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 811-7120
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Nuveen Insured Florida Premium Income Municipal Fund
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: April 30
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Date of reporting period: October 31, 2007
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMI-ANNUAL REPORT | Nuveen Investments
October 31, 2007 | MUNICIPAL CLOSED-END FUNDS
NUVEEN FLORIDA
INVESTMENT QUALITY
MUNICIPAL FUND
NQF
NUVEEN FLORIDA
QUALITY INCOME
MUNICIPAL FUND
NUF
NUVEEN INSURED
[Photo of: Small child] FLORIDA PREMIUM
INCOME MUNICIPAL FUND
NFL
NUVEEN INSURED
FLORIDA TAX-FREE ADVANTAGE
MUNICIPAL FUND
NWF
| [LOGO]
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) | NUVEEN
| INVESTMENTS
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E-SIMPLE.
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If you receive your Nuveen Fund OR If you receive your Nuveen Fund
dividends and statements from your | dividends and statements directly
financial advisor or brokerage account. | from Nuveen.
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[LOGO]
NUVEEN
INVESTMENTS
Chairman's
LETTER TO SHAREHOLDERS
[Photo of: Timothy R. Schwertfeger]
| Timothy R. Schwertfeger | Chairman of the Board
Once again, I am pleased to report that over the six-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.
I also wanted to take this opportunity to report some important news
about Nuveen Investments. The firm recently was acquired by a group led by
Madison Dearborn Partners, LLC. While this affects the corporate structure of
Nuveen Investments, it has no impact on the investment objectives, portfolio
management strategies or dividend policy of your Fund.
With the recent volatility in the stock market, many have begun to wonder which
way the market is headed, and whether they need to adjust their holdings of
investments. No one knows what the future will bring, which is why we think a
well-balanced portfolio that is structured and carefully monitored with the help
of an investment professional is an important component in achieving your long
term financial goals. A well-diversified portfolio may actually help to reduce
your overall investment risk, and we believe that investments like your Nuveen
Investments Fund can be important building blocks in a portfolio crafted to
perform well through a variety of market conditions.
We also are pleased to be able to offer you a choice concerning how you receive
your shareholder reports and other Fund information. As an alternative to mailed
copies, you can 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
December 14, 2007
Portfolio Manager's COMMENTS
Nuveen Investments Municipal Closed-End Funds | NQF, NUF, NFL, NWF
PORTFOLIO MANAGER DANIEL CLOSE DISCUSSES KEY INVESTMENT STRATEGIES AND THE
SIX-MONTH PERFORMANCE OF THESE FOUR NUVEEN FLORIDA FUNDS. DAN, WHO JOINED NUVEEN
IN 2000, ASSUMED PORTFOLIO MANAGEMENT RESPONSIBILITY FOR THE FLORIDA FUNDS IN
MARCH 2007.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE FLORIDA FUNDS DURING THIS
REPORTING PERIOD?
Over the course of this reporting period, we saw the municipal yield curve
steepen as interest rates at the short end of the curve declined and longer
rates generally rose. In this environment, we continued to emphasize a
disciplined approach to duration(1) management and yield curve positioning.
In general, we continued to focus on relative value, looking for undervalued
sectors and credits with the potential to perform well over the long term. The
majority of our purchases were attractively-priced intermediate to longer-term
bonds (i.e., bonds in the 20-year to 30-year part of the yield curve). These
purchases helped to offset the shortening of the Funds' durations due to bond
calls and the natural tendency of bond durations to shorten as time passes.
In the current economic environment, many of our purchases focused on essential
services bonds (for example, bonds issued to fund roads, schools, and water and
sewer projects). All four of the Florida Funds added insured sales tax revenue
bonds issued by Flagler County, and NQF, NUF and NWF each purchased two
community development district bonds. In NFL, we purchased a tax-supported
offering from Orange County.
To help generate cash for purchases and move the Funds' durations closer to our
strategic target, we selectively sold holdings with shorter durations, including
short-dated pre-refunded credits. Selling these shorter duration bonds and
reinvesting further out on the yield curve also helped to improve the Funds'
overall call protection profile. As longer-term municipal bond interest rates
rose late in the period, we also found a variety of opportunities in NQF, NUF,
and NFL to sell 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 these Funds' current portfolio characteristics while
strengthening their future income streams.
As another part of our duration management strategy, we used inverse floating
rate securities,(2) a type of derivative financial instrument, in NQF, NUF and
NFL. The inverse
(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.
(2) An inverse floating rate security is a financial instrument designed to
pay long-term tax-exempt interest at a rate that varies inversely with a
short-term tax-exempt interest rate index. For the Nuveen Funds, the index
typically used is the Securities Industry and Financial Markets (SIFM)
Municipal Swap Index (previously referred to as the Bond Market
Association Index or BMA). Inverse floaters, including those inverse
floating rate securities in which the Funds invested during the reporting
period, are further defined within the "Notes to Financial Statements" and
"Glossary of Terms Used in This Report" sections of this shareholder
report.
Discussions of specific investments are for illustrative purposes only and are
not intended as recommendations of individual investments. The views expressed
in this commentary represent those of the portfolio manager as of the date of
this report and are subject to change at any time, based on market conditions
and other factors. The Funds disclaim any obligation to advise shareholders of
such changes.
4
floaters had the dual benefit of bringing the durations of these three Funds
closer to our preferred strategic target and enhancing their income-generation
capabilities. In addition, NQF, NFL and NWF used forward interest rate swaps,
another type of derivative financial instrument. The goal of this strategy was
to help us manage net asset value (NAV) volatility without having a negative
impact on the Funds' income streams or common share dividends over the short
term.
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 10/31/07
6-Month 1-Year 5-Year 10-Year
Florida Funds
NQF -0.49% 0.58% 5.13% 5.77%
NUF -0.30% 1.00% 5.34% 5.53%
Lehman Brothers
Municipal Bond Index(3) 1.30% 2.91% 4.46% 5.29%
Insured Florida Funds**
NFL 0.60% 1.86% 4.92% 5.77%
NWF 0.12% 1.55% NA NA
Lehman Brothers Insured
Municipal Bond Index(3) 1.33% 2.95% 4.64% 5.49%
Lipper Florida
Municipal Debt Funds
Average(4) -0.20% 1.31% 5.17% 5.35%
For the six months ended October 31, 2007, the cumulative returns on NAV for NQF
and NUF underperformed the return on the Lehman Brothers Municipal Bond Index,
and the returns of NFL and NWF lagged the return for the Lehman Brothers Insured
Municipal Bond Index. NFL and NWF exceeded the average return for the Funds'
Lipper Florida Municipal Debt Funds Average, while NQF and NUF trailed this
average.
One of the key factors in the six-month performance of these Funds relative to
those of the unleveraged Lehman Brothers Municipal Bond Index and Lehman
Brothers Insured Municipal Bond Index was the use of financial leverage. The
returns of all of these Funds were negatively impacted by their use of leverage.
Although leveraging provides opportunities for additional income and total
returns for common shareholders, it can also expose shareholders to additional
risk when market conditions are unfavorable. With the dramatic increases in
yields on longer municipal bonds, the impact of the valuation changes in these
bonds was magnified by the use of leverage in these four
* Annualized.
Six-month returns are cumulative; all other returns annualized.
** Insurance relates specifically to the payment of principal and interest on
the bonds in the portfolio and not to the value of the Fund's shares.
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.
(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 Average category is calculated
using the returns of all closed-end funds in this category for each period
as follows: 6 months, 16; 1 year, 16; 5 years, 13; and 10 years, 9. Fund
and Lipper returns assume reinvestment of dividends.
5
Funds. However, we firmly believe that the use of this strategy should work to
the benefit of the Funds over the long term. This is demonstrated by the
five-year and ten-year return performances--both absolute and relative to the
Lehman Brothers Municipal Bond Index and Lehman Brothers Insured Municipal Bond
Index--of NQF, NUF and NFL.
Other factors that influenced the Funds' returns included yield curve and
duration positioning, the use of derivatives in some Funds, credit exposure, and
sector allocations.
During this six-month period, bonds in the Lehman Brothers Municipal Bond Index
with maturities of less than eight years, especially those maturing in
approximately three to five years, benefited the most from changes in the
interest rate environment. As a result, these bonds generally outperformed
credits with longer maturities, while bonds having the longest maturities (22
years and longer) posted the worst returns for the period. For the most part,
the yield curve positioning of the Florida Funds was a net positive for
performance. Although these Funds were underexposed to the outperforming shorter
bond categories, this was offset to some degree by the Funds' heavier weightings
in the intermediate part of the curve, which performed relatively well, and
lower allocations to the underperforming long part of the curve.
Because they effectively increased exposure to longer maturity bonds during a
period when shorter maturities were in favor in the market, the inverse floaters
in place in NQF, NUF and NFL had a negative impact on the return performance of
these three Funds for the six-month period. At the same time, however, these
inverse floaters benefited the Funds by helping to support their income streams.
We believe that, over time, these derivative financial instruments will work to
the advantage of the Funds.
While yield curve and duration positioning played an important role in
performance, especially during the last part of this period, credit exposure was
also a dominant factor over these six months. As interest rates on longer
municipal bonds rose, lower credit quality bonds generally underperformed the
municipal market as a whole for the first time in several years. As of October
31, 2007, NQF and NUF had allocated approximately 8% and 7%, respectively, of
their portfolios to bonds rated BBB and non-rated credits. NWF, which can invest
up to 20% of its assets in uninsured investment-grade quality securities, had a
5% allocation to these lower-rated credits. While this lower-rated exposure had
a negative influence on the Funds' performances for this period, the relatively
smaller weightings in these credit quality sectors helped to limit the impact of
this exposure. At the same time, the Funds' weightings in bonds rated AAA and AA
were generally positive for performance. As a 100% insured Fund, NFL did not
hold any lower-quality credits, and the Fund's performance benefited from its
overall higher credit quality.
6
Sectors of the market that performed well included water and sewer,
transportation and education. Pre-refunded bonds, especially those that were
advance refunded(5) before longer municipal interest rates began to rise in
mid-2007, also performed well during this period. This was especially true in
NFL and NWF, which benefited from the price appreciation and enhanced credit
quality associated with several advance refundings in each Fund during this
period.
(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.
7
Dividend and Share Price
INFORMATION
As previously noted, all four of these Funds use leverage to potentially enhance
opportunities for additional income for common shareholders. Although the Funds'
use of this strategy continued to provide incremental income, the extent of this
benefit was reduced due to short-term interest rates that remained relatively
high during most of this period. This, in turn, kept the Funds' borrowing costs
high. The Funds' income streams were also impacted as the proceeds from older,
higher-yielding bonds that matured or were called were reinvested into bonds
currently available in the market, which generally offered lower yields during
much of this period. These factors resulted in one monthly dividend reduction in
NQF, NFL, and NWF over the six-month period ended October 31, 2007. The dividend
of NUF remained stable throughout this reporting period.
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 October 31, 2007, all of
the Funds in this report had negative UNII balances for financial statement
purposes and positive UNII balances, based upon our best estimate, for tax
purposes.
SHARE REPURCHASE AND SHARE PRICE INFORMATION
On July 10, 2007, the Board of Trustees of NQF, NUF, and NFL approved an open
market share repurchase program. This was part of a broad, ongoing effort
designed to support the market prices of the Funds' common shares. Repurchases
not only help to support the market price but, because such purchases are made
at a discount to NAV, they have the effect of augmenting NAV. Under the terms of
the program, each Fund may repurchase up to 10% of its outstanding common
shares. As of October 31, 2007, NQF, NUF, and NFL had repurchased 197,700,
131,400, and 160,200 common shares, respectively, representing 1% of each Fund's
total common shares outstanding.
As of October 31, 2007, the Funds' share prices were trading at discounts to
their NAVs as shown in the accompanying chart:
10/31/07 Six-Month
Discount Average Discount
NQF -11.26% -8.83%
NUF -11.56% -9.41%
NFL -10.74% -7.67%
NWF -8.98% -6.62%
8
NQF | Nuveen Florida
Performance | Investment Quality
OVERVIEW | Municipal Fund
as of October 31, 2007
Credit Quality (as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 81%
AA 6%
A 5%
BBB 5%
N/R 3%
2006-2007 Monthly Tax-Free Dividends Per Share
[BAR CHART]
$0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.05
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Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Share Price Performance -- Weekly Closing Price
[LINE CHART]
11/01/06
$13.67
$13.57
$13.89
$13.80
$13.83
$13.97
$13.95
$13.86
$13.72
$13.81
$13.81
$13.86
$13.93
$13.85
$14.01
$13.93
$13.96
$13.93
$14.09
$14.17
$14.09
$13.98
$14.02
$14.14
$13.97
$14.00
$14.02
$14.19
$14.13
$14.13
$13.94
$13.84
$13.53
$13.38
$13.34
$13.54
$13.50
$13.28
$13.25
$13.27
$13.34
$13.14
$12.95
$13.08
$13.45
$13.58
$13.39
$13.14
$13.36
$13.22
$13.00
$13.02
$13.03
$13.08
10/31/07
FUND SNAPSHOT
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Common Share Price $ 13.08
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Common Share Net Asset Value $ 14.74
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Premium/(Discount) to NAV -11.26%
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Market Yield 4.95%
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Taxable-Equivalent Yield(1) 6.88%
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Net Assets Applicable to Common Shares ($000) $241,547
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Average Effective Maturity on Securities (Years) 15.11
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Leverage-Adjusted Duration 8.99
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AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
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ON SHARE PRICE ON NAV
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6-Month (Cumulative) -4.92% -0.49%
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1-Year 0.95% 0.58%
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5-Year 3.24% 5.13%
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10-Year 3.76% 5.77%
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INDUSTRIES
(as a % of total investments)
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Tax Obligation/Limited 30.2%
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Transportation 24.0%
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U.S. Guaranteed 17.3%
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Water and Sewer 6.8%
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Health Care 6.6%
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Tax Obligation/General 5.3%
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Other 9.8%
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(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.
9
NUF | Nuveen Florida
Performance | Quality Income
OVERVIEW | Municipal Fund
as of October 31, 2007
FUND SNAPSHOT
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Common Share Price $ 13.23
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Common Share Net Asset Value $ 14.96
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Premium/(Discount) to NAV -11.56%
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Market Yield 4.99%
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Taxable-Equivalent Yield(1) 6.93%
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Net Assets Applicable to Common Shares ($000) $212,012
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Average Effective Maturity on Securities (Years) 15.07
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Leverage-Adjusted Duration 8.75
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AVERAGE ANNUAL TOTAL RETURN
(Inception 10/17/91)
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ON SHARE PRICE ON NAV
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6-Month (Cumulative) -3.44% -0.30%
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1-Year 1.15% 1.00%
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5-Year 2.89% 5.34%
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10-Year 4.09% 5.53%
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INDUSTRIES
(as a % of total investments)
- --------------------------------------------------------------------------------
Tax Obligation/Limited 27.6%
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Transportation 22.0%
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Health Care 9.3%
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U.S. Guaranteed 9.3%
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Education and Civic Organizations 7.3%
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Tax Obligation/General 5.5%
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Housing/Multifamily 5.4%
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Utilities 5.0%
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Other 8.6%
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Credit Quality (as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 79%
AA 8%
A 6%
BBB 4%
N/R 3%
2006-2007 Monthly Tax-Free Dividends Per Share
[BAR CHART]
$0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06
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Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Share Price Performance -- Weekly Closing Price
[LINE CHART]
11/01/06
$13.76
$13.67
$13.69
$13.77
$13.77
$13.89
$13.97
$13.86
$13.80
$13.84
$13.88
$13.89
$13.88
$13.77
$14.04
$14.03
$14.04
$13.95
$14.10
$14.16
$14.02
$14.05
$14.09
$14.11
$14.04
$14.00
$14.02
$14.22
$14.07
$14.13
$14.01
$13.92
$13.65
$13.43
$13.48
$13.68
$13.60
$13.41
$13.42
$13.40
$13.53
$13.25
$12.98
$13.15
$13.33
$13.57
$13.43
$13.36
$13.43
$13.30
$13.26
$13.35
$13.27
$13.23
10/31/07
(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.
10
NFL | Nuveen Insured
Performance | Florida Premium
OVERVIEW | Income Municipal Fund
as of October 31, 2007
Credit Quality (as a % of total investments)
[PIE CHART]
Insured 86%
U.S. Guaranteed 11%
GNMA Guaranteed 3%
2006-2007 Monthly Tax-Free Dividends Per Share(2)
[BAR CHART]
$0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06
- --------------------------------------------------------------------------------
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Share Price Performance -- Weekly Closing Price
[LINE CHART]
11/01/06
$14.93
$14.83
$14.99
$14.97
$15.01
$15.05
$15.04
$14.70
$14.56
$14.64
$14.75
$14.83
$14.91
$14.81
$15.02
$14.98
$15.08
$14.93
$14.89
$14.92
$14.82
$14.91
$14.93
$14.97
$14.80
$14.68
$14.66
$14.77
$14.71
$14.60
$14.46
$14.50
$14.29
$13.92
$13.76
$13.97
$14.01
$13.82
$13.72
$13.69
$13.84
$13.66
$13.46
$13.57
$13.68
$14.04
$14.08
$13.84
$13.80
$13.68
$13.56
$13.45
$13.59
$13.54
10/31/07
FUND SNAPSHOT
- --------------------------------------------------------------------------------
Common Share Price $ 13.54
- --------------------------------------------------------------------------------
Common Share Net Asset Value $ 15.17
- --------------------------------------------------------------------------------
Premium/(Discount) to NAV -10.74%
- --------------------------------------------------------------------------------
Market Yield 5.10%
- --------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.08%
- --------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $215,976
- --------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 14.79
- --------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.71
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/17/92)
- --------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------------------------------------
6-Month (Cumulative) -5.82% 0.60%
- --------------------------------------------------------------------------------
1-Year -4.15% 1.86%
- --------------------------------------------------------------------------------
5-Year 3.37% 4.92%
- --------------------------------------------------------------------------------
10-Year 5.46% 5.77%
- --------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
- --------------------------------------------------------------------------------
Tax Obligation/Limited 43.2%
- --------------------------------------------------------------------------------
Water and Sewer 16.2%
- --------------------------------------------------------------------------------
Transportation 10.7%
- --------------------------------------------------------------------------------
U.S. Guaranteed 10.6%
- --------------------------------------------------------------------------------
Housing/Multifamily 6.4%
- --------------------------------------------------------------------------------
Other 12.9%
- --------------------------------------------------------------------------------
(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.
(2) The Fund paid shareholders a capital gains distribution in December 2006
of $0.0209 per share.
11
NWF | Nuveen Insured Florida
Performance | Tax-Free Advantage
OVERVIEW | Municipal Fund
as of October 31, 2007
FUND SNAPSHOT
- --------------------------------------------------------------------------------
Common Share Price $ 12.97
- --------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.25
- --------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.98%
- --------------------------------------------------------------------------------
Market Yield 4.76%
- --------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 6.61%
- --------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 55,320
- --------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 14.43
- --------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.66
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/21/02)
- --------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------------------------------------
6-Month (Cumulative) -2.93% 0.12%
- --------------------------------------------------------------------------------
1-Year 2.58% 1.55%
- --------------------------------------------------------------------------------
Since Inception 2.30% 5.15%
- --------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
- --------------------------------------------------------------------------------
Tax Obligation/Limited 44.4%
- --------------------------------------------------------------------------------
U.S. Guaranteed 23.2%
- --------------------------------------------------------------------------------
Water and Sewer 11.3%
- --------------------------------------------------------------------------------
Education and Civic Organizations 9.8%
- --------------------------------------------------------------------------------
Transportation 7.3%
- --------------------------------------------------------------------------------
Other 4.0%
- --------------------------------------------------------------------------------
Credit Quality (as a % of total investments)
[PIE CHART]
Insured 71%
U.S. Guaranteed 23%
GNMA Guaranteed 1%
BBB (Uninsured) 3%
N/R (Uninsured) 2%
2006-2007 Monthly Tax-Free Dividends Per Share
[BAR CHART]
$0.05 $0.05 $0.05 $0.05 $0.05 $0.05 $0.05 $0.05 $0.05 $0.05 $0.05 $0.05
- --------------------------------------------------------------------------------
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Share Price Performance -- Weekly Closing Price
[LINE CHART]
11/01/06
$13.32
$13.31
$13.50
$13.43
$13.40
$13.48
$13.56
$13.45
$13.33
$13.36
$13.41
$13.35
$13.43
$13.36
$13.55
$13.49
$13.59
$13.51
$13.70
$13.80
$13.68
$13.63
$13.56
$13.63
$13.53
$13.65
$13.82
$13.77
$13.64
$13.78
$13.64
$13.74
$13.68
$13.22
$13.29
$13.45
$13.27
$13.39
$13.20
$13.49
$13.48
$13.20
$12.94
$12.93
$13.00
$13.22
$13.24
$12.93
$13.16
$12.85
$13.02
$12.92
$12.95
$12.97
10/31/07
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
12
NQF | Shareholder MEETING REPORT
NUF | The special meeting of shareholders was held in the offices of Nuveen
| Investments on October 12, 2007; the meeting for Nuveen Florida Quality
Income Municipal Fund (NUF) was subsequently adjourned to October 22, 2007
and additionally to November 8, 2007.
NQF NUF
- -------------------------------------------------------------------------------------------------------------
TO APPROVE A NEW INVESTMENT
MANAGEMENT AGREEMENT:
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
- -------------------------------------------------------------------------------------------------------------
For 8,354,045 -- 7,363,659 --
Against 659,547 -- 1,383,585 --
Abstain 220,518 -- 232,095 --
Broker Non-Votes 2,736,074 -- 1,921,948 --
- -------------------------------------------------------------------------------------------------------------
Total 11,970,184 -- 10,901,287 --
=============================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS
REACHED AS FOLLOWS:
William J. Schneider
For -- 4,188 -- 4,139
Withhold -- 26 -- 12
- -------------------------------------------------------------------------------------------------------------
Total -- 4,214 -- 4,151
=============================================================================================================
Timothy R. Schwertfeger
For -- 4,188 -- 4,139
Withhold -- 26 -- 12
- -------------------------------------------------------------------------------------------------------------
Total -- 4,214 -- 4,151
=============================================================================================================
Judith M. Stockdale
For 11,490,935 -- 9,936,250 --
Withhold 479,249 -- 965,037 --
- -------------------------------------------------------------------------------------------------------------
Total 11,970,184 -- 10,901,287 --
=============================================================================================================
Carole E. Stone
For 11,499,387 -- 9,929,488 --
Withhold 470,797 -- 971,799 --
- -------------------------------------------------------------------------------------------------------------
Total 11,970,184 -- 10,901,287 --
=============================================================================================================
TO RATIFY THE SELECTION OF ERNST & YOUNG LLP
AS THE INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM FOR THE CURRENT FISCAL YEAR:
For 11,772,515 -- 10,307,024 --
Against 84,306 -- 472,466 --
Abstain 113,363 -- 121,797 --
- -------------------------------------------------------------------------------------------------------------
Total 11,970,184 -- 10,901,287 --
=============================================================================================================
13
NFL | Shareholder MEETING REPORT (continued)
NWF |
NFL NWF
- -------------------------------------------------------------------------------------------------------------
TO APPROVE A NEW INVESTMENT
MANAGEMENT AGREEMENT:
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
- -------------------------------------------------------------------------------------------------------------
For 7,303,591 -- 1,992,758 --
Against 257,216 -- 180,167 --
Abstain 228,348 -- 57,458 --
Broker Non-Votes 2,500,136 -- 642,601 --
- -------------------------------------------------------------------------------------------------------------
Total 10,289,291 -- 2,872,984 --
=============================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS
REACHED AS FOLLOWS:
William J. Schneider
For -- 3,213 -- 1,041
Withhold -- 41 -- 60
- -------------------------------------------------------------------------------------------------------------
Total -- 3,254 -- 1,101
=============================================================================================================
Timothy R. Schwertfeger
For -- 3,213 -- 1,041
Withhold -- 41 -- 60
- -------------------------------------------------------------------------------------------------------------
Total -- 3,254 -- 1,101
=============================================================================================================
Judith M. Stockdale
For 9,995,701 -- 2,717,800 --
Withhold 293,590 -- 155,184 --
- -------------------------------------------------------------------------------------------------------------
Total 10,289,291 -- 2,872,984 --
=============================================================================================================
Carole E. Stone
For 10,004,132 -- 2,717,800 --
Withhold 285,159 -- 155,184 --
- -------------------------------------------------------------------------------------------------------------
Total 10,289,291 -- 2,872,984 --
=============================================================================================================
TO RATIFY THE SELECTION OF ERNST & YOUNG LLP
AS THE INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM FOR THE CURRENT FISCAL YEAR:
For 10,065,354 -- 2,786,277 --
Against 67,905 -- 62,041 --
Abstain 156,032 -- 24,666 --
- -------------------------------------------------------------------------------------------------------------
Total 10,289,291 -- 2,872,984 --
=============================================================================================================
14
| Nuveen Florida Investment Quality Municipal Fund
NQF | Portfolio of INVESTMENTS
October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.1% (1.2% OF TOTAL INVESTMENTS)
$ 5,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed 5/12 at 100.00 BBB $ 5,008,800
Refunding Bonds, Series 2002, 5.500%, 5/15/39
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 1.1% (0.6% OF TOTAL INVESTMENTS)
2,000 Broward County Educational Facilities Authority, Florida, Revenue Bonds, 4/14 at 100.00 BBB 2,051,260
Nova Southeastern University, Series 2004B, 5.625%, 4/01/34
575 Osceola County Industrial Development Authority, Florida, Industrial 8/11 at 101.00 AAA 589,979
Development Revenue Bonds, P.M. Wells Charter School Project, Series
2001A, 5.000%, 8/01/23 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
2,575 Total Education and Civic Organizations 2,641,239
- ------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 0.3% (0.2% OF TOTAL INVESTMENTS)
900 Virgin Islands Public Finance Authority, Revenue Bonds, Refinery Project 1/15 at 100.00 BBB 840,222
Hovensa LLC, Series 2007, 4.700%, 7/01/22 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 11.2% (6.6% OF TOTAL INVESTMENTS)
Brevard County Health Facilities Authority, Florida, Revenue Bonds, Health
First Inc. Project, Series 2005:
1,000 5.000%, 4/01/34 4/16 at 100.00 A 997,050
1,000 5.000%, 4/01/36 4/16 at 100.00 A 993,950
Halifax Hospital Medical Center, Florida, Revenue Bonds, Series 2006:
1,000 5.250%, 6/01/26 6/16 at 100.00 BBB+ 1,019,680
3,625 5.000%, 6/01/38 6/16 at 100.00 BBB+ 3,509,580
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 1,016,720
2,330 5.250%, 10/01/34 10/13 at 100.00 A3 2,353,463
1,185 Hillsborough County Industrial Development Authority, Florida, Hospital 10/16 at 100.00 A3 1,194,172
Revenue Bonds, Tampa General Hospital, Series 2006, 5.250%, 10/01/41
3,235 Lakeland, Florida, Hospital System Revenue Bonds, Lakeland Regional 11/16 at 100.00 A2 3,277,184
Medical Center, Series 2006, 5.000%, 11/15/26
2,345 Leesburg, Florida, Hospital Revenue Bonds, Leesburg Regional Medical 7/12 at 100.00 BBB+ 2,385,897
Center Project, Series 2002, 5.375%, 7/01/22
3,750 Marion County Hospital District, Florida, Revenue Bonds, Munroe Regional 10/17 at 100.00 A2 3,711,525
Medical Center, Series 2007, 5.000%, 10/01/34
550 North Broward Hospital District, Florida, Revenue and Improvement Bonds, 1/11 at 101.00 A 573,491
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 3,546,775
2,340 5.625%, 12/01/31 12/11 at 101.00 A 2,414,880
- ------------------------------------------------------------------------------------------------------------------------------------
26,770 Total Health Care 26,994,367
- ------------------------------------------------------------------------------------------------------------------------------------
15
NQF
Nuveen Florida Investment Quality Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 0.5% (0.3% OF TOTAL INVESTMENTS)
$ 1,070 Broward County Housing Finance Authority, Florida, Multifamily Housing 5/10 at 101.00 AAA $ 1,087,398
Revenue Bonds, Emerald Palms Apartments, Series 2001A, 5.600%, 7/01/21
(Alternative Minimum Tax)
135 Florida Housing Finance Agency, General Mortgage Revenue Refunding Bonds, 12/07 at 100.00 AA 137,935
Series 1992A, 6.400%, 6/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
1,205 Total Housing/Multifamily 1,225,333
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.9% (0.6% OF TOTAL INVESTMENTS)
400 Florida Housing Finance Agency, Homeowner Mortgage Revenue Bonds, New 1/08 at 101.00 AA+ 404,304
Money and Refunding Issue, Series 1996-2, 6.350%, 7/01/28
(Alternative Minimum Tax)
935 Florida Housing Finance Agency, Homeowner Mortgage Revenue Bonds, 1/08 at 102.00 AAA 951,288
Series 1997-2, 5.900%, 7/01/29 - MBIA Insured
(Alternative Minimum Tax)
1,000 Florida Housing Finance Corporation, Homeowner Mortgage Revenue Bonds, 1/16 at 100.00 AA+ 935,730
Series 2006-6, 4.625%, 7/01/31 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
2,335 Total Housing/Single Family 2,291,322
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.2% (0.7% OF TOTAL INVESTMENTS)
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 1,184,164
1,565 5.625%, 8/01/34 8/14 at 101.00 N/R 1,597,333
- ------------------------------------------------------------------------------------------------------------------------------------
2,690 Total Long-Term Care 2,781,497
- ------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.3% (1.4% OF TOTAL INVESTMENTS)
5,400 Hillsborough County Industrial Development Authority, Florida, Exempt 4/10 at 101.00 N/R 5,659,902
Facilities Remarketed Revenue Bonds, National Gypsum Company, Apollo
Beach Project, Series 2000B, 7.125%, 4/01/30 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 9.1% (5.3% OF TOTAL INVESTMENTS)
1,500 Florida State Board of Education, Full Faith and Credit Public Education 6/12 at 101.00 AAA 1,570,515
Capital Outlay Bonds, Series 2002F, 5.000%, 6/01/22 - MBIA Insured
2,080 Florida State Board of Education, Full Faith and Credit Public Education 6/13 at 100.00 AAA 2,189,429
Capital Outlay Bonds, Series 2003J, 5.000%, 6/01/21 - AMBAC Insured
9,230 Florida State Board of Education, Full Faith and Credit, Public Education 6/11 at 101.00 AAA 9,552,311
Capital Outlay Bonds, Series 2001C, 5.125%, 6/01/31 - FGIC Insured
8,000 Florida State Board of Education, Full Faith and Credit, Public Education 6/12 at 100.00 AAA 8,549,440
Capital Outlay Refunding Bonds, Series 2002D, 5.375%, 6/01/16 (4)
- ------------------------------------------------------------------------------------------------------------------------------------
20,810 Total Tax Obligation/General 21,861,695
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 51.2% (30.2% OF TOTAL INVESTMENTS)
3,000 Bartram Springs Community Development District, Duval County, Florida, 5/16 at 100.00 N/R 2,389,920
Special Assessment Bonds, Series 2006, 4.750%, 5/01/34
5,625 Broward County School Board, Florida, Certificates of Participation, 7/14 at 100.00 AAA 5,991,919
Series 2004C, 5.250%, 7/01/18 - FSA Insured
1,665 Collier County, Florida, Capital Improvement Revenue Bonds, Series 2005, 10/14 at 100.00 AAA 1,733,531
5.000%, 10/01/23 - MBIA Insured
230 Flagler County, Florida, Capital Improvement Revenue Bonds, Series 2005, 10/15 at 100.00 AAA 237,349
5.000%, 10/01/30 - MBIA Insured
1,280 Florida Intergovernmental Finance Commission, Capital Revenue Bonds, 8/11 at 100.00 Aaa 1,325,478
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, 5.000%, 5/13 at 100.00 AAA 1,763,218
5/01/22 - MBIA Insured
5,000 Florida Ports Financing Commission, Revenue Bonds, State Transportation 12/07 at 101.00 AAA 5,054,700
Trust Fund, Series 1996, 5.375%, 6/01/27 - MBIA Insured
(Alternative Minimum Tax)
16
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 3,000 Florida State Department of Management Services, Certificates of 8/15 at 101.00 AAA $ 3,132,690
Participation, Series 2006A, 5.000%, 8/01/23 - MBIA Insured
5,000 Hernando County, Florida, Revenue Bonds, Criminal Justice Complex No Opt. Call AAA 6,352,500
Financing Program, Series 1986, 7.650%, 7/01/16 - FGIC Insured
1,575 Hillsborough County, Florida, Community Investment Tax Revenue Bonds, 11/13 at 101.00 AAA 1,639,591
Series 2004, 5.000%, 5/01/24 - AMBAC Insured
2,190 Hillsborough County, Florida, Revenue Refunding Bonds, Tampa Bay Arena, 10/15 at 100.00 AAA 2,277,710
Series 2005, 5.000%, 10/01/25 - FGIC Insured
5,015 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue Bonds, Series 10/13 at 100.00 AAA 5,370,864
2003, 5.250%, 10/01/21 - MBIA Insured
2,000 Jacksonville, Florida, Guaranteed Entitlement Revenue Refunding and 10/12 at 100.00 AAA 2,088,400
Improvement Bonds, Series 2002, 5.000%, 10/01/22 - FGIC Insured
3,000 Miami-Dade County School Board, Florida, Certificates of Participation, 11/16 at 100.00 AAA 3,084,270
Series 2006B, 5.000%, 11/01/31 - AMBAC Insured
Miami-Dade County, Florida, Beacon Tradeport Community Development
District, Special Assessment Bonds, Commercial Project, Series 2002A:
2,195 5.250%, 5/01/16 - RAAI Insured 5/12 at 102.00 AA 2,288,156
1,700 5.625%, 5/01/32 - RAAI Insured 5/12 at 102.00 AA 1,759,296
1,215 North Dade Community Development District, Florida, Special Assessment 5/17 at 100.00 N/R 1,042,689
Bonds, Series 2007A, 5.350%, 5/01/38
1,000 Orange County School Board, Florida, Certificates of Participation, Series 8/16 at 100.00 AAA 1,028,840
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:
1,495 5.125%, 4/01/20 - AMBAC Insured 4/12 at 100.00 AAA 1,571,380
1,225 5.125%, 4/01/21 - AMBAC Insured 4/12 at 100.00 AAA 1,288,602
Osceola County, Florida, Transportation Revenue Bonds, Osceola Parkway,
Series 2004:
3,745 5.000%, 4/01/22 - MBIA Insured 4/14 at 100.00 Aaa 3,929,891
2,000 5.000%, 4/01/23 - MBIA Insured 4/14 at 100.00 Aaa 2,079,420
5,780 Palm Beach County School Board, Florida, Certificates of Participation, 8/16 at 100.00 AAA 6,396,842
Drivers Trust 2089, 7.696%, 8/01/31 - FSA Insured (IF)
1,670 Palm Beach County School Board, Florida, Certificates of Participation, 8/17 at 100.00 AAA 1,861,516
Residual Trust 1020, 7.826%, 8/01/27 - MBIA Insured (IF)
4,000 Palm Beach County School Board, Florida, Certificates of Participation, 8/12 at 100.00 AAA 4,078,400
Series 2002D, 5.000%, 8/01/28 - FSA Insured
2,560 Palm Beach County School Board, Florida, Certificates of Participation, 8/14 at 100.00 AAA 2,650,957
Series 2004A, 5.000%, 8/01/23 - FGIC Insured
4,490 Palm Beach County, Florida, Public Improvement Revenue Bonds, Biomedical 6/15 at 100.00 AAA 4,640,011
Research Park Project, Series 2005A, 5.000%, 6/01/25 - AMBAC Insured
2,500 Polk County School District, Florida, Sales Tax Revenue Bonds, Series 2004, 10/14 at 100.00 AAA 2,684,000
5.250%, 10/01/18 - FSA Insured
820 Rivercrest Community Development District, Florida, Special Assessment 5/18 at 100.00 AA 815,072
Bonds, Series 2007, 5.000%, 5/01/30 - RAAI Insured
2,750 Saint Johns County, Florida, Transportation Improvement Revenue Bonds, 10/13 at 100.00 AAA 2,872,898
Series 2003, 5.000%, 10/01/23 - AMBAC Insured
645 Sonoma Bay Community Development District, Florida, Special Assessment 5/15 at 100.00 N/R 564,020
Bonds, Series 2005A, 5.450%, 5/01/36
25,000 South Florida Water Management District, Certificates of Participation, 10/16 at 100.00 AAA 25,604,250
Series 2006, 5.000%, 10/01/36 - AMBAC Insured (UB)
17
NQF
Nuveen Florida Investment Quality Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
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 $ 1,441,050
2,835 5.750%, 10/01/25 - MBIA Insured No Opt. Call AAA 3,329,934
8,605 Volusia County School Board, Florida, Sales Tax Revenue Bonds, Series 10/12 at 100.00 AAA 9,255,279
2002, 5.375%, 10/01/15 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
117,745 Total Tax Obligation/Limited 123,624,643
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 40.6% (24.0% OF TOTAL INVESTMENTS)
11,500 Broward County, Florida, Airport System Revenue Bonds, Series 2001-J1, 10/11 at 101.00 AAA 11,784,509
5.250%, 10/01/26 - AMBAC Insured (Alternative Minimum Tax)
2,150 Broward County, Florida, Airport System Revenue Bonds, Series 2004L, 10/14 at 100.00 AAA 2,228,067
5.000%, 10/01/23 - AMBAC Insured
3,500 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 5.750%, 4/08 at 101.00 AAA 3,539,410
10/01/26 - MBIA Insured (Alternative Minimum Tax)
6,000 Florida State Turnpike Authority, Turnpike Revenue Bonds, Department of 7/13 at 101.00 Aa2 6,137,820
Transportation, Series 2003C, 5.000%, 7/01/33
12,000 Greater Orlando Aviation Authority, Florida, Airport Facilities Revenue 10/09 at 101.00 AAA 12,114,239
Bonds, Series 1999A, 5.125%, 10/01/28 - FGIC Insured
(Alternative Minimum Tax)
4,000 Greater Orlando Aviation Authority, Florida, Airport Facilities Revenue 10/12 at 100.00 AAA 4,139,320
Bonds, Series 2002B, 5.125%, 10/01/21 - FSA Insured
(Alternative Minimum Tax)
2,500 Lee County, Florida, Airport Revenue Bonds, Series 2006, 5.000%, 10/15 at 100.00 AAA 2,559,800
10/01/33 - FSA Insured
6,690 Miami-Dade County Expressway Authority, Florida, Toll System Revenue 7/14 at 100.00 AAA 7,070,929
Bonds, Series 2004B, 5.000%, 7/01/20 - FGIC Insured
17,430 Miami-Dade County Expressway Authority, Florida, Toll System Revenue 7/16 at 100.00 AAA 18,029,766
Bonds, Series 2006, 5.000%, 7/01/31 - AMBAC Insured (UB)
1,750 Miami-Dade County Industrial Development Authority, Florida, Industrial 10/09 at 101.00 AAA 1,831,200
Development Revenue Bonds, Airis Miami II LLC - Miami International
Airport, Series 1999, 6.000%, 10/15/25 - AMBAC Insured
(Alternative Minimum Tax)
16,825 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International 10/15 at 100.00 AAA 16,846,031
Airport, Series 2005A, 5.000%, 10/01/38 - CIFG Insured
(Alternative Minimum Tax) (UB)
5,390 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International 10/12 at 100.00 AAA 5,768,540
Airport, Series 2002, 5.750%, 10/01/18 - FGIC Insured
(Alternative Minimum Tax)
5,360 Tampa-Hillsborough County Expressway Authority, Florida, Revenue Bonds, 7/15 at 101.00 AAA 5,785,209
Series 2005, 5.000%, 7/01/16 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
95,095 Total Transportation 97,834,840
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 29.2% (17.3% OF TOTAL INVESTMENTS) (5)
7,225 Dade County, Florida, Special Obligation and Refunding Bonds, Series 10/08 at 48.83 AAA 3,417,497
1996B, 0.000%, 10/01/20 (Pre-refunded 10/01/08) - AMBAC Insured
12,800 Escambia County Health Facilities Authority, Florida, Revenue Bonds, 11/09 at 101.00 AAA 13,544,827
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, Hospital Revenue 11/11 at 101.00 A1 (5) 5,046,752
Bonds, Adventist Health System/Sunbelt Obligated Group,
Series 2001A, 6.000%, 11/15/31 (Pre-refunded 11/15/11)
Miami-Dade County Educational Facilities Authority, Florida, Revenue
Bonds, University of Miami, Series 2004A:
2,290 5.000%, 4/01/19 (Pre-refunded 4/01/14) - AMBAC Insured 4/14 at 100.00 AAA 2,467,406
3,305 5.000%, 4/01/22 (Pre-refunded 4/01/14) - AMBAC Insured 4/14 at 100.00 AAA 3,561,038
3,000 Miami-Dade County Health Facility Authority, Florida, Hospital Revenue 8/11 at 101.00 AAA 3,191,670
Refunding Bonds, Miami Children's Hospital, Series 2001A, 5.125%,
8/15/26 (Pre-refunded 8/15/11) - AMBAC Insured
18
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (5) (continued)
$ 5,450 North Broward Hospital District, Florida, Revenue and Improvement Bonds, 1/11 at 101.00 A (5) $ 5,898,699
Series 2001, 6.000%, 1/15/31 (Pre-refunded 1/15/11)
6,000 Orange County Health Facilities Authority, Florida, Hospital Revenue Bonds, 11/10 at 101.00 A+ (5) 6,567,600
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 Revenue Bonds, 12/12 at 100.00 A (5) 4,060,029
Orlando Regional Healthcare System, Series 2002, 5.750%, 12/01/27
(Pre-refunded 12/01/12)
2,625 Orlando Utilities Commission, Florida, Water and Electric Revenue 10/11 at 101.00 Aa1 (5) 2,815,103
Refunding Bonds, Series 2001, 5.250%, 10/01/18 (Pre-refunded 10/01/11)
4,295 Orlando Utilities Commission, Florida, Water and Electric Revenue 10/12 at 100.00 Aa1 (5) 4,626,660
Refunding Bonds, Series 2002C, 5.250%, 10/01/18 (Pre-refunded 10/01/12)
5,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2002II, 7/12 at 101.00 AAA 5,399,400
5.125%, 7/01/26 (Pre-refunded 7/01/12) - FSA Insured
3,570 Seminole County, Florida, Water and Sewer Revenue Refunding and No Opt. Call AAA 4,118,495
Improvement Bonds, Series 1992, 6.000%, 10/01/19 - MBIA Insured (ETM)
5,375 South Broward Hospital District, Florida, Hospital Revenue Bonds, Series 5/12 at 101.00 AA- (5) 5,875,090
2002, 5.625%, 5/01/32 (Pre-refunded 5/01/12)
- ------------------------------------------------------------------------------------------------------------------------------------
69,230 Total U.S. Guaranteed 70,590,266
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.9% (4.7% OF TOTAL INVESTMENTS)
4,330 Hillsborough County Industrial Development Authority, Florida, Pollution 10/12 at 100.00 Baa2 4,457,735
Control Revenue Bonds, Tampa Electric Company Project, Series 2002,
5.100%, 10/01/13
1,050 Jacksonville Beach, Florida, Utility Revenue Refunding Bonds, Series 2002, 10/10 at 100.00 Aaa 1,091,213
5.000%, 4/01/17 - AMBAC Insured
4,250 Lakeland, Florida, Energy System Revenue Refunding Bonds, Series 1999C, No Opt. Call AAA 4,635,985
6.050%, 10/01/11 - FGIC Insured
5,000 Orlando Utilities Commission, Florida, Water and Electric Revenue No Opt. Call Aa1 5,345,700
Refunding Bonds, Series 1992, 6.000%, 10/01/10
2,720 Orlando Utilities Commission, Florida, Water and Electric Revenue 10/11 at 101.00 Aa1 2,888,205
Refunding Bonds, Series 2001, 5.250%, 10/01/18
705 Orlando Utilities Commission, Florida, Water and Electric Revenue 10/12 at 100.00 Aa1 749,288
Refunding Bonds, Series 2002C, 5.250%, 10/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
18,055 Total Utilities 19,168,126
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 11.5% (6.8% OF TOTAL INVESTMENTS)
3,310 Cocoa, Florida, Water and Sewerage System Revenue Refunding Bonds, Series No Opt. Call AAA 3,783,694
2003, 5.500%, 10/01/23 - AMBAC Insured
1,000 Jacksonville, Florida, Water and Sewer Revenue Bonds, United Water Florida 2/08 at 100.00 AAA 1,001,940
Project, Series 1995, 6.350%, 8/01/25 - AMBAC Insured (Alternative
Minimum Tax)
1,525 Lee County, Florida, Water and Sewer Revenue Refunding Bonds, Series 10/13 at 100.00 Aaa 1,609,119
2003A, 5.000%, 10/01/20 - MBIA Insured
8,300 Miami-Dade County, Florida, Water and Sewer System Revenue Bonds, Series 10/09 at 101.00 AAA 8,439,772
1999A, 5.000%, 10/01/29 - FGIC Insured
1,175 Naples, Florida, Water and Sewer Revenue Bonds, Series 2002, 5.000%, 9/12 at 100.00 Aa2 1,244,114
9/01/14
2,060 Polk County, Florida, Utility System Revenue Bonds, Series 2003, 5.250%, 10/13 at 100.00 Aaa 2,198,885
10/01/22 - FGIC Insured
2,780 Riviera Beach, Palm Beach County, Florida, Water and Sewerage Revenue 10/14 at 100.00 Aaa 2,889,365
Bonds, Series 2004, 5.000%, 10/01/24 - FGIC Insured
2,275 Sarasota County, Florida, Utility System Revenue Bonds, Series 2005A, 10/15 at 100.00 AAA 2,359,949
5.000%, 10/01/27 - FGIC Insured
19
NQF
Nuveen Florida Investment Quality Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
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 Refunding and No Opt. Call AAA $ 1,931,194
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 742,994
1,585 5.000%, 4/01/20 - MBIA Insured 4/11 at 101.00 AAA 1,657,007
- ------------------------------------------------------------------------------------------------------------------------------------
26,390 Total Water and Sewer 27,858,033
- ------------------------------------------------------------------------------------------------------------------------------------
$ 394,200 Total Long-Term Investments (cost $393,604,542) - 169.1% 408,380,285
===============---------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.1% (0.1% OF TOTAL INVESTMENTS)
$ 300 Puerto Rico Government Development Bank, Adjustable Refunding A-1+ 300,000
Bonds, Variable Rate Demand Obligations, Series 1985, 3.200%,
12/01/15 - MBIA Insured (6)
===============---------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $300,000) 300,000
---------------------------------------------------------------------------------------------------------------------
Total Investments (cost $393,904,542) - 169.2% 408,680,285
---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (16.4)% (39,500,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 4,366,326
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.6)% (132,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 241,546,611
=====================================================================================================================
FORWARD SWAPS OUTSTANDING AT OCTOBER 31, 2007:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION)
- ----------------------------------------------------------------------------------------------------------------------------------
3-Month Semi
Morgan Stanley $7,000,000 Receive USD-LIBOR 5.823% -Annually 6/04/08 6/04/18 $(364,596)
==================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
The Fund may invest in "zero coupon" securities. A zero coupon security
does not pay a regular interest coupon to its holders during the life of
the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the
security at issuance and the par value of the security at maturity and is
effectively paid at maturity. Such securities are included in the
Portfolio of Investments with a 0.000% coupon rate in their description.
The market prices of zero coupon securities generally are more volatile
than the market prices of securities that pay interest periodically.
(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: 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: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
(4) Portion of investment, with an aggregate market value of $512,966, has
been pledged to collateralize the net payment obligations under forward
swap contracts.
(5) 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.
(6) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(7) 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.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20
NUF
Nuveen Florida Quality Income Municipal Fund
Portfolio of INVESTMENTS
October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.7% (7.3% 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 $ 1,033,210
500 5.625%, 4/01/34 4/14 at 100.00 BBB 512,815
2,000 Florida Board of Education, Lottery Revenue Bonds, Series 2001B, 5.000%, 7/11 at 101.00 AAA 2,095,520
7/01/20 - FGIC Insured
14,985 Florida State Board of Education, State University System Revenue Bonds, 7/15 at 101.00 AAA 15,522,362
Series 2006A, 5.000%, 7/01/30 - FGIC Insured (UB)
2,580 Florida State Education System, Housing Facility Revenue Bonds, Florida No Opt. Call AAA 2,775,641
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 2,495,596
Educationaland Athletic Facilities Improvements, Series 2004,
5.000%, 10/01/16 - AMBAC Insured
2,275 University of Central Florida, Certificates of Participation, Athletic 10/14 at 100.00 AAA 2,386,885
Association, Series 2004A, 5.125%, 10/01/21 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
25,685 Total Education and Civic Organizations 26,822,029
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 16.1% (9.3% OF TOTAL INVESTMENTS)
Brevard County Health Facilities Authority, Florida, Revenue Bonds,
Health First Inc. Project, Series 2005:
1,000 5.000%, 4/01/34 4/16 at 100.00 A 997,050
1,000 5.000%, 4/01/36 4/16 at 100.00 A 993,950
1,500 Citrus County Hospital Board, Florida, Revenue Refunding Bonds, Citrus 8/13 at 100.00 Baa3 1,591,215
Memorial Hospital, Series 2002, 6.375%, 8/15/32
Halifax Hospital Medical Center, Florida, Revenue Bonds, Series 2006:
1,000 5.250%, 6/01/26 6/16 at 100.00 BBB+ 1,019,680
3,240 5.000%, 6/01/38 6/16 at 100.00 BBB+ 3,136,838
1,000 Highlands County Health Facilities Authority, Florida, Hospital Revenue 11/15 at 100.00 A+ 1,004,250
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 508,360
1,590 5.250%, 10/01/34 10/13 at 100.00 A3 1,606,011
1,180 Hillsborough County Industrial Development Authority, Florida, Hospital 10/16 at 100.00 A3 1,189,133
Revenue Bonds, Tampa General Hospital, Series 2006, 5.250%, 10/01/41
2,000 Hillsborough County Industrial Development Authority, Florida, Hospital 10/13 at 100.00 A3 2,047,860
Revenue Refunding Bonds, Tampa General Hospital, Series 2003A, 5.250%,
10/01/24
8,500 Jacksonville Economic Development Commission, Florida, Healthcare 11/11 at 101.00 AA 8,897,629
Facilities Revenue Bonds, Mayo Clinic, Series 2001A, 5.500%, 11/15/36
3,000 Lakeland, Florida, Hospital System Revenue Bonds, Lakeland Regional 11/16 at 100.00 A2 3,004,260
Medical Center, Series 2006, 5.000%, 11/15/32
3,430 Leesburg, Florida, Hospital Revenue Refunding Bonds, Leesburg Regional No Opt. Call BBB+ 3,523,776
Medical Center Project, Series 2003, 5.000%, 7/01/12
21
NUF
Nuveen Florida Quality Income Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 3,750 Marion County Hospital District, Florida, Revenue Bonds, Munroe Regional 10/17 at 100.00 A2 $ 3,711,525
Medical Center, Series 2007, 5.000%, 10/01/34
825 North Broward Hospital District, Florida, Revenue and Improvement Bonds, 1/11 at 101.00 A 860,236
Series 2001, 6.000%, 1/15/31
- ------------------------------------------------------------------------------------------------------------------------------------
33,515 Total Health Care 34,091,773
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 9.3% (5.4% 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 1/08 at 101.00 AAA 1,514,715
1,000 6.300%, 1/01/32 1/08 at 101.00 AAA 1,009,010
120 Florida Housing Finance Agency, General Mortgage Revenue Refunding Bonds, 12/07 at 100.00 AA 122,609
Series 1992A, 6.400%, 6/01/24
1,000 Florida Housing Finance Agency, Housing Revenue Bonds, Holly Cove 4/08 at 100.00 AAA 1,000,740
Apartments, Series 1995F, 6.150%, 10/01/25 - AMBAC Insured
(Alternative Minimum Tax)
5,790 Florida Housing Finance Corporation, FNMA Revenue Bonds, Villa de 10/10 at 102.00 Aaa 5,982,054
Mallorca Apartments, Series 2000H-1, 6.000%, 7/01/33
(Alternative Minimum Tax)
3,170 Florida Housing Finance Corporation, Housing Revenue Refunding Bonds, 12/08 at 102.00 AA 3,177,608
Hunters Ridge at Deerwood Apartments, Series 1998-0, 5.300%, 12/01/28
3,630 Miami-Dade County Housing Finance Authority, Florida, Multifamily Housing 1/11 at 102.00 AAA 3,749,173
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 Housing 1/08 at 100.00 AAA 3,246,998
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 19,802,907
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.9% (0.5% OF TOTAL INVESTMENTS)
470 Broward County Housing Finance Authority, Florida, Single Family Mortgage 4/10 at 25.36 Aaa 103,189
Revenue Bonds, Series 2001C, 0.000%, 4/01/33 (Alternative Minimum Tax)
295 Broward County Housing Finance Authority, Florida, Single Family Mortgage 4/09 at 25.51 Aaa 68,387
Revenue Refunding Bonds, Series 2000B, 0.000%, 4/01/29
(Alternative Minimum Tax)
255 Florida Housing Finance Agency, GNMA Collateralized Home Ownership No Opt. Call AAA 269,155
Revenue Refunding Bonds, Series 1987G-1, 8.595%, 11/01/17
1,000 Florida Housing Finance Corporation, Homeowner Mortgage Revenue Bonds, 1/16 at 100.00 AA+ 935,730
Series 2006-6, 4.625%, 7/01/31 (Alternative Minimum Tax)
30 Miami-Dade County Housing Authority, Florida, Home Owner Mortgage Revenue 4/08 at 101.50 Aaa 30,244
Bonds, Series 1999A-1, 5.550%, 10/01/19 (Alternative Minimum Tax)
510 Orange County Housing Finance Authority, Florida, Single Family Mortgage 4/08 at 100.00 AAA 512,219
Revenue Bonds, Series 1996A, 6.300%, 4/01/28 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
2,560 Total Housing/Single Family 1,918,924
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.8% (2.8% OF TOTAL INVESTMENTS)
7,285 Atlantic Beach, Florida, Healthcare Facilities Revenue Refunding Bonds, 10/09 at 101.00 A 7,474,483
Fleet Landing Project, Series 1999, 5.750%, 10/01/18 - ACA Insured
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 1,184,164
1,570 5.625%, 8/01/34 8/14 at 101.00 N/R 1,602,436
- ------------------------------------------------------------------------------------------------------------------------------------
9,980 Total Long-Term Care 10,261,083
- ------------------------------------------------------------------------------------------------------------------------------------
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.3% (1.3% OF TOTAL INVESTMENTS)
$ 4,600 Hillsborough County Industrial Development Authority, Florida, Exempt 4/10 at 101.00 N/R $ 4,821,398
Facilities Remarketed Revenue Bonds, National Gypsum Company, Apollo
Beach Project, Series 2000B, 7.125%, 4/01/30 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 9.5% (5.5% OF TOTAL INVESTMENTS)
15,925 Florida State Board of Education, Full Faith and Credit Public Education 6/12 at 101.00 AAA 16,755,806
Capital Outlay Bonds, Series 2002B, 5.000%, 6/01/20 - MBIA Insured
3,240 Reedy Creek Improvement District, Orange and Osceola Counties, Florida, 4/14 at 100.00 AAA 3,401,287
General Obligation Bonds, Series 2004A, 5.000%, 6/01/22 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
19,165 Total Tax Obligation/General 20,157,093
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 47.7% (27.6% OF TOTAL INVESTMENTS)
1,000 Alachua County School Board, Florida, Certificates of Participation, 7/11 at 101.00 Aaa 1,040,400
Series 2001, 5.000%, 7/01/21 - AMBAC Insured
3,000 Bartram Springs Community Development District, Duval County, Florida, 5/16 at 100.00 N/R 2,389,920
Special Assessment Bonds, Series 2006, 4.750%, 5/01/34
1,055 Bay County School Board, Florida, Certificates of Participation, Series 7/14 at 100.00 Aaa 1,090,248
2004, 5.000%, 7/01/24 - AMBAC Insured
3,870 Broward County School Board, Florida, Certificates of Participation, 7/14 at 100.00 AAA 4,102,781
Series 2004C, 5.250%, 7/01/20 - FSA Insured
1,500 Collier County, Florida, Capital Improvement Revenue Bonds, Series 2005, 10/14 at 100.00 AAA 1,561,740
5.000%, 10/01/23 - MBIA Insured
1,290 Escambia County, Florida, Tourist Development Revenue Refunding Bonds, 10/12 at 100.00 AAA 1,354,952
Series 2002, 5.000%, 10/01/18 - MBIA Insured
4,000 Flagler County, Florida, Capital Improvement Revenue Bonds, Series 2005, 10/15 at 100.00 AAA 4,127,800
5.000%, 10/01/30 - MBIA Insured
8,425 Florida Department of Environmental Protection, Florida Forever Revenue 7/13 at 101.00 AAA 8,925,361
Bonds, Series 2003C, 5.000%, 7/01/19 - AMBAC Insured (UB)
Florida Municipal Loan Council, Revenue Bonds, Series 2000B:
1,040 0.000%, 11/01/25 - MBIA Insured No Opt. Call AAA 453,066
1,590 0.000%, 11/01/26 - MBIA Insured No Opt. Call AAA 657,751
3,000 Florida State Department of Management Services, Certificates of 8/15 at 101.00 AAA 3,132,690
Participation, Series 2006A, 5.000%, 8/01/23 - MBIA Insured
1,430 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue Bonds, 10/11 at 100.00 AAA 1,481,838
Series 2001, 5.000%, 10/01/23 - AMBAC Insured
2,090 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue Bonds, 10/13 at 100.00 AAA 2,186,307
Series 2003, 5.000%, 10/01/22 - MBIA Insured
3,145 Jacksonville, Florida, Excise Taxes Revenue Refunding Bonds, Series 2003C, 10/13 at 100.00 AAA 3,307,880
5.250%, 10/01/18 - MBIA Insured (Alternative Minimum Tax)
2,230 Jacksonville, Florida, Guaranteed Entitlement Revenue Refunding and 10/12 at 100.00 AAA 2,342,281
Improvement Bonds, Series 2002, 5.000%, 10/01/21 - FGIC Insured
2,750 Jacksonville, Florida, Local Government Sales Tax Revenue Refunding and 10/12 at 100.00 AAA 2,943,765
Improvement Bonds, Series 2002, 5.375%, 10/01/17 - FGIC Insured
1,000 Jacksonville, Florida, Local Government Sales Tax Revenue Refunding Bonds, No Opt. Call AAA 1,107,000
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 1,237,422
1,340 5.000%, 7/01/22 - AMBAC Insured 7/14 at 100.00 AAA 1,385,547
1,470 5.000%, 7/01/24 - AMBAC Insured 7/14 at 100.00 AAA 1,509,705
23
NUF
Nuveen Florida Quality Income Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 5,130 Manatee County School District, Florida, Sales Tax Revenue Bonds, Series 10/13 at 100.00 AAA $ 5,470,068
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 2,052,539
850 5.625%, 5/01/32 - RAAI Insured 5/12 at 102.00 AA 879,648
1,200 North Dade Community Development District, Florida, Special Assessment 5/17 at 100.00 N/R 1,029,816
Bonds, Series 2007A, 5.350%, 5/01/38
2,475 Northern Palm Beach County Improvement District, Florida, Revenue Bonds, 8/10 at 102.00 AA 2,618,971
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, Series 1994, 1/08 at 100.00 AAA 2,003,940
6.125%, 1/01/24 - FGIC Insured
8,000 Orange County School Board, Florida, Certificates of Participation, 8/16 at 100.00 AAA 8,230,720
Series 2006A, 5.000%, 8/01/30 - FGIC Insured (UB)
2,440 Orange County School Board, Florida, Certificates of Participation, 8/14 at 100.00 Aaa 2,531,036
Series 2004A, 5.000%, 8/01/22 - AMBAC Insured
Orange County, Florida, Sales Tax Revenue Bonds, Series 2002A:
1,665 5.125%, 1/01/20 - FGIC Insured 1/13 at 100.00 AAA 1,758,323
3,400 5.125%, 1/01/23 - FGIC Insured 1/13 at 100.00 AAA 3,570,272
2,040 Palm Beach County School Board, Florida, Certificates of Participation, 8/12 at 100.00 AAA 2,155,525
Series 2002D, 5.250%, 8/01/21 - FSA Insured
1,500 Palm Beach County School Board, Florida, Certificates of Participation, 8/14 at 100.00 AAA 1,555,965
Series 2004A, 5.000%, 8/01/22 - FGIC Insured
1,350 Port St. Lucie, Florida, Sales Tax Revenue Bonds, Series 2003, 5.000%, 9/13 at 100.00 AAA 1,423,494
9/01/21 - MBIA Insured
825 Rivercrest Community Development District, Florida, Special Assessment 5/18 at 100.00 AA 820,042
Bonds, Series 2007, 5.000%, 5/01/30 - RAAI Insured
5,000 Sumter County, Florida, Capital Improvement Revenue Bonds, Series 2006, 6/16 at 100.00 AAA 5,142,100
5.000%, 6/01/36 - AMBAC Insured
11,815 Volusia County School Board, Florida, Sales Tax Revenue Bonds, Series 10/12 at 100.00 AAA 12,707,859
2002, 5.375%, 10/01/14 - FSA Insured
1,000 Volusia County, Florida, Tax Revenue Bonds, Tourist Development, Series 12/14 at 100.00 Aaa 1,040,150
2004, 5.000%, 12/01/24 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
99,080 Total Tax Obligation/Limited 101,328,922
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 38.1% (22.0% OF TOTAL INVESTMENTS)
2,225 Broward County, Florida, Airport System Revenue Bonds, Series 2001-J1, 10/11 at 101.00 AAA 2,300,761
5.250%, 10/01/21 - AMBAC Insured (Alternative Minimum Tax)
12,000 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 5.750%, 4/08 at 101.00 AAA 12,135,119
10/01/26 - MBIA Insured (Alternative Minimum Tax)
4,000 Greater Orlando Aviation Authority, Florida, Airport Facilities Revenue 10/12 at 100.00 AAA 4,139,320
Bonds, Series 2002B, 5.125%, 10/01/21 - FSA Insured
(Alternative Minimum Tax)
2,500 Lee County, Florida, Airport Revenue Bonds, Series 2006, 5.000%, 10/01/33 10/15 at 100.00 AAA 2,559,800
- FSA Insured
1,000 Lee County, Florida, Transportation Facilities Revenue Bonds, Series No Opt. Call AAA 1,078,030
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 4,295,802
2,000 5.250%, 7/01/18 - FGIC Insured 7/14 at 100.00 AAA 2,147,340
2,000 5.000%, 7/01/23 - FGIC Insured 7/14 at 100.00 AAA 2,079,700
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 17,430 Miami-Dade County Expressway Authority, Florida, Toll System Revenue 7/16 at 100.00 AAA $ 18,029,766
Bonds, Series 2006, 5.000%, 7/01/31 - AMBAC Insured (UB)
2,000 Miami-Dade County Expressway Authority, Florida, Toll System Revenue 7/11 at 101.00 Aaa 2,095,520
Refunding Bonds, Series 2001, 5.000%, 7/01/21 - FGIC Insured
12,820 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International 10/15 at 100.00 AAA 12,836,025
Airport, Series 2005A, 5.000%, 10/01/38 - CIFG Insured (UB)
7,500 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International 10/08 at 101.00 AAA 7,570,500
Airport, Series 1998A, 5.000%, 10/01/24 - FGIC Insured
(Alternative Minimum Tax)
4,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International 10/08 at 101.00 AAA 4,040,880
Airport, Series 1998C, 5.000%, 10/01/23 - MBIA Insured
(Alternative Minimum Tax)
5,000 Tampa-Hillsborough County Expressway Authority, Florida, Revenue Bonds, 7/15 at 101.00 AAA 5,396,650
Series 2005, 5.000%, 7/01/16 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
78,430 Total Transportation 80,705,213
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 16.1% (9.3% OF TOTAL INVESTMENTS) (4)
1,500 Bradford County Health Facility Authority, Florida, Revenue Refunding No Opt. Call AAA 1,683,150
Bonds, Santa Fe Healthcare Inc., Series 1993, 6.050%, 11/15/16 (ETM)
750 Gainesville, Florida, Utilities System Revenue Bonds, Series 2003A, 10/13 at 100.00 AA (4) 816,855
5.250%, 10/01/21 (Pre-refunded 10/01/13)
2,600 Highlands County Health Facilities Authority, Florida, Hospital Revenue 11/11 at 101.00 A1 (4) 2,852,512
Bonds, Adventist Health System/Sunbelt Obligated Group, Series 2001A,
6.000%, 11/15/31 (Pre-refunded 11/15/11)
3,580 Miami-Dade County Educational Facilities Authority, Florida, Revenue 4/14 at 100.00 AAA 3,857,343
Bonds, University of Miami, Series 2004A, 5.000%, 4/01/20 (Pre-refunded
4/01/14) - AMBAC Insured
8,175 North Broward Hospital District, Florida, Revenue and Improvement Bonds, 1/11 at 101.00 A (4) 8,848,048
Series 2001, 6.000%, 1/15/31 (Pre-refunded 1/15/11)
5,000 Orange County Health Facilities Authority, Florida, Hospital Revenue 11/12 at 101.00 A2 (4) 5,405,550
Bonds, Adventist Health System/Sunbelt Obligated Group, Series 2002,
5.250%, 11/15/18 (Pre-refunded 11/15/12)
3,000 Orange County Health Facilities Authority, Florida, Hospital Revenue 12/12 at 100.00 A (4) 3,296,370
Bonds, Orlando Regional Healthcare System, Series 2002, 5.750%,
12/01/32 (Pre-refunded 12/01/12)
2,070 Orlando Utilities Commission, Florida, Water and Electric Revenue 10/11 at 101.00 Aa1 (4) 2,219,909
Refunding Bonds, Series 2001, 5.250%, 10/01/17 (Pre-refunded 10/01/11)
4,625 South Broward Hospital District, Florida, Hospital Revenue Bonds, Series 5/12 at 101.00 AA- (4) 5,055,310
2002, 5.625%, 5/01/32 (Pre-refunded 5/01/12)
- ------------------------------------------------------------------------------------------------------------------------------------
31,300 Total U.S. Guaranteed 34,035,047
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.7% (5.0% OF TOTAL INVESTMENTS)
4,800 Hillsborough County Industrial Development Authority, Florida, Pollution 10/12 at 100.00 Baa2 4,941,600
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 Refunding Bonds, 10/11 at 100.00 Aa2 9,915,020
Issue 2, Series 2002-17, 5.000%, 10/01/15
1,220 Orlando Utilities Commission, Florida, Water and Electric Revenue 10/11 at 101.00 Aa1 1,300,727
Refunding Bonds, Series 2001, 5.250%, 10/01/17
445 Orlando Utilities Commission, Florida, Water and Electric Revenue 10/12 at 100.00 Aa1 473,676
Refunding Bonds, Series 2002C, 5.250%, 10/01/17
650 Reedy Creek Improvement District, Florida, Utility Revenue Bonds, 10/15 at 100.00 AAA 677,352
Series 2005-1, 5.000%, 10/01/25 - AMBAC Insured
1,170 Tallahassee, Florida, Consolidated Utility System Revenue Bonds, Series 10/15 at 100.00 AAA 1,219,234
2005, 5.000%, 10/01/25 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
17,725 Total Utilities 18,527,609
- ------------------------------------------------------------------------------------------------------------------------------------
25
NUF
Nuveen Florida Quality Income Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.9% (4.0% OF TOTAL INVESTMENTS)
$ 1,500 Hollywood, Florida, Water and Sewer Revenue Refunding and Improvement 10/13 at 100.00 Aaa $ 1,582,740
Bonds, Series 2003, 5.000%, 10/01/20 - FSA Insured
JEA, Florida, Water and Sewerage System Revenue Bonds, Series 2004A:
3,235 5.000%, 10/01/18 - FGIC Insured 10/13 at 100.00 AAA 3,413,443
5,090 5.000%, 10/01/19 - FGIC Insured 10/13 at 100.00 AAA 5,370,764
3,000 5.000%, 10/01/23 - FGIC Insured 10/13 at 100.00 AAA 3,134,070
1,065 Lee County Industrial Development Authority, Florida, Utilities Revenue 11/12 at 100.00 AAA 1,092,924
Bonds, Bonita Springs Utilities Inc. Project, Series 2002, 5.000%,
11/01/19 - MBIA Insured (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
13,890 Total Water and Sewer 14,593,941
- ------------------------------------------------------------------------------------------------------------------------------------
$ 355,380 Total Investments (cost $359,134,971) - 173.1% 367,065,939
===============---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (19.4)% (41,110,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 3,055,903
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.2)% (117,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 212,011,842
=====================================================================================================================
The Fund may invest in "zero coupon" securities. A zero coupon security
does not pay a regular interest coupon to its holders during the life of
the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the
security at issuance and the par value of the security at maturity and is
effectively paid at maturity. Such securities are included in the
Portfolio of Investments with a 0.000% coupon rate in their description.
The market prices of zero coupon securities generally are more volatile
than the market prices of securities that pay interest periodically.
(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: 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: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's 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.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26
NFL
Nuveen Insured Florida Premium Income Municipal Fund
Portfolio of INVESTMENTS
October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.9% (3.1% OF TOTAL INVESTMENTS)
$ 10,255 Tampa, Florida, Revenue Bonds, University of Tampa, Series 2006, 5.000%, 4/16 at 100.00 Aaa $ 10,540,397
4/01/35 - CIFG Insured (UB)
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 3.7% (2.3% OF TOTAL INVESTMENTS)
2,000 Brevard County Health Facilities Authority, Florida, Hospital Revenue 4/08 at 100.00 AAA 2,003,060
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 2,984,275
Industrial Development Revenue Bonds, University Community Hospital,
Series 1994, 6.500%, 8/15/19 - MBIA Insured
3,015 North Broward Hospital District, Florida, Revenue Refunding and 1/09 at 100.00 AAA 3,048,497
Improvement Bonds, Series 1997, 5.375%, 1/15/24 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
7,515 Total Health Care 8,035,832
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 10.2% (6.4% OF TOTAL INVESTMENTS)
975 Broward County Housing Finance Authority, Florida, GNMA Collateralized 12/07 at 102.00 Aaa 990,132
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 1,269,437
1,000 5.400%, 9/01/23 - FSA Insured (Alternative Minimum Tax) 3/08 at 101.00 AAA 1,005,410
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 1,047,790
1,400 5.400%, 9/01/23 - FSA Insured (Alternative Minimum Tax) 3/08 at 101.00 AAA 1,407,574
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) 3/08 at 101.00 AAA 1,238,967
1,890 5.750%, 9/01/29 - FSA Insured (Alternative Minimum Tax) 3/08 at 101.00 AAA 1,901,208
1,395 Florida Housing Finance Agency, Housing Revenue Bonds, Riverfront 4/08 at 101.00 AAA 1,416,106
Apartments, Series 1997A, 6.250%, 4/01/37 - AMBAC Insured
(Alternative Minimum Tax)
1,000 Florida Housing Finance Agency, Housing Revenue Bonds, Turtle Creek 11/07 at 101.00 AAA 1,005,930
Apartments, Series 1996C-1, 6.100%, 5/01/16 - AMBAC Insured
(Alternative Minimum Tax)
2,050 Florida Housing Finance Corporation, GNMA Collateralized Housing Revenue 12/10 at 102.00 Aaa 2,175,091
Bonds, Cobblestone Apartments, Series 2000K-1, 6.000%, 12/01/33
(Alternative Minimum Tax)
2,475 Florida Housing Finance Corporation, GNMA Collateralized Housing Revenue 9/10 at 102.00 AAA 2,595,062
Bonds, Raintree Apartments, Series 2000J-1, 5.950%, 3/01/35
(Alternative Minimum Tax)
3,370 Jacksonville, Florida, GNMA Collateralized Housing Revenue Refunding 3/08 at 100.00 AAA 3,403,633
Bonds, Windermere Manor Apartments, Series 1993A, 5.875%, 3/20/28
1,425 Miami-Dade County Housing Finance Authority, Florida, Multifamily 6/11 at 100.00 AAA 1,461,238
Mortgage Revenue Bonds, Country Club Villas II Project, Series 2001-1A,
5.750%, 7/01/27 - FSA Insured (Alternative Minimum Tax)
27
NFL
Nuveen Insured Florida Premium Income Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 1,065 Palm Beach County Housing Finance Authority, Florida, Multifamily 7/12 at 100.00 AAA $ 1,076,140
Housing Revenue Bonds, Westlake Apartments Phase II, Series 2002,
5.150%, 7/01/22 - FSA Insured (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
21,575 Total Housing/Multifamily 21,993,718
- -----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.7% (0.5% OF TOTAL INVESTMENTS)
30 Broward County Housing Finance Authority, Florida, Single Family 4/09 at 101.00 Aaa 30,143
Mortgage Revenue Refunding Bonds, Series 1999B, 5.250%, 4/01/31 - MBIA
Insured (Alternative Minimum Tax)
690 Escambia County Housing Finance Authority, Florida, Multi-County Single 4/08 at 102.00 Aaa 691,594
Family Mortgage Revenue Bonds, Series 1999, 5.200%, 4/01/32 - MBIA
Insured (Alternative Minimum Tax)
3,935 Florida Housing Finance Corporation, Homeowner Mortgage Revenue Bonds, 1/10 at 24.65 Aaa 845,238
Series 2000-4 , 0.000%, 7/01/30 - FSA Insured (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
4,655 Total Housing/Single Family 1,566,975
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 4.0% (2.5% OF TOTAL INVESTMENTS)
4,940 Florida State Board of Education, Full Faith and Credit, Public 6/11 at 101.00 AAA 5,131,227
Education Capital Outlay Bonds, Series 2001C, 5.125%, 6/01/29 - FGIC
Insured
1,895 Reedy Creek Improvement District, Orange and Osceola Counties, Florida, 6/15 at 100.00 AAA 1,971,918
General Obligation Bonds, Series 2005B, 5.000%, 6/01/25 - AMBAC
Insured
1,390 Venice, Florida, General Obligation Bonds, Series 2004, 5.000%, 2/01/24 2/14 at 100.00 AAA 1,441,583
- AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
8,225 Total Tax Obligation/General 8,544,728
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 68.5% (43.2% OF TOTAL INVESTMENTS)
3,820 Broward County School Board, Florida, Certificates of Participation, 7/13 at 100.00 AAA 4,076,704
Series 2003, 5.250%, 7/01/19 - MBIA Insured
3,350 Broward County School Board, Florida, Certificates of Participation, 7/17 at 100.00 AAA 3,640,445
Series 2007A, ROLS R-858-1, 7.472%, 7/01/32 - FGIC Insured (IF)
5,000 Broward County School Board, Florida, Certificates of Participation, 7/17 at 100.00 AAA 5,144,500
Series 2007A, 5.000%, 7/01/32 - FGIC Insured (UB)
1,500 Collier County, Florida, Capital Improvement Revenue Bonds, Series 2005, 10/14 at 100.00 AAA 1,561,740
5.000%, 10/01/23 - MBIA Insured
3,000 Collier County, Florida, Gas Tax Revenue Bonds, Series 2005, 5.000%, 6/15 at 100.00 AAA 3,135,540
6/01/22 - AMBAC Insured
1,555 DeSoto County, Florida, Capital Improvement Revenue Bonds, Series 2002, 4/12 at 101.00 AAA 1,656,650
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 1,042,760
1,000 5.125%, 8/01/31 - MBIA Insured 8/12 at 101.00 Aaa 1,038,060
2,500 Escambia County School Board, Florida, Certificates of Participation, 2/15 at 100.00 AAA 2,599,175
Series 2004, 5.000%, 2/01/22 - MBIA Insured
2,500 Flagler County School Board, Florida, Certificates of Participation, 8/15 at 100.00 AAA 2,561,950
Master Lease Revenue Program, Series 2005A, 5.000%, 8/01/30 - FSA
Insured
1,200 Flagler County, Florida, Capital Improvement Revenue Bonds, Series 2005, 10/15 at 100.00 AAA 1,238,340
5.000%, 10/01/30 - MBIA Insured
1,435 Florida Department of Environmental Protection, Florida Forever Revenue 7/13 at 101.00 AAA 1,520,325
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 3,526,688
3,345 5.375%, 11/01/30 - MBIA Insured 11/10 at 101.00 AAA 3,501,881
1,000 Florida Municipal Loan Council, Revenue Bonds, Series 2001A, 5.250%, 11/11 at 101.00 AAA 1,061,370
11/01/18 - MBIA Insured
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,230 Florida Ports Financing Commission, Revenue Bonds, State Transportation 10/09 at 101.00 AAA $ 2,305,017
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, Remarketed 6-1-2001, 12/11 at 101.00 Aaa 5,390,060
Series 1985E, 4.750%, 12/01/20 - FGIC Insured
1,080 Gulf Breeze, Florida, Local Government Loan Program, Remarketed 6-3-1996, 12/07 at 100.50 AAA 1,092,820
Series 1985B, 5.900%, 12/01/15 - FGIC Insured
1,020 Gulf Breeze, Florida, Local Government Loan Program, Remarketed 6-3-1996, 12/07 at 100.50 AAA 1,032,107
Series 1985C, 5.900%, 12/01/15 - FGIC Insured
1,500 Gulf Breeze, Florida, Local Government Loan Program, Remarketed 7-3-2000, 12/10 at 101.00 Aaa 1,575,945
Series 1985E, 5.750%, 12/01/20 - FGIC Insured
6,000 Hillsborough County School Board, Florida, Certificates of Participation, 7/13 at 100.00 AAA 6,125,640
Series 2003, 5.000%, 7/01/29 - MBIA Insured
2,000 Hillsborough County, Florida, Community Investment Tax Revenue Bonds, 11/13 at 101.00 AAA 2,085,700
Series 2004, 5.000%, 5/01/23 - AMBAC Insured
1,000 Hillsborough County, Florida, Revenue Refunding Bonds, Tampa Bay Arena, 10/15 at 100.00 AAA 1,040,050
Series 2005, 5.000%, 10/01/25 - FGIC Insured
2,595 Indian River County School Board, Florida, Certificates of Participation, 7/15 at 100.00 AAA 2,702,952
Series 2005, 5.000%, 7/01/22 - MBIA Insured
1,000 Indian Trace Development District, Florida, Water Management Special 5/15 at 102.00 Aaa 1,047,370
Benefit Assessment Bonds, Series 2005, 5.000%, 5/01/25 - MBIA Insured
1,500 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue Bonds, 10/13 at 100.00 AAA 1,606,440
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 1,327,245
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 1,817,106
2,000 5.000%, 10/01/19 - AMBAC Insured 10/12 at 100.00 AAA 2,100,700
1,230 Lee County, Florida, Local Option Gas Tax Revenue Bonds, Series 2004, 10/14 at 100.00 Aaa 1,296,113
5.000%, 10/01/20 - FGIC Insured
2,000 Miami-Dade County School Board, Florida, Certificates of Participation, 11/16 at 100.00 AAA 2,056,180
Series 2006B, 5.000%, 11/01/31 - AMBAC Insured
18,000 Miami-Dade County, Florida, Subordinate Special Obligation Bonds, Series 4/08 at 49.54 AAA 8,750,699
1997A, 0.000%, 10/01/21 - MBIA Insured
1,000 Orange County School Board, Florida, Certificates of Participation, 8/16 at 100.00 AAA 1,028,840
Series 2006A, 5.000%, 8/01/30 - FGIC Insured
1,000 Orange County School Board, Florida, Certificates of Participation, 8/17 at 100.00 AAA 1,037,840
Series 2007A, 5.000%, 8/01/27 - FGIC Insured
3,180 Orange County, Florida, Sales Tax Revenue Bonds, Series 2002B, 5.125%, 1/13 at 100.00 AAA 3,358,239
1/01/19 - FGIC Insured
2,500 Orange County, Florida, Tourist Development Tax Revenue Bonds, Series 10/16 at 100.00 AAA 2,573,300
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 2,630,200
5,500 5.000%, 4/01/23 - MBIA Insured 4/14 at 100.00 Aaa 5,718,405
Palm Beach County School Board, Florida, Certificates of Participation,
Residual Trust 1020:
2,625 7.825%, 8/01/26 - MBIA Insured (IF) 8/17 at 100.00 AAA 2,926,035
1,000 7.826%, 8/01/27 - MBIA Insured (IF) 8/17 at 100.00 AAA 1,114,680
2,150 Palm Beach County School Board, Florida, Certificates of Participation, 8/14 at 100.00 AAA 2,222,584
Series 2004A, 5.000%, 8/01/24 - FGIC Insured
29
NFL
Nuveen Insured Florida Premium Income Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 5,340 Palm Beach County, Florida, Administrative Complex Revenue Refunding No Opt. Call AAA $ 5,526,686
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 2,527,975
4,000 5.375%, 6/01/10 - FGIC Insured No Opt. Call AAA 4,185,080
1,300 Plantation, Florida, Non-Ad Valorem Revenue Refunding and Improvement 8/13 at 100.00 Aaa 1,370,291
Bonds, Series 2003, 5.000%, 8/15/21 - FSA Insured
4,260 St. Lucie County School Board, Florida, Certificates of Participation, 7/14 at 100.00 AAA 4,402,327
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 1,493,965
1,475 5.125%, 10/01/20 - FSA Insured 10/13 at 100.00 Aaa 1,568,397
1,555 5.125%, 10/01/21 - FSA Insured 10/13 at 100.00 Aaa 1,653,463
1,245 Tamarac, Florida, Sales Tax Revenue Bonds, Series 2002, 5.000%, 4/01/22 4/12 at 100.00 AAA 1,293,879
- FGIC Insured
4,275 Volusia County School Board, Florida, Certificates of Participation, 8/15 at 100.00 Aaa 4,437,365
Series 2005B, 5.000%, 8/01/24 - FSA Insured
2,000 Volusia County, Florida, Gas Tax Revenue Bonds, Series 2004, 5.000%, 10/14 at 100.00 AAA 2,098,660
10/01/21 - FSA Insured
12,000 Volusia County, Florida, School Board Certificates of Participation, 8/17 at 100.00 Aaa 12,347,280
Series 2007, 5.000%, 8/01/32 - FSA Insured (UB)
1,785 Volusia County, Florida, Tax Revenue Bonds, Tourist Development, Series 12/14 at 100.00 Aaa 1,856,668
2004, 5.000%, 12/01/24 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
151,530 Total Tax Obligation/Limited 148,030,431
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 16.9% (10.7% OF TOTAL INVESTMENTS)
9,000 Broward County, Florida, Airport System Revenue Bonds, Series 2001-J1, 10/11 at 101.00 AAA 9,222,659
5.250%, 10/01/26 - AMBAC Insured (Alternative Minimum Tax)
2,150 Broward County, Florida, Airport System Revenue Bonds, Series 2004L, 10/14 at 100.00 AAA 2,228,067
5.000%, 10/01/23 - AMBAC Insured
1,100 Dade County, Florida, Seaport Revenue Refunding Bonds, Series 1995, 4/08 at 100.00 AAA 1,101,947
5.750%, 10/01/15 - MBIA Insured
2,000 Greater Orlando Aviation Authority, Florida, Airport Facilities Revenue 10/13 at 100.00 AAA 2,095,800
Refunding Bonds, Series 2003A, 5.000%, 10/01/17 - FSA Insured
15,025 Lee County, Florida, Airport Revenue Bonds, Series 2000A, 6.000%, 10/10 at 101.00 AAA 15,945,727
10/01/32 - FSA Insured (Alternative Minimum Tax)
5,615 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International 10/12 at 100.00 AAA 6,004,232
Airport, Series 2002, 5.750%, 10/01/19 - FGIC Insured
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
34,890 Total Transportation 36,598,432
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 16.9% (10.6% OF TOTAL INVESTMENTS) (4)
5,325 Escambia County Housing Finance Authority, Florida, Dormitory Revenue 6/09 at 101.00 AAA 5,564,519
Bonds, University of West Florida Foundation Inc., Series 1999, 5.750%,
6/01/31 (Pre-refunded 6/01/09) - MBIA Insured
3,945 Florida Governmental Utility Authority, Utility System Revenue Bonds, 10/13 at 100.00 AAA 4,244,465
Citrus Project, Series 2003, 5.000%, 10/01/23 (Pre-refunded 10/01/13)
- AMBAC Insured
Florida Housing Finance Corporation, Housing Revenue Bonds, Augustine
Club Apartments, Series 2000D-1:
1,500 5.500%, 10/01/20 (Pre-refunded 10/01/10) - MBIA Insured 10/10 at 102.00 Aaa 1,611,510
4,750 5.750%, 10/01/30 (Pre-refunded 10/01/10) - MBIA Insured 10/10 at 102.00 Aaa 5,135,795
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 10,000 Port St. Lucie, Florida, Utility System Revenue Bonds, Series 2001, 9/11 at 34.97 AAA $ 3,041,900
0.000%, 9/01/29 (Pre-refunded 9/01/11) - MBIA Insured
1,830 Port St. Lucie, Florida, Utility System Revenue Bonds, Series 2003, 9/13 at 100.00 AAA 1,967,122
5.000%, 9/01/21 (Pre-refunded 9/01/13) - MBIA Insured
5,715 Seminole County, Florida, Water and Sewer Revenue Refunding and No Opt. Call AAA 6,593,052
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 5,454,150
1,200 5.500%, 10/01/21 - FGIC Insured (ETM) No Opt. Call AAA 1,342,224
1,500 Tampa, Florida, Healthcare System Revenue Bonds, Allegany Health System 12/07 at 100.00 AAA 1,509,840
- St. Joseph's Hospital, Series 1993, 5.125%, 12/01/23 - MBIA Insured
(ETM)
- ------------------------------------------------------------------------------------------------------------------------------------
40,765 Total U.S. Guaranteed 36,464,577
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.2% (4.5% OF TOTAL INVESTMENTS)
3,000 Leesburg, Florida, Utility Revenue Bonds, Series 2007, 5.000%, 10/01/37 10/17 at 100.00 AAA 3,090,960
- MBIA Insured
8,000 Palm Beach County Solid Waste Authority, Florida, Revenue Bonds, Series No Opt. Call AAA 6,103,680
2002B, 0.000%, 10/01/14 - AMBAC Insured
3,525 Palm Beach County Solid Waste Authority, Florida, Revenue Refunding No Opt. Call AAA 3,685,881
Bonds, Series 1997A, 6.000%, 10/01/09 - AMBAC Insured
2,500 Tallahassee, Florida, Energy System Revenue Bonds, Series 2005, 5.000%, 10/15 at 100.00 AAA 2,578,175
10/01/29 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
17,025 Total Utilities 15,458,696
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 25.8% (16.2% OF TOTAL INVESTMENTS)
1,250 Bay County, Florida, Water System Revenue Bonds, Series 2005, 5.000%, 9/15 at 100.00 Aaa 1,304,638
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 5,273,600
4,500 5.000%, 10/01/24 - MBIA Insured 10/13 at 100.00 AAA 4,693,185
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 982,800
475 5.250%, 10/01/18 - AMBAC Insured 10/13 at 100.00 AAA 508,706
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 1,334,275
1,095 5.000%, 10/01/23 - MBIA Insured 10/13 at 100.00 AAA 1,143,936
1,225 5.000%, 10/01/24 - MBIA Insured 10/13 at 100.00 AAA 1,277,589
1,000 Florida Governmental Utility Authority, Utility System Revenue Bonds, 7/09 at 101.00 Aaa 1,015,820
Golden Gate Project, Series 1999, 5.000%, 7/01/29 - AMBAC Insured
8,000 Indian River County, Florida, Water and Sewer Revenue Bonds, Series 9/08 at 102.00 AAA 8,250,879
1993A, 5.250%, 9/01/24 - FGIC Insured
1,000 JEA, Florida, Water and Sewerage System Revenue Bonds, Series 2004A, 10/13 at 100.00 AAA 1,066,840
5.000%, 10/01/14 - FGIC Insured
1,500 JEA, Florida, Water and Sewerage System Revenue Bonds, Series 2007B, 10/14 at 100.00 AAA 1,559,010
5.000%, 10/01/24 - MBIA Insured
1,450 Jupiter, Florida, Water Revenue Bonds, Series 2003, 5.000%, 10/01/22 - 10/13 at 100.00 AAA 1,519,992
AMBAC Insured
2,000 Manatee County, Florida, Public Utilities Revenue Bonds, Series 2003, 10/13 at 100.00 Aaa 2,126,640
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 1,458,000
1,000 5.250%, 10/01/18 - MBIA Insured 10/13 at 100.00 AAA 1,070,960
31
NFL
Nuveen Insured Florida Premium Income Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,750 Palm Bay, Florida, Utility System Revenue Bonds, Palm Bay Utility 10/13 at 100.00 AAA $ 1,846,530
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 1,068,780
500 5.250%, 10/01/20 - MBIA Insured 10/13 at 100.00 AAA 534,390
500 5.250%, 10/01/21 - MBIA Insured 10/13 at 100.00 AAA 534,390
1,170 Polk County, Florida, Utility System Revenue Bonds, Series 2004A, 10/14 at 100.00 AAA 1,216,028
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 1,266,327
1,980 5.250%, 5/01/17 - MBIA Insured 5/12 at 100.00 AAA 2,097,731
1,000 Port St. Lucie, Florida, Utility System Revenue Bonds, Series 2004, 9/14 at 100.00 Aaa 1,053,290
5.000%, 9/01/21 - MBIA Insured
Sebring, Florida, Water and Wastewater Revenue Refunding Bonds,
1,360 Series 2002: 5.250%, 1/01/17 - FGIC Insured 1/13 at 100.00 AAA 1,456,261
770 5.250%, 1/01/18 - FGIC Insured 1/13 at 100.00 AAA 818,364
500 5.250%, 1/01/20 - FGIC Insured 1/13 at 100.00 AAA 531,405
3,530 Seminole County, Florida, Water and Sewer Revenue Refunding and No Opt. Call AAA 4,057,806
Improvement Bonds, Series 1992, 6.000%, 10/01/19 - MBIA Insured
1,300 Sunrise, Florida, Utility System Revenue Refunding Bonds, Series 1996, 4/08 at 101.00 AAA 1,315,327
5.800%, 10/01/11 - AMBAC Insured
2,000 Village Center Community Development District, Florida, Utility Revenue 10/13 at 101.00 AAA 2,126,740
Bonds, Series 2003, 5.250%, 10/01/23 - MBIA Insured
1,100 Wauchula, Florida, Utility Revenue Bonds, Series 2001A, 5.000%, 10/11 at 101.00 AAA 1,133,023
10/01/31 - FSA Insured
- -----------------------------------------------------------------------------------------------------------------------------------
52,655 Total Water and Sewer 55,643,262
- -----------------------------------------------------------------------------------------------------------------------------------
$ 349,090 Total Investments (cost $330,381,302) - 158.8% 342,877,048
===============--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (8.4)% (18,160,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.0% 2,259,313
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.4)% (111,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 215,976,361
====================================================================================================================
32
FORWARD SWAPS OUTSTANDING AT OCTOBER 31, 2007:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION)
- ----------------------------------------------------------------------------------------------------------------------------------
Royal Bank of Canada $1,500,000 Pay SIFM 4.335% Quarterly 8/06/08 8/06/37 $47,296
==================================================================================================================================
SIFM - The daily arithmetic average of the weekly SIFM (Securities Industry and
Financial Markets) Municipal Swap Index.
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.
The Fund may invest in "zero coupon" securities. A zero coupon security
does not pay a regular interest coupon to its holders during the life of
the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the
security at issuance and the par value of the security at maturity and is
effectively paid at maturity. Such securities are included in the
Portfolio of Investments with a 0.000% coupon rate in their description.
The market prices of zero coupon securities generally are more volatile
than the market prices of securities that pay interest periodically.
(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: 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: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's 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.
(5) Effective date represents the date on which both the Fund and counterparty
commence interest payment accruals on each forward swap contract.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33
NWF
Nuveen Insured Florida Tax-Free Advantage Municipal Fund
Portfolio of INVESTMENTS
October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.0% (1.3% OF TOTAL INVESTMENTS)
$ 1,685 Golden State Tobacco Securitization Corporation, California, Enhanced 6/22 at 100.00 BBB $ 1,084,314
Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 0.000%, 6/01/37
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 14.9% (9.8% OF TOTAL INVESTMENTS)
2,240 FSU Financial Assistance Inc., Florida, General Revenue Bonds, No Opt. Call AAA 2,409,120
Educational and Athletic Facilities Improvements, Series 2004,
5.000%, 10/01/14 - AMBAC Insured
1,985 North Miami, Florida, Educational Facilities Revenue Refunding Bonds, 4/13 at 100.00 AAA 2,060,668
Johnson and Wales University, Series 2003A, 5.000%,
4/01/19 - XLCA Insured
1,500 Volusia County Educational Facilities Authority, Florida, Revenue Bonds, 10/15 at 100.00 AA 1,475,550
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 1,015,100
1,250 5.200%, 10/15/33 - RAAI Insured 10/13 at 100.00 AA 1,256,450
- ------------------------------------------------------------------------------------------------------------------------------------
7,975 Total Education and Civic Organizations 8,216,888
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 1.8% (1.2% OF TOTAL INVESTMENTS)
1,000 Halifax Hospital Medical Center, Florida, Revenue Bonds, Series 2006, 6/16 at 100.00 BBB+ 1,019,680
5.250%, 6/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.2% (0.8% OF TOTAL INVESTMENTS)
645 Florida Housing Finance Agency, GNMA Collateralized Home Ownership No Opt. Call AAA 680,804
Revenue Refunding Bonds, Series 1987G-1, 8.595%, 11/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 67.1% (44.4% OF TOTAL INVESTMENTS)
900 Bartram Springs Community Development District, Duval County, Florida, 5/16 at 100.00 N/R 716,976
Special Assessment Bonds, Series 2006, 4.750%, 5/01/34
400 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AAA 416,464
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 1,072,750
Series 2002, 5.250%, 10/01/17 - AMBAC Insured
1,525 Fernandina Beach, Florida, Utility Acquisition and Improvement 9/13 at 100.00 AAA 1,592,832
Revenue Bonds, Series 2003, 5.000%, 9/01/23 - FGIC Insured
500 Flagler County, Florida, Capital Improvement Revenue Bonds, 10/15 at 100.00 AAA 515,975
Series 2005, 5.000%, 10/01/30 - MBIA Insured
3,000 Florida Municipal Loan Council, Revenue Bonds, Series 2003B, 12/13 at 100.00 AAA 3,081,360
5.000%, 12/01/28 - MBIA Insured
1,500 Hillsborough County School Board, Florida, Certificates of 7/13 at 100.00 AAA 1,531,410
Participation, Series 2003, 5.000%, 7/01/29 - MBIA Insured
2,270 Jacksonville, Florida, Local Government Sales Tax Revenue Refunding 10/12 at 100.00 AAA 2,432,577
and Improvement Bonds, Series 2002, 5.375%, 10/01/18 - FGIC Insured
2,265 Lakeland, Florida, Utility Tax Revenue Bonds, Series 2003B, 5.000%, 10/12 at 100.00 AAA 2,379,043
10/01/20 - AMBAC Insured
1,330 Mira Lago West Community Development District, Florida, Capital 5/15 at 101.00 N/R 1,150,038
Improvement Revenue Bonds, Series 2005, 5.375%, 5/01/36
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,000 Orange County, Florida, Sales Tax Revenue Bonds, Series 2002A, 5.125%, 1/13 at 100.00 AAA $ 2,128,940
1/01/17 - FGIC Insured
1,500 Orange County, Florida, Sales Tax Revenue Bonds, Series 2002B, 5.125%, 1/13 at 100.00 AAA 1,555,290
1/01/32 - FGIC Insured
3,335 Palm Bay, Florida, Local Optional Gas Tax Revenue Bonds, Series 2004, 10/14 at 100.00 AAA 3,576,287
5.250%, 10/01/20 - MBIA Insured
3,670 Palm Beach County School Board, Florida, Certificates of Participation, 8/12 at 100.00 AAA 3,741,932
Series 2002D, 5.000%, 8/01/28 - FSA Insured
2,000 Palm Beach Gardens, Florida, Special Obligation Revenue Bonds, 2/13 at 100.00 AAA 2,103,420
Series 2004, 5.000%, 5/01/20 - AMBAC Insured
2,115 Port St. Lucie, Florida, Sales Tax Revenue Bonds, Series 2003, 5.000%, 9/13 at 100.00 AAA 2,204,274
9/01/23 - MBIA Insured
1,730 St. John's County, Florida, Sales Tax Revenue Bonds, Series 2004A, 10/14 at 100.00 AAA 1,795,965
5.000%, 10/01/24 - AMBAC Insured
4,000 St. Lucie County School Board, Florida, Certificates of Participation, 7/14 at 100.00 AAA 4,133,640
Master Lease Program, Series 2004A, 5.000%, 7/01/24 - FSA Insured
1,000 Vista Lakes Community Development District, Florida, Capital 5/17 at 100.00 AA 986,990
Improvement Revenue Bonds, Series 2007A2, 5.000%,
5/01/34 - RAAI Insured
- ------------------------------------------------------------------------------------------------------------------------------------
36,040 Total Tax Obligation/Limited 37,116,163
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.0% (7.3% OF TOTAL INVESTMENTS)
2,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 2,040,360
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 2,205,830
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 1,817,573
Series 2004B, 5.000%, 10/01/22 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
5,835 Total Transportation 6,063,763
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 35.0% (23.2% OF TOTAL INVESTMENTS) (4)
2,660 Grand Prairie Independent School District, Dallas County, Texas, 2/13 at 100.00 AAA 2,890,063
General Obligation Bonds, Series 2003, 5.375%, 2/15/26
(Pre-refunded 2/15/13) - FSA Insured
3,500 Highlands County Health Facilities Authority, Florida, Hospital 11/13 at 100.00 A+ (4) 3,909,535
Revenue Bonds, Adventist Health System/Sunbelt Obligated Group,
Series 2003D, 5.875%, 11/15/29 (Pre-refunded 11/15/13)
3,370 Osceola County School Board, Florida, Certificates of Participation, 6/12 at 101.00 Aaa 3,622,009
Series 2002A, 5.125%, 6/01/20 (Pre-refunded 6/01/12) - AMBAC Insured
1,950 Palm Beach County School Board, Florida, Certificates of 8/12 at 100.00 AAA 2,094,066
Participation, Series 2002D, 5.250%, 8/01/20
(Pre-refunded 8/01/12) - FSA Insured
2,800 Pinellas County Health Facilities Authority, Florida, Revenue Bonds, 5/13 at 100.00 Aa3 (4) 3,097,584
Baycare Health System, Series 2003, 5.750%, 11/15/27
(Pre-refunded 5/15/13)
2,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 2,159,760
Series 2002II, 5.125%, 7/01/26 (Pre-refunded 7/01/12) - FSA Insured
1,500 South Miami Health Facilities Authority, Florida, Hospital Revenue 2/13 at 100.00 Aaa 1,612,680
Bonds, Baptist Health Systems of South Florida, Series 2003,
5.200%, 11/15/28 (Pre-refunded 2/01/13)
- ------------------------------------------------------------------------------------------------------------------------------------
17,780 Total U.S. Guaranteed 19,385,697
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 0.9% (0.7% OF TOTAL INVESTMENTS)
500 Tallahassee, Florida, Energy System Revenue Bonds, Series 2005, 10/15 at 100.00 AAA 515,635
5.000%, 10/01/29 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
35
NWF
Nuveen Insured Florida Tax-Free Advantage Municipal Fund (continued)
Portfolio of INVESTMENTS
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 17.1% (11.3% OF TOTAL INVESTMENTS)
$ 1,000 Bay County, Florida, Water System Revenue Bonds, Series 2005, 5.000%, 9/15 at 100.00 Aaa $ 1,041,690
9/01/25 - AMBAC Insured
3,000 Marco Island, Florida, Water Utility System Revenue Bonds, Series 2003, 10/13 at 100.00 AAA 3,106,830
5.000%, 10/01/27 - MBIA Insured
2,000 Miami-Dade County, Florida, Water and Sewer System Revenue Bonds, 10/09 at 101.00 AAA 2,033,680
Series 1999A, 5.000%, 10/01/29 - FGIC Insured
500 North Port, Florida, Utility System Revenue Bonds, Series 2000, 5.000%, 10/10 at 101.00 Aaa 518,495
10/01/25 - FSA Insured
1,095 Palm Bay, Florida, Utility System Revenue Bonds, Series 2004, 5.250%, 10/14 at 100.00 AAA 1,176,961
10/01/20 - MBIA Insured
1,500 Port St. Lucie, Florida, Stormwater Utility System Revenue Refunding 5/12 at 100.00 AAA 1,561,215
Bonds, Series 2002, 5.000%, 5/01/23 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
9,095 Total Water and Sewer 9,438,871
- ------------------------------------------------------------------------------------------------------------------------------------
$ 80,555 Total Investments (cost $81,498,547) - 151.0% 83,521,815
===============---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 798,271
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.4)% (29,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 55,320,086
=====================================================================================================================
FORWARD SWAPS OUTSTANDING AT OCTOBER 31, 2007:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION)
- ----------------------------------------------------------------------------------------------------------------------------------
Royal Bank of Canada $1,400,000 Pay SIFM 4.335% Quarterly 8/06/08 8/06/37 $44,143
===================================================================================================================================
SIFM - The daily arithmetic average of the weekly SIFM (Securities Industry and
Financial Markets) 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) either backed by an escrow or trust containing sufficient
U.S. Government or U.S. Government agency securities (also ensuring the
timely payment of principal and interest), or (ii) rated, at the time of
investment, within the four highest grades (Baa or BBB or better by
Moody's, Standard & Poor's or Fitch) or unrated but judged to be of
comparable quality by the Adviser.
The Fund may invest in "zero coupon" securities. A zero coupon security
does not pay a regular interest coupon to its holders during the life of
the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the
security at issuance and the par value of the security at maturity and is
effectively paid at maturity. Such securities are included in the
Portfolio of Investments with a 0.000% coupon rate in their description.
The market prices of zero coupon securities generally are more volatile
than the market prices of securities that pay interest periodically.
(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: 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: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's 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.
36
| Statement of
| ASSETS & LIABILITIES
October 31, 2007
(Unaudited)
FLORIDA FLORIDA INSURED FLORIDA INSURED FLORIDA
INVESTMENT QUALITY QUALITY INCOME PREMIUM INCOME TAX-FREE ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $393,904,542, $359,134,971,
$330,381,302 and $81,498,547, respectively) $ 408,680,285 $ 367,065,939 $ 342,877,048 $ 83,521,815
Cash 1,332,148 42,464 1,062,400 22,402
Unrealized appreciation on forward swaps -- -- 47,296 44,143
Receivables:
Interest 4,529,341 3,975,897 3,230,676 985,410
Investments sold 1,823,357 -- 3,051,043 --
Other assets 41,980 31,410 42,291 2,481
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 416,407,111 371,115,710 350,310,754 84,576,251
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Floating rate obligations 39,500,000 41,110,000 18,160,000 --
Unrealized depreciation on forward swaps 364,596 -- -- --
Payable for investments purchased 1,890,166 -- 4,121,832 --
Accrued expenses:
Management fees 196,845 173,829 172,659 22,423
Other 86,323 80,019 79,160 24,922
Common share dividends payable 803,348 704,688 737,007 192,139
Preferred share dividends payable 19,222 35,332 63,735 16,681
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 42,860,500 42,103,868 23,334,393 256,165
- ------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 132,000,000 117,000,000 111,000,000 29,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 241,546,611 $ 212,011,842 $ 215,976,361 $ 55,320,086
====================================================================================================================================
Common shares outstanding 16,389,802 14,171,195 14,233,196 3,882,373
====================================================================================================================================
Net asset value per Common share outstanding (net assets
applicable to Common shares, divided by Common shares
outstanding) $14.74 $14.96 $15.17 $14.25
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 163,898 $ 141,712 $ 142,332 $ 38,824
Paid-in surplus 229,131,694 204,346,617 202,176,785 54,746,905
Undistributed (Over-distribution of) net investment income (513,248) (553,405) (14,890) (130,985)
Accumulated net realized gain (loss) from investments
and derivative transactions (1,646,880) 145,950 1,129,092 (1,402,069)
Net unrealized appreciation (depreciation) of investments
and derivative transactions 14,411,147 7,930,968 12,543,042 2,067,411
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 241,546,611 $ 212,011,842 $ 215,976,361 $ 55,320,086
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
37
| Statement of
| OPERATIONS
Six Months Ended October 31, 2007
(Unaudited)
FLORIDA FLORIDA INSURED FLORIDA INSURED FLORIDA
INVESTMENT QUALITY QUALITY INCOME PREMIUM INCOME TAX-FREE ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $10,289,158 $ 8,845,132 $ 8,580,642 $ 1,968,283
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,171,502 1,032,334 1,024,702 268,150
Preferred shares - auction fees 166,356 147,452 139,890 36,548
Preferred shares - dividend disbursing agent fees 10,082 15,123 10,082 5,041
Shareholders' servicing agent fees and expenses 9,443 6,963 7,004 357
Interest expense on floating rate obligations 899,492 812,709 487,062 --
Custodian's fees and expenses 39,648 33,047 33,446 14,051
Trustees' fees and expenses 4,805 4,131 4,056 1,149
Professional fees 13,172 11,500 10,937 5,536
Shareholders' reports - printing and mailing expenses 17,512 15,281 17,219 5,286
Stock exchange listing fees 4,857 4,857 4,868 166
Investor relations expense 15,938 13,830 13,852 3,881
Other expenses 10,732 9,807 10,981 6,977
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense
reimbursement 2,363,539 2,107,034 1,764,099 347,142
Custodian fee credit (6,691) (6,991) (6,780) (5,871)
Expense reimbursement -- -- -- (135,438)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 2,356,848 2,100,043 1,757,319 205,833
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 7,932,310 6,745,089 6,823,323 1,762,450
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (484,102) 169,125 193,156 32,086
Forward swaps 287,000 -- 34,700 13,880
Change in net unrealized appreciation (depreciation) of:
Investments (6,764,647) (5,682,015) (3,927,852) (1,300,771)
Forward swaps (225,596) -- 47,296 44,143
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (7,187,345) (5,512,890) (3,652,700) (1,210,662)
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (2,405,917) (2,199,305) (2,058,526) (519,499)
From accumulated net realized gains -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (2,405,917) (2,199,305) (2,058,526) (519,499)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $(1,660,952) $ (967,106) $ 1,112,097 $ 32,289
====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
38
| Statement of
| CHANGES in NET ASSETS (Unaudited)
FLORIDA INVESTMENT QUALITY (NQF) FLORIDA QUALITY INCOME (NUF)
-------------------------------------------- ---------------------------------------------
SIX MONTHS TEN MONTHS SIX MONTHS TEN MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
10/31/07 4/30/07 6/30/06 10/31/07 4/30/07 6/30/06
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 7,932,310 $ 13,103,664 $ 15,600,126 $ 6,745,089 $ 11,152,781 $ 13,225,877
Net realized gain (loss) from:
Investments (484,102) 674,291 501,480 169,125 273,077 859,292
Forward swaps 287,000 -- -- -- 25,000 --
Change in net unrealized
appreciation (depreciation) of:
Investments (6,764,647) 7,272,314 (14,732,365) (5,682,015) 6,745,764 (12,303,508)
Forward swaps (225,596) (139,000) -- -- -- --
Distributions to Preferred
shareholders:
From net investment income (2,405,917) (3,844,551) (3,430,679) (2,199,305) (3,401,825) (3,035,981)
From accumulated net realized gains -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (1,660,952) 17,066,718 (2,061,438) (967,106) 14,794,797 (1,254,320)
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (5,644,591) (9,504,640) (13,251,988) (4,705,591) (7,852,127) (11,076,970)
From accumulated net realized gains -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (5,644,591) (9,504,640) (13,251,988) (4,705,591) (7,852,127) (11,076,970)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Repurchased (2,623,037) -- -- (1,762,160) -- --
Net proceeds from shares
issued to shareholders due
to reinvestment of distributions -- -- 155,702 -- -- 42,933
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions (2,623,037) -- 155,702 (1,762,160) -- 42,933
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (9,928,580) 7,562,078 (15,157,724) (7,434,857) 6,942,670 (12,288,357)
Net assets applicable to Common shares
at the beginning of period 251,475,191 243,913,113 259,070,837 219,446,699 212,504,029 224,792,386
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $241,546,611 $251,475,191 $243,913,113 $212,011,842 $219,446,699 $212,504,029
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at
the end of period $ (513,248) $ (395,050) $ (149,523) $ (553,405) $ (393,598) $ (292,353)
====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
39
| Statement of
| CHANGES in NET ASSETS (continued) (Unaudited)
INSURED FLORIDA PREMIUM INCOME (NFL) INSURED FLORIDA TAX-FREE ADVANTAGE (NWF)
-------------------------------------------- ---------------------------------------------
SIX MONTHS TEN MONTHS SIX MONTHS TEN MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
10/31/07 4/30/07 6/30/06 10/31/07 4/30/07 6/30/06
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 6,823,323 $ 11,399,002 $ 13,821,853 $ 1,762,450 $ 2,926,874 $ 3,506,557
Net realized gain (loss) from:
Investments 193,156 1,215,018 938,575 32,086 2,259 (4,419)
Forward swaps 34,700 -- -- 13,880 53,678 137,974
Change in net unrealized appreciation
(depreciation) of:
Investments (3,927,852) 4,061,415 (13,926,918) (1,300,771) 2,125,216 (3,311,864)
Forward swaps 47,296 -- -- 44,143 (228,722) 418,597
Distributions to Preferred shareholders:
From net investment income (2,058,526) (3,147,762) (2,768,590) (519,499) (819,179) (728,881)
From accumulated net realized gains -- (76,901) (281,644) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 1,112,097 13,450,772 (2,216,724) 32,289 4,060,126 17,964
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (4,987,104) (8,995,875) (11,855,911) (1,257,892) (2,139,189) (2,694,347)
From accumulated net realized gains -- (300,815) (2,071,689) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (4,987,104) (9,296,690) (13,927,600) (1,257,892) (2,139,189) (2,694,347)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Repurchased (2,206,466) -- -- -- -- --
Net proceeds from shares
issued to shareholders due
to reinvestment of distributions -- -- 268,943 -- -- 5,148
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions (2,206,466) -- 268,943 -- -- 5,148
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (6,081,473) 4,154,082 (15,875,381) (1,225,603) 1,920,937 (2,671,235)
Net assets applicable to Common shares
at the beginning of period 222,057,834 217,903,752 233,779,133 56,545,689 54,624,752 57,295,987
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $215,976,361 $222,057,834 $217,903,752 $ 55,320,086 $ 56,545,689 $ 54,624,752
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at
the end of period $ (14,890) $ 207,417 $ 952,052 $ (130,985) $ (116,044) $ (84,550)
====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
40
| Statement of
| CASH FLOWS
Six Months Ended
October 31, 2007 (Unaudited)
FLORIDA FLORIDA INSURED FLORIDA
INVESTMENT QUALITY QUALITY INCOME PREMIUM INCOME
(NQF) (NUF) (NFL)
- ------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES
FROM OPERATIONS $ (1,660,952) $ (967,106) $ 1,112,097
Adjustments to reconcile the net increase (decrease) in net assets applicable
to Common shares from operations to net cash provided by (used in)
operating activities:
Purchases of investments (26,245,882) (11,650,634) (9,521,452)
Proceeds from sales and maturities of investments 43,626,270 12,991,739 11,224,750
Proceeds from (Purchases of) short-term investments, net (300,000) -- --
Proceeds from sales of forward swaps 287,000 -- 34,700
Amortization/(Accretion) of premiums and discounts, net 296,628 400,693 (211,314)
(Increase) Decrease in receivable for interest (5,676) 865 (21,711)
(Increase) Decrease in receivable for investments sold (1,708,357) 35,000 (3,051,043)
(Increase) Decrease in other assets (1,085) 14,584 (10,453)
Increase (Decrease) in payable for investments purchased 622,003 (1,268,163) 4,121,832
Increase (Decrease) in accrued management fees 1,698 2,174 2,646
Increase (Decrease) in accrued other liabilities (17,867) (6,568) 9,663
Increase (Decrease) in Preferred shares dividends payable (35,005) (17,364) 14,170
Net realized (gain) loss from investments 484,102 (169,125) (193,156)
Net realized (gain) loss from forward swaps (287,000) -- (34,700)
Change in net unrealized (appreciation) depreciation of investments 6,764,647 5,682,015 3,927,852
Change in net unrealized (appreciation) depreciation of forward swaps 225,596 -- (47,296)
- ------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 20,046,120 5,048,110 7,356,585
- ------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in floating rate obligations (13,335,000) -- 170,000
Cash distributions paid to Common shareholders (4,841,243) (4,000,903) (4,250,097)
Cost of Common shares repurchases (2,623,037) (1,762,160) (2,206,466)
- ------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (20,799,280) 5,763,063 (6,286,563)
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH 1,246,840 (714,953) 1,070,022
Cash at the beginning of period 85,308 757,417 (7,622)
- ------------------------------------------------------------------------------------------------------------------------------------
CASH AT THE END OF PERIOD $ 1,332,148 $ 42,464 $ 1,062,400
====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
41
| Notes to
| FINANCIAL STATEMENTS (Unaudited)
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.
In February 2007, the Board of Trustees of the Funds approved a change in the
Funds' fiscal year end from June 30 to April 30.
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 may establish 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 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 or derivative transaction 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/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 October 31, 2007, 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
42
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. Net realized capital gains and ordinary
income distributions paid by the Funds are subject to federal taxation.
DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
PREFERRED SHARES
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one or more than one 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
================================================================================
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, Standard & Poor's or Fitch) or unrated but judged to be of
comparable quality by Nuveen Asset Management (the "Adviser"), a wholly owned
subsidiary of Nuveen Investments, Inc. ("Nuveen").
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) (Unaudited)
INVERSE FLOATING RATE SECURITIES
Each Fund may invest in inverse floating rate securities. An inverse floating
rate security is created by depositing a municipal bond, typically with a fixed
interest rate, into a special purpose trust created by a broker-dealer. In turn,
this trust (a) issues floating rate certificates, in face amounts equal to some
fraction of the deposited bond's par amount or market value, that typically pay
short-term tax-exempt interest rates to third parties, and (b) issues to a
long-term investor (such as one of the Funds) an inverse floating rate
certificate (sometimes referred to as an "inverse floater") that represents all
remaining or residual interest in the trust. The income received by the inverse
floater holder varies inversely with the short-term rate paid to the floating
rate certificates' holders, and in most circumstances the inverse floater holder
bears substantially all of the underlying bond's downside investment risk and
also benefits disproportionately from any potential appreciation of the
underlying bond's value. The price of an inverse floating rate security will be
more volatile than that of the underlying bond because the interest rate is
dependent on not only the fixed coupon rate of the underlying bond but also on
the short-term interest paid on the floating rate certificates, and because the
inverse floating rate security essentially bears the risk of loss of the greater
face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). A Fund may also enter into shortfall and
forbearance agreements (sometimes referred to as a "recourse trust" or "credit
recovery swap") with a broker-dealer by which a Fund agrees to reimburse the
broker-dealer, in certain circumstances, for the difference between the
liquidation value of the fixed-rate bond held by the trust and the liquidation
value of the floating rate certificates, as well as any shortfalls in interest
cash flows. The inverse floater held by a Fund gives the Fund the right (a) to
cause the holders of the floating rate certificates to tender their notes at
par, and (b) to have the broker transfer the fixed-rate bond held by the trust
to the Fund, thereby collapsing the trust. An investment in an
externally-deposited inverse floater is identified in the Portfolio of
Investments as an "Inverse floating rate investment". An investment in a
self-deposited inverse floater, recourse trust or credit recovery swap is
accounted for as a financing transaction in accordance with Statement of
Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities". In such
instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as an "Underlying bond of an inverse
floating rate trust", with the Fund accounting for the short-term floating rate
certificates issued by the trust as "Floating rate obligations" on the Statement
of Assets and Liabilities. In addition, the Fund reflects in Investment Income
the entire earnings of the underlying bond and accounts for the related interest
paid to the holders of the short-term floating rate certificates as "Interest
expense on floating rate obligations" in the Statement of Operations.
During the six months ended October 31, 2007, Florida Investment Quality (NQF),
Florida Quality Income (NUF) and Insured Florida Premium Income (NFL) invested
in externally deposited inverse floaters and/or self-deposited inverse floaters.
Insured Florida Tax-Free Advantage (NWF) did not invest in any such instruments
during the six months ended October 31, 2007.
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended October 31, 2007, were as follows:
INSURED
FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM
QUALITY INCOME INCOME
(NQF) (NUF) (NFL)
- --------------------------------------------------------------------------------
Average floating rate obligations $45,488,886 $41,110,000 $24,861,223
Average annual interest rate and fees 3.92% 3.92% 3.89%
================================================================================
44
FORWARD SWAP TRANSACTIONS
The Funds are authorized to invest in forward interest rate swap transactions.
Each Fund's use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed 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 the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
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 reduce 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.
CUSTODIAN FEE CREDIT
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which the Fund overdraws its account at the custodian bank.
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
On July 10, 2007, the Board of Trustees of Florida Investment Quality (NQF),
Florida Quality Income (NUF) and Insured Florida Premium Income (NFL) approved
an open-market share repurchase program, as part of a broad, ongoing effort
designed to support the market prices of the Funds' Common shares. Under the
terms of the program, each Fund may repurchase up to 10% of its outstanding
Common shares.
Transactions in Common shares were as follows:
FLORIDA FLORIDA
INVESTMENT QUALITY (NQF) QUALITY INCOME (NUF)
------------------------------------- -------------------------------------
SIX MONTHS TEN MONTHS SIX MONTHS TEN MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
10/31/07 4/30/07 6/30/06 10/31/07 4/30/07 6/30/06
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares:
Shares repurchased (197,700) -- -- (131,400) -- --
Shares issued to shareholders due
to reinvestment of distributions -- -- 9,854 -- -- 2,715
- ------------------------------------------------------------------------------------------------------------------------------------
Weighted average price per Common share repurchased $ 13.25 -- -- $ 13.39 -- --
Weighted average discount per Common share repurchased 9.40% -- -- 9.89% -- --
====================================================================================================================================
45
| Notes to
| FINANCIAL STATEMENTS (continued) (Unaudited)
INSURED FLORIDA INSURED FLORIDA
PREMIUM INCOME (NFL) TAX-FREE ADVANTAGE (NWF)
------------------------------------ --------------------------------------
SIX MONTHS TEN MONTHS SIX MONTHS TEN MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
10/31/07 4/30/07 6/30/06 10/31/07 4/30/07 6/30/06
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares:
Shares repurchased (160,200) -- -- -- -- --
Shares issued to shareholders due
to reinvestment of distributions -- -- 16,602 -- -- 339
- ------------------------------------------------------------------------------------------------------------------------------------
Weighted average price per Common share repurchased $ 13.75 -- -- -- -- --
Weighted average discount per Common share repurchased 8.36% -- -- -- -- --
====================================================================================================================================
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended October 31, 2007, were
as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ------------------------------------------------------------------------------------------------------------------------------------
Purchases $26,245,882 $11,650,634 $ 9,521,452 $1,828,924
Sales and maturities 43,626,270 12,991,739 11,224,750 566,980
====================================================================================================================================
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, timing differences in recognizing
certain gains and losses on investment transactions and the treatment of
investments in inverse floating rate transactions subject to SFAS No. 140. To
the extent that differences arise that are permanent in nature, such amounts are
reclassified within the capital accounts on the Statement of Assets and
Liabilities presented in the annual report, based on their federal tax basis
treatment; temporary differences do not require reclassification. Temporary and
permanent differences do not impact the net asset values of the Funds.
At October 31, 2007, 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 $354,050,806 $318,018,843 $312,033,260 $81,580,663
====================================================================================================================================
46
Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 2007, were as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ------------------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $17,499,941 $9,980,179 $13,931,305 $2,706,723
Depreciation (2,370,280) (2,042,915) (1,246,730) (765,571)
- ------------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $15,129,661 $7,937,264 $12,684,575 $1,941,152
====================================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at April 30, 2007, the Funds' last tax year end,
were as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ------------------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $282,408 $440,138 $851,071 $109,448
Undistributed net ordinary income ** -- -- -- --
Undistributed net long-term capital gains -- -- 998,461 --
====================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on April 2, 2007, paid on May 1, 2007.
** 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 ten months ended April 30,
2007, the Funds' last tax year end, and during the tax year ended June 30, 2006,
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
TEN MONTHS ENDED APRIL 30, 2007 (NQF) (NUF) (NFL) (NWF)
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $13,350,222 $11,250,793 $12,143,430 $2,962,418
Distributions from net ordinary income ** -- -- -- --
Distributions from net long-term capital gains -- -- 377,716 --
====================================================================================================================================
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
YEAR ENDED JUNE 30, 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 --
====================================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
47
| Notes to
| FINANCIAL STATEMENTS (continued) (Unaudited)
At April 30, 2007, the Funds' last tax year end, 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 1,449,778 23,175 97,429
2014 -- -- 236,625
2015 -- -- 194,032
- --------------------------------------------------------------------------------
Total $ 1,449,778 $23,175 $1,365,811
================================================================================
5. MANAGEMENT FEES 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 the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual Fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser.
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)
FLORIDA QUALITY INCOME (NUF)
INSURED FLORIDA PREMIUM INCOME (NFL)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS 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
===================================================================================================================================
48
INSURED FLORIDA TAX-FREE ADVANTAGE (NWF)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS 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
===================================================================================================================================
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 tables below.
As of October 31, 2007, the complex-level fee rate was .1828%.
Effective August 20, 2007, the complex-level fee schedule is as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
- -----------------------------------------------------------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
===================================================================================================================================
Prior to August 20, 2007, the complex-level fee schedule was as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
- -----------------------------------------------------------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1698
$125 billion .1617
$200 billion .1536
$250 billion .1509
$300 billion .1490
===================================================================================================================================
(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
preferred stock issued by or borrowings by the Nuveen funds) of
Nuveen-sponsored funds in the U.S.
49
| Notes to
| FINANCIAL STATEMENTS (continued) (Unaudited)
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Trustees who are affiliated with the
Adviser or to its 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.
AGREEMENT AND PLAN OF MERGER
On June 20, 2007, Nuveen Investments announced that it had entered into a
definitive Agreement and Plan of Merger ("Merger Agreement") with Windy City
Investments, Inc. ("Windy City"), a corporation formed by investors led by
Madison Dearborn Partners, LLC ("Madison Dearborn"), pursuant to which Windy
City would acquire Nuveen Investments. Madison Dearborn is a private equity
investment firm based in Chicago, Illinois. The merger was consummated on
November 13, 2007.
The consummation of the merger was deemed to be an "assignment" (as that term is
defined in the Investment Company Act of 1940) of the investment management
agreement between each Fund and the Adviser, and resulted in the automatic
termination of each Fund's agreement. The Board of Trustees of each Fund
considered and approved a new investment management agreement with the Adviser
at the same fee rate. The new ongoing agreement was approved by the shareholders
of each Fund and took effect on November 13, 2007.
The investors led by Madison Dearborn include an affiliate of Merrill Lynch. As
a result, Merrill Lynch is an indirect "affiliated person" (as that term is
defined in the Investment Company Act of 1940) of each Fund. Certain conflicts
of interest may arise as a result of such indirect affiliation. For example, the
Funds are generally prohibited from entering into principal transactions with
Merrill Lynch and its affiliates. The Adviser does not believe that any such
prohibitions or limitations as a result of Merrill Lynch's affiliation will
significantly impact the ability of the Funds to pursue their investment
objectives and policies.
50
6. NEW ACCOUNTING PRONOUNCEMENTS
FINANCIAL ACCOUNTING STANDARDS BOARD INTERPRETATION NO. 48
Effective October 31, 2007, the Funds adopted Financial Accounting Standards
Board Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" (FIN
48). FIN 48 provides guidance regarding 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 Funds' 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. Management of
the Funds has concluded that there are no significant uncertain tax positions
that require recognition in the Funds' financial statements. Consequently, the
adoption of FIN 48 had no impact on the net assets or results of operations of
the Funds.
FINANCIAL ACCOUNTING STANDARDS BOARD STATEMENT OF FINANCIAL ACCOUNTING STANDARDS
NO. 157
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007, and interim periods within those fiscal
years. The changes to current generally accepted accounting principles from the
application of this standard relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of October 31, 2007, management does not believe the adoption
of SFAS No. 157 will impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements included within the Statement of
Operations for the period.
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 December 3, 2007, to shareholders of record
on November 15, 2007, as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- --------------------------------------------------------------------------------
Dividend per share $.0540 $.0550 $.0575 $.0515
================================================================================
51
| Financial
| HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations
-------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
- -----------------------------------------------------------------------------------------------------------
FLORIDA INVESTMENT QUALITY (NQF)
- -----------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(c) $15.16 $ .48 $(.41) $(.15) $ -- $ (.08)
2007(b) 14.70 .79 .47 (.23) -- 1.03
Year Ended 6/30:
2006 15.63 .94 (.86) (.21) -- (.13)
2005 14.81 .96 .94 (.11) -- 1.79
2004 15.87 1.06 (.84) (.06) (.01) .15
2003 15.19 1.10 .76 (.07) (.01) 1.78
2002 14.76 1.13 .41 (.11) (.02) 1.41
FLORIDA QUALITY INCOME (NUF)
- -----------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(c) 15.34 .47 (.37) (.15) -- (.05)
2007(b) 14.86 .78 .49 (.24) -- 1.03
Year Ended 6/30:
2006 15.72 .92 (.80) (.21) -- (.09)
2005 14.81 .94 1.04 (.11) -- 1.87
2004 15.75 1.04 (.78) (.05) (.01) .20
2003 15.23 1.08 .71 (.07) (.02) 1.70
2002 15.02 1.18 .14 (.12) (.01) 1.19
===========================================================================================================
Less Distributions Total Returns
-------------------------------- --------------------
Net Offering Based Ending
Investment Capital Costs and Ending on Net
Income to Gains to Preferred Common Based Common Assets
Common Common Share Share Ending on Share Net Applicable
Share- Share- Underwriting Net Asset Market Market Asset to Common
holders holders Total Discounts Value Value Value* Value* Shares (000)
- -----------------------------------------------------------------------------------------------------------------------------------
FLORIDA INVESTMENT QUALITY (NQF)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(c) $ (.34) $ -- $ (.34) $ -- $14.74 $ 13.08 (4.92)% (.49)% $241,547
2007(b) (.57) -- (.57) -- 15.16 14.11 12.93 7.08 251,475
Year Ended 6/30:
2006 (.80) -- (.80) -- 14.70 13.02 (11.13) (.85) 243,913
2005 (.97) -- (.97) -- 15.63 15.48 17.51 12.40 259,071
2004 (1.01) (.20) (1.21) -- 14.81 14.03 (9.61) .95 245,045
2003 (.97) (.13) (1.10) -- 15.87 16.75 13.28 12.02 261,856
2002 (.92) (.06) (.98) -- 15.19 15.83 13.27 9.77 249,833
FLORIDA QUALITY INCOME (NUF)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(c) (.33) -- (.33) -- 14.96 13.23 (3.44) (.30) 212,012
2007(b) (.55) -- (.55) -- 15.34 14.04 11.75 6.97 219,447
Year Ended 6/30:
2006 (.77) -- (.77) -- 14.86 13.07 (9.64) (.55) 212,504
2005 (.96) -- (.96) -- 15.72 15.27 17.42 12.89 224,792
2004 (1.00) (.14) (1.14) -- 14.81 13.84 (10.29) 1.29 211,659
2003 (1.00) (.18) (1.18) -- 15.75 16.60 11.56 11.45 224,311
2002 (.94) (.04) (.98) -- 15.23 15.99 13.80 8.15 216,044
===================================================================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement**
------------------------------------------------ -------------------------------------------------------------
Expenses Expenses Net Expenses Expenses Net Portfolio
Including Excluding Investment Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
- -----------------------------------------------------------------------------------------------------------------------------------
FLORIDA INVESTMENT QUALITY (NQF)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(c) 1.93%*** 1.19%*** 6.47%*** 1.92%*** 1.19%*** 6.47%*** 6%
2007(b) 1.73*** 1.21*** 6.24*** 1.72*** 1.19*** 6.25*** 13
Year Ended 6/30:
2006 1.20 1.20 6.21 1.19 1.19 6.22 6
2005 1.23 1.23 6.26 1.22 1.22 6.27 15
2004 1.25 1.25 6.92 1.25 1.25 6.92 23
2003 1.20 1.20 7.00 1.19 1.19 7.01 16
2002 1.26 1.26 7.53 1.23 1.23 7.56 34
FLORIDA QUALITY INCOME (NUF)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(c) 1.97*** 1.21*** 6.28*** 1.96*** 1.20*** 6.29*** 3
2007(b) 1.78*** 1.23*** 6.09*** 1.76*** 1.21*** 6.11*** 7
Year Ended 6/30:
2006 1.22 1.22 6.06 1.21 1.21 6.06 8
2005 1.24 1.24 6.07 1.23 1.23 6.07 20
2004 1.25 1.25 6.83 1.25 1.25 6.83 38
2003 1.24 1.24 6.92 1.23 1.23 6.94 28
2002 1.28 1.28 7.81 1.26 1.26 7.83 30
==================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- -----------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
- ---------------------------------------------------------------------------------------------
FLORIDA INVESTMENT QUALITY (NQF)
- ---------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(c) $132,000 $25,000 $70,747 $39,500 $10,457
2007(b) 132,000 25,000 72,628 52,835 8,258
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 4/30:
2008(c) 117,000 25,000 70,302 41,110 9,003
2007(b) 117,000 25,000 71,890 41,110 9,184
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 -- --
=============================================================================================
* 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. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period takes place over
several days, and in some instances may not be based on the market price,
so the actual reinvestment price may be different from the price used in
the calculation. Total returns are not annualized.
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. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
+ 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the ten months ended April 30, 2007.
(c) For the six months ended October 31, 2007.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
52-53
| Financial
| HIGHLIGHTS (continued) (Unaudited)
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
- -----------------------------------------------------------------------------------------------------------------------------------
INSURED FLORIDA PREMIUM INCOME (NFL)
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(d) $15.43 $ .48 (.25) $(.14) $ -- $ .09 $ (.35) $ -- $ (.35)
2007(b) 15.14 .79 .38 (.22) (.01) .94 (.63) (.02) (.65)
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 4/30:
2008(d) 14.56 .45 (.31) (.13) -- .01 (.32) -- (.32)
2007(b) 14.07 .75 .50 (.21) -- 1.04 (.55) -- (.55)
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(c) 14.33 .40 .70 (.03) -- 1.07 (.43) -- (.43)
===================================================================================================================================
Total Returns
-------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value* Value*
- --------------------------------------------------------------------------------
INSURED FLORIDA PREMIUM INCOME (NFL)
- --------------------------------------------------------------------------------
Year Ended 4/30:
2008(d) $ -- $ 15.17 $13.54 (5.82)% .60%
2007(b) -- 15.43 14.74 12.05 6.24
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 4/30:
2008(d) -- 14.25 12.97 (2.93) .12
2007(b) -- 14.56 13.69 6.65 7.46
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(c) (.22) 14.75 15.87 8.82 6.08
================================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------
Ratios to Average Net
Applicable to Common Shares
Before Credit/Reimbursement
----------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net
to Common Including Excluding Investment
Shares (000) Interest++(a) Interest++(a) Income++
- ----------------------------------------------------------------------------------
INSURED FLORIDA PREMIUM INCOME (NFL)
- ----------------------------------------------------------------------------------
Year Ended 4/30:
2008(d) $ 215,976 1.62%*** 1.17%*** 6.25%***
2007(b) 222,058 1.25*** 1.18*** 6.13***
Year Ended 6/30:
2006 217,904 1.18 1.18 6.13
2005 233,779 1.16 1.16 6.14
2004 223,965 1.16 1.16 6.36
2003 237,490 1.18 1.18 6.41
2002 223,961 1.21 1.21 6.89
INSURED FLORIDA TAX-FREE ADVANTAGE (NWF)
- ----------------------------------------------------------------------------------
Year Ended 4/30:
2008(d) 55,320 1.25*** 1.25*** 5.83***
2007(b) 56,546 1.25*** 1.25*** 5.73***
Year Ended 6/30:
2006 54,625 1.26 1.26 5.77
2005 57,296 1.24 1.24 5.77
2004 53,504 1.25 1.25 6.04
2003(c) 57,223 1.15* 1.15* 4.18*
==================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement**
-----------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
- ------------------------------------------------------------------------------
INSURED FLORIDA PREMIUM INCOME (NFL)
- ------------------------------------------------------------------------------
Year Ended 4/30:
2008(d) 1.61%*** 1.17%*** 6.26%*** 3%
2007(b) 1.24*** 1.17*** 6.14*** 6
Year Ended 6/30:
2006 1.17 1.17 6.14 9
2005 1.16 1.16 6.15 12
2004 1.15 1.15 6.36 38
2003 1.16 1.16 6.42 14
2002 1.21 1.21 6.89 8
INSURED FLORIDA TAX-FREE ADVANTAGE (NWF)
- ------------------------------------------------------------------------------
Year Ended 4/30:
2008(d) .74*** .74*** 6.34*** 1
2007(b) .76*** .76*** 6.23*** 2
Year Ended 6/30:
2006 .76 .76 6.27 5
2005 .75 .75 6.26 7
2004 .74 .74 6.56 130
2003(c) .67* .67* 4.66* 46
==============================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
--------------------------------------------- ----------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
- -----------------------------------------------------------------------------------------------
INSURED FLORIDA PREMIUM INCOME (NFL)
- -----------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(d) $111,000 $25,000 $73,643 $18,160 $19,005
2007(b) 111,000 25,000 75,013 17,990 19,513
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 4/30:
2008(d) 29,000 25,000 72,690 -- --
2007(b) 29,000 25,000 73,746 -- --
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(c) 29,000 25,000 74,330 -- --
===============================================================================================
* 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. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period takes place over
several days, and in some instances may not be based on the market price,
so the actual reinvestment price may be different from the price used in
the calculation. Total returns are not annualized.
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. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
+ 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 -Inverse Floating Rate Securities.
(b) For the ten months ended April 30, 2007.
(c) For the period November 21, 2002 (commencement of operations) through June
30, 2003.
(d) For the six months ended October 31, 2007.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
54-55
- --------------------------------------------------------------------------------
Annual Investment
Management Agreement
APPROVAL PROCESS
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The Board Members are responsible for overseeing the performance of the
investment adviser to the Funds and determining whether to continue the advisory
arrangements. At the annual review meeting held on May 21, 2007 (the "May
Meeting"), the Board Members of the Funds, including the Independent Board
Members, unanimously approved the continuance of the Investment Management
Agreement between each Fund (each, a "Fund") and Nuveen Asset Management
("NAM"). The foregoing Investment Management Agreements with NAM are hereafter
referred to as the "Original Investment Management Agreements."
Subsequent to the May Meeting, Nuveen Investments, Inc. ("Nuveen"), the parent
company of NAM, entered into a merger agreement providing for the acquisition of
Nuveen by Windy City Investments, Inc., a corporation formed by investors led by
Madison Dearborn Partners, LLC ("MDP"), a private equity investment firm (the
"Transaction"). Each Original Investment Management Agreement, as required by
Section 15 of the Investment Company Act of 1940 (the "1940 Act"), provides for
its automatic termination in the event of its "assignment" (as defined in the
1940 Act). Any change in control of the adviser is deemed to be an assignment.
The consummation of the Transaction will result in a change of control of NAM as
well as its affiliated sub-advisers and therefore cause the automatic
termination of each Original Investment Management Agreement, as required by the
1940 Act. Accordingly, in anticipation of the Transaction, at a meeting held on
July 31, 2007 (the "July Meeting"), the Board Members, including the Independent
Board Members, unanimously approved new Investment Management Agreements (the
"New Investment Management Agreements") with NAM on behalf of each Fund to take
effect immediately after the Transaction or shareholder approval of the new
advisory contracts, whichever is later. The 1940 Act also requires that each New
Investment Management Agreement be approved by the respective Fund's
shareholders in order for it to become effective. Accordingly, to ensure
continuity of advisory services, the Board Members, including the Independent
Board Members, unanimously approved Interim Investment Management Agreements to
take effect upon the closing of the Transaction if shareholders have not yet
approved the New Investment Management Agreements.
Because the information provided and considerations made at the annual review
continue to be relevant with respect to the evaluation of the New Investment
Management Agreements, the Board considered the foregoing as part of its
deliberations of the New Investment Management Agreements. Accordingly, as
indicated, the discussions immediately below outline the materials and
information presented to the Board in connection with the Board's prior annual
review and the analysis undertaken and the conclusions reached by Board Members
when determining to continue the Original Investment Management Agreements.
I. APPROVAL OF THE ORIGINAL INVESTMENT MANAGEMENT AGREEMENTS
During the course of the year, the Board received a wide variety of materials
relating to the services provided by NAM and the performance of the Funds. At
each of its quarterly meetings, the Board reviewed investment performance and
various matters relating to the operations of the Funds and other Nuveen funds,
including the compliance program, shareholder services, valuation, custody,
distribution and other information relating to the nature, extent and quality of
services provided by NAM. Between the regularly scheduled quarterly meetings,
the Board Members received information on particular matters as the need arose.
In preparation for their considerations at the May Meeting, the Independent
Board Members received extensive materials, well in advance of the meeting,
which outlined or are related to, among other things:
o the nature, extent and quality of services provided by NAM;
o the organization and business operations of NAM, including the
responsibilities of various departments and key personnel;
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o each Fund's past performance as well as the Fund's performance compared to
funds with similar investment objectives based on data and information
provided by an independent third party and to customized benchmarks;
o the profitability of Nuveen and certain industry profitability analyses
for unaffiliated advisers;
o the expenses of Nuveen in providing the various services;
o the advisory fees and total expense ratios of each Fund, including
comparisons of such fees and expenses with those of comparable,
unaffiliated funds based on information and data provided by an
independent third party (the "Peer Universe") as well as compared to a
subset of funds within the Peer Universe (the "Peer Group") of the
respective Fund (as applicable);
o the advisory fees NAM assesses to other types of investment products or
clients;
o the soft dollar practices of NAM, if any; and
o from independent legal counsel, a legal memorandum describing among other
things, applicable laws, regulations and duties in reviewing and approving
advisory contracts.
At the May Meeting, NAM made a presentation to, and responded to questions from,
the Board. Prior to and after the presentations and reviewing the written
materials, the Independent Board Members met privately with their legal counsel
to review the Board's duties in reviewing advisory contracts and considering the
renewal of the advisory contracts. The Independent Board Members, in
consultation with independent counsel, reviewed the factors set out in judicial
decisions and Securities and Exchange Commission ("SEC") directives relating to
the renewal of advisory contracts. As outlined in more detail below, the Board
Members considered all factors they believed relevant with respect to each Fund,
including, but not limited to, the following: (a) the nature, extent and quality
of the services to be provided by NAM; (b) the investment performance of the
Fund and NAM; (c) the costs of the services to be provided and profits to be
realized by Nuveen and its affiliates; (d) the extent to which economies of
scale would be realized; and (e) whether fee levels reflect those economies of
scale for the benefit of the Fund's investors. In addition, as noted, the Board
Members met regularly throughout the year to oversee the Funds. In evaluating
the Original Investment Management Agreements, the Board Members also relied
upon their knowledge of NAM, its services and the Funds resulting from their
meetings and other interactions throughout the year. It is with this background
that the Board Members considered each Original Investment Management Agreement.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering the renewal of the Original Investment Management Agreements, the
Board Members considered the nature, extent and quality of NAM's services. The
Board Members reviewed materials outlining, among other things, Nuveen's
organization and business; the types of services that NAM 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
Nuveen had taken for the municipal fund product line. As noted, at the annual
review, the Board Members were already familiar with the organization,
operations and personnel of NAM due to the Board Members' experience in
governing the respective Funds and working with NAM on matters relating to the
Funds. With respect to personnel, the Board Members recognized NAM's investment
in additional qualified personnel throughout the various groups in the
organization and recommended to NAM that it continue to review staffing needs as
necessary. In addition, the Board Members reviewed materials describing the
current status and, in particular, the developments in 2006 with respect to
NAM's investment process, investment strategies (including additional tools used
in executing such strategies), personnel (including portfolio management and
research teams), trading process, hedging activities, risk management operations
(e.g., reviewing credit quality, duration limits, and derivatives use, as
applicable), and investment operations (such as enhancements to trading
procedures, pricing procedures, and client services). The Board Members
recognized NAM's investment of resources and efforts to continue to enhance and
refine its investment process.
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| ANNUAL INVESTMENT MANAGEMENT AGREEMENT
| APPROVAL PROCESS (continued)
In addition to advisory services, the Independent Board Members considered the
quality of administrative and non-advisory services provided by NAM and noted
that NAM and its affiliates provide the Funds with a wide variety of services
and officers and other personnel as are necessary for the operations of the
Funds, including:
o product management;
o fund administration;
o oversight by shareholder services and other fund service providers;
o administration of Board relations;
o regulatory and portfolio compliance; and
o legal support.
As the Funds operate in a highly regulated industry and given the importance of
compliance, the Board Members considered, in particular, Nuveen's compliance
activities for the Funds and enhancements thereto. In this regard, the Board
Members recognized the quality of Nuveen's compliance team. The Board Members
further noted Nuveen's negotiations with other service providers and the
corresponding reduction in certain service providers' fees at the May Meeting.
In addition to the foregoing services, the Board Members also noted the
additional services that NAM or its affiliates provide to Nuveen's closed-end
funds, including, in particular, its secondary market support activities. The
Board Members recognized Nuveen's continued commitment to supporting the
secondary market for the common shares of its closed-end funds through a variety
of programs designed to raise investor and analyst awareness and understanding
of closed-end funds. These efforts include:
o maintaining shareholder communications;
o providing advertising for the Nuveen closed-end funds;
o maintaining its closed-end fund website;
o maintaining continual contact with financial advisers;
o providing educational symposia;
o conducting research with investors and financial analysis regarding
closed-end funds; and
o evaluating secondary market performance.
With respect to the Nuveen closed-end funds that utilize leverage through the
issuance of preferred shares ("Preferred Shares"), the Board Members noted
Nuveen's continued support for the holders of Preferred Shares by, among other
things:
o maintaining an in-house trading desk;
o maintaining a product manager for the Preferred Shares;
o developing distribution for Preferred Shares with new market participants;
o maintaining an orderly auction process;
o managing leverage and risk management of leverage; and
o maintaining systems necessary to test compliance with rating agency
criteria.
Based on their review, the Board Members found that, overall, the nature, extent
and quality of services provided (and expected to be provided) to the respective
Funds under the Original Investment Management Agreements were satisfactory.
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B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM
At the May Meeting, 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 (the "Performance Peer
Group") based on data provided by an independent third party (as described
below). The Board Members also reviewed the respective Fund's portfolio level
performance (which does not reflect fund level fees and expenses, and leverage)
against customized benchmarks, described in further detail below.
In evaluating the performance information during the annual review at the May
Meeting, in certain instances, the Board Members noted that the closest
Performance Peer Group for a fund may not adequately reflect such fund's
investment objectives and strategies, thereby limiting the usefulness of the
comparisons of such fund's performance with that of the Performance Peer Group.
With respect to state-specific municipal funds, the Board Members also
recognized that certain 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. With respect to municipal
closed-end funds, funds that do not have corresponding state-specific
Performance Peer Groups are from states other than New York, California,
Florida, New Jersey, Michigan and Pennsylvania. However, with respect to funds
based in Florida, New Jersey, Michigan and Pennsylvania, the peer group may be
so small or the Nuveen funds may dominate the category to such an extent that
performance information for such funds was also compared to the more general
category for all states (other than New York and California).
The Board Members 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,
2006. The Board Members also reviewed the Fund's portfolio level performance
(which does not reflect fund level fees and expenses, and leverage) compared to
customized portfolio level benchmarks for the one- and three-year periods ending
December 31, 2006 (as applicable). The analysis was used to assess the efficacy
of investment decisions against appropriate measures of risk and total return,
within specific market segments. This information supplemented the Fund
performance information provided to the Board at each of its quarterly meetings.
Based on their review, the Board Members determined that each Fund's investment
performance over time had been satisfactory, subject to the following. With
respect to various municipal closed-end funds, the Board Members noted relative
total return underperformance in recent years compared to peers. The Board
Members reviewed materials and discussed with NAM the factors contributing to
the shift in performance including, among other things, the degree of risk
undertaken by peers compared to the municipal closed-end funds (such as through
the increased use of leverage or taking concentrated positions in high risk
credits). In addition, the Board Members also considered a fund's dividend
performance and the extent of any secondary market discounts. The Board Members
noted NAM's efforts to evaluate the factors affecting performance and determine
whether modification to a fund's investment strategy is necessary or
appropriate, and concluded that they were satisfied with the steps being taken.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
During the annual review, 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. In reviewing
the fee schedule for a Fund, the Board Members 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). The Board Members
further 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 had significant
overlap or even consisted entirely of the same unaffiliated funds. In
reviewing the comparisons of fee and expense information, the Board
Members recognized that in certain cases, the fund size relative to peers,
the small size and odd composition of the Peer Group (including
differences
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| ANNUAL INVESTMENT MANAGEMENT AGREEMENT
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in objectives and strategies), expense anomalies, timing of information
used or other factors impacting the comparisons thereby limited some of
the usefulness of the comparative data. The Board Members also considered
the differences in the use of leverage. Based on their review of the fee
and expense information provided, the Board Members 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
At the annual review, the Board Members further reviewed data comparing
the advisory fees of NAM with fees NAM charges to other clients. With
respect to municipal funds, such clients include NAM's municipal
separately managed accounts. In general, the advisory fees charged for
separate accounts are somewhat lower than the advisory fees assessed to
the Funds. The Board Members considered the differences in the product
types, including, but not limited to, the services provided, the structure
and operations, product distribution and costs thereof, portfolio
investment policies, investor profiles, account sizes and regulatory
requirements. The Board Members noted, in particular, that the range of
services provided to the Funds (as discussed above) is much more extensive
than that provided to separately managed accounts. As described in further
detail above, such additional services include, but are not limited to:
product management, fund administration, oversight of third party service
providers, administration of Board relations, and legal support. The Board
Members noted that the Funds operate in a highly regulated industry
requiring extensive compliance functions compared to other investment
products. Given the inherent differences in the products, particularly the
extensive services provided to the Funds, the Board Members believe such
facts justify the different levels of fees.
3. PROFITABILITY OF NUVEEN
In conjunction with its review of fees, the Board Members also considered
the profitability of Nuveen for its advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers) and its
financial condition. At the annual review, the Board Members reviewed the
revenues and expenses of Nuveen's advisory activities for the last three
years, the allocation methodology used in preparing the profitability data
as well as the 2006 Annual Report for Nuveen. The Board Members noted this
information supplemented the profitability information requested and
received during the year to help keep them apprised of developments
affecting profitability (such as changes in fee waivers and expense
reimbursement commitments). In this regard, the Board Members noted the
enhanced dialogue and information regarding profitability with NAM during
the year, including more frequent meetings and updates from Nuveen's
corporate finance group. The Board Members also 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 profit margins of various unaffiliated management
firms with similar amounts of assets under management prepared by Nuveen.
In reviewing profitability, the Board Members recognized the subjective
nature of determining profitability which may be affected by numerous
factors, including the allocation of expenses. Further, the Board Members
recognized the difficulties in making comparisons as the profitability of
other advisers generally is not publicly available and the profitability
information that is available for certain advisers or management firms may
not be representative of the industry and may be affected by, among other
things, the adviser's particular business mix, capital costs, types of
funds managed and expense allocations.
Notwithstanding the foregoing, the Board Members reviewed Nuveen's methodology
and assumptions for allocating expenses across product lines to determine
profitability. Last year, the Board Members also designated an Independent Board
Member as a point person for the Board to review the methodology determinations
during the year and any refinements thereto, which relevant information produced
from such process was reported to the full Board. In reviewing profitability,
the Board Members recognized Nuveen's increased investment in its fund business.
Based on its review, the Board Members concluded that Nuveen's level of
profitability for its advisory activities was reasonable in light of the
services provided.
In evaluating the reasonableness of the compensation, the Board Members also
considered other amounts paid to NAM by the Funds as well as any indirect
benefits (such as soft dollar arrangements, if any) NAM and its affiliates
receive, or are expected to receive, that are directly attributable to the
management of the
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Funds, if any. See Section E below for additional information on indirect
benefits NAM may receive as a result of its relationship with the Funds. Based
on their review of the overall fee arrangements of each Fund, the Board Members
determined that the advisory fees and expenses of the Funds were reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Board Members recognized the potential
benefits resulting from the costs of a Fund being spread over a larger asset
base. To help ensure the shareholders share in these benefits, the Board Members
reviewed and considered the breakpoints in the advisory fee schedules that
reduce advisory fees. In addition to advisory fee breakpoints, the Board also
approved a complex-wide fee arrangement in 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 Board Members noted that the
last complex-wide asset level breakpoint for the complex-wide fee schedule was
at $91 billion and that the Board Members anticipated further review and/or
negotiations prior to the assets of the Nuveen complex reaching such threshold.
Based on their review, the Board Members concluded that the breakpoint schedule
and complex-wide fee arrangement were acceptable and desirable in providing
benefits from economies of scale to shareholders, subject to further evaluation
of the complex-wide fee schedule as assets in the complex increase. See Section
II, Paragraph D - "Approval of the New Investment Management Agreements -
Economies of Scale and Whether Fee Levels Reflect These Economies of Scale" for
information regarding subsequent modifications to the complex-wide fee.
E. INDIRECT BENEFITS
In evaluating fees, the Board Members also considered any indirect benefits or
profits NAM or its affiliates may receive as a result of its relationship with
each Fund. With respect to closed-end funds, the Board Members considered the
revenues received by affiliates of NAM 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 Board Members considered whether NAM received any
benefits from soft dollar arrangements whereby a portion of the commissions paid
by a Fund for brokerage may be used to acquire research that may be useful to
NAM in managing the assets of the Funds and other clients. With respect to NAM,
the Board Members noted that NAM does not currently have any soft dollar
arrangements; however, to the extent certain bona fide agency transactions that
occur on markets that traditionally trade on a principal basis and riskless
principal transactions are considered as generating "commissions," NAM intends
to comply with the applicable safe harbor provisions.
Based on their review, the Board Members concluded that any indirect benefits
received by NAM as a result of its relationship with the Funds were reasonable
and within acceptable parameters.
F. OTHER CONSIDERATIONS
The Board Members did not identify any single factor discussed previously as
all-important or controlling in their considerations to continue an advisory
contract. The Board Members, including the Independent Board Members,
unanimously concluded that the terms of the Original Investment Management
Agreements are fair and reasonable, that NAM's fees are reasonable in light of
the services provided to each Fund and that the renewal of the Original
Investment Management Agreements be approved.
II. APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENTS
Following the May Meeting, the Board Members were advised of the potential
Transaction. As noted above, the completion of the Transaction would terminate
each of the Original Investment Management Agreements. Accordingly, at the July
Meeting, the Board of each Fund, including the Independent Board Members,
unanimously approved the New Investment Management Agreements on behalf of the
respective Funds. Leading up to the July Meeting, the Board Members had several
meetings and deliberations with and without Nuveen management present, and with
the advice of legal counsel, regarding the proposed Transaction as outlined
below.
On June 8, 2007, the Board Members held a special telephonic meeting to discuss
the proposed Transaction. At that meeting, the Board Members established a
special ad hoc committee comprised solely of Independent Board Members to focus
on the Transaction and to keep the Independent Board Members
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| ANNUAL INVESTMENT MANAGEMENT AGREEMENT
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updated with developments regarding the Transaction. On June 15, 2007, the ad
hoc committee discussed with representatives of NAM the Transaction and
modifications to the complex-wide fee schedule that would generate additional
fee savings at specified levels of complex-wide asset growth. Following the
foregoing meetings and several subsequent telephonic conferences among
Independent Board Members and independent counsel, and between Independent Board
Members and representatives of Nuveen, the Board met on June 18, 2007 to further
discuss the proposed Transaction. Immediately prior to and then again during the
June 18, 2007 meeting, the Independent Board Members met privately with their
independent legal counsel. At that meeting, the Board met with representatives
of MDP, of Goldman Sachs, Nuveen's financial adviser in the Transaction, and of
the Nuveen Board to discuss, among other things, the history and structure of
MDP, the terms of the proposed Transaction (including the financing terms), and
MDP's general plans and intentions with respect to Nuveen (including with
respect to management, employees, and future growth prospects). On July 9, 2007,
the Board also met to be updated on the Transaction as part of a special
telephonic Board meeting. The Board Members were further updated at a special
in-person Board meeting held on July 19, 2007 (one Independent Board Member
participated telephonically). Subsequently, on July 27, 2007, the ad hoc
committee held a telephonic conference with representatives of Nuveen and MDP to
further discuss, among other things, the Transaction, the financing of the
Transaction, retention and incentive plans for key employees, the effect of
regulatory restrictions on transactions with affiliates after the Transaction,
and current volatile market conditions and their impact on the Transaction.
In connection with their review of the New Investment Management Agreements, the
Independent Board Members, through their independent legal counsel, also
requested in writing and received additional information regarding the proposed
Transaction and its impact on the provision of services by NAM and its
affiliates.
The Independent Board Members received, well in advance of the July Meeting,
materials which outlined, among other things:
o the structure and terms of the Transaction, including MDP's co-investor
entities and their expected ownership interests, and the financing
arrangements that will exist for Nuveen following the closing of the
Transaction;
o the strategic plan for Nuveen following the Transaction;
o the governance structure for Nuveen following the Transaction;
o any anticipated changes in the operations of the Nuveen funds following
the Transaction, including changes to NAM's and Nuveen's day-to-day
management, infrastructure and ability to provide advisory, distribution
or other applicable services to the Funds;
o any changes to senior management or key personnel who work on Fund related
matters (including portfolio management, investment oversight, and
legal/compliance) and any retention or incentive arrangements for such
persons;
o any anticipated effect on each Fund's expense ratio (including advisory
fees) following the Transaction;
o any benefits or undue burdens imposed on the Funds as a result of the
Transaction;
o any legal issues for the Funds as a result of the Transaction;
o the nature, quality and extent of services expected to be provided to the
Funds following the Transaction, changes to any existing services and
policies affecting the Funds, and cost-cutting efforts, if any, that may
impact such services or policies;
o any conflicts of interest that may arise for Nuveen or MDP with respect to
the Funds;
o the costs associated with obtaining necessary shareholder approvals and
who would bear those costs; and
o from legal counsel, a memorandum describing the applicable laws,
regulations and duties in approving advisory contracts, including, in
particular, with respect to a change of control.
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Immediately preceding the July Meeting, representatives of MDP met with the
Board to further respond to questions regarding the Transaction. After the
meeting with MDP, the Independent Board Members met with independent legal
counsel in executive session. At the July Meeting, Nuveen also made a
presentation and responded to questions. Following the presentations and
discussions of the materials presented to the Board, the Independent Board
Members met again in executive session with their counsel. As outlined in more
detail below, the Independent Board Members considered all factors they believed
relevant with respect to each Fund, including the impact that the Transaction
could be expected to have on the following: (a) the nature, extent and quality
of services to be provided; (b) the investment performance of the Funds; (c) the
costs of the services and profits to be realized by Nuveen and its affiliates;
(d) the extent to which economies of scale would be realized; and (e) whether
fee levels reflect those economies of scale for the benefit of investors. As
noted above, the Board Members had completed their annual review of the
respective Original Investment Management Agreements at the May Meeting and many
of the factors considered at the annual review were applicable to their
evaluation of the New Investment Management Agreements. Accordingly, in
evaluating the New Investment Management Agreements, the Board Members relied
upon their knowledge and experience with NAM and considered the information
received and their evaluations and conclusions drawn at the annual review. While
the Board reviewed many Nuveen funds at the July Meeting, the Independent Board
Members evaluated all information available to them on a fund-by-fund basis, and
their determinations were made separately in respect of each Fund.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In evaluating the nature, quality and extent of the services expected to be
provided by NAM under the New Investment Management Agreements, the Independent
Board Members considered, among other things, the expected impact, if any, of
the Transaction on the operations, facilities, organization and personnel of
NAM; the potential implications of regulatory restrictions on the Funds
following the Transaction; the ability of NAM and its affiliates to perform
their duties after the Transaction; and any anticipated changes to the current
investment and other practices of the Funds.
The Board noted that the terms of each New Investment Management Agreement,
including the fees payable thereunder, are substantially identical to those of
the Original Investment Management Agreement relating to the same Fund (with
both reflecting reductions to fee levels in the complex-wide fee schedule for
complex-wide assets in excess of $80 billion that have an effective date of
August 20, 2007). The Board considered that the services to be provided and the
standard of care under the New Investment Management Agreements are the same as
the Original Investment Management Agreements. The Board Members further noted
that key personnel who have responsibility for the Funds in each area, including
portfolio management, investment oversight, fund management, fund operations,
product management, legal/compliance and board support functions, are expected
to be the same following the Transaction. The Board Members considered and are
familiar with the qualifications, skills and experience of such personnel. The
Board also considered certain information regarding anticipated retention or
incentive plans designed to retain key personnel. Further, the Board Members
noted that no changes to Nuveen's infrastructure or operations as a result of
the Transaction were anticipated other than potential enhancements as a result
of an expected increase in the level of investment in such infrastructure and
personnel. The Board noted MDP's representations that it does not plan to have a
direct role in the management of Nuveen, appointing new management personnel, or
directly impacting individual staffing decisions. The Board Members also noted
that there were not any planned "cost cutting" measures that could be expected
to reduce the nature, extent or quality of services. After consideration of the
foregoing, the Board Members concluded that no diminution in the nature, quality
and extent of services provided to the Funds and their shareholders is expected.
In addition to the above, the Board Members considered potential changes in the
operations of each Fund. In this regard, the Board Members considered the
potential effect of regulatory restrictions on the Funds' transactions with
future affiliated persons. During their deliberations, it was noted that, after
the Transaction, a subsidiary of Merrill Lynch is expected to have an ownership
interest in Nuveen at a level that will make Merrill Lynch an affiliated person
of Nuveen. The Board Members recognized that applicable law would generally
prohibit the Funds from engaging in securities transactions with Merrill Lynch
as principal, and would also impose restrictions on using Merrill Lynch for
agency transactions. They recognized that having MDP and Merrill Lynch as
affiliates may restrict the Nuveen funds' ability to invest in securities of
issuers controlled by MDP or issued by Merrill Lynch and its affiliates even if
not bought directly from MDP or Merrill
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Lynch as principal. They also recognized that various regulations may require
the Nuveen funds to apply investment limitations on a combined basis with
affiliates of Merrill Lynch. The Board Members considered information provided
by NAM regarding the potential impact on the Nuveen funds' operations as a
result of these regulatory restrictions. The Board Members considered, in
particular, the Nuveen funds that may be impacted most by the restricted access
to Merrill Lynch, including: municipal funds (particularly certain
state-specific funds), senior loan funds, taxable fixed income funds, preferred
security funds and funds that heavily use derivatives. The Board Members
considered such funds' historic use of Merrill Lynch as principal in their
transactions and information provided by NAM regarding the expected impact
resulting from Merrill Lynch's affiliation with Nuveen and available measures
that could be taken to minimize such impact. NAM informed the Board Members
that, although difficult to determine with certainty, its management did not
believe that MDP's or Merrill Lynch's status as an affiliate of Nuveen would
have a material adverse effect on any Nuveen fund's ability to pursue its
investment objectives and policies.
In addition to the regulatory restrictions considered by the Board, the Board
Members also considered potential conflicts of interest that could arise between
the Nuveen funds and various parties to the Transaction and discussed possible
ways of addressing such conflicts.
Based on its review along with its considerations regarding services at the
annual review, the Board concluded that the Transaction was not expected to
adversely affect the nature, quality or extent of services provided by NAM and
that the expected nature, quality and extent of such services supported approval
of the New Investment Management Agreements.
B. PERFORMANCE OF THE FUNDS
With respect to the performance of the Funds, the Board considered that the
portfolio management personnel responsible for the management of the Funds'
portfolios were expected to continue to manage the portfolios following the
completion of the Transaction.
In addition, the Board Members recently reviewed Fund performance at the May
Meeting, as described above, and determined that Fund performance was
satisfactory or better, subject to the following. With respect to certain
municipal closed-end funds with relative short-term underperformance, the Board
Members concluded NAM was taking steps to evaluate the factors affecting
performance and those steps would continue following the Transaction. Further,
the investment policies and strategies were not expected to change as a result
of the Transaction.
In light of the foregoing factors, along with the prior findings regarding
performance at the annual review, the Board concluded that its findings with
respect to performance supported approval of the New Investment Management
Agreements.
C. FEES, EXPENSES AND PROFITABILITY
As described in more detail above, during the annual review, the Board Members
considered, among other things, the management fees and expenses of the Funds,
the breakpoint schedules, and comparisons of such fees and expenses with peers.
At the annual review, the Board Members determined that the respective Fund's
advisory fees and expenses were reasonable. In evaluating the costs of services
to be provided by NAM under the New Investment Management Agreements and the
profitability of Nuveen for its advisory activities, the Board Members
considered their prior conclusions at the annual review and whether the
management fees or other expenses would change as a result of the Transaction.
As described above, the investment management fee is composed of two
components--a fund-level component and complex-wide level component. The fee
schedule under the New Investment Management Agreements to be paid to NAM is
identical to that under the Original Investment Management Agreements, including
the modified complex-wide fee schedule. As noted above, the Board recently
approved a modified complex-wide fee schedule that would generate additional fee
savings on complex-wide assets above $80 billion. The modifications have an
effective date of August 20, 2007 and are part of the Original Investment
Management Agreements. Accordingly, the terms of the complex-wide component
under the New Investment Management Agreements are the same as under the
Original Investment Management Agreements. The Board Members also noted that
Nuveen has committed for a period of two years from the
64
date of closing of the Transaction that it will not increase gross management
fees for any Nuveen fund and will not reduce voluntary expense reimbursement
levels for any Nuveen fund from their currently scheduled prospective levels.
Based on the information provided, the Board Members did not expect that overall
Fund expenses would increase as a result of the Transaction.
In addition, the Board Members considered that additional fund launches were
anticipated after the Transaction which would result in an increase in total
assets under management in the complex and a corresponding decrease in overall
management fees under the complex-wide fee schedule. Taking into consideration
the Board's prior evaluation of fees and expenses at the annual renewal, and the
modification to the complex-wide fee schedule, the Board determined that the
management fees and expenses were reasonable.
While it is difficult to predict with any degree of certainty the impact of the
Transaction on Nuveen's profitability, at the recent annual review, the Board
Members were satisfied that Nuveen's level of profitability for its advisory
activities was reasonable. During the year, the Board Members had noted the
enhanced dialogue regarding profitability and the appointment of an Independent
Board Member as a point person to review methodology determinations and
refinements in calculating profitability. Given their considerations at the
annual review and the modifications to the complex-wide fee schedule, the Board
Members were satisfied that Nuveen's level of profitability for its advisory
activities continues to be reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
The Board Members have been cognizant of economies of scale and the potential
benefits resulting from the costs of a Fund being spread over a larger asset
base. To help ensure that shareholders share in the benefits derived from
economies of scale, the Board adopted the complex-wide fee arrangement in 2004.
At the May Meeting, the Board Members reviewed the complex-wide fee arrangements
and noted that additional negotiations may be necessary or appropriate as the
assets in the complex approached the $91 billion threshold. In light of this
assessment coupled with the upcoming Transaction, at the June 15, 2007 meeting,
the ad hoc committee met with representatives of Nuveen to further discuss
modifications to the complex-wide fee schedule that would generate additional
savings for shareholders as the assets of the complex grow. The proposed terms
for the complex-wide fee schedule are expressed in terms of targeted cumulative
savings at specified levels of complex-wide assets, rather than in terms of
targeted marginal complex-wide fee rates. Under the modified schedule, the
schedule would generate additional fee savings beginning at complex-wide assets
of $80 billion in order to achieve targeted cumulative annual savings at $91
billion of $28 million on a complex-wide level (approximately $0.6 million
higher than those generated under the then current schedule) and generate
additional fee savings for asset growth above complex-wide assets of $91 billion
in order to achieve targeted annual savings at $125 billion of assets of
approximately $50 million on a complex-wide level (approximately $2.2 million
higher annually than that generated under the then current schedule). At the
July Meeting, the Board approved the modified complex-wide fee schedule for the
Original Investment Management Agreements and these same terms will apply to the
New Investment Management Agreements. Accordingly, the Board Members believe
that the breakpoint schedules and revised complex-wide fee schedule are
appropriate and desirable in ensuring that shareholders participate in the
benefits derived from economies of scale.
E. INDIRECT BENEFITS
During their recent annual review, the Board Members considered any indirect
benefits that NAM may receive as a result of its relationship with the Funds, as
described above. As the policies and operations of Nuveen are not anticipated to
change significantly after the Transaction, such indirect benefits should remain
after the Transaction. The Board Members further considered any additional
indirect benefits to be received by NAM or its affiliates after the Transaction.
The Board Members noted that other than benefits from its ownership interest in
Nuveen and indirect benefits from fee revenues paid by the Funds under the
management agreements and other Board-approved relationships, it was currently
not expected that MDP or its affiliates would derive any benefit from the Funds
as a result of the Transaction or transact any business with or on behalf of the
Funds (other than perhaps potential Fund acquisitions, in secondary market
transactions, of securities issued by MDP portfolio companies); or that Merrill
Lynch or its affiliates would derive any benefits from the Funds as a result of
the Transaction (noting that, indeed, Merrill Lynch would stand to experience
the discontinuation of principal transaction activity with the Nuveen funds and
likely would experience a noticeable reduction in the volume of agency
transactions with the Nuveen funds).
65
| ANNUAL INVESTMENT MANAGEMENT AGREEMENT
| APPROVAL PROCESS (continued)
F. OTHER CONSIDERATIONS
In addition to the factors above, the Board Members also considered the
following with respect to the Funds:
o Nuveen would rely on the provisions of Section 15(f) of the 1940 Act.
Section 15(f) provides, in substance, that when a sale of a controlling
interest in an investment adviser occurs, the investment adviser or any of
its affiliated persons may receive any amount or benefit in connection
with the sale so long as (i) during the three-year period following the
consummation of a transaction, at least 75% of the investment company's
board of directors must not be "interested persons" (as defined in the
1940 Act) of the investment adviser or predecessor adviser and (ii) an
"unfair burden" (as defined in the 1940 Act, including any interpretations
or no-action letters of the SEC) must not be imposed on the investment
company as a result of the transaction relating to the sale of such
interest, or any express or implied terms, conditions or understanding
applicable thereto. In this regard, to help ensure that an unfair burden
is not imposed on the Nuveen funds, Nuveen has committed for a period of
two years from the date of the closing of the Transaction (i) not to
increase gross management fees for any Nuveen fund; (ii) not to reduce
voluntary expense reimbursement levels for any Nuveen fund from their
currently scheduled prospective levels during that period; (iii) that no
Nuveen fund whose portfolio is managed by a Nuveen affiliate shall use
Merrill Lynch as a broker with respect to portfolio transactions done on
an agency basis, except as may be approved in the future by the Compliance
Committee of the Board; and (iv) that NAM shall not cause the Funds and
other municipal funds that NAM manages, as a whole, to enter into
portfolio transactions with or through the other minority owners of
Nuveen, on either a principal or an agency basis, to a significantly
greater extent than both what one would expect an investment team to use
such firm in the normal course of business, and what NAM has historically
done, without prior Board or Compliance Committee approval (excluding the
impact of proportionally increasing the use of such other "minority
owners" to fill the void necessitated by not being able to use Merrill
Lynch).
o The Funds would not incur any costs in seeking the necessary shareholder
approvals for the New Investment Management Agreements (except for any
costs attributed to seeking shareholder approvals of Fund specific matters
unrelated to the Transaction, such as approval of Board Members, in which
case a portion of such costs will be borne by the applicable Funds).
o The reputation, financial strength and resources of MDP.
o The long-term investment philosophy of MDP and anticipated plans to grow
Nuveen's business to the benefit of the Nuveen funds.
o The benefits to the Nuveen funds as a result of the Transaction including:
(i) as a private company, Nuveen may have more flexibility in making
additional investments in its business; (ii) as a private company, Nuveen
may be better able to structure compensation packages to attract and
retain talented personnel; (iii) as certain of Nuveen's distribution
partners are expected to be equity or debt investors in Nuveen, Nuveen may
be able to take advantage of new or enhanced distribution arrangements
with such partners; and (iv) MDP's experience, capabilities and resources
that may help Nuveen identify and acquire investment teams or firms and
finance such acquisitions.
o The historic premium and discount levels at which the shares of the Nuveen
funds have traded at specified dates with particular focus on the premiums
and discounts after the announcement of the Transaction, taking into
consideration recent volatile market conditions and steps or initiatives
considered or undertaken by NAM to address discount levels.
66
G. CONCLUSION
The Board Members did not identify any single factor discussed previously as
all-important or controlling. The Board Members, including the Independent Board
Members, unanimously concluded that the terms of the New Investment Management
Agreements are fair and reasonable, that the fees therein are reasonable in
light of the services to be provided to each Fund and that the New Investment
Management Agreements should be approved and recommended to shareholders.
III. APPROVAL OF INTERIM CONTRACTS
As noted above, at the July Meeting, the Board Members, including the
Independent Board Members, unanimously approved the Interim Investment
Management Agreements. If necessary to assure continuity of advisory services,
the Interim Investment Management Agreements will take effect upon the closing
of the Transaction if shareholders have not yet approved the New Investment
Management Agreements. The terms of each Interim Investment Management Agreement
are substantially identical to those of the corresponding Original Investment
Management Agreement and New Investment Management Agreement, respectively,
except for certain term and escrow provisions. In light of the foregoing, the
Board Members, including the Independent Board Members, unanimously determined
that the scope and quality of services to be provided to the Funds under the
respective Interim Investment Management Agreement are at least equivalent to
the scope and quality of services provided under the applicable Original
Investment Management Agreement.
67
- --------------------------------------------------------------------------------
Reinvest Automatically
EASILY and CONVENIENTLY
- --------------------------------------------------------------------------------
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen 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
greater of the net asset value or 95% of 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. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. 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.
68
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.
69
- --------------------------------------------------------------------------------
Glossary of
TERMS USED in this REPORT
- --------------------------------------------------------------------------------
o 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.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (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 unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o INVERSE FLOATERS: Inverse floating rate securities are created by
depositing a municipal bond, typically with a fixed interest rate, into a
special purpose trust created by a broker-dealer. This trust, in turn, (a)
issues floating rate certificates typically paying short-term tax-exempt
interest rates to third parties in amounts equal to some fraction of the
deposited bond's par amount or market value, and (b) issues an inverse
floating rate certificate (sometimes referred to as an "inverse floater")
to an investor (such as a Fund) interested in gaining investment exposure
to a long-term municipal bond. The income received by the holder of the
inverse floater varies inversely with the short-term rate paid to the
floating rate certificates' holders, and in most circumstances the holder
of the inverse floater bears substantially all of the underlying bond's
downside investment risk. The holder of the inverse floater typically also
benefits disproportionately from any potential appreciation of the
underlying bond's value. Hence, an inverse floater essentially represents
an investment in the underlying bond on a leveraged basis.
o 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.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o 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.
o 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.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest
coupon to its holders during the life of the bond. Tax-exempt income to
the holder of the bond comes from accretion of the difference between the
original purchase price of the bond at issuance and the par value of the
bond at maturity and is effectively paid at maturity. The market prices of
zero coupon bonds generally are more volatile than the market prices of
bonds that pay interest periodically.
70
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
twelve-month period ended June 30, 2007, 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 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.
INVESTMENT POLICY CHANGES
In May 2007, the Funds' Board of Trustees voted to permit the Funds' to make
loans from Fund assets to certain bond issuers. The amounts of these loans are
subject to strict limits. This policy is designed to enhance the Funds' ability
to meet their Funds' investment objectives by providing for increased portfolio
management flexibility, greater diversification potential, and opportunities for
increased capital appreciation over time.
BOARD OF TRUSTEES
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Carole E. Stone
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 stock in the future at
such times and in such amounts as is deemed advisable. During the period covered
by this report NQF, NUF and NFL repurchased 197,700, 131,400, and 160,200 common
shares, respectively. Any future repurchases will be reported to shareholders in
the next annual or semi-annual report.
71
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 $170 billion in assets, as of September 30, 2007, 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
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., CHICAGO, IL 60606.
PLEASE read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/etf
Share prices
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Investor education
Interactive planning tools
ESA-A-1007D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. 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.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Period* (a) (b) (c) (d)*
TOTAL NUMBER OF AVERAGE TOTAL NUMBER OF SHARES MAXIMUM NUMBER (OR
SHARES (OR PRICE (OR UNITS) PURCHASED AS APPROXIMATE DOLLAR VALUE) OF
UNITS) PAID PER PART OF PUBLICLY SHARES (OR UNITS) THAT MAY YET
PURCHASED SHARE (OR ANNOUNCED PLANS OR BE PURCHASED UNDER THE PLANS OR
UNIT) PROGRAMS PROGRAMS
JULY 10-31, 2007
54,700 $ 13.76 54,700 1,345,300
AUGUST 1-31, 2007
70,400 $ 13.63 125,100 1,274,900
SEPTEMBER 1-30, 2007
35,100 $ 13.99 160,200 1,239,800
OCTOBER 1-31, 2007
0 $ 0 160,200 1,239,800
TOTAL 160,200
* The registrant's repurchase program was announced July 10, 2007. The
registrant's repurchase program authorized the repurchase of 1,400,000
shares. The repurchases made by the registrant pursuant to the program were
all made through open-market transactions.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(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 to
this filing.
(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 Premium Income Municipal Fund
-----------------------------------------------------------
By (Signature and Title)* /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
(Vice President and Secretary)
Date: January 7, 2008
-------------------------------------------------------------------
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: January 7, 2008
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: January 7, 2008
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.