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
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Date of fiscal year end: June 30
------------------
Date of reporting period: June 30, 2006
------------------
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, 2006
Nuveen Investments
Municipal Exchange-Traded
Closed-End 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
Photo of: Man, woman and child at the beach.
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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: 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 twelve month period covered by
this report your Fund continued to provide you with attractive monthly tax-free
income. For more details about the management strategy and performance of your
Fund, please read the Portfolio Manager's Comments, the Dividend and Share Price
Information, and the Performance Overview sections of this report.
Municipal bonds can be an important building block in a well balanced investment
portfolio. In addition to providing attractive tax-free monthly income, a
municipal bond investment like your Fund may help you achieve and benefit from
greater portfolio diversification. Portfolio diversification is a recognized way
to try to
"PORTFOLIO DIVERSIFICATION IS A RECOGNIZED WAY TO TRY TO REDUCE SOME OF THE RISK
THAT COMES WITH INVESTING."
reduce some of the risk that comes with investing. I encourage you to contact
your personal financial advisor who can help explain this important investment
strategy.
Nuveen Investments is pleased to offer you choices when it comes to receiving
your fund reports. In addition to mailed print copies, you can also sign up to
receive future Fund reports and other Fund information by e-mail and the
Internet. The inside front cover of this report contains information on how you
can sign up.
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. 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.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
August 11, 2006
Nuveen Florida Municipal Exchange-Traded Closed-End Funds
(NQF, NUF, NFL, NWF)
Portfolio Manager's
COMMENTS
Portfolio manager Cathryn Steeves reviews economic and municipal market
conditions at both the national and state levels, key investment strategies, and
the annual performance of these four Nuveen 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, 2006?
During this reporting period, we saw an increase in interest rates across the
yield curve, although rates at the longer end of the curve generally remained
more stable than short-term rates during much of the period. Between July 1,
2005 and June 30, 2006, the Federal Reserve announced eight increases of 0.25%
each in the fed funds rate, raising this short-term target by 200 basis points
from 3.25% to 5.25%. In all, the Fed has implemented 17 consecutive
quarter-point hikes in the fed funds rate since June 2004, bringing the target
rate to its highest level since March 2001. By comparison, the yield on the
benchmark 10-year U.S. Treasury note ended June 2006 at 5.14%, up from 3.94% 12
months earlier, while the yield on the Bond Buyer 25 Revenue Bond Index, a
widely followed measure of longer-term municipal market rates, was 5.31% at the
end of June 2006, an increase of 54 basis points from the beginning of July
2005. As interest rates increased, bond valuations generally declined, and the
yield curve flattened as shorter-term rates approached the levels of longer-term
rates.
Even with rising interest rates, record energy prices, and a housing market that
signaled it could finally be softening, the economy generally remained
resilient, with a strong overall growth pattern. After expanding at a rate of
4.2% in the third quarter of 2005, the U.S. gross domestic product (GDP) slowed
to 1.8% in the fourth quarter of 2005, then rebounded sharply to 5.6% in the
first quarter of 2006 (all GDP numbers are annualized). In the second quarter of
2006, the GDP moderated to 2.5%, with the deceleration reflecting downturns in
consumer and federal government spending as well as the first decrease in
business equipment investment in three years. The overall jobs picture remained
positive, with national unemployment at 4.6% in June 2006, down from 5.0% in
June 2005. However, the markets continued to keep a close eye on inflation
trends, with the year-over-year increase in the Consumer Price Index registering
4.3% as of June 2006. During the first six months of 2006, the increase in
inflation was driven mainly by higher energy and transportation costs, rising at
a rate of 4.7% annualized, compared with 3.4% for all of 2005.
4
Over the 12 months ended June 2006, municipal bond supply nationwide remained
strong, as $403.6 billion in new securities came to market, up 6% from the
previous 12 months. However, following record levels of issuance in calendar
year 2005, we saw a drop-off in new supply during the first six months of 2006,
when municipal issuance totaled $179.3 billion, off 15% from the same period in
2005. A major factor in 2006's decline in supply was the sharp reduction in
pre-refunding volume, which dropped 52% from last year's levels as rising
interest rates made advance refundings less economically attractive. Overall,
demand for municipal bonds, especially those offering higher yields, continued
to be strong and broad-based, with retail investors, property and casualty
insurance companies, and hedge funds all participating in the market.
HOW WERE THE ECONOMIC AND MARKET ENVIRONMENTS IN FLORIDA DURING THIS PERIOD?
During this reporting period, Florida's increasingly diversified economy
continued to perform well, as the state led the Southeast region in job growth
and performance. For 2005, Florida ranked as the third fastest growing state in
the nation (behind Arizona and Nevada). Despite diversification, the state
remained heavily reliant on the tourism industry, which benefited during this
period from favorable exchange rates that attracted overseas tourists and an
increase in domestic tourism based on concerns about terrorism abroad.
Construction was another main driver of Florida's economy, while housing
appreciation, particularly in coastal areas, remained near record highs despite
concerns about a slowdown. Population trends, with growth near 11% over the past
five years, also were positive, although this growth increased the need for
government services. This trend is expected to continue as more retirees move to
Florida and the demand for healthcare and social services grows. The state's
labor market remained tight, with unemployment falling from 3.8% in June 2005 to
3.0% in June 2006, the lowest rate in the nation. Florida's growth is all the
more remarkable given that, between July and October 2005, Florida was hit by
four major hurricanes, including Wilma, the most intense storm ever recorded in
the Atlantic basin. The state sustained an estimated $2.2 billion in losses
associated with Dennis and $12.2 billion from Wilma, with Katrina and Rita
causing lesser but significant damage.
5
Florida's revenue base, dominated by sales taxes, also continued to perform well
during this period. Historically, the state has budgeted conservatively, and its
general fund posted surpluses in the past three years. In February 2006, the $71
billion fiscal 2007 budget, including $1.5 billion in tax cuts, was introduced,
representing an increase of 8% from fiscal 2006. As of June 2006, Florida's
general obligation debt continued to be rated Aa1/AAA by Moody's and Standard &
Poor's, respectively. For the 12 months ended June 30, 2006, municipal issuance
in Florida totaled $20.7 billion, an increase of 17% over the previous 12
months, making Florida the fourth largest state issuer in the nation. During the
first six months of 2006, issuance in the state went against the national trend,
rising 30% from the first half of 2005 to $13.7 billion. This included one of
the largest deals of the second quarter of 2006--$3 billion in "hurricane bonds"
issued by Citizens Property Insurance Corporation in June 2006--as well as
numerous school district issues. (These Florida Funds did not participate in the
hurricane deal due to the fact that the bonds offered shorter durations than we
were seeking for the Funds.)
One event of special interest to the Florida municipal market is the pending
repeal of the Florida intangibles tax. Over the past seven years, the
intangibles tax, which has been in place since 1931, has been gradually reduced
to the 2006 level of 50 cents per $1,000 in investments. In April 2006, the
Florida legislature voted to eliminate the tax entirely as of January 1, 2007,
effectively ending the tax advantage for Florida residents who invest in Florida
state paper (since Florida has no income tax). As of June 30, 2006, this bill
was awaiting the signature of Governor Jeb Bush, who has long advocated
abolishing the intangibles tax. (Editor's note: Bush signed HB 209 to repeal the
intangibles tax on July 26, 2006.) Because the elimination of the tax has been
gradual and long-anticipated, we believe the market has already absorbed much of
the impact of the repeal. To date, this proposed change has not materially
impacted the performance of bonds issued in the state of Florida.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE FLORIDA FUNDS DURING THIS REPORTING
PERIOD?
As interest rates rose and the yield curve flattened during this 12-month
period, we continued to emphasize careful management of the Funds' underlying
portfolios in line with our established targets. This included a disciplined
approach to duration1 management and yield curve positioning. In selecting new
additions for our portfolios, our
1 Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
6
purchase activity focused mainly on attractively priced, premium coupon2 bonds
that, in our opinion, had strong performance potential. In general, we believed
that bonds in the intermediate part of the curve offered better value and reward
opportunities more commensurate with their risk levels. However, at various
times during this 12-month period, we found that bonds available in longer parts
of the yield curve offered more favorable characteristics, and we actively
pursued some opportunities in the 25-year to 30-year range that we found
attractive.
To help us maintain the Funds' durations within our preferred strategic range,
we were selectively selling holdings with shorter durations, including
short-dated pre-refunded bonds. Selling these shorter bonds and reinvesting
further out on the yield curve also helped to improve the Funds' overall call
protection profile. With yields rising during this period, we also found some
opportunities to sell a few of our holdings that were purchased when yields were
lower and replace them with similar, newer credits that yielded comparatively
more. This process allowed us to maintain the Funds' current portfolio
characteristics while strengthening their income streams. It also enabled us to
realize some capital losses that can be used to offset any capital gains
realized in 2006 or carried forward to offset future realized gains.
In looking for potential purchase candidates, we kept an opportunistic eye
toward all types of issuance that we believed could add value to the Funds'
portfolios. Good levels of municipal supply in Florida during this period helped
us find the types of bonds we prefer and implement the strategies we had
planned. Since Florida is a high-quality state, much of the new supply was
highly rated and/or insured, and the majority of our new purchases were
higher-rated credits, mainly school district bonds, which were plentiful during
this period, and hospital issues.
We also continued to emphasize maintaining the Funds' weightings of BBB rated
and nonrated bonds. However, there were few interesting lower-rated credit
opportunities in the high-quality Florida market during this period. As a
result, allocations of lower quality bonds in NQF and NUF generally remained
stable. In NWF, we added nonrated community development district bonds to help
diversify the Fund's holdings.
2 Premium coupon bonds are credits that, at the time of purchase, are trading
above their par values because their coupons are higher than current coupon
levels. Historically, these bonds have held their value better than current
coupon bonds when interest rates rise.
7
Also in NWF, our duration management strategies over the past 12 months included
the use of forward interest rate swaps, a type of derivative financial
instrument. As discussed in our last shareholder report, we began using these
swaps in late 2004 in an effort to reduce the interest rate risk in this Fund.
These hedges were not an attempt to profit from correctly predicting the timing
and direction of interest rate movements. Instead, our sole objective was to
reduce the duration (and resulting pricing sensitivity) of NWF without having a
negative impact on its income stream or common shares dividends over the short
term. We believe the hedging strategy has been effective in helping to reduce
the net asset value (NAV) volatility of this Fund, and the hedge remained in
place as of June 30, 2006.
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen Florida Funds, as well as relevant index and
peer group information, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 6/30/06
1-YEAR 5-YEAR 10-YEAR
- --------------------------------------------------------------------------------
FLORIDA FUNDS
- --------------------------------------------------------------------------------
NQF -0.85% 6.71% 6.32%
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NUF -0.55% 6.51% 6.12%
- --------------------------------------------------------------------------------
Lehman Brothers Municipal
Bond Index3 0.88% 5.05% 5.79%
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INSURED FLORIDA FUNDS
- --------------------------------------------------------------------------------
NFL -0.95% 6.07% 6.59%
- --------------------------------------------------------------------------------
NWF 0.03% NA NA
- --------------------------------------------------------------------------------
Lehman Brothers Insured
Municipal Bond Index3 0.75% 5.28% 5.98%
- --------------------------------------------------------------------------------
Lipper Florida
Municipal Debt Funds
Average4 0.55% 5.99% 6.13%
- --------------------------------------------------------------------------------
*Annualized.
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, 2006, the total returns on NAV for NQF and NUF
underperformed the return on the Lehman Brothers Municipal Bond Index, and the
3 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.
4 The Lipper Florida Municipal Debt Funds category average is calculated
using the returns of all exchange-traded closed-end funds in this category
for each period as follows: 1 year, 17; 5 years, 11; and 10 years, 9. Fund
and Lipper returns assume reinvestment of dividends.
8
performances of NFL and NWF trailed the return for the Lehman Insured Municipal
Bond Index. All four Funds lagged the average return for the Lipper Florida peer
group.
A major factor impacting the annual performance of these Funds, especially in
relation to the returns for the unleveraged Lehman Brothers indexes, was the use
of financial leverage. Although leveraging provides opportunities for additional
income and total returns for common shareholders when interest rates fall or
remain consistently low, this benefit is reduced when interest rates rise. With
the increases in interest rates during this period, the decline in value of the
bonds in the underlying portfolios of these Funds was exacerbated by the effects
of leveraging. In addition, the benefits of leveraging are tied in part to the
short-term rates leveraged Funds pay their MuniPreferred(R) shareholders. During
periods of low short-term rates, these Funds generally pay lower dividends to
their MuniPreferred shareholders, which can leave more earnings to support
common share dividends. Conversely, when short-term interest rates rise, as they
did during this reporting period, the Funds' borrowing costs also rise,
impacting the Funds' income streams and total returns. However, we remain
convinced that, over the long term, the use of financial leverage should work to
the benefit of the Funds. This is demonstrated by the five-year and ten-year
return performance--both absolute and relative to the Lehman indexes--of NQF,
NUF, and NFL.
Other factors influencing the Funds' returns during this period included yield
curve positioning and duration management, allocations to lower-rated credits,
sector weightings, and pre-refunding activity.
As the yield curve continued to flatten over the course of this period, bonds in
the Lehman municipal index with maturities between 6 and 12 years generally were
the most adversely impacted by changes in the curve, underperforming both very
short bonds (those with maturities between 1 and 2 years) and longer bonds
(those with maturities of at least 22 years) by approximately 170 basis points.
Overall, the Florida Funds were strategically well positioned across the yield
curve during this period.
With bonds rated BBB or lower and nonrated bonds generally outperforming other
credit quality sectors during this period, NQF and NUF benefited from their 7%
allocations of BBB and nonrated credits. The performance of this sector was
largely the result of
9
investor demand for the higher yields typically associated with lower-quality
bonds, which drove up their value and tightened credit spreads. However, as
noted earlier, the lack of lower-rated supply in Florida resulted in these Funds
having less than optimal exposures to lower quality sectors, which hampered
their performances to some degree. NWF, which can invest up to 20% of its assets
in uninsured investment-grade quality securities, also benefited from its 5%
allocation of A rated bonds and 3% allocation to nonrated bonds. (As a 100%
insured Fund, NFL did not hold any lower-quality credits, which hurt its
performance for this period.) Among the lower-rated holdings making
contributions to the Funds' total returns for this period were healthcare
(including hospitals) credits and industrial development bonds, both of which
ranked among the top performing revenue sectors in the Lehman municipal index.
Housing bonds were also among some of the best performing credits in the Funds'
portfolios, as rising interest rates lessened the incidence and impact of
prepayments and bond calls. Both multifamily and single-family housing bonds
were positive contributors across all of these Funds.
During this period, we continued to see advance refundings5, which benefit the
Funds through price appreciation and enhanced credit quality. In general, the
majority of the pre-refundings involved uninsured healthcare bonds. This
benefited NQF and, to a lesser extent, NUF and NWF, while NFL did not hold any
of these bonds.
While advance refundings generally enhanced performance for this 12-month
period, the rising interest rate environment meant that the Funds' holdings of
previously pre-refunded bonds, especially those with five years or more to
maturity, tended to underperform the general municipal market. Although none of
the Florida Funds was over-weighted in pre-refunded bonds, NQF and NFL had
heavier allocations of these bonds going into this period than NUF and NWF.
Other categories that lagged the overall market included general obligation
credits and zero coupon bonds.
5 Advance refundings, also known as pre-refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
10
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
JUNE 30, 2006?
We continued to believe that maintaining strong credit quality was an important
requirement. As of June 30, 2006, the two noninsured Funds continued to offer
excellent credit quality, with NQF allocating 89% of its portfolio to bonds
rated AAA/U.S. guaranteed and AA and NUF allocating 86% to these credit
categories. 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 90% of its portfolio to
insured/U.S. guaranteed bonds.
As of June 30, 2006, potential call exposure for the period July 2006 through
the end of 2007 ranged from 2% in NWF and 5% in NQF to 8% in NUF and 11% in NFL.
The number of actual bond calls in all of these Funds depends largely on future
market interest rates.
11
Dividend and Share Price
INFORMATION
As previously noted, all of the Funds in this report use leverage to potentially
enhance opportunities for additional income for common shareholders. During
periods of rising short-term interest rates, as was the case during this
reporting period, the Funds' borrowing costs also rise, reducing the extent of
the benefits of leveraging. To the degree that the Funds experienced bond calls
during this period, proceeds from the older, higher-yielding bonds that were
called had to be reinvested into bonds generally offering lower yields, which
had some impact on their income streams. These factors resulted in one monthly
dividend reduction in NWF, three reductions in NFL, and four in NQF and NUF over
the 12-month period ended June 30, 2006.
In addition, due to capital gains resulting from normal portfolio activity,
common shareholders of NFL received a capital gains distribution of $0.1440 per
share at the end of December 2005. This distribution, which represented an
important part of NFL's total return for this period, was generated by bond
calls and sales of appreciated securities. This had a slight negative impact on
the earning power per common share of this Fund and was a minor factor in the
common share dividend reductions noted above.
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, 2006, NFL had
positive UNII balances for both financial statement and tax purposes, while NQF,
NUF, and NWF had positive UNII balances for tax purposes and negative UNII
balances for financial statement purposes.
At the end of the reporting period, the Funds' share prices were trading at
discounts to their NAVs as shown in the accompanying chart:
6/30/06 12-MONTH AVERAGE
DISCOUNT DISCOUNT
- --------------------------------------------------------------------------------
NQF -11.43% -4.16%
- --------------------------------------------------------------------------------
NUF -12.05% -6.84%
- --------------------------------------------------------------------------------
NFL -9.25% -2.09%
- --------------------------------------------------------------------------------
NWF -4.98% -4.27%
- --------------------------------------------------------------------------------
12
Nuveen Florida Investment Quality Municipal Fund
NQF
Performance
OVERVIEW As of June 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 81%
AA 8%
A 4%
BBB 4%
N/R 3%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jul 0.0735
Aug 0.0735
Sep 0.0695
Oct 0.0695
Nov 0.0695
Dec 0.066
Jan 0.066
Feb 0.066
Mar 0.0625
Apr 0.0625
May 0.0625
Jun 0.058
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/01/05 15.46
15.4
15.58
15.61
15.64
15.57
15.63
15.65
15.61
15.6
15.58
15.63
15.75
15.75
15.94
15.85
15.85
15.9
16.09
16.1
16.1
16.05
16.02
16.1
15.95
16.03
15.83
15.78
15.95
15.81
15.86
15.98
16.01
15.95
15.88
15.86
15.89
15.86
15.87
15.81
15.92
15.8
15.82
15.98
15.91
16.04
15.95
16.13
16.25
16.3
16.32
16.28
16.04
16.1
15.84
15.74
15.88
15.73
15.68
15.68
15.39
15.3
15.4
15.38
15.54
15.43
15.4
15.24
15.05
15.14
15.02
14.95
14.76
14.52
14.41
14.33
14.28
14.33
14.35
14.4
14.42
14.42
14.31
14.34
14.34
14.29
14.27
14.27
14.25
14.31
14.3
14.38
14.33
14.14
14.2
14.19
14.04
14.07
14.27
14.17
14.2
14.22
14.27
14.23
14.25
14.23
14.3
14.2
14.21
14.17
14.18
14.16
14.15
14.18
14.2
14.02
14.07
14.05
14
13.82
13.85
13.85
13.99
13.88
13.84
13.91
14.01
14.04
14.04
14.14
14.21
14.19
14.22
14.21
14.32
14.21
14.25
14.34
14.32
14.43
14.45
14.51
14.54
14.63
14.69
14.68
14.7
14.72
14.72
14.67
14.62
14.55
14.65
14.66
14.6
14.6
14.61
14.63
14.5
14.55
14.49
14.27
14.31
14.46
14.57
14.61
14.62
14.7
14.8
14.72
14.25
14.24
14.31
14.25
14.15
14.25
14.16
14.05
14.07
14.1
14.1
14.11
14.13
14.08
14.1
14.15
14.15
14.15
14.15
14.1
14.02
14.09
14.05
14.05
14.03
13.96
13.88
13.75
13.61
13.66
13.64
13.6
13.54
13.52
13.59
13.59
13.57
13.57
13.54
13.63
13.63
13.6
13.59
13.57
13.59
13.61
13.65
13.58
13.57
13.55
13.57
13.51
13.6
13.47
13.49
13.53
13.5
13.48
13.42
13.4
13.48
13.42
13.45
13.51
13.56
13.47
13.36
13.41
13.33
13.38
13.36
13.28
13.21
13.09
13.05
13.06
13.1
13.09
13.04
13.06
13
13
12.96
13.01
6/30/06 13.02
FUND SNAPSHOT
- ------------------------------------
Common Share Price $13.02
- ------------------------------------
Common Share
Net Asset Value $14.70
- ------------------------------------
Premium/(Discount) to NAV -11.43%
- ------------------------------------
Market Yield 5.35%
- ------------------------------------
Taxable-Equivalent Yield1 7.43%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $243,913
- ------------------------------------
Average Effective
Maturity on Securities (Years) 15.12
- ------------------------------------
Leverage-Adjusted Duration 8.17
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
1-Year -11.13% -0.85%
- ------------------------------------
5-Year 3.91% 6.71%
- ------------------------------------
10-Year 4.27% 6.32%
- ------------------------------------
INDUSTRIES
(as a % of total investments)
- ------------------------------------
Tax Obligation/Limited 27.0%
- ------------------------------------
Transportation 17.7%
- ------------------------------------
U.S. Guaranteed 14.7%
- ------------------------------------
Utilities 9.5%
- ------------------------------------
Water and Sewer 8.9%
- ------------------------------------
Health Care 7.0%
- ------------------------------------
Tax Obligation/General 6.9%
- ------------------------------------
Other 8.3%
- ------------------------------------
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.
13
Nuveen Florida Quality Income Municipal Fund
NUF
Performance
OVERVIEW As of June 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 75%
AA 11%
A 7%
BBB 4%
N/R 3%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jul 0.072
Aug 0.072
Sep 0.068
Oct 0.068
Nov 0.068
Dec 0.0635
Jan 0.0635
Feb 0.0635
Mar 0.06
Apr 0.06
May 0.06
Jun 0.056
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/01/05 15.21
15.19
15.34
15.24
15.21
15.14
15.1
14.97
14.97
14.96
14.89
14.88
14.87
14.75
14.8
14.9
14.92
15
15.09
15.1
15.1
15.03
15
15.01
15.07
15.09
15.14
15.1
15.2
15.15
15.28
15.19
15.25
15.26
15.29
15.23
15.2
15.32
15.37
15.48
15.71
15.85
15.75
15.9
15.81
15.99
15.84
15.76
15.82
15.55
15.55
15.5
15.29
15.11
14.97
14.96
14.95
14.9
14.78
14.74
14.69
14.59
14.64
14.65
14.63
14.66
14.58
14.62
14.59
14.54
14.53
14.44
14.47
14.38
14.2
14.12
14.11
14.13
14.14
14.28
14.29
14.24
14.15
14.17
14.25
14.25
14.45
14.45
14.34
14.45
14.34
14.28
14.15
14.02
14.06
14.09
14.05
14.01
14.01
14.02
13.98
14.02
14.06
14.02
14.09
14.07
14.07
14.02
14.03
13.83
13.8
13.84
13.84
13.89
13.84
13.66
13.73
13.66
13.7
13.62
13.52
13.52
13.55
13.62
13.66
13.7
13.8
13.88
13.88
13.94
13.95
13.98
14.01
14.15
14.13
13.97
14.03
14.15
14.16
14.12
14.11
14.17
14.2
14.2
14.36
14.31
14.27
14.35
14.35
14.38
14.4
14.29
14.34
14.33
14.32
14.28
14.48
14.46
14.43
14.4
14.44
14.39
14.48
14.53
14.52
14.52
14.48
14.58
14.5
14.45
14.01
14.04
13.91
13.84
13.93
13.85
13.83
13.84
13.92
13.91
13.77
13.77
13.77
13.77
13.81
13.92
13.87
13.84
13.86
13.75
13.81
13.76
13.89
13.98
13.92
13.9
13.83
13.58
13.53
13.65
13.57
13.61
13.6
13.6
13.7
13.6
13.48
13.6
13.49
13.62
13.62
13.6
13.5
13.52
13.46
13.54
13.53
13.56
13.46
13.4
13.35
13.42
13.45
13.32
13.42
13.4
13.5
13.5
13.44
13.38
13.43
13.4
13.49
13.54
13.46
13.55
13.48
13.38
13.31
13.35
13.35
13.3
13.13
13.06
13.1
13.09
13.1
13.04
13.01
12.98
12.9
12.94
12.9
12.97
6/30/06 13.07
FUND SNAPSHOT
- ------------------------------------
Common Share Price $13.07
- ------------------------------------
Common Share
Net Asset Value $14.86
- ------------------------------------
Premium/(Discount) to NAV -12.05%
- ------------------------------------
Market Yield 5.14%
- ------------------------------------
Taxable-Equivalent Yield1 7.14%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $212,504
- ------------------------------------
Average Effective
Maturity on Securities (Years) 15.31
- ------------------------------------
Leverage-Adjusted Duration 8.17
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/17/91)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
1-Year -9.64% -0.55%
- ------------------------------------
5-Year 3.86% 6.51%
- ------------------------------------
10-Year 4.96% 6.12%
- ------------------------------------
INDUSTRIES
(as a % of total investments)
- ------------------------------------
Tax Obligation/Limited 29.7%
- ------------------------------------
Transportation 16.9%
- ------------------------------------
Health Care 9.9%
- ------------------------------------
Utilities 8.7%
- ------------------------------------
Housing/Multifamily 6.1%
- ------------------------------------
Tax Obligation/General 6.1%
- ------------------------------------
Water and Sewer 6.0%
- ------------------------------------
Education and Civic
Organizations 5.6%
- ------------------------------------
U.S. Guaranteed 5.1%
- ------------------------------------
Other 5.9%
- ------------------------------------
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
Nuveen Insured Florida Premium Income Municipal Fund
NFL
Performance
OVERVIEW As of June 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 91%
U.S. Guaranteed 9%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.073
Aug 0.073
Sep 0.0695
Oct 0.0695
Nov 0.0695
Dec 0.0695
Jan 0.0695
Feb 0.0695
Mar 0.066
Apr 0.066
May 0.066
Jun 0.063
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/01/05 16.63
16.6
16.82
16.7
16.85
16.7
16.67
16.41
16.33
16.31
16.37
16.29
16.27
16.23
16.24
16.22
16.18
16.3
16.35
16.25
16.25
16.17
16.17
16.2
16.15
16.06
16.02
16.01
16.11
16.01
16.03
16.06
16.1
16.05
16.1
16.02
16.05
15.99
16.05
16.09
16.16
16.23
16.22
16.3
16.3
16.27
16.23
16.14
16.11
16.15
16.08
15.96
15.92
15.64
15.57
15.51
15.61
15.53
15.44
15.27
15.25
15.19
15.31
15.33
15.41
15.26
15.34
15.5
15.45
15.51
15.42
15.53
15.48
15.42
15.48
15.22
15.06
14.9
14.9
15.11
15.06
15.16
14.83
15
15.02
15.19
15.31
15.23
15.18
15.05
15.2
15.22
15.03
15
14.94
14.85
14.81
14.85
14.91
14.68
14.72
14.77
14.77
14.8
14.85
14.81
14.77
14.8
14.83
14.76
14.79
14.83
14.94
14.99
15.03
14.77
14.83
14.84
14.93
14.83
14.71
14.83
14.8
14.82
14.86
14.92
14.99
15.03
15.03
15.15
15.27
15.35
15.47
15.46
15.43
15.42
15.6
15.64
15.58
15.64
15.7
15.81
16.02
15.98
15.88
15.75
15.92
15.85
15.92
15.89
16.05
16.04
16.11
16.03
16.12
16.15
16.23
16
15.92
16.05
16.01
16.1
16.08
16.1
16.11
16.2
16.12
16.12
16.02
15.98
15.65
15.72
15.6
15.44
15.5
15.5
15.44
15.3
15.36
15.45
15.48
15.45
15.37
15.41
15.32
15.32
15.27
15.1
15.13
15.06
15.19
15.2
15.31
15.29
15.29
15.28
15.32
15.3
15.19
15.32
15.35
15.24
15.18
15.04
15.01
14.98
14.87
14.86
14.85
15.06
15.06
14.89
14.75
14.81
14.8
14.86
14.79
14.71
14.63
14.49
14.5
14.43
14.48
14.35
14.45
14.34
14.39
14.23
14.19
13.99
14.02
13.82
13.98
14
14.11
14.15
14.18
14.17
14.13
14.2
14.17
14.15
14.05
13.97
13.99
14.01
14.02
13.95
13.88
13.9
13.86
13.85
13.82
13.77
6/30/06 13.74
FUND SNAPSHOT
- ------------------------------------
Common Share Price $13.74
- ------------------------------------
Common Share
Net Asset Value $15.14
- ------------------------------------
Premium/(Discount) to NAV -9.25%
- ------------------------------------
Market Yield 5.50%
- ------------------------------------
Taxable-Equivalent Yield1 7.64%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $217,904
- ------------------------------------
Average Effective
Maturity on Securities (Years) 15.87
- ------------------------------------
Leverage-Adjusted Duration 7.49
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/17/92)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
1-Year -12.56% -0.95%
- ------------------------------------
5-Year 5.15% 6.07%
- ------------------------------------
10-Year 6.22% 6.59%
- ------------------------------------
INDUSTRIES
(as a % of total investments)
- ------------------------------------
Tax Obligation/Limited 38.8%
- ------------------------------------
Water and Sewer 20.1%
- ------------------------------------
Transportation 11.9%
- ------------------------------------
Housing/Multifamily 9.0%
- ------------------------------------
U.S. Guaranteed 8.6%
- ------------------------------------
Other 11.6%
- ------------------------------------
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 paid shareholders a capital gains distribution in December 2005 of
$0.1440 per share.
15
Nuveen Insured Florida Tax-Free Advantage Municipal Fund
NWF
Performance
OVERVIEW As of June 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 83%
U.S. Guaranteed 7%
AA (Uninsured) 2%
A (Uninsured) 5%
N/R (Uninsured) 3%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jul 0.0595
Aug 0.0595
Sep 0.0575
Oct 0.0575
Nov 0.0575
Dec 0.0575
Jan 0.0575
Feb 0.0575
Mar 0.0575
Apr 0.0575
May 0.0575
Jun 0.0575
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/01/05 14.26
14.23
14.29
14.42
14.42
14.42
14.52
14.62
14.6
14.51
14.69
14.94
15.32
15.3
14.95
14.83
14.77
14.8
15
15.34
15.34
15.16
15.08
15.01
14.94
14.91
14.92
14.8
14.85
14.59
14.67
14.58
14.68
14.82
14.84
14.82
14.67
14.61
14.5
14.55
14.53
14.55
14.56
14.59
14.59
14.6
14.53
14.68
14.5
14.46
14.41
14.38
14.36
14.15
14.17
14.25
14.07
14.28
14.03
13.95
13.91
13.92
14
14.01
14.04
14.03
14.08
14
14.07
14.05
14.06
13.89
13.76
13.71
13.79
13.58
13.5
13.57
13.46
13.75
13.7
13.56
13.53
13.57
13.58
13.78
13.8
13.65
13.6
13.58
13.6
13.7
13.56
13.41
13.43
13.32
13.39
13.3
13.29
13.29
13.32
13.3
13.29
13.29
13.19
13.15
13.26
13.19
13.09
13.14
13.21
13.22
13.2
13.21
13.18
13.1
13.1
13.13
13.19
13.14
13.14
13.14
13.19
13.27
13.22
13.29
13.28
13.27
13.27
13.45
13.52
13.64
13.71
13.72
13.62
13.53
13.65
13.76
13.75
13.58
13.53
13.6
13.67
13.81
13.86
13.74
13.77
13.76
13.73
13.77
13.75
13.73
13.73
13.67
13.67
13.64
13.75
13.7
13.67
13.74
13.74
13.72
13.86
13.73
13.73
13.68
13.58
13.61
13.78
13.78
13.72
13.6
13.64
13.7
13.61
13.7
13.7
13.65
13.51
13.67
13.75
13.72
13.7
13.77
13.8
13.86
13.83
13.7
13.72
13.69
13.81
13.68
13.68
13.92
13.9
13.89
13.95
13.95
13.75
13.74
13.8
13.86
13.71
13.79
13.85
13.75
13.7
13.75
13.7
13.64
13.64
13.68
13.57
13.68
13.68
13.5
13.38
13.31
13.23
13.17
13.17
13.11
13.1
13.13
12.96
13.06
12.96
13.2
12.98
12.96
13
13
13
13.06
13.23
13.4
13.7
13.51
13.51
13.55
13.73
13.47
13.47
13.31
13.35
13.25
13.21
13.23
13.2
13.2
13.35
13.31
13.42
13.28
6/30/06 13.37
FUND SNAPSHOT
- ------------------------------------
Common Share Price $13.37
- ------------------------------------
Common Share
Net Asset Value $14.07
- ------------------------------------
Premium/(Discount) to NAV -4.98%
- ------------------------------------
Market Yield 5.16%
- ------------------------------------
Taxable-Equivalent Yield1 7.17%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $54,625
- ------------------------------------
Average Effective
Maturity on Securities (Years) 17.76
- ------------------------------------
Leverage-Adjusted Duration 7.76
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/21/02)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
1-Year -1.43% 0.03%
- ------------------------------------
Since
Inception 2.18% 4.98%
- ------------------------------------
INDUSTRIES
(as a % of total investments)
- ------------------------------------
Tax Obligation/Limited 46.5%
- ------------------------------------
Water and Sewer 13.8%
- ------------------------------------
Education and Civic
Organizations 10.0%
- ------------------------------------
Health Care 8.3%
- ------------------------------------
Transportation 7.3%
- ------------------------------------
U.S. Guaranteed 6.5%
- ------------------------------------
Other 7.6%
- ------------------------------------
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.
16
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
THE BOARD 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 (the Funds) as of June 30, 2006, 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
each of 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, 2006, 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, 2006, the results
of their operations for the year then ended, changes in their net assets for
each of the two years in the period then ended, and their financial highlights
for each of the periods indicated therein in conformity with U.S. generally
accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
August 9, 2006
17
Nuveen Florida Investment Quality Municipal Fund (NQF)
Portfolio of
INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.1% (1.4% OF TOTAL INVESTMENTS)
$ 5,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 5,091,250
Asset-Backed Refunding Bonds, Series 2002, 5.500%, 5/15/39
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.0% (2.6% OF TOTAL INVESTMENTS)
1,295 Broward County Educational Facilities Authority, Florida, 4/14 at 100.00 AAA 1,377,051
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 2,057,080
Revenue Bonds, Nova Southeastern University, Series 2004B,
5.625%, 4/01/34
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 2,376,997
3,305 5.000%, 4/01/22 - AMBAC Insured 4/14 at 100.00 AAA 3,408,645
575 Osceola County Industrial Development Authority, Florida, 8/11 at 101.00 AAA 585,689
Industrial Development Revenue Bonds, P.M. Wells Charter
School Project, Series 2001A, 5.000%, 8/01/23 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
9,465 Total Education and Civic Organizations 9,805,462
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 10.7% (7.0% OF TOTAL INVESTMENTS)
1,000 Brevard County Health Facilities Authority, Florida, Revenue 4/16 at 100.00 A 1,000,150
Bonds, Health First Inc. Project, Series 2005, 5.000%, 4/01/34
1,000 Halifax Hospital Medical Center, Florida, Revenue Bonds, 6/16 at 100.00 N/R 1,015,020
Series 2006, 5.250%, 6/01/26
3,000 Highlands County Health Facilities Authority, Florida, Hospital 11/15 at 100.00 A+ 3,000,930
Revenue Bonds, Adventist Health System, Series 2005B,
5.000%, 11/15/30
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 A3 1,025,670
2,330 5.250%, 10/01/34 10/13 at 100.00 A3 2,385,943
2,345 Leesburg, Florida, Hospital Revenue Bonds, Leesburg Regional 7/12 at 100.00 BBB+ 2,395,605
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 3,066,210
Revenue Refunding Bonds, Miami Children's Hospital,
Series 2001A, 5.125%, 8/15/26 - AMBAC Insured
550 North Broward Hospital District, Florida, Revenue and 1/11 at 101.00 A- 577,967
Improvement Bonds, Series 2001, 6.000%, 1/15/31
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 3,488,601
2,340 5.625%, 12/01/31 12/11 at 101.00 A 2,407,064
5,375 South Broward Hospital District, Florida, Hospital Revenue 5/12 at 101.00 AA- 5,651,221
Bonds, Series 2002, 5.625%, 5/01/32
- ------------------------------------------------------------------------------------------------------------------------------------
25,350 Total Health Care 26,014,381
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.6% (1.0% OF TOTAL INVESTMENTS)
1,090 Broward County Housing Finance Authority, Florida, Multifamily 5/10 at 101.00 AAA 1,114,089
Housing Revenue Bonds, Emerald Palms Apartments,
Series 2001A, 5.600%, 7/01/21 (Alternative Minimum Tax)
135 Florida Housing Finance Agency, General Mortgage Revenue 12/06 at 100.00 AA 137,601
Refunding Bonds, Series 1992A, 6.400%, 6/01/24
2,500 Florida Housing Finance Agency, Housing Revenue Bonds, 9/06 at 102.00 AAA 2,553,625
Mariner Club Apartments, Series 1996K-1, 6.375%, 9/01/36 -
AMBAC Insured (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
3,725 Total Housing/Multifamily 3,805,315
- ------------------------------------------------------------------------------------------------------------------------------------
18
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.7% (0.5% OF TOTAL INVESTMENTS)
$ 575 Florida Housing Finance Agency, Homeowner Mortgage Revenue 1/07 at 102.00 AA $ 577,996
Bonds, New Money and Refunding Issue, Series 1996-2,
6.350%, 7/01/28 (Alternative Minimum Tax)
1,200 Florida Housing Finance Agency, Homeowner Mortgage Revenue 7/07 at 102.00 AAA 1,221,072
Bonds, Series 1997-2, 5.900%, 7/01/29 - MBIA Insured
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
1,775 Total Housing/Single Family 1,799,068
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.9% (1.2% OF TOTAL INVESTMENTS)
1,750 Palm Beach County Health Facilities Authority, Florida, 11/06 at 102.00 BBB+ 1,784,265
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 1,184,265
1,565 5.625%, 8/01/34 8/14 at 101.00 N/R 1,587,583
- ------------------------------------------------------------------------------------------------------------------------------------
4,440 Total Long-Term Care 4,556,113
- ------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.4% (1.6% OF TOTAL INVESTMENTS)
5,400 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 5,932,170
Exempt Facilities Remarketed Revenue Bonds, National
Gypsum Company, Apollo Beach Project, Series 2000B,
7.125%, 4/01/30 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 10.5% (6.9% OF TOTAL INVESTMENTS)
1,920 Florida Department of Transportation, Full Faith and Credit 7/14 at 101.00 AAA 2,043,168
Right-of-Way Acquisition and Bridge Construction Bonds,
Series 2004A, 5.250%, 7/01/19
1,500 Florida State Board of Education, Full Faith and Credit Public 6/12 at 101.00 AAA 1,544,115
Education Capital Outlay Bonds, Series 2002F,
5.000%, 6/01/22 - MBIA Insured
2,080 Florida State Board of Education, Full Faith and Credit Public 6/13 at 100.00 AAA 2,154,173
Education Capital Outlay Bonds, Series 2003J, 5.000%, 6/01/21 -
AMBAC Insured
9,230 Florida State Board of Education, Full Faith and Credit, 6/11 at 101.00 AAA 9,447,090
Public Education Capital Outlay Bonds, Series 2001C,
5.125%, 6/01/31 - FGIC Insured
8,000 Florida State Board of Education, Full Faith and Credit, 6/12 at 100.00 AAA 8,517,200
Public Education Capital Outlay Refunding Bonds,
Series 2002D, 5.375%, 6/01/16
1,750 Reedy Creek Improvement District, Orange and Osceola 4/14 at 100.00 AAA 1,809,517
Counties, Florida, General Obligation Bonds, Series 2004A,
5.000%, 6/01/20 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
24,480 Total Tax Obligation/General 25,515,263
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 41.2% (27.0% OF TOTAL INVESTMENTS)
5,625 Broward County School Board, Florida, Certificates of 7/14 at 100.00 AAA 5,942,644
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 1,716,532
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 1,032,460
Series 2002, 5.000%, 10/01/21 - AMBAC Insured
1,280 Florida Intergovernmental Finance Commission, Capital 8/11 at 100.00 Aaa 1,314,317
Revenue Bonds, Daytona Beach Community Redevelopment
Agency, Series 2001C-1, 5.000%, 2/01/20 - AMBAC Insured
1,685 Florida Municipal Loan Council, Revenue Bonds, Series 2003A, 5/13 at 100.00 AAA 1,734,000
5.000%, 5/01/22 - MBIA Insured
5,000 Florida Ports Financing Commission, Revenue Bonds, State 6/07 at 101.00 AAA 5,095,600
Transportation Trust Fund, Series 1996, 5.375%, 6/01/27 -
MBIA Insured (Alternative Minimum Tax)
3,000 Florida State Department of Management Services, Certificates 8/15 at 101.00 AAA 3,084,870
of Participation, Series 2006A, 5.000%, 8/01/23 - MBIA Insured
5,000 Hernando County, Florida, Revenue Bonds, Criminal Justice No Opt. Call AAA 6,337,000
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 1,620,864
Revenue Bonds, Series 2004, 5.000%, 5/01/24 - AMBAC Insured
19
Nuveen Florida Investment Quality Municipal Fund (NQF) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,190 Hillsborough County, Florida, Revenue Refunding Bonds, 10/15 at 100.00 AAA $ 2,251,101
Tampa Bay Arena, Series 2005, 5.000%, 10/01/25 -
FGIC Insured
5,015 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/13 at 100.00 AAA 5,296,642
Bonds, Series 2003, 5.250%, 10/01/21 - MBIA Insured
2,000 Jacksonville, Florida, Guaranteed Entitlement Revenue 10/12 at 100.00 AAA 2,053,840
Refunding and Improvement Bonds, Series 2002,
5.000%, 10/01/22 - FGIC Insured
2,195 Manatee County, Florida, Revenue Bonds, Series 2004, 10/14 at 100.00 AAA 2,267,523
5.000%, 10/01/22 - FGIC Insured
Miami-Dade County, Florida, Beacon Tradeport Community
Development District, Special Assessment Bonds,
Commercial Project, Series 2002A:
2,275 5.250%, 5/01/16 - RAAI Insured 5/12 at 102.00 AA 2,400,011
1,700 5.625%, 5/01/32 - RAAI Insured 5/12 at 102.00 AA 1,808,613
1,000 Orange County School Board, Florida, Certificates of 8/16 at 100.00 AAA 1,021,820
Participation, Series 2006A, 5.000%, 8/01/30 - 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 1,433,603
1,495 5.125%, 4/01/20 - AMBAC Insured 4/12 at 100.00 AAA 1,552,916
1,225 5.125%, 4/01/21 - AMBAC Insured 4/12 at 100.00 AAA 1,274,490
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 3,600,649
3,660 5.000%, 4/01/21 - MBIA Insured 4/14 at 100.00 Aaa 3,779,609
3,745 5.000%, 4/01/22 - MBIA Insured 4/14 at 100.00 Aaa 3,862,443
2,000 5.000%, 4/01/23 - MBIA Insured 4/14 at 100.00 Aaa 2,058,760
4,000 Palm Beach County School Board, Florida, Certificates of 8/12 at 100.00 AAA 4,053,200
Participation, Series 2002D, 5.000%, 8/01/28 - FSA Insured
2,560 Palm Beach County School Board, Florida, Certificates of 8/14 at 100.00 AAA 2,624,051
Participation, Series 2004A, 5.000%, 8/01/23 - FGIC Insured
4,490 Palm Beach County, Florida, Public Improvement Revenue 6/15 at 100.00 AAA 4,601,846
Bonds, Biomedical Research Park Project, Series 2005A,
5.000%, 6/01/25 - AMBAC Insured
Pasco County School Board, Florida, Certificates of
Participation, Series 2004A:
1,000 5.000%, 8/01/19 - AMBAC Insured No Opt. Call AAA 1,032,510
2,335 5.000%, 8/01/21 - AMBAC Insured 8/14 at 100.00 AAA 2,398,185
2,500 Polk County School District, Florida, Sales Tax Revenue 10/14 at 100.00 AAA 2,659,800
Bonds, Series 2004, 5.250%, 10/01/18 - FSA Insured
1,000 Sarasota County School Board, Florida, Certificates of No Opt. Call Aaa 1,051,420
Participation, Series 2004, 5.000%, 7/01/15 - FGIC Insured
650 Sonoma Bay Community Development District, Florida, Special 5/15 at 100.00 N/R 649,474
Assessment Bonds, Series 2005A, 5.450%, 5/01/36
2,750 St. John's County, Florida, Transportation Improvement 10/13 at 100.00 AAA 2,830,658
Revenue Bonds, Series 2003, 5.000%, 10/01/23 -
AMBAC 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 1,414,388
2,835 5.750%, 10/01/25 - MBIA Insured No Opt. Call AAA 3,249,817
8,605 Volusia County School Board, Florida, Sales Tax Revenue 10/12 at 100.00 AAA 9,192,894
Bonds, Series 2002, 5.375%, 10/01/15 - FSA Insured
2,075 Volusia County, Florida, Gas Tax Revenue Bonds, Series 2004, 10/14 at 100.00 AAA 2,146,442
5.000%, 10/01/21 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
95,215 Total Tax Obligation/Limited 100,444,992
- ------------------------------------------------------------------------------------------------------------------------------------
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 26.9% (17.7% OF TOTAL INVESTMENTS)
$ 11,500 Broward County, Florida, Airport System Revenue Bonds, 10/11 at 101.00 AAA $ 11,785,200
Series 2001J-1, 5.250%, 10/01/26 - AMBAC Insured
(Alternative Minimum Tax)
2,150 Broward County, Florida, Airport System Revenue Bonds, 10/14 at 100.00 AAA 2,201,686
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 3,582,985
5.750%, 10/01/26 - MBIA Insured (Alternative Minimum Tax)
12,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/09 at 101.00 AAA 12,108,000
Revenue Bonds, Series 1999A, 5.125%, 10/01/28 -
FGIC Insured (Alternative Minimum Tax)
4,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 4,085,440
Revenue Bonds, Series 2002B, 5.125%, 10/01/21 -
FSA Insured (Alternative Minimum Tax)
2,590 Hillsborough County Aviation Authority, Florida, Revenue 10/06 at 102.00 AAA 2,653,300
Bonds, Tampa International Airport, Series 1996A,
6.000%, 10/01/23 - FGIC Insured (Alternative Minimum Tax)
2,500 Lee County, Florida, Airport Revenue Bonds, Series 2006, 10/15 at 100.00 AAA 2,537,750
5.000%, 10/01/33 - FSA Insured
2,090 Lee County, Florida, Transportation Facilities Revenue Bonds, 10/14 at 100.00 AAA 2,173,663
Series 2004B, 5.000%, 10/01/19 - AMBAC 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 4,290,931
6,690 5.000%, 7/01/20 - FGIC Insured 7/14 at 100.00 AAA 6,924,083
1,750 Miami-Dade County Industrial Development Authority, Florida, 10/09 at 101.00 AAA 1,861,318
Industrial Development Revenue Bonds, Airis Miami II LLC -
Miami International Airport, Series 1999, 6.000%, 10/15/25 -
AMBAC Insured (Alternative Minimum Tax)
5,390 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/12 at 100.00 AAA 5,769,887
Miami International Airport, Series 2002, 5.750%, 10/01/18 -
FGIC Insured (Alternative Minimum Tax)
5,360 Tampa-Hillborough County Expressway Authority, Florida, 7/15 at 101.00 AAA 5,673,614
Revenue Bonds, Series 2005, 5.000%, 7/01/16 -
AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
63,655 Total Transportation 65,647,857
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 22.4% (14.7% OF TOTAL INVESTMENTS) (4)
7,225 Dade County, Florida, Special Obligation and Refunding Bonds, 10/08 at 48.83 AAA 3,234,199
Series 1996B, 0.000%, 10/01/20 (Pre-refunded 10/01/08) -
AMBAC Insured
20,000 Escambia County Health Facilities Authority, Florida, Revenue 11/09 at 101.00 AAA 21,424,997
Bonds, Ascension Health Credit Group, Series 1999A-2,
6.000%, 11/15/31 (Pre-refunded 11/15/09)
4,600 Highlands County Health Facilities Authority, Florida, 11/11 at 101.00 A+ (4) 5,062,714
Hospital Revenue Bonds, Adventist Health System/Sunbelt
Obligated Group, Series 2001A, 6.000%, 11/15/31
(Pre-refunded 11/15/11)
5,450 North Broward Hospital District, Florida, Revenue and 1/11 at 101.00 A- (4) 5,942,353
Improvement Bonds, Series 2001, 6.000%, 1/15/31
(Pre-refunded 1/15/11)
6,000 Orange County Health Facilities Authority, Florida, Hospital 11/10 at 101.00 A+ (4) 6,626,340
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2000, 6.500%, 11/15/30 (Pre-refunded 11/15/10)
3,695 Orange County Health Facilities Authority, Florida, Hospital 12/12 at 100.00 A (4) 4,026,774
Revenue Bonds, Orlando Regional Healthcare System,
Series 2002, 5.750%, 12/01/27 (Pre-refunded 12/01/12)
4,000 Pinellas County Health Facilities Authority, Florida, Revenue 5/13 at 100.00 A1 (4) 4,329,840
Bonds, Baycare Health System, Series 2003, 5.500%, 11/15/33
(Pre-refunded 5/15/13)
3,570 Seminole County, Florida, Water and Sewer Revenue No Opt. Call AAA 4,071,478
Refunding and Improvement Bonds, Series 1992,
6.000%, 10/01/19 - MBIA Insured (ETM)
- ------------------------------------------------------------------------------------------------------------------------------------
54,540 Total U.S. Guaranteed 54,718,695
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 14.5% (9.5% OF TOTAL INVESTMENTS)
1,000 Florida Municipal Power Agency, Power Supply Revenue No Opt. Call Aaa 1,048,580
Bonds, All Requirements Project, Series 2006A,
5.000%, 10/01/11 - FSA Insured
4,330 Hillsborough County Industrial Development Authority, Florida, 10/12 at 100.00 Baa2 4,420,454
Pollution Control Revenue Bonds, Tampa Electric Company
Project, Series 2002, 5.100%, 10/01/13
21
Nuveen Florida Investment Quality Municipal Fund (NQF) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 1,050 Jacksonville Beach, Florida, Utility Revenue Refunding Bonds, 10/10 at 100.00 Aaa $ 1,084,818
Series 2002, 5.000%, 4/01/17 - AMBAC Insured
4,250 Lakeland, Florida, Energy System Revenue Refunding Bonds, No Opt. Call AAA 4,657,745
Series 1999C, 6.050%, 10/01/11 - FGIC Insured
5,000 Orlando Utilities Commission, Florida, Water and Electric No Opt. Call Aa1 5,397,300
Revenue Refunding Bonds, Series 1992, 6.000%, 10/01/10
7,345 Orlando Utilities Commission, Florida, Water and Electric 10/11 at 101.00 Aa1 7,769,394
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 5,289,950
Revenue Refunding Bonds, Series 2002C, 5.250%, 10/01/18
5,550 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 5,736,203
Series 2002II, 5.125%, 7/01/26 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
33,525 Total Utilities 35,404,444
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.6% (8.9% OF TOTAL INVESTMENTS)
3,310 Cocoa, Florida, Water and Sewerage System Revenue No Opt. Call AAA 3,703,956
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 2,076,840
3,390 5.000%, 10/01/21 - FSA Insured 10/13 at 100.00 Aaa 3,500,039
1,000 Jacksonville, Florida, Water and Sewer Revenue Bonds, 8/06 at 101.00 AAA 1,021,800
United Water Florida Project, Series 1995, 6.350%, 8/01/25 -
AMBAC Insured (Alternative Minimum Tax)
1,525 Lee County, Florida, Water and Sewer Revenue Refunding 10/13 at 100.00 Aaa 1,579,748
Bonds, Series 2003A, 5.000%, 10/01/20 - MBIA Insured
8,300 Miami-Dade County, Florida, Water and Sewer System Revenue 10/09 at 101.00 AAA 8,408,315
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 1,231,412
Series 2002, 5.000%, 9/01/14
2,060 Polk County, Florida, Utility System Revenue Bonds, 10/13 at 100.00 Aaa 2,173,465
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 2,856,422
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 2,335,015
Series 2005A, 5.000%, 10/01/27 - FGIC Insured
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,680 Seminole County, Florida, Water and Sewer Revenue No Opt. Call AAA $ 1,897,745
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 740,110
1,585 5.000%, 4/01/20 - MBIA Insured 4/11 at 101.00 AAA 1,631,551
- ------------------------------------------------------------------------------------------------------------------------------------
31,780 Total Water and Sewer 33,156,418
- ------------------------------------------------------------------------------------------------------------------------------------
$ 358,350 Total Investments (cost $357,623,352) - 152.5% 371,891,428
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 4,021,685
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.1)% (132,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 243,913,113
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
23
Nuveen Florida Quality Income Municipal Fund (NUF)
Portfolio of
INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 8.6% (5.6% 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 $ 1,031,600
500 5.625%, 4/01/34 4/14 at 100.00 BBB 514,270
4,965 Florida Board of Education, Lottery Revenue Bonds, 7/11 at 101.00 AAA 5,116,681
Series 2001B, 5.000%, 7/01/20 - FGIC Insured
2,580 Florida State Education System, Housing Facility Revenue No Opt. Call AAA 2,727,137
Bonds, Florida International University, Series 2004A,
5.000%, 7/01/14 - MBIA Insured
2,345 FSU Financial Assistance Inc., Florida, General Revenue Bonds, 10/14 at 100.00 AAA 2,456,223
Educational and Athletic Facilities Improvements,
Series 2004, 5.000%, 10/01/16 - AMBAC Insured
3,905 Miami-Dade County Educational Facilities Authority, Florida, 4/14 at 100.00 AAA 4,042,964
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 2,355,308
Athletic Association, Series 2004A, 5.125%, 10/01/21 -
FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
17,570 Total Education and Civic Organizations 18,244,183
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 15.1% (9.9% OF TOTAL INVESTMENTS)
1,000 Brevard County Health Facilities Authority, Florida, Revenue 4/16 at 100.00 A 1,000,150
Bonds, Health First Inc. Project, Series 2005, 5.000%, 4/01/34
1,500 Citrus County Hospital Board, Florida, Revenue Refunding 8/13 at 100.00 Baa3 1,604,175
Bonds, Citrus Memorial Hospital, Series 2002, 6.375%, 8/15/32
1,000 Halifax Hospital Medical Center, Florida, Revenue Bonds, 6/16 at 100.00 N/R 1,015,020
Series 2006, 5.250%, 6/01/26
1,000 Highlands County Health Facilities Authority, Florida, Hospital 11/15 at 100.00 A+ 997,800
Revenue Bonds, Adventist Health System, Series 2005C,
5.000%, 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 A3 512,835
1,590 5.250%, 10/01/34 10/13 at 100.00 A3 1,628,176
2,000 Hillsborough County Industrial Development Authority, 10/13 at 100.00 A3 2,058,120
Florida, Hospital Revenue Refunding Bonds, Tampa General
Hospital, Series 2003A, 5.250%, 10/01/24
8,500 Jacksonville Economic Development Commission, Florida, 11/11 at 101.00 AA 8,881,310
Healthcare Facilities Revenue Bonds, Mayo Clinic,
Series 2001A, 5.500%, 11/15/36
3,430 Leesburg, Florida, Hospital Revenue Refunding Bonds, No Opt. Call BBB+ 3,499,458
Leesburg Regional Medical Center Project, Series 2003,
5.000%, 7/01/12
825 North Broward Hospital District, Florida, Revenue and 1/11 at 101.00 A- 866,951
Improvement Bonds, Series 2001, 6.000%, 1/15/31
5,000 Orange County Health Facilities Authority, Florida, Hospital 11/12 at 101.00 A+ 5,213,850
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2002, 5.250%, 11/15/18
4,625 South Broward Hospital District, Florida, Hospital Revenue 5/12 at 101.00 AA- 4,862,679
Bonds, Series 2002, 5.625%, 5/01/32
- ------------------------------------------------------------------------------------------------------------------------------------
30,970 Total Health Care 32,140,524
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 9.4% (6.1% 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 1,531,425
1,000 6.300%, 1/01/32 7/06 at 102.00 AAA 1,020,810
120 Florida Housing Finance Agency, General Mortgage Revenue 12/06 at 100.00 AA 122,312
Refunding Bonds, Series 1992A, 6.400%, 6/01/24
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 1,000 Florida Housing Finance Agency, Housing Revenue Bonds, 10/06 at 101.00 AAA $ 1,012,380
Holly Cove Apartments, Series 1995F, 6.150%, 10/01/25 -
AMBAC Insured (Alternative Minimum Tax)
5,790 Florida Housing Finance Corporation, FNMA Revenue Bonds, 10/10 at 102.00 Aaa 6,019,921
Villa de Mallorca Apartments, Series 2000H-1,
6.000%, 7/01/33 (Alternative Minimum Tax)
3,170 Florida Housing Finance Corporation, Housing Revenue 12/08 at 102.00 A+ 3,169,429
Refunding Bonds, Hunters Ridge at Deerwood Apartments,
Series 1998-0, 5.300%, 12/01/28
3,630 Miami-Dade County Housing Finance Authority, Florida, 1/11 at 102.00 AAA 3,772,296
Multifamily Housing Revenue Bonds, Sunset Bay Apartments,
Series 2000-5A, 5.950%, 7/01/30 - FSA Insured
(Alternative Minimum Tax)
3,240 Pinellas County Housing Finance Authority, Florida, Multifamily 1/08 at 100.00 AAA 3,283,027
Housing Revenue Bonds, Emerald Bay Apartments,
Series 1998A, 5.000%, 4/01/28 (Mandatory put 4/01/08)
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
19,450 Total Housing/Multifamily 19,931,600
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.7% (0.6% OF TOTAL INVESTMENTS)
670 Broward County Housing Finance Authority, Florida, 4/10 at 25.36 Aaa 136,090
Single Family Mortgage Revenue Bonds, Series 2001C,
0.000%, 4/01/33 (Alternative Minimum Tax)
510 Broward County Housing Finance Authority, Florida, 4/09 at 25.51 Aaa 106,927
Single Family Mortgage Revenue Refunding Bonds,
Series 2000B, 0.000%, 4/01/29 (Alternative Minimum Tax)
310 Florida Housing Finance Agency, GNMA Collateralized No Opt. Call AAA 326,005
Home Ownership Revenue Refunding Bonds, Series 1987G-1,
8.595%, 11/01/17
135 Lee County Housing Finance Authority, Florida, Single Family 3/07 at 105.00 Aaa 135,726
Mortgage Revenue Bonds, Multi-County Program,
Series 1997A, Subseries 1, 7.200%, 3/01/27
(Alternative Minimum Tax)
45 Miami-Dade County Housing Authority, Florida, 4/08 at 101.50 Aaa 45,974
Home Owner Mortgage Revenue Bonds, Series 1999A-1,
5.550%, 10/01/19 (Alternative Minimum Tax)
780 Orange County Housing Finance Authority, Florida, 10/06 at 102.00 AAA 794,110
Single Family Mortgage Revenue Bonds, Series 1996A,
6.300%, 4/01/28 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
2,450 Total Housing/Single Family 1,544,832
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.7% (3.7% OF TOTAL INVESTMENTS)
7,285 Atlantic Beach, Florida, Healthcare Facilities Revenue 10/09 at 101.00 A 7,552,942
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+ 1,784,265
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 1,184,265
1,570 5.625%, 8/01/34 8/14 at 101.00 N/R 1,592,655
- ------------------------------------------------------------------------------------------------------------------------------------
11,730 Total Long-Term Care 12,114,127
- ------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.4% (1.6% OF TOTAL INVESTMENTS)
4,600 Hillsborough County Industrial Development Authority, 4/10 at 101.00 N/R 5,053,330
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% (6.1% OF TOTAL INVESTMENTS)
15,925 Florida State Board of Education, Full Faith and Credit Public 6/12 at 101.00 AAA 16,474,729
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 3,337,330
Counties, Florida, General Obligation Bonds, Series 2004A,
5.000%, 6/01/22 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
19,165 Total Tax Obligation/General 19,812,059
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 45.4% (29.7% OF TOTAL INVESTMENTS)
1,000 Alachua County School Board, Florida, Certificates of 7/11 at 101.00 Aaa 1,024,460
Participation, Series 2001, 5.000%, 7/01/21 - AMBAC Insured
25
Nuveen Florida Quality Income Municipal Fund (NUF) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,055 Bay County School Board, Florida, Certificates of Participation, 7/14 at 100.00 Aaa $ 1,079,086
Series 2004, 5.000%, 7/01/24 - AMBAC Insured
3,870 Broward County School Board, Florida, Certificates of 7/14 at 100.00 AAA 4,080,528
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 1,546,425
Series 2005, 5.000%, 10/01/23 - MBIA Insured
1,290 Escambia County, Florida, Tourist Development Revenue 10/12 at 100.00 AAA 1,338,388
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 8,777,334
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 402,511
1,590 0.000%, 11/01/26 - MBIA Insured No Opt. Call AAA 583,578
3,000 Florida State Department of Management Services, Certificates 8/15 at 101.00 AAA 3,084,870
of Participation, Series 2006A, 5.000%, 8/01/23 - MBIA Insured
1,430 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/11 at 100.00 AAA 1,466,251
Bonds, Series 2001, 5.000%, 10/01/23 - AMBAC Insured
2,090 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/13 at 100.00 AAA 2,153,912
Bonds, Series 2003, 5.000%, 10/01/22 - MBIA Insured
3,145 Jacksonville, Florida, Excise Taxes Revenue Refunding Bonds, 10/13 at 100.00 AAA 3,280,455
Series 2003C, 5.250%, 10/01/18 - MBIA Insured
(Alternative Minimum Tax)
2,230 Jacksonville, Florida, Guaranteed Entitlement Revenue 10/12 at 100.00 AAA 2,294,692
Refunding and Improvement Bonds, Series 2002,
5.000%, 10/01/21 - FGIC Insured
2,750 Jacksonville, Florida, Local Government Sales Tax Revenue 10/12 at 100.00 AAA 2,931,335
Refunding and Improvement Bonds, Series 2002,
5.375%, 10/01/17 - FGIC Insured
1,000 Jacksonville, Florida, Local Government Sales Tax Revenue No Opt. Call AAA 1,092,360
Refunding Bonds, Series 2001, 5.500%, 10/01/14 - FGIC 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 1,226,795
1,340 5.000%, 7/01/22 - AMBAC Insured 7/14 at 100.00 AAA 1,375,992
1,470 5.000%, 7/01/24 - AMBAC Insured 7/14 at 100.00 AAA 1,503,560
2,220 Lee County, Florida, Local Option Gas Tax Revenue Bonds, 10/14 at 100.00 Aaa 2,297,989
Series 2004, 5.000%, 10/01/19 - FGIC Insured
5,130 Manatee County School District, Florida, Sales Tax Revenue 10/13 at 100.00 AAA 5,356,233
Bonds, Series 2003, 5.000%, 10/01/17 - AMBAC Insured
Miami-Dade County, Florida, Beacon Tradeport Community
Development District, Special Assessment Bonds,
Commercial Project, Series 2002A:
1,975 5.500%, 5/01/22 - RAAI Insured 5/12 at 102.00 AA 2,098,043
850 5.625%, 5/01/32 - RAAI Insured 5/12 at 102.00 AA 904,307
2,475 Northern Palm Beach County Improvement District, Florida, 8/10 at 102.00 AA 2,679,385
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, 7/06 at 100.00 AAA 2,003,660
Series 1994, 6.125%, 1/01/24 - FGIC Insured
2,440 Orange County School Board, Florida, Certificates of 8/14 at 100.00 Aaa 2,506,026
Participation, Series 2004A, 5.000%, 8/01/22 - AMBAC Insured
8,000 Orange County School Board, Florida, Certificates of 8/16 at 100.00 AAA 8,174,560
Participation, Series 2006A, 5.000%, 8/01/30 - 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 3,397,233
3,400 5.125%, 1/01/23 - FGIC Insured 1/13 at 100.00 AAA 3,528,758
1,000 Orlando Community Redevelopment Agency, Florida, 4/12 at 100.00 AAA 1,042,620
Tax Increment Revenue Bonds, Republic Drive-Universal
Boulevard - I-4 Interchange Project, Series 2002,
5.125%, 4/01/19 - AMBAC Insured
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,040 Palm Beach County School Board, Florida, Certificates of 8/12 at 100.00 AAA $ 2,139,838
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 1,031,150
1,500 5.000%, 8/01/22 - FGIC Insured 8/14 at 100.00 AAA 1,540,590
1,000 Pasco County, Florida, Sales Tax Revenue Bonds, Series 2003, 12/13 at 100.00 Aaa 1,045,000
5.000%, 12/01/17 - AMBAC Insured
2,355 Plantation, Florida, Non-Ad Valorem Revenue Refunding and 8/13 at 100.00 Aaa 2,444,160
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 1,393,389
5.000%, 9/01/21 - MBIA Insured
11,815 Volusia County School Board, Florida, Sales Tax Revenue Bonds, 10/12 at 100.00 AAA 12,622,201
Series 2002, 5.375%, 10/01/14 - FSA Insured
1,000 Volusia County, Florida, Tax Revenue Bonds, Tourist 12/14 at 100.00 Aaa 1,029,380
Development, Series 2004, 5.000%, 12/01/24 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
94,230 Total Tax Obligation/Limited 96,477,054
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 25.9% (16.9% OF TOTAL INVESTMENTS)
2,225 Broward County, Florida, Airport System Revenue Bonds, 10/11 at 101.00 AAA 2,282,583
Series 2001J-1, 5.250%, 10/01/21 - AMBAC Insured
(Alternative Minimum Tax)
12,000 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 10/06 at 102.00 AAA 12,284,520
5.750%, 10/01/26 - MBIA Insured (Alternative Minimum Tax)
3,500 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/07 at 101.00 AAA 3,560,550
Revenue Bonds, Series 1997, 5.250%, 10/01/23 - FGIC Insured
(Alternative Minimum Tax)
4,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 4,085,440
Revenue Bonds, Series 2002B, 5.125%, 10/01/21 -
FSA Insured (Alternative Minimum Tax)
1,800 Jacksonville Port Authority, Florida, Port Facilities Revenue 11/06 at 102.00 AAA 1,844,100
Bonds, Series 1996, 5.625%, 11/01/18 - MBIA Insured
(Alternative Minimum Tax)
2,500 Lee County, Florida, Airport Revenue Bonds, Series 2006, 10/15 at 100.00 AAA 2,537,750
5.000%, 10/01/33 - FSA Insured
1,000 Lee County, Florida, Transportation Facilities Revenue Bonds, No Opt. Call AAA 1,057,750
Series 2004B, 5.000%, 10/01/14 - AMBAC 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 4,215,397
2,000 5.250%, 7/01/18 - FGIC Insured 7/14 at 100.00 AAA 2,124,720
2,000 5.000%, 7/01/23 - FGIC Insured 7/14 at 100.00 AAA 2,057,780
2,000 Miami-Dade County Expressway Authority, Florida, Toll System 7/11 at 101.00 Aaa 2,057,500
Revenue Refunding Bonds, Series 2001, 5.000%, 7/01/21 -
FGIC Insured
7,500 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/08 at 101.00 AAA 7,555,125
Miami International Airport, Series 1998A, 5.000%, 10/01/24 -
FGIC Insured (Alternative Minimum Tax)
4,000 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/08 at 101.00 AAA 4,033,960
Miami International Airport, Series 1998C, 5.000%, 10/01/23 -
MBIA Insured (Alternative Minimum Tax)
5,000 Tampa-Hillborough County Expressway Authority, Florida, 7/15 at 101.00 AAA 5,292,550
Revenue Bonds, Series 2005, 5.000%, 7/01/16 -
AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
53,480 Total Transportation 54,989,725
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 7.9% (5.1% OF TOTAL INVESTMENTS) (4)
1,500 Bradford County Health Facility Authority, Florida, Revenue No Opt. Call AAA 1,671,330
Refunding Bonds, Santa Fe Healthcare Inc., Series 1993,
6.050%, 11/15/16 (ETM)
2,600 Highlands County Health Facilities Authority, Florida, Hospital 11/11 at 101.00 A+ (4) 2,861,534
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2001A, 6.000%, 11/15/31 (Pre-refunded 11/15/11)
8,175 North Broward Hospital District, Florida, Revenue and 1/11 at 101.00 A- (4) 8,913,530
Improvement Bonds, Series 2001, 6.000%, 1/15/31
(Pre-refunded 1/15/11)
27
Nuveen Florida Quality Income Municipal Fund (NUF) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 3,000 Orange County Health Facilities Authority, Florida, Hospital 12/12 at 100.00 A (4) $ 3,269,370
Revenue Bonds, Orlando Regional Healthcare System,
Series 2002, 5.750%, 12/01/32 (Pre-refunded 12/01/12)
- ------------------------------------------------------------------------------------------------------------------------------------
15,275 Total U.S. Guaranteed 16,715,764
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.3% (8.7% OF TOTAL INVESTMENTS)
1,000 Florida Municipal Power Agency, Power Supply Revenue Bonds, No Opt. Call Aaa 1,048,580
All Requirements Project, Series 2006A, 5.000%, 10/01/11 -
FSA Insured
750 Gainesville, Florida, Utilities System Revenue Bonds, 10/13 at 100.00 AA 795,473
Series 2003A, 5.250%, 10/01/21
4,800 Hillsborough County Industrial Development Authority, 10/12 at 100.00 Baa2 4,900,272
Florida, Pollution Control Revenue Bonds, Tampa Electric
Company Project, Series 2002, 5.100%, 10/01/13
9,440 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 9,794,283
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 3,480,096
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 3,353,828
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 3,100,650
Series 2002II, 5.125%, 7/01/26 - FSA Insured
650 Reedy Creek Improvement District, Florida, Utility Revenue 10/15 at 100.00 AAA 668,135
Bonds, Series 2005-1, 5.000%, 10/01/25 - AMBAC Insured
1,170 Tallahassee, Florida, Consolidated Utility System Revenue 10/15 at 100.00 AAA 1,204,421
Bonds, Series 2005, 5.000%, 10/01/25 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
27,270 Total Utilities 28,345,738
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.1% (6.0% OF TOTAL INVESTMENTS)
1,365 Florida Governmental Utility Authority, Utility System Revenue 10/13 at 100.00 AAA 1,414,004
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 1,038,420
4,000 5.000%, 10/01/20 - FSA Insured 10/13 at 100.00 Aaa 4,143,600
JEA, Florida, Water and Sewerage System Revenue Bonds,
Series 2004A:
3,235 5.000%, 10/01/18 - FGIC Insured 10/13 at 100.00 AAA 3,367,441
5,090 5.000%, 10/01/19 - FGIC Insured 10/13 at 100.00 AAA 5,285,558
3,000 5.000%, 10/01/23 - FGIC Insured 10/13 at 100.00 AAA 3,087,990
1,065 Lee County Industrial Development Authority, Florida, 11/12 at 100.00 AAA 1,091,359
Utilities Revenue Bonds, Bonita Springs Utilities Inc. Project,
Series 2002, 5.000%, 11/01/19 - MBIA Insured (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
18,755 Total Water and Sewer 19,428,372
- ------------------------------------------------------------------------------------------------------------------------------------
$ 314,945 Total Investments (cost $317,930,089) - 152.8% 324,797,308
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 4,706,721
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.1)% (117,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 212,504,029
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
28
Nuveen Insured Florida Premium Income Municipal Fund (NFL)
Portfolio of
INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 7.1% (4.7% OF TOTAL INVESTMENTS)
$ 2,000 Brevard County Health Facilities Authority, Florida, Hospital 10/06 at 101.00 AAA $ 2,027,440
Revenue Bonds, Holmes Regional Medical Center Project,
Series 1996, 5.625%, 10/01/14 - MBIA Insured
2,500 Hillsborough County Industrial Development Authority, Florida, No Opt. Call AAA 2,946,625
Industrial Development Revenue Bonds, University Community
Hospital, Series 1994, 6.500%, 8/15/19 - MBIA Insured
7,220 Miami-Dade County Health Facility Authority, Florida, Hospital 8/11 at 101.00 AAA 7,379,345
Revenue Refunding Bonds, Miami Children's Hospital,
Series 2001A, 5.125%, 8/15/26 - AMBAC Insured
3,015 North Broward Hospital District, Florida, Revenue Refunding 1/07 at 101.00 AAA 3,063,511
and Improvement Bonds, Series 1997, 5.375%, 1/15/24 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
14,735 Total Health Care 15,416,921
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 13.5% (9.0% OF TOTAL INVESTMENTS)
975 Broward County Housing Finance Authority, Florida, 6/07 at 102.00 AAA 997,552
GNMA 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 Bonds, Saxon Manor Isles Project, Series 1998B:
1,260 5.350%, 9/01/18 - FSA Insured (Alternative Minimum Tax) 3/08 at 101.00 AAA 1,276,355
1,000 5.400%, 9/01/23 - FSA Insured (Alternative Minimum Tax) 3/08 at 101.00 AAA 1,012,870
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 - FSA Insured (Alternative Minimum Tax) 3/08 at 101.00 AAA 1,053,499
1,400 5.400%, 9/01/23 - FSA Insured (Alternative Minimum Tax) 3/08 at 101.00 AAA 1,418,018
Dade County Housing Finance Authority, Florida, Multifamily
Mortgage Revenue Bonds, Siesta Pointe Apartments Project, Series
1997A:
1,230 5.650%, 9/01/17 - FSA Insured (Alternative Minimum Tax) 9/07 at 101.00 AAA 1,248,241
1,890 5.750%, 9/01/29 - FSA Insured (Alternative Minimum Tax) 9/07 at 101.00 AAA 1,916,914
750 Florida Housing Finance Agency, Housing Revenue Bonds, 12/06 at 102.00 AAA 766,283
Crossings at Indian Run Apartments, Series 1996V,
6.100%, 12/01/26 - AMBAC Insured (Alternative Minimum Tax)
1,400 Florida Housing Finance Agency, Housing Revenue Bonds, 4/07 at 102.00 AAA 1,437,772
Riverfront Apartments, Series 1997A, 6.250%, 4/01/37 -
AMBAC Insured (Alternative Minimum Tax)
1,000 Florida Housing Finance Agency, Housing Revenue Bonds, 11/06 at 102.00 AAA 1,015,870
Turtle Creek Apartments, Series 1996C-1, 6.100%, 5/01/16 -
AMBAC Insured (Alternative Minimum Tax)
2,060 Florida Housing Finance Corporation, GNMA Collateralized 12/10 at 102.00 Aaa 2,143,739
Housing Revenue Bonds, Cobblestone Apartments,
Series 2000K-1, 6.000%, 12/01/33 (Alternative Minimum Tax)
2,485 Florida Housing Finance Corporation, GNMA Collateralized 9/10 at 102.00 AAA 2,573,988
Housing Revenue Bonds, Raintree Apartments, Series 2000J-1,
5.950%, 3/01/35 (Alternative Minimum Tax)
Florida Housing Finance Corporation, Housing Revenue Bonds,
Augustine Club Apartments, Series 2000D-1:
1,500 5.500%, 10/01/20 - MBIA Insured 10/10 at 102.00 Aaa 1,563,840
4,750 5.750%, 10/01/30 - MBIA Insured 10/10 at 102.00 Aaa 4,922,093
3,490 Jacksonville, Florida, GNMA Collateralized Housing Revenue 9/06 at 100.00 AAA 3,492,548
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 1,470,728
Multifamily Mortgage Revenue Bonds, Country Club Villas II
Project, Series 2001-1A, 5.750%, 7/01/27 - FSA Insured
(Alternative Minimum Tax)
29
Nuveen Insured Florida Premium Income Municipal Fund (NFL) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 1,065 Palm Beach County Housing Finance Authority, Florida, 7/12 at 100.00 AAA $ 1,077,876
Multifamily Housing Revenue Bonds, Westlake Apartments
Phase II, Series 2002, 5.150%, 7/01/22 - FSA Insured
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
28,720 Total Housing/Multifamily 29,388,186
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.9% (0.7% OF TOTAL INVESTMENTS)
70 Broward County Housing Finance Authority, Florida, Single 4/09 at 101.00 Aaa 70,624
Family Mortgage Revenue Refunding Bonds, Series 1999B,
5.250%, 4/01/31 - MBIA Insured (Alternative Minimum Tax)
835 Escambia County Housing Finance Authority, Florida, 4/08 at 102.00 Aaa 840,160
Multi-County Single Family Mortgage Revenue Bonds,
Series 1999, 5.200%, 4/01/32 - MBIA Insured
(Alternative Minimum Tax)
4,530 Florida Housing Finance Corporation, Homeowner Mortgage 1/10 at 24.65 AAA 893,452
Revenue Bonds, Series 2000-4 , 0.000%, 7/01/30 -
FSA Insured (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
5,435 Total Housing/Single Family 1,804,236
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 3.9% (2.6% OF TOTAL INVESTMENTS)
4,940 Florida State Board of Education, Full Faith and Credit, 6/11 at 101.00 AAA 5,058,758
Public Education Capital Outlay Bonds, Series 2001C,
5.125%, 6/01/29 - FGIC Insured
1,895 Reedy Creek Improvement District, Orange and Osceola 6/15 at 100.00 AAA 1,946,392
Counties, Florida, General Obligation Bonds, Series 2005B,
5.000%, 6/01/25 - AMBAC Insured
1,390 Venice, Florida, General Obligation Bonds, Series 2004, 2/14 at 100.00 AAA 1,427,447
5.000%, 2/01/24 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
8,225 Total Tax Obligation/General 8,432,597
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 57.9% (38.8% OF TOTAL INVESTMENTS)
3,820 Broward County School Board, Florida, Certificates of 7/13 at 100.00 AAA 4,036,250
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 1,546,425
Series 2005, 5.000%, 10/01/23 - MBIA Insured
3,000 Collier County, Florida, Gas Tax Revenue Bonds, Series 2005, 6/15 at 100.00 AAA 3,096,840
5.000%, 6/01/22 - AMBAC Insured
1,555 DeSoto County, Florida, Capital Improvement Revenue Bonds, 4/12 at 101.00 AAA 1,641,987
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 1,031,540
1,000 5.125%, 8/01/31 - MBIA Insured 8/12 at 101.00 Aaa 1,027,140
2,500 Escambia County School Board, Florida, Certificates 2/15 at 100.00 AAA 2,571,075
of Participation, Series 2004, 5.000%, 2/01/22 - MBIA Insured
2,500 Flagler County School Board, Florida, Certificates of 8/15 at 100.00 AAA 2,539,125
Participation, Master Lease Revenue Program, Series 2005A,
5.000%, 8/01/30 - FSA Insured
1,435 Florida Department of Environmental Protection, Florida 7/13 at 101.00 AAA 1,495,012
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 3,522,583
3,345 5.375%, 11/01/30 - MBIA Insured 11/10 at 101.00 AAA 3,493,551
1,000 Florida Municipal Loan Council, Revenue Bonds, Series 2001A, 11/11 at 101.00 AAA 1,056,230
5.250%, 11/01/18 - MBIA Insured
2,230 Florida Ports Financing Commission, Revenue Bonds, 10/09 at 101.00 AAA 2,331,420
State Transportation Trust Fund - Intermodal Program,
Series 1999, 5.500%, 10/01/23 - FGIC Insured
(Alternative Minimum Tax)
5,200 Gulf Breeze, Florida, Local Government Loan Program, 12/11 at 101.00 AAA 5,357,508
Remarketed 6-1-2001, Series 1985E, 4.750%, 12/01/20
(Mandatory put 12/01/11) - FGIC Insured
1,080 Gulf Breeze, Florida, Local Government Loan Program, 12/06 at 101.00 AAA 1,099,483
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 1,038,401
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 1,588,560
Remarketed 7-3-2000, Series 1985E, 5.750%, 12/01/20
(Mandatory put 12/01/19) - FGIC Insured
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 6,000 Hillsborough County School Board, Florida, Certificates 7/13 at 100.00 AAA $ 6,097,380
of Participation, Series 2003, 5.000%, 7/01/29 -
MBIA Insured
2,000 Hillsborough County, Florida, Community Investment Tax 11/13 at 101.00 AAA 2,062,440
Revenue Bonds, Series 2004, 5.000%, 5/01/23 -
AMBAC Insured
1,000 Hillsborough County, Florida, Revenue Refunding Bonds, 10/15 at 100.00 AAA 1,027,900
Tampa Bay Arena, Series 2005, 5.000%, 10/01/25 -
FGIC Insured
2,595 Indian River County School Board, Florida, Certificates 7/15 at 100.00 AAA 2,671,786
of Participation, Series 2005, 5.000%, 7/01/22 -
MBIA Insured
1,000 Indian Trace Development District, Florida, Water 5/15 at 102.00 Aaa 1,029,900
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 1,584,060
Bonds, Series 2003, 5.250%, 10/01/20 - MBIA Insured
1,280 Lake County School Board, Florida, Certificates of Participation, 7/14 at 100.00 AAA 1,316,109
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 1,794,892
2,000 5.000%, 10/01/19 - AMBAC Insured 10/12 at 100.00 AAA 2,067,600
1,230 Lee County, Florida, Local Option Gas Tax Revenue Bonds, 10/14 at 100.00 Aaa 1,272,349
Series 2004, 5.000%, 10/01/20 - FGIC Insured
2,000 Miami-Dade County School Board, Florida, Certificates 11/16 at 100.00 AAA 2,039,520
of Participation, Series 2006B, 5.000%, 11/01/31 -
AMBAC Insured
18,000 Miami-Dade County, Florida, Subordinate Special Obligation 4/08 at 49.54 AAA 8,180,100
Bonds, Series 1997A, 0.000%, 10/01/21 - MBIA Insured
915 Opa-Locka, Florida, Capital Improvement Revenue Bonds, 7/06 at 100.00 AAA 917,288
Series 1994, 7.000%, 1/01/14 - FGIC Insured
1,000 Orange County School Board, Florida, Certificates 8/16 at 100.00 AAA 1,021,820
of Participation, Series 2006A, 5.000%, 8/01/30 -
FGIC Insured
4,275 Orange County School Board, Florida, Master Lease Program, 8/07 at 101.00 Aaa 4,378,370
Certificates of Participation, Series 1997A, 5.375%, 8/01/22 -
MBIA Insured
495 Orange County School Board, Florida, Master Lease Program, 8/07 at 101.00 Aaa 506,568
Certificates of Participation, Series 1997A, 5.375%, 8/01/22 -
MBIA Insured
3,180 Orange County, Florida, Sales Tax Revenue Bonds, 1/13 at 100.00 AAA 3,320,492
Series 2002B, 5.125%, 1/01/19 - FGIC Insured
2,500 Orange County, Florida, Tourist Development Tax Revenue 10/16 at 100.00 AAA 2,561,300
Bonds, Series 2006, 5.000%, 10/01/31 - XLCA 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 2,581,700
5,500 5.000%, 4/01/23 - MBIA Insured 4/14 at 100.00 Aaa 5,661,590
2,150 Palm Beach County School Board, Florida, Certificates 8/14 at 100.00 AAA 2,199,429
of Participation, Series 2004A, 5.000%, 8/01/24 -
FGIC Insured
6,500 Palm Beach County, Florida, Administrative Complex Revenue No Opt. Call AAA 6,763,640
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 2,570,975
4,000 5.375%, 6/01/10 - FGIC Insured No Opt. Call AAA 4,211,960
1,300 Plantation, Florida, Non-Ad Valorem Revenue Refunding 8/13 at 100.00 Aaa 1,341,574
and Improvement Bonds, Series 2003, 5.000%, 8/15/21 -
FSA Insured
4,260 St. Lucie County School Board, Florida, Certificates of 7/14 at 100.00 AAA 4,357,256
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 1,469,785
1,475 5.125%, 10/01/20 - FSA Insured 10/13 at 100.00 Aaa 1,539,295
1,555 5.125%, 10/01/21 - FSA Insured 10/13 at 100.00 Aaa 1,619,641
31
Nuveen Insured Florida Premium Income Municipal Fund (NFL) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,245 Tamarac, Florida, Sales Tax Revenue Bonds, Series 2002, 4/12 at 100.00 AAA $ 1,277,619
5.000%, 4/01/22 - FGIC Insured
4,275 Volusia County School Board, Florida, Certificates of 8/15 at 100.00 Aaa 4,383,072
Participation, Series 2005B, 5.000%, 8/01/24 - FSA Insured
2,000 Volusia County, Florida, Gas Tax Revenue Bonds, Series 2004, 10/14 at 100.00 AAA 2,068,860
5.000%, 10/01/21 - FSA Insured
1,785 Volusia County, Florida, Tax Revenue Bonds, 12/14 at 100.00 Aaa 1,837,443
Tourist Development, Series 2004, 5.000%, 12/01/24 -
FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
132,200 Total Tax Obligation/Limited 126,206,843
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 17.8% (11.9% OF TOTAL INVESTMENTS)
9,000 Broward County, Florida, Airport System Revenue Bonds, 10/11 at 101.00 AAA 9,223,200
Series 2001J-1, 5.250%, 10/01/26 - AMBAC Insured
(Alternative Minimum Tax)
2,150 Broward County, Florida, Airport System Revenue Bonds, 10/14 at 100.00 AAA 2,201,686
Series 2004L, 5.000%, 10/01/23 - AMBAC Insured
1,100 Dade County, Florida, Seaport Revenue Refunding Bonds, 10/06 at 101.00 AAA 1,123,507
Series 1995, 5.750%, 10/01/15 - MBIA Insured
2,000 Greater Orlando Aviation Authority, Florida, Airport 10/13 at 100.00 AAA 2,070,800
Facilities 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 2,049,000
Bonds, Series 1996, 5.625%, 11/01/18 - MBIA Insured
(Alternative Minimum Tax)
15,025 Lee County, Florida, Airport Revenue Bonds, Series 2000A, 10/10 at 101.00 AAA 16,177,868
6.000%, 10/01/32 - FSA Insured (Alternative Minimum Tax)
5,615 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/12 at 100.00 AAA 6,010,745
Miami International Airport, Series 2002, 5.750%, 10/01/19 -
FGIC Insured (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
36,890 Total Transportation 38,856,806
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 12.9% (8.6% OF TOTAL INVESTMENTS) (4)
5,325 Escambia County Housing Finance Authority, Florida, 6/09 at 101.00 AAA 5,645,991
Dormitory Revenue Bonds, University of West Florida
Foundation Inc., Series 1999, 5.750%, 6/01/31
(Pre-refunded 6/01/09) - MBIA Insured
Florida Housing Finance Agency, Housing Revenue Bonds,
Sterling Palms Apartments, Series 1996D-1:
885 6.300%, 12/01/16 (Pre-refunded 11/30/06) - 11/06 at 102.00 AAA 909,815
AMBAC Insured (Alternative Minimum Tax)
1,500 6.400%, 12/01/26 (Pre-refunded 11/30/06) - 11/06 at 102.00 AAA 1,542,675
AMBAC Insured (Alternative Minimum Tax)
10,000 Port St. Lucie, Florida, Utility System Revenue Bonds, 9/11 at 34.97 AAA 2,834,200
Series 2001, 0.000%, 9/01/29 (Pre-refunded 9/01/11) -
MBIA Insured
7,855 Seminole County, Florida, Water and Sewer Revenue Refunding No Opt. Call AAA 8,958,392
and Improvement Bonds, Series 1992, 6.000%, 10/01/19 -
MBIA Insured (ETM)
St. Lucie County, Florida, Utility System Revenue Refunding
Bonds, Series 1993:
5,000 5.500%, 10/01/15 - FGIC Insured (ETM) No Opt. Call AAA 5,380,150
1,200 5.500%, 10/01/21 - FGIC Insured (ETM) No Opt. Call AAA 1,315,284
1,500 Tampa, Florida, Healthcare System Revenue Bonds, 12/06 at 100.00 AAA 1,505,235
Allegany Health System - St. Joseph's Hospital, Series 1993,
5.125%, 12/01/23 - MBIA Insured (ETM)
- ------------------------------------------------------------------------------------------------------------------------------------
33,265 Total U.S. Guaranteed 28,091,742
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.4% (3.6% OF TOTAL INVESTMENTS)
8,000 Palm Beach County Solid Waste Authority, Florida, Revenue No Opt. Call AAA 5,570,160
Bonds, Series 2002B, 0.000%, 10/01/14 - AMBAC Insured
3,525 Palm Beach County Solid Waste Authority, Florida, Revenue No Opt. Call AAA 3,736,112
Refunding Bonds, Series 1997A, 6.000%, 10/01/09 -
AMBAC Insured
2,500 Tallahassee, Florida, Energy System Revenue Bonds, 10/15 at 100.00 AAA 2,554,625
Series 2005, 5.000%, 10/01/29 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
14,025 Total Utilities 11,860,897
- ------------------------------------------------------------------------------------------------------------------------------------
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 30.0% (20.1% OF TOTAL INVESTMENTS)
$ 1,250 Bay County, Florida, Water System Revenue Bonds, Series 2005, 9/15 at 100.00 Aaa $ 1,289,350
5.000%, 9/01/24 - AMBAC Insured
Broward County, Florida, Water and Sewer Utility Revenue
Bonds, Series 2003:
5,000 5.000%, 10/01/21 - MBIA Insured 10/13 at 100.00 AAA 5,162,300
4,500 5.000%, 10/01/24 - MBIA Insured 10/13 at 100.00 AAA 4,626,405
1,200 Callaway-Bay County, Florida, Wastewater System Revenue 9/14 at 100.00 Aaa 1,233,540
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 966,165
475 5.250%, 10/01/18 - AMBAC Insured 10/13 at 100.00 AAA 503,495
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 1,318,850
1,095 5.000%, 10/01/23 - MBIA Insured 10/13 at 100.00 AAA 1,127,116
1,225 5.000%, 10/01/24 - MBIA Insured 10/13 at 100.00 AAA 1,259,410
3,945 Florida Governmental Utility Authority, Utility System Revenue 10/13 at 100.00 AAA 4,060,707
Bonds, Citrus Project, Series 2003, 5.000%, 10/01/23 -
AMBAC Insured
1,000 Florida Governmental Utility Authority, Utility System Revenue 7/09 at 101.00 Aaa 1,012,570
Bonds, Golden Gate Project, Series 1999, 5.000%, 7/01/29 -
AMBAC Insured
8,000 Indian River County, Florida, Water and Sewer Revenue Bonds, 9/08 at 102.00 AAA 8,321,040
Series 1993A, 5.250%, 9/01/24 - FGIC Insured
1,000 JEA, Florida, Water and Sewerage System Revenue Bonds, 4/07 at 100.00 AAA 1,009,470
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 2,636,680
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 1,541,235
Series 2005, 5.000%, 10/01/24 - MBIA Insured
1,450 Jupiter, Florida, Water Revenue Bonds, Series 2003, 10/13 at 100.00 AAA 1,494,341
5.000%, 10/01/22 - AMBAC Insured
2,000 Manatee County, Florida, Public Utilities Revenue Bonds, 10/13 at 100.00 Aaa 2,087,180
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 1,433,322
1,000 5.250%, 10/01/18 - MBIA Insured 10/13 at 100.00 AAA 1,059,990
1,750 Palm Bay, Florida, Utility System Revenue Bonds, Palm Bay 10/13 at 100.00 AAA 1,812,825
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 1,059,350
500 5.250%, 10/01/20 - MBIA Insured 10/13 at 100.00 AAA 528,020
500 5.250%, 10/01/21 - MBIA Insured 10/13 at 100.00 AAA 530,315
1,170 Polk County, Florida, Utility System Revenue Bonds, 10/14 at 100.00 AAA 1,203,778
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 1,259,056
1,980 5.250%, 5/01/17 - MBIA Insured 5/12 at 100.00 AAA 2,088,068
2,330 Port St. Lucie, Florida, Utility System Revenue Bonds, 9/13 at 100.00 AAA 2,404,886
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 1,034,150
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 1,437,751
770 5.250%, 1/01/18 - FGIC Insured 1/13 at 100.00 AAA 814,021
500 5.250%, 1/01/20 - FGIC Insured 1/13 at 100.00 AAA 526,960
3,530 Seminole County, Florida, Water and Sewer Revenue Refunding No Opt. Call AAA 3,987,523
and Improvement Bonds, Series 1992, 6.000%, 10/01/19 -
MBIA Insured
33
Nuveen Insured Florida Premium Income Municipal Fund (NFL) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,300 Sunrise, Florida, Utility System Revenue Refunding Bonds, 10/06 at 102.00 AAA $ 1,331,733
Series 1996, 5.800%, 10/01/11 - AMBAC Insured
2,000 Village Center Community Development District, Florida, 10/13 at 101.00 AAA 2,104,980
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 1,126,895
5.000%, 10/01/31 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
62,640 Total Water and Sewer 65,393,477
- ------------------------------------------------------------------------------------------------------------------------------------
$ 336,135 Total Investments (cost $313,089,522) - 149.4% 325,451,705
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 3,452,047
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.9)% (111,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 217,903,752
====================================================================================================================
All of the bonds in the Portfolio of Investments 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.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
34
Nuveen Insured Florida Tax-Free Advantage Municipal Fund (NWF)
Portfolio of
INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.0% (10.0% OF TOTAL INVESTMENTS)
$ 2,240 FSU Financial Assistance Inc., Florida, General Revenue Bonds, No Opt. Call AAA $ 2,362,954
Educational and Athletic Facilities Improvements,
Series 2004, 5.000%, 10/01/14 - AMBAC Insured
1,985 North Miami, Florida, Educational Facilities Revenue Refunding 4/13 at 100.00 AAA 2,040,362
Bonds, Johnson and Wales University, Series 2003A,
5.000%, 4/01/19 - XLCA Insured
1,500 Volusia County Educational Facilities Authority, Florida, Revenue 10/15 at 100.00 AA 1,509,315
Bonds, Embry-Riddle Aeronautical University, Series 2005,
5.000%, 10/15/35 - RAAI Insured
Volusia County Educational Facilities Authority, Florida, Revenue
Refunding Bonds, Embry-Riddle Aeronautical University,
Series 2003:
1,000 5.200%, 10/15/26 - RAAI Insured 10/13 at 100.00 AA 1,025,960
1,250 5.200%, 10/15/33 - RAAI Insured 10/13 at 100.00 AA 1,276,425
- ------------------------------------------------------------------------------------------------------------------------------------
7,975 Total Education and Civic Organizations 8,215,016
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 12.5% (8.3% OF TOTAL INVESTMENTS)
1,000 Halifax Hospital Medical Center, Florida, Revenue Bonds, 6/16 at 100.00 N/R 1,015,020
Series 2006, 5.250%, 6/01/26
4,000 Highlands County Health Facilities Authority, Florida, Hospital 11/13 at 100.00 A+ 4,273,119
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2003D, 5.875%, 11/15/29
1,500 South Miami Health Facilities Authority, Florida, Hospital 2/13 at 100.00 AA- 1,530,420
Revenue Bonds, Baptist Health Systems of South Florida,
Series 2003, 5.200%, 11/15/28
- ------------------------------------------------------------------------------------------------------------------------------------
6,500 Total Health Care 6,818,559
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.6% (1.1% OF TOTAL INVESTMENTS)
795 Florida Housing Finance Agency, GNMA Collateralized Home No Opt. Call AAA 836,046
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 2,797,815
Texas, General Obligation Bonds, Series 2003,
5.375%, 2/15/26 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 69.9% (46.5% OF TOTAL INVESTMENTS)
400 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AAA 412,380
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 1,061,720
Series 2002, 5.250%, 10/01/17 - AMBAC Insured
1,525 Fernandina Beach, Florida, Utility Acquisition and Improvement 9/13 at 100.00 AAA 1,569,301
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 3,052,890
5.000%, 12/01/28 - MBIA Insured
1,500 Hillsborough County School Board, Florida, Certificates of 7/13 at 100.00 AAA 1,524,345
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 2,419,684
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 2,336,551
5.000%, 10/01/20 - AMBAC Insured
1,330 Mira Lago West Community Development District, Florida, 5/15 at 101.00 N/R 1,306,605
Capital Improvement Revenue Bonds, Series 2005,
5.375%, 5/01/36
2,000 Orange County, Florida, Sales Tax Revenue Bonds, 1/13 at 100.00 AAA 2,096,320
Series 2002A, 5.125%, 1/01/17 - FGIC Insured
1,500 Orange County, Florida, Sales Tax Revenue Bonds, 1/13 at 100.00 AAA 1,537,050
Series 2002B, 5.125%, 1/01/32 - FGIC Insured
3,370 Osceola County School Board, Florida, Certificates 6/12 at 101.00 Aaa 3,503,048
of Participation, Series 2002A, 5.125%, 6/01/20 -
AMBAC Insured
35
Nuveen Insured Florida Tax-Free Advantage Municipal Fund (NWF) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 3,335 Palm Bay, Florida, Local Optional Gas Tax Revenue Bonds, 10/14 at 100.00 AAA $ 3,538,635
Series 2004, 5.250%, 10/01/20 - MBIA Insured
3,670 Palm Beach County School Board, Florida, Certificates of 8/12 at 100.00 AAA 3,718,811
Participation, Series 2002D, 5.000%, 8/01/28 - FSA Insured
2,000 Palm Beach Gardens, Florida, Special Obligation Revenue 2/13 at 100.00 AAA 2,068,280
Bonds, Series 2004, 5.000%, 5/01/20 - AMBAC Insured
2,115 Port St. Lucie, Florida, Sales Tax Revenue Bonds, Series 2003, 9/13 at 100.00 AAA 2,176,441
5.000%, 9/01/23 - MBIA Insured
1,730 St. John's County, Florida, Sales Tax Revenue Bonds, 10/14 at 100.00 AAA 1,775,153
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 4,091,320
Participation, Master Lease Program, Series 2004A,
5.000%, 7/01/24 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
37,010 Total Tax Obligation/Limited 38,188,534
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.0% (7.3% OF TOTAL INVESTMENTS)
2,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 2,034,600
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 2,179,517
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 1,787,159
Series 2004B, 5.000%, 10/01/22 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
5,835 Total Transportation 6,001,276
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 9.8% (6.5% OF TOTAL INVESTMENTS) (4)
1,950 Palm Beach County School Board, Florida, Certificates of 8/12 at 100.00 AAA 2,074,176
Participation, Series 2002D, 5.250%, 8/01/20 (Pre-refunded
8/01/12) - FSA Insured
3,000 Pinellas County Health Facilities Authority, Florida, Revenue 5/13 at 100.00 A1 (4) 3,291,900
Bonds, Baycare Health System, Series 2003,
5.750%, 11/15/27 (Pre-refunded 5/15/13)
- ------------------------------------------------------------------------------------------------------------------------------------
4,950 Total U.S. Guaranteed 5,366,076
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.7% (3.1% OF TOTAL INVESTMENTS)
2,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 2,067,100
Series 2002II, 5.125%, 7/01/26 - FSA Insured
500 Tallahassee, Florida, Energy System Revenue Bonds, 10/15 at 100.00 AAA 510,925
Series 2005, 5.000%, 10/01/29 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
2,500 Total Utilities 2,578,025
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 20.8% (13.8% OF TOTAL INVESTMENTS)
1,000 Bay County, Florida, Water System Revenue Bonds, 9/15 at 100.00 Aaa 1,029,210
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 2,018,940
Series 2002A, 5.375%, 10/01/30 - MBIA Insured
3,000 Marco Island, Florida, Water Utility System Revenue Bonds, 10/13 at 100.00 AAA 3,064,740
Series 2003, 5.000%, 10/01/27 - MBIA Insured
2,000 Miami-Dade County, Florida, Water and Sewer System Revenue 10/09 at 101.00 AAA 2,026,100
Bonds, Series 1999A, 5.000%, 10/01/29 - FGIC Insured
500 North Port, Florida, Utility System Revenue Bonds, Series 2000, 10/10 at 101.00 Aaa 511,005
5.000%, 10/01/25 - FSA Insured
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,095 Palm Bay, Florida, Utility System Revenue Bonds, Series 2004, 10/14 at 100.00 AAA $ 1,161,861
5.250%, 10/01/20 - MBIA Insured
1,500 Port St. Lucie, Florida, Stormwater Utility System Revenue 5/12 at 100.00 AAA 1,537,560
Refunding Bonds, Series 2002, 5.000%, 5/01/23 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
11,095 Total Water and Sewer 11,349,416
- ------------------------------------------------------------------------------------------------------------------------------------
$ 79,320 Total Investments (cost $80,951,940) - 150.4% 82,150,763
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.7% 1,473,989
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.1)% (29,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 54,624,752
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT JUNE 30, 2006:
FIXED RATE FLOATING RATE
PAID FIXED RATE RECEIVED FLOATING RATE UNREALIZED
NOTIONAL BY THE FUND PAYMENT BY THE FUND PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT (ANNUALIZED) FREQUENCY BASED ON FREQUENCY DATE (5) DATE (DEPRECIATION)
- ------------------------------------------------------------------------------------------------------------------------------------
Goldman Sachs $1,800,000 4.013% Quarterly BMA Quarterly 9/14/06 9/14/26 $ 86,726
Merrill Lynch 3,000,000 4.021 Quarterly BMA Quarterly 9/21/06 9/21/26 141,996
- -----------------------------------------------------------------------------------------------------------------------------------
$228,722
====================================================================================================================================
BMA - The daily arithmetic average of the weekly BMA (Bond Market Association) Municipal Swap Index.
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 (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) 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) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
N/R Not rated.
See accompanying notes to financial statements.
37
Statement of
ASSETS AND LIABILITIES June 30, 2006
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY QUALITY INCOME PREMIUM INCOME TAX-FREE ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $357,623,352, $317,930,089,
$313,089,522 and $80,951,940, respectively) $371,891,428 $324,797,308 $325,451,705 $82,150,763
Cash -- 61,742 -- 181,385
Receivables:
Interest 4,823,630 4,881,015 4,209,359 1,091,443
Investments sold 260,000 -- 1,133,797 5,000
Unrealized appreciation on forward swaps -- -- -- 228,722
Other assets 31,254 35,227 32,741 5,231
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 377,006,312 329,775,292 330,827,602 83,662,544
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 772,523 -- 395,544 --
Payable for investments purchased -- -- 1,279,062 --
Accrued expenses:
Management fees 194,637 171,104 170,695 22,057
Other 79,074 64,924 65,174 9,429
Preferred share dividends payable 46,965 35,235 13,375 6,306
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,093,199 271,263 1,923,850 37,792
- ------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 132,000,000 117,000,000 111,000,000 29,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $243,913,113 $212,504,029 $217,903,752 $54,624,752
====================================================================================================================================
Common shares outstanding 16,587,502 14,302,595 14,393,396 3,882,373
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.70 $ 14.86 $ 15.14 $ 14.07
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 165,875 $ 143,026 $ 143,934 $ 38,824
Paid-in surplus 231,752,754 206,107,463 204,381,649 54,746,905
Undistributed (Over-distribution of)
net investment income (149,523) (292,353) 952,052 (84,550)
Accumulated net realized gain
(loss) from investments
and derivative transactions (2,124,069) (321,326) 63,934 (1,503,972)
Net unrealized appreciation
(depreciation) of investments
and derivative transactions 14,268,076 6,867,219 12,362,183 1,427,545
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $243,913,113 $212,504,029 $217,903,752 $54,624,752
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
38
Statement of
OPERATIONS Year Ended June 30, 2006
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY QUALITY INCOME PREMIUM INCOME TAX-FREE ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 18,590,597 $ 15,875,022 $ 16,457,213 $ 3,932,174
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,400,004 2,106,269 2,112,959 543,254
Preferred shares - auction fees 330,395 292,974 277,832 72,587
Preferred shares - dividend disbursing agent fees 20,000 30,000 20,000 10,000
Shareholders' servicing agent fees and expenses 25,968 19,689 18,474 1,084
Custodian's fees and expenses 94,947 84,372 90,431 29,616
Trustees' fees and expenses 7,986 6,917 7,198 1,951
Professional fees 23,475 20,934 21,112 12,624
Shareholders' reports - printing and mailing expenses 35,214 30,822 31,482 11,118
Stock exchange listing fees 10,049 10,176 10,172 330
Investor relations expense 39,284 34,569 34,752 10,822
Other expenses 24,078 24,483 22,246 12,008
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit
and expense reimbursement 3,011,400 2,661,205 2,646,658 705,394
Custodian fee credit (20,929) (12,060) (11,298) (7,904)
Expense reimbursement -- -- -- (271,873)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 2,990,471 2,649,145 2,635,360 425,617
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 15,600,126 13,225,877 13,821,853 3,506,557
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 501,480 859,292 938,575 (4,419)
Net realized gain (loss) from forward swaps -- -- -- 137,974
Change in net unrealized appreciation
(depreciation) of investments (14,732,365) (12,303,508) (13,926,918) (3,311,864)
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- -- 418,597
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (14,230,885) (11,444,216) (12,988,343) (2,759,712)
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (3,430,679) (3,035,981) (2,768,590) (728,881)
From accumulated net realized gains -- -- (281,644) --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from distributions
to Preferred shareholders (3,430,679) (3,035,981) (3,050,234) (728,881)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets applicable to Common
shares from operations $ (2,061,438) $ (1,254,320) $ (2,216,724) $ 17,964
====================================================================================================================================
See accompanying notes to financial statements.
39
Statement of
CHANGES IN NET ASSETS
FLORIDA INVESTMENT QUALITY (NQF) FLORIDA QUALITY INCOME (NUF)
--------------------------------- ---------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/06 6/30/05 6/30/06 6/30/05
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 15,600,126 $ 15,980,969 $ 13,225,877 $ 13,414,949
Net realized gain (loss) from investments 501,480 173,273 859,292 (1,167,083)
Net realized gain (loss) from forward swaps -- -- -- --
Change in net unrealized appreciation
(depreciation) of investments (14,732,365) 15,407,096 (12,303,508) 15,972,684
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- -- --
Distributions to Preferred shareholders:
From net investment income (3,430,679) (1,892,045) (3,035,981) (1,638,023)
From accumulated net realized gains -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common
shares from operations (2,061,438) 29,669,293 (1,254,320) 26,582,527
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (13,251,988) (16,116,436) (11,076,970) (13,650,082)
From accumulated net realized gains -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (13,251,988) (16,116,436) (11,076,970) (13,650,082)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions 155,702 472,933 42,933 201,370
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from capital share transactions 155,702 472,933 42,933 201,370
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares (15,157,724) 14,025,790 (12,288,357) 13,133,815
Net assets applicable to Common shares at the
beginning of year 259,070,837 245,045,047 224,792,386 211,658,571
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares
at the end of year $243,913,113 $259,070,837 $212,504,029 $224,792,386
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at
the end of year $ (149,523) $ 933,018 $ (292,353) $ 594,778
====================================================================================================================================
See accompanying notes to financial statements.
40
INSURED FLORIDA
INSURED FLORIDA PREMIUM INCOME (NFL) TAX-FREE ADVANTAGE (NWF)
------------------------------------ --------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/06 6/30/05 6/30/06 6/30/05
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 13,821,853 $ 14,245,500 $ 3,506,557 $ 3,512,261
Net realized gain (loss) from investments 938,575 1,839,639 (4,419) 140,285
Net realized gain (loss) from forward swaps -- -- 137,974 (927,595)
Change in net unrealized appreciation
(depreciation) of investments (13,926,918) 10,371,791 (3,311,864) 4,741,998
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- 418,597 (189,875)
Distributions to Preferred shareholders:
From net investment income (2,768,590) (1,580,948) (728,881) (393,068)
From accumulated net realized gains from investments (281,644) (80,509) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common
shares from operations (2,216,724) 24,795,473 17,964 6,884,006
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (11,855,911) (13,587,141) (2,694,347) (3,101,579)
From accumulated net realized gains (2,071,689) (1,576,378) -- --
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (13,927,600) (15,163,519) (2,694,347) (3,101,579)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions 268,943 181,928 5,148 9,910
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from capital share transactions 268,943 181,928 5,148 9,910
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (15,875,381) 9,813,882 (2,671,235) 3,792,337
Net assets applicable to Common shares
at the beginning of year 233,779,133 223,965,251 57,295,987 53,503,650
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares
at the end of year $217,903,752 $233,779,133 $54,624,752 $57,295,987
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at
the end of year $ 952,052 $ 1,759,000 $ (84,550) $ (167,879)
====================================================================================================================================
See accompanying notes to financial statements.
41
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 or certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
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 market price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair 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
forward swap contracts 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 municipal bond or a forward swap contract, each Fund may
use a market price or fair market value quote provided by a major broker/dealer
in such investments. If it is determined that the market price or fair market
value for an investment is 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 investments are valued at amortized cost, which
approximates market value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued or delayed delivery basis may have
extended settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the when
issued/delayed delivery purchase commitments. At June 30, 2006, 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.
Federal 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 monthly tax-exempt income dividends paid
during the fiscal year ended June 30, 2006, have been designated Exempt Interest
Dividends. Net realized capital gains and ordinary income distributions paid by
the Funds are subject to federal taxation.
42
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 paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
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 are authorized to 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 accruals for which would begin at a specified date in the
future (the "effective date"). The amount of the payment obligation is based on
the notional amount of the 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 swaps' 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 ordinarily 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 predetermined threshold
amount.
Insurance
Insured Florida Premium Income (NFL) invests only in municipal securities which
are either covered by insurance or are backed by an escrow or trust account
containing sufficient U.S. Government or U.S. Government agency securities, both
of which ensure the timely payment of principal and interest.
Insured Florida Tax-Free Advantage (NWF) invests at least 80% of its net assets
(including net assets 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) 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.
43
Notes to
FINANCIAL STATEMENTS (continued)
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
6/30/06 6/30/05 6/30/06 6/30/05
- ---------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions 9,854 30,216 2,715 12,874
=========================================================================================================
INSURED FLORIDA INSURED FLORIDA
PREMIUM INCOME (NFL) TAX-FREE ADVANTAGE (NWF)
------------------------ ------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/06 6/30/05 6/30/06 6/30/05
- ---------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions 16,602 11,023 339 670
=========================================================================================================
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the fiscal year ended June 30, 2006, were as
follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ---------------------------------------------------------------------------------------------------------
Purchases $23,485,984 $26,750,877 $28,920,858 $4,408,918
Sales and maturities 23,397,180 27,570,571 33,123,469 4,522,137
=========================================================================================================
44
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, timing differences
in recognizing taxable market discount and timing differences in recognizing
certain gains and losses on investment transactions.
At June 30, 2006, 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 $357,329,552 $317,925,192 $313,032,636 $81,034,160
===========================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at June 30, 2006, 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 $16,260,620 $ 7,918,407 $13,414,012 $1,470,698
Depreciation (1,698,744) (1,046,291) (994,943) (354,095)
- -----------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $14,561,876 $ 6,872,116 $12,419,069 $1,116,603
===========================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at June 30, 2006, 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 * $565,717 $538,929 $1,630,527 $144,993
Undistributed net ordinary income ** -- -- -- --
Undistributed net long-term capital gains -- -- 248,732 --
===========================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on June 1, 2006, paid on July 3, 2006.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the tax years ended June 30, 2006
and June 30, 2005, 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
2006 (NQF) (NUF) (NFL) (NWF)
- ---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $16,916,047 $14,335,500 $14,787,761 $3,426,176
Distributions from net ordinary income ** -- -- -- --
Distributions from net long-term capital gains *** -- -- 2,353,333 --
=========================================================================================================
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 --
=========================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Funds designated as a long-term capital gain dividend, pursuant to the
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the
earnings and profits of the Funds related to net capital gain to zero for
the tax year ended June 30, 2006.
45
Notes to
FINANCIAL STATEMENTS (continued)
At June 30, 2006, 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 $ -- $ -- $ 837,725
2013 2,124,069 321,326 97,429
2014 -- -- 236,626
- --------------------------------------------------------------------------------
Total $2,124,069 $321,326 $1,171,780
================================================================================
Insured Florida Tax-Free Advantage (NWF) elected to defer net realized losses
from investments incurred from November 1, 2005 through June 30, 2006
("post-October losses") in accordance with Federal income tax regulations. The
post-October losses of $249,969 were treated as having arisen on the first day
of the following fiscal year.
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc. ("Nuveen") 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.
The annual fund-level fee, payable monthly, for each Fund 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
================================================================================
46
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 stated in the table below. As
of June 30, 2006, the complex-level fee rate was .1887%.
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.
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 their 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 enables
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. NEW ACCOUNTING PRONOUNCEMENT
Financial Accounting Standards Board Interpretation No. 48
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 Accounting for Uncertainty in Income Taxes (FIN 48). FIN
48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied
to all open tax years as of the effective date. At this time, management is
evaluating the implications of FIN 48 and does not expect the adoption of FIN 48
will have a significant impact on the net assets or results of operations of the
Funds.
7. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on August 1, 2006, to shareholders of record
on July 15, 2006, as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- --------------------------------------------------------------------------------
Dividend per share $.0580 $.0560 $.0630 $.0575
================================================================================
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:
2006 $15.63 $ .94 $ (.86) $(.21) $ -- $ (.13) $ (.80) $ -- $ (.80)
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)
FLORIDA QUALITY
INCOME (NUF)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 15.72 .92 (.80) (.21) -- (.09) (.77) -- (.77)
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)
INSURED FLORIDA
PREMIUM INCOME (NFL)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 16.26 .96 (.91) (.19) (.02) (.16) (.82) (.14) (.96)
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)
INSURED FLORIDA
TAX-FREE ADVANTAGE (NWF)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 14.76 .90 (.71) (.19) -- -- (.69) -- (.69)
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:
2006 $ -- $14.70 $13.02 (11.13)% (.85)%
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
FLORIDA QUALITY
INCOME (NUF)
- -------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 -- 14.86 13.07 (9.64) (.55)
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
INSURED FLORIDA
PREMIUM INCOME (NFL)
- -------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 -- 15.14 13.74 (12.56) (.95)
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
INSURED FLORIDA
TAX-FREE ADVANTAGE (NWF)
- -------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 -- 14.07 13.37 (1.43) .03
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:
2006 $243,913 1.20% 6.21% 1.19% 6.22% 6%
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
FLORIDA QUALITY
INCOME (NUF)
- ------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 212,504 1.22 6.06 1.21 6.06 8
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
INSURED FLORIDA
PREMIUM INCOME (NFL)
- ------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 217,904 1.18 6.13 1.17 6.14 9
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
INSURED FLORIDA
TAX-FREE ADVANTAGE (NWF)
- ------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 54,625 1.26 5.77 .76 6.27 5
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:
2006 $132,000 $25,000 $71,196
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
FLORIDA QUALITY
INCOME (NUF)
- ----------------------------------------------------------------------
Year Ended 6/30:
2006 117,000 25,000 70,407
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
INSURED FLORIDA
PREMIUM INCOME (NFL)
- ----------------------------------------------------------------------
Year Ended 6/30:
2006 111,000 25,000 74,077
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
INSURED FLORIDA
TAX-FREE ADVANTAGE (NWF)
- ----------------------------------------------------------------------
Year Ended 6/30:
2006 29,000 25,000 72,090
2005 29,000 25,000 74,393
2004 29,000 25,000 71,124
2003(a) 29,000 25,000 74,330
======================================================================
* Annualized.
** Total 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 Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Fund is currently set
at nine. None of the board members who are not "interested" persons of the Funds
has ever been a director or employee of, or consultant to, Nuveen or its
affiliates. The names and business addresses of the board members and officers
of the Funds, their principal occupations and other affiliations during the past
five years, the number of portfolios each oversees and other directorships they
hold are set forth below.
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
- ------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS:
- ------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger(1) Chairman of 1994 Chairman (since 1996) and Director of Nuveen Investments, 167
3/28/49 the Board Inc., Nuveen Investments, LLC, Nuveen Advisory Corp. and
333 W. Wacker Drive and Board Nuveen Institutional Advisory Corp.(3); formerly, Director
Chicago, IL 60606 Member (1996-2006) of Institutional Capital Corporation; Chairman
and Director (since 1997) of Nuveen Asset Management;
Chairman and Director of Rittenhouse Asset Management,
Inc. (since 1999); Chairman of Nuveen Investments
Advisers Inc. (since 2002).
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
- ------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Lead Independent 1997 Private Investor and Management Consultant. 167
8/22/40 Board member
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Board member 1993 Retired (since 1989) as Senior Vice President of The 167
7/29/34 Northern Trust Company; Director (since 2002) Community
333 W. Wacker Drive Advisory Board for Highland Park and Highwood, United
Chicago, IL 60606 Way of the North Shore.
- ------------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private philanthropic 167
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 and 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, Tippie College of Business, University of Iowa (since 167
3/6/48 June 2006); formerly, Dean and Distinguished Professor of Finance,
333 W. Wacker Drive School of Business at the University of Connecticut (2003-2006);
Chicago, IL 60606 previously, Senior Vice President and Director of Research
at the Federal Reserve Bank of Chicago (1995-2003);
Director (since 1997), Credit Research Center at Georgetown
University; Director (since 2004) of Xerox Corporation; Director,
SS&C Technologies, Inc. (May 2005 - October 2005).
- ------------------------------------------------------------------------------------------------------------------------------------
David J. Kundert Board member 2005 Retired (since 2004) as Chairman, JPMorgan Fleming Asset 165
10/28/42 Management, President and CEO, Banc One Investment
333 W. Wacker Drive Advisors Corporation, and President, One Group Mutual
Chicago, IL 60606 Funds; prior thereto, Executive Vice President, Banc One
Corporation and Chairman and CEO, Banc One Investment
Management Group; Board of Regents, Luther College;
member of the Wisconsin Bar Association; member of Board
of Directors, Friends of Boerner Botanical Gardens.
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 FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
- ------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Board member 1997 Chairman of Miller-Valentine Partners Ltd., a real estate 167
9/24/44 investment company; formerly, Senior Partner and Chief
333 W. Wacker Drive Operating Officer (retired, 2004) of Miller-Valentine
Chicago, IL 60606 Group; formerly, Vice President, Miller-Valentine Realty;
Board Member, Chair of the Finance Committee and
member of the Audit Committee of Premier Health Partners,
the not-for-profit company of Miami Valley Hospital; Vice
President, Dayton Philharmonic Orchestra Association; Board
Member, Regional Leaders Forum, which promotes cooperation
on economic development issues; Director, Dayton Development
Coalition; formerly, Member, Community Advisory Board,
National City Bank, Dayton, Ohio and Business Advisory
Council, Cleveland Federal Reserve Bank.
- ------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Board member 1997 Executive Director, Gaylord and Dorothy Donnelley 167
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, 167
1/22/50 Northwestern University (since 1997); Director (since 2003),
333 W. Wacker Drive Chicago Board Options Exchange; Director (since 2003),
Chicago, IL 60606 National Mentor Holdings, a privately-held, national provider
of home and community-based services; Chairman (since
1997), Board of Directors, Rubicon, a pure captive insurance
company owned by Northwestern University; Director (since
1997), Evanston Chamber 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 167
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 (2002-2004), General Counsel (1998-2004)
and Assistant Secretary, formerly, Vice President of Nuveen
Advisory Corp. and Nuveen Institutional Advisory Corp.(3);
Managing Director (since 2002) and Assistant Secretary and
Associate General Counsel, formerly, Vice President (since
1997), 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. and Symphony Asset Management LLC (since 2003);
Assistant Secretary of Tradewinds NWQ Global Investors, LLC
(since 2006); 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 FUNDS (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------------------
Julia L. Antonatos Vice President 2004 Managing Director (since 2005), formerly Vice President 167
9/22/63 (since 2002); formerly, Assistant Vice President (since 2000)
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 167
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 and Treasurer of Nuveen Investments, LLC 167
11/28/67 and of Nuveen Investments, Inc. (since 1999); Vice President
333 W. Wacker Drive and Treasurer of Nuveen Asset Management (since 2002)
Chicago, IL 60606 and of Nuveen Investments Advisers Inc. (since 2002); Assistant
Treasurer of NWQ Investment Management Company, LLC.
(since 2002); Vice President and Treasurer of Nuveen
Rittenhouse Asset Management, Inc. and Symphony Asset
Management LLC (since 2003); Treasurer, Tradewinds NWQ
Global Investors, LLC (since 2006); formerly, Vice President and
Treasurer (1999-2004) of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3); Chartered Financial Analyst.
- ------------------------------------------------------------------------------------------------------------------------------------
John N. Desmond Vice President 2005 Vice President, Director of Investment Operations, Nuveen 167
8/24/61 Investments, LLC (since January 2005); formerly, Director,
333 W. Wacker Drive Business Manager, Deutsche Asset Management (2003-2004),
Chicago, IL 60606 Director, Business Development and Transformation, Deutsche
Trust Bank Japan (2002-2003); previously, Senior Vice
President, Head of Investment Operations and Systems,
Scudder Investments Japan, (2000-2002), Senior Vice
President, Head of Plan Administration and Participant
Services, Scudder Investments (1995-2002).
- ------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 1998 Vice President (since 2002), Assistant Secretary and 167
9/24/64 and Secretary Assistant General Counsel (since 1998)
formerly, Assistant 333 W. Wacker Drive Vice President
(since 1998) of Nuveen Investments, LLC; Chicago, IL 60606
Vice President (2002-2004) and Assistant Secretary
(1998-2004) formerly, Assistant Vice President of Nuveen
Advisory Corp. and Nuveen Institutional Advisory Corp.(3);
Vice President and Assistant Secretary (since 2005) of
Nuveen Asset Management.
- ------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Managing Director (since 2004), formerly, Vice President of 167
10/24/45 Nuveen Investments, LLC, Managing Director (2004) formerly,
333 W. Wacker Drive Vice President (1998-2004) of Nuveen Advisory Corp. and
Chicago, IL 60606 Nuveen Institutional Advisory Corp.(3); Managing Director
(since 2005) of Nuveen Asset Management.
- ------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002), formerly, Vice President of 167
3/2/64 Nuveen Investments; Managing Director (1997-2004) of
333 W. Wacker Drive Nuveen Advisory Corp. and Nuveen Institutional Advisory
Chicago, IL 60606 Corp.(3); Managing Director (since 2001) of Nuveen Asset
Management; Vice President (since 2002) of Nuveen
Investments Advisers Inc.; Chartered Financial Analyst.
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 FUNDS (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 167
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.
- ------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 167
3/22/63 LLC; Certified Public Accountant.
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President of Nuveen Investments, LLC (since 1999). 167
8/27/61
333 W. Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 167
7/27/51 and Assistant Counsel of Nuveen Investments, LLC; formerly, Vice President
333 W. Wacker Drive Secretary and 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.; Vice
President (since 2005) and Assistant Secretary (since 1997)
of Nuveen Asset Management; Vice President (since 2000),
Assistant Secretary and Assistant General Counsel (since
1998) of Rittenhouse Asset Management, Inc.; Vice President
and Assistant Secretary of Nuveen Investments Advisers Inc.
(since 2002); Assistant Secretary of NWQ Investment
Management Company, LLC (since 2002), Symphony Asset
Management LLC (since 2003) and Tradewinds NWQ Global
Investors, LLC (since 2006).
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, because he is an officer and board member
of the Adviser.
(2) Board members serve an indefinite term until his/her successor is elected.
The year first elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex.
(3) 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
The Board of Trustees is responsible for overseeing the performance of the
investment adviser to the Funds and determining whether to continue the advisory
arrangements. At a meeting held on May 23-25, 2006 (the "May Meeting"), the
Board of Trustees of the Funds, including the independent Trustees, unanimously
approved the continuance of the Investment Management Agreement between each
Fund and NAM (the "Fund Adviser").
THE APPROVAL PROCESS
During the course of the year, the Board received a wide variety of materials
relating to the services provided by the Fund Adviser and the performance of
each Fund. To assist the Board in its evaluation of the advisory contract with
the Fund Adviser at the May Meeting, the independent Trustees received extensive
materials in advance of their meeting which outlined, among other things:
o the nature, extent and quality of services provided by the Fund
Adviser;
o the organization and business operations of the Fund Adviser,
including the responsibilities of various departments and key
personnel;
o the Fund's past performance, the Fund's performance compared to funds
of similar investment objectives compiled by an independent third
party and to customized benchmarks;
o the profitability of the Fund Adviser and certain industry
profitability analyses for unaffiliated advisers;
o the expenses of the Fund Adviser in providing the various services;
o the advisory fees (gross and net management fees) and total expense
ratios of the Fund, including comparisons of such fees and expenses
with those of comparable, unaffiliated funds based on information and
data provided by Lipper (the "Peer Universe") as well as compared to a
subset of funds within the Peer Universe (the "Peer Group") to the
respective Fund (as applicable);
o the advisory fees the Fund Adviser assesses to other types of
investment products or clients;
o the soft dollar practices of the Fund Adviser, if any; and
o from independent legal counsel, a legal memorandum describing, among
other things, the duties of the Trustees under the Investment Company
Act of 1940 (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 May Meeting, the Fund Adviser 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 contracts. It is with this background that
the Trustees considered the advisory contract with the Fund Adviser. 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
the Fund Adviser; (b) the investment performance of the Fund and the Fund
Adviser; (c) the costs of the services to be provided and profitability of the
Fund Adviser and its affiliates; (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 reviewing the Fund Adviser, the Trustees considered the nature, extent and
quality of the Fund Adviser's services. The Trustees reviewed materials
outlining, among other things, the Fund Adviser's organization and business; the
types of services that the Fund Adviser or its affiliates provide and are
expected to provide to the Funds; the performance record of the applicable Fund
(as described in further detail below); and any initiatives and enhancements
Nuveen has taken for its municipal fund product line. In connection with their
continued service as Trustees, the Trustees also have a good understanding of
the Fund Adviser's organization, operations and personnel. In this regard, the
Trustees are familiar with and have evaluated the professional experience,
qualifications and credentials of the Fund Adviser's personnel. The Trustees
further reviewed materials describing, among other things, the teams and
54
personnel involved in the investment, research, risk-management and operational
processes involved in managing municipal funds and their respective functions.
Given the Trustees' experience with the Funds and Fund Adviser, the Trustees
recognized the demonstrated history of care and depth of experience of the
respective personnel in managing these Funds. In this regard, the Trustees
considered the continued quality of the Fund Adviser's investment process in
making portfolio management decisions as well as additional refinements and
improvements adopted to the portfolio management processes noted below. With
respect to the services provided to municipal funds, including the Funds, the
Trustees noted that the Fund Adviser continues to make refinements to its
portfolio management process including, among other things, the increased use of
derivatives to enhance management of risk, additional analytical software for
research staff and improved municipal pricing processes.
In addition to advisory services, the independent Trustees considered the
quality of any administrative or non-advisory services provided. The Fund
Adviser provides the Funds 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 connection with the review of the Investment Management
Agreement, the Trustees considered the extent and quality of these other
services which include, among other things, providing: product management (e.g.,
product positioning, performance benchmarking, risk management); fund
administration (e.g., daily net asset value pricing and reconciliation, tax
reporting, fulfilling regulatory filing requirements); oversight of third party
service providers; administration of board relations (e.g., organizing board
meetings and preparing related materials); compliance (e.g., monitoring
compliance with investment policies and guidelines and regulatory requirements);
and legal support (e.g., helping prepare and file registration statements,
amendments thereto, proxy statements and responding to regulatory requests
and/or inquiries). As the Funds operate in a highly regulated industry and given
the importance of compliance, the Trustees considered, in particular, the
additions of experienced personnel to the compliance teams and the enhancements
to technology and related systems to support the compliance activities for the
Funds (including a new reporting system for quarterly portfolio holdings).
In addition to the foregoing, the Trustees also noted the additional services
that the Fund Adviser or its affiliates provide to closed-end funds, including,
in particular, secondary market support activities. The Trustees recognized
Nuveen's continued commitment to supporting the secondary market for the common
shares of its closed-end funds through a variety of initiatives designed to
raise investor and analyst awareness and understanding of closed-end funds.
These efforts include providing advertising and other media relations programs,
continued contact with analysts, maintaining and enhancing its website for
closed-end funds, and targeted advisor communication programs. With respect to
funds that utilize leverage through the issuance of preferred shares, the
Trustees noted Nuveen's continued support for the preferred shares by
maintaining, among other things, an in-house preferred trading desk; designating
a product manager whose responsibilities include creating and disseminating
product information and managing relations in connection with the preferred
share auction; and maintaining systems necessary to test compliance with rating
agency requirements.
Based on their review, the Trustees found that, overall, the nature, extent and
quality of services provided (and expected to be provided) to the respective
Funds under the Investment Management Agreement were of a high level and were
satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUND AND FUND ADVISER
The Board considered the investment performance for each Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives identified by an independent third party (the
"Performance Peer Group") and portfolio level performance against customized
benchmarks, as described below. In evaluating the performance information, in
certain instances, the Trustees noted that the closest Performance Peer Group
for a Fund still may not adequately reflect such Fund's investment objectives,
strategies and portfolio duration, thereby limiting the usefulness of the
comparisons of such Fund's performance with that of the Performance Peer Group.
With respect to state specific municipal funds, the Trustees recognized that
certain state municipal funds do not have a corresponding state specific
Performance Peer Group in which case their performance is measured against a
more general municipal category for various states. The closed-end state
municipal funds that do not have corresponding state-specific Performance Peer
Groups are from Arizona, Connecticut, Georgia, Maryland, Massachusetts,
Missouri, North Carolina, Ohio, Texas, and Virginia. Further, due to a lack of
state-specific unleveraged categories, certain unleveraged state municipal funds
are included in their leveraged state category (such as the Nuveen California
Select Tax-Free Income Fund, Nuveen California Municipal Value Fund, Nuveen New
York Select Tax-Free Income Fund and Nuveen New York Municipal Value Fund).
In reviewing performance, the Trustees reviewed performance information
including, among other things, total return information compared with the Fund's
Performance Peer Group for the one-, three- and five-year periods (as
applicable) ending December 31, 2005. The Trustees also reviewed the Fund's
portfolio level performance (which does not reflect fund level fees and
expenses) compared to customized portfolio-level benchmarks for the one- and
three-year periods ending December 31, 2005 (as applicable). This analysis is
designed to assess the efficacy of investment decisions against appropriate
measures of risk and total return, within specific market segments. This
information supplements the Fund performance information provided to the Board
at each of their quarterly meetings. Based on their review, the Trustees
determined that the respective 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 of a Fund, the Board
reviewed, among other things, the Fund's advisory fees (net and gross
management fees) and total expense ratios (before and after expense
reimbursements and/or waivers) in absolute terms as well as comparisons to
the gross management fees (before waivers), net management fees (after
waivers) and total expense ratios (before and after waivers) of comparable
funds in the Peer Universe and the Peer Group. The Trustees reviewed data
regarding the construction of Peer Groups as well as the methods of
measurement for the fee and expense analysis and the performance analysis.
In certain cases, due to the small number of peers in the Peer Universe,
the Peer Universe and Peer Group
55
ANNUAL INVESTMENT MANAGEMENT
AGREEMENT APPROVAL PROCESS (continued)
may be the same. Further, the Trustees recognized that in certain cases the
closest Peer Universe and/or Peer Group did not adequately reflect the
Fund's investment objectives and strategies limiting the usefulness of
comparisons. In reviewing comparisons, the Trustees also considered the
size of the Peer Universe and/or Peer Group, the composition of the Peer
Group (including differences in the use of leverage and insurance) as well
as differing levels of fee waivers and/or expense reimbursements. In this
regard, the Trustees considered the fund-level and complex-wide breakpoint
schedules (described in further detail below) and any fee waivers and
reimbursements provided by Nuveen (applicable, in particular, for certain
funds launched since 1999). Based on their review of the fee and expense
information provided, the Trustees determined that each Fund's net total
expense ratio was within an acceptable range compared to peers.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Trustees further reviewed data comparing the advisory fees of the Fund
Adviser with fees the Fund Adviser charges to other clients, including
municipal managed accounts. In general, the fees charged for separate
accounts are somewhat lower than the fees assessed to the Funds. The
Trustees recognized that the differences in fees are attributable to a
variety of factors, including the differences in services provided, product
distribution, portfolio investment policies, investor profiles, account
sizes and regulatory requirements. The Trustees noted, in particular, that
the range of services provided to the Funds is more extensive than that
provided to managed separate accounts. As described in further detail
above, such additional services include, but are not limited to, providing:
product management, fund administration, oversight of third party service
providers, administration of board relations, and legal support. Funds
further operate in a highly regulated industry requiring extensive
compliance functions compared to the other investment products. In addition
to the costs of the additional services, administrative costs may also be
greater for funds as the average account size for separate accounts is
notably larger than the retail accounts of funds. Given the differences in
the product structures, particularly the extensive services provided to
closed-end municipal funds, the Trustees believe such facts justify the
different levels of fees.
3. PROFITABILITY OF FUND ADVISER
In conjunction with its review of fees, the Trustees also considered the
profitability of Nuveen Investments for advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers). The Trustees
reviewed data comparing Nuveen's profitability with other fund sponsors
prepared by three independent third party service providers as well as
comparisons of the revenues, expenses and profits margins of various
unaffiliated management firms with similar amounts of assets under
management prepared by Nuveen. The Trustees further reviewed the 2005
Annual Report for Nuveen Investments. In considering profitability, the
Trustees recognized the inherent limitations in determining profitability
as well as the difficulties in comparing the profitability of other
unaffiliated advisers. Profitability may be affected by numerous factors,
including the methodology for allocating expenses, the adviser's business
mix, the types of funds managed, the adviser's capital structure and cost
of capital. Further, individual fund or product line profitability of other
sponsors is generally not publicly available. Accordingly, the
profitability information that is publicly available from various
investment advisory or management firms may not be representative of the
industry.
Notwithstanding the foregoing, in reviewing profitability, the Trustees reviewed
Nuveen's methodology and assumptions for allocating expenses across product
lines to determine profitability. In this regard, the methods of allocation used
appeared reasonable. The Trustees also, to the extent available, compared
Nuveen's profitability margins (including pre- and post-marketing profit
margins) with the profitability of various unaffiliated management firms. The
Trustees noted that Nuveen's profitability is enhanced due to its efficient
internal business model. The Trustees also recognized that while a number of
factors affect profitability, Nuveen's profitability may change as fee waivers
and/or expense reimbursement commitments of Nuveen to various funds in the
Nuveen complex expire. To keep apprised of profitability and developments that
may affect profitability, the Trustees have requested profitability analysis be
provided periodically during the year. Based on their review, the Trustees were
satisfied that the Fund Adviser's level of profitability was reasonable in light
of the services provided.
In evaluating the reasonableness of the compensation, the Trustees also
considered any other revenues paid to the Fund Adviser as well as any indirect
benefits (such as soft dollar arrangements, if any) the Fund Adviser 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.
56
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Trustees recognized the potential
benefits resulting from the costs of a fund being spread over a larger asset
base as a fund grows. To help ensure the shareholders share in these benefits,
the Trustees have reviewed and considered the breakpoints in the advisory fee
schedules that reduce advisory fees as the applicable Fund's assets grow. In
addition to advisory fee breakpoints as assets in a respective Fund rise, after
lengthy discussions with management, the Board also approved a complex-wide fee
arrangement that was introduced on August 1, 2004. Pursuant to the complex-wide
fee arrangement, the fees of the funds in the Nuveen complex, including the
Funds, are reduced as the assets in the fund complex reach certain levels. 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 noted
that 2005 was the first full year to reflect the fee reductions from the complex
wide fee arrangement. 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 the Fund Adviser or its affiliates may receive as a result of its
relationship with each Fund. In this regard, the Trustees considered revenues
received by affiliates of the Fund Adviser for serving as agent at Nuveen's
preferred trading desk and for serving as a co-manager in the initial public
offering of new closed-end exchange traded funds.
In addition to the above, the Trustees considered whether the Fund Adviser
received any benefits from soft dollar arrangements. With respect to NAM, the
Trustees noted that 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; however, the Fund Adviser may from time
to time receive and have access to research generally provided to institutional
clients.
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 Fund Adviser's fees are reasonable in light of the
services provided to each Fund, and that the renewal of the Investment
Management Agreements should be approved.
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 EXCHANGE-TRADED CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Closed-End Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
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
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, 2006, 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 Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
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
Photo of: 2 women looking at a photo album.
Nuveen Investments:
SERVING Investors
For GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing more than $149 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 six distinct brands:
Nuveen, a leader in fixed-income investments; NWQ, a leader in value-style
equities; Rittenhouse, a leader in growth-style equities; Symphony, a leading
institutional manager of market-neutral alternative investment portfolios; Santa
Barbara, a leader in growth equities; and NWQ Tradewinds, a leader in Global
equities.
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.,
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EAN-A-0606D
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 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 (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4)
- ----------------------------------------------------------------------------------------------------------------------
June 30, 2006 $ 8,162 $ 0 $ 467 $ 2,900
- ----------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
- ----------------------------------------------------------------------------------------------------------------------
June 30, 2005 $ 7,667 $ 0 $ 584 $ 2,700
- ----------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
- ----------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for
the audit of the Fund's annual financial statements and services provided
in connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and
related services reasonably related to the performance of the audit or
review of financial statements and are not reported under "Audit Fees".
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
(4) "All Other Fees" are the aggregate fees billed for products and services
other than "Audit Fees", "Audit Related Fees", and "Tax Fees".
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 (1) SERVICE PROVIDERS
- ------------------------------------------------------------------------------------------------------------
June 30, 2006 $ 0 $ 2,200 $ 0
- ------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
- ------------------------------------------------------------------------------------------------------------
June 30, 2005 $ 0 $ 2,200 $ 0
- ------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
- ------------------------------------------------------------------------------------------------------------
(1) The amounts reported for the Fund under the column heading "Tax Fees"
represents amounts billed to the Adviser exclusively for the preparation
for the Fund's tax return, the cost of which is borne by the Adviser. In
the aggregate, for all Nuveen funds for which Ernst & Young LLP serves as
independent registered public accounting firm, these fees amounted to
$275,000 in 2006 and $282,575 in 2005.
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. 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 FEE OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
- --------------------------------------------------------------------------------------------------------------------------
June 30, 2006 $ 3,367 $ 2,200 $ 0 $ 5,567
June 30, 2005 $ 3,284 $ 2,200 $ 0 $ 5,484
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax
Fees" billed to Adviser in their respective amounts from the 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 (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.
The registrant invests its assets primarily in municipal bonds and cash
management securities. On rare occasions the registrant may acquire, directly or
through a special purpose vehicle, equity securities of a municipal bond issuer
whose bonds the registrant already owns when such bonds have deteriorated or are
expected shortly to deteriorate significantly in credit quality. The purpose of
acquiring equity securities generally will be to acquire control of the
municipal bond issuer and to seek to prevent the credit deterioration or
facilitate the liquidation or other workout of the distressed issuer's credit
problem. In the course of exercising control of a distressed municipal issuer,
NAM may pursue the registrant's interests in a variety of ways, which may entail
negotiating and executing consents, agreements and other arrangements, and
otherwise influencing the management of the issuer. NAM does not consider such
activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but
nevertheless provides reports to the registrant's Board of Trustees on its
control activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
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 registrant's Board of Trustees or its representative. A member of NAM's
legal department would oversee the administration of the voting, and ensure that
records were maintained in accordance with Rule 206(4)-6, reports were filed
with the SEC on Form N-PX, and the results provided to the registrant's Board of
Trustees and made available to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO MANAGER
The following individual has primary responsibility for the day-to-day
implementation of the registrant's investment strategies:
NAME FUND
Cathryn Steeves Nuveen Insured Florida Tax-Free Advantage Municipal Fund
Other Accounts Managed. In addition to managing the registrant, the portfolio
manager is also primarily responsible for the day-to-day portfolio management of
the following accounts:
NUMBER OF
PORTFOLIO MANAGER TYPE OF ACCOUNT MANAGED ACCOUNTS ASSETS*
- --------------------------------------------------------------------------------
Cathryn Steeves Registered Investment Company 67 $13.27 billion
Other Pooled Investment Vehicles 0 $0
Other Accounts 0 $0
* Assets are as of June 30, 2006. None of the assets in these accounts are
subject to an advisory fee based on performance.
Compensation. Each portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation, including
these three elements, to the market in order to create a compensation structure
that is competitive and consistent with similar financial services companies. As
discussed below, several factors are considered in determining each portfolio
manager's total compensation. In any year these factors may include, among
others, the effectiveness of the investment strategies recommended by the
portfolio manager's investment team, the investment performance of the accounts
managed by the portfolio manager, and the overall performance of Nuveen
Investments, Inc. (the parent company of NAM). Although investment performance
is a factor in determining the portfolio manager's compensation, it is not
necessarily a decisive factor. The portfolio manager's performance is evaluated
in part by comparing manager's performance against a specified investment
benchmark. This fund-specific benchmark is a customized subset (limited to bonds
in each Fund's specific state and with certain maturity parameters) of the
S&P/Investortools Municipal Bond index, an index comprised of bonds held by
managed municipal bond fund customers of Standard & Poor's Securities Pricing,
Inc. that are priced daily and whose fund holdings aggregate at least $2
million. As of August 30, 2006, the S&P/Investortools Municipal Bond index was
comprised of 47,346 securities with an aggregate current market value of $879
billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
the NAM's investment team, the performance of the accounts for which he/she
serves as portfolio manager relative to any benchmarks established for those
accounts, his/her effectiveness in communicating investment performance to
stockholders and their representatives, and his/her contribution to the NAM
investment process and to the execution of investment strategies. The cash bonus
component is also impacted by the overall performance of Nuveen Investments,
Inc. in achieving its business objectives.
Long-term incentive compensation. Each portfolio manager is eligible to receive
bonus compensation in the form of equity-based awards issued in securities
issued by Nuveen Investments, Inc. The amount of such compensation is dependent
upon the same factors articulated for cash bonus awards but also factors in his
long-term potential with the firm.
Material Conflicts of Interest. Each portfolio manager's simultaneous management
of the registrant and the other accounts noted above may present actual or
apparent conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the Registrant and the other account. NAM,
however, believes that such potential conflicts are mitigated by the fact that
the NAM has adopted several policies that address potential conflicts of
interest, including best execution and trade allocation policies that are
designed to ensure (1) that portfolio management is seeking the best price for
portfolio securities under the circumstances, (2) fair and equitable allocation
of investment opportunities among accounts over time and (3) compliance with
applicable regulatory requirements. All accounts are to be treated in a
non-preferential manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager. In addition,
NAM has adopted a Code of Conduct that sets forth policies regarding conflicts
of interest.
Beneficial Ownership of Securities. As of the June 30, 2006, the portfolio
manager beneficially owned the following dollar range of equity securities
issued by the Registrant and other Nuveen Funds managed by NAM's municipal
investment team.
- -------------------------------------------------------------------------------------------------------------------------
DOLLAR
RANGE OF
DOLLAR EQUITY
RANGE OF SECURITIES
EQUITY BENEFICIALLY
SECURITIES OWNED IN
BENEFICIALLY THE
OWNED IN REMAINDER
FUND OF NUVEEN
FUNDS
MANAGED BY
NAM'S
MUNICIPAL
INVESTMENT
NAME OF PORTFOLIO MANAGER FUND TEAM
- -------------------------------------------------------------------------------------------------------------------------
Cathryn Steeves Nuveen Insured Florida Tax-Free Advantage Municipal Fund $0 $10,001-$50,000
- -------------------------------------------------------------------------------------------------------------------------
PORTFOLIO MANAGER BIO:
Cathryn Steeves, PhD is currently a portfolio manager for 68 state-specific
municipal bond funds. She joined Nuveen in 1996 and worked as a senior analyst
in the healthcare sector. Cathryn has an undergraduate degree from Wake Forest
University, an MA, MPhil and a PhD from Columbia University.
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.
During this reporting period, the registrant's Board of Trustees implemented a
change to the procedures by which shareholders may recommend nominees to the
registrant's board of trustees by amending the registrant's by-laws to include a
provision specifying the date by which shareholder nominations for election as
trustee at a subsequent meeting must be submitted to the registrant.
Shareholders must deliver or mail notice to the registrant not less than
forty-five days nor more than sixty days prior to the first anniversary date of
the date on which the registrant first mailed its proxy materials for the prior
year's annual meeting; provided, however, if and only if the annual meeting is
not scheduled to be held within a period that commences thirty days before the
first anniversary date of the annual meeting for the preceding year and ends
thirty days after such anniversary date (an annual meeting date outside such
period being referred to as an "Other Annual Meeting Date" hereafter), the
shareholder notice must be given no later than the close of business on the date
forty-five days prior to such Other Annual Meeting Date or the tenth business
day following the date such Other Annual Meeting Date is first publicly
announced or disclosed. The shareholder's notice must be in writing and set
forth the name, age, date of birth, business address, residence address and
nationality of the person(s) being nominated and the class or series, number of
all shares of the registrant owned of record or beneficially be each such
person(s), any other information regarding such person required by Item 401 of
Regulation S-K or Item 22 of Rule 14a-101 (Schedule 14A) under the Securities
Exchange Act of 1934, as amended, any other information regarding the person(s)
to be nominated that would be required to be disclosed in a proxy statement or
other filings required to be made in connection with solicitation of proxies for
election of trustees, and whether such shareholder believes any nominee is or
will be an "interested person" (as that term is defined in the Investment
Company Act of 1940, as amended) of the registrant or sufficient information to
enable the registrant to make that determination and the written and signed
consent of the person(s) to be nominated.
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
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: September 8, 2006
-------------------------------------------------------------------
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 8, 2006
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: September 8, 2006
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.