NUVEEN Exchange-Traded Funds
DECEMBER 31, 1998
SEMIANNUAL REPORT
DEPENDABLE, TAX-FREE INCOME
TO HELP YOU KEEP MORE OF
WHAT YOU EARN.
NQF
NUF
NFL
Florida
Photo of family on a beach
<PAGE>
Highlights
As of December 31, 1998
CONTENTS
1 Dear Shareholder
3 Portfolio Manager's Comments
5 NQF Performance Overview
6 NUF Performance Overview
7 NFL Performance Overview
8 Shareholder Meeting Report
11 Portfolio of Investments
23 Statement of Net Assets
23 Statement of Operations
24 Statement of Changes in Net Assets
25 Notes to Financial Statements
29 Financial Highlights
32 Building Better Portfolios
33 Fund Information
===============================================================================
Credit Quality Performance Highlights
Nuveen Florida Investment Quality Municipal Fund (NQF)
o Taxable-equivalent yield of 7.80%*
o Taxable-equivalent one-year total return
on net asset vale of 8.83%*
o Good credit quality, with 95% of the fund's
investments rated AA or higher
Pie Chart
AAA/U.S. Guaranteed 81%
AA 14%
A 3%
BBB/NR 2%
Nuveen Florida Quality Income Municipal Fund (NUF)
o Taxable-equivalent yield of 7.54%*
o Taxable-equivalent one-year total return
on net asset vale of 8.46%*
o Good credit quality, with 92% of the fund's
investments rated AA or higher
Pie Chart
AAA/U.S. Guaranteed 76%
AA 16%
A 6%
BBB/NR 2%
Nuveen Insured Florida Premium Income Municipal Fund (NFL)
o Outperformed Lehman Brothers Insured
Municipal Bond Index's** total return and
its Lipper Peer Group's*** average total
return for the one-year period
o Taxable-equivalent yield of 6.87%*
o Taxable-equivalent one-year total return
on net asset value of 9.41%*
Pie Chart
Insured 82%
U.S. Guaranteed 18%
*For investors in the 31% federal income tax bracket. See your fund's
performance overview in this report for more information.
**The Lehman Brothers Insured Municipal Bond Index is an unleveraged index
comprised of a broad range of insured municipal bonds and does not reflect
any initial or ongoing expenses.
***The Lipper Peer Group return represents the average annualized return of the
13 funds in the Lipper Florida Municipal Debt category.The return assumes
reinvestment of dividends and does not reflect any applicable sales charges.
<PAGE>
Dear Shareholder
PHOTO OF TIMOTHY R. SCHWERTFEGER
TIMOTHY R. SCHWERTFEGER
CHAIRMAN OF THE BOARD
WEALTH TAKES A LIFETIME TO BUILD. ONCE ACHIEVED, IT SHOULD BE PRESERVED.
I'm pleased to report that over the past 12 months, the Nuveen Florida
Exchange-Traded Funds have continued to perform well, meeting their primary
objectives of providing you with attractive levels of tax-free income and
after-tax total returns. The year's strong market for fixed-income securities,
bolstered by investor demand for quality investments, benefited these funds and
led to solid share price performances. The combination of attractive tax-free
income and after-tax total returns illustrates once again that Nuveen's
municipal bond funds can serve as excellent investment options for
income-oriented investors.
THE YEAR IN REVIEW
Over the past year, the markets endured bouts of volatility, as the Asian
financial crisis spilled over into emerging markets and affected economies
around the globe. Investors responded by seeking a haven from the uncertainty in
more conservative investments, such as municipal bond funds. To avert a
potential domestic credit crunch and bring some stability to global markets, the
Federal Reserve moved to ease short-term interest rates for the first time in
almost three years. Between the end of September and mid-November, three
successive cuts brought the federal funds rate to 4.75%. As interest rates
continued to trend downward, the competitive yields offered by our
exchange-traded funds stimulated additional investor interest and demand.
In this environment, the market for exchange-traded municipal bond funds was
exceptionally strong. These funds continued to represent bright spots among
fixed-income investments, offering attractive income in a market that places a
high premium on yield. In addition, the funds generally maintained good levels
of call protection, resulting in relatively stable income streams.
Throughout 1998, the U.S. economy exhibited more strength than had been expected
at the outset, and current conditions indicate that this momentum could continue
in 1999. In the coming months, we will continue to watch several key factors
affecting the economy's future, including corporate earnings reports, wage and
employment statistics, the strength of the U.S. dollar, events in international
markets, and any further interest rate indications from the Federal Reserve.
These factors will influence the outlook for fixed-income markets well into
1999.
MUNICIPAL BONDS: A COMPELLING VALUE
Over the past year, rising bond prices drove yields on 30-year Treasuries to
historic lows. With yields on long Treasury bonds pushing below 5% at times, the
yield on the Bond Buyer 40, an unmanaged index of long-term municipal bonds,
fell just 15 basis points - from 5.41% to 5.26% - compared with the 82-point
drop in Treasury yields over the past 12 months. As of December 31, 1998, the
ratio of long-term municipal yields to 30-year Treasury yields stood at more
than 103%, compared with the more typical range of 86-87%. Over the past few
months, this ratio has reached as high as 104%. For investors, this means that
quality long-term municipal bonds currently offer approximately the same yield
as Treasury bonds with comparable maturities - even before the tax advantages of
municipal bonds are taken into account. On an after-tax basis in today's market,
municipal bonds present an exceptionally attractive investment option relative
to Treasuries.
Graphic of Bond Buyer 40 chart
In the municipal market, where demand was limited by foreign investors'
inability to benefit from the tax advantages of municipals, low interest rates
and the strong economy combined to generate high levels of new issuance and a
dramatic increase in the refinancing of existing bonds. In 1998, there was $284
billion of municipal issuance, up 29% over 1997. In terms of total municipal
issuance, 1998 ranked as the second largest year on record, next to 1993's $292
billion.
The continued strength of the U.S. economy also produced improvements in the
fundamental financial health of many municipalities and boosted the overall
credit quality of municipal bonds. In 1998, issues upgraded by Moody's
outnumbered downgrades by a margin of 4 to 1. At Standard & Poor's, the ratio
was more than 2 to 1.
"THE KEY TO TAKING ADVANTAGE OF THE EXCEPTIONAL VALUES CURRENTLY AVAILABLE
IN THE MUNICIPAL MARKET IS THE ABILITY OF A PROVEN INVESTMENT MANAGER."
NUVEEN EXPERTISE IS KEY
The key to taking advantage of the exceptional values currently available in the
municipal market is the ability of a proven investment manager. At Nuveen, we
recognize the value of time-tested expertise. The high level of municipal
issuance in 1998, for example, highlighted the value of Nuveen's in-depth
knowledge of the municipal market, as our portfolio management teams carefully
analyzed the flood of issues to select those securities best suited to help the
funds achieve their investment objectives.
As a further enhancement to our management capabilities, Nuveen has assembled a
strong core of Premier AdvisersSM, a group of managers who are experts in their
particular areas of the market, to provide their experience and insights. In
addition to Nuveen Investment Advisory Services, our Premier Adviser for
tax-free investing, you can rely on other Premier Advisers for equity
investments, including Institutional Capital Corporation for value investing and
Rittenhouse Financial Services, Inc. for growth investing. For more information
about the funds managed by these Premier Advisers, including charges and
expenses, 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.
We encourage you to talk with your financial adviser about the ways Nuveen's
expanding selection of investments can help you establish a diversified
portfolio designed to build and sustain long-term financial security. We are
grateful for the confidence you have placed in us, and we intend to continue
earning your trust in the years ahead.
Sincerely,
/s/TIMOTHY R. SCHWERTFEGER
TIMOTHY R. SCHWERTFEGER
Chairman of the Board
February 15, 1999
<PAGE>
Portfolio Manager's Comments
PORTFOLIO MANAGER TOM O'SHAUGHNESSY DISCUSSES THE FLORIDA MUNICIPAL MARKET, THE
FUNDS' PERFORMANCE, AND KEY INVESTMENT STRATEGIES FOR THE FLORIDA FUNDS. TOM, A
15-YEAR VETERAN OF NUVEEN WITH RESPONSIBILITY FOR A RANGE OF STATE MUNICIPAL
BOND FUNDS, HAS MANAGED NQF AND NUF SINCE THEIR INCEPTION. IN JULY 1998, HE
RESUMED MANAGEMENT RESPONSIBILITY FOR NFL, WHICH HE HAD PREVIOUSLY MANAGED FROM
ITS INCEPTION IN OCTOBER 1992 THROUGH JANUARY 1995.
1 The Lehman Brothers Municipal Bond Index is an unleveraged index comprising a
broad range of investment-grade municipal bonds; results for the index do not
reflect any initial or ongoing expenses.
2 The Lehman Brothers Insured Municipal Bond Index is an unleveraged index
covering a broad range of insured municipal bonds; results for the index do
not reflect any initial or ongoing expenses.
3 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.
WHAT ECONOMIC FACTORS HAVE AFFECTED
THE MUNICIPAL MARKET IN FLORIDA?
Over the past year, Florida has seen significant job growth in the building
industry (primarily home construction and public works projects) as well as
healthcare, engineering, and management services. Tourism also continued to grow
in 1998. Job losses in apparel and textile manufacturing - paralleling similar
losses in these industries across the United States - were more than offset by
the impressive growth in the sectors mentioned above. As a result, the state's
unemployment rate in November 1998 fell to its lowest level in 25 years.
Florida, which has traditionally been regarded as a state with an older, retired
population, has recently experienced a large influx of younger families drawn by
these job opportunities. The impact of this migration can be seen in higher
school enrollments, which have resulted in overcrowded facilities. In 1999,
growth is expected to remain substantial, but slow somewhat. In terms of gross
state product, Florida could surpass South Carolina as the fastest growing state
in the Southeast, with much of the growth fueled by home construction.
For 1998, Florida's total municipal issuance was $15.1 billion, an increase of
26% over 1997, ranking Florida as fifth in the nation in terms of new issue
volume. The majority of these bonds were rated AAA or AA, reflecting the state's
high credit quality, diverse economy, and solid financial position. The fourth
quarter of 1998 saw very heavy supply, as the state's issuers, especially the
Florida State Board of Education, purposely accelerated the amount of bonds
issued in order to meet increased demand from investors who wanted to avoid the
state's intangibles tax by holding assets in Florida municipal issues at year
end. Overall demand in the state, which continues to be driven by individual
investors, remains very strong.
HOW DID THE FLORIDA FUNDS PERFORM OVER THE PAST YEAR?
For the 12 months ended December 31, 1998, the Nuveen Exchange-Traded Funds
covered in this report produced the following total returns on net asset value
(NAV), compared to the total return of the Lehman Brothers Municipal Bond
Index(1) and the Lehman Brothers Insured Municipal Bond Index (2).
LEHMAN BROTHERS
TAXABLE- LEHMAN BROTHERS INSURED
TOTAL EQUIVALENT MUNICIPAL BOND MUNICIPAL BOND
RETURN TOTAL RETURN* INDEX TOTAL INDEX TOTAL
FUND ON NAV ON NAV RETURN(1) RETURN(2)
- -------------------------------------------------------------------------
NQF 5.96% 8.83% 6.48% N/A
- -------------------------------------------------------------------------
NUF 5.84% 8.46% 6.48% N/A
- -------------------------------------------------------------------------
NFL 7.15% 9.41% N/A 6.69%
- -------------------------------------------------------------------------
* Taxable-equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after tax
basis. See your fund's performance overview in this report on pages 5-7 for
more information.
Over the past year, fund duration(3) played a large role in performance.
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 rates rise, longer duration can make the fund's NAV more
vulnerable to potential price declines. As interest rates trended downward
during 1998, funds with durations longer than that of the index generally tended
to outperform the market. This was the case with NFL, which had a duration of
9.25 years, compared with the insured Lehman index's duration of 8.47 years. NQF
and NUF, however, underperformed the market despite the fact that their
durations (7.71 and 7.51 years, respectively) were slightly longer than the
7.30-year duration of the Lehman index.
One contribution to the NAV underperformance of NQF and NUF was our decision to
maintain the funds' higher imbedded yields for as long as possible by holding
bonds purchased during periods of higher interest rates. In the current low
interest rate environment, if we had sold these bonds in an attempt to capture
slightly higher total returns, we would have had to replace the bonds with
issues offering lower yields, which could have led to even greater dividend
reductions than those declared last year. Selling these bonds could also have
led to the recognition of capital gains and the payment of taxable
distributions, which effectively reduces the amount of assets working to earn
income for the fund. Adding to our hold decision was the fact that many of the
bonds in these portfolios were irreplaceable given market conditions, offering a
combination of purchase price and yield that would have been impossible to
duplicate.
HOW WERE THE FUNDS' DIVIDENDS AND SHARE PRICES AFFECTED BY THE INTEREST RATE
VOLATILITY OF THE PAST YEAR?
Bond calls and declining interest rates contributed to a reduction in the income
levels of NQF and NUF, which were both issued in 1991, necessitating a dividend
adjustment in each fund. The relatively high proportion of single-family
mortgage revenue bonds in NQF and NUF - 15% and 9%, respectively - also impacted
the income level of these two funds when some of these bonds were prepaid as
interest rates fell. Proceeds from matured or prepaid bonds had to be reinvested
in bonds paying relatively lower current interest rates, which reduced the
income earned by the funds. Despite the dividend adjustments, both of these
funds continued to provide competitive market yields.
As Tim mentioned in his letter to shareholders, share price performance among
the Nuveen Exchange-Traded Funds has been strong over the past 12 months. As
interest rates fell, active demand for these funds generally resulted in
increased share prices. As of December 31, 1998, all three Florida funds were
trading at premiums to their net asset values.
CURRENT PREMIUM/ TOTAL RETURN
MARKET YIELD DISCOUNT ON SHARE PRICE
- -------------------------------------------------------------------------------
TAXABLE 1 YEAR ENDING TAXABLE
12/31/98 EQUIVALENT* 12/31/97 12/31/98 12/31/98 EQUIVALENT*
- -------------------------------------------------------------------------------
NQF 5.38% 7.80% 12.56% 12.40% 5.13% 7.67%
- -------------------------------------------------------------------------------
NUF 5.20% 7.54% 4.43% 7.15% 8.41% 10.91%
- -------------------------------------------------------------------------------
NFL 4.74% 6.87% -3.91% 0.08% 11.86% 14.21%
- -------------------------------------------------------------------------------
* 31.0% federal income tax bracket
See your fund's performance overview in this report, on pages 5-7, for more
complete information.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE FUNDS DURING THE PAST YEAR?
With the declining interest rate environment of the past year, the issue for
older funds such as these becomes one of maintaining their above-market income
streams for as long as possible. With the normal progression of time, a fund's
duration and call protection will continue to decline. These funds were
assembled in 1991 and 1992, and their average call protection extends to 2001
and 2002. Over the past year, we began to consider ways of how to restructure
the funds in order to maintain their performance and yields. However, we are
carefully balancing the need for eventual change against the goal of maintaining
high levels of tax-free income for shareholders. NQF and NUF offered strong
risk-adjusted performance, relatively steady income, and lower durations, which
helped to protect their share prices during the market volatility of the past 12
months.
All three funds saw very little activity in terms of new investments in 1998 due
to the fact that the bonds currently held in these portfolios offer higher
income streams than bonds that can be bought in the market today. The bonds we
did purchase were at the long end of the yield curve. With the Federal Reserve's
easing of interest rates, the yield curve steepened somewhat in the final
quarter of 1998, meaning that the difference in yields between lower-rated and
higher-rated bonds widened. Lower-rated bonds tend to pay higher interest rates
due to the credit risk involved in purchasing them. Nuveen does buy lower-rated
bonds, but they have to be at least investment grade quality (comparable to BBB
or better). We believe the funds are being compensated for taking on this
additional risk.
WHAT IS NUVEEN'S OUTLOOK FOR THE FUTURE?
Looking ahead for the Florida funds, our focus will remain on strategies that
support the income streams of these funds. Given current market conditions, we
plan to use the proceeds from bond calls and interest payments to maintain the
durations of these funds relative to the market. If we remain in the current low
inflation environment, we will also consider further lengthening the durations
of NQF and NUF to enable these funds to participate more fully in market gains
because, as mentioned earlier, funds with longer durations generally tend to
outperform the market. Selecting bonds that will enhance the funds' performance
is an area where Nuveen's expertise - as an experienced investment manager
knowledgeable about the unique aspects of the Florida municipal market can
result in added value for our investors.
The current market environment - influenced by declining interest rates, benign
inflation, and strong municipal supply - has helped to position municipal bonds
as one of the most compelling values in today's marketplace. We expect that the
excellent municipal-to-Treasury ratio (municipal yields are currently higher
than Treasury yields even before the tax advantage of municipals is accounted
for), combined with continued volatility in the equity markets and investors'
increasing awareness of the need for asset allocation rebalancing, will result
in growing demand for municipal bond funds. We believe that investors who take
advantage of current opportunities in the municipal market should be rewarded
with healthy returns and attractive yields in the months ahead, as the market
recognizes the value of these quality investments.
<PAGE>
Nuveen Florida Investment Quality Municipal Fund
Performance Overview
As of December 31, 1998
NQF
PORTFOLIO STATISTICS
=======================================================
Inception Date 2/91
- -------------------------------------------------------
Share Price $17 5/8
- -------------------------------------------------------
Net Asset Value Per Share $15.68
- -------------------------------------------------------
Current Market Yield 5.38%
- -------------------------------------------------------
Taxable-Equivalent Yield(1) 7.80%
- -------------------------------------------------------
Fund Net Assets ($000) $365,653
- -------------------------------------------------------
Average Weighted Maturity (Years) 15.61
- -------------------------------------------------------
Leverage-Adjusted Duration (Years) 7.71
- -------------------------------------------------------
=======================================================
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
- -------------------------------------------------------
1-Year 5.13% 5.96%
- -------------------------------------------------------
3-Year 9.96% 6.21%
- -------------------------------------------------------
5-Year 8.02% 5.79%
- -------------------------------------------------------
Since Inception 8.50% 8.12%
- -------------------------------------------------------
=======================================================
TAX-EQUIVALENT TOTAL RETURN(1)
ON SHARE PRICE ON NAV
- -------------------------------------------------------
1-Year 7.67% 8.83%
- -------------------------------------------------------
3-Year 12.69% 9.08%
- -------------------------------------------------------
5-Year 10.93% 8.71%
- -------------------------------------------------------
Since Inception 11.36% 11.05%
- -------------------------------------------------------
=======================================================
TOP 5 SECTORS
U.S. Guaranteed 31%
- -------------------------------------------------------
Housing (Single Family) 15%
- -------------------------------------------------------
Transportation 13%
- -------------------------------------------------------
Utilities 12%
- -------------------------------------------------------
Health Care 9%
- -------------------------------------------------------
1998 Monthly Tax-Free Dividends Per Share(2)
Jan 0.082
Feb 0.082
Mar 0.082
Apr 0.082
May 0.082
Jun 0.082
Jul 0.082
Aug 0.082
Sep 0.082
Oct 0.082
Nov 0.079
Dec 0.079
Share Price Performance
1/2/98 17.75
17.688
17.563
17.688
17.75
17.938
18.063
17.875
17.75
17.313
17.313
17.438
17.313
17.375
17
17.25
17.125
17.375
17.063
17.125
17.313
17.375
17.25
17.375
17.375
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
12/31/98 17.625
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 current 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 taxable distributions in December of $0.0248
per share.
<PAGE>
Nuveen Florida Quality Income Municipal Fund
Performance Overview
As of December 31, 1998
NUF
PORTFOLIO STATISTICS
========================================================
Inception Date 10/91
- --------------------------------------------------------
Share Price $17 3/16
- --------------------------------------------------------
Net Asset Value Per Share $16.04
- --------------------------------------------------------
Current Market Yield 5.20%
- --------------------------------------------------------
Taxable-Equivalent Yield(1) 7.54%
- --------------------------------------------------------
Fund Net Assets ($000) $331,508
- --------------------------------------------------------
Average Weighted Maturity (Years) 16.20
- --------------------------------------------------------
Leverage-Adjusted Duration (Years) 7.51
- --------------------------------------------------------
========================================================
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
- --------------------------------------------------------
1-Year 8.41% 5.84%
- --------------------------------------------------------
3-Year 10.86% 6.45%
- --------------------------------------------------------
5-Year 8.10% 6.10%
- --------------------------------------------------------
Since Inception 8.15% 8.08%
- --------------------------------------------------------
========================================================
TAX-EQUIVALENT TOTAL RETURN(1)
ON SHARE PRICE ON NAV
- --------------------------------------------------------
1-Year 10.91% 8.46%
- --------------------------------------------------------
3-Year 13.56% 9.13%
- --------------------------------------------------------
5-Year 10.98% 8.86%
- --------------------------------------------------------
Since Inception 10.96% 10.83%
- --------------------------------------------------------
========================================================
TOP 5 SECTORS
U.S. Guaranteed 27%
- --------------------------------------------------------
Utilities 18%
- --------------------------------------------------------
Transportation 17%
- --------------------------------------------------------
Housing (Single Family) 9%
- --------------------------------------------------------
Tax Obligation (General) 8%
- --------------------------------------------------------
1998 Monthly Tax-Free Dividends Per Share(2)
Jan 0.077
Feb 0.077
Mar 0.077
Apr 0.077
May 0.077
Jun 0.077
Jul 0.077
Aug 0.0745
Sep 0.0745
Oct 0.0745
Nov 0.0745
Dec 0.0745
Share Price Performance
1/2/98 16.938
17.188
16.813
16.625
16.625
16.875
16.563
16.313
16.375
16.813
16.75
16.25
16.25
16.375
16.25
16.375
16.375
16.375
16.313
16.563
16.375
16.25
16.25
16.625
16.625
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
12/31/98 17.1875
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 current 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 December 31, 1998
NFL
PORTFOLIO STATISTICS
===========================================================
Inception Date 12/92
- -----------------------------------------------------------
Share Price $15 13/16
- -----------------------------------------------------------
Net Asset Value Per Share $15.80
- -----------------------------------------------------------
Current Market Yield 4.74%
- -----------------------------------------------------------
Taxable-Equivalent Yield(1) 6.87%
- -----------------------------------------------------------
Fund Net Assets ($000) $336,769
- -----------------------------------------------------------
Average Weighted Maturity (Years) 15.48
- -----------------------------------------------------------
Leverage-Adjusted Duration (Years) 9.25
- -----------------------------------------------------------
===========================================================
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
- -----------------------------------------------------------
1-Year 11.86% 7.15%
- -----------------------------------------------------------
3-Year 12.74% 6.90%
- -----------------------------------------------------------
5-Year 8.76% 6.59%
- -----------------------------------------------------------
Since Inception 6.64% 7.52%
- -----------------------------------------------------------
===========================================================
TAX-EQUIVALENT TOTAL RETURN(1)
ON SHARE PRICE ON NAV
- -----------------------------------------------------------
1-Year 14.21% 9.41%
- -----------------------------------------------------------
3-Year 15.35% 9.26%
- -----------------------------------------------------------
5-Year 11.55% 9.10%
- -----------------------------------------------------------
Since Inception 9.29% 9.96%
- -----------------------------------------------------------
===========================================================
TOP 5 SECTORS
Transportation 19%
- -----------------------------------------------------------
U.S. Guaranteed 18%
- -----------------------------------------------------------
Tax Obligation (Limited) 17%
- -----------------------------------------------------------
Water and Sewer 12%
- -----------------------------------------------------------
Utilities 8%
- -----------------------------------------------------------
1998 Monthly Tax-Free Dividends Per Share
Jan 0.065
Feb 0.065
Mar 0.065
Apr 0.065
May 0.0625
Jun 0.0625
Jul 0.0625
Aug 0.0625
Sep 0.0625
Oct 0.0625
Nov 0.0625
Dec 0.0625
Share Price Performance
1/2/98 14.75
15.25
14.813
15.125
15
14.938
15
15
15.063
14.75
14.75
14.75
14.813
14.938
14.875
14.813
14.688
14.813
14.313
14.375
14.5
14.313
14.313
14.188
14.188
14.25
14.375
14.188
14.25
14.313
14.563
14.375
14.5
14.438
14.5
14.438
14.563
14.5
15.125
15
15.875
15.56
15.44
15.56
15.38
15.5
15.56
15.38
15.31
15.25
12/31/98 15.8125
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 current 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>
<TABLE>
<CAPTION>
Shareholder Meeting Report
NQF
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE TRUSTEES WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred
Common Shares Shares Shares
Shares Series-M Series-TH Series-F
====================================================================================================================================
Robert P. Bremner
<S> <C> <C> <C>
For 14,809,190 2,034 2,092
Withhold 137,542 12 15
- ------------------------------------------------------------------------------------------------------------------------------------
Total 14,946,732 2,046 2,107
====================================================================================================================================
Lawrence H. Brown
For 14,807,338 2,034 2,092
Withhold 139,394 12 15
- ------------------------------------------------------------------------------------------------------------------------------------
Total 14,946,732 2,046 2,107
====================================================================================================================================
Anthony T. Dean
For 14,808,890 2,034 2,092
Withhold 137,842 12 15
- ------------------------------------------------------------------------------------------------------------------------------------
Total 14,946,732 2,046 2,107
====================================================================================================================================
Anne E. Impellizzeri
For 14,800,124 2,034 2,092
Withhold 146,608 12 15
- ------------------------------------------------------------------------------------------------------------------------------------
Total 14,946,732 2,046 2,107
====================================================================================================================================
Peter R. Sawers
For 14,803,861 2,034 2,092
Withhold 142,871 12 15
- ------------------------------------------------------------------------------------------------------------------------------------
Total 14,946,732 2,046 2,107
====================================================================================================================================
William J. Schneider
For -- 2,034 2,092
Withhold -- 12 15
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,046 2,107
====================================================================================================================================
Timothy R. Schwertfeger
For -- 2,034 2,092
Withhold -- 12 15
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,046 2,107
====================================================================================================================================
Judith M. Stockdale
For 14,802,526 2,034 2,092
Withhold 144,206 12 15
- ------------------------------------------------------------------------------------------------------------------------------------
Total 14,946,732 2,046 2,107
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 14,783,671 2,045 2,100
Against 29,633 -- 7
Abstain 133,428 1 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 14,946,732 2,046 2,107
====================================================================================================================================
<PAGE>
<CAPTION>
Shareholder Meeting Report
NUF
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE TRUSTEES WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred
Common Shares Shares Shares
Shares Series-M Series-TH Series-F
====================================================================================================================================
Robert P. Bremner
<S> <C> <C> <C> <C>
For 12,888,972 1,592 1,587 791
Withhold 94,866 2 -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 12,983,838 1,594 1,587 793
====================================================================================================================================
Lawrence H. Brown
For 12,888,389 1,592 1,587 791
Withhold 95,449 2 -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 12,983,838 1,594 1,587 793
====================================================================================================================================
Anthony T. Dean
For 12,889,296 1,592 1,587 791
Withhold 94,542 2 -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 12,983,838 1,594 1,587 793
====================================================================================================================================
Anne E. Impellizzeri
For 12,883,568 1,592 1,587 791
Withhold 100,270 2 -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 12,983,838 1,594 1,587 793
====================================================================================================================================
Peter R. Sawers
For 12,887,047 1,592 1,587 791
Withhold 96,791 2 -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 12,983,838 1,594 1,587 793
====================================================================================================================================
William J. Schneider
For -- 1,592 1,587 791
Withhold -- 2 -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,594 1,587 793
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,592 1,587 791
Withhold -- 2 -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,594 1,587 793
====================================================================================================================================
Judith M. Stockdale
For 12,888,193 1,592 1,587 791
Withhold 95,645 2 -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 12,983,838 1,594 1,587 793
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 12,765,976 1,591 1,583 792
Against 34,280 3 4 --
Abstain 183,582 -- -- 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total 12,983,838 1,594 1,587 793
====================================================================================================================================
<PAGE>
<CAPTION>
Shareholder Meeting Report
NFL
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE TRUSTEES WAS REACHED AS FOLLOWS:
Preferred Preferred
Common Shares Shares
Shares Series-W Series-TH
====================================================================================================================================
Robert P. Bremner
<S> <C> <C> <C>
For 13,038,755 1,609 2,745
Withhold 60,175 6 8
- ------------------------------------------------------------------------------------------------------------------------------------
Total 13,098,930 1,615 2,753
====================================================================================================================================
Lawrence H. Brown
For 13,029,974 1,609 2,745
Withhold 68,956 6 8
- ------------------------------------------------------------------------------------------------------------------------------------
Total 13,098,930 1,615 2,753
====================================================================================================================================
Anthony T. Dean
For 13,035,838 1,609 2,745
Withhold 63,092 6 8
- ------------------------------------------------------------------------------------------------------------------------------------
Total 13,098,930 1,615 2,753
====================================================================================================================================
Anne E. Impellizzeri
For 13,032,692 1,605 2,737
Withhold 66,238 10 16
- ------------------------------------------------------------------------------------------------------------------------------------
Total 13,098,930 1,615 2,753
====================================================================================================================================
Peter R. Sawers
For 13,036,829 1,605 2,737
Withhold 62,101 10 16
- ------------------------------------------------------------------------------------------------------------------------------------
Total 13,098,930 1,615 2,753
====================================================================================================================================
William J. Schneider
For -- 1,609 2,745
Withhold -- 6 8
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,615 2,753
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,609 2,745
Withhold -- 6 8
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,615 2,753
====================================================================================================================================
Judith M. Stockdale
For 13,034,192 1,609 2,745
Withhold 64,738 6 8
- ------------------------------------------------------------------------------------------------------------------------------------
Total 13,098,930 1,615 2,753
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 12,965,081 1,604 2,747
Against 52,648 11 2
Abstain 81,201 -- 4
- ------------------------------------------------------------------------------------------------------------------------------------
Total 13,098,930 1,615 2,753
====================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN FLORIDA INVESTMENT QUALITY MUNICIPAL FUND (NQF)
DECEMBER 31, 1998
(UNAUDITED)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HEALTH CARE - 9.3%
$ 1,500,000 The Cape Canaveral Hospital District, Revenue Refunding
Certificates, Series 1998, 5.250%, 1/01/28 1/08 at 101 BBB $ 1,460,790
11,000,000 Jacksonville Health Facilities Authority, Florida,
Hospital Facilities Refunding Revenue Bonds,
Series 1991 (St. Luke's Hospital Association Project), 7.125%, 11/15/20 11/01 at 102 AA+ 12,011,120
7,500,000 City of Miami Beach Health Facilities Authority,
Hospital Revenue Bonds Series 1998
(Mount Sinai Medical Center of Florida Project), 5.375%, 11/15/28 11/08 at 101 BBB 7,330,500
7,925,000 Adventist Health System/Sunbelt, Inc., Orange County,
Florida, Health Facilities Authority, Hospital
Revenue Bonds, Series 1991-B, 6.750%, 11/15/21 11/01 at 102 AAA 8,664,957
4,250,000 St. Johns County Industrial Development Authority,
Hospital Revenue Bonds (Flagler Hospital Project),
Series 1992, 6.000%, 8/01/22 8/02 at 102 A2 4,445,160
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.3%
1,890,000 Florida Housing Finance Agency, General Mortgage
Revenue Refunding Bonds, 1992 Series A,
6.400%, 6/01/24 6/02 at 103 AAA 2,018,728
2,500,000 Florida Housing Finance Agency, Housing Revenue Bonds,
1996 Series K-1 (Mariner Club Apartments
Project), 6.375%, 9/01/36 (Alternative Minimum Tax) 9/06 at 102 AAA 2,713,975
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 15.1%
6,845,000 Brevard County Housing Finance Authority, Single Family
Mortgage Revenue Refunding Bonds,
Series 1991C, 7.000%, 9/01/23 3/01 at 102 Aaa 7,247,486
4,470,000 Housing Finance Authority of Broward County, Florida, GNMA
and FNMA Collateralized Home Mortgage
Revenue Bonds, 1991 Series A, 7.350%, 3/01/23
(Alternative Minimum Tax) 3/01 at 102 AAA 4,710,128
1,220,000 Housing Finance Authority of Clay County (Florida), Single
Family Mortgage Revenue Bonds,
Series 1997 (Multi-County Program), 5.950%, 10/01/19
(Alternative Minimum Tax) 4/07 at 102 Aaa 1,293,871
1,230,000 Housing Finance Authority of Dade County (Florida),
Single Family Mortgage Revenue Bonds,
1990 Series C, 7.750%, 9/01/22 (Alternative Minimum Tax) 9/00 at 102 Aaa 1,287,195
730,000 Housing Finance Authority of Dade County (Florida),
Single Family Mortgage Revenue Bonds,
Series B, 7.250%, 9/01/23 (Alternative Minimum Tax) 3/01 at 102 Aaa 766,975
335,000 Housing Finance Authority of Dade County (Florida),
Single Family Mortgage Revenue Bonds,
Series 1995, 6.550%, 10/01/27 (Alternative Minimum Tax) 4/05 at 102 AAA 355,103
2,500,000 Escambia County Housing Finance Authority (Florida),
Single Family Mortgage Revenue Bonds,
Series 1998A (Multi-County Program), 5.300%, 10/01/19
(Alternative Minimum Tax) 4/07 at 102 Aaa 2,543,325
10,280,000 Florida Housing Finance Agency, Homeowner Mortgage
Revenue Bonds, 1995 Series 2
(Refunding/New Money Issue), 6.200%, 7/01/27
(Alternative Minimum Tax) 1/06 at 102 AA 10,935,453
1,900,000 Florida Housing Finance Agency, Homeowner Mortgage
Revenue Bonds, Series 2
(New Money and Refunding Issue), 6.350%, 7/01/28
(Alternative Minimum Tax) 1/07 at 102 AA 2,048,732
3,065,000 Florida Housing Finance Agency, Homeowner Mortgage
Revenue Bonds, Series 2,
5.900%, 7/01/29 (Alternative Minimum Tax) 7/07 at 102 AAA 3,236,916
3,040,000 Housing Finance Authority of Leon County (Florida), Single
Family Mortgage Revenue Bonds,
1991 Series A (Multi-County Program), 7.300%, 4/01/21
(Alternative Minimum Tax) 4/01 at 102 Aaa 3,191,270
2,570,000 Housing Finance Authority of Manatee County, Florida,
Single Family Mortgage Revenue Bonds,
Series 1994 Sub-Series 3, 7.600%, 11/01/26 (Alternative Minimum Tax) 11/05 at 105 Aaa 2,888,629
1,905,000 Housing Finance Authority of Manatee County, Florida,
Single Family Mortgage Revenue Bonds,
Series 1996 Sub-Series 1, 7.450%, 5/01/27 (Alternative Minimum Tax) 5/06 at 105 Aaa 2,171,395
Orange County Housing Finance Authority, GNMA Collateralized
Mortgage Revenue Bonds,
1991 Series A:
2,960,000 7.250%, 9/01/11 (Alternative Minimum Tax) 3/01 at 10 AAA 3,132,450
8,810,000 7.375%, 9/01/24 (Alternative Minimum Tax) 3/01 at 103 AAA 9,328,645
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAX OBLIGATION/GENERAL - 6.3%
$ 2,810,000 Broward County, Florida, Public Improvement Refunding Bonds,
Series 1986, (General Obligation Bonds.),
12.500%, 1/01/04 No Opt. Call AA $ 3,885,837
4,410,000 Dade County, Florida, Public Improvement Bonds (Series H), General
Obligation Bonds, 6.700%, 6/01/02 No Opt. Call AAA 4,830,494
6,955,000 State of Florida, Full Faith and Credit, State Board of Education,
Public Education Capital Outlay Bonds,
1993 Series F, 6.000%, 6/01/20 6/05 at 101 AA+ 7,556,468
7,000,000 Commonwealth of Puerto Rico, Public Improvement Bonds of 1998
(General Obligation Bonds),
5.000%, 7/01/28 7/08 at 101 A 6,878,060
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 6.6%
2,395,000 Dade County, Florida, Special Obligation Bonds
(Courthouse Center Project), Series 1994,
6.300%, 4/01/14 4/04 at 102 A3 2,665,683
8,905,000 Dade County, Florida, Special Obligation and Refunding Bonds,
Series 1996B, 5.000%, 10/01/35 10/06 at 102 AAA 8,837,589
5,000,000 The County of Hernando, Florida (Criminal Justice
Complex Financing Program), 1986 Series,
7.650%, 7/01/16 No Opt. Call AAA 6,688,650
1,400,000 City of Pembroke Pines, Florida, Capital Improvement
Revenue Bonds, Series 1995, 6.000%, 10/01/25 10/04 at 102 AAA 1,547,210
Tampa Sports Authority, 1995 Special Purpose Bonds, State of
Florida Sales Tax Payment Series
(Tampa Bay Arena Project):
1,250,000 5.750%, 10/01/20 No Opt. Call AAA 1,394,113
2,585,000 5.750%, 10/01/25 No Opt. Call AAA 2,905,359
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 13.3%
6,055,000 Broward County, Florida, Airport System Revenue Bonds,
Series G (AMT), 5.125%, 10/01/16
(Alternative Minimum Tax) (WI) 10/08 at 101 AAA 6,134,348
1,500,000 Dade County, Florida, Aviation Bonds, Series 1996A,
5.750%, 10/01/26 (Alternative Minimum Tax) 10/06 at 102 AAA 1,586,445
4,700,000 Greater Orlando Aviation Authority, Airport Facilities Revenue
Bonds, City of Orlando, Florida,
Series 1997, 5.750%, 10/01/09 (Alternative Minimum Tax) No Opt. Call AAA 5,216,342
Greater Orlando Aviation Authority, Airport Facilities Revenue
Bonds, City of Orlando, Florida, Series 1997:
1,990,000 5.750%, 10/01/10 (Alternative Minimum Tax) No Opt. Call AAA 2,216,283
2,500,000 5.750%, 10/01/11 (Alternative Minimum Tax) No Opt. Call AAA 2,789,675
2,590,000 Hillsborough County Aviation Authority, Florida, Tampa International
Airport Revenue Bonds,
1996 Series A, 6.000%, 10/01/23 (Alternative Minimum Tax) 10/06 at 102 AAA 2,794,973
3,500,000 Hillsborough County Aviation Authority, Florida, Tampa International
Airport Revenue Bonds,
Series 1996B, 5.875%, 10/01/23 10/06 at 102 AAA 3,807,125
4,780,000 Hillborough County Aviation Authority, Florida, Tampa International
Airport Revenue Refunding Bonds,
Series 1997 A, 5.750%, 10/01/06 (Alternative Minimum Tax) No Opt. Call AAA 5,268,755
2,130,000 Hillsborough County Aviation Authority, Florida, Tampa International
Airport Revenue Refunding Bonds,
1991 Series A, 6.900%, 10/01/11 10/99 at 102 AAA 2,227,341
15,450,000 Miami - Dade County, Florida, Aviation Revenue Bonds,
Series 1998C, Miami International Airport
(Hub of the Americas), 5.000%, 10/01/28 (Alternative Minimum Tax) 10/08 at 101 AAA 15,155,523
1,425,000 County of Volusia, Florida, Airport System Revenue Bonds,
Series 1991 (Daytona Beach
Regional Airport), 7.000%, 10/01/21 (Alternative Minimum Tax) 10/00 at 102 AAA 1,525,548
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 31.0%
7,475,000 Certificates of Participation, Series 1991A, The School
Board of Broward County, Florida, 7/01 at 102 AAA 8,137,808
6.500%, 7/01/11 (Pre-refunded to 7/01/01)
3,000,000 The Cape Canaveral Hospital District, Improvement Revenue
Certificates, Series 1991, 6.875%, 1/01/21
(Pre-refunded to 1/01/01) 1/01 at 102 AAA 3,252,660
12,000,000 Charlotte County, Florida, Utility System Revenue Bonds,
Series 1991, 7.000%, 10/01/14
(Pre-refunded to 10/01/01) 10/01 at 102 AAA 13,297,560
7,345,000 Collier County Water - Sewer District (Florida), Water and
Sewer Revenue Bonds, Series 1991,
6.500%, 7/01/21 (Pre-refunded to 7/01/99) 7/99 at 102 AAA 7,616,912
6,750,000 The School District of Dade County, Florida, General
Obligation School Bonds, Series 1989,
7.375%, 7/01/08 (Pre-refunded to 7/01/99) 7/99 at 102 AAA 7,028,640
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GUARANTEED (continued)
$ 7,225,000 Dade County, Florida, Special Obligation and Refunding
Bonds, Series 1996B, 0.000%, 10/01/20
(Pre-refunded to 10/01/08) 10/08 at 48 27/32 AAA $ 2,341,478
10,165,000 Florida Keys Aqueduct Authority, Water Revenue
Refunding Bonds, Series 1991, 6.750%, 9/01/21
(Pre-refunded to 9/01/01) 9/01 at 101 AAA 11,081,680
950,000 City of Fort Myers, Florida, Improvement Revenue Bonds
(Special Assessment Geographical Area
No. 24 Improvements), Series 1991A,
7.100%, 7/01/06 (Pre-refunded to 7/01/03) 7/03 at 100 BBB-*** 1,077,756
1,565,000 City of Green Cove Springs, Florida, Utilities Refunding
Revenue Bonds, Series 1991, 6.750%, 10/01/10
(Pre-refunded to 10/01/01) 10/01 at 102 AAA 1,724,067
3,530,000 Halifax Hospital Medical Center (Daytona Beach, Florida),
Hospital Revenue Refunding Bonds, 1991
Series A, 6.750%, 10/01/06 (Pre-refunded to 10/01/01) 10/01 at 102 AAA 3,886,812
1,870,000 Hillsborough County Aviation Authority, Florida, Tampa
International Airport Revenue Refunding Bonds,
1991 Series A, 6.900%, 10/01/11 (Pre-refunded to 10/01/99) 10/99 at 102 AAA 1,960,433
10,000,000 Jacksonville Electric Authority (Jacksonville, Florida),
St. Johns River Power Park System
Special Obligation Bonds, First Crossover Series,
6.000%, 10/01/15 (Pre-refunded to 10/01/99) 10/99 at 100 AA*** 10,221,000
11,000,000 Jacksonville Health Facilities Authority, Health Facilities
Revenue Refunding Bonds, Daughters of
Charity National Health System Inc., St. Vincent's
Medical Center Issue, Series 1990,
7.500%, 11/01/15 (Pre-refunded to 11/01/00) 11/00 at 102 Aaa 12,018,050
4,500,000 Orange County, Tourist Development Tax Refunding
Revenue Bonds, Series 1992A,
6.000%, 10/01/21 (Pre-refunded to 10/01/02) 10/02 at 100 AAA 4,866,390
5,000,000 St. Lucie County, Florida, Utility System Revenue
Bonds, Series 1990, 7.125%, 10/01/17
(Pre-refunded to 10/01/00) 10/00 at 102 AAA 5,417,600
4,000,000 City of St. Petersburg, Health Facilities Authority
(Florida), Revenue Bonds, Series 1985A
(Allegany Health System Loan Program),
7.000%, 12/01/15 (Pre-refunded to 12/01/01) 12/01 at 102 AAA 4,447,080
4,500,000 City of Tampa, Florida, Revenue Bonds (The Florida
Aquarium Project), Series 1992,
7.750%, 5/01/27 (Pre-refunded to 5/01/02) 5/02 at 102 N/R*** 5,121,810
2,900,000 City of Tampa, Florida, Water and Sewer Systems
Revenue Bonds, Series 1992, 6.000%, 10/01/17
(Pre-refunded to 10/01/02) 10/02 at 101 AAA 3,161,435
475,000 County of Volusia, Florida, Airport System Revenue Bonds,
Series 1991 (Daytona Beach Regional Airport),
7.000%, 10/01/21 (Pre-refunded to 10/01/00)
(Alternative Minimum Tax) 10/00 at 102 AAA 513,290
5,650,000 Certificates of Participation (School Board of Volusia
County, Florida, Master Lease Program),
Series 1991, 6.750%, 8/01/11 (Pre-refunded to 8/01/01) 8/01 at 102 AAA 6,197,711
- -----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.6%
435,000 City of Green Cove Springs, Florida, Utilities Refunding
Revenue Bonds, Series 1991, 6.750%, 10/01/10 10/01 at 10 AAA 473,924
4,250,000 City of Lakeland, Florida, Electric and Water Revenue
Bonds (Junior Subordinate Lien), Refunding and
Improvement, Series 1996B, 6.000%, 10/01/11 No Opt. Call AAA 4,924,985
6,500,000 Lee County, Florida, Solid Waste System Revenue
Bonds, Series 1991A, 7.000%, 10/01/05
(Alternative Minimum Tax) 10/01 at 102 AAA 7,123,545
4,750,000 Lee County, Florida, Solid Waste System Revenue
Bonds, Series 1991A, 7.000%, 10/01/06
(Alternative Minimum Tax) 10/01 at 102 AAA 5,205,668
10,620,000 Martin County, Florida, Pollution Control Revenue
Refunding Bonds (Florida Power and Light
Company Project), Series 1990, 7.300%, 7/01/20 7/00 at 102 AAA 11,374,763
7,460,000 Orlando Utilities Commission, Water and Electric
Subordinated Revenue Bonds, Series 1989D,
5.000%, 10/01/23 10/99 at 100 Aa2 7,360,334
5,250,000 Orlando Utilities Commission, Water and Electric
Revenue Refunding Bonds, Series 1992,
6.000%, 10/01/10 No Opt. Call Aa1 6,058,238
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.3%
4,155,000 Collier County Water - Sewer District (Florida), Water and
Sewer Revenue Bonds, Series 1991,
6.500%, 7/01/21 7/99 at 102 AAA 4,300,134
835,000 Florida Keys Aqueduct Authority, Water Revenue Bonds,
Series 1991, 6.750%, 9/01/21 9/01 at 101 AAA 902,017
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WATER AND SEWER (continued)
$ 6,000,000 Village of Royal Palm Beach, Florida, Utility System
Revenue Refunding Bonds, Series 1991,
6.875%, 10/15/15 10/01 at 102 b AAA $ 6,576,179
5,250,000 Seminole County, Florida, Water and Sewer Revenue
Refunding and Improvement Bonds, Series 1992,
6.000%, 10/01/19 No Opt. Call AAA 6,014,347
1,450,000 City of Tampa, Florida, Water and Sewer Systems
Revenue Bonds, Series 1992, 6.000%, 10/01/17 10/02 at 101 AAA 1,550,165
- ------------------------------------------------------------------------------------------------------------------------------------
$ 344,610,000 Total Investments - (cost $337,508,500) - 99.8% 364,929,095
============
TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.3%
$ 1,000,000 Puerto Rico Highway and Transportation Authority, Transportation Revenue, Variable VMG-1 1,000,000
============= Rate Demand Bonds, 3.5000%, 7/01/28+
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.1%) (276,223)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 365,652,872
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and prices
of the earliest optional call or redemption.
There may be other call provisions at varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient
U.S. government or U.S. government agency securities which ensures the
timely payment of principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis (note 1).
+ Security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The
rate disclosed is that currently in effect. This rate changes
periodically based on market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN FLORIDA QUALITY INCOME MUNICIPAL FUND (NUF)
DECEMBER 31, 1998
(UNAUDITED)
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- $ 3,128,189
4,790,000 6.875%, 11/01/22 11/02 at 102 BBB- 5,146,424
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 7.1%
1,000,000 Alachua County Health Facilities Authority (Florida),
Health Facilities Revenue Bonds, Series 1992R
(Shands Hospital at the University of Florida Project),
5.750%, 12/01/15 12/02 at 100 AAA 1,060,180
10,395,000 City of Jacksonville, Florida, Hospital Revenue Bonds,
Series 1992 (University Medical Center, Inc.
Project), 6.600%, 2/01/21 2/02 at 102 AAA 11,299,157
1,500,000 City of Leesburg, Florida, Hospital Revenue Refunding
Bonds (Leesburg Regional Medical Center
Project), Series 1993A, 6.250%, 7/01/09 7/03 at 102 A- 1,626,585
1,675,000 Orange County Health Facilities Authority, Florida,
Hospital Revenue Bonds, Series 1991-A (Adventist
Health System/Sunbelt Obligated Group, Inc.), 6.875%, 11/15/15 11/01 at 102 AAA 1,837,023
5,000,000 Orange County Health Facilities Authority, Florida,
Hospital Revenue Bonds, Series 1995 (Adventist
Health System/Sunbelt Obligated Group, Inc.), 5.750%, 11/15/25 11/05 at 102 AAA 5,334,000
2,000,000 Orange County Health Facilities Authority, Florida,
Hospital Revenue Bonds (Orlando Regional
Healthcare System), Series 1996A, 6.250%, 10/01/18 No Opt. Call AAA 2,332,600
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.2%
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 1,626,960
1,000,000 6.300%, 1/01/32 7/06 at 102 AAA 1,086,420
1,655,000 Florida Housing Finance Agency, General Mortgage
Revenue Refunding Bonds, 1992 Series A,
6.400%, 6/01/24 6/02 at 103 AAA 1,767,722
1,000,000 Florida Housing Finance Agency, Housing Revenue
Bonds, 1995 Series F (Holly Cove Apartment
Project), 6.150%, 10/01/25 (Alternative Minimum Tax) 10/05 at 102 AAA 1,068,180
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 1,753,837
1,670,000 5.900%, 12/01/27 (Alternative Minimum Tax) 12/07 at 102 AAA 1,772,087
3,670,000 Florida Housing Finance Corporation, Housing Revenue
Refunding Bonds, 1998 Series O (Hunters
Ridge at Deerwood Apartments), 5.300%, 12/01/28 12/08 at 102 A+ 3,695,653
1,000,000 Hialeah Housing Authority (Florida), Housing Revenue
Refunding Bonds, Series 1998 (GNMA
Collateralized), Affordable Housing Program, 5.300%, 12/20/18 12/08 at 105 AAA 1,025,430
3,240,000 Housing Finance Authority of Pinellas County, Florida,
Multifamily Housing Revenue Bonds
(Emerald Bay Apartments Projects), Series 1998A,
5.000%, 4/01/28 (Alternative Minimum Tax) 1/08 at 100 AAA 3,303,504
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 9.3%
2,344,000 Housing Finance Authority of Dade County (Florida),
Single Family Mortgage Revenue Refunding
Bonds, 1991 Series D, 6.950%, 12/15/12 12/01 at 102 AAA 2,487,289
410,000 Housing Finance Authority of Dade County (Florida),
Single Family Mortgage Revenue Bonds,
1991 Series E, 7.000%, 3/01/24 3/01 at 102 Aaa 430,422
1,665,000 Housing Finance Authority of Dade County (Florida),
Single Family Mortgage Revenue Bonds,
Series 1995, 6.550%, 10/01/27 (Alternative Minimum Tax) 4/05 at 102 AAA 1,764,917
5,260,000 Florida Housing Finance Agency, Homeowner
Mortgage Revenue Bonds, 1995 Series 2
(Refunding/New Money Issue), 6.200%, 7/01/27
(Alternative Minimum Tax) 1/06 at 102 AA 5,595,378
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING/SINGLE FAMILY (continued)
$ 3,275,000 Florida Housing Finance Agency, Home Ownership
Revenue Refunding Bonds, 1987 Series G1,
8.595%, 11/01/17 No Opt. Call AAA $ 3,781,282
3,165,000 Housing Finance Authority of Hillsborough County (Florida),
Single Family Mortgage Revenue Bonds,
Series 1998A, 5.300%, 4/01/31 (Alternative Minimum Tax) 10/07 at 102 Aaa 3,187,946
2,675,000 Housing Finance Authority of Lee County, Florida, Single Family
Mortgage Revenue Bonds (Multi-County
Program), Series 1997A, Subseries 1, 7.200%, 3/01/27
(Alternative Minimum Tax) 3/07 at 105 Aaa 3,044,257
1,960,000 Orange County Housing Finance Authority (Orange County,
Florida), Single Family Mortgage Revenue
Bonds (GNMA and Fannie Mae Mortgage-Backed
Securities Program), Series 1996A,
6.300%, 4/01/28 (Alternative Minimum Tax) 4/06 at 102 AAA 2,092,790
Orange County Housing Finance Authority, Single Family Mortgage
Revenue Bonds (GNMA and Fannie Mae Mortgage Backed Securities
Program), Series 1997B:
930,000 5.800%, 9/01/17 (Alternative Minimum Tax) 9/07 at 102 AAA 970,055
4,860,000 5.100%, 9/01/27 (Alternative Minimum Tax) 9/07 at 102 AAA 4,896,644
2,490,000 Housing Finance Authority of Palm Beach County, Florida,
Single Family Mortgage Revenue Bonds,
Series 1997A, 5.900%, 4/01/29 (Alternative Minimum Tax) 4/07 at 102 Aaa 2,622,866
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 7.6%
2,150,000 Alachua County Library District, Florida, General
Obligation Refunding Bonds, Series 1991,
6.600%, 8/01/10 8/01 at 102 AAA 2,333,954
4,525,000 Dade County, Florida, Public Improvement Bonds, Series I
(General Obligation Bonds), 6.900%, 7/01/02 No Opt. Call AAA 4,993,609
State of Florida, Full Faith and Credit, State Board of Education,
Public Education Capital Outlay
Refunding Bonds, Series 1989-A:
3,290,000 7.250%, 6/01/23 6/00 at 102 AA+ 3,508,423
5,000,000 6.000%, 6/01/25 6/00 at 100 AA+ 5,138,650
10,000,000 State of Florida, Full Faith and Credit, State Board of
Education, Public Education Capital Outlay
Refunding Bonds, 1998 Series D, 4.500%, 6/01/24 (WI) 6/08 at 101 AA+ 9,223,800
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 3.5%
2,000,000 Certificates of Participation, Series 1994, The
Department of Corrections (State of Florida),
6.000%, 3/01/14 3/04 at 102 A+ 2,161,340
3,170,000 City of Jacksonville, Florida, Excise Taxes Revenue
Bonds, Series 1993, 0.000%, 10/01/15
(Alternative Minimum Tax) No Opt. Call AAA 1,381,613
2,000,000 City of Opa-Locka, Florida, Capital Improvement Revenue
Bonds, Series 1994, 6.125%, 1/01/24 1/04 at 102 AAA 2,205,940
5,500,000 City of St. Petersburg, Florida, Public Improvement
Refunding Revenue Bonds, Series 1992,
6.375%, 2/01/12 No Opt. Call AAA 1,381,613
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 16.3%
12,000,000 Dade County, Florida, Aviation Revenue Bonds,
Series 1996A, 5.750%, 10/01/26
(Alternative Minimum Tax) 10/06 at 102 AAA 12,691,560
1,500,000 Dade County, Florida, Aviation Revenue Bonds,
Series 1995B, 6.000%, 10/01/24
(Alternative Minimum Tax) 10/05 at 102 AAA 1,625,745
8,540,000 Greater Orlando Aviation Authority, Airport Facilities
Revenue Bonds, Series 1992A, 6.500%, 10/01/12
(Alternative Minimum Tax) 10/02 at 102 AAA 9,387,937
5,000,000 Greater Orlando Aviation Authority, Airport Facilities
Revenue Bonds, Series 1997, 5.250%, 10/01/23
(Alternative Minimum Tax) 10/07 at 101 AAA 5,030,200
7,500,000 Miami - Dade County, Florida, Aviation Revenue
Bonds, Series 1998A, Miami International Airport
(Hub of the Americas), 5.000%, 10/01/24 (Alternative Minimum Tax) 10/08 at 101 AAA 7,366,200
7,065,000 Miami - Dade County, Florida, Aviation Revenue Bonds,
Series 1998C, Miami International Airport
(Hub of the Americas), 5.000%, 10/01/23 (Alternative Minimum Tax) 10/08 at 101 AAA 6,941,363
7,500,000 Palm Beach County, Florida, Airport System Revenue
Refunding Bonds, Series 1991, 7.750%, 10/01/10 10/01 at 10 AAA 8,393,925
2,500,000 Palm Beach County, Florida, Airport System Revenue
Refunding Bonds, Series 1992, 6.375%, 10/01/14 10/02 at 102 AAA 2,744,275
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GUARANTEED - 26.7%
$ 1,500,000 Bradford County Health Facilities Authority, Health
Facilities Revenue Refunding Bonds, Series 1993
(Santa Fe HealthCare Facilities Project), 6.050%, 11/15/16 No Opt. Call AAA $ 1,707,600
3,490,000 Charlotte County, Florida, Utility System Revenue
Bonds, Series 1991, 6.875%, 10/01/21
(Pre-refunded to 10/01/01) 10/01 at 102 AAA 3,856,066
3,910,000 Collier County Water-Sewer District (Florida), Water
and Sewer Revenue Bonds, Series 1991,
6.500%, 7/01/21 (Pre-refunded to 7/01/99) 7/99 at 102 AAA 4,054,748
7,000,000 Dade County Health Facilities Authority, Hospital
Revenue Refunding Bonds, Series 1992 (North Shore
Medical Center Project), 6.500%, 8/15/15 (Pre-refunded to 8/15/02) 8/02 at 102 AAA 7,784,770
2,205,000 City of Dunedin (Florida), Hospital Revenue Bonds
Series 1991 (Mease Health Care), 6.750%, 11/15/21
(Pre-refunded to 11/15/01) 11/01 at 102 AAA 2,435,489
1,000,000 State of Florida, Full Faith and Credit, Pollution Control
Bonds, Series Y, Division of Bond Finance of the
Department of General Services, 6.600%, 7/01/17
(Pre-refunded to 7/01/02) 7/02 at 101 AA+*** 1,103,700
2,750,000 State Board of Education of Florida, Public Education
Capital Outlay Bonds, Series 1991-C,
6.625%, 6/01/22 (Pre-refunded to 6/01/02) 6/02 at 101 Aaa 3,034,570
1,000,000 Hillsborough County, Florida, Capital Improvement,
Non-Ad Valorem Revenue Bonds (Museum of
Science and Industry Project), Series 1992,
6.450%, 1/01/22 (Pre-refunded to 1/01/00) 1/00 at 102 A*** 1,052,280
4,750,000 City of Hollywood, Florida, Water and Sewer
Revenue Bonds, Series 1991, 6.875%, 10/01/21
(Pre-refunded to 10/01/01) 10/01 at 102 AAA 5,248,228
4,625,000 Jacksonville Electric Authority (Jacksonville, Florida),
Bulk Power Supply System Revenue Bonds
(Scherer 4 Project, Issue One, Series 1991A),
6.750%, 10/01/21 (Pre-refunded to 10/01/00) 10/00 at 101 Aaa 4,960,590
2,750,000 Kissimmee Utility Authority (Florida), Electric System
Improvement and Refunding Revenue Bonds,
Series 1991, 6.500%, 10/01/17 (Pre-refunded to 10/01/01) 10/01 at 102 AAA 3,011,635
2,500,000 City of Leesburg, Florida, Capital Improvement Hospital
Revenue Bonds (Leesburg Regional Medical
Center Project) Series 1991A, 7.500%, 7/01/21
(Pre-refunded to 7/01/02) 7/02 at 102 A-*** 2,853,625
3,000,000 Orange County, Tourist Development Tax Revenue
Bonds, Series 1992A. 1992B, 6.500%, 10/01/19
(Pre-refunded to 10/01/02) 10/02 at 102 AAA 3,345,360
7,490,000 Orange County, Tourist Development Tax Revenue
Bonds, Series 1992A. 1992B, 6.000%, 10/01/21
(Pre-refunded to 10/01/02) 10/02 at 100 AAA 8,099,836
7,375,000 Orlando (Florida), Utilities Commission, Water and
Electric Subordinated Revenue Bonds, Series 1991A,
6.500%, 10/01/20 (Pre-refunded to 10/01/01) 10/01 at 102 Aaa 8,076,658
825,000 Solid Waste Authority of Palm Beach County,
Refunding Revenue Bonds, Series 1997A,
6.000%, 10/01/09 No Opt. Call AAA 955,985
11,000,000 Reedy Creek Improvement District (Florida), (Located in
Orange and Osceola Counties), Utilities
Revenue Bonds, Series 1991-1, 6.500%,
10/01/16 (Pre-refunded to 10/01/01) 10/01 at 101 AAA 11,946,660
5,000,000 City of St. Petersburg Health Facilities Authority
(Florida), Revenue Bonds, Series 1985 A (Allegany
Health System Loan Program), 7.000%, 12/01/15
(Pre-refunded to 12/01/01) 12/01 at 102 AAA 5,558,850
2,300,000 Sarasota County, Florida, Utility System Revenue
Bonds, Series 1994, 6.500%, 10/01/22
(Pre-refunded to 10/01/04) 10/04 at 102 AAA 2,649,761
2,000,000 The School Board of Seminole County, Florida,
Certificates of Participation, Series 1994A,
6.125%, 7/01/19 (Pre-refunded to 7/01/04) 7/04 at 102 AAA 2,257,640
1,000,000 City of Stuart, Florida, Public Utilities, Revenue
Improvement Bonds, Series 1994, 6.800%, 10/01/24
(Pre-refunded to 10/01/03) 10/03 at 100 AAA 1,131,270
3,000,000 City of Tampa, Florida, Revenue Bonds (The Florida
Aquarium Project), Series 1992, 7.750%, 5/01/27
(Pre-refunded to 5/01/02) 5/02 at 102 N/R*** 3,414,540
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 17.7%
10,000,000 Citrus County, Florida, Pollution Control Refunding
Revenue Bonds Series 1992A (Florida Power
Corporation Crystal River Power Plant Project), 6.625%, 1/01/27 1/02 at 102 A+ 10,810,700
5,000,000 Florida Gas Utility, Gas Project No. 1 Revenue
Bonds, Series 1998, 5.000%, 12/01/08 No Opt. Call AAA 5,349,600
5,830,000 Hillsborough County Industrial Development
Authority (Florida), Pollution Control Revenue Bonds
(Tampa Electric Company Project), Series 1991, 7.875%, 8/01/21 8/01 at 103 AA 6,540,677
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
UTILITIES (continued)
$ 9,800,000 Hillsborough County Industrial Development Authority,
Pollution Control Revenue Refunding Bonds
(Tampa Electric Company Project), Series 1992, 8.000%, 5/01/22 5/02 at 103 AA $ 11,247,068
5,000,000 Jacksonville Electric Authority Special Obligation
5th Crossover Series, 5.375%, 10/01/10 10/04 at 101 AA 5,295,750
Jacksonville Electric Authority (Jacksonville, Florida),
St. Johns River Power Park System Refunding
Revenue Bonds, Issue Two, Series Seven:
1,500,000 5.750%, 10/01/12 10/02 at 101 AA 1,595,580
2,000,000 5.500%, 10/01/14 10/02 at 101 AA 2,096,020
5,000,000 City of Lakeland, Florida, Electric and Water
Revenue Bonds, (Junior Subordinate Lien), Refunding
Series 1996, 6.500%, 10/01/09 No Opt. Call AAA 5,937,550
6,175,000 Solid Waste Authority of Palm Beach County,
Refunding Revenue Bonds, Series 1997A,
6.000%, 10/01/09 No Opt. Call AAA 7,097,545
2,500,000 St. Lucie County, Florida, Solid Waste Disposal
Revenue Bonds (Florida Power and Light Company
Project), Series 1991, 7.150%, 2/01/23 (Alternative Minimum Tax) 2/01 at 102 AA- 2,699,475
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 3.1%
2,190,000 Collier County Water-Sewer District (Florida),
Water and Sewer Revenue Bonds, Series 1991,
6.500%, 7/01/21 7/99 at 102 AAA 2,266,497
5,000,000 Town of Davie, Florida, Water and Sewer Improvement
and Refunding, Revenue Bonds, Series 1992,
6.250%, 10/01/17 10/02 at 102 AAA 5,475,799
1,500,000 Peace River/Manasota Regional Water Supply
Authority (Florida), Revenue Bonds (Peace River Option
Project), Series 1998A, 5.000%, 10/01/28 10/08 at 101 AAA 1,494,119
1,000,000 City of Venice, Florida, Utilities Revenue
Refunding Bonds, Series 1993, 5.500%, 7/01/14 7/03 at 102 AAA 1,068,539
- ------------------------------------------------------------------------------------------------------------------------------------
$ 306,839,000 Total Investments - (cost $305,001,419) - 99.0% 328,352,956
=============
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.0% 3,154,818
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 331,507,774
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient
U.S. government or U.S. government agency securities which ensures
the timely payment of principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis (note 1).
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN INSURED FLORIDA PREMIUM INCOME MUNICIPAL FUND (NFL)
DECEMBER 31, 1998
(UNAUDITED)
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 Revenue Bonds, Series 1992R
(Shands Hospital at the University of Florida Project),
5.750%, 12/01/15 12/02 at 100 AAA $ 2,650,450
2,000,000 Brevard County Health Facilities Authority, Hospital
Revenue Bonds, Series 1996 (Holmes Regional
Medical Center Project), 5.625%, 10/01/14 10/06 at 101 AAA 2,149,940
2,500,000 Hillsborough County Industrial Development Authority
(Florida), Industrial Development Revenue Bonds,
Series 1994 (University Community Hospital), 6.500%, 8/15/19 No Opt. Call AAA 3,014,950
5,000,000 Hospital Board of Directors of Lee County, Florida,
Hospital Revenue Bonds (Lee Memorial Health
System), Fixed Rate Hospital Revenue Bonds, 1997
Series A, 5.750%, 4/01/22 4/07 at 102 AAA 5,336,750
5,000,000 North Broward Hospital District (Florida), Refunding
and Improvement Revenue Bonds, Series 1997,
5.375%, 1/15/24 1/07 at 101 AAA 5,128,600
5,785,000 Polk County Industrial Development Authority,
Industrial Development Variable Rate Revenue Bonds,
1985 Series 2 (Winter Haven Hospital Project), 6.250%, 9/01/15 9/02 at 103 AAA 6,351,930
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 7.5%
2,575,000 Housing Finance Authority of Broward County, Florida,
Multifamily Housing Revenue Refunding Bonds
(Deer Chase Apartments Project-GNMA Collateralized),
Series 1997 A-1, 5.950%, 11/01/27 5/07 at 102 AAA 2,738,255
1,000,000 Housing Finance Authority of Broward County, Florida,
Multifamily Housing Revenue Refunding Bonds
(Pompano Oaks Apartments Project-GNMA
Collateralized), Series 1997, 6.000%, 12/01/27
(Alternative Minimum Tax) 6/07 at 102 AAA 1,067,820
1,040,000 Housing Finance Authority of Collier County, Florida
Multifamily Housing Revenue Refunding Bonds,
Series 1998A, Subseries 1 (Saxon Manor Isles Project),
5.350%, 9/01/18 (Alternative Minimum Tax) 3/08 at 101 AAA 1,057,878
1,400,000 Housing Finance Authority of Collier County, Florida
Multifamily Housing Revenue Refunding Bonds,
Series 1998A, Subseries 1 (Saxon Manor Isles
Project), 5.400%, 9/01/23 (Alternative Minimum Tax) 3/08 at 101 AAA 1,423,996
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 1,281,659
1,000,000 5.400%, 9/01/23 (Alternative Minimum Tax) 3/08 at 101 AAA 1,017,140
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 1,280,073
1,690,000 5.700%, 9/01/22 (Alternative Minimum Tax) 9/07 at 101 AAA 1,758,648
1,890,000 5.750%, 9/01/29 (Alternative Minimum Tax) 9/07 at 101 AAA 1,966,583
1,400,000 Florida Housing Finance Agency, Housing Revenue
Bonds, 1997 Series A (Riverfront Apartments
Project), 6.250%, 4/01/37 (Alternative Minimum Tax) 4/07 at 102 AAA 1,513,204
1,590,000 Florida Housing Finance Agency, Housing Revenue
Bonds, 1995 Series E (Williamsburg Village
Apartments Project), 6.100%, 12/01/20 (Alternative Minimum Tax) 12/05 at 102 AAA 1,699,169
1,000,000 Florida Housing Finance Agency, Housing Revenue
Bonds, 1996 Series C1 (Turtle Creek Apartments
Project), 6.100%, 5/01/16 (Alternative Minimum Tax) 5/06 at 102 AAA 1,071,910
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 1,082,530
1,500,000 6.400%, 12/01/26 (Alternative Minimum Tax) 6/06 at 102 AAA 1,630,995
750,000 Florida Housing Finance Agency, Housing Revenue
Bonds, 1996 Series V (The Crossings at Indian Run
Apartments Project), 6.100%, 12/01/26
(Alternative Minimum Tax) 12/06 at 102 AAA 802,343
3,605,000 City of Jacksonville, Florida, Housing Revenue
Refunding Bonds, Series 1993A (GNMA Collateralized-
Windermere Manor Apartments Project), 5.875%, 3/20/28 9/03 at 102 AAA 3,755,689
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING/SINGLE FAMILY - 3.8%
$ 5,050,000 Duval County Housing Finance Authority, Single
Family Mortgage Revenue Bonds (GNMA
Mortgage-Backed Securities Program),
Series 1994, 6.700%, 10/01/26 (Alternative Minimum Tax) 10/04 at 102 Aaa $ 5,431,629
2,875,000 Escambia County Housing Finance Authority (Florida),
Single Family Mortgage Revenue Bonds,
Series 1992A (Multi-County Program), 6.900%, 4/01/20
(Alternative Minimum Tax) 10/02 at 102 Aaa 3,039,421
3,970,000 Florida Housing Finance Agency, Homeowner
Mortgage Revenue Bonds, 1997 Series 2,
5.750%, 7/01/14 (Alternative Minimum Tax) 7/07 at 102 AAA 4,181,085
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 6.8%
Dade County, Florida, Public Improvement
Bonds (Series I) (General Obligation Bonds):
4,000,000 6.900%, 7/01/01 No Opt. Call AAA 4,314,600
5,125,000 6.900%, 7/01/04 No Opt. Call AAA 5,885,806
2,000,000 Dade County, Florida, General Obligation
Bonds (Parks Program), Series 1997, 5.125%, 11/01/22 11/07 at 102 AAA 2,006,460
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 5,116,850
3,500,000 5.000%, 8/01/14 8/03 at 101 AAA 3,543,855
2,000,000 The City of Miami, Florida, General Obligation Bonds,
Series 1995 (Sanitary Sewer System),
5.400%, 1/01/12 1/03 at 101 AAA 2,114,080
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 17.1%
3,500,000 State of Florida, Department of Environmental
Protection, Preservation 2000 Revenue Bonds,
Series 1994A, 4.900%, 7/01/13 7/04 at 101 AAA 3,543,120
4,500,000 State of Florida, Department of Environmental
Protection, Preservation 2000 Revenue Bonds,
Series 1995A, 5.750%, 7/01/11 7/05 at 101 AAA 4,898,070
2,100,000 Gulf Breeze Local Government Loan Program Bonds,
Remarketed Series 1985B, 5.900%, 12/01/15 12/06 at 101 AAA 2,280,097
1,400,000 Hernando County, Florida, Capital Improvement
Refunding Revenue Bonds, Series 1993,
5.750%, 2/01/14 2/03 at 102 AAA 1,509,214
1,025,000 Jacksonville Sales Tax Revenue Bonds, Series 1995
(River City Renaissance Project), 5.500%, 10/01/10 10/05 at 101 AAA 1,108,271
5,000,000 The School Board of Miami-Dade County, Florida,
Certificates of Participation, Series 1998C
(Refunding), 5.000%, 8/01/25 8/08 at 101 AAA 4,945,400
10,235,000 School Board of Okaloosa County, Florida,
Sales Tax Revenue Bonds, Series 1995, 6.000%, 9/01/99 No Opt. Call AAA 10,440,826
1,000,000 City of Opa-Locka, Florida, Capital Improvement
Revenue Bonds, Series 1994, 7.000%, 1/01/14 1/04 at 102 AAA 1,145,500
6,000,000 Orange County, Tourist Development Tax Revenue
Bonds, Series 1992A, 6.250%, 10/01/13 10/02 at 102 AAA 6,566,160
2,310,000 Orange County, Florida, Tourist Development Tax
Refunding Revenue Bonds, Series 1997,
6.000%, 10/01/07 No Opt. Call AAA 2,627,995
Palm Beach County, Florida, Administrative Complex
Revenue Refunding Bonds, Series 1993:
1,265,000 5.200%, 6/01/06 No Opt. Call AAA 1,355,764
6,500,000 5.250%, 6/01/11 No Opt. Call AAA 7,050,550
Palm Beach County, Florida, Criminal Justice Facilities,
Revenue Refunding Bonds, Series 1993:
3,000,000 5.375%, 6/01/08 No Opt. Call AAA 3,297,930
4,000,000 5.375%, 6/01/10 No Opt. Call AAA 4,392,560
2,335,000 Pasco County, Florida, Gas Tax Refunding
Revenue Bonds, Series 1992, 5.750%, 8/01/13 8/02 at 102 AAA 2,510,265
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 18.5%
3,000,000 Dade County, Florida, Aviation Revenue Refunding
Bonds (Series Y), 5.500%, 10/01/11 10/03 at 102 AAA 3,240,810
Dade County, Florida, Seaport Revenue
Refunding Bonds, Series 1995:
1,000,000 6.200%, 10/01/05 No Opt. Call AAA 1,132,230
1,100,000 5.750%, 10/01/15 10/05 at 102 AAA 1,193,940
State of Florida, Department of Transportation,
Turnpike Revenue Bonds, Series 1995A:
10,000,000 5.500%, 7/01/13 7/05 at 101 AAA 10,637,200
3,000,000 5.500%, 7/01/21 7/05 at 101 AAA 3,131,940
2,000,000 State of Florida, Department of Transportation,
Turnpike Revenue Bonds, Series 1998B,
5.250%, 7/01/13 7/08 at 101 AAA 2,115,840
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TRANSPORTATION (continued)
$ 2,000,000 Greater Orlando Aviation Authority, Airport Facilities,
Revenue Bonds, Series 1992A, 6.375%, 10/01/21
(Alternative Minimum Tax) 10/02 at 102 AAA $ 2,178,800
Greater Orlando Aviation Authority, Airport Facilities
Revenue Bonds, of the City of Orlando, Florida,
Series 1997:
1,000,000 5.125%, 10/01/17 (Alternative Minimum Tax) 10/07 at 101 AAA 1,012,460
4,795,000 5.250%, 10/01/23 (Alternative Minimum Tax) 10/07 at 101 AAA 4,823,962
6,000,000 Hillsborough County Aviation Authority, Florida,
Tampa International Airport Revenue Refunding Bonds,
1993 Series B, 5.600%, 10/01/19 10/03 at 102 AAA 6,292,860
1,000,000 Hillsborough County Aviation Authority, Florida,
Tampa International Airport Revenue Bonds,
1993 Series D, 5.375%, 10/01/23 (Alternative Minimum Tax) 10/03 at 102 AAA 1,014,030
6,000,000 Hillsborough County Aviation Authority, Florida,
Tampa International Airport Revenue Bonds,
Series 1996B, 5.700%, 10/01/15 10/06 at 102 AAA 6,537,600
2,350,000 Jacksonville Port Authority, Airport Revenue Refunding
Bonds, Series 1993, 5.250%, 10/01/17
(Alternative Minimum Tax) 10/03 at 102 AAA 2,389,457
1,000,000 Jacksonville Port Authority (Jacksonville, Florida), 1993 Port
Facilities Revenue Refunding Bonds,
7.625%, 11/01/07 11/03 at 102 AAA 1,179,650
3,800,000 Jacksonville Port Authority (Jacksonville, Florida), 1996 Port
Facilities Revenue Refunding Bonds,
5.625%, 11/01/18 (Alternative Minimum Tax) 11/06 at 102 AAA 3,980,918
1,000,000 State of Florida, Orlando-Orange County Expressway
Authority, Junior Lien Revenue Bonds,
Series of 1998, 5.000%, 7/01/21 7/08 at 101 AAA 996,650
5,550,000 Palm Beach County, Florida, Airport System Revenue
Refunding Bonds, Series 1991, 7.625%, 10/01/04 10/01 at 102 AAA 6,216,833
1,000,000 City of Pensacola, Florida, Airport Revenue Bonds,
Series 1997A, 5.600%, 10/01/17 10/07 at 102 AAA 1,074,060
3,000,000 Sarasota-Manatee Airport Authority, Airport System
Revenue Refunding Bonds, Series 1996,
5.375%, 8/01/11 8/06 at 102 AAA 3,243,420
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 17.5%
3,750,000 Broward County Health Facilities Authority (Florida),
Hospital Revenue Bonds (Holy Cross Hospital, Inc.),
Series 1993, 5.850%, 6/01/12 6/03 at 102 AAA 4,132,613
3,000,000 Florida Municipal Power Agency, All-Requirements Power
Supply Project Revenue Bonds, Series 1992,
6.250%, 10/01/21 (Pre-refunded to 10/01/02) 10/02 at 102 AAA 3,322,680
Florida Municipal Power Agency, Stanton II
Project Revenue Bonds, Series 1992:
4,000,000 6.500%, 10/01/20 (Pre-refunded to 10/01/02) 10/02 at 102 AAA 4,465,000
6,625,000 6.000%, 10/01/27 (Pre-refunded to 10/01/02) 10/02 at 102 AAA 7,280,080
2,000,000 State of Florida, Department of Transportation,
Turnpike Revenue Bonds, Series 1991A,
7.000%, 7/01/04 (Pre-refunded to 7/01/01) 7/01 at 102 AAA 2,201,080
3,995,000 State of Florida, Department of Transportation,
Turnpike Revenue Bonds, Series 1992A,
6.350%, 7/01/22 (Pre-refunded to 7/01/02) 7/02 at 101 AAA 4,380,917
930,000 Orange County, Florida, Water Utilities System
Revenue Bonds, Series 1992, 6.250%, 10/01/17
(Pre-refunded to 4/01/02) 4/02 at 102 AAA 1,020,098
City of Palm Bay, Florida, Utility System Refunding
Revenue Bonds, Series 1994 (Palm Bay
Utility Corporation Project):
1,000,000 6.200%, 10/01/17 (Pre-refunded to 10/01/02) 10/02 at 102 AAA 1,105,820
3,295,000 6.200%, 10/01/22 (Pre-refunded to 10/01/02) 10/02 at 102 AAA 3,643,677
475,000 Solid Waste Authority of Palm Beach County,
Refunding Revenue Bonds, Series 1997A,
6.000%, 10/01/09 No Opt. Call AAA 550,416
1,000,000 City of Port St. Lucie, Florida, Utility System Revenue
Bonds, Series 1994, 6.000%, 9/01/24
(Pre-refunded to 9/01/04) 9/04 at 100 AAA 1,109,110
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 5,432,250
1,200,000 5.500%, 10/01/21 10/03 at 102 AAA 1,306,860
<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 $ 7,743,249
8,700,000 5.750%, 10/01/21 (Pre-refunded to 10/01/06) 10/06 at 101 AAA 9,763,227
1,500,000 City of Tampa, Florida, Allegany Health System
Revenue Bonds, St. Josephs Hospital, Inc. Issue,
Series 1993, 5.125%, 12/01/23 12/03 at 102 AAA 1,517,910
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.0%
1,250,000 Florida Municipal Power Agency, St. Lucie Project
Refunding Revenue Bonds, Series 1992,
5.250%, 10/01/21 10/02 at 102 AAA 1,266,913
1,500,000 Florida Municipal Power Agency, Tri-City Project
Refunding Revenue Bonds, Series 1992,
5.500%, 10/01/19 10/03 at 100 AAA 1,560,465
City of Lakeland, Florida, Electric and Water Revenue
Bonds (Junior Subordinate Lien), Refunding
and Improvement Series 1996B:
4,785,000 6.000%, 10/01/08 No Opt. Call AAA 5,505,143
4,000,000 6.000%, 10/01/09 No Opt. Call AAA 4,612,920
3,525,000 Solid Waste Authority of Palm Beach County,
Refunding Revenue Bonds, Series 1997A,
6.000%, 10/01/09 No Opt. Call AAA 4,051,635
10,000,000 Reedy Creek Improvement District (Florida), Utilities
Revenue Improvement and Refunding Bonds,
Series 1994-1, 5.000%, 10/01/19 10/04 at 101 AAA 9,929,000
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.2%
1,000,000 City of Cocoa, Florida, Water and Sewer System
Refunding Revenue Bonds, Series 1993A,
5.000%, 10/01/23 10/03 at 100 AAA 995,000
2,700,000 City of Cocoa, Florida, Water and Sewer System
Improvement Revenue Bonds, Series 1997,
5.875%, 10/01/26 10/07 at 101 AAA 2,930,445
Dade County, Florida, Water and Sewer System
Revenue Bonds, Series 1995:
500,000 6.250%, 10/01/10 No Opt. Call AAA 587,490
3,730,000 5.750%, 10/01/22 10/05 at 102 AAA 3,992,816
2,000,000 The City of Daytona Beach, Florida, Water and Sewer
Revenue Bonds, Series 1992, 5.500%, 11/15/17 11/02 at 100 AAA 2,093,460
2,000,000 Hillsborough County, Florida, Refunding Utility
Revenue Bonds, Series 1991A, 6.625%, 8/01/11 8/02 at 102 AAA 2,168,620
8,000,000 Indian River County, Florida, Water and Sewer Revenue
Bonds, Series 1993A, 5.250%, 9/01/24 9/08 at 100 AAA 8,206,640
2,000,000 Indian Trail Water Control District, Water Control and
Improvement Bonds, Unit of Development 8/07 at 101 AAA 2,102,519
No. 17, Series 1996, 5.500%, 8/01/22
1,070,000 Orange County, Florida, Water Utilities System Revenue
Bonds, Series 1992, 6.250%, 10/01/17 4/02 at 102 AAA 1,162,105
2,250,000 City of Port Orange, Florida, Water and Sewer Refunding
Junior Lien Revenue Bonds, Series 1993,
5.250%, 10/01/21 10/03 at 101 AAA 2,287,507
11,385,000 Seminole County, Florida, Water and Sewer Revenue
Refunding and Improvement Bonds, Series 1992,
6.000%, 10/01/19 No Opt. Call AAA 13,042,541
1,300,000 City of Sunrise, Florida, Utility System Revenue
Refunding Bonds, Series 1996, 5.800%, 10/01/11 10/06 at 102 AAA 1,452,190
- ------------------------------------------------------------------------------------------------------------------------------------
$ 309,365,000 Total Investments - (cost $307,413,105) - 98.7% 332,401,076
============
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 4,367,957
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 336,769,033
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS
DECEMBER 31, 1998
(UNAUDITED)
FLORIDA FLORIDA INSURED FLORIDA
INVESTMENT QUALITY QUALITY INCOME PREMIUM INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C> <C> <C>
Investments in municipal securities, at market value (note 1) $364,929,095 $328,352,956 $332,401,076
Temporary investments in short-term municipal securities
at amortized cost, which approximates market value (note 1) 1,000,000 -- --
Cash 21,338 3,504 --
Receivables:
Interest 6,273,515 5,432,460 5,249,649
Investments sold 190,506 7,463,500 15,000
Other assets 11,604 24,060 6,298
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 372,426,058 341,276,480 337,672,023
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased 6,173,507 9,380,500 --
Accrued expenses:
Management fees (note 6) 198,411 180,206 183,025
Other 401,268 208,000 719,965
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 6,773,186 9,768,706 902,990
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets (note 7) $365,652,872 $331,507,774 $336,769,033
====================================================================================================================================
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 16,302,225 14,122,954 14,290,929
====================================================================================================================================
Net asset value per Common share outstanding (net assets less Preferred
shares at liquidation value, divided by Common shares outstanding) $ 15.68 $ 16.04 $ 15.80
====================================================================================================================================
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1998
(UNAUDITED)
FLORIDA FLORIDA INSURED FLORIDA
INVESTMENT QUALITY QUALITY INCOME PREMIUM INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME (NOTE 1) $10,903,150 $9,376,971 $ 8,604,484
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees (note 6) 1,176,475 1,067,815 1,080,733
Preferred shares - auction fees 138,629 132,329 139,890
Preferred shares - dividend disbursing agent fees 10,081 15,123 10,081
Shareholders' servicing agent fees and expenses 19,462 17,855 17,704
Custodian's fees and expenses 32,062 27,436 27,385
Trustees' fees and expenses (note 6) 1,770 1,592 1,584
Professional fees 9,091 9,033 9,220
Shareholders' reports - printing and mailing expenses 45,531 39,668 36,287
Stock exchange listing fees 12,442 12,243 12,230
Investor relations expense 15,084 13,403 12,983
Other expenses 10,377 11,562 10,011
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses 1,471,004 1,348,059 1,358,108
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 9,432,146 8,028,912 7,246,376
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN FROM INVESTMENTS
Net realized gain from investment transactions (notes 1 and 4) 172,501 284,503 18,966
Net change in unrealized appreciation or depreciation of investments 674,081 682,295 4,214,060
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 846,582 966,798 4,233,026
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $10,278,728 $8,995,710 $11,479,402
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
(UNAUDITED)
FLORIDA INVESTMENT QUALITY FLORIDA QUALITY INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
12/31/98 6/30/98 12/31/98 6/30/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 9,432,146 $ 19,242,210 $ 8,028,912 $ 16,286,684
Net realized gain from investment transactions
(notes 1 and 4) 172,501 1,445,856 284,503 529,659
Net change in unrealized appreciation or depreciation
of investments 674,081 1,894,167 682,295 3,903,180
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 10,278,728 22,582,233 8,995,710 20,719,523
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From undistributed net investment income:
Common shareholders (7,943,459) (16,014,948) (6,343,596) (13,003,066)
Preferred shareholders (1,549,086) (3,508,271) (1,537,676) (3,521,372)
From accumulated net realized gains from
investment transactions:
Common shareholders (404,295) (1,184,749) -- --
Preferred shareholders (61,006) (261,895) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (9,957,846) (20,969,863) (7,881,272) (16,524,438)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions 577,101 1,305,685 420,437 895,866
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 897,983 2,918,055 1,534,875 5,090,951
Net assets at beginning of period 364,754,889 361,836,834 329,972,899 324,881,948
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $365,652,872 $364,754,889 $331,507,774 $329,972,899
====================================================================================================================================
Balance of undistributed net investment income
at end of period $ 548,344 $ 608,743 $ 466,883 $ 319,243
====================================================================================================================================
<CAPTION>
INSURED FLORIDA PREMIUM INCOME
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
12/31/98 6/30/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 7,246,376 $ 14,614,190
Net realized gain from investment transactions (notes 1 and 4) 18,966 922,944
Net change in unrealized appreciation or depreciation of investments 4,214,060 10,603,825
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 11,479,402 26,140,959
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From undistributed net investment income:
Common shareholders (5,359,105) (11,163,589)
Preferred shareholders (1,734,523) (3,652,637)
From accumulated net realized gains from investment transactions:
Common shareholders -- -
Preferred shareholders -- -
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (7,093,628) (14,816,226)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 4,385,774 11,324,733
Net assets at beginning of period 332,383,259 321,058,526
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $336,769,033 $332,383,259
====================================================================================================================================
Balance of undistributed net investment income at end of period $ 344,970 $ 192,222
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
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
December 31, 1998, Florida Investment Quality and Florida Quality Income had
outstanding when-issued purchase commitments of $6,173,507 and $9,380,500,
respectively. There were no such outstanding purchase commitments in Insured
Florida Premium Income.
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. 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 as a dividend monthly 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.
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
==============================================================
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 six months ended December 31, 1998.
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.
2. FUND SHARES
Transactions in Common shares were as follows:
<TABLE>
<CAPTION>
FLORIDA INVESTMENT QUALITY FLORIDA QUALITY INCOME
- ----------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
12/31/98 6/30/98 12/31/98 6/30/98
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment
of distributions 32,808 75,800 25,359 55,194
========================================================================================
<CAPTION>
INSURED FLORIDA
PREMIUM INCOME
- ----------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
12/31/98 6/30/98
- ----------------------------------------------------------------------------------------
<S> <C> <C>
Shares issued to shareholders
due to reinvestment
of distributions -- --
========================================================================================
</TABLE>
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid February 1, 1999, to shareholders of record on
January 15, 1999, as follows:
INSURED
FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM
QUALITY INCOME INCOME
- -------------------------------------------------------------------
Dividend per share $ .0790 $ .0745 $ .0625
===================================================================
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the six months ended
December 31, 1998, were as follows:
INSURED
FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM
QUALITY INCOME INCOME
- --------------------------------------------------------------------------------
Purchases:
Investments in municipal securities $35,344,498 $35,586,552 $4,875,000
Temporary municipal investments 29,830,000 30,730,000 8,400,000
Sales and Maturities:
Investments in municipal securities 28,731,200 30,790,763 4,999,272
Temporary municipal investments 32,530,000 33,030,000 8,400,000
================================================================================
At December 31, 1998, 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, 1998, the Funds` last fiscal year end, 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 $ 890,389 $1,116,161
2003 95,170 555,689
2004 142,676 461,823
2005 -- 261,244
- --------------------------------------------------------------------------------
Total $1,128,235 $2,394,917
================================================================================
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at December 31, 1998, were as follows:
INSURED
FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM
QUALITY INCOME INCOME
- -------------------------------------------------------------------------------
Gross unrealized:
appreciation $27,441,553 $23,480,737 $24,987,971
depreciation (20,958) (129,200) --
- -------------------------------------------------------------------------------
Net unrealized appreciation $27,420,595 $23,351,537 $24,987,971
===============================================================================
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 asset value of each Fund:
AVERAGE DAILY NET ASSET VALUE 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 December 31, 1998, 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 163,022 141,230 142,909
Paid-in surplus 227,510,784 203,414,581 202,667,966
Balance of undistributed net investment income 548,344 466,883 344,970
Accumulated net realized gain (loss) from investment transactions 10,127 (866,457) (2,374,783)
Net unrealized appreciation of investments 27,420,595 23,351,537 24,987,971
- --------------------------------------------------------------------------------------------------------------
Net assets $365,652,872 $331,507,774 $336,769,033
- --------------------------------------------------------------------------------------------------------------
Authorized shares:
Common Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited
==============================================================================================================
</TABLE>
<PAGE>
<TABLE>
Financial Highlights
FINANCIAL HIGHLIGHTS
(UNAUDITED)
Selected data for a Common share outstanding throughout
each period is as follows:
<CAPTION>
INVESTMENT OPERATIONS
----------------------------------------
NET
REALIZED/
BEGINNING NET UNREALIZED
NET ASSET INVESTMENT INVESTMENT
VALUE INCOME GAIN (LOSS) TOTAL
FLORIDA INVESTMENT QUALITY
<S> <C> <C> <C> <C>
Year Ended 6/30:
1999 (a) $15.66 $ .58 $ .05 $ .63
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
1994 16.03 1.22 (.88) .34
<CAPTION>
FLORIDA QUALITY INCOME
<S> <C> <C> <C> <C>
Year Ended 6/30:
1999 (a) 15.96 .57 .07 .64
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
1994 15.78 1.19 (1.08) .11
<CAPTION>
INSURED FLORIDA PREMIUM INCOME
<S> <C> <C> <C> <C>
Year Ended 6/30:
1999 (a) 15.49 .51 .30 .81
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
1994 14.54 1.03 (1.49) (.46)
<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
FLORIDA INVESTMENT QUALITY
Year Ended 6/30:
<S> <C> <C> <C> <C> <C>
1999 (a) $ (.49) $(.10) $(.02) $ -- $ (.61)
1998 (.99) (.22) (.07) (.02) (1.30)
1997 (.97) (.22) -- -- (1.19)
1996 (.99) (.25) -- -- (1.24)
1995 (1.00) (.28) (.02) -- (1.30)
1994 (1.00) (.24) (.02) -- (1.26)
<CAPTION>
FLORIDA QUALITY INCOME
<S> <C> <C> <C> <C> <C>
Year Ended 6/30:
1999 (a) (.45) (.11) -- -- (.56)
1998 (.92) (.25) -- -- (1.17)
1997 (.92) (.25) -- -- (1.17)
1996 (.93) (.28) -- -- (1.21)
1995 (.94) (.29) -- -- (1.23)
1994 (.96) (.24) -- -- (1.20)
<CAPTION>
INSURED FLORIDA PREMIUM INCOME
<S> <C> <C> <C> <C> <C>
Year Ended 6/30:
1999 (a) (.38) (.12) -- -- (.50)
1998 (.78) (.26) -- -- (1.04)
1997 (.78) (.25) -- -- (1.03)
1996 (.78) (.26) -- -- (1.04)
1995 (.79) (.28) -- -- (1.07)
1994 (.81) (.18) -- -- (.99)
<PAGE>
<CAPTION>
TOTAL RETURNS
------------------------------
ENDING
NET ASSET ENDING BASED ON BASED ON NET
VALUE MARKET VALUE MARKET VALUE** ASSET VALUE**
FLORIDA INVESTMENT QUALITY
Year Ended 6/30:
<S> <C> <C> <C> <C>
1999 (a) $15.68 $17.6250 5.16% 3.42%
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
1994 15.11 15.1250 (3.16) .45
<CAPTION>
FLORIDA QUALITY INCOME
<S> <C> <C> <C> <C>
Year Ended 6/30:
1999 (a) 16.04 17.1875 9.07 3.35
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
1994 14.69 14.0000 (4.63) (1.02)
<CAPTION>
INSURED FLORIDA PREMIUM INCOME
<S> <C> <C> <C> <C>
Year Ended 6/30:
1999 (a) 15.80 15.8125 14.27 4.45
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
1994 13.09 12.8750 (7.45) (4.75)
<PAGE>
<CAPTION>
RATIOS/SUPPLEMENTAL DATE
------------------------------------------------------------------------------------------------
RATIO OF NET RATIO OF NET
RATIO OF INVESTMENT RATIO OF INVESTMENT
EXPENSES TO INCOME TO EXPENSES TO INCOME TO
AVERAGE AVERAGE AVERAGE TOTAL AVERAGE TOTAL
ENDING NET ASSETS NET ASSETS NET ASSETS NET ASSETS PORTFOLIO
NET ASSETS APPLICABLE TO APPLICABLE TO INCLUDING INCLUDING TURNOVER
(000) COMMON SHARES++ COMMON SHARES++ PREFERRED++ PREFERRED++ RATE
FLORIDA INVESTMENT QUALITY
<S> <C> <C> <C> <C> <C> <C>
Year Ended 6/30:
1999 (a) $365,653 1.14%* 7.31%* .80%* 5.11%* 8%
1998 364,755 1.14 7.55 .80 5.27 9
1997 361,837 1.15 7.87 .80 5.46 4
1996 355,708 1.15 7.89 .80 5.47 20
1995 357,534 1.18 8.21 .81 5.64 3
1994 351,892 1.16 7.66 .81 5.35 4
<CAPTION>
FLORIDA QUALITY INCOME
<S> <C> <C> <C> <C> <C> <C>
Year Ended 6/30:
1999 (a) 331,508 1.18* 7.03* .81* 4.81* 10
1998 329,973 1.18 7.26 .81 4.95 10
1997 324,882 1.20 7.63 .81 5.15 22
1996 319,015 1.22 7.64 .82 5.14 19
1995 319,351 1.29 8.05 .86 5.38 8
1994 260,187 1.22 7.60 .84 5.21 5
<CAPTION>
INSURED FLORIDA PREMIUM INCOME
<S> <C> <C> <C> <C> <C> <C>
Year Ended 6/30:
1999 (a) 336,769 1.20* 6.40* .80* 4.28* 1
1998 332,383 1.21 6.69 .80 4.44 11
1997 321,059 1.24 7.08 .81 4.60 21
1996 312,553 1.25 7.18 .81 4.66 26
1995 309,516 1.38 7.80 .88 4.95 5
1994 189,622 1.30 7.17 .85 4.67 17
* Annualized.
** 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.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the six months ended December 31, 1998.
</TABLE>
<PAGE>
Building a Better Portfolio
Can Make You a Successful Investor
NUVEEN FAMILY
OF MUTUAL FUNDS
Nuveen offers a variety of funds designed to help you reach your financial
goals.
GROWTH
Nuveen Rittenhouse Growth Fund
GROWTH AND
INCOME
European Value Fund
Growth and
Income Stock Fund
Balanced Stock
and Bond Fund
Balanced Municipal
and Stock Fund
TAX-FREE INCOME
NATIONAL FUNDS
Long-Term
Insured
Intermediate-Term
Limited-Term
STATE FUNDS
Arizona
California
Colorado
Connecticut
Florida
Georgia
Kansas
Kentucky
Louisiana
Maryland
Massachusetts
Michigan
Missouri
New Jersey
New Mexico
New York
North Carolina
Ohio
Pennsylvania
Tennessee
Virginia
Wisconsin
Successful investors know that a well-diversified portfolio - one that balances
different types of investments, levels of risk and tax management - can be the
foundation for building and sustaining wealth. That's why Nuveen offers you and
your financial adviser a wide range of quality investments that can help you
build a better portfolio in the pursuit of your financial goals
Exchange-Traded Funds
Nuveen Exchange-Traded Funds offer investors actively managed portfolios of
investment-grade quality municipal bonds. The fund shares are listed and traded
on the New York and American stock exchanges. Exchange-traded funds provide the
investment convenience, price visibility and liquidity of common stocks.
MuniPreferred(R)
Nuveen MuniPreferred offers investors a AAA rated investment with an attractive
tax-free yield for the cash reserves portion of an investment portfolio.
MuniPreferred shares are backed 2-to-1 by the long-term portfolios of Nuveen
dual-class exchange-traded funds and are available for national as well as a
wide variety of state-specific portfolios.
Mutual Funds
Nuveen offers a family of equity, balanced and municipal bond funds featuring
Premier AdvisersSM including Institutional Capital Corporation, Rittenhouse
Financial Services, and Nuveen Advisory Corp. Each brings a specialized
expertise in a particular investment style or asset class, time-tested
investment strategies and a focus on consistent, long-term performance. With
Nuveen's Premier Adviser funds, you have all the advantages of a family of funds
PLUS the benefits of specialized investment expertise.
Private Asset Management
Rittenhouse Financial Services and Nuveen Asset Management offer comprehensive,
customized investment management solutions to investors with assets of $250,000
or more to invest. A range of actively managed growth, balanced and municipal
income-oriented portfolios are available, all based upon a disciplined
investment philosophy.
Defined Portfolios
Nuveen Defined Portfolios are fixed portfolios of quality securities that are a
convenient, attractive alternative to purchasing individual securities. They
provide low-cost diversification to reduce risk, while also offering
experienced, professional security selection and surveillance. In addition,
Nuveen Defined Portfolios provide daily liquidity at that day's net asset value
for quick access to your assets.
<PAGE>
Fund Information
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Anthony T. Dean
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, our trading, fund management and pricing systems at
Nuveen - the systems that directly affect our investors and their financial
advisers - have been updated or replaced to address the Year 2000 concerns. We
continue to work closely with our transfer agent, custodian and other service
partners to monitor readiness and address other remaining systems issues. Our
initial testing indicates we are on schedule, and we have targeted year-end 1998
to complete verification of vendor compliance and service partner readiness.
However, we can give no complete assurance at this time that the steps we have
taken will be sufficient to prevent any problems that would impact the Nuveen
Exchange-Traded Funds.
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 six-months ended December 31, 1998. 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.
GRAPHIC:
1898 - 1998
NUVEEN
OUR SECOND CENTURY
helping investors sustain the wealth of a lifetime(tm)
John Nuveen &Co. Incorporated
333 West Wacker Drive
Chicago, IL60606-1286
www.nuveen.com
FSA-1-12-98
