UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21215
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Nuveen Insured Florida Tax-Free Advantage Municipal Fund
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: June 30
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Date of reporting period: December 31
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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
Municipal Closed-End
Exchange-Traded
Funds
SEMIANNUAL REPORT December 31, 2003
Nuveen Florida Investment Quality Municipal Fund
NQF
Nuveen Florida Quality Income Municipal Fund
NUF
Nuveen Insured Florida Premium Income Municipal Fund
NFL
Nuveen Insured Florida Tax-Free Advantage
Municipal Fund
NWF
Photo of: Man holding up small boy.
Photo of: 2 women with 2 girls looking at seashells.
DEPENDABLE,
TAX-FREE INCOME
BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
FASTER INFORMATION
RECEIVE YOUR
NUVEEN FUND REPORT
ELECTRONICALLY
By registering for electronic delivery, you will receive an e-mail as soon as
your Nuveen Fund information is available. Click on the link and you will be
taken directly to the report. Your Fund report can be viewed and saved on your
computer. Your report will arrive faster via e-mail than by traditional mail.
Registering is easy and only takes a few minutes (see instructions at right).
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SOME COMMON CONCERNS:
WILL MY E-MAIL ADDRESS BE DISTRIBUTED TO OTHER COMPANIES?
No, your e-mail address is strictly confidential and will not be used for
anything other than notification of shareholder information.
WHAT IF I CHANGE MY MIND AND WANT TO RECEIVE INVESTOR MATERIALS THROUGH REGULAR
MAIL DELIVERY AGAIN?
If you decide you do not like receiving your reports electronically, it's a
simple process to go back to regular mail delivery.
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IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.INVESTORDELIVERY.COM and follow the simple instructions, using
the address sheet that accompanied this report as a guide.
2 You'll be taken to a page with several options. Select the NEW
ENROLLMENT-CREATE screen and follow the simple instructions.
3 Click Submit. Confirm the information you just entered is correct, then
click Submit again.
4 You should get a confirmation e-mail within 24 hours. If you do not, go
back through these steps to make sure all the information is correct.
5 Use this same process if you need to change your registration information
or cancel internet viewing.
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME DIRECTLY TO YOU FROM NUVEEN,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.NUVEEN.COM
2 Select ACCESS YOUR ACCOUNT. Select the E-REPORT ENROLLMENT section. Click
on Enrollment Today.
3 You'll be taken to a screen that asks for your Social Security number and
e-mail address. Fill in this information, then click Enroll.
4 You should get a confirmation e-mail within 24 hours. If you do not, go
back through these steps to make sure all the information is correct.
5 Use this same process if you need to change your registration information
or cancel internet viewing.
Logo: NUVEEN Investments
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: "WE THINK THAT MUNICIPAL BOND INVESTMENTS LIKE YOUR NUVEEN FUND
CAN BE IMPORTANT BUILDING BLOCKS IN A PORTFOLIO DESIGNED TO PERFORM WELL THROUGH
A VARIETY OF MARKET CONDITIONS."
Dear
SHAREHOLDER
I am very pleased to report that for the period ended December 31, 2003, your
Nuveen Fund continued to provide you with attractive monthly tax-free income.
Your Fund is managed with a value investing strategy that puts an emphasis on
finding securities that we think are undervalued or underrated. We believe there
are always some municipal bonds that the market is not properly valuing, and
that by using a consistent, research-oriented management approach we have the
opportunity to find them for your Fund.
In the current environment, many have begun to wonder whether interest rates
will soon start to rise, and whether that possibility should cause them to
adjust their holdings of fixed-income investments. We believe that by
constructing a carefully balanced portfolio with the help of a trusted
investment professional you may be able to reduce your overall investment risk
and give yourself a better chance to meet your financial goals. We think that
municipal bond investments like your Nuveen Fund can be important building
blocks in a portfolio designed to perform well through a variety of market
conditions.
Since 1898, Nuveen Investments has offered financial products and solutions that
incorporate careful research, diversification, and the application of
conservative risk-management principles. We are grateful that you have chosen us
as a partner as you pursue your financial goals. We look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
February 17, 2004
1
Nuveen Florida Municipal Closed-End Exchange-Traded Funds
(NQF, NUF, NFL, NWF)
Portfolio Managers'
COMMENTS
Portfolio managers Dan Solender and Tom O'Shaughnessy discuss national and state
economic and market conditions, key investment strategies, and the recent
performance of these four Nuveen Florida Funds. With eleven years of investment
experience, including seven at Nuveen, Dan assumed portfolio management
responsibility for NQF and NUF in November 2003. Tom, a twenty-year veteran of
Nuveen, managed NFL from 1992 to 1995 and again since 1998, adding NWF at its
inception in 2002.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE
12-MONTHS ENDED DECEMBER 31, 2003?
Over the past 12 months, the two greatest influences on the general economy and
the municipal market continued to be historically low interest rates and the
overall pace of economic improvement. Since its last credit easing in June 2003,
the Federal Reserve has maintained the fed funds rate at 1.0%, the lowest level
since 1958. This accommodative monetary policy, coupled with Washington's tax
relief measures and increased spending for defense and national security, helped
to fuel a jump of 8.2% (annualized) in the third-quarter gross domestic product
(GDP), up from 3.3% in the second quarter. Throughout 2003, inflation remained
under control, with the 1.1% annual change in the core rate representing the
slowest pace in more than 40 years. The recovering economy also generated some
improvement in the labor markets, although progress remained halting, making
2003 only the second non-recession year on record in which the economy posted a
net loss of jobs.
In combination, the pace of recovery over the majority of this reporting period,
low interest rates, and lack of inflationary pressures helped many municipal
bonds perform well. During the summer of 2003, however, stronger-than-expected
economic data precipitated a spike in bond yields and a corresponding drop in
bond prices that impacted results across all fixed-income markets. Despite the
increased volatility in June and July, the municipal market enjoyed generally
solid performance during the 12-month period ended December 31, 2003.
In 2003, municipal supply nationally broke the record set just last year, with
$382.7 billion in new bonds, up 7% over 2002. However, the issuance of new paper
slowed somewhat in the last half of the year, with national volume for
July-December 2003 down $13.7 billion, or 7%, from the preceding six months.
HOW WERE ECONOMIC AND MARKET CONDITIONS IN FLORIDA?
While Florida's annual growth rate remained strong at 3.1%, the major drivers of
the state's economy have transitioned away from population-based industries
(homes, healthcare, retail) to macro-driven enterprises (tourism, finance,
business services). Florida continues to be an important tourist destination
with an attractive, low-cost business environment, ranking seventh on the Tax
Foundation's list of states with business-friendly tax systems. However,
Florida's geography, including its environmentally sensitive lands and its
location away from major industrial centers, adds to development and maintenance
costs. In December 2003, unemployment in Florida fell to 4.7%, its lowest level
in 29 months, down from 5.3% a year earlier and well below the current national
average of 5.7%. Compared with trends in most other states, Florida's revenue
base, dominated by sales tax, remained stable. The state's $21.2 billion fiscal
2004 budget was
2
balanced using $708 million in one-time revenues, a relatively modest amount. In
2003, Florida issued $21.3 billion in new municipal bonds, up 14% over 2002. The
state's debt level has continued to rise, with additional borrowing necessitated
by the demands of a rapidly growing population. Recent legislation mandated
increased spending for education, resulting in Florida's authorization of $2.4
billion in new debt to fund this program. Although the state's debt burden is
above the national average, Floridastrong economy, fiscal management, and high
liquidity levels provide a solid base of financial support. As of December 31,
2003, Florida's general obligation debt was rated Aa2/AA+, with stable outlooks,
by Moody's and Standard & Poor's, respectively.
HOW DID THESE NUVEEN FUNDS PERFORM OVER THIS REPORTING PERIOD?
Individual results for these Funds, as well as for relevant benchmarks, are
presented in the accompanying table.
TOTAL RETURN LEHMAN LIPPER
MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2
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1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
12/31/03 EQUIVALENT3 12/31/03 12/31/03 12/31/03
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NQF 6.11% 8.49% 6.70% 5.31% 7.26%
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NUF 6.15% 8.54% 6.99% 5.31% 7.26%
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NFL 5.60% 7.78% 7.16% 5.65% 7.26%
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NWF 5.59% 7.76% 6.57% 5.65% 7.26%
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Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the 12 months ended December 31, 2003, the uninsured NQF and NUF
outperformed the unleveraged Lehman Brothers Municipal Bond Index, while the
insured NFL and NWF performed better than the unleveraged Lehman Insured
Municipal Bond Index. NFL also performed in line with the Lipper Florida peer
group average, while NQF, NUF, and NWF trailed this measure. The use of leverage
was one of the primary factors influencing the performances of these Funds
relative to the Lehman index over the past 12 months. While leveraging can add
volatility, this strategy can also provide opportunities for additional income
for common shareholders, especially during periods of low short-term interest
rates. For municipal bond funds, as with any fixed-income investment, income is
an important component of total return.
In addition to leverage, factors such as call exposure and the price movement of
specific sectors and holdings also had an impact on the Funds' relative
performances during this period. For example, NQF was the only one of these
Funds to hold bonds (1.20% of the Fund's portfolio) backed by revenues from the
1998 master tobacco settlement agreement. The sector as a whole underperformed
the broad municipal market for the year, impacting the 12-month return for NQF.
The performances of this Fund and NUF were also affected by bond calls on some
of their holdings in the single family housing sector that had been trading at
premiums before being called.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With short-term interest rates remaining at historically low levels, the
dividend-payment capabilities of these Funds benefited from their use of
leverage. The extent of this benefit is tied in part to the short-term rates the
Funds pay their MuniPreferred(R) shareholders. Low short-term rates can enable
the Funds to reduce the amount of income paid to MuniPreferred shareholders,
which can potentially leave more earnings to support common share dividends.
During the 12 months ended December 2003, continued low short-term rates enabled
us to implement three dividend increases in NQF and two in NFL. Leverage also
helped to support the dividend of NUF, which--as of December 31, 2003--had
offered shareholders 43 consecutive months of steady or increasing dividends,
while NWF, which was introduced in November 2002, had provided 12 consecutive
months of stable, attractive dividends.
1 The total annual returns on common share net asset value (NAV) for NQF and NUF
are compared with the total annual return of the Lehman Brothers Municipal
Bond Index, an unleveraged, unmanaged national index comprising a broad range
of investment-grade municipal bonds. The total annual returns on NAV for NFL
and NWF are compared with the total annual return of the Lehman Insured
Municipal Bond Index, an unleveraged, unmanaged national index comprising a
broad range of insured municipal bonds. Results for the Lehman indexes do not
reflect any expenses.
2 The total returns of these Nuveen Florida Funds are compared with the average
annualized return of the 17 funds in the Lipper Florida Municipal Debt Funds
category. Fund and Lipper returns assume reinvestment of dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%.
3
Each Fund seeks to pay a stable dividend at a rate that reflects the Fund's past
results and projected future performance. The 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 the 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 net asset value (NAV).
Conversely, if the 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 December 31, 2003, NQF, NUF and NFL had
positive UNII, while NWF had negative UNII.
The share prices of these Funds experienced some volatility during the 12 months
ended December 31, 2003, much like the fixed-income market generally. Despite
this volatility, the share prices of NQF, NFL and NWF ended the period higher
than they had been at the beginning, while the price of NUF ended the period
where it began. As of December 31, 2003, NQF, NUF, and NWF continued to trade at
premiums to their common share NAVs, while NFL had moved to trading at a premium
from a very slight discount 12 months earlier (see charts on individual
Performance Overview pages).
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE 12-MONTHS ENDED
DECEMBER 31, 2003?
For this 12-month period, we continued to place strong emphasis on keeping the
Funds fully invested and well diversified, improving call protection, and
enhancing dividend-payment capabilities. One of our key strategies continued to
be management of the Funds' durations4 as a way of mitigating interest rate risk
and producing potentially more consistent returns over time. Interest rate risk
is the risk that the value of a Fund's portfolio will decline when market
interest rates rise (since bond prices move in the opposite direction of
interest rates). The longer the duration of a Fund's portfolio, the greater its
interest rate risk. Over the past 12 months, we worked to moderate risk by
shortening the durations of NQF, NUF, and NFL. However, we kept the duration of
NWF longer to provide additional support for this newer Fund's income stream in
the current market environment.
Although the heavy volume of municipal issuance during 2003 provided selected
opportunities to make trades that would benefit the Funds, in recent months we
have seen supply soften. During July-December 2003, issuance in Florida declined
22% from the levels of the previous six months. The majority of our trading
activity over the past year focused on value opportunities in the long
intermediate part of the yield curve (i.e., bonds that mature in 15 to 25
years). In many cases, bonds in this part of the curve offered yields similar to
those of longer-term bonds but had less inherent interest rate risk. In NFL and
NWF, our allocations of water and sewer and limited tax obligation bonds rose
over the year, reflecting the increased issuance of insured bonds in these
sectors of the Florida market.
In the insured Funds, we also took advantage of strategies designed to enhance
tax efficiency and reduce taxable distributions to shareholders. As appropriate
opportunities arose, we worked to offset the capital gains that had accumulated
in NFL. We also began to gradually cut our holdings of AMT (alternative minimum
tax) bonds in this Fund, following a consistent widening of spreads relative to
Treasuries over the past year. The rising number of investors who are subject to
this federal tax was another factor in our decision to reduce our position in
AMTs. NWF, which was introduced in November 2002, cannot invest in any AMT
bonds.
4 Duration is a measure of a fund's NAV volatility in reaction to interest rate
movements. Fund duration, also known as leverage-adjusted duration, takes into
account the leveraging process for a fund and therefore is generally longer
than the duration of the actual portfolio of individual bonds that make up the
fund. References to duration in this commentary are intended to indicate fund
duration unless otherwise noted.
4
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
DECEMBER 31, 2003?
We believe that, given the current geopolitical and economic climate,
maintaining strong credit quality remains a vital requirement. As of December
31, 2003, both NQF and NUF offered excellent credit quality, with allocations of
bonds rated AAA/U.S. guaranteed and AA of 71% and 72%, respectively. NFL
continued to be 100% invested in insured and/or U.S. guaranteed bonds, while
NWF, which is allowed to invest up to 20% in uninsured investment-grade quality
securities, held 85% of its portfolio in insured bonds as of December 31, 2003.
Looking at bond calls, these Funds generally offer good levels of call
protection over the next two years, with potential call exposure (as of December
31, 2003) ranging from zero in NWF to 11% in NFL during 2004 and 2005. In coming
months, the number of actual bond calls in all of these Funds will depend
largely on market interest rates.
In general, we believe that these Nuveen Funds can continue to serve as
attractive sources of tax-free income, while simultaneously offering the
potential for portfolio diversification. In our opinion, the Funds represent a
quality component of a well-balanced core investment portfolio that can continue
to benefit shareholders over time.
5
Nuveen Florida Investment Quality Municipal Fund
Performance
OVERVIEW As of December 31, 2003
NQF
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 57%
AA 14%
A 13%
BBB 5%
NR 11%
PORTFOLIO STATISTICS
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Share Price $16.60
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Common Share Net Asset Value $15.50
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Premium/(Discount) to NAV 7.10%
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Market Yield 6.11%
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Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.49%
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Net Assets Applicable to
Common Shares ($000) $256,009
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Average Effective Maturity (Years) 20.54
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Leverage-Adjusted Duration 9.76
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AVERAGE ANNUAL TOTAL RETURN (Inception 2/21/91)
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ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 12.01% 6.70%
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5-Year 5.59% 6.76%
- --------------------------------------------------
10-Year 6.80% 6.27%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
Tax Obligation/Limited 16%
- --------------------------------------------------
Healthcare 16%
- --------------------------------------------------
Transportation 14%
- --------------------------------------------------
U.S. Guaranteed 11%
- --------------------------------------------------
Utilities 11%
- --------------------------------------------------
Bar Chart:
2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.081
Feb 0.081
Mar 0.0825
Apr 0.0825
May 0.0825
Jun 0.0835
Jul 0.0835
Aug 0.0835
Sep 0.0835
Oct 0.0835
Nov 0.0835
Dec 0.0845
Line Chart:
SHARE PRICE PERFORMANCE
1/1/03 16.01
15.4
15.44
15.65
15.8
16.16
15.81
15.99
15.95
16.14
16.27
15.8
16.1
16.55
16.74
16.61
16.7
16.73
16.85
16.85
17.05
17.33
16.7
16.89
16.98
16.95
16.36
14.56
15.1
14.96
14.74
14.83
15.28
15.35
15.36
15.44
15.88
15.73
15.83
15.95
15.85
16.33
16.35
16.61
16.52
16.41
16.37
16.78
12/31/03 16.5
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%.
2 The Fund also paid shareholders a capital gains and net ordinary income
distribution in December 2003 of $0.1984 per share.
6
Nuveen Florida Quality Income Municipal Fund
Performance
OVERVIEW As of December 31, 2003
NUF
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 58%
AA 14%
A 14%
BBB 4%
NR 8%
BB or lower 2%
PORTFOLIO STATISTICS
- --------------------------------------------------
Share Price $16.20
- --------------------------------------------------
Common Share Net Asset Value $15.50
- --------------------------------------------------
Premium/(Discount) to NAV 4.52%
- --------------------------------------------------
Market Yield 6.15%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.54%
- --------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $221,054
- --------------------------------------------------
Average Effective Maturity (Years) 21.37
- --------------------------------------------------
Leverage-Adjusted Duration 9.71
- --------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 10/17/91)
- --------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 6.05% 6.99%
- --------------------------------------------------
5-Year 5.56% 6.11%
- --------------------------------------------------
10-Year 6.82% 6.10%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
Healthcare 22%
- --------------------------------------------------
Transportation 19%
- --------------------------------------------------
Tax Obligation/Limited 14%
- --------------------------------------------------
Housing/Multifamily 11%
- --------------------------------------------------
Utilities 11%
- --------------------------------------------------
Bar Chart:
2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.083
Feb 0.083
Mar 0.083
Apr 0.083
May 0.083
Jun 0.083
Jul 0.083
Aug 0.083
Sep 0.083
Oct 0.083
Nov 0.083
Dec 0.083
Line Chart:
SHARE PRICE PERFORMANCE
1/1/03 16.42
15.75
15.78
15.91
16.1
16.27
16.25
16.5
16.25
16.2
16.05
16.01
16.08
16.32
16.3
16.72
16.49
16.6
16.65
16.9
17.04
17.51
16.62
16.43
17.01
16.68
16.18
14.43
15.12
14.5
14.72
14.77
14.85
15.08
15.31
15.42
15.39
15.55
15.63
15.65
15.75
15.98
16.01
16.29
16.41
16.08
16.2
16.3
12/31/03 16.22
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%.
2 The Fund also paid shareholders a capital gains distribution in December 2003
of $0.1432 per share.
7
Nuveen Insured Florida Premium Income Municipal Fund
Performance
OVERVIEW As of December 31, 2003
NFL
Pie Chart:
CREDIT QUALITY
Insured 86%
Insured and U.S. Guaranteed 14%
PORTFOLIO STATISTICS
- --------------------------------------------------
Share Price $17.14
- --------------------------------------------------
Common Share Net Asset Value $16.38
- --------------------------------------------------
Premium/(Discount) to NAV 4.64%
- --------------------------------------------------
Market Yield 5.60%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.78%
- --------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $235,061
- --------------------------------------------------
Average Effective Maturity (Years) 17.99
- --------------------------------------------------
Leverage-Adjusted Duration 8.11
- --------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 12/17/92)
- --------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 12.19% 7.16%
- --------------------------------------------------
5-Year 7.71% 6.57%
- --------------------------------------------------
10-Year 8.23% 6.58%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
Tax Obligation/Limited 25%
- --------------------------------------------------
Transportation 18%
- --------------------------------------------------
Water and Sewer 16%
- --------------------------------------------------
U.S. Guaranteed 14%
- --------------------------------------------------
Housing/Multifamily 12%
- --------------------------------------------------
Bar Chart:
2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.0775
Feb 0.0775
Mar 0.079
Apr 0.079
May 0.079
Jun 0.079
Jul 0.079
Aug 0.079
Sep 0.079
Oct 0.079
Nov 0.079
Dec 0.08
Line Chart:
SHARE PRICE PERFORMANCE
1/1/03 16.23
16.12
15.95
16.07
16.55
16.74
16.7
16.92
17.05
16.88
16.88
16.52
16.43
16.6
16.9
16.64
16.9
16.87
16.76
16.95
17.24
17.4
17.4
17.35
17.3
17.12
16.5
14.95
15.65
15.73
15.3
15.19
15.35
15.36
15.85
15.82
16.19
16.01
16.08
16.51
16.61
16.85
16.7
16.81
16.66
17.03
17.12
17.19
12/31/03 16.83
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%.
2 The Fund also paid shareholders a capital gains and net ordinary income
distribution in December 2003 of $0.1020 per share.
8
Nuveen Insured Florida Tax-Free Advantage Municipal Fund
Performance
OVERVIEW As of December 31, 2003
NWF
Pie Chart:
CREDIT QUALITY
Insured 85%
AAA (uninsured) 2%
AA (uninsured) 2%
A (uninsured) 11%
PORTFOLIO STATISTICS
- --------------------------------------------------
Share Price $15.46
- --------------------------------------------------
Common Share Net Asset Value $14.54
- --------------------------------------------------
Premium/(Discount) to NAV 6.33%
- --------------------------------------------------
Market Yield 5.59%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.76%
- --------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $56,415
- --------------------------------------------------
Average Effective Maturity (Years) 23.17
- --------------------------------------------------
Leverage-Adjusted Duration 10.98
- --------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 11/21/02)
- --------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 7.98% 6.57%
- --------------------------------------------------
Since Inception 8.13% 6.97%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
Tax Obligation/Limited 37%
- --------------------------------------------------
Water and Sewer 25%
- --------------------------------------------------
Healthcare 12%
- --------------------------------------------------
Tax Obligation/General 12%
- --------------------------------------------------
Education and Civic Organizations 6%
- --------------------------------------------------
Bar Chart:
2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jan 0.072
Feb 0.072
Mar 0.072
Apr 0.072
May 0.072
Jun 0.072
Jul 0.072
Aug 0.072
Sep 0.072
Oct 0.072
Nov 0.072
Dec 0.072
Line Chart:
SHARE PRICE PERFORMANCE
1/1/03 15.01
15.01
15
15.06
15.24
15.05
15
14.75
15.05
15.05
15
15.23
15.13
15.15
15.44
15.59
15.34
15.45
15.75
15.62
15.85
15.9
15.81
15.77
16.29
16.5
15.79
15
15.56
15.2
14.77
15.11
15.02
15.22
15.19
15.49
15.24
14.95
15
14.94
15.08
15.22
15.21
15.15
15.21
15.37
15.38
15.6
12/31/03 15.46
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%.
9
Shareholder
MEETING REPORT
The Shareholder Meeting was held on November 17, 2003, in Chicago at Nuveen's
headquarters.
NQF NUF
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
====================================================================================================================================
William E. Bennett
For 15,102,874 -- 12,938,345 --
Withhold 200,558 -- 120,945 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 15,303,432 -- 13,059,290 --
====================================================================================================================================
Robert P. Bremner
For 15,111,957 -- 12,938,348 --
Withhold 191,475 -- 120,942 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 15,303,432 -- 13,059,290 --
====================================================================================================================================
Lawrence H. Brown
For 15,098,517 -- 12,934,640 --
Withhold 204,915 -- 124,650 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 15,303,432 -- 13,059,290 --
====================================================================================================================================
Jack B. Evans
For 15,111,268 -- 12,938,148 --
Withhold 192,164 -- 121,142 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 15,303,432 -- 13,059,290 --
====================================================================================================================================
Anne E. Impellizzeri
For 15,094,322 -- 12,930,901 --
Withhold 209,110 -- 128,389 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 15,303,432 -- 13,059,290 --
====================================================================================================================================
William L. Kissick
For 15,086,804 -- 12,931,028 --
Withhold 216,628 -- 128,262 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 15,303,432 -- 13,059,290 --
====================================================================================================================================
Thomas E. Leafstrand
For 15,097,876 -- 12,930,285 --
Withhold 205,556 -- 129,005 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 15,303,432 -- 13,059,290 --
====================================================================================================================================
Peter R. Sawers
For 15,089,222 -- 12,932,440 --
Withhold 214,210 -- 126,850 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 15,303,432 -- 13,059,290 --
====================================================================================================================================
10
NQF NUF
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS: (CONTINUED)
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
====================================================================================================================================
William J. Schneider
For -- 5,086 -- 4,362
Withhold -- 3 -- 16
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 5,089 -- 4,378
====================================================================================================================================
Timothy R. Schwertfeger
For -- 5,081 -- 4,362
Withhold -- 8 -- 16
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 5,089 -- 4,378
====================================================================================================================================
Judith M. Stockdale
For 15,107,678 -- 12,938,348 --
Withhold 195,754 -- 120,942 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 15,303,432 -- 13,059,290 --
====================================================================================================================================
Sheila W. Wellington
For 15,087,950 -- 12,913,625 --
Withhold 215,482 -- 145,665 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 15,303,432 -- 13,059,290
====================================================================================================================================
11
Shareholder
MEETING REPORT (continued)
NFL NWF
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
====================================================================================================================================
William E. Bennett
For 13,287,886 -- 3,842,125 --
Withhold 100,024 -- 20,942 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 13,387,910 -- 3,863,067 --
====================================================================================================================================
Robert P. Bremner
For 13,290,173 -- 3,842,475 --
Withhold 97,737 -- 20,592 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 13,387,910 -- 3,863,067 --
====================================================================================================================================
Lawrence H. Brown
For 13,279,401 -- 3,827,650 --
Withhold 108,509 -- 35,417 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 13,387,910 -- 3,863,067 --
====================================================================================================================================
Jack B. Evans
For 13,289,264 -- 3,842,125 --
Withhold 98,646 -- 20,942 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 13,387,910 -- 3,863,067 --
====================================================================================================================================
Anne E. Impellizzeri
For 13,275,279 -- 3,828,650 --
Withhold 112,631 -- 34,417 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 13,387,910 -- 3,863,067 --
====================================================================================================================================
William L. Kissick
For 13,259,545 -- 3,838,473 --
Withhold 128,365 -- 24,594 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 13,387,910 -- 3,863,067 --
====================================================================================================================================
Thomas E. Leafstrand
For 13,264,155 -- 3,828,648 --
Withhold 123,755 -- 34,419 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 13,387,910 -- 3,863,067 --
====================================================================================================================================
Peter R. Sawers
For 13,267,843 -- 3,828,648 --
Withhold 120,067 -- 34,419 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 13,387,910 -- 3,863,067 --
====================================================================================================================================
12
NFL NWF
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS: (CONTINUED)
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
====================================================================================================================================
William J. Schneider
For -- 4,270 -- 1,155
Withhold -- 3 -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 4,273 -- 1,157
====================================================================================================================================
Timothy R. Schwertfeger
For -- 4,270 -- 1,155
Withhold -- 3 -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 4,273 -- 1,157
====================================================================================================================================
Judith M. Stockdale
For 13,286,463 -- 3,832,302 --
Withhold 101,447 -- 30,765 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 13,387,910 -- 3,863,067 --
====================================================================================================================================
Sheila W. Wellington
For 13,251,836 -- 3,827,298 --
Withhold 136,074 -- 35,769 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 13,387,910 -- 3,863,067 --
====================================================================================================================================
13
Nuveen Florida Investment Quality Municipal Fund (NQF)
Portfolio of
INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.8%
$ 5,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 4,609,100
Asset-Backed Refunding Bonds, Series 2002, 5.500%, 5/15/39
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 23.0%
4,600 Highlands County Health Facilities Authority, Florida, Hospital 11/11 at 101.00 A 4,861,372
Revenue Bonds, Adventist Health System Sunbelt Obligated
Group, Series 2001A, 6.000%, 11/15/31
Hillsborough County Industrial Development Authority, Florida,
Hospital Revenue Bonds, Tampa General Hospital, Series 2003B:
1,000 5.250%, 10/01/28 10/13 at 100.00 Baa1 981,570
2,330 5.250%, 10/01/34 10/13 at 100.00 Baa1 2,268,441
2,345 Leesburg, Florida, Hospital Revenue Bonds, Leesburg Regional 7/12 at 100.00 A 2,386,600
Medical Center Project, Series 2002, 5.375%, 7/01/22
1,000 Miami Beach, Florida, Health Facilities Authority, Hospital 11/11 at 101.00 BB 1,013,700
Revenue Bonds, Mount Sinai Medical Center of Florida
Project, Series 2001A, 6.800%, 11/15/31
3,000 Miami-Dade County Health Facilities Authority, Florida, Hospital 8/11 at 101.00 AAA 3,105,510
Revenue Refunding Bonds, Miami Children's Hospital,
Series 2001A, 5.125%, 8/15/26 - AMBAC Insured
6,000 North Broward Hospital District, Florida, Improvement Revenue 1/11 at 101.00 A- 6,309,960
Bonds, Series 2001, 6.000%, 1/15/31
6,000 Orange County Health Facility Authority, Florida, Hospital 11/10 at 101.00 A 6,500,280
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2000, 6.500%, 11/15/30
3,695 Orange County Health Facility Authority, Florida, Hospital 12/12 at 100.00 A2 3,850,412
Revenue Bonds, Orlando Regional Healthcare System,
Series 2002, 5.750%, 12/01/27
Palm Beach County Health Facilities Authority, Florida, Hospital
Revenue Refunding Bonds, BRCH Corporation Obligated Group,
Series 2001:
2,500 5.500%, 12/01/21 12/11 at 101.00 A 2,604,450
2,340 5.625%, 12/01/31 12/11 at 101.00 A 2,399,225
10,000 Pinellas County Health Facilities Authority, Florida, Revenue 5/13 at 100.00 A1 10,186,200
Bonds, Baycare Health System, Series 2003, 5.500%, 11/15/33
4,250 St. Johns County Industrial Development Authority, Florida, 2/04 at 101.00 A- 4,276,945
Hospital Revenue Bonds, Flagler Hospital Project,
Series 1992, 6.000%, 8/01/22 (Pre-refunded to 2/02/04)
5,375 South Broward Hospital District, Florida, Hospital Revenue 5/12 at 101.00 Aa3 5,637,031
Bonds, Series 2002, 5.625%, 5/01/32
2,500 South Miami Health Facilities Authority, Florida, Hospital 2/13 at 100.00 AAA 2,616,600
Revenue Bonds, Baptist Health Systems of South Florida,
Series 2003, 5.250%, 11/15/33 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 13.5%
10,945 Broward County Housing Finance Authority, Florida, Multifamily 7/09 at 102.00 N/R 10,982,870
Housing Revenue Bonds, Pier Club Apartments Project,
Series 1999, 7.000%, 7/01/34
1,090 Broward County Housing Finance Authority, Florida, Multifamily 5/10 at 101.00 AAA 1,136,314
Housing Revenue Bonds, Emerald Palms Apartments Project,
Series 2001A, 5.600%, 7/01/21 (Alternative Minimum Tax)
1,430 Florida Housing Finance Agency, General Mortgage Revenue 6/04 at 101.00 AAA 1,460,230
Refunding Bonds, Series 1992A, 6.400%, 6/01/24
2,500 Florida Housing Finance Agency, Housing Revenue Bonds, 9/06 at 102.00 AAA 2,616,800
Mariner Club Apartments Project, Series 1996K-1,
6.375%, 9/01/36 (Alternative Minimum Tax) - AMBAC Insured
9,980 Florida Housing Finance Corporation, Revenue Bonds, 2/16 at 100.00 N/R 8,769,127
Pembroke Apartments, Series 2001B, 7.750%, 2/01/41
10,290 Florida Housing Finance Corporation, Revenue Bonds, 2/16 at 100.00 N/R 6,431,250
River Run Apartments, Series 2001, 7.750%, 2/01/41
3,050 Florida Housing Finance Corporation, Revenue Bonds, 1/12 at 100.00 AAA 3,164,161
Mission Bay Apartments, Series 2001N, 5.500%, 7/15/29
(Alternative Minimum Tax)
14
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.5%
$ 6,010 Florida Housing Finance Agency, Homeowner Mortgage 1/06 at 102.00 AA $ 6,254,307
Revenue Bonds, New Money and Refunding Issue,
Series 1995-2, 6.200%, 7/01/27 (Alternative Minimum Tax)
1,395 Florida Housing Finance Agency, Homeowner Mortgage 1/07 at 102.00 AA 1,467,414
Revenue Bonds, New Money and Refunding Issue,
Series 1996-2, 6.350%, 7/01/28 (Alternative Minimum Tax)
2,310 Florida Housing Finance Agency, Homeowner Mortgage 7/07 at 102.00 AAA 2,413,188
Revenue Bonds, Series 1997-2, 5.900%, 7/01/29
(Alternative Minimum Tax) - MBIA Insured
675 Manatee County Housing Finance Authority, Florida, 11/05 at 102.00 Aaa 704,437
Single Family Mortgage Revenue Bonds, Series 1994-3,
7.600%, 11/01/26 (Alternative Minimum Tax)
570 Manatee County Housing Finance Authority, Florida, Single 5/06 at 105.00 Aaa 610,658
Family Mortgage Revenue Bonds, Series 1996-1,
7.450%, 5/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 5.4%
13,000 Hillsborough County Industrial Development Authority, 4/10 at 101.00 N/R 13,949,910
Florida, Exempt Facilities Revenue Bonds, National Gypsum
Company Apollo Beach Project, Series 2000B, 7.125%, 4/01/30
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 10.4%
2,810 Broward County, Florida, General Obligation Bonds, No Opt. Call AA+ 2,810,000
Series 1986 Refunding, 12.500%, 1/01/04
9,230 Florida State Board of Education, Full Faith and Credit, 6/11 at 101.00 AAA 9,567,910
Public Education Capital Outlay Bonds, Series 2001C,
5.125%, 6/01/31 - FGIC Insured
3,750 Florida State Board of Education, Full Faith and Credit 6/07 at 101.00 AA+ 3,642,488
Public Education Capital Outlay Bonds, Series 1996B,
4.500%, 6/01/27
1,500 Florida State Board of Education, Full Faith and Credit 6/12 at 101.00 AAA 1,576,395
Public Education Capital Outlay Bonds, Series 2002F,
5.000%, 6/01/22 - MBIA Insured
8,000 Florida State Board of Education, Full Faith and Credit, 6/12 at 100.00 AA+ 8,982,800
Public Education Capital Outlay Refunding Bonds,
Series 2002D, 5.375%, 6/01/16
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 23.7%
Miami-Dade County, Florida, Beacon Tradeport Community
Development District, Special Assessment Bonds, Commercial
Project, Series 2002A:
2,375 5.250%, 5/01/16 - RAAI Insured 5/12 at 102.00 AA 2,588,418
1,700 5.625%, 5/01/32 - RAAI Insured 5/12 at 102.00 AA 1,829,166
Florida Intergovernmental Finance Commission, Capital Revenue
Bonds, Daytona Beach Community Redevelopment Agency, Series
2001C-1:
1,280 5.000%, 2/01/20 - AMBAC Insured 8/11 at 100.00 Aaa 1,346,778
5,000 5.125%, 2/01/31 - AMBAC Insured 8/11 at 100.00 Aaa 5,146,300
5,000 Florida Ports Financing Commission, Revenue Bonds, State 6/07 at 101.00 AAA 5,141,800
Transportation Trust Fund, Series 1996, 5.375%, 6/01/27
(Alternative Minimum Tax) - MBIA Insured
1,685 Florida Municipal Loan Council, Revenue Bonds, Series 2003A, 5/13 at 100.00 AAA 1,763,572
5.000%, 5/01/22 - MBIA Insured
5,000 Hernando County, Florida, Criminal Justice Complex Financing No Opt. Call AAA 6,808,850
Program, Series 1986, 7.650%, 7/01/16 - FGIC Insured
5,015 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/13 at 100.00 AAA 5,447,042
Bonds, Series 2003, 5.250%, 10/01/21 - Insured
Manchester Housing and Redevelopment Authority,
New Hampshire, Revenue Bonds, Series 2000B:
5,140 0.000%, 1/01/21 - ACA Insured 1/10 at 46.78 A 1,957,518
4,640 0.000%, 1/01/25 - ACA Insured 1/10 at 35.11 A 1,313,723
5,140 0.000%, 1/01/28 - ACA Insured 1/10 at 28.27 A 1,203,942
575 Osceola County Industrial Development Authority, Florida, 8/11 at 101.00 AAA 595,884
Industrial Development Revenue Bonds, P.M. Wells Charter
School Project, Series 2001A, 5.000%, 8/01/23 -
MBIA Insured
8,330 Palm Beach County School Board, Florida, Certificates of 8/12 at 100.00 AAA 8,565,572
Participation, Series 2002D, 5.000%, 8/01/28 - FSA Insured
2,750 Saint Johns County, Florida, Transportation Improvement 10/13 at 100.00 AAA 2,871,715
Revenue Bonds, Series 2003, 5.000%, 10/01/23 -
AMBAC Insured
15
Nuveen Florida Investment Quality Municipal Fund (NQF) (continued)
Portfolio of INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Tampa Sports Authority, Florida, Special Purpose Bonds, State
Sales Tax Payment, Tampa Bay Arena Project, Series 1995:
$ 1,250 5.750%, 10/01/20 - MBIA Insured No Opt. Call AAA $ 1,482,100
2,585 5.750%, 10/01/25 - MBIA Insured No Opt. Call AAA 3,016,204
8,605 Volusia County School Board, Florida, Sales Tax Revenue 10/12 at 100.00 AAA 9,759,533
Bonds, Series 2002, 5.375%, 10/01/15 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 20.3%
11,500 Broward County, Florida, Airport System Revenue Bonds, 10/11 at 101.00 AAA 11,894,450
Series 2001-J1, 5.250%, 10/01/26 (Alternative Minimum
Tax) - AMBAC Insured
3,500 Dade County, Florida, Aviation Revenue Bonds, 10/06 at 102.00 AAA 3,776,255
Series 1996A, 5.750%, 10/01/26 (Alternative Minimum
Tax) - MBIA Insured
12,000 Greater Orlando Aviation Authority, Florida, Airport 10/09 at 101.00 AAA 12,218,280
Facilities Revenue Bonds, Series 1999A, 5.125%, 10/01/28
(Alternative Minimum Tax) - FGIC Insured
4,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 4,150,760
Revenue Bonds, Series 2002B, 5.125%, 10/01/21
(Alternative Minimum Tax) - FSA Insured
2,590 Hillsborough County Aviation Authority, Florida, Tampa 10/06 at 102.00 AAA 2,866,923
International Airport Revenue Bonds, Series 1996A,
6.000%, 10/01/23 (Alternative Minimum Tax) -
FGIC Insured
3,500 Hillsborough County Aviation Authority, Florida, Tampa 10/06 at 102.00 AAA 3,857,490
International Airport Revenue Bonds, Series 1996B,
5.875%, 10/01/23 - FGIC Insured
1,750 Miami-Dade County Industrial Development Authority, 10/09 at 101.00 AAA 1,964,953
Florida, Industrial Development Revenue Bonds,
Airis Miami II LLC - Miami International Airport Project,
Series 1999, 6.000%, 10/15/25 (Alternative Minimum Tax) -
AMBAC Insured
5,390 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/12 at 100.00 AAA 6,019,067
Miami International Airport, Series 2002,
5.750%, 10/01/18 (Alternative Minimum Tax) -
FGIC Insured
5,000 Orlando-Orange County Expressway Authority, Florida, 7/13 at 100.00 AAA 5,135,100
Expressway Revenue Bonds, Series 2003B,
5.000%, 7/01/35 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 16.7%
2,395 Dade County, Florida, Special Obligation Bonds, Courthouse 4/04 at 102.00 A3*** 2,474,131
Center Project, Series 1994, 6.300%, 4/01/14 (Pre-
refunded to 4/01/04)
7,225 Dade County, Florida, Special Obligation and Refunding 10/08 at 48.84 AAA 3,133,266
Bonds, Series 1996B, 0.000%, 10/01/20 (Pre-refunded
to 10/01/08) - AMBAC Insured
20,000 Escambia County, Florida, Health Facilities Authority, 11/09 at 101.00 AAA 23,720,000
Revenue Bonds, Ascension Health Credit Group,
Series 1999A2, 6.000%, 11/15/31 (Pre-refunded
to 11/15/09)
6,955 Florida State Board of Education, Full Faith and Credit 6/05 at 101.00 AAA 7,488,866
Public Education Capital Outlay Bonds, Series 1993F,
6.000%, 6/01/20 (Pre-refunded to 6/01/05)
1,400 Pembroke Pines, Florida, Capital Improvement Revenue 10/04 at 102.00 AAA 1,479,772
Bonds, Series 1995, 6.000%, 10/01/25 (Pre-refunded to
10/01/04) - AMBAC Insured
3,570 Seminole County, Florida, Water and Sewer Revenue No Opt. Call AAA 4,372,179
Refunding and Improvement Bonds, Series 1992,
6.000%, 10/01/19 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 16.0%
Hillsborough County Industrial Development Authority, Florida,
Pollution Control Revenue Bonds, Tampa Electric Company Project,
Series 2002:
4,330 5.100%, 10/01/13 10/12 at 100.00 Baa1 4,367,974
5,000 5.500%, 10/01/23 10/12 at 100.00 Baa1 5,025,050
1,050 Jacksonville Beach, Florida, Utility Revenue Refunding 10/10 at 100.00 Aaa 1,124,855
Bonds, Series 2002, 5.000%, 4/01/17 - AMBAC Insured
4,250 Lakeland, Florida, Energy System Refunding Revenue No Opt. Call AAA 5,091,118
Bonds, Series 1999C, 6.050%, 10/01/11 - FSA Insured
16
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 7,345 Orlando Utilities Commission, Florida, Water and Electric 10/11 at 101.00 Aa1 $ 8,043,803
Revenue Refunding Bonds, Series 2001, 5.250%, 10/01/18
5,000 Orlando Utilities Commission, Florida, Water and Electric 10/12 at 100.00 Aa1 5,486,300
Revenue Refunding Bonds, Series 2002C, 5.250%, 10/01/18
5,000 Orlando Utilities Commission, Florida, Water and Electric No Opt. Call Aa1 5,935,000
Revenue Refunding Bonds, Series 1992, 6.000%, 10/01/10
5,550 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 5,854,418
Series 2002II, 5.125%, 7/01/26 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.2%
3,310 Cocoa, Florida, Water and Sewer Revenue Refunding Bonds, No Opt. Call AAA 3,798,821
Series 2003, 5.500%, 10/01/23 - AMBAC Insured
1,000 Jacksonville, Florida, Water and Sewer Revenue Bonds, 8/05 at 102.00 AAA 1,084,220
United Water Florida Project, Series 1995,
6.350%, 8/01/25 (Alternative Minimum Tax) -
AMBAC Insured
2,000 Marco Island, Florida, Water Utility System Revenue Bonds, 10/13 at 100.00 AAA 2,055,020
Series 2003, 5.000%, 10/01/33 - MBIA Insured
8,300 Miami-Dade County, Florida, Water and Sewer System 10/09 at 101.00 AAA 8,511,069
Revenue Bonds, Series 1999A, 5.000%, 10/01/29 -
FGIC Insured
1,175 Naples, Florida, Water and Sewer Revenue Bonds, 9/12 at 100.00 Aa2 1,307,117
Series 2002, 5.000%, 9/01/14
5,000 Palm Coast, Florida, Water Utility System Revenue Bonds, 10/13 at 100.00 AAA 5,163,300
Series 2003, 5.000%, 10/01/27 - MBIA Insured
2,060 Polk County, Florida, Utility System Revenue Bonds, 10/13 at 100.00 Aaa 2,225,459
Series 2003, 5.250%, 10/01/22 - FGIC Insured
1,680 Seminole County, Florida, Water and Sewer Revenue No Opt. Call AAA 2,043,838
Refunding and Improvement Bonds, Series 1992,
6.000%, 10/01/19 - MBIA Insured
5,000 Sunrise, Florida, Utility System Revenue Refunding Bonds, 10/18 at 100.00 AAA 5,211,600
Series 1998, 5.000%, 10/01/28 - AMBAC Insured
Winter Springs, Florida, Water and Sewer Revenue Refunding
Bonds, Series 2001:
700 5.250%, 4/01/16 - MBIA Insured 4/11 at 101.00 AAA 773,066
1,585 5.000%, 4/01/20 - MBIA Insured 4/11 at 101.00 AAA 1,674,232
- ------------------------------------------------------------------------------------------------------------------------------------
$ 376,650 Total Long-Term Investments (cost $358,040,875) - 148.5% 380,313,524
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.3%
700 Palm Beach County Health Facilities Authority, Florida, VMIG-1 700,000
Revenue Bonds, Bethesda Health Project, Variable Rate
Demand Bonds, Series 2001, 1.310%, 12/01/31+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 700 Total Short-Term Investments (cost $700,000) 700,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $358,740,875) - 148.8% 381,013,524
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 6,995,666
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.6)% (132,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 256,009,190
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
17
Nuveen Florida Quality Income Municipal Fund (NUF)
Portfolio of
INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 33.4%
$ 1,500 Citrus County Hospital Board, Florida, Revenue Bonds, Citrus 8/13 at 100.00 Baa3 $ 1,544,400
Memorial Hospital, Series 2002 Refunding, 6.375%, 8/15/32
2,600 Highlands County Health Facilities Authority, Florida, Hospital 11/11 at 101.00 A 2,747,732
Revenue Bonds, Adventist Health System Sunbelt Obligated
Group, Series 2001A, 6.000%, 11/15/31
1,000 Highlands County Health Facilities Authority, Florida, 11/12 at 100.00 A 1,004,510
Hospital Revenue Bonds, Adventist Health System
Sunbelt Obligated Group, Series 2002B,
5.250%, 11/15/23
Hillsborough County Industrial Development Authority, Florida,
Hospital Revenue Bonds, Tampa General Hospital, Series 2003B:
500 5.250%, 10/01/28 10/13 at 100.00 Baa1 490,785
1,590 5.250%, 10/01/34 10/13 at 100.00 Baa1 1,547,992
8,500 Jacksonville Economic Development Commission, Florida, 11/11 at 101.00 AA 8,920,240
Healthcare Facilities Revenue Bonds, Mayo Clinic,
Series 2001A, 5.500%, 11/15/36
10,395 Jacksonville, Florida, Hospital Revenue Bonds, University 2/04 at 100.00 AAA 10,499,990
Medical Center, Inc. Project, Series 1992,
6.600%, 2/01/21 - CONNIE LEE/AMBAC Insured
5,000 Jacksonville Health Facilities Authority, Florida, Revenue 11/12 at 101.00 AA 5,149,600
Bonds, Ascension Health, Series 2002A, 5.250%, 11/15/32
1,500 Leesburg, Florida, Hospital Revenue Bonds, Leesburg Regional 7/12 at 100.00 A 1,524,930
Medical Center Project, Series 2002, 5.500%, 7/01/32
4,500 Miami Beach, Florida, Health Facilities Authority, Hospital 11/11 at 101.00 BB 4,584,375
Revenue Bonds, Mount Sinai Medical Center of Florida
Project, Series 2001A, 6.700%, 11/15/19
9,000 North Broward Hospital District, Florida, Improvement 1/11 at 101.00 A- 9,464,940
Revenue Bonds, Series 2001, 6.000%, 1/15/31
6,000 Orange County Health Facility Authority, Florida, Hospital 12/12 at 100.00 A2 6,187,440
Revenue Bonds, Orlando Regional Healthcare System,
Series 2002, 5.750%, 12/01/32
5,000 Orange County Health Facility Authority, Florida, Hospital 11/12 at 101.00 A 5,169,300
Revenue Bonds, Adventist Health System/Sunbelt
Obligated Group, Series 2002, 5.250%, 11/15/18
10,000 Pinellas County Health Facilities Authority, Florida, Revenue 5/13 at 100.00 A1 10,186,200
Bonds, Baycare Health System, Series 2003,
5.500%, 11/15/33
4,625 South Broward Hospital District, Florida, Hospital Revenue 5/12 at 101.00 Aa3 4,850,469
Bonds, Series 2002, 5.625%, 5/01/32
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 17.3%
Broward County Housing Finance Authority, Florida, Multifamily
Housing Revenue Refunding Bonds, Tamarac Pointe Apartments
Project, Series 1996, GNMA Collateralized:
1,500 6.250%, 7/01/26 7/06 at 102.00 AAA 1,577,130
1,000 6.300%, 1/01/32 7/06 at 102.00 AAA 1,049,640
9,600 Broward County Housing Finance Authority, Florida, 6/09 at 102.00 N/R 8,584,416
Multifamily Housing Revenue Bonds, Pembroke Gardens
Project, Series 1999, 6.150%, 6/01/39 (Alternative
Minimum Tax) (Mandatory put 6/01/29)
1,245 Florida Housing Finance Agency, General Mortgage 6/04 at 101.00 AAA 1,271,319
Revenue Refunding Bonds, Series 1992A, 6.400%, 6/01/24
1,000 Florida Housing Finance Agency, Housing Revenue Bonds, 10/05 at 102.00 AAA 1,035,860
Holly Cove Apartment Project, Series 1995F,
6.150%, 10/01/25 (Alternative Minimum Tax) -
AMBAC Insured
3,170 Florida Housing Finance Corporation, Housing Revenue 12/08 at 102.00 A+ 3,193,363
Refunding Bonds, Hunters Ridge at Deerwood Apartments,
Series 1998-0, 5.300%, 12/01/28
5,790 Florida Housing Finance Corporation, Housing Revenue 10/10 at 102.00 Aaa 6,145,217
Bonds, Villa de Mallorca Apartments, Series 2000H-1,
6.000%, 7/01/33 (Alternative Minimum Tax)
7,445 Florida Housing Finance Corporation, Revenue Bonds, 2/16 at 100.00 N/R 6,541,698
Pembroke Apartments, Series 2001B, 7.750%, 2/01/41
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 2,575 Florida Housing Finance Corporation, Revenue Bonds, River 2/16 at 100.00 N/R $ 1,609,375
Run Apartments, Series 2001, 7.750%, 2/01/41
3,630 Miami-Dade County Housing Finance Authority, Florida, 1/11 at 102.00 AAA 3,755,671
Multifamily Revenue Bonds, Sunset Bay Apartments
Project, Series 2000-5A, 5.950%, 7/01/30 (Alternative
Minimum Tax) - FSA Insured
3,240 Pinellas County Housing Finance Authority, Florida, 1/08 at 100.00 AAA 3,493,336
Multifamily Housing Revenue Bonds, Emerald Bay
Apartments Projects, Series 1998A, 5.000%, 4/01/28
(Alternative Minimum Tax) (Mandatory put 4/01/08)
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.3%
3,240 Broward County Housing Finance Authority, Florida, 4/09 at 25.51 Aaa 574,744
Single Family Mortgage Revenue Refunding Bonds,
Series 2000B, 0.000%, 4/01/29 (Alternative
Minimum Tax)
1,995 Broward County Housing Finance Authority, Florida, 4/10 at 25.36 Aaa 354,871
Single Family Mortgage Revenue Bonds, Series 2001C,
0.000%, 4/01/33 (Alternative Minimum Tax)
3,070 Florida Housing Finance Agency, Homeowner Mortgage 1/06 at 102.00 AA 3,194,796
Revenue Bonds, Refunding/New Money Issue,
Series 1995-2, 6.200%, 7/01/27 (Alternative
Minimum Tax)
600 Florida Housing Finance Agency, Home Ownership Revenue No Opt. Call AAA 667,992
Refunding Bonds, Series 1987-G1, 8.595%, 11/01/17
935 Lee County Housing Finance Authority, Florida, Single 3/07 at 105.00 Aaa 997,552
Family Mortgage Revenue Bonds, Multi-County Program,
Series 1997A-1, 7.200%, 3/01/27 (Alternative Minimum Tax)
340 Miami-Dade County Housing Authority, Florida, Home 4/08 at 101.50 Aaa 356,572
Owner Mortgage Revenue Bonds, Series 1999A-1,
5.550%, 10/01/19 (Alternative Minimum Tax)
1,955 Orange County Housing Finance Authority, Florida, Single 4/06 at 102.00 AAA 2,037,560
Family Mortgage Revenue Bonds, Series 1996A,
6.300%, 4/01/28 (Alternative Minimum Tax)
1,215 Orange County Housing Finance Authority, Florida, Single 9/07 at 102.00 AAA 1,222,217
Family Mortgage Revenue Bonds, Series 1997B,
5.100%, 9/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.9%
7,285 Atlantic Beach, Florida, Health Care Facilities Revenue 10/09 at 101.00 A 7,697,185
Refunding Bonds, Fleet Landing Project, Series 1999,
5.750%, 10/01/18 - ACA Insured
1,750 Jacksonville Health Facilities Authority, Florida, Industrial 12/04 at 100.00 Ca 927,500
Development Revenue Bonds, National Benevolent
Association, Cypress Village Project, Series 1992,
7.000%, 12/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 4.9%
10,000 Hillsborough County Industrial Development Authority, 4/10 at 101.00 N/R 10,730,700
Florida, Exempt Facilities Revenue Bonds, National
Gypsum Company Apollo Beach Project, Series 2000B,
7.125%, 4/01/30 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 10.0%
4,940 Florida State Board of Education, Full Faith and Credit, 6/11 at 101.00 AAA 5,131,326
Public Education Capital Outlay Bonds, Series 2001C,
5.125%, 6/01/29 - FGIC Insured
15,925 Florida State Board of Education, Full Faith and Credit, 6/12 at 101.00 AAA 16,926,046
Public Education Capital Outlay Bonds, Series 2002B,
5.000%, 6/01/20 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 20.8%
850 Miami-Dade County, Florida, Beacon Tradeport 5/12 at 102.00 AA 914,583
Community Development District, Special Assessment
Bonds, Commercial Project, Series 2002A, 5.625%, 5/01/32 -
RAAI Insured
5,760 Escambia County, Florida, Capital Improvement Revenue 10/12 at 100.00 AAA 5,907,341
Bonds, Series 2002, 5.000%, 10/01/32 - MBIA Insured
Florida Municipal Loan Council, Revenue Bonds, Series 2000B:
1,040 0.000%, 11/01/25 - MBIA Insured No Opt. Call AAA 342,316
1,590 0.000%, 11/01/26 - MBIA Insured No Opt. Call AAA 495,174
1,700 Florida Municipal Loan Council, Revenue Bonds, 5/13 at 100.00 AAA 1,745,560
Series 2003A, 5.000%, 5/01/28 - MBIA Insured
3,145 Jacksonville, Florida, Excise Taxes Revenue Refunding 10/13 at 100.00 AAA 3,445,002
Bonds, Series 2003C, 5.250%, 10/01/18 (Alternative
Minimum Tax) - MBIA Insured
19
Nuveen Florida Quality Income Municipal Fund (NUF) (continued)
Portfolio of INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,430 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/11 at 100.00 AAA $ 1,482,410
Bonds, Series 2001, 5.000%, 10/01/23 - AMBAC Insured
2,750 Jacksonville, Florida, Local Government Sales Tax Revenue 10/12 at 100.00 AAA 3,079,477
Refunding and Improvement Bonds, Series 2002,
5.375%, 10/01/17 - FGIC Insured
5,130 Manatee County School District, Florida, Sales Tax 10/13 at 100.00 AAA 5,598,985
Revenue Bonds, Series 2003, 5.000%, 10/01/17 -
AMBAC Insured
2,475 Northern Palm Beach County Improvement District, 8/10 at 102.00 AA 2,797,097
Florida, Water Control and Improvement Bonds, Unit
Development No. 19, Series 2000, 6.100%, 8/01/21 -
RAAI Insured
2,000 Opa-Locka, Florida, Capital Improvement Revenue Bonds, 1/04 at 102.00 AAA 2,047,420
Series 1994, 6.125%, 1/01/24 - FGIC Insured
2,040 Palm Beach County School Board, Florida, Certificates 8/12 at 100.00 AAA 2,198,284
of Participation, Series 2002D, 5.250%, 8/01/21 -
FSA Insured
2,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 2,417,720
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
11,815 Volusia County School Board, Florida, Sales Tax Revenue 10/12 at 100.00 AAA 13,451,614
Bonds, Series 2002, 5.375%, 10/01/14 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 27.9%
2,225 Broward County, Florida, Airport System Revenue Bonds, 10/11 at 101.00 AAA 2,332,134
Series 2001-J1, 5.250%, 10/01/21 (Alternative
Minimum Tax) - AMBAC Insured
12,000 Dade County, Florida, Aviation Revenue Bonds, 10/06 at 102.00 AAA 12,947,160
Series 1996A, 5.750%, 10/01/26 (Alternative Minimum
Tax) - MBIA Insured
1,500 Dade County, Florida, Aviation Revenue Bonds, 10/05 at 102.00 AAA 1,620,840
Series 1995B, 6.000%, 10/01/24 (Alternative Minimum
Tax) - MBIA Insured
15,000 Dallas and Fort Worth, Texas, Joint Revenue Bonds, 11/09 at 100.00 AAA 17,091,900
Dallas-Fort Worth International Airport, Series 2000A,
6.125%, 11/01/35 (Alternative Minimum Tax) - FGIC Insured
3,500 Greater Orlando Aviation Authority, Florida, Airport 10/07 at 101.00 AAA 3,620,120
Facilities Revenue Bonds, Series 1997, 5.250%, 10/01/23
(Alternative Minimum Tax) - FGIC Insured
4,000 Greater Orlando Aviation Authority, Florida, Airport 10/12 at 100.00 AAA 4,150,760
Facilities Revenue Bonds, Series 2002B,
5.125%, 10/01/21 (Alternative Minimum Tax) -
FSA Insured
7,500 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/08 at 101.00 AAA 7,626,150
Miami International Airport, Series 1998A,
5.000%, 10/01/24 (Alternative Minimum Tax) -
FGIC Insured
4,000 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/08 at 101.00 AAA 4,083,520
Miami International Airport, Series 1998C, 5.000%, 10/01/23
(Alternative Minimum Tax) - MBIA Insured
2,000 Miami-Dade County Expressway Authority, Florida, 7/11 at 101.00 Aaa 2,103,900
Toll System Refunding Revenue Bonds, Series 2001,
5.000%, 7/01/21 - FGIC Insured
6,000 Orlando-Orange County Expressway Authority, Florida, 7/13 at 100.00 AAA 6,185,340
Expressway Revenue Bonds, Series 2003B,
5.000%, 7/01/28 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 3.8%
1,500 Bradford County Health Facilities Authority, Florida, Health No Opt. Call AAA 1,784,070
Facilities Revenue Refunding Bonds, SantaFe Health Care
Facilities Project, Series 1993, 6.050%, 11/15/16
2,000 Florida State Department of Corrections, Certificates 8/04 at 102.00 AA*** 2,097,520
of Participation, Gadsden County Facility, Series 1994,
6.000%, 3/01/14 (Pre-refunded to 8/01/04)
2,300 Sarasota County, Florida, Utility System Revenue Bonds, 10/04 at 102.00 AAA 2,439,633
Series 1994, 6.500%, 10/01/22 (Pre-refunded to
10/01/04) - FGIC Insured
2,000 Seminole County School Board, Florida, Certificates 7/04 at 102.00 AAA 2,090,740
of Participation, Series 1994A, 6.125%, 7/01/19
(Pre-refunded to 7/01/04) - MBIA Insured
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 16.1%
$ 750 Gainesville, Florida, Utilities System Revenue Bonds, 10/13 at 100.00 AA $ 813,360
Series 2003A, 5.250%, 10/01/21
10,000 Hillsborough County Industrial Development Authority, 10/12 at 100.00 Baa1 10,087,700
Florida, Pollution Control Revenue Bonds, Tampa Electric
Company Project, Series 2002, 5.100%, 10/01/13
9,440 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 AA 10,190,480
Refunding Bonds, Series 2002-17 Issue 2, 5.000%, 10/01/15
3,290 Orlando Utilities Commission, Florida, Water and Electric 10/11 at 101.00 Aa1 3,623,869
Revenue Refunding Bonds, Series 2001, 5.250%, 10/01/17
Orlando Utilities Commission, Florida, Water and Electric
Revenue Refunding Bonds, Series 2002C:
3,170 5.250%, 10/01/17 10/12 at 100.00 Aa1 3,500,565
4,130 5.000%, 10/01/27 10/12 at 100.00 Aa1 4,247,620
3,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 3,164,550
Series 2002II, 5.125%, 7/01/26 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.1%
4,500 Broward County, Florida, Water and Sewer Utility Revenue 10/13 at 100.00 AAA 4,666,680
Bonds, Series 2003, 5.000%, 10/01/24 - MBIA Insured
3,310 Cocoa, Florida, Water and Sewer Revenue Bonds, Series 2003 No Opt. Call AAA 3,798,820
Refunding, 5.500%, 10/01/23 - AMBAC Insured
4,000 Hollywood, Florida, Water and Sewer Revenue Refunding 10/13 at 100.00 Aaa 4,258,560
and Improvement Bonds, Series 2003,
5.000%, 10/01/20 - FSA Insured
1,065 Lee County Industrial Development Authority, Florida, 11/12 at 100.00 AAA 1,122,850
Utilities Revenue Bonds, Bonita Springs Utilities Inc.
Project, Series 2002, 5.000%, 11/01/19 (Alternative
Minimum Tax) - MBIA Insured
Village Center Community Development District, Florida,
Utility Revenue Bonds, Series 2003:
2,000 5.125%, 10/01/28 - MBIA Insured 10/13 at 101.00 AAA 2,095,040
2,000 5.000%, 10/01/36 - MBIA Insured 10/13 at 101.00 AAA 2,048,340
- ------------------------------------------------------------------------------------------------------------------------------------
$ 325,060 Total Long-Term Investments (cost $319,301,189) - 150.5% 332,664,193
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.2%
500 Palm Beach County Health Facilities Authority, Florida, VMIG-1 500,000
Revenue Bonds, Bethesda Health Project, Variable Rate
Demand Bonds, Series 2001, 1.310%, 12/01/31+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 500 Total Short-Term Investments (cost $500,000) 500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $319,801,189) - 150.7% 333,164,193
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 4,889,573
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.9)% (117,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 221,053,766
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
21
Nuveen Insured Florida Premium Income Municipal Fund (NFL)
Portfolio of
INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 2.9%
$ 5,325 Escambia County Housing Finance Authority, Florida, 6/09 at 101.00 AAA $ 5,974,543
Dormitory Revenue Bonds, University of West Florida
Foundation, Inc. Project, Series 1999, 5.750%, 6/01/31 -
MBIA Insured
850 State of Florida, State Board of Education Lottery Revenue 7/13 at 101.00 AAA 914,362
Bonds, Series 2003A, 5.000%, 7/01/19 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 12.3%
2,000 Brevard County Health Facilities Authority, Florida, 10/06 at 101.00 AAA 2,118,560
Hospital Revenue Bonds, Holmes Regional Medical
Center Project, Series 1996, 5.625%, 10/01/14 -
MBIA Insured
2,500 Hillsborough County Industrial Development Authority, No Opt. Call AAA 3,122,500
Florida, Industrial Development Revenue Bonds,
University Community Hospital, Series 1994,
6.500%, 8/15/19 - MBIA Insured
5,000 Lee County Hospital Board of Directors, Florida, Fixed- 4/07 at 102.00 AAA 5,543,800
Rate Hospital Revenue Bonds, Lee Memorial Health
System, Series 1997A, 5.750%, 4/01/22 -
MBIA Insured
7,220 Miami-Dade County Health Facilities Authority, Florida, 8/11 at 101.00 AAA 7,473,927
Hospital Refunding Revenue Bonds, Miami Children's
Hospital, Series 2001A, 5.125%, 8/15/26 -
AMBAC Insured
5,000 North Broward Hospital District, Florida, Refunding 1/07 at 101.00 AAA 5,271,000
and Improvement Revenue Bonds, Series 1997,
5.375%, 1/15/24 - MBIA Insured
5,350 Polk County Industrial Development Authority, Florida, 3/04 at 101.50 AAA 5,478,079
Industrial Development Revenue Bonds, Winter Haven
Hospital Project, Series 1985-2, 6.250%, 9/01/15 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 16.8%
980 Broward County, Florida, Housing Finance Authority, 6/07 at 102.00 AAA 1,022,179
Multifamily Housing Revenue Refunding Bonds, Pompano
Oaks Apartments Project, GNMA Collateralized, Series 1997,
6.000%, 12/01/27 (Alternative Minimum Tax)
Collier County Housing Finance Authority, Florida, Multifamily
Housing Revenue Refunding Bonds, Saxon Manor Isles Project,
Series 1998A-1:
1,040 5.350%, 9/01/18 (Alternative Minimum Tax) - FSA Insured 3/08 at 101.00 AAA 1,081,642
1,400 5.400%, 9/01/23 (Alternative Minimum Tax) - FSA Insured 3/08 at 101.00 AAA 1,439,354
Collier County Housing Finance Authority, Florida, Multifamily
Housing Revenue Bonds, Saxon Manor Isles Project, Series 1998B:
1,260 5.350%, 9/01/18 (Alternative Minimum Tax) - FSA Insured 3/08 at 101.00 AAA 1,310,450
1,000 5.400%, 9/01/23 (Alternative Minimum Tax) - FSA Insured 3/08 at 101.00 AAA 1,028,110
Dade County Housing Finance Authority, Florida, Multifamily
Mortgage Revenue Bonds, Siesta Pointe Apartments Project,
Series 1997A:
1,230 5.650%, 9/01/17 (Alternative Minimum Tax) - FSA Insured 9/07 at 101.00 AAA 1,286,924
1,890 5.750%, 9/01/29 (Alternative Minimum Tax) - FSA Insured 9/07 at 101.00 AAA 1,952,181
1,400 Florida Housing Finance Agency, Housing Revenue Bonds, 4/07 at 102.00 AAA 1,473,878
Riverfront Apartments Project, Series 1997A,
6.250%, 4/01/37 (Alternative Minimum Tax) -
AMBAC Insured
1,590 Florida Housing Finance Agency, Housing Revenue Bonds, 12/05 at 102.00 AAA 1,654,061
Williamsburg Village Apartments Project, Series 1995E,
6.100%, 12/01/20 (Alternative Minimum Tax) -
AMBAC Insured
1,000 Florida Housing Finance Agency, Housing Revenue Bonds, 5/06 at 102.00 AAA 1,047,650
Turtle Creek Apartments Project, Series 1996-C1,
6.100%, 5/01/16 (Alternative Minimum Tax) -
AMBAC Insured
Florida Housing Finance Agency, Housing Revenue Bonds,
Sterling Palms Apartments Project, Series 1996D-1:
1,000 6.300%, 12/01/16 (Alternative Minimum Tax) - AMBAC Insured 6/06 at 102.00 AAA 1,050,920
1,500 6.400%, 12/01/26 (Alternative Minimum Tax) - AMBAC Insured 6/06 at 102.00 AAA 1,568,475
750 Florida Housing Finance Agency, Housing Revenue Bonds, 12/06 at 102.00 AAA 782,678
The Crossings at Indian Run Apartments Project,
Series 1996V, 6.100%, 12/01/26 (Alternative Minimum
Tax) - AMBAC Insured
2,535 Florida Housing Finance Corporation, GNMA Collateralized 9/10 at 102.00 AAA 2,575,915
Housing Revenue Bonds, Raintree Apartments,
Series 2000J-1, 5.950%, 3/01/35 (Alternative
Minimum Tax)
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 2,085 Florida Housing Finance Corporation, GNMA Collateralized 12/10 at 102.00 AAA $ 2,214,937
Housing Revenue Bonds, Cobblestone Apartments,
Series 2000K-1, 6.000%, 12/01/33 (Alternative
Minimum Tax)
Florida Housing Finance Corporation, Housing Revenue
Bonds, Augustine Club Apartments, Series 2000D-1:
1,500 5.500%, 10/01/20 - MBIA Insured 10/10 at 102.00 Aaa 1,595,670
4,750 5.750%, 10/01/30 - MBIA Insured 10/10 at 102.00 Aaa 5,025,453
3,605 Jacksonville, Florida, GNMA Collateralized Housing 3/04 at 102.00 AAA 3,614,229
Revenue Refunding Bonds, Windermere Manor
Apartments Project, Series 1993A, 5.875%, 3/20/28
1,425 Miami-Dade County Housing Finance Authority, Florida, 6/11 at 100.00 AAA 1,494,982
Multifamily Mortgage Revenue Bonds, Country Club
Villas II Project, Series 2001-1A, 5.750%, 7/01/27
(Alternative Minimum Tax) - FSA Insured
4,950 Nevada Housing Division, Multi-Unit Housing Bonds, 4/10 at 100.00 AAA 5,198,144
Whispering Palms Project, Series 2000A, 6.300%, 4/01/32
(Alternative Minimum Tax) - FSA Insured
1,065 Housing Finance Authority of Palm Beach County, Florida, 7/12 at 100.00 AAA 1,093,606
Multifamily Housing Revenue Bonds, Westlake
Apartments Project - Phase II, Series 2002,
5.150%, 7/01/22 (Alternative Minimum Tax) -
FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.9%
1,150 Broward County Housing Finance Authority, Florida, Single 4/09 at 101.00 Aaa 1,172,816
Family Mortgage Revenue Refunding Bonds, Series 199B,
5.250%, 4/01/31 (Alternative Minimum Tax) - MBIA Insured
1,390 Duval County Housing Finance Authority, Florida, GNMA 10/04 at 102.00 Aaa 1,431,283
Mortgage-Backed Securities Program Single Family
Mortgage Revenue Bonds, Series 1994,
6.700%, 10/01/26 (Alternative Minimum Tax)
1,735 Escambia County Housing Finance Authority, Florida, 4/08 at 102.00 Aaa 1,765,397
Single Family Mortgage Revenue Bonds, Multi-County
Program, Series 1999, 5.200%, 4/01/32 (Alternative
Minimum Tax) - MBIA Insured
9,150 Florida Housing Finance Corporation, Homeowner 1/10 at 24.65 AAA 1,524,756
Mortgage Revenue Bonds, Series 2000-4, 0.000%, 7/01/30
(Alternative Minimum Tax) - FSA Insured
3,775 Florida Housing Finance Corporation, Homeowner Mortgage 1/09 at 31.28 AAA 853,528
Revenue Bonds, Series 1999-2, 0.000%, 7/01/30
(Alternative Minimum Tax) - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 0.4%
3,195 Galveston County, Texas, Unlimited Tax Road Bonds, No Opt. Call Aaa 996,936
Series 2001, 0.000%, 2/01/26 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 35.7%
4,835 Cape Coral, Florida, Capital Improvement Revenue Bonds, 10/09 at 101.00 Aaa 5,195,933
Series 1999, 5.375%, 10/01/24 - FSA Insured
1,250 Dade County, Florida, Special Obligation and Refunding Bonds, 10/06 at 102.00 AAA 1,267,625
Series 1996B, 5.000%, 10/01/35 - AMBAC Insured
1,555 DeSoto County, Florida, Capital Improvement Revenue Bonds, 4/12 at 101.00 AAA 1,691,840
Series 2002, 5.250%, 10/01/20 - MBIA Insured
Destin, Florida, Capital Improvement Revenue Bonds,
Series 2002:
1,000 5.000%, 8/01/27 - MBIA Insured 8/12 at 101.00 Aaa 1,027,010
1,000 5.125%, 8/01/31 - MBIA Insured 8/12 at 101.00 Aaa 1,032,840
1,910 Escambia County, Florida, Capital Improvement Revenue Bonds, 10/12 at 100.00 AAA 1,967,166
Series 2002, 5.000%, 10/01/27 - MBIA Insured
2,230 Florida Ports Financing Commission, Revenue Bonds, State 10/09 at 101.00 AAA 2,391,407
Transportation Trust Fund - Intermodal Program,
Series 1999, 5.500%, 10/01/23 (Alternative Minimum
Tax) - FGIC Insured
1,435 Florida Department of Environmental Protection, Florida 7/13 at 101.00 AAA 1,543,658
Forever Revenue Bonds, Series 2003A,
5.000%, 7/01/19 - FGIC Insured
Florida Municipal Loan Council, Revenue Bonds,
Series 2000B:
3,365 5.375%, 11/01/25 - MBIA Insured 11/10 at 101.00 AAA 3,605,261
3,345 5.375%, 11/01/30 - MBIA Insured 11/10 at 101.00 AAA 3,574,400
Florida Municipal Loan Council, Revenue Bonds,
Series 2001A:
1,000 5.250%, 11/01/18 - MBIA Insured 11/11 at 101.00 AAA 1,095,930
1,500 4.750%, 11/01/21 - MBIA Insured 11/11 at 101.00 AAA 1,542,975
23
Nuveen Insured Florida Premium Income Municipal Fund (NFL) (continued)
Portfolio of INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,080 Gulf Breeze, Florida, Local Government Loan Program, 12/06 at 101.00 AAA $ 1,204,416
Remarketed 6-3-1996, Series 1985B, 5.900%, 12/01/15
(Mandatory put 12/01/10) - FGIC Insured
1,020 Gulf Breeze, Florida, Local Government Loan Program, 12/06 at 101.00 AAA 1,137,504
Remarketed 6-3-1996, Series 1985C, 5.900%, 12/01/15
(Mandatory put 12/01/08) - FGIC Insured
1,500 Gulf Breeze, Florida, Local Government Loan Program, 12/10 at 101.00 AAA 1,666,095
Remarketed 7-3-2000, Series 1985E, 5.750%, 12/01/20
(Mandatory put 12/01/19) - FGIC Insured
5,200 Gulf Breeze, Florida, Local Government Loan Program, 12/11 at 101.00 AAA 5,684,276
Remarketed 6-1-2001, Series 1985E, 4.750%, 12/01/20
(Mandatory put 12/01/11) - FGIC Insured
6,000 Hillsborough County School Board, Florida, Certificates 7/13 at 100.00 AAA 6,180,720
of Participation, Series 2003, 5.000%, 7/01/29 -
MBIA Insured
1,500 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/13 at 100.00 AAA 1,639,290
Bonds, Series 2003, 5.250%, 10/01/20 - MBIA Insured
1,765 Julington Creek Plantation Community Development District, 5/12 at 101.00 AAA 1,837,153
Florida, Special Assessment Revenue Bonds, Series 2002,
4.750%, 5/01/19 - MBIA Insured
Lakeland, Florida, Utility Tax Revenue Bonds, Series 2003B:
1,730 5.000%, 10/01/18 - AMBAC Insured 10/12 at 100.00 AAA 1,854,577
2,000 5.000%, 10/01/19 - AMBAC Insured 10/12 at 100.00 AAA 2,130,340
18,000 Miami-Dade County, Florida, Subordinate Special Obligation 4/08 at 49.54 AAA 7,212,060
Bonds, Series 1997A, 0.000%, 10/01/21 - MBIA Insured
1,000 Opa-Locka, Florida, Capital Improvement Revenue Bonds, 1/04 at 102.00 AAA 1,024,700
Series 1994, 7.000%, 1/01/14 - FGIC Insured
Orange County, Florida, Sales Tax Revenue Bonds,
Series 2002B:
3,180 5.125%, 1/01/19 - FGIC Insured 1/13 at 100.00 AAA 3,429,471
1,500 5.125%, 1/01/32 - FGIC Insured 1/13 at 100.00 AAA 1,558,065
4,770 Orange County School Board, Florida, Master Lease 8/07 at 101.00 Aaa 5,181,699
Program, Certificates of Participation, Series 1997A,
5.375%, 8/01/22 - MBIA Insured
6,500 Palm Beach County, Florida, Administrative Complex Revenue No Opt. Call AAA 7,415,785
Refunding Bonds, Series 1993, 5.250%, 6/01/11 -
FGIC Insured
Palm Beach County, Florida, Criminal Justice Facilities,
Revenue Refunding Bonds, Series 1993:
2,500 5.375%, 6/01/08 - FGIC Insured No Opt. Call AAA 2,821,600
4,000 5.375%, 6/01/10 - FGIC Insured No Opt. Call AAA 4,586,840
1,245 Tamarac, Florida, Sales Tax Revenue Bonds, 4/12 at 100.00 AAA 1,301,834
Series 2002, 5.000%, 4/01/22 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 26.2%
9,000 Broward County, Florida, Airport System Revenue Bonds, 10/11 at 101.00 AAA 9,308,700
Series 2001-J1, 5.250%, 10/01/26 (Alternative
Minimum Tax) - AMBAC Insured
3,000 Dade County, Florida, Aviation Revenue Refunding Bonds, 4/04 at 102.00 AAA 3,069,810
Series 1993Y, 5.500%, 10/01/11 - FGIC Insured
1,100 Dade County, Florida, Seaport Revenue Refunding Bonds, 10/05 at 102.00 AAA 1,196,305
Series 1995, 5.750%, 10/01/15 - MBIA Insured
15,000 Dallas and Fort Worth, Texas, Joint Revenue Bonds, Dallas- 11/09 at 100.00 AAA 17,091,900
Fort Worth International Airport, Series 2000A,
6.125%, 11/01/35 (Alternative Minimum Tax) - FGIC Insured
5,000 Director of Nevada State Department of Business No Opt. Call AAA 1,474,600
and Industry, Revenue Bonds, Las Vegas Monorail Project,
1st Tier Series 2000, 0.000%, 1/01/27 - AMBAC Insured
2,105 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/13 at 100.00 AAA 2,270,790
Revenue Refunding Bonds, Series 2003A,
5.000%, 10/01/17 - FSA Insured
3,800 Jacksonville Port Authority, Florida, 1996 Port Facilities 11/06 at 102.00 AAA 4,153,096
Revenue Bonds, 5.625%, 11/01/18 (Alternative
Minimum Tax) - MBIA Insured
15,025 Lee County, Florida, Airport Revenue Bonds, Series 2000A, 10/10 at 101.00 AAA 16,859,552
6.000%, 10/01/32 (Alternative Minimum Tax) - FSA Insured
5,615 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/12 at 100.00 AAA 6,239,893
Miami International Airport, Series 2002,
5.750%, 10/01/19 (Alternative Minimum Tax) -
FGIC Insured
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 20.9%
$ 3,750 Broward County Health Facilities Authority, Florida, Hospital 6/05 at 100.00 AAA $ 3,942,525
Revenue Bonds, Holy Cross Hospital, Inc., Series 1993,
5.850%, 6/01/12 (Pre-refunded to 6/01/05) -
AMBAC Insured
2,700 Cocoa, Florida, Water and Sewer System Revenue Bonds, 10/07 at 101.00 AAA 3,099,546
Series 1997, 5.875%, 10/01/26 (Pre-refunded
to 10/01/07) - FGIC Insured
4,500 Florida Department of Environmental Protection, 7/05 at 101.00 AAA 4,844,520
Preservation 2000 Revenue Bonds, Series 1995A,
5.750%, 7/01/11 (Pre-refunded to 7/01/05) -
AMBAC Insured
1,025 Jacksonville, Florida, Sales Tax Revenue Bonds, River 10/05 at 101.00 AAA 1,108,589
City Renaissance Project, Series 1995,
5.500%, 10/01/10 (Pre-refunded to 10/01/05) -
FGIC Insured
990 Orange County, Florida, Tourist Development Tax Revenue 4/04 at 101.00 AAA 1,002,157
Bonds, Series 1992A, 6.250%, 10/01/13 - AMBAC Insured
St. Lucie County, Florida, Utility System Revenue
Refunding Bonds, Series 1993:
5,000 5.500%, 10/01/15 - FGIC Insured 4/04 at 102.00 AAA 5,192,950
1,200 5.500%, 10/01/21 - FGIC Insured 4/04 at 102.00 AAA 1,244,796
7,855 Seminole County, Florida, Water and Sewer Revenue No Opt. Call AAA 9,620,019
Refunding and Improvement Bonds, Series 1992,
6.000%, 10/01/19 - MBIA Insured
Sunrise, Florida, Utility System Revenue Bonds, Series 1996A:
6,900 5.750%, 10/01/16 (Pre-refunded to 10/01/06) - AMBAC Insured 10/06 at 101.00 AAA 7,722,273
8,700 5.750%, 10/01/21 (Pre-refunded to 10/01/06) - AMBAC Insured 10/06 at 101.00 AAA 9,736,779
1,500 Tampa, Florida, Allegany Health System Revenue Bonds, 6/04 at 101.50 AAA 1,593,315
St. Joseph Hospital, Inc., Series 1993,
5.125%, 12/01/23 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.0%
3,525 Palm Beach County Solid Waste Authority, Florida, Revenue No Opt. Call AAA 4,132,322
Refunding Bonds, Series 1997A, 6.000%, 10/01/09 -
AMBAC Insured
8,000 Palm Beach County Solid Waste Authority, Florida, Revenue No Opt. Call AAA 5,190,560
Bonds, Series 2002B, 0.000%, 10/01/14 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 23.2%
670 Clay County, Florida, Utility System Revenue Refunding 11/13 at 100.00 Aaa 728,826
Bonds, Series 2003B, 5.000%, 11/01/17 - FSA Insured
510 Clay County, Florida, Utility System Revenue Refunding Bonds, 11/13 at 100.00 Aaa 554,778
Series 2003C, 5.000%, 11/01/17 - FSA Insured
Davie, Florida, Water and Sewer Revenue Refunding and
Improvement Bonds, Series 2003:
910 5.250%, 10/01/17 - AMBAC Insured 10/13 at 100.00 AAA 1,015,442
475 5.250%, 10/01/18 - AMBAC Insured 10/13 at 100.00 AAA 526,362
Deltona, Florida, Utility Systems Water and Sewer Revenue
Bonds, Series 2003:
1,250 5.250%, 10/01/22 - MBIA Insured 10/13 at 100.00 AAA 1,350,400
1,095 5.000%, 10/01/23 - MBIA Insured 10/13 at 100.00 AAA 1,143,465
1,225 5.000%, 10/01/24 - MBIA Insured 10/13 at 100.00 AAA 1,270,374
1,000 Florida Governmental Utility Authority, Utility Revenue Bonds, 7/09 at 101.00 Aaa 1,024,810
Golden Gate Utility System, Series 1999, 5.000%, 7/01/29 -
AMBAC Insured
8,000 Indian River County, Florida, Water and Sewer Revenue 9/08 at 102.00 AAA 8,466,880
Bonds, Series 1993A, 5.250%, 9/01/24 - FGIC Insured
2,000 Indian Trail Water Control District, Florida, Water Control 8/07 at 101.00 AAA 2,198,000
and Improvement Bonds, Unit of Development No. 17,
Series 1996, 5.500%, 8/01/22 - MBIA Insured
3,450 JEA, Florida, Water and Sewer System Revenue Bonds, 4/07 at 100.00 AAA 3,651,032
Series 2002A, 5.375%, 10/01/30 - MBIA Insured
1,450 Jupiter, Florida, Water Revenue Bonds, Series 2003, 10/13 at 100.00 AAA 1,525,922
5.000%, 10/01/22 - AMBAC Insured
2,000 Manatee County, Florida, Public Utilities Revenue Bonds, 10/13 at 100.00 Aaa 2,154,100
Series 2003, 5.125%, 10/01/20 - MBIA Insured
25
Nuveen Insured Florida Premium Income Municipal Fund (NFL) (continued)
Portfolio of INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
Marco Island, Florida, Water Utility System Revenue Bonds,
Series 2003:
$ 1,350 5.250%, 10/01/17 - MBIA Insured 10/13 at 100.00 AAA $ 1,506,425
1,000 5.250%, 10/01/18 - MBIA Insured 10/13 at 100.00 AAA 1,108,130
1,750 Palm Beach Bay, Florida, Utility System Revenue Bonds, 10/13 at 100.00 AAA 1,863,120
Palm Bay Utility Corporation Project, Series 2003,
5.000%, 10/01/20 - MBIA Insured
Palm Coast, Florida, Water Utility System Revenue Bonds,
Series 2003:
1,000 5.250%, 10/01/19 - MBIA Insured 10/13 at 100.00 AAA 1,099,610
500 5.250%, 10/01/20 - MBIA Insured 10/13 at 100.00 AAA 546,430
500 5.250%, 10/01/21 - MBIA Insured 10/13 at 100.00 AAA 543,075
Port St. Lucie, Florida, Stormwater Utility System Revenue
Refunding Bonds, Series 2002:
1,190 5.250%, 5/01/15 - MBIA Insured 5/12 at 100.00 AAA 1,328,861
1,980 5.250%, 5/01/17 - MBIA Insured 5/12 at 100.00 AAA 2,181,089
10,000 Port St. Lucie, Florida, Utility System Revenue Bonds, 9/11 at 34.97 AAA 2,330,300
Series 2001, 0.000%, 9/01/29 - MBIA Insured
2,330 Port St. Lucie, Florida, Utility System Revenue Bonds, 9/13 at 100.00 AAA 2,464,371
Series 2003, 5.000%, 9/01/21 - MBIA Insured
Sebring, Florida, Water and Wastewater Revenue Refunding
Bonds, Series 2002:
1,360 5.250%, 1/01/17 - FGIC Insured 1/13 at 100.00 AAA 1,507,492
770 5.250%, 1/01/18 - FGIC Insured 1/13 at 100.00 AAA 847,955
500 5.250%, 1/01/20 - FGIC Insured 1/13 at 100.00 AAA 543,500
3,530 Seminole County, Florida, Water and Sewer Revenue No Opt. Call AAA 4,294,492
Refunding and Improvement Bonds, Series 1992,
6.000%, 10/01/19 - MBIA Insured
1,300 Sunrise, Florida, Utility System Revenue Refunding Bonds, 10/06 at 102.00 AAA 1,457,612
Series 1996, 5.800%, 10/01/11 - AMBAC Insured
Village Center Community Development District, Florida,
Utility Revenue Bonds, Series 2003:
2,000 5.250%, 10/01/23 - MBIA Insured 10/13 at 101.00 AAA 2,150,440
2,000 5.125%, 10/01/28 - MBIA Insured 10/13 at 101.00 AAA 2,095,040
1,100 Wauchula, Florida, Utility Revenue Bonds, Series 2001A, 10/11 at 101.00 AAA 1,125,354
5.000%, 10/01/31 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
$ 353,995 Total Long-Term Investments (cost $312,703,997) - 145.3% 341,654,079
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 4,406,750
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.2)% (111,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 235,060,829
====================================================================================================================
All of the bonds in the portfolio are either covered by
Original Issue Insurance, Secondary Market Insurance or
Portfolio Insurance, or are backed by an escrow or trust
containing sufficient U.S. Government or U.S. Government
agency securities, any of which ensure the timely
payment of principal and interest.
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
See accompanying notes to financial statements.
26
Nuveen Insured Florida Tax-Free Advantage Municipal Fund (NWF)
Portfolio of
INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 8.8%
$ 500 State of Florida, State Board of Education Lottery Revenue 7/13 at 101.00 AAA $ 537,860
Bonds, Series 2003A, 5.000%, 7/01/19 - MBIA Insured
1,985 North Miami, Florida, Educational Facilities Revenue Refunding 4/13 at 100.00 AAA 2,104,775
Bonds, Johnson and Wales University, Series 2003A,
5.000%, 4/01/19 - XLCA Insured
Volusia County Educational Facilities Authority, Florida,
Revenue Refunding Bonds, Embry-Riddle Aeronautical University
Project, Series 2003:
1,000 5.200%, 10/15/26 - RAAI Insured 10/13 at 100.00 AA 1,033,800
1,250 5.200%, 10/15/33 - RAAI Insured 10/13 at 100.00 AA 1,288,300
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 18.8%
4,000 Highlands County Health Facilities Authority, Florida, 11/13 at 100.00 A 4,207,720
Revenue Bonds, Adventist Health System/Sunbelt
Obligated Group, Series 2003D, 5.875%, 11/15/29
1,750 Leesburg, Florida, Hospital Revenue Refunding Bonds, 7/13 at 100.00 A 1,783,810
Leesburg Regional Medical Center, Series 2003,
5.000%, 7/01/17
3,000 Pinellas County Health Facilities Authority, Florida, 5/13 at 100.00 A1 3,122,100
Revenue Bonds, Baycare Health System, Series 2003,
5.750%, 11/15/27
1,500 South Miami Health Facilities Authority, Florida, Hospital 2/13 at 100.00 Aa3 1,519,980
Revenue Bonds, Baptist Health Systems of South Florida,
Series 2003, 5.200%, 11/15/28
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.1%
1,585 Florida Housing Finance Agency, Home Ownership Revenue No Opt. Call AAA 1,764,612
Refunding Bonds, Series 1987-G1, 8.595%, 11/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 18.1%
3,665 Florida State Board of Education, Full Faith and Credit, 6/12 at 101.00 AAA 3,766,557
Public Education Capital Outlay Bonds, Series 2002A,
5.000%, 6/01/32 - MBIA Insured
2,660 Grand Prairie Independent School District, Dallas County, 2/13 at 100.00 AAA 2,839,603
Texas, General Obligation Bonds, Series 2003,
5.375%, 2/15/26 - FSA Insured
3,500 State Public School Building Authority, Pennsylvania, 6/13 at 100.00 AAA 3,596,460
Lease Revenue Bonds, Philadelphia School District
Project, Series 2003, 5.000%, 6/01/33 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 55.9%
1,000 Escambia County, Florida, Sales Tax Revenue Refunding 10/12 at 101.00 AAA 1,113,030
Bonds, Series 2002, 5.250%, 10/01/17 - AMBAC Insured
1,525 Fernandina Beach, Florida, Utility Acquisition and Improvement 9/13 at 100.00 AAA 1,592,054
Revenue Bonds, Series 2003, 5.000%, 9/01/23 - FGIC Insured
4,000 Florida Municipal Loan Council, Revenue Bonds, 12/13 at 100.00 AAA 4,118,720
Series 2003B, 5.000%, 12/01/28 - MBIA Insured
4,000 Hillsborough County School Board, Florida, Certificates 7/13 at 100.00 AAA 4,120,480
of Participation, Series 2003, 5.000%, 7/01/29 -
MBIA Insured
2,270 Jacksonville, Florida, Local Government Sales Tax Revenue 10/12 at 100.00 AAA 2,524,058
Refunding and Improvement Bonds, Series 2002,
5.375%, 10/01/18 - FGIC Insured
1,235 Julington Creek Plantation Community Development 5/12 at 101.00 AAA 1,266,875
District, Florida, Special Assessment Revenue Bonds,
Series 2002, 5.000%, 5/01/29 - MBIA Insured
2,265 Lakeland, Florida, Utility Tax Revenue Bonds, 10/12 at 100.00 AAA 2,398,952
Series 2003B, 5.000%, 10/01/20 - AMBAC Insured
1,500 Orange County, Florida, Sales Tax Revenue Bonds, 1/13 at 100.00 AAA 1,558,065
Series 2002B, 5.125%, 1/01/32 - FGIC Insured
3,370 Osceola County School Board, Florida, Certificates 6/12 at 101.00 Aaa 3,617,055
of Participation, Series 2002A, 5.125%, 6/01/20 -
AMBAC Insured
27
Nuveen Insured Florida Tax-Free Advantage Municipal Fund (NWF) (continued)
Portfolio of INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Palm Beach County School Board, Florida, Certificates
of Participation, Series 2002D:
$ 2,950 5.250%, 8/01/20 - FSA Insured 8/12 at 100.00 AAA $ 3,196,620
3,670 5.000%, 8/01/28 - FSA Insured 8/12 at 100.00 AAA 3,773,788
2,115 Port St. Lucie, Florida, Sales Tax Revenue Bonds, Series 2003, 9/13 at 100.00 AAA 2,207,997
5.000%, 9/01/23 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.9%
2,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 2,070,420
Revenue Bonds, Series 2002A, 5.125%, 10/01/32 -
FSA Insured
1,730 Lee County, Florida, Transportation Facilities Revenue Bonds, 10/14 at 100.00 AAA 1,827,918
Series 2004B, 5.000%, 10/01/22 (WI, settling
1/21/04) - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.7%
2,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 2,109,700
Series 2002II, 5.125%, 7/01/26 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 37.6%
4,000 Deltona, Florida, Utility Systems Water and Sewer Revenue 10/13 at 100.00 AAA 4,110,040
Bonds, Series 2003, 5.000%, 10/01/33 - MBIA Insured
2,000 JEA, Florida, Water and Sewer System Revenue Bonds, 4/07 at 100.00 AAA 2,116,540
Series 2002A, 5.375%, 10/01/30 - MBIA Insured
5,000 Lee County, Florida, Water and Sewer Revenue Refunding 10/13 at 100.00 Aaa 5,163,300
Bonds, Series 2003A, 5.000%, 10/01/27 - MBIA Insured
3,000 Marco Island, Florida, Water Utility System Revenue Bonds, 10/13 at 100.00 AAA 3,097,980
Series 2003, 5.000%, 10/01/27 - MBIA Insured
2,000 Miami-Dade County, Florida, Water and Sewer System 10/09 at 101.00 AAA 2,050,860
Revenue Bonds, Series 1999A, 5.000%, 10/01/29 -
FGIC Insured
500 North Port, Florida, Utility System Revenue Bonds, 10/10 at 101.00 Aaa 514,355
Series 2000, 5.000%, 10/01/25 - FSA Insured
1,500 Port St. Lucie, Florida, Stormwater Utility System Revenue 5/12 at 100.00 AAA 1,558,425
Refunding Bonds, Series 2002, 5.000%, 5/01/23 -
MBIA Insured
2,500 Village Center Community Development District, Florida, 10/13 at 101.00 AAA 2,560,425
Utility Revenue Bonds, Series 2003, 5.000%, 10/01/36 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
$ 82,525 Total Long-Term Investments (cost $83,634,168) - 152.9% 86,233,234
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (1.5)% (818,435)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.4)% (29,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 56,414,799
====================================================================================================================
At least 80% of the Fund's net assets (including net
assets applicable to Preferred shares) are invested
in municipal securities that are either covered by
Original Issue Insurance, Secondary Market Insurance
or Portfolio Insurance which ensures the timely
payment of principal and interest. Up to 20% of the
Fund's net assets (including net assets applicable
to Preferred shares) may be invested in municipal
securities that are (i) either backed by an escrow
or trust containing sufficient U.S. Government or
U.S. Government agency securities (also ensuring the
timely payment of principal and interest), or (ii)
municipal bonds that are rated, at the time of
investment, within the four highest grades (Baa or
BBB or better by Moody's S&P or Fitch) or unrated
but judged to be of comparable quality by the Adviser.
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
28
Statement of
ASSETS AND LIABILITIES December 31, 2003 (Unaudited)
FLORIDA FLORIDA INSURED FLORIDA INSURED FLORIDA
INVESTMENT QUALITY QUALITY INCOME PREMIUM INCOME TAX-FREE ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $358,740,875,
$319,801,189, $312,703,997 and
$83,634,168, respectively) $381,013,524 $333,164,193 $341,654,079 $86,233,234
Cash -- 1,134 -- --
Receivables:
Interest 5,676,290 4,648,781 4,183,264 1,003,742
Investments sold 1,620,443 490,000 576,351 45,000
Other assets 17,717 32,953 18,026 1,492
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 388,327,974 338,337,061 346,431,720 87,283,468
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payables:
Bank borrowings 12,527 -- 77,486 11,468
Investments purchased -- -- -- 1,819,303
Accrued expenses:
Management fees 209,255 182,621 186,638 23,752
Other 95,215 98,335 103,774 14,066
Preferred share dividends payable 1,787 2,339 2,993 80
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 318,784 283,295 370,891 1,868,669
- ------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 132,000,000 117,000,000 111,000,000 29,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $256,009,190 $221,053,766 $235,060,829 $56,414,799
====================================================================================================================================
Common shares outstanding 16,516,231 14,263,970 14,348,561 3,880,259
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.50 $ 15.50 $ 16.38 $ 14.54
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 165,162 $ 142,640 $ 143,486 $ 38,803
Paid-in surplus 230,572,145 205,481,631 203,638,545 54,703,528
Undistributed (Over-distribution of) net investment income 3,369,290 2,799,911 2,761,835 (212,713)
Accumulated net realized gain (loss) from investments (370,056) (733,420) (433,119) (713,885)
Net unrealized appreciation of investments 22,272,649 13,363,004 28,950,082 2,599,066
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $256,009,190 $221,053,766 $235,060,829 $56,414,799
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
29
Statement of
OPERATIONS Six Months Ended December 31, 2003 (Unaudited)
FLORIDA FLORIDA INSURED FLORIDA INSURED FLORIDA
INVESTMENT QUALITY QUALITY INCOME PREMIUM INCOME TAX-FREE ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $10,514,450 $ 9,023,992 $ 8,763,970 $2,015,151
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,234,209 1,074,010 1,096,741 273,627
Preferred shares - auction fees 166,527 147,892 140,510 36,585
Preferred shares - dividend disbursing agent fees 10,081 15,123 10,081 5,042
Shareholders' servicing agent fees and expenses 16,484 12,250 13,473 600
Custodian's fees and expenses 49,335 40,531 41,403 14,301
Trustees' fees and expenses 4,363 3,541 3,611 1,008
Professional fees 48,782 25,736 9,203 6,357
Shareholders' reports - printing and mailing expenses 18,454 12,673 14,851 3,513
Stock exchange listing fees 10,392 7,887 7,860 173
Investor relations expense 24,054 23,128 6,651 4,030
Other expenses 10,064 10,632 9,052 2,333
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit
and expense reimbursement 1,592,745 1,373,403 1,353,436 347,569
Custodian fee credit (8,232) (4,554) (6,482) (11,279)
Expense reimbursement -- -- -- (134,709)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,584,513 1,368,849 1,346,954 201,581
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 8,929,937 7,655,143 7,417,016 1,813,570
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments (401,489) (747,426) (431,928) (734,510)
Change in net unrealized appreciation
(depreciation) of investments (2,582,325) (911,167) (884,826) (139,181)
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (2,983,814) (1,658,593) (1,316,754) (873,691)
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (365,879) (327,779) (343,820) (97,261)
From accumulated net realized gains from investments (189,130) (125,085) (113,631) --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (555,009) (452,864) (457,451) (97,261)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $ 5,391,114 $ 5,543,686 $ 5,642,811 $ 842,618
====================================================================================================================================
See accompanying notes to financial statements.
30
Statement of
CHANGES IN NET ASSETS (Unaudited)
FLORIDA INVESTMENT QUALITY (NQF) FLORIDA QUALITY INCOME (NUF)
------------------------------------- -------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
12/31/03 6/30/03 12/31/03 6/30/03
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 8,929,937 $ 18,145,230 $ 7,655,143 $ 15,393,583
Net realized gain (loss) from investments (401,489) 3,875,859 (747,426) 3,463,251
Change in net unrealized appreciation
(depreciation) of investments (2,582,325) 8,853,791 (911,167) 6,508,220
Distributions to Preferred shareholders:
From net investment income (365,879) (1,204,511) (327,779) (1,022,349)
From accumulated net realized gains from investments (189,130) (226,303) (125,085) (275,955)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common
shares from operations 5,391,114 29,444,066 5,543,686 24,066,750
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (8,331,725) (16,027,701) (7,098,876) (14,168,989)
From accumulated net realized gains from investments (3,232,004) (2,098,066) (2,042,600) (2,512,996)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (11,563,729) (18,125,767) (9,141,476) (16,681,985)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- --
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 325,920 704,166 340,855 874,329
Preferred shares offering costs -- -- -- 7,500
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from capital share transactions 325,920 704,166 340,855 881,829
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares (5,846,695) 12,022,465 (3,256,935) 8,266,594
Net assets applicable to Common shares at the
beginning of period 261,855,885 249,833,420 224,310,701 216,044,107
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the
end of period $256,009,190 $261,855,885 $221,053,766 $224,310,701
====================================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of period $ 3,369,290 $ 3,136,957 $ 2,799,911 $ 2,585,269
====================================================================================================================================
See accompanying notes to financial statements.
31
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
INSURED FLORIDA PREMIUM INCOME (NFL) INSURED FLORIDA TAX-FREE ADVANTAGE (NWF)
-------------------------------------- ----------------------------------------
FOR THE PERIOD
11/21/02
(COMMENCEMENT
OF OPERATIONS)
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED THROUGH
12/31/03 6/30/03 12/31/03 6/30/03
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 7,417,016 $ 14,925,713 $ 1,813,570 $ 1,548,813
Net realized gain (loss) from investments (431,928) 2,057,125 (734,510) 17,814
Change in net unrealized appreciation (depreciation)
of investments (884,826) 10,662,174 (139,181) 2,738,247
Distributions to Preferred shareholders:
From net investment income (343,820) (1,147,462) (97,261) (126,559)
From accumulated net realized gains from investments (113,631) (14,829) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common
shares from operations 5,642,811 26,482,721 842,618 4,178,315
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (6,814,870) (13,374,479) (1,675,961) (1,675,194)
From accumulated net realized gains from investments (1,461,384) (125,967) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (8,276,254) (13,500,446) (1,675,961) (1,675,194)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- 55,321,650
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 203,781 547,078 25,606 24,090
Preferred shares offering costs -- -- -- (726,600)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from capital share transactions 203,781 547,078 25,606 54,619,140
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares (2,429,662) 13,529,353 (807,737) 57,122,261
Net assets applicable to Common shares at the
beginning of period 237,490,491 223,961,138 57,222,536 100,275
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the
end of period $235,060,829 $237,490,491 $56,414,799 $57,222,536
====================================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of period $ 2,761,835 $ 2,503,509 $ (212,713) $ (253,061)
====================================================================================================================================
See accompanying notes to financial statements.
32
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state Funds (the "Funds") covered in this report and their corresponding
Common share stock exchange symbols are Nuveen Florida Investment Quality
Municipal Fund (NQF), Nuveen Florida Quality Income Municipal Fund (NUF), Nuveen
Insured Florida Premium Income Municipal Fund (NFL) and Nuveen Insured Florida
Tax-Free Advantage Municipal Fund (NWF). Common shares of Florida Investment
Quality (NQF), Florida Quality Income (NUF) and Insured Florida Premium Income
(NFL) are traded on the New York Stock Exchange while Common shares of Insured
Florida Tax-Free Advantage (NWF) is traded on the American Stock Exchange. The
Funds are registered under the Investment Company Act of 1940, as amended, as
closed-end management investment companies.
Prior to the commencement of operations of Insured Florida Tax-Free Advantage
(NWF), the Fund had no operations other than those related to organizational
matters, the initial capital contribution of $100,275 by Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc., and the
recording of the organization expenses ($11,500) and its reimbursement by Nuveen
Investments, LLC, also a wholly owned subsidiary of Nuveen Investments, Inc.
Each Fund seeks to provide current income exempt from regular federal income
tax, and in the case of Insured Florida Tax-Free Advantage (NWF) the alternative
minimum tax applicable to individuals, by investing primarily in a diversified
portfolio of municipal obligations issued by state and local government
authorities within the state of Florida.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When price quotes
are not readily available (which is usually the case for municipal securities),
the pricing service establishes fair market value based on yields or prices of
municipal bonds of comparable quality, type of issue, coupon, maturity and
rating, indications of value from securities dealers, evaluations of anticipated
cash flows or collateral and general market conditions. If it is determined that
market prices for a security are unavailable or inappropriate, the Board of
Trustees of the Funds, or its designee, may establish a fair value for the
security. Temporary investments in securities that have variable rate and demand
features qualifying them as short-term securities are valued at amortized cost,
which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At December 31, 2003,
Insured Florida Tax-Free Advantage (NWF) had an outstanding when-issued purchase
commitment of $1,819,303. There were no such outstanding purchase commitments in
any of the other Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Professional Fees
Professional fees presented in the Statement of Operations consist of legal fees
incurred in the normal course of operations, audit fees, tax consulting fees
and, in some cases, workout expenditures. Workout expenditures are incurred in
an attempt to protect or enhance an investment, or to pursue other claims or
legal actions on behalf of the Fund's shareholders.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. Therefore, no federal income tax provision is
required. Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal income
tax, and in the case of Insured Florida Tax-Free Advantage (NWF) the alternative
minimum tax applicable to individuals, to retain such tax-exempt status when
distributed to shareholders of the Funds.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
33
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from accounting
principles generally accepted in the United States.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in one or more Series. The dividend rate
on each Series may change every seven days, as set pursuant to a dutch auction
process by the auction agent, and is payable at or near the end of each rate
period. The number of Preferred shares outstanding, by Series and in total, for
each Fund is as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- --------------------------------------------------------------------------------
Number of shares:
Series M -- 1,700 -- --
Series T 3,080 -- -- --
Series W -- -- 1,640 1,160
Series TH -- 1,700 2,800 --
Series F 2,200 1,280 -- --
- --------------------------------------------------------------------------------
Total 5,280 4,680 4,440 1,160
================================================================================
Effective January 17, 2003, Insured Florida Tax-Free Advantage (NWF) issued
1,160 Series W, $25,000 stated value Preferred shares.
Insurance
Insured Florida Premium Income (NFL) invests in municipal securities which are
either covered by insurance or are backed by an escrow or trust account
containing sufficient U.S. Government or U.S. Government agency securities, both
of which ensure the timely payment of principal and interest.
Insured Florida Tax-Free Advantage (NWF) invests at least 80% of its net assets
(including net assets applicable to Preferred shares) in municipal securities
that are covered by insurance. The Fund may also invest up to 20% of its net
assets (including net assets applicable to Preferred shares) in municipal
securities which are either (i) backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency securities, or (ii)
municipal bonds that are rated, at the time of investment, within the four
highest grades (Baa or BBB or better by Moody's, S&P or Fitch) or unrated but
judged to be of comparable quality by the Adviser.
Each insured municipal security is covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance. Such insurance does not
guarantee the market value of the municipal securities or the value of the
Funds' Common shares. Original Issue Insurance and Secondary Market Insurance
remain in effect as long as the municipal securities covered thereby remain
outstanding and the insurer remains in business, regardless of whether the Funds
ultimately dispose of such municipal securities. Consequently, the market value
of the municipal securities covered by Original Issue Insurance or Secondary
Market Insurance may reflect value attributable to the insurance. Portfolio
Insurance is effective only while the municipal securities are held by the
Funds. Accordingly, neither the prices used in determining the market value of
the underlying municipal securities nor the Common share net asset value of the
Funds include value, if any, attributable to the Portfolio Insurance. Each
policy of the Portfolio Insurance does, however, give the Funds the right to
obtain permanent insurance with respect to the municipal security covered by the
Portfolio Insurance policy at the time of its sale.
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap, and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the six months ended December 31, 2003.
34
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Offering Costs
Nuveen Investments, LLC has agreed to pay all Common share offering costs (other
than the sales load) that exceed $.03 per Common share for Insured Florida
Tax-Free Advantage (NWF). Insured Florida Tax-Free Advantage's (NWF) share of
Common share offering costs ($116,100) were recorded as a reduction of the
proceeds from the sale of Common shares.
Costs incurred by Insured Florida Tax-Free Advantage (NWF) in connection with
its offering of Preferred shares ($726,600) were recorded as a reduction to
paid-in surplus.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
FLORIDA FLORIDA
INVESTMENT QUALITY (NQF) QUALITY INCOME (NUF)
------------------------ ------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
12/31/03 6/30/03 12/31/03 6/30/03
- --------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- --
Shares issued to shareholders
due to reinvestment
of distributions 20,455 43,415 21,677 53,877
- --------------------------------------------------------------------------------------------------------
20,455 43,415 21,677 53,877
========================================================================================================
Preferred shares sold -- -- -- --
========================================================================================================
INSURED FLORIDA INSURED FLORIDA
PREMIUM INCOME (NFL) TAX-FREE ADVANTAGE (NWF)
---------------------- ------------------------------
FOR THE
PERIOD 11/21/02
SIX MONTHS SIX MONTHS (COMMENCEMENT
ENDED YEAR ENDED ENDED OF OPERATIONS)
12/31/03 6/30/03 12/31/03 THROUGH 6/30/03
- --------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- 3,870,000
Shares issued to shareholders
due to reinvestment
of distributions 12,109 32,881 1,676 1,583
- --------------------------------------------------------------------------------------------------------
12,109 32,881 1,676 3,871,583
========================================================================================================
Preferred shares sold -- -- -- 1,160
========================================================================================================
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities for the six months ended December 31, 2003, were as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- --------------------------------------------------------------------------------
Purchases $24,554,392 $30,892,898 $43,336,981 $78,184,513
Sales and maturities 31,551,752 34,469,741 52,765,742 78,116,336
================================================================================
35
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At December 31, 2003, the cost of investments were as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- --------------------------------------------------------------------------------
Cost of investments $358,505,880 $319,793,911 $312,541,853 $83,633,870
================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at December 31, 2003, were as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- -----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $27,819,795 $16,514,997 $29,199,460 $2,700,262
Depreciation (5,312,151) (3,144,715) (87,234) (100,898)
- -----------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $22,507,644 $13,370,282 $29,112,226 $2,599,364
===========================================================================================================
The tax components of undistributed net investment income and net realized gains
at June 30, 2003, the Funds' last fiscal year end, were as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ---------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income $4,269,443 $3,761,927 $3,479,482 $30,133
Undistributed net ordinary income * 212,386 266,129 328,384 17,935
Undistributed net long-term capital gains 3,288,083 1,901,716 1,247,778 --
=========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the fiscal year ended June 30,
2003, the Funds' last fiscal year end, was designated for purposes of the
dividends paid deduction as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $17,151,125 $15,182,483 $14,483,420 $1,518,559
Distributions from net ordinary income * 271,066 62,185 -- --
Distributions from net long-term capital gains 2,068,358 2,736,853 140,796 --
=========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
36
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' (excluding Insured Florida Tax-Free Advantage (NWF)) investment
management agreements with the Adviser, each Fund pays an annual management fee,
payable monthly, at the rates set forth below, which are based upon the average
daily net assets (including net assets attributable to Preferred shares) of each
Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
- --------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
Under Insured Florida Tax-Free Advantage's (NWF) investment management agreement
with the Adviser, the Fund pays an annual management fee, payable monthly, at
the rates set forth below, which are based upon the average daily net assets
(including net assets attributable to Preferred shares) of the Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
- --------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For net assets over $2 billion .5750
================================================================================
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates.
For the first eight years of Insured Florida Tax-Free Advantage's (NWF)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets (including net assets attributable to Preferred
shares), for fees and expenses in the amounts and for the time periods set forth
below:
YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
- --------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured Florida Tax-Free Advantage (NWF)
for any portion of its fees and expenses beyond November 30, 2010.
6. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on February 2, 2004, to shareholders of record
on January 15, 2004, as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- --------------------------------------------------------------------------------
Dividend per share $.0845 $.0830 $.0800 $.0720
================================================================================
37
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
---------------------------------------------------------------- ---------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
FLORIDA INVESTMENT
QUALITY (NQF)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(b) $15.87 $ .54 $ (.18) $(.02) $(.01) $ .33 $ (.50) $(.20) $ (.70)
2003 15.19 1.10 .76 (.07) (.01) 1.78 (.97) (.13) (1.10)
2002 14.76 1.13 .41 (.11) (.02) 1.41 (.92) (.06) (.98)
2001 14.24 1.19 .52 (.30) -- 1.41 (.89) -- (.89)
2000 15.03 1.21 (.71) (.29) (.01) .20 (.94) (.03) (.97)
1999 15.66 1.16 (.59) (.20) (.01) .36 (.96) (.03) (.99)
FLORIDA QUALITY
INCOME (NUF)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(b) 15.75 .54 (.12) (.02) (.01) .39 (.50) (.14) (.64)
2003 15.23 1.08 .71 (.07) (.02) 1.70 (1.00) (.18) (1.18)
2002 15.02 1.18 .14 (.12) (.01) 1.19 (.94) (.04) (.98)
2001 14.57 1.20 .43 (.30) -- 1.33 (.88) -- (.88)
2000 15.37 1.19 (.77) (.29) -- .13 (.91) -- (.91)
1999 15.96 1.14 (.61) (.22) -- .31 (.90) -- (.90)
INSURED FLORIDA
PREMIUM INCOME (NFL)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(b) 16.57 .52 (.10) (.02) (.01) .39 (.48) (.10) (.58)
2003 15.66 1.04 .89 (.08) -- 1.85 (.93) (.01) (.94)
2002 15.30 1.07 .27 (.12) -- 1.22 (.86) -- (.86)
2001 14.25 1.09 1.02 (.28) -- 1.83 (.78) -- (.78)
2000 14.86 1.06 (.59) (.28) -- .19 (.80) -- (.80)
1999 15.49 1.03 (.67) (.23) -- .13 (.76) -- (.76)
INSURED FLORIDA
TAX-FREE ADVANTAGE (NWF)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(b) 14.75 .47 (.22) (.03) -- .22 (.43) -- (.43)
2003(a) 14.33 .40 .70 (.03) -- 1.07 (.43) -- (.43)
====================================================================================================================================
Total Returns
--------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
=====================================================================================
FLORIDA INVESTMENT
QUALITY (NQF)
- -------------------------------------------------------------------------------------
Year Ended 6/30:
2004(b) $ -- $15.50 $16.6000 3.52% 2.20%
2003 -- 15.87 16.7500 13.28 12.02
2002 -- 15.19 15.8300 13.27 9.77
2001 -- 14.76 14.8900 12.03 10.11
2000 (.02) 14.24 14.1250 (5.54) 1.39
1999 -- 15.03 16.0000 (1.80) 2.22
FLORIDA QUALITY
INCOME (NUF)
- -------------------------------------------------------------------------------------
Year Ended 6/30:
2004(b) -- 15.50 16.2000 1.65 2.61
2003 -- 15.75 16.6000 11.56 11.45
2002 -- 15.23 15.9900 13.80 8.15
2001 -- 15.02 14.9700 12.58 9.37
2000 (.02) 14.57 14.1250 (4.28) .87
1999 -- 15.37 15.7500 2.79 1.88
INSURED FLORIDA
PREMIUM INCOME (NFL)
- -------------------------------------------------------------------------------------
Year Ended 6/30:
2004(b) -- 16.38 17.1400 3.10 2.45
2003 -- 16.57 17.2200 16.05 12.10
2002 -- 15.66 15.7100 14.29 8.13
2001 -- 15.30 14.5400 18.32 13.09
2000 -- 14.25 13.0000 (5.17) 1.47
1999 -- 14.86 14.5625 7.98 .73
INSURED FLORIDA
TAX-FREE ADVANTAGE (NWF)
- -------------------------------------------------------------------------------------
Year Ended 6/30:
2004(b) -- 14.54 15.4600 .23 1.58
2003(a) (.22) 14.75 15.8700 8.82 6.08
=====================================================================================
Ratios/Supplemental Data
----------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
------------------------------ ------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
===================================================================================================================
FLORIDA INVESTMENT
QUALITY (NQF)
- -------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(b) $256,009 1.25%* 6.99%* 1.24%* 6.99%* 6%
2003 261,856 1.20 7.00 1.19 7.01 16
2002 249,833 1.26 7.53 1.23 7.56 34
2001 242,223 1.33 8.10 1.29 8.14 28
2000 233,290 1.26 8.45 1.24 8.48 16
1999 245,644 1.15 7.38 1.15 7.39 17
FLORIDA QUALITY
INCOME (NUF)
- -------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(b) 221,054 1.25* 6.98* 1.25* 6.99* 9
2003 224,311 1.24 6.92 1.23 6.94 28
2002 216,044 1.28 7.81 1.26 7.83 30
2001 212,618 1.33 8.00 1.25 8.08 20
2000 206,212 1.26 8.08 1.23 8.10 20
1999 217,433 1.19 7.13 1.19 7.13 16
INSURED FLORIDA
PREMIUM INCOME (NFL)
- -------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(b) 235,061 1.16* 6.38* 1.16* 6.38* 13
2003 237,490 1.18 6.41 1.16 6.42 14
2002 223,961 1.21 6.89 1.21 6.89 8
2001 218,642 1.27 7.22 1.26 7.23 20
2000 203,591 1.30 7.53 1.29 7.54 22
1999 212,428 1.20 6.58 1.20 6.58 11
INSURED FLORIDA
TAX-FREE ADVANTAGE (NWF)
- -------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(b) 56,415 1.26* 6.04* .73* 6.57* 90
2003(a) 57,223 1.15* 4.18* .67* 4.66* 46
===================================================================================================================
Preferred Shares at End of Period
------------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
==================================================================
FLORIDA INVESTMENT
QUALITY (NQF)
- ------------------------------------------------------------------
Year Ended 6/30:
2004(b) $132,000 $25,000 $73,487
2003 132,000 25,000 74,594
2002 132,000 25,000 72,317
2001 132,000 25,000 70,876
2000 132,000 25,000 69,184
1999 110,000 25,000 80,828
FLORIDA QUALITY
INCOME (NUF)
- ------------------------------------------------------------------
Year Ended 6/30:
2004(b) 117,000 25,000 72,234
2003 117,000 25,000 72,930
2002 117,000 25,000 71,163
2001 117,000 25,000 70,431
2000 117,000 25,000 69,062
1999 105,000 25,000 76,770
INSURED FLORIDA
PREMIUM INCOME (NFL)
- ------------------------------------------------------------------
Year Ended 6/30:
2004(b) 111,000 25,000 77,942
2003 111,000 25,000 78,489
2002 111,000 25,000 75,442
2001 111,000 25,000 74,244
2000 111,000 25,000 70,854
1999 111,000 25,000 72,844
INSURED FLORIDA
TAX-FREE ADVANTAGE (NWF)
- ------------------------------------------------------------------
Year Ended 6/30:
2004(b) 29,000 25,000 73,633
2003(a) 29,000 25,000 74,330
==================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income at net asset value,
reinvested capital gains distributions at net asset value, if any, and
changes in Common share net asset value per share. Total returns are not
annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares, where applicable.
(a) For the period November 21, 2002 (commencement of operations) through June
30, 2003.
(b) For the six months ended December 31, 2003.
See accompanying notes to financial statements.
38-39 spread
Build Your Wealth
AUTOMATICALLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
40
Fund
INFORMATION
BOARD OF TRUSTEES
William E. Bennett
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
Anne E. Impellizzeri
William L. Kissick
Thomas E. Leafstrand
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Sheila W. Wellington
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman andCutler LLP
Chicago, IL
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling Nuveen Investments at (800) 257-8787; and (ii)
on the Commission's website at http://www.sec.gov.
GLOSSARY OF TERMS USED IN THIS REPORT
Average Annual Total Return: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
Average Effective Maturity: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
Leverage-Adjusted Duration: Duration is a measure of a bond or bond fund's
sensitivity to changes in interest rates. Generally, the longer a bond or fund's
duration, the more the price of the bond or fund will change as interest rates
change. Leverage-adjusted duration takes into account the leveraging process for
a Fund and therefore is generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund.
Market Yield (also known as Dividend Yield or Current Yield): An investment's
current annualized dividend divided by its current market price.
Net Asset Value (NAV): A fund's NAV is calculated by subtracting the liabilities
of the fund from its total assets and then dividing the remainder by the number
of shares outstanding. Fund NAVs are calculated at the end of each business day.
Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
- ---------
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the six-month period ended December 31, 2003. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
41
Serving Investors
FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
Managing $80 billion in assets, Nuveen Investments offers access to a number of
different asset classes and investing solutions through a variety of products.
Nuveen Investments markets its capabilities under four distinct brands: Nuveen,
a leader in tax-free investments; NWQ, a leader in value-style equities;
Rittenhouse, a leader in growth-style equities; and Symphony, a leading
institutional manager of market-neutral alternative investment portfolios.
To learn more about the products and services Nuveen Investments offers and for
a prospectus, where applicable, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information carefully before you invest.
Distributed by
NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606
| www.nuveen.com
ESA-A-1203D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable to this filing.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable at this time.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable at this time.
ITEM 10. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's last
fiscal half-year (the registrant's second fiscal half-year in the case
of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because posted on registrant's website at www.nuveen.com/etf.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable
at this time.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Insured Florida Tax-Free Advantage Municipal Fund
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: March 9, 2004
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(Principal Executive Officer)
Date: March 9, 2004
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date: March 9, 2004
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.