LOGO: NUVEEN
NUVEEN Investment
ANNUAL REPORT June 30, 2000
Exchange-Traded Funds
Dependable, tax-free income to help
you keep more of what you earn.
FLORIDA
NQF
NUF
NFL
Photo of: WATER
Photo of: MAN AND TWO CHILDREN
INVEST WELL.
LOOK AHEAD.
LEAVE YOUR MARK.sm
<PAGE>
Credit Quality
HIGHLIGHTS As of June 30, 2000
NUVEEN FLORIDA INVESTMENT QUALITY MUNICIPAL FUND (NQF)
Pie Chart:
AAA/U.S. Guaranteed 73%
AA 20%
A 2%
BBB 2%
NR 3%
NUVEEN FLORIDA QUALITY INCOME MUNICIPAL FUND (NUF)
Pie Chart:
AAA/U.S. Guaranteed 69%
AA 14%
A 11%
BBB 3%
NR 3%
NUVEEN INSURED FLORIDA PREMIUM INCOME MUNICIPAL FUND (NFL)
Pie Chart:
Insured & U.S. Guaranteed 17%
Insured 83%
CONTENTS
1 Dear Shareholder
3 Portfolio Manager's Comments
6 NQF Performance Overview
7 NUF Performance Overview
8 NFL Performance Overview
9 Report of Independent Auditors
10 Portfolio of Investments
22 Statement of Net Assets
23 Statement of Operations
24 Statement of Changes in Net Assets
25 Notes to Financial Statements
30 Financial Highlights
32 Build Your Wealth Automatically
33 Fund Information
<PAGE>
Dear
SHAREHOLDER
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Sidebar text:
"BUILDING AND SUSTAINING WEALTH REQUIRES SOUND, ONGOING ADVICE."
The primary objective of your Nuveen Municipal Exchange-Traded Fund is to
provide dependable, attractive tax-free dividends. I am very happy to report
that your Fund continued to achieve this goal during the period covered by this
report. For more specifics on this performance, I encourage you to read the
Portfolio Manager's Comments and Performance Overview pages that follow this
letter.
We believe that your Nuveen Exchange-Traded Fund, as an income-oriented
investment, is well positioned to be a core element of your long-term investment
program. With the help of your financial advisor, all of us at Nuveen
Investments are dedicated to providing the services, products, perspectives, and
solutions that you need to help you meet your personal and family goals.
NEW WAYS TO THINK ABOUT WEALTH
Over the past few years, much attention has been directed toward the ways
investors are accumulating wealth. At Nuveen, we believe it is equally important
for investors to focus on preserving that wealth, on the responsibilities that
accompany wealth, and on the legacies we will leave for future generations.
This long-term perspective is key to understanding our portfolio management
strategies, our insistence on quality, and our determination to provide
investments that can withstand the test of time. It is a philosophy that we
think is well encapsulated in our brand theme: Invest Well. Look Ahead. Leave
Your Mark.
INVEST WELL
Building and sustaining the wealth that can result in lasting legacies requires
a well-developed plan, sound ongoing advice, and the discipline to remain
focused on long-term results. With today's abundance of investment products and
offers, it also increasingly requires an experienced and trusted advisor who can
guide you through the opportunities and the pitfalls. With so much potentially
at stake, Nuveen Investments is dedicated to delivering quality products like
your Nuveen Fund through the financial advisors who assist you in making wise
investment choices and help you manage your most important financial assets.
<PAGE>
Sidebar text:
"WE BELIEVE YOUR NUVEEN EXCHANGE-TRADED FUND IS WELL POSITIONED TO BE A CORE
ELEMENT OF YOUR LONG-TERM INVESTMENT PROGRAM."
LOOK AHEAD
We urge all our investors to look ahead, not only toward their own goals and
futures, but those of future generations as well. We now stand on the threshold
of a new century, anticipating a time of change, discovery, and potential that
may one day make the year 2000 seem as archaic as the year 1900. While we cannot
know all that the future will bring, we do know that a well-diversified,
carefully monitored investment program that combines elements of growth, income,
and capital preservation forms a solid foundation that can help you meet
whatever opportunities and challenges the new century has to offer.
LEAVE YOUR MARK
With the enormous wealth creation of the past decade and the considerable
intergenerational transfer of wealth that is expected to occur over the next 20
years, investors today have a significant opportunity to shape the financial
future for themselves and their families. These opportunities may include
establishing trusts, endowments, or legacies that can directly affect our
families and communities for generations to come. We at Nuveen Investments are
committed to facilitating and raising the level of dialogue between investors
and their financial advisors in ways that help meet goals that extend far beyond
the boundaries of a single life span.
Since 1898, the name Nuveen has been synonymous with quality investments,
careful research and prudent management. Today, more than ever, the investments
and services we offer through financial advisors are designed to be well suited
to those who recognize and embrace the need for building and managing wealth. We
encourage you to speak with your financial advisor about how you can enhance
your investment program in ways that can help you Invest Well, Look Ahead, and
Leave Your Mark.
Sincerely,
/s/Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
August 17, 2000
<PAGE>
Nuveen Florida Exchange-Traded Funds
Portfolio Manager's
COMMENTS
Portfolio manager Tom O'Shaughnessy reviews national and state economic
conditions, their impact on the municipal market and Fund performance, and the
key strategies used to manage the Nuveen Florida Exchange-Traded Funds. Tom, who
has more than 16 years of experience as an investment professional at Nuveen,
has managed NQF and NUF since their inceptions in 1991. He managed NFL from its
inception in 1992 through January 1995, and again since July 1998.
WHAT FACTORS AFFECTED THE ECONOMY OVER THE PAST 12 MONTHS?
First, let's take a look at the national economy to gain some perspective on
what's been happening in Florida. The U.S. economy is now in its tenth year of
uninterrupted expansion, the longest continuous economic expansion in the
nation's history. Over the past 12 months, the rapid pace of this expansion has
been of great concern to the Federal Reserve, which watched carefully for any
signs that the booming economy was about to trigger a resurgence of inflation.
To pre-empt this threat, the Fed last year began a series of short-term interest
rate increases that eventually raised the federal funds rate by 1.75% to 6.50%,
the highest level in almost a decade. Over the past few months, some economic
reports suggested that the Fed's tightening strategy may be having the desired
effect of slowing the economy. Investors hope that this scenario plays out as
described and that the Fed successfully engineers a soft landing for the U.S.
economy.
In line with national trends, Florida's economy remained strong and continued to
benefit from solid growth in tourism and international trade. Major gains in the
nation's equity markets over the past decade have led to substantial increases
in wealth for many members of the state's large retiree population. The state
also has benefited from a continued influx of younger residents. During the past
year, employment growth statewide was average, but future expectations are for
stronger job growth in the business and financial sectors, especially in the
Tampa area. At the same time, Miami continued to attract Latin American
businesses, including the Latin American headquarters of Mercedes Benz. As of
June 2000, the unemployment rate in Florida was 3.8%, down from 3.9% in June
1999 and below the national average of 4.0%. Looking forward, one major economic
concern for the state includes a possible near-term slowdown because of
Florida's heavy reliance on the cyclical tourism industry. The state's generally
healthy fiscal outlook is reflected in the Aa2/AA+/AA credit ratings from
Moody's Investor Service, Standard & Poor's and Fitch IBCA.
HOW HAVE THESE EVENTS IMPACTED THE MUNICIPAL MARKET?
The cumulative effects of the economic events of the past 12 months were
negative for the fixed-income markets, including municipal bonds. Once the Fed
began its series of interest rate hikes, the rise in municipal yields
accelerated. Over the 12 months ended June 2000, long-term municipal yields
nationally rose almost 40 basis points, while 30-year Treasury yields remained
flat. During this period, the U.S Treasury announced that it would buy back up
to $30 billion of U.S. government debt and reduce additional new issuance of
certain maturities. The possibility of decreased supply in this market helped
support the prices of U.S. Treasuries. Municipal bonds, on the other hand, were
unaffected by this repurchase policy and felt the full effects of market forces.
As a result, by the end of June 2000, long-term municipal yields nationally were
over 101% of 30-year Treasury yields, compared with the historical average of
86% for the period 1986-1999.
During the first half of 2000, new municipal issuance nationwide fell 20% from
the level of the first six months of 1999. Florida's issuance for the first half
totaled $5.6 billion, down 16% from the first half of 1999. This decline
continued the trend begun last year, as rising interest rates deterred
municipalities from issuing new bonds or refinancing old debt. Overall, the
decline in supply helped to offset some of the negative
<PAGE>
impact that higher interest rates and equity market activity had on the demand
for municipal bonds and, ultimately, on bond prices. Over the past 12 months,
demand from individual investors improved, providing support for a municipal
market experiencing a decline in demand from institutional investors,
particularly mutual and money market funds.
WERE THE NUVEEN FLORIDA FUNDS' DIVIDENDS AFFECTED BY THIS ENVIRONMENT?
All three Florida Exchange-Traded Funds use leverage as a way to potentially
enhance the dividends paid to common shareholders. The extent of this benefit is
tied to some degree to the short-term rates the Funds pay their
Muni-Preferred(R) shareholders. As short-term rates rise, the income available
for common shareholder dividends decreases. As noted, the Federal Reserve raised
short-term rates significantly over the past year, and these actions had a
corresponding impact on short-term municipal rates. Higher short-term rates,
combined with the eroding effect of a small number of bond calls in NQF and NUF,
led to decreases in the common share dividends of all three Funds over the last
12 months. While we cannot control the direction of interest rates, we will
continue to actively manage the Funds in an effort to mitigate the longer-term
effects of the bond call process.
OVERALL, HOW DID THE FUNDS PERFORM OVER THE PAST YEAR?
For the fiscal year ended June 30, 2000, the Nuveen Florida Exchange-Traded
Funds produced total returns on net asset value (NAV) as shown in the
accompanying table. For comparison purposes, the annual returns for the
appropriate Lehman Brothers Index1 and Lipper Peer Group2 are also presented.
LEHMAN
TOTAL LIPPER
MARKET YIELD TOTAL RETURN ON NAV RETURN1 AVERAGE2
--------------------------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
6/30/00 EQUIVALENT3 6/30/00 6/30/00 6/30/00
--------------------------------------------------------------------------------
NQF 6.29% 9.12% 1.39% 3.25% 0.60%
--------------------------------------------------------------------------------
NUF 6.24% 9.04% 0.87% 3.25% 0.60%
--------------------------------------------------------------------------------
NFL 5.91% 8.57% 1.47% 3.09% 0.60%
--------------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
The relative underperformance of the Funds' total returns on NAV compared with
the Lehman indexes can be attributed largely to their durations.4 Duration is a
measure of a Fund's NAV volatility in reaction to interest rate movements. All
three Funds are leveraged, which, as noted, can enhance the dividends paid to
common shareholders. However, it also has the effect of lengthening a Fund's
duration. In addition, durations are often lengthened as we implement strategies
to maintain or improve call protection within a portfolio.
As of June 30, 2000, the durations of NQF and NUF were 10.79 and 10.13,
respectively, compared with the unleveraged Lehman Brothers Municipal Bond
Index's 7.50. The duration of the insured NFL was 13.91, compared with 8.68 for
the Lehman Insured Municipal Bond Index. We believe the longer durations and
call protection of these Funds should help to strengthen the relative stability
of their common share dividends over the long term and position the Funds to
benefit from any market recovery.
WHAT ABOUT THE FUNDS' SHARE PRICE PERFORMANCE?
Over the past 12 months, the uncertainty of the economic environment, coupled
with investors' focus on equity market performance, tended to dampen interest in
most fixed-income products. This lack of demand put pressure on the prices of
many municipal bond investments, including these Nuveen Funds. As shown in the
charts on the individual Performance Overview pages, the Funds' share prices
declined over the past year. Since the declines in share price were greater than
the declines in the Funds' NAVs, NQF and NUF saw their premiums (share price
above NAV) move to discounts (share price below NAV), while the discount on NFL
widened over the past 12 months. With the market prices of these Funds lower
than the actual value of the bonds in their portfolios, shareholders may want to
consider taking advantage of this opportunity to add to their holdings of NQF,
NUF, and NFL.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN FLORIDA EXCHANGE-TRADED FUNDS
DURING THE FISCAL YEAR ENDED JUNE 30, 2000?
The past 12 months represented a challenging period for all fixed-income
investments. In addition, the tight supply of new issuance in the Florida
municipal market
1 The performance of NQF and NUF is compared with that of the national Lehman
Brothers Municipal Bond Index, an unleveraged index comprising a broad range
of investment-grade municipal bonds. NFL's performance is compared with that
of the national Lehman Brothers Insured Municipal Bond Index, an unleveraged
index covering a broad range of insured municipal bonds. Results for both
Lehman indexes do not reflect any expenses.
2 The Funds' total returns are compared with the average annualized return of
the 13 funds in the Lipper Florida Municipal Debt Funds category. Fund and
Lipper returns assume reinvestment of dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's market
yield on the indicated date and a federal income tax rate of 31%.
4 Fund duration, also known as leverage-adjusted duration, takes into account
the leveraging process for the Fund and therefore is generally longer than the
duration of the actual portfolio of individual bonds that make up the Fund.
Unless otherwise noted, references to duration in this commentary are intended
to indicate Fund duration.
<PAGE>
over the past six months kept trading to a minimum. However, we did take
advantage of several selected opportunities to strengthen the Funds' long-term
dividend-paying capabilities, extend call protection, and enhance tax efficiency
by offsetting some capital gains with capital losses.
Primarily we focused on selling bonds in demand by individual investors at
attractive prices, including pre- refunded bonds and bonds with short call
dates, in order to reinvest in more research-intensive issues with higher
coupons and/or better call protection. We found some of these bonds in the
healthcare sector, which has been under considerable pressure from consolidation
and financial constraints. In our opinion, these conditions created several
opportunities, especially in NQF, to purchase healthcare bonds that carried very
attractive prices relative to our estimation of their underlying value. This is
an area where we rely on Nuveen Research for expert assessments, both on an
industry and individual issuer level.
Multifamily housing is another area where our research expertise and network of
contacts with bankers and developers in the Florida market helped us find the
types of bonds that can add value. Many federally sponsored housing programs are
currently undergoing changes, and we believe this is creating opportunities that
the market has not yet recognized. Over the past year, Florida also saw an
increase in the issuance of airport-related bonds due to growing demand
generated by the state's tourism and international trade industries, which has
led to plans for a number of major airport renovations, primarily in Miami,
Tampa, and Jacksonville. This provided several opportunities to add to NUF's and
NFL's transportation allocation.
As of June 30, 2000, NQF and NUF offered excellent credit quality, with 93% and
83% of their assets, respectively, invested in bonds rated AAA/U.S. guaranteed
and AA. NQF also had a 5% allocation to BBB/non-rated bonds, while NUF carried a
6% allocation to this credit sector. Over the past year, lower quality bonds
generally provided higher yields, especially as credit spreads widened in recent
months. As an insured fund, NFL is 100% invested in insured and/or U.S.
guaranteed bonds, which means that credit quality is not an issue.
WHAT IS YOUR OUTLOOK FOR THE NUVEEN FLORIDA FUNDS?
In terms of bond calls, NFL currently offers excellent levels of call
protection, with only one scheduled call through the end of 2001. NQF and NUF
are fairly well protected for the remainder of 2000, with only 7% and 3% of
their portfolios subject to calls over the next six months. However, these two
Funds, which reach their 10-year anniversaries in 2001, will soon begin to see
the increased potential for calls. In 2001, approximately 31% of NQF's portfolio
and 16% of NUF could be called. We plan to manage through this period using
strategies such as selling bonds with short calls, evaluating each sale on a
case-by-case basis in light of market conditions at the time. We will also
continue to closely monitor the market for opportunities to add bonds that
extend call protection.
Going forward, we plan to focus on the same strategies that we have emphasized
over the past year, including strengthening dividend-payment capabilities. The
portfolio turnover in NQF and NUF due to bond calls should provide us with
several opportunities to enhance the structure of these Funds. In keeping with
the changes in Florida's intangibles tax law, the Nuveen Florida Exchange-Traded
Funds can now invest up to 10% of Fund assets in non-Florida exempt paper. We
believe this could potentially benefit the Funds' income streams by allowing us
to take advantage of opportunities to purchase higher-yielding out-of-state or
national paper.
Overall, we expect the market to continue to work its way through a period of
uncertainty that may last beyond the fall elections. Opportunities often arise
in these types of markets, and we are ready to take advantage of developing
situations. We believe the Nuveen Florida Exchange-Traded Funds continue to be
well positioned to provide attractive income and a measure of portfolio
diversification that can be a valuable benefit to investors now and in the years
ahead.
<PAGE>
NQF
Nuveen Florida Investment Quality Municipal Fund
Performance
OVERVIEW As of June 30, 2000
Portfolio Statistics
==================================================
Inception Date 2/91
--------------------------------------------------
Share Price $14 1/8
--------------------------------------------------
Net Asset Value $14.24
--------------------------------------------------
Market Yield 6.29%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.12%
--------------------------------------------------
Fund Net Assets ($000) $365,290
--------------------------------------------------
Average Effective Maturity (Years) 18.50
--------------------------------------------------
Leverage-Adjusted Duration 10.79
--------------------------------------------------
ANNUALIZED TOTAL RETURN
==================================================
ON SHARE PRICE ON NAV
==================================================
1-Year -5.54% 1.39%
--------------------------------------------------
5-Year 4.56% 4.97%
--------------------------------------------------
Since Inception 5.67% 6.80%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
==================================================
U.S. Guaranteed 26%
--------------------------------------------------
Healthcare 16%
--------------------------------------------------
Housing/Single Family 13%
--------------------------------------------------
Transportation 12%
--------------------------------------------------
Tax Obligation/Limited 10%
--------------------------------------------------
Bar Chart:
1999-2000 Monthly Tax-Free Dividends Per Share2
Jul 0.079
Aug 0.079
Sep 0.079
Oct 0.079
Nov 0.079
Dec 0.079
Jan 0.079
Feb 0.079
Mar 0.077
Apr 0.077
May 0.077
Jun 0.074
Line Chart:
Share Price Performance
7/2/99 15.88
16.06
16
16.19
16.19
16
15.63
15.19
15
15.25
15.25
15.19
15.25
15.25
14.94
14.56
14.5
14.81
14.31
14.06
14
13.5
13.44
13.69
13.13
13.19
13.25
13.25
13.5
14.13
14.19
14.19
14.06
13.81
13.19
13.13
13.19
13.38
13.56
13.38
13.44
13.38
13.19
13.31
13
13.13
13.63
14.06
13.75
13.88
6/30/00 14.13
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
31%.
2 The Fund also paid shareholders a capital gains distribution in December 1999
of $0.0279 per share.
<PAGE>
NUF
Nuveen Florida Quality Income Municipal Fund
Performance
OVERVIEW As of June 30, 2000
PORTFOLIO STATISTICS
==================================================
Inception Date 10/91
--------------------------------------------------
Share Price $14 1/8
--------------------------------------------------
Net Asset Value $14.57
--------------------------------------------------
Market Yield 6.24%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.04%
--------------------------------------------------
Fund Net Assets ($000) $323,212
--------------------------------------------------
Average Effective Maturity (Years) 18.51
--------------------------------------------------
Leverage-Adjusted Duration 10.13
--------------------------------------------------
ANNUALIZED TOTAL RETURN
==================================================
ON SHARE PRICE ON NAV
==================================================
1-Year -4.28% 0.87%
--------------------------------------------------
5-Year 5.21% 5.06%
--------------------------------------------------
Since Inception 5.45% 6.58%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
==================================================
U.S. Guaranteed 24%
--------------------------------------------------
Transportation 22%
--------------------------------------------------
Utilities 11%
--------------------------------------------------
Tax Obligation/General 9%
--------------------------------------------------
Housing/Single Family 9%
--------------------------------------------------
Bar Chart:
1999-2000 Monthly Tax-Free Dividends Per Share3
Jul 0.076
Aug 0.076
Sep 0.076
Oct 0.076
Nov 0.076
Dec 0.076
Jan 0.076
Feb 0.076
Mar 0.076
Apr 0.076
May 0.076
Jun 0.0735
Line Chart:
Share Price Performance
7/2/99 15.81
16.06
16.13
16.13
16.06
15.75
14.75
14.44
14.81
14.75
14.69
14.69
14.81
14.56
14.5
14.38
14.25
14.19
13.81
13.63
13.56
13.25
13
13.38
12.94
13.19
13.06
12.88
13.25
13.63
13.5
13.5
13.5
13.31
13.31
12.88
12.94
13.25
13.31
13.19
13.25
13.44
13.13
12.81
12.94
13.13
13.5
13.63
13.88
14
6/30/00 14.13
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
31%.
<PAGE>
NFL
Nuveen Insured Florida Premium Income Municipal Fund
Performance
OVERVIEW As of June 30, 2000
PORTFOLIO STATISTICS
==================================================
Inception Date 12/92
--------------------------------------------------
Share Price $13
--------------------------------------------------
Net Asset Value $14.25
--------------------------------------------------
Market Yield 5.91%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.57%
--------------------------------------------------
Fund Net Assets ($000) $314,591
--------------------------------------------------
Average Effective Maturity (Years) 19.98
--------------------------------------------------
Leverage-Adjusted Duration 13.91
--------------------------------------------------
ANNUALIZED TOTAL RETURN
==================================================
ON SHARE PRICE ON NAV
==================================================
1-Year -5.17% 1.47%
--------------------------------------------------
5-Year 6.16% 5.96%
--------------------------------------------------
Since Inception 3.73% 5.64%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
==================================================
Tax Obligation/Limited 22%
--------------------------------------------------
Transportation 20%
--------------------------------------------------
U.S.Guaranteed 17%
--------------------------------------------------
Water and Sewer 9%
--------------------------------------------------
Housing/Multifamily 8%
--------------------------------------------------
Bar Chart:
1999-2000 Monthly Tax-Free Dividends Per Share
Jul 0.0665
Aug 0.0665
Sep 0.0665
Oct 0.0665
Nov 0.0665
Dec 0.0665
Jan 0.0665
Feb 0.0665
Mar 0.0665
Apr 0.0665
May 0.0665
Jun 0.064
Line Chart:
Share Price Performance
7/2/99 15
14.94
14.69
14.63
14.69
14.63
13.88
13.94
13.94
13.81
13.56
13.56
13.56
13.56
13.5
13.31
13.06
13.44
13
13
13.06
12.63
12.63
13
12.75
12.94
12.88
12.69
12.69
12.88
12.88
12.94
12.69
12.69
12.5
12.56
12.31
12.38
12.56
12.25
12.44
12.63
12.5
11.94
12.31
12.38
12.69
12.56
12.63
12.88
13
6/30/00 15
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
31%.
<PAGE>
Report of
INDEPENDENT AUDITORS
THE BOARDS OF TRUSTEES AND SHAREHOLDERS
NUVEEN FLORIDA INVESTMENT QUALITY MUNICIPAL FUND
NUVEEN FLORIDA QUALITY INCOME MUNICIPAL FUND
NUVEEN INSURED FLORIDA PREMIUM INCOME MUNICIPAL FUND
We have audited the accompanying statements of net assets, including the
portfolios of investments, of Nuveen Florida Investment Quality Municipal Fund,
Nuveen Florida Quality Income Municipal Fund and Nuveen Insured Florida Premium
Income Municipal Fund as of June 30, 2000, and the related statements of
operations, changes in net assets and the financial highlights for the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of investments
owned as of June 30, 2000, by correspondence with the custodian and brokers. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Nuveen
Florida Investment Quality Municipal Fund, Nuveen Florida Quality Income
Municipal Fund and Nuveen Insured Florida Premium Income Municipal Fund as of
June 30, 2000, the results of their operations, changes in their net assets and
financial highlights for the periods indicated therein in conformity with
accounting principles generally accepted in the United States.
/s/ Ernst & Young LLP
Chicago, Illinois
August 18, 2000
<PAGE>
Nuveen Florida Investment Quality Municipal Fund (NQF)
Portfolio of
INVESTMENTS June 30, 2000
<TABLE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HEALTHCARE - 16.0%
$ 1,500 The Cape Canaveral Hospital District, Revenue Refunding Certificates, 1/08 at 101 BBB $ 1,143,120
Series 1998, 5.250%, 1/01/28
7,500 Escambia County, Florida, Health Facilities Authority, Revenue Bonds, 7/05 at 101 Aaa 7,565,625
Series 2000 (Florida Health Care Facility Loan Program - Voluntary
Hospitals of America Program Administrator), 5.950%, 7/01/20 (WI)
20,000 Escambia County, Florida, Health Facilities Authority, Revenue Bonds 11/09 at 101 AA 20,176,600
(Ascension Health Credit Group), Series 1999A-1, 6.000%, 11/15/31
11,000 Jacksonville Health Facilities Authority, Florida, Hospital Facilities 11/01 at 102 AA+ 11,515,350
Refunding Revenue Bonds, Series 1991 (St. Luke's Hospital Association
Project), 7.125%, 11/15/20
7,500 City of Miami Beach, Health Facilities Authority, Hospital Revenue Bonds, 11/08 at 101 BBB 5,772,900
Series 1998 (Mount Sinai Medical Center of Florida Project),
5.375%, 11/15/28
7,925 Adventist Health System/Sunbelt, Inc., Orange County, Florida Health 11/01 at 102 AAA 8,279,565
Facilities Authority, Hospital Revenue Bonds, Series 1991-B,
6.750%, 11/15/21
4,250 St. John's County Industrial Development Authority, Hospital Revenue 8/02 at 102 A 24,023,773
Bonds (Flagler Hospital Project), Series 1992, 6.000%, 8/01/22
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.1%
11,270 Housing Finance Authority of Broward County, Florida, Multifamily Housing 7/09 at 102 N/R 10,527,983
Revenue Bonds (The Pier Club Apartments Project), Series 1999,
7.000%, 7/01/34
1,890 Florida Housing Finance Agency, General Mortgage Revenue Refunding Bonds, 6/02 at 103 AAA 1,929,728
1992 Series A, 6.400%, 6/01/24
2,500 Florida Housing Finance Agency, Housing Revenue Bonds, 1996 Series K-1 9/06 at 102 AAA 2,541,850
(Mariner Club Apartments Project), 6.375%, 9/01/36
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 13.2%
6,845 Brevard County Housing Finance Authority, Single Family Mortgage Revenue 9/01 at 102 Aaa 7,047,064
Refunding Bonds, Series 1991C, 7.000%, 9/01/23
3,570 Housing Finance Authority of Broward County, Florida, GNMA and FNMA 3/01 at 102 AAA 3,667,925
Collateralized Home MortgagE Revenue Bonds, 1991 Series A, 7.350%,
3/01/23 (Alternative Minimum Tax)
1,080 Housing Finance Authority of Clay County, Florida, Single Family Mortgage 4/07 at 102 Aaa 1,080,907
Revenue Bonds, Series 1997 (Multi-County Program), 5.950%, 10/01/19
(Alternative Minimum Tax)
1,010 Housing Finance Authority of Dade County (Florida), Single Family 9/00 at 102 Aaa 1,030,937
Mortgage Revenue Bonds, 1990 Series C, 7.750%, 9/01/22
(Alternative Minimum Tax)
600 Housing Finance Authority of Dade County (Florida), Single Family 3/01 at 102 Aaa 612,552
Mortgage Revenue Bonds, Series B, 7.250%, 9/01/23
(Alternative Minimum Tax)
335 Housing Finance Authority of Dade County (Florida), Single Family 4/05 at 102 AAA 346,135
Mortgage Revenue Bonds, Series1995, 6.550%, 10/01/27
(Alternative Minimum Tax)
2,405 Escambia County Housing Finance Authority (Florida), Single Family 4/07 at 102 Aaa 2,251,585
Mortgage Revenue Bonds, Series1998A (Multi-County Program), 5.300%,
10/01/19 (Alternative Minimum Tax)
9,320 Florida Housing Finance Agency, Homeowner Mortgage Revenue Bonds, 1/06 at 102 AA 9,408,913
1995 Series 2 (New Money and Refunding Issue), 6.200%, 7/01/27
(Alternative Minimum Tax)
1,900 Florida Housing Finance Agency, Homeowner Mortgage Revenue Bonds, 1/07 at 102 AA 1,942,522
Series 2 (New Money and Refunding Issue), 6.350%, 7/01/28
(Alternative Minimum Tax)
3,045 Florida Housing Finance Agency, Homeowner Mortgage Revenue Bonds, 7/07 at 102 AAA 3,004,197
1997 Series 2, 5.900%, 7/01/29 (Alternative Minimum Tax)
2,290 Housing Finance Authority of Leon County (Florida), Single Family 4/01 at 102 Aaa 2,334,014
Mortgage Revenue Bonds, 1991 Series A (Multi-County Program),
7.300%, 4/01/21 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING/SINGLE FAMILY (continued)
$ 1,950 Housing Finance Authority of Manatee County, Florida, Single Family 11/05 at 102 Aaa $ 2,098,493
Mortgage Revenue Bonds, Series 1994 Subseries 3, 7.600%, 11/01/26
(Alternative Minimum Tax)
1,800 Housing Finance Authority of Manatee County, Florida, Single Family 5/06 at 105 Aaa 1,945,566
Mortgage Revenue Bonds, Series 1996 Subseries 1, 7.450%, 5/01/27
(Alternative Minimum Tax)
Orange County Housing Finance Authority, GNMA Collateralized
Mortgage Revenue Bonds, 1991 Series A:
2,285 7.250%, 9/01/11 (Alternative Minimum Tax) 3/01 at 103 AAA 2,344,341
8,810 7.375%, 9/01/24 (Alternative Minimum Tax) 3/01 at 103 AAA 9,077,207
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 4.2%
2,810 Broward County, Florida, Public Improvement Refunding Bonds, Series 1986 No Opt. Call AA 3,496,427
(General Obligation Bonds), 12.500%, 1/01/04
2,400 State of Florida, Full Faith and Credit, Department of Transportation, 7/09 at 101 AA+ 2,141,808
Right-of-Way Acquisition and Bridge Construction Bonds,
Series 1999A, 5.000%, 7/01/28
12,000 State of Florida, Full Faith and Credit, State Board of Education, 6/07 at 101 AA+ 9,693,480
Public Education Capital Outlay Bonds, 1996 Series B, 4.500%, 6/01/27
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 9.5%
18,315 Dade County, Florida, Special Obligation and Refunding Bonds, 10/06 at 102 AAA 16,180,936
Series 1996B, 5.000%, 10/01/35
6,000 Florida Ports Financing Commission, Revenue Bonds (State Transportation 6/07 at 101 AAA 5,624,160
Trust Fund), Series 1996, 5.375%, 6/01/27 (Alternative Minimum Tax)
5,000 The County of Hernando, Florida (Criminal Justice Complex Financing No Opt. Call AAA 6,196,500
Program), 1986 Series, 7.650%, 7/01/16
Manchester Housing and Redevelopment Authority, New Hampshire,
Revenue Bonds, 2000 Series B:
5,140 0.000%, 1/01/21 1/10 at 46 25/32 A 1,279,192
4,640 0.000%, 1/01/25 1/10 at 35 3/32 A 872,042
5,140 0.000%, 1/01/28 1/10 at 28 9/32 A 783,028
Tampa Sports Authority, 1995 Special Purpose Bonds, State of
Florida Sales Tax Payment Series (Tampa Bay Arena Project):
1,250 5.750%, 10/01/20 No Opt. Call AAA 1,282,363
2,585 5.750%, 10/01/25 No Opt. Call AAA 2,624,525
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.0%
3,500 Dade County, Florida, Aviation Bonds, Series 1996A, 5.750%, 10/06 at 102 AAA 3,450,650
10/01/26 (Alternative Minimum Tax)
13,500 Greater Orlando Aviation Authority (Florida), Airport Facilities 10/09 at 101 AAA 12,082,095
Revenue Bonds, Series 1999A, 5.125%, 10/01/28 (Alternative Minimum Tax)
2,590 Hillsborough County Aviation Authority, Florida, Tampa International 10/06 at 102 AAA 2,637,760
Airport Revenue Bonds, 1996 Series A, 6.000%, 10/01/23
(Alternative Minimum Tax)
3,500 Hillsborough County Aviation Authority, Florida, Tampa International 10/06 at 102 AAA 3,549,875
Airport Revenue Bonds, Series 1996B, 5.875%, 10/01/23
1,750 Miami-Dade County Industrial Development Authority, Industrial 10/09 at 101 AAA 1,780,048
Development Revenue Bonds, Florida (Airis Miami II LLC Project at the
Miami International Airport), Series 1999, 6.000%, 10/15/25
(Alternative Minimum Tax)
15,450 Miami-Dade County, Florida, Aviation Revenue Bonds, Series 1998C, 10/08 at 101 AAA 13,467,611
Miami International Airport (Hub of the Americas), 5.000%,
10/01/28 (Alternative Minimum Tax)
5,500 New Jersey Turnpike Authority, Turnpike Revenue Bonds, 1/10 at 100 AAA 5,339,950
Series 2000A, 5.500%, 1/01/30
1,425 County of Volusia, Florida, Airport System Revenue Bonds, 10/00 at 102 AAA 1,460,597
Series 1991 (Daytona Beach Regional Airport), 7.000%, 10/01/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 26.1%
7,475 Certificates of Participation, Series 1991A, The School Board of 7/01 at 102 AAA 7,776,093
Broward County, Florida, 6.500%, 7/01/11 (Pre-refunded to 7/01/01)
3,000 The Cape Canaveral Hospital District, Improvement Revenue Certificates, 1/01 at 102 AAA 3,096,810
Series 1991, 6.875%, 1/01/21 (Pre-refunded to 1/01/01)
<PAGE>
Nuveen Florida Investment Quality Municipal Fund (NQF) (continued)
Portfolio of INVESTMENTS June 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GUARANTEED (continued)
$ 10,000 Charlotte County, Florida, Utility System Revenue Bonds, 10/01 at 102 AAA $ 10,506,400
Series 1991, 7.000%, 10/01/14 (Pre-refunded to 10/01/01)
2,395 Dade County, Florida, Special Obligation Bonds (Courthouse Center 4/04 at 102 A3*** 2,555,633
Project), Series 1994, 6.300%, 4/01/14 (Pre-refunded to 4/01/04)
7,225 Dade County, Florida, Special Obligation and Refunding Bonds, 10/08 at 48 5/6 AAA 2,312,578
Series 1996B, 0.000%, 10/01/20 (Pre-refunded to 10/01/08)
10,165 Florida Keys Aqueduct Authority, Water Revenue Refunding Bonds, 9/01 at 101 AAA 10,536,632
Series 1991, 6.750%, 9/01/21 (Pre-refunded to 9/01/01)
6,955 State of Florida, Full Faith and Credit, State Board of Education, 6/05 at 101 AAA 7,379,464
Public Education Capital Outlay Bonds, 1993 Series F, 6.000%,
6/01/20 (Pre-refunded to 6/01/05)
950 City of Fort Myers, Florida, Improvement Revenue Bonds (Special 7/03 at 100 BBB-*** 1,010,838
Assessment Geographical Area No. 24 Improvements), Series 1991A,
7.100%, 7/01/06 (Pre-refunded to 7/01/03)
1,565 City of Green Cove Springs, Florida, Utilities Refunding Revenue 10/01 at 102 AAA 1,639,729
Bonds, Series 1991, 6.750%, 10/01/10 (Pre-refunded to 10/01/01)
3,530 Halifax Hospital Medical Center (Daytona Beach, Florida), Hospital 10/01 at 102 AAA 3,697,251
Revenue Refunding Bonds, 1991 Series A, 6.750%, 10/01/06
(Pre-refunded to 10/01/01)
11,000 Jacksonville Health Facilities Authority, Health Facilities Revenue 11/00 at 102 Aaa 11,330,660
Refunding Bonds, Daughters of Charity National Health System Inc.,
St. Vincent's Medical Center Issue, Series 1990, 7.500%,
11/01/15 (Pre-refunded to 11/01/00)
4,500 Orange County, Tourist Development Tax Revenue Bonds, Series 1992B 10/02 at 100 AAA 4,634,460
(Florida), 6.000%, 10/01/21 (Pre-refunded to 10/01/02)
1,400 City of Pembroke Pines, Florida, Capital Improvement Revenue Bonds, 10/04 at 102 AAA 1,490,328
Series 1995, 6.000%, 10/01/25 (Pre-refunded to 10/01/04)
5,000 St. Lucie County, Florida, Utility System Revenue Bonds, 10/00 at 102 AAA 5,133,750
Series 1990, 7.125%, 10/01/17 (Pre-refunded to 10/01/00)
4,000 City of St. Petersburg Health Facilities Authority (Florida), 12/01 at 102 AAA 4,197,800
Revenue Bonds, Series 1985A (Allegany Health System Loan Program),
7.000%, 12/01/15 (Pre-refunded to 12/01/01)
3,570 Seminole County, Florida, Water and Sewer Revenue Refunding and 10/19 at 100 AAA 3,747,358
Improvement Bonds, Series 1992, 6.000%, 10/01/19
(Pre-refunded to 10/01/19)
4,500 City of Tampa, Florida, Revenue Bonds (The Florida Aquarium Project), 5/02 at 102 N/R*** 4,810,635
Series 1992, 7.750%, 5/01/27 (Pre-refunded to 5/01/02)
2,900 City of Tampa, Florida, Water and Sewer Systems Revenue Bonds, 10/02 at 101 AAA 3,012,839
Series 1992, 6.000%, 10/01/17 (Pre-refunded to 10/01/02)
475 County of Volusia, Florida, Airport System Revenue Bonds, 10/00 at 102 AAA 487,488
Series 1991 (Daytona Beach Regional Airport), 7.000%, 10/01/21
(Alternative Minimum Tax) (Pre-refunded to 10/01/00)
5,650 Certificates of Participation (School Board of Volusia County, 8/01 at 102 AAA 5,900,803
Florida Master Lease Program), Series 1991, 6.750%, 8/01/11
(Pre-refunded to 8/01/01)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.9%
435 City of Green Cove Springs, Florida, Utilities Refunding Revenue 10/01 at 102 AAA 453,105
Bonds, Series 1991, 6.750%, 10/01/10
4,250 City of Lakeland, Florida, Energy System Refunding Revenue Bonds, No Opt. Call AAA 4,593,953
Series 1999C, 6.050%, 10/01/11
Lee County, Florida, Solid Waste System Revenue Bonds, Series 1991A:
6,500 7.000%, 10/01/05 (Alternative Minimum Tax) 10/01 at 102 AAA 6,790,030
4,750 7.000%, 10/01/06 (Alternative Minimum Tax) 10/01 at 102 AAA 4,961,945
7,460 Orlando, Florida, Utilities Commission Water and Electric 10/00 at 100 Aa2 6,672,075
Subordinated Revenue Bonds, Series 1989D, 5.000%, 10/01/23
5,000 Orlando Utilities Commission, Water and Electric Revenue No Opt. Call Aa1 5,386,450
Refunding Bonds, Series 1992, 6.000%,10/01/10
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WATER AND SEWER - 5.6%
$ 835 Florida Keys Aqueduct Authority, Water Revenue Bonds, 9/01 at 101 AAA $ 861,495
Series 1991, 6.750%, 9/01/21
2,560 Florida Governmental Utility Authority, Utility Revenue Bonds 10/09 at 101 Aaa 2,277,888
(Golden Gate Utility System), Series 1999, 5.000%, 10/01/29
1,000 City of Jacksonville, Florida, Water and Sewer Revenue Bonds, 8/05 at 102 AAA 1,042,070
Series 1995 (United Water Florida Project), 6.350%, 8/01/25
(Alternative Minimum Tax)
7,600 Miami-Dade County, Florida, Water and Sewer System Revenue Bonds, 10/09 at 101 AAA 6,762,480
Series 1999A, 5.000%, 10/01/29
6,000 Village of Royal Palm Beach, Florida, Utility System Revenue 10/01 at 102 AAA 6,276,060
Refunding Bonds, Series 1991, 6.875%,10/15/15
1,680 Seminole County, Florida, Water and Sewer Revenue Refunding and No Opt. Call AAA 1,784,597
Improvement Bonds, Series 1992, 6.000%, 10/01/19
1,450 City of Tampa, Florida, Water and Sewer Systems Revenue Bonds, 10/02 at 101 AAA 1,480,474
Series 1992, 6.000%, 10/01/17
------------------------------------------------------------------------------------------------------------------------------------
$ 380,850 Total Investments (cost $354,936,340) - 98.6% 360,212,070
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 5,078,381
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 365,290,451
====================================================================================================================
</TABLE>
* Optional Call Provisions (not covered by the report
of independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying
prices at later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust
containing sufficient U.S. Government or U.S.
Government agency securities which ensures the
timely payment of principal and interest. Securities
are normally considered to be equivalent to AAA
rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
<PAGE>
Nuveen Florida Quality Income Municipal Fund (NUF)
Portfolio of
INVESTMENTS June 30, 2000
<TABLE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION AND CIVIC ORGANIZATIONS - 2.3%
Brevard County Educational Facilities Authority (Florida),
Educational Facilities Refunding and Improvement Revenue Bonds,
Series 1992:
$ 2,565 6.750%, 11/01/07 11/02 at 102 BBB- $ 2,673,012
4,790 6.875%, 11/01/22 11/02 at 102 BBB- 4,918,037
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 7.0%
1,000 Alachua County Health Facilities Authority (Florida), Health 12/02 at 100 AAA 1,005,430
Facilities Revenue Bonds, Series 1992R (Shands Hospital at the
University of Florida Project), 5.750%, 12/01/15
7,500 Escambia County, Florida, Health Facilities Authority, Revenue 7/05 at 101 Aaa 7,565,625
Bonds, Series 2000 (Florida Health Care Facility Loan Program -
Voluntary Hospitals of America Program Administrator), 5.950%,
7/01/20 (WI)
10,395 City of Jacksonville, Florida, Hospital Revenue Bonds, 2/02 at 102 AAA 10,844,584
Series 1992 (University Medical Center, Inc. Project),
6.600%, 2/01/21
1,500 City of Leesburg, Florida, Hospital Revenue Refunding Bonds 7/03 at 102 A 1,543,680
(Leesburg Regional Medical Center Project), Series 1993A,
6.250%, 7/01/09
1,675 Orange County Health Facilities Authority, Florida, Hospital 11/01 at 102 AAA 1,754,847
Revenue Bonds, Series 1991-A (Adventist Health System/Sunbelt,
Inc.), 6.875%, 11/15/15
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.5%
Housing Finance Authority of Broward County, Florida,
Multifamily Housing Revenue Refunding Bonds, Series 1996
(Tamarac Pointe Apartments Project, GNMA Collateralized):
1,500 6.250%, 7/01/26 7/06 at 102 AAA 1,517,865
1,000 6.300%, 1/01/32 7/06 at 102 AAA 1,015,040
9,600 Housing Finance Authority of Broward County, Florida, Multifamily 6/09 at 102 N/R 8,691,552
Housing Revenue Bonds (Pembroke Gardens Project), Series 1999,
6.150%, 6/01/39 (Alternative Minimum Tax)
1,655 Florida Housing Finance Agency, General Mortgage Revenue Refunding 6/02 at 103 AAA 1,689,788
Bonds, 1992 Series A, 6.400%, 6/01/24
1,000 Florida Housing Finance Agency, Housing Revenue Bonds, 10/05 at 102 AAA 993,540
1995 Series F (Holly Cove Apartment Project), 6.150%, 10/01/25
(Alternative Minimum Tax)
3,670 Florida Housing Finance Corporation, Housing Revenue Refunding Bonds, 12/08 at 102 A+ 3,174,220
1998 Series O (Hunters Ridge at Deerwood Apartments), 5.300%, 12/01/28
1,000 Hialeah Housing Authority (Florida), Housing Revenue Refunding 6/08 at 105 AAA 935,160
Bonds, Series 1998 (GNMA Collateralized), Affordable Housing Program,
5.300%, 12/20/18
3,240 Housing Finance Authority of Pinellas County, Florida. Multifamily 1/08 at 100 AAA 3,136,612
Housing Revenue Bonds (Emerald Bay Apartments Projects), Series 1998A,
5.000%, 4/01/28 (Alternative Minimum Tax) (Mandatory put 4/01/08)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.5%
8,525 Housing Finance Authority of Broward County, Florida, Single 4/09 at 25 1/2 Aaa 1,192,477
Family Mortgage Revenue Refunding Bonds, Series 2000B, 0.000%,
4/01/29 (Alternative Minimum Tax)
1,009 Housing Finance Authority of Dade County (Florida), Single Family 12/01 at 102 AAA 1,032,822
Mortgage Revenue Refunding Bonds, 1991 Series D, 6.950%, 12/15/12
340 Housing Finance Authority of Dade County (Florida), Single Family 3/01 at 102 Aaa 348,568
Mortgage Revenue Bonds, 1991 Series E, 7.000%, 3/01/24
1,665 Housing Finance Authority of Dade County (Florida), Single Family 4/05 at 102 AAA 1,720,345
Mortgage Revenue Bonds, Series 1995, 6.550%, 10/01/27
(Alternative Minimum Tax)
4,770 Florida Housing Finance Agency, Homeowner Mortgage Revenue Bonds, 1/06 at 102 AA 4,815,506
1995 Series 2 (Refunding/New Money Issue), 6.200%, 7/01/27
(Alternative Minimum Tax)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING/SINGLE FAMILY (continued)
$ 2,190 Florida Housing Finance Agency, Home Ownership Revenue Refunding Bonds, No Opt. Call AAA $ 2,447,763
1987 Series G1, 8.595%, 11/01/17
3,120 Housing Finance Authority of Hillsborough County (Florida), Single 10/07 at 102 Aaa 2,774,210
Family Mortgage Revenue Bonds, Series 1998A, 5.300%, 4/01/31
(Alternative Minimum Tax)
2,675 Housing Finance Authority of Lee County, Florida, 3/07 at 105 Aaa 2,841,037
Single Family Mortgage Revenue Bonds (Multi-County Program),
Series 1997A, Subseries 1, 7.200%, 3/01/27 (Alternative Minimum Tax)
Housing Authority of Miami-Dade County (Florida), Home-Ownership
Mortgage Revenue Bonds, Series 1999A-1:
750 5.550%, 10/01/19 (Alternative Minimum Tax) 4/08 at 101 1/2 Aaa 716,970
2,400 5.625%, 4/01/32 (Alternative Minimum Tax) 4/08 at 101 1/2 Aaa 2,246,952
2,960 Orange County Housing Finance Authority (Orange County, Florida), 4/06 at 102 AAA 3,006,738
Single Family Mortgage Revenue Bonds (GNMA and Fannie Mae
Mortgage-Backed Securities Program), Series 1996A, 6.300%, 4/01/28
(Alternative Minimum Tax)
4,285 Orange County Housing Finance Authority, Single Family Mortgage 9/07 at 102 AAA 4,222,096
Revenue Bonds (GNMA and Fannie Mae Mortgage-Backed Securities Program),
Series 1997B, 5.100%, 9/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.7%
7,285 City of Atlantic Beach, Florida, Health Care Facilities Revenue 10/09 at 101 A 6,909,895
Refunding Bonds (Fleet Landing Project), Series 1999, 5.750%, 10/01/18
Jacksonville Health Facilities Authority (Florida), Industrial
Development Revenue Bonds (National Benevolent Association -
Cypress Village Florida Project), Series 2000A:
500 7.050%, 3/01/24 3/10 at 101 Baa2 494,265
1,250 7.100%, 3/01/30 3/10 at 101 Baa2 1,234,588
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 8.6%
2,150 Alachua County Library District, Florida, General Obligation Refunding 8/01 at 102 AAA 2,234,818
Bonds, Series 1991, 6.600%, 8/01/10
4,450 Board of Education of the City of Chicago, Illinois, Unlimited Tax 12/10 at 100 AAA 4,196,617
General Obligation Bonds (Dedicated Revenues), Series 2000A,
5.500%, 12/01/31 (WI)
5,000 State of Florida, Full Faith and Credit, State Board of Education, 12/00 at 100 AA+ 5,000,750
Public Education Capital Outlay Bonds, Series 1989-A (Refunding Bonds),
6.000%, 6/01/25
10,000 State of Florida, Full Faith and Credit, State Board of Education, 6/08 at 101 AA+ 8,178,600
Public Education Capital Outlay Refunding Bonds, 1998 Series D,
4.500%, 6/01/24
10,000 State of Florida, Full Faith and Credit, State Board of Education, 6/09 at 101 AAA 8,279,900
Public Education Capital Outlay Refunding Bonds, 1999 Series A,
4.500%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 4.2%
2,000 Certificates of Participation, Series 1994, The Department of 3/04 at 102 A+ 2,052,360
Corrections (State of Florida), 6.000%, 3/01/14
3,170 City of Jacksonville, Florida, Excise Tax Revenue Bonds, No Opt. Call AAA 1,318,466
Series 1993, 0.000%, 10/01/15 (Alternative Minimum Tax)
2,475 Northern Palm Beach County (Florida), Improvement District, 8/10 at 102 AA 2,535,464
Water Control and Improvement Bonds, Unit of Development No. 19,
Series 2000, 6.100%, 8/01/21
2,000 City of Opa-Locka, Florida, Capital Improvement Revenue Bonds, 1/04 at 102 AAA 2,048,660
Series 1994, 6.125%, 1/01/24
5,500 City of St. Petersburg, Florida, Public Improvement Refunding 2/02 at 102 AAA 5,728,305
Revenue Bonds, Series 1992, 6.375%, 2/01/12
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 21.6%
12,000 Dade County, Florida, Aviation Bonds, Series 1996A, 5.750%, 10/01/26 10/06 at 102 AAA 11,830,800
(Alternative Minimum Tax)
1,500 Dade County, Florida, Aviation Revenue Bonds, Series 1995B, 6.000%, 10/05 at 102 AAA 1,534,755
10/01/24 (Alternative Minimum Tax)
15,000 Cities of Dallas and Fort Worth, Texas, Dallas-Fort Worth International 11/09 at 100 AAA 15,147,000
Airport, Joint Revenue Bonds, Series 2000A, 6.125%, 11/01/35
(Alternative Minimum Tax)
<PAGE>
Nuveen Florida Quality Income Municipal Fund (NUF) (continued)
Portfolio of INVESTMENTS June 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TRANSPORTATION (continued)
$ 8,540 Greater Orlando Aviation Authority (Florida), Airport Facilities, 10/02 at 102 AAA $ 8,951,970
Revenue Bonds, Series 1992A, 6.500%, 10/01/12 (Alternative Minimum Tax)
3,500 Greater Orlando Aviation Authority (Florida), Airport Facilities 10/07 at 101 AAA 3,257,695
Revenue Bonds, Series 1997, 5.250%, 10/01/23 (Alternative Minimum Tax)
4,000 Greater Orlando Aviation Authority (Florida), Airport Facilities 5.125%, 10/09 at 101 AAA 3,579,880
Revenue Bonds, Series 1999A, 10/01/28 (Alternative Minimum Tax)
7,500 Miami-Dade County, Florida, Aviation Revenue Bonds, Series 1998A, 10/08 at 101 AAA 6,621,300
Miami International Airport (Hub of the Americas), 5.000%, 10/01/24
(Alternative Minimum Tax)
7,065 Miami-Dade County, Florida, Aviation Revenue Bonds, Series 1998C, 10/08 at 101 AAA 6,269,552
Miami International Airport (Hub of the Americas), 5.000%, 10/01/23
(Alternative Minimum Tax)
10,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 2000A, 1/10 at 100 A- 9,721,600
5.500%, 1/01/27
2,500 Palm Beach County, Florida, Airport System Revenue Refunding Bonds, 10/02 at 102 AAA 2,623,325
Series 1992, 6.375%, 10/01/14
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 23.4%
1,500 Bradford County Health Facilities Authority, Health Facilities Revenue No Opt. Call AAA 1,586,685
Refunding Bonds, Series 1993 (Santa Fe HealthCare Facilities Project),
6.050%, 11/15/16
3,490 Charlotte County, Florida, Utility System Revenue Bonds, 10/01 at 102 AAA 3,661,708
Series 1991, 6.875%, 10/01/21 (Pre-refunded to 10/01/01)
7,000 Dade County Health Facilities Authority, Hospital Revenue Refunding 8/02 at 102 AAA 7,390,740
Bonds, Series 1992 (North Shore Medical Center Project), 6.500%,
8/15/15 (Pre-refunded to 8/15/02)
2,205 City of Dunedin (Florida), Hospital Revenue Bonds, Series 1991 11/01 at 102 AAA 2,313,773
(Mease Health Care), 6.750%, 11/15/21 (Pre-refunded to 11/15/01)
1,000 State of Florida, Full Faith and Credit, Pollution Control Bonds, 7/02 at 101 AA+*** 1,045,900
Series Y, Division of Bond Finance of the Department of General Services,
6.600%, 7/01/17 (Pre-refunded to 7/01/02)
4,750 City of Hollywood, Florida, Water and Sewer Revenue Bonds, 10/01 at 102 AAA 4,983,700
Series 1991, 6.875%, 10/01/21 (Pre-refunded to 10/01/01)
4,625 Jacksonville Electric Authority (Florida), Bulk Power Supply System 10/00 at 101 1/2 Aaa 4,721,570
Revenue Bonds (Scherer 4 Project, Issue One, Series 1991A),
6.750%, 10/01/21 (Pre-refunded to 10/01/00)
2,750 Kissimmee Utility Authority (Florida), Electric System Improvement 10/01 at 102 AAA 2,873,035
and Refunding Revenue Bonds, Series 1991, 6.500%, 10/01/17
(Pre-refunded to 10/01/01)
2,500 City of Leesburg, Florida, Capital Improvement Hospital Revenue 7/02 at 102 A*** 2,681,600
Bonds (Leesburg Regional Medical Center Project), Series 1991A, 7.500%,
7/01/21 (Pre-refunded to 7/01/02)
Orange County (Florida), Tourist Development Tax Revenue Bonds, Series 1992B:
3,000 6.500%, 10/01/19 (Pre-refunded to 10/01/02) 10/02 at 102 AAA 3,173,550
7,490 6.000%, 10/01/21 (Pre-refunded to 10/01/02) 10/02 at 100 AAA 7,713,801
7,375 Orlando (Florida), Utilities Commission, Water and Electric 10/01 at 102 Aaa 7,704,958
Subordinated Revenue Bonds, Series 1991A, 6.500%, 10/01/20
(Pre-refunded to 10/01/01)
11,000 Reedy Creek Improvement District (Florida) (Located in Orange 10/01 at 101 AAA 11,387,970
and Osceola Counties), Utilities Revenue Bonds, Series 1991-1,
6.500%, 10/01/16 (Pre-refunded to 10/01/01)
5,000 City of St. Petersburg Health Facilities Authority (Florida), 12/01 at 102 AAA 5,247,250
Revenue Bonds, Series 1985A (Allegany Health System Loan Program),
7.000%, 12/01/15 (Pre-refunded to 12/01/01)
2,300 Sarasota County, Florida, Utility System Revenue Bonds, 10/04 at 102 AAA 2,492,211
Series 1994, 6.500%, 10/01/22 (Pre-refunded to 10/01/04)
2,000 The School Board of Seminole County, Florida, Certificates of 7/04 at 102 AAA 2,133,460
Participation, Series 1994A, 6.125%, 7/01/19 (Pre-refunded to 7/01/04)
1,000 City of Stuart, Florida, Public Utilities, Revenue Improvement 10/03 at 100 AAA 1,062,660
Bonds, Series 1994, 6.800%, 10/01/24 (Pre-refunded to 10/01/03)
3,000 City of Tampa, Florida, Revenue Bonds (The Florida Aquarium Project), 5/02 at 102 N/R*** 3,207,090
Series 1992, 7.750%, 5/01/27 (Pre-refunded to 5/01/02)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
UTILITIES - 11.0%
$ 10,000 Citrus County, Florida, Pollution Control Refunding Revenue Bonds, 1/02 at 102 A+ $ 10,402,600
Series 1992A (Florida Power Corporation, Crystal River Power
Plant Project), 6.625%, 1/01/27
5,830 Hillsborough County Industrial Development Authority (Florida), 8/01 at 103 AA 6,177,818
Pollution Control Revenue Bonds (Tampa Electric Company Project),
Series 1991, 7.875%, 8/01/21
9,800 Hillsborough County Industrial Development Authority, 5/02 at 103 AA 10,605,266
Pollution Control Revenue Refunding Bonds (Tampa Electric
Company Project), Series 1992, 8.000%, 5/01/22
3,000 Jacksonville Electric Authority, Florida, Electric System Revenue Bonds, 10/03 at 100 AA- 3,008,610
Subordinate Lien Series 2000D, 5.375%, 10/01/11 (DD)
3,000 Orlando (Florida), Utilities Commission, Water and Electric Subordinated 10/02 at 100 Aa 22,876,400
Revenue Bonds, Series 1992A, 5.500%, 10/01/27
2,500 St. Lucie County, Florida, Solid Waste Disposal Revenue Bonds 2/01 at 102 AA- 2,579,450
(Florida Power And Light Company Project), Series 1991, 7.150%,
2/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 3.5%
5,000 Town of Davie, Florida, Water and Sewer Improvement and Refunding 10/02 at 102 AAA 5,165,750
Revenue Bonds, Series 1992, 6.250%, 10/01/17
5,300 Miami-Dade County, Florida, Water and Sewer System Revenue Bonds, 10/09 at 101 AAA 4,715,940
Series 1999A, 5.000%, 10/01/29
1,500 Peace River/Manasota Regional Water Supply Authority (Florida), 10/08 at 101 AAA 1,337,534
Revenue Bonds (Peace River Option Project),
Series 1998A, 5.000%, 10/01/28
------------------------------------------------------------------------------------------------------------------------------------
$ 332,079 Total Investments (cost $317,914,399) - 99.3% 320,826,070
===============---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.7% 2,386,301
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 323,212,371
====================================================================================================================
</TABLE>
* Optional Call Provisions (not covered by the report
of independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust
containing sufficient U.S. Government or U.S.
Government agency securities which ensures the
timely payment of principal and interest. Securities
are normally considered to be equivalent to AAA
rated securities.
N/R Investment is not rated.
(DD) Security purchased on a delayed delivery basis.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
<PAGE>
Nuveen Insured Florida Premium Income Municipal Fund (NFL)
Portfolio of
INVESTMENTS June 30, 2000
<TABLE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION AND CIVIC ORGANIZATIONS - 1.7%
$ 5,325 Escambia County Housing Finance Authority, Dormitory Revenue Bonds 6/09 at 101 AAA $ 5,329,100
(University of West Florida Foundation, Inc. Project),
Series 1999, 5.750%, 6/01/31
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 7.3%
2,500 Alachua County Health Facilities Authority (Florida), Health Facilities 12/02 at 100 AAA 2,513,575
Revenue Bonds, Series 1992R (Shands Hospital at the
University of Florida Project), 5.750%, 12/01/15
2,000 Brevard County Health Facilities Authority, Hospital Revenue Bonds, 10/06 at 101 AAA 2,017,580
Series 1996 (Holmes Regional Medical Center Project), 5.625%, 10/01/14
2,500 Hillsborough County Industrial Development Authority (Florida), No Opt. Call AAA 2,782,250
Industrial Development Revenue Bonds, Series 1994 (University
Community Hospital), 6.500%, 8/15/19
5,000 Hospital Board of Directors of Lee County, Florida, Hospital 4/07 at 102 AAA 4,971,850
Revenue Bonds (Lee Memorial Health System), Fixed Rate Hospital
Revenue Bonds, 1997 Series A, 5.750%, 4/01/22
5,000 North Broward Hospital District (Florida), Refunding and Improvement 1/07 at 101 AAA 4,719,650
Revenue Bonds, Series 1997, 5.375%, 1/15/24
5,710 Polk County Industrial Development Authority, Industrial Development 9/02 at 103 AAA 6,019,939
Variable Rate Revenue Bonds, 1985 Series 2 (Winter Haven Hospital
Project), 6.250%, 9/01/15
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 8.3%
990 Housing Finance Authority of Broward County, Florida, Multifamily Housing 6/07 at 102 AAA 978,130
Revenue Refunding Bonds (Pompano Oaks Apartments Project -
GNMA Collateralized), Series 1997, 6.000%, 12/01/27
(Alternative Minimum Tax)
Housing Finance Authority of Collier County, Florida,
Multifamily Housing Revenue Refunding Bonds, Series 1998A,
Subseries 1 (Saxon Manor Isles Project):
1,040 5.350%, 9/01/18 (Alternative Minimum Tax) 3/08 at 101 AAA 985,317
1,400 5.400%, 9/01/23 (Alternative Minimum Tax) 3/08 at 101 AAA 1,284,010
Housing Finance Authority of Collier County, Florida,
Multifamily Housing Revenue Bonds, Series 1998B (Saxon Manor
Isles Project):
1,260 5.350%, 9/01/18 (Alternative Minimum Tax) 3/08 at 101 AAA 1,193,749
1,000 5.400%, 9/01/23 (Alternative Minimum Tax) 3/08 at 101 AAA 917,150
Housing Finance Authority of Dade County, Florida, Multifamily
Mortgage Revenue Bonds (Siesta Pointe Apartments Project), 1997
Series A:
1,230 5.650%, 9/01/17 (Alternative Minimum Tax) 9/07 at 101 AAA 1,199,558
1,690 5.700%, 9/01/22 (Alternative Minimum Tax) 9/07 at 101 AAA 1,634,146
1,890 5.750%, 9/01/29 (Alternative Minimum Tax) 9/07 at 101 AAA 1,820,070
1,400 Florida Housing Finance Agency, Housing Revenue Bonds, 4/07 at 102 AAA 1,412,978
1997 Series A (Riverfront Apartments Project), 6.250%,
4/01/37 (Alternative Minimum Tax)
1,590 Florida Housing Finance Agency, Housing Revenue Bonds, 12/05 at 102 AAA 1,580,730
1995 Series E (Williamsburg Village Apartments Project),
6.100%, 12/01/20 (Alternative Minimum Tax)
1,000 Florida Housing Finance Agency, Housing Revenue Bonds, 5/06 at 102 AAA 1,011,060
Project), 6.100%, 5/01/16 (Alternative Minimum Tax)
Florida Housing Finance Agency, Housing Revenue Bonds, 1996
Series D-1 (Sterling Palms Apartments Project):
1,000 6.300%, 12/01/16 (Alternative Minimum Tax) 6/06 at 102 AAA 1,018,630
1,500 6.400%, 12/01/26 (Alternative Minimum Tax) 6/06 at 102 AAA 1,526,895
750 Florida Housing Finance Agency, Housing Revenue Bonds, 12/06 at 102 AAA 746,055
1996 Series V (The Crossings at Indian Run Apartments Project),
6.100%, 12/01/26 (Alternative Minimum Tax)
3,605 City of Jacksonville, Florida, Housing Revenue 9/03 at 102 AAA 3,558,495
Refunding Bonds, Series 1993A (GNMA Collateralized - Windermere
Manor Apartments Project), 5.875%, 3/20/28
5,240 Nevada Housing Division Multi-Unit Housing Revenue Bonds, 4/10 at 100 AAA 5,258,288
2000 Series A (Whispering Palms Project), 6.300%, 4/01/32
(Alternative Minimum Tax)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING/SINGLE FAMILY - 5.1%
$ 3,200 Housing Finance Authority of Broward County, Florida, Single Family 4/09 at 101 Aaa $ 2,862,176
Mortgage Revenue Refunding Bonds, Series 1999B, 5.250%, 4/01/31
(Alternative Minimum Tax)
3,995 Duval County Housing Finance Authority, Single Family Mortgage Revenue 10/04 at 102 Aaa 4,109,217
Bonds (GNMA Mortgage-Backed Securities Program), Series 1994, 6.700%,
10/01/26 (Alternative Minimum Tax)
2,180 Escambia County Housing Finance Authority (Florida), Single Family Mortgage 4/02 at 102 Aaa 2,245,531
Revenue Bonds, Series 1992A (Multi-County Program), 6.900%, 4/01/20
(Alternative Minimum Tax)
4,500 Escambia County Housing Finance Authority (Florida), Single Family Mortgage 4/08 at 102 Aaa 3,926,250
Revenue Bonds, Series 1999 (Multi County Program), 5.200%, 4/01/32
(Alternative Minimum Tax)
16,215 Florida Housing Finance Corporation, Homeowner Mortgage Revenue Bonds, 1/10 at 24 21/32 AAA 2,111,031
2000 Series 4, 0.000%, 7/01/30 (Alternative Minimum Tax)
4,495 Florida Housing Finance Corporation, Homeowner Mortgage Revenue Bonds, 1/09 at 31 9/32 AAA 682,970
1999 Series 2, 0.000%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 1.3%
2,000 Dade County, Florida, General Obligation Bonds (Parks Program), 11/07 at 102 AAA 1,854,400
Series 1997, 5.125%, 11/01/22
2,900 State of Florida, Full Faith and Credit, State Board of Education, 6/08 at 101 AAA 2,347,782
Public Education Capital Outlay Bonds, 1997 Series B, 4.500%, 6/01/28
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 21.7%
4,835 Cape Coral, Florida, Capital Improvement Revenue Bonds, 10/09 at 101 Aaa 4,681,827
Series 1999, 5.375%, 10/01/24
4,750 Dade County, Florida, Special Obligation and Refunding Bonds, 10/06 at 102 AAA 4,196,530
Series 1996B, 5.000%, 10/01/35
3,500 State of Florida, Department of Environmental Protection, 7/04 at 101 AAA 3,334,555
Preservation 2000 Revenue Bonds, Series 1994A, 4.900%, 7/01/13
4,500 State of Florida, Department of Environmental Protection, 7/05 at 101 AAA 4,653,135
Preservation 2000 Revenue Bonds, Series 1995A, 5.750%, 7/01/11
1,080 City of Gulf Breeze (Florida), Local Government Loan Program 12/06 at 101 AAA 1,134,259
Revenue Bonds, Remarketed Series 1985B,
5.900%, 12/01/15 (Mandatory put 12/01/10)
1,020 City of Gulf Breeze (Florida), Local Government Loan Program, 12/06 at 101 AAA 1,076,396
Revenue Bonds, Remarketed Series 1985
B, 5.900%, 12/01/15 (Mandatory put 12/01/10)
8,500 City of Gulf Breeze (Florida), Capital Funding Revenue Bonds, 6/08 at 100 AAA 6,903,700
Series 1997B, 4.500%, 10/01/27
1,500 City of Gulf Breeze, Florida, Local Government Loan Program Revenue 12/10 at 101 AAA 1,506,780
Bonds, Series 1985E, Remarketing of 7/3/2000, 5.750%, 12/01/19
(Optional put 12/01/19) (WI)
1,400 Hernando County, Florida, Capital Improvement Refunding Revenue 2/03 at 102 AAA 1,424,990
Bonds, Series 1993, 5.750%, 2/01/14
1,025 Jacksonville Sales Tax Revenue Bonds, Series 1995 (River City 10/05 at 101 AAA 1,048,555
Renaissance Project), 5.500%, 10/01/10
5,000 The School Board of Miami-Dade County, Florida, Certificates of 8/08 at 101 AAA 4,471,400
Participation, Series 1998C (Refunding), 5.000%, 8/01/25
23,000 Miami-Dade County, Florida, Subordinate Special Obligation Bonds, 4/08 at 49 17/32 AAA 6,354,670
Series 1997B, 0.000%, 10/01/21
1,000 City of Opa-Locka, Florida, Capital Improvement Revenue Bonds, 1/04 at 102 AAA 1,078,520
Series 1994, 7.000%, 1/01/14
4,770 School Board of Orange County, Florida, Master Lease Program, 8/07 at 101 Aaa 4,585,067
Certificates of Participation, Series 1997A, 5.375%, 8/01/22
6,000 Orange County, Tourist Development Tax Revenue Bonds, Series 1992B 10/02 at 102 AAA 6,280,200
(Florida), 6.250%, 10/01/13
6,500 Palm Beach County, Florida, Administrative Complex Revenue Refunding No Opt. Call AAA 6,605,105
Bonds, Series 1993, 5.250%, 6/01/11
Palm Beach County, Florida, Criminal Justice Facilities,
Revenue Refunding Bonds, Series 1993:
2,500 5.375%, 6/01/08 No Opt. Call AAA 2,571,275
4,000 5.375%, 6/01/10 No Opt. Call AAA 4,108,120
2,335 Pasco County, Florida, Gas Tax Refunding Revenue Bonds, Series 8/02 at 102 AAA 2,378,594
1992, 5.750%, 8/01/13
<PAGE>
Nuveen Insured Florida Premium Income Municipal Fund (NFL) (continued)
Portfolio of INVESTMENTS June 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TRANSPORTATION - 20.0%
$ 3,000 Dade County, Florida, Aviation Revenue Refunding Bonds (Series Y), 10/03 at 102 AAA $ 3,063,540
5.500%, 10/01/11
Dade County, Florida, Seaport Revenue Refunding Bonds, Series 1995:
1,000 6.200%, 10/01/05 No Opt. Call AAA 1,065,900
1,100 5.750%, 10/01/15 10/05 at 102 AAA 1,122,418
15,000 Cities of Dallas and Fort Worth, Texas, Dallas-Fort Worth International 11/09 at 100 AAA 15,147,000
Airport, Joint Revenue Bonds, Series 2000A, 6.125%, 11/01/35
(Alternative Minimum Tax)
3,000 State of Florida, Department of Transportation, Turnpike Revenue Bonds, 7/05 at 101 AAA 2,936,040
Series 1995A, 5.500%, 7/01/21
2,000 Greater Orlando Aviation Authority, Airport Facilities, Revenue Bonds, 10/02 at 102 AAA 2,060,380
Series 1992A, 6.375%, 10/01/21 (Alternative Minimum Tax)
Greater Orlando Aviation Authority, Airport Facilities Revenue
Bonds, Series 1997:
1,000 5.125%, 10/01/17 (Alternative Minimum Tax) 10/07 at 101 AAA 939,900
4,795 5.250%, 10/01/23 (Alternative Minimum Tax) 10/07 at 101 AAA 4,463,042
11,000 Greater Orlando Aviation Authority (Florida), Airport Facilities 10/09 at 101 AAA 9,844,670
Revenue Bonds, Series 1999A, 5.125%, 10/01/28 (Alternative Minimum Tax)
1,000 Hillsborough County Aviation Authority, Florida, Tampa International 10/03 at 102 AAA 946,630
Airport Revenue Bonds, 1993 Series D, 5.375%, 10/01/23
(Alternative Minimum Tax)
2,350 Jacksonville Port Authority, Airport Revenue Refunding Bonds, 10/03 at 102 AAA 2,243,310
Series 1993, 5.250%, 10/01/17 (Alternative Minimum Tax)
3,800 Jacksonville Port Authority (Florida), 1996 Port Facilities Revenue 11/06 at 102 AAA 3,769,638
Refunding Bonds, 5.625%, 11/01/18 (Alternative Minimum Tax)
15,025 Lee County, Florida, Airport Revenue Bonds, Series 2000A, 6.000%, 10/10 at 101 AAA 15,291,544
10/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 16.9%
3,750 Broward County Health Facilities Authority (Florida), Hospital Revenue 6/03 at 102 AAA 3,895,688
Bonds (Holy Cross Hospital, Inc.), Series 1993, 5.850%, 6/01/12
2,700 City of Cocoa, Florida, Water and Sewer System Improvement Revenue 10/07 at 101 AAA 2,885,517
Bonds, Series 1997, 5.875%, 10/01/26 (Pre-refunded to 10/01/07)
3,000 Florida Municipal Power Agency, All-Requirements Power Supply Project 10/02 at 102 AAA 3,157,680
Revenue Bonds, Series 1992, 6.250%, 10/01/21 (Pre-refunded to 10/01/02)
3,995 State of Florida, Department of Transportation, Turnpike Revenue Bonds, 7/02 at 101 AAA 4,164,947
Series 1992A, 6.350%, 7/01/22 (Pre-refunded to 7/01/02)
930 Orange County, Florida, Water Utilities System Revenue Bonds, Series 4/02 at 102 AAA 972,892
1992, 6.250%, 10/01/17 (Pre-refunded to 4/01/02)
City of Palm Bay, Florida, Utility System Refunding Revenue
Bonds, Series 1994 (Palm Bay Utility Corporation Project):
1,000 6.200%, 10/01/17 (Pre-refunded to 10/01/02) 10/02 at 102 AAA 1,052,170
3,295 6.200%, 10/01/22 (Pre-refunded to 10/01/02) 10/02 at 102 AAA 3,466,900
1,000 City of Port St. Lucie, Florida, Utility System Revenue Bonds, 9/04 at 100 AAA 1,047,280
Series 1994, 6.000%, 9/01/24 (Pre-refunded to 9/01/04)
St. Lucie County, Florida, Utility System Refunding and Revenue
Bonds, Series 1993:
5,000 5.500%, 10/01/15 10/03 at 102 AAA 5,090,150
1,200 5.500%, 10/01/21 10/03 at 102 AAA 1,178,508
7,855 Seminole County, Florida, Water and Sewer Revenue Refunding and 10/19 at 100 AAA 8,245,236
Improvement Bonds, Series 1992, 6.000%, 10/01/19 (Pre-refunded to 10/01/19)
City of Sunrise, Florida, Utility System Revenue Bonds, Series 1996A:
6,900 5.750%, 10/01/16 (Pre-refunded to 10/01/06) 10/06 at 101 AAA 7,295,439
8,700 5.750%, 10/01/21 (Pre-refunded to 10/01/06) 10/06 at 101 AAA 9,198,597
1,500 City of Tampa, Florida, Allegany Health System Revenue Bonds, St. 12/03 at 102 AAA 1,373,805
Joseph's Hospital, Inc. Issue, Series 1993, 5.125%, 12/01/23
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
UTILITIES - 8.0%
$ 1,250 Florida Municipal Power Agency, St. Lucie Project Refunding Revenue 10/02 at 102 AAA $ 1,187,725
Bonds, Series 1992, 5.250%, 10/01/21
1,500 Florida Municipal Power Agency, Tri-City Project Refunding Revenue 10/03 at 100 AAA 1,474,515
Bonds, Series 1992, 5.500%, 10/01/19
City of Lakeland, Florida, Energy System Refunding Revenue Bonds,
Series 1999C:
4,785 6.050%, 10/01/08 No Opt. Call AAA 5,140,669
4,000 6.050%, 10/01/09 No Opt. Call AAA 4,315,400
3,525 Solid Waste Authority of Palm Beach County, Refunding Revenue No Opt. Call AAA 3,768,437
Bonds, Series 1997A, 6.000%, 10/01/09
10,000 Reedy Creek Improvement District (Florida), Utilities Revenue 4/04 at 101 AAA 9,192,700
Series 1994-1, 5.000%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.5%
1,000 City of Cocoa, Florida, Water and Sewer System Refunding Revenue 10/03 at 100 AAA 901,420
Bonds, Series 1993A, 5.000%, 10/01/23
3,000 City of Cocoa, Florida, Water and Sewer System Improvement Revenue 10/09 at 101 AAA 2,447,730
Bonds, Series 1999, 4.500%, 10/01/26
4,000 Florida Governmental Utility Authority, Utility Revenue Bonds 7/09 at 101 Aaa 3,561,040
(Golden Gate Utility System), Series 1999, 5.000%, 7/01/29
2,000 Hillsborough County, Florida, Refunding Utility Revenue Bonds, 8/01 at 102 AAA 2,079,420
Series 1991A, 6.625%, 8/01/11
8,000 Indian River County, Florida, Water and Sewer Revenue Bonds, 9/08 at 102 AAA 7,515,200
Series 1993A, 5.250%, 9/01/24
2,000 Indian Trail Water Control District, Water Control and Improvement 8/07 at 101 AAA 1,963,540
Bonds, Unit of Development No. 17, Series 1996, 5.500%, 8/01/22
1,070 Orange County, Florida, Water Utilities System Revenue Bonds, 4/02 at 102 AAA 1,101,693
Series 1992, 6.250%, 10/01/17
2,250 City of Port Orange, Florida, Water and Sewer Refunding Junior Lien 10/03 at 101 AAA 2,132,595
Revenue Bonds, Series 1993, 5.250%, 10/01/21
3,530 Seminole County, Florida, Water and Sewer Revenue Refunding and No Opt. Call AAA 3,749,777
Improvement Bonds, Series 1992, 6.000%, 10/01/19
1,300 City of Sunrise, Florida, Utility System Revenue Refunding Bonds, 10/06 at 102 AAA 1,362,790
Series 1996, 5.800%, 10/01/11
------------------------------------------------------------------------------------------------------------------------------------
$ 349,425 Total Investments (cost $307,294,012) - 98.8% 310,825,712
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 3,765,604
------------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 314,591,316
====================================================================================================================================
</TABLE>
All of the bonds in the portfolio are either covered by
Original Issue Insurance, Secondary Market Insurance or
Portfolio Insurance, or are backed by an escrow or trust
containing sufficient U.S. Government or U.S. Government
agency securities, any of which ensure the timely payment of
principal and interest.
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Statement of
NET ASSETS June 30, 2000
FLORIDA FLORIDA INSURED FLORIDA
INVESTMENT QUALITY QUALITY INCOME PREMIUM INCOME
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C> <C> <C>
Investments in municipal securities, at market value $360,212,070 $320,826,070 $310,825,712
Cash -- 13,253,113 1,782,999
Receivables:
Interest 6,300,666 4,998,842 4,699,961
Investments sold 11,187,400 175,000 968
Other assets 16,240 12,010 22,989
------------------------------------------------------------------------------------------------------------------------------------
Total assets 377,716,376 339,265,035 317,332,629
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 3,326,118 -- --
Payable for investments purchased 7,529,750 14,719,530 1,500,000
Accrued expenses:
Management fees 189,733 168,408 163,606
Other 105,265 79,904 144,848
Preferred share dividends payable 62,461 44,685 18,241
Common share dividends payable 1,212,598 1,040,137 914,618
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 12,425,925 16,052,664 2,741,313
------------------------------------------------------------------------------------------------------------------------------------
Net assets $365,290,451 $323,212,371 $314,591,316
====================================================================================================================================
Preferred shares, at liquidation value $132,000,000 $117,000,000 $111,000,000
====================================================================================================================================
Preferred shares outstanding 5,280 4,680 4,440
====================================================================================================================================
Common shares outstanding 16,387,383 14,151,994 14,290,929
====================================================================================================================================
Net asset value per Common share outstanding (net assets less Preferred
shares at liquidation value, divided by Common shares outstanding) $ 14.24 $ 14.57 $ 14.25
====================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
Statement of
OPERATIONS Year Ended June 30, 2000
<CAPTION>
FLORIDA FLORIDA INSURED FLORIDA
INVESTMENT QUALITY QUALITY INCOME PREMIUM INCOME
<S> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 22,644,428 $ 19,325,513 $17,739,533
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,323,884 2,069,875 1,996,376
Preferred shares - auction fees 303,177 278,178 278,259
Preferred shares - dividend disbursing agent fees 23,994 30,259 20,053
Shareholders' servicing agent fees and expenses 30,085 23,910 21,322
Custodian's fees and expenses 135,832 104,070 187,918
Trustees' fees and expenses 5,908 5,403 5,004
Professional fees 22,995 8,853 15,421
Shareholders' reports - printing and mailing expenses 13,565 11,677 13,864
Stock exchange listing fees 24,456 24,647 24,338
Investor relations expense 26,945 23,682 23,858
Other expenses 22,808 18,163 23,977
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 2,933,649 2,598,717 2,610,390
Custodian fee credit (53,645) (51,451) (21,822)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 2,880,004 2,547,266 2,588,568
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 19,764,424 16,778,247 15,150,965
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions (981,914) (281,731) (1,206,091)
Change in net unrealized appreciation (depreciation) of investments (10,856,592) (10,646,387) (7,368,863)
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (11,838,506) (10,928,118) (8,574,954)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 7,925,918 $ 5,850,129 $ 6,576,011
====================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement of
CHANGES IN NET ASSETS
FLORIDA INVESTMENT QUALITY FLORIDA QUALITY INCOME
-----------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/00 6/30/99 6/30/00 6/30/99
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 19,764,424 $ 18,796,656 $ 16,778,247 $ 16,066,905
Net realized gain (loss) from investment transactions (981,914) 762,937 (281,731) 585,262
Change in net unrealized appreciation
(depreciation) of investments (10,856,592) (10,614,192) (10,646,387) (9,111,184)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 7,925,918 8,945,401 5,850,129 7,540,983
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net investment income:
Common shareholders (15,344,732) (15,659,441) (12,870,918) (12,703,787)
Preferred shareholders (4,687,633) (3,205,171) (4,122,759) (3,132,338)
From accumulated net realized gains
from investment transactions:
Common shareholders (457,008) (401,089) -- --
Preferred shareholders (120,480) (87,503) -- --
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (20,609,853) (19,353,204) (16,993,677) (15,836,125)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions 652,214 1,297,077 136,196 755,267
Preferred shares - net proceeds from sale of shares 21,678,009 -- 11,786,699 --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital share transactions 22,330,223 1,297,077 11,922,895 755,267
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 9,646,288 (9,110,726) 779,347 (7,539,875)
Net assets at the beginning of year 355,644,163 364,754,889 322,433,024 329,972,899
-----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $365,290,451 $355,644,163 $323,212,371 $322,433,024
===================================================================================================================================
Balance of undistributed net investment
income at the end of year $ 272,846 $ 540,787 $ 334,593 $ 550,023
===================================================================================================================================
<CAPTION>
INSURED FLORIDA PREMIUM INCOME
----------------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED
6/30/00 6/30/99
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 15,150,965 $ 14,703,241
Net realized gain (loss) from investment transactions (1,206,091) 490,709
Change in net unrealized appreciation (depreciation) of investments (7,368,863) (9,873,348)
----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 6,576,011 5,320,602
----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net investment income:
Common shareholders (11,368,439) (10,918,570)
Preferred shareholders (4,044,277) (3,357,270)
From accumulated net realized gains from investment transactions:
Common shareholders -- --
Preferred shareholders -- --
----------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (15,412,716) (14,275,840)
----------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions -- --
Preferred shares - net proceeds from sale of shares -- --
----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital share transactions -- --
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (8,836,705) (8,955,238)
Net assets at the beginning of year 323,428,021 332,383,259
----------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $314,591,316 $323,428,021
============================================================================================================================
Balance of undistributed net investment income at the end of year $ 357,872 $ 619,623
============================================================================================================================
</TABLE>
<PAGE>
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state Funds (the "Funds") covered in this report and their corresponding New
York Stock Exchange symbols are Nuveen Florida Investment Quality Municipal Fund
(NQF), Nuveen Florida Quality Income Municipal Fund (NUF) and Nuveen Insured
Florida Premium Income Municipal Fund (NFL).
Each Fund invests primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities within the state of Florida.
The Funds are registered under the Investment Company Act of 1940 as closed-end,
diversified management investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When price quotes
are not readily available (which is usually the case for municipal securities),
the pricing service establishes fair market value based on yields or prices of
municipal bonds of comparable quality, type of issue, coupon, maturity and
rating, indications of value from securities dealers and general market
conditions. Temporary investments in securities that have variable rate and
demand features qualifying them as short-term securities are valued at amortized
cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At June
30, 2000, Florida Investment Quality, Florida Quality Income and Insured Florida
Premium Income had outstanding when-issued and delayed delivery purchase
commitments of $7,529,750, $14,719,530 and $1,500,000, respectively.
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
when required for federal income tax purposes.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its tax-exempt net
investment income, in addition to any significant amounts of net realized
capital gains and/or market discount realized from investment transactions. The
Funds currently consider significant net realized capital gains and/or market
discount as amounts in excess of $.01 per Common share. Furthermore, each Fund
intends to satisfy conditions which will enable interest from municipal
securities, which is exempt from regular federal income taxes, to retain such
tax-exempt status when distributed to shareholders of the Funds. All income
dividends paid during the fiscal year ended June 30, 2000, have been designated
Exempt Interest Dividends. Net realized capital gain and market discount
distributions are subject to federal taxation.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of distributions are determined in accordance with federal
income tax regulations, which may differ from accounting principles generally
accepted in the United States. Accordingly, temporary over-distributions as a
result of these differences may occur and will be classified as either
distributions in excess of net investment income, distributions in excess of net
realized gains and/or distributions in excess of net ordinary taxable income
from investment transactions, where applicable.
<PAGE>
Notes to
FINANCIAL STATEMENTS (continued)
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in more than one Series. The dividend
rate on each series may change every seven days, as set by the auction agent.
The number of 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 3,080 -- --
Series W -- -- 1,640
Series Th -- 1,700 2,800
Series F 2,200 1,280 --
--------------------------------------------------------------------------------
Total 5,280 4,680 4,440
================================================================================
Effective July 14, 1999, Florida Investment Quality issued 880 Series T $25,000
stated value preferred shares.
Effective July 12, 1999, Florida Quality Income issued 480 Series F $25,000
stated value preferred shares.
Insurance
Insured Florida Premium Income invests in municipal securities which are either
covered by insurance or are backed by an escrow or trust account containing
sufficient U.S. Government or U.S. Government agency securities, both of which
ensure the timely payment of principal and interest. Each insured municipal
security is covered by Original Issue Insurance, Secondary Market Insurance or
Portfolio Insurance. Such insurance does not guarantee the market value of the
municipal securities or the value of the Fund's shares. Original Issue Insurance
and Secondary Market Insurance remain in effect as long as the municipal
securities covered thereby remain outstanding and the insurer remains in
business, regardless of whether the Fund ultimately disposes of such municipal
securities. Consequently, the market value of the municipal securities covered
by Original Issue Insurance or Secondary Market Insurance may reflect value
attributable to the insurance. Portfolio Insurance is effective only while the
municipal securities are held by the Fund. Accordingly, neither the prices used
in determining the market value of the underlying municipal securities nor the
net asset value of the Fund's shares include value, if any, attributable to the
Portfolio Insurance. Each policy of the Portfolio Insurance does, however, give
the Fund the right to obtain permanent insurance with respect to the municipal
security covered by the Portfolio Insurance policy at the time of its sale.
Derivative Financial Instruments
The Funds may invest in transactions in certain derivative financial instruments
including futures, forward, swap, and option contracts, and other financial
instruments with similar characteristics. Although the Funds are authorized to
invest in such financial instruments, and may do so in the future, they did not
make any such investments during the fiscal year ended June 30, 2000.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
<PAGE>
<TABLE>
<CAPTION>
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
FLORIDA INVESTMENT QUALITY FLORIDA QUALITY INCOME
------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/00 6/30/99 6/30/00 6/30/99
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common shares issued to shareholders
due to reinvestment
of distributions 43,053 74,913 8,574 45,825
============================================================================================================
Preferred shares sold 880 -- 480 --
============================================================================================================
<CAPTION>
INSURED FLORIDA
PREMIUM INCOME
------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED
6/30/00 6/30/99
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common shares issued to shareholders
due to reinvestment
of distributions -- --
============================================================================================================
Preferred shares sold -- --
============================================================================================================
</TABLE>
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid August 1, 2000, to shareholders of record on
July 15, 2000, as follows:
<TABLE>
<CAPTION>
INSURED
FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM
QUALITY INCOME INCOME
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Dividend per share $ .0740 $ .0735 $ .0640
=========================================================================================================
</TABLE>
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities during the fiscal year ended June
30, 2000, were as follows:
<TABLE>
<CAPTION>
INSURED
FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM
QUALITY INCOME INCOME
-----------------------------------------------------------------------------------------------------------
Purchases:
<S> <C> <C> <C>
Long-term municipal securities $70,739,422 $84,247,495 $68,413,774
Short-term municipal securities 4,000,000 2,500,000 --
Sales and maturities:
Long-term municipal securities 55,910,689 64,080,245 76,980,869
Short-term municipal securities 4,000,000 2,500,000 --
===========================================================================================================
At June 30, 2000, the identified cost of investments owned for federal income
tax purposes were as follows:
<CAPTION>
INSURED
FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM
QUALITY INCOME INCOME
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$355,513,399 $318,122,589 $307,294,012
============================================================================================================
</TABLE>
<PAGE>
Notes to
FINANCIAL STATEMENTS (continued)
At June 30, 2000, the Funds had unused capital loss carryforwards available for
federal income tax purposes to be applied against future capital gains, if any.
If not applied, the carryforwards will expire as follows:
<TABLE>
<CAPTION>
INSURED
FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM
QUALITY INCOME INCOME
---------------------------------------------------------------------------------------------------------
Expiration year:
<S> <C> <C> <C>
2002 $ -- $327,853 $ 624,284
2003 -- 95,170 555,689
2004 -- 142,676 461,823
2005 -- -- 261,244
2006 -- -- --
2007 -- -- --
2008 405,072 73,540 1,206,091
---------------------------------------------------------------------------------------------------------
Total $405,072 $639,239 $3,109,131
=========================================================================================================
</TABLE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at June 30, 2000, were as follows:
<TABLE>
<CAPTION>
INSURED
FLORIDA FLORIDA FLORIDA
INVESTMENT QUALITY PREMIUM
QUALITY INCOME INCOME
---------------------------------------------------------------------------------------------------------
Gross unrealized:
<S> <C> <C> <C>
appreciation $12,614,062 $ 9,130,129 $ 8,322,479
depreciation (7,915,391) (6,426,648) (4,790,779)
---------------------------------------------------------------------------------------------------------
Net unrealized appreciation $ 4,698,671 $ 2,703,481 $ 3,531,700
=========================================================================================================
</TABLE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net assets of each Fund as follows:
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSETS MANAGEMENT FEE
----------------------------------------------------------------------------------------------------------
<S> <C> <C>
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
==========================================================================================================
</TABLE>
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those 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.
<PAGE>
7. COMPOSITION OF NET ASSETS
At June 30, 2000, 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 $132,000,000 $117,000,000 $111,000,000
Common shares, $.01 par value per share 163,874 141,520 142,909
Paid-in surplus 228,560,131 203,672,016 202,667,966
Balance of undistributed net investment income 272,846 334,593 357,872
Accumulated net realized gain (loss) from investment transactions (982,130) (847,429) (3,109,131)
Net unrealized appreciation of investments 5,275,730 2,911,671 3,531,700
------------------------------------------------------------------------------------------------------------
Net assets $365,290,451 $323,212,371 $314,591,316
============================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited
============================================================================================================
</TABLE>
<PAGE>
Financial HIGHLIGHTS
Selected data for a common share outstanding throughout each year
ended June 30:
<TABLE>
<CAPTION>
Investment Operations Less Distributions
------------------------------- -----------------------------------------------------
Net Net
Net Investment Investment Capital Capital
Realized/ Income to Income to Gains to Gains to
Beginning Net Unrealized Common Preferred Common Preferred
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) Total holders holders+ holders holders+ Total
---------------------------------------------------------------------------------------------------------------
FLORIDA INVESTMENT QUALITY
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000 $ 15.03 $ 1.21 $ (.71) $ .50 $ (.94) $ (.29) $ (.03) $ (.01) (1.27)
1999 15.66 1.16 (.59) .57 (.96) (.20) (.03) (.01) (1.20)
1998 15.55 1.18 .23 1.41 (.99) (.22) (.07) (.02) (1.30)
1997 15.25 1.22 .27 1.49 (.97) (.22) -- -- (1.19)
1996 15.45 1.22 (.18) 1.04 (.99) (.25) -- -- (1.24)
<CAPTION>
FLORIDA QUALITY INCOME
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000 15.37 1.19 (.77) .42 (.91) (.29) -- -- (1.20)
1999 15.96 1.14 (.61) .53 (.90) (.22) -- -- (1.12)
1998 15.66 1.16 .31 1.47 (.92) (.25) -- -- (1.17)
1997 15.26 1.18 .39 1.57 (.92) (.25) -- -- (1.17)
1996 15.29 1.18 -- 1.18 (.93) (.28) -- -- (1.21)
<CAPTION>
INSURED FLORIDA PREMIUM INCOME
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000 14.86 1.06 (.59) .47 (.80) (.28) -- -- (1.08)
1999 15.49 1.03 (.67) .36 (.76) (.23) -- -- (.99)
1998 14.70 1.02 .81 1.83 (.78) (.26) -- -- (1.04)
1997 14.10 1.02 .61 1.63 (.78) (.25) -- -- (1.03)
1996 13.89 1.03 .22 1.25 (.78) (.26) -- -- (1.04)
---------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
-------------------------------------------------------
Total Returns Before Credit
------------------ -----------------------------------------------
Ratio of Net Ratio of Net
Organization Ratio of Investment Ratio of Investment
and Offering Expenses Income to Expenses Income to
Costs and Based to Average Average to Average Average
Preferred Ending Based on Ending Net Assets Net Assets Total Total
Share Net Ending on Net Net Applicable Applicable Net Assets Net Assets
Underwriting Asset Market Market Asset Assets to Common to Common Including Including
Discounts Value Value Value* Value* (000) Shares++ Shares++ Preferred++ Preferred++
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA INVESTMENT QUALITY
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000 $ (.02) $ 14.24 $14.1250 (5.54)% 1.39% $365,290 1.26% 8.45% .80% 5.41%
1999 -- 15.03 16.0000 (1.80) 2.22 355,644 1.15 7.38 .80 5.15
1998 -- 15.66 17.2500 9.08 7.70 364,755 1.14 7.55 .80 5.27
1997 -- 15.55 16.8125 10.68 8.56 361,837 1.15 7.87 .80 5.46
1996 -- 15.25 16.1250 11.60 5.19 355,708 1.15 7.89 .80 5.47
<CAPTION>
FLORIDA QUALITY INCOME
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000 (.02) 14.57 14.1250 (4.28) .87 323,212 1.26 8.08 .80 5.17
1999 -- 15.37 15.7500 2.79 1.88 322,433 1.19 7.13 .81 4.86
1998 -- 15.96 16.1875 7.07 7.98 329,973 1.18 7.26 .81 4.95
1997 -- 15.66 16.0000 13.23 8.89 324,882 1.20 7.63 .81 5.15
1996 -- 15.26 15.0000 8.08 5.94 319,015 1.22 7.64 .82 5.14
<CAPTION>
INSURED FLORIDA PREMIUM INCOME
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000 -- 14.25 13.0000 (5.17) 1.47 314,591 1.30 7.53 .84 4.85
1999 -- 14.86 14.5625 7.98 .73 323,428 1.20 6.58 .80 4.39
1998 -- 15.49 14.1875 7.38 10.87 332,383 1.21 6.69 .80 4.44
1997 -- 14.70 13.9375 9.30 10.01 321,059 1.24 7.08 .81 4.60
1996 -- 14.10 13.5000 12.22 7.15 312,553 1.25 7.18 .81 4.66
------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
---------------------------------------------------------------- Municipal Auction Rate Cumulative
After Credit** Preferred Stock at End of Year
------------------------------------------------------ ----------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Net Assets Net Assets Total Total Aggregate Liquidation
Applicable Applicable Net Assets Net Assets Portfolio Amount and Market Asset
to Common to Common Including Including Turnover Outstanding Value Per Coverage
Shares++ Shares++ Preferred++ Preferred++ Rate (000) Share Per Share
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA INVESTMENT QUALITY
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000 1.24% 8.48% .79% 5.42% 16% $ 132,000 $25,000 $69,184
1999 1.15 7.39 .80 5.16 17 110,000 25,000 80,828
1998 1.14 7.55 .80 5.27 9 110,000 25,000 82,899
1997 1.15 7.87 .80 5.46 4 110,000 25,000 82,236
1996 1.15 7.89 .80 5.47 20 110,000 25,000 80,843
<CAPTION>
FLORIDA QUALITY INCOME
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000 1.23 8.10 .79 5.18 20 117,000 25,000 69,062
1999 1.19 7.13 .81 4.87 16 105,000 25,000 76,770
1998 1.18 7.26 .81 4.95 10 105,000 25,000 78,565
1997 1.20 7.63 .81 5.15 22 105,000 25,000 77,353
1996 1.22 7.64 .82 5.14 19 105,000 25,000 75,956
<CAPTION>
INSURED FLORIDA PREMIUM INCOME
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Year Ended 6/30:
2000 1.29 7.54 .83 4.86 22 111,000 25,000 70,854
1999 1.20 6.58 .80 4.39 11 111,000 25,000 72,844
1998 1.21 6.69 .80 4.44 11 111,000 25,000 74,861
1997 1.24 7.08 .81 4.60 21 111,000 25,000 72,310
1996 1.25 7.18 .81 4.66 26 111,000 25,000 70,395
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Total Return on Market Value is the combination of reinvested dividend
income, reinvested capital gains distributions, if any, and changes in
stock price per share. Total Return on Net Asset Value is the combination
of reinvested dividend income, reinvested capital gains distributions, if
any, and changes in net asset value per share. Total returns are not
annualized.
** After custodian fee credit, where applicable.
+ 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.
<PAGE>
Build Your Wealth
AUTOMATICALLY
Sidebar text: NUVEEN OFFERS A NUMBER OF CONVENIENT WAYS TO ADD TO YOUR PORTFOLIO
AND EARN THE TAX-FREE INCOME YOU NEED TO ACHIEVE YOUR FINANCIAL GOALS.
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares. If you do not
elect to reinvest distributions, all distributions are paid by check or can be
deposited directly into your bank or brokerage account.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. You'll also potentially benefit from dollar-cost averaging, a
technique of investing at regular intervals, which allows you to build a
high-quality, tax-free portfolio conveniently and cost effectively over time.
Dollar-cost averaging does not ensure a profit, nor does it protect you against
loss in a declining market. Because such a plan involves continuous investment
regardless of fluctuating prices, investors should consider their financial
ability to continue purchases through periods of low price levels.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive
a statement showing your total dividends and distributions, the date of
investment, the shares acquired and the price per share, and the total number of
shares you own. Income or capital gains taxes may be payable on dividends or
distributions that are reinvested.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may, of course, change your distribution option or withdraw from
the Plan at any time, should your needs or situation change. Should you with
draw, you can receive a certificate for all whole shares credited to your
reinvestment account and cash payment for fractional shares, or cash payment for
all reinvestment account shares, less brokerage commissions and a $2.50 service
fee. You can also reinvest if your shares are registered in the name of a
brokerage firm, bank, or other nominee. Just ask your investment adviser if the
firm will participate on your behalf. If not, it's easy to have the shares
registered in your name and to apply for a reinvestment account directly.
Participants whose shares are registered in the name of one firm may not be able
to transfer the shares to another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial adviser or call us at (800)
257-8787.
<PAGE>
Fund
INFORMATION
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT
AND SHAREHOLDER SERVICES
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
Each fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 12-month period ended June 30, 2000. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
Serving Investors
FOR GENERATIONS
Photo of: John Nuveen, Sr.
John Nuveen, Sr.
For over a century, generations of Americans have relied on Nuveen Investments
to help them grow and keep the money they've earned. Financial advisors,
investors and their families have associated Nuveen Investments with quality,
expertise and dependability since 1898. That is why financial advisors have
entrusted the assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen Investments' products services can help you
preserve your financial security, and talk with your financial advisor, or call
us at (800) 257-8787 for more information, including a prospectus where
applicable. Please read that information carefully before you invest.
Logo:
Nuveen Investments
Invest well. Look ahead.
LEAVE YOUR MARK.(SM)
Nuveen Investments o 333 West Wacker Drive FAN-1-6-00
Chicago, IL 60606 o www.nuveen.com
