/22 (Pre-refunded 12/15/14) – AGM Insured (UB) | 12/14 at 100.00 | AA+ (4) | | 2,905,125 | |
| | 5,125 | | 5.000%, 12/15/23 (Pre-refunded 12/15/14) – AGM Insured (UB) | 12/14 at 100.00 | AA+ (4) | | 5,955,506 | |
| | 2,000 | | 5.000%, 12/15/24 (Pre-refunded 12/15/14) – AGM Insured (UB) | 12/14 at 100.00 | AA+ (4) | | 2,324,100 | |
| | 1,000 | | University of Colorado, Enterprise System Revenue Bonds, Series 2005, 5.000%, 6/01/30 – FGIC Insured | 6/15 at 100.00 | Aa2 | | 1,064,580 | |
| | 51,115 | | Total Colorado | | | | 46,738,467 | |
Nuveen Investments 55
| | | Nuveen Insured Premium Income Municipal Fund 2 (continued) |
| NPX | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | District of Columbia – 0.2% (0.1% of Total Investments) | | | | | |
| $ | 1,065 | | Washington Convention Center Authority, District of Columbia, Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals 1606, 11.401%, 10/01/30 – AMBAC Insured (IF) | 10/16 at 100.00 | AA+ | $ | 1,110,529 | |
| | | | Florida – 2.2% (1.5% of Total Investments) | | | | | |
| | 1,000 | | Citizens Property Insurance Corporation, Florida, High-Risk Account Senior Secured Bonds Series 2010A-1, 5.000%, 6/01/16 – AGM Insured | No Opt. Call | AA+ | | 1,090,350 | |
| | 4,000 | | Florida State Board of Education, Full Faith and Credit Public Education Capital Outlay Bonds, Series 2003J, 5.000%, 6/01/22 – AMBAC Insured | 6/13 at 101.00 | AAA | | 4,375,640 | |
| | 5,720 | | Miami-Dade County, Florida, General Obligation Bonds, Series 2005, 5.000%, 7/01/33 – AGM Insured | 7/15 at 100.00 | AA+ | | 5,889,941 | |
| | 10,720 | | Total Florida | | | | 11,355,931 | |
| | | | Georgia – 3.9% (2.6% of Total Investments) | | | | | |
| | 1,535 | | Cherokee County Water and Sewerage Authority, Georgia, Revenue Bonds, Refunding Series 2007, 4.000%, 8/01/26 | 8/20 at 100.00 | Aa2 | | 1,564,150 | |
| | 4,000 | | Cobb County Development Authority, Georgia, Parking Revenue Bonds, Kennesaw State University, Series 2004, 5.000%, 7/15/24 – NPFG Insured | 7/14 at 100.00 | A1 | | 4,182,800 | |
| | 1,475 | | Columbus, Georgia, Water and Sewerage Revenue Bonds, Series 2005, 5.000%, 5/01/23 – NPFG Insured | 5/14 at 100.00 | Aa2 | | 1,559,975 | |
| | | | Municipal Electric Authority of Georgia, Combustion Turbine Revenue Bonds, Series 2003A: | | | | | |
| | 1,775 | | 5.000%, 11/01/21 – NPFG Insured | 11/13 at 100.00 | A1 | | 1,902,339 | |
| | 2,580 | | 5.000%, 11/01/22 – NPFG Insured | 11/13 at 100.00 | A1 | | 2,745,275 | |
| | 4,500 | | South Fulton Municipal Regional Water and Sewerage Authority, Georgia, Water and Sewerage Revenue Bonds, Series 2003, 5.000%, 1/01/33 (Pre-refunded 1/01/13) – NPFG Insured | 1/13 at 100.00 | N/R (4) | | 4,928,175 | |
| | 3,000 | | Valdosta and Lowndes County Hospital Authority, Georgia, Revenue Certificates, South Georgia Medical Center, Series 2002, 5.200%,
10/01/22 – AMBAC Insured | 10/12 at 101.00 | A+ | | 3,077,850 | |
| | 18,865 | | Total Georgia | | | | 19,960,564 | |
| | | | Hawaii – 4.5% (3.0% of Total Investments) | | | | | |
| | 2,375 | | Hawaii County, Hawaii, General Obligation Bonds, Series 2003A, 5.000%, 7/15/19 – AGM Insured | 7/13 at 100.00 | AA+ | | 2,594,973 | |
| | 20,000 | | Hawaii Department of Budget and Finance, Special Purpose Revenue Refunding Bonds, Hawaiian Electric Company Inc., Series 2000, 5.700%, 7/01/20 – AMBAC Insured (Alternative Minimum Tax) | 1/11 at 101.00 | Baa1 | | 20,211,400 | |
| | 22,375 | | Total Hawaii | | | | 22,806,373 | |
| | | | Idaho – 0.0% (0.0% of Total Investments) | | | | | |
| | 235 | | Idaho Housing and Finance Association, Single Family Mortgage Bonds, Series 1998E, 5.450%, 7/01/18 – AMBAC Insured (Alternative Minimum Tax) | 1/11 at 100.00 | Aaa | | 242,915 | |
| | | | Illinois – 5.9% (3.9% of Total Investments) | | | | | |
| | 1,015 | | Chicago Park District, Illinois, Limited Tax General Obligation Park Bonds, Series 2001C, 5.500%, 1/01/18 – FGIC Insured | 7/11 at 100.00 | AA | | 1,043,349 | |
| | 8,000 | | Chicago, Illinois, General Airport Revenue Bonds, O’Hare International Airport, Third Lien Refunding Series 2010C, 5.250%, 1/01/35 – AGC Insured | No Opt. Call | AA+ | | 8,415,600 | |
| | | | Illinois Health Facilities Authority, Revenue Bonds, Lutheran General Health System, Series 1993A: | | | | | |
| | 1,295 | | 6.125%, 4/01/12 – AGM Insured (ETM) | No Opt. Call | AA+ (4) | | 1,354,609 | |
| | 5,045 | | 6.250%, 4/01/18 – AGM Insured (ETM) | No Opt. Call | AA+ (4) | | 6,167,311 | |
| | 1,950 | | Illinois Health Facilities Authority, Revenue Refunding Bonds, SSM Healthcare System, Series 1992AA, 6.550%, 6/01/14 – NPFG Insured (ETM) | No Opt. Call | AAA | | 2,323,776 | |
| | 4,000 | | Illinois Municipal Electric Agency, Power Supply System Revenue Bonds, Series 2007A, 5.000%, 2/01/35 – FGIC Insured | 2/17 at 100.00 | A+ | | 4,096,760 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Illinois (continued) | | | | | |
| $ | 15,000 | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Capital Appreciation Refunding Series 2010B-1, 0.000%, 6/15/45 – AGM Insured | No Opt. Call | AAA | $ | 1,822,950 | |
| | 5,725 | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Series 2002A, 0.000%, 6/15/27 – NPFG Insured | 6/22 at 101.00 | AAA | | 4,323,577 | |
| | 130 | | Peoria, Moline and Freeport, Illinois, GNMA Collateralized Single Family Mortgage Revenue Bonds, Series 1995A, 7.600%, 4/01/27 (Alternative Minimum Tax) | 4/11 at 100.00 | AA+ | | 132,170 | |
| | 42,160 | | Total Illinois | | | | 29,680,102 | |
| | | | Indiana – 4.9% (3.2% of Total Investments) | | | | | |
| | | | Hamilton County Public Building Corporation, Indiana, First Mortgage Bonds, Series 2004: | | | | | |
| | 2,105 | | 5.000%, 8/01/23 – AGM Insured | 8/14 at 100.00 | Aaa | | 2,330,698 | |
| | 2,215 | | 5.000%, 8/01/24 – AGM Insured | 8/14 at 100.00 | Aaa | | 2,445,050 | |
| | 10,000 | | Indiana Finance Authority, Revenue Bonds, Trinity Health Care Group, Refunding Series 2009A, 5.250%, 12/01/38 | 12/19 at 100.00 | AA | | 10,584,600 | |
| | 3,730 | | Indiana Municipal Power Agency, Power Supply Revenue Bonds, Series 2007A, 5.000%, 1/01/42 – NPFG Insured | 1/17 at 100.00 | A+ | | 3,807,136 | |
| | 5,000 | | Indianapolis Local Public Improvement Bond Bank, Indiana, Waterworks Project Series 2009A, 5.500%, 1/01/38 – AGC Insured | 1/19 at 100.00 | AA+ | | 5,501,650 | |
| | 23,050 | | Total Indiana | | | | 24,669,134 | |
| | | | Kansas – 0.3% (0.2% of Total Investments) | | | | | |
| | 1,250 | | Kansas Turnpike Authority, Revenue Bonds, Series 2004A-2, 5.000%,
9/01/27 – AGM Insured | 9/14 at 101.00 | AA+ | | 1,335,363 | |
| | | | Kentucky – 1.1% (0.7% of Total Investments) | | | | | |
| | 6,010 | | Kentucky Economic Development Finance Authority, Health System Revenue Bonds, Norton Healthcare Inc., Series 2000B, 0.000%, 10/01/28 – NPFG Insured | No Opt. Call | A | | 2,149,537 | |
| | 3,040 | | Kentucky Turnpike Authority, Economic Development Road Revenue Bonds, Revitalization Project, Series 2005B, 5.000%, 7/01/25 – AMBAC Insured | 7/15 at 100.00 | AA+ | | 3,315,302 | |
| | 9,050 | | Total Kentucky | | | | 5,464,839 | |
| | | | Louisiana – 5.1% (3.4% of Total Investments) | | | | | |
| | 3,940 | | Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge General Hospital, Series 2004, 5.250%, 7/01/24 – NPFG Insured | 7/14 at 100.00 | A | | 4,073,763 | |
| | | | Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2005A: | | | | | |
| | 1,010 | | 5.000%, 5/01/25 – FGIC Insured | 5/15 at 100.00 | Aa1 | | 1,064,671 | |
| | 2,210 | | 5.000%, 5/01/26 – FGIC Insured | 5/15 at 100.00 | Aa1 | | 2,321,207 | |
| | 2,500 | | 5.000%, 5/01/27 – FGIC Insured | 5/15 at 100.00 | Aa1 | | 2,614,200 | |
| | | | Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006A: | | | | | |
| | 1,320 | | 4.750%, 5/01/39 – AGM Insured (UB) | 5/16 at 100.00 | AA+ | | 1,345,278 | |
| | 14,265 | | 4.500%, 5/01/41 – FGIC Insured (UB) | 5/16 at 100.00 | Aa1 | | 14,275,271 | |
| | 25,245 | | Total Louisiana | | | | 25,694,390 | |
| | | | Maryland – 0.8% (0.6% of Total Investments) | | | | | |
| | 1,865 | | Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue Bonds, Series 2006A, 5.250%, 9/01/26 – SYNCORA GTY Insured | 9/16 at 100.00 | Baa3 | | 1,815,969 | |
| | 2,495 | | Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Western Maryland Health, Series 2006A, 4.750%, 7/01/36 – NPFG Insured | 7/16 at 100.00 | A | | 2,460,220 | |
| | 4,360 | | Total Maryland | | | | 4,276,189 | |
Nuveen Investments 57
| | | Nuveen Insured Premium Income Municipal Fund 2 (continued) |
| NPX | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Massachusetts – 3.4% (2.2% of Total Investments) | | | | | |
| $ | 3,000 | | Massachusetts Department of Transportation, Metropolitan Highway System Revenue Bonds, Commonwealth Contract Assistance Secured, Refunding Series 2010B, 5.000%, 1/01/35 | 1/20 at 100.00 | AA | $ | 3,205,710 | |
| | 3,000 | | Massachusetts Development Finance Authority, Revenue Bonds, WGBH Educational Foundation, Series 2002A, 5.750%, 1/01/42 – AMBAC Insured | No Opt. Call | A | | 3,434,130 | |
| | 290 | | Massachusetts Port Authority, Special Facilities Revenue Bonds, Delta Air Lines Inc., Series 2001A, 5.000%, 1/01/27 – AMBAC Insured (Alternative Minimum Tax) | 1/11 at 101.00 | N/R | | 240,233 | |
| | 3,335 | | Massachusetts School Building Authority, Dedicated Sales Tax Revenue Bonds, Tender Option Bond Trust 3091, 13.034%, 8/15/37 – AMBAC Insured (IF) | 8/17 at 100.00 | AA+ | | 3,915,390 | |
| | | | Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, Series 2004: | | | | | |
| | 3,650 | | 5.250%, 1/01/22 (Pre-refunded 1/01/14) – FGIC Insured | 1/14 at 100.00 | A1 (4) | | 4,133,735 | |
| | 2,000 | | 5.250%, 1/01/24 (Pre-refunded 1/01/14) – FGIC Insured | 1/14 at 100.00 | A1 (4) | | 2,265,060 | |
| | 15,275 | | Total Massachusetts | | | | 17,194,258 | |
| | | | Michigan – 0.6% (0.4% of Total Investments) | | | | | |
| | 3,170 | | Michigan Housing Development Authority, Rental Housing Revenue Bonds, Series 1997A, 6.000%, 4/01/16 – AMBAC Insured (Alternative Minimum Tax) | 4/11 at 100.00 | AA | | 3,178,337 | |
| | | | Minnesota – 0.2% (0.1% of Total Investments) | | | | | |
| | 795 | | Minnesota Housing Finance Agency, Rental Housing Bonds, Series 1995D, 5.950%, 2/01/18 – NPFG Insured | 2/11 at 100.00 | AA+ | | 798,339 | |
| | | | Missouri – 0.5% (0.3% of Total Investments) | | | | | |
| | 1,000 | | Jackson County Reorganized School District R-7, Lees Summit, Missouri, General Obligation Bonds, Series 2006, 5.250%, 3/01/25 – NPFG Insured | 3/16 at 100.00 | Aa1 | | 1,125,270 | |
| | 405 | | Missouri Housing Development Commission, Multifamily Housing Revenue Bonds, Brookstone Village Apartments, Series 1996A, 6.000%, 12/01/16 – AGM Insured (Alternative Minimum Tax) | 12/10 at 100.00 | AAA | | 405,753 | |
| | 750 | | Missouri Western State College, Auxiliary System Revenue Bonds, Series 2003, 5.000%, 10/01/33 – NPFG Insured | 10/13 at 100.00 | A | | 762,390 | |
| | 2,155 | | Total Missouri | | | | 2,293,413 | |
| | | | Nebraska – 2.8% (1.9% of Total Investments) | | | | | |
| | 1,000 | | Nebraska Public Power District, General Revenue Bonds, Series 2005A, 5.000%, 1/01/25 – AGM Insured | 1/15 at 100.00 | AA+ | | 1,077,070 | |
| | 11,520 | | Nebraska Public Power District, Power Supply System Revenue Bonds, Series 2006A, 5.000%, 1/01/41 – FGIC Insured | 1/16 at 100.00 | A1 | | 11,889,677 | |
| | 865 | | Omaha Public Power District, Nebraska, Separate Electric System Revenue Bonds, Nebraska City 2, Series 2006A, 19.418%, 8/01/40 – AMBAC Insured (IF) | 2/17 at 100.00 | AA+ | | 1,397,935 | |
| | 13,385 | | Total Nebraska | | | | 14,364,682 | |
| | | | Nevada – 3.5% (2.3% of Total Investments) | | | | | |
| | 5,000 | | Clark County, Nevada, Industrial Development Revenue Bonds, Southwest Gas Corporation, Series 2000C, 5.950%, 12/01/38 – AMBAC Insured (Alternative Minimum Tax) | 1/11 at 102.00 | Baa2 | | 5,048,250 | |
| | 7,545 | | Clark County, Nevada, Passenger Facility Charge Revenue Bonds, Las Vegas-McCarran International Airport, Series 2010A, 5.250%, 7/01/39 – AGM Insured | 1/20 at 100.00 | AA+ | | 7,833,747 | |
| | 3,280 | | Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, Series 2004A-2, 5.125%, 7/01/24 – FGIC Insured | 7/14 at 100.00 | Aa3 | | 3,403,558 | |
| | | | Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000: | | | | | |
| | 5,055 | | 0.000%, 1/01/27 – AMBAC Insured | No Opt. Call | D | | 413,701 | |
| | 5,500 | | 5.625%, 1/01/32 – AMBAC Insured (5) | 1/12 at 100.00 | D | | 1,156,045 | |
| | 26,380 | | Total Nevada | | | | 17,855,301 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | New Jersey – 7.1% (4.7% of Total Investments) | | | | | |
| | | | Essex County Improvement Authority, New Jersey, Guaranteed Revenue Bonds, Project Consolidation, Series 2004: | | | | | |
| $ | 1,275 | | 5.125%, 10/01/21 – NPFG Insured | 10/14 at 100.00 | Aa2 | $ | 1,377,714 | |
| | 2,250 | | 5.125%, 10/01/22 – NPFG Insured | 10/14 at 100.00 | Aa2 | | 2,406,870 | |
| | 1,560 | | Mount Olive Township Board of Education, Morris County, New Jersey, General Obligation Bonds, Series 2004, 5.000%, 1/15/22 – NPFG Insured | 1/15 at 100.00 | Aa2 | | 1,667,390 | |
| | | | New Jersey Economic Development Authority, Revenue Bonds, Motor Vehicle Surcharge, Series 2004A: | | | | | |
| | 1,475 | | 5.000%, 7/01/22 – NPFG Insured | 7/14 at 100.00 | A | | 1,553,160 | |
| | 1,475 | | 5.000%, 7/01/23 – NPFG Insured | 7/14 at 100.00 | A | | 1,546,921 | |
| | 3,075 | | New Jersey Transit Corporation, Certificates of Participation Refunding, Series 2003, 5.500%, 10/01/15 – AGM Insured | No Opt. Call | AA+ | | 3,577,855 | |
| | | | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C: | | | | | |
| | 25,000 | | 0.000%, 12/15/35 – AMBAC Insured | No Opt. Call | AA– | | 5,893,750 | |
| | 10,000 | | 0.000%, 12/15/36 – AMBAC Insured | No Opt. Call | AA– | | 2,214,500 | |
| | 10,000 | | New Jersey Turnpike Authority, Revenue Bonds, Refunding Series 2005D-1, 5.250%, 1/01/26 – AGM Insured | No Opt. Call | AA+ | | 11,825,200 | |
| | 3,315 | | New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 5.000%, 1/01/25 – AGM Insured (UB) | 1/15 at 100.00 | AA+ | | 3,571,017 | |
| | 59,425 | | Total New Jersey | | | | 35,634,377 | |
| | | | New Mexico – 1.0% (0.6% of Total Investments) | | | | | |
| | | | New Mexico Finance Authority, Public Project Revolving Fund Revenue Bonds, Series 2004C: | | | | | |
| | 1,415 | | 5.000%, 6/01/22 – AMBAC Insured | 6/14 at 100.00 | AA+ | | 1,568,542 | |
| | 1,050 | | 5.000%, 6/01/24 – AMBAC Insured | 6/14 at 100.00 | AA+ | | 1,106,175 | |
| | 2,000 | | New Mexico Finance Authority, Public Project Revolving Fund Revenue Bonds, Series 2005E, 5.000%, 6/15/25 – NPFG Insured | 6/15 at 100.00 | Aa3 | | 2,169,320 | |
| | 4,465 | | Total New Mexico | | | | 4,844,037 | |
| | | | New York – 7.5% (4.9% of Total Investments) | | | | | |
| | 1,120 | | Dormitory Authority of the State of New York, FHA-Insured Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/23 – FGIC Insured | 2/15 at 100.00 | A | | 1,171,251 | |
| | 1,000 | | Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 – AMBAC Insured | 3/15 at 100.00 | AAA | | 1,087,830 | |
| | 4,055 | | Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series 2006A, 4.500%, 2/15/47 – NPFG Insured | 2/17 at 100.00 | A | | 3,893,043 | |
| | | | Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2006A: | | | | | |
| | 10,675 | | 5.000%, 12/01/23 – FGIC Insured | 6/16 at 100.00 | A | | 11,533,484 | |
| | 5,000 | | 5.000%, 12/01/25 – FGIC Insured | 6/16 at 100.00 | A | | 5,346,150 | |
| | 2,700 | | Long Island Power Authority, New York, Electric System Revenue Bonds, Series 2006F, 4.250%, 5/01/33 – NPFG Insured | 11/16 at 100.00 | A | | 2,693,790 | |
| | 5,000 | | New York City, New York, General Obligation Bonds, Fiscal Series 2004E, 5.000%, 11/01/21 – AGM Insured | 11/14 at 100.00 | AA+ | | 5,632,800 | |
| | 1,540 | | New York Convention Center Development Corporation, Hotel Unit Fee Revenue Bonds, Series 2005, Trust 2364, 16.664%, 11/15/44 – AMBAC Insured (IF) | 11/15 at 100.00 | AA+ | | 1,791,636 | |
| | 495 | | New York State Housing Finance Agency, Mortgage Revenue Refunding Bonds, Housing Project, Series 1996A, 6.125%, 11/01/20 – AGM Insured | 11/10 at 100.00 | AA+ | | 495,812 | |
| | 3,770 | | New York State Thruway Authority, General Revenue Bonds, Series 2005G, 5.000%, 1/01/25 – AGM Insured | 7/15 at 100.00 | AA+ | | 4,041,025 | |
| | 35,355 | | Total New York | | | | 37,686,821 | |
Nuveen Investments 59
| | | Nuveen Insured Premium Income Municipal Fund 2 (continued) |
| NPX | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | North Carolina – 2.3% (1.5% of Total Investments) | | | | | |
| $ | 1,250 | | Appalachian State University, North Carolina, Revenue Bonds, Series 2005, 5.000%, 7/15/30 – NPFG Insured | 7/15 at 100.00 | Aa3 | $ | 1,289,300 | |
| | 1,780 | | Charlotte, North Carolina, Water and Sewer System Refunding Bonds, Tender Option Bond Trust 2009-43W, 13.037%, 7/01/38 (IF) | 7/20 at 100.00 | AAA | | 2,292,053 | |
| | | | Mooresville, North Carolina, Enterprise System Revenue Bonds, Series 2004: | | | | | |
| | 2,225 | | 5.000%, 5/01/23 – FGIC Insured | 5/14 at 100.00 | AA– | | 2,329,486 | |
| | 2,335 | | 5.000%, 5/01/24 – FGIC Insured | 5/14 at 100.00 | AA– | | 2,436,269 | |
| | 2,900 | | Raleigh Durham Airport Authority, North Carolina, Airport Revenue Bonds, Series 2005A, 5.000%, 5/01/21 – AMBAC Insured | 5/15 at 100.00 | Aa3 | | 3,135,103 | |
| | 10,490 | | Total North Carolina | | | | 11,482,211 | |
| | | | North Dakota – 3.7% (2.5% of Total Investments) | | | | | |
| | 10,715 | | Fargo, North Dakota, Health System Revenue Bonds, MeritCare Obligated Group, Series 2000A, 5.600%, 6/01/21 – AGM Insured | 12/10 at 101.00 | AA+ | | 10,839,080 | |
| | 8,000 | | North Dakota, Student Loan Trust Revenue Bonds, Series 2000B, 5.850%, 12/01/25 – AMBAC Insured (Alternative Minimum Tax) | 12/10 at 100.00 | Aaa | | 8,033,440 | |
| | 18,715 | | Total North Dakota | | | | 18,872,520 | |
| | | | Ohio – 1.7% (1.1% of Total Investments) | | | | | |
| | 7,825 | | Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, Series 2006, 4.250%, 12/01/32 – AMBAC Insured | 12/16 at 100.00 | A1 | | 7,670,848 | |
| | 700 | | Shaker Heights, Ohio, General Obligation Bonds, Series 2003, 5.250%, 12/01/26 – AMBAC Insured | 12/13 at 100.00 | AA+ | | 762,902 | |
| | 8,525 | | Total Ohio | | | | 8,433,750 | |
| | | | Oklahoma – 0.3% (0.2% of Total Investments) | | | | | |
| | 1,500 | | Oklahoma Capitol Improvement Authority, State Facilities Revenue Bonds, Series 2005F, 5.000%, 7/01/24 – AMBAC Insured | 7/15 at 100.00 | AA | | 1,597,470 | |
| | | | Oregon – 0.3% (0.2% of Total Investments) | | | | | |
| | 1,520 | | Portland Housing Authority, Oregon, Multifamily Housing Revenue Bonds, Lovejoy Station Apartments, Series 2000, 6.000%, 7/01/33 – NPFG Insured (Alternative Minimum Tax) | 1/11 at 100.00 | Baa1 | | 1,521,368 | |
| | | | Pennsylvania – 11.3% (7.5% of Total Investments) | | | | | |
| | 12,620 | | Allegheny County Hospital Development Authority, Pennsylvania, Insured Revenue Bonds, West Penn Allegheny Health System, Series 2000A, 6.500%, 11/15/30 (Pre-refunded 11/15/10) – NPFG Insured | 11/10 at 102.00 | AAA | | 12,907,610 | |
| | 2,000 | | Allegheny County Sanitary Authority, Pennsylvania, Sewerage Revenue Bonds, Series 2005A, 5.000%, 12/01/23 – NPFG Insured | 12/15 at 100.00 | A1 | | 2,079,800 | |
| | 4,235 | | Delaware County Authority, Pennsylvania, Revenue Bonds, Villanova University, Series 2006, 5.000%, 8/01/24 – AMBAC Insured | 8/16 at 100.00 | A1 | | 4,529,163 | |
| | 1,750 | | Delaware River Port Authority, New Jersey and Pennsylvania, Revenue Bonds, Series 2010E, 5.000%, 1/01/40 – AGM Insured | 1/20 at 100.00 | AA+ | | 1,832,478 | |
| | 1,015 | | Montgomery County Industrial Development Authority, Pennsylvania, FHA Insured Mortgage Revenue Bonds, New Regional Medical Center Project, Series 2010, 5.375%, 8/01/38 | 8/20 at 100.00 | AA | | 1,072,926 | |
| | 5,235 | | Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Drexel University, Series 2005A, 5.000%, 5/01/28 – NPFG Insured | 5/15 at 100.00 | A+ | | 5,418,330 | |
| | 4,585 | | Pennsylvania Public School Building Authority, Lease Revenue Bonds, School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 – AGM Insured (UB) | 12/16 at 100.00 | AA+ | | 4,559,783 | |
| | 1,050 | | Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 2006A, 5.000%, 12/01/26 – AMBAC Insured | 6/16 at 100.00 | Aa3 | | 1,118,859 | |
| | | | Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General Ordinance, Fifth Series 2004A-1: | | | | | |
| | 5,235 | | 5.000%, 9/01/24 – AGM Insured | 9/14 at 100.00 | AA+ | | 5,414,613 | |
| | 3,000 | | 5.000%, 9/01/25 – AGM Insured | 9/14 at 100.00 | AA+ | | 3,094,290 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Pennsylvania (continued) | | | | | |
| $ | 2,985 | | Philadelphia Hospitals and Higher Education Facilities Authority, Pennsylvania, Health System Revenue Bonds, Jefferson Health System, Series 2010B, 5.000%, 5/15/40 | 5/20 at 100.00 | AA | $ | 3,078,669 | |
| | 2,360 | | Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, Series 1997A, 5.125%, 8/01/27 – AMBAC Insured (ETM) | 1/11 at 100.00 | AAA | | 2,428,747 | |
| | 3,785 | | Reading School District, Berks County, Pennsylvania, General Obligation Bonds, Series 2005, 5.000%, 1/15/25 – AGM Insured (UB) | 1/16 at 100.00 | AA+ | | 4,048,474 | |
| | 1,455 | | Solebury Township, Pennsylvania, General Obligation Bonds, Series 2005, 5.000%, 12/15/25 – AMBAC Insured | 6/15 at 100.00 | Aa3 | | 1,545,850 | |
| | 3,650 | | State Public School Building Authority, Pennsylvania, Lease Revenue Bonds, Philadelphia School District, Series 2003, 5.000%, 6/01/29 (Pre-refunded 6/01/13) – AGM Insured | 6/13 at 100.00 | AAA | | 4,050,040 | |
| | 54,960 | | Total Pennsylvania | | | | 57,179,632 | |
| | | | Puerto Rico – 1.5% (1.0% of Total Investments) | | | | | |
| | 2,500 | | Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2005RR, 5.000%, 7/01/22 – FGIC Insured | 7/15 at 100.00 | A | | 2,608,700 | |
| | 4,705 | | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2010C, 5.125%, 8/01/42 – AGM Insured | 8/20 at 100.00 | AA+ | | 4,957,611 | |
| | 7,205 | | Total Puerto Rico | | | | 7,566,311 | |
| | | | South Carolina – 0.4% (0.3% of Total Investments) | | | | | |
| | 1,955 | | Greenville County School District, South Carolina, Installment Purchase Revenue Bonds, Series 2006, 5.000%, 12/01/28 – AGM Insured | 12/16 at 100.00 | AA+ | | 2,073,219 | |
| | | | Texas – 14.3% (9.4% of Total Investments) | | | | | |
| | | | Corpus Christi, Texas, Utility System Revenue Bonds, Series 2004: | | | | | |
| | 3,475 | | 5.000%, 7/15/22 – AGM Insured (UB) | 7/14 at 100.00 | AA+ | | 3,835,358 | |
| | 3,645 | | 5.000%, 7/15/23 – AGM Insured (UB) | 7/14 at 100.00 | AA+ | | 4,016,932 | |
| | 10,000 | | Dallas, Texas, Waterworks and Sewer System Revenue Bonds, Series 2007, 4.375%, 10/01/32 – AMBAC Insured (UB) | 10/17 at 100.00 | AAA | | 10,106,900 | |
| | 12,500 | | Dallas-Ft. Worth International Airport, Texas, Joint Revenue Refunding and Improvement Bonds, Series 2001A, 5.500%, 11/01/35 – NPFG Insured (Alternative Minimum Tax) | 1/11 at 100.00 | A+ | | 12,505,500 | |
| | 5,000 | | Harris County Hospital District, Texas, Revenue Bonds, Series 2007A, 5.250%, 2/15/42 – NPFG Insured | 2/17 at 100.00 | A1 | | 5,029,950 | |
| | 500 | | Houston, Texas, Subordinate Lien Airport System Revenue Bonds, Series 2000B, 5.450%, 7/01/24 – AGM Insured | No Opt. Call | AA+ | | 560,100 | |
| | 4,485 | | Lower Colorado River Authority, Texas, Contract Revenue Refunding Bonds, Transmission Services Corporation, Series 2003B, 5.000%, 5/15/21 – AGM Insured | 5/12 at 100.00 | AA+ | | 4,711,896 | |
| | 10,000 | | Lower Colorado River Authority, Texas, Contract Revenue Refunding Bonds, Transmission Services Corporation, Series 2003C, 5.000%, 5/15/33 – AMBAC Insured | 5/13 at 100.00 | A | | 10,116,300 | |
| | 4,151 | | Panhandle Regional Housing Finance Corporation, Texas, GNMA Collateralized Multifamily Housing Mortgage Revenue Bonds, Renaissance of Amarillo Apartments, Series 2001A, 6.650%, 7/20/42 | 7/12 at 105.00 | Aaa | | 4,419,362 | |
| | | | Tarrant County Health Facilities Development Corporation, Texas, Hospital Revenue Bonds, Cook Children’s Healthcare System, Series 2000A: | | | | | |
| | 6,725 | | 5.750%, 12/01/17 (Pre-refunded 12/01/10) – AGM Insured | 12/10 at 101.00 | AA+ (4) | | 6,824,194 | |
| | 1,170 | | 5.750%, 12/01/24 (Pre-refunded 12/01/10) – AGM Insured | 12/10 at 101.00 | AA+ (4) | | 1,187,258 | |
| | 6,330 | | 5.750%, 12/01/24 (Pre-refunded 12/01/10) – AGM Insured | 12/10 at 101.00 | AA+ (4) | | 6,423,368 | |
| | 85 | | Texas State University System, Financing Revenue Refunding Bonds, Series 2002, 5.000%, 3/15/18 – AGM Insured | No Opt. Call | AA+ | | 89,498 | |
| | 2,215 | | Texas State University System, Financing Revenue Refunding Bonds, Series 2002, 5.000%, 3/15/18 (Pre-refunded 3/15/12) – AGM Insured | 3/12 at 100.00 | AA+ (4) | | 2,347,147 | |
| | 70,281 | | Total Texas | | | | 72,173,763 | |
Nuveen Investments 61
| | | Nuveen Insured Premium Income Municipal Fund 2 (continued) |
| NPX | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Utah – 2.3% (1.5% of Total Investments) | | | | | |
| $ | 8,600 | | Intermountain Power Agency, Utah, Power Supply Revenue Refunding Bonds, Series 2003A, 5.000%, 7/01/18 – AGM Insured (UB) | 7/13 at 100.00 | AA+ | $ | 9,328,764 | |
| | 2,385 | | Mountain Regional Water Special Service District, Utah, Water Revenue Bonds, Series 2003, 5.000%, 12/15/33 – NPFG Insured | 12/13 at 100.00 | A+ | | 2,397,187 | |
| | 10,985 | | Total Utah | | | | 11,725,951 | |
| | | | Vermont – 0.3% (0.2% of Total Investments) | | | | | |
| | 1,320 | | Vermont Educational and Health Buildings Financing Agency, Revenue Bonds, Fletcher Allen Health Care Inc., Series 2000A, 6.000%, 12/01/23 – AMBAC Insured | 12/10 at 101.00 | Baa1 | | 1,346,902 | |
| | | | Virginia – 2.7% (1.7% of Total Investments) | | | | | |
| | | | Greater Richmond Convention Center Authority, Virginia, Hotel Tax Revenue Bonds, Series 2005: | | | | | |
| | 5,880 | | 5.000%, 6/15/20 – NPFG Insured | 6/15 at 100.00 | A | | 6,296,422 | |
| | 5,000 | | 5.000%, 6/15/22 – NPFG Insured | 6/15 at 100.00 | A | | 5,274,600 | |
| | | | Loudoun County Industrial Development Authority, Virginia, Lease Revenue Bonds, Public Safety Facilities, Series 2003A: | | | | | |
| | 1,150 | | 5.250%, 12/15/22 – AGM Insured | 6/14 at 100.00 | AA+ | | 1,281,411 | |
| | 500 | | 5.250%, 12/15/23 – AGM Insured | 6/14 at 100.00 | AA+ | | 557,135 | |
| | 12,530 | | Total Virginia | | | | 13,409,568 | |
| | | | Washington – 7.0% (4.6% of Total Investments) | | | | | |
| | 10,000 | | Chelan County Public Utility District 1, Washington, Hydro Consolidated System Revenue Bonds, Series 2001B, 5.600%, 1/01/36 – NPFG Insured (Alternative Minimum Tax) | 7/11 at 101.00 | AA | | 10,071,200 | |
| | 1,370 | | Clark County School District 101, La Center, Washington, General Obligation Bonds, Series 2002, 5.000%, 12/01/22 – AGM Insured | 12/12 at 100.00 | Aa1 | | 1,498,575 | |
| | 3,000 | | King County, Washington, Sewer Revenue Bonds, Series 2007, 5.000%, 1/01/42 – AGM Insured | 7/17 at 100.00 | AA+ | | 3,142,680 | |
| | 1,545 | | Tacoma, Washington, General Obligation Bonds, Series 2004, 5.000%, 12/01/19 – NPFG Insured | 12/14 at 100.00 | AA | | 1,675,862 | |
| | 3,950 | | Washington State Health Care Facilities Authority, Revenue Bonds, Swedish Health Services, Series 1998, 5.125%, 11/15/22 – AMBAC Insured | 11/10 at 100.00 | A2 | | 3,960,902 | |
| | 6,200 | | Washington State, General Obligation Purpose Bonds, Series 2003A, 5.000%, 7/01/20 – FGIC Insured | 7/12 at 100.00 | AA+ | | 6,667,790 | |
| | 10,855 | | Washington, General Obligation Bonds, Series 2000S-5, 0.000%, 1/01/20 – FGIC Insured | No Opt. Call | AA+ | | 8,120,083 | |
| | 36,920 | | Total Washington | | | | 35,137,092 | |
| | | | West Virginia – 1.6% (1.0% of Total Investments) | | | | | |
| | 8,000 | | Pleasants County, West Virginia, Pollution Control Revenue Bonds, Monongahela Power Company Pleasants Station Project, Series 1995C, 6.150%, 5/01/15 – AMBAC Insured | 11/10 at 100.00 | BBB– | | 8,015,280 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Wisconsin – 5.9% (3.9% of Total Investments) | | | | | |
| $ | 7,000 | | La Crosse, Wisconsin, Resource Recovery Revenue Refunding Bonds, Northern States Power Company Project, Series 1996, 6.000%, 11/01/21 – NPFG Insured (Alternative Minimum Tax) | No Opt. Call | Aaa | $ | 8,028,090 | |
| | 12,750 | | Milwaukee County, Wisconsin, Airport Revenue Bonds, Series 2000A, 5.750%, 12/01/25 – FGIC Insured (Alternative Minimum Tax) | 12/10 at 100.00 | A1 | | 12,802,145 | |
| | 4,940 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Sinai Samaritan Medical Center Inc., Series 1996, 5.750%, 8/15/16 – NPFG Insured | 2/11 at 100.00 | A | | 4,946,815 | |
| | 3,775 | | Wisconsin State, General Obligation Bonds, Series 2006A, 4.750%, 5/01/25 – FGIC Insured | 5/16 at 100.00 | AA | | 4,033,814 | |
| | 28,465 | | Total Wisconsin | | | | 29,810,864 | |
| $ | 868,381 | | Total Investments (cost $747,004,953) – 151.6% | | | | 766,032,746 | |
| | �� | | Floating Rate Obligations – (11.5)% | | | | (57,980,000 | ) |
| | | | Variable Rate Demand Preferred Shares, at Liquidation Value – (43.3%) (6) | | | | (219,000,000 | ) |
| | | | Other Assets Less Liabilities – 3.2% | | | | 16,279,076 | |
| | | | Net Assets Applicable to Common Shares – 100% | | | $ | 505,331,822 | |
| | | The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. |
| (1) | | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. |
| (2) | | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| (4) | | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. |
| (5) | | The Fund’s Adviser has concluded this issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records. |
| (6) | | Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 28.6%. |
| N/R | | Not rated. |
| (ETM) | | Escrowed to maturity. |
| (IF) | | Inverse floating rate investment. |
| (UB) | | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information. |
See accompanying notes to financial statements.
Nuveen Investments 63
| | | Nuveen Insured Dividend Advantage Municipal Fund |
| NVG | | Portfolio of Investments October 31, 2010 |
| | | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Municipal Bonds – 148.2% (99.8% of Total Investments) | | | | | |
| | | | Alabama – 2.0% (1.3% of Total Investments) | | | | | |
| $ | 5,310 | | Athens, Alabama, Water and Sewerage Revenue Warrants, Series 2002, 5.300%, 5/01/32 – NPFG Insured | 5/12 at 101.00 | A+ | $ | 5,581,182 | |
| | 3,045 | | Hoover, Alabama, General Obligation Bonds, Series 2003, 5.000%, 3/01/20 – NPFG Insured | 3/12 at 101.00 | AA+ | | 3,225,690 | |
| | 8,355 | | Total Alabama | | | | 8,806,872 | |
| | | | Alaska – 3.6% (2.4% of Total Investments) | | | | | |
| | 15,000 | | Alaska, International Airport System Revenue Bonds, Series 2002B, 5.250%, 10/01/27 (Pre-refunded 10/01/12) – AMBAC Insured | 10/12 at 100.00 | Aa3 (4) | | 16,326,450 | |
| | | | Arizona – 2.3% (1.6% of Total Investments) | | | | | |
| | 5,000 | | Phoenix, Arizona, Civic Improvement Corporation, Senior Lien Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 – FGIC Insured (Alternative Minimum Tax) | 7/12 at 100.00 | AA– | | 5,026,200 | |
| | 6,000 | | Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic Plaza, Series 2005B, 0.000%, 7/01/37 – FGIC Insured | No Opt. Call | AA | | 5,565,900 | |
| | 11,000 | | Total Arizona | | | | 10,592,100 | |
| | | | California – 13.3% (9.0% of Total Investments) | | | | | |
| | 2,000 | | Alameda Corridor Transportation Authority, California, Subordinate Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/20 – AMBAC Insured | No Opt. Call | A– | | 1,132,140 | |
| | 6,160 | | Alhambra Unified School District, Los Angeles County, California, General Obligation Bonds, Capital Appreciation Series 2009B, 0.000%, 8/01/30 – AGC Insured | No Opt. Call | AA+ | | 1,915,883 | |
| | | | California Educational Facilities Authority, Revenue Bonds, Occidental College, Series 2005A: | | | | | |
| | 1,485 | | 5.000%, 10/01/26 – NPFG Insured | 10/15 at 100.00 | Aa3 | | 1,552,389 | |
| | 1,565 | | 5.000%, 10/01/27 – NPFG Insured | 10/15 at 100.00 | Aa3 | | 1,629,635 | |
| | 2,000 | | Ceres Unified School District, Stanislaus County, California, General Obligation Bonds, Series 2002B, 0.000%, 8/01/33 – FGIC Insured | 8/12 at 29.17 | A+ | | 454,360 | |
| | 2,425 | | Fullerton Public Financing Authority, California, Tax Allocation Revenue Bonds, Series 2005, 5.000%, 9/01/27 – AMBAC Insured | 9/15 at 100.00 | A | | 2,415,276 | |
| | 18,665 | | Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/35 – FGIC Insured | 6/15 at 100.00 | A2 | | 17,974,022 | |
| | | | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1: | | | | | |
| | 1,000 | | 5.750%, 6/01/47 | 6/17 at 100.00 | BBB | | 799,850 | |
| | 365 | | 5.125%, 6/01/47 | 6/17 at 100.00 | BBB | | 263,059 | |
| | 1,990 | | Kern Community College District, California, General Obligation Bonds, Series 2006, 0.000%, 11/01/25 – AGM Insured | No Opt. Call | AA+ | | 933,171 | |
| | 7,935 | | Los Angeles, California, Certificates of Participation, Series 2002, 5.300%, 4/01/32 – AMBAC Insured | 4/12 at 100.00 | A+ | | 7,999,432 | |
| | 2,220 | | Northern California Power Agency, Revenue Refunding Bonds, Hydroelectric Project 1, Series 1998A, 5.200%, 7/01/32 – NPFG Insured | 1/11 at 100.00 | A | | 2,220,444 | |
| | | | Oceanside Unified School District, San Diego County, California, General Obligation Bonds, Series 2008A and 2008B: | | | | | |
| | 5,905 | | 0.000%, 8/01/26 – AGC Insured | No Opt. Call | AA+ | | 2,511,692 | |
| | 2,220 | | 0.000%, 8/01/28 – AGC Insured | No Opt. Call | AA+ | | 821,222 | |
| | 2,600 | | Palomar Pomerado Health, California, General Obligation Bonds, Series 2009A, 0.000%, 8/01/38 – AGC Insured | 8/29 at 100.00 | AA+ | | 1,712,516 | |
| | 2,320 | | Sacramento Municipal Utility District, California, Electric Revenue Bonds, Series 2001P, 5.250%, 8/15/18 – AGM Insured | 8/11 at 100.00 | AA+ | | 2,390,992 | |
| | | | San Francisco Unified School District, California, General Obligation Bonds, Series 2007A: | | | | | |
| | 1,000 | | 3.000%, 6/15/25 – AGM Insured | 6/17 at 100.00 | AA+ | | 908,200 | |
| | 1,180 | | 3.000%, 6/15/26 – AGM Insured | 6/17 at 100.00 | AA+ | | 1,048,265 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | California (continued) | | | | | |
| $ | 6,720 | | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30 – NPFG Insured | 8/17 at 100.00 | A | $ | 6,108,816 | |
| | 4,275 | | Sequoia Union High School District, San Mateo County, California, General Obligation Bonds, Series 2006, 3.500%, 7/01/29 – AGM Insured | 7/14 at 102.00 | Aa1 | | 3,821,081 | |
| | 1,690 | | Ventura County Community College District, California, General Obligation Bonds, Series 2005B, 5.000%, 8/01/28 – NPFG Insured | 8/15 at 100.00 | AA | | 1,765,188 | |
| | 75,720 | | Total California | | | | 60,377,633 | |
| | | | Colorado – 5.6% (3.8% of Total Investments) | | | | | |
| | 17,300 | | Adams County, Colorado, FHA-Insured Mortgage Revenue Bonds, Platte Valley Medical Center, Series 2005, 5.000%, 8/01/24 – NPFG Insured | 8/15 at 100.00 | A | | 17,840,971 | |
| | 750 | | Arkansas River Power Authority, Colorado, Power Revenue Bonds, Series 2006, 5.250%, 10/01/32 – SYNCORA GTY Insured | 10/16 at 100.00 | BBB | | 743,700 | |
| | 17,000 | | E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B, 0.000%, 9/01/25 – NPFG Insured | No Opt. Call | A | | 6,879,900 | |
| | 35,050 | | Total Colorado | | | | 25,464,571 | |
| | | | District of Columbia – 1.7% (1.2% of Total Investments) | | | | | |
| | 6,805 | | District of Columbia, Revenue Bonds, Georgetown University, Series 2007A, 4.500%, 4/01/42 – AMBAC Insured | 4/17 at 100.00 | A– | | 6,793,432 | |
| | 935 | | Washington Convention Center Authority, District of Columbia, Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals 1606, 11.401%, 10/01/30 – AMBAC Insured (IF) | 10/16 at 100.00 | AA+ | | 974,971 | |
| | 7,740 | | Total District of Columbia | | | | 7,768,403 | |
| | | | Florida – 11.6% (7.8% of Total Investments) | | | | | |
| | | | Florida Municipal Loan Council, Revenue Bonds, Series 2003B: | | | | | |
| | 2,305 | | 5.250%, 12/01/17 – NPFG Insured | 12/13 at 100.00 | A | | 2,490,829 | |
| | 1,480 | | 5.250%, 12/01/18 – NPFG Insured | 12/13 at 100.00 | A | | 1,587,226 | |
| | 11,600 | | Greater Orlando Aviation Authority, Florida, Airport Facilities Revenue Bonds, Series 2002B, 5.125%, 10/01/21 – AGM Insured (Alternative Minimum Tax) | 10/12 at 100.00 | AA+ | | 11,822,604 | |
| | 8,155 | | Lee County, Florida, Solid Waste System Revenue Refunding Bonds, Series 2001, 5.625%, 10/01/13 – NPFG Insured (Alternative Minimum Tax) | 10/11 at 100.00 | A3 | | 8,428,600 | |
| | | | Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2002: | | | | | |
| | 7,165 | | 5.625%, 10/01/15 – FGIC Insured (Alternative Minimum Tax) | 10/12 at 100.00 | A | | 7,640,756 | |
| | 5,600 | | 5.750%, 10/01/16 – FGIC Insured (Alternative Minimum Tax) | 10/12 at 100.00 | A | | 5,945,576 | |
| | 10,000 | | 5.125%, 10/01/21 – FGIC Insured (Alternative Minimum Tax) | 10/12 at 100.00 | A | | 10,294,600 | |
| | 2,000 | | 5.250%, 10/01/22 – FGIC Insured (Alternative Minimum Tax) | 10/12 at 100.00 | A | | 2,057,320 | |
| | 1,000 | | South Miami Health Facilities Authority, Florida, Hospital Revenue, Baptist Health System Obligation Group, Series 2007, 5.000%, 8/15/42 (UB) | 8/17 at 100.00 | AA | | 1,011,990 | |
| | 1,000 | | Tallahassee, Florida, Energy System Revenue Bonds, Series 2005, 5.000%, 10/01/28 – NPFG Insured | 10/15 at 100.00 | AA | | 1,039,260 | |
| | 50,305 | | Total Florida | | | | 52,318,761 | |
| | | | Georgia – 2.2% (1.5% of Total Investments) | | | | | |
| | 6,925 | | Atlanta and Fulton County Recreation Authority, Georgia, Guaranteed Revenue Bonds, Park Improvement, Series 2005A, 5.000%, 12/01/30 – NPFG Insured | 12/15 at 100.00 | Aa2 | | 7,235,863 | |
| | 1,000 | | Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 2004, 5.000%, 11/01/22 – AGM Insured | 11/14 at 100.00 | AA+ | | 1,054,460 | |
| | 1,695 | | Georgia Housing and Finance Authority, Single Family Mortgage Bonds, Series 2002B-2, 5.500%, 6/01/32 (Alternative Minimum Tax) | 12/11 at 100.00 | AAA | | 1,708,441 | |
| | 9,620 | | Total Georgia | | | | 9,998,764 | |
| | | | Idaho – 1.0% (0.7% of Total Investments) | | | | | |
| | | | Idaho Housing and Finance Association, Grant and Revenue Anticipation Bonds, Federal Highway Trust Funds, Series 2006: | | | | | |
| | 3,000 | | 5.000%, 7/15/23 – NPFG Insured | 7/16 at 100.00 | Aa2 | | 3,239,670 | |
| | 1,130 | | 5.000%, 7/15/24 – NPFG Insured | 7/16 at 100.00 | Aa2 | | 1,212,095 | |
| | 4,130 | | Total Idaho | | | | 4,451,765 | |
Nuveen Investments 65
| | | Nuveen Insured Dividend Advantage Municipal Fund (continued) |
| NVG | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Illinois – 10.8% (7.2% of Total Investments) | | | | | |
| $ | 10,000 | | Bolingbrook, Illinois, General Obligation Bonds, Series 2002A, 5.375%, 1/01/38 (Pre-refunded 1/01/12) – FGIC Insured | 1/12 at 100.00 | Aa3 (4) | $ | 10,587,900 | |
| | 1,305 | | Chicago, Illinois, General Obligation Bonds, Series 2001A, 5.500%, 1/01/38 – NPFG Insured | 1/11 at 101.00 | AA– | | 1,325,397 | |
| | | | Chicago, Illinois, General Obligation Bonds, Series 2001A: | | | | | |
| | 50 | | 5.500%, 1/01/38 (Pre-refunded 1/01/11) – NPFG Insured | 1/11 at 101.00 | AA– (4) | | 50,951 | |
| | 1,645 | | 5.500%, 1/01/38 (Pre-refunded 1/01/11) – NPFG Insured | 1/11 at 101.00 | AA– (4) | | 1,676,288 | |
| | | | Chicago, Illinois, Second Lien Passenger Facility Charge Revenue Bonds, O’Hare International Airport, Series 2001C: | | | | | |
| | 4,250 | | 5.500%, 1/01/16 – AMBAC Insured (Alternative Minimum Tax) | 1/11 at 101.00 | A2 | | 4,321,400 | |
| | 4,485 | | 5.500%, 1/01/17 – AMBAC Insured (Alternative Minimum Tax) | 1/11 at 101.00 | A2 | | 4,558,330 | |
| | 4,730 | | 5.500%, 1/01/18 – AMBAC Insured (Alternative Minimum Tax) | 1/11 at 101.00 | A2 | | 4,807,336 | |
| | 2,930 | | 5.500%, 1/01/19 – AMBAC Insured (Alternative Minimum Tax) | 1/11 at 101.00 | A2 | | 2,977,906 | |
| | 3,600 | | Chicago, Illinois, Third Lien General Airport Revenue Bonds, O’Hare International Airport, Series 2005A, 5.250%, 1/01/24 – NPFG Insured | 1/16 at 100.00 | A1 | | 3,806,460 | |
| | 3,000 | | Chicago, Illinois, Third Lien General Airport Revenue Refunding Bonds, O’Hare International Airport, Series 2002A, 5.750%, 1/01/17 – NPFG Insured (Alternative Minimum Tax) | 1/12 at 100.00 | A1 | | 3,107,400 | |
| | 4,000 | | Cicero, Cook County, Illinois, General Obligation Corporate Purpose Bonds, Series 2002, 5.000%, 12/01/21 – NPFG Insured | 12/12 at 101.00 | A | | 4,097,360 | |
| | 480 | | DuPage County Community School District 200, Wheaton, Illinois, General Obligation Bonds, Series 2003C, 5.250%, 10/01/22 – AGM Insured | 10/13 at 100.00 | Aa2 | | 526,282 | |
| | | | DuPage County Community School District 200, Wheaton, Illinois, General Obligation Bonds, Series 2003C: | | | | | |
| | 770 | | 5.250%, 10/01/22 (Pre-refunded 10/01/13) – AGM Insured | 10/13 at 100.00 | Aa2 (4) | | 870,085 | |
| | 250 | | 5.250%, 10/01/22 (Pre-refunded 10/01/13) – AGM Insured | 10/13 at 100.00 | Aa2 (4) | | 282,495 | |
| | 3,500 | | Illinois Municipal Electric Agency, Power Supply System Revenue Bonds, Series 2007A, 5.000%, 2/01/35 – FGIC Insured | 2/17 at 100.00 | A+ | | 3,584,665 | |
| | 17,465 | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Capital Appreciation Refunding Series 2010B-1, 0.000%, 6/15/45 | No Opt. Call | AAA | | 2,122,521 | |
| | 62,460 | | Total Illinois | | | | 48,702,776 | |
| | | | Indiana – 15.4% (10.4% of Total Investments) | | | | | |
| | 3,380 | | Evansville, Indiana, Sewerage Works Revenue Refunding Bonds, Series 2003A, 5.000%, 7/01/20 – AMBAC Insured | 7/13 at 100.00 | A1 | | 3,615,113 | |
| | | | Indiana Bond Bank, Special Program Bonds, Hendricks County Redevelopment District, Series 2002D: | | | | | |
| | 5,075 | | 5.250%, 4/01/26 (Pre-refunded 4/01/12) – AMBAC Insured | 4/12 at 100.00 | AA (4) | | 5,427,104 | |
| | 7,000 | | 5.250%, 4/01/30 (Pre-refunded 4/01/12) – AMBAC Insured | 4/12 at 100.00 | AA (4) | | 7,485,660 | |
| | 10,000 | | Indiana Health Facility Financing Authority, Hospital Revenue Bonds, Marion General Hospital, Series 2002, 5.250%, 7/01/32 – AMBAC Insured | 7/12 at 100.00 | A+ | | 10,043,700 | |
| | 3,200 | | Indiana Municipal Power Agency, Power Supply Revenue Bonds, Series 2007A, 5.000%, 1/01/42 – NPFG Insured | 1/17 at 100.00 | A+ | | 3,266,176 | |
| | 5,000 | | Indianapolis Local Public Improvement Bond Bank, Indiana, Waterworks Project Series 2009A, 5.500%, 1/01/38 – AGC Insured | 1/19 at 100.00 | AA+ | | 5,501,650 | |
| | 25,000 | | Indianapolis Local Public Improvement Bond Bank, Indiana, Waterworks Project, Series 2002A, 5.250%, 7/01/33 (Pre-refunded 7/01/12) – NPFG Insured | 7/12 at 100.00 | AAA | | 27,007,750 | |
| | 6,960 | | Valparaiso Middle School Building Corporation, Indiana, First Mortgage Refunding Bonds, Series 2002, 5.000%, 7/15/24 – NPFG Insured | 1/13 at 100.00 | AA+ | | 7,415,323 | |
| | 65,615 | | Total Indiana | | | | 69,762,476 | |
| | | | Kansas – 0.8% (0.5% of Total Investments) | | | | | |
| | 3,500 | | Kansas Development Finance Authority, Revenue Bonds, Sisters of Charity of Leavenworth Health Services Corporation, Series 2010A, 5.000%, 1/01/40 | No Opt. Call | AA | | 3,608,885 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Kentucky – 0.6% (0.4% of Total Investments) | | | | | |
| $ | 2,415 | | Kentucky State Property and Buildings Commission, Revenue Bonds, Project 93, Refunding Series 2009, 5.250%, 2/01/20 – AGC Insured | 2/19 at 100.00 | AA+ | $ | 2,826,564 | |
| | | | Louisiana – 3.0% (2.0% of Total Investments) | | | | | |
| | 1,325 | | Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge General Hospital, Series 2004, 5.250%, 7/01/24 – NPFG Insured | 7/14 at 100.00 | A | | 1,369,984 | |
| | | | Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006A: | | | | | |
| | 770 | | 4.750%, 5/01/39 – AGM Insured (UB) | 5/16 at 100.00 | AA+ | | 784,746 | |
| | 8,270 | | 4.500%, 5/01/41 – FGIC Insured (UB) | 5/16 at 100.00 | Aa1 | | 8,275,955 | |
| | 3 | | Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006, Residuals 600-5, 16.301%, 5/01/34 – FGIC Insured (IF) | 5/16 at 100.00 | Aa1 | | 3,343 | |
| | 3,085 | | New Orleans, Louisiana, General Obligation Refunding Bonds, Series 2002, 5.125%, 9/01/21 – NPFG Insured | 9/12 at 100.00 | A | | 3,150,433 | |
| | 13,453 | | Total Louisiana | | | | 13,584,461 | |
| | | | Massachusetts – 0.9% (0.6% of Total Investments) | | | | | |
| | 1,000 | | Massachusetts Department of Transportation, Metropolitan Highway System Revenue Bonds, Commonwealth Contract Assistance Secured, Refunding Series 2010B, 5.000%, 1/01/35 | 1/20 at 100.00 | AA | | 1,068,570 | |
| | 2,775 | | Massachusetts Water Resources Authority, General Revenue Bonds, Series 2007A, 4.500%, 8/01/46 – AGM Insured (UB) | 2/17 at 100.00 | AA+ | | 2,791,814 | |
| | 3,775 | | Total Massachusetts | | | | 3,860,384 | |
| | | | Michigan – 0.3% (0.2% of Total Investments) | | | | | |
| | 1,500 | | Michigan State Hospital Finance Authority, Revenue Bonds, Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31 (UB) | 12/16 at 100.00 | AA | | 1,546,755 | |
| | | | Minnesota – 0.5% (0.3% of Total Investments) | | | | | |
| | 1,970 | | Northern Municipal Power Agency, Minnesota, Electric System Revenue Bonds, Refunding Series 2009A, 5.000%, 1/01/15 – AGC Insured | No Opt. Call | AA+ | | 2,238,393 | |
| | | | Missouri – 0.4% (0.3% of Total Investments) | | | | | |
| | 1,600 | | St. Louis County Pattonville School District R3, Missouri, General Obligation Bonds, Series 2004, 5.250%, 3/01/19 – AGM Insured | 3/14 at 100.00 | AA+ | | 1,792,544 | |
| | | | Nebraska – 2.0% (1.3% of Total Investments) | | | | | |
| | 6,360 | | Lincoln, Nebraska, Electric System Revenue Bonds, Series 2005, 5.000%, 9/01/32 | 9/15 at 100.00 | AA | | 6,684,106 | |
| | | | Municipal Energy Agency of Nebraska, Power Supply System Revenue Bonds, Series 2003A: | | | | | |
| | 1,000 | | 5.250%, 4/01/20 – AGM Insured | 4/13 at 100.00 | AA+ | | 1,085,370 | |
| | 1,000 | | 5.250%, 4/01/21 – AGM Insured | 4/13 at 100.00 | AA+ | | 1,077,200 | |
| | 8,360 | | Total Nebraska | | | | 8,846,676 | |
| | | | Nevada – 1.5% (1.0% of Total Investments) | | | | | |
| | 6,600 | | Clark County, Nevada, Passenger Facility Charge Revenue Bonds, Las Vegas-McCarran International Airport, Series 2010A, 5.250%, 7/01/39 – AGM Insured | 1/20 at 100.00 | AA+ | | 6,852,582 | |
| | | | New Jersey – 0.9% (0.6% of Total Investments) | | | | | |
| | 2,150 | | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Refunding Series 2006A, 5.250%, 12/15/20 | No Opt. Call | AA– | | 2,481,122 | |
| | 1,200 | | New Jersey Turnpike Authority, Revenue Bonds, Refunding Series 2005D-1, 5.250%, 1/01/26 – AGM Insured | No Opt. Call | AA+ | | 1,419,024 | |
| | 3,350 | | Total New Jersey | | | | 3,900,146 | |
| | | | New York – 6.0% (4.0% of Total Investments) | | | | | |
| | 1,120 | | Dormitory Authority of the State of New York, FHA-Insured Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/23 – FGIC Insured | 2/15 at 100.00 | A | | 1,171,251 | |
| | 3,660 | | Dormitory Authority of the State of New York, Revenue Bonds, Mental Health Services Facilities Improvements, Series 2005B, 5.000%, 2/15/23 – AMBAC Insured | 2/15 at 100.00 | AA– | | 3,890,470 | |
Nuveen Investments 67
| | | Nuveen Insured Dividend Advantage Municipal Fund (continued) |
| NVG | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | New York (continued) | | | | | |
| | | | Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, Tender Option Bond Trust 3518: | | | | | |
| $ | 2,000 | | 13.061%, 2/15/33 (IF) | 2/19 at 100.00 | AAA | $ | 2,373,920 | |
| | 1,335 | | 13.049%, 2/15/33 (IF) | 2/19 at 100.00 | AAA | | 1,584,592 | |
| | 3,130 | | Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series 2006A, 4.500%, 2/15/47 – NPFG Insured | 2/17 at 100.00 | A | | 3,004,988 | |
| | 2,400 | | Long Island Power Authority, New York, Electric System Revenue Bonds, Series 2006F, 4.250%, 5/01/33 – NPFG Insured | 11/16 at 100.00 | A | | 2,394,480 | |
| | 480 | | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2005B, 5.000%, 11/15/30 – AMBAC Insured | 11/15 at 100.00 | A | | 497,947 | |
| | 10,265 | | Metropolitan Transportation Authority, New York, Transportation Revenue Refunding Bonds, Series 2002A, 5.000%, 11/15/30 – AGM Insured | 11/12 at 100.00 | AA+ | | 10,533,224 | |
| | 1,435 | | New York City Industrial Development Agency, New York, Revenue Bonds, Yankee Stadium Project PILOT, Series 2009A, 7.000%, 3/01/49 – AGC Insured | 3/19 at 100.00 | AA+ | | 1,680,514 | |
| | 25,825 | | Total New York | | | | 27,131,386 | |
| | | | North Carolina – 0.6% (0.4% of Total Investments) | | | | | |
| | 2,080 | | North Carolina Medical Care Commission, FHA-Insured Mortgage Revenue Bonds, Betsy Johnson Regional Hospital Project, Series 2003, 5.375%, 10/01/24 – AGM Insured | 10/13 at 100.00 | AA+ | | 2,152,842 | |
| | 540 | | Oak Island, North Carolina, Enterprise System Revenue Bonds, Series 2009A, 6.000%, 6/01/34 – AGC Insured | 6/19 at 100.00 | AA+ | | 597,154 | |
| | 2,620 | | Total North Carolina | | | | 2,749,996 | |
| | | | Ohio – 0.5% (0.4% of Total Investments) | | | | | |
| | | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: | | | | | |
| | 65 | | 5.125%, 6/01/24 | 6/17 at 100.00 | BBB | | 56,798 | |
| | 710 | | 5.875%, 6/01/30 | 6/17 at 100.00 | BBB | | 598,232 | |
| | 685 | | 5.750%, 6/01/34 | 6/17 at 100.00 | BBB | | 546,274 | |
| | 1,570 | | 5.875%, 6/01/47 | 6/17 at 100.00 | BBB | | 1,201,458 | |
| | 3,030 | | Total Ohio | | | | 2,402,762 | |
| | | | Oklahoma – 0.4% (0.3% of Total Investments) | | | | | |
| | 2,000 | | Oklahoma Development Finance Authority, Revenue Bonds, Saint John Health System, Series 2007, 5.000%, 2/15/37 | 2/17 at 100.00 | A | | 2,004,140 | |
| | | | Oregon – 1.9% (1.3% of Total Investments) | | | | | |
| | 3,000 | | Oregon State Department of Transportation, Highway User Tax Revenue Bonds, Series 2009A, 5.000%, 11/15/33 | 5/19 at 100.00 | AAA | | 3,238,920 | |
| | | | Oregon, General Obligation Veterans Welfare Bonds, Series 82: | | | | | |
| | 3,580 | | 5.375%, 12/01/31 | 12/11 at 100.00 | Aa1 | | 3,630,084 | |
| | 1,680 | | 5.500%, 12/01/42 | 12/11 at 100.00 | Aa1 | | 1,701,235 | |
| | 8,260 | | Total Oregon | | | | 8,570,239 | |
| | | | Pennsylvania – 4.7% (3.2% of Total Investments) | | | | | |
| | 4,500 | | Allegheny County, Pennsylvania, Airport Revenue Refunding Bonds, Pittsburgh International Airport, Series 1997A, 5.750%, 1/01/13 – NPFG Insured (Alternative Minimum Tax) | No Opt. Call | A | | 4,739,220 | |
| | 1,050 | | Delaware River Port Authority, New Jersey and Pennsylvania, Revenue Bonds, Series 2010E, 5.000%, 1/01/40 – AGM Insured | 1/20 at 100.00 | AA+ | | 1,099,487 | |
| | 4,130 | | Pennsylvania Public School Building Authority, Lease Revenue Bonds, School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 – AGM Insured (UB) | 12/16 at 100.00 | AA+ | | 4,107,285 | |
| | 1,050 | | Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 2006A, 5.000%, 12/01/26 – AMBAC Insured | 6/16 at 100.00 | Aa3 | | 1,118,859 | |
| | 6,000 | | Pennsylvania Turnpike Commission, Turnpike Subordinate Revenue Bonds, Series 2009C, 0.000%, 6/01/33 – AGM Insured | 6/26 at 100.00 | AA+ | | 4,912,560 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Pennsylvania (continued) | | | | | |
| $ | 2,000 | | Philadelphia Municipal Authority, Pennsylvania, Lease Revenue Bonds, Series 2003B, 5.250%, 11/15/18 – AGM Insured | 11/13 at 100.00 | AA+ | $ | 2,172,200 | |
| | 2,000 | | Reading School District, Berks County, Pennsylvania, General Obligation Bonds, Series 2005, 5.000%, 1/15/19 – AGM Insured (UB) | 1/16 at 100.00 | AA+ | | 2,233,480 | |
| | 1,000 | | State Public School Building Authority, Pennsylvania, Lease Revenue Bonds, Philadelphia School District, Series 2003, 5.000%, 6/01/23 (Pre-refunded 6/01/13) – AGM Insured | 6/13 at 100.00 | AAA | | 1,109,600 | |
| | 21,730 | | Total Pennsylvania | | | | 21,492,691 | |
| | | | Puerto Rico – 0.5% (0.3% of Total Investments) | | | | | |
| | 1,225 | | Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, 8/01/21 – CIFG Insured | No Opt. Call | A3 | | 1,307,418 | |
| | 5,000 | | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A, 0.000%, 8/01/42 – FGIC Insured | No Opt. Call | Aa2 | | 755,150 | |
| | 6,225 | | Total Puerto Rico | | | | 2,062,568 | |
| | | | South Carolina – 1.5% (1.0% of Total Investments) | | | | | |
| | 1,950 | | Greenville County School District, South Carolina, Installment Purchase Revenue Bonds, Series 2006, 5.000%, 12/01/28 – AGM Insured | 12/16 at 100.00 | AA+ | | 2,067,917 | |
| | | | Greenville, South Carolina, Tax Increment Revenue Improvement Bonds, Series 2003: | | | | | |
| | 1,000 | | 5.500%, 4/01/17 – NPFG Insured | 4/13 at 100.00 | A | | 1,098,260 | |
| | 2,300 | | 5.000%, 4/01/21 – NPFG Insured | 4/13 at 100.00 | A | | 2,467,969 | |
| | 1,000 | | Scago Educational Facilities Corporation, South Carolina, Installment Purchase Revenue Bonds, Spartanburg County School District 5, Series 2005, 5.000%, 4/01/21 – AGM Insured | 10/15 at 100.00 | AA+ | | 1,076,630 | |
| | 6,250 | | Total South Carolina | | | | 6,710,776 | |
| | | | Tennessee – 9.6% (6.5% of Total Investments) | | | | | |
| | | | Memphis, Tennessee, Sanitary Sewerage System Revenue Bonds, Series 2004: | | | | | |
| | 1,495 | | 5.000%, 10/01/19 – AGM Insured | 10/14 at 100.00 | AA+ | | 1,670,543 | |
| | 1,455 | | 5.000%, 10/01/20 – AGM Insured | 10/14 at 100.00 | AA+ | | 1,625,846 | |
| | 1,955 | | 5.000%, 10/01/21 – AGM Insured | 10/14 at 100.00 | AA+ | | 2,176,482 | |
| | 10,000 | | Memphis-Shelby County Sports Authority, Tennessee, Revenue Bonds, Memphis Arena, Series 2002A, 5.125%, 11/01/28 (Pre-refunded 11/01/12) – AMBAC Insured | 11/12 at 100.00 | Aa2 (4) | | 10,915,000 | |
| | 10,000 | | Memphis-Shelby County Sports Authority, Tennessee, Revenue Bonds, Memphis Arena, Series 2002B, 5.125%, 11/01/29 (Pre-refunded 11/01/12) – AMBAC Insured | 11/12 at 100.00 | Aa2 (4) | | 10,915,000 | |
| | 15,195 | | Tennessee State School Bond Authority, Higher Educational Facilities Second Program Bonds, Series 2002A, 5.250%, 5/01/32 (Pre-refunded 5/01/12) – AGM Insured | 5/12 at 100.00 | AA+ (4) | | 16,294,814 | |
| | 40,100 | | Total Tennessee | | | | 43,597,685 | |
| | | | Texas – 22.5% (15.1% of Total Investments) | | | | | |
| | 3,500 | | Dallas-Ft. Worth International Airport, Texas, Joint Revenue Refunding and Improvement Bonds, Series 2001A, 5.750%, 11/01/13 – NPFG Insured (Alternative Minimum Tax) | 11/11 at 100.00 | A+ | | 3,665,305 | |
| | 10,000 | | Gainesville Hospital District, Texas, Limited Tax General Obligation Bonds, Series 2002, 5.375%, 8/15/32 (Pre-refunded 8/15/11) – NPFG Insured | 8/11 at 100.00 | A3 (4) | | 10,393,300 | |
| | 1,210 | | Galveston, Texas, General Obligation Bonds, Series 2001, 5.250%, 5/01/21 – AMBAC Insured | 5/11 at 100.00 | Aa3 | | 1,232,663 | |
| | | | Harris County Health Facilities Development Corporation, Texas, Thermal Utility Revenue Bonds, TECO Project, Series 2003: | | | | | |
| | 2,240 | | 5.000%, 11/15/16 – NPFG Insured | 11/13 at 100.00 | AA | | 2,405,402 | |
| | 2,355 | | 5.000%, 11/15/17 – NPFG Insured | 11/13 at 100.00 | AA | | 2,503,954 | |
| | 4,080 | | Harris County, Texas, General Obligation Toll Road Revenue Bonds, Series 2009, Trust 3418, 13.596%, 8/15/27 – AGM Insured (IF) | No Opt. Call | AAA | | 6,340,361 | |
| | 13,000 | | Houston Area Water Corporation, Texas, Contract Revenue Bonds, Northeast Water Purification Plant, Series 2002, 5.125%, 3/01/32 (Pre-refunded 3/01/12) – FGIC Insured | 3/12 at 100.00 | N/R (4) | | 13,827,970 | |
| | 1,000 | | Houston, Texas, First Lien Combined Utility System Revenue Bonds, Series 2004A, 5.250%, 5/15/24 – FGIC Insured | 5/14 at 100.00 | AA | | 1,080,700 | |
| | 4,345 | | San Antonio, Texas, Water System Senior Lien Revenue Refunding Bonds, Series 2002, 5.500%, 5/15/17 – AGM Insured | 5/12 at 100.00 | AA+ | | 4,626,339 | |
Nuveen Investments 69
| | | Nuveen Insured Dividend Advantage Municipal Fund (continued) |
| NVG | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Texas (continued) | | | | | |
| $ | 5,055 | | Texas Department of Housing and Community Affairs, Residential Mortgage Revenue Bonds, Series 2001A, 5.350%, 7/01/33 (Alternative Minimum Tax) | 7/11 at 100.00 | AAA | $ | 5,135,071 | |
| | 7,090 | | Texas Department of Housing and Community Affairs, Single Family Mortgage Bonds, Series 2002B, 5.550%, 9/01/33 – NPFG Insured (Alternative Minimum Tax) | 3/12 at 100.00 | AAA | | 7,157,639 | |
| | | | Texas Public Finance Authority, Revenue Bonds, Texas Southern University Financing System, Series 2002: | | | | | |
| | 3,520 | | 5.125%, 11/01/20 – NPFG Insured | 5/12 at 100.00 | Baa1 | | 3,298,346 | |
| | 3,520 | | 5.125%, 11/01/21 – NPFG Insured | 5/12 at 100.00 | Baa1 | | 3,258,429 | |
| | | | Texas Student Housing Authority, Revenue Bonds, Austin Project, Senior Series 2001A: | | | | | |
| | 9,400 | | 5.375%, 1/01/23 – NPFG Insured | 1/12 at 102.00 | Baa1 | | 6,759,822 | |
| | 11,665 | | 5.500%, 1/01/33 – NPFG Insured | 1/12 at 102.00 | Baa1 | | 7,326,670 | |
| | 5,000 | | Texas Water Development Board, Senior Lien State Revolving Fund Revenue Bonds, Series 1999B, 5.250%, 7/15/17 | 1/11 at 100.00 | AAA | | 5,019,000 | |
| | 9,145 | | Texas, General Obligation Bonds, Veterans Housing Assistance Program Fund II, Series 2002A-1, 5.250%, 12/01/22 (Alternative Minimum Tax) (UB) | 6/12 at 100.00 | Aaa | | 9,265,074 | |
| | | | Williamson County, Texas, General Obligation Bonds, Series 2002: | | | | | |
| | 3,000 | | 5.250%, 2/15/22 (Pre-refunded 2/15/12) – AGM Insured | 2/12 at 100.00 | AAA | | 3,184,830 | |
| | 5,000 | | 5.250%, 2/15/25 (Pre-refunded 2/15/12) – AGM Insured | 2/12 at 100.00 | AAA | | 5,308,050 | |
| | 104,125 | | Total Texas | | | | 101,788,925 | |
| | | | Utah – 1.3% (0.9% of Total Investments) | | | | | |
| | 4,865 | | Utah Transit Authority, Sales Tax Revenue Bonds, Series 2008, Trust 1193, 13.210%, 12/15/15 – AGM Insured (IF) | No Opt. Call | AAA | | 5,860,233 | |
| | | | Washington – 15.5% (10.4% of Total Investments) | | | | | |
| | 5,265 | | Energy Northwest, Washington Public Power, Nine Canyon Wind Project Revenue Bonds, Series 2006A, 4.500%, 7/01/30 – AMBAC Insured | 7/16 at 100.00 | A– | | 5,357,032 | |
| | 6,600 | | Energy Northwest, Washington, Electric Revenue Refunding Bonds, Columbia Generating Station – Nuclear Project 2, Series 2002B, 5.350%, 7/01/18 – AGM Insured | 7/12 at 100.00 | Aaa | | 7,098,300 | |
| | 7,675 | | Energy Northwest, Washington, Electric Revenue Refunding Bonds, Nuclear Project 1, Series 2002A, 5.500%, 7/01/15 – NPFG Insured | 7/12 at 100.00 | Aaa | | 8,238,882 | |
| | 2,500 | | Port of Seattle, Washington, Revenue Refunding Bonds, Series 2002D, 5.750%, 11/01/15 – FGIC Insured (Alternative Minimum Tax) | 11/12 at 100.00 | Aa2 | | 2,679,875 | |
| | 2,200 | | Snohomish County School District 2, Everett, Washington, General Obligation Bonds, Series 2003B, 5.000%, 6/01/17 – AGM Insured | 12/13 at 100.00 | AA+ | | 2,445,652 | |
| | 3,255 | | Thurston and Pierce Counties School District, Washington, General Obligation Bonds, Yelm Community Schools, Series 2003, 5.250%, 12/01/16 – AGM Insured | 6/13 at 100.00 | Aa1 | | 3,638,048 | |
| | 10,000 | | University of Washington, General Revenue Bonds, Refunding Series 2007, 5.000%, 6/01/37 – AMBAC Insured (UB) | 6/17 at 100.00 | Aaa | | 10,458,900 | |
| | | | Washington State Economic Development Finance Authority, Wastewater Revenue Bonds, LOTT Project, Series 2002: | | | | | |
| | 2,000 | | 5.500%, 6/01/17 – AMBAC Insured | 6/12 at 100.00 | Aa3 | | 2,133,060 | |
| | 4,325 | | 5.125%, 6/01/22 – AMBAC Insured | 6/12 at 100.00 | Aa3 | | 4,524,858 | |
| | 15,000 | | Washington State Health Care Facilities Authority, Revenue Bonds, Harrison Memorial Hospital, Series 1998, 5.000%, 8/15/28 – AMBAC Insured | 8/13 at 102.00 | N/R | | 13,977,150 | |
| | 3,335 | | Washington State, General Obligation Bonds, Series 2009, Trust 1212, 13.126%, 7/01/14 – AGM Insured (IF) | No Opt. Call | AA+ | | 3,991,828 | |
| | 5,170 | | Whitman County School District 267, Pullman, Washington, General Obligation Bonds, Series 2002, 5.000%, 12/01/20 – AGM Insured | 6/12 at 100.00 | Aa1 | | 5,541,824 | |
| | 67,325 | | Total Washington | | | | 70,085,409 | |
| | | | Wisconsin – 2.8% (1.9% of Total Investments) | | | | | |
| | 11,950 | | Wisconsin, Transportation Revenue Refunding Bonds, Series 2002-1, 5.125%, 7/01/18 (Pre-refunded 7/01/12) – AMBAC Insured | 7/12 at 100.00 | AA+ (4) | | 12,884,849 | |
| $ | 695,823 | | Total Municipal Bonds (cost $640,911,127) | | | | 670,969,620 | |
| | Shares | | Description (1) | | Value | |
| | | | Investment Companies – 0.3% (0.2% of Total Investments) | | | |
| | 8,134 | | BlackRock MuniHoldings Fund Inc. | $ | 135,675 | |
| | 13,600 | | BlackRock MuniEnhanced Fund Inc. | | 153,136 | |
| | 7,920 | | Dreyfus Strategic Municipal Fund | | 70,963 | |
| | 3,500 | | DWS Municipal Income Trust | | 44,450 | |
| | 9,668 | | Morgan Stanley Quality Municipal Income Trust | | 129,164 | |
| | 26,280 | | PIMCO Municipal Income Fund II | | 305,899 | |
| | 9,500 | | Van Kampen Advantage Municipal Income Fund II | | 120,175 | |
| | 28,980 | | Van Kampen Investment Grade Municipal Trust | | 434,700 | |
| | | | Total Investment Companies (cost $1,353,712) | | 1,394,162 | |
| | | | Total Investments (cost $642,264,839) – 148.5% | | 672,363,782 | |
| | | | Floating Rate Obligations – (6.3)% | | (28,413,334 | ) |
| | | | MuniFund Term Preferred Shares, at Liquidation Value – (23.8)% (5) | | (108,000,000 | ) |
| | | | Other Assets Less Liabilities – 1.9% | | 8,907,233 | |
| | | | Auction Rate Preferred Shares, at Liquidation Value – (20.3)% (5) | | (91,950,000 | ) |
| | | | Net Assets Applicable to Common Shares – 100% | $ | 452,907,681 | |
| | | The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. |
| (1) | | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. |
| (2) | | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| (4) | | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. |
| (5) | | MuniFund Term Preferred Shares and Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments are 16.1% and 13.7%, respectively. |
| N/R | | Not rated. |
| (IF) | | Inverse floating rate investment. |
| (UB) | | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information. |
See accompanying notes to financial statements.
Nuveen Investments 71
| | | Nuveen Insured Tax-Free Advantage Municipal Fund |
| NEA | | Portfolio of Investments October 31, 2010 |
| | | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Alabama – 7.0% (4.8% of Total Investments) | | | | | |
| $ | 1,000 | | Alabama Special Care Facilities Financing Authority, Revenue Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/36 (UB) | 11/16 at 100.00 | Aa1 | $ | 1,030,720 | |
| | 5,655 | | Colbert County-Northwest Health Care Authority, Alabama, Revenue Bonds, Helen Keller Hospital, Series 2003, 5.750%, 6/01/27 | 6/13 at 101.00 | Ba1 | | 5,524,765 | |
| | 3,100 | | Huntsville Healthcare Authority, Alabama, Revenue Bonds, Series 1998A, 5.400%, 6/01/22 (Pre-refunded 5/14/12) – NPFG Insured | 5/12 at 102.00 | A (4) | | 3,382,131 | |
| | 6,280 | | Jefferson County, Alabama, Sewer Revenue Capital Improvement Warrants, Series 2002D, 5.000%, 2/01/32 (Pre-refunded 8/01/12) – FGIC Insured | 8/12 at 100.00 | AAA | | 6,763,811 | |
| | 1,750 | | Montgomery, Alabama, General Obligation Warrants, Series 2003, 5.000%, 5/01/21 – AMBAC Insured | 5/12 at 101.00 | AA+ | | 1,856,138 | |
| | 4,500 | | Sheffield, Alabama, Electric Revenue Bonds, Series 2003, 5.500%, 7/01/29 – AMBAC Insured | 7/13 at 100.00 | Aa3 | | 4,781,565 | |
| | 22,285 | | Total Alabama | | | | 23,339,130 | |
| | | | Arizona – 5.1% (3.5% of Total Investments) | | | | | |
| | 10,000 | | Maricopa County Pollution Control Corporation, Arizona, Revenue Bonds, Arizona Public Service Company – Palo Verde Project, Series 2002A, 5.050%, 5/01/29 – AMBAC Insured | 11/12 at 100.00 | Baa2 | | 9,782,400 | |
| | 6,545 | | Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic Plaza, Series 2005B, 0.000%, 7/01/37 – FGIC Insured | No Opt. Call | AA | | 6,071,469 | |
| | 1,250 | | Scottsdale Industrial Development Authority, Arizona, Hospital Revenue Bonds, Scottsdale Healthcare, Series 2006C. Re-offering, 5.000%, 9/01/35 – AGC Insured | 9/20 at 100.00 | AA+ | | 1,272,775 | |
| | 17,795 | | Total Arizona | | | | 17,126,644 | |
| | | | California – 20.8% (14.3% of Total Investments) | | | | | |
| | 26,300 | | California State Public Works Board, Lease Revenue Bonds, Department of General Services, Capital East End Project, Series 2002A, 5.000%, 12/01/27 – AMBAC Insured | 12/12 at 100.00 | A2 | | 26,404,937 | |
| | 250 | | California State, General Obligation Bonds, Series 2002, 5.250%, 4/01/30 – SYNCORA GTY Insured | 4/12 at 100.00 | A1 | | 252,598 | |
| | 5 | | California, General Obligation Bonds, Series 2004, 5.000%, 4/01/31 – AMBAC
Insured | 4/14 at 100.00 | A1 | | 5,048 | |
| | 7,495 | | California, General Obligation Bonds, Series 2004, 5.000%, 4/01/31 (Pre-refunded 4/01/14) – AMBAC Insured | 4/14 at 100.00 | AAA | | 8,558,241 | |
| | 2,910 | | Cathedral City Public Financing Authority, California, Tax Allocation Bonds, Housing Set-Aside, Series 2002D, 5.000%, 8/01/26 – NPFG Insured | 8/12 at 102.00 | A | | 2,923,124 | |
| | 8,000 | | Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/35 – FGIC Insured | 6/15 at 100.00 | A2 | | 7,703,840 | |
| | 250 | | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.125%, 6/01/47 | 6/17 at 100.00 | BBB | | 180,178 | |
| | 2,500 | | Irvine Public Facilities and Infrastructure Authority, California, Assessment Revenue Bonds, Series 2003C, 5.000%, 9/02/23 – AMBAC Insured | 9/13 at 100.00 | N/R | | 2,483,700 | |
| | 4,000 | | Montara Sanitation District, California, General Obligation Bonds, Series 2003, 5.000%, 8/01/28 – FGIC Insured | 8/11 at 101.00 | AA– | | 4,124,520 | |
| | | | Plumas County, California, Certificates of Participation, Capital Improvement Program, Series 2003A: | | | | | |
| | 1,130 | | 5.250%, 6/01/19 – AMBAC Insured | 6/13 at 101.00 | A– | | 1,177,889 | |
| | 1,255 | | 5.250%, 6/01/21 – AMBAC Insured | 6/13 at 101.00 | A– | | 1,293,290 | |
| | 1,210 | | Redding Joint Powers Financing Authority, California, Lease Revenue Bonds, Capital Improvement Projects, Series 2003A, 5.000%, 3/01/23 – AMBAC Insured | 3/13 at 100.00 | A | | 1,258,182 | |
| | 3,750 | | Sacramento Municipal Utility District, California, Electric Revenue Bonds, Series 2003R, 5.000%, 8/15/28 – NPFG Insured | 8/13 at 100.00 | A+ | | 3,865,013 | |
| | 1,500 | | San Diego Community College District, California, General Obligation Bonds, Series 2003A, 5.000%, 5/01/28 – AGM Insured | 5/13 at 100.00 | AA+ | | 1,593,540 | |
| | 1,055 | | Turlock Irrigation District, California, Certificates of Participation, Series 2003A, 5.000%, 1/01/28 – NPFG Insured | 1/13 at 100.00 | A | | 1,076,575 | |
| | 6,300 | | University of California, General Revenue Bonds, Multi-Purpose Projects, Series 2003A, 5.000%, 5/15/33 – AMBAC Insured (UB) | 5/13 at 100.00 | AA | | 6,411,951 | |
| | 67,910 | | Total California | | | | 69,312,626 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Colorado – 4.9% (3.4% of Total Investments) | | | | | |
| | | | Bowles Metropolitan District, Colorado, General Obligation Bonds, Series 2003: | | | | | |
| $ | 4,300 | | 5.500%, 12/01/23 – AGM Insured | 12/13 at 100.00 | AA+ | $ | 4,532,544 | |
| | 3,750 | | 5.500%, 12/01/28 – AGM Insured | 12/13 at 100.00 | AA+ | | 3,900,150 | |
| | 1,450 | | Colorado Educational and Cultural Facilities Authority, Charter School Revenue Bonds, Peak-to-Peak Charter School, Series 2004, 5.250%, 8/15/24 – SYNCORA GTY Insured | 8/14 at 100.00 | A | | 1,484,148 | |
| | 4,500 | | Colorado Health Facilities Authority, Colorado, Revenue Bonds, Catholic Health Initiatives, Series 2006C-1, Trust 1090, 14.988%, 10/01/41 – AGM Insured (IF) | 4/18 at 100.00 | AA+ | | 4,946,850 | |
| | 3,000 | | E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B, 0.000%, 9/01/30 – NPFG Insured | No Opt. Call | A | | 827,280 | |
| | 2,900 | | E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004A, 0.000%, 9/01/34 – NPFG Insured | No Opt. Call | A | | 587,192 | |
| | 19,900 | | Total Colorado | | | | 16,278,164 | |
| | | | District of Columbia – 0.7% (0.4% of Total Investments) | | | | | |
| | 7,000 | | Metropolitan Washington Airports Authority, Virginia, Dulles Toll Road Revenue Bonds, Capital Appreciation Series 2009B-2, 0.000%, 10/01/36 – AGC Insured | No Opt. Call | AA+ | | 1,474,480 | |
| | 665 | | Washington Convention Center Authority, District of Columbia, Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals 1606, 11.401%, 10/01/30 – AMBAC Insured (IF) | 10/16 at 100.00 | AA+ | | 693,429 | |
| | 7,665 | | Total District of Columbia | | | | 2,167,909 | |
| | | | Florida – 22.9% (15.7% of Total Investments) | | | | | |
| | 1,000 | | Bay County, Florida, Water System Revenue Bonds, Series 2005, 5.000%, 9/01/25 – AMBAC Insured | 9/15 at 100.00 | A1 | | 1,047,580 | |
| | | | Clay County, Florida, Utility System Revenue Bonds, Series 2007: | | | | | |
| | 1,500 | | 5.000%, 11/01/27 – SYNCORA GTY Insured (UB) | 11/17 at 100.00 | AAA | | 1,597,928 | |
| | 3,000 | | 5.000%, 11/01/32 – SYNCORA GTY Insured (UB) | 11/17 at 100.00 | AAA | | 3,136,380 | |
| | 400 | | Collier County, Florida, Capital Improvement Revenue Bonds, Series 2005, 5.000%, 10/01/23 – NPFG Insured | 10/14 at 100.00 | AA– | | 421,800 | |
| | 1,000 | | Escambia County, Florida, Sales Tax Revenue Refunding Bonds, Series 2002, 5.250%, 10/01/17 – AMBAC Insured | 10/12 at 101.00 | A+ | | 1,086,940 | |
| | 1,525 | | Fernandina Beach, Florida, Utility Acquisition and Improvement Revenue Bonds, Series 2003, 5.000%, 9/01/23 – FGIC Insured | 9/13 at 100.00 | A | | 1,541,699 | |
| | 500 | | Flagler County, Florida, Capital Improvement Revenue Bonds, Series 2005, 5.000%, 10/01/30 – NPFG Insured | 10/15 at 100.00 | A | | 513,240 | |
| | 160 | | Florida Housing Finance Agency, GNMA Collateralized Home Ownership Revenue Refunding Bonds, Series 1987G-1, 8.595%, 11/01/17 | No Opt. Call | AAA | | 173,709 | |
| | 2,500 | | Florida State Board of Education, Public Education Capital Outlay Bonds, Series 2008, Trust 2929, 16.750%, 12/01/16 – AGC Insured (IF) | No Opt. Call | AA+ | | 3,201,700 | |
| | 2,240 | | FSU Financial Assistance Inc., Florida, General Revenue Bonds, Educational and Athletic Facilities Improvements, Series 2004, 5.000%, 10/01/14 – AMBAC Insured | No Opt. Call | Aa3 | | 2,543,946 | |
| | 2,000 | | Greater Orlando Aviation Authority, Florida, Airport Facilities Revenue Bonds, Series 2002A, 5.125%, 10/01/32 – AGM Insured | 10/12 at 100.00 | AA+ | | 2,029,800 | |
| | 105 | | Greater Orlando Aviation Authority, Florida, Airport Facilities Revenue Refunding Bonds, Series 2003A, 5.000%, 10/01/17 – AGM Insured | 10/13 at 100.00 | AA+ | | 114,616 | |
| | 350 | | Halifax Hospital Medical Center, Florida, Revenue Bonds, Series 2006, 5.500%, 6/01/38 – AGM Insured | 6/18 at 100.00 | AA+ | | 362,152 | |
| | 1,300 | | Highlands County Health Facilities Authority, Florida, Hospital Revenue Bonds, Adventist Health System, Series 2005D, 5.000%, 11/15/35 – NPFG Insured | 11/15 at 100.00 | Aa3 | | 1,311,492 | |
| | 180 | | Highlands County Health Facilities Authority, Florida, Hospital Revenue Bonds, Adventist Health System, Series 2005D, 5.000%, 11/15/35 (Pre-refunded 11/15/15) – NPFG Insured | 11/15 at 100.00 | Aa3 (4) | | 211,770 | |
| | 3,500 | | Highlands County Health Facilities Authority, Florida, Hospital Revenue Bonds, Adventist Health System/Sunbelt Obligated Group, Series 2003D, 5.875%, 11/15/29 (Pre-refunded 11/15/13) | 11/13 at 100.00 | N/R (4) | | 3,988,950 | |
| | 1,500 | | Hillsborough County School Board, Florida, Certificates of Participation, Series 2003, 5.000%, 7/01/29 – NPFG Insured | 7/13 at 100.00 | Aa2 | | 1,528,800 | |
| | 2,270 | | Jacksonville, Florida, Local Government Sales Tax Revenue Refunding and Improvement Bonds, Series 2002, 5.375%, 10/01/18 – FGIC Insured | 10/12 at 100.00 | AA+ | | 2,425,745 | |
Nuveen Investments 73
| | | Nuveen Insured Tax-Free Advantage Municipal Fund (continued) |
| NEA | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Florida (continued) | | | | | |
| $ | 2,265 | | Lakeland, Florida, Utility Tax Revenue Bonds, Series 2003B, 5.000%, 10/01/20 – AMBAC Insured | 10/12 at 100.00 | N/R | $ | 2,303,505 | |
| | 1,730 | | Lee County, Florida, Transportation Facilities Revenue Bonds, Series 2004B, 5.000%, 10/01/22 – AMBAC Insured | 10/14 at 100.00 | A– | | 1,811,033 | |
| | 500 | | Lee Memorial Health System, Florida, Hospital Revenue Bonds, Series 2007A, 5.000%, 4/01/32 – NPFG Insured | 4/17 at 100.00 | A | | 494,795 | |
| | 3,000 | | Marco Island, Florida, Water Utility System Revenue Bonds, Series 2003, 5.000%, 10/01/27 – NPFG Insured | 10/13 at 100.00 | Aa3 | | 3,072,720 | |
| | 500 | | Miami-Dade County, Florida, Water and Sewer System Revenue Bonds, Refunding Series 2008B, 5.250%, 10/01/22 – AGM Insured | No Opt. Call | AA+ | | 589,225 | |
| | 2,000 | | Miami-Dade County, Florida, Water and Sewer System Revenue Bonds, Series 1999A, 5.000%, 10/01/29 – FGIC Insured | 4/11 at 100.50 | Aa2 | | 2,011,140 | |
| | 2,000 | | Orange County, Florida, Sales Tax Revenue Bonds, Series 2002A, 5.125%, 1/01/17 – FGIC Insured | 1/13 at 100.00 | AA | | 2,141,440 | |
| | 1,500 | | Orange County, Florida, Sales Tax Revenue Bonds, Series 2002B, 5.125%, 1/01/32 – FGIC Insured | 1/13 at 100.00 | AA | | 1,545,000 | |
| | 3,370 | | Osceola County School Board, Florida, Certificates of Participation, Series 2002A, 5.125%, 6/01/20 (Pre-refunded 6/01/12) – AMBAC Insured | 6/12 at 101.00 | Aa3 (4) | | 3,646,846 | |
| | 3,335 | | Palm Bay, Florida, Local Optional Gas Tax Revenue Bonds, Series 2004, 5.250%, 10/01/20 – NPFG Insured | 10/14 at 100.00 | AA– | | 3,723,161 | |
| | 1,095 | | Palm Bay, Florida, Utility System Revenue Bonds, Series 2004, 5.250%, 10/01/20 – NPFG Insured | 10/14 at 100.00 | Aa3 | | 1,222,447 | |
| | 2,670 | | Palm Beach County School Board, Florida, Certificates of Participation, Series 2002D, 5.000%, 8/01/28 – AGM Insured | 8/12 at 100.00 | AA+ | | 2,708,315 | |
| | 1,950 | | Palm Beach County School Board, Florida, Certificates of Participation, Series 2002D, 5.250%, 8/01/20 (Pre-refunded 8/01/12) – AGM Insured | 8/12 at 100.00 | AA+ (4) | | 2,113,761 | |
| | | | Pinellas County Health Facilities Authority, Florida, Revenue Bonds, Baycare Health System, Series 2003: | | | | | |
| | 2,800 | | 5.750%, 11/15/27 (Pre-refunded 5/15/13) | 5/13 at 100.00 | Aa3 (4) | | 3,159,380 | |
| | 3,000 | | 5.500%, 11/15/27 (Pre-refunded 5/15/13) | 5/13 at 100.00 | Aa3 (4) | | 3,366,150 | |
| | 1,000 | | Port Saint Lucie, Florida, Special Assessment Revenue Bonds, Southwest Annexation District 1B, Series 2007, 5.000%, 7/01/33 – NPFG Insured | 7/17 at 100.00 | A | | 987,240 | |
| | 2,115 | | Port St. Lucie, Florida, Sales Tax Revenue Bonds, Series 2003, 5.000%, 9/01/23 – NPFG Insured | 9/13 at 100.00 | A+ | | 2,233,757 | |
| | 1,500 | | Port St. Lucie, Florida, Stormwater Utility System Revenue Refunding Bonds, Series 2002, 5.000%, 5/01/23 – NPFG Insured | 5/12 at 100.00 | Aa3 | | 1,567,095 | |
| | 225 | | Port St. Lucie, Florida, Utility System Revenue Bonds, Refunding Series 2009, 5.250%, 9/01/35 – AGC Insured | 9/18 at 100.00 | AA+ | | 237,474 | |
| | 1,500 | | South Miami Health Facilities Authority, Florida, Hospital Revenue Bonds, Baptist Health Systems of South Florida, Series 2003, 5.200%, 11/15/28 (Pre-refunded 2/01/13) | 2/13 at 100.00 | Aaa | | 1,652,025 | |
| | 1,730 | | St. John’s County, Florida, Sales Tax Revenue Bonds, Series 2004A, 5.000%, 10/01/24 – AMBAC Insured | 10/14 at 100.00 | A+ | | 1,808,784 | |
| | 4,000 | | St. Lucie County School Board, Florida, Certificates of Participation, Master Lease Program, Series 2004A, 5.000%, 7/01/24 – AGM Insured | 7/14 at 100.00 | AA+ | | 4,140,680 | |
| | 1,200 | | Tamarac, Florida, Utility System Revenue Bonds, Series 2009, 5.000%, 10/01/39 – AGC Insured | 10/19 at 100.00 | AA+ | | 1,232,988 | |
| | 1,250 | | Volusia County Educational Facilities Authority, Florida, Revenue Refunding Bonds, Embry-Riddle Aeronautical University, Series 2003, 5.200%, 10/15/33 – RAAI Insured | 10/13 at 100.00 | Baa2 | | 1,255,063 | |
| | 71,265 | | Total Florida | | | | 76,262,271 | |
| | | | Georgia – 2.0% (1.4% of Total Investments) | | | | | |
| | 3,000 | | Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 2009B, 5.375%, 11/01/39 – AGM Insured | 11/19 at 100.00 | AA+ | | 3,177,120 | |
| | 1,410 | | DeKalb County, Georgia, Water and Sewer Revenue Bonds, Series 2006A, 5.000%, 10/01/35 – AGM Insured | 10/16 at 100.00 | AA+ | | 1,489,355 | |
| | 1,825 | | Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales Tax Revenue Bonds, Second Indenture Series 2002, 5.000%, 7/01/32 (Pre-refunded 1/01/13) – NPFG Insured | 1/13 at 100.00 | AA+ (4) | | 1,998,649 | |
| | 6,235 | | Total Georgia | | | | 6,665,124 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Illinois – 4.7% (3.2% of Total Investments) | | | | | |
| $ | 5,000 | | Chicago, Illinois, General Airport Revenue Bonds, O’Hare International Airport, Third Lien Refunding Series 2010C, 5.250%, 1/01/35 – AGC Insured | No Opt. Call | AA+ | $ | 5,259,750 | |
| | | | Cook County School District 145, Arbor Park, Illinois, General Obligation Bonds, Series 2004: | | | | | |
| | 1,635 | | 5.125%, 12/01/20 – AGM Insured | 12/14 at 100.00 | Aa3 | | 1,759,358 | |
| | 1,465 | | 5.125%, 12/01/23 – AGM Insured | 12/14 at 100.00 | Aa3 | | 1,553,779 | |
| | | | Cook County School District 145, Arbor Park, Illinois, General Obligation Bonds, Series 2004: | | | | | |
| | 1,650 | | 5.125%, 12/01/20 – AGM Insured (ETM) | 12/14 at 100.00 | Aa3 (4) | | 1,803,483 | |
| | 1,475 | | 5.125%, 12/01/23 – AGM Insured (ETM) | 12/14 at 100.00 | Aa3 (4) | | 1,589,844 | |
| | 2,500 | | Illinois Health Facilities Authority, Revenue Bonds, Lake Forest Hospital, Series 2003, 5.250%, 7/01/23 | 7/13 at 100.00 | AA+ | | 2,566,175 | |
| | 10,000 | | Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Capital Appreciation Refunding Series 2010B-1, 0.000%, 6/15/45 – AGM Insured | No Opt. Call | AAA | | 1,215,300 | |
| | 23,725 | | Total Illinois | | | | 15,747,689 | |
| | | | Indiana – 7.0% (4.8% of Total Investments) | | | | | |
| | 2,500 | | Evansville, Indiana, Sewerage Works Revenue Refunding Bonds, Series 2003A, 5.000%, 7/01/23 – AMBAC Insured | 7/13 at 100.00 | A1 | | 2,601,875 | |
| | 2,190 | | Indiana Bond Bank, Advance Purchase Funding Bonds, Common School Fund, Series 2003B, 5.000%, 8/01/19 – NPFG Insured | 8/13 at 100.00 | A | | 2,255,875 | |
| | 1,860 | | Indiana Municipal Power Agency, Power Supply Revenue Bonds, Series 2007A, 5.000%, 1/01/42 – NPFG Insured | 1/17 at 100.00 | A+ | | 1,898,465 | |
| | 1,000 | | Indiana University, Student Fee Revenue Bonds, Series 2003O, 5.000%, 8/01/22 – FGIC Insured | 8/13 at 100.00 | Aaa | | 1,088,390 | |
| | | | IPS Multi-School Building Corporation, Indiana, First Mortgage Revenue Bonds, Series 2003: | | | | | |
| | 11,020 | | 5.000%, 7/15/19 (Pre-refunded 7/15/13) – NPFG Insured | 7/13 at 100.00 | AA (4) | | 12,286,749 | |
| | 3,000 | | 5.000%, 7/15/20 (Pre-refunded 7/15/13) – NPFG Insured | 7/13 at 100.00 | AA (4) | | 3,344,850 | |
| | 21,570 | | Total Indiana | | | | 23,476,204 | |
| | | | Kansas – 1.6% (1.1% of Total Investments) | | | | | |
| | 5,000 | | Kansas Development Finance Authority, Board of Regents, Revenue Bonds, Scientific Research and Development Facilities Projects, Series 2003C, 5.000%, 10/01/22 – AMBAC Insured | 4/13 at 102.00 | AA | | 5,346,550 | |
| | | | Kentucky – 0.3% (0.2% of Total Investments) | | | | | |
| | 985 | | Kentucky State Property and Buildings Commission, Revenue Refunding Bonds, Project 77, Series 2003, 5.000%, 8/01/23 (Pre-refunded 8/01/13) – NPFG Insured | 8/13 at 100.00 | Aa3 (4) | | 1,101,880 | |
| | | | Louisiana – 2.4% (1.6% of Total Investments) | | | | | |
| | 2,000 | | Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Second Lien Series 2010B, 5.000%, 5/01/45 | 5/20 at 100.00 | AA | | 2,113,880 | |
| | 5,785 | | New Orleans, Louisiana, General Obligation Refunding Bonds, Series 2002, 5.300%, 12/01/27 – FGIC Insured | 12/12 at 100.00 | A3 | | 5,863,965 | |
| | 7,785 | | Total Louisiana | | | | 7,977,845 | |
| | | | Massachusetts – 0.4% (0.2% of Total Investments) | | | | | |
| | 1,125 | | Massachusetts Development Finance Authority, Revenue Bonds, Middlesex School, Series 2003, 5.125%, 9/01/23 | 9/13 at 100.00 | A1 | | 1,173,566 | |
| | | | Michigan – 9.6% (6.6% of Total Investments) | | | | | |
| | 6,130 | | Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, Series 2003A, 5.000%, 7/01/23 (Pre-refunded 7/01/13) – NPFG Insured | 7/13 at 100.00 | A+ (4) | | 6,806,691 | |
| | 4,465 | | Detroit, Michigan, Senior Lien Water Supply System Revenue Refunding Bonds, Series 2003C, 5.000%, 7/01/22 – NPFG Insured | 7/13 at 100.00 | Aa3 | | 4,572,294 | |
| | 1,000 | | Michigan State Hospital Finance Authority, Revenue Bonds, Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31 (UB) | 12/16 at 100.00 | AA | | 1,031,170 | |
| | 10,800 | | Michigan Strategic Fund, Limited Obligation Resource Recovery Revenue Refunding Bonds, Detroit Edison Company, Series 2002D, 5.250%, 12/15/32 – SYNCORA GTY Insured | 12/12 at 100.00 | Baa1 | | 10,873,764 | |
| | 2,250 | | Romulus Community Schools, Wayne County, Michigan, General Obligation Refunding Bonds, Series 2001, 5.250%, 5/01/25 | 5/11 at 100.00 | Aa2 | | 2,281,005 | |
Nuveen Investments 75
| | | Nuveen Insured Tax-Free Advantage Municipal Fund (continued) |
| NEA | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Michigan (continued) | | | | | |
| $ | 6,500 | | Wayne County, Michigan, Limited Tax General Obligation Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport, Series 2001A, 5.000%, 12/01/30 – NPFG Insured | 12/11 at 101.00 | A | $ | 6,256,510 | |
| | 31,145 | | Total Michigan | | | | 31,821,434 | |
| | | | Missouri – 1.0% (0.7% of Total Investments) | | | | | |
| | 240 | | Clay County Public School District 53, Liberty, Missouri, General Obligation Bonds, Series 2004, 5.250%, 3/01/24 – AGM Insured | 3/14 at 100.00 | AA+ | | 265,310 | |
| | 215 | | Clay County Public School District 53, Liberty, Missouri, General Obligation Bonds, Series 2004, 5.250%, 3/01/23 – AGM Insured | 3/14 at 100.00 | AA+ | | 237,674 | |
| | | | Clay County Public School District 53, Liberty, Missouri, General Obligation Bonds, Series 2004: | | | | | |
| | 1,110 | | 5.250%, 3/01/23 (Pre-refunded 3/01/14) – AGM Insured | 3/14 at 100.00 | AA+ (4) | | 1,271,028 | |
| | 1,260 | | 5.250%, 3/01/24 (Pre-refunded 3/01/14) – AGM Insured | 3/14 at 100.00 | AA+ (4) | | 1,442,788 | |
| | 2,825 | | Total Missouri | | | | 3,216,800 | |
| | | | Nebraska – 1.6% (1.1% of Total Investments) | | | | | |
| | 5,000 | | Lincoln, Nebraska, Sanitary Sewerage System Revenue Refunding Bonds, Series 2003, 5.000%, 6/15/28 – NPFG Insured | 6/13 at 100.00 | AA+ | | 5,344,700 | |
| | | | New Mexico – 0.7% (0.5% of Total Investments) | | | | | |
| | 1,975 | | New Mexico State University, Revenue Bonds, Series 2004, 5.000%,
4/01/19 – AMBAC Insured | 4/14 at 100.00 | AA | | 2,181,743 | |
| | | | New York – 10.1% (6.9% of Total Investments) | | | | | |
| | 2,020 | | Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series 2006A, 4.500%, 2/15/47 – NPFG Insured | 2/17 at 100.00 | A | | 1,939,321 | |
| | 25,000 | | Metropolitan Transportation Authority, New York, Transportation Revenue Refunding Bonds, Series 2002F, 5.000%, 11/15/31 – NPFG Insured | 11/12 at 100.00 | A | | 25,705,750 | |
| | 1,850 | | New York State Urban Development Corporation, Service Contract Revenue Bonds, Series 2005B, 5.000%, 3/15/25 – AGM Insured (UB) | 3/15 at 100.00 | AAA | | 1,998,315 | |
| | 3,335 | | New York State Urban Development Corporation, State Personal Income Tax Revenue Bonds, Tender Option Bond Trust 09-6W, 12.814%, 3/15/37 (IF) | 3/17 at 100.00 | AAA | | 3,878,472 | |
| | 32,205 | | Total New York | | | | 33,521,858 | |
| | | | North Carolina – 2.2% (1.5% of Total Investments) | | | | | |
| | 8,700 | | North Carolina Medical Care Commission, Revenue Bonds, Maria Parham Medical Center, Series 2003, 5.375%, 10/01/33 – RAAI Insured | 10/13 at 100.00 | BB | | 7,269,981 | |
| | | | Ohio – 0.7% (0.5% of Total Investments) | | | | | |
| | | | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2: | | | | | |
| | 65 | | 5.125%, 6/01/24 | 6/17 at 100.00 | BBB | | 56,798 | |
| | 710 | | 5.875%, 6/01/30 | 6/17 at 100.00 | BBB | | 598,232 | |
| | 685 | | 5.750%, 6/01/34 | 6/17 at 100.00 | BBB | | 546,274 | |
| | 1,570 | | 5.875%, 6/01/47 | 6/17 at 100.00 | BBB | | 1,201,458 | |
| | 3,030 | | Total Ohio | | | | 2,402,762 | |
| | | | Oklahoma – 0.3% (0.2% of Total Investments) | | | | | |
| | 1,000 | | Oklahoma Capitol Improvement Authority, State Facilities Revenue Bonds, Series 2005F, 5.000%, 7/01/24 – AMBAC Insured | 7/15 at 100.00 | AA | | 1,064,980 | |
| | | | Oregon – 2.5% (1.7% of Total Investments) | | | | | |
| | 8,350 | | Oregon Health Sciences University, Revenue Bonds, Series 2002A, 5.000%, 7/01/32 – NPFG Insured | 1/13 at 100.00 | A1 | | 8,374,967 | |
| | | | Pennsylvania – 7.5% (5.2% of Total Investments) | | | | | |
| | 3,000 | | Lehigh County General Purpose Authority, Pennsylvania, Hospital Revenue Bonds, St. Luke’s Hospital of Bethlehem, Series 2003, 5.375%, 8/15/33 (Pre-refunded 8/15/13) | 8/13 at 100.00 | AAA | | 3,384,720 | |
| | 3,500 | | Pennsylvania Turnpike Commission, Turnpike Subordinate Revenue Bonds, Series 2009C, 0.000%, 6/01/33 – AGM Insured | 6/26 at 100.00 | AA+ | | 2,865,660 | |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Pennsylvania (continued) | | | | | |
| $ | 2,000 | | Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General Ordinance, Fourth Series 1998, 5.000%, 8/01/32 – AGM Insured | 8/13 at 100.00 | AA+ | $ | 2,017,500 | |
| | 925 | | Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, Series 1997A, 5.125%, 8/01/27– AMBAC Insured (ETM) | 1/11 at 100.00 | A1 (4) | | 951,945 | |
| | 1,350 | | Pittsburgh and Allegheny County Sports and Exhibition Authority, Pennsylvania, Sales Tax Revenue Bonds, Refunding Series 2010, 5.000%, 2/01/31 – AGM Insured | 8/20 at 100.00 | AA+ | | 1,419,066 | |
| | 13,000 | | State Public School Building Authority, Pennsylvania, Lease Revenue Bonds, Philadelphia School District, Series 2003, 5.000%, 6/01/33 (Pre-refunded 6/01/13) – AGM Insured | 6/13 at 100.00 | AAA | | 14,424,800 | |
| | 23,775 | | Total Pennsylvania | | | | 25,063,691 | |
| | | | Puerto Rico – 0.8% (0.5% of Total Investments) | | | | | |
| | 1,000 | | Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2002II, 5.125%, 7/01/26 (Pre-refunded 7/01/12) – AGM Insured | 7/12 at 101.00 | AA+ (4) | | 1,087,450 | |
| | 10,350 | | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A, 0.000%, 8/01/43 – NPFG Insured | No Opt. Call | Aa2 | | 1,456,556 | |
| | 11,350 | | Total Puerto Rico | | | | 2,544,006 | |
| | | | South Carolina – 5.5% (3.8% of Total Investments) | | | | | |
| | 5,000 | | Florence County, South Carolina, Hospital Revenue Bonds, McLeod Regional Medical Center, Series 2004A, 5.250%, 11/01/23 – AGM Insured | 11/14 at 100.00 | AA+ | | 5,269,300 | |
| | | | Greenville County School District, South Carolina, Installment Purchase Revenue Bonds, Series 2003: | | | | | |
| | 3,000 | | 5.000%, 12/01/22 (UB) | 12/13 at 100.00 | AA | | 3,139,080 | |
| | 1,785 | | 5.000%, 12/01/23 (UB) | 12/13 at 100.00 | AA | | 1,861,791 | |
| | 8,000 | | South Carolina Transportation Infrastructure Bank, Revenue Bonds, Series 2002A, 5.000%, 10/01/33 – AMBAC Insured | 10/12 at 100.00 | Aa3 | | 8,180,240 | |
| | 17,785 | | Total South Carolina | | | | 18,450,411 | |
| | | | Texas – 7.2% (5.0% of Total Investments) | | | | | |
| | | | Grand Prairie Independent School District, Dallas County, Texas, General Obligation Bonds, Series 2003: | | | | | |
| | 1,660 | | 5.375%, 2/15/26 (Pre-refunded 2/15/13) – AGM Insured | 2/13 at 100.00 | AA+ (4) | | 1,838,317 | |
| | 12,500 | | 5.125%, 2/15/31 (Pre-refunded 2/15/13) – AGM Insured | 2/13 at 100.00 | AA+ (4) | | 13,771,750 | |
| | 2,000 | | Houston, Texas, First Lien Combined Utility System Revenue Bonds, Series 2004A, 5.250%, 5/15/25 – NPFG Insured | 5/14 at 100.00 | AA | | 2,154,260 | |
| | 1,160 | | Houston, Texas, General Obligation Refunding Bonds, Series 2002, 5.250%, 3/01/20 – NPFG Insured | 3/12 at 100.00 | AA | | 1,219,322 | |
| | 4,355 | | Houston, Texas, General Obligation Refunding Bonds, Series 2002, 5.250%, 3/01/20 (Pre-refunded 3/01/12) – NPFG Insured | 3/12 at 100.00 | AA (4) | | 4,622,049 | |
| | 465 | | Katy Independent School District, Harris, Fort Bend and Waller Counties, Texas, General Obligation Bonds, Series 2002A, 5.125%, 2/15/18 | 2/12 at 100.00 | AAA | | 493,463 | |
| | 22,140 | | Total Texas | | | | 24,099,161 | |
| | | | Virginia – 0.5% (0.3% of Total Investments) | | | | | |
| | 1,500 | | Hampton, Virginia, Revenue Bonds, Convention Center Project, Series 2002, 5.125%, 1/15/28 – AMBAC Insured | 1/13 at 100.00 | Aa3 | | 1,534,965 | |
| | | | Washington – 9.4% (6.5% of Total Investments) | | | | | |
| | 4,945 | | Broadway Office Properties, King County, Washington, Lease Revenue Bonds, Washington Project, Series 2002, 5.000%, 12/01/31 – NPFG Insured | 12/12 at 100.00 | AAA | | 5,035,543 | |
| | 5,250 | | Chelan County Public Utility District 1, Washington, Hydro Consolidated System Revenue Bonds, Series 2002C, 5.125%, 7/01/33 – AMBAC Insured | 7/12 at 100.00 | AA | | 5,329,590 | |
| | 5,000 | | King County, Washington, Sewer Revenue Bonds, Series 2006-2, Trust 1200, 13.123%, 1/01/26 – AGM Insured (IF) | 1/17 at 100.00 | AA+ | | 5,943,050 | |
| | 2,135 | | Kitsap County Consolidated Housing Authority, Washington, Revenue Bonds, Bremerton Government Center, Series 2003, 5.000%, 7/01/23 – NPFG Insured | 7/13 at 100.00 | Aa3 | | 2,203,256 | |
Nuveen Investments 77
| | | Nuveen Insured Tax-Free Advantage Municipal Fund (continued) |
| NEA | | Portfolio of Investments October 31, 2010 |
| | Principal Amount (000) | | Description (1) | Optional Call Provisions (2) | Ratings (3) | | Value | |
| | | | Washington (continued) | | | | | |
| $ | 1,935 | | Pierce County School District 343, Dieringer, Washington, General Obligation Refunding Bonds, Series 2003, 5.250%, 12/01/17 – FGIC Insured | 6/13 at 100.00 | Aa1 | $ | 2,162,711 | |
| | 9,670 | | Washington State, General Obligation Bonds, Series 2003D, 5.000%, 12/01/21 – NPFG Insured | 6/13 at 100.00 | AA+ | | 10,735,441 | |
| | 28,935 | | Total Washington | | | | 31,409,591 | |
| | | | West Virginia – 1.0% (0.7% of Total Investments) | | | | | |
| | 3,000 | | West Virginia State Building Commission, Lease Revenue Refunding Bonds, Regional Jail and Corrections Facility, Series 1998A, 5.375%, 7/01/21 – AMBAC Insured | No Opt. Call | N/R | | 3,405,570 | |
| | | | Wisconsin – 5.4% (3.7% of Total Investments) | | | | | |
| | 1,190 | | Sun Prairie Area School District, Dane County, Wisconsin, General Obligation Bonds, Series 2004C, 5.250%, 3/01/24 – AGM Insured | 3/14 at 100.00 | Aa2 | | 1,313,831 | |
| | 4,605 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Franciscan Sisters of Christian Charity Healthcare Ministry, Series 2003A, 5.875%, 9/01/33 (Pre-refunded 9/01/13) | 9/13 at 100.00 | BBB+ (4) | | 5,248,180 | |
| | 3,000 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Meriter Hospital Inc., Series 1992A, 6.000%, 12/01/22 – FGIC Insured | No Opt. Call | A1 | | 3,392,550 | |
| | 3,600 | | Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.125%, 8/15/33 | 8/13 at 100.00 | BBB+ | | 3,367,872 | |
| | 4,750 | | Wisconsin Health and Educational Facilities Authority, Revenue Refunding Bonds, Wausau Hospital Inc., Series 1998A, 5.125%, 8/15/20 – AMBAC Insured | 1/11 at 100.00 | A | | 4,754,086 | |
| | 17,145 | | Total Wisconsin | | | | 18,076,519 | |
| $ | 493,105 | | Total Investments (cost $463,169,664) – 145.8% | | | | 485,758,741 | |
| | | | Floating Rate Obligations – (3.9)% | | | | (13,040,000 | ) |
| | | | MuniFund Term Preferred Shares, at Liquidation Value – (24.9)% (5) | | | | (83,000,000 | ) |
| | | | Other Assets Less Liabilities – 3.2% | | | | 10,729,769 | |
| | | | Auction Rate Preferred Shares, at Liquidation Value – (20.2)% (5) | | | | (67,375,000 | ) |
| | | | Net Assets Applicable to Common Shares – 100% | | | $ | 333,073,510 | |
| | | The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. |
| (1) | | All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. |
| (2) | | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
| (4) | | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. |
| (5) | | MuniFund Term Preferred Shares and Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments are 17.1% and 13.9%, respectively. |
| N/R | | Not rated. |
| (ETM) | | Escrowed to maturity. |
| (IF) | | Inverse floating rate investment. |
| (UB) | | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities for more information. |
See accompanying notes to financial statements.
| | | Statement of |
| | | Assets & Liabilities |
| | | October 31, 2010 |
| | | Insured Quality (NQI | ) | Insured Opportunity (NIO | ) | Premier Insured Income (NIF | ) |
| Assets | | | | | | | | | | |
| Investments, at value (cost $825,172,335, $2,123,130,889 and $414,983,125, respectively) | | $ | 837,641,012 | | $ | 2,204,585,799 | | $ | 433,958,893 | |
| Cash | | | 9,551,577 | | | 10,159,554 | | | 5,325,113 | |
| Receivables: | | | | | | | | | | |
| Dividends and interest | | | 11,474,842 | | | 32,497,074 | | | 6,601,620 | |
| Investments sold | | | — | | | 55,000 | | | 215,000 | |
| Deferred offering costs | | | — | | | — | | | — | |
| Other assets | | | 205,016 | | | 491,180 | | | 110,014 | |
| Total assets | | | 858,872,447 | | | 2,247,788,607 | | | 446,210,640 | |
| Liabilities | | | | | | | | | | |
| Floating rate obligations | | | 59,405,000 | | | 134,833,333 | | | 22,365,000 | |
| Payables: | | | | | | | | | | |
| Investments purchased | | | 9,559,627 | | | 13,456,757 | | | — | |
| Auction Rate Preferred share dividends | | | 15,705 | | | 35,229 | | | 7,583 | |
| Common share dividends | | | 2,347,075 | | | 6,137,523 | | | 1,288,637 | |
| Interest | | | — | | | — | | | — | |
| Offering costs | | | — | | | — | | | — | |
| MuniFund Term Preferred shares, at liquidation value | | | — | | | — | | | — | |
| Variable Rate Demand Preferred shares, at liquidation value | | | — | | | — | | | — | |
Accrued expenses: | | | | | | | | | | |
| Management fees | | | 428,241 | | | 1,106,114 | | | 234,696 | |
| Other | | | 318,430 | | | 975,342 | | | 171,916 | |
| Total liabilities | | | 72,074,078 | | | 156,544,298 | | | 24,067,832 | |
| Auction Rate Preferred shares, at liquidation value | | | 239,200,000 | | | 664,825,000 | | | 130,125,000 | |
| Net assets applicable to Common shares | | $ | 547,598,369 | | $ | 1,426,419,309 | | $ | 292,017,808 | |
| Common shares outstanding | | | 38,409,649 | | | 95,586,903 | | | 19,455,763 | |
| Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) | | $ | 14.26 | | $ | 14.92 | | $ | 15.01 | |
| Net assets applicable to Common shares consist of: | | | | | | | | | | |
| Common shares, $.01 par value per share | | $ | 384,096 | | $ | 955,869 | | $ | 194,558 | |
| Paid-in surplus | | | 538,727,339 | | | 1,333,624,161 | | | 270,637,597 | |
| Undistributed (Over-distribution of) net investment income | | | 8,242,801 | | | 23,443,212 | | | 4,681,453 | |
| Accumulated net realized gain (loss) | | | (12,224,544 | ) | | (13,058,843 | ) | | (2,471,568 | ) |
| Net unrealized appreciation (depreciation) | | | 12,468,677 | | | 81,454,910 | | | 18,975,768 | |
| Net assets applicable to Common shares | | $ | 547,598,369 | | $ | 1,426,419,309 | | $ | 292,017,808 | |
| Authorized shares: | | | | | | | | | | |
| Common | | | 200,000,000 | | | 200,000,000 | | | 200,000,000 | |
| Auction Rate Preferred | | | 1,000,000 | | | 1,000,000 | | | 1,000,000 | |
| MuniFund Term Preferred | | | — | | | — | | | — | |
| Variable Rate Demand Preferred | | | — | | | — | | | — | |
See accompanying notes to financial statements.
Nuveen Investments 79
| | | Statement of |
| | | Assets & Liabilities (continued) |
| | | October 31, 2010 |
| | | Insured Premium Income 2 (NPX | ) | Insured Dividend Advantage (NVG | ) | Insured Tax-Free Advantage (NEA | ) |
| Assets | | | | | | | | | | |
| Investments, at value (cost $747,004,953, $642,264,839 and $463,169,664, respectively) | | $ | 766,032,746 | | $ | 672,363,782 | | $ | 485,758,741 | |
| Cash | | | 3,847,391 | | | 867,750 | | | 3,982,207 | |
| Receivables: | | | | | | | | | | |
| Dividends and interest | | | 12,637,136 | | | 9,881,286 | | | 7,603,654 | |
| Investments sold | | | — | | | 55,981 | | | 5,000 | |
| Deferred offering costs | | | 2,385,018 | | | 1,489,810 | | | 1,355,528 | |
| Other assets | | | 260,919 | | | 154,840 | | | 157,695 | |
| Total assets | | | 785,163,210 | | | 684,813,449 | | | 498,862,825 | |
| Liabilities | | | | | | | | | | |
| Floating rate obligations | | | 57,980,000 | | | 28,413,334 | | | 13,040,000 | |
| Payables: | | | | | | | | | | |
| Investments purchased | | | — | | | 297,649 | | | — | |
| Auction Rate Preferred share dividends | | | — | | | 8,247 | | | 5,577 | |
| Common share dividends | | | 2,107,614 | | | 2,027,579 | | | 1,471,466 | |
| Interest | | | — | | | 265,518 | | | 208,999 | |
| Offering costs | | | 113,518 | | | 444,707 | | | 273,863 | |
| MuniFund Term Preferred shares, at liquidation value | | | — | | | 108,000,000 | | | 83,000,000 | |
| Variable Rate Demand Preferred shares, at liquidation value | | | 219,000,000 | | | — | | | — | |
| Accrued expenses: | | | | | | | | | | |
| Management fees | | | 400,145 | | | 298,860 | | | 231,888 | |
| Other | | | 230,111 | | | 199,874 | | | 182,522 | |
| Total liabilities | | | 279,831,388 | | | 139,955,768 | | | 98,414,315 | |
| Auction Rate Preferred shares, at liquidation value | | | — | | | 91,950,000 | | | 67,375,000 | |
| Net assets applicable to Common shares | | $ | 505,331,822 | | $ | 452,907,681 | | $ | 333,073,510 | |
| Common shares outstanding | | | 37,353,512 | | | 29,802,900 | | | 22,240,032 | |
| Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) | | $ | 13.53 | | $ | 15.20 | | $ | 14.98 | |
| Net assets applicable to Common shares consist of: | | | | | | | | | | |
| Common shares, $.01 par value per share | | $ | 373,535 | | $ | 298,029 | | $ | 222,400 | |
| Paid-in surplus | | | 499,321,192 | | | 424,477,357 | | | 315,330,111 | |
| Undistributed (Over-distribution of) net investment income | | | 5,204,926 | | | 6,171,515 | | | 4,146,478 | |
| Accumulated net realized gain (loss) | | | (18,595,624 | ) | | (8,138,163 | ) | | (9,214,556 | ) |
| Net unrealized appreciation (depreciation) | | | 19,027,793 | | | 30,098,943 | | | 22,589,077 | |
| Net assets applicable to Common shares | | $ | 505,331,822 | | $ | 452,907,681 | | $ | 333,073,510 | |
| Authorized shares: | | | | | | | | | | |
| Common | | | Unlimited | | | Unlimited | | | Unlimited | |
| Auction Rate Preferred | | | Unlimited | | | Unlimited | | | Unlimited | |
| MuniFund Term Preferred | | | — | | | Unlimited | | | Unlimited | |
| Variable Rate Demand Preferred | | | Unlimited | | | — | | | — | |
See accompanying notes to financial statements.
80 Nuveen Investments
| | | Statement of |
| | | Operations |
| | | Year Ended October 31, 2010 |
| | | Insured Quality (NQI | ) | Insured Opportunity (NIO | ) | Premier Insured Income (NIF | ) |
| Investment Income | | $ | 42,943,675 | | $ | 108,249,772 | | $ | 22,186,302 | |
| Expenses | | | | | | | | | | |
| Management fees | | | 4,998,695 | | | 12,887,166 | | | 2,732,977 | |
| Auction fees | | | 362,707 | | | 1,003,491 | | | 195,187 | |
| Dividend disbursing agent fees | | | 50,000 | | | 90,000 | | | 30,000 | |
| Shareholders’ servicing agent fees and expenses | | | 62,120 | | | 107,360 | | | 25,121 | |
| Interest expense and amortization of offering costs | | | 384,131 | | | 884,374 | | | 169,134 | |
| Liquidity fees | | | — | | | — | | | — | |
| Custodian’s fees and expenses | | | 130,238 | | | 343,733 | | | 75,645 | |
| Directors’/Trustees’ fees and expenses | | | 24,956 | | | 58,550 | | | 13,359 | |
| Professional fees | | | 213,851 | | | 263,896 | | | 101,487 | |
| Shareholders’ reports – printing and mailing expenses | | | 127,378 | | | 282,342 | | | 71,643 | |
| Stock exchange listing fees | | | 13,016 | | | 31,239 | | | 9,111 | |
| Other expenses | | | 6,007 | | | 22,634 | | | 21,041 | |
| Total expenses before custodian fee credit and expense reimbursement | | | 6,373,099 | | | 15,974,785 | | | 3,444,705 | |
| Custodian fee credit | | | (8,647 | ) | | (22,659 | ) | | (6,085 | ) |
| Expense reimbursement | | | — | | | — | | | — | |
| Net expenses | | | 6,364,452 | | | 15,952,126 | | | 3,438,620 | |
| Net investment income | | | 36,579,223 | | | 92,297,646 | | | 18,747,682 | |
| Realized and Unrealized Gain (Loss) | | | | | | | | | | |
| Net realized gain (loss) from investments | | | (365,237 | ) | | 3,248,061 | | | 1,205,612 | |
| Change in net unrealized appreciation (depreciation) of investments | | | 22,254,904 | | | 54,668,514 | | | 9,719,823 | |
| Net realized and unrealized gain (loss) | | | 21,889,667 | | | 57,916,575 | | | 10,925,435 | |
| Distributions to Auction Rate Preferred Shareholders | | | | | | | | | | |
| From net investment income | | | (972,939 | ) | | (2,690,399 | ) | | (522,384 | ) |
| From accumulated net realized gains | | | — | | | — | | | — | |
| Decrease in net assets applicable to Common shares from distributions to Auction Rate Preferred shareholders | | | (972,939 | ) | | (2,690,399 | ) | | (522,384 | ) |
| Net increase (decrease) in net assets applicable to Common shares from operations | | $ | 57,495,951 | | $ | 147,523,822 | | $ | 29,150,733 | |
See accompanying notes to financial statements.
Nuveen Investments 81
| | | Statement of |
| | | Operations (continued) |
| | | Year Ended October 31, 2010 |
| | | Insured Premium Income 2 (NPX | ) | Insured Dividend Advantage (NVG | ) | Insured Tax-Free Advantage (NEA | ) |
| Investment Income | | $ | 38,072,977 | | $ | 34,394,093 | | $ | 24,754,075 | |
| Expenses | | | | | | | | | | |
| Management fees | | | 4,662,949 | | | 4,184,758 | | | 3,116,833 | |
| Auction fees | | | 208,370 | | | 143,323 | | | 135,315 | |
| Dividend disbursing agent fees | | | — | | | 30,000 | | | 30,000 | |
| Shareholders’ servicing agent fees and expenses | | | 35,517 | | | 7,529 | | | 4,341 | |
| Interest expense and amortization of offering costs | | | 1,949,577 | | | 3,756,544 | | | 2,203,308 | |
| Liquidity fees | | | 1,830,036 | | | — | | | — | |
| Custodian’s fees and expenses | | | 122,099 | | | 112,331 | | | 86,153 | |
| Directors’/Trustees’ fees and expenses | | | 19,219 | | | 21,040 | | | 15,927 | |
| Professional fees | | | 45,836 | | | 111,719 | | | 94,504 | |
| Shareholders’ reports – printing and mailing expenses | | | 130,232 | | | 105,436 | | | 65,176 | |
| Stock exchange listing fees | | | 12,659 | | | 4,169 | | | 2,570 | |
| Other expenses | | | — | | | — | | | 20,188 | |
| Total expenses before custodian fee credit and expense reimbursement | | | 9,016,494 | | | 8,476,849 | | | 5,774,315 | |
| Custodian fee credit | | | (8,355 | ) | | (2,813 | ) | | (4,140 | ) |
| Expense reimbursement | | | — | | | (820,666 | ) | | (432,427 | ) |
| Net expenses | | | 9,008,139 | | | 7,653,370 | | | 5,337,748 | |
| Net investment income | | | 29,064,838 | | | 26,740,723 | | | 19,416,327 | |
| Realized and Unrealized Gain (Loss) | | | | | | | | | | |
| Net realized gain (loss) from investments | | | 958,435 | | | 91,467 | | | 44,055 | |
| Change in net unrealized appreciation (depreciation) of investments | | | 18,993,472 | | | 11,535,902 | | | 11,384,510 | |
| Net realized and unrealized gain (loss) | | | 19,951,907 | | | 11,627,369 | | | 11,428,565 | |
| Distributions to Auction Rate Preferred Shareholders | | | | | | | | | | |
| From net investment income | | | — | | | (330,957 | ) | | (361,303 | ) |
| From accumulated net realized gains | | | — | | | (83,568 | ) | | — | |
| Decrease in net assets applicable to Common shares from distributions to Auction Rate Preferred shareholders | | | — | | | (414,525 | ) | | (361,303 | ) |
| Net increase (decrease) in net assets applicable to Common shares from operations | | $ | 49,016,745 | | $ | 37,953,567 | | $ | 30,483,589 | |
See accompanying notes to financial statements.
82 Nuveen Investments
| | | Statement of |
| | | Changes in Net Assets |
| | | Insured Quality (NQI) | | Insured Opportunity (NIO) | |
| | | Year Ended 10/31/10 | | Year Ended 10/31/09 | | Year Ended 10/31/10 | | Year Ended 10/31/09 | |
| Operations | | | | | | | | | | | | | |
| Net investment income | | $ | 36,579,223 | | $ | 38,050,658 | | $ | 92,297,646 | | $ | 80,351,687 | |
| Net realized gain (loss) from: | | | | | | | | | | | | | |
| Investments | | | (365,237 | ) | | (3,961,756 | ) | | 3,248,061 | | | 1,491,035 | |
| Forward swaps | | | — | | | — | | | — | | | — | |
| Change in net unrealized appreciation (depreciation) of: | | | | | | | | | | | | | |
| Investments | | | 22,254,904 | | | 70,606,759 | | | 54,668,514 | | | 128,404,860 | |
| Forward swaps | | | — | | | — | | | — | | | — | |
| Distributions to Auction Rate Preferred Shareholders: | | | | | | | | | | | | | |
| From net investment income | | | (972,939 | ) | | (2,175,313 | ) | | (2,690,399 | ) | | (4,883,766 | ) |
| From accumulated net realized gains | | | — | | | — | | | — | | | — | |
| Net increase (decrease) in net assets applicable to Common shares from operations | | | 57,495,951 | | | 102,520,348 | | | 147,523,822 | | | 205,363,816 | |
| Distributions to Common Shareholders | | | | | | | | | | | | | |
| From net investment income | | | (32,559,670 | ) | | (28,915,237 | ) | | (79,910,850 | ) | | (59,230,779 | ) |
| From accumulated net realized gains | | | — | | | — | | | — | | | — | |
| Decrease in net assets applicable to Common shares from distributions to Common shareholders | | | (32,559,670 | ) | | (28,915,237 | ) | | (79,910,850 | ) | | (59,230,779 | ) |
| Capital Share Transactions | | | | | | | | | | | | | |
| Common shares: | | | | | | | | | | | | | |
Issued in the Reorganization(1) | | | — | | | — | | | — | | | 207,492,882 | |
| Net proceeds from shares issued to shareholders due to reinvestment of distributions | | | 1,445,628 | | | 148,339 | | | — | | | — | |
| Repurchased and retired | | | — | | | — | | | (37,551 | ) | | — | |
| Net increase (decrease) in net assets applicable to Common shares from capital share transactions | | | 1,445,628 | | | 148,339 | | | (37,551 | ) | | 207,492,882 | |
| Net increase (decrease) in net assets applicable to Common shares | | | 26,381,909 | | | 73,753,450 | | | 67,575,421 | | | 353,625,919 | |
| Net assets applicable to Common shares at the beginning of year | | | 521,216,460 | | | 447,463,010 | | | 1,358,843,888 | | | 1,005,217,969 | |
| Net assets applicable to Common shares at the end of year | | $ | 547,598,369 | | $ | 521,216,460 | | $ | 1,426,419,309 | | $ | 1,358,843,888 | |
| Undistributed (Over-distribution of) net investment income at the end of year | | $ | 8,242,801 | | $ | 5,239,968 | | $ | 23,443,212 | | $ | 13,750,540 | |
(1) Common shares issued in the Reorganization of Nuveen Florida Premium Income Municipal Fund (NFL).
See accompanying notes to financial statements.
Nuveen Investments 83
| | | Statement of |
| | | Changes in Net Assets (continued) |
| | | Premier Insured Income (NIF) | | Insured Premium Income 2 (NPX) | |
| | | Year Ended 10/31/10 | | Year Ended 10/31/09 | | Year Ended 10/31/10 | | Year Ended 10/31/09 | |
| Operations | | | | | | | | | | | | | |
| Net investment income | | $ | 18,747,682 | | $ | 19,238,723 | | $ | 29,064,838 | | $ | 29,853,041 | |
| Net realized gain (loss) from: | | | | | | | | | | | | | |
| Investments | | | 1,205,612 | | | (28,901 | ) | | 958,435 | | | (3,699,493 | ) |
| Forward swaps | | | — | | | — | | | — | | | — | |
| Change in net unrealized appreciation (depreciation) of: | | | | | | | | | | | | | |
| Investments | | | 9,719,823 | | | 31,808,470 | | | 18,993,472 | | | 57,348,025 | |
| Forward swaps | | | — | | | — | | | — | | | — | |
| Distributions to Auction Rate Preferred Shareholders: | | | | | | | | | | | | | |
| From net investment income | | | (522,384 | ) | | (1,158,067 | ) | | — | | | — | |
| From accumulated net realized gains | | | — | | | — | | | — | | | — | |
| Net increase (decrease) in net assets applicable to Common shares from operations | | | 29,150,733 | | | 49,860,225 | | | 49,016,745 | | | 83,501,573 | |
| Distributions to Common Shareholders | | | | | | | | | | | | | |
| From net investment income | | | (16,982,257 | ) | | (14,137,477 | ) | | (27,753,661 | ) | | (24,989,504 | ) |
| From accumulated net realized gains | | | — | | | — | | | — | | | — | |
| Decrease in net assets applicable to Common shares from distributions to Common shareholders | | | (16,982,257 | ) | | (14,137,477 | ) | | (27,753,661 | ) | | (24,989,504 | ) |
| Capital Share Transactions | | | | | | | | | | | | | |
| Common shares: | | | | | | | | | | | | | |
| Issued in the Reorganization | | | — | | | — | | | — | | | — | |
| Net proceeds from shares issued to shareholders due to reinvestment of distributions | | | 537,718 | | | — | | | — | | | — | |
| Repurchased and retired | | | — | | | — | | | — | | | — | |
| Net increase (decrease) in net assets applicable to Common shares from capital share transactions | | | 537,718 | | | — | | | — | | | — | |
| Net increase (decrease) in net assets applicable to Common shares | | | 12,706,194 | | | 35,722,748 | | | 21,263,084 | | | 58,512,069 | |
| Net assets applicable to Common shares at the beginning of year | | | 279,311,614 | | | 243,588,866 | | | 484,068,738 | | | 425,556,669 | |
| Net assets applicable to Common shares at the end of year | | $ | 292,017,808 | | $ | 279,311,614 | | $ | 505,331,822 | | $ | 484,068,738 | |
| Undistributed (Over-distribution of) net investment income at the end of year | | $ | 4,681,453 | | $ | 3,446,640 | | $ | 5,204,926 | | $ | 3,094,419 | |
See accompanying notes to financial statements.
84 Nuveen Investments
| | | Insured Dividend Advantage (NVG) | | Insured Tax-Free Advantage (NEA) | |
| | | Year Ended 10/31/10 | | Year Ended 10/31/09 | | Year Ended 10/31/10 | | Year Ended 10/31/09 | |
| Operations | | | | | | | | | | | | | |
| Net investment income | | $ | 26,740,723 | | $ | 29,671,614 | | $ | 19,416,327 | | $ | 18,590,630 | |
| Net realized gain (loss) from: | | | | | | | | | | | | | |
| Investments | | | 91,467 | | | (5,791,986 | ) | | 44,055 | | | (1,232,542 | ) |
| Forward swaps | | | — | | | 5,000,000 | | | — | | | — | |
| Change in net unrealized appreciation (depreciation) of: | | | | | | | | | | | | | |
| Investments | | | 11,535,902 | | | 54,873,147 | | | 11,384,510 | | | 34,689,209 | |
| Forward swaps | | | — | | | (1,124,391 | ) | | — | | | — | |
| Distributions to Auction Rate Preferred Shareholders: | | | | | | | | | | | | | |
| From net investment income | | | (330,957 | ) | | (1,745,832 | ) | | (361,303 | ) | | (1,057,458 | ) |
| From accumulated net realized gains | | | (83,568 | ) | | — | | | — | | | — | |
| Net increase (decrease) in net assets applicable to Common shares from operations | | | 37,953,567 | | | 80,882,552 | | | 30,483,589 | | | 50,989,839 | |
| Distributions to Common Shareholders | | | | | | | | | | | | | |
| From net investment income | | | (25,034,436 | ) | | (22,593,095 | ) | | (18,077,924 | ) | | (13,551,237 | ) |
| From accumulated net realized gains | | | (1,218,939 | ) | | — | | | — | | | — | |
| Decrease in net assets applicable to Common shares from distributions to Common shareholders | | | (26,253,375 | ) | | (22,593,095 | ) | | (18,077,924 | ) | | (13,551,237 | ) |
| Capital Share Transactions | | | | | | | | | | | | | |
| Common shares: | | | | | | | | | | | | | |
Issued in the Reorganization(2) | | | — | | | — | | | — | | | 54,285,213 | |
| Net proceeds from shares issued to shareholders due to reinvestment of distributions | | | — | | | — | | | 80,971 | | | — | |
| Repurchased and retired | | | — | | | (117,163 | ) | | — | | | (212,353 | ) |
| Net increase (decrease) in net assets applicable to Common shares from capital share transactions | | | — | | | (117,163 | ) | | 80,971 | | | 54,072,860 | |
| Net increase (decrease) in net assets applicable to Common shares | | | 11,700,192 | | | 58,172,294 | | | 12,486,636 | | | 91,511,462 | |
| Net assets applicable to Common shares at the beginning of year | | | 441,207,489 | | | 383,035,195 | | | 320,586,874 | | | 229,075,412 | |
| Net assets applicable to Common shares at the end of year | | $ | 452,907,681 | | $ | 441,207,489 | | $ | 333,073,510 | | $ | 320,586,874 | |
| Undistributed (Over-distribution of) net investment income at the end of year | | $ | 6,171,515 | | $ | 4,426,545 | | $ | 4,146,478 | | $ | 2,920,016 | |
(2) Common shares issued in the Reorganization of Nuveen Insured Florida Tax-Free Advantage Municipal Fund (NWF).
See accompanying notes to financial statements.
Nuveen Investments 85
| | | Statement of |
| | | Cash Flows |
| | | Year Ended October 31, 2010 |
| | | Insured Quality (NQI | ) | Insured Premium Income 2 (NPX | ) |
| Cash Flows from Operating Activities: | | | | | | | |
| Net Increase (Decrease) in Net Assets Applicable to Common shares from Operations | | $ | 57,495,951 | | $ | 49,016,745 | |
| Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations to net cash provided by (used in) operating activities: | | | | | | | |
| Purchases of investments | | | (87,966,646 | ) | | (74,417,733 | ) |
| Proceeds from sales and maturities of investments | | | 100,460,978 | | | 78,624,772 | |
| Proceeds from (Purchases of) short-term investments, net | | | (12,990,000 | ) | | — | |
| Amortization (Accretion) of premiums and discounts, net | | | (2,909,335 | ) | | (1,477,595 | ) |
| (Increase) Decrease in receivable for dividends and interest | | | 412,853 | | | 697,444 | |
| (Increase) Decrease in receivable for investments sold | | | 2,910,000 | | | 9,679,732 | |
| (Increase) Decrease in other assets | | | (7,266 | ) | | (210,862 | ) |
| Increase (Decrease) in payable for investments purchased | | | 9,559,627 | | | (9,639,100 | ) |
| Increase (Decrease) in payable for Auction Rate Preferred share dividends | | | 3,042 | | | — | |
| Increase (Decrease) in payable for interest | | | — | | | — | |
| Increase (Decrease) in accrued management fees | | | 2,952 | | | 2,238 | |
| Increase (Decrease) in accrued other liabilities | | | 28,350 | | | 58,329 | |
| Net realized (gain) loss from investments | | | 365,237 | | | (958,435 | ) |
| Change in net unrealized (appreciation) depreciation of investments | | | (22,254,904 | ) | | (18,993,472 | ) |
| Taxes paid on undistributed capital gains | | | (118 | ) | | (26 | ) |
| Net cash provided by (used in) operating activities | | | 45,110,721 | | | 32,382,037 | |
| Cash Flows from Financing Activities: | | | | | | | |
| Increase (Decrease) in floating rate obligations | | | 260,000 | | | — | |
| Increase (Decrease) in cash overdraft balance | | �� | — | | | (1,033,897 | ) |
| (Increase) Decrease in cash equivalents | | | — | | | — | |
| Increase (Decrease) in Auction Rate Preferred shares noticed for redemption, at liquidation value | | | — | | | — | |
| (Increase) Decrease in deferred offering costs | | | — | | | 80,724 | |
| Increase (Decrease) in payable for offering costs | | | — | | | 113,518 | |
| Increase (Decrease) in MuniFund Term Preferred shares, at liquidation value | | | — | | | — | |
| Increase (Decrease) in Auction Rate Preferred shares, at liquidation value | | | (6,650,000 | ) | | — | |
| Cash distributions paid to Common shareholders | | | (30,980,521 | ) | | (27,694,991 | ) |
| Net cash provided by (used in) financing activities | | | (37,370,521 | ) | | (28,534,646 | ) |
| Net Increase (Decrease) in Cash | | | 7,740,200 | | | 3,847,391 | |
| Cash at the beginning of year | | | 1,811,377 | | | — | |
| Cash at the End of Year | | | 9,551,577 | | | 3,847,391 | |
Supplemental Disclosure of Cash Flow Information
Non-cash financing activities not included herein consist of reinvestments of Common share distributions of $1,445,628 for Insured Quality (NQI).
| | | Insured Quality (NQI | ) | Insured Premium Income 2 (NPX | ) |
| Cash paid for interest (excluding amortization of offering costs, where applicable) | | $ | 384,131 | | $ | 1,147,236 | |
See accompanying notes to financial statements.
86 Nuveen Investments
| | | Insured Dividend Advantage (NVG | ) | Insured Tax-Free Advantage (NEA | ) |
| Cash Flows from Operating Activities: | | | | | | | |
| Net Increase (Decrease) in Net Assets Applicable to Common shares from Operations | | $ | 37,953,567 | | $ | 30,483,589 | |
| Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations to net cash provided by (used in) operating activities: | | | | | | | |
| Purchases of investments | | | (17,412,699 | ) | | (11,245,321 | ) |
| Proceeds from sales and maturities of investments | | | 15,646,427 | | | 8,685,778 | |
| Proceeds from (Purchases of) short-term investments, net | | | — | | | 3,790,000 | |
| Amortization (Accretion) of premiums and discounts, net | | | (904,865 | ) | | (215,088 | ) |
| (Increase) Decrease in receivable for dividends and interest | | | 124,747 | | | (114,065 | ) |
| (Increase) Decrease in receivable for investments sold | | | 1,383,558 | | | (5,000 | ) |
| (Increase) Decrease in other assets | | | (26,208 | ) | | (18,478 | ) |
| Increase (Decrease) in payable for investments purchased | | | 297,649 | | | — | |
| Increase (Decrease) in payable for Auction Rate Preferred share dividends | | | (242 | ) | | (364 | ) |
| Increase (Decrease) in payable for interest | | | 159,318 | | | 208,999 | |
| Increase (Decrease) in accrued management fees | | | 21,492 | | | 29,949 | |
| Increase (Decrease) in accrued other liabilities | | | (15,372 | ) | | (123,897 | ) |
| Net realized (gain) loss from investments | | | (91,467 | ) | | (44,055 | ) |
| Change in net unrealized (appreciation) depreciation of investments | | | (11,535,902 | ) | | (11,384,510 | ) |
| Taxes paid on undistributed capital gains | | | (4,098 | ) | | (8 | ) |
| Net cash provided by (used in) operating activities | | | 25,595,905 | | | 20,047,529 | |
| Cash Flows from Financing Activities: | | | | | | | |
| Increase (Decrease) in floating rate obligations | | | — | | | — | |
| Increase (Decrease) in cash overdraft balance | | | — | | | — | |
(Increase) Decrease in cash equivalents (1) | | | 106,158,035 | | | — | |
| Increase (Decrease) in Auction Rate Preferred shares noticed for redemption, at liquidation value | | | (106,125,000 | ) | | — | |
| (Increase) Decrease in deferred offering costs | | | 372,060 | | | (1,355,528 | ) |
| Increase (Decrease) in payable for offering costs | | | (79,930 | ) | | 273,863 | |
| Increase (Decrease) in MuniFund Term Preferred shares, at liquidation value | | | — | | | 83,000,000 | |
| Increase (Decrease) in Auction Rate Preferred shares, at liquidation value | | | — | | | (81,375,000 | ) |
| Cash distributions paid to Common shareholders | | | (26,250,238 | ) | | (18,174,260 | ) |
| Net cash provided by (used in) financing activities | | | (25,925,073 | ) | | (17,630,925 | ) |
| Net Increase (Decrease) in Cash | | | (329,168 | ) | | 2,416,604 | |
| Cash at the beginning of year | | | 1,196,918 | | | 1,565,603 | |
| Cash at the End of Year | | | 867,750 | | | 3,982,207 | |
Supplemental Disclosure of Cash Flow Information
Non-cash financing activities not included herein consist of reinvestments of Common share distributions of $80,971 for Insured Tax-Free Advantage (NEA).
| | | Insured Dividend Advantage (NVG | ) | Insured Tax-Free Advantage (NEA | ) |
| Cash paid for interest (excluding amortization of offering costs, where applicable) | | $ | 3,225,166 | | $ | 1,744,837 | |
(1) Segregated for the payment of Auction Rate Preferred shares noticed for redemption at October 31,2009.
See accompanying notes to financial statements.
Nuveen Investments 87
| | | Notes to |
| | | Financial Statements |
1. General Information and Significant Accounting Policies
The funds covered in this report and their corresponding Common share stock exchange symbols are Nuveen Insured Quality Municipal Fund, Inc. (NQI), Nuveen Insured Municipal Opportunity Fund, Inc. (NIO), Nuveen Premier Insured Municipal Income Fund, Inc. (NIF), Nuveen Insured Premium Income Municipal Fund 2 (NPX), Nuveen Insured Dividend Advantage Municipal Fund (NVG) and Nuveen Insured Tax-Free Advantage Municipal Fund (NEA) (collectively, the “Funds”). Common shares of Insured Quality (NQI), Insured Opportunity (NIO), Premier Insured Income (NIF) and Insured Premium Income 2 (NPX) are traded on the New York Stock Exchange (“NYSE”) while Common shares of Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA) are traded on the NYSE Amex. The Funds are registered under the Investment Company Act of 1940, as amen ded, as closed-end, registered investment companies.
During the fiscal year ended October 31, 2009, the following Nuveen Florida closed-end municipal funds were reorganized into the following existing Nuveen national municipal closed-end funds, as follows (collectively, the “Reorganizations”):
| | • | Nuveen Insured Florida Premium Income Municipal Fund (NFL) into Insured Opportunity (NIO); |
| | | |
| | • | Nuveen Insured Florida Tax-Free Advantage Municipal Fund (NWF) into Insured Tax-Free Advantage (NEA). |
Each of these Funds called a special meeting of shareholders, originally scheduled in each case for May 15, 2009, to vote on the Reorganizations. Those meetings were subsequently adjourned to and reconvened in June and July, at which time, shareholders of each of Insured Florida Premium Income (NFL), Insured Florida Tax-Free Advantage (NWF), Insured Opportunity (NIO) and Insured Tax-Free Advantage (NEA) approved its respective Reorganization, with more than 80% of participating shares of each fund voting in favor of the Reorganization.
After the close of business on October 16, 2009, Insured Opportunity (NIO) and Insured Tax-Free Advantage (NEA) acquired all the net assets of Insured Florida Premium Income (NFL) and Insured Florida Tax-Free Advantage (NWF), respectively, pursuant to the plan of Reorganizations described above. The acquisition was accomplished by a tax-free exchange of Insured Florida Premium Income (NFL) and Insured Florida Tax-Free Advantage (NWF) Common shares for Insured Opportunity (NIO) and Insured Tax-Free Advantage (NEA) Common shares, respectively. On October 16, 2009, the net assets of Insured Florida Premium Income (NFL) and Insured Florida Tax-Free Advantage (NWF) were $207,492,882 and $54,285,213, respectively. Insured Florida Premium Income’s (NFL) and Insured Florida Tax-Free Advantage’s (NWF) net assets applicable to Common shares at th at date included $8,234,921 and $3,171,992 of net unrealized appreciation, respectively. Each Fund’s net unrealized appreciation was combined with that of Insured Opportunity (NIO) and Insured Tax-Free Advantage (NEA), respectively. The combined net assets applicable to Common shares of Insured Opportunity (NIO) and Insured Tax-Free Advantage (NEA) immediately after the acquisitions were $1,372,440,081 and $323,751,223, respectively. For accounting and performance reporting purposes, Insured Opportunity (NIO) and Insured Tax-Free Advantage (NEA) are the survivors. Prior to the Reorganizations, each of Insured Florida Premium Income (NFL) and Insured Florida Tax-Free Advantage (NWF) established a reserve for certain costs and expenses associated with the Reorganizations, including amounts estimated for the advancement of legal costs in connection with legal proceedings brought by a shareholder of the funds challenging the Reorganizations. The amount of such reserve is included as a component of Insured Opportunity’s (NIO) and Insured Tax-Free Advantage’s (NEA) “Accrued other expenses” on the Statement of Assets and Liabilities.
Each Fund seeks to provide current income exempt from regular federal income tax, and in the case of Insured Tax-Free Advantage (NEA) the alternative minimum tax applicable to individuals, by investing primarily in a portfolio of municipal obligations issued by state and local government authorities or certain U.S. territories.
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 (“U.S. GAAP”).
Investment Valuation
Common stocks and other equity-type securities are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1. Securities primarily traded on the NASDAQ National Market (“NASDAQ”) are valued, except as indicated below, at the NASDAQ Official Closing Price and are generally classified as Level 1. However, securities traded on a securities exchange or NASDAQ for which there were no transactions on a given day or securities not listed on a securities exchange or NASDAQ are valued at the mean between the quoted bid and ask prices.
Prices of municipal bonds and forward swap contracts are provided by a pricing service approved by the Funds’ Board of Directors/Trustees. These securities are generally classified as Level 2. When price quotes are not readily available (which is usually the case for municipal bonds) the pricing
88 Nuveen Investments
service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer, or market activity, provided by Nuveen Asset Management (the “Adviser”), a wholly-owned subsidiary of Nuveen Investments, Inc. (“Nuveen”). These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.
Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates market value. These securities are generally classified as Level 1 or Level 2, which is usually the case for municipal bonds.
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Funds’ Board of Directors/Trustees or its designee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but be fore the calculation of a Fund’s net asset value (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Funds’ Board of Directors/Trustees or its designee.
Refer to Footnote 2 – Fair Value Measurements for further details on the leveling of securities held by the Funds as of the end of the reporting period.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. At October 31, 2010, Insured Quality (NQI) and Insured Opportunity (NIO) had outstanding when-issued/delayed delivery purchase commitments of $9,559,627 and $13,456,757, respectively. There were no such outstanding purchase commitments in any of the other Funds.
Investment Income
Dividend income is recorded on the ex-dividend date. Interest income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also reflects paydown gains and losses, if any.
Professional Fees
Professional fees presented on 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 Fund shareholders.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions that will enable interest from municipal securities, which is exempt from regular federal income tax, and in the case of Insured Tax-Free Advantage (NEA) the alternative minimum tax applicable to individuals, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Nuveen Investments 89
| | | Notes to |
| | | Financial Statements (continued) |
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
Auction Rate Preferred Shares
Each Fund is authorized to issue Auction Rate Preferred Shares (“ARPS”). The following Funds have issued and outstanding ARPS, $25,000 stated value per share, which approximates market value, as a means of effecting financial leverage. Each Fund’s ARPS are issued in more than one Series. The dividend rate paid by the Funds on each Series is determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and is payable at the end of each rate period. As of October 31, 2010, the number of ARPS outstanding, by Series and in total, for each Fund is as follows:
| | | Insured Quality (NQI | ) | Insured Opportunity (NIO | ) | Premier Insured Income (NIF | ) | Insured Dividend Advantage (NVG | ) | Insured Tax-Free Advantage (NEA | ) |
| Number of shares: | | | | | | | | | | | | | | | | |
| Series M | | | 1,954 | | | 3,319 | | | — | | | 1,247 | | | — | |
| Series T | | | 1,956 | | | 3,319 | | | — | | | 1,217 | | | 1,104 | |
| Series W | | | 1,957 | | | 3,320 | | | 678 | | | — | | | 1,105 | |
| Series W2 | | | — | | | 2,655 | | | — | | | — | | | 486 | ** |
| Series W3 | | | — | | | 1,486 | * | | — | | | — | | | — | |
| Series TH | | | 1,745 | | | 3,319 | | | 2,263 | | | 1,214 | | | — | |
| Series TH2 | | | — | | | 3,321 | | | — | | | — | | | — | |
| Series TH3 | | | — | | | 2,536 | * | | — | | | — | | | — | |
| Series F | | | 1,956 | | | 3,318 | | | 2,264 | | | — | | | — | |
| Total | | | 9,568 | | | 26,593 | | | 5,205 | | | 3,678 | | | 2,695 | |
| * | ARPS issued in the Reorganization of Insured Florida Premium Income (NFL). |
| ** | ARPS issued in the Reorganization of Insured Florida Tax-Free Advantage (NWF). |
Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the ARPS issued by the Funds than there were offers to buy. This meant that these auctions “failed to clear,’’ and that many ARPS shareholders who wanted to sell their shares in these auctions were unable to do so. ARPS shareholders unable to sell their shares received distributions at the “maximum rate’’ applicable to failed auctions as calculated in accordance with the pre-established terms of the ARPS. As of October 31, 2010, the aggregate amount of outstanding ARPS redeemed by each Fund is as follows:
| | | Insured Quality (NQI | ) | Insured Opportunity (NIO | ) | Premier Insured Income (NIF | ) | Insured Premium Income 2 (NPX | ) | Insured Dividend Advantage (NVG | ) | Insured Tax-Free Advantage (NEA | ) |
| ARPS redeemed, at liquidation value | | $ | 78,800,000 | | $ | 126,175,000 | | $ | 30,875,000 | | $ | 268,900,000 | | $ | 141,050,000 | | $ | 105,625,000 | |
During the fiscal year ended October 31, 2010, lawsuits pursuing claims made in a demand letter alleging that Insured Quality (NQI), Premier Insured Income (NIF), Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage’s (NEA) Board of Directors/Trustees breached their fiduciary duties related to the redemption at par of their ARPS had been filed on behalf of shareholders of Insured Quality (NQI), Premier Insured Income (NIF), Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA), against the Adviser, the Nuveen holding company, the majority owner of the holding company, the lone interested director/trustee, and current and former officers of Insured Quality (NQI), Premier Insured Income (NIF), Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA). Nuveen and the other named defendants believe these law suits to be without merit, and all named parties intend to defend themselves vigorously. Insured Quality (NQI), Premier Insured Income (NIF), Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA) believe that these lawsuits will not have a material effect on them or on the Adviser’s ability to serve as investment adviser to them.
90 Nuveen Investments
MuniFund Term Preferred Shares
The following Funds have issued and outstanding MuniFund Term Preferred (“MTP”) Shares, with a $10 stated value per share. Proceeds from the issuance of MTP Shares, net of offering expenses, were used to redeem a portion of each Fund’s outstanding ARPS. Each Fund’s MTP Shares are issued in one Series. Dividends, which are recognized as interest expense for financial reporting purposes, are paid monthly at a fixed annual rate, subject to adjustments in certain circumstances. The MTP Shares trade on the NYSE. As of October 31, 2010, the number of MTP Shares outstanding, fixed annual rate and the NYSE “ticker” symbol for each Fund are as follows:
| | | Insured Dividend Advantage (NVG) | | Insured Tax-Free Advantage (NEA) | |
| | | Shares Outstanding | | Fixed Annual Rate | | NYSE Ticker | | Shares Outstanding | | Fixed Annual Rate | | NYSE Ticker | |
| Series: | | | | | | | | | | | | | | | | | | | |
| 2014 | | | 10,800,000 | | | 2.95 | % | | NVG Pr C | | | — | | | — | % | | — | |
| 2015 | | | — | | | — | | | — | | | 8,300,000 | | | 2.85 | | | NEA Pr C | |
Each Fund is obligated to redeem its MTP Shares by the date as specified in its offering document (“Term Redemption Date”), unless earlier redeemed or repurchased by the Fund. MTP Shares are subject to optional and mandatory redemption in certain circumstances. MTP Shares will be subject to redemption at the option of each Fund (“Optional Redemption Date”), subject to a payment of premium for one year following the Optional Redemption Date (“Premium Expiration Date”), and at par thereafter. MTP Shares also will be subject to redemption, at the option of each Fund, at par in the event of certain changes in the credit rating of the MTP Shares. Each Fund may be obligated to redeem certain of the MTP Shares if the Fund fails to maintain certain asset coverage and leverage ratio requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends. The Term Redemption Date, Optional Redemption Date and Premium Expiration Date for each Fund’s MTP Shares are as follows:
| | | Insured Dividend Advantage (NVG | ) | Insured Tax-Free Advantage (NEA | ) |
| | | Series 2014 | | Series 2015 | |
| Term Redemption Date | | | November 1, 2014 | | | February 1, 2015 | |
| Optional Redemption Date | | | November 1, 2010 | | | February 1, 2011 | |
| Premium Expiration Date | | | November 1, 2011 | | | January 31, 2012 | |
The average liquidation value of MTP Shares outstanding for each Fund during the fiscal year ended October 31, 2010, was as follows:
| | | Insured Dividend Advantage (NVG | ) | Insured Tax-Free Advantage (NEA | )* |
| Average liquidation value of MTP Shares outstanding | | $ | 108,000,000 | | $ | 82,720,280 | |
* For the period January 19, 2010 (first issuance date of shares) through October 31, 2010.
For financial reporting purposes only, the liquidation value of MTP Shares is recorded as a liability on the Statement of Assets and Liabilities. Unpaid dividends on MTP Shares are recognized as a component of “Interest payable” on the Statement of Assets and Liabilities. Dividends paid on MTP Shares are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations.
Net amounts earned by Nuveen as underwriter of each Fund’s MTP Share offering are recorded as reductions of offering costs recognized by the Funds. During the fiscal year ended October 31, 2010, the net amounts earned by Nuveen were as follows:
| | | Insured Dividend Advantage (NVG | ) | Insured Tax-Free Advantage (NEA | )* |
| Net amounts earned by Nuveen | | $ | 2,916 | | $ | 6,029 | |
* For the period January 19, 2010 (first issuance date of shares) through October 31, 2010.
Variable Rate Demand Preferred Shares
Insured Premium Income 2 (NPX) has issued and outstanding 2,190 Series 2 Variable Rate Demand Preferred (“VRDP”) Shares, $100,000 liquidation value per share. The Fund issued its 2,190 Series 1 VRDP Shares in a privately negotiated offering in August 2008. Concurrent with renewing agreements with the liquidity provider for its VRDP Shares in June 2010, the Fund exchanged all its 2,190 Series 1 VRDP Shares for 2,190 Series 2 VRDP Shares. The principal difference in terms between Series 1 and Series 2 VRDP Shares is the requirement that the Fund redeem VRDP Shares
Nuveen Investments 91
| | | Notes to |
| | | Financial Statements (continued) |
owned by the liquidity provider if the VRDP Shares have been owned by the liquidity provider through six months of continuous, unsuccessful remarketing. Proceeds of the Fund’s offering were used to redeem all of the Fund’s outstanding ARPS. The VRDP Shares were offered to institutional buyers as defined pursuant to Rule 144A under the Securities Act of 1933 and have a maturity date of August 1, 2038.
VRDP Shares include a liquidity feature that allows VRDP shareholders to have their shares purchased by a liquidity provider with whom the Fund has contracted in the event that purchase orders for VRDP Shares in a remarketing are not sufficient in number to be matched with the sale orders in that remarketing. The Fund is required to redeem any VRDP Shares that are still owned by the liquidity provider after six months of continuous, unsuccessful remarketing.
Dividends on the VRDP Shares (which are treated as interest payments for financial reporting purposes) are set weekly at a rate established by a remarketing agent; therefore, the market value of the VRDP Shares is expected to approximate its liquidation value. If remarketings for VRDP Shares are continuously unsuccessful for six months, the maximum rate is designed to escalate according to a specified schedule in order to enhance the remarketing agent’s ability to successfully remarket the VRDP Shares.
Subject to certain conditions, VRDP Shares may be redeemed, in whole or in part, at any time at the option of the Fund. The Fund may also redeem certain of the VRDP Shares if the Fund fails to maintain certain asset coverage requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends.
Insured Premium Income 2 (NPX) had all $219,000,000 of its VRDP Shares issued and outstanding during the fiscal year ended October 31, 2010, with an annualized dividend rate of 0.37%.
For financial reporting purposes only, the liquidation value of VRDP Shares is recognized as a liability on the Statement of Assets and Liabilities. Unpaid dividends on VRDP Shares are recognized as a component of “Interest payable” on the Statement of Assets and Liabilities. Dividends paid on the VRDP Shares are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations. In addition to interest expense, each Fund also pays a per annum liquidity fee to the liquidity provider, which is recognized as “Liquidity fees” on the Statement of Operations.
Insurance
Under normal circumstances, and during the period November 1, 2009 through May 2, 2010, the Funds’ investment policies provided that each Fund would invest at least 80% of their managed assets (as defined in Footnote 7 – Management Fees and Other Transactions with Affiliates) in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. For purposes of this 80%, insurers must have a claims paying ability rated at least “A” at the time of purchase by at least one independent rating agency. In addition, each Fund would invest at least 80% of its net assets in municipal securities that are rated at least “AA” at the time of purchase (based on the higher of the rating of the insurer, if any, or the underlying security) by at least one independent rating agency, or ar e unrated but judged to be of similar credit quality by the Adviser, or are backed by an escrow or trust account containing sufficient U.S. Government or U.S. Government agency securities or U.S. Treasury-issued State and Local Government Series securities to ensure timely payment of principal and interest. Inverse floating rate securities whose underlying bonds are covered by insurance are included for purposes of the 80%. Each Fund may have also invested up to 20% of its net assets in municipal securities rated at least “BBB” (based on the higher rating of the insurer, if any, or the underlying bond) or are unrated but judged to be of comparable quality by the Adviser.
Since 2007, the financial status of most major municipal bond insurers has deteriorated substantially, and some insurers have gone out of business, rendering worthless the insurance policies they had written. On May 3, 2010, the Funds’ Board of Directors/Trustees approved changes to each Fund’s insurance investment policies in response to the continuing challenges faced by municipal bond insurers. The changes to each Fund’s investment policies are intended to increase the Funds’ investment flexibility in pursuing their investment objective, while retaining the insured nature of their portfolios. The changes, which were effective immediately, provide that under normal circumstances, each Fund invests at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of pri ncipal and interest. In addition, the municipal securities in each Fund invests will be investment grade at the time of purchase (including (i) bonds insured by investment grade rated insurers or are rated investment grade; (ii) unrated bonds that are judged to be investment grade by the Adviser; and (iii) escrowed bonds). Ratings below BBB are considered to be below investment grade.
Each insured municipal security is covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance. Assuming that the insurer remains creditworthy, the insurance feature of a municipal security guarantees the full payment of principal and interest when due through the life of an insured obligation. Such insurance does not guarantee the market value of the insured obligation or the value of the Fund’s 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 attribu table to the insurance. Portfolio Insurance, in contrast, is effective only while the municipal securities are held by the Funds and is reflected as an expense over the term of the policy. 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.
92 Nuveen Investments
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. In turn, this trust (a) issues floating rate certificates, in face amounts equal to some fraction of the deposited bond’s par amount or market value, that typically pay short-term tax-exempt interest rates to third parties, and (b) issues to a long-term investor (such as one of the Funds) an inverse floating rate certificate (sometimes referred to as an “inverse floater”) that represents all remaining or residual interest in the trust. The income received by the inverse floater holder varies inversely with the short-term rate paid to the floating rate certificates’ holders, and in most circumstances the inverse floater holder bears substantially all of the underlying bond’s downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond’s value. The price of an inverse floating rate security will be more volatile than that of the underlying bond because the interest rate is dependent on not only the fixed coupon rate of the underlying bond but also on the short-term interest paid on the floating rate certificates, and because the inverse floating rate security essentially bears the risk of loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an “externally-deposited inverse floater”), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a “self-deposited inverse floater”). The inverse floater held by a Fund gives the Fund the right (a) to cause the holders of the floating rate certificates to tender their notes at par, and (b) to have the broker transfer the fixed-rate bond held by the trust to the Fund, thereby collapsing the trust. An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as “(IF) – Inverse floating rate investment.R 21; An investment in a self-deposited inverse floater is accounted for as a financing transaction. In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as “(UB) – Underlying bond of an inverse floating rate trust reflected as a financing transaction,” with the Fund accounting for the short-term floating rate certificates issued by the trust as “Floating rate obligations” on the Statement of Assets and Liabilities. In addition, the Fund reflects in “Investment Income” the entire earnings of the underlying bond and recognizes the related interest paid to the holders of the short-term floating rate certificates as a component of “Interest expense and amortization of offering costs” on the Statement of Operations.
During the fiscal year ended October 31, 2010, each Fund invested in externally-deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a “recourse trust” or “credit recovery swap”) (such agreements referred to herein as “Recourse Trusts”) with a broker-dealer by which a Fund agrees to reimburse the broker-dealer, in certain circumstances, for the difference between the liquidation value of the fixed-rate bond held by the trust and the liquidation value of the floating rate certificates issued by the trust plus any shortfalls in interest cash flows. Under these agreements, a Fund’s potential exposure to losses related to or on inverse floaters may increase beyond the value of a Fund’s inverse floater investments as a Fund may potentially be liable to fulfill all amounts owed to holders of the floating rate certificates. At period end, any such shortfall is recognized as “Unrealized depreciation on Recourse Trusts” on the Statement of Assets and Liabilities.
At October 31, 2010, each Fund’s maximum exposure to externally-deposited Recourse Trusts, is as follows:
| | | Insured Quality (NQI | ) | Insured Opportunity (NIO | ) | Premier Insured Income (NIF | ) | Insured Premium Income 2 (NPX | ) | Insured Dividend Advantage (NVG | ) | Insured Tax-Free Advantage (NEA | ) |
| Maximum exposure to Recourse Trusts | | $ | 26,606,650 | | $ | 31,095,000 | | $ | 15,375,000 | | $ | 14,845,000 | | $ | — | | $ | 6,665,000 | |
The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters during the fiscal year ended October 31, 2010, were as follows:
| | | Insured Quality (NQI | ) | Insured Opportunity (NIO | ) | Premier Insured Income (NIF | ) | Insured Premium Income 2 (NPX | ) | Insured Dividend Advantage (NVG | ) | Insured Tax-Free Advantage (NEA | ) |
| Average floating rate obligations outstanding | | $ | 59,318,808 | | $ | 134,833,333 | | $ | 25,384,726 | | $ | 57,980,000 | | $ | 28,413,334 | | $ | 13,040,000 | |
| Average annual interest rate and fees | | | 0.65 | % | | 0.66 | % | | 0.67 | % | | 0.58 | % | | 0.70 | % | | 0.73 | % |
Forward Swap Contracts
Each Fund is authorized to enter into forward interest rate swap contracts consistent with their investment objectives and policies to reduce, increase or otherwise alter its risk profile or to alter its portfolio characteristics (i.e. duration, yield curve positioning and credit quality).
Each Fund’s use of forward interest rate swap transactions is intended to help the Fund manage its overall interest rate sensitivity, either shorter or longer, generally to more closely align a Fund’s interest rate sensitivity with that of the broader market. Forward interest rate swap transactions involve a Fund’s agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the “effective date”). The amount of the payment obligation is based on the notional amount of the swap contract and the termination date of the swap (which is akin to a bond’s maturity). The value of a Fund’s
Nuveen Investments 93
| | | Notes to |
| | | Financial Statements (continued) |
swap commitment would increase or decrease based primarily on the extent to which long-term interest rates for bonds having a maturity of the swap’s termination date increases or decreases. Forward interest rate swap contracts are valued daily. The net amount recorded on these transactions for each counterparty is recognized on the Statement of Assets and Liabilities as a component of “Unrealized appreciation or depreciation on forward swaps” with the change during the fiscal period recognized on the Statement of Operations as a component of “Change in net unrealized appreciation (depreciation) of forward swaps.”
Each Fund may terminate a swap contract prior to the effective date, at which point a realized gain or loss is recognized. When a forward swap is terminated, it ordinarily does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash on a net basis. Net realized gains and losses during the fiscal period are recognized on the Statement of Operations as a component of “Net realized gain (loss) from forward swaps.” Each Fund intends, but is not obligated, to terminate its forward swaps before the effective date. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the credit risk associated with a counterparty failing to honor its commitment to pay any realized gain to the Fund upon termination. The Funds did not enter into forward intere st rate swap transactions during the fiscal year ended October 31, 2010.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Futures contracts, when applicable, expose a Fund to minimal counterparty credit ri sk as they are exchange traded and the exchange’s clearinghouse, which is counterparty to all exchange traded futures, guarantees the futures contracts against default.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a predetermined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up o r down, by at least the pre-determined threshold amount.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
Offering Costs
Costs incurred by Insured Premium Income 2 (NPX) in connection with its offering of VRDP Shares ($2,535,000) were recorded as a deferred charge and will be amortized over the 30-year life of the shares. Costs incurred by Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA) in connection with their offerings of MTP Shares ($1,875,000 and $1,605,000, respectively) were recorded as deferred charges and will be amortized over the 5-year life of the shares. Each Fund’s amortized deferred charges are recognized as a component of “Interest expense and amortization of offering costs” on the Statement of Operations.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on each Fund’s cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which a Fund overdraws its account at the custodian bank.
Indemnifications
Under the Funds’ organizational documents, their officers and directors/trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
94 Nuveen Investments
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates.
2. Fair Value Measurements
In determining the fair value of each Fund’s investments, various inputs are used. These inputs are summarized in the three broad levels listed below:
| | Level 1 – Quoted prices in active markets for identical securities. |
| | Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). |
| | Level 3 – Significant unobservable inputs (including management’s assumptions in determining the fair value of investments). |
The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of October 31, 2010:
| | | | | | | | | | | | | | |
| Insured Quality (NQI) | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Investments: | | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | $ | 824,651,012 | | $ | — | | $ | 824,651,012 | |
| Short-Term Investments | | | — | | | 12,990,000 | | | — | | | 12,990,000 | |
| Total | | $ | — | | $ | 837,641,012 | | $ | — | | $ | 837,641,012 | |
| | | | | | | | | | | | | | |
| Insured Opportunity (NIO) | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Investments: | | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | $ | 2,195,803,799 | | $ | — | | $ | 2,195,803,799 | |
| Short-Term Investments | | | — | | | 8,782,000 | | | — | | | 8,782,000 | |
| Total | | $ | — | | $ | 2,204,585,799 | | $ | — | | $ | 2,204,585,799 | |
| | | | | | | | | | | | | | |
| Premier Insured Income (NIF) | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Investments: | | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | $ | 433,958,893 | | $ | — | | $ | 433,958,893 | |
| | | | | | | | | | | | | | |
| Insured Premium Income 2 (NPX) | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Investments: | | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | $ | 766,032,746 | | $ | — | | $ | 766,032,746 | |
| | | | | | | | | | | | | | |
| Insured Dividend Advantage (NVG) | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Investments: | | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | $ | 670,969,620 | | $ | — | | $ | 670,969,620 | |
| Investment Companies | | | 1,394,162 | | | — | | | — | | | 1,394,162 | |
| Total | | $ | 1,394,162 | | $ | 670,969,620 | | $ | — | | $ | 672,363,782 | |
| | | | | | | | | | | | | | |
| Insured Tax-Free Advantage (NEA) | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Investments: | | | | | | | | | | | | | |
| Municipal Bonds | | $ | — | | $ | 485,758,741 | | $ | — | | $ | 485,758,741 | |
3. Derivative Instruments and Hedging Activities
The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. The Funds did not invest in derivative instruments during the fiscal year ended October 31, 2010.
Nuveen Investments 95
| | | Notes to |
| | | Financial Statements (continued) |
4. Fund Shares
Common Shares
Transactions in Common shares were as follows:
| | Insured Quality (NQI) | | Insured Opportunity (NIO) | | Premier Insured Income (NIF) | |
| | Year Ended 10/31/10 | | Year Ended 10/31/09 | | Year Ended 10/31/10 | | Year Ended 10/31/09 | | Year Ended 10/31/10 | | Year Ended 10/ 31/09 | |
| Common shares: | | | | | | | | | | | | | | | | | | |
| Issued in the Reorganization | | — | | | — | | | — | | | 14,451,767 | * | | — | | | — | |
| Issued to shareholders due to reinvestment of distributions | | 102,819 | | | 11,552 | | | — | | | — | | | 36,155 | | | — | |
| Repurchased and retired | | — | | | — | | | (2,900 | ) | | — | | | — | | | — | |
| | | | | | | | | | | | | | | | | | | |
| Weighted average Common share: | | | | | | | | | | | | | | | | | | |
| Price per share repurchased and retired | | — | | | — | | $ | 12.93 | | | — | | | — | | | — | |
| Discount per share repurchased and retired | | — | | | — | | | 8.57 | % | | — | | | — | | | — | |
| | | Insured Premium Income 2 (NPX) | | Insured Dividend Advantage (NVG) | | Insured Tax-Free Advantage (NEA) | |
| | | Year Ended 10/31/10 | | Year Ended 10/31/09 | | Year Ended 10/31/10 | | Year Ended 10/31/09 | | Year Ended 10/31/10 | | Year Ended 10/31/09 | |
| Common shares: | | | | | | | | | | | | | | | | | | | |
| Issued in the Reorganization | | | — | | | — | | | — | | | — | | | — | | | 3,728,205** | |
| Issued to shareholders due to reinvestment of distributions | | | — | | | — | | | — | | | — | | | 5,430 | | | — | |
| Repurchased and retired | | | — | | | — | | | — | | | (10,400 | ) | | — | | | (19,300 | ) |
| | | | — | | | — | | | — | | | (10,400 | ) | | — | | | 3,708,905 | |
| Weighted average Common share: | | | | | | | | | | | | | | | | | | | |
| Price per share repurchased and retired | | | — | | | — | | | — | | $ | 11.53 | | | — | | $ | 10.98 | |
| Discount per share repurchased and retired | | | — | | | — | | | — | | | 16.82 | % | | — | | | 18.03 | % |
| * | Common shares issued in the Reorganization of Insured Florida Premium Income (NFL). |
| ** | Common shares issued in the Reorganization of Insured Florida Tax-Free Advantage (NWF). |
Preferred Shares
Insured Premium Income 2 (NPX) redeemed all of its outstanding ARPS during the fiscal year ended October 31, 2008.
Transactions in ARPS were as follows:
| | | Insured Quality (NQI) | | Insured Opportunity (NIO) | |
| | | Year Ended 10/31/10 | | Year Ended 10/31/09 | | Year Ended 10/31/10 | | Year Ended 10/31/09 | |
| | | Shares | | Amount | | Shares | | Amount | | Shares | | Amount | | Shares | | Amount | |
| ARPS issued in the | | | | | | | | | | | | | | | | | | | | | | | | | |
| Reorganization: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Series W3 | | | — | | $ | — | | | — | | $ | — | | | — | | $ | — | | | 1,510 | * | $ | 37,750,000 | * |
| Series TH3 | | | — | | | — | | | — | | | — | | | — | | | — | | | 2,577 | * | | 64,425,000 | * |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | — | | | — | | | — | | | — | | | — | | | 4,087 | | | 102,175,000 | |
| ARPS redeemed/and or | | | | | | | | | | | | | | | | | | | | | | | | | |
| noticed for redemption: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Series M | | | (55 | ) | | (1,375,000 | ) | | (431 | ) | | (10,775,000 | ) | | (53 | ) | | (1,325,000 | ) | | (294 | ) | | (7,350,000 | ) |
| Series T | | | (54 | ) | | (1,350,000 | ) | | (430 | ) | | (10,750,000 | ) | | (53 | ) | | (1,325,000 | ) | | (294 | ) | | (7,350,000 | ) |
| Series W | | | (54 | ) | | (1,350,000 | ) | | (429 | ) | | (10,725,000 | ) | | (53 | ) | | (1,325,000 | ) | | (294 | ) | | (7,350,000 | ) |
| Series W2 | | | — | | | — | | | — | | | — | | | (43 | ) | | (1,075,000 | ) | | (236 | ) | | (5,900,000 | ) |
| Series W3 | | | — | | | — | | | — | | | — | | | (24 | ) | | (600,000 | ) | | — | | | — | |
| Series TH | | | (49 | ) | | (1,225,000 | ) | | (383 | ) | | (9,575,000 | ) | | (53 | ) | | (1,325,000 | ) | | (295 | ) | | (7,375,000 | ) |
| Series TH2 | | | — | | | — | | | — | | | — | | | (53 | ) | | (1,325,000 | ) | | (294 | ) | | (7,350,000 | ) |
| Series TH3 | | | — | | | — | | | — | | | — | | | (41 | ) | | (1,025,000 | ) | | — | | | — | |
| Series F | | | (54 | ) | | (1,350,000 | ) | | (430 | ) | | (10,750,000 | ) | | (53 | ) | | (1,325,000 | ) | | (295 | ) | | (7,375,000 | ) |
| | | | (266 | ) | | (6,650,000 | ) | | (2,103 | ) | | (52,575,000 | ) | | (426 | ) | | (10,650,000 | ) | | (2,002 | ) | | (50,050,000 | ) |
| Total | | | (266 | ) | $ | (6,650,000 | ) | | (2,103 | ) | $ | (52,575,000 | ) | | (426 | ) | $ | (10,650,000 | ) | | 2,085 | | $ | 52,125,000 | |
96 Nuveen Investments
| | | Premier Insured Income (NIF) | |
| | | Year Ended 10/31/10 | | Year Ended 10/31/09 | |
| | | Shares | | Amount | | Shares | | Amount | |
| ARPS redeemed/and or noticed for redemption: | | | | | | | | | | | | | |
| Series M | | | — | | $ | — | | | — | | $ | — | |
| Series T | | | — | | | — | | | — | | | — | |
| Series W | | | — | | | — | | | (130 | ) | | (3,250,000 | ) |
| Series TH | | | — | | | — | | | (432 | ) | | (10,800,000 | ) |
| Series F | | | — | | | — | | | (431 | ) | | (10,775,000 | ) |
| Total | | | — | | $ | — | | | (993 | ) | $ | (24,825,000 | ) |
| | | Insured Dividend Advantage (NVG) | | Insured Tax-Free Advantage (NEA) | |
| | | Year Ended 10/31/10 | | Year Ended 10/31/09 | | Year Ended 10/31/10 | | Year Ended 10/31/09 | |
| | | Shares | | Amount | | Shares | | Amount | | Shares | | Amount | | Shares | | Amount | |
| ARPS issued in the Reorganization: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Series W2 | | | — | | $ | — | | | — | | $ | — | | | — | | $ | — | | | 1,070 | ** | $ | 26,750,000 | ** |
| ARPS redeemed/and or noticed for redemption: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Series M | | | — | | | — | | | (1,832 | ) | | (45,800,000 | ) | | — | | | — | | | — | | | — | |
| Series T | | | — | | | — | | | (1,783 | ) | | (44,575,000 | ) | | (1,336 | ) | | (33,400,000 | ) | | (216 | ) | | (5,400,000 | ) |
| Series W | | | — | | | — | | | — | | | — | | | (1,335 | ) | | (33,375,000 | ) | | (216 | ) | | (5,400,000 | ) |
| Series W2 | | | — | | | — | | | — | | | — | | | (584 | ) | | (14,600,000 | ) | | — | | | — | |
| Series TH | | | — | | | — | | | (1,786 | ) | | (44,650,000 | ) | | — | | | — | | | — | | | — | |
| | | | — | | | — | | | (5,401 | ) | | (135,025,000 | ) | | (3,255 | ) | | (81,375,000 | ) | | (432 | ) | | (10,800,000 | ) |
| Total | | | — | | $ | — | | | (5,401 | ) | $ | (135,025,000 | ) | | (3,255 | ) | $ | (81,375,000 | ) | | 638 | | $ | 15,950,000 | |
| * | ARPS issued in the Reorganization of Insured Florida Premium Income (NFL). Prior to the Reorganization, Insured Florida Premium Income (NFL) redeemed 130 and 233 Series W and TH shares, respectively, in the amounts of $3,250,000 and $5,575,000, respectively. |
| ** | ARPS issued in the Reorganization of Insured Florida Tax-Free Advantage (NWF). Prior to the Reorganization, Insured Florida Tax-Free Advantage (NWF) redeemed 90 Series W shares in the amount of $2,250,000. |
Transactions in MTP Shares were as follows:
| | | Insured Dividend Advantage (NVG) | |
| | | Year Ended 10/31/10 | | Year Ended 10/31/09 | |
| | | Shares | | Amount | | Shares | | Amount | |
| MTP Shares issued: | | | | | | | | | | | | | |
| Series 2014 | | | — | | $ | — | | | 10,800,000 | | $ | 108,000,000 | |
| | | Insured Tax-Free Advantage (NEA) | |
| | | Year Ended 10/31/10 | | Year Ended 10/31/09 | |
| | | Shares | | Amount | | Shares | | Amount | |
| MTP Shares issued: | | | | | | | | | | | | | |
| Series 2015 | | | 8,300,000 | | $ | 83,000,000 | | | — | | $ | — | |
During the fiscal year ended October 31, 2010, Insured Premium Income 2 (NPX) completed a private exchange offer in which all of its 2,190 Series 1 VRDP Shares were exchanged for 2,190 Series 2 VRDP Shares.
Nuveen Investments 97
| | | Notes to |
| | | Financial Statements (continued) |
5. Investment Transactions
Purchases and sales (including maturities but excluding short-term investments) during the fiscal year ended October 31, 2010, were as follows:
| | | Insured Quality (NQI | ) | Insured Opportunity (NIO | ) | Premier Insured Income (NIF | ) | Insured Premium Income 2 (NPX | ) | Insured Dividend Advantage (NVG | ) | Insured Tax-Free Advantage (NEA | ) |
| Purchases | | $ | 87,966,646 | | $ | 159,080,400 | | $ | 53,378,430 | | $ | 74,417,733 | | $ | 17,412,699 | | $ | 11,245,321 | |
| Sales and maturities | | | 100,460,978 | | | 141,699,719 | | | 54,840,051 | | | 78,624,772 | | | 15,646,427 | | | 8,685,778 | |
6. Income Tax Information
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.
At October 31, 2010, the cost and unrealized appreciation (depreciation) of investments, as determined on a federal income tax basis, were as follows:
| | | Insured Quality (NQI | ) | Insured Opportunity (NIO | ) | Premier Insured Income (NIF | ) | Insured Premium Income 2 (NPX | ) | Insured Dividend Advantage (NVG | ) | Insured Tax-Free Advantage (NEA | ) |
| Cost of investments | | $ | 769,298,760 | | $ | 1,989,605,663 | | $ | 392,967,513 | | $ | 692,016,216 | | $ | 620,116,083 | | $ | 451,691,391 | |
| Gross unrealized: | | | | | | | | | | | | | | | | | | | |
| Appreciation | | | 42,309,142 | | | 122,222,971 | | | 27,029,934 | | | 40,637,993 | | | 43,307,061 | | | 27,405,101 | |
| Depreciation | | | (33,369,137 | ) | | (42,071,577 | ) | | (8,404,247 | ) | | (24,603,122 | ) | | (19,472,527 | ) | | (6,375,516 | ) |
| Net unrealized appreciation (depreciation) of investments | | $ | 8,940,005 | | $ | 80,151,394 | | $ | 18,625,687 | | $ | 16,034,871 | | $ | 23,834,534 | | $ | 21,029,585 | |
Permanent differences, primarily due to expired capital loss carryforwards, federal taxes paid, taxable market discount and distribution character reclassifications, resulted in reclassifications among the Funds’ components of Common share net assets at October 31, 2010, the Funds’ tax year end, as follows:
| | | Insured Quality (NQI | ) | Insured Opportunity (NIO | ) | Premier Insured Income (NIF | ) | Insured Premium Income 2 (NPX | ) | Insured Dividend Advantage (NVG | ) | Insured Tax-Free Advantage (NEA | ) |
| Paid-in surplus | | $ | 629 | | $ | (16,777 | ) | $ | 88 | | $ | (802,209 | ) | $ | (369,847 | ) | $ | (977,733 | ) |
| Undistributed (Over-distribution of) net investment income | | | (43,781 | ) | | (3,725 | ) | | (8,228 | ) | | 799,330 | | | 369,640 | | | 249,362 | |
| Accumulated net realized gain (loss) | | | 43,152 | | | 20,502 | | | 8,140 | | | 2,879 | | | 207 | | | 728,371 | |
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at October 31, 2010, the Funds’ tax year end, were as follows:
| | | Insured Quality (NQI | ) | Insured Opportunity (NIO | ) | Premier Insured Income (NIF | ) | Insured Premium Income 2 (NPX | ) | Insured Dividend Advantage (NVG | ) | Insured Tax-Free Advantage (NEA | ) |
| Undistributed net tax-exempt income* | | $ | 10,060,777 | | $ | 27,624,417 | | $ | 5,917,120 | | $ | 6,876,370 | | $ | 7,963,302 | | $ | 5,686,189 | |
| Undistributed net ordinary income ** | | | 309 | | | 428,114 | | | — | | | 179 | | | 4,493 | | | 5,353 | |
| Undistributed net long-term capital gains | | | — | | | — | | | — | | | — | | | 99,027 | | | — | |
| * | Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on October 1, 2010, paid on November 1, 2010. |
| ** | Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. |
98 Nuveen Investments
The tax character of distributions paid during the Funds’ tax years ended October 31, 2010 and October 31, 2009, was designated for purposes of the dividends paid deduction as follows:
| 2010 | | Insured Quality (NQI | ) | Insured Opportunity (NIO | ) | Premier Insured Income (NIF | ) | Insured Premium Income 2 (NPX | ) | Insured Dividend Advantage (NVG | ) | Insured Tax-Free Advantage (NEA | ) |
| Distributions from net tax-exempt income *** | | $ | 33,407,345 | | $ | 83,231,805 | | $ | 17,344,874 | | $ | 28,528,827 | | $ | 28,392,303 | | $ | 20,278,475 | |
| Distributions from net ordinary income ** | | | — | | | — | | | — | | | — | | | — | | | — | |
| Distributions from net long-term capital gains **** | | | — | | | — | | | — | | | — | | | 1,302,507 | | | — | |
| 2009 | | Insured Quality (NQI | ) | Insured Opportunity (NIO | ) | Premier Insured Income (NIF | ) | Insured Premium Income 2 (NPX | ) | Insured Dividend Advantage (NVG | ) | Insured Tax-Free Advantage (NEA | ) |
| Distributions from net tax-exempt income | | $ | 30,908,983 | | $ | 61,377,271 | | $ | 15,125,146 | | $ | 26,240,993 | | $ | 24,084,927 | | $ | 14,021,812 | |
| Distributions from net ordinary income ** | | | — | | | 118,143 | | | — | | | — | | | — | | | — | |
| Distributions from net long-term capital gains | | | — | | | — | | | — | | | — | | | — | | | — | |
| ** | Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. |
| *** | The Funds hereby designate these amounts paid during the fiscal year ended October 31, 2010, as Exempt Interest Dividends. |
| **** | The Funds designated as a long-term capital gain dividend, pursuant to the Internal Revenue Code Section 852 (b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended October 31, 2010. |
At October 31, 2010, the Funds’ tax year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
| | | Insured Quality (NQI | ) | Insured Opportunity (NIO | )* | Premier Insured Income (NIF | ) | Insured Premium Income 2 (NPX | ) | Insured Tax-Free Advantage (NEA | )* |
| Expiration: | | | | | | | | | | | | | | | | |
| October 31, 2011 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 97,429 | |
| October 31, 2012 | | | — | | | — | | | — | | | — | | | 236,625 | |
| October 31, 2013 | | | — | | | — | | | — | | | — | | | 4,418,633 | |
| October 31, 2014 | | | 731,585 | | | — | | | — | | | — | | | — | |
| October 31, 2015 | | | — | | | — | | | — | | | — | | | 174,026 | |
| October 31, 2016 | | | 3,901,374 | | | 5,318,344 | | | 1,275,634 | | | 5,960,817 | | | 1,917,479 | |
| October 31, 2017 | | | 217,918 | | | — | | | — | | | 456,587 | | | — | |
| October 31, 2018 | | | 322,087 | | | — | | | — | | | — | | | — | |
| Total | | $ | 5,172,964 | | $ | 5,318,344 | | $ | 1,275,634 | | $ | 6,417,404 | | $ | 6,844,192 | |
| * | A portion of Insured Opportunity’s (NIO) and Insured Tax-Free Advantage’s (NEA) capital loss carryforwards are subject to an annual limitation under the Internal Revenue Code and related regulations. |
During the tax year ended October 31, 2010, the following Funds utilized capital loss carryforwards as follows:
| | | Insured Opportunity (NIO | ) | Premier Insured Income (NIF | ) | Insured Premium Income 2 (NPX | ) | Insured Tax-Free Advantage (NEA | ) |
| Utilized capital loss carryforwards | | $ | 3,268,560 | | $ | 1,213,751 | | $ | 961,315 | | $ | 44,123 | |
At October 31, 2010, $728,305 of Insured Tax-Free Advantage’s (NEA) capital loss carryforward expired.
Nuveen Investments 99
| | | Notes to |
| | | Financial Statements (continued) |
7. Management Fees and Other Transactions with Affiliates
Each Fund’s management fee is separated into two components – a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all fund assets managed by the Adviser. This pricing structure enables each Fund’s shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:
| Average Daily Managed Assets* | | Insured Quality (NQI) Insured Opportunity (NIO) Premier Insured Income (NIF) Insured Premium Income 2 (NPX) Fund-Level Fee Rate |
| For the first $125 million | | | .4500 | % |
| For the next $125 million | | | .4375 | |
| For the next $250 million | | | .4250 | |
| For the next $500 million | | | .4125 | |
| For the next $1 billion | | | .4000 | |
| For the next $3 billion | | | .3875 | |
| For managed assets over $5 billion | | | .3750 | |
| Average Daily Managed Assets* | | Insured Dividend Advantage (NVG) Insured Tax-Free Advantage (NEA) Fund-Level Fee Rate |
| For the first $125 million | | | .4500 | % |
| For the next $125 million | | | .4375 | |
| For the next $250 million | | | .4250 | |
| For the next $500 million | | | .4125 | |
| For the next $1 billion | | | .4000 | |
| For managed assets over $2 billion | | | .3750 | |
The annual complex-level fee for each Fund, payable monthly, is calculated according to the following schedule:
| Complex-Level Managed Asset Breakpoint Level* | Effective Rate at Breakpoint Level |
| $55 billion | | | .2000 | % |
| $56 billion | | | .1996 | |
| $57 billion | | | .1989 | |
| $60 billion | | | .1961 | |
| $63 billion | | | .1931 | |
| $66 billion | | | .1900 | |
| $71 billion | | | .1851 | |
| $76 billion | | | .1806 | |
| $80 billion | | | .1773 | |
| $91 billion | | | .1691 | |
| $125 billion | | | .1599 | |
| $200 billion | | | .1505 | |
| $250 billion | | | .1469 | |
| $300 billion | | | .1445 | |
| * | For the fund-level and complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes the funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen funds, with such daily managed assets defined separately for e ach fund in its management agreement, but excluding assets attributable to investments in other Nuveen funds. As of October 31, 2010, the complex-level fee rate was .1809%. |
100 Nuveen Investments
The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those of its directors/trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Directors/Trustees has adopted a deferred compensation plan for independent directors/trustees that enables directors/trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised funds.
For the first ten years of Insured Dividend Advantage’s (NVG) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily managed assets, for fees and expenses in the amounts and for the time periods set forth below:
Year Ending March 31, | | | Year Ending March 31, | | |
| 2002* | .30 | % | 2008 | .25 | % |
| 2003 | .30 | | 2009 | .20 | |
| 2004 | .30 | | 2010 | .15 | |
| 2005 | .30 | | 2011 | .10 | |
| 2006 | .30 | | 2012 | .05 | |
| 2007 | .30 | | | | |
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured Dividend Advantage (NVG) for any portion of its fees and expenses beyond March 31, 2012.
For the first eight years of Insured Tax-Free Advantage’s (NEA) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily managed assets, for fees and expenses in the amounts and for the time periods set forth below:
Year Ending November 30, | | | Year Ending November 30, | | |
| 2002* | .32 | % | 2007 | .32 | % |
| 2003 | .32 | | 2008 | .24 | |
| 2004 | .32 | | 2009 | .16 | |
| 2005 | .32 | | 2010 | .08 | |
| 2006 | .32 | | | | |
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured Tax-Free Advantage (NEA) for any portion of its fees and expenses beyond November 30, 2010.
8. New Accounting Standards
Fair Value Measurements
On January 21, 2010, Financial Accounting Standards Board issued changes to the authoritative guidance under U.S. GAAP for fair value measurements. The objective of which is to provide guidance on how investment assets and liabilities are to be valued and disclosed. Specifically, the amendment requires reporting entities disclose Level 3 activity for purchases, sales, issuances and settlements in the Level 3 roll-forward on a gross basis rather than as one net number. The effective date of the amendment is for interim and annual periods beginning after December 15, 2010. At this time, management is evaluating the implications of this guidance and the impact it will have to the footnote disclosures, if any.
9. Subsequent Events
Other Matters
During November 2010, Insured Opportunity (NIO) received a demand letter alleging that its Board of Directors breached their fiduciary duties related to the redemption at par of its ARPS. The demand letter has been filed on behalf of shareholders of Insured Opportunity (NIO), against the Adviser, the Nuveen holding company, the majority owner of the holding company, the lone interested trustee, and current and former officers of Insured Opportunity (NIO).
Preferred Shares
During December 2010, Premier Insured Income (NIF) issued $130.9 million of VRDP shares. Immediately following its VRDP issuance, Premier Insured Income (NIF) noticed for redemption at par its remaining $130.125 million ARPS using the VRDP proceeds.
Nuveen Investments 101
| | | Financial |
| | | Highlights |
| | | |
| | | Selected data for a Common share outstanding throughout each period: |
| | | | | | Investment Operations | | Less Distributions | | | | | | | | | | |
| | | Beginning Common Share Net Asset Value | | Net Investment Income | | Net Realized/ Unrealized Gain (Loss | ) | Distributions from Net Investment Income to Auction Rate Preferred Shareholders | (a) | Distributions from Capital Gains to Auction Rate Preferred Shareholders | (a) | Total | | Net Investment Income to Common Share- holders | | Capital Gains to Common Share- holders | | Total | | Discount from Common Shares Repurchased and Retired | | Ending Common Share Net Asset Value | | Ending Market Value | |
| Insured Quality (NQI) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended 10/31: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2010 | | $ | 13.61 | | $ | .95 | | $ | .58 | | $ | (.03 | ) | $ | — | | $ | 1.50 | | $ | (.85 | ) | $ | — | | $ | (.85 | ) | $ | — | | $ | 14.26 | | $ | 14.40 | |
| 2009 | | | 11.68 | | | .99 | | | 1.76 | | | (.06 | ) | | — | | | 2.69 | | | (.76 | ) | | — | | | (.76 | ) | | — | | | 13.61 | | | 13.30 | |
| 2008 | | | 14.88 | | | .99 | | | (3.16 | ) | | (.30 | ) | | — | | | (2.47 | ) | | (.73 | ) | | — | | | (.73 | ) | | — | | | 11.68 | | | 11.15 | |
| 2007 | | | 15.40 | | | .99 | | | (.49 | ) | | (.29 | ) | | — | | | .21 | | | (.73 | ) | | — | | | (.73 | ) | | — | | | 14.88 | | | 13.61 | |
| 2006 | | | 15.31 | | | .99 | | | .24 | | | (.25 | ) | | (.01 | ) | | .97 | | | (.80 | ) | | (.08 | ) | | (.88 | ) | | — | | | 15.40 | | | 14.83 | |
| Insured Opportunity (NIO) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended 10/31: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2010 | | | 14.22 | | | .97 | | | .60 | | | (.03 | ) | | — | | | 1.54 | | | (.84 | ) | | — | | | (.84 | ) | | — | * | | 14.92 | | | 14.83 | |
| 2009 | | | 12.39 | | | .96 | | | 1.66 | | | (.06 | ) | | — | | | 2.56 | | | (.73 | ) | | — | | | (.73 | ) | | — | | | 14.22 | | | 12.98 | |
| 2008 | | | 15.04 | | | .97 | | | (2.62 | ) | | (.30 | ) | | — | * | | (1.95 | ) | | (.70 | ) | | — | * | | (.70 | ) | | — | | | 12.39 | | | 11.15 | |
| 2007 | | | 15.57 | | | .98 | | | (.45 | ) | | (.30 | ) | | (.01 | ) | | .22 | | | (.73 | ) | | (.02 | ) | | (.75 | ) | | — | | | 15.04 | | | 13.56 | |
| 2006 | | | 15.46 | | | .98 | | | .34 | | | (.24 | ) | | (.03 | ) | | 1.05 | | | (.80 | ) | | (.14 | ) | | (.94 | ) | | — | | | 15.57 | | | 14.75 | |
| | | Auction Rate Preferred Shares at End of Period | |
| | | Aggregate Amount Outstanding (000) | | Liquidation Value Per Share | | Asset Coverage Per Share | |
| Insured Quality (NQI) | | | | | | | | | | |
| Year Ended 10/31: | | | | | | | | | | |
| 2010 | | $ | 239,200 | | $ | 25,000 | | $ | 82,232 | |
| 2009 | | | 245,850 | | | 25,000 | | | 78,001 | |
| 2008 | | | 298,425 | | | 25,000 | | | 62,485 | |
| 2007 | | | 318,000 | | | 25,000 | | | 69,808 | |
| 2006 | | | 318,000 | | | 25,000 | | | 71,378 | |
| Insured Opportunity (NIO) | | | | | | | | | | |
| Year Ended 10/31: | | | | | | | | | | |
| 2010 | | | 664,825 | | | 25,000 | | | 78,639 | |
| 2009 | | | 675,475 | | | 25,000 | | | 75,292 | |
| 2008 | | | 623,350 | | | 25,000 | | | 65,315 | |
| 2007 | | | 680,000 | | | 25,000 | | | 69,864 | |
| 2006 | | | 680,000 | | | 25,000 | | | 71,440 | |
102 Nuveen Investments
| | | Ratios/Supplemental Data | |
| Total Returns | | | | | Ratios to Average Net Assets Applicable to Common Shares(c)(d) | | | | |
Based on Market Value | (b) | Based on Common Share Net Asset Value | (b) | Ending Net Assets Applicable to Common Shares (000 | ) | Expenses Including Interest | (e) | Expenses Excluding Interest | | Net Investment Income | | Portfolio Turnover Rate | |
| | | | | | | | | | | | | | |
| 15.03 | % | | 11.30 | % | $ | 547,598 | | | 1.19 | % | | 1.12 | % | | 6.81 | % | | 11 | % |
| 26.98 | | | 23.65 | | | 521,216 | | | 1.32 | | | 1.21 | | | 7.86 | | | 4 | |
| (13.35 | ) | | (17.24 | ) | | 447,463 | | | 1.49 | | | 1.23 | | | 7.03 | | | 7 | |
| (3.48 | ) | | 1.38 | | | 569,958 | | | 1.52 | | | 1.18 | | | 6.53 | | | 5 | |
| 2.76 | | | 6.53 | ** | | 589,928 | | | 1.20 | | | 1.20 | | | 6.49 | | | 13 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| 21.20 | | | 11.08 | | | 1,426,419 | | | 1.14 | | | 1.08 | | | 6.61 | | | 7 | |
| 23.62 | | | 21.18 | | | 1,358,844 | | | 1.29 | | | 1.18 | | | 7.36 | | | 8 | |
| (13.17 | ) | | (13.45 | ) | | 1,005,218 | | | 1.43 | | | 1.19 | | | 6.76 | | | 9 | |
| (3.18 | ) | | 1.49 | | | 1,220,297 | | | 1.41 | | | 1.16 | | | 6.39 | | | 5 | |
| 8.26 | | | 7.05 | ** | | 1,263,172 | | | 1.17 | | | 1.17 | | | 6.38 | | | 13 | |
| (a) | The amounts shown are based on Common share equivalents. |
| (b) | Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. |
| | Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. |
| (c) | Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Auction Rate Preferred shares. |
| (d) | Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | The expense ratios reflect, among other things, the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, as described in Footnote 1 – General Information and Significant Accounting Policies, Inverse Floating Rate Securities. |
| * | Rounds to less than $.01 per share. |
| ** | During the fiscal year ended October 31, 2006, Insured Quality (NQI) and Insured Opportunity (NIO) received payments from the Adviser of $27,762 and $42,338, respectively, to offset losses realized on the disposal of investments purchased in violation of each Fund’s investment restrictions. This reimbursement did not have an impact on the Fund’s Total Return on Common Share Net Asset Value. |
See accompanying notes to financial statements.
Nuveen Investments 103
| | | Financial |
| | | Highlights (continued) |
| | | |
| | | Selected data for a Common share outstanding throughout each period: |
| | | | | Investment Operations | | Less Distributions | | | | | | | |
| | | Beginning Common Share Net Asset Value | | Net Investment Income | | Net Realized/ Unrealized Gain (Loss | ) | Distributions from Net Investment Income to Auction Rate Preferred Shareholders | (a) | Distributions from Capital Gains to Auction Rate Preferred Shareholders | (a) | Total | | Net Investment Income to Common Share- holders | | Capital Gains to Common Share- holders | | Total | | Discount from Common Shares Repurchased and Retired | | Ending Common Share Net Asset Value | | Ending Market Value | |
| Premier Insured Income (NIF) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended 10/31: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2010 | | $ | 14.38 | | $ | .96 | | $ | .57 | | $ | (.03 | ) | $ | — | | $ | 1.50 | | $ | (.87 | ) | $ | — | | $ | (.87 | ) | $ | — | | $ | 15.01 | | $ | 15.50 | |
| 2009 | | | 12.54 | | | .99 | | | 1.64 | | | (.06 | ) | | — | | | 2.57 | | | (.73 | ) | | — | | | (.73 | ) | | — | | | 14.38 | | | 13.10 | |
| 2008 | | | 14.90 | | | .96 | | | (2.37 | ) | | (.31 | ) | | — | | | (1.72 | ) | | (.64 | ) | | — | | | (.64 | ) | | — | | | 12.54 | | | 11.19 | |
| 2007 | | | 15.40 | | | .97 | | | (.47 | ) | | (.29 | ) | | — | | | .21 | | | (.71 | ) | | — | | | (.71 | ) | | — | | | 14.90 | | | 13.25 | |
| 2006 | | | 15.33 | | | .98 | | | .25 | | | (.25 | ) | | (.02 | ) | | .96 | | | (.79 | ) | | (.10 | ) | | (.89 | ) | | — | | | 15.40 | | | 14.60 | |
| Insured Premium Income 2 (NPX) | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended 10/31: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2010 | | | 12.96 | | | .78 | | | .53 | | | — | | | — | | | 1.31 | | | (.74 | ) | | — | | | (.74 | ) | | — | | | 13.53 | | | 13.40 | |
| 2009 | | | 11.39 | | | .80 | | | 1.44 | | | — | | | — | | | 2.24 | | | (.67 | ) | | — | | | (.67 | ) | | — | | | 12.96 | | | 11.86 | |
| 2008 | | | 13.73 | | | .80 | | | (2.32 | ) | | (.20 | ) | | — | | | (1.72 | ) | | (.62 | ) | | — | | | (.62 | ) | | — | | | 11.39 | | | 9.56 | |
| 2007 | | | 14.16 | | | .86 | | | (.39 | ) | | (.26 | ) | | — | | | .21 | | | (.64 | ) | | — | | | (.64 | ) | | — | | | 13.73 | | | 12.18 | |
| 2006 | | | 13.93 | | | .86 | | | .28 | | | (.23 | ) | | — | | | .91 | | | (.68 | ) | | — | | | (.68 | ) | | — | | | 14.16 | | | 13.03 | |
| | | Auction Rate Preferred Shares at End of Period | | Variable Rate Demand Preferred Shares at End of Period | |
| | | Aggregate Amount Outstanding (000 | ) | Liquidation Value Per Share | | Asset Coverage Per Share | | Aggregate Amount Outstanding (000 | ) | Liquidation Value Per Share | | Asset Coverage Per Share | |
| Premier Insured Income (NIF) | | | | | | | | | | | | | | | |
| Year Ended 10/31: | | | | | | | | | | | | | | | | |
| 2010 | | $ | 130,125 | | $ | 25,000 | | $ | 81,103 | | $ | — | | $ | — | | $ | — | |
| 2009 | | | 130,125 | | | 25,000 | | | 78,662 | | | — | | | — | | | — | |
| 2008 | | | 154,950 | | | 25,000 | | | 64,301 | | | — | | | — | | | — | |
| 2007 | | | 161,000 | | | 25,000 | | | 69,938 | | | — | | | — | | | — | |
| 2006 | | | 161,000 | | | 25,000 | | | 71,429 | | | — | | | — | | | — | |
| Insured Premium Income 2 (NPX) | | | | | | | | | | | | | | |
| Year Ended 10/31: | | | | | | | | | | | | | | | | |
| 2010 | | | — | | | — | | | — | | | 219,000 | | | 100,000 | | | 330,745 | |
| 2009 | | | — | | | — | | | — | | | 219,000 | | | 100,000 | | | 321,036 | |
| 2008 | | | — | | | — | | | — | | | 219,000 | | | 100,000 | | | 294,318 | |
| 2007 | | | 268,900 | | | 25,000 | | | 72,696 | | | — | | | — | | | — | |
| 2006 | | | 268,900 | | | 25,000 | | | 74,180 | | | — | | | — | | | — | |
104 Nuveen Investments
| | | | | Ratios/Supplemental Data | |
| Total Returns | | | | Ratios to Average Net Assets Applicable to Common Shares(c)(d) | | | |
Based on Market Value | (b) | Based on Common Share Net Asset Value | (b) | Ending Net Assets Applicable to Common Shares (000 | ) | Expenses Including Interest | (e) | Expenses Excluding Interest | | Net Investment Income | | Portfolio Turnover Rate | |
| | | | | | | | | | | | | | |
| 25.60 | % | | 10.74 | % | $ | 292,018 | | | 1.20 | % | | 1.15 | % | | 6.56 | % | | 12 | % |
| 24.07 | | | 20.90 | | | 279,312 | | | 1.30 | | | 1.23 | | | 7.25 | | | 2 | |
| (11.12 | ) | | (11.92 | ) | | 243,589 | | | 1.42 | | | 1.25 | | | 6.72 | | | 6 | |
| (4.66 | ) | | 1.40 | | | 289,400 | | | 1.38 | | | 1.21 | | | 6.41 | | | 9 | |
| 7.68 | | | 6.46 | | | 299,001 | | | 1.22 | | | 1.22 | | | 6.44 | | | 8 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| 19.70 | | | 10.39 | | | 505,332 | | | 1.82 | | | 1.59 | | | 5.87 | | | 10 | |
| 31.78 | | | 20.15 | | | 484,069 | | | 1.98 | | | 1.47 | | | 6.56 | | | 7 | |
| (17.17 | ) | | (12.98 | ) | | 425,557 | | | 2.13 | | | 1.25 | | | 6.12 | | | 8 | |
| (1.77 | ) | | 1.55 | | | 513,021 | | | 1.76 | | | 1.16 | | | 6.19 | | | 5 | |
| 7.11 | | | 6.75 | | | 528,984 | | | 1.16 | | | 1.16 | | | 6.14 | | | 15 | |
| (a) | The amounts shown are based on Common share equivalents. |
| (b) | Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation.Total returns are not annualized. |
| | Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. |
| (c) | Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Auction Rate Preferred shares and/or Variable Rate Demand Preferred shares, where applicable. |
| (d) | Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | The expense ratios reflect, among other things, payments to Variable Rate Demand Preferred shareholders and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, both as described in Footnote 1 – General Information and Significant Accouting Policies, Variable Rate Demand Preferred Shares and Inverse Floating Rate Securities, respectively. |
See accompanying notes to financial statements.
Nuveen Investments 105
| | | Financial |
| | | Highlights (continued) |
| | | |
| | | Selected data for a Common share outstanding throughout each period: |
| | | | | Investment Operations | | Less Distributions | | | | | | | |
| | | Beginning Common Share Net Asset Value | | Net Investment Income | | Net Realized/ Unrealized Gain (Loss | ) | Distributions from Net Investment Income to Auction Rate Preferred Shareholders | (a) | Distributions from Capital Gains to Auction Rate Preferred Shareholders | (a) | Total | | Net Investment Income to Common Share- holders | | Capital Gains to Common Share- holders | | Total | | Discount from Common Shares Repurchased and Retired | | Ending Common Share Net Asset Value | | Ending Market Value | |
| Insured Dividend Advantage (NVG) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended 10/31: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2010 | | $ | 14.80 | | $ | .90 | | $ | .39 | | $ | (.01 | ) | $ | — | * | $ | 1.28 | | $ | (.84 | ) | $ | (.04 | ) | $ | (.88 | ) | $ | — | | $ | 15.20 | | $ | 14.80 | |
| 2009 | | | 12.85 | | | 1.00 | | | 1.77 | | | (.06 | ) | | — | | | 2.71 | | | (.76 | ) | | — | | | (.76 | ) | | — | * | | 14.80 | | | 13.85 | |
| 2008 | | | 15.09 | | | 1.00 | | | (2.25 | ) | | (.29 | ) | | — | | | (1.54 | ) | | (.70 | ) | | — | | | (.70 | ) | | — | | | 12.85 | | | 11.42 | |
| 2007 | | | 15.50 | | | 1.00 | | | (.38 | ) | | (.28 | ) | | — | | | .34 | | | (.75 | ) | | — | | | (.75 | ) | | — | | | 15.09 | | | 13.71 | |
| 2006 | | | 15.23 | | | 1.01 | | | .33 | | | (.25 | ) | | — | | | 1.09 | | | (.82 | ) | | — | | | (.82 | ) | | — | | | 15.50 | | | 14.89 | |
| Insured Tax-Free Advantage (NEA) | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended 10/31: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2010 | | | 14.42 | | | .87 | | | .52 | | | (.02 | ) | | — | | | 1.37 | | | (.81 | ) | | — | | | (.81 | ) | | — | | | 14.98 | | | 14.95 | |
| 2009 | | | 12.37 | | | .98 | | | 1.86 | | | (.06 | ) | | — | | | 2.78 | | | (.73 | ) | | — | | | (.73 | ) | | — | * | | 14.42 | | | 13.48 | |
| 2008 | | | 14.71 | | | .95 | | | (2.31 | ) | | (.27 | ) | | — | | | (1.63 | ) | | (.71 | ) | | — | | | (.71 | ) | | — | | | 12.37 | | | 11.40 | |
| 2007 | | | 14.93 | | | .97 | | | (.21 | ) | | (.27 | ) | | — | | | .49 | | | (.71 | ) | | — | | | (.71 | ) | | — | | | 14.71 | | | 14.30 | |
| 2006 | | | 14.56 | | | .97 | | | .38 | | | (.24 | ) | | — | | | 1.11 | | | (.74 | ) | | — | | | (.74 | ) | | — | | | 14.93 | | | 14.35 | |
| | | Auction Rate Preferred Shares at End of Period | | MuniFund Term Preferred Shares at End of Period | | Auction Rate Preferred Shares and MuniFund Term Preferred Shares at End of Period | |
| | | Aggregate Amount Outstanding (000 | ) | Liquidation Value Per Share | | Asset Coverage Per Share | | Aggregate Amount Outstanding (000 | ) | Liquidation Value Per Share | | Ending Market Value Per Share | | Average Market Value Per Share | | Asset Coverage Per Share | | Asset Coverage Per $1 Liquidation Preference | |
| Insured Dividend Advantage (NVG) | | | | | | | | | | | | | | | | | | | |
| Year Ended 10/31: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2010 | | $ | 91,950 | | $ | 25,000 | | $ | 148,140 | | $ | 108,000 | | $ | 10 | | $ | 10.22 | | $ | 10.19 | | $ | 32.65 | | $ | 3.27 | |
| 2009 | | | 91,950 | | | 25,000 | | | 80,165 | | | 108,000 | | | 10 | | | — | | | 10.03 | ** | | 32.00 | | | 3.21 | |
| 2008 | | | 226,975 | | | 25,000 | | | 67,189 | | | — | | | — | | | — | | | — | | | — | | | — | |
| 2007 | | | 233,000 | | | 25,000 | | | 73,281 | | | — | | | — | | | — | | | — | | | — | | | — | |
| 2006 | | | 233,000 | | | 25,000 | | | 74,575 | | | — | | | — | | | — | | | — | | | — | | | — | |
| Insured Tax-Free Advantage (NEA) | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended 10/31: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2010 | | | 67,375 | | | 25,000 | | | 148,589 | | | 83,000 | | | 10 | | | 10.14 | | | 10.15 | *** | | 32.15 | | | 3.21 | |
| 2009 | | | 148,750 | | | 25,000 | | | 78,880 | | | — | | | — | | | — | | | — | | | — | | | — | |
| 2008 | | | 132,800 | | | 25,000 | | | 68,124 | | | — | | | — | | | — | | | — | | | — | | | — | |
| 2007 | | | 144,000 | | | 25,000 | | | 72,290 | | | — | | | — | | | — | | | — | | | — | | | — | |
| 2006 | | | 144,000 | | | 25,000 | | | 73,005 | | | — | | | — | | | — | | | — | | | — | | | — | |
106 Nuveen Investments
| | | Ratios/Supplemental Data | |
| Total Returns | | | | | Ratios to Average Net Assets Applicable to Common Shares Before Reimbursement(c) | | Ratios to Average Net Assets Applicable to Common Shares After Reimbursement(c)(d) | | | | |
Based on Market Value | (b) | Based on Common Share Net Asset Value | (b) | Ending Net Assets Applicable to Common Shares (000 | ) | Expenses Including Interest | (e) | Expenses Excluding Interest | | Net Investment Income | | Expenses Including Interest | (e) | Expenses Excluding Interest | | Net Investment Income | | Portfolio Turnover Rate | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 13.51 | % | | 8.89 | % | $ | 452,908 | | | 1.89 | % | | 1.14 | % | | 5.79 | % | | 1.71 | % | | .95 | % | | 5.98 | % | | 2 | % |
| 28.72 | | | 21.54 | | | 441,207 | | | 1.25 | | | 1.17 | | | 6.86 | | | .98 | | | .91 | | | 7.12 | | | 9 | |
| (12.11 | ) | | (10.64 | ) | | 383,035 | | | 1.32 | | | 1.17 | | | 6.48 | | | .98 | | | .83 | | | 6.82 | | | 7 | |
| (3.12 | ) | | 2.25 | | | 449,982 | | | 1.31 | | | 1.14 | | | 6.15 | | | .90 | | | .73 | | | 6.56 | | | 12 | |
| 11.09 | | | 7.39 | | | 462,037 | | | 1.15 | | | 1.15 | | | 6.15 | | | .70 | | | .70 | | | 6.60 | | | 15 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 17.27 | | | 9.76 | | | 333,074 | | | 1.76 | | | 1.17 | | | 5.80 | | | 1.63 | | | 1.04 | | | 5.93 | | | 2 | |
| 25.41 | | | 23.05 | | | 320,587 | | | 1.24 | | | 1.19 | | | 7.14 | | | .99 | | | .94 | | | 7.39 | | | 6 | |
| (15.97 | ) | | (11.56 | ) | | 229,075 | | | 1.26 | | | 1.19 | | | 6.27 | | | .87 | | | .81 | | | 6.66 | | | 8 | |
| 4.59 | | | 3.35 | | | 272,391 | | | 1.19 | | | 1.17 | | | 6.04 | | | .70 | | | .68 | | | 6.53 | | | 6 | |
| 12.82 | | | 7.82 | | | 276,506 | | | 1.19 | | | 1.19 | | | 6.12 | | | .69 | | | .69 | | | 6.61 | | | — | |
| (a) | The amounts shown are based on Common share equivalents. |
| (b) | Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. |
| | |
| | Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. |
| (c) | Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Auction Rate Preferred shares and/or MuniFund Term Preferred shares, where applicable. |
| (d) | After expense reimbursement from Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund’s net cash on deposit with the custodian bank, where applicable. |
| (e) | The expense ratios reflect, among other things, payments to MuniFund Term Preferred shareholders and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, both as described in Footnote 1 – General Information and Significant Accounting Policies, MuniFund Term Preferred Shares and Inverse Floating Rate Securities, respectively. |
| * | Rounds to less than $.01 per share. |
| ** | For the period October 19, 2009 (issuance date of shares) through October 31, 2009. |
| *** | For the period January 19, 2010 (issuance date of shares) through October 31, 2010. |
See accompanying notes to financial statements.
Nuveen Investments 107
Board Members & Officers (Unaudited)
| | | The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board Members of the Funds. The number of board members of the Fund is currently set at nine. None of the board members who are not “interested” persons of the Funds (referred to herein as “independent board members”) has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the board members and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below. |
| | Name, Birthdate & Address | | Position(s) Held with the Funds | | Year First Elected or Appointed and Term(1) | | Principal Occupation(s) Including other Directorships During Past 5 Years | | Number of Portfolios in Fund Complex Overseen by Board Member |
| | | | | | | | | | |
| Independent Board Members: | | | | | | |
| ■ | ROBERT P. BREMNER(2) 8/22/40 333 W. Wacker Drive Chicago, IL 60606 | | Chairman of the Board and Board Member | | 1996 | | Private Investor and Management Consultant; Treasurer and Director, Humanities Council of Washington, D.C. | | 206 |
| | | | | | | | | | |
| ■ | JACK B. EVANS 10/22/48 333 W. Wacker Drive Chicago, IL 60606 | | Board Member | | 1999 | | President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Director and Chairman, United Fire Group, a publicly held company; President Pro Tem of the Board of Regents for the State of Iowa University System; Director, Gazette Companies; Life Trustee of Coe College and the Iowa College Foundation; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. | | 206 |
| | | | | | | | | | |
| ■ | WILLIAM C. HUNTER 3/6/48 333 W. Wacker Drive Chicago, IL 60606 | | Board Member | | 2004 | | Dean, Tippie College of Business, University of Iowa (since 2006); Director (since 2004) of Xerox Corporation; Director (since 2005), Beta Gamma Sigma International Honor Society; formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); formerly, Director (1997-2007), Credit Research Center at Georgetown University. | | 206 |
| | | | | | | | | | |
| ■ | DAVID J. KUNDERT(2) 10/28/42 333 W. Wacker Drive Chicago, IL 60606 | | Board Member | | 2005 | | Director, Northwestern Mutual Wealth Management Company; retired (since 2004) as Chairman, JPMorgan Fleming Asset Management, President and CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Member, Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and chair of Investment Committee, Greater Milwaukee Foundation. | | 206 |
| | | | | | | | | | |
| ■ | WILLIAM J. SCHNEIDER(2) 9/24/44 333 W. Wacker Drive Chicago, IL 60606 | | Board Member | | 1997 | | Chairman of Miller-Valentine Partners Ltd., a real estate investment company; formerly, Senior Partner and Chief Operating Officer (retired, 2004) of Miller-Valentine Group; member, University of Dayton Business School Advisory Council;member, Mid-America Health System board; formerly, member and chair, Dayton Philharmonic Orchestra Association; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank. | | 206 |
108 Nuveen Investments
| | Name, Birthdate & Address | | Position(s) Held with the Funds | | Year First Elected or Appointed and Term(1) | | Principal Occupation(s) Including other Directorships During Past 5 Years | | Number of Portfolios in Fund Complex Overseen by Board Member |
| | | | | | | | | | |
| Independent Board Members: | | | | | | |
| ■ | JUDITH M. STOCKDALE 12/29/47 333 W. Wacker Drive Chicago, IL 60606 | | Board Member | | 1997 | | Executive Director, Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | | 206 |
| | | | | | | | | | |
| ■ | CAROLE E. STONE(2) 6/28/47 333 W. Wacker Drive Chicago, IL 60606 | | Board Member | | 2007 | | Director, Chicago Board Options Exchange (since 2006); Director, C2 Options Exchange, Incorporated (since 2009); formerly, Commissioner, New York State Commission on Public Authority Reform (2010); formerly, Chair, New York Racing Association Oversight Board (2005-2007). | | 206 |
| | | | | | | | | | |
| ■ | TERENCE J. TOTH(2) 9/29/59 333 W. Wacker Drive Chicago, IL 60606 | | Board Member | | 2008 | | Director, Legal & General Investment Management America, Inc. (since 2008); Managing Partner, Promus Capital (since 2008); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Goodman Theatre Board (since 2004), Chicago Fellowship Boards (since 2005), University of Illinois Leadership Council Board (since 2007) and Catalyst Schools of Chicago Board (since 2008); formerly, member: Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004). | | 206 |
| | | | | | | | | | |
| Interested Board Member: | | | | | |
| ■ | JOHN P. AMBOIAN(3) 6/14/61 333 W. Wacker Drive Chicago, IL 60606 | | Board Member | | 2008 | | Chief Executive Officer (since July 2007), Director (since 1999) and Chairman (since 2007) of Nuveen Investments, Inc.; Chief Executive Officer (since 2007) of Nuveen Asset Management, Nuveen Investments Advisors, Inc. | | 206 |
| | | | | | | | | | |
| Officers of the Funds: | | | | | | |
■ | GIFFORD R. ZIMMERMAN 9/9/56 333 W. Wacker Drive Chicago, IL 60606 | | Chief Administrative Officer | | 1988 | | Managing Director (since 2002), Assistant Secretary and Associate General Counsel of Nuveen Investments, LLC; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Managing Director, Associate General Counsel and Assistant Secretary, of Nuveen Asset Management (since 2002) and of Symphony Asset Management LLC, (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC. (since 2002), Nuveen Investments Advisers Inc. (since 2002), Tradewinds Global Investors, LLC, and Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group LLC and Nuveen Investment Solutions, Inc. (since 2007) an d of Winslow Capital Management, Inc. (since 2010); Chief Administrative Officer and Chief Compliance Officer (since 2010) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. | | 206 |
Nuveen Investments 109
Board Members & Officers (Unaudited) (continued)
| | Name, Birthdate and Address | | Position(s) Held with the Funds | | Year First Elected or Appointed(4) | | Principal Occupation(s) During Past 5 Years | | Number of Portfolios in Fund Complex Overseen by Officer |
| | | | | | | | | | |
| Officers of the Funds: | | | | | | |
| ■ | WILLIAM ADAMS IV 6/9/55 333 W. Wacker Drive Chicago, IL 60606 | | Vice President | | 2007 | | Executive Vice President of Nuveen Investments, Inc.; Executive Vice President, U.S. Structured Products of Nuveen Investments, LLC, (since 1999),; Managing Director (since 2010) of Nuveen Commodities Asset Management, LLC. | | 131 |
| | | | | | | | | | |
| ■ | MARGO L. COOK 4/11/64 333 W. Wacker Drive Chicago, IL 60606 | | Vice President | | 2009 | | Executive Vice President (since 2008) of Nuveen Investments, Inc.; previously, Head of Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Management (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. | | 206 |
| | | | | | | | | | |
| ■ | LORNA C. FERGUSON 10/24/45 333 W. Wacker Drive Chicago, IL 60606 | | Vice President | | 1998 | | Managing Director (since 2004) of Nuveen Investments, LLC and Managing Director (since 2005) of Nuveen Asset Management. | | 206 |
| | | | | | | | | | |
| ■ | STEPHEN D. FOY 5/31/54 333 W. Wacker Drive Chicago, IL 60606 | | Vice President and Controller | | 1998 | | Senior Vice President (since 2010), formerly, Vice President (1993-2010) and Funds Controller (since 1998) of Nuveen Investments, LLC; Senior Vice President (since 2010), formerly, Vice President (2005-2010) of Nuveen Asset Management; Certified Public Accountant. | | 206 |
| | | | | | | | | | |
| ■ | SCOTT S. GRACE 8/20/70 333 W. Wacker Drive Chicago, IL 60606 | | Vice President and Treasurer | | 2009 | | Managing Director, Corporate Finance & Development, Treasurer (since 2009) of Nuveen Investments, LLC; Managing Director and Treasurer of Nuveen Asset Management (since 2009); Nuveen Investment Solutions, Inc., Nuveen Investments Advisers, Inc., and Nuveen Investments Holdings, Inc.; Vice President and Treasurer of NWQ Investment Management Company, LLC, Tradewinds Global Investors, LLC, Symphony Asset Management LLC and Winslow Capital Management, Inc.; Vice President of Santa Barbara Asset Management, LLC; formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanley’s Global Financial Services Group (2000-2003); Chartered Accountant Designation. | | 206 |
| | | | | | | | | | |
| ■ | WALTER M. KELLY 2/24/70 333 W. Wacker Drive Chicago, IL 60606 | | Chief Compliance Officer and Vice President | | 2003 | | Senior Vice President (since 2008), Vice President (2006-2008) formerly, Assistant Vice President and Assistant General Counsel (2003-2006) of Nuveen Investments, LLC; Senior Vice President (since 2008), formerly, Vice President (2006-2008) and Assistant Secretary (since 2008) of Nuveen Asset Management. | | 206 |
| | | | | | | | | | |
| ■ | TINA M. LAZAR 8/27/61 333 W. Wacker Drive Chicago, IL 60606 | | Vice President | | 2002 | | Senior Vice President (since 2009), formerly, Vice President of Nuveen Investments, LLC (1999-2009); Senior Vice President (since 2010), formerly, Vice President (2005-2010) of Nuveen Asset Management. | | 206 |
110 Nuveen Investments
| | Name, Birthdate and Address | | Position(s) Held with the Funds | | Year First Elected or Appointed(4) | | Principal Occupation(s) During Past 5 Years | | Number of Portfolios in Fund Complex Overseen by Officer |
| | | | | | | | | | |
| Officers of the Funds: | | | | | | |
| ■ | KEVIN J. MCCARTHY 3/26/66 333 W. Wacker Drive Chicago, IL 60606 | | Vice President and Secretary | | 2007 | | Managing Director (since 2008), formerly, Vice President (2007-2008), Nuveen Investments, LLC; Managing Director (since 2008), formerly, Vice President, and Assistant Secretary, Nuveen Asset Management, and Nuveen Investments Holdings, Inc.; Vice President (since 2007) and Assistant Secretary, Nuveen Investment Advisers Inc., NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, NWQ Holdings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management LLC, Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007) and of Winslow Capital Management, Inc. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC; prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997-2007). | | 206 |
| (1) | For Insured Premium Income 2 (NPX), Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA), the Board of Trustees is divided into three classes, Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders’ meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed, except two board members are elected by the holders of Preferred Shares to serve until the next annual shareholders’ meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. For Insured Quality (NQI), Insured Opportunity (NIO) and Premier Insured Income (NIF), the Board Members serve a one year term to serve until the next annual meeting or until their successors shall have been duly elected and qualified. The 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. |
| (2) | Also serves as a trustee of the Nuveen Diversified Commodity Fund, an exchange-traded commodity pool managed by Nuveen Commodities Asset Management, LLC, an affiliate of Nuveen Asset Management. |
| (3) | Mr. Amboian is an interested trustee because of his position with Nuveen Investments, Inc. and certain of its subsidiaries, which are affiliates of the Nuveen Funds. |
| (4) | Officers serve one year terms through August 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. |
Nuveen Investments 111
Annual Investment Management
Agreement Approval Process (Unaudited)
The Investment Company Act of 1940, as amended (the “1940 Act”), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuance is approved at least annually by the fund’s board members, including by a vote of a majority of the board members who are not parties to the advisory agreement or “interested persons” of any parties (the “Independent Board Members”), cast in person at a meeting called for the purpose of considering such approval. In connection with such approvals, the fund’s board members must request and evaluate, and the investment adviser is requir ed to furnish, such information as may be reasonably necessary to evaluate the terms of the advisory agreement. Accordingly, at a meeting held on May 25-26, 2010 (the “May Meeting”), the Boards of Directors or Trustees (as the case may be) (each, a “Board” and each Director or Trustee, a “Board Member”) of the Funds, including a majority of the Independent Board Members, considered and approved the continuation of the advisory agreements (each, an “Advisory Agreement”) between each Fund and Nuveen Asset Management (the “Adviser”) for an additional one-year period. In preparation for their considerations at the May Meeting, the Board also held a se parate meeting on April 21-22, 2010 (the “April Meeting”). Accordingly, the factors considered and determinations made regarding the renewals by the Independent Board Members include those made at the April Meeting.
In addition, in evaluating the Advisory Agreements, the Independent Board Members reviewed a broad range of information relating to the Funds and the Adviser, including absolute and comparative performance, fee and expense information for the Funds (as described in more detail below), the profitability of Nuveen for its advisory activities (which includes its wholly owned subsidiaries), and other information regarding the organization, personnel, and services provided by the Adviser. The Independent Board Members also met quarterly as well as at other times as the need arose during the year and took into account the information provided at such meetings and the knowledge gained therefrom. Prior to approving the renewal of the Advisory Agreements, the Independent Board Members reviewed the foregoing information with their independent legal counsel and with managemen t, reviewed materials from independent legal counsel describing applicable law and their duties in reviewing advisory contracts, and met with independent legal counsel in private sessions without management present. The Independent Board Members considered the legal advice provided by independent legal counsel and relied upon their knowledge of the Adviser, its services and the Funds resulting from their meetings and other interactions throughout the year and their own business judgment in determining the factors to be considered in evaluating the Advisory Agreements. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to a Fund’s Advisory Agreement. The Independent Board Members did not identify any single factor as all-important or controlling. The Independent Board Members’ considerations were instead
112 Nuveen Investments
based on a comprehensive consideration of all the information presented. The principal factors considered by the Board and its conclusions are described below.
A. Nature, Extent and Quality of Services
In considering renewal of the Advisory Agreements, the Independent Board Members considered the nature, extent and quality of the Adviser’s services, including advisory services and administrative services. The Independent Board Members reviewed materials outlining, among other things, the Adviser’s organization and business; the types of services that the Adviser or its affiliates provide and are expected to provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and any initiatives Nuveen had taken for the applicable fund product line, including continued activities to refinance auction rate preferred securities, manage leverage during periods of market turbulence and implement an enhanced leverage management process, modify investment mandates in light of market conditions and seek shareholder appro val as necessary, maintain the fund share repurchase program and maintain shareholder communications to keep shareholders apprised of Nuveen’s efforts in refinancing preferred shares. In addition to the foregoing, the Independent Board Members also noted the additional services that the Adviser or its affiliates provide to closed-end funds, including, in particular, Nuveen’s continued commitment to supporting the secondary market for the common shares of its closed-end funds through a variety of programs designed to raise investor and analyst awareness and understanding of closed-end funds. These efforts include maintaining an investor relations program to provide timely information and education to financial advisers and investors; providing marketing for the closed-end funds; maintaining and enhancing a closed-end fund website; participating in conferences and having direct communications with analysts and financial advisors.
As part of their review, the Independent Board Members also evaluated the background, experience and track record of the Adviser’s investment personnel. In this regard, the Independent Board Members considered any changes in the personnel, and the impact on the level of services provided to the Funds, if any. The Independent Board Members also reviewed information regarding portfolio manager compensation arrangements to evaluate the Adviser’s ability to attract and retain high quality investment personnel, preserve stability, and reward performance but not provide an incentive for taking undue risks.
In addition to advisory services, the Independent Board Members considered the quality of administrative services provided by the Adviser and its affiliates including product management, fund administration, oversight of service providers, shareholder services, administration of Board relations, regulatory and portfolio compliance and legal support. Given the importance of compliance, the Independent Board Members also considered the Adviser’s compliance program, including the report of the chief compliance officer regarding the Funds’ compliance policies and procedures.
Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided (and expected to be provided) to the respective Funds under the Advisory Agreements were satisfactory.
B. The Investment Performance of the Funds and the Adviser
The Board considered the performance results of each Fund over various time periods. The Board reviewed, among other things, each Fund’s historic investment performance as well as information comparing the Fund’s performance information with that of other
Nuveen Investments 113
Annual Investment Management
Agreement Approval Process (Unaudited) (continued)
funds (the “Performance Peer Group”) based on data provided by an independent provider of mutual fund data and with recognized and/or customized benchmarks. In this regard, the Board reviewed each Fund’s total return information compared to its Performance Peer Group for the quarter, one-, three-and five-year periods ending December 31, 2009 and for the same periods ending March 31, 2010. In addition, the Board reviewed each Fund’s total return information compared to recognized and/or customized benchmarks for the quarter, one-and three-year periods ending December 31, 2009 and for the same periods ending March 31, 2010. Moreover, the Board reviewed the peer ranking of the Nuveen municipal funds advised by the Adviser in the aggregate. The Independent Board Members also reviewed historic premium and discount levels. This information supplemented the Fund performance information provided to the Board at each of its quarterly meetings. In reviewing peer comparison information, the Independent Board Members recognized that the Performance Peer Group of certain funds may not adequately represent the objectives and strategies of the funds, thereby limiting the usefulness of comparing a fund’s performance with that of its Performance Peer Group.
Based on their review, the Independent Board Members determined that each Fund’s investment performance over time had been satisfactory. In this regard, the Independent Board Members noted that the performance of the Nuveen Insured Quality Municipal Fund, Inc. (the “Quality Fund”), the Nuveen Insured Municipal Opportunity Fund, Inc. (the “Municipal Opportunity Fund”) and the Nuveen Insured Premium Income Municipal Fund 2 (the “Premium Income Fund 2”) over time was satisfactory compared to peers, falling within the second or third quartile over various periods. Further, they noted that although the Nuveen Insured Tax-Free Advantage Municipal Fund (the “Tax-Free Advantage Fund”), the Nuveen Insured Dividend Advantage Municipal Fund (the “Dividend Advantage Fund”) and the Nuveen Premier Insured Municipal Income Fund, Inc. (the “Premier Fund”) lagged their peers somewhat in the short-term one-year period, they demonstrated more favorable performance in the longer three-and five-year periods.
C. Fees, Expenses and Profitability
1. Fees and Expenses
The Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund’s gross management fees, net management fees and net expense ratios in absolute terms as well as compared to the fee and expenses of a comparable universe of funds based on data provided by an independent fund data provider (the “Peer Universe”) and in certain cases, to a more focused subset of funds in the Peer Universe (the “Peer Group”) and any expense limitations.
The Independent Board Members further reviewed the methodology regarding the construction of the applicable Peer Universe and/or Peer Group. In reviewing the comparisons of fee and expense information, the Independent Board Members took into account that in certain instances various factors such as: the asset level of a fund relative to peers; the limited size and particular composition of the Peer Universe or Peer Group; the investment objectives of the peers; expense anomalies; changes in the funds comprising the Peer Universe or Peer Group from year to year; levels of reimbursement; the timing of information used; and the differences in the type and use of leverage may impact the comparative data, thereby limiting the ability to make
114 Nuveen Investments
a meaningful comparison with peers, including, in particular, for the Tax-Free Advantage Fund and the Dividend Advantage Fund.
In reviewing the fee schedule for a Fund, the Independent Board Members also considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen (applicable, in particular, for certain closed-end funds launched since 1999). The Independent Board Members recognized that the Municipal Opportunity Fund, the Premium Income Fund 2, the Quality Fund and the Premier Fund each had net management fees and net expense ratios above the peer averages; however, the Independent Board Members recognized that limited peers were available for comparison. Each other Fund had management fees and/or a net expense ratio below, at or near (within 5 basis points or less) the peer average of its Peer Group or Peer Universe.
Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund’s management fees were reasonable in light of the nature, extent and quality of services provided to the Fund.
2. Comparisons with the Fees of Other Clients
The Independent Board Members further reviewed information regarding the nature of services and fee rates offered by the Adviser to other clients, including municipal separately managed accounts and passively managed municipal bond exchange traded funds (ETFs) that are sub-advised by the Adviser. In evaluating the comparisons of fees, the Independent Board Members noted that the fee rates charged to the Funds and other clients vary, among other things, because of the different services involved and the additional regulatory and compliance requirements associated with registered investment companies, such as the Funds. Accordingly, the Independent Board Members considered the differences in the product types, including, but not limited to, the services provided, the structure and operations, product distribution and costs thereof, portfolio investment policies, inv estor profiles, account sizes and regulatory requirements. The Independent Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. Given the inherent differences in the products, particularly the extensive services provided to the Funds, the Independent Board Members believe such facts justify the different levels of fees.
3. Profitability of Nuveen
In conjunction with its review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities (which incorporated Nuveen’s wholly-owned affiliated sub-advisers) and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen’s advisory activities for the last two years, the allocation methodology used in preparing the profitability data and an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2009. The Independent Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Independent Board Members n oted that they had also appointed an Independent Board Member as
Nuveen Investments 115
Annual Investment Management Agreement
Approval Process (Unaudited) (continued)
a point person to review and keep them apprised of changes to the profitability analysis and/or methodologies during the year. The Independent Board Members also considered Nuveen’s revenues for advisory activities, expenses, and profit margin compared to that of various unaffiliated management firms with similar amounts of assets under management and relatively comparable asset composition prepared by Nuveen.
In reviewing profitability, the Independent Board Members recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses. Further, the Independent Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, the adviser’s particular business mix, capital costs, types of funds managed and expense allocations. Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen’s methodology and assumptions for allocating expenses across product lines to determine profitability. In reviewing profitability, the Indepen dent Board Members recognized Nuveen’s investment in its fund business. Based on their review, the Independent Board Members concluded that Nuveen’s level of profitability for its advisory activities was reasonable in light of the services provided.
In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts paid to the Adviser by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) the Adviser and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds, if any. See Section E below for additional information on indirect benefits the Adviser may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangements of each Fund, the Independent Board Members determined that the advisory fees and expenses of the respective Fund were reasonable.
D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale
With respect to economies of scale, the Independent Board Members have recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base, although economies of scale are difficult to measure and predict with precision, particularly on a fund-by-fund basis. One method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Generally, management fees for funds in the Nuveen complex are comprised of a fund-level component and a complex-level component, subject to certain exceptions. Accordingly, the Independent Board Members reviewed and considered the applicable fund-level breakpoints in the advisory fee schedules that reduce advisory fees as asset levels increase. Further, the Independent Board Members noted that although closed-end funds may from time-to-time make addit ional share offerings, the growth of their assets will occur primarily through the appreciation of such funds’ investment portfolio.
In addition to fund-level advisory fee breakpoints, the Board also considered the Funds’ complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex are generally reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement seeks to provide the benefits of economies of scale to fund shareholders when total fund complex assets
116 Nuveen Investments
increase, even if assets of a particular fund are unchanged or have decreased. The approach reflects the notion that some of Nuveen’s costs are attributable to services provided to all its funds in the complex and therefore all funds benefit if these costs are spread over a larger asset base.
Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase.
E. Indirect Benefits
In evaluating fees, the Independent Board Members received and considered information regarding potential “fall out” or ancillary benefits the Adviser or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Independent Board Members considered any revenues received by affiliates of the Adviser for serving as agent at Nuveen’s trading desk and as co-manager in initial public offerings of new closed-end funds.
In addition to the above, the Independent Board Members considered whether the Adviser received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to the Adviser in managing the assets of the Funds and other clients. The Independent Board Members noted that the Adviser does not currently have any soft dollar arrangements; however, to the extent certain bona fide agency transactions that occur on markets that traditionally trade on a principal basis and riskless principal transactions are considered as generating “commissions,” the Adviser intends to comply with the applicable safe harbor provisions.
Based on their review, the Independent Board Members concluded that any indirect benefits received by the Adviser as a result of its relationship with the Funds were reasonable and within acceptable parameters.
F. Other Considerations
The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of the Advisory Agreements are fair and reasonable, that the Adviser’s fees are reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed.
Nuveen Investments 117
Reinvest Automatically
Easily and Conveniently
Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account.
Nuveen Closed-End Funds Dividend Reinvestment Plan
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional Fund shares.
By choosing to reinvest, you’ll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market.
Easy and convenient
To make recordkeeping easy and convenient, each month you’ll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own.
How shares are purchased
The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund’s shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares’ net asset value or 95% of the shares’ market value on the last business day immediately prior to the purchase date. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price
118 Nuveen Investments
per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions.
Flexible
You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change.
You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time.
Call today to start reinvesting dividends and/or distributions
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787.
Nuveen Investments 119
Glossary of Terms
Used in this Report
| ■ | Auction Rate Bond: An auction rate bond is a security whose interest payments are adjusted periodically through an auction process, which process typically also serves as a means for buying and selling the bond. Auctions that fail to attract enough buyers for all the shares offered for sale are deemed to have “failed,” with current holders receiving a formula-based interest rate until the next scheduled auction. |
| | |
| ■ | Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered. |
| | |
| ■ | Average Effective Maturity: The market-value-weighted average of the effective maturity dates of the individual securities including cash. In the case of a bond that has been advance-refunded to a call date, the effective maturity is the date on which the bond is scheduled to be redeemed using the proceeds of an escrow account. In most other cases the effective maturity is the stated maturity date of the security. |
| | |
| ■ | Inverse Floaters: Inverse floating rate securities, also known as inverse floaters, are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond’s par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an “inverse floater”) to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates’ holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond’s downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond’s value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis. |
120 Nuveen Investments
| ■ | Leverage-Adjusted Duration: Duration is a measure of the expected period over which a bond’s principal and interest will be paid, and consequently is a measure of the sensitivity of a bond’s or bond Fund’s value to changes when market interest rates change. Generally, the longer a bond’s or Fund’s duration, the more the price of the bond or Fund will change as interest rates change. Leverage-adjusted duration takes into account the leveraging process for a Fund and therefore is longer than the duration of the Fund’s portfolio of bonds. |
| | |
| ■ | Market Yield (also known as Dividend Yield or Current Yield): An investment’s current annualized dividend divided by its current market price. |
| | |
| ■ | Net Asset Value (NAV): A Fund’s NAV per common share is calculated by subtracting the liabilities of the Fund (including any Preferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of common shares outstanding. Fund NAVs are calculated at the end of each business day. |
| | |
| ■ | Pre-refunding: Pre-refunding, also known as advanced refundings or refinancings, is a procedure used by state and local governments to refinance municipal bonds to lower interest expenses. The issuer sells new bonds with a lower yield and uses the proceeds to buy U.S. Treasury securities, the interest from which is used to make payments on the higher-yielding bonds. Because of this collateral, pre-refunding generally raises a bond’s credit rating and thus its value. |
| | |
| ■ | 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. |
| | |
| ■ | Zero Coupon Bond: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Tax-exempt income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically. |
Nuveen Investments 121
Notes
122 Nuveen Investments
Notes
Nuveen Investments 123
Notes
124 Nuveen Investments
Other Useful Information
Board of
Directors/Trustees
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
Fund Manager
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
Custodian
State Street Bank & Trust
Company
Boston, MA
Transfer Agent and
Shareholder Services
State Street Bank & Trust
Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
Independent Registered
Public Accounting Firm
Ernst & Young LLP
Chicago, IL
Quarterly Portfolio of Investments and Proxy Voting Information
You may obtain (i) each Fund’s quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities and Exchange Commission (SEC). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC’s Public References Section at 100 F Street NE, Washington, D.C. 20549.
CEO Certification Disclosure
Each Fund’s Chief Executive Officer (CEO) has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.
Common and Preferred Share Information
Each Fund intends to repurchase and/or redeem shares of its own common and/or auction rate preferred stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report, the Funds repurchased and/or redeemed shares of their common and/or auction rate preferred stock as shown in the accompanying table.
| Fund | Common Shares Repurchased | | Auction Rate Preferred Shares Redeemed |
| NQI | — | | 266 |
| NIO | 2,900 | | 426 |
| NIF | — | | — |
| NPX | — | | — |
| NVG | — | | — |
| NEA | — | | 3,255 |
Any future repurchases and/or redemptions will be reported to shareholders in the next annual or semi-annual report.
Nuveen Investments 125
Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. We market our growing range of specialized investment solutions under the high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, Nuveen Investments managed more than $160 billion of assets on September 30, 2010.
Find out how we can help you.
To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/cef
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Distributed by
Nuveen Investments, LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/CEF/Info/Shareholder. (To view the code, click on Fund Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser ("SCI"). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and actively supervised the CFO's preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI's financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committe e of the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen Insured Municipal Opportunity Fund, Inc.
The following tables show the amount of fees that Ernst & Young LLP, the Fund's auditor, billed to the Fund during the Fund's last two full fiscal years. For engagements with Ernst & Young LLP the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are pr ovided; (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 ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to Nuveen Fund Advisors, Inc. (formerly Nuveen Asset Management) (the "Adviser"), and any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for engagements directly related to the Fund's operations and financial reporting, during the Fund's last two full fiscal years.
The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the Fund's audit is completed.
The following table shows the amount of fees that Ernst & Young LLP billed during the Fund's last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund's operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested and received information from Ernst & Young LLP about any non-audit services that Ernst & Young LLP rendered during the Fund's last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Ernst & Young LLP's independence.
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.
ITEM 6. SCHEDULE OF INVESTMENTS.
a) See Portfolio of Investments in Item 1.
b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
The registrant invests its assets primarily in municipal bonds and cash management securities. The registrant also may invest in shares of investment companies that in turn invest primarily in municipal bonds.
The registrant has adopted the proxy voting policies and procedures of Nuveen Asset Management to govern the voting of proxies with respect to that fund. In the event that a municipal issuer were to issue a proxy or that the registrant were to receive a proxy issued by the issuer of a cash management security or municipal bond-oriented investment company, Nuveen Asset Management (as defined below) has approved and adopted the proxy voting policies of an independent third party, Institutional Shareholder Services, Inc. (“ISS”) to determine how the proxy should be voted. It has also engaged ISS to apprise Nuveen Asset Management of shareholder meeting dates, to provide research on proxy proposals and voting recommendations and to c ast the actual proxy votes. In addition, ISS also serves as Nuveen Asset Management’s proxy voting record keeper. Nuveen Asset Management’s Investment Policy Committee (“IPC”), comprised of the firm’s most senior investment professionals, is charged with the overall oversight of proxy voting policies and procedures, including the activities of the firm’s Proxy Voting Committee (“PVC”), which is responsible for providing an administrative framework to facilitate and monitor proxy voting, including oversight of the firm’s relationship with ISS.
From time to time, a portfolio manager may initiate action to override an ISS recommendation for a particular vote. Such override will be reviewed by Nuveen Asset Management’s legal department for material conflicts and if it is determined that no material conflicts exist, the approval of one investment professional on the IPC or Nuveen Asset Management’s Head of Equity Research shall authorize the override.
Nuveen Asset Management recognizes that there are circumstances where it may have a perceived or real conflict of interest in voting proxies and will vote proxies in the best interest of its clients regardless of any such real or perceived conflicts of interest. By adopting ISS policies, Nuveen Asset Management believes the risk related to conflicts will be minimized. To further minimize this risk, the IPC will review ISS’ conflict avoidance policy at least annually to ensure that it adequately addresses both the actual and perceived conflicts of interest the proxy voting service may face.
In the event ISS faces a material conflict of interest with respect to a specific vote, the PVC shall direct ISS how to vote after receiving voting direction from the Head of Research, who will seek voting direction from the appropriate investment personnel, after confirming that Nuveen Asset Management faces no material conflicts of its own with respect to the specific proxy vote. If the PVC concludes that a material conflict does exist, it will recommend to the IPC a course of action designed to address the conflict. Such actions could include, but are not limited to: (1) obtaining instructions from the affected client(s) on how to vote the proxy; (2) disclosing the conflict to the affected client(s) and seeking their consent to permit Nuveen Asset M anagement to vote the proxy; (3) voting in proportion to the other shareholders; (4) recusing an IPC member from all discussion or consideration of the matter, if the material conflict is due to such person’s actual or potential conflict of interest; or (5) following the recommendation of a different independent third party.
In addition to all of the above-mentioned and other conflicts, members of the IPC and the PVC must notify Nuveen Asset Management’s Chief Compliance Officer of any direct, indirect or perceived improper influence exerted by any employee, officer or director within Nuveen Asset Management, its affiliates or the Fund complex with regard to how Nuveen Asset Management should vote proxies. The Chief Compliance Officer will investigate the allegations and will report the findings to Nuveen Asset Management’s President and the General Counsel. If it is determined that improper influence was attempted, appropriate action shall be taken. Such appropriate action may include disciplinary action, notification of the appropriate senior managers, or notification o f the appropriate regulatory authorities. In all cases, the IPC shall not consider any improper influence in determining how to vote proxies, and will vote in the best interests of clients.
On rare occasions the registrant may acquire, directly or through a special purpose vehicle, equity securities of a municipal bond issuer whose bonds the registrant already owns when such bonds have deteriorated or are expected shortly to deteriorate significantly in credit quality. The purpose of acquiring such equity securities generally will be to acquire control of the municipal bond issuer and to seek to prevent the credit deterioration or facilitate the liquidation or other workout of the distressed issuer’s credit problem. In the course of exercising control of a distressed municipal issuer, Nuveen Asset Management may pursue the registrant’s interests in a variety of ways, which may entail negotiating and executing consen ts, agreements and other arrangements, and otherwise influencing the management of the issuer. Neither the registrant nor Nuveen Asset Management considers such control activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but nevertheless provides reports to the registrant’s Board on any such control activities on a quarterly basis.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Nuveen Fund Advisors, Inc. is the registrant's investment adviser (also referred to as the "Adviser") . The Adviser is responsible for the selection and on-going monitoring of the Fund's investment portfolio, managing the Fund's business affairs and providing certain clerical, bookkeeping and administrative services. The Adviser has engaged Nuveen Asset Management, LLC (“Nuveen Asset Management” or “Sub-Adviser”) as Sub-Adviser to provide discretionary investment advisory services. The following section provides information on the portfolio manager at the Sub-Adviser:
The following individual has primary responsibility for the day-to-day implementation of the registrant’s investment strategies:
Paul Brennan, CFA, CPA, manages several Nuveen municipal national and state mutual funds and closed-end bond funds. Paul began his career in the investment business in 1991, as a municipal credit analyst for Flagship Financial, before becoming a portfolio manager in 1994. He joined Nuveen Investments in 1997, when Nuveen acquired Flagship Financial that year. He earned his B.S. in Accountancy and Finance from Wright State University. He is a CPA, has earned the Chartered Financial Analyst (CFA) designation, and currently sits on the Nuveen Asset Management Investment Management Committee.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
* The registrant's repurchase program, which authorized the repurchase of 8,115,000 shares, was announced October 3, 2009. Any repurchases made by the registrant pursuant to the program were made through open-market transactions.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board implemented after the registrant last provided disclosure in response to this item.
ITEM 11. CONTROLS AND PROCEDURES.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated.
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.
Kevin J. McCarthy
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.
Gifford R. Zimmerman
Stephen D. Foy
