UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21215
---------------------
Nuveen Insured Florida Tax-Free Advantage Municipal Fund
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: June 30
------------------
Date of reporting period: June 30, 2005
------------------
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, 2005
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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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the 12-month period covered by this
report your Fund continued to provide you with monthly tax-free income and an
attractive total return. For more details about the management strategy and
performance of your Fund, please see the Portfolio Manager's Comments and
Performance Overview sections of this report.
As I noted in my last letter to you, many market observers are wondering whether
longer-term interest rates will soon begin to rise substantially, mirroring the
rise that has taken place over the past year in shorter-term rates. If
longer-term rates do begin to rise significantly, some have suggested that this
would be a signal to begin adjusting your holdings of fixed-income investments.
"IN FACT, A WELL-DIVERSIFIED PORTFOLIO MAY ACTUALLY HELP TO REDUCE YOUR OVERALL
INVESTMENT RISK OVER THE LONG TERM."
Nobody knows what the market will do in the future. But from our experience, we
do know that a well-balanced portfolio, structured and carefully monitored with
the help of a trusted investment professional, can be an important component in
helping you achieve your long-term financial goals. In fact, a well-diversified
portfolio may actually help to reduce your overall investment risk over the long
term. That is one reason why we believe that a municipal bond investment like
your Nuveen Fund can be an important building block in a comprehensive
investment program designed to perform well in a variety of market conditions.
As in past reports, I urge you to 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 - see the inside front cover of this report
for instructions.
Earlier in 2005, The St. Paul Travelers Companies, Inc., which owned 79% of
Nuveen Investments, Inc. (the parent of your Fund's investment adviser), sold a
substantial portion of its stake in Nuveen. More recently, St. Paul sold the
balance of its shares in Nuveen to us or to others. Please be assured that these
transactions only affect Nuveen's corporate structure, and they do not have any
impact on the investment objectives or management of your Fund.
At Nuveen Investments, our mission continues to be to assist you and your
financial advisor by offering investment services and products that can help you
to secure your financial objectives. We are grateful that you have chosen us as
a partner as you pursue your financial goals, and 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 15, 2005
Nuveen Florida Municipal Closed-End Exchange-Traded Funds
(NQF, NUF, NFL, NWF)
Portfolio Manager's
COMMENTS
Portfolio manager Cathryn Steeves reviews the economic and municipal market
environments, key investment strategies and the annual performance of these
Florida Funds. Cathryn, who joined Nuveen in 1996, assumed portfolio management
responsibility for NQF and NUF in January 2005 and for NFL and NWF in May 2005.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE ANNUAL
REPORTING PERIOD ENDED JUNE 30, 2005?
One factor affecting nearly all fixed-income investments over this reporting
period was the general flattening of the yield curve. Between June 30, 2004, and
June 30, 2005, the Federal Reserve implemented nine quarter-point increases in
the fed funds rate, raising this short-term rate benchmark to 3.25% from 1.00%.
(On August 9, 2005, after the close of this reporting period, the fed funds rate
was raised to 3.50%.) These fed funds rate increases led to increases in many
shorter-term municipal market rates over the 12-month reporting period. At the
same time, longer-term yields declined. The yield on the benchmark 10-year U.S.
Treasury note stood at 3.92% on June 30, 2005, compared with 4.59% one year
earlier. Longer-term yields in the municipal market followed a similar pattern.
The yield of the Bond Buyer 25 Revenue Bond Index, a widely-followed measure of
longer-term municipal market rates, declined by approximately 60 basis points
during this 12-month reporting period.
This rise in shorter-term rates and decline in longer-term rates generally
helped the performance of bonds with longer effective maturities and tended to
hurt the performance of securities with shorter maturities or short call dates.
Despite the increases in shorter-term rates and an upsurge in energy costs, the
economic expansion continued through the reporting period. After expanding at an
annualized rate of 4.0% in the third quarter of 2004, the U.S. Gross Domestic
Product (GDP) grew by an annualized 3.8% in the fourth quarter of 2004 and 3.8%
again in the first three months of 2005. (On July 29, 2005, after the close of
this reporting period, the Commerce Department said the GDP grew at an
annualized rate of 3.4% in the second quarter of the year.)
The year-over-year increase in the Consumer Price Index (CPI) as of June 30,
2005, was a relatively mild 2.5%. The national unemployment rate dropped to 5.0%
in June 2005, its lowest level since September 2001. Over the 12-month period,
municipal new issue
4
supply nationwide remained strong, as $377.1 billion in new securities came to
market. The flattening yield curve increased the attractiveness of refundings,
which were 57% higher during January-June 2005 than in the same six-month period
in 2004.
HOW ABOUT ECONOMIC AND MARKET CONDITIONS IN FLORIDA?
Florida's service-based economy continued to exhibit robust expansion during
this period, supported by strong employment and rapid population growth. The
state's unemployment rate stood at 3.9% in June 2005, down from 4.8% in June
2004, primarily due to Florida's high concentration of jobs in industries such
as tourism and administrative support services. Although Florida was hit by four
hurricanes in August and September 2004, tourism in particular has rebounded
well. In January 2005, Moody's upgraded Florida's general obligation debt to Aa1
from Aa2, with S&P following suit in February (to AAA from AA+) and Fitch in
March (to AA+ from AA). Florida is one of only 10 states to carry an AAA rating
from S&P, and the recent upgrades reflect the state's strong, conservative
financial and budget management policies, significant reserves, and favorable
economic trends that are among the strongest in the nation. During the 12-month
period ended June 30, 2005, municipal issuance in Florida rose 12% from that of
the previous 12 months, totaling $17.3 billion. Much of the new debt was highly
rated and issued for the construction of local primary and secondary schools and
for higher education purposes.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE FUNDS DURING THE 12 MONTHS ENDED
JUNE 30, 2005?
With many market participants anticipating higher interest rates, our focus in
these Funds throughout this period centered on finding bonds that we believed
would add immediate value to the Funds' portfolios and that, in our judgment,
also had the potential to perform well under a variety of future market
scenarios, regardless of economic or interest rate trends.
In general, our purchase activity in these Funds emphasized bonds in the
intermediate part of the yield curve -- that is, bonds that mature in 10 to 20
years. In our opinion, this part of the curve generally offered more attractive
opportunities and the best value during this period. We also continued to place
an emphasis on purchasing premium bonds --those with prices above par and
coupons above current market rates. These bonds have
5
been in great demand recently, since historically they have held their value
better than current coupon bonds when interest rates rise.
As noted earlier, Florida experienced a meaningful increase in municipal
issuance during this period, especially in the first half of 2005. Reflecting
the generally high credit quality of new issue supply, the majority of our
purchases over this time were of insured or highly rated bonds. As a result, the
AAA rated holdings in the two uninsured Funds, NQF and NUF, increased over this
period. Two other factors also helped strengthen the overall credit quality of
these Funds. First, we significantly reduced our position in multifamily housing
bonds in these two Funds when the opportunity arose to sell at attractive
prices. Second, both NQF and NUF had some relatively concentrated positions in
certain lower-rated credits, and we selectively trimmed these positions to
enhance overall diversification. In both instances, the proceeds from the sales
were redeployed into highly-rated securities.
At the other end of the credit spectrum, we also were looking for opportunities
to purchase BBB or non-rated bonds, even though the Florida municipal market did
not provide many attractive occasions to do so during this period. However, we
did purchase some non-rated bonds issued by St. John's County for the
Presbyterian Retirement Communities for both NQF and NUF.
Most of the new purchases in the two insured Funds, NFL and NWF, were financed
with the proceeds from sales of older pre-refunded bonds and bonds with shorter
effective maturities. These actions helped us improve the diversification and
call protection of these Funds, and helped us maintain an overall positioning on
the yield curve that we believed would help them perform well under a variety of
market conditions.
During this period, we also worked to reduce the interest rate risk in the
portfolio of NWF by using forward interest rate swaps, a type of derivative
financial instrument, as a hedge against rising rates. It is important to note
that the hedge was not used in an attempt to profit from correctly predicting
the timing and direction of interest rate movements. Instead, our sole objective
was to reduce the duration of the Fund (and therefore its price sensitivity to
interest rate changes) without having a negative impact on the Fund's income
stream or common share dividend over the short term. The gain or loss
6
from the Fund's hedging activity is reflected as an addition or subtraction to
the Fund's net asset value (NAV) as the market value of the hedge fluctuates.
During this period, the hedge was effective in achieving its intended goal of
helping to reduce the NAV volatility of the Fund. However, it did have a
negative impact on the Fund's total return during this period because generally
declining long-term interest rates caused the value of the hedge to decline as
the value of the Fund's portfolio rose.
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as for comparative indexes and
averages, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE
For periods ended 6/30/05
FLORIDA FUNDS 1-YEAR 5-YEAR 10-YEAR
- --------------------------------------------------------------------------------
NQF 12.40% 8.97% 6.95%
- --------------------------------------------------------------------------------
NUF 12.89% 8.55% 6.79%
- --------------------------------------------------------------------------------
Lehman Brothers Municipal
Bond Index1 8.24% 6.88% 6.38%
- --------------------------------------------------------------------------------
INSURED FLORIDA FUNDS
- --------------------------------------------------------------------------------
NFL 11.33% 8.92% 7.43%
- --------------------------------------------------------------------------------
NWF 13.18% NA NA
- --------------------------------------------------------------------------------
Lehman Brothers Insured
Municipal Bond Index1 8.62% 7.27% 6.60%
- --------------------------------------------------------------------------------
Lipper Florida
Municipal Debt Funds
Average2 12.01% 8.52% 6.92%
- --------------------------------------------------------------------------------
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the 12 months ended June 30, 2005, the total returns on NAV for NQF and NUF
outperformed the return of the Lehman Brothers Municipal Bond Index, while for
the same period NFL and NWF bested the return of the Lehman Brothers Insured
Municipal Bond Index. NQF, NUF and NWF also outperformed the average return for
the Lipper Florida Fund peer group, while NFL's return trailed the group
average.
1 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal bonds,
and the Lehman Brothers Insured Municipal Bond Index is an unleveraged,
unmanaged national index containing a broad range of insured municipal
bonds. Results for the Lehman indexes do not reflect any expenses. It is not
possible to invest directly in either index.
2 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, 18 funds; 5 years, 12 funds; and 10 years,
10 funds. Fund and Lipper returns assume reinvestment of dividends.
7
One of the primary factors benefiting the 12-month performance of these Funds
relative to those of their respective unleveraged, unmanaged Lehman Brothers
indexes was the Funds' use of financial leverage. While leverage can add
volatility to the Funds' NAVs and share prices, especially during periods when
interest rates rise, this strategy also can provide opportunities for additional
income and total return for common shareholders when short-term interest rates
remain relatively low and long-term rates fall or remain fairly constant.
As noted earlier, yields fell -- and therefore prices rose -- for many
longer-term bonds over the course of this reporting period. More relative
exposure to bonds at the longer end of the yield curve helped the performances
of NWF and, to a lesser extent, NQF and NUF, over this period. Conversely, the
performance of NFL was constrained by greater exposure to the short end of the
municipal market yield curve.
The two noninsured Funds, NQF and NUF, also benefited from their allocations to
lower quality bonds during this period, because bonds rated BBB generally
outperformed higher credit quality sectors as the economy improved and demand
for these bonds increased. Among the sectors making positive contributions to
these Funds' 12-month returns were those that tended to have a greater number of
lower-quality bonds, such as healthcare (including hospitals and long-term care
facilities). Both NUF and NQF had relatively large positions in healthcare
bonds. NQF also held 1.3% of its portfolio in bonds backed by the 1998 master
tobacco settlement agreement, which produced solid performance during this
period, as the litigation environment improved and supply/demand dynamics drove
tobacco bond prices higher. NWF, which is an insured Fund but can invest up to
20% of its assets in uninsured investment-grade quality securities, also held
some lower-rated healthcare issues.
8
During this period, the Funds' holdings of older pre-refunded bonds tended to
underperform the general municipal market, due primarily to the shorter
effective maturities of these bonds. This was especially true in NQF and NFL.
Housing was another sector that lagged the market during this period, largely as
the result of the increased risk of prepayments and bond calls in the current
interest rate environment. Both NQF and NUF began this reporting period with
significant exposure to the housing sector, and while these holdings were
reduced during the course of the reporting period they still had a restraining
effect on the performance of these two Funds for the period.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
JUNE 30, 2005?
As of June 30, 2005, the two noninsured Funds continued to offer excellent
credit quality, with allocations of bonds rated AAA/U.S. guaranteed and AA
ranging from 80% in NUF to 84% in NQF. NFL continued to be 100% invested in
insured and/or U.S. guaranteed securities, while NWF, which can invest up to 20%
of its assets in uninsured investment-grade quality securities, had allocated
88% of its portfolio to AAA insured bonds as of the end of the period.
As of June 30, 2005, potential call exposure for the period from July 2005
through the end of 2006 ranged from 0% in NWF to 5% in NQF, and 8% in NUF and
NFL. The number of actual bond calls in all of these Funds depends largely on
future market interest rates.
9
Dividend and Share Price
INFORMATION
All of these Funds use leverage to provide opportunities for additional income
for common shareholders. 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, leveraged Funds generally pay lower dividends
to MuniPreferred shareholders, which can leave more earnings to support common
share dividends. However, when short-term interest rates rise, as they did
during this reporting period, the Funds' borrowing costs also rise. While
leveraging can still provide benefits for common shareholders as short-term
rates rise, the extent of the benefit may be less. Over the 12-month period
ended June 30, 2005, NFL experienced two monthly dividend cuts, while the
monthly dividends of NQF and NUF were reduced three times. NWF had four monthly
dividend reductions during this period.
In addition, due to normal portfolio management activity, common shareholders of
NFL received a long-term capital gains distribution of $0.1012 per share and a
net ordinary income distribution of $0.01 per share at the end of December 2004.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of June 30, 2005, NQF, NUF
and NFL had positive UNII balances for both financial statement and tax
purposes. NWF had a negative UNII balance for financial statement purposes and a
positive UNII balance for tax purposes.
At the end of the reporting period, the Funds' shares were trading at premiums
or discounts to their NAVs as shown in the accompanying chart:
6/30/05 12-MONTH AVERAGE
PREMIUM/DISCOUNT DISCOUNT
- --------------------------------------------------------------------------------
NQF -0.96% -0.12%
- --------------------------------------------------------------------------------
NUF -2.86% -1.57%
- --------------------------------------------------------------------------------
NFL +2.95% -1.90%
- --------------------------------------------------------------------------------
NWF -3.39% -3.69%
- --------------------------------------------------------------------------------
10
Nuveen Florida Investment Quality Municipal Fund
NQF
Performance
OVERVIEW As of June 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 75%
AA 9%
A 10%
BBB 4%
NR 2%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jul 0.0845
Aug 0.0845
Sep 0.0845
Oct 0.0845
Nov 0.0845
Dec 0.0815
Jan 0.0815
Feb 0.0815
Mar 0.0775
Apr 0.0775
May 0.0775
Jun 0.0735
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/04 14.34
14.42
14.35
14.45
14.48
14.62
14.61
14.74
14.6
14.69
14.68
14.65
14.82
14.67
14.62
14.63
14.69
14.77
14.64
14.82
14.8
14.8
14.8
14.87
14.91
14.81
15.06
15.07
15.02
15.03
15.04
15.29
15.07
15.19
15.19
15.18
15.25
15.48
15.55
15.85
15.79
15.53
15.61
15.73
15.46
15.4
15.48
15.5
15.47
15.59
15.7
15.76
15.77
15.75
15.7
15.51
15.31
15.29
15.41
15.43
15.34
15.46
15.55
15.34
15.33
15.22
15.4
15.41
15.4
15.68
15.94
15.75
15.72
15.56
15.7
15.7
15.66
15.59
15.74
15.95
15.81
15.79
15.76
15.73
15.7
15.73
15.81
16.11
16.15
16.37
15.99
15.68
15.62
15.59
15.58
15.67
15.7
15.71
15.66
15.73
15.67
15.49
15.53
15.45
15.64
15.52
15.39
15.45
15.25
15.37
15.24
15.33
15.25
15.3
15.27
15.3
15.27
15.45
15.14
15.26
15.32
15.19
15.13
15.1
15.14
15.05
15.05
15.17
15.21
15.31
15.26
15.35
15.65
15.46
15.7
15.46
15.34
15.27
15.19
15.29
15.28
15.39
15.52
15.4
15.42
15.51
15.59
15.83
16.05
16.04
16.15
16.11
16.38
16.2
16.11
16.31
16.26
16.11
15.87
15.91
15.7
15.65
15.93
15.74
15.72
15.89
15.94
15.97
15.93
15.86
15.81
16
15.95
15.97
16
15.9
15.63
15.51
15.33
15.35
15.23
15.26
15.18
15
14.5
14.5
14.32
14.27
14.35
14.55
14.64
14.79
14.75
14.85
15.05
14.85
14.88
14.97
14.84
14.75
14.8
14.82
14.83
14.77
14.73
14.82
14.78
14.74
14.73
14.82
14.83
14.83
14.99
14.99
14.92
14.97
14.93
15.03
15.22
15.15
15.2
15.29
15.32
15.27
15.58
15.44
15.42
15.59
15.56
15.63
15.61
15.71
15.79
15.83
15.83
15.92
15.95
15.94
15.85
15.76
15.61
15.51
15.58
15.45
15.52
15.49
15.4
15.49
15.59
15.53
15.54
15.52
15.49
15.48
6/30/05 15.48
FUND SNAPSHOT
- ------------------------------------
Common Share Price $15.48
- ------------------------------------
Common Share
Net Asset Value $15.63
- ------------------------------------
Premium/(Discount) to NAV -0.96%
- ------------------------------------
Market Yield 5.70%
- ------------------------------------
Taxable-Equivalent Yield1 7.92%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $259,071
- ------------------------------------
Average Effective
Maturity on Securities (Years) 17.20
- ------------------------------------
Leverage-Adjusted Duration 8.59
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
1-Year 17.51% 12.40%
- ------------------------------------
5-Year 8.83% 8.97%
- ------------------------------------
10-Year 6.67% 6.95%
- ------------------------------------
SECTORS
(as a % of total investments)
- ------------------------------------
Tax Obligation/Limited 25.6%
- ------------------------------------
Transportation 15.4%
- ------------------------------------
Healthcare 13.3%
- ------------------------------------
Utilities 9.3%
- ------------------------------------
Water and Sewer 9.0%
- ------------------------------------
U.S. Guaranteed 8.7%
- ------------------------------------
Tax Obligation/General 7.9%
- ------------------------------------
Other 10.8%
- ------------------------------------
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%. When comparing this
fund to investments that generate qualified dividend income, the taxable
equivalent yield is lower.
11
Nuveen Florida Quality Income Municipal Fund
NUF
Performance
OVERVIEW As of June 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 68%
AA 12%
A 14%
BBB 4%
NR 2%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jul 0.083
Aug 0.083
Sep 0.083
Oct 0.083
Nov 0.083
Dec 0.08
Jan 0.08
Feb 0.08
Mar 0.076
Apr 0.076
May 0.076
Jun 0.072
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/04 14.03
14.32
14.37
14.3
14.54
14.54
14.55
14.53
14.5
14.46
14.54
14.45
14.48
14.41
14.32
14.38
14.29
14.32
14.41
14.51
14.56
14.56
14.57
14.65
14.73
14.7
14.83
14.88
14.92
14.8
14.73
14.82
14.79
14.71
14.69
14.8
14.81
14.84
14.87
14.93
15.02
15.17
15.23
15.32
15.08
15.12
15.19
15.07
15.33
15.43
15.6
15.3
15.31
15.41
15.25
15.3
15.23
15.2
15.24
15.2
15.1
15.15
15.17
15.12
15.08
15.14
15.14
15.15
15.46
15.28
15.33
15.29
15.26
15.17
15.32
15.16
15.19
15.13
15.22
15.27
15.45
15.5
15.62
15.7
15.6
15.8
15.68
15.95
16.01
15.72
15.2
15.12
15.11
15.22
15.24
15.69
15.85
15.72
15.66
15.53
15.46
15.39
15.34
15.39
15.56
15.37
15.53
15.22
15.15
15.21
15.29
15.12
15.23
15.3
15.16
15.11
14.88
15.06
14.81
15.03
15.1
15.1
15.14
15.09
15.09
15.2
15.1
15.29
15.55
15.41
15.55
15.8
15.68
15.72
15.71
15.9
15.69
15.68
15.68
15.58
15.65
15.6
15.66
15.67
15.6
15.63
15.69
15.69
15.76
15.71
15.72
15.72
15.8
15.84
15.94
15.93
16
15.76
15.9
15.9
15.9
15.73
15.67
15.65
16
15.75
15.77
15.99
16
16.04
16.04
15.96
15.88
15.97
15.89
15.79
15.85
15.5
15.29
15.16
15.09
14.92
14.7
14.49
13.98
14
14.03
14.11
14.2
14.4
14.49
14.67
14.6
14.51
14.54
14.59
14.6
14.65
14.67
14.58
14.66
14.62
14.66
14.71
14.67
14.65
14.55
14.63
14.76
14.93
14.84
14.84
15.03
15.02
15.05
15.05
15.02
15.06
15.24
15.2
15.15
15.12
15.13
15.19
15.26
15.25
15.26
15.4
15.59
15.65
15.62
15.67
15.66
15.87
16
15.9
15.92
16.04
15.98
15.85
15.76
15.74
15.64
15.45
15.46
15.45
15.4
15.4
15.45
15.34
15.35
15.32
15.25
15.29
6/30/05 15.27
FUND SNAPSHOT
- ------------------------------------
Common Share Price $15.27
- ------------------------------------
Common Share
Net Asset Value $15.72
- ------------------------------------
Premium/(Discount) to NAV -2.86%
- ------------------------------------
Market Yield 5.66%
- ------------------------------------
Taxable-Equivalent Yield1 7.86%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $224,792
- ------------------------------------
Average Effective
Maturity on Securities (Years) 17.18
- ------------------------------------
Leverage-Adjusted Duration 8.27
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/17/91)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
1-Year 17.42% 12.89%
- ------------------------------------
5-Year 8.52% 8.55%
- ------------------------------------
10-Year 6.86% 6.79%
- ------------------------------------
SECTORS
(as a % of total investments)
- ------------------------------------
Tax Obligation/Limited 28.0%
- ------------------------------------
Healthcare 16.0%
- ------------------------------------
Transportation 14.9%
- ------------------------------------
Utilities 8.1%
- ------------------------------------
Education and Civic
Organizations 6.9%
- ------------------------------------
Water and Sewer 6.8%
- ------------------------------------
Tax Obligation/General 6.2%
- ------------------------------------
Housing/Multifamily 6.0%
- ------------------------------------
Other 7.1%
- ------------------------------------
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%. When comparing this
fund to investments that generate qualified dividend income, the taxable
equivalent yield is lower.
12
Nuveen Insured Florida Premium Income Municipal Fund
NFL
Performance
OVERVIEW As of June 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 91%
U.S. Guaranteed 9%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.08
Aug 0.08
Sep 0.08
Oct 0.08
Nov 0.08
Dec 0.08
Jan 0.08
Feb 0.08
Mar 0.077
Apr 0.077
May 0.077
Jun 0.073
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/04 14.61
14.77
14.64
14.91
14.8
14.87
14.9
14.98
14.87
14.9
15
14.93
14.85
14.81
14.83
14.86
14.88
14.82
14.79
14.78
14.94
14.94
14.98
15.12
15.18
15.19
15.17
15.24
15.26
15.17
15.14
15.26
15.2
15.36
15.36
15.33
15.37
15.35
15.37
15.46
15.44
15.52
15.5
15.56
15.64
15.63
15.45
15.52
15.35
15.48
15.52
15.52
15.58
15.75
15.64
15.73
15.66
15.76
15.72
15.77
15.72
15.84
15.98
15.94
15.88
15.8
15.8
16.01
16.05
15.95
16.27
16.28
16.27
16.35
16.32
16.24
16.27
16.18
16.39
16.27
16.3
16.33
16.33
16.55
16.56
16.59
16.83
16.77
16.9
16.63
16.6
16.2
16.03
16.08
16.05
16.21
16.14
16.15
16.1
16.1
16.06
15.9
15.91
15.89
15.91
15.79
15.62
15.52
15.25
15.42
15.53
15.5
15.6
15.65
15.78
15.65
15.4
15.43
15.25
15.27
15.29
15.4
15.52
15.46
15.65
15.73
15.79
15.85
16.07
16.02
16.08
16.4
16.35
16.33
16.33
16.5
16
15.94
15.92
15.8
15.85
16.06
16.28
16.43
16.5
16.71
16.58
16.51
16.85
16.43
16.4
16.3
16.44
16.44
16.5
16.55
16.65
16.52
16.5
16.5
16.4
16.24
16.45
16.58
16.4
16.5
16.44
16.42
16.25
16.25
16.27
16.15
16.19
16.19
15.97
15.85
15.78
15.39
15.15
15.19
15.25
15.25
15.24
15.15
15.04
14.77
14.87
14.92
14.9
15.05
15.19
15.36
15.45
15.48
15.54
15.52
15.69
15.66
15.56
15.57
15.76
15.92
15.84
15.56
15.4
15.52
15.5
15.39
15.58
15.7
15.94
15.94
15.9
15.95
15.88
15.89
15.97
15.85
15.91
15.8
15.74
15.74
15.83
15.71
15.85
15.94
15.97
16.05
16.15
16.08
16.15
16.22
16.27
16.39
16.34
16.25
16.35
16.31
16.42
16.32
16.31
16.26
16.33
16.33
16.27
16.33
16.4
16.38
16.36
16.39
16.47
16.49
16.47
16.65
6/30/05 16.74
FUND SNAPSHOT
- ------------------------------------
Common Share Price $16.74
- ------------------------------------
Common Share
Net Asset Value $16.26
- ------------------------------------
Premium/(Discount) to NAV 2.95%
- ------------------------------------
Market Yield 5.23%
- ------------------------------------
Taxable-Equivalent Yield1 7.26%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $233,779
- ------------------------------------
Average Effective
Maturity on Securities (Years) 16.70
- ------------------------------------
Leverage-Adjusted Duration 7.92
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/17/92)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
1-Year 25.54% 11.33%
- ------------------------------------
5-Year 11.71% 8.92%
- ------------------------------------
10-Year 8.90% 7.43%
- ------------------------------------
SECTORS
(as a % of total investments)
- ------------------------------------
Tax Obligation/Limited 33.3%
- ------------------------------------
Water and Sewer 21.2%
- ------------------------------------
Transportation 12.5%
- ------------------------------------
Housing/Multifamily 10.0%
- ------------------------------------
U.S. Guaranteed 8.9%
- ------------------------------------
Healthcare 6.8%
- ------------------------------------
Other 7.3%
- ------------------------------------
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%. When comparing this
fund to 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 2004 of $0.1112 per share.
13
Nuveen Insured Florida Tax-Free Advantage Municipal Fund
NWF
Performance
OVERVIEW As of June 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 88%
AAA (Uninsured) 9%
AA (Uninsured) 2%
A (Uninsured) 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jul 0.072
Aug 0.072
Sep 0.0695
Oct 0.0695
Nov 0.0695
Dec 0.0665
Jan 0.0665
Feb 0.0665
Mar 0.0625
Apr 0.0625
May 0.0625
Jun 0.0595
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/04 13.2
13.3
13.39
13.45
13.49
13.64
13.63
14
13.77
13.47
13.89
14.08
13.92
13.9
13.92
13.85
13.8
13.79
13.79
13.7
13.75
13.75
13.75
13.71
13.71
13.79
13.84
13.84
13.89
13.82
13.95
13.94
13.96
13.88
13.88
13.73
13.77
13.71
13.75
13.83
13.82
13.92
13.99
14.04
14.14
14.25
14.18
13.9
13.83
13.91
13.98
14
14.44
14.25
14.21
14.25
14.4
14.4
14.21
14.35
14.26
14.27
14.55
14.65
14.6
14.59
14.5
14.49
14.49
14.49
14.67
14.79
14.79
14.88
14.98
14.98
14.89
14.95
14.8
14.9
14.95
14.78
14.8
14.85
14.84
14.94
14.99
14.94
14.94
15
14.65
14.2
14.26
14.3
14.32
14.35
14.52
14.58
14.53
14.48
14.28
14.26
14.13
14.19
14.19
14.17
14.11
14
13.56
13.75
13.7
13.69
13.6
13.65
13.62
13.62
13.61
13.58
13.55
13.45
13.42
13.5
13.48
13.51
13.45
13.4
13.37
13.4
13.54
13.56
13.5
13.48
13.53
13.45
13.55
13.56
13.59
13.67
13.5
13.61
13.66
13.67
13.58
13.67
13.74
13.83
13.84
13.83
13.86
13.79
13.92
14.02
14.17
14.21
14.17
14.18
14.02
14.17
14.18
14.1
14.1
14.08
13.8
13.89
13.86
13.86
14.02
13.94
13.88
13.86
13.9
13.9
14.02
14.02
13.88
13.9
13.84
13.66
13.46
13.41
13.55
13.5
13.47
13.25
13.2
13.19
13.02
13.05
13.16
13.19
13.25
13.42
13.46
13.69
13.68
13.33
13.44
13.52
13.31
13.4
13.4
13.32
13.42
13.23
13.4
13.4
13.32
13.32
13.4
13.54
13.61
13.61
13.64
13.56
13.52
13.5
13.58
13.59
13.6
13.54
13.53
13.66
13.74
13.75
13.93
13.92
13.91
13.94
13.95
14.16
14.11
14.08
14.2
14.34
14.39
14.37
14.41
14.42
14.34
14.22
14.2
14.07
14.04
14.05
13.92
13.91
13.8
13.84
13.94
13.93
13.9
14.1
14.36
14.4
6/30/05 14.26
FUND SNAPSHOT
- ------------------------------------
Common Share Price $14.26
- ------------------------------------
Common Share
Net Asset Value $14.76
- ------------------------------------
Premium/(Discount) to NAV -3.39%
- ------------------------------------
Market Yield 5.01%
- ------------------------------------
Taxable-Equivalent Yield1 6.96%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $57,296
- ------------------------------------
Average Effective
Maturity on Securities (Years) 18.65
- ------------------------------------
Leverage-Adjusted Duration 7.62
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/21/02)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
1-Year 16.62% 13.18%
- ------------------------------------
Since
Inception 3.60% 6.94%
- ------------------------------------
SECTORS
(as a % of total investments)
- ------------------------------------
Tax Obligation/Limited 46.9%
- ------------------------------------
Water and Sewer 15.9%
- ------------------------------------
Healthcare 10.8%
- ------------------------------------
Education and Civic
Organizations 8.2%
- ------------------------------------
Transportation 7.3%
- ------------------------------------
Other 10.9%
- ------------------------------------
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%. When comparing this
fund to investments that generate qualified dividend income, the taxable
equivalent yield is lower.
14
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, 2005, and the related statements of operations for
the year then ended, the statements of changes in net assets for each of the two
years in the period then ended, and the financial highlights for 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. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of June 30, 2005, by correspondence with the custodian and
brokers. 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, 2005 and the
results of their operations for the year then ended, the changes in their net
assets for each of the two years in the period then ended, 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 12, 2005
15
Nuveen Florida Investment Quality Municipal Fund (NQF)
Portfolio of
INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.0% (1.3% OF TOTAL INVESTMENTS)
$ 5,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 5,137,750
Asset-Backed Refunding Bonds, Series 2002, 5.500%, 5/15/39
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 5.4% (3.6% OF TOTAL INVESTMENTS)
1,295 Broward County Educational Facilities Authority, Florida, 4/14 at 100.00 AAA 1,448,457
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 2,125,440
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 3,314,670
Series 2002C, 5.000%, 1/01/15 - MBIA Insured
1,000 Florida Board of Education, Lottery Revenue Bonds, No Opt. Call AAA 1,112,600
Series 2005A, 5.250%, 7/01/11 - AMBAC Insured
Miami-Dade County Educational Facilities Authority, Florida,
Revenue Bonds, University of Miami, Series 2004A:
2,290 5.000%, 4/01/19 - AMBAC Insured 4/14 at 100.00 AAA 2,488,406
3,305 5.000%, 4/01/22 - AMBAC Insured 4/14 at 100.00 AAA 3,553,172
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 19.8% (13.3% OF TOTAL INVESTMENTS)
4,600 Highlands County Health Facilities Authority, Florida, Hospital 11/11 at 101.00 A 5,049,558
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 1,051,510
2,330 5.250%, 10/01/34 10/13 at 100.00 Baa1 2,439,860
2,345 Leesburg, Florida, Hospital Revenue Bonds, Leesburg Regional 7/12 at 100.00 A 2,464,923
Medical Center Project, Series 2002, 5.375%, 7/01/22
3,000 Miami-Dade County Health Facility Authority, Florida, Hospital 8/11 at 101.00 AAA 3,190,830
Revenue Refunding Bonds, Miami Children's Hospital,
Series 2001A, 5.125%, 8/15/26 - AMBAC Insured
6,000 North Broward Hospital District, Florida, Revenue and
Improvement Bonds, Series 2001, 6.000%, 1/15/31 1/11 at 101.00 A- 6,485,400
6,000 Orange County Health Facilities Authority, Florida, Hospital 11/10 at 101.00 A 6,649,260
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 4,013,805
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:
3,410 5.500%, 12/01/21 12/11 at 101.00 A 3,648,393
2,340 5.625%, 12/01/31 12/11 at 101.00 A 2,494,089
7,500 Pinellas County Health Facilities Authority, Florida, Revenue 5/13 at 100.00 A1 8,020,500
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 AA- 5,847,785
Bonds, Series 2002, 5.625%, 5/01/32
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.5% (1.1% OF TOTAL INVESTMENTS)
1,090 Broward County Housing Finance Authority, Florida, Multifamily 5/10 at 101.00 AAA 1,140,227
Housing Revenue Bonds, Emerald Palms Apartments,
Series 2001A, 5.600%, 7/01/21 (Alternative Minimum Tax)
135 Florida Housing Finance Agency, General Mortgage Revenue 12/05 at 100.00 AA 136,650
Refunding Bonds, Series 1992A, 6.400%, 6/01/24
2,500 Florida Housing Finance Agency, Housing Revenue Bonds, 9/06 at 102.00 AAA 2,587,375
Mariner Club Apartments, Series 1996K-1, 6.375%, 9/01/36
(Alternative Minimum Tax) - AMBAC Insured
16
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.0% (2.0% OF TOTAL INVESTMENTS)
$ 4,445 Florida Housing Finance Agency, Homeowner Mortgage 1/06 at 102.00 AA $ 4,564,437
Revenue Bonds, New Money and Refunding Issue,
Series 1995-2, 6.200%, 7/01/27 (Alternative Minimum Tax)
870 Florida Housing Finance Agency, Homeowner Mortgage 1/07 at 102.00 AA 882,885
Revenue Bonds, New Money and Refunding Issue,
Series 1996-2, 6.350%, 7/01/28 (Alternative Minimum Tax)
1,665 Florida Housing Finance Agency, Homeowner Mortgage 7/07 at 102.00 AAA 1,732,882
Revenue Bonds, Series 1997-2, 5.900%, 7/01/29
(Alternative Minimum Tax) - MBIA Insured
305 Manatee County Housing Finance Authority, Florida, Single 11/05 at 102.00 Aaa 312,424
Family Mortgage Revenue Bonds, Series 1994-3,
7.600%, 11/01/26 (Alternative Minimum Tax)
290 Manatee County Housing Finance Authority, Florida, Single 5/06 at 105.00 Aaa 298,903
Family Mortgage Revenue Bonds, Series 1996-1,
7.450%, 5/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.8% (1.2% OF TOTAL INVESTMENTS)
1,750 Palm Beach County Health Facilities Authority, Florida, 11/06 at 102.00 BBB+ 1,809,150
Retirement Community Revenue Bonds, Adult Communities
Total Services Inc. Obligated Group, Series 1996,
5.625%, 11/15/20
St. John's County Industrial Development Authority, Florida,
First Mortgage Revenue Bonds, Presbyterian Retirement
Communities, Series 2004A:
1,125 5.850%, 8/01/24 8/14 at 101.00 N/R 1,244,081
1,565 5.625%, 8/01/34 8/14 at 101.00 N/R 1,693,753
- ------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.4% (1.6% OF TOTAL INVESTMENTS)
5,400 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 6,095,574
Exempt Facilities Remarketed Revenue Bonds, National
Gypsum Company, Apollo Beach Project, Series 2000B,
7.125%, 4/01/30 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.8% (7.9% OF TOTAL INVESTMENTS)
1,920 Florida Department of Transportation, Full Faith and Credit 7/14 at 101.00 AAA 2,154,413
Right-of-Way Acquisition and Bridge Construction Bonds,
Series 2004A, 5.250%, 7/01/19
9,230 Florida State Board of Education, Full Faith and Credit, 6/11 at 101.00 AAA 9,807,613
Public Education Capital Outlay Bonds, Series 2001C,
5.125%, 6/01/31 - FGIC Insured
1,500 Florida State Board of Education, Full Faith and Credit 6/12 at 101.00 AAA 1,629,015
Public Education Capital Outlay Bonds, Series 2002F,
5.000%, 6/01/22 - MBIA Insured
2,080 Florida State Board of Education, Full Faith and Credit 6/13 at 100.00 AAA 2,252,078
Public Education Capital Outlay Bonds, Series 2003J,
5.000%, 6/01/21 - AMBAC Insured
8,000 Florida State Board of Education, Full Faith and Credit, 6/12 at 100.00 AAA 8,906,720
Public 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 3,819,582
1,750 5.000%, 6/01/20 - MBIA Insured 4/14 at 100.00 AAA 1,897,560
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 38.2% (25.6% OF TOTAL INVESTMENTS)
Miami-Dade County, Florida, Beacon Tradeport Community
Development District, Special Assessment Bonds, Commercial
Project, Series 2002A:
2,330 5.250%, 5/01/16 - RAAI Insured 5/12 at 102.00 AA 2,542,519
1,700 5.625%, 5/01/32 - RAAI Insured 5/12 at 102.00 AA 1,865,699
5,625 Broward County School Board, Florida, Certificates of 7/14 at 100.00 AAA 6,266,925
Participation, Series 2004C, 5.250%, 7/01/18 - FSA Insured
1,665 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AAA 1,795,952
Series 2005, 5.000%, 10/01/23 - MBIA Insured
1,000 Escambia County, Florida, Sales Tax Revenue Refunding Bonds, 10/12 at 101.00 AAA 1,090,040
Series 2002, 5.000%, 10/01/21 - AMBAC Insured
1,280 Florida Intergovernmental Finance Commission, Capital 8/11 at 100.00 Aaa 1,363,238
Revenue Bonds, Daytona Beach Community Redevelopment
Agency, Series 2001C-1, 5.000%, 2/01/20 - AMBAC Insured
5,000 Florida Ports Financing Commission, Revenue Bonds, State 6/07 at 101.00 AAA 5,214,000
Transportation Trust Fund, Series 1996, 5.375%, 6/01/27
(Alternative Minimum Tax) - MBIA Insured
17
Nuveen Florida Investment Quality Municipal Fund (NQF) (continued)
Portfolio of INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,685 Florida Municipal Loan Council, Revenue Bonds, Series 2003A, 5/13 at 100.00 AAA $ 1,829,640
5.000%, 5/01/22 - MBIA Insured
5,000 Hernando County, Florida, Revenue Bonds, Criminal Justice No Opt. Call AAA 6,764,250
Complex Financing Program, Series 1986, 7.650%, 7/01/16 -
FGIC Insured
1,575 Hillsborough County, Florida, Community Investment Tax 11/13 at 101.00 AAA 1,697,252
Revenue Bonds, Series 2004, 5.000%, 5/01/24 -
AMBAC Insured
2,190 Hillsborough County, Florida, Revenue Refunding Bonds, 10/15 at 100.00 AAA 2,367,784
Tampa Bay Arena, Series 2005, 5.000%, 10/01/25 -
FGIC Insured
2,000 Jacksonville, Florida, Guaranteed Entitlement Revenue 10/12 at 100.00 AAA 2,149,460
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 5,574,473
Bonds, Series 2003, 5.250%, 10/01/21 - MBIA Insured
2,195 Manatee County, Florida, Revenue Bonds, Series 2004, 10/14 at 100.00 AAA 2,374,705
5.000%, 10/01/22 - FGIC Insured
Orlando Community Redevelopment Agency, Florida, Tax Increment
Revenue 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 1,505,240
1,495 5.125%, 4/01/20 - AMBAC Insured 4/12 at 100.00 AAA 1,615,617
1,225 5.125%, 4/01/21 - AMBAC Insured 4/12 at 100.00 AAA 1,323,833
575 Osceola County Industrial Development Authority, Florida, 8/11 at 101.00 AAA 607,430
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:
3,460 5.000%, 4/01/18 - MBIA Insured 4/14 at 100.00 Aaa 3,789,427
3,660 5.000%, 4/01/21 - MBIA Insured 4/14 at 100.00 Aaa 3,960,120
4,000 5.000%, 4/01/23 - MBIA Insured 4/14 at 100.00 Aaa 4,300,360
4,490 Palm Beach County, Florida, Public Improvement Revenue 6/15 at 100.00 AAA 4,833,575
Bonds, Biomedical Research Park Project, Series 2005,
5.000%, 6/01/25 - AMBAC Insured
4,000 Palm Beach County School Board, Florida, Certificates 8/12 at 100.00 AAA 4,220,560
of Participation, Series 2002D, 5.000%, 8/01/28 - FSA Insured
2,560 Palm Beach County School Board, Florida, Certificates 8/14 at 100.00 AAA 2,748,288
of 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 1,084,640
2,335 5.000%, 8/01/21 - AMBAC Insured 8/14 at 100.00 AAA 2,514,118
2,500 Polk County School District, Florida, Sales Tax Revenue Bonds, 10/14 at 100.00 AAA 2,804,250
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 2,977,480
Bonds, Series 2003, 5.000%, 10/01/23 - AMBAC Insured
1,000 Sarasota County School Board, Florida, Certificates of No Opt. Call Aaa 1,120,740
Participation, Series 2004, 5.000%, 7/01/15 - FGIC Insured
Tampa Sports Authority, Hillsborough County, Florida, Sales
Tax Payments Special Purpose Bonds, Stadium Project,
Series 1995:
1,250 5.750%, 10/01/20 - MBIA Insured No Opt. Call AAA 1,514,700
2,585 5.750%, 10/01/25 - MBIA Insured No Opt. Call AAA 3,177,973
2,075 Volusia County, Florida, Gas Tax Revenue Bonds, Series 2004, 10/14 at 100.00 AAA 2,253,263
5.000%, 10/01/21 - FSA Insured
8,605 Volusia County School Board, Florida, Sales Tax Revenue Bonds, 10/12 at 100.00 AAA 9,633,039
Series 2002, 5.375%, 10/01/15 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 23.0% (15.4% OF TOTAL INVESTMENTS)
11,500 Broward County, Florida, Airport System Revenue Bonds, 10/11 at 101.00 AAA 12,199,545
Series 2001J-1, 5.250%, 10/01/26 (Alternative
Minimum Tax) - AMBAC Insured
2,150 Broward County, Florida, Airport System Revenue Bonds, 10/14 at 100.00 AAA 2,301,898
Series 2004L, 5.000%, 10/01/23 - AMBAC Insured
3,500 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 10/06 at 102.00 AAA 3,675,805
5.750%, 10/01/26 (Alternative Minimum Tax) - MBIA Insured
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 12,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/09 at 101.00 AAA $ 12,461,400
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 4,224,920
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 2,727,995
Bonds, Tampa International Airport, Series 1996A,
6.000%, 10/01/23 (Alternative Minimum Tax) - FGIC Insured
2,090 Lee County, Florida, Transportation Facilities Revenue Bonds, 10/14 at 100.00 AAA 2,286,565
Series 2004B, 5.000%, 10/01/19 - AMBAC Insured
1,750 Miami-Dade County Industrial Development Authority, 10/09 at 101.00 AAA 1,931,650
Florida, 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, 10/12 at 100.00 AAA 6,037,770
Miami International Airport, Series 2002,
5.750%, 10/01/18 (Alternative Minimum Tax) -
FGIC Insured
Miami-Dade County Expressway Authority, Florida,
Toll System Revenue Bonds, Series 2004B:
4,135 5.000%, 7/01/19 - FGIC Insured 7/14 at 100.00 AAA 4,508,680
6,690 5.000%, 7/01/20 - FGIC Insured 7/14 at 100.00 AAA 7,268,016
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 13.0% (8.7% OF TOTAL INVESTMENTS)
7,225 Dade County, Florida, Special Obligation and Refunding 10/08 at 48.83 AAA 3,198,435
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 22,591,200
Bonds, Ascension Health Credit Group, Series 1999A-2,
6.000%, 11/15/31 (Pre-refunded to 11/15/09)
3,500 Hillsborough County Aviation Authority, Florida, Revenue 10/06 at 102.00 AAA 3,707,760
Bonds, Tampa International Airport, Series 1996B,
5.875%, 10/01/23 (Pre-refunded to 10/01/06) - FGIC Insured
3,570 Seminole County, Florida, Water and Sewer Revenue Refunding No Opt. Call AAA 4,298,994
and Improvement Bonds, Series 1992, 6.000%, 10/01/19 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.9% (9.3% OF TOTAL INVESTMENTS)
4,330 Hillsborough County Industrial Development Authority, Florida, 10/12 at 100.00 Baa2 4,594,563
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 1,136,709
Series 2002, 5.000%, 4/01/17 - AMBAC Insured
4,250 Lakeland, Florida, Energy System Revenue Refunding Bonds, No Opt. Call AAA 4,922,095
Series 1999C, 6.050%, 10/01/11 - FGIC Insured
7,345 Orlando Utilities Commission, Florida, Water and Electric 10/11 at 101.00 Aa1 8,142,667
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 5,544,100
Revenue Refunding Bonds, Series 2002C, 5.250%, 10/01/18
5,000 Orlando Utilities Commission, Florida, Water and Electric No Opt. Call Aa1 5,695,000
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 6,000,882
Series 2002II, 5.125%, 7/01/26 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.4% (9.0% OF TOTAL INVESTMENTS)
3,310 Cocoa, Florida, Water and Sewerage System Revenue No Opt. Call AAA 3,931,453
Refunding 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 2,180,380
3,390 5.000%, 10/01/21 - FSA Insured 10/13 at 100.00 Aaa 3,695,744
1,000 Jacksonville, Florida, Water and Sewer Revenue Bonds, 8/05 at 102.00 AAA 1,022,710
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 1,662,540
Bonds, Series 2003A, 5.000%, 10/01/20 - MBIA Insured
19
Nuveen Florida Investment Quality Municipal Fund (NQF) (continued)
Portfolio of INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 8,300 Miami-Dade County, Florida, Water and Sewer System 10/09 at 101.00 AAA $ 8,656,485
Revenue Bonds, Series 1999A, 5.000%, 10/01/29 -
FGIC Insured
1,175 Naples, Florida, Water and Sewer Revenue Bonds, 9/12 at 100.00 Aa2 1,296,977
Series 2002, 5.000%, 9/01/14
2,060 Polk County, Florida, Utility System Revenue Bonds, 10/13 at 100.00 Aaa 2,286,724
Series 2003, 5.250%, 10/01/22 - FGIC Insured
2,780 Riviera Beach, Palm Beach County, Florida, Water and 10/14 at 100.00 Aaa 2,994,171
Sewerage Revenue Bonds, Series 2004, 5.000%, 10/01/24 -
FGIC Insured
2,275 Sarasota County, Florida, Utility System Revenue Bonds, 10/15 at 100.00 AAA 2,459,684
Series 2005A, 5.000%, 10/01/27 - FGIC Insured
1,680 Seminole County, Florida, Water and Sewer Revenue No Opt. Call AAA 2,047,550
Refunding and Improvement Bonds, Series 1992,
6.000%, 10/01/19 - MBIA 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 772,261
1,585 5.000%, 4/01/20 - MBIA Insured 4/11 at 101.00 AAA 1,696,061
- ------------------------------------------------------------------------------------------------------------------------------------
$ 358,210 Total Long-Term Investments (cost $357,541,268) - 149.2% 386,541,709
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 4,529,128
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.0)% (132,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 259,070,837
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* 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.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest.
N/R Investment is not rated.
See accompanying notes to financial statements.
20
Nuveen Florida Quality Income Municipal Fund (NUF)
Portfolio of
INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 10.3% (6.9% OF TOTAL INVESTMENTS)
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 $ 1,060,470
500 5.625%, 4/01/34 4/14 at 100.00 BBB 531,360
2,345 FSU Financial Assistance Inc., Florida, General Revenue Bonds, 10/14 at 100.00 AAA 2,592,538
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 5,324,466
Series 2001B, 5.000%, 7/01/20 - FGIC Insured
2,685 Florida Board of Education, Lottery Revenue Bonds, 1/13 at 101.00 AAA 2,966,630
Series 2002C, 5.000%, 1/01/15 - MBIA Insured
1,000 Florida Board of Education, Lottery Revenue Bonds, No Opt. Call AAA 1,112,600
Series 2005A, 5.250%, 7/01/11 - AMBAC Insured
2,580 Florida State Education System, Housing Facility Revenue No Opt. Call AAA 2,886,169
Bonds, Florida International University, Series 2004A,
5.000%, 7/01/14 - MBIA Insured
3,905 Miami-Dade County Educational Facilities Authority, Florida, 4/14 at 100.00 AAA 4,228,256
Revenue Bonds, University of Miami, Series 2004A,
5.000%, 4/01/20 - AMBAC Insured
2,275 University of Central Florida, Certificates of Participation, 10/14 at 100.00 AAA 2,490,511
Athletic Association, Series 2004A, 5.125%, 10/01/21 -
FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 24.1% (16.0% OF TOTAL INVESTMENTS)
1,500 Citrus County Hospital Board, Florida, Revenue Refunding 8/13 at 100.00 Baa3 1,663,155
Bonds, Citrus Memorial Hospital, Series 2002,
6.375%, 8/15/32
2,600 Highlands County Health Facilities Authority, Florida, Hospital 11/11 at 101.00 A 2,854,098
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 525,755
1,590 5.250%, 10/01/34 10/13 at 100.00 Baa1 1,664,969
8,500 Jacksonville Economic Development Commission, Florida, 11/11 at 101.00 AA 9,155,945
Healthcare Facilities Revenue Bonds, Mayo Clinic,
Series 2001A, 5.500%, 11/15/36
3,430 Leesburg, Florida, Hospital Revenue Refunding Bonds, No Opt. Call A- 3,633,399
Leesburg Regional Medical Center Project, Series 2003,
5.000%, 7/01/12
9,000 North Broward Hospital District, Florida, Revenue and 1/11 at 101.00 A- 9,728,100
Improvement Bonds, Series 2001, 6.000%, 1/15/31
6,000 Orange County Health Facilities Authority, Florida, Hospital 12/12 at 100.00 A 6,486,060
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 5,401,600
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 8,020,500
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 AA- 5,031,815
Bonds, Series 2002, 5.625%, 5/01/32
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 9.1% (6.0% OF TOTAL INVESTMENTS)
Broward County Housing Finance Authority, Florida, GNMA
Collateralized Multifamily Housing Revenue Refunding Bonds,
Tamarac Pointe Apartments, Series 1996:
1,500 6.250%, 7/01/26 7/06 at 102.00 AAA 1,553,400
1,000 6.300%, 1/01/32 7/06 at 102.00 AAA 1,033,760
120 Florida Housing Finance Agency, General Mortgage Revenue 12/05 at 100.00 AA 121,466
Refunding Bonds, Series 1992A, 6.400%, 6/01/24
1,000 Florida Housing Finance Agency, Housing Revenue Bonds, 10/05 at 102.00 AAA 1,023,000
Holly Cove Apartments, Series 1995F, 6.150%, 10/01/25
(Alternative Minimum Tax) - AMBAC Insured
21
Nuveen Florida Quality Income Municipal Fund (NUF) (continued)
Portfolio of INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 3,170 Florida Housing Finance Corporation, Housing Revenue 12/08 at 102.00 A+ $ 3,215,109
Refunding Bonds, Hunters Ridge at Deerwood Apartments,
Series 1998-0, 5.300%, 12/01/28
5,790 Florida Housing Finance Corporation, FNMA Revenue Bonds, 10/10 at 102.00 Aaa 6,178,046
Villa de Mallorca Apartments, Series 2000H-1,
6.000%, 7/01/33 (Alternative Minimum Tax)
3,630 Miami-Dade County Housing Finance Authority, Florida, 1/11 at 102.00 AAA 3,870,959
Multifamily Housing Revenue Bonds, Sunset Bay
Apartments, Series 2000-5A, 5.950%, 7/01/30
(Alternative Minimum Tax) - FSA Insured
3,240 Pinellas County Housing Finance Authority, Florida, Multifamily 1/08 at 100.00 AAA 3,370,086
Housing Revenue Bonds, Emerald Bay Apartments,
Series 1998A, 5.000%, 4/01/28 (Alternative Minimum Tax)
(Mandatory put 4/01/08)
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.2% (1.5% OF TOTAL INVESTMENTS)
995 Broward County Housing Finance Authority, Florida, Single 4/09 at 25.51 Aaa 195,368
Family Mortgage Revenue Refunding Bonds, Series 2000B,
0.000%, 4/01/29 (Alternative Minimum Tax)
1,030 Broward County Housing Finance Authority, Florida, Single 4/10 at 25.36 Aaa 201,035
Family Mortgage Revenue Bonds, Series 2001C,
0.000%, 4/01/33 (Alternative Minimum Tax)
2,275 Florida Housing Finance Agency, Homeowner Mortgage 1/06 at 102.00 AA 2,336,129
Revenue Bonds, New Money and Refunding Issue,
Series 1995-2, 6.200%, 7/01/27 (Alternative Minimum Tax)
365 Florida Housing Finance Agency, GNMA Collateralized Home No Opt. Call AAA 378,571
Ownership Revenue Refunding Bonds, Series 1987G-1,
8.595%, 11/01/17
230 Lee County Housing Finance Authority, Florida, Single Family 3/07 at 105.00 Aaa 235,814
Mortgage Revenue Bonds, Multi-County Program,
Series 1997A, Subseries 1, 7.200%, 3/01/27 (Alternative
Minimum Tax) (Pre-refunded to 3/01/07)
75 Miami-Dade County Housing Authority, Florida, Home Owner 4/08 at 101.50 Aaa 78,045
Mortgage Revenue Bonds, Series 1999A-1,
5.550%, 10/01/19 (Alternative Minimum Tax)
1,140 Orange County Housing Finance Authority, Florida, Single 4/06 at 102.00 AAA 1,173,949
Family Mortgage Revenue Bonds, Series 1996A,
6.300%, 4/01/28 (Alternative Minimum Tax)
310 Orange County Housing Finance Authority, Florida, Single 9/07 at 102.00 AAA 311,051
Family Mortgage Revenue Bonds, Series 1997B,
5.100%, 9/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.5% (3.7% OF TOTAL INVESTMENTS)
7,285 Atlantic Beach, Florida, Health Care Facilities Revenue 10/09 at 101.00 A 7,722,683
Refunding Bonds, Fleet Landing Project, Series 1999,
5.750%, 10/01/18 - ACA Insured
1,750 Palm Beach County Health Facilities Authority, Florida, 11/06 at 102.00 BBB+ 1,809,150
Retirement Community Revenue Bonds, Adult Communities
Total Services Inc. Obligated Group, Series 1996,
5.625%, 11/15/20
St. John's County Industrial Development Authority, Florida,
First Mortgage Revenue Bonds, Presbyterian Retirement
Communities, Series 2004A:
1,125 5.850%, 8/01/24 8/14 at 101.00 N/R 1,244,081
1,570 5.625%, 8/01/34 8/14 at 101.00 N/R 1,699,164
- ------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.3% (1.5% OF TOTAL INVESTMENTS)
4,600 Hillsborough County Industrial Development Authority, 4/10 at 101.00 N/R 5,192,526
Florida, Exempt Facilities Remarketed Revenue Bonds,
National Gypsum Company, Apollo Beach Project,
Series 2000B, 7.125%, 4/01/30 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 9.3% (6.2% OF TOTAL INVESTMENTS)
15,925 Florida State Board of Education, Full Faith and Credit 6/12 at 101.00 AAA 17,308,883
Public 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 3,488,249
Counties, Florida, General Obligation Bonds, Series 2004A,
5.000%, 6/01/22 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 42.0% (28.0% OF TOTAL INVESTMENTS)
1,000 Alachua County School Board, Florida, Certificates of 7/11 at 101.00 Aaa 1,068,570
Participation, Series 2001, 5.000%, 7/01/21 - AMBAC Insured
1,055 Bay County School Board, Florida, Certificates of Participation, 7/14 at 100.00 Aaa 1,130,390
Series 2004, 5.000%, 7/01/24 - AMBAC Insured
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
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 $ 2,153,343
850 5.625%, 5/01/32 - RAAI Insured 5/12 at 102.00 AA 932,850
3,870 Broward County School Board, Florida, Certificates of 7/14 at 100.00 AAA 4,289,779
Participation, Series 2004C, 5.250%, 7/01/20 - FSA Insured
1,500 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AAA 1,617,975
Series 2005, 5.000%, 10/01/23 - MBIA Insured
1,290 Escambia County, Florida, Tourist Development Revenue 10/12 at 100.00 AAA 1,409,906
Refunding Bonds, Series 2002, 5.000%, 10/01/18 -
MBIA Insured
8,425 Florida Department of Environmental Protection, Florida 7/13 at 101.00 AAA 9,188,474
Forever Revenue Bonds, Series 2003C,
5.000%, 7/01/19 - AMBAC Insured
Florida Municipal Loan Council, Revenue Bonds, Series 2000B:
1,040 0.000%, 11/01/25 - MBIA Insured No Opt. Call AAA 423,249
1,590 0.000%, 11/01/26 - MBIA Insured No Opt. Call AAA 615,235
3,145 Jacksonville, Florida, Excise Taxes Revenue Refunding Bonds, 10/13 at 100.00 AAA 3,457,078
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 2,396,648
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 1,159,860
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 1,532,846
Bonds, Series 2001, 5.000%, 10/01/23 - AMBAC Insured
2,750 Jacksonville, Florida, Local Government Sales Tax Revenue 10/12 at 100.00 AAA 3,071,063
Refunding and Improvement Bonds, Series 2002,
5.375%, 10/01/17 - FGIC Insured
2,090 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/13 at 100.00 AAA 2,272,603
Bonds, Series 2003, 5.000%, 10/01/22 - MBIA Insured
Lake County School Board, Florida, Certificates of
Participation, Series 2004A:
1,190 5.000%, 7/01/20 - AMBAC Insured 7/14 at 100.00 AAA 1,287,175
1,340 5.000%, 7/01/22 - AMBAC Insured 7/14 at 100.00 AAA 1,438,892
1,470 5.000%, 7/01/24 - AMBAC Insured 7/14 at 100.00 AAA 1,571,621
2,220 Lee County, Florida, Local Option Gas Tax Revenue Bonds, 10/14 at 100.00 Aaa 2,416,115
Series 2004, 5.000%, 10/01/19 - FGIC Insured
Manatee County School District, Florida, Sales Tax Revenue
Bonds, Series 2003:
4,660 5.000%, 10/01/14 - AMBAC Insured 10/13 at 100.00 AAA 5,162,301
5,130 5.000%, 10/01/17 - AMBAC Insured 10/13 at 100.00 AAA 5,604,115
2,475 Northern Palm Beach County Improvement District, Florida, 8/10 at 102.00 AA 2,786,009
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, 7/05 at 101.00 AAA 2,025,560
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 3,562,931
3,400 5.125%, 1/01/23 - FGIC Insured 1/13 at 100.00 AAA 3,710,250
2,440 Orange County School Board, Florida, Certificates of 8/14 at 100.00 Aaa 2,627,172
Participation, Series 2004A, 5.000%, 8/01/22 -
AMBAC Insured
1,000 Orlando Community Redevelopment Agency, Florida, Tax 4/12 at 100.00 AAA 1,094,720
Increment Revenue Bonds, Republic Drive-Universal
Boulevard - I-4 Interchange Project, Series 2002,
5.125%, 4/01/19 - AMBAC Insured
2,040 Palm Beach County School Board, Florida, Certificates of 8/12 at 100.00 AAA 2,226,150
Participation, Series 2002D, 5.250%, 8/01/21 - FSA Insured
Palm Beach County School Board, Florida, Certificates of
Participation, Series 2004A:
1,000 5.000%, 8/01/20 - FGIC Insured 8/14 at 100.00 AAA 1,084,640
1,500 5.000%, 8/01/22 - FGIC Insured 8/14 at 100.00 AAA 1,615,065
1,000 Pasco County, Florida, Sales Tax Revenue Bonds, Series 2003, 12/13 at 100.00 Aaa 1,094,040
5.000%, 12/01/17 - AMBAC Insured
23
Nuveen Florida Quality Income Municipal Fund (NUF) (continued)
Portfolio of INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,355 Plantation, Florida, Non-Ad Valorem Revenue Refunding and 8/13 at 100.00 Aaa $ 2,564,595
Improvement Bonds, Series 2003, 5.000%, 8/15/19 -
FSA Insured
1,350 Port St. Lucie, Florida, Sales Tax Revenue Bonds, Series 2003, 9/13 at 100.00 AAA 1,470,704
5.000%, 9/01/21 - MBIA Insured
1,000 Volusia County, Florida, Tax Revenue Bonds, Tourist 12/14 at 100.00 Aaa 1,078,220
Development, Series 2004, 5.000%, 12/01/24 - FSA Insured
11,815 Volusia County School Board, Florida, Sales Tax Revenue 10/12 at 100.00 AAA 13,357,448
Bonds, Series 2002, 5.375%, 10/01/14 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 22.3% (14.9% OF TOTAL INVESTMENTS)
2,225 Broward County, Florida, Airport System Revenue Bonds, 10/11 at 101.00 AAA 2,376,411
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 12,602,760
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 1,540,050
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 3,649,555
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 4,224,920
Revenue Bonds, Series 2002B, 5.125%, 10/01/21
(Alternative Minimum Tax) - FSA Insured
1,800 Jacksonville Port Authority, Florida, Port Facilities Revenue 11/06 at 102.00 AAA 1,889,658
Bonds, Series 1996, 5.625%, 11/01/18 (Alternative
Minimum Tax) - MBIA Insured
1,000 Lee County, Florida, Transportation Facilities Revenue Bonds, No Opt. Call AAA 1,120,570
Series 2004B, 5.000%, 10/01/14 - AMBAC Insured
7,500 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/08 at 101.00 AAA 7,714,575
Miami International Airport, Series 1998A,
5.000%, 10/01/24 (Alternative Minimum Tax) - FGIC Insured
4,000 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/08 at 101.00 AAA 4,116,880
Miami International Airport, Series 1998C,
5.000%, 10/01/23 (Alternative Minimum Tax) - MBIA Insured
2,000 Miami-Dade County Expressway Authority, Florida, Toll 7/11 at 101.00 Aaa 2,144,800
System Revenue Refunding Bonds, Series 2001,
5.000%, 7/01/21 - FGIC Insured
Miami-Dade County Expressway Authority, Florida, Toll
System Revenue Bonds, Series 2004B:
3,955 5.250%, 7/01/17 - FGIC Insured 7/14 at 100.00 AAA 4,435,256
2,000 5.250%, 7/01/18 - FGIC Insured 7/14 at 100.00 AAA 2,234,720
2,000 5.000%, 7/01/23 - FGIC Insured 7/14 at 100.00 AAA 2,150,740
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 0.8% (0.4% OF TOTAL INVESTMENTS)
1,500 Bradford County Health Facility Authority, Florida, Revenue No Opt. Call AAA 1,755,960
Refunding Bonds, Santa Fe Healthcare Inc., Series 1993,
6.050%, 11/15/16
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.2% (8.1% OF TOTAL INVESTMENTS)
750 Gainesville, Florida, Utilities System Revenue Bonds, 10/13 at 100.00 AA 834,803
Series 2003A, 5.250%, 10/01/21
4,800 Hillsborough County Industrial Development Authority, 10/12 at 100.00 Baa2 5,093,280
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 10,279,971
Refunding Bonds, Issue 2, Series 2002-17, 5.000%, 10/01/15
3,290 Orlando Utilities Commission, Florida, Water and Electric 10/11 at 101.00 Aa1 3,647,294
Revenue Refunding Bonds, Series 2001, 5.250%, 10/01/17
3,170 Orlando Utilities Commission, Florida, Water and Electric 10/12 at 100.00 Aa1 3,514,959
Revenue Refunding Bonds, Series 2002C, 5.250%, 10/01/17
3,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 3,243,720
Series 2002II, 5.125%, 7/01/26 - FSA Insured
650 Reedy Creek Improvement District, Florida, Utility Revenue 10/15 at 100.00 AAA 702,767
Bonds, Series 2005-1, 5.000%, 10/01/25 - AMBAC Insured
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 10.2% (6.8% OF TOTAL INVESTMENTS)
$ 1,365 Florida Governmental Utility Authority, Utility System Revenue 10/13 at 100.00 AAA $ 1,488,109
Bonds, Lehigh Project, Series 2003, 5.000%, 10/01/20 -
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 1,090,190
4,000 5.000%, 10/01/20 - FSA Insured 10/13 at 100.00 Aaa 4,360,760
2,450 JEA, Florida, Water and Sewerage System Revenue Bonds, 4/07 at 100.00 AAA 2,542,880
Series 2002A, 5.375%, 10/01/30 - MBIA Insured
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 3,529,159
5,090 5.000%, 10/01/19 - FGIC Insured 10/13 at 100.00 AAA 5,549,067
3,000 5.000%, 10/01/23 - FGIC Insured 10/13 at 100.00 AAA 3,248,160
1,065 Lee County Industrial Development Authority, Florida, 11/12 at 100.00 AAA 1,136,607
Utilities Revenue Bonds, Bonita Springs Utilities Inc. Project,
Series 2002, 5.000%, 11/01/19 (Alternative Minimum Tax) -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
$ 316,040 Total Long-Term Investments (cost $318,644,366) - 150.3% 337,815,093
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 3,977,293
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.0)% (117,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 224,792,386
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* 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.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest.
N/R Investment is not rated.
See accompanying notes to financial statements.
25
Nuveen Insured Florida Premium Income Municipal Fund (NFL)
Portfolio of
INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 2.5% (1.7% OF TOTAL INVESTMENTS)
$ 5,325 Escambia County Housing Finance Authority, Florida, 6/09 at 101.00 AAA $ 5,830,769
Dormitory Revenue Bonds, University of West Florida
Foundation Inc., Series 1999, 5.750%, 6/01/31 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 10.0% (6.8% OF TOTAL INVESTMENTS)
2,000 Brevard County Health Facilities Authority, Florida, Hospital 10/06 at 101.00 AAA 2,085,640
Revenue Bonds, Holmes Regional Medical Center Project,
Series 1996, 5.625%, 10/01/14 - MBIA Insured
2,500 Hillsborough County Industrial Development Authority, No Opt. Call AAA 3,144,225
Florida, Industrial Development Revenue Bonds, University
Community Hospital, Series 1994, 6.500%, 8/15/19 -
MBIA Insured
5,000 Lee County Hospital Board, Florida, Fixed-Rate Hospital 4/07 at 102.00 AAA 5,316,150
Revenue Bonds, Lee Memorial Health System, Series 1997A,
5.750%, 4/01/22 - MBIA Insured
7,220 Miami-Dade County Health Facility Authority, Florida, 8/11 at 101.00 AAA 7,679,264
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 5,199,850
and Improvement Bonds, Series 1997, 5.375%, 1/15/24 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 14.6% (10.0% OF TOTAL INVESTMENTS)
975 Broward County Housing Finance Authority, Florida, GNMA 6/07 at 102.00 AAA 1,014,244
Collateralized Multifamily Housing Revenue Refunding Bonds,
Pompano Oaks Apartments, Series 1997, 6.000%, 12/01/27
(Alternative Minimum Tax)
Collier County Housing Finance Authority, Florida, Multifamily
Housing Revenue Refunding Bonds, Saxon Manor Isles Project,
Series 1998A, Subseries 1:
1,040 5.350%, 9/01/18 (Alternative Minimum Tax) - FSA Insured 3/08 at 101.00 AAA 1,071,689
1,400 5.400%, 9/01/23 (Alternative Minimum Tax) - FSA Insured 3/08 at 101.00 AAA 1,441,090
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 1,298,392
1,000 5.400%, 9/01/23 (Alternative Minimum Tax) - FSA Insured 3/08 at 101.00 AAA 1,029,350
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 1,269,569
1,890 5.750%, 9/01/29 (Alternative Minimum Tax) - FSA Insured 9/07 at 101.00 AAA 1,947,626
1,400 Florida Housing Finance Agency, Housing Revenue Bonds, 4/07 at 102.00 AAA 1,458,772
Riverfront Apartments, 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 1,630,163
Williamsburg Village Apartments, 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 1,029,830
Turtle Creek Apartments, Series 1996C-1, 6.100%, 5/01/16
(Alternative Minimum Tax) - AMBAC Insured
Florida Housing Finance Agency, Housing Revenue Bonds,
Sterling Palms Apartments, Series 1996D-1:
945 6.300%, 12/01/16 (Alternative Minimum Tax) - AMBAC Insured 6/06 at 102.00 AAA 974,994
1,500 6.400%, 12/01/26 (Alternative Minimum Tax) - AMBAC Insured 6/06 at 102.00 AAA 1,558,335
750 Florida Housing Finance Agency, Housing Revenue Bonds, 12/06 at 102.00 AAA 777,413
Crossings at Indian Run Apartments, Series 1996V,
6.100%, 12/01/26 (Alternative Minimum Tax) -
AMBAC Insured
2,495 Florida Housing Finance Corporation, GNMA Collateralized 9/10 at 102.00 AAA 2,652,983
Housing Revenue Bonds, Raintree Apartments,
Series 2000J-1, 5.950%, 3/01/35 (Alternative Minimum Tax)
2,070 Florida Housing Finance Corporation, GNMA Collateralized 12/10 at 102.00 Aaa 2,211,526
Housing Revenue Bonds, Cobblestone Apartments,
Series 2000K-1, 6.000%, 12/01/33 (Alternative Minimum Tax)
26
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 $ 1,600,395
4,750 5.750%, 10/01/30 - MBIA Insured 10/10 at 102.00 Aaa 5,032,198
3,570 Jacksonville, Florida, GNMA Collateralized Housing Revenue 9/05 at 100.00 AAA 3,579,532
Refunding Bonds, Windermere Manor Apartments,
Series 1993A, 5.875%, 3/20/28
1,425 Miami-Dade County Housing Finance Authority, Florida, 6/11 at 100.00 AAA 1,504,857
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 1,103,532
Multifamily Housing Revenue Bonds, Westlake
Apartments Phase II, Series 2002, 5.150%, 7/01/22
(Alternative Minimum Tax) - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.2% (0.8% OF TOTAL INVESTMENTS)
335 Broward County Housing Finance Authority, Florida, Single 4/09 at 101.00 Aaa 344,119
Family Mortgage Revenue Refunding Bonds, Series 1999B,
5.250%, 4/01/31 (Alternative Minimum Tax) - MBIA Insured
1,285 Escambia County Housing Finance Authority, Florida, 4/08 at 102.00 Aaa 1,314,015
Multi-County Single Family Mortgage Revenue Bonds,
Series 1999, 5.200%, 4/01/32 (Alternative Minimum Tax) -
MBIA Insured
6,295 Florida Housing Finance Corporation, Homeowner Mortgage 1/10 at 24.65 AAA 1,173,262
Revenue Bonds, Series 2000-4, 0.000%, 7/01/30
(Alternative Minimum Tax) - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 2.9% (2.0% OF TOTAL INVESTMENTS)
4,940 Florida State Board of Education, Full Faith and Credit, 6/11 at 101.00 AAA 5,257,148
Public Education Capital Outlay Bonds, Series 2001C,
5.125%, 6/01/29 - FGIC Insured
1,390 Venice, Florida, General Obligation Bonds, Series 2004, 2/14 at 100.00 AAA 1,490,650
5.000%, 2/01/24 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 48.6% (33.3% OF TOTAL INVESTMENTS)
3,820 Broward County School Board, Florida, Certificates 7/13 at 100.00 AAA 4,218,541
of Participation, Series 2003, 5.250%, 7/01/19 - MBIA Insured
1,500 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AAA 1,617,975
Series 2005, 5.000%, 10/01/23 - MBIA Insured
1,555 DeSoto County, Florida, Capital Improvement Revenue Bonds, 4/12 at 101.00 AAA 1,712,848
Series 2002, 5.250%, 10/01/20 - MBIA Insured
Destin, Florida, Capital Improvement Revenue Bonds,
Series 2002:
1,000 5.000%, 8/01/27 - MBIA Insured 8/12 at 101.00 Aaa 1,060,250
1,000 5.125%, 8/01/31 - MBIA Insured 8/12 at 101.00 Aaa 1,072,560
2,500 Escambia County School Board, Florida, Certificates 2/15 at 100.00 AAA 2,700,450
of Participation, Series 2004, 5.000%, 2/01/22 -
MBIA Insured
2,230 Florida Ports Financing Commission, Revenue Bonds, 10/09 at 101.00 AAA 2,404,185
State 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 1,565,040
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 3,666,067
3,345 5.375%, 11/01/30 - MBIA Insured 11/10 at 101.00 AAA 3,644,277
1,000 Florida Municipal Loan Council, Revenue Bonds, Series 2001A, 11/11 at 101.00 AAA 1,109,730
5.250%, 11/01/18 - MBIA Insured
1,080 Gulf Breeze, Florida, Local Government Loan Program, 12/06 at 101.00 AAA 1,136,668
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 1,073,519
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 1,632,315
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 5,561,400
Remarketed 6-1-2001, Series 1985E, 4.750%, 12/01/20
(Mandatory put 12/01/11) - FGIC Insured
27
Nuveen Insured Florida Premium Income Municipal Fund (NFL) (continued)
Portfolio of INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,000 Hillsborough County, Florida, Community Investment 11/13 at 101.00 AAA $ 2,158,480
Tax Revenue Bonds, Series 2004, 5.000%, 5/01/23 -
AMBAC Insured
6,000 Hillsborough County School Board, Florida, Certificates 7/13 at 100.00 AAA 6,384,180
of Participation, Series 2003, 5.000%, 7/01/29 -
MBIA Insured
2,000 Hillsborough County School District, Florida, Sales Tax 10/15 at 100.00 AAA 2,195,880
Revenue Bonds, Series 2005, 5.000%, 10/01/20 -
AMBAC Insured
1,000 Hillsborough County, Florida, Revenue Refunding Bonds, 10/15 at 100.00 AAA 1,081,180
Tampa Bay Arena, Series 2005, 5.000%, 10/01/25 -
FGIC Insured
1,000 Indian Trace Development District, Florida, Water 5/15 at 102.00 Aaa 1,089,070
Management Special Benefit Assessment Bonds,
Series 2005, 5.000%, 5/01/25 - MBIA Insured
1,500 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/13 at 100.00 AAA 1,667,340
Bonds, Series 2003, 5.250%, 10/01/20 - MBIA Insured
1,280 Lake County School Board, Florida, Certificates of 7/14 at 100.00 AAA 1,379,482
Participation, Series 2004A, 5.000%, 7/01/21 -
AMBAC Insured
Lakeland, Florida, Utility Tax Revenue Bonds, Series 2003B:
1,730 5.000%, 10/01/18 - AMBAC Insured 10/12 at 100.00 AAA 1,890,804
2,000 5.000%, 10/01/19 - AMBAC Insured 10/12 at 100.00 AAA 2,182,420
1,330 Lee County, Florida, Local Option Gas Tax Revenue Bonds, 10/14 at 100.00 Aaa 1,445,338
Series 2004, 5.000%, 10/01/20 - FGIC Insured
18,000 Miami-Dade County, Florida, Subordinate Special Obligation 4/08 at 49.54 AAA 7,993,440
Bonds, Series 1997A, 0.000%, 10/01/21 - MBIA Insured
1,000 Opa-Locka, Florida, Capital Improvement Revenue Bonds, 7/05 at 101.00 AAA 1,013,560
Series 1994, 7.000%, 1/01/14 - FGIC Insured
3,180 Orange County, Florida, Sales Tax Revenue Bonds, 1/13 at 100.00 AAA 3,470,175
Series 2002B, 5.125%, 1/01/19 - FGIC Insured
495 Orange County School Board, Florida, Master Lease 8/07 at 101.00 Aaa 521,077
Program, Certificates of Participation, Series 1997A,
5.375%, 8/01/22 - MBIA Insured
1,050 Osceola County School Board, Florida, Certificates of 12/14 at 100.00 AAA 1,146,779
Participation, Series 2005C, 5.000%, 6/01/19 - FGIC Insured
Osceola County, Florida, Transportation Revenue Bonds,
Osceola Parkway, Series 2004:
2,500 5.000%, 4/01/21 - MBIA Insured 4/14 at 100.00 Aaa 2,705,000
5,820 5.000%, 4/01/23 - MBIA Insured 4/14 at 100.00 Aaa 6,257,024
6,500 Palm Beach County, Florida, Administrative Complex Revenue No Opt. Call AAA 7,224,295
Refunding Bonds, Series 1993, 5.250%, 6/01/11 - FGIC Insured
Palm Beach County, Florida, Revenue Refunding Bonds,
Criminal Justice Facilities, Series 1993:
2,500 5.375%, 6/01/08 - FGIC Insured No Opt. Call AAA 2,677,175
4,000 5.375%, 6/01/10 - FGIC Insured No Opt. Call AAA 4,421,760
2,150 Palm Beach County School Board, Florida, Certificates 8/14 at 100.00 AAA 2,304,757
of Participation, Series 2004A, 5.000%, 8/01/24 - FGIC Insured
1,300 Plantation, Florida, Non-Ad Valorem Revenue Refunding 8/13 at 100.00 Aaa 1,415,700
and Improvement Bonds, Series 2003, 5.000%, 8/15/21 -
FSA Insured
4,260 St. Lucie County School Board, Florida, Certificates 7/14 at 100.00 AAA 4,564,420
of Participation, Master Lease Program, Series 2004A,
5.000%, 7/01/24 - FSA Insured
St. Petersburg, Florida, Sales Tax Revenue Bonds, Professional
Sports Facility, Series 2003:
1,405 5.125%, 10/01/19 - FSA Insured 10/13 at 100.00 Aaa 1,544,095
1,475 5.125%, 10/01/20 - FSA Insured 10/13 at 100.00 Aaa 1,621,025
1,555 5.125%, 10/01/21 - FSA Insured 10/13 at 100.00 Aaa 1,708,945
1,245 Tamarac, Florida, Sales Tax Revenue Bonds, Series 2002, 4/12 at 100.00 AAA 1,332,411
5.000%, 4/01/22 - FGIC Insured
2,000 Volusia County, Florida, Gas Tax Revenue Bonds, Series 2004, 10/14 at 100.00 AAA 2,171,820
5.000%, 10/01/21 - FSA Insured
1,785 Volusia County, Florida, Tax Revenue Bonds, Tourist 12/14 at 100.00 Aaa 1,924,623
Development, Series 2004, 5.000%, 12/01/24 - FSA Insured
2,000 Volusia County School Board, Florida, Certificates of 8/15 at 100.00 Aaa 2,144,840
Participation, Series 2005B, 5.000%, 8/01/24 - FSA Insured
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 18.3% (12.5% OF TOTAL INVESTMENTS)
$ 9,000 Broward County, Florida, Airport System Revenue Bonds, 10/11 at 101.00 AAA $ 9,547,470
Series 2001J-1, 5.250%, 10/01/26 (Alternative
Minimum Tax) - AMBAC Insured
2,150 Broward County, Florida, Airport System Revenue Bonds, 10/14 at 100.00 AAA 2,301,898
Series 2004L, 5.000%, 10/01/23 - AMBAC Insured
1,100 Dade County, Florida, Seaport Revenue Refunding Bonds, 10/05 at 102.00 AAA 1,130,063
Series 1995, 5.750%, 10/01/15 - MBIA Insured
2,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/13 at 100.00 AAA 2,175,180
Revenue Refunding Bonds, Series 2003A, 5.000%, 10/01/17 -
FSA Insured
2,000 Jacksonville Port Authority, Florida, Port Facilities Revenue 11/06 at 102.00 AAA 2,099,620
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 16,795,396
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 6,274,763
Miami International Airport, Series 2002,
5.750%, 10/01/19 (Alternative Minimum Tax) - FGIC Insured
2,295 Miami-Dade County Expressway Authority, Florida, No Opt. Call AAA 2,450,073
Toll System Revenue Bonds, Series 2004B,
5.000%, 7/01/29 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 13.0% (8.9% OF TOTAL INVESTMENTS)
4,835 Cape Coral, Florida, Capital Improvement Revenue Bonds, 10/09 at 101.00 Aaa 5,337,743
Series 1999, 5.375%, 10/01/24 (Pre-refunded to
10/01/09) - FSA Insured
4,275 Orange County School Board, Florida, Master Lease Program, 8/07 at 101.00 Aaa 4,520,513
Certificates of Participation, Series 1997A,
5.375%, 8/01/22 (Pre-refunded to 8/01/07) - MBIA Insured
10,000 Port St. Lucie, Florida, Utility System Revenue Bonds, 9/11 at 34.97 AAA 2,843,200
Series 2001, 0.000%, 9/01/29 (Pre-refunded to 9/01/11) -
MBIA Insured
St. Lucie County, Florida, Utility System Revenue Refunding
Bonds, Series 1993:
5,000 5.500%, 10/01/15 - FGIC Insured 10/05 at 100.00 AAA 5,412,250
1,200 5.500%, 10/01/21 - FGIC Insured 10/05 at 100.00 AAA 1,299,888
7,855 Seminole County, Florida, Water and Sewer Revenue No Opt. Call AAA 9,458,991
Refunding and Improvement Bonds, Series 1992,
6.000%, 10/01/19 - MBIA Insured
1,500 Tampa, Florida, Healthcare System Revenue Bonds, 12/05 at 100.00 AAA 1,516,035
Allegany Health System - St. Joseph's Hospital,
Series 1993, 5.125%, 12/01/23 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.1% (2.8% OF TOTAL INVESTMENTS)
3,525 Palm Beach County Solid Waste Authority, Florida, No Opt. Call AAA 3,926,956
Revenue 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 5,580,800
Bonds, Series 2002B, 0.000%, 10/01/14 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 31.1% (21.2% OF TOTAL INVESTMENTS)
1,250 Bay County, Florida, Water System Revenue Bonds, 9/15 at 100.00 Aaa 1,354,075
Series 2005, 5.000%, 9/01/24 - AMBAC Insured
Broward County, Florida, Water and Sewer Utility Revenue
Bonds, Series 2003:
6,775 5.000%, 10/01/21 - MBIA Insured 10/13 at 100.00 AAA 7,386,037
4,500 5.000%, 10/01/24 - MBIA Insured 10/13 at 100.00 AAA 4,848,480
1,200 Callaway-Bay County, Florida, Wastewater System Revenue 9/14 at 100.00 Aaa 1,289,856
Bonds, Series 2004, 5.000%, 9/01/23 - MBIA Insured
Davie, Florida, Water and Sewerage Revenue Refunding
and Improvement Bonds, Series 2003:
910 5.250%, 10/01/17 - AMBAC Insured 10/13 at 100.00 AAA 1,013,576
475 5.250%, 10/01/18 - AMBAC Insured 10/13 at 100.00 AAA 529,065
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 1,387,575
1,095 5.000%, 10/01/23 - MBIA Insured 10/13 at 100.00 AAA 1,185,578
1,225 5.000%, 10/01/24 - MBIA Insured 10/13 at 100.00 AAA 1,319,864
1,000 Florida Governmental Utility Authority, Utility System Revenue 7/09 at 101.00 Aaa 1,041,230
Bonds, Golden Gate Project, Series 1999,
5.000%, 7/01/29 - AMBAC Insured
29
Nuveen Insured Florida Premium Income Municipal Fund (NFL) (continued)
Portfolio of INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 3,945 Florida Governmental Utility Authority, Utility System Revenue 10/13 at 100.00 AAA $ 4,271,330
Bonds, Citrus Project, 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 8,594,560
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 2,112,020
and Improvement Bonds - Unit 17, Series 1996,
5.500%, 8/01/22 - MBIA Insured
1,000 JEA, Florida, Water and Sewerage System Revenue Bonds, 4/07 at 100.00 AAA 1,037,910
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 2,784,368
Series 2004A, 5.000%, 10/01/14 - FGIC Insured
1,500 JEA, Florida, Water and Sewerage System Revenue Bonds, 10/14 at 100.00 AAA 1,609,560
Series 2005, 5.000%, 10/01/24 - MBIA Insured
1,450 Jupiter, Florida, Water Revenue Bonds, Series 2003, 10/13 at 100.00 AAA 1,576,686
5.000%, 10/01/22 - AMBAC Insured
2,000 Manatee County, Florida, Public Utilities Revenue Bonds, 10/13 at 100.00 Aaa 2,198,000
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 1,503,657
1,000 5.250%, 10/01/18 - MBIA Insured 10/13 at 100.00 AAA 1,113,820
1,750 Palm Bay, Florida, Utility System Revenue Bonds, Palm Bay 10/13 at 100.00 AAA 1,907,833
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 1,111,560
500 5.250%, 10/01/20 - MBIA Insured 10/13 at 100.00 AAA 555,780
500 5.250%, 10/01/21 - MBIA Insured 10/13 at 100.00 AAA 555,780
1,170 Polk County, Florida, Utility System Revenue Bonds, 10/14 at 100.00 AAA 1,260,137
Series 2004A, 5.000%, 10/01/24 - FGIC Insured
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 1,315,961
1,980 5.250%, 5/01/17 - MBIA Insured 5/12 at 100.00 AAA 2,184,514
2,330 Port St. Lucie, Florida, Utility System Revenue Bonds, 9/13 at 100.00 AAA 2,538,325
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 1,085,270
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 1,502,637
770 5.250%, 1/01/18 - FGIC Insured 1/13 at 100.00 AAA 850,758
500 5.250%, 1/01/20 - FGIC Insured 1/13 at 100.00 AAA 551,405
3,530 Seminole County, Florida, Water and Sewer Revenue No Opt. Call AAA 4,302,293
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 1,373,645
Series 1996, 5.800%, 10/01/11 - AMBAC Insured
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,000 Village Center Community Development District, Florida, 10/13 at 101.00 AAA $ 2,190,760
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 1,155,514
5.000%, 10/01/31 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
$ 341,545 Total Long-Term Investments (cost $315,815,659) - 146.3% 342,104,760
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 2,674,373
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.5)% (111,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 233,779,133
====================================================================================================================
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
unless otherwise noted.
* 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.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest.
See accompanying notes to financial statements.
31
Nuveen Insured Florida Tax-Free Advantage Municipal Fund (NWF)
Portfolio of
INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.2% (8.2% OF TOTAL INVESTMENTS)
$ 2,240 FSU Financial Assistance Inc., Florida, General Revenue No Opt. Call AAA $ 2,502,573
Bonds, Educational and Athletic Facilities Improvements,
Series 2004, 5.000%, 10/01/14 - AMBAC Insured
1,985 North Miami, Florida, Educational Facilities Revenue 4/13 at 100.00 AAA 2,131,830
Refunding Bonds, Johnson and Wales University,
Series 2003A, 5.000%, 4/01/19 - XLCA Insured
Volusia County Educational Facilities Authority, Florida,
Revenue Refunding Bonds, Embry-Riddle Aeronautical University
Project, Series 2003:
1,000 5.200%, 10/15/26 - RAAI Insured 10/13 at 100.00 AA 1,061,290
1,250 5.200%, 10/15/33 - RAAI Insured 10/13 at 100.00 AA 1,321,438
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 16.2% (10.8% OF TOTAL INVESTMENTS)
4,000 Highlands County Health Facilities Authority, Florida, 11/13 at 100.00 A 4,405,240
Hospital Revenue 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 3,280,500
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- 1,579,500
Revenue Bonds, Baptist Health Systems of South Florida,
Series 2003, 5.200%, 11/15/28
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.7% (1.1% OF TOTAL INVESTMENTS)
955 Florida Housing Finance Agency, GNMA Collateralized Home No Opt. Call AAA 990,507
Ownership Revenue Refunding Bonds, Series 1987G-1,
8.595%, 11/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 5.1% (3.4% OF TOTAL INVESTMENTS)
2,660 Grand Prairie Independent School District, Dallas County, 2/13 at 100.00 AAA 2,936,268
Texas, General Obligation Bonds, Series 2003,
5.375%, 2/15/26 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 70.2% (46.9% OF TOTAL INVESTMENTS)
400 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AAA 431,460
Series 2005, 5.000%, 10/01/23 - MBIA Insured
1,000 Escambia County, Florida, Sales Tax Revenue Refunding Bonds, 10/12 at 101.00 AAA 1,116,580
Series 2002, 5.250%, 10/01/17 - AMBAC Insured
1,525 Fernandina Beach, Florida, Utility Acquisition and Improvement 9/13 at 100.00 AAA 1,650,736
Revenue Bonds, Series 2003, 5.000%, 9/01/23 - FGIC Insured
3,000 Florida Municipal Loan Council, Revenue Bonds, Series 2003B, 12/13 at 100.00 AAA 3,198,210
5.000%, 12/01/28 - MBIA Insured
1,500 Hillsborough County School Board, Florida, Certificates of 7/13 at 100.00 AAA 1,596,045
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 2,535,023
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 2,434,263
5.000%, 10/01/20 - AMBAC Insured
1,000 Lee County, Florida, Local Option Gas Tax Revenue Bonds, 10/14 at 100.00 Aaa 1,086,720
Series 2004, 5.000%, 10/01/20 - FGIC Insured
2,000 Orange County, Florida, Sales Tax Revenue Bonds, 1/13 at 100.00 AAA 2,186,600
Series 2002A, 5.125%, 1/01/17 - FGIC Insured
1,500 Orange County, Florida, Sales Tax Revenue Bonds, 1/13 at 100.00 AAA 1,607,550
Series 2002B, 5.125%, 1/01/32 - FGIC Insured
3,370 Osceola County School Board, Florida, Certificates of 6/12 at 101.00 Aaa 3,677,142
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 3,718,725
Series 2004, 5.250%, 10/01/20 - MBIA Insured
3,670 Palm Beach County School Board, Florida, Certificates 8/12 at 100.00 AAA 3,872,364
of Participation, Series 2002D, 5.000%, 8/01/28 -
FSA Insured
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,460 Palm Beach Gardens, Florida, Special Obligation Revenue 2/13 at 100.00 AAA $ 2,672,224
Bonds, Series 2004, 5.000%, 5/01/20 - AMBAC Insured
2,115 Port St. Lucie, Florida, Sales Tax Revenue Bonds, 9/13 at 100.00 AAA 2,289,382
Series 2003, 5.000%, 9/01/23 - MBIA Insured
1,730 St. John's County, Florida, Sales Tax Revenue Bonds, 10/14 at 100.00 AAA 1,863,279
Series 2004A, 5.000%, 10/01/24 - AMBAC Insured
4,000 St. Lucie County School Board, Florida, Certificates of 7/14 at 100.00 AAA 4,285,840
Participation, Master Lease Program, Series 2004A,
5.000%, 7/01/24 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.0% (7.3% OF TOTAL INVESTMENTS)
2,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 2,113,220
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 2,289,377
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 1,871,635
Series 2004B, 5.000%, 10/01/22 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 5.8% (3.9% OF TOTAL INVESTMENTS)
2,950 Palm Beach County School Board, Florida, Certificates of 8/12 at 100.00 AAA 3,313,116
Participation, Series 2002D, 5.250%, 8/01/20 (Pre-refunded
to 8/01/12) - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.8% (2.5% OF TOTAL INVESTMENTS)
2,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 2,162,480
Series 2002II, 5.125%, 7/01/26 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 23.7% (15.9% OF TOTAL INVESTMENTS)
1,000 Bay County, Florida, Water System Revenue Bonds, 9/15 at 100.00 Aaa 1,082,390
Series 2005, 5.000%, 9/01/25 - AMBAC Insured
2,000 JEA, Florida, Water and Sewerage System Revenue Bonds, 4/07 at 100.00 AAA 2,075,820
Series 2002A, 5.375%, 10/01/30 - MBIA Insured
1,670 JEA, Florida, Water and Sewerage System Revenue Bonds, 10/14 at 100.00 AAA 1,790,641
Series 2005, 5.000%, 10/01/25 - MBIA Insured
3,000 Marco Island, Florida, Water Utility System Revenue Bonds, 10/13 at 100.00 AAA 3,203,490
Series 2003, 5.000%, 10/01/27 - MBIA Insured
2,000 Miami-Dade County, Florida, Water and Sewer System 10/09 at 101.00 AAA 2,085,900
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 531,000
Series 2000, 5.000%, 10/01/25 - FSA Insured
1,095 Palm Bay, Florida, Utility System Revenue Bonds, 10/14 at 100.00 AAA 1,220,991
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 1,606,468
Refunding Bonds, Series 2002, 5.000%, 5/01/23 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
$ 79,280 Total Long-Term Investments (cost $81,267,130) - 149.7% 85,777,817
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.9% 518,170
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.6)% (29,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 57,295,987
====================================================================================================================
33
Nuveen Insured Florida Tax-Free Advantage Municipal Fund (NWF) (continued)
Portfolio of INVESTMENTS June 30, 2005
FORWARD SWAPS OUTSTANDING AT JUNE 30, 2005:
UNREALIZED
NOTIONAL EFFECTIVE TERMINATION APPRECIATION
AMOUNT DATE(2) DATE (DEPRECIATION)
- ------------------------------------------------------------------------------------------------------------------------------------
Agreement with Morgan Stanley dated January 31, 2005,
to pay semi-annually the notional amount multiplied
by 5.058% (annualized) and receive quarterly the
notional amount multiplied by the three-month
USD-LIBOR (United States Dollar-London Inter-Bank
Offered Rates). $2,200,000 8/16/05 8/16/35 $(140,010)
Agreement with JPMorgan dated June 21, 2005, to pay
semi-annually the notional amount multiplied by 4.833%
(annualized) and receive quarterly the notional amount
multiplied by the three-month USD-LIBOR (United States
Dollar-London Inter-Bank Offered Rates). 2,000,000 2/09/06 2/09/36 (46,371)
Agreement with Citigroup dated June 30, 2005, to pay
semi-annually the notional amount multiplied by 4.699%
(annualized) and receive quarterly the notional amount
multiplied by the three-month USD-LIBOR (United States
Dollar-London Inter-Bank Offered Rates). 700,000 2/27/06 2/27/26 (3,494)
- ------------------------------------------------------------------------------------------------------------------------------------
$(189,875)
====================================================================================================================================
At least 80% of the Fund's net assets (including net
assets attributable 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 attributable to Preferred
shares) may be invested in municipal securities that
are either (i) 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
unless otherwise noted.
(2) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
* 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.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest.
See accompanying notes to financial statements.
34
Statement of
ASSETS AND LIABILITIES June 30, 2005
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 $357,541,268,
$318,644,366, $315,815,659 and $81,267,130, respectively) $386,541,709 $337,815,093 $342,104,760 $85,777,817
Receivables:
Interest 4,861,833 4,876,158 4,282,960 1,107,153
Investments sold 730,000 205,000 107,826 5,000
Other assets 26,386 31,194 20,227 5,232
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 392,159,928 342,927,445 346,515,773 86,895,202
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 776,228 856,772 1,449,864 104,454
Payable for forward swaps closed -- -- -- 259,660
Forward swaps, at value -- -- -- 189,875
Accrued expenses:
Management fees 201,249 176,364 177,872 27,666
Other 87,651 72,785 74,991 16,050
Preferred share dividends payable 23,963 29,138 33,913 1,510
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,089,091 1,135,059 1,736,640 599,215
- ------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 132,000,000 117,000,000 111,000,000 29,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $259,070,837 $224,792,386 $233,779,133 $57,295,987
====================================================================================================================================
Common shares outstanding 16,577,648 14,299,880 14,376,794 3,882,034
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares, divided
by Common shares outstanding) $ 15.63 $ 15.72 $ 16.26 $ 14.76
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 165,776 $ 142,999 $ 143,768 $38,820
Paid-in surplus 231,597,151 206,064,557 204,112,872 54,741,761
Undistributed (Over-distribution of) net investment income 933,018 594,778 1,759,000 (167,879)
Accumulated net realized gain (loss) from investments
and forward swaps (2,625,549) (1,180,675) 1,474,392 (1,637,527)
Net unrealized appreciation of investments
and forward swaps 29,000,441 19,170,727 26,289,101 4,320,812
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $259,070,837 $224,792,386 $233,779,133 $57,295,987
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
35
Statement of
OPERATIONS Year Ended June 30, 2005
FLORIDA FLORIDA INSURED FLORIDA INSURED FLORIDA
INVESTMENT QUALITY QUALITY INCOME PREMIUM INCOME TAX-FREE ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $19,086,850 $16,129,613 $16,923,444 $3,932,360
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,437,207 2,134,796 2,164,255 547,057
Preferred shares - auction fees 330,000 292,500 277,500 72,500
Preferred shares - dividend disbursing agent fees 20,000 30,000 20,000 10,000
Shareholders' servicing agent fees and expenses 28,110 21,043 20,090 1,056
Custodian's fees and expenses 100,001 83,667 91,236 21,800
Trustees' fees and expenses 8,430 7,390 7,396 1,801
Professional fees 75,130 50,227 21,534 11,652
Shareholders' reports - printing and mailing expenses 38,173 25,665 21,923 11,576
Stock exchange listing fees 10,728 10,788 10,736 330
Investor relations expense 51,132 44,333 38,281 9,615
Other expenses 26,893 31,677 20,127 10,799
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit
and expense reimbursement 3,125,804 2,732,086 2,693,078 698,186
Custodian fee credit (19,923) (17,422) (15,134) (10,894)
Expense reimbursement -- -- -- (267,193)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 3,105,881 2,714,664 2,677,944 420,099
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 15,980,969 13,414,949 14,245,500 3,512,261
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 173,273 (1,167,083) 1,839,639 140,285
Net realized gain (loss) from forward swaps -- -- -- (927,595)
Change in net unrealized appreciation (depreciation)
of investments 15,407,096 15,972,684 10,371,791 4,741,998
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- -- (189,875)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain 15,580,369 14,805,601 12,211,430 3,764,813
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,892,045) (1,638,023) (1,580,948) (393,068)
From accumulated net realized gains from investments -- -- (80,509) --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (1,892,045) (1,638,023) (1,661,457) (393,068)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common
shares from operations $29,669,293 $26,582,527 $24,795,473 $6,884,006
====================================================================================================================================
See accompanying notes to financial statements.
36
Statement of
CHANGES IN NET ASSETS
FLORIDA INVESTMENT QUALITY (NQF) FLORIDA QUALITY INCOME (NUF)
--------------------------------- ---------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/05 6/30/04 6/30/05 6/30/04
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 15,980,969 $ 17,514,092 $ 13,414,949 $ 14,877,577
Net realized gain (loss) from investments 173,273 (2,803,982) (1,167,083) (32,845)
Net realized gain (loss) from forward swaps -- -- -- --
Change in net unrealized appreciation (depreciation)
of investments 15,407,096 (11,261,628) 15,972,684 (11,076,128)
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- -- --
Distributions to Preferred shareholders:
From net investment income (1,892,045) (935,071) (1,638,023) (760,122)
From accumulated net realized gains from investments -- (222,346) -- (126,819)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations 29,669,293 2,291,065 26,582,527 2,881,663
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (16,116,436) (16,718,800) (13,650,082) (14,211,785)
From accumulated net realized gains from investments -- (3,231,994) -- (2,042,597)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (16,116,436) (19,950,794) (13,650,082) (16,254,382)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions 472,933 848,891 201,370 720,589
Preferred shares offering costs -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from capital share transactions 472,933 848,891 201,370 720,589
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares 14,025,790 (16,810,838) 13,133,815 (12,652,130)
Net assets applicable to Common shares
at the beginning of year 245,045,047 261,855,885 211,658,571 224,310,701
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares
at the end of year $259,070,837 $245,045,047 $224,792,386 $211,658,571
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the end of year $ 933,018 $ 2,993,802 $ 594,778 $ 2,471,686
====================================================================================================================================
See accompanying notes to financial statements.
37
Statement of
CHANGES IN NET ASSETS (continued)
INSURED FLORIDA
INSURED FLORIDA PREMIUM INCOME (NFL) TAX-FREE ADVANTAGE (NWF)
------------------------------------ ---------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/05 6/30/04 6/30/05 6/30/04
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 14,245,500 $ 14,694,385 $ 3,512,261 $ 3,621,778
Net realized gain (loss) from investments 1,839,639 1,274,638 140,285 (853,466)
Net realized gain (loss) from forward swaps -- -- (927,595) --
Change in net unrealized appreciation (depreciation)
of investments 10,371,791 (13,917,598) 4,741,998 (2,969,559)
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- (189,875) --
Distributions to Preferred shareholders:
From net investment income (1,580,948) (788,965) (393,068) (201,060)
From accumulated net realized gains from investments (80,509) (113,631) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations 24,795,473 1,148,829 6,884,006 (402,307)
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (13,587,141) (13,709,147) (3,101,579) (3,352,591)
From accumulated net realized gains from investments (1,576,378) (1,461,384) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (15,163,519) (15,170,531) (3,101,579) (3,352,591)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions 181,928 496,462 9,910 43,015
Preferred shares offering costs -- -- -- (7,003)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from capital share transactions 181,928 496,462 9,910 36,012
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 9,813,882 (13,525,240) 3,792,337 (3,718,886)
Net assets applicable to Common shares
at the beginning of year 223,965,251 237,490,491 53,503,650 57,222,536
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares
at the end of year $233,779,133 $223,965,251 $57,295,987 $53,503,650
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the end of year $ 1,759,000 $ 2,699,782 $ (167,879) $ (185,493)
====================================================================================================================================
See accompanying notes to financial statements.
38
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The Florida 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.
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.
Effective January 1, 2005, Nuveen Advisory Corp. ("NAC"), the Funds' previous
Adviser, and its affiliate, Nuveen Institutional Advisory Corp. ("NIAC"), were
merged into Nuveen Asset Management ("NAM"), each wholly owned subsidiaries of
Nuveen Investments, Inc. ("Nuveen"). As a result of the merger, NAM is now the
Adviser to all funds previously advised by either NAC or NIAC.
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.
Investment 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. Prices of derivative
investments are also provided by an independent pricing service approved by each
Fund's Board of Trustees. If the pricing service is unable to supply a price for
a derivative investment each Fund may use a market quote provided by a major
broker/dealer in such investments. If it is determined that market prices for an
investment are unavailable or inappropriate, the Board of Trustees of the Funds,
or its designee, may establish a fair value for the investment. 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 transactions are determined on the specific identification method.
Securities purchased on a when-issued or delayed delivery basis may have
extended settlement periods. Any 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, 2005, there
were no such outstanding purchase commitments in any of the 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.
Investment income also includes paydown gains and losses, if any.
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 substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions 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
39
Notes to
FINANCIAL STATEMENTS (continued)
monthly tax-exempt income dividends paid during the fiscal year ended June 30,
2005, have been designated Exempt Interest Dividends. Net realized capital gains
and ordinary income distributions paid by the Funds are subject to federal
taxation.
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 Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one or more Series. The dividend rate on each Series is determined
every seven days, pursuant to a dutch auction process overseen by the auction
agent, and is payable weekly at 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
================================================================================
Forward Swap Transactions
The Funds may invest in certain derivative financial instruments. The Funds' use
of forward interest rate swap transactions is intended to mitigate the negative
impact that an increase in long-term interest rates could have on Common share
net asset value. Forward interest rate swap transactions involve each Fund's
agreement with the counterparty to pay, in the future, a fixed rate payment in
exchange for the counterparty paying the Fund a variable rate payment. The
amount of the payment obligation is based on the notional amount of the forward
swap contract, and would increase or decrease in value based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date were to increase or decrease. The Funds may close out a
contract prior to the effective date at which point a realized gain or loss
would be recognized. When a forward swap is terminated, it does not involve the
delivery of securities or other underlying assets or principal, but rather is
settled in cash on a net basis. Each Fund intends, but is not obligated to,
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To minimize such credit
risk, all counterparties are required to pledge collateral daily (based on the
daily valuation of each swap) on behalf of each Fund with a value approximately
equal to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
the Funds have instructed the custodian to pledge assets of the Funds as
collateral with a value approximately equal to the amount of the unrealized loss
above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the swap valuations fluctuate, either up or
down, by at least the pre-determined threshold amount.
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.
40
Insured Florida Tax-Free Advantage (NWF) invests at least 80% of its net assets
(including net assets attributable 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 attributable 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, in contrast, 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.
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 Funds' organizational documents, their 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.
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 shares were as follows:
FLORIDA FLORIDA
INVESTMENT QUALITY (NQF) QUALITY INCOME (NUF)
------------------------ ------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/05 6/30/04 6/30/05 6/30/04
- -------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment
of distributions 30,216 51,656 12,874 44,713
=============================================================================================================
INSURED FLORIDA INSURED FLORIDA
PREMIUM INCOME (NFL) TAX-FREE ADVANTAGE (NWF)
------------------------ ------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/05 6/30/04 6/30/05 6/30/04
- -------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment
of distributions 11,023 29,319 670 2,781
=============================================================================================================
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the fiscal year ended June 30, 2005, were as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- --------------------------------------------------------------------------------
Purchases $55,665,929 $70,412,358 $42,065,300 $6,152,963
Sales and maturities 60,818,076 67,488,300 41,682,228 5,669,507
================================================================================
41
Notes to
FINANCIAL STATEMENTS (continued)
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses on investments,
timing differences in recognizing income on taxable market discount securities
and timing differences in recognizing certain gains and losses on investment
transactions.
At June 30, 2005, the cost of investments was as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- --------------------------------------------------------------------------------
Cost of investments $357,289,151 $318,640,315 $315,756,736 $81,808,286
================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at June 30, 2005, 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 $29,267,995 $19,207,155 $26,503,941 $4,601,581
Depreciation (15,437) (32,377) (155,917) (632,050)
- --------------------------------------------------------------------------------
Net unrealized
appreciation
of investments $29,252,558 $19,174,778 $26,348,024 $3,969,531
===============================================================================
The tax components of undistributed net investment income and net realized gains
at June 30, 2005, 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 * $1,923,322 $1,649,456 $2,637,928 $64,613
Undistributed net
ordinary income ** -- -- -- --
Undistributed net
long-term capital gains -- -- 1,619,961 --
================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on June 1, 2005, paid on July 1, 2005.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
42
The tax character of distributions paid during the fiscal years ended June 30,
2005 and June 30, 2004, 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
2005 (NQF) (NUF) (NFL) (NWF)
- ----------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $18,170,882 $15,425,361 $15,228,310 $3,544,955
Distributions from net ordinary income ** -- -- 151,001 --
Distributions from net long-term capital gains -- -- 1,527,991 --
==========================================================================================================
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 --
==========================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At June 30, 2005, 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
2013 2,475,431 1,167,083 35,264
- --------------------------------------------------------------------------------
Total $2,625,549 $1,180,675 $872,989
================================================================================
Insured Florida Tax-Free Advantage (NWF) elected to defer $223,382 of net
realized losses from investments incurred from November 1, 2004 through June 30,
2005 ("post-October losses") in accordance with Federal income tax regulations.
Post-October losses are treated as having arisen on the first day of the
following fiscal year.
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
As approved by the Board of Trustees, effective August 1, 2004, a complex-wide
management fee structure was adopted for all funds sponsored by the Adviser, or
its predecessor and its affiliates. This fee structure separates each fund's
management fee into two components - a complex-level component, based on the
aggregate amount of all fund assets managed by the Adviser, and a specific
fund-level component, based only on the amount of assets within each individual
fund. This pricing structure enables Nuveen fund shareholders to benefit from
growth in the assets within each individual fund as well as from growth in the
amount of complex-wide assets managed by the Adviser. Under no circumstances
will this pricing structure result in a fund paying management fees at a rate
higher than would otherwise have been applicable had the complex-wide management
fee structure not been implemented. As of July 31, 2005, the complex-level fee
rate was .1899%; that is, the fund's effective management fees were reduced by
approximately .0101%.
43
Notes to
FINANCIAL STATEMENTS (continued)
Effective August 1, 2004, the annual fund-level fee, payable monthly, for each
of the Funds is based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
FLORIDA INVESTMENT QUALITY (NQF)
AVERAGE DAILY NET ASSETS FLORIDA QUALITY INCOME (NUF)
(INCLUDING NET ASSETS INSURED FLORIDA PREMIUM INCOME (NFL)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
- --------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
AVERAGE DAILY NET ASSETS
(INCLUDING NET ASSETS INSURED FLORIDA TAX-FREE ADVANTAGE (NWF)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
- --------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
Effective August 1, 2004, the annual complex-level fee, payable monthly, which
is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S.,
is based on the aggregate amount of total fund assets managed as follows:
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
- --------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion (2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds in
the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level fee
rate for such complex-wide Managed Assets shall be .1400% until such time as
a different rate or rates is determined.
44
Each Fund paid through July 31, 2004, an annual management fee, payable monthly,
at the rates set forth below, which were based upon the average daily net assets
(including net assets attributable to Preferred shares) of each Fund as follows:
FLORIDA INVESTMENT QUALITY (NQF)
AVERAGE DAILY NET ASSETS FLORIDA QUALITY INCOME (NUF)
(INCLUDING NET ASSETS INSURED FLORIDA PREMIUM INCOME (NFL)
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE RATE
- --------------------------------------------------------------------------------
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
================================================================================
AVERAGE DAILY NET ASSETS
(INCLUDING NET ASSETS INSURED FLORIDA TAX-FREE ADVANTAGE (NWF)
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE RATE
- --------------------------------------------------------------------------------
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 enable
Trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised Funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised Funds.
For the first 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. ANNOUNCEMENT REGARDING PARENT COMPANY OF ADVISER
In early April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul
Travelers"), which owned 79% of Nuveen, (A) completed a public offering of a
substantial portion of its equity stake in Nuveen, (B) sold Nuveen $200 million
of its Nuveen shares, (C) entered into an agreement with Nuveen to sell an
additional $400 million of its Nuveen shares on a "forward" basis with payment
for and settlement of these shares delayed for several months, and (D) entered
into agreements with two unaffiliated investment banking firms to sell an amount
equal to most or all of its remaining Nuveen shares for current payment but for
future settlement. Transactions (C) and (D) above were settled in late July,
which effectively reduced St. Paul Travelers' controlling stake in Nuveen and
was deemed an "assignment" (as defined in the 1940 Act) of the investment
management agreements between the Funds and the Adviser, which resulted in the
automatic termination of each agreement under the 1940 Act. In anticipation of
such deemed assignment, the Board of Trustees had approved new ongoing
investment management agreements for each Fund and the submission of those
agreements for approval by each respective Fund's shareholders, which
shareholder approval was received prior to the settlement of transactions (C)
and (D). The new ongoing management agreements took effect upon such settlement.
45
Notes to
FINANCIAL STATEMENTS (continued)
7. 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 1, 2005, to shareholders of record
on July 15, 2005, as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- --------------------------------------------------------------------------------
Dividend per share $.0735 $.0720 $.0730 $.0595
================================================================================
46
Financial
HIGHLIGHTS
47
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
-------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
FLORIDA INVESTMENT
QUALITY (NQF)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 $14.81 $ .96 $ .94 $(.11) $ -- $1.79 $ (.97) $ -- $ (.97)
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)
FLORIDA QUALITY
INCOME (NUF)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 14.81 .94 1.04 (.11) -- 1.87 (.96) -- (.96)
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)
INSURED FLORIDA
PREMIUM INCOME (NFL)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 15.59 .99 .86 (.11) (.01) 1.73 (.95) (.11) (1.06)
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)
INSURED FLORIDA
TAX-FREE ADVANTAGE (NWF)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 13.78 .90 .98 (.10) -- 1.78 (.80) -- (.80)
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:
2005 $ -- $15.63 $15.48 17.51% 12.40%
2004 -- 14.81 14.03 (9.61) .95
2003 -- 15.87 16.75 13.28 12.02
2002 -- 15.19 15.83 13.27 9.77
2001 -- 14.76 14.89 12.03 10.11
FLORIDA QUALITY
INCOME (NUF)
- -------------------------------------------------------------------------------------
Year Ended 6/30:
2005 -- 15.72 15.27 17.42 12.89
2004 -- 14.81 13.84 (10.29) 1.29
2003 -- 15.75 16.60 11.56 11.45
2002 -- 15.23 15.99 13.80 8.15
2001 -- 15.02 14.97 12.58 9.37
INSURED FLORIDA
PREMIUM INCOME (NFL)
- -------------------------------------------------------------------------------------
Year Ended 6/30:
2005 -- 16.26 16.74 25.54 11.33
2004 -- 15.59 14.24 (11.70) .46
2003 -- 16.57 17.22 16.05 12.10
2002 -- 15.66 15.71 14.29 8.13
2001 -- 15.30 14.54 18.32 13.09
INSURED FLORIDA
TAX-FREE ADVANTAGE (NWF)
- -------------------------------------------------------------------------------------
Year Ended 6/30:
2005 -- 14.76 14.26 16.62 13.18
2004 -- 13.78 12.94 (13.56) (.79)
2003(a) (.22) 14.75 15.87 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:
2005 $259,071 1.23% 6.26% 1.22% 6.27% 15%
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
FLORIDA QUALITY
INCOME (NUF)
- ------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 224,792 1.24 6.07 1.23 6.07 20
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
INSURED FLORIDA
PREMIUM INCOME (NFL)
- ------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 233,779 1.16 6.14 1.16 6.15 12
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
INSURED FLORIDA
TAX-FREE ADVANTAGE (NWF)
- ------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 57,296 1.24 5.77 .75 6.26 7
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:
2005 $132,000 $25,000 $74,066
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
FLORIDA QUALITY
INCOME (NUF)
- -----------------------------------------------------------------------
Year Ended 6/30:
2005 117,000 25,000 73,033
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
INSURED FLORIDA
PREMIUM INCOME (NFL)
- -----------------------------------------------------------------------
Year Ended 6/30:
2005 111,000 25,000 77,653
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
INSURED FLORIDA
TAX-FREE ADVANTAGE (NWF)
- -----------------------------------------------------------------------
Year Ended 6/30:
2005 29,000 25,000 74,393
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 changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common Share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. 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.
(a) For the period November 21, 2002 (commencement of operations) through June
30, 2003.
See accompanying notes to financial statements.
48-49 SPREAD
Board Members
AND OFFICERS
The management of the Fund, including general supervision of the duties
performed for the Fund by the Adviser, is the responsibility of the Board
Members of the Fund. The number of board members of the Fund is currently set at
nine. None of the board members who are not "interested" persons of the Fund 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 Fund,
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 FUND APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
- ------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUND:
- ------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger(1) Chairman of 1994 Chairman and Director (since 1996) of Nuveen Investments, 155
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.(3); Chairman and Director (since
1997) of Nuveen Asset Management; 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 FUND:
- ------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Board member 1997 Private Investor and Management Consultant. 155
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 155
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 155
10/22/48 corporation (since 1996); Director and Vice Chairman, United
333 W. Wacker Drive Fire Group, a publicly held company; Adjunct Faculty Member,
Chicago, IL 60606 University of Iowa; Director, Gazette Companies; Life Trustee
of Coe College; Director, Iowa College Foundation; formerly,
Director, Alliant Energy; formerly, Director, Federal Reserve
Bank of Chicago; formerly, President and Chief Operating Officer,
SCI Financial Group, Inc., a regional financial services firm.
- ------------------------------------------------------------------------------------------------------------------------------------
William C. Hunter Board member 2004 Dean and Distinguished Professor of Finance, School of 155
3/6/48 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
(since 1997), Credit Research Center at Georgetown University;
Director of Xerox Corporation (since 2004).
- ------------------------------------------------------------------------------------------------------------------------------------
David J. Kundert Board member 2005 Retired (2004) as Chairman, JPMorgan Asset Management, 153
10/28/42 President and CEO, Banc One Investment Advisors Corporation,
333 W. Wacker Drive and President, One Group Mutual Funds; prior thereto,
Chicago, IL 60606 Executive Vice President, Banc One Corporation and Chairman
and CEO, Banc One Investment Management Group; Board of Regents,
Luther College; currently a member of the American and Wisconsin
Bar Associations.
50
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 FUND APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
- ------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUND (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Board member 1997 Chairman, formerly, Senior Partner and Chief Operating 155
9/24/44 Officer, Miller-Valentine Partners Ltd., a real estate
333 W. Wacker Drive investment company; formerly, Vice President, Miller-Valentine
Chicago, IL 60606 Realty, a construction company; Board Member and Chair of the
Finance Committee, member of the Audit Committee of Premier
Health Partners, the not-for-profit company of Miami
Valley Hospital; Board Member, formerly Chair, Dayton
Development Coalition; President, Dayton Philharmonic Orchestra
Association; 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 155
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
- ------------------------------------------------------------------------------------------------------------------------------------
Eugene S. Sunshine Board member 2005 Senior Vice President for Business and Finance (since 1997), 155
1/22/50 Northwestern University; Director (since 2003), Chicago
333 W. Wacker Drive Board of Options Exchange; Director (since 2003), National
Chicago, IL 60606 Mentor Holdings, a privately-held, national provider of home
and community-based services; Chairman (since 1997),
Board of Directors, Rubicon, an insurance company owned
by Northwestern University; Director (since 1997),
Evanston of Commerce and Evanston Inventure, a
business development organization.
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(4) DURING PAST 5 YEARS OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUND:
- ------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 155
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.(3);
Managing Director (since 2002), Assistant Secretary and
Associate General Counsel, formerly, Vice President
(since 2000), of Nuveen Asset Management; Managing
Director (since 2004) and Assistant Secretary (since 1994)
of Nuveen Investments, Inc.; 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.
51
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(4) DURING PAST 5 YEARS OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUND (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------------------
Julia L. Antonatos Vice President 2004 Managing Director (since 2005), previously, Vice President 155
9/22/63 (since 2002), formerly, Assistant Vice President (since 1999)
333 W. Wacker Drive of Nuveen Investments, LLC; Chartered Financial Analyst.
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant Vice 155
2/3/66 and Assistant President (since 2000) of Nuveen Investments, LLC.
333 W. Wacker Drive Secretary
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999); 155
11/28/67 and Treasurer Vice President and Treasurer of Nuveen Investments, Inc.
333 W. Wacker Drive (since 1999); Vice President and Treasurer of Nuveen Advisory
Chicago, IL 60606 Corp. and Nuveen Institutional Advisory Corp (since 1999)(3);
Vice President and Treasurer of Nuveen Asset Management
(since 2002) and of Nuveen Investments Advisers Inc.;
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 1998 Vice President (since 2002) and Assistant General Counsel 155
9/24/64 and Secretary (since 1998), formerly, Assistant Vice President (since 1998) of
333 W. Wacker Drive 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.(3); and (since 2005) Nuveen
Asset Management.
- ------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Managing Director (since 2004) formerly, Vice President of 155
10/24/45 Nuveen Investments, LLC; Managing Director (since 2004)
333 W. Wacker Drive formerly, Vice President (since 1998) of Nuveen Advisory Corp.
Chicago, IL 60606 and Nuveen Institutional Advisory Corp.(3); Managing Director
(since 2005) of Nuveen Asset Management.
- ------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen Investments, 155
3/2/64 LLC; Managing Director (since 2001), formerly, Vice President
333 W. Wacker Drive (since 1995) of Nuveen Advisory Corp. and Nuveen Institutional
Chicago, IL 60606 Advisory Corp.(3); Managing Director (since 2001) of Nuveen
Asset Management; Vice President (since 2002) of Nuveen
Investment Advisers Inc.; Chartered Financial Analyst.
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 155
5/31/54 and Controller of Nuveen Investments, LLC; formerly, Vice President and
333 W. Wacker Drive Funds Controller (1998-2004) of Nuveen Investments, Inc.;
Chicago, IL 60606 Certified Public Accountant.
- ------------------------------------------------------------------------------------------------------------------------------------
James D. Grassi Vice President 2004 Vice President and Deputy Director of Compliance (since 2004) 155
4/13/56 and Chief of Nuveen Investments, LLC, Nuveen Investments Advisers Inc.,
333 W. Wacker Drive Compliance Nuveen Asset Management and Rittenhouse Asset Management,
Chicago, IL 60606 Officer Inc.; previously, Vice President and Deputy Director of Complliance
(2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory
Corp. (3); formerly, Senior Attorney (1994 to 2004), The Northern
Trust Company.
52
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(4) DURING PAST 5 YEARS OFFICER
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUND (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 155
3/22/63 LLC; Certified Public Accountant.
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President (since 1999) of Nuveen Investments, LLC. 155
8/27/61
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 155
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.(3); Vice President (since 2005) and
Assistant Secretary of Nuveen Investments, Inc. and of Nuveen
Asset Management; Vice President (since 2000), Assistant
Secretary and Assistant General Counsel (since 1998) of
Rittenhouse Asset Management; Vice President and Assistant
Secretary of Nuveen Investments Advisers Inc. (since 2002);
Assistant Secretary of NWQ Investment Management
Company, LLC (since 2002).
(1) Mr. Schwertfeger is an "interested person" of the Fund, 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) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) 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.
53
ANNUAL INVESTMENT
MANAGEMENT AGREEMENT
APPROVAL PROCESS
At a meeting held on May 10-12, 2005, the Board of Trustees of each Fund,
including the independent Trustees, unanimously approved the Investment
Management Agreement between each Fund and NAM.
THE APPROVAL PROCESS
To assist the Board in its evaluation of an advisory contract with NAM, the
independent Trustees received a report in adequate time in advance of their
meeting which outlined, among other things, the services provided by NAM; the
organization of NAM, including the responsibilities of various departments and
key personnel; the Fund's past performance as well as the Fund's performance
compared to funds of similar investment objectives compiled by an independent
third party (a "Peer Group") and if available, with recognized or, in certain
cases, customized benchmarks; the profitability of NAM and certain industry
profitability analyses for advisers to unaffiliated investment companies; the
expenses of NAM in providing the various services; the advisory fees of NAM,
including comparisons of such fees with the management fees of comparable funds
in its Peer Group as well as comparisons of NAM's management fees with the fees
NAM assesses to other types of investment products or accounts, if any; the soft
dollar practices of NAM; and the expenses of each Fund, including comparisons of
the Fund's expense ratios (after any fee waivers) with the expense ratios of its
Peer Group. This information supplements that received by the Board throughout
the year regarding Fund performance, expense ratios, portfolio composition,
trade execution and sales activity.
In addition to the foregoing materials, independent legal counsel to the
independent Trustees provided, in advance of the meeting, a legal memorandum
outlining, among other things, the duties of the Trustees under the 1940 Act as
well as the general principles of relevant state law in reviewing and approving
advisory contracts; the requirements of the 1940 Act in such matters; an
adviser's fiduciary duty with respect to advisory agreements and compensation;
the standards used by courts in determining whether investment company boards of
directors have fulfilled their duties and factors to be considered by the board
in voting on advisory agreements.
At the Board meeting, NAM made a presentation to and responded to questions from
the Board. After the presentations and after reviewing the written materials,
the independent Trustees met privately with their legal counsel to review the
Board's duties in reviewing advisory contracts and consider the renewal of the
advisory contract. It is with this background that the Trustees considered each
Investment Management Agreement with NAM. The independent Trustees, in
consultation with independent counsel, reviewed the factors set out in judicial
decisions and SEC directives relating to the renewal of advisory contracts. As
outlined in more detail below, the Trustees considered all factors they believed
relevant with respect to each Fund, including the following: (a) the nature,
extent and quality of the services to be provided by NAM; (b) the investment
performance of the Fund and NAM; (c) the costs of the services to be provided
and profits to be realized by NAM and its affiliates from the relationship with
the Fund; (d) the extent to which economies of scale would be realized as the
Fund grows; and (e) whether fee levels reflect these economies of scale for the
benefit of Fund investors.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In evaluating the nature, extent and quality of NAM's services, the Trustees
reviewed information concerning the types of services that NAM or its affiliates
provide and are expected to provide to the Nuveen Funds; narrative and
statistical information concerning the Fund's performance record and how such
performance compares to the Fund's Peer Group and, if available, recognized
benchmarks or, in certain cases, customized benchmarks (as described in further
detail in Section B below); information describing NAM's organization and its
various departments, the experience and responsibilities of key personnel, and
available resources. In the discussion of key personnel, the Trustees received
materials regarding the changes or additions in personnel of NAM. The Trustees
further noted the willingness of the personnel of NAM to engage in open, candid
discussions with the Board. The Trustees further considered the quality of NAM's
investment process in making portfolio management decisions, including any
refinements or improvements to the portfolio management processes, enhancements
to technology and systems that are available to portfolio managers, and any
additions of new personnel which may strengthen or expand the research and
investment capabilities of NAM. In their review of advisory contracts for the
fixed income funds, the Trustees also noted that Nuveen won the Lipper Award for
Best Fund Family: Fixed Income-Large Asset Class, for 2004. Given the Trustees'
experience with the Funds, other Nuveen funds and NAM, the Trustees noted that
they were familiar with and continue to have a good understanding of the
organization, operations and personnel of NAM.
In addition to advisory services, the independent Trustees considered the
quality of the administrative or non-advisory services provided. In this regard,
NAM provides the Fund with such administrative and other services (exclusive of,
and in addition to, any such services provided by others for the Funds) and
officers and other personnel as are necessary for the operations of the
respective Fund. In addition to investment management services, NAM and its
affiliates provide each Fund with a wide range of services, including: preparing
shareholder reports; providing daily accounting; providing quarterly financial
statements; overseeing and coordinating the
54
activities of other service providers; administering and organizing Board
meetings and preparing the Board materials for such meetings; providing legal
support (such as helping to prepare registration statements, amendments thereto
and proxy statements and responding to regulatory inquiries); and performing
other Fund administrative tasks necessary for the operation of the respective
Fund (such as tax reporting and fulfilling regulatory filing requirements). In
addition, in evaluating the administrative services, the Trustees considered, in
particular, NAM's policies and procedures for assuring compliance with
applicable laws and regulations in light of the new SEC regulations governing
compliance. The Trustees noted NAM's focus on compliance and its compliance
systems. In their review, the Trustees considered, among other things, the
additions of experienced personnel to NAM's compliance group and modifications
and other enhancements to NAM's computer systems. In addition to the foregoing,
the Trustees also noted that NAM outsources certain services that cannot be
replicated without significant costs or at the same level of expertise. Such
outsourcing has been a beneficial and efficient use of resources by keeping
expenses low while obtaining quality services.
In addition to the above, in reviewing the variety of additional services that
NAM or its affiliates must provide to closed-end funds, such as the Funds, the
independent Trustees determined that Nuveen's commitment to supporting the
secondary market for the common shares of its closed-end funds is particularly
noteworthy. In this regard, the Trustees noted Nuveen's efforts to sponsor
numerous forums for analysts and specialists regarding the various Nuveen
closed-end funds, its creation of a new senior position dedicated to providing
secondary market support services and enhancing communications with investors
and analysts, and its advertising and media relations efforts designed to raise
investor and analyst awareness of the closed-end funds.
With respect to services provided to municipal funds, such as the Funds, the
Trustees also noted, among other things, the enhancements NAM implemented to its
municipal portfolio management processes (e.g., the increased use of benchmarks
to guide and assess the performance of its portfolio managers); the
implementation of a risk management program; and the various initiatives being
undertaken to enhance or modify NAM's computer systems as necessary to support
the innovations of the municipal investment team (such as, the ability to assess
certain historical data in order to create customized benchmarks, perform
attribution analysis and facilitate the use of derivatives as hedging
instruments). With respect to certain of the Funds with a less seasoned
portfolio, the Trustees also noted the hedging program implemented for such
Funds and the team responsible for developing, implementing and monitoring the
hedging procedures. The hedging program was designed to help maintain the
applicable Fund's duration within certain benchmarks.
Based on their review, the Trustees found that, overall, the nature, extent and
quality of services provided (and expected to be provided) to the Funds under
the Investment Management Agreements were of a high level and were quite
satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUND AND ADVISER
As previously noted, the Board received a myriad of performance information
regarding each Fund and its Peer Group, if available. Among other things, the
Board received materials reflecting a Fund's historic performance, the Fund's
performance compared to its Peer Group and, if available, its performance
compared to recognized and, in certain cases, customized benchmarks. Further, in
evaluating the performance information, in certain limited instances, the
Trustees noted that the closest Peer Group for a Fund still would not adequately
reflect such Fund's investment objectives and strategies, thereby limiting the
usefulness of the comparisons of such Fund's performance with that of the Peer
Group.
For state municipal funds, such as the Funds, the performance data included,
among other things, the respective Fund's performance relative to its peers.
More specifically, a Fund's one, three and five year total returns (as
available) for the periods ending December 31, 2004 were evaluated relative to
the unaffiliated funds in its respective Peer Group (including the returns of
individual peers as well as the Peer Group average) as well as additional
performance information with respect to all the funds in the Peer Group, subject
to the following. Certain state municipal Funds do not have a corresponding Peer
Group in which case their performance is measured against a state-specific
municipal index compiled by an independent third party. Such indices measure
bond performance rather than fund performance. The closed-end Funds that utilize
such indices are from Connecticut, Georgia, Maryland, Missouri, North Carolina,
Texas and Virginia. Based on their review, the Trustees determined that each
Fund's absolute and relative investment performance over time had been
satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
In evaluating the management fees and expenses that a Fund is expected to
bear, the Trustees considered the Fund's current management fee structure and
the Fund's expected expense ratios in absolute terms as well as compared with
the fees and expense ratios of the unaffiliated funds in its Peer Group. The
Trustees reviewed the financial information of NAM, including its respective
revenues, expenses and profitability. In reviewing fees, the Trustees, among
other things, reviewed comparisons of the Fund's gross management fees (fees
after fund-level and complex-wide level breakpoints but before reimbursement
and fee waivers), net management fees (after breakpoints and reimbursements
and fee waivers) and total expense ratios (before and after waivers) with
those of the unaffiliated funds in the Peer Group and peer averages. In this
regard, the Trustees noted that the relative ranking of the Nuveen Funds on
fees and expenses was aided by the significant level of fee reductions
provided by the fund-level and complex-wide breakpoint schedules, and the fee
waivers and reimbursements provided by Nuveen for certain Funds launched
since 1999. The complex-wide breakpoint schedule was instituted in 2004 and
is described in further detail below in Section D entitled "Economies of
Scale." In their review of the fee and expense information provided,
including, in particular, the expense ratios of the unaffiliated funds in the
respective Peer Group, the Trustees determined that each Fund's net total
expense ratio was within an acceptable range compared to such peers.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Trustees further compared the fees of NAM to the fees NAM assessed for
other types of clients investing in municipal funds (such as municipal
managed accounts). With respect to such separately managed accounts, the
advisory fees for such accounts
55
ANNUAL INVESTMENT MANAGEMENT
AGREEMENT APPROVAL PROCESS (continued)
are generally lower than those charged to the comparable Fund. The Trustees
noted, however, the additional services that are provided and the costs incurred
by Nuveen in managing and operating registered investment companies, such as the
Funds, compared to individually managed separate accounts. For instance, as
described above, NAM and its affiliates provide numerous services to the Funds
including, but not limited to, preparing shareholder reports; providing daily
accounting; preparing quarterly financial statements; overseeing and
coordinating the activities of other service providers; administering and
organizing Board meetings and preparing the Board materials for such meetings;
providing legal support; and administering all other aspects of the Fund's
operations. Further, the Trustees noted the increased compliance requirements
for funds in light of new SEC regulations and other legislation. These services
are generally not required to the same extent, if at all, for separate accounts.
In addition to the differences in services, the Trustees also considered, among
other things, the differences in product distribution, investment policies,
investor profiles and account sizes. Accordingly, the Trustees believe that the
nature and number of services provided to operate a Fund merit the higher fees
than those to separate managed accounts.
3. PROFITABILITY OF ADVISER
In conjunction with its review of fees, the Trustees also considered NAM's
profitability. The Trustees reviewed NAM's revenues, expenses and
profitability margins (on both a pre-tax and after-tax basis). In reviewing
profitability, the Trustees recognized that one of the most difficult issues
in determining profitability is establishing a method of allocating expenses.
Accordingly, the Trustees reviewed NAM's assumptions and methodology of
allocating expenses. In this regard, the methods of allocation used appeared
reasonable but the Board noted the inherent limitations in allocating costs
among various advisory products. The Trustees also recognized that individual
fund or product line profitability of other advisers is generally not
publicly available. Further, profitability may be affected by numerous
factors including the types of funds managed, expense allocations, business
mix, etc. and therefore comparability of profitability is somewhat limited.
Nevertheless, to the extent available, the Trustees considered NAM's profit
margin compared to the profitability of various publicly-traded investment
management companies and/or investment management companies that publicly
disclose some or all of their financial results compiled by three independent
third-party service providers. The Trustees also reviewed the revenues,
expenses and profit margins of various unaffiliated advisory firms with
similar amounts of assets under management for the last year prepared by NAM.
Based on their review, the Trustees were satisfied that NAM's level of
profitability from its relationship with each Fund was reasonable in light of
the services provided.
In evaluating the reasonableness of the compensation, the Trustees also
considered any other revenues paid to NAM as well as any indirect benefits
(such as soft dollar arrangements, if any) NAM and its affiliates are
expected to receive that are directly attributable to their management of the
Funds, if any. See Section E below for additional information. Based on their
review of the overall fee arrangements of the applicable Fund, the Trustees
determined that the advisory fees and expenses of the respective Fund were
reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
In reviewing the compensation, the Trustees have long understood the benefits of
economies of scale as the assets of a fund grows and have sought to ensure that
shareholders share in these benefits. One method for shareholders to share in
economies of scale is to include breakpoints in the advisory fee schedules that
reduce fees as fund assets grow. Accordingly, the Trustees received and reviewed
the schedules of advisory fees for each Fund, including fund-level breakpoints
thereto. In addition, after lengthy negotiations with management, the Board in
May, 2004 approved a complex-wide fee arrangement pursuant to which fees of the
funds in the Nuveen complex, including the Funds, are reduced as the assets in
the fund complex reach certain levels. The complex-wide fee arrangement was
introduced on August 1, 2004 and the Trustees reviewed data regarding the
reductions of fees for the Funds for the period of August 1, 2004 to December
31, 2004. In evaluating the complex-wide fee arrangement, the Trustees
considered, among other things, the historic and expected fee savings to
shareholders as assets grow, the amount of fee reductions at various asset
levels, and that the arrangement would extend to all Funds in the Nuveen
complex. The Trustees also considered the impact, if any, the complex-wide fee
arrangement may have on the level of services provided. Based on their review,
the Trustees concluded that the breakpoint schedule and complex-wide fee
arrangement currently was acceptable and desirable in providing benefits from
economies of scale to shareholders.
E. INDIRECT BENEFITS
In evaluating fees, the Trustees also considered any indirect benefits or
profits NAM or its affiliates may receive as a result of its relationship with
each Fund. In this regard, the Trustees considered any benefits from soft dollar
arrangements. The Trustees noted that although NAM manages a large amount of
assets, it has very little, if any, brokerage to allocate. This is due to the
fact that NAM
56
typically manages the portfolios of the municipal funds in the Nuveen complex
and municipal bonds generally trade on a principal basis. Accordingly, NAM does
not currently have any soft dollar arrangements and does not pay excess
brokerage commissions (or spreads on principal transactions) in order to receive
research services. In addition to soft dollar arrangements, the Trustees also
considered any other revenues, if any, received by NAM or its affiliates. With
respect to Funds with outstanding preferred shares and new Funds, the Trustees
considered revenues received by Nuveen for serving as agent for broker-dealers
at its preferred trading desk and for acting as co-manager in the initial public
offering of new closed-end exchange-traded funds.
F. OTHER CONSIDERATIONS
Nuveen, until recently, was a majority-owned subsidiary of St. Paul Travelers.
As noted, St. Paul earlier this year announced its intention to divest its
equity stake in Nuveen. Nuveen is the parent of NAM. Pursuant to a series of
transactions, St. Paul has begun to reduce its interest in Nuveen which will
ultimately result in a change of control of Nuveen and therefore NAM. As
mandated by the 1940 Act, such a change in control would result in an assignment
of the advisory agreement with NAM and the automatic termination of such
agreement. Accordingly, the Board also considered for each Fund the approval of
a New Investment Management Agreement with each Fund in light of, and which
would take effect upon, the anticipated change of control. More specifically,
the Board considered for each Fund a New Investment Management Agreement on
substantially identical terms to the existing Investment Management Agreement,
to take effect after the change of control has occurred and the contract has
been approved by Fund shareholders. In its review, the Board considered whether
the various transactions necessary to divest St. Paul's interest will have an
impact on the various factors they considered in approving NAM, such as the
scope and quality of services to be provided following the change of control. In
reviewing the St. Paul transactions, the Board considered, among other things,
the impact, if any, on the operations and organizational structure of NAM; the
possible benefits and costs of the transactions to the respective Fund; the
potential implications of any arrangements used by Nuveen to finance certain of
the transactions; the ability of NAM to perform its duties after the
transactions; whether a Fund's fee structure or expense ratio would change; any
changes to the current practices of the respective Fund; any changes to the
terms of the advisory agreement; and any anticipated changes to the operations
of NAM. Based on its review, the Board determined that St. Paul's divestiture
would not affect the nature and quality of services provided by NAM, the terms
of the Investment Management Agreement, including the fees thereunder, and would
not materially affect the organization or operations of NAM. Accordingly, the
Board determined that their analysis of the various factors regarding their
approval of NAM would continue to apply after the change of control.
G. APPROVAL
The Trustees did not identify any single factor discussed previously as
all-important or controlling. The Trustees, including a majority of independent
Trustees, concluded that the terms of the Investment Management Agreements were
fair and reasonable, that the respective Fund Adviser's fees are reasonable in
light of the services provided to each Fund, that the renewal of the NAM
Investment Management Agreements should be approved, and that the new,
post-change of control NAM Investment Management Agreements be approved and
recommended to shareholders.
57
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.
58
Other Useful
INFORMATION
In April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul Travelers")
sold the majority of its controlling equity interest in Nuveen Investments, Inc.
("Nuveen") to the general public. Nuveen is the parent of Nuveen Asset
Management ("NAM"), which is each Fund's investment manager. This sale was
deemed to be an "assignment" of the investment management agreement between each
Fund and NAM and, if applicable, of the sub-advisory agreement between NAM and
the Fund's sub-adviser. As required by law, the shareholders of each Fund were
asked to approve a new investment management agreement and, if applicable, a new
subadvisory agreement that reflected this change in ownership. The shareholders
of each Fund voted this approval at a Shareholders' Meeting on July 26, 2005.
There were no changes to the investment objectives or management of any Fund as
a result of these actions.
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2005, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
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 that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The 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 the expected period over
which a bond's principal and interest will be paid, and consequently is a
measure of the sensitivity of a bond's or bond Fund's value to changes when
market interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates change.
Leverage-adjusted duration takes into account the leveraging process for a Fund
and therefore is longer than the duration of the Fund's portfolio of bonds.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage 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
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
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 period covered by this report. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
59
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 more than $120 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 fixed-income 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, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
o Fund details
Learn more o Daily financial news
about Nuveen Funds at o Investor education
WWW.NUVEEN.COM/ETF o Interactive planning tools
Logo: NUVEEN Investments
EAN-A-0605D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/etf. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees determined that the registrant
has 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 is Jack B. Evans, Chairman of the Audit Committee, who is
"independent" for purposes of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
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 to its accountant during the fiscal year in which the
services are provided; (B) the Fund did not recognize the services as non-audit
services at the time of the engagement; and (C) the services are promptly
brought to the Audit Committee's attention, and the Committee (or its delegate)
approves the services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND BILLED TO FUND BILLED TO FUND BILLED TO FUND
- ------------------------------------------------------------------------------------------------------------------------------------
June 30, 2005 $ 7,667 $ 0 $ 584 $ 2,700
- ------------------------------------------------------------------------------------------------------------------------------------
Percentage approved N/A 0% 0% 0%
pursuant to
pre-approval
exception
- ------------------------------------------------------------------------------------------------------------------------------------
June 30, 2004 $ 7,298 $ 0 $ 378 $ 2,500
- ------------------------------------------------------------------------------------------------------------------------------------
Percentage approved N/A 0% 0% 0%
pursuant to
pre-approval
exception
- ------------------------------------------------------------------------------------------------------------------------------------
The above "All Other Fees" are fees paid to audit firms to perform agreed upon
procedures required by the rating agencies to rate fund preferred shares. 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 Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM ("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 tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
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, 2005 $ 0 $ 282,575 $ 0
- ---------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
- ---------------------------------------------------------------------------------------------------------------------
June 30, 2004 $ 0 $ 0 $ 0
- ---------------------------------------------------------------------------------------------------------------------
Percentage approved N/A N/A N/A
pursuant to
pre-approval
exception
- ---------------------------------------------------------------------------------------------------------------------
The above "Tax Fees" are primarily fees billed to the Adviser for Fund tax
return preparation.
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's 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, 2005 $ 3,284 $ 282,575 $ 0 $ 285,859
June 30, 2004 $ 2,878 $ 0 $ 0 $ 2,878
The above "Non-Audit Fees billed to Adviser" for 2005 include "Tax-Fees" billed
to Adviser in the amount of $282,575 from previous table.
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.
The registrant's Board of Directors or Trustees has a separately designated
audit committee established in accordance with Section 3(a)(58)(A) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act") (15 U.S.C.
78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner,
Lawrence H. Brown, Jack B. Evans, William J. Schneider and Eugene S. Sunshine.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
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. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable at this time.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(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 second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. 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 the code is posted on registrant's website at www.nuveen.com/etf and
there were no amendments during the period covered by this report. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then Code of Conduct.)
(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.
(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
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By (Signature and Title)* /s/ Jessica R. Droeger
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Jessica R. Droeger
Vice President and Secretary
Date: September 7, 2005
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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 7, 2005
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By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: September 7, 2005
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* Print the name and title of each signing officer under his or her signature.