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
- ------------------------------------------------------------------------------
(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, 2008
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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, 2008 | MUNICIPAL CLOSED-END FUNDS
Photo of: Small child
NUVEEN FLORIDA
INVESTMENT QUALITY
MUNICIPAL FUND
NQF
NUVEEN FLORIDA
QUALITY INCOME
MUNICIPAL FUND
NUF
NUVEEN INSURED
FLORIDA PREMIUM
INCOME MUNICIPAL
FUND
NFL
NUVEEN INSURED
FLORIDA TAX-FREE
ADVANTAGE
MUNICIPAL FUND
NWF
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
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Chairman's
LETTER TO SHAREHOLDERS
| Robert P. Bremner | Chairman of the Board
Dear Shareholders,
I'd like to use my initial letter to you to accomplish several things. First, I
want to report that after fourteen years of service on your Fund's Board,
including the last twelve as chairman, Tim Schwertfeger retired from the Board
in June. The Board has elected me to replace him as the chairman, the first time
this role has been filled by someone who is not an employee of Nuveen
Investments. Electing an independent chairman marks a significant milestone in
the management of your Fund, and it aligns us with what is now considered a
"best practice" in the fund industry. Further, it demonstrates the independence
with which your Board has always acted on your behalf.
Following Tim will not be easy. During my eleven previous years on the Nuveen
Fund Board, I found that Tim always set a very high standard by combining
insightful industry and market knowledge and sound, clear judgment. While the
Board will miss his wise counsel, I am certain we will retain the primary
commitment Tim shared with all of us - an unceasing dedication to creating and
retaining value for Nuveen Fund shareholders. This focus on value over time is a
touchstone that I and all the other Board members will continue to use when
making decisions on your behalf.
Second, I also want to report that we are very fortunate to welcome two new
Board members to our team. John Amboian, the current chairman and CEO of Nuveen
Investments, has replaced Tim as Nuveen's representative on the Board. John's
presence will allow the independent Board members to benefit not only from his
leadership role at Nuveen but also his broad understanding of the fund industry
and Nuveen's role within it. We also added Terry Toth as an independent
director. A former CEO of the Northern Trust Company's asset management group,
Terry will bring extensive experience in the fund industry to our deliberations.
Third, on behalf of the entire Board, I would like you to know that we are
closely monitoring the unprecedented market developments and their distressing
impact on the Funds. We believe that these Funds continue to be actively and
constructively managed for the long term and at the same time we are very aware
that these are trying times for our investors. We appreciate the patience you
have shown with the Board and with Nuveen Investments as they manage your
investment through this extremely difficult period.
Fourth, again on behalf of the entire Board, I would like to acknowledge the
effort the whole Nuveen organization is making to resolve the auction rate
preferred share situation in a satisfactory manner. As you know, we are actively
pursuing a number of possible solutions, all with the goal of providing
liquidity for preferred shareholders while preserving the potential benefits of
leverage for common shareholders. We appreciate the patience you have shown as
we've worked through the many difficulties involved.
Finally, I urge you to take the time to review the Portfolio Manager's Comments,
the Common Share Dividend and Share Price Information, and the Performance
Overview sections of this report. All of us are grateful that you have chosen
Nuveen Investments as a partner as you pursue your financial goals, and, on
behalf of myself and the other members of your Fund's Board, let me say we look
forward to continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
Robert P. Bremner
Chairman of the Board
December 23, 2008
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 the Nuveen Florida Funds. Dan, who joined Nuveen in
2000, assumed portfolio management responsibility for these four Funds in 2007.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE FLORIDA FUNDS DURING THE SIX-MONTH
REPORTING PERIOD ENDED OCTOBER 31, 2008?
During this period, stress in the financial markets led to increased price
volatility for many securities, reduced liquidity and a general flight to
quality. We sought to capitalize on this turbulent environment by continuing to
focus on relative value, using a fundamental approach to find undervalued
sectors and individual credits with the potential to perform well over the long
term.
Among the sectors added to all four Funds during this period were insured health
care and insured transit bonds. NQF and NUF also bought Florida housing
securities. All of these additions to the portfolios were purchased in the
longer end of the yield curve, which not only offered more value during this
period, but also helped to extend the Funds' durations(1) and enhance yields. In
addition, NFL and NWF bought an insured water and sewer issue in the
intermediate part of the curve.
To generate cash for purchases, we monitored the types of credits and bond
structures that were attractive to the retail market and took advantage of
strong bids to sell such bonds into retail demand. In NQF and NUF, we also sold
a meaningful portion of our airport holdings subject to the federal alternative
minimum tax early in the reporting period. In addition, some of our new
purchases were funded by reinvesting the proceeds from called or matured bonds.
As a key dimension of risk management, a disciplined approach to duration
positioning remained an important component of our overall strategy. As part of
this approach, we used inverse floating rate securities(2), in NQF, NUF and NFL
during this period. Inverse floaters typically provide the dual benefit of
bringing the Funds' durations closer to our strategic target and enhancing their
income-generation capabilities. NQF, NFL, and NWF also invested in certain
derivative instruments in an effort to manage common share net asset value (NAV)
volatility while trying to minimize any negative impact on
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.
(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 this reporting period, are
further defined within the Notes to Financial Statements and Glossary of
Terms Used in this Report sections of this shareholder report.
4
income streams or common share dividends over the short term. As of October 31,
2008, we continued to use inverse floaters in NQF, NUF and NFL, while all
derivative positions had been removed from NQF, NFL and NWF.
HOW DID THE FUNDS PERFORM?
Individual results for the Nuveen Florida Funds, as well as relevant index and
peer group information, are presented in the accompanying table.
Annualized Total Returns on Common Share Net Asset Value*
For periods ended 10/31/08
Six-Month 1-Year 5-Year 10-Year
Florida Funds
NQF -14.42% -15.09% 0.51% 3.35%
NUF -12.30% -13.34% 1.14% 3.31%
Lipper Other States
Municipal Debt Funds
Average(3) -13 01% -13.59% 1.15% 3.31%
Barclays Capital
Municipal Bond Index(4) -4.70% -3.30% 2.73% 4.14%
Insured Florida Funds
NFL -9.29% -9.41% 1.57% 3.76%
NWF -8.95% -7.59% 2.66% N/A
Lipper Single-State Insured
Municipal Debt Funds
Average(5) -12.53% -13.34% 1.19% 3.52%
Barclays Capital Insured
Municipal Bond Index(4) -4.97% -4.13% 2.65% 4.19%
S&P National Municipal
Bond Index(6) -5.19% -4.15% 2.75% N/A
For the six months ended October 31, 2008, the cumulative returns on common
share NAV for NUF, NFL and NWF exceeded the average return on their respective
Lipper peer groups, while NQF lagged the return for the Lipper Other States
Municipal Debt Funds Average. All four of the Funds underperformed their
respective Barclays Capital index and the Standard & Poor's (S&P) National
Municipal Bond Index.
* Six-month returns are cumulative; returns for one-year, five-year and
ten-year are annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
(3) The Lipper Other States Municipal Debt Funds Average is calculated using
the returns of all closed-end funds in this category for each period as
follows: 6 months, 46; 1 year, 46; 5 years, 46; and 10 years, 18. Fund and
Lipper returns assume reinvestment of dividends. Shareholders should note
that the performance of the Lipper Other States category represents the
overall average of returns for funds from ten different states with a wide
variety of municipal market conditions, making direct comparisons less
meaningful.
(4) The Barclays Capital (formerly Lehman Brothers) Municipal Bond Index is an
unleveraged, unmanaged national index comprising a broad range of
investment-grade municipal bonds, and the Barclays Capital Insured
Municipal Bond Index is an unleveraged, unmanaged national index containing
a broad range of insured municipal bonds. Results for the Barclays Capital
indexes do not reflect any expenses.
(5) The Lipper Single-State Insured Municipal Debt Funds Average is calculated
using the returns of all closed-end funds in this category for each period
as follows: 6 months, 44; 1 year, 44 funds; 5 years, 44 funds; and 10
years, 24 funds. The performance of the Lipper Single-State Insured
Municipal Debt Funds Average represents the overall average of returns for
funds from eight different states with a wide variety of municipal market
conditions. Fund and Lipper returns assume reinvestment of dividends.
(6) The Standard & Poor's (S&P) National Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the investment-grade U.S. municipal bond market.
5
Key management factors that influenced the Funds' returns during this period
included duration positioning, the use of inverse floaters, credit exposure and
sector allocations. In addition, a major factor affecting each Fund's
performance over this period was the use of leverage. The impact of leverage is
discussed in more detail on page seven.
Over the course of this reporting period, we saw the yield curve steepen, as
interest rates at the short end of the curve declined and longer rates generally
rose, especially during September and October. Given these changes in the
interest rate environment, bonds in the Barclays Capital Municipal Bond Index
with maturities of ten years or less generally outperformed the market as a
whole, with bonds maturing in one to four years benefiting the most. In general,
bonds having the longest maturities (twenty-two years and longer) posted the
worst returns. Among the non-insured Funds, NUF's duration profile was favorable
to that of NQF, which benefited NUF's relative performance. Both NFL and NWF had
a positive contribution from their duration profile. All four of these Funds,
however, were hurt by their underweighting of the outperforming shortest end of
the yield curve.
As mentioned earlier, NQF, NUF and NFL used inverse floaters during this period
to help bring their durations closer to our strategic target and enhance
income-generation capabilities. In general, these inverse floaters had a
negative impact on performance. This resulted from the fact that the inverse
floaters effectively increased the Funds' exposure to longer maturity bonds at a
time when shorter maturities were in favor in the market.
Credit exposure was also an important factor in performance during these six
months. Because risk-averse investors generally sought higher quality
investments as disruptions in the financial markets deepened, bonds with higher
credit quality typically performed very well. At the same time, bonds rated BBB
or below and non-rated bonds generally posted poor returns. Insured holdings
with underlying credits that were rated BBB or non-rated were disproportionately
impacted (compared with bonds with underlying credits rated AA or A) if the
insurer backing the bond was downgraded. As of October 31, 2008, NUF had
allocated approximately 10%, and NQF approximately 11% 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 2% allocation to
BBB rated bonds. While investing only in insured
6
securities, NFL held 8% of its portfolio in BBB and non-rated credits, the
result of rating downgrades on certain municipal bond insurers. While exposure
to lower-rated credits had a negative impact on the Funds for this period, the
smaller weightings helped to limit the impact of this exposure.
Sectors of the market that generally contributed positively to the Funds'
performances included general and limited tax obligation issues and resource
recovery credits. Pre-refunded bonds(7), which are usually backed by U.S.
Treasury securities, were one of the top performing segments of the market, due
primarily to their shorter effective maturities, higher credit quality, and
perceived safety. Among these Funds, NWF had the largest allocation of
pre-refunded bonds as of October 31, 2008, while NUF held the smallest
allocation.
In general, bonds that carried any credit risk, regardless of sector, posted
weak performance. Revenue bonds as a whole, and the industrial development and
housing sectors in particular, underperformed the general municipal market. Next
to the industrial development revenue sector, zero coupon bonds were among the
worst performing categories in the municipal market. The health care sector also
performed poorly, as did lower-rated bonds backed by the 1998 master tobacco
settlement agreement.
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
In addition to the factor mentioned above, one of the primary factors negatively
impacting the six-month returns of these Funds relative to those of the
unleveraged Barclays Capital Municipal Bond Index, Barclays Capital Insured
Municipal Bond Index, and S&P National Municipal Bond Index was the Funds' use
of financial leverage. While leverage offers opportunities to generate
additional income and total returns for common shareholders, the benefits
provided by leveraging are influenced by the price movements of the bonds in
each Fund's portfolio. During this period, as yields on longer-term bonds rose
and their prices correspondingly fell, declining valuations had a negative
effect on performance that was magnified by the use of leverage. In addition, at
various points during the six-month period, the Funds' borrowing costs were
relatively high, negatively impacting their total returns.
(7) Pre-refundings, also known as advance 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
RECENT DEVELOPMENTS IN THE MARKET ENVIRONMENT
Beginning in October, the nation's financial institutions and financial
markets--including the municipal bond market--experienced significant turmoil.
Reductions in demand decreased valuations of municipal bonds across all credit
ratings, especially those with lower credit ratings, and this generally reduced
the Funds' net asset values. The municipal market is one in which dealer firms
make markets in bonds on a principal basis using their proprietary capital, and
during the recent market turmoil these firms'capital was severely constrained.
As a result, some firms were unwilling to commit their capital to purchase and
to serve as a dealer for municipal bonds. This reduction in dealer involvement
in the market was accompanied by significant net selling pressure by investors,
particularly with respect to lower-rated municipal bonds, as institutional
investors generally removed money from the municipal bond market, at least in
part because of their need to reduce the leveraging of their municipal
investments. This de-leveraging was in part driven by the overall reduction in
the amount of financing available for such leverage, the increased costs of such
leverage financing, and the need to reduce leverage levels that had recently
increased due to the decline in municipal bond prices.
Municipal bond prices were further negatively impacted by concerns that the need
for further de-leveraging and a supply overhang as a large amount of new issues
were postponed would cause selling pressure to persist for a period of time. In
addition to falling prices, these market conditions resulted in greater price
volatility of municipal bonds; wider credit spreads (i.e., lower quality bonds
fell in price more than higher quality bonds); significantly reduced liquidity
(i.e., the ability to sell bonds at a price close to their carrying value),
particularly for lower quality bonds; and a lack of price transparency (i.e.,
the ability to accurately determine the price at which a bond would likely
trade). Reduced liquidity was most pronounced in mid-October, and although
liquidity improved considerably over ensuing weeks, it may reoccur if financial
turmoil persists or worsens.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
As mentioned earlier, another factor that had an impact on the performance of
these Funds was their position in bonds backed by municipal bond insurers that
experienced downgrades in their credit ratings. During the period covered by
this report, ACA, AMBAC, CIFG, FGIC, MBIA, RAAI and SYNCORA (formerly XLCA)
experienced one or more rating reductions by at least one or more rating
agencies. Subsequent to the reporting period, AMBAC, MBIA and SYNCORA
experienced further rating reductions while FSA received its first rating
reduction by at least one rating agency. At the time this report was prepared,
at least one rating agency has placed each of these insurers on "negative
outlook" or "negative credit watch," which may presage one or more rating
reductions for such insurer or insurers in the future. As concern increased
about the balance sheets of these insurers, prices on bonds insured by these
companies - especially those bonds with weaker underlying credits - declined,
detracting from the Funds' performance. By the end of this period, most insured
bonds were being valued
8
according to their fundamentals as if they were uninsured. On the whole, the
holdings of all of our Funds continued to be well diversified not only between
insured and uninsured bonds, but also within the insured bond category. It is
important to note that municipal bonds historically have had a very low rate of
default.
RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED SECURITIES MARKETS
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the auction rate preferred shares issued by these Funds
than there were offers to buy. This meant that these auctions "failed to clear"
and that many or all auction rate preferred shareholders who wanted to sell
their shares in these auctions were unable to do so. This decline in liquidity
in auction rate preferred shares did not lower the credit quality of these
shares, and auction rate preferred shareholders unable to sell their shares
received distributions at the "maximum rate" applicable to failed auctions as
calculated in accordance with the pre-established terms of the auction rate
preferred shares. At the time this report was prepared, the Funds'managers could
not predict when future auctions might succeed in attracting sufficient buyers
for the shares offered, if ever. The Funds' managers are working diligently to
refund the auction preferred shares, and have made progress in these efforts,
but at present there is no assurance that these efforts will succeed. These
developments generally do not affect the management or investment policies of
these Funds. However, one implication of these auction failures for common
shareholders is that the Funds'cost of leverage will likely be higher, at least
temporarily, than it otherwise would have been had the auctions continued to be
successful. As a result, the Funds' future common share earnings may be lower
than they otherwise would have been.
On June 11, 2008, Nuveen announced the Fund Board's approval of plans to use
tender option bonds (TOBs), also known as floating rate securities, to refinance
a portion of the municipal Funds' outstanding auction rate preferred shares, for
which auctions have been failing for several months. This plan included an
initial phase of approximately $1 billion in forty-one Funds. As of October 31,
2008, none of the Funds included in this shareholder report issued par
redemption notices for their auction rate preferred shares.
On August 7, 2008, four Nuveen municipal Funds (none of which are included in
this shareholder report) issued par redemption notices for all outstanding
shares of their auction rate preferred shares totaling $569.9 million. These
redemptions were achieved through the issuance of variable rate demand preferred
shares (VRDP) in conjunction with the proceeds from the creation of TOBs.
For current, up-to-date information, please visit the Nuveen CEF Auction Rate
Preferred Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
9
Common Share
Dividend and Share Price
INFORMATION
During the six-month period ended October 31, 2008, there was one dividend
increase in NQF, NUF and NWF. In NFL, the cost of leverage-related borrowing
remained higher than in the other Funds. This impacted the incremental income
available for dividends and led to one dividend cut in this Fund, effective
October 2008.
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, 2008, NQF had
a positive UNII balance while NUF, NFL and NWF had negative UNII balances for
financial statement purposes. All four Funds had positive UNII balances, based
upon our best estimate, for tax purposes.
The Funds' Board of Trustees approved an open-market share repurchase program on
July 10, 2007, for NQF, NUF and NFL and on July 30, 2008, for NWF under which
each Fund may repurchase up to 10% of its common shares. As of October 31, 2008,
NQF, NUF and NFL had cumulatively repurchased 218,700, 147,700 and 174,500
common shares, respectively, representing approximately 1.3%, 1.0% and 1.2% of
each Fund's total common shares outstanding, respectively.
As of October 31, 2008, the Funds' common share prices were trading at discounts
to their common share NAVs as shown in the accompanying chart:
10/31/08 Six-Month Average
Discount Discount
NQF -20.10% - 13.82%
NUF -19.47% - 13.00%
NFL -19.77% - 11.31%
NWF -18.59% - 13.52%
10
NQF
Performance
OVERVIEW
Nuveen Florida
Investment Quality
Municipal Fund
as of October 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 42%
AA 38%
A 9%
BBB 8%
N/R 3%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share
Nov 0.054
Dec 0.054
Jan 0.054
Feb 0.054
Mar 0.054
Apr 0.054
May 0.054
Jun 0.054
Jul 0.054
Aug 0.054
Sep 0.057
Oct 0.057
Line Chart:
Common Share Price Performance -- Weekly Closing Price
11/01/07 13
12.90
12.66
12.31
12.62
12.90
12.79
12.65
12.5803
12.84
13.23
13.39
13.14
13.26
13.23
13.26
12.68
12.59
12.20
12.56
12.24
12.20
12.41
12.51
12.75
12.71
12.62
12.70
12.7999
12.71
12.74
12.66
12.72
12.39
12.19
12.06
12.23
12.24
11.948
11.87
12.03
12.02
11.98
11.97
12.06
12.16
12.01
11.27
10.606
10.2699
7.6201
8.67
9.74
10/31/08 9.54
FUND SNAPSHOT
- ------------------------------------
Common Share Price $9.54
- ------------------------------------
Common Share
Net Asset Value $11.94
- ------------------------------------
Premium/(Discount) to NAV -20.10%
- ------------------------------------
Market Yield 7.17%
- ------------------------------------
Taxable-Equivalent Yield(2) 9.96%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $195,492
- ------------------------------------
Average Effective
Maturity on Securities (Years) 14.65
- ------------------------------------
Leverage-Adjusted Duration 14.81
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
6-Month
Cumulative -23.09% -14.42%
- ------------------------------------
1-Year -22.99% -15.09%
- ------------------------------------
5-Year -4.32% 0.51%
- ------------------------------------
10-Year -0.21% 3.35%
- ------------------------------------
INDUSTRIES
(as a % of total investments)
- ------------------------------------
Tax Obligation/Limited 33.1%
- ------------------------------------
U.S. Guaranteed 19.0%
- ------------------------------------
Transportation 15.6%
- ------------------------------------
Water and Sewer 8.3%
- ------------------------------------
Health Care 8.0%
- ------------------------------------
Tax Obligation/General 5.4%
- ------------------------------------
Other 10.6%
- ------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of October 31, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
11
NUF
Performance
OVERVIEW
Nuveen Florida
Quality Income
Municipal Fund
as of October 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 34%
AA 50%
A 6%
BBB 6%
N/R 4%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Nov 0.055
Dec 0.055
Jan 0.055
Feb 0.055
Mar 0.053
Apr 0.053
May 0.053
Jun 0.053
Jul 0.053
Aug 0.053
Sep 0.054
Oct 0.054
Line Chart:
Common Share Price Performance -- Weekly Closing Price
11/01/07 13.15
13.16
12.96
12.62
12.64
12.98
12.93
12.7899
12.66
12.90
13.31
13.60
13.53
13.60
13.41
13.56
12.99
12.84
12.40
12.63
12.48
12.36
12.52
12.63
12.76
12.74
12.68
12.72
12.852
12.81
12.84
12.80
12.78
12.425
12.24
12.21
12.39
12.42
12.23
12.08
12.18
12.23
12.14
12.16
12.21
12.26
12.20
11.54
10.91
10.56
7.76
8.92
10.276
10/31/08 9.97
FUND SNAPSHOT
- ------------------------------------
Common Share Price $9.97
- ------------------------------------
Common Share
Net Asset Value $12.38
- ------------------------------------
Premium/(Discount) to NAV -19.47%
- ------------------------------------
Market Yield 6.50%
- ------------------------------------
Taxable-Equivalent Yield(2) 9.03%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $175,295
- ------------------------------------
Average Effective
Maturity on Securities (Years) 14.14
- ------------------------------------
Leverage-Adjusted Duration 12.86
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 10/17/91)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
6-Month
Cumulative -19.62% -12.30%
- ------------------------------------
1-Year -20.53% -13.34%
- ------------------------------------
5-Year -3.27% 1.14%
- ------------------------------------
10-Year 0.75% 3.31%
- ------------------------------------
INDUSTRIES
(as a % of total investments)
- ------------------------------------
Tax Obligation/Limited 31.5%
- ------------------------------------
Transportation 13.1%
- ------------------------------------
U.S. Guaranteed 10.0%
- ------------------------------------
Education and Civic
Organizations 8.3%
- ------------------------------------
Health Care 7.3%
- ------------------------------------
Water and Sewer 7.2%
- ------------------------------------
Utilities 6.1%
- ------------------------------------
Tax Obligation/General 6.0%
- ------------------------------------
Housing/Multifamily 5.0%
- ------------------------------------
Other 5.5%
- ------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of October 31, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) 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.
(3) The Fund paid shareholders a capital gains distribution in December 2007 of
$0.0072 per share.
12
NFL
Performance
OVERVIEW
Nuveen Insured
Florida Premium
Income Municipal Fund
as of October 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1), (2)
Insured 85%
U.S. Guaranteed 12%
GNMA Guaranteed 3%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share4
Nov 0.0575
Dec 0.0575
Jan 0.0575
Feb 0.0575
Mar 0.0575
Apr 0.0575
May 0.0575
Jun 0.0575
Jul 0.0575
Aug 0.0575
Sep 0.0575
Oct 0.0555
Line Chart:
Common Share Price Performance -- Weekly Closing Price
11/01/07 13.53
13.53
13.20
12.87
13.08
13.20
13.37
12.97
13.00
13.25
13.74
13.86
13.56
13.77
13.60
13.72
13.21
13.19
12.81
13.4
12.81
12.89
13.05
13.19
13.24
13.25
13.31
13.32
13.26
13.30
13.11
13.184
13.15
12.86
12.75
12.72
12.81
12.704
12.50
12.48
12.53
12.60
12.47
12.48
12.639
12.66
12.55
11.9123
11.10
10.86
7.8501
9.34
10.59
10/31/08 10.47
FUND SNAPSHOT
- ------------------------------------
Common Share Price $10.47
- ------------------------------------
Common Share
Net Asset Value $13.05
- ------------------------------------
Premium/(Discount) to NAV -19.77%
- ------------------------------------
Market Yield 6.36%
- ------------------------------------
Taxable-Equivalent Yield(3) 8.83%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $185,567
- ------------------------------------
Average Effective
Maturity on Securities (Years) 13.98
- ------------------------------------
Leverage-Adjusted Duration 13.17
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/17/92)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
6-Month
Cumulative -18.76% -9.29%
- ------------------------------------
1-Year -17.97% -9.41%
- ------------------------------------
5-Year -3.02% 1.57%
- ------------------------------------
10-Year 1.99% 3.76%
- ------------------------------------
INDUSTRIES
(as a % of total investments)
- ------------------------------------
Tax Obligation/Limited 42.0%
- ------------------------------------
Water and Sewer 23.6%
- ------------------------------------
U.S. Guaranteed 11.9%
- ------------------------------------
Housing/Multifamily 6.8%
- ------------------------------------
Utilities 5.0%
- ------------------------------------
Other 10.7%
- ------------------------------------
INSURERS
(as a % of total Insured investments)
- ------------------------------------
MBIA 37.5%
- ------------------------------------
FGIC 19.5%
- ------------------------------------
FSA 18.2%
- ------------------------------------
AMBAC 14.0%
- ------------------------------------
SYNCORA 7.4%
- ------------------------------------
CIFG 3.4%
- ------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of October 31, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) At least 80% of the Fund's net assets (including net assets attributable to
Preferred shares) are invested in municipal securities that are covered by
insurance or backed by an escrow or trust account containing sufficient
U.S. Government or U.S. Government agency securities or U.S.
Treasury-issued State and Local Government Series securities to ensure the
timely payment of principal and interest. See Notes to Financial
Statements, Footnote 1 - Insurance, for more information.
(3) 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.
(4) The Fund paid shareholders a capital gains distribution in December 2007 of
$0.0640 per share.
13
NWF
Performance
OVERVIEW
Nuveen Insured Florida
Tax-Free Advantage
Municipal Fund
as of October 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1), (2)
Insured 74%
U.S. Guaranteed 23%
GNMA Guaranteed 1%
BBB (Uninsured) 2%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share
Nov 0.0515
Dec 0.0515
Jan 0.0515
Feb 0.0515
Mar 0.0515
Apr 0.0515
May 0.0515
Jun 0.0515
Jul 0.0515
Aug 0.0515
Sep 0.053
Oct 0.053
Line Chart:
Common Share Price Performance -- Weekly Closing Price
11/01/07 12.93
12.73
12.61
12.52
12.22
12.38
12.54
12.32
12.36
12.52
13.0001
13.2401
13.18
13.09
13.14
13.1899
12.62
12.55
12.18
12.53
12.31
12.3085
12.62
12.60
12.61
12.66
12.6901
12.56
12.74
12.838
12.66
12.6679
12.65
12.46
12.16
12.39
12.30
12.246
12.30
11.998
12.09
12.08
11.94
11.91
12.00
12.09
12.05
11.50
10.96
10.43
8.10
9.35
10.158
10/31/08 10.25
FUND SNAPSHOT
- ------------------------------------
Common Share Price $10.25
- ------------------------------------
Common Share
Net Asset Value $12.59
- ------------------------------------
Premium/(Discount) to NAV -18.59%
- ------------------------------------
Market Yield 6.20%
- ------------------------------------
Taxable-Equivalent Yield(3) 8.61%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $48,875
- ------------------------------------
Average Effective
Maturity on Securities (Years) 13.52
- ------------------------------------
Leverage-Adjusted Duration 12.71
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/21/02)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
6-Month
Cumulative -16.37% -8.95%
- ------------------------------------
1-Year -16.82% -7.59%
- ------------------------------------
5-Year -2.27% 2.66%
- ------------------------------------
Since
Inception -1.20% 2.89%
- ------------------------------------
INDUSTRIES
(as a % of total investments)
- ------------------------------------
Tax Obligation/Limited 36.9%
- ------------------------------------
U.S. Guaranteed 23.1%
- ------------------------------------
Water and Sewer 18.3%
- ------------------------------------
Education and Civic
Organizations 9.3%
- ------------------------------------
Transportation 7.4%
- ------------------------------------
Other 5.0%
- ------------------------------------
INSURERS
(as a % of total Insured investments)
- ------------------------------------
MBIA 26.8%
- ------------------------------------
AMBAC 20.6%
- ------------------------------------
FSA 20.2%
- ------------------------------------
FGIC 15.6%
- ------------------------------------
SYNCORA 10.4%
- ------------------------------------
RAAI 6.4%
- ------------------------------------
1 The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA
as of October 31, 2008. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
2 At least 80% of the Fund's net assets (including net assets attributable to
Preferred shares) are invested in municipal securities that are covered by
insurance or backed by an escrow or trust account containing sufficient U.S.
Government or U.S. Government agency securities or U.S. Treasury-issued State
and Local Government Series securities to ensure the timely payment of
principal and interest. See Notes to Financial Statements, Footnote 1 -
Insurance, for more information.
3 Taxable-Equivalent Yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Fund on an after-tax
basis. It is based on a federal income tax rate of 28%. When comparing this
Fund to investments that generate qualified dividend income, the
Taxable-Equivalent Yield is lower.
14
NQF
Nuveen Florida Investment Quality Municipal Fund
Portfolio of INVESTMENTS
October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.9% (1.1% OF TOTAL INVESTMENTS)
$ 5,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 3,627,800
Asset-Backed Refunding Bonds, Series 2002, 5.500%, 5/15/39
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 1.1% (0.7% OF TOTAL INVESTMENTS)
2,000 Broward County Educational Facilities Authority, Florida, Revenue 4/14 at 100.00 BBB 1,573,060
Bonds, Nova Southeastern University, Series 2004B,
5.625%, 4/01/34
575 Osceola County Industrial Development Authority, Florida, 8/11 at 101.00 AA 528,695
Industrial 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 2,101,755
- ------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 0.3% (0.2% OF TOTAL INVESTMENTS)
900 Virgin Islands Public Finance Authority, Revenue Bonds, Refinery 1/15 at 100.00 BBB 605,250
Project Hovensa LLC, Series 2007, 4.700%, 7/01/22
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 13.1% (8.0% OF TOTAL INVESTMENTS)
1,000 Brevard County Health Facilities Authority, Florida, Revenue Bonds, 4/16 at 100.00 A2 668,860
Health First Inc. Project, Series 2005, 5.000%, 4/01/34
Halifax Hospital Medical Center, Florida, Revenue Bonds, Series 2006:
1,000 5.250%, 6/01/26 6/16 at 100.00 BBB+ 795,360
3,625 5.000%, 6/01/38 6/16 at 100.00 BBB+ 2,480,298
3,075 5.500%, 6/01/38 - FSA Insured 6/18 at 100.00 AAA 2,698,466
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 764,080
2,330 5.250%, 10/01/34 10/13 at 100.00 A3 1,670,960
1,185 Hillsborough County Industrial Development Authority, Florida, 10/16 at 100.00 A3 832,901
Hospital Revenue Bonds, Tampa General Hospital, Series 2006,
5.250%, 10/01/41
3,235 Lakeland, Florida, Hospital System Revenue Bonds, Lakeland 11/16 at 100.00 A2 2,500,655
Regional Medical Center, Series 2006, 5.000%, 11/15/26
2,000 Lee Memorial Health System, Florida, Hospital Revenue Bonds, 4/17 at 100.00 AA 1,666,260
Series 2007A, 5.000%, 4/01/32 - MBIA Insured
2,345 Leesburg, Florida, Hospital Revenue Bonds, Leesburg Regional 7/12 at 100.00 BBB+ 2,001,903
Medical Center Project, Series 2002, 5.375%, 7/01/22
3,750 Marion County Hospital District, Florida, Revenue Bonds, Munroe 10/17 at 100.00 A2 2,652,488
Regional Medical Center, Series 2007, 5.000%, 10/01/34
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 BBB- 2,822,593
5,340 5.625%, 12/01/31 12/11 at 101.00 BBB- 3,968,902
- ------------------------------------------------------------------------------------------------------------------------------------
33,295 Total Health Care 25,523,726
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 0.4% (0.3% OF TOTAL INVESTMENTS)
980 Broward County Housing Finance Authority, Florida, Multifamily 5/10 at 101.00 AAA 891,555
Housing Revenue Bonds, Emerald Palms Apartments,
Series 2001A, 5.600%, 7/01/21 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
15
NQF
Nuveen Florida Investment Quality Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.8% (1.8% OF TOTAL INVESTMENTS)
$ 345 Florida Housing Finance Agency, Homeowner Mortgage Revenue 1/09 at 100.00 AA+ $ 348,002
Bonds, New Money and Refunding Issue, Series 1996-2,
6.350%, 7/01/28 (Alternative Minimum Tax)
790 Florida Housing Finance Agency, Homeowner Mortgage Revenue 1/09 at 101.00 AA+ 787,685
Bonds, Series 1997-2, 5.900%, 7/01/29 - MBIA Insured
(Alternative Minimum Tax)
930 Florida Housing Finance Corporation, Homeowner Mortgage 1/16 at 100.00 AA+ 659,407
Revenue Bonds, Series 2006-6, 4.625%, 7/01/31
(Alternative Minimum Tax)
5,000 Florida Housing Finance Corporation, Homeowner Mortgage 1/17 at 100.00 AA+ 3,784,750
Revenue Bonds, Series 2007-3, 5.150%, 7/01/38
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
7,065 Total Housing/Single Family 5,579,844
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.1% (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 948,364
1,565 5.625%, 8/01/34 8/14 at 101.00 N/R 1,168,570
- ------------------------------------------------------------------------------------------------------------------------------------
2,690 Total Long-Term Care 2,116,934
- ------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.8% (1.1% OF TOTAL INVESTMENTS)
5,400 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 3,623,670
Exempt Facilities Remarketed Revenue Bonds, National Gypsum
Company, Apollo Beach Project, Series 2000B, 7.125%, 4/01/30
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 8.8% (5.4% OF TOTAL INVESTMENTS)
185 Florida State Board of Education, Full Faith and Credit Public 6/12 at 101.00 AAA 184,090
Education Capital Outlay Bonds, Series 2002F,
5.000%, 6/01/22 - MBIA Insured
9,230 Florida State Board of Education, Full Faith and Credit, 6/11 at 101.00 AAA 8,571,163
Public Education Capital Outlay Bonds, Series 2001C,
5.125%, 6/01/31 - FGIC Insured
8,000 Florida State Board of Education, Full Faith and Credit, 6/12 at 100.00 AAA 8,417,600
Public Education Capital Outlay Refunding Bonds,
Series 2002D, 5.375%, 6/01/16
- ------------------------------------------------------------------------------------------------------------------------------------
17,415 Total Tax Obligation/General 17,172,853
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 53.9% (33.1% OF TOTAL INVESTMENTS)
1,665 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AA 1,612,203
Series 2005, 5.000%, 10/01/23 - MBIA Insured
230 Flagler County, Florida, Capital Improvement Revenue Bonds, 10/15 at 100.00 AA 202,913
Series 2005, 5.000%, 10/01/30 - MBIA Insured
1,280 Florida Intergovernmental Finance Commission, Capital Revenue 8/11 at 100.00 Aa3 1,264,730
Bonds, Daytona Beach Community Redevelopment Agency,
Series 2001C-1, 5.000%, 2/01/20 - AMBAC Insured
1,685 Florida Municipal Loan Council, Revenue Bonds, Series 2003A, 5/13 at 100.00 AA 1,576,469
5.000%, 5/01/22 - MBIA Insured
5,000 Florida Ports Financing Commission, Revenue Bonds, 12/08 at 100.50 AA 4,178,050
State Transportation Trust Fund, Series 1996, 5.375%, 6/01/27 -
MBIA Insured (Alternative Minimum Tax)
2,980 Florida State Department of Management Services, Certificates 8/15 at 101.00 AA+ 2,897,961
of Participation, Series 2006A, 5.000%, 8/01/23 - MBIA Insured
5,000 Hernando County, Florida, Revenue Bonds, Criminal Justice No Opt. Call AA 5,783,050
Complex Financing Program, Series 1986, 7.650%, 7/01/16 -
FGIC Insured
1,535 Hillsborough County, Florida, Community Investment Tax Revenue 11/13 at 101.00 AA+ 1,488,305
Bonds, Series 2004, 5.000%, 5/01/24 - AMBAC Insured
2,170 Hillsborough County, Florida, Revenue Refunding Bonds, 10/15 at 100.00 AA+ 2,067,489
Tampa Bay Arena, Series 2005, 5.000%, 10/01/25 -
FGIC Insured
16
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 4,990 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/13 at 100.00 AA $ 5,000,479
Bonds, Series 2003, 5.250%, 10/01/21 - MBIA Insured
2,000 Jacksonville, Florida, Guaranteed Entitlement Revenue 10/12 at 100.00 A+ 1,941,360
Refunding and Improvement Bonds, Series 2002,
5.000%, 10/01/22 - FGIC Insured
3,000 Miami-Dade County School Board, Florida, Certificates of 11/16 at 100.00 AA 2,628,360
Participation, 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:
2,090 5.250%, 5/01/16 - RAAI Insured 5/12 at 102.00 BBB+ 2,037,855
1,700 5.625%, 5/01/32 - RAAI Insured 5/12 at 102.00 BBB+ 1,461,966
10,900 Miami-Dade County, Florida, Transit System Sales Surtax 7/18 at 100.00 AAA 9,602,355
Revenue Bonds, Series 2008, 5.000%, 7/01/35 - FSA Insured
1,215 North Dade Community Development District, Florida, Special 5/17 at 100.00 N/R 857,486
Assessment Bonds, Series 2007A, 5.350%, 5/01/38
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 AA 1,473,995
1,225 5.125%, 4/01/21 - AMBAC Insured 4/12 at 100.00 AA 1,191,509
Osceola County, Florida, Transportation Revenue Bonds,
Osceola Parkway, Series 2004:
3,745 5.000%, 4/01/22 - MBIA Insured 4/14 at 100.00 A2 3,651,974
2,000 5.000%, 4/01/23 - MBIA Insured 4/14 at 100.00 A2 1,867,260
6,090 Palm Beach County School Board, Florida, Certificates of 8/16 at 100.00 AAA 4,522,425
Participation, Drivers Trust 2089, 9.181%, 8/01/31 -
FSA Insured (IF)
4,000 Palm Beach County School Board, Florida, Certificates of 8/12 at 100.00 AAA 3,674,760
Participation, Series 2002D, 5.000%, 8/01/28 - FSA Insured
2,560 Palm Beach County School Board, Florida, Certificates of 8/14 at 100.00 AA 2,377,779
Participation, Series 2004A, 5.000%, 8/01/23 - FGIC Insured
5,000 Palm Beach County School Board, Florida, Certificates of 8/17 at 100.00 AA 4,514,200
Participation, Series 2007E, 5.000%, 8/01/27 - MBIA Insured
4,490 Palm Beach County, Florida, Public Improvement Revenue 6/15 at 100.00 AA+ 4,205,828
Bonds, Biomedical Research Park Project, Series 2005A,
5.000%, 6/01/25 - AMBAC Insured
2,500 Polk County School District, Florida, Sales Tax Revenue Bonds, 10/14 at 100.00 AAA 2,567,600
Series 2004, 5.250%, 10/01/18 - FSA Insured
1,000 Port Saint Lucie. Florida, Special Assessment Revenue Bonds, 7/17 at 100.00 AA 840,440
Southwest Annexation District 1B, Series 2007, 5.000%, 7/01/33 -
MBIA Insured
820 Rivercrest Community Development District, Florida, Special 5/18 at 100.00 A- 685,241
Assessment Bonds, Series 2007, 5.000%, 5/01/30 - RAAI Insured
2,750 Saint Johns County, Florida, Transportation Improvement Revenue 10/13 at 100.00 AA 2,651,825
Bonds, Series 2003, 5.000%, 10/01/23 - AMBAC Insured
3,000 School Board of Duval County, Florida, Certificates of Participation, 7/17 at 100.00 Aaa 2,633,550
Master Lease Program, Series 2008, 5.000%, 7/01/33 -
FSA Insured
635 Sonoma Bay Community Development District, Florida, Special 5/15 at 100.00 N/R 456,006
Assessment Bonds, Series 2005A, 5.450%, 5/01/36
7,500 South Florida Water Management District, Certificates of 10/16 at 100.00 AA+ 5,945,250
Participation, Series 2006, Trust 1036, 6.508%, 10/01/36 -
AMBAC Insured (IF)
5,000 South Florida Water Management District, Certificates of 10/16 at 100.00 AA+ 4,481,550
Participation, Series 2006, 5.000%, 10/01/36 - AMBAC Insured
17
NQF
Nuveen Florida Investment Quality Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2008 (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 AA $ 1,263,363
2,785 5.750%, 10/01/25 - MBIA Insured No Opt. Call AA 2,725,930
8,605 Volusia County School Board, Florida, Sales Tax Revenue Bonds, 10/12 at 100.00 AAA 9,012,877
Series 2002, 5.375%, 10/01/15 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
113,890 Total Tax Obligation/Limited 105,344,393
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 25.4% (15.6% OF TOTAL INVESTMENTS)
8,900 Broward County, Florida, Airport System Revenue Bonds, 10/11 at 101.00 AA 7,338,851
Series 2001-J1, 5.250%, 10/01/26 - AMBAC Insured
(Alternative Minimum Tax)
2,150 Broward County, Florida, Airport System Revenue Bonds, 10/14 at 100.00 AA 1,991,889
Series 2004L, 5.000%, 10/01/23 - AMBAC Insured
6,000 Florida State Turnpike Authority, Turnpike Revenue Bonds, 7/13 at 101.00 Aa2 5,446,920
Department of Transportation, Series 2003C, 5.000%, 7/01/33
12,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/09 at 101.00 Aa3 9,547,080
Revenue Bonds, Series 1999A, 5.125%, 10/01/28 -
FGIC Insured (Alternative Minimum Tax)
4,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 3,459,320
Revenue Bonds, Series 2002B, 5.125%, 10/01/21 -
FSA Insured (Alternative Minimum Tax)
2,500 Lee County, Florida, Airport Revenue Bonds, Series 2006, 10/15 at 100.00 AAA 2,250,150
5.000%, 10/01/33 - FSA Insured
6,690 Miami-Dade County Expressway Authority, Florida, Toll System 7/14 at 100.00 AA 6,608,114
Revenue Bonds, Series 2004B, 5.000%, 7/01/20 - FGIC Insured
1,750 Miami-Dade County Industrial Development Authority, Florida, 10/09 at 101.00 Aaa 1,587,443
Industrial Development Revenue Bonds, Airis Miami II LLC -
Miami International Airport, Series 1999, 6.000%, 10/15/25 -
AMBAC Insured (Alternative Minimum Tax)
5,390 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 A2 5,078,781
International Airport, Series 2002, 5.750%, 10/01/18 -
FGIC Insured (Alternative Minimum Tax)
1,325 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/15 at 100.00 A2 948,939
International Airport, Series 2005A, 5.000%, 10/01/38 -
CIFG Insured (Alternative Minimum Tax)
5,360 Tampa-Hillsborough County Expressway Authority, Florida, 7/15 at 101.00 AA 5,438,042
Revenue Bonds, Series 2005, 5.000%, 7/01/16 -
AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
56,065 Total Transportation 49,695,529
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 30.9% (19.0% OF TOTAL INVESTMENTS) (4)
12,800 Escambia County Health Facilities Authority, Florida, Revenue 11/09 at 101.00 AAA 13,456,636
Bonds, Ascension Health Credit Group, Series 1999A-2,
6.000%, 11/15/31 (Pre-refunded 11/15/09)
4,600 Highlands County Health Facilities Authority, Florida, Hospital 11/11 at 101.00 A1 (4) 5,040,634
Revenue 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 AA (4) 2,451,674
3,305 5.000%, 4/01/22 (Pre-refunded 4/01/14) - AMBAC Insured 4/14 at 100.00 AA (4) 3,538,333
3,000 Miami-Dade County Health Facility Authority, Florida, Hospital 8/11 at 101.00 AAA 3,188,580
Revenue Refunding Bonds, Miami Children's Hospital,
Series 2001A, 5.125%, 8/15/26 (Pre-refunded 8/15/11) -
AMBAC Insured
1,175 Naples, Florida, Water and Sewer Revenue Bonds, Series 2002, 9/12 at 100.00 Aa2 (4) 1,256,463
5.000%, 9/01/14 (Pre-refunded 9/01/12)
North Broward Hospital District, Florida, Revenue and Improvement
Bonds, Series 2001:
5,450 6.000%, 1/15/31 (Pre-refunded 1/15/11) 1/11 at 101.00 A (4) 5,864,527
550 6.000%, 1/15/31 (Pre-refunded 1/15/11) 1/11 at 101.00 A (4) 591,833
18
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 6,000 Orange County Health Facilities Authority, Florida, Hospital 11/10 at 101.00 A1 (4) $ 6,521,100
Revenue Bonds, Adventist Health System/Sunbelt Obligated Group,
Series 2000, 6.500%, 11/15/30 (Pre-refunded 11/15/10)
3,695 Orange County Health Facilities Authority, Florida, Hospital 12/12 at 100.00 AAA 4,041,332
Revenue Bonds, Orlando Regional Healthcare System, Series 2002,
5.750%, 12/01/27 (Pre-refunded 12/01/12)
4,295 Orlando Utilities Commission, Florida, Water and Electric 10/12 at 100.00 Aa1 (4) 4,619,058
Revenue Refunding Bonds, Series 2002C, 5.250%, 10/01/18
(Pre-refunded 10/01/12)
3,570 Seminole County, Florida, Water and Sewer Revenue Refunding No Opt. Call AAA 3,954,560
and Improvement Bonds, Series 1992, 6.000%, 10/01/19 -
MBIA Insured (ETM)
5,375 South Broward Hospital District, Florida, Hospital Revenue Bonds, 5/12 at 101.00 AA- (4) 5,846,764
Series 2002, 5.625%, 5/01/32 (Pre-refunded 5/01/12)
- ------------------------------------------------------------------------------------------------------------------------------------
56,105 Total U.S. Guaranteed 60,371,494
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.7% (4.7% OF TOTAL INVESTMENTS)
4,330 Hillsborough County Industrial Development Authority, Florida, 10/12 at 100.00 Baa2 4,070,113
Pollution Control Revenue Bonds, Tampa Electric Company
Project, Series 2002, 5.100%, 10/01/13
1,050 Jacksonville Beach, Florida, Utility Revenue Refunding Bonds, 10/10 at 100.00 Aa3 1,062,359
Series 2002, 5.000%, 4/01/17 - AMBAC Insured
4,250 Lakeland, Florida, Energy System Revenue Refunding Bonds, No Opt. Call AAA 4,568,623
Series 1999C, 6.050%, 10/01/11 - FGIC Insured
5,000 Orlando Utilities Commission, Florida, Water and Electric No Opt. Call Aa1 5,294,500
Revenue Refunding Bonds, Series 1992, 6.000%, 10/01/10
- ------------------------------------------------------------------------------------------------------------------------------------
14,630 Total Utilities 14,995,595
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.4% (8.3% OF TOTAL INVESTMENTS)
3,010 Cocoa, Florida, Water and Sewerage System Revenue Refunding No Opt. Call AA 2,878,252
Bonds, Series 2003, 5.500%, 10/01/23 - AMBAC Insured
1,000 Jacksonville, Florida, Water and Sewer Revenue Bonds, 2/09 at 100.00 AA 941,590
United Water Florida Project, Series 1995, 6.350%, 8/01/25 -
AMBAC Insured (Alternative Minimum Tax)
1,525 Lee County, Florida, Water and Sewer Revenue Refunding Bonds, 10/13 at 100.00 A2 1,520,867
Series 2003A, 5.000%, 10/01/20 - MBIA Insured
3,300 Miami-Dade County, Florida, Water and Sewer System Revenue 10/09 at 101.00 A+ 3,057,648
Bonds, Series 1999A, 5.000%, 10/01/29 - FGIC Insured
3,270 Palm Beach County, Florida, Water and Sewer Revenue Bonds, 10/16 at 100.00 Aaa 2,500,471
Series 2006A, Trust 2622, 9.486%,10/01/36 (IF)
5,000 Palm Beach County, Florida, Water and Sewer Revenue Bonds, 10/16 at 100.00 AAA 4,621,200
Series 2006A, 5.000%, 10/01/31
2,060 Polk County, Florida, Utility System Revenue Bonds, 10/13 at 100.00 A2 2,018,100
Series 2003, 5.250%, 10/01/22 - FGIC Insured
2,780 Riviera Beach, Palm Beach County, Florida, Water and Sewerage 10/14 at 100.00 N/R 2,518,541
Revenue Bonds, Series 2004, 5.000%, 10/01/24 - FGIC Insured
19
NQF
Nuveen Florida Investment Quality Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,275 Sarasota County, Florida, Utility System Revenue Bonds, 10/15 at 100.00 AA $ 2,109,380
Series 2005A, 5.000%, 10/01/27 - FGIC Insured
1,680 Seminole County, Florida, Water and Sewer Revenue Refunding No Opt. Call AA 1,794,694
and Improvement Bonds, Series 1992, 6.000%, 10/01/19 -
MBIA Insured
Winter Springs, Florida, Water and Sewer Revenue Refunding
Bonds, Series 2001:
700 5.250%, 4/01/16 - MBIA Insured 4/11 at 101.00 AA 710,052
1,585 5.000%, 4/01/20 - MBIA Insured 4/11 at 101.00 AA 1,545,914
- ------------------------------------------------------------------------------------------------------------------------------------
28,185 Total Water and Sewer 26,216,709
- ------------------------------------------------------------------------------------------------------------------------------------
$ 344,195 Total Investments (cost $343,875,448) - 162.6% 317,867,107
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.9% 9,624,499
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (67.5)% (5) (132,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 195,491,606
====================================================================================================================
(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.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, FSA, MBIA,
RAAI and SYNCORA as of October 31, 2008. Please see the
Portfolio Manager's Commentary for an expanded discussion of
the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings
of the underlying insurers both during the period and after
period end.
(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) Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 41.5%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
20
NUF
Nuveen Florida Quality Income Municipal Fund
Portfolio of INVESTMENTS
October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 13.7% (8.3% 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 $ 839,890
500 5.625%, 4/01/34 4/14 at 100.00 BBB 393,265
2,000 Florida Board of Education, Lottery Revenue Bonds, Series 2001B, 7/11 at 101.00 AAA 1,989,380
5.000%, 7/01/20 - FGIC Insured
14,985 Florida State Board of Education, State University System Revenue 7/15 at 101.00 AA 13,705,431
Bonds, Series 2006A, 5.000%, 7/01/30 - FGIC Insured
2,580 Florida State Education System, Housing Facility Revenue No Opt. Call AA 2,633,380
Bonds, Florida International University, Series 2004A,
5.000%, 7/01/14 - MBIA Insured
2,345 FSU Financial Assistance Inc., Florida, General Revenue Bonds, 10/14 at 100.00 AA 2,417,507
Educational and Athletic Facilities Improvements, Series 2004,
5.000%, 10/01/16 - AMBAC Insured
2,275 University of Central Florida, Certificates of Participation, 10/14 at 100.00 AA 2,025,273
Athletic Association, Series 2004A, 5.125%, 10/01/21 -
FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
25,685 Total Education and Civic Organizations 24,004,126
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 12.1% (7.3% OF TOTAL INVESTMENTS)
1,000 Brevard County Health Facilities Authority, Florida, Revenue Bonds, 4/16 at 100.00 A2 668,860
Health First Inc. Project, Series 2005, 5.000%, 4/01/34
1,500 Citrus County Hospital Board, Florida, Revenue Refunding Bonds, 8/13 at 100.00 Baa3 1,331,955
Citrus 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+ 795,360
3,240 5.000%, 6/01/38 6/16 at 100.00 BBB+ 2,216,873
2,310 5.500%, 6/01/38 - FSA Insured 6/18 at 100.00 AAA 2,027,141
1,000 Highlands County Health Facilities Authority, Florida, Hospital 11/15 at 100.00 A+ 767,180
Revenue Bonds, Adventist Health System, Series 2005C,
5.000%, 11/15/31
Hillsborough County Industrial Development Authority, Florida,
Hospital Revenue Bonds, Tampa General Hospital, Series 2003B:
500 5.250%, 10/01/28 10/13 at 100.00 A3 382,040
1,590 5.250%, 10/01/34 10/13 at 100.00 A3 1,140,269
1,180 Hillsborough County Industrial Development Authority, Florida, 10/16 at 100.00 A3 829,387
Hospital Revenue Bonds, Tampa General Hospital, Series 2006,
5.250%, 10/01/41
2,000 Hillsborough County Industrial Development Authority, Florida, 10/13 at 100.00 A3 1,599,980
Hospital Revenue Refunding Bonds, Tampa General Hospital,
Series 2003A, 5.250%, 10/01/24
3,000 Lakeland, Florida, Hospital System Revenue Bonds, Lakeland 11/16 at 100.00 A2 2,146,980
Regional Medical Center, Series 2006, 5.000%, 11/15/32
1,500 Lee Memorial Health System, Florida, Hospital Revenue Bonds, 4/17 at 100.00 AA 1,249,695
Series 2007A, 5.000%, 4/01/32 - MBIA Insured
3,430 Leesburg, Florida, Hospital Revenue Refunding Bonds, Leesburg No Opt. Call BBB+ 3,352,379
Regional Medical Center Project, Series 2003, 5.000%, 7/01/12
3,750 Marion County Hospital District, Florida, Revenue Bonds, Munroe 10/17 at 100.00 A2 2,652,488
Regional Medical Center, Series 2007, 5.000%, 10/01/34
- ------------------------------------------------------------------------------------------------------------------------------------
27,000 Total Health Care 21,160,587
- ------------------------------------------------------------------------------------------------------------------------------------
21
NUF
Nuveen Florida Quality Income Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 8.2% (5.0% OF TOTAL INVESTMENTS)
Broward County Housing Finance Authority, Florida, GNMA
Collateralized Multifamily Housing Revenue Refunding Bonds,
Tamarac Pointe Apartments, Series 1996:
$ 1,500 6.250%, 7/01/26 1/09 at 100.00 AAA $ 1,500,045
1,000 6.300%, 1/01/32 1/09 at 100.00 AAA 999,880
1,000 Florida Housing Finance Agency, Housing Revenue Bonds, 4/09 at 100.00 AA 938,040
Holly Cove Apartments, Series 1995F, 6.150%, 10/01/25 -
AMBAC Insured (Alternative Minimum Tax)
5,790 Florida Housing Finance Corporation, FNMA Revenue Bonds, 10/10 at 102.00 Aaa 5,095,316
Villa de Mallorca Apartments, Series 2000H-1, 6.000%, 7/01/33
(Alternative Minimum Tax)
3,170 Florida Housing Finance Corporation, Housing Revenue Refunding 12/08 at 102.00 AA 2,696,148
Bonds, Hunters Ridge at Deerwood Apartments, Series 1998-0,
5.300%, 12/01/28
3,630 Miami-Dade County Housing Finance Authority, Florida, Multifamily 1/11 at 102.00 AAA 3,229,865
Housing Revenue Bonds, Sunset Bay Apartments, Series 2000-5A,
5.950%, 7/01/30 - FSA Insured (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
16,090 Total Housing/Multifamily 14,459,294
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.7% (1.6% OF TOTAL INVESTMENTS)
370 Broward County Housing Finance Authority, Florida, Single 4/10 at 25.36 Aaa 60,155
Family Mortgage Revenue Bonds, Series 2001C,
0.000%, 4/01/33 (Alternative Minimum Tax)
260 Broward County Housing Finance Authority, Florida, Single Family 4/09 at 25.51 Aaa 64,956
Mortgage Revenue Refunding Bonds, Series 2000B,
0.000%, 4/01/29 (Alternative Minimum Tax)
185 Florida Housing Finance Agency, GNMA Collateralized Home No Opt. Call AAA 196,797
Ownership Revenue Refunding Bonds, Series 1987G-1,
8.595%, 11/01/17
930 Florida Housing Finance Corporation, Homeowner Mortgage 1/16 at 100.00 AA+ 659,407
Revenue Bonds, Series 2006-6, 4.625%, 7/01/31
(Alternative Minimum Tax)
5,000 Florida Housing Finance Corporation, Homeowner Mortgage 1/17 at 100.00 AA+ 3,784,750
Revenue Bonds, Series 2007-3, 5.150%, 7/01/38
(Alternative Minimum Tax)
30 Miami-Dade County Housing Authority, Florida, Home Owner 4/09 at 100.75 Aaa 29,596
Mortgage Revenue Bonds, Series 1999A-1,
5.550%, 10/01/19 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
6,775 Total Housing/Single Family 4,795,661
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.6% (2.8% OF TOTAL INVESTMENTS)
7,285 Atlantic Beach, Florida, Healthcare Facilities Revenue Refunding 10/09 at 101.00 N/R 5,966,196
Bonds, 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 948,364
1,570 5.625%, 8/01/34 8/14 at 101.00 N/R 1,172,303
- ------------------------------------------------------------------------------------------------------------------------------------
9,980 Total Long-Term Care 8,086,863
- ------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.8% (1.1% OF TOTAL INVESTMENTS)
4,600 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 3,086,830
Exempt Facilities Remarketed Revenue Bonds, National Gypsum
Company, Apollo Beach Project, Series 2000B, 7.125%, 4/01/30
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 9.8% (6.0% OF TOTAL INVESTMENTS)
13,925 Florida State Board of Education, Full Faith and Credit Public 6/12 at 101.00 AAA 14,003,673
Education Capital Outlay Bonds, Series 2002B, 5.000%, 6/01/20 -
MBIA Insured
3,240 Reedy Creek Improvement District, Orange and Osceola 4/14 at 100.00 AA 3,192,793
Counties, Florida, General Obligation Bonds, Series 2004A,
5.000%, 6/01/22 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
17,165 Total Tax Obligation/General 17,196,466
- ------------------------------------------------------------------------------------------------------------------------------------
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 51.8% (31.5% OF TOTAL INVESTMENTS)
$ 1,000 Alachua County School Board, Florida, Certificates of Participation, 7/11 at 101.00 Aa3 $ 978,820
Series 2001, 5.000%, 7/01/21 - AMBAC Insured
1,055 Bay County School Board, Florida, Certificates of Participation, 7/14 at 100.00 Aa3 960,715
Series 2004, 5.000%, 7/01/24 - AMBAC Insured
3,870 Broward County School Board, Florida, Certificates of Participation, 7/14 at 100.00 AAA 3,829,829
Series 2004C, 5.250%, 7/01/20 - FSA Insured
1,500 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AA 1,452,435
Series 2005, 5.000%, 10/01/23 - MBIA Insured
1,290 Escambia County, Florida, Tourist Development Revenue Refunding 10/12 at 100.00 AA 1,298,604
Bonds, Series 2002, 5.000%, 10/01/18 - MBIA Insured
4,000 Flagler County, Florida, Capital Improvement Revenue Bonds, 10/15 at 100.00 AA 3,528,920
Series 2005, 5.000%, 10/01/30 - MBIA Insured
8,425 Florida Department of Environmental Protection, Florida Forever 7/13 at 101.00 AA 8,436,795
Revenue Bonds, Series 2003C, 5.000%, 7/01/19 -
AMBAC Insured
Florida Municipal Loan Council, Revenue Bonds, Series 2000B:
1,040 0.000%, 11/01/25 - MBIA Insured No Opt. Call AA 357,562
1,590 0.000%, 11/01/26 - MBIA Insured No Opt. Call AA 508,037
3,000 Florida State Department of Management Services, Certificates 8/15 at 101.00 AA+ 2,917,410
of Participation, Series 2006A, 5.000%, 8/01/23 - MBIA Insured
1,430 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/11 at 100.00 AA 1,384,655
Bonds, Series 2001, 5.000%, 10/01/23 - AMBAC Insured
2,090 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/13 at 100.00 AA 2,036,747
Bonds, Series 2003, 5.000%, 10/01/22 - MBIA Insured
3,145 Jacksonville, Florida, Excise Taxes Revenue Refunding Bonds, 10/13 at 100.00 AA 2,869,309
Series 2003C, 5.250%, 10/01/18 - MBIA Insured
(Alternative Minimum Tax)
2,230 Jacksonville, Florida, Guaranteed Entitlement Revenue Refunding 10/12 at 100.00 A+ 2,167,895
and Improvement Bonds, Series 2002, 5.000%, 10/01/21 -
FGIC Insured
2,750 Jacksonville, Florida, Local Government Sales Tax Revenue 10/12 at 100.00 AA+ 2,792,488
Refunding and Improvement Bonds, Series 2002,
5.375%, 10/01/17 - FGIC Insured
1,000 Jacksonville, Florida, Local Government Sales Tax Revenue No Opt. Call AA+ 1,069,060
Refunding Bonds, Series 2001, 5.500%, 10/01/14 - FGIC Insured
Lake County School Board, Florida, Certificates of Participation,
Series 2004A:
1,190 5.000%, 7/01/20 - AMBAC Insured 7/14 at 100.00 AA 1,142,138
1,340 5.000%, 7/01/22 - AMBAC Insured 7/14 at 100.00 AA 1,260,163
1,470 5.000%, 7/01/24 - AMBAC Insured 7/14 at 100.00 AA 1,358,456
5,130 Manatee County School District, Florida, Sales Tax Revenue 10/13 at 100.00 AA 5,193,304
Bonds, Series 2003, 5.000%, 10/01/17 - AMBAC Insured
Miami-Dade County, Florida, Beacon Tradeport Community
Development District, Special Assessment Bonds, Commercial
Project, Series 2002A:
1,975 5.500%, 5/01/22 - RAAI Insured 5/12 at 102.00 BBB+ 1,805,901
850 5.625%, 5/01/32 - RAAI Insured 5/12 at 102.00 BBB+ 730,983
5,000 Miami-Dade County, Florida, Transit System Sales Surtax Revenue 7/18 at 100.00 AAA 4,404,750
Bonds, Series 2008, 5.000%, 7/01/35 - FSA Insured
1,200 North Dade Community Development District, Florida, Special 5/17 at 100.00 N/R 846,900
Assessment Bonds, Series 2007A, 5.350%, 5/01/38
2,475 Northern Palm Beach County Improvement District, Florida, 8/10 at 102.00 BBB+ 2,418,446
Revenue Bonds, Water Control and Improvement Development
Unit 19, Series 2000, 6.100%, 8/01/21 - RAAI Insured
2,000 Opa-Locka, Florida, Capital Improvement Revenue Bonds, 1/09 at 100.00 AA 1,999,980
Series 1994, 6.125%, 1/01/24 - FGIC Insured
23
NUF
Nuveen Florida Quality Income Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,440 Orange County School Board, Florida, Certificates of Participation, 8/14 at 100.00 Aa3 $ 2,294,015
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 AA 1,644,687
3,400 5.125%, 1/01/23 - FGIC Insured 1/13 at 100.00 AA 3,278,654
2,040 Palm Beach County School Board, Florida, Certificates of 8/12 at 100.00 AAA 2,043,958
Participation, Series 2002D, 5.250%, 8/01/21 - FSA Insured
1,500 Palm Beach County School Board, Florida, Certificates of 8/14 at 100.00 AA 1,404,795
Participation, Series 2004A, 5.000%, 8/01/22 - FGIC Insured
1,000 Port Saint Lucie. Florida, Special Assessment Revenue Bonds, 7/17 at 100.00 AA 840,440
Southwest Annexation District 1B, Series 2007,
5.000%, 7/01/33 - MBIA Insured
1,350 Port St. Lucie, Florida, Sales Tax Revenue Bonds, Series 2003, 9/13 at 100.00 AA 1,317,452
5.000%, 9/01/21 - MBIA Insured
820 Rivercrest Community Development District, Florida, Special 5/18 at 100.00 A- 685,241
Assessment Bonds, Series 2007, 5.000%, 5/01/30 - RAAI Insured
2,000 School Board of Duval County, Florida, Certificates of Participation, 7/17 at 100.00 Aaa 1,755,700
Master Lease Program, Series 2008, 5.000%, 7/01/33 -
FSA Insured
5,000 Sumter County, Florida, Capital Improvement Revenue Bonds, 6/16 at 100.00 AA 4,471,450
Series 2006, 5.000%, 6/01/36 - AMBAC Insured
11,815 Volusia County School Board, Florida, Sales Tax Revenue Bonds, 10/12 at 100.00 AAA 12,388,500
Series 2002, 5.375%, 10/01/14 - FSA Insured
1,000 Volusia County, Florida, Tax Revenue Bonds, Tourist Development, 12/14 at 100.00 Aaa 950,100
Series 2004, 5.000%, 12/01/24 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
96,075 Total Tax Obligation/Limited 90,825,294
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 21.5% (13.1% OF TOTAL INVESTMENTS)
2,225 Broward County, Florida, Airport System Revenue Bonds, 10/11 at 101.00 AA 1,934,971
Series 2001-J1, 5.250%, 10/01/21 - AMBAC Insured
(Alternative Minimum Tax)
4,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 3,459,320
Revenue Bonds, Series 2002B, 5.125%, 10/01/21 -
FSA Insured (Alternative Minimum Tax)
2,500 Lee County, Florida, Airport Revenue Bonds, Series 2006, 10/15 at 100.00 AAA 2,250,150
5.000%, 10/01/33 - FSA Insured
1,000 Lee County, Florida, Transportation Facilities Revenue Bonds, No Opt. Call AA 1,029,610
Series 2004B, 5.000%, 10/01/14 - AMBAC Insured
Miami-Dade County Expressway Authority, Florida, Toll System
Revenue Bonds, Series 2004B:
3,955 5.250%, 7/01/17 - FGIC Insured 7/14 at 100.00 AA 4,080,492
2,000 5.250%, 7/01/18 - FGIC Insured 7/14 at 100.00 AA 2,023,180
2,000 5.000%, 7/01/23 -FGIC Insured 7/14 at 100.00 AA 1,858,180
4,500 Miami-Dade County Expressway Authority, Florida, Toll System 7/16 at 100.00 AA 3,811,680
Revenue Bonds, Series 2006, 5.000%, 7/01/37 - AMBAC Insured
2,000 Miami-Dade County Expressway Authority, Florida, Toll System 7/11 at 101.00 A3 1,916,520
Revenue Refunding Bonds, Series 2001, 5.000%, 7/01/21 -
FGIC Insured
7,500 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 4/09 at 101.00 AA 6,054,900
International Airport, Series 1998A, 5.000%, 10/01/24 -
FGIC Insured (Alternative Minimum Tax)
4,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 4/09 at 101.00 AA 3,282,520
International Airport, Series 1998C, 5.000%, 10/01/23 -
MBIA Insured (Alternative Minimum Tax)
1,320 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/15 at 100.00 A2 945,358
International Airport, Series 2005A, 5.000%, 10/01/38 -
CIFG Insured (Alternative Minimum Tax)
5,000 Tampa-Hillsborough County Expressway Authority, Florida, 7/15 at 101.00 AA 5,072,800
Revenue Bonds, Series 2005, 5.000%, 7/01/16 -
AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
42,000 Total Transportation 37,719,681
- ------------------------------------------------------------------------------------------------------------------------------------
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 16.4% (10.0% OF TOTAL INVESTMENTS) (4)
$ 1,500 Bradford County Health Facility Authority, Florida, Revenue No Opt. Call AAA $ 1,653,015
Refunding Bonds, Santa Fe Healthcare Inc., Series 1993,
6.050%, 11/15/16 (ETM)
750 Gainesville, Florida, Utilities System Revenue Bonds, 10/13 at 100.00 AA (4) 817,808
Series 2003A, 5.250%, 10/01/21 (Pre-refunded 10/01/13)
2,600 Highlands County Health Facilities Authority, Florida, Hospital 11/11 at 101.00 A1 (4) 2,849,054
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2001A, 6.000%, 11/15/31 (Pre-refunded 11/15/11)
North Broward Hospital District, Florida, Revenue and Improvement
Bonds, Series 2001:
8,175 6.000%, 1/15/31 (Pre-refunded 1/15/11) 1/11 at 101.00 A (4) 8,796,791
825 6.000%, 1/15/31 (Pre-refunded 1/15/11) 1/11 at 101.00 A (4) 887,750
5,000 Orange County Health Facilities Authority, Florida, Hospital 11/12 at 101.00 A2 (4) 5,414,550
Revenue 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 12/12 at 100.00 AAA 3,281,190
Revenue Bonds, Orlando Regional Healthcare System,
Series 2002, 5.750%, 12/01/32 (Pre-refunded 12/01/12) -
Insured
4,625 South Broward Hospital District, Florida, Hospital Revenue Bonds, 5/12 at 101.00 AA- (4) 5,030,936
Series 2002, 5.625%, 5/01/32 (Pre-refunded 5/01/12)
- ------------------------------------------------------------------------------------------------------------------------------------
26,475 Total U.S. Guaranteed 28,731,094
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 10.1% (6.1% OF TOTAL INVESTMENTS)
4,800 Hillsborough County Industrial Development Authority, Florida, 10/12 at 100.00 Baa2 4,511,904
Pollution Control Revenue Bonds, Tampa Electric Company
Project, Series 2002, 5.100%, 10/01/13
9,440 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 9,692,426
Refunding Bonds, 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 1,263,408
Refunding Bonds, Series 2001, 5.250%, 10/01/17
445 Orlando Utilities Commission, Florida, Water and Electric 10/12 at 100.00 Aa1 460,833
Revenue Refunding Bonds, Series 2002C, 5.250%, 10/01/17
650 Reedy Creek Improvement District, Florida, Utility Revenue Bonds, 10/15 at 100.00 AA 595,049
Series 2005-1, 5.000%, 10/01/25 - AMBAC Insured
1,170 Tallahassee, Florida, Consolidated Utility System Revenue Bonds, 10/15 at 100.00 AA 1,132,326
Series 2005, 5.000%, 10/01/25 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
17,725 Total Utilities 17,655,946
- ------------------------------------------------------------------------------------------------------------------------------------
25
NUF
Nuveen Florida Quality Income Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 11.9% (7.2% OF TOTAL INVESTMENTS)
$ 1,500 Hollywood, Florida, Water and Sewer Revenue Refunding and 10/13 at 100.00 Aaa $ 1,481,400
Improvement 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 AA 3,274,208
5,090 5.000%, 10/01/19 - FGIC Insured 10/13 at 100.00 AA 5,120,642
3,000 5.000%, 10/01/23 - FGIC Insured 10/13 at 100.00 AA 2,904,870
1,065 Lee County Industrial Development Authority, Florida, Utilities 11/12 at 100.00 AA 934,122
Revenue Bonds, Bonita Springs Utilities Inc. Project, Series 2002,
5.000%, 11/01/19 - MBIA Insured (Alternative Minimum Tax)
3,275 Palm Beach County, Florida, Water and Sewer Revenue Bonds, 10/16 at 100.00 Aaa 2,504,294
Series 2006A, Trust 2622, 9.486%,10/01/36 (IF)
5,000 Palm Beach County, Florida, Water and Sewer Revenue Bonds, 10/16 at 100.00 AAA 4,621,200
Series 2006A, 5.000%, 10/01/31
- ------------------------------------------------------------------------------------------------------------------------------------
22,165 Total Water and Sewer 20,840,736
- ------------------------------------------------------------------------------------------------------------------------------------
$ 311,735 Total Investments (cost $311,873,702) - 164.6% 288,562,578
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 3,732,249
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (66.7)% (5) (117,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 175,294,827
====================================================================================================================
(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.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, FSA, MBIA,
RAAI and SYNCORA as of October 31, 2008. Please see the
Portfolio Manager's Commentary for an expanded discussion of
the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings
of the underlying insurers both during the period and after
period end.
(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) Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 40.5%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
26
NFL
Nuveen Insured Florida Premium Income Municipal Fund
Portfolio of INVESTMENTS
October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.6% (2.9% OF TOTAL INVESTMENTS)
$ 10,255 Tampa, Florida, Revenue Bonds, University of Tampa, Series 2006, 4/16 at 100.00 N/R $ 8,458,427
5.000%, 4/01/35 - CIFG Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 3.9% (2.5% OF TOTAL INVESTMENTS)
2,000 Brevard County Health Facilities Authority, Florida, Hospital 4/09 at 100.00 AA 2,000,300
Revenue Bonds, Holmes Regional Medical Center Project,
Series 1996, 5.625%, 10/01/14 - MBIA Insured
1,915 Halifax Hospital Medical Center, Florida, Revenue Bonds, 6/18 at 100.00 AAA 1,680,508
Series 2006, 5.500%, 6/01/38 - FSA Insured
2,500 Hillsborough County Industrial Development Authority, Florida, No Opt. Call AA 2,764,450
Industrial Development Revenue Bonds, University Community
Hospital, Series 1994, 6.500%, 8/15/19 - MBIA Insured
1,000 Lee Memorial Health System, Florida, Hospital Revenue Bonds, 4/17 at 100.00 AA 833,130
Series 2007A, 5.000%, 4/01/32 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
7,415 Total Health Care 7,278,388
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 10.7% (6.8% OF TOTAL INVESTMENTS)
975 Broward County Housing Finance Authority, Florida, GNMA 12/08 at 101.00 Aaa 893,217
Collateralized Multifamily Housing Revenue Refunding Bonds,
Pompano Oaks Apartments, Series 1997, 6.000%, 12/01/27
(Alternative Minimum Tax)
Collier County Housing Finance Authority, Florida, Multifamily
Housing Revenue Bonds, Saxon Manor Isles Project, Series 1998B:
1,260 5.350%, 9/01/18 - FSA Insured (Alternative Minimum Tax) 3/09 at 100.00 AAA 1,191,393
1,000 5.400%, 9/01/23 - FSA Insured (Alternative Minimum Tax) 3/09 at 100.00 AAA 887,050
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) 3/09 at 100.00 AAA 983,372
1,400 5.400%, 9/01/23 - FSA Insured (Alternative Minimum Tax) 3/09 at 100.00 AAA 1,241,870
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) 3/09 at 100.00 AAA 1,206,716
1,890 5.750%, 9/01/29 - FSA Insured (Alternative Minimum Tax) (4) 3/09 at 100.00 AAA 1,653,334
1,395 Florida Housing Finance Agency, Housing Revenue Bonds, 4/09 at 100.00 AA 1,243,154
Riverfront Apartments, Series 1997A, 6.250%, 4/01/37 -
AMBAC Insured (Alternative Minimum Tax)
950 Florida Housing Finance Agency, Housing Revenue Bonds, 11/08 at 100.00 AA 949,972
Turtle Creek Apartments, Series 1996C-1, 6.100%, 5/01/16 -
AMBAC Insured (Alternative Minimum Tax)
2,040 Florida Housing Finance Corporation, GNMA Collateralized 12/10 at 102.00 Aaa 1,907,318
Housing Revenue Bonds, Cobblestone Apartments,
Series 2000K-1, 6.000%, 12/01/33 (Alternative Minimum Tax)
2,475 Florida Housing Finance Corporation, GNMA Collateralized 9/10 at 102.00 AAA 2,135,059
Housing Revenue Bonds, Raintree Apartments, Series 2000J-1,
5.950%, 3/01/35 (Alternative Minimum Tax)
3,290 Jacksonville, Florida, GNMA Collateralized Housing Revenue 3/09 at 100.00 AAA 3,330,105
Refunding 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 1,269,347
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, 2008 (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 $ 930,299
Housing Revenue Bonds, Westlake Apartments Phase II,
Series 2002, 5.150%, 7/01/22 - FSA Insured (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
21,435 Total Housing/Multifamily 19,822,206
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.7% (0.4% OF TOTAL INVESTMENTS)
30 Broward County Housing Finance Authority, Florida, Single Family 4/09 at 101.00 BBB+ 24,102
Mortgage Revenue Refunding Bonds, Series 1999B,
5.250%, 4/01/31 - MBIA Insured (Alternative Minimum Tax)
670 Escambia County Housing Finance Authority, Florida, 4/09 at 101.00 Aaa 530,138
Multi-County Single Family Mortgage Revenue Bonds,
Series 1999, 5.200%, 4/01/32 - MBIA Insured
(Alternative Minimum Tax)
3,495 Florida Housing Finance Corporation, Homeowner Mortgage 1/10 at 24.65 Aaa 808,079
Revenue Bonds, Series 2000-4 , 0.000%, 7/01/30 - FSA Insured
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
4,195 Total Housing/Single Family 1,362,319
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 2.2% (1.4% OF TOTAL INVESTMENTS)
940 Florida State Board of Education, Full Faith and Credit, 6/11 at 101.00 AAA 891,299
Public Education Capital Outlay Bonds, Series 2001C,
5.125%, 6/01/29 - FGIC Insured
1,895 Reedy Creek Improvement District, Orange and Osceola Counties, 6/15 at 100.00 AA 1,788,766
Florida, General Obligation Bonds, Series 2005B, 5.000%, 6/01/25 -
AMBAC Insured
1,390 Venice, Florida, General Obligation Bonds, Series 2004, 2/14 at 100.00 AA 1,322,891
5.000%, 2/01/24 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
4,225 Total Tax Obligation/General 4,002,956
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 65.7% (42.0% OF TOTAL INVESTMENTS)
3,820 Broward County School Board, Florida, Certificates of Participation, 7/13 at 100.00 AA 3,790,471
Series 2003, 5.250%, 7/01/19 - MBIA Insured
1,500 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AA 1,452,435
Series 2005, 5.000%, 10/01/23 - MBIA Insured
3,000 Collier County, Florida, Gas Tax Revenue Bonds, Series 2005, 6/15 at 100.00 AA 2,822,070
5.000%, 6/01/22 - AMBAC Insured
1,555 DeSoto County, Florida, Capital Improvement Revenue Bonds, 4/12 at 101.00 AA 1,549,480
Series 2002, 5.250%, 10/01/20 - MBIA Insured
Destin, Florida, Capital Improvement Revenue Bonds, Series 2002:
1,000 5.000%, 8/01/27 - MBIA Insured 8/12 at 101.00 A2 995,350
1,000 5.125%, 8/01/31 - MBIA Insured 8/12 at 101.00 A2 929,520
2,500 Escambia County School Board, Florida, Certificates of 2/15 at 100.00 AA 2,323,175
Participation, 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 2,237,350
Master Lease Revenue Program, Series 2005A,
5.000%, 8/01/30 - FSA Insured
1,200 Flagler County, Florida, Capital Improvement Revenue Bonds, 10/15 at 100.00 AA 1,058,676
Series 2005, 5.000%, 10/01/30 - MBIA Insured
1,435 Florida Department of Environmental Protection, Florida Forever 7/13 at 101.00 AA 1,444,758
Revenue Bonds, Series 2003A, 5.000%, 7/01/19 - FGIC Insured
Florida Municipal Loan Council, Revenue Bonds, Series 2000B:
3,365 5.375%, 11/01/25 - MBIA Insured 11/10 at 101.00 AA 3,190,828
3,345 5.375%, 11/01/30 - MBIA Insured 11/10 at 101.00 AA 3,076,162
1,000 Florida Municipal Loan Council, Revenue Bonds, Series 2001A, 11/11 at 101.00 AA 1,000,820
5.250%, 11/01/18 - MBIA Insured
2,230 Florida Ports Financing Commission, Revenue Bonds, State 10/09 at 101.00 AA+ 1,934,391
Transportation Trust Fund - Intermodal Program, Series 1999,
5.500%, 10/01/23 - FGIC Insured (Alternative Minimum Tax)
5,200 Gulf Breeze, Florida, Local Government Loan Program, 12/11 at 101.00 N/R 5,264,896
Remarketed 6-1-2001, Series 1985E, 4.750%, 12/01/20
(Mandatory put 12/01/11) - FGIC Insured
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,080 Gulf Breeze, Florida, Local Government Loan Program, 12/08 at 100.00 N/R $ 1,081,944
Remarketed 6-3-1996, Series 1985B, 5.900%, 12/01/15
(Mandatory put 12/01/10) - FGIC Insured
1,020 Gulf Breeze, Florida, Local Government Loan Program, 12/08 at 100.00 N/R 1,021,836
Remarketed 6-3-1996, Series 1985C, 5.900%, 12/01/15
(Mandatory put 12/01/08) - FGIC Insured
1,500 Gulf Breeze, Florida, Local Government Loan Program, 12/10 at 101.00 Baa3 1,509,825
Remarketed 7-3-2000, Series 1985E, 5.750%, 12/01/20
(Mandatory put 12/01/19) - FGIC Insured
6,000 Hillsborough County School Board, Florida, Certificates of 7/13 at 100.00 AA 5,603,760
Participation, Series 2003, 5.000%, 7/01/29 - MBIA Insured
2,000 Hillsborough County, Florida, Community Investment Tax Revenue 11/13 at 101.00 AA+ 1,951,660
Bonds, Series 2004, 5.000%, 5/01/23 - AMBAC Insured
1,000 Hillsborough County, Florida, Revenue Refunding Bonds, 10/15 at 100.00 AA+ 952,760
Tampa Bay Arena, Series 2005, 5.000%, 10/01/25 -
FGIC Insured
2,595 Indian River County School Board, Florida, Certificates of 7/15 at 100.00 AA 2,440,390
Participation, Series 2005, 5.000%, 7/01/22 - MBIA Insured
1,000 Indian Trace Development District, Florida, Water Management 5/15 at 102.00 A2 901,990
Special Benefit Assessment Bonds, Series 2005,
5.000%, 5/01/25 - MBIA Insured
1,480 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/13 at 100.00 AA 1,492,032
Bonds, Series 2003, 5.250%, 10/01/20 - MBIA Insured
1,280 Lake County School Board, Florida, Certificates of Participation, 7/14 at 100.00 AA 1,214,234
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 AA 1,702,597
2,000 5.000%, 10/01/19 - AMBAC Insured 10/12 at 100.00 AA 1,980,040
1,230 Lee County, Florida, Local Option Gas Tax Revenue Bonds, 10/14 at 100.00 A3 1,198,709
Series 2004, 5.000%, 10/01/20 - FGIC Insured
2,000 Miami-Dade County School Board, Florida, Certificates of 11/16 at 100.00 AA 1,752,240
Participation, Series 2006B, 5.000%, 11/01/31 - AMBAC Insured
18,000 Miami-Dade County, Florida, Subordinate Special Obligation 4/09 at 52.08 AA 8,149,320
Bonds, Series 1997A, 0.000%, 10/01/21 - MBIA Insured
4,000 Miami-Dade County, Florida, Transit System Sales Surtax 7/18 at 100.00 AAA 3,523,800
Revenue Bonds, Series 2008, 5.000%, 7/01/35 - FSA Insured
1,000 Orange County School Board, Florida, Certificates of Participation, 8/17 at 100.00 AA 879,040
Series 2007A, 5.000%, 8/01/27 - FGIC Insured
3,180 Orange County, Florida, Sales Tax Revenue Bonds, Series 2002B, 1/13 at 100.00 AA 3,181,526
5.125%, 1/01/19 - FGIC Insured
2,500 Orange County, Florida, Tourist Development Tax Revenue Bonds, 10/16 at 100.00 A+ 2,179,475
Series 2006, 5.000%, 10/01/31 - SYNCORA GTY 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 A2 2,461,300
5,500 5.000%, 4/01/23 - MBIA Insured 4/14 at 100.00 A2 5,134,965
2,150 Palm Beach County School Board, Florida, Certificates of 8/14 at 100.00 AA 1,977,936
Participation, Series 2004A, 5.000%, 8/01/24 - FGIC Insured
3,000 Palm Beach County School Board, Florida, Certificates of 8/17 at 100.00 AA 2,708,520
Participation, Series 2007E, 5.000%, 8/01/27 - MBIA Insured
4,115 Palm Beach County, Florida, Administrative Complex Revenue No Opt. Call AA 4,174,462
Refunding Bonds, Series 1993, 5.250%, 6/01/11 - FGIC Insured
4,000 Palm Beach County, Florida, Revenue Refunding Bonds, Criminal No Opt. Call AA 4,104,400
Justice Facilities, Series 1993, 5.375%, 6/01/10 - FGIC Insured
29
NFL
Nuveen Insured Florida Premium Income Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,300 Plantation, Florida, Non-Ad Valorem Revenue Refunding and 8/13 at 100.00 Aaa $ 1,279,408
Improvement Bonds, Series 2003, 5.000%, 8/15/21 - FSA Insured
1,000 Port Saint Lucie. Florida, Special Assessment Revenue Bonds, 7/17 at 100.00 AA 840,440
Southwest Annexation District 1B, Series 2007,
5.000%, 7/01/33 - MBIA Insured
3,500 School Board of Duval County, Florida, Certificates of Participation, 7/17 at 100.00 Aaa 3,072,475
Master Lease Program, Series 2008, 5.000%, 7/01/33 -
FSA Insured
4,260 St. Lucie County School Board, Florida, Certificates of 7/14 at 100.00 AAA 4,016,584
Participation, Master Lease Program, Series 2004A,
5.000%, 7/01/24 - FSA Insured
St. Petersburg, Florida, Sales Tax Revenue Bonds, Professional
Sports Facility, Series 2003:
1,475 5.125%, 10/01/20 - FSA Insured 10/13 at 100.00 Aaa 1,480,974
1,555 5.125%, 10/01/21 - FSA Insured 10/13 at 100.00 Aaa 1,548,391
1,245 Tamarac, Florida, Sales Tax Revenue Bonds, Series 2002, 4/12 at 100.00 A+ 1,209,405
5.000%, 4/01/22 - FGIC Insured
4,275 Volusia County School Board, Florida, Certificates of Participation, 8/15 at 100.00 Aaa 4,021,322
Series 2005B, 5.000%, 8/01/24 - FSA Insured
2,000 Volusia County, Florida, Gas Tax Revenue Bonds, Series 2004, 10/14 at 100.00 AAA 1,968,160
5.000%, 10/01/21 - FSA Insured
6,000 Volusia County, Florida, School Board Certificates of Participation, 8/17 at 100.00 Aa3 4,541,160
Series 2007, Trust 1035, 6.906%, 8/01/32 - FSA Insured (IF)
1,785 Volusia County, Florida, Tax Revenue Bonds, Tourist Development, 12/14 at 100.00 Aaa 1,695,929
Series 2004, 5.000%, 12/01/24 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
138,905 Total Tax Obligation/Limited 122,023,391
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.6% (3.5% OF TOTAL INVESTMENTS)
2,150 Broward County, Florida, Airport System Revenue Bonds, 10/14 at 100.00 AA 1,991,889
Series 2004L, 5.000%, 10/01/23 - AMBAC Insured
1,100 Dade County, Florida, Seaport Revenue Refunding Bonds, 4/09 at 100.00 AA 1,102,420
Series 1995, 5.750%, 10/01/15 - MBIA Insured
2,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/13 at 100.00 AAA 2,040,940
Revenue Refunding Bonds, Series 2003A, 5.000%, 10/01/17 -
FSA Insured
5,615 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 A2 5,217,739
International Airport, Series 2002, 5.750%, 10/01/19 -
FGIC Insured (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
10,865 Total Transportation 10,352,988
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 18.6% (11.9% OF TOTAL INVESTMENTS) (5)
5,325 Escambia County Housing Finance Authority, Florida, Dormitory 6/09 at 101.00 AA (5) 5,505,518
Revenue 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 10/13 at 100.00 AA (5) 4,257,207
Bonds, Citrus Project, Series 2003, 5.000%, 10/01/23
(Pre-refunded 10/01/13) - AMBAC Insured
4,750 Florida Housing Finance Corporation, Housing Revenue Bonds, 10/10 at 102.00 Aaa 5,137,458
Augustine Club Apartments, Series 2000D-1, 5.750%, 10/01/30
(Pre-refunded 10/01/10) - MBIA Insured
10,000 Port St. Lucie, Florida, Utility System Revenue Bonds, Series 2001, 9/11 at 34.97 AA (5) 3,184,900
0.000%, 9/01/29 (Pre-refunded 9/01/11) - MBIA Insured
1,830 Port St. Lucie, Florida, Utility System Revenue Bonds, 9/13 at 100.00 AA (5) 1,973,124
Series 2003, 5.000%, 9/01/21 (Pre-refunded 9/01/13) -
MBIA Insured
5,715 Seminole County, Florida, Water and Sewer Revenue Refunding No Opt. Call AAA 6,330,620
and Improvement Bonds, Series 1992, 6.000%, 10/01/19 -
MBIA Insured (ETM)
St. Lucie County, Florida, Utility System Revenue Refunding
Bonds, Series 1993:
5,000 5.500%, 10/01/15 - FGIC Insured (ETM) No Opt. Call N/R (5) 5,377,800
1,200 5.500%, 10/01/21 - FGIC Insured (ETM) No Opt. Call N/R (5) 1,260,624
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (5) (continued)
$ 1,500 Tampa, Florida, Healthcare System Revenue Bonds, Allegany 12/08 at 100.00 AA (5) $ 1,520,595
Health System - St. Joseph's Hospital, Series 1993,
5.125%, 12/01/23 - MBIA Insured (ETM)
- ------------------------------------------------------------------------------------------------------------------------------------
39,265 Total U.S. Guaranteed 34,547,846
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.9% (5.0% OF TOTAL INVESTMENTS)
3,000 Leesburg, Florida, Utility Revenue Bonds, Series 2007, 10/17 at 100.00 AA 2,539,740
5.000%, 10/01/37 - MBIA Insured
8,000 Palm Beach County Solid Waste Authority, Florida, Revenue Bonds, No Opt. Call AA 6,187,360
Series 2002B, 0.000%, 10/01/14 - AMBAC Insured
3,525 Palm Beach County Solid Waste Authority, Florida, Revenue No Opt. Call AA 3,651,054
Refunding Bonds, Series 1997A, 6.000%, 10/01/09 -
AMBAC Insured
2,500 Tallahassee, Florida, Energy System Revenue Bonds, Series 2005, 10/15 at 100.00 AA 2,342,725
5.000%, 10/01/29 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
17,025 Total Utilities 14,720,879
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 37.1% (23.6% OF TOTAL INVESTMENTS)
1,250 Bay County, Florida, Water System Revenue Bonds, Series 2005, 9/15 at 100.00 Aa3 1,154,525
5.000%, 9/01/24 - AMBAC Insured
Broward County, Florida, Water and Sewer Utility Revenue Bonds,
Series 2003:
5,000 5.000%, 10/01/21 - MBIA Insured 10/13 at 100.00 AA 4,920,400
4,500 5.000%, 10/01/24 - MBIA Insured 10/13 at 100.00 AA 4,327,785
Clay County, Florida, Utility System Revenue Bonds, Series 2007:
5,110 5.000%, 11/01/27 - SYNCORA GTY Insured 11/17 at 100.00 AAA 4,834,162
12,585 5.000%, 11/01/32 - SYNCORA GTY Insured 11/17 at 100.00 AAA 11,359,974
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 AA 919,573
475 5.250%, 10/01/18 - AMBAC Insured 10/13 at 100.00 AA 480,510
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 AA 1,204,525
1,095 5.000%, 10/01/23 - MBIA Insured 10/13 at 100.00 AA 1,020,704
1,225 5.000%, 10/01/24 - MBIA Insured 10/13 at 100.00 AA 1,131,177
1,000 Florida Governmental Utility Authority, Utility System Revenue 7/09 at 101.00 Aa3 865,350
Bonds, Golden Gate Project, Series 1999, 5.000%, 7/01/29 -
AMBAC Insured
8,000 Indian River County, Florida, Water and Sewer Revenue Bonds, 3/09 at 102.00 AA 7,603,120
Series 1993A, 5.250%, 9/01/24 - FGIC Insured
1,000 JEA, Florida, Water and Sewerage System Revenue Bonds, 10/13 at 100.00 AA 1,034,720
Series 2004A, 5.000%, 10/01/14 - FGIC Insured
1,500 JEA, Florida, Water and Sewerage System Revenue Bonds, 10/14 at 100.00 AA 1,425,645
Series 2007B, 5.000%, 10/01/24 - MBIA Insured
1,450 Jupiter, Florida, Water Revenue Bonds, Series 2003, 10/13 at 100.00 AA 1,428,511
5.000%, 10/01/22 - AMBAC Insured
2,000 Manatee County, Florida, Public Utilities Revenue Bonds, 10/13 at 100.00 Aa3 2,008,100
Series 2003, 5.125%, 10/01/20 - MBIA Insured
Marco Island, Florida, Water Utility System Revenue Bonds,
Series 2003:
1,350 5.250%, 10/01/17 - MBIA Insured 10/13 at 100.00 AA 1,388,583
1,000 5.250%, 10/01/18 - MBIA Insured 10/13 at 100.00 AA 1,019,020
2,000 Miami-Dade County, Florida, Water and Sewer System Revenue No Opt. Call AAA 1,990,140
Bonds, Series 2008B, 5.250%, 10/01/22 - FSA Insured
1,750 Palm Bay, Florida, Utility System Revenue Bonds, Palm Bay 10/13 at 100.00 AA 1,731,363
Utility Corporation, Series 2003, 5.000%, 10/01/20 -
MBIA Insured
Palm Coast, Florida, Water Utility System Revenue Bonds,
Series 2003:
1,000 5.250%, 10/01/19 - MBIA Insured 10/13 at 100.00 AA 1,012,910
500 5.250%, 10/01/20 - MBIA Insured 10/13 at 100.00 AA 502,770
500 5.250%, 10/01/21 - MBIA Insured 10/13 at 100.00 AA 499,510
31
NFL
Nuveen Insured Florida Premium Income Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,170 Polk County, Florida, Utility System Revenue Bonds, Series 2004A, 10/14 at 100.00 A2 $ 1,075,803
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 AA 1,217,798
1,980 5.250%, 5/01/17 - MBIA Insured 5/12 at 100.00 AA 1,996,276
1,000 Port St. Lucie, Florida, Utility System Revenue Bonds, Series 2004, 9/14 at 100.00 A2 947,540
5.000%, 9/01/21 - MBIA Insured
Sebring, Florida, Water and Wastewater Revenue Refunding Bonds,
Series 2002:
1,360 5.250%, 1/01/17 - FGIC Insured 1/13 at 100.00 AA 1,373,573
770 5.250%, 1/01/18 - FGIC Insured 1/13 at 100.00 AA 777,685
500 5.250%, 1/01/20 - FGIC Insured 1/13 at 100.00 AA 498,290
3,530 Seminole County, Florida, Water and Sewer Revenue Refunding No Opt. Call AA 3,770,993
and Improvement Bonds, Series 1992, 6.000%, 10/01/19 -
MBIA Insured
1,300 Sunrise, Florida, Utility System Revenue Refunding Bonds, 4/09 at 100.00 AA 1,302,340
Series 1996, 5.800%, 10/01/11 - AMBAC Insured
2,000 Village Center Community Development District, Florida, Utility 10/13 at 101.00 AA 1,947,480
Revenue Bonds, Series 2003, 5.250%, 10/01/23 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
71,250 Total Water and Sewer 68,770,855
- ------------------------------------------------------------------------------------------------------------------------------------
$ 324,835 Total Investments (cost $306,183,861) - 157.0% 291,340,255
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 5,226,933
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (59.8)% (6) (111,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 185,567,188
====================================================================================================================
At least 80% of the Fund's net assets (including net assets
attributable to Preferred shares) are invested in municipal
securities that are covered by insurance or backed by an
escrow or trust account containing sufficient U.S.
Government or U.S. Government agency securities or U.S.
Treasury-issued State and Local Government Series securities
to ensure the timely payment of principal and interest. See
Notes to Financial Statements, Footnote 1 - Insurance, for
more information.
(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.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, FSA, MBIA,
RAAI and SYNCORA as of October 31, 2008. Please see the
Portfolio Manager's Commentary for an expanded discussion of
the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings
of the underlying insurers both during the period and after
period end.
(4) Portion of investment has been pledged to collateralize the
net payment obligations under futures contracts entered into
by the Fund during the period.
(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) Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 38.1%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
32
NWF
Nuveen Insured Florida Tax-Free Advantage Municipal Fund
Portfolio of INVESTMENTS
October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 1,685 Golden State Tobacco Securitization Corporation, California, 6/22 at 100.00 BBB $ 685,795
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-2, 0.000%, 6/01/37
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 14.6% (9.3% OF TOTAL INVESTMENTS)
2,240 FSU Financial Assistance Inc., Florida, General Revenue Bonds, No Opt. Call AA 2,350,298
Educational and Athletic Facilities Improvements, Series 2004,
5.000%, 10/01/14 - AMBAC Insured
1,985 North Miami, Florida, Educational Facilities Revenue Refunding 4/13 at 100.00 BBB- 1,853,633
Bonds, Johnson and Wales University, Series 2003A,
5.000%, 4/01/19 - SYNCORA GTY Insured
1,500 Volusia County Educational Facilities Authority, Florida, Revenue 10/15 at 100.00 A3 1,122,510
Bonds, Embry-Riddle Aeronautical University, Series 2005,
5.000%, 10/15/35 - RAAI Insured
Volusia County Educational Facilities Authority, Florida,
Revenue Refunding Bonds, Embry-Riddle Aeronautical
University, Series 2003:
1,000 5.200%, 10/15/26 - RAAI Insured 10/13 at 100.00 A3 834,580
1,250 5.200%, 10/15/33 - RAAI Insured 10/13 at 100.00 A3 982,588
- ------------------------------------------------------------------------------------------------------------------------------------
7,975 Total Education and Civic Organizations 7,143,609
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 5.4% (3.4% OF TOTAL INVESTMENTS)
Halifax Hospital Medical Center, Florida, Revenue Bonds, Series 2006:
1,000 5.250%, 6/01/26 6/16 at 100.00 BBB+ 795,360
350 5.500%, 6/01/38 - FSA Insured 6/18 at 100.00 AAA 307,143
1,300 Highlands County Health Facilities Authority, Florida, Hospital 11/15 at 100.00 AA 1,111,708
Revenue Bonds, Adventist Health System, Series 2005D,
5.000%, 11/15/35 - MBIA Insured
500 Lee Memorial Health System, Florida, Hospital Revenue Bonds, 4/17 at 100.00 AA 416,565
Series 2007A, 5.000%, 4/01/32 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
3,150 Total Health Care 2,630,776
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.0% (0.7% OF TOTAL INVESTMENTS)
480 Florida Housing Finance Agency, GNMA Collateralized Home No Opt. Call AAA 510,610
Ownership Revenue Refunding Bonds, Series 1987G-1,
8.595%, 11/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 58.4% (36.9% OF TOTAL INVESTMENTS)
400 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AA 387,316
Series 2005, 5.000%, 10/01/23 - MBIA Insured
1,000 Escambia County, Florida, Sales Tax Revenue Refunding Bonds, 10/12 at 101.00 AA 1,028,580
Series 2002, 5.250%, 10/01/17 - AMBAC Insured
500 Flagler County, Florida, Capital Improvement Revenue Bonds, 10/15 at 100.00 AA 441,115
Series 2005, 5.000%, 10/01/30 - MBIA Insured
1,500 Hillsborough County School Board, Florida, Certificates of 7/13 at 100.00 AA 1,400,940
Participation, Series 2003, 5.000%, 7/01/29 - MBIA Insured
2,270 Jacksonville, Florida, Local Government Sales Tax Revenue 10/12 at 100.00 AA+ 2,283,325
Refunding and Improvement Bonds, Series 2002,
5.375%, 10/01/18 - FGIC Insured
2,265 Lakeland, Florida, Utility Tax Revenue Bonds, Series 2003B, 10/12 at 100.00 AA 2,207,378
5.000%, 10/01/20 - AMBAC Insured
100 Miami-Dade County, Florida, Transit System Sales Surtax Revenue 7/18 at 100.00 AAA 88,095
Bonds, Series 2008, 5.000%, 7/01/35 - FSA Insured
33
NWF
Nuveen Insured Florida Tax-Free Advantage Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
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, 1/13 at 100.00 AA $ 2,030,940
5.125%, 1/01/17 - FGIC Insured
1,500 Orange County, Florida, Sales Tax Revenue Bonds, Series 2002B, 1/13 at 100.00 AA 1,355,820
5.125%, 1/01/32 - FGIC Insured
3,335 Palm Bay, Florida, Local Optional Gas Tax Revenue Bonds, 10/14 at 100.00 AA 3,371,985
Series 2004, 5.250%, 10/01/20 - MBIA Insured
2,670 Palm Beach County School Board, Florida, Certificates of 8/12 at 100.00 AAA 2,452,902
Participation, Series 2002D, 5.000%, 8/01/28 - FSA Insured
2,000 Palm Beach Gardens, Florida, Special Obligation Revenue Bonds, 2/13 at 100.00 AA 1,994,800
Series 2004, 5.000%, 5/01/20 - AMBAC Insured
1,000 Port Saint Lucie. Florida, Special Assessment Revenue Bonds, 7/17 at 100.00 AA 840,440
Southwest Annexation District 1B, Series 2007,
5.000%, 7/01/33 - MBIA Insured
2,115 Port St. Lucie, Florida, Sales Tax Revenue Bonds, Series 2003, 9/13 at 100.00 AA 2,048,124
5.000%, 9/01/23 - MBIA Insured
500 School Board of Duval County, Florida, Certificates of Participation, 7/17 at 100.00 Aaa 438,925
Master Lease Program, Series 2008, 5.000%, 7/01/33 -
FSA Insured
1,730 St. John's County, Florida, Sales Tax Revenue Bonds, Series 2004A, 10/14 at 100.00 AA 1,616,322
5.000%, 10/01/24 - AMBAC Insured
4,000 St. Lucie County School Board, Florida, Certificates of Participation, 7/14 at 100.00 AAA 3,771,440
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 A3 760,830
Improvement Revenue Bonds, Series 2007A2, 5.000%, 5/01/34 -
RAAI Insured
- ------------------------------------------------------------------------------------------------------------------------------------
29,885 Total Tax Obligation/Limited 28,519,277
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.6% (7.4% OF TOTAL INVESTMENTS)
2,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 1,853,460
Revenue Bonds, Series 2002A, 5.125%, 10/01/32 -
FSA Insured (4)
2,105 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/13 at 100.00 AAA 2,148,089
Revenue Refunding Bonds, Series 2003A, 5.000%, 10/01/17 -
FSA Insured (4)
1,730 Lee County, Florida, Transportation Facilities Revenue Bonds, 10/14 at 100.00 AA 1,685,920
Series 2004B, 5.000%, 10/01/22 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
5,835 Total Transportation 5,687,469
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 36.5% (23.1% OF TOTAL INVESTMENTS) (5)
1,660 Grand Prairie Independent School District, Dallas County, Texas, 2/13 at 100.00 AAA 1,804,935
General Obligation Bonds, Series 2003, 5.375%, 2/15/26
(Pre-refunded 2/15/13) - FSA Insured
180 Highlands County Health Facilities Authority, Florida, Hospital 11/15 at 100.00 A1 (5) 192,861
Revenue Bonds, Adventist Health System, Series 2005D,
5.000%, 11/15/35 (Pre-refunded 11/15/15) - MBIA Insured
3,500 Highlands County Health Facilities Authority, Florida, Hospital 11/13 at 100.00 N/R (5) 3,826,791
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2003D, 5.875%, 11/15/29
(Pre-refunded 11/15/13)
500 North Port, Florida, Utility System Revenue Bonds, Series 2000, 10/10 at 101.00 Aaa 528,640
5.000%, 10/01/25 (Pre-refunded 10/01/10) - FSA Insured
3,370 Osceola County School Board, Florida, Certificates of Participation, 6/12 at 101.00 Aa3 (5) 3,597,273
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 2,099,975
Participation, Series 2002D, 5.250%, 8/01/20
(Pre-refunded 8/01/12) - FSA Insured
2,800 Pinellas County Health Facilities Authority, Florida, Revenue 5/13 at 100.00 Aa3 (5) 3,094,392
Bonds, Baycare Health System, Series 2003,
5.750%, 11/15/27 (Pre-refunded 5/15/13)
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 1,089,660
Series 2002II, 5.125%, 7/01/26 (Pre-refunded 7/01/12) -
FSA Insured
1,500 South Miami Health Facilities Authority, Florida, Hospital 2/13 at 100.00 Aaa 1,615,470
Revenue Bonds, Baptist Health Systems of South Florida,
Series 2003, 5.200%, 11/15/28 (Pre-refunded 2/01/13)
- ------------------------------------------------------------------------------------------------------------------------------------
16,460 Total U.S. Guaranteed 17,849,997
- ------------------------------------------------------------------------------------------------------------------------------------
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 29.0% (18.3% OF TOTAL INVESTMENTS)
$ 1,000 Bay County, Florida, Water System Revenue Bonds, Series 2005, 9/15 at 100.00 Aa3 $ 915,680
5.000%, 9/01/25 - AMBAC Insured
Clay County, Florida, Utility System Revenue Bonds, Series 2007:
1,500 5.000%, 11/01/27 - SYNCORA GTY Insured 11/17 at 100.00 AAA 1,419,030
3,000 5.000%, 11/01/32 - SYNCORA GTY Insured 11/17 at 100.00 AAA 2,707,980
1,525 Fernandina Beach, Florida, Utility Acquisition and Improvement 9/13 at 100.00 AA 1,396,092
Revenue Bonds, Series 2003, 5.000%, 9/01/23 - FGIC Insured
3,000 Marco Island, Florida, Water Utility System Revenue Bonds, 10/13 at 100.00 AA 2,834,970
Series 2003, 5.000%, 10/01/27 - MBIA Insured
2,000 Miami-Dade County, Florida, Water and Sewer System Revenue 10/09 at 101.00 A+ 1,853,120
Bonds, Series 1999A, 5.000%, 10/01/29 - FGIC Insured
500 Miami-Dade County, Florida, Water and Sewer System Revenue No Opt. Call AAA 497,535
Bonds, Series 2008B, 5.250%, 10/01/22 - FSA Insured
1,095 Palm Bay, Florida, Utility System Revenue Bonds, Series 2004, 10/14 at 100.00 AA 1,107,144
5.250%, 10/01/20 - MBIA Insured
1,500 Port St. Lucie, Florida, Stormwater Utility System Revenue 5/12 at 100.00 AA 1,424,295
Refunding Bonds, Series 2002, 5.000%, 5/01/23 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
15,120 Total Water and Sewer 14,155,846
- ------------------------------------------------------------------------------------------------------------------------------------
$ 80,590 Total Investments (cost $81,468,541) - 157.9% 77,183,379
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 691,380
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (59.3)% (6) (29,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 48,874,759
====================================================================================================================
At least 80% of the Fund's net assets (including net assets
attributable to Preferred shares) are invested in municipal
securities that are covered by insurance or backed by an
escrow or trust account containing sufficient U.S.
Government or U.S. Government agency securities or U.S.
Treasury-issued State and Local Government Series securities
to ensure the timely payment of principal and interest. See
Notes to Financial Statements, Footnote 1 - Insurance, for
more information.
(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.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by ACA, AMBAC, CIFG, FGIC, FSA, MBIA,
RAAI and SYNCORA as of October 31, 2008. Please see the
Portfolio Manager's Commentary for an expanded discussion of
the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings
of the underlying insurers both during the period and after
period end.
(4) Portion of investment has been pledged to collateralize the
net payment obligations under futures contracts entered into
by the Fund during the period.
(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) Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 37.6%.
N/R Not rated.
See accompanying notes to financial statements.
35
Statement of
ASSETS & LIABILITIES
October 31, 2008 (Unaudited)
FLORIDA FLORIDA INSURED FLORIDA INSURED FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $343,875,448, $311,873,702,
$306,183,861 and $81,468,541, respectively) $317,867,107 $288,562,578 $291,340,255 $77,183,379
Cash 6,319,276 400,695 2,679,264 --
Receivables:
Interest 4,460,336 3,915,755 3,439,450 1,007,663
Investments sold -- 376,969 50,000 --
Other assets 40,373 30,013 40,888 2,482
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 328,687,092 293,286,010 297,549,857 78,193,524
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- -- 68,052
Payables:
Common share dividends 857,185 698,435 721,338 197,205
Preferred share dividends 44,457 34,170 12,467 4,749
Accrued expenses:
Management fees 176,911 158,271 159,331 26,678
Other 116,933 100,307 89,533 22,081
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,195,486 991,183 982,669 318,765
- ------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 132,000,000 117,000,000 111,000,000 29,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $195,491,606 $175,294,827 $185,567,188 $48,874,759
====================================================================================================================================
Common shares outstanding 16,368,802 14,154,895 14,218,896 3,882,373
====================================================================================================================================
Net asset value per Common share outstanding (net assets applicable
to Common shares, divided by Common shares outstanding) $ 11.94 $ 12.38 $ 13.05 $ 12.59
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 163,688 $ 141,549 $ 142,189 $ 38,824
Paid-in surplus 228,858,884 204,131,712 201,990,758 54,746,905
Undistributed (Over-distribution of) net investment income 49,866 (829,788) (368,571) (167,111)
Accumulated net realized gain (loss) from investments
and derivative transactions (7,572,491) (4,837,522) (1,353,582) (1,458,697)
Net unrealized appreciation (depreciation) of investments
and derivative transactions (26,008,341) (23,311,124) (14,843,606) (4,285,162)
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $195,491,606 $175,294,827 $185,567,188 $48,874,759
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
36
Statement of
OPERATIONS
Six Months Ended October 31, 2008 (Unaudited)
FLORIDA FLORIDA INSURED FLORIDA INSURED FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 9,618,344 $ 7,831,514 $ 7,833,736 $ 1,956,179
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,123,922 994,418 993,966 264,046
Preferred shares - auction fees 166,356 147,452 139,890 36,548
Preferred shares - dividend disbursing agent fees 10,064 15,080 10,075 5,027
Shareholders' servicing agent fees and expenses 8,219 5,718 5,907 387
Interest expense on floating rate obligations 43,764 -- -- --
Custodian's fees and expenses 34,630 42,679 29,502 10,126
Trustees' fees and expenses 3,374 3,051 3,095 877
Professional fees 14,452 13,301 12,034 6,830
Shareholders' reports - printing and mailing expenses 22,221 20,661 18,225 7,357
Stock exchange listing fees 4,635 4,635 4,635 276
Investor relations expense 22,059 19,155 17,911 5,173
Other expenses 9,784 9,449 9,336 7,592
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 1,463,480 1,275,599 1,244,576 344,239
Custodian fee credit (20,219) (3,502) (25,565) (3,591)
Expense reimbursement -- -- -- (99,248)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,443,261 1,272,097 1,219,011 241,400
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 8,175,083 6,559,417 6,614,725 1,714,779
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (2,721,322) (473,784) (734,015) (7,197)
Forward Swaps (765,000) -- 104,696 97,716
Futures -- -- 523,422 84,406
Change in net unrealized appreciation (depreciation) of:
Investments (36,180,253) (28,547,226) (23,402,401) (6,044,204)
Forward swaps 821,435 -- (133,108) (124,234)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (38,845,140) (29,021,010) (23,641,406) (5,993,513)
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (2,542,969) (2,266,472) (2,150,354) (561,282)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (2,542,969) (2,266,472) (2,150,354) (561,282)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $(33,213,026) $(24,728,065) $(19,177,035) $(4,840,016)
====================================================================================================================================
See accompanying notes to financial statements.
37
Statement of
CHANGES in NET ASSETS (Unaudited)
FLORIDA INVESTMENT QUALITY (NQF) FLORIDA QUALITY INCOME (NUF)
-------------------------------- -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
10/31/08 4/30/08 10/31/08 4/30/08
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 8,175,083 $ 15,948,403 $ 6,559,417 $ 13,478,397
Net realized gain (loss) from:
Investments (2,721,322) (2,926,121) (473,784) (4,195,080)
Forward swaps (765,000) 287,000 -- --
Futures -- -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments (36,180,253) (11,368,478) (28,547,226) (8,376,881)
Forward swaps 821,435 (682,435) -- --
Distributions to Preferred shareholders:
From net investment income (2,542,969) (4,781,885) (2,266,472) (4,355,779)
From accumulated net realized gains -- -- -- (44,456)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations (33,213,026) (3,523,516) (24,728,065) (3,493,799)
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (5,401,705) (10,949,281) (4,529,567) (9,321,243)
From accumulated net realized gains -- -- -- (101,970)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (5,401,705) (10,949,281) (4,529,567) (9,423,213)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares repurchased -- (2,896,057) -- (1,977,228)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from capital share transactions -- (2,896,057) -- (1,977,228)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares (38,614,731) (17,368,854) (29,257,632) (14,894,240)
Net assets applicable to Common shares at the
beginning of period 234,106,337 251,475,191 204,552,459 219,446,699
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $195,491,606 $234,106,337 $175,294,827 $204,552,459
====================================================================================================================================
Undistributed (Over-distribution of) net investment income at
the end of period $ 49,866 $ (180,543) $ (829,788) $ (593,166)
====================================================================================================================================
See accompanying notes to financial statements.
38
INSURED FLORIDA PREMIUM INSURED FLORIDA
INCOME (NFL) TAX-FREE ADVANTAGE (NWF)
-------------------------------- -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
10/31/08 4/30/08 10/31/08 4/30/08
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 6,614,725 $ 13,594,373 $ 1,714,779 $ 3,509,753
Net realized gain (loss) from:
Investments (734,015) (957,893) (7,197) (199,637)
Forward swaps 104,696 34,700 97,716 13,880
Futures 523,422 -- 84,406 --
Change in net unrealized appreciation (depreciation) of:
Investments (23,402,401) (7,864,803) (6,044,204) (1,564,997)
Forward swaps (133,108) 133,108 (124,234) 124,234
Distributions to Preferred shareholders:
From net investment income (2,150,354) (3,851,736) (561,282) (1,045,304)
From accumulated net realized gains -- (327,094) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations (19,177,035) 760,655 (4,840,016) 837,929
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (4,877,081) (9,893,964) (1,211,300) (2,457,543)
From accumulated net realized gains -- (910,585) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (4,877,081) (10,804,549) (1,211,300) (2,457,543)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares repurchased -- (2,392,636) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from capital share transactions -- (2,392,636) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares (24,054,116) (12,436,530) (6,051,316) (1,619,614)
Net assets applicable to Common shares at the
beginning of period 209,621,304 222,057,834 54,926,075 56,545,689
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $185,567,188 $209,621,304 $48,874,759 $54,926,075
====================================================================================================================================
Undistributed (Over-distribution of) net investment income at
the end of period $ (368,571) $ 44,139 $ (167,111) $ (109,308)
====================================================================================================================================
See accompanying notes to financial statements.
39
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The Florida 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) (collectively, the "Funds"). Common shares of
Florida Investment Quality (NQF), Florida Quality Income (NUF) and Insured
Florida Premium Income (NFL) are traded on the New York Stock Exchange while
Common shares of Insured Florida Tax-Free Advantage (NWF) are traded on the
American Stock Exchange. The Funds are registered under the Investment Company
Act of 1940, as amended, as closed-end management investment companies.
Each Fund seeks to provide current income exempt from regular federal income
tax, and in the case of Insured Florida Tax-Free Advantage (NWF) the alternative
minimum tax applicable to individuals, by investing primarily in a diversified
portfolio of municipal obligations issued by state and local government
authorities within the state of Florida or certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When market price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service 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. Futures contracts are valued using
the closing settlement price, or in the absence of such a price, at the mean of
the bid and asked prices. If the pricing service is unable to supply a price for
an investment or derivative instrument, each Fund may use market quotes provided
by major broker/dealers in such investments. If it is determined that the market
price for an investment or derivative instrument is unavailable or
inappropriate, the Board of Trustees of the Funds, or its designee, may
establish fair value in accordance with procedures established in good faith by
the Board of Trustees. Temporary investments in securities that have variable
rate and demand features qualifying them as short-term investments are valued at
amortized cost, which approximates 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, 2008, 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.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its net investment income and net
capital gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal income tax, and in
the case of Insured Florida Tax-Free Advantage (NWF) the alternative minimum tax
applicable to individuals, to retain such tax-exempt status when distributed to
shareholders of the Funds. The investment policies of Insured Florida Tax-Free
Advantage (NWF) permit the Fund to invest in a limited amount of out-of-state
securities. Although the Fund may
40
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.
Effective October 31, 2007, the Funds adopted Financial Accounting Standards
Board (FASB) Interpretation No. 48 "Accounting for Uncertainty in Income Taxes"
(FIN 48). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the affirmative evaluation of tax positions taken or expected to be
taken in the course of preparing the Funds' tax returns to determine whether it
is "more-likely-than-not" (i.e., a greater than 50-percent likelihood) of being
sustained by the applicable tax authority. Tax positions not deemed to meet the
more-likely-than-not threshold may result in a tax expense in the current year.
Implementation of FIN 48 required management of the Funds to analyze all open
tax years, as defined by the statute of limitations, for all major
jurisdictions, which includes federal and certain states. Open tax years are
those that are open for examination by taxing authorities (i.e., generally the
last four tax year ends and the interim tax period since then). The Funds have
no examinations in progress.
For all open tax years and all major taxing jurisdictions through the end of the
reporting period, management of the Funds has reviewed all tax positions taken
or expected to be taken in the preparation of the Funds' tax returns and
concluded the adoption of FIN 48 resulted in no impact to the Funds' net assets
or results of operations as of and during the the six months ended October 31,
2008.
The Funds are also not aware of any tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will significantly
change in the next twelve months.
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 at least annually. Furthermore, capital
gains are distributed only to the extent they exceed available capital loss
carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one or more Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period. As
of October 31, 2008, 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
================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Preferred shares issued by the Funds than there were
offers to buy. This meant that these auctions "failed to clear," and that many
Preferred shareholders who wanted to sell their shares in these auctions were
unable to do so. Preferred shareholders unable to sell their shares received
distributions at the "maximum rate" applicable to failed auctions as calculated
in accordance with the pre-established terms of the Preferred shares.
These developments generally do not affect the management or investment policies
of the Funds. However, one implication of these auction failures for Common
shareholders is that the Funds' cost of leverage will likely be higher, at least
temporarily, than it otherwise would have been had the auctions continued to be
successful. As a result, the Funds' future Common share earnings may be lower
than they otherwise would have been.
41
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
On June 11, 2008, Nuveen Investments, Inc. ("Nuveen") announced the Fund Board's
approval of plans to use tender option bonds (TOBs), also known as "floaters" or
floating rate obligations, to refinance a portion of the municipal funds'
outstanding Preferred shares, whose auctions have been failing for several
months. The plan included an initial phase of approximately $1 billion in
forty-one funds. During the six months ended October 31, 2008, the Funds did not
redeemed any of their outstanding Preferred shares,
Insurance
Under normal circumstances, Insured Florida Premium Income (NFL) and Insured
Florida Tax-Free Advantage (NWF) will invest at least 80% of their net assets
(including net assets attributable to Preferred shares) in municipal securities
that are covered by insurance guaranteeing the timely payment of principal and
interest. For purposes of this 80% test, insurers must have a claims paying
ability rated at least "A" at the time of purchase by at least one independent
rating agency. In addition, each Fund will invest at least 80% of its net assets
(including net assets attributable to Preferred shares) in municipal securities
that are rated at least "AA" at the time of purchase (based on the higher of the
rating of the insurer, if any, or the underlying security) by at least one
independent rating agency, or are unrated but judged to be of similar credit
quality by Nuveen Asset Management (the "Adviser"), a wholly-owned subsidiary of
Nuveen, or municipal bonds backed by an escrow or trust account containing
sufficient U.S. government or U.S. government agency securities or U.S.
Treasury-issued State and Local Government Series securities to ensure timely
payment of principal and interest. Each Fund may also invest up to 20% of its
net assets (including net assets attributable to Preferred shares) in municipal
securities rated below "AA" (based on the higher rating of the insurer, if any,
or the underlying bond) or are unrated but judged to be of comparable quality by
the Adviser.
Each insured municipal security is covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance. Such insurance does not
guarantee the market value of the municipal securities or the value of the
Funds' Common shares. Original Issue Insurance and Secondary Market Insurance
remain in effect as long as the municipal securities covered thereby remain
outstanding and the insurer remains in business, regardless of whether the Funds
ultimately dispose of such municipal securities. Consequently, the market value
of the municipal securities covered by Original Issue Insurance or Secondary
Market Insurance may reflect value attributable to the insurance. Portfolio
Insurance, in contrast, is effective only while the municipal securities are
held by the Funds. Accordingly, neither the prices used in determining the
market value of the underlying municipal securities nor the Common share net
asset value of the Funds include value, if any, attributable to the Portfolio
Insurance. Each policy of the Portfolio Insurance does, however, give the Funds
the right to obtain permanent insurance with respect to the municipal security
covered by the Portfolio Insurance policy at the time of its sale.
Inverse Floating Rate Securities
Each Fund is authorized to 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
42
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"). 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 is accounted for as a financing transaction in
accordance with Statement of Financial Accounting Standards No. 140 (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 the related interest paid to the holders of the short-term floating rate
certificates is included as a component of "Interest expense on floating rate
obligations" on the Statement of Operations.
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") (such agreements
referred to herein as "Recourse Trusts") 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 issued by the
trust plus any shortfalls in interest cash flows. Under these agreements, a
Fund's potential exposure to losses related to or on inverse floaters may
increase beyond the value of a Fund's inverse floater investments as a Fund may
potentially be liable to fulfill all amounts owed to holders of the floating
rate certificates. At period end, any such shortfall is included as "Unrealized
depreciation on Recourse Trusts" on the Statement of Assets and Liabilities.
During the six months ended October 31, 2008, 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 the six months ended October 31, 2008.
At October 31, 2008, the Funds were not invested in any externally-deposited
Recourse Trusts.
INSURED
FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM
QUALITY INCOME INCOME
(NQF) (NUF) (NFL)
- --------------------------------------------------------------------------------
Maximum exposure $ -- $ -- $ --
================================================================================
Florida Quality Income (NUF) and Insured Florida Premium Income (NFL) did not
invest in self-deposited inverse floaters during the six months ended October
31, 2008. 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, 2008, for Florida Investment Quality (NQF) were as
follows:
FLORIDA
INVESTMENT
QUALITY
(NQF)
- --------------------------------------------------------------------------------
Average floating rate obligations $3,434,185
Average annual interest rate and fees 2.53%
================================================================================
Forward Swap Transactions
Each Fund is 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
43
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
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. Florida Investment Quality (NQF), Insured Florida Premium Income (NFL)
and Insured Florida Tax-Free Advantage (NWF) invested in forward interest rate
swap transactions during the six months ended October 31, 2008.
Futures Contracts
Each Fund is authorized to invest in futures contracts. Upon entering into a
futures contract, a Fund is required to deposit with the broker an amount of
cash or liquid securities equal to a specified percentage of the contract
amount. This is known as the "initial margin." Subsequent payments ("variation
margin") are made or received by a Fund each day, depending on the daily
fluctuation of the value of the contract.
During the period the futures contract is open, changes in the value of the
contract are recognized as an unrealized gain or loss by "marking-to-market" on
a daily basis to reflect the changes in market value of the contract. When the
contract is closed or expired, a Fund records a realized gain or loss equal to
the difference between the value of the contract on the closing date and value
of the contract when originally entered into. Cash held by the broker to cover
initial margin requirements on open futures contracts, if any, is recognized on
the Statement of Assets and Liabilities. Additionally, the Statement of Assets
and Liabilities reflects a receivable or payable for the variation margin, when
applicable. Insured Florida Premium Income (NFL) and Insured Florida Tax Free
Advantage (NWF) invested in futures contracts during the six months ended
October 31, 2008.
Risks of investments in futures contracts include the possible adverse movement
of the securities or indices underlying the contracts, the possibility that
there may not be a liquid secondary market for the contracts and/or that a
change in the value of the contract may not correlate with a change in the value
of the underlying securities or indices.
Zero Coupon Securities
Each Fund is authorized to 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 Portfolios 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.
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 a 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.
44
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. FAIR VALUE MEASUREMENTS
During the current fiscal period, the Funds adopted the provisions of Statement
of Financial Accounting Standards No. 157 (SFAS No. 157) "Fair Value
Measurements." SFAS No. 157 defines fair value, establishes a framework for
measuring fair value in generally accepted accounting principles, and expands
disclosure about fair value measurements. In determining the value of each
Fund's investments various inputs are used. These inputs are summarized in the
three broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.).
Level 3 - Significant unobservable inputs (including management's
assumptions in determining the fair value of investments). The
inputs or methodology used for valuing securities are not an
indication of the risk associated with investing in those
securities.
The following is a summary of each Fund's fair value measurements as of October
31, 2008:
FLORIDA INVESTMENT QUALITY (NQF) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- ------------------------------------------------------------------------------------------------------
Investments $ -- $317,867,107 $ -- $317,867,107
======================================================================================================
FLORIDA QUALITY INCOME (NUF) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- ------------------------------------------------------------------------------------------------------
Investments $ -- $288,562,578 $ -- $288,562,578
======================================================================================================
INSURED FLORIDA PREMIUM INCOME (NFL) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- ------------------------------------------------------------------------------------------------------
Investments $ -- $291,340,255 $ -- $291,340,255
======================================================================================================
INSURED FLORIDA TAX-FREE ADVANTAGE (NWF) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- ------------------------------------------------------------------------------------------------------
Investments $ -- $77,183,379 $ -- $77,183,379
======================================================================================================
3. FUND SHARES
The Board of Trustees approved an open-market share repurchase program on July
10, 2007, for Florida Investment Quality (NQF), Florida Quality Income (NUF) and
Insured Florida Premium Income (NFL) and on July 30, 2008, for Insured Florida
Tax-Free Advantage (NWF) under which each Fund may repurchase an aggregate of up
to approximately 10% of its outstanding Common shares.
Transactions in Common shares were as follows:
FLORIDA FLORIDA
INVESTMENT QUALITY (NQF) QUALITY INCOME (NUF)
------------------------ ------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
10/31/08 4/30/08 10/31/08 4/30/08
- -------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due
to reinvestment of distributions -- -- -- --
Repurchased -- (218,700) -- (147,700)
- -------------------------------------------------------------------------------------------------------------------
Weighted average price per Common share repurchased -- $13.22 -- $13.37
Weighted average discount per Common share repurchased -- 9.68% -- 10.16%
===================================================================================================================
INSURED FLORIDA INSURED FLORIDA
PREMIUM INCOME (NFL) TAX-FREE ADVANTAGE (NWF)
----------------------- ------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
10/31/08 4/30/08 10/31/08 4/30/08
- -------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due
to reinvestment of distributions -- -- -- --
Repurchased -- (174,500) -- --
- -------------------------------------------------------------------------------------------------------------------
Weighted average price per Common share repurchased -- $13.69 -- --
Weighted average discount per Common share repurchased -- 8.80% -- --
===================================================================================================================
45
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
4. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended October 31, 2008, were
as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ------------------------------------------------------------------------------------------------------------------
Purchases $34,105,338 $12,047,018 $12,326,778 $978,197
Sales and maturities 44,737,438 12,524,820 13,400,988 765,000
==================================================================================================================
5. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing 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, 2008, 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 $343,552,958 $311,849,450 $305,957,431 $81,468,420
=====================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 2008, 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 $ 7,053,109 $ 2,810,251 $ 4,082,904 $ 1,210,643
Depreciation (32,738,960) (26,097,123) (18,700,080) (5,495,684)
- ---------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments $(25,685,851) $(23,286,872) $(14,617,176) $ (4,285,041)
=====================================================================================================================
46
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at April 30, 2008, 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 * $362,721 $187,753 $626,360 $110,019
Undistributed net ordinary income ** 62,652 -- -- --
Undistributed net long-term capital gains -- -- -- --
==================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on April 1, 2008, paid on May 1, 2008.
** 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 Funds' last
tax year ended April 30, 2008, was designated for purposes of
the dividends paid deduction as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $15,831,036 $13,723,665 $13,780,200 $3,509,003
Distributions from net ordinary income ** -- -- -- --
Distributions from net long-term capital gains -- 145,959 1,237,160 --
==================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At April 30, 2008, 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
INVESTMENT TAX-FREE
QUALITY ADVANTAGE
(NQF) (NWF)
- --------------------------------------------------------------------------------
Expiration:
April 30, 2012 $ -- $ 791,760
April 30, 2013 1,449,778 97,429
April 30, 2014 -- 236,625
April 30, 2015 -- 194,032
April 30, 2016 197,103 --
- --------------------------------------------------------------------------------
Total $1,646,881 $1,319,846
================================================================================
The Funds have elected to defer net realized losses from investments incurred
from November 1, 2007 through April 30, 2008, the Funds' last tax year end,
("post-October losses") in accordance with federal income tax regulations.
Post-October losses are treated as having arisen on the first day of the current
fiscal year:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- ------------------------------------------------------------------------------------------------------------------
Total $2,439,288 $4,363,738 $1,150,460 $313,774
==================================================================================================================
6. 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.
47
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
FLORIDA INVESTMENT QUALITY (NQF)
AVERAGE DAILY NET ASSETS FLORIDA QUALITY INCOME (NUF)
(INCLUDING NET ASSETS INSURED FLORIDA PREMIUM INCOME (NFL)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
- --------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
AVERAGE DAILY NET ASSETS
(INCLUDING NET ASSETS INSURED FLORIDA TAX-FREE ADVANTAGE (NWF)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
- --------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
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 following table.
As of October 31, 2008, the complex-level fee rate was .1998%.
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
================================================================================
(1) The complex-level component of the management fee for the funds is
calculated based upon the aggregate daily net assets of all Nuveen funds,
with such daily net assets to include assets attributable to preferred
stock issued by or borrowings by such funds but to exclude assets
attributable to investments in other Nuveen funds.
48
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.
7. NEW ACCOUNTING PRONOUNCEMENT
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 161 (SFAS No. 161) In March 2008, the FASB issued SFAS No. 161, "Disclosures
about Derivative Instruments and Hedging Activities." This standard is intended
to enhance financial statement disclosures for derivative instruments and
hedging activities and enable investors to understand: a) how and why a fund
uses derivative instruments, b) how derivative instruments and related hedge
items are accounted for, and c) how derivative instruments and related hedge
items affect a fund's financial position, results of operations and cash flows.
SFAS No. 161 is effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008. As of October 31, 2008,
management does not believe the adoption of SFAS No. 161 will impact the
financial statement amounts; however, additional footnote disclosures may be
required about the use of derivative instruments and hedging items.
8. 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 1, 2008, to shareholders of record
on November 15, 2008, as follows:
INSURED INSURED
FLORIDA FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM TAX-FREE
QUALITY INCOME INCOME ADVANTAGE
(NQF) (NUF) (NFL) (NWF)
- --------------------------------------------------------------------------------
Dividend per share $.0570 $.0540 $.0555 $.0530
================================================================================
49
Financial
HIGHLIGHTS (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
============================================================================================================================
FLORIDA INVESTMENT QUALITY (NQF)
- ----------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(c) $14.30 $ .50 $(2.37) $(.16) $ -- $(2.03) $ (.33) $ -- $ (.33)
2008 15.16 .97 (.87) (.29) -- (.19) (.67) -- (.67)
2007(b) 14.70 .79 .47 (.23) -- 1.03 (.57) -- (.57)
Year Ended 6/30:
2006 15.63 .94 (.86) (.21) -- (.13) (.80) -- (.80)
2005 14.81 .96 .94 (.11) -- 1.79 (.97) -- (.97)
2004 15.87 1.06 (.84) (.06) (.01) .15 (1.01) (.20) (1.21)
FLORIDA QUALITY INCOME (NUF)
- ----------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(c) 14.45 .46 (2.05) (.16) -- (1.75) (.32) -- (.32)
2008 15.34 .95 (.86) (.31) --* (.22) (.66) (.01) (.67)
2007(b) 14.86 .78 .49 (.24) -- 1.03 (.55) -- (.55)
Year Ended 6/30:
2006 15.72 .92 (.80) (.21) -- (.09) (.77) -- (.77)
2005 14.81 .94 1.04 (.11) -- 1.87 (.96) -- (.96)
2004 15.75 1.04 (.78) (.05) (.01) .20 (1.00) (.14) (1.14)
============================================================================================================================
Total Returns
--------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Asset Market Market Asset
Discounts Value Value Value** Value**
=============================================================================
FLORIDA INVESTMENT QUALITY (NQF)
- -----------------------------------------------------------------------------
Year Ended 4/30:
2009(c) $ -- 11.94 $ 9.54 (23.09)% (14.42)%
2008 -- 14.30 12.77 (4.79) (1.26)
2007(b) -- 15.16 14.11 12.93 7.08
Year Ended 6/30:
2006 -- 14.70 13.02 (11.13) (.85)
2005 -- 15.63 15.48 17.51 12.40
2004 -- 14.81 14.03 (9.61) .95
FLORIDA QUALITY INCOME (NUF)
- -----------------------------------------------------------------------------
Year Ended 4/30:
2009(c) -- 12.38 9.97 (19.62) (12.30)
2008 -- 14.45 12.75 (4.54) (1.48)
2007(b) -- 15.34 14.04 11.75 6.97
Year Ended 6/30:
2006 -- 14.86 13.07 (9.64) (.55)
2005 -- 15.72 15.27 17.42 12.89
2004 -- 14.81 13.84 (10.29) 1.29
=============================================================================
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***
------------------------------------------ ------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
FLORIDA INVESTMENT QUALITY (NQF)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(c) $195,492 1.30%**** 1.26%**** 7.24%**** 1.28%**** 1.24%**** 7.25%**** 10%
2008 234,106 1.68 1.21 6.62 1.67 1.20 6.63 23
2007(b) 251,475 1.73**** 1.21**** 6.24**** 1.72**** 1.19**** 6.25**** 13
Year Ended 6/30:
2006 243,913 1.20 1.20 6.21 1.19 1.19 6.22 6
2005 259,071 1.23 1.23 6.26 1.22 1.22 6.27 15
2004 245,045 1.25 1.25 6.92 1.25 1.25 6.92 23
FLORIDA QUALITY INCOME (NUF)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(c) 175,295 1.29**** 1.29**** 6.61**** 1.28**** 1.28**** 6.61**** 4
2008 204,552 1.78 1.22 6.38 1.77 1.21 6.39 26
2007(b) 219,447 1.78**** 1.23**** 6.09**** 1.76**** 1.21**** 6.11**** 7
Year Ended 6/30:
2006 212,504 1.22 1.22 6.06 1.21 1.21 6.06 8
2005 224,792 1.24 1.24 6.07 1.23 1.23 6.07 20
2004 211,659 1.25 1.25 6.83 1.25 1.25 6.83 38
====================================================================================================================================
Preferred Shares at End of Period
--------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
====================================================
FLORIDA INVESTMENT QUALITY (NQF)
- ----------------------------------------------------
Year Ended 4/30:
2009(c) $132,000 $25,000 $62,025
2008 132,000 25,000 69,338
2007(b) 132,000 25,000 72,628
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
FLORIDA QUALITY INCOME (NUF)
- ----------------------------------------------------
Year Ended 4/30:
2009(c) 117,000 25,000 62,456
2008 117,000 25,000 68,708
2007(b) 117,000 25,000 71,890
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
====================================================
* Rounds to less than $.01 per share.
** Total Return Based 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 may take 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 Based 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, 2008.
See accompanying notes to financial statements.
50-51 spread
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:
2009(c) $14.74 $ .47 $(1.67) $(.15) $ -- $(1.35) $(.34) $ -- $ (.34)
2008 15.43 .95 (.60) (.27) (.02) .06 (.69) (.06) (.75)
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)
INSURED FLORIDA TAX-FREE ADVANTAGE (NWF)
- ----------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(c) 14.15 .44 (1.55) (.14) -- (1.25) (.31) -- (.31)
2008 14.56 .90 (.41) (.27) -- .22 (.63) -- (.63)
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)
============================================================================================================================
Total Returns
--------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Asset Market Market Asset
Discounts Value Value Value* Value*
============================================================================
INSURED FLORIDA PREMIUM INCOME (NFL)
- ----------------------------------------------------------------------------
Year Ended 4/30:
2009(c) $ -- $13.05 $10.47 (18.76)% (9.29)%
2008 -- 14.74 13.26 (4.90) .47
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
INSURED FLORIDA TAX-FREE ADVANTAGE (NWF)
- ----------------------------------------------------------------------------
Year Ended 4/30:
2009(c) -- 12.59 10.25 (16.37) (8.95)
2008 -- 14.15 12.59 (3.45) 1.61
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)
============================================================================
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**
------------------------------------------ ------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
INSURED FLORIDA PREMIUM INCOME (NFL)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(c) $185,567 1.22%*** 1.22%*** 6.45%*** 1.19%*** 1.19%*** 6.48%*** 4%
2008 209,621 1.37 1.19 6.32 1.36 1.17 6.33 28
2007(b) 222,058 1.25*** 1.18*** 6.13*** 1.24*** 1.17*** 6.14*** 6
Year Ended 6/30:
2006 217,904 1.18 1.18 6.13 1.17 1.17 6.14 9
2005 233,779 1.16 1.16 6.14 1.16 1.16 6.15 12
2004 223,965 1.16 1.16 6.36 1.15 1.15 6.36 38
INSURED FLORIDA TAX-FREE ADVANTAGE (NWF)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(c) 48,875 1.29*** 1.29*** 6.03*** .90*** .90*** 6.42*** 1
2008 54,926 1.24 1.24 5.89 .78 .78 6.35 29
2007(b) 56,546 1.25*** 1.25*** 5.73*** .76*** .76*** 6.23*** 2
Year Ended 6/30:
2006 54,625 1.26 1.26 5.77 .76 .76 6.27 5
2005 57,296 1.24 1.24 5.77 .75 .75 6.26 7
2004 53,504 1.25 1.25 6.04 .74 .74 6.56 130
====================================================================================================================================
Preferred Shares at End of Period
--------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
====================================================
INSURED FLORIDA PREMIUM INCOME (NFL)
- ----------------------------------------------------
Year Ended 4/30:
2009(c) $111,000 $25,000 $66,794
2008 111,000 25,000 72,212
2007(b) 111,000 25,000 75,013
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
INSURED FLORIDA TAX-FREE ADVANTAGE (NWF)
- ----------------------------------------------------
Year Ended 4/30:
2009(c) 29,000 25,000 67,133
2008 29,000 25,000 72,350
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
====================================================
* Total Return Based 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 may take 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 Based 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, 2008.
See accompanying notes to financial statements.
52-53 spread
Annual Investment
Management Agreement
APPROVAL PROCESS
The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in
substance, that each investment advisory agreement between a fund and its
investment adviser will continue in effect from year to year only if its
continuance is approved at least annually by the fund's board members, including
by a vote of a majority of the board members who are not parties to the advisory
agreement or "interested persons" of any parties (the "Independent Board
Members"), cast in person at a meeting called for the purpose of considering
such approval. In connection with such approvals, the fund's board members must
request and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. Accordingly, at a meeting held on May 28-29, 2008 (the "May
Meeting"), the Boards of Trustees or Directors (as the case may be)(each, a
"Board" and each Trustee or Director, a "Board Member") of the Funds, including
a majority of the Independent Board Members, considered and approved the
continuation of the advisory agreement (each, an "Advisory Agreement") between
each Fund and Nuveen Asset Management ("NAM") for an additional one-year period.
In preparation for their considerations at the May Meeting, the Board also held
a separate meeting on April 23, 2008 (the "April Meeting"). Accordingly, the
factors considered and determinations made regarding the renewals by the
Independent Board Members include those made at the April Meeting.
In addition, in evaluating the Advisory Agreements, as described in further
detail below, the Independent Board Members reviewed a broad range of
information relating to the Funds and NAM, including absolute performance, fee
and expense information for the Funds as well as comparative performance, fee
and expense information for a comparable peer group of funds, the performance
information of recognized benchmarks (as applicable), the profitability of
Nuveen for its advisory activities (which includes its wholly owned
subsidiaries), and other information regarding the organization, personnel, and
services provided by NAM. The Independent Board Members also met quarterly as
well as at other times as the need arose during the year and took into account
the information provided at such meetings and the knowledge gained therefrom.
Prior to approving the renewal of the Advisory Agreements, the Independent Board
Members reviewed the foregoing information with their independent legal counsel
and with management, reviewed materials from independent legal counsel
describing applicable law and their duties in reviewing advisory contracts, and
met with independent legal counsel in private sessions without management
present. The Independent Board Members considered the legal advice provided by
independent legal counsel and relied upon their knowledge of NAM, its services
and the Funds resulting from their meetings and other interactions throughout
the year and their own business judgment in determining the factors to be
considered in evaluating the Advisory Agreements. Each Board Member may have
accorded different weight to the various factors in reaching his or her
conclusions with respect to a Fund's Advisory Agreement. The Independent Board
Members did not identify any single factor as all-important or controlling. The
Independent Board Members' considerations were instead based on a comprehensive
consideration of all the information presented. The principal factors considered
by the Board and its conclusions are described below.
54
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering renewal of the Advisory Agreements, the Independent Board Members
considered the nature, extent and quality of NAM's services, including advisory
services and administrative services. The Independent Board Members reviewed
materials outlining, among other things, NAM'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 applicable
fund product line. With respect to personnel, the Independent Board Members
evaluated the background, experience and track record of NAM's investment
personnel. In this regard, the Independent Board Members considered the
additional investment in personnel to support Nuveen fund advisory activities,
including in operations, product management and marketing as well as related
fund support functions, including sales, executive, finance, human resources and
information technology. The Independent Board Members also reviewed information
regarding portfolio manager compensation arrangements to evaluate NAM's ability
to attract and retain high quality investment personnel.
In evaluating the services of NAM, the Independent Board Members also considered
NAM's ability to supervise the Funds' other service providers and given the
importance of compliance, NAM's compliance program. Among other things, the
Independent Board Members considered the report of the chief compliance officer
regarding the Funds' compliance policies and procedures.
In addition to advisory services, the Independent Board Members considered the
quality of administrative services provided by NAM and its affiliates including
product management, fund administration, oversight of service providers,
shareholder services, administration of Board relations, regulatory and
portfolio compliance and legal support.
In addition to the foregoing services, the Independent Board Members also noted
the additional services that NAM or its affiliates provide to closed-end funds,
including, in particular, its secondary market support activities and the costs
of such activities. The Independent 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
maintaining an investor relations program to timely provide information and
education to financial advisers and investors; providing advertising and
marketing for the closed-end funds; maintaining its closed-end fund website; and
providing educational seminars. With respect to closed-end funds that utilize
leverage through the issuance of auction rate preferred securities ("ARPS"), the
Board has recognized the unprecedented market conditions in the auction rate
market industry with the failure of the auction process. The Independent Board
Members noted Nuveen's efforts and the resources and personnel employed to
analyze the situation, explore potential alternatives and develop and implement
solutions that serve the interests of the affected funds and all of their
respective shareholders. The Independent Board Members further noted Nuveen's
commitment and efforts to keep investors and financial advisers informed as to
its progress in addressing the ARPS situation through, among other things,
conference calls, press releases, and information posted on its website as well
as its refinancing activities. The Independent Board Members also noted Nuveen's
continued support for holders of preferred shares of its closed-end funds by,
among other things, seeking distribution for preferred shares with new market
participants, managing relations with remarketing agents and the broker
community, maintaining the leverage and risk management of leverage and
maintaining systems necessary to test compliance with rating agency criteria.
Based on their review, the Independent Board Members found that, overall, the
nature, extent and quality of services provided (and expected to be provided) to
the respective Funds under the Advisory Agreements were satisfactory.
55
ANNUAL INVESTMENT MANAGEMENT AGREEMENT
APPROVAL PROCESS (continued)
B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM
The Board considered the investment performance of 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 Independent
Board Members also reviewed portfolio level performance (which does not reflect
fund level fees, expenses and leverage), as described in further detail below.
In evaluating the performance information, the Board considered whether the Fund
has operated within its investment objectives and parameters and the impact that
the investment mandates may have had on performance. In addition, in comparing a
Fund's performance with that of its Performance Peer Group, the Independent
Board Members took into account that the closest Performance Peer Group in
certain instances may not adequately reflect the respective fund's investment
objectives and strategies thereby hindering a meaningful comparison of the
fund's performance with that of the Performance Peer Group.
The Independent Board Members also recognized that certain funds lack comparable
peers in which case their performance is measured against a more general
municipal category for various states. The closed-end municipal 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.
The Independent Board Members reviewed performance information including, among
other things, total return information compared with the Fund's Performance Peer
Group and recognized benchmarks for the one-, three-, and five-year periods (as
applicable) ending December 31, 2007 and with the Performance Peer Group for the
quarter and same yearly periods ending March 31, 2008 (as applicable). The
Independent Board Members also reviewed the Fund's portfolio level performance
(which does not reflect fund level fees and expenses (and leverage for
closed-end funds)) compared to recognized benchmarks for the one-, three-, and
five-year periods ending December 31, 2007 (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 Independent Board Members
determined that each Fund's investment performance over time had been
satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
The Board evaluated the management fees and expenses of each Fund
reviewing, among other things, such Fund's gross management fees (which
take into account breakpoints), net management fees (which take into
account fee waivers or reimbursements) and total expense ratios (before and
after expense reimbursements and/or waivers) in absolute terms as well as
compared to the gross management fees, net management fees (after waivers
and/or reimbursements) and total expense ratios (before and after waivers)
of a comparable universe of unaffiliated funds based on data provided by an
independent data provider (the "Peer Universe") and/or a more focused
subset of funds therein (the "Peer Group"). The Independent 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 reviewing the comparisons of fee and expense
information, the Independent Board Members took into account that in
certain instances various factors such as the size of the Fund relative to
peers, the size and particular composition of the Peer Group, the
investment objectives of the peers, expense anomalies, and the timing of
information used may impact the comparative data, thereby limiting the
ability to make a meaningful comparison. The Independent Board Members also
considered, among other things, the differences in the use of leverage and
the differences in the use of insurance as well as the states reflected in
a respective Peer Group for the state municipal funds (such as the use of a
56
general "other states" category for closed-end state funds (other than New
York and California)). In reviewing the fee schedule for a Fund, the
Independent Board Members also 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 closed-end funds launched since 1999). Based on their review of
the fee and expense information provided, the Independent Board Members
determined that each Fund's management fees and net total expense ratio
were reasonable in light of the nature, extent and quality of services
provided to the Fund.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Independent Board Members further reviewed information regarding the
nature of services and fee rates offered by NAM to other clients. Such
other clients include NAM's municipal separately managed accounts. In
evaluating the comparisons of fees, the Independent Board Members noted
that the fee rates charged to the Funds and other clients vary, among other
things, because of the different services involved and the additional
regulatory and compliance requirements associated with registered
investment companies, such as the Funds. Accordingly, the Independent 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 Independent 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. Given the inherent differences in the
products, particularly the extensive services provided to the Funds, the
Independent Board Members believe such facts justify the different levels
of fees.
3. PROFITABILITY OF NUVEEN
In conjunction with its review of fees, the Independent 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. The Independent Board Members reviewed the revenues
and expenses of Nuveen's advisory activities for the last two years and the
allocation methodology used in preparing the profitability data. The
Independent 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
Independent Board Members noted that they had also appointed an Independent
Board Member as a point person to review and keep them apprised of changes
to the profitability analysis and/or methodologies during the year. The
Independent Board Members considered Nuveen's profitability compared with
other fund sponsors prepared by two 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 Independent Board Members recognized the
subjective nature of determining profitability which may be affected by
numerous factors including the allocation of expenses. Further, the
Independent 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 Independent Board Members reviewed Nuveen's
methodology and assumptions for allocating expenses across product lines to
determine profitability. In reviewing profitability, the Independent Board
Members recognized Nuveen's investment in its fund business.
Based on its review, the Independent Board Members concluded that Nuveen's level
of profitability for its advisory activities was reasonable in light of the
services provided.
57
ANNUAL INVESTMENT MANAGEMENT AGREEMENT
APPROVAL PROCESS (continued)
In evaluating the reasonableness of the compensation, the Independent 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 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 Independent Board Members determined that the advisory fees and
expenses of the respective Fund were reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Independent Board Members recognized the
potential benefits resulting from the costs of a fund being spread over a larger
asset base. The Independent Board Members therefore considered whether the Funds
have appropriately benefited from any economies of scale and whether there is
potential realization of any further economies of scale. In considering
economies of scale, the Independent Board Members have recognized that economies
of scale are difficult to measure and predict with precision, particularly on a
fund-by-fund basis. Notwithstanding the foregoing, one method to help ensure the
shareholders share in these benefits is to include breakpoints in the advisory
fee schedule. Accordingly, the Independent Board Members reviewed and considered
the fund-level breakpoints in the advisory fee schedules that reduce advisory
fees. In this regard, given that the Funds are closed-end funds, the Independent
Board Members recognized that although the Funds may from time to time make
additional share offerings, the growth in their assets will occur primarily
through appreciation of each Fund's investment portfolio.
In addition to fund-level advisory fee breakpoints, the Board also considered
the Funds' complex-wide fee arrangement. 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 Independent Board Members
recognized that the complex-wide fee schedule was recently revised in 2007 to
provide for additional fee savings to shareholders and considered the amended
schedule. The Independent Board Members further considered that the complex-wide
fee arrangement seeks to provide the benefits of economies of scale to fund
shareholders when total fund complex assets increase, even if assets of a
particular fund are unchanged or have decreased. The approach reflects the
notion that some of Nuveen's costs are attributable to services provided to all
its funds in the complex and therefore all funds benefit if these costs are
spread over a larger asset base. Based on their review, the Independent 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.
E. INDIRECT BENEFITS
In evaluating fees, the Independent Board Members received and considered
information regarding potential "fall out" or ancillary benefits NAM or its
affiliates may receive as a result of its relationship with each Fund. In this
regard, the Independent Board Members considered 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.
58
In addition to the above, the Independent 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. The
Independent 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 Independent 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 Independent 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 Advisory
Agreements are fair and reasonable, that NAM's fees are reasonable in light of
the services provided to each Fund and that the Advisory Agreements be renewed.
59
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.
60
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.
61
Glossary of
TERMS USED in this REPORT
[] AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed", with current holders receiving a
formula-based interest rate until the next scheduled auction.
[] AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period.
It expresses the return that would have been necessary each year to equal
the investment's actual cumulative performance (including change in NAV or
market price and reinvested dividends and capital gains distributions, if
any) over the time period being considered.
[] AVERAGE EFFECTIVE MATURITY: The average of 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.
[] 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.
[] LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period
over which a bond's principal and interest will be paid, and consequently
is a measure of the sensitivity of a bond's or bond Fund's value to changes
when market interest rates change. Generally, the longer a bond's or Fund's
duration, the more the price of the bond or Fund will change as interest
rates change. Leverage-adjusted duration takes into account the leveraging
process for a Fund and therefore is longer than the duration of the Fund's
portfolio of bonds.
[] MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
[] NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated by
subtracting the liabilities of the Fund (including any Preferred shares
issued in order to leverage the Fund) from its total assets and then
dividing the remainder by the number of common shares outstanding. Fund
NAVs are calculated at the end of each business day.
[] TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal bond
investment.
[] 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.
62
Other Useful INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's 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, 2008, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities 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 (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 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) 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.
BOARD OF TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
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 or redeem shares of its own common or preferred
stock in the future at such times and in such amounts as is deemed advisable. No
shares were repurchased or redeemed during the period covered by this report.
Any future repurchases or redemptions will be reported to shareholders in the
next annual or semi-annual report.
63
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.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. Nuveen Investments
markets its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Rittenhouse, Santa Barbara,
Symphony and Tradewinds. In total, the Company managed $134 billion of assets on
September 30, 2008.
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
Fund details
Daily financial news
Investor education
Interactive planning tools
ESA-A-1008D
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
MAY 1-31, 2008 0 $0 0 1,225,500
JUNE 1-30, 2008 0 $0 0 1,225,500
JULY 1-9, 2008 0 $0 0 1,225,500
AUGUST 7-31, 2008 0 $0 0 1,420,000
SEPTEMBER 1-30, 2008 0 $0 0 1,420,000
OCTOBER 1-31, 2008 0 $0 0 1,420,000
TOTAL 0
* The registrant's first repurchase program, which authorized the repurchase
of 1,400,000 shares, was announced on July 10, 2007 and expired on July 9,
2008. A second repurchase program, which authorized the repurchase of
1,420,000 shares, was announced on August 7, 2008. Any repurchases made by
the registrant pursuant to the program were 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: See
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: See 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
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By (Signature and Title) /s/ Kevin J. McCarthy
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Kevin J. McCarthy
(Vice President and Secretary)
Date: January 9, 2009
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Gifford R. Zimmerman
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Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: January 9, 2009
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By (Signature and Title) /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: January 9, 2009
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