LOGO: NUVEEN Investments
Annual Report October 31, 2000
Municipal Closed-End
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
Invest well.
Look ahead.
LEAVE YOUR MARK.SM
Photo of: Water.
Photo of: Girl and man sitting by computer.
<PAGE>
Credit Quality
HIGHLIGHTS As of October 31, 2000
PIE CHART:
Nuveen Insured Quality Municipal Fund, Inc. (NQI)
Insured 81%
Insured and U.S. Guaranteed 18%
U.S. Guaranteed 1%
PIE CHART:
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO)
Insured 70%
Insured and U.S. Guaranteed 28%
U.S. Guaranteed 2%
PIE CHART:
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF)
Insured 67%
Insured and U.S. Guaranteed 19%
U.S. Guaranteed 14%
PIE CHART:
Nuveen Insured Premium Income Municipal Fund 2 (NPX)
Insured 89%
Insured and U.S. Guaranteed 10%
U.S. Guaranteed 1%
Contents
1 Dear Shareholder
3 Portfolio Manager's Comments
6 NQI Performance Overview
7 NIO Performance Overview
8 NIF Performance Overview
9 NPX Performance Overview
10 Shareholder Meeting Report
14 Report of Independent Auditors
15 Portfolio of Investments
41 Statement of Net Assets
42 Statement of Operations
43 Statement of Changes in Net Assets
45 Notes to Financial Statements
50 Financial Highlights
52 Build Your Wealth Automatically
53 Fund Information
--------------------------------------------------------------------------------
Compound Your Wealth - Automatically
All Nuveen Municipal Closed-End ETFs let you reinvest dividends and capital
gains directly into additional shares of your Fund. This is a great way to see
your investment grow through the power of compounding.
For more information about Dividend Reinvestment, see the last page of this
report or speak with your financial advisor.
--------------------------------------------------------------------------------
<PAGE>
Photo of: Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: "A well-balanced portfolio can help you reduce your investment
risks."
Dear
SHAREHOLDER
One of the primary goals of your Nuveen Fund is to provide you with attractive,
dependable tax-free income from a quality port-folio. I am pleased to report
that over the past fiscal year your Fund has continued to meet these objectives.
I urge you to read the Portfolio Managers' Comments and Performance Overview
pages included in this report, which provide more details about Fund results,
how they were achieved, and how the Funds are trying to position themselves for
the future.
The uncertain markets of this past reporting period also remind us of another
important reason for investing in Nuveen Funds. In times such as these, your
Nuveen Fund can help bring a measure of diversification to your overall
portfolio and serve as a useful counterbalance to other holdings. A
well-balanced portfolio can help you reduce your investment risks and provide
one of the keys to strong long-term performance.
Invest Well. Look Ahead. Leave Your Mark.
At Nuveen, we believe that investors should focus not only on investments that
can help them accumulate wealth, but also on the plans and services that can
help preserve that wealth and pass it along to future generations. This
long-term perspective is an integral part of our portfolio management
strategies, our insistence on quality, and our desire to provide investments
that can withstand the test of time.
<PAGE>
In establishing a program tailored to your needs, the sound ongoing advice and
disciplined focus provided by a trusted financial advisor can be an invaluable
resource, enabling you to make wise investment decisions and build a program
that can result in a lasting legacy.
For more than a century, Nuveen has offered quality investments to those who
recognize and embrace the need for building, preserving and managing wealth. All
of us at Nuveen are dedicated to working with you and your financial advisor to
provide the services, products, perspectives, and solutions that can help you
meet your personal and family financial goals, now and for years to come. We
thank you for your continued confidence.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
December 15, 2000
Sidebar text: "In establishing a program tailored to your needs, the sound
ongoing advice and disciplined focus provided by a trusted financial advisor can
be an invaluable resource."
<PAGE>
Nuveen National Insured Closed-End Exchange-Traded Funds (NQI, NIO, NIF, NPX)
Portfolio Manager's
COMMENTS
Portfolio manager Steve Krupa talks about the economic environment, recent Fund
performance, and the key investment strategies used to manage the Nuveen
National Insured Closed-End Exchange-Traded Funds. Steve has more than 20 years
of experience as an investment professional at Nuveen and has managed NQI and
NIO since their inceptions in the early 1990s, adding NIF and NPX in 1998.
WHAT MAJOR FACTORS AFFECTED THE U.S. ECONOMY AND THE MUNICIPAL MARKET DURING THE
PAST 12 MONTHS?
The major news affecting the fixed income markets over the past year has been
the Fed tightening policy. In an effort to keep inflation in check, the Federal
Reserve continued to raise interest rates through May 2000, eventually bringing
the federal funds target rate to 6.50%, the highest level in almost a decade.
The Fed's policy has been to try to slow down economic growth without causing a
recession.
There is some recent evidence that their efforts may be having some impact.
While the U.S. economic expansion has reached a record tenth year, several
indicators are pointing to slowing growth. As a result, the Fed now seems to
have put additional rate increases on hold, with some anticipating that the
current tightening cycle may have reached its end.
These Fed rate hikes and hints of an economic slowdown have affected the
municipal bond market, but several supply and demand factors have helped to
prevent a major increase in rates or drop in value. On the supply side,
municipal bond new issue supply for the year 2000 totaled $154 billion
nationwide through October, down 17.5% from 1999 levels. At this rate, the
supply of new municipal bonds could finish 2000 at its lowest level since 1995.
Part of this decline stems from higher rates concerns earlier in the year making
it less attractive for some issuers to offer bonds, and part comes from a
general increase in tax revenues in many cities and states that has allowed
issuers to engage in more pay-as-you-go funding for necessary projects. At the
same time, demand from individual investors looking for diversification and
tax-free income continued to be strong. As a result, municipal bond prices and
yields are now about where they were one year ago.
HOW DID THE NUVEEN NATIONAL INSURED FUNDS PERFORM OVER THE PAST YEAR?
For the fiscal year ended October 31, 2000, these Funds produced total returns
on net asset value (NAV) as shown in the accompanying table. The annual returns
for the Lehman Brothers Insured Municipal Bond Index1 and the Funds' Lipper Peer
Group2 are also presented.
MARKET TOTAL RETURN LEHMAN LIPPER
YIELD ON NAV TOTAL RETURN1 AVERAGE2
----------------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
10/31/00 EQUIVALENT3 10/31/00 10/31/00 10/31/00
----------------------------------------------------------------------
NQI 6.40% 9.28% 10.86% 9.54% 8.97%
----------------------------------------------------------------------
NIO 6.57% 9.52% 9.25% 9.54% 8.97%
----------------------------------------------------------------------
NIF 6.40% 9.28% 9.41% 9.54% 8.97%
----------------------------------------------------------------------
NPX 6.19% 8.97% 11.35% 9.54% 8.97%
----------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
Early in the year, as the Fed's series of interest rate hikes pushed yields
higher, municipal bond prices underwent a corresponding drop. Over the summer,
however, the tight municipal new issue supply and generally favorable technicals
helped prompt a shift in market outlook, rallying the municipal market and
boosting the prices of many bonds. In this recent environment, we would expect
funds with longer durations4 to perform well. As of October 31, 2000, all four
Nuveen funds had durations between 9.5 and 12. By comparison, the duration of
the unleveraged Lehman Brothers Insured Municipal Bond Index was 8.47.
1 The performance of the national insured Nuveen Funds 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 total returns of the Funds are compared with the average annualized
return of the 22 funds in the Lipper Insured Leveraged Municipal Debt Funds
category. Fund and Lipper returns assume reinvestment of dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's market
yield on the indicated date and a federal income tax rate of 31%.
4 Duration is a measure of a Fund's NAV volatility in reaction to interest
rate movements. Fund duration, also known as leverage-adjusted duration,
takes into account the leveraging process for a Fund and therefore is
generally longer than the duration of the actual portfolio of individual
bonds that make up the Fund. Unless otherwise noted, references to duration
in this commentary are intended to indicate Fund duration.
<PAGE>
The Funds' participation in the recovery of the municipal market is reflected in
the total returns on NAV listed in the accompanying table. They show dramatic
improvement over the performance results reported in the Funds' semiannual
report. As of October 31, 2000, long-term municipal yields were more than 99% of
30-year Treasury yields, compared with the historical average of 86% for the
period 1986-1999.
WERE THE FUNDS' DIVIDENDS AFFECTED BY THE MARKET ENVIRONMENT?
All four of these Funds use leverage as a way to potentially enhance the
dividends paid to common shareholders. The extent of this benefit, however, is
tied in part to the short-term rates that the Funds pay their MuniPreferred(R)
shareholders. When short-term rates rise, the Funds must pay out more income to
preferred shareholders, decreasing the amount of income available for common
shareholders. As the Federal Reserve raised short-term rates six times between
June 1999 and May 2000, these increases had a corresponding impact on short-term
municipal rates, which led to decreases in the common share dividends of each of
these Funds over the past year. Despite these dividend adjustments, all of the
Funds continued to provide competitive market yields, as shown in the
accompanying table.
Recently, investor demand for municipal bonds with shorter maturities has caused
the slope of the municipal yield curve to become very steep. The increased
demand for short-maturity bonds could have beneficial effects on the dividend
stability of these leveraged Funds going forward by holding short-term rates
down and reducing the amount the Funds pay their MuniPreferred shareholders.
WHAT ABOUT THE FUNDS' SHARE PRICE PERFORMANCE?
During late 1999 and the first half of 2000, uncertainties about inflation and
interest rates, coupled with investors' focus on equity market performance,
tended to dampen interest in most fixed-income products. The lack of demand put
pressure on the prices of many municipal bond investments, including these
Nuveen Funds. In recent months, as the bond market has begun to show signs of
recovery and the stock market has continued to be volatile, we believe many
investors again are looking at tax-free fixed-income alternatives.
However, investor interest in this opportunity continued to lag the rise in
value of the bonds held by the Funds. As a result, all of these Funds saw their
discounts (share price below NAV) widen over the past 12 months, although this
widening was slight in NQI and NIF. With the market prices of these Funds 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 their
Nuveen Funds.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN NATIONAL INSURED FUNDS DURING
THE FISCAL YEAR ENDED OCTOBER 31, 2000?
Despite a slow start, the past fiscal year turned out to be generally positive
for the fixed-income markets, including municipal bonds. During this period, we
focused on strengthening the Funds' long-term dividend-paying capabilities,
extending call protection, enhancing tax efficiency, and finding value in
specific areas of the market, including transportation and healthcare.
For example, we took opportunities early in 2000 to improve the Funds' tax
efficiency by selling some lower-yielding bonds for modest capital losses and
reinvesting the proceeds in bonds offering higher tax-free income. This enhanced
the Funds' tax efficiency by giving us capital losses with which to offset
current and future
<PAGE>
realized capital gains, and also strengthened the Funds' future income stream
and call protection.
We also found value in the transportation sector, increasing our allocations
across all four Funds during the past 12 months. As of October 31, 2000,
transportation represented the largest sector weighting in both NQI (21%) and
NPX (17%) and ranked among the top five sectors in NIO (13%) and NIF (10%). One
of the transportation issues recently added to NQI, NIO, and NPX were bonds
issued by the Nevada Department of Business and Industry for the proposed Las
Vegas monorail that would link six hotels in that city. These bonds, which were
insured by AMBAC, were purchased at a 5.84% yield in September, when the yield
on the 30-year Treasury bond was 5.90%. This meant that the tax-free yields on
the Las Vegas monorail bonds were 99% of Treasury yields, enhancing the Funds'
income streams. In addition, the Funds should benefit from the 10 years of call
protection offered by these bonds.
The assets of the four insured Funds are 100% invested in U.S. government
guaranteed and/or insured bonds, making credit quality extremely high. Over the
past year, as credit spreads widened, the prices of these bonds have performed
very well compared with those of lower-rated bonds. This has helped the
performance of the insured funds.
WHAT IS YOUR OUTLOOK FOR THE NUVEEN NATIONAL INSURED FUNDS?
In general, our outlook for the fixed-income markets over the next 12 months is
positive. Current projections call for continued strong demand for municipal
bonds, while new municipal issuance nationwide in 2001 is expected to stay under
$200 billion. These demand and supply dynamics should continue to provide
support for the municipal market and municipal bond prices.
Looking specifically at the Nuveen National Insured Funds, NIF and NPX currently
offer excellent levels of call protection, with less than 5% of their portfolios
subject to calls between now and the end of 2001. In December 2001, NIF will
reach the 10-year point of the bond market cycle, a period when the potential
for bond calls normally increases. In 2002, calls could affect as much as 35% of
NIF's portfolio. Over the next 12 months, NQI and NIO will also reach their
10-year anniversaries, and these Funds could potentially face calls affecting
21% and 22% of their portfolios, respectively, in 2001. Shareholders should
note, however, that the interest rate environment over the next year will play a
major role in whether many of these bonds are actually called.
While we cannot control the direction of interest rates, we will continue to
work to improve the Funds' call protection and to actively manage the Funds in
an effort to mitigate the longer-term effects of the bond call process. In 2001,
the Funds' tax loss carryforwards will enable us to continue to pursue active
management without the likelihood of large taxable distributions. We believe the
Nuveen National Insured Funds continue to serve as a dependable source of
tax-free income and portfolio diversification, two essential elements of a
comprehensive investment strategy.
<PAGE>
Nuveen Insured Quality Municipal Fund, Inc.
Performance
OVERVIEW As of October 31, 2000
NQI
PORTFOLIO STATISTICS
--------------------------------------------------
Inception Date 12/90
--------------------------------------------------
Share Price $13 11/16
--------------------------------------------------
Net Asset Value $14.51
--------------------------------------------------
Market Yield 6.40%
--------------------------------------------------
Taxable-Equivalent Yield1 9.28%
--------------------------------------------------
Fund Net Assets ($000) $867,120
--------------------------------------------------
Average Effective Maturity (Years) 20.91
--------------------------------------------------
Leverage-Adjusted Duration 11.99
--------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 10.94% 10.86%
--------------------------------------------------
5-Year 5.00% 5.05%
--------------------------------------------------
Since Inception 5.91% 7.26%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------
Transportation 21%
--------------------------------------------------
U.S.Guaranteed 19%
--------------------------------------------------
Healthcare 19%
--------------------------------------------------
Utilities 14%
--------------------------------------------------
Tax Obligation/Limited 10%
--------------------------------------------------
BAR CHART:
1999-2000 Monthly Tax-Free Dividends Per Share
11/99 0.0765
12/99 0.0765
1/00 0.0765
2/00 0.0765
3/00 0.0765
4/00 0.0765
5/00 0.0765
6/00 0.073
7/00 0.073
8/00 0.073
9/00 0.073
10/00 0.073
LINE CHART:
Share Price Performance
11/5/99 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
13.38
13.5
12.88
12.94
13.31
13.38
13.25
13.13
13.19
13.13
13.69
13.5
13.63
13.75
13.81
13.75
14.06
13.81
14
14.06
13.63
13.44
13.56
13.63
13.19
13.31
10/31/00 13.63
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%.
<PAGE>
Nuveen Insured Municipal Opportunity Fund, Inc.
Performance
OVERVIEW As of October 31, 2000
NIO
PORTFOLIO STATISTICS
--------------------------------------------------
Inception Date 9/91
--------------------------------------------------
Share Price $13 1/16
--------------------------------------------------
Net Asset Value $14.64
--------------------------------------------------
Market Yield 6.57%
--------------------------------------------------
Taxable-Equivalent Yield1 9.52%
--------------------------------------------------
Fund Net Assets ($000) $1,866,701
--------------------------------------------------
Average Effective Maturity (Years) 18.29
--------------------------------------------------
Leverage-Adjusted Duration 9.94
--------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 5.06% 9.25%
--------------------------------------------------
5-Year 3.95% 5.20%
--------------------------------------------------
Since Inception 5.07% 7.02%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------
U.S. Guaranteed 31%
--------------------------------------------------
Healthcare 15%
--------------------------------------------------
Transportation 13%
--------------------------------------------------
Utilities 12%
--------------------------------------------------
Water and Sewer 11%
--------------------------------------------------
BAR CHART:
1999-2000 Monthly Tax-Free Dividends Per Share
11/99 0.0775
12/99 0.0745
1/00 0.0745
2/00 0.0745
3/00 0.0745
4/00 0.0745
5/00 0.0745
6/00 0.0715
7/00 0.0715
8/00 0.0715
9/00 0.0715
10/00 0.0715
LINE CHART:
Share Price Performance
11/5/99 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
12.5
12.5
12.19
12.06
12.31
12.44
12.31
12.56
12.63
13
13
12.94
12.88
13.13
13.38
13.5
13.5
13.56
13.44
13.56
13.38
13
13.06
12.94
12.94
12.81
10/31/00 12.81
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%.
<PAGE>
Nuveen Premier Insured Municipal Income Fund, Inc.
Performance
OVERVIEW As of October 31, 2000
NIF
PORTFOLIO STATISTICS
--------------------------------------------------
Inception Date 12/91
--------------------------------------------------
Share Price $13 1/2
--------------------------------------------------
Net Asset Value $14.66
--------------------------------------------------
Market Yield 6.40%
--------------------------------------------------
Taxable-Equivalent Yield1 9.28%
--------------------------------------------------
Fund Net Assets ($000) $443,544
--------------------------------------------------
Average Effective Maturity (Years) 16.28
--------------------------------------------------
Leverage-Adjusted Duration 10.08
--------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 9.92% 9.41%
--------------------------------------------------
5-Year 4.87% 4.99%
--------------------------------------------------
Since Inception 5.10% 6.69%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------
U.S. Guaranteed 33%
--------------------------------------------------
Tax Obligation/Limited 17%
--------------------------------------------------
Utilities 17%
--------------------------------------------------
Healthcare 13%
--------------------------------------------------
Transportation 10%
--------------------------------------------------
BAR CHART:
1999-2000 Monthly Tax-Free Dividends Per Share
11/99 0.075
12/99 0.075
1/00 0.075
2/00 0.075
3/00 0.075
4/00 0.075
5/00 0.075
6/00 0.072
7/00 0.072
8/00 0.072
9/00 0.072
10/00 0.072
LINE CHART:
Share Price Performance
11/5/99 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
13.06
13.31
12.81
12.56
13
13.19
12.88
12.81
12.88
12.81
13.31
13.13
13.06
13.06
13.13
13.44
13.5
13.5
13.81
13.81
13.63
13.5
13.69
13.56
13.19
13
10/31/00 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%.
<PAGE>
Nuveen Insured Premium Income Municipal Fund 2
Performance
OVERVIEW As of October 31, 2000
NPX
PORTFOLIO STATISTICS
--------------------------------------------------
Inception Date 7/93
--------------------------------------------------
Share Price $11 1/4
--------------------------------------------------
Net Asset Value $13.05
--------------------------------------------------
Market Yield 6.19%
--------------------------------------------------
Taxable-Equivalent Yield1 8.97%
--------------------------------------------------
Fund Net Assets ($000) $754,909
--------------------------------------------------
Average Effective Maturity (Years) 18.56
--------------------------------------------------
Leverage-Adjusted Duration 11.12
--------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 4.35% 11.35%
--------------------------------------------------
5-Year 5.90% 5.62%
--------------------------------------------------
Since Inception 2.03% 4.59%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------
Transportation 17%
--------------------------------------------------
Utilities 16%
--------------------------------------------------
Tax Obligation/Limited 15%
--------------------------------------------------
Healthcare 14%
--------------------------------------------------
U.S. Guaranteed 11%
--------------------------------------------------
BAR CHART:
1999-2000 Monthly Tax-Free Dividends Per Share
11/99 0.0605
12/99 0.0605
1/00 0.0605
2/00 0.0605
3/00 0.0605
4/00 0.0605
5/00 0.0605
6/00 0.058
7/00 0.058
8/00 0.058
9/00 0.058
10/00 0.058
LINE CHART:
Share Price Performance
11/5/99 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
10.94
10.75
10.56
10.63
10.5
11
11.06
10.81
10.81
11.19
11.44
11.38
11.13
11.19
11.25
11.56
11.38
11.5
11.69
11.63
11.38
11.31
11.38
11.19
11.25
11.06
10/31/00 11.25
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%.
<PAGE>
Shareholder
Meeting Report
The annual shareholder meeting was held on July 26, 2000, at the Northern Trust
Bank, Chicago, Illinois.
<TABLE>
<CAPTION>
NQI
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Shares Shares
Shares Series-M Series-T Series-W Series-TH Series-F
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner
<S> <C> <C> <C> <C> <C> <C>
For 32,635,391 2,335 2,280 2,166 2,199 2,447
Withhold 405,881 -- 2 1 -- 17
------------------------------------------------------------------------------------------------------------------------------------
Total 33,041,272 2,335 2,282 2,167 2,199 2,464
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown
For 32,626,988 2,335 2,280 2,166 2,199 2,446
Withhold 414,284 -- 2 1 -- 18
------------------------------------------------------------------------------------------------------------------------------------
Total 33,041,272 2,335 2,282 2,167 2,199 2,464
------------------------------------------------------------------------------------------------------------------------------------
Anne E. Impellizzeri
For 32,609,382 2,335 2,280 2,166 2,199 2,446
Withhold 431,890 -- 2 1 -- 18
------------------------------------------------------------------------------------------------------------------------------------
Total 33,041,272 2,335 2,282 2,167 2,199 2,464
------------------------------------------------------------------------------------------------------------------------------------
Peter R. Sawers
For 32,618,396 2,335 2,280 2,166 2,199 2,446
Withhold 422,876 -- 2 1 -- 18
------------------------------------------------------------------------------------------------------------------------------------
Total 33,041,272 2,335 2,282 2,167 2,199 2,464
------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale
For 32,615,599 2,335 2,280 2,166 2,199 2,447
Withhold 425,673 -- 2 1 -- 17
------------------------------------------------------------------------------------------------------------------------------------
Total 33,041,272 2,335 2,282 2,167 2,199 2,464
------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider
For -- 2,335 2,280 2,166 2,199 2,447
Withhold -- -- 2 1 -- 17
------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,335 2,282 2,167 2,199 2,464
------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger
For -- 2,335 2,280 2,166 2,199 2,447
Withhold -- -- 2 1 -- 17
------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,335 2,282 2,167 2,199 2,464
------------------------------------------------------------------------------------------------------------------------------------
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 32,452,640 2,333 2,277 2,163 2,199 2,451
Against 150,765 -- -- -- -- 1
Abstain 437,867 2 5 4 -- 12
------------------------------------------------------------------------------------------------------------------------------------
Total 33,041,272 2,335 2,282 2,167 2,199 2,464
------------------------------------------------------------------------------------------------------------------------------------
<PAGE>
NIO
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Shares Shares Shares Shares
Shares Series-M Series-T Series-W Series-W2 Series-TH1 Series-TH2 Series-F
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner
<S> <C> <C> <C> <C> <C> <C> <C> <C>
For 72,162,105 3,777 2,943 3,453 3,122 3,452 3,535 3,417
Withhold 891,959 10 15 31 -- 1 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 73,054,064 3,787 2,958 3,484 3,122 3,453 3,535 3,417
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown
For 72,176,686 3,777 2,943 3,453 3,122 3,452 3,535 3,417
Withhold 877,378 10 15 31 -- 1 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 73,054,064 3,787 2,958 3,484 3,122 3,453 3,535 3,417
------------------------------------------------------------------------------------------------------------------------------------
Anne E. Impellizzeri
For 72,121,689 3,777 2,943 3,453 3,122 3,452 3,535 3,417
Withhold 932,375 10 15 31 -- 1 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 73,054,064 3,787 2,958 3,484 3,122 3,453 3,535 3,417
------------------------------------------------------------------------------------------------------------------------------------
Peter R. Sawers
For 72,164,337 3,777 2,943 3,453 3,122 3,452 3,535 3,417
Withhold 889,727 10 15 31 -- 1 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 73,054,064 3,787 2,958 3,484 3,122 3,453 3,535 3,417
------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale
For 72,128,235 3,777 2,935 3,453 3,122 3,452 3,535 3,416
Withhold 925,829 10 23 31 -- 1 -- 1
------------------------------------------------------------------------------------------------------------------------------------
Total 73,054,064 3,787 2,958 3,484 3,122 3,453 3,535 3,417
------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider
For -- 3,777 2,943 3,453 3,122 3,452 3,535 3,417
Withhold -- 10 15 31 -- 1 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,787 2,958 3,484 3,122 3,453 3,535 3,417
------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger
For -- 3,777 2,943 3,453 3,122 3,452 3,535 3,417
Withhold -- 10 15 31 -- 1 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,787 2,958 3,484 3,122 3,453 3,535 3,417
------------------------------------------------------------------------------------------------------------------------------------
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 71,997,742 3,781 2,941 3,464 3,122 3,452 3,534 3,371
Against 353,016 -- -- 1 -- -- -- --
Abstain 703,306 6 17 19 -- 1 1 46
------------------------------------------------------------------------------------------------------------------------------------
Total 73,054,064 3,787 2,958 3,484 3,122 3,453 3,535 3,417
------------------------------------------------------------------------------------------------------------------------------------
<PAGE>
Shareholder Meeting Report (continued)
The annual shareholder meeting was held on July 26, 2000, at the
Northern Trust Bank, Chicago, Illinois.
NIF
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred
Common Shares Shares Shares
Shares Series-W Series-TH Series-F
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner
<S> <C> <C> <C> <C>
For 16,899,080 810 2,349 2,703
Withhold 166,642 24 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 17,065,722 834 2,349 2,703
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown
For 16,895,338 810 2,349 2,703
Withhold 170,384 24 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 17,065,722 834 2,349 2,703
------------------------------------------------------------------------------------------------------------------------------------
Anne E. Impellizzeri
For 16,890,831 810 2,349 2,703
Withhold 174,891 24 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 17,065,722 834 2,349 2,703
------------------------------------------------------------------------------------------------------------------------------------
Peter R. Sawers
For 16,894,078 810 2,349 2,703
Withhold 171,644 24 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 17,065,722 834 2,349 2,703
------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale
For 16,895,830 810 2,349 2,703
Withhold 169,892 24 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 17,065,722 834 2,349 2,703
------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider
For -- 810 2,349 2,703
Withhold -- 24 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 834 2,349 2,703
------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger
For -- 810 2,349 2,703
Withhold -- 24 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 834 2,349 2,703
------------------------------------------------------------------------------------------------------------------------------------
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 16,822,251 804 2,336 2,695
Against 63,218 6 3 --
Abstain 180,253 24 10 8
------------------------------------------------------------------------------------------------------------------------------------
Total 17,065,722 834 2,349 2,703
------------------------------------------------------------------------------------------------------------------------------------
<PAGE>
NPX
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE TRUSTEES WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Shares Shares
Shares Series-M Series-T Series-W Series-TH Series-F
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner
<S> <C> <C> <C> <C> <C> <C>
For 33,834,011 1,941 1,423 1,779 1,653 2,079
Withhold 406,879 4 -- -- 1 3
------------------------------------------------------------------------------------------------------------------------------------
Total 34,240,890 1,945 1,423 1,779 1,654 2,082
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown
For 33,831,861 1,941 1,423 1,779 1,653 2,079
Withhold 409,029 4 -- -- 1 3
------------------------------------------------------------------------------------------------------------------------------------
Total 34,240,890 1,945 1,423 1,779 1,654 2,082
------------------------------------------------------------------------------------------------------------------------------------
Anne E. Impellizzeri
For 33,814,759 1,941 1,423 1,779 1,653 2,079
Withhold 426,131 4 -- -- 1 3
------------------------------------------------------------------------------------------------------------------------------------
Total 34,240,890 1,945 1,423 1,779 1,654 2,082
------------------------------------------------------------------------------------------------------------------------------------
Peter R. Sawers
For 33,834,023 1,941 1,423 1,779 1,653 2,079
Withhold 406,867 4 -- -- 1 3
------------------------------------------------------------------------------------------------------------------------------------
Total 34,240,890 1,945 1,423 1,779 1,654 2,082
------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale
For 33,808,390 1,941 1,423 1,779 1,653 2,079
Withhold 432,500 4 -- -- 1 3
------------------------------------------------------------------------------------------------------------------------------------
Total 34,240,890 1,945 1,423 1,779 1,654 2,082
------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider
For -- 1,941 1,423 1,779 1,653 2,079
Withhold -- 4 -- -- 1 3
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,945 1,423 1,779 1,654 2,082
------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger
For -- 1,941 1,423 1,779 1,653 2,079
Withhold -- 4 -- -- 1 3
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,945 1,423 1,779 1,654 2,082
------------------------------------------------------------------------------------------------------------------------------------
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 33,797,352 1,945 1,423 1,660 1,652 2,082
Against 118,266 -- -- -- 2 --
Abstain 325,272 -- -- 119 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 34,240,890 1,945 1,423 1,779 1,654 2,082
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Report of
INDEPENDENT AUDITORS
THE BOARD OF DIRECTORS/TRUSTEES AND SHAREHOLDERS
NUVEEN INSURED QUALITY MUNICIPAL FUND, INC.
NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC.
NUVEEN PREMIER INSURED MUNICIPAL INCOME FUND, INC.
NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND 2
We have audited the accompanying statements of net assets, including the
portfolios of investments, of Nuveen Insured Quality Municipal Fund, Inc.,
Nuveen Insured Municipal Opportunity Fund, Inc., Nuveen Premier Insured
Municipal Income Fund, Inc. and Nuveen Insured Premium Income Municipal Fund 2
as of October 31, 2000, and the related statements of operations, changes in net
assets and the financial highlights for the years indicated therein. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of investments
owned as of October 31, 2000, by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Insured Quality Municipal Fund, Inc., Nuveen Insured Municipal
Opportunity Fund, Inc., Nuveen Premier Insured Municipal Income Fund, Inc. and
Nuveen Insured Premium Income Municipal Fund 2 at October 31, 2000, and the
results of their operations, changes in their net assets and financial
highlights for the years indicated therein in conformity with accounting
principles generally accepted in the United States.
/s/Ernst &Young LLP
Chicago, Illinois
December 18, 2000
<PAGE>
Nuveen Insured Quality Municipal Fund, Inc. (NQI)
Portfolio of
INVESTMENTS October 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ALABAMA - 1.0%
$ 8,500 The Special Care Facilities Financing Authority of the City of 1/01 at 100 AAA $ 8,517,340
Birmingham, Alabama (Medical Center East), Health Care Facility
Revenue Refunding Bonds, Series 1986, 7.250%, 7/01/15
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 4.8%
5,000 Civic Improvement Corporation, Phoenix (Arizona), Wastewater 7/03 at 102 AAA 5,300,200
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 (Arizona), 7/01 at 102 AAA 10,331,400
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 3,167,044
6,980 6.250%, 7/01/08 7/02 at 102 AAA 7,292,774
15,250 City of Tucson, Arizona, Water System Revenue Bonds, 7/01 at 102 AAA 15,825,383
Series 1991, 7.100%, 7/01/18 (Pre-refunded to 7/01/01)
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 2.1%
9,345 Arkansas Development Finance Authority, Single Family 7/05 at 102 AAA 9,616,472
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+ 6,544,640
2,250 8.000%, 1/01/21 (Alternative Minimum Tax) 1/01 at 102 AAA 2,305,418
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 8.0%
8,805 Alameda County Public Facilities Corporation, California, 9/06 at 102 AAA 9,305,916
Certificates of Participation (1991 Financing Project),
6.000%, 9/01/21
12,695 Antioch Area Public Facilities Financing Agency, Community 8/02 at 102 AAA 12,346,141
Facilities District No. 1989-1, Special Tax Bonds, Series 1993,
5.000%, 8/01/18
13,175 California Pollution Control Financing Authority, Pollution 9/09 at 101 AAA 13,179,216
Control 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 5,773,900
San Diego, California, Certificates of Participation, The Salk
Institute for Biological Studies, 6.200%, 7/01/24
50,000 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 20 3/16 AAA 5,665,500
Toll Road Refunding Revenue Bonds, Series 1999,
0.000%, 1/15/37
5,000 Inland Empire Solid Waste Financing Authority, Revenue 8/06 at 102 AAA 5,476,000
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 10,745,607
California, Proposition A Sales Tax Revenue Refunding Bonds,
Series 1993-A, 5.000%, 7/01/21
6,760 Ontario Redevelopment Financing Authority (San Bernardino 8/03 at 102 AAA 6,903,718
County, California) 1993 Revenue Bonds (Ontario
Redevelopment Project No. 1), 5.850%, 8/01/22
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.5%
490 Adams County, Colorado, Single Family Revenue Refunding 6/01 at 103 AAA 499,477
Bonds, 1991 Series A-2, 8.700%, 6/01/12
5,630 E-470 Public Highway Authority, Arapahoe County, 8/05 at 103 AAA 5,866,404
Colorado, Capital Improvement Trust Fund Highway
Revenue Bonds (E-470 Project), Vehicle Registration Fee
Bonds, 6.150%, 8/31/26
4,500 Colorado Health Facilities Authority, Revenue Bonds, 6/08 at 101 AAA 4,052,790
Series 1998 (Sisters of Charity of Leavenworth Health Services
Corporation), 5.000%, 12/01/25
<PAGE>
Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued)
Portfolio of INVESTMENTS October 31, 2000
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
COLORADO (continued)
$ 29,250 City and County of Denver, Colorado, Airport System Revenue 11/08 at 101 AAA $ 25,991,843
Bonds, Series 1998B, 5.000%, 11/15/25
(Alternative Minimum Tax)
60,000 E-470 Public Highway Authority (Colorado), Senior Revenue 9/10 at 31 13/32 AAA 10,504,200
Bonds, Series 2000A and Series 2000B, 0.000%, 9/01/28
360 Jefferson County, Colorado, Single Family Revenue Refunding 4/01 at 103 AAA 372,276
Bonds, Series 1991A, 8.875%, 10/01/13
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.8%
17,000 Washington Convention Center Authority (Washington, D.C.), 10/08 at 101 AAA 15,643,400
Senior Lien Dedicated Tax Revenue Bonds, Series 1998,
5.000%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 0.9%
7,990 Florida Housing Finance Agency, Single Family Mortgage 7/04 at 102 AAA 8,235,533
Revenue Bonds, 1994 Series B, 6.650%, 7/01/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 4.6%
State of Hawaii, Airport System Revenue Bonds, Refunding
Series 2000B:
8,785 6.625%, 7/01/18 (Alternative Minimum Tax) 7/10 at 101 AAA 9,579,867
7,000 6.000%, 7/01/19 (Alternative Minimum Tax) 7/10 at 101 AAA 7,196,490
6,130 Department of Budget and Finance of the State of Hawaii, 12/02 at 102 AAA 6,346,144
Special Purpose Revenue Bonds (Hawaiian 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 16,850,176
Special Purpose Revenue Bonds (Hawaii Electric Company,
Inc. and Subsidiaries Project), Series 1996A, 6.200%, 5/01/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 11.3%
5,000 Central Lake County Joint Action Water Agency, Illinois, 5/01 at 102 AAA 5,164,100
Water Revenue Bonds, Series 1991, 7.000%, 5/01/20
(Pre-refunded to 5/01/01)
10,000 City of Chicago (Illinois), General Obligation Bonds, Project 7/05 at 102 AAA 10,805,900
Series 1995, 6.125%, 1/01/16 (Pre-refunded to 7/01/05)
10,200 City of Chicago (Illinois), Chicago Midway Airport, Revenue 1/09 at 101 AAA 9,049,440
Bonds, Series 1998B, 5.000%, 1/01/35
6,000 City of Chicago (Illinois), Chicago-O'Hare International Airport, 1/05 at 102 AAA 6,402,840
General Airport Second Lien Revenue Refunding Bonds,
1994 Series A, 6.375%, 1/01/12
9,500 City of Chicago (Illinois), Chicago-O'Hare International Airport, 1/10 at 101 AAA 9,457,630
General 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 1/01 at 100 AAA 6,431,411
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 7,185,770
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 7,962,835
(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 2,705,802
8,875 5.000%, 7/01/24 7/07 at 101 AAA 8,014,036
25,000 Illinois Health Facilities Authority, Revenue Bonds, 2/10 at 101 AAA 25,093,250
Series 2000 (Iowa Health System), 5.875%, 2/15/30
140 City of Moline, Illinois, City of Rock Island, Illinois, City 2/01 at 102 AAA 142,544
of Urbana, Illinois, Single Family Mortgage Revenue
Bonds (GNMA Mortgage-Backed Securities Program),
Series 1990, 8.050%, 8/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.9%
6,000 Jasper County, Indiana, Collateralized Pollution Control 7/01 at 102 AAA 6,204,180
Refunding Revenue Bonds (Northern Indiana Public Service
Company Project), Series 1991, 7.100%, 7/01/17
4,230 City of Rockport, Indiana, Pollution Control Revenue Refunding 3/01 at 102 AAA 4,351,020
Bonds (Indiana Michigan Power Company Project), Series B,
7.600%, 3/01/16
<PAGE>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INDIANA (continued)
$ 10,000 Hospital Authority of St. Joseph County (Indiana), Fixed 8/01 at 102 AAA $ 10,397,300
Rate 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 2/08 at 101 AAA 4,120,250
System Bonds, Series 1998A (Memorial Health System),
4.625%, 8/15/28
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.0%
5,305 Mason City, Iowa, Hospital Revenue Bonds (Sisters of 8/01 at 102 AAA 5,515,768
Mercy Health Corporation), 1991 Series L, 7.000%, 8/15/21
(Pre-refunded to 8/15/01)
3,460 Iowa City, Johnson County, Iowa, Sewer Revenue Bonds, 7/09 at 100 Aaa 3,402,391
5.500%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 2.1%
Kentucky Economic Development Finance Authority, Health
System Revenue Bonds, Norton Healthcare Inc., Series 2000C:
6,345 0.000%, 10/01/27 10/13 at 101 AAA 4,756,847
18,185 0.000%, 10/01/28 10/13 at 101 AAA 13,552,917
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.2%
13,170 City of New Orleans, Louisiana, General Obligation Refunding 10/05 at 101 AAA 13,686,659
Bonds, Series 1995, 6.200%, 10/01/21
4,915 Orleans Levee District (A Political Subdivision of the State 12/05 at 103 AAA 5,162,470
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 8,153,840
Revenue Bonds, Series 1999B, 6.000%, 7/01/29
12,020 Maine State Housing Authority, Mortgage Purchase 5/01 at 102 AAA 12,339,011
Bonds, 1991 Series A, 7.400%, 11/15/22
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.4%
13,500 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102 AAA 12,011,355
System Revenue Bonds, 1997 Series A (Senior), 5.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.2%
15,500 Michigan State Hospital Finance Authority, Revenue and 5/08 at 101 AAA 14,209,935
Refunding Bonds (St. John Health System), Series 1998A,
5.000%, 5/15/28
4,750 Michigan Strategic Fund, Limited Obligation Refunding 9/09 at 102 AAA 4,586,173
Revenue Bonds (The Detroit Edison Company Pollution
Control Bonds Project), Collateralized Series 1999A,
5.550%, 9/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.1%
846 City of St. Louis Park, Minnesota, Single Family Residential 4/01 at 102 Aaa 865,060
Mortgage Revenue Refunding Bonds (GNMA Mortgage-Backed
Securities Program), Series 1991-A, 7.250%, 4/20/23
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 2.3%
2,545 Wastewater Management District, Harrison County No Opt. Call AAA 3,314,863
(Mississippi), Wastewater Treatment Facilities Revenue
Refunding Bonds, Series 1991A, 8.500%, 2/01/13
2,715 Wastewater Management District, Harrison County No Opt. Call AAA 3,376,130
(Mississippi), Wastewater Treatment Facilities Revenue
Refunding Bonds, Series 1991B, 7.750%, 2/01/14
3,165 Mississippi Housing Finance Corporation, Single Family 4/01 at 101 AAA 3,201,113
Mortgage Purchase Revenue Bonds, Series 1989 (GNMA
Mortgage-Backed Securities Program), 8.250%, 10/15/18
(Alternative Minimum Tax)
8,700 Mississippi Home Corporation, Single Family Mortgage 6/06 at 105 Aaa 9,760,530
Revenue Bonds, Series 1996C, 7.600%, 6/01/29
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.6%
5,000 St. Louis Municipal Finance Corporation, City Justice 2/06 at 102 AAA 5,182,900
Center, Leasehold Revenue Improvement Bonds,
Series 1996A (City of St. Louis, Missouri, Lessee),
6.000%, 2/15/19
<PAGE>
Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued)
Portfolio of INVESTMENTS October 31, 2000
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NEVADA - 5.7%
$ 38,450 Director of the State of Nevada, Department of Business 1/10 at 100 AAA $ 36,296,800
and Industry, Las Vegas Monorail Project Revenue Bonds,
1st Tier Series 2000, 5.375%, 1/01/40
13,185 Washoe County, Nevada, Hospital Refunding Revenue Bonds 6/04 at 102 AAA 13,437,361
(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, 7/04 at 102 AAA 4,029,675
Revenue 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, 1/01 at 105 AAA 5,253,150
Series 1995A, 6.600%, 7/01/16 (Alternative Minimum Tax)
6,000 City of Farmington, New Mexico, Pollution Control 4/01 at 102 A+ 6,170,160
Refunding 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 1/01 at 102 AAA 3,937,126
Housing Refunding Revenue Bonds, 1990 Series A
(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 6,079,993
6.300%, 6/01/24 (Pre-refunded to 6/01/04)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 11.6%
The City of New York, New York, General Obligation Bonds, Fiscal
1991 Series A:
2,000 8.000%, 3/15/11 3/01 at 100 3/4 AAA 2,039,900
6,000 7.250%, 3/15/19 3/01 at 100 3/4 AAA 6,102,180
17,700 New York City Housing Development Corporation, 6/01 at 102 AAA 18,280,383
Multi-Unit Mortgage Refunding Bonds (FHA-Insured Mortgage
Loans), 1991 Series A, 7.250%, 6/01/19
10,335 New York City Municipal Water Finance Authority, Water 6/05 at 101 AAA 11,074,676
and Sewer System Revenue Bonds, Fiscal 1996 Series A,
6.000%, 6/15/25 (Pre-refunded to 6/15/05)
11,760 Dormitory Authority of the State of New York, Court 5/10 at 101 AAA 11,893,123
Facilities Lease Revenue Bonds (The City of New York Issue),
Series 1999, 5.750%, 5/15/30
Dormitory Authority of the State of New York, The New York
Hospital Medical Center of Queens, FHA-Insured Mortgage Hospital
Revenue Bonds, Series 1999:
4,400 5.550%, 8/15/29 8/09 at 101 AAA 4,303,728
10,000 5.600%, 2/15/39 8/09 at 101 AAA 9,775,500
7,000 New York State Energy Research and Development Authority, 7/05 at 102 A+ 7,196,980
Facilities Refunding Revenue Bonds, Series 1995 A (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 12,241,819
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 4,165,812
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 13,336,080
New York Hospital FHA-Insured Mortgage Revenue Bonds,
Series 1994A, 6.900%, 8/15/34 (Pre-refunded to 2/15/05)
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.6%
13,720 North Carolina Medical Care Commission, Hospital Revenue 12/08 at 101 AAA 11,815,527
Bonds (Pitt County Memorial Hospital), Series 1998A,
4.750%, 12/01/28
2,360 North Carolina Medical Care Commission, Hospital Revenue 12/08 at 101 AAA 2,011,475
Bonds (Pitt County Memorial Hospital), Series 1998B,
4.750%, 12/01/28
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 2.5%
21,075 Mercer County, North Dakota, Pollution Control Refunding 1/05 at 102 AAA 21,778,062
Revenue Bonds, Second 1995 Series (Basin Electric Power
Cooperative - Antelope Valley Unit 1 and Common Facilities),
6.050%, 1/01/19
<PAGE>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OHIO - 0.6%
$ 5,000 County of Lorain, Ohio, Health Facilities Revenue Bonds, 9/09 at 102 AAA $ 4,869,200
Series 1999A (Catholic Healthcare Partners), 5.500%, 9/01/29
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.1%
785 Oklahoma Housing Finance Agency, Single Family Mortgage 3/01 at 102 AAA 801,885
Revenue Bonds, 1991 Series A, 7.200%, 3/01/11
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.4%
4,000 Oregon Health Sciences University, Insured Revenue Bonds, 7/06 at 102 AAA 3,749,240
1995 Series B, 5.250%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.9%
7,000 County of Allegheny, Pennsylvania, Airport Revenue Refunding 1/08 at 101 AAA 6,763,050
Bonds, Series 1997A (Pittsburgh International Airport),
5.250%, 1/01/16 (Alternative Minimum Tax)
7,250 Lehigh County Industrial Development Authority, 8/05 at 102 AAA 7,494,688
Pollution Control Revenue Refunding Bonds, 1995 Series A
(Pennsylvania Power and Light Company Project),
6.150%, 8/01/29
14,190 City of Philadelphia, Pennsylvania, Water and Sewer 8/01 at 102 AAA 14,743,552
Revenue 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 5,135,750
Revenue Bonds, Series 1991A (Guthrie Healthcare System),
7.100%, 3/01/17
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.1%
12,500 Rhode Island Depositors Economic Protection Corporation, 8/01 at 102 AAA 13,032,250
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 5,271,746
Corporation, Airport Revenue Bonds, 1994 Series A,
6.625%, 7/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.1%
4,180 The Health and Educational Facilities Board of the City of 1/09 at 101 AAA 3,976,768
Johnson, Tennessee, Hospital Revenue Refunding and
Improvement Bonds, Series 1998C (Johnson City Medical
Center Hospital), 5.250%, 7/01/28
5,170 The Health, Educational and Housing Facilities Board of 2/03 at 102 AAA 5,280,586
the County of Sullivan, Tennessee, Hospital Revenue Bonds,
Series 1993 (Holston Valley Health Care, Inc.), 5.750%, 2/15/13
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.4%
8,000 Abilene Health Facilities Development Corporation (Texas), 9/05 at 102 AAA 8,204,720
Hospital Revenue Refunding and Improvement Bonds (Hendrick
Medical Center Project), Series 1995C, 6.150%, 9/01/25
Harris County Hospital District, Texas, Refunding Revenue
Bonds, Series 1990:
2,350 7.500%, 2/15/03 No Opt. Call AAA 2,469,767
2,100 7.400%, 2/15/10 No Opt. Call AAA 2,367,540
2,900 7.400%, 2/15/10 No Opt. Call AAA 3,314,410
City of Houston, Texas, Airport System Subordinate Lien
Revenue Bonds, Series 2000A:
4,685 5.500%, 7/01/19 (Alternative Minimum Tax) (WI, settling 11/15/00) 7/10 at 100 AAA 4,580,431
4,000 5.625%, 7/01/20 (Alternative Minimum Tax) (WI, settling 11/15/00) 7/10 at 100 AAA 3,961,640
4,410 5.625%, 7/01/21 (Alternative Minimum Tax) (WI, settling 11/15/00) 7/10 at 100 AAA 4,356,066
9,000 5.625%, 7/01/30 (Alternative Minimum Tax) (WI, settling 11/15/00) 7/10 at 100 AAA 8,746,470
12,500 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/10 at 100 AAA 12,204,250
Bonds, Series 2000B, 5.500%, 7/01/30 (WI, settling 11/15/00)
5,000 Matagorda County Navigation, District Number One (Texas), 1/01 at 102 AAA 5,041,150
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+ 687,261
Refunding Bonds, 1993 Series A, 5.000%, 7/01/23
6,000 Salt Lake City, Utah, Hospital Revenue Refunding Bonds 11/00 at 100 AAA 6,720,720
(IHC Hospitals, Inc.), Series 1988A, 8.000%, 5/15/07
<PAGE>
Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued)
Portfolio of INVESTMENTS October 31, 2000
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
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 $ 7,957,400
1,350 5.250%, 7/01/33 (Alternative Minimum Tax) (Optional put 7/01/30) 7/08 at 102 AAA 1,216,363
5,125 Municipality of Metropolitan Seattle, Washington, Sewer 1/03 at 102 AAA 4,977,910
Refunding Revenue Bonds, Series Z, 5.500%, 1/01/33
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.4%
12,845 West Virginia Water Development Authority, Infrastructure 10/10 at 100 AAA 12,434,470
Revenue Bonds (West Virginia Infrastructure and Jobs
Development Council Program), 2000 Series A,
5.500%, 10/01/39 (DD, settling 11/01/00)
------------------------------------------------------------------------------------------------------------------------------------
$ 965,666 Total Investments (cost $838,780,984) - 100.1% 867,580,332
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.1)% (459,934)
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 867,120,398
===================================================================================================================
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 (not covered by the report
of independent auditors): 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 (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
(DD) Security purchased on a delayed delivery basis.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
<PAGE>
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO)
Portfolio of INVESTMENTS October 31, 2000
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ALABAMA - 5.9%
$ 3,850 Alabama Housing Finance Authority, Multifamily Housing 7/05 at 103 Aaa $ 4,000,805
Revenue Refunding Bonds (GNMA Collateralized -
Royal Hills), 1995 Series F, 6.500%, 7/20/30
11,000 The Special Care Facilities Financing Authority of the 5/05 at 102 AAA 11,100,540
City 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 7,564,882
1,750 5.875%, 11/15/26 at 102 AAA 1,762,198
Jefferson County, Alabama, Sewer Revenue Capital
Improvement Warrants, Series 1999-A:
48,355 5.000%, 2/01/33 2/09 at 101 AAA 43,297,067
29,860 5.750%, 2/01/38 2/09 at 101 AAA 29,937,337
8,750 5.125%, 2/01/39 2/09 at 101 AAA 7,900,725
4,250 County Board of Education of Shelby, Alabama, Capital 2/05 at 102 AAA 4,381,580
Outlay Refunding School Warrants, Series 1995,
5.875%, 2/01/17
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 4.5%
Alaska Housing Finance Corporation, General Mortgage
Revenue Bonds, 1999 Series A:
24,110 6.050%, 6/01/35 6/09 at 100 AAA 24,536,024
11,500 6.050%, 6/01/39 6/09 at 100 AAA 11,694,695
10,450 Alaska State Housing Finance Corporation, Governmental 12/05 at 102 AAA 10,450,627
Purpose Bonds, 1995 Series A, 5.875%, 12/01/30
Alaska 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 21,023,971
4,060 6.150%, 6/01/39 12/09 at 100 AAA 4,160,160
5,750 Alaska Student Loan Corporation, Student Loan Revenue 7/07 at 100 AAA 5,864,138
Bonds, 1997 Series A, 5.350%, 7/01/08
(Alternative Minimum Tax)
10,000 North Slope Borough, Alaska, General Obligation Bonds, No Opt. Call AAA 6,122,700
Series 2000B, 0.000%, 6/30/10
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.6%
9,920 The Industrial Development Authority of the County of 1/02 at 103 AAA 10,439,907
Pima (Arizona), Industrial Development Lease Obligation
Refunding Revenue Bonds, 1988 Series A (Irvington Project),
7.250%, 7/15/10
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.5%
8,985 Arkansas Development Finance Authority, Single Family 9/01 at 102 AAA 9,253,562
Mortgage Revenue Bonds, 1990 Series A, (GNMA-Backed
Securities Program), 7.400%, 9/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 10.8%
California Educational Facilities Authority, Revenue Bonds,
Series 2000, Loyola Marymount University:
8,435 0.000%, 10/01/27 10/09 at 32 1/4 Aaa 1,602,903
4,000 0.000%, 10/01/28 10/09 at 30 1/4 Aaa 715,080
6,135 California Housing Finance Agency, Insured Housing Revenue 8/04 at 102 AAA 6,328,068
Bonds, 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 9,338,580
14,000 6.650%, 7/01/21 (Pre-refunded to 7/01/01) 7/01 at 102 AAA 14,540,400
<PAGE>
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS October 31, 2000
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CALIFORNIA (continued)
California Rural Home Mortgage Finance Authority, Single Family
Mortgage Revenue Bonds (Mortgage-Backed Securities Program),
1996 Series A:
$ 2,470 7.550%, 11/01/26 (Alternative Minimum Tax) No Opt. Call AAA $ 2,651,199
2,025 7.750%, 5/01/27 (Alternative Minimum Tax) No Opt. Call AAA 2,190,665
3,100 Campbell Union School District, Santa Clara County, 8/04 at 102 AAA 3,385,355
California, 1994 General Obligation Bonds, Series A,
6.250%, 8/01/19 (Pre-refunded to 8/01/04)
8,200 Castaic Lake Water Agency (California), Refunding Revenue 8/04 at 102 AAA 8,823,036
Certificates of Participation (Water System Improvement
Projects), Series 1994A, 6.300%, 8/01/20
11,000 East Bay Municipal Utility District (Alameda and Contra 6/03 at 102 AAA 10,489,600
Costa 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 6,014,470
California), 1994 General Obligation Bonds, Series A,
6.250%, 9/01/19 (Pre-refunded to 9/01/04)
3,670 Midpeninsula Regional Open Space District Financing 9/09 at 33 5/16 AAA 626,359
Authority, California, 1999 Revenue Bonds, 0.000%, 9/01/30
Midpeninsula Regional Open Space District Financing
Authority, California, 1999 Revenue Bonds, Second Issue:
2,230 0.000%, 8/01/28 8/08 at 29 11/32 AAA 404,879
4,100 0.000%, 8/01/29 8/08 at 27 9/16 AAA 698,763
4,305 0.000%, 8/01/30 8/08 at 25 25/32 AAA 686,045
4,270 0.000%, 8/01/31 8/08 at 24 7/32 AAA 638,664
9,000 County of Orange, California, Refunding Recovery Bonds, 6/05 at 102 AAA 9,397,350
1995 Series A, 5.750%, 6/01/15
12,500 County of Orange, California, 1996 Recovery Certificates 7/06 at 102 AAA 13,080,375
of Participation, Series A, 6.000%, 7/01/26
19,300 Sacramento Power Authority, California, Cogeneration Project 7/06 at 102 AAA 20,495,442
Revenue Bonds, 1995 Series, 5.875%, 7/01/15
6,500 City of Salinas, California, Housing Facility Refunding 7/04 at 102 AAA 6,777,550
Revenue Bonds, Series 1994A (GNMA Collateralized -
Villa Serra Project), 6.600%, 7/20/30
10,000 Airports Commission, City and County of San Francisco, 5/06 at 101 AAA 9,885,200
California (San Francisco International Airport), Second
Series Revenue Bond, Issue 13B, 5.500%, 5/01/26
(Alternative Minimum Tax)
66,685 San Joaquin Hills Transportation Corridor Agency (Orange No Opt. Call AAA 21,700,633
County, California), Senior Lien Toll Road Revenue Bonds,
0.000%, 1/01/21
13,450 San Joaquin Hills Transportation Corridor Agency No Opt. Call AAA 2,917,709
(Orange County, California), Junior Lien Toll Road
Revenue Bonds, 0.000%, 1/01/28
32,615 San Joaquin Hills Transportation Corridor Agency, Toll Road 1/07 at 102 AAA 31,594,803
Refunding Revenue Bonds, Series 1997A, 5.250%, 1/15/30
11,000 Santa Ana Financing Authority, Police Administration No Opt. Call AAA 12,407,010
and Housing Facility Lease Revenue Bonds, Series 1994A,
6.250%, 7/01/24
5,500 Santa Clara County Financing Authority, Lease Revenue 11/04 at 102 AAA 6,136,130
Bonds (VMC Facility Replacement Project), 1994 Series A,
6.750%, 11/15/20 (Pre-refunded to 11/15/04)
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 3.8%
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 8,663,598
5,760 6.625%, 11/15/11 11/01 at 101 AAA 5,934,931
10,545 City and County of Denver, Colorado, Airport System 11/06 at 101 AAA 10,396,632
Revenue Bonds, Series 1996D, 5.500%, 11/15/25
35,995 E-470 Public Highway Authority (Colorado), Senior No Opt. Call AAA 9,669,697
Revenue Bonds, Series 1997B, 0.000%, 9/01/23
30,800 E-470 Public Highway Authority (Colorado), Senior 9/10 at 102 AAA 31,068,268
Revenue Bonds, Series 2000A, 5.750%, 9/01/35
11,800 E-470 Public Highway Authority (Colorado), Senior 9/10 at 74 13/16 AAA 5,066,684
Revenue Bonds, Series 2000A and Series 2000B,
0.000%, 9/01/15
<PAGE>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CONNECTICUT - 0.1%
$ 2,500 Health and Educational Facilities Authority, Connecticut, 7/04 at 101 AAA $ 2,733,225
Revenue Bonds, Choate Rosemary Hall Issue, Series A,
7.000%, 7/01/25 (Pre-refunded to 7/01/04)
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.6%
6,000 District of Columbia, Hospital Improvement and Refunding 7/02 at 102 AAA 6,167,580
Revenue Bonds (Children's Hospital Issue),
Series 1992A, 6.250%, 7/15/19
4,820 District of Columbia Housing Finance Agency, Collateralized 12/01 at 102 AAA 4,962,817
Single Family Mortgage Revenue Bonds, Series 1990B,
7.100%, 12/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 0.5%
799 Housing Finance Authority of Dade County (Florida), Single 12/01 at 102 AAA 819,335
Family Mortgage Revenue Refunding Bonds,
1991 Series D, 6.950%, 12/15/12
2,710 Escambia County Housing Finance Authority (Florida), 4/05 at 102 AAA 2,845,256
Single Family Mortgage Revenue Bonds (Multi-County
Program), Series 1995, 6.950%, 10/01/27
(Alternative Minimum Tax)
5,340 Florida Housing Finance Agency, Home Ownership Revenue No Opt. Call AAA 5,934,609
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 5,035,950
Anticipation Certificates (Southeast Georgia Health Systems
Project), Series 1996, 5.250%, 8/01/13
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.4%
24,250 Department of Budget and Finance of the State of Hawaii, 5/06 at 101 AAA 25,254,435
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:
2,570 6.750%, 7/01/22 No Opt. Call Aa1 2,774,906
2,445 6.900%, 7/01/26 (Alternative Minimum Tax) No Opt. Call Aa1 2,602,629
3,585 Idaho Housing Agency, Single Family Mortgage Bonds, 1/05 at 102 Aaa 3,660,859
1995 Series B, 6.600%, 7/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 9.1%
4,055 Central Lake County Joint Action Water Agency, Illinois, 2/03 at 102 Aa2 4,135,897
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 10,528,400
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 26,858,700
12,750 5.125%, 1/01/35 (Alternative Minimum Tax) 1/09 at 101 AAA 11,327,610
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 19,213,644
26,475 6.250%, 11/01/21 (Pre-refunded to 11/01/01) 11/01 at 102 AAA 27,472,578
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 7,502,450
16,470 0.000%, 4/01/16 (Pre-refunded to 10/01/04) 10/04 at 47 1/16 AAA 6,445,370
10,000 Illinois Development Finance Authority, Revenue Bonds 5/08 at 101 AAA 9,710,000
(Provena Health), Series 1998A, 5.500%, 5/15/21
2,095 Illinois Educational Facilities Authority, Revenue Bonds 12/07 at 100 Aaa 2,089,008
(Robert Morris College), Series 2000, 5.820%, 6/01/30
(WI, settling 11/09/00)
2,180 Illinois Educational Facilities Authority, Revenue Bonds 10/10 at 101 AAA 2,171,018
(DePaul University), Series 2000, 5.500%, 10/01/19
(WI, settling 11/02/00)
<PAGE>
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS October 31, 2000
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ILLINOIS (continued)
$ 20,000 Illinois Health Facilities Authority, Brokaw-Mennonite 8/02 at 102 AAA $ 20,487,600
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 3,698,217
Series 1990-A, 7.000%, 12/15/10
Department of Central Management Services, Illinois Student
Assistance Commission, Certificates of Participation:
2,965 6.875%, 7/01/07 (Pre-refunded to 7/01/02) 7/02 at 102 AAA 3,136,614
6,085 6.950%, 7/01/13 (Pre-refunded to 7/01/02) 7/02 at 102 AAA 6,444,137
4,560 County of Macon, Illinois, Revenue Bonds, Millikin University, 10/05 at 100 AAA 4,898,899
Series 1995, 6.250%, 10/01/16
5,000 Regional Transportation Authority, Cook, DuPage, Kane, 6/04 at 102 AAA 5,445,650
Lake, McHenry and Will Counties, Illinois, General
Obligation Bonds, Series 1994D, 6.750%, 6/01/25
(Pre-refunded to 6/01/04)
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.6%
10,500 Hospital Authority of the City of Fort Wayne, Indiana, 11/02 at 102 A+*** 11,085,585
Revenue Bonds, Series 1992 (Parkview Memorial Hospital,
Inc. Project), 6.400%, 11/15/22 (Pre-refunded to 11/15/02)
20,000 The Indianapolis Local Public Improvement Bond Bank No Opt. Call AAA 4,128,200
(Indiana), Series 1999E, 0.000%, 2/01/28
12,250 City of Lawrenceburg, Indiana, Pollution Control Revenue 4/02 at 102 AAA 12,825,138
Refunding Bonds (Indiana Michigan Power Company
Project), Series D, 7.000%, 4/01/15
12,950 Marion County Convention and Recreational Facilities 6/01 at 102 AAA 13,401,696
Authority (Indiana), Excise Taxes 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 10,567,938
St. Joseph Counties, Indiana), First Mortgage Bonds,
Series 1994, 7.200%, 7/15/21 (Pre-refunded to 7/15/04)
14,000 Holy Cross Health System Corporation, Indiana Hospital 12/01 at 102 AAA 14,656,180
Revenue Bond Issues, Hospital Authority of Marshall County,
Hospital Revenue Refunding Bonds, Series 1991 (Holy Cross
Parkview Hospital, Inc.), 7.000%, 12/01/12
(Pre-refunded to 12/01/01)
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.5%
5,000 City of Davenport, Iowa, Hospital Facility Revenue 7/02 at 102 AAA 5,237,650
Bonds (Mercy Hospital Project), Series 1992,
6.250%, 7/01/22 (Pre-refunded to 7/01/02)
4,800 Iowa Finance Authority, Hospital Facilities Revenue Bonds, 7/08 at 102 AAA 4,353,696
Series 1998A (Iowa Health System), 5.125%, 1/01/28
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.3%
1,350 Sedgwick County, Kansas, and Shawnee County, 6/01 at 103 Aaa 1,389,987
Kansas, GNMA 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 4,967,900
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 10,498,500
(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 Capital Projects Corporation, Jefferson County, Kentucky, 2/01 at 24 11/16 AAA 12,909,210
Lease Revenue Bonds, Series 1989B, 0.000%, 8/15/19
(Pre-refunded to 2/15/01)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.3%
5,000 Parish of De Soto, State of Louisiana, Pollution Control 9/09 at 102 AAA 5,079,650
Revenue Refunding Bonds (Cleco Utility Group Inc. Project),
Series 1999, 5.875%, 9/01/29
15,650 Louisiana Public Facilities Authority, Hospital Revenue 5/02 at 102 AAA 16,496,039
Refunding Bonds (Southern Baptist Hospital Project),
Series 1992, 6.800%, 5/15/12 (Pre-refunded to 5/15/02)
5,340 City of New Orleans, Louisiana, Public Improvement Bonds, 9/02 at 100 AAA 5,581,048
Issue of 1992, 7.000%, 9/01/19 (Pre-refunded to 9/01/02)
8,385 Orleans Levee District (A Political Subdivision of the State 12/05 at 103 AAA 8,807,185
of Louisiana), Public Improvement Bonds, Series 1986,
5.950%, 11/01/15
<PAGE>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LOUISIANA (continued)
$ 3,000 Parish of St. Charles, State of Louisiana, Pollution Control 6/01 at 102 AAA $ 3,101,160
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 3,607,485
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 8,700,709
Revenue Bonds, Series 1991, 6.375%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 6.5%
6,000 Massachusetts Health and Educational Facilities Authority, 7/01 at 102 AAA 6,213,600
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 10,952,655
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 6,567,741
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 8,798,244
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 6,132,084
Revenue Bonds, Caregroup Issue, Series A, 5.000%, 7/01/18
22,000 Massachusetts Health and Educational Facilities Authority, 7/08 at 101 AAA 19,336,460
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 3,041,725
2,960 6.500%, 7/01/22 7/02 at 102 AAA 3,081,745
4,865 Massachusetts Housing Finance Agency, Housing Revenue 12/05 at 102 AAA 4,996,793
Refunding Bonds, 1995 Series A, 6.100%, 12/01/16
58,350 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102 AAA 51,915,746
System Revenue Bonds, 1997 Series A (Senior),
5.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 7.1%
11,245 The Economic Development Corporation of the City of 5/01 at 102 AAA 11,575,715
Detroit, 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 20,997,914
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 16,025,345
20,000 5.875%, 7/01/27 1/10 at 101 AAA 20,500,400
13,500 City of Detroit, Michigan, Water Supply System Revenue 7/04 at 102 AAA 12,474,270
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 17,154,445
(Senior Lien) Bonds, 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 2,203,120
State of Michigan, 1992 School Building and Site and
Refunding Bonds, 0.000%, 5/01/21 (Pre-refunded to 5/01/07)
8,500 County of Jackson Hospital Finance Authority, Hospital 6/03 at 102 AAA 7,956,680
Revenue Refunding Bonds (W. A. Foote Memorial Hospital,
Jackson Michigan), Series 1993A, 5.250%, 6/01/23
10,000 Michigan Strategic Fund, Limited Obligation Refunding 12/01 at 102 AAA 10,395,700
Revenue 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 7,161,750
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 6,247,868
System Refunding Bonds, Series 1991, 6.500%, 1/01/19
<PAGE>
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS October 31, 2000
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
MINNESOTA - 0.6%
$ 5,185 Minnesota Housing Finance Agency, Single Family Mortgage 1/04 at 102 AA+ $ 5,383,223
Bonds, 1994 Series M, 6.700%, 7/01/26 (Alternative Minimum Tax)
4,755 Minnesota Housing Finance Agency, Single Family Mortgage 7/02 at 102 AA+ 4,888,901
Bonds, 1992 Series E, 6.850%, 1/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.2%
3,615 Missouri Housing Development Commission, Single Family 1/02 at 102 AAA 3,730,427
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 3/02 at 102 AAA 27,113,580
Control Revenue Refunding Bonds (Puget Sound Power and
Light Company Colstrip Project), Series 1992, 6.800%, 3/01/22
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.1%
11,000 Clark County, Nevada, Las Vegas-McCarran International 7/02 at 102 AAA 11,486,420
Airport Passenger Facility Charge Revenue Bonds,
1992 Series A, 6.000%, 7/01/22 (Pre-refunded to 7/01/02)
Director of the State of Nevada, Department of Business and
Industry, Las Vegas Monorail Project Revenue Bonds, 1st Tier
Series 2000:
15,000 5.625%, 1/01/34 (DD, settling 11/01/00) 1/10 at 102 AAA 14,842,950
5,000 5.375%, 1/01/40 1/10 at 100 AAA 4,720,000
4,285 Nevada Housing Division, Single Family Program Bonds , 4/04 at 102 Aa2 4,378,242
(Senior), 1994 Issue B-1, 6.700% 10/01/17
3,310 Nevada Housing Division, Single Family Mortgage Bonds 4/04 at 102 Aa2 3,411,783
(Senior), 1994 Series B-2, 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 5,083,007
Authority, Hospital Revenue Bonds, Lakes Region Hospital
Association Issue, Series 1993, 5.750%, 1/01/11
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 4.2%
Long Island Power Authority, New York, Electric System
General Revenue Bonds, Series 1998A:
11,095 5.000%, 12/01/18 6/08 at 101 AAA 10,482,223
8,685 5.300%, 12/01/19 6/08 at 101 AAA 8,506,002
8,265 The City of New York, New York, General Obligation Bonds, 8/02 at 101 1/2 AAA 8,653,290
Fiscal 1992 Series C, 6.250%, 8/01/10 (Pre-refunded to 8/01/02)
10,000 New York City Municipal Water Finance Authority, 6/06 at 101 AAA 10,089,600
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 3,187,380
6,400 6.750%, 7/01/24 (Pre-refunded to 7/01/04) 7/04 at 102 AAA 7,016,192
9,000 Dormitory Authority of the State of New York, The New York 8/09 at 101 AAA 8,681,940
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, Correctional 1/07 at 102 AAA 5,027,100
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 16,522,116
Revenue Bonds, Ninety-Seventh Series, 6.650%, 1/15/23
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.5%
45,000 City of Charlotte, North Carolina, Certificates of Participation, 12/01 at 102 AAA 47,011,050
Series 1991 (Convention Facility Project), 6.750%, 12/01/21
(Pre-refunded to 12/01/01)
<PAGE>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OHIO - 4.0%
$ 12,550 City of Cleveland, Ohio, Waterworks Improvement First 1/02 at 102 AAA $ 13,084,881
Mortgage 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 9,465,930
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 19,824,083
(ProMedica Healthcare Obligated Group), 5.375%, 11/15/39
2,000 Mansfield, Ohio, Hospital Improvement Revenue Bonds, 6/02 at 102 AAA 2,086,820
Series 1991 (Mansfield General Hospital Project),
6.700%, 12/01/09 (Pre-refunded to 6/01/02)
8,090 Ohio Housing Finance Agency, Residential Mortgage 3/05 at 102 Aaa 8,423,551
Revenue 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 10/04 at 102 AAA 14,234,138
Development Revenue Refunding Bonds (JMG Funding
Limited Partnership Project), Series 1994, 6.375%, 1/01/29
(Alternative Minimum Tax)
8,000 Ohio Air Quality Development Authority, Air Quality 10/04 at 102 AAA 8,281,680
Development Revenue Refunding Bonds (JMG Funding,
Limited Partnership Project), Series 1994, 6.375%, 4/01/29
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.6%
395 Oklahoma Housing Finance Agency, Single Family Mortgage 3/01 at 102 AAA 403,074
Revenue Bonds, 1991 Series A, 7.150%, 3/01/07
24,965 Oklahoma Housing Finance Agency, GNMA Collateralized No Opt. Call AAA 27,553,122
Single Family Mortgage Revenue Bonds, Series 1987A,
7.997%, 8/01/18 (Alternative Minimum Tax)
1,030 Tulsa County Home Finance Authority, GNMA Collateralized 12/01 at 102 AAA 1,056,162
Mortgage Revenue Bonds, Series 1991C, 7.100%, 6/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.2%
4,300 State of Oregon, Housing and Community Services Department, 7/05 at 102 Aa2 4,452,306
Mortgage Revenue Bonds (Single-Family Mortgage Program),
1995 Series A, 6.450%, 7/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 5.0%
14,700 County of Allegheny, Pennsylvania, Airport Revenue Bonds, 1/02 at 102 AAA 15,185,100
Series 1992A and 1992B (Greater Pittsburgh International
Airport), 6.625%, 1/01/22 (Alternative Minimum Tax)
7,000 Industrial Development Authority, Beaver County (Pennsylvania), 9/01 at 102 AAA 7,265,090
Pollution Control Revenue Refunding Bonds, 1991 Series A
(Pennsylvania Power Company, Mansfield Project),
7.150%, 9/01/21
24,800 Butler County Hospital Authority (Pennsylvania), Hospital 6/01 at 102 AAA 25,660,560
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 5,139,600
5,000 7.375%, 4/01/21 4/01 at 102 AAA 5,149,600
10,000 The Harrisburg Authority (Dauphin County, Pennsylvania), 6/01 at 101 AAA 10,229,900
Commonwealth of Pennsylvania Lease Bonds, Series of 1991,
6.625%, 6/01/13 (Pre-refunded to 6/01/01)
7,120 General Purpose Authority, Lehigh County, Pennsylvania, 7/04 at 102 AAA 7,655,994
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 9,334,492
Pollution Control Revenue Refunding Bonds, 1992 Series A
(Philadelphia Electric Company Project), 6.625%, 6/01/22
7,000 Harristown Development Corporation, Commonwealth of 11/01 at 102 AAA 7,242,270
Pennsylvania, Certificates of Participation, 6.250%, 5/01/16
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 3.4%
38,650 The Convention Center Authority (Rhode Island), Revenue 5/01 at 102 AAA 39,879,843
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 2,283,524
Mortgage Revenue Refunding Bonds, Series 1994A
(FHA-Insured Mortgage Loan - Barbara Jordan Apartments
Project), 6.750%, 7/01/25
<PAGE>
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS October 31, 2000
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
RHODE ISLAND (continued)
$ 20,475 Rhode Island Depositors Economic Protection Corporation, 2/11 at 100 AAA $ 21,187,325
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), No Opt. Call AAA 11,365,866
Electric 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 3,131,640
600 6.150%, 3/01/25 3/05 at 102 AAA 614,418
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.4%
7,500 Metropolitan Nashville Airport Authority (Tennessee), 7/01 at 102 AAA 7,740,000
Airport Improvement Revenue Bonds, Refunding Series 1991C,
6.600%, 7/01/15
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 4.0%
9,500 Coastal Bend Health Facilities Development Corporation 11/02 at 102 AAA 9,964,170
(Texas), Incarnate Word Health Services Revenue Bonds,
Series 1993-A, 6.000%, 11/15/22
11,460 Dallas County Utility and Reclamation District, Texas, 2/05 at 100 AAA 11,575,402
Unlimited Tax Refunding Bonds, Series 1999B,
5.875%, 2/15/29
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 3,133,800
39,000 0.000%, 8/15/19 (Pre-refunded to 8/15/09) 8/09 at 50 1/4 AAA 12,676,560
7,280 0.000%, 8/15/20 (Pre-refunded to 8/15/09) 8/09 at 46 29/32 AAA 2,208,970
5,085 0.000%, 8/15/21 (Pre-refunded to 8/15/09) 8/09 at 43 25/32 AAA 1,440,377
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 915,781
13,280 6.375%, 12/01/17 12/01 at 102 AAA 13,779,195
6,500 Health Facilities Development Corporation, Tarrant County, 2/08 at 101 AAA 5,539,300
Texas, Health Resources System Revenue Bonds,
Series 1997A, 5.000%, 2/15/26
13,880 Texas Department of Housing and Community Affairs, 9/06 at 102 AAA 14,153,714
Single Family Mortgage Revenue Bonds, 1996 Series D,
6.250%, 9/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.4%
5,940 Utah Housing Finance Agency, Multifamily Housing Refunding 1/02 at 102 AAA 6,193,222
Bonds, 1992 Issue A (FHA-Insured Mortgage Loans),
7.400%, 7/01/24
1,365 Utah Housing Finance Agency, Single Family Mortgage 7/04 at 102 Aaa 1,395,044
Bonds, 1994 Issue D (Federally Insured or Guaranteed
Mortgage Loans), 6.750%, 1/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 2.2%
3,195 Kitsap County, Washington, Limited Tax General Obligation 7/10 at 100 AAA 3,154,392
Bonds, Series 2000, 5.500%, 7/01/25
4,250 Public Utility District No. 1 of Snohomish County, Washington, 1/02 at 102 AAA 4,840,070
Generation System Revenue Bonds, Series 1989,
6.650%, 1/01/16
19,750 Washington Health Care Facilities Authority, Revenue Bonds, 12/00 at 101 AAA 20,182,130
Series 1989 (Group Health Cooperative of Puget Sound,
Seattle), 7.200%, 12/01/15
4,100 Washington Public Power Supply System, Nuclear Project 7/02 at 102 Aaa 4,227,223
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 8,557,800
No. 3 Refunding Revenue Bonds, Series 1993B,
5.600%, 7/01/17
<PAGE>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
WEST VIRGINIA - 1.5%
$ 10,000 The County Commission of Harrison, West Virginia, 5/03 at 102 A $ 10,000,000
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 11/01 at 102 AAA 4,270,109
Development 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 9,169,300
Revenue Bonds (Loan Program II), 1999 Series A,
5.125%, 11/01/39 (Optional put 11/01/11)
5,050 State of West Virginia, University of West Virginia Board 5/02 at 100 AAA 5,220,842
of Trustees, Dormitory Revenue Bonds (West Virginia
University Project), 1992 Series A, 6.750%, 5/01/17
(Pre-refunded to 5/01/02)
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.8%
8,270 Wisconsin Housing and Economic Development Authority, 1/02 at 102 AAA 8,587,072
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 8,478,116
Bonds, Series 1991 (St. Lukes Medical Center Project),
7.100%, 8/15/19 (Pre-refunded to 8/15/01)
17,710 Wisconsin Health and Educational Facilities Authority, 12/01 at 102 AAA 18,502,340
Revenue Bonds, Series 1991-B (Novus Health Group),
6.750%, 12/15/20 (Pre-refunded to 12/15/01)
15,000 Wisconsin Health and Educational Facilities Authority, 2/07 at 102 AAA 14,846,100
Revenue Bonds, Series 1997 (Marshfield Clinic Project),
5.750%, 2/15/27
22,700 Wisconsin Health and Educational Facilities Authority, 8/07 at 102 AAA 20,877,870
Revenue Bonds, Series 1997 (Aurora Health Care, Inc.),
5.250%, 8/15/27
------------------------------------------------------------------------------------------------------------------------------------
$ 2,104,549 Total Investments (cost $1,782,269,331) - 99.4% 1,855,334,639
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.6% 11,366,691
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,866,701,330
===================================================================================================================
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 (not covered by the report
of independent auditors): 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 (not covered by the report of independent
auditors): 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.
(DD) Security purchased on a delayed delivery basis.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
<PAGE>
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF)
Portfolio of
INVESTMENTS October 31, 2000
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ALABAMA - 1.5%
$ 1,000 City of Jacksonville, Alabama, General Obligation Warrants, 9/10 at 102 AAA $ 999,250
Series 2000A, 5.600%, 9/01/25
2,250 BMC Special Care Facilities Financing Authority of the City of 1/02 at 100 AAA 2,283,638
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 of 12/02 at 102 AAA 3,168,990
Montgomery, Revenue Bonds, Series 1992-B (Baptist
Medical Center), 6.700%, 12/01/10
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 22.1%
6,750 ABAG Finance Authority for Nonprofit Corporations (California), 12/09 at 101 AAA 7,110,990
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 10,550,000
Certificates of Participation (Children's Hospital Medical Center
of Northern California), Series 1999, 6.000%, 12/01/29
5,000 Antioch Area Public Facilities Financing Agency (Contra Costa 8/09 at 101 AAA 5,142,250
County, California), Community Facilities District No. 1989-1,
Special Tax Bonds, Series 1999, 5.700%, 8/01/22
925 Housing Authority of the County of Kern, Guaranteed Tax-Exempt No Opt. Call AAA 1,010,701
Mortgage Obligations, 1994 Series A, Subseries I,
7.150%, 12/30/24 (Alternative Minimum Tax)
570 Housing Authority of the County of Kern, Guaranteed Tax-Exempt No Opt. Call AAA 616,136
Mortgage Obligations, 1994 Series A, Subseries III,
7.450%, 6/30/25 (Alternative Minimum Tax)
5,815 La Verne-Grand Terrace Housing Finance Agency, Single Family No Opt. Call AAA 8,214,153
Residential Mortgage Revenue Bonds, 1984 Series A,
10.250%, 7/01/17
5,840 Lancaster Redevelopment Agency, Lancaster Residential 8/01 at 102 AAA 6,019,872
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 2,774,543
of Participation, 1999 Series B, 0.000%, 1/15/24
5,040 Northern California Power Agency, Hydroelectric Project No Opt. Call AAA 6,012,871
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 6,394,200
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 11,064,746
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 12,973,377
Revenue Refunding Bonds (GNMA Mortgage-Backed Securities),
Series 1990A, 7.500%, 5/01/23
14,755 County of San Bernardino, California, Single Family Mortgage No Opt. Call AAA 18,470,014
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 2,098,180
(1992 Water System Improvement Project and Refunding),
6.700%, 4/01/27
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 1.7%
6,000 E-470 Public Highway Authority (Colorado), Senior Revenue Bonds, 9/10 at 102 AAA 6,068,820
Series 2000A and Series 2000B, 5.750%, 9/01/29
1,225 Summit School District RE-1, Summit County, Colorado, General 12/04 at 100 AAA 1,324,213
Obligation Improvement Bonds, Series 1994, 6.700%, 12/01/14
(Pre-refunded to 12/01/04)
<PAGE>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FLORIDA - 6.3%
Miami-Dade County, Florida, Subordinate Special Obligation
Bonds, Series 1997A:
$ 10,000 0.000%, 10/01/18 4/08 at 58 19/32 AAA $ 3,519,000
13,455 0.000%, 10/01/22 4/08 at 46 13/16 AAA 3,645,498
24,385 0.000%, 10/01/23 4/08 at 44 1/4 AAA 6,205,251
30,000 0.000%, 10/01/26 4/08 at 37 5/16 AAA 6,329,100
50,500 Miami-Dade County, Florida, Subordinate Special Obligation 4/08 at 29 11/16 AAA 8,330,985
Bonds, Series 1997B, 0.000%, 10/01/30
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 4.8%
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 3,894,645
10,000 8.000%, 1/01/15 (Pre-refunded to 1/01/03) 1/03 at 103 AAA 10,996,200
6,500 The Medical Center Hospital Authority (Georgia), Revenue 8/09 at 102 AAA 6,357,585
Anticipation Certificates (Columbus Regional Healthcare
System, Inc. Project), Series 1999, 5.500%, 8/01/25
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 4.0%
8,030 State of Hawaii, Airports System Revenue Bonds, Refunding 7/10 at 101 AAA 8,751,496
Series 2000B, 6.500%, 7/01/15 (Alternative Minimum Tax)
2,250 Department of Budget and Finance of the State of Hawaii, 1/09 at 101 AAA 2,332,508
Special Purpose Revenue Bonds (Hawaii Electric Company,
Inc. and Subsidiaries Project), Series 1999D, 6.150%, 1/01/20
(Alternative Minimum Tax)
6,500 Department of Budget and Finance of the State of Hawaii, Special 11/09 at 101 AAA 6,728,605
Purpose Revenue Bonds (Hawaii Electric Company, Inc. and
Subsidiaries Project), Series 1999C, 6.200%, 11/01/29
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 9.1%
10,000 City of Chicago (Illinois), General Obligation Adjustable Rate 7/02 at 101 1/2 AAA 10,528,400
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 9,076,662
Lease Certificates, 1992 Series A, 6.250%, 1/01/15
10,150 Onterie Center Housing Finance Corporation (An Illinois Not 7/02 at 102 AAA 10,590,003
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 4,169,828
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1992A, 9.000%, 6/01/09
4,000 Public Building Commission of St. Clair County, Illinois, Public 12/02 at 102 AAA 4,176,760
Building Revenue Bonds, Series 1992, 6.350%, 12/01/09
(Alternative Minimum Tax)
1,575 School District Number 122, Will County, Illinois (New Lenox), 11/10 at 100 Aaa 1,724,735
Series 2000A, 6.500%, 11/01/17
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.9%
5,375 Indiana Health Facility Financing Authority, Hospital Revenue 5/02 at 102 AAA 5,582,690
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 7,204,750
Indiana, First Mortgage Refunding Bonds, Series 1992B,
6.375%, 1/15/09
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.5%
6,500 County of Daviess, Kentucky, Insured Hospital Revenue Bonds 8/02 at 102 AAA 6,696,820
(ODCH, Inc. Project), 1992 Series A, 6.250%, 8/01/22
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.1%
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 5,289,100
4,000 6.450%, 2/01/22 (Pre-refunded to 2/01/03) 2/03 at 102 AAA 4,240,280
<PAGE>
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF) (continued)
Portfolio of INVESTMENTS October 31, 2000
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
MASSACHUSETTS - 5.7%
$ 3,000 Framingham Housing Authority, GNMA Collateralized Mortgage 8/01 at 102 AAA $ 3,089,610
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 8,694,322
Revenue Bonds, New England Medical Center Hospitals Issue,
Series F, 6.625%, 7/01/25
15,000 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102 AAA 13,345,950
System Revenue Bonds, 1997 Series A (Senior), 5.000%, 1/01/37
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.5%
2,250 City of Kalamazoo Hospital Finance Authority, Hospital Revenue 5/06 at 102 AAA 2,290,523
Refunding and Improvement Bonds (Bronson Methodist
Hospital), Series 1996, 5.750%, 5/15/16
6,500 Michigan Higher Education Student Loan Authority, Student Loan No Opt. Call AAA 6,591,520
Refunding Revenue Bonds, Series XII-T, 5.300%, 9/01/10
(Alternative Minimum Tax)
2,000 Paw Public Schools, County of Van Buren, State of Michigan, 5/05 at 100 AAA 2,087,020
1995 School Building and Site Bonds, 5.625%, 5/01/25
(Pre-refunded to 5/01/05)
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.5%
4,900 Minneapolis-St. Paul Metropolitan Airports Commission, Airport 1/10 at 101 AAA 5,176,360
Revenue Bonds, Series 2000B, 6.000%, 1/01/14
(Alternative Minimum Tax)
1,485 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102 AAA 1,506,473
1995 Series D, 5.950%, 2/01/18
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.3%
7,495 The Industrial Development Authority of Jefferson County, 8/07 at 100 AAA 10,130,542
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 13,556,790
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 Water 7/02 at 102 AAA 5,241,547
Facilities Refunding Revenue Bonds (Sierra Pacific Power
Company Project), Series 1987, 6.300%, 12/01/14
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 4.9%
7,645 Metropolitan Transportation Authority, New York, Transit No Opt. Call AAA 9,050,610
Facilities Revenue Bonds, Series J, 9.100%, 7/01/05
The City of New York, New York, General Obligation Bonds, Fiscal
1992 Series C:
6,910 6.625%, 8/01/14 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 AAA 7,277,888
4,950 6.625%, 8/01/15 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 AAA 5,213,538
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 3.2%
5,300 Oklahoma Housing Finance Agency, GNMA Collateralized No Opt. Call AAA 5,849,451
Single Family Mortgage Revenue Bonds, Series 1987A,
7.997%, 8/01/18 (Alternative Minimum Tax)
5,440 Sapulpa Municipal Authority, Oklahoma, Capital Improvement 7/10 at 101 AAA 5,490,538
Revenue Bonds, Series 2000 Refunding, 5.625%, 7/01/20
(DD, settling 11/01/00)
3,000 Tulsa Industrial Authority, Multifamily Housing Revenue 11/05 at 103 Aaa 3,056,640
Refunding Bonds (GNMA Collateralized - Country Club of
Woodland Hills Development), Series 1995, 6.250%, 11/01/27
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.5%
19,140 Montgomery County Industrial Development Authority, 6/02 at 102 AAA 19,962,254
Pollution Control Revenue Refunding Bonds, 1992 Series A
(Philadelphia Electric Company Project), 6.625%, 6/01/22
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.8%
11,750 Rhode Island Depositors Economic Corporation, Special 8/02 at 102 AAA 12,403,535
Obligation Bonds, 1992 Series A, 6.625%, 8/01/19
(Pre-refunded to 8/01/02)
<PAGE>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SOUTH CAROLINA - 4.5%
$ 10,000 Piedmont Municipal Power Agency, Electric Revenue Refunding 1/01 at 102 AAA $ 10,159,500
Bonds, Series 1991, 6.250%, 1/01/18
9,450 South Carolina Public Service Authority, Santee Cooper, 7/02 at 102 AAA 9,947,637
Revenue Bonds, 1991 Series D, 6.500%, 7/01/24
(Pre-refunded to 7/01/02)
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.1%
5,000 The Health and Educational Facilities Board of the Metropolitan 11/09 at 101 AAA 5,099,900
Government of Nashville and Davidson County, Tennessee,
Revenue Bonds (Ascension Health Credit Group), Series 1999A,
6.000%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 2.1%
1,005 Corpus Christi Housing Finance Corporation (Texas), Single 7/01 at 103 AAA 1,065,089
Family Mortgage Senior Revenue Refunding Bonds,
Series 1991A, 7.700%, 7/01/11
920 City of El Paso Property Finance Authority, Inc. (Texas), 6/02 at 103 Aaa 963,516
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 5,493,580
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 2/01 at 100 AAA 1,602,528
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 Bonds 6/02 at 102 AAA 6,284,520
(Appalachian Power Company Project), Series I, 6.850%, 6/01/22
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.0%
DeForest Area School District, Columbia and Dane Counties,
Wisconsin, General Obligation Bonds, Series 2000:
2,115 5.600%, 4/01/19 4/09 at 100 Aaa 2,125,173
2,475 5.600%, 4/01/20 4/09 at 100 Aaa 2,480,615
------------------------------------------------------------------------------------------------------------------------------------
$ 517,310 Total Investments (cost $418,398,085) - 98.9% 438,870,474
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 4,673,972
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 443,544,446
===================================================================================================================
<PAGE>
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 (not covered by the report
of independent auditors): 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 (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
(DD) Portion of security purchased on a delayed delivery basis.
See accompanying notes to financial statements.
<PAGE>
Nuveen Insured Premium Income Municipal Fund 2 (NPX)
Portfolio of
INVESTMENTS October 31, 2000
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ALABAMA - 2.5%
Jefferson County, Alabama, Sewer Revenue Warrants, Series 1997D:
$ 5,000 5.700%, 2/01/20 2/07 at 101 AAA $ 5,065,450
8,800 5.750%, 2/01/22 2/07 at 101 AAA 8,934,728
2,500 City of Mobile, Alabama, General Obligation Refunding 2/06 at 102 AAA 2,575,425
Warrants, Series 1996, 5.750%, 2/15/16
2,000 City of Scottsboro, Alabama, General Obligation School 7/06 at 102 AAA 2,086,000
Warrants, Series 1996-B, 5.750%, 7/01/14
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.0%
2,785 Alaska Housing Finance Corporation, Mortgage Revenue Bonds, 6/06 at 102 AAA 2,862,451
1996 Series A, 6.050%, 12/01/17
Alaska Student Loan Corporation, Student Loan Revenue Bonds,
2000 Series A:
2,490 5.650%, 7/01/10 (Alternative Minimum Tax) No Opt. Call AAA 2,582,703
2,390 5.700%, 7/01/11 (Alternative Minimum Tax) 7/10 at 100 AAA 2,476,207
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 4.5%
6,450 California Housing Finance Agency, Multi-Unit Rental Housing 2/03 at 102 Aa2 6,574,292
Revenue Bonds, Series 1992A-II, 6.625%, 2/01/24
(Alternative Minimum Tax)
6,850 County of Orange, California, 1996 Recovery Certificates 7/06 at 102 AAA 7,168,046
of Participation, Series A, 6.000%, 7/01/26
13,000 Sacramento City Financing Authority (California), 1999 12/09 at 102 AAA 13,633,360
Capital 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):
1,525 6.550%, 1/01/12 1/02 at 102 AAA 1,579,000
5,100 6.650%, 1/01/25 1/02 at 102 AAA 5,248,461
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 2.5%
2,480 Colorado Health Facilities Authority, Hospital Revenue Bonds 12/09 at 101 Aaa 2,495,029
(Poudre Valley Health Care, Inc.), Series 1999A,
5.625%, 12/01/19
3,500 Colorado Health Facilities Authority, Hospital Revenue Bonds 12/09 at 101 Aaa 3,522,435
(Poudre Valley Health Care, Inc.), Series 1999A,
5.750%, 12/01/23
12,955 City and County of Denver, Colorado, Airport System Revenue 11/05 at 102 AAA 13,003,193
Bonds, Series 1995A, 5.600%, 11/15/20
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.2%
5,000 District of Columbia, Hospital Improvement and Refunding 7/02 at 102 AAA 5,139,650
Revenue Bonds (Children's Hospital Issue), Series 1992A,
6.250%, 7/15/19
3,765 District of Columbia Housing Finance Agency, Collateralized 6/03 at 102 AAA 3,821,400
Single Family Mortgage Revenue Bonds, Series 1990C-4,
6.350%, 12/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 0.4%
Holmes County, Florida, Public Improvement Revenue Bonds,
Series 2000:
1,045 5.500%, 12/01/20 12/10 at 102 AAA 1,047,236
2,130 5.500%, 12/01/30 12/10 at 102 AAA 2,103,652
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 2.5%
State of Hawaii, Airports System Revenue Bonds, Refunding
Series 2000B:
6,105 6.100%, 7/01/16 (Alternative Minimum Tax) 7/10 at 100 AAA 6,417,698
9,500 6.625%, 7/01/17 (Alternative Minimum Tax) 7/10 at 101 AAA 10,389,485
2,000 6.625%, 7/01/18 (Alternative Minimum Tax) 7/10 at 101 AAA 2,180,960
<PAGE>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ILLINOIS - 12.7%
$ 2,500 City of Aurora, Kane, DuPage, Kendall and Will Counties, 1/05 at 100 AAA $ 2,617,700
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 678,528
2,195 0.000%, 1/01/22 1/08 at 45 3/16 AAA 638,460
2,195 0.000%, 1/01/23 1/08 at 42 1/2 AAA 599,696
Village of Bolingbrook, Illinois, General Obligation Bonds,
Series 1999C Refunding:
2,505 0.000%, 1/01/21 No Opt. Call AAA 788,298
2,930 0.000%, 1/01/22 No Opt. Call AAA 865,317
1,500 City of Chicago, General Obligation Bonds, Project Series 1995, 7/05 at 102 AAA 1,620,885
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 8,478,559
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) 1/04 at 102 AAA 870,373
(Pre-refunded to 1/01/04)
280 6.100%, 1/01/08 (Alternative Minimum Tax) 1/04 at 102 AAA 294,062
2,040 6.250%, 1/01/14 (Alternative Minimum Tax) 1/04 at 102 AAA 2,174,252
(Pre-refunded to 1/01/04)
710 6.250%, 1/01/14 (Alternative Minimum Tax) 1/04 at 102 AAA 746,821
9,000 City of Chicago (Illinois), Chicago-O'Hare International Airport, 1/02 at 102 AAA 9,325,350
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 8,771,840
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 9,836,300
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 2,194,511
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 4,697,956
5,000 6.250%, 4/01/18 No Opt. Call AAA 5,505,500
3,220 Illinois Housing Development Authority, Housing Development 1/04 at 102 A+ 3,245,245
Bonds, 1993 Series A, 6.000%, 7/01/18
1,770 Illinois Health Facilities Authority, Revenue Bonds, Series 1991 1/02 at 102 AAA 1,834,340
(Elmhurst Memorial Hospital), 6.625%, 1/01/22
4,000 The Illinois State Toll Highway Authority, Toll Highway Priority 1/03 at 102 AAA 4,213,360
Revenue Bonds, 1992 Series A, 6.200%, 1/01/16
(Pre-refunded to 1/01/03)
6,335 Metropolitan Pier and Exposition Authority (Illinois), 6/03 at 102 AAA 6,761,472
McCormick Place Expansion Project Bonds, Series 1992A,
6.500%, 6/15/22 (Pre-refunded to 6/15/03)
2,595 City of Peoria, City of Moline and City of Freeport, Illinois, 10/05 at 105 AAA 2,799,097
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:
7,185 0.000%, 10/01/20 10/09 at 54 3/8 AAA 2,226,344
7,455 0.000%, 10/01/22 10/09 at 48 7/16 AAA 2,027,611
7,595 0.000%, 10/01/23 10/09 at 45 3/4 AAA 1,937,864
7,745 0.000%, 10/01/24 10/09 at 43 3/16 AAA 1,857,483
7,910 0.000%, 10/01/25 10/09 at 40 69/94 AAA 1,782,835
8,080 0.000%, 10/01/26 10/09 at 38 6/13 AAA 1,715,384
8,260 0.000%, 10/01/27 10/09 at 36 5/16 AAA 1,650,100
8,455 0.000%, 10/01/28 10/09 at 34 9/32 AAA 1,588,779
8,655 0.000%, 10/01/29 10/09 at 32 3/8 AAA 1,531,416
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.8%
1,000 Fort Wayne South Side School Building Corporation, 1/04 at 102 AAA 1,064,800
Allen County, Indiana, First Mortgage Bonds, Series 1994,
6.125%, 1/15/12 (Pre-refunded to 1/15/04)
2,220 Indiana Municipal Power Agency, Power Supply System 1/03 at 102 AAA 2,331,710
Revenue Bonds, 1993 Series A, 6.125%, 1/01/19
9,770 Northwest Allen Building Corporation, Allen County, Indiana, 6/05 at 102 AAA 9,874,246
First Mortgage Bonds, Series 1995 5.500%, 6/01/15
<PAGE>
Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued)
Portfolio of INVESTMENTS October 31, 2000
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
KANSAS - 0.4%
$ 955 City of Olathe and Labette County, Kansas, Collateralized 2/05 at 105 Aaa $ 1,032,966
Single Family Mortgage Refunding Revenue Bonds,
Series A-I, 8.100%, 8/01/23 (Alternative Minimum Tax)
1,500 Sedwick County, Kansas and Shawnee County, Kansas, 11/04 at 105 Aaa 1,620,450
Collateralized Single Family Mortgage Refunding Revenue
Bonds, Series A-II, 8.050%, 5/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.6%
23,340 Kentucky Economic Development Finance Authority, Health No Opt. Call AAA 4,385,819
System Revenue Bonds, Norton Healthcare Inc., Series 2000B,
0.000%, 10/01/28
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.4%
5,000 Massachusetts Housing Finance Agency, Housing Project 4/03 at 102 AAA 5,111,900
Revenue, 6.150%, 10/01/15
7,450 Massachusetts Housing Finance Agency, Single Family 6/06 at 102 AAA 7,629,322
Housing Revenue Bonds, Series 48, 6.350%, 6/01/26
(Alternative Minimum Tax)
5,000 Massachusetts Housing Finance Authority, Single Family 6/07 at 102 AAA 5,042,750
Housing Revenue Bonds, Series 53, 6.150%, 12/01/29
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.6%
4,705 Board of Control of Grand Valley State University, Michigan, 12/10 at 100 AAA 4,554,487
General Revenue Bonds, Series 2000, 5.250%, 12/01/20
9,250 Michigan Public Power Agency, Belle River Project Refunding 1/03 at 102 AAA 9,039,655
Revenue Bonds, 1993 Series A, 5.250%, 1/01/18
10,000 Michigan State Housing Development Authority, Rental 4/07 at 102 AAA 10,285,200
Housing Revenue Bonds, 1997 Series A, 6.000%, 4/01/16
(Alternative Minimum Tax)
10,000 County of Monroe, Michigan, Pollution Control Revenue Bonds 9/03 at 102 AAA 10,549,200
(The Detroit Edison Company Project), Series CC-1992,
6.550%, 9/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.6%
3,000 Duluth Economic Development Authority, Minnesota, 5/02 at 102 AAA 3,103,830
Hospital Facilities Revenue Bonds (St. Lukes Hospital of
Duluth Project), Series 1992B, 6.400%, 5/01/18
8,905 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102 AAA 9,033,766
1995 Series D, 5.950%, 2/01/18
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.0%
1,000 The Industrial Development Authority of the City of Hazelwood, 9/06 at 102 AAA 1,027,070
Missouri, Multifamily Housing Revenue Refunding Bonds
(GNMA Collateralized - The Lakes Apartments Project),
Series 1996, 6.000%, 9/20/16
4,500 Land Clearance for Redevelopment Authority of Kansas City, 12/05 at 102 AAA 4,667,130
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 1,036,300
Revenue Capital Improvement Bonds (Kansas City, Missouri,
Lessee), Series 1996B, 5.750%, 1/15/14
1,030 Missouri Housing Development Commission, Multifamily 12/06 at 102 AAA 1,058,459
Housing Revenue Bonds (Brookstone Village Apartments
Project), 1996 Series A, 6.000%, 12/01/16
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 7.1%
5,000 Clark County, Nevada, Industrial Development Revenue 6/02 at 102 AAA 5,216,550
Bonds (Nevada Power Company Project), Series 1992A,
6.700%, 6/01/22 (Alternative Minimum Tax)
5,000 Clarke County, Nevada, Industrial Development Revenue 7/10 at 102 AAA 5,044,400
Bonds, Series 2000C (Southwest Gas Corporation),
5.950%, 12/01/38 (Alternative Minimum Tax)
Director of the State of Nevada, Department of Business and
Industry, Las Vegas Monorail Project Revenue Bonds, 1st Tier
Series 2000:
15,500 5.625%, 1/01/32 1/10 at 102 AAA 15,352,440
1,100 5.375%, 1/01/40 1/10 at 100 AAA 1,038,400
<PAGE>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NEVADA (continued)
Las Vegas Convention and Visitors Authority, Nevada,
Revenue Bonds, Series 1999:
$ 2,695 5.750%, 7/01/15 7/09 at 101 AAA $ 2,801,102
6,035 5.750%, 7/01/16 7/09 at 101 AAA 6,235,543
6,500 5.750%, 7/01/17 7/09 at 101 AAA 6,681,350
3,535 5.750%, 7/01/18 7/10 at 100 AAA 3,617,578
4,000 6.000%, 7/01/19 7/09 at 101 AAA 4,167,840
City of Las Vegas, Nevada, Special Improvement District
No. 707, Summerlin Area, Senior Local Improvement Refunding
Bonds, 2000 Series A:
1,260 5.500%, 6/01/15 6/08 at 102 AAA 1,268,795
2,060 5.550%, 6/01/16 6/08 at 102 AAA 2,071,289
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 13.9%
4,090 Metropolitan Transportation Authority, New York, Commuter No Opt. Call AAA 4,850,576
Facilities Revenue Bonds, Series 1994A, 8.000%, 7/01/07
4,985 Metropolitan Transportation Authority, New York, Transit Facilities No Opt. Call AAA 5,918,292
Revenue Bonds, Series O, 8.000%, 7/01/07
County of Nassau, New York, General Obligations, Serial
General Improvement Bonds, Series F:
2,265 7.000%, 3/01/14 3/10 at 100 AAA 2,592,995
1,755 6.000%, 3/01/16 3/10 at 100 AAA 1,854,315
2,740 6.000%, 3/01/18 3/10 at 100 AAA 2,870,314
7,500 Nassau Health Care Corporation, Health System Revenue 8/09 at 102 AAA 7,568,100
Bonds, Series 1999 (Nassau County, New York, Guaranteed),
5.750%, 8/01/29
4,000 The City of New York, New York, General Obligation Bonds, No Opt. Call AAA 4,576,720
Fiscal 1995 Series E, 8.000%, 8/01/05
7,900 The City of New York, New York, General Obligation Bonds, 3/06 at 101 1/2 AAA 8,146,954
Fiscal 1996 Series I, 5.875%, 3/15/18
The City of New York, 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 820,526
1,710 5.750%, 8/01/10 8/02 at 101 1/2 AAA 1,761,146
5,000 The City of New York, New York, General Obligation Bonds, 2/08 at 101 AAA 4,947,150
Fiscal 1998 Series F, 5.375%, 8/01/19
7,000 New York City Municipal Water Finance Authority, Water and 6/09 at 101 AAA 7,071,610
Sewer System Revenue Bonds, Fiscal 2000 Series A,
5.750%, 6/15/31
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 3,468,986
5,750 6.000%, 7/01/24 7/09 at 101 AAA 5,972,123
10,000 New York State Finance Agency, Housing Project Mortgage 5/06 at 102 AAA 10,244,200
Revenue Bonds, 1996 Series A Refunding, 6.125%, 11/01/20
6,095 New York State Medical Care Facilities Finance Agency, 2/05 at 102 AAA 6,563,096
Mental Health Services Facilities Improvement Revenue Bonds,
1995 Series A, 6.000%, 8/15/15 (Pre-refunded to 2/15/05)
New York State Medical Care Facilities Finance Agency, New York
Hospital FHA-Insured Mortgage Revenue Bonds, Series 1994A:
3,000 6.750%, 8/15/14 (Pre-refunded to 2/15/05) 2/05 at 102 AAA 3,317,370
2,500 6.800%, 8/15/24 (Pre-refunded to 2/15/05) 2/05 at 102 AAA 2,769,100
20,000 New York State Urban Development Corporation, Correctional 1/07 at 102 AAA 20,108,400
Capital Facilities Revenue Bonds, Series 7, 5.700%, 1/01/27
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 1.4%
10,715 City of Fargo, North Dakota, Health System Revenue Bonds, 6/10 at 101 AAA 10,599,599
MertiCare Obligated Group, Series 2000A, 5.600%, 6/01/21
(WI, settling 11/08/00)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.3%
1,915 City of Cleveland, Ohio, Waterworks Improvement First Mortgage 1/02 at 102 AAA 1,991,236
Revenue Bonds, Series F, 1992A, 6.250%, 1/01/15
(Pre-refunded to 1/01/02)
<PAGE>
Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued)
Portfolio of INVESTMENTS October 31, 2000
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OKLAHOMA - 1.2%
$ 6,000 Norman Regional Hospital Authority (Oklahoma), Hospital 9/01 at 102 AAA $ 6,240,060
Revenue Bonds, Series 1991, 6.900%, 9/01/21
(Pre-refunded to 9/01/01)
3,170 Industrial Development Authority, Oklahoma, The University 10/10 at 100 Aaa 3,112,845
of Tulsa, Series 2000A, 5.375%, 10/01/20
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 3.0%
5,000 Jackson County School District No. 6, Oregon, General 6/10 at 100 AAA 4,871,250
Obligation Bonds, Series 2000, 5.250%, 6/15/20
(WI, settling 11/01/00)
City of Portland, Oregon, Airport Way Urban Renewal and
Redevelopment Bonds, 2000 Series A:
4,405 5.700%, 6/15/17 6/10 at 101 Aaa 4,523,010
3,665 5.750%, 6/15/18 6/10 at 101 Aaa 3,765,934
4,265 5.750%, 6/15/19 6/10 at 101 Aaa 4,361,688
1,375 5.750%, 6/15/20 6/10 at 101 Aaa 1,405,058
Housing Authority of Portland, Oregon, Multifamily Housing
Revenue Bonds, Series 2000, Lovejoy Station Apartments Project:
1,500 5.900%, 7/01/23 (Alternative Minimum Tax) 7/10 at 100 Aaa 1,511,280
2,520 6.000%, 7/01/33 (Alternative Minimum Tax) 7/10 at 100 Aaa 2,547,367
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.3%
12,620 Hospital Development Authority, Allegheny County, Pennsylvania, 11/10 at 102 AAA 13,360,542
Health System Insured Revenue Bonds, Series 2000A,
West Penn Allegheny Health System, 6.500%, 11/15/30
3,445 Allegheny County Residential Finance Authority, Single 11/06 at 102 Aaa 3,566,677
Family 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 9,789,563
Revenue Bonds (The Reading Hospital and Medical Center
Project), Series of 1999, 6.000%, 11/01/19
1,000 Luzerne County Industrial Development Authority, Exempt 12/04 at 102 AAA 1,077,590
Facilities Revenue Refunding Bonds, 1994 Series A (Pennsylvania
Gas and Water Company Project), 7.000%, 12/01/17
(Alternative Minimum Tax)
Commonwealth System of Higher Education (Pennsylvania),
University of Pittsburgh, University Capital Project Bonds, 1992
Series A:
1,395 6.125%, 6/01/21 (Pre-refunded to 6/01/02) 6/02 at 102 AAA 1,457,064
3,355 6.125%, 6/01/21 6/02 at 102 AAA 3,429,280
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.9%
6,500 Piedmont Municipal Power Agency (South Carolina), Electric 1/03 at 102 AAA 6,862,765
Revenue Bonds, 1992 Refunding Series, 6.300%, 1/01/22
(Pre-refunded to 1/01/03)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.8%
3,895 City of Denton, Texas, Utility System Revenue Bonds, 12/10 at 100 AAA 3,930,600
Series 2000A, 5.625%, 12/01/19
3,550 Harris County Hospital District, Texas, Refunding Revenue 8/10 at 100 AAA 3,689,444
Bonds, Series 2000, 6.000%, 2/15/16
21,790 City of Houston, Texas, Airport System Subordinate Lien 7/10 at 100 AAA 21,084,004
Revenue Bonds, Series 2000A, 5.500%, 7/01/23
(Alternative Minimum Tax) (WI, settling 11/15/00)
Tarrant County Health Facilities Development Corporation,
Hospital Revenue Bonds (Cook Children's Medical Center Project),
Series 2000A:
6,725 5.750%, 12/01/17 12/10 at 101 AAA 6,832,062
7,500 5.750%, 12/01/24 12/10 at 101 AAA 7,485,000
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 1,367,995
6,585 6.800%, 12/01/23 (Alternative Minimum Tax) 12/03 at 102 AAA 6,865,060
<PAGE>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
UTAH - 3.3%
Intermountain Power Agency (Utah), Power Supply Revenue
Refunding Bonds, 1993 Series A:
$ 9,610 5.500%, 7/01/20 7/03 at 102 A+*** $ 9,615,093
4,595 5.500%, 7/01/20 7/03 at 102 AAA 4,537,563
4,970 5.500%, 7/01/20 7/03 at 102 AAA 4,982,773
2,000 Salt Lake City, Utah, Hospital Revenue Bonds, Series 1992 8/02 at 100 AAA 1,943,880
(IHC Hospitals, Inc.), 5.500%, 2/15/21 (DD, settling 11/01/00)
3,600 State Board of Regents of Utah, Student Loan Revenue 11/03 at 102 Aaa 3,692,988
Bonds, Series 1993B, 5.900%, 11/01/13 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.2%
1,320 Vermont Education and Health Buildings Financing Agency, 12/10 at 101 AAA 1,350,492
Hospital Revenue Bonds (Fletcher Allen Health Care Project),
Series 2000A, 6.000%, 12/01/23
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 3.2%
21,250 Virginia State Housing Development Authority, Commonwealth 1/06 at 102 AAA 21,761,913
Mortgage Bonds, 1995 Series A-A4, 6.400%, 7/01/22
(Alternative Minimum Tax)
2,250 Virginia Housing Development Authority, Multifamily Housing 1/08 at 102 AAA 2,322,585
Bonds, Series 1997B, 6.050%, 5/01/17 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 7.7%
5,230 Public Utility District No. 1 of Douglas County, Washington, 9/09 at 102 AAA 5,388,155
Wells Hydro-Electric Revenue Bonds, Series 1999A,
6.125%, 9/01/29 (Alternative Minimum Tax)
3,485 Public Utility District No. 2 of Grant County, Washington, 1/06 at 102 AAA 3,525,426
Priest Rapids Hydroelectric Development Revenue Bonds,
Second Series B of 1996, 5.900%, 1/01/21
(Alternative Minimum Tax)
2,500 City of Tacoma, Washington, Sewer Revenue Bonds, 12/05 at 100 AAA 2,665,775
1995 Series B, 6.375%, 12/01/15
8,100 Washington Health Care Facilities Authority, Seattle, 2/03 at 102 AAA 8,362,197
Revenue Bonds, Series 1992 (Virginia Mason Obligated Group),
6.300%, 2/15/17
6,130 Washington Health Care Facilities Authority, Seattle, Revenue 11/02 at 102 AAA 6,460,039
Bonds, Series 1992 (Swedish Hospital Medical Center),
6.300%, 11/15/22 (Pre-refunded to 11/15/02)
10,455 Washington Public Power Supply System, Nuclear Project No. 1 7/03 at 102 AAA 10,584,119
Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17
3,750 Washington Public Power Supply System, Nuclear Project No. 1 7/03 at 102 AAA 3,797,063
Refunding Revenue Bonds, Series 1993B, 5.600%, 7/01/15
10,500 Washington Public Power Supply System, Nuclear Project No. 1 7/06 at 102 AAA 11,012,610
Refunding Revenue Bonds, Series 1996-A, 5.750%, 7/01/11
6,295 Washington Public Power Supply System, Nuclear Project No. 3 7/03 at 102 AAA 6,337,806
Refunding Revenue Bonds, Series 1993B, 5.600%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 2.8%
20,000 The County Commission of Pleasants, West Virginia, 5/05 at 102 AAA 21,087,400
Pollution Control Revenue Bonds (Monongahela Power
Company - Pleasants Station Project), 1995 Series C,
6.150%, 5/01/15
<PAGE>
Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued)
Portfolio of INVESTMENTS October 31, 2000
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
WISCONSIN - 4.6%
$ 7,000 La Crosse, Wisconsin, Resource Recovery Revenue Refunding No Opt. Call AAA $ 7,321,090
Bonds, Series 1996, Northern States Power Company Project,
6.000%, 11/01/21 (Alternative Minimum Tax)
Milwaukee County, Wisconsin, Airport Revenue Bonds,
Series 2000A:
1,325 6.000%, 12/01/20 (Alternative Minimum Tax) 12/10 at 100 Aaa 1,360,709
12,750 5.750%, 12/01/25 (Alternative Minimum Tax) 12/10 at 100 Aaa 12,640,605
2,000 Wisconsin Health and Educational Facilities Authority, 8/02 at 102 AAA 2,106,380
Revenue 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, Revenue 8/06 at 102 AAA 6,345,370
Bonds, Series 1996 (Sinai Samaritan Medical Center, Inc.
Project), 5.750%, 8/15/16
5,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/05 at 102 AAA 5,259,800
Bonds, Series 1995 (Mercy Health System Corporation),
6.125%, 8/15/13
------------------------------------------------------------------------------------------------------------------------------------
$ 820,250 Total Investments (cost $732,635,132) - 100.4% 758,337,723
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.4%
3,000 Allegheny County Industrial Development Authority (Longwood VMIG-1 3,000,000
at Oakmont Inc. Project), Series 1997D, Variable Rate
Demand Bonds, 4.600%, 7/01/27+
5,000 Louisiana Offshore Terminal Authority, Deepwater Port VMIG-1 5,000,000
Bond (LOOP Inc. Project), First Stage Series 1992A, Variable
Rate Demand Bonds, 4.600%, 9/01/08+
5,000 New York City Municipal Water Finance Authority, Water VMIG-1 5,000,000
and Sewer System Revenue Bonds, Fiscal 1996A, Variable
Rate Demand Bonds, 4.750%, 6/15/25+
5,000 Schuylkill County Industrial Development Authority, Pennsylvania A-1+ 5,000,000
(Northeastern Power Company Project), Variable Rate
Demand Bonds, 4.600%, 9/01/08+
------------------------------------------------------------------------------------------------------------------------------------
$ 18,000 Total Short-Term Investments (cost $18,000,000) 18,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (2.8)% (21,428,345)
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 754,909,378
===================================================================================================================
</TABLE>
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 (not covered by the report
of independent auditors): 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 (not covered by the report of independent
auditors): 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.
(DD) Security purchased on a delayed delivery basis.
(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.
<PAGE>
Statement of
NET ASSETS October 31, 2000
<TABLE>
<CAPTION>
INSURED INSURED PREMIER INSURED
QUALITY OPPORTUNITY INSURED INCOME PREMIUM INCOME 2
(NQI) (NIO) (NIF) (NPX)
----------------------------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C> <C> <C> <C>
Investments in municipal securities,
at market value $867,580,332 $1,855,334,639 $438,870,474 $758,337,723
Temporary investments in short-term
municipal securities, at amortized cost,
which approximates market value -- -- -- 18,000,000
Cash 9,039,410 1,977,391 403,616 2,882,944
Receivables:
Interest 14,452,104 34,888,490 8,061,374 13,423,640
Investments sold 25,757,679 3,217,222 80,000 3,802,391
Other assets 24,117 47,822 1,992 29,539
----------------------------------------------------------------------------------------------------------------------------------
Total assets 916,853,642 1,895,465,564 447,417,456 796,476,237
----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased 45,999,257 21,127,820 2,031,420 38,425,670
Accrued expenses:
Management fees 457,126 964,952 238,075 399,010
Other 366,165 527,992 147,592 456,029
Preferred share dividends payable 148,152 347,564 68,186 125,431
Common share dividends payable 2,762,544 5,795,906 1,387,737 2,160,719
----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 49,733,244 28,764,234 3,873,010 41,566,859
----------------------------------------------------------------------------------------------------------------------------------
Net assets $867,120,398 $1,866,701,330 $443,544,446 $754,909,378
==================================================================================================================================
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
==================================================================================================================================
Netasset value per Common share outstanding
(net assets less Preferred shares at liquidation
value, divided by Common shares outstanding) $ 14.51 $ 14.64 $ 14.66 $ 13.05
==================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Statement of
OPERATIONS Year Ended October 31, 2000
<TABLE>
<CAPTION>
INSURED INSURED PREMIER INSURED
QUALITY OPPORTUNITY INSURED INCOME PREMIUM INCOME 2
(NQI) (NIO) (NIF) (NPX)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME $51,762,033 $112,096,893 $26,594,198 $ 42,625,370
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 5,317,155 11,263,805 2,778,460 4,628,677
Preferred shares - auction fees 772,944 1,671,232 394,829 674,091
Preferred shares - dividend disbursing agent fees 50,138 87,884 40,308 53,853
Shareholders' servicing agent fees and expenses 90,888 141,390 33,274 53,148
Custodian's fees and expenses 119,992 192,290 89,062 111,108
Directors'/Trustees' fees and expenses 14,500 29,736 8,228 12,521
Professional fees 26,411 29,720 10,690 33,240
Shareholders' reports - printing and mailing expenses 38,945 33,890 6,072 6,767
Stock exchange listing fees 34,250 69,615 24,608 22,586
Investor relations expense 74,118 154,534 38,086 63,227
Portfolio insurance expense 7,262 139,288 -- 16,439
Other expenses 67,094 139,325 47,129 40,824
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 6,613,697 13,952,709 3,470,746 5,716,481
Custodian fee credit (77,903) (61,068) (35,023) (69,423)
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 6,535,794 13,891,641 3,435,723 5,647,058
----------------------------------------------------------------------------------------------------------------------------------
Net investment income 45,226,239 98,205,252 23,158,475 36,978,312
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain from investment transactions (5,543,070) (14,066,587) (3,333,517) (15,267,529)
Change in net unrealized appreciation
(depreciation) of investments 28,578,037 45,710,845 11,555,786 39,669,073
-----------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 23,034,967 31,644,258 8,222,269 24,401,544
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $68,261,206 $129,849,510 $31,380,744 $ 61,379,856
===================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Statement of
CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INSURED QUALITY (NQI) INSURED OPPORTUNITY (NIO)
------------------------------------- ------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/00 10/31/99 10/31/00 10/31/99
----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
<S> <C> <C> <C> <C>
Net investment income $ 45,226,239 $ 44,256,614 $ 98,205,252 $ 95,665,870
Net realized gain (loss) from investment transactions (5,543,070) (1,848,032) (14,066,587) (1,440,071)
Change in net unrealized appreciation
(depreciation) of investments 28,578,037 (70,918,815) 45,710,845 (138,439,350)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 68,261,206 (28,510,233) 129,849,510 (44,213,551)
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net investment income:
Common shareholders (34,092,803) (34,678,458) (71,509,114) (75,984,403)
Preferred shareholders (12,837,092) (8,346,002) (27,154,895) (19,526,388)
From and in excess of 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 (46,929,895) (49,100,432) (98,664,009) (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 21,331,311 (17,390,264) 31,185,501 (57,072,906)
----------------------------------------------------------------------------------------------------------------------------------
Net assets at the beginning of year 845,789,087 863,179,351 1,835,515,829 1,892,588,735
----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $867,120,398 $845,789,087 $1,866,701,330 $1,835,515,829
==================================================================================================================================
Balance of undistributed net investment income
at the end of year $ 151,140 $ 1,839,774 $ 710,123 $ 1,155,567
==================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Statement of
CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
PREMIER INSURED INCOME (NIF) INSURED PREMIUM INCOME 2 (NPX)
----------------------------------- ---------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/00 10/31/99 10/31/00 10/31/99
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
<S> <C> <C> <C> <C>
Net investment income $ 23,158,475 $ 22,396,247 $ 36,978,312 $ 35,954,517
Net realized gain (loss) from
investment transactions (3,333,517) (2,424,689) (15,267,529) 180,105
Change in net unrealized appreciation
(depreciation) of investments 11,555,786 (34,028,479) 39,669,073 (64,082,302)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 31,380,744 (14,056,921) 61,379,856 (27,947,680)
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net investment income:
Common shareholders (17,070,796) (17,326,755) (26,576,839) (27,045,477)
Preferred shareholders (6,433,995) (4,511,430) (10,748,537) (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 (23,504,791) (22,818,597) (37,325,376) (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 7,875,953 (14,797,534) 24,054,480 (63,006,680)
Net assets at the beginning of year 435,668,493 450,466,027 730,854,898 793,861,578
-----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $443,544,446 $435,668,493 $754,909,378 $730,854,898
===================================================================================================================================
Balance of undistributed net investment income
at the end of year $ 520,462 $ 853,618 $ 830,527 $ 1,181,455
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Notes to
FINANCIAL STATEMENTS
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
October 31, 2000, Insured Quality (NQI), Insured Opportunity (NIO), Premier
Insured Income (NIF) and Insured Premium Income 2 (NPX) had outstanding
when-issued and delayed delivery purchase commitments of $45,999,257,
$21,127,820, $2,031,420 and $38,425,670, respectively.
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. All monthly
tax-exempt income dividends paid during the fiscal year ended October 31, 2000,
have been designated Exempt Interest Dividends. 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 accounting principles generally
accepted in the United States. Accordingly, temporary over-distributions as a
result of these differences may occur and will be classified as either
distributions in excess of net investment income, distributions in excess of net
realized gains and/or distributions in excess of net ordinary taxable income
from investment transactions, where applicable.
<PAGE>
Notes to
FINANCIAL STATEMENTS (continued)
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 October
31, 2000, is as follows:
PREMIER INSURED
INSURED INSURED INSURED PREMIUM
QUALITY OPPORTUNITY INCOME INCOME 2
(NQI) (NIO) (NIF) (NPX)
------------------------------------------------------------------------------
Number of shares:
Series M 2,600 4,000 -- 2,080
Series T 2,600 4,000 -- 2,200
Series W 2,600 4,000 840 2,080
Series W2 -- 3,200 -- --
Series Th 2,320 4,000 2,800 2,200
Series Th2 -- 4,000 -- --
Series F 2,600 4,000 2,800 2,196
------------------------------------------------------------------------------
Total 12,720 27,200 6,440 10,756
==============================================================================
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 fiscal year ended October 31, 2000.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Organization and Offering Costs
Costs incurred by NQI, NIO and NIF in correction with their organization and
offering of Preferred shares were recorded as a reduction of the proceeds from
the sale of the shares.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
<PAGE>
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
<TABLE>
<CAPTION>
INSURED QUALITY (NQI) INSURED OPPORTUNITY (NIO)
-------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/00 10/31/99 10/31/00 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
=============================================================================================================
PREMIER INSURED INCOME (NIF) INSURED PREMIUM INCOME 2 (NPX)
------------------------------ -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/00 10/31/99 10/31/00 10/31/99
---------------------------------------------------------------------------------------------------------------
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 December 1, 2000, to shareholders of record
on November 15, 2000, as follows:
<TABLE>
<CAPTION>
PREMIER INSURED
INSURED INSURED INSURED PREMIUM
QUALITY OPPORTUNITY INCOME INCOME 2
(NQI) (NIO) (NIF) (NPX)
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Dividend per share $.0730 $.0715 $.0720 $.0580
===========================================================================================================
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities for the fiscal year ended October
31, 2000, were as follows:
PREMIER INSURED
INSURED INSURED INSURED PREMIUM
QUALITY OPPORTUNITY INCOME INCOME 2
(NQI) (NIO) (NIF) (NPX)
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases:
Long-term municipal securities $242,944,235 $330,850,707 $88,408,225 $434,243,478
Short-term municipal securities 90,900,000 151,000,000 84,600,000 69,250,000
Sales and maturities:
Long-term municipal securities 200,448,503 293,198,871 92,607,729 405,700,469
Short-term municipal securities 112,875,000 168,205,000 95,100,000 70,550,000
===========================================================================================================
</TABLE>
At October 31, 2000, the identified cost of investments owned for federal income
tax purposes were as follows:
<TABLE>
<CAPTION>
PREMIER INSURED
INSURED INSURED INSURED PREMIUM
QUALITY OPPORTUNITY INCOME INCOME 2
(NQI) (NIO) (NIF) (NPX)
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$838,808,055 $1,783,272,094 $418,398,085 $750,665,132
=================================================================================================================
</TABLE>
<PAGE>
Notes to
FINANCIAL STATEMENTS (continued)
At October 31, 2000, 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:
<TABLE>
<CAPTION>
PREMIER INSURED
INSURED INSURED INSURED PREMIUM
QUALITY OPPORTUNITY INCOME INCOME 2
(NQI) (NIO) (NIF) (NPX)
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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 --
2008 5,543,070 14,474,182 3,333,517 15,327,981
----------------------------------------------------------------------------------------------------------
Total $7,391,102 $14,503,895 $5,758,206 $31,175,567
==========================================================================================================
</TABLE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at October 31, 2000, were as follows:
<TABLE>
<CAPTION>
PREMIER INSURED
INSURED INSURED INSURED PREMIUM
QUALITY OPPORTUNITY INCOME INCOME 2
(NQI) (NIO) (NIF) (NPX)
-----------------------------------------------------------------------------------------------------------
Gross unrealized:
<S> <C> <C> <C> <C>
appreciation $32,982,659 $82,168,044 $23,490,596 $26,553,104
depreciation (4,210,382) (10,105,499) (3,018,207) (880,513)
-----------------------------------------------------------------------------------------------------------
Net unrealized appreciation $28,772,277 $72,062,545 $20,472,389 $25,672,591
===========================================================================================================
</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.
<PAGE>
7. COMPOSITION OF NET ASSETS
At October 31, 2000, net assets consisted of:
<TABLE>
<CAPTION>
PREMIER INSURED
INSURED INSURED INSURED PREMIUM
QUALITY OPPORTUNITY INCOME INCOME 2
(NQI) (NIO) (NIF) (NPX)
------------------------------------------------------------------------------------------------------------------
<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 527,209,651 1,127,621,948 267,117,059 490,309,287
Balance of undistributed net investment income 151,140 710,123 520,462 830,527
Accumulated net realized gain (loss) from
investment transactions (7,418,173) (15,506,658) (5,758,206) (31,205,567)
Net unrealized appreciation of investments 28,799,348 73,065,308 20,472,389 25,702,591
-------------------------------------------------------------------------------------------------------------------
Net assets $867,120,398 $1,866,701,330 $443,544,446 $754,909,378
===================================================================================================================
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>
8. INVESTMENT COMPOSITION
At October 31, 2000, the revenue sources by municipal purpose, expressed as a
percent of long-term investments, were as follows:
<TABLE>
<CAPTION>
PREMIER INSURED
INSURED INSURED INSURED PREMIUM
QUALITY OPPORTUNITY INCOME INCOME 2
(NQI) (NIO) (NIF) (NPX)
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education and Civic Organizations 2% 1% 2% 3%
Healthcare 19 15 13 14
Housing/Multifamily 5 2 4 8
Housing/Single Family 4 10 2 7
Tax Obligation/General 3 2 2 6
Tax Obligation/Limited 10 3 17 15
Transportation 21 13 10 17
U.S. Guaranteed 19 31 33 11
Utilities 14 12 17 16
Water and Sewer 3 11 -- 3
------------------------------------------------------------------------------------------------------------
100% 100% 100% 100%
============================================================================================================
</TABLE>
All of the long-term investments owned by the Funds are either covered by
insurance issued by several private insurers or are backed by an escrow or trust
containing U.S. Government or U.S. Government agency securities, both of which
ensure the timely payment of principal and interest in the event of default.
Such insurance or escrow, however, does not guarantee the market value of the
municipal securities or the value of the Funds' shares.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
<PAGE>
FINANCIAL HIGHLIGHTS
Selected data for a Common share outstanding throughout each year ended October
31:
<TABLE>
<CAPTION>
Investment Operations Less Distributions
------------------------------- -----------------------------------------------------
From From
and In and In
Net Net Excess of Excess of
Net Investment Investment Capital Capital
Realized/ Income to Income to Gains to Gains to
Beginning Net Unrealized Common Preferred Common Preferred
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) Total holders holders+ holders holders+ Total
==============================================================================================================================
INSURED QUALITY (NQI)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 $13.95 $1.20 $ .60 $1.80 $ (.90) $(.34) $ -- $ -- $(1.24)
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)
INSURED OPPORTUNITY (NIO)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 14.25 1.21 .39 1.60 (.88) (.33) -- -- (1.21)
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)
PREMIER INSURED INCOME (NIF)
-----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 14.25 1.20 .43 1.63 (.89) (.33) -- -- (1.22)
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)
INSURED PREMIUM INCOME 2 (NPX)
-----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 12.40 .99 .66 1.65 (.71) (.29) -- -- (1.00)
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)
=============================================================================================================================
</TABLE>
Total Returns
---------------------
Organization
and Offering
Costs and Based
Preferred Ending Based on
Share Net Ending on Net
Underwriting Asset Market Market Asset
Discounts Value Value Value* Value*
================================================================================
INSURED QUALITY (NQI)
--------------------------------------------------------------------------------
Year Ended 10/31:
2000 $ -- $14.51 $13.6875 10.94% 10.86%
1999 (.02) 13.95 13.1875 (9.65) (6.77)
1998 -- 16.02 15.6250 6.13 8.43
1997 -- 15.68 15.6250 10.57 8.22
1996 -- 15.50 15.1250 8.54 5.49
INSURED OPPORTUNITY (NIO)
--------------------------------------------------------------------------------
Year Ended 10/31:
2000 -- 14.64 13.0625 5.06 9.25
1999 (.01) 14.25 13.3125 (14.71) (5.33)
1998 -- 16.04 16.6250 12.03 7.99
1997 -- 15.78 15.7500 10.18 8.32
1996 -- 15.54 15.2500 9.77 6.50
PREMIER INSURED INCOME (NIF)
--------------------------------------------------------------------------------
Year Ended 10/31:
2000 -- 14.66 13.5000 9.92 9.41
1999 (.02) 14.25 13.1250 (17.33) (6.42)
1998 -- 16.18 16.8750 14.06 8.35
1997 -- 15.84 15.6875 12.09 8.56
1996 -- 15.49 14.8750 9.23 5.93
INSURED PREMIUM INCOME 2 (NPX)
--------------------------------------------------------------------------------
Year Ended 10/31:
2000 -- 13.05 11.2500 4.35 11.35
1999 -- 12.40 11.5000 (11.16) (7.21)
1998 -- 14.10 13.6875 16.35 9.28
1997 -- 13.60 12.4375 15.45 10.15
1996 -- 13.04 11.4380 6.95 5.70
================================================================================
<TABLE>
<CAPTION>
Ratios/Supplemental Data
----------------------------------------------------------------------
Before Credit
-------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average 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++
=======================================================================================
INSURED QUALITY (NQI)
---------------------------------------------------------------------------------------
Year Ended 10/31:
<S> <C> <C> <C> <C> <C>
2000 $867,120 1.24% 8.48% .78% 5.31%
1999 845,789 1.19 7.67 .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
INSURED OPPORTUNITY (NIO)
---------------------------------------------------------------------------------------
Year Ended 10/31:
2000 1,866,701 1.20 8.47 .76 5.34
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
PREMIER INSURED INCOME (NIF)
--------------------------------------------------------------------------------------
Year Ended 10/31:
2000 443,544 1.26 8.37 .79 5.29
1999 435,668 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
INSURED PREMIUM INCOME 2 (NPX)
--------------------------------------------------------------------------------------
Year Ended 10/31:
2000 754,909 1.22 7.87 .77 5.00
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
======================================================================================
</TABLE>
<TABLE>
<CAPTION>
Ratios/Supplemental Data
-------------------------------------------------------------------------------- Municipal Auction Rate Cumulative
After Credit** Preferred Stock at End of Year
---------------------------------------------------- -----------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Net Assets Net Assets Total Total Aggregate Liquidation
Applicable Applicable Net Assets Net Assets Portfolio Amount and Market Asset
to Common to Common Including Including Turnover Outstanding Value Coverage
Shares++ Shares++ Preferred++ Preferred++ Rate (000) Per Share Per Share
====================================================================================================================================
INSURED QUALITY (NQI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2000 1.23% 8.49% .77% 5.32% 24% $318,000 $25,000 $68,170
1999 1.18 7.67 .79 5.11 27 318,000 25,000 66,493
1998 1.13 7.49 .79 5.21 16 260,000 25,000 82,998
1997 1.15 7.88 .79 5.44 8 260,000 25,000 81,573
1996 1.17 7.98 .80 5.50 33 260,000 25,000 80,702
INSURED OPPORTUNITY (NIO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 1.20 8.48 .76 5.34 16 680,000 25,000 68,629
1999 1.16 7.67 .77 5.07 26 680,000 25,000 67,482
1998 1.13 7.60 .77 5.17 12 600,000 25,000 78,858
1997 1.15 7.92 .78 5.34 8 600,000 25,000 77,574
1996 1.16 8.01 .78 5.38 18 600,000 25,000 76,572
PREMIER INSURED INCOME (NIF)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 1.24 8.39 .79 5.30 21 161,000 25,000 68,873
1999 1.18 7.50 .79 5.01 32 161,000 25,000 67,650
1998 1.16 7.29 .79 5.00 10 140,000 25,000 80,440
1997 1.17 7.61 .80 5.18 4 140,000 25,000 79,138
1996 1.18 7.70 .80 5.22 3 140,000 25,000 77,881
INSURED PREMIUM INCOME 2 (NPX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 1.20 7.88 .77 5.01 55 268,900 25,000 70,185
1999 1.21 7.11 .79 4.64 35 268,900 25,000 67,949
1998 1.20 6.89 .79 4.53 31 268,900 25,000 73,806
1997 1.23 7.55 .80 4.89 37 268,900 25,000 72,073
1996 1.36 7.53 .86 4.78 32 268,900 25,000 70,131
====================================================================================================================================
</TABLE>
* 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.
See accompanying notes to financial statements.
<PAGE>
Build Your Wealth
AUTOMATICALLY
SIDEBAR TEXT: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
How shares are purchased
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial adviser 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 12-month period ended October 31, 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.
For over a century, generations of Americans have relied on Nuveen Investments
to help them grow and keep the money they've earned. Financial advisors,
investors and their families have associated Nuveen Investments with quality,
expertise and dependability since 1898. That is why financial advisors have
entrusted the assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen Investments' products and services can help
you preserve your financial security, talk with your financial advisor, or call
us at (800) 257-8787 for more information, including a prospectus where
applicable. Please read that information carefully before you invest.
Invest well. Look ahead. LEAVE YOUR MARK.(SM)
Logo: NUVEEN Investments
Nuveen Investments o 333 West Wacker Drive FAN-4-10-00
Chicago, IL 60606 o www.nuveen.com
