NUVEEN Exchange-Traded Funds
JUNE 30, 1999
ANNUAL REPORT
DEPENDABLE, TAX-FREE INCOME TO HELP YOU KEEP MORE OF WHAT YOU EARN.
NQF
NUF
NFL
Florida
Photo of: People walking along beach.
<PAGE>
Highlights
As of June 30, 1999
CONTENTS
1 Dear Shareholder
3 Portfolio Manager's Comments
6 NQF Performance Overview
7 NUF Performance Overview
8 NFL Performance Overview
9 Report of Independent Auditors
10 Portfolio of Investments
22 Statement of Net Assets
23 Statement of Operations
24 Statement of Changes in Net Assets
26 Notes to Financial Statements
30 Financial Highlights
32 Build Your Wealth Automatically
33 Fund Information
CREDIT QUALITY PERFORMANCE HIGHLIGHTS
Nuveen Florida Investment Quality Municipal Fund (NQF)
o Outperformed the one-year total return of its
Lipper Peer Group *
o Taxable-equivalent yield on share price of 8.59% **
Pie Chart:
AAA/U.S. Guaranteed 82%
AA 11%
A 1%
BBB/NR 6%
Nuveen Florida Quality Income Municipal Fund (NUF)
o Outperformed the one-year total return of its
Lipper Peer Group*
o Taxable-equivalent yield on share price of 8.39% **
Pie Chart:
AAA/U.S. Guaranteed 72%
AA 16%
A 6%
BBB/NR 6%
Nuveen Insured Florida Premium Income Municipal Fund (NFL)
o Increased its dividend in May 1999
o Taxable-equivalent yield on share price of 7.94% **
Pie Chart:
Insured 84%
Insured and U.S. Guaranteed 16%
* The Lipper Peer Group return represents the average annualized returns of the
funds in the Lipper Florida Municipal Debt category. The return assumes
reinvestment of dividends and does not reflect any applicable sales charge.
** For investors in the 31% federal income tax bracket. See your fund's
Performance Overview in this report for more information.
<PAGE>
Photo of: TIMOTHY R. SCHWERTFEGER
CHAIRMAN OF THE BOARD
SIDEBAR TEXT: WEALTH TAKES A LIFETIME TO BUILD. ONCE ACHIEVED, IT SHOULD BE
PRESERVED.
Dear Shareholder
It is my pleasure to inform you about the performance of your Nuveen
Exchange-Traded Fund. Providing an attractive tax-free dividend is the Fund's
main objective, and your Fund achieved this goal, especially when compared to a
taxable investment. During the period covered by this report, we have seen some
shifts in U.S. economic trends and the fixed-income market in which your Nuveen
Exchange-Traded Fund operates. I appreciate the opportunity to discuss these
changes with you, as does the portfolio manager of your fund, who will discuss
fund performance later in this report.
A CHALLENGING INVESTMENT ENVIRONMENT
Over the past 12 months, the U.S. economy has continued to be characterized by
robust growth, generally low interest rates, and unemployment levels that remain
among the lowest in three decades. However, concerns about the continued
persistent pace of the economy's expansion have tested the new paradigm that
holds that improvements in productivity enable us to have both economic growth
and low inflation at the same time. With investors and the various markets
watching - and reacting to - every announcement concerning economic statistics,
volatility has increased, especially in the equity markets.
In an effort to pre-empt the threat of inflation, the Federal Reserve moved to
raise interest rates by a quarter-point - to 5.0% - at the end of June. This
upward adjustment to the federal funds rate, which represents the amount banks
charge one another on overnight loans, marks the first increase since March 1997
and stands in sharp contrast to the three reductions made last fall. Despite
this minimal increase and the Fed's announcement that it would shift to a
neutral bias concerning future interest rate actions, uncertainty about the
board's next move - which was not diminished by Chairman Greenspan's
Congressional testimony in late July continues.
MUNICIPAL BOND PERFORMANCE
Over the past year, our exchange-traded municipal bond funds continued to offer
attractive, stable income in a market that places a high premium on yield. At
the end of June 1999, the ratio between long-term municipal yields and 30-year
Treasury yields stood at 94%, compared with the historical average of 86% over
the period 1986-1999. For investors, this meant that quality long-term municipal
bonds offered yields comparable to those of long Treasury bonds - even before
the tax advantages of municipals were taken into account. On an after-tax basis,
municipal bonds continued to present an exceptionally attractive investment
option relative to Treasuries.
In the coming months, we expect to see a healthy supply of new municipal bonds,
although total volume is expected to drop from the near-record levels of 1998.
This is due to the dramatic decrease in the refunding of existing bonds in the
wake of higher interest rates compared to last June. To date, municipal supply
has declined by approximately 25% from the levels of a year ago. This, in turn,
enhances the attractiveness of the municipal bonds that are brought to market,
as demand - especially from individual investors - remains strong. We anticipate
that this demand will continue to strengthen as investors increasingly look at
rebalancing their portfolios. With the outlook for tighter supply and continued
demand in the months ahead, Nuveen's established market position as the leading
sponsor of exchange-traded municipal bond funds ensures that we will have
exceptional access to the bond offerings that have the potential to add value
for our shareholders.
A BALANCED PORTFOLIO: ENHANCED GROWTH WITH REDUCED RISK
Like most investors in the marketplace today, your tax-free investing goal is to
capture high after-tax total returns while moderating risk. Using the
appropriate securities' indices and tax rates, Nuveen compared the hypothetical
investment performance of a balanced portfolio consisting of equities and
municipal bonds to that of a balanced portfolio consisting of equities and
taxable bonds.
Our research showed that for the last 20 years, the pairing of equities with
municipal bonds had provided both superior after-tax total returns and lower
levels of risk than the combination of equities and taxable bonds. Incorporating
even a 20% allocation of municipal bonds into an all-equity portfolio cut risk
substantially, with only a small reduction in after-tax total return. Purchasing
shares of a Nuveen Exchange-Traded Municipal Bond Fund provides an easy way to
incorporate the benefits of municipal bonds into a balanced portfolio.
NUVEEN FUNDS: AN ANSWER TO YOUR INVESTMENT NEEDS
In light of the recent shifts in the economic environment, your financial
adviser can serve as a valuable resource in helping you determine if adjustments
are needed in your current asset allocation plan. As part of this process, your
adviser can set up a reinvestment plan designed to purchase additional shares of
your Nuveen Exchange-Traded Fund. Additionally, your financial adviser can help
you invest in other Nuveen funds to give you the proper exposure to different
types of investments needed to enhance your potential for success.
For more information on any of Nuveen's funds, contact your financial adviser
for a prospectus, or call Nuveen at (800) 621-7227. Please read the prospectus
carefully before you invest or send money.
Since 1898, Nuveen has been synonymous with investments that stand the test of
time. As we look ahead to the new millennium, we are committed to maintaining
that reputation and finding the best ways to serve your evolving investment
needs. Thank you for your continued confidence.
Sincerely,
/s/ TIMOTHY R. SCHWERTFEGER
TIMOTHY R. SCHWERTFEGER
Chairman of the Board
August 16, 1999
SIDEBAR TEXT: "PURCHASING SHARES OF A NUVEEN EXCHANGE-TRADED MUNICIPAL BOND
FUND PROVIDES AN EASY WAY TO INCORPORATE THE BENEFITS OF MUNICIPAL BONDS INTO A
BALANCED PORTFOLIO."
<PAGE>
Nuveen Florida Exchange-Traded Funds
Portfolio Manager's Comments
PORTFOLIO MANAGER TOM O'SHAUGHNESSY TALKS ABOUT THE FLORIDA MUNICIPAL MARKET,
RECENT FUND PERFORMANCE, AND THE OUTLOOK FOR THE NUVEEN FLORIDA EXCHANGE-TRADED
FUNDS. A 16-YEAR VETERAN OF NUVEEN, TOM HAS MANAGED THE NUVEEN FLORIDA
INVESTMENT QUALITY MUNICIPAL FUND (NQF) AND THE NUVEEN FLORIDA QUALITY INCOME
MUNICIPAL FUND (NUF) SINCE THEIR INCEPTIONS IN 1991. IN JULY 1998, HE RESUMED
PORTFOLIO MANAGEMENT RESPONSIBILITY FOR THE NUVEEN INSURED FLORIDA PREMIUM
INCOME MUNICIPAL FUND (NFL), WHICH HE HAD PREVIOUSLY MANAGED FROM ITS INCEPTION
IN DECEMBER 1992 THROUGH JANUARY 1995.
WHAT FACTORS CONTRIBUTED TO THE PERFORMANCE OF THE FLORIDA MUNICIPAL MARKET
DURING THE PAST 12 MONTHS?
As one of the country's fastest growing states, Florida boasts a strong state
economy. Both employment and income growth have outperformed regional and
national averages over the past year, although per capita income ranks just
below the national average. Unemployment in the state was 3.9% in June 1999,
down from 4.3% in June 1998 and below the current national average of 4.3%.
Another positive indicator for the Florida economy is that it is now
diversifying beyond its traditional base in tourism and agriculture into the
growing services sector. In addition, continued population growth means that the
state will have an ongoing need for construction of housing, schools, hospitals,
and other municipal projects.
Unlike the national market, the Florida municipal market enjoyed stable new
issue supply over the past year. A comparison for the past 12 months ended June
30, 1999, showed that new state supply fell less than 1%, compared with a 9%
drop in the national supply during this period. In the last six months, however,
Florida's municipal supply was off 14%, while the nationwide supply declined
23%. This year's tighter supply scenario was ameliorated by the actions of
arbitrageurs who trade between the municipal and U.S. Treasury markets in an
attempt to capture pricing differences between the two markets. Arbitrageurs
find the Florida municipal market particularly attractive due to its well-known
issuers, large volume, and high quality paper. As municipals outperformed
Treasuries during the first half of 1999, the arbitrageurs sold municipal bonds
to lock in their profits, increasing the number of these bonds in the market
place. With arbitrage accounts typically trading in blocks of $10 million or
more, Nuveen's significant position in the Florida municipal market enabled us
to negotiate favorable prices and take advantage of these purchase
opportunities. Although Florida has no state income tax, the intangibles tax,
which is applied to income earned on non-Florida investments, keeps demand for
in-state municipal bonds strong.
HOW DID THE NUVEEN FLORIDA EXCHANGE-TRADED FUNDS PERFORM IN THIS ENVIRONMENT?
For the 12 months ended June 30, 1999, the Nuveen Florida funds produced total
returns on net asset value (NAV) ranging from 0.73% to 2.22%, providing
taxable-equivalent total returns of 2.99% to 5.05% for shareholders in the 31%
federal income tax bracket, as shown in the accompanying table. For comparison
purposes, the annual total returns for the Funds' benchmarks - the Lehman
Brothers Municipal Bond Index or the Lehman Insured Municipal Bond Index(1) -
and the average total return for the Lipper Florida Municipal Debt category(2)
are also provided.
LIPPER FLORIDA
LEHMAN AVERAGE
TOTAL RETURN ON NAV TOTAL RETURN TOTAL RETURN
1-Year Ended Taxable- 1-Year Ended 1-Year Ended
6/30/99 Equivalent(3) 6/30/99 6/30/99
- ------------------------------------------------------------------
NQF 2.22% 5.05% 2.77% 0.89%
- ------------------------------------------------------------------
NUF 1.88% 4.48% 2.77% 0.89%
- ------------------------------------------------------------------
NFL 0.73% 2.99% 2.49% 0.89%
- ------------------------------------------------------------------
The Funds' relative total return on NAV underperformance, when compared to the
appropriate Lehman index, can be traced to their Fund durations4. Duration
measures a bond fund's price volatility, or reaction to interest rate movements.
The longer the duration, the more sensitive the fund's NAV is to changes in
interest rates. During a period of falling interest rates, longer duration
enables a fund's NAV to participate more fully in market gains. However, when
interest rates rise, longer duration can make the fund's NAV more vulnerable to
price declines. From June 30, 1998 to June 30, 1999, the Bond Buyer Revenue Bond
Index rose from 5.36% to 5.62%. The following chart illustrates the fund
durations as well as the durations of the appropriate Lehman index.
<PAGE>
LEHMAN LEHMAN
BROTHERS BROTHERS
FUND MUNICIPAL INSURED MUNICIPAL
DURATIONS BOND INDEX BOND INDEX
- -----------------------------------------------------
NQF 8.54 7.21 N/A
- -----------------------------------------------------
NUF 8.17 7.21 N/A
- -----------------------------------------------------
NFL 12.42 N/A 8.43
- -----------------------------------------------------
Over the past year, active demand for NFL - bolstered by the Fund's recent
dividend increases - resulted in solid share price performance. The other two
funds, however, experienced a decline in share price. At the same time, the
prevailing interest rate environment, which was generally higher than that of
June 1998, led to a decline in the NAVs of all three funds. As a result of these
factors, NFL's discount (share price below NAV) narrowed by more than 6% over
the past 12 months. Both NQF and NUF continued to trade at premiums (share price
above NAV).
CURRENT PREMIUM/ TOTAL RETURN
MARKET YIELD DISCOUNT(5) ON SHARE PRICE
- --------------------------------------------------------------------------------
TAXABLE- 1-YEAR ENDED TAXABLE-
6/30/99 EQUIVALENT(3) 6/30/98 6/30/99 6/30/99 EQUIVALENT(3)
- --------------------------------------------------------------------------------
NQF 5.93% 8.59% 10.15% 6.45% -1.80% 0.77%
- --------------------------------------------------------------------------------
NUF 5.79% 8.39% 1.44% 2.47% 2.79% 5.35%
- --------------------------------------------------------------------------------
NFL 5.48% 7.94% -8.39% -2.02% 7.98% 10.46%
- --------------------------------------------------------------------------------
For additional information, see the individual Performance Overview for your
fund in this report.
HOW WERE THE FUNDS' DIVIDENDS AFFECTED?
During the past 12 months, good call protection helped support the dividend of
NFL and shield the income of this fund from erosion. In addition, excellent
dividend management strategies, including the prudent use of leverage, enabled
us to make two increases to NFL's dividend effective February and May 1999. In
May 1999, income earned through these strategies also allowed us to increase the
dividend of NUF, which had undergone a dividend cut nine months earlier. For
NQF, however, the income-eroding effect of a small number of bond calls led to a
dividend reduction in November 1998. Even with this single dividend adjustment,
NQF continued to provide an extremely attractive market yield.
As leveraged funds, the Nuveen Florida funds issue preferred shares that pay
short-term interest rates to investors seeking short-term liquidity. The
proceeds from the preferred shares are used to buy additional long-term bonds
for the Funds' portfolios. When short-term interest rates remain below long-term
rates, common shareholders can potentially earn extra income from the difference
between the rate earned on the Fund's long-term portfolio and the short-term
rate paid to preferred shareholders.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN FLORIDA FUNDS DURING THE PAST
12 MONTHS?
The focus of our management strategies over the past year was on taking
advantage of opportunities to purchase well-structured bonds that added yield to
the portfolio. Nuveen Research, which is instrumental in helping us identify the
bonds that we believe will add value to our portfolios, also assists us in
monitoring events in the municipal market and analyzing the effect of those
events on national as well as individual state markets.
For example, when the Philadelphia-based hospitals of the Allegheny Health
Education and Research Foundation (AHERF) declared bankruptcy last year, the
impact was most pronounced in the healthcare sector of the Pennsylvania
municipal market. However, the ramifications of the event were still felt, to a
lesser extent, throughout the municipal market, as the uncertainty created by
the situation prompted investors across the country to demand higher yields for
lower-rated issues. This caused the yield spread, or the difference between
higher credit quality securities and those of lower credit quality, to widen.
Prior to the AHERF bankruptcy, this spread had been relatively narrow,
suggesting that investors were not being adequately compensated for taking on
additional credit risk.
As spreads have widened, lower-rated securities have become more attractive on a
risk-adjusted basis. With interest rates at a higher level, and the widening
differential among credit sectors, we took the opportunity to investigate
lower-rated issues. Using the expertise of Nuveen Research, we were able to
discover bonds that offered adequate compensation for their risk level before
making any purchases for the Funds.
For instance, we worked with Nuveen Research to devise a proprietary method of
identifying undervalued credits, such as non-rated multifamily housing bonds,
that have the potential for higher yields. These situations generally require a
great amount of intensive research, which is one of Nuveen's strengths. Another
one of our strengths is the good working relationship we enjoy with the various
parties involved in the municipal market, which means that a larger number of
deals are brought to Nuveen's attention. We can then negotiate directly with
issuers to structure offerings that meet Nuveen's strict criteria and are
mutually beneficial for all parties. In one particular housing deal, we worked
with the issuer to include a 10-year refinancing provision that helps control
call risk. Over the past year, we added a sizable block of these non-rated
multifamily housing bonds to NUF, increasing the Fund's portfolio allocation to
this sector from 4.0% in June 1998 to 8.4% in June 1999. Our plans call for
continued work on offerings like this for NUF as well as NQF. As with the
arbitrage accounts mentioned earlier, these types of deals can add value but are
not generally available to individual investors, providing a competitive
advantage for Nuveen funds and their shareholders.
In NQF, we also took advantage of the good supply of airport paper in the
Florida market, which offered attractive income, to increase the Fund's
portfolio allocation to the transportation sector from 8.8% in June 1998 to
16.6% this June. Over the past year, successful bond selection and management
strategies enabled us to meet our goal of increasing NFL's income despite the
fact that, as an insured fund, NFL had a smaller universe of bonds from which to
choose.
Overall, the Funds continued to offer excellent credit quality. At the end of
June 1999, NQF and NUF had 93% and 88% of their portfolios, respectively,
invested in bonds rated AAA and AA. Each fund also had a 6% allocation of BBB
and non-rated bonds, which generally provide enhanced levels of yield. Credit
quality is not an issue for NFL, which, as an insured fund, is 100% invested in
insured or U.S. guaranteed bonds.
In the area of bond calls, NFL currently offers very good levels of call
protection, with only 1% of its portfolio subject to calls prior to 2002. This
should provide additional protection for the Fund's dividend over this period.
As NQF and NUF, which were assembled in 1991, approach the 10-year mark, they
are also approaching the normal part of the bond market cycle when bond calls
are more likely to occur. Over the next 3 1/2 years, approximately half of the
bonds in these two portfolios will be subject to calls, including a number of
pre-refunded bonds that will be called in 2001 and 2002. To minimize the effect
of these calls, we are already at work on strategies for managing through this
period. Currently, we plan to hold high-yielding bonds for as long as possible
to maximize income. We call these bonds "museum pieces" due to their high yields
and good quality, which place them at a premium and make them very valuable in
today's market. As these bonds approach their call dates, we will look at
selling selected bonds and reinvesting the proceeds into bonds that have the
potential to support the Funds' dividends and enhance portfolio structure.
Beginning in 2003, both NQF and NUF will again offer good levels of protection.
WHAT IS NUVEEN'S OUTLOOK FOR THESE FUNDS?
Looking ahead, our focus in all three funds will remain on supporting the income
stream of these funds at the highest levels consistent with capital
preservation. From a sector perspective, we plan to keep our healthcare exposure
at current levels, while concentrating our holdings in fewer names to enhance
efficiency and ensure proper research coverage. Although we will continue to
watch all sectors for market opportunities, our current plans call for continued
increases in our exposure to the multifamily housing sector to take advantage of
situations that offer higher yields.
These strategies demonstrate the value that can be added by an active bond
manager such as Nuveen. As an experienced investment manager knowledgeable about
the unique aspects of the Florida municipal market, we are in the marketplace
every day, monitoring market dynamics, looking for opportunities, and
capitalizing on them to the benefit of shareholders.
1 NQF and NUF are compared with the Lehman Brothers Municipal Bond Index, an
unleveraged index comprising a broad range of investment-grade municipal
bonds. NFL, which is insured, is compared with the Lehman Brothers Insured
Municipal Bond Index, an unleveraged index covering a broad range of insured
municipal bonds. Results for both Lehman indexes do not reflect any initial or
ongoing expenses.
2 The Lipper Florida Peer Group return represents the average annualized returns
of the 14 funds in the Lipper Florida Municipal Debt category. The return
assumes reinvestment of dividends and does not reflect any applicable sales
charges.
3 Taxable-equivalent total return represents the return on a taxable investment
necessary to equal the return of the Nuveen fund on an after-tax basis.
Taxable-equivalent total return is based on the annualized total return and a
federal income tax rate of 31%.
4 Fund duration, also known as leverage-adjusted duration, takes into account
the leveraging process for each fund and therefore differs from the duration
of the actual portfolio of individual bonds that make up the Fund. Unless
otherwise noted, references to duration in this commentary are intended to
indicate fund duration.
5 A fund's premium or discount represents the percentage difference between the
Fund's share price and its NAV.
<PAGE>
Nuveen Florida Investment Quality Municipal Fund
Performance Overview
As of June 30, 1999
NQF
PORTFOLIO STATISTICS
Inception Date 2/91
- --------------------------------------------------
Share Price $16
- --------------------------------------------------
Net Asset Value $15.03
- --------------------------------------------------
Market Yield 5.93%
- --------------------------------------------------
Taxable-Equivalent Yield(1) 8.59%
- --------------------------------------------------
Fund Net Assets ($000) $355,644
- --------------------------------------------------
Effective Maturity (Years) 16.79
- --------------------------------------------------
Leverage-Adjusted Duration 8.54
- --------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year -1.80% 2.22%
- --------------------------------------------------
5-Year 7.56% 6.58%
- --------------------------------------------------
Since Inception 7.09% 7.47%
- --------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN(1)
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 0.77% 5.05%
- --------------------------------------------------
5-Year 10.37% 9.52%
- --------------------------------------------------
Since Inception 9.89% 10.40%
- --------------------------------------------------
TOP 5 SECTORS (AS A % OF TOTAL INVESTMENTS)
U.S. Guaranteed 30%
- --------------------------------------------------
Transportation 17%
- --------------------------------------------------
Housing/Single Family 15%
- --------------------------------------------------
Utilities 11%
- --------------------------------------------------
Healthcare 9%
- --------------------------------------------------
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share(2)
7/98 0.082
8/98 0.082
9/98 0.082
10/98 0.082
11/98 0.079
12/98 0.079
1/99 0.079
2/99 0.079
3/99 0.079
4/99 0.079
5/99 0.079
6/99 0.079
Line Chart:
Share Price Performance
7/2/98 17.438
17.5
17.563
17.5
17.438
17.438
17.438
17.75
17.875
17.375
17.375
17.313
17.688
18.25
18.188
18.5
18.25
18
17.44
17.25
17.25
17.31
17.63
17.75
17.81
17.06
16.63
16.5
16.88
17
16.88
17.06
17.06
17
17.06
17.38
17.25
17.25
17.25
17.25
17.25
17.13
16.75
16.69
16.56
16.19
15.94
15.94
15.69
6/30/99 16
Weekly Closing Price
Past performance is not predictive of future results.
1 A taxable-equivalent represents the yield or return on a taxable investment
necessary to equal that of the Nuveen fund on an after-tax basis.
Taxable-equivalent yield is based on the market yield and a federal income tax
rate of 31%. Taxable-equivalent total return is based on the annualized total
return and a federal income tax rate of 31%.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December of $0.0248 per share.
<PAGE>
Nuveen Florida Quality Income Municipal Fund
Performance Overview
As of June 30, 1999
NUF
PORTFOLIO STATISTICS
Inception Date 10/91
- --------------------------------------------------
Share Price $15 3/4
- --------------------------------------------------
Net Asset Value $15.37
- --------------------------------------------------
Market Yield 5.79%
- --------------------------------------------------
Taxable-Equivalent Yield(1) 8.39%
- --------------------------------------------------
Fund Net Assets ($000) $322,433
- --------------------------------------------------
Effective Maturity (Years) 17.18
- --------------------------------------------------
Leverage-Adjusted Duration 8.17
- --------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 2.79% 1.88%
- --------------------------------------------------
5-Year 8.68% 7.07%
- --------------------------------------------------
Since Inception 6.78% 7.34%
- --------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN(1)
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 5.35% 4.48%
- --------------------------------------------------
5-Year 11.49% 9.84%
- --------------------------------------------------
Since Inception 9.55% 10.11%
- --------------------------------------------------
TOP 5 SECTORS (AS A % OF TOTAL INVESTMENTS)
U.S. Guaranteed 25%
- --------------------------------------------------
Transportation 17%
- --------------------------------------------------
Utilities 17%
- --------------------------------------------------
Housing/Single Family 9%
- --------------------------------------------------
Housing/Multifamily 8%
- --------------------------------------------------
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share
7/98 0.077
8/98 0.0745
9/98 0.0745
10/98 0.0745
11/98 0.0745
12/98 0.0745
1/99 0.0745
2/99 0.0745
3/99 0.0745
4/99 0.0745
5/99 0.076
6/99 0.076
Line Chart:
Share Price Performance
7/2/98 16.375
16.313
16.5
16.438
16.375
16.188
16.313
16.25
16.313
16.25
16.188
16.25
16.25
16.938
17
16.875
16.88
16.94
17.06
16.63
16.88
17.25
17.31
17.19
17.31
16.38
15.81
15.56
15.75
16.06
15.88
16.13
16.19
16.19
16.06
16.13
16.19
16.25
16.31
16.25
16.25
16.44
16.06
16
16
16
15.94
15.88
15.88
6/30/99 15.75
Weekly Closing Price
Past performance is not predictive of future results.
1 A taxable-equivalent represents the yield or return on a taxable investment
necessary to equal that of the Nuveen fund on an after-tax basis.
Taxable-equivalent yield is based on the market yield and a federal income tax
rate of 31%. Taxable-equivalent total return is based on the annualized total
return and a federal income tax rate of 31%.
<PAGE>
Nuveen Insured Florida Premium Income Municipal Fund
Performance Overview
As of June 30, 1999
NFL
PORTFOLIO STATISTICS
Inception Date 12/92
- --------------------------------------------------
Share Price $14 9/16
- --------------------------------------------------
Net Asset Value $14.86
- --------------------------------------------------
Market Yield 5.48%
- --------------------------------------------------
Taxable-Equivalent Yield(1) 7.94%
- --------------------------------------------------
Fund Net Assets ($000) $323,428
- --------------------------------------------------
Effective Maturity (Years) 17.70
- --------------------------------------------------
Leverage-Adjusted Duration 12.42
- --------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 7.98% 0.73%
- --------------------------------------------------
5-Year 8.46% 8.20%
- --------------------------------------------------
Since Inception 5.17% 6.29%
- --------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN(1)
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 10.46% 2.99%
- --------------------------------------------------
5-Year 11.13% 10.72%
- --------------------------------------------------
Since Inception 7.72% 8.75%
- --------------------------------------------------
TOP 5 SECTORS (AS A % OF TOTAL INVESTMENTS)
Transportation 18%
- --------------------------------------------------
Tax Obligation/Limited 17%
- --------------------------------------------------
U.S. Guaranteed 16%
- --------------------------------------------------
Water and Sewer 13%
- --------------------------------------------------
Utilities 8%
- --------------------------------------------------
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share
7/98 0.0625
8/98 0.0625
9/98 0.0625
10/98 0.0625
11/98 0.0625
12/98 0.0625
1/99 0.0625
2/99 0.0645
3/99 0.0645
4/99 0.0645
5/99 0.0665
6/99 0.0665
Line Chart:
Share Price Performance
7/2/98 16.375
16.313
16.5
16.438
16.375
16.188
16.313
16.25
16.313
16.25
16.188
16.25
16.25
16.938
17
16.875
16.88
16.94
17.06
16.63
16.88
17.25
17.31
17.19
17.31
16.38
15.81
15.56
15.75
16.06
15.88
16.13
16.19
16.19
16.06
16.13
16.19
16.25
16.31
16.25
16.25
16.44
16.06
16
16
16
15.94
15.88
15.88
6/30/99 15.75
Weekly Closing Price
Past performance is not predictive of future results.
1 A taxable-equivalent represents the yield or return on a taxable investment
necessary to equal that of the Nuveen fund on an after-tax basis. Taxable
equivalent yield is based on the market yield and a federal income tax rate of
31%. Taxable equivalent total return is based on the annualized total return
and a federal income tax rate of 31%.
<PAGE>
REPORT OF INDEPENDENT AUDITORS
THE BOARDS OF TRUSTEES AND SHAREHOLDERS
NUVEEN FLORIDA INVESTMENT QUALITY MUNICIPAL FUND
NUVEEN FLORIDA QUALITY INCOME MUNICIPAL FUND
NUVEEN INSURED FLORIDA PREMIUM INCOME MUNICIPAL FUND
We have audited the accompanying statements of net assets, including the
portfolios of investments, of Nuveen Florida Investment Quality Municipal Fund,
Nuveen Florida Quality Income Municipal Fund and Nuveen Insured Florida Premium
Income Municipal Fund as of June 30, 1999, and the related statements of
operations, changes in net assets and the financial highlights for the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of June
30, 1999, by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Nuveen
Florida Investment Quality Municipal Fund, Nuveen Florida Quality Income
Municipal Fund and Nuveen Insured Florida Premium Income Municipal Fund as of
June 30, 1999, the results of their operations, changes in their net assets and
financial highlights for the periods indicated therein in conformity with
generally accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
August 13, 1999
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN FLORIDA INVESTMENT QUALITY MUNICIPAL FUND (NQF)
JUNE 30, 1999
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,500,000 The Cape Canaveral Hospital District, Revenue Refunding Certificates, 1/08 at 101 BBB $1,366,245
Series 1998, 5.250%, 1/01/28
11,000,000 Jacksonville Health Facilities Authority, Florida, Hospital Facilities 11/01 at 102 AA+ 11,802,670
Refunding Revenue Bonds, Series 1991 (St. Luke's Hospital Association
Project), 7.125%, 11/15/20
7,500,000 City of Miami Beach Health Facilities Authority, Hospital Revenue Bonds, 11/08 at 101 BBB 6,953,025
Series 1998 (Mount Sinai Medical Center of Florida Project),
5.375%, 11/15/28
7,925,000 Adventist Health System/Sunbelt, Inc., Orange County, Florida, Health 11/01 at 102 AAA 8,484,743
Facilities Authority, Hospital Revenue Bonds, Series 1991-B,
6.750%, 11/15/21
4,250,000 St. John's County Industrial Development Authority, Hospital 8/02 at 102 A2 4,345,753
Revenue Bonds (Flagler Hospital Project), Series 1992,
6.000%, 8/01/22
- ---------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.5%
11,300,000 Housing Finance Authority of Broward County, Florida, Multifamily 7/09 at 102 N/R 11,327,233
Housing Revenue Bonds (The Pier Club Apartments Project),
Series 1999, 7.000%, 7/01/34
1,890,000 Florida Housing Finance Agency, General Mortgage Revenue Refunding 6/02 at 103 AAA 1,995,708
Bonds, 1992 Series A, 6.400%, 6/01/24
2,500,000 Florida Housing Finance Agency, Housing Revenue Bonds, 9/06 at 102 AAA 2,664,925
1996 Series K-1 (Mariner Club Apartments Project),
6.375%, 9/01/36 (Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 14.8%
6,845,000 Housing Finance Authority of Brevard County, Single Family 9/01 at 102 Aaa 7,167,536
Mortgage Revenue Refunding Bonds, 1991 Series C,
7.000%, 9/01/23
4,115,000 Housing Finance Authority of Broward County (Florida), GNMA and 3/01 at 102 AAA 4,290,793
FNMA Collateralized Home Mortgage Revenue Bonds,
1991 Series A, 7.350%, 3/01/23 (Alternative Minimum Tax)
1,085,000 Housing Finance Authority of Clay County (Florida), Single Family 4/07 at 102 Aaa 1,123,854
Mortgage Revenue Bonds, Series 1997 (Multi-County Program),
5.950%, 10/01/19 (Alternative Minimum Tax)
1,170,000 Housing Finance Authority of Dade County (Florida), Single Family 9/00 at 102 Aaa 1,212,459
Mortgage Revenue Bonds, 1990 Series C, 7.750%, 9/01/22
(Alternative Minimum Tax)
700,000 Housing Finance Authority of Dade County (Florida), Single Family 3/01 at 102 Aaa 728,231
Mortgage Revenue Bonds, Series B, 7.250%, 9/01/23
(Alternative Minimum Tax)
335,000 Housing Finance Authority of Dade County (Florida), Single Family 4/05 at 102 AAA 349,432
Mortgage Revenue Bonds, Series 1995, 6.550%, 10/01/27
(Alternative Minimum Tax)
2,500,000 Housing Finance Authority of Escambia County (Florida), Single Family 4/07 at 102 Aaa 2,433,200
Mortgage Revenue Bonds, 1998 Series A (Multi-County Program),
5.300%, 10/01/19 (Alternative Minimum Tax)
10,015,000 Florida Housing Finance Agency, Homeowner Mortgage Revenue 1/06 at 102 AA 10,458,364
Bonds, 1995 Series 2 (Refunding/New Money Issue),
6.200%, 7/01/27 (Alternative Minimum Tax)
1,900,000 Florida Housing Finance Agency, Homeowner Mortgage Revenue 1/07 at 102 AA 2,008,205
Bonds, Series 2 (Refunding/New Money Issue), 6.350%, 7/01/28
(Alternative Minimum Tax)
3,065,000 Florida Housing Finance Agency, Homeowner Mortgage Revenue 7/07 at 102 AAA 3,175,064
Bonds, 1997 Series 2, 5.900%, 7/01/29 (Alternative Minimum Tax)
2,835,000 Housing Finance Authority of Leon County (Florida), Single 4/01 at 102 Aaa 2,947,635
Family Mortgage Revenue Bonds, 1991 Series A (Multi-County
Program), 7.300%, 4/01/21 (Alternative Minimum Tax)
2,360,000 Housing Finance Authority of Manatee County (Florida), Single 11/05 at 102 Aaa 2,608,390
Family Mortgage Revenue Bonds, Series 1994, Sub Series 3,
7.600%, 11/01/26 (Alternative Minimum Tax)
1,905,000 Housing Finance Authority of Manatee County (Florida), Single 5/06 at 105 Aaa 2,135,010
Family Mortgage Revenue Bonds, Series 1996, Sub Series 1,
7.450%, 5/01/27 (Alternative Minimum Tax)
Housing Finance Authority of Orange County, GNMA Collateralized
Mortgage Revenue Bonds, 1991 Series A:
2,655,000 7.250%, 9/01/11 (Alternative Minimum Tax) 3/01 at 103 AAA 2,783,608
8,810,000 7.375%, 9/01/24 (Alternative Minimum Tax) 3/01 at 103 AAA 9,255,434
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAX OBLIGATION/GENERAL - 1.0%
$ 2,810,000 Broward County, Florida, Public Improvement Refunding Bonds, No Opt. Call AA $3,702,287
Series 1986 (General Obligation Bonds), 12.500%, 1/01/04
- ---------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 7.7%
18,315,000 Dade County, Florida, Special Obligation and Refunding Bonds, 10/06 at 102 AAA 17,112,071
Series 1996B, 5.000%, 10/01/35
5,000,000 The County of Hernando, Florida (Criminal Justice Complex Financing No Opt. Call AAA 6,355,100
Program), 1986 Series, 7.650%, 7/01/16
Tampa Sports Authority, State of Florida Sales Tax, Special
Purpose Bonds (Tampa Bay Arena Project), Series 1995:
1,250,000 5.750%, 10/01/20 No Opt. Call AAA 1,325,225
2,585,000 5.750%, 10/01/25 No Opt. Call AAA 2,742,944
- ---------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 16.7%
Broward County, Florida, Airport System Revenue Bonds, Series G:
2,950,000 5.125%, 10/01/16 (Alternative Minimum Tax) 10/08 at 101 AAA 2,848,196
3,105,000 5.125%, 10/01/17 (Alternative Minimum Tax) 10/08 at 101 AAA 2,983,750
1,500,000 Dade County, Florida, Aviation Bonds, Series 1996A, 5.750%, 10/01/26 10/06 at 102 AAA 1,525,140
(Alternative Minimum Tax)
Greater Orlando Aviation Authority, Airport Facilities Revenue
Bonds, City of Orlando, Florida, Series 1997:
4,700,000 5.750%, 10/01/09 (Alternative Minimum Tax) No Opt. Call AAA 4,927,762
1,990,000 5.750%, 10/01/10 (Alternative Minimum Tax) No Opt. Call AAA 2,088,226
2,500,000 5.750%, 10/01/11 (Alternative Minimum Tax) No Opt. Call AAA 2,619,750
13,500,000 Greater Orlando Aviation Authority, Airport Facilities Revenue 10/09 at 101 AAA 12,832,425
Bonds, City of Orlando, Florida, Series 1999A, 5.125%, 10/01/28
(Alternative Minimum Tax)
2,590,000 Hillsborough County Aviation Authority, Florida, Tampa International 10/06 at 102 AAA 2,696,967
Airport Revenue Bonds, Series 1996A, 6.000%, 10/01/23
(Alternative Minimum Tax)
3,500,000 Hillsborough County Aviation Authority, Florida, Tampa International 10/06 at 102 AAA 3,633,700
Airport Revenue Bonds, Series 1996B, 5.875%, 10/01/23
4,780,000 Hillsborough County Aviation Authority, Florida, Tampa International No Opt. Call AAA 5,050,500
Airport Revenue Refunding Bonds, Series 1997A,
5.750%, 10/01/06 (Alternative Minimum Tax)
2,130,000 Hillsborough County Aviation Authority, Florida, Tampa International 10/99 at 102 AAA 2,191,280
Airport Revenue Refunding Bonds, Series 1991A, 6.900%, 10/01/11
15,450,000 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/08 at 101 AAA 14,341,926
Miami International Airport (Hub of the Americas), Series 1998C,
5.000%, 10/01/28 (Alternative Minimum Tax)
1,425,000 County of Volusia, Florida, Airport System Revenue Bonds, 10/00 at 102 AAA 1,498,587
Series 1991 (Daytona Beach Regional Airport),
7.000%, 10/01/21 (Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 30.1%
7,475,000 Certificates of Participation, Series 1991A, The School 7/01 at 102 AAA 7,970,069
Board of Broward County, Florida, 6.500%, 7/01/11
(Pre-refunded to 7/01/01)
3,000,000 The Cape Canaveral Hospital District, Improvement Revenue 1/01 at 102 AAA 3,179,970
Certificates, Series 1991, 6.875%, 1/01/21 (Pre-refunded to 1/01/01)
11,000,000 Charlotte County, Florida, Utility System Revenue Bonds, 10/01 at 102 AAA 11,905,740
Series 1991, 7.000%, 10/01/14 (Pre-refunded to 10/01/01)
2,395,000 Dade County, Florida, Special Obligation Bonds (Courthouse Center 4/04 at 102 A3*** 2,613,496
Project), Series 1994, 6.300%, 4/01/14 (Pre-refunded to 4/01/04)
7,225,000 Dade County, Florida, Special Obligation and Refunding Bonds, 10/08 at 48 27/32 AAA 2,234,115
Series 1996B, 0.000%, 10/01/20 (Pre-refunded to 10/01/08)
10,165,000 Florida Keys Aqueduct Authority, Water Revenue Refunding Bonds, 9/01 at 101 AAA 10,833,959
Series 1991, 6.750%, 9/01/21 (Pre-refunded to 9/01/01)
6,955,000 State of Florida, Full Faith and Credit, State Board of Education, 6/05 at 101 AAA 7,539,359
Public Education Capital Outlay Bonds, Series 1993F,
6.000%, 6/01/20 (Pre-refunded to 6/01/05)
950,000 City of Fort Myers, Florida, Improvement Revenue Bonds (Special 7/03 at 100 BBB-*** 1,042,359
Assessment Geographical Area No. 24 Improvements),
Series 1991A, 7.100%, 7/01/06 (Pre-refunded to 7/01/03)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GUARANTEED (continued)
$ 1,565,000 City of Green Cove Springs, Florida, Utilities Refunding Revenue Bonds, 10/01 at 102 AAA $1,685,521
Series 1991, 6.750%, 10/01/10 (Pre-refunded to 10/01/01)
3,530,000 Halifax Hospital Medical Center, Daytona Beach, Florida, Hospital 10/01 at 102 AAA 3,797,856
Revenue Refunding Bonds, Series 1991A, 6.750%, 10/01/06
(Pre-refunded to 10/01/01)
1,870,000 Hillsborough County Aviation Authority, Florida, Tampa International 10/99 at 102 AAA 1,923,800
Airport Revenue Refunding Bonds, Series 1991A, 6.900%, 10/01/11
(Pre-refunded to 10/01/99)
10,000,000 Jacksonville Electric Authority, Jacksonville, Florida, St. John's River 10/99 at 100 AA*** 10,065,700
Power Park System Special Obligation Bonds, First Crossover Series,
6.000%, 10/01/15 (Pre-refunded to 10/01/99)
11,000,000 Jacksonville Health Facilities Authority, Health Facilities Revenue 11/00 at 102 Aaa 11,748,220
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)
4,500,000 Orange County, Tourist Development Tax Revenue Bonds, 10/02 at 100 AAA 4,745,655
Series 1992B, 6.000%, 10/01/21 (Pre-refunded to 10/01/02)
1,400,000 City of Pembroke Pines, Florida, Capital Improvement Revenue 10/04 at 102 AAA 1,524,474
Bonds, Series 1995, 6.000%, 10/01/25 (Pre-refunded to 10/01/04)
5,000,000 St. Lucie County, Florida, Utility System Revenue Bonds, 10/00 at 102 AAA 5,309,850
Series 1990, 7.125%, 10/01/17 (Pre-refunded to 10/01/00)
4,000,000 City of St. Petersburg Health Facilities Authority, Florida, 12/01 at 102 AAA 4,332,600
Revenue Bonds, Series 1985A (Allegany Health System Loan
Program), 7.000%, 12/01/15 (Pre-refunded to 12/01/01)
4,500,000 City of Tampa, Florida, Revenue Bonds (The Florida Aquarium Project), 5/02 at 102 N/R*** 4,969,980
Series 1992, 7.750%, 5/01/27 (Pre-refunded to 5/01/02)
2,900,000 City of Tampa, Florida, Water and Sewer Systems Revenue Bonds, 10/02 at 101 AAA 3,083,657
Series 1992, 6.000%, 10/01/17 (Pre-refunded to 10/01/02)
475,000 County of Volusia, Florida, Airport System Revenue Bonds, 10/00 at 102 AAA 503,291
Series 1991 (Daytona Beach Regional Airport), 7.000%, 10/01/21
(Alternative Minimum Tax) (Pre-refunded to 10/01/00)
5,650,000 Certificates of Participation, School Board of Volusia County, Florida, 8/01 at 102 AAA 6,062,394
Master Lease Program, Series 1991, 6.750%, 8/01/11
(Pre-refunded to 8/01/01)
- ---------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.5%
435,000 City of Green Cove Springs, Florida, Utilities Refunding Revenue 10/01 at 102 AAA 464,354
Bonds, Series 1991, 6.750%, 10/01/10
4,250,000 City of Lakeland, Florida, Energy System Refunding Revenue Bonds, No Opt. Call AAA 4,624,255
Series 1999C, 6.050%, 10/01/11
Lee County, Florida, Solid Waste System Revenue Bonds, Series 1991A:
6,500,000 7.000%, 10/01/05 (Alternative Minimum Tax) 10/01 at 102 AAA 6,973,070
4,750,000 7.000%, 10/01/06 (Alternative Minimum Tax) 10/01 at 102 AAA 5,095,705
10,620,000 Martin County, Florida, Pollution Control Revenue Refunding Bonds 7/00 at 102 AAA 11,152,593
(Florida Power and Light Company Project), Series 1990,
7.300%, 7/01/20
7,460,000 Orlando Utilities Commission, Water and Electric Subordinated 10/99 at 100 Aa2 7,005,835
Revenue Bonds, Series 1989D, 5.000%, 10/01/23
5,250,000 Orlando Utilities Commission, Water and Electric Revenue Refunding No Opt. Call Aa1 5,708,955
Bonds, Series 1992, 6.000%, 10/01/10
- ---------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 4.8%
835,000 Florida Keys Aqueduct Authority, Water Revenue Bonds, 9/01 at 101 AAA 884,173
Series 1991, 6.750%, 9/01/21
2,560,000 Florida Governmental Utility Authority, Utility Revenue Bonds 10/09 at 101 Aaa 2,406,170
(Golden Gate Utility System), Series 1999, 5.000%, 10/01/29
6,000,000 Village of Royal Palm Beach, Florida, Utility System Revenue 10/01 at 102 AAA 6,437,700
Refunding Bonds, Series 1991, 6.875%, 10/15/15
5,250,000 Seminole County, Florida, Water and Sewer Revenue Refunding and No Opt. Call AAA 5,707,328
Improvement Bonds, Series 1992, 6.000%, 10/01/19
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WATER AND SEWER (continued)
$ 1,450,000 City of Tampa, Florida, Water and Sewer Systems Revenue Bonds, 10/02 at 101 AAA $1,518,813
Series 1992, 6.000%, 10/01/17
- ---------------------------------------------------------------------------------------------------------------------------------
$ 349,155,000 Total Investments - (cost $341,012,047) - 100.4% 357,144,369
=============--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.4)% (1,500,206)
-----------------------------------------------------------------------------------------------------------------
Net Assets - 100% $355,644,163
=================================================================================================================
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call
or redemption. There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient U.S.
government or U.S. government agency securities which ensures the timely
payment of principal and interest. Securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN FLORIDA QUALITY INCOME MUNICIPAL FUND (NUF)
JUNE 30, 1999
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION AND CIVIC ORGANIZATIONS - 2.5%
Brevard County Educational Facilities Authority (Florida),
Educational Facilities Refunding and Improvement Revenue Bonds,
Series 1992:
$ 2,850,000 6.750%, 11/01/07 11/02 at 102 BBB- $3,050,042
4,790,000 6.875%, 11/01/22 11/02 at 102 BBB- 5,038,457
- ---------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 7.1%
1,000,000 Alachua County Health Facilities Authority, Florida, Health Facilities 12/02 at 100 AAA 1,024,680
Revenue Bonds, Series 1992R (Shands Hospital at the University of
Florida Project), 5.750%, 12/01/15
10,395,000 City of Jacksonville, Florida, Hospital Revenue Bonds, Series 1992 2/02 at 102 AAA 11,034,812
(University Medical Center, Inc. Project), 6.600%, 2/01/21
1,500,000 City of Leesburg, Florida, Hospital Revenue Refunding Bonds (Leesburg 7/03 at 102 A- 1,575,195
Regional Medical Center Project), Series 1993A, 6.250%, 7/01/09
1,675,000 Orange County Health Facilities Authority, Florida, Hospital Revenue 11/01 at 102 AAA 1,797,979
Bonds, Series 1991A (Adventist Health System/Sunbelt, Inc.),
6.875%, 11/15/15
5,000,000 Orange County, Florida, Health Facilities Authority, Hospital Revenue 11/05 at 102 AAA 5,111,250
Bonds, Series 1995 (Adventist Health System/Sunbelt Obligated
Group), 5.750%, 11/15/25
2,000,000 Orange County, Florida, Health Facilities Authority, Hospital Revenue No Opt. Call AAA 2,226,060
Bonds (Orlando Regional Healthcare System), Series 1996A,
6.250%, 10/01/18
- ---------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 8.1%
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 7/06 at 102 AAA 1,597,665
1,000,000 6.300%, 1/01/32 7/06 at 102 AAA 1,067,170
9,600,000 Housing Finance Authority of Broward County, Florida, Multifamily 6/09 at 102 N/R 9,406,560
Housing Revenue Bonds (Pembroke Gardens Project),
Series 1999, 6.150%, 6/01/39 (Alternative Minimum Tax)
1,655,000 Florida Housing Finance Agency, General Mortgage Revenue Refunding 6/02 at 103 AAA 1,747,564
Bonds, 1992 Series A, 6.400%, 6/01/24
1,000,000 Florida Housing Finance Agency, Housing Revenue Bonds, 10/05 at 102 AAA 1,049,310
1995 Series F (Holly Cove Apartment Project), 6.150%, 10/01/25
(Alternative Minimum Tax)
Florida Housing Finance Agency, Housing Revenue Bonds, 1997
Series F (Mar Lago Village Apartments Project):
1,655,000 5.800%, 12/01/17 (Alternative Minimum Tax) 12/07 at 102 AAA 1,720,521
1,670,000 5.900%, 12/01/27 (Alternative Minimum Tax) 12/07 at 102 AAA 1,742,562
3,670,000 Florida Housing Finance Corporation, Housing Revenue Refunding 12/08 at 102 A+ 3,616,051
Bonds, 1998 Series O (Hunters Ridge at Deerwood Apartments),
5.300%, 12/01/28
1,000,000 Hialeah Housing Authority, Florida, Housing Revenue Refunding Bonds, 6/08 at 105 AAA 1,001,940
Series 1998 (GNMA Collateralized), Affordable Housing Program,
5.300%, 12/20/18
3,240,000 Housing Finance Authority of Pinellas County, Florida, Multifamily 1/08 at 100 AAA 3,257,820
Housing Revenue Bonds (Emerald Bay Apartments Projects),
Series 1998A, 5.000%, 4/01/28 (Alternative Minimum Tax)
(Mandatory put 4/01/08)
- ---------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.7%
1,749,000 Housing Finance Authority of Dade County (Florida), Single Family 12/01 at 102 AAA 1,835,471
Mortgage Revenue Refunding Bonds, Series 1991D,
6.950%, 12/15/12
410,000 Housing Finance Authority of Dade County (Florida), Single Family 3/01 at 102 Aaa 426,195
Mortgage Revenue Refunding Bonds, Series 1991E, 7.000%, 3/01/24
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING/SINGLE FAMILY (continued)
$ 1,665,000 Housing Finance Authority of Dade County (Florida), Single Family 4/05 at 102 AAA $1,736,728
Mortgage Revenue Bonds, Series 1995, 6.550%, 10/01/27
(Alternative Minimum Tax)
5,125,000 Florida Housing Finance Agency, Homeowner Mortgage Revenue 1/06 at 102 AA 5,351,884
Bonds, 1995 Series 2 (Refunding/New Money Issue),
6.200%, 7/01/27 (Alternative Minimum Tax)
2,725,000 Florida Housing Finance Agency, Home Ownership Revenue No Opt. Call AAA 2,995,702
Refunding Bonds, 1987 Series G1, 8.595%, 11/01/17
3,165,000 Housing Finance Authority of Hillsborough County (Florida), Single 10/07 at 102 Aaa 3,038,115
Family Mortgage Revenue Bonds, Series 1998A, 5.300%, 4/01/31
(Alternative Minimum Tax)
2,675,000 Housing Finance Authority of Lee County (Florida), Single Family 3/07 at 105 Aaa 2,993,031
Mortgage Revenue Bonds, (Multi-County Program), Series 1997A,
Subseries 1, 7.200%, 3/01/27 (Alternative Minimum Tax)
1,960,000 Housing Finance Authority of Orange County (Florida), Single 4/06 at 102 AAA 2,056,471
Family Mortgage Revenue Bonds (GNMA and Fannie Mae
Mortgage-Backed Securities Program), Series 1996A,
6.300%, 4/01/28 (Alternative Minimum Tax)
Housing Finance Authority of Orange County (Florida), Single Family
Mortgage Revenue Bonds (GNMA and Fannie Mae Mortgage-Backed
Securities Program), Series 1997B:
865,000 5.800%, 9/01/17 (Alternative Minimum Tax) 9/07 at 102 AAA 885,881
4,515,000 5.100%, 9/01/27 (Alternative Minimum Tax) 9/07 at 102 AAA 4,524,256
1,995,000 Housing Finance Authority of Palm Beach County (Florida), 4/07 at 102 Aaa 2,063,548
Single Family Mortgage Revenue Bonds, Series 1997A,
5.900%, 4/01/29 (Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 6.0%
2,150,000 Alachua County Library District, Florida, General Obligation 8/01 at 102 AAA 2,287,794
Refunding Bonds, Series 1991, 6.600%, 8/01/10
State of Florida, Full Faith and Credit, State Board of
Education, Public Education Capital Outlay Bonds, Series 1989-A
(Refunding Bonds):
5,000,000 6.000%, 6/01/25 6/00 at 100 AA+ 5,080,800
3,290,000 7.250%, 6/01/23 6/00 at 102 AA+ 3,446,012
10,000,000 State of Florida, Full Faith and Credit, State Board of Education, 6/08 at 101 AA+ 8,609,300
Public Education Capital Outlay Refunding Bonds, Series 1998-D,
4.500%, 6/01/24
- ---------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 3.5%
2,000,000 Certificates of Participation, Series 1994, The Department of 3/04 at 102 A+ 2,094,200
Corrections, State of Florida, 6.000%, 3/01/14
3,170,000 City of Jacksonville, Florida, Excise Taxes Revenue Bonds, No Opt. Call AAA 1,310,383
Series 1993, 0.000%, 10/01/15 (Alternative Minimum Tax)
2,000,000 City of Opa-Locka, Florida, Capital Improvement Revenue Bonds, 1/04 at 102 AAA 2,118,000
Series 1994, 6.125%, 1/01/24
5,500,000 City of St. Petersburg, Florida, Public Improvement Refunding 2/02 at 102 AAA 5,833,025
Revenue Bonds, Series 1992, 6.375%, 2/01/12
- ---------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 16.2%
12,000,000 Dade County, Florida, Aviation Bonds, Series 1996A, 10/06 at 102 AAA 12,201,120
5.750%, 10/01/26 (Alternative Minimum Tax)
1,500,000 Dade County, Florida, Aviation Revenue Bonds, Series 1995B, 10/05 at 102 AAA 1,606,035
6.000%, 10/01/24 (Alternative Minimum Tax)
8,540,000 Greater Orlando Aviation Authority, Airport Facilities Revenue 10/02 at 102 AAA 9,146,084
Bonds, Series 1992A, 6.500%, 10/01/12 (Alternative Minimum Tax)
5,000,000 Greater Orlando Aviation Authority, Airport Facilities Revenue 10/07 at 101 AAA 4,843,000
Bonds, City of Orlando, Florida, Series 1997, 5.250%, 10/01/23
(Alternative Minimum Tax)
7,500,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Series 1998A, 10/08 at 101 AAA 7,005,300
Miami International Airport (Hub of the Americas),
5.000%, 10/01/24 (Alternative Minimum Tax)
7,065,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Series 1998C, 10/08 at 101 AAA 6,607,824
Miami International Airport (Hub of the Americas),
5.000%, 10/01/23 (Alternative Minimum Tax)
7,500,000 Palm Beach County, Florida, Airport System Revenue Refunding 10/01 at 102 AAA 8,188,875
Bonds, Series 1991, 7.750%, 10/01/10
2,500,000 Palm Beach County, Florida, Airport System Revenue Refunding 10/02 at 102 AAA 2,675,550
Bonds, Series 1992, 6.375%, 10/01/14
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GUARANTEED - 24.7%
$ 1,500,000 Bradford County Health Facilities Authority, Health Facilities No Opt. Call AAA $1,622,295
Revenue Refunding Bonds, Series 1993 (Santa Fe Health Care
Facilities Project), 6.050%, 11/15/16
3,490,000 Charlotte County, Florida, Utility System Revenue Bonds, 10/01 at 102 AAA 3,768,048
Series 1991, 6.875%, 10/01/21 (Pre-refunded to 10/01/01)
7,000,000 Dade County Health Facilities Authority, Hospital Revenue Refunding 8/02 at 102 AAA 7,581,910
Bonds, Series 1992 (North Shore Medical Center Project),
6.500%, 8/15/15 (Pre-refunded to 8/15/02)
2,205,000 City of Dunedin, Florida, Hospital Revenue Bonds, Series 1991 11/01 at 102 AAA 2,378,732
(Mease Health Care), 6.750%, 11/15/21 (Pre-refunded to 11/15/01)
1,000,000 State of Florida, Full Faith and Credit, Pollution Control Bonds, 7/02 at 101 AA+*** 1,074,850
Series Y, Division of Bond Finance of the Department of General
Services, 6.600%, 7/01/17 (Pre-refunded to 7/01/02)
1,000,000 Hillsborough County, Florida, Capital Improvement, Non-Ad Valorem 1/00 at 102 A*** 1,035,020
Revenue Bonds (Museum of Science and Industry Project),
Series 1992, 6.450%, 1/01/22 (Pre-refunded to 1/01/00)
4,750,000 City of Hollywood, Florida, Water and Sewer Revenue Bonds, 10/01 at 102 AAA 5,128,433
Series 1991, 6.875%, 10/01/21 (Pre-refunded to 10/01/01)
4,625,000 Jacksonville Electric Authority, Florida, Bulk Power Supply 10/00 at 101 1/2 Aaa 4,869,015
System Revenue Bonds (Scherer 4 Project), Issue One,
Series 1991A, 6.750%, 10/01/21 (Pre-refunded to 10/01/00)
2,750,000 Kissimmee Utility Authority, Florida, Electric System Improvement 10/01 at 102 AAA 2,947,093
and Refunding Revenue Bonds, Series 1991, 6.500%, 10/01/17
(Pre-refunded to 10/01/01)
2,500,000 City of Leesburg, Florida, Capital Improvement Hospital Revenue 7/02 at 102 A-*** 2,770,475
Bonds (Leesburg Regional Medical Center Project), Series 1991A,
7.500%, 7/01/21 (Pre-refunded to 7/01/02)
Orange County, Tourist Development Tax Revenue Bonds, Series 1992B:
3,000,000 6.500%, 10/01/19 (Pre-refunded to 10/01/02) 10/02 at 102 AAA 3,256,560
7,490,000 6.000%, 10/01/21 (Pre-refunded to 10/01/02) 10/02 at 100 AAA 7,898,879
7,375,000 Orlando, Florida, Utilities Commission, Water and Electric 10/01 at 102 Aaa 7,903,566
Subordinated Revenue Bonds, Series 1991A, 6.500%, 10/01/20
(Pre-refunded to 10/01/01)
825,000 Solid Waste Authority of Palm Beach County, Refunding Revenue No Opt. Call AAA 904,703
Bonds, Series 1997A, 6.000%, 10/01/09
11,000,000 Reedy Creek Improvement District, Florida (Orange and 10/01 at 101 AAA 11,687,830
Osceola Counties), Utilities Revenue Bonds, Series 1991-1,
6.500%, 10/01/16 (Pre-refunded to 10/01/01)
5,000,000 St. Petersburg Health Facilities Authority, Florida, Revenue Bonds, 12/01 at 102 AAA 5,415,750
Series 1985A (Allegany Health System Loan Program),
7.000%, 12/01/15 (Pre-refunded to 12/01/01)
2,300,000 Sarasota County, Florida, Utility System Revenue Bonds, 10/04 at 102 AAA 2,557,876
Series 1994, 6.500%, 10/01/22 (Pre-refunded to 10/01/04)
2,000,000 The School Board of Seminole County, Florida, Certificates of 7/04 at 102 AAA 2,183,220
Participation, Series 1994A, 6.125%, 7/01/19
(Pre-refunded to 7/01/04)
1,000,000 City of Stuart, Florida, Public Utilities Revenue Improvement Bonds, 10/03 at 100 AAA 1,095,520
Series 1994, 6.800%, 10/01/24 (Pre-refunded to 10/01/03)
3,000,000 City of Tampa, Florida, Revenue Bonds (The Florida Aquarium 5/02 at 102 N/R*** 3,313,320
Project), Series 1992, 7.750%, 5/01/27 (Pre-refunded to 5/01/02)
- ---------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 16.0%
10,000,000 Citrus County, Florida, Pollution Control Refunding Revenue Bonds, 1/02 at 102 A+ 10,609,300
Series 1992A (Florida Power Corporation, Crystal River Power
Plant Project), 6.625%, 1/01/27
5,830,000 Hillsborough County Industrial Development Authority, Florida, 8/01 at 103 AA 6,384,666
Pollution Control Revenue Refunding Bonds (Tampa Electric
Company Project), Series 1991, 7.875%, 8/01/21
9,800,000 Hillsborough County Industrial Development Authority, Florida, 5/02 at 103 AA 10,954,930
Pollution Control Revenue Refunding Bonds (Tampa Electric
Company Project), Series 1992, 8.000%, 5/01/22
5,000,000 Jacksonville Electric Authority, Special Obligation 5th Crossover 10/04 at 101 AA 5,100,550
Series, 5.375%, 10/01/10
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
UTILITIES (continued)
Jacksonville Electric Authority, Florida, St. John's River Power Park System
Refunding Revenue Bonds, Issue Two, Series Seven:
$ 1,500,000 5.750%, 10/01/12 10/02 at 101 AA $1,556,145
2,000,000 5.500%, 10/01/14 10/02 at 101 AA 2,022,080
5,000,000 City of Lakeland, Florida, Energy System Refunding Revenue Bonds, No Opt. Call AAA 5,651,750
Series 1999B, 6.550%, 10/01/09
6,175,000 Solid Waste Authority of Palm Beach County, Refunding Revenue No Opt. Call AAA 6,683,141
Bonds, Series 1997A, 6.000%, 10/01/09
2,500,000 St. Lucie County, Florida, Solid Waste Disposal Revenue Bonds 2/01 at 102 AA- 2,647,375
(Florida Power and Light Company Project), Series 1991,
7.150%, 2/01/23 (Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 3.9%
5,000,000 Town of Davie, Florida, Water and Sewer Improvement and Refunding 10/02 at 102 AAA 5,336,350
Revenue Bonds, Series 1992, 6.250%, 10/01/17
5,300,000 Miami-Dade County, Florida, Water and Sewer System Revenue 10/09 at 101 AAA 4,974,050
Bonds, Series 1999A, 5.000%, 10/01/29
1,500,000 Peace River/Manasota Regional Water Supply Authority, Florida, 10/08 at 101 AAA 1,411,092
Revenue Bonds (Peace River Option Project), Series 1998A,
5.000%, 10/01/28
1,000,000 City of Venice, Florida, Utilities Revenue Refunding Bonds, 7/03 at 102 AAA 1,011,960
Series 1993, 5.500%, 7/01/14
- ---------------------------------------------------------------------------------------------------------------------------------
$ 301,179,000 Total Investments - (cost $298,204,648) - 96.7% 311,762,706
=============--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.3% 10,670,318
-----------------------------------------------------------------------------------------------------------------
Net Assets - 100% $322,433,024
=================================================================================================================
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call
or redemption. There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient U.S.
government or U.S. government agency securities which ensures the timely
payment of principal and interest. Securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
NUVEEN INSURED FLORIDA PREMIUM INCOME MUNICIPAL FUND (NFL)
JUNE 30, 1999
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HEALTH CARE - 7.3%
$ 2,500,000 Alachua County Health Facilities Authority (Florida), Health Facilities 12/02 at 100 AAA $2,561,700
Revenue Bonds, Series 1992R (Shands Hospital at the University
of Florida Project), 5.750%, 12/01/15
2,000,000 Brevard County Health Facilities Authority, Hospital Revenue Bonds, 10/06 at 101 AAA 2,056,940
Series 1996 (Holmes Regional Medical Center Project),
5.625%, 10/01/14
2,500,000 Hillsborough County Industrial Development Authority (Florida), No Opt. Call AAA 2,859,875
Industrial Development Revenue Bonds, Series 1994 (University
Community Hospital), 6.500%, 8/15/19
5,000,000 Hospital Board of Directors of Lee County (Florida), Hospital Revenue 4/07 at 102 AAA 5,106,150
Bonds (Lee Memorial Health System), Fixed Rate Hospital Revenue
Bonds, 1997 Series A, 5.750%, 4/01/22
5,000,000 North Broward Hospital District (Florida), Refunding and Improvement 1/07 at 101 AAA 4,932,800
Revenue Bonds, Series 1997, 5.375%, 1/15/24
5,785,000 Polk County Industrial Development Authority, Industrial 9/02 at 103 AAA 6,205,338
Development Variable Rate Revenue Bonds, 1985 Series 2
(Winter Haven Hospital Project), 6.250%, 9/01/15
- ---------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 7.6%
2,575,000 Housing Finance Authority of Broward County, Florida, Multifamily 5/07 at 102 AAA 2,695,768
Housing Revenue Refunding Bonds (Deer Chase Apartments
Project-GNMA Collateralized), Series 1997 A-1, 5.950%, 11/01/27
1,000,000 Housing Finance Authority of Broward County, Florida, Multifamily 6/07 at 102 AAA 1,050,260
Housing Revenue Refunding Bonds (Pompano Oaks Apartments
Project-GNMA Collateralized), Series 1997, 6.000%, 12/01/27
(Alternative Minimum Tax)
Housing Finance Authority of Collier County, Florida, Multifamily
Housing Revenue Refunding Bonds, Series 1998A, Subseries 1
(Saxon Manor Isles Project):
1,040,000 5.350%, 9/01/18 (Alternative Minimum Tax) 3/08 at 101 AAA 1,031,306
1,400,000 5.400%, 9/01/23 (Alternative Minimum Tax) 3/08 at 101 AAA 1,386,826
Housing Finance Authority of Collier County, Florida,
Multifamily Housing Revenue Bonds, Series 1998B (Saxon Manor
Isles Project):
1,260,000 5.350%, 9/01/18 (Alternative Minimum Tax) 3/08 at 101 AAA 1,249,466
1,000,000 5.400%, 9/01/23 (Alternative Minimum Tax) 3/08 at 101 AAA 990,590
Housing Finance Authority of Dade County, Florida, Multifamily
Mortgage Revenue Bonds (Siesta Pointe Apartments Project),
1997 Series A:
1,230,000 5.650%, 9/01/17 (Alternative Minimum Tax) 9/07 at 101 AAA 1,260,848
1,690,000 5.700%, 9/01/22 (Alternative Minimum Tax) 9/07 at 101 AAA 1,723,699
1,890,000 5.750%, 9/01/29 (Alternative Minimum Tax) 9/07 at 101 AAA 1,927,592
1,400,000 Florida Housing Finance Agency, Housing Revenue Bonds, 4/07 at 102 AAA 1,483,720
1997 Series A (Riverfront Apartments Project), 6.250%, 4/01/37
(Alternative Minimum Tax)
1,590,000 Florida Housing Finance Agency, Housing Revenue Bonds, 12/05 at 102 AAA 1,668,800
1995 Series E (Williamsburg Village Apartments Project),
6.100%, 12/01/20 (Alternative Minimum Tax)
1,000,000 Florida Housing Finance Agency, Housing Revenue Bonds, 5/06 at 102 AAA 1,052,180
1996 Series C1 (Turtle Creek Apartments Project),
6.100%, 5/01/16 (Alternative Minimum Tax)
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) 6/06 at 102 AAA 1,066,630
1,500,000 6.400%, 12/01/26 (Alternative Minimum Tax) 6/06 at 102 AAA 1,604,985
750,000 Florida Housing Finance Agency, Housing Revenue Bonds, 12/06 at 102 AAA 788,325
1996 Series V (The Crossings at Indian Run Apartments Project),
6.100%, 12/01/26 (Alternative Minimum Tax)
3,605,000 City of Jacksonville, Florida, Housing Revenue Refunding Bonds, 9/03 at 102 AAA 3,701,794
Series 1993A (GNMA Collateralized-Windermere Manor
Apartments Project), 5.875%, 3/20/28
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING/SINGLE FAMILY - 6.1%
$ 3,200,000 Housing Finance Authority of Broward County (Florida), Single Family 4/09 at 101 Aaa $3,048,000
Mortgage Revenue Refunding Bonds, Series 1999B,
5.250%, 4/01/31 (Alternative Minimum Tax)
4,750,000 Duval County Housing Finance Authority, Single Family Mortgage 10/04 at 102 Aaa 5,037,090
Revenue Bonds (GNMA Mortgage-Backed Securities Program),
Series 1994, 6.700%, 10/01/26 (Alternative Minimum Tax)
2,575,000 Escambia County Housing Finance Authority (Florida), Single Family 4/02 at 102 Aaa 2,693,836
Mortgage Revenue Bonds, Series 1992A (Multi-County Program),
6.900%, 4/01/20 (Alternative Minimum Tax)
4,500,000 Escambia County Housing Finance Authority (Florida), Single 4/08 at 102 Aaa 4,218,030
Family Mortgage Revenue Bonds, Series 1999 (Multi-County
Program), 5.200%, 4/01/32 (Alternative Minimum Tax)
3,970,000 Florida Housing Finance Agency, Homeowner Mortgage Revenue 7/07 at 102 AAA 4,101,089
Bonds, 1997 Series 2, 5.750%, 7/01/14 (Alternative Minimum Tax)
4,500,000 Florida Housing Finance Corporation, Homeowner Mortgage 1/09 at 31 9/32 AAA 780,840
Revenue Bonds, 1999 Series 2, 0.000%, 7/01/30
(Alternative Minimum Tax)
- ---------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 7.8%
2,000,000 Dade County, Florida, General Obligation Bonds (Parks Program), 11/07 at 102 AAA 1,928,660
Series 1997, 5.125%, 11/01/22
The School District of Dade County, Florida, General Obligation School
Bonds, Series 1994:
5,000,000 5.000%, 8/01/12 8/03 at 101 AAA 4,954,800
3,500,000 5.000%, 8/01/14 8/03 at 101 AAA 3,425,485
14,900,000 State of Florida, Full Faith and Credit, State Board of Education, 6/08 at 101 AAA 12,744,864
Public Education Capital Outlay Bonds, 1997 Series B,
4.500%, 6/01/28
2,000,000 The City of Miami, Florida, General Obligation Bonds, Series 1995 1/03 at 101 AAA 2,036,620
(Sanitary Sewer System), 5.400%, 1/01/12
- ---------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 16.8%
4,750,000 Dade County, Florida, Special Obligation and Refunding Bonds, 10/06 at 102 AAA 4,438,020
Series 1996B, 5.000%, 10/01/35
3,500,000 State of Florida, Department of Environmental Protection, 7/04 at 101 AAA 3,398,850
Preservation 2000 Revenue Bonds, Series 1994A, 4.900%, 7/01/13
4,500,000 State of Florida, Department of Environmental Protection, 7/05 at 101 AAA 4,695,975
Preservation 2000 Revenue Bonds, Series 1995A, 5.750%, 7/01/11
2,100,000 City of Gulf Breeze, Florida, Local Government Loan Program, 12/06 at 101 AAA 2,203,520
Revenue Bonds, Remarketed Series 1985B, 5.900%, 12/01/15
(Mandatory put 12/01/10)
8,500,000 City of Gulf Breeze, Florida, Capital Funding Revenue Bonds, 6/08 at 100 AAA 7,239,025
Series 1997B, 4.500%, 10/01/27
1,400,000 Hernando County, Florida, Capital Improvement Refunding 2/03 at 102 AAA 1,447,460
Revenue Bonds, Series 1993, 5.750%, 2/01/14
1,025,000 Jacksonville Sales Tax Revenue Bonds, Series 1995 10/05 at 101 AAA 1,057,974
(River City Renaissance Project), 5.500%, 10/01/10
5,000,000 The School Board of Miami-Dade County, Florida, Certificates 8/08 at 101 AAA 4,718,300
of Participation, Series 1998C (Refunding), 5.000%, 8/01/25
1,000,000 City of Opa-Locka, Florida, Capital Improvement Revenue Bonds, 1/04 at 102 AAA 1,105,370
Series 1994, 7.000%, 1/01/14
6,000,000 Orange County, Florida, Tourist Development Tax Revenue Refunding 10/02 at 102 AAA 6,403,620
Bonds, Series 1992A, 6.250%, 10/01/13
Palm Beach County, Florida, Administrative Complex Revenue
Refunding Bonds, Series 1993:
1,265,000 5.200%, 6/01/06 No Opt. Call AAA 1,306,087
6,500,000 5.250%, 6/01/11 No Opt. Call AAA 6,623,825
Palm Beach County, Florida, Criminal Justice Facilities, Revenue
Refunding Bonds, Series 1993:
3,000,000 5.375%, 6/01/08 No Opt. Call AAA 3,120,540
4,000,000 5.375%, 6/01/10 No Opt. Call AAA 4,133,360
2,335,000 Pasco County, Florida, Gas Tax Refunding Revenue Bonds, 8/02 at 102 AAA 2,421,699
Series 1992, 5.750%, 8/01/13
- ---------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 18.3%
3,000,000 Dade County, Florida, Aviation Revenue Refunding Bonds, Series Y, 10/03 at 102 AAA 3,090,960
5.500%, 10/01/11
Dade County, Florida, Seaport Revenue Refunding Bonds, Series 1995:
1,000,000 6.200%, 10/01/05 No Opt. Call AAA 1,087,640
1,100,000 5.750%, 10/01/15 10/05 at 102 AAA 1,146,453
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TRANSPORTATION (continued)
State of Florida, Department of Transportation, Turnpike Revenue Bonds,
Series 1995A:
$ 10,000,000 5.500%, 7/01/13 7/05 at 101 AAA $10,224,200
3,000,000 5.500%, 7/01/21 7/05 at 101 AAA 3,019,890
2,000,000 State of Florida, Department of Transportation, Turnpike Revenue 7/08 at 101 AAA 2,016,260
Bonds, Series 1998B, 5.250%, 7/01/13
2,000,000 Greater Orlando Aviation Authority, Airport Facilities Revenue 10/02 at 102 AAA 2,130,100
Bonds, Series 1992A, 6.375%, 10/01/21 (Alternative Minimum Tax)
Greater Orlando Aviation Authority, Airport Facilities Revenue
Bonds, City of Orlando, Florida, Series 1997:
1,000,000 5.125%, 10/01/17 (Alternative Minimum Tax) 10/07 at 101 AAA 963,190
4,795,000 5.250%, 10/01/23 (Alternative Minimum Tax) 10/07 at 101 AAA 4,644,437
6,000,000 Hillsborough County Aviation Authority, Florida, Tampa International 10/03 at 102 AAA 6,076,680
Airport Revenue Refunding Bonds, Series 1993B, 5.600%, 10/01/19
1,000,000 Hillsborough County Aviation Authority, Florida, Tampa International 10/03 at 102 AAA 980,000
Airport Revenue Bonds, Series 1993D, 5.375%, 10/01/23
(Alternative Minimum Tax)
6,000,000 Hillsborough County Aviation Authority, Florida, Tampa International 10/06 at 102 AAA 6,256,560
Airport Revenue Bonds, Series 1996B, 5.700%, 10/01/15
2,350,000 Jacksonville Port Authority, Airport Revenue Refunding Bonds, 10/03 at 102 AAA 2,286,597
Series 1993, 5.250%, 10/01/17 (Alternative Minimum Tax)
1,000,000 Jacksonville Port Authority, Florida, 1993 Port Facilities 11/03 at 102 AAA 1,139,970
Revenue Refunding Bonds, 7.625%, 11/01/07
3,800,000 Jacksonville Port Authority, Florida, 1996 Port Facilities Revenue 11/06 at 102 AAA 3,840,926
Refunding Bonds, 5.625%, 11/01/18 (Alternative Minimum Tax)
5,550,000 Palm Beach County, Florida, Airport System Revenue Refunding 10/01 at 102 AAA 6,045,005
Bonds, Series 1991, 7.625%, 10/01/04
1,000,000 City of Pensacola, Florida, Airport Revenue Bonds, Series 1997A, 10/07 at 102 AAA 1,028,590
5.600%, 10/01/17
3,000,000 Sarasota-Manatee Airport Authority, Airport System Revenue 8/06 at 102 AAA 3,075,690
Refunding Bonds, Series 1996, 5.375%, 8/01/11
- ---------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 16.3%
3,750,000 Broward County Health Facilities Authority, Florida, Hospital 6/03 at 102 AAA 4,000,875
Revenue Bonds (Holy Cross Hospital, Inc.), Series 1993,
5.850%, 6/01/12
2,700,000 City of Cocoa, Florida, Water and Sewer System Improvement 10/07 at 101 AAA 2,936,034
Revenue Bonds, Series 1997, 5.875%, 10/01/26
(Pre-refunded to 10/01/07)
3,000,000 Florida Municipal Power Agency, All-Requirements Power Supply 10/02 at 102 AAA 3,238,770
Project Revenue Bonds, Series 1992, 6.250%, 10/01/21
(Pre-refunded to 10/01/02)
4,000,000 Florida Municipal Power Agency, Stanton II Project Revenue Bonds, 10/02 at 102 AAA 4,348,480
Series 1992, 6.500%, 10/01/20 (Pre-refunded to 10/01/02)
2,000,000 State of Florida, Department of Transportation, Turnpike Revenue Bonds, 7/01 at 102 AAA 2,151,540
Series 1991A, 7.000%, 7/01/04 (Pre-refunded to 7/01/01)
3,995,000 State of Florida, Department of Transportation, Turnpike Revenue Bonds, 7/02 at 101 AAA 4,271,973
Series 1992A, 6.350%, 7/01/22 (Pre-refunded to 7/01/02)
930,000 Orange County, Florida, Water Utilities System Revenue Bonds, 4/02 at 102 AAA 995,965
Series 1992, 6.250%, 10/01/17 (Pre-refunded to 4/01/02)
City of Palm Bay, Florida, Utility System Refunding Revenue
Bonds, Series 1994 (Palm Bay Utility Corporation Project):
3,295,000 6.200%, 10/01/22 (Pre-refunded to 10/01/02) 10/02 at 102 AAA 3,552,307
1,000,000 6.200%, 10/01/17 (Pre-refunded to 10/01/02) 10/02 at 102 AAA 1,078,090
475,000 Solid Waste Authority of Palm Beach County, Refunding Revenue No Opt. Call AAA 520,890
Bonds, Series 1997A, 6.000%, 10/01/09
1,000,000 City of Port St. Lucie, Florida, Utility System Revenue Bonds, 9/04 at 100 AAA 1,072,000
Series 1994, 6.000%, 9/01/24 (Pre-refunded to 9/01/04)
St. Lucie County, Florida, Utility System Refunding and Revenue
Bonds, Series 1993:
5,000,000 5.500%, 10/01/15 10/03 at 102 AAA 5,115,950
1,200,000 5.500%, 10/01/21 10/03 at 102 AAA 1,220,712
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GUARANTEED (continued)
City of Sunrise, Florida, Utility System Revenue Bonds, Series 1996A:
$ 6,900,000 5.750%, 10/01/16 (Pre-refunded to 10/01/06) 10/06 at 101 AAA $7,405,011
8,700,000 5.750%, 10/01/21 (Pre-refunded to 10/01/06) 10/06 at 101 AAA 9,336,753
1,500,000 City of Tampa, Florida, Allegany Health System Revenue Bonds, 12/03 at 102 AAA 1,461,735
St. Joseph's Hospital, Inc. Issue, Series 1993, 5.125%, 12/01/23
- ---------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.9%
1,250,000 Florida Municipal Power Agency, St. Lucie Project Refunding Revenue 10/02 at 102 AAA 1,228,163
Bonds, Series 1992, 5.250%, 10/01/21
1,500,000 Florida Municipal Power Agency, Tri-City Project Refunding Revenue 10/03 at 100 AAA 1,507,470
Bonds, Series 1992, 5.500%, 10/01/19
City of Lakeland, Florida, Energy System Refunding Revenue Bonds,
Series 1999C:
4,785,000 6.050%, 10/01/08 No Opt. Call AAA 5,202,300
4,000,000 6.050%, 10/01/09 No Opt. Call AAA 4,361,880
3,525,000 Solid Waste Authority of Palm Beach County, Refunding Revenue No Opt. Call AAA 3,815,072
Bonds, Series 1997A, 6.000%, 10/01/09
10,000,000 Reedy Creek Improvement District, Florida, Utilities Revenue 4/04 at 101 AAA 9,457,200
Improvement and Refunding Bonds, Series 1994-1, 5.000%, 10/01/19
- ---------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.2%
1,000,000 City of Cocoa, Florida, Water and Sewer System Refunding Revenue 10/03 at 100 AAA 948,130
Bonds, Series 1993A, 5.000%, 10/01/23
3,000,000 City of Cocoa, Florida, Water and Sewer System Improvement Revenue 10/09 at 101 AAA 2,576,760
Bonds, Series 1999, 4.500%, 10/01/26
Dade County, Florida, Water and Sewer System Revenue Bonds,
Series 1995:
3,730,000 5.750%, 10/01/22 10/05 at 102 AAA 3,829,405
500,000 6.250%, 10/01/10 No Opt. Call AAA 552,565
2,000,000 The City of Daytona Beach, Florida, Water and Sewer Revenue Bonds, 11/02 at 100 AAA 2,007,480
Series 1992, 5.500%, 11/15/17
4,000,000 Florida Governmental Utility Authority, Utility Revenue Bonds 7/09 at 101 Aaa 3,760,760
(Golden Gate Utility System), Series 1999, 5.000%, 7/01/29
2,000,000 Hillsborough County, Florida, Refunding Utility Revenue Bonds, 8/01 at 102 AAA 2,129,180
Series 1991A, 6.625%, 8/01/11
8,000,000 Indian River County, Florida, Water and Sewer Revenue Bonds, 9/08 at 102 AAA 7,829,920
Series 1993A, 5.250%, 9/01/24
2,000,000 Indian Trail Water Control District, Water Control and Improvement 8/07 at 101 AAA 2,016,260
Bonds, Unit of Development No. 17, Series 1996, 5.500%, 8/01/22
1,070,000 Orange County, Florida, Water Utilities System Revenue Bonds, 4/02 at 102 AAA 1,134,671
Series 1992, 6.250%, 10/01/17
2,250,000 City of Port Orange, Florida, Water and Sewer Refunding Junior 10/03 at 101 AAA 2,210,693
Lien Revenue Bonds, Series 1993, 5.250%, 10/01/21
11,385,000 Seminole County, Florida, Water and Sewer Revenue Refunding No Opt. Call AAA 12,376,747
and Improvement Bonds, Series 1992, 6.000%, 10/01/19
1,300,000 City of Sunrise, Florida, Utility System Revenue Refunding Bonds, 10/06 at 102 AAA 1,379,442
Series 1996, 5.800%, 10/01/11
- ---------------------------------------------------------------------------------------------------------------------------------
$ 326,820,000 Total Investments - (cost $316,872,299) - 101.3% 327,772,862
=============--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (1.3)% (4,344,841)
-----------------------------------------------------------------------------------------------------------------
Net Assets - 100% $323,428,021
=================================================================================================================
All of the bonds in the portfolio are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by
an escrow or trust containing sufficient U.S. Government or U.S. Government
agency securities, any of which ensure the timely payment of principal and
interest.
* Optional Call Provisions (not covered by the report of independent
auditors): Dates (month and year) and prices of the earliest optional call
or redemption. There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
JUNE 30, 1999
<CAPTION>
FLORIDA FLORIDA INSURED FLORIDA
INVESTMENT QUALITY QUALITY INCOME PREMIUM INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in municipal securities, at market value (note 1) $357,144,369 $311,762,706 $327,772,862
Cash -- 71,505 --
Receivables:
Interest 6,534,125 5,168,457 5,052,472
Investments sold 18,885,000 6,859,301 --
Other assets 30,940 37,865 24,812
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 382,594,434 323,899,834 332,850,146
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 25,252,073 -- 8,027,947
Accrued expenses:
Management fees (note 6) 187,309 170,211 171,169
Other 196,929 181,748 205,170
Preferred share dividends payable 22,826 39,987 67,493
Common share dividends payable 1,291,134 1,074,864 950,346
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 26,950,271 1,466,810 9,422,125
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets (note 7) $355,644,163 $322,433,024 $323,428,021
====================================================================================================================================
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 16,344,330 14,143,420 14,290,929
====================================================================================================================================
Net asset value per Common share outstanding (net assets less Preferred
shares at liquidation value, divided by Common shares outstanding) $ 15.03 $ 15.37 $ 14.86
====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 1999
FLORIDA FLORIDA INSURED FLORIDA
INVESTMENT QUALITY QUALITY INCOME PREMIUM INCOME
<S> <C> <C> <C>
INVESTMENT INCOME (NOTE 1) $21,712,254 $18,738,374 $17,392,158
- -----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees (note 6) 2,325,327 2,111,282 2,138,621
Preferred shares - auction fees 274,998 262,501 277,499
Preferred shares - dividend disbursing agent fees 19,998 29,999 19,998
Shareholders' servicing agent fees and expenses 37,899 29,077 26,848
Custodian's fees and expenses 79,910 64,745 63,058
Trustees' fees and expenses (note 6) 3,511 3,157 3,143
Professional fees 18,035 17,919 18,291
Shareholders' reports - printing and mailing expenses 98,866 85,978 74,683
Stock exchange listing fees 24,681 24,287 24,262
Investor relations expense 29,922 26,587 25,754
Other expenses 18,760 20,435 17,731
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 2,931,907 2,675,967 2,689,888
Custodian fee credit (note 1) (16,309) (4,498) (971)
- -----------------------------------------------------------------------------------------------------------------------------------
Net expenses 2,915,598 2,671,469 2,688,917
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income 18,796,656 16,066,905 14,703,241
- -----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain from investment transactions (notes 1 and 4) 762,937 585,262 490,709
Net change in unrealized appreciation or depreciation of investments (10,614,192) (9,111,184) (9,873,348)
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (9,851,255) (8,525,922) (9,382,639)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 8,945,401 $ 7,540,983 $ 5,320,602
===================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
FLORIDA INVESTMENT QUALITY FLORIDA QUALITY INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/99 6/30/98 6/30/99 6/30/98
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 18,796,656 $ 19,242,210 $ 16,066,905 $16,286,684
Net realized gain from investment transactions
(notes 1 and 4) 762,937 1,445,856 585,262 529,659
Net change in unrealized appreciation or
depreciation of investments (10,614,192) 1,894,167 (9,111,184) 3,903,180
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 8,945,401 22,582,233 7,540,983 20,719,523
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From undistributed net investment income:
Common shareholders (15,659,441) (16,014,948) (12,703,787) (13,003,066)
Preferred shareholders (3,205,171) (3,508,271) (3,132,338) (3,521,372)
From accumulated net realized gains
from investment transactions:
Common shareholders (401,089) (1,184,749) -- --
Preferred shareholders (87,503) (261,895) -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions
to shareholders (19,353,204) (20,969,863) (15,836,125) (16,524,438)
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions 1,297,077 1,305,685 755,267 895,866
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (9,110,726) 2,918,055 (7,539,875) 5,090,951
Net assets at the beginning of year 364,754,889 361,836,834 329,972,899 324,881,948
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $355,644,163 $364,754,889 $322,433,024 $329,972,899
===================================================================================================================================
Balance of undistributed net investment
income at the end of year $ 540,787 $ 608,743 $ 550,023 $ 319,243
===================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
<TABLE>
INSURED FLORIDA PREMIUM INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED
6/30/99 6/30/98
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 14,703,241 $ 14,614,190
Net realized gain from investment transactions (notes 1 and 4) 490,709 922,944
Net change in unrealized appreciation or depreciation of investments (9,873,348) 10,603,825
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 5,320,602 26,140,959
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From undistributed net investment income:
Common shareholders (10,918,570) (11,163,589)
Preferred shareholders (3,357,270) (3,652,637)
From accumulated net realized gains from investment transactions:
Common shareholders -- --
Preferred shareholders -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (14,275,840) (14,816,226)
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (8,955,238) 11,324,733
Net assets at the beginning of year 332,383,259 321,058,526
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $323,428,021 $332,383,259
===================================================================================================================================
Balance of undistributed net investment income at the end of year $ 619,623 $ 192,222
===================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
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
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When price quotes
are not readily available (which is usually the case for municipal securities),
the pricing service establishes fair market value based on yields or prices of
municipal bonds of comparable quality, type of issue, coupon, maturity and
rating, indications of value from securities dealers and general market
conditions. Temporary investments in securities that have variable rate and
demand features qualifying them as short-term securities are valued at amortized
cost, which approximates market value.
SECURITIES TRANSACTIONS
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At June
30, 1999, there were no such outstanding purchase commitments in any of the
Funds.
INVESTMENT INCOME
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
when required for federal income tax purposes.
INCOME TAXES
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its tax-exempt net
investment income, in addition to any significant amounts of net realized
capital gains and/or market discount realized from investment transactions. The
Funds currently consider significant net realized capital gains and/or market
discount as amounts in excess of $.01 per Common share. Furthermore, each Fund
intends to satisfy conditions which will enable interest from municipal
securities, which is exempt from regular federal income taxes, to retain such
tax-exempt status when distributed to shareholders of the Funds. All monthly
tax-exempt income dividends paid during the fiscal year ended June 30, 1999,
have been designated Exempt Interest Dividends. Net realized capital gain and
market discount distributions are subject to federal taxation.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Tax-exempt net investment income is declared monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of distributions are determined in accordance with federal
income tax regulations, which may differ from 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 is as
follows:
INSURED
FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM
QUALITY INCOME INCOME
- --------------------------------------------------------------------------------
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
================================================================================
Effective July 14, 1999, Florida Investment Quality issued 880 Series T $25,000
stated value preferred shares.
Effective July 12, 1999, Florida Quality Income issued 480 Series F $25,000
stated value preferred shares.
INSURANCE
Insured Florida Premium Income 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 Fund ultimately disposes 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 the municipal
security covered by the Portfolio Insurance policy at the time of its sale.
DERIVATIVE FINANCIAL INSTRUMENTS
The Funds may invest in 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 fiscal year ended June 30, 1999.
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. Actual results may differ
from those estimates.
CUSTODIAN FEE CREDIT
Each Fund has an arrangement with the custodian bank whereby the custodian fees
and expenses are reduced by credits earned on each Fund's cash on deposit with
the bank. Such deposit arrangements are an alternative to overnight investments.
2. FUND SHARES
Transactions in Common shares were as follows:
<TABLE>
<CAPTION>
FLORIDA INVESTMENT QUALITY FLORIDA QUALITY INCOME
- ----------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/99 6/30/98 6/30/99 6/30/98
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment
of distributions 74,913 75,800 45,825 55,194
========================================================================================
<CAPTION>
INSURED FLORIDA
PREMIUM INCOME
- ----------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED
6/30/99 6/30/98
- ----------------------------------------------------------------------------------------
<S> <C> <C>
Shares issued to shareholders
due to reinvestment
of distributions -- --
========================================================================================
</TABLE>
<PAGE>
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid August 2, 1999, to shareholders of record on
July 15, 1999, as follows:
INSURED
FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM
QUALITY INCOME INCOME
- --------------------------------------------------------------------------------
Dividend per share $ .0790 $ .0760 $ .0665
================================================================================
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities during the fiscal year ended June
30, 1999, were as follows:
INSURED
FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM
QUALITY INCOME INCOME
- --------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $71,289,582 $50,372,761 $45,989,329
Short-term municipal securities 39,630,000 31,730,000 9,400,000
Sales and Maturities:
Long-term municipal securities 61,735,403 52,459,485 36,926,163
Short-term municipal securities 43,330,000 34,030,000 9,400,000
================================================================================
At June 30, 1999, 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, 1999, the following Funds had unused capital loss carryforwards
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied the carryforwards will expire as follows:
INSURED
FLORIDA FLORIDA
QUALITY PREMIUM
INCOME INCOME
- --------------------------------------------------------------------------------
Expiration year:
2002 $327,853 $ 624,284
2003 95,170 555,689
2004 142,676 461,823
2005 -- 261,244
- --------------------------------------------------------------------------------
Total $565,699 $1,903,040
================================================================================
<PAGE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at June 30, 1999, were as follows:
INSURED
FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM
QUALITY INCOME INCOME
- -------------------------------------------------------------------------------
Gross unrealized:
appreciation $18,434,570 $15,597,664 $13,616,539
depreciation (2,302,248) (2,039,606) (2,715,976)
- -------------------------------------------------------------------------------
Net unrealized appreciation $16,132,322 $13,558,058 $10,900,563
===============================================================================
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net assets of each Fund as follows:
AVERAGE DAILY NET ASSETS MANAGEMENT FEE
- --------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5875 of 1
================================================================================
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
7. COMPOSITION OF NET ASSETS
At June 30, 1999, net assets consisted of:
<TABLE>
<CAPTION>
INSURED
FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM
QUALITY INCOME INCOME
- ----------------------------------------------------------------------------------------------------------
<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 163,443 141,434 142,909
Paid-in surplus 228,230,339 203,749,207 202,667,966
Balance of undistributed net investment income 540,787 550,023 619,623
Accumulated net realized gain (loss) from investment transactions 577,272 (565,698) (1,903,040)
Net unrealized appreciation of investments 16,132,322 13,558,058 10,900,563
- ----------------------------------------------------------------------------------------------------------
Net assets $355,644,163 $322,433,024 $323,428,021
- ----------------------------------------------------------------------------------------------------------
Authorized shares:
Common Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited
==========================================================================================================
</TABLE>
<PAGE>
<TABLE>
Financial Highlights
Selected data for a Common share outstanding
throughout each fiscal year is as follows:
<CAPTION>
Investment Operations
-------------------------------
Net
Realized/
Beginning Net Unrealized
Net Asset Investment Investment
Value Income Gain (Loss) Total
<S> <C> <C> <C> <C>
Florida Investment Quality
Year Ended 6/30:
1999 $15.66 $1.16 $ (.59) $ .57
1998 15.55 1.18 .23 1.41
1997 15.25 1.22 .27 1.49
1996 15.45 1.22 (.18) 1.04
1995 15.11 1.23 .41 1.64
<CAPTION>
Florida Quality Income
<S> <C> <C> <C> <C>
Year Ended 6/30:
1999 15.96 1.14 (.61) .53
1998 15.66 1.16 .31 1.47
1997 15.26 1.18 .39 1.57
1996 15.29 1.18 -- 1.18
1995 14.69 1.19 .64 1.83
<CAPTION>
Insured Florida Premium Income
<S> <C> <C> <C> <C>
Year Ended 6/30:
1999 15.49 1.03 (.67) .36
1998 14.70 1.02 .81 1.83
1997 14.10 1.02 .61 1.63
1996 13.89 1.03 .22 1.25
1995 13.09 1.03 .84 1.87
<PAGE>
<CAPTION>
Less Distributions
-----------------------------------------------------------------------
Net Net
Investment Investment Capital Capital
Income Income Gains Gains
To Common To Preferred To Common To Preferred
Shareholders Shareholders+ Shareholders Shareholders+ Total
<S> <C> <C> <C> <C> <C>
Florida Investment Quality
Year Ended 6/30:
1999 $ (.96) $(.20) $(.03) $(.01) $ (1.20)
1998 (.99) (.22) (.07) (.02) (1.30)
1997 (.97) (.22) -- -- (1.19)
1996 (.99) (.25) -- -- (1.24)
1995 (1.00) (.28) (.02) -- (1.30)
<CAPTION>
Florida Quality Income
<S> <C> <C> <C> <C> <C>
Year Ended 6/30:
1999 (.90) (.22) -- -- (1.12)
1998 (.92) (.25) -- -- (1.17)
1997 (.92) (.25) -- -- (1.17)
1996 (.93) (.28) -- -- (1.21)
1995 (.94) (.29) -- -- (1.23)
<CAPTION>
Insured Florida Premium Income
<S> <C> <C> <C> <C> <C>
Year Ended 6/30:
1999 (.76) (.23) -- -- (.99)
1998 (.78) (.26) -- -- (1.04)
1997 (.78) (.25) -- -- (1.03)
1996 (.78) (.26) -- -- (1.04)
1995 (.79) (.28) -- -- (1.07)
<PAGE>
<CAPTION>
Total Returns
-------------------
Based
Ending Based on
Net Ending on Net
Asset Market Market Asset
Value Value Value* Value*
<S> <C> <C> <C> <C>
Florida Investment Quality
Year Ended 6/30:
1999 $15.03 $16.0000 (1.80)% 2.22%
1998 15.66 17.2500 9.08 7.70
1997 15.55 16.8125 10.68 8.56
1996 15.25 16.1250 11.60 5.19
1995 15.45 15.3750 8.98 9.43
<CAPTION>
Florida Quality Income
<S> <C> <C> <C> <C>
Year Ended 6/30:
1999 15.37 15.7500 2.79 1.88
1998 15.96 16.1875 7.07 7.98
1997 15.66 16.0000 13.23 8.89
1996 15.26 15.0000 8.08 5.94
1995 15.29 14.7500 12.74 10.97
<CAPTION>
Insured Florida Premium Income
<S> <C> <C> <C> <C>
Year Ended 6/30:
1999 14.86 14.5625 7.98 .73
1998 15.49 14.1875 7.38 10.87
1997 14.70 13.9375 9.30 10.01
1996 14.10 13.5000 12.22 7.15
1995 13.89 12.7500 5.59 12.75
<PAGE>
<CAPTION>
Ratios/Supplemental Data
-------------------------------------------------------------------------------------
Before Credit
--------------------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Ending Net Assets Net Assets Total Total
Net Applicable Applicable Net Assets Net Assets
Assets to Common to Common Including Including
(000) Shares++ Shares++ Preferred++ Preferred++
<S> <C> <C> <C> <C> <C>
Florida Investment Quality
Year Ended 6/30:
1999 $355,644 1.15% 7.39% .80% 5.16%
1998 364,755 1.14 7.55 .80 5.27
1997 361,837 1.15 7.87 .80 5.46
1996 355,708 1.15 7.89 .80 5.47
1995 357,534 1.18 8.21 .81 5.64
<CAPTION>
Florida Quality Income
<S> <C> <C> <C> <C>
Year Ended 6/30:
1999 322,433 1.19 7.13 .81 4.87
1998 329,973 1.18 7.26 .81 4.95
1997 324,882 1.20 7.63 .81 5.15
1996 319,015 1.22 7.64 .82 5.14
1995 319,351 1.29 8.05 .86 5.38
<CAPTION>
Insured Florida Premium Income
<S> <C> <C> <C> <C>
Year Ended 6/30:
1999 323,428 1.20 6.58 .80 4.39
1998 332,383 1.21 6.69 .80 4.44
1997 321,059 1.24 7.08 .81 4.60
1996 312,553 1.25 7.18 .81 4.66
1995 309,516 1.38 7.80 .88 4.95
<PAGE>
<CAPTION>
Ratios/Supplemental Data
-------------------------------------------------------------------------------
After Credit**
------------------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Net Assets Net Assets Total Total
Applicable Applicable Net Assets Net Assets Portfolio
to Common to Common Including Including Turnover
Shares++ Shares++ Preferred++ Preferred++ Rate
<S> <C> <C> <C> <C> <C>
Florida Investment Quality
Year Ended 6/30:
1999 1.15% 7.39% .80% 5.16% 17%
1998 1.14 7.55 .80 5.27 9
1997 1.15 7.87 .80 5.46 4
1996 1.15 7.89 .80 5.47 20
1995 1.18 8.21 .81 5.64 3
<CAPTION>
Florida Quality Income
<S> <C> <C> <C> <C> <C>
Year Ended 6/30:
1999 1.19 7.13 .81 4.87 16
1998 1.18 7.26 .81 4.95 10
1997 1.20 7.63 .81 5.15 22
1996 1.22 7.64 .82 5.14 19
1995 1.29 8.05 .86 5.38 8
<CAPTION>
Insured Florida Premium Income
<S> <C> <C> <C> <C> <C>
Year Ended 6/30:
1999 1.20 6.58 .80 4.39 11
1998 1.21 6.69 .80 4.44 11
1997 1.24 7.08 .81 4.60 21
1996 1.25 7.18 .81 4.66 26
1995 1.38 7.80 .88 4.95 5
* Total Return on Market Value is the combination of reinvested dividend
income, reinvested capital gains distributions, if any, and changes in
stock price per share. Total Return on Net Asset Value is the combination
of reinvested dividend income, reinvested capital gains distributions, if
any, and changes in net asset value per share. Total returns are not
annualized.
** After custodian fee credit, where applicable (note 1).
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
</TABLE>
<PAGE>
Build Your Wealth Automatically
SIDEBAR TEXT: NUVEEN OFFERS A NUMBER OF CONVENIENT WAYS TO ADD TO YOUR PORTFOLIO
AND EARN THE TAX-FREE INCOME YOU NEED TO ACHIEVE YOUR FINANCIAL GOALS.
SIDEBAR TEXT: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO
SET UP YOUR REINVESTMENT ACCOUNT.
Nuveen Exchange-Traded Funds Dividend Reinvestment Plan
Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares. If you do not
elect to reinvest distributions, all distributions are paid by check or can be
deposited directly into your bank or brokerage account.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. You'll also benefit from dollar-cost averaging, a technique of
investing at regular intervals, which allows you to build a high-quality,
tax-free portfolio conveniently and cost effectively over time.
Easy and convenient
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
Income or capital gains taxes may be payable on dividends or distributions that
are reinvested.
How shares are purchased
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
Flexibility
You may, of course, change your distribution option or withdraw from the Plan at
any time, should your needs or situation change. Should you withdraw, you can
receive a certificate for all whole shares credited to your reinvestment account
and cash payment for fractional shares, or cash payment for all reinvestment
account shares, less brokerage commissions and a $2.50 service fee.
You can also reinvest if your shares are registered in the name of a brokerage
firm, bank, or other nominee. Just ask your investment adviser if the firm will
participate on your behalf. If not, it's easy to have the shares registered in
your name and to apply for a reinvestment account directly. Participants whose
shares are registered in the name of one firm may not be able to transfer the
shares to another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial adviser or call us at (800)
257-8787.
<PAGE>
Fund Information
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT
AND SHAREHOLDER SERVICES
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
YEAR 2000
The concern that computer systems may have problems processing date-related
information in the year 2000 and beyond has challenged businesses and
organizations to thoroughly review all aspects of their operations. We have
undertaken just such an approach at Nuveen in preparation for the millennium.
Over the last 10 years, we have updated or replaced our trading, fund
management, and pricing systems at Nuveen - systems that directly affect our
investors and their financial advisers - to address Year 2000 concerns.
We continue to work closely with our transfer agent, custodian, firms through
whom we buy and sell portfolio securities, and other service partners to monitor
the Year 2000 readiness of their systems, while addressing other remaining
systems issues.
In addition, the Funds hold securities of issuers whose business operations
leave them susceptible to Year 2000 concerns. We seek to evaluate an issuer's
Year 2000 readiness as part of our initial and ongoing research of these
issuers. This is only one of the many factors considered in determining whether
to buy, sell, or continue holding a particular security.
Our Year 2000 review, repair, and testing program has been substantially
completed. This program included industry-wide testing of critical systems and
receipt of satisfactory assurances from critical service providers, vendors, and
issuers regarding their Year 2000 readiness. We will continue more refined
testing of our systems and their relationships with other parties' systems and
will regularly discuss the results of this testing with those parties. We are
also making Year 2000 contingency plans to guide recovery efforts in the event
that, despite our remediation attempts, Year 2000 issues adversely affect the
Funds. Although we can never have complete assurance that the steps we take will
be sufficient to prevent any problems that would impact the Nuveen
Exchange-Traded Funds, we can assure you that we will take all reasonable steps
to prevent disruption of the services provided by your Fund.
FUND POLICIES
The Board of Trustees of your Fund recently modified certain investment policies
of the Fund. The Fund was formerly not permitted to invest more than 5% of its
total assets in Municipal Leases that contain "non-appropriation" clauses. In
addition, your Fund was not permitted to invest more than 10% of its total
assets in Municipal Leases and securities that are unmarketable, illiquid or not
readily marketable. The Municipal Lease market has matured since the Fund's
inception, and non-appropriation leases have become more liquid and widely
accepted. The Nuveen Exchange-Traded Fund Board has eliminated the restrictions
noted above, replacing them with requirements that the Funds limit investments
in non-appropriation Municipal Leases to those that meet one or more of six
criteria that indicate that the issuer will be motivated to continue to
appropriate monies to make the payments under the Municipal Lease.
The Board also eliminated the Fund's policy not to invest more than 5% of its
total assets in unsecured obligations of issuers which, together with their
predecessors, have been in operation for less than three years.
Each fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 12-month period ended June 30, 1999. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
Serving Investors for Generations
Photo of: JOHN NUVEEN, SR.
Since our founding in 1898, John Nuveen & Co. has been synonymous with
investments that withstand the test of time. Today we offer a broad range of
quality investments designed for individuals seeking to build and sustain
wealth. In fact, more than 1.3 million investors have trusted Nuveen to help
them pursue their financial goals.
The cornerstone of Nuveen's investment philosophy is a commitment to disciplined
long-term investment strategies focused on providing consistent, attractive
performance over time - with moderated risk. We emphasize quality securities
carefully chosen through in-depth research, and we follow those securities
closely over time to ensure that they continue to meet our exacting standards.
Whether your focus is long-term growth, dependable current income or sustaining
accumulated wealth, Nuveen offers a wide variety of investments and services to
help meet your unique circumstances and financial planning needs. Our equity,
balanced, and tax-free income funds, along with our defined portfolios and
private asset management, can help you build a better, well-diversified
portfolio.
Talk with your financial adviser to learn more about how Nuveen investment
products and services can help you. Or call us at (800) 257-8787 for more
information, including a prospectus where applicable. Please read that
information carefully before investing.
LOGO: NUVEEN
helping investors sustain the wealth of a lifetime(tm).
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com
FAN-1-6-99
