Nuveen Exchange-Traded Funds
Providing tax-free income to help you live your dreams.
NUVEEN FLORIDA INVESTMENT QUALITY MUNICIPAL FUND
NUVEEN FLORIDA QUALITY INCOME MUNICIPAL FUND
NUVEEN INSURED FLORIDA PREMIUM INCOME MUNICIPAL FUND
SEMIANNUAL REPORT/DECEMBER 31, 1995
Photographic image of man seated at breakfast table with wife standing behind
him.
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
10 Fund performance
12 Commonly used terms
14 Shareholder meeting report
15 Portfolio of investments
28 Statement of net assets
29 Statement of operations
30 Statement of changes in net assets
32 Notes to financial statements
40 Financial highlights
<PAGE>
Dear shareholder
Photographic image of Richard Franke, Chairman of Nuveen
"Over time, municipal bonds have proven to be a valuable and dependable
component of successful investment programs."
During 1995, we enjoyed a strong rebound in the bond markets--a welcome change
from 1994, which was one of the most volatile periods in bond market history.
In fact, 1995 turned out to be one of the best years for bonds in a decade.
The juxtaposition of these two contrasting periods serves as a reminder that
weathering the ups and downs of the markets is a normal part of the investment
process. We can gain a better perspective on this process if we remember one
of the basic principles of investing: A financial plan that focuses on your
long-term goals can minimize the impact of short-term market volatility.
Because they offer steady tax-free income and diversification across market
sectors, municipal bond funds continue to be an attractive way to invest for
the long term. Throughout the past year, we have kept our sights focused on
successfully meeting your objectives: seeking to provide you with a solid
source of current income and enhanced share price relative to the market as a
whole.
As of December 31, 1995, the current annual yields on share prices for the
funds covered in this report ranged from 6.00% to 6.24%. To match these
yields, an investor in the 36% federal income tax bracket would have had to
earn at least 9.38% on taxable alternatives. Without question, taxable yields
at this level on investments of comparable quality are difficult to achieve in
today's markets.
<PAGE>
Reflecting the rebound in the bond market, each of these funds reported
gains in net asset value over December 31, 1994, as well as substantial
increases in share price. The 12-month total return on net asset value,
reflecting share price gains plus reinvested dividend income, ranged from
16.65% to 29.68%, which translates to 20.60% to 33.34% on a taxable-equivalent
basis. These performance results remind us of the important role that
municipal bonds--and the tax-free income they provide--can play as part of an
investment strategy focused on diversification and long-term performance.
The value and dependability of your municipal bond investments are enhanced
by the fact that you have chosen tax-free exchange-traded funds managed by
Nuveen. We offer a combination of professional management, award-winning
research, and shareholder service that distinguishes Nuveen as a fund manager.
Our portfolio management strategy, which we call value investing, relies on
a disciplined approach to security selection and portfolio construction
designed to deliver above-market performance by emphasizing securities that
are underpriced or undervalued by the market. This approach is supported by
the strength of Nuveen Research, which provides the insights and experience to
assist portfolio managers in identifying and selecting bonds with strong
credit quality. Our research professionals continually monitor our holdings in
order to alert portfolio managers concerning changes that may affect quality.
Nuveen also prides itself on its exceptional service to shareholders.
Through annual and semiannual reports, regular statements, and our toll-free
information lines, our communication programs help us stay in touch with your
needs and concerns. We also provide support to financial advisers across the
nation by supplying them with the information they need to answer your
questions and recommend products to meet your needs.
As you review the following pages detailing the solid performance of your
funds, we trust you will come away with the feeling that these results,
coupled with Nuveen's continued pledge of premium service, add up to a
rewarding investment experience. We look forward to serving your tax-free
investment needs in the future.
Sincerely,
Richard J. Franke
Chairman of the Board
February 15, 1996
<PAGE>
Answering your questions
Tom Spalding, head of Nuveen's portfolio management team, offers insights into
the bond market recovery and the outlook for 1996.
How has the recovery of the municipal bond market affected Nuveen funds?
In short, the recent market recovery has helped most Nuveen funds regain some
of the share price they lost during 1994. To put this in perspective, the
setback in the bond market in 1994--which goes on record as one of the most
volatile periods in decades--was the first downturn experienced by many Nuveen
exchange-traded fund investors, and some reacted by selling their shares.
This, in turn, drove share prices down even further. Since the beginning of
the recovery in early 1995, however, municipal bond prices have increased, and
most Nuveen funds have seen their prices rise 12% to 15%. Because of their
capital structure, leveraged funds such as the ones covered in this report
experienced greater price declines in 1994 than unleveraged funds, and they
generally responded more quickly to the stabilizing interest rate environment
with recovering prices in 1995.
<PAGE>
Photographic image of Tom Spalding, Portfolio Manager at Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on developments in the municipal market.
Why do these funds continue to trade at a discount despite the recovery?
To understand why this is happening, it may be helpful to remember that each
share has two prices: the net asset value (NAV), which represents the
underlying value of the fund, and the share price, which reflects the market's
assessment of the fund.
As the market turned around in 1995, net asset values appreciated more
quickly than share prices. This is typical of a market that sometimes takes
time to recognize underlying value balanced against the various factors that
affect share price, such as interest rates, inflation forecasts, the relative
strength of the stock market, and legislative and tax outlooks.
Nuveen investors should be aware that the net asset values for the funds
covered in this report remain quite strong. For long-term investors, in fact,
the current period may present a buying opportunity, as shares can be
purchased at discount prices and at a time when the bond market is strong.
<PAGE>
What does Nuveen see as the impact of the flat tax proposals?
We have been closely monitoring the various flat tax proposals currently being
debated in Congress and their implications for tax-free funds. Four major tax
reform proposals are currently under discussion, all with the common goal of
simplifying the federal tax code and increasing incentives for saving and
investment. It is important to note that none of the proposals has gained a
strong consensus and that implementation of any measure that manages to pass
both houses is at least two years away. We believe that some action on the tax
reform front is likely, as federal tax laws are constantly being reevaluated
and revised, although changes of the magnitude outlined in these proposals are
rare.
As we look at the bond market today, we can see some evidence that the
market is already compensating investors for the uncertainty of the tax reform
situation. Yields on municipal bonds are currently at levels equal to 90% or
more of long-term Treasury bond yields, an historically high position; the
typical yield ratio is 80-85%. On average, current municipal yields are
comparable to taxable yields in the 10% range, providing good value that is
difficult to match.
Once the tax reform issue is resolved, we're confident that municipal
bonds--because of their high credit quality and attractive yields--will
continue to hold a strategic place in the prudent investor's portfolio. The
importance of municipal bonds is enhanced by the integral role they play in
maintaining our way of life in this country. Our cities, counties, and states
will always have a need for financing to build and upgrade projects such as
roads, hospitals, and water treatment systems, and municipal bonds will
continue to be an essential way to match America's long-term needs for capital
improvements with investors' long-term needs for secure income.
<PAGE>
What is Nuveen's outlook as we head into 1996?
Inflation remains low, and the economy seems to be expanding at a reasonable
pace. While both of these factors can change and have an impact on the bond
market, the current environment is favorable for bonds. Although the supply of
municipal bonds is down from past years, demand from institutional investors
such as insurance companies was strong in 1995, contributing to the rebound in
municipal prices. If we experience continued slow and steady economic growth,
combined with low inflation and stable interest rates, that should attract
greater numbers of individual investors as well.
What does Nuveen mean by "value investing"? Where are Nuveen analysts finding
value today?
At Nuveen, we define value investing as a disciplined approach to security
selection and portfolio construction designed to deliver above-market
performance by emphasizing securities that offer good intrinsic value but that
are underpriced or undervalued by the market. Our value investing approach
concentrates on identifying individual bonds with current yields, prices,
credit quality, and future prospects that are exceptionally attractive in
relation to other bonds in the market.
As we search for value in the market today, our analysts continue to assess
investment potential across the entire spectrum of geographical and sector
opportunities. During 1995, we saw many credit upgrades on portfolio holdings,
meaning that our judgments about credit quality have been rewarded. We
currently favor revenue bonds that offer a dedicated revenue stream (such as
those issued for tollways or recycling plants) over general obligation bonds,
which rely on the taxing power of a state or municipality.
One example of revenue bonds that have performed exceptionally well for us
recently are those issued for the Denver International Airport. Although the
well-publicized delay in the opening of this new airport negatively affected
its outstanding debt, we at Nuveen did our own research, focusing on long-term
factors, and were satisfied that the airport would meet or exceed traffic
projections while continuing as a major hub for United Airlines. Our
expectation that the airport's debt would, in fact, increase in value has
happened, to the benefit of our shareholders.
<PAGE>
<TABLE>
NUVEEN FLORIDA INVESTMENT QUALITY MUNICIPAL FUND
NQF
In keeping with the Fund's objective of providing dependable tax-free income,
shareholders enjoyed 12 months of stable dividends. In addition, shareholders
received a capital gains distribution in December 1995.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
1/09/95 $0.0825
2/09/95 $0.0825
3/09/95 $0.0825
4/07/95 $0.0825
5/09/95 $0.0825
6/13/95 $0.0825
7/12/95 $0.0825
8/11/95 $0.0825
9/13/95 $0.0825
10/11/95 $0.0825
11/13/95 $0.0825
12/13/95 $0.0825 $0.0038
<CAPTION>
FUND HIGHLIGHTS 12/31/95
<S> <C>
Yield 6.24%
Taxable-equivalent yield 9.75%
Annual total return on NAV 16.65%
Taxable-equivalent total return 20.60%
Federal tax rate 36.00%
Share price $15.875
NAV $15.89
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN FLORIDA QUALITY INCOME MUNICIPAL FUND
NUF
While the dividend income remained attractive compared with other fixed income
alternatives, the Fund adjusted its monthly level twice during the year,
seeking a level in line with its earnings.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
1/04/95 $0.0760
2/09/95 $0.0790
3/09/95 $0.0790
4/07/95 $0.0790
5/09/95 $0.0790
6/13/95 $0.0790
7/12/95 $0.0790
8/11/95 $0.0770
9/13/95 $0.0770
10/11/95 $0.0770
11/13/95 $0.0770
12/13/95 $0.0770
<CAPTION>
FUND HIGHLIGHTS 12/31/95
<S> <C>
Yield 6.16%
Taxable-equivalent yield 9.63%
Annual total return on NAV 19.62%
Taxable-equivalent total return 23.47%
Federal tax rate 36.00%
Share price $15.00
NAV $15.84
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN INSURED FLORIDA PREMIUM INCOME MUNICIPAL FUND
NFL
In keeping with the Fund's objective of providing dependable tax-free income,
shareholders enjoyed 12 months of stable dividends.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
1/03/95 $0.0650
2/09/95 $0.0650
3/09/95 $0.0650
4/07/95 $0.0650
5/09/95 $0.0650
6/13/95 $0.0650
7/12/95 $0.0650
8/11/95 $0.0650
9/13/95 $0.0650
10/11/95 $0.0650
11/13/95 $0.0650
12/13/95 $0.0650
<CAPTION>
FUND HIGHLIGHTS 12/31/95
<S> <C>
Yield 6.00%
Taxable-equivalent yield 9.38%
Annual total return on NAV 29.68%
Taxable-equivalent total return 33.34%
Federal tax rate 36.00%
Share price $13.00
NAV $15.11
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
Commonly used terms
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, December 31, 1995) divided by its closing price per share
on that date.
Taxable equivalent yield
The return an investor subject to a given federal income tax rate would need
to obtain from a fully taxable investment to equal the fund's stated
annualized yield on share price. In this report, the tax rate is assumed to be
36%, based on 1995 incomes of $117,950-$256,500 for investors filing singly,
$143,600-$256,500 for those filing jointly.
Net Asset Value (NAV)
The market value of all securities and other assets held by an exchange-traded
fund, minus any liabilities. The NAV per share is the fund's net assets, less
the value of its preferred shares, divided by its total number of common
shares outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if
any.
Taxable equivalent total return
The total return an investor subject to a given state and federal income tax
rate would need to obtain from a fully taxable investment to equal the Fund's
stated total return on NAV.
Leverage
A technique used to enhance the income produced for common shareholders by a
long-term municipal bond fund through the issuance of short-term preferred
shares. The proceeds from the sale of the preferred shares can be used to
purchase additional long-term bonds, thus increasing the portfolio's income
stream. Changes in net asset value, both up and down, are also magnified by
leverage.
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as are deemed advisable. No
shares were repurchased during the 6-month period ended December 31, 1995. Any
future repurchases will be reported to shareholders.
<PAGE>
<TABLE>
SHAREHOLDER MEETING REPORT
On December 14, 1995, the following Nuveen Exchange-Traded Funds held an
Annual Meeting of Shareholders. At the meeting, shareholders voted to elect
directors of the Funds and to ratify selection of Ernst & Young L.L.P. as the
auditors for the Funds. The directors elected at the meeting include: Lawrence
H. Brown, Richard J. Franke, Anne E. Impellizzeri, and Peter R. Sawers.
<CAPTION>
NQF NUF NFL
<S> <C> <C> <C>
Approval of the DIRECTORS
was reached as follows:
Lawrence H. Brown
For 14,689,652 13,081,790 12,974,735
Abstain 130,209 95,436 175,967
---------- ---------- ----------
Total 14,819,861 13,177,226 13,150,702
========== ========== ==========
Richard J. Franke
For 14,701,983 13,086,091 12,962,619
Abstain 117,878 91,135 188,083
---------- ---------- ----------
Total 14,819,861 13,177,226 13,150,702
========== ========== ==========
Anne E. Impellizzeri
For 14,690,765 13,088,327 12,973,587
Abstain 129,096 88,899 177,115
---------- ---------- ----------
Total 14,819,861 13,177,226 13,150,702
========== ========== ==========
Peter R. Sawers
For 14,699,831 13,090,513 12,979,249
Abstain 120,030 86,713 171,453
---------- ---------- ----------
Total 14,819,861 13,177,226 13,150,702
========== ========== ==========
Ratification of auditors
was reached as follows:
For 14,600,657 12,975,170 12,915,905
Against 47,595 53,945 80,402
Abstain 171,609 148,111 154,395
---------- ---------- ----------
Total 14,819,861 13,177,226 13,150,702
========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN FLORIDA INVESTMENT QUALITY MUNICIPAL FUND (NQF)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 4,750,000 Florida Housing Finance Agency, Single Family
Mortgage, Alternative Minimum Tax,
5.875%, 1/01/27 1/04 at 100 AAA $ 4,713,140
10,750,000 Florida Housing Finance Agency, Alternative
Minimum Tax, 6.200%, 7/01/27 1/06 at 102 Aa 10,959,733
2,000,000 Florida Housing Finance Agency, 6.400, 6/01/24 6/02 at 103 AAA 2,077,220
Florida Keys Aqueduct Authority, Water Revenue:
10,165,000 6.750%, 9/01/21 (Pre-refunded to 9/01/01) 9/01 at 101 Aaa 11,540,731
835,000 6.750%, 9/01/21 9/01 at 101 Aaa 919,360
Florida State Board of Education:
6,955,000 6.000%, 6/01/20 6/05 at 101 Aa 7,241,755
2,030,000 6.700%, 6/01/22 (Pre-refunded to 6/01/01) 6/01 at 101 Aa 2,283,628
2,285,000 5.875%, 6/01/23 6/03 at 101 Aa 2,344,341
10,000,000 Florida General Obligation, Jacksonville
Transportation, 7.000%, 7/01/13 7/97 at 102 Aa 10,626,300
6,845,000 Brevard County Housing Finance Authority, Single
Family Mortgage, 7.000%, 9/01/23 3/01 at 102 Aaa 7,335,444
2,810,000 Broward County Public Improvement,
12.500%, 1/01/04 No Opt. Call Aa 4,266,845
5,245,000 Broward County Housing Finance Authority
(GNMA and FNMA), Alternative Minimum Tax,
7.350%, 3/01/23 3/01 at 102 AAA 5,548,948
7,475,000 Broward County School Board, Certificates of
Participation, 6.500%, 7/01/11 7/01 at 102 Aaa 8,158,664
3,000,000 Cape Canaveral Hospital District, 6.875%, 1/01/21 1/01 at 102 Aaa 3,299,550
1,500,000 Cape Coral Health Facilities Authority (The Cape
Coral Medical Center), 7.500%, 11/15/21 11/03 at 102 Caa 1,230,000
11,000,000 Charlotte County Utility System, 7.000%, 10/01/14
(Pre-refunded to 10/01/01) 10/01 at 102 Aaa 12,732,500
1,500,000 Coral Springs Improvement District, General
Obligation, Water and Sewer, 5.500%, 6/01/14 6/02 at 102 Aaa 1,513,500
Collier County Water-Sewer District:
7,345,000 6.500%, 7/01/21 (Pre-refunded to 7/01/99) 7/99 at 102 Aaa 8,067,895
4,155,000 6.500%, 7/01/21 7/99 at 102 Aaa 4,471,029
3,700,000 Dade County Public Improvement,
12.000%, 10/01/98 No Opt. Call Aaa 4,461,830
4,800,000 Dade County (Miami International Airport),
Alternative Minimum Tax, 6.750%, 10/01/06 10/98 at 102 Aa 5,175,120
Dade County Housing Finance Authority, Single
Family Mortgage, Alternative Minimum Tax:
1,720,000 7.750%, 9/01/22 9/00 at 102 Aaa 1,833,228
765,000 7.250%, 9/01/23 3/01 at 102 Aaa 808,131
1,000,000 6.550%, 10/01/27 4/05 at 102 AAA 1,035,310
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 6,750,000 Dade County School District, 7.375%, 7/01/08
(Pre-refunded to 7/01/99) 7/99 at 102 Aaa $ 7,605,765
2,395,000 Dade County (Courthouse Center), 6.300%, 4/01/14 4/04 at 102 A 2,587,295
3,000,000 Dade County Water and Sewer System,
5.500%, 10/01/25 10/05 at 102 Aaa 3,026,880
7,000,000 Escambia County Health Facilities Authority
(Baptist Hospital), 8.700%, 10/01/14 10/98 at 102 BBB+ 7,784,140
995,000 Fort Myers Special Assessment, Geographic Area
No. 24 Improvement, 7.100%, 7/01/06 7/01 at 102 BBB- 1,046,571
Greater Orlando Aviation Authority, Alternative
Minimum Tax:
1,315,000 7.400%, 10/01/06 10/96 at 102 A1 1,368,165
5,000,000 5.500%, 10/01/18 10/03 at 102 Aaa 4,996,300
2,000,000 Green Cove Springs Utilities, 6.750%, 10/01/10 10/01 at 102 Aaa 2,245,340
3,530,000 Halifax Hospital Medical Center (Daytona Beach
Hospital), 6.750%, 10/01/06 (Pre-refunded
to 10/01/01) 10/01 at 102 Aaa 4,029,566
5,000,000 Hernando County Criminal Justice Complex,
Financing Program, 7.650%, 7/01/16 No Opt. Call Aaa 6,636,850
4,000,000 Hillsborough County Aviation Authority (Tampa
International Airport), 6.900%, 10/01/11 10/99 at 102 Aaa 4,400,760
10,000,000 Jacksonville Electric Authority (St. John's River
Power Park System), 6.000%, 10/01/15 10/99 at 100 Aa 10,212,400
11,000,000 Jacksonville Health Facilities Authority (Daughters
of Charity Health System - St. Vincent),
7.500%, 11/01/15 (Pre-refunded to 11/01/00) 11/00 at 102 Aaa 12,806,420
11,000,000 Jacksonville Health Facilities Authority (St. Luke's
Hospital Association), 7.125%, 11/15/20 11/01 at 102 AA+ 12,160,500
Lee County Solid Waste System, Alternative
Minimum Tax:
6,500,000 7.000%, 10/01/05 10/01 at 102 Aaa 7,310,030
4,750,000 7.000%, 10/01/06 10/01 at 102 Aaa 5,307,033
4,385,000 Leon County Housing Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
7.300%, 4/01/21 4/01 at 102 Aaa 4,641,829
3,690,000 Manatee County Housing Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
7.600%, 11/01/26 11/05 at 105 Aaa 4,101,066
10,620,000 Martin County Pollution Control (Florida Power &
Light Company), 7.300%, 7/01/20 7/00 at 102 Aaa 12,043,292
1,000,000 North Springs Improvement District Water and
Sewer, General Obligation, 7.000%, 10/01/09 No Opt. Call Aaa 1,204,340
7,925,000 Orange County Health Facilities Authority
(Adventist Health System/Sunbelt),
6.750%, 11/15/21 11/01 at 102 Aaa 8,782,485
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 4,500,000 Orange County Tourist Development,
6.000%, 10/01/21 10/02 at 100 Aaa $ 4,690,755
2,500,000 Orange County Water and Wastewater,
7.750%,10/01/07 (Pre-refunded to 10/01/97) 10/97 at 102 Aaa 2,716,350
Orange County Housing Finance Authority
(GNMA), Alternative Minimum Tax:
3,785,000 7.250%, 9/01/11 3/01 at 103 AAA 4,041,358
8,810,000 7.375%, 9/01/24 3/01 at 103 AAA 9,406,613
Orlando Utilities Commission, Water and Electric
System:
5,000,000 6.000%, 10/01/10 No Opt. Call Aa1 5,547,450
2,450,000 5.000%, 10/01/23 10/99 at 100 Aa 2,338,452
750,000 5.000%, 10/01/23 10/02 at 101 Aa1 715,853
Orlando and Orange County Expressway Authority:
14,660,000 7.500%, 7/01/16 (Pre-refunded to 7/01/96) 7/96 at 102 Aaa 15,242,442
1,500,000 5.250%, 7/01/19 7/03 at 102 Aaa 1,486,995
500,000 Palm Beach County General Obligation,
4.600%, 7/01/07 No Opt. Call Aa 487,570
Palm Beach County Health Facilities Authority
(JFK Medical Center):
6,715,000 8.875%, 12/01/18 (Pre-refunded to 12/01/98) 12/98 at 102 BBB 7,676,387
4,650,000 8.875%, 12/01/18 12/98 at 102 BBB 5,197,584
1,400,000 Pembroke Pines Capital Improvement,
6.000%, 10/01/25 10/04 at 102 Aaa 1,475,320
6,000,000 Royal Palm Beach Village Utility System,
6.875%, 10/15/15 10/01 at 102 Aaa 6,764,340
5,000,000 St. John's County Industrial Development Authority
(Flagler Hospital), 6.000%, 8/01/22 8/02 at 102 A 5,033,000
5,000,000 St. Lucie County Utility System, 7.125%, 10/01/17
(Pre-refunded to 10/01/00) 10/00 at 102 Aaa 5,729,500
4,000,000 St. Petersburg Health Facilities Authority (St.
Joseph's Hospital Inc.), 7.000%, 12/01/15 12/01 at 102 Aaa 4,541,360
5,250,000 Seminole County Water and Sewer System,
6.000%, 10/01/19 No Opt. Call Aaa 5,923,313
1,175,000 Tallahassee Consolidated Utility System,
5.750%, 10/01/19 10/05 at 100 Aa 1,197,277
4,500,000 Tampa (The Florida Aquarium Project),
7.750%, 5/01/27 5/02 at 102 N/R 4,895,505
Tampa Sports Authority:
1,250,000 5.750%, 10/01/20 No Opt. Call Aaa 1,368,062
1,250,000 5.750%, 10/01/25 No Opt. Call Aaa 1,374,625
4,350,000 Tampa Water and Sewer System, 6.000%, 10/01/17 10/02 at 101 Aaa 4,795,745
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Volusia County Airport System (Daytona Beach
Regional Airport), Alternative Minimum Tax:
$ 475,000 7.000%, 10/01/21 (Pre-refunded to 10/01/00) 10/00 at 102 Aaa $ 541,760
1,425,000 7.000%, 10/01/21 10/00 at 102 Aaa 1,588,846
5,650,000 Volusia County School Board, 6.750%, 8/01/11
(Pre-refunded to 8/01/01) 8/01 at 102 Aaa 6,450,379
$327,030,000 Total Investments - (cost $326,893,672) - 98.1% 358,168,069
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.3%
$ 1,000,000 Hillsborough County Industrial Development
Authority (Tampa Electric Company), Variable
Rate Demand Bonds, 5.900%, 9/01/25t Aa-2 1,000,000
200,000 Pinellas County, Pooled Hospital Loan Program,
Variable Rate Demand Bonds, 5.950%, 12/01/15t VMIG-1 200,000
$ 1,200,000 Total Temporary Investments - 0.3% 1,200,000
============
Other Assets Less Liabilities - 1.6% 5,896,173
Net Assets - 100% $365,264,242
============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 48 $245,792,198 68%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 14 75,557,224 21
PORTFOLIO OF A+ A1 1 1,368,165 1
INVESTMENTS A, A- A, A2, A3 2 7,620,295 2
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 4 21,704,682 6
TEMPORARY Other Other 1 1,230,000 1
INVESTMENTS): Non-rated Non-rated 1 4,895,505 1
TOTAL 71 $358,168,069 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN FLORIDA QUALITY INCOME MUNICIPAL FUND (NUF)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,000,000 Florida Department of General Services, General
Obligation, 6.600%, 7/01/17 7/02 at 101 Aa $ 1,106,020
2,000,000 Florida Department of Corrections, Certificates of
Participation, 6.000%, 3/01/14 3/04 at 102 A1 2,101,600
2,000,000 Florida Housing Finance Agency, Single Family
Mortgage, Alternative Minimum Tax,
5.875%, 1/01/27 1/04 at 100 AAA 1,984,480
5,500,000 Florida Housing Finance Agency, Alternative
Minimum Tax, 6.200%, 7/01/27 1/06 at 102 Aa 5,607,305
1,000,000 Florida Housing Finance Agency (Holly Cove
Apartments), Alternative Minimum Tax,
6.150%, 10/01/25 10/05 at 102 Aaa 1,014,940
1,750,000 Florida Housing Finance Agency, 6.400%, 6/01/24 6/02 at 103 AAA 1,817,568
6,180,000 Florida Housing Finance Agency, Home Ownership,
8.595%, 11/01/17 No Opt. Call AAA 6,952,376
3,260,000 Florida Housing Finance Agency, Single Family
Mortgage (GNMA), 7.100%, 1/01/17 3/97 at 103 AAA 3,408,493
335,000 Florida Housing Finance Agency, Home Ownership
(GNMA), Alternative Minimum Tax,
8.595%, 11/01/18 No Opt. Call AAA 356,989
Florida Board of Education General Obligation:
3,290,000 7.250%, 6/01/23 6/00 at 102 Aa 3,716,483
1,510,000 5.500%, 6/01/23 6/03 at 101 Aa 1,511,435
1,000,000 5.200%, 6/01/23 6/03 at 101 Aa 976,400
5,000,000 6.000%, 6/01/25 6/00 at 100 Aa 5,099,650
Florida Turnpike Authority:
1,250,000 9.500%, 7/01/00 No Opt. Call Aaa 1,518,813
1,000,000 5.000%, 7/01/15 7/03 at 101 Aaa 984,700
4,985,000 7.500%, 7/01/19 (Pre-refunded to 7/01/99) 7/99 at 102 Aaa 5,637,188
2,000,000 5.625%, 7/01/25 7/05 at 101 Aaa 2,033,300
Florida General Obligation, Jacksonville
Transportation:
3,900,000 7.000%, 7/01/13 7/97 at 102 Aa 4,144,257
1,510,000 5.300%, 7/01/18 7/03 at 101 Aa 1,499,204
1,000,000 Alachua County Health Facilities Authority (Shands
Hospital), 5.750%, 12/01/15 12/02 at 100 Aaa 1,017,920
2,150,000 Alachua County Library District, General
Obligation, 6.600%, 8/01/10 8/01 at 102 Aaa 2,368,935
1,500,000 Bradford County Health Facility Authority (Santa
Fe Healthcare), 6.050%, 11/15/16 11/98 at 102 BBB+ 1,501,755
Brevard County Educational Facilities Authority
(Florida Institute of Technology):
3,365,000 6.750%, 11/01/07 11/02 at 102 BBB 3,689,622
4,790,000 6.875%, 11/01/22 11/02 at 102 BBB 4,946,106
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,150,000 Brevard County Sales Tax, 5.250%, 12/01/13 12/03 at 102 Aaa $ 1,157,464
5,000,000 Broward County Airport System, Alternative
Minimum Tax, 7.625%, 10/01/13 10/98 at 102 Aaa 5,496,200
2,000,000 Broward County, Certificates of Participation,
5.500%, 6/01/13 6/04 at 102 Aaa 2,055,000
Cape Coral Health Facilities Authority (The Cape
Coral Medical Center):
1,500,000 7.800%, 11/15/18 11/99 at 102 Caa 1,230,000
3,085,000 7.500%, 11/15/21 11/03 at 102 Caa 2,529,700
3,490,000 Charlotte County Utility System, 6.875%, 10/01/21
(Pre-refunded to 10/01/01) 10/01 at 102 Aaa 4,005,962
10,000,000 Citrus County Pollution Control (Florida Power
Corporation - Crystal River Project),
6.625%, 1/01/27 1/02 at 102 A1 10,755,700
1,200,000 Cocoa Beach Utility System, 5.450%, 12/01/20 12/01 at 101 Aaa 1,203,024
Collier County Water-Sewer District:
3,910,000 6.500%, 7/01/21 (Pre-refunded to 7/01/99) 7/99 at 102 Aaa 4,294,822
2,190,000 6.500%, 7/01/21 7/99 at 102 Aaa 2,356,571
8,450,000 Dade County (Miami International Airport),
Alternative Minimum Tax, 6.750%, 10/01/06 10/98 at 102 Aa 9,110,368
Dade County Housing Finance Authority, Single
Family Mortgage:
5,755,000 6.950%, 12/15/12 12/01 at 102 Aaa 6,175,230
410,000 7.000%, 3/01/24 3/01 at 102 Aaa 435,035
3,420,000 Dade County Water and Sewer System,
5.500%, 10/01/18 10/05 at 102 Aaa 3,462,545
7,000,000 Dade County Health Facilities Authority (North
Shore Medical Center), 6.500%, 8/15/15 8/02 at 102 Aaa 7,614,040
5,000,000 Davie Water and Sewer System, 6.250%, 10/01/17 10/02 at 102 Aaa 5,373,500
2,205,000 Dunedin (Mease Health Care), 6.750%, 11/15/21
(Pre-refunded to 11/15/01) 11/01 at 102 Aaa 2,529,576
7,350,000 Fort Lauderdale General Obligation, 6.300%, 7/01/07 1/99 at 101 Aa 7,690,526
Greater Orlando Aviation Authority, Alternative
Minimum Tax:
8,540,000 6.500%, 10/01/12 10/02 at 102 Aaa 9,298,267
4,450,000 8.375%, 10/01/16 10/98 at 102 A1 4,978,438
5,500,000 5.500%, 10/01/18 10/03 at 102 Aaa 5,495,930
1,500,000 Hillsborough County Aviation Authority (Tampa
International Airport), 5.500%, 10/01/13 10/03 at 102 Aaa 1,532,235
Hillsborough County Industrial Development,
Authority Pollution Control (Tampa Electric
Company):
5,830,000 7.875%, 8/01/21 8/01 at 103 Aa2 6,874,619
9,800,000 8.000%, 5/01/22 5/02 at 103 Aa2 11,785,186
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 500,000 Hillsborough County Industrial Development
Authority (University Community Hospital),
5.800%, 8/15/24 8/04 at 102 Aaa $ 517,410
Hillsborough County, Capital Improvement (Museum
of Science and Industry):
575,000 6.400%, 1/01/12 1/00 at 102 A 609,132
1,000,000 6.450%, 1/01/22 1/00 at 102 A 1,057,420
4,750,000 Hollywood Water and Sewer System,
6.875%, 10/01/21 (Pre-refunded to 10/01/01) 10/01 at 102 Aaa 5,452,240
Jackson Electric Authority:
1,500,000 5.750%, 10/01/12 10/02 at 101 Aa1 1,551,480
2,000,000 5.500%, 10/01/14 10/02 at 101 Aa1 2,014,240
3,000,000 6.750%, 10/01/16 (Pre-refunded to 10/01/00) 10/00 at 101 1/2 Aaa 3,377,190
4,625,000 6.750%, 10/01/21 (Pre-refunded to 10/01/00) 10/00 at 101 1/2 Aaa 5,206,501
1,250,000 Jacksonville Electric Authority (St. John's River
Power Park System), 5.500%, 10/01/13 4/03 at 101 Aa1 1,276,061
5,000,000 Jacksonville Electric Authority, Special Obligation
5th Crossover Series, 5.375%, 10/01/10 10/04 at 101 Aa1 5,088,850
3,170,000 Jacksonville Excise Tax, Alternative Minimum Tax,
0.000%, 10/01/15 No Opt. Call Aaa 1,070,794
10,395,000 Jacksonville (University Medical Center),
6.600%, 2/01/21 2/02 at 102 AAA 11,255,186
2,750,000 Kissimmee Utility Authority (Electric System),
6.500%, 10/01/17 (Pre-refunded to 10/01/01) 10/01 at 102 Aaa 3,113,495
1,000,000 Lakeland Electric and Water, 5.750%, 10/01/19 10/99 at 100 Aa 1,006,430
Leesburg (Leesburg Regional Medical Center):
1,500,000 6.250%, 7/01/09 7/03 at 102 A- 1,575,615
2,500,000 7.500%, 7/01/21 7/02 at 102 N/R 2,962,600
1,500,000 Martin County Water and Wastewater System,
5.700%, 10/01/23 10/01 at 102 Aaa 1,528,545
1,350,000 Miami Parking System, 5.700%, 10/01/09 No Opt. Call A 1,420,376
2,000,000 Opa-Locka Capital Improvement, 6.125%, 1/01/24 1/04 at 102 Aaa 2,138,880
1,675,000 Orange County Health Facility Authority (Adventist
Health System/Sunbelt), 6.875%, 11/15/15 11/01 at 102 Aaa 1,860,439
250,000 Orange County Health Facility Authority (Orlando
Regional Healthcare System), 5.000%, 10/01/15 10/03 at 102 Aaa 239,830
725,000 Orange County Sales Tax, 5.375%, 1/01/24 1/03 at 102 A1 713,653
Orange County Tourist Development:
3,000,000 6.500%, 10/01/19 10/02 at 102 Aaa 3,302,520
7,490,000 6.000%, 10/01/21 10/02 at 100 Aaa 7,807,501
Orlando Utilities Commission:
5,975,000 6.500%, 10/01/20 (Pre-refunded to 10/01/01) 10/01 at 102 Aaa 6,764,776
1,000,000 5.000%, 10/01/20 10/04 at 101 Aa 960,820
1,000,000 5.250%, 10/01/23 10/03 at 102 Aa 979,170
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,500,000 Orlando and Orange County Expressway Authority,
5.950%, 7/01/23 7/01 at 102 A- $ 1,526,760
500,000 Palm Beach County General Obligation,
4.600%, 7/01/07 No Opt. Call Aa 487,570
Palm Beach County Airport Authority:
10,700,000 7.750%, 10/01/10 10/01 at 102 Aaa 12,607,703
2,500,000 6.375%, 10/01/14 10/02 at 102 Aaa 2,701,375
1,240,000 Pensacola Airport System, Alternative Minimum Tax,
5.250%, 10/01/18 10/03 at 102 Aaa 1,216,490
2,025,000 Plantation Electric System, 5.375%, 8/15/12 8/03 at 102 Aaa 2,057,582
16,000,000 Reedy Creek Improvement District, Utilities System,
6.500%, 10/01/16 (Pre-refunded to 10/01/01) 10/01 at 101 Aaa 17,988,800
2,500,000 St. Lucie County, Solid Waste Disposal (Florida
Power and Light Company), Alternative Minimum
Tax, 7.150%, 2/01/23 2/01 at 102 A2 2,726,875
5,000,000 St. Petersburg Health Facilities Authority (St. Joseph's
Hospital Inc.), 7.000%, 12/01/15 12/01 at 102 Aaa 5,676,700
5,500,000 St. Petersburg Public Improvement, 6.375%, 2/01/12 2/02 at 102 Aaa 5,957,270
2,300,000 Sarasota County Utility System, 6.500%, 10/01/22 10/04 at 102 Aaa 2,551,893
2,000,000 Seminole County School Board, Certificates of
Participation, 6.125%, 7/01/19 7/04 at 102 Aaa 2,140,760
1,000,000 Stuart Public Utilities, 6.800%, 10/01/24 10/03 at 100 Aaa 1,125,730
3,000,000 Tampa (The Florida Aquarium Project),
7.750%, 5/01/27 5/02 at 102 N/R 3,263,670
1,000,000 Venice Utilities System, 5.500%, 7/01/14 7/03 at 102 Aaa 1,009,950
1,000,000 Puerto Rico Highway and Transportation Authority,
5.250%, 7/01/20 7/03 at 101 1/2 A 962,020
$299,255,000 Total Investments - (cost $299,170,929) - 98.2% 321,287,779
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.4%
$ 1,400,000 Atlantic Beach Improvement & Refunding Bonds,
============
Series 1994B (Fleet Landing Project), Variable Rate
Demand Bonds, 6.100%, 10/01/24t VMIG-1 1,400,000
Other Assets Less Liabilities - 1.4% 4,431,561
Net Assets - 100% $327,119,340
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 53 $200,250,663 62%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 20 72,486,074 23
PORTFOLIO OF A+ A1 4 18,549,391 6
INVESTMENTS A, A- A, A2, A3 7 9,878,198 3
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 3 10,137,483 3
TEMPORARY Other Other 2 3,759,700 1
INVESTMENTS): Non-rated Non-rated 2 6,226,270 2
TOTAL 91 $321,287,779 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN INSURED FLORIDA PREMIUM INCOME MUNICIPAL FUND (NFL)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Florida Department of General Services, Bond
Finance Division:
$ 4,500,000 5.750%, 7/01/11 7/05 at 101 Aaa $ 4,722,525
6,350,000 4.750%, 7/01/12 7/04 at 101 Aaa 6,080,062
3,500,000 4.900%, 7/01/13 7/04 at 101 Aaa 3,405,745
1,590,000 Florida Housing Finance Agency (Williamsburg
Village Apartments), Alternative Minimum Tax,
6.100%, 12/01/20 12/05 at 102 Aaa 1,612,785
Florida Municipal Power Agency:
4,000,000 6.500%, 10/01/20 (Pre-refunded to 10/01/02) 10/02 at 102 Aaa 4,570,880
3,000,000 6.250%, 10/01/21 (Pre-refunded to 10/01/02) 10/02 at 102 Aaa 3,384,600
6,625,000 6.000%, 10/01/27 (Pre-refunded to 10/01/02) 10/02 at 102 Aaa 7,378,130
4,250,000 Florida Municipal Power Agency, St. Lucie Project,
5.250%, 10/01/21 10/02 at 102 Aaa 4,193,518
1,500,000 Florida Municipal Power Agency, Tri-City Project,
5.500%, 10/01/19 10/03 at 100 Aaa 1,505,970
Florida Turnpike Authority:
2,000,000 7.000%, 7/01/04 7/01 at 102 Aaa 2,269,060
12,185,000 5.500%, 7/01/13 7/05 at 101 Aaa 12,522,646
3,995,000 6.350%, 7/01/22 (Pre-refunded to 7/01/02) 7/02 at 101 Aaa 4,485,746
5,415,000 Alachua County Health Facilities Authority (Shands
Hospital), 5.750%, 12/01/15 12/02 at 100 Aaa 5,512,037
3,000,000 Broward County Airport System, 5.250%, 10/01/09 10/03 at 102 Aaa 3,040,230
3,750,000 Broward County Health Facilities Authority (Holy
Cross Hospital), 5.850%, 6/01/12 6/03 at 102 Aaa 3,935,550
Broward County School District, General Obligation:
3,400,000 7.750%, 2/15/07 (Pre-refunded to 2/15/98) 2/98 at 102 Aaa 3,730,140
1,000,000 7.125%, 2/15/08 (Pre-refunded to 2/15/99) 2/99 at 102 Aaa 1,109,880
2,120,000 Charlotte County Utility System, 5.500%, 10/01/17 10/03 at 102 Aaa 2,142,938
1,000,000 Clay County Utilities System, 5.000%, 11/01/17 11/03 at 102 Aaa 978,470
1,000,000 Cocoa Water and Sewer System, 5.000%, 10/01/23 10/03 at 100 Aaa 954,470
7,000,000 Dade County General Obligation, 12.000%, 10/01/97 No Opt. Call Aaa 7,956,620
3,000,000 Dade County Aviation, 5.500%, 10/01/11 10/03 at 102 Aaa 3,095,490
Dade County (Jackson Memorial Hospital):
250,000 5.625%, 6/01/18 6/03 at 102 Aaa 254,008
1,900,000 5.250%, 6/01/23 6/03 at 102 Aaa 1,868,726
Dade County School District General Obligation:
1,000,000 7.200%, 7/01/02 (Pre-refunded to 7/01/99) 7/99 at 102 Aaa 1,121,110
5,000,000 5.000%, 8/01/12 8/03 at 101 Aaa 4,925,000
3,500,000 5.000%, 8/01/14 8/03 at 101 Aaa 3,423,175
1,000,000 Dade County Seaport, 6.200%, 10/01/05 No Opt. Call Aaa 1,116,050
Dade County Water and Sewer System:
500,000 6.250%, 10/01/10 No Opt. Call Aaa 562,680
3,730,000 5.750%, 10/01/22 10/05 at 102 Aaa 3,850,367
5,600,000 Dade County Health Facilities Authority (Baptist
Hospital of Miami), 5.250%, 5/15/21 5/03 at 101 Aaa 5,510,904
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,000,000 Daytona Beach Water and Sewer System,
5.500%, 11/15/17 11/02 at 100 Aaa $ 3,019,410
4,000,000 Dunedin (Mease Health Care), 5.375%, 11/15/21 11/03 at 101 Aaa 3,972,080
7,250,000 Duval County Housing Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
6.700%, 10/01/26 10/04 at 102 Aaa 7,594,375
3,005,000 Escambia County Housing Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
6.900%, 4/01/20 10/02 at 102 Aaa 3,161,530
6,000,000 Escambia County Sales Tax, 5.800%, 1/01/15 1/03 at 102 Aaa 6,249,660
Greater Orlando Aviation Authority, Alternative
Minimum Tax:
2,950,000 7.400%, 10/01/06 10/96 at 102 Aaa 3,083,311
3,975,000 5.500%, 10/01/18 10/03 at 102 Aaa 3,972,059
2,000,000 6.375%, 10/01/21 10/02 at 102 Aaa 2,150,420
1,400,000 Hernando County Capital Improvement,
5.750%, 2/01/14 2/03 at 102 Aaa 1,455,650
14,000,000 Hillsborough County Aviation Authority (Tampa
International Airport), 5.600%, 10/01/19 10/03 at 102 Aaa 14,182,420
1,000,000 Hillsborough County Aviation Authority (Tampa
International Airport), Alternative Minimum Tax,
5.375%, 10/01/23 10/03 at 102 Aaa 992,780
2,500,000 Hillsborough County Industrial Development
Authority (University Community Hospital),
6.500%, 8/15/19 No Opt. Call Aaa 2,979,225
2,000,000 Hillsborough County Utility System, 6.625%, 8/01/11 8/02 at 102 Aaa 2,196,780
10,495,000 Hollywood Water and Sewer System, 5.600%, 10/01/23 10/03 at 102 Aaa 10,631,750
8,000,000 Indian River County, Water and Sewer System,
5.250%, 9/01/24 9/08 at 100 Aaa 7,923,280
2,875,000 Jacksonville Beach Utility System, 5.500%, 10/01/14 10/02 at 102 Aaa 2,909,586
4,800,000 Jacksonville Excise Tax, Alternative Minimum Tax,
5.750%, 10/01/20 10/03 at 102 Aaa 4,912,848
3,605,000 Jacksonville (Windermere Manor Apartments-GNMA),
5.875%, 3/20/28 9/03 at 102 AAA 3,629,838
3,350,000 Jacksonville Port Authority Airport, Alternative
Minimum Tax, 5.250%, 10/01/17 10/03 at 102 Aaa 3,287,958
1,025,000 Jacksonville Sales Tax (River City Renaissance Project),
5.500%, 10/01/10 10/05 at 101 Aaa 1,059,819
2,700,000 Lee County, Capital and Transportation Facilities,
5.600%, 10/01/21 10/03 at 102 Aaa 2,735,181
10,235,000 Okaloosa County School Board, Sales Tax,
6.000%, 9/01/99 No Opt. Call Aaa 10,917,982
1,000,000 Opa-Locka Capital Improvement, 7.000%, 1/01/14 1/04 at 102 Aaa 1,155,950
6,000,000 Orange County Tourist Development,
6.250%, 10/01/13 10/02 at 102 Aaa 6,440,220
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,000,000 Orange County Water Utilities System,
6.250%, 10/01/17 4/02 at 102 Aaa $ 2,142,520
6,000,000 Orlando Utilities Commission, 5.500%, 10/01/20 10/99 at 100 Aaa 6,006,480
5,800,000 Orlando and Orange County Expressway Authority,
5.500%, 7/01/18 7/03 at 102 Aaa 5,862,002
Palm Bay Utility System:
1,000,000 6.200%, 10/01/17 (Pre-refunded to 10/01/02) 10/02 at 102 Aaa 1,125,300
3,295,000 6.200%, 10/01/22 (Pre-refunded to 10/01/02) 10/02 at 102 Aaa 3,707,864
5,550,000 Palm Beach County Airport Authority,
7.625%, 10/01/04 10/01 at 102 Aaa 6,485,841
Palm Beach County, Administrative Complex:
1,265,000 5.200%, 6/01/06 No Opt. Call Aaa 1,303,342
6,500,000 5.250%, 6/01/11 No Opt. Call Aaa 6,634,355
Palm Beach County, Criminal Justice Facilities:
3,000,000 5.375%, 6/01/08 No Opt. Call Aaa 3,124,200
4,000,000 5.375%, 6/01/10 No Opt. Call Aaa 4,154,760
2,335,000 Pasco County Gas Tax, 5.750%, 8/01/13 8/02 at 102 Aaa 2,433,607
6,000,000 Polk County Industrial Development Authority
(Winter Haven Hospital), 6.250%, 9/01/15 9/02 at 103 Aaa 6,433,500
3,000,000 Port Saint Lucie Utility System, 6.000%, 9/01/24 9/04 at 102 Aaa 3,155,940
10,000,000 Reedy Creek Improvement District, 5.000%, 10/01/19 10/04 at 101 Aaa 9,708,300
5,000,000 Reedy Creek Improvement District, Alternative
Minimum Tax, 8.500%, 10/01/09 10/97 at 102 Aaa 5,444,150
St. Lucie County Utility System:
6,000,000 5.500%, 10/01/15 10/03 at 102 Aaa 6,145,320
2,000,000 5.500%, 10/01/17 10/03 at 102 Aaa 2,101,540
1,200,000 5.500%, 10/01/21 10/03 at 102 Aaa 1,259,436
3,000,000 Sebring Water and Wastewater System, 5.500%, 1/01/23 1/03 at 102 Aaa 3,020,100
2,500,000 Seminole County, Solid Waste Disposal System,
5.250%, 10/01/20 10/03 at 102 Aaa 2,477,550
11,285,000 Seminole County, Water and Sewer System,
6.000%, 10/01/19 No Opt. Call Aaa 12,732,300
2,500,000 Tampa, Allegany Health System (St. Joseph's Hospital),
5.125%, 12/01/23 12/03 at 102 Aaa 2,406,550
1,100,000 Volusia County Tourist Development, 5.250%, 12/01/13 12/02 at 101 Aaa 1,105,972
1,940,000 West Palm Beach Guaranteed Entitlement,
5.375%, 10/01/14 10/03 at 101 Aaa 1,956,005
$310,095,000 Total Investments - (cost $307,580,784) - 98.7% 322,760,558
============
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.1%
$ 200,000 Atlantic Beach Improvement & Refunding Bonds,
============
Series 1994B (Fleet Landing Project), Variable Rate
Demand Bonds, 6.100%, 10/01/24t VMIG-1 $ 200,000
Other Assets Less Liabilities - 1.2% 3,960,269
Net Assets - 100% $326,920,827
============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 79 $322,760,558 100%
RATINGS**
PORTFOLIO OF
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
TOTAL 79 $322,760,558 100%
<FN>
All of the bonds in the portfolio, excluding temporary investments in
short-term municipal securities, are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by
an escrow or trust containing sufficient U.S. Government or U.S. Government
agency securities to ensure the timely payment of principal and interest.
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
(Unaudited)
<CAPTION>
NQF NUF NFL
<S> <C> <C> <C>
ASSETS
Investments in municipal securities, at market value
(note 1) $358,168,069 $321,287,779 $322,760,558
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 1,200,000 1,400,000 200,000
Cash 733,424 293,787 12,085
Receivables:
Interest 6,831,479 5,545,365 5,190,970
Investments sold 76,692 -- --
Prepaid Preferred shares auction fees (note 1) -- -- --
Other assets 19,333 24,115 21,995
------------ ------------ ------------
Total assets 367,028,997 328,551,046 328,185,608
------------ ------------ ------------
LIABILITIES
Accrued expenses:
Management fees (note 6) 196,487 176,437 175,891
Other 154,322 117,422 158,952
Preferred share dividends payable 27,872 58,329 1,026
Common share dividends payable 1,379,479 1,079,518 928,912
Capital gains distribution payable 6,595 -- --
------------ ------------ ------------
Total liabilities 1,764,755 1,431,706 1,264,781
------------ ------------ ------------
Net assets (note 7) $365,264,242 $327,119,340 $326,920,827
============ ============ ============
Preferred shares, at liquidation value $110,000,000 $105,000,000 $111,000,000
============ ============ ============
Preferred shares outstanding 4,400 4,200 4,440
============ ============ ============
Common shares outstanding 16,061,110 14,019,714 14,290,929
============ ============ ============
Net asset value per Common share outstanding
(net assets less Preferred shares at liquidation
value, divided by Common shares outstanding) $ 15.89 $ 15.84 $ 15.11
============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended December 31, 1995
(Unaudited)
<CAPTION>
NQF NUF NFL
<S> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $11,232,867 $ 9,581,388 $ 8,703,207
----------- ----------- -----------
Expenses:
Management fees (note 6) 1,153,728 1,034,361 1,014,614
Preferred shares--auction fees 147,860 141,256 139,890
Preferred shares--dividend disbursing agent fees 11,096 17,645 15,123
Shareholders' servicing agent fees and expenses 22,908 19,683 25,185
Custodian's fees and expenses 24,741 33,461 31,238
Trustees' fees and expenses (note 6) 1,564 271 972
Professional fees 8,342 14,703 8,326
Shareholders' reports--printing and mailing expenses 33,050 37,536 17,599
Stock exchange listing fees 17,835 17,420 14,068
Investor relations expense 5,506 4,116 5,849
Other expenses 14,681 16,712 15,791
----------- ----------- -----------
Total expenses 1,441,311 1,337,164 1,288,655
----------- ----------- -----------
Net investment income 9,791,556 8,244,224 7,414,552
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (121,372) 78,672 (77,431)
Net change in unrealized appreciation or depreciation
of investments 7,668,282 7,958,447 17,516,014
----------- ----------- -----------
Net gain from investments 7,546,910 8,037,119 17,438,583
----------- ----------- -----------
Net increase in net assets from operations $17,338,466 $16,281,343 $24,853,135
=========== =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NQF NUF
6 months ended Year ended 6 months ended Year ended
12/31/95 6/30/95 12/31/95 6/30/95
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 9,791,556 $ 19,744,909 $ 8,244,224 $ 15,300,502
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (121,372) 412,877 78,672 (153,787)
Net change in unrealized appreciation or depreciation
of investments 7,668,282 5,951,700 7,958,447 10,128,544
------------ ------------ ------------ ------------
Net increase in net assets from operations 17,338,466 26,109,486 16,281,343 25,275,259
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (7,939,604) (15,983,288) (6,504,801) (11,999,490)
Preferred shareholders (2,171,257) (4,446,462) (2,008,387) (3,736,950)
From accumulated net realized gains from investment
transactions:
Common shareholders (61,032) (275,615) -- --
Preferred shareholders (17,138) (67,870) -- --
------------ ------------ ------------ ------------
Decrease in net assets from distributions to shareholders (10,189,031) (20,773,235) (8,513,188) (15,736,440)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from shares issued in acquisition of
NFO (note 1) -- -- -- 49,625,430
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions
from net investment income and from net
realized gains from investment transactions 580,679 305,589 -- --
------------ ------------ ------------ ------------
Net increase in net assets derived from capital
share transactions 580,679 305,589 -- 49,625,430
------------ ------------ ------------ ------------
Net increase in net assets 7,730,114 5,641,840 7,768,155 59,164,249
Net assets at beginning of period 357,534,128 351,892,288 319,351,185 260,186,936
------------ ------------ ------------ ------------
Net assets at end of period $365,264,242 $357,534,128 $327,119,340 $319,351,185
============ ============ ============ ============
Balance of undistributed net investment income at
end of period $ 449,357 $ 768,662 $ 400,311 $ 669,624
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NFL
6 months ended Year ended
12/31/95 6/30/95
<S> <C> <C>
OPERATIONS
Net investment income $ 7,414,552 $ 12,014,152
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (77,431) (294,534)
Net change in unrealized appreciation or depreciation
of investments 17,516,014 15,762,710
------------ ------------
Net increase in net assets from operations 24,853,135 27,482,328
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (5,573,482) (8,892,671)
Preferred shareholders (1,875,032) (3,254,683)
From accumulated net realized gains from investment
transactions:
Common shareholders -- --
Preferred shareholders -- --
------------ ------------
Decrease in net assets from distributions to shareholders (7,448,514) (12,147,354)
------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from shares issued in acquisition of
NFP (note 1) -- 104,559,215
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions
from net investment income and from net
realized gains from investment transactions -- --
------------ ------------
Net increase in net assets derived from capital
share transactions -- 104,559,215
------------ ------------
Net increase in net assets 17,404,621 119,894,189
Net assets at beginning of period 309,516,206 189,622,017
------------ ------------
Net assets at end of period $326,920,827 $309,516,206
============ ============
Balance of undistributed net investment income at
end of period $ 630,194 $ 664,152
============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At December 31, 1995, the state Funds (the "Funds") covered in this report and
their corresponding New York Stock Exchange symbols are Nuveen Florida
Investment Quality Municipal Fund (NQF), Nuveen Florida Quality Income
Municipal Fund (NUF) and Nuveen Insured Florida Premium Income Municipal Fund
(NFL).
The Funds are registered under the Investment Company Act of 1940 as
closed-end, diversified management investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
On January 10, 1995, NUF acquired all of the net assets of Nuveen Florida
Premium Income Municipal Fund (NFO) pursuant to a plan of reorganization
approved by the shareholders of the Funds on December 22, 1994. The
acquisition was accomplished by a tax-free exchange of 2,097,760 shares of NUF
for the 2,650,533 shares of NFO outstanding on January 10, 1995. NFO's net
assets at that date of $49,625,430 included $4,885,890 of unrealized
depreciation and $20,000,000 of preferred shares at liquidation value which
were combined with that of NUF. The combined net assets of NUF immediately
after the acquisition were $302,992,171.
On January 9, 1995, NFL acquired all of the net assets of Nuveen Insured
Florida Premium Income Municipal Fund 2 (NFP) pursuant to a plan of
reorganization approved by the shareholders of the Funds on December 22, 1994.
The acquisition was accomplished by a tax-free exchange of 5,155,220 shares of
NFL for the 5,508,850 shares of NFP outstanding on January 9, 1995. NFP's net
assets at that date of $104,559,215 included $10,836,679 of unrealized
depreciation and $41,000,000 of preferred shares at liquidation value which
were combined with that of NFL. The combined net assets of NFL immediately
after the acquisition were $287,194,313.
Securities Valuation
Portfolio securities for which market quotations are readily available are
valued at the mean between the quoted bid and asked prices or the yield
equivalent. Portfolio securities for which market quotations are not readily
available are valued at fair value by consistent application of methods
determined in good faith by the Trustees. Temporary investments in securities
that have variable rate and demand features qualifying them as short-term
securities are traded and valued at amortized cost.
<PAGE>
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery
basis may be settled a month or more after the transaction date. The
securities so purchased are subject to market fluctuation during this period.
The Funds have instructed the custodian to segregate assets in a separate
account with a current value at least equal to the amount of their purchase
commitments. At December 31, 1995, there were no purchase commitments in any
of the Funds.
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt
securities when required for federal income tax purposes.
Income Taxes
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies by distributing all of their net
investment income, in addition to any significant amounts of net realized
gains from investments, to shareholders. The Funds currently consider
significant net realized gains as amounts in excess of $.01 per Common share.
Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal
income taxes, to retain such tax exempt status when distributed to
shareholders of the Funds. Further, each Fund intends to satisfy conditions so
that the Fund's shares will also be exempt from the Florida intangible
personal property tax.
Dividends and Distributions to Shareholders
Net investment income is declared as a dividend monthly and payment is made or
reinvestment is credited to shareholder accounts after month-end. Net realized
gains from investment transactions are distributed to shareholders not less
frequently than annually only to the extent they exceed available capital loss
carryovers.
Distributions to shareholders of net investment income and net realized gains
from investment transactions are recorded on the ex-dividend date. The amount
and timing of such distributions are determined in accordance with federal
income tax regulations, which may differ from generally accepted accounting
principles. Accordingly, temporary over-distributions as a result of these
differences may result and will be classified as either distributions in
excess of net investment income or distributions in excess of net realized
capital gains, if applicable.
<PAGE>
<TABLE>
Preferred Shares
The following Funds have issued and outstanding $25,000 stated value Preferred
shares. Each Fund's Preferred shares are issued in more than one Series. The
dividend rate on each Series may change every seven days, as set by the
Auction Agent, except for NUF Series Th which has lengthened its dividend
period to three years. The number of shares outstanding, by Series and in
total, at December 31 1995, for each Fund is as follows:
<CAPTION>
NQF NUF NFL
<S> <C> <C> <C>
Number of shares:
Series M -- 1,700 --
Series T 2,200 -- --
Series W -- -- 1,640
Series Th -- 1,700* 2,800
Series F 2,200 800 --
----- ----- -----
Total 4,400 4,200 4,440
===== ===== =====
<FN>
*Three year period
Preferred share auction fees paid by NUF in connection with lengthening the
dividend period on Series Th has been capitalized and is being amortized over
the respective dividend period.
</TABLE>
Insurance
NFL invests in municipal securities which are covered by insurance
guaranteeing the timely payment of principal and interest thereon or backed by
an escrow or trust account containing sufficient U.S. Government or U.S.
Government agency securities to ensure the timely payment of principal and
interest. Each insured municipal security is covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance. Such insurance
does not guarantee the market value of the municipal securities or the value
of the Fund's 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
Fund's shares include value, if any, attributable to the Portfolio Insurance.
Each policy of the Portfolio Insurance does, however, give the Fund the right
to obtain permanent insurance with respect to the municipal security covered
by the Portfolio Insurance policy at the time of its sale.
<PAGE>
Derivative Financial Instruments
In October 1994, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 119 Disclosure about
Derivative Financial Instruments and Fair Value of Financial Instruments which
prescribes disclosure requirements for transactions in certain derivative
financial instruments including futures, forward, swap, and option contracts,
and other financial instruments with similar characteristics. Although the
Funds are authorized to invest in such financial instruments, and may do so in
the future, they did not make any such investments during the six months ended
December 31, 1995.
<TABLE>
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
<CAPTION>
NQF NUF
6 months ended Year ended 6 months ended Year ended
12/31/95 6/30/95 12/31/95 6/30/95
<S> <C> <C> <C> <C>
Common shares:
Shares issued in acquisition of NFO (note 1) -- -- -- 2,097,760
Shares issued to shareholders due to reinvestment
of distributions from net investment income and
from net realized gains from investment
transactions 36,963 19,878 -- --
------ ------ ------ ---------
Net increase 36,963 19,878 -- 2,097,760
====== ====== ====== =========
Preferred shares acquired from NFO (note 1) -- -- -- 800
====== ====== ====== =========
<CAPTION>
NFL
6 months ended Year ended
12/31/95 6/30/95
<S> <C> <C>
Common shares:
Shares issued in acquisition of NFP (note 1) -- 5,155,220
Shares issued to shareholders due to reinvestment
of distributions from net investment income and
from net realized gains from investment
transactions -- --
------ ---------
Net increase -- 5,155,220
====== =========
Preferred shares acquired from NFP (note 1) -- 1,640
====== =========
</TABLE>
<PAGE>
<TABLE>
3. SECURITIES TRANSACTIONS
Purchase and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the six months ended
December 31, 1995, were as follows:
<CAPTION>
NQF NUF NFL
<S> <C> <C> <C>
PURCHASES
Investments in municipal securities $35,426,045 $31,039,913 $55,764,611
Temporary municipal investments 65,300,000 43,796,000 32,300,000
SALES AND MATURITIES
Investments in municipal securities 35,335,635 25,922,565 50,245,830
Temporary municipal investments 65,545,000 49,296,000 37,500,000
=========== =========== ===========
At December 31, 1995, the identified cost of investments owned for federal
income tax purposes was the same as the cost for financial reporting purposes
for each Fund.
At June 30, 1995, the Funds' last fiscal year end, the following Funds had
unused capital loss carryovers available for federal income tax purposes to be
applied against future capital gains, if any. If not applied the carryovers
will expire as follows:
<CAPTION>
NUF* NFLt
<S> <C> <C>
Expiration year:
2001 $ -- $ 52,596
2002 2,053,171 1,801,048
2003 95,170 555,689
---------- ----------
Total $2,148,341 $2,409,333
========== ==========
<FN>
* Due to the acquisition of NFO by NUF (note 1), NFO had net realized losses
from investment transactions of $1,996,352 which were carried forward by NUF,
as permitted under applicable tax regulations.
t Due to the acquisition of NFP by NFL (note 1), NFP had net realized losses
from investment transactions of $1,801,048 which were carried forward by NFL,
as permitted under applicable tax regulations.
</TABLE>
<PAGE>
<TABLE>
4. Distributions to COMMON Shareholders
On January 2, 1996, the Funds declared Common share dividend distributions
from their ordinary income which were paid February 1, 1996, to shareholders
of record on on January 15, 1996, as follows:
<CAPTION>
NQF NUF NFL
<S> <C> <C> <C>
Dividend per share $.0825 $.0770 $.0650
====== ====== ======
5. Unrealized Appreciation (Depreciation)
Gross unrealized appreciation and gross unrealized depreciation of investments
at December 31, 1995, were as follows:
<CAPTION>
NQF NUF NFL
<S> <C> <C> <C>
Gross unrealized:
Appreciation $31,749,416 $22,997,688 $15,179,774
Depreciation (475,019) (880,838) --
----------- ----------- -----------
Net unrealized appreciation $31,274,397 $22,116,850 $15,179,774
=========== =========== ===========
6. MANAGEMENT FEE and Other Transactions with Affiliates
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), each Fund pays to the Adviser an annual management fee,
payable monthly, at the rates set forth below, which are based upon the
average daily net asset value of each Fund:
<CAPTION>
Average daily net asset value Management fee
<S> <C>
For the first $125,000,000 .65 of 1%
For the next $125,000,000 .6375 of 1
For the next $250,000,000 .625 of 1
For the next $500,000,000 .6125 of 1
For the next $1,000,000,000 .6 of 1
For net assets over $2,000,000,000 .5875 of 1
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those Trustees who are affiliated with the Adviser or
to their officers, all of whom receive remuneration for their services to the
Funds from the Adviser.
</TABLE>
<PAGE>
<TABLE>
7. Composition of Net Assets
At December 31, 1995, net assets consisted of:
<CAPTION>
NQF NUF NFL
<S> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $110,000,000 $105,000,000 $111,000,000
Common shares, $.01 par value per share 160,611 140,197 142,909
Paid-in surplus 223,482,513 201,754,433 202,669,135
Balance of undistributed net investment income 449,357 400,311 630,194
Accumulated net realized gain (loss) from
investment transactions (102,636) (2,292,451) (2,701,185)
Net unrealized appreciation or depreciation
of investments 31,274,397 22,116,850 15,179,774
------------ ------------ ------------
Net assets $365,264,242 $327,119,340 $326,920,827
============ ============ ============
Authorized shares:
Common Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited
============ ============ ============
</TABLE>
<PAGE>
<TABLE>
8. Investment Composition
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At December 31, 1995, the revenue sources by
municipal purpose for these investments, expressed as a percent of total
investments, were as follows:
<CAPTION>
NQF NUF NFL
<S> <C> <C> <C>
Revenue Bonds:
Transportation 5% 19% 19%
Housing Facilities 16 9 5
Water / Sewer Facilities 7 5 16
Health Care Facilities 14 11 10
Electric Utilities 6 3 10
Pollution Control Facilities 3 10 --
Lease Rental Facilities 4 3 --
Educational Facilities -- 3 --
Other 9 9 22
General Obligation Bonds 9 9 5
Escrowed Bonds 27 19 13
---- ---- ----
100% 100% 100%
==== ==== ====
Certain long-term and intermediate-term investments owned by the Funds are
covered by insurance issued by several private insurers or are backed by an
escrow or trust containing U.S. Government or U.S. Government agency
securities, either of which ensure the timely payment of principal and
interest in the event of default (59% for NQF, 59% for NUF and 100% for NFL).
Such insurance or escrow, however, does not guarantee the market value of the
municipal securities or the value of any of the Funds' shares, as more fully
discussed in Note 1.
All of the temporary investments in short-term municipal securities have
credit enhancements (letters of credit, guarantees or insurance) issued by
third party domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<CAPTION>
selected data for a common share outstanding throughout each period is as
follows:
Operating performance Dividends from net investment income
Net
realized &
unrealized
Net asset Net gain (loss)
value invest- from To To
beginning ment invest- Common Preferred
of period income ments** shareholders shareholderst
NQF
<S> <C> <C> <C> <C> <C>
Six months ended
12/31/95 $15.450 $ .610 $ .465 $ (.495) $(.135)
Year ended 6/30,
1995 15.110 1.233 .404 (.998) (.278)
1994 16.030 1.223 (.885) (.998) (.239)
1993 14.990 1.258 1.043 (1.021) (.223)
8 mos. ended
6/30/92 14.490 .851 .465 (.660) (.156)
2/21/91 to
10/31/91 14.050 .671 .562 (.495) (.122)
<CAPTION>
NUF
<S> <C> <C> <C> <C> <C>
Six months ended
12/31/95 15.290 .588 .569 (.464) (.143)
Year ended 6/30,
1995 14.690 1.193 .634 (.937) (.290)
1994 15.780 1.186 (1.075) (.958) (.243)
1993 14.570 1.205 1.217 (.972) (.205)
10/17/91 to
6/30/92 14.050 .609 .639 (.456) (.085)
<PAGE>
<CAPTION>
Distributions from capital gains
Organiza- Per
tion and Common
offering costs share
and Preferred market
To To share Net asset value
Common Preferred underwriting value end end of
shareholders shareholderst discounts of period period
NQF
<S> <C> <C> <C> <C> <C>
Six months ended
12/31/95 $(.004) $(.001) $ -- $15.890 $15.875
Year ended 6/30,
1995 (.017) (.004) -- 15.450 15.375
1994 (.017) (.004) -- 15.110 15.125
1993 (.014) (.003) -- 16.030 16.625
8 mos. ended
6/30/92 -- -- -- 14.990 16.000
2/21/91 to
10/31/91 -- -- (.176) 14.490 15.500
<CAPTION>
NUF
<S> <C> <C> <C> <C> <C>
Six months ended
12/31/95 -- -- -- 15.840 15.000
Year ended 6/30,
1995 -- -- -- 15.290 14.750
1994 -- -- -- 14.690 14.000
1993 (.029) (.006) -- 15.780 15.625
10/17/91 to
6/30/92 -- -- (.187) 14.570 14.625
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
valuett valuett thousands) net assets@ net assets@ rate
NQF
<S> <C> <C> <C> <C> <C> <C>
Six months ended
12/31/95 6.58% 6.19% $365,264 .79%* 5.40%* 10%
Year ended 6/30,
1995 8.98 9.43 357,534 .81 5.64 3
1994 (3.16) .45 351,892 .81 5.35 4
1993 10.72 14.37 364,973 .80 5.63 13
8 mos. ended
6/30/92 7.71 8.22 346,612 .77* 5.92* 3
2/21/91 to
10/31/91 6.70 6.79 337,834 .76* 5.47* --
<CAPTION>
NUF
<S> <C> <C> <C> <C> <C> <C>
Six months ended
12/31/95 4.90 6.74 327,119 .82* 5.08* 8
Year ended 6/30,
1995 12.74 10.97 319,351 .86 5.38 8
1994 (4.63) (1.02) 260,187 .84 5.21 5
1993 14.07 15.73 272,557 .86 5.41 14
10/17/91 to
6/30/92 .56 7.09 256,723 .81* 5.00* --
<FN>
See notes on page 42.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<CAPTION>
selected data for a common share outstanding throughout each period is as follows:
Operating performance Dividends from net investment income
Net
realized &
unrealized
Net asset Net gain (loss)
value invest- from To To
beginning ment invest- Common Preferred
of period income ments** shareholders shareholderst
NFL
<S> <C> <C> <C> <C> <C>
Six months ended
12/31/95 $13.890 $ .519 $ 1.222 $(.390) $(.131)
Year ended 6/30,
1995 13.090 1.044 .829 (.790) (.283)
1994 14.540 1.028 (1.487) (.810) (.181)
12/17/92 to
6/30/93 14.050 .340 .640 (.260) (.041)
<PAGE>
<CAPTION>
Distributions from capital gains
Organiza- Per
tion and Common
offering costs share
and Preferred market
To To share Net asset value
Common Preferred underwriting value end end of
shareholders shareholderst discounts of period period
NFL
<S> <C> <C> <C> <C> <C>
Six months ended
12/31/95 $ -- $ -- $ -- $15.110 $13.000
Year ended 6/30,
1995 -- -- -- 13.890 12.750
1994 -- -- -- 13.090 12.875
12/17/92 to
6/30/93 -- -- (.189) 14.540 14.750
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
valuett valuett thousands) net assets@ net assets@ rate
NFL
<S> <C> <C> <C> <C> <C> <C>
Six months ended
12/31/95 5.06% 11.77% $326,921 .81%* 4.66%* 16%
Year ended 6/30,
1995 5.59 12.75 309,516 .88 4.95 5
1994 (7.45) (4.75) 189,622 .85 4.67 17
12/17/92 to
6/30/93 .07 5.39 202,579 .90* 3.87* 21
<FN>
* Annualized.
** Net of taxes, if applicable.
t The amounts shown are based on Common share equivalents.
tt 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.
@ Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
</TABLE>
<PAGE>
Your investment partner
Photographic image of John Nuveen, Sr., founder of Nuveen.
For nearly 100 years, Nuveen has earned its reputation as a tax-free income
specialist by focusing on municipal bonds.
Since 1898, John Nuveen & Co. Incorporated has worked to bring together the
various participants in the municipal bond industry and build strong
partnerships that benefit all concerned. Investors, financial advisers,
municipal officials, investment bankers--Nuveen believes that forging
relationships with these groups based on trust and value is the key to
successful investing.
As the oldest and largest municipal bond specialist in the United States,
Nuveen's investment bankers work with issuers to understand and meet their
needs in structuring and selling their bond issues.
Nuveen also works closely with financial advisers around the country,
including brokerage firms, banks, insurance companies, and independent
financial planners, to bring the benefits of tax-free investing to you. These
advisers are experts at identifying your needs and recommending the best
solutions for your situation. Together we make a powerful team, helping you
create a successful investment plan that meets your needs today and in the
future.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
ETF1-FEB 96
