Nuveen Exchange-Traded Funds
Providing tax-free income
to help you live your dreams
FLORIDA INVESTMENT QUALITY (NQF)
FLORIDA QUALITY INCOME (NUF)
INSURED FLORIDA PREMIUM INCOME (NFL)
SEMIANNUAL REPORT/DECEMBER 31, 1996
Photographic image of couple walking on beach.
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CONTENTS
3 Dear shareholder
5 Answering your questions
9 Fund performance
11 Commonly used terms
13 Shareholder meeting report
14 Portfolio of investments
33 Statement of net assets
34 Statement of operations
35 Statement of changes in net assets
37 Notes to financial statements
46 Financial highlights
<PAGE>
"These funds continue to achieve their goal of delivering attractive tax-free
income."
Photographic image of headshot of Chairman and Chief Executive
Officer of Nuveen.
Dear
shareholder
As we begin a new year, I am pleased to have this opportunity to report to you
on the performance of your funds, which continue to achieve their goal of
delivering attractive tax-free income from portfolios of investment-grade
quality municipal bonds. Because the proceeds from these bonds are used to
maintain and improve our nation's infrastructure, your investment has several
advantages: As you support the publicly funded projects that enhance your
communities, you benefit from the credit strength of these communities and
also receive income exempt from federal income taxes.
As of December 31, 1996, investors in the Florida funds were receiving
annual tax-free yields that ranged from 5.89% to 5.99%. To match these yields,
an investor in the 36% federal income tax bracket would have had to earn at
least 9.20% on taxable alternatives. In addition to providing highly
attractive levels of tax-free income, these funds have also continued to
generate strong price appreciation relative to similar funds. We are pleased
to report that in 1996, each of the funds saw an increase in share price over
that of 12 months ago; for some funds, this improvement was substantial. The
combination of rising share prices and net asset values reduced by 1996's
higher bond yields acted to narrow the discounts on NUF and NFL, while NQF now
trades at a premium. Over the past year, the funds covered in this report
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posted total returns on net asset value of 2.33% to 4.92%, equivalent to
taxable total returns of 5.31% to 8.30%. This performance is especially
encouraging in light of 1996's bond market, which offset a mid-year decline
with a post-election rally to end the year essentially where it began.
Several aspects of our conservative approach to management help position
these funds to perform well in changing market environments. First, through
our prudent use of leverage, we can moderate volatility even in the event of a
rising interest rate environment, and enhance income in periods of falling
rates. In addition, our conservative dividend policy promotes stability by
setting dividends at levels that are expected to remain consistent for at
least six months. In this way, Nuveen can effectively smooth out periods of
market fluctuations, enabling investors to depend on their tax-free income.
Nuveen continues to meet the challenge of our investors' expanding needs for
capital preservation, current income, and future growth. In November 1996, we
introduced the Nuveen Growth and Income Stock Fund, the first of three
equity-based mutual funds designed to provide a complement to our current
municipal bond funds.
In an additional move to increase the range of investment solutions
available to our investors, Nuveen has acquired Flagship Resources, Inc., a
highly regarded fixed income mutual fund specialist that shares our views on
the importance of research and emphasizes a conservative, value-oriented
approach to portfolio management. We have completed the combination of our
tax-exempt mutual fund activities, which resulted in the broadest selection of
municipal bond funds available in the U.S.
We at Nuveen are excited about these recent developments, and we are pleased
to be bringing our investors expanded options for achieving wealth
preservation, dependable income, and long-term asset growth. Thank you for
your continued confidence in Nuveen and our family of investments.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
February 17, 1997
<PAGE>
Answering your questions
Tom Spalding, head of Nuveen's portfolio management team, talks about the
municipal bond market and offers insights into factors that affected
performance over the past 12 months.
How would you categorize the bond market over the past 12 months?
In 1996, the bond market--despite some fluctuations--was relatively stable
compared with recent years. While 1994 represented the worst period in recent
bond market history and 1995 the best in a decade, last year's bond market
finished the year mostly unchanged, with a late second-half rebound reclaiming
much of the territory lost in a mid-year decline.
Throughout 1996, the municipal bond market continued to reward investors
with solid returns, dependable income, and opportunities to purchase bonds
with strong credit quality.
A look at the current economy shows a positive tone, reflecting a
combination of factors that historically bode well for the bond market,
especially long-term issues. Yields remain attractive, as inflation maintains
the same modest pace that it has demonstrated over the past five years, giving
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every indication of being well under control. At the same time, economic
expansion continues to be slow and steady, as evidenced by lack of price
pressure at the consumer and producer levels, strong consumer confidence, and
a stable money supply.
Photographic image of Tom Spalding, Portfolio Manager at Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on develop ments in the municipal market.
What were the principal factors affecting the bond market and Nuveen funds?
Following a strong start to the year, a succession of mixed reports affecting
interest rate and inflation forecasts caused investors to view the markets
alternatively with enthusiasm, then uncertainty. In the third quarter of 1996,
evidence of an economic slowdown, the strong U.S. dollar, and lack of
inflationary pressures combined to allay investor fears, sparking a rally in
bonds that continued through the post-election period.
The continued euphoria in the equity market focused investors' attention on
stocks and brought record amounts of new money into stock-based mutual funds,
bypassing the bond market. Some investors, concerned about a possible
correction in the stock market, decided to take their profits, but adopted a
wait-and-see attitude about investing capital gains, electing to go with
short-term vehicles until a clearer picture of market trends emerged. Both of
these events affected demand for bond issues of all types.
Last year also saw an improvement in discounts on Nuveen funds. Over the
past 12 months, rising share prices and lower net asset values resulting from
<PAGE>
higher yields combined to narrow the discounts on many Nuveen funds, with some
funds trading at a premium.
We believe that the current yields, stable dividends, and insulation against
bond calls offered by these exchange-traded funds present an attractive
investment opportunity, one that allows investors to lock in rates that will
be even more attractive if the equity market undergoes a long-expected
correction.
In light of current market conditions, has Nuveen changed the way it manages
these funds?
No. We continue to believe that value investing is the best investment
strategy for the funds we manage.
Successful value investing depends on obtaining detailed insights into the
outlook for individual issuers and the characteristics of specific
bonds--information that may go beyond that used by the market as a whole.
That's where our award-winning Research Department excels. To find the
municipal bonds we consider for our portfolios, Nuveen Research uses insights
gained from years of experience to help portfolio managers target bonds that
may be upgraded, which results in a higher level of quality and safety in the
portfolios, as well as bonds that are anticipated to increase in value as the
result of factors as yet unrecognized by the investment community in general.
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We continue to be committed to maintaining Nuveen's tradition of value
investing and prudent management, with a focus on building shareholder value,
providing research-oriented management, and delivering dependable performance,
in the belief that this will contribute to many more years of investment
success for our fund shareholders.
What effect will bond calls have on these portfolios?
The Florida funds covered in this report, which were issued between February
1991 and December 1992, have virtually no call exposure. It is important to
understand that the bond market has dealt with the issue of bond calls and
pre-refundings for years. Although this has put some pressure on the dividends
of the older Nuveen funds issued prior to 1991, all of our funds have
performed very well through this period.
In addition to strong call protection, shareholders in these funds continue
to enjoy attractive dividends. This positive trend in dividend payment can be
traced to the leveraged structure of these funds, which enables them to invest
the proceeds from the sale of short-term preferred shares in the purchase of
additional intermediate and long-term bonds, thereby increasing the
portfolio's income stream for the benefit of shareholders.
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NUVEEN FLORIDA INVESTMENT
QUALITY MUNICIPAL FUND
NQF
While the dividend income remains highly attractive compared with other
fixed-income alternatives, the Fund adjusted its monthly rate during the year,
seeking a level in line with its earnings.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
1/10/96 $0.0825
2/13/96 $0.0825
3/13/96 $0.0825
4/11/96 $0.0825
5/13/96 $0.0825
6/12/96 $0.0805
7/11/96 $0.0805
8/13/96 $0.0805
9/11/96 $0.0805
10/10/96 $0.0805
11/13/96 $0.0805
12/11/96 $0.0805
<CAPTION>
FUND HIGHLIGHTS 12/31/96
<S> <C>
Yield 5.99%
Taxable-equivalent yield 9.36%
Annual total return on NAV 4.68%
Taxable-equivalent total return 8.23%
Share price $16.125
NAV $15.62
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
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<TABLE>
NUVEEN FLORIDA QUALITY INCOME
MUNICIPAL FUND
NUF
In keeping with the Fund's objective of providing dependable tax-free income,
shareholders enjoyed 12 months of stable dividends. This dividend has remained
stable for 17 months.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
1/10/96 $0.0770
2/13/96 $0.0770
3/13/96 $0.0770
4/11/96 $0.0770
5/13/96 $0.0770
6/12/96 $0.0770
7/11/96 $0.0770
8/13/96 $0.0770
9/11/96 $0.0770
10/10/96 $0.0770
11/13/96 $0.0770
12/13/95 $0.0770
<CAPTION>
FUND HIGHLIGHTS 12/31/96
<S> <C>
Yield 5.96%
Taxable-equivalent yield 9.31%
Annual total return on NAV 4.92%
Taxable-equivalent total return 8.30%
Share price $15.50
NAV $15.66
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
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<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. This dividend has remained
stable for 46 months.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
1/10/96 $0.0650
2/13/96 $0.0650
3/13/96 $0.0650
4/11/96 $0.0650
5/13/96 $0.0650
6/12/96 $0.0650
7/11/96 $0.0650
8/13/96 $0.0650
9/11/96 $0.0650
10/10/96 $0.0650
11/13/96 $0.0650
12/11/96 $0.0650
<CAPTION>
FUND HIGHLIGHTS 12/31/96
<S> <C>
Yield 5.89%
Taxable-equivalent yield 9.20%
Annual total return on NAV 2.33%
Taxable-equivalent total return 5.31%
Share price $13.25
NAV $14.65
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, 1996) 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, this tax rate is assumed to be 36% for
shareholders, based on 1996 incomes of $121,300-$263,750 for investors filing
singly, $147,700-$263,750 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.
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Taxable equivalent total return
The total return an investor subject to a given 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 per share, 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 12-month period ended December 31, 1996.
Any future repur chases will be reported to shareholders in the next annual or
semiannual report.
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<TABLE>
<CAPTION>
SHAREHOLDER MEETING REPORT
On December 12, 1996, 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, Anthony T. Dean, Anne E. Impellizzeri,
and Peter R. Sawers.
NQF NUF NFL
<S> <C> <C> <C>
APPROVAL OF THE DIRECTORS
WAS REACHED AS FOLLOWS:
Lawrence H. Brown
For 13,949,073 11,959,803 11,199,053
Abstain 164,021 150,665 187,388
---------- ---------- ----------
Total 14,113,094 12,110,468 11,386,441
========== ========== ==========
Anthony T. Dean
For 13,949,073 11,961,603 11,201,688
Abstain 164,021 148,865 184,753
---------- ---------- ----------
Total 14,113,094 12,110,468 11,386,441
========== ========== ==========
Anne E. Impellizzeri
For 13,948,551 11,956,605 11,201,688
Abstain 164,543 153,863 184,753
---------- ---------- ----------
Total 14,113,094 12,110,468 11,386,441
========== ========== ==========
Peter R. Sawers
For 13,949,073 11,960,051 11,201,688
Abstain 164,021 150,417 184,753
---------- ---------- ----------
Total 14,113,094 12,110,468 11,386,441
========== ========== ==========
RATIFICATION OF AUDITORS
WAS REACHED AS FOLLOWS:
For 13,914,202 11,919,842 11,187,899
Against 50,051 54,133 65,524
Abstain 148,841 136,493 138,696
---------- ---------- ----------
Total 14,113,094 12,110,468 11,392,119
========== ========== ==========
</TABLE>
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<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN FLORIDA INVESTMENT QUALITY MUNICIPAL FUND (NQF)
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 10,750,000 Florida Housing Finance Agency, Homeowner
Mortgage Revenue Bonds, 1995 Series 2
(Refunding/New Money Issue), 6.200%, 7/01/27
(Alternative Minimum Tax) Aa 1/06 at 102 $ 10,947,370
2,250,000 Florida Housing Finance Agency, Homeowner
Mortgage Revenue Bonds, Series 2 (New Money
and Refunding Issue), 6.350%, 7/01/28
(Alternative Minimum Tax) Aa 1/07 at 102 2,297,385
4,000,000 Florida Housing Finance Agency, Multi-Family
Housing Revenue Refunding Bonds, 1991 Series C,
6.200%, 8/01/16 AAA 8/06 at 102 4,109,560
2,500,000 Florida Housing Finance Agency, Housing Revenue
Bonds, 1996 Series K-1 (Mariner Club Apartments
Project), 6.375%, 9/01/36 (Alternative
Minimum Tax) Aaa 9/06 at 102 2,552,350
2,000,000 Florida Housing Finance Agency, General Mortgage
Revenue Refunding Bonds, 1992 Series A,
6.400%, 6/01/24 AAA 6/02 at 103 2,054,800
Florida Keys Aqueduct Authority, Water Revenue
Refunding Bonds, Series 1991:
10,165,000 6.750%, 9/01/21 (Pre-refunded to 9/01/01) Aaa 9/01 at 101 11,242,795
835,000 6.750%, 9/01/21 Aaa 9/01 at 101 912,455
3,000,000 Florida Municipal Power Agency, Stanton II Project
Revenue Bonds, Series 1992, 4.500%, 10/01/27 Aaa 10/03 at 100 2,489,760
10,000,000 State of Florida, Full Faith and Credit, Jacksonville
Transportation Authority, Senior Lien Bonds,
Series 1989, 7.000%, 7/01/13 Aa 7/97 at 102 10,338,300
2,285,000 State of Florida, Full Faith and Credit, State Board of
Education, Public Education Capital Outlay Bonds,
1992 Series C, 5.875%, 6/01/23 Aa 6/03 at 101 2,313,608
6,955,000 State of Florida, Full Faith and Credit, State Board of
Education, Public Education Capital Outlay Bonds,
1993 Series F, 6.000%, 6/01/20 Aa 6/05 at 101 7,122,824
10,385,000 State of Florida, Full Faith and Credit, State Board of
Education, Capital Outlay Bonds, 1996 Series A,
4.750%, 1/01/16 Aaa 1/06 at 101 9,445,469
6,845,000 Brevard County Housing Finance Authority, Single
Family Mortgage Revenue Refunding Bonds,
Series 1991C, 7.000%, 9/01/23 Aaa 3/01 at 102 7,248,992
2,810,000 Broward County, Florida, Public Improvement
Refunding Bonds, Series 1986, 12.500%, 1/01/04 Aa No Opt. Call 4,096,193
5,245,000 Housing Finance Authority of Broward County,
Florida, GNMA and FNMA Collateralized Home
Mortgage Revenue Bonds, 1991 Series A,
7.350%, 3/01/23 (Alternative Minimum Tax) AAA 3/01 at 102 5,503,106
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<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 7,475,000 Certificates of Participation, Series 1991A,
The School Board of Broward County, Florida,
6.500%, 7/01/11 Aaa 7/01 at 102 $ 8,128,390
3,000,000 The Cape Canaveral Hospital District, Improvement
Revenue Certificates, Series 1991, 6.875%, 1/01/21 Aaa 1/01 at 102 3,276,630
11,000,000 Charlotte County, Florida, Utility System Revenue
Bonds, Series 1991, 7.000%, 10/01/14
(Pre-refunded to 10/01/01) Aaa 10/01 at 102 12,389,300
Collier County Water-Sewer District (Florida),
Water and Sewer Revenue Bonds, Series 1991:
7,345,000 6.500%, 7/01/21 (Pre-refunded to 7/01/99) Aaa 7/99 at 102 7,891,688
4,155,000 6.500%, 7/01/21 Aaa 7/99 at 102 4,421,252
3,700,000 Dade County, Florida, Public Improvement
Refunding Bonds, Series, 1986, 12.000%, 10/01/98 Aaa No Opt. Call 4,198,020
4,800,000 Dade County, Florida, Aviation Revenue Bonds
(Series U), 6.750%, 10/01/06 (Alternative
Minimum Tax) Aa 10/98 at 102 5,083,632
3,500,000 Dade County, Florida, Aviation Bonds, Series 1996A,
5.750%, 10/01/26 (Alternative Minimum Tax) Aaa 10/06 at 102 3,512,985
1,545,000 Housing Finance Authority of Dade County (Florida),
Single Family Mortgage Revenue Bonds, 1990
Series C, 7.750%, 9/01/22 (Alternative
Minimum Tax) Aaa 9/00 at 102 1,631,350
765,000 Housing Finance Authority of Dade County (Florida),
Single Family Mortgage Revenue Bonds, Series B,
7.250%, 9/01/23 (Alternative Minimum Tax) Aaa 3/01 at 102 801,965
1,000,000 Housing Finance Authority of Dade County (Florida),
Single Family Mortgage Revenue Bonds, Series
1995, 6.550%, 10/01/27 (Alternative Minimum Tax) AAA 4/05 at 102 1,029,190
6,750,000 The School District of Dade County, Florida, General
Obligation School Bonds, Series 1989,
7.375%, 7/01/08 (Pre-refunded to 7/01/99) Aaa 7/99 at 102 7,391,385
2,395,000 Dade County, Florida, Special Obligation Bonds
(Courthouse Center Project), Series 1994,
6.300%, 4/01/14 A 4/04 at 102 2,565,380
7,225,000 Dade County, Florida Special Obligation and
Refunding Bonds, Series 1996B, 0.000%, 10/01/20 Aaa 10/08 at 48 26/32 1,723,885
7,000,000 Escambia County Health Facilities Authority,
Health Facilities Revenue Refunding Bonds
(Baptist Hospital, Inc.), Series 1988 A,
8.700%, 10/01/14 BBB+ 10/98 at 102 7,522,900
950,000 City of Fort Myers, Florida, Improvement Revenue
Bonds (Special Assessment Geographical Area No.
24 Improvements), Series 1991A, 7.100%, 7/01/06 BBB- 7/01 at 102 1,012,026
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<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 2,000,000 City of Green Cove Springs, Florida, Utilities
Refunding Revenue Bonds, Series 1991,
6.750%, 10/01/10 Aaa 10/01 at 102 $ 2,204,180
3,530,000 Halifax Hospital Medical Center (Daytona Beach,
Florida), Hospital Revenue Refunding Bonds, 1991
Series A, 6.750%, 10/01/06 (Pre-refunded to
10/01/01) Aaa 10/01 at 102 3,931,961
5,000,000 The County of Hernando, Florida (Criminal Justice
Complex Financing Program), 1986 Series,
7.650%, 7/01/16 Aaa No Opt. Call 6,392,500
4,000,000 Hillsborough County Aviation Authority, Florida,
Tampa International Airport Revenue Refunding
Bonds 1991 Series A, 6.900%, 10/01/11 Aaa 10/99 at 102 4,312,360
3,500,000 Hillsborough County Aviation Authority, Florida,
Tampa International Airport Revenue Bonds, Series
1996B, 5.875%, 10/01/23 Aaa 10/06 at 102 3,595,375
2,590,000 Hillsborough County Aviation Authority, Florida,
Tampa International Airport Revenue Bonds, 1996
Series A, 6.000%, 10/01/23 (Alternative
Minimum Tax) Aaa 10/06 at 102 2,665,680
10,000,000 Jacksonville Electric Authority (Jacksonville, Florida),
St. Johns River Power Park System Special
Obligation Bonds, First Crossover Series,
6.000%, 10/01/15 Aa1 10/99 at 100 10,121,200
11,000,000 Jacksonville Health Facilities Authority, Health
Facilities Revenue Refunding Bonds, Daughters of
Charity National Health System, Inc., St. Vincent's
Medical Center Issue, Series 1990, 7.500%, 11/01/15
(Pre-refunded to 11/01/00) Aaa 11/00 at 102 12,415,700
11,000,000 Jacksonville Health Facilities Authority, Hospital
Facilities Refunding Revenue Bonds, Series 1991
(St. Luke's Hospital Association Project),
7.125%, 11/15/20 AA+ 11/01 at 102 12,058,970
4,250,000 City of Lakeland, Florida, Electric and Water Revenue
Bonds (Junior Subordinate Lien), Refunding and
Improvement Series 1996B, 6.000%, 10/01/11 Aaa No Opt.Call 4,603,643
Lee County, Florida, Solid Waste System Revenue
Bonds, Series 1991A:
6,500,000 7.000%, 10/01/05 (Alternative Minimum Tax) Aaa 10/01 at 102 7,220,200
4,750,000 7.000%, 10/01/06 (Alternative Minimum Tax) Aaa 10/01 at 102 5,276,300
3,935,000 Housing Finance Authority of Leon County (Florida),
Single Family Mortgage Revenue Bonds, 1991
Series A (Multi-County Program), 7.300%, 4/01/21
(Alternative Minimum Tax) Aaa 4/01 at 102 4,110,422
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 3,130,000 Housing Finance Authority of Manatee County,
Florida, Single Family Mortgage Revenue Bonds,
Series 1994-Sub Series 3, 7.600%, 11/01/26
(Alternative Minimum Tax) Aaa 11/05 at 105 $ 3,441,372
2,000,000 Housing Finance Authority of Manatee County,
Florida, Single Family Mortgage Revenue Bonds,
Series 1996-Sub Series 1, 7.450%, 5/01/27
(Alternative Minimum Tax) Aaa 5/06 at 105 2,216,360
10,620,000 Martin County, Florida, Pollution Control Revenue
Bonds (Florida Power andLight Company Project),
Series 1990, 7.300%, 7/01/20 Aaa 7/00 at 102 11,705,683
7,925,000 Adventist Health System/Sunbelt, Inc., Orange
CountyHealth Facilities Authority, Hospital
Revenue Bonds, Series 1991-B, 6.750%, 11/15/21 Aaa 11/01 at 102 8,709,100
4,500,000 Orange County, Florida, Tourist Development Tax
Refunding Revenue Bonds, Series 1992A,
6.000%, 10/01/21 Aaa 10/02 at 100 4,621,455
2,500,000 Orange County, Florida, Water and Wastewater
Revenue Bonds, Series 1987, 7.750%, 10/01/07
(Pre-refunded to 10/01/97) Aaa 10/97 at 102 2,626,975
Orange County Housing Finance Authority, GNMA
Collateralized Mortgage Revenue Bonds,
1991 Series A:
3,555,000 7.250%, 9/01/11 (Alternative Minimum Tax) AAA 3/01 at 103 3,753,227
8,810,000 7.375%, 9/01/24 (Alternative Minimum Tax) AAA 3/01 at 103 9,286,181
7,460,000 Orlando Utilities Commission, Water and Electric
Subordinated Revenue Bonds, Series 1989D,
5.000%, 10/01/23 Aa 10/99 at 100 6,723,325
5,000,000 Orlando Utilities Commission, Water and Electric
Revenue Refunding Bonds, Series 1992,
6.000%, 10/01/10 Aa1 No Opt. Call 5,412,050
11,180,000 Palm Beach County Health Facilities Authority,
Hospital Revenue Refunding Bonds, Series 1988
(JFK Medical Center, Inc. Projects),
8.875%, 12/01/18 (Pre-refunded to 12/01/98) N/R 12/98 at 102 12,330,869
1,400,000 City of Pembroke Pines, Florida, Capital Improvement
Revenue Bonds, Series 1995, 6.000%, 10/01/25 Aaa 10/04 at 102 1,456,966
6,000,000 Village of Royal Palm Beach, Florida, Utility System
Revenue Refunding Bonds, Series 1991,
6.875%, 10/15/15 Aaa 10/04 at 102 6,647,940
6,000,000 St. Johns County Industrial Development Authority,
Hospital Revenue Bonds (Flagler Hospital Project),
Series 1992, 6.000%, 8/01/22 A 8/02 at 102 6,027,540
5,000,000 St. Lucie County, Florida, Utility System Revenue
Bonds, Series 1990, 7.125%, 10/01/17
(Pre-refunded to 10/01/00) Aaa 10/00 at 102 5,575,650
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<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 4,000,000 City of St. Petersburg Health Facilities Authority
(Florida), Revenue Bonds, Series 1985 A (Allegany
Health System Loan Program), 7.000%, 12/01/15 Aaa 12/01 at 102 $ 4,467,840
5,250,000 Seminole County, Florida, Water and Sewer Revenue
Refunding and Improvement Bonds, Series 1992,
6.000%, 10/01/19 Aaa No Opt. Call 5,662,860
4,500,000 City of Tampa, Florida, Revenue Bonds (The Florida
Aquarium Project), Series 1992, 7.750%, 5/01/27
(Pre-refunded to 5/01/02) N/R 5/02 at 102 5,257,980
Tampa Sports Authority, 1995 Special Purpose Bonds,
State of Florida Sales Tax Payment Series (Tampa
Bay Arena Project):
1,250,000 5.750%, 10/01/20 Aaa No Opt. Call 1,308,900
1,250,000 5.750%, 10/01/25 Aaa No Opt. Call 1,314,325
City of Tampa, Florida, Water and Sewer Systems
Revenue Bonds, Series 1992:
2,900,000 6.000%, 10/01/17 (Pre-refunded to 10/01/02) Aaa 10/02 at 101 3,143,513
1,450,000 6.000%, 10/01/17 Aaa 10/02 at 101 1,502,679
County of Volusia, Florida, Airport System Revenue
Bonds, Series 1991 (Daytona Beach Regional
Airport):
475,000 7.000%, 10/01/21 (Alternative Minimum Tax)
(Pre-refunded to 10/01/00) Aaa 10/00 at 102 525,901
1,425,000 7.000%, 10/01/21 (Alternative Minimum Tax) Aaa 10/00 at 102 1,560,546
5,650,000 Certificates of Participation (School Board of Volusia
County, Florida Master Lease Program), Series 1991,
6.750%, 8/01/11 (Pre-refunded to 8/01/01) Aaa 8/01 at 102 6,286,754
- -------------------------------------------------------------------------------------------------------------------
$337,915,000 Total Investments - (cost $329,332,413) - 98.2% 355,729,427
=================--------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 6,588,225
- -------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $362,317,652
===================================================================================================================
<PAGE>
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 52 $244,497,875 69%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 11 76,514,857 22
PORTFOLIO OF A, A- A, A2, A3 2 8,592,920 2
INVESTMENTS: BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 2 8,534,926 2
Non-rated Non-rated 2 17,588,849 5
- -------------------------------------------------------------------------------------------------------------------
TOTAL 69 $355,729,427 100%
===================================================================================================================
<FN>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** 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.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN FLORIDA QUALITY INCOME MUNICIPAL FUND (NUF)
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 2,000,000 Certificates of Participation, Series 1994, The
Department of Corrections (State of Florida),
6.000%, 3/01/14 A1 3/04 at 102 $ 2,064,520
5,500,000 Florida Housing Finance Agency, Homeowner
Mortgage Revenue Bonds, 1995 Series 2
(Refunding/New Money Issue), 6.200%, 7/01/27
(Alternative Minimum Tax) Aa 1/06 at 102 5,600,980
1,000,000 Florida Housing Finance Agency, Housing Revenue
Bonds, 1995 Series F (Holly Cove Apartment
Project), 6.150%, 10/01/25 (Alternative
Minimum Tax) Aaa 10/05 at 102 1,010,070
1,750,000 Florida Housing Finance Agency, General Mortgage
Revenue Refunding Bonds, 1992 Series A,
6.400%, 6/01/24 AAA 6/02 at 103 1,797,950
5,255,000 Florida Housing Finance Agency, Home Ownership
Revenue RefundingBonds, 1987 Series G1,
8.595%, 11/01/17 AAA No Opt. Call 5,976,984
3,125,000 Florida Housing Finance Agency, Single Family
Mortgage Refunding Bonds, 1987 Series One
Class B, 7.100%, 1/01/17 AAA 3/97 at 103 3,226,625
1,250,000 State of Florida, Department of Transportation,
Turnpike Revenue Bonds, Series 1991A,
9.500%, 7/01/00 Aaa No Opt. Call 1,458,913
1,000,000 State of Florida, Department of Transportation,
Turnpike Revenue Refunding Bonds, Series 1993A,
5.000%, 7/01/15 Aaa 7/03 at 101 936,350
3,900,000 State of Florida, Full Faith and Credit, Jacksonville
Transportation Authority, Senior Lien Bonds,
Series 1989, 7.000%, 7/01/13 Aa 7/97 at 102 4,031,937
1,000,000 State of Florida, Full Faith and Credit, Pollution
Control Bonds, Series Y, Division of Bond Finance
of the Department of General Services,
6.600%, 7/01/17 Aa 7/02 at 101 1,084,490
State of Florida, Full Faith and Credit, State Board
of Education, Public Education Capital Outlay
Bonds, Series 1989-A (Refunding Bonds):
3,290,000 7.250%, 6/01/23 Aa 6/00 at 102 3,620,546
5,000,000 6.000%, 6/01/25 Aa 6/00 at 100 5,051,100
1,000,000 State of Florida, State Board of Education, Public
Education Capital Outlay Refunding Bonds, 1995
Series B, 5.875%, 6/01/25 Aa 6/05 at 101 1,015,110
1,000,000 Alachua County Health Facilities Authority (Florida),
Health Facilities Revenue Bonds, Series 1992R
(Shands Hospital at the University of Florida
Project), 5.750%, 12/01/15 Aaa 12/02 at 100 1,008,660
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 2,150,000 Alachua County Library District, Florida, General
Obligation Refunding Bonds, Series 1991,
6.600%, 8/01/10 Aaa 8/01 at 102 $ 2,349,004
1,500,000 Bradford County Health, Facilities Authority, Health
Facilities Revenue Refunding Bonds, Series 1993
(Santa Fe Healthcare Facilities Project),
6.050%, 11/15/16 AAA No Opt. Call 1,540,380
Brevard County Educational Facilities Authority
(Florida), Educational Facilities Refunding and
Improvement Revenue Bonds, Series 1992:
3,365,000 6.750%, 11/01/07 BBB 11/02 at 102 3,666,134
4,790,000 6.875%, 11/01/22 BBB 11/02 at 102 5,010,340
1,150,000 Brevard County, Florida, Sales Tax Refunding and
Improvement Revenue Bonds, Series 1993,
5.250%, 12/01/13 Aaa 12/03 at 102 1,124,114
5,000,000 Broward Country, Florida, Airport System Revenue
Bonds, Series B, 7.625%, 10/01/13 (Alternative
Minimum Tax) Aaa 10/98 at 102 5,365,750
2,000,000 Certificates of Participation, Series 1994A, Broward
County, Florida, 5.500%, 6/01/13 Aaa 6/04 at 102 1,992,420
Housing Finance Authority of Broward County,
Florida, Multifamily Housing Revenue Refunding Bonds,
Series 1996 (Tamarac Pointe Apartments Project-GNMA
Collateralized):
1,500,000 6.250%, 7/01/26 AAA 7/06 at 102 1,530,825
1,500,000 6.300%, 1/01/32 AAA 7/06 at 102 1,533,240
3,490,000 Charlotte County, Florida, Utility System Revenue
Bonds, Series 1991, 6.875%, 10/01/21
(Pre-refunded to 10/01/01) Aaa 10/01 at 102 3,912,290
10,000,000 Citrus County, Florida, Pollution Control Refunding
Revenue Bonds, Series 1992 A (Florida Power
Corporation Crystal River Power Plant Project),
6.625%, 1/01/27 A1 1/02 at 102 10,724,800
Collier County-Water Sewer District (Florida), Water
and Sewer Revenue Bonds, Series 1991:
3,910,000 6.500%, 7/01/21 (Pre-refunded to 7/01/99) Aaa 7/99 at 102 4,201,021
2,190,000 6.500%, 7/01/21 Aaa 7/99 at 102 2,330,335
8,450,000 Dade County, Florida, Aviation Revenue Bonds
(Series U), 6.750%, 10/01/06 (Alternative
Minimum Tax) Aa 10/98 at 102 8,949,311
12,500,000 Dade County, Florida, Aviation Bonds, Series 1996A,
5.750%, 10/01/26 (Alternative Minimum Tax) Aaa 10/06 at 102 12,546,375
1,500,000 Dade County, Florida, Aviation Revenue Bonds,
Series 1995B, 6.000%, 10/01/24 (Alternative
Minimum Tax) Aaa 10/05 at 102 1,538,670
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 4,395,000 Housing Finance Authority of Dade County (Florida),
Single Family Mortgage Revenue Refunding Bonds,
1991 Series D, 6.950%, 12/15/12 Aaa 12/01 at 102 $ 4,660,150
410,000 Housing Finance Authority of Dade County (Florida),
Single Family Mortgage Revenue Bonds, 1991
Series E, 7.000%, 3/01/24 Aaa 3/01 at 102 429,754
2,930,000 Dade County, Florida, Special Obligation Bonds,
Series 1996 (Metro-Dade Fire and Rescue Service
District), 6.000%, 4/01/06 Aaa No Opt. Call 3,177,351
4,260,000 Dade County, Florida Special Obligation and
Refunding Bonds, Series 1996B, 5.000%, 10/01/35 Aaa 10/06 at 102 3,878,687
3,420,000 Dade County, Florida, Water and Sewer System
Revenue Bonds, Series 1995, 5.500%, 10/01/18 Aaa 10/05 at 102 3,387,578
7,000,000 Dade County Health Facilities Authority, Hospital
Revenue Refunding Bonds, Series 1992 (North
Shore Medical Center Project), 6.500%, 8/15/15 Aaa 8/02 at 102 7,544,880
5,000,000 Town of Davie, Florida, Water and Sewer
Improvement and Refunding, Revenue Bonds,
Series 1992, 6.250%, 10/01/17 Aaa 10/02 at 102 5,319,400
2,205,000 City of Dunedin (Florida), Hospital Revenue Bonds
Series 1991 (Mease Health Care), 6.750%, 11/15/21
(Pre-refunded to 11/15/01) Aaa 11/01 at 102 2,460,912
7,350,000 City of Fort Lauderdale, Florida, General Obligation
Refunding Bonds, Series 1992, 6.300%, 7/01/07 Aa 1/99 at 101 7,608,353
4,450,000 Greater Orlando Aviation Authority, Airport Facilities
Revenue Bonds, Series 1988 of the City of Orlando,
Florida, 8.375%, 10/01/16 (Alternative
Minimum Tax) A1 10/98 at 102 4,795,765
8,540,000 Greater Orlando Aviation Authority, Airport
Facilities, Revenue Bonds, Series 1992A,
6.500%, 10/01/12 (Alternative Minimum Tax) Aaa 10/02 at 102 9,209,707
1,500,000 Hillsborough County Aviation Authority, Florida,
Tampa International Airport RevenueRefunding
Bonds, 1993 Series B, 5.500%, 10/01/13 Aaa 10/03 at 102 1,503,480
5,830,000 Hillsborough County Industrial Development
Authority (Florida), Pollution Control Revenue
Bonds (Tampa Electric Company Project), Series
1991, 7.875%, 8/01/21 AA 8/01 at 103 6,685,786
9,800,000 Hillsborough County Industrial Development
Authority, Pollution Control Revenue Refunding
Bonds (Tampa Electric Company Project) Series
1992, 8.000%, 5/01/22 AA 5/02 at 103 11,421,704
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
Hillsborough County, Florida, Capital Improvement, Non-Ad
Valorem Revenue Bonds (Museum of Science and Industry
Project), Series 1992:
$ 575,000 6.400%, 1/01/12 (Pre-refunded to 1/01/00) A 1/00 at 102 $ 620,207
1,000,000 6.450%, 1/01/22 (Pre-refunded to 1/01/00) A 1/00 at 102 1,080,020
4,750,000 City of Hollywood, Florida, Water and Sewer
Revenue Bonds, Series 1991, 6.875%, 10/01/21
(Pre-refunded to 10/01/01) Aaa 10/01 at 102 5,324,750
4,625,000 Jacksonville Electric Authority (Jacksonville, Florida),
Bulk Power Supply System Revenue Bonds
(Scherer 4 Project, Issue One, Series 1991A),
6.750%, 10/01/21 (Pre-refunded to 10/01/00) Aaa 10/00 at 101 1/2 5,078,250
Jacksonville Electric Authority (Jacksonville, Florida),
St. Johns River Power Park System Refunding
Revenue Bonds, Issue Two, Series Seven:
1,500,000 5.750%, 10/01/12 Aa1 10/02 at 101 1,533,060
2,000,000 5.500%, 10/01/14 Aa1 10/02 at 101 1,983,040
1,250,000 Jacksonville Electric Authority (Jacksonville, Florida),
St. Johns River Power Park System, Refunding
Revenue Bonds, Issue Two, Series Ten,
5.500%, 10/01/13 Aa1 4/03 at 101 1,242,450
5,000,000 Jacksonville Electric Authority Special Obligation
5th Crossover Series, 5.375%, 10/01/10 Aa1 10/04 at 101 5,023,800
3,170,000 City of Jacksonville, Florida, Excise Taxes Revenue
Bonds, Series 1993, 0.000%, 10/01/15
(Alternative Minimum Tax) Aaa No Opt. Call 1,115,206
10,395,000 City of Jacksonville, Florida, Hospital Revenue Bonds,
Series 1992 (University Medical Center, Inc.
Project), 6.600%, 2/01/21 AAA 2/02 at 102 11,199,781
2,750,000 Kissimmee Utility Authority (Florida), Electric
System Improvement and Refunding Revenue
Bonds, Series 1991, 6.500%, 10/01/17
(Pre-refunded to 10/01/01) Aaa 10/01 at 102 3,040,235
5,500,000 City of Lakeland, Florida, Electric and Water Revenue
Bonds, Series 1996, 5.500%, 10/01/26 Aa 10/06 at 102 5,400,725
1,500,000 City of Leesburg, Florida, Hospital Revenue
Refunding Bonds (Leesburg Regional Medical
Center Project) Series 1993A, 6.250%, 7/01/09 A 7/03 at 102 1,558,035
2,500,000 City of Leesburg, Florida, Capital Improvement
Hospital Revenue Bonds (Leesburg Regional
Medical Center Project) Series 1991A,
7.500%, 7/01/21 (Pre-refunded to 7/01/02) N/R 7/02 at 102 2,899,000
2,000,000 City of Opa-Locka, Florida, Capital Improvement
Revenue Bonds, Series 1994, 6.125%, 1/01/24 Aaa 1/04 at 102 2,094,300
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 2,000,000 Orange County Health Facilities Authority, Hospital
Revenue Bonds (Orlando Regional Healthcare
System), Series 1996A, 6.250%, 10/01/18 Aaa No Opt. Call $ 2,209,000
1,675,000 Orange County Health Facilities Authority, Florida,
Hospital Revenue Bonds, Series 1991-A (Adventist
Health System/Sunbelt, Inc.), 6.875%, 11/15/15 Aaa 11/01 at 102 1,860,540
250,000 Orange County Health Facilities Authority, Hospital
Revenue Bonds (Orlando Regional Healthcare
System), Series 1993B, 5.000%, 10/01/15 Aaa 10/03 at 102 232,290
5,000,000 Orange County (Florida), Health Facilities Authority,
Hospital Revenue Bonds, Series 1995 (Adventist
Health System/Sunbelt Obligated Group),
5.750%, 11/15/25 Aaa 11/05 at 102 5,037,800
2,500,000 Orange County Housing Finance Authority (Orange
County, Florida), Single Family Mortgage Revenue
Bonds (GNMA and Fannie Mae Mortgage-Backed
Securities Program) Series 1996A, 6.300%, 4/01/28
(Alternative Minimum Tax) AAA 4/06 at 102 2,548,125
Orange County, Florida, Tourist Development Tax
Refunding Revenue Bonds, Series 1992A:
3,000,000 6.500%, 10/01/19 Aaa 10/02 at 102 3,285,510
7,490,000 6.000%, 10/01/21 Aaa 10/02 at 100 7,692,153
5,975,000 Orlando (Florida), Utilities Commission, Water and
Electric Subordinated Revenue Bonds, Series 1991A,
6.500%, 10/01/20 (Pre-refunded to 10/01/01) Aaa 10/01 at 102 6,605,602
1,500,000 State of Florida, Orlando-Orange County Expressway
Authority, Junior Lien Revenue Refunding Bonds,
Series of 1993, 5.950%, 7/01/23 A- 7/01 at 102 1,501,200
10,700,000 Palm Beach County, Florida, Airport System Revenue
Refunding Bonds, Series 1991, 7.750%, 10/01/10 Aaa 10/01 at 102 12,242,940
2,500,000 Palm Beach County, Florida, Airport System Revenue
Refunding Bonds, Series 1992, 6.375%, 10/01/14 Aaa 10/02 at 102 2,684,600
2,025,000 City of Plantation, Florida, Electric Franchise Fee
Revenue Bonds, Series 1993, 5.375%, 8/15/12 Aaa 8/03 at 102 2,018,520
11,000,000 Reedy Creek Improvement District (Florida),
(Located in Orange and Osceola Counties), Utilities
Revenue Bonds, Series 1991-1, 6.500%, 10/01/16
(Pre-refunded to 10/01/01) Aaa 10/01 at 101 12,071,510
2,500,000 St. Lucie County, Florida, Solid Waste Disposal
Revenue Bonds (Florida Power and Light Company
Project), Series 1991, 7.150%, 2/01/23
(Alternative Minimum Tax) AA- 2/01 at 102 2,725,400
5,000,000 City of St. Petersburg Health Facilities Authority
(Florida), Revenue Bonds, Series 1985 A (Allegany
Health System Loan Program), 7.000%, 12/01/15 Aaa 12/01 at 102 5,584,800
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 5,500,000 City of St. Petersburg, Florida, Public Improvement
Refunding Revenue Bonds, Series 1992,
6.375%, 2/01/12 Aaa 2/02 at 102 $ 5,873,670
2,300,000 Sarasota County, Florida, Utility System Revenue
Bonds, Series 1994, 6.500%, 10/01/22
(Pre-refunded to 10/01/04) Aaa 10/04 at 102 2,615,123
2,000,000 The School Board of Seminolem County, Florida,
Certificates of Participation, Series 1994A,
6.125%, 7/01/19 Aaa 7/04 at 102 2,092,300
1,000,000 City of Stuart, Florida, Public Utilities, Revenue
Improvement Bonds, Series 1994, 6.800%, 10/01/24 Aaa 10/03 at 100 1,109,500
3,000,000 City of Tampa, Florida, Revenue Bonds (The Florida
Aquarium Project), Series 1992, 7.750%, 5/01/27
(Pre-refunded to 5/01/02) N/R 5/02 at 102 3,505,320
1,000,000 City of Venice, Florida, Utilities Revenue Refunding
Bonds, Series 1993, 5.500%, 7/01/14 Aaa 7/03 at 102 1,001,010
- -------------------------------------------------------------------------------------------------------------------
$294,585,000 Total Investments - (cost $292,260,488) - 96.1% 311,972,523
=================--------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 2.4%
$ 1,100,000 Atlantic Beach Improvement & Refunding Revenue
Bonds, Series 1994B (Fleet Landing Project),
Variable Rate Demand Bonds, 5.100%, 10/01/24+ VMIG-1 1,100,000
2,800,000 Hillsborough County Industrial Development
Authority (Tampa Electric Company), Variable
Rate Demand Bonds, 5.100%, 9/01/25+ Aa-2 2,800,000
4,000,000 The University Athletic Association, Inc., Capital
Improvement Revenue Bonds, Series 1990, Variable
Rate Demand Bonds, 4.950%, 2/01/20+ VMIG-1 4,000,000
- -------------------------------------------------------------------------------------------------------------------
$ 7,900,000 Total Temporary Investments - 2.4% 7,900,000
=================--------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 4,813,718
- -------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $324,686,241
===================================================================================================================
<PAGE>
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 53 $201,569,390 64%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 16 72,977,792 23
PORTFOLIO OF A+ A1 3 17,585,085 6
INVESTMENTS A, A- A, A2, A3 4 4,759,462 2
(EXCLUDING BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 2 8,676,474 3
TEMPORARY Non-rated Non-rated 2 6,404,320 2
INVESTMENTS):
- -------------------------------------------------------------------------------------------------------------------
TOTAL 80 $311,972,523 100%
===================================================================================================================
<FN>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** 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.
+ 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.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NUVEEN INSURED FLORIDA PREMIUM INCOME MUNICIPAL FUND (NFL)
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 750,000 Florida Housing Agency Housing Revenue Bonds,
1996 Series V (Crossings at Indian Run Apts
Project), 6.100%, 12/01/26 (Alternative
Minimum Tax) Aaa 12/06 at 102 $ 755,003
Florida Housing Finance Agency, Housing Revenue
Bonds, 1996 Series D-1 (Sterling Palms Apartments
Project):
1,000,000 6.300%, 12/01/16 (Alternative Minimum Tax) Aaa 6/06 at 102 1,038,720
1,500,000 6.400%, 12/01/26 (Alternative Minimum Tax) Aaa 6/06 at 102 1,545,225
1,590,000 Florida Housing Finance Agency, Housing Revenue
Bonds, 1995 Series E (Williamsburg Village
Apartments Project), 6.100%, 12/01/20
(Alternative Minimum Tax) Aaa 12/05 at 102 1,612,673
3,000,000 Florida Municipal Power Agency, All-Requirements
Power Supply Project Revenue Bonds, Series 1992,
6.250%, 10/01/21 (Pre-refunded to 10/01/02) Aaa 10/02 at 102 3,314,430
Florida Municipal Power Agency, Stanton II Project
Revenue Bonds, Series 1992:
4,000,000 6.500%, 10/01/20 (Pre-refunded to 10/01/02) Aaa 10/02 at 102 4,469,440
6,625,000 6.000%, 10/01/27 (Pre-refunded to 10/01/02) Aaa 10/02 at 102 7,232,645
4,250,000 Florida Municipal Power Agency, St. Lucie Project
Refunding Revenue Bonds, Series 1992,
5.250%, 10/01/21 Aaa 10/02 at 102 4,038,053
1,500,000 Florida Municipal Power Agency, Tri-City Project
Refunding Revenue Bonds, Series 1992,
5.500%, 10/01/19 Aaa 10/03 at 100 1,459,080
State of Florida, Department of Environmental
Protection Preservation 2000 Revenue Bonds,
Series 1994A:
6,350,000 4.750%, 7/01/12 Aaa 7/04 at 101 5,835,777
3,500,000 4.900%, 7/01/13 Aaa 7/04 at 101 3,271,625
4,500,000 State of Florida, Department of Environmental
Protection, Preservation 2000 Revenue Bonds,
Series 1995A, 5.750%, 7/01/11 Aaa 7/05 at 101 4,654,710
2,000,000 State of Florida, Department of Transportation,
Turnpike Revenue Bonds, Series 1991A,
7.000%, 7/01/04 Aaa 7/01 at 102 2,220,100
3,995,000 State of Florida, Department of Transportation,
Turnpike Revenue Bonds, Series 1992A,
6.350%, 7/01/22 (Pre-refunded to 7/01/02) Aaa 7/02 at 101 4,390,026
12,185,000 State of Florida, Department of Transportation,
Turnpike Revenue Bonds, Series 1995A,
5.500%, 7/01/13 Aaa 7/05 at 101 12,261,156
2,500,000 State of Florida, State Board of Education, Public
Education Capital Outlay Bonds, 1994 Series C,
5.600%, 6/01/20 Aaa 6/05 at 101 2,498,250
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 4,200,000 State of Florida, State Board of Education, Public
Education Capital Outlay Refunding Bonds,
1995 Series D, 4.750%, 6/01/18 Aaa 6/05 at 101 $ 3,755,220
3,750,000 Broward County Health Facilities Authority (Florida),
Hospital Revenue Bonds (Holy Cross Hospital,
Inc.), Series 1993, 5.850%, 6/01/12 Aaa 6/03 at 102 3,868,613
1,000,000 The School District of Broward County, Florida
General Obligation School Bonds, Series 1989,
7.125%, 2/15/08 (Pre-refunded to 2/15/99) Aaa 2/99 at 102 1,080,960
3,400,000 The School District of Broward County, Florida,
General Obligation Bonds, Series 1988,
7.750%, 2/15/07 (Pre-refunded to 2/15/98) Aaa 2/98 at 102 3,615,798
1,000,000 Clay County, Florida, Utilities System Revenue
Bonds, Series 1993B, 5.000%, 11/01/07 Aaa 11/03 at 102 929,590
1,000,000 City of Cocoa, Florida, Water and Sewer System
Refunding Revenue Bonds, Series 1993A,
5.000%, 10/01/23 Aaa 10/03 at 100 916,580
7,000,000 Dade County, Florida, Public Improvement
Refunding Bonds, Series 1986, 12.000%, 10/01/97 Aaa No Opt. Call 7,435,050
3,000,000 Dade County, Florida, Aviation Revenue Refunding
Bonds (Series Y), 5.500%, 10/01/11 Aaa 10/03 at 102 3,039,840
1,900,000 Dade County, Florida, Public Facilities Revenue
Bonds (Jackson Memorial Hospital), Series 1993,
5.250%, 6/01/23 Aaa 6/03 at 102 1,787,596
1,000,000 The School District of Dade County, Florida,
General Obligation School Bonds, Series 1989,
7.200%, 7/01/02 (Pre-refunded to 7/01/99) Aaa 7/99 at 102 1,090,900
The School District of Dade County, Florida, General
Obligation School Bonds, Series 1994:
5,000,000 5.000%, 8/01/12 Aaa 8/03 at 101 4,798,450
3,500,000 5.000%, 8/01/14 Aaa 8/03 at 101 3,321,220
Dade County, Florida, Seaport Revenue Refunding
Bonds, Series 1995:
1,000,000 6.200%, 10/01/05 Aaa No Opt. Call 1,109,160
1,100,000 5.750%, 10/01/15 Aaa 10/05 at 102 1,117,083
Dade County, Florida, Water and Sewer System
Revenue Bonds, Series 1995:
500,000 6.250%, 10/01/10 Aaa No Opt. Call 553,930
3,730,000 5.750%, 10/01/22 Aaa 10/05 at 102 3,775,879
2,000,000 5.500%, 10/01/25 Aaa 10/05 at 102 1,969,980
5,600,000 Dade County Health Facilities Authority (Florida),
Hospital Revenue Refunding Bonds, Series 1993A
(Baptist Hospital of Miami Project), 5.250%, 5/15/21 Aaa 5/03 at 101 5,280,408
3,000,000 The City of Daytona Beach, Florida, Water and
Sewer Revenue Bonds, Series 1992,
5.500%, 11/15/17 Aaa 11/02 at 100 2,946,840
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 1,500,000 City of Dunedin (Florida), Hospital Revenue
Refunding Bonds, Series 1993 (Mease Health
Care), 5.375%, 11/15/21 Aaa 11/03 at 101 $ 1,438,380
5,315,000 Duval County Housing Finance Authority, Single
Family Mortgage Revenue Bonds (GNMA
Mortgage-Backed Securities Program), Series 1994,
6.700%, 10/01/26 (Alternative Minimum Tax) Aaa 10/04 at 102 5,526,324
3,005,000 Escambia County Housing Finance Authority
(Florida), Single Family Mortgage Revenue Bonds,
Series 1992A (Multi-County Program),
6.900%, 4/01/20 (Alternative Minimum Tax) Aaa 10/02 at 102 3,129,527
1,210,000 Greater Orlando Aviation Authority, Airport
Facilities Revenue Bonds, 1987 Series,
7.400%, 10/01/06 (Alternative Minimum Tax) Aaa 1/97 at 102 1,237,782
2,000,000 Greater Orlando Aviation Authority, Airport
Facilities, Revenue Bonds, Series 1992A,
6.375%, 10/01/21 (Alternative Minimum Tax) Aaa 10/02 at 102 2,116,120
1,400,000 Hernando County, Florida, Capital Improvement
Refunding Revenue Bonds, Series 1993,
5.750%, 2/01/14 Aaa 2/03 at 102 1,424,808
10,500,000 Hillsborough County Aviation Authority, Florida,
Tampa International Airport Revenue Refunding
Bonds, 1993 Series B, 5.600%, 10/01/19 Aaa 10/03 at 102 10,359,510
1,000,000 Hillsborough County Aviation Authority, Florida,
Tampa International Airport Revenue Bonds,
1993 Series D, 5.375%, 10/01/23
(Alternative Minimum Tax) Aaa 10/03 at 102 934,150
6,000,000 Hillsborough County Aviation Authority, Florida,
Tampa, International Airport Revenue Bonds,
Series 1996B, 5.700%, 10/01/15 Aaa 10/06 at 102 6,073,740
2,500,000 Hillsborough County Industrial Development
Authority, Industrial Development Revenue Bonds,
Series 1994 (University Community Hospital),
6.500%, 8/15/19 Aaa No Opt.Call 2,847,600
2,000,000 Hillsborough County, Florida, Refunding Utility
Revenue Bonds, Series 1991A, 6.625%, 8/01/11 Aaa 8/02 at 102 2,187,160
7,300,000 City of Hollywood, Florida, Water and Sewer Revenue
Refunding Bonds, Series 1993, 5.600%, 10/01/23 Aaa 10/03 at 102 7,175,097
8,000,000 Indian River County, Florida, Water and Sewer
Revenue Bonds, Series 1993A, 5.250%, 9/01/24 Aaa 9/08 at 100 7,711,280
3,605,000 City of Jacksonville, Florida, Housing Revenue
Refunding Bonds, Series 1993A (GNMA
Collateralized-Windermere Manor Apartments
Project), 5.875%, 3/20/28 AAA 9/03 at 102 3,613,147
3,350,000 Jacksonville Port Authority, Airport Revenue
Refunding Bonds, Series 1993, 5.250%, 10/01/17
(Alternative Minimum Tax) Aaa 10/03 at 102 3,154,025
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 1,000,000 Jacksonville Port Authority (Jacksonville, Florida),
1993 Port Facilities Revenue Refunding Bonds,
7.625%, 11/01/07 Aaa 11/03 at 102 $ 1,179,540
3,800,000 Jacksonville Port Authority (Jacksonville, Florida),
1996 Port Facilities Revenue Refunding Bonds,
5.625%, 11/01/18 (Alternative Minimum Tax) Aaa 11/06 at 102 3,752,652
1,025,000 Jacksonville Sales Tax Revenue Bonds, Series 1995
(River City Renaissance Project), 5.500%, 10/01/10 Aaa 10/05 at 101 1,045,449
City of Lakeland, Florida, Electric and Water Revenue
Bonds (Junior Subordinate Lien), Refunding and
Improvement Series 1996B:
4,785,000 6.000%, 10/01/08 Aaa No Opt. Call 5,230,388
4,000,000 6.000%, 10/01/09 Aaa No Opt. Call 4,355,640
10,235,000 School Board of Okaloosa County, Florida, Sales Tax
Revenue Bonds, Series 1995, 6.000%, 9/01/99 Aaa No Opt. Call 10,730,067
1,000,000 City of Opa-Locka, Florida, Capital Improvement
Revenue Bonds, Series 1994, 7.000%, 1/01/14 Aaa 1/04 at 102 1,132,020
6,000,000 Orange County, Florida, Tourist Development Tax
Refunding Revenue Bonds, Series 1992A,
6.250%, 10/01/13 Aaa 10/02 at 102 6,415,440
2,000,000 Orange County, Florida, Water Utilities System
Revenue Bonds, Series 1992, 6.250%, 10/01/17 Aaa 4/02 at 102 2,122,200
6,000,000 Orlando Utilities Commission, Water and Electric
Subordinated Revenue Bonds, Series 1989D,
5.500%, 10/01/20 Aaa 10/99 at 100 5,840,520
City of Palm Bay, Florida, Utility System Refunding
Revenue Bonds, Series 1994 (Palm Bay Utility
Corporation Project):
1,000,000 6.200%, 10/01/17 (Pre-refunded to 10/01/02) Aaa 10/02 at 102 1,102,190
3,295,000 6.200%, 10/01/22 (Pre-refunded to 10/01/02) Aaa 10/02 at 102 3,631,716
5,550,000 Palm Beach County, Florida, Airport System Revenue
Refunding Bonds, Series 1991, 7.625%, 10/01/04 Aaa 10/01 at 102 6,333,827
Palm Beach County, Florida, Administrative
Complex Revenue Refunding Bonds, Series 1993:
1,265,000 5.200%, 6/01/06 Aaa No Opt. Call 1,296,663
6,500,000 5.250%, 6/01/11 Aaa No Opt. Call 6,522,555
Palm Beach County, Florida, Criminal Justice
Facilities, Revenue Refunding Bonds, Series 1993:
3,000,000 5.375%, 6/01/08 Aaa No Opt. Call 3,108,720
4,000,000 5.375%, 6/01/10 Aaa No Opt. Call 4,086,240
2,335,000 Pasco County, Florida, Gas Tax Refunding Revenue
Bonds, Series 1992, 5.750%, 8/01/13 Aaa 8/02 at 102 2,380,089
5,925,000 Polk County Industrial Development Authority,
Industrial Development Variable Rate Revenue
Bonds, 1985 Series 2 (Winter Haven Hospital
Project), 6.250%, 9/01/15 Aaa 9/02 at 103 6,284,114
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 2,250,000 City of Port Orange, Florida, Water and Sewer
Refunding Junior Lien Revenue Bonds, Series 1993,
5.250%, 10/01/21 Aaa 10/03 at 101 $ 2,137,793
1,000,000 City of St. Lucie, Florida, Utility System Revenue
Bonds, Series 1994, 6.000%, 9/01/24 Aaa 9/04 at 100 1,034,320
10,000,000 Reedy Creek Improvement District (Florida),
Utilities Revenue Improvement and Refunding
Bonds, Series 1994-1, 5.000%, 10/01/19 Aaa 10/04 at 101 9,287,300
5,000,000 Reedy Creek Improvement District (Florida),
Utilities Revenue Bonds, Series 1987-1,
8.500%, 10/01/09 (Alternative Minimum Tax) Aaa 10/97 at 102 5,260,600
St. Lucie County, Florida, Utility System Refunding
and Revenue Bonds, Series 1993:
5,000,000 5.500%, 10/01/15 Aaa 10/03 at 102 5,014,650
1,200,000 5.500%, 10/01/21 Aaa 10/03 at 102 1,226,916
3,000,000 Sarasota-Manatee Airport Authority, Airport System
Revenue Refunding Bonds, Series 1996,
5.375%, 8/01/11 Aaa 8/06 at 102 3,012,690
2,500,000 Seminole County, Florida, Solid Waste Disposal
System Revenue Refunding Bonds, Series 1993,
5.250%, 10/01/20 Aaa 10/03 at 102 2,384,025
11,385,000 Seminole County, Florida, Water and Sewer Revenue
Refunding and Improvement Bonds, Series 1992,
6.000%, 10/01/19 Aaa No Opt. Call 12,280,316
1,300,000 City of Sunrise, Florida, Utility System Revenue
Refunding Bonds, Series 1996, 5.800%, 10/01/11 Aaa 10/06 at 102 1,358,617
City of Sunrise, Florida, Utility System Revenue
Bonds, Series 1996A:
5,900,000 5.750%, 10/01/16 Aaa 10/06 at 101 6,015,522
8,700,000 5.750%, 10/01/21 Aaa 10/06 at 101 8,807,010
2,700,000 5.750%, 10/01/26 Aaa 10/06 at 101 2,733,210
2,500,000 City of Tampa, Florida, Allegany Health System
Revenue Bonds, St. Joseph's Hospital, Inc. Issue,
Series 1993, 5.125%, 12/01/23 Aaa 12/03 at 102 2,308,075
1,100,000 County of Volusia, Florida, Tourist Development
Tax Refunding Revenue Bonds, Series 1993,
5.250%, 12/01/13 Aaa 12/02 at 101 1,075,238
1,940,000 City of West Palm Beach, Florida, Guaranteed
Entitlement Revenue Refunding Bonds, Series 1993,
5.375%, 10/01/14 Aaa 10/03 at 101 1,917,980
- -------------------------------------------------------------------------------------------------------------------
$308,800,000 Total Investments - (cost $305,259,626) - 98.1% 314,322,952
=================--------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.6%
$ 1,900,000 The University Athletic Association, Inc., Capital
================= Improvement Revenue Bonds, Series 1990,
Variable Rate Demand Bonds, 4.950%, 2/01/20+ VMIG-1 $ 1,900,000
- -------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 4,107,977
- -------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $320,330,929
===================================================================================================================
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 85 $314,322,952 100%
RATINGS*
PORTFOLIO OF
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
- -------------------------------------------------------------------------------------------------------------------
TOTAL 85 $314,322,952 100%
===================================================================================================================
<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, any of which ensure the timely payment of principal and
interest.
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
** 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.
+ 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.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS
(Unaudited)
NQF NUF NFL
<S> <C> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $355,729,427 $311,972,523 $314,322,952
Temporary investments in short-term municipal
securities, at amortized cost (note 1) -- 7,900,000 1,900,000
Cash 332,818 -- --
Receivables:
Interest 6,836,835 5,453,952 5,146,131
Investments sold 101,329 65,000 --
Other assets 15,725 26,426 13,607
------------ ------------ ------------
Total assets 363,016,134 325,417,901 321,382,690
------------ ------------ ------------
LIABILITIES
Cash overdraft -- 134,757 421,254
Accrued expenses:
Management fees (note 6) 196,276 176,320 173,840
Other 145,863 138,104 156,753
Preferred share dividends payable 7,915 2,141 11,096
Common share dividends payable 348,428 280,338 288,818
------------ ------------ ------------
Total liabilities 698,482 731,660 1,051,761
------------ ------------ ------------
Net assets (note 7) $362,317,652 $324,686,241 $320,330,929
============ ============ ============
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 16,153,439 14,027,244 14,290,929
============ ============ ============
Netasset value per Common share outstanding
(net assets less Preferred shares at
liquidation value, divided by Common
shares outstanding) $ 15.62 $ 15.66 $ 14.65
============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Six months ended December 31, 1996
(Unaudited)
NQF NUF NFL
<S> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $11,247,644 $ 9,589,981 $ 8,580,190
------------ ------------ ------------
Expenses:
Management fees (note 6) 1,156,119 1,039,045 1,021,403
Preferred shares--auction fees 137,500 131,251 138,750
Preferred shares--dividend disbursing agent fees 13,333 19,210 13,750
Shareholders' servicing agent fees and expenses 19,109 14,785 12,691
Custodian's fees and expenses 33,032 31,256 31,530
Trustees' fees and expenses (note 6) 1,578 1,456 1,435
Professional fees 9,433 5,740 8,018
Shareholders' reports--printing and mailing expenses 41,470 35,209 29,473
Stock exchange listing fees 12,238 12,144 8,085
Investor relations expense 6,801 8,851 9,039
Other expenses 10,612 13,878 12,199
------------ ------------ ------------
Total expenses 1,441,225 1,312,825 1,286,373
------------ ------------ ------------
Net investment income 9,806,419 8,277,156 7,293,817
============ ============ ============
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions
(notes 1 and 3) 311,860 47,954 (107,948)
Net change in unrealized appreciation or depreciation
of investments 5,261,734 5,452,654 7,801,868
------------ ------------ ------------
Net gain from investments 5,573,594 5,500,608 7,693,920
------------ ------------ ------------
Net increase in net assets from operations $15,380,013 $13,777,764 $14,987,737
============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN
NET ASSETS
(Unaudited)
NQF NUF
Six months ended Year ended Six months ended Year ended
12/31/96 6/30/96 12/31/96 6/30/96
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 9,806,419 $ 19,662,366 $ 8,277,156 $ 16,531,611
Net realized gain (loss) from investment
transactions (notes 1 and 3) 311,860 (397,223) 47,954 (248,628)
Net change in unrealized appreciation or
depreciation of investments 5,261,734 (2,470,834) 5,452,654 100,978
------------ ------------ ------------ ------------
Net increase in net assets from operations 15,380,013 16,794,309 13,777,764 16,383,961
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (7,793,965) (15,872,983) (6,480,589) (12,983,420)
Preferred shareholders (1,635,543) (4,078,504) (1,625,747) (3,852,321)
From accumulated net realized gains from
investment transactions:
Common shareholders -- (61,033) -- --
Preferred shareholders -- (17,138) -- --
------------ ------------ ------------ ------------
Decrease in net assets from distributions
to shareholders (9,429,508) (20,029,658) (8,106,336) (16,835,741)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from Common shares issued to
shareholders due to reinvestment of
distributions 658,946 1,409,422 -- 115,408
------------ ------------ ------------ ------------
Net increase in net assets derived from capital
share transactions 658,946 1,409,422 -- 115,408
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 6,609,451 (1,825,927) 5,671,428 (336,372)
Net assets at beginning of period 355,708,201 357,534,128 319,014,813 319,351,185
------------ ------------ ------------ ------------
Net assets at end of period $362,317,652 $355,708,201 $324,686,241 $319,014,813
============ ============ ============ ============
Balance of undistributed net investment
income at end of period $ 856,452 $ 479,541 $ 536,314 $ 365,494
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
NFL
Six months ended Year ended
12/31/96 6/30/96
<S> <C> <C>
OPERATIONS
Net investment income $ 7,293,817 $ 14,716,100
Net realized gain (loss) from investment
transactions (notes 1 and 3) (107,948) (370,759)
Net change in unrealized appreciation
or depreciation of investments 7,801,868 3,597,697
------------ ------------
Net increase in net assets from
operations 14,987,737 17,943,038
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (5,573,476) (11,146,955)
Preferred shareholders (1,636,633) (3,758,988)
From accumulated net realized gains from
investment transactions:
Common shareholders -- --
Preferred shareholders -- --
------------ ------------
Decrease in net assets from distributions
to shareholders (7,210,109) (14,905,943)
------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from Common shares issued to
shareholders due to reinvestment of
distributions -- --
------------ ------------
Net increase in net assets derived
from capital share transactions -- --
------------ ------------
Net increase (decrease) in net assets 7,777,628 3,037,095
Net assets at beginning of period 312,553,301 309,516,206
------------ ------------
Net assets at end of period $320,330,929 $312,553,301
============ ============
Balance of undistributed net investment
income at end of period $ 558,022 $ 474,314
============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL
STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT
ACCOUNTING POLICIES
At December 31, 1996, 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).
Each Fund invests primarily in a diversified
portfolio of municipal obligations issued by state
and local government authorities within the state of
Florida. The Funds are registered under the
Investment Company Act of 1940 as closed-end,
diversified management investment companies.
The following is a summary of significant accounting
policies followed by the Funds in the preparation of
their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation Portfolio securities for which market
quotations are readily available are valued at the
mean between the quoted bid and asked prices or the
yield equivalent. Portfolio securities for which
market quotations are not readily available are
valued at fair value by consistent application of
methods determined in good faith by the Board of
Trustees. Temporary investments in securities that
have variable rate and demand features qualifying
them as short-term securities are traded and valued
at amortized cost.
Securities Transactions Securities transactions are recorded on a trade date
basis. Realized gains and losses from such
transactions are determined on the specific
identification method. Securities purchased or sold
on a when-issued or delayed delivery basis may be
settled a month or more after the transaction date.
The securities so purchased are subject to market
fluctuation during this period. The Funds have
instructed the custodian to segregate assets in a
separate account with a current value at least equal
to the amount of their purchase commitments. At
December 31, 1996, there were no such 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.
<PAGE>
Income Taxes The Funds intend to comply with the requirements of
the Internal Revenue Code applicable to regulated
investment companies by distributing to shareholders
all of their 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
personal income taxes, to retain such tax-exempt
status when distributed to shareholders of the Funds.
Net realized capital gain and market discount
distributions are subject to federal taxation.
Dividends and Tax-exempt net investment income is declared as a
Distributions to dividend monthly and payment to is made or
Shareholders reinvestment is credited to shareholder accounts
after month-end. Net realized capital gains and/or
market discount from investment transactions are
distributed to shareholders not less frequently than
annually. Furthermore, capital gains are distributed
only to the extent they exceed available capital
loss carryovers.
Distributions to shareholders of tax-exempt net
investment income, net realized capital gains and/or
market discount are recorded on the ex-dividend
date. The amount and timing of distributions are
determined in accordance with federal income tax
regulations, which may differ from generally
accepted accounting principles. Accordingly,
temporary over-distributions as a result of these
differences may occur and will be classified as
either distributions in excess of net investment
income, distributions in excess of net realized
gains and/or distributions in excess of net ordinary
taxable income from investment transactions, where
applicable.
<PAGE>
Preferred Shares The Funds have issued and outstanding $25,000
stated value Preferred shares. Each Fund's Preferred
shares are issued in more than one Series. The
dividend rate on each Series may change every seven
days, as set by the auction agent. The number of
shares outstanding, by Series and in total, for each
Fund, at December 31, 1996, were as follows:
<TABLE>
<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
===== ===== =====
</TABLE>
Insurance NFL invests 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
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 Fund. 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 any municipal security covered
by the Portfolio Insurance policy at the time of
its sale.
<PAGE>
Derivative Financial In October 1994, the Financial Accounting Standards
Board (FASB) issued Statement Instruments 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, 1996.
Use of Estimates The preparation of financial statements
in conformity with generally accepted accounting
principles requires management to make estimates and
assumptions that affect the reported amounts of
assets and liabilities at the date of the financial
statements and the reported amounts of increases and
decreases in net assets from operations during the
reporting period.
2. FUND SHARES
Transactions in Common shares were as follows:
<TABLE>
<CAPTION>
NQF NUF
Six months ended Year ended Six months ended Year ended
12/31/96 6/30/96 12/31/96 6/30/96
<S> <C> <C> <C> <C>
Shares issued to shareholders due
to reinvestment of distributions 40,818 88,474 -- 7,529
------ ------ ----- -----
Net increase 40,818 88,474 -- 7,529
====== ====== ===== =====
<CAPTION>
NFL
Six months ended Year ended
12/31/96 6/30/96
<S> <C> <C>
Shares issued to shareholders due
to reinvestment of distributions -- --
----- -----
Net increase -- --
===== =====
</TABLE>
<PAGE>
3. SECURITIES TRANSACTIONS
Purchase and sales (including maturities) of
investments in municipal securities and temporary
municipal investments during the six months ended
December 31, 1996, were as follows:
<TABLE>
<CAPTION>
NQF NUF NFL
<S> <C> <C> <C>
PURCHASES
Investments in municipal securities $ 6,065,559 $17,880,140 $23,689,850
Temporary municipal investments 11,800,000 19,600,000 18,800,000
SALES AND MATURITIES
Investments in municipal securities 8,959,298 24,206,756 27,172,518
Temporary municipal investments 12,600,000 12,300,000 21,600,000
=========== =========== ===========
</TABLE>
At December 31, 1996, 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, 1996, the Funds' last fiscal year end,
the 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:
<TABLE>
<CAPTION>
NQF NUF NFL
<S> <C> <C> <C>
Expiration year:
2001 $ -- $ -- $ 52,596
2002 -- 2,053,171 1,801,048
2003 -- 95,170 555,689
2004 103,285 142,676 461,823
--------- ---------- ----------
Total $103,285 $2,291,017 $2,871,156
========== =========== ===========
</TABLE>
<PAGE>
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On January 2, 1997, the Funds declared Common share
dividend distributions from their tax-exempt net
investment income which were paid February 3, 1997,
to shareholders of record on January 15, 1997, as
follows:
<TABLE>
<CAPTION>
NQF NUF NFL
<S> <C> <C> <C>
Dividend per share $.0805 $.0770 $.0650
====== ====== ======
</TABLE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized
depreciation of investments at December 31, 1996,
were as follows:
<TABLE>
<CAPTION>
NQF NUF NFL
<S> <C> <C> <C>
Gross unrealized:
Appreciation $26,397,014 $19,756,706 $9,373,637
Depreciation -- (44,671) (310,311)
------------ ------------ ----------
Net unrealized appreciation $26,397,014 $19,712,035 $9,063,326
=========== =========== ===========
</TABLE>
<PAGE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS
WITH AFFILIATES
Under the Funds' investment management agreements
with Nuveen Advisory Corp. (the "Adviser"), a wholly
owned subsidiary of The John Nuveen Company, each
Fund pays to the Adviser an annual management fee,
payable monthly, at the rates set forth below, which
are based upon the average daily net asset value of
each Fund:
<TABLE>
<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
</TABLE>
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.
<PAGE>
7. COMPOSITION OF NET ASSETS At December 31, 1996,
net assets consisted of:
<TABLE>
<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 161,534 140,272 142,909
Paid-in surplus 224,977,488 201,867,945 202,669,133
Balance of undistributed net investment income 856,452 536,314 558,022
Accumulated net realized gain (loss)
from investment transactions (74,836) (2,570,325) (3,102,461)
Net unrealized appreciation of investments 26,397,014 19,712,035 9,063,326
------------ ------------ ------------
Net assets $362,317,652 $324,686,241 $320,330,929
============ ============ ============
Authorized shares:
Common Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited
============ ============ ============
</TABLE>
<PAGE>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which
include general obligation, escrowed and revenue
bonds. At December 31, 1996, the revenue sources by
municipal purpose for these investments, expressed
as a percent of total investments, were as follows:
<TABLE>
<CAPTION>
NQF NUF NFL
<S> <C> <C> <C>
Revenue Bonds:
Transportation 6% 20% 18%
Water / Sewer Facilities 5 4 20
Housing Facilities 17 9 6
Health Care Facilities 12 12 8
Electric Utilities 9 3 12
Pollution Control Facilities 3 11 --
Lease Rental Facilities 4 2 --
Educational Facilities -- 3 --
Other 7 9 18
General Obligation Bonds 11 9 7
Escrowed Bonds 26 18 11
----- ----- -----
100% 100% 100%
===== ===== =====
</TABLE>
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 (61% for NQF, 62% 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.
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.
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<CAPTION>
Selected data for a Common share outstanding throughout each period is as
follows:
<PAGE>
Dividends from tax-exempt
Operating performance net investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income ments shareholders shareholders+
NQF
<S> <C> <C> <C> <C> <C>
Six mos. ended
12/31/96 $15.250 $ .608 $ .346 $ (.483) $(.101)
Year Ended 6/30,
1996 15.450 1.224 (.177) (.988) (.254)
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 mos. ended
12/31/96 15.260 .590 .388 (.462) (.116)
Year Ended 6/30,
1996 15.290 1.179 (.008) (.926) (.275)
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)
<CAPTION>
NFL
<S> <C> <C> <C> <C> <C>
Six mos. ended
12/31/96 14.100 .510 .545 (.390) (.115)
Year Ended 6/30,
1996 13.890 1.030 .223 (.780) (.263)
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
Per
Organization Common
and offering share
costs and market
To To Preferred share Net asset value
Common Preferred underwriting value end end of
shareholders shareholders+ discounts of period period
<S> <C> <C> <C> <C> <C>
NQF
Six mos. ended
12/31/96 $ -- $ -- $ -- $15.620 $16.125
Year Ended 6/30,
1996 (.004) (.001) -- 15.250 16.125
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 mos. ended
12/31/96 -- -- -- 15.660 15.500
Year Ended 6/30,
1996 -- -- -- 15.260 15.000
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
<CAPTION>
NFL
<S> <C> <C> <C> <C> <C>
Six mos. ended
12/31/96 -- -- -- $14.650 13.250
Year Ended 6/30,
1996 -- -- -- 14.100 13.500
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
value** value** thousands) net assets++ net assets++ rate
<S> <C> <C> <C> <C> <C> <C>
NQF
Six mos. ended
12/31/96 3.03% 5.65% $362,318 .80%* 5.41%* 2%
Year Ended 6/30,
1996 11.60 5.19 355,708 .80 5.47 20
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 mos. ended
12/31/96 6.49 5.71 324,686 .81* 5.09* 6
Year Ended 6/30,
1996 8.08 5.94 319,015 .82 5.14 19
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* --
<CAPTION>
NFL
<S> <C> <C> <C> <C> <C> <C>
Six mos. ended
12/31/96 1.03 6.73 320,331 .81* 4.57* 8
Year Ended 6/30,
1996 12.22 7.15 312,553 .81 4.66 26
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.
** 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.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to
Preferred shareholders.
</FN>
</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.
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
FSA-1-12.96
