Semiannual Report April 30, 2002
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
INSURED QUALITY
NQI
INSURED OPPORTUNITY
NIO
PREMIER INSURED
INCOME
NIF
INSURED PREMIUM
INCOME 2
NPX
INSURED DIVIDEND
ADVANTAGE
NVG
DEPENDABLE,
TAX-FREE INCOME
BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
THE NUVEEN INVESTOR
See page 9
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photo of:
Timothy R. Schwertfeger
Chairman of the Board
sidebar text: "I urge you to consider receiving future Fund reports and other
information electronically ...see the inside front cover of this report for
detailed instructions."
Dear
SHAREHOLDER
I am pleased to report that during the period covered by this report, your Fund
continued to meet its primary objective of providing attractive tax-free monthly
income, while at the same time offering opportunities to reduce overall
portfolio volatility. Detailed information on your Fund's performance can be
found in the Portfolio Manager's Comments and Performance Overview sections of
this report. I urge you to take the time to read them.
I also urge you to consider receiving future Fund reports and other information
electronically via the Internet and e-mail rather than in hard copy. Not only
will you be able to receive the information faster, but this also may help lower
Fund expenses. Sign up is quick and easy - see the inside front cover of this
report for detailed instructions.
In addition to providing you with steady tax-free income, your Nuveen Fund also
features several characteristics that can help make it an essential part of your
overall investment strategy. These include careful research, constant
surveillance and judicious trading by Nuveen's seasoned portfolio management
team, with every action designed to supplement income, improve Fund structure,
better adapt to current market conditions or increase diversification. In
uncertain markets like these, prudent investors understand the importance of
diversification, balance, and risk management, all attributes your Nuveen Fund
can bring to your portfolio.
For more than 100 years, Nuveen has specialized in offering quality investments
such as these Nuveen Funds to those seeking to accumulate and preserve wealth.
Our mission continues to be to assist you and your financial advisor by offering
the investment services and products that can help you meet your financial
objectives. We thank you for continuing to choose Nuveen Investments as a
partner as you work toward that goal.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
June 15, 2002
1
Nuveen National Insured Municipal Closed-End Exchange-Traded Funds
(NQI, NIO, NIF, NPX, NVG)
Portfolio Manager's
COMMENTS
Portfolio manager Steve Krupa examines economic and market conditions, key
strategies, and the performance of the Nuveen National Insured Municipal
Closed-End Exchange-Traded Funds. Steve, who has 22 years of experience as an
investment professional at Nuveen, has managed NQI and NIO since their
inceptions in 1990 and 1991, respectively. He added NIF and NPX in 1998 and NVG
upon its inception in March 2002.
WHAT FACTORS HAD THE GREATEST INFLUENCE ON THE U.S. ECONOMY AND THE MUNICIPAL
MARKET DURING THIS REPORTING PERIOD?
The two major forces at work during the twelve months ended April 30, 2002, were
the general slowdown in economic growth and the Federal Reserve's aggressive
easing of short-term interest rates. In addition, the events of September 11,
2001, and the uncertain geopolitical climate that followed also have impacted
the economy and the markets.
In the municipal markets, the generally sluggish economic environment of the
past twelve months helped many securities perform well. In addition, the trend
toward increased issuance remained strong. Looking at the first four months of
2002, new issue supply reached $87 billion, up about 10% over January-April
2001. On the demand side, municipal bonds continued to be highly sought after by
individual investors looking for diversification, tax-free income and an
alternative to a volatile stock market. Institutional investors, especially
traditional purchasers such as property/casualty insurance companies and pension
plans, also have been active buyers in the new issue market.
HOW DID THESE NUVEEN FUNDS PERFORM OVER THE PAST TWELVE MONTHS?
For the year ended April 30, 2002, these Nuveen Funds produced total annual
returns on net asset value (NAV) as shown in the accompanying table. The annual
returns for the Lehman Brothers Insured Municipal Bond Index1 and relevant
Lipper Peer Group2 also are presented.
TOTAL RETURN LEHMAN LIPPER
MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2
-------------------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
4/30/02 EQUIVALENT3 4/30/02 4/30/02 4/30/02
-------------------------------------------------------------------------
NQI 6.06% 8.66% 9.39% 7.37% 8.21%
-------------------------------------------------------------------------
NIO 6.14% 8.77% 8.27% 7.37% 8.21%
-------------------------------------------------------------------------
NIF 6.23% 8.90% 7.93% 7.37% 8.21%
-------------------------------------------------------------------------
NPX 6.11% 8.73% 8.46% 7.37% 8.21%
-------------------------------------------------------------------------
NVG N/A N/A N/A --- ---
-------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
Over the past twelve months, the Fed's policy to reduce short-term interest
rates, combined with generally favorable market conditions, created a positive
total return environment for municipal bonds. The Funds' participation in the
market's gains is reflected, in part, in the total returns on NAV listed in the
above table. In a market characterized by rising bond values, funds or indexes
with longer durations4 would typically be expected to outperform funds or
indexes with shorter durations. As of April 30, 2002, the durations of the four
older Funds ranged from 9.63 to 12.33, compared with 8.60 for the unleveraged
Lehman Brothers Insured Municipal Bond Index. NVG was still in its initial
investing period as of April 30, 2002, and did not have a meaningful duration to
report as of that date.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With the Fed's policy of interest rate easing over the past year, the
dividend-payment capabilities of the four older Funds benefited from the use of
leverage, a strategy that can potentially enhance the dividends paid to common
shareholders. The amount of this benefit is tied in part to the short-term rates
the Funds pay their MuniPreferred(R) shareholders. For example, declining
short-term
1 The Funds' performances are compared with that of the Lehman Brothers
Insured Municipal Bond Index, an unleveraged index comprising a broad range
of insured municipal bonds. Results for the Lehman index do not reflect any
expenses.
2 The Funds' total returns are compared with the average annualized return of
the 22 funds in the Lipper Insured Leveraged Municipal Debt Funds category.
Fund and Lipper returns assume reinvestment of dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's market
yield on the indicated date and a federal income tax rate of 30%.
4 Duration is a measure of a Fund's NAV volatility in reaction to interest
rate movements. Fund duration, also known as leverage-adjusted duration,
takes into account the leveraging process for a Fund and therefore is
generally longer than the duration of the actual portfolio of individual
bonds that make up the Fund. Unless otherwise noted, references to duration
in this commentary are intended to indicate Fund duration.
2
rates can enable the Funds to reduce the amount of income they pay preferred
shareholders, which can leave more earnings to support common share dividends.
During the year ended April 30, 2002, steady or falling short-term interest
rates enabled a series of dividend increases for all four of the older Funds.
The level of short-term rates, the number and timing of bond calls, and the
interest rates at which we can reinvest the proceeds of any calls will all
influence the dividends of these Funds over the next twelve months. After the
close of the April 30, 2002, reporting period, NVG announced it would pay its
first monthly dividend on June 3, 2002.
Over the year ended April 30, 2002, as the stock market remained volatile and
the bond market continued to perform well, many investors turned to tax-free
fixed-income investments as a way to add balance to their portfolios and reduce
their overall portfolio risk. As a result, the share prices of the four older
Funds improved (see the charts on the individual Performance Overview pages).
NVG has traded well since its IPO in late March 2002. As investors recognized
the opportunity offered by these Funds, increased demand caused their discounts
(share price below NAV) to narrow over the twelve months ended April 30, 2002.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN NATIONAL INSURED FUNDS DURING
THE REPORTING PERIOD APRIL 30, 2002?
During this period, we focused on enhancing the dividend-paying capabilities and
improving the call protection of all of these Funds. Each of the four older
Funds has experienced some bond calls recently, and the timing and number of
future calls will depend largely on the level of interest rates over time.
Currently, low rate levels have caused us to hold higher-yielding bonds as long
as practical to help support the Funds' dividends while we look for attractive
replacement opportunities. We believe the potential call exposure in each of the
four older Funds is very manageable.
As we've had call proceeds to invest, we've been looking at insured airport and
general obligation bonds, among other sectors. In our opinion, insured bonds in
these areas had sold off through the fall and winter to some very attractive
levels, and we've been able to find a number of attractive opportunities. In
addition to providing increased call protection, we believe these undervalued
bonds will help maintain the Funds' income and dividend-paying capabilities over
time.
All of the Funds remain 100% invested in bonds that are insured or backed by
U.S. guaranteed securities. NVG has the ability to invest up to 20% of its
assets in investment-grade quality securities. We believe this strong credit
quality in today's uncertain economic environment is one of the reasons behind
the Funds' strong performance over this reporting period.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THESE FUNDS IN
PARTICULAR?
In general, our outlook for the fixed-income markets over the next twelve months
remains positive. We believe the U.S. economy is headed for recovery, but one
that may take longer and see a slower pace of growth than some are now
predicting. We believe inflation and interest rates should remain relatively low
over the near term, and we think new municipal issuance should continue to be
strong. We anticipate the demand for tax-exempt municipal bonds will remain firm
as investors look for ways to rebalance their portfolios and reduce risk.
Over the next six months, we plan to keep Fund durations at about their present
levels as we continue to focus on adding value whenever possible. We will be
looking very closely at insured California and New York bonds, since these
states traditionally are large issuers and their insured bonds often can provide
added value when compared with insured bonds from other states. Looking at NVG
specifically, we expect to complete the investing process for the Fund's
MuniPreferred(R) shares and, going forward, will look to manage this new Fund in
a manner that is very consistent with the strategies we use for the other
insured Funds.
Overall, we believe all of these Funds will continue to play an important role
in investors' long-range financial programs, providing balance and
diversification, dependable tax-free income, quality investments, and a measure
of security in uncertain times.
3
Nuveen Insured Quality Municipal Fund, Inc.
Performance
OVERVIEW As of April 30, 2002
NQI
[Pie chart]
Credit Quality
Insured 88%
Insured and U.S. Guaranteed 11%
U.S. Guaranteed 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.05
--------------------------------------------------
Common Share Net Asset Value $15.31
--------------------------------------------------
Market Yield 6.06%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.66%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $579,558
--------------------------------------------------
Average Effective Maturity (Years) 22.50
--------------------------------------------------
Leverage-Adjusted Duration 11.79
--------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 12/90)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 9.96% 9.39%
--------------------------------------------------
5-Year 6.57% 6.60%
--------------------------------------------------
10-Year 6.43% 7.09%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Transportation 20%
--------------------------------------------------
Healthcare 17%
--------------------------------------------------
Utilities 15%
--------------------------------------------------
U.S. Guaranteed 12%
--------------------------------------------------
Tax Obligation/General 11%
--------------------------------------------------
[Bar chart]
2001-2002 Monthly Tax-Free Dividends Per Share2
5/01 0.07
6/01 0.07
7/01 0.07
8/01 0.07
9/01 0.0715
10/01 0.0715
11/01 0.0715
12/01 0.074
1/02 0.074
2/02 0.074
3/02 0.076
4/02 0.076
[Line chart]
Share Price Performance
Weekly Closing Price
Past performance is not predictive of future results.
5/1/01 14.5
14.52
14.55
14.2
14.36
14.4
14.27
14.6
14.43
14.54
14.55
14.45
14.51
14.67
14.9
14.81
14.95
15.04
15.08
14.99
13.95
14.82
15
14.89
15
14.88
15
15.08
14.48
14.5
14.47
14.52
14.25
14.14
14.45
14.76
14.79
15
15
15.05
15.13
15.15
15.19
15.3
15.06
14.89
14.35
14.7
14.75
14.8
14.75
4/30/02 15
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%.
2 The Fund also paid shareholders a capital gains and net ordinary income
distribution in December 2001 of $0.0243 per share.
4
Nuveen Insured Municipal Opportunity Fund, Inc.
Performance
OVERVIEW As of April 30, 2002
NIO
[Pie chart]
Credit Quality
Insured 88%
Insured and U.S. Guaranteed 10%
U.S. Guaranteed 2%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.94
--------------------------------------------------
Common Share Net Asset Value $15.22
--------------------------------------------------
Market Yield 6.14%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.77%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $1,233,754
--------------------------------------------------
Average Effective Maturity (Years) 22.92
--------------------------------------------------
Leverage-Adjusted Duration 12.33
--------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 9/91)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 11.88% 8.27%
--------------------------------------------------
5-Year 6.04% 6.24%
--------------------------------------------------
10-Year 7.17% 7.28%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Transportation 16%
--------------------------------------------------
Water and Sewer 14%
--------------------------------------------------
U.S. Guaranteed 12%
--------------------------------------------------
Healthcare 12%
--------------------------------------------------
Tax Obligation/Limited 12%
--------------------------------------------------
[Bar chart]
2001-2002 Monthly Tax-Free Dividends Per Share2
5/01 0.0715
6/01 0.0725
7/01 0.0725
8/01 0.0725
9/01 0.0735
10/01 0.0735
11/01 0.0735
12/01 0.075
1/02 0.075
2/02 0.075
3/02 0.0765
4/02 0.0765
[Line chart]
Share Price Performance
Weekly Closing Price
Past performance is not predictive of future results.
5/1/01 14.21
14.22
14.11
13.95
14.11
14.14
14.07
14.34
14.56
14.53
14.51
14.45
14.58
14.7
14.91
14.92
14.85
14.93
14.93
14.93
14.05
14.69
14.74
14.7
14.73
14.62
14.93
14.92
14.48
14.21
14.6
14.36
14.29
14.26
14.39
14.47
14.6
14.94
14.88
14.92
15.07
15.02
15.14
15.02
14.79
14.62
14.35
14.62
14.67
14.75
14.7
4/30/02 14.82
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%.
2 The Fund also paid shareholders a capital gains and net ordinary income
distribution in December 2001 of $0.0180 per share.
5
Nuveen Premier Insured Municipal Income Fund, Inc.
Performance
OVERVIEW As of April 30, 2002
NIF
[Pie chart]
Credit Quality
Insured 80%
Insured and U.S. Guaranteed 7%
U.S. Guaranteed 13%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.12
--------------------------------------------------
Common Share Net Asset Value $15.11
--------------------------------------------------
Market Yield 6.23%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.90%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $291,434
--------------------------------------------------
Average Effective Maturity (Years) 17.12
--------------------------------------------------
Leverage-Adjusted Duration 9.89
--------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 12/91)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 10.63% 7.93%
--------------------------------------------------
5-Year 6.67% 5.92%
--------------------------------------------------
10-Year 6.73% 7.04%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
U.S. Guaranteed 20%
--------------------------------------------------
Transportation 19%
--------------------------------------------------
Utilities 16%
--------------------------------------------------
Healthcare 15%
--------------------------------------------------
Tax Obligation/Limited 11%
--------------------------------------------------
[Bar chart]
2001-2002 Monthly Tax-Free Dividends Per Share
5/01 0.0735
6/01 0.075
7/01 0.075
8/01 0.075
9/01 0.075
10/01 0.075
11/01 0.075
12/01 0.0765
1/02 0.0765
2/02 0.0765
3/02 0.0785
4/02 0.0785
[line chart]
Share Price Performance
Weekly Closing Price
Past performance is not predictive of future results.
5/01/01 14.45
14.4
14.4
14.32
14.52
14.72
14.64
14.85
14.9
14.87
14.78
14.85
14.83
14.78
15.12
15.04
15.1
15.25
15.18
15.2
14.32
14.7
15.02
14.76
14.91
15
15.3
15.15
14.63
14.59
14.85
14.66
14.63
14.78
14.9
14.75
14.88
15.27
15.2
15.34
15.5
15.4
15.37
15.26
15.2
14.6
14.71
14.85
14.89
15.16
14.95
4/30/02 15.07
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%.
6
Nuveen Insured Premium Income Municipal Fund 2
Performance
OVERVIEW As of April 30, 2002
NPX
[Pie chart]
Credit Quality
Insured 92%
Insured and U.S. Guaranteed 8%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $13.45
--------------------------------------------------
Common Share Net Asset Value $13.65
--------------------------------------------------
Market Yield 6.11%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.73%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $508,554
--------------------------------------------------
Average Effective Maturity (Years) 18.63
--------------------------------------------------
Leverage-Adjusted Duration 9.63
--------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 7/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 11.18% 8.46%
--------------------------------------------------
5-Year 9.16% 6.85%
--------------------------------------------------
Since Inception 4.82% 5.34%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Utilities 22%
--------------------------------------------------
Transportation 16%
--------------------------------------------------
Healthcare 14%
--------------------------------------------------
Housing/Multifamily 10%
--------------------------------------------------
Tax Obligation/Limited 10%
--------------------------------------------------
[Bar chart]
2001-2002 Monthly Tax-Free Dividends Per Share
5/01 0.0625
6/01 0.0645
7/01 0.0645
8/01 0.0645
9/01 0.0655
10/01 0.0655
11/01 0.0655
12/01 0.0665
1/02 0.0665
2/02 0.0665
3/02 0.0685
4/02 0.0685
[Line chart]
Share Price Performance
Weekly Closing Price
Past performance is not predictive of future results.
5/1/01 12.81
12.86
12.83
12.8
12.75
12.94
13.09
13.07
12.96
13.22
13.17
13.29
13.4
13.42
13.7
13.5
13.5
13.56
13.84
13.98
13
13.8
13.86
13.75
13.75
13.61
13.8
13.78
13.63
13.56
13.67
13.44
13.02
12.85
13.28
13.35
13.3
13.49
13.38
13.59
13.62
13.67
13.74
13.68
13.15
13.06
12.91
13.01
13.1
13.35
13.36
4/30/02 13.4
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%.
7
Nuveen Insured Dividend Advantage Municipal Fund
Performance
OVERVIEW As of April 30, 2002
NVG
[Pie chart]
Credit Quality
Insured 100%
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $15.01
---------------------------------------------------
Common Share Net Asset Value $14.62
---------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $419,577
---------------------------------------------------
Average Effective Maturity (Years) 27.56
---------------------------------------------------
TOTAL RETURN (Inception 3/02)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
Since Inception 0.07% 2.02%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
Education and Civic Organizations 25%
---------------------------------------------------
Water and Sewer 20%
---------------------------------------------------
Transportation 18%
---------------------------------------------------
Tax Obligation/General 13%
---------------------------------------------------
Utilities 10%
---------------------------------------------------
THE FUND PAID ITS FIRST REGULAR MONTHLY DIVIDEND OF $0.0775 PER SHARE ON JUNE 3,
2002.
8
V1
PHOTO OF: 2 boys walking with baseball mitts and bat.
THE NUVEEN INVESTOR
BOND SURVEILLANCE - A HIGH PRIORITY AT NUVEEN
The Enron scandal has raised numerous questions about the real value of American
securities. Investors want to know what safeguards are in place to inspire their
trust and ensure their holdings are dependable. The Nuveen Investor recently
spoke with David Blair, Assistant Vice President and Senior Analyst at Nuveen,
about the research and surveillance processes used for Nuveen funds.
HOW DO NUVEEN'S RESEARCH ANALYSTS EVALUATE BONDS PRIOR TO PURCHASE?
We evaluate factors impacting market sectors, issuers and specific bonds and
assign credit ratings to bonds we consider for purchase. We seek to purchase
bonds with stable and improving credit characteristics, which have attractive
prices and yields relative to other bonds in their sectors.
HOW DO YOU CONDUCT YOUR RESEARCH?
We conduct detailed analyses that often involve site visits and discussions with
managers of the projects being financed. Since Nuveen is a major investor with
large buying power, issuers and project managers are willing to listen to us and
respond to our concerns.
IS THE RESEARCH AND ANALYSIS PROCESS ANY DIFFERENT WHEN CONSIDERING HIGH-YIELD
BONDS?
Up to 20 percent of some funds can be invested in below investment grade bonds
to help the fund attain a higher yield. This underscores the need for research.
If one of our 16 analysts believes a high-yield bond should be purchased, a
second analyst reviews the issue as well.
HOW DO YOU MONITOR THE VARIOUS BONDS ONCE THEY'VE BEEN PURCHASED?
We have a proprietary database with information and analysis on the bonds Nuveen
holds in its funds. Among other things, we are able to evaluate risk exposure to
sectors, issuers and specific bonds on an on-going basis.
HOW DOES THE RESEARCH DEPARTMENT COMMUNICATE THE INFORMATION GATHERED?
We conduct biweekly meetings within the research department and weekly meetings
with portfolio managers. We also write-up our findings and distribute them with
"buy," "hold" or "sell" recommendations to portfolio managers.
(continued on page 11)
Volume ONE 2002
INSIDE
9 Bond Surveillance -
A High Priority at Nuveen
10 Is it Time to Rethink
Your Bond Strategy?
11 Many Investors Continue
to Find Solutions with
Professional Advice
12 Fund Reports
Available Online
12 ETFConnect:
The Source for All
Exchange-Traded Funds
(C)2002 Nuveen Investments.
All rights reserved.
logo: NUVEEN Investments
9
V1
IS IT TIME TO RETHINK YOUR BOND STRATEGY?
Significant stock market losses in recent history have sent many investors
toward bonds as a way to potentially cut their losses and balance
equity-dominated portfolios. While many consider bonds a set-and-forget
investment, there are several circumstances that might prompt you to reassess --
and perhaps revamp -- your bond holdings.
TAX BRACKET CHANGES
The Economic Growth and Tax Relief Reconciliation Act of 2001 has dropped tax
brackets a percentage point this year, but a higher salary, large bonus, sale of
assets or retirement may push you into a higher tax bracket for 2002.
If you are in a higher tax bracket and want to generate an income stream without
raising your tax burden, tax-free municipal bonds may be a prudent option. Even
if you are in a lower tax bracket, municipal bonds could make sense. The
question is whether municipal or taxable bonds will deliver a better taxable
yield.
RETIREMENT PLANS CHANGE
Whether you are near retirement or are currently enjoying it, you may want to
consider rebalancing your retirement accounts with less stock and more bonds, to
potentially reduce risk and try to preserve the assets that you have
accumulated. If you are just entering retirement you may want to make tax-free
municipal bonds a part of your portfolio to emphasize income generation and
protection from taxation.
RISK TOLERANCE CHANGES
The recent market volatility and market downturn may have caused many investors
to reevaluate their tolerance for risk. On the other hand, your portfolio might
have performed well over the last few years and you may not need to take on
extra risk to meet your long-term goals. In either situation you could take a
look at your bond portfolio and determine whether you need to make changes to
correspond with your tolerance for risk.
PORTFOLIO CHANGES
If you make significant changes to one or more of your investments, you'll want
to look at your portfolio as a whole, particularly with regard to overall asset
allocation. You may need to do some rebalancing to stay on track with your
investment strategy.
Your financial advisor can help. Regardless of how your circumstances change, he
or she can provide up-to-date information on the bond market and various funds
to help you decide how to maximize your returns consistent with your short- and
long-term financial goals.
No investment is risk free and some investments carry more risk than others. It
is important to know what the risks are, to evaluate them against any potential
rewards, and to determine your tolerance for risk when selecting an investment.
Photo of: bridge to lighthouse
Photo of: 2 toddlers playing
The Nuveen Investor Vol 02.1
LOGO: NUVEEN Investments
10
V1
photo: clouds
photo: woman and girl
MANY INVESTORS CONTINUE TO FIND SOLUTIONS WITH PROFESSIONAL ADVICE
For many investors, current financial markets are confusing and frustrating.
According to research conducted for the Forum for Investor Advice*, that's the
number one reason many turn to a financial advisor. They want someone to suggest
ideas and provide consultation, dialogue and professional advice.
Investors say their advisors are helpful in other key ways, including...
o Saving time. After consultation, investors note that the second most
important reason for using an advisor is to have someone else monitor their
portfolio, reducing the amount of time they spend on investing.
o Help in sorting through information. Investors in the 21st century have
more products from which to choose than in the past. For example, there are
approximately 8,000 mutual funds today, up from 3,000 in 1990.
o Assistance in setting financial goals. According to investors who use a
financial advisor, they are more likely to have a plan for a specific
financial goal than do-it-yourself investors.
o Staying focused. Advisor-assisted investors are more likely than
do-it-yourself investors to have developed a comprehensive investment
program.
o Peace of mind. Investors say their comfort level in all types of markets is
higher when using an advisor for a "second opinion" on an investment
decision.
*The survey of 324 investors was conducted in December of 2000 by Market Facts
and analyzed by New York based Neuwirth Research. Of the 324, 166 said they had
an ongoing relationship with a financial advisor, while 157 described themselves
as do-it-yourselfers.
--------------------------------------------------------------------------------
(continued from page 9)
HOW ARE PROBLEM BONDS IDENTIFIED AND HANDLED?
We conduct surveillance on our bonds on a regular basis to ensure, among other
things, that deteriorating bonds are identified early. We then discuss any
emerging problems and potential courses of action with the portfolio manager.
HOW MANY ISSUES DOES THE RESEARCH DEPARTMENT FOLLOW?
We follow 12 sectors and 1,500 uninsured bonds, worth about $18 billion of
Nuveen's $45 billion in total municipal assets. The remaining $27 billion in
municipal assets are insured or escrowed (backed by Treasury bonds). For the
insured bonds, we monitor closely on a regular basis the insurers guaranteeing
the bonds.
WILL RESEARCH AND SURVEILLANCE CHANGE IN LIGHT OF PROBLEMS WITH ENRON
SECURITIES?
Overall, our investment process and surveillance have worked well and been
effective. However, we meet as a group on a regular basis and are constantly
evaluating ways to improve the process to respond to issues and the market
environment.
The Nuveen Investor Vol 02.1
LOGO: Nuveen Investments
11
V1
LOOK AHEAD...
FUND REPORTS AVAILABLE ONLINE
Nuveen Fund information is now available online. Once you register, you'll
receive an e-mail notice with a link to your Fund's reports and other
information just as soon as it is ready. Registering takes only a few minutes.
If you receive statements from a brokerage firm or financial advisor, go to
WWW.INVESTORDELIVERY.COM. Enter your personal 13-character enrollment number
imprinted on the address sheet of this report near your name. From the options
on the follow-up page, select the New Enrollment-Create screen. Once there,
enter your e-mail address and a personal, four-digit PIN. Hit the Submit button.
Confirm the information you entered is correct, then hit Submit again.
[picture of InvestorDelivery.com website]
If you receive statements directly from Nuveen, go to WWW.NUVEEN.COM. Select the
Access Your Account tab, then select E-Report Enrollment. Finally, click on the
Enrollment Page. Once there, you'll need to provide your social security number
and e-mail address. Click on Enroll.
[picture of nuveen.com website]
After registering, you should receive a confirming e-mail within 24 hours. If
not, repeat these steps to ensure all information is accurate. You can use this
same process if you need to change your registration information or want to
cancel Internet viewing. The e-mail address you provide is strictly confidential
and will only be used to notify you of shareholder information.
--------------------------------------------------------------------------------
The information in this newsletter should not be construed as specific tax or
investment advice. Contact your advisor for information about your particular
situation.
--------------------------------------------------------------------------------
ETFCONNECT: THE SOURCE FOR ALL EXCHANGE-TRADED FUNDS
Last fall, Nuveen launched ETFConnect, the industry's first website featuring
all-encompassing information on exchanged-traded funds. Whatever you're looking
for in the world of Index ETFs or Closed-End Exchange-Traded Funds - prices,
NAVs, dividend information, performance histories, new developments - this is
the place. Highlights include Quick Facts sheets for more than 500 funds, a
multi-fund search capability, website links, a list of fund sponsors, tools for
portfolio tracking, and a continually updated education center. Check out
WWW.ETFCONNECT.COM.
[picture of etfconnect.com website]
The Nuveen Investor Vol 02.1
Logo: Nuveen Investments
12
Nuveen Insured Quality Municipal Fund, Inc. (NQI)
Portfolio of
Investments April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 3.0%
$ 10,000 Pima County Industrial Development Authority, Arizona, 7/02 at 101.00 AAA $ 10,314,500
Healthcare System Revenue Bonds (Carondelet Health
Services, Inc.), St. Joseph's and St. Mary's Hospitals and
Health Centers Issue, Series 1991, 6.750%, 7/01/16
6,980 Tucson Business Development Finance Corporation, Arizona, 7/02 at 102.00 AAA 7,170,345
Local Development Lease Revenue Refunding Bonds,
Series 1992, 6.250%, 7/01/08
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.5%
8,360 Arkansas Development Finance Authority, Single Family 7/05 at 102.00 AAA 8,843,208
Mortgage Revenue Bonds (Mortgage-Backed Securities
Program), 1995 Series B, 6.700%, 7/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 21.7%
8,595 Alameda County Public Facilities Corporation, California, 9/06 at 102.00 AAA 9,877,202
Certificates of Participation (1991 Financing Project), 6.000%, 9/01/21
(Pre-refunded to 9/01/06)
12,695 Antioch Area Public Facilities Financing Agency, California, 8/02 at 102.00 AAA 12,738,290
Community Facilities District No. 1989-1, Special Tax Bonds,
Series 1993, 5.000%, 8/01/18
13,175 California Pollution Control Financing Authority, Pollution Control 9/09 at 101.00 AAA 13,293,839
Revenue Refunding Bonds (Southern California Edison
Company), Series 1999A, 5.450%, 9/01/29
5,500 California Statewide Communities Development Authority, 7/04 at 102.00 AAA 5,954,630
San Diego, Certificates of Participation (The Salk Institute
for Biological Studies), 6.200%, 7/01/24
Foothill/Eastern Transportation Corridor Agency, California,
Toll Road Refunding Revenue Bonds, Series 1999:
22,985 0.000%, 1/15/24 1/10 at 44.52 AAA 6,449,591
22,000 0.000%, 1/15/31 1/10 at 29.11 AAA 4,002,900
50,000 0.000%, 1/15/37 1/10 at 20.19 AAA 6,298,500
5,000 Garden Grove, California, Certificates of Participation (Financing 3/12 at 101.00 AAA 4,939,400
Project), Series 2002A, 5.125%, 3/01/32
5,000 Inland Empire Solid Waste Financing Authority, California, 8/06 at 102.00 AAA 5,685,150
Revenue Bonds (Landfill Improvement Financing Project),
1996 Series B, 6.000%, 8/01/16 (Alternative Minimum Tax)
(Pre-refunded to 8/01/06)
8,000 Los Angeles Unified School District, California, General 7/12 at 100.00 AAA 8,629,600
Obligation Bonds (Election of 1997), 2002 Series E,
5.500%, 7/01/16
5,548 Moreno Valley Public Financing Authority, California, Assisted 1/12 at 105.00 Aaa 6,603,784
Living Housing Revenue Bonds (GNMA Collateralized - CDC
Assisted Living Project), Series 2000A, 7.500%, 1/20/42
6,600 Ontario Redevelopment Financing Authority, San Bernardino 8/03 at 102.00 AAA 7,056,522
County, California, 1993 Revenue Bonds (Ontario
Redevelopment Project No. 1), 5.850%, 8/01/22
5,000 City and County of San Francisco Airports Commission, 1/08 at 102.00 AAA 4,783,500
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 15A, 5.000%, 5/01/28 (Alternative
Minimum Tax)
City and County of San Francisco Airports Commission,
California, San Francisco International Airport, Second Series
Revenue Refunding Bonds, Issue 27A:
7,200 5.125%, 5/01/21 (Alternative Minimum Tax) 5/11 at 100.00 AAA 7,122,456
22,690 5.250%, 5/01/31 (Alternative Minimum Tax) 5/11 at 100.00 AAA 22,439,956
13
Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued)
Portfolio of Investments April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 1.8%
$ 5,630 E-470 Public Highway Authority, Arapahoe County, Colorado, 8/05 at 103.00 AAA $ 6,367,924
Capital Improvement Trust Fund Highway Revenue Bonds
(E-470 Project), Vehicle Registration Fee Bonds,
6.150%, 8/31/26 (Pre-refunded to 8/31/05)
3,750 City and County of Denver, Colorado, Airport Revenue Bonds, 11/06 at 101.00 AAA 3,810,563
Series 1996D, 5.500%, 11/15/25
105 Jefferson County, Colorado, Single Family Revenue Refunding 10/02 at 102.00 AAA 107,192
Bonds, Series 1991A, 8.875%, 10/01/13
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.6%
9,500 Washington Convention Center Authority, District of Columbia, 10/08 at 101.00 AAA 9,297,460
Senior Lien Dedicated Tax Revenue Bonds, Series 1998,
5.000%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.5%
6,645 Florida Housing Finance Agency, Single Family Mortgage 7/04 at 102.00 AAA 6,855,779
Revenue Bonds, 1994 Series B, 6.650%, 7/01/26
(Alternative Minimum Tax)
20,000 Lee County, Florida, Airport Revenue Bonds, Series 2000A, 5.750%, 10/10 at 101.00 AAA 20,697,200
10/01/25 (Alternative Minimum Tax)
4,115 Miami-Dade County Housing Finance Authority, Florida, 7/11 at 100.00 AAA 4,199,440
Multifamily Housing Revenue Bonds (Monterey Pointe
Apartments Project), Series 2001-2A, 5.850%, 7/01/37
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 7.1%
State of Hawaii, Airports System Revenue Bonds, Refunding
Series 2000B:
8,785 6.625%, 7/01/18 (Alternative Minimum Tax) 7/10 at 101.00 AAA 9,800,107
7,000 6.000%, 7/01/19 (Alternative Minimum Tax) 7/10 at 101.00 AAA 7,474,740
6,130 Hawaii Department of Budget and Finance, Special Purpose 12/02 at 102.00 AAA 6,376,978
Revenue Bonds (Hawaiian Electric Company, Inc. and
Subsidiaries Projects), Series 1992, 6.550%, 12/01/22 (Alternative
Minimum Tax)
16,180 Hawaii Department of Budget and Finance, Special Purpose 5/06 at 101.00 AAA 17,358,713
Revenue Bonds (Hawaiian Electric Company, Inc. and Subsidiaries
Projects), Series 1996A, 6.200%, 5/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 21.7%
10,000 City of Chicago, Illinois, General Obligation Bonds, Project 7/05 at 102.00 AAA 11,160,000
Series 1995, 6.125%, 1/01/16 (Pre-refunded to 7/01/05)
635 Chicago School Reform Board of Trustees of the Board of 12/07 at 102.00 AAA 623,443
Education of the City of Chicago, Illinois, Unlimited Tax
General Obligation Bonds (Dedicated Tax Revenues),
Series 1997A, 5.250%, 12/01/30
6,000 City of Chicago, Illinois, Chicago-O'Hare International Airport, 1/05 at 102.00 AAA 6,530,520
General Airport Second Lien Revenue Refunding Bonds,
1994 Series A, 6.375%, 1/01/12
9,500 City of Chicago, Illinois, Chicago-O'Hare International Airport, 1/10 at 101.00 AAA 9,775,500
General Airport Second Lien Revenue Refunding Bonds,
1999 Series, 5.500%, 1/01/15 (Alternative Minimum Tax)
6,825 Chicago Public Building Commission, Illinois, Building Revenue 12/03 at 102.00 AAA 7,331,756
Bonds (Board of Education of the City of Chicago), Series 1993A,
5.750%, 12/01/18 (Pre-refunded to 12/01/03)
7,165 Illinois Development Finance Authority, Revenue Bonds 8/09 at 101.00 AAA 7,256,784
(Bradley University Project), Series 1999, 5.500%, 8/01/29
25,000 Illinois Health Facilities Authority, Revenue Bonds (Iowa Health 2/10 at 101.00 AAA 25,988,750
System), Series 2000, 5.875%, 2/15/30
33,855 State of Illinois, General Obligation Bonds (Illinois FIRST), 4/12 at 100.00 AAA 33,755,466
Series 2002, 5.250%, 4/01/27
13,275 State of Illinois, General Obligation Bonds (Illinois FIRST), 5/11 at 100.00 AAA 13,248,052
Series 2001, 5.250%, 5/01/26
10,000 University of Illinois, Certificates of Participation (Utility 8/11 at 100.00 AAA 10,039,300
Infrastructure Projects), Series 2001B, 5.250%, 8/15/21
14
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.8%
$ 6,000 Jasper County, Indiana, Collateralized Pollution Control 7/02 at 101.00 AAA $ 6,188,700
Refunding Revenue Bonds (Northern Indiana Public Service
Company Project), Series 1991, 7.100%, 7/01/17
4,230 City of Rockport, Indiana, Pollution Control Revenue Refunding 9/02 at 101.00 AAA 4,368,321
Bonds (Indiana Michigan Power Company Project), Series B,
7.600%, 3/01/16
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 3.6%
Kentucky Economic Development Finance Authority, Health
System Revenue Bonds (Norton Healthcare Inc.), Series 2000C:
6,345 0.000%, 10/01/27 10/13 at 101.00 AAA 5,432,081
18,185 0.000%, 10/01/28 10/13 at 101.00 AAA 15,552,539
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.3%
13,170 City of New Orleans, Louisiana, General Obligation Refunding 10/05 at 101.00 AAA 14,235,716
Bonds, Series 1995, 6.200%, 10/01/21
4,720 Orleans Levee District (A Political Subdivision of the State of 12/05 at 103.00 AAA 5,070,224
Louisiana), Public Improvement Bonds, Series 1986,
5.950%, 11/01/15
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.5%
8,000 Maine Health and Higher Educational Facilities Authority, 7/09 at 101.00 AAA 8,416,480
Revenue Bonds, Series 1999B, 6.000%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.3%
7,535 Maryland Transportation Authority, Baltimore-Washington 3/12 at 101.00 AAA 7,789,608
International Airport, Parking Revenue Bonds, Series 2002B,
5.500%, 3/01/18 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.3%
7,500 Massachusetts Development Finance Authority, Revenue 2/12 at 100.00 AAA 7,280,850
Bonds (100 Cambridge Street Redevelopment MSRB Project),
2002 Series A, 5.125%, 2/01/34 (WI, settling 5/02/02)
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.8%
4,750 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/09 at 102.00 AAA 4,803,058
Bonds (Detroit Edison Company Pollution Control Project),
Collateralized Series 1999A, 5.550%, 9/01/29 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.1%
557 City of St. Louis Park, Minnesota, Single Family Residential 10/02 at 101.00 Aaa 563,004
Mortgage Revenue Refunding Bonds (GNMA Mortgage-Backed
Securities Program), Series 1991-A, 7.250%, 4/20/23
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 2.8%
2,545 Harrison County Wastewater Management District, Mississippi, No Opt. Call AAA 3,399,840
Wastewater Treatment Facilities Revenue Refunding Bonds,
Series 1991A, 8.500%, 2/01/13
2,715 Harrison County Wastewater Management District, Mississippi, No Opt. Call AAA 3,485,924
Wastewater Treatment Facilities Revenue Refunding Bonds,
Series 1991B, 7.750%, 2/01/14
8,255 Mississippi Home Corporation, Single Family Mortgage Revenue 6/06 at 105.00 Aaa 9,256,827
Bonds (GNMA Collateralized Home Mortgage Program),
Series 1996C, 7.600%, 6/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.0%
5,000 St. Louis Municipal Finance Corporation, Missouri, Leasehold 2/06 at 102.00 AAA 5,588,350
Revenue Improvement Bonds (City Justice Center), Series 1996A
(City of St. Louis Lessee), 6.000%, 2/15/19 (Pre-refunded to 2/15/06)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 9.8%
43,700 Director of the State of Nevada, Department of Business and 1/10 at 100.00 AAA 43,277,858
Industry, Revenue Bonds (Las Vegas Monorail Project), 1st Tier
Series 2000, 5.375%, 1/01/40
13,185 Washoe County, Nevada, Hospital Refunding Revenue Bonds 6/04 at 102.00 AAA 13,772,655
(Washoe Medical Center, Inc. Project), Series 1994A,
6.000%, 6/01/19
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.7%
3,750 New Jersey Healthcare Facilities Financing Authority, Revenue 7/04 at 102.00 AAA 4,121,550
Bonds, Monmouth Medical Center Issue, Series C,
6.250%, 7/01/24 (Pre-refunded to 7/01/04)
15
Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued)
Portfolio of Investments April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.7%
$ 6,000 City of Farmington, New Mexico, Pollution Control Refunding 10/02 at 101.00 BB $ 5,809,680
Revenue Bonds (Southern California Edison Company Four
Corners Project), 1991 Series A, 7.200%, 4/01/21
3,850 New Mexico Mortgage Finance Authority, Multifamily Housing 7/02 at 101.00 AAA 3,894,121
Refunding Revenue Bonds (Tax-Exempt - Fannie Mae Collateralized),
1990 Series A, 7.625%, 1/01/24
5,750 City of Santa Fe, New Mexico, Revenue Bonds, Series 1994A, 6/04 at 100.00 AAA 6,197,983
6.300%, 6/01/24 (Pre-refunded to 6/01/04)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 13.0%
City of New York, New York, General Obligation Bonds, Fiscal
1991 Series A:
2,000 8.000%, 3/15/11 9/02 at 100.00 AAA 2,044,000
6,000 7.250%, 3/15/19 9/02 at 100.00 AAA 6,576,900
10,335 City of New York Municipal Water Finance Authority, New York, 6/05 at 101.00 AAA 11,502,855
Water and Sewer System Revenue Bonds, Fiscal 1996 Series A,
6.000%, 6/15/25 (Pre-refunded to 6/15/05)
11,760 New York State Dormitory Authority, Court Facilities Lease 5/10 at 101.00 AAA 12,412,915
Revenue Bonds, City of New York Issue, Series 1999,
5.750%, 5/15/30
4,800 New York State Dormitory Authority, FHA-Insured Mortgage 8/09 at 101.00 AAA 4,917,984
Revenue Bonds (New York Hospital Medical Center of Queens),
Series 1999, 5.600%, 2/15/39
7,000 New York State Energy Research and Development Authority, 7/05 at 102.00 A+ 7,302,680
Facilities Refunding Revenue Bonds (Consolidated Edison
Company of New York, Inc. Project), Series 1995A,
6.100%, 8/15/20
11,950 New York State Housing Finance Agency, Housing Project 5/06 at 102.00 AAA 12,612,747
Mortgage Revenue Bonds, 1996 Series A Refunding,
6.125%, 11/01/20
4,200 New York State Mortgage Agency, Homeowner Mortgage 10/09 at 100.00 AAA 4,284,672
Revenue Bonds, Series 82, 5.550%, 10/01/19 (Alternative
Minimum Tax)
12,000 New York State Medical Care Facilities Finance Agency, New 2/05 at 102.00 AAA 13,631,520
York Hospital FHA-Insured Mortgage Revenue Bonds, Series 1994A,
6.900%, 8/15/34 (Pre-refunded to 2/15/05)
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 3.7%
20,000 Mercer County, North Dakota, Pollution Control Refunding 1/05 at 102.00 AAA 21,206,000
Revenue Bonds (Basin Electric Power Cooperative - Antelope
Valley Unit 1 and Common Facilities), Second 1995 Series,
6.050%, 1/01/19
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.9%
5,000 Lorain County, Ohio, Health Facilities Revenue Bonds (Catholic 9/09 at 102.00 AAA 5,103,900
Healthcare Partners), Series 1999A, 5.500%, 9/01/29
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.6%
7,000 Allegheny County, Pennsylvania, Airport Revenue Refunding 1/08 at 101.00 AAA 7,060,200
Bonds (Pittsburgh International Airport), Series 1997A, 5.250%,
1/01/16 (Alternative Minimum Tax)
7,250 Lehigh County Industrial Development Authority, Pollution 8/05 at 102.00 AAA 7,777,873
Control Revenue Refunding Bonds (Pennsylvania Power and
Light Company Project), 1995 Series A, 6.150%, 8/01/29
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.9%
5,050 Rhode Island Port Authority and Economic Development 7/04 at 102.00 AAA 5,435,467
Corporation, Airport Revenue Bonds, 1994 Series A,
6.625%, 7/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.9%
5,000 South Carolina Public Service Authority, Revenue Bonds, 1/12 at 100.00 AAA 5,077,500
Series 2002B, 5.500%, 1/01/36
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.9%
5,170 Sullivan County Health, Educational and Housing Facilities 2/03 at 102.00 AAA 5,317,707
Board, Tennessee, Hospital Revenue Bonds (Holston Valley
Healthcare, Inc.), Series 1993, 5.750%, 2/15/13
16
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 23.6%
$ 8,000 Abilene Health Facilities Development Corporation, Texas, 9/05 at 102.00 AAA $ 8,552,880
Hospital Revenue Refunding and Improvement Bonds (Hendrick
Medical Center Project), Series 1995C, 6.150%, 9/01/25
5,275 City of Austin, Texas, Combined Utility System Revenue 11/07 at 100.00 AAA 5,237,442
Refunding Bonds, Series 1997, 5.125%, 11/15/20
Harris County Hospital District, Texas, Refunding Revenue
Bonds, Series 1990:
315 7.500%, 2/15/03 No Opt. Call AAA 328,885
405 7.500%, 2/15/03 No Opt. Call AAA 421,467
2,100 7.400%, 2/15/10 No Opt. Call AAA 2,419,389
2,900 7.400%, 2/15/10 No Opt. Call AAA 3,380,530
City of Houston, Texas, General Obligation Public Improvement
Bonds, Series 2001A:
10,000 5.000%, 3/01/22 3/11 at 100.00 AAA 9,735,500
10,000 5.000%, 3/01/23 3/11 at 100.00 AAA 9,691,000
4,685 City of Houston, Texas, Airport System Subordinate Lien 7/10 at 100.00 AAA 4,741,454
Revenue Bonds, Series 2000A, 5.500%,7/01/19 (Alternative
Minimum Tax)
17,000 City of Houston, Texas, Water and Sewer System Junior Lien No Opt. Call AAA 18,547,680
Revenue Refunding Bonds, Series 2002A, 5.750%, 12/01/32
19,200 Jefferson County Health Facilities Development Corporation, 8/11 at 100.00 AAA 19,072,512
Texas, FHA-Insured Mortgage Revenue Bonds (Baptist Hospital
of Southeast Texas), Series 2001, 5.400%, 8/15/31
6,000 Laredo Community College District, Texas, Limited Tax General 8/10 at 100.00 AAA 5,947,020
Obligation Bonds, Series 2001, 5.375%, 8/01/31
29,545 North Central Texas Health Facility Development Corporation, 8/12 at 101.00 AAA 28,811,989
Revenue Bonds (Children's Medical Center of Dallas), Series 2002,
5.250%, 8/15/32 (WI, settling 5/07/02)
17,715 Tarrant County Housing Finance Corporation, Texas, Multifamily 3/12 at 105.00 Aaa 19,206,249
Housing Revenue Bonds (GNMA Collateralized Mortgage Loan -
Bardin Green Apartments Project), Series 2001, 6.600%, 9/20/42
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.2%
6,000 Salt Lake City, Utah, Hospital Revenue Refunding Bonds (IHC 5/02 at 100.00 AAA 6,864,420
Hospitals, Inc.), Series 1988A, 8.000%, 5/15/07
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.6%
10,730 Chelan County Public Utility District No. 1, Washington, Chelan 7/11 at 101.00 AAA 10,864,018
Hydro Consolidated System Revenue Bonds, Series 2001C
Refunding, 5.650%, 7/01/32
4,740 City of Seattle Housing Authority, Washington, Low Income 9/11 at 102.00 AAA 4,823,234
Housing Assistance Revenue Bonds (GNMA Collateralized Mortgage
Loan - RHF/Esperanza Apartments Project), Series 2000A, 6.125%,
3/20/42 (Alternative Minimum Tax)
15,025 City of Seattle Housing Authority, Washington, Low Income 11/11 at 105.00 AAA 17,152,690
Housing Assistance Revenue Bonds (GNMA Collateralized Mortgage
Loan - Park Place Project), 2000 Series A, 7.000%, 5/20/42
5,000 City of Seattle, Washington, Municipal Light and Power 12/10 at 100.00 AAA 5,008,300
Revenue Bonds, Series 2000, 5.250%, 12/01/21
3,625 Municipality of Metropolitan Seattle, Washington, Sewer 1/03 at 102.00 AAA 3,635,839
Refunding Revenue Bonds, Series Z, 5.500%, 1/01/33
2,500 Washington Healthcare Facilities Authority, Revenue Bonds 12/09 at 101.00 AAA 2,530,725
(Providence Services), Series 1999, 5.375%, 12/01/19
11,750 Washington Public Power Supply System, Nuclear Project No.1 7/08 at 102.00 AAA 11,867,148
Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/17
17
Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued)
Portfolio of Investments April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 2.2%
$ 12,845 West Virginia Water Development Authority, Infrastructure 10/10 at 100.00 AAA $ 13,006,589
Revenue Bonds (West Virginia Infrastructure and Jobs
Development Council Program), 2000 Series A, 5.500%, 10/01/39
------------------------------------------------------------------------------------------------------------------------------------
$ 941,035 Total Investments (cost $850,279,720) - 154.1% 892,876,289
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.5%
$ 14,300 Port Authority of New York and New Jersey, Special Obligation VMIG-1 14,300,000
============= Bonds (Versatile Structure), Third Series, Variable Rate Demand
Bonds, 1.700%, 6/01/20+
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (1.7)% (9,618,413)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.9)% (318,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $579,557,876
====================================================================================================================
All of the bonds in the portfolio, excluding temporary
investments in short-term securities, are either covered by
Original Issue Insurance, Secondary Market Insurance or
Portfolio Insurance, or are backed by an escrow or trust
containing sufficient U.S. Government or U.S. Government
agency securities, any of which ensure the timely payment of
principal and interest.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that currently in
effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
18
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO)
Portfolio of
Investments April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 13.1%
$ 3,850 Alabama Housing Finance Authority, Multifamily Housing 7/05 at 103.00 Aaa $ 4,059,479
Revenue Refunding Bonds (GNMA Collateralized - Royal Hills),
1995 Series F, 6.500%, 7/20/30
11,000 City of Birmingham Special Care Facilities Financing Authority, 5/05 at 102.00 AAA 11,376,970
Alabama, Baptist Medical Centers Revenue Bonds (Baptist Health
System, Inc), Series 1995-B, 5.875%, 11/15/20
City of Birmingham Special Care Facilities Financing Authority,
Alabama, Baptist Medical Centers Revenue Bonds (Baptist Health
System, Inc), Series 1996-A:
7,465 5.875%, 11/15/19 11/06 at 102.00 AAA 7,793,759
1,750 5.875%, 11/15/26 11/06 at 102.00 AAA 1,808,380
11,175 City of Hoover Board of Education, Alabama, Capital Outlay 2/11 at 100.00 AAA 11,271,999
Tax Anticipation Warrants, Series 2001, 5.250%, 2/15/22
36,020 Jefferson County, Alabama, Sewer Revenue Refunding 2/07 at 100.00 AAA 36,177,047
Warrants, Series 1997-A, 5.375%, 2/01/27
Jefferson County, Alabama, Sewer Revenue Capital Improvement
Warrants, Series 1999-A:
20,605 5.000%, 2/01/33 2/09 at 101.00 AAA 19,565,684
12,000 5.375%, 2/01/36 2/09 at 101.00 AAA 12,001,440
29,860 5.750%, 2/01/38 2/09 at 101.00 AAA 31,106,058
24,000 Jefferson County, Alabama, Sewer Revenue Capitol 2/11 at 101.00 AAA 22,612,320
Improvement Warrants, Series 2001A, 5.000%, 2/01/41
4,250 Shelby County Board of Education, Alabama, Capital Outlay 2/05 at 102.00 AAA 4,458,165
Refunding School Warrants, Series 1995, 5.875%, 2/01/17
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 6.1%
Alaska Housing Finance Corporation, General Mortgage Revenue
Bonds, 1999 Series A:
24,110 6.050%, 6/01/35 6/09 at 100.00 AAA 24,928,052
11,500 6.050%, 6/01/39 6/09 at 100.00 AAA 11,847,990
11,460 Alaska Housing Finance Corporation, Governmental Purpose 12/05 at 102.00 AAA 11,622,388
Bonds, 1995 Series A, 5.875%, 12/01/30
19,430 Alaska Housing Finance Corporation, Collateralized Bonds 12/09 at 100.00 AAA 20,154,545
(Veterans Mortgage Program A-2), 1999 First Series, 6.250%,
6/01/39 (Alternative Minimum Tax)
3,840 Alaska Housing Finance Corporation, Collateralized Bonds 12/09 at 100.00 AAA 3,998,438
(Veterans Mortgage Program A-1), 1999 First Series, 6.150%,
6/01/39 (Alternative Minimum Tax)
3,000 Alaska Student Loan Corporation, Student Loan Revenue 7/08 at 100.00 AAA 3,053,520
Bonds, 1998 Series A, 5.250%, 7/01/14 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.7%
8,345 Pima County Industrial Development Authority, Arizona, 7/02 at 103.00 AAA 8,753,488
Industrial Development Lease Obligation Refunding Revenue
Bonds (Irvington Project), 1988 Series A, 7.250%, 7/15/10
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 24.4%
10,000 Anaheim Public Financing Authority, California, Subordinate No Opt. Call AAA 1,406,500
Lease Revenue Bonds (Anaheim Public Improvements Project),
1997 Series C, 0.000%, 9/01/36
6,135 California Housing Finance Agency, Housing Revenue Bonds 8/04 at 102.00 AAA 6,354,878
(Insured), 1994 Series C, 6.250%, 8/01/25
19,385 California Housing Finance Agency, Home Mortgage Revenue 8/11 at 28.60 AAA 3,120,016
Bonds, 2001 Series M, 0.000%, 8/01/32 (Alternative Minimum Tax)
California Rural Home Mortgage Finance Authority, Single Family
Mortgage Revenue Bonds (Mortgage-Backed Securities Program),
1996 Series A:
1,560 7.550%, 11/01/26 (Alternative Minimum Tax) No Opt. Call AAA 1,688,419
1,265 7.750%, 5/01/27 (Alternative Minimum Tax) No Opt. Call AAA 1,376,586
4,500 State of California, General Obligation Bonds, 5.000%, 10/01/19 10/08 at 101.00 AAA 4,512,240
19
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of Investments April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 10,000 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 AAA $ 10,062,000
Revenue Bonds, Series 2002A, 5.300%, 12/01/21
California Housing Finance Agency, Home Mortgage Revenue
Bonds, 2000 Series Y:
22,365 0.000%, 8/01/20 (Alternative Minimum Tax) 11/10 at 55.40 AAA 7,544,833
37,185 0.000%, 8/01/31 (Alternative Minimum Tax) 11/10 at 27.89 AAA 6,221,051
3,100 Campbell Union School District, Santa Clara County, California, 8/04 at 102.00 AAA 3,441,527
1994 General Obligation Bonds, Series A, 6.250%, 8/01/19
(Pre-refunded to 8/01/04)
8,200 Castaic Lake Water Agency, California, Refunding Revenue 8/04 at 102.00 AAA 8,946,610
Certificates of Participation (Water System Improvement Projects),
Series 1994A, 6.300%, 8/01/20
20,000 Cucamonga County Water District, California, Certificates of 9/11 at 101.00 AAA 19,678,200
Participation (2000 Water Shares Purchase), 5.125%, 9/01/35
5,500 Fallbrook Union High School District, San Diego County, 9/04 at 102.00 AAA 6,123,315
California, 1994 General Obligation Bonds, Series A, 6.250%,
9/01/19 (Pre-refunded to 9/01/04)
5,000 Long Beach Bond Finance Authority, California, Lease Revenue 11/11 at 101.00 AAA 5,002,000
Refunding Bonds (The Aquarium of the South Pacific),
5.250%, 11/01/30
9,000 Orange County, California, Refunding Recovery Bonds, 1995 6/05 at 102.00 AAA 9,681,480
Series A, 5.750%, 6/01/15
12,500 Orange County, California, 1996 Recovery Certificates of 7/06 at 102.00 AAA 13,833,750
Participation, Series A, 6.000%, 7/01/26
Poway Redevelopment Agency, California, Tax Allocation Bonds
(Paguay Redevelopment Project), Series 2001:
15,000 5.200%, 6/15/30 12/11 at 101.00 AAA 14,983,650
5,000 5.125%, 6/15/33 12/11 at 101.00 AAA 4,945,950
19,300 Sacramento Power Authority, California, Cogeneration Project 7/06 at 102.00 AAA 21,171,328
Revenue Bonds, 1995 Series, 5.875%, 7/01/15
6,500 City of Salinas, California, Housing Facility Refunding Revenue 7/04 at 102.00 AAA 6,771,765
Bonds (GNMA Collateralized - Villa Serra Project),
Series 1994A, 6.600%, 7/20/30
10,000 City and County of San Francisco Airports Commission, 5/06 at 101.00 AAA 10,093,400
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 13B, 5.500%, 5/01/26 (Alternative
Minimum Tax)
11,000 City and County of San Francisco Airports Commission, 1/08 at 102.00 AAA 10,523,700
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 15A, 5.000%, 5/01/28 (Alternative
Minimum Tax)
18,710 City and County of San Francisco Airports Commission, 5/11 at 100.00 AAA 18,621,502
California, San Francisco International Airport, Second Series
Revenue Refunding Bonds, Issue 27A, 5.250%, 5/01/26
(Alternative Minimum Tax)
15,000 San Francisco Bay Area Rapid Transit District, California, 7/11 at 100.00 AAA 14,787,000
Sales Tax Revenue Bonds, Series 2001, 5.125%, 7/01/36
66,685 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 24,370,700
County, California, Senior Lien Toll Road Revenue Bonds,
0.000%, 1/01/21
San Joaquin Hills Transportation Corridor Agency, Orange County,
California, Toll Road Refunding Revenue Bonds, Series 1997A:
31,615 5.250%, 1/15/30 1/07 at 102.00 AAA 31,543,550
21,500 0.000%, 1/15/32 No Opt. Call AAA 4,007,815
12,525 San Diego Redevelopment Agency, California, Merged Area 8/10 at 101.00 AAA 12,537,776
Redevelopment Project Tax Allocation Bonds, Series 2002,
5.000%, 8/01/20
11,000 Santa Ana Financing Authority, California, Police Administration No Opt. Call AAA 12,788,270
and Housing Facility Lease Revenue Bonds, Series 1994A,
6.250%, 7/01/24
5,500 Santa Clara County Financing Authority, California, Lease 11/04 at 102.00 AAA 6,234,030
Revenue Bonds (VMC Facility Replacement Project), 1994 Series A,
6.750%, 11/15/20 (Pre-refunded to 11/15/04)
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.9%
$ 10,545 City and County of Denver, Colorado, Airport Revenue Bonds, 11/06 at 101.00 AAA $ 10,715,302
Series 1996D, 5.500%, 11/15/25
35,995 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 10,873,370
Bonds, Series 1997B, 0.000%, 9/01/23
30,800 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 102.00 AAA 32,524,800
Bonds, Series 2000A, 5.750%, 9/01/35
11,800 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 74.80 AAA 5,809,966
Bonds, Series 2000B, 0.000%, 9/01/15
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.2%
2,500 Connecticut Health and Educational Facilities Authority, 7/04 at 101.00 AAA 2,765,600
Revenue Bonds, Choate Rosemary Hall Issue, Series A, 7.000%,
7/01/25 (Pre-refunded to 7/01/04)
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.6%
6,000 District of Columbia, Hospital Improvement and Refunding 7/02 at 102.00 AAA 6,163,620
Revenue Bonds, Children's Hospital Issue, Series 1992A,
6.250%, 7/15/19
4,800 District of Columbia Housing Finance Agency, Collateralized 6/02 at 102.00 AAA 4,892,208
Single Family Mortgage Revenue Bonds, Series 1990B,
7.100%, 12/01/24 (Alternative Minimum Tax)
33,450 District of Columbia, University Revenue Bonds, Georgetown 4/11 at 20.24 AAA 3,907,629
University Issue, Series 2001A, 0.000%, 4/01/38
4,840 Metropolitan Washington Airports Authority, District of 10/11 at 101.00 AAA 4,953,498
Columbia, Airport System Revenue Bonds, Series 2001A,
5.500%, 10/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 0.4%
349 Dade County Housing Finance Authority, Florida, Single Family 6/02 at 102.00 AAA 354,891
Mortgage Revenue Refunding Bonds, 1991 Series D,
6.950%, 12/15/12
755 Escambia County Housing Finance Authority, Florida, Single 4/05 at 102.00 AAA 790,946
Family Mortgage Revenue Bonds (Multi-County Program),
Series 1995, 6.950%, 10/01/27 (Alternative Minimum Tax)
3,520 Florida Housing Finance Agency, Homeownership Revenue No Opt. Call AAA 3,967,181
Refunding Bonds, 1987 Series G1, 8.595%, 11/01/17
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.5%
13,900 City of Atlanta, Georgia, Water and Wastewater Revenue 5/12 at 100.00 AAA 13,239,055
Bonds, Series 2001A, 5.000%, 11/01/39
5,000 Glynn-Brunswick Memorial Hospital Authority, Revenue 8/06 at 102.00 AAA 5,225,600
Anticipation Certificates (Southeast Georgia Health Systems
Project), Series 1996, 5.250%, 8/01/13
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 2.1%
24,250 Hawaii Department of Budget and Finance, Special Purpose 5/06 at 101.00 AAA 26,016,613
Revenue Bonds (Hawaiian Electric Company, Inc. and
Subsidiaries Projects), Series 1996A, 6.200%, 5/01/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.7%
2,375 Idaho Housing Agency, Single Family Mortgage Bonds, 1994 No Opt. Call Aa1 2,639,456
Series B-1, 6.750%, 7/01/22
2,250 Idaho Housing Agency, Single Family Mortgage Bonds, 1994 No Opt. Call Aa1 2,482,763
Series B-2, 6.900%, 7/01/26 (Alternative Minimum Tax)
3,035 Idaho Housing Agency, Single Family Mortgage Bonds, 1995 1/05 at 102.00 Aaa 3,143,046
Series B, 6.600%, 7/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 12.8%
4,055 Central Lake County Joint Action Water Agency, Lake County, 2/03 at 102.00 Aa2 4,167,080
Illinois, General Obligation Water Refunding Bonds,
Series 1992, 6.000%, 2/01/19
10,000 City of Chicago, Illinois, General Obligation Bonds (Central 7/02 at 101.50 AAA 10,238,600
Public Library Project), Series 1988C, 6.850%, 1/01/17
(Pre-refunded to 7/01/02)
18,000 City of Chicago, Illinois, Chicago Midway Airport, Revenue 1/09 at 101.00 AAA 16,943,940
Bonds, Series 1998A, 5.125%, 1/01/31 (Alternative Minimum Tax)
12,500 City of Chicago, Illinois, Chicago-O'Hare International Airport, 1/04 at 102.00 AAA 12,398,625
General Airport Second Lien Revenue Refunding Bonds,
1993 Series C, 5.000%, 1/01/18
21
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of Investments April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
City of Chicago, Illinois, Chicago-O'Hare International Airport,
Second Lien Passenger Facility Charge Revenue Bonds, Series
2001E Refunding:
$ 4,615 5.500%, 1/01/17 (Alternative Minimum Tax) 1/11 at 101.00 AAA $ 4,695,993
4,870 5.500%, 1/01/18 (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,933,359
11,000 City of Chicago, Illinois, Senior Lien Water Revenue Bonds, 11/11 at 100.00 AAA 10,528,320
Series 2001, 5.000%, 11/01/26
Board of Governors of State Colleges and Universities, Eastern
Illinois University, Auxiliary Facilities System Revenue Bonds,
Series 1989:
12,355 0.000%, 10/01/09 10/04 at 74.08 AAA 8,243,380
16,470 0.000%, 4/01/16 (Pre-refunded to 10/01/04) at 47.07 AAA 7,260,800
10,000 Illinois Development Finance Authority, Revenue Bonds 5/08 at 101.00 AAA 10,132,600
(Provena Health), Series 1998A, 5.500%, 5/15/21
2,095 Illinois Educational Facilities Authority, Revenue Bonds (Robert 12/07 at 100.00 Aaa 2,160,783
Morris College), Series 2000, 5.800%, 6/01/30
2,180 Illinois Educational Facilities Authority, Revenue Bonds (DePaul 10/10 at 101.00 AAA 2,255,188
University), Series 2000, 5.500%, 10/01/19
20,000 Illinois Health Facilities Authority, Brokaw-Mennonite 8/02 at 102.00 AAA 20,594,200
Association Revenue Refunding Bonds (BroMenn Healthcare),
Series 1992, 6.250%, 8/15/18
7,000 Illinois Health Facilities Authority, Revenue Bonds (Hospital 6/08 at 101.00 Aaa 6,877,500
Sisters Services, Inc. Obligated Group), Series 1998A,
5.000%, 6/01/18
4,500 Illinois Health Facilities Authority, Revenue Bonds (Alexian 1/09 at 101.00 AAA 4,397,715
Brothers Health System), Series 1999, 5.000%, 1/01/19
22,410 State of Illinois, General Obligation Bonds (Illinois FIRST 2/12 at 100.00 AAA 21,970,764
Program), Series 2002, 5.125%, 2/01/27
4,560 Macon County, Illinois, Revenue Bonds (Millikin University), 10/05 at 100.00 AAA 5,059,229
Series 1995, 6.250%, 10/01/16 (Pre-refunded to 10/01/05)
5,000 Cook, DuPage, Kane, Lake, McHenry and Will Counties Regional 6/04 at 102.00 AAA 5,530,100
Transportation Authority, Illinois, General Obligation Bonds,
Series 1994D, 6.750%, 6/01/25 (Pre-refunded to 6/01/04)
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.0%
10,500 City of Fort Wayne Hospital Authority, Indiana, Revenue Bonds 11/02 at 102.00 A+*** 10,974,495
(Parkview Memorial Hospital, Inc. Project), Series 1992,
6.400%, 11/15/22 (Pre-refunded to 11/15/02)
20,000 Indianapolis Local Public Improvement Bond Bank, Indiana, No Opt. Call AAA 4,651,000
General Obligation Bonds, Series 1999E, 0.000%, 2/01/28
12,250 City of Lawrenceburg, Indiana, Pollution Control Revenue 10/02 at 102.00 AAA 12,543,143
Refunding Bonds (Indiana Michigan Power Company Project),
Series D, 7.000%, 4/01/15
9,545 New Prairie School Building Corporation, LaPorte and St. 7/04 at 102.00 AAA 10,692,691
Joseph Counties, Indiana, First Mortgage Bonds, Series 1994,
7.200%, 7/15/21 (Pre-refunded to 7/15/04)
10,000 The Trustees of Purdue University, Indiana, Purdue University 1/12 at 100.00 AAA 9,948,000
Student Fee Bonds, Series O, 5.000%, 7/01/19
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.4%
5,000 University of Kansas Hospital Authority, Health Facilities 9/09 at 100.00 AAA 5,121,600
Revenue Bonds (Kansas University Health System),
Series 1999A, 5.650%, 9/01/29
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 2.2%
Louisville and Jefferson County Metropolitan Sewer District,
Kentucky, Sewer and Drainage System Revenue Bonds, 2001 Series
A:
12,980 5.500%, 5/15/34 11/11 at 101.00 AAA 13,273,737
14,125 5.000%, 5/15/36 11/11 at 101.00 AAA 13,453,498
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.1%
5,000 Parish of De Soto, Louisiana, Pollution Control Revenue 9/09 at 102.00 AAA 5,305,600
Refunding Bonds (Cleco Utility Group Inc. Project), Series 1999,
5.875%, 9/01/29
5,340 City of New Orleans, Louisiana, General Obligation Bonds, 9/02 at 100.00 AAA 5,437,295
Series 1992, 7.000%, 9/01/19 (Pre-refunded to 9/01/02)
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA (continued)
$ 8,050 Orleans Levee District (A Political Subdivision of the State of 12/05 at 103.00 AAA $ 8,647,310
Louisiana), Public Improvement Bonds, Series 1986,
5.950%, 11/01/15
3,000 Parish of St. Charles, Louisiana, Pollution Control Revenue 6/02 at 101.00 AAA 3,087,150
Bonds (Louisiana Power and Light Company Project),
Series 1991, 7.500%, 6/01/21 (Alternative Minimum Tax)
3,500 Parish of Tangipahoa Hospital Service District No. 1, 2/04 at 102.00 AAA 3,718,925
Louisiana, Hospital Revenue Bonds, Series 1994, 6.250%, 2/01/24
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 6.8%
22,500 Massachusetts Development Finance Authority, Revenue 1/12 at 101.00 AAA 22,457,925
Bonds (WGBH Educational Foundation), Series 2002A,
5.375%, 1/01/42
10,500 Massachusetts Health and Educational Facilities Authority, 7/02 at 102.00 AAA 10,773,735
Revenue Bonds, New England Medical Center Hospitals Issue,
Series F, 6.625%, 7/01/25
8,400 Massachusetts Health and Educational Facilities Authority, 10/05 at 102.00 AAA 8,962,632
Revenue Bonds, Berkshire Health Systems Issue, Series D,
6.000%, 10/01/13
2,960 Massachusetts Health and Educational Facilities Authority, 7/02 at 102.00 AAA 3,036,427
Revenue Bonds, South Shore Hospital Issue, Series D,
6.500%, 7/01/22
4,865 Massachusetts Housing Finance Agency, Housing Revenue 12/05 at 102.00 AAA 5,097,936
Refunding Bonds, 1995 Series A, 6.100%, 12/01/16
35,815 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 33,551,134
System Revenue Bonds, 1997 Senior Series A, 5.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 8.5%
6,000 City of Detroit, Michigan, General Obligation Bonds, 2001 10/11 at 100.00 AAA 6,201,300
Series A-1, 5.375%, 4/01/18
5,490 City of Detroit School District, Wayne County, Michigan, School No Opt. Call AAA 6,205,731
Building and Site Improvement Bonds (Unlimited Tax -
General Obligation), Series 2001A, 6.000%, 5/01/29
City of Detroit, Michigan, Sewage Disposal System Revenue
Bonds, Series 1999-A:
15,825 5.750%, 7/01/26 (Pre-refunded to 1/01/10) 1/10 at 101.00 AAA 17,782,236
20,000 5.875%, 7/01/27 (Pre-refunded to 1/01/10) 1/10 at 101.00 AAA 22,637,600
1,500 City of Detroit, Michigan, Water Supply System Revenue and 7/04 at 102.00 AAA 1,456,980
Revenue Refunding Bonds, Series 1993, 5.000%, 7/01/23
13,700 City of Detroit, Michigan, Water Supply System Revenue 7/07 at 101.00 AAA 13,136,930
Senior Lien Bonds, Series 1997-A, 5.000%, 7/01/27
8,000 Gaylord Community Schools, Otsego and Antrim Counties, 5/07 at 37.75 AAA 2,504,240
Michigan, 1992 School Building, Site and Refunding Bonds,
0.000%, 5/01/21 (Pre-refunded to 5/01/07)
27,000 Okemos Public School, Ingham County, Michigan, 1991 5/06 at 34.54 AAA 8,131,050
School Building and Site Bonds, Series I, 0.000%, 5/01/21
(Pre-refunded to 5/01/06)
Charter County of Wayne, Michigan, Detroit Metropolitan Wayne
County Airport, Airport Hotel Revenue Bonds (Limited Tax -
General Obligation), Series 2001A:
10,000 5.250%, 12/01/25 12/11 at 101.00 AAA 9,992,800
10,000 5.000%, 12/01/30 12/11 at 101.00 AAA 9,525,100
6,850 Charter County of Wayne, Michigan, Detroit Metropolitan 12/08 at 101.00 AAA 7,020,017
Wayne County Airport, Airport Revenue Bonds, Series 1998A,
5.375%, 12/01/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.8%
4,010 Minnesota Housing Finance Agency, Single Family Mortgage 1/04 at 102.00 AA+ 4,151,072
Bonds, 1994 Series M, 6.700%, 7/01/26 (Alternative Minimum Tax)
4,390 Minnesota Housing Finance Agency, Single Family Mortgage 7/02 at 102.00 AA+ 4,484,034
Bonds, 1992 Series E, 6.850%, 1/01/24 (Alternative Minimum Tax)
13,020 Saint Paul Housing and Redevelopment Authority, Minnesota, 12/11 at 102.00 Aaa 12,958,806
Multifamily Housing Revenue Bonds (GNMA Collateralized
Mortgage Loan - Marian Center-GEAC Project), Series 2001A,
3.870%, 6/20/43
23
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of Investments April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.2%
$ 2,580 Missouri Housing Development Commission, Single Family 7/02 at 102.00 AAA $ 2,634,180
Mortgage Revenue Bonds (GNMA Mortgage-Backed
Securities Program), 1991 Series C, 6.900%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 2.2%
26,000 City of Forsyth, Rosebud County, Montana, Pollution Control 9/02 at 102.00 AAA 26,606,060
Revenue Refunding Bonds (Puget Sound Power and Light
Company Colstrip Project), Series 1992, 6.800%, 3/01/22
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 6.3%
Director of the State of Nevada, Department of Business and
Industry, Revenue Bonds (Las Vegas Monorail Project), 1st Tier
Series 2000:
5,445 0.000%, 1/01/26 No Opt. Call AAA 1,432,035
3,000 0.000%, 1/01/27 No Opt. Call AAA 745,890
5,000 0.000%, 1/01/28 No Opt. Call AAA 1,173,500
15,000 5.625%, 1/01/34 1/10 at 102.00 AAA 15,358,200
13,000 5.375%, 1/01/40 1/10 at 100.00 AAA 12,874,420
3,430 Nevada Housing Division, Single Family Program Bonds, 1994 4/04 at 102.00 Aa2 3,484,949
Issue B-1 Senior Bonds, 6.700%, 10/01/17
2,650 Nevada Housing Division, Single Family Mortgage Bonds, 4/04 at 102.00 Aa2 2,731,938
1994 Series B-2 Senior Bonds, 6.950%, 10/01/26 (Alternative
Minimum Tax)
40,285 Reno, Nevada, Capital Improvement Revenue Bonds, Series 6/12 at 100.00 AAA 40,444,931
2002, 5.375%, 6/01/32 (WI, settling 5/01/02)
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.4%
4,950 New Hampshire Higher Educational and Health Facilities 1/03 at 102.00 AAA 5,091,917
Authority, Hospital Revenue Bonds, Lakes Region Hospital
Association Issue, Series 1993, 5.750%, 1/01/11
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 6.9%
8,685 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 8,886,926
General Revenue Bonds, Series 1998A, 5.300%, 12/01/19
10,000 Metropolitan Transportation Authority, New York, Revenue 11/11 at 100.00 AAA 9,619,300
Bonds (Dedicated Tax Fund), Series 2001A, 5.000%, 11/15/31
8,265 City of New York, New York, General Obligation Bonds, 8/02 at 101.50 AAA 8,487,659
Fiscal 1992 Series C, 6.250%, 8/01/10 (Pre-refunded to 8/01/02)
10,000 City of New York Municipal Water Finance Authority, New 6/06 at 101.00 AAA 10,837,100
York, Water and Sewer System Revenue Bonds, Fiscal 1996
Series B, 5.750%, 6/15/26
15,000 City of New York Municipal Water Finance Authority, New 6/06 at 101.00 AAA 15,125,850
York, Water and Sewer System Revenue Bonds, Fiscal 1997
Series A, 5.375%, 6/15/26
New York State Dormitory Authority, City University System
Consolidated Third General Resolution Revenue Bonds, 1994 Series
2:
3,000 6.250%, 7/01/19 (Pre-refunded to 7/01/04) 7/04 at 100.00 AAA 3,254,910
6,400 6.750%, 7/01/24 (Pre-refunded to 7/01/04) 7/04 at 102.00 AAA 7,133,248
5,000 New York State Urban Development Corporation, Correctional 1/07 at 102.00 AAA 5,186,000
Capital Facilities Revenue Bonds, Series 7, 5.700%, 1/01/27
15,600 Port Authority of New York and New Jersey, Consolidated 1/05 at 101.00 AAA 16,525,392
Bonds, Ninety-Seventh Series, 6.650%, 1/15/23 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.9%
9,000 Lucas County, Ohio, Hospital Improvement Revenue Bonds 8/02 at 102.00 AAA 9,302,310
(St. Vincent Medical Center), Series 1992, 6.625%, 8/15/22
20,100 Lucas County, Ohio, Hospital Revenue Bonds (Paramedic 11/09 at 101.00 AAA 20,160,501
Healthcare Obligated Group), Series 1999, 5.375%, 11/15/39
6,540 Ohio Housing Finance Agency, Residential Mortgage Revenue 3/05 at 102.00 Aaa 6,973,210
Bonds (GNMA Mortgage-Backed Securities Program), 1995 Series A-2,
6.625%, 3/01/26 (Alternative Minimum Tax)
Ohio Air Quality Development Authority, Air Quality Development
Revenue Refunding Bonds (JMG Funding Limited Partnership
Project), Series 1994:
13,750 6.375%, 1/01/29 (Alternative Minimum Tax) 10/04 at 102.00 AAA 14,906,100
8,000 6.375%, 4/01/29 (Alternative Minimum Tax) 10/04 at 102.00 AAA 8,672,640
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.1%
$ 17,170 Oklahoma Housing Finance Agency, GNMA Collateralized No Opt. Call AAA $ 19,161,205
Single Family Mortgage Revenue Bonds, Series 1987A,
7.997%, 8/01/18 (Alternative Minimum Tax)
5,245 Oklahoma Industries Authority, Revenue Bonds (Oklahoma 2/11 at 100.00 Aaa 5,253,654
Medical Research Foundation Project), Series 2001,
5.250%, 2/01/21
935 Tulsa County Home Finance Authority, Oklahoma, GNMA 6/02 at 101.50 AAA 950,839
Collateralized Mortgage Revenue Bonds, Series 1991C,
7.100%, 6/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.3%
3,820 Oregon Housing and Community Services Department, 7/05 at 102.00 Aa2 3,976,811
Mortgage Revenue Bonds (Single Family Mortgage Program),
1995 Series A, 6.450%, 7/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.8%
7,120 Lehigh County General Purpose Authority, Pennsylvania, 7/04 at 102.00 AAA 7,820,608
Hospital Revenue Bonds (Lehigh Valley Hospital, Inc.),
Series 1994A, 6.250%, 7/01/22 (Pre-refunded to 7/01/04)
8,950 Montgomery County Industrial Development Authority, 6/02 at 102.00 AAA 9,161,578
Pennsylvania, Pollution Control Revenue Refunding Bonds (Philadelphia
Electric Company Project), 1992 Series A, 6.625%, 6/01/22
5,250 City of Philadelphia, Pennsylvania, Water and Wastewater 11/12 at 100.00 AAA 5,260,500
Revenue Bonds, Series 2001A, 5.250%, 11/01/24
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.0%
2,195 Providence Housing Development Corporation, Rhode Island, 7/04 at 102.00 AAA 2,293,556
Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage Loan -
Barbara Jordan Apartments Project), Series 1994A, 6.750%, 7/01/25
20,475 Rhode Island Depositors Economic Protection Corporation, 2/11 at 100.00 AAA 22,198,586
Special Obligation Refunding Bonds, 1992 Series B,
5.250%, 8/01/21 (Pre-refunded to 2/01/11)
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.8%
Piedmont Municipal Power Agency, South Carolina, Electric
Revenue Bonds, 1988 Refunding Series:
9,190 0.000%, 1/01/13 (Pre-refunded to 1/01/10) 1/10 at 79.60 AAA 5,231,499
12,810 0.000%, 1/01/13 No Opt. Call AAA 7,650,516
17,300 South Carolina Jobs and Economic Development Authority, 8/03 at 102.00 AAA 17,378,369
Hospital Revenue Refunding and Improvement Bonds
(South Carolina Baptist Hospital), Series 1993D (Linked
Shorts and Longs), 5.550%, 8/01/21
South Carolina Jobs and Economic Development Authority,
Hospital Facilities Revenue Bonds (Oconee Memorial Hospital,
Inc.), Series 1995:
3,000 6.150%, 3/01/15 3/05 at 102.00 AAA 3,192,030
600 6.150%, 3/01/25 3/05 at 102.00 AAA 637,728
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.5%
6,455 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/11 at 100.00 AAA 6,588,038
Revenue Bonds, Series 2001A, 5.500%, 3/01/18 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 17.2%
22,650 Brazos River Authority, Texas, Revenue Refunding Bonds 5/08 at 102.00 AAA 22,599,038
(Houston Industries Incorporated Project), Series 1998C,
5.125%, 5/01/19 (Optional put 5/01/08)
9,500 Coastal Bend Health Facilities Development Corporation, Texas, 11/02 at 102.00 AAA 9,908,310
Incarnate Word Health Services Revenue Bonds, Series 1993-A,
6.000%, 11/15/22 (Pre-refunded to 11/15/02)
11,460 Dallas County Utility and Reclamation District, Texas, 2/05 at 100.00 AAA 11,878,863
Unlimited Tax Refunding Bonds, Series 1999B, 5.875%, 2/15/29
25,000 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 AAA 23,984,000
Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40
Harris County, Texas, Toll Road Senior Lien Revenue Bonds, Series 1989:
9,000 0.000%, 8/15/18 (Pre-refunded to 8/15/09) 8/09 at 53.84 AAA 3,552,930
39,000 0.000%, 8/15/19 (Pre-refunded to 8/15/09) 8/09 at 50.26 AAA 14,372,280
7,280 0.000%, 8/15/20 (Pre-refunded to 8/15/09) 8/09 at 46.91 AAA 2,508,033
5,085 0.000%, 8/15/21 (Pre-refunded to 8/15/09) 8/09 at 43.80 AAA 1,632,997
6,570 City of Houston, Texas, General Obligation Public Improvement 3/11 at 100.00 AAA 6,727,286
Bonds, Series 2001A, 5.375%, 3/01/19
25
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of Investments April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 4,170 City of Houston, Texas, Airport System Subordinate Lien 7/10 at 100.00 AAA $ 4,198,273
Revenue Bonds, Series 2000B, 5.500%, 7/01/30
8,225 City of Houston, Texas, Airport System Subordinate Lien 7/07 at 100.00 AAA 8,052,357
Revenue Bonds, Series 1997 Refunding, 5.125%, 7/01/22
18,500 City of Houston, Texas, Hotel Occupancy Tax and Special 9/11 at 100.00 AAA 17,878,215
Revenue Bonds (Convention Project), Series 2001B,
5.250%, 9/01/33
12,826 Houston Housing Finance Corporation, Texas, Multifamily 9/11 at 105.00 Aaa 13,768,198
Housing Revenue Bonds (RRG Apartments Project -
GNMA Collateralized Mortgage), Series 2001, 6.350%, 3/20/42
23,865 Jefferson County Health Facilities Development Corporation, 8/11 at 100.00 AAA 23,885,285
Texas, FHA-Insured Mortgage Revenue Bonds (Baptist Hospital of
Southeast Texas), Series 2001, 5.500%, 8/15/41
8,205 Lower Colorado River Authority, Texas, Refunding and 5/11 at 100.00 AAA 8,022,521
Improvement Revenue Bonds, Series 2001A, 5.000%, 5/15/21
Port of Houston Authority of Harris County, Texas, Unlimited Tax
General Obligation Port Improvement Bonds, Series 2001B:
3,205 5.500%, 10/01/18 (Alternative Minimum Tax) 10/11 at 100.00 AAA 3,262,594
3,375 5.500%, 10/01/19 (Alternative Minimum Tax) 10/11 at 100.00 AAA 3,425,625
7,205 City of San Antonio, Texas, Airport System Improvement 7/11 at 101.00 AAA 7,374,534
Revenue Bonds, Series 2001, 5.375%, 7/01/15 (Alternative
Minimum Tax)
Tarrant County Health Facilities Development Corporation, Texas,
Health Resources System Revenue Bonds, Series 1997A:
2,900 5.250%, 2/15/22 2/08 at 102.00 AAA 2,794,353
6,500 5.000%, 2/15/26 2/08 at 101.00 AAA 5,986,955
13,875 Texas Department of Housing and Community Affairs, Single 9/06 at 102.00 AAA 14,319,416
Family Mortgage Revenue Bonds, 1996 Series D,
6.250%, 9/01/28 (Alternative Minimum Tax)
1,840 Ysleta Independent School District, Texas, Lease Revenue 11/09 at 100.00 AAA 1,839,945
Refunding Bonds (Public Facility Corporation), Series 2001,
5.375%, 11/15/24
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.6%
5,800 Utah Housing Finance Agency, Multifamily Housing Refunding 7/02 at 102.00 AA 5,922,844
Bonds (FHA-Insured Mortgage Loans), 1992 Issue A,
7.400%, 7/01/24
910 Utah Housing Finance Agency, Single Family Mortgage Bonds 7/04 at 102.00 Aaa 932,732
(Federally Insured or Guaranteed Mortgage Loans), 1994 Issue D,
6.750%, 1/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.8%
10,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 9,999,200
Mortgage Bonds, 2001 Series H, Subseries H-1, 5.375%, 7/01/36
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 4.7%
34,635 King County, Washington, Sewer Revenue Bonds, Series 2001, 1/12 at 100.00 AAA 32,647,644
5.000%, 1/01/31
3,195 Kitsap County, Washington, Limited Tax General Obligation 7/10 at 100.00 AAA 3,248,324
Bonds, Series 2000, 5.500%, 7/01/25
4,250 Public Utility District No. 1, Snohomish County, Washington, 7/02 at 102.00 AAA 4,870,754
Generation System Revenue Bonds, Series 1989, 6.650%, 1/01/16
3,820 Washington Public Power Supply System, Nuclear Project No. 1 7/02 at 102.00 AAA 3,920,503
Refunding Revenue Bonds, Series 1992A, 6.250%, 7/01/17
4,345 Washington Public Power Supply System, Nuclear Project No. 1 7/07 at 102.00 AAA 4,368,245
Refunding Revenue Bonds, Series 1997A, 5.125%, 7/01/17
8,500 Washington Public Power Supply System, Nuclear Project No. 3 7/03 at 102.00 AAA 8,668,809
Refunding Revenue Bonds, Series 1993B, 5.600%, 7/01/17
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.9%
$ 10,000 Harrison County Commission, West Virginia, Solid Waste 5/03 at 102.00 AAA $ 10,539,799
Disposal Revenue Bonds (West Penn Power Company Harrison
Station Project), Series B, 6.300%, 5/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.4%
8,270 Wisconsin Housing and Economic Development Authority, 7/02 at 102.00 AAA 8,447,060
Housing Revenue Bonds, 1992 Series A, 6.850%, 11/01/12
15,000 Wisconsin Health and Educational Facilities Authority, 2/07 at 102.00 AAA 15,382,949
Revenue Bonds (Marshfield Clinic Project), Series 1997,
5.750%, 2/15/27
18,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/07 at 102.00 AAA 18,210,419
Bonds (Aurora Healthcare, Inc.), Series 1997, 5.250%, 8/15/17
-----------------------------------------------------------------------------------------------------------------------------------
WYOMING - 1.1%
13,965 Wyoming Community Development Authority, Housing 12/07 at 101.50 AAA 14,105,906
Revenue Bonds, Series 6, 5.600%, 6/01/29
-----------------------------------------------------------------------------------------------------------------------------------
$ 2,158,700 Total Investments (cost $1,807,030,117) - 153.4% 1,892,381,291
=============----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 3.3%
13,000 Hapeville Development Authority, Georgia, Industrial P-1 13,000,000
Development Revenue Bonds (Hapeville Hotel Project),
Variable Rate Demand Bonds, 1.650%, 11/01/15+
5,000 Missouri Health and Educational Facilities Authority, Health A-1+ 5,000,000
Facilities Revenue Bonds (St. Francis Medical Center),
Series 1996A, Variable Rate Demand Bonds, 1.650%, 6/01/26+
20,000 New York City Transitional Finance Authority, New York, Future VMIG-1 20,000,000
Tax Secured Bonds, Fiscal 1998 Series C, Variable Rate
Demand Obligations, 1.650%, 5/01/28+
2,700 Port Authority of New York and New Jersey, Special Obligation VMIG-1 2,700,000
Bonds (Versatile Structure), Third Series, Variable Rate
Demand Bonds, 1.700%, 6/01/20+
------------------------------------------------------------------------------------------------------------------------------------
$ 40,700 Total Short-Term Investments (cost $40,700,000) 40,700,000
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (1.6)% (19,327,258)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.1)% (680,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $1,233,754,033
====================================================================================================================
All of the bonds in the portfolio, excluding temporary
investments in short-term securities, are either covered by
Original Issue Insurance, Secondary Market Insurance or
Portfolio Insurance, or are backed by an escrow or trust
containing sufficient U.S. Government or U.S. Government
agency securities, any of which ensure the timely payment of
principal and interest.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest. Securities are normally considered to be
equivalent to AAA rated securities.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that currently in
effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
27
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF)
Portfolio of
Investments April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 2.7%
$ 5,380 Mobile Board of Water and Sewer Commissioners, Alabama, 1/12 at 100.00 AAA $ 5,442,677
Water and Sewer Revenue Bonds, Series 2002, 5.250%, 1/01/21
2,450 City of Montgomery BMC Special Care Facilities Financing 12/02 at 102.00 AAA 2,562,798
Authority, Alabama, Revenue Bonds (Baptist Medical Center),
Series 1992-B, 6.700%, 12/01/10
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.0%
2,890 Alaska Housing Finance Corporation, Governmental Purpose 12/05 at 102.00 AAA 2,939,275
Bonds, 1995 Series A, 5.875%, 12/01/24
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 38.3%
Abag Finance Authority for Nonprofit Corporations, Insured
Certificates of Participation (Children's Hospital Medical
Center of Northern California), Series 1999:
6,750 5.875%, 12/01/19 12/09 at 101.00 AAA 7,291,620
10,000 6.000%, 12/01/29 12/09 at 101.00 AAA 10,901,400
5,000 Antioch Area Public Facilities Financing Agency, Community 8/09 at 101.00 AAA 5,270,850
Facilities District No. 1989-1, Contra Costa County, California,
Special Tax Bonds, Series 1999, 5.700%, 8/01/22
3,250 California Pollution Control Financing Authority, Pollution 4/11 at 102.00 AAA 3,325,433
Control Refunding Revenue Bonds (Pacific Gas and Electric Company),
1996A Series Remarketed, 5.350%, 12/01/16 (Alternative
Minimum Tax)
10,000 State of California, Veterans General Obligation Bonds, 2001 6/07 at 101.00 AAA 9,897,800
Series BZ, 5.350%, 12/01/21 (Alternative Minimum Tax)
685 Kern County Housing Authority, California, Guaranteed Tax- No Opt. Call AAA 771,022
Exempt Mortgage Obligations, 1994 Series A, Subseries I,
7.150%, 12/30/24 (Alternative Minimum Tax)
550 Kern County Housing Authority, California, Guaranteed Tax- No Opt. Call AAA 621,924
Exempt Mortgage Obligations, 1994 Series A, Subseries III,
7.450%, 6/30/25 (Alternative Minimum Tax)
5,605 La Verne-Grand Terrace Housing Finance Agency, California, No Opt. Call AAA 7,996,710
Single Family Residential Mortgage Revenue Bonds,
1984 Series A, 10.250%, 7/01/17
5,840 Lancaster Redevelopment Agency, California, Tax Allocation 8/02 at 101.50 AAA 5,982,146
Refunding Bonds (Lancaster Residential Redevelopment Project Area),
Issue 1992, 6.100%, 8/01/19
11,080 City of Lodi, California, Electric System Revenue Certificates of 1/09 at 40.71 AAA 3,410,867
Participation, 1999 Series B, 0.000%, 1/15/24
(Pre-refunded to 1/15/09)
5,000 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 6,562,600
County, California, 1995 Revenue Refunding Bonds
(Project No. 1), 7.400%, 8/01/25
8,880 City of Pomona, California, Single Family Mortgage Revenue No Opt. Call AAA 11,316,139
Refunding Bonds (GNMA and FHLMC Mortgage-Backed
Securities), Series 1990B, 7.500%, 8/01/23
10,305 City of San Bernardino, California, Single Family Mortgage No Opt. Call AAA 13,159,794
Revenue Refunding Bonds (GNMA Mortgage-Backed
Securities), Series 1990A, 7.500%, 5/01/23
14,755 San Bernardino County, California, Single Family Mortgage No Opt. Call AAA 18,760,097
Revenue Bonds (GNMA Mortgage-Backed Securities),
1988 Series A, 8.300%, 9/01/14 (Alternative Minimum Tax)
4,300 City and County of San Francisco Airports Commission, 5/11 at 100.00 AAA 4,298,538
California, San Francisco International Airport, Second
Series Revenue Refunding Bonds, Issue 27A, 5.125%, 5/01/19
2,000 City of Santa Barbara, California, Certificates of Participation 10/02 at 102.00 AAA 2,046,980
(1992 Water System Improvement Project and Refunding),
6.700%, 4/01/27
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 2.6%
6,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 102.00 AAA 6,366,780
Bonds, Series 2000A, 5.750%, 9/01/29
1,225 Summit School District RE-1, Summit County, Colorado, 12/04 at 100.00 AAA 1,354,274
General Obligation Improvement Bonds, Series 1994,
6.700%, 12/01/14 (Pre-refunded to 12/01/04)
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.5%
$ 30,000 Miami-Dade County, Florida, Subordinate Special Obligation 4/08 at 37.30 AAA $ 7,347,300
Bonds, Series 1997A, 0.000%, 10/01/26
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 5.9%
10,000 Burke County Development Authority, Georgia, Pollution 1/03 at 103.00 AAA 10,710,600
Control Revenue Bonds (Oglethorpe Power Corporation Vogtle
Project), Series 1992, 8.000%, 1/01/15 (Pre-refunded to 1/01/03)
6,500 Georgia Medical Center Hospital Authority, Revenue 8/09 at 102.00 AAA 6,614,920
Anticipation Certificates (Columbus Regional Healthcare
System, Inc. Project), Series 1999, 5.500%, 8/01/25
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 4.9%
8,030 State of Hawaii, Airports System Revenue Bonds, Refunding 7/10 at 101.00 AAA 9,006,127
Series 2000B, 6.500%, 7/01/15 (Alternative Minimum Tax)
Hawaii Department of Budget and Finance, Special Purpose
Revenue Bonds (Hawaiian Electric Company, Inc. and
Subsidiaries Projects), Series 1999D:
2,250 6.150%, 1/01/20 (Alternative Minimum Tax) 1/09 at 101.00 AAA 2,400,660
2,750 6.200%, 11/01/29 (Alternative Minimum Tax) 11/09 at 101.00 AAA 2,937,440
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 20.4%
10,000 City of Chicago, Illinois, General Obligation Refunding Bonds, 1/10 at 101.00 AAA 10,103,500
Series 2000D, 5.500%, 1/01/35
8,200 Board of Education of the City of Chicago, Illinois, General No Opt. Call AAA 9,449,106
Obligation Lease Certificates, 1992 Series A, 6.250%, 1/01/15
23,610 Illinois Development Finance Authority, Local Government No Opt. Call Aaa 10,974,872
Program Bonds (Elgin School District No. U46, Kane, Cook and
DuPage Counties), Series 2002, 0.000%, 1/01/17
10,010 Illinois Development Finance Authority, Revenue Bonds 2/05 at 102.00 AAA 10,080,270
(Catholic Health Partners Services), Series 1995A, 5.300%, 2/15/18
10,150 Onterie Center Housing Finance Corporation (An Illinois Not 7/02 at 102.00 AAA 10,407,607
For Profit Corporation), Mortgage Revenue Refunding Bonds
(FHA-Insured Mortgage Loan - Onterie Center Project), Series 1992A,
7.050%, 7/01/27
3,225 Cook, DuPage, Kane, Lake, McHenry and Will Counties No Opt. Call AAA 4,189,243
Regional Transportation Authority, Illinois, General Obligation Bonds,
Series 1992A, 9.000%, 6/01/09
4,000 St. Clair County Public Building Commission, Illinois, Public 12/02 at 102.00 AAA 4,121,120
Building Revenue Bonds, Series 1992, 6.350%, 12/01/09
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.9%
5,375 Indiana Health Facility Financing Authority, Hospital Revenue 5/02 at 102.00 AAA 5,500,399
Refunding and Improvement Bonds (Community Hospitals
Projects), Series 1992, 6.400%, 5/01/12
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 2.3%
6,500 Daviess County, Kentucky, Insured Hospital Revenue Bonds 8/02 at 102.00 AAA 6,705,595
(ODCH, Inc. Project), 1992 Series A, 6.250%, 8/01/22
(Pre-refunded to 8/01/02)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.3%
Louisiana Public Facilities Authority, Hospital Revenue Bonds
(Our Lady of Lourdes Regional Medical Center Project), Series
1992:
5,000 6.375%, 2/01/12 (Pre-refunded to 2/01/03) 2/03 at 102.00 AAA 5,270,150
4,000 6.450%, 2/01/22 (Pre-refunded to 2/01/03) 2/03 at 102.00 AAA 4,218,320
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.7%
5,000 Maryland Transportation Authority, Baltimore-Washington 3/12 at 101.00 AAA 4,959,700
International Airport, Parking Revenue Bonds, Series 2002B,
5.125%, 3/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.9%
8,335 Massachusetts Health and Educational Facilities Authority, 7/02 at 102.00 AAA 8,552,293
Revenue Bonds, New England Medical Center Hospitals Issue,
Series F, 6.625%, 7/01/25
29
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF) (continued)
Portfolio of Investments April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.5%
$ 2,250 City of Kalamazoo Hospital Finance Authority, Michigan, 5/06 at 102.00 AAA $ 2,353,095
Hospital Revenue Refunding and Improvement Bonds (Bronson
Methodist Hospital), Series 1996, 5.750%, 5/15/16
6,500 Michigan Higher Education Student Loan Authority, Student No Opt. Call AAA 6,899,490
Loan Refunding Revenue Bonds, Series XII-T, 5.300%, 9/01/10
(Alternative Minimum Tax)
3,810 Michigan Housing Development Authority, Limited Obligation 8/12 at 102.00 Aaa 3,736,772
Multifamily Housing Revenue Bonds (GNMA Collateralized Program -
Cranbrook Apartments), Series 2001A, 5.500%, 2/20/43
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.1%
4,900 Minneapolis-St. Paul Metropolitan Airports Commission, 1/10 at 101.00 AAA 5,331,886
Minnesota, Airport Revenue Bonds, Series 2000B,
6.000%, 1/01/14 (Alternative Minimum Tax)
4,860 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 5,167,978
Minnesota, Airport Revenue Bonds, Series 2001B,
5.750%, 1/01/15 (Alternative Minimum Tax)
1,340 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102.00 AAA 1,372,039
1995 Series D, 5.950%, 2/01/18
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 3.5%
7,495 Jefferson County Industrial Development Authority, Missouri, 8/07 at 100.00 AAA 10,136,163
Housing Revenue Bonds (Richardson Road Apartments Project),
Series 1985, 11.000%, 12/15/15 (Pre-refunded to 8/15/07)
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 4.6%
13,000 City of Forsyth, Rosebud County, Montana, Pollution Control 9/02 at 102.00 AAA 13,303,030
Revenue Refunding Bonds (Puget Sound Power and Light
Company Colstrip Project), Series 1992, 6.800%, 3/01/22
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 5.2%
10,000 Clark County, Nevada, Airport System Subordinate Lien 7/11 at 100.00 AAA 9,903,000
Revenue Bonds, Series 2001B, 5.125%, 7/01/21
5,050 Washoe County, Nevada, Gas and Water Facilities Refunding 7/02 at 102.00 AAA 5,194,077
Revenue Bonds (Sierra Pacific Power Company Project),
Series 1987 Remarketed, 6.300%, 12/01/14
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 3.1%
7,645 Metropolitan Transportation Authority, New York, Transit No Opt. Call AAA 9,075,762
Facilities Revenue Bonds, Series J, 9.100%, 7/01/05
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 4.4%
3,640 Oklahoma Housing Finance Agency, GNMA Collateralized No Opt. Call AAA 4,062,131
Single Family Mortgage Revenue Bonds, Series 1987A,
7.997%, 8/01/18 (Alternative Minimum Tax)
5,440 Sapulpa Municipal Authority, Oklahoma, Capital Improvement 7/10 at 101.00 AAA 5,718,474
Revenue Bonds, Series 2000 Refunding, 5.625%, 7/01/20
3,000 Tulsa Industrial Authority, Oklahoma, Multifamily Housing 11/05 at 103.00 Aaa 3,127,440
Revenue Refunding Bonds (GNMA Collateralized - Country Club of
Woodland Hills Development), Series 1995, 6.250%, 11/01/27
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.8%
5,000 Oregon Health, Housing, Educational and Cultural Facilities 3/12 at 105.00 Aaa 5,378,250
Authority, Revenue Bonds (GNMA Mortgage-Backed Securities
Program - Necanicum Village Assisted Living Project),
2001 Series A, 5.000%, 6/20/42
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 6.7%
19,140 Montgomery County Industrial Development Authority, 6/02 at 102.00 AAA 19,592,470
Pennsylvania, Pollution Control Revenue Refunding Bonds (Philadelphia
Electric Company Project), 1992 Series A, 6.625%, 6/01/22
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.5%
10,000 Piedmont Municipal Power Agency, South Carolina, Electric 7/02 at 101.00 AAA 10,189,500
Revenue Refunding Bonds, Series 1991, 6.250%, 1/01/18
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.8%
5,000 Health and Educational Facilities Board of the Metropolitan 11/09 at 101.00 AAA 5,267,650
Government of Nashville and Davidson County, Tennessee, Revenue
Bonds (Ascension Health Credit Group), Series 1999A,
6.000%, 11/15/30
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 9.6%
$ 5,000 Bexar County, Texas, Health System Revenue Refunding Bonds 11/07 at 102.00 AAA $ 4,900,650
(Baptist Health System), Series A-1, 5.250%, 11/15/27
755 Corpus Christi Housing Finance Corporation, Texas, Single 7/02 at 102.00 AAA 780,293
Family Mortgage Senior Revenue Refunding Bonds,
Series 1991A, 7.700%, 7/01/11
12,500 Cities of Dallas and Fort Worth, Texas, Dallas-Fort Worth 11/09 at 100.00 AAA 12,274,750
International Airport, Joint Revenue Refunding and Improvement
Bonds, Series 2001A, 5.500%, 11/01/35 (Alternative Minimum Tax)
680 City of El Paso Property Finance Authority, Inc., Texas, Single 6/02 at 103.00 Aaa 701,066
Family Mortgage Revenue Bonds (GNMA Mortgage-Backed
Securities Program), Series 1992A, 8.700%, 12/01/18
(Alternative Minimum Tax)
1,600 Harris County, Texas, Toll Road Senior Lien Revenue 8/02 at 100.00 AAA 1,605,856
Refunding Bonds, Series 1992B, 6.625%, 8/15/17
7,600 City of San Antonio, Texas, Airport System Improvement 7/11 at 101.00 AAA 7,730,492
Revenue Bonds, Series 2001, 5.375%, 7/01/16 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.3%
3,635 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 3,651,903
Mortgage Bonds, 2001 Series C, Subseries C-2,
5.450%, 7/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 4.7%
4,715 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 10/11 at 100.00 AAA 4,888,842
5.625%, 4/01/17 (Alternative Minimum Tax)
1,650 Port of Seattle, Washington, Special Facility Revenue 3/10 at 101.00 AAA 1,739,447
Bonds (Terminal 18 Project), Series 1999C, 6.000%, 9/01/29
(Alternative Minimum Tax)
6,990 Washington Public Power Supply System, Nuclear Project No.1 7/08 at 102.00 AAA 7,059,689
Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 2.1%
6,000 Mason County, West Virginia, Pollution Control Revenue 6/02 at 102.00 AAA 6,140,879
Bonds (Appalachian Power Company Project), Series I, 6.850%, 6/01/22
------------------------------------------------------------------------------------------------------------------------------------
$ 454,075 Total Investments (cost $419,044,230) - 151.3% 441,112,020
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.9% 11,321,575
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.2)% (161,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 291,433,595
====================================================================================================================
All of the bonds in the portfolio are either covered by
Original Issue Insurance, Secondary Market Insurance or
Portfolio Insurance, or are backed by an escrow or trust
containing sufficient U.S. Government or U.S. Government
agency securities, any of which ensure the timely payment of
principal and interest.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
See accompanying notes to financial statements.
31
Nuveen Insured Premium Income Municipal Fund 2 (NPX)
Portfolio of
Investments April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.8%
Jefferson County, Alabama, Sewer Revenue Warrants, Series 1997D:
$ 5,000 5.700%, 2/01/20 2/07 at 101.00 AAA $ 5,208,150
8,800 5.750%, 2/01/22 2/07 at 101.00 AAA 9,169,600
2,500 City of Mobile, Alabama, General Obligation Refunding 2/06 at 102.00 AAA 2,777,725
Warrants, Series 1996, 5.750%, 2/15/16 (Pre-refunded to 2/15/06)
2,000 City of Scottsboro, Alabama, General Obligation School 7/06 at 102.00 AAA 2,131,500
Warrants, Series 1996-B, 5.750%, 7/01/14
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.5%
2,350 Alaska Housing Finance Corporation, Mortgage Revenue 6/06 at 102.00 AAA 2,450,580
Bonds, 1996 Series A, 6.050%, 12/01/17
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 9.6%
6,450 California Housing Finance Agency, Multi-Unit Rental Housing 2/03 at 102.00 Aa2 6,605,897
Revenue Bonds, Series 1992A-II, 6.625%, 2/01/24 (Alternative
Minimum Tax)
9,350 State of California, Veterans General Obligation Bonds, 2001 6/07 at 101.00 AAA 9,254,443
Series BZ, 5.350%, 12/01/21 (Alternative Minimum Tax)
31,200 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 24.23 AAA 4,725,864
Toll Road Refunding Revenue Bonds, Series 1999, 0.000%, 1/15/34
6,850 Orange County, California, 1996 Recovery Certificates of 7/06 at 102.00 AAA 7,580,895
Participation, Series A, 6.000%, 7/01/26
13,000 Sacramento Financing Authority, California, Capital 12/09 at 102.00 AAA 14,055,470
Improvement Revenue Bonds (Solid Waste and Redevelopment
Projects), Series 1999, 5.800%, 12/01/19
San Leandro Housing Finance Corporation, California, Mortgage
Revenue Refunding Bonds (FHA-Insured Mortgage Loan - Ashland
Village Apartments Section 8 Assisted Project), Series 1993A:
1,335 6.550%, 1/01/12 7/02 at 102.00 AAA 1,363,569
5,100 6.650%, 1/01/25 7/02 at 102.00 AAA 5,198,430
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 3.9%
Colorado Health Facilities Authority, Hospital Revenue Bonds
(Poudre Valley Healthcare, Inc.), Series 1999A:
2,480 5.625%, 12/01/19 12/09 at 101.00 Aaa 2,582,622
3,500 5.750%, 12/01/23 12/09 at 101.00 Aaa 3,647,770
12,955 City and County of Denver, Colorado, Airport System Revenue 11/05 at 102.00 AAA 13,376,815
Bonds, Series 1995A, 5.600%, 11/15/20
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.8%
5,000 District of Columbia, Hospital Improvement and Refunding 7/02 at 102.00 AAA 5,136,350
Revenue Bonds, Children's Hospital Issue, Series 1992A,
6.250%, 7/15/19
3,765 District of Columbia Housing Finance Agency, Collateralized 6/03 at 102.00 AAA 3,827,800
Single Family Mortgage Revenue Bonds, Series 1990C-4,
6.350%, 12/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.6%
3,000 Valdosta and Lowndes County Hospital Authority, Georgia, 10/12 at 101.00 AAA 2,997,240
South Georgia Medical Center Project Revenue Certificates,
Series 2002, 5.200%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 8.7%
State of Hawaii, Airports System Revenue Bonds, Refunding
Series 2000B:
6,105 6.100%, 7/01/16 (Alternative Minimum Tax) 7/10 at 101.00 AAA 6,633,937
9,500 6.625%, 7/01/17 (Alternative Minimum Tax) 7/10 at 101.00 AAA 10,631,735
2,000 6.625%, 7/01/18 (Alternative Minimum Tax) 7/10 at 101.00 AAA 2,231,100
24,000 Hawaii Department of Budget and Finance, Special Purpose 7/10 at 101.00 AAA 24,788,400
Revenue Bonds (Hawaiian Electric Company, Inc. and Subsidiary
Projects), Refunding Series 2000, 5.700%, 7/01/20
(Alternative Minimum Tax)
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.4%
$ 1,915 Idaho Housing and Finance Association, Single Family 1/08 at 101.50 AAA $ 1,986,602
Mortgage Bonds, 1998 Series E, 5.450%, 7/01/18
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 18.3%
2,500 City of Aurora, Kane, DuPage, Kendall and Will Counties, 1/05 at 100.00 AAA 2,688,500
Illinois, General Obligation Corporate Purpose Bonds,
Series 1996, 5.800%, 1/01/14 (Pre-refunded to 1/01/05)
1,500 City of Chicago, Illinois, General Obligation Bonds, Project 7/05 at 102.00 AAA 1,674,000
Series 1995, 6.125%, 1/01/16 (Pre-refunded to 7/01/05)
8,370 City of Chicago, Illinois, Chicago Midway Airport, Revenue 1/07 at 101.00 AAA 8,691,994
Bonds, Series 1996A, 5.625%, 1/01/17
City of Chicago, Illinois, Chicago Midway Airport, Revenue
Bonds, 1994 Series A:
280 6.100%, 1/01/08 (Alternative Minimum Tax) 1/04 at 102.00 AAA 293,440
710 6.250%, 1/01/14 (Alternative Minimum Tax) 1/04 at 102.00 AAA 751,230
8,235 City of Chicago, Illinois, Chicago-O'Hare International Airport, 1/05 at 102.00 AAA 8,849,825
General Airport Second Lien Revenue Refunding Bonds,
1994 Series A, 6.375%, 1/01/15
10,000 City of Chicago, Illinois, Chicago-O'Hare International Airport, 1/10 at 101.00 AAA 10,175,500
General Airport Second Lien Revenue Refunding Bonds,
1999 Series, 5.500%, 1/01/17 (Alternative Minimum Tax)
Illinois Development Finance Authority, Local Government Program
Bonds (Elgin School District No. U46, Kane, Cook and DuPage
Counties), Series 2002:
22,215 0.000%, 1/01/18 No Opt. Call Aaa 9,704,178
18,180 0.000%, 1/01/20 No Opt. Call Aaa 6,989,301
9,680 City of Chicago Educational Facilities Authority, Illinois, 6/08 at 100.00 AAA 9,501,501
Columbia College Revenue Bonds, Series 1998,
5.000%, 12/01/20
1,950 Illinois Health Facilities Authority, Health Facilities Refunding No Opt. Call AAA 2,299,635
Revenue Bonds (SSM Healthcare), Series 1992AA, 6.550%, 6/01/14
Illinois Health Facilities Authority, Revenue Bonds (Lutheran
General Health System), Series 1993A:
4,355 6.125%, 4/01/12 No Opt. Call AAA 4,900,812
5,000 6.250%, 4/01/18 No Opt. Call AAA 5,777,250
2,815 Illinois Housing Development Authority, Housing Development 1/04 at 102.00 A+ 2,884,868
Bonds, 1993 Series A, 6.000%, 7/01/18
1,770 Illinois Health Facilities Authority, Revenue Bonds (Elmhurst 7/02 at 101.50 AAA 1,810,675
Memorial Hospital), Series 1991, 6.625%, 1/01/22
6,335 Metropolitan Pier and Exposition Authority, Illinois, McCormick 6/03 at 102.00 AAA 6,773,699
Place Expansion Project Bonds, Series 1992A,
6.500%, 6/15/22 (Pre-refunded to 6/15/03)
1,390 City of Peoria, Moline and Freeport, Illinois, Collateralized 10/05 at 105.00 AAA 1,520,813
Single Family Mortgage Revenue Bonds, Series 1995A,
7.600%, 4/01/27 (Alternative Minimum Tax)
17,010 Community Unit School District No. 365U, Will County, Illinois, No Opt. Call AAA 8,056,446
General Obligation Bonds (Valley View Public Schools),
Series 2002, 0.000%, 11/01/16
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.7%
1,000 Fort Wayne South Side School Building Corporation, Allen 1/04 at 102.00 AAA 1,080,490
County, Indiana, First Mortgage Bonds, Series 1994,
6.125%, 1/15/12 (Pre-refunded to 1/15/04)
2,220 Indiana Municipal Power Agency, Power Supply System 1/03 at 102.00 AAA 2,326,405
Revenue Bonds, 1993 Series A, 6.125%, 1/01/19
5,285 Logansport School Building Corporation, Indiana, First 7/11 at 100.00 AAA 5,232,837
Mortgage Bonds, Series 2001, 5.125%, 1/15/22
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.3%
515 City of Olathe, Kansas and Labette Counties, Kansas, 2/05 at 105.00 Aaa 554,516
Collateralized Single Family Mortgage Refunding Revenue
Bonds, Series A-I, 8.100%, 8/01/23 (Alternative Minimum Tax)
975 Sedwick and Shawnee Counties, Kansas, Collateralized Single 11/04 at 105.00 Aaa 1,068,883
Family Mortgage Refunding Revenue Bonds, Series A-II, 8.050%,
5/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.0%
23,340 Kentucky Economic Development Finance Authority, Health No Opt. Call AAA 5,207,854
System Revenue Bonds (Norton Healthcare Inc.),
Series 2000B, 0.000%, 10/01/28
33
Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued)
Portfolio of Investments April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.8%
$ 5,000 Massachusetts Housing Finance Agency, Housing Project 4/03 at 102.00 AAA $ 5,146,050
Revenue Bonds, Series 1993A Refunding, 6.150%, 10/01/15
6,295 Massachusetts Housing Finance Agency, Single Family 6/06 at 102.00 AAA 6,551,081
Housing Revenue Bonds, Series 48, 6.350%, 6/01/26
(Alternative Minimum Tax)
4,695 Massachusetts Housing Finance Agency, Single Family 6/07 at 102.00 AAA 4,852,376
Housing Revenue Bonds, Series 53, 6.150%, 12/01/29
(Alternative Minimum Tax)
2,550 Massachusetts Housing Finance Agency, Rental Housing 7/02 at 100.00 AAA 2,551,148
Mortgage Revenue Bonds, Series 2001A, 6.000%, 1/01/43
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 6.9%
4,705 The Board of Control of Grand Valley State University, 12/10 at 100.00 AAA 4,761,507
Michigan, General Revenue Bonds, Series 2000,
.250%, 12/01/20
9,250 Michigan Public Power Agency, Belle River Project Refunding 1/03 at 102.00 AAA 9,305,315
Revenue Bonds, 1993 Series A, 5.250%, 1/01/18
10,000 Michigan Housing Development Authority, Rental Housing 4/07 at 102.00 AAA 10,353,800
Revenue Bonds, 1997 Series A, 6.000%, 4/01/16
(Alternative Minimum Tax)
10,000 Monroe County, Michigan, Pollution Control Revenue Bonds 9/03 at 102.00 AAA 10,630,400
(Detroit Edison Company Project), Series CC-1992,
6.550%, 9/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.2%
3,000 Duluth Economic Development Authority, Minnesota, Hospital 5/02 at 102.00 AAA 3,116,220
Facilities Revenue Bonds (St. Luke's Hospital of Duluth
Project), Series 1992B, 6.400%, 5/01/18
8,080 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102.00 AAA 8,273,193
1995 Series D, 5.950%, 2/01/18
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.6%
1,000 City of Hazelwood Industrial Development Authority, Missouri, 9/06 at 102.00 AAA 1,044,880
Multifamily Housing Revenue Refunding Bonds (GNMA Collateralized -
The Lakes Apartments Project), Series 1996, 6.000%, 9/20/16
4,500 Land Clearance for Redevelopment Authority of Kansas City, 12/05 at 102.00 AAA 4,748,130
Missouri, Lease Revenue Bonds (Municipal Auditorium and Muehlebach
Hotel Redevelopment Projects), Series 1995A, 5.900%, 12/01/18
1,000 Kansas City Municipal Assistance Corporation, Missouri, 1/06 at 101.00 AAA 1,050,830
Leasehold Revenue Bonds, Capital Improvement Series 1996B,
5.750%, 1/15/14
1,030 Missouri Housing Development Commission, Multifamily 12/06 at 102.00 AAA 1,061,518
Housing Revenue Bonds (Brookstone Village Apartments Project),
1996 Series A, 6.000%, 12/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 9.9%
5,000 Clark County, Nevada, Industrial Development Revenue Bonds 6/02 at 102.00 AAA 5,117,150
(Nevada Power Company Project), Series 1992A,
6.700%, 6/01/22 (Alternative Minimum Tax)
5,000 Clark County, Nevada, Industrial Development Revenue 7/10 at 102.00 AAA 5,256,250
Bonds (Southwest Gas Corporation), Series 2000C,
5.950%, 12/01/38 (Alternative Minimum Tax)
Director of the State of Nevada, Department of Business and
Industry, Revenue Bonds (Las Vegas Monorail Project), 1st Tier
Series 2000:
5,500 5.625%, 1/01/32 1/10 at 102.00 AAA 5,639,700
10,000 5.375%, 1/01/40 1/10 at 100.00 AAA 9,903,400
Las Vegas Convention and Visitors Authority, Nevada, Revenue
Bonds, Series 1999:
2,695 5.750%, 7/01/15 7/09 at 101.00 AAA 2,904,294
6,035 5.750%, 7/01/16 7/09 at 101.00 AAA 6,473,081
6,500 5.750%, 7/01/17 7/09 at 101.00 AAA 6,933,160
3,535 7/01/18 7/09 at 101.00 AAA 3,755,796
4,000 6.000%, 7/01/19 7/09 at 101.00 AAA 4,315,160
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 17.7%
$ 4,090 Metropolitan Transportation Authority, New York, Commuter No Opt. Call AAA $ 4,982,315
Facilities Revenue Bonds, Series 1994A, 8.000%, 7/01/07
4,985 Metropolitan Transportation Authority, New York, Transit No Opt. Call AAA 6,072,577
Facilities Revenue Bonds, Series O, 8.000%, 7/01/07
Nassau County, New York, General Improvement Bonds, Series E:
1,755 6.000%, 3/01/16 3/10 at 100.00 AAA 1,933,799
2,740 6.000%, 3/01/18 3/10 at 100.00 AAA 2,988,847
2,265 Nassau County, New York, General Obligation Serial 3/10 at 100.00 AAA 2,683,753
Improvement Bonds, Series F, 7.000%, 3/01/14
7,500 Nassau Healthcare Corporation, New York, Health System 8/09 at 102.00 AAA 7,914,825
Revenue Bonds (Nassau County Guaranteed), Series 1999,
5.750%, 8/01/29
4,000 City of New York, New York, General Obligation Bonds, Fiscal No Opt. Call AAA 4,596,760
1995 Series E, 8.000%, 8/01/05
7,900 City of New York, New York, General Obligation Bonds, 3/06 at 101.50 AAA 8,331,024
Fiscal 1996 Series I, 5.875%, 3/15/18
1,675 City of New York, New York, General Obligation Bonds, 8/02 at 101.50 AAA 1,715,217
Fiscal 1993 Series A, 5.750%, 8/01/10
7,000 City of New York Municipal Water Finance Authority, New 6/09 at 101.00 AAA 7,339,430
York, Water and Sewer System Revenue Bonds, Fiscal 2000
Series A, 5.750%, 6/15/31
New York State Dormitory Authority, New Island Hospital
Insured Revenue Bonds, Series 1999B:
3,400 5.750%, 7/01/19 7/09 at 101.00 AAA 3,618,994
5,750 6.000%, 7/01/24 7/09 at 101.00 AAA 6,174,120
10,000 New York State Housing Finance Agency, Housing Project 5/06 at 102.00 AAA 10,554,600
Mortgage Revenue Bonds, 1996 Series A Refunding,
6.125%, 11/01/20
6,095 New York State Medical Care Facilities Finance Agency, 2/05 at 102.00 AAA 6,776,726
Mental Health Services Facilities Improvement Revenue Bonds,
1995 Series A, 6.000%, 8/15/15 (Pre-refunded to 2/15/05)
New York State Medical Care Facilities Finance Agency, Hospital
FHA-Insured Mortgage Revenue Bonds, Series 1994A:
3,000 6.750%, 8/15/14 (Pre-refunded to 2/15/05) 2/05 at 102.00 AAA 3,395,820
2,500 6.800%, 8/15/24 (Pre-refunded to 2/15/05) 2/05 at 102.00 AAA 2,833,200
New York State Urban Development Corporation, Correctional
Capital Facilities Revenue Bonds, Series 7:
3,505 5.700%, 1/01/27 1/07 at 102.00 AAA 3,635,386
5,000 5.700%, 1/01/27 1/07 at 102.00 AAA 5,186,000
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 3.8%
10,715 City of Fargo, North Dakota, Health System Revenue Bonds 6/10 at 101.00 AAA 11,005,269
(MertiCare Obligated Group), Series 2000A, 5.600%, 6/01/21
8,000 State of North Dakota, Student Loan Revenue Bonds, 12/10 at 100.00 AAA 8,123,520
Series 2000B, 5.850%, 12/01/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.1%
Oklahoma City, Oklahoma, Airport Trust Junior Lien Tax-Exempt
Bonds, Twenty-Seventh Series 2000A:
1,320 5.125%, 7/01/20 7/10 at 100.00 AAA 1,315,274
4,040 5.250%, 7/01/21 7/10 at 100.00 AAA 4,057,008
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 3.7%
City of Portland, Oregon, Airport Way Urban Renewal and
Redevelopment Bonds, 2000 Series A:
4,405 5.700%, 6/15/17 6/10 at 101.00 Aaa 4,686,524
3,665 5.750%, 6/15/18 6/10 at 101.00 Aaa 3,901,502
4,265 5.750%, 6/15/19 6/10 at 101.00 Aaa 4,517,659
1,375 5.750%, 6/15/20 6/10 at 101.00 Aaa 1,458,518
Portland Housing Authority, Oregon, Multifamily Housing Revenue
Bonds (Lovejoy Station Apartments Project), Series 2000:
1,500 5.900%, 7/01/23 (Alternative Minimum Tax) 7/10 at 100.00 Aaa 1,540,905
2,520 6.000%, 7/01/33 (Alternative Minimum Tax) at 100.00 Aaa 2,590,106
35
Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued)
Portfolio of Investments April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 6.4%
$ 12,620 Allegheny County Hospital Development Authority, 11/10 at 102.00 AAA $ 13,833,539
Pennsylvania, Health System Insured Revenue Bonds (West Penn
Allegheny Health System), Series 2000A, 6.500%, 11/15/30
3,195 Allegheny County Residential Finance Authority, Pennsylvania, 11/06 at 102.00 Aaa 3,347,689
Single Family Mortgage Revenue Bonds, 1996 Series AA,
6.450%, 5/01/28 (Alternative Minimum Tax)
9,485 Berks County Municipal Authority, Pennsylvania, Hospital 11/09 at 102.00 AAA 10,955,554
Revenue Bonds (The Reading Hospital and Medical Center Project),
Series 1999, 6.000%, 11/01/19 (Pre-refunded to 11/01/09)
1,000 Luzerne County Industrial Development Authority, 12/04 at 102.00 AAA 1,111,590
Pennsylvania, Exempt Facilities Revenue Refunding Bonds (Pennsylvania
Gas and Water Company Project), 1994 Series A, 7.000%, 12/01/17
Alternative Minimum Tax)
3,355 Pennsylvania Commonwealth System of Higher Education, 6/02 at 102.00 AAA 3,430,555
University Capital Project Bonds (University of Pittsburgh),
1992 Series A, 6.125%, 6/01/21
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.3%
6,500 Piedmont Municipal Power Agency, South Carolina, Electric 1/03 at 102.00 AAA 6,825,845
Revenue Bonds, 1992 Refunding Series, 6.300%, 1/01/22
(Pre-refunded to 1/01/03)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 11.0%
12,500 Cities of Dallas and Fort Worth, Texas, Dallas-Fort Worth 11/09 at 100.00 AAA 12,274,750
International Airport, Joint Revenue Refunding and
Improvement Bonds, Series 2001A, 5.500%, 11/01/35
(Alternative Minimum Tax)
3,895 City of Denton, Texas, Utility System Revenue Bonds, 12/10 at 100.00 AAA 4,064,433
Series 2000A, 5.625%, 12/01/19
4,176 Panhandle Regional Housing Finance Corporation, Texas, 7/12 at 105.00 Aaa 4,575,685
Multifamily Housing Revenue Bonds (Ginnie Mae Collateralized
Mortgage - Renaissance of Amarillo Apartments),
Series 2001A, 6.650%, 7/20/42
Tarrant County Health Facilities Development Corporation, Texas,
Hospital Revenue Bonds (Cook Children's Medical Center Project),
Series 2000A:
6,725 5.750%, 12/01/17 12/10 at 101.00 AAA 7,118,211
7,500 5.750%, 12/01/24 12/10 at 101.00 AAA 7,753,575
10,627 Tarrant County Housing Finance Corporation, Texas, 10/11 at 105.00 Aaa 11,586,724
Multifamily Housing Revenue Bonds (GNMA Collateralized Mortgage
Loan - Legacy Senior Residence Apartments Project), Series 2001,
6.625%, 4/20/42
State of Texas, Veterans Housing Assistance General Obligation
Bonds, Series 1993:
1,315 6.800%, 12/01/23 (Alternative Minimum Tax) 12/03 at 102.00 Aa1 1,384,406
6,585 6.800%, 12/01/23 (Alternative Minimum Tax) 12/03 at 102.00 AAA 6,970,683
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 3.0%
Intermountain Power Agency, Utah, Power Supply Revenue
Refunding Bonds, 1993 Series A:
4,595 5.500%, 7/01/20 7/03 at 102.00 AAA 4,653,862
4,970 5.500%, 7/01/20 7/03 at 102.00 AAA 5,033,815
2,000 Salt Lake City, Utah, Hospital Revenue Bonds (IHC Hospitals, 8/02 at 100.00 AAA 2,001,000
Inc.), Series 1992, 5.500%, 2/15/21
3,600 State Board of Regents of the State of Utah, Student Loan 11/03 at 102.00 Aaa 3,725,820
Revenue Bonds, Series 1993B, 5.900%, 11/01/13 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.3%
1,320 Vermont Educational and Health Buildings Financing Agency, 12/10 at 101.00 AAA 1,400,388
Hospital Revenue Bonds (Fletcher Allen Healthcare Project),
Series 2000A, 6.000%, 12/01/23
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.5%
2,250 Virginia Housing Development Authority, Multifamily Housing 1/08 at 102.00 AAA 2,361,668
Bonds, Series 1997B, 6.050%, 5/01/17 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 12.4%
10,000 Public Utility District No. 1, Chelan County, Washington, 7/11 at 101.00 AAA 10,053,000
Chelan Hydro Consolidated System Revenue Bonds, Series 2001B,
5.600%, 1/01/36 (Alternative Minimum Tax)
5,230 Public Utility District No. 1, Douglas County, Washington, 9/09 at 102.00 AAA 5,577,795
Wells Hydroelectric Revenue Bonds, Series 1999A,
6.125%, 9/01/29 (Alternative Minimum Tax)
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 3,485 Public Utility District No. 2, Grant County, Washington, Priest 1/06 at 102.00 AAA $ 3,599,203
Rapids Hydroelectric Development Revenue Bonds, Second Series
1996B, 5.900%, 1/01/21 (Alternative Minimum Tax)
2,500 City of Tacoma, Washington, Sewer Revenue Bonds, 1995 12/05 at 100.00 AAA 2,794,525
Series B, 6.375%, 12/01/15 (Pre-refunded to 12/01/05)
8,100 Washington Healthcare Facilities Authority, Revenue Bonds 2/03 at 102.00 AAA 8,458,992
(Virginia Mason Obligated Group, Seattle), eries 1992,
6.300%, 2/15/17
Washington Public Power Supply System, Nuclear Project No. 1
Refunding Revenue Bonds, Series 1993B:
10 5.600%, 7/01/15 (Pre-refunded to 7/01/03) 7/03 at 102.00 AAA 10,604
3,740 5.600%, 7/01/15 7/03 at 102.00 AAA 3,906,280
10,455 Washington Public Power Supply System, Nuclear Project 7/03 at 102.00 AAA 10,830,021
No. 1 Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17
10,500 Washington Public Power Supply System, Nuclear Project 7/06 at 102.00 AAA 11,381,685
No. 1 Refunding Revenue Bonds, Series 1996-A, 5.750%, 7/01/11
6,295 Washington Public Power Supply System, Nuclear Project 7/03 at 102.00 AAA 6,420,019
No. 3 Refunding Revenue Bonds, Series 1993B, 5.600%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 4.2%
20,000 Pleasants County Commission, West Virginia, Pollution Control 5/05 at 102.00 AAA 21,544,000
Revenue Bonds (Monongahela ower Company Pleasants Station
Project), 1995 Series C, 6.150%, 5/01/15
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 6.7%
7,000 La Crosse, Wisconsin, Resource Recovery Revenue Refunding No Opt. Call AAA 7,703,920
Bonds (Northern States Power Company Project), Series 1996,
6.000%, 11/01/21 (Alternative Minimum Tax)
Milwaukee County, Wisconsin, Airport Revenue Bonds, Series 2000A:
1,325 6.000%, 12/01/20 (Alternative Minimum Tax) 12/10 at 100.00 Aaa 1,405,600
12,750 5.750%, 12/01/25 (Alternative Minimum Tax) 12/10 at 100.00 Aaa 13,110,060
6,250 Wisconsin Health and Educational Facilities Authority, 8/06 at 102.00 AAA 6,542,750
Revenue Bonds (Sinai Samaritan Medical Center, Inc.
Project), Series 1996, 5.750%, 8/15/16
5,000 Wisconsin Health and Educational Facilities Authority, 8/05 at 102.00 AAA 5,401,599
Revenue Bonds (Mercy Health System Corporation),
Series 1995, 6.125%, 8/15/13
------------------------------------------------------------------------------------------------------------------------------------
$ 788,973 Total Investments (cost $708,550,046) - 147.1% 748,001,108
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 3.0%
10,000 Southern California Metropolitan Water District, Waterworks VMIG-1 10,000,000
Revenue Bonds, 2001 Series C-2, ariable Rate Demand
Obligations, 1.550%, 7/01/36+
5,300 Wisconsin Health and Educational Facilities Authority, VMIG-1 5,300,000
Revenue Bonds (ProHealth, Inc. Obligated Group),
Series 2001B, Variable Rate Demand Bonds,
1.700%, 8/15/30+
------------------------------------------------------------------------------------------------------------------------------------
$ 15,300 Total Short-Term Investments (cost $15,300,000) 15,300,000
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 14,152,925
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.9)% (268,900,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $508,554,033
====================================================================================================================
All of the bonds in the portfolio, excluding temporary
investments in short-term securities, are either covered by
Original Issue Insurance, Secondary Market Insurance or
Portfolio Insurance, or are backed by an escrow or trust
containing sufficient U.S. Government or U.S. Government
agency securities, any of which ensure the timely payment of
principal and interest.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that currently in
effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements
37
Nuveen Insured Dividend Advantage Municipal Fund (NVG)
Portfolio of
Investments April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 2.4%
$ 10,000 Jefferson County, Alabama, Sewer Revenue Capital 2/09 at 101.00 AAA $ 10,001,200
Improvement Warrants, Series 1999-A, 5.375%, 2/01/36
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 3.5%
15,000 State of Alaska, International Airport System Revenue Bonds, 10/12 at 100.00 AAA 14,751,300
Series 2002B, 5.250%, 10/01/27
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.3%
10,000 City of Phoenix, Arizona, Civic Improvement Corporation Airport 7/12 at 100.00 AAA 9,799,000
Revenue Bonds, Senior Lien Series 2002B, 5.250%, 7/01/32
(Alternative Minimum Tax) (WI, settling 5/08/02)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 12.7%
5,220 Anaheim Public Financing Authority, California, Senior Lease 9/07 at 101.00 AAA 5,012,714
Revenue Bonds (Anaheim Public Improvements Project),
1997 Series A, 5.000%, 3/01/37
3,200 State of California, General Obligation Various Purpose 9/10 at 100.00 AAA 3,321,152
Bonds, 5.250%, 9/01/17
10,000 State of California, General Obligation Bonds, Series 2002 No Opt. Call AAA 9,828,100
Refunding, 5.000%, 2/01/23
7,935 City of Los Angeles, California, Certificates of Participation 4/12 at 100.00 AAA 7,982,689
(Real Property Acquisition Program), Series 2002, 5.300%, 4/01/32
17,750 City of Los Angeles Department of Water and Power, 7/11 at 100.00 AAA 17,364,293
California, Waterworks Revenue Bonds, Series 2001A
Refunding, 5.125%, 7/01/41
7,500 Northern California Power Agency, Hydroelectric Project 7/08 at 101.00 AAA 7,462,125
Number One Revenue Bonds, 1998 Refunding Series A,
5.200%, 7/01/32
2,320 Sacramento Municipal Utility District, California, Electric 8/11 at 100.00 AAA 2,408,810
Revenue Bonds, Series 2001P, 5.250%, 8/15/18
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 2.1%
9,000 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA 8,947,530
Revenue Bonds, Senior Series 2001A, 5.250%, 6/15/41
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.3%
10,000 JEA, Florida, Water and Sewer System Revenue Bonds, 4/07 at 100.00 AAA 10,043,500
Series 2002A, 5.500%, 10/01/41
8,155 Lee County, Florida, Solid Waste System Revenue Bonds, 10/11 at 100.00 Aaa 8,661,589
Series 2001 Refunding, 5.625%, 10/01/13
3,370 Osceola County School Board, Florida, Certificates of 6/12 at 101.00 Aaa 3,389,681
Participation, Series 2002A, 5.125%, 6/01/20
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 24.8%
17,685 Village of Bolingbrook, Illinois, General Obligation Bonds, 1/12 at 100.00 AAA 17,572,347
Series 2002A, 5.375%, 1/01/38
1,000 City of Chicago, Illinois, General Obligation Bonds, Project and 7/10 at 101.00 AAA 1,008,870
Refunding Series 2000C, 5.500%, 1/01/40
5,000 City of Chicago, Illinois, General Obligation Bonds, Project and 1/11 at 101.00 AAA 5,050,000
Refunding Series 2001A, 5.500%, 1/01/38
6,000 City of Chicago, Illinois, Chicago Midway Airport, Revenue 1/09 at 101.00 AAA 5,684,220
Bonds, Series 1998B, 5.000%, 1/01/28
City of Chicago, Illinois, Chicago-O'Hare International Airport,
Second Lien Passenger Facility Charge Revenue Bonds, Series
2001C:
4,250 5.500%, 1/01/16 (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,347,240
4,485 5.500%, 1/01/17 (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,563,712
4,730 5.500%, 1/01/18 (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,791,537
2,930 5.500%, 1/01/19 (Alternative Minimum Tax) 1/11 at 101.00 AAA 2,959,300
3,000 City of Chicago, Illinois, Chicago-O'Hare International Airport, 1/12 at 100.00 AAA 3,127,380
General Airport Third Lien Revenue Refunding Bonds,
Series 2002A, 5.750%, 1/01/17
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 12,765 City of Chicago, Illinois, Skyway Toll Bridge Revenue Bonds, 1/07 at 102.00 AAA $ 13,053,234
Series 1996, 5.500%, 1/01/23
4,000 Town of Cicero, Cook County, Illinois, General Obligation 12/12 at 101.00 AAA 3,919,120
Corporate Purpose Bonds, Series 2002, 5.000%, 12/01/21
29,740 Illinois Educational Facilities Authority, Revenue Bonds (The 7/08 at 101.00 AAA 28,375,529
University of Chicago), Series 1998A, 5.125%, 7/01/38
2,700 The Board of Trustees of the University of Illinois, Certificates 8/11 at 100.00 AAA 2,653,749
of Participation (Utility Infrastructure Projects), Series 2001A,
5.000%, 8/15/20
Will County School District No. 086, Joliet, Illinois, General
Obligation Bonds, Series 2002:
4,160 0.000%, 11/01/18 No Opt. Call AAA 1,699,152
4,460 0.000%, 11/01/19 No Opt. Call AAA 1,705,013
4,775 0.000%, 11/01/20 No Opt. Call AAA 1,706,203
6,935 0.000%, 11/01/21 No Opt. Call AAA 2,326,276
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 7.8%
25,000 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 24,491,000
Revenue Refunding Bonds (Waterworks Project), Series 2002A,
5.250%, 7/01/33
New Albany-Floyd County School Building Corporation, Indiana,
First Mortgage Bonds, Series 2002:
1,500 5.750%, 7/15/17 7/12 at 100.00 AAA 1,614,450
3,810 5.750%, 7/15/20 7/12 at 100.00 AAA 4,050,068
Northern Wells Community School Building Corporation, Wells
County, Indiana, First Mortgage Bonds, Series 2001:
420 5.250%, 1/15/19 7/12 at 100.00 AAA 424,767
430 5.250%, 7/15/19 7/12 at 100.00 AAA 434,881
1,675 5.400%, 7/15/23 7/12 at 100.00 AAA 1,697,026
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.7%
3,085 City of New Orleans, Louisiana, General Obligation Bonds, 9/12 at 100.00 AAA 3,099,530
Series 2002 Refunding, 5.125%, 9/01/21
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 3.8%
16,360 City of Baltimore, Maryland, Water Projects and Refunding 7/12 at 100.00 AAA 15,892,595
Revenue Bonds, 2002 Series A, 5.125%, 7/01/42 (WI,
settling 5/07/02)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.8%
Massachusetts Development Finance Authority, Revenue Bonds
(WGBH Educational Foundation), Series 2002A:
17,430 5.750%, 1/01/42 No Opt. Call AAA 19,062,842
1,000 5.375%, 1/01/42 1/12 at 101.00 AAA 998,130
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.1%
8,735 City of St. Louis, Missouri, Airport Revenue Bonds (Airport 7/11 at 100.00 AAA 8,663,460
Development Program), Series 2001A, 5.250%, 7/01/31
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.4%
10,000 Truckee Meadows Water Authority, Nevada, Water Revenue 7/11 at 100.00 AAA 9,866,200
Bonds, Series 2001A, 5.250%, 7/01/34
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 2.3%
10,000 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 AAA 9,603,600
Purpose Revenue Bonds, Series 2001A, 5.000%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.5%
4,500 Allegheny County, Pennsylvania, Airport Revenue Refunding No Opt. Call AAA 4,894,560
Bonds (Pittsburgh International Airport), Series 1997A,
5.750%, 1/01/13 (Alternative Minimum Tax)
1,250 Pittsburgh and Allegheny County Public Auditorium Authority, 8/09 at 101.00 AAA 1,210,588
Pennsylvania, Hotel Room Excise Tax Revenue Bonds,
Series 1999, 5.125%, 2/01/35
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.8%
3,185 Puerto Rico Public Building Authority, Revenue Refunding No Opt. Call AAA 3,435,054
Bonds, Series L, Guaranteed by the Commonwealth of
Puerto Rico, 5.500%, 7/01/21
39
Nuveen Insured Dividend Advantage Municipal Fund (NVG) (continued)
Portfolio of Investments April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 3.6%
$ 15,195 Tennessee School Bond Authority, Higher Educational Facilities 5/12 at 100.00 AAA $ 15,131,181
Bonds (Second Program), Series 2002A, 5.250%, 5/01/32
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 15.6%
3,500 Cities of Dallas and Fort Worth, Texas, Dallas-Fort Worth 11/11 at 100.00 AAA 3,738,945
International Airport, Joint Revenue Refunding and Improvement
Bonds, Series 2001A, 5.750%, 11/01/13 (Alternative Minimum Tax)
5,000 Dallas County Independent School District, Texas, General 2/12 at 100.00 AAA 4,901,150
Obligation Bonds, Series 2002 Refunding, 5.000%, 2/15/21
10,000 Gainesville Hospital District, Texas, General Obligation Limited 8/11 at 100.00 AAA 9,892,900
Tax Bonds, Series 2002, 5.375%, 8/15/32
3,645 Galveston, Texas, General Obligation Bonds, Series 2001A No Opt. Call AAA 3,661,876
Refunding, 5.250%, 5/01/21
20,000 Houston Area Water Corporation, Texas, Contract Revenue 3/12 at 100.00 AAA 19,222,000
Bonds (Northeast Water Purification Project), Series 2002,
5.125%, 3/01/32 (WI, settling 5/15/02)
Texas Public Finance Authority, Revenue Financing System Bonds
(Texas Southern University), Series 2002:
3,520 5.125%, 11/01/20 5/12 at 100.00 Aaa 3,515,811
3,520 5.125%, 11/01/21 5/12 at 100.00 Aaa 3,494,269
11,665 Texas Student Housing Authority, Student Housing Revenue 1/12 at 102.00 Aaa 11,819,561
Bonds (Austin Project), Senior Series 2001A, 5.500%, 1/01/33
5,000 Texas Water Development Board, Senior Lien Revenue Bonds 1/10 at 100.00 AAA 5,112,450
(State Revolving Fund), Series 1999B, 5.250%, 7/15/17
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 11.0%
7,675 Energy Northwest, Washington, Project No. 1 Refunding 7/12 at 100.00 AAA 8,156,760
Electric Revenue Bonds, Series 2002-A, 5.500%, 7/01/15
6,600 Energy Northwest, Washington, Columbia Generation Station 7/12 at 100.00 AAA 6,745,464
Electric Revenue Refunding Bonds, Series 2002B, 5.350%, 7/01/18
17,630 Washington Healthcare Facilities Authority, Revenue Bonds 8/13 at 102.00 AAA 16,755,905
(Harrison Memorial Hospital), Series 1998, 5.000%, 8/15/28
10,000 Washington Healthcare Facilities Authority, Revenue Bonds 10/11 at 100.00 Aaa 9,630,700
(Children's Hospital and Regional Medical Center), Series 2001,
5.125%, 10/01/31
5,170 Whitman County School District, Washington, General 6/12 at 100.00 Aaa 5,068,616
Obligation Bonds, Series 2002, 5.000%, 12/01/20 (WI,
settling 5/15/02)
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.9%
11,950 State of Wisconsin, Transportation Revenue Bonds, Series 7/12 at 100.00 AAA 12,120,406
2002-1 Refunding, 5.125%, 7/01/18 (WI, settling 5/07/02)
------------------------------------------------------------------------------------------------------------------------------------
$ 486,515 Total Investments (cost $463,997,364) - 112.4% 471,923,310
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 20.3%
6,000 Hillsborough County Industrial Development Authority, Florida, VMIG-1 6,000,000
Pollution Control Revenue Bonds (Tampa Electric Company),
Refunding Series 1992, Variable Rate Demand Bonds,
2.200%, 5/15/18+
10,400 Indiana Educational Facilities Authority, Educational Facilities VMIG-1 10,400,000
Revenue Bonds (DePauw University Project), Series 2002,
Variable Rate Demand Obligations, 1.650%, 7/01/32+
8,615 Iowa Higher Educational Loan Authority, Revenue Bonds A-1+ 8,615,000
(Loras College Project), Series 2000, Variable Rate Demand
Bonds, 1.650%, 11/01/30+
2,400 Iowa Higher Educational Loan Authority, Private College A-1+ 2,400,000
Facility Revenue Bonds (Loras College), Series 2002, Variable
Rate Demand Bonds, 1.650%, 11/01/32+
14,125 City of Jacksonville, Florida, Pollution Control Revenue Bonds VMIG-1 14,125,000
(Florida Power and Light Company Project), Series 1995,
Variable Rate Demand Bonds, 1.800%, 5/01/29+
10,000 Massachusetts Health and Educational Facilities Authority, VMIG-1 10,000,000
Revenue Bonds (Capital Asset Program), Series D, Variable
Rate Demand Bonds, 1.650%, 1/01/35+
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (continued)
$ 3,415 Missouri Health and Educational Facilities Authority, Health A-1+ $ 3,415,000
Facilities Revenue Bonds (St. Francis Medical Center),
Series 1996A, Variable Rate Demand Bonds, 1.650%, 6/01/26+
5,620 Multnomah County, Oregon, Higher Educational Revenue VMIG-1 5,620,000
Bonds (Concordia University of Portland Project), Series 1999,
Variable Rate Demand Bonds, 1.700%, 12/01/29+
4,300 City of Phoenix Industrial Development Authority, Arizona, A-1+ 4,300,000
Revenue Bonds (Valley of the Sun YMCA Project), Series 2001,
Variable Rate Demand Bonds, 1.700%, 1/01/31+
6,500 St. Joseph County, Indiana, Educational Facilities Revenue VMIG-1 6,500,000
Bonds (Notre Dame Du Lac Project), Series 2002, Variable Rate
Demand Bonds, 1.650%, 3/01/37+
2,500 St. Paul Port Authority, Minnesota, District Cooling Revenue A-1+ 2,500,000
Bonds, Series 2002-2R, Variable Rate Demand Bonds,
1.850%, 3/01/22+
11,150 Wisconsin Health and Educational Facilities Authority, A-1+ 11,150,000
Revenue Bonds (Gunderson Lutheran), Series 2000A, Variable
Rate Demand Bonds, 1.700%, 12/01/15+
------------------------------------------------------------------------------------------------------------------------------------
$ 85,025 Total Short-Term Investments (cost $85,025,000) 85,025,000
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (32.7)% (137,371,801)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $419,576,509
====================================================================================================================
All of the bonds in the portfolio, excluding temporary
investments in short-term securities, are either covered by
Original Issue Insurance, Secondary Market Insurance or
Portfolio Insurance, or are backed by an escrow or trust
containing sufficient U.S. Government or U.S. Government
agency securities, any of which ensure the timely payment of
principal and interest.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that currently in
effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
41
Statement of
Assets and Liabilities April 30, 2002 (Unaudited)
INSURED
INSURED INSURED PREMIER INSURED DIVIDEND
QUALITY OPPORTUNITY INSURED INCOME PREMIUM INCOME 2 ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal securities,
at market value $892,876,289 $1,892,381,291 $441,112,020 $748,001,108 $471,923,310
Temporary investments in short-term securities,
at amortized cost, which approximates market value 14,300,000 40,700,000 -- 15,300,000 85,025,000
Cash 7,588,337 -- 922,592 -- --
Receivables:
Interest 13,025,616 30,170,330 7,980,993 13,551,361 4,487,535
Investments sold 14,238,192 9,478,352 9,587,291 14,800,412 --
Other assets 20,153 57,142 17,358 34,717 --
------------------------------------------------------------------------------------------------------------------------------------
Total assets 942,048,587 1,972,787,115 459,620,254 791,687,598 561,435,845
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 11,178,755 -- 10,803,926 79,488,058
Payable for investments purchased 40,747,809 39,897,055 5,224,774 -- 61,424,254
Accrued expenses:
Management fees 458,556 957,713 235,231 398,450 109,562
Organization and offering cost -- -- -- -- 812,500
Other 353,785 668,601 185,908 430,195 24,962
Preferred share dividends payable 54,481 129,800 26,963 49,100 --
Common share dividends payable 2,876,080 6,201,158 1,513,783 2,551,894 --
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 44,490,711 59,033,082 7,186,659 14,233,565 141,859,336
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value $318,000,000 $ 680,000,000 $161,000,000 $268,900,000 $ --
====================================================================================================================================
Net assets applicable to Common shares $579,557,876 $1,233,754,033 $291,433,595 $508,554,033 $419,576,509
====================================================================================================================================
Common shares outstanding 37,843,166 81,060,946 19,283,820 37,253,959 28,707,000
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common
shares, divided by Common shares
outstanding) $ $ 15.31 $ 15.22 $ 15.11 $ 13.65 $ 14.62
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 378,432 $ 810,609 $ 192,838 $ 372,540 $ 287,070
Paid-in surplus 527,203,913 1,127,616,210 267,263,063 490,309,287 410,139,705
Balance of undistributed net investment income 5,526,001 12,502,713 2,471,590 3,773,036 1,223,788
Accumulated net realized gain (loss) from
investment transactions 3,852,961 7,473,327 (561,686) (25,351,892) --
Net unrealized appreciation of investments 42,596,569 85,351,174 22,067,790 39,451,062 7,925,946
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $579,557,876 $1,233,754,033 $291,433,595 $508,554,033 $419,576,509
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 Unlimited Unlimited
Preferred 1,000,000 1,000,000 1,000,000 Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
42
Statement of
Operations Six Months Ended April 30, 2002 (Unaudited)
INSURED
INSURED INSURED PREMIER INSURED DIVIDEND
QUALITY OPPORTUNITY INSURED INCOME PREMIUM INCOME 2 ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG)*
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 24,807,009 $ 55,230,233 $12,930,878 $ 21,562,370 $1,379,540
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,786,363 5,825,317 1,428,828 2,416,272 247,251
Preferred shares - auction fees 394,232 843,013 199,596 333,362 --
Preferred shares - dividend disbursing agent fees 24,795 34,712 14,876 24,795 --
Shareholders' servicing agent fees and expenses 47,277 81,821 18,886 27,785 690
Custodian's fees and expenses 148,864 264,157 65,065 98,520 7,483
Directors'/Trustees' fees and expenses 3,736 8,096 1,926 3,236 592
Professional fees 16,183 20,370 11,746 11,208 1,774
Shareholders' reports - printing and mailing expenses 40,066 94,220 26,060 40,168 13,423
Stock exchange listing fees 16,239 33,733 12,031 16,140 --
Investor relations expense 64,769 134,614 32,423 55,857 --
Portfolio insurance expense 32,728 83,756 -- 11,307 986
Other expenses 25,619 49,159 15,111 20,639 100
Total expenses before custodian fee credit
and expense reimbursement 3,600,871 7,472,968 1,826,548 3,059,289 272,299
Custodian fee credit (56,342) (61,708) (20,092) (17,632) (86)
Expense reimbursement -- -- -- -- (116,461)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 3,544,529 7,411,260 1,806,456 3,041,657 155,752
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 21,262,480 47,818,973 11,124,422 18,520,713 1,223,788
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain from investment transactions 3,880,856 8,479,275 193,595 2,066,590 --
Change in net unrealized appreciation
(depreciation) of investments (22,479,031) (54,250,246) (9,695,991) (14,524,044) 7,925,946
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (18,598,175) (45,770,971) (9,502,396) (12,457,454) 7,925,946
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From undistributed net investment income (2,073,761) (4,469,925) (1,095,022) (1,828,389) --
From accumulated net realized gains from
investment transactions (252,858) (425,567) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (2,326,619) (4,895,492) (1,095,022) (1,828,389) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations $ 337,686 $ (2,847,490) $ 527,004 $ 4,234,870 $9,149,734
====================================================================================================================================
*For the period March 25, 2002 (commencement of operations) through April 30,
2002.
See accompanying notes to financial statements.
43
Statement of
Changes in Net Assets (Unaudited)
INSURED QUALITY (NQI) INSURED OPPORTUNITY (NIO)
------------------------------- ------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/02 10/31/01 4/30/02 10/31/01
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 21,262,480 $ 44,506,740 $ 47,818,973 $ 95,205,068
Net realized gain from investment transactions 3,880,856 8,468,012 8,479,275 16,381,120
Change in net unrealized appreciation
(depreciation) of investments (22,479,031) 36,864,158 (54,250,246) 67,267,115
Distributions to Preferred Shareholders:
From undistributed net investment income (2,073,761) (9,939,317) (4,469,925) (20,771,576)
From accumulated net realized gains
from investment transactions (252,858) -- (425,567) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations 337,686 79,899,593 (2,847,490) 158,081,727
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From undistributed net investment income (16,953,636) (32,021,289) (36,603,000) (70,123,691)
From accumulated net realized gains from
investment transactions (824,876) -- (1,454,843) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (17,778,512) (32,021,289) (38,057,843) (70,123,691)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- --
Net proceeds from shares issued to shareholders
due to reinvestment of distributions -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common
shares from capital share transactions -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares (17,440,826) 47,878,304 (40,905,333) 87,958,036
Net assets applicable to Common shares at the
beginning of period 596,998,702 549,120,398 1,274,659,366 1,186,701,330
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at
the end of period $579,557,876 $596,998,702 $1,233,754,033 $1,274,659,366
====================================================================================================================================
Balance of undistributed net investment income at
the end of period $ 5,526,001 $ 2,703,243 $ 12,502,713 $ 5,025,893
====================================================================================================================================
See accompanying notes to financial statements.
44
PREMIER INSURED INSURED PREMIUM INSURED DIVIDEND
INCOME (NIF) INCOME 2 (NPX) ADVANTAGE (NVG)
------------------------- ----------------------- ---------------
FOR THE
PERIOD
3/25/02
(COMMENCEMENT
SIX MONTHS YEAR SIX MONTHS YEAR OF OPERATIONS)
ENDED ENDED ENDED ENDED THOUGH
4/30/02 10/31/01 4/30/02 10/31/01 4/30/02)
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 11,124,422 $ 22,824,656 $ 18,520,713 $ 37,492,888 $ 1,223,788
Net realized gain from investment transactions 193,595 5,002,925 2,066,590 3,787,085 --
Change in net unrealized appreciation (depreciation)
of investments (9,695,991) 11,314,431 (14,524,044) 28,376,973 7,925,946
Distributions to Preferred Shareholders:
From undistributed net investment income (1,095,022) (5,000,703) (1,828,389) (8,429,610) --
From accumulated net realized gains
from investment transactions -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations 527,004 34,141,309 4,234,870 61,227,336 9,149,734
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From undistributed net investment income (8,896,543) (17,031,612) (14,977,084) (27,940,467) --
From accumulated net realized gains from
investment transactions -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common
shares from distributions to Common shareholders (8,896,543) (17,031,612) (14,977,084) (27,940,467) --
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- -- 410,326,500
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 148,991 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from capital share transactions 148,991 -- -- -- 410,326,500
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares (8,220,548) 17,109,697 (10,742,214) 33,286,869 419,476,234
Net assets applicable to Common shares at
the beginning of period 299,654,143 282,544,446 519,296,247 486,009,378 100,275
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at
the end of period $291,433,595 $299,654,143 $508,554,033 $519,296,247 $419,576,509
====================================================================================================================================
Balance of undistributed net investment income at
the end of period $ 2,471,590 $ 1,315,694 $ 3,773,036 $ 1,953,338 $ 1,223,788
====================================================================================================================================
See accompanying notes to financial statements.
45
Notes to
Financial Statements (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The National Funds (the "Funds") covered in this report are Nuveen Insured
Quality Municipal Fund, Inc. (NQI), Nuveen Insured Municipal Opportunity Fund,
Inc. (NIO), Nuveen Premier Insured Municipal Income Fund, Inc. (NIF), Nuveen
Insured Premium Income Municipal Fund 2 (NPX) and Nuveen Insured Dividend
Advantage Municipal Fund (NVG). Insured Quality (NQI), Insured Opportunity
(NIO), Premier Insured Income (NIF) and Insured Premium Income 2 (NPX) are
traded on the New York Stock Exchange while Insured Dividend Advantage (NVG) is
traded on the American Stock Exchange. Prior to the commencement of operations
of Insured Dividend Advantage (NVG), the Fund had no operations other than those
related to organizational matters, the initial capital contribution of $100,275
by Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of The John
Nuveen Company, and the recording of the organization expenses ($11,500) and its
reimbursement by Nuveen Investments, also a wholly owned subsidiary of The John
Nuveen Company.
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities. The Funds are registered under
the Investment Company Act of 1940 as closed-end, diversified management
investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. If it is determined that market prices for a security are
unavailable or inappropriate, the Board of Directors/Trustees of the Funds may
establish a fair value for the security. Temporary investments in securities
that have variable rate and demand features qualifying them as short-term
securities are valued at amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At
April 30, 2002, Insured Quality (NQI), Insured Opportunity (NIO) and Insured
Dividend Advantage (NVG) had outstanding when-issued purchase commitments of
$35,899,561, $39,897,055 and $61,424,254, respectively. There were no such
outstanding purchase commitments in either of the other Funds.
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
for financial reporting purposes.
46
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. 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, to retain such tax-exempt status when distributed to shareholders of the
Funds.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend. Generally,
payment is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount 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 accounting principles generally
accepted in the United States. Accordingly, temporary over-distributions as a
result of these differences may occur and will be classified as either
distributions in excess of net investment income, distributions in excess of net
realized gains and/or distributions in excess of net ordinary taxable income
from investment transactions, where applicable.
Preferred Shares
The following Funds have issued and outstanding $25,000 stated value Preferred
shares. Each Fund's Preferred shares are issued in more than one Series. The
dividend rate on each Series may change every seven days, as set by the auction
agent. The number of Preferred shares outstanding, by Series and in total, for
each Fund is as follows:
PREMIER INSURED
INSURED INSURED INSURED PREMIUM
QUALITY OPPORTUNITY INCOME INCOME 2
(NQI) (NIO) (NIF) (NPX)
----------------------------------------------------------------------------------------------------------
Number of shares:
Series M 2,600 4,000 -- 2,080
Series T 2,600 4,000 -- 2,200
Series W 2,600 4,000 840 2,080
Series W2 -- 3,200 -- --
Series Th 2,320 4,000 2,800 2,200
Series Th2 -- 4,000 -- --
Series F 2,600 4,000 2,800 2,196
----------------------------------------------------------------------------------------------------------
Total 12,720 27,200 6,440 10,756
==========================================================================================================
Effective May 17, 2002, Insured Dividend Advantage (NVG) issued 3,160 Series M,
3,080 Series T and 3,080 Series Th, $25,000 stated value Preferred shares.
Insurance
The Funds invest in municipal securities which are either covered by insurance
or are backed by an escrow or trust account containing sufficient U.S.
Government or U.S. Government agency securities, both of which ensure the timely
payment of principal and interest. 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' shares. Original Issue Insurance and Secondary Market
Insurance remain in effect as long as the municipal securities covered thereby
remain outstanding and the insurer remains in business, regardless of whether
the Funds ultimately dispose of such municipal securities. Consequently, the
market value of the municipal securities covered by Original Issue Insurance or
Secondary Market Insurance may reflect value attributable to the insurance.
Portfolio Insurance is effective only while the municipal securities are held by
the Funds. Accordingly, neither the prices used in determining the market value
of the underlying municipal securities nor the Common share net asset value of
the Funds' shares 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.
47
Notes to
Financial Statements (Unaudited) (continued)
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the period ended April 30, 2002.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Offering Costs
Nuveen Investments has agreed to pay all offering costs (other than the sales
load) that exceed $.03 per Common share for Insured Dividend Advantage (NVG).
Insured Dividend Advantage's (NVG) share of offering costs ($801,000) was
recorded as a reduction of the proceeds from the sale of Common shares.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States 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.
Change in Accounting Policy
As required, effective November 1, 2001, the Funds have adopted the provisions
of the new AICPA Audit and Accounting Guide for Investment Companies and began
accreting taxable market discount on debt securities. Prior to November 1, 2001,
the Funds did not accrete taxable market discount on debt securities until they
were sold. The cumulative effect of this accounting change had no impact on the
total net assets applicable to Common shares or the Common share net asset
values of the Funds, but resulted in an increase in the cost of securities and a
corresponding decrease in net unrealized appreciation based on securities held
by the following Funds on November 1, 2001, as follows:
PREMIER INSURED
INSURED INSURED INSURED PREMIUM
QUALITY OPPORTUNITY INCOME INCOME 2
(NQI) (NIO) (NIF) (NPX)
---------------------------------------------------------
$587,906 $731,003 $23,039 $104,458
---------------------------------------------------------
The effect of this change for the six months ended April 30, 2002, was to
increase investment income with a corresponding decrease in net unrealized
appreciation as follows:
PREMIER INSURED
INSURED INSURED INSURED PREMIUM
QUALITY OPPORTUNITY INCOME INCOME 2
(NQI) (NIO) (NIF) (NPX)
----------------------------------------------------------
$57,759 $123,309 $9,277 $17,879
----------------------------------------------------------
The Statement of Changes in Net Assets and Financial Highlights for the prior
periods have not been restated to reflect this change in presentation.
48
Classification and Measurement of Redeemable Securities
Effective November 1, 2001, the Funds have adopted the classification
requirement of EITF D-98, Classification and Measurement of Redeemable
Securities. EITFD-98 requires that Preferred shares, at liquidation value, be
presented separately in the Statement of Assets and Liabilities. Accordingly,
certain reclassifications have been made to the financial statements and
financial highlights for all prior periods presented. The adoption of EITF D-98
had no impact on the Funds' Common share net asset values.
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
INSURED INSURED PREMIUM INSURED
QUALITY (NQI) OPPORTUNITY (NIO) INCOME (NIF)
-------------------- --------------------- ------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/02 10/31/01 4/30/02 10/31/01 4/30/02 10/31/01
----------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- -- --
Shares issued to shareholders
due to reinvestment
of distributions -- -- -- -- 9,660 --
----------------------------------------------------------------------------------------------------------
-- -- -- -- 9,660 --
==========================================================================================================
Preferred shares sold -- -- -- -- -- --
==========================================================================================================
INSURED INSURED
PREMIUM INCOME 2 (NPX) DIVIDEND ADVANTAGE (NVG)
---------------------- ------------------------
FOR THE
PERIOD
3/25/02
(COMMENCEMENT
SIX MONTHS YEAR OF OPERATIONS)
ENDED ENDED THROUGH
4/30/02 10/31/01 4/30/02
----------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- 28,700,000
Shares issued to shareholders
due to reinvestment of distributions -- -- --
----------------------------------------------------------------------------------------------------------
-- -- 28,700,000
==========================================================================================================
Preferred shares sold -- -- --
==========================================================================================================
Effective May 7, 2002, Insured Dividend Advantage (NVG) issued an additional
1,100,000 Common shares.
Effective May 17, 2002, Insured Dividend Advantage
(NVG) issued 9,320 Preferred shares.
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The following Funds declared Common share dividend distributions from their
tax-exempt net investment income which were paid on June 3, 2002, to
shareholders of record on May 15, 2002, as follows:
PREMIER INSURED
INSURED INSURED INSURED PREMIUM
QUALITY OPPORTUNITY INCOME INCOME 2
(NQI) (NIO) (NIF) (NPX)
----------------------------------------------------------------------------------------------------------
Dividend per share $.0760 $.0765 $.0785 $.0685
==========================================================================================================
Insured Dividend Advantage (NVG)declared a Common share dividend distribution
from its tax-exempt net investment income of $.0775 per share which was paid on
June 3, 2002, to shareholders of record on May 19, 2002.
49
Notes to
Financial Statements (Unaudited) (continued)
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term securities for the six months ended April 30, 2002,
were as follows:
PREMIER INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG)*
----------------------------------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $308,973,450 $497,035,084 $100,146,562 $ 92,385,208 $463,992,691
Short-term securities 138,795,000 105,935,000 7,000,000 33,420,000 116,125,000
Sales and maturities:
Long-term municipal securities 302,723,186 528,728,066 101,793,939 109,487,413 --
Short-term securities 124,495,000 65,235,000 13,625,000 18,120,000 31,100,000
==========================================================================================================
* For the period March 25, 2002 (commencement of operations) through April 30,
2002.
At April 30, 2002, the cost of investments owned for federal income tax
purposes were as follows:
PREMIER INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG)
----------------------------------------------------------------------------------------------------------
$863,961,126 $1,848,105,548 $419,037,704 $723,757,709 $549,022,364
==========================================================================================================
At October 31, 2001, the Funds' last fiscal 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:
PREMIER INSURED
INSURED PREMIUM
INCOME INCOME 2
(NIF) (NPX)
-------------------------------------------------------------------
Expiration year:
2003 $ -- $ 9,979,714
2004 -- 2,080,786
2005 -- --
2006 -- --
2007 -- --
2008 755,281 15,327,981
-------------------------------------------------------------------
Total $755,281 $27,388,481
===================================================================
50
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at April 30, 2002, were as follows:
PREMIER INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
appreciation $44,402,386 $90,117,998 $23,136,756 $40,491,765 $7,925,946
depreciation (1,187,223) (5,142,255) (1,062,440) (948,366) --
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation $43,215,163 $84,975,743 $22,074,316 $39,543,399 $7,925,946
==========================================================================================================
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' (excluding Insured Dividend Advantage (NVG)) investment
management agreements with Nuveen Advisory Corp. (the "Adviser"), a wholly owned
subsidiary of The John Nuveen Company, each Fund pays an annual management fee,
payable monthly, at the rates set forth below, which are based upon the average
daily net assets (including net assets attributable to Preferred shares) of each
Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
---------------------------------------------------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For the next $3 billion .5875 of 1
For net assets over $5 billion .5750 of 1
---------------------------------------------------------------------------------------------------------------------------
Under Insured Dividend Advantage's (NVG) investment management agreement with
the Adviser, the Fund pays an annual management fee, payable monthly, at the
rates set forth below, which are based upon the average daily net assets
(including net assets attributable to Preferred shares) of the Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
---------------------------------------------------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5750 of 1
---------------------------------------------------------------------------------------------------------------------------
The Adviser has agreed to waive part of its management fees or reimburse certain
expenses of Insured Dividend Advantage (NVG) in an amount equal to .30% of the
average daily net assets (including net assets attributable to Preferred shares)
for the period March 25, 2002 (commencement of operations) through March 31,
2007, .25% of the average daily net assets (including net assets attributable to
Preferred shares) for the year ended March 31, 2008, .20% of the average daily
net assets (including net assets attributable to Preferred shares) for the year
ended March 31, 2009, .15% of the average daily net assets (including net assets
attributable to Preferred shares) for the year ended March 31, 2010, .10% of the
average daily net assets (including net assets attributable to Preferred shares)
for the year ended March 31, 2011, and .05% of the average daily net assets
(including net assets attributable to Preferred shares) for the year ended March
31, 2012. The Adviser has not agreed to reimburse Insured Dividend Advantage
(NVG) for any portion of its fees and expenses beyond March 31, 2012.
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 Directors/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
51
Notes to
Financial Statements (Unaudited) (continued)
7. INVESTMENT COMPOSITION
At April 30, 2002, the revenue sources by municipal purpose, expressed as a
percent of total investments, were as follows:
PREMIER INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG)
---------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations 3% 3% 2% 4% 25%
Healthcare 17 12 15 14 7
Housing/Multifamily 8 3 4 10 --
Housing/Single Family 3 11 3 3 --
Tax Obligation/General 11 5 7 9 13
Tax Obligation/Limited 6 12 11 10 7
Transportation 20 16 19 16 18
U.S. Guaranteed 12 12 20 8 --
Utilities 15 11 16 22 10
Water and Sewer 5 14 2 4 20
Other -- 1 1 -- --
---------------------------------------------------------------------------------------------------------------------------
100% 100% 100% 100% 100%
===========================================================================================================================
All of the long-term investments owned by the Funds are either covered by
insurance issued by several private insurers or are backed by an escrow or trust
containing U.S. Government or U.S. Government agency securities, both of which
ensure the timely payment of principal and interest in the event of default.
Such insurance or escrow, however, does not guarantee the market value of the
municipal securities or the value of the Funds' shares.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
52
Financial Highlights (Unaudited)
53
Financial
Highlights (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
---------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
=================================================================================================================================
INSURED QUALITY (NQI)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2002(a) $15.78 $ .56 $ (.50) $(.05) $(.01) $ -- $(.45) $(.02) $ (.47)
2001 14.51 1.18 1.20 (.26) -- 2.12 (.85) -- (.85)
2000 13.95 1.20 .60 (.34) -- 1.46 (.90) -- (.90)
1999 16.02 1.17 (1.91) (.22) (.04) (1.00) (.92) (.13) (1.05)
1998 15.68 1.18 .36 (.25) -- 1.29 (.94) (.01) (.95)
1997 15.50 1.22 .28 (.25) (.02) 1.23 (.98) (.07) (1.05)
INSURED OPPORTUNITY (NIO)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2002(a) 15.72 .59 (.55) (.06) (.01) (.03) (.45) (.02) (.47)
2001 14.64 1.17 1.04 (.26) -- 1.95 (.87) -- (.87)
2000 14.25 1.21 .39 (.33) -- 1.27 (.88) -- (.88)
1999 16.04 1.18 (1.73) (.24) (.01) (.80) (.94) (.04) (.98)
1998 15.78 1.21 .28 (.26) -- 1.23 (.97) -- (.97)
1997 15.54 1.23 .28 (.26) (.01) 1.24 (.98) (.02) (1.00)
PREMIER INSURED INCOME (NIF)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2002(a) 15.55 .58 (.50) (.06) -- .02 (.46) -- (.46)
2001 14.66 1.18 .85 (.26) -- 1.77 (.88) -- (.88)
2000 14.25 1.20 .43 (.33) -- 1.30 (.89) -- (.89)
1999 16.18 1.16 (1.89) (.23) (.01) (.97) (.90) (.04) (.94)
1998 15.84 1.16 .38 (.25) (.01) 1.28 (.92) (.02) (.94)
1997 15.49 1.19 .36 (.26) -- 1.29 (.94) -- (.94)
INSURED PREMIUM INCOME 2 (NPX)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2002(a) 13.94 .50 (.34) (.05) -- .11 (.40) -- (.40)
2001 13.05 1.01 .86 (.23) -- 1.64 (.75) -- (.75)
2000 12.40 .99 .66 (.29) -- 1.36 (.71) -- (.71)
1999 14.10 .97 (1.71) (.23) -- (.97) (.73) -- (.73)
1998 13.60 .95 .53 (.25) -- 1.23 (.73) -- (.73)
1997 13.04 1.00 .54 (.25) -- 1.29 (.73) -- (.73)
INSURED DIVIDEND ADVANTAGE (NVG)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2002(b) 14.33 .04 .28 -- -- .32 -- -- --
=================================================================================================================================
Total Returns
--------------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
==========================================================================================================
INSURED QUALITY (NQI)
----------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2002(a) $ -- $15.31 $15.0500 4.11% .10%
2001 -- 15.78 14.9200 15.53 14.94
2000 -- 14.51 13.6875 10.94 10.86
1999 (.02) 13.95 13.1875 (9.65) (6.77)
1998 -- 16.02 15.6250 6.13 8.43
1997 -- 15.68 15.6250 10.57 8.22
INSURED OPPORTUNITY (NIO)
----------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2002(a) -- 15.22 14.9400 4.62 (.16)
2001 -- 15.72 14.7400 19.84 13.61
2000 -- 14.64 13.0625 5.06 9.25
1999 (.01) 14.25 13.3125 (14.71) (5.33)
1998 -- 16.04 16.6250 12.03 7.99
1997 -- 15.78 15.7500 10.18 8.32
PREMIER INSURED INCOME (NIF)
----------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2002(a) -- 15.11 15.1200 2.22 .24
2001 -- 15.55 15.2500 19.97 12.40
2000 -- 14.66 13.5000 9.92 9.41
1999 (.02) 14.25 13.1250 (17.33) (6.42)
1998 -- 16.18 16.8750 14.06 8.35
1997 -- 15.84 15.6875 12.09 8.56
INSURED PREMIUM INCOME 2 (NPX)
----------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2002(a) -- 13.65 13.4500 .79 .92
2001 -- 13.94 13.7500 29.46 12.85
2000 -- 13.05 11.2500 4.35 11.35
1999 -- 12.40 11.5000 (11.16) (7.21)
1998 -- 14.10 13.6875 16.35 9.28
1997 -- 13.60 12.4375 15.45 10.15
INSURED DIVIDEND ADVANTAGE (NVG)
----------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2002(b) (.03) 14.62 15.0100 .07 2.02
==========================================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
---------------------------- ----------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
============================================================================================================================
INSURED QUALITY (NQI)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2002(a) $ 579,558 1.25%* 7.36%* 1.23%* 7.37%* 34%
2001 596,999 1.24 7.72 1.23 7.74 34
2000 549,120 1.24 8.48 1.23 8.49 24
1999 527,789 1.19 7.67 1.18 7.67 27
1998 603,179 1.13 7.49 1.13 7.49 16
1997 588,362 1.15 7.88 1.15 7.88 8
INSURED OPPORTUNITY (NIO)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2002(a) 1,233,754 1.22* 7.78* 1.21* 7.79* 26
2001 1,274,659 1.21 7.69 1.20 7.70 39
2000 1,186,701 1.20 8.47 1.20 8.48 16
1999 1,155,516 1.16 7.67 1.16 7.67 26
1998 1,292,589 1.13 7.60 1.13 7.60 12
1997 1,261,771 1.15 7.92 1.15 7.92 8
PREMIER INSURED INCOME (NIF)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2002(a) 291,434 1.26* 7.66* 1.25* 7.67* 22
2001 299,654 1.26 7.79 1.24 7.81 34
2000 282,544 1.26 8.37 1.24 8.39 21
1999 274,668 1.19 7.49 1.18 7.50 32
1998 310,466 1.16 7.29 1.16 7.29 10
1997 303,173 1.17 7.61 1.17 7.61 4
INSURED PREMIUM INCOME 2 (NPX)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2002(a) 508,554 1.21* 7.33* 1.21* 7.34* 12
2001 519,296 1.22 7.39 1.20 7.41 27
2000 486,009 1.22 7.87 1.20 7.88 55
1999 461,955 1.21 7.11 1.21 7.11 35
1998 524,962 1.20 6.89 1.20 6.89 31
1997 506,313 1.23 7.55 1.23 7.55 37
INSURED DIVIDEND ADVANTAGE (NVG)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2002(b) 419,577 .70* 2.83* .40* 3.13* --
============================================================================================================================
Municipal Auction Rate Cumulative
Preferred Stock at End of Period
---------------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
========================================================================
INSURED QUALITY (NQI)
------------------------------------------------------------------------
Year Ended 10/31:
2002(a) $318,000 $25,000 $70,563
2001 318,000 25,000 71,934
2000 318,000 25,000 68,170
1999 318,000 25,000 66,493
1998 260,000 25,000 82,998
1997 260,000 25,000 81,573
INSURED OPPORTUNITY (NIO)
------------------------------------------------------------------------
Year Ended 10/31:
2002(a) 680,000 25,000 70,359
2001 680,000 25,000 71,862
2000 680,000 25,000 68,629
1999 680,000 25,000 67,482
1998 600,000 25,000 78,858
1997 600,000 25,000 77,574
PREMIER INSURED INCOME (NIF)
------------------------------------------------------------------------
Year Ended 10/31:
2002(a) 161,000 25,000 70,254
2001 161,000 25,000 71,530
2000 161,000 25,000 68,873
1999 161,000 25,000 67,650
1998 140,000 25,000 80,440
1997 140,000 25,000 79,138
INSURED PREMIUM INCOME 2 (NPX)
------------------------------------------------------------------------
Year Ended 10/31:
2002(a) 268,900 25,000 72,281
2001 268,900 25,000 73,280
2000 268,900 25,000 70,185
1999 268,900 25,000 67,949
1998 268,900 25,000 73,806
1997 268,900 25,000 72,073
INSURED DIVIDEND ADVANTAGE (NVG)
------------------------------------------------------------------------
Year Ended 10/31:
2002(b) -- -- --
========================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes
in stock price per share. Total Return on Common Share Net Asset Value is the
combination of reinvested dividend income, reinvested capital gains
distributions, if any, and changes in Common share net asset value per share.
Total returns are not annualized.
***After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares, where applicable.
(a)For the six months ended April 30, 2002.
(b)For the period March 25, 2002 (commencement of operations) through April 30,
2002.
See accompanying notes to financial statements.
55
Build Your Wealth
Automatically
Sidebar text: Nuveen makes reinvesting easy. A phone call is all it takes to set
up your reinvestment account.
NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Fund allows you
to conveniently reinvest dividends and/or capital gains distributions in
additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient,
each month you'll receive a statement showing your total dividends and
distributions, the date of investment, the shares acquired and the price per
share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either
be purchased on the open market or newly issued by the Fund. If the shares are
trading at or above net asset value at the time of valuation, the Fund will
issue new shares at the then-current market price. If the shares are trading at
less than net asset value, shares for your account will be purchased on the open
market. Dividends and distributions received to purchase shares in the open
market will normally be invested shortly after the dividend payment date. No
interest will be paid on dividends and distributions awaiting reinvestment.
Because the market price of 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.
FLEXIBILITY
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.
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.
56
Fund
Information
BOARD OF DIRECTORS
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT
AND SHAREHOLDER SERVICES
JPMorgan Chase Bank
P.O. Box 660086
Dallas, TX 75266-0086
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the six-month period ended April 30, 2002. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
57
Serving Investors
for Generations
Photo of: John Nuveen, Sr.
For over a century, generations of Americans have relied on Nuveen Investments
to help them grow and keep the money they've earned. Financial advisors,
investors and their families have associated Nuveen Investments with quality,
expertise and dependability since 1898. That is why financial advisors have
entrusted the assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen Investments' products and services can help
you preserve your financial security, talk with your financial advisor, or call
us at (800) 257-8787 for more information, including a prospectus where
applicable. Please read that information carefully before you invest.
Logo: NUVEEN Investments
Nuveen Investments o 333 West Wacker Drive
Chicago, IL 60606 o www.nuveen.com FSA-4-4-02