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 --------------------- 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 - ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Jessica R. Droeger Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 - ------------------------------------------------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: (312) 917-7700 ------------------- Date of fiscal year end: June 30 ------------------ Date of reporting period: December 31 ------------------ 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). - -------------------------------------------------------------------------------- SOME COMMON CONCERNS: WILL MY E-MAIL ADDRESS BE DISTRIBUTED TO OTHER COMPANIES? No, your e-mail address is strictly confidential and will not be used for anything other than notification of shareholder information. WHAT IF I CHANGE MY MIND AND WANT TO RECEIVE INVESTOR MATERIALS THROUGH REGULAR MAIL DELIVERY AGAIN? If you decide you do not like receiving your reports electronically, it's a simple process to go back to regular mail delivery. - -------------------------------------------------------------------------------- IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT, FOLLOW THE STEPS OUTLINED BELOW: 1 Go to WWW.INVESTORDELIVERY.COM 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 - --------------------------------------------------------------------- 1 YEAR 1 YEAR 1 YEAR TAXABLE- ENDED ENDED ENDED 12/31/03 EQUIVALENT3 12/31/03 12/31/03 12/31/03 - --------------------------------------------------------------------- NQF 6.11% 8.49% 6.70% 5.31% 7.26% - --------------------------------------------------------------------- NUF 6.15% 8.54% 6.99% 5.31% 7.26% - --------------------------------------------------------------------- NFL 5.60% 7.78% 7.16% 5.65% 7.26% - --------------------------------------------------------------------- NWF 5.59% 7.76% 6.57% 5.65% 7.26% - --------------------------------------------------------------------- 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 - -------------------------------------------------- Share Price $16.60 - -------------------------------------------------- Common Share Net Asset Value $15.50 - -------------------------------------------------- Premium/(Discount) to NAV 7.10% - -------------------------------------------------- Market Yield 6.11% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.49% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $256,009 - -------------------------------------------------- Average Effective Maturity (Years) 20.54 - -------------------------------------------------- Leverage-Adjusted Duration 9.76 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 2/21/91) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 12.01% 6.70% - -------------------------------------------------- 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.