Nuveen Exchange-Traded Funds
Providing tax-free income
to help you live your dreams.
NUVEEN INSURED QUALITY MUNICIPAL FUND, INC.
NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC.
NUVEEN PREMIER INSURED MUNICIPAL INCOME FUND, INC.
NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND 2
SEMIANNUAL REPORT/APRIL 30, 1995
Photo of man reading statement on porch.
CONTENTS
3 Dear shareholder
5 Answering your questions
8 Fund performance
10 Amendment to dividend reinvestment plan
11 Getting to know your fund
13 Portfolio of investments
52 Statement of net assets
54 Statement of operations
56 Statement of changes in net assets
59 Notes to financial statements
70 Financial highlights
<PAGE>
Dear shareholder
"Providing secure income remains our top priority"
Photo of Richard J. Franke, Chairman of the Board
The 12 months ended April 30, 1995, was a difficult period for the bond
markets. Since February 1994, the Federal Reserve Board has raised interest
rates seven times to fend off future inflation, and during this period the
prices of all bonds and bond funds declined. Since April 30, the bond markets
have seen marked improvement.
This period of unusually high volatility and uncertainty has brought home a
basic fact about fixed-income securities: interest rates are subject to
change, and sometimes the changes can have dramatic effects on net asset
values. At Nuveen, we believe that the best approach to tax-free investing in
such tumultuous times is to focus on quality and income dependability. By this
standard, in one of the most challenging periods the municipal market has seen
in years, your Fund continued to meet its objectives well, providing an
attractive level of tax free income while holding portfolio values well in
light of market conditions.
Looking at income, on April 30, current yields on share prices for the funds
covered in this report ranged from 6.72% to 6.97%. To equal these yields, an
investor in the 36% federal income tax bracket would need to earn at least
10.50% on taxable alternatives. This taxable yield is difficult to achieve on
investments of comparable quality.
As we have noted in past reports, the municipal market's supply and demand
fundamentals continue to be sound. To put these trends in perspective, in 1994
the supply of new municipal bonds declined by approximately 40% from 1993, a
trend expected to continue in 1995. At the same time, demand for tax-free
bonds, which has been subdued over the last 12 months as a result of the
market's extraordinary volatility, seems to be resuming its long-term upward
trend as investors recognize the exceptional yields tax-free bonds offer at
current price levels.
This combination of lower supply, which may be reduced further by the high
volume of bond calls expected in 1995, and the likelihood of rising demand
should help support municipal bond prices in the long term.
Through our value approach to investing--a disciplined approach to security
selection and portfolio construction supported by one of the largest and most
respected research teams in the municipal industry--we will continue to pursue
the objectives of your Fund: attractive tax-free income and the enhancement of
portfolio value relative to the municipal bond market.
In closing, I want to welcome new investors to the Nuveen Exchange-Traded
Funds and thank those who have been with us for some time. All of us at Nuveen
appreciate your confidence in our family of municipal bond funds, and we look
forward to helping you reach your tax-free investment objectives in the
future.
Sincerely,
Richard J. Franke
Chairman of the Board
June 15, 1995
<PAGE>
Answering your questions
We spoke recently with Tom Spalding, head of Nuveen's portfolio management
team, and asked him about developments in the municipal market and the outlook
for Nuveen's Tax-Free Exchange-Traded Funds.
How did my Fund hold its value compared with the market?
These have been difficult times for all fixed-income investors. The Bond Buyer
40 index--a measure of municipal market value--declined by 0.37% over the past
12 months and 30-year Treasury bonds declined by 0.90% during the year. The
net asset values of the funds covered in this report, however, showed modest
gains from levels of a year ago.
Viewed in that context, the Nuveen funds covered in this report held their
value well for the 12 months ended April 30, 1995.
The fact that your Fund is leveraged means that its net asset value per
share will be somewhat more sensitive to interest rate changes, both upward
and downward, than unleveraged funds. Keep in mind, however, that leverage
also has enabled these funds to generate a higher level of tax-free income
than unleveraged funds.
Since my Fund is leveraged, will rising short-term interest rates affect my
dividends?
With the long-term bonds in these funds' portfolios yielding around 7.0% and
the average 7-day rate on short-term preferred shares averaging 4.0% over the
past three months, leverage has provided an important income benefit to our
shareholders over the past year.
Although the funds' core dividends are set to provide relatively stable
income, steady increases in short-term interest rates will affect these
dividends over time.
In general, our leveraged funds' dividends continue to be highly attractive
compared with both unleveraged and taxable alternatives. All things
considered, prudent leverage can provide highly attractive returns in a
variety of market conditions to investors who understand its uses, benefits,
and characteristics, and are willing to accept somewhat higher short-term NAV
fluctuations in anticipation of greater long-range returns.
Will bond calls affect my income or the stability of the net asset value of my
shares?
In general, bond calls can mean some reduction in income for investors in both
individual bonds and bond funds, because bonds issued when interest rates were
higher are replaced with lower-yielding bonds in today's market. The effect of
bond calls--both on income and net asset values--depends to some extent on the
age of a fund and the types of bonds in its portfolio.
Bond calls may have an effect on asset values especially for older funds
that hold high coupon bonds that may be subject to calls. These bonds also
often are priced at premiums to their par values and to their call prices. As
we saw last year, this premium is a "cushion" that can soften the effect of
rising and falling interest rates. As these bonds approach their call dates,
the premiums gradually approach the bonds' call prices, potentially reducing
net asset values.
Newer funds, on the other hand, primarily hold bonds priced at discounts to
their par values. As a result, these funds will experience fewer calls. At the
same time, these bonds are more sensitive to interest rate changes, both up
and down, and they are unaffected by the declining premium values related to
called bonds.
Of course, we manage all of our portfolios with calls in mind. As part of
our basic management process, we continually evaluate opportunities to sell
bonds approaching their call dates and to reinvest the proceeds in bonds we
think have high potential to provide above-market returns.
<PAGE>
<TABLE>
NUVEEN INSURED QUALITY MUNICIPAL FUND, INC.
NQI
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends, plus a
supplemental dividend in August.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/94 $0.0845
6/94 $0.0845
7/94 $0.0845
8/94 $0.0845 $0.0100
9/94 $0.0845
10/94 $0.0845
11/94 $0.0845
12/94 $0.0845
1/95 $0.0845
2/95 $0.0845
3/95 $0.0845
4/95 $0.0845
<CAPTION>
FUND HIGHLIGHTS 4/30/95
<S> <C>
Yield 6.82%
Taxable-equivalent yield 10.66%
Annual total return on NAV 7.63%
Taxable-equivalent total return 11.55%
Share price $14.875
NAV $15.21
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC.
NIO
Shareholders enjoyed a dividend increase in August following more than 9
months of steady dividends. In addition, shareholders received two
supplemental dividends totaling 2.5 cents per common share during the past 12
months.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/94 $0.0800 $0.0125
6/94 $0.0800
7/94 $0.0800
8/94 $0.0820 $0.0125
9/94 $0.0820
10/94 $0.0820
11/94 $0.0820
12/94 $0.0820
1/95 $0.0820
2/95 $0.0820
3/95 $0.0820
4/95 $0.0820
<CAPTION>
FUND HIGHLIGHTS 4/30/95
<S> <C>
Yield 6.97%
Taxable-equivalent yield 10.89%
Annual total return on NAV 8.27%
Taxable-equivalent total return 12.21%
Share price $14.125
NAV $14.93
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN PREMIER INSURED MUNICIPAL INCOME FUND, INC.
NIF
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends. In addition, the
Fund paid two supplemental dividends totaling 1.6 cents per common share.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/94 $0.0780 $0.0060
6/94 $0.0780
7/94 $0.0780
8/94 $0.0780 $0.0100
9/94 $0.0780
10/94 $0.0780
11/94 $0.0780
12/94 $0.0780
1/95 $0.0780
2/95 $0.0780
3/95 $0.0780
4/95 $0.0780
<CAPTION>
FUND HIGHLIGHTS 4/30/95
<S> <C>
Yield 6.81%
Taxable-equivalent yield 10.64%
Annual total return on NAV 8.55%
Taxable-equivalent total return 12.30%
Share price $13.75
NAV $14.98
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND, INC.
NPE
Shareholders enjoyed a year of relatively stable dividends with a modest
decrease in February. In addition, the Fund paid two supplemental dividends
totaling 4 cents per common share.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/94 $0.0730 $0.0200
6/94 $0.0730
7/94 $0.0730
8/94 $0.0730 $0.0200
9/94 $0.0730
10/94 $0.0730
11/94 $0.0730
12/94 $0.0730
1/95 $0.0730
2/95 $0.0700
3/95 $0.0700
4/95 $0.0700
<CAPTION>
FUND HIGHLIGHTS 4/30/95
<S> <C>
Yield 6.72%
Taxable-equivalent yield 10.50%
Annual total return on NAV 9.02%
Taxable-equivalent total return 12.89%
Share price $12.50
NAV $13.82
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND 2
NPX
Shareholders of NPX enjoyed relatively stable dividends through the year,
despite marked changes in short-term rates, reflected in a modest reduction in
February. A supplemental dividend was paid in August.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/94 $0.0635
6/94 $0.0635
7/94 $0.0635
8/94 $0.0645 $0.0100
9/94 $0.0645
10/94 $0.0645
11/94 $0.0645
12/94 $0.0645
1/95 $0.0645
2/95 $0.0615
3/95 $0.0615
4/95 $0.0615
<CAPTION>
FUND HIGHLIGHTS 4/30/95
<S> <C>
Yield 6.95%
Taxable-equivalent yield 10.86%
Annual total return on NAV 7.68%
Taxable-equivalent total return 11.39%
Share price $10.625
NAV $12.15
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
Amendment to Dividend Reinvestment Plan
Effective October 1, 1995, your Fund's Dividend Reinvestment Plan will be
amended in order to enhance the ability of the Plan Agent to obtain the best
execution when making open-market purchases of Fund shares in connection with
the Plan. As of the effective date, the Plan Agent, United States Trust
Company of New York, may make Plan purchases in advance of the payment date of
the applicable Fund distribution, provided that settlement for such purchases
shall occur no earlier than the payment date for such distribution.
<PAGE>
Getting to know your fund
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, April 30, 1995) divided by its closing price per share on
that date.
Taxable equivalent yield
The return an investor subject to a given federal and state income tax rate
would need to obtain from a fully taxable investment to equal the fund's
stated annualized yield on share price. In this report, this tax rate is
assumed to be 36% for shareholders, based on incomes of $117,950-$256,500 for
investors filing singly, $143,600-$256,500 for those filing jointly.
Net Asset Value (NAV)
The market value of all securities and other assets held by an exchange-traded
fund, minus any liabilities. The NAV per share is the fund's net assets, less
the value of its preferred shares, divided by its total number of common
shares outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if
any.
Taxable equivalent total return
The total return an investor subject to a given state and federal income tax
rate would need to obtain from a fully taxable investment to equal the Fund's
stated total return on NAV.
Leverage
A fund structure that enhances the income produced for common shareholders by
a long-term municipal bond fund through the issuance of short-term preferred
shares. Preferred shareholders receive short-term tax-free income, while the
proceeds can be used to purchase additional long-term bonds, thus increasing
the portfolio's income for common shareholders.
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as are deemed advisable. No
shares were repurchased during the 6-months ended April 30, 1995. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
NUVEEN INSURED QUALITY MUNICIPAL FUND, INC. (NQI)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 1.1%
$ 8,500,000 Birmingham Special Care Facilities Financing
Authority (Medical Center East), 7.250%, 7/01/15 7/96 at 102 Aaa $ 8,844,335
ALASKA - 1.9%
1,480,000 Alaska Housing Finance Corporation (GNMA and
FNMA), 8.500%, 12/01/11 12/95 at 103 Aaa 1,552,209
8,595,000 Alaska Housing Finance Corporation, Insured
Mortgage Program, 7.800%, 12/01/30 12/00 at 102 Aa 8,962,952
5,000,000 Anchorage Electric System, Senior Lien, 7.125%, 6/01/06 6/99 at 102 Aaa 5,392,900
ARIZONA - 7.3%
5,200,000 Maricopa County Industrial Development Authority
(Catholic Healthcare West), 7.150%, 7/01/12
(Pre-refunded to 7/03/99) 7/99 at 102 Aaa 5,734,352
5,000,000 Phoenix Civic Improvement Corporation, Wastewater
System, 6.125%, 7/01/23 (Pre-refunded to 7/01/03) 7/03 at 102 AAA 5,394,450
10,000,000 Pima County Industrial Development Authority
(Carondelet Health Services), 6.750%, 7/01/16 7/01 at 102 Aaa 10,471,300
4,760,000 Pima County Industrial Development Authority, Single
Family Mortgage, Alternative Minimum Tax,
8.200%, 9/01/21 3/99 at 103 Aaa 5,088,392
6,250,000 Scottsdale Industrial Development Authority
(Scottsdale Memorial Hospital), 7.050%, 9/01/18 9/98 at 101 Aaa 6,579,875
10,000,000 Tucson Local Development, Business Finance
Corporation, 6.250%, 7/01/08 7/02 at 102 Aaa 10,416,700
15,250,000 Tucson Water System, 7.100%, 7/01/18
(Pre-refunded to 7/01/01) 7/01 at 102 Aaa 17,139,323
ARKANSAS - 2.4%
10,250,000 Arkansas Development Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
6.700%, 7/01/27 7/05 at 102 AAA 10,393,500
Pope County Solid Waste Disposal (Arkansas Power
and Light Company), Alternative Minimum Tax:
6,400,000 8.000%, 1/01/21 1/01 at 102 Baa2 6,840,128
2,250,000 8.000%, 1/01/21 1/01 at 102 Aaa 2,511,765
CALIFORNIA - 4.9%
4,775,000 California Housing Finance Agency, 5.600%, 8/01/24 8/99 at 102 Aaa 4,336,225
5,000,000 California Public Works Board, Department of
Corrections, 5.750%, 9/01/21 9/01 at 100 A- 4,600,150
5,500,000 California Statewide Communities Development
Authority (Salk Institute for Biological Study),
Certificates of Participation, 6.200%, 7/01/24 7/04 at 102 AAA 5,369,045
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA (CONTINUED)
$ 12,800,000 Los Angeles Community Redevelopment Agency
(Bunker Hill Project), 5.625%, 12/01/23 12/03 at 102 Aaa $ 11,755,264
10,000,000 Los Angeles County Metropolitan Transportation
Authority, Sales Tax, 5.625%, 7/01/18 7/03 at 102 Aaa 9,366,700
5,000,000 West and Central Basin Financing Authority,
6.125%, 8/01/22 8/02 at 102 Aaa 4,930,950
COLORADO - 2.5%
Colorado Health Facilities Authority (PSL
Healthcare System):
5,000,000 7.250%, 2/15/16 2/01 at 102 Aaa 5,431,550
4,500,000 6.250%, 2/15/21 2/01 at 102 Aaa 4,565,925
3,815,000 Adams County, Single Family Mortgage,
8.700%, 6/01/12 6/01 at 103 Aaa 4,223,129
90,000 Arapahoe County, Single Family Mortgage (GNMA),
Alternative Minimum Tax, 8.200%, 8/01/14 8/98 at 102 AAA 95,534
3,540,000 Castle Pines Metropolitan District, General
Obligation, 7.625%, 12/01/15 12/00 at 102 Aaa 3,935,418
330,000 El Paso County, Single Family Mortgage, Alternative
Minimum Tax, 7.850%, 9/01/09 9/00 at 102 AAA 348,939
2,215,000 Jefferson County, Single Family Mortgage,
8.875%, 10/01/13 4/01 at 103 Aaa 2,390,207
DISTRICT OF COLUMBIA - 2.1%
15,450,000 District of Columbia General Obligation,
7.500%, 6/01/10 (Pre-refunded to 6/01/00) 6/00 at 102 Aaa 17,428,991
FLORIDA - 2.8%
Florida Housing Finance Agency, Single Family
Mortgage, Alternative Minimum Tax:
1,705,000 6.550%, 7/01/17 7/04 at 102 AA 1,720,925
5,000,000 6.650%, 1/01/24 1/05 at 102 AAA 5,051,900
12,210,000 6.650%, 7/01/26 7/04 at 102 AA 12,323,431
3,650,000 Duval County Housing Finance Authority, Single
Family Mortgage (GNMA), 7.350%, 7/01/24 1/01 at 103 Aaa 3,877,614
GEORGIA - 1.6%
4,500,000 Georgia Residential Finance Authority, Single Family
Mortgage, Alternative Minimum Tax,
8.300%, 12/01/19 12/98 at 103 AA 4,855,095
1,500,000 Marietta Development Authority (Life College, Inc.),
7.250%, 12/01/19 12/99 at 102 AAA 1,623,435
6,200,000 Putnam County Pollution Control (Georgia Power
Company), 7.250%, 7/01/21 7/96 at 102 Aaa 6,464,554
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS - 7.2%
$ 4,900,000 Illinois Development Finance Authority, Pollution
Control (Illinois Power Company), 5.700%, 2/01/24 2/04 at 102 Aaa $ 4,493,006
4,000,000 Illinois Health Facilities Authority (Central DuPage
Health System, Wyndemere Retirement Community
Project), 5.750%, 11/01/22 11/02 at 102 Aaa 3,709,240
9,500,000 Illinois Health Facilities Authority (The University
of Chicago Hospitals), 6.125%, 8/15/21 8/04 at 102 Aaa 9,197,805
3,650,000 Illinois State Toll Highway Authority, 5.750%, 1/01/17 1/03 at 102 Aaa 3,422,204
5,000,000 Central Lake County Joint Action Water Agency,
7.000%, 5/01/20 (Pre-refunded to 5/01/01) 5/01 at 102 Aaa 5,587,750
10,000,000 Chicago General Obligation, 6.125%, 1/01/16 7/05 at 102 Aaa 9,809,500
6,000,000 Chicago O'Hare International Airport, 6.375%, 1/01/12 1/05 at 102 Aaa 6,115,620
Public Building Commission of Chicago (Chicago
Board of Education):
6,280,000 7.125%, 1/01/15 No Opt. Call Aaa 7,065,251
10,325,000 5.750%, 12/01/18 12/03 at 102 Aaa 9,715,825
565,000 Moline, Rock Island and Urbana (GNMA), Alternative
Minimum Tax, 8.050%, 8/01/23 8/00 at 102 Aaa 604,160
INDIANA - 5.5%
3,285,000 Indiana Housing Finance Authority, Residential
Mortgage, Alternative Minimum Tax,
8.375%, 1/01/20 1/99 at 102 1/2 Aa 3,533,379
9,500,000 Indiana Housing Finance Authority, Single Family
Mortgage, Alternative Minimum Tax,
7.800%, 1/01/22 7/00 at 102 Aaa 10,058,505
6,000,000 Jasper County Pollution Control (Northern Indiana
Public Service Company), 7.100%, 7/01/17 7/01 at 102 Aaa 6,396,900
9,500,000 Marion County Convention and Recreational Facilities
Authority, 7.000%, 6/01/21 (Pre-refunded to 6/01/01) 6/01 at 102 Aaa 10,584,710
4,230,000 Rockport Pollution Control (Indiana Michigan
Power Company), 7.600%, 3/01/16 3/01 at 102 Aaa 4,682,779
10,000,000 St. Joseph County Hospital Authority (Memorial
Hospital of South Bend), 7.000%, 8/15/20 8/01 at 102 Aaa 10,638,100
IOWA - 1.3%
5,305,000 Dubuque County (Sisters of Mercy Health
Corporation), 7.000%, 8/15/21 8/01 at 102 Aaa 5,608,075
5,070,000 Muscatine Electric System, 7.625%, 1/01/04 1/96 at 102 Aaa 5,273,814
KANSAS - 1.3%
10,000,000 Burlington Pollution Control (Kansas Gas and
Electric Company), 7.000%, 6/01/31 6/01 at 102 Aaa 10,759,600
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
LOUISIANA - 2.3%
$ 7,070,000 Louisiana Stadium and Exposition District, Hotel
Occupancy, 6.050%, 7/01/24 7/05 at 102 Aaa $ 6,880,524
3,280,000 Louisiana Housing Finance Agency (GNMA), Single
Family Mortgage, Alternative Minimum Tax,
8.300%, 11/01/20 11/98 at 102 Aaa 3,508,550
4,325,000 Denham Springs-Livingston Housing Mortgage
Authority, Single Family Mortgage (GNMA and
FNMA), Alternative Minimum Tax, 6.875%, 2/01/28 2/05 at 102 AAA 4,367,774
3,830,000 Lafayette Public Trust Financing Authority (GNMA
and FNMA), Single Family Mortgage, Alternative
Minimum Tax, 6.800%, 2/01/21 2/05 at 102 AAA 3,882,050
MAINE - 1.6%
12,745,000 Maine Housing Authority, Mortgage Purchase,
7.400%, 11/15/22 5/01 at 102 Aaa 13,478,857
MASSACHUSETTS - 0.9%
7,100,000 Massachusetts Housing Finance Agency, Single
Family Mortgage, 7.500%, 12/01/13 6/99 at 102 Aaa 7,526,710
MINNESOTA - 2.2%
15,560,000 Minneapolis/St. Paul Housing Finance Board, Single
Family Mortgage, Alternative Minimum Tax,
8.300%, 8/01/21 8/98 at 102 AAA 16,634,885
1,885,000 St. Louis Park, Single Family Residential Mortgage
(GNMA), 7.250%, 4/20/23 4/01 at 102 Aaa 1,970,692
MISSISSIPPI - 1.8%
8,100,000 Mississippi Housing Finance Corporation, Single
Family Mortgage (GNMA), Alternative Minimum
Tax, 8.250%, 10/15/18 10/99 at 102 Aaa 8,598,069
Harrison County Wastewater Management District:
2,545,000 8.500%, 2/01/13 No Opt. Call Aaa 3,246,962
2,715,000 7.750%, 2/01/14 No Opt. Call Aaa 3,269,457
NEVADA - 2.8%
3,270,000 Clarke County Industrial Development Authority
(Nevada Power Company Project), Alternative
Minimum Tax, 7.800%, 6/01/20 6/00 at 102 Aaa 3,567,080
1,930,000 Reno (St. Mary's Regional Medical Center),
7.500%, 7/01/02 No Opt. Call Aaa 2,104,028
4,500,000 Washoe County Gas and Water Facilities (Sierra Pacific
Power Company), 6.300%, 12/01/14 7/02 at 102 Aaa 4,535,460
13,185,000 Washoe County (Washoe Medical Center),
6.000%, 6/01/19 6/04 at 102 Aaa 12,744,489
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW HAMPSHIRE - 0.6%
$ 5,990,000 New Hampshire Higher Education and Health
Facilities Authority (The Hitchcock Clinic),
5.250%, 8/15/21 8/03 at 102 Aaa $ 5,255,806
NEW JERSEY - 0.5%
3,750,000 New Jersey Health Care Facilities Financing Authority
(Monmouth Medical Center), 6.250%, 7/01/24 7/04 at 102 Aaa 3,779,550
NEW MEXICO - 2.6%
3,850,000 New Mexico Mortgage Finance Authority, Multi-Family
Housing, 7.625%, 1/01/24 1/01 at 102 AAA 4,091,241
5,000,000 Albuquerque Airport, Alternative Minimum Tax,
6.600%, 7/01/16 7/00 at 105 Aaa 5,167,750
6,000,000 Farmington Pollution Control (Southern California
Edison Company), 7.200%, 4/01/21 4/01 at 102 Aa3 6,382,380
5,750,000 Santa Fe, 6.300%, 6/01/24 6/04 at 100 Aaa 5,832,915
NEW YORK - 13.3%
12,860,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home, Insured
Mortgage (Kingsbrook Jewish Medical Center),
7.600%, 2/15/29 2/99 at 102 AA 13,871,568
20,250,000 New York State Medical Care Facilities Finance
Agency (St. Luke's-Roosevelt Hospital Center),
7.450%, 2/15/29 (Pre-refunded to 2/15/00) 2/00 at 102 Aaa 22,715,640
12,000,000 New York State Medical Care Facilities Finance
Agency, New York Hospital, FHA-Insured
Mortgage, 6.900%, 8/15/34 2/05 at 102 Aaa 12,923,400
5,000,000 New York State Mortgage Agency, Homeowner
Mortgage, Alternative Minimum Tax,
7.950%, 10/01/21 2/01 at 102 Aa 5,246,500
3,000,000 New York State Urban Development Corporation,
Correctional Capital Facilities, 7.500%, 1/01/20
(Pre-refunded to 1/01/00) 1/00 at 102 Aaa 3,367,230
New York City General Obligation:
2,000,000 8.000%, 3/15/11 3/00 at 101 1/2 Aaa 2,211,680
5,000,000 6.000%, 12/01/18 12/97 at 101 1/2 Aaa 4,999,650
6,000,000 7.250%, 3/15/19 3/00 at 101 1/2 Aaa 6,461,880
17,700,000 New York City Housing Development Corporation,
Multi-Unit Mortgage, 7.250%, 6/01/19 6/01 at 102 Aaa 18,820,764
2,600,000 New York City Municipal Water Finance Authority,
Water and Sewer System, 6.200%, 6/15/21 6/02 at 101 1/2 Aaa 2,593,084
15,000,000 New York City Transit Authority, Transit Facilities
(Livingston Plaza Project), 7.500%, 1/01/20
(Pre-refunded to 1/01/00) 1/00 at 102 Aaa 16,842,900
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
OHIO - 0.4%
$ 3,250,000 Cleveland Waterworks System, 6.250%, 1/01/15 1/02 at 102 Aaa $ 3,301,773
OKLAHOMA - 1.7%
2,460,000 Oklahoma Housing Finance Agency, Single Family
Mortgage, 7.200%, 3/01/11 3/01 at 102 Aaa 2,607,526
9,900,000 Pottawatomie County Development Authority (North
Deer Creek Reservoir Project), 7.375%, 7/01/26
(Pre-refunded to 7/01/00) 7/00 at 102 Aaa 11,122,452
PENNSYLVANIA - 4.5%
8,685,000 Pennsylvania Higher Education Assistance Agency,
Student Loan, 6.800%, 12/01/00 No Opt. Call Aaa 9,166,062
7,000,000 Berks County Municipal Authority (Reading Hospital
and Medical Center), 6.100%, 10/01/23 10/04 at 102 Aaa 6,851,670
13,960,000 Philadelphia Water and Sewer System, 7.000%, 8/01/21
(Pre-refunded to 8/01/01) 8/01 at 102 Aaa 15,631,989
5,000,000 Sayre Health Care Facilities Authority (Guthrie
Healthcare System), 7.100%, 3/01/17 3/01 at 102 Aaa 5,394,400
RHODE ISLAND - 3.2%
12,500,000 Rhode Island Depositors Economic Protection
Corporation, Special Obligation, 7.500%, 8/01/14
(Pre-refunded to 8/01/01) 8/01 at 102 Aaa 14,285,625
5,050,000 Rhode Island Port Authority and Economic
Development Corporation, Airport System,
Alternative Minimum Tax, 6.625%, 7/01/24 7/04 at 102 Aaa 5,139,082
1,380,000 Rhode Island Public Building Authority,
6.000%, 2/01/11 (Pre-refunded to 2/01/01) 2/01 at 100 Aaa 1,447,482
5,000,000 Providence Public Building Authority,
7.250%, 12/15/10 12/00 at 102 Aaa 5,443,700
SOUTH CAROLINA - 1.2%
3,700,000 South Carolina Public Service Authority,
7.750%, 7/01/15 1/96 at 102 Aaa 3,848,740
900,000 Berkeley County School District, Certificates of
Participation, 6.300%, 2/01/16 2/04 at 102 Aaa 910,395
250,000 Berkeley County Water and Sewer System,
6.000%, 6/01/10 6/01 at 100 Aaa 263,110
5,000,000 Lexington County Health Service District,
6.000%, 10/01/21 10/01 at 100 Aaa 4,883,200
TENNESSEE - 1.7%
8,435,000 Tennessee Housing Development Agency,
Homeownership Program, Alternative Minimum
Tax, 8.125%, 7/01/21 7/98 at 103 A1 9,002,676
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TENNESSEE (CONTINUED)
$ 5,170,000 Sullivan County, Health Educational and Housing
Facilities Board (Holston Valley Health Care Inc.),
5.750%, 2/15/13 2/03 at 102 Aaa $ 4,974,626
TEXAS - 7.9%
Texas Veterans' General Obligation:
9,100,000 8.300%, 12/01/16 (Pre-refunded to 12/01/99) 12/99 at 100 AAA 10,381,826
5,900,000 8.300%, 12/01/16 12/95 at 102 AA 6,142,549
8,000,000 Abilene Health Facilities Development Corporation
(Hendrick Medical Center), 6.150%, 9/01/25 9/05 at 102 Aaa 7,827,120
15,115,000 Austin Combined Utility System, 5.875%, 5/15/21 5/01 at 100 Aaa 14,673,340
4,695,000 Harris County Health Facilities Development
Corporation (Texas Medical Center), 7.375%, 5/15/20 5/00 at 102 Aaa 5,061,163
Harris County Hospital District:
3,000,000 7.500%, 2/15/03 No Opt. Call Aaa 3,384,030
5,000,000 7.400%, 2/15/10 No Opt. Call Aaa 5,743,550
4,100,000 Houston Airport System, Senior Lien, Alternative
Minimum Tax, 8.200%, 7/01/17 7/98 at 102 1/2 Aaa 4,534,681
7,325,000 Matagorda County Navigation District No. 1,
Pollution Control (Houston Lighting and Power
Company), Alternative Minimum Tax,
7.875%, 11/01/16 11/96 at 102 Aaa 7,732,488
UTAH - 0.8%
6,000,000 Salt Lake City (IHC Hospitals), 8.000%, 5/15/07 No Opt. Call AA 6,727,500
VIRGINIA - 0.3%
2,500,000 Chesapeake Hospital Authority (Chesapeake General
Hospital), 7.600%, 7/01/00 No Opt. Call Aaa 2,688,000
WASHINGTON - 1.3%
10,905,000 Washington Public Power Supply System, Nuclear
Project No. 3, 6.000%, 7/01/18 7/99 at 100 Aaa 10,494,971
WISCONSIN - 3.6%
6,855,000 Wisconsin Health and Educational Facilities Authority
(Waukesha Memorial Hospital), 7.250%, 8/15/19 8/00 at 102 Aaa 7,364,188
13,805,000 Wisconsin Health and Educational Facilities Authority
(Sisters of the Sorrowful Mother Ministry),
5.500%, 8/15/23 8/03 at 102 Aaa 12,287,140
10,000,000 Madison (Madison Gas and Electric Company),
Alternative Minimum Tax, 6.750%, 4/01/27 4/02 at 102 Aa2 10,214,000
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
WYOMING - 0.9%
Wyoming Community Development Authority,
Single Family Mortgage:
$ 3,930,000 6.650%, 6/01/13 6/04 at 102 AA $ 4,044,601
3,500,000 6.700%, 6/01/17 6/04 at 102 AA 3,610,250
$775,985,000 Total Investments - (cost $768,046,553) - 98.0% 811,338,815
============
Other Assets Less Liabilities - 2.0% 16,689,783
Net Assets - 100% $828,028,598
============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 104 $703,260,731 86%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 13 87,635,130 11
PORTFOLIO OF A+ A1 1 9,002,676 1
INVESTMENTS: A, A- A, A2, A3 1 4,600,150 1
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 1 6,840,128 1
TOTAL 120 $811,338,815 100%
<FN>
All of the bonds in the portfolio are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by
an escrow or trust containing sufficient U. S. Government or U. S. Government
agency securities to ensure the timely payment of principal and interest.
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC. (NIO)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 1.5%
$ 2,970,000 Alabama Housing Finance Authority, Single Family
Mortgage (GNMA), Alternative Minimum Tax,
7.900%, 10/01/22 10/00 at 102 AAA $ 3,164,208
11,000,000 Birmingham Special Care Facilities Financing
Authority (Baptist Health Systems, Inc.),
5.875%, 11/15/20 (WI) 11/05 at 102 Aaa 10,584,970
3,745,000 Demopolis General Obligation, 6.900%, 6/01/16
(Pre-refunded to 6/01/01) 6/01 at 102 Aaa 4,153,205
8,000,000 Houston County Health Care Authority (Southeast
Alabama Medical Center), 7.250%, 10/01/19
(Pre-refunded to 10/01/99) 10/99 at 102 Aaa 8,888,800
ALASKA - 1.1%
4,000,000 Alaska Energy Authority (Bradley Lake
Hydroelectric Project), 7.250%, 7/01/21 7/00 at 102 Aaa 4,318,880
470,000 Alaska Housing Finance Corporation (GNMA and
FNMA), 8.500%, 12/01/11 12/95 at 103 Aaa 492,931
Alaska Housing Finance Corporation, Insured
Mortgage Program:
4,250,000 7.750%, 12/01/14 12/00 at 102 Aa 4,483,368
7,535,000 7.800%, 12/01/30 12/00 at 102 Aa 7,857,573
2,000,000 Anchorage Electric System, 6.000%, 12/01/19 6/96 at 100 Aaa 1,922,920
ARIZONA - 0.9%
15,000,000 Pima County Industrial Development Authority
(Tucson Electric), 7.250%, 7/15/10 1/02 at 103 Aaa 16,447,050
ARKANSAS - 1.0%
16,320,000 Arkansas Development Finance Authority, Single
Family Mortgage (GNMA), Alternative Minimum
Tax, 7.400%, 9/01/23 9/01 at 102 AAA 17,209,277
CALIFORNIA - 7.1%
California Health Facilities Financing Authority
(Catholic Healthcare West):
9,000,000 6.500%, 7/01/16 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 9,806,310
14,000,000 6.650%, 7/01/21 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 15,372,280
2,055,000 California Housing Finance Agency, Home
Mortgage, Alternative Minimum Tax,
7.450%, 8/01/11 8/01 at 102 Aa 2,161,202
6,135,000 California Housing Finance Agency,
6.250%, 8/01/25 8/04 at 102 Aaa 6,109,417
3,100,000 Campbell Union School District, General Obligation,
6.250%, 8/01/19 8/04 at 102 Aaa 3,107,068
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA (CONTINUED)
$ 8,200,000 Castaic Lake Water Agency, Certificates of
Participation, 6.300%, 8/01/20 8/04 at 102 Aaa $ 8,258,138
5,000,000 East Bay Municipal Utility District,
5.000%, 6/01/21 6/03 at 102 Aaa 4,234,350
5,500,000 Fallbrook Union High School District, General
Obligation, 6.250%, 9/01/19 9/04 at 102 Aaa 5,499,395
6,530,000 LaQuinta Financing Authority (City Hall Project),
6.650%, 10/01/18 10/00 at 102 Aaa 6,793,616
15,300,000 Los Angeles Department of Water and Power,
Electric Plant, 5.375%, 9/01/23 9/03 at 102 Aaa 13,642,092
11,200,000 Los Angeles Wastewater System, 4.700%, 11/01/19 11/03 at 102 Aaa 9,060,912
10,660,000 Los Angeles County Metropolitan Transportation
Authority, Sales Tax, 5.625%, 7/01/18 7/03 at 102 Aaa 9,984,902
9,500,000 Sacramento Municipal Utility District,
5.250%, 11/15/20 11/03 at 102 Aaa 8,360,950
6,500,000 Salinas (GNMA) (Villa Sierra), 6.600%, 7/20/30 7/04 at 102 AAA 6,607,315
11,000,000 Santa Ana Financing Authority, 6.250%, 7/01/24 (DD) No Opt. Call Aaa 11,344,520
5,500,000 Santa Clara Financing Authority, 6.750%, 11/15/20 11/04 at 102 Aaa 5,835,170
COLORADO - 0.8%
14,150,000 Denver Board of Water Commissioners, Certificates
of Participation, 6.625%, 11/15/11 11/01 at 101 Aaa 14,906,742
CONNECTICUT - 0.2%
2,500,000 Connecticut Health and Educational Facilities
Authority (Choate Rosemary Hall),
7.000%, 7/01/25 7/04 at 101 Aaa 2,718,200
DISTRICT OF COLUMBIA - 2.6%
19,355,000 District of Columbia, General Obligation,
7.500%, 6/01/09 (Pre-refunded to 6/01/99) 6/99 at 102 Aaa 21,535,728
3,000,000 District of Columbia (National Rehabilitation
Hospital), 7.100%, 11/01/11 11/99 at 102 Aaa 3,196,650
6,000,000 District of Columbia (Children's Hospital),
6.250%, 7/15/19 7/02 at 102 Aaa 5,889,240
District of Columbia Housing Finance Agency, Single
Family Mortgage, Alternative Minimum Tax:
4,950,000 7.850%, 12/01/22 6/00 at 102 AAA 5,175,918
4,820,000 7.100%, 12/01/24 12/01 at 102 AAA 5,004,461
5,000,000 District of Columbia (American College of
Obstetricians and Gynecologists),
6.500%, 8/15/18 8/01 at 102 Aaa 5,050,350
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
FLORIDA - 3.0%
$ 16,280,000 Florida Housing Finance Agency, Home Ownership,
8.595%, 11/01/17 No Opt. Call AAA $ 17,501,000
6,045,000 Florida Housing Finance Agency, Single Family
Mortgage (GNMA), 7.100%, 1/01/17 3/97 at 103 AAA 6,253,553
10,000,000 Altamonte Springs Health Facilities Authority
(Adventist Health System/Sunbelt),
5.375%, 11/15/23 11/03 at 102 Aaa 9,087,400
7,000,000 Broward County Certificates of Participation,
5.500%, 6/01/13 6/04 at 102 Aaa 6,728,330
4,500,000 Dade County Housing Finance Authority, Single
Family Mortgage, 6.950%, 12/15/12 12/01 at 102 Aaa 4,719,420
10,000,000 Escambia County Housing Finance Authority,
Single Family Mortgage, Alternative Minimum
Tax, 6.950%, 10/01/27 4/05 at 102 Aaa 10,251,900
GEORGIA - 0.8%
4,300,000 Fulton County Building Authority, Judicial
Facilities, 8.200%, 1/01/15 (Pre-refunded
to 1/01/97) 1/97 at 102 Aaa 4,619,533
8,315,000 Fulton-DeKalb Hospital Authority,
6.900%, 1/01/15 (Pre-refunded to 1/01/01) 1/01 at 102 Aaa 9,216,429
HAWAII - 0.8%
14,500,000 Hawaii Housing Finance and Development
Corporation, 5.900%, 7/01/27 7/04 at 102 Aaa 13,721,930
IDAHO - 0.9%
Idaho Housing Agency, Single Family Mortgage:
4,295,000 6.650%, 7/01/14 No Opt. Call Aa 4,692,674
3,010,000 6.750%, 7/01/22 No Opt. Call Aa 3,284,693
Idaho Housing Agency, Single Family, Alternative
Minimum Tax:
2,900,000 6.900%, 7/01/26 No Opt. Call Aa 3,119,182
4,365,000 6.600%, 7/01/27 (WI) 1/05 at 102 Aaa 4,295,771
ILLINOIS - 11.5%
Illinois Civic Center:
5,000,000 7.000%, 12/15/10 12/00 at 102 Aaa 5,411,900
6,700,000 6.000%, 12/15/15 12/00 at 100 Aaa 6,499,134
6,000,000 Illinois Health Facilities Authority, Central DuPage
Health System (Wyndemere Retirement
Community Project), 5.750%, 11/01/22 11/02 at 102 Aaa 5,563,860
20,000,000 Illinois Health Facilities Authority
(Brokaw-Mennonite Association-Bromenn Health),
6.250%, 8/15/18 8/02 at 102 Aaa 19,636,800
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 3,500,000 Illinois Health Facilities Authority (Alexian Brothers
Medical Center), 7.125%, 1/01/21 1/01 at 102 Aaa $ 3,740,135
2,500,000 Illinois Health Facilities Authority (Memorial
Medical Center System), 7.100%, 10/01/21 10/01 at 102 Aaa 2,644,075
6,500,000 Illinois Health Facilities Authority (The Carle
Foundation), 6.000%, 1/01/15 1/00 at 102 Aaa 6,309,615
4,545,000 Illinois Housing Development Authority, Residential
Mortgage, Alternative Minimum Tax,
7.400%, 2/01/20 8/99 at 102 Aa 4,648,944
Illinois State Department of Central Management
Services (Illinois Student Assistance Commission):
2,965,000 6.875%, 7/01/07 7/02 at 102 Aaa 3,194,372
6,085,000 6.950%, 7/01/13 7/02 at 102 Aaa 6,467,625
2,900,000 Alton (Christian Health), 7.200%, 2/15/21
(Pre-refunded to 2/15/01) 2/01 at 102 Aaa 3,256,236
6,515,000 Berwyn (MacNeal Memorial Hospital),
7.000%, 6/01/15 6/01 at 102 Aaa 6,961,278
4,055,000 Central Lake County Joint Action Water Agency,
General Obligation, 6.000%, 2/01/19 2/03 at 102 AA 3,969,156
10,000,000 Chicago General Obligation (Central Public Library
Project), 6.850%, 1/01/17 (Pre-refunded
to 7/01/02) 7/02 at 101 1/2 Aaa 11,137,700
9,425,000 Chicago General Obligation, 5.500%, 1/01/24 1/04 at 102 Aaa 8,486,741
5,750,000 Chicago Motor Fuel Tax, 6.500%, 1/01/16
(Pre-refunded to 1/01/01) 1/01 at 100 Aaa 6,156,410
Cook County General Obligation:
18,430,000 6.750%, 11/01/18 (Pre-refunded to 11/01/01) 11/01 at 102 Aaa 20,415,833
26,475,000 6.250%, 11/01/21 11/01 at 102 Aaa 26,305,031
6,370,000 Decatur (Decatur Memorial Hospital),
7.750%, 10/01/21 10/01 at 102 Aaa 7,029,422
Eastern Illinois University, Auxiliary
Facilities System:
12,355,000 0.000%, 10/01/09 10/04 at 74 3/32 Aaa 4,835,500
16,470,000 0.000%, 4/01/16 10/04 at 47 3/32 Aaa 3,911,460
11,250,000 Metropolitan Fair and Exposition Authority,
6.000%, 6/01/14 6/96 at 100 Aaa 11,011,725
7,000,000 Northern Cook County, Solid Waste Agency,
6.250%, 5/01/15 5/02 at 101 Aaa 7,023,800
5,000,000 Northwest Water Commission of Cook and Lake
Counties, 6.500%, 5/01/12 (Pre-refunded
to 5/01/97) 5/97 at 102 Aaa 5,264,550
Regional Transportation Authority:
5,000,000 6.250%, 6/01/24 6/04 at 102 Aaa 4,933,650
10,950,000 6.750%, 6/01/25 6/04 at 102 Aaa 11,462,789
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
INDIANA - 4.3%
Indiana Health Facilities Financing Authority
(Community Hospitals):
$ 2,600,000 7.000%, 7/01/21 7/01 at 102 Aaa $ 2,762,318
7,450,000 6.850%, 7/01/22 7/02 at 102 Aaa 7,752,396
825,000 Indiana Housing Finance Authority, Alternative
Minimum Tax, 7.800%, 1/01/22 7/00 at 102 Aaa 868,717
2,215,000 Indiana Housing Finance Authority, Single Family
Mortgage, Alternative Minimum Tax,
7.800%, 1/01/22 7/00 at 102 Aaa 2,329,183
7,000,000 Fort Wayne Hospital Authority (Parkview Memorial
Hospital), 6.400%, 11/15/22 11/02 at 102 A1 6,857,760
12,250,000 Lawrenceburg Pollution Control (Indiana Michigan
Power Company), 7.000%, 4/01/15 4/02 at 102 Aaa 13,129,918
Marion County Convention and Recreational
Facilities Authority:
12,950,000 7.000%, 6/01/21 (Pre-refunded to 6/01/01) 6/01 at 102 Aaa 14,428,631
3,000,000 7.000%, 6/01/21 6/01 at 102 Aaa 3,203,700
9,545,000 New Prairie School Building Corporation,
7.200%, 7/15/21 7/04 at 102 Aaa 9,937,586
14,000,000 St. Joseph County Hospital Authority (Holy Cross
Health System), 7.000%, 12/01/12 12/01 at 102 Aaa 14,928,060
IOWA - 1.4%
5,000,000 Davenport (Mercy Hospital), 6.250%, 7/01/22 7/02 at 102 Aaa 5,009,800
11,400,000 Davenport (St. Luke's Hospital), 7.400%, 7/01/20 7/00 at 102 Aaa 12,378,918
7,000,000 Polk County, Insured Health Facilities (Mercy
Health Center of Central Iowa), 6.750%, 11/01/15 11/01 at 101 Aaa 7,292,530
KANSAS - 0.2%
3,155,000 Sedgwick County and Shawnee County (GNMA),
7.300%, 12/01/12 6/01 at 103 Aaa 3,352,629
KENTUCKY - 1.2%
10,000,000 Danville Multi-City Lease (Louisville and Jefferson
County Metropolitan Sewer), 6.800%, 3/01/19
(Pre-refunded to 3/01/02) 3/02 at 102 Aaa 11,143,000
53,000,000 Jefferson County Capital Projects Corporation,
0.000%, 8/15/19 (Pre-refunded to 2/15/01) 2/01 at 24 11/16 Aaa 9,683,630
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
LOUISIANA - 2.2%
$ 15,650,000 Louisiana Public Facilities Authority (Southern
Baptist Hospital), 6.800%, 5/15/12 5/02 at 102 Aaa $ 16,580,862
5,340,000 New Orleans Public Improvement, 7.000%, 9/01/19 9/02 at 100 Aaa 5,744,558
11,180,000 Orleans Parish School Board, 6.625%, 2/01/02 6/95 at 100 Aaa 11,079,715
3,000,000 St. Charles Parish Pollution Control (Louisiana
Power and Light Company), Alternative Minimum
Tax, 7.500%, 6/01/21 6/01 at 102 Aaa 3,265,200
3,500,000 Tangipahoa Parish Hospital, Service District No. 1,
6.250%, 2/01/24 2/04 at 102 Aaa 3,490,305
MAINE - 1.0%
Maine Health and Higher Educational Facilities
Authority:
10,500,000 6.375%, 7/01/21 7/01 at 102 Aaa 10,515,330
9,240,000 5.500%, 7/01/23 7/04 at 102 Aaa 8,181,743
MASSACHUSETTS - 5.3%
2,000,000 Massachusetts College Building Authority,
7.250%, 5/01/16 5/96 at 102 Aaa 2,089,220
5,000,000 Massachusetts General Obligation, 6.000%, 7/01/12 7/01 at 100 A 4,920,600
3,800,000 Massachusetts Health and Educational Facilities
Authority (Salem Hospital), 7.250%, 7/01/09 7/97 at 100 Aaa 3,981,716
6,000,000 Massachusetts Health and Educational Facilities
Authority (Brigham and Women's Hospital),
6.750%, 7/01/24 7/01 at 102 Aaa 6,251,340
5,050,000 Massachusetts Health and Educational Facilities
Authority (Fallon Health Care), 6.750%, 6/01/20 6/01 at 102 Aaa 5,263,312
10,500,000 Massachusetts Health and Educational Facilities
Authority (New England Medical Center),
6.625%, 7/01/25 7/02 at 102 Aaa 10,874,325
5,850,000 Massachusetts Health and Educational Facilities
Authority (South Shore Hospital), 6.500%, 7/01/22 7/02 at 102 Aaa 5,950,269
8,400,000 Massachusetts Health and Educational Facilities
Authority (Berkshire Health System),
6.000%, 10/01/13 10/05 at 102 Aaa 8,307,264
Massachusetts Housing Finance Agency, Single
Family, Alternative Minimum Tax:
9,700,000 7.750%, 12/01/20 6/99 at 102 Aa 10,192,566
14,365,000 7.150%, 12/01/24 6/01 at 102 Aa 14,871,079
21,785,000 Massachusetts Housing Finance Authority, Insured
Rental Housing, Alternative Minimum Tax,
6.650%, 7/01/19 7/04 at 102 Aaa 22,255,992
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MICHIGAN - 4.9%
$ 10,945,000 Michigan Housing Development Authority, Rental
Housing, Alternative Minimum Tax,
7.150%, 4/01/10 1/02 at 102 A+ $ 11,535,702
11,000,000 Michigan State Hospital Finance Authority (Sisters
of Mercy Health Corporation), 5.250%, 8/15/21 8/03 at 102 Aaa 9,600,470
15,000,000 Michigan Strategic Fund (The Detroit Edison
Company), 6.875%, 12/01/21 12/01 at 102 Aaa 15,900,900
12,250,000 Detroit Economic Development Corporation,
Resource Recovery, Alternative Minimum Tax,
6.875%, 5/01/09 5/01 at 102 Aaa 13,019,545
20,300,000 Detroit Sewage Disposal System, 6.625%, 7/01/21 7/01 at 102 Aaa 21,094,745
8,000,000 Gaylord Community Schools General Obligation,
0.000%, 5/01/21 (Pre-refunded to 5/01/07) 5/07 at 37 3/4 Aaa 1,528,720
4,500,000 Jackson County Hospital Finance Authority (W. A.
Foote Memorial Hospital), 5.250%, 6/01/23 6/03 at 102 Aaa 3,945,015
27,000,000 Okemos Public Schools, General Obligation,
Unlimited Tax, 0.000%, 5/01/21 (Pre-refunded
to 5/01/06) 5/06 at 34 17/32 Aaa 5,077,620
5,590,000 Western Township Utilities Authority, Sewage
Disposal System, 6.500%, 1/01/19 1/02 at 100 Aaa 5,701,241
MINNESOTA - 0.7%
Minnesota Housing Finance Agency, Single Family
Mortgage, Alternative Minimum Tax:
5,000,000 6.850%, 1/01/24 7/02 at 102 AA 5,132,750
7,500,000 6.700%, 7/01/26 1/04 at 102 AA+ 7,624,800
MISSISSIPPI - 0.4%
7,275,000 Mississippi Business Finance Corporation, Pollution
Control (Gulf Power Company), 5.700%, 11/01/23 11/98 at 102 Aaa 6,691,254
MISSOURI - 0.6%
6,075,000 Missouri Housing Development Commission, Single
Family Mortgage (GNMA), 6.900%, 7/01/18 1/02 at 102 AAA 6,319,094
4,695,000 Missouri Housing Development Commission, Single
Family Mortgage, Alternative Minimum Tax,
7.900%, 2/01/21 2/99 at 102 AAA 4,990,644
MONTANA - 1.5%
26,000,000 Forsyth Pollution Control (Puget Sound Power and
Light Company), 6.800%, 3/01/22 3/02 at 102 Aaa 27,100,580
NEBRASKA - 0.2%
3,830,000 Nebraska Investment Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
8.125%, 8/15/38 8/98 at 102 Aaa 4,039,616
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEVADA - 3.3%
$ 5,725,000 Nevada Housing Division, 6.700%, 10/01/17 4/04 at 102 Aa $ 5,817,631
4,415,000 Nevada Housing Division, Alternative Minimum
Tax, 6.950%, 10/01/26 4/04 at 102 Aa 4,516,368
29,775,000 Clarke County Industrial Development Authority
(Nevada Power Company Project), Alternative
Minimum Tax, 7.800%, 6/01/20 6/00 at 102 Aaa 32,480,059
11,000,000 Clark County, Passenger Facility (Las Vegas-McCarran
International Airport), 6.000%, 7/01/22 7/02 at 102 Aaa 10,572,100
5,250,000 Henderson (Catholic Healthcare West),
7.000%, 7/01/20 (Pre-refunded to 7/01/99) 7/99 at 102 Aaa 5,759,513
NEW HAMPSHIRE - 0.3%
4,950,000 New Hampshire Higher Educational and Health
Facilities Authority (Lakes Region Hospital
Association), 5.750%, 1/01/11 1/03 at 102 Aaa 4,869,266
NEW JERSEY - 0.5%
3,935,000 New Jersey Turnpike Authority, 10.375%, 1/01/03 No Opt. Call AAA 4,676,433
5,000,000 Mercer County Improvement Authority, Solid Waste,
Alternative Minimum Tax, 6.700%, 4/01/13 4/02 at 102 Aaa 5,144,900
NEW YORK - 3.7%
New York State Energy Research and Development
Authority (Consolidated Edison of New York),
Alternative Minimum Tax:
18,220,000 7.250%, 11/01/24 11/98 at 101 Aaa 19,375,148
7,000,000 7.500%, 7/01/25 7/99 at 101 Aaa 7,492,590
3,000,000 New York State Mortgage Agency, Homeowner
Mortgage, Alternative Minimum Tax,
7.800%, 10/01/20 10/99 at 102 Aa 3,156,990
8,265,000 New York City General Obligation, 6.250%, 8/01/10
(Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 8,936,449
1,500,000 New York City Municipal Water Finance Authority,
Water and Sewer System, 7.375%, 6/15/14
(Pre-refunded to 6/15/01) 6/01 at 101 1/2 Aaa 1,705,155
Dormitory Authority of the State of New York
(City University):
3,000,000 6.250%, 7/01/19 7/04 at 100 Aaa 3,025,680
6,400,000 6.750%, 7/01/24 7/04 at 102 Aaa 6,818,240
15,600,000 Port Authority of New York and New Jersey,
Alternative Minimum Tax, 6.650%, 1/15/23 1/05 at 101 Aaa 16,242,408
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NORTH CAROLINA - 2.8%
$ 45,000,000 Charlotte Convention Facility, Certificates of
Participation, 6.750%, 12/01/21 (Pre-refunded
to 12/01/01) 12/01 at 102 Aaa $ 50,049,900
OHIO - 3.1%
Ohio Air Quality Development Authority (JMG
Funding Limited Partnership Project), Alternative
Minimum Tax:
13,750,000 6.375%, 1/01/29 10/04 at 102 Aaa 13,977,700
8,000,000 6.375%, 4/01/29 10/04 at 102 Aaa 8,132,480
10,000,000 Ohio Housing Finance Agency, Residential Mortgage,
Alternative Minimum Tax, 6.625%, 3/01/26 3/05 at 102 AAA 10,084,500
12,550,000 Cleveland Waterworks, 6.500%, 1/01/21
(Pre-refunded to 1/01/02) 1/02 at 102 Aaa 13,719,158
9,000,000 Lucas County (St. Vincent Medical Center),
6.625%, 8/15/22 (Pre-refunded to 8/15/02) 8/02 at 102 Aaa 9,733,320
OKLAHOMA - 3.2%
1,230,000 Oklahoma Housing Finance Agency, Single Family
Mortgage, 7.150%, 3/01/07 3/01 at 102 Aaa 1,310,983
47,065,000 Oklahoma Housing Finance Agency, Single Family
Mortgage (GNMA), Alternative Minimum Tax,
7.977%, 8/01/18 No Opt. Call AAA 50,300,900
3,360,000 Norman Regional Hospital Authority,
6.900%, 9/01/21 9/01 at 102 Aaa 3,553,570
1,725,000 Tulsa County Home Finance Authority (GNMA),
Alternative Minimum Tax, 7.100%, 6/01/22 12/01 at 102 AAA 1,787,583
OREGON - 0.3%
5,500,000 Oregon State Housing and Community Services
Department, Single Family Mortgage, Alternative
Minimum Tax, 6.450%, 7/01/26 (WI) 7/05 at 102 Aa 5,426,630
PENNSYLVANIA - 5.2%
7,000,000 Commonwealth of Pennsylvania (Harristown
Development Corporation), Certificates of
Participation, 6.250%, 5/01/16 11/01 at 102 Aaa 7,068,810
14,700,000 Allegheny County (Greater Pittsburgh
International Airport), Alternative Minimum Tax,
6.625%, 1/01/22 1/02 at 102 Aaa 15,053,241
7,000,000 Beaver County Industrial Development Authority,
Pollution Control (Penn Power-Mansfield Project),
7.150%, 9/01/21 9/01 at 102 Aaa 7,522,550
24,800,000 Butler County Hospital Authority (North Hills
Passavant Hospital), 7.000%, 6/01/22 6/01 at 102 Aaa 26,551,624
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
Delaware County Industrial Development Authority
(Philadelphia Electric Project):
$ 5,000,000 7.375%, 4/01/21 4/01 at 102 Baa1 $ 5,179,700
5,000,000 7.375%, 4/01/21 4/01 at 102 Aaa 5,463,700
10,000,000 Harrisburg Authority, 6.625%, 6/01/13 6/01 at 101 Aaa 10,695,000
7,120,000 Lehigh County General Purpose Authority (Lehigh
Valley Hospital), 6.250%, 7/01/22 7/04 at 102 Aaa 7,159,018
8,950,000 Montgomery County Industrial Development
Authority, Pollution Control (Philadelphia Electric
Company), 6.625%, 6/01/22 6/02 at 102 Aaa 9,279,808
RHODE ISLAND - 3.7%
Rhode Island Depositors Economic Protection
Corporation, Special Obligation:
5,140,000 7.100%, 8/01/18 (Pre-refunded to 8/01/01) 8/01 at 102 Aaa 5,765,230
17,225,000 5.250%, 8/01/21 8/03 at 100 Aaa 15,014,688
38,650,000 Rhode Island Convention Center Authority,
6.700%, 5/15/20 (Pre-refunded to 5/15/01) 5/01 at 102 Aaa 42,593,073
2,195,000 Providence Housing Development Corporation,
FHA-Insured (Barbara Jordan Apartments),
6.750%, 7/01/25 7/04 at 102 Aaa 2,257,162
SOUTH CAROLINA - 0.9%
South Carolina Jobs-Economic Development
Authority (Oconee Memorial Hospital):
3,000,000 6.150%, 3/01/15 3/05 at 102 AAA 2,958,120
1,775,000 6.150%, 3/01/25 3/05 at 102 AAA 1,713,763
3,275,000 Lexington County Health Service District,
6.750%, 10/01/18 10/01 at 102 Aaa 3,419,984
22,000,000 Piedmont Municipal Power Agency, 0.000%, 1/01/13 No Opt. Call Aaa 7,464,160
SOUTH DAKOTA - 0.7%
4,280,000 South Dakota Health and Educational Facilities
Authority (Rapid City Regional Hospital),
7.000%, 9/01/14 9/99 at 102 Aaa 4,578,444
2,800,000 South Dakota Health and Educational Facilities
Authority (McKennan Hospital), 7.250%, 7/01/15 7/00 at 102 Aaa 3,021,900
5,900,000 Grant County Pollution Control (Northwestern
Public Service Company), 5.900%, 6/01/23 6/03 at 102 Aaa 5,575,736
TENNESSEE - 0.4%
7,500,000 Metropolitan Nashville Airport Authority, Airport
Improvement, 6.600%, 7/01/15 7/01 at 102 Aaa 7,816,050
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEXAS - 3.1%
$ 9,500,000 Coastal Bend Health Facilities Corporation
(Incarnate Word Health Services),
6.000%, 11/15/22 11/02 at 102 Aaa $ 9,105,180
2,300,000 East Texas Housing Finance Corporation, Single
Family Mortgage, Alternative Minimum Tax,
7.750%, 6/01/17 6/00 at 103 AAA 2,423,096
Harris County Toll Road Senior Lien:
9,000,000 0.000%, 8/15/18 (Pre-refunded to 8/15/09) 8/09 at 53 27/32 Aaa 2,154,330
39,000,000 0.000%, 8/15/19 (Pre-refunded to 8/15/09) 8/09 at 50 1/4 Aaa 8,726,640
7,280,000 0.000%, 8/15/20 (Pre-refunded to 8/15/09) 8/09 at 46 29/32 Aaa 1,520,719
5,085,000 0.000%, 8/15/21 (Pre-refunded to 8/15/09) 8/09 at 43 25/32 Aaa 991,575
15,000,000 Houston Water and Sewer System, Junior Lien,
6.375%, 12/01/17 12/01 at 102 Aaa 15,281,550
5,000,000 Palo Duro River Authority, General Obligation,
6.000%, 8/01/02 8/99 at 100 AAA 5,123,700
San Antonio Water System:
6,000,000 6.000%, 5/15/16 5/02 at 100 Aaa 5,911,680
5,000,000 5.500%, 5/15/18 5/02 at 100 Aaa 4,660,350
UTAH - 1.3%
6,970,000 Utah Housing Finance Agency, Multi-Family
Housing, 7.400%, 7/01/24 1/02 at 102 AA 7,328,188
5,600,000 Utah Housing Finance Agency, Alternative
Minimum Tax, 6.750%, 7/01/27 7/04 at 102 Aaa 5,407,248
4,565,000 Intermountain Power Agency, 6.000%, 7/01/21 7/97 at 100 Aaa 4,429,785
6,250,000 Intermountain Power Agency, Special Obligation,
7.000%, 7/01/15 7/97 at 102 Aaa 6,630,875
WASHINGTON - 3.9%
19,750,000 Washington Health Care Facilities Authority
(Group Health Cooperative of Puget Sound),
7.200%, 12/01/15 12/99 at 102 Aaa 21,161,138
5,000,000 Washington Public Power Supply System, Nuclear
Project No. 1, 6.250%, 7/01/17 7/02 at 102 Aaa 4,952,100
5,000,000 Washington Public Power Supply System, Nuclear
Project No. 3, 5.600%, 7/01/17 7/03 at 102 Aaa 4,595,500
Douglas County Public Utility District No. 1
(Wells Hydroelectric), Alternative Minimum Tax:
1,485,000 7.800%, 9/01/18 (Pre-refunded to 9/01/00) 9/00 at 102 Aaa 1,693,717
2,515,000 7.800%, 9/01/18 9/00 at 102 A+ 2,753,246
4,500,000 King County Public Hospital District No. 1
(Valley Medical Center), 7.250%, 9/01/15 9/00 at 102 Aaa 4,842,495
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 24,675,000 Municipality of Metropolitan Seattle, Limited Sales
Tax, General Obligation, 6.625%, 1/01/17 1/97 at 102 Aa $ 25,167,266
4,250,000 Snohomish County, Public Utility District No. 1,
6.650%, 1/01/16 No Opt. Call Aaa 4,638,110
WEST VIRGINIA - 1.5%
5,050,000 West Virginia University Dormitory System,
6.750%, 5/01/17 11/02 at 100 Aaa 5,231,952
4,100,000 West Virginia Water Development Authority,
7.000%, 11/01/25 11/01 at 102 Aaa 4,339,276
10,000,000 Harrison County Commission Solid Waste Disposal
(West Penn Power Company), Alternative
Minimum Tax, 6.300%, 5/01/23 5/03 at 102 A1 9,582,200
6,465,000 Mason County Pollution Control (Appalachian
Power Company), 6.850%, 6/01/22 6/02 at 102 Aaa 6,831,372
WISCONSIN - 5.0%
3,800,000 Wisconsin Health and Educational Facilities
Authority (Waukesha Memorial Hospital),
7.250%, 8/15/19 8/00 at 102 Aaa 4,082,263
Wisconsin Health and Educational Facilities
Authority (St. Luke's Medical Center):
17,000,000 7.400%, 8/15/19 (Pre-refunded to 8/15/99) 8/99 at 102 Aaa 18,920,830
8,150,000 7.100%, 8/15/19 8/01 at 102 Aaa 8,657,092
10,000,000 Wisconsin Health and Educational Facilities
Authority (Marshfield Clinic), 7.250%, 8/01/15 8/00 at 102 Aaa 10,734,600
11,400,000 Wisconsin Health and Educational Facilities
Authority (Wausau Hospitals), 6.700%, 8/15/20 2/01 at 102 Aaa 11,732,651
17,710,000 Wisconsin Health and Educational Facilities
Authority (Novus Health Group),
6.750%, 12/15/20 12/01 at 102 Aaa 18,185,158
4,900,000 Wisconsin Health and Educational Facilities
Authority (Sisters of the Sorrowful Mother
Ministry), 6.000%, 10/01/12 10/99 at 100 Aaa 4,811,505
Wisconsin Housing and Economic Development
Authority:
8,270,000 6.850%, 11/01/12 11/02 at 102 Aaa 8,653,727
3,500,000 6.450%, 3/01/17 3/04 at 102 AA 3,502,310
$1,866,300,000 Total Investments - (cost $1,693,786,288) - 99.0% 1,770,705,371
==============
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.8%
$ 8,800,000 Henrico County Industrial Development Health
Facility, Series 1994 (The Hermitage at Cedarfield),
Variable Rate Demand Bonds, 5.400%, 5/01/24t VMIG-1 $ 8,800,000
3,000,000 Maricopa County Pollution Control Corporation
(Arizona Public Service Company Palo Verde
Project), Variable Rate Demand Bonds,
5.000%, 5/01/29t A-1+ 3,000,000
1,600,000 Santa Ana Health Facilities Authority (Town and
Country), Variable Rate Demand Bonds,
4.850%, 10/01/20t A-1 1,600,000
$ 13,400,000 Total Temporary Investments - 0.8% 13,400,000
==============
Other Assets Less Liabilities - 0.2% 4,170,892
Net Assets - 100% $1,788,276,263
==============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 182 $1,602,922,793 90%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 19 126,953,370 6
PORTFOLIO OF A+ A1 4 30,728,908 2
INVESTMENTS A, A- A, A2, A3 1 4,920,600 1
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 1 5,179,700 1
TEMPORARY
INVESTMENTS):
TOTAL 207 $1,770,705,371 100%
<FN>
All of the bonds in the portfolio, 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 to ensure the timely payment of principal and interest.
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
(WI) Security was purchased on a when-issued basis (note 1).
(DD) A portion of security was purchased on a delayed delivery basis (note 1).
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
NUVEEN PREMIER INSURED MUNICIPAL INCOME FUND, INC. (NIF)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 1.3%
Montgomery Financing Authority, Special Care
Facilities (Baptist Medical Center):
$ 3,000,000 6.700%, 12/01/10 12/02 at 102 Aaa $ 3,228,270
2,250,000 5.750%, 1/01/22 1/02 at 100 Aaa 2,112,930
CALIFORNIA - 16.9%
Kern County Housing Authority (GNMA),
Alternative Minimum Tax:
1,090,000 7.150%, 12/30/24 No Opt. Call AAA 1,154,157
595,000 7.450%, 6/30/25 No Opt. Call AAA 637,007
6,045,000 LaVerne-Grand Terrace Housing Finance Agency,
Single Family Mortgage, 10.250%, 7/01/17 No Opt. Call Aaa 9,242,563
7,840,000 Lancaster Redevelopment Agency, Tax Allocation,
6.100%, 8/01/19 8/01 at 102 Aaa 7,741,373
5,040,000 Northern California Power Agency,
10.000%, 7/01/04 No Opt. Call Aaa 6,669,130
2,340,000 Pomona Public Financing Authority (Water
Treatment Project), 6.100%, 7/01/17 7/02 at 102 Aaa 2,286,952
8,880,000 Pomona Single Family Mortgage (GNMA and
FNMA), 7.500%, 8/01/23 No Opt. Call Aaa 10,778,899
10,305,000 San Bernardino Single Family Mortgage (GNMA),
7.500%, 5/01/23 No Opt. Call Aaa 12,167,835
14,755,000 San Bernardino County Single Family Mortgage,
Alternative Minimum Tax, 8.300%, 9/01/14 No Opt. Call Aaa 19,110,676
2,000,000 Santa Barbara Water System, Certificates of
Participation, 6.700%, 4/01/27 4/02 at 102 Aaa 2,100,160
COLORADO - 0.3%
1,225,000 Summit County School District RE-1, General
Obligation, 6.700%, 12/01/14 12/04 at 100 Aaa 1,312,600
FLORIDA - 3.4%
3,000,000 Orlando Utilities Commission, Water and Electric
System, 5.500%, 10/01/26 10/01 at 100 Aaa 2,772,960
7,000,000 Polk County Industrial Development Authority
(Winter Haven Hospital), 6.250%, 9/01/15 9/02 at 103 Aaa 7,094,990
4,200,000 Sarasota County School Board Financing Corporation,
7.250%, 7/01/10 (Pre-refunded to 7/01/00) 7/00 at 101 Aaa 4,666,410
GEORGIA - 4.4%
3,160,000 Georgia Municipal Electric Authority,
7.800%, 1/01/20 1/98 at 102 Aaa 3,434,825
Burke County Development Authority, Pollution
Control (Oglethorpe Power Corporation):
3,555,000 7.800%, 1/01/08 1/03 at 103 Aaa 4,123,907
10,000,000 8.000%, 1/01/15 1/03 at 103 Aaa 11,488,800
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS - 12.4%
$ 6,635,000 Illinois Health Facilities Authority (Memorial
Medical Center of Springfield), 6.500%, 10/01/16 10/00 at 102 Aaa $ 6,779,776
2,210,000 City of Carbondale (Southern Illinois Hospital),
6.875%, 3/01/15 3/97 at 102 Aaa 2,308,632
10,000,000 Chicago General Obligation (Central Public Library
Project), 6.850%, 1/01/17 (Pre-refunded
to 7/01/02) 7/02 at 101 1/2 Aaa 11,137,700
8,200,000 Chicago Board of Education, General Obligation,
Lease Certificates, 6.250%, 1/01/15 No Opt. Call Aaa 8,367,280
2,600,000 Cook County General Obligation,
6.250%, 11/01/21 11/01 at 102 Aaa 2,583,308
2,930,000 Metropolitan Fair and Exposition Authority,
6.000%, 6/01/14 6/96 at 100 Aaa 2,867,943
10,150,000 Onterie Center Housing Finance Corporation,
FHA-Insured, 7.050%, 7/01/27 7/02 at 102 Aaa 10,513,878
3,225,000 Regional Transportation Authority,
9.000%, 6/01/09 No Opt. Call Aaa 4,194,306
4,000,000 St. Clair County Public Building Commission,
Alternative Minimum Tax, 6.350%, 12/01/09 12/02 at 102 Aaa 4,189,800
INDIANA - 4.4%
2,500,000 Indiana Bond Bank, 9.000%, 8/01/09 (Pre-refunded
to 2/01/99) 2/99 at 101 1/2 Aaa 2,920,900
5,000,000 Indiana Health Facilities Financing Authority
(Community Hospitals Project), 6.400%, 5/01/12 5/02 at 102 Aaa 5,075,050
2,000,000 Fremont Middle School Building Corporation,
6.750%, 3/15/13 (Pre-refunded to 3/15/02) 3/02 at 101 Aaa 2,207,140
1,500,000 Northwest School Building Corporation,
5.625%, 10/15/10 4/03 at 101 Aaa 1,455,525
7,000,000 Southwest Allen Multi-School Building Corporation,
6.375%, 1/15/09 1/02 at 101 Aaa 7,194,110
KENTUCKY - 1.5%
6,500,000 Daviess County (Owensboro-Daviess County
Hospital), 6.250%, 8/01/22 8/02 at 102 Aaa 6,555,965
LOUISIANA - 3.1%
Louisiana Public Facilities Authority (Our Lady of
Lourdes Regional Medical Center):
5,000,000 6.375%, 2/01/12 2/02 at 102 Aaa 5,230,350
4,000,000 6.450%, 2/01/22 2/02 at 102 Aaa 4,051,440
3,750,000 Louisiana Public Facilities Authority (Southern
Baptist Hospital), 6.800%, 5/15/12 5/02 at 102 Aaa 3,973,050
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MARYLAND - 0.8%
$ 4,000,000 Maryland Health and Higher Educational Facilities
Authority (Francis Scott Key Medical Center),
5.000%, 7/01/23 7/03 at 102 Aaa $ 3,396,840
MASSACHUSETTS - 2.0%
5,360,000 Massachusetts Health and Educational Facilities
Authority (New England Medical Center),
6.625%, 7/01/25 7/02 at 102 Aaa 5,551,084
3,000,000 Framingham Housing Authority, GNMA, (Beaver
Terrace Apartments), 6.650%, 2/20/32 8/01 at 102 AAA 3,024,330
MINNESOTA - 0.4%
2,050,000 St. Louis Park (Healthsystem Minnesota Obligated
Group), 5.200%, 7/01/23 7/03 at 102 Aaa 1,807,977
MISSISSIPPI - 1.2%
4,795,000 Mississippi Home Corporation, 9.250%, 3/01/12 9/00 at 103 Aaa 5,190,923
MISSOURI - 2.5%
7,495,000 Jefferson County Industrial Development Authority
(Richardson Road Apartments Project),
11.000%, 12/15/15 (Pre-refunded to 8/15/07)
(Mandatory put 8/15/07) 8/07 at 100 AAA 10,565,477
MONTANA - 3.2%
13,000,000 Forsyth Pollution Control (Puget Sound Power
and Light Company), 6.800%, 3/01/22 3/02 at 102 Aaa 13,550,290
NEBRASKA - 0.6%
2,360,000 Nebraska Investment Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
8.125%, 8/15/38 8/98 at 102 Aaa 2,489,163
NEVADA - 2.5%
6,000,000 Humboldt County Pollution Control (Sierra Pacific
Power Company), 6.550%, 10/01/13 10/02 at 102 Aaa 6,239,280
4,500,000 Washoe County Gas and Water Facilities (Sierra
Pacific Power Company), 6.300%, 12/01/14 7/02 at 102 Aaa 4,535,460
NEW YORK - 5.8%
7,645,000 Metropolitan Transportation Authority, Transit
Facilities, 9.100%, 7/01/05 No Opt. Call Aaa 9,913,195
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
New York City General Obligation:
$ 1,425,000 7.875%, 8/01/00 No Opt. Call Aaa $ 1,612,915
6,665,000 6.625%, 8/01/14 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 7,356,627
335,000 6.625%, 8/01/14 8/02 at 101 1/2 Aaa 349,908
4,950,000 6.625%, 8/01/15 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 5,463,662
50,000 6.625%, 8/01/15 8/02 at 101 1/2 Aaa 52,117
NORTH CAROLINA - 0.9%
4,000,000 North Carolina Medical Care Commission (Alamance
Health Services, Inc.), 5.500%, 8/15/24 8/03 at 102 Aaa 3,673,800
OKLAHOMA - 3.5%
9,590,000 Oklahoma Housing Finance Agency (GNMA),
Single Family Mortgage, Alternative Minimum
Tax, 7.997%, 8/01/18 No Opt. Call AAA 10,261,300
4,285,000 Tulsa Airports Improvement Trust (Tulsa International
Airport), Alternative Minimum Tax,
7.700%, 6/01/09 6/97 at 102 1/2 Aaa 4,598,619
PENNSYLVANIA - 8.1%
13,480,000 Allegheny County (Greater Pittsburgh International
Airport), Alternative Minimum Tax,
8.250%, 1/01/16 1/98 at 102 Aaa 14,823,956
19,140,000 Montgomery County Industrial Development
Authority, Pollution Control (Philadelphia Electric
Company), 6.625%, 6/01/22 6/02 at 102 Aaa 19,845,309
RHODE ISLAND - 4.8%
12,750,000 Rhode Island Depositors Economic Protection
Corporation, Special Obligation, 6.625%, 8/01/19
(Pre-refunded to 8/01/02) 8/02 at 102 Aaa 14,100,990
4,000,000 Rhode Island General Obligation, 7.000%, 6/15/05 No Opt. Call Aaa 4,480,720
1,900,000 Rhode Island Convention Center Authority,
6.700%, 5/15/20 (Pre-refunded to 5/15/01) 5/01 at 102 Aaa 2,093,838
SOUTH CAROLINA - 2.4%
9,450,000 South Carolina Public Service Authority (Santee
Cooper), 6.500%, 7/01/24 (Pre-refunded
to 7/01/02) 7/02 at 102 Aaa 10,385,456
SOUTH DAKOTA - 0.5%
2,100,000 South Dakota Health and Educational Facilities
Authority (Vocational Education Program),
5.700%, 8/01/23 8/03 at 102 Aaa 1,947,435
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEXAS - 7.1%
$ 5,000,000 Brazos River Authority, Collateralized Pollution
Control (Texas Utilities Electric Company),
Alternative Minimum Tax, 6.050%, 4/01/25 4/03 at 102 Aaa $ 4,780,550
2,700,000 Corpus Christi Housing Finance Corporation, Single
Family Mortgage, 7.700%, 7/01/11 7/01 at 103 Aaa 2,916,837
2,205,000 El Paso Property Finance Authority, Single Family
Mortgage (GNMA), Alternative Minimum Tax,
8.700%, 12/01/18 6/02 at 103 Aaa 2,354,301
Harris County Toll Road, Senior Lien:
8,400,000 6.625%, 8/15/17 (Pre-refunded to 8/15/97) 8/97 at 102 Aaa 8,902,236
1,600,000 6.625%, 8/15/17 8/97 at 102 Aaa 1,651,840
5,210,000 6.500%, 8/15/17 (Pre-refunded to 8/15/02) 8/02 at 102 Aaa 5,731,520
940,000 6.500%, 8/15/17 8/02 at 102 Aaa 967,607
3,000,000 Rio Grande Health Facilities Development
Corporation (Valley Baptist Medical Center),
6.375%, 8/01/22 8/02 at 102 Aaa 3,015,210
UTAH - 0.4%
1,490,000 Utah Board of Regents (Weber State University),
6.250%, 4/01/10 4/02 at 100 Aaa 1,514,137
WASHINGTON - 2.3%
1,085,000 North Franklin School District No. J51-162, General
Obligation, 6.700%, 12/01/10 12/02 at 100 Aaa 1,138,100
Puyallup School District No. 3, General Obligation:
2,000,000 6.650%, 12/01/07 12/02 at 100 Aaa 2,116,880
4,750,000 6.700%, 12/01/09 12/02 at 100 Aaa 4,994,292
1,325,000 Richland Electric System, 6.700%, 11/01/11 11/02 at 100 Aaa 1,383,644
WEST VIRGINIA - 1.5%
6,000,000 Mason County Pollution Control (Appalachian
Power Company), 6.850%, 6/01/22 6/02 at 102 Aaa 6,340,020
$383,510,000 Total Investments - (cost $397,854,790) - 98.2% 418,848,442
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.2%
$ 1,000,000 North Carolina Medical Care Commission Hospital,
============
Pooled Financing (Duke University Hospital),
Variable Rate Demand Bonds, 5.000%, 10/01/20t VMIG-1 1,000,000
Other Assets Less Liabilities - 1.6% 6,634,646
Net Assets - 100% $426,483,088
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 77 $418,848,442 100%
RATINGS**
PORTFOLIO OF
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
TOTAL 77 $418,848,442 100%
<FN>
All of the bonds in the portfolio, 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 to ensure the timely payment of principal and interest.
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND, INC. (NPE)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 0.6%
$ 2,000,000 West Jefferson Industrial Development Board,
Pollution Control (Alabama Power Company),
6.050%, 5/01/23 5/98 at 102 Aaa $ 1,949,980
ALASKA - 1.6%
Anchorage General Obligation:
2,020,000 5.900%, 2/01/06 No Opt. Call Aaa 2,084,741
3,000,000 6.250%, 6/01/23 6/99 at 100 Aaa 3,004,050
CALIFORNIA - 8.0%
6,590,000 California Housing Finance Agency, Multi-Unit
Rental, Alternative Minimum Tax,
6.625%, 2/01/24 2/03 at 102 A1 6,584,860
3,000,000 M-S-R Public Power Agency, San Juan Project,
6.000%, 7/01/20 7/03 at 102 Aaa 2,923,710
7,000,000 Palmdale Community Redevelopment Agency,
8.000%, 4/01/16 No Opt. Call Aaa 8,762,810
San Leandro Housing Finance Corporation (Ashland
Village Apartments):
2,045,000 6.550%, 1/01/12 1/02 at 102 Aaa 2,096,370
5,100,000 6.650%, 1/01/25 1/02 at 102 Aaa 5,196,849
DISTRICT OF COLUMBIA - 4.4%
5,000,000 District of Columbia (Children's Hospital),
6.250%, 7/15/19 7/02 at 102 Aaa 4,907,700
3,910,000 District of Columbia Housing Finance Agency,
Single Family Mortgage, Alternative Minimum
Tax, 6.350%, 12/01/24 6/03 at 102 AAA 3,803,062
5,250,000 District of Columbia (The Catholic University of
America), 6.450%, 10/01/23 10/03 at 102 AAA 5,277,300
ILLINOIS - 18.9%
8,000,000 Illinois Development Finance Authority, Pollution
Control (Illinois Power Company), 8.300%, 4/01/17 4/98 at 102 Aaa 8,744,960
Illinois Health Facilities Authority (Lutheran General
Health System):
4,355,000 6.125%, 4/01/12 4/03 at 102 Aaa 4,298,341
5,000,000 6.250%, 4/01/18 4/03 at 102 Aaa 4,880,800
1,770,000 Illinois Health Facilities Authority (Elmhurst
Memorial Hospital), 6.625%, 1/01/22 1/02 at 102 Aaa 1,812,533
Illinois State Toll Highway Authority:
4,000,000 6.200%, 1/01/16 1/03 at 102 Aaa 3,935,520
4,250,000 5.750%, 1/01/17 1/03 at 102 Aaa 3,984,758
2,750,000 Chicago Midway Airport, Alternative Minimum
Tax, 6.250%, 1/01/14 1/04 at 102 Aaa 2,708,035
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 9,000,000 Chicago-O'Hare International Airport, International
Terminal, 6.750%, 1/01/18 1/02 at 102 Aaa $ 9,296,730
6,500,000 Metropolitan Pier and Exposition Authority
(McCormick Place Expansion Project),
6.500%, 6/15/22 6/03 at 102 Aaa 6,610,175
14,900,000 Regional Transportation Authority, 5.850%, 6/01/23 6/03 at 102 Aaa 14,077,073
INDIANA - 1.0%
2,220,000 Indiana Municipal Power Agency, Power Supply
System, 6.125%, 1/01/19 1/03 at 102 Aaa 2,161,636
1,000,000 Fort Wayne South Side School Building Corporation,
6.125%, 1/15/12 1/04 at 102 Aaa 1,002,610
LOUISIANA - 0.8%
2,500,000 Louisiana Public Facilities Authority (Louisiana
Department of Health and Hospitals Medical
Center), 6.250%, 10/15/10 10/02 at 100 AAA 2,518,400
MICHIGAN - 5.6%
8,300,000 Michigan Hospital Finance Authority (Henry Ford
Health System), 5.750%, 9/01/17 9/02 at 102 Aaa 7,812,541
10,000,000 Monroe County Pollution Control (Detroit Edison),
Alternative Minimum Tax, 6.550%, 9/01/24 9/03 at 103 Aaa 10,186,700
MONTANA - 0.9%
3,000,000 Forsyth Pollution Control (Puget Sound Power and
Light Company), 5.875%, 4/01/20 4/03 at 102 Aaa 2,891,610
NEVADA - 5.3%
2,905,000 Clark County General Obligation (Limited Tax),
10.000%, 6/01/01 No Opt. Call Aaa 3,643,800
5,000,000 Clark County (Nevada Power Company), Alternative
Minimum Tax, 6.700%, 6/01/22 6/02 at 102 Aaa 5,139,900
7,295,000 Clark County School District, General Obligation,
7.250%, 6/15/03 (WI) No Opt. Call Aaa 8,244,663
NEW HAMPSHIRE - 0.3%
1,000,000 New Hampshire Industrial Development Authority,
Pollution Control (Connecticut Light and Power
Company), Alternative Minimum Tax,
7.375%, 12/01/19 12/99 at 102 Aaa 1,070,890
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW JERSEY - 9.6%
$ 15,495,000 New Jersey Economic Development Authority
(Elizabethtown Gas Company), Alternative
Minimum Tax, 6.750%, 10/01/21 10/96 at 102 Aaa $ 15,926,071
4,000,000 New Jersey Economic Development Authority,
7.000%, 7/01/04 No Opt. Call Aaa 4,479,360
5,000,000 New Jersey Housing and Mortgage Finance Agency,
5.350%, 10/01/15 10/03 at 102 Aaa 4,620,000
New Jersey Turnpike Authority:
3,000,000 6.500%, 1/01/08 No Opt. Call Aaa 3,242,400
2,000,000 6.500%, 1/01/16 No Opt. Call Aaa 2,144,520
NEW YORK - 5.1%
Metropolitan Transportation Authority, Transit
Facilities:
5,000,000 6.300%, 7/01/06 No Opt. Call Aaa 5,338,750
4,985,000 8.000%, 7/01/07 No Opt. Call Aaa 6,089,776
4,000,000 New York City General Obligation, 8.000%, 8/01/05 No Opt. Call Aaa 4,810,440
NORTH CAROLINA - 0.9%
1,000,000 North Carolina Eastern Municipal Power Agency,
Power System, 5.500%, 1/01/17 1/03 at 100 Aaa 922,640
1,880,000 North Carolina Municipal Power Agency No. 1,
Catawba, 5.750%, 1/01/20 1/03 at 100 Aaa 1,794,122
OHIO - 2.7%
5,500,000 Ohio Air Quality Development Authority, Pollution
Control (Cleveland Electric Illuminating Company),
8.000%, 12/01/13 6/02 at 103 Aaa 6,371,420
2,250,000 Hamilton County Sewer System, 5.450%, 12/01/09 No Opt. Call Aaa 2,190,285
OKLAHOMA - 3.1%
2,000,000 Oklahoma Municipal Power Authority,
4.500%, 1/01/28 1/08 at 102 Aaa 1,558,180
8,425,000 McGee Creek Authority Water System,
6.000%, 1/01/23 No Opt. Call Aaa 8,379,673
PENNSYLVANIA - 10.6%
2,000,000 Pennsylvania Industrial Development Authority,
7.000%, 1/01/06 No Opt. Call Aaa 2,244,740
8,275,000 Bethlehem Authority Water System,
6.250%, 11/15/21 (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 8,831,990
10,140,000 Erie County Prison Authority, 6.250%, 11/01/11
(Pre-refunded to 11/01/01) 11/01 at 100 Aaa 10,790,380
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$ 1,000,000 Luzerne County Industrial Development Authority
(Pennsylvania Gas and Water Company Project),
Alternative Minimum Tax, 7.000%, 12/01/17 12/04 at 102 Aaa $ 1,079,120
7,000,000 Philadelphia School District, General Obligation,
5.300%, 7/01/04 No Opt. Call Aaa 6,914,460
4,000,000 University of Pittsburgh, 6.125%, 6/01/21 6/02 at 102 Aaa 3,981,640
SOUTH CAROLINA - 2.0%
6,500,000 Piedmont Municipal Power Agency, 6.300%, 1/01/22 1/03 at 102 Aaa 6,517,875
TEXAS - 4.9%
9,660,000 Texas Veterans Housing, General Obligation,
Alternative Minimum Tax, 6.800%, 12/01/23 12/03 at 102 Aaa 9,983,126
5,600,000 Houston Housing Finance Corporation, Single
Family Mortgage, 5.950%, 12/01/10 6/03 at 102 Aaa 5,588,352
WASHINGTON - 7.3%
4,000,000 Washington Health Care Facilities Authority
(Multicare Medical Center, Tacoma),
5.750%, 8/15/22 8/02 at 102 Aaa 3,695,040
6,130,000 Washington Health Care Facilities Authority
(Swedish Hospital Medical Center of Seattle),
6.300%, 11/15/22 11/02 at 102 Aaa 6,066,493
8,100,000 Washington Health Care Facilities Authority
(Virginia Mason), 6.300%, 2/15/17 2/03 at 102 Aaa 8,099,028
5,535,000 Washington Public Power Supply System, Nuclear
Project No. 3, 6.000%, 7/01/18 7/99 at 100 Aaa 5,326,884
WISCONSIN - 1.8%
4,000,000 Wisconsin Health and Educational Facilities
Authority (Wheaton Franciscan Services),
5.750%, 8/15/22 8/03 at 102 Aaa 3,661,280
2,100,000 Mukwonago Area School District, General
Obligation, 5.850%, 3/01/12 3/03 at 100 Aaa 2,077,656
$297,235,000 Total Investments - (cost $303,232,185) - 95.4% 304,338,808
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 4.9%
$ 15,600,000 Jackson County Port Facility (Chevron U.S.A. Inc.
============
Proj.), Series 1993, Variable Rate Demand Bond,
5.000%, 6/01/23t P-1 15,600,000
Other Assets Less Liabilities - (0.3)% (807,544)
Net Assets - 100% $319,131,264
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 59 $297,753,948 98%
RATINGS** A+ A1 1 6,584,860 2
PORTFOLIO OF
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
TOTAL 60 $304,338,808 100%
<FN>
All of the bonds in the portfolio, 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 to ensure the timely payment of principal and interest.
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
(WI) Security purchased on a when-issued basis (note 1).
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND 2 (NPX)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALASKA - 0.9%
$ 2,000,000 Alaska International Airports, Alternative Minimum
Tax, 5.500%, 10/01/15 10/03 at 102 Aaa $ 1,821,720
2,000,000 Anchorage General Obligation, 5.600%, 1/01/14 1/04 at 100 Aaa 1,878,640
ARKANSAS - 0.3%
1,500,000 Pulaski County, Special School District, Limited Tax,
5.250%, 2/01/19 2/99 at 100 Aaa 1,367,205
CALIFORNIA - 15.2%
10,355,000 California General Obligation, 11.000%, 8/01/03 No Opt. Call Aaa 14,192,563
15,325,000 California Pollution Control Finance Authority
(Pacific Gas and Electric Company),
5.850%, 12/01/23 12/03 at 102 A2 14,111,720
20,000,000 Los Angeles Community, Redevelopment Agency
(Bunker Hill Project), 5.625%, 12/01/18 12/03 at 102 Aaa 18,374,600
3,500,000 Northern California Power Agency Hydroelectric,
5.500%, 7/01/16 7/03 at 102 Aaa 3,259,690
5,000,000 Oakland Pension Financing, 7.600%, 8/01/21 8/98 at 102 Aaa 5,469,400
8,000,000 University of California, 5.000%, 9/01/14 9/03 at 102 Aaa 6,966,960
DISTRICT OF COLUMBIA - 3.3%
District of Columbia General Obligation:
5,000,000 6.500%, 6/01/09 No Opt. Call Aaa 5,162,950
5,000,000 5.500%, 6/01/12 No Opt. Call Aaa 4,594,450
4,030,000 District of Columbia Housing Finance Agency
(Southview Apartments), 6.000%, 1/01/25 7/03 at 102 Aaa 3,857,718
FLORIDA - 5.3%
5,250,000 Florida Department of General Services, Bond
Finance Division, 4.750%, 7/01/12 7/04 at 101 Aaa 4,582,673
5,500,000 Florida Municipal Power Agency, 6.500%, 10/01/20
(Pre-refunded to 10/01/02) 10/02 at 102 Aaa 6,064,355
9,000,000 Dade County, Water and Sewer System,
5.000%, 10/01/13 10/03 at 102 Aaa 8,078,310
3,000,000 Orlando and Orange County Expressway Authority,
5.500%, 7/01/18 7/03 at 102 Aaa 2,820,360
GEORGIA - 0.7%
3,000,000 Georgia Municipal Electric Authority, 6.000%, 1/01/22 1/04 at 102 Aaa 2,921,880
ILLINOIS - 16.0%
Illinois Health Facilities Authority
(Rush-Presbyterian-St. Luke's Medical Center):
6,000,000 5.250%, 11/15/20 11/03 at 102 Aaa 5,170,860
500,000 5.500%, 11/15/25 11/03 at 102 Aaa 443,575
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 4,000,000 Illinois Housing Development Authority,
6.000%, 7/01/18 1/04 at 102 A1 $ 3,882,760
7,390,000 Illinois Municipal Electric Agency, 5.750%, 2/01/21 2/01 at 102 Aaa 6,936,993
3,000,000 Illinois Sales Tax, 7.000%, 6/15/20 (Pre-refunded
to 6/15/01) 6/01 at 102 AAA 3,352,470
1,500,000 Chicago General Obligation, 6.125%, 1/01/16 7/05 at 102 Aaa 1,471,425
1,100,000 Chicago Midway Airport, Alternate Minimum Tax,
6.100%, 1/01/08 1/04 at 102 Aaa 1,107,601
5,660,000 Chicago O'Hare International Airport,
6.375%, 1/01/15 1/05 at 102 Aaa 5,750,164
4,000,000 Chicago Public Building Commission (Board of
Education), 5.750%, 12/01/18 12/03 at 102 Aaa 3,764,000
2,000,000 Chicago Wastewater Transmission, 5.125%, 1/01/20 1/03 at 100 Aaa 1,711,960
10,520,000 Cook County General Obligation, 5.500%, 11/15/22 11/02 at 102 Aaa 9,488,830
Franklin Park General Obligation:
5,825,000 5.500%, 7/01/13 7/04 at 102 Aaa 5,461,928
4,650,000 5.500%, 7/01/22 7/04 at 102 Aaa 4,201,926
Regional Transportation Authority:
5,200,000 6.125%, 6/01/22 6/02 at 100 Aaa 5,068,908
8,000,000 5.850%, 6/01/23 6/03 at 102 Aaa 7,558,160
INDIANA - 0.3%
1,600,000 Indianapolis Gas Utility System, 5.375%, 6/01/21 6/03 at 102 Aaa 1,428,384
KANSAS - 1.6%
3,460,000 Olathe/Labette County, Single Family Mortgage,
Alternative Minimum Tax, 8.100%, 8/01/23 2/05 at 105 Aaa 3,871,844
2,345,000 Sedgwick County and Shawnee County, Single
Family Mortgage, Alternative Minimum Tax,
8.050%, 5/01/24 11/04 at 105 Aaa 2,601,051
KENTUCKY - 3.4%
Louisville-Jefferson County Regional Airport
Authority, Alternative Minimum Tax:
1,570,000 5.500%, 7/01/13 7/03 at 102 Aaa 1,462,345
13,745,000 5.500%, 7/01/23 7/03 at 102 Aaa 12,452,695
LOUISIANA - 1.9%
4,105,000 Louisiana Housing Finance Agency, Multi-Family
Housing (GNMA), 6.200%, 6/20/28 12/02 at 103 Aaa 3,964,855
4,135,000 Jefferson Parish Hospital, Service District No. 1,
5.250%, 1/01/13 1/04 at 102 Aaa 3,757,640
MAINE - 0.5%
1,745,000 Maine Turnpike Authority, 7.500%, 7/01/09 No Opt. Call Aaa 2,049,276
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MARYLAND - 2.5%
$ 10,000,000 Maryland Transportation Authority
(Baltimore/Washington International Airport),
Alternative Minimum Tax, 6.400%, 7/01/19 7/04 at 102 Aaa $ 10,313,000
MICHIGAN - 2.0%
4,800,000 Livonia Public School District, General Obligation,
5.500%, 5/01/21 5/03 at 102 Aaa 4,412,160
3,250,000 Wayne County (Detroit Metropolitan Airport),
5.250%, 12/01/21 12/03 at 102 Aaa 2,857,660
1,000,000 Wayne County (Detroit Metropolitan Airport),
Alternative Minimum Tax, 5.500%, 12/01/21 12/03 at 102 Aaa 905,680
MISSOURI - 0.7%
2,600,000 Missouri Third State Building, General Obligation,
7.050%, 8/01/05 (Pre-refunded to 8/01/96) 8/96 at 102 Aaa 2,726,178
NEVADA - 5.8%
8,320,000 Clark County, School District, General Obligation,
7.250%, 6/15/04 (WI) No Opt. Call Aaa 9,449,357
Reno (St. Mary's Regional Medical Center):
3,100,000 5.625%, 5/15/18 5/03 at 102 Aaa 2,847,257
10,000,000 5.625%, 5/15/23 5/03 at 102 Aaa 9,116,300
2,490,000 University of Nevada, Community College System,
5.600%, 7/01/13 7/03 at 101 Aaa 2,356,735
NEW YORK - 4.0%
New York State Medical Care Facilities Finance
Agency, FHA-Insured (New York Hospital):
3,000,000 6.750%, 8/15/14 2/05 at 102 Aaa 3,195,780
2,500,000 6.800%, 8/15/24 2/05 at 102 Aaa 2,662,700
3,000,000 New York State Medical Care Facilities Finance
Agency (Mental Health Facilities), 6.000%, 8/15/15 2/05 at 102 Aaa 2,985,720
4,090,000 Metropolitan Transportation Authority, Commuter
Facilities, 8.000%, 7/01/07 No Opt. Call Aaa 4,975,976
2,500,000 New York City General Obligation, 5.750%, 8/01/10 8/02 at 101 1/2 Aaa 2,464,800
OHIO - 4.9%
8,325,000 Ohio Housing Finance Agency, Single Family
(GNMA), Alternative Minimum Tax,
7.650%, 3/01/29 9/99 at 102 AAA 8,683,475
2,000,000 Cleveland Waterworks System, 6.250%, 1/01/15 1/02 at 102 Aaa 2,031,860
3,000,000 Fairfield City School District, General Obligation,
6.000%, 12/01/20 12/05 at 100 Aaa 2,961,180
6,450,000 Hamilton Electric System, 6.000%, 10/15/23 10/02 at 102 Aaa 6,303,585
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
OKLAHOMA - 1.5%
$ 6,000,000 Norman Regional Hospital Authority,
6.900%, 9/01/21 9/01 at 102 Aaa $ 6,345,660
PENNSYLVANIA - 4.4%
2,000,000 Pennsylvania Intergovernmental Cooperative
Authority (Philadelphia Funding Program),
5.625%, 6/15/23 6/03 at 100 Aaa 1,877,920
Philadelphia Water and Wastewater System:
3,700,000 5.500%, 6/15/14 6/03 at 102 Aaa 3,486,843
4,000,000 5.500%, 6/15/15 6/03 at 102 Aaa 3,741,160
10,000,000 5.000%, 6/15/16 6/03 at 100 Aaa 8,724,000
RHODE ISLAND - 1.1%
5,000,000 Rhode Island Health and Educational Building
Corporation, 5.250%, 9/15/23 9/03 at 102 Aaa 4,327,250
TENNESSEE - 0.5%
2,000,000 Knoxville Community Development Corporation,
Multi-Family Mortgage (GNMA),
6.200%, 7/20/28 7/03 at 101 AAA 1,934,280
TEXAS - 3.7%
4,000,000 Texas Southern University, 5.750%, 8/01/18 8/03 at 101 Aaa 3,822,000
1,915,000 Texas Veterans Housing General Obligation,
Alternative Minimum Tax, 6.800%, 12/01/23 12/03 at 102 AA 1,948,072
2,845,000 Austin Combined Utility System, 11.125%, 11/15/09
(Pre-refunded to 11/15/99) 11/99 at 100 Aaa 3,558,953
6,370,000 Brazos River Authority, Pollution Control (Texas
Utilities Electric Company), 5.500%, 5/01/22 11/03 at 102 Aaa 5,812,243
UTAH - 2.7%
6,000,000 Utah Associated Municipal Power Systems,
5.375%, 12/01/19 12/03 at 101 Aaa 5,289,900
3,600,000 Utah State Board of Regents, Student Loan,
Alternative Minimum Tax, 5.900%, 11/01/13 11/03 at 102 Aaa 3,440,124
2,720,000 Salt Lake County Water Conservancy District,
5.350%, 10/01/18 10/03 at 100 Aaa 2,396,538
WASHINGTON - 6.9%
Washington Public Power Supply System, Nuclear
Project No. 1:
3,750,000 5.600%, 7/01/15 7/03 at 102 Aaa 3,468,263
11,000,000 5.700%, 7/10/17 7/03 at 102 Aaa 10,240,780
6,295,000 Washington Public Power Supply System, Nuclear
Project No. 3, 5.600%, 7/01/17 7/03 at 102 Aaa 5,785,735
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
Seattle Metropolitan Municipality Sewer System:
$ 1,900,000 5.450%, 1/01/20 1/03 at 102 Aaa $ 1,709,867
3,935,000 5.450%, 1/01/21 1/03 at 102 Aaa 3,502,544
4,000,000 Snohomish County, Public Utility District No. 1,
Electric System, 5.800%, 1/01/24 1/04 at 102 A1 3,647,240
WEST VIRGINIA - 2.2%
10,000,000 Mason County Pollution Control (Ohio Power
Company), 5.450%, 12/01/16 12/03 at 102 Aaa 9,069,200
WISCONSIN - 6.8%
2,000,000 Wisconsin Health and Educational Facilities
Authority (Children's Hospital of Wisconsin,
6.500%, 8/15/10 8/02 at 102 Aaa 2,073,120
6,000,000 Wisconsin Health and Educational Facilities
Authority (Sisters of the Sorrowful Mother
Ministry), 5.400%, 8/15/13 8/03 at 102 Aaa 5,468,300
14,500,000 Wisconsin Housing and Economic Development
Authority, 5.800%, 11/01/13 1/04 at 102 A1 13,805,301
6,000,000 Superior Limited Obligation (Detroit Edison
Company), 6.900%, 8/01/21 No Opt. Call Aaa 6,632,098
$419,465,000 Total Investments - (cost $422,733,802) - 99.1% 405,841,638
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.1%
$ 700,000 Missouri Health and Educational Facilities Authority
============
(Washington University), Variable Rate Demand
Bonds, 5.100%, 3/01/17t VMIG-1 700,000
Other Assets Less Liabilities - 0.8% 3,128,545
Net Assets - 100% $409,670,183
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 78 $368,446,545 91%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 1 1,948,072 1
PORTFOLIO OF A+ A1 3 21,335,301 5
INVESTMENTS A, A- A, A2, A3 1 14,111,720 3
(EXCLUDING
TEMPORARY
INVESTMENTS):
TOTAL 83 $405,841,638 100%
<FN>
All of the bonds in the portfolio, 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 to ensure the timely payment of principal and interest.
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
(WI) Security was purchased on a when-issued basis (note 1).
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
(Unaudited)
<CAPTION>
NQI NIO NIF NPE
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $811,338,815 $1,770,705,371 $418,848,442 $304,338,808
Temporary investments in short-term municipal
securities, at amortized cost (note 1) -- 13,400,000 1,000,000 15,600,000
Cash 3,299,601 132,477 225,069 3,192,596
Receivables:
Interest 16,907,275 36,296,364 8,023,904 5,541,080
Investments sold 270,894 451,013 30,463 --
Prepaid Preferred shares auction fees (note 1) 568,463 315,983 205,286 --
Other assets 39,239 127,198 37,910 29,784
------------ -------------- ------------ ------------
Total assets 832,424,287 1,821,428,406 428,371,074 328,702,268
------------ -------------- ------------ ------------
LIABILITIES
Payable for investments purchased -- 24,334,157 -- 8,232,053
Accrued expenses:
Management fees (note 6) 428,703 907,824 224,496 169,303
Other 273,844 489,923 92,319 59,911
Preferred share dividends payable 537,950 894,203 79,540 50,745
Common share dividends payable 3,155,192 6,526,036 1,491,631 1,058,992
------------ -------------- ------------ ------------
Total liabilities 4,395,689 33,152,143 1,887,986 9,571,004
------------ -------------- ------------ ------------
Net assets (note 7) $828,028,598 $1,788,276,263 $426,483,088 $319,131,264
============ ============== ============ ============
Preferred shares, at liquidation value $260,000,000 $ 600,000,000 $140,000,000 $110,000,000
============ ============== ============ ============
Preferred shares outstanding 10,400 24,000 5,600 4,400
============ ============== ============ ============
Common shares outstanding 37,339,555 79,585,806 19,123,476 15,128,458
============ ============== ============ ============
Net asset value per Common share outstanding
(net assets less Preferred shares at liquidation value,
divided by Common shares outstanding) $ $15.21 $ 14.93 $ 14.98 $ 13.82
============ ============== ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
(Unaudited)
<CAPTION>
NPX
<S> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $405,841,638
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 700,000
Cash 5,691,494
Receivables:
Interest 8,568,583
Investments sold 15,000
Prepaid Preferred shares auction fees (note 1) --
Other assets 67,359
------------
Total assets 420,884,074
------------
LIABILITIES
Payable for investments purchased 9,461,432
Accrued expenses:
Management fees (note 6) 217,457
Other 158,330
Preferred share dividends payable 107,185
Common share dividends payable 1,269,487
------------
Total liabilities 11,213,891
------------
Net assets (note 7) $409,670,183
============
Preferred shares, at liquidation value $158,900,000
============
Preferred shares outstanding 6,356
============
Common shares outstanding 20,642,068
============
Net asset value per Common share outstanding
(net assets less Preferred shares at liquidation value,
divided by Common shares outstanding) $ 12.15
============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended April 30, 1995
(Unaudited)
<CAPTION>
NQI NIO NIF NPE
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income (note 1) $27,134,487 $ 56,830,969 $13,131,716 $ 9,553,337
Taxable market discount -- -- 5,047 --
----------- ------------ ------------ -----------
Total income 27,134,487 56,830,969 13,136,763 9,553,337
----------- ------------ ------------ -----------
Expenses:
Management fees (note 6) 2,515,070 5,299,159 1,307,742 976,861
Preferred shares--auction fees 319,642 785,160 188,025 136,369
Preferred shares--dividend disbursing agent fees 19,836 34,712 9,918 14,878
Shareholders' servicing agent fees and expenses 68,859 113,732 22,949 18,122
Custodian's fees and expenses 56,809 86,852 35,910 32,932
Directors'/Trustees' fees and expenses (note 6) 3,184 3,779 2,721 1,546
Professional fees 10,512 15,472 10,704 10,019
Shareholders' reports--printing and mailing expenses 115,063 189,954 44,010 19,796
Stock exchange listing fees 17,278 33,708 7,604 12,341
Portfolio insurance expense 108,057 185,830 -- 6,057
Investor relations expense 20,997 47,641 12,282 8,894
Other expenses 17,687 36,763 14,536 11,236
----------- ------------ ------------ -----------
Total expenses 3,272,994 6,832,762 1,656,401 1,249,051
----------- ------------ ------------ -----------
Net investment income 23,861,493 49,998,207 11,480,362 8,304,286
----------- ------------ ------------ -----------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) 5,006,572 757,654 (58,854) (1,246,168)
Net change in unrealized appreciation or depreciation
of investments 22,071,430 71,864,581 18,077,461 20,671,712
----------- ------------ ------------ -----------
Net gain from investments 27,078,002 72,622,235 18,018,607 19,425,544
----------- ------------ ------------ -----------
Net increase in net assets from operations $50,939,495 $122,620,442 $29,498,969 $27,729,830
=========== ============ ============ ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended April 30, 1995
(Unaudited)
<CAPTION>
NPX
<S> <C>
INVESTMENT INCOME
Interest income (note 1) $11,993,122
Taxable market discount --
------------
Total income 11,993,122
------------
Expenses:
Management fees (note 6) 1,247,496
Preferred shares--auction fees 196,993
Preferred shares--dividend disbursing agent fees 22,316
Shareholders' servicing agent fees and expenses 21,473
Custodian's fees and expenses 33,031
Directors'/Trustees' fees and expenses (note 6) 5,394
Professional fees 12,949
Shareholders' reports--printing and mailing expenses 26,450
Stock exchange listing fees 8,500
Portfolio insurance expense 29,806
Investor relations expense 8,543
Other expenses 14,933
------------
Total expenses 1,627,884
------------
Net investment income 10,365,238
------------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (9,050,268)
Net change in unrealized appreciation or depreciation
of investments 33,517,702
------------
Net gain from investments 24,467,434
------------
Net increase in net assets from operations $34,832,672
============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NQI NIO
6 months ended Year ended 6 months ended Year ended
4/30/95 10/31/94 4/30/95 10/31/94
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 23,861,493 $ 47,368,738 $ 49,998,207 $ 98,534,967
Net realized gain (loss) from investment transactions,
net of taxes, if applicable 5,006,572 (2,737,017) 757,654 164,199
Net change in unrealized appreciation or depreciation
of investments 22,071,430 (73,182,324) 71,864,581 (173,962,074)
------------ ------------ -------------- --------------
Net increase (decrease) in net assets from operations 50,939,495 (28,550,603) 122,620,442 (75,262,908)
------------ ------------ -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (18,931,169) (38,705,583) (39,156,217) (79,665,406)
Preferred shareholders (5,461,627) (9,581,324) (12,210,554) (19,792,559)
From accumulated net realized gains from
investment transactions:
Common shareholders -- (529,302) -- (883,406)
Preferred shareholders -- (82,589) -- (186,720)
------------ ------------ -------------- --------------
Decrease in net assets from distributions to shareholders (24,392,796) (48,898,798) (51,366,771) (100,528,091)
------------ ------------ -------------- --------------
CAPITAL SHARE TRANSACTIONS (note 2)
Common shares:
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions
from net investment income and from net
realized gains from investment transactions -- 2,110,084 -- --
Preferred shares--net proceeds from sale of shares -- -- -- --
------------ ------------ -------------- --------------
Net increase in net assets derived from capital
share transactions -- 2,110,084 -- --
------------ ------------ -------------- --------------
Net increase (decrease) in net assets 26,546,699 (75,339,317) 71,253,671 (175,790,999)
Net assets at beginning of period 801,481,899 876,821,216 1,717,022,592 1,892,813,591
------------ ------------ -------------- --------------
Net assets at end of period $828,028,598 $801,481,899 $1,788,276,263 $1,717,022,592
============ ============ ============== ==============
Balance of undistributed net investment income
at end of period $ 2,078,755 $ 2,610,058 $ 4,853,019 $ 6,221,583
============ ============ ============== ==============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NIF NPE
6 months ended Year ended 6 months ended Year ended
4/30/95 10/31/94 4/30/95 10/31/94
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 11,480,362 $ 22,798,315 $ 8,304,286 $ 16,634,025
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (58,854) (252,323) (1,246,168) (961,639)
Net change in unrealized appreciation or depreciation
of investments 18,077,461 (42,057,479) 20,671,712 (41,716,448)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from operations 29,498,969 (19,511,487) 27,729,830 (26,044,062)
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (8,949,787) (18,348,977) (6,490,110) (14,311,525)
Preferred shareholders (2,755,742) (4,738,935) (2,116,916) (2,876,081)
From accumulated net realized gains from
investment transactions:
Common shareholders -- -- -- --
Preferred shareholders -- -- -- --
------------ ------------ ------------ ------------
Decrease in net assets from distributions to shareholders (11,705,529) (23,087,912) (8,607,026) (17,187,606)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Common shares:
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions
from net investment income and from net
realized gains from investment transactions -- -- -- --
Preferred shares--net proceeds from sale of shares -- -- -- --
------------ ------------ ------------ ------------
Net increase in net assets derived from capital
share transactions -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 17,793,440 (42,599,399) 19,122,804 (43,231,668)
Net assets at beginning of period 408,689,648 451,289,047 300,008,460 343,240,128
------------ ------------ ------------ ------------
Net assets at end of period $426,483,088 $408,689,648 $319,131,264 $300,008,460
============ ============ ============ ============
Balance of undistributed net investment income
at end of period $ 1,089,590 $ 1,314,757 $ 661,505 $ 964,245
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NPX
6 months ended Year ended
4/30/95 10/31/94
<S> <C> <C>
OPERATIONS
Net investment income $ 10,365,238 $ 20,193,798
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (9,050,268) (10,409,736)
Net change in unrealized appreciation or depreciation
of investments 33,517,702 (55,190,281)
------------ ------------
Net increase (decrease) in net assets from operations 34,832,672 (45,406,219)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (7,802,705) (15,997,611)
Preferred shareholders (3,051,384) (4,047,134)
From accumulated net realized gains from
investment transactions:
Common shareholders -- --
Preferred shareholders -- --
------------ ------------
Decrease in net assets from distributions to shareholders (10,854,089) (20,044,745)
------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Common shares:
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions
from net investment income and from net
realized gains from investment transactions -- --
Preferred shares--net proceeds from sale of shares -- 156,068,392
------------ ------------
Net increase in net assets derived from capital
share transactions -- 156,068,392
------------ ------------
Net increase (decrease) in net assets 23,978,583 90,617,428
Net assets at beginning of period 385,691,600 295,074,172
------------ ------------
Net assets at end of period $409,670,183 $385,691,600
============ ============
Balance of undistributed net investment income
at end of period $ 707,905 $ 1,196,756
============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At April 30, 1995, the National Funds (the "Funds") covered in this report and
their corresponding New York 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, Inc. (NPE) and Nuveen Insured Premium
Income Municipal Fund 2 (NPX).
The Funds are registered under the Investment Company Act of 1940 as
closed-end, diversified management investment companies.
The following is a summary of significant accounting policies followed by
the Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
Portfolio securities for which market quotations are readily available are
valued at the mean between the quoted bid and asked prices or the yield
equivalent. Portfolio securities for which market quotations are not readily
available are valued at fair value by consistent application of methods
determined in good faith by the Board of Directors/Trustees. Temporary
investments in securities that have variable rate and demand features
qualifying them as short-term securities are traded and valued at amortized
cost.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery
basis may be settled a month or more after the transaction date. The
securities so purchased are subject to market fluctuation during this period.
The Funds have instructed the custodian to segregate assets in a separate
account with a current value at least equal to the amount of their purchase
commitments. At April 30, 1995, NIO, NPE and NPX had outstanding purchase
commitments of $24,334,157, $8,232,053 and $9,461,432, respectively. There
were no such purchase commitments in either NQI or NIF.
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt
securities when required for federal income tax purposes.
Federal Income Taxes
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies by distributing all of their net
investment income, in addition to any significant amounts of net realized
gains from investments, to shareholders. The Funds currently consider
significant net realized gains as amounts in excess of $.01 per Common share.
Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal
income tax, to retain such tax-exempt status when distributed to shareholders
of the Funds.
Dividends and Distributions to Shareholders
Net investment income is declared as a dividend monthly and payment is made or
reinvestment is credited to shareholder accounts after month-end. Net realized
gains from securities transactions are distributed to shareholders not less
frequently than annually only to the extent they exceed available capital loss
carryovers.
<PAGE>
Distributions to shareholders of net investment income and net realized
capital gains are recorded on the ex-dividend date. The amount and timing of
such distributions are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
Accordingly, temporary over-distributions as a result of these differences may
result and will be classified as either distributions in excess of net
investment income or distributions in excess of accumulated net realized
capital gains, if applicable.
<TABLE>
Preferred Shares
The following Funds have issued and outstanding $25,000 stated value Preferred
shares. Each Fund's Preferred shares are issued in more than one Series. The
dividend rate on each Series may change every seven days, as set by the
auction agent, except for those Series which have lengthened their current
dividend periods from seven days to three and five years (as indicated below).
The number of shares outstanding, by Series and in total, at April 30, 1995,
for each Fund is as follows:
<CAPTION>
NQI NIO NIF NPE
<S> <C> <C> <C> <C>
Number of shares:
Series M 2,600 4,000 -- --
Series T 2,600 4,000 -- 2,200
Series W 2,600* 4,000 -- --
Series Th -- 4,000 2,800 2,200
Series Th2 -- 4,000* -- --
Series F 2,600** 4,000* 2,800* --
------ ------ ----- -----
Total 10,400 24,000 5,600 4,400
====== ====== ===== =====
<CAPTION>
NPX
<S> <C>
Number of shares:
Series M 2,080
Series T --
Series W 2,080
Series Th --
Series Th2 --
Series F 2,196
-----
Total 6,356
=====
<FN>
*Three year period **Five year period
Preferred share auction fees paid in connection with lengthening the dividend
periods on the Series noted above have been capitalized and are being
amortized over the respective dividend periods.
</TABLE>
<PAGE>
Insurance
The Funds invest in municipal securities which are covered by insurance
guaranteeing the timely payment of principal and interest thereon or backed by
an escrow or trust account containing sufficient U.S. Government or U.S.
Government agency securities to ensure the timely payment of principal and
interest. Each insured municipal security is covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance. Such insurance
does not guarantee the market value of the municipal securities or the value
of the Funds' shares. Original Issue Insurance and Secondary Market Insurance
remain in effect as long as the municipal securities covered thereby remain
outstanding and the insurer remains in business, regardless of whether the
Funds ultimately dispose of such municipal securities. Consequently, the
market value of the municipal securities covered by Original Issue Insurance
or Secondary Market Insurance may reflect value attributable to the insurance.
Portfolio Insurance is effective only while the municipal securities are held
by the Funds. Accordingly, neither the prices used in determining the market
value of the underlying municipal securities nor the net asset value of the
Funds' shares include value, if any, attributable to the Portfolio Insurance.
Each policy of the Portfolio Insurance does, however, give the Funds the right
to obtain permanent insurance with respect to the municipal security covered
by the Portfolio Insurance policy at the time of its sale.
<PAGE>
<TABLE>
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
<CAPTION>
NQI NIO
6 months ended Year ended 6 months ended Year ended
4/30/95 10/31/94 4/30/95 10/31/94
<S> <C> <C> <C> <C>
Common shares:
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from
net realized gains from investment transactions -- 127,585 -- --
------ ------- ------ ------
Net increase -- 127,585 -- --
====== ======= ====== ======
Preferred shares sold -- -- -- --
====== ======= ====== ======
<CAPTION>
NIF NPE
6 months ended Year ended 6 months ended Year ended
4/30/95 10/31/94 4/30/95 10/31/94
<S> <C> <C> <C> <C>
Common shares:
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from
net realized gains from investment transactions -- -- -- --
------ ------ ------ ------
Net increase -- -- -- --
====== ====== ====== ======
Preferred shares sold -- -- -- --
====== ====== ====== ======
<CAPTION>
NPX
6 months ended Year ended
4/30/95 10/31/94
<S> <C> <C>
Common shares:
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from
net realized gains from investment transactions -- --
------ -----
Net increase -- --
====== =====
Preferred shares sold -- 6,356
====== =====
</TABLE>
<PAGE>
<TABLE>
3. SECURITIES TRANSACTIONS
Purchase and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the six months ended
April 30, 1995, were as follows:
<CAPTION>
NQI NIO NIF NPE
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $119,861,217 $177,298,742 $ 9,464,916 $47,910,030
Temporary municipal investments 65,700,000 189,945,000 19,600,000 80,600,000
SALES AND MATURITIES
Investments in municipal securities 131,402,946 173,385,135 8,509,476 55,793,135
Temporary municipal investments 66,200,000 189,945,000 19,600,000 67,200,000
============ ============ =========== ===========
<CAPTION>
NPX
<S> <C>
PURCHASES
Investments in municipal securities $55,813,662
Temporary municipal investments 40,500,000
SALES AND MATURITIES
Investments in municipal securities 52,983,586
Temporary municipal investments 39,900,000
===========
At April 30, 1995, the identified cost of investments owned for federal
income tax purposes was the same as the cost for financial reporting purposes
for each Fund.
At October 31, 1994, the Funds' last fiscal year end, the following Funds
had unused capital loss carryovers available for federal income tax purposes
to be applied against future capital gains, if any. If not applied, the
carryovers will expire as follows:
<CAPTION>
NQI NIF NPE NPX
<S> <C> <C> <C> <C>
Expiration year:
2000 $ -- $ 327,554 $ -- $ --
2001 -- 168,003 289,342 --
2002 2,737,017 252,323 961,639 10,409,736
----------- ---------- ---------- -----------
Total $2,737,017 $ 747,880 $1,250,981 $10,409,736
=========== ========== ========== ===========
</TABLE>
<PAGE>
<TABLE>
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On May 1, 1995, the Funds declared dividend distributions from their ordinary
income which were paid June 1, 1995, to shareholders of record on May 15,
1995, as follows:
<CAPTION>
NQI NIO NIF NPE
<S> <C> <C> <C> <C>
Dividend per share $.0845 $.0820 $.0780 $.0700
====== ====== ====== ======
<CAPTION>
NPX
<S> <C>
Dividend per share $.0615
======
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 1995, were as follows:
<CAPTION>
NQI NIO NIF NPE
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $47,000,768 $85,545,167 $21,901,343 $ 4,033,411
Depreciation (3,708,506) (8,626,084) (907,691) (2,926,788)
------------ ----------- ----------- -----------
Net unrealized appreciation (depreciation) $43,292,262 $76,919,083 $20,993,652 $ 1,106,623
============ =========== =========== ===========
<CAPTION>
NPX
<S> <C>
Gross unrealized:
Appreciation $ 2,122,261
Depreciation (19,014,425)
-------------
Net unrealized appreciation (depreciation) $(16,892,164)
=============
</TABLE>
<PAGE>
<TABLE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each
Fund pays to the Adviser an annual management fee, payable monthly, at the
rates set forth below, which are based upon the average daily net asset value
of each Fund:
<CAPTION>
Average daily net asset value Management fee
<S> <C>
For the first $125,000,000 .65 of 1%
For the next $125,000,000 .6375 of 1
For the next $250,000,000 .625 of 1
For the next $500,000,000 .6125 of 1
For the next $1,000,000,000 .6 of 1
For net assets over $2,000,000,000 .5875 of 1
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those Directors/Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
</TABLE>
<PAGE>
<TABLE>
7. COMPOSITION OF NET ASSETS
At April 30, 1995, net assets consisted of:
<CAPTION>
NQI NIO NIF NPE
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value per share, at
liquidation value $260,000,000 $ 600,000,000 $140,000,000 $110,000,000
Common shares, $.01 par value per share 373,396 795,858 191,235 151,285
Paid-in surplus 520,014,558 1,104,893,120 265,015,345 209,708,999
Balance of undistributed net investment income 2,078,755 4,853,019 1,089,590 661,505
Accumulated net realized gain (loss) from investment
transactions 2,269,627 815,183 (806,734) (2,497,148)
Net unrealized appreciation or depreciation of
investments 43,292,262 76,919,083 20,993,652 1,106,623
------------ -------------- ------------ ------------
Net assets $828,028,598 $1,788,276,263 $426,483,088 $319,131,264
============ ============== ============ ============
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000 1,000,000
============ ============== ============ ============
<CAPTION>
NPX
<S> <C>
Preferred shares, $25,000 stated value per share, at
liquidation value $158,900,000
Common shares, $.01 par value per share 206,421
Paid-in surplus 286,208,025
Balance of undistributed net investment income 707,905
Accumulated net realized gain (loss) from investment
transactions (19,460,004)
Net unrealized appreciation or depreciation of
investments (16,892,164)
------------
Net assets $409,670,183
============
Authorized shares:
Common Unlimited
Preferred Unlimited
============
</TABLE>
<PAGE>
<TABLE>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At April 30, 1995, the revenue sources by
municipal purpose for these investments, expressed as a percent of total
investments, were as follows:
<CAPTION>
NQI NIO NIF NPE
<S> <C> <C> <C> <C>
Revenue Bonds:
Housing Facilities 26% 19% 9% 9%
Health Care Facilities 19 21 15 15
Pollution Control Facilities 7 12 17 14
Transportation 3 3 9 12
Electric Utilities 7 3 3 12
Water / Sewer Facilities 2 5 1 3
Educational Facilities 2 2 1 3
Lease Rental Facilities 3 3 2 1
Other 5 5 4 8
General Obligation Bonds 5 7 6 14
Escrowed Bonds 21 20 33 9
---- ---- ---- ----
100% 100% 100% 100%
==== ==== ==== ====
<CAPTION>
NPX
<S> <C>
Revenue Bonds:
Housing Facilities 12%
Health Care Facilities 9
Pollution Control Facilities 9
Transportation 11
Electric Utilities 12
Water / Sewer Facilities 9
Educational Facilities 5
Lease Rental Facilities --
Other 9
General Obligation Bonds 20
Escrowed Bonds 4
----
100%
====
All of the long-term and intermediate-term investments owned by the Funds are
covered by insurance issued by several private insurers or are backed by an
escrow or trust containing U.S. Government or U.S. Government agency
securities, either of which ensure the timely payment of principal and
interest in the event of default. Such insurance or escrow, however, does not
guarantee the market value of the municipal securities or the value of any of
the Funds' shares.
All of the temporary investments in short-term municipal securities have
credit enhancements (letters of credit, guarantees or insurance) issued by
third party domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to
the Portfolio of Investments of each Fund.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<CAPTION>
selected data for a common share outstanding throughout each period is as
follows:
Operating performance Dividends from net investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income mentstt shareholders shareholderst
NQI
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 $14.500 $ .639 $ .724 $ (.507) $(.146)
Year ended 10/31,
1994 16.580 1.269 (2.038) (1.038) (.257)
1993 15.110 1.320 1.574 (1.194) (.212)
1992 14.850 1.347 .244 (1.067) (.229)
12/19/90 to
10/31/91 14.050 1.004 .849 (.684) (.190)
<CAPTION>
NIO
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 14.040 .628 .907 (.492) (.153)
Year ended 10/31,
1994 16.240 1.238 (2.175) (1.001) (.249)
1993 14.400 1.238 1.897 (1.039) (.232)
1992 14.130 1.128 .346 (.874) (.183)
9/19/91 to
10/31/91 14.050 .052 .045 -- --
<CAPTION>
NIF
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 14.050 .600 .942 (.468) (.144)
Year ended 10/31,
1994 16.280 1.192 (2.214) (.960) (.248)
1993 14.030 1.204 2.233 (.975) (.212)
12/19/91 to
10/31/92 14.050 .760 .100 (.600) (.093)
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Common
share
market
To To Organiza- Net asset value
Common Preferred tion and value end end of
shareholders shareholderst offering costs of period period
NQI
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 $ -- $ -- $ -- $15.210 $14.875
Year ended 10/31,
1994 (.014) (.002) -- 14.500 13.125
1993 (.015) (.003) -- 16.580 17.375
1992 (.027) (.008) -- 15.110 15.250
12/19/90 to
10/31/91 -- -- (.179) 14.850 15.500
<CAPTION>
NIO
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 -- -- -- 14.930 14.125
Year ended 10/31,
1994 (.011) (.002) -- 14.040 13.000
1993 (.019) (.005) -- 16.240 16.125
1992 -- -- (.147) 14.400 14.000
9/19/91 to
10/31/91 -- -- (.017) 14.130 14.875
<CAPTION>
NIF
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 -- -- -- 14.980 13.750
Year ended 10/31,
1994 -- -- -- 14.050 12.500
1993 -- -- -- 16.280 15.625
12/19/91 to
10/31/92 -- -- (.187) 14.030 14.000
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value** value** thousands) net assetsttt net assetsttt rate
NQI
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 17.55% 8.59% $ 828,029 .81*% 5.94*% 15%
Year ended 10/31,
1994 (19.13) (6.43) 801,482 .82 5.64 22
1993 22.55 18.34 876,821 .80 5.76 7
1992 5.32 9.36 815,993 .78 6.06 5
12/19/90 to
10/31/91 8.04 10.83 801,050 .77* 6.14* 33
<CAPTION>
NIO
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 12.73 10.07 1,788,276 .79* 5.79* 10
Year ended 10/31,
1994 (13.60) (7.59) 1,717,023 .79 5.44 20
1993 23.41 20.75 1,892,814 .81 5.36 5
1992 (.14) 8.21 1,745,207 .79 5.55 13
9/19/91 to
10/31/91 (.83) .57 1,116,736 .77* 4.00* --
<CAPTION>
NIF
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 13.94 10.18 426,483 .81* 5.58* 2
Year ended 10/31,
1994 (14.53) (8.06) 408,690 .81 5.30 4
1993 19.03 23.67 451,289 .81 5.31 9
12/19/91 to
10/31/92 (2.77) 4.13 407,907 .81* 5.00* 3
<FN>
See notes on page 72.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<CAPTION>
selected data for a common share outstanding throughout each period is as
follows:
Operating performance Dividends from net investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income mentstt shareholders shareholderst
NPE
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 $12.560 $ .549 $ 1.280 $(.429) $(.140)
Year ended
10/31/94 15.420 1.100 (2.824) (.946) (.190)
12/17/92 to
10/31/93 14.050 .779 1.453 (.584) (.095)
<CAPTION>
NPX
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 10.990 .502 1.184 (.378) (.148)
Year ended
10/31/94 14.290 .978 (3.170) (.775) (.196)
7/22/93 to
10/31/93 14.050 .114 .228 (.064) --
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Common
share
market
To To Organiza- Net asset value
Common Preferred tion and value end end of
shareholders shareholderst offering costs of period period
NPE
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 $ -- $ -- $ -- $13.820 $12.500
Year ended
10/31/94 -- -- -- 12.560 11.125
12/17/92 to
10/31/93 -- -- (.183) 15.420 15.000
<CAPTION>
NPX
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 -- -- -- 12.150 10.625
Year ended
10/31/94 -- -- (.137) 10.990 9.875
7/22/93 to
10/31/93 -- -- (.038) 14.290 13.875
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value** value** thousands) net assetsttt net assetsttt rate
NPE
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 16.45% 13.75% $319,131 .82*% 5.44*% 16%
Year ended
10/31/94 (20.42) (12.88) 300,008 .82 5.14 16
12/17/92 to
10/31/93 4.01 14.13 343,240 .81* 4.75* 10
<CAPTION>
NPX
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 11.61 14.32 409,670 .83* 5.29* 14
Year ended
10/31/94 (23.99) (18.24) 385,692 .83 4.83 25
7/22/93 to
10/31/93 (7.08) 2.16 295,074 .86* 3.16* --
<FN>
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes
in market value per share. Total Return on Net Asset Value is the combination
of reinvested dividend income, reinvested capital gains distributions, if any,
and changes in net asset value per share.
t The amounts shown are based on Common share equivalents.
tt Net of taxes, if applicable.
ttt Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
</TABLE>
<PAGE>
Our commitment to you
Photo of John Nuveen
For nearly 100 years, Nuveen has earned its reputation as a tax-free income
specialist by focusing on municipal bonds.
For almost a century, John Nuveen & Co. Incorporated has concentrated its
resources and expertise in one area: municipal bonds. We are one of the oldest
and largest investment banking firms specializing exclusively in municipal
securities, and we strive to be the best.
Our approach to managing our shareholders' investments endures. We maintain
a sharp focus on the needs of prudent investors and their families, offer
investments of quality, and then work to make them better by seeking out
opportunity. We hold to a dedicated belief in the importance of research. And
we sustain a commitment to sound financial management through value investing.
Our hope is that by providing quality investments we may foster opportunity
for our investors. Through careful research, attention to detail, and our
philosophy of managing for long-term value, we strive to provide our
shareholders with the attractive level of income they need to achieve their
personal goals and aspirations.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
ETF4-JUN 95
