SEMIANNUAL REPORT April 30, 2000
NUVEEN Investments Invest well. Look ahead. LEAVE YOUR MARK.sm
Exchange-Traded Funds
Dependable, tax-free income to help you keep more of what you earn.
INSURED QUALITY
NQI
INSURED OPPORTUNITY
NIO
PREMIER INSURED INCOME
NIF
INSURED PREMIUM INCOME 2
NPX
PHOTO OF: WATER
PHOTO OF: CHILD
<PAGE>
Credit Quality Highlights
As of April 30, 2000
Nuveen Insured Quality Municipal Fund, Inc. (NQI)
PIE CHART:
Insured 78%
Insured & U.S. Guaranteed 21%
U.S. Guaranteed 1%
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO)
PIE CHART:
Insured 71%
Insured & U.S. Guaranteed 28%
U.S. Guaranteed 1%
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF)
PIE CHART:
Insured 66%
Insured & U.S. Guaranteed 20%
U.S. Guaranteed 14%
Nuveen Insured Premium Income Municipal Fund 2 (NPX)
PIE CHART:
Insured 91%
Insured & U.S. Guaranteed 9%
CONTENTS
1 Dear Shareholder
3 Portfolio Manager's Comments
6 NQI's Performance Overview
7 NIO's Performance Overview
8 NIF's Performance Overview
9 NPX's Performance Overview
10 Portfolio of Investments
36 Statement of Net Assets
37 Statement of Operations
38 Statement of Changes in Net Assets
40 Notes to Financial Statements
45 Financial Highlights
48 Build Your Wealth Automatically
49 Fund Information
All the long-term and intermediate investments owned by the Funds are either
covered by insurance issued by several private insurers or are backed by an
escrow or trust containing U.S. Government agency securities, both of which
ensure the timely payment of principal and interest in the event of default.
Such insurance or escrow, however, does not guarantee the market value of the
municipal securities or the value of the Funds' shares.
<PAGE>
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: "Building and sustaining wealth requires sound, ongoing advice."
Dear Shareholder
The primary objective of your Nuveen Municipal Exchange-Traded Fund is to
provide dependable, attractive tax-free dividends. I am pleased to report that
your Fund continued to achieve this goal during the period covered by this
report. I also encourage you to read the Portfolio Manager's Comments later in
this report, where your Fund's manager takes a comprehensive look at the
investment environment and performance of your Fund for this period.
As an income-oriented investment, we believe your Nuveen Exchange-Traded Fund is
well positioned to be a core element of your long-term investment
program. With the help of your financial advisor, all of us at Nuveen
Investments are dedicated to providing the services, products, perspectives and
solutions you need to help you meet your personal and family goals.
NEW WAYS TO THINK ABOUT WEALTH
In the past few years, much attention
has been directed toward the ways we're accumulating wealth. At Nuveen, we
believe it is just as important for investors also to focus on preserving that
wealth, on the responsibilities wealth brings with it, and on the legacies we
will leave for future generations.
This long-term perspective is a key to understanding our portfolio management
strategies, our insistence on quality and our determination to provide
investments that can withstand the test of time. It is a philosophy that we
think is encapsulated well in our brand theme: Invest Well. Look Ahead. Leave
Your Mark.SM
INVEST WELL
Building and sustaining the wealth that can result in lasting legacies requires
a well-developed plan, sound on-going advice, and the discipline to stay focused
on long-term results. With today's abundance of investment products and offers,
it also increasingly requires an experienced and trusted advisor who can guide
you through the opportunities and the pitfalls. With so much potentially at
stake, Nuveen Investments is dedicated to delivering quality products like your
Nuveen Fund through the financial advisors who assist you in making wise
investment choices and help you manage your most important financial assets.
<PAGE>
LOOK AHEAD
We urge all our investors to look ahead, not only to their own goals and
futures, but toward those of future generations as well. We now stand on the
threshold of a new century, anticipating a time of change, discovery and
potential that may one day make the year 2000 seem as archaic as the year 1900.
We don't know all that the future will bring, but we do know that a
well-diversified, carefully-monitored investment program that combines elements
of growth, income and capital preservation will form a solid foundation that can
help meet whatever opportunities and challenges the new century has to offer.
LEAVE YOUR MARK
With the enormous wealth creation of the last decade and the considerable
intergenerational transfer of wealth that is expected to occur over the next 20
years, investors today have a significant opportunity to shape their own and
their family's financial future. These may include establishing trusts,
endowments or legacies that can directly affect our families and communities for
generations to come. We at Nuveen Investments are committed to facilitating and
raising the level of dialogue between investors and their financial advisors in
ways that can help meet goals that extend far beyond the boundaries of a single
lifespan.
Since 1898, the name Nuveen has been synonymous with quality investments,
careful research and prudent management. Today, more than ever, the investments
and services we offer through financial advisors may be well suited to those who
recognize and embrace the need for building and managing wealth.
We encourage you to speak with your financial advisor about how you can enhance
your investment program in ways that help you Look Ahead, Invest Well and Leave
Your Mark.
Sincerely,
/S/ TIMOTHY R. SCHWERTFEGER
TIMOTHY R. SCHWERTFEGER
Chairman of the Board
June 15, 2000
Sidebar text: "We believe your Nuveen Exchange-Traded Fund is well positioned
to be a core element of your long-term investment program."
<PAGE>
Nuveen National Insured Exchange-Traded Funds (NQI, NIO, NIF, NPX)
Portfolio Manager's Comments
PORTFOLIO MANAGER STEVE KRUPA REVIEWS THE NATIONAL ECONOMY, ITS IMPACT ON THE
MUNICIPAL MARKET AND FUND PERFORMANCE, AND THE KEY STRATEGIES USED TO MANAGE THE
NUVEEN NATIONAL INSURED EXCHANGE-TRADED FUNDS. STEVE, WHO HAS MORE THAN 20 YEARS
OF INVESTMENT EXPERIENCE AT NUVEEN, HAS MANAGED NQI AND NIO SINCE THEIR
INCEPTIONS IN 1990 AND 1991, ADDING PORTFOLIO MANAGEMENT RESPONSIBILITIES FOR
NIF AND NPX IN 1998.
WHAT FACTORS AFFECTED THE U.S. ECONOMY OVER THE PAST 12 MONTHS?
In April 2000, the United States entered its tenth year of uninterrupted
economic expansion, the longest continuous expansion in the nation's history.
While the strong growth trends and relatively benign inflation that have been
the hallmarks of this expansion remained largely in place, unabated consumer
spending and tight labor markets kept the Federal Reserve concerned that the
pace of growth would eventually trigger a resurgence of inflation.
The shift in financial market sentiment to worries about runaway growth and
inflationary pressures was a marked contrast to the concerns about slower growth
and deflation that followed the global financial crisis of 1998. The primary
catalysts behind this change in sentiment - in addition to consumer spending and
the scarcity of qualified workers - include the quick recovery of the global
economy following the 1998 events, rising commodity prices, and the accelerating
effect of excess cash created to ensure liquidity during the transition into the
year 2000.
All of this prompted the Federal Reserve to embark on a tightening path. In June
1999 the Fed began a series of five short-term interest rate increases within
one year that eventually raised the federal funds rate 1.25% to 6.0%. (In May,
the Fed raised rates a sixth time, bringing the fed funds rate to 6.5%.) As the
Fed acted and then continued to leave the door open for additional tightenings,
investor uncertainty grew, the equity markets became increasingly volatile, and
bond prices declined as yields pushed higher. The shift in the economic
landscape has been complicated by the rapidly shrinking supply of long-term
Treasuries, as the U.S. government accelerated its program to buy back Treasury
debt. This has created some severe dislocations within and between Treasuries
and other bond markets. Following the Fed's rate hikes, the Treasury yield curve
remained inverted, with the yield on a two-year notes about 60 basis points
higher than that of a 30-year bond.
The Fed's rapid action to rein in the monetary base, plus the shift in policy
from global monetary stimulus to restraint, has provided a foundation that may
help to counterbalance some of the current pressures in the economy. Investors
continue to hope that the Fed's moves will not jeopardize the expansion by doing
too little or too much, but instead successfully engineer a soft landing for the
U.S. economy.
HOW HAVE THESE EVENTS AFFECTED THE MUNICIPAL MARKET?
The cumulative effects of the economic events of the past 12 months were
negative for the fixed-income markets, including municipal bonds. Once the Fed
began its series of interest rate hikes, the rise in municipal yields
accelerated. Over the 12 months ending April 2000, long-term municipal yields
rose about 80 basis points, compared with a 30-point gain in 30-year Treasury
yields. Concurrent with the rise in yields, municipal bond prices slumped. As a
result, by the end of April 2000, long-term municipal yields were 102% of
30-year Treasury yields, compared with the historical average of 86% for the
period 1986-1999.
During the first four months of 2000, new municipal issuance declined more than
26% from the level of the first four months of 1999. This continued the trend
begun last year, as the rising interest rate environment deterred municipalities
from issuing new bonds or refinancing old debt. In addition, robust tax revenue
collections have enabled many state and local governments to use more
pay-as-you-go financings rather than bond issuance to fund projects. Overall,
the decline in supply helped to offset some of the negative impact that higher
interest rates and equity market activity had on the demand for municipal bonds
and, ultimately, on bond prices.
According to the most recent data released by the Federal Reserve Board, demand
for municipal bonds on the part of individual investors continued to grow in
1999, maintaining a trend seen over the past four years. While total U.S.
municipal debt grew by 5% in 1999, holdings by individual investors grew 11%. As
<PAGE>
of January 2000, these investors held 34% of the outstanding municipal debt in
the U.S. This provided some support for a municipal market experiencing a
decline in demand from institutional investors. Buying by mutual and money
market funds, which together accounted for 29% of municipal debt holdings,
reflected the lower demand for bond funds. Property and casualty insurance
companies, the fourth largest group of municipal bond holders with 14%, had less
cash to spend on municipals due to claims from natural disasters and pricing
competition - although we have seen a recent pick up in demand from this group.
The economic prosperity of the past decade has benefited all sectors of the
municipal bond market, resulting in upgrades in debt ratings. In 1999, upgrades
by Standard & Poor's outnumbered downgrades by a ratio of almost 4 to 1. In
fact, the fourth quarter of 1999 marked the 17th consecutive quarter in which
upgrades exceeded downgrades. The tax-backed sector, which includes general
obligation bonds issued by states, local municipalities, and school and special
purpose districts, fared particularly well in 1999, with upgrades outnumbering
downgrades 30 to 1.
WERE THE FUNDS' DIVIDENDS AFFECTED BY THE ENVIRONMENT OF THE PAST 12 MONTHS?
During the past year, good call protection helped to support the dividends of
NQI, NIF, and NPX and shield the income of these Funds from erosion. As of April
30, 2000, NQI and NIF had provided shareholders with stable dividends for 24 and
22 consecutive months, respectively, while NPX's record of steady dividends
extended to 42 consecutive months. In NIO, however, the eroding effect of a
number of bond calls impacted the Fund's income, leading to a dividend
adjustment in December 1999. Despite this one adjustment, all of the Funds
continued to provide competitive market yields.
NQI, NIO and NIF have all passed or are approaching their ten-year
anniversaries, meaning many of the high coupon bonds purchased at the time of
their inceptions may become subject to calls. The proceeds from these calls are
being used to purchase current coupon bonds that generally may pay a lower rate
of interest than the bonds they replace. While we actively manage the portfolios
to try to mitigate the effects of this process, bond calls in this environment
may have the net effect of reducing the income the Funds generate to pay
dividends.
In addition, all four Funds are leveraged. Leverage tends to enhance the
dividends paid to common shareholders, but the extent of that benefit is tied to
some degree to the short-term rates the Funds pay their MuniPreferred(R)
shareholders. As short-term rates rise, the income available for common
shareholders decreases. As noted, the Federal Reserve raised short-term rates
six times between June 1999 and May 2000, and these actions have had a
corresponding impact on short-term municipal rates. This may begin to exert an
influence on the common share dividends if short-term rates continue at
historically high recent levels.
OVERALL, HOW DID THESE NUVEEN FUNDS PERFORM OVER THE PAST YEAR?
For the 12 months ended April 30, 2000, the national insured Funds produced
total returns on NAV as shown in the accompanying table. For comparison
purposes, the annual returns for the Lehman Brothers Insured Municipal Bond
Index1 and Lipper Peer Group2 also are presented.
LEHMAN
TOTAL LIPPER
MARKET YIELD TOTAL RETURN ON NAV RETURN1 AVERAGE2
--------------------------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED TAXABLE- ENDED ENDED
4/30/00 EQUIVALENT3 4/30/00 EQUIVALENT3 4/30/00 4/30/00
--------------------------------------------------------------------------------
NQI 6.86% 9.94% -5.01% -2.30% -1.65% -3.96%
--------------------------------------------------------------------------------
NIO 7.15% 10.36% -3.87% -1.18% -1.65% -3.96%
--------------------------------------------------------------------------------
NIF 6.89% 9.99% -4.76% -2.14% -1.65% -3.96%
--------------------------------------------------------------------------------
NPX 6.64% 9.62% -5.01% -2.61% -1.65% -3.96%
--------------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
The relative underperformance of the Funds' total returns on NAV when compared
with the Lehman Index can be attributed largely to their durations,4 which are a
measure of each Fund's NAV volatility in reaction to interest rate movements.
These are leveraged Funds, and while leveraging can enhance the dividends paid
to common shareholders, it also has the effect of lengthening a Fund's duration.
In addition, durations often are lengthened when we look to add call protection
to the portfolios. As of April 30, 2000, the durations of the insured Funds
ranged from 10.89 to 13.36, compared with the Lehman Brothers Insured Municipal
Bond Index's 8.65.
The longer the duration, the more sensitive the Fund's NAV is to changes in
interest rates in either direction. During a period of falling interest rates,
bond prices rise and a long duration enables a Fund's NAV to participate more
fully in market gains. Conversely, when interest rates rise (as they have over
most of the past year), a long duration can make the Fund's NAV more vulnerable
to price declines and produce weaker total return performance.
Over the past year, the durations of these Funds lengthened considerably, due
largely to market action. In addition, proceeds from sold or called bonds were
reinvested in issues with longer durations, which bene-
1 The Funds' performance is compared with that of the Lehman Brothers Insured
Municipal Bond Index, an unleveraged index comprising a broad range of
insured municipal bonds. Results for the Lehman index do not reflect any
expenses.
2 The Funds' total returns are compared with the average annualized return of
the 21 funds in the Lipper Insured Leveraged Municipal Debt Funds category.
Fund and Lipper returns assume reinvestment of dividends.
3 The taxable-equivalent yield/total return represents the yield/total
return that must be earned on a taxable investment in order to equal the
yield/total return of the Nuveen Fund on an after-tax basis. The
taxable-equivalent yield is based on the Fundcurrent market yield and a
federal income tax rate of 31%, while the taxable-equivalent total return
is based on the annualized total return and the 31% federal income tax
rate.
4 Fund duration, also known as leverage-adjusted duration, takes into account
the leveraging process for the Funds and therefore differs from the
duration of the actual portfolio of individual bonds that make up the
Funds. Unless otherwise noted, references to duration in this commentary
are intended to indicate Fund duration.
<PAGE>
fited the Funds by providing attractive yields and better call protection. The
longer durations should help to strengthen the Funds' long-term dividend
prospects and position the Funds to regain net asset value if the bond market
recovers and interest rates decline.
WHAT ABOUT THE FUNDS' SHARE PRICE PERFORMANCE?
The uncertain economic environment, coupled with an investor focus on equity
market performance, has tended to dampen interest in most fixed-income products.
This lack of demand has put pressure on the prices of many municipal bond
investments, including these four Funds.
As shown in the charts on the Performance Overview pages, the share prices for
all four Funds have gradually declined over much of the past year. These price
declines generally were larger than the declines in the Funds' NAVs. As a
result, NPX saw its discount (share price below NAV) widen, while the premiums
(share price above NAV) on NQI, NIO and NIF moved to discounts. With the market
prices of all these Funds now lower than the actual value of the bonds in their
portfolios, shareholders may want to consider taking advantage of this
opportunity to add to their holdings of these Nuveen Funds.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN INSURED FUNDS DURING THE 12
MONTHS ENDED APRIL 30, 2000?
The past 12 months represented a challenging period for all fixed-income
investments, including your Nuveen Fund. However, the period also provided
opportunities to improve the Funds' structures, provide additional
diversification, strengthen the Funds' long-term dividend-paying capabilities,
and enhance tax efficiency by offsetting potential capital gains with capital
losses.
Based on the Funds' different inception dates and portfolios, we employed
slightly different strategies to manage NQI and NIO than we used in NIF and NPX.
In both cases, however, the goal was the same: to improve the structure of the
Fund while maintaining, or possibly even enhancing, its income and dividend
generating potential. In NQI and NIO, we focused on replacing prerefunded bonds
with issues offering longer maturities and extended call protection. The recent
market provided opportunities to implement this strategy without a significant
loss of income. In NIF and NPX, which have lower embedded yields than the other
two insured Funds, we sold some of the lower coupon bonds and reinvested the
proceeds in issues offering higher yields. Again, the rising yields provided by
the recent market helped us implement this strategy.
Overall, we continued to be value investors, searching for undervalued bonds in
overlooked sectors of the market. We believe Nuveen's experienced Research team
provided an advantage in this area, helping us identify attractive situations
and supplying the background we needed to understand issuers. This was
especially true in the healthcare and utilities sectors, where deregulation and
other concerns have caused some investors to avoid the market entirely. Each of
the Insured Funds has significant exposure to healthcare (12% in NPX, 14% in
NIO, and 16% in NQI and NIF) and utilities (14% in NQI and NIO, 15% in NIF, and
22% in NPX). Given Nuveen's research capabilities and prudent investment
approach, we believe these two sectors presented opportunities for informed
investors who understood the dynamics and risks involved.
WHAT IS YOUR OUTLOOK FOR THE NUVEEN INSURED FUNDS?
NIF and NPX currently feature excellent levels of call protection, with only 3%
of NIF and 1% of NPX subject to calls between now and the end of 2001. While NQI
and NIO offer good call protection for the remainder of this year, in 2001 these
two Funds, which were assembled in 1990 and 1991, enter the normal part of the
bond market cycle when bond calls are more likely to occur. In 2001, scheduled
calls could affect approximately 10%-20% of NQI's and NIO's portfolios. Our
strategies for addressing this period include closely monitoring call activity
in the portfolios and taking advantage of opportunities to sell bonds before
their call dates, replacing them with the best bonds available in the market at
the time of sale.
Overall, we plan to focus on the same strategies that we have emphasized over
the past six months, including enhancing portfolio structure and working to
strengthen the Funds' dividend payment capabilities. We expect the market to
continue working its way through a period of uncertainty that may last beyond
the fall elections. Opportunities do arise in these types of markets, and we are
ready to take advantage of developing situations. We believe the Funds continue
to be well positioned to provide attractive income and a measure of portfolio
diversification that can be a valuable benefit to investors now and in the
future.
<PAGE>
Nuveen Insured Quality Municipal Fund, Inc.
Performance Overview
As of April 30, 2000
NQI
PORTFOLIO STATISTICS
Inception Date 12/90
--------------------------------------------------
Share Price $13 3/8
--------------------------------------------------
Net Asset Value $13.94
--------------------------------------------------
Market Yield 6.86%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.94%
--------------------------------------------------
Fund Net Assets ($000) $845,366
--------------------------------------------------
Average Effective Maturity (Years) 19.75
--------------------------------------------------
Leverage-Adjusted Duration 11.80
--------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -9.99% -5.01%
--------------------------------------------------
5-Year 4.72% 5.03%
--------------------------------------------------
Since Inception 5.61% 6.85%
--------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN2
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -7.32% -2.30%
--------------------------------------------------
5-Year 7.63% 7.91%
--------------------------------------------------
Since Inception 8.60% 9.87%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
U.S. Guaranteed 21%
--------------------------------------------------
Transportation 17%
--------------------------------------------------
Healthcare 16%
--------------------------------------------------
Utilities 14%
--------------------------------------------------
Tax Obligation/Limited 10%
--------------------------------------------------
BAR CHART:
1999-2000 MONTHLY TAX-FREE DIVIDENDS PER SHARE
5/99 0.0765
6/99 0.0765
7/99 0.0765
8/99 0.0765
9/99 0.0765
10/99 0.0765
11/99 0.0765
12/99 0.0765
1/00 0.0765
2/00 0.0765
3/00 0.0765
4/00 0.0765
LINE CHART:
SHARE PRICE PERFORMANCE
5/7/99 15.94
15.69
15.44
15.38
15.38
15.31
15.31
15.13
15.25
15.44
15.44
15.31
15.13
14.81
14.44
14.19
14.38
14.44
14.38
13.94
13.94
14
13.19
13.13
13.19
13.75
13.06
13.38
13
12.63
12.06
12.56
13.19
13.25
13
12.75
13
13.31
13.19
12.81
13.13
12.94
12.69
12.69
13.13
13.56
13.63
13.5
13.19
4/28/00 13.38
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%.
2 Taxable-equivalent total return is based on the annualized total return and
a federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen Fund on an after-tax
basis.
<PAGE>
Nuveen Insured Municipal Opportunity Fund, Inc.
Performance Overview
As of April 30, 2000
NIO
PORTFOLIO STATISTICS
Inception Date 9/91
--------------------------------------------------
Share Price $12 1/2
--------------------------------------------------
Net Asset Value $14.18
--------------------------------------------------
Market Yield 7.15%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 10.36%
--------------------------------------------------
Fund Net Assets ($000) $1,829,494
--------------------------------------------------
Average Effective Maturity (Years) 18.55
--------------------------------------------------
Leverage-Adjusted Duration 10.89
--------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -17.72% -3.87%
--------------------------------------------------
5-Year 4.12% 5.50%
--------------------------------------------------
Since Inception 4.44% 6.68%
--------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN2
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -15.12% -1.18%
--------------------------------------------------
5-Year 7.05% 8.40%
--------------------------------------------------
Since Inception 7.38% 9.60%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
U.S. Guaranteed 29%
--------------------------------------------------
Healthcare 14%
--------------------------------------------------
Utilities 14%
--------------------------------------------------
Transportation 12%
--------------------------------------------------
Water and Sewer 11%
--------------------------------------------------
Bar Chart:
1999-2000 MONTHLY TAX-FREE DIVIDENDS PER SHARE
5/99 0.0775
6/99 0.0775
7/99 0.0775
8/99 0.0775
9/99 0.0775
10/99 0.0775
11/99 0.0775
12/99 0.0745
1/00 0.0745
2/00 0.0745
3/00 0.0745
4/00 0.0745
Line Chart:
SHARE PRICE PERFORMANCE
5/7/99 16.13
15.5
15.31
15.31
15.31
15.19
15.19
15.13
15.19
15.19
15.19
14.94
15
14.88
14.38
14.44
14.5
14.31
14.13
13.75
13.81
13.81
13.25
13.13
13.31
13.94
13.19
13.31
13.06
12.25
11.94
12
12.19
12.69
12.19
12.44
12.88
13.06
12.88
12.75
12.56
12.44
12.19
12
12.38
12.5
12.94
12.63
12.38
4/28/00 12.5
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%.
2 Taxable-equivalent total return is based on the annualized total return and
a federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
<PAGE>
Nuveen Premier Insured Municipal Income Fund, Inc.
Performance Overview
As of April 30, 2000
NIF
PORTFOLIO STATISTICS
Inception Date 12/91
--------------------------------------------------
Share Price $13 1/16
--------------------------------------------------
Net Asset Value $14.21
--------------------------------------------------
Market Yield 6.89%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.99%
--------------------------------------------------
Fund Net Assets ($000) $434,853
--------------------------------------------------
Average Effective Maturity (Years) 17.28
--------------------------------------------------
Leverage-Adjusted Duration 11.61
--------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -12.90% -4.76%
--------------------------------------------------
5-Year 5.29% 5.10%
--------------------------------------------------
Since Inception 4.59% 6.33%
--------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN2
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -10.30% -2.14%
--------------------------------------------------
5-Year 8.15% 7.87%
--------------------------------------------------
Since Inception 7.43% 9.11%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
U.S. Guaranteed 34%
--------------------------------------------------
Tax Obligation/Limited 17%
--------------------------------------------------
Healthcare 16%
--------------------------------------------------
Utilities 15%
--------------------------------------------------
Transportation 9%
--------------------------------------------------
Bar Chart:
1999-2000 MONTHLY TAX-FREE DIVIDENDS PER SHARE
5/99 0.075
6/99 0.075
7/99 0.075
8/99 0.075
9/99 0.075
10/99 0.075
11/99 0.075
12/99 0.075
1/00 0.075
2/00 0.075
3/00 0.075
4/00 0.075
Line Chart:
SHARE PRICE PERFORMANCE
5/7/99 15.81
15.75
15.38
15.19
15.19
14.75
15.13
14.94
15.25
15.25
15.13
14.88
15
14.75
14.38
14.38
14.69
14.63
14.19
13.88
13.94
14.13
13.38
13.19
13.13
13.81
13.5
13.38
13.19
13.06
12.38
13.44
13.13
13.13
12.88
13
13.44
13.75
13.31
13.19
13
12.94
12.56
12.19
12.44
13
13.13
12.88
13
4/28/00 13.06
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%.
2 Taxable-equivalent total return is based on the annualized total return and
a federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen Fund on an after-tax
basis.
<PAGE>
Nuveen Insured Premium Income Municipal Fund 2
Performance Overview
As of April 30, 2000
NPX
PORTFOLIO STATISTICS
Inception Date 7/93
--------------------------------------------------
Share Price $10 15/16
--------------------------------------------------
Net Asset Value $12.49
--------------------------------------------------
Market Yield 6.64%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.62%
--------------------------------------------------
Fund Net Assets ($000) $734,277
--------------------------------------------------
Average Effective Maturity (Years) 17.69
--------------------------------------------------
Leverage-Adjusted Duration 13.36
--------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -11.27% -5.01%
--------------------------------------------------
5-Year 6.77% 6.21%
--------------------------------------------------
Since Inception 1.30% 3.84%
--------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN2
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -8.71% -2.61%
--------------------------------------------------
5-Year 9.61% 8.77%
--------------------------------------------------
Since Inception 4.02% 6.36%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
Utilities 22%
--------------------------------------------------
Tax Obligation/Limited 18%
--------------------------------------------------
Healthcare 12%
--------------------------------------------------
Transportation 12%
--------------------------------------------------
Tax Obligation/General 11%
--------------------------------------------------
Bar Chart:
1999-2000 MONTHLY TAX-FREE DIVIDENDS PER SHARE
5/99 0.0605
6/99 0.0605
7/99 0.0605
8/99 0.0605
9/99 0.0605
10/99 0.0605
11/99 0.0605
12/99 0.0605
1/00 0.0605
2/00 0.0605
3/00 0.0605
4/00 0.0605
Line Chart:
SHARE PRICE PERFORMANCE
5/7/99 13.13
12.69
12.75
12.94
12.81
12.56
12.94
12.5
12.63
12.63
12.75
12.63
12.75
12.5
12.38
12.31
12.19
12.06
11.81
11.81
11.81
11.56
10.94
10.56
11.5
11.44
11.5
11.13
10.88
11
10.63
10.69
10.25
10.63
10.66
10.38
10.75
11
10.88
10.88
10.63
10.63
10.69
10.75
10.88
11.31
11.19
10.88
10.69
4/28/00 10.94
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%.
2 Taxable-equivalent total return is based on the annualized total return and
a federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen Fund on an after-tax
basis.
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN INSURED QUALITY MUNICIPAL FUND, INC. (NQI)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALABAMA - 1.8%
$ 8,500 The Special Care Facilities Financing Authority of the City of 7/00 at 100 AAA $ 8,516,915
Birmingham, Alabama, Health Care Facility Revenue Refunding
Bonds, Medical Center East, Series 1986, 7.250%, 7/01/15
2,250 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101 AAA 1,920,803
Warrants, Series 1999-A, 5.125%, 2/01/39
University of South Alabama, Tuition Revenue Bonds, Series 1999:
7,545 0.000%, 11/15/17 No Opt. Call AAA 2,664,819
7,545 0.000%, 11/15/18 No Opt. Call AAA 2,488,869
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 5.0%
5,000 City of Phoenix (Arizona), Civic Improvement Corporation, 7/03 at 102 AAA 5,262,650
Wastewater System Lease Revenue Bonds, Series 1993,
6.125%, 7/01/23 (Pre-refunded to 7/01/03)
10,000 Industrial Development Authority of The County of Pima 7/01 at 102 AAA 10,400,900
(Arizona), Health Care System Revenue Bonds, Carondelet
Health Services, Inc., St. Joseph's and St. Mary's Hospitals
and Health Centers Issue, Series 1991, 6.750%, 7/01/16
Business Development Finance Corporation, Tucson (Arizona),
Local Development Lease Revenue Refunding Bonds, Series 1992:
3,020 6.250%, 7/01/08 (Pre-refunded to 7/01/02) 7/02 at 102 AAA 3,165,262
6,980 6.250%, 7/01/08 7/02 at 102 AAA 7,289,842
15,250 City of Tucson, Arizona, Water System Revenue Bonds, 7/01 at 102 AAA 15,982,458
Series 1991, 7.100%, 7/01/18 (Pre-refunded to 7/01/01)
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 2.2%
9,430 Arkansas Development Finance Authority, Single Family 7/05 at 102 AAA 9,649,436
Mortgage Revenue Bonds, 1995 Series B (Mortgage-Backed
Securities Program), 6.700%, 7/01/27 (Alternative Minimum Tax)
Pope County, Arkansas, Solid Waste Disposal Revenue Bonds,
Series 1991 (Arkansas Power and Light Company Project):
6,400 8.000%, 1/01/21 (Alternative Minimum Tax) 1/01 at 102 BBB+ 6,596,224
2,250 8.000%, 1/01/21 (Alternative Minimum Tax) 1/01 at 102 AAA 2,336,850
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 7.4%
9,000 Certificates of Participation (1991 Financing Project), County 9/06 at 102 AAA 9,169,200
of Alameda, California, Alameda County Public Facilities
Corporation, 6.000%, 9/01/21
12,695 Antioch Area Public Facilities Financing Agency, Community 8/02 at 102 AAA 11,526,044
Facilities District No. 1989-1, Special Tax Bonds, Series 1993,
5.000%, 8/01/18
14,675 California Pollution Control Financing Authority, Pollution Control 9/09 at 101 AAA 13,904,269
Refunding Revenue Bonds (Southern California Edison
Company), 1999 Series C, 5.450%, 9/01/29
5,500 California Statewide Communities Development Authority, 7/04 at 102 AAA 5,616,545
Certificates of Participation, The Salk Institute for Biological
Studies, San Diego, California, 6.200%, 7/01/24
5,000 Inland Empire Solid Waste Financing Authority, 8/06 at 102 AAA 5,371,000
Revenue Bonds, 1996 Series B (Landfill Improvement
Financing Project), 6.000%, 8/01/16 (Alternative Minimum Tax)
11,270 Los Angeles County Metropolitan Transportation Authority 7/03 at 100 AAA 9,995,814
(California), Proposition A, Sales Tax Revenue Refunding
Bonds, Series 1993-A, 5.000%, 7/01/21
6,910 Ontario Redevelopment Financing Authority (San Bernardino 8/03 at 102 AAA 6,916,979
County, California), 1993 Revenue Bonds (Ontario
Redevelopment Project No. 1), 5.850%, 8/01/22
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 9.4%
615 Adams County, Colorado, Single Family Revenue Refunding 6/01 at 103 AAA 637,509
Bonds, 1991 Series A-2, 8.700%, 6/01/12
5,630 E-470 Public Highway Authority, Arapahoe County, Colorado, 8/05 at 103 AAA 5,720,362
Capital Improvement Trust Fund Highway Revenue Bonds
(E-470 Project), Vehicle Registration Fee Bonds, 6.150%, 8/31/26
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COLORADO (continued)
$ 5,000 Colorado Health Facilities Authority, Insured Hospital Revenue 2/01 at 102 AAA $ 5,208,800
Bonds (PSL Healthcare System Project), Series 1991A,
7.250%, 2/15/16 (Pre-refunded to 2/15/01)
4,500 Colorado Health Facilities Authority, Insured Hospital Revenue 2/01 at 102 AAA 4,653,090
Bonds (PSL Healthcare System Project), Series 1991A,
6.250%, 2/15/21 (Pre-refunded to 2/15/01)
6,500 Colorado Health Facilities Authority, Revenue Bonds, 6/08 at 101 AAA 5,575,635
Series 1998 (Sisters of Charity of Leavenworth
Health Services Corporation), 5.000%, 12/01/25
29,250 City and County of Denver, Colorado, Airport System Revenue 11/08 at 101 AAA 24,564,443
Bonds, Series 1998B, 5.000%, 11/15/25
(Alternative Minimum Tax)
27,000 City and County of Denver, Colorado, Airport System Revenue 11/08 at 101 AAA 23,132,790
Bonds, Series 1998B, 5.000%, 11/15/25
60,000 E-470 Public Highway Authority (Colorado), Senior Revenue 9/10 at 31 13/32 AAA 9,421,800
Bonds, Series 2000A and Series 2000B, 0.000%, 9/01/28 (WI)
90 El Paso County, Colorado, Local Single Family Mortgage 9/00 at 102 AAA 91,580
Revenue Bonds, 1990 Series A, 7.850%, 9/01/09
(Alternative Minimum Tax)
455 Jefferson County, Colorado, Single Family Revenue Refunding 4/01 at 103 AAA 472,213
Bonds, Series 1991A, 8.875%, 10/01/13
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 3.0%
10,500 District of Columbia, University Revenue Bonds (The George 9/09 at 101 AAA 10,381,350
Washington University Issue), Series 1999A, 5.750%, 9/15/20
17,000 Washington Convention Center Authority (Washington, D.C.), 10/08 at 101 AAA 14,862,420
Senior Lien Dedicated Tax Revenue Bonds, Series 1998,
5.000%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.6%
8,440 Florida Housing Finance Agency, Single Family Mortgage 7/04 at 102 AAA 8,727,466
Revenue Bonds, 1994 Series B, 6.650%, 7/01/26
(Alternative Minimum Tax)
Miami-Dade County, Florida, Subordinate Special Obligation
Bonds, Series 1997B:
15,000 0.000%, 10/01/33 4/08 at 25 1/16 AAA 1,865,250
10,885 0.000%, 10/01/34 4/08 at 23 11/16 AAA 1,271,695
16,340 0.000%, 10/01/35 4/08 at 22 13/32 AAA 1,790,537
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 2.7%
6,130 Department of Budget and Finance of the State of Hawaii, 12/02 at 102 AAA 6,263,144
Special Purpose Revenue Bonds (Hawaii Electric Company,
Inc. and Subsidiaries Projects), Series 1992, 6.550%, 12/01/22
(Alternative Minimum Tax)
16,180 Department of Budget and Finance of the State of Hawaii, 5/06 at 101 AAA 16,279,345
Special Purpose Revenue Bonds (Hawaii Electric Company,
Inc. and Subsidiaries Projects), Series 1996A, 6.200%, 5/01/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 12.7%
5,000 Central Lake County Joint Action Water Agency, Lake County, 5/01 at 102 AAA 5,221,600
Illinois, Water Revenue Bonds, Series 1991,
7.000%, 5/01/20 (Pre-refunded to 5/01/01)
10,000 City of Chicago, General Obligation Bonds, Project 7/05 at 102 AAA 10,626,100
Series 1995, 6.125%, 1/01/16 (Pre-refunded to 7/01/05)
24,925 City of Chicago (Illinois), Chicago Midway Airport, Revenue 1/09 at 101 AAA 20,755,795
Bonds, Series 1998B, 5.000%, 1/01/35
6,000 City of Chicago (Illinois), Chicago-O'Hare International Airport, 1/05 at 102 AAA 6,260,520
General Airport Second Lien Revenue Refunding Bonds,
1994 Series A, 6.375%, 1/01/12
9,500 City of Chicago (Illinois), O'Hare International Airport, General 1/10 at 101 AAA 9,224,690
Airport Second Lien Revenue Refunding Bonds,
1999 Series, 5.500%, 1/01/15 (Alternative Minimum Tax)
6,280 Public Building Commission of Chicago (Illinois), Building 7/00 at 100 AAA 6,446,357
Revenue Bonds, Series A of 1990 (Board of Education of the
City of Chicago), 7.125%, 1/01/15
6,825 Public Building Commission of Chicago (Illinois), Building 12/03 at 102 AAA 7,108,784
Revenue Bonds, Series A of 1993 (Board of Education of the
City of Chicago), 5.750%, 12/01/18 (Pre-refunded to 12/01/03)
8,165 Illinois Development Finance Authority, Revenue Bonds 8/09 at 101 AAA 7,620,395
(Bradley University Project), Series 1999, 5.500%, 8/01/29
Illinois Health Facilities Authority, Revenue Bonds, Series 1997A
(Loyola University Health System):
2,635 5.000%, 7/01/24 (Pre-refunded to 7/01/07) 7/07 at 101 AAA 2,630,415
8,875 5.000%, 7/01/24 7/07 at 101 AAA 7,495,293
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN INSURED QUALITY MUNICIPAL FUND, INC. (NQI) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (continued)
$ 25,000 Illinois Health Facilities Authority, Revenue Bonds, Series 2000 2/10 at 101 AAA $ 24,212,500
(Iowa Health System), 5.875%, 2/15/30 (WI)
165 City of Moline, Rock Island, and Urbana, Illinois, Single Family 8/00 at 102 AAA 168,399
Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities
Program), Series 1990, 8.050%, 8/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.7%
4,120 Indiana Housing Finance Authority, Single Family Mortgage Revenue 7/00 at 102 Aaa 4,212,947
Bonds (GNMA Collateralized Home Mortgage Program),
1990 Series C, 7.800%, 1/01/22 (Alternative Minimum Tax)
6,000 Jasper County, Indiana, Collateralized Pollution Control Refunding 7/01 at 102 AAA 6,253,320
Revenue Bonds (Northern Indiana Public Service Company
Project), Series 1991, 7.100%, 7/01/17
9,645 Marion County Convention and Recreational Facilities 6/01 at 102 AAA 10,084,137
Authority (Indiana), Excise Taxes Lease Rental Revenue Bonds,
Series 1991B, 7.000%, 6/01/21 (Pre-refunded to 6/01/01)
4,230 City of Rockport, Indiana, Pollution Control Revenue Refunding 3/01 at 102 AAA 4,400,173
Bonds (Indiana Michigan Power Company Project), Series B,
7.600%, 3/01/16
10,000 Hospital Authority of St. Joseph County (Indiana), Fixed Rate 8/01 at 102 AAA 10,486,000
Hospital Revenue Refunding Bonds, Series 1991A (Memorial
Hospital of South Bend Project), 7.000%, 8/15/20
(Pre-refunded to 8/15/01)
5,000 Hospital Authority of St. Joseph County (Indiana), Health System 2/08 at 101 AAA 3,884,800
Bonds, Series 1998A (Memorial Health System), 4.625%, 8/15/28
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.7%
5,305 City of Mason, Iowa, Hospital Revenue Bonds (Sisters of Mercy 8/01 at 102 AAA 5,563,513
Health Corporation), 1991 Series L, 7.000%, 8/15/21
(Pre-refunded to 8/15/01)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.2%
13,170 City of New Orleans, Louisiana, General Obligation Refunding 10/05 at 101 AAA 13,409,694
Bonds, Series 1995, 6.200%, 10/01/21
5,100 Orleans Levee District (A Political Subdivision of the State 12/05 at 103 AAA 5,222,553
of Louisiana), Public Improvement Bonds, Series 1986,
5.950%, 11/01/15
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 2.4%
8,000 Maine Health and Higher Educational Facilities Authority, 7/09 at 101 AAA 7,928,480
Revenue Bonds, Series 1999B, 6.000%, 7/01/29
12,020 Maine State Housing Authority, Mortgage Purchase Bonds, 5/01 at 102 AAA 12,347,425
1991 Series A, 7.400%, 11/15/22
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.8%
28,500 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102 AAA 24,052,290
System Revenue Bonds, 1997 Series C (Senior),
5.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.1%
15,500 Michigan State Hospital Finance Authority, Revenue and 5/08 at 101 AAA 13,561,570
Refunding Bonds (St. John Health System), Series 1998A,
5.000%, 5/15/28
4,750 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/09 at 102 AAA 4,391,707
Bonds (The Detroit Edison Company Pollution Control
Bonds Project), Collateralized Series 1999A, 5.550%, 9/01/29
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.8%
5,775 Minneapolis/St. Paul Housing Finance Board, Single Family 8/00 at 100 AAA 5,806,127
Mortgage Revenue Bonds (Minneapolis/St. Paul Family
Housing Program, Phase VI), 8.300%, 8/01/21
(Alternative Minimum Tax)
976 City of St. Louis Park, Minnesota, Single Family Residential 4/01 at 102 Aaa 997,882
Mortgage Revenue Refunding Bonds (GNMA Mortgage-Backed
Securities Program), Series 1991-A, 7.250%, 4/20/23
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 2.3%
2,545 Harrison County, Wastewater Management District (Mississippi), No Opt. Call AAA 3,244,875
Wastewater Treatment Facilities Revenue Refunding Bonds,
Series 1991A, 8.500%, 2/01/13
2,715 Harrison County, Wastewater Management District (Mississippi), No Opt. Call AAA 3,292,942
Wastewater Treatment Facilities Revenue Refunding Bonds,
Series 1991B, 7.750%, 2/01/14
3,290 Mississippi Housing Finance Corporation, Single Family Mortgage 10/00 at 101 AAA 3,359,913
Purchase Revenue Bonds, Series 1989 (GNMA Mortgage-Backed
Securities Program), 8.250%, 10/15/18 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MISSISSIPPI (continued)
$ 8,700 Mississippi Home Corporation, Single Family Mortgage Revenue 6/06 at 105 Aaa $ 9,421,491
Bonds, Series 1996C, 7.600%, 6/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.6%
5,000 St. Louis Municipal Finance Corporation, City Justice Center, 2/06 at 102 AAA 5,078,700
Leasehold Revenue Improvement Bonds, Series 1996A (City of
St. Louis, Missouri, Lessee), 6.000%, 2/15/19
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.0%
3,270 Clark County, Nevada, Industrial Development Revenue Bonds 6/00 at 102 AAA 3,343,575
(Nevada Power Company Project), Series 1990,
7.800%, 6/01/20 (Alternative Minimum Tax)
13,185 Washoe County, Nevada, Hospital Refunding Revenue Bonds 6/04 at 102 AAA 13,220,731
(Washoe Medical Center, Inc. Project), Series 1994A,
6.000%, 6/01/19
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.5%
3,750 New Jersey Health Care Facilities Financing Authority, Revenue 7/04 at 102 AAA 3,984,638
Bonds, Monmouth Medical Center Issue, Series C,
6.250%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.5%
5,000 City of Albuquerque, New Mexico, Airport Revenue Bonds, 7/00 at 105 AAA 5,265,400
Series 1995A, 6.600%, 7/01/16 (Alternative Minimum Tax)
6,000 City of Farmington, New Mexico, Pollution Control Refunding 4/01 at 102 A+ 6,220,740
Revenue Bonds (Southern California Edison Company, Four
Corners Project), 1991 Series A, 7.200%, 4/01/21
3,850 New Mexico Mortgage Finance Authority, Multifamily Housing 1/01 at 102 AAA 3,966,078
Refunding Revenue Bonds, 1990 Series A Tax-Exempt
(Fannie Mae Collateralized), 7.625%, 1/01/24
5,750 City of Santa Fe, New Mexico, Revenue Bonds, Series 1994A, 6/04 at 100 AAA 6,017,375
6.300%, 6/01/24 (Pre-refunded to 6/01/04)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 11.8%
The City of New York, General Obligation Bonds, Fiscal 1991
Series A:
2,000 8.000%, 3/15/11 9/00 at 101 1/2 AAA 2,055,360
6,000 7.250%, 3/15/19 9/00 at 101 1/2 AAA 6,145,200
17,700 New York City Housing Development Corporation, Multi-Unit 6/01 at 102 AAA 18,442,692
Mortgage Refunding Bonds (FHA-Insured Mortgage Loans),
1991 Series A, 7.250%, 6/01/19
10,335 New York City, New York, Municipal Water Finance Authority, 6/05 at 101 AAA 10,874,694
Water and Sewer System Revenue Bonds, Fiscal
1996 Series A, 6.000%, 6/15/25 (Pre-refunded to 6/15/05)
5,250 Dormitory Authority of the State of New York, Lease Revenue 7/09 at 101 AAA 4,955,370
Bonds (State University Dormitory Facilities Issue),
Series 1999C, 5.500%, 7/01/29
11,760 Dormitory Authority of the State of New York, Court Facilities 5/10 at 101 AAA 11,504,573
Lease Revenue Bonds (The City of New York Issue),
Series 1999, 5.750%, 5/15/30
10,000 Dormitory Authority of the State of New York, The New York 8/09 at 101 AAA 9,364,100
Hospital Medical Center of Queens, FHA-Insured Mortgage
Hospital Revenue Bonds, Series 1999, 5.600%, 2/15/39
7,000 New York State Energy Research and Development Authority, 7/05 at 102 A+ 7,037,590
Facilities Refunding Revenue Bonds, Series 1995A
(Consolidated Edison Company of New York, Inc. Project),
6.100%, 8/15/20
11,950 New York State Finance Agency, Housing Project Mortgage 5/06 at 102 AAA 12,074,041
Revenue Bonds, 1996 Series A Refunding, 6.125%, 11/01/20
4,200 State of New York Mortgage Agency, Homeowner Mortgage 10/09 at 100 AAA 3,991,134
Revenue Bonds, Series 82, 5.550%, 10/01/19
(Alternative Minimum Tax)
12,000 New York State Medical Care Facilities Finance Agency, 2/05 at 102 AAA 13,125,840
New York Hospital, FHA-Insured Mortgage Revenue Bonds,
1994 Series A, 6.900%, 8/15/34 (Pre-refunded to 2/15/05)
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.3%
13,580 North Carolina Medical Care Commission, Hospital Revenue 12/08 at 101 AAA 10,919,135
Bonds (Pitt County Memorial Hospital), Series 1998A,
4.750%, 12/01/28
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN INSURED QUALITY MUNICIPAL FUND, INC. (NQI) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NORTH DAKOTA - 2.5%
$ 21,075 Mercer County, North Dakota, Pollution Control Refunding 1/05 at 102 AAA $ 21,390,282
Revenue Bonds, Second 1995 Series (Basin Electric Power
Cooperative - Antelope Valley Unit 1 and Common Facilities),
6.050%, 1/01/19
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.3%
895 Oklahoma Housing Finance Agency, Single Family Mortgage 3/01 at 102 AAA 914,386
Revenue Bonds, 1991 Series A, 7.200%, 3/01/11
9,900 Pottawatomie County Development Authority, Water Revenue 7/00 at 102 AAA 10,147,797
Bonds, Series 1990 (North Deer Creek Reservoir Project),
7.375%, 7/01/26 (Pre-refunded to 7/01/00)
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.5%
5,000 Oregon Health Sciences University, Insured Revenue Bonds, 7/06 at 102 AAA 4,459,250
1995 Series B, 5.250%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.6%
7,000 County of Allegheny, Pennsylvania, Airport Revenue Refunding 1/08 at 101 AAA 6,494,250
Bonds, Series 1997A (Pittsburgh International Airport),
5.250%, 1/01/16 (Alternative Minimum Tax)
7,250 Lehigh County Industrial Development Authority, Pollution 8/05 at 102 AAA 7,315,830
Control Revenue Refunding Bonds, 1995 Series A (Pennsylvania
Power and Light Company Project), 6.150%, 8/01/29
5,650 Commonwealth of Pennsylvania, General Obligation Bonds, 8/08 at 101 AAA 5,094,492
Second Series of 1998, 5.000%, 8/01/18
14,190 City of Philadelphia, Pennsylvania, Water and Sewer Revenue 8/01 at 102 AAA 14,876,938
Bonds, Sixteenth Series, 7.000%, 8/01/21
(Pre-refunded to 8/01/01)
5,000 Health Care Facilities Authority of Sayre (Pennsylvania), 3/01 at 102 AAA 5,182,950
Revenue Bonds, Guthrie Healthcare System,
Series 1991A, 7.100%, 3/01/17
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.2%
12,500 Rhode Island Depositors Economic Protection Corporation, 8/01 at 102 AAA 13,173,875
Special Obligation Bonds, 1991 Series A, 7.500%, 8/01/14
(Pre-refunded to 8/01/01)
5,050 Rhode Island Port Authority and Economic Development 7/04 at 102 AAA 5,185,997
Corporation, Airport Revenue Bonds, 1994 Series A,
6.625%, 7/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.6%
5,170 The Health, Educational and Housing Facilities Board of the 2/03 at 102 AAA 5,205,001
County of Sullivan, Tennessee, Hospital Revenue Bonds,
Series 1993 (Holston Valley Health Care, Inc.), 5.750%, 2/15/13
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 3.7%
8,000 Abilene Health Facilities Development Corporation (Texas), 9/05 at 102 AAA 8,033,360
Hospital Revenue Refunding and Improvement Bonds
(Hendrick Medical Center Project), Series 1995C,
6.150%, 9/01/25
2,000 Cities of Dallas and Fort Worth, Texas, Dallas-Fort Worth 11/09 at 100 AAA 1,902,260
International Airport, Joint Revenue Bonds, Series 2000A,
5.750%, 11/01/30 (Alternative Minimum Tax)
2,350 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call AAA 2,449,028
Bonds, Series 1990, 7.500%, 2/15/03
5,000 Harris County Hospital District, Texas, Revenue Refunding Bonds, No Opt. Call AAA 5,596,100
Series 1990, 7.400%, 2/15/10
10,000 City of Houston, Texas, Airport System Subordinate Lien 7/08 at 100 AAA 8,539,500
Revenue Bonds, Series 1998B, 5.000%, 7/01/28
5,000 Matagorda County Navigation, District Number One (Texas), 7/00 at 102 AAA 5,007,550
Pollution Control Revenue Refunding Bonds (Central Power
and Light Company Project), Series 1995, 6.100%, 7/01/28
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.9%
755 Intermountain Power Agency (Utah), Power Supply Revenue 7/03 at 100 A+ 645,540
Refunding Bonds, 1993 Series A, 5.000%, 7/01/23
6,000 Salt Lake City, Utah, Hospital Revenue Refunding Bonds 5/00 at 100 AAA 6,643,740
(IHC Hospitals, Inc.), Series 1988A, 8.000%, 5/15/07
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 1.6%
Public Utility District No. 1 of Chelan County, Washington, Chelan
Hydro Consolidated System Revenue Bonds, Series 1998A:
8,800 5.250%, 7/01/33 (Alternative Minimum Tax) 7/08 at 102 AAA 7,675,360
1,350 5.250%, 7/01/33 (Alternative Minimum Tax) 7/08 at 102 AAA 1,172,660
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WASHINGTON (continued)
$ 5,125 Municipality of Metropolitan Seattle, Washington, Sewer Refunding 1/03 at 102 AAA $ 4,749,030
Revenue Bonds, Series Z, 5.500%, 1/01/33
------------------------------------------------------------------------------------------------------------------------------------
$ 968,086 Total Investments - (cost $847,224,093) - 100.4% 848,829,137
============= --------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.8%
6,000 District of Columbia (Washington, D.C.), General Obligation VMIG-1 6,000,000
General Fund Recovery Bonds, Series 1991B, Variable Rate
Demand Bonds, 6.100%, 6/01/03+
600 Guadalupe-Blanco River Authority (Texas), Pollution Control VMIG-1 600,000
Revenue Refunding Bonds (Central Power and Light Company
Project), Series 1995, Variable Rate Demand Bonds,
5.850%, 11/01/15+
------------------------------------------------------------------------------------------------------------------------------------
$ 6,600 Total Short-Term Investments - (cost $6,600,000) 6,600,000
============= --------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (1.2)% (10,062,644)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 845,366,493
====================================================================================================================
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, any of which ensure the timely
payment of principal and interest.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC. (NIO)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALABAMA - 6.1%
$ 3,850 Alabama Housing Finance Authority, Multifamily Housing Revenue 7/05 at 103 Aaa $ 3,968,080
Refunding Bonds (GNMA Collateralized - Royal Hills),
1995 Series F, 6.500%, 7/20/30
11,000 The Special Care Facilities Financing Authority of the City 5/05 at 102 AAA 10,832,030
of Birmingham (Alabama), Baptist Medical Centers, Revenue
Bonds, Series 1995-B (Baptist Health System, Inc.),
5.875%, 11/15/20
The Special Care Facilities Financing Authority of the City of
Birmingham (Alabama), Baptist Medical Centers, Revenue Bonds,
Series 1996-A (Baptist Health System, Inc.):
7,465 5.875%, 11/15/19 11/06 at 102 AAA 7,370,866
1,750 5.875%, 11/15/26 11/06 at 102 AAA 1,704,080
Jefferson County, Alabama, Sewer Revenue Capital Improvement
Warrants, Series 1999-A:
48,355 5.000%, 2/01/33 2/09 at 101 AAA 40,878,833
30,860 5.750%, 2/01/38 2/09 at 101 AAA 29,731,141
14,250 5.125%, 2/01/39 2/09 at 101 AAA 12,165,083
4,250 County Board of Education, Shelby County, Alabama, Capital 2/05 at 102 AAA 4,291,990
Outlay Refunding School Warrants, Series 1995, 5.875%, 2/01/17
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 2.7%
4,000 Alaska State Energy Authority, Power Revenue Bonds, 7/00 at 102 AAA 4,099,320
Second Series (Bradley Lake Hydroelectric Project),
7.250%, 7/01/21
11,500 Alaska State Housing Finance Corporation, General Mortgage 6/09 at 100 AAA 11,442,845
Revenue Bonds, 1999 Series A, 6.050%, 6/01/39
10,450 Alaska State Housing Finance Corporation, Governmental 12/05 at 102 AAA 10,176,001
Purpose Bonds, 1995 Series A, 5.875%, 12/01/30
Alaska State Housing Finance Corporation, Collateralized Bonds,
1999A First Series (Veterans Mortgage Program):
20,520 6.250%, 6/01/39 (Alternative Minimum Tax) 12/09 at 100 AAA 20,302,283
4,060 6.150%, 6/01/39 12/09 at 100 AAA 4,040,065
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.6%
9,920 The Industrial Development Authority of the County of Pima 1/02 at 103 AAA 10,515,696
(Arizona), Industrial Development Lease Obligation Refunding
Revenue Bonds, 1988 Series A (Irvington Project), 7.250%, 7/15/10
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.6%
9,440 Arkansas Development Finance Authority, Single Family 9/01 at 102 AAA 9,742,930
Mortgage Revenue Bonds, 1990 Series A, (GNMA-Backed
Securities Program), 7.400%, 9/01/23 (Alternative Minimum Tax)
1,215 City of Fort Smith, Arkansas, Water and Sewer Revenue Bonds, 10/09 at 100 AAA 1,198,330
Series 1999, 5.300%, 10/01/12
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 10.1%
6,135 California Housing Finance Agency, Housing Revenue Bonds 8/04 at 102 AAA 6,184,755
(Insured), 1994 Series C, 6.250%, 8/01/25
California Health Facilities Financing Authority, Insured Health
Facility Revenue Bonds, 1991 Series D (Catholic Healthcare
West):
9,000 6.500%, 7/01/16 (Pre-refunded to 7/01/01) 7/01 at 102 AAA 9,400,860
14,000 6.650%, 7/01/21 (Pre-refunded to 7/01/01) 7/01 at 102 AAA 14,647,360
18,655 California Housing Finance Agency, Home Mortgage Revenue 2/09 at 69 21/32 AAA 7,553,969
Bonds, 1999 Series B, 0.000%, 2/01/16
California Rural Home Mortgage Finance Authority, Single Family
Mortgage Revenue Bonds (Mortgage-Backed Securities Program),
1996 Series A:
2,685 7.550%, 11/01/26 (Alternative Minimum Tax) No Opt. Call AAA 2,856,491
2,130 7.750%, 5/01/27 (Alternative Minimum Tax) No Opt. Call AAA 2,284,851
3,100 Campbell Union School District, Santa Clara County, California, 8/04 at 102 AAA 3,332,221
1994 General Obligation Bonds, Series A, 6.250%, 8/01/19
(Pre-refunded to 8/01/04)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA (continued)
$ 8,200 Castaic Lake Water Agency (California), Refunding Revenue 8/04 at 102 AAA $ 8,475,520
Certificates of Participation (Water System Improvement
Projects), Series 1994A, 6.300%, 8/01/20
11,750 East Bay Municipal Utility District (Alameda and Contra Costa 6/03 at 102 AAA 10,424,483
Counties, California), Water System Subordinated Revenue
Refunding Bonds, Series 1993A, 5.000%, 6/01/21
5,500 Fallbrook Union High School District (San Diego County, 9/04 at 102 AAA 5,917,395
California), 1994 General Obligation Bonds, Series A,
6.250%, 9/01/19 (Pre-refunded to 9/01/04)
9,000 County of Orange, California, Refunding Recovery Bonds, 6/05 at 102 AAA 9,148,590
1995 Series A, 5.750%, 6/01/15
12,500 County of Orange, California, 1996 Recovery Certificates of 7/06 at 102 AAA 12,639,500
Participation, Series A, 6.000%, 7/01/26
Sacramento City Financing Authority (California), 1999 Capital
Improvement Revenue Bonds (Solid Waste and Redevelopment
Projects):
3,865 5.750%, 12/01/22 12/09 at 102 AAA 3,853,134
4,000 5.875%, 12/01/29 12/09 at 102 AAA 4,016,440
6,500 City of Salinas, California, Housing Facility Refunding Revenue 7/04 at 102 AAA 6,709,625
Bonds, Series 1994A (GNMA Collateralized - Villa Serra
Project), 6.600%, 7/20/30
17,500 Airports Commission, City and County of San Francisco, 5/06 at 101 AAA 16,431,450
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 13B, 5.500%, 5/01/26
(Alternative Minimum Tax)
47,615 San Joaquin Hills Transportation Corridor Agency, Toll Road 1/07 at 102 AAA 43,081,576
Refunding Revenue Bonds, Series 1997A, 5.250%, 1/15/30
11,000 Santa Ana Financing Authority, Police Administration and Housing No Opt. Call AAA 11,719,950
Facility Lease Revenue Bonds, Series 1994A, 6.250%, 7/01/24
5,500 Santa Clara County Financing Authority, Lease Revenue Bonds 11/04 at 102 AAA 6,039,770
(VMC Facility Replacement Project), 1994 Series A,
6.750%, 11/15/20 (Pre-refunded to 11/15/04)
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 2.4%
Board of Water Commissioners, City and County of Denver,
Colorado, Certificates of Participation, Series 1991:
8,390 6.625%, 11/15/11 (Pre-refunded to 11/15/01) 11/01 at 101 AAA 8,709,407
5,760 6.625%, 11/15/11 11/01 at 101 AAA 5,948,064
29,800 E-470 Public Highway Authority (Colorado), Senior Revenue Bonds, 9/10 at 102 AAA 28,700,976
Series 2000A, 5.750%, 9/01/35 (WI)
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.1%
2,500 State of Connecticut, Health and Educational Facilities Authority, 7/04 at 101 AAA 2,710,825
Revenue Bonds, Choate Rosemary Hall Issue, Series A,
7.000%, 7/01/25 (Pre-refunded to 7/01/04)
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.8%
6,000 District of Columbia, Hospital Improvement and Refunding 7/02 at 102 AAA 6,048,900
Revenue Bonds (Children's Hospital Issue), Series 1992A,
6.250%, 7/15/19
4,175 District of Columbia Housing Finance Agency, Collateralized 6/00 at 102 AAA 4,247,144
Single Family Mortgage Revenue Bonds, Series 1988C,
7.850%, 12/01/22 (Alternative Minimum Tax)
4,820 District of Columbia Housing Finance Agency, Collateralized 12/01 at 102 AAA 4,923,244
Single Family Mortgage Revenue Bonds, Series 1990B,
7.100%, 12/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 0.6%
989 Housing Finance Authority of Dade County (Florida), Single Family 12/01 at 102 AAA 1,012,687
Mortgage Revenue Refunding Bonds, 1991 Series D,
6.950%, 12/15/12
2,745 Escambia County Housing Finance Authority (Florida), 4/05 at 102 AAA 2,886,066
Single Family Mortgage Revenue Bonds (Multi-County
Program), Series 1995, 6.950%, 10/01/27
(Alternative Minimum Tax)
5,915 Florida Housing Finance Agency, Home Ownership Revenue No Opt. Call AAA 6,171,415
Refunding Bonds, 1987 Series G1, 8.595%, 11/01/17
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.3%
5,000 The Glynn-Brunswick Memorial Hospital Authority, Revenue 8/06 at 102 AAA 4,862,350
Anticipation Certificates (Southeast Georgia Health Systems
Project), Series 1996, 5.250%, 8/01/13
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC. (NIO) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HAWAII - 1.3%
$ 24,250 Department of Budget and Finance of the State of Hawaii, 5/06 at 101 AAA $ 24,398,895
Special Purpose Revenue Bonds (Hawaii Electric Company, Inc.
and Subsidiaries Project), Series 1996A, 6.200%, 5/01/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.5%
Idaho Housing Agency, Single Family Mortgage Bonds,
1994 Series B:
2,625 6.750%, 7/01/22 No Opt. Call Aa1 2,685,638
2,505 6.900%, 7/01/26 (Alternative Minimum Tax) No Opt. Call Aa1 2,588,191
3,625 Idaho Housing Agency, Single Family Mortgage Bonds, 1/05 at 102 Aaa 3,675,243
1995 Series B, 6.600%, 7/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 9.5%
4,055 Central Lake County Joint Action Water Agency, Lake County, 2/03 at 102 Aa2 4,065,340
Illinois, General Obligation Water Refunding Bonds,
Series 1992, 6.000%, 2/01/19
10,000 City of Chicago (Illinois), General Obligation Adjustable Rate 7/02 at 101 1/2 AAA 10,552,000
Bonds, Central Public Library Project, Series C of 1988,
6.850%, 1/01/17 (Pre-refunded to 7/01/02)
City of Chicago (Illinois), Chicago Midway Airport,
Revenue Bonds, Series 1998A:
30,000 5.125%, 1/01/31 (Alternative Minimum Tax) 1/09 at 101 AAA 25,468,800
12,750 5.125%, 1/01/35 (Alternative Minimum Tax) 1/09 at 101 AAA 10,686,413
10,500 City of Chicago (Illinois), Chicago Midway Airport, Revenue Bonds, 1/09 at 101 AAA 8,835,645
Series 1998B, 5.000%, 1/01/31
The County of Cook, Illinois, General Obligation Bonds, Series 1991:
18,430 6.750%, 11/01/18 (Pre-refunded to 11/01/01) 11/01 at 102 AAA 19,337,125
26,475 6.250%, 11/01/21 (Pre-refunded to 11/01/01) 11/01 at 102 AAA 27,587,480
Board of Governors of State Colleges and Universities, Eastern
Illinois University, Auxiliary Facilities System Revenue Bonds,
Series 1989:
12,355 0.000%, 10/01/09 10/04 at 74 1/16 AAA 7,164,788
16,470 0.000%, 4/01/16 (Pre-refunded to 10/01/04) 10/04 at 47 1/16 AAA 6,158,298
1,585 Illinois Housing Development Authority, Residential Mortgage 8/00 at 101 Aa1 1,594,225
Revenue Bonds, 1989 Series A, 7.400%, 2/01/20
(Alternative Minimum Tax)
10,000 Illinois Development Finance Authority, Revenue Bonds, 5/08 at 101 AAA 9,344,200
Series 1998A (Provena Health), 5.500%, 5/15/21
20,000 Illinois Health Facilities Authority, Brokaw-Mennonite 8/02 at 102 AAA 20,248,800
Association, Revenue Refunding Bonds, Series 1992 (BroMenn
Healthcare), 6.250%, 8/15/18
3,615 State of Illinois, Civic Center Bonds (Dedicated Tax Revenue), 12/00 at 102 AAA 3,739,898
Series 1990-A, 7.000%, 12/15/10
State of Illinois Department of Central Management Services,
Illinois Student Assistance Commission:
2,965 6.875%, 7/01/07 (Pre-refunded to 7/01/02) 7/02 at 102 AAA 3,143,523
6,085 6.950%, 7/01/13 (Pre-refunded to 7/01/02) 7/02 at 102 AAA 6,460,749
4,560 County of Macon, Illinois, Revenue Bonds, Millikin University, 10/05 at 100 AAA 4,822,154
Series 1995, 6.250%, 10/01/16
5,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, 6/04 at 102 AAA 5,392,900
McHenry and Will Counties, Illinois, General Obligation
Bonds, Series 1994D, 6.750%, 6/01/25 (Pre-refunded to 6/01/04)
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.0%
5,000 Brownsburg School Building Corporation (Hendricks County, 2/10 at 101 AAA 4,749,850
Indiana), First Mortgage Bonds, Series 1999, 5.550%, 2/01/24
10,500 Hospital Authority of the City of Fort Wayne, Indiana, Revenue 11/02 at 102 A+*** 11,063,115
Bonds, Series 1992 (Parkview Memorial Hospital, Inc.
Project), 6.400%, 11/15/22 (Pre-refunded to 11/15/02)
1,065 Indiana Housing Finance Authority, Single Family Mortgage 7/00 at 102 Aaa 1,088,813
Revenue Bonds (GNMA Collateralized Home Mortgage
Program), 1990 Series B, 7.800%, 1/01/22
(Alternative Minimum Tax)
380 Indiana Housing Finance Authority, Single Family Mortgage 7/00 at 102 Aaa 388,542
Revenue Bonds (GNMA Collateralized Home Mortgage
Program), 1990 Series D, 7.800%, 1/01/22
(Alternative Minimum Tax)
20,000 The Indianapolis (Indiana), Local Public Improvement No Opt. Call AAA 3,603,000
Bond Bank, Series 1999E, 0.000%, 2/01/28
12,250 City of Lawrenceburg, Indiana, Pollution Control Revenue 4/02 at 102 AAA 12,866,788
Refunding Bonds (Indiana Michigan Power Company
Project), Series D, 7.000%, 4/01/15
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INDIANA (continued)
$ 12,950 Marion County Convention and Recreational Facilities Authority 6/01 at 102 AAA $ 13,539,614
(Indiana), Excise Tax Lease Rental Revenue Bonds,
Series 1991B, 7.000%, 6/01/21 (Pre-refunded to 6/01/01)
9,545 New Prairie School Building Corporation (LaPonte and 7/04 at 102 AAA 10,489,955
St. Joseph Counties, Indiana), First Mortgage, Series 1994,
7.200%, 7/15/21 (Pre-refunded to 7/15/04)
14,000 Holy Cross Health System Corporation, Indiana Hospital Revenue 12/01 at 102 AAA 14,747,040
Bond Issues, Hospital Authority of Marshall County,
Series 1991 (Holy Cross Parkview Hospital, Inc.),
7.000%, 12/01/12 (Pre-refunded to 12/01/01)
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.3%
5,000 City of Davenport, Iowa, Hospital Facility Revenue Bonds 7/02 at 102 AAA 5,235,200
(Mercy Hospital Project), Series 1992, 6.250%, 7/01/22
(Pre-refunded to 7/01/02)
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.3%
1,425 Sedgwick County and Shawnee County, Kansas, GNMA 6/01 at 103 Aaa 1,464,230
Collateralized Mortgage Revenue Bonds, Senior 1991 Series A,
7.300%, 12/01/12
5,000 University of Kansas Hospital Authority, Health Facilities 9/09 at 100 AAA 4,770,600
Revenue Bonds (KU Health System), Series 1999A,
5.650%, 9/01/29
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.3%
10,000 City of Danville, Kentucky, Multi-City Lease Revenue Bonds 3/02 at 102 AAA 10,535,500
(Louisville and Jefferson County Metropolitan Sewer District
Sewer and Drainage System Revenue Project), Series 1991-G,
6.800%, 3/01/19 (Pre-refunded to 3/01/02)
53,000 Jefferson County, Kentucky, Capital Projects Corporation, 2/01 at 24 11/16 AAA 12,608,700
Lease Revenue Bonds, Series 1989B, 0.000%, 8/15/19
(Pre-refunded to 2/15/01)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.5%
8,000 Parish of De Soto, State of Louisiana Pollution Control Revenue 9/09 at 102 AAA 7,792,000
Refunding Bonds (Cleco Utility Group Inc. Project), Series 1999,
5.875%, 9/01/29
15,650 Louisiana Public Facilities Authority, Hospital Revenue Refunding 5/02 at 102 AAA 16,538,451
Bonds (Southern Baptist Hospital Project), Series 1992,
6.800%, 5/15/12 (Pre-refunded to 5/15/02)
5,340 Public Improvement Bonds, Issue of 1992, City of New Orleans, 9/02 at 100 AAA 5,596,213
Louisiana, 7.000%, 9/01/19 (Pre-refunded to 9/01/02)
8,700 Orleans Levee District (A Political Subdivision of the State 12/05 at 103 AAA 8,909,061
of Louisiana), Public Improvement Bonds, Series 1986,
5.950%, 11/01/15
3,000 Parish of St. Charles, State of Louisiana, Pollution Control 6/01 at 102 AAA 3,133,200
Revenue Bonds (Louisiana Power and Light Company Project),
Series 1991, 7.500%, 6/01/21 (Alternative Minimum Tax)
3,500 Hospital Service District No. 1 of the Parish of Tangipahoa, 2/04 at 102 AAA 3,535,735
State of Louisiana, Hospital Revenue Bonds (Series 1994),
6.250%, 2/01/24
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.5%
8,520 Maine Health and Higher Educational Facilities Authority, 7/01 at 102 AAA 8,631,016
Revenue Bonds, Series 1991, 6.375%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 6.9%
6,000 Massachusetts Health and Educational Facilities Authority, 7/01 at 102 AAA 6,270,780
Revenue Bonds, Brigham and Women's Hospital Issue,
Series D, 6.750%, 7/01/24 (Pre-refunded to 7/01/01)
10,500 Massachusetts Health and Educational Facilities Authority, 7/02 at 102 AAA 10,810,170
Revenue Bonds, New England Medical Center Hospitals Issue,
Series F, 6.625%, 7/01/25
6,745 Massachusetts Housing Finance Agency, Housing Development 6/08 at 101 AAA 6,221,790
Bonds, 1998 Series A, 5.375%, 6/01/16
(Alternative Minimum Tax)
8,400 Massachusetts Health and Educational Facilities Authority, 10/05 at 102 AAA 8,588,580
Revenue Bonds, Berkshire Health Systems Issue, Series D,
6.000%, 10/01/13
6,685 Massachusetts Health and Educational Facilities Authority, 7/08 at 102 AAA 5,853,453
Revenue Bonds, Caregroup Issue, Series A, 5.000%, 7/01/18
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC. (NIO) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MASSACHUSETTS (continued)
$ 20,000 Massachusetts Health and Educational Facilities Authority, 7/08 at 101 AAA $ 16,650,800
Revenue Bonds, Boston Medical Center Issue, Series A,
5.000%, 7/01/29
Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, South Shore Hospital Issue, Series D:
2,890 6.500%, 7/01/22 (Pre-refunded to 7/01/02) 7/02 at 102 AAA 3,040,685
2,960 6.500%, 7/01/22 7/02 at 102 AAA 3,033,911
12,990 Massachusetts Housing Finance Agency, Single Family Housing 6/01 at 102 Aa 13,243,695
Revenue Bonds, Series 17, 7.150%, 12/01/24
(Alternative Minimum Tax)
4,865 Massachusetts Housing Finance Agency, Housing Revenue 12/05 at 102 AAA 4,905,769
Refunding Bonds, 1995 Series A, 6.100%, 12/01/16
57,350 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102 AAA 48,399,959
System Revenue Bonds, 1997 Series C (Senior), 5.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 7.3%
2,750 Cheboygan Area Schools, Counties of Cheboygan and Presque 5/07 at 100 AAA 2,758,333
Isle, State of Michigan, 1996 School Building and State
Bonds (General Obligation - Unlimited Tax), 5.700%, 5/01/16
11,245 The Economic Development Corporation of the City of Detroit, 5/01 at 102 AAA 11,669,049
Resource Recovery Revenue Bonds, Series 1991A,
6.875%, 5/01/09 (Alternative Minimum Tax)
20,300 City of Detroit, Michigan, Sewage Disposal System Revenue 7/01 at 102 AAA 21,156,457
Bonds, Series 1991, 6.625%, 7/01/21 (Pre-refunded to 7/01/01)
City of Detroit, Michigan, Sewage Disposal System Revenue
Bonds, Series 1999-A:
15,825 5.750%, 7/01/26 1/10 at 101 AAA 15,560,723
20,000 5.875%, 7/01/27 1/10 at 101 AAA 19,904,000
13,500 City of Detroit, Michigan, Water Supply System Revenue 7/04 at 102 AAA 11,737,035
and Revenue Refunding Bonds, Series 1993, 5.000%, 7/01/23
18,700 City of Detroit, Michigan, Water Supply System Revenue 7/07 at 101 AAA 16,162,223
Bonds (Senior Lien), Series 1997-A, 5.000%, 7/01/27
8,000 Gaylord Community Schools, Counties of Otsego and Antrim, 5/07 at 37 3/4 AAA 2,078,720
State of Michigan, 1992 School Building and Site Refunding
Bonds, 0.000%, 5/01/21 (Pre-refunded to 5/01/07)
8,500 County of Jackson Hospital Finance Authority, Hospital Revenue 6/03 at 102 AAA 7,596,365
Refunding Bonds (W.A. Foote Memorial Hospital, Jackson
Michigan), Series 1993A, 5.250%, 6/01/23
1,515 Michigan State Housing Development Authority, Rental Housing 1/02 at 102 AA- 1,579,509
Revenue Bonds, 1991 Series A, 7.150%, 4/01/10
(Alternative Minimum Tax)
10,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue 12/01 at 102 AAA 10,459,100
Bonds (The Detroit Edison Company Pollution Control Bonds
Project), Collateralized Series 1991DD, 6.875%, 12/01/21
27,000 Okemos Public School, County of Ingham, State of Michigan, 5/06 at 34 17/32 AAA 6,787,260
1991 School Building and Site Bonds, Series I,
0.000%, 5/01/21 (Pre-refunded to 5/01/06)
6,125 Western Townships Utilities Authority, Sewage Disposal 1/02 at 100 AAA 6,249,093
System Refunding Bonds, Series 1991, 6.500%, 1/01/19
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.6%
5,430 Minnesota Housing Finance Agency, Single Family Mortgage 1/04 at 102 AA 5,562,818
Bonds, 1994 Series M, 6.700%, 7/01/26
(Alternative Minimum Tax)
4,785 Minnesota Housing Finance Agency, Single Family Mortgage 7/02 at 102 AA+ 4,876,202
Bonds, 1992 Series E, 6.850%, 1/01/24
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.2%
3,920 Missouri Housing Development Commission, Single Family 1/02 at 102 AAA 4,017,530
Mortgage Revenue Bonds (GNMA Mortgage-Backed
Securities Program), 1991 Series C, 6.900%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 1.5%
26,000 City of Forsyth, Rosebud County, Montana, Pollution Control 3/02 at 102 AAA 27,138,540
Revenue Refunding Bonds (Puget Sound Power and Light
Company Colstrip Project), Series 1992, 6.800%, 3/01/22
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEVADA - 2.7%
$ 29,775 Clark County, Nevada, Industrial Development Revenue Bonds 6/00 at 102 AAA $ 30,444,938
(Nevada Power Company Project), Series 1990, 7.800%, 6/01/20
(Alternative Minimum Tax)
11,000 Clark County, Nevada, Las Vegas-McCarran International 7/02 at 102 AAA 11,468,270
Airport Passenger Facility Charge Revenue Bonds,
1992 Series A, 6.000%, 7/01/22 (Pre-refunded to 7/01/02)
4,510 Nevada Housing Division, Single Family Program Bonds, 4/04 at 102 Aa2 4,575,575
1994 Issue B-1 Senior Bonds, 6.700%, 10/01/17
3,485 Nevada Housing Division, Single Family Mortgage Bonds, 4/04 at 102 Aa2 3,572,892
1994 Series B-2 Senior Bonds, 6.950%, 10/01/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.3%
4,950 New Hampshire Higher Educational and Health Facilities 1/03 at 102 AAA 5,007,074
Authority, Hospital Revenue Bonds, Lakes Region Hospital
Association Issue, Series 1993, 5.750%, 1/01/11
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 4.7%
11,095 Long Island Power Authority, Electric System General Revenue 6/08 at 101 AAA 9,970,300
Bonds, Series 1998A, 5.000%, 12/01/18
8,685 Long Island Power Authority, Electric System General Revenue 6/08 at 101 AAA 8,117,435
Bonds, Series 1998A, 5.300%, 12/01/19
8,265 The City of New York, General Obligation Bonds, Fiscal , 8/02 at 101 1/2 AAA 8,635,603
1992 Series C, Fixed Rate Bonds, Subseries C-1
6.250%, 8/01/10 (Pre-refunded to 8/01/02)
10,000 The City of New York, General Obligation Bonds, 8/08 at 101 AAA 8,791,800
Fiscal 1998 Series H, 5.125%, 8/01/25
10,000 New York City (New York), Municipal Water Finance Authority, 6/06 at 101 AAA 9,807,100
Water and Sewer System Revenue Bonds, Fiscal 1996 Series B,
5.750%, 6/15/26
Dormitory Authority of the State of New York, City University
System Consolidated Third General Resolution Revenue Bonds, 1994
Series 2:
3,000 6.250%, 7/01/19 (Pre-refunded to 7/01/04) 7/04 at 100 AAA 3,144,660
6,400 6.750%, 7/01/24 (Pre-refunded to 7/01/04) 7/04 at 102 AAA 6,929,728
9,000 Dormitory Authority of the State of New York, The New York 8/09 at 101 AAA 8,771,490
Hospital Medical Center of Queens, FHA-Insured Mortgage
Hospital Revenue Bonds, Series 1999, 5.250%, 8/01/19
5,000 New York State Urban Development Corporation, 1/07 at 102 AAA 4,856,150
Correctional Capital Facilities Revenue Bonds,
Series 7, 5.700%, 1/01/27
15,600 Port Authority of New York and New Jersey, Consolidated 1/05 at 101 AAA 16,248,960
Revenue Bonds, Ninety-Seventh Series, 6.650%, 1/15/23
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.6%
45,000 City of Charlotte, North Carolina, Certificates of Participation, 12/01 at 102 AAA 47,266,200
Series 1991 (Convention Facility Project), 6.750%, 12/01/21
(Pre-refunded to 12/01/01)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.0%
12,550 City of Cleveland, Ohio, Waterworks Improvement First Mortgage 1/02 at 102 AAA 13,119,143
Revenue Bonds, Series F, 1992A, 6.500%, 1/01/21
(Pre-refunded to 1/01/02)
9,000 County of Lucas, Ohio, Hospital Improvement Revenue Bonds, 8/02 at 102 AAA 9,418,410
Series 1992 (St. Vincent Medical Center), 6.625%, 8/15/22
21,100 County of Lucas, Ohio, Hospital Revenue Bonds, Series 1999 11/09 at 101 AAA 18,893,151
(ProMedica Healthcare Obligated Group), 5.375%, 11/15/39
8,615 Ohio Housing Finance Agency, Residential Mortgage Revenue 3/05 at 102 Aaa 8,801,256
Bonds (GNMA Mortgage-Backed Securities Program),
1995 Series A-2, 6.625%, 3/01/26 (Alternative Minimum Tax)
13,750 Ohio Air Quality Development Authority, Air Quality Development 10/04 at 102 AAA 14,017,163
Revenue Refunding Bonds (JMG Funding Limited Partnership
Project), Series 1994, 6.375%, 1/01/29 (Alternative Minimum Tax)
8,000 State of Ohio, Ohio Air Quality Development Authority, 10/04 at 102 AAA 8,155,440
Air Quality Development Revenue Refunding Bonds (JMG
Funding, Limited Partnership Project), Series 1994,
6.375%, 4/01/29 (Alternative Minimum Tax)
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC. (NIO) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OKLAHOMA - 1.6%
$ 450 Oklahoma Housing Finance Agency, Single Family Mortgage 3/01 at 102 AAA $ 459,171
Revenue Bonds, 1991 Series A, 7.150%, 3/01/07
26,940 Oklahoma Housing Finance Agency, GNMA Collateralized No Opt. Call AAA 28,455,644
Single Family Mortgage Revenue Bonds, Series 1987A,
8.000%, 8/01/18 (Alternative Minimum Tax)
1,040 Tulsa County Home Finance Authority, GNMA Collateralized 12/01 at 102 AAA 1,061,611
Mortgage Revenue Bonds, Series 1991C, 7.100%, 6/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.3%
4,600 State of Oregon, Housing and Community Services Department, 7/05 at 102 Aa2 4,737,678
Mortgage Revenue Bonds (Single Family Mortgage Program),
1995 Series A, 6.450%, 7/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 5.4%
14,700 County of Allegheny, Pennsylvania, Airport Revenue Bonds, 1/02 at 102 AAA 15,002,232
Series 1992A and 1992B (Greater Pittsburgh International
Airport), 6.625%, 1/01/22 (Alternative Minimum Tax)
7,000 Beaver County (Pennsylvania), Industrial Development Authority, 9/01 at 102 AAA 7,320,740
Pollution Control Revenue Refunding Bonds, 1991 Series A,
Pennsylvania Power Company, Mansfield Project,
7.150%, 9/01/21
24,800 Butler County Hospital Authority (Butler County, Pennsylvania), 6/01 at 102 AAA 25,923,936
Hospital Revenue Bonds, Series 1991A (North Hills Passavant
Hospital), 7.000%, 6/01/22 (Pre-refunded to 6/01/01)
Delaware County Industrial Development Authority, Pollution
Control Revenue Refunding Bonds, 1991 Series A (Philadelphia
Electric Company Project):
5,000 7.375%, 4/01/21 4/01 at 102 A 5,180,300
5,000 7.375%, 4/01/21 4/01 at 102 AAA 5,200,950
10,000 The Harrisburg Authority (Dauphin County, Pennsylvania), 6/01 at 101 AAA 10,321,700
Commonwealth of Pennsylvania Lease Bonds, Series of 1991,
6.625%, 6/01/13 (Pre-refunded to 6/01/01)
4,000 Lehigh County General Purpose Authority (Pennsylvania), 7/08 at 101 Aaa 3,353,840
Hospital Revenue Bonds (Lehigh Valley Health Network),
Series C of 1998, 5.000%, 7/01/28
7,120 Lehigh County, Pennsylvania, General Purpose Authority, 7/04 at 102 AAA 7,573,829
Hospital Revenue Bonds (Lehigh Valley Hospital, Inc.),
Series A of 1994, 6.250%, 7/01/22 (Pre-refunded to 7/01/04)
8,950 Montgomery County Industrial Development Authority, 6/02 at 102 AAA 9,335,387
Pollution Control Revenue Refunding Bonds, 1992 Series A
(Philadelphia Electric Company Project), 6.625%, 6/01/22
7,000 Harristown Development Corporation, Commonwealth 11/01 at 102 AAA 7,275,800
of Pennsylvania, Certificates of Participation, 6.250%, 5/01/16
3,000 South Fork Municipal Authority (Pennsylvania), Hospital 7/08 at 101 AAA 2,515,380
Revenue Bonds, Series B of 1998 (Conemaugh Valley Memorial
Hospital Project), 5.000%, 7/01/28
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 3.4%
38,650 The Convention Center Authority (Rhode Island), Revenue 5/01 at 102 AAA 40,260,159
Bonds, 1991 Series A, 6.700%, 5/15/20 (Pre-refunded to 5/15/01)
2,195 Providence Housing Development Corporation, Rhode Island, 7/04 at 102 AAA 2,271,803
Mortgage Revenue Refunding Bonds, Series 1994A, FHA-Insured
Mortgage Loan (Barbara Jordan Apartments Project),
6.750%, 7/01/25
20,475 Rhode Island Depositors Economic Protection Corporation, 2/11 at 100 AAA 20,299,120
Special Obligation Refunding Bonds, 1992 Series B,
5.250%, 8/01/21 (Pre-refunded to 2/01/11)
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.8%
22,000 Piedmont Municipal Power Agency (South Carolina), Electric No Opt. Call AAA 10,510,485
Revenue Bonds, 1988 Refunding Series, 0.000%, 1/01/13
South Carolina Jobs-Economic Development Authority, Hospital
Facilities Revenue Bonds, Series 1995 (Oconee Memorial Hospital,
Inc.):
3,000 6.150%, 3/01/15 3/05 at 102 AAA 3,069,360
600 6.150%, 3/01/25 3/05 at 102 AAA 601,368
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.4%
7,500 Metropolitan Nashville Airport Authority (Tennessee), 7/01 at 102 AAA 7,793,250
Airport Improvement Revenue Bonds, Refunding Series 1991C,
6.600%, 7/01/15
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TEXAS - 3.4%
$ 9,500 Coastal Bend Health Facilities Development Corporation (Texas), 11/02 at 102 AAA $ 9,932,535
Incarnate Word Health Services Revenue Bonds, Series 1993-A,
6.000%, 11/15/22
Harris County, Texas, Toll Road Senior Lien Revenue Bonds,
Series 1989:
9,000 0.000%, 8/15/18 (Pre-refunded to 8/15/09) 8/09 at 53 27/32 AAA 2,928,420
39,000 0.000%, 8/15/19 (Pre-refunded to 8/15/09) 8/09 at 50 1/4 AAA 11,845,860
7,280 0.000%, 8/15/20 (Pre-refunded to 8/15/09) 8/09 at 46 29/32 AAA 2,064,244
5,085 0.000%, 8/15/21 (Pre-refunded to 8/15/09) 8/09 at 43 25/32 AAA 1,345,949
City of Houston, Texas, Water and Sewer System, Junior Lien
Revenue Refunding Bonds, Series 1991C:
880 6.375%, 12/01/17 (Pre-refunded to 12/01/01) 12/01 at 102 AAA 919,318
13,280 6.375%, 12/01/17 12/01 at 102 AAA 13,804,162
3,945 Retama Development Corporation, Special Facilities Revenue No Opt. Call AAA 5,841,598
Bonds (Retama Park Racetrack Project), Series 1993,
10.000%, 12/15/17
14,100 Texas Department of Housing and Community Affairs, 9/06 at 102 AAA 14,143,992
Single Family Mortgage Revenue Bonds, 1996 Series D,
6.250%, 9/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.2%
5,990 Utah Housing Finance Agency, Multifamily Housing Refunding 1/02 at 102 AAA 6,286,325
Bonds, 1992 Issue A (FHA-Insured Mortgage Loans),
7.400%, 7/01/24
1,615 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/04 at 102 Aaa 1,639,984
1994 Issue D (Federally Insured or Guaranteed Mortgage
Loans), 6.750%, 1/01/27 (Alternative Minimum Tax)
17,400 Weber County, Utah, Hospital Revenue Bonds, Series 1999 8/09 at 101 AAA 14,508,816
(IHC Health Services Inc.), 5.000%, 8/15/30
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.3%
5,000 Industrial Development Authority of Loudoun County, Virginia, 6/05 at 102 AAA 4,921,050
Hospital Revenue Bonds (Loudoun Hospital Center),
Series 1995, 5.800%, 6/01/20
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 2.7%
2,515 Public Utility District No. 1 of Douglas County, Washington, 9/00 at 102 AA- 2,586,074
Wells Hydro-Electric Revenue Bonds, Series of 1990,
7.800%, 9/01/18 (Alternative Minimum Tax)
4,250 Public Utility District No. 1 of Snohomish County, Washington, 1/02 at 102 AAA 4,699,395
Generation System Revenue Bonds, Series 1989,
6.650%, 1/01/16
19,750 Washington Health Care Facilities Authority, Revenue Bonds, 6/00 at 102 AAA 20,181,143
Series 1989 (Group Health Cooperative of Puget Sound,
Seattle), 7.200%, 12/01/15
12,300 Washington Health Care Facilities Authority, Revenue Bonds, 10/08 at 101 Aaa 10,275,666
Series 1998 (Children's Hospital and Regional Medical
Center), 5.000%, 10/01/28
4,100 Washington Public Power Supply System, Nuclear Project 7/02 at 102 Aaa 4,170,930
No. 1 Refunding Revenue Bonds, Series 1992A, 6.250%, 7/01/17
8,500 Washington Public Power Supply System, Nuclear Project 7/03 at 102 AAA 8,289,795
No. 3 Refunding Revenue Bonds, Series 1993B, 5.600%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.5%
10,000 The County Commission of Harrison County, West Virginia, 5/03 at 102 A 9,636,000
Solid Waste Disposal Revenue Bonds (West Penn Power
Company, Harrison Station Project), Series B, 6.300%, 5/01/23
(Alternative Minimum Tax)
4,100 West Virginia Water Development Authority, Water Development 11/01 at 102 AAA 4,302,581
Revenue Refunding Bonds (Loan Program), 1991 Series A,
7.000%, 11/01/25
10,000 West Virginia Water Development Authority, Water Development 11/09 at 102 AAA 8,600,300
Revenue Bonds (Loan Program II), 1999 Series A,
5.125%, 11/01/39
5,050 State of West Virginia, University of West Virginia Board 5/02 at 100 AAA 5,238,160
of Trustees, Dormitory Revenue Bonds (West Virginia
University Project), 1992 Series A, 6.750%, 5/01/17
(Pre-refunded to 5/01/02)
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC. (NIO) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WISCONSIN - 3.0%
$ 8,270 Wisconsin Housing and Economic Development Authority, 1/02 at 102 AAA $ 8,629,000
Housing Revenue Bonds, 1992 Series A, 6.850%, 11/01/12
8,150 Wisconsin Health and Educational Facilities Authority, Revenue 8/01 at 102 AAA 8,557,251
Bonds, Series 1991 (St. Luke's Medical Center Project),
7.100%, 8/15/19 (Pre-refunded to 8/15/01)
17,710 Wisconsin Health and Educational Facilities Authority, Revenue 12/01 at 102 AAA 18,598,510
Bonds, Series 1991-B (Novus Health Group),
6.750%, 12/15/20 (Pre-refunded to 12/15/01)
5,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/09 at 101 Aaa 4,576,250
Bonds, Series 1999 (Mercy Health System Corporation),
5.500%, 8/15/25
15,000 Wisconsin Health and Educational Facilities Authority, 2/07 at 102 AAA 14,185,200
Revenue Bonds, Series 1997 (Marshfield Clinic Project),
5.750%, 2/15/27
------------------------------------------------------------------------------------------------------------------------------------
$ 2,000,839 Total Investments - (cost $1,790,127,675) - 99.3% 1,816,193,057
============= --------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.7% 13,300,881
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,829,493,938
====================================================================================================================
All of the bonds in the portfolio are either covered by
Original Issue Insurance, Secondary Market Insurance or
Portfolio Insurance, or are backed by an escrow or trust
containing sufficient U.S. Government or U.S. Government
agency securities, any of which ensure the timely payment of
principal and interest.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN PREMIER INSURED MUNICIPAL INCOME FUND, INC. (NIF)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALABAMA - 1.3%
$ 2,250 BMC Special Care Facilities Financing Authority of the City 1/02 at 100 AAA $2,284,020
of Montgomery, Revenue Bonds, Series 1992-A (Baptist Medical
Center), 5.750%, 1/01/22 (Pre-refunded to 1/01/02)
3,000 BMC Special Care Facilities Financing Authority of the City 12/02 at 102 AAA 3,167,640
of Montgomery, Revenue Bonds, Series 1992-B (Baptist
Medical Center), 6.700%, 12/01/10
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.3%
5,555 Sebastian County (Arkansas), Community Junior College District, 4/07 at 101 Aaa 5,513,338
General Obligation Refunding and Improvement Bonds,
Series 1997, 5.600%, 4/01/17
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 23.9%
6,750 ABAG Finance Authority for Nonprofit Corporations (California), 12/09 at 101 AAA 6,857,393
Certificates of Participation (Children's Hospital Medical Center of
Northern California), Series 1999, 5.875%, 12/01/19
10,000 ABAG Finance Authority for Nonprofit Corporations, Insured 12/09 at 101 AAA 10,128,500
Certificates of Participation (Children's Hospital Medical Center
of Northern California), Series 1999, 6.000%, 12/01/29
9,180 Antioch Area Public Facilities Financing Agency, Community 8/09 at 101 AAA 9,116,199
Facilities District No. 1989-1, Special Tax Bonds, Series 1999
(Contra Costa County, California), 5.700%, 8/01/22
5,000 State Public Works Board of the State of California, Lease 12/07 at 102 AAA 4,818,000
Revenue Refunding Bonds (The Regents of the University
of California Projects), 1997 Series A, 5.375%, 12/01/19
930 Housing Authority of the County of Kern, Guaranteed No Opt. Call AAA 997,472
Tax-Exempt Mortgage Obligations, 1994 Series A, Subseries I,
7.150%, 12/30/24 (Alternative Minimum Tax)
575 Housing Authority of the County of Kern, Guaranteed Tax-Exempt No Opt. Call AAA 610,282
Mortgage Obligations, 1994 Series A, Subseries III,
7.450%, 6/30/25 (Alternative Minimum Tax)
5,875 La Verne - Grand Terrace Housing Finance Agency, Single No Opt. Call AAA 8,108,969
Family Residential Mortgage Revenue Bonds, 1984 Series A,
10.250%, 7/01/17
5,840 Lancaster Redevelopment Agency, Lancaster Residential 8/01 at 102 AAA 5,956,158
Redevelopment Project Area, Tax Allocation Refunding Bonds,
Issue of 1992, 6.100%, 8/01/19
11,080 City of Lodi, California, Electric System Revenue Certificates 1/09 at 40 23/32 AAA 2,530,672
of Participation, 1999 Series A, 0.000%, 1/15/24
5,040 Northern California Power Agency, Hydroelectric Project No Opt. Call AAA 6,023,405
Number One, Revenue Bonds, 1992 Refunding Series A,
10.000%, 7/01/04
5,000 Ontario Redevelopment Financing Authority (San Bernardino No Opt. Call AAA 6,064,650
County, California), 1995 Revenue Refunding Bonds (Ontario
Redevelopment Project No.1), 7.400%, 8/01/25
8,880 City of Pomona, California, Single Family Mortgage Revenue No Opt. Call AAA 10,572,706
Refunding Bonds (GNMA and FHLMC Mortgage-Backed
Securities), Series 1990B, 7.500%, 8/01/23
10,305 City of San Bernardino, California, Single Family Mortgage No Opt. Call AAA 12,021,195
Revenue Refunding Bonds (GNMA Mortgage-Backed Securities),
Series 1990A, 7.500%, 5/01/23
14,755 County of San Bernardino, California, Single Family No Opt. Call AAA 17,916,554
Mortgage Revenue Bonds (GNMA Mortgage-Backed
Securities), 1988 Series A, 8.300%, 9/01/14
(Alternative Minimum Tax)
2,000 City of Santa Barbara, California, Certificates of Participation 4/02 at 102 AAA 2,089,840
(1992 Water System Improvement Project and Refunding),
6.700%, 4/01/27
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 1.6%
6,000 E-470 Public Highway Authority (Colorado), Senior Revenue 9/10 at 102 AAA 5,813,640
Bonds, Series 2000A and Series 2000B, 5.750%, 9/01/29 (WI)
1,225 Summit School District RE-1, Summit County, Colorado, General 12/04 at 100 AAA 1,311,240
Obligation Improvement Bonds, Series 1994,
6.700%, 12/01/14 (Pre-refunded to 12/01/04)
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN PREMIER INSURED MUNICIPAL INCOME FUND, INC. (NIF) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FLORIDA - 7.6%
Miami-Dade County, Florida, Subordinate Special Obligation Bonds,
Series 1997B:
$ 10,000 0.000%, 10/01/18 4/08 at 58 19/32 AAA $ 3,296,200
13,455 0.000%, 10/01/22 4/08 at 46 13/16 AAA 3,373,572
24,385 0.000%, 10/01/23 4/08 at 44 1/4 AAA 5,735,352
30,000 0.000%, 10/01/26 4/08 at 37 5/16 AAA 5,817,300
50,500 0.000%, 10/01/30 4/08 at 29 11/16 AAA 7,616,915
6,670 Polk County Industrial Development Authority, Industrial Development 9/02 at 103 AAA 7,008,503
Variable Rate Revenue Bonds, 1985 Series 2 (Winter Haven
Hospital Project), 6.250%, 9/01/15
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 7.2%
Development Authority of Burke County, Georgia, Pollution
Control Revenue Bonds (Oglethorpe Power Corporation, Vogtle
Project), Series 1992:
3,555 7.800%, 1/01/08 (Pre-refunded to 1/01/03) 1/03 at 103 AAA 3,899,408
10,000 8.000%, 1/01/15 (Pre-refunded to 1/01/03) 1/03 at 103 AAA 11,016,200
10,425 Hospital Authority of Henry County (Georgia), Revenue 7/10 at 102 AAA 10,478,063
Certificates (Henry Medical Center, Inc. Project), Series,
5.875%, 7/01/20
6,500 The Medical Center Hospital Authority (Georgia), Revenue 8/09 at 102 AAA 6,115,525
Anticipation Certificates (Columbus Regional Healthcare
System, Inc. Project), Series 1999, 5.500%, 8/01/25
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 2.0%
Department of Budget and Finance of the State of Hawaii,
Special Purpose Revenue Bonds (Hawaii Electric Company, Inc. and
Subsidiaries Project), Series 1999D:
2,250 6.150%, 1/01/20 (Alternative Minimum Tax) 1/09 at 101 AAA 2,268,203
6,500 6.200%, 11/01/29 (Alternative Minimum Tax) 11/09 at 101 AAA 6,549,335
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 9.6%
10,000 City of Chicago (Illinois), General Obligation Adjustable 7/02 at 101 1/2 AAA 10,552,000
Rate Bonds, Central Public Library Project, Series C of 1988,
6.850%, 1/01/17 (Pre-refunded to 7/01/02)
8,200 Board of Education of the City of Chicago, General Obligation No Opt. Call AAA 8,791,630
Lease Certificates, 1992 Series A, 6.250%, 1/01/15
4,375 City of Chicago (Illinois), Chicago Midway Airport, Revenue 1/09 at 101 AAA 3,643,194
Bonds, Series 1998B, 5.000%, 1/01/35
10,150 Onterie Center Housing Finance Corporation (An Illinois 7/02 at 102 AAA 10,552,143
Not For Profit Corporation), Mortgage Revenue Refunding
Bonds, Series 1992A (FHA-Insured Mortgage Loan - Onterie
Center Project), 7.050%, 7/01/27
3,225 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 4,070,144
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1992A, 9.000%, 06/01/09
4,000 Public Building Commission of St. Clair County, Illinois, 12/02 at 102 AAA 4,127,880
Public Building Revenue Bonds, Series 1992, 6.350%, 12/01/09
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.9%
5,375 Indiana Health Facility Financing Authority, Hospital 5/02 at 102 AAA 5,580,164
Revenue Refunding and Improvement Bonds, Series 1992
(Community Hospitals Projects), 6.400%, 5/01/12
7,000 Southwest Allen Multi School Building Corporation, Ft. Wayne, 1/02 at 101 AAA 7,221,060
Indiana, First Mortgage Refunding Bonds, Series 1992B,
6.375%, 01/15/09
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.5%
6,500 County of Daviess, Kentucky, Insured Hospital Revenue 8/02 at 102 AAA 6,570,460
Bonds (ODCH, Inc. Project), Series A,6.250%, 8/01/22
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.2%
Louisiana Public Facilities Authority, Hospital Revenue Bonds
(Our Lady of Lourdes Regional Medical Center Project), Series
1992:
5,000 6.375%, 2/01/12 (Pre-refunded to 2/01/03) 2/03 at 102 AAA 5,263,200
4,000 6.450%, 2/01/22 (Pre-refunded to 2/01/03) 2/03 at 102 AAA 4,223,200
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MASSACHUSETTS - 7.1%
$ 3,000 Framingham Housing Authority, GNMA Collateralized 8/01 at 102 AAA $ 3,101,730
Mortgage Revenue Bonds (Beaver Terrace Apartments),
Series 1992A, 6.650%, 2/20/32
8,335 Massachusetts Health and Educational Facilities Authority, 7/02 at 102 AAA 8,581,216
Revenue Bonds, New England Medical Center Hospitals
Issue, Series F, 6.625%, 7/01/25
22,805 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102 AAA 19,246,052
System Revenue Bonds, 1997 Series C (Senior),
5.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.5%
2,000 Paw Paw Public Schools, County of Van Buren, State 5/05 at 100 AAA 2,053,440
of Michigan, 1995 School Building and Site Bonds,
5.625%, 5/01/25 (Pre-refunded to 5/01/05)
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.3%
1,505 Minnesota Housing Finance Agency, Rental Housing 2/05 at 102 AAA 1,488,596
Bonds, 1995 Series D, 5.950%, 2/01/18
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.4%
1,475 Mississippi Home Corporation, Single Family Senior Revenue 9/00 at 103 AAA 1,526,301
Refunding Bonds, Series 1990A, 9.250%, 3/01/12
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.3%
7,495 The Industrial Development Authority of Jefferson County, 8/07 at 100 AAA 10,043,375
Missouri, Housing Revenue Bonds (Richardson Road
Apartments Project), Series 1985, 11.000%, 12/15/15
(Pre-refunded to 8/15/07)
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 3.1%
13,000 City of Forsyth, Rosebud County, Montana, Pollution Control 3/02 at 102 AAA 13,569,270
Revenue Refunding Bonds (Puget Sound Power and Light
Company, Colstrip Project), Series 1992, 6.800%, 3/01/22
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 1.2%
5,050 Washoe County, Nevada, Variable Rate Demand Gas and 7/02 at 102 AAA 5,223,821
Water Facilities Refunding Revenue Bonds, (Sierra Pacific
Power Company Project), Series 1987, 6.300%, 12/01/14
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 5.0%
7,645 Metropolitan Transportation Authority (New York), Transit No Opt. Call AAA 8,990,367
Facilities Revenue Bonds, Series J, 9.100%, 7/01/05
6,935 The City of New York, General Obligation Bonds, Fiscal 8/02 at 101 1/2 AAA 7,299,434
1992 Series C, Subseries C-1, 6.625%, 8/01/14
(Pre-refunded to 8/01/02)
65 The City of New York, General Obligation Bonds, Fiscal 8/02 at 101 1/2 AAA 68,244
1992 Series C, Subseries C-1, 6.625%, 8/01/14
The City of New York, General Obligation Bonds, Fiscal 1992
Series C, Subseries C-1:
4,950 6.625%, 8/01/15 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 AAA 5,210,123
50 6.625%, 8/01/15 8/02 at 101 1/2 AAA 52,255
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.1%
5,715 Oklahoma Housing Finance Agency, GNMA Collateralized No Opt. Call AAA 6,036,526
Single Family Mortgage Revenue Bonds, Series 1987A,
7.997%, 8/01/18 (Alternative Minimum Tax)
3,000 Tulsa Industrial Authority, Multifamily Housing Revenue 11/05 at 103 Aaa 3,025,560
Refunding Bonds (GNMA Collateralized - Country Club of
Woodland Hills Development), Series 1995, 6.250%, 11/01/27
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.6%
19,140 Montgomery County Industrial Development Authority, 6/02 at 102 AAA 19,964,168
Pollution Control Revenue Refunding Bonds, 1992 Series A
(Philadelphia Electric Company Project), 6.625%, 6/01/22
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.9%
11,750 Rhode Island Depositors Economic Corporation, 8/02 at 102 AAA 12,415,050
Special Obligation Bonds, 1992 Series A, 6.625%, 8/01/19
(Pre-refunded to 8/01/02)
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.3%
9,450 South Carolina Public Service Authority, Santee Cooper, 7/02 at 102 AAA 9,948,677
Revenue Bonds, 1991 Series D, 6.500%, 7/01/24
(Pre-refunded to 7/01/02)
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN PREMIER INSURED MUNICIPAL INCOME FUND, INC. (NIF) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TENNESSEE - 1.1%
$ 5,000 The Health and Educational Facilities Board of the Metropolitan 11/09 at 101 AAA $ 4,975,550
Government of Nashville and Davidson County, Tennessee,
Revenue Bonds (Ascension Health Credit Group),
Series 1999A, 6.000%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 2.2%
1,140 Corpus Christi (Texas), Housing Finance Corporation, 7/01 at 103 AAA 1,208,240
Single Family Mortgage Senior Revenue Refunding Bonds,
Series 1991A, 7.700%, 7/01/11
1,010 City of El Paso (Texas), Property Finance Authority, Inc., 6/02 at 103 Aaa 1,060,379
Single Family Mortgage Revenue Bonds (GNMA Mortgage-Backed
Securities Program), Series 1992A, 8.700%, 12/01/18
(Alternative Minimum Tax)
5,210 Harris County, Texas, Toll Road Senior Lien, Revenue Refunding 8/02 at 102 AAA 5,494,048
Bonds, Series 1992A, 6.500%, 8/15/17 (Pre-refunded to 8/15/02)
1,600 Harris County, Texas, Toll Road Senior Lien Revenue Refunding 8/00 at 100 AAA 1,602,491
Bonds, Series 1992B, 6.625%, 8/15/17
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 1.1%
4,750 Puyallup School District No. 3, Pierce County, Washington, 12/02 at 100 AAA 4,965,460
Unlimited Tax General Obligation and Refunding Bonds,
1992 Series A, 6.700%, 12/01/09 (Pre-refunded to 12/01/02)
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.4%
6,000 Mason County, West Virginia, Pollution Control Revenue 6/02 at 102 AAA 6,299,400
Bonds (Appalachian Power Company Project), Series I,
6.850%, 6/01/22
------------------------------------------------------------------------------------------------------------------------------------
$ 519,380 Total Investments - (cost $418,533,904) - 98.7% 429,121,297
============= --------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.3%
7,000 Joliet Regional Port District, Marine Terminal Revenue Refunding A-1+ 7,000,000
Bonds (Exxon Project), Series 1989, Variable Rate Demand Bonds,
5.850%, 10/01/24+
3,100 Louisiana Offshore Terminal Authority, Deepwater Port VMIG-1 3,100,000
Refunding Revenue Bonds (LOOP INC. Project), First Stage
Series 1992A, Variable Rate Demand Bonds, 5.850%, 9/01/08+
------------------------------------------------------------------------------------------------------------------------------------
$ 10,100 Total Short-Term Investments - (cost $10,100,000) 10,100,000
============= --------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (1.0)% (4,368,522)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 434,852,775
====================================================================================================================
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, any of which ensure the timely
payment of principal and interest.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND 2 (NPX)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALABAMA - 0.6%
$ 2,500 City of Mobile, Alabama, General Obligation Refunding Warrants, 2/06 at 102 AAA $ 2,517,700
Series 1996, 5.750%, 2/15/16
2,000 City of Scottsboro (Alabama), General Obligation School Warrants, 7/06 at 102 AAA 2,033,040
Series 1996-B, 5.750%, 7/01/14
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.4%
2,935 Alaska Housing Finance Corporation, Mortgage Revenue Bonds, 6/06 at 102 AAA 2,973,360
Series 1996-B, 5.750%, 7/01/14
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.4%
10,500 The Industrial Development Authority of the City of Mesa, Arizona, 1/10 at 101 AAA 10,039,155
Revenue Bonds (Discovery Health System), Series 1999A,
5.625%, 1/01/29
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 5.4%
6,450 California Housing Finance Agency, Multi-Unit Rental Housing 2/03 at 102 Aa2 6,544,751
Revenue Bonds, 1992 Series A, 6.625%, 2/01/24
(Alternative Minimum Tax)
Modesto Irrigation District, California, Certificates of
Participation (Refunding and Capital Improvements),
Series 1999A:
3,320 0.000%, 7/01/19 7/09 at 60 7/16 AAA 1,071,630
3,320 0.000%, 7/01/20 7/09 at 57 3/8 AAA 1,002,374
3,320 0.000%, 7/01/21 7/09 at 54 7/16 AAA 936,871
3,500 Northern California Power Agency, Hydroelectric Project 7/03 at 102 AAA 3,490,410
Number One Revenue Bonds, 1993 Refunding A, 5.500%, 7/01/16
6,850 County of Orange, California, 1996 Recovery Certificates of 7/06 at 102 AAA 6,926,446
Participation, Series A, 6.000%, 7/01/26
13,000 Sacramento City Financing Authority (California), 1999 Capital 12/09 at 102 AAA 12,979,590
Improvement Revenue Bonds (Solid Waste and Redevelopment
Projects), 5.800%, 12/01/19
San Leandro Housing Finance Corporation, Mortgage Revenue
Refunding Bonds, Series 1993A (FHA-Insured Mortgage Loan -
Ashland Village Apartments, Section 8 Assisted Project):
1,580 6.550%, 1/01/12 1/02 at 102 AAA 1,613,322
5,100 6.650%, 1/01/25 at 102 AAA 5,207,304
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.2%
850 Adams County, Colorado, Pollution Control Refunding 1/09 at 102 AAA 771,171
Revenue Bonds (Public Service Company of ColoradoProjects),
Series 1999, 5.100%, 1/01/19
3,480 Colorado Health Facilities Authority, Hospital Revenue Bonds 12/09 at 101 Aaa 3,395,123
(Poudre Valley Health Care, Inc.) Series 1999A, 5.625%, 12/01/19
4,500 Colorado Health Facilities Authority, Hospital Revenue Bonds 12/09 at 101 Aaa 4,400,325
(Poudre Valley Health Care, Inc.), Series 1999A, 5.750%, 12/01/23
19,805 City and County of Denver, Colorado, Airport System Revenue 11/08 at 101 AAA 16,632,437
(Bonds, Series 1998B, 5.000%, 11/15/25 (Alternative Minimum Tax)
14,000 Pueblo County, Colorado, Pollution Control Refunding Revenue Bonds 1/09 at 102 AAA 12,701,640
(Public Service Company of Colorado Projects), Series 1999,
5.100%, 1/01/19
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 5.2%
5,000 District of Columbia (Washington, D.C.), General Obligation No Opt. Call AAA 5,015,050
Refunding Bonds, Series 1993B, 5.500%, 6/01/12
5,000 District of Columbia, Hospital Improvement and Refunding 7/02 at 102 AAA 5,040,750
Revenue Bonds (Children's Hospital Issue), Series 1992A,
6.250%, 7/15/19
4,755 District of Columbia (Washington, D.C.), General No Opt. Call AAA 5,135,448
Obligation Refunding Bonds, Series 1994A, 6.500%, 6/01/09
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND 2 (NPX) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
DISTRICT OF COLUMBIA (continued)
$ 3,765 District of Columbia Housing Finance Agency, Collateralized 6/03 at 102 AAA $ 3,782,545
Single Family Mortgage Revenue Bonds, Series 1990C-4,
6.350%, 12/01/24 (Alternative Minimum Tax)
Washington Convention Center Authority (Washington, D.C.),
Senior Lien Dedicated Tax Revenue Bonds, Series 1998:
4,885 5.000%, 10/01/18 10/08 at 101 AAA 4,382,187
16,705 5.000%, 10/01/21 10/08 at 101 AAA 14,604,513
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 1.0%
The Urban Renewal Agency of Boise City, Idaho, Urban Renewal
Lease Revenue Bonds, Series 1999 (Ada County Courts Complex
Project):
200 5.875%, 8/15/25 8/09 at 101 AAA 198,160
7,500 5.900%, 8/15/29 8/09 at 101 AAA 7,428,000
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.2%
2,500 City of Aurora, Kane, DuPage, Kendall and Will Counties, 1/05 at 100 AAA 2,579,625
Illinois, General Obligation Corporate Purpose Bonds,
Series 1996, 5.800%, 1/01/14 (Pre-refunded to 1/01/05)
Village of Bolingbrook, Illinois, General Obligation Bonds, Series 1997:
2,190 0.000%, 1/01/21 1/08 at 47 29/32 AAA 616,003
2,195 0.000%, 1/01/22 1/08 at 45 3/16 AAA 577,022
2,195 0.000%, 1/01/23 1/08 at 42 1/2 AAA 540,146
2,195 0.000%, 1/01/24 1/08 at 40 3/32 AAA 506,606
2,195 0.000%, 1/01/25 1/08 at 37 27/32 AAA 475,042
2,195 0.000%, 1/01/26 1/08 at 35 11/16 AAA 446,463
Village of Bolingbrook, Illinois, General Obligation Bonds, Series
1999C Refunding:
2,505 0.000%, 1/01/21 No Opt. Call AAA 710,293
2,930 0.000%, 1/01/22 No Opt. Call AAA 776,743
1,500 City of Chicago, General Obligation Bonds, Project 7/05 at 102 AAA 1,593,915
Series 1995, 6.125%, 1/01/16 (Pre-refunded to 7/01/05)
8,370 City of Chicago, Chicago Midway Airport Revenue Bonds, 1/07 at 102 AAA 8,235,996
Series 1996A, 5.625%, 1/01/17
City of Chicago, Chicago Midway Airport Revenue Bonds, 1994 Series A:
820 6.100%, 1/01/08 (Alternative Minimum Tax) (Pre-refunded to 1/01/04) 1/04 at 102 AAA 861,426
280 6.100%, 1/01/08 (Alternative Minimum Tax) 1/04 at 102 AAA 290,094
2,040 6.250%, 1/01/14 (Alternative Minimum Tax) (Pre-refunded to 1/01/04) 1/04 at 102 AAA 2,153,200
710 6.250%, 1/01/14 (Alternative Minimum Tax) 1/04 at 102 AAA 731,584
9,000 City of Chicago, Chicago O'Hare International Airport, 1/02 at 102 AAA 9,358,200
International Terminal Special Revenue Bonds, Series 1992,
6.750%, 1/01/18 (Alternative Minimum Tax)
8,235 City of Chicago (Illinois), Chicago O'Hare International Airport, 1/05 at 102 AAA 8,569,341
General Airport Second Lien Revenue Refunding Bonds,
1994 Series A, 6.375%, 1/01/15
10,000 City of Chicago (Illinois), Chicago O'Hare International Airport, 1/10 at 101 AAA 9,573,100
General Airport Second Lien Revenue Refunding Bonds,
1999 Series, 5.500%, 1/01/17 (Alternative Minimum Tax)
1,950 Illinois Health Facilities Authority, Health Facilities Refunding No Opt. Call AAA 2,137,766
Revenue Bonds (SSM Health Care), Series 1992AA,
6.550%, 6/01/14
Illinois Health Facilities Authority (Lutheran General Health
System), Revenue Bonds, Series 1993A:
4,355 6.125%, 4/01/12 No Opt. Call AAA 4,570,703
5,000 6.250%, 4/01/18 No Opt. Call AAA 5,333,350
3,220 Illinois Housing Development Authority, Housing Development 1/04 at 102 A+ 3,177,625
Bonds, 1993 Series A, 6.000%, 7/01/18
1,770 Illinois Health Facilities Authority, Revenue Bonds, 1/02 at 102 AAA 1,813,701
Series 1991 (Elmhurst Memorial Hospital), 6.625%, 1/01/22
4,000 The Illinois State Toll Highway Authority, Toll Highway 1/03 at 102 AAA 4,195,240
Priority Revenue Bonds, 1992 Series A, 6.200%, 1/01/16
(Pre-refunded to 1/01/03)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (continued)
$ 13,825 School District Number 46, Kane, Cook and DuPage Counties, No Opt. Call Aaa $ 16,582,673
Illinois, School Bonds (Elgin School District Number U-46),
Series 1997, 7.800%, 1/01/12
Metropolitan Pier and Exposition Authority (Illinois), McCormick
Place Expansion Project Bonds, Series 1992A:
6,335 6.500%, 6/15/22 (Pre-refunded to 6/15/03) 6/03 at 102 AAA 6,725,743
165 6.500%, 6/15/22 6/03 at 102 AAA 169,937
2,730 City of Peoria, City of Moline and City of Freeport, Illinois, 10/05 at 105 AAA 2,919,626
Collateralized Single Family Mortgage Revenue Bonds,
Series 1995A, 7.600%, 4/01/27 (Alternative Minimum Tax)
The County of St. Clair, Illinois, General Obligation Bonds
(Alternate Revenue Source), Series 1999:
7,455 0.000%, 10/01/22 10/09 at 48 7/16 AAA 1,799,413
7,595 0.000%, 10/01/23 10/09 at 45 3/4 AAA 1,712,824
7,745 0.000%, 10/01/24 10/09 at 43 3/16 AAA 1,635,202
8,080 0.000%, 10/01/26 10/09 at 38 15/32 AAA 1,498,113
8,455 0.000%, 10/01/28 10/09 at 34 9/32 AAA 1,373,515
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.8%
1,000 Fort Wayne South Side School Bldg. Corp., First Mortgage 1/04 at 102 AAA 1,054,780
Bonds, Series 1994, Allen County, Indiana, 6.125%, 1/15/12
(Pre-refunded to 1/15/04)
2,220 Indiana Municipal Power Agency, Power Supply System 1/03 at 102 AAA 2,317,192
Revenue Bonds, 1993 Series A, 6.125%, 1/01/19
9,770 Northwest Allen Building Corporation, Allen County, Indiana, 6/05 at 102 AAA 9,617,100
First Mortgage Bonds, Series 1995, 5.500%, 6/01/15
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.4%
1,075 City of Olathe, Kansas and Labette County, Kansas, 2/05 at 105 Aaa 1,156,636
Collateralized Single Family Mortgage Refunding
Revenue Bonds, Series A-I, 8.100%, 8/1/23
(Alternative Minimum Tax)
1,610 Sedwick County, Kansas and Shawnee County, Kansas, 11/04 at 105 Aaa 1,730,557
Collateralized Single Family Mortgage Refunding Revenue
Bonds, Series A-II, 8.050%, 5/1/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.6%
5,000 County of Jefferson, Kentucky, Health System Revenue 10/08 at 101 AAA 4,503,050
onds, Series 1998 (Alliant Health System, Inc.),
5.125%, 10/01/18
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.1%
1,000 Maryland Transportation Authority, Special Obligation Revenue 7/04 at 102 AAA 1,003,060
Bonds, Baltimore/Washington International Airport
Projects, Series 1994-A (Qualified Airport Bonds),
6.400%, 7/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.4%
5,000 Massachusetts Housing Finance Agency, Housing Project 4/03 at 102 AAA 5,073,750
Revenue Bonds, 6.150%, 10/01/15
7,635 Massachusetts Housing Finance Agency, Single Family Housing 6/06 at 102 AAA 7,672,717
Revenue Bonds, Series 48, 6.350%, 6/01/26
(Alternative Minimum Tax)
5,000 Massachusetts Housing Finance Authority, Single Family Housing 6/07 at 102 AAA 4,979,400
Revenue Bonds, Series 53, 6.150%,12/01/29
(Alternative Minimum Tax)
8,750 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102 AAA 7,384,475
System Revenue Bonds, 1997 Series C (Senior), 5.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.9%
9,250 Michigan Public Power Agency, Belle River Project Refunding 1/03 at 102 AAA 8,638,020
Revenue Bonds, 1993 Series A, 5.250%, 1/01/18
10,000 Michigan State Housing Development Authority, Rental Housing 4/07 at 102 AAA 9,938,700
Revenue Bonds, 1997 Series A, 6.000%, 4/01/16
(Alternative Minimum Tax)
10,000 County of Monroe, Michigan, Pollution Control Revenue 9/03 at 102 AAA 10,388,100
Bonds (The Detroit Edison Company Project), Series CC-1992,
6.550%, 9/01/24 (Alternative Minimum Tax)
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND 2 (NPX) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MINNESOTA - 1.2%
$ 9,025 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102 AAA $ 8,926,628
1995 Series D, 5.950%, 2/01/18
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.5%
1,000 The Industrial Development Authority of the City of Hazelwood, 9/06 at 102 AAA 997,860
Missouri, Multifamily Housing Revenue Refunding Bonds
(GNMA Collateralized - The Lakes Apartments Project), Series 1996,
6.000%, 9/20/16
8,000 City of Kansas City, Missouri, General Improvement Airport 9/05 at 101 AAA 8,663,040
Refunding Revenue Bonds, Series 1995, 6.750%, 9/01/09
4,500 Land Clearance for Redevelopment Authority of Kansas City, 12/05 at 102 AAA 4,561,875
Missouri, Lease Revenue Bonds (Municipal Auditorium and
Muehlebach Hotel Redevelopment Project), Series 1995A,
5.900%, 12/01/18
1,000 Kansas City Municipal Assistance Corporation, Leasehold 1/06 at 101 AAA 1,015,760
Revenue Capital Improvement Bonds (Kansas City, Missouri,
Lessee), Series 1996B, 5.750%, 1/15/14
1,030 Missouri Housing Development Commission, Multifamily Housing 12/06 at 102 AAA 1,022,460
Revenue Bonds (Brookstone Village Apartments Project),
1996 Series A, 6.000%, 12/01/16 (Alternative Minimum Tax)
1,915 Health and Educational Facilities Authority of the State of 2/02 at 102 AAA 1,933,729
Missouri, Health Facilities Revenue Bonds (Health Midwest),
Series 1992B, 6.250%, 2/15/22
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.6%
5,000 Clark County, Nevada, Industrial Development Revenue Bonds 6/02 at 102 AAA 5,195,300
(Nevada Power Company Project), Series 1992A, 6.700%, 6/01/22
(Alternative Minimum Tax)
8,320 Clark County School District, Nevada, General Obligation No Opt. Call AAA 8,977,030
School Improvement Bonds (Limited Tax), Series May 1, 1995A,
7.250%, 6/15/04
Las Vegas Convention and Visitors Authority, Nevada, Revenue
Bonds, Series 1999:
2,695 5.750%, 7/01/15 7/09 at 101 AAA 2,718,500
6,035 5.750%, 7/01/16 7/09 at 101 AAA 6,064,451
6,500 5.750%, 7/01/17 7/09 at 101 AAA 6,506,825
500 5.750%, 7/01/18 7/10 at 100 AAA 498,000
4,000 6.000%, 7/01/19 7/09 at 101 AAA 4,058,920
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 19.6%
24,000 Long Island Power Authority, Electric System General Revenue 6/08 at 101 AAA 21,567,120
Bonds, Series 1998A, 5.000%, 12/01/18
17,740 Long Island Power Authority (New York), Electric System General 4/08 at 101 AAA 15,315,474
Revenue Bonds, Series 1998B, 4.750%, 4/01/18
4,090 Metropolitan Transportation Authority, Commuter Facilities No Opt. Call AAA 4,764,073
Revenue Bonds, Series 1994A, 8.000%, 7/01/07
5,000 Metropolitan Transportation Authority, Transit Facilities No Opt. Call AAA 5,312,600
Revenue Bonds, Series K, 6.300%, 7/01/06
4,985 Metropolitan Transportation Authority (New York), Transit Facilities No Opt. Call AAA 5,809,818
Revenue Bonds, Series O, 8.000%, 7/01/07
7,500 Nassau Health Care Corporation, Health System Revenue Bonds, 8/09 at 102 AAA 7,307,625
Series 1999 (Nassau County, New York, Guaranteed),
5.750%, 8/01/29
4,000 The City of New York, General Obligation Bonds, No Opt. Call AAA 4,517,840
Fiscal 1995 Series E, 8.000%, 8/01/05
5,000 The City of New York, General Obligation Bonds, 8/06 at 101 1/2 AAA 5,266,650
Fiscal 1997 Series E, 6.000%, 8/01/08
7,900 The City of New York, General Obligation Bonds, 3/06 at 101 1/2 AAA 7,963,753
Fiscal 1996 Series I, 5.875%, 3/15/18
The City of New York, General Obligation Bonds, Fiscal 1993
Series A:
790 5.750%, 8/01/10 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 AAA 817,065
1,710 5.750%, 8/01/10 8/02 at 101 1/2 AAA 1,740,455
5,000 The City of New York, General Obligation Bonds, 2/08 at 101 AAA 4,735,550
Fiscal 1998 Series F, 5.375%, 8/01/19
7,000 New York City, New York, Municipal Water Finance Authority, 6/09 at 101 AAA 6,850,620
Water and Sewer System Revenue Bonds, Fiscal 2000 Series A,
5.750%, 6/15/31
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK (continued)
Dormitory Authority of the State of New York, New Island
Hospital Insured Revenue Bonds, Series 1999B:
$ 3,400 5.750%, 7/01/19 7/09 at 101 AAA $ 3,358,860
5,750 6.000%, 7/01/24 7/09 at 101 AAA 5,770,298
10,000 New York State Finance Agency, Housing Project Mortgage 5/06 at 102 AAA 10,103,800
Revenue Bonds, 1996 Series A Refunding, 6.125%, 11/01/20
New York State Medical Care Facilities Finance Agency, Mental
Health Services Facilities Improvement Revenue Bonds, 1995
Series C:
6,095 6.000%, 8/15/15 (Pre-refunded to 2/15/05) 2/05 at 102 AAA 6,425,044
55 6.000%, 8/15/15 2/05 at 102 AAA 56,115
New York State Medical Care Facilities Finance Agency, New York
Hospital FHA-Insured Mortgage Revenue Bonds, 1994 Series A:
3,000 6.750%, 8/15/14 (Pre-refunded to 2/15/05) 2/05 at 102 AAA 3,262,500
2,500 6.800%, 8/15/24 (Pre-refunded to 2/15/05) 2/05 at 102 AAA 2,724,000
20,000 New York State Urban Development Corporation, 1/07 at 102 AAA 19,424,600
Correctional Capital Facilities Revenue Bonds, Series 7,
5.700%, 1/01/27
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.4%
1,915 City of Cleveland, Ohio, Waterworks Improvement First 1/02 at 102 AAA 1,994,549
Mortgage Revenue Bonds, Series F, 1992A, 6.250%, 1/01/15
(Pre-refunded to 1/01/02)
85 City of Cleveland, Ohio, Waterworks Improvements First 1/02 at 102 AAA 87,528
Mortgage Revenue Bonds, Series F, 1992, 6.250%, 1/01/15
3,250 Fairfield City School District, County of Butler, Ohio, School 12/05 at 100 AAA 3,290,495
Improvement Bonds, Series 1995, 6.000%, 12/01/20
4,250 Ohio Air Quality Development Authority, State of Ohio, 6/02 at 103 AAA 4,595,865
Collateralized Pollution Control Revenue Refunding Bonds,
Series 1992 (The Cleveland Electric Illuminating Company
Project), 8.000%, 12/01/13
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.0%
8,425 McGee Creek Authority (Oklahoma), Water Revenue Bonds, No Opt. Call AAA 8,728,300
Series 1992, 6.000%, 1/01/23
6,000 Norman Regional Hospital Authority (Norman, Oklahoma), 9/01 at 102 AAA 6,289,560
Hospital Revenue Bonds, Series 1991, 6.900%, 9/01/21
(Pre-refunded to 9/01/01)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.3%
3,550 Allegheny County Residential Finance Authority, Single Family 11/06 at 102 Aaa 3,617,344
Mortgage Revenue Bonds, 1996 Series AA, 6.450%, 5/01/28
(Alternative Minimum Tax)
9,485 The Berks County Municipal Authority (Pennsylvania), Hospital 11/09 at 102 AAA 9,520,095
Revenue Bonds (The Reading Hospital and Medical Center
Project), Series of 1999, 6.000%, 11/01/19
4,750 Lehigh County Industrial Development Authority, Pollution 11/02 at 102 AAA 4,899,150
Control Revenue Refunding Bonds, 1992 Series A (Pennsylvania
Power and Light Company Project), 6.400%, 11/01/21
1,000 Luzerne County Industrial Development Authority, Exempt 12/04 at 102 AAA 1,075,030
Facilities Revenue Refunding Bonds, 1994 Series A (Pennsylvania
Gas and Water Company Project), 7.000%, 12/01/17
(Alternative Minimum Tax)
University of Pittsburgh of the Commonwealth System of Higher
Education, University Capital Project Bonds (Pennsylvania), 1992
Series A:
1,395 6.125%, 6/01/21 (Pre-refunded to 6/01/02) 6/02 at 102 AAA 1,456,045
3,355 6.125%, 6/01/21 6/02 at 102 AAA 3,386,101
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.9%
6,500 Piedmont Municipal Power Agency (South Carolina), 1/03 at 102 AAA 6,836,375
Electric Revenue Bonds, 1992 Refunding Series,
6.300%, 1/01/22 (Pre-refunded to 1/01/03)
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND 2 (NPX) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TEXAS - 3.0%
State of Texas, Veterans Housing Assistance Bonds,
Series 1993, General Obligation Bonds:
$ 1,315 6.800%, 12/01/23 (Alternative Minimum Tax) 12/03 at 102 Aa1 $ 1,357,330
6,585 6.800%, 12/01/23 (Alternative Minimum Tax) 12/03 at 102 AAA 6,812,709
9,950 Tyler Health Facilities Development Corporation (Texas), 11/07 at 102 AAA 9,316,882
Hospital Revenue Bonds (East Texas Medical Center Regional
Healthcare System Project), Series 1997A, 5.600%, 11/01/27
5,175 Tyler Health Facilities Development Corporation (Texas), 2/09 at 102 AAA 4,652,998
Hospital Revenue Bonds (East Texas Medical Center Regional
Healthcare System Project), Series 1997D (Remarketed),
5.375%, 11/01/27
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.5%
3,600 State Board of Regents of the State of Utah, Student Loan 11/03 at 102 Aaa 3,633,444
Revenue Bonds, Series 1993B, 5.900%, 11/01/13
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.2%
1,320 Vermont Educational and Health Buildings Financing Agency, 12/10 at 101 AAA 1,312,502
Hospital Revenue Bonds (Fletcher Allen Health Care Project),
Series 2000A, 6.000%, 12/01/23
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.3%
2,250 Virginia Housing Development Authority, Multifamily Housing 1/08 at 102 AAA 2,283,660
Revenue Bonds, Series B, 6.050%, 5/01/17
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.5%
5,230 Public Utility District No. 1 of Douglas County, Washington, 9/09 at 102 AAA 5,208,295
Wells Hydro-Electric Revenue Bonds, Series 1999A,
6.125%, 9/01/29 (Alternative Minimum Tax)
2,500 City of Tacoma, Washington, Sewer Revenue Bonds, 12/05 at 100 AAA 2,620,450
1995 Series B, 6.375%, 12/01/15
25,040 State of Washington, Certificates of Participation (Washington 7/09 at 100 AAA 23,940,494
State Convention and Trade Center), Series 1999,
5.250%, 7/01/14
8,100 Washington Health Care Facilities Authority, Revenue Bonds, 2/03 at 102 AAA 8,264,268
Series 1992 (Virginia Mason Obligated Group, Seattle),
6.300%, 2/15/17
6,130 Washington Health Care Facilities Authority, Revenue 11/02 at 102 AAA 6,443,304
Bonds, Series 1992 (Swedish Hospital Medical Center, Seattle),
6.300%, 11/15/22 (Pre-refunded to 11/15/02)
10,455 Washington Public Power Supply System, Nuclear Project 7/03 at 102 AAA 10,313,335
No. 1 Refunding Revenue Bonds, Series 1993A,
5.700%, 7/01/17
3,750 Washington Public Power Supply System, Nuclear Project 7/03 at 102 AAA 3,698,813
No. 1 Refunding Revenue Bonds, Series 1993B, 5.600%, 7/01/15
10,500 Washington Public Power Supply System, Nuclear Project 7/06 at 102 AAA 10,680,390
No. 1 Refunding Revenue Bonds, Series 1996-A (Bonneville
Power Administration), 5.750%, 7/01/11
6,295 Washington Public Power Supply System, Nuclear Project 7/03 at 102 AAA 6,139,320
No. 3 Refunding Revenue Bonds, Series 1993B,
5.600%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 2.8%
20,000 The County Commission of Pleasants County, West Virginia, 5/05 at 102 AAA 20,659,600
Pollution Control Revenue Bonds (Monongahela Power
Company, Pleasants Station Project), 1995 Series C,
6.150%, 5/01/15
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WISCONSIN - 1.8%
$ 2,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/02 at 102 AAA $ 2,107,240
Bonds, Series 1992 (Children's Hospital of Wisconsin, Inc.
Project), 6.500%, 8/15/10 (Pre-refunded to 8/15/02)
6,250 Wisconsin Health and Educational Facilities Authority, 8/06 at 102 AAA 6,187,500
Revenue Bonds, Series 1996 (Sinai Samaritan Medical
Center, Inc. Project), 5.750%, 8/15/16
5,000 Wisconsin Health and Educational Facilities Authority, 8/05 at 102 AAA 5,141,400
Revenue Bonds, Series 1995 (Mercy Health System
Corporation), 6.125%, 8/15/13
------------------------------------------------------------------------------------------------------------------------------------
$ 777,305 Total Investments - (cost $726,170,789) - 98.2% 721,305,678
============= --------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 12,971,317
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 734,276,995
====================================================================================================================
All of the bonds in the portfolio are either covered by
Original Issue Insurance, Secondary Market Insurance or
Portfolio Insurance, or are backed by an escrow or trust
containing sufficient U.S. Government or U.S. Government
agency securities, any of which ensure the timely payment of
principal and interest.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS (Unaudited)
April 30, 2000
<CAPTION>
INSURED INSURED PREMIER INSURED
QUALITY OPPORTUNITY INSURED INCOME PREMIUM INCOME 2
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market value $848,829,137 $1,816,193,057 $429,121,297 $721,305,678
Temporary investments in short-term
municipal securities, at amortized
cost, which approximates market value 6,600,000 -- 10,100,000 --
Cash 1,905,547 4,888,957 -- --
Receivables:
Interest 16,054,256 36,572,507 7,972,679 13,987,891
Investments sold 9,674,492 8,692,486 1,420,465 16,390,007
Other assets 38,527 54,491 18,415 35,618
------------------------------------------------------------------------------------------------------------------------------------
Total assets 883,101,959 1,866,401,498 448,632,856 751,719,194
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- 6,014,923 5,687,952
Payable for investments purchased 33,785,588 28,912,945 5,849,718 8,414,947
Accrued expenses:
Management fees 437,195 925,841 228,240 381,126
Other 424,367 641,452 152,369 532,602
Preferred share dividends payable 193,319 388,233 89,272 167,853
Common share dividends payable 2,894,997 6,039,089 1,445,559 2,257,719
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 37,735,466 36,907,560 13,780,081 17,442,199
------------------------------------------------------------------------------------------------------------------------------------
Net assets $845,366,493 $1,829,493,938 $434,852,775 $734,276,995
====================================================================================================================================
Preferred shares, at liquidation value $318,000,000 $ 680,000,000 $161,000,000 $268,900,000
====================================================================================================================================
Preferred shares outstanding 12,720 27,200 6,440 10,756
====================================================================================================================================
Common shares outstanding 37,843,166 81,060,946 19,274,160 37,253,959
====================================================================================================================================
Net asset value per Common share
outstanding (net assets less Preferred
shares at liquidation value, divided
by Common shares outstanding) $ 13.94 $ 14.18 $ 14.21 $ 12.49
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS (Unaudited)
Six Months Ended April 30, 2000
<CAPTION>
INSURED INSURED PREMIER INSURED
QUALITY OPPORTUNITY INSURED INCOME PREMIUM INCOME 2
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME $25,927,223 $55,829,873 $13,292,574 $21,043,331
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,624,376 5,570,612 1,374,638 2,282,299
Preferred shares - auction fees 372,178 814,246 191,924 335,204
Preferred shares - dividend disbursing agent fees 24,932 52,596 25,185 22,020
Shareholders' servicing agent fees and expenses 37,108 53,929 12,816 28,170
Custodian's fees and expenses 52,461 76,013 51,602 60,235
Directors'/Trustees' fees and expenses 9,915 26,166 5,713 8,296
Professional fees 16,428 12,994 12,971 10,185
Shareholders' reports - printing and mailing expenses 17,011 37,846 1,820 32,554
Stock exchange listing fees 17,741 35,333 12,377 6,178
Investor relations expense 29,019 54,101 -- 4,628
Portfolio insurance expense 38,732 83,580 12,128 34,963
Other expenses 24,912 84,147 17,985 25,447
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 3,264,813 6,901,563 1,719,159 2,850,179
Custodian fee credit (44,822) (52,160) (27,742) (44,469)
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 3,219,991 6,849,403 1,691,417 2,805,710
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income 22,707,232 48,980,470 11,601,157 18,237,621
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from
investment transactions (922,655) (4,116,354) (2,339,700) (5,198,083)
Change in net unrealized appreciation
(depreciation) of investments 1,383,733 (1,289,081) 1,670,790 9,101,371
-----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments 461,078 (5,405,435) (668,910) 3,903,288
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $23,168,310 $43,575,035 $10,932,247 $22,140,909
===================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS (Unaudited)
<CAPTION>
INSURED QUALITY INSURED OPPORTUNITY
------------------------------------ ------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
4/30/00 10/31/99 4/30/00 10/31/99
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 22,707,232 $ 44,256,614 $ 48,980,470 $ 95,665,870
Net realized gain (loss) from
investment transactions (922,655) (1,848,032) (4,116,354) (1,440,071)
Change in net unrealized appreciation
(depreciation) of investments 1,383,733 (70,918,815) (1,289,081) (138,439,350)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 23,168,310 (28,510,233) 43,575,035 (44,213,551)
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net investment income:
Common shareholders (17,370,019) (34,678,458) (36,477,458) (75,984,403)
Preferred shareholders (6,220,885) (8,346,002) (13,119,468) (19,526,388)
From accumulated net realized gains from
investment transactions:
Common shareholders -- (4,753,628) -- (3,268,339)
Preferred shareholders -- (1,322,344) -- (864,520)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (23,590,904) (49,100,432) (49,596,926) (99,643,650)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to
shareholders due to
reinvestment of distributions -- 2,928,525 -- 7,709,813
Net proceeds from sale of Preferred shares -- 57,291,876 -- 79,074,482
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from
capital share transactions -- 60,220,401 -- 86,784,295
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (422,594) (17,390,264) (6,021,891) (57,072,906)
Net assets at the beginning of period 845,789,087 863,179,351 1,835,515,829 1,892,588,735
-----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $845,366,493 $845,789,087 $1,829,493,938 $1,835,515,829
===================================================================================================================================
Balance of undistributed net investment
income at the end of period $ 956,102 $ 1,839,774 $ 539,111 $ 1,155,567
===================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER INSURED INCOME INSURED PREMIUM INCOME 2
------------------------------------- ------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
4/30/00 10/31/99 4/30/00 10/31/99
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 11,601,157 $ 22,396,247 $ 18,237,621 $ 35,954,517
Net realized gain (loss) from
investment transactions (2,339,700) (2,424,689) (5,198,083) 180,105
Change in net unrealized appreciation
(depreciation) of investments 1,670,790 (34,028,479) 9,101,371 (64,082,302)
Net increase (decrease) in net assets
from operations 10,932,247 (14,056,921) 22,140,909 (27,947,680)
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net investment income:
Common shareholders (8,673,374) (17,326,755) (13,523,191) (27,045,477)
Preferred shareholders (3,074,591) (4,511,430) (5,195,621) (8,442,753)
From accumulated net realized gains
from investment transactions:
Common shareholders -- (772,120) -- --
Preferred shareholders -- (208,292) -- --
Decrease in net assets from distributions
to shareholders (11,747,965) (22,818,597) (18,718,812) (35,488,230)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- 1,402,822 -- 429,230
Net proceeds from sale of Preferred shares -- 20,675,162 -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from
capital share transactions -- 22,077,984 -- 429,230
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (815,718) (14,797,534) 3,422,097 (63,006,680)
Net assets at the beginning of period 435,668,493 450,466,027 730,854,898 793,861,578
-----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $434,852,775 $435,668,493 $734,276,995 $730,854,898
===================================================================================================================================
Balance of undistributed net investment
income at the end of period $ 706,810 $ 853,618 $ 923,839 $ 1,181,455
===================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
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) and Nuveen Insured Premium Income
Municipal Fund 2 (NPX).
Each Fund invests primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities. The Funds are registered under
the Investment Company Act of 1940 as closed-end, diversified management
investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At
April 30, 2000, Insured Quality, Insured Opportunity and Premier Insured Income
had outstanding when-issued purchase commitments of $33,785,588, $28,912,945,
and $5,849,718, respectively. There were no such outstanding purchase
commitments in Insured Premium Income 2.
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
when required for federal income tax purposes.
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its tax-exempt net
investment income, in addition to any significant amounts of net realized
capital gains and/or market discount realized from investment transactions. The
Funds currently consider significant net realized capital gains and/or market
discount 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. Net realized
capital gain and market discount distributions are subject to federal taxation.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of distributions are determined in accordance with federal
income tax regulations, which may differ from generally accepted accounting
principles. Accordingly, temporary over-distributions as a result of these
differences may occur and will be classified as either distributions in excess
of net investment income, distributions in excess of net realized gains and/or
distributions in excess of net ordinary taxable income from investment
transactions, where applicable.
<PAGE>
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in more than one Series. The dividend
rate on each Series may change every seven days, as set by the auction agent.
The number of Preferred shares outstanding, by Series and in total, at April 30,
2000, is as follows:
PREMIER INSURED
INSURED INSURED INSURED PREMIUM
QUALITY OPPORTUNITY INCOME INCOME 2
--------------------------------------------------------------------------------
Number of shares:
Series M 2,600 4,000 -- 2,080
Series T 2,600 4,000 -- 2,200
Series W 2,600 4,000 840 2,080
Series W2 -- 3,200 -- --
Series Th 2,320 4,000 2,800 2,200
Series Th2 -- 4,000 -- --
Series F 2,600 4,000 2,800 2,196
--------------------------------------------------------------------------------
Total 12,720 27,200 6,440 10,756
================================================================================
Insurance
The Funds invest in municipal securities which are either covered by insurance
or are backed by an escrow or trust account containing sufficient U.S.
Government or U.S. Government agency securities, both of which ensure the timely
payment of principal and interest. Each insured municipal security is covered by
Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance.
Such insurance does not guarantee the market value of the municipal securities
or the value of the Funds' shares. Original Issue Insurance and Secondary Market
Insurance remain in effect as long as the municipal securities covered thereby
remain outstanding and the insurer remains in business, regardless of whether
the Funds ultimately dispose of such municipal securities. Consequently, the
market value of the municipal securities covered by Original Issue Insurance or
Secondary Market Insurance may reflect value attributable to the insurance.
Portfolio Insurance is effective only while the municipal securities are held by
the Funds. Accordingly, neither the prices used in determining the market value
of the underlying municipal securities nor the 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.
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the six months ended April 30, 2000.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby the custodian fees
and expenses are reduced by credits earned on each Fund's cash on deposit with
the bank. Such deposit arrangements are an alternative to overnight investments.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
<TABLE>
<CAPTION>
INSURED QUALITY INSURED OPPORTUNITY
----------------------------- -----------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
4/30/00 10/31/99 4/30/00 10/31/99
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common shares issued to shareholders
due to reinvestment of distributions -- 185,736 -- 473,067
========================================================================================================
Preferred shares sold -- 2,320 -- 3,200
========================================================================================================
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
<TABLE>
PREMIER INSURED INCOME INSURED PREMIUM INCOME 2
----------------------------- -----------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
4/30/00 10/31/99 4/30/00 10/31/99
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common shares issued to shareholders
due to reinvestment of distributions -- 85,914 -- 14,923
========================================================================================================
Preferred shares sold -- 840 -- --
========================================================================================================
</TABLE>
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 1, 2000, to shareholders of record on
May 15, 2000, as follows:
PREMIER INSURED
INSURED INSURED INSURED PREMIUM
QUALITY OPPORTUNITY INCOME INCOME 2
--------------------------------------------------------------------------------
Dividend per share $.0765 $.0745 $.0750 $.0605
================================================================================
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities for the six months ended April
30, 2000, were as follows:
<TABLE>
<CAPTION>
PREMIER INSURED
INSURED INSURED INSURED PREMIUM
QUALITY OPPORTUNITY INCOME INCOME 2
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases:
Long-term municipal securities $103,560,803 $139,815,352 $42,306,645 $161,411,278
Short-term municipal securities 57,600,000 87,700,000 59,600,000 46,250,000
Sales and maturities:
Long-term municipal securities 56,592,200 101,126,754 46,892,825 148,997,991
Short-term municipal securities 72,975,000 104,905,000 60,000,000 65,550,000
=============================================================================================================
</TABLE>
At April 30, 2000, the identified cost of investments owned for federal income
tax purposes were as follows:
PREMIER INSURED
INSURED INSURED INSURED PREMIUM
QUALITY OPPORTUNITY INCOME INCOME 2
--------------------------------------------------------------------------------
$853,851,164 $1,791,538,032 $428,633,904 $726,266,749
================================================================================
At October 31, 1999, the Funds' last fiscal year end, the Funds had unused
capital loss carryforwards available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryforwards
will expire as follows:
PREMIER INSURED
INSURED INSURED INSURED PREMIUM
QUALITY OPPORTUNITY INCOME INCOME 2
--------------------------------------------------------------------------------
Expiration year:
2002 $ -- $ -- $ -- $ 1,737,245
2003 -- -- -- 12,029,555
2004 -- -- -- 2,080,786
2005 -- -- -- --
2006 -- -- -- --
2007 1,848,032 29,713 2,424,689 --
--------------------------------------------------------------------------------
Total $1,848,032 $29,713 $2,424,689 $15,847,586
================================================================================
<PAGE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at April 30, 2000, were as follows:
<TABLE>
<CAPTION>
PREMIER INSURED
INSURED INSURED INSURED PREMIUM
QUALITY OPPORTUNITY INCOME INCOME 2
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized:
appreciation $ 22,807,225 $ 61,623,058 $16,248,989 $ 12,268,313
depreciation (21,229,252) (36,968,033) (5,661,596) (17,229,384)
-------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) $ 1,577,973 $ 24,655,025 $10,587,393 $ (4,961,071)
=============================================================================================================
</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 an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net assets of each Fund:
AVERAGE DAILY NET ASSETS MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .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 of its Directors/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
7. COMPOSITION OF NET ASSETS
At April 30, 2000, net assets consisted of:
<TABLE>
<CAPTION>
PREMIER INSURED
INSURED INSURED INSURED PREMIUM
QUALITY OPPORTUNITY INCOME INCOME 2
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $318,000,000 $ 680,000,000 $161,000,000 $268,900,000
Common shares, $.01 par value per share 378,432 810,609 192,742 372,540
Paid-in surplus 527,224,673 1,127,635,260 267,130,219 490,081,848
Balance of undistributed net investment income 956,102 539,111 706,810 923,839
Accumulated net realized gain (loss) from
investment transactions (2,797,758) (5,556,425) (4,764,389) (21,136,121)
Net unrealized appreciation (depreciation)
of investments 1,605,044 26,065,383 10,587,393 (4,865,111)
----------------------------------------------------------------------------------------------------------------
Net assets $845,366,493 $1,829,493,938 $434,852,775 $734,276,995
================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 Unlimited
Preferred 1,000,000 1,000,000 1,000,000 Unlimited
================================================================================================================
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
8. INVESTMENT COMPOSITION
At April 30, 2000, the revenue sources by municipal purpose, expressed as a
percent of long-term investments, were as follows:
Premier Insured
Insured Insured Insured Premium
Quality Opportunity Income Income 2
--------------------------------------------------------------------------------
Education and Civic Organizations 4% 1% 1% 1%
Healthcare 16 14 16 12
Housing/Multifamily 6 3 4 8
Housing/Single Family 6 11 3 4
Tax Obligation/General 4 2 1 11
Tax Obligation/Limited 10 3 17 18
Transportation 17 12 9 12
U.S. Guaranteed 21 29 34 9
Utilities 14 14 15 22
Water and Sewer 2 11 -- 3
--------------------------------------------------------------------------------
100% 100% 100% 100%
================================================================================
All of the long-term and intermediate-term investments owned by the Funds are
either covered by insurance issued by several private insurers or are backed by
an escrow or trust containing U.S. Government or U.S. Government agency
securities, both of which ensure the timely payment of principal and interest in
the event of default. Such insurance or escrow, however, does not guarantee the
market value of the municipal securities or the value of the Funds' shares.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout
each period:
<CAPTION>
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
----------------------------- ----------------------------------------------------------------
NET NET NET
REALIZED/ INVESTMENT INVESTMENT CAPITAL CAPITAL
BEGINNING NET UNREALIZED INCOME INCOME GAINS GAINS
NET ASSET INVESTMENT INVESTMENT TO COMMON TO PREFERRED TO COMMON TO PREFERRED
VALUE INCOME GAIN (LOSS) TOTAL SHAREHOLDERS SHAREHOLDERS+ SHAREHOLDERS SHAREHOLDERS+ TOTAL
------------------------------------------------------------------------------------------------------------------------------------
INSURED QUALITY
Year Ended 10/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 (a) $13.95 $.60 $ .01 $ .61 $ (.46) $(.16) $ -- $ -- $ (.62)
1999 16.02 1.17 (1.91) (.74) (.92) (.22) (.13) (.04) (1.31)
1998 15.68 1.18 .36 1.54 (.94) (.25) (.01) -- (1.20)
1997 15.50 1.22 .28 1.50 (.98) (.25) (.07) (.02) (1.32)
1996 15.79 1.24 (.12) 1.12 (.98) (.25) (.14) (.04) (1.41)
1995 14.50 1.27 1.32 2.59 (1.01) (.29) -- -- (1.30)
<CAPTION>
INSURED OPPORTUNITY
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 10/31:
2000 (a) 14.25 .60 (.06) .54 (.45) (.16) -- -- (.61)
1999 16.04 1.18 (1.73) (.55) (.94) (.24) (.04) (.01) (1.23)
1998 15.78 1.21 .28 1.49 (.97) (.26) -- -- (1.23)
1997 15.54 1.23 .28 1.51 (.98) (.26) (.02) (.01) (1.27)
1996 15.60 1.24 .02 1.26 (.98) (.26) (.06) (.02) (1.32)
1995 14.04 1.25 1.60 2.85 (.98) (.31) -- -- (1.29)
<CAPTION>
PREMIER INSURED INCOME
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 10/31:
2000 (a) 14.25 .60 (.03) .57 (.45) (.16) -- -- (.61)
1999 16.18 1.16 (1.89) (.73) (.90) (.23) (.04) (.01) (1.18)
1998 15.84 1.16 .38 1.54 (.92) (.25) (.02) (.01) (1.20)
1997 15.49 1.19 .36 1.55 (.94) (.26) -- -- (1.20)
1996 15.53 1.19 (.03) 1.16 (.94) (.26) -- -- (1.20)
1995 14.05 1.20 1.51 2.71 (.94) (.29) -- -- (1.23)
<CAPTION>
INSURED PREMIUM INCOME 2
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 10/31:
2000 (a) 12.40 .50 .09 .59 (.36) (.14) -- -- (.50)
1999 14.10 .97 (1.71) (.74) (.73) (.23) -- -- (.96)
1998 13.60 .95 .53 1.48 (.73) (.25) -- -- (.98)
1997 13.04 1.00 .54 1.54 (.73) (.25) -- -- (.98)
1996 13.03 .99 -- .99 (.71) (.27) -- -- (.98)
1995 10.99 1.00 2.08 3.08 (.75) (.29) -- -- (1.04)
<PAGE>
<CAPTION>
TOTAL RETURNS
-----------------------
ORGANIZATION
AND OFFERING
COSTS BASED
AND PREFERRED ENDING BASED ON
SHARE NET ENDING ON NET
UNDERWRITING ASSET MARKET MARKET ASSET
DISCOUNTS VALUE VALUE VALUE** VALUE**
------------------------------------------------------------------------------------------------------------------------------------
INSURED QUALITY
Year Ended 10/31:
<S> <C> <C> <C> <C> <C>
2000 (a) $-- $13.94 $13.3750 4.99% 3.28%
1999 (.02) 13.95 13.1875 (9.65) (6.77)
1998 -- 16.02 15.6250 6.13 8.43
1997 -- 15.68 15.6250 10.57 8.22
1996 -- 15.50 15.1250 8.54 5.49
1995 -- 15.79 15.0000 22.62 16.43
<CAPTION>
INSURED OPPORTUNITY
<S> <C> <C> <C> <C> <C>
Year Ended 10/31:
2000 (a) -- 14.18 12.5000 (2.71) 2.72
1999 (.01) 14.25 13.3125 (14.71) (5.33)
1998 -- 16.04 16.6250 12.03 7.99
1997 -- 15.78 15.7500 10.18 8.32
1996 -- 15.54 15.2500 9.77 6.50
1995 -- 15.60 14.8750 22.78 18.74
<CAPTION>
PREMIER INSURED INCOME
<S> <C> <C> <C> <C> <C>
Year Ended 10/31:
2000 (a) -- 14.21 13.0625 2.97 2.92
1999 (.02) 14.25 13.1250 (17.33) (6.42)
1998 -- 16.18 16.8750 14.06 8.35
1997 -- 15.84 15.6875 12.09 8.56
1996 -- 15.49 14.8750 9.23 5.93
1995 -- 15.53 14.5000 24.14 17.73
<CAPTION>
INSURED PREMIUM INCOME 2
<S> <C> <C> <C> <C> <C>
Year Ended 10/31:
2000 (a) -- 12.49 10.9375 (1.65) 3.71
1999 -- 12.40 11.5000 (11.16) (7.21)
1998 -- 14.10 13.6875 16.35 9.28
1997 -- 13.60 12.4375 15.45 10.15
1996 -- 13.04 11.4380 6.95 5.70
1995 -- 13.03 11.3750 23.46 26.20
<PAGE>
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------------------------
BEFORE CREDIT
--------------------------------------------------------------
RATIO OF NET RATIO OF NET
RATIO OF INVESTMENT RATIO OF INVESTMENT
EXPENSES INCOME EXPENSES INCOME
TO AVERAGE TO AVERAGE TO AVERAGE TO AVERAGE
ENDING NET ASSETS NET ASSETS TOTAL TOTAL
NET APPLICABLE APPLICABLE NET ASSETS NET ASSETS
ASSETS TO COMMON TO COMMON INCLUDING INCLUDING
(000) SHARES++ SHARES++ PREFERRED++ PREFERRED++
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INSURED QUALITY
Year Ended 10/31:
2000 (a) $ 845,366 1.24%* 8.64%* .78%* 5.39%*
1999 845,789 1.19 7.66 .79 5.11
1998 863,179 1.13 7.49 .79 5.21
1997 848,362 1.15 7.88 .79 5.44
1996 839,304 1.17 7.98 .80 5.50
1995 849,583 1.19 8.36 .81 5.73
<CAPTION>
INSURED OPPORTUNITY
<S> <C> <C> <C> <C> <C>
Year Ended 10/31:
2000 (a) 1,829,494 1.21* 8.55* .76* 5.37*
1999 1,835,516 1.16 7.67 .77 5.07
1998 1,892,589 1.13 7.60 .77 5.17
1997 1,861,771 1.15 7.92 .78 5.34
1996 1,837,731 1.16 8.01 .78 5.38
1995 1,841,780 1.19 8.43 .79 5.59
<CAPTION>
PREMIER INSURED INCOME
<S> <C> <C> <C> <C> <C>
Year Ended 10/31:
2000 (a) 434,853 1.26* 8.48* .79* 5.34*
1999 435,631 1.19 7.49 .79 5.01
1998 450,466 1.16 7.29 .79 5.00
1997 443,173 1.17 7.61 .80 5.18
1996 436,134 1.18 7.70 .80 5.22
1995 436,920 1.20 8.05 .81 5.40
<CAPTION>
INSURED PREMIUM INCOME 2
<S> <C> <C> <C> <C> <C>
Year Ended 10/31:
2000 (a) 734,277 1.24* 7.89* .78* 4.99*
1999 730,855 1.21 7.11 .79 4.64
1998 793,862 1.20 6.89 .79 4.53
1997 775,213 1.23 7.55 .80 4.89
1996 754,329 1.36 7.53 .86 4.78
1995 427,908 1.37 8.29 .83 5.07
<PAGE>
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------------------------
AFTER CREDIT***
--------------------------------------------------------------
RATIO OF NET RATIO OF NET
RATIO OF INVESTMENT RATIO OF INVESTMENT
EXPENSES INCOME EXPENSES INCOME
TO AVERAGE TO AVERAGE TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS TOTAL TOTAL
APPLICABLE APPLICABLE NET ASSETS NET ASSETS PORTFOLIO
TO COMMON TO COMMON INCLUDING INCLUDING TURNOVER
SHARES++ SHARES++ PREFERRED++ PREFERRED++ RATE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INSURED QUALITY
Year Ended 10/31:
2000 (a) 1.23%* 8.66%* .77%* 5.40%* 7%
1999 1.18 7.67 .79 5.11 27
1998 1.13 7.49 .79 5.21 16
1997 1.15 7.88 .79 5.44 8
1996 1.17 7.98 .80 5.50 33
1995 1.19 8.36 .81 5.73 30
<CAPTION>
INSURED OPPORTUNITY
<S> <C> <C> <C> <C> <C>
Year Ended 10/31:
2000 (a) 1.20* 8.55* .75* 5.37* 6
1999 1.16 7.67 .77 5.07 26
1998 1.13 7.60 .77 5.17 12
1997 1.15 7.92 .78 5.34 8
1996 1.16 8.01 .78 5.38 18
1995 1.19 8.43 .79 5.59 16
<CAPTION>
PREMIER INSURED INCOME
<S> <C> <C> <C> <C> <C>
Year Ended 10/31:
2000 (a) 1.24* 8.50* .78* 5.35* 10
1999 1.18 7.50 .79 5.01 32
1998 1.16 7.29 .79 5.00 10
1997 1.17 7.61 .80 5.18 4
1996 1.18 7.70 .80 5.22 3
1995 1.20 8.05 .81 5.40 5
<CAPTION>
INSURED PREMIUM INCOME 2
<S> <C> <C> <C> <C> <C>
Year Ended 10/31:
2000 (a) 1.22* 7.90* .77* 5.00* 21
1999 1.21 7.11 .79 4.64 35
1998 1.20 6.89 .79 4.53 31
1997 1.23 7.55 .80 4.89 37
1996 1.36 7.53 .86 4.78 32
1995 1.37 8.29 .83 5.07 30
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Net Asset Value is the
combination of reinvested dividend income, reinvested capital gains
distributions, if any, and changes in net asset value per share. Total
returns are not annualized.
*** After custodian fee credit, where applicable. + The amounts shown are based
on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the six months ended April 30, 2000.
</TABLE>
<PAGE>
Build Your Wealth Automatically
Sidebar text: Nuveen offers a number of convenient ways to add to your portfolio
and earn the tax-free income you need to achieve your financial goals.
Sidebar text: Nuveen makes reinvesting easy. A phone call is all it takes to set
up your reinvestment account.
NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares. If you do not
elect to reinvest distributions, all distributions are paid by check or can be
deposited directly into your bank or brokerage account.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. You'll also potentially benefit from dollar-cost averaging, a
technique of investing at regular intervals, which allows you to build a
high-quality, tax-free portfolio conveniently and cost effectively over time.
Dollar-cost averaging does not ensure a profit, nor does it protect you against
loss in a declining market. Because such a plan involves continuous investment
regardless of fluctuating prices, investors should consider their financial
ability to continue purchases through periods of low price levels.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
Income or capital gains taxes may be payable on dividends or distributions that
are reinvested.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may, of course, change your distribution option or withdraw from the Plan at
any time, should your needs or situation change. Should you withdraw, you can
receive a certificate for all whole shares credited to your reinvestment account
and cash payment for fractional shares, or cash payment for all reinvestment
account shares, less brokerage commissions and a $2.50 service fee.
You can also reinvest if your shares are registered in the name of a brokerage
firm, bank, or other nominee. Just ask your investment advisor if the firm will
participate on your behalf. If not, it's easy to have the shares registered in
your name and to apply for a reinvestment account directly. Participants whose
shares are registered in the name of one firm may not be able to transfer the
shares to another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
<PAGE>
Fund Information
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT
AND SHAREHOLDER SERVICES
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 6-month period ended April 30, 2000. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
Serving Investors
FOR GENERATIONS
PHOTO OF:John Nuveen, Sr.
John Nuveen, Sr.
For over a century, generations of Americans have relied on Nuveen to help them
grow and keep the money they've earned. Financial advisors, investors and their
families have associated Nuveen investments with quality, expertise and
dependability since 1898. That is why financial advisors have entrusted the
assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen investment products and services can help you
preserve your financial security, talk with your financial advisor, or call us
at (800) 257-8787 for more information, including a prospectus where applicable.
Please read that information carefully before you invest.
LOGO: NUVEEN Investments
Invest well. Look ahead. LEAVE YOUR MARK.sm
John Nuveen & Co. Incorporated o 333 West Wacker Drive
Chicago, IL 60606 o www.nuveen.com
FSA-4-4-00
