UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21215
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Nuveen Insured Florida Tax-Free Advantage Municipal Fund
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------
(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
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Date of fiscal year end: June 30
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Date of reporting period: June 30, 2004
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
ANNUAL REPORT June 30, 2004
Nuveen Investments
Municipal Closed-End
Exchange-Traded
Funds
NUVEEN FLORIDA INVESTMENT QUALITY MUNICIPAL FUND
NQF
NUVEEN FLORIDA QUALITY INCOME MUNICIPAL FUND
NUF
NUVEEN INSURED FLORIDA PREMIUM INCOME MUNICIPAL FUND
NFL
NUVEEN INSURED FLORIDA TAX-FREE ADVANTAGE MUNICIPAL FUND
NWF
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DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU
KEEP.(R)
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Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
I am very pleased to report that for the period ended June 30, 2004, your
Nuveen Fund continued to provide you with attractive monthly tax-free
income.
While tax-free income is always welcome, we know that many shareholders are
beginning to wonder whether interest rates will rise significantly, and
whether that possibility should cause them to adjust that portion of their
investment portfolios allocated to tax-free municipal bonds. We believe
this is a question you should consider carefully with the help of a trusted
financial advisor. In many cases, it may be more appropriate to focus on
long-term goals and objectives rather than shorter-term market movements,
and this is where a professional advisor may be able to help keep you
focused on the larger objectives of your investment program.
WE THINK THAT MUNICIPAL BOND INVESTMENTS LIKE YOUR NUVEEN FUND CAN BE IMPORTANT
BUILDING BLOCKS IN A WELL-BALANCED PORTFOLIO.
As you read through this report, please review the inside front cover and
consider receiving future Fund reports and other Fund information by e-mail
and the Internet. Not only will you be able to receive the information
faster, but this also may help lower your Fund's expenses. Sign up is quick
and easy.
Since 1898, Nuveen Investments has offered financial products and solutions
that incorporate careful research, diversification and the application of
conservative risk-management principles. We are grateful that you have
chosen us as a partner as you pursue your financial goals. We look forward
to continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
August 16, 2004
Nuveen Florida Municipal Closed-End Exchange-Traded Funds
(NQF, NUF, NFL, NWF)
Portfolio Manager's
PERSPECTIVE
Portfolio manager Dan Solender reviews the market environment, key investment
strategies, and the annual performance of these four Nuveen Florida Funds. With
twelve years of investment experience, including eight at Nuveen, Dan assumed
portfolio management responsibility for NQF and NUF in November 2003, and added
NFL and NWF in May 2004.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE ANNUAL
REPORTING PERIOD ENDED JUNE 30, 2004?
During this reporting period, the U.S. economy demonstrated growing evidence of
improvement in a number of key areas. Inflation also showed signs of
acceleration, driven largely by higher energy and transportation costs, with the
Consumer Price Index rising at a 4.9% rate (annualized) during the first six
months of 2004, compared with 1.9% for all of 2003. The combination of inflation
concerns and economic momentum, especially a series of sharply improved jobs
reports, served as a catalyst for heightened volatility across the fixed-income
markets. During the final three months of this reporting period, the bond
markets, including the municipal market, were increasingly driven by
expectations that the Federal Reserve would raise interest rates and by
speculation over the timing and extent of those rate hikes. On June 30, 2004,
the Fed increased the fed funds rate by 0.25% to 1.25%, the first increase in
four years, noting that it anticipated taking a "measured" approach to further
tightening to avoid potential derailment of the economic recovery.
Although the market environment was generally favorable for municipal bonds
during much of the 12-month period ended June 30, 2004, the bond market rally of
late 2003-early 2004 was bracketed by periods of sharp price declines and yield
increases. As one example of this volatility, the yield on the Bond Buyer 25
Revenue Bond Index (BB25), a widely followed municipal bond index, rose more
than 50 basis points between April 1 and June 10, 2004, before retreating
slightly during the final three weeks of this period. Overall, the trend during
this 12-month period was toward higher yields, with the BB25 Index ending June
2004 almost 40 basis points higher than it was at the beginning of July 2003.
In general, municipal supply nationwide remained relatively strong over the
entire 12-month reporting period, as $372 billion in new bonds came to market,
down 5% from the preceding 12-month period. However, the pace of issuance slowed
in recent months, with $188 billion in new municipal supply during the first
half of 2004, a decrease of
4
almost 9% from January-June 2003's record level. In contrast to 2003, when many
states were issuing bonds to bridge budget gaps and fund operations, an
improving economy and higher tax revenues have lessened the states' need to
borrow. In June 2004 alone, volume decreased 24% from a year ago.
HOW ABOUT ECONOMIC AND MARKET CONDITIONS IN FLORIDA?
During this 12-month reporting period, Florida's service-based economy continued
to benefit from solid growth and strong employment performance. Business and
financial services, tourism, and healthcare took the lead in job growth, as
unemployment in the state fell from 5.3% in June 2003 to 4.7% in June 2004,
below the current national average of 5.6%. Rapid population growth provided
additional strength to the Florida economy, although such growth also increases
the challenges for long-term economic development. As of the time of this
report, Florida was expected to close fiscal 2004 with a $2.2 billion general
revenue and working capital reserve, in addition to a fully funded budget
stabilization fund. For fiscal 2005, the state's $24.3 billion budget includes
major spending in the areas of education and human services. In November 2003,
Florida voters approved measures requiring the state to reduce the number of
children per classroom, offer free universal pre-kindergarten, and commit to
developing high-speed rail services. While Florida's general revenue performance
continued to be strong, with 7% growth in fiscal 2004, the lack of a personal
income tax and the push to phase out the state's intangible tax meant Florida's
revenue base remained narrow, with sales taxes providing 75% of all revenues.
During the 12-month reporting period ended June 2004, Florida issuers brought
$15.4 billion in new municipal bonds to market, down 26% from the previous
12-month period. For the first six months of 2004, issuance tightened even
further, as supply totaled $6.1 billion, off 49% from January-June 2003 levels.
As of June 30, 2004, Florida debt continued to be rated Aa2 by Moody's and AA+
by Standard & Poor's, with stable outlooks from both credit agencies.
5
IN THIS ENVIRONMENT, WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING
THE 12 MONTHS ENDED JUNE 30, 2004?
Our major focus during this reporting period remained on trying to structure the
Funds so that they all achieved risk/return profiles to the Florida market
generally. When this process is completed, we believe the Funds will be better
positioned to produce more consistent returns on net asset value over time as
interest rates rise and fall. Of course, share prices and total return on share
price over time will be impacted by a variety of factors in addition to
movements of the Fund's net asset values.
As noted earlier, municipal issuance in Florida dropped off sharply during the
12-month period, particularly in the first half of 2004. While this meant that
it occasionally took longer to make some portfolio adjustments, the total amount
of supply remained reasonable and we continued to find opportunities that we
believed added value.
The core of our purchase activity focused on attractive securities with
defensive structures in the long-intermediate part of the yield curve (i.e.,
bonds that mature in 15 to 20 years). In many cases, bonds in this part of the
curve offered yields similar to those of longer-term bonds with less inherent
interest rate risk and greater total return potential. Among the bonds we
purchased were several that were trading at premiums to their redemption prices.
These higher-coupon bonds may help us to mitigate some of the Funds' risk if
interest rates continue to rise. Some of the additions to our portfolios were
financed through the sale of bonds with longer maturities (i.e., 30 years).
In addition to improving and standardizing the Funds' yield curve positioning,
we also sought to reduce the size of some lower-investment-grade rated holdings
in NQF and NUF, the uninsured Funds. Given the supply available at the time
these trades were completed, we tended to purchase higher-rated securities.
During this period, most of the high-quality issuance in Florida came from the
limited tax obligation sector, and we increased our allocations to this sector
in each of the Funds.
HOW DID THE FUNDS PERFORM?
Individual results for the Nuveen Florida Funds, as well as for relevant
benchmarks, are presented in the accompanying table.
6
TOTAL RETURNS ON NET ASSET VALUE
For periods ended 6/30/04
(Annualized)
1-YEAR 5-YEAR 10-YEAR
- --------------------------------------------------------------------
NQF 0.95% 6.74% 6.66%
- --------------------------------------------------------------------
NUF 1.29% 6.14% 6.61%
- --------------------------------------------------------------------
Lehman Brothers
Municipal
Bond Index2 0.76% 5.87% 6.44%
- --------------------------------------------------------------------
INSURED FLORIDA FUNDS
- --------------------------------------------------------------------
NFL 0.46% 6.92% 7.56%
- --------------------------------------------------------------------
NWF -0.79% NA NA
- --------------------------------------------------------------------
Lehman Brothers
Insured Municipal
Bond Index2 0.43% 6.15% 6.65%
- --------------------------------------------------------------------
Lipper Florida
Municipal Debt
Funds average3 0.22% 6.51% 6.94%
- --------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
For NFL and NWF, the insurance applies only to the bonds in the Funds'
portfolios, and does not guarantee the value or price of the Funds' shares.
There can be no assurance as to the ability of any insurer to meet its
commitments.
For the 12 months ended June 30, 2004, the total returns on net asset value
(NAV) for NQF and NUF exceeded the return of the Lehman Brothers index. NFL
outperformed the Lehman Brothers Insured index, while NWF lagged this measure.
NQF, NUF and NFL also outperformed their Lipper Florida peer group, while NWF
trailed the Lipper average.
Structure (including duration1), credit quality, and sector allocation were the
primary factors affecting the 12-month performance of these four Funds. As
previously mentioned, yields rose sharply during the second quarter of 2004 and
bond prices fell, impacting the Funds' total returns. In general, the longer a
Fund's duration, the more its value was affected by the changes in prevailing
interest rates. NWF, which was introduced in November 2002, had the longest
duration of any Fund in this report as of June 30, 2004. This was not
surprising; recently invested Funds often tend to have longer durations, and,
initially, the duration of NWF was intentionally kept longer to provide
additional support for its income stream. As a result, the recent rise in yields
had a greater impact on the total return of NWF.
1 Duration is a measure of a Fund's net asset value (NAV) volatility in
reaction to interest rate movements. Fund duration, also known as
leverage-adjusted duration, takes into account the leveraging process for a
Fund and therefore is generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund. References to duration
in this commentary are intended to indicate Fund duration unless otherwise
noted.
2 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds, while the Lehman Brothers Insured Municipal Bond Index is an
unleveraged, unmanaged national index consisting of a broad range of
insured municipal bonds. Results for the Lehman indexes do not reflect any
expenses.
3 The Lipper Florida Municipal Debt Funds category average is calculated
using the returns of all closed-end exchange-traded funds in this category
for each period as follows: 1 year, 17 Funds; 5 years, 12 Funds; and 10
years, 10 Funds. Fund and Lipper returns assume reinvestment of dividends.
7
On the positive side, the noninsured Funds' performances benefited from their
weightings of lower-rated bonds, which outperformed other credit quality sectors
as the economy improved, investors' risk tolerance increased, and credit spreads
tightened. As of June 30, 2004, NQF and NUF had allocations of BBB and non-rated
bonds of 13% each. (As insured Funds, NFL was 100% invested in insured bonds,
and NWF, which is allowed to invest up to 20% of its portfolio in uninsured
investment-grade securities, held no BBB or non-rated bonds.)
The Funds' allocations to the housing sector, especially multifamily housing,
also made a positive contribution to their total returns, as this sector
performed well when interest rates began to rise. Among these four Funds, NUF
had the heaviest weighting of multifamily housing bonds, at 11% of its
portfolio, followed by NFL with 10% and NQF with 7%, while NWF had no securities
invested in this sector as of June 30, 2004.
The healthcare sector, in particular lower-rated hospital debt, was also a
strong performer over the 12 months, and as of June 30, 2004, all four Funds had
healthy allocations to this sector, ranging from 16% in NUF to 13% in NQF, 11%
in NWF and 9% in NFL. Both NQF and NUF, for example, held positions in Baa1
bonds issued for Tampa General Hospital, which helped to boost their
performance.
HOW ABOUT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With short-term interest rates remaining at historically low levels during this
reporting period, the leveraged structures of these four Funds continued to
support their dividend-paying capabilities. The extent of this benefit is tied
in part to the short-term rates the Funds pay their MuniPreferred(R)
shareholders. During periods of low short-term rates, the Funds generally pay
relatively lower dividends to their MuniPreferred shareholders, which can leave
more earnings to support common share dividends. During this reporting period,
this strategy enabled us to increase the dividends of NQF and NFL, while helping
to maintain the dividends of NUF and NWF throughout the period. In addition, due
to capital gains generated by trading activity as part of our duration
management efforts, common shareholders of NQF, NUF and NFL received substantial
capital gains and net ordinary income distributions of $0.1984, $0.1432 and
$0.1020 per share, respectively, at the end of December 2003.
8
All of these Funds seek to pay stable dividends at rates that reflect each
Fund's past results and projected future performance. During certain periods,
each Fund may pay dividends at a rate that may be more or less than the amount
of net investment income actually earned by the Fund during the period. If a
Fund has cumulatively earned more than it has paid in dividends, it holds the
excess in reserve as undistributed net investment income (UNII) as part of the
Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of
its earnings, the excess constitutes negative UNII that is likewise reflected in
the Fund's NAV. Each Fund will, over time, pay all of its net investment income
as dividends to shareholders. As of June 30, 2004, all of the Funds in this
report except NWF had positive UNII balances.
As of June 30, 2004, each of these Funds were trading at a discount to its net
asset value, and each was trading at a larger discount than its average premium
or discount over the course of the 12-month reporting period.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
JUNE 30, 2004?
Given the current geopolitical and economic climate, we continued to believe
that maintaining strong credit quality was an important requirement. As of the
end of June 2004, NQF and NUF continued to offer excellent credit quality, with
allocations of bonds rated AAA/U.S. guaranteed and AA at 77% and 74%,
respectively. NFL continued to be 100% invested in insured and/or U.S.
guaranteed securities. NWF, which is allowed to invest up to 20% in uninsured
investment-grade quality securities, held 87% of its portfolio in insured bonds
as of June 30, 2004.
As of the end of June 2004, potential call exposure for these Funds during
2004-2005 ranged from zero in NWF to 2% in NUF, 3% in NQF and 9% in NFL. The
number of actual bond calls in all of the Funds will depend largely on market
interest rates.
9
Nuveen Florida Investment Quality Municipal Fund
NQF
Performance
OVERVIEW As of June 30, 2004
FUND SNAPSHOT
- ------------------------------------
Share Price $14.03
- ------------------------------------
Common Share
Net Asset Value $14.81
- ------------------------------------
Premium/(Discount) to NAV -5.27%
- ------------------------------------
Market Yield 7.23%
- ------------------------------------
Taxable-Equivalent Yield1 10.04%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $245,045
- ------------------------------------
Average Effective
Maturity (Years) 19.20
- ------------------------------------
Leverage-Adjusted Duration 10.99
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
1-Year -9.61% 0.95%
- ------------------------------------
5-Year 4.18% 6.74%
- ------------------------------------
10-Year 5.85% 6.66%
- ------------------------------------
TOP FIVE SECTORS
(as a % of total investments)
- ------------------------------------
Tax Obligation/Limited 22%
- ------------------------------------
Healthcare 13%
- ------------------------------------
Transportation 13%
- ------------------------------------
U.S. Guaranteed 10%
- ------------------------------------
Utilities 9%
- ------------------------------------
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 65%
AA 12%
A 10%
BBB 4%
NR 9%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.0835
Aug 0.0835
Sep 0.0835
Oct 0.0835
Nov 0.0835
Dec 0.0845
Jan 0.0845
Feb 0.0845
Mar 0.0845
Apr 0.0845
May 0.0845
Jun 0.0845
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/03 16.89
16.98
16.95
16.36
14.56
15.1
14.96
14.74
14.83
15.28
15.35
15.36
15.44
15.88
15.73
15.83
15.95
15.85
16.33
16.35
16.61
16.52
16.41
16.5
16.77
17.23
16.95
16.82
16.74
16.72
16.98
16.95
16.86
16.84
16.8
16.84
16.88
16.01
15.1
14.93
14.27
13.98
13.99
14.2
14.43
14.46
14.42
14.01
14.13
6/30/04 14.03
1 Taxable equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. For
investments that generate qualified dividend income, the taxable equivalent
yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.1984 per share.
10
Nuveen Florida Quality Income Municipal Fund
NUF
Performance
OVERVIEW As of June 30, 2004
FUND SNAPSHOT
- ------------------------------------
Share Price $13.84
- ------------------------------------
Common Share
Net Asset Value $14.81
- ------------------------------------
Premium/(Discount) to NAV -6.55%
- ------------------------------------
Market Yield 7.20%
- ------------------------------------
Taxable-Equivalent Yield1 10.00%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $211,659
- ------------------------------------
Average Effective
Maturity (Years) 19.31
- ------------------------------------
Leverage-Adjusted Duration 11.12
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/17/91)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
1-Year -10.29% 1.29%
- ------------------------------------
5-Year 4.19% 6.14%
- ------------------------------------
10-Year 6.41% 6.61%
- ------------------------------------
TOP FIVE SECTORS
(as a % of total investments)
- ------------------------------------
Tax Obligation/Limited 21%
- ------------------------------------
Healthcare 16%
- ------------------------------------
Transportation 12%
- ------------------------------------
Housing/Multifamily 11%
- ------------------------------------
Utilities 10%
- ------------------------------------
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 60%
AA 14%
A 13%
BBB 5%
NR 8%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.083
Aug 0.083
Sep 0.083
Oct 0.083
Nov 0.083
Dec 0.083
Jan 0.083
Feb 0.083
Mar 0.083
Apr 0.083
May 0.083
Jun 0.083
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/03 16.43
17.01
16.68
16.18
14.43
15.12
14.5
14.72
14.77
14.85
15.08
15.31
15.42
15.39
15.55
15.63
15.65
15.75
15.98
16.01
16.29
16.41
16.08
16.22
16.69
16.9
16.61
16.64
16.52
16.54
16.4
16.58
16.74
16.89
16.58
16.7
16.29
15.46
15.35
14.63
14.25
13.55
13.68
14.02
14.18
14.17
14.1
13.9
13.77
6/30/04 13.84
1 Taxable equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. For
investments that generate qualified dividend income, the taxable equivalent
yield is lower.
2 The Fund also paid shareholders a capital gains and net ordinary income
distribution in December 2003 of $0.1432 per share.
11
Nuveen Insured Florida Premium Income Municipal Fund
NFL
Performance
OVERVIEW As of June 30, 2004
FUND SNAPSHOT
- ------------------------------------
Share Price $14.24
- ------------------------------------
Common Share
Net Asset Value $15.59
- ------------------------------------
Premium/(Discount) to NAV -8.66%
- ------------------------------------
Market Yield 6.74%
- ------------------------------------
Taxable-Equivalent Yield1 9.36%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $223,965
- ------------------------------------
Average Effective
Maturity (Years) 16.92
- ------------------------------------
Leverage-Adjusted Duration 8.85
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/17/92)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
1-Year -11.70% 0.46%
- ------------------------------------
5-Year 5.62% 6.92%
- ------------------------------------
10-Year 7.02% 7.56%
- ------------------------------------
TOP FIVE SECTORS
(as a % of total investments)
- ------------------------------------
Tax Obligation/Limited 30%
- ------------------------------------
Water and Sewer 20%
- ------------------------------------
U.S. Guaranteed 12%
- ------------------------------------
Transportation 12%
- ------------------------------------
Housing/Multifamily 10%
- ------------------------------------
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 88%
Insured and U.S. Guaranteed 12%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.079
Aug 0.079
Sep 0.079
Oct 0.079
Nov 0.079
Dec 0.08
Jan 0.08
Feb 0.08
Mar 0.08
Apr 0.08
May 0.08
Jun 0.08
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/03 17.35
17.3
17.12
16.5
14.95
15.65
15.73
15.3
15.19
15.35
15.36
15.85
15.82
16.19
16.01
16.08
16.51
16.61
16.85
16.7
16.81
16.66
17.03
16.83
17.08
17.16
17.31
17.05
17
16.85
16.84
16.7
16.95
16.78
16.97
16.79
16.5
15.75
15.37
14.95
14.88
14.37
14.13
14.4
14.68
14.62
14.71
14.1
14.17
6/30/04 14.24
1 Taxable equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. For
investments that generate qualified dividend income, the taxable equivalent
yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.1020 per share.
12
Nuveen Insured Florida Tax Free Advantage Municipal Fund
NWF
Performance
OVERVIEW As of June 30, 2004
FUND SNAPSHOT
- ------------------------------------
Share Price $12.94
- ------------------------------------
Common Share
Net Asset Value $13.78
- ------------------------------------
Premium/(Discount) to NAV -6.10%
- ------------------------------------
Market Yield 6.68%
- ------------------------------------
Taxable-Equivalent Yield1 9.28%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $53,504
- ------------------------------------
Average Effective
Maturity (Years) 20.16
- ------------------------------------
Leverage-Adjusted Duration 12.86
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/21/02)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
1-Year -13.56% -0.79%
- ------------------------------------
Since Inception-3.74% 3.23%
- ------------------------------------
TOP FIVE SECTORS
(as a % of total investments)
- ------------------------------------
Tax Obligation/Limited 51%
- ------------------------------------
Water and Sewer 13%
- ------------------------------------
Healthcare 11%
- ------------------------------------
Education and Civic Organizations 8%
- ------------------------------------
Transportation 7%
- ------------------------------------
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 87%
AAA (uninsured) 2%
AA (uninsured) 2%
A (uninsured) 9%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jul 0.072
Aug 0.072
Sep 0.072
Oct 0.072
Nov 0.072
Dec 0.072
Jan 0.072
Feb 0.072
Mar 0.072
Apr 0.072
May 0.072
Jun 0.072
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/03 15.77
16.29
16.5
15.79
15
15.56
15.2
14.77
15.11
15.02
15.22
15.19
15.49
15.24
14.95
15
14.94
15.08
15.22
15.21
15.15
15.21
15.37
15.46
16.06
15.74
15.95
15.8
15.9
15.86
15.91
15.82
15.98
15.98
16.03
15.86
15.45
14.78
14
13.43
13.24
13.01
12.49
12.73
13.3
13.34
13.05
12.96
13.09
6/30/04 12.94
1 Taxable equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. For
investments that generate qualified dividend income, the taxable equivalent
yield is lower.
13
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
THE BOARDS OF TRUSTEES AND SHAREHOLDERS
NUVEEN FLORIDA INVESTMENT QUALITY MUNICIPAL FUND
NUVEEN FLORIDA QUALITY INCOME MUNICIPAL FUND
NUVEEN INSURED FLORIDA PREMIUM INCOME MUNICIPAL FUND
NUVEEN INSURED FLORIDA TAX-FREE ADVANTAGE MUNICIPAL FUND
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen Florida Investment Quality Municipal
Fund, Nuveen Florida Quality Income Municipal Fund, Nuveen Insured Florida
Premium Income Municipal Fund, and Nuveen Insured Florida Tax-Free Advantage
Municipal Fund as of June 30, 2004, and the related statements of operations,
changes in net assets and the financial highlights for the periods indicated
therein. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements and financial highlights. Our procedures
included confirmation of securities owned as of June 30, 2004, by correspondence
with the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Florida Investment Quality Municipal Fund, Nuveen Florida Quality Income
Municipal Fund, Nuveen Insured Florida Premium Income Municipal Fund, and Nuveen
Insured Florida Tax-Free Advantage Municipal Fund at June 30, 2004 and the
results of their operations, changes in their net assets and their financial
highlights for the periods indicated therein in conformity with U.S. generally
accepted accounting principles.
/s/Ernst & Young LLP
Chicago, Illinois
August 13, 2004
14
Nuveen Florida Investment Quality Municipal Fund (NQF)
Portfolio of
INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.7%
$ 5,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 4,060,950
Asset-Backed Refunding Bonds, Series 2002, 5.500%, 5/15/39
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 3.7%
1,295 Broward County Educational Facilities Authority, Florida, 4/14 at 100.00 AAA 1,393,679
Revenue Bonds, Nova Southeastern University, Series 2004A,
5.250%, 4/01/16 - AMBAC Insured
2,000 Broward County Educational Facilities Authority, Florida, 4/14 at 100.00 BBB 2,003,220
Revenue Bonds, Nova Southeastern University, Series 2004B,
5.625%, 4/01/34
3,000 Florida, Board of Education Lottery Revenue Bonds, 1/13 at 101.00 AAA 3,199,770
Series 2002C, 5.000%, 1/01/15 - MBIA Insured
2,290 Miami-Dade County Educational Facilities Authority, Florida, 4/14 at 100.00 AAA 2,369,371
Revenue Bonds, University of Miami, Series 2004A,
5.000%, 4/01/19 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 19.4%
4,600 Highlands County Health Facilities Authority, Florida, Hospital 11/11 at 101.00 A 4,757,872
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2001A, 6.000%, 11/15/31
Hillsborough County Industrial Development Authority, Florida,
Hospital Revenue Bonds, Tampa General Hospital, Series 2003B:
1,000 5.250%, 10/01/28 10/13 at 100.00 Baa1 955,700
2,330 5.250%, 10/01/34 10/13 at 100.00 Baa1 2,208,630
2,345 Leesburg, Florida, Hospital Revenue Bonds, Leesburg Regional 7/12 at 100.00 A 2,318,361
Medical Center Project, Series 2002, 5.375%, 7/01/22
3,000 Miami-Dade County Health Facilities Authority, Florida, 8/11 at 101.00 AAA 3,001,800
Hospital Revenue Refunding Bonds, Miami Children's Hospital
Project, Series 2001A, 5.125%, 8/15/26 - AMBAC Insured
6,000 North Broward Hospital District, Florida, Revenue and 1/11 at 101.00 A- 6,207,300
Improvement Bonds, Series 2001, 6.000%, 1/15/31
6,000 Orange County Health Facilities Authority, Florida, Hospital 11/10 at 101.00 A 6,369,240
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2000, 6.500%, 11/15/30
3,695 Orange County Health Facilities Authority, Florida, Hospital 12/12 at 100.00 A 3,775,108
Revenue Bonds, Orlando Regional Healthcare System,
Series 2002, 5.750%, 12/01/27
Palm Beach County Health Facilities Authority, Florida, Hospital
Revenue Refunding Bonds, BRCH Corporation Obligated Group,
Series 2001:
2,500 5.500%, 12/01/21 12/11 at 101.00 A 2,546,225
2,340 5.625%, 12/01/31 12/11 at 101.00 A 2,347,652
7,500 Pinellas County Health Facilities Authority, Florida, Revenue 5/13 at 100.00 A1 7,528,200
Bonds, Baycare Health System, Series 2003, 5.500%, 11/15/33
5,375 South Broward Hospital District, Florida, Hospital Revenue 5/12 at 101.00 Aa3 5,513,729
Bonds, Series 2002, 5.625%, 5/01/32
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 11.4%
10,875 Broward County Housing Finance Authority, Florida, 7/09 at 102.00 N/R 11,745,000
Multifamily Housing Revenue Bonds, Pier Club Apartments
Project, Series 1999, 7.000%, 7/01/34
1,090 Broward County Housing Finance Authority, Florida, 5/10 at 101.00 AAA 1,114,917
Multifamily Housing Revenue Bonds, Emerald Palms
Apartments Project, Series 2001A, 5.600%, 7/01/21
(Alternative Minimum Tax)
590 Florida Housing Finance Agency, General Mortgage Revenue 12/04 at 101.00 AAA 596,478
Refunding Bonds, Series 1992A, 6.400%, 6/01/24
2,500 Florida Housing Finance Agency, Housing Revenue Bonds, 9/06 at 102.00 AAA 2,579,050
Mariner Club Apartments Project, Series 1996K-1,
6.375%, 9/01/36 (Alternative Minimum Tax) - AMBAC Insured
9,940 Florida Housing Finance Corporation, Revenue Bonds, Pembroke 2/16 at 100.00 N/R 8,747,200
Apartments, Series 2001B, 7.750%, 2/01/41
3,050 Florida Housing Finance Corporation, Revenue Bonds, Mission 1/12 at 100.00 AAA 3,097,855
Bay Apartments, Series 2001N, 5.500%, 7/15/29 (Alternative
Minimum Tax)
15
Nuveen Florida Investment Quality Municipal Fund (NQF) (continued)
Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.9%
$ 5,155 Florida Housing Finance Agency, Homeowner Mortgage 1/06 at 102.00 AA $ 5,302,021
Revenue Bonds, Refunding/New Money Issue, Series 1995-2,
6.200%, 7/01/27 (Alternative Minimum Tax)
1,230 Florida Housing Finance Agency, Homeowner Mortgage Revenue 1/07 at 102.00 AA 1,276,506
Bonds, Refunding/New Money Issue, Series 1996-2,
6.350%, 7/01/28 (Alternative Minimum Tax)
2,025 Florida Housing Finance Agency, Homeowner Mortgage 7/07 at 102.00 AAA 2,079,837
Revenue Bonds, Series 1997-2, 5.900%, 7/01/29 (Alternative
Minimum Tax) - MBIA Insured
495 Manatee County Housing Finance Authority, Florida, Single 11/05 at 102.00 Aaa 513,305
Family Mortgage Revenue Bonds, Series 1994 - Subseries 3,
7.600%, 11/01/26 (Alternative Minimum Tax)
450 Housing Finance Authority of Manatee County, Florida, Single 5/06 at 105.00 Aaa 472,806
Family Mortgage Revenue Bonds, Series 1996 - Subseries 1,
7.450%, 5/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 5.6%
13,000 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 13,641,680
Exempt Facilities Revenue Bonds, National Gypsum Company
Apollo Beach Project, Series 2000B, 7.125%, 4/01/30
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.0%
9,230 Florida State Board of Education, Full Faith and Credit, Public 6/11 at 101.00 AAA 9,253,444
Education Capital Outlay Bonds, Series 2001C,
5.125%, 6/01/31 - FGIC Insured
1,500 Florida State Board of Education, Full Faith and Credit Public 6/12 at 101.00 AAA 1,529,685
Education Capital Outlay Bonds, Series 2002F,
5.000%, 6/01/22 - MBIA Insured
2,080 Florida State Board of Education, Full Faith and Credit Public 6/13 at 100.00 AAA 2,136,410
Education Capital Outlay Bonds, Series 2003J,
5.000%, 6/01/21 - AMBAC Insured
8,000 Florida State Board of Education, Full Faith and Credit, Public 6/12 at 100.00 AA+ 8,619,040
Education Capital Outlay Refunding Bonds, Series 2002D,
5.375%, 6/01/16
Reedy Creek Improvement District, Orange and Osceola Counties,
Florida, General Obligation Bonds, Series 2004A:
3,510 5.000%, 6/01/19 - MBIA Insured 4/14 at 100.00 AAA 3,642,854
1,750 5.000%, 6/01/20 - MBIA Insured 4/14 at 100.00 AAA 1,805,090
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 34.2%
Miami-Dade County, Florida, Beacon Tradeport Community
Development District, Special Assessment Bonds, Commercial
Project, Series 2002A:
2,365 5.250%, 5/01/16 - RAAI Insured 5/12 at 102.00 AA 2,472,040
1,700 5.625%, 5/01/32 - RAAI Insured 5/12 at 102.00 AA 1,754,944
5,625 Broward County School Board, Florida, Certificates of 7/14 at 100.00 AAA 5,996,813
Participation, Series 2004C, 5.250%, 7/01/18 (DD, settling
7/01/04) - FSA Insured
1,000 Escambia County, Florida, Sales Tax Revenue Refunding Bonds, 10/12 at 101.00 AAA 1,025,630
Series 2002, 5.000%, 10/01/21 - AMBAC Insured
Florida Intergovernmental Finance Commission, Capital Revenue
Bonds, Daytona Beach Community Redevelopment Agency, Series
2001C-1:
1,280 5.000%, 2/01/20 - AMBAC Insured 8/11 at 100.00 Aaa 1,309,491
5,000 5.125%, 2/01/31 - AMBAC Insured 8/11 at 100.00 Aaa 4,999,750
5,000 Florida Ports Financing Commission, Revenue Bonds, State 6/07 at 101.00 AAA 5,045,300
Transportation Trust Fund, Series 1996, 5.375%, 6/01/27
(Alternative Minimum Tax) - MBIA Insured
1,685 Florida Municipal Loan Council, Revenue Bonds, Series 2003A, 5/13 at 100.00 AAA 1,711,960
5.000%, 5/01/22 - MBIA Insured
5,000 Hernando County, Florida, Criminal Justice Complex Financing No Opt. Call AAA 6,527,950
Program, Series 1986, 7.650%, 7/01/16 - FGIC Insured
2,000 Jacksonville, Florida, Guaranteed Entitlement Revenue 10/12 at 100.00 AAA 2,037,080
Refunding and Improvement Bonds, Series 2002,
5.000%, 10/01/22 - FGIC Insured
5,015 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/13 at 100.00 AAA 5,271,517
Bonds, Series 2003, 5.250%, 10/01/21 - MBIA Insured
16
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Orlando Community Redevelopment Agency, Florida, Tax Increment
Bonds, Republic Drive-Universal Boulevard/I-4 Interchange
Project, Series 2002:
$ 1,375 5.125%, 4/01/19 - AMBAC Insured 4/12 at 100.00 AAA $ 1,423,799
1,495 5.125%, 4/01/20 - AMBAC Insured 4/12 at 100.00 AAA 1,541,166
1,225 5.125%, 4/01/21 - AMBAC Insured 4/12 at 100.00 AAA 1,258,014
575 Osceola County Industrial Development Authority, Florida, 8/11 at 101.00 AAA 578,968
Industrial Development Revenue Bonds, P.M. Wells Charter
School Project, Series 2001A, 5.000%, 8/01/23 - MBIA Insured
Osceola County, Florida, Transportation Revenue Bonds, Osceola
Parkway, Series 2004:
3,660 5.000%, 4/01/21 - MBIA Insured 4/14 at 100.00 Aaa 3,757,832
4,000 5.000%, 4/01/23 - MBIA Insured 4/14 at 100.00 Aaa 4,063,000
8,330 Palm Beach County School Board, Florida, Certificates of 8/12 at 100.00 AAA 8,258,195
Participation, Series 2002D, 5.000%, 8/01/28 - FSA Insured
2,560 Palm Beach County School Board, Florida, Certificates of 8/14 at 100.00 AAA 2,593,306
Participation, Series 2004A, 5.000%, 8/01/23 - FGIC Insured
Pasco County School Board, Florida, Certificates of Participation,
Series 2004A:
1,000 5.000%, 8/01/19 - AMBAC Insured No Opt. Call AAA 1,030,730
2,335 5.000%, 8/01/21 - AMBAC Insured 8/14 at 100.00 AAA 2,380,322
2,500 Polk County School District, Florida, Sales Tax Revenue Bonds, 10/14 at 100.00 AAA 2,681,150
Series 2004, 5.250%, 10/01/18 - FSA Insured
2,750 St. John's County, Florida, Transportation Improvement Revenue 10/13 at 100.00 AAA 2,791,525
Bonds, Series 2003, 5.000%, 10/01/23 - AMBAC Insured
Tampa Sports Authority, Florida, Special Purpose Bonds, State
Sales Tax Payment, Tampa Bay Arena Project, Series 1995:
1,250 5.750%, 10/01/20 - MBIA Insured No Opt. Call AAA 1,421,663
2,585 5.750%, 10/01/25 - MBIA Insured No Opt. Call AAA 2,878,397
8,605 Volusia County School Board, Florida, Sales Tax Revenue 10/12 at 100.00 AAA 9,356,647
Bonds, Series 2002, 5.375%, 10/01/15 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 19.3%
11,500 Broward County, Florida, Airport System Revenue Bonds, 10/11 at 101.00 AAA 11,525,760
Series 2001J-1, 5.250%, 10/01/26 (Alternative Minimum
Tax) - AMBAC Insured
3,500 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 10/06 at 102.00 AAA 3,605,490
5.750%, 10/01/26 (Alternative Minimum Tax) - MBIA Insured
12,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/09 at 101.00 AAA 11,794,560
Revenue Bonds, Series 1999A, 5.125%, 10/01/28 (Alternative
Minimum Tax) - FGIC Insured
4,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 4,031,800
Revenue Bonds, Series 2002B, 5.125%, 10/01/21 (Alternative
Minimum Tax) - FSA Insured
2,590 Hillsborough County Aviation Authority, Florida, Revenue 10/06 at 102.00 AAA 2,795,258
Bonds, Tampa International Airport, Series 1996A,
6.000%, 10/01/23 (Alternative Minimum Tax) - FGIC Insured
3,500 Hillsborough County Aviation Authority, Florida, Revenue 10/06 at 102.00 AAA 3,759,910
Bonds, Tampa International Airport, Series 1996B,
5.875%, 10/01/23 - FGIC Insured
2,090 Lee County, Florida, Transportation Facilities Revenue Bonds, 10/14 at 100.00 AAA 2,172,325
Series 2004B, 5.000%, 10/01/19 - AMBAC Insured
1,750 Miami-Dade County Industrial Development Authority, Florida, 10/09 at 101.00 AAA 1,874,635
Industrial Development Revenue Bonds, Airis Miami II LLC -
Miami International Airport, Series 1999, 6.000%, 10/15/25
(Alternative Minimum Tax) - AMBAC Insured
5,390 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA 5,796,298
International Airport, Series 2002, 5.750%, 10/01/18
(Alternative Minimum Tax) - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 15.8%
7,225 Dade County, Florida, Special Obligation and Refunding 10/08 at 48.83 AAA 3,078,139
Bonds, Series 1996B, 0.000%, 10/01/20 (Pre-refunded to
10/01/08) - AMBAC Insured
20,000 Escambia County Health Facilities Authority, Florida, Revenue 11/09 at 101.00 AAA 22,732,400
Bonds, Ascension Health Credit Group, Series 1999A-2,
6.000%, 11/15/31 (Pre-refunded to 11/15/09)
17
Nuveen Florida Investment Quality Municipal Fund (NQF) (continued)
Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (continued)
$ 6,955 Florida State Board of Education, Full Faith and Credit Public 6/05 at 101.00 AAA $ 7,304,767
Education Capital Outlay Bonds, Series 1993F,
6.000%, 6/01/20 (Pre-refunded to 6/01/05)
1,400 Pembroke Pines, Florida, Capital Improvement Revenue 10/04 at 102.00 AAA 1,444,240
Bonds, Series 1995, 6.000%, 10/01/25 (Pre-refunded to
10/01/04) - AMBAC Insured
3,570 Seminole County, Florida, Water and Sewer Revenue Refunding No Opt. Call AAA 4,188,574
and Improvement Bonds, Series 1992, 6.000%, 10/01/19 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 14.2%
4,330 Hillsborough County Industrial Development Authority, 10/12 at 100.00 Baa2 4,339,786
Florida, Pollution Control Revenue Bonds, Tampa Electric
Company Project, Series 2002, 5.100%, 10/01/13
1,050 Jacksonville Beach, Florida, Utility Revenue Refunding Bonds, 10/10 at 100.00 Aaa 1,091,548
Series 2002, 5.000%, 4/01/17 - AMBAC Insured
4,250 Lakeland, Florida, Energy System Refunding Revenue Bonds, No Opt. Call AAA 4,898,635
Series 1999C, 6.050%, 10/01/11 - FSA Insured
7,345 Orlando Utilities Commission, Florida, Water and Electric 10/11 at 101.00 Aa1 7,780,485
Revenue Refunding Bonds, Series 2001, 5.250%, 10/01/18
5,000 Orlando Utilities Commission, Florida, Water and Electric 10/12 at 100.00 Aa1 5,296,450
Revenue Refunding Bonds, Series 2002C, 5.250%, 10/01/18
5,000 Orlando Utilities Commission, Florida, Water and Electric No Opt. Call Aa1 5,711,000
Revenue Refunding Bonds, Series 1992, 6.000%, 10/01/10
5,550 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 5,635,193
Series 2002II, 5.125%, 7/01/26 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.4%
3,310 Cocoa, Florida, Water and Sewer System Refunding Revenue No Opt. Call AAA 3,632,593
Bonds, Series 2003, 5.500%, 10/01/23 - AMBAC Insured
Hollywood, Florida, Water and Sewer Revenue Refunding
and Improvement Bonds, Series 2003:
2,000 5.000%, 10/01/19 - FSA Insured 10/13 at 100.00 Aaa 2,072,560
3,390 5.000%, 10/01/21 - FSA Insured 10/13 at 100.00 Aaa 3,476,886
1,000 Jacksonville, Florida, Water and Sewer Revenue Bonds, 8/05 at 102.00 AAA 1,059,940
United Water Florida Project, Series 1995, 6.350%, 8/01/25
(Alternative Minimum Tax) - AMBAC Insured
1,525 Lee County, Florida, Water and Sewer Revenue Refunding 10/13 at 100.00 Aaa 1,571,025
Bonds, Series 2003A, 5.000%, 10/01/20 - MBIA Insured
8,300 Miami-Dade County, Florida, Water and Sewer System Revenue 10/09 at 101.00 AAA 8,211,273
Bonds, Series 1999A, 5.000%, 10/01/29 - FGIC Insured
1,175 Naples, Florida, Water and Sewer Revenue Bonds, 9/12 at 100.00 Aa2 1,248,144
Series 2002, 5.000%, 9/01/14
2,060 Polk County, Florida, Utility System Revenue Bonds, 10/13 at 100.00 Aaa 2,154,307
Series 2003, 5.250%, 10/01/22 - FGIC Insured
1,680 Seminole County, Florida, Water and Sewer Revenue No Opt. Call AAA 1,951,757
Refunding and Improvement Bonds, Series 1992,
6.000%, 10/01/19 - MBIA Insured
5,000 Sunrise, Florida, Utility System Revenue Refunding Bonds, 10/18 at 100.00 AAA 5,019,900
Series 1998, 5.000%, 10/01/28 - AMBAC Insured
Winter Springs, Florida, Water and Sewer Revenue Refunding
Bonds, Series 2001:
700 5.250%, 4/01/16 - MBIA Insured 4/11 at 101.00 AAA 747,423
1,585 5.000%, 4/01/20 - MBIA Insured 4/11 at 101.00 AAA 1,626,350
- ------------------------------------------------------------------------------------------------------------------------------------
$ 366,375 Total Long-Term Investments (cost $362,913,240) - 153.6% 376,506,585
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.3% 538,462
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.9)% (132,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 245,045,047
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
N/R Investment is not rated.
(DD) Security purchased on a delayed delivery basis.
See accompanying notes to financial statements.
18
Nuveen Florida Quality Income Municipal Fund (NUF)
Portfolio of
INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.5%
Broward County Educational Facilities Authority, Florida,
Revenue Bonds, Nova Southeastern University, Series 2004B:
$ 1,000 5.500%, 4/01/24 4/14 at 100.00 BBB $ 1,001,400
500 5.625%, 4/01/34 4/14 at 100.00 BBB 500,805
2,345 FSU Financial Assistance, Inc., Florida, General Revenue 10/14 at 100.00 AAA 2,480,799
Bonds, Educational and Athletic Facilities Improvements,
Series 2004, 5.000%, 10/01/16 - AMBAC Insured
4,965 Florida, Board of Education Lottery Revenue Bonds, 7/11 at 101.00 AAA 5,098,360
Series 2001B, 5.000%, 7/01/20 - FGIC Insured
2,685 Florida, Board of Education Lottery Revenue Bonds, 1/13 at 101.00 AAA 2,863,794
Series 2002C, 5.000%, 1/01/15 - MBIA Insured
3,905 Miami-Dade County Educational Facilities Authority, Florida, 4/14 at 100.00 AAA 4,015,551
Revenue Bonds, University of Miami, Series 2004A,
5.000%, 4/01/20 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 24.8%
1,500 Citrus County Hospital Board, Florida, Revenue Bonds, Citrus 8/13 at 100.00 Baa3 1,525,785
Memorial Hospital, Series 2002 Refunding, 6.375%, 8/15/32
2,600 Highlands County Health Facilities Authority, Florida, Hospital 11/11 at 101.00 A 2,689,232
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2001A, 6.000%, 11/15/31
Hillsborough County Industrial Development Authority, Florida,
Hospital Revenue Bonds, Tampa General Hospital, Series 2003B:
500 5.250%, 10/01/28 10/13 at 100.00 Baa1 477,850
1,590 5.250%, 10/01/34 10/13 at 100.00 Baa1 1,507,177
8,500 Jacksonville Economic Development Commission, Florida, 11/11 at 101.00 AA 8,632,175
Healthcare Facilities Revenue Bonds, Mayo Clinic,
Series 2001A, 5.500%, 11/15/36
5,000 Jacksonville Health Facilities Authority, Florida, Revenue 11/12 at 101.00 AA 4,941,500
Bonds, Ascension Health Credit Group, Series 2002A,
5.250%, 11/15/32
9,000 North Broward Hospital District, Florida, Revenue and 1/11 at 101.00 A- 9,310,950
Improvement Bonds, Series 2001, 6.000%, 1/15/31
6,000 Orange County Health Facilities Authority, Florida, Hospital 12/12 at 100.00 A 6,117,900
Revenue Bonds, Orlando Regional Healthcare System,
Series 2002, 5.750%, 12/01/32
5,000 Orange County Health Facilities Authority, Florida, Hospital 11/12 at 101.00 A 5,033,500
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2002, 5.250%, 11/15/18
7,500 Pinellas County Health Facilities Authority, Florida, Revenue 5/13 at 100.00 A1 7,528,200
Bonds, Baycare Health System, Series 2003, 5.500%, 11/15/33
4,625 South Broward Hospital District, Florida, Hospital Revenue 5/12 at 101.00 Aa3 4,744,371
Bonds, Series 2002, 5.625%, 5/01/32
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 16.7%
Broward County Housing Finance Authority, Florida, GNMA
Collateralized Multifamily Housing Revenue Refunding Bonds,
Tamarac Pointe Apartments Project, Series 1996:
1,500 6.250%, 7/01/26 7/06 at 102.00 AAA 1,560,150
1,000 6.300%, 1/01/32 7/06 at 102.00 AAA 1,038,290
9,600 Broward County Housing Finance Authority, Florida, 6/09 at 102.00 N/R 8,515,104
Multifamily Housing Revenue Bonds, Pembroke Gardens
Project, Series 1999, 6.150%, 6/01/39 (Alternative
Minimum Tax) (Mandatory put 6/01/29)
515 Florida Housing Finance Agency, General Mortgage Revenue 12/04 at 101.00 AAA 520,655
Refunding Bonds, Series 1992A, 6.400%, 6/01/24
1,000 Florida Housing Finance Agency, Housing Revenue Bonds, 10/05 at 102.00 AAA 1,022,630
Holly Cove Apartment Project, Series 1995F,
6.150%, 10/01/25 (Alternative Minimum Tax) -
AMBAC Insured
3,170 Florida Housing Finance Corporation, Housing Revenue 12/08 at 102.00 A+ 3,096,044
Refunding Bonds, Hunters Ridge at Deerwood Apartments,
Series 1998-0, 5.300%, 12/01/28
5,790 Florida Housing Finance Corporation, Housing Revenue 10/10 at 102.00 Aaa 6,004,635
Bonds, Villa de Mallorca Apartments, Series 2000H-1,
6.000%, 7/01/33 (Alternative Minimum Tax)
19
Nuveen Florida Quality Income Municipal Fund (NUF) (continued)
Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 7,425 Florida Housing Finance Corporation, Revenue Bonds, 2/16 at 100.00 N/R $ 6,534,000
Pembroke Apartments, Series 2001B, 7.750%, 2/01/41
3,630 Miami-Dade County Housing Finance Authority, Florida, 1/11 at 102.00 AAA 3,717,229
Multifamily Revenue Bonds, Sunset Bay Apartments
Project, Series 2000-5A, 5.950%, 7/01/30 (Alternative
Minimum Tax) - FSA Insured
3,240 Pinellas County Housing Finance Authority, Florida, 1/08 at 100.00 AAA 3,407,411
Multifamily Housing Revenue Bonds, Emerald Bay
Apartments Project, Series 1998A, 5.000%, 4/01/28 (Alternative
Minimum Tax) (Mandatory put 4/01/08)
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.4%
2,020 Broward County Housing Finance Authority, Florida, Single 4/09 at 25.51 Aaa 373,639
Family Mortgage Revenue Refunding Bonds, Series 2000B,
0.000%, 4/01/29 (Alternative Minimum Tax)
1,625 Broward County Housing Finance Authority, Florida, Single 4/10 at 25.36 Aaa 290,924
Family Mortgage Revenue Bonds, Series 2001C,
0.000%, 4/01/33 (Alternative Minimum Tax)
2,635 Florida Housing Finance Agency, Homeowner Mortgage 1/06 at 102.00 AA 2,710,150
Revenue Bonds, Refunding/New Money Issue, Series 1995-2,
6.200%, 7/01/27 (Alternative Minimum Tax)
475 Florida Housing Finance Agency, Home Ownership Revenue No Opt. Call AAA 513,751
Refunding Bonds, Series 1987-G1, 8.595%, 11/01/17
485 Lee County Housing Finance Authority, Florida, Single 3/07 at 105.00 Aaa 504,031
Family Mortgage Revenue Bonds, Multi-County Program,
Series 1997A, Subseries 1, 7.200%, 3/01/27 (Alternative
Minimum Tax)
225 Miami-Dade County Housing Authority, Florida, Home Owner 4/08 at 101.50 Aaa 232,110
Mortgage Revenue Bonds, Series 1999A-1, 5.550%, 10/01/19
(Alternative Minimum Tax)
1,590 Orange County Housing Finance Authority, Florida, Single 4/06 at 102.00 AAA 1,635,744
Family Mortgage Revenue Bonds, Series 1996A,
6.300%, 4/01/28 (Alternative Minimum Tax)
900 Orange County Housing Finance Authority, Florida, Single 9/07 at 102.00 AAA 904,806
Family Mortgage Revenue Bonds, Series 1997B,
5.100%, 9/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.5%
7,285 Atlantic Beach, Florida, Health Care Facilities Revenue 10/09 at 101.00 A 7,510,544
Refunding Bonds, Fleet Landing Project, Series 1999,
5.750%, 10/01/18 - ACA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 5.0%
10,000 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 10,493,600
Exempt Facilities Revenue Bonds, National Gypsum Company,
Apollo Beach Project, Series 2000B, 7.125%, 4/01/30
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.6%
4,940 Florida State Board of Education, Full Faith and Credit, Public 6/11 at 101.00 AAA 4,955,709
Education Capital Outlay Bonds, Series 2001C,
5.125%, 6/01/29 - FGIC Insured
15,925 Florida State Board of Education, Full Faith and Credit Public 6/12 at 101.00 AAA 16,392,080
Education Capital Outlay Bonds, Series 2002B,
5.000%, 6/01/20 - MBIA Insured
3,240 Reedy Creek Improvement District, Orange and Osceola 4/14 at 100.00 AAA 3,308,753
Counties, Florida, General Obligation Bonds, Series 2004A,
5.000%, 6/01/22 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 31.7%
1,000 Alachua County School Board, Florida, Certificates of 7/11 at 101.00 Aaa 1,019,480
Participation, Series 2001, 5.000%, 7/01/21 - AMBAC Insured
Miami-Dade County, Florida, Beacon Tradeport Community
Development District, Special Assessment Bonds, Commercial
Project, Series 2002A:
1,975 5.500%, 5/01/22 - RAAI Insured 5/12 at 102.00 AA 2,046,179
850 5.625%, 5/01/32 - RAAI Insured 5/12 at 102.00 AA 877,472
3,870 Broward County School Board, Florida, Certificates of 7/14 at 100.00 AAA 4,084,166
Participation, Series 2004C, 5.250%, 7/01/20 - FSA Insured
1,290 Escambia County, Florida, Tourist Development Refunding 10/12 at 100.00 AAA 1,338,014
Revenue Bonds, Series 2002, 5.000%, 10/01/18 -
MBIA Insured
8,425 Florida Department of Environmental Protection, Florida 7/13 at 101.00 AAA 8,750,963
Forever Revenue Bonds, Series 2003C, 5.000%, 7/01/19 -
AMBAC Insured
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Florida Municipal Loan Council, Revenue Bonds, Series 2000B:
$ 1,040 0.000%, 11/01/25 - MBIA Insured No Opt. Call AAA $ 321,079
1,590 0.000%, 11/01/26 - MBIA Insured No Opt. Call AAA 458,556
3,145 Jacksonville, Florida, Excise Taxes Revenue Refunding Bonds, 10/13 at 100.00 AAA 3,318,038
Series 2003C, 5.250%, 10/01/18 (Alternative Minimum Tax) -
MBIA Insured
2,230 Jacksonville, Florida, Guaranteed Entitlement Revenue 10/12 at 100.00 AAA 2,282,070
Refunding and Improvement Bonds, Series 2002,
5.000%, 10/01/21 - FGIC Insured
1,000 Jacksonville, Florida, Local Government Sales Tax Revenue No Opt. Call AAA 1,122,130
Refunding Bonds, Series 2001, 5.500%, 10/01/14 -
FGIC Insured
1,430 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/11 at 100.00 AAA 1,447,675
Bonds, Series 2001, 5.000%, 10/01/23 - AMBAC Insured
2,750 Jacksonville, Florida, Local Government Sales Tax Revenue 10/12 at 100.00 AAA 2,956,333
Refunding and Improvement Bonds, Series 2002,
5.375%, 10/01/17 - FGIC Insured
5,130 Manatee County School District, Florida, Sales Tax Revenue 10/13 at 100.00 AAA 5,399,428
Bonds, Series 2003, 5.000%, 10/01/17 - AMBAC Insured
2,475 Northern Palm Beach County Improvement District, Florida, 8/10 at 102.00 AA 2,690,325
Revenue Bonds, Water Control and Improvement Development
Unit 19, Series 2000, 6.100%, 8/01/21 - RAAI Insured
2,000 Opa-Locka, Florida, Capital Improvement Revenue Bonds, 7/04 at 102.00 AAA 2,046,720
Series 1994, 6.125%, 1/01/24 - FGIC Insured
Orange County, Florida, Sales Tax Revenue Bonds, Series 2002A:
3,265 5.125%, 1/01/20 - FGIC Insured 1/13 at 100.00 AAA 3,385,674
3,400 5.125%, 1/01/23 - FGIC Insured 1/13 at 100.00 AAA 3,477,588
2,040 Palm Beach County School Board, Florida, Certificates of 8/12 at 100.00 AAA 2,133,514
Participation, Series 2002D, 5.250%, 8/01/21 - FSA Insured
1,500 Palm Beach County School Board, Florida, Certificates of 8/14 at 100.00 AAA 1,527,900
Participation, Series 2004A, 5.000%, 8/01/22 - FGIC Insured
1,000 Pasco County, Florida, Sales Tax Revenue Bonds, Series 2003, 12/13 at 100.00 Aaa 1,049,370
5.000%, 12/01/17 - AMBAC Insured
2,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 2,299,180
Appropriation Bonds, Series 2002E, 6.000%, 8/01/26
11,815 Volusia County School Board, Florida, Sales Tax Revenue 10/12 at 100.00 AAA 12,910,959
Bonds, Series 2002, 5.375%, 10/01/14 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 17.6%
2,225 Broward County, Florida, Airport System Revenue Bonds, 10/11 at 101.00 AAA 2,268,833
Series 2001J-1, 5.250%, 10/01/21 (Alternative Minimum
Tax) - AMBAC Insured
12,000 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 10/06 at 102.00 AAA 12,361,680
5.750%, 10/01/26 (Alternative Minimum Tax) - MBIA Insured
1,500 Dade County, Florida, Aviation Revenue Bonds, Series 1995B, 10/05 at 102.00 AAA 1,588,260
6.000%, 10/01/24 (Alternative Minimum Tax) - MBIA Insured
3,500 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/07 at 101.00 AAA 3,522,820
Revenue Bonds, Series 1997, 5.250%, 10/01/23 (Alternative
Minimum Tax) - FGIC Insured
4,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 4,031,800
Revenue Bonds, Series 2002B, 5.125%, 10/01/21 (Alternative
Minimum Tax) - FSA Insured
7,500 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/08 at 101.00 AAA 7,372,875
International Airport, Series 1998A, 5.000%, 10/01/24
(Alternative Minimum Tax) - FGIC Insured
4,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/08 at 101.00 AAA 3,958,240
International Airport, Series 1998C, 5.000%, 10/01/23
(Alternative Minimum Tax) - MBIA Insured
2,000 Miami-Dade County Expressway Authority, Florida, Toll System 7/11 at 101.00 Aaa 2,045,660
Refunding Revenue Bonds, Series 2001, 5.000%, 7/01/21 -
FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 1.9%
1,500 Bradford County Health Facilities Authority, Florida, Health No Opt. Call AAA 1,701,435
Facilities Revenue Refunding Bonds, SantaFe Health Care
Facilities Project, Series 1993, 6.050%, 11/15/16
2,300 Sarasota County, Florida, Utility System Revenue Bonds, 10/04 at 102.00 AAA 2,375,555
Series 1994, 6.500%, 10/01/22 (Pre-refunded to
10/01/04) - FGIC Insured
21
Nuveen Florida Quality Income Municipal Fund (NUF) (continued)
Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 14.9%
$ 750 Gainesville, Florida, Utilities System Revenue Bonds, 10/13 at 100.00 AA $ 787,208
Series 2003A, 5.250%, 10/01/21
10,000 Hillsborough County Industrial Development Authority, 10/12 at 100.00 Baa2 10,022,600
Florida, Pollution Control Revenue Bonds, Tampa Electric
Company Project, Series 2002, 5.100%, 10/01/13
9,440 JEA, St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 9,850,357
Refunding Bonds, Series 2002-17, Issue 2, 5.000%, 10/01/15
3,290 Orlando Utilities Commission, Florida, Water and Electric 10/11 at 101.00 Aa1 3,501,448
Revenue Refunding Bonds, Series 2001, 5.250%, 10/01/17
Orlando Utilities Commission, Florida, Water and Electric
Revenue Refunding Bonds, Series 2002C:
3,170 5.250%, 10/01/17 10/12 at 100.00 Aa1 3,373,736
1,000 5.000%, 10/01/27 10/12 at 100.00 Aa1 992,180
3,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 3,046,050
Series 2002II, 5.125%, 7/01/26 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.9%
2,000 Broward County, Florida, Water and Sewer Utility Revenue 10/13 at 100.00 AAA 2,051,260
Bonds, Series 2003, 5.000%, 10/01/21 - MBIA Insured
3,310 Cocoa, Florida, Water and Sewer Revenue Refunding Bonds, No Opt. Call AAA 3,632,593
Series 2003, 5.500%, 10/01/23 - AMBAC Insured
Hollywood, Florida, Water and Sewer Revenue Refunding and
Improvement Bonds, Series 2003:
1,000 5.000%, 10/01/19 - FSA Insured 10/13 at 100.00 Aaa 1,036,280
4,000 5.000%, 10/01/20 - FSA Insured 10/13 at 100.00 Aaa 4,120,720
JEA, Florida, Water and Sewerage System Revenue Bonds,
Series 2004A:
3,235 5.000%, 10/01/18 - FGIC Insured 10/13 at 100.00 AAA 3,367,279
5,090 5.000%, 10/01/19 - FGIC Insured 10/13 at 100.00 AAA 5,266,877
3,000 5.000%, 10/01/23 - FGIC Insured 10/13 at 100.00 AAA 3,040,830
1,065 Lee County Industrial Development Authority, Florida, Utilities 11/12 at 100.00 AAA 1,089,346
Revenue Bonds, Bonita Springs Utilities, Inc. Project,
Series 2002, 5.000%, 11/01/19 (Alternative Minimum
Tax) - MBIA Insured
1,500 Tampa Bay Water Utility System, Florida, Utility System No Opt. Call AAA 1,639,664
Revenue Bonds, Series 2004, 5.250%, 10/01/18 -
FGIC Insured
2,000 Village Center Community Development District, Florida, 10/13 at 101.00 AAA 2,002,680
Utility Revenue Bonds, Series 2003, 5.125%, 10/01/28 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
$ 318,025 Total Long-Term Investments (cost $317,504,374) - 151.5% 320,702,417
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.5%
1,000 Florida Higher Educational Facilities Financing Authority, A-1+ 1,000,000
Revenue Bonds, Variable Rate Demand Obligations,
St. Thomas University Project, Series 2003, 1.100%, 1/01/19+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,000 Total Short-Term Investments (cost $1,000,000) 1,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $318,504,374) - 152.0% 321,702,417
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.3% 6,956,154
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.3)% (117,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 211,658,571
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
22
Nuveen Insured Florida Premium Income Municipal Fund (NFL)
Portfolio of
INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 2.5%
$ 5,325 Escambia County Housing Finance Authority, Florida, Dormitory 6/09 at 101.00 AAA $ 5,663,244
Revenue Bonds, University of West Florida Foundation, Inc.
Project, Series 1999, 5.750%, 6/01/31 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 12.6%
2,000 Brevard County Health Facilities Authority, Florida, Hospital 10/06 at 101.00 AAA 2,146,900
Revenue Bonds, Holmes Regional Medical Center Project,
Series 1996, 5.625%, 10/01/14 - MBIA Insured
2,500 Hillsborough County Industrial Development Authority, Florida, No Opt. Call AAA 2,999,700
Industrial Development Revenue Bonds, University Community
Hospital, Series 1994, 6.500%, 8/15/19 - MBIA Insured
5,000 Lee County Hospital Board of Directors, Florida, Fixed-Rate 4/07 at 102.00 AAA 5,324,450
Hospital Revenue Bonds, Lee Memorial Health System,
Series 1997A, 5.750%, 4/01/22 - MBIA Insured
7,220 Miami-Dade County Health Facilities Authority, Florida, 8/11 at 101.00 AAA 7,224,332
Hospital Revenue Refunding Bonds, Miami Children's
Hospital, Series 2001A, 5.125%, 8/15/26 - AMBAC Insured
5,000 North Broward Hospital District, Florida, Revenue Refunding 1/07 at 101.00 AAA 5,073,600
and Improvement Bonds, Series 1997, 5.375%, 1/15/24 -
MBIA Insured
5,350 Polk County Industrial Development Authority, Florida, 9/04 at 101.00 AAA 5,447,209
Industrial Development Revenue Bonds, Winter Haven
Hospital Project, Series 1985-2, 6.250%, 9/01/15 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 15.1%
980 Broward County, Florida, Housing Finance Authority, 6/07 at 102.00 AAA 1,006,117
Multifamily Housing Revenue Refunding Bonds, Pompano
Oaks Apartments Project, Series 1997, GNMA Collateralized,
6.000%, 12/01/27 (Alternative Minimum Tax)
Collier County Housing Finance Authority, Florida, Multifamily
Housing Revenue Refunding Bonds, Saxon Manor Isles Project,
Series 1998A, Subseries 1:
1,040 5.350%, 9/01/18 (Alternative Minimum Tax) - FSA Insured 3/08 at 101.00 AAA 1,064,170
1,400 5.400%, 9/01/23 (Alternative Minimum Tax) - FSA Insured 3/08 at 101.00 AAA 1,418,130
Collier County Housing Finance Authority, Florida, Multifamily
Housing Revenue Bonds, Saxon Manor Isles Project, Series 1998B:
1,260 5.350%, 9/01/18 (Alternative Minimum Tax) - FSA Insured 3/08 at 101.00 AAA 1,289,282
1,000 5.400%, 9/01/23 (Alternative Minimum Tax) - FSA Insured 3/08 at 101.00 AAA 1,012,950
Dade County Housing Finance Authority, Florida, Multifamily
Mortgage Revenue Bonds, Siesta Pointe Apartments Project,
Series 1997A:
1,230 5.650%, 9/01/17 (Alternative Minimum Tax) - FSA Insured 9/07 at 101.00 AAA 1,267,441
1,890 5.750%, 9/01/29 (Alternative Minimum Tax) - FSA Insured 9/07 at 101.00 AAA 1,923,755
1,400 Florida Housing Finance Agency, Housing Revenue Bonds, 4/07 at 102.00 AAA 1,450,638
Riverfront Apartments Project, Series 1997A, 6.250%, 4/01/37
(Alternative Minimum Tax) - AMBAC Insured
1,590 Florida Housing Finance Agency, Housing Revenue Bonds, 12/05 at 102.00 AAA 1,635,076
Williamsburg Village Apartments Project, Series 1995E,
6.100%, 12/01/20 (Alternative Minimum Tax) -
AMBAC Insured
1,000 Florida Housing Finance Agency, Housing Revenue Bonds, 5/06 at 102.00 AAA 1,035,730
Turtle Creek Apartments Project, Series 1996C-1,
6.100%, 5/01/16 (Alternative Minimum Tax) - AMBAC Insured
Florida Housing Finance Agency, Housing Revenue Bonds,
Sterling Palms Apartments Project, Series 1996D-1:
1,000 6.300%, 12/01/16 (Alternative Minimum Tax) - AMBAC Insured 6/06 at 102.00 AAA 1,038,760
1,500 6.400%, 12/01/26 (Alternative Minimum Tax) - AMBAC Insured 6/06 at 102.00 AAA 1,549,755
750 Florida Housing Finance Agency, Housing Revenue Bonds, 12/06 at 102.00 AAA 770,918
The Crossings at Indian Run Apartments Project, Series 1996V,
6.100%, 12/01/26 (Alternative Minimum Tax) - AMBAC Insured
2,535 Florida Housing Finance Corporation, GNMA Collateralized 9/10 at 102.00 AAA 2,605,498
Housing Revenue Bonds, Raintree Apartments, Series 2000J-1,
5.950%, 3/01/35 (Alternative Minimum Tax)
2,080 Florida Housing Finance Corporation, GNMA Collateralized 12/10 at 102.00 AAA 2,158,458
Housing Revenue Bonds, Cobblestone Apartments,
Series 2000K-1, 6.000%, 12/01/33 (Alternative Minimum Tax)
23
Nuveen Insured Florida Premium Income Municipal Fund (NFL) (continued)
Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
Florida Housing Finance Corporation, Housing Revenue Bonds,
Augustine Club Apartments, Series 2000D-1:
$ 1,500 5.500%, 10/01/20 - MBIA Insured 10/10 at 102.00 Aaa $ 1,560,375
4,750 5.750%, 10/01/30 - MBIA Insured 10/10 at 102.00 Aaa 4,913,400
3,605 Jacksonville, Florida, GNMA Collateralized Housing Revenue 9/04 at 101.00 AAA 3,638,454
Refunding Bonds, Windermere Manor Apartments Project,
Series 1993A, 5.875%, 3/20/28
1,425 Miami-Dade County Housing Finance Authority, Florida, 6/11 at 100.00 AAA 1,466,240
Multifamily Mortgage Revenue Bonds, Country Club Villas II
Project, Series 2001-1A, 5.750%, 7/01/27 (Alternative
Minimum Tax) - FSA Insured
1,065 Palm Beach County Housing Finance Authority, Florida, 7/12 at 100.00 AAA 1,071,177
Multifamily Housing Revenue Bonds, Westlake Apartments
Phase II, Series 2002, 5.150%, 7/01/22 (Alternative
Minimum Tax) - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.1%
710 Broward County Housing Finance Authority, Florida, Single 4/09 at 101.00 Aaa 710,540
Family Mortgage Revenue Refunding Bonds, Series 1999B,
5.250%, 4/01/31 (Alternative Minimum Tax) - MBIA Insured
1,130 Duval County Housing Finance Authority, Florida, Single Family 10/04 at 102.00 Aaa 1,155,301
Mortgage Revenue Bonds, GNMA Mortgage-Backed Securities
Program, Series 1994, 6.700%, 10/01/26 (Alternative
Minimum Tax)
1,585 Escambia County Housing Finance Authority, Florida, 4/08 at 102.00 Aaa 1,585,888
Multi-County Single Family Mortgage Revenue Bonds,
Series 1999, 5.200%, 4/01/32 (Alternative Minimum
Tax) - MBIA Insured
7,955 Florida Housing Finance Corporation, Homeowner 1/10 at 24.65 AAA 1,355,930
Mortgage Revenue Bonds, Series 2000-4, 0.000%, 7/01/30
(Alternative Minimum Tax) - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 2.3%
3,745 Broward County, Florida, General Obligation Bonds, 1/14 at 100.00 AA+ 3,843,306
Series 2004, 5.000%, 1/01/21
1,390 Venice, Florida, General Obligation Bonds, Series 2004, 2/14 at 100.00 AAA 1,403,122
5.000%, 2/01/24 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 43.5%
3,820 Broward County School Board, Florida, Certificates of 7/13 at 100.00 AAA 4,031,590
Participation, Series 2003, 5.250%, 7/01/19 - MBIA Insured
4,835 Cape Coral, Florida, Capital Improvement Revenue Bonds, 10/09 at 101.00 Aaa 4,993,685
Series 1999, 5.375%, 10/01/24 - FSA Insured
1,250 Dade County, Florida, Special Obligation and Refunding 10/06 at 102.00 AAA 1,230,663
Bonds, Series 1996B, 5.000%, 10/01/35 - AMBAC Insured
1,555 DeSoto County, Florida, Capital Improvement Revenue Bonds, 4/12 at 101.00 AAA 1,637,928
Series 2002, 5.250%, 10/01/20 - MBIA Insured
Destin, Florida, Capital Improvement Revenue Bonds, Series 2002:
1,000 5.000%, 8/01/27 - MBIA Insured 8/12 at 101.00 Aaa 991,840
1,000 5.125%, 8/01/31 - MBIA Insured 8/12 at 101.00 Aaa 1,002,840
2,230 Florida Ports Financing Commission, Revenue Bonds, State 10/09 at 101.00 AAA 2,292,039
Transportation Trust Fund - Intermodal Program, Series 1999,
5.500%, 10/01/23 (Alternative Minimum Tax) - FGIC Insured
1,435 Florida Department of Environmental Protection, Florida 7/13 at 101.00 AAA 1,490,520
Forever Revenue Bonds, Series 2003A, 5.000%, 7/01/19 -
FGIC Insured
Florida Municipal Loan Council, Revenue Bonds, Series 2000B:
3,365 5.375%, 11/01/25 - MBIA Insured 11/10 at 101.00 AAA 3,482,169
3,345 5.375%, 11/01/30 - MBIA Insured 11/10 at 101.00 AAA 3,436,519
1,000 Florida Municipal Loan Council, Revenue Bonds, 11/11 at 101.00 AAA 1,059,790
Series 2001A, 5.250%, 11/01/18 - MBIA Insured
1,080 Gulf Breeze, Florida, Local Government Loan Program, 12/06 at 101.00 AAA 1,172,189
Remarketed 6-3-1996, Series 1985B, 5.900%, 12/01/15
(Mandatory put 12/01/10) - FGIC Insured
1,020 Gulf Breeze, Florida, Local Government Loan Program, 12/06 at 101.00 AAA 1,107,067
Remarketed 6-3-1996, Series 1985C, 5.900%, 12/01/15
(Mandatory put 12/01/08) - FGIC Insured
1,500 Gulf Breeze, Florida, Local Government Loan Program, 12/10 at 101.00 AAA 1,589,160
Remarketed 7-3-2000, Series 1985E, 5.750%, 12/01/20
(Mandatory put 12/01/19) - FGIC Insured
5,200 Gulf Breeze, Florida, Local Government Loan Program, 12/11 at 101.00 AAA 5,448,768
Remarketed 6-1-2001, Series 1985E, 4.750%, 12/01/20
(Mandatory put 12/01/11) - FGIC Insured
6,000 Hillsborough County School Board, Florida, Certificates of 7/13 at 100.00 AAA 5,936,640
Participation, Series 2003, 5.000%, 7/01/29 - MBIA Insured
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,500 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/13 at 100.00 AAA $ 1,583,685
Bonds, Series 2003, 5.250%, 10/01/20 - MBIA Insured
1,765 Julington Creek Plantation Community Development District, 5/12 at 101.00 AAA 1,771,848
Florida, Special Assessment Revenue Bonds, Series 2002,
4.750%, 5/01/19 - MBIA Insured
Lakeland, Florida, Utility Tax Revenue Bonds, Series 2003B:
1,730 5.000%, 10/01/18 - AMBAC Insured 10/12 at 100.00 AAA 1,796,813
2,000 5.000%, 10/01/19 - AMBAC Insured 10/12 at 100.00 AAA 2,066,080
18,000 Miami-Dade County, Florida, Subordinate Special Obligation 4/08 at 49.54 AAA 7,141,860
Bonds, Series 1997A, 0.000%, 10/01/21 - MBIA Insured
1,000 Opa-Locka, Florida, Capital Improvement Revenue Bonds, 7/04 at 102.00 AAA 1,024,420
Series 1994, 7.000%, 1/01/14 - FGIC Insured
3,180 Orange County, Florida, Sales Tax Revenue Bonds, 1/13 at 100.00 AAA 3,315,722
Series 2002B, 5.125%, 1/01/19 - FGIC Insured
4,770 Orange County School Board, Florida, Master Lease Program, 8/07 at 101.00 Aaa 4,966,524
Certificates of Participation, Series 1997A, 5.375%, 8/01/22 -
MBIA Insured
5,820 Osceola County, Florida, Transportation Revenue Bonds, 4/14 at 100.00 Aaa 5,911,665
Osceola Parkway, Series 2004, 5.000%, 4/01/23 -
MBIA Insured
6,500 Palm Beach County, Florida, Administrative Complex Revenue No Opt. Call AAA 7,156,955
Refunding Bonds, Series 1993, 5.250%, 6/01/11 -
FGIC Insured
Palm Beach County, Florida, Criminal Justice Facilities, Revenue
Refunding Bonds, Series 1993:
2,500 5.375%, 6/01/08 - FGIC Insured No Opt. Call AAA 2,726,850
4,000 5.375%, 6/01/10 - FGIC Insured No Opt. Call AAA 4,426,360
2,150 Palm Beach County School Board, Florida, Certificates of 8/14 at 100.00 AAA 2,171,113
Participation, Series 2004A, 5.000%, 8/01/24 - FGIC Insured
4,260 St. Lucie County School Board, Florida, Certificates of 7/14 at 100.00 AAA 4,285,006
Participation, Master Lease Program, Series 2004A,
5.000%, 7/01/24 - FSA Insured
St. Petersburg, Florida, Professional Sports Facility Sales
Tax Revenue Bonds, Series 2003:
1,405 5.125%, 10/01/19 - FSA Insured 10/13 at 100.00 Aaa 1,469,138
1,475 5.125%, 10/01/20 - FSA Insured 10/13 at 100.00 Aaa 1,533,277
1,555 5.125%, 10/01/21 - FSA Insured 10/13 at 100.00 Aaa 1,609,332
1,245 Tamarac, Florida, Sales Tax Revenue Bonds, Series 2002, 4/12 at 100.00 AAA 1,266,924
5.000%, 4/01/22 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 17.1%
9,000 Broward County, Florida, Airport System Revenue Bonds, 10/11 at 101.00 AAA 9,020,160
Series 2001J-1, 5.250%, 10/01/26 (Alternative Minimum
Tax) - AMBAC Insured
1,100 Dade County, Florida, Seaport Revenue Refunding Bonds, 10/05 at 102.00 AAA 1,164,537
Series 1995, 5.750%, 10/01/15 - MBIA Insured
2,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/13 at 100.00 AAA 2,081,780
Revenue Refunding Bonds, Series 2003A, 5.000%, 10/01/17 -
FSA Insured
3,800 Jacksonville Port Authority, Florida, Port Facilities Revenue 11/06 at 102.00 AAA 4,018,956
Bonds, Series 1996, 5.625%, 11/01/18 (Alternative
Minimum Tax) - MBIA Insured
15,025 Lee County, Florida, Airport Revenue Bonds, Series 2000A, 10/10 at 101.00 AAA 15,938,520
6.000%, 10/01/32 (Alternative Minimum Tax) - FSA Insured
5,615 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/12 at 100.00 AAA 6,020,347
Miami International Airport, Series 2002, 5.750%, 10/01/19
(Alternative Minimum Tax) - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 17.9%
3,750 Broward County Health Facilities Authority, Florida, Hospital 6/05 at 100.00 AAA 3,853,575
Revenue Bonds, Holy Cross Hospital, Inc., Series 1993,
5.850%, 6/01/12 (Pre-refunded to 6/01/05) - AMBAC Insured
1,025 Jacksonville, Florida, Sales Tax Revenue Bonds, River City 10/05 at 101.00 AAA 1,082,626
Renaissance Project, Series 1995, 5.500%, 10/01/10
(Pre-refunded to 10/01/05) - FGIC Insured
990 Orange County, Florida, Tourist Development Tax Revenue 10/04 at 100.00 AAA 995,693
Bonds, Series 1992A, 6.250%, 10/01/13 - AMBAC Insured
25
Nuveen Insured Florida Premium Income Municipal Fund (NFL) (continued)
Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (continued)
St. Lucie County, Florida, Utility System Revenue Refunding
Bonds, Series 1993:
$ 5,000 5.500%, 10/01/15 - FGIC Insured 10/04 at 101.00 AAA $ 5,202,200
1,200 5.500%, 10/01/21 - FGIC Insured 10/04 at 101.00 AAA 1,246,296
7,855 Seminole County, Florida, Water and Sewer Revenue Refunding No Opt. Call AAA 9,216,036
and Improvement Bonds, Series 1992, 6.000%, 10/01/19 -
MBIA Insured
Sunrise, Florida, Utility System Revenue Bonds, Series 1996A:
6,900 5.750%, 10/01/16 (Pre-refunded to 10/01/06) - AMBAC Insured 10/06 at 101.00 AAA 7,498,506
8,700 5.750%, 10/01/21 (Pre-refunded to 10/01/06) - AMBAC Insured 10/06 at 101.00 AAA 9,454,638
1,500 Tampa, Florida, Healthcare System Revenue Bonds, Allegany 12/04 at 101.00 AAA 1,528,545
Health System - St. Joseph's Hospital, Series 1993,
5.125%, 12/01/23 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.0%
3,525 Palm Beach County Solid Waste Authority, Florida, Revenue No Opt. Call AAA 3,964,991
Refunding Bonds, Series 1997A, 6.000%, 10/01/09 -
AMBAC Insured
8,000 Palm Beach County Solid Waste Authority, Florida, Revenue No Opt. Call AAA 5,022,160
Bonds, Series 2002B, 0.000%, 10/01/14 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 29.7%
Broward County, Florida, Water and Sewer Utility Revenue
Bonds, Series 2003:
4,775 5.000%, 10/01/21 - MBIA Insured 10/13 at 100.00 AAA 4,897,383
4,500 5.000%, 10/01/24 - MBIA Insured 10/13 at 100.00 AAA 4,541,175
Davie, Florida, Water and Sewer Revenue Refunding and
Improvement Bonds, Series 2003:
910 5.250%, 10/01/17 - AMBAC Insured 10/13 at 100.00 AAA 975,720
475 5.250%, 10/01/18 - AMBAC Insured 10/13 at 100.00 AAA 506,687
Deltona, Florida, Utility Systems Water and Sewer Revenue
Bonds, Series 2003:
1,250 5.250%, 10/01/22 - MBIA Insured 10/13 at 100.00 AAA 1,307,225
1,095 5.000%, 10/01/23 - MBIA Insured 10/13 at 100.00 AAA 1,111,535
1,225 5.000%, 10/01/24 - MBIA Insured 10/13 at 100.00 AAA 1,236,209
1,000 Florida Governmental Utility Authority, Utility Revenue Bonds, 7/09 at 101.00 Aaa 989,440
Golden Gate Utility System, Series 1999, 5.000%, 7/01/29 -
AMBAC Insured
3,945 Florida Governmental Utility Authority, Utility Revenue Bonds, 10/13 at 100.00 AAA 4,004,570
Citrus Utility System, Series 2003, 5.000%, 10/01/23 -
AMBAC Insured
8,000 Indian River County, Florida, Water and Sewer Revenue 9/08 at 102.00 AAA 8,151,200
Bonds, Series 1993A, 5.250%, 9/01/24 - FGIC Insured
2,000 Indian Trail Water Control District, Florida, Water Control 8/07 at 101.00 AAA 2,112,040
and Improvement Bonds, Unit of Development No. 17,
Series 1996, 5.500%, 8/01/22 - MBIA Insured
3,450 JEA, Florida, Water and Sewerage System Revenue Bonds, 4/07 at 100.00 AAA 3,484,811
Series 2002A, 5.375%, 10/01/30 - MBIA Insured
2,510 JEA, Florida, Water and Sewerage System Revenue Bonds, 10/13 at 100.00 AAA 2,691,724
Series 2004A, 5.000%, 10/01/14 - FGIC Insured
1,450 Jupiter, Florida, Water Revenue Bonds, Series 2003, 10/13 at 100.00 AAA 1,479,508
5.000%, 10/01/22 - AMBAC Insured
2,000 Manatee County, Florida, Public Utilities Revenue Bonds, 10/13 at 100.00 Aaa 2,079,020
Series 2003, 5.125%, 10/01/20 - MBIA Insured
Marco Island, Florida, Water Utility System Revenue Bonds,
Series 2003:
1,350 5.250%, 10/01/17 - MBIA Insured 10/13 at 100.00 AAA 1,447,497
1,000 5.250%, 10/01/18 - MBIA Insured 10/13 at 100.00 AAA 1,066,710
1,750 Palm Bay, Florida, Utility System Revenue Bonds, Palm Bay 10/13 at 100.00 AAA 1,802,815
Utility Corporation, Series 2003, 5.000%, 10/01/20 -
MBIA Insured
Palm Coast, Florida, Water Utility System Revenue Bonds,
Series 2003:
1,000 5.250%, 10/01/19 - MBIA Insured 10/13 at 100.00 AAA 1,061,230
500 5.250%, 10/01/20 - MBIA Insured 10/13 at 100.00 AAA 527,895
500 5.250%, 10/01/21 - MBIA Insured 10/13 at 100.00 AAA 525,575
Port St. Lucie, Florida, Stormwater Utility System Revenue
Refunding Bonds, Series 2002:
1,190 5.250%, 5/01/15 - MBIA Insured 5/12 at 100.00 AAA 1,278,798
1,980 5.250%, 5/01/17 - MBIA Insured 5/12 at 100.00 AAA 2,104,562
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 10,000 Port St. Lucie, Florida, Utility System Revenue Bonds, 9/11 at 34.97 AAA $ 2,315,300
Series 2001, 0.000%, 9/01/29 - MBIA Insured
2,330 Port St. Lucie, Florida, Utility System Revenue Bonds, 9/13 at 100.00 AAA 2,389,299
Series 2003, 5.000%, 9/01/21 - MBIA Insured
1,000 Port St. Lucie, Florida, Utility System Revenue Bonds, 9/14 at 100.00 Aaa 1,027,630
Series 2004, 5.000%, 9/01/21 - MBIA Insured
Sebring, Florida, Water and Wastewater Revenue Refunding
Bonds, Series 2002:
1,360 5.250%, 1/01/17 - FGIC Insured 1/13 at 100.00 AAA 1,451,705
770 5.250%, 1/01/18 - FGIC Insured 1/13 at 100.00 AAA 817,971
500 5.250%, 1/01/20 - FGIC Insured 1/13 at 100.00 AAA 526,070
3,530 Seminole County, Florida, Water and Sewer Revenue No Opt. Call AAA 4,101,013
Refunding and Improvement Bonds, Series 1992,
6.000%, 10/01/19 - MBIA Insured
1,300 Sunrise, Florida, Utility System Revenue Refunding Bonds, 10/06 at 102.00 AAA 1,418,985
Series 1996, 5.800%, 10/01/11 - AMBAC Insured
2,000 Village Center Community Development District, Florida, 10/13 at 101.00 AAA 2,071,240
Utility Revenue Bonds, Series 2003, 5.250%, 10/01/23 -
MBIA Insured
1,100 Wauchula, Florida, Utility Revenue Bonds, Series 2001A, 10/11 at 101.00 AAA 1,087,800
5.000%, 10/01/31 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
$ 343,130 Total Long-Term Investments (cost $312,919,423) - 146.8% 328,836,733
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 6,128,518
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.6)% (111,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 223,965,251
====================================================================================================================
All of the bonds in the portfolio are either covered by
Original Issue Insurance, Secondary Market Insurance or
Portfolio Insurance, or are backed by an escrow or
trust containing sufficient U.S. Government or U.S.
Government agency securities, any of which ensure the
timely payment of principal and interest.
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
See accompanying notes to financial statements.
27
Nuveen Insured Florida Tax-Free Advantage Municipal Fund (NWF)
Portfolio of
INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.4%
$ 2,240 FSU Financial Assistance, Inc., Florida, General Revenue Bonds, No Opt. Call AAA $ 2,412,480
Educational and Athletic Facilities Improvements,
Series 2004, 5.000%, 10/01/14 - AMBAC Insured
1,985 North Miami, Florida, Educational Facilities Revenue Refunding 4/13 at 100.00 AAA 2,039,389
Bonds, Johnson and Wales University, Series 2003A,
5.000%, 4/01/19 - XLCA Insured
Volusia County Educational Facilities Authority, Florida,
Revenue Refunding Bonds, Embry-Riddle Aeronautical University
Project, Series 2003:
1,000 5.200%, 10/15/26 - RAAI Insured 10/13 at 100.00 AA 988,470
1,250 5.200%, 10/15/33 - RAAI Insured 10/13 at 100.00 AA 1,220,513
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 16.2%
4,000 Highlands County Health Facilities Authority, Florida, Revenue 11/13 at 100.00 A 4,101,080
Bonds, Adventist Health System/Sunbelt Obligated Group,
Series 2003D, 5.875%, 11/15/29
3,000 Pinellas County Health Facilities Authority, Florida, Revenue 5/13 at 100.00 A1 3,080,490
Bonds, Baycare Health System, Series 2003,
5.750%, 11/15/27
1,500 South Miami Health Facilities Authority, Florida, Hospital 2/13 at 100.00 AA- 1,488,645
Revenue Bonds, Baptist Health Systems of South Florida,
Series 2003, 5.200%, 11/15/28
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.5%
1,250 Florida Housing Finance Agency, Home Ownership Revenue No Opt. Call AAA 1,351,975
Refunding Bonds, Series 1987G-1, 8.595%, 11/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 8.2%
1,665 Florida State Board of Education, Full Faith and Credit 6/12 at 101.00 AAA 1,643,954
Public Education Capital Outlay Bonds, Series 2002A,
5.000%, 6/01/32 - MBIA Insured
2,660 Grand Prairie Independent School District, Dallas County, 2/13 at 100.00 AAA 2,731,847
Texas, General Obligation Bonds, Series 2003,
5.375%, 2/15/26 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 77.4%
1,000 Escambia County, Florida, Sales Tax Revenue Refunding 10/12 at 101.00 AAA 1,072,220
Bonds, Series 2002, 5.250%, 10/01/17 - AMBAC Insured
1,525 Fernandina Beach, Florida, Utility Acquisition and Improvement 9/13 at 100.00 AAA 1,547,875
Revenue Bonds, Series 2003, 5.000%, 9/01/23 - FGIC Insured
3,000 Florida Municipal Loan Council, Revenue Bonds, 12/13 at 100.00 AAA 2,961,540
Series 2003B, 5.000%, 12/01/28 - MBIA Insured
4,000 Hillsborough County School Board, Florida, Certificates of 7/13 at 100.00 AAA 3,957,760
Participation, Series 2003, 5.000%, 7/01/29 - MBIA Insured
2,270 Jacksonville, Florida, Local Government Sales Tax Revenue 10/12 at 100.00 AAA 2,430,534
Refunding and Improvement Bonds, Series 2002,
5.375%, 10/01/18 - FGIC Insured
2,265 Lakeland, Florida, Utility Tax Revenue Bonds, Series 2003B, 10/12 at 100.00 AAA 2,327,265
5.000%, 10/01/20 - AMBAC Insured
2,000 Orange County, Florida, Sales Tax Revenue Bonds, 1/13 at 100.00 AAA 2,108,460
Series 2002A, 5.125%, 1/01/17 - FGIC Insured
1,500 Orange County, Florida, Sales Tax Revenue Bonds, 1/13 at 100.00 AAA 1,504,095
Series 2002B, 5.125%, 1/01/32 - FGIC Insured
3,370 Osceola County School Board, Florida, Certificates of 6/12 at 101.00 Aaa 3,494,387
Participation, Series 2002A, 5.125%, 6/01/20 -
AMBAC Insured
3,335 Palm Bay, Florida, Local Optional Gas Tax Revenue Bonds, 10/14 at 100.00 AAA 3,536,968
Series 2004, 5.250%, 10/01/20 - MBIA Insured
Palm Beach County School Board, Florida, Certificates of
Participation, Series 2002D:
2,950 5.250%, 8/01/20 - FSA Insured 8/12 at 100.00 AAA 3,097,441
3,670 5.000%, 8/01/28 - FSA Insured 8/12 at 100.00 AAA 3,638,365
3,460 Palm Beach Gardens, Florida, Special Obligation Revenue 2/13 at 100.00 AAA 3,560,617
Bonds, Series 2004, 5.000%, 5/01/20 - AMBAC Insured
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,115 Port St. Lucie, Florida, Sales Tax Revenue Bonds, Series 2003, 9/13 at 100.00 AAA $ 2,146,725
5.000%, 9/01/23 - MBIA Insured
4,000 St. Lucie County School Board, Florida, Certificates of 7/14 at 100.00 AAA 4,023,480
Participation, Master Lease Program, Series 2004A,
5.000%, 7/01/24 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.1%
2,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 1,976,300
Revenue Bonds, Series 2002A, 5.125%, 10/01/32 -
FSA Insured
2,105 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/13 at 100.00 AAA 2,191,073
Revenue Refunding Bonds, Series 2003A, 5.000%, 10/01/17 -
FSA Insured
1,730 Lee County, Florida, Transportation Facilities Revenue Bonds, 10/14 at 100.00 AAA 1,768,181
Series 2004B, 5.000%, 10/01/22 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.8%
2,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 2,030,700
Series 2002II, 5.125%, 7/01/26 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 19.0%
2,000 JEA, Florida, Water and Sewerage System Revenue Bonds, 4/07 at 100.00 AAA 2,020,180
Series 2002A, 5.375%, 10/01/30 - MBIA Insured
3,000 Marco Island, Florida, Water Utility System Revenue Bonds, 10/13 at 100.00 AAA 2,984,670
Series 2003, 5.000%, 10/01/27 - MBIA Insured
2,000 Miami-Dade County, Florida, Water and Sewer System 10/09 at 101.00 AAA 1,978,620
Revenue Bonds, Series 1999A, 5.000%, 10/01/29 -
FGIC Insured
500 North Port, Florida, Utility System Revenue Bonds, 10/10 at 101.00 Aaa 501,015
Series 2000, 5.000%, 10/01/25 - FSA Insured
1,095 Palm Bay, Florida, Utility System Revenue Bonds, 10/14 at 100.00 AAA 1,161,313
Series 2004, 5.250%, 10/01/20 - MBIA Insured
1,500 Port St. Lucie, Florida, Stormwater Utility System Revenue 5/12 at 100.00 AAA 1,515,884
Refunding Bonds, Series 2002, 5.000%, 5/01/23 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
$ 78,940 Total Long-Term Investments (cost $80,825,823) - 150.6% 80,594,511
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.6% 1,909,139
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.2)% (29,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 53,503,650
====================================================================================================================
At least 80% of the Fund's net assets (including net
assets applicable to Preferred shares) are invested
in municipal securities that are either covered by
Original Issue Insurance, Secondary Market Insurance
or Portfolio Insurance which ensures the timely
payment of principal and interest. Up to 20% of the
Fund's net assets (including net assets applicable
to Preferred shares) may be invested in municipal
securities that are (i) either backed by an escrow
or trust containing sufficient U.S. Government or
U.S. Government agency securities (also ensuring the
timely payment of principal and interest), or (ii)
municipal bonds that are rated, at the time of
investment, within the four highest grades (Baa or
BBB or better by Moody's, S&P or Fitch) or unrated
but judged to be of comparable quality by the Adviser.
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
See accompanying notes to financial statements.
29
Statement of
ASSETS AND LIABILITIES June 30, 2004
FLORIDA FLORIDA INSURED FLORIDA INSURED FLORIDA
INVESTMENT QUALITY QUALITY INCOME PREMIUM INCOME TAX-FREE ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $362,913,240,
$318,504,374, $312,919,423 and $80,825,823,
respectively) $376,506,585 $321,702,417 $328,836,733 $80,594,511
Cash -- 144,786 1,890,110 901,417
Receivables:
Interest 5,183,396 4,548,703 4,222,476 1,042,732
Investments sold 2,805,288 2,475,000 262,493 5,000
Other assets 22,623 32,264 22,832 5,102
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 384,517,892 328,903,170 335,234,644 82,548,762
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 1,280,878 -- -- --
Payable for investments purchased 5,920,852 -- -- --
Accrued expenses:
Management fees 195,910 171,382 174,653 22,185
Other 68,641 63,053 78,256 19,586
Preferred share dividends payable 6,564 10,164 16,484 3,341
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 7,472,845 244,599 269,393 45,112
- ------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 132,000,000 117,000,000 111,000,000 29,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $245,045,047 $211,658,571 $223,965,251 $53,503,650
====================================================================================================================================
Common shares outstanding 16,547,432 14,287,006 14,365,771 3,881,364
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.81 $ 14.81 $ 15.59 $ 13.78
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 165,474 $ 142,870 $ 143,658 $ 38,814
Paid-in surplus 231,093,032 205,859,564 203,931,054 54,731,858
Undistributed (Over-distribution of) net investment income 2,993,802 2,471,686 2,699,782 (185,493)
Accumulated net realized gain (loss) from investments (2,800,606) (13,592) 1,273,447 (850,217)
Net unrealized appreciation (depreciation) of investments 13,593,345 3,198,043 15,917,310 (231,312)
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $245,045,047 $211,658,571 $223,965,251 $53,503,650
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
30
Statement of
OPERATIONS Year Ended June 30, 2004
FLORIDA FLORIDA INSURED FLORIDA INSURED FLORIDA
INVESTMENT QUALITY QUALITY INCOME PREMIUM INCOME TAX-FREE ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 20,671,489 $ 17,592,725 $ 17,359,111 $ 4,030,297
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,453,270 2,140,073 2,184,865 547,585
Preferred shares - auction fees 331,075 293,742 278,879 72,736
Preferred shares - dividend disbursing agent fees 20,053 30,082 20,053 10,028
Shareholders' servicing agent fees and expenses 28,573 19,565 21,165 798
Custodian's fees and expenses 83,495 70,619 76,574 23,154
Trustees' fees and expenses 7,205 5,944 6,107 1,943
Professional fees 155,204 82,697 19,477 11,326
Shareholders' reports - printing and mailing expenses 28,131 21,593 23,442 7,947
Stock exchange listing fees 15,826 13,417 13,350 338
Investor relations expense 32,232 27,689 15,220 8,601
Other expenses 17,305 19,131 16,704 7,952
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit
and expense reimbursement 3,172,369 2,724,552 2,675,836 692,408
Custodian fee credit (14,972) (9,404) (11,110) (14,309)
Expense reimbursement -- -- -- (269,580)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 3,157,397 2,715,148 2,664,726 408,519
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 17,514,092 14,877,577 14,694,385 3,621,778
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments (2,803,982) (32,845) 1,274,638 (853,466)
Change in net unrealized appreciation (depreciation)
of investments (11,261,628) (11,076,128) (13,917,598) (2,969,559)
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (14,065,610) (11,108,973) (12,642,960) (3,823,025)
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (935,071) (760,122) (788,965) (201,060)
From accumulated net realized gains from investments (222,346) (126,819) (113,631) --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (1,157,417) (886,941) (902,596) (201,060)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations $ 2,291,065 $ 2,881,663 $ 1,148,829 $ (402,307)
====================================================================================================================================
See accompanying notes to financial statements.
31
Statement of
CHANGES IN NET ASSETS
FLORIDA INVESTMENT QUALITY (NQF) FLORIDA QUALITY INCOME (NUF)
--------------------------------- ---------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/04 6/30/03 6/30/04 6/30/03
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 17,514,092 $ 18,145,230 $ 14,877,577 $ 15,393,583
Net realized gain (loss) from investments (2,803,982) 3,875,859 (32,845) 3,463,251
Change in net unrealized appreciation (depreciation)
of investments (11,261,628) 8,853,791 (11,076,128) 6,508,220
Distributions to Preferred shareholders:
From net investment income (935,071) (1,204,511) (760,122) (1,022,349)
From accumulated net realized gains from investments (222,346) (226,303) (126,819) (275,955)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations 2,291,065 29,444,066 2,881,663 24,066,750
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (16,718,800) (16,027,701) (14,211,785) (14,168,989)
From accumulated net realized gains from investments (3,231,994) (2,098,066) (2,042,597) (2,512,996)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (19,950,794) (18,125,767) (16,254,382) (16,681,985)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- --
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 848,891 704,166 720,589 874,329
Preferred shares offering costs -- -- -- 7,500
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from capital share transactions 848,891 704,166 720,589 881,829
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares (16,810,838) 12,022,465 (12,652,130) 8,266,594
Net assets applicable to Common shares at the
beginning of period 261,855,885 249,833,420 224,310,701 216,044,107
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the
end of period $245,045,047 $261,855,885 $211,658,571 $224,310,701
====================================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of period $ 2,993,802 $ 3,136,957 $ 2,471,686 $ 2,585,269
====================================================================================================================================
See accompanying notes to financial statements.
32
INSURED FLORIDA INSURED FLORIDA
PREMIUM INCOME (NFL) TAX-FREE ADVANTAGE (NWF)
--------------------------------- --------------------------------
FOR THE PERIOD
11/21/02
(COMMENCEMENT
OF OPERATIONS)
YEAR ENDED YEAR ENDED YEAR ENDED THROUGH
6/30/04 6/30/03 6/30/04 6/30/03
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 14,694,385 $ 14,925,713 $ 3,621,778 $ 1,548,813
Net realized gain (loss) from investments 1,274,638 2,057,125 (853,466) 17,814
Change in net unrealized appreciation (depreciation)
of investments (13,917,598) 10,662,174 (2,969,559) 2,738,247
Distributions to Preferred shareholders:
From net investment income (788,965) (1,147,462) (201,060) (126,559)
From accumulated net realized gains from investments (113,631) (14,829) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations 1,148,829 26,482,721 (402,307) 4,178,315
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (13,709,147) (13,374,479) (3,352,591) (1,675,194)
From accumulated net realized gains from investments (1,461,384) (125,967) -- --
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (15,170,531) (13,500,446) (3,352,591) (1,675,194)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- 55,321,650
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 496,462 547,078 43,015 24,090
Preferred shares offering costs -- -- (7,003) (726,600)
Net increase in net assets applicable to Common shares
from capital share transactions 496,462 547,078 36,012 54,619,140
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares (13,525,240) 13,529,353 (3,718,886) 57,122,261
Net assets applicable to Common shares at the
beginning of period 237,490,491 223,961,138 57,222,536 100,275
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the
end of period $223,965,251 $237,490,491 $53,503,650 $57,222,536
====================================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of period $ 2,699,782 $ 2,503,509 $ (185,493) $ (253,061)
====================================================================================================================================
See accompanying notes to financial statements.
33
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state Funds (the "Funds") covered in this report and their corresponding
Common share stock exchange symbols are Nuveen Florida Investment Quality
Municipal Fund (NQF), Nuveen Florida Quality Income Municipal Fund (NUF), Nuveen
Insured Florida Premium Income Municipal Fund (NFL) and Nuveen Insured Florida
Tax-Free Advantage Municipal Fund (NWF). Common shares of Florida Investment
Quality (NQF), Florida Quality Income (NUF) and Insured Florida Premium Income
(NFL) are traded on the New York Stock Exchange while Common shares of Insured
Florida Tax-Free Advantage (NWF) are traded on the American Stock Exchange. The
Funds are registered under the Investment Company Act of 1940, as amended, as
closed-end management investment companies.
Prior to the commencement of operations of Insured Florida Tax-Free Advantage
(NWF), the Fund had no operations other than those related to organizational
matters, the initial capital contribution of $100,275 by Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc., and the
recording of the organization expenses ($11,500) and its reimbursement by Nuveen
Investments, LLC, also a wholly owned subsidiary of Nuveen Investments, Inc.
Each Fund seeks to provide current income exempt from regular federal income
tax, and in the case of Insured Florida Tax-Free Advantage (NWF) the alternative
minimum tax applicable to individuals, by investing primarily in a diversified
portfolio of municipal obligations issued by state and local government
authorities within the state of Florida.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When price quotes
are not readily available (which is usually the case for municipal securities),
the pricing service establishes fair market value based on yields or prices of
municipal bonds of comparable quality, type of issue, coupon, maturity and
rating, indications of value from securities dealers, evaluations of anticipated
cash flows or collateral and general market conditions. If it is determined that
market prices for a security are unavailable or inappropriate, the Board of
Trustees of the Funds, or its designee, may establish a fair value for the
security. Temporary investments in securities that have variable rate and demand
features qualifying them as short-term securities are valued at amortized cost,
which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At June 30, 2004, Florida
Investment Quality (NQF) had an outstanding delayed delivery purchase commitment
of $5,920,852. There were no such outstanding purchase commitments in any of the
other Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Professional Fees
Professional fees presented in the Statement of Operations consist of legal fees
incurred in the normal course of operations, audit fees, tax consulting fees
and, in some cases, workout expenditures. Workout expenditures are incurred in
an attempt to protect or enhance an investment, or to pursue other claims or
legal actions on behalf of the Fund's shareholders.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute all income and capital gains to shareholders and to
otherwise comply with the requirements of Subchapter M of the Internal Revenue
Code applicable to regulated investment companies. Therefore, no federal income
tax provision is required. Furthermore, each Fund intends to satisfy conditions
which will enable interest from municipal securities, which is exempt from
regular federal income tax, and in the case of Insured Florida Tax-Free
Advantage (NWF) the alternative minimum tax applicable to individuals, to retain
such tax-exempt status when distributed to shareholders of the Funds. The
investment policies of Insured Florida Tax-Free Advantage (NWF) permit the Fund
to invest in a limited amount of out-of-state securities. Although the Fund may
pursue this strategy from time to time, this strategy will not impact the
tax-exempt status of the Fund's shares or of its distributions to its
shareholders. All monthly tax-exempt income dividends paid during the fiscal
year ended June 30, 2004, have been designated Exempt Interest Dividends. Net
realized capital gains and ordinary income distributions made by the Funds are
subject to federal taxation.
34
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in one or more Series. The dividend rate
on each Series may change every seven days, as set pursuant to a dutch auction
process by the auction agent, and is payable at or near the end of each rate
period. The number of Preferred shares outstanding, by Series and in total, for
each Fund is as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- --------------------------------------------------------------------------------
Number of shares:
Series M -- 1,700 -- --
Series T 3,080 -- -- --
Series W -- -- 1,640 1,160
Series TH -- 1,700 2,800 --
Series F 2,200 1,280 -- --
- --------------------------------------------------------------------------------
Total 5,280 4,680 4,440 1,160
================================================================================
Effective January 17, 2003, Insured Florida Tax-Free Advantage (NWF) issued
1,160 Series W, $25,000 stated value Preferred shares.
Insurance
Insured Florida Premium Income (NFL) invests in municipal securities which are
either covered by insurance or are backed by an escrow or trust account
containing sufficient U.S. Government or U.S. Government agency securities, both
of which ensure the timely payment of principal and interest.
Insured Florida Tax-Free Advantage (NWF) invests at least 80% of its net assets
(including net assets applicable to Preferred shares) in municipal securities
that are covered by insurance. The Fund may also invest up to 20% of its net
assets (including net assets applicable to Preferred shares) in municipal
securities which are either (i) backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency securities, or (ii)
municipal bonds that are rated, at the time of investment, within the four
highest grades (Baa or BBB or better by Moody's, S&P or Fitch) or unrated but
judged to be of comparable quality by the Adviser.
Each insured municipal security is covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance. Such insurance does not
guarantee the market value of the municipal securities or the value of the
Funds' Common shares. Original Issue Insurance and Secondary Market Insurance
remain in effect as long as the municipal securities covered thereby remain
outstanding and the insurer remains in business, regardless of whether the Funds
ultimately dispose of such municipal securities. Consequently, the market value
of the municipal securities covered by Original Issue Insurance or Secondary
Market Insurance may reflect value attributable to the insurance. Portfolio
Insurance is effective only while the municipal securities are held by the
Funds. Accordingly, neither the prices used in determining the market value of
the underlying municipal securities nor the Common share net asset value of the
Funds include value, if any, attributable to the Portfolio Insurance. Each
policy of the Portfolio Insurance does, however, give the Funds the right to
obtain permanent insurance with respect to the municipal security covered by the
Portfolio Insurance policy at the time of its sale.
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap, and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the fiscal year ended June 30, 2004.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Indemnifications
Under the Fund's organizational documents, its Officers and Trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Offering Costs
Nuveen Investments, LLC has agreed to pay all Common share offering costs (other
than the sales load) that exceed $.03 per Common share for Florida Quality
Income (NUF)and Insured Florida Tax-Free Advantage (NWF). Florida Quality
Income's (NUF) and Insured Florida
35
Notes to
FINANCIAL STATEMENTS (continued)
Tax-Free Advantage's (NWF) share of Common share offering costs ($467,902 and
$116,100, respectively) were recorded as a reduction of the proceeds from the
sale of Common shares.
Costs incurred by Florida Quality Income (NUF) and Insured Florida Tax-Free
Advantage (NWF) in connection with their offering of Preferred shares
($1,936,308 and $733,603, respectively) were recorded as a reduction to paid-in
surplus.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
FLORIDA FLORIDA
INVESTMENT QUALITY (NQF) QUALITY INCOME (NUF)
-------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/04 6/30/03 6/30/04 6/30/03
- ---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- --
Shares issued to shareholders
due to reinvestment
of distributions 51,656 43,415 44,713 53,877
- ---------------------------------------------------------------------------------------------------------
51,656 43,415 44,713 53,877
=========================================================================================================
Preferred shares sold -- -- -- --
=========================================================================================================
INSURED FLORIDA INSURED FLORIDA
PREMIUM INCOME (NFL) TAX-FREE ADVANTAGE (NWF)
-------------------------------------------------
FOR THE
PERIOD 11/21/02
(COMMENCEMENT
YEAR ENDED YEAR ENDED YEAR ENDED OF OPERATIONS)
6/30/04 6/30/03 6/30/04 THROUGH 6/30/03
- ---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- 3,870,000
Shares issued to shareholders
due to reinvestment
of distributions 29,319 32,881 2,781 1,583
- ---------------------------------------------------------------------------------------------------------
29,319 32,881 2,781 3,871,583
=========================================================================================================
Preferred shares sold -- -- -- 1,160
=========================================================================================================
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities for the fiscal year ended June 30, 2004, were as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ---------------------------------------------------------------------------------------------------------
Purchases $86,397,122 $124,469,935 $129,078,894 $111,472,270
Sales and maturities 86,071,128 130,393,289 140,372,291 114,017,272
=========================================================================================================
36
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At June 30, 2004, the cost of investments were as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ---------------------------------------------------------------------------------------------------------
Cost of investments $362,698,805 $318,502,244 $312,883,116 $80,825,823
=========================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at June 30, 2004, were as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ---------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $17,181,384 $ 6,420,832 $16,139,321 $ 371,661
Depreciation (3,373,604) (3,220,659) (185,704) (602,973)
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $13,807,780 $ 3,200,173 $15,953,617 $ (231,312)
=========================================================================================================
The tax components of undistributed net investment income and net realized gains
at June 30, 2004, were as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ---------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income $4,152,700 $3,661,789 $3,661,547 $97,307
Undistributed net ordinary income * 31,488 3,752 22,105 --
Undistributed net long-term capital gains -- -- 1,419,016 --
=========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the fiscal years ended June 30,
2004 and June 30, 2003, was designated for purposes of the dividends paid
deduction as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
2004 (NQF) (NUF) (NFL) (NWF)
- ---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $17,592,549 $14,970,905 $14,475,786 $3,554,044
Distributions from net ordinary income * 212,385 266,129 328,384 --
Distributions from net long-term capital gains 3,289,856 1,903,287 1,248,969 --
=========================================================================================================
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
2003 (NQF) (NUF) (NFL) (NWF)
- ---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $17,151,125 $15,182,483 $14,483,420 $1,518,559
Distributions from net ordinary income * 271,066 62,185 -- --
Distributions from net long-term capital gains 2,068,358 2,736,853 140,796 --
=========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
37
Notes to
FINANCIAL STATEMENTS (continued)
At June 30, 2004, the following Funds had unused capital loss carryforwards
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied, the carryforwards will expire as follows:
INSURED
FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY TAX-FREE
QUALITY INCOME ADVANTAGE
(NQF) (NUF) (NWF)
- --------------------------------------------------------------------------------
Expiration year:
2012 $150,118 $13,592 $837,725
================================================================================
The following Funds have elected to defer net realized losses from investments
incurred from November 1, 2003 through June 30, 2004 ("post-October losses") in
accordance with Federal income tax regulations. The following post-October
losses are treated as having arisen in the following fiscal year:
INSURED
FLORIDA FLORIDA
INVESTMENT TAX-FREE
QUALITY ADVANTAGE
(NQF) (NWF)
- --------------------------------------------------------------------------------
$2,650,488 $12,492
================================================================================
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' (excluding Insured Florida Tax-Free Advantage (NWF)) investment
management agreements with the Adviser, each Fund pays an annual management fee,
payable monthly, at the rates set forth below, which are based upon the average
daily net assets (including net assets attributable to Preferred shares) of each
Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
- --------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
38
Under Insured Florida Tax-Free Advantage's (NWF) investment management agreement
with the Adviser, the Fund pays an annual management fee, payable monthly, at
the rates set forth below, which are based upon the average daily net assets
(including net assets attributable to Preferred shares) of the Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
- --------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For net assets over $2 billion .5750
================================================================================
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of Trustees
has adopted a deferred compensation plan for independent Trustees that enabled
Trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised Funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised Funds.
As approved by the Board of Trustees, a complex-wide fee schedule for all Funds
managed by the Adviser and its affiliates went into effect on August 1, 2004.
The implementation of this complex-wide fee schedule is expected to result in a
marginal immediate decrease in the rates (approximately .004%) at which
management fees are to be paid by the Funds. As assets in the Nuveen Fund
complex grow, the management fee rates to be paid by the Funds will decrease
further. Under no circumstances will the complex-wide fee schedule result in an
increase in the rates at which management fees would be paid by the Funds if the
complex-wide fee schedule were not implemented.
For the first eight years of Insured Florida Tax-Free Advantage's (NWF)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets (including net assets attributable to Preferred
shares), for fees and expenses in the amounts and for the time periods set forth
below:
YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
- --------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured Florida Tax-Free Advantage (NWF)
for any portion of its fees and expenses beyond November 30, 2010.
6. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on August 2, 2004, to shareholders of record
on July 15, 2004, as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- --------------------------------------------------------------------------------
Dividend per share $.0845 $.0830 $.0800 $.0720
================================================================================
39
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
FLORIDA INVESTMENT
QUALITY (NQF)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 $15.87 $1.06 $ (.84) $(.06) $(.01) $ .15 $(1.01) $(.20) $(1.21)
2003 15.19 1.10 .76 (.07) (.01) 1.78 (.97) (.13) (1.10)
2002 14.76 1.13 .41 (.11) (.02) 1.41 (.92) (.06) (.98)
2001 14.24 1.19 .52 (.30) -- 1.41 (.89) -- (.89)
2000 15.03 1.21 (.71) (.29) (.01) .20 (.94) (.03) (.97)
FLORIDA QUALITY
INCOME (NUF)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 15.75 1.04 (.78) (.05) (.01) .20 (1.00) (.14) (1.14)
2003 15.23 1.08 .71 (.07) (.02) 1.70 (1.00) (.18) (1.18)
2002 15.02 1.18 .14 (.12) (.01) 1.19 (.94) (.04) (.98)
2001 14.57 1.20 .43 (.30) -- 1.33 (.88) -- (.88)
2000 15.37 1.19 (.77) (.29) -- .13 (.91) -- (.91)
INSURED FLORIDA
PREMIUM INCOME (NFL)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 16.57 1.02 (.88) (.05) (.01) .08 (.96) (.10) (1.06)
2003 15.66 1.04 .89 (.08) -- 1.85 (.93) (.01) (.94)
2002 15.30 1.07 .27 (.12) -- 1.22 (.86) -- (.86)
2001 14.25 1.09 1.02 (.28) -- 1.83 (.78) -- (.78)
2000 14.86 1.06 (.59) (.28) -- .19 (.80) -- (.80)
INSURED FLORIDA
TAX-FREE ADVANTAGE (NWF)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 14.75 .93 (.99) (.05) -- (.11) (.86) -- (.86)
2003(a) 14.33 .40 .70 (.03) -- 1.07 (.43) -- (.43)
====================================================================================================================================
Total Returns
-------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
===================================================================================
FLORIDA INVESTMENT
QUALITY (NQF)
- -----------------------------------------------------------------------------------
Year Ended 6/30:
2004 $ -- $14.81 $14.0300 (9.61)% .95%
2003 -- 15.87 16.7500 13.28 12.02
2002 -- 15.19 15.8300 13.27 9.77
2001 -- 14.76 14.8900 12.03 10.11
2000 (.02) 14.24 14.1250 (5.54) 1.39
FLORIDA QUALITY
INCOME (NUF)
- -----------------------------------------------------------------------------------
Year Ended 6/30:
2004 -- 14.81 13.8400 (10.29) 1.29
2003 -- 15.75 16.6000 11.56 11.45
2002 -- 15.23 15.9900 13.80 8.15
2001 -- 15.02 14.9700 12.58 9.37
2000 (.02) 14.57 14.1250 (4.28) .87
INSURED FLORIDA
PREMIUM INCOME (NFL)
- -----------------------------------------------------------------------------------
Year Ended 6/30:
2004 -- 15.59 14.2400 (11.70) .46
2003 -- 16.57 17.2200 16.05 12.10
2002 -- 15.66 15.7100 14.29 8.13
2001 -- 15.30 14.5400 18.32 13.09
2000 -- 14.25 13.0000 (5.17) 1.47
INSURED FLORIDA
TAX-FREE ADVANTAGE (NWF)
- -----------------------------------------------------------------------------------
Year Ended 6/30:
2004 -- 13.78 12.9400 (13.56) (.79)
2003(a) (.22) 14.75 15.8700 8.82 6.08
===================================================================================
Ratios/Supplemental Data
----------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
----------------------------- -------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
=========================================================================================================================
FLORIDA INVESTMENT
QUALITY (NQF)
- -------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 $245,045 1.25% 6.92% 1.25% 6.92% 23%
2003 261,856 1.20 7.00 1.19 7.01 16
2002 249,833 1.26 7.53 1.23 7.56 34
2001 242,223 1.33 8.10 1.29 8.14 28
2000 233,290 1.26 8.45 1.24 8.48 16
FLORIDA QUALITY
INCOME (NUF)
- -------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 211,659 1.25 6.83 1.25 6.83 38
2003 224,311 1.24 6.92 1.23 6.94 28
2002 216,044 1.28 7.81 1.26 7.83 30
2001 212,618 1.33 8.00 1.25 8.08 20
2000 206,212 1.26 8.08 1.23 8.10 20
INSURED FLORIDA
PREMIUM INCOME (NFL)
- -------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 223,965 1.16 6.36 1.15 6.36 38
2003 237,490 1.18 6.41 1.16 6.42 14
2002 223,961 1.21 6.89 1.21 6.89 8
2001 218,642 1.27 7.22 1.26 7.23 20
2000 203,591 1.30 7.53 1.29 7.54 22
INSURED FLORIDA
TAX-FREE ADVANTAGE (NWF)
- -------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 53,504 1.25 6.04 .74 6.56 130
2003(a) 57,223 1.15* 4.18* .67* 4.66* 46
=========================================================================================================================
Preferred Shares at End of Period
------------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
=======================================================================
FLORIDA INVESTMENT
QUALITY (NQF)
- -----------------------------------------------------------------------
Year Ended 6/30:
2004 $132,000 $25,000 $71,410
2003 132,000 25,000 74,594
2002 132,000 25,000 72,317
2001 132,000 25,000 70,876
2000 132,000 25,000 69,184
FLORIDA QUALITY
INCOME (NUF)
- -----------------------------------------------------------------------
Year Ended 6/30:
2004 117,000 25,000 70,226
2003 117,000 25,000 72,930
2002 117,000 25,000 71,163
2001 117,000 25,000 70,431
2000 117,000 25,000 69,062
INSURED FLORIDA
PREMIUM INCOME (NFL)
- -----------------------------------------------------------------------
Year Ended 6/30:
2004 111,000 25,000 75,443
2003 111,000 25,000 78,489
2002 111,000 25,000 75,442
2001 111,000 25,000 74,244
2000 111,000 25,000 70,854
INSURED FLORIDA
TAX-FREE ADVANTAGE (NWF)
- -----------------------------------------------------------------------
Year Ended 6/30:
2004 29,000 25,000 71,124
2003(a) 29,000 25,000 74,330
=======================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income at net asset value,
reinvested capital gains distributions at net asset value, if any, and
changes in Common share net asset value per share. Total returns are not
annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares, where applicable.
(a) For the period November 21, 2002 (commencement of operations) through June
30, 2003.
See accompanying notes to financial statements.
40-41 SPREAD
Board Members
AND OFFICERS
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Funds is currently set
at seven. None of the board members who are not "interested" persons of the
Funds has ever been a director or employee of, or consultant to, Nuveen or its
affiliates. The names and business addresses of the board members and officers
of the Funds, their principal occupations and other affiliations during the past
five years, the number of portfolios each oversees and other directorships they
hold are set forth below.
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
- ------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS:
- ------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger (1) Chairman of 1994 Chairman and Director (since 1996) of Nuveen Investments, 145
3/28/49 the Board Inc. and Nuveen Investments, LLC; Director (since 1992) and
333 W. Wacker Drive and Trustee Chairman (since 1996) of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp.; Chairman and Director (since
1997) of Nuveen Asset Management, Inc.; Director (since
1996) of Institutional Capital Corporation; Chairman and
Director (since 1999) of Rittenhouse Asset Management, Inc.;
Chairman of Nuveen Investments Advisers Inc. (since 2002).
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
- ------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Board member 1997 Private Investor and Management Consultant. 145
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Board member 1993 Retired (1989) as Senior Vice President of The Northern 145
7/29/34 Trust Company; Director, Community Advisory Board for
333 W. Wacker Drive Highland Park and Highwood, United Way of the North
Chicago, IL 60606 Shore (since 2002).
- ------------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private philanthropic 145
10/22/48 corporation (since 1996); Director and Vice Chairman, United
333 W. Wacker Drive Fire & Casualty Company; formerly Director, Federal Reserve
Chicago, IL 60606 Bank of Chicago; formerly, President and Chief Operating
Officer, SCI Financial Group, Inc., a regional financial
services firm.
- ------------------------------------------------------------------------------------------------------------------------------------
William C. Hunter Board member 2004 Dean and Distinguished Professor of Finance, School of 145
3/16/48 Business at the University of Connecticut (since 2003);
333 W. Wacker Drive previously Senior Vice President and Director of Research
Chicago, IL 60606 at the Federal Reserve Bank of Chicago (1995-2003);
Director, Credit Research Center at Georgetown University;
Director of Xerox Corporation (since 2004).
42
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
- ------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Board member 1997 Senior Partner and Chief Operating Officer, Miller-Valentine 145
9/24/44 Group, Vice President, Miller-Valentine Realty, a construction
333 W. Wacker Drive company; Chair, Miami Valley Hospital; Chair, Dayton
Chicago, IL 60606 Development Coalition; formerly, Member, Community
Advisory Board, National City Bank, Dayton, Ohio and
Business Advisory Council, Cleveland Federal Reserve Bank.
- ------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Board member 1997 Executive Director, Gaylord and Dorothy Donnelley 145
12/29/47 Foundation (since 1994); prior thereto, Executive Director,
333 W. Wacker Drive Great Lakes Protection Fund (from 1990 to 1994)
Chicago, IL 60606
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
- ------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 145
9/9/56 Administrative Associate General Counsel, formerly, Vice President and
333 W. Wacker Drive Officer Assistant General Counsel of Nuveen Investments, LLC;
Chicago, IL 60606 Managing Director (since 2002), General Counsel and
Assistant Secretary, formerly, Vice President of Nuveen
Advisory Corp. and Nuveen Institutional Advisory Corp.;
Managing Director (since 2002), Assistant Secretary and
Associate General Counsel, formerly, Vice President (since
2000), of Nuveen Asset Management, Inc. Assistant
Secretary of Nuveen Investments, Inc. (since 1994); Assistant
Secretary of NWQ Investment Management Company, LLC
(since 2002); Vice President and Assistant Secretary of
Nuveen Investments Advisers Inc. (since 2002); Managing
Director, Associate General Counsel and Assistant Secretary
of Rittenhouse Asset Management, Inc. (since 2003);
Chartered Financial Analyst.
- ------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant Vice 145
2/3/66 and Assistant President (since 2000), previously, Associate of Nuveen
333 W. Wacker Drive Secretary Investments, LLC.
Chicago, IL 60606
43
Board Members
AND OFFICERS (CONTINUED)
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999), 145
11/28/67 and Treasurer prior thereto, Assistant Vice President (since 1997); Vice
333 W. Wacker Drive President and Treasurer of Nuveen Investments, Inc. (since
Chicago, IL 60606 1999); Vice President and Treasurer of Nuveen Advisory Corp.
and Nuveen Institutional Advisory Corp (since 1999); Vice
President and Treasurer of Nuveen Asset Management, Inc.
(since 2002) and of Nuveen Investments Advisers Inc. (since
2002); Assistant Treasurer of NWQ Investment Management
Company, LLC (since 2002); Vice President and Treasurer of
Nuveen Rittenhouse Asset Management, Inc. (since 2003);
Chartered Financial Analyst.
- ------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 2000 Vice President (since 2002) and Assistant General Counsel 145
9/24/64 and Secretary (since 1998); formerly, Assistant Vice President (since 1998)
333 W. Wacker Drive of Nuveen Investments, LLC; Vice President (since 2002)
Chicago, IL 60606 and Assistant Secretary (since 1998), formerly Assistant
Vice President of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.
- ------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Managing Director (since 2004) formerly, Vice President of 145
10/24/45 Nuveen Investments, LLC; Managing Director (since 2004)
333 W. Wacker Drive formerly, Vice President (since 1998) of Nuveen Advisory
Chicago, IL 60606 Corp. and Nuveen Institutional Advisory Corp.
- ------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen Investments, 145
3/2/64 LLC; Managing Director (since 2001), formerly Vice President
333 W. Wacker Drive of Nuveen Advisory Corp. and Nuveen Institutional Advisory
Chicago, IL 60606 Corp. (since 1995); Managing Director of Nuveen Asset
Management, Inc. (since 2001); Vice President of Nuveen
Investment Advisers Inc. (since 2002); Chartered Financial
Analyst.
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 145
5/31/54 and Controller of Nuveen Investments, LLC and Vice President and Funds
333 W. Wacker Drive Controller (since 1998) of Nuveen Investments, Inc.;
Chicago, IL 60606 Certified Public Accountant.
44
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 145
3/22/63 LLC, previously Assistant Vice President (since 1999);
333 W. Wacker Drive prior thereto, Associate of Nuveen Investments, LLC;
Chicago, IL 60606 Certified Public Accountant.
- ------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President (since 1999), previously, Assistant Vice 145
8/27/61 President (since 1993) of Nuveen Investments, LLC.
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 145
7/27/51 and Assistant Counsel of Nuveen Investments, LLC; Vice President and
333 W. Wacker Drive Secretary Assistant Secretary of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp.; Assistant Secretary of Nuveen
Investments, Inc. and (since 1997) Nuveen Asset Management,
Inc.; Vice President (since 2000), Assistant Secretary and
Assistant General Counsel (since 1998) of Rittenhouse Asset
Management, Inc.; Vice President and Assistant Secretary of
Nuveen Investments Advisers Inc. (since 2002); Assistant
Secretary of NWQ Investment Management Company, LLC
(since 2002).
- ------------------------------------------------------------------------------------------------------------------------------------
Edward F. Neild, IV Vice President 1996 Managing Director (since 2002) of Nuveen Investments, LLC; 145
7/7/65 Managing Director (since 1997), formerly Vice President
333 W. Wacker Drive (since 1996) of Nuveen Advisory Corp. and Nuveen Institutional
Chicago, IL 60606 Advisory Corp.; Managing Director of Nuveen Asset Management,
Inc. (since 1999). Chartered Financial Analyst.
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, because he is an officer and board member
of the Adviser.
(2) Board members serve an indefinite term until his/her successor is elected.
The year first elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex.
(3) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
45
Reinvest Automatically
EASILY AND CONVENIENTLY
SIDEBAR TEXT: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
the shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution had been
paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
46
Other Useful
INFORMATION
PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling Nuveen Investments at (800) 257-8787; and (ii)
on the Commission's website at http://www.sec.gov.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of a bond or bond fund's
sensitivity to changes in interest rates. Generally, the longer a bond or fund's
duration, the more the price of the bond or fund will change as interest rates
change. Leverage-adjusted duration takes into account the leveraging process for
a Fund and therefore is generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A fund's NAV is calculated by subtracting the liabilities
of the fund from its total assets and then dividing the remainder by the number
of shares outstanding. Fund NAVs are calculated at the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the fiscal year ended June 30, 2004. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
47
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing $100 billion in assets, Nuveen Investments offers access to a number of
different asset classes and investing solutions through a variety of products.
Nuveen Investments markets its capabilities under four distinct brands: Nuveen,
a leader in tax-free investments; NWQ, a leader in value-style equities;
Rittenhouse, a leader in growth-style equities; and Symphony, a leading
institutional manager of market-neutral alternative investment portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers and for
a prospectus, where applicable, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information carefully before you invest.
Learn more
about Nuveen Funds at
WWW.NUVEEN.COM/ETF
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
EAN-A-0604D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. The registrant has posted such code of
ethics on its website at www.nuveen.com/etf.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's board of directors determined that the registrant had at least
one "audit committee financial expert" (as defined in Item 3 of Form N-CSR)
serving on its Audit Committee. The registrant's audit committee financial
expert was William E. Bennett, who was "independent" for purposes of Item 3 of
Form N-CSR.
Although Mr. Bennett served as the audit committee financial expert for the
majority of the reporting period, he unexpectedly resigned from the Board
effective April 30, 2004. Since that time, the Audit Committee determined that
Jack B. Evans, the Chairman of the Audit Committee, qualifies as an audit
committee financial expert and recommended to the full Board that he be
designated as such. On July 26, 2004, the full Board voted to so designate Mr.
Evans. Accordingly for this reporting period, the registrant did not have a
designated "audit committee financial expert" from April 30, 2004 to the end of
the reporting period on June 30, 2004.
Mr. Bennett was formerly Executive Vice President and Chief Credit Officer of
First Chicago Corporation and its principal subsidiary, The First National Bank
of Chicago. As part of his role as Chief Credit Officer, Mr. Bennett set policy
as to accrual of assets/loans; designated performing/non-performing assets; set
the level of reserves against the credit portfolo; and determined the carrying
value of credit related assets and exposure. Among other things, Mr. Bennett was
also responsible for the oversight of the internal analysis function including
setting ground rules for the review and preparation of financial analysis and
financial statements for use in making credit and risk decisions for clients.
Mr. Bennett has significant experience reviewing, analyzing and evaluating
financial statements of domestic and international companies in a variety of
industries with complex accounting issues.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen Insured Florida Tax-Free Advantage Municipal Fund
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP entered into on or after May 6, 2003, the
Audit Committee approved in advance all audit services and non-audit services
that Ernst & Young LLP provided to the Fund, except for those non-audit services
that were subject to the pre-approval exception under Rule 2-01 of Regulation
S-X (the "pre-approval exception"). The pre-approval exception for services
provided directly to the Fund waives the pre-approval requirement for services
other than audit, review or attest services if: (A) the aggregate amount of all
such services provided constitutes no more than 5% of the total amount of
revenues paid by the Fund during the fiscal year in which the services are
provided; (B) the Fund did not recognize the services as non-audit services at
the time of the engagement; and (C) the services are promptly brought to the
Audit Committee's attention, and the Committee (or its delegate) approves the
services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
TABLE A
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND BILLED TO FUND BILLED TO FUND BILLED TO FUND
- ------------------------------------------------------------------------------------------------------------------------------------
June 30, 2004 $ 7,298 $ 0 $ 378 $ 2,500
- ------------------------------------------------------------------------------------------------------------------------------------
Percentage approved N/A 0% 0% 0%
pursuant to
pre-approval
exception
- ------------------------------------------------------------------------------------------------------------------------------------
June 30, 2003 $ 8,400 $ 0 $ - $ 900
- ------------------------------------------------------------------------------------------------------------------------------------
Percentage approved N/A 0% 0% 0%
pursuant to
pre-approval
exception
- ------------------------------------------------------------------------------------------------------------------------------------
The above "Tax Fees" were billed for professional services for tax advice, tax
compliance and tax planning.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Advisory Corp. ("NAC" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAC ("Control Affiliate") that
provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for
engagements directly related to the Fund's operations and financial reporting,
during the Fund's last two full fiscal years.
The table also shows the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
- ------------------------------------------------------------------------------------------------------------------------------------
June 30, 2004 $ 0 $ 0 $ 0
- ------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
- ------------------------------------------------------------------------------------------------------------------------------------
June 30, 2003 $ 0 $ 0 $ 0
- ------------------------------------------------------------------------------------------------------------------------------------
Percentage approved N/A N/A N/A
pursuant to
pre-approval
exception
- ------------------------------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. For
engagements entered into on or after May 6, 2003, the Audit Committee is
required to pre-approve non-audit services that Ernst & Young LLP provides to
the Adviser and any Affiliated Fund Services Provider, if the engagement related
directly to the Fund's operations and financial reporting (except for those
subject to the de minimis exception described above). The Audit Committee
requested and received information from Ernst & Young LLP about any non-audit
services that Ernst & Young LLP rendered during the Fund's last fiscal year to
the Adviser and any Affiliated Fund Service Provider. The Committee considered
this information in evaluating Ernst & Young LLP independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
- ------------------------------------------------------------------------------------------------------------------------------------
June 30, 2004 $ 2,878 $ 0 $ 0 $ 2,878
June 30, 2003 $ 900 $ 0 $ 0 $ 900
Audit Committee Pre-Approval Policies and Procedures. Generally, the audit
committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the audit committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the audit committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the audit committee at
the next audit committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable at this time.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable at this time.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
In the rare event that a municipal issuer held by the Fund were to issue a proxy
or that the Fund were to receive a proxy issued by a cash management security,
the Adviser would either engage an independent third party to determine how the
proxy should be voted or vote the proxy with the consent, or based on the
instructions, of the Fund's Board of Directors or Trustees or its
representative. In the case of a conflict of interest, the proxy would be
submitted to the applicable Fund's Board to determine how the proxy should be
voted. A member of the Adviser's legal department would oversee the
administration of the voting, and ensure that records were maintained in
accordance with Rule 204-2(c)(2) under the Investment Advisers Act of 1940 (17
CFR 275.204-2(c)(2)), reports were filed with the SEC on Form N-PX, and the
results were provided to the Board of Directors or Trustees and made available
to shareholders as required by applicable rules.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable to this regisrant.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
In the event of a vacancy on the Board, the nominating and governance committee
receives suggestions from various sources, including shareholders, as to
suitable candidates. Suggestions should be sent in writing to Lorna Ferguson,
Vice President for Board Relations, Nuveen Investments, 333 West Wacker Drive,
Chicago, IL 60606. The nominating and governance committee sets appropriate
standards and requirements for nominations for new directors and reserves the
right to interview all candidates and to make the final selection of any new
directors.
ITEM 10. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's last
fiscal half-year (the registrant's second fiscal half-year in the case
of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because posted on registrant's website at www.nuveen.com/etf.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable
at this time.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Insured Florida Tax-Free Advantage Municipal Fund
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: September 9, 2004
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(Principal Executive Officer)
Date: September 9, 2004
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date: September 9, 2004
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.