UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-06379
---------------------
Nuveen Insured Municipal Opportunity Fund, Inc.
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: October 31
------------------
Date of reporting period: April 30, 2007
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
--------------------------------
SEMIANNUAL REPORT April 30, 2007
--------------------------------
Nuveen Investments
Municipal Closed-End Funds
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
NUVEEN INSURED
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NVG
NUVEEN INSURED
TAX-FREE ADVANTAGE
MUNICIPAL FUND
NEA
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DEPENDABLE,
TAX-FREE INCOME BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
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NUVEEN
INVESTMENTS
Chairman's
LETTER TO SHAREHOLDERS
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Once again, I am pleased to report that over the six-month period covered
by this report your Fund continued to provide you with attractive monthly
tax-free income. For more details about the management strategy and
performance of your Fund, please read the Portfolio Manager's Comments,
the Dividend and Share Price Information, and the Performance Overview
sections of this report.
For some time, I've used these letters to remind you that municipal bonds
can be an important building block in a well-balanced investment
portfolio. In addition to providing attractive tax-free monthly income, a
municipal bond investment like your Fund may help you achieve and benefit
from greater portfolio diversification. Portfolio diversification is a
recognized way to try to reduce some of the risk that comes with
investing. For more information about this important investment strategy,
I encourage you to contact your personal financial advisor.
"IN ADDITION TO PROVIDING ATTRACTIVE TAX-FREE MONTHLY INCOME, A MUNICIPAL BOND
INVESTMENT LIKE YOUR FUND MAY HELP YOU ACHIEVE AND BENEFIT FROM GREATER
PORTFOLIO DIVERSIFICATION."
We also are pleased to be able to offer you a choice concerning how you
receive your shareholder reports and other Fund information. As an
alternative to mailed copies, you can sign up to receive future Fund
reports and other Fund information by e-mail and the internet. The inside
front cover of this report contains information on how you can sign up.
We are grateful that you have chosen us as a partner as you pursue your
financial goals, and we look forward to continuing to earn your trust in
the months and years ahead. At Nuveen Investments, our mission continues
to be to assist you and your financial advisor by offering investment
services and products that can help you to secure your financial
objectives.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
CHAIRMAN OF THE BOARD
June 15, 2007
Nuveen Investments Municipal Closed-End Funds
NQI, NIO, NIF, NPX, NVG, NEA
Portfolio Manager's
COMMENTS
PORTFOLIO MANAGER PAUL BRENNAN REVIEWS KEY INVESTMENT STRATEGIES AND THE
SIX-MONTH PERFORMANCE OF THESE SIX INSURED FUNDS. WITH ALMOST 18 YEARS OF
INVESTMENT EXPERIENCE, INCLUDING 16 YEARS AT NUVEEN, PAUL ASSUMED PORTFOLIO
MANAGEMENT RESPONSIBILITY FOR NQI, NIO, NIF, NPX, NVG, AND NEA IN JULY 2006.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE SIX-MONTH
REPORTING PERIOD ENDED APRIL 30, 2007?
During this six-month period, we continued to see a further flattening of the
municipal bond yield curve. In this environment, where the slope of the yield
curve remained a dominant market factor, we continued to emphasize a disciplined
approach to duration 1 management and yield curve positioning. As part of this
approach, our purchases for the Funds' portfolios focused mainly on attractively
priced bonds with maturities of 25 years and longer. We believed that bonds in
this part of the yield curve generally offered more attractive yields, better
value, and reward opportunities more commensurate with their risk levels.
Our duration management strategies during this period also included the use of
inverse floating rate trusts, 2 a type of derivative financial instrument, in
all six of these Funds. The inverse floaters had the dual benefit of increasing
the Funds' distributable income and bringing their durations closer to our
preferred strategic target. Since late 2004, we have also used forward swaps and
futures contracts (additional types of derivative instruments) as duration
management tools in Funds where we believed this would support our overall
investment performance strategies. The goal of this strategy is to help us
manage the Funds' net asset value (NAV) volatility without having a negative
impact on their income streams or common share dividends over the short term.
During this reporting period, we used forward swaps in NPX.
We also continued to put an emphasis on individual credit selection. During this
period, the municipal market saw steady new money issuance as well as a number
of major
1 Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
2 An inverse floating rate trust is a financial instrument designed to pay
long-term tax-exempt interest at a rate that varies inversely with a
short-term tax-exempt interest rate index. For the Nuveen Funds, the index
typically used is the Securities Industry and Financial Markets (SIFM)
Municipal Swap Index (previously referred to as the Bond Market
Association Index or BMA). Inverse floaters, including those inverse
floating rate securities in which the Funds invested during the six-month
period, are further defined within the "Notes to Financial Statements" and
"Glossary of Terms Used in This Report" sections of this shareholder
report.
4
advance refundings 3 and debt restructurings. For the six months ended April 30,
2007, municipal issuance nationwide totaled $223.7 billion, up 32% compared with
the six-month period ended April 30, 2006. During the first four months of 2007,
supply increased 37% over that of the first four months of 2006--to $135.4
billion--primarily due to a 71% increase in refundings during this period.
Much of the new supply was highly rated and insured, which gave us more bonds
from which to choose in implementing the strategies we had planned for these
Funds. In NVG and NEA, which can invest up to 20% of their assets in uninsured
investment-grade quality securities, we also continued to work to maintain the
Funds' weightings of lower credit quality bonds because of their strong
performance and support for the Funds' income streams.
In addition to reinvesting a few bond call proceeds, we selectively sold some of
the Funds' holdings that were nearing redemption in order to generate cash for
purchases. We also took advantage of opportunities to sell bonds that were
purchased when yields were lower and replace them with newer credits that
yielded comparatively more. We continued to redeploy proceeds to bonds that
could help us increase the Funds' income-generating potential, such as credits
with unusual types of coupons, including zero coupon and discount bonds. On the
whole, our purchase activity during this period was directed toward bonds with
interesting structures and characteristics that we believed represented
opportunities to add value, manage duration and volatility, and support
earnings.
3 Advance refundings, also known as pre-refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
5
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as relevant index and peer group
information, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE
For periods ended 4/30/07
CUMULATIVE ANNUALIZED
----------- -------------------------------------
6-MONTH 1-YEAR 5-YEAR 10-YEAR
------------------------------------------------------------------------------
NQI 1.26% 6.37% 6.36% 6.48%
------------------------------------------------------------------------------
NIO 1.28% 6.52% 6.57% 6.41%
------------------------------------------------------------------------------
NIF 1.09% 6.42% 6.37% 6.14%
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NPX 1.45% 6.64% 6.35% 6.60%
------------------------------------------------------------------------------
NVG 1.39% 6.55% 7.28% NA
------------------------------------------------------------------------------
NEA 2.05% 7.35% NA NA
------------------------------------------------------------------------------
Lehman Brothers
Insured Municipal
Bond Index 4 1.60% 6.04% 5.40% 6.03%
------------------------------------------------------------------------------
Lipper Insured
Municipal Debt
Funds Average 5 1.46% 6.77% 6.10% 6.22%
------------------------------------------------------------------------------
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the six months ended April 30, 2007, the cumulative return on NAV for NEA
outperformed the return on the Lehman Brothers Insured Municipal Bond Index; all
the other Funds lagged the insured index. Similarly, NEA exceeded the average
return for the Funds' insured Lipper peer group, while NPX performed in line
with this measure and the remaining four Funds trailed the peer group average
for this period.
Factors that influenced the Funds' returns during this period included duration
and yield curve positioning, individual security selection, advance refunding
activity, and exposure to uninsured credits in NVG and NEA.
As the yield curve continued to flatten over the course of this period,
municipal bonds with maturities of 20 years and longer, as measured by the
Lehman Brothers Municipal Bond Index, performed best, generally outpacing
municipal bonds with shorter maturities. As mentioned earlier, one of our
strategies during this period focused on adding
4 The Lehman Brothers Insured Municipal Bond Index is an unleveraged,
unmanaged national index comprising a broad range of insured municipal
bonds. Results for the Lehman Brothers Index do not reflect any expenses.
5 The Lipper Insured Municipal Debt Funds Average is calculated using the
returns of all closed-end funds in this category for each period as
follows: 6 months, 26; 1 year, 26; 5 years, 21; and 10 years, 18. Fund and
Lipper returns assume reinvestment of dividends.
6
longer bonds to our portfolios. Overall, this purchase activity and our duration
management strategies helped to extend the Funds' durations and bring them
closer in line with our preferred strategic range. Due to changes in the yield
curve over this period, bonds at the shortest end of the curve (with maturities
between 1 and 3 years) also outperformed bonds in the middle of the curve. All
of these Funds tended to be more heavily weighted in intermediate maturities,
which generally hampered their performance. However, NEA had more optimal
exposure to the longer part of the curve, which boosted its return, while NIF
was hurt by its lack of exposure to the shortest end of the curve.
During this period, we continued to employ strategies that we believed could
help to strengthen the future income streams of our portfolios. In addition to
income potential, the Funds' holdings of zero coupon bonds, which we continued
to build, provided a positive impact on performance for this period.
We also continued to see positive contributions from advance refunding activity,
which benefited the Funds through price appreciation and enhanced credit
quality. This was especially true in NEA. At the same time, holdings of older,
previously pre-refunded bonds tended to underperform the general municipal
market during this period, particularly those with effective maturities between
5 and 10 years.
In addition, NVG and NEA have the ability to invest up to 20% of their assets in
uninsured investment-grade quality securities. During this period, bonds rated
BBB or lower generally outperformed other credit quality sectors, largely as the
result of investor demand for the higher yields typically associated with
lower-rated bonds, which drove up their value. As of April 30, 2007, NEA held
approximately 10% of its portfolio in uninsured bonds, including 3% in bonds
rated BBB and 2% in bonds rated A. NVG allocated a smaller percentage of its
portfolio to uninsured bonds and held less than 1% in bonds rated below AA at
the end of this period. Together with its lack of zero coupon holdings, NVG's
relative underexposure to uninsured and lower-rated credits accounted for most
of the performance difference between NEA and NVG.
7
We should also note that all six of these Funds continued to use financial
leverage to provide opportunities for additional income and total return for
common shareholders. However, this strategy can also add volatility to a Fund's
NAV and share price. Over this period, these two characteristics tended to
offset one another, and the use of leverage was generally a neutral factor in
the total return performance of these six leveraged Funds.
8
Dividend and Share Price
INFORMATION
As previously noted, these six Funds use leverage to potentially enhance
opportunities for additional income for common shareholders. Although the extent
of this benefit was reduced during this period due to high short-term interest
rates that, in turn, kept the Funds' borrowing costs high, the Funds' use of
leverage continued to provide incremental income. Consequently, the dividends of
all six of these Funds remained stable throughout the six-month reporting period
ended April 30, 2007.
Due to normal portfolio activity, common shareholders of NIO also received
capital gains distribution of $0.0190 per share at the end of December 2006.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of April 30, 2007, NQI and
NIO had positive UNII balances for both financial statement and, based on our
best estimates, tax purposes, while NIF, NPX, NVG, and NEA had positive UNII
balances, based on our best estimates, for tax purposes and negative UNII
balances for financial statement purposes.
As of April 30, 2007, the Funds' share prices were trading at discounts to their
NAVs as shown in the accompanying chart:
4/30/07 6-MONTH AVERAGE
DISCOUNT DISCOUNT
--------------------------------------------------------------------------------
NQI -3.55% -4.08%
--------------------------------------------------------------------------------
NIO -3.12% -4.46%
--------------------------------------------------------------------------------
NIF -3.22% -3.94%
--------------------------------------------------------------------------------
NPX -6.41% -6.86%
--------------------------------------------------------------------------------
NVG -0.46% -1.71%
--------------------------------------------------------------------------------
NEA -2.22% -1.67%
--------------------------------------------------------------------------------
9
Nuveen Insured Quality Municipal Fund, Inc.
NQI
Performance
OVERVIEW As of April 30, 2007
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 14.69
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.23
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -3.55%
--------------------------------------------------------------------------------
Market Yield 4.94%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield 1 6.86%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 583,309
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 17.98
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.78
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/19/90)
-----------------------------------
ON SHARE PRICE ON NAV
-----------------------------------
6-Month
(Cumulative) 1.52% 1.26%
-----------------------------------
1-Year 6.20% 6.37%
-----------------------------------
5-Year 5.97% 6.36%
-----------------------------------
10-Year 6.27% 6.48%
-----------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 19.6%
--------------------------------------------------------------------------------
Texas 12.2%
--------------------------------------------------------------------------------
New York 9.9%
--------------------------------------------------------------------------------
Illinois 9.6%
--------------------------------------------------------------------------------
Washington 8.0%
--------------------------------------------------------------------------------
Florida 4.7%
--------------------------------------------------------------------------------
Nevada 4.4%
--------------------------------------------------------------------------------
Kentucky 3.6%
--------------------------------------------------------------------------------
Ohio 2.9%
--------------------------------------------------------------------------------
Louisiana 2.6%
--------------------------------------------------------------------------------
Pennsylvania 2.5%
--------------------------------------------------------------------------------
Hawaii 2.0%
--------------------------------------------------------------------------------
Massachusetts 1.6%
--------------------------------------------------------------------------------
West Virginia 1.5%
--------------------------------------------------------------------------------
Other 14.9%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Transportation 20.4%
--------------------------------------------------------------------------------
Tax Obligation/Limited 18.0%
--------------------------------------------------------------------------------
U.S. Guaranteed 17.8%
--------------------------------------------------------------------------------
Tax Obligation/General 14.7%
--------------------------------------------------------------------------------
Health Care 10.8%
--------------------------------------------------------------------------------
Utilities 7.1%
--------------------------------------------------------------------------------
Other 11.2%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CREDIT QUALITY
(as a % of total investments)
[PIE CHART]
Insured 80%
U.S. Guaranteed 17%
FHA/FNMA/GNMA Guaranteed 3%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE
[BAR CHART]
$0.0670 $0.0635 $0.0635 $0.0635 $0.0605 $0.0605 $0.0605 $0.0605 $0.0605 $0.0605 $0.0605 $0.0605
---------------------------------------------------------------------------------------------------------------------
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARE PRICE PERFORMANCE
[LINE CHART]
Weekly
Date Closing Price
-------- -------------
5/01/06 $14.62
$14.38
$14.38
$14.28
$14.26
$14.12
$13.95
$13.98
$13.98
$14.00
$14.09
$13.96
$14.01
$14.30
$14.81
$14.70
$14.83
$14.84
$14.77
$14.55
$14.41
$14.61
$14.62
$14.65
$14.56
$14.66
$14.82
$14.81
$14.80
$14.73
$14.67
$14.85
$14.69
$14.55
$14.49
$14.52
$14.54
$14.58
$14.70
$14.54
$14.61
$14.66
$14.66
$14.70
$14.78
$14.83
$14.80
$14.90
$14.90
$14.81
$14.76
$14.76
4/30/07 $14.69
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
--------------------------------------------------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
10
Nuveen Insured Municipal Opportunity Fund, Inc.
NIO
Performance
OVERVIEW As of April 30, 2007
--------------------------------------------------------------------------------
CREDIT QUALITY
(as a % of total investments)
[PIE CHART]
Insured 73%
U.S. Guaranteed 27%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE 2
[BAR CHART]
$0.0675 $0.0645 $0.0645 $0.0645 $0.0615 $0.0615 $0.0615 $0.0615 $0.0615 $0.0615 $0.0615 $0.0615
---------------------------------------------------------------------------------------------------------------------
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARE PRICE PERFORMANCE
[LINE CHART]
Weekly
Date Closing Price
-------- -------------
5/01/06 $14.61
$14.56
$14.42
$14.41
$14.45
$14.50
$14.41
$14.14
$13.94
$14.10
$14.08
$14.26
$14.46
$14.86
$14.82
$14.78
$14.88
$14.86
$14.85
$14.81
$14.65
$14.73
$14.85
$14.72
$14.50
$14.60
$14.70
$14.84
$14.70
$14.67
$14.71
$14.95
$14.73
$14.48
$14.53
$14.73
$14.78
$14.76
$14.80
$14.67
$14.80
$14.79
$14.76
$14.77
$14.89
$14.93
$14.90
$14.78
$14.81
$14.85
$14.77
$14.85
4/30/07 $14.90
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
--------------------------------------------------------------------------------
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 14.90
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.38
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -3.12%
--------------------------------------------------------------------------------
Market Yield 4.95%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield 1 6.88%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $1,247,630
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 15.89
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.72
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/19/91)
-----------------------------------
ON SHARE PRICE ON NAV
-----------------------------------
6-Month
(Cumulative) 3.69% 1.28%
-----------------------------------
1-Year 7.75% 6.52%
-----------------------------------
5-Year 6.47% 6.57%
-----------------------------------
10-Year 6.26% 6.41%
-----------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 20.5%
--------------------------------------------------------------------------------
Texas 9.9%
--------------------------------------------------------------------------------
Alabama 6.9%
--------------------------------------------------------------------------------
New York 5.8%
--------------------------------------------------------------------------------
Nevada 5.3%
--------------------------------------------------------------------------------
Illinois 4.2%
--------------------------------------------------------------------------------
Colorado 4.1%
--------------------------------------------------------------------------------
Michigan 3.9%
--------------------------------------------------------------------------------
Florida 3.5%
--------------------------------------------------------------------------------
Louisiana 3.4%
--------------------------------------------------------------------------------
Massachusetts 3.0%
--------------------------------------------------------------------------------
Ohio 2.9%
--------------------------------------------------------------------------------
Wisconsin 2.6%
--------------------------------------------------------------------------------
South Carolina 2.6%
--------------------------------------------------------------------------------
Pennsylvania 2.0%
--------------------------------------------------------------------------------
Indiana 1.8%
--------------------------------------------------------------------------------
New Jersey 1.5%
--------------------------------------------------------------------------------
Washington 1.4%
--------------------------------------------------------------------------------
Other 14.7%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 27.8%
--------------------------------------------------------------------------------
Tax Obligation/Limited 18.9%
--------------------------------------------------------------------------------
Transportation 14.5%
--------------------------------------------------------------------------------
Tax Obligation/General 12.8%
--------------------------------------------------------------------------------
Utilities 6.8%
--------------------------------------------------------------------------------
Health Care 6.7%
--------------------------------------------------------------------------------
Water and Sewer 6.6%
--------------------------------------------------------------------------------
Other 5.9%
--------------------------------------------------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2006
of $0.019 per share.
11
Nuveen Premier Insured Municipal Income Fund, Inc.
NIF
Performance
OVERVIEW As of April 30, 2007
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 14.71
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.20
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -3.22%
--------------------------------------------------------------------------------
Market Yield 4.98%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield 1 6.92%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 295,102
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 14.52
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.20
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/19/91)
-----------------------------------
ON SHARE PRICE ON NAV
-----------------------------------
6-Month
(Cumulative) 3.29% 1.09%
-----------------------------------
1-Year 7.17% 6.42%
-----------------------------------
5-Year 5.80% 6.37%
-----------------------------------
10-Year 6.23% 6.14%
-----------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 22.0%
--------------------------------------------------------------------------------
Washington 11.7%
--------------------------------------------------------------------------------
Illinois 10.1%
--------------------------------------------------------------------------------
Texas 6.6%
--------------------------------------------------------------------------------
Colorado 4.5%
--------------------------------------------------------------------------------
New York 4.5%
--------------------------------------------------------------------------------
Nevada 4.3%
--------------------------------------------------------------------------------
Florida 3.2%
--------------------------------------------------------------------------------
Oregon 2.7%
--------------------------------------------------------------------------------
Hawaii 2.4%
--------------------------------------------------------------------------------
Michigan 2.3%
--------------------------------------------------------------------------------
Tennessee 2.3%
--------------------------------------------------------------------------------
Georgia 2.1%
--------------------------------------------------------------------------------
Missouri 2.1%
--------------------------------------------------------------------------------
Pennsylvania 2.1%
--------------------------------------------------------------------------------
Indiana 1.9%
--------------------------------------------------------------------------------
Louisiana 1.6%
--------------------------------------------------------------------------------
Other 13.6%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/General 23.8%
--------------------------------------------------------------------------------
U.S. Guaranteed 21.0%
--------------------------------------------------------------------------------
Tax Obligation/Limited 16.9%
--------------------------------------------------------------------------------
Transportation 14.7%
--------------------------------------------------------------------------------
Health Care 9.6%
--------------------------------------------------------------------------------
Utilities 5.1%
--------------------------------------------------------------------------------
Other 8.9%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CREDIT QUALITY
(as a % of total investments)
[PIE CHART]
Insured 78%
--------------------------------------------------------------------------------
U.S. Guaranteed 21%
--------------------------------------------------------------------------------
FHA/FNMA/GNMA Guaranteed 1%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE
[BAR CHART]
$0.0675 $0.0640 $0.0640 $0.0640 $0.0610 $0.0610 $0.0610 $0.0610 $0.0610 $0.0610 $0.0610 $0.0610
---------------------------------------------------------------------------------------------------------------------
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARE PRICE PERFORMANCE
[LINE CHART]
Weekly
Date Closing Price
-------- -------------
5/01/06 $14.50
$14.44
$14.25
$14.60
$14.35
$14.48
$14.20
$14.10
$13.95
$13.91
$14.10
$14.09
$14.46
$15.07
$14.85
$14.53
$14.70
$14.79
$14.71
$14.53
$14.49
$14.74
$14.61
$14.74
$14.45
$14.45
$14.56
$14.67
$14.74
$14.70
$14.63
$14.76
$14.81
$14.41
$14.46
$14.44
$14.59
$14.55
$14.63
$14.62
$14.57
$14.62
$14.70
$14.80
$14.80
$14.89
$14.87
$14.83
$14.86
$14.86
$14.79
$14.73
4/30/07 $14.71
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
--------------------------------------------------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
12
Nuveen Insured Premium Income Municipal Fund 2
NPX
Performance
OVERVIEW As of April 30, 2007
--------------------------------------------------------------------------------
CREDIT QUALITY
(as a % of total investments)
[PIE CHART]
Insured 77%
U.S. Guaranteed 22%
FHA/FNMA/GNMA Guaranteed 1%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE
[BAR CHART]
$0.0570 $0.0540 $0.0540 $0.0540 $0.0540 $0.0540 $0.0540 $0.0540 $0.0540 $0.0540 $0.0540 $0.0540
---------------------------------------------------------------------------------------------------------------------
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARE PRICE PERFORMANCE
[LINE CHART]
Weekly
Date Closing Price
-------- -------------
5/01/06 $12.67
$12.67
$12.75
$12.75
$12.55
$12.62
$12.55
$12.32
$12.14
$12.32
$12.29
$12.26
$12.38
$12.50
$12.65
$12.58
$12.72
$12.84
$12.99
$12.90
$12.83
$12.91
$13.00
$12.98
$12.85
$13.05
$13.01
$13.13
$13.01
$13.03
$12.98
$13.28
$13.20
$12.89
$13.00
$13.02
$12.97
$13.15
$13.20
$13.09
$13.11
$13.16
$13.12
$13.14
$13.36
$13.46
$13.36
$13.29
$13.34
$13.28
$13.18
$13.17
4/30/07 $13.14
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
--------------------------------------------------------------------------------
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.14
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.04
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -6.41%
--------------------------------------------------------------------------------
Market Yield 4.93%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield 1 6.85%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 524,467
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 15.45
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.89
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/22/93)
-----------------------------------
ON SHARE PRICE ON NAV
-----------------------------------
6-Month
(Cumulative) 3.34% 1.45%
-----------------------------------
1-Year 9.12% 6.64%
-----------------------------------
5-Year 5.51% 6.35%
-----------------------------------
10-Year 7.32% 6.60%
-----------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 16.5%
--------------------------------------------------------------------------------
Texas 9.2%
--------------------------------------------------------------------------------
New York 8.8%
--------------------------------------------------------------------------------
Pennsylvania 8.4%
--------------------------------------------------------------------------------
Colorado 5.4%
--------------------------------------------------------------------------------
Hawaii 4.6%
--------------------------------------------------------------------------------
Wisconsin 4.3%
--------------------------------------------------------------------------------
Washington 4.2%
--------------------------------------------------------------------------------
New Jersey 3.0%
--------------------------------------------------------------------------------
Louisiana 2.7%
--------------------------------------------------------------------------------
Alabama 2.6%
--------------------------------------------------------------------------------
Georgia 2.3%
--------------------------------------------------------------------------------
North Dakota 2.3%
--------------------------------------------------------------------------------
Nebraska 2.2%
--------------------------------------------------------------------------------
Illinois 2.2%
--------------------------------------------------------------------------------
Oregon 2.1%
--------------------------------------------------------------------------------
Nevada 1.9%
--------------------------------------------------------------------------------
Virginia 1.8%
--------------------------------------------------------------------------------
Massachusetts 1.8%
--------------------------------------------------------------------------------
Other 13.7%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 19.6%
--------------------------------------------------------------------------------
Utilities 18.2%
--------------------------------------------------------------------------------
Tax Obligation/Limited 16.4%
--------------------------------------------------------------------------------
Transportation 11.1%
--------------------------------------------------------------------------------
Tax Obligation/General 10.6%
--------------------------------------------------------------------------------
Water and Sewer 7.6%
--------------------------------------------------------------------------------
Education and Civic Organizations 6.9%
--------------------------------------------------------------------------------
Health Care 5.9%
--------------------------------------------------------------------------------
Other 3.7%
--------------------------------------------------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
13
Nuveen Insured Dividend Advantage Municipal Fund
NVG
Performance
OVERVIEW As of April 30, 2007
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 15.26
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.33
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -0.46%
--------------------------------------------------------------------------------
Market Yield 5.03%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield 1 6.99%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 456,850
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 13.83
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.14
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
-----------------------------------
ON SHARE PRICE ON NAV
-----------------------------------
6-Month
(Cumulative) 5.11% 1.39%
-----------------------------------
1-Year 6.48% 6.55%
-----------------------------------
5-Year 6.92% 7.28%
-----------------------------------
Since
Inception 6.79% 7.56%
-----------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Texas 17.6%
--------------------------------------------------------------------------------
California 11.4%
--------------------------------------------------------------------------------
Indiana 10.0%
--------------------------------------------------------------------------------
Washington 9.5%
--------------------------------------------------------------------------------
Illinois 8.3%
--------------------------------------------------------------------------------
Florida 7.4%
--------------------------------------------------------------------------------
Tennessee 6.0%
--------------------------------------------------------------------------------
Colorado 3.8%
--------------------------------------------------------------------------------
New York 3.2%
--------------------------------------------------------------------------------
Alabama 2.7%
--------------------------------------------------------------------------------
Alaska 2.3%
--------------------------------------------------------------------------------
Pennsylvania 2.2%
--------------------------------------------------------------------------------
Louisiana 2.2%
--------------------------------------------------------------------------------
Other 13.4%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 29.3%
--------------------------------------------------------------------------------
Transportation 15.5%
--------------------------------------------------------------------------------
Tax Obligation/General 13.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 11.3%
--------------------------------------------------------------------------------
Utilities 8.1%
--------------------------------------------------------------------------------
Water and Sewer 7.0%
--------------------------------------------------------------------------------
Health Care 6.8%
--------------------------------------------------------------------------------
Education and Civic Organizations 6.1%
--------------------------------------------------------------------------------
Other 2.4%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CREDIT QUALITY
(as a % of total investments)
[PIE CHART]
Insured 67%
U.S Guaranteed 26%
AAA (Uninsured) 2%
AA (Uninsured) 5%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE
[BAR CHART]
$0.0705 $0.0670 $0.0670 $0.0670 $0.0640 $0.0640 $0.0640 $0.0640 $0.0640 $0.0640 $0.0640 $0.0640
------------------------------------------------------------------------------------------------------------------
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARE PRICE PERFORMANCE
[LINE CHART]
Weekly
Date Closing Price
-------- -------------
5/01/06 $15.05
$14.82
$14.58
$14.60
$14.66
$14.59
$14.63
$14.42
$14.08
$14.23
$14.37
$14.35
$14.37
$14.89
$15.13
$14.99
$15.00
$15.07
$15.04
$14.94
$14.85
$14.87
$14.86
$14.87
$14.73
$14.91
$14.84
$14.93
$14.94
$15.06
$14.96
$15.15
$15.40
$15.16
$15.09
$15.24
$15.06
$15.10
$15.21
$15.08
$15.08
$15.06
$14.97
$15.05
$15.16
$15.24
$15.30
$15.37
$15.35
$15.27
$15.10
$15.25
4/30/07 $15.26
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
--------------------------------------------------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
14
Nuveen Insured Tax-Free Advantage Municipal Fund
NEA
Performance
OVERVIEW As of April 30, 2007
--------------------------------------------------------------------------------
CREDIT QUALITY
(as a % of total investments)
[PIE CHART]
Insured 67%
U.S. Guaranteed 23%
AAA (Uninsured) 3%
AA (Uninsured) 2%
A (Uninsured) 2%
BBB (Uninsured) 3%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE
[BAR CHART]
$0.0620 $0.0620 $0.0620 $0.0620 $0.0590 $0.0590 $0.0590 $0.0590 $0.0590 $0.0590 $0.0590 $0.0590
-------------------------------------------------------------------------------------------------------------
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARE PRICE PERFORMANCE
[LINE CHART]
Weekly
Date Closing Price
-------- -------------
5/01/06 $13.79
$13.74
$13.84
$13.71
$13.53
$13.59
$13.58
$13.48
$13.52
$13.84
$14.05
$13.99
$14.20
$14.24
$14.47
$14.30
$14.37
$14.49
$14.47
$14.29
$14.35
$14.40
$14.56
$14.49
$14.40
$14.30
$14.29
$14.66
$14.84
$14.59
$14.55
$15.00
$14.89
$14.33
$14.48
$14.30
$14.41
$14.40
$14.69
$14.56
$14.76
$15.78
$14.59
$14.61
$14.80
$14.65
$14.71
$14.76
$14.90
$15.00
$14.78
$14.74
4/30/07 $14.55
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
--------------------------------------------------------------------------------
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 14.55
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.88
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -2.22%
--------------------------------------------------------------------------------
Market Yield 4.87%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield 1 6.76%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 275,591
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 16.11
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.54
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/21/02)
-----------------------------------
ON SHARE PRICE ON NAV
-----------------------------------
6-Month
(Cumulative) 3.85% 2.05%
-----------------------------------
1-Year 11.54% 7.35%
-----------------------------------
Since
Inception 5.08% 6.58%
-----------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 19.3%
--------------------------------------------------------------------------------
Texas 8.6%
--------------------------------------------------------------------------------
Michigan 7.7%
--------------------------------------------------------------------------------
New York 7.2%
--------------------------------------------------------------------------------
Washington 6.0%
--------------------------------------------------------------------------------
Pennsylvania 5.9%
--------------------------------------------------------------------------------
Indiana 5.8%
--------------------------------------------------------------------------------
Alabama 5.5%
--------------------------------------------------------------------------------
South Carolina 4.9%
--------------------------------------------------------------------------------
Wisconsin 4.4%
--------------------------------------------------------------------------------
Massachusetts 3.3%
--------------------------------------------------------------------------------
Arizona 2.5%
--------------------------------------------------------------------------------
Colorado 2.5%
--------------------------------------------------------------------------------
Illinois 2.5%
--------------------------------------------------------------------------------
Other 13.9%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 23.4%
--------------------------------------------------------------------------------
Tax Obligation/General 21.2%
--------------------------------------------------------------------------------
Tax Obligation/Limited 20.2%
--------------------------------------------------------------------------------
Health Care 11.8%
--------------------------------------------------------------------------------
Utilities 9.5%
--------------------------------------------------------------------------------
Transportation 7.0%
--------------------------------------------------------------------------------
Other 6.9%
--------------------------------------------------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
15
Nuveen Insured Quality Municipal Fund, Inc. (NQI)
Portfolio of
INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.6% (1.0% OF TOTAL INVESTMENTS)
$ 1,135 Birmingham Waterworks and Sewerage Board, Alabama, Water and 1/13 at 100.00 AAA $ 1,223,269
Sewerage Revenue Bonds, Series 2002B, 5.250%, 1/01/20
(Pre-refunded 1/01/13) - MBIA Insured
7,500 Huntsville Healthcare Authority, Alabama, Revenue Bonds, Series 6/15 at 100.00 AAA 7,868,175
2005A, 5.000%, 6/01/24 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,635 Total Alabama 9,091,444
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.7% (1.0% OF TOTAL INVESTMENTS)
9,200 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/12 at 100.00 AAA 9,605,076
Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 - FGIC
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS)
4,250 University of Arkansas, Fayetteville, Revenue Bonds, Medical 11/14 at 100.00 Aaa 4,496,288
Sciences Campus, Series 2004B, 5.000%, 11/01/24 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 31.1% (19.5% OF TOTAL INVESTMENTS)
1,500 Acalanes Union High School District, Contra Costa County, 8/15 at 100.00 AAA 1,597,410
California, General Obligation Bonds, Series 2005, 5.000%,
8/01/24 - FGIC Insured
California Department of Water Resources, Water System
Revenue Bonds, Central Valley Project, Series 2005AC:
4,045 5.000%, 12/01/24 - MBIA Insured 12/14 at 100.00 AAA 4,309,462
4,000 5.000%, 12/01/26 - MBIA Insured 12/14 at 100.00 AAA 4,252,920
1,275 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aaa 1,387,455
Occidental College, Series 2005A, 5.250%, 10/01/23 - MBIA Insured
7,115 California Infrastructure Economic Development Bank, First Lien 1/28 at 100.00 AAA 7,974,919
Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A,
5.000%, 7/01/33 (Pre-refunded 1/01/28) - AMBAC Insured (UB)
13,175 California Pollution Control Financing Authority, Revenue Refunding 9/09 at 101.00 AAA 13,730,195
Bonds, Southern California Edison Company, Series 1999A,
5.450%, 9/01/29 - MBIA Insured
8,000 California, General Obligation Bonds, Series 2002, 5.000%, 10/12 at 100.00 AAA 8,310,960
10/01/32 - MBIA Insured
3,750 California, General Obligation Bonds, Series 2004, 5.000%, 4/14 at 100.00 AAA 4,044,638
4/01/31 - AMBAC Insured
20,500 California, General Obligation Refunding Bonds, Series 2002, 4/12 at 100.00 AAA 21,323,075
5.000%, 4/01/27 - AMBAC Insured
2,340 Cerritos Public Financing Authority, California, Tax Allocation 11/17 at 102.00 AAA 2,524,181
Revenue Bonds, Los Cerritos Redevelopment Projects, Series
2002A, 5.000%, 11/01/24 - AMBAC Insured
5,000 Clovis Unified School District, Fresno County, California, General No Opt. Call AAA 2,263,250
Obligation Bonds, Series 2001A, 0.000%, 8/01/25 - FGIC Insured
Foothill/Eastern Transportation Corridor Agency, California, Toll
Road Revenue Refunding Bonds, Series 1999:
22,985 0.000%, 1/15/24 - MBIA Insured 1/10 at 44.52 AAA 9,138,836
22,000 0.000%, 1/15/31 - MBIA Insured 1/10 at 29.11 AAA 5,696,020
50,000 0.000%, 1/15/37 - MBIA Insured 1/10 at 20.19 AAA 8,977,500
5,000 Garden Grove, California, Certificates of Participation, Financing 3/12 at 101.00 AAA 5,244,500
Project, Series 2002A, 5.125%, 3/01/32 - AMBAC Insured
5,500 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 5,777,640
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
5.000%, 6/01/35 - FGIC Insured
3,795 Kern Community College District, California, General Obligation 11/15 at 100.00 AAA 4,070,517
Bonds, Series 2005, 5.000%, 11/01/20 - FSA Insured
5,795 Kern Community College District, California, General Obligation No Opt. Call AAA 2,566,779
Bonds, Series 2006, 0.000%, 11/01/25 - FSA Insured
16
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 5,408 Moreno Valley Public Finance Authority, California, GNMA 1/12 at 105.00 Aaa $ 5,615,613
Collateralized Assisted Living Housing Revenue Bonds, CDC
Assisted Living Project, Series 2000A, 7.500%, 1/20/42
5,650 Ontario Redevelopment Financing Authority, San Bernardino County, 8/07 at 100.00 AAA 6,296,869
California, Revenue Bonds, Redevelopment Project 1, Series 1993,
5.850%, 8/01/22 - MBIA Insured (ETM)
3,615 Pasadena Unified School District, Los Angeles County, California, 5/13 at 100.00 AAA 3,878,967
General Obligation Bonds, Series 2003D, 5.000%, 5/01/24
(Pre-refunded 5/01/13) - MBIA Insured
2,590 Riverside County Public Financing Authority, California, Tax 10/14 at 100.00 AAA 2,721,676
Allocation Bonds, Multiple Projects, Series 2004, 5.000%,
10/01/25 - XLCA Insured
2,000 San Diego Redevelopment Agency, California, Subordinate Lien Tax 9/14 at 100.00 AAA 2,136,460
Allocation Bonds, Centre City Project, Series 2004A, 5.000%,
9/01/21 - XLCA Insured
San Francisco Airports Commission, California, Revenue
Refunding Bonds, San Francisco International Airport,
Second Series 2001, Issue 27A:
7,200 5.125%, 5/01/21 - MBIA Insured (Alternative Minimum Tax) 5/11 at 100.00 AAA 7,465,824
12,690 5.250%, 5/01/31 - MBIA Insured (Alternative Minimum Tax) 5/11 at 100.00 AAA 13,147,855
San Francisco Bay Area Rapid Transit District, California,
Sales Tax Revenue Bonds, Series 2005A:
2,000 5.000%, 7/01/21 - MBIA Insured 7/15 at 100.00 AAA 2,142,420
3,655 5.000%, 7/01/22 - MBIA Insured 7/15 at 100.00 AAA 3,909,205
3,840 5.000%, 7/01/23 - MBIA Insured 7/15 at 100.00 AAA 4,092,749
8,965 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/17 at 100.00 AAA 8,624,599
Merged Area Redevelopment Project, Series 2006C, 4.250%,
8/01/30 - MBIA Insured (UB)
3,500 Saugus Union School District, Los Angeles County, California, No Opt. Call AAA 1,736,315
General Obligation Bonds, Series 2006, 0.000%,
8/01/23 - FGIC Insured
1,000 Sierra Joint Community College District, Tahoe Truckee, California, 8/14 at 100.00 AAA 1,065,860
General Obligation Bonds, School Facilities Improvement District
1, Series 2005A, 5.000%, 8/01/27 - FGIC Insured
1,575 Sierra Joint Community College District, Western Nevada, 8/14 at 100.00 AAA 1,674,335
California, General Obligation Bonds, School Facilities
Improvement District 2, Series 2005A, 5.000%,
8/01/27 - FGIC Insured
3,600 Ventura County Community College District, California, General 8/15 at 100.00 AAA 3,820,824
Obligation Bonds, Series 2005B, 5.000%, 8/01/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
253,063 Total California 181,519,828
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 2.3% (1.4% OF TOTAL INVESTMENTS)
2,015 Board of Trustees of the University of Northern Colorado, Revenue 6/15 at 100.00 AAA 2,150,106
Bonds, Series 2005, 5.000%, 6/01/22 - FSA Insured
Denver City and County, Colorado, Airport Revenue
Bonds, Series 2006:
5,365 5.000%, 11/15/23 - FGIC Insured (UB) 11/16 at 100.00 AAA 5,723,382
2,545 6.640%, 11/15/25 - FGIC Insured (IF) 11/16 at 100.00 AAA 3,036,363
1,250 Jefferson County School District R1, Colorado, General Obligation 12/14 at 100.00 AAA 1,324,238
Bonds, Series 2004, 5.000%, 12/15/24 - FSA Insured
1,000 University of Colorado, Enterprise System Revenue Bonds, 6/15 at 100.00 AAA 1,058,900
Series 2005, 5.000%, 6/01/30 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
12,175 Total Colorado 13,292,989
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.4% (0.2% OF TOTAL INVESTMENTS)
2,000 Connecticut, General Obligation Bonds, Series 2004D, 5.000%, 12/14 at 100.00 AAA 2,141,840
12/01/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.2% (1.4% OF TOTAL INVESTMENTS)
8,000 Washington Convention Center Authority, District of Columbia, 10/08 at 101.00 AAA 8,226,640
Senior Lien Dedicated Tax Revenue Bonds, Series 1998, 5.000%,
10/01/21 (Pre-refunded 10/01/08) - AMBAC Insured
1,000 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 Aaa 980,580
Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals
1606, 5.462%, 10/01/30 - AMBAC Insured (IF)
3,920 Washington DC Convention Center Authority, Dedicated Tax Revenue 10/16 at 100.00 Aaa 3,759,084
Bonds, Residual Series 1730, 1731, 1736, 7.230%, 10/01/36
(WI/DD, Settling 5/03/07) - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
12,920 Total District of Columbia 12,966,304
------------------------------------------------------------------------------------------------------------------------------------
17
Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 7.6% (4.7% OF TOTAL INVESTMENTS)
$ 3,450 Collier County, Florida, Capital Improvement Revenue Bonds, Series 10/14 at 100.00 AAA $ 3,643,407
2005, 5.000%, 10/01/24 - MBIA Insured
3,250 Florida State Board of Education, Full Faith and Credit Public 6/13 at 101.00 AAA 3,454,880
Education Capital Outlay Bonds, Series 2003J, 5.000%,
6/01/22 - AMBAC Insured
20,000 Lee County, Florida, Airport Revenue Bonds, Series 2000A, 5.750%, 10/10 at 101.00 AAA 21,298,600
10/01/25 - FSA Insured (Alternative Minimum Tax)
4,115 Miami-Dade County Housing Finance Authority, Florida, Multifamily 7/11 at 100.00 AAA 4,271,000
Housing Revenue Bonds, Monterey Pointe Apartments, Series
2001-2A, 5.850%, 7/01/37 - FSA Insured (Alternative Minimum Tax)
7,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA 7,390,880
International Airport, Series 2002, 5.375%, 10/01/32 - FGIC
Insured (Alternative Minimum Tax)
3,780 Palm Beach County School Board, Florida, Certificates of 8/13 at 100.00 AAA 4,019,954
Participation, Series 2003A, 5.000%, 8/01/16 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
41,595 Total Florida 44,078,721
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 2004, 11/14 at 100.00 AAA 1,059,280
5.000%, 11/01/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 3.2% (2.0% OF TOTAL INVESTMENTS)
1,620 Hawaii County, Hawaii, General Obligation Bonds, Series 2003A, 7/13 at 100.00 AAA 1,722,384
5.000%, 7/15/21 - FSA Insured
Hawaii Department of Transportation, Airport System
Revenue Refunding Bonds, Series 2000B:
8,785 6.625%, 7/01/18 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 AAA 9,554,302
7,000 6.000%, 7/01/19 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 AAA 7,483,910
------------------------------------------------------------------------------------------------------------------------------------
17,405 Total Hawaii 18,760,596
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 15.3% (9.6% OF TOTAL INVESTMENTS)
9,500 Chicago, Illinois, Second Lien General Airport Revenue Refunding 1/10 at 101.00 AAA 9,961,985
Bonds, O'Hare International Airport, Series 1999, 5.500%,
1/01/15 - AMBAC Insured (Alternative Minimum Tax)
2,875 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 3,108,565
O'Hare International Airport, Series 2005A, 5.250%,
1/01/24 - MBIA Insured
25,000 Illinois Health Facilities Authority, Revenue Bonds, Iowa Health 2/10 at 101.00 AAA 26,605,750
System, Series 2000, 5.875%, 2/15/30 - AMBAC Insured (ETM)
13,275 Illinois, General Obligation Bonds, Illinois FIRST Program, Series 5/11 at 100.00 AAA 13,883,128
2001, 5.250%, 5/01/26 - FSA Insured
15,785 Illinois, General Obligation Bonds, Illinois FIRST Program, Series 4/12 at 100.00 AAA 16,621,763
2002, 5.250%, 4/01/27 - FSA Insured
18,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 8,430,840
Bonds, McCormick Place Expansion Project, Series 2002A,
0.000%, 12/15/24 - MBIA Insured
10,000 University of Illinois, Certificates of Participation, Utility 8/11 at 100.00 AAA 10,615,400
Infrastructure Projects, Series 2001B, 5.250%, 8/15/21
(Pre-refunded 8/15/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
94,435 Total Illinois 89,227,431
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.6% (1.0% OF TOTAL INVESTMENTS)
7,790 Indiana Transportation Finance Authority, Highway Revenue Bonds, No Opt. Call AAA 9,199,912
Series 1990A, 7.250%, 6/01/15 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.6% (0.4% OF TOTAL INVESTMENTS)
3,000 Wichita, Kansas, Water and Sewerage Utility Revenue Bonds, Series 10/13 at 100.00 AAA 3,195,360
2003, 5.000%, 10/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 5.7% (3.6% OF TOTAL INVESTMENTS)
3,015 Kentucky Asset/Liability Commission, General Fund Revenue Project 5/15 at 100.00 AAA 3,193,277
Notes, First Series 2005, 5.000%, 5/01/25 - MBIA Insured
18
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY (continued)
Kentucky Economic Development Finance Authority, Health System
Revenue Bonds, Norton Healthcare Inc., Series 2000C:
$ 2,530 6.150%, 10/01/27 - MBIA Insured 10/13 at 101.00 AAA $ 2,862,467
12,060 6.150%, 10/01/28 - MBIA Insured 10/13 at 101.00 AAA 13,644,805
Kentucky Economic Development Finance Authority, Health System
Revenue Bonds, Norton Healthcare Inc., Series 2000C:
3,815 6.150%, 10/01/27 (Pre-refunded 10/01/13) - MBIA Insured 10/13 at 101.00 Aaa 4,361,804
6,125 6.150%, 10/01/28 (Pre-refunded 10/01/13) - MBIA Insured 10/13 at 101.00 Aaa 7,002,896
2,230 Kentucky State Property and Buildings Commission, Revenue Bonds, 8/15 at 100.00 AAA 2,374,816
Project 85, Series 2005, 5.000%, 8/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
29,775 Total Kentucky 33,440,065
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 4.1% (2.6% OF TOTAL INVESTMENTS)
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006:
11,325 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 11,612,768
8,985 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AAA 8,838,904
3,515 Orleans Levee District, Louisiana, Levee District General 6/07 at 102.50 AAA 3,608,112
Obligation Bonds, Series 1986, 5.950%, 11/01/15 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
23,825 Total Louisiana 24,059,784
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.4% (0.9% OF TOTAL INVESTMENTS)
8,000 Maine Health and Higher Educational Facilities Authority, Revenue 7/09 at 101.00 AAA 8,434,720
Bonds, Series 1999B, 6.000%, 7/01/29 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.8% (1.1% OF TOTAL INVESTMENTS)
2,100 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 AAA 2,155,650
Revenue Bonds, Western Maryland Health, Series 2006A,
4.750%, 7/01/36 - MBIA Insured (UB)
7,535 Maryland Transportation Authority, Airport Parking Revenue Bonds, 3/12 at 101.00 AAA 8,070,437
Baltimore-Washington International Airport Passenger Facility,
Series 2002B, 5.500%, 3/01/18 - AMBAC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,635 Total Maryland 10,226,087
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.6% (1.6% OF TOTAL INVESTMENTS)
5,000 Massachusetts Bay Transportation Authority, Senior Sales Tax 7/12 at 100.00 AAA 5,309,100
Revenue Refunding Bonds, Series 2002A, 5.000%, 7/01/27
(Pre-refunded 7/01/12) - FGIC Insured
1,680 Massachusetts College Building Authority, Project Revenue Bonds, 5/16 at 100.00 AAA 1,779,238
Series 2006A, 5.000%, 5/01/36 - AMBAC Insured
1,100 Massachusetts Water Resources Authority, General Revenue Bonds, 8/17 at 100.00 AAA 1,211,243
Series 2005A, 5.250%, 8/01/26 - MBIA Insured
1,000 Massachusetts Water Resources Authority, General Revenue Bonds, 2/17 at 100.00 Aaa 951,990
Series 2007, Residual Trust 7039, 5.140%,
8/01/46 - FSA Insured (IF)
Massachusetts, Special Obligation Dedicated Tax
Revenue Bonds, Series 2004:
1,250 5.250%, 1/01/21 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 1,358,513
1,000 5.250%, 1/01/22 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 1,086,810
1,195 5.250%, 1/01/23 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 1,298,738
2,000 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 2,173,620
------------------------------------------------------------------------------------------------------------------------------------
14,225 Total Massachusetts 15,169,252
------------------------------------------------------------------------------------------------------------------------------------
19
Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.9% (0.5% OF TOTAL INVESTMENTS)
$ 4,750 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA $ 4,987,500
Pollution Control Revenue Refunding Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 - MBIA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.0% (0.0% OF TOTAL INVESTMENTS)
12 St. Louis Park, Minnesota, GNMA Mortgage-Backed Securities Program 10/07 at 100.00 Aaa 12,157
Single Family Residential Mortgage Revenue Bonds, Series
1991A, 7.250%, 4/20/23
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.3% (0.9% OF TOTAL INVESTMENTS)
2,715 Harrison County Wastewater Management District, Mississippi, No Opt. Call AAA 3,347,324
Revenue Refunding Bonds, Wastewater Treatment Facilities, Series
1991B, 7.750%, 2/01/14 - FGIC Insured (ETM)
2,545 Harrison County Wastewater Management District, Mississippi, No Opt. Call AAA 3,157,658
Wastewater Treatment Facilities Revenue Refunding Bonds, Series
1991A, 8.500%, 2/01/13 - FGIC Insured (ETM)
1,225 Mississippi Home Corporation, GNMA Collateralized Single Family 6/07 at 104.00 Aaa 1,277,246
Mortgage Revenue Bonds, Series 1996C, 7.600%, 6/01/29
(Pre-refunded 6/01/07) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,485 Total Mississippi 7,782,228
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 7.0% (4.4% OF TOTAL INVESTMENTS)
33,700 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 34,774,015
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000, 5.375%, 1/01/40 - AMBAC Insured
5,720 Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, Reno 6/12 at 100.00 AAA 6,087,739
Transportation Rail Access Corridor Project, Series 2002,
5.125%, 6/01/32 (Pre-refunded 6/01/12) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
39,420 Total Nevada 40,861,754
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.4% (0.9% OF TOTAL INVESTMENTS)
New Jersey Economic Development Authority, Revenue Bonds, Motor
Vehicle Surcharge, Series 2004A:
1,700 5.000%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 1,813,696
1,700 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 1,794,656
2,230 New Jersey Educational Facilities Authority, Revenue Bonds, Rowan 7/17 at 100.00 AAA 2,177,171
College, Series 2007B, 4.250%, 7/01/34 - FGIC Insured
2,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 5.000%, 7/13 at 100.00 AAA 2,657,125
1/01/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,130 Total New Jersey 8,442,648
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.1% (0.7% OF TOTAL INVESTMENTS)
New Mexico Finance Authority, Public Project Revolving Fund
Revenue Bonds, Series 2004C:
1,420 5.000%, 6/01/22 - AMBAC Insured 6/14 at 100.00 AAA 1,510,426
3,290 5.000%, 6/01/23 - AMBAC Insured 6/14 at 100.00 AAA 3,477,629
1,530 New Mexico State University, Revenue Bonds, Series 2004, 4/14 at 100.00 AAA 1,615,481
5.000%, 4/01/23 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,240 Total New Mexico 6,603,536
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 15.9% (9.9% OF TOTAL INVESTMENTS)
11,760 Dormitory Authority of the State of New York, New York City, Lease 5/10 at 101.00 AAA 12,582,259
Revenue Bonds, Court Facilities, Series 1999, 5.750%, 5/15/30
(Pre-refunded 5/15/10) - AMBAC Insured
1,100 Dormitory Authority of the State of New York, Revenue Bonds, Mental 2/15 at 100.00 AAA 1,165,021
Health Services Facilities Improvements, Series 2005A,
5.000%, 2/15/24 - AMBAC Insured
15,000 Dormitory Authority of the State of New York, Revenue Bonds, School 10/12 at 100.00 AAA 16,331,250
Districts Financing Program, Series 2002D, 5.500%,
10/01/17 - MBIA Insured
4,070 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 4,014,038
2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
5,000 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 AAA 5,328,550
Revenue Bonds, Series 2006A, 5.000%, 12/01/25 - FGIC Insured
3,300 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 AAA 3,196,446
Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA Insured (UB)
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 8,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA $ 8,408,000
Contract Refunding Bonds, Series 2002A, 5.000%,
7/01/25 - FGIC Insured
6,940 New York Convention Center Development Corporation, Hotel Unit Fee 11/15 at 100.00 AAA 7,287,139
Revenue Bonds, Series 2005, 5.000%, 11/15/44 - AMBAC Insured (UB)
10,255 New York State Housing Finance Agency, Mortgage Revenue Refunding 5/07 at 101.00 AAA 10,376,624
Bonds, Housing Project, Series 1996A, 6.125%,
11/01/20 - FSA Insured
4,200 New York State Mortgage Agency, Homeowner Mortgage Revenue Bonds, 10/09 at 100.00 AAA 4,303,614
Series 82, 5.550%, 10/01/19 - MBIA Insured
(Alternative Minimum Tax)
1,950 New York State Thruway Authority, Highway and Bridge Trust Fund 10/15 at 100.00 AAA 2,086,149
Bonds, Second Generation, Series 2005B, 5.000%,
4/01/21 - AMBAC Insured
6,595 New York State Thruway Authority, State Personal Income Tax 3/15 at 100.00 AAA 7,002,109
Revenue Bonds, Series 2005A, 5.000%, 3/15/25 - FSA Insured
New York State Urban Development Corporation, Service
Contract Revenue Bonds, Series 2005B:
2,460 5.000%, 3/15/24 - FSA Insured 3/15 at 100.00 AAA 2,613,553
2,465 5.000%, 3/15/25 - FSA Insured 3/15 at 100.00 AAA 2,617,164
5,000 Triborough Bridge and Tunnel Authority, New York, Subordinate Lien 11/13 at 100.00 AAA 5,252,900
General Purpose Revenue Bonds, Series 2003A, 5.000%,
11/15/32 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
88,095 Total New York 92,564,816
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.6% (2.9% OF TOTAL INVESTMENTS)
1,585 Cincinnati City School District, Hamilton County, Ohio, General No Opt. Call AAA 1,812,020
Obligation Bonds, Series 2006, 5.250%, 12/01/23 - FGIC Insured
7,000 Cleveland State University, Ohio, General Receipts Bonds, Series 6/14 at 100.00 AAA 7,584,430
2004, 5.250%, 6/01/19 - FGIC Insured
9,200 Hamilton County, Ohio, Sales Tax Bonds, Subordinate, Series 2006, 12/16 at 100.00 AAA 8,927,220
4.250%, 12/01/32 - AMBAC Insured (UB)
5,000 Lorain County, Ohio, Health Facilities Revenue Bonds, Catholic 9/09 at 102.00 AAA 5,261,150
Healthcare Partners, Series 1999A, 5.500%,
9/01/29 - AMBAC Insured
3,065 Oak Hills Local School District, Hamilton County, Ohio, General 12/15 at 100.00 AAA 3,259,413
Obligation Bonds, Series 2005, 5.000%, 12/01/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
25,850 Total Ohio 26,844,233
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,250 Oklahoma Capitol Improvement Authority, State Facilities Revenue 7/15 at 100.00 AAA 2,391,660
Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.9% (2.5% OF TOTAL INVESTMENTS)
3,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage Revenue 12/15 at 100.00 AAA 3,201,480
Bonds, Series 2005A, 5.000%, 12/01/23 - MBIA Insured
7,000 Allegheny County, Pennsylvania, Airport Revenue Refunding Bonds, 1/08 at 101.00 AAA 7,122,430
Pittsburgh International Airport, Series 1997A, 5.250%,
1/01/16 - MBIA Insured (Alternative Minimum Tax)
Delaware County Authority, Pennsylvania, Revenue Bonds,
Villanova University, Series 2006:
3,260 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 3,492,927
1,600 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 1,711,760
5,400 Pennsylvania Public School Building Authority, Lease Revenue Bonds, 12/16 at 100.00 AAA 5,379,696
School District of Philadelphia, Series 2006B, 4.500%,
6/01/32 - FSA Insured (UB)
2,000 Pittsburgh Public Parking Authority, Pennsylvania, Parking Revenue 12/15 at 100.00 AAA 2,129,840
Bonds, Series 2005B, 5.000%, 12/01/23 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
22,260 Total Pennsylvania 23,038,133
------------------------------------------------------------------------------------------------------------------------------------
21
Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/15 at 100.00 AAA $ 2,682,525
2005RR, 5.000%, 7/01/22 - FGIC Insured
5,000 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call AAA 5,646,450
Authority, Series 2003AA, 5.500%, 7/01/16 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
7,500 Total Puerto Rico 8,328,975
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.5% (0.3% OF TOTAL INVESTMENTS)
3,000 Charleston County School District, South Carolina, General 2/14 at 100.00 AAA 3,181,290
Obligation Bonds, Series 2004A, 5.000%, 2/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.0% (0.6% OF TOTAL INVESTMENTS)
Knox County Health, Educational and Housing Facilities Board,
Tennessee, Hospital Revenue Refunding Bonds, Covenant
Health, Series 2002A:
7,500 0.000%, 1/01/24 - FSA Insured 1/13 at 52.75 AAA 3,070,950
5,000 0.000%, 1/01/25 - FSA Insured 1/13 at 49.71 AAA 1,927,400
2,750 0.000%, 1/01/26 - FSA Insured 1/13 at 46.78 AAA 994,868
------------------------------------------------------------------------------------------------------------------------------------
15,250 Total Tennessee 5,993,218
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 19.5% (12.2% OF TOTAL INVESTMENTS)
8,000 Abilene Health Facilities Development Corporation, Texas, Hospital 9/07 at 100.00 AAA 8,059,920
Revenue Refunding and Improvement Bonds, Hendrick Medical
Center Project, Series 1995C, 6.150%, 9/01/25 - MBIA Insured
5,275 Austin, Texas, Combined Utility System Revenue Refunding Bonds, 11/07 at 100.00 AAA 5,313,877
Series 1997, 5.125%, 11/15/20 - FSA Insured
3,135 Corpus Christi, Texas, Utility System Revenue Bonds, Series 2004, 7/14 at 100.00 AAA 3,390,346
5.250%, 7/15/20 - FSA Insured
3,000 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 AAA 3,217,170
Refunding and Improvement Bonds, Series 2001A, 5.750%,
11/01/13 - FGIC Insured (Alternative Minimum Tax)
3,735 Grand Prairie Independent School District, Dallas County, Texas, 2/13 at 100.00 AAA 4,002,949
General Obligation Bonds, Series 2003, 5.125%, 2/15/31
(Pre-refunded 2/15/13) - FSA Insured
1,465 Harris County Hospital District, Texas, Revenue Refunding Bonds, No Opt. Call AAA 1,551,801
Series 1990, 7.400%, 2/15/10 - AMBAC Insured
495 Harris County Hospital District, Texas, Revenue Refunding Bonds, No Opt. Call AAA 519,314
Series 1990, 7.400%, 2/15/10 - AMBAC Insured (ETM)
5,000 Houston, Texas, First Lien Combined Utility System Revenue Bonds, 5/14 at 100.00 AAA 5,396,100
Series 2004A, 5.250%, 5/15/24 - FGIC Insured
4,500 Houston, Texas, General Obligation Public Improvement Bonds, 3/11 at 100.00 AAA 4,668,075
Series 2001A, 5.000%, 3/01/22 - FSA Insured
17,000 Houston, Texas, Junior Lien Water and Sewerage System Revenue No Opt. Call AAA 21,122,500
Refunding Bonds, Series 2002A, 5.750%,
12/01/32 - FSA Insured (ETM)
4,685 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/10 at 100.00 AAA 4,882,754
Series 2000A, 5.500%, 7/01/19 - FSA Insured
(Alternative Minimum Tax)
19,200 Jefferson County Health Facilities Development Corporation, Texas, 8/11 at 100.00 AAA 20,155,008
FHA-Insured Mortgage Revenue Bonds, Baptist Hospital of
Southeast Texas, Series 2001, 5.400%, 8/15/31 -
AMBAC Insured
6,000 Laredo Community College District, Texas, Limited Tax General 8/10 at 100.00 AAA 6,305,940
Obligation Bonds, Series 2001, 5.375%, 8/01/31
(Pre-refunded 8/01/10) - AMBAC Insured
2,000 Laredo Independent School District Public Facilities Corporation, 8/11 at 100.00 AAA 2,059,640
Texas, Lease Revenue Bonds, Series 2004A, 5.000%,
8/01/24 - AMBAC Insured
22,045 North Central Texas Health Facilities Development Corporation, 8/12 at 101.00 AAA 23,243,146
Revenue Bonds, Children's Medical Center of Dallas, Series
2002, 5.250%, 8/15/32 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
105,535 Total Texas 113,888,540
------------------------------------------------------------------------------------------------------------------------------------
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.3% (0.2% OF TOTAL INVESTMENTS)
$ 1,660 Salt Lake City, Utah, Hospital Revenue Refunding Bonds, IHC 5/07 at 100.00 AAA $ 1,662,822
Hospitals Inc., Series 1988A, 8.000%, 5/15/07 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 12.8% (8.0% OF TOTAL INVESTMENTS)
10,730 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 11,465,434
Consolidated System Revenue Refunding Bonds, Series 2001C,
5.650%, 7/01/32 - MBIA Insured (Alternative Minimum Tax)
15,025 Seattle Housing Authority, Washington, GNMA Collateralized Mortgage 11/11 at 105.00 AAA 16,984,561
Loan Low Income Housing Assistance Revenue Bonds, Park
Place Project, Series 2000A, 7.000%, 5/20/42
4,590 Seattle Housing Authority, Washington, GNMA Collateralized Mortgage 9/11 at 102.00 AAA 4,995,802
Loan Low Income Housing Assistance Revenue Bonds, RHF/Esperanza
Apartments Project, Series 2000A, 6.125%, 3/20/42
(Alternative Minimum Tax)
5,000 Seattle, Washington, Municipal Light and Power Revenue Bonds, 12/10 at 100.00 AAA 5,245,050
Series 2000, 5.250%, 12/01/21 - FSA Insured
11,750 Washington Public Power Supply System, Revenue Refunding Bonds, 7/08 at 102.00 AAA 12,143,860
Nuclear Project 1, Series 1998A, 5.125%, 7/01/17 - MBIA Insured
2,500 Washington State Healthcare Facilities Authority, Revenue Bonds, 12/09 at 101.00 AAA 2,625,975
Providence Services, Series 1999, 5.375%, 12/01/19 (Pre-refunded
12/01/09) - MBIA Insured
10,000 Washington State, General Obligation Bonds, Series R-2003A, 5.000%, 1/12 at 100.00 AAA 10,497,600
1/01/19 - MBIA Insured
21,510 Washington State, Motor Vehicle Fuel Tax, General Obligation Bonds, No Opt. Call AAA 8,503,548
Series 2002-03C, 0.000%, 6/01/28 - MBIA Insured (UB)
2,250 Washington, Certificates of Participation, Washington Convention 7/09 at 100.00 AAA 2,315,790
and Trade Center, Series 1999, 5.250%, 7/01/14 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
83,355 Total Washington 74,777,620
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 2.3% (1.5% OF TOTAL INVESTMENTS)
12,845 West Virginia Water Development Authority, Infrastructure Revenue 10/10 at 100.00 AAA 13,587,184
Bonds, Infrastructure and Jobs Development Council Program,
Series 2000A, 5.500%, 10/01/39 (Pre-refunded 10/01/10) -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.7% (0.4% OF TOTAL INVESTMENTS)
1,635 Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 11/14 at 100.00 Aaa 1,767,353
5.000%, 11/01/26 (Pre-refunded 11/01/14) - FSA Insured
545 Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 11/14 at 100.00 Aaa 575,144
5.000%, 11/01/26 - FSA Insured
1,675 Wisconsin Public Power Incorporated System, Power Supply System 7/15 at 100.00 AAA 1,767,361
Revenue Bonds, Series 2005A, 5.000%, 7/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
3,855 Total Wisconsin 4,109,858
------------------------------------------------------------------------------------------------------------------------------------
$ 989,420 Total Long-Term Investments (cost $880,769,834) - 159.2% 929,023,149
============------------------------------------------------------------------------------------------------------------------------
23
Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.5% (0.3% OF TOTAL INVESTMENTS)
$ 700 East Bay Municipal Utility District, Alameda and Contra Costa VMIG-1 $ 700,000
Counties, California, Water System Subordinated Revenue Bonds,
Variable Rate Demand Obligations, Series 2005B-2,
3.830%, 6/01/38 - XLCA Insured (4)
1,600 Idaho Health Facilities Authority, Revenue Bonds, St. Luke's VMIG-1 1,600,000
Regional Medical Center, Variable Rate Demand Obligations, Series
2000, 4.090%, 7/01/30 - FSA Insured (4)
500 Puerto Rico Government Development Bank, Adjustable Refunding VMIG-1 500,000
Bonds, Variable Rate Demand Obligations, Series 1985, 3.710%,
12/01/15 - MBIA Insured (4)
------------------------------------------------------------------------------------------------------------------------------------
$ 2,800 Total Short-Term Investments (cost $2,800,000) 2,800,000
============------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $883,569,834) - 159.7% 931,823,149
---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (9.3)% (54,055,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.1% 23,540,750
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.5)% (318,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 583,308,899
=====================================================================================================================
All of the bonds in the Portfolio of Investments, excluding temporary
investments in short-term municipal 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.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's rating.
Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment grade.
(4) Investment has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term investment. The
rate disclosed is that in effect at the end of the reporting period.
This rate changes periodically based on market conditions or a
specified market index.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
(IF) Inverse floating rate investment.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO)
Portfolio of
INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 10.8% (6.9% OF TOTAL INVESTMENTS)
$ 10,500 Birmingham Waterworks and Sewerage Board, Alabama, Water and 1/17 at 100.00 AAA $ 10,316,250
Sewerage Revenue Bonds, Series 2007A, 4.500%,
1/01/43 - AMBAC Insured (UB)
11,175 Hoover Board of Education, Alabama, Capital Outlay Tax Anticipation 2/11 at 100.00 AAA 11,709,277
Warrants, Series 2001, 5.250%, 2/15/22 - MBIA Insured
Jefferson County, Alabama, Sewer Revenue Capital
Improvement Warrants, Series 1999A:
10,815 5.000%, 2/01/33 (Pre-refunded 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 11,160,647
9,790 5.000%, 2/01/33 (Pre-refunded 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 10,102,888
29,860 5.750%, 2/01/38 (Pre-refunded 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 31,191,159
2,500 Jefferson County, Alabama, Sewer Revenue Capital Improvement 8/12 at 100.00 AAA 2,670,350
Warrants, Series 2002B, 5.125%, 2/01/42 (Pre-refunded
8/01/12) - FGIC Insured
Jefferson County, Alabama, Sewer Revenue Capital
Improvement Warrants, Series 2002D:
425 5.000%, 2/01/38 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 451,444
14,800 5.000%, 2/01/42 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 15,720,856
18,760 Jefferson County, Alabama, Sewer Revenue Capitol Improvement 2/11 at 101.00 AAA 19,779,794
Warrants, Series 2001A, 5.000%, 2/01/41 (Pre-refunded
2/01/11) - FGIC Insured
10,195 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, Series 2/27 at 100.00 AAA 10,206,622
1997A, 5.375%, 2/01/27 - FGIC Insured
5,240 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, Series 2/11 at 101.00 AAA 5,524,846
2003B, 5.000%, 2/01/41 (Pre-refunded 2/01/11) - FGIC Insured
6,000 University of Alabama, Tuscaloosa, General Revenue Bonds, Series 7/14 at 100.00 AAA 6,322,620
2004A, 5.000%, 7/01/29 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
130,060 Total Alabama 135,156,753
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.4% (0.9% OF TOTAL INVESTMENTS)
3,190 Alaska Housing Finance Corporation, Collateralized Veterans 12/09 at 100.00 AAA 3,303,692
Mortgage Program Bonds, First Series 1999A-1, 6.150%, 6/01/39
11,245 Alaska Housing Finance Corporation, General Mortgage Revenue Bonds, 6/09 at 100.00 AAA 11,530,848
Series 1999A, 6.050%, 6/01/39 - MBIA Insured
3,000 Alaska Student Loan Corporation, Student Loan Revenue Bonds, Series 7/08 at 100.00 AAA 3,038,490
1998A, 5.250%, 7/01/14 - AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
17,435 Total Alaska 17,873,030
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.1% (1.3% OF TOTAL INVESTMENTS)
Arizona State University, Certificates of Participation, Resh
Infrastructure Projects, Series 2005A:
2,000 5.000%, 9/01/25 - AMBAC Insured 3/15 at 100.00 AAA 2,113,300
2,000 5.000%, 9/01/27 - AMBAC Insured 3/15 at 100.00 AAA 2,110,560
1,000 Arizona State University, System Revenue Bonds, Series 2005, 7/15 at 100.00 AAA 1,060,110
5.000%, 7/01/27 - AMBAC Insured
1,000 Maricopa County Union High School District 210, Phoenix, Arizona, 7/14 at 100.00 AAA 1,078,220
General Obligation Bonds, Series 2004A, 5.000%, 7/01/22
(Pre-refunded 7/01/14) - FSA Insured
1,150 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/14 at 100.00 AAA 1,212,572
Wastewater System Revenue Bonds, Series 2004, 5.000%,
7/01/27 - MBIA Insured
13,490 Phoenix Civic Improvement Corporation, Arizona, Junior Lien Water 7/15 at 100.00 AAA 13,983,734
System Revenue Bonds, Series 2005, 4.750%, 7/01/25 - MBIA Insured
3,895 Pima County Industrial Development Authority, Arizona, Lease 7/07 at 100.50 AAA 4,003,359
Obligation Revenue Refunding Bonds, Tucson Electric Power
Company, Series 1988A, 7.250%, 7/15/10 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
24,535 Total Arizona 25,561,855
------------------------------------------------------------------------------------------------------------------------------------
25
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.7% (0.4% OF TOTAL INVESTMENTS)
$ 3,660 Arkansas State University, Student Fee Revenue Bonds, Beebe Campus, 9/15 at 100.00 Aaa $ 3,865,253
Series 2006, 5.000%, 9/01/35 - AMBAC Insured
Pulaski County, Arkansas, Hospital Revenue Bonds, Arkansas
Children's Hospital, Series 2005:
2,000 5.000%, 3/01/25 - AMBAC Insured 3/15 at 100.00 AAA 2,099,660
3,000 5.000%, 3/01/30 - AMBAC Insured 3/15 at 100.00 AAA 3,151,530
------------------------------------------------------------------------------------------------------------------------------------
8,660 Total Arkansas 9,116,443
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 32.4% (20.5% OF TOTAL INVESTMENTS)
5,600 Alameda Corridor Transportation Authority, California, Subordinate No Opt. Call AAA 3,189,088
Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/20 -
AMBAC Insured
10,000 California Department of Veterans Affairs, Home Purchase Revenue 6/12 at 101.00 AAA 10,673,900
Bonds, Series 2002A, 5.300%, 12/01/21 - AMBAC Insured
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
30,000 5.375%, 5/01/17 (Pre-refunded 5/01/12) - XLCA Insured 5/12 at 101.00 AAA 32,676,298
25,000 5.375%, 5/01/18 (Pre-refunded 5/01/12) - AMBAC Insured 5/12 at 101.00 AAA 27,230,250
California Department of Water Resources, Water System
Revenue Bonds, Central Valley Project, Series 2005AC:
3,700 5.000%, 12/01/24 - MBIA Insured 12/14 at 100.00 AAA 3,941,906
2,820 5.000%, 12/01/27 - MBIA Insured 12/14 at 100.00 AAA 2,999,831
18,000 California Infrastructure Economic Development Bank, First Lien 1/28 at 100.00 AAA 20,175,480
Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A,
5.000%, 7/01/33 (Pre-refunded 1/01/28) - AMBAC Insured (UB)
California Rural Home Mortgage Finance Authority, GNMA
Mortgage-Backed Securities Program Single Family Mortgage
Revenue Bonds, Series 1996A:
5 7.550%, 11/01/26 (Alternative Minimum Tax) No Opt. Call AAA 5,013
10 7.750%, 5/01/27 (Alternative Minimum Tax) No Opt. Call AAA 10,026
4,500 California, General Obligation Bonds, Series 1998, 5.000%, 10/08 at 101.00 AAA 4,621,815
10/01/19 - FGIC Insured
10,150 California, General Obligation Bonds, Series 2004, 5.000%, 6/01/31 12/14 at 100.00 AAA 10,689,371
- AMBAC Insured
3,500 Coachella Valley Unified School District, Riverside County, 8/15 at 100.00 AAA 3,719,695
California, General Obligation Bonds, Series 2005A,
5.000%, 8/01/26 - FGIC Insured
20,000 Cucamonga County Water District, San Bernardino County, California, 9/11 at 101.00 AAA 21,018,200
Certificates of Participation, Water Shares Purchase, Series
2000, 5.125%, 9/01/35 - FGIC Insured
5,750 East Bay Municipal Utility District, Alameda and Contra Costa 6/15 at 100.00 AAA 6,100,865
Counties, California, Water System Subordinated Revenue Bonds,
Series 2005A, 5.000%, 6/01/27 - MBIA Insured
10,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 10,490,900
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
5.000%, 6/01/38 - FGIC Insured
1,520 Hayward Redevelopment Agency, California, Downtown Redevelopment 3/16 at 100.00 AAA 1,602,597
Project Tax Allocation Bonds, Series 2006, 5.000%,
3/01/36 - XLCA Insured
4,000 Kern Community College District, California, General Obligation 11/15 at 100.00 AAA 4,290,400
Bonds, Series 2005, 5.000%, 11/01/20 - FSA Insured
5,600 Kern Community College District, California, General Obligation No Opt. Call AAA 2,608,928
Bonds, Series 2006, 0.000%, 11/01/24 - FSA Insured
5,000 Long Beach Bond Financing Authority, California, Lease Revenue 11/11 at 101.00 AAA 5,279,050
Refunding Bonds, Long Beach Aquarium of the South Pacific, Series
2001, 5.250%, 11/01/30 - AMBAC Insured
1,875 Los Angeles Department of Water and Power, California, Waterworks 7/16 at 100.00 AAA 1,994,681
Revenue Bonds, Series 2006A-1, 5.000%, 7/01/36 - AMBAC Insured
2,740 Los Angeles Harbors Department, California, Revenue Bonds, Series 8/16 at 102.00 AAA 2,927,169
2006A, 5.000%, 8/01/22 - FGIC Insured (Alternative Minimum Tax)
20,000 Los Angeles Unified School District, California, General Obligation 7/13 at 100.00 AAA 21,347,600
Bonds, Series 2003A, 5.000%, 7/01/21 - FSA Insured
2,000 Los Angeles Unified School District, California, General Obligation 7/15 at 100.00 AAA 2,131,640
Bonds, Series 2005A-2, 5.000%, 7/01/23 - MBIA Insured
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 3,000 Los Angeles Unified School District, California, General Obligation 7/16 at 100.00 AAA $ 3,212,760
Bonds, Series 2006F, 5.000%, 7/01/24 - FGIC Insured
6,205 Port of Oakland, California, Revenue Bonds, Series 2002L, 5.000%, 11/12 at 100.00 AAA 6,431,234
11/01/22 - FGIC Insured (Alternative Minimum Tax)
Poway Redevelopment Agency, California, Tax Allocation Bonds,
Paguay Redevelopment Project, Series 2001:
15,000 5.200%, 6/15/30 - AMBAC Insured 12/11 at 101.00 AAA 15,798,750
5,000 5.125%, 6/15/33 - AMBAC Insured 12/11 at 101.00 AAA 5,233,150
2,035 Redding, California, Electric System Revenue Certificates of 6/15 at 100.00 AAA 2,140,576
Participation, Series 2005, 5.000%, 6/01/30 - FGIC Insured
6,000 Redlands Unified School District, San Bernardino County, 7/13 at 100.00 AAA 6,278,100
California, General Obligation Bonds, Series 2003, 5.000%,
7/01/26 - FSA Insured
2,285 Rio Hondo Community College District, California, General 8/15 at 100.00 AAA 2,448,446
Obligation Bonds, Series 2005A, 5.000%, 8/01/20 - FGIC Insured
2,970 Riverside Community College District, California, General 8/15 at 100.00 AAA 3,177,484
Obligation Bonds, Series 2005, 5.000%, 8/01/22 - FSA Insured
2,500 Sacramento County Sanitation District Financing Authority, 12/15 at 100.00 AAA 2,621,150
California, Revenue Bonds, Series 2005B, 4.750%,
12/01/21 - FGIC Insured
13,710 San Francisco Airports Commission, California, Revenue Refunding 5/11 at 100.00 AAA 14,194,511
Bonds, San Francisco International Airport, Second Series 2001,
Issue 27A, 5.250%, 5/01/26 - MBIA Insured
(Alternative Minimum Tax)
3,030 San Francisco Bay Area Rapid Transit District, California, Sales 7/11 at 100.00 AAA 3,160,714
Tax Revenue Bonds, Series 2001, 5.125%, 7/01/36 - AMBAC Insured
8,470 San Francisco Bay Area Rapid Transit District, California, Sales 7/11 at 100.00 Aaa 8,967,189
Tax Revenue Bonds, Series 2001, 5.125%, 7/01/36 (Pre-refunded
7/01/11) - AMBAC Insured
San Francisco Bay Area Rapid Transit District, California,
Sales Tax Revenue Bonds, Series 2005A:
1,220 5.000%, 7/01/22 - MBIA Insured 7/15 at 100.00 AAA 1,304,851
1,280 5.000%, 7/01/23 - MBIA Insured 7/15 at 100.00 AAA 1,364,250
66,685 San Joaquin Hills Transportation Corridor Agency, Orange County, No Opt. Call AAA 37,629,677
California, Senior Lien Toll Road Revenue Bonds, Series
1993, 0.000%, 1/01/21 (ETM)
San Joaquin Hills Transportation Corridor Agency, Orange County,
California, Toll Road Revenue Refunding Bonds, Series 1997A:
31,615 5.250%, 1/15/30 - MBIA Insured 7/07 at 102.00 AAA 32,277,016
21,500 0.000%, 1/15/32 - MBIA Insured No Opt. Call AAA 7,247,005
12,525 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/10 at 101.00 AAA 13,187,322
Merged Area Redevelopment Project, Series 2002, 5.000%, 8/01/20
(Pre-refunded 8/01/10) - MBIA Insured
19,595 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/17 at 100.00 AAA 18,850,978
Merged Area Redevelopment Project, Series 2006C, 4.250%,
8/01/30 - MBIA Insured (UB)
11,000 Santa Ana Financing Authority, California, Lease Revenue Bonds, No Opt. Call AAA 13,704,240
Police Administration and Housing Facility, Series 1994A, 6.250%,
7/01/24 - MBIA Insured
5,000 Walnut Energy Center Authority, California, Electric Revenue Bonds, 1/14 at 100.00 AAA 5,217,000
Turlock Irrigation District, Series 2004A, 5.000%,
1/01/34 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
432,395 Total California 404,171,106
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.5% (4.1% OF TOTAL INVESTMENTS)
1,080 Arkansas River Power Authority, Colorado, Power Revenue Bonds, 10/16 at 100.00 AAA 1,162,642
Series 2006, 5.250%, 10/01/40 - XLCA Insured
1,900 Aspen, Colorado, Sales Tax Revenue Bonds, Parks and Open Space, 11/15 at 100.00 AAA 2,063,343
Series 2005B, 5.250%, 11/01/24 - FSA Insured
1,000 Colorado Department of Transportation, Certificates of 6/14 at 100.00 AAA 1,050,350
Participation, Series 2004, 5.000%, 6/15/25 - MBIA Insured
4,950 Denver Convention Center Hotel Authority, Colorado, Senior Revenue 12/13 at 100.00 AAA 5,321,448
Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/33
(Pre-refunded 12/01/13) - XLCA Insured
27
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 1,740 Douglas County School District RE1, Douglas and Elbert Counties, 12/14 at 100.00 Aaa $ 1,838,658
Colorado, General Obligation Bonds, Series 2005B, 5.000%,
12/15/28 - FSA Insured
35,995 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AAA 17,792,688
Series 1997B, 0.000%, 9/01/23 - MBIA Insured
30,800 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 102.00 AAA 33,272,314
Series 2000A, 5.750%, 9/01/35 (Pre-refunded 9/01/10) -
MBIA Insured
11,800 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 74.80 AAA 7,782,336
Series 2000B, 0.000%, 9/01/15 (Pre-refunded 9/01/10) -
MBIA Insured
10,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call AAA 4,094,100
Series 2004A, 0.000%, 9/01/27 - MBIA Insured
2,750 Jefferson County School District R1, Colorado, General Obligation 12/14 at 100.00 AAA 2,913,323
Bonds, Series 2004, 5.000%, 12/15/24 - FSA Insured
2,500 Summit County School District RE-1, Summit, Colorado, General 12/14 at 100.00 Aaa 2,652,875
Obligation Bonds, Series 2004B, 5.000%, 12/01/24 - FGIC Insured
1,000 University of Colorado, Enterprise System Revenue Bonds, Series 6/15 at 100.00 AAA 1,058,900
2005, 5.000%, 6/01/30 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
105,515 Total Colorado 81,002,977
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.4% (0.2% OF TOTAL INVESTMENTS)
4,000 Connecticut, General Obligation Bonds, Series 2004D, 5.000%, 12/14 at 100.00 AAA 4,255,320
12/01/24 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.0% (0.6% OF TOTAL INVESTMENTS)
District of Columbia Water and Sewerage Authority,
Subordinate Lien Public Utility Revenue Bonds, Series
2003:
5,000 5.125%, 10/01/24 - FGIC Insured 10/13 at 100.00 AAA 5,303,900
5,000 5.125%, 10/01/25 - FGIC Insured 10/13 at 100.00 AAA 5,303,900
2,000 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 Aaa 1,961,160
Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals
1606, 5.462%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
12,000 Total District of Columbia 12,568,960
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.6% (3.5% OF TOTAL INVESTMENTS)
1,000 Hillsborough County School Board, Florida, Certificates of 7/15 at 100.00 AAA 1,053,020
Participation, Master Lease Program, Series 2005A, 5.000%,
7/01/26 - MBIA Insured
Indian Trace Development District, Florida, Water Management
Special Benefit Assessment Bonds, Series 2005:
645 5.000%, 5/01/25 - MBIA Insured 5/15 at 102.00 Aaa 689,782
1,830 5.000%, 5/01/27 - MBIA Insured 5/15 at 102.00 Aaa 1,952,427
4,425 Jacksonville Economic Development Commission, Florida, Healthcare 11/12 at 100.00 AAA 4,748,379
Facilities Revenue Bonds, Mayo Clinic, Series 2001C, 5.500%,
11/15/36 - MBIA Insured
1,505 Lee County, Florida, Transportation Facilities Revenue Bonds, 10/14 at 100.00 AAA 1,603,728
Series 2004B, 5.000%, 10/01/21 - AMBAC Insured
2,000 Marco Island, Florida, Water Utility System Revenue Bonds, Series 10/13 at 100.00 AAA 2,096,020
2003, 5.000%, 10/01/27 - MBIA Insured
2,150 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA 2,232,646
International Airport, Series 2002A, 5.125%, 10/01/35 - FSA
Insured (Alternative Minimum Tax)
35,920 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA 37,925,770
International Airport, Series 2002, 5.375%, 10/01/32 - FGIC
Insured (Alternative Minimum Tax)
5,320 Miami-Dade County, Florida, Public Facilities Revenue Bonds, 6/15 at 100.00 AAA 5,599,726
Jackson Health System, Series 2005B, 5.000%, 6/01/25 -
MBIA Insured
Northern Palm Beach County Improvement District, Florida,
Revenue Bonds, Water Control and Improvement Development
Unit 9B, Series 2005:
1,290 5.000%, 8/01/23 - MBIA Insured 8/15 at 102.00 AAA 1,383,512
2,145 5.000%, 8/01/29 - MBIA Insured 8/15 at 102.00 AAA 2,285,712
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 2,590 Ocala, Florida, Utility System Revenue Bonds, Series 2005B, 5.000%, 10/15 at 100.00 Aaa $ 2,738,407
10/01/27 - FGIC Insured
2,320 Osceola County, Florida, Transportation Revenue Bonds, Osceola 4/14 at 100.00 Aaa 2,446,765
Parkway, Series 2004, 5.000%, 4/01/23 - MBIA Insured
2,225 Plantation, Florida, Non-Ad Valorem Revenue Refunding and 8/13 at 100.00 Aaa 2,367,289
Improvement Bonds, Series 2003, 5.000%, 8/15/18 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
65,365 Total Florida 69,123,183
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.9% (0.6% OF TOTAL INVESTMENTS)
1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 2004, 11/14 at 100.00 AAA 1,059,280
5.000%, 11/01/22 - FSA Insured
1,520 College Park Business and Industrial Development Authority, 9/14 at 102.00 AAA 1,662,014
Georgia, Revenue Bonds, Public Safety Project, Series 2004,
5.250%, 9/01/23 - MBIA Insured
Fulton County Development Authority, Georgia, Revenue Bonds,
Georgia Tech Molecular Science Building, Series 2004:
1,695 5.250%, 5/01/19 - MBIA Insured 5/14 at 100.00 AAA 1,835,126
1,135 5.250%, 5/01/20 - MBIA Insured 5/14 at 100.00 AAA 1,226,663
4,500 5.000%, 5/01/36 - MBIA Insured 5/14 at 100.00 AAA 4,723,425
1,250 Glynn-Brunswick Memorial Hospital Authority, Georgia, Revenue 8/07 at 101.00 AAA 1,270,513
Bonds, Southeast Georgia Health Systems, Series 1996, 5.250%,
8/01/13 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
11,100 Total Georgia 11,777,021
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.4% (0.3% OF TOTAL INVESTMENTS)
5,000 Hawaii, General Obligation Bonds, Series 2005DF, 5.000%, 7/01/25 - 7/15 at 100.00 AAA 5,307,650
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.3% (0.2% OF TOTAL INVESTMENTS)
415 Idaho Housing Agency, Single Family Mortgage Senior Bonds, Series No Opt. Call Aa1 425,749
1994B-1, 6.750%, 7/01/22
365 Idaho Housing Agency, Single Family Mortgage Senior Bonds, Series No Opt. Call Aa1 375,041
1994B-2, 6.900%, 7/01/26 (Alternative Minimum Tax)
490 Idaho Housing Agency, Single Family Mortgage Senior Bonds, Series 7/07 at 100.00 Aaa 500,883
1995B, 6.600%, 7/01/27 (Alternative Minimum Tax)
Idaho Housing and Finance Association, Grant and Revenue
Anticipation Bonds, Federal Highway Trust Funds, Series 2006:
1,000 5.000%, 7/15/23 - MBIA Insured 7/16 at 100.00 Aaa 1,071,960
1,065 5.000%, 7/15/24 - MBIA Insured 7/16 at 100.00 Aaa 1,139,944
------------------------------------------------------------------------------------------------------------------------------------
3,335 Total Idaho 3,513,577
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 6.5% (4.2% OF TOTAL INVESTMENTS)
1,050 Bedford Park, Illinois, General Obligation Bonds, Series 2004A, 12/14 at 100.00 AAA 1,139,786
5.250%, 12/15/20 - FSA Insured
Chicago, Illinois, Second Lien Passenger Facility Charge Revenue
Refunding Bonds, O'Hare International Airport, Series 2001E:
4,615 5.500%, 1/01/17 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,874,963
4,870 5.500%, 1/01/18 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 5,142,623
7,200 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 7,784,928
O'Hare International Airport, Series 2005A, 5.250%, 1/01/24 -
MBIA Insured
10,000 Illinois Development Finance Authority, Revenue Bonds, Provena 5/08 at 101.00 AAA 10,240,100
Health, Series 1998A, 5.500%, 5/15/21 - MBIA Insured
2,095 Illinois Educational Facilities Authority, Revenue Bonds, Robert 12/07 at 100.00 Aaa 2,117,647
Morris College, Series 2000, 5.800%, 6/01/30 - MBIA Insured
4,500 Illinois Health Facilities Authority, Revenue Bonds, Alexian 1/09 at 101.00 AAA 4,637,070
Brothers Health System, Series 1999, 5.000%, 1/01/19
(Pre-refunded 1/01/09) - FSA Insured
7,000 Illinois Health Facilities Authority, Revenue Bonds, Hospital 6/08 at 101.00 Aaa 7,144,620
Sisters Services Inc. Obligated Group, Series 1998A, 5.000%,
6/01/18 - MBIA Insured
6,000 Illinois Toll Highway Authority, State Toll Highway Authority 7/16 at 100.00 AAA 6,387,660
Revenue Bonds, Series 2006, 5.000%, 1/01/26 - FSA Insured
29
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 22,410 Illinois, General Obligation Bonds, Illinois FIRST Program, Series 2/12 at 100.00 AAA $ 23,391,334
2002, 5.125%, 2/01/27 - FGIC Insured
Schaumburg, Illinois, General Obligation Bonds, Series 2004B:
4,260 5.000%, 12/01/22 - FGIC Insured 12/14 at 100.00 AAA 4,511,936
2,365 5.000%, 12/01/23 - FGIC Insured 12/14 at 100.00 AAA 2,501,697
4,000 Southwestern Illinois Development Authority, School Revenue Bonds, No Opt. Call AAA 1,791,080
Triad School District 2, Madison County, Illinois, Series 2006,
0.000%, 10/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
80,365 Total Illinois 81,665,444
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.8% (1.8% OF TOTAL INVESTMENTS)
2,030 Decatur Township-Marion County Multi-School Building Corporation, 7/13 at 100.00 AAA 2,174,272
Indiana, First Mortgage Bonds, Series 2003, 5.000%, 7/15/20
(Pre-refunded 7/15/13) - FGIC Insured
20,000 Indianapolis Local Public Improvement Bond Bank, Indiana, Series No Opt. Call AAA 8,072,400
1999E, 0.000%, 2/01/28 - AMBAC Insured
3,250 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 3,490,403
Waterworks Project, Series 2002A, 5.250%, 7/01/33 (Pre-refunded
7/01/12) - MBIA Insured
1,340 Monroe-Gregg Grade School Building Corporation, Morgan County, 1/14 at 100.00 AAA 1,438,048
Indiana, First Mortgage Bonds, Series 2004, 5.000%, 1/15/25
(Pre-refunded 1/15/14) - FSA Insured
5,000 Noblesville Redevelopment Authority, Indiana, Economic Development 7/13 at 100.00 AAA 5,217,700
Lease Rental Bonds, Exit 10 Project, Series 2003, 5.000%,
1/15/28 - AMBAC Insured
10,000 Purdue University, Indiana, Student Fee Bonds, Series 2002O, 1/12 at 100.00 AAA 10,493,200
5.000%, 7/01/19 - MBIA Insured
3,705 Whitley County Middle School Building Corporation, Columbia City, 7/13 at 100.00 AAA 3,953,902
Indiana, First Mortgage Bonds, Series 2003, 5.000%,
7/15/16 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
45,325 Total Indiana 34,839,925
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.2% (0.8% OF TOTAL INVESTMENTS)
2,055 Kansas Turnpike Authority, Revenue Bonds, Series 2004A-2, 5.000%, 9/14 at 101.00 AAA 2,193,713
9/01/23 - FSA Insured
Neosho County Unified School District 413, Kansas, General
Obligation Bonds, Series 2006:
2,145 5.000%, 9/01/27 - FSA Insured 9/14 at 100.00 Aaa 2,266,815
4,835 5.000%, 9/01/29 - FSA Insured 9/14 at 100.00 Aaa 5,100,200
5,000 University of Kansas Hospital Authority, Health Facilities Revenue 9/09 at 100.00 AAA 5,217,700
Bonds, KU Health System, Series 1999A, 5.650%, 9/01/29
(Pre-refunded 9/01/09) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
14,035 Total Kansas 14,778,428
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 2.1% (1.3% OF TOTAL INVESTMENTS)
3,870 Kenton County School District Finance Corporation, Kentucky, School 6/14 at 100.00 Aaa 4,116,442
Building Revenue Bonds, Series 2004, 5.000%, 6/01/20 -
MBIA Insured
7,500 Kentucky Turnpike Authority, Economic Development Road Revenue 7/16 at 100.00 AAA 8,014,125
Bonds, Revitalization Project, Series 2006B, 5.000%,
7/01/25 - AMBAC Insured
12,980 Louisville and Jefferson County Metropolitan Sewer District, 11/11 at 101.00 AAA 13,956,615
Kentucky, Sewer and Drainage System Revenue Bonds, Series 2001A,
5.500%, 5/15/34 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
24,350 Total Kentucky 26,087,182
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 5.4% (3.4% OF TOTAL INVESTMENTS)
5,000 DeSoto Parish, Louisiana, Pollution Control Revenue Refunding 9/09 at 102.00 AAA 5,314,150
Bonds, Cleco Utility Group Inc. Project, Series 1999, 5.875%,
9/01/29 - AMBAC Insured
3,025 Lafayette City and Parish, Louisiana, Utilities Revenue Bonds, 11/14 at 100.00 AAA 3,272,082
Series 2004, 5.250%, 11/01/22 - MBIA Insured
1,640 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge 7/14 at 100.00 AAA 1,747,125
General Hospital, Series 2004, 5.250%, 7/01/24 - MBIA Insured
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA (continued)
Louisiana State, Gasoline and Fuels Tax Revenue Bonds,
Series 2005A:
$ 2,400 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AAA $ 2,533,536
4,415 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AAA 4,657,560
5,000 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AAA 5,274,700
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006:
3,295 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 3,378,726
35,840 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AAA 35,257,242
5,985 Orleans Levee District, Louisiana, Levee District General 6/07 at 102.50 AAA 6,143,543
Obligation Bonds, Series 1986, 5.950%, 11/01/15 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
66,600 Total Louisiana 67,578,664
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.3% (0.2% OF TOTAL INVESTMENTS)
3,000 Maine Health and Higher Educational Facilities Authority, Revenue 7/13 at 100.00 AAA 3,139,050
Bonds, Series 2003B, 5.000%, 7/01/28 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.5% (0.3% OF TOTAL INVESTMENTS)
5,345 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 AAA 5,832,678
Bonds, Series 2006A, 5.250%, 9/01/28 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.7% (3.0% OF TOTAL INVESTMENTS)
22,500 Massachusetts Development Finance Authority, Revenue Bonds, WGBH 1/12 at 101.00 AAA 24,316,200
Educational Foundation, Series 2002A, 5.375%, 1/01/42
(Pre-refunded 1/01/12) - AMBAC Insured
11,000 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 11,709,170
Revenue Bonds, Series 2005A, 5.000%, 8/15/23 - FSA Insured
2,100 Massachusetts Water Resources Authority, General Revenue Bonds, 2/17 at 100.00 Aaa 1,999,179
Series 2007, Residual Trust 7039, 5.140%, 8/01/46 -
FSA Insured (IF)
15,000 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, 1/14 at 100.00 AAA 16,302,150
Series 2004, 5.250%, 1/01/23 (Pre-refunded 1/01/14) -
FGIC Insured
University of Massachusetts Building Authority, Senior Lien
Project Revenue Bonds, Series 2004-1:
1,500 5.375%, 11/01/20 (Pre-refunded 11/01/14) - AMBAC Insured 11/14 at 100.00 AAA 1,658,955
2,500 5.375%, 11/01/21 (Pre-refunded 11/01/14) - AMBAC Insured 11/14 at 100.00 AAA 2,764,925
------------------------------------------------------------------------------------------------------------------------------------
54,600 Total Massachusetts 58,750,579
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 6.2% (3.9% OF TOTAL INVESTMENTS)
5,490 Detroit City School District, Wayne County, Michigan, Unlimited Tax No Opt. Call AAA 6,836,368
School Building and Site Improvement Bonds, Series 2001A,
6.000%, 5/01/29 - FSA Insured
6,000 Detroit, Michigan, General Obligation Bonds, Series 2001A-1, 10/11 at 100.00 AAA 6,392,220
5.375%, 4/01/18 - MBIA Insured
7,420 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, 7/07 at 101.00 AAA 7,501,843
Series 1997A, 5.000%, 7/01/27 - MBIA Insured
Detroit, Michigan, Sewerage Disposal System Revenue
Bonds, Series 1999A:
15,825 5.750%, 7/01/26 (Pre-refunded 1/01/10) - FGIC Insured 1/10 at 101.00 AAA 16,795,389
20,000 5.875%, 7/01/27 (Pre-refunded 1/01/10) - FGIC Insured 1/10 at 101.00 AAA 21,289,400
1,085 Grand Rapids Community College, Kent County, Michigan, General 5/13 at 100.00 AAA 1,167,232
Obligation Refunding Bonds, Series 2003, 5.250%, 5/01/20 -
AMBAC Insured
6,850 Wayne County, Michigan, Airport Revenue Bonds, Detroit Metropolitan 12/08 at 101.00 AAA 7,061,186
Wayne County Airport, Series 1998A, 5.375%, 12/01/15 - MBIA
Insured (Alternative Minimum Tax)
10,000 Wayne County, Michigan, Limited Tax General Obligation Airport 12/11 at 101.00 AAA 10,613,300
Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport,
Series 2001A, 5.250%, 12/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
72,670 Total Michigan 77,656,938
------------------------------------------------------------------------------------------------------------------------------------
31
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.2% (0.7% OF TOTAL INVESTMENTS)
$ 13,020 Saint Paul Housing and Redevelopment Authority, Minnesota, 12/11 at 102.00 Aaa $ 14,719,501
Multifamily Housing Revenue Bonds, Marian Center Project, Series
2001A, 6.450%, 6/20/43 (Pre-refunded 12/20/11)
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.2% (0.1% OF TOTAL INVESTMENTS)
Nebraska Public Power District, General Revenue Bonds, Series 2005A:
1,000 5.000%, 1/01/24 - FSA Insured 1/15 at 100.00 AAA 1,059,670
1,000 5.000%, 1/01/25 - FSA Insured 1/15 at 100.00 AAA 1,059,000
------------------------------------------------------------------------------------------------------------------------------------
2,000 Total Nebraska 2,118,670
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 8.3% (5.3% OF TOTAL INVESTMENTS)
8,475 Clark County, Nevada, General Obligation Bank Bonds, Southern 12/12 at 100.00 AAA 8,852,053
Nevada Water Authority Loan, Series 2002, 5.000%,
6/01/32 - MBIA Insured
3,630 Clark County, Nevada, General Obligation Bank Bonds, Southern 12/12 at 100.00 Aaa 3,868,890
Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32
(Pre-refunded 12/01/12) - MBIA Insured
7,370 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/14 at 100.00 AAA 7,805,125
Series 2004A-2, 5.125%, 7/01/25 - FGIC Insured
Director of Nevada State Department of Business and
Industry, Revenue Bonds, Las Vegas Monorail Project, First
Tier, Series 2000:
15,000 5.625%, 1/01/34 - AMBAC Insured 1/10 at 102.00 AAA 15,907,800
13,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 13,414,310
14,985 Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 6/12 at 100.00 AAA 15,924,260
5.375%, 6/01/32 - FGIC Insured
25,300 Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 6/12 at 100.00 AAA 27,265,810
5.375%, 6/01/32 (Pre-refunded 6/01/12) - FGIC Insured
10,000 Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, Reno 6/12 at 100.00 AAA 10,642,900
Transportation Rail Access Corridor Project, Series 2002, 5.125%,
6/01/27 (Pre-refunded 6/01/12) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
97,760 Total Nevada 103,681,148
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.4% (1.5% OF TOTAL INVESTMENTS)
Essex County Improvement Authority, New Jersey, Guaranteed Revenue
Bonds, Project Consolidation, Series 2004:
2,000 5.125%, 10/01/21 - MBIA Insured 10/14 at 100.00 Aaa 2,153,800
2,250 5.125%, 10/01/22 - MBIA Insured 10/14 at 100.00 Aaa 2,423,025
New Jersey Economic Development Authority, Revenue Bonds,
Motor Vehicle Surcharge, Series 2004A:
3,850 5.000%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 4,107,488
3,850 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 4,064,368
New Jersey Turnpike Authority, Revenue Bonds, Series 2003A:
8,250 5.000%, 1/01/19 - FGIC Insured 7/13 at 100.00 AAA 8,768,513
2,000 5.000%, 1/01/23 - FSA Insured 7/13 at 100.00 AAA 2,102,700
3,320 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 5.000%, 1/15 at 100.00 AAA 3,544,930
1/01/21 - FSA Insured
2,795 Rutgers State University, New Jersey, Revenue Bonds, Series 2004E, 5/14 at 100.00 AAA 2,978,296
5.000%, 5/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
28,315 Total New Jersey 30,143,120
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.3% (0.2% OF TOTAL INVESTMENTS)
3,660 San Juan County, New Mexico, Subordinate Gross Receipts Tax Revenue 6/15 at 100.00 AAA 3,876,416
Bonds, Series 2005, 5.000%, 6/15/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 9.1% (5.8% OF TOTAL INVESTMENTS)
1,880 Dormitory Authority of the State of New York, FHA-Insured Mortgage 2/15 at 100.00 AAA 1,990,638
Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%,
8/01/23 - FGIC Insured
3,335 Dormitory Authority of the State of New York, State Personal Income 3/15 at 100.00 AAA 3,538,568
Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 - AMBAC Insured
8,820 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 8,698,725
Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 8,685 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA $ 8,924,619
Revenue Bonds, Series 1998A, 5.300%, 12/01/19 (Pre-refunded
6/01/08) - FSA Insured
12,500 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 AAA 13,321,375
Revenue Bonds, Series 2006A, 5.000%, 12/01/25 - FGIC Insured
6,900 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 AAA 6,683,478
Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA Insured (UB)
Metropolitan Transportation Authority, New York, State Service
Contract Refunding Bonds, Series 2002A:
2,500 5.000%, 7/01/21 - FGIC Insured 7/12 at 100.00 AAA 2,642,475
5,000 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00 AAA 5,255,000
10,525 New York City, New York, General Obligation Bonds, Fiscal Series 4/15 at 100.00 AAA 11,156,079
2005M, 5.000%, 4/01/26 - FGIC Insured
5,000 New York City, New York, General Obligation Bonds, Fiscal Series 9/15 at 100.00 AAA 5,350,850
2006F-1, 5.000%, 9/01/21 - AMBAC Insured
5,000 New York State Thruway Authority, General Revenue Bonds, Series 1/15 at 100.00 AAA 5,298,350
2005F, 5.000%, 1/01/26 - AMBAC Insured
3,000 New York State Thruway Authority, General Revenue Bonds, Series 7/15 at 100.00 AAA 3,101,400
2005G, 4.750%, 1/01/29 - FSA Insured
New York State Thruway Authority, Highway and Bridge Trust
Fund Bonds, Second Generation, Series 2005B:
3,770 5.000%, 4/01/21 - AMBAC Insured 10/15 at 100.00 AAA 4,033,221
7,000 5.000%, 4/01/22 - AMBAC Insured 10/15 at 100.00 AAA 7,489,790
3,650 New York State Urban Development Corporation, Service Contract 3/15 at 100.00 AAA 3,875,315
Revenue Bonds, Series 2005B, 5.000%, 3/15/25 - FSA Insured
New York State Urban Development Corporation, State Personal Income
Tax Revenue Bonds, Series 2004A-1:
1,000 5.000%, 3/15/23 - FGIC Insured 3/14 at 100.00 AAA 1,054,320
5,000 5.000%, 3/15/25 - FGIC Insured 3/14 at 100.00 AAA 5,274,650
15,000 Triborough Bridge and Tunnel Authority, New York, Subordinate Lien 11/12 at 100.00 AAA 15,685,650
General Purpose Revenue Refunding Bonds, Series 2002E, 5.000%,
11/15/32 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
108,565 Total New York 113,374,503
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.4% (0.9% OF TOTAL INVESTMENTS)
Mooresville, North Carolina, Enterprise System Revenue
Bonds, Series 2004:
2,115 5.000%, 5/01/22 - FGIC Insured 5/14 at 100.00 AAA 2,247,039
2,575 5.000%, 5/01/26 - FGIC Insured 5/14 at 100.00 AAA 2,715,647
5,000 North Carolina Municipal Power Agency 1, Catawba Electric Revenue 1/13 at 100.00 AAA 5,376,950
Bonds, Series 2003A, 5.250%, 1/01/16 - FSA Insured
Raleigh Durham Airport Authority, North Carolina, Airport
Revenue Bonds, Series 2005A:
3,205 5.000%, 5/01/23 - AMBAC Insured 5/15 at 100.00 Aaa 3,398,967
3,295 5.000%, 5/01/24 - AMBAC Insured 5/15 at 100.00 Aaa 3,489,833
------------------------------------------------------------------------------------------------------------------------------------
16,190 Total North Carolina 17,228,436
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.6% (0.4% OF TOTAL INVESTMENTS)
Grand Forks, North Dakota, Sales Tax Revenue Bonds,
Alerus Project, Series 2005A:
2,195 5.000%, 12/15/22 - MBIA Insured 12/15 at 100.00 Aaa 2,345,928
1,355 5.000%, 12/15/23 - MBIA Insured 12/15 at 100.00 Aaa 1,445,324
3,000 5.000%, 12/15/24 - MBIA Insured 12/15 at 100.00 Aaa 3,195,480
------------------------------------------------------------------------------------------------------------------------------------
6,550 Total North Dakota 6,986,732
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.6% (2.9% OF TOTAL INVESTMENTS)
3,485 Cincinnati City School District, Hamilton County, Ohio, General No Opt. Call AAA 3,984,157
Obligation Bonds, Series 2006, 5.250%, 12/01/23 - FGIC Insured
33
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OHIO (continued)
$ 2,650 Cleveland State University, Ohio, General Receipts Bonds, Series 6/14 at 100.00 AAA $ 2,864,438
2004, 5.250%, 6/01/24 - FGIC Insured
2,000 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 2,196,000
Obligation Bonds, Series 2004, 5.250%, 12/01/25
(Pre-refunded 12/01/14) - FSA Insured
2,385 Columbus, Ohio, Tax Increment Financing Bonds, Easton Project, 6/14 at 100.00 AAA 2,507,517
Series 2004A, 5.000%, 12/01/22 - AMBAC Insured
2,205 Hamilton City School District, Ohio, General Obligation Bonds, 6/15 at 100.00 Aaa 2,341,115
Series 2005, 5.000%, 12/01/24 - MBIA Insured
19,600 Hamilton County, Ohio, Sales Tax Bonds, Subordinate, Series 2006, 12/16 at 100.00 Aaa 19,018,860
4.250%, 12/01/32 - AMBAC Insured (UB)
20,100 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica Healthcare 11/09 at 101.00 AAA 20,933,145
Obligated Group, Series 1999, 5.375%, 11/15/39 - AMBAC Insured
3,000 Ross Local School District, Butler County, Ohio, General Obligation 12/13 at 100.00 Aaa 3,223,290
Bonds, Series 2003, 5.000%, 12/01/28 (Pre-refunded 12/01/13) -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
55,425 Total Ohio 57,068,522
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.5% (1.0% OF TOTAL INVESTMENTS)
3,500 Oklahoma Capitol Improvement Authority, State Facilities Revenue 7/15 at 100.00 AAA 3,720,360
Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured
4,220 Oklahoma Housing Finance Agency, GNMA Collateralized Single Family No Opt. Call AAA 4,515,822
Mortgage Revenue Bonds, Series 1987A, 7.997%, 8/01/18
(Alternative Minimum Tax)
5,245 Oklahoma State Industries Authority, Revenue Bonds, Oklahoma 2/11 at 100.00 Aaa 5,474,731
Medical Research Foundation, Series 2001, 5.250%, 2/01/21 -
AMBAC Insured
4,880 University of Oklahoma, Student Housing Revenue Bonds, Series 2004, 7/14 at 100.00 Aaa 5,190,710
5.000%, 7/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
17,845 Total Oklahoma 18,901,623
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.8% (0.5% OF TOTAL INVESTMENTS)
Oregon Department of Administrative Services, Certificates
of Participation, Series 2005A:
2,535 5.000%, 5/01/25 - FSA Insured 5/15 at 100.00 AAA 2,677,797
2,115 5.000%, 5/01/30 - FSA Insured 5/15 at 100.00 AAA 2,225,318
3,470 Oregon Department of Administrative Services, Certificates of 11/15 at 100.00 AAA 3,719,840
Participation, Series 2005B, 5.000%, 11/01/18 - FGIC Insured
1,245 Oregon Housing and Community Services Department, Single Family 7/07 at 100.00 Aa2 1,248,075
Mortgage Revenue Bonds, Series 1995A, 6.450%, 7/01/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,365 Total Oregon 9,871,030
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.1% (2.0% OF TOTAL INVESTMENTS)
7,925 Commonwealth Financing Authority, Pennsylvania, State Appropriation 6/16 at 100.00 AAA 8,458,115
Lease Bonds, Series 2006A, 5.000%, 6/01/26 - FSA Insured
1,800 Pennsylvania Higher Educational Facilities Authority, Revenue 5/15 at 100.00 AAA 1,905,174
Bonds, Drexel University, Series 2005A, 5.000%, 5/01/28 -
MBIA Insured
11,730 Pennsylvania Public School Building Authority, Lease Revenue Bonds, 12/16 at 100.00 AAA 11,685,895
School District of Philadelphia, Series 2006B, 4.500%,
6/01/32 - FSA Insured (UB)
2,625 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 6/16 at 100.00 AAA 2,803,631
2006A, 5.000%, 12/01/26 - AMBAC Insured
6,335 Radnor Township School District, Delaware County, Pennsylvania, 8/15 at 100.00 Aaa 6,711,426
General Obligation Bonds, Series 2005B, 5.000%, 2/15/30 -
FSA Insured
Reading School District, Berks County, Pennsylvania, General
Obligation Bonds, Series 2005:
3,285 5.000%, 1/15/22 - FSA Insured 1/16 at 100.00 AAA 3,513,143
3,450 5.000%, 1/15/23 - FSA Insured 1/16 at 100.00 AAA 3,684,393
------------------------------------------------------------------------------------------------------------------------------------
37,150 Total Pennsylvania 38,761,777
------------------------------------------------------------------------------------------------------------------------------------
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.5% (0.3% OF TOTAL INVESTMENTS)
$ 2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/15 at 100.00 AAA $ 2,646,700
2005RR, 5.000%, 7/01/30 - XLCA Insured
2,000 Puerto Rico Highway and Transportation Authority, Highway Revenue 7/13 at 100.00 AAA 2,162,040
Bonds, Series 2003G, 5.250%, 7/01/19 - FGIC Insured
1,550 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, 8/01/21 No Opt. Call AAA 1,752,508
- CIFG Insured
------------------------------------------------------------------------------------------------------------------------------------
6,050 Total Puerto Rico 6,561,248
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.0% (1.3% OF TOTAL INVESTMENTS)
2,195 Providence Housing Development Corporation, Rhode Island, 7/07 at 100.00 AAA 2,262,694
FHA-Insured Section 8 Assisted Mortgage Revenue Refunding Bonds,
Barbara Jordan Apartments, Series 1994A, 6.750%, 7/01/25 -
MBIA Insured
20,475 Rhode Island Depositors Economic Protection Corporation, Special 2/11 at 100.00 AAA 21,587,407
Obligation Refunding Bonds, Series 1993B, 5.250%, 8/01/21
(Pre-refunded 2/01/11) - MBIA Insured
1,405 Rhode Island Health and Educational Building Corporation, Higher 9/14 at 100.00 Aaa 1,544,502
Education Auxiliary Enterprise Revenue Bonds, Series 2004A,
5.500%, 9/15/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
24,075 Total Rhode Island 25,394,603
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.0% (2.6% OF TOTAL INVESTMENTS)
10,000 Beaufort County, South Carolina, Tax Increment Bonds, New River 12/12 at 100.00 AAA 10,444,900
Redevelopment Project, Series 2002, 5.000%, 6/01/27 -
MBIA Insured
Medical University Hospital Authority, South Carolina, FHA-Insured
Mortgage Revenue Bonds, Series 2004A:
2,000 5.250%, 8/15/22 - MBIA Insured 8/14 at 100.00 AAA 2,140,320
2,105 5.250%, 8/15/23 - MBIA Insured 8/14 at 100.00 AAA 2,251,319
4,855 Piedmont Municipal Power Agency, South Carolina, Electric Revenue No Opt. Call AAA 3,717,619
Bonds, Series 1988A, 0.000%, 1/01/13 - AMBAC Insured (ETM)
9,190 Piedmont Municipal Power Agency, South Carolina, Electric Revenue 7/09 at 76.63 AAA 6,497,330
Bonds, Series 1988A, 0.000%, 1/01/13 (Pre-refunded 7/01/09) -
AMBAC Insured
7,955 Piedmont Municipal Power Agency, South Carolina, Electric Revenue No Opt. Call AAA 6,063,778
Bonds, Series 1988A, 0.000%, 1/01/13 - AMBAC Insured
8,000 South Carolina JOBS Economic Development Authority, Industrial 11/12 at 100.00 AAA 8,457,840
Revenue Bonds, South Carolina Electric and Gas Company, Series
2002A, 5.200%, 11/01/27 - AMBAC Insured
10,000 South Carolina JOBS Economic Development Authority, Industrial 11/12 at 100.00 AAA 10,619,100
Revenue Bonds, South Carolina Electric and Gas Company, Series
2002B, 5.450%, 11/01/32 - AMBAC Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
54,105 Total South Carolina 50,192,206
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.5% (0.3% OF TOTAL INVESTMENTS)
6,455 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/11 at 100.00 AAA 6,782,914
Revenue Bonds, Series 2001A, 5.500%, 3/01/18 - FSA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 15.7% (9.9% OF TOTAL INVESTMENTS)
22,650 Brazos River Authority, Texas, Revenue Refunding Bonds, Houston 5/08 at 102.00 AAA 23,370,723
Industries Inc., Series 1998C, 5.125%, 5/01/19 - AMBAC Insured
521 Capital Area Housing Finance Corporation, Texas, FNMA Backed Single 4/12 at 106.00 AAA 532,696
Family Mortgage Revenue Refunding Bonds, Series 2002A-2, 6.300%,
4/01/35 - AMBAC Insured (Alternative Minimum Tax)
12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 AAA 13,133,625
Bonds, Series 2000A, 6.125%, 11/01/35 - FGIC Insured
(Alternative Minimum Tax)
Harris County, Texas, Toll Road Senior Lien Revenue
Bonds, Series 1989:
9,000 0.000%, 8/15/18 (Pre-refunded 8/15/09) - AMBAC Insured 8/09 at 53.84 AAA 4,448,790
39,000 0.000%, 8/15/19 (Pre-refunded 8/15/09) - AMBAC Insured 8/09 at 50.26 AAA 17,996,160
7,280 0.000%, 8/15/20 (Pre-refunded 8/15/09) - AMBAC Insured 8/09 at 46.91 AAA 3,135,933
5,085 0.000%, 8/15/21 (Pre-refunded 8/15/09) - AMBAC Insured 8/09 at 43.80 AAA 2,044,729
35
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 25,000 Harris County-Houston Sports Authority, Texas, Junior Lien Revenue 11/11 at 100.00 AAA $ 26,296,250
Refunding Bonds, Series 2001B, 5.250%, 11/15/40 - MBIA Insured
4,671 Houston Housing Finance Corporation, Texas, GNMA Collateralized 9/11 at 105.00 Aaa 4,999,465
Mortgage Multifamily Housing Revenue Bonds, RRG Apartments
Project, Series 2001, 6.350%, 3/20/42
Houston, Texas, First Lien Combined Utility System Revenue
Bonds, Series 2004A:
4,000 5.250%, 5/15/24 - FGIC Insured 5/14 at 100.00 AAA 4,316,880
5,000 5.250%, 5/15/25 - MBIA Insured 5/14 at 100.00 AAA 5,396,100
6,570 Houston, Texas, General Obligation Public Improvement Bonds, 3/11 at 100.00 AAA 6,958,681
Series 2001A, 5.375%, 3/01/19 (Pre-refunded 3/01/11) -
FSA Insured
17,500 Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, 9/11 at 100.00 AAA 18,369,050
Convention and Entertainment Project, Series 2001B, 5.250%,
9/01/33 - AMBAC Insured
4,170 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/10 at 100.00 AAA 4,368,158
Series 2000B, 5.500%, 7/01/30 - FSA Insured
23,865 Jefferson County Health Facilities Development Corporation, Texas, 8/11 at 100.00 AAA 25,175,666
FHA-Insured Mortgage Revenue Bonds, Baptist Hospital of Southeast
Texas, Series 2001, 5.500%, 8/15/41 - AMBAC Insured
140 Lower Colorado River Authority, Texas, Revenue Refunding and 5/11 at 100.00 Aaa 146,745
Improvement Bonds, Series 2001A, 5.000%, 5/15/21
(Pre-refunded 5/15/11) - MBIA Insured
8,065 Lower Colorado River Authority, Texas, Revenue Refunding and 5/11 at 100.00 AAA 8,410,505
Improvement Bonds, Series 2001A, 5.000%, 5/15/21 - MBIA Insured
Port of Houston Authority, Harris County, Texas, General
Obligation Port Improvement Bonds, Series 2001B:
3,205 5.500%, 10/01/18 - FGIC Insured (Alternative Minimum Tax) 10/11 at 100.00 AAA 3,379,929
3,375 5.500%, 10/01/19 - FGIC Insured (Alternative Minimum Tax) 10/11 at 100.00 AAA 3,559,208
7,205 San Antonio, Texas, Airport System Improvement Revenue Bonds, 7/11 at 101.00 AAA 7,646,955
Series 2001, 5.375%, 7/01/15 - FGIC Insured
(Alternative Minimum Tax)
Tarrant County Health Facilities Development Corporation, Texas,
Revenue Bonds, Texas Health Resources System, Series 1997A:
2,900 5.250%, 2/15/22 - MBIA Insured 2/08 at 102.00 AAA 2,985,840
6,655 5.000%, 2/15/26 - MBIA Insured 2/08 at 101.00 AAA 6,762,079
165 Tarrant County Health Facilities Development Corporation, Texas, 2/08 at 101.00 Aaa 168,317
Revenue Bonds, Texas Health Resources System, Series 1997A,
5.000%, 2/15/26 (Pre-refunded 2/15/08) - MBIA Insured
1,840 Ysleta Independent School District Public Facility Corporation, 11/09 at 100.00 AAA 1,900,978
Texas, Lease Revenue Refunding Bonds, Series 2001, 5.375%,
11/15/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
220,362 Total Texas 195,503,462
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.2% (0.1% OF TOTAL INVESTMENTS)
2,000 Clearfield City, Utah, Sales Tax Revenue Bonds, Series 2003, 7/13 at 100.00 AAA 2,140,440
5.000%, 7/01/28 (Pre-refunded 7/01/13) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.0% (1.3% OF TOTAL INVESTMENTS)
8,000 Greater Richmond Convention Center Authority, Virginia, Hotel Tax 6/15 at 100.00 AAA 8,444,800
Revenue Bonds, Series 2005, 5.000%, 6/15/30 - MBIA Insured
1,035 Loudoun County Industrial Development Authority, Virginia, Lease 6/14 at 100.00 AAA 1,120,470
Revenue Bonds, Public Safety Facilities, Series 2003A,
5.250%, 12/15/20 - FSA Insured
4,840 Metropolitan Washington D.C. Airports Authority, Airport System 10/11 at 101.00 AAA 5,144,581
Revenue Bonds, Series 2001A, 5.500%, 10/01/19 - MBIA Insured
(Alternative Minimum Tax)
10,000 Virginia Housing Development Authority, Commonwealth Mortgage 7/11 at 100.00 AAA 10,485,500
Bonds, Series 2001H-1, 5.375%, 7/01/36 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
23,875 Total Virginia 25,195,351
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 2.2% (1.4% OF TOTAL INVESTMENTS)
2,500 Grant County Public Utility District 2, Washington, Revenue Bonds, 1/15 at 100.00 AAA 2,627,325
Wanapum Hydroelectric Development, Series 2005A, 5.000%,
1/01/29 - FGIC Insured
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 3,500 King County School District 401, Highline, Washington, General 12/14 at 100.00 AAA $ 3,695,300
Obligation Bonds, Series 2004, 5.000%, 10/01/24 - FGIC Insured
3,195 Kitsap County, Washington, Limited Tax General Obligation Bonds, 7/10 at 100.00 AAA 3,366,795
Series 2000, 5.500%, 7/01/25 (Pre-refunded 7/01/10) -
AMBAC Insured
4,250 Snohomish County Public Utility District 1, Washington, Generation No Opt. Call AAA 4,960,770
System Revenue Bonds, Series 1989, 6.650%, 1/01/16 -
FGIC Insured (ETM)
Tacoma, Washington, Solid Waste Utility Revenue Refunding
Bonds, Series 2006:
3,890 5.000%, 12/01/24 - XLCA Insured 12/16 at 100.00 AAA 4,131,802
4,085 5.000%, 12/01/25 - XLCA Insured 12/16 at 100.00 AAA 4,335,574
4,290 5.000%, 12/01/26 - XLCA Insured 12/16 at 100.00 AAA 4,549,674
------------------------------------------------------------------------------------------------------------------------------------
25,710 Total Washington 27,667,240
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.8% (0.5% OF TOTAL INVESTMENTS)
10,000 Harrison County Commission, West Virginia, Solid Waste Disposal 5/07 at 100.00 AAA 10,131,800
Revenue Bonds, West Penn Power Company - Harrison Station, Series
1993B, 6.300%, 5/01/23 - MBIA Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.0% (2.6% OF TOTAL INVESTMENTS)
18,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/07 at 102.00 AAA 18,414,180
Bonds, Aurora Healthcare Inc., Series 1997, 5.250%,
8/15/17 - MBIA Insured
15,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/07 at 102.00 AAA 15,320,850
Bonds, Marshfield Clinic, Series 1997, 5.750%, 2/15/27 -
MBIA Insured
1,675 Wisconsin Public Power Incorporated System, Power Supply System 7/15 at 100.00 AAA 1,767,360
Revenue Bonds, Series 2005A, 5.000%, 7/01/30 - AMBAC Insured
290 Wisconsin, General Obligation Bonds, Series 2004-3, 5.250%, 5/14 at 100.00 AAA 313,235
5/01/20 - FGIC Insured
2,600 Wisconsin, General Obligation Bonds, Series 2004-3, 5.250%, 5/01/20 5/14 at 100.00 Aaa 2,839,070
(Pre-refunded 5/01/14) - FGIC Insured
10,945 Wisconsin, General Obligation Bonds, Series 2004-4, 5.000%, 5/14 at 100.00 AAA 11,626,216
5/01/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
48,510 Total Wisconsin 50,280,911
------------------------------------------------------------------------------------------------------------------------------------
$ 2,002,677 Total Investments (cost $1,852,064,037) - 157.6% 1,966,338,416
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (7.2)% (89,495,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.1% 50,786,665
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.5)% (680,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $1,247,630,081
=====================================================================================================================
All of the bonds in the Portfolio of Investments, excluding temporary
investments in short-term municipal 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.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's rating.
Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment grade.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
(IF) Inverse floating rate investment.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
37
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF)
Portfolio of
INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.1% (0.7% OF TOTAL INVESTMENTS)
$ 3,200 Auburn, Alabama, General Obligation Warrants, Series 2005, 5.000%, 8/15 at 100.00 AAA $ 3,373,376
8/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.5% (1.0% OF TOTAL INVESTMENTS)
4,370 Phoenix Civic Improvement Corporation, Arizona, Junior Lien Water 7/15 at 100.00 AAA 4,529,942
System Revenue Bonds, Series 2005, 4.750%, 7/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.5% (0.9% OF TOTAL INVESTMENTS)
4,020 Northwest Community College District, Arkansas, General Obligation 5/15 at 100.00 AAA 4,272,737
Bonds, Series 2005, 5.000%, 5/15/23 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 34.9% (22.0% OF TOTAL INVESTMENTS)
ABAG Finance Authority for Non-Profit Corporations,
California, Insured Certificates of Participation,
Children's Hospital Medical Center of Northern California,
Series 1999:
6,750 5.875%, 12/01/19 - AMBAC Insured 12/09 at 101.00 AAA 7,176,060
10,000 6.000%, 12/01/29 - AMBAC Insured 12/09 at 101.00 AAA 10,617,200
1,000 California Department of Water Resources, Water System Revenue 12/14 at 100.00 AAA 1,063,230
Bonds, Central Valley Project, Series 2005AC, 5.000%,
12/01/26 - MBIA Insured
1,250 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 AAA 1,334,138
Revenue Bonds, Pacific Gas and Electric Company, Series 1996A,
5.350%, 12/01/16 - MBIA Insured (Alternative Minimum Tax)
4,775 Clovis Unified School District, Fresno County, California, General No Opt. Call AAA 2,161,404
Obligation Bonds, Series 2001A, 0.000%, 8/01/25 - FGIC Insured
1,005 Folsom Cordova Unified School District, Sacramento County, 10/14 at 100.00 AAA 1,070,928
California, General Obligation Bonds, School Facilities
Improvement District 2, Series 2004B, 5.000%, 10/01/26 -
FSA Insured
1,150 Kern Community College District, California, General Obligation No Opt. Call AAA 561,292
Bonds, Series 2006, 0.000%, 11/01/23 - FSA Insured
85 Kern County Housing Authority, California, GNMA Guaranteed No Opt. Call AAA 87,511
Tax-Exempt Mortgage Obligation Bonds, Series 1994A-I, 7.150%,
12/30/24 (Alternative Minimum Tax)
55 Kern County Housing Authority, California, GNMA Guaranteed No Opt. Call AAA 56,761
Tax-Exempt Mortgage Obligation Bonds, Series 1994A-III, 7.450%,
6/30/25 (Alternative Minimum Tax)
4,630 La Verne-Grand Terrace Housing Finance Agency, California, Single No Opt. Call AAA 6,125,305
Family Residential Mortgage Revenue Bonds, Series 1984A,
10.250%, 7/01/17 (ETM)
5,000 Ontario Redevelopment Financing Authority, San Bernardino County, No Opt. Call AAA 6,819,000
California, Revenue Refunding Bonds, Redevelopment Project 1,
Series 1995, 7.400%, 8/01/25 - MBIA Insured
8,880 Pomona, California, GNMA/FHLMC Collateralized Single Family No Opt. Call AAA 11,649,228
Mortgage Revenue Refunding Bonds, Series 1990B, 7.500%,
8/01/23 (ETM)
12,070 San Bernardino County, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 14,015,081
Program Single Family Home Mortgage Revenue Bonds, Series 1988A,
8.300%, 9/01/14 (Alternative Minimum Tax) (ETM)
9,850 San Bernardino, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 12,597,559
Program Single Family Mortgage Revenue Refunding Bonds, Series
1990A, 7.500%, 5/01/23 (ETM)
4,300 San Francisco Airports Commission, California, Revenue Refunding 5/11 at 100.00 AAA 4,458,756
Bonds, San Francisco International Airport, Second Series 2001,
Issue 27A, 5.125%, 5/01/19 - MBIA Insured
(Alternative Minimum Tax)
25,150 San Joaquin Hills Transportation Corridor Agency, Orange County, No Opt. Call AAA 8,477,311
California, Toll Road Revenue Refunding Bonds, Series 1997A,
0.000%, 1/15/32 - MBIA Insured (UB)
2,000 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/14 at 100.00 AAA 2,163,640
Merged Area Redevelopment Project, Series 2004A, 5.250%,
8/01/19 - MBIA Insured
4,475 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/17 at 100.00 AAA 4,305,084
Merged Area Redevelopment Project, Series 2006C, 4.250%,
8/01/30 - MBIA Insured (UB)
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 4,455 San Mateo County Community College District, California, General No Opt. Call AAA $ 2,427,619
Obligation Bonds, Series 2006B, 0.000%, 9/01/21 - MBIA Insured
1,815 University of California, General Revenue Bonds, Series 2005G, 5/13 at 101.00 AAA 1,865,802
4.750%, 5/15/31 - MBIA Insured
3,600 Ventura County Community College District, California, General 8/15 at 100.00 AAA 3,820,824
Obligation Bonds, Series 2005B, 5.000%, 8/01/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
112,295 Total California 102,853,733
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 7.2% (4.5% OF TOTAL INVESTMENTS)
1,500 Adams and Arapahoe Counties Joint School District 28J, Aurora, 12/13 at 100.00 AAA 1,610,730
Colorado, General Obligation Bonds, Series 2003A, 5.125%,
12/01/21 - FSA Insured
2,500 Denver City and County, Colorado, Airport System Revenue Refunding 11/12 at 100.00 AAA 2,668,700
Bonds, Series 2002E, 5.500%, 11/15/18 - FGIC Insured
(Alternative Minimum Tax)
6,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 102.00 AAA 6,481,620
Series 2000A, 5.750%, 9/01/29 (Pre-refunded 9/01/10) -
MBIA Insured
4,405 Garfield, Eagle and Pitkin Counties School District RE-1, Roaring 12/14 at 100.00 AAA 4,666,613
Fork, Colorado, General Obligation Bonds, Series 2005A, 5.000%,
12/15/24 - FSA Insured
2,065 Jefferson County School District R1, Colorado, General Obligation 12/14 at 100.00 AAA 2,187,640
Bonds, Series 2004, 5.000%, 12/15/24 - FSA Insured
1,390 Teller County School District RE-2, Woodland Park, Colorado, 12/14 at 100.00 AAA 1,482,949
General Obligation Bonds, Series 2004, 5.000%, 12/01/22 -
MBIA Insured
1,000 University of Colorado, Enterprise System Revenue Bonds, Series 6/12 at 100.00 AAA 1,061,310
2002A, 5.000%, 6/01/19 (Pre-refunded 6/01/12) - FGIC Insured
1,000 University of Colorado, Enterprise System Revenue Bonds, Series 6/15 at 100.00 AAA 1,058,900
2005, 5.000%, 6/01/30 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
19,860 Total Colorado 21,218,462
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.2% (0.1% OF TOTAL INVESTMENTS)
500 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 Aaa 490,290
Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals
1606, 5.462%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.1% (3.2% OF TOTAL INVESTMENTS)
2,285 Florida Municipal Loan Council, Revenue Bonds, Series 2005A, 2/15 at 100.00 AAA 2,414,811
5.000%, 2/01/23 - MBIA Insured
1,500 JEA, Florida, Water and Sewerage System Revenue Bonds, Series 10/13 at 100.00 AAA 1,597,680
2004A, 5.000%, 10/01/19 - FGIC Insured
4,145 Miami, Florida, General Obligation Bonds, Series 2002, 5.000%, 1/12 at 100.00 AAA 4,323,318
1/01/22 - MBIA Insured
4,240 Reedy Creek Improvement District, Florida, Utility Revenue Bonds, 10/13 at 100.00 AAA 4,595,439
Series 2003-1, 5.250%, 10/01/17 - MBIA Insured
2,000 Tallahassee, Florida, Energy System Revenue Bonds, Series 2005, 10/15 at 100.00 AAA 2,116,060
5.000%, 10/01/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
14,170 Total Florida 15,047,308
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 3.4% (2.1% OF TOTAL INVESTMENTS)
2,950 Atlanta, Georgia, Airport General Revenue Bonds, Series 2004G, 1/15 at 100.00 AAA 3,108,150
5.000%, 1/01/25 - FSA Insured
6,500 Medical Center Hospital Authority, Georgia, Revenue Anticipation 8/09 at 102.00 AAA 6,846,775
Certificates, Columbus Regional Healthcare System, Inc. Project,
Series 1999, 5.500%, 8/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
9,450 Total Georgia 9,954,925
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 3.7% (2.4% OF TOTAL INVESTMENTS)
2,250 Hawaii Department of Budget and Finance, Special Purpose Revenue 1/09 at 101.00 AAA 2,350,553
Bonds, Hawaiian Electric Company Inc., Series 1999D, 6.150%,
1/01/20 - AMBAC Insured (Alternative Minimum Tax)
8,030 Hawaii Department of Transportation, Airport System Revenue 7/10 at 101.00 AAA 8,706,046
Refunding Bonds, Series 2000B, 6.500%, 7/01/15 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,280 Total Hawaii 11,056,599
------------------------------------------------------------------------------------------------------------------------------------
39
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 16.0% (10.1% OF TOTAL INVESTMENTS)
$ 4,000 Bridgeview, Illinois, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA $ 4,194,240
5.000%, 12/01/22 - FGIC Insured
8,200 Chicago Board of Education, Illinois, General Obligation Lease No Opt. Call AAA 9,234,102
Certificates, Series 1992A, 6.250%, 1/01/15 - MBIA Insured
10,000 Chicago, Illinois, General Obligation Refunding Bonds, Series 1/10 at 101.00 AAA 10,486,300
2000D, 5.500%, 1/01/35 - FGIC Insured
1,450 Chicago, Illinois, Third Lien General Airport Revenue Bonds, O'Hare 1/16 at 100.00 AAA 1,567,798
International Airport, Series 2005A, 5.250%, 1/01/24 -
MBIA Insured
23,110 Illinois Development Finance Authority, Local Government Program No Opt. Call Aaa 15,623,513
Revenue Bonds, Kane, Cook and DuPage Counties School District
U46 - Elgin, Series 2002, 0.000%, 1/01/17 - FSA Insured
5,010 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 2,696,883
Refunding Bonds, McCormick Place Expansion Project, Series
1996A, 0.000%, 12/15/21 - MBIA Insured
3,225 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 3,559,142
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1992A, 9.000%, 6/01/09 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
54,995 Total Illinois 47,361,978
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.0% (1.9% OF TOTAL INVESTMENTS)
Indiana University, Parking Facility Revenue Bonds, Series 2004:
1,015 5.250%, 11/15/19 - AMBAC Insured 11/14 at 100.00 AAA 1,104,462
1,060 5.250%, 11/15/20 - AMBAC Insured 11/14 at 100.00 AAA 1,151,255
1,100 5.250%, 11/15/21 - AMBAC Insured 11/14 at 100.00 AAA 1,193,951
9,255 Indianapolis Local Public Improvement Bond Bank, Indiana, Series No Opt. Call AAA 4,281,270
1999E, 0.000%, 2/01/25 - AMBAC Insured
1,000 Metropolitan School District Steuben County K-5 Building 7/14 at 102.00 AAA 1,086,990
Corporation, Indiana, First Mortgage Bonds, Series 2003, 5.250%,
1/15/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
13,430 Total Indiana 8,817,928
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.2% (0.8% OF TOTAL INVESTMENTS)
3,345 Ames, Iowa, Hospital Revenue Refunding Bonds, Mary Greeley Medical 6/13 at 100.00 Aaa 3,518,672
Center, Series 2003, 5.000%, 6/15/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.0% (0.6% OF TOTAL INVESTMENTS)
2,760 Neosho County Unified School District 413, Kansas, General 9/14 at 100.00 Aaa 2,907,798
Obligation Bonds, Series 2006, 5.000%, 9/01/31 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.5% (1.6% OF TOTAL INVESTMENTS)
7,160 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AAA 7,341,936
4.750%, 5/01/39 - FSA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 2.2% (1.4% OF TOTAL INVESTMENTS)
1,200 Maryland Economic Development Corporation, Student Housing Revenue 6/16 at 100.00 AAA 1,276,980
Refunding Bonds, University of Maryland College Park Projects,
Series 2006, 5.000%, 6/01/28 - CIFG Insured
5,000 Maryland Transportation Authority, Airport Parking Revenue Bonds, 3/12 at 101.00 AAA 5,234,400
Baltimore-Washington International Airport Passenger Facility,
Series 2002B, 5.125%, 3/01/21 - AMBAC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,200 Total Maryland 6,511,380
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.7% (1.1% OF TOTAL INVESTMENTS)
4,400 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 4,683,668
Revenue Bonds, Series 2005A, 5.000%, 8/15/23 - FSA Insured
500 Massachusetts Water Resources Authority, General Revenue Bonds, 2/17 at 100.00 Aaa 475,995
Series 2007, Residual Trust 7039, 5.247%, 8/01/46 -
FSA Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
4,900 Total Massachusetts 5,159,663
------------------------------------------------------------------------------------------------------------------------------------
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.6% (2.3% OF TOTAL INVESTMENTS)
$ 6,500 Michigan Higher Education Student Loan Authority, Revenue Bonds, No Opt. Call AAA $ 6,732,700
Series 2000 XII-T, 5.300%, 9/01/10 - AMBAC Insured
(Alternative Minimum Tax)
3,810 Michigan Housing Development Authority, GNMA Collateralized 8/12 at 102.00 Aaa 3,985,336
Limited Obligation Multifamily Housing Revenue Bonds, Cranbrook
Apartments, Series 2001A, 5.500%, 2/20/43
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,310 Total Michigan 10,718,036
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.8% (1.1% OF TOTAL INVESTMENTS)
4,860 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 1/11 at 100.00 AAA 5,156,654
Airport Revenue Bonds, Series 2001B, 5.750%, 1/01/15 - FGIC
Insured (Alternative Minimum Tax)
145 Minnesota Housing Finance Agency, Rental Housing Bonds, Series 8/07 at 100.00 AAA 145,257
1995D, 5.950%, 2/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,005 Total Minnesota 5,301,911
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 3.3% (2.1% OF TOTAL INVESTMENTS)
7,495 Jefferson County Industrial Development Authority, Missouri, 8/07 at 100.00 AAA 7,647,748
Housing Revenue Bonds, Richardson Road Apartments Project,
Series 1985, 11.000%, 12/15/15 (Pre-refunded 8/15/07)
2,000 Missouri Western State College, Auxiliary System Revenue Bonds, 10/13 at 100.00 AAA 2,131,420
Series 2003, 5.000%, 10/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
9,495 Total Missouri 9,779,168
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 6.8% (4.3% OF TOTAL INVESTMENTS)
2,100 Clark County, Nevada, General Obligation Bank Bonds, Southern 12/12 at 100.00 AAA 2,193,429
Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32 -
MBIA Insured
900 Clark County, Nevada, General Obligation Bank Bonds, Southern 12/12 at 100.00 Aaa 959,229
Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32
(Pre-refunded 12/01/12) - MBIA Insured
8,000 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/11 at 100.00 AAA 8,441,040
Series 2001B, 5.125%, 7/01/21 (Pre-refunded 7/01/11) -
FGIC Insured
7,990 Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, Reno 6/12 at 100.00 AAA 8,549,540
Transportation Rail Access Corridor Project, Series 2002,
5.250%, 6/01/41 (Pre-refunded 6/01/12) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
18,990 Total Nevada 20,143,238
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.6% (1.0% OF TOTAL INVESTMENTS)
New Jersey Economic Development Authority, Revenue Bonds, Motor
Vehicle Surcharge, Series 2004A:
1,200 5.000%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 1,280,256
1,200 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 1,266,816
1,280 New Jersey Educational Facilities Authority, Revenue Bonds, Rowan 7/17 at 100.00 AAA 1,249,677
College, Series 2007B, 4.250%, 7/01/34 - FGIC Insured
800 Rutgers State University, New Jersey, Certificates of 1/14 at 100.00 AAA 839,456
Participation, Lower Georges Street University Redevelopment
Associates LLC, Series 2004, 5.000%, 1/01/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
4,480 Total New Jersey 4,636,205
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 7.1% (4.5% OF TOTAL INVESTMENTS)
1,000 Dormitory Authority of the State of New York, FHA-Insured Mortgage 2/15 at 100.00 AAA 1,058,850
Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%,
8/01/23 - FGIC Insured
20 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 19,176
Driver Trust 1649, 2006, 5.205%, 2/15/47 - MBIA Insured (IF)
2,125 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 2,095,781
Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
5,000 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 AAA 5,328,550
Revenue Bonds, Series 2006A, 5.000%, 12/01/25 - FGIC Insured
10,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 10,793,400
Revenue Refunding Bonds, Series 2002F, 5.250%, 11/15/27
(Pre-refunded 11/15/12) - MBIA Insured
41
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 1,450 New York State Thruway Authority, Highway and Bridge Trust Fund 10/15 at 100.00 AAA $ 1,551,239
Bonds, Second Generation, Series 2005B, 5.000%, 4/01/21 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
19,595 Total New York 20,846,996
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.2% (1.4% OF TOTAL INVESTMENTS)
3,100 North Carolina Medical Care Commission, FHA-Insured Mortgage 10/13 at 100.00 AAA 3,261,200
Revenue Bonds, Betsy Johnson Regional Hospital Project, Series
2003, 5.125%, 10/01/32 - FSA Insured
3,050 Raleigh Durham Airport Authority, North Carolina, Airport Revenue 5/15 at 100.00 Aaa 3,238,887
Bonds, Series 2005A, 5.000%, 5/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,150 Total North Carolina 6,500,087
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.8% (1.2% OF TOTAL INVESTMENTS)
820 Cincinnati City School District, Hamilton County, Ohio, General No Opt. Call AAA 934,406
Obligation Bonds, Series 2006, 5.250%, 12/01/22 - FGIC Insured
4,600 Hamilton County, Ohio, Sales Tax Bonds, Subordinate, Series 2006, 12/16 at 100.00 Aaa 4,463,610
4.250%, 12/01/32 - AMBAC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
5,420 Total Ohio 5,398,016
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.6% (1.0% OF TOTAL INVESTMENTS)
3,500 Oklahoma Capitol Improvement Authority, State Facilities Revenue 7/15 at 100.00 AAA 3,720,360
Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured
880 Oklahoma Housing Finance Agency, GNMA Collateralized Single Family No Opt. Call AAA 941,688
Mortgage Revenue Bonds, Series 1987A, 7.997%, 8/01/18
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,380 Total Oklahoma 4,662,048
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 4.2% (2.7% OF TOTAL INVESTMENTS)
Oregon Health Sciences University, Revenue Bonds, Series 2002A:
5,000 5.000%, 7/01/26 - MBIA Insured 1/13 at 100.00 AAA 5,215,050
7,000 5.000%, 7/01/32 - MBIA Insured 1/13 at 100.00 AAA 7,301,070
------------------------------------------------------------------------------------------------------------------------------------
12,000 Total Oregon 12,516,120
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.3% (2.1% OF TOTAL INVESTMENTS)
1,500 Allegheny County Sanitary Authority, Pennsylvania, Sewerage Revenue 12/15 at 100.00 AAA 1,600,740
Bonds, Series 2005A, 5.000%, 12/01/23 - MBIA Insured
4,000 Commonwealth Financing Authority, Pennsylvania, State Appropriation 6/16 at 100.00 AAA 4,269,080
Lease Bonds, Series 2006A, 5.000%, 6/01/26 - FSA Insured
2,685 Pennsylvania Public School Building Authority, Lease Revenue Bonds, 12/16 at 100.00 AAA 2,674,904
School District of Philadelphia, Series 2006B, 4.500%,
6/01/32 - FSA Insured (UB)
1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 6/16 at 100.00 AAA 1,121,453
2006A, 5.000%, 12/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,235 Total Pennsylvania 9,666,177
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 2.1% (1.3% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/15 at 100.00 AAA 2,682,525
2005RR, 5.000%, 7/01/22 - FGIC Insured
1,000 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, No Opt. Call AAA 1,130,650
8/01/21 - CIFG Insured
2,000 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call AAA 2,276,320
Authority, Series 2003AA, 5.500%, 7/01/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,500 Total Puerto Rico 6,089,495
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 3.6% (2.3% OF TOTAL INVESTMENTS)
3,000 Blount County Public Building Authority, Tennessee, Local 6/15 at 100.00 Aaa 3,187,320
Government Public Improvement Lease Bonds, Oak Ridge, Series
2005B-9-A, 5.000%, 6/01/24 - AMBAC Insured
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE (continued)
$ 2,055 Memphis, Tennessee, Sanitary Sewerage System Revenue Bonds, 10/14 at 100.00 AAA $ 2,189,808
Series 2004, 5.000%, 10/01/22 - FSA Insured
5,000 Metropolitan Government of Nashville-Davidson County Health and 11/09 at 101.00 AAA 5,320,100
Educational Facilities Board, Tennessee, Revenue Bonds, Ascension
Health Credit Group, Series 1999A, 6.000%, 11/15/30
(Pre-refunded 11/15/09) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,055 Total Tennessee 10,697,228
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 10.5% (6.6% OF TOTAL INVESTMENTS)
12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 AAA 12,922,125
Refunding and Improvement Bonds, Series 2001A, 5.500%, 11/01/35 -
FGIC Insured (Alternative Minimum Tax)
North Harris County Regional Water Authority, Texas, Senior
Water Revenue Bonds, Series 2003:
4,565 5.250%, 12/15/20 - FGIC Insured 12/13 at 100.00 AAA 4,922,942
4,800 5.250%, 12/15/21 - FGIC Insured 12/13 at 100.00 AAA 5,137,296
7,600 San Antonio, Texas, Airport System Improvement Revenue Bonds, 7/11 at 101.00 AAA 8,045,132
Series 2001, 5.375%, 7/01/16 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
29,465 Total Texas 31,027,495
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 18.6% (11.7% OF TOTAL INVESTMENTS)
5,000 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 5,330,050
Consolidated System Revenue Bonds, Series 2001B, 5.600%,
1/01/36 - MBIA Insured (Alternative Minimum Tax)
King County School District 405, Bellevue, Washington, General
Obligation Bonds, Series 2002:
12,060 5.000%, 12/01/19 - FGIC Insured 12/12 at 100.00 AAA 12,766,234
12,785 5.000%, 12/01/20 - FGIC Insured 12/12 at 100.00 AAA 13,533,690
Pierce County School District 343, Dieringer, Washington,
General Obligation Refunding Bonds, Series 2003:
2,755 5.250%, 12/01/18 - FGIC Insured 6/13 at 100.00 Aaa 2,961,625
2,990 5.250%, 12/01/19 - FGIC Insured 6/13 at 100.00 Aaa 3,214,250
4,715 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 5.625%, 10/11 at 100.00 AAA 5,015,534
4/01/17 - FGIC Insured (Alternative Minimum Tax)
895 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 949,622
Terminal 18, Series 1999C, 6.000%, 9/01/29 - MBIA Insured
(Alternative Minimum Tax)
1,265 Tacoma, Washington, General Obligation Bonds, Series 2002, 5.000%, 12/12 at 100.00 AAA 1,339,078
12/01/18 - FGIC Insured
4,200 Tacoma, Washington, Solid Waste Utility Revenue Refunding Bonds, 12/11 at 100.00 AAA 4,474,890
Series 2001, 5.250%, 12/01/20 (Pre-refunded 12/01/11) -
AMBAC Insured
5,000 Washington, General Obligation Bonds, Series 2001C, 5.250%, 1/11 at 100.00 AAA 5,219,749
1/01/26 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
51,665 Total Washington 54,804,722
------------------------------------------------------------------------------------------------------------------------------------
$ 472,680 Total Investments (cost $441,150,896) - 158.3% 467,203,669
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (6.6)% (19,520,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.9% 8,418,762
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.6)% (161,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 295,102,431
=====================================================================================================================
All of the bonds in the Portfolio of Investments, excluding temporary
investments in short-term municipal 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.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's rating.
Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment grade.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
(IF) Inverse floating rate investment.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
43
Nuveen Insured Premium Income Municipal Fund 2 (NPX)
Portfolio of
INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 4.3% (2.6% OF TOTAL INVESTMENTS)
$ 3,750 Huntsville Healthcare Authority, Alabama, Revenue Bonds, Series 6/15 at 100.00 AAA $ 3,934,088
2005A, 5.000%, 6/01/24 - MBIA Insured
Jefferson County, Alabama, General Obligation
Warrants, Series 2004A:
1,395 5.000%, 4/01/22 - MBIA Insured 4/14 at 100.00 AAA 1,481,141
1,040 5.000%, 4/01/23 - MBIA Insured 4/14 at 100.00 AAA 1,097,460
11,135 Limestone County Water and Sewer Authority, Alabama, Water Revenue 3/17 at 100.00 AAA 10,952,720
Bonds, Series 2007, 4.500%, 12/01/37 - XLCA Insured (UB)
Montgomery Water and Sewerage Board, Alabama, Water and
Sewerage Revenue Bonds, Series 2005:
2,220 5.000%, 3/01/24 - FSA Insured 3/15 at 100.00 AAA 2,353,400
2,590 5.000%, 3/01/25 - FSA Insured 3/15 at 100.00 AAA 2,743,846
------------------------------------------------------------------------------------------------------------------------------------
22,130 Total Alabama 22,562,655
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.4% (1.4% OF TOTAL INVESTMENTS)
12,365 Phoenix Civic Improvement Corporation, Arizona, Junior Lien Water 7/15 at 100.00 AAA 12,791,593
System Revenue Bonds, Series 2005, 4.750%, 7/01/27 -
MBIA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 2.9% (1.7% OF TOTAL INVESTMENTS)
7,745 Arkansas Development Finance Authority, State Facility Revenue 6/14 at 100.00 AAA 8,371,725
Bonds, Donaghey Plaza Project, Series 2004, 5.250%, 6/01/25 -
FSA Insured
University of Arkansas, Fayetteville, Revenue Bonds, Medical
Sciences Campus, Series 2004B:
2,000 5.000%, 11/01/27 - MBIA Insured 11/14 at 100.00 Aaa 2,111,940
2,000 5.000%, 11/01/28 - MBIA Insured 11/14 at 100.00 Aaa 2,111,940
2,480 University of Arkansas, Monticello Campus, Revenue Bonds, Series 12/13 at 100.00 Aaa 2,601,768
2005, 5.000%, 12/01/35 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
14,225 Total Arkansas 15,197,373
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 27.6% (16.5% OF TOTAL INVESTMENTS)
22,880 Alameda Corridor Transportation Authority, California, Senior Lien No Opt. Call AAA 7,419,069
Revenue Bonds, Series 1999A, 0.000%, 10/01/32 - MBIA Insured (UB)
2,000 California Department of Water Resources, Water System Revenue 12/14 at 100.00 AAA 2,130,760
Bonds, Central Valley Project, Series 2005AC, 5.000%, 12/01/24 -
MBIA Insured
1,800 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aaa 1,903,140
Occidental College, Series 2005A, 5.000%, 10/01/33 - MBIA Insured
7,000 California Infrastructure Economic Development Bank, First Lien 1/28 at 100.00 AAA 7,846,020
Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A,
5.000%, 7/01/33 (Pre-refunded 1/01/28) - AMBAC Insured (UB)
31,200 Foothill/Eastern Transportation Corridor Agency, California, Toll 1/10 at 24.23 AAA 6,722,040
Road Revenue Refunding Bonds, Series 1999, 0.000%, 1/15/34 -
MBIA Insured
1,735 Fullerton Public Financing Authority, California, Tax Allocation 9/15 at 100.00 AAA 1,834,797
Revenue Bonds, Series 2005, 5.000%, 9/01/27 - AMBAC Insured
7,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 7,353,360
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
5.000%, 6/01/35 - FGIC Insured
1,870 Kern Community College District, California, General Obligation No Opt. Call AAA 912,710
Bonds, Series 2006, 0.000%, 11/01/23 - FSA Insured
6,520 Los Angeles Unified School District, California, General Obligation 7/15 at 100.00 AAA 6,973,466
Bonds, Series 2005E, 5.000%, 7/01/22 - AMBAC Insured
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 4,000 Los Angeles Unified School District, California, General Obligation 7/16 at 100.00 AAA $ 4,283,680
Bonds, Series 2006F, 5.000%, 7/01/24 - FGIC Insured
15,000 Orange County Sanitation District, California, Certificates of 8/13 at 100.00 AAA 15,954,749
Participation, Series 2003, 5.250%, 2/01/30 - FGIC Insured
10,000 Orange County Water District, California, Revenue Certificates of 8/13 at 100.00 AAA 10,431,500
Participation, Series 2003B, 5.000%, 8/15/34 - MBIA Insured
1,000 Orange County Water District, California, Revenue Certificates of 2/15 at 100.00 AAA 1,055,690
Participation, Series 2005B, 5.000%, 8/15/24 - MBIA Insured
1,435 Pasadena Area Community College District, Los Angeles County, 6/13 at 100.00 AAA 1,541,047
California, General Obligation Bonds, Series 2003A, 5.000%,
6/01/22 (Pre-refunded 6/01/13) - FGIC Insured
12,265 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 AAA 13,182,054
Improvement Revenue Bonds, Solid Waste and Redevelopment
Projects, Series 1999, 5.800%, 12/01/19 (Pre-refunded 12/01/09) -
AMBAC Insured
735 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 AAA 787,494
Improvement Revenue Bonds, Solid Waste and Redevelopment
Projects, Series 1999, 5.800%, 12/01/19 - AMBAC Insured
San Diego County, California, Certificates of Participation,
Edgemoor Facility Project and Regional System, Series 2005:
1,675 5.000%, 2/01/24 - AMBAC Insured 2/15 at 100.00 AAA 1,767,896
720 5.000%, 2/01/25 - AMBAC Insured 2/15 at 100.00 AAA 759,442
14,170 San Diego Unified School District, San Diego County, California, 7/15 at 100.00 AAA 15,452,668
General Obligation Bonds, Series 2005G, 5.000%, 7/01/29
(Pre-refunded 7/01/15) - FSA Insured (UB)
26,900 San Joaquin Hills Transportation Corridor Agency, Orange County, No Opt. Call AAA 8,324,743
California, Toll Road Revenue Refunding Bonds, Series 1997A,
0.000%, 1/15/34 - MBIA Insured (UB)
2,000 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/14 at 100.00 AAA 2,163,640
Merged Area Redevelopment Project, Series 2004A, 5.250%,
8/01/19 - MBIA Insured
7,845 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/17 at 100.00 AAA 7,547,125
Merged Area Redevelopment Project, Series 2006C, 4.250%,
8/01/30 - MBIA Insured (UB)
5,000 Torrance, California, Certificates of Participation, Series 2005B, No Opt. Call AAA 5,263,150
5.000%, 6/01/24 - AMBAC Insured
12,500 University of California, Revenue Bonds, Multi-Purpose Projects, 5/13 at 100.00 AAA 13,069,250
Series 2003A, 5.000%, 5/15/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
197,250 Total California 144,679,490
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 9.0% (5.4% OF TOTAL INVESTMENTS)
1,940 Colorado Educational and Cultural Facilities Authority, Charter 6/13 at 100.00 AAA 2,063,850
School Revenue Bonds, Adams School District 12 - Pinnacle
School, Series 2003, 5.250%, 6/01/23 - XLCA Insured
3,405 Colorado Educational and Cultural Facilities Authority, Charter 12/13 at 100.00 AAA 3,638,004
School Revenue Bonds, Classical Academy, Series 2003, 5.250%,
12/01/23 - XLCA Insured
3,500 Colorado Health Facilities Authority, Revenue Bonds, Poudre Valley 12/09 at 101.00 Aaa 3,705,765
Healthcare Inc., Series 1999A, 5.750%, 12/01/23
(Pre-refunded 12/01/09) - FSA Insured
17,145 Denver Convention Center Hotel Authority, Colorado, Senior Revenue 12/13 at 100.00 AAA 18,431,560
Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/33
(Pre-refunded 12/01/13) - XLCA Insured
6,100 Denver School District 1, Colorado, General Obligation Bonds, 12/13 at 100.00 AAA 6,506,321
Series 2004, 5.000%, 12/01/18 - FSA Insured
1,325 El Paso County, Colorado, Certificates of Participation, 12/12 at 100.00 AAA 1,383,618
Detention Facility Project, Series 2002B, 5.000%, 12/01/27 -
AMBAC Insured
Jefferson County School District R1, Colorado, General
Obligation Bonds, Series 2004:
2,500 5.000%, 12/15/22 - FSA Insured 12/14 at 100.00 AAA 2,667,875
5,125 5.000%, 12/15/23 - FSA Insured 12/14 at 100.00 AAA 5,436,241
2,000 5.000%, 12/15/24 - FSA Insured 12/14 at 100.00 AAA 2,118,780
1,000 University of Colorado, Enterprise System Revenue Bonds, Series 6/15 at 100.00 AAA 1,058,900
2005, 5.000%, 6/01/30 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
44,040 Total Colorado 47,010,914
------------------------------------------------------------------------------------------------------------------------------------
45
Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.1% (0.1% OF TOTAL INVESTMENTS)
$ 800 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 Aaa $ 784,464
Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals
1606, 5.462%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 0.8% (0.5% OF TOTAL INVESTMENTS)
4,000 Florida State Board of Education, Full Faith and Credit Public 6/13 at 101.00 AAA 4,252,160
Education Capital Outlay Bonds, Series 2003J, 5.000%, 6/01/22 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 3.8% (2.3% OF TOTAL INVESTMENTS)
4,000 Cobb County Development Authority, Georgia, Parking Revenue Bonds, 7/14 at 100.00 Aaa 4,226,320
Kennesaw State University, Series 2004, 5.000%, 7/15/24 -
MBIA Insured
2,925 Columbus, Georgia, Water and Sewerage Revenue Bonds, Series 2005, 5/14 at 100.00 AAA 3,093,860
5.000%, 5/01/23 - MBIA Insured
Municipal Electric Authority of Georgia, Combustion Turbine
Revenue Bonds, Series 2003A:
1,775 5.000%, 11/01/21 - MBIA Insured 11/13 at 100.00 AAA 1,869,519
2,580 5.000%, 11/01/22 - MBIA Insured 11/13 at 100.00 AAA 2,715,889
4,500 South Fulton Municipal Regional Water and Sewerage Authority, 1/13 at 100.00 Aaa 4,693,545
Georgia, Water and Sewerage Revenue Bonds, Series 2003, 5.000%,
1/01/33 - MBIA Insured
3,000 Valdosta and Lowndes County Hospital Authority, Georgia, Revenue 10/12 at 101.00 AAA 3,180,630
Certificates, South Georgia Medical Center, Series 2002, 5.200%,
10/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
18,780 Total Georgia 19,779,763
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 7.7% (4.6% OF TOTAL INVESTMENTS)
2,375 Hawaii County, Hawaii, General Obligation Bonds, Series 2003A, 7/13 at 100.00 AAA 2,525,100
5.000%, 7/15/19 - FSA Insured
20,000 Hawaii Department of Budget and Finance, Special Purpose Revenue 7/10 at 101.00 AAA 21,180,995
Refunding Bonds, Hawaiian Electric Company Inc., Series 2000,
5.700%, 7/01/20 - AMBAC Insured (Alternative Minimum Tax)
Hawaii Department of Transportation, Airport System Revenue
Refunding Bonds, Series 2000B:
6,105 6.100%, 7/01/16 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 AAA 6,554,450
9,500 6.625%, 7/01/17 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 AAA 10,331,915
------------------------------------------------------------------------------------------------------------------------------------
37,980 Total Hawaii 40,592,460
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.1% (0.0% OF TOTAL INVESTMENTS)
425 Idaho Housing and Finance Association, Single Family Mortgage 1/08 at 101.50 AAA 429,684
Bonds, Series 1998E, 5.450%, 7/01/18 - AMBAC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 3.6% (2.2% OF TOTAL INVESTMENTS)
1,015 Chicago Park District, Illinois, Limited Tax General Obligation 7/11 at 100.00 AAA 1,081,097
Park Bonds, Series 2001C, 5.500%, 1/01/18 - FGIC Insured
Illinois Health Facilities Authority, Revenue Bonds, Lutheran
General Health System, Series 1993A:
2,810 6.125%, 4/01/12 - FSA Insured (ETM) No Opt. Call AAA 2,970,282
5,000 6.250%, 4/01/18 - FSA Insured (ETM) No Opt. Call AAA 5,867,600
1,950 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call AAA 2,283,099
SSM Healthcare System, Series 1992AA, 6.550%, 6/01/14 - MBIA
Insured (ETM)
6,000 Illinois Toll Highway Authority, State Toll Highway Authority 7/16 at 100.00 AAA 6,387,660
Revenue Bonds, Series 2006, 5.000%, 1/01/26 - FSA Insured
225 Peoria, Moline and Freeport, Illinois, GNMA Collateralized Single 10/07 at 103.00 AAA 228,485
Family Mortgage Revenue Bonds, Series 1995A, 7.600%, 4/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
17,000 Total Illinois 18,818,223
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 0.9% (0.5% OF TOTAL INVESTMENTS)
Hamilton County Public Building Corporation, Indiana, First
Mortgage Bonds, Series 2004:
2,105 5.000%, 8/01/23 - FSA Insured 8/14 at 100.00 AAA 2,213,913
2,215 5.000%, 8/01/24 - FSA Insured 8/14 at 100.00 AAA 2,326,791
------------------------------------------------------------------------------------------------------------------------------------
4,320 Total Indiana 4,540,704
------------------------------------------------------------------------------------------------------------------------------------
46
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.3% (0.2% OF TOTAL INVESTMENTS)
$ 1,500 Kansas Turnpike Authority, Revenue Bonds, 9/14 at 101.00 AAA $ 1,596,330
Series 2004A-2, 5.000%, 9/01/27 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.1% (0.7% OF TOTAL INVESTMENTS)
6,010 Kentucky Economic Development Finance Authority, No Opt. Call AAA 2,194,191
Health System Revenue Bonds, Norton Healthcare Inc.,
Series 2000B, 0.000%, 10/01/28 - MBIA Insured
3,575 Kentucky Turnpike Authority, Economic Development Road Revenue 7/15 at 100.00 AAA 3,797,544
Bonds, Revitalization Project, Series 2005B, 5.000%, 7/01/25 -
AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
9,585 Total Kentucky 5,991,735
-----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 4.4% (2.7% OF TOTAL INVESTMENTS)
1,640 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge 7/14 at 100.00 AAA 1,747,125
General Hospital, Series 2004, 5.250%, 7/01/24 - MBIA Insured
Louisiana State, Gasoline and Fuels Tax Revenue
Bonds, Series 2005A:
1,200 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AAA 1,266,768
2,210 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AAA 2,331,417
2,500 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AAA 2,637,350
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006:
1,320 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 1,353,541
14,265 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AAA 14,033,052
-----------------------------------------------------------------------------------------------------------------------------------
23,135 Total Louisiana 23,369,253
-----------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.9% (0.5% OF TOTAL INVESTMENTS)
1,865 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 AAA 2,033,652
Bonds, Series 2006A, 5.250%, 9/01/26 - XLCA Insured
2,580 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 AAA 2,648,370
Revenue Bonds, Western Maryland Health, Series 2006A, 4.750%,
7/01/36 - MBIA Insured (UB)
-----------------------------------------------------------------------------------------------------------------------------------
4,445 Total Maryland 4,682,022
-----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.9% (1.8% OF TOTAL INVESTMENTS)
3,000 Massachusetts Development Finance Authority, Revenue Bonds, No Opt. Call AAA 3,751,290
WGBH Educational Foundation, Series 2002A, 5.750%, 1/01/42 -
AMBAC Insured
4,910 Massachusetts, General Obligation Bonds, Consolidated Loan, No Opt. Call AAA 5,514,667
Series 2002C, 5.500%, 11/01/15 - MBIA Insured
Massachusetts, Special Obligation Dedicated Tax Revenue Bonds,
Series 2004:
3,650 5.250%, 1/01/22 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 3,966,857
2,000 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 2,173,620
-----------------------------------------------------------------------------------------------------------------------------------
13,560 Total Massachusetts 15,406,434
-----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.9% (1.2% OF TOTAL INVESTMENTS)
10,000 Michigan Housing Development Authority, Rental Housing Revenue 10/07 at 102.00 AAA 10,215,200
Bonds, Series 1997A, 6.000%, 4/01/16 - AMBAC Insured
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.2% (0.1% OF TOTAL INVESTMENTS)
885 Minnesota Housing Finance Agency, Rental Housing Bonds, 8/07 at 100.00 AAA 886,566
Series 1995D, 5.950%, 2/01/18 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
47
Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.5% (0.3% OF TOTAL INVESTMENTS)
$ 1,000 Jackson County Reorganized School District R-7, Lees Summit, 3/16 at 100.00 Aaa $ 1,089,500
Missouri, General Obligation Bonds, Series 2006, 5.250%,
3/01/25 - MBIA Insured
535 Missouri Housing Development Commission, 6/07 at 102.00 AAA 545,625
Multifamily Housing Revenue Bonds, Brookstone Village
Apartments, Series 1996A, 6.000%, 12/01/16 - FSA Insured
(Alternative Minimum Tax)
750 Missouri Western State College, Auxiliary System Revenue Bonds, 10/13 at 100.00 AAA 786,008
Series 2003, 5.000%, 10/01/33 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
2,285 Total Missouri 2,421,133
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 3.7% (2.2% OF TOTAL INVESTMENTS)
Nebraska Public Power District, General Revenue Bonds,
Series 2005A:
1,000 5.000%, 1/01/24 - FSA Insured 1/15 at 100.00 AAA 1,059,670
1,000 5.000%, 1/01/25 - FSA Insured 1/15 at 100.00 AAA 1,059,000
12,520 Nebraska Public Power District, Power Supply System Revenue Bonds, 2/16 at 100.00 AAA 13,171,040
Series 2006A, 5.000%, 1/01/41 - FGIC Insured (UB)
3,875 Omaha Public Power District, Nebraska, Separate Electric 2/17 at 100.00 AAA 4,091,225
System Revenue Bonds, Nebraska City 2, Series 2006A, 5.000%,
2/01/49 - AMBAC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
18,395 Total Nebraska 19,380,935
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.2% (1.9% OF TOTAL INVESTMENTS)
5,000 Clark County, Nevada, Industrial Development Revenue Bonds, 7/10 at 102.00 AAA 5,379,000
Southwest Gas Corporation, Series 2000C, 5.950%, 12/01/38 -
AMBAC Insured (Alternative Minimum Tax)
3,280 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/14 at 100.00 AAA 3,475,554
Series 2004A-2, 5.125%, 7/01/24 - FGIC Insured
Director of Nevada State Department of Business and
Industry, Revenue Bonds, Las Vegas Monorail Project, First
Tier, Series 2000:
5,000 0.000%, 1/01/27 - AMBAC Insured No Opt. Call AAA 2,098,950
5,500 5.625%, 1/01/32 - AMBAC Insured 1/10 at 102.00 AAA 5,832,860
------------------------------------------------------------------------------------------------------------------------------------
18,780 Total Nevada 16,786,364
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 5.0% (3.0% OF TOTAL INVESTMENTS)
Essex County Improvement Authority, New Jersey,
Guaranteed Revenue Bonds, Project Consolidation, Series 2004:
2,000 5.125%, 10/01/21 - MBIA Insured 10/14 at 100.00 Aaa 2,153,800
2,250 5.125%, 10/01/22 - MBIA Insured 10/14 at 100.00 Aaa 2,423,025
1,560 Mount Olive Township Board of Education, Morris County, 1/15 at 100.00 Aaa 1,657,718
New Jersey, General Obligation Bonds, Series 2004, 5.000%,
1/15/22 - MBIA Insured
New Jersey Economic Development Authority, Revenue Bonds,
Motor Vehicle Surcharge, Series 2004A:
1,475 5.000%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 1,573,648
1,475 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 1,557,128
3,075 New Jersey Transit Corporation, Certificates of Participation No Opt. Call AAA 3,429,794
Refunding, Series 2003, 5.500%, 10/01/15 - FSA Insured
New Jersey Transportation Trust Fund Authority,
Transportation System Bonds, Series 2006C:
25,000 0.000%, 12/15/35 - AMBAC Insured (UB) No Opt. Call AAA 7,092,500
10,000 0.000%, 12/15/36 - AMBAC Insured (UB) No Opt. Call AAA 2,707,000
3,315 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 5.000%, 1/15 at 100.00 AAA 3,512,806
1/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
50,150 Total New Jersey 26,107,419
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.9% (0.5% OF TOTAL INVESTMENTS)
New Mexico Finance Authority, Public Project Revolving Fund
Revenue Bonds, Series 2004C:
1,415 5.000%, 6/01/22 - AMBAC Insured 6/14 at 100.00 AAA 1,505,107
1,050 5.000%, 6/01/24 - AMBAC Insured 6/14 at 100.00 AAA 1,107,897
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO (continued)
$ 2,000 New Mexico Finance Authority, Public Project Revolving Fund Revenue 6/15 at 100.00 Aaa $ 2,122,520
Bonds, Series 2005E, 5.000%, 6/15/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,465 Total New Mexico 4,735,524
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 14.6% (8.8% OF TOTAL INVESTMENTS)
1,120 Dormitory Authority of the State of New York, FHA-Insured Mortgage 2/15 at 100.00 AAA 1,185,912
Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%,
8/01/23 - FGIC Insured
Dormitory Authority of the State of New York, Insured
Revenue Bonds, New Island Hospital, Series 1999B:
3,400 5.750%, 7/01/19 (Pre-refunded 7/01/09) - MBIA Insured 7/09 at 101.00 AAA 3,582,886
5,750 6.000%, 7/01/24 (Pre-refunded 7/01/09) - MBIA Insured 7/09 at 101.00 AAA 6,089,020
1,785 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 1,890,511
Mental Health Services Facilities Improvements,
Series 2005A, 5.000%, 2/15/24 - AMBAC Insured
1,000 Dormitory Authority of the State of New York, 3/15 at 100.00 AAA 1,061,040
State Personal Income Tax Revenue Bonds, Series 2005F,
5.000%, 3/15/24 - AMBAC Insured
120 Hudson Yards Infrastructure Corporation, New York, 2/17 at 100.00 AAA 115,054
Revenue Bonds, Driver Trust 1649, 2006,
5.205%, 2/15/47 - MBIA Insured (IF)
3,705 Hudson Yards Infrastructure Corporation, New York, 2/17 at 100.00 AAA 3,654,056
Revenue Bonds, Series 2006A,
4.500%, 2/15/47 - MBIA Insured (UB)
2,700 Long Island Power Authority, New York, 11/16 at 100.00 AAA 2,615,274
Electric General Revenue Bonds, Series 2006F,
4.250%, 5/01/33 - MBIA Insured (UB)
Long Island Power Authority, New York,
Electric System General Revenue Bonds, Series 2006A:
10,675 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 11,393,107
5,000 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 5,328,550
1,755 Nassau County, New York, General Obligation Improvement Bonds, 3/10 at 100.00 AAA 1,866,758
Series 2000E, 6.000%, 3/01/16
(Pre-refunded 3/01/10) - FSA Insured
7,500 Nassau Health Care Corporation, New York, 8/09 at 102.00 AAA 7,984,725
County Guaranteed Revenue Bonds, Series 1999,
5.750%, 8/01/29 (Pre-refunded 8/01/09) - FSA Insured
5,000 New York City, New York, General Obligation Bonds, 11/14 at 100.00 AAA 5,334,700
Fiscal Series 2004E, 5.000%, 11/01/21 - FSA Insured
6,160 New York Convention Center Development Corporation, 11/15 at 100.00 AAA 6,468,123
Hotel Unit Fee Revenue Bonds, Series 2005,
5.000%, 11/15/44 - AMBAC Insured (UB)
8,580 New York State Housing Finance Agency, 5/07 at 101.00 AAA 8,681,759
Mortgage Revenue Refunding Bonds, Housing Project,
Series 1996A, 6.125%, 11/01/20 - FSA Insured
3,770 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 4,010,036
Series 2005G, 5.000%, 1/01/25 - FSA Insured
5,000 New York State Thruway Authority, Highway and Bridge Trust Fund 10/15 at 100.00 AAA 5,349,100
Bonds, Second Generation, Series 2005B, 5.000%, 4/01/21 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
73,020 Total New York 76,610,611
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.8% (1.1% OF TOTAL INVESTMENTS)
1,250 Appalachian State University, North Carolina, Revenue Bonds, 7/15 at 100.00 Aaa 1,324,538
Series 2005, 5.000%, 7/15/30 - MBIA Insured
Mooresville, North Carolina, Enterprise System Revenue Bonds,
Series 2004:
2,225 5.000%, 5/01/23 - FGIC Insured 5/14 at 100.00 AAA 2,352,070
2,335 5.000%, 5/01/24 - FGIC Insured 5/14 at 100.00 AAA 2,465,433
2,900 Raleigh Durham Airport Authority, North Carolina, 5/15 at 100.00 Aaa 3,085,687
Airport Revenue Bonds, Series 2005A, 5.000%,
5/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,710 Total North Carolina 9,227,728
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 3.7% (2.3% OF TOTAL INVESTMENTS)
10,715 Fargo, North Dakota, Health System Revenue Bonds, 6/10 at 101.00 AAA 11,296,074
MeritCare Obligated Group, Series 2000A,
5.600%, 6/01/21 - FSA Insured
49
Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA (continued)
$ 8,000 North Dakota, Student Loan Trust Revenue Bonds, Series 2000B, 12/10 at 100.00 AAA $ 8,367,120
5.850%, 12/01/25 - AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
18,715 Total North Dakota 19,663,194
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.0% (1.2% OF TOTAL INVESTMENTS)
1,430 Cincinnati City School District, Hamilton County, Ohio, General No Opt. Call AAA 1,629,514
Obligation Bonds, Series 2006, 5.250%, 12/01/22 - FGIC Insured
8,100 Hamilton County, Ohio, Sales Tax Bonds, Subordinate, Series 2006, 12/16 at 100.00 Aaa 7,859,835
4.250%, 12/01/32 - AMBAC Insured (UB)
700 Shaker Heights, Ohio, General Obligation Bonds, Series 2003, 12/13 at 100.00 AAA 748,111
5.250%, 12/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,230 Total Ohio 10,237,460
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.4% (0.8% OF TOTAL INVESTMENTS)
1,500 Oklahoma Capitol Improvement Authority, State Facilities Revenue 7/15 at 100.00 AAA 1,594,440
Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured
Oklahoma City Airport Trust, Oklahoma, Junior Lien Tax
Exempt Bonds, Twenty Seventh Series 2000A:
1,320 5.125%, 7/01/20 - FSA Insured 7/10 at 100.00 AAA 1,360,788
4,040 5.250%, 7/01/21 - FSA Insured 7/10 at 100.00 AAA 4,193,560
------------------------------------------------------------------------------------------------------------------------------------
6,860 Total Oklahoma 7,148,788
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 3.5% (2.1% OF TOTAL INVESTMENTS)
2,110 Oregon Department of Administrative Services, Certificates of 5/15 at 100.00 AAA 2,220,058
Participation, Series 2005A, 5.000%, 5/01/30 - FSA Insured
1,520 Portland Housing Authority, Oregon, Multifamily Housing Revenue 7/10 at 100.00 Aaa 1,567,743
Bonds, Lovejoy Station Apartments, Series 2000, 6.000%,
7/01/33 - MBIA Insured (Alternative Minimum Tax)
Portland, Oregon, Airport Way Urban Renewal and
Redevelopment Bonds, Series 2000A:
4,405 5.700%, 6/15/17 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 4,707,888
3,665 5.750%, 6/15/18 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 3,922,356
4,265 5.750%, 6/15/19 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 4,564,488
1,375 5.750%, 6/15/20 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 1,471,553
------------------------------------------------------------------------------------------------------------------------------------
17,340 Total Oregon 18,454,086
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 14.0% (8.4% OF TOTAL INVESTMENTS)
12,620 Allegheny County Hospital Development Authority, Pennsylvania, 11/10 at 102.00 AAA 13,917,714
Insured Revenue Bonds, West Penn Allegheny Health System,
Series 2000A, 6.500%, 11/15/30 - MBIA Insured
2,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AAA 2,134,320
Revenue Bonds, Series 2005A, 5.000%, 12/01/23 - MBIA Insured
9,485 Berks County Municipal Authority, Pennsylvania, Hospital Revenue 11/09 at 102.00 AAA 10,185,657
Bonds, Reading Hospital and Medical Center, Series 1999,
6.000%, 11/01/19 (Pre-refunded 11/01/09) - FSA Insured
725 Central Dauphin School District, Dauphin County, Pennsylvania, 2/16 at 100.00 AAA 880,824
General Obligation Bonds, Series 2006, 6.750%, 2/01/24
(Pre-refunded 2/01/16) - MBIA Insured
4,235 Delaware County Authority, Pennsylvania, Revenue Bonds, Villanova 8/16 at 100.00 AAA 4,530,815
University, Series 2006, 5.000%, 8/01/24 - AMBAC Insured
5,780 Pennsylvania Higher Educational Facilities Authority, Revenue 5/15 at 100.00 AAA 6,117,725
Bonds, Drexel University, Series 2005A, 5.000%, 5/01/28 -
MBIA Insured
4,590 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 4,572,741
Bonds, School District of Philadelphia, Series 2006B, 4.500%,
6/01/32 - FSA Insured (UB)
1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 6/16 at 100.00 AAA 1,121,453
2006A, 5.000%, 12/01/26 - AMBAC Insured
Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General
Ordinance, Fifth Series 2004A-1:
5,235 5.000%, 9/01/24 - FSA Insured 9/14 at 100.00 AAA 5,508,581
3,000 5.000%, 9/01/25 - FSA Insured 9/14 at 100.00 AAA 3,154,860
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 2,360 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, 8/07 at 102.00 AAA $ 2,460,040
Series 1997A, 5.125%, 8/01/27 - AMBAC Insured (ETM)
6,370 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, 8/07 at 102.00 AAA 6,517,975
Series 1997A, 5.125%, 8/01/27 (Pre-refunded 8/01/07) -
AMBAC Insured
3,785 Reading School District, Berks County, Pennsylvania, General 1/16 at 100.00 AAA 4,033,561
Obligation Bonds, Series 2005, 5.000%, 1/15/25 - FSA Insured
2,500 Seneca Valley School District, Butler County, Pennsylvania, 7/14 at 100.00 Aaa 2,678,500
General Obligation Bonds, Series 2004, 5.125%, 1/01/23 -
FGIC Insured
1,705 Solebury Township, Pennsylvania, General Obligation Bonds, Series 6/15 at 100.00 Aaa 1,810,659
2005, 5.000%, 12/15/25 - AMBAC Insured
3,650 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 3,903,274
Revenue Bonds, Philadelphia School District, Series 2003,
5.000%, 6/01/29 (Pre-refunded 6/01/13) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
69,090 Total Pennsylvania 73,528,699
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/15 at 100.00 AAA 2,682,525
2005RR, 5.000%, 7/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.4% (0.2% OF TOTAL INVESTMENTS)
1,955 Greenville County School District, South Carolina, Installment 12/16 at 100.00 AAA 2,076,523
Purchase Revenue Bonds, Series 2006, 5.000%, 12/01/28 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 15.3% (9.2% OF TOTAL INVESTMENTS)
Brazos River Authority, Texas, Revenue Refunding Bonds,
Houston Industries Inc., Series 1998C:
10,000 5.125%, 5/01/19 - AMBAC Insured 5/08 at 102.00 AAA 10,318,200
9,000 5.125%, 11/01/20 - AMBAC Insured 11/08 at 102.00 AAA 9,337,950
Corpus Christi, Texas, Utility System Revenue Bonds, Series 2004:
3,475 5.000%, 7/15/22 - FSA Insured 7/14 at 100.00 AAA 3,664,944
3,645 5.000%, 7/15/23 - FSA Insured 7/14 at 100.00 AAA 3,839,570
3,335 Dallas, Texas, Waterworks and Sewer System Revenue Bonds, Series No Opt. Call Aaa 3,094,647
2007, Municipal Securities Trust Certificates, Series 7053,
0.000%, 10/01/32 (WI/DD, Settling 5/03/07) - AMBAC Insured (IF)
12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 AAA 12,922,125
Refunding and Improvement Bonds, Series 2001A, 5.500%,
11/01/35 - FGIC Insured (Alternative Minimum Tax)
4,485 Lower Colorado River Authority, Texas, Contract Revenue Refunding 5/12 at 100.00 AAA 4,722,391
Bonds, Transmission Services Corporation, Series 2003B, 5.000%,
5/15/21 - FSA Insured
10,000 Lower Colorado River Authority, Texas, Contract Revenue Refunding 5/13 at 100.00 AAA 10,393,000
Bonds, Transmission Services Corporation, Series 2003C, 5.000%,
5/15/33 - AMBAC Insured
4,151 Panhandle Regional Housing Finance Corporation, Texas, GNMA 7/12 at 105.00 Aaa 4,550,949
Collateralized Multifamily Housing Mortgage Revenue Bonds,
Renaissance of Amarillo Apartments, Series 2001A,
6.650%, 7/20/42
Tarrant County Health Facilities Development Corporation, Texas,
Hospital Revenue Bonds, Cook Children's Healthcare System,
Series 2000A:
6,725 5.750%, 12/01/17 - FSA Insured 12/10 at 101.00 AAA 7,184,250
6,330 5.750%, 12/01/24 - FSA Insured 12/10 at 101.00 AAA 6,764,491
1,170 Tarrant County Health Facilities Development Corporation, Texas, 12/10 at 101.00 Aaa 1,258,241
Hospital Revenue Bonds, Cook Children's Healthcare System,
Series 2000A, 5.750%, 12/01/24 (Pre-refunded 12/01/10) -
FSA Insured
2,300 Texas State University System, Financing Revenue Refunding Bonds, 3/12 at 100.00 AAA 2,415,920
Series 2002, 5.000%, 3/15/18 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
77,116 Total Texas 80,466,678
------------------------------------------------------------------------------------------------------------------------------------
51
Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 2.2% (1.3% OF TOTAL INVESTMENTS)
$ 8,600 Intermountain Power Agency, Utah, Power Supply Revenue Refunding 7/13 at 100.00 AAA $ 9,140,510
Bonds, Series 2003A, 5.000%, 7/01/18 - FSA Insured
2,385 Mountain Regional Water Special Service District, Utah, Water 12/13 at 100.00 AAA 2,502,676
Revenue Bonds, Series 2003, 5.000%, 12/15/33 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,985 Total Utah 11,643,186
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,320 Vermont Educational and Health Buildings Financing Agency, Revenue 12/10 at 101.00 AAA 1,421,996
Bonds, Fletcher Allen Health Care Inc., Series 2000A, 6.000%,
12/01/23 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 3.0% (1.8% OF TOTAL INVESTMENTS)
Greater Richmond Convention Center Authority, Virginia, Hotel Tax
Revenue Bonds, Series 2005:
5,880 5.000%, 6/15/20 - MBIA Insured 6/15 at 100.00 AAA 6,269,491
5,000 5.000%, 6/15/22 - MBIA Insured 6/15 at 100.00 AAA 5,313,400
Loudoun County Industrial Development Authority, Virginia, Lease
Revenue Bonds, Public Safety Facilities, Series 2003A:
1,150 5.250%, 12/15/22 - FSA Insured 6/14 at 100.00 AAA 1,244,231
500 5.250%, 12/15/23 - FSA Insured 6/14 at 100.00 AAA 540,970
2,250 Virginia Housing Development Authority, Multifamily Housing Bonds, 1/08 at 102.00 AAA 2,313,518
Series 1997B, 6.050%, 5/01/17 - MBIA Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
14,780 Total Virginia 15,681,610
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 6.9% (4.2% OF TOTAL INVESTMENTS)
10,000 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 10,660,100
Consolidated System Revenue Bonds, Series 2001B, 5.600%, 1/01/36
- MBIA Insured (Alternative Minimum Tax)
1,370 Clark County School District 101, La Center, Washington, General 12/12 at 100.00 Aaa 1,438,623
Obligation Bonds, Series 2002, 5.000%, 12/01/22 - FSA Insured
5,230 Douglas County Public Utility District 1, Washington, 9/09 at 102.00 AAA 5,578,057
9/01/29 Revenue Bonds, Wells Hydroelectric, Series 1999A,
6.125%, - MBIA Insured (Alternative Minimum Tax)
1,545 Tacoma, Washington, General Obligation Bonds, Series 2004, 5.000%, 12/14 at 100.00 AAA 1,643,726
12/01/19 - MBIA Insured
3,950 Washington State Healthcare Facilities Authority, Revenue Bonds, 11/08 at 101.00 Aaa 4,049,303
Swedish Health Services, Series 1998, 5.125%, 11/15/22 -
AMBAC Insured
6,200 Washington State, General Obligation Purpose Bonds, Series 2003A, 7/12 at 100.00 AAA 6,538,458
5.000%, 7/01/20 - FGIC Insured
10,855 Washington, General Obligation Bonds, Series 2000S-5, 0.000%, No Opt. Call AAA 6,363,527
1/01/20 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
39,150 Total Washington 36,271,794
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.6% (0.9% OF TOTAL INVESTMENTS)
8,000 Pleasants County, West Virginia, Pollution Control Revenue Bonds, 5/07 at 100.00 AAA 8,237,840
Monongahela Power Company Pleasants Station Project,
Series 1995C, 6.150%, 5/01/15 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 7.2% (4.3% OF TOTAL INVESTMENTS)
7,000 La Crosse, Wisconsin, Resource Recovery Revenue Refunding Bonds, No Opt. Call AAA 8,270,080
Northern States Power Company Project, Series 1996, 6.000%,
11/01/21 - MBIA Insured (Alternative Minimum Tax)
12,750 Milwaukee County, Wisconsin, Airport Revenue Bonds, Series 2000A, 12/10 at 100.00 Aaa 13,463,999
5.750%, 12/01/25 - FGIC Insured (Alternative Minimum Tax)
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (continued)
$ 5,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/07 at 100.00 AAA $ 5,030,850
Bonds, Mercy Health System Corporation, Series 1995, 6.125%,
8/15/13 - AMBAC Insured
6,250 Wisconsin Health and Educational Facilities Authority, Revenue 8/07 at 101.00 AAA 6,384,125
Bonds, Sinai Samaritan Medical Center Inc., Series 1996, 5.750%,
8/15/16 - MBIA Insured
4,225 Wisconsin State, General Obligation Bonds, Series 2006A, 4.750%, 5/16 at 100.00 AAA 4,389,692
5/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
35,225 Total Wisconsin 37,538,746
------------------------------------------------------------------------------------------------------------------------------------
$ 925,496 Total Investments (cost $840,940,187) - 166.6% 873,909,862
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (17.5)% (91,720,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 11,176,962
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.3)% (268,900,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 524,466,824
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT APRIL 30, 2007:
FUND FIXED RATE
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY
------------------------------------------------------------------------------------------------
Citigroup Inc. $10,000,000 Receive 3-Month USD-LIBOR 5.235% Semi-Annually
================================================================================================
UNREALIZED
EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY DATE (4) DATE (DEPRECIATION)
------------------------------------------------------------
Citigroup Inc. 12/12/07 12/12/36 $205,469
============================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
All of the bonds in the Portfolio of Investments, excluding temporary
investments in short-term municipal 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.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's rating.
Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment grade.
(4) Effective date represents the date on which both the Fund and
counterparty commence interest payment accruals on each forward swap
contract.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
(IF) Inverse floating rate investment.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
53
Nuveen Insured Dividend Advantage Municipal Fund (NVG)
Portfolio of
INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 4.2% (2.7% OF TOTAL INVESTMENTS)
$ 5,310 Athens, Alabama, Water and Sewerage Revenue Warrants, Series 2002, 5/12 at 101.00 AAA $ 5,660,779
5.300%, 5/01/32 - MBIA Insured
3,045 Hoover, Alabama, General Obligation Bonds, Series 2003, 5.000%, 3/12 at 101.00 AAA 3,226,512
3/01/20 - MBIA Insured
10,000 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101.00 AAA 10,382,700
Warrants, Series 1999A, 5.375%, 2/01/36 (Pre-refunded 2/01/09)
- FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
18,355 Total Alabama 19,269,991
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 3.5% (2.3% OF TOTAL INVESTMENTS)
15,000 Alaska, International Airport System Revenue Bonds, Series 2002B, 10/12 at 100.00 AAA 16,143,299
5.250%, 10/01/27 (Pre-refunded 10/01/12) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.1% (0.7% OF TOTAL INVESTMENTS)
5,000 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/12 at 100.00 AAA 5,220,150
Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 - FGIC
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 17.7% (11.4% OF TOTAL INVESTMENTS)
2,000 Alameda Corridor Transportation Authority, California, Subordinate No Opt. Call AAA 1,138,960
Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/20 - AMBAC
Insured
California Educational Facilities Authority, Revenue Bonds,
Occidental College, Series 2005A:
1,485 5.000%, 10/01/26 - MBIA Insured 10/15 at 100.00 Aaa 1,582,015
1,565 5.000%, 10/01/27 - MBIA Insured 10/15 at 100.00 Aaa 1,666,099
6,000 California Infrastructure Economic Development Bank, First Lien 1/28 at 100.00 AAA 6,725,160
Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A,
5.000%, 7/01/33 (Pre-refunded 1/01/28) - AMBAC Insured (UB)
California, General Obligation Bonds, Series 2000:
375 5.250%, 9/01/17 (Pre-refunded 9/01/10) - MBIA Insured 9/10 at 100.00 AAA 394,208
2,635 5.250%, 9/01/17 (Pre-refunded 9/01/10) - MBIA Insured 9/10 at 100.00 AAA 2,769,965
190 5.250%, 9/01/17 (Pre-refunded 9/01/10) - MBIA Insured 9/10 at 100.00 AAA 200,038
10,000 California, General Obligation Refunding Bonds, Series 2002, No Opt. Call AAA 10,437,100
5.000%, 2/01/23 - MBIA Insured
8,890 California, General Obligation Veterans Welfare Bonds, Series 12/08 at 101.00 AA- 9,150,121
1997BH, 5.400%, 12/01/14 (Alternative Minimum Tax)
3,000 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 3,017,160
Series 2001BZ, 5.375%, 12/01/24 - MBIA Insured (Alternative
Minimum Tax)
2,425 Fullerton Public Financing Authority, California, Tax Allocation 9/15 at 100.00 AAA 2,564,486
Revenue Bonds, Series 2005, 5.000%, 9/01/27 - AMBAC Insured
365 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 366,124
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1,
5.125%, 6/01/47
1,990 Kern Community College District, California, General Obligation No Opt. Call AAA 881,431
Bonds, Series 2006, 0.000%, 11/01/25 - FSA Insured
625 Los Angeles Department of Water and Power, California, Waterworks 7/16 at 100.00 AAA 664,894
Revenue Bonds, Series 2006A-1, 5.000%, 7/01/36 - AMBAC Insured
7,935 Los Angeles, California, Certificates of Participation, Series 4/12 at 100.00 AAA 8,365,156
2002, 5.300%, 4/01/32 - AMBAC Insured
7,500 Northern California Power Agency, Revenue Refunding Bonds, 7/08 at 101.00 AAA 7,680,300
Hydroelectric Project 1, Series 1998A, 5.200%, 7/01/32 - MBIA
Insured
2,320 Sacramento Municipal Utility District, California, Electric 8/11 at 100.00 AAA 2,462,773
Revenue Bonds, Series 2001P, 5.250%, 8/15/18 - FSA Insured
54
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 28,135 San Joaquin Hills Transportation Corridor Agency, Orange County, No Opt. Call AAA $ 12,417,382
California, Toll Road Revenue Refunding Bonds, Series 1997A,
0.000%, 1/15/26 - MBIA Insured (UB)
6,720 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/17 at 100.00 AAA 6,464,842
Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30
- MBIA Insured (UB)
1,690 Ventura County Community College District, California, General 8/15 at 100.00 AAA 1,793,665
Obligation Bonds, Series 2005B, 5.000%, 8/01/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
95,845 Total California 80,741,879
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.9% (3.8% OF TOTAL INVESTMENTS)
17,300 Adams County, Colorado, FHA-Insured Mortgage Revenue Bonds, Platte 8/15 at 100.00 AAA 18,261,879
Valley Medical Center, Series 2005, 5.000%, 8/01/24 -
MBIA Insured
750 Arkansas River Power Authority, Colorado, Power Revenue Bonds, 10/16 at 100.00 AAA 812,235
Series 2006, 5.250%, 10/01/32 - XLCA Insured
17,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AAA 7,653,570
Series 2000B, 0.000%, 9/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
35,050 Total Colorado 26,727,684
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.6% (1.0% OF TOTAL INVESTMENTS)
6,805 District of Columbia, Revenue Bonds, Georgetown University, 4/17 at 100.00 AAA 6,646,580
Series 2007A, 4.500%, 4/01/42 - AMBAC Insured
700 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 Aaa 686,406
Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals
1606, 5.462%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
7,505 Total District of Columbia 7,332,986
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 11.4% (7.4% OF TOTAL INVESTMENTS)
Florida Municipal Loan Council, Revenue Bonds, Series 2003B:
2,305 5.250%, 12/01/17 - MBIA Insured 12/13 at 100.00 AAA 2,488,432
1,480 5.250%, 12/01/18 - MBIA Insured 12/13 at 100.00 AAA 1,598,134
11,600 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 12,080,588
Revenue Bonds, Series 2002B, 5.125%, 10/01/21 - FSA Insured
(Alternative Minimum Tax)
8,155 Lee County, Florida, Solid Waste System Revenue Refunding Bonds, 10/11 at 100.00 Aaa 8,695,187
Series 2001, 5.625%, 10/01/13 - MBIA Insured (Alternative Minimum
Tax)
Miami-Dade County, Florida, Aviation Revenue Bonds,
Miami International Airport, Series 2002:
7,165 5.625%, 10/01/15 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 AAA 7,763,994
5,600 5.750%, 10/01/16 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 AAA 6,074,488
10,000 5.125%, 10/01/21 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 AAA 10,434,000
2,000 5.250%, 10/01/22 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 AAA 2,098,800
1,000 Tallahassee, Florida, Energy System Revenue Bonds, Series 2005, 10/15 at 100.00 AAA 1,058,030
5.000%, 10/01/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
49,305 Total Florida 52,291,653
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.2% (1.4% OF TOTAL INVESTMENTS)
6,925 Atlanta and Fulton County Recreation Authority, Georgia, Guaranteed 12/15 at 100.00 AAA 7,343,686
Revenue Bonds, Park Improvement, Series 2005A, 5.000%, 12/01/30 -
MBIA Insured
1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 2004, 11/14 at 100.00 AAA 1,059,280
5.000%, 11/01/22 - FSA Insured
1,695 Georgia Housing and Finance Authority, Single Family Mortgage 12/11 at 100.00 AAA 1,751,342
Bonds, Series 2002B-2, 5.500%, 6/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,620 Total Georgia 10,154,308
------------------------------------------------------------------------------------------------------------------------------------
55
Nuveen Insured Dividend Advantage Municipal Fund (NVG) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 1.0% (0.6% OF TOTAL INVESTMENTS)
Idaho Housing and Finance Association, Grant and Revenue
Anticipation Bonds, Federal Highway Trust Funds, Series 2006:
$ 3,000 5.000%, 7/15/23 - MBIA Insured 7/16 at 100.00 Aaa $ 3,215,880
1,130 5.000%, 7/15/24 - MBIA Insured 7/16 at 100.00 Aaa 1,209,518
------------------------------------------------------------------------------------------------------------------------------------
4,130 Total Idaho 4,425,398
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 12.9% (8.3% OF TOTAL INVESTMENTS)
10,000 Bolingbrook, Illinois, General Obligation Bonds, Series 2002A, 1/12 at 100.00 AAA 10,718,400
5.375%, 1/01/38 (Pre-refunded 1/01/12) - FGIC Insured
1,305 Chicago, Illinois, General Obligation Bonds, Series 2001A, 5.500%, 1/11 at 101.00 AAA 1,384,696
1/01/38 - MBIA Insured
Chicago, Illinois, General Obligation Bonds, Series 2001A:
50 5.500%, 1/01/38 (Pre-refunded 1/01/11) - MBIA Insured 1/11 at 101.00 AAA 53,523
3,645 5.500%, 1/01/38 (Pre-refunded 1/01/11) - MBIA Insured 1/11 at 101.00 AAA 3,901,790
Chicago, Illinois, Second Lien Passenger Facility Charge Revenue
Bonds, O'Hare International Airport, Series 2001C:
4,250 5.500%, 1/01/16 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,496,840
4,485 5.500%, 1/01/17 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,737,640
4,730 5.500%, 1/01/18 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,994,785
2,930 5.500%, 1/01/19 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 3,089,919
3,600 Chicago, Illinois, Third Lien General Airport Revenue Bonds, O'Hare 1/16 at 100.00 AAA 3,892,464
International Airport, Series 2005A, 5.250%, 1/01/24 - MBIA
Insured
3,000 Chicago, Illinois, Third Lien General Airport Revenue Refunding 1/12 at 100.00 AAA 3,216,780
Bonds, O'Hare International Airport, Series 2002A, 5.750%,
1/01/17 - MBIA Insured (Alternative Minimum Tax)
4,000 Cicero, Cook County, Illinois, General Obligation Corporate Purpose 12/12 at 101.00 AAA 4,215,240
Bonds, Series 2002, 5.000%, 12/01/21 - MBIA Insured
730 DuPage County Community School District 200, Wheaton, Illinois, 10/13 at 100.00 Aaa 781,188
General Obligation Bonds, Series 2003C, 5.250%, 10/01/22 - FSA
Insured
770 DuPage County Community School District 200, Wheaton, Illinois, 10/13 at 100.00 Aaa 836,928
General Obligation Bonds, Series 2003C, 5.250%, 10/01/22
(Pre-refunded 10/01/13) - FSA Insured
4,000 Illinois Toll Highway Authority, State Toll Highway Authority 7/16 at 100.00 AAA 4,258,440
Revenue Bonds, Series 2006, 5.000%, 1/01/26 - FSA Insured
5,000 Illinois, General Obligation Bonds, Illinois FIRST Program, Series 4/12 at 100.00 AAA 5,294,750
2002, 5.250%, 4/01/23 - FSA Insured
2,700 University of Illinois, Certificates of Participation, Utility 8/11 at 100.00 AAA 2,839,590
Infrastructure Projects, Series 2001A, 5.000%, 8/15/20
(Pre-refunded 8/15/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
55,195 Total Illinois 58,712,973
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 15.6% (10.0% OF TOTAL INVESTMENTS)
3,380 Evansville, Indiana, Sewerage Works Revenue Refunding Bonds, Series 7/13 at 100.00 AAA 3,584,794
2003A, 5.000%, 7/01/20 - AMBAC Insured
Indiana Bond Bank, Special Program Bonds, Hendricks County
Redevelopment District, Series 2002D:
2,500 5.375%, 4/01/23 - AMBAC Insured 4/12 at 100.00 AAA 2,652,050
7,075 5.250%, 4/01/26 - AMBAC Insured 4/12 at 100.00 AAA 7,462,922
7,000 5.250%, 4/01/30 - AMBAC Insured 4/12 at 100.00 AAA 7,383,810
10,000 Indiana Health Facility Financing Authority, Hospital Revenue 7/12 at 100.00 AAA 10,466,200
Bonds, Marion General Hospital, Series 2002, 5.250%, 7/01/32 -
AMBAC Insured
25,000 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 26,849,248
Waterworks Project, Series 2002A, 5.250%, 7/01/33 (Pre-refunded
7/01/12) - MBIA Insured
Northern Wells Community School Building Corporation, Wells County,
Indiana, First Mortgage Bonds, Series 2001:
420 5.250%, 1/15/19 (Pre-refunded 7/15/12) - FGIC Insured 7/12 at 100.00 AAA 451,282
430 5.250%, 7/15/19 (Pre-refunded 7/15/12) - FGIC Insured 7/12 at 100.00 AAA 462,026
1,675 5.400%, 7/15/23 (Pre-refunded 7/15/12) - FGIC Insured 7/12 at 100.00 AAA 1,811,563
56
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA (continued)
$ 6,960 Valparaiso Middle School Building Corporation, Indiana, First 1/13 at 100.00 AAA $ 7,279,116
Mortgage Refunding Bonds, Series 2002, 5.000%, 7/15/24 - MBIA
Insured
2,490 Whitley County Middle School Building Corporation, Columbia City, 7/13 at 100.00 AAA 2,641,716
Indiana, First Mortgage Bonds, Series 2003, 5.000%, 1/15/18 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
66,930 Total Indiana 71,044,727
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.4% (2.2% OF TOTAL INVESTMENTS)
3,280 Louisiana Public Facilities Authority, Revenue Bonds, Archdiocese 7/17 at 100.00 Aaa 3,178,714
of New Orleans, Series 2007, Drivers 1755, 5.486%, 7/01/37 -
CIFG Insured (IF)
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006:
780 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 799,820
8,280 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AAA 8,145,368
3,085 New Orleans, Louisiana, General Obligation Refunding Bonds, Series 9/12 at 100.00 AAA 3,228,545
2002, 5.125%, 9/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
15,425 Total Louisiana 15,352,447
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.2% (0.7% OF TOTAL INVESTMENTS)
2,630 Massachusetts College Building Authority, Project Revenue Bonds, 5/16 at 100.00 AAA 2,793,455
Series 2006A, 5.000%, 5/01/31 - AMBAC Insured
1,550 Massachusetts Water Resources Authority, General Revenue Bonds, 8/17 at 100.00 AAA 1,706,752
Series 2005A, 5.250%, 8/01/26 - MBIA Insured
800 Massachusetts Water Resources Authority, General Revenue Bonds, 2/17 at 100.00 Aaa 761,592
Series 2007, Residual Trust 7039, 5.140%, 8/01/46 - FSA Insured
(IF)
------------------------------------------------------------------------------------------------------------------------------------
4,980 Total Massachusetts 5,261,799
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.4% (1.6% OF TOTAL INVESTMENTS)
1,600 St. Louis County Pattonville School District R3, Missouri, General 3/14 at 100.00 AAA 1,731,424
Obligation Bonds, Series 2004, 5.250%, 3/01/19 - FSA Insured
8,735 St. Louis, Missouri, Airport Revenue Bonds, Airport Development 7/11 at 100.00 AAA 9,258,401
Program, Series 2001A, 5.250%, 7/01/31 (Pre-refunded 7/01/11) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,335 Total Missouri 10,989,825
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.9% (1.3% OF TOTAL INVESTMENTS)
6,360 Lincoln, Nebraska, Electric System Revenue Bonds, Series 2005, 9/15 at 100.00 AA 6,725,827
5.000%, 9/01/32
Municipal Energy Agency of Nebraska, Power Supply System Revenue
Bonds, Series 2003A:
1,000 5.250%, 4/01/20 - FSA Insured 4/13 at 100.00 AAA 1,074,820
1,000 5.250%, 4/01/21 - FSA Insured 4/13 at 100.00 AAA 1,066,360
------------------------------------------------------------------------------------------------------------------------------------
8,360 Total Nebraska 8,867,007
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.0% (1.3% OF TOTAL INVESTMENTS)
8,750 Truckee Meadows Water Authority, Nevada, Water Revenue Bonds, 7/11 at 100.00 AAA 9,274,300
Series 2001A, 5.250%, 7/01/34 (Pre-refunded 7/01/11) - FSA
Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,150 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 2,402,475
System Bonds, Series 2006A, 5.250%, 12/15/20
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 4.9% (3.2% OF TOTAL INVESTMENTS)
1,120 Dormitory Authority of the State of New York, FHA-Insured Mortgage 2/15 at 100.00 AAA 1,185,912
Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/23
- FGIC Insured
3,660 Dormitory Authority of the State of New York, Revenue Bonds, Mental 2/15 at 100.00 AAA 3,881,357
Health Services Facilities Improvements, Series 2005B, 5.000%,
2/15/23 - AMBAC Insured
57
Nuveen Insured Dividend Advantage Municipal Fund (NVG) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 3,130 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA $ 3,086,963
Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
2,400 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 AAA 2,324,688
Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA Insured (UB)
1,500 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 AAA 1,592,550
Revenue Bonds, Series 2005B, 5.000%, 11/15/30 - AMBAC Insured
10,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 10,434,400
Revenue Refunding Bonds, Series 2002A, 5.000%, 11/15/30 - FSA
Insured
------------------------------------------------------------------------------------------------------------------------------------
21,810 Total New York 22,505,870
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.6% (0.4% OF TOTAL INVESTMENTS)
2,435 North Carolina Medical Care Commission, FHA-Insured Mortgage 10/13 at 100.00 AAA 2,619,963
Revenue Bonds, Betsy Johnson Regional Hospital Project, Series
2003, 5.375%, 10/01/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.8% (1.2% OF TOTAL INVESTMENTS)
Oregon, General Obligation Veterans Welfare Bonds, Series 82:
5,560 5.375%, 12/01/31 12/11 at 100.00 AA- 5,736,085
2,590 5.500%, 12/01/42 12/11 at 100.00 AA- 2,671,792
------------------------------------------------------------------------------------------------------------------------------------
8,150 Total Oregon 8,407,877
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.4% (2.2% OF TOTAL INVESTMENTS)
4,500 Allegheny County, Pennsylvania, Airport Revenue Refunding Bonds, No Opt. Call AAA 4,900,410
Pittsburgh International Airport, Series 1997A, 5.750%, 1/01/13
- MBIA Insured (Alternative Minimum Tax)
4,125 Pennsylvania Public School Building Authority, Lease Revenue Bonds, 12/16 at 100.00 AAA 4,109,490
School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 -
FSA Insured (UB)
1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 6/16 at 100.00 AAA 1,121,453
2006A, 5.000%, 12/01/26 - AMBAC Insured
2,000 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 2,140,940
Bonds, Series 2003B, 5.250%, 11/15/18 - FSA Insured
2,000 Reading School District, Berks County, Pennsylvania, General 1/16 at 100.00 AAA 2,152,600
Obligation Bonds, Series 2005, 5.000%, 1/15/19 - FSA Insured
1,000 State Public School Building Authority, Pennsylvania, Lease Revenue 6/13 at 100.00 AAA 1,069,390
Bonds, Philadelphia School District, Series 2003, 5.000%, 6/01/23
(Pre-refunded 6/01/13) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
14,675 Total Pennsylvania 15,494,283
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,225 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, 8/01/21 No Opt. Call AAA 1,385,046
- CIFG Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.5% (0.9% OF TOTAL INVESTMENTS)
1,950 Greenville County School District, South Carolina, Installment 12/16 at 100.00 AAA 2,071,212
Purchase Revenue Bonds, Series 2006, 5.000%, 12/01/28 - FSA
Insured
Greenville, South Carolina, Tax Increment Revenue Improvement
Bonds, Series 2003:
1,000 5.500%, 4/01/17 - MBIA Insured 4/13 at 100.00 AAA 1,092,540
2,300 5.000%, 4/01/21 - MBIA Insured 4/13 at 100.00 AAA 2,439,380
1,000 Scago Educational Facilities Corporation, South Carolina, 10/15 at 100.00 AAA 1,062,400
Installment Purchase Revenue Bonds, Spartanburg County School
District 5, Series 2005, 5.000%, 4/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,250 Total South Carolina 6,665,532
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 9.3% (6.0% OF TOTAL INVESTMENTS)
Memphis, Tennessee, Sanitary Sewerage System Revenue Bonds, Series
2004:
1,495 5.000%, 10/01/19 - FSA Insured 10/14 at 100.00 AAA 1,596,047
1,455 5.000%, 10/01/20 - FSA Insured 10/14 at 100.00 AAA 1,551,408
1,955 5.000%, 10/01/21 - FSA Insured 10/14 at 100.00 AAA 2,083,248
58
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE (continued)
$ 10,000 Memphis-Shelby County Sports Authority, Tennessee, Revenue Bonds, 11/12 at 100.00 AAA $ 10,711,300
Memphis Arena, Series 2002A, 5.125%, 11/01/28
(Pre-refunded 11/01/12) - AMBAC Insured
10,000 Memphis-Shelby County Sports Authority, Tennessee, Revenue Bonds, 11/12 at 100.00 AAA 10,495,300
Memphis Arena, Series 2002B,5.125%, 11/01/29
(Pre-refunded 11/01/12) - AMBAC Insured
15,195 Tennessee State School Bond Authority, Higher Educational 5/12 at 100.00 AAA 16,272,476
Facilities Second Program Bonds, Series 2002A, 5.250%, 5/01/32
(Pre-refunded 5/01/12) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
40,100 Total Tennessee 42,709,779
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 27.4% (17.6% OF TOTAL INVESTMENTS)
3,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 AAA 3,753,365
Refunding and Improvement Bonds, Series 2001A, 5.750%, 11/01/13 -
FGIC Insured (Alternative Minimum Tax)
10,000 Gainesville Hospital District, Texas, Limited Tax General 8/11 at 100.00 Aaa 10,446,400
Obligation Bonds, Series 2002, 5.375%, 8/15/32 - MBIA Insured
1,210 Galveston, Texas, General Obligation Bonds, Series 2001, 5.250%, 5/11 at 100.00 AAA 1,268,625
5/01/21 - AMBAC Insured
2,435 Galveston, Texas, General Obligation Bonds, Series 2001, 5.250%, 5/11 at 100.00 AAA 2,573,771
5/01/21 (Pre-refunded 5/01/11) - AMBAC Insured
Harris County Health Facilities Development Corporation,
Texas, Thermal Utility Revenue Bonds, TECO Project, Series
2003:
2,240 5.000%, 11/15/16 - MBIA Insured 11/13 at 100.00 AAA 2,363,558
2,355 5.000%, 11/15/17 - MBIA Insured 11/13 at 100.00 AAA 2,477,978
13,000 Houston Area Water Corporation, Texas, Contract Revenue Bonds, 3/12 at 100.00 AAA 13,595,920
Northeast Water Purification Plant, Series 2002, 5.125%, 3/01/32
- FGIC Insured
2,500 Houston Higher Education Finance Corporation, Texas, Revenue Bonds, 11/09 at 101.00 AAA 2,624,350
Rice University, Series 1999A, 5.375%, 11/15/29
(Pre-refunded 11/15/09)
1,000 Houston, Texas, First Lien Combined Utility System Revenue Bonds, 5/14 at 100.00 AAA 1,079,220
Series 2004A, 5.250%, 5/15/24 - FGIC Insured
4,345 San Antonio, Texas, Water System Senior Lien Revenue Refunding 5/12 at 100.00 AAA 4,673,917
Bonds, Series 2002, 5.500%, 5/15/17 - FSA Insured
5,970 Texas Department of Housing and Community Affairs, Residential 7/11 at 100.00 AAA 6,141,578
Mortgage Revenue Bonds, Series 2001A, 5.350%, 7/01/33
(Alternative Minimum Tax)
8,635 Texas Department of Housing and Community Affairs, Single Family 3/12 at 100.00 AAA 8,926,345
Mortgage Bonds, Series 2002B, 5.550%, 9/01/33 - MBIA Insured
(Alternative Minimum Tax)
Texas Public Finance Authority, Revenue Bonds, Texas Southern
University Financing System, Series 2002:
3,520 5.125%, 11/01/20 - MBIA Insured 5/12 at 100.00 Aaa 3,724,934
3,520 5.125%, 11/01/21 - MBIA Insured 5/12 at 100.00 Aaa 3,724,934
Texas Student Housing Authority, Revenue Bonds, Austin Project,
Senior Series 2001A:
9,400 5.375%, 1/01/23 - MBIA Insured 1/12 at 102.00 Aaa 10,109,606
11,665 5.500%, 1/01/33 - MBIA Insured 1/12 at 102.00 Aaa 12,627,946
5,000 Texas Water Development Board, Senior Lien State Revolving Fund 1/10 at 100.00 AAA 5,187,250
Revenue Bonds, Series 1999B, 5.250%, 7/15/17
9,145 Texas, General Obligation Bonds, Veterans Housing Assistance 6/12 at 100.00 Aa1 9,563,292
Program Fund II, Series 2002A-1, 5.250%, 12/01/22 (Alternative
Minimum Tax)
Williamson County, Texas, General Obligation Bonds, Series 2002:
3,500 5.200%, 2/15/21 (Pre-refunded 2/15/12) - FSA Insured 2/12 at 100.00 AAA 3,726,030
3,000 5.250%, 2/15/22 (Pre-refunded 2/15/12) - FSA Insured 2/12 at 100.00 AAA 3,200,250
7,340 5.250%, 2/15/23 (Pre-refunded 2/15/12) - FSA Insured 2/12 at 100.00 AAA 7,829,945
5,000 5.250%, 2/15/25 (Pre-refunded 2/15/12) - FSA Insured 2/12 at 100.00 AAA 5,333,750
------------------------------------------------------------------------------------------------------------------------------------
118,280 Total Texas 124,952,964
------------------------------------------------------------------------------------------------------------------------------------
59
Nuveen Insured Dividend Advantage Municipal Fund (NVG) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 14.8% (9.5% OF TOTAL INVESTMENTS)
$ 5,385 Energy Northwest, Washington Public Power, Nine Canyon Wind Project 7/16 at 100.00 AAA $ 5,289,578
Revenue Bonds, Series 2006A, 4.500%, 7/01/30 - AMBAC Insured
6,600 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/12 at 100.00 AAA 7,079,820
Columbia Generating Station - Nuclear Project 2, Series 2002B,
5.350%, 7/01/18 - FSA Insured
7,675 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/12 at 100.00 AAA 8,283,551
Nuclear Project 1, Series 2002A, 5.500%, 7/01/15 - MBIA Insured
2,500 Port of Seattle, Washington, Revenue Refunding Bonds, Series 2002D, 11/12 at 100.00 AAA 2,721,250
5.750%, 11/01/15 - FGIC Insured (Alternative Minimum Tax)
2,200 Snohomish County School District 2, Everett, Washington, General 12/13 at 100.00 AAA 2,342,054
Obligation Bonds, Series 2003B, 5.000%, 6/01/17 - FSA Insured
3,255 Thurston and Pierce Counties School District, Washington, General 6/13 at 100.00 Aaa 3,515,791
Obligation Bonds, Yelm Community Schools, Series 2003, 5.250%,
12/01/16 - FSA Insured
Washington State Economic Development Finance Authority,
Wastewater Revenue Bonds, LOTT Project, Series 2002:
2,000 5.500%, 6/01/17 - AMBAC Insured 6/12 at 100.00 Aaa 2,152,580
4,325 5.125%, 6/01/22 - AMBAC Insured 6/12 at 100.00 Aaa 4,556,950
10,000 Washington State Healthcare Facilities Authority, Revenue Bonds, 10/11 at 100.00 Aaa 10,565,300
Children's Hospital and Regional Medical Center, Series 2001,
5.125%, 10/01/31 (Pre-refunded 10/01/11) - AMBAC Insured
15,000 Washington State Healthcare Facilities Authority, Revenue Bonds, 8/13 at 102.00 AAA 15,740,849
Harrison Memorial Hospital, Series 1998, 5.000%, 8/15/28 - AMBAC
Insured
5,170 Whitman County School District 267, Pullman, Washington, General 6/12 at 100.00 Aaa 5,448,198
Obligation Bonds, Series 2002, 5.000%, 12/01/20 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
64,110 Total Washington 67,695,921
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.8% (1.8% OF TOTAL INVESTMENTS)
11,950 Wisconsin, Transportation Revenue Refunding Bonds, Series 2002-1, 7/12 at 100.00 AAA 12,752,682
5.125%, 7/01/18 (Pre-refunded 7/01/12) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 700,920 Total Investments (cost $671,839,024) - 155.3% 709,402,818
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (6.4)% (29,025,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 9,471,745
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.0)% (233,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 456,849,563
=====================================================================================================================
At least 80% of the Fund's net assets (including net assets attributable
to Preferred shares) are invested in municipal securities that are
either covered by Original Issue Insurance, Secondary Market Insurance
or Portfolio Insurance which ensures the timely payment of principal and
interest. Up to 20% of the Fund's net assets (including net assets
attributable to Preferred shares) may be invested in municipal
securities that are (i) either backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency securities (also
ensuring the timely payment of principal and interest), or (ii) rated,
at the time of investment, within the four highest grades (Baa or BBB or
better by Moody's, S&P or Fitch) or unrated but judged to be of
comparable quality by the Adviser.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's rating.
Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment grade.
N/R Not rated.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
(IF) Inverse floating rate investment.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
60
Nuveen Insured Tax-Free Advantage Municipal Fund (NEA)
Portfolio of
INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 8.2% (5.5% OF TOTAL INVESTMENTS)
$ 5,655 Colbert County-Northwest Health Care Authority, Alabama, Revenue 6/13 at 101.00 Baa3 $ 5,944,762
Bonds, Helen Keller Hospital, Series 2003, 5.750%, 6/01/27
3,100 Huntsville Healthcare Authority, Alabama, Revenue Bonds, Series 5/12 at 102.00 AAA 3,387,990
1998A, 5.400%, 6/01/22 (Pre-refunded 5/14/12) - MBIA Insured
6,280 Jefferson County, Alabama, Sewer Revenue Capital Improvement 8/12 at 100.00 AAA 6,670,742
Warrants, Series 2002D, 5.000%, 2/01/32 (Pre-refunded 8/01/12) -
FGIC Insured
1,750 Montgomery, Alabama, General Obligation Warrants, Series 2003, 5/12 at 101.00 AAA 1,857,048
5.000%, 5/01/21 - AMBAC Insured
4,500 Sheffield, Alabama, Electric Revenue Bonds, Series 2003, 5.500%, 7/13 at 100.00 Aaa 4,846,185
7/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
21,285 Total Alabama 22,706,727
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 3.8% (2.5% OF TOTAL INVESTMENTS)
10,000 Maricopa County Pollution Control Corporation, Arizona, Revenue 11/12 at 100.00 AAA 10,471,800
Bonds, Arizona Public Service Company - Palo Verde Project,
Series 2002A, 5.050%, 5/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 29.0% (19.3% OF TOTAL INVESTMENTS)
26,300 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 27,416,696
Department of General Services, Capital East End Project, Series
2002A, 5.000%, 12/01/27 - AMBAC Insured
7,500 California, General Obligation Bonds, Series 2004, 5.000%, 4/01/31 4/14 at 100.00 AAA 8,089,275
- AMBAC Insured
13,500 California, General Obligation Refunding Bonds, Series 2002, 4/12 at 100.00 AAA 14,246,414
5.250%, 4/01/30 - XLCA Insured
2,910 Cathedral City Public Financing Authority, California, Tax 8/12 at 102.00 AAA 3,063,357
Allocation Bonds, Housing Set-Aside, Series 2002D, 5.000%,
8/01/26 - MBIA Insured
250 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 250,770
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1,
5.125%, 6/01/47
2,500 Irvine Public Facilities and Infrastructure Authority, California, 9/07 at 103.00 AAA 2,580,900
Assessment Revenue Bonds, Series 2003C, 5.000%, 9/02/23 - AMBAC
Insured
4,000 Montara Sanitation District, California, General Obligation Bonds, 8/11 at 101.00 AAA 4,170,200
Series 2003, 5.000%, 8/01/28 - FGIC Insured
Plumas County, California, Certificates of Participation, Capital
Improvement Program, Series 2003A:
1,130 5.250%, 6/01/19 - AMBAC Insured 6/13 at 101.00 AAA 1,218,343
1,255 5.250%, 6/01/21 - AMBAC Insured 6/13 at 101.00 AAA 1,349,175
1,210 Redding Joint Powers Financing Authority, California, Lease Revenue 3/13 at 100.00 AAA 1,263,748
Bonds, Capital Improvement Projects, Series 2003A, 5.000%,
3/01/23 - AMBAC Insured
3,750 Sacramento Municipal Utility District, California, Electric Revenue 8/13 at 100.00 AAA 3,936,338
Bonds, Series 2003R, 5.000%, 8/15/28 - MBIA Insured
1,500 San Diego Community College District, California, General 5/13 at 100.00 AAA 1,567,950
Obligation Bonds, Series 2003A, 5.000%, 5/01/28 - FSA Insured
3,000 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/10 at 101.00 AAA 3,158,640
Merged Area Redevelopment Project, Series 2002, 5.000%, 8/01/32
(Pre-refunded 8/01/10) - MBIA Insured
1,055 Turlock Irrigation District, California, Certificates of 1/13 at 100.00 AAA 1,099,563
Participation, Series 2003A, 5.000%, 1/01/28 - MBIA Insured
6,300 University of California, Revenue Bonds, Multi-Purpose Projects, 5/13 at 100.00 AAA 6,586,902
Series 2003A, 5.000%, 5/15/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
76,160 Total California 79,998,271
------------------------------------------------------------------------------------------------------------------------------------
61
Nuveen Insured Tax-Free Advantage Municipal Fund (NEA) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 3.7% (2.5% OF TOTAL INVESTMENTS)
Bowles Metropolitan District, Colorado, General Obligation Bonds,
Series 2003:
$ 4,300 5.500%, 12/01/23 - FSA Insured 12/13 at 100.00 AAA $ 4,696,073
3,750 5.500%, 12/01/28 - FSA Insured 12/13 at 100.00 AAA 4,079,513
1,450 Colorado Educational and Cultural Facilities Authority, Charter 8/14 at 100.00 AAA 1,550,790
School Revenue Bonds, Peak-to-Peak Charter School, Series 2004,
5.250%, 8/15/24 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
9,500 Total Colorado 10,326,376
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.2% (0.1% OF TOTAL INVESTMENTS)
500 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 Aaa 490,290
Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals
1606, 5.462%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.2% (0.8% OF TOTAL INVESTMENTS)
3,000 Pinellas County Health Facilities Authority, Florida, Revenue 5/13 at 100.00 Aa3 (4) 3,277,170
Bonds, Baycare Health System, Series 2003, 5.500%, 11/15/27
(Pre-refunded 5/15/13)
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.0% (1.3% OF TOTAL INVESTMENTS)
1,410 DeKalb County, Georgia, Water and Sewer Revenue Bonds, Series 10/16 at 100.00 AAA 1,499,775
2006A, 5.000%, 10/01/35 - FSA Insured
3,825 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales Tax 1/13 at 100.00 AAA 4,074,008
Revenue Bonds, Second Indenture Series 2002, 5.000%, 7/01/32
(Pre-refunded 1/01/13) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,235 Total Georgia 5,573,783
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 3.7% (2.5% OF TOTAL INVESTMENTS)
905 Cook County School District 100, Berwyn South, Illinois, General 12/13 at 100.00 Aaa 985,473
Obligation Refunding Bonds, Series 2003B, 5.250%, 12/01/21
(Pre-refunded 12/01/13) - FSA Insured
Cook County School District 145, Arbor Park, Illinois,
General Obligation Bonds, Series 2004:
3,285 5.125%, 12/01/20 - FSA Insured 12/14 at 100.00 Aaa 3,521,553
2,940 5.125%, 12/01/23 - FSA Insured 12/14 at 100.00 Aaa 3,138,038
2,500 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/13 at 100.00 A- 2,595,775
Hospital, Series 2003, 5.250%, 7/01/23
------------------------------------------------------------------------------------------------------------------------------------
9,630 Total Illinois 10,240,839
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 8.8% (5.8% OF TOTAL INVESTMENTS)
2,500 Evansville, Indiana, Sewerage Works Revenue Refunding Bonds, Series 7/13 at 100.00 AAA 2,622,800
2003A, 5.000%, 7/01/23 - AMBAC Insured
2,190 Indiana Bond Bank, Advance Purchase Funding Bonds, Common School 8/13 at 100.00 AAA 2,308,610
Fund, Series 2003B, 5.000%, 8/01/19 - MBIA Insured
1,000 Indiana University, Student Fee Revenue Bonds, Series 2003O, 8/13 at 100.00 AAA 1,050,830
5.000%, 8/01/22 - FGIC Insured
IPS Multi-School Building Corporation, Indiana, First Mortgage
Revenue Bonds, Series 2003:
11,020 5.000%, 7/15/19 (Pre-refunded 7/15/13) - MBIA Insured 7/13 at 100.00 AAA 11,803,191
6,000 5.000%, 7/15/20 (Pre-refunded 7/15/13) - MBIA Insured 7/13 at 100.00 AAA 6,426,420
------------------------------------------------------------------------------------------------------------------------------------
22,710 Total Indiana 24,211,851
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 2.4% (1.6% OF TOTAL INVESTMENTS)
6,250 Kansas Development Finance Authority, Board of Regents, Revenue 4/13 at 102.00 AAA 6,659,813
Bonds, Scientific Research and Development Facilities Projects,
Series 2003C, 5.000%, 10/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.4% (0.3% OF TOTAL INVESTMENTS)
985 Kentucky State Property and Buildings Commission, Revenue Refunding 8/13 at 100.00 AAA 1,054,994
Bonds, Project 77, Series 2003, 5.000%, 8/01/23 (Pre-refunded
8/01/13) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.2% (1.5% OF TOTAL INVESTMENTS)
5,785 New Orleans, Louisiana, General Obligation Refunding Bonds, Series 12/12 at 100.00 AAA 6,116,133
2002, 5.300%, 12/01/27 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
62
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 5.0% (3.3% OF TOTAL INVESTMENTS)
$ 9,000 Massachusetts Bay Transportation Authority, Senior Sales Tax 7/12 at 100.00 AAA $ 9,556,380
Revenue Refunding Bonds, Series 2002A, 5.000%, 7/01/27
(Pre-refunded 7/01/12) - FGIC Insured
1,125 Massachusetts Development Finance Authority, Revenue Bonds, 9/13 at 100.00 A1 1,180,710
Middlesex School, Series 2003, 5.125%, 9/01/23
3,000 Massachusetts Turnpike Authority, Metropolitan Highway System 7/07 at 102.00 AAA 3,044,910
Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
13,125 Total Massachusetts 13,782,000
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 11.5% (7.7% OF TOTAL INVESTMENTS)
6,130 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, 7/13 at 100.00 AAA 6,546,472
Series 2003A, 5.000%, 7/01/23 (Pre-refunded 7/01/13) - MBIA
Insured
4,465 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/13 at 100.00 AAA 4,694,278
Refunding Bonds, Series 2003C, 5.000%, 7/01/22 - MBIA Insured
10,800 Michigan Strategic Fund, Limited Obligation Resource Recovery 12/12 at 100.00 AAA 11,348,532
Revenue Refunding Bonds, Detroit Edison Company, Series 2002D,
5.250%, 12/15/32 - XLCA Insured
2,250 Romulus Community Schools, Wayne County, Michigan, General 5/11 at 100.00 AA 2,359,013
Obligation Refunding Bonds, Series 2001, 5.250%, 5/01/25
6,500 Wayne County, Michigan, Limited Tax General Obligation Airport 12/11 at 101.00 AAA 6,774,365
Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport,
Series 2001A, 5.000%, 12/01/30 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
30,145 Total Michigan 31,722,660
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.1% (0.7% OF TOTAL INVESTMENTS)
240 Clay County Public School District 53, Liberty, Missouri, General 3/14 at 100.00 AAA 259,116
Obligation Bonds, Series 2004, 5.250%, 3/01/24 - FSA Insured
215 Clay County Public School District 53, Liberty, Missouri, General 3/14 at 100.00 AAA 232,125
Obligation Bonds, Series 2004, 5.250%, 3/01/23 - FSA Insured
Clay County Public School District 53, Liberty, Missouri,
General Obligation Bonds, Series 2004:
1,110 5.250%, 3/01/23 (Pre-refunded 3/01/14) - FSA Insured 3/14 at 100.00 AAA 1,209,878
1,260 5.250%, 3/01/24 (Pre-refunded 3/01/14) - FSA Insured 3/14 at 100.00 AAA 1,373,375
------------------------------------------------------------------------------------------------------------------------------------
2,825 Total Missouri 3,074,494
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.9% (1.3% OF TOTAL INVESTMENTS)
5,000 Lincoln, Nebraska, Sanitary Sewerage System Revenue Refunding 6/13 at 100.00 AAA 5,230,300
Bonds, Series 2003, 5.000%, 6/15/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.8% (0.5% OF TOTAL INVESTMENTS)
1,975 New Mexico State University, Revenue Bonds, Series 2004, 5.000%, 4/14 at 100.00 AAA 2,101,874
4/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 10.9% (7.2% OF TOTAL INVESTMENTS)
20 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 19,176
Driver Trust 1649, 2006, 5.313%, 2/15/47 - MBIA Insured (IF)
1,960 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 1,933,050
Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
25,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 26,117,499
Revenue Refunding Bonds, Series 2002F, 5.000%, 11/15/31 -
MBIA Insured
1,850 New York State Urban Development Corporation, Service Contract 3/15 at 100.00 AAA 1,964,201
Revenue Bonds, Series 2005B, 5.000%, 3/15/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
28,830 Total New York 30,033,926
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 3.4% (2.2% OF TOTAL INVESTMENTS)
8,700 North Carolina Medical Care Commission, Revenue Bonds, Maria Parham 10/13 at 100.00 AA 9,222,000
Medical Center, Series 2003, 5.375%, 10/01/33 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
63
Nuveen Insured Tax-Free Advantage Municipal Fund (NEA) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.4% (0.3% OF TOTAL INVESTMENTS)
$ 1,000 Oklahoma Capitol Improvement Authority, State Facilities Revenue 7/15 at 100.00 AAA $ 1,062,960
Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 3.2% (2.1% OF TOTAL INVESTMENTS)
8,350 Oregon Health Sciences University, Revenue Bonds, Series 2002A, 1/13 at 100.00 AAA 8,709,134
5.000%, 7/01/32 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 8.9% (5.9% OF TOTAL INVESTMENTS)
3,000 Lehigh County General Purpose Authority, Pennsylvania, Hospital 8/13 at 100.00 Baa1 (4) 3,252,960
Revenue Bonds, St. Luke's Hospital of Bethlehem, Series 2003,
5.375%, 8/15/33 (Pre-refunded 8/15/13)
2,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 8/13 at 100.00 AAA 2,079,800
Ordinance, Fourth Series 1998, 5.000%, 8/01/32 - FSA Insured
925 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, 8/07 at 102.00 AAA 964,211
Series 1997A, 5.125%, 8/01/27 - AMBAC Insured (ETM)
4,075 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, 8/07 at 102.00 AAA 4,169,662
Series 1997A, 5.125%, 8/01/27 (Pre-refunded 8/01/07) - AMBAC
Insured
13,000 State Public School Building Authority, Pennsylvania, Lease Revenue 6/13 at 100.00 AAA 13,902,069
Bonds, Philadelphia School District, Series 2003, 5.000%, 6/01/33
(Pre-refunded 6/01/13) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
23,000 Total Pennsylvania 24,368,702
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 7.3% (4.9% OF TOTAL INVESTMENTS)
5,000 Florence County, South Carolina, Hospital Revenue Bonds, McLeod 11/14 at 100.00 AAA 5,356,500
Regional Medical Center, Series 2004A, 5.250%, 11/01/23 - FSA
Insured
Greenville County School District, South Carolina, Installment
Purchase Revenue Bonds, Series 2003:
3,000 5.000%, 12/01/22 12/13 at 100.00 AA- 3,130,590
1,785 5.000%, 12/01/23 12/13 at 100.00 AA- 1,860,613
1,365 Myrtle Beach, South Carolina, Water and Sewerage System Revenue 3/13 at 100.00 AAA 1,482,840
Refunding Bonds, Series 2003, 5.375%, 3/01/19
(Pre-refunded 3/01/13) - FGIC Insured
8,000 South Carolina Transportation Infrastructure Bank, Revenue Bonds, 10/12 at 100.00 Aaa 8,346,480
Series 2002A, 5.000%, 10/01/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
19,150 Total South Carolina 20,177,023
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 13.0% (8.6% OF TOTAL INVESTMENTS)
7,975 Fort Bend Independent School District, Fort Bend County, Texas, 8/10 at 100.00 AAA 8,230,599
General Obligation Bonds, Series 2000, 5.000%, 8/15/25
12,500 Grand Prairie Independent School District, Dallas County, Texas, 2/13 at 100.00 AAA 13,396,749
General Obligation Bonds, Series 2003, 5.125%, 2/15/31
(Pre-refunded 2/15/13) - FSA Insured
2,000 Houston, Texas, First Lien Combined Utility System Revenue Bonds, 5/14 at 100.00 AAA 2,158,440
Series 2004A, 5.250%, 5/15/25 - MBIA Insured
5,515 Houston, Texas, General Obligation Refunding Bonds, Series 2002, 3/12 at 100.00 AAA 5,863,713
5.250%, 3/01/20 - MBIA Insured
5,850 Katy Independent School District, Harris, Fort Bend and Waller 2/12 at 100.00 AAA 6,171,867
Counties, Texas, General Obligation Bonds, Series 2002A, 5.125%,
2/15/18
------------------------------------------------------------------------------------------------------------------------------------
33,840 Total Texas 35,821,368
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,500 Hampton, Virginia, Revenue Bonds, Convention Center Project, Series 1/13 at 100.00 AAA 1,573,410
2002, 5.125%, 1/15/28 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.1% (6.0% OF TOTAL INVESTMENTS)
4,945 Broadway Office Properties, King County, Washington, Lease Revenue 12/12 at 100.00 AAA 5,133,751
Bonds, Washington Project, Series 2002, 5.000%, 12/01/31 - MBIA
Insured
5,250 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AAA 5,465,303
Consolidated System Revenue Bonds, Series 2002C, 5.125%, 7/01/33
- AMBAC Insured
2,135 Kitsap County Consolidated Housing Authority, Washington, Revenue 7/13 at 100.00 Aaa 2,230,990
Bonds, Bremerton Government Center, Series 2003, 5.000%, 7/01/23
- MBIA Insured
64
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 1,935 Pierce County School District 343, Dieringer, Washington, General 6/13 at 100.00 Aaa $ 2,079,158
Obligation Refunding Bonds, Series 2003, 5.250%, 12/01/17 -
FGIC Insured
9,670 Washington State, General Obligation Bonds, Series 2003D, 5.000%, 6/13 at 100.00 AAA 10,155,531
12/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
23,935 Total Washington 25,064,733
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.2% (0.8% OF TOTAL INVESTMENTS)
3,000 West Virginia State Building Commission, Lease Revenue Refunding No Opt. Call AAA 3,388,830
Bonds, Regional Jail and Corrections Facility, Series 1998A,
5.375%, 7/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 6.6% (4.4% OF TOTAL INVESTMENTS)
1,190 Sun Prairie Area School District, Dane County, Wisconsin, General 3/14 at 100.00 Aaa 1,285,890
Obligation Bonds, Series 2004C, 5.250%, 3/01/24 - FSA Insured
4,605 Wisconsin Health and Educational Facilities Authority, Revenue 9/13 at 100.00 BBB+ 4,941,211
Bonds, Franciscan Sisters of Christian Charity Healthcare
Ministry, Series 2003A, 5.875%, 9/01/33
3,000 Wisconsin Health and Educational Facilities Authority, Revenue No Opt. Call Aaa 3,440,670
Bonds, Meriter Hospital Inc., Series 1992A, 6.000%, 12/01/22 -
FGIC Insured
3,600 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A- 3,683,232
Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.125%,
8/15/33
4,750 Wisconsin Health and Educational Facilities Authority, Revenue 8/08 at 102.00 AAA 4,914,208
Refunding Bonds, Wausau Hospital Inc., Series 1998A, 5.125%,
8/15/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
17,145 Total Wisconsin 18,265,211
------------------------------------------------------------------------------------------------------------------------------------
$ 392,560 Total Investments (cost $393,192,997) - 150.5% 414,726,672
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (0.5)% (1,305,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 6,169,149
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.3)% (144,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 275,590,821
=====================================================================================================================
At least 80% of the Fund's net assets (including net assets attributable
to Preferred shares) are invested in municipal securities that are
either covered by Original Issue Insurance, Secondary Market Insurance
or Portfolio Insurance which ensures the timely payment of principal and
interest. Up to 20% of the Fund's net assets (including net assets
attributable to Preferred shares) may be invested in municipal
securities that are (i) either backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency securities (also
ensuring the timely payment of principal and interest), or (ii) rated,
at the time of investment, within the four highest grades (Baa or BBB or
better by Moody's, S&P or Fitch) or unrated but judged to be of
comparable quality by the Adviser.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or Moody's rating.
Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
(IF) Inverse floating rate investment.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
65
Statement of
ASSETS AND LIABILITIES April 30, 2007 (Unaudited)
INSURED INSURED PREMIER
QUALITY OPPORTUNITY INSURED INCOME
(NQI) (NIO) (NIF)
--------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $883,569,834,
$1,852,064,037, $441,150,896,
$840,940,187, $671,839,024 and
$393,192,997, respectively) $ 931,823,149 $1,966,338,416 $ 467,203,669
Cash -- -- 1,271,420
Receivables:
Interest 12,791,435 29,494,449 7,382,891
Investments sold 16,180,000 29,524,227 170,000
Unrealized appreciation on forward swaps -- -- --
Other assets 71,175 195,438 38,946
--------------------------------------------------------------------------------------------
Total assets 960,865,759 2,025,552,530 476,066,926
--------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 1,023,020 6,771,515 --
Floating rate obligations 54,055,000 89,495,000 19,520,000
Payable for investments purchased 3,689,582 -- --
Accrued expenses:
Management fees 449,348 941,251 231,399
Other 186,535 393,714 164,780
Preferred share dividends payable 153,375 320,969 48,316
--------------------------------------------------------------------------------------------
Total liabilities 59,556,860 97,922,449 19,964,495
--------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 318,000,000 680,000,000 161,000,000
--------------------------------------------------------------------------------------------
Net assets applicable to
Common shares $ 583,308,899 $1,247,630,081 $ 295,102,431
============================================================================================
Common shares outstanding 38,295,278 81,138,036 19,419,608
============================================================================================
Net asset value per Common share
outstanding (net assets applicable to
Common shares, divided by Common
shares outstanding) $ 15.23 $ 15.38 $ 15.20
============================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
--------------------------------------------------------------------------------------------
Common shares, $.01 par value
per share $ 382,953 $ 811,380 $ 194,196
Paid-in surplus 534,535,198 1,128,874,275 269,465,714
Undistributed (Over-distribution of)
net investment income 1,046,714 3,075,130 (571,164)
Accumulated net realized gain (loss)
from investments and
derivative transactions (909,281) 594,917 (39,088)
Net unrealized appreciation
(depreciation) of investments
and derivative transactions 48,253,315 114,274,379 26,052,773
--------------------------------------------------------------------------------------------
Net assets applicable to
Common shares $ 583,308,899 $1,247,630,081 $ 295,102,431
============================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
============================================================================================
INSURED INSURED INSURED
PREMIUM DIVIDEND TAX-FREE
INCOME 2 ADVANTAGE ADVANTAGE
(NPX) (NVG) (NEA)
--------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $883,569,834,
$1,852,064,037, $441,150,896,
$840,940,187, $671,839,024 and
$393,192,997, respectively) $ 873,909,862 $ 709,402,818 $ 414,726,672
Cash 756,323 535,820 71,260
Receivables:
Interest 14,010,038 9,461,425 6,330,760
Investments sold -- -- --
Unrealized appreciation on forward swaps 205,469 -- --
Other assets 79,097 29,209 31,759
--------------------------------------------------------------------------------------------
Total assets 888,960,789 719,429,272 421,160,451
--------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- --
Floating rate obligations 91,720,000 29,025,000 1,305,000
Payable for investments purchased 3,116,228 -- --
Accrued expenses:
Management fees 396,456 204,601 103,037
Other 235,047 210,412 78,049
Preferred share dividends payable 126,234 139,696 83,544
--------------------------------------------------------------------------------------------
Total liabilities 95,593,965 29,579,709 1,569,630
--------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 268,900,000 233,000,000 144,000,000
--------------------------------------------------------------------------------------------
Net assets applicable to
Common shares $ 524,466,824 $ 456,849,563 $ 275,590,821
============================================================================================
Common shares outstanding 37,353,512 29,810,565 18,517,377
============================================================================================
Net asset value per Common share
outstanding (net assets applicable to
Common shares, divided by Common
shares outstanding) $ 14.04 $ 15.33 $ 14.88
============================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
--------------------------------------------------------------------------------------------
Common shares, $.01 par value
per share $ 373,535 $ 298,106 $ 185,174
Paid-in surplus 491,941,518 423,526,136 261,559,857
Undistributed (Over-distribution of)
net investment income (519,559) (777,976) (349,304)
Accumulated net realized gain (loss)
from investments and
derivative transactions (503,814) (3,760,497) (7,338,581)
Net unrealized appreciation
(depreciation) of investments
and derivative transactions 33,175,144 37,563,794 21,533,675
--------------------------------------------------------------------------------------------
Net assets applicable to
Common shares $ 524,466,824 $ 456,849,563 $ 275,590,821
============================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited
============================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
66
Statement of
OPERATIONS Six Months Ended April 30, 2007 (Unaudited)
INSURED INSURED PREMIER
QUALITY OPPORTUNITY INSURED INCOME
(NQI) (NIO) (NIF)
--------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 23,167,831 $ 48,019,439 $ 11,464,750
--------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,731,369 5,721,907 1,406,785
Preferred shares - auction fees 394,232 843,013 199,596
Preferred shares - dividend disbursing
agent fees 24,793 34,712 14,877
Shareholders' servicing agent fees
and expenses 39,007 64,008 13,333
Floating rate obligations interest
expense and fees 901,477 1,385,618 302,949
Custodian's fees and expenses 82,025 165,950 45,280
Directors'/Trustees' fees and expenses 1,143 17,549 4,244
Professional fees 18,039 40,041 11,820
Shareholders' reports - printing and
mailing expenses 42,986 95,164 24,723
Stock exchange listing fees 6,908 14,516 4,814
Investor relations expense 56,747 120,385 29,078
Portfolio insurance expense -- 9,403 --
Other expenses 26,461 43,002 14,190
--------------------------------------------------------------------------------------------
Total expenses before custodian fee credit
and expense reimbursement 4,325,187 8,555,268 2,071,689
Custodian fee credit (68,484) (110,700) (29,261)
Expense reimbursement -- -- --
--------------------------------------------------------------------------------------------
Net expenses 4,256,703 8,444,568 2,042,428
--------------------------------------------------------------------------------------------
Net investment income 18,911,128 39,574,871 9,422,322
--------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 251,736 599,408 125,602
Change in net unrealized appreciation
(depreciation) of investments (6,458,093) (12,296,742) (3,550,137)
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- --
--------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (6,206,357) (11,697,334) (3,424,535)
--------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (5,422,757) (11,446,632) (2,788,814)
From accumulated net realized gains -- (491,009) --
--------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Preferred shareholders (5,422,757) (11,937,641) (2,788,814)
--------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations $ 7,282,014 $ 15,939,896 $ 3,208,973
============================================================================================
INSURED INSURED INSURED
PREMIUM DIVIDEND TAX-FREE
INCOME 2 ADVANTAGE ADVANTAGE
(NPX) (NVG) (NEA)
--------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 20,427,928 $ 17,028,752 $ 9,928,501
--------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,410,449 2,102,429 1,293,015
Preferred shares - auction fees 333,362 288,856 178,520
Preferred shares - dividend disbursing
agent fees 24,793 14,877 9,918
Shareholders' servicing agent fees
and expenses 22,438 3,718 2,275
Floating rate obligations interest
expense and fees 1,319,179 485,049 18,009
Custodian's fees and expenses 86,736 68,859 47,049
Directors'/Trustees' fees and expenses 7,236 6,236 4,007
Professional fees 14,152 16,832 11,585
Shareholders' reports - printing and
mailing expenses 40,985 37,024 22,576
Stock exchange listing fees 6,682 1,257 780
Investor relations expense 50,626 43,655 26,279
Portfolio insurance expense -- -- --
Other expenses 19,854 16,048 10,860
--------------------------------------------------------------------------------------------
Total expenses before custodian fee credit
and expense reimbursement 4,336,492 3,084,840 1,624,873
Custodian fee credit (54,259) (55,357) (10,381)
Expense reimbursement -- (1,001,691) (667,128)
--------------------------------------------------------------------------------------------
Net expenses 4,282,233 2,027,792 947,364
--------------------------------------------------------------------------------------------
Net investment income 16,145,695 15,000,960 8,981,137
--------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 481,438 1,100,379 123,751
Change in net unrealized appreciation
(depreciation) of investments (4,597,729) (5,825,479) (1,036,638)
Change in net unrealized appreciation
(depreciation) of forward swaps 205,469 -- --
--------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (3,910,822) (4,725,100) (912,887)
--------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (4,649,475) (4,058,814) (2,460,129)
From accumulated net realized gains -- -- --
--------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Preferred shareholders (4,649,475) (4,058,814) (2,460,129)
--------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations $ 7,585,398 $ 6,217,046 $ 5,608,121
============================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
67
Statement of
CHANGES IN NET ASSETS (Unaudited)
INSURED QUALITY (NQI)
----------------------------------
SIX MONTHS YEAR
ENDED ENDED
4/30/07 10/31/06
------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 18,911,128 $ 37,757,102
Net realized gain (loss) from investments 251,736 (1,191,796)
Net realized gain (loss) from forward swaps -- --
Net increase from payments by the Adviser for losses realized
on the disposal of investments purchased in violation of
investment restrictions -- 27,762
Change in net unrealized appreciation (depreciation) of investments (6,458,093) 10,625,581
Change in net unrealized appreciation (depreciation) of forward swaps -- --
Distributions to Preferred Shareholders:
From net investment income (5,422,757) (9,396,258)
From accumulated net realized gains -- (565,042)
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations 7,282,014 37,257,349
------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (13,901,191) (30,556,817)
From accumulated net realized gains -- (2,966,866)
------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (13,901,191) (33,523,683)
------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions -- 417,197
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions -- 417,197
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares (6,619,177) 4,150,863
Net assets applicable to Common shares at the beginning of period 589,928,076 585,777,213
------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $ 583,308,899 $ 589,928,076
============================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of period $ 1,046,714 $ 1,459,534
============================================================================================================
INSURED OPPORTUNITY (NIO)
----------------------------------
SIX MONTHS YEAR
ENDED ENDED
4/30/07 10/31/06
------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 39,574,871 $ 79,500,285
Net realized gain (loss) from investments 599,408 1,907,145
Net realized gain (loss) from forward swaps -- --
Net increase from payments by the Adviser for losses realized
on the disposal of investments purchased in violation of
investment restrictions -- 42,338
Change in net unrealized appreciation (depreciation) of investments (12,296,742) 25,620,352
Change in net unrealized appreciation (depreciation) of forward swaps -- --
Distributions to Preferred Shareholders:
From net investment income (11,446,632) (19,724,590)
From accumulated net realized gains (491,009) (2,314,744)
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations 15,939,896 85,030,786
------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (29,939,943) (65,186,316)
From accumulated net realized gains (1,541,606) (11,310,643)
------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (31,481,549) (76,496,959)
------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions -- --
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions -- --
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares (15,541,653) 8,533,827
Net assets applicable to Common shares at the beginning of period 1,263,171,734 1,254,637,907
------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $ 1,247,630,081 $ 1,263,171,734
============================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of period $ 3,075,130 $ 4,886,834
============================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
68
PREMIER INSURED
INCOME (NIF)
----------------------------------
SIX MONTHS YEAR
ENDED ENDED
4/30/07 10/31/06
------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 9,422,322 $ 19,010,574
Net realized gain (loss) from investments 125,602 (164,691)
Net realized gain (loss) from forward swaps -- --
Net increase from payments by the Adviser for losses realized
on the disposal of investments purchased in violation of
investment restrictions -- --
Change in net unrealized appreciation (depreciation) of investments (3,550,137) 4,920,062
Change in net unrealized appreciation (depreciation) of forward swaps -- --
Distributions to Preferred Shareholders:
From net investment income (2,788,814) (4,829,477)
From accumulated net realized gains -- (363,000)
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations 3,208,973 18,573,468
------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (7,107,578) (15,341,495)
From accumulated net realized gains -- (1,854,574)
------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (7,107,578) (17,196,069)
------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions -- --
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions -- --
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares (3,898,605) 1,377,399
Net assets applicable to Common shares at the beginning of period 299,001,036 297,623,637
------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $ 295,102,431 $ 299,001,036
============================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of period $ (571,164) $ (97,094)
============================================================================================================
INSURED PREMIUM
INCOME 2 (NPX)
----------------------------------
SIX MONTHS YEAR
ENDED ENDED
4/30/07 10/31/06
------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 16,145,695 $ 31,991,464
Net realized gain (loss) from investments 481,438 287,636
Net realized gain (loss) from forward swaps -- --
Net increase from payments by the Adviser for losses realized
on the disposal of investments purchased in violation of
investment restrictions -- --
Change in net unrealized appreciation (depreciation) of investments (4,597,729) 10,227,465
Change in net unrealized appreciation (depreciation) of forward swaps 205,469 --
Distributions to Preferred Shareholders:
From net investment income (4,649,475) (8,461,641)
From accumulated net realized gains -- --
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations 7,585,398 34,044,924
------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (12,102,537) (25,568,479)
From accumulated net realized gains -- --
------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (12,102,537) (25,568,479)
------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions -- --
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions -- --
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares (4,517,139) 8,476,445
Net assets applicable to Common shares at the beginning of period 528,983,963 520,507,518
------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $ 524,466,824 $ 528,983,963
============================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of period $ (519,559) $ 86,758
============================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
69
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
INSURED DIVIDEND
ADVANTAGE (NVG)
----------------------------------
SIX MONTHS YEAR
ENDED ENDED
4/30/07 10/31/06
------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 15,000,960 $ 30,043,912
Net realized gain (loss) from investments 1,100,379 (1,161,908)
Net realized gain (loss) from forward swaps -- --
Net increase from payments by the Adviser for losses realized
on the disposal of investments purchased in violation of
investment restrictions -- --
Change in net unrealized appreciation (depreciation) of investments (5,825,479) 11,104,043
Change in net unrealized appreciation (depreciation) of forward swaps -- --
Distributions to Preferred Shareholders:
From net investment income (4,058,814) (7,450,053)
From accumulated net realized gains -- --
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations 6,217,046 32,535,994
------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (11,446,379) (24,516,934)
From accumulated net realized gains -- --
------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (11,446,379) (24,516,934)
------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions 42,076 --
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions 42,076 --
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares (5,187,257) 8,019,060
Net assets applicable to Common shares at the beginning of period 462,036,820 454,017,760
------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $ 456,849,563 $ 462,036,820
============================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of period $ (777,976) $ (273,743)
============================================================================================================
INSURED TAX-FREE
ADVANTAGE (NEA)
----------------------------------
SIX MONTHS YEAR
ENDED ENDED
4/30/07 10/31/06
------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 8,981,137 $ 17,939,799
Net realized gain (loss) from investments 123,751 70,087
Net realized gain (loss) from forward swaps -- 1,283,477
Net increase from payments by the Adviser for losses realized
on the disposal of investments purchased in violation of
investment restrictions -- --
Change in net unrealized appreciation (depreciation) of investments (1,036,638) 7,086,220
Change in net unrealized appreciation (depreciation) of forward swaps -- (1,430,007)
Distributions to Preferred Shareholders:
From net investment income (2,460,129) (4,393,243)
From accumulated net realized gains -- --
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations 5,608,121 20,556,333
------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (6,554,534) (13,664,277)
From accumulated net realized gains -- --
------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (6,554,534) (13,664,277)
------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions 31,257 --
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions 31,257 --
------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares (915,156) 6,892,056
Net assets applicable to Common shares at the beginning of period 276,505,977 269,613,921
------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $ 275,590,821 $ 276,505,977
============================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of period $ (349,304) $ (315,778)
============================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
70
Statement of
CASH FLOWS Six Months Ended April 30, 2007 (Unaudited)
INSURED
PREMIUM INCOME 2
(NPX)
------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS $ 7,585,398
Adjustments to reconcile the net increase (decrease) in
net assets applicable to Common shares from operations to net cash
provided by (used in) operating activities:
Purchases of investments (88,860,893)
Proceeds from short-term investments, net 3,700,000
Proceeds from sales of investments 27,055,443
Amortization / (Accretion) of premiums and discounts, net 316,696
(Increase) Decrease in receivable for interest (277,182)
(Increase) Decrease in receivable for investments sold 24,038,789
(Increase) Decrease in other assets (13,714)
Increase (Decrease) in payable for investments purchased (30,573,577)
Increase (Decrease) in accrued management fees (15,661)
Increase (Decrease) in accrued other liabilities (27,786)
Increase (Decrease) in Preferred shares dividends payable 21,390
Net realized (gain) loss from investments (481,438)
Change in net unrealized (appreciation) depreciation of investments 4,597,729
Change in net unrealized (appreciation) depreciation of forward swaps (205,469)
------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities (53,140,275)
------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in floating rate obligations 62,780,000
Cash distribution paid to Common shareholders (12,102,537)
------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities 50,677,463
------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH (2,462,812)
Cash at the beginning of period 3,219,135
------------------------------------------------------------------------------------------------------------
CASH AT THE END OF PERIOD $ 756,323
============================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
71
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds (the "Funds") covered in this report and their corresponding Common
share stock exchange symbols 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), Nuveen Insured Dividend Advantage Municipal Fund (NVG)
and Nuveen Insured Tax-Free Advantage Municipal Fund (NEA). Common shares of
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 Common shares of Insured Dividend Advantage (NVG) and Insured Tax-Free
Advantage (NEA) are traded on the American Stock Exchange. The Funds are
registered under the Investment Company Act of 1940, as amended, as closed-end,
diversified management investment companies.
Each Fund seeks to provide current income exempt from regular federal income
tax, and in the case of Insured Tax-Free Advantage (NEA) the alternative minimum
tax applicable to individuals, by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities or
certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
INVESTMENT VALUATION
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
market price quotes are not readily available (which is usually the case for
municipal securities), the pricing service may establish fair value based on
yields or prices of municipal bonds of comparable quality, type of issue,
coupon, maturity and rating, indications of value from securities dealers,
evaluations of anticipated cash flows or collateral and general market
conditions. Prices of forward swap contracts are also provided by an independent
pricing service approved by each Fund's Board of Directors/Trustees. If the
pricing service is unable to supply a price for a municipal bond or forward swap
contract, each Fund may use a market price or fair market value quote provided
by a major broker/dealer in such investments. If it is determined that the
market price or fair market value for an investment is unavailable or
inappropriate, the Board of Directors/Trustees of the Funds, or its designee,
may establish a fair value for the investment. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term investments are valued at amortized cost, which approximates market
value.
INVESTMENT TRANSACTIONS
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At April 30, 2007, Insured
Quality (NQI) and Insured Premium Income 2 (NPX) had outstanding
when-issued/delayed delivery purchase commitments of $3,689,582 and $3,116,228,
respectively. There were no such outstanding purchase commitments in any of the
other Funds at April 30, 2007.
INVESTMENT INCOME
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
FEDERAL INCOME TAXES
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal income tax, and in
the case of Insured Tax-Free Advantage (NEA) the alternative minimum tax
applicable to individuals, to retain such tax-exempt status when distributed to
shareholders of the Funds. Net realized capital gains and ordinary income
distributions paid by the Funds are subject to federal taxation.
72
DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
PREFERRED SHARES
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in more than one Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
The number of Preferred shares outstanding, by Series and in total, for each
Fund is as follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
--------------------------------------------------------------------------------------------------------
Number of shares:
Series M 2,600 4,000 -- 2,080 3,160 --
Series T 2,600 4,000 -- 2,200 3,080 2,880
Series W 2,600 4,000 840 2,080 -- 2,880
Series W2 -- 3,200 -- -- -- --
Series TH 2,320 4,000 2,800 2,200 3,080 --
Series TH2 -- 4,000 -- -- -- --
Series F 2,600 4,000 2,800 2,196 -- --
--------------------------------------------------------------------------------------------------------
Total 12,720 27,200 6,440 10,756 9,320 5,760
========================================================================================================
INSURANCE
Insured Quality (NQI), Insured Opportunity (NIO), Premier Insured Income (NIF)
and Insured Premium Income 2 (NPX) invest only in municipal securities which are
either covered by insurance or are backed by an escrow or trust account
containing sufficient U.S. Government or U.S. Government agency securities, both
of which ensure the timely payment of principal and interest.
Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA) invest at
least 80% of their net assets (including net assets attributable to Preferred
shares) in municipal securities that are covered by insurance. Each Fund may
also invest up to 20% of its net assets (including net assets attributable to
Preferred shares) in municipal securities which are either (i) backed by an
escrow or trust containing sufficient U.S. Government or U.S. Government agency
securities, or (ii) rated, at the time of investment, within the four highest
grades (Baa or BBB or better by Moody's, S&P or Fitch) or unrated but judged to
be of comparable quality by Nuveen Asset Management ("the Adviser"), a wholly
owned subsidiary of Nuveen Investments, Inc. ("Nuveen").
Each insured municipal security is covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance. Such insurance does not
guarantee the market value of the municipal securities or the value of the
Funds' Common shares. Original Issue Insurance and Secondary Market Insurance
remain in effect as long as the municipal securities covered thereby remain
outstanding and the insurer remains in business, regardless of whether the Funds
ultimately dispose of such municipal securities. Consequently, the market value
of the municipal securities covered by Original Issue Insurance or Secondary
Market Insurance may reflect value attributable to the insurance. Portfolio
Insurance, in contrast, is effective only while the municipal securities are
held by the Funds. Accordingly, neither the prices used in determining the
market value of the underlying municipal securities nor the Common share net
asset value of the Funds include value, if any, attributable to the Portfolio
Insurance. Each policy of the Portfolio Insurance does, however, give the Funds
the right to obtain permanent insurance with respect to the municipal security
covered by the Portfolio Insurance policy at the time of its sale.
INVERSE FLOATING RATE SECURITIES
Each Fund may invest in inverse floating rate securities. An inverse floating
rate security is created by depositing a municipal bond, typically with a fixed
interest rate, into a special purpose trust created by a broker-dealer. In turn,
this trust (a) issues floating rate certificates, in face amounts equal to some
fraction of the deposited bond's par amount or market value, that typically pay
short-term tax-exempt interest rates to third parties, and (b) issues to a
long-term investor (such as one of the Funds) an inverse floating rate
certificate (sometimes referred to as an "inverse floater") that represents all
remaining or residual interest in the trust. The income received by the inverse
floater holder varies inversely with the short-term rate paid to the floating
rate certificates' holders, and in most circumstances the inverse floater holder
bears substantially all of the underlying bond's downside investment risk and
also benefits disproportionately from any potential appreciation of the
underlying bond's value. The price of an inverse floating rate security will be
more volatile than that of the underlying bond because the interest rate is
dependent on not only the fixed coupon rate of the underlying bond but also on
the short-term interest paid on the floating rate certificates, and because the
inverse floating rate security essentially bears the risk of loss of the greater
face value of the underlying bond.
73
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). An investment in an externally-deposited
inverse floater is identified in the Portfolio of Investments as an "Inverse
floating rate investment". An investment in a self-deposited inverse floater is
accounted for as a financing transaction in accordance with Statement of
Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities". In such
instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as an "Underlying bond of an inverse
floating rate trust", with the Fund accounting for the short-term floating rate
certificates issued by the trust as "Floating rate obligations" on the Statement
of Assets and Liabilities. In addition, the Fund reflects in Investment Income
the entire earnings of the underlying bond and accounts for the related interest
paid to the holders of the short-term floating rate certificates as "Floating
rate obligations interest expense and fees" in the Statement of Operations.
During the six months ended April 30, 2007, each Fund invested in externally
deposited inverse floaters and/or self-deposited inverse floaters.
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended April 30, 2007, were as follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
---------------------------------------------------------------------------------------------------------------------------
Average floating rate obligations $ 47,056,602 $72,326,436 $15,740,856 $68,854,420 $25,298,011 $ 944,503
Average annual interest rate and fees 3.86% 3.86% 3.88% 3.86% 3.87% 3.85%
===========================================================================================================================
FORWARD SWAP TRANSACTIONS
The Funds are authorized to invest in certain derivative financial instruments.
Each Fund's use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To reduce such credit
risk, all counterparties are required to pledge collateral daily (based on the
daily valuation of each swap) on behalf of each Fund with a value approximately
equal to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
the Funds have instructed the custodian to pledge assets of the Funds as
collateral with a value approximately equal to the amount of the unrealized loss
above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the swap valuations fluctuate, either up or
down, by at least the predetermined threshold amount.
CUSTODIAN FEE CREDIT
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
74
INDEMNIFICATIONS
Under the Funds' organizational documents, their Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
USE OF ESTIMATES
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common shares were as follows:
INSURED INSURED PREMIER INSURED
QUALITY (NQI) OPPORTUNITY (NIO) INCOME (NIF)
-------------------------- ------------------------ -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/07 10/31/06 4/30/07 10/31/06 4/30/07 10/31/06
--------------------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions -- 27,000 -- -- -- --
================================================================================================================================
INSURED INSURED INSURED
PREMIUM INCOME 2 (NPX) DIVIDEND ADVANTAGE (NVG) TAX-FREE ADVANTAGE (NEA)
-------------------------- ------------------------ -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/07 10/31/06 4/30/07 10/31/06 4/30/07 10/31/06
--------------------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions -- -- 2,743 -- 2,095 --
================================================================================================================================
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended April 30, 2007, were as
follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
--------------------------------------------------------------------------------------------------------------------------------
Purchases $ 63,199,898 $ 91,578,780 $ 34,415,677 $ 88,860,893 $ 57,474,565 $ 2,719,896
Sales and maturities 35,082,591 61,134,706 16,350,210 27,055,443 38,855,289 2,458,854
================================================================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount, timing differences in recognizing
certain gains and losses on investment transactions and the treatment of
investments in inverse floating rate transactions subject to SFAS No. 140. To
the extent that differences arise that are permanent in nature, such amounts are
reclassified within the capital accounts on the Statement of Assets and
Liabilities presented in the annual report, based on their federal tax basis
treatment; temporary differences do not require reclassification. Temporary and
permanent differences do not impact the net asset values of the Funds.
At April 30, 2007, the cost of investments was as follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
--------------------------------------------------------------------------------------------------------------------------------
Cost of investments $829,014,413 $1,760,907,235 $421,493,427 $749,209,042 $644,486,924 $394,630,969
================================================================================================================================
75
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 2007, were as follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
--------------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 49,520,922 $ 116,976,407 $26,327,723 $33,451,224 $ 38,160,263 $ 21,617,773
Depreciation (760,982) (1,015,070) (202,156) (437,141) (2,346,838) (2,827,119)
--------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $ 48,759,940 $ 115,961,337 $26,125,567 $33,014,083 $ 35,813,425 $ 18,790,654
================================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at October 31, 2006, the Funds' last tax year
end, were as follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
--------------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $ 3,429,697 $ 8,633,157 $ 1,077,692 $ 2,170,823 $ 1,543,240 $ 822,436
Undistributed net ordinary income ** -- -- -- -- -- --
Undistributed net long-term capital gains -- 2,028,125 -- -- -- --
================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 2, 2006, paid on November 1, 2006.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' last tax year ended
October 31, 2006, was designated for purposes of the dividends paid deduction as
follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
--------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt
income $ 40,449,144 $ 85,552,575 $ 20,340,320 $ 34,358,230 $ 32,151,520 $ 18,082,303
Distributions from net ordinary income ** -- 36,367 -- -- -- --
Distributions from net long-term
capital gains 3,529,489 13,627,650 2,216,110 -- -- --
================================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
76
At October 31, 2006, the Funds' last tax year end, the following Funds had
unused capital loss carryforwards available for federal income tax purposes to
be applied against future capital gains, if any. If not applied, the
carryforwards will expire as follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIF) (NPX) (NVG) (NEA)
------------------------------------------------------------------------------------------------------------------
Expiration year:
2008 $ -- $ -- $ 985,195 $ -- $ --
2009 -- -- -- -- --
2010 -- -- -- -- --
2011 -- -- -- -- --
2012 -- -- -- -- --
2013 -- -- -- 1,715,199 4,675,683
2014 1,161,017 164,690 -- 1,187,192 --
------------------------------------------------------------------------------------------------------------------
Total $ 1,161,017 $ 164,690 $ 985,195 $ 2,902,391 $ 4,675,683
==================================================================================================================
5. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
INSURED QUALITY (NQI)
INSURED OPPORTUNITY (NIO)
PREMIER INSURED INCOME (NIF)
INSURED PREMIUM INCOME 2 (NPX)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
====================================================================================================================
INSURED DIVIDEND ADVANTAGE (NVG)
INSURED TAX-FREE ADVANTAGE (NEA)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
====================================================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of April 30, 2007, the complex-level fee rate was .1824%.
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion(2) .1400
====================================================================================================================
77
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
preferred stock issued by or borrowings by the Nuveen funds) of
Nuveen-sponsored funds in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to its Officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
funds.
For the first ten years of Insured Dividend Advantage's (NVG) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured Dividend Advantage (NVG) for any
portion of its fees and expenses beyond March 31, 2012.
For the first eight years of Insured Tax-Free Advantage's (NEA) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
--------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured Tax-Free Advantage (NEA) for any
portion of its fees and expenses beyond November 30, 2010.
As a result of certain trading errors that occurred during the fiscal year ended
October 31, 2006, Insured Quality (NQI) and Insured Opportunity (NIO) were
reimbursed $27,762 and $42,338, respectively, by the Adviser to offset losses
realized on the disposal of investments in violation of investment guidelines.
78
6. NEW ACCOUNTING PRONOUNCEMENTS
FINANCIAL ACCOUNTING STANDARDS BOARD INTERPRETATION NO. 48
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" (FIN 48).
FIN 48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Funds' tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006, and is to be
applied to all open tax years as of the effective date. Recent SEC guidance
allows funds to delay implementing FIN 48 into NAV calculations until the fund's
last NAV calculation in the first required financial statement reporting period.
As a result, the Funds must begin to incorporate FIN 48 into their NAV
calculations by October 31, 2007. At this time, management is continuing to
evaluate the implications of FIN 48 and does not expect the adoption of FIN 48
will have a significant impact on the net assets or results of operations of the
Funds.
FINANCIAL ACCOUNTING STANDARDS BOARD STATEMENT OF FINANCIAL ACCOUNTING STANDARDS
NO. 157
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007, and interim periods within those fiscal
years. The changes to current generally accepted accounting principles from the
application of this standard relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of April 30, 2007, the Funds do not believe the adoption of
SFAS No. 157 will impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements included within the Statement of
Operations for the period.
7. SUBSEQUENT EVENTS
DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 1, 2007, to shareholders of record on
May 15, 2007, as follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
--------------------------------------------------------------------------------------------------------------------------------
Dividend per share $.0605 $.0615 $.0610 $.0540 $.0640 $.0590
================================================================================================================================
AGREEMENT AND PLAN OF MERGER
On June 20, 2007, Nuveen Investments announced that it had entered into a
definitive Agreement and Plan of Merger ("Merger Agreement") with an investor
group majority-led by Madison Dearborn Partners, LLC. Madison Dearborn Partners,
LLC is a private equity investment firm based in Chicago, Illinois. The investor
group includes affiliates of Merrill Lynch, Wachovia, Citigroup, Deutsche Bank
and Morgan Stanley. It is anticipated that Merrill Lynch and its affiliates will
be indirect "affiliated persons" (as that term is defined in the Investment
Company Act of 1940) of the Funds. Under the terms of the merger, each
outstanding share of Nuveen Investments' common stock (other than dissenting
shares) will be converted into the right to receive a specified amount of cash,
without interest. The merger is expected to be completed by the end of the year,
subject to customary conditions, including obtaining the approval of Nuveen
Investments shareholders, obtaining necessary fund and client consents
sufficient to satisfy the terms of the Merger Agreement, and expiration of
certain regulatory waiting periods. The obligations of Madison Dearborn
Partners, LLC to consummate the merger are not conditioned on its obtaining
financing. The Merger Agreement includes a "go shop" provision through July 19,
2007 during which Nuveen Investments may actively solicit and negotiate
competing takeover proposals.
The consummation of the merger will be deemed to be an "assignment" (as defined
in the 1940 Act) of the investment management agreement between each Fund and
the Adviser, and will result in the automatic termination of each Fund's
agreement. Prior to the consummation of the merger, it is anticipated that the
Board of Trustees of each Fund will consider a new investment management
agreement with the Adviser. If approved by the Board, the new agreement would be
presented to the Fund's shareholders for approval, and, if so approved by
shareholders, would take effect upon consummation of the merger. There can be no
assurance that the merger described above will be consummated as contemplated or
that necessary shareholder approvals will be obtained.
79
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations
-----------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
---------------------------------------------------------------------------------------------------------
INSURED QUALITY (NQI)
---------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $15.40 $ .49 $ (.16) $ (.14) $ -- $ .19
2006 15.31 .99 .24 (.25) (.01) .97
2005 15.85 1.03 (.39) (.16) -- .48
2004 15.72 1.08 .20 (.08) -- 1.20
2003 15.87 1.10 (.05) (.07) (.01) .97
2002 15.78 1.12 .03 (.11) (.01) 1.03
INSURED OPPORTUNITY (NIO)
---------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 15.57 .49 (.14) (.14) (.01) .20
2006 15.46 .98 .34 (.24) (.03) 1.05
2005 16.06 1.01 (.50) (.16) -- .35
2004 15.89 1.05 .20 (.08) -- 1.17
2003 15.83 1.06 .17 (.07) (.01) 1.15
2002 15.72 1.15 .03 (.11) (.01) 1.06
=========================================================================================================
Less Distributions Total Returns
------------------------------ ------------------
Based
Net Offering on
Investment Capital Costs and Ending Common
Income to Gains to Preferred Common Based Share
Common Common Share Share Ending on Net
Share- Share- Underwriting Net Asset Market Market Asset
holders holders Total Discounts Value Value Value** Value**
------------------------------------------------------------------------------------------------------------------------
INSURED QUALITY (NQI)
------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $ (.36) $ -- $ (.36) $ -- $15.23 $14.69 1.52% 1.26%
2006 (.80) (.08) (.88) -- 15.40 14.83 2.76 6.53****
2005 (.97) (.05) (1.02) -- 15.31 15.31 2.11 3.09
2004 (1.02) (.05) (1.07) -- 15.85 16.00 4.37 7.90
2003 (1.00) (.12) (1.12) -- 15.72 16.39 12.92 6.27
2002 (.92) (.02) (.94) -- 15.87 15.55 10.82 6.83
INSURED OPPORTUNITY (NIO)
------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) (.37) (.02) (.39) -- 15.38 14.90 3.69 1.28
2006 (.80) (.14) (.94) -- 15.57 14.75 8.26 7.05****
2005 (.92) (.03) (.95) -- 15.46 14.52 (3.72) 2.21
2004 (.97) (.03) (1.00) -- 16.06 16.05 9.47 7.64
2003 (.97) (.12) (1.09) -- 15.89 15.64 10.22 7.51
2002 (.93) (.02) (.95) -- 15.83 15.21 9.80 7.01
========================================================================================================================
Ratios/Supplemental Data
--------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Before Credit/Reimbursement
-----------------------------------------------
Ending
Net
Assets
Applicable
to Common Expenses Expenses Net
Shares Including Excluding Investment
(000) Interest++(a) Interest++(a) Income++
------------------------------------------------------------------------------------------
INSURED QUALITY (NQI)
------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $ 583,309 1.49%* 1.18%* 6.47%*
2006 589,928 1.20 1.20 6.49
2005 585,777 1.19 1.19 6.58
2004 605,028 1.19 1.19 6.88
2003 598,102 1.20 1.20 6.93
2002 601,495 1.23 1.23 7.22
INSURED OPPORTUNITY (NIO)
------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 1,247,630 1.37* 1.15* 6.34*
2006 1,263,172 1.17 1.17 6.38
2005 1,254,638 1.16 1.16 6.35
2004 1,302,985 1.16 1.16 6.59
2003 1,288,087 1.17 1.17 6.67
2002 1,283,353 1.20 1.20 7.42
==========================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement***
-----------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
-----------------------------------------------------------------------------------------
INSURED QUALITY (NQI)
-----------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 1.46%* 1.15%* 6.50%* 4%
2006 1.20 1.20 6.49 13
2005 1.19 1.19 6.58 21
2004 1.19 1.19 6.88 8
2003 1.20 1.20 6.94 14
2002 1.21 1.21 7.24 44
INSURED OPPORTUNITY (NIO)
-----------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 1.36* 1.13* 6.36* 3
2006 1.17 1.17 6.38 13
2005 1.16 1.16 6.35 25
2004 1.16 1.16 6.59 8
2003 1.16 1.16 6.68 21
2002 1.19 1.19 7.42 37
=========================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
---------------------------------------------------------------------------------------------
INSURED QUALITY (NQI)
---------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $318,000 $25,000 $70,858 $54,055 $17,674
2006 318,000 25,000 71,378 -- --
2005 318,000 25,000 71,052 -- --
2004 318,000 25,000 72,565 -- --
2003 318,000 25,000 72,021 -- --
2002 318,000 25,000 72,287 -- --
INSURED OPPORTUNITY (NIO)
---------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 680,000 25,000 70,869 89,495 22,539
2006 680,000 25,000 71,440 -- --
2005 680,000 25,000 71,126 -- --
2004 680,000 25,000 72,904 -- --
2003 680,000 25,000 72,356 -- --
2002 680,000 25,000 72,182 -- --
=============================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not
annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
**** During the fiscal year ended October 31, 2006, Insured Quality (NQI) and
Insured Opportunity (NIO) received payments from the Adviser of $27,762
and $42,338, respectively, to offset losses realized on the disposal of
investments purchased in violation of each Fund's investment restrictions.
This reimbursement did not have an impact on the Funds' Total Return on
Common Share Net Asset Value.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1-Inverse Floating Rate Securities.
(b) For the six months ended April 30, 2007.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Spread 80-81
Financial HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations
-----------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
---------------------------------------------------------------------------------------------------------
PREMIER INSURED INCOME (NIF)
---------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $15.40 $ .49 $ (.18) $ (.14) $ -- $ .17
2006 15.33 .98 .25 (.25) (.02) .96
2005 16.00 1.01 (.49) (.16) (.01) .35
2004 15.69 1.03 .36 (.08) -- 1.31
2003 15.59 1.05 .13 (.07) -- 1.11
2002 15.55 1.14 (.05) (.11) -- .98
INSURED PREMIUM INCOME 2 (NPX)
---------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 14.16 .43 (.11) (.12) -- .20
2006 13.93 .86 .28 (.23) -- .91
2005 14.45 .89 (.44) (.14) -- .31
2004 14.24 .93 .23 (.07) -- 1.09
2003 14.17 .96 .03 (.06) -- .93
2002 13.94 .99 .16 (.10) -- 1.05
=========================================================================================================
Less Distributions Total Returns
------------------------------ -----------------
Based
Net Offering on
Investment Capital Costs and Ending Common
Income to Gains to Preferred Common Based Share
Common Common Share Share Ending on Net
Share- Share- Underwriting Net Asset Market Market Asset
holders holders Total Discounts Value Value Value** Value**
--------------------------------------------------------------------------------------------------------------------
PREMIER INSURED INCOME (NIF)
--------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $ (.37) $ -- $ (.37) $ -- $15.20 $14.71 3.29% 1.09%
2006 (.79) (.10) (.89) -- 15.40 14.60 7.68 6.46
2005 (.93) (.09) (1.02) -- 15.33 14.40 (1.66) 2.16
2004 (.98) (.02) (1.00) -- 16.00 15.64 7.55 8.62
2003 (.98) (.03) (1.01) -- 15.69 15.51 7.84 7.28
2002 (.94) -- (.94) -- 15.59 15.33 6.84 6.57
INSURED PREMIUM INCOME 2 (NPX)
--------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) (.32) -- (.32) -- 14.04 13.14 3.34 1.45
2006 (.68) -- (.68) -- 14.16 13.03 7.11 6.75
2005 (.83) -- (.83) -- 13.93 12.83 (3.32) 2.14
2004 (.88) -- (.88) -- 14.45 14.11 6.42 7.89
2003 (.86) -- (.86) -- 14.24 14.12 8.84 6.70
2002 (.82) -- (.82) -- 14.17 13.77 6.32 7.83
====================================================================================================================
Ratios/Supplemental Data
--------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Before Credit/Reimbursement
-----------------------------------------------
Ending
Net
Assets
Applicable
to Common Expenses Expenses Net
Shares Including Excluding Investment
(000) Interest++(a) Interest++(a) Income++
------------------------------------------------------------------------------------------
PREMIER INSURED INCOME (NIF)+
------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $295,102 1.41%* 1.20%* 6.38%*
2006 299,001 1.22 1.22 6.44
2005 297,624 1.20 1.20 6.39
2004 310,666 1.21 1.21 6.53
2003 303,912 1.22 1.22 6.66
2002 301,121 1.25 1.25 7.40
INSURED PREMIUM INCOME 2 (NPX)
------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 524,467 1.66* 1.15* 6.15*
2006 528,984 1.16 1.16 6.14
2005 520,508 1.16 1.16 6.20
2004 539,697 1.16 1.16 6.52
2003 530,975 1.17 1.17 6.68
2002 527,800 1.20 1.20 7.13
==========================================================================================
Ratios/Supplemental Data
--------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement***
-----------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
------------------------------------------------------------------------------------------
PREMIER INSURED INCOME (NIF)
------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 1.39%* 1.18%* 6.40%* 3%
2006 1.21 1.21 6.44 8
2005 1.20 1.20 6.40 20
2004 1.20 1.20 6.53 13
2003 1.21 1.21 6.68 25
2002 1.23 1.23 7.42 43
INSURED PREMIUM INCOME 2 (NPX)
------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 1.64* 1.13* 6.17* 3
2006 1.16 1.16 6.15 15
2005 1.16 1.16 6.20 23
2004 1.16 1.16 6.53 14
2003 1.16 1.16 6.69 31
2002 1.19 1.19 7.14 26
==========================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
----------------------------------------------------------------------------------------------
PREMIER INSURED INCOME (NIF)
----------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $161,000 $25,000 $70,823 $19,520 $24,366
2006 161,000 25,000 71,429 -- --
2005 161,000 25,000 71,215 -- --
2004 161,000 25,000 73,240 -- --
2003 161,000 25,000 72,191 -- --
2002 161,000 25,000 71,758 -- --
INSURED PREMIUM INCOME 2 (NPX)
----------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 268,900 25,000 73,760 91,720 9,650
2006 268,900 25,000 74,180 -- --
2005 268,900 25,000 73,392 -- --
2004 268,900 25,000 75,176 -- --
2003 268,900 25,000 74,365 -- --
2002 268,900 25,000 74,070 -- --
==============================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not
annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1-Inverse Floating Rate Securities.
(b) For the six months ended April 30, 2007.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Spread 82-83
Financial HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations
-----------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
---------------------------------------------------------------------------------------------------------
INSURED DIVIDEND ADVANTAGE (NVG)
---------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(d) $15.50 $ .50 $ (.15) $ (.14) $ -- $ .21
2006 15.23 1.01 .33 (.25) -- 1.09
2005 15.78 1.00 (.38) (.15) (.01) .46
2004 15.41 1.02 .42 (.07) -- 1.37
2003 15.35 1.03 .15 (.07) (.01) 1.10
2002(b) 14.33 .55 1.10 (.05) -- 1.60
INSURED TAX-FREE ADVANTAGE (NEA)
---------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(d) 14.93 .49 (.06) (.13) -- .30
2006 14.56 .97 .38 (.24) -- 1.11
2005 14.75 .97 (.19) (.15) -- .63
2004 14.54 .99 .21 (.07) -- 1.13
2003(c) 14.33 .82 .42 (.05) -- 1.19
=========================================================================================================
Less Distributions Total Returns
------------------------------ -----------------
Based
Net Offering on
Investment Capital Costs and Ending Common
Income to Gains to Preferred Common Based Share
Common Common Share Share Ending on Net
Share- Share- Underwriting Net Asset Market Market Asset
holders holders Total Discounts Value Value Value** Value**
--------------------------------------------------------------------------------------------------------------------
INSURED DIVIDEND ADVANTAGE (NVG)
--------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(d) $ (.38) $ -- $ (.38) $ -- $15.33 $15.26 5.11% 1.39%
2006 (.82) -- (.82) -- 15.50 14.89 11.09 7.39
2005 (.89) (.12) (1.01) -- 15.23 14.17 2.00 2.93
2004 (.93) (.07) (1.00) -- 15.78 14.89 7.61 9.19
2003 (.93) (.11) (1.04) -- 15.41 14.81 6.10 7.37
2002(b) (.47) -- (.47) (.11) 15.35 14.96 2.84 10.44
INSURED TAX-FREE ADVANTAGE (NEA)
--------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(d) (.35) -- (.35) -- 14.88 14.55 3.85 2.05
2006 (.74) -- (.74) -- 14.93 14.35 12.82 7.82
2005 (.81) (.01) (.82) -- 14.56 13.41 (4.68) 4.33
2004 (.92) (.01) (.93) .01 14.75 14.91 7.41 8.07
2003(c) (.78) -- (.78) (.20) 14.54 14.79 3.87 6.98
====================================================================================================================
Ratios/Supplemental Data
--------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Before Credit/Reimbursement
-----------------------------------------------
Ending
Net
Assets
Applicable
to Common Expenses Expenses Net
Shares Including Excluding Investment
(000) Interest++(a) Interest++(a) Income++
------------------------------------------------------------------------------------------
INSURED DIVIDEND ADVANTAGE (NVG)
------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(d) $456,850 1.35%* 1.14%* 6.12%*
2006 462,037 1.15 1.15 6.15
2005 454,018 1.15 1.15 5.96
2004 470,389 1.15 1.15 6.09
2003 459,368 1.17 1.17 6.22
2002(b) 457,432 1.10* 1.10* 5.71*
INSURED TAX-FREE ADVANTAGE (NEA)
------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(d) 275,591 1.19* 1.17* 6.06*
2006 276,506 1.19 1.19 6.12
2005 269,614 1.19 1.19 6.06
2004 273,112 1.20 1.20 6.24
2003(c) 269,112 1.12* 1.12* 5.52*
==========================================================================================
Ratios/Supplemental Data
--------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement***
-----------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
-----------------------------------------------------------------------------------------
INSURED DIVIDEND ADVANTAGE (NVG)
-----------------------------------------------------------------------------------------
Year Ended 10/31:
2007(d) .89%* .68%* 6.59%* 5%
2006 .70 .70 6.60 15
2005 .70 .70 6.42 2
2004 .70 .70 6.54 11
2003 .72 .72 6.67 25
2002(b) .61* .61* 6.20* 22
INSURED TAX-FREE ADVANTAGE (NEA)
-----------------------------------------------------------------------------------------
Year Ended 10/31:
2007(d) .69* .68* 6.55* 1
2006 .69 .69 6.61 --
2005 .70 .70 6.55 1
2004 .71 .71 6.73 13
2003(c) .65* .65* 6.00* 72
=========================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
----------------------------------------------------------------------------------------------
INSURED DIVIDEND ADVANTAGE (NVG)
----------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(d) $ 233,000 $25,000 $74,018 $29,025 $ 24,767
2006 233,000 25,000 74,575 -- --
2005 233,000 25,000 73,714 -- --
2004 233,000 25,000 75,471 -- --
2003 233,000 25,000 74,288 -- --
2002(b) 233,000 25,000 74,081 -- --
INSURED TAX-FREE ADVANTAGE (NEA)
----------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(d) 144,000 25,000 72,846 1,305 322,526
2006 144,000 25,000 73,005 -- --
2005 144,000 25,000 71,808 -- --
2004 144,000 25,000 72,415 -- --
2003(c) 144,000 25,000 71,721 -- --
==============================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not
annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1-Inverse Floating Rate Securities.
(b) For the period March 25, 2002 (commencement of operations) through October
31, 2002.
(c) For the period November 21, 2002 (commencement of operations) through
October 31, 2003.
(d) For the six months ended April 30, 2007.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Spread 84-85
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price per share may exceed
the market price at the time of valuation, resulting in the acquisition of fewer
shares than if the dividend or distribution had been paid in shares issued by
the Fund. A pro rata portion of any applicable brokerage commissions on open
market purchases will be paid by Plan participants. These commissions usually
will be lower than those charged on individual transactions.
86
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
87
Glossary of
TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity of
the bonds in a Fund's portfolio, computed by weighting each bond's time to
maturity (the date the security comes due) by the market value of the security.
This figure does not account for the likelihood of prepayments or the exercise
of call provisions unless an escrow account has been established to redeem the
bond before maturity. The market value weighting for an investment in an inverse
floating rate security is the value of the portfolio's residual interest in the
inverse floating rate trust, and does not include the value of the floating rate
securities issued by the trust.
INVERSE FLOATERS: Inverse floating rate securities are created by depositing a
municipal bond, typically with a fixed interest rate, into a special purpose
trust created by a broker-dealer. This trust, in turn, (a) issues floating rate
certificates typically paying short-term tax-exempt interest rates to third
parties in amounts equal to some fraction of the deposited bond's par amount or
market value, and (b) issues an inverse floating rate certificate (sometimes
referred to as an "inverse floater") to an investor (such as a Fund) interested
in gaining investment exposure to a long-term municipal bond. The income
received by the holder of the inverse floater varies inversely with the
short-term rate paid to the floating rate certificates' holders, and in most
circumstances the holder of the inverse floater bears substantially all of the
underlying bond's downside investment risk. The holder of the inverse floater
typically also benefits disproportionately from any potential appreciation of
the underlying bond's value. Hence, an inverse floater essentially represents an
investment in the underlying bond on a leveraged basis.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over
which a bond's principal and interest will be paid, and consequently is a
measure of the sensitivity of a bond's or bond Fund's value to changes when
market interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates change.
Leverage-adjusted duration takes into account the leveraging process for a Fund
and therefore is longer than the duration of the Fund's portfolio of bonds.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
88
Notes
89
Notes
90
Other Useful
INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2006, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
For Funds listed on the New York Stock Exchange, each Fund's Chief Executive
Officer has submitted to the Exchange the annual CEO certification as required
by Section 303A.12(a) of the NYSE Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Carol E. Stone
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
EACH FUND INTENDS TO REPURCHASE SHARES OF ITS OWN COMMON STOCK IN THE FUTURE AT
SUCH TIMES AND IN SUCH AMOUNTS AS IS DEEMED ADVISABLE. NO SHARES WERE
REPURCHASED DURING THE PERIOD COVERED BY THIS REPORT. ANY FUTURE REPURCHASES
WILL BE REPORTED TO SHAREHOLDERS IN THE NEXT ANNUAL OR SEMIANNUAL REPORT.
91
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing $166 billion in assets, as of March 31, 2007, Nuveen Investments offers
access to a number of different asset classes and investing solutions through a
variety of products. Nuveen Investments markets its capabilities under six
distinct brands: NWQ, specializing in value-style equities; Nuveen, managing
fixed-income investments; Santa Barbara, committed to growth equities;
Tradewinds, specializing in global value equities; Rittenhouse, focused on
"blue-chip" growth equities; and Symphony, with expertise in alternative
investments as well as equity and income portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
BE SURE TO OBTAIN A PROSPECTUS, WHERE APPLICABLE. INVESTORS SHOULD CONSIDER THE
INVESTMENT OBJECTIVE AND POLICIES, RISK CONSIDERATIONS, CHARGES AND EXPENSES OF
THE FUND CAREFULLY BEFORE INVESTING. THE PROSPECTUS CONTAINS THIS AND OTHER
INFORMATION RELEVANT TO AN INVESTMENT IN THE FUND. FOR A PROSPECTUS, PLEASE
CONTACT YOUR SECURITIES REPRESENTATIVE OR NUVEEN INVESTMENTS, 333 W. WACKER DR.,
CHICAGO, IL 60606. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR
SEND MONEY.
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Learn more
about Nuveen Funds at
www.nuveen.com/cef
[LOGO]
NUVEEN
INVESTMENTS
ESA-D-0407D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Insured Municipal Opportunity Fund, Inc.
-----------------------------------------------------------
By (Signature and Title)* /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
Vice President and Secretary
Date: July 9, 2007
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: July 9, 2007
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: July 9, 2007
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.