NUVEEN Exchange-Traded Funds
APRIL 30, 1998
Semiannual Report
DEPENDABLE, TAX-FREE INCOME TO HELP YOU KEEP MORE OF WHAT YOU EARN.
NQI
Insured Quality
NIO
Insured Opportunity
NIF
Premier Insured Income
NPX
Insured Premium Income 2
Photo of: People walking along the beach.
<PAGE>
Highlights
As of April 30, 1998
Contents
1 Dear Shareholder
3 Portfolio Manager Roundtable
5 NQI Performance Overview
6 NIO Performance Overview
7 NIF Performance Overview
8 NPX Performance Overview
9 Portfolio of Investments
37 Statement of Net Assets
38 Statement of Operations
39 Statement of Changes in Net Assets
41 Notes to Financial Statements
46 Financial Highlights
48 Building Better Portfolios
49 Fund Information
================================================================================
Credit Quality Performance Highlights
Nuveen Insured Quality Municipal Fund, Inc. (NQI)
o Steady dividend for 9 consecutive months
o Taxable equivalent yield of 8.96% for investors in
the 31% federal income tax bracket
o Taxable equivalent total return on share price
of 12.39% for investors in the 31% federal income
tax bracket
Pie Chart:
Insured 76%
U.S. Guaranteed 24%
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO)
o Steady dividend for 45 consecutive months
o Taxable equivalent yield of 8.68% for investors in
the 31% federal income tax bracket
o Taxable equivalent total return on share price
of 14.10% for investors in the 31% federal income
tax bracket
Pie Chart:
Insured 67%
U.S. Guaranteed 33%
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF)
o Steady dividend for 63 consecutive months
o Taxable equivalent yield of 8.68% for investors in
the 31% federal income tax bracket
o Taxable equivalent total return on share price
of 14.48% for investors in the 31% federal income
tax bracket
Pie Chart:
Insured 61%
U.S. Guaranteed 39%
Nuveen Insured Premium Income Municipal Fund 2 (NPX)
o Steady dividend for 18 consecutive months
o Significantly outperformed Lehman Brothers
Municipal Bond Index *
o Taxable equivalent yield of 8.33% for investors
in the 31% federal income tax bracket
Pie Chart:
Insured 81%
U.S. Guaranteed 19%
================================================================================
A New Benefit for Nuveen Exchange-Traded Fund Shareholders
The benefits of your Nuveen Exchange-Traded Fund just got better. Now investors
with at least $50,000 in Nuveen holdings - including Exchange-Traded Funds are
eligible for a reduction in the sales charge on purchases of Class A shares of
any Nuveen Mutual Fund.
This program is available for any of Nuveen's collection of Premier AdviserSM
equity and municipal bond investments. Now you can diversify your portfolio with
the quality investments you count on from Nuveen and the benefit of reduced
rates.
For more information, contact your financial adviser and ask for a prospectus.
Or call Nuveen Investor Services at (800) 257-8787. Please read it carefully
before you invest.
* The Lehman Municipal Bond Index is an unleveraged index comprised of more than
42,000 separate issues.
<PAGE>
Blow-in copy:
NOW MAY BE THE TIME TO INVEST IN EUROPE
Europe's strong stock markets and continuing economic development are creating
exceptional opportunities for investors around the world. Now may be the time
to move some of your portfolio into European companies by investing in the
Nuveen European Value Fund.
The Nuveen European Value Fund seeks to invest in a portfolio of quality,
currently undervalued European companies that offer the potential for
significant price appreciation. The fund's overall management is provided by
Nuveen, with Institutional Capital Corporation -- Nuveen's Premier Adviser(sm)
for value investing -- serving as portfolio manager.
Diversifying your portfolio with investments in European stocks can provide the
potential for enhanced returns and reduced risk. As a Nuveen investor, you may
be eligible for a reduced sales charge based on the amount of your current
Nuveen holdings.
Investing overseas may present some special risks, and is not for everyone. To
determine if the European Value Fund would help you build a better portfolio,
talk with your financial adviser and ask for a prospectus, which details all
fees and expenses. A prospectus is also available from Nuveen by calling
(800) 621-7227. Please read it carefully before you invest.
(See other side for a Nuveen product listing)
NUVEEN INVESTMENTS CAN HELP
YOU SUSTAIN THE WEALTH OF A LIFETIME
MUTUAL FUNDS
Nuveen European Value Fund
Nuveen Rittenhouse Growth Fund
Growth and Income Stock Fund
Balanced Stock and Bond Fund
Balanced Municipal and Stock Fund
National Municipal Bond Funds
State-Specific Municipal Bond Funds
UNIT TRUSTS
Equity
Corporate Bond
Municipal Bond
EXCHANGE-TRADED FUNDS
MUNI PREFFERED(R)
PRIVATE ASSET MANAGEMENT
<PAGE>
Photo of: Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: Wealth takes a lifetime to build. Once achieved, it should be
preserved.
Mountain Chart:
Bond Buyer 40
4/30/97 5.89
5/31/97 5.74
6/30/97 5.69
7/31/97 5.4
8/31/97 5.55
9/30/97 5.47
10/31/97 5.4
11/30/97 5.36
12/31/97 5.26
1/31/98 5.19
2/28/98 5.24
3/31/98 5.27
4/30/98 5.39
Dear Shareholder
I'm pleased to report that over the past 12 months, the Nuveen national insured
exchange-traded funds continued to perform well and meet their objectives of
providing attractive income and after-tax total returns. As of April 30, 1998,
shareholders were receiving annual current market yields that ranged from 5.75%
to 6.18%. To match these yields, investors in the 31% federal income tax bracket
would have to earn between 8.33% and 8.96% on taxable alternatives.
The declining interest rate environment over the past year had a significant
impact on the funds' performance. As you can see on the chart below, the yield
on the Bond Buyer 40, a representation of the long-term municipal bond market,
fell from 5.89% to 5.39% during the year. The decline had an impact on the
income level of NQI and its divid end was reduced slightly during the year. As
interest rates declined, higher-yielding bonds that were called or sold from the
portfolio had to be replaced with bonds paying today's lower interest rates. As
a result, the fund's dividend had to be reduced to compensate for the lower
levels of income being earned by the portfolios. However, the other three funds
covered in this report (NIO, NIF and NPX) continued to generate steady
dividends, ranging from 18-63 months without a dividend adjustment. In view of
the declining interest rate environment, this tra ck rec ord of steady dividends
remains impressive.
The decline in interest rates also led to many portfolio holdings appreciating
in value during the period. Many of the bonds in the portfolios have higher
coupon rates than are available in today's market, and the value of those bonds
increased as rates trended downward. The price appreciation resulting from this
and other factors led to the funds' strong total returns over the year,
including the outstanding total return on net asset value of 11.32% generated by
NPX.
The Economy in Review
The past 12 months were noteworthy for the ongoing performance of the equity
markets, which continued to exhibit remarkable strength. Fixed-income
investments also enjoyed bullish performance, as declining interest rates and
low inflation provided the ideal backdrop for a bond market rally. Much of the
decline in interest rates resulted from expectations that the financial problems
of Asia would restrain the prices of imported goods and reduce foreign demand
for U.S. products and services, thereby keeping inflation at moderate levels.
These inflation expectations were largely fulfilled, as the Consumer Price Index
rose only 1.4% for the 12 months ended April 1998, remaining at one of its
lowest levels in more than 30 years.
In coming months, we will continue to watch closely several key factors that are
likely to affect the future of the economy, including demand for goods and
services, changes in U.S. production capacity, the availability of qualified
employees, and stability of the money supply. While it is still too early for
the full impact of Asia's financial difficulties to show up in U.S. economic
statistics, the potential long-term effect of this crisis on American markets is
of special concern. We expect that the development of these factors will
continue to influence the tone of the fixed-income markets during the remainder
of the year.
Building Better Portfolios
As economic events unfold, we believe that many investors will find
diversification to be an increasingly important investment strategy. An
appropriately diversified portfolio that is invested in a variety of asset
classes that each react differently to changes in the economic environment can
help cushion your portfolio against risk.
Many investors select Nuveen's exchange-traded funds because their emphasis on
dependable tax-free income and attractive after-tax returns makes them ideal for
building and maintaining long-term financial security. These funds can work
together with other Nuveen investments to create the foundation of a
diversified, well-balanced portfolio. Recent studies by Nuveen Research have
demonstrated that balanced portfolios combining municipal bonds and stocks
provided superior after-tax returns and lower levels of risk compared with
blends of stocks and taxable bonds. You and your financial adviser may want to
consider combining your Nuveen municipal bond fund with an investment in the new
Nuveen European Value Fund, an equity mutual fund that offers a portfolio of
quality European company stocks for investors seeking long-term growth and
international diversification. This fund is just one of an ever-expanding range
of Nuveen products and services designed to help investors achieve
diversification while building a tax-efficient, risk-sensitive investment
portfolio. If you'd like to learn more about the Nuveen European Value Fund or
any of our other investments, contact your financial adviser or call Nuveen
Investor Services for a prospectus at (800) 621-7227. Please read it carefully
before you invest.
When seeking quality investment solutions that withstand the test of time, we
hope that you continue to think of John Nuveen & Co. On behalf of everyone at
Nuveen, I thank you for your continued confidence in us and our family of
investments.
Sincerely,
TIMOTHY R. SCHWERTFEGER
Chairman of the Board
June 15, 1998
Sidebar text: Nuveen offers an ever-expanding range of products designed to help
investors build a diversified, tax-efficient portfolio.
<PAGE>
Nuveen Exchange-Traded Funds
Portfolio Manager Roundtable
Tom Futrell, Steve Krupa, and Tom O'Shaughnessy, portfolio managers of the
Nuveen insured exchange-traded funds, review the past year in the municipal
market and talk about fund performance and opportunities to find value.
What factors influenced the performance of municipal bonds over the past year?
Over the past 12 months, we have enjoyed a bull market in fixed-income
investments, including municipal bonds. Bond prices rose as interest rates
continued to drop and inflation remained at 30-year lows. Although still strong,
the performance of the municipal market was moderated by the effect of heavy
supply, as the lower rate environment stimulated a substantial increase in new
issuance as well as refinancing of existing bonds. The first quarter of 1998 saw
$68 billion of new municipal issuance, up 70% from the same period in 1997.
The flood of new issues continued in recent weeks with May's long-awaited sale
of the first segment of Long Island (New York) Power Authority's $7 billion
offering, the largest issuance in municipal bond history. The publicity
surrounding this issue brought an unusual level of attention to the municipal
market and served to stimulate additional interest in municipal bonds.
How did the funds perform in this environment?
For the year ended April 30, 1998, the Nuveen national insured funds posted
total returns on net asset value that ranged from 9.27% to 11.32%, equivalent to
taxable returns of 12.10% to 13.92% for investors in the 31% federal income tax
bracket. The total returns compare with the unleveraged Lehman Brothers Insured
Municipal Bond Index's annual return of 9.67%. While three of the funds in this
report performed closely in line with the Lehman index, the structure of the
Nuveen Insured Premium Income Municipal Fund 2 (NPX)-including lower coupons and
superior call protection-in conjunction with the current market environment
enabled this fund to outperform the index by 165 basis points.
In addition, the fund's inception date played a role in its outstanding
performance. NPX was assembled in July 1993, while the other three funds have
inception dates between December 1990 and December 1991. Since bond calls
usually start eight to ten years after a fund's inception, the first three
funds have already seen these calls begin to affect their income levels, while
NPX continues to enjoy a more steady income.
Income
These funds have established impressive track records of competitive yields
despite the steady decline of interest rates over the past year. We will
continue to work toward maintaining good call protection in the portfolios,
which will help ensure steady income. However, when a bond is called, sold, or
reaches its maturity date, we must replace it with a bond paying a current
coupon rate. As long as we remain in a lower rate environment, these
transactions could affect the income levels of our funds. Among the funds in
this report, NPX was unique in its ability to use tax-loss carryforwards to
offset taxable gains, allowing the fund to participate in more active trading
and still maintain its current level of income.
Price Appreciation
Two major factors impacted the growth in price appreciation over the past year:
o Declining interest rates: Because these funds were assembled in the
higher interest rate environment of the late 1980s and early 1990s, their
underlying bonds appreciated in value as rates fell. The coupon rates of these
bonds are also higher than those available in the current market, making the
income level offered by these funds more attractive.
o Pre-refundings: Declining interest rates also meant an increased number of
pre-refundings. In a pre-refunding, a bond issue is essentially repaid early and
becomes secured by U.S. government or agency securities until it can be called
by the issuer. When bonds are pre-refunded and backed by Treasury securities,
their credit quality improves, resulting in price appreciation. These funds
have large percentages of pre-refunded bonds, which led to additional price
appreciation.
Where did you find value in the current market?
The heavy supply of new issues played a large role in our ability to find value
investing opportunities over the past year. The growing new issue supply forced
issuers and underwriters to customize the structure of new deals by including
attractive features such as above-market yields, flexible pricing and special
call provisions. This created several opportunities, especially in undervalued
areas such as FHA-insured hospitals and housing bonds. Heavy volume also enabled
us to purchase bonds with favorable structures at attractive prices in smaller
states such as Arkansas, Kentucky, Michigan and Ohio.
Backed by Nuveen Research, we also took advantage of the opportunities presented
by deregulation to select bonds in the health care and electric utilities
sectors that offered both value and strong appreciation potential.
What are your key strategies for the future?
In the coming year, we will continue to work toward improving the general
structure of the funds through diversifying call risk and incrementally
increasing portfolio duration. With NPX, we plan to continue to take advantage
of earlier tax losses to sell premium bonds without incurring taxable capital
gains for our shareholders.
Our focus remains on selecting undervalued securities that provide
attractive income and the opportunity for price appreciation. The
research-intensive bond selection process in which Nuveen excels will help us
identify those issues that are well prepared to thrive in the current
environment.
<PAGE>
Nuveen Insured Quality Municipal Fund, Inc.
Performance Overview
As of April 30, 1998
NQI
Portfolio Statistics
==================================================
Inception Date 12/90
- --------------------------------------------------
Share Price 15 7/16
- --------------------------------------------------
Net Asset Value $15.60
- --------------------------------------------------
Current Market Yield 6.18%
- --------------------------------------------------
Taxable Equivalent Yield(1) 8.96%
- --------------------------------------------------
Fund Net Assets ($000) $847,263
- --------------------------------------------------
Average Weighted Maturity (Years) 23.56
- --------------------------------------------------
Leverage-Adjusted Duration (Years) 8.58
==================================================
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 9.43% 9.53%
- --------------------------------------------------
3-Year 8.42% 7.89%
- --------------------------------------------------
5-Year 5.39% 6.38%
- --------------------------------------------------
Since Inception 7.36% 8.54%
==================================================
Taxable Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 12.39% 12.47%
- --------------------------------------------------
3-Year 11.46% 10.88%
- --------------------------------------------------
5-Year 8.49% 9.45%
- --------------------------------------------------
Since Inception 10.43% 11.64%
==================================================
Top 5 Sectors
U.S. Guaranteed 24%
- --------------------------------------------------
Health Care 21%
- --------------------------------------------------
Utilities 15%
- --------------------------------------------------
Housing (Single-Family) 14%
- --------------------------------------------------
Tax Obligation (Limited) 8%
- --------------------------------------------------
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
based on current market yield and a federal income tax rate of 31%.
2 Taxable equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
3 The fund also paid shareholders taxable distributions in December of $0.0100
per share.
Bar Chart:
1997-1998 Monthly Tax-Free Dividends(3)
5/97 0.082
6/97 0.082
7/97 0.082
8/97 0.0795
9/97 0.0795
10/97 .0795
11/97 0.0795
12/97 0.0795
1/98 0.0795
2/98 0.0795
3/98 0.0795
4/98 0.0795
<PAGE>
Nuveen Insured Municipal Opportunity Fund, Inc.
Performance Overview
As of April 30, 1998
NIO
Portfolio Statistics
==================================================
Portfolio Statistics
Inception Date 9/91
- --------------------------------------------------
Share Price 15 15/16
- --------------------------------------------------
Net Asset Value $15.68
- --------------------------------------------------
Current Market Yield 6.17%
- --------------------------------------------------
Taxable Equivalent Yield(1) 8.94%
- --------------------------------------------------
Fund Net Assets ($000) $1,858,684
- --------------------------------------------------
Average Weighted Maturity (Years) 22.69
- --------------------------------------------------
Leverage-Adjusted Duration (Years) 7.95
==================================================
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 11.11% 9.49%
- --------------------------------------------------
3-Year 11.15% 8.44%
- --------------------------------------------------
5-Year 7.87% 6.93%
- --------------------------------------------------
Since Inception 7.68% 8.38%
==================================================
Taxable Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 14.10% 12.48%
- --------------------------------------------------
3-Year 14.24% 11.46%
- --------------------------------------------------
5-Year 11.00% 9.98%
- --------------------------------------------------
Since Inception 10.70% 11.37%
==================================================
Top 5 Sectors
U.S. Guaranteed 33%
- --------------------------------------------------
Utilities 15%
- --------------------------------------------------
Health Care 15%
- --------------------------------------------------
Housing (Single-Family) 13%
- --------------------------------------------------
Tax Obligation (Limited) 6%
- --------------------------------------------------
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 based on current market yield and a federal income tax rate of 31%.
2 Taxable equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
Bar Chart:
1997-1998 Monthly Tax-Free Dividends
5/97 0.082
6/97 0.082
7/97 0.082
8/97 0.082
9/97 0.082
10/97 0.082
11/97 0.082
12/97 0.082
1/98 0.082
2/98 0.082
3/98 0.082
4/98 0.082
<PAGE>
Nuveen Premier Insured Municipal Income Fund, Inc.
Performance Overview
As of April 30, 1998
NIF
Portfolio Statistics
==================================================
Inception Date 12/91
- --------------------------------------------------
Share Price 15 5/8
- --------------------------------------------------
Net Asset Value $15.74
- --------------------------------------------------
Current Market Yield 5.99%
- --------------------------------------------------
Taxable Equivalent Yield(1) 8.68%
- --------------------------------------------------
Fund Net Assets ($000) $442,018
- --------------------------------------------------
Average Weighted Maturity (Years) 19.73
- --------------------------------------------------
Leverage-Adjusted Duration (Years) 8.25
==================================================
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 11.57% 9.27%
- --------------------------------------------------
3-Year 11.03% 7.98%
- --------------------------------------------------
5-Year 7.10% 6.84%
- --------------------------------------------------
Since Inception 7.02% 8.09%
==================================================
Taxable Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 14.48% 12.10%
- --------------------------------------------------
3-Year 14.04% 10.83%
- --------------------------------------------------
5-Year 10.13% 9.74%
- --------------------------------------------------
Since Inception 9.92% 10.92%
==================================================
Top 5 Sectors
U.S. Guaranteed 39%
- --------------------------------------------------
Utilities 16%
- --------------------------------------------------
Health Care 13%
- --------------------------------------------------
Tax Obligation (Limited) 10%
- --------------------------------------------------
Housing (Multifamily) 6%
- --------------------------------------------------
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
based on current market yield and a federal income tax rate of 31%.
2 Taxable equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
3 The fund also paid shareholders taxable distributions in December of $0.0211
per share.
Bar Chart:
1997-1998 Monthly Tax-Free Dividends(3)
5/97 0.078
6/97 0.078
7/97 0.078
8/97 0.078
9/97 0.078
10/97 0.078
11/97 0.078
12/97 0.078
1/98 0.078
2/98 0.078
3/98 0.078
4/98 0.078
<PAGE>
Nuveen Insured Premium Income Municipal Fund 2
Performance Overview
As of April 30, 1998
NPX
Portfolio Statistics
==================================================
Inception Date 7/93
- --------------------------------------------------
Share Price 12 5/8
- --------------------------------------------------
Net Asset Value $13.61
- --------------------------------------------------
Current Market Yield 5.75%
- --------------------------------------------------
Taxable Equivalent Yield(1) 8.33%
- --------------------------------------------------
Fund Net Assets ($000) $775,800
- --------------------------------------------------
Average Weighted Maturity (Years) 17.57
- --------------------------------------------------
Leverage-Adjusted Duration (Years) 8.66
==================================================
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 15.02% 11.32%
- --------------------------------------------------
3-Year 12.54% 9.72%
- --------------------------------------------------
Since Inception 2.42% 4.99%
==================================================
Taxable Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 17.90% 13.92%
- --------------------------------------------------
3-Year 15.54% 12.38%
- --------------------------------------------------
Since Inception 5.19% 7.55%
==================================================
Top 5 Sectors
Tax Obligation (General) 20%
- --------------------------------------------------
U.S. Guaranteed 19%
- --------------------------------------------------
Utilities 15%
- --------------------------------------------------
Tax Obligation (Limited) 11%
- --------------------------------------------------
Housing (Multifamily) 10%
- --------------------------------------------------
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
based on current market yield and a federal income tax rate of 31%.
2 Taxable equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
3 The fund also paid shareholders taxable distributions in December of $0.0063
per share.
Bar Chart:
1997-1998 Monthly Tax-Free Dividends(3)
5/97 0.0605
6/97 0.0605
7/97 0.0605
8/97 0.0605
9/97 0.0605
10/97 0.0605
11/97 0.0605
12/97 0.0605
1/98 0.0605
2/98 0.0605
3/98 0.0605
4/98 0.0605
<PAGE>
<TABLE>
Portfolio of Investments
NUVEEN INSURED QUALITY MUNICIPAL FUND, INC. (NQI)
April 30, 1998
(Unaudited)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alabama - 1.0%
$ 8,500,000 The Special Care Facilities Financing Authority of the City of Birmingham-Medical Center East,
Health Care Facility Revenue Refunding Bonds, Medical Center East, Series 1986 (Birmingham,
Alabama), 7.250%, 7/01/15 5/98 at 101 Aaa $ 8,544,540
- ------------------------------------------------------------------------------------------------------------------------------------
Alaska - 0.6%
5,000,000 Municipality of Anchorage, Alaska, Senior Lien Refunding Electric Revenue Bonds, 1989,
7.125%, 6/01/06 6/99 at 102 Aaa 5,261,800
- ------------------------------------------------------------------------------------------------------------------------------------
Arizona - 5.2%
5,000,000 City of Phoenix, (Arizona), Civic Improvement Corporation, Wastewater System Lease Revenue
Bonds, Series 1993, 6.125%, 7/01/23 (Pre-refunded to 7/01/03) 7/03 at 102 AAA 5,480,500
10,000,000 Industrial Development Authority of The County of Pima (Arizona), Health Care System Revenue
Bonds, Carondelet Health Services, Inc., St. Joseph's and St. Mary's Hospitals and Health Centers
Issue, Series 1991, 6.750%, 7/01/16 7/01 at 102 Aaa 10,805,900
10,000,000 Business Development Finance Corporation, Tucson (Arizona), Local Development Lease Revenue
Refunding Bonds, Series 1992, 6.250%, 7/01/08 7/02 at 102 Aaa 10,843,800
15,250,000 City of Tucson, Arizona, Water System Revenue Bonds, Series 1991, 7.100%, 7/01/18
(Pre-refunded to 7/01/01) 7/01 at 102 Aaa 16,798,943
- ------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 2.3%
9,450,000 Arkansas Development Finance Authority, Single Family Mortgage Revenue Bonds, 1995 Series B
(Mortgage-Backed Securities Program), 6.700%, 7/01/27
(Alternative Minimum Tax) 7/05 at 102 AAA 10,123,596
Pope County, Arkansas, Solid Waste Disposal Revenue Bonds,
Series 1991 (Arkansas Power and Light Company Project):
6,400,000 8.000%, 1/01/21 (Alternative Minimum Tax) 1/01 at 102 BBB 6,996,352
2,250,000 8.000%, 1/01/21 (Alternative Minimum Tax) 1/01 at 102 Aaa 2,468,993
- ------------------------------------------------------------------------------------------------------------------------------------
California - 10.5%
11,000,000 California Health Facilities Financing Authority, Insured Revenue Bonds (Sutter Health),
Series 1998A, 5.000%, 8/15/37 8/08 at 101 Aaa 10,301,610
California Housing Finance Agency Home Mortgage Revenue Bonds, 1997 Series E:
3,000,000 5.650%, 8/01/17 (Alternative Minimum Tax) 8/07 at 102 Aaa 3,098,160
14,075,000 5.750%, 2/01/29 (Alternative Minimum Tax) 8/07 at 102 Aaa 14,509,073
5,500,000 California Statewide Communities Development Authority, Certificates of Participation, The Salk Institute
For Biological Studies, San Diego, California, 6.200%, 7/01/24 7/04 at 102 AAA 5,967,060
9,830,000 Certificates of Participation (1991 Financing Project), County of Alameda, California, Alameda County
Public Facilities Corporation, 6.000%, 9/01/21 9/06 at 102 Aaa 10,476,912
12,695,000 Antioch Area Public Facilities Financing Agency, Community Facilities District No. 1989-1,
Series 1993 Special Tax Bonds, 5.000%, 8/01/18 8/02 at 102 Aaa 12,254,991
5,000,000 Inland Empire Solid Waste Financing Authority, Revenue Bonds, 1996 Series B (Landfill
Improvement Financing Project), 6.000%, 8/01/16
(Alternative Minimum Tax) 8/06 at 102 Aaa 5,302,050
11,270,000 Los Angeles County Metropolitan Transportation Authority (California), Proposition A,
Sales Tax Revenue Refunding Bonds, Series 1993-A, 5.000%, 7/01/21 7/03 at 100 Aaa 10,806,578
6,910,000 Ontario Development Financing Authority (San Bernardino County, California), 1993 Revenue Bonds
(Ontario Redevelopment Project No. 1), 5.850%, 8/01/22 8/03 at 102 Aaa 7,277,888
8,500,000 Airports Commission, City and County of San Francisco, California, San Francisco International
Airport, Second Series Revenue Bonds, Issue 11 (Noise Insulation Program),
6.250%, 5/01/26 (Alternative Minimum Tax) 5/05 at 101 Aaa 9,066,780
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Colorado - 3.9%
Colorado Health Facilities Authority, Insured Hospital Revenue
Bonds (PSL Healthcare System Project) Series 1991A:
$ 5,000,000 7.250%, 2/15/16 (Pre-refunded to 2/15/01) 2/01 at 102 Aaa $ 5,480,800
4,500,000 6.250%, 2/15/21 (Pre-refunded to 2/15/01) 2/01 at 102 Aaa 4,817,970
8,500,000 Sisters of Charity of Leavenworth, Health Services Corporation, Colorado Health Facilities
Authority Revenue Bonds, Series 1998, 5.000%, 12/01/25 6/08 at 101 Aaa 8,073,130
1,935,000 Adams County, Colorado, Single Family Revenue Refunding Bonds,
1991 Series A-2, 8.700%, 6/01/12 6/01 at 103 Aaa 2,092,199
5,630,000 Public Highway Authority, Arapahoe County, Colorado, Capital Improvement Trust Fund Highway
Revenue Bonds (E-470 Project), Vehicle Registration Fee Bonds,
6.150%, 8/31/26 8/05 at 103 Aaa 6,169,804
180,000 El Paso County, Colorado, Colorado Local Single Family Mortgage Revenue Bonds,
1990 Series A, 7.850%, 9/01/09 (Alternative Minimum Tax) 9/00 at 102 AAA 188,237
5,000,000 Jefferson County School District No. R-1 (Jefferson County, Colorado, General Obligation Bonds,
Series 1998A, 5.000%, 12/15/17 12/08 at 101 Aaa 4,847,700
1,010,000 Jefferson County, Colorado, Single Family Revenue Refunding Bonds, Series 1991A,
8.875%, 10/01/13 4/01 at 103 Aaa 1,078,488
- ------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 1.3%
10,000,000 District of Columbia (Washington, D.C.), General Obligation Bonds (Series 1990B),
7.500%, 6/01/10 (Pre-refunded to 6/01/00) 6/00 at 102 Aaa 10,850,500
- ------------------------------------------------------------------------------------------------------------------------------------
Florida - 1.3%
10,115,000 Florida Housing Finance Agency, Single Family Mortgage Revenue Bonds, 1994 Series B, 6.650%, 7/01/26
(Alternative Minimum Tax) 7/04 at 102 Aaa 10,741,422
- ------------------------------------------------------------------------------------------------------------------------------------
Hawaii - 2.8%
6,130,000 Department of Budget and Finance of the State of Hawaii, Special Purpose Revenue Bonds
(Hawaiian Electric Company, Inc. and Subsidiaries Projects), Series 1992, 6.550%, 12/01/22
(Alternative Minimum Tax) 12/02 at 103 Aaa 6,662,574
16,180,000 Department of Budget and Finance of the State of Hawaii, Special Purpose Revenue Bonds
(Hawaii Electric Company, Inc. and Subsidiaries Projects), Series 1996A, 6.200%, 5/01/26
(Alternative Minimum Tax) 5/06 at 101 Aaa 17,247,718
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 8.8%
18,880,000 Illinois Health Facilities Authority, FHA Insured Mortgage Revenue Bonds, Series 1996
(Sinai Health System), 6.000%, 2/15/24 2/06 at 102 Aaa 19,892,534
5,000,000 Central Lake County Joint Action Water Agency, Lake County, Illinois, Water Revenue Bonds,
Series 1991, 7.000%, 5/01/20 (Pre-refunded to 5/01/01) 5/01 at 102 Aaa 5,473,150
10,000,000 City of Chicago, General Obligation Bonds, Project Series 1995,
6.125%, 1/01/16 7/05 at 102 Aaa 10,802,100
10,000,000 Chicago School Reform Board of Trustees of the Board of Education of the City of Chicago, Illinois,
Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1997A,
5.250%, 12/01/30 12/07 at 102 Aaa 9,681,400
6,000,000 City of Chicago, Chicago-O'Hare International Airport, General Airport Second Lien Revenue
Refunding Bonds, 1994 Series A, 6.375%, 1/01/12 1/05 at 102 Aaa 6,571,080
6,280,000 Public Building Commission of Chicago (Illinois), Building Revenue Bonds, Series A of 1990
(Board of Education of the City of Chicago), 7.125%, 1/01/15 1/00 at 102 Aaa 6,677,775
6,825,000 Public Building Commission of Chicago (Illinois) Building Revenue Bonds, Series A of 1993
(Board of Education of the City of Chicago), 5.750%, 12/01/18 12/03 at 102 Aaa 7,066,127
355,000 City of Moline, Illinois, City of Rock Island, Illinois, City of Urbana, Illinois, Single Family
Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities Program), Series 1990,
8.050%, 8/01/23 (Alternative Minimum Tax) 8/00 at 102 Aaa 372,228
7,700,000 Board of Trustees of Southern Illinois University, Southern Illinois University Medical
Facilities System Revenue Bonds, Series 1997, 5.875%, 4/01/23 4/07 at 102 Aaa 8,115,415
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Indiana - 6.3%
$ 9,050,000 Indiana Development Finance Authority, Environmental Revenue Bonds, Series 1993B
(PSI Energy, Inc.), 5.750%, 2/15/28 (Alternative Minimum Tax) 2/03 at 102 Aaa $ 9,222,131
2,230,000 Indiana Housing Finance Authority, Residential Mortgage Bonds, 1988 Series R-A,
8.375%, 1/01/20 (Alternative Minimum Tax) 1/99 at 102 1/2 Aa 2,305,329
9,005,000 Indiana Housing Finance Authority, Single Family Mortgage Revenue Bonds (GNMA Collateralized
Home Mortgage Program), 1990 Series C, 7.800%, 1/01/22
(Alternative Minimum Tax) 7/00 at 102 Aaa 9,425,534
6,000,000 Jasper County, Indiana, Collateralized Pollution Control Refunding Revenue Bonds (Northern
Indiana Public Service Company Project), Series 1991, 7.100%, 7/01/17 7/01 at 102 Aaa 6,516,960
9,645,000 Marion County Convention and Recreational Facilities Authority (Indiana), Excise Taxes Lease
Rental Revenue Bonds, Series 1991B, 7.000%, 6/01/21
(Pre-refunded to 6/01/01) 6/01 at 102 Aaa 10,574,103
4,230,000 City of Rockport, Indiana, Pollution Control Revenue Refunding Bonds (Indiana Michigan Power
Company Project), Series B, 7.600%, 3/01/16 3/01 at 102 Aaa 4,622,375
10,000,000 Hospital Authority of St. Joseph County (Indiana), Fixed Rate Hospital Revenue Refunding Bonds,
Series 1991A (Memorial Hospital of South Bend Project), 7.000%, 8/15/20
(Pre-refunded to 8/15/01) 8/01 at 102 Aaa 10,995,100
- ------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.7%
5,305,000 City of Mason City, Iowa, Hospital Revenue Bonds (Sisters of Mercy Health Corporation),
1991 Series L, 7.000%, 8/15/21 (Pre-refunded to 8/15/01) 8/01 at 102 Aaa 5,839,797
- ------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 2.6%
2,195,000 Louisiana Housing Finance Agency, GNMA Collateralized Single Family Mortgage Revenue Bonds,
Series 1988, 8.300%, 11/01/20 (Alternative Minimum Tax) 11/98 at 102 Aaa 2,262,628
13,170,000 City of New Orleans, Louisiana, General Obligation Refunding Bonds, Series 1995,
6.200%, 10/01/21 10/05 at 102 Aaa 14,307,098
5,440,000 Orleans Levee District (A Political Subdivision of the State of Louisiana), Public Improvement Bonds,
Series 1986, 5.950%, 11/01/15 12/05 at 103 Aaa 5,786,909
- ------------------------------------------------------------------------------------------------------------------------------------
Maine - 1.6%
12,745,000 Maine State Housing Authority, Mortgage Purchase Bonds, 1991 Series A,
7.400%, 11/15/22 5/01 at 102 Aaa 13,534,553
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 2.0%
7,100,000 Massachusetts Housing Financing Agency, Single Family Housing Revenue Bonds, Series 12,
7.500%, 12/01/13 6/99 at 102 Aaa 7,409,773
10,000,000 Massachusetts Turnpike Authority Metropolitan Highway System Revenue Bonds, 1997 Series A
(Senior), 5.000%, 1/01/37 1/07 at 102 Aaa 9,399,000
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan - 1.8%
16,500,000 Michigan State Hospital Finance Authority Revenue and Refunding Bonds (St. John Health System),
Series 1998 A, 5.000%, 5/15/28 5/08 at 101 Aaa 15,523,860
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 1.5%
10,935,000 Minnesota/Saint Paul Housing Finance Board (Single Family Mortgage Revenue Bonds) (Minneapolis/
Saint Paul Family Housing Program, Phase VI), 8.300%, 8/01/21
(Alternative Minimum Tax) 8/98 at 102 AAA 11,225,434
1,622,000 City of St. Louis Park, Minnesota, Single Family Residential Mortgage Revenue Refunding
Bonds (GNMA Mortgage-Backed Securities Program), Series 1991-A,
7.250%, 4/20/23 4/01 at 102 Aaa 1,708,599
- ------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 2.7%
8,700,000 Mississippi Home Corporation, Single Family Mortgage Revenue Bonds, Series 1996C,
7.600%, 6/01/29 (Alternative Minimum Tax) 6/06 at 105 Aaa 9,834,828
5,570,000 Mississippi Housing Finance Corporation, Single Family Mortgage Purchase Revenue Bonds, Series 1989
(GNMA Mortgage-Backed Securities Program), 8.250%, 10/15/18
(Alternative Minimum Tax) 10/99 at 102 Aaa 5,862,091
2,545,000 Harrison County, Wastewater Management District (Mississippi), Wastewater Treatment Facilities
Revenue Refunding Bonds, Series 1991A, 8.500%, 2/01/13 No Opt. Call Aaa 3,445,446
2,715,000 Harrison County, Wastewater Management District (Mississippi), Wastewater Treatment Facilities
Revenue Refunding Bonds, Series 1991B, 7.750%, 2/01/14 No Opt. Call Aaa 3,490,730
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Missouri - 0.6%
$ 5,000,000 St. Louis Municipal Finance Corporation, City Justice Center, Leasehold Revenue Improvement
Bonds, Series 1996A (City of St. Louis, Missouri, Lessee),
6.000%, 2/15/19 2/06 at 102 Aaa $ 5,327,150
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada - 2.1%
3,270,000 Clark County, Nevada, Industrial Development Revenue Bonds (Nevada Power Company Project),
Series 1990, 7.800%, 6/01/20 (Alternative Minimum Tax) 6/00 at 102 Aaa 3,531,764
13,185,000 Washoe County, Nevada, Hospital Refunding Revenue Bonds (Washoe Medical Center, Inc.
Project), Series 1994A, 6.000%, 6/01/19 6/04 at 102 Aaa 13,837,921
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 0.5%
3,750,000 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Monmouth Medical
Center Issue, Series C, 6.250%, 7/01/24 7/04 at 102 Aaa 4,076,250
- ------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 2.6%
3,850,000 New Mexico Mortgage Finance Authority, Multifamily Housing Refunding Revenue Bonds,
1990 Series A-Tax-exempt (Fannie Mae Collateralized), 7.625%, 1/01/24 1/01 at 102 AAA 4,125,699
5,000,000 City of Albuquerque, New Mexico, Airport Revenue Bonds, Series 1995A, 6.600%, 7/01/16
(Alternative Minimum Tax) 7/00 at 105 Aaa 5,430,350
6,000,000 City of Farmington, New Mexico, Pollution Control Refunding Revenue Bonds (Southern California
Edison Company Four Corners Project), 1991 Series A, 7.200%, 4/01/21 4/01 at 102 A+ 6,499,440
5,750,000 City of Santa Fe, New Mexico, Revenue Bonds, Series 1994A, 6.300%, 6/01/24
(Pre-refunded to 6/01/04) 6/04 at 100 Aaa 6,316,260
- ------------------------------------------------------------------------------------------------------------------------------------
New York - 14.0%
7,000,000 New York State Energy Research and Development Authority, Facilities Refunding Revenue
Bonds, Series 1995 (Consolidated Edison Company of New York,
Inc. Project), 6.100%, 8/15/20 7/05 at 102 A1 7,445,340
11,950,000 New York State Finance Agency, Housing Project Mortgage Revenue Bonds, 1996 Series A Refunding,
6.125%, 11/01/20 5/06 at 102 Aaa 12,881,025
12,860,000 New York State Medical Care Facilities Agency, Hospital and Nursing Home Insured
Mortgage Revenue Bonds, 1989 Series A, 7.600%, 2/15/29 2/99 at 102 AA 13,440,500
20,250,000 New York State Medical Care Facilities Finance Agency, St
Luke's-Roosevelt Hospital Center FHA-Insured Mortgage Revenue
Bonds, 1989 Series B, 7.450%, 2/15/29 (Pre-refunded to 2/15/00)
2/00 at 102Aaa 21,799,733
12,000,000 New York State Medical Care Facilities Finance Agency, New York
Hospital FHA-Insured Mortgage Revenue Bonds, 1994 Series A
(AMBAC Insured Series), 6.900%, 8/15/34
(Pre-refunded to 2/15/05) 2/05 at 102 Aaa 13,832,640
5,000,000 State of New York Mortgage Agency, Homeowner Mortgage Revenue Bonds, Series MM-1,
7.950%, 10/01/21 (Alternative Minimum Tax) 2/01 at 102 Aa2 5,373,950
The City of New York, General Obligation Bonds, Fiscal 1991 Series A:
2,000,000 8.000%, 3/15/11 3/00 at 101 1/2 Aaa 2,157,220
6,000,000 7.250%, 3/15/19 3/00 at 101 1/2 Aaa 6,389,280
17,700,000 New York City Housing Development Corporation, Multi-Unit Mortgage Refunding Bonds (FHA Insured
Mortgage Loans), 1991 Series A, 7.250%, 6/01/19 6/01 at 102 Aaa 18,887,316
10,335,000 New York City, New York, Municipal Water Finance Authority, Water and Sewer System Revenue
Bonds, Fiscal 1996 Series A, 6.000%, 6/15/25 (Pre-refunded to 6/15/05) 6/05 at 101 Aaa 11,375,528
5,000,000 New York City Transit Authority, Transit Facilities Revenue Bonds, Series 1990 (Livingston Plaza
Project), 7.500% 1/01/20 (Pre-refunded to 1/01/00) 1/00 at 102 Aaa 5,375,200
- ------------------------------------------------------------------------------------------------------------------------------------
North Dakota - 2.7%
21,075,000 Mercer County, North Dakota, Pollution Control Refunding Revenue Bonds, Second 1995 Series
(Basin Electric Power Cooperative-Antelope Valley Unit 1 and
Common Facilities), 6.050%, 1/01/19 1/05 at 102 Aaa 22,416,424
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio - 0.6%
5,000,000 County of Lucas, Ohio Hospital Improvement and Refunding Revenue Bonds, Series 1993
(The Toledo Hospital), 5.000%, 11/15/22 11/03 at 102 Aaa 4,749,200
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Oklahoma - 1.5%
$ 1,540,000 Oklahoma Housing Finance Agency, Single Family Mortgage Revenue Bonds, 1991 Series A,
7.200%, 3/03/11 3/01 at 102 Aaa $ 1,625,393
9,900,000 Pottawatomie County Development Authority, Water Revenue Bonds, Series 1990 (North Deer
Creek Reservoir Project), 7.375%, 7/01/26 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 10,748,034
- ------------------------------------------------------------------------------------------------------------------------------------
Oregon - 1.2%
10,000,000 Oregon Health Sciences University, Insured Revenue Bonds, 1995 Series B,
5.250% 7/01/25 7/06 at 102 Aaa 9,856,800
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 5.2%
7,000,000 County of Allegheny, Pennsylvania, Airport Revenue Refunding Bonds, Series 1997A,
(Pittsburgh International Airport), 5.250%, 1/01/16
(Alternative Minimum Tax) 1/08 at 101 Aaa 6,904,380
7,000,000 Berks County Municipal Authority (Pennsylvania), Hospital Revenue Bonds (The Reading Hospital and
Medical Center Project), Series B of 1994, 6.100%, 10/01/23 10/04 at 102 Aaa 7,507,990
7,250,000 Lehigh County Industrial Development Authority, Pollution Control Revenue Refunding Bonds,
1995 Series A (Pennsylvania Power and Light Company Project),
6.150%, 8/01/29 8/05 at 102 Aaa 7,805,278
14,190,000 City of Philadelphia, Pennsylvania, Water and Sewer Revenue Bonds, Sixteenth Series, 7.000%, 8/01/21
(Pre-refunded to 8/01/01) 8/01 at 102 Aaa 15,607,865
5,000,000 Health Care Facilities Authority of Sayre (Pennsylvania), Series 1991A Revenue Bonds,
Guthrie Healthcare System, 7.100%, 3/01/17 3/01 at 102 Aaa 5,405,150
- ------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 2.3%
12,500,000 Rhode Island Depositors Economic Protection Corporation, Special Obligation Bonds, 1991 Series A,
7.500%, 8/01/14 (Pre-refunded to 8/01/01) 8/01 at 102 Aaa 13,936,875
5,050,000 Rhode Island Port Authority and Economic Development Corporation, Airport Revenue Bonds,
1994 Series A, 6.625%, 7/01/24 (Alternative Minimum Tax) 7/04 at 102 Aaa 5,507,177
- ------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.6%
5,170,000 The Health, Educational and Housing Facilities Board of the County of Sullivan, Tennessee, Hospital
Revenue Bonds, Series 1993 (Holston Valley Health Care, Inc.),
5.750%, 2/15/13 2/03 at 102 Aaa 5,402,650
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 4.9%
8,000,000 Abilene Health Facilities Development Corporation, Hospital Revenue Refunding and
Improvement Bonds (Hendrick Medical Center Project), Series 1995C,
6.150%, 9/01/25 9/05 at 102 Aaa 8,617,120
7,800,000 Bexar County Health Facilities Development Corporation Health System Revenue Refunding Bonds
(Baptist Health System), Series A-1, 5.250%, 11/15/27 11/07 at 102 Aaa 7,639,320
4,000,000 Brazos County Health Facilities Development Corporation, Franciscan Services Corporation,
Obligated Group, Revenue Bonds, Series 1997 A, 5.375%, 1/01/22 7/07 at 102 Aaa 3,981,120
Harris County Hospital District, Refunding Revenue Bonds, Series 1990:
3,000,000 7.500%, 2/15/03 No Opt. Call Aaa 3,297,270
5,000,000 7.400%, 2/15/10 No Opt. Call Aaa 5,983,050
4,100,000 City of Houston, Texas, Airport System Senior Lien Revenue Bonds, Series 1988, 8.200%, 7/01/17
(Alternative Minimum Tax) (Pre-refunded to 7/01/98) 7/98 at 102 1/2 Aaa 4,230,338
7,450,000 Matagorda County Navigation, District Number One (Texas), Pollution Control Revenue Refunding
Bonds (Central Power and Light Company Project), Series 1995,
6.100%, 7/01/28 7/00 at 102 Aaa 7,829,280
- ------------------------------------------------------------------------------------------------------------------------------------
Utah - 2.0%
10,770,000 Intermountain Power Agency (Utah), Power Supply Revenue Refunding Bonds, 1993 Series A,
5.000%, 7/01/23 7/03 at 100 A1 10,109,690
6,000,000 Salt Lake City, Utah, Hospital Revenue Refunding Bonds (IHC Hospitals, Inc.), Series 1988 A,
8.000%, 5/15/07 5/98 at 102 AAA 7,053,000
- ------------------------------------------------------------------------------------------------------------------------------------
Vermont - 0.2%
2,000,000 Vermont Housing Finance Agency, Single Family Housing Bonds, Series 9, 6.000%, 5/01/37
(Alternative Minimum Tax) 6/07 at 101 1/2 Aaa 2,078,700
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Washington - 0.5%
$ 3,380,000 Affiliated Health Services, Public Hospital District No. 1 Skagit County, Washington Hospital
District No. 1 Revenue and Refunding Bonds, 1997, 5.250%, 12/01/17 12/07 at 101 Aaa $ 3,321,018
1,350,000 Skagit County Public Hospital District No. 304 Revenue Refunding Bonds, Affiliated Health Services,
5.250%, 12/01/17 12/07 at 101 Aaa 1,326,442
- ------------------------------------------------------------------------------------------------------------------------------------
$ 788,977,000 Total Investments - (cost $777,216,708) - 98.4% 833,622,285
=============
Temporary Investments in Short-Term Municipal Securities - 0.1%
$ 1,000,000 Orange County Irvine Coast Assessment District No. 88-1, Variable Rate Demand Bonds,
============= 4.100%, 9/02/18+ VMIG-1 1,000,000
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 12,640,901
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 847,263,186
====================================================================================================================
All of the bonds in the portfolio, excluding temporary investments in
short-term municipal securities, are either covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or
trust containing sufficient U.S. government or U.S. government agency
securities, any of which ensure the timely payment of principal and interest.
* Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions at
varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
+ The security has a maturity of more than one year, but has variable
rate and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC. (NIO)
April 30, 1998
(Unaudited)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alabama - 2.2%
$ 3,850,000 Alabama Housing Finance Authority, Multifamily Housing Revenue Refunding Bonds (GNMA Collateralized -
Royal Hills), 1995 Series F, 6.500%, 7/20/30 7/05 at 103 Aaa $ 4,160,079
11,000,000 The Special Care Facilities Financing Authority of the City of
Birmingham (Alabama), Baptist Medical Centers, Baptist Medical
Centers, Revenue Bonds, Series 1995-B (Baptist Health System,
Inc.), 5.875%, 11/15/20 5/05 at 102 Aaa 11,196,350
The Special Care Facilities Authority Of The City of Birmingham
- Baptist Medical Centers, Revenue Bonds, Series 1996-A (Baptist
Health System, Inc.):
7,465,000 5.875%, 11/15/19 11/06 at 102 Aaa 7,561,299
10,000,000 5.875%, 11/15/26 11/06 at 102 Aaa 10,066,100
3,745,000 City of Demopolis, Alabama, General Obligation Warrants, Series 1991, 6.900%, 6/01/16
(Pre-refunded to 6/01/01) 6/01 at 102 Aaa 4,100,513
4,250,000 County Board of Education of Shelby County, Alabama, Capital Outlay Refunding School Warrants,
Series 1995, 5.875%, 2/01/17 2/05 at 102 Aaa 4,464,540
- ------------------------------------------------------------------------------------------------------------------------------------
Alaska - 1.1%
4,000,000 Alaska Energy Authority, Power Revenue Bonds, Second Series (Bradley Lake Hydroelectric Project),
7.250%, 7/01/21 7/00 at 102 Aaa 4,298,960
15,950,000 Alaska State Housing Finance Corporation, Governmental Purpose Bonds,
1995 Series A, 5.875%, 12/01/30 12/05 at 102 Aaa 16,558,652
- ------------------------------------------------------------------------------------------------------------------------------------
Arizona - 1.0%
5,000,000 Coconing County, Arizona, Pollution Control Corporation, Pollution Control Revenue Refunding Bonds
(Arizona Public Service Company), 1993 Series A, 5.875%, 8/15/28 8/03 at 102 A- 5,113,900
11,625,000 The Industrial Development Authority of the County of Pima (Arizona), Industrial Development Lease
Obligation Refunding Revenue Bonds, 1988 Series A (Irvington Project),
7.250%, 7/15/10 1/02 at 103 Aaa 12,896,543
- ------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 0.7%
12,160,000 Arkansas Development Finance Authority, Single Family Mortgage Revenue Bonds, 1990 Series A
(GNMA-Backed Securities Program), 7.400%, 9/01/23 (Alternative Minimum Tax) 9/01 at 102 AAA 12,980,314
- ------------------------------------------------------------------------------------------------------------------------------------
California - 9.4%
California Health Facilities Finance Authority, Insured Health
Facility Revenue Bonds, 1991 Series D (Catholic Healthcare
West):
9,000,000 6.500%, 7/01/16 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 9,766,800
14,000,000 6.650%, 7/01/21 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 15,254,540
425,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1991 Series C, 7.450%, 8/01/11
(Alternative Minimum Tax) 8/01 at 102 Aa2 431,749
6,135,000 California Housing Finance Agency, Housing Revenue Bonds (Insured),
1994 Series C, 6.250%, 8/01/05 8/04 at 102 Aaa 6,473,775
5,000,000 California Housing Finance Agency, Multifamily Housing Revenue Bonds III, 1998 Series B,
5.500%, 8/01/39 (Alternative Minimum Tax) (WI) 8/08 at 101 1/2 Aaa 4,959,200
California Rural Home Mortgage, Finance Authority, Single Family
Mortgage Revenue Bonds (Mortgage Revenue Bonds (Mortgage-Backed
Securities Program), 1996 Series A:
3,865,000 7.550%, 11/01/26 (Alternative Minimum Tax) No Opt.Call AAA 4,438,566
3,210,000 7.750%, 5/01/27 (Alternative Minimum Tax) No Opt.Call AAA 3,687,006
7,000,000 California Statewide Communities Development Authority, Certificates of Participation, Huntington
Memorial Hospital, 5.800%, 7/01/26 7/06 at 102 AAA 7,305,410
3,100,000 Campbell Union School District, Santa Clara County, California, 1994 General Obligation Bonds,
Series A, 6.250%, 8/01/19 (Pre-refunded to 8/01/04) 8/04 at 102 Aaa 3,462,018
8,200,000 Castaic Lake Water Agency (California), Refunding Revenue Certificates of Participation (Water System
Improvement Projects), Series 1994A, 6.300%, 8/01/20 8/04 at 102 Aaa 8,946,200
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
California (continued)
$ 11,750,000 East Bay Municipal Utility District (Alameda and Contra Costa Counties, California), Water System
Subordinated Revenue Refunding Bonds, Series 1993A, 5.000%, 6/01/21 6/03 at 102 Aaa $ 11,252,975
5,500,000 Fallbrook Union High School District (San Diego County, California), 1994 General Obligation Bonds,
Series A, 6.250%, 9/01/19 9/04 at 102 Aaa 6,021,785
6,530,000 La Quinta Financing Authority, Local Agency Revenue Bonds, Series 1991 (City Hall Project),
6.650%, 10/01/18 (Pre-refunded to 10/01/00) 10/00 at 102 Aaa 7,042,083
9,000,000 County of Orange, California, Refunding Recovery Bonds, 1995 Series A,
5.750%, 6/01/15 6/05 at 102 Aaa 9,360,990
12,500,000 County of Orange, California, 1996 Recovery Certificates of Participation,
Series A, 6.000%, 7/01/26 7/06 at 102 Aaa 13,352,375
6,500,000 City of Salinas, Housing Facility Refunding Revenue Bonds, Series 1994A (GNMA Collateralized -
Villa Serra Project), 6.600%, 7/20/30 7/04 at 102 AAA 6,978,790
8,500,000 Airports Commission, City and County of San Francisco, California, San Francisco International Airport,
Second Series Revenue Bonds, Issue 11 (Noise Insulation Program), 6.250%, 5/01/26
(Alternative Minimum Tax) 5/05 at 101 Aaa 9,066,780
18,000,000 Airports Commission, City and County of San Francisco, California, San Francisco International Airport,
Second Series Revenue Bond, Issue 13B, 5.500%, 5/01/26
(Alternative Minimum Tax) 5/06 at 101 Aaa 18,139,680
9,560,000 San Joaquin Hills Transportation Corridor Agency, Toll Road Refunding Revenue Bonds, Series 1997A,
5.250%, 1/15/30 1/07 at 102 Aaa 9,399,679
11,000,000 Santa Ana Financing Authority, Police Administration and Housing Facility Lease Revenue Bonds,
Series 1994A, 6.250%, 7/01/24 No Opt. Call Aaa 12,671,780
5,500,000 Santa Clara County Financing Authority, Lease Revenue Bonds (VMC Facility Replacement Project),
1994 Series A, 6.750%, 11/15/20 (Pre-refunded to 11/15/04) 11/04 at 102 Aaa 6,318,895
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado - 0.8%
14,150,000 Board of Water Commissioners, City and County of Denver, Colorado, Certificates of Participation,
Series 1991, 6.625%, 11/15/11 11/01 at 101 Aaa 15,206,298
- ------------------------------------------------------------------------------------------------------------------------------------
Connecticut - 0.2%
2,500,000 State of Connecticut, Health and Educational Facilities Authority, Revenue Bonds, Choate Rosemary
Hall Issue, Series A, 7.000%, 7/01/25 (Pre-refunded to 7/01/04) 7/04 at 101 Aaa 2,860,225
- ------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 2.3%
19,355,000 District of Columbia (Washington, D.C.), General Obligation Bonds (Series of 1989A), 7.500%, 6/01/09
(Pre-refunded to 6/01/99) 6/99 at 102 Aaa 20,468,880
6,000,000 District of Columbia, Hospital Improvement and Refunding Revenue Bonds (Children's Hospital Issue),
Series 1992A, 6.250%, 7/15/19 7/02 at 102 Aaa 6,430,500
4,885,000 District of Columbia Housing Finance Agency, Collateralized Single Family Mortgage Revenue Bonds,
Series 1988C, 7.850%, 12/01/22 (Alternative Minimum Tax) 6/00 at 102 AAA 5,103,311
4,820,000 District of Columbia Housing Finance Agency, Collateralized Single Family Mortgage Revenue Bonds,
Series 1990B, 7.100%, 12/01/24 (Alternative Minimum Tax) 12/01 at 102 AAA 5,080,810
5,000,000 District of Columbia, Revenue Bonds (The American College of Obstetricians and Gynecologists Issue),
Series 1991, 6.500%, 8/15/18 8/01 at 102 Aaa 5,383,950
- ------------------------------------------------------------------------------------------------------------------------------------
Florida - 1.7%
3,500,000 Florida Housing Finance Agency, Housing Revenue Bonds, 1997 Series I-1 (Wentworth Apartments
Projects), 5.450%, 10/01/37 (Alternative Minimum Tax) 10/07 at 102 Aaa 3,508,680
10,775,000 Florida Housing Finance Agency, Home Ownership Revenue Refunding Bonds, 1987 Series G1
8.595%, 11/01/17 No Opt. Call AAA 12,506,327
5,600,000 Florida Housing Finance Agency, Single Family Mortgage Refunding Bonds, 1987 Series One Class B,
7.100%, 1/01/17 5/98 at 103 AAA 5,722,864
3,500,000 Florida Housing Finance Agency, Housing Revenue Bonds, 1997 Series L (Sarah's Place Apartments Project),
5.450%, 11/01/37 (Alternative Minimum Tax) 5/08 at 102 Aaa 3,509,170
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Florida (continued)
$ 2,719,000 Housing Finance Authority of Dade County (Florida), Single Family Mortgage Revenue Refunding Bonds,
1991 Series D, 6.950%, 12/15/12 12/01 at 102 Aaa $ 2,885,892
2,745,000 Escambia County Housing Finance Authority (Florida), Single Family Mortgage Revenue Bonds (Multi-County
Program), Series 1995, 6.950%, 10/01/27 (Alternative Minimum Tax) 4/05 at 102 Aaa 2,953,098
- ------------------------------------------------------------------------------------------------------------------------------------
Georgia - 1.1%
8,315,000 The Fulton-De Kalb Hospital Authority, Georgia, Revenue Certificates, Series 1991 (Grady Memorial
Hospital), 6.900%, 1/01/15 (Pre-refunded to 1/01/01) 1/01 at 102 Aaa 9,016,370
5,000,000 The Hospital Authority Of Hall County and The City of Gainesville, Revenue Anticipation Certificates
(Northeast Georgia Healthcare Project), Series 1995, 6.000%, 10/01/20 10/05 at 102 Aaa 5,287,050
5,000,000 The Glynn-Brunswick Memorial Hospital Authority Revenue Anticipation Certificates (Southeast Georgia
Health Systems Project), Series 1996, 5.250%, 8/01/13 8/06 at 102 Aaa 5,046,950
- ------------------------------------------------------------------------------------------------------------------------------------
Hawaii - 1.4%
24,250,000 Department of Budget and Finance of the State of Hawaii, Special Purpose Revenue Bonds (Hawaii Electric
Company, Inc. and Subsidiaries Projects), Series 1996A, 6.200%, 5/01/26
(Alternative Minimum Tax) 5/06 at 101 Aaa 25,850,258
- ------------------------------------------------------------------------------------------------------------------------------------
Idaho - 0.6%
2,870,000 Idaho Housing Agency, Single Family Mortgage Bonds, 1994 Series B,
6.750%, 7/01/22 No Opt.Call Aa 3,142,478
2,755,000 Idaho Housing Agency Single Family Alternative Minimum Tax, 6.900%, 7/01/26
(Alternative Minimum Tax) No Opt. Call Aa 3,061,494
4,365,000 Idaho Housing Agency, Single Family Mortgage Bonds, 1995 Series B, 6.600%, 7/01/27
(Alternative Minimum Tax) 1/05 at 102 Aaa 4,624,237
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 10.0%
20,000,000 Illinois Health Facilities Authority, Brokaw-Mennonite Association, Revenue Refunding Bonds, Series 1992
(BroMenn Healthcare), 6.250%, 8/15/18 8/02 at 102 Aaa 21,453,400
3,500,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1990 (Alexian Brothers Medical Center, Inc.
Project), 7.125%, 1/01/21 1/01 at 102 Aaa 3,769,395
2,500,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1991 (Memorial Medical Center System Project),
Springfield, Illinois, 7.100%, 10/01/21 (Pre-refunded to 10/01/01) 10/01 at 102 Aaa 2,763,925
2,335,000 Illinois Housing Development Authority, Residential Mortgage Revenue Bonds, 1989 Series A,
7.400%, 2/01/20 (Alternative Minimum Tax) 8/99 at 102 Aa2 2,406,661
Participations, The State of Illinois, Department of Central Management Services, Illinois Student
Assistance Commission:
2,965,000 6.875%, 7/01/07 7/02 at 102 Aaa 3,280,209
6,085,000 6.950%, 7/01/13 7/02 at 102 Aaa 6,680,661
5,000,000 State of Illinois, Civic Center Bonds (Dedicated Tax Revenue),
Series 1990-A, 7.000%, 12/15/10 12/00 at 102 Aaa 5,408,200
6,515,000 City of Berwyn, Illinois, Revenue Bonds, Series 1991 (MacNeal Memorial Hospital Association Project),
7.000%, 6/01/15 (Pre-refunded to 6/01/01) 6/01 at 102 Aaa 7,134,642
4,055,000 Central Lake County Joint Action Water Agency, Lake County, Illinois, General Obligation Water
Refunding Bonds, Series 1992, 6.000%, 2/01/19 2/03 at 102 Aa 4,265,617
10,000,000 City of Chicago (Illinois), General Obligation Adjustable Rate Bonds, Central Public Library Project,
Series C of 1988, 6.850%, 1/01/17 (Pre-refunded to 7/01/02) 7/02 at 101 1/2 Aaa 11,075,400
25,000,000 Chicago School Reform Board of Trustees of the Board of Education of the City of Chicago, Illinois,
Unlimited Tax General Obligation Bonds (Dedicated Tax Revenues), Series 1997A,
5.250%, 12/01/27 12/07 at 102 Aaa 24,484,000
5,750,000 City of Chicago, Illinois, Motor Fuel Tax Revenue Bonds, Series 1990, 6.500%, 1/01/16
(Pre-refunded to 1/01/01) 1/01 at 100 Aaa 6,082,465
8,000,000 City of Chicago, Water Revenue Bonds, Series 1995, 5.000%, 11/01/25 11/06 at 102 Aaa 7,588,080
The County of Cook, Illinois, General Obligation Bonds, Series 1991:
18,430,000 6.750%, 11/01/18 (Pre-refunded to 11/01/01) 11/01 at 102 Aaa 20,242,591
26,475,000 6.250%, 11/01/21 (Pre-refunded to 11/01/01) 11/01 at 102 Aaa 28,652,039
6,370,000 City of Decatur, Macon County, Illinois (Decatur Memorial Hospital), Hospital Facility Revenue Bonds,
Series 1991B, 7.750%, 10/01/21 (Pre-refunded to 10/01/01) 10/01 at 102 Aaa 7,172,811
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Illinois (continued)
Board of Governors of State Colleges and Universities, Eastern
Illinois University, Auxiliary Facilities System Revenue Bonds,
Series 1989:
$ 12,355,000 0.000%, 10/01/09 10/04 at 74 1/16 Aaa $ 6,578,667
16,470,000 0.000%, 4/01/16 10/04 at 47 1/16 Aaa 5,465,405
4,560,000 County of Macon, Illinois, Revenue Bonds, Milliken University,
Series 1995, 6.250%, 10/01/16 10/05 at 100 Aaa 4,977,331
5,000,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake,
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1994D, 6.750%, 6/01/25 (Pre-refunded to 6/01/04) 6/04 at 102 Aaa 5,687,800
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 5.3%
2,600,000 Indiana Health Facility Financing Authority Hospital Revenue Bonds, Series 1991 (Community Hospitals
of Indiana), 7.000%, 7/01/21 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 2,851,576
10,000,000 Indiana Health Facility Financing Authority, Hospital Revenue Refunding and Improvement Bonds,
Series 1995 (Community Hospitals Projects), 5.700%, 5/15/22 5/06 at 102 Aaa 10,292,400
7,750,000 Indiana Health Facility Financing Authority, Hospital Revenue Bonds, Series 1997A (Sisters of St. Francis
Health Services, Inc. Project), 5.375%, 11/01/27 11/07 at 102 Aaa 7,665,138
780,000 Indiana Housing Finance Authority, Single Family Mortgage Revenue Bonds (GNMA Collateralized Home
Mortgage Program), 1990 Series D, 7.800%, 1/01/22
(Alternative Minimum Tax) 7/00 at 102 Aaa 816,426
2,105,000 Indiana Housing Finance Authority, Single Family Mortgage Revenue Bonds (GNMA Collateralized Home
Mortgage Program), 1990 Series B, 7.800%, 1/01/22 (Alternative Minimum Tax) 7/00 at 102 Aaa 2,209,429
10,500,000 Hospital Authority of the City of Fort Wayne, Indiana, Revenue Bonds, Series 1992 (Parkview Memorial
Hospital, Inc. Project), 6.400%, 11/15/22 11/02 at 102 A1 11,218,410
12,250,000 City of Lawrenceburg, Indiana, Pollution Control Revenue Refunding Bonds (Indiana Michigan Power
Company Project), Series D, 7.000%, 4/01/15 4/02 at 102 Aaa 13,414,485
12,950,000 Marion County Convention and Recreational Facilities Authority (Indiana), Excise Taxes Lease Rental
Revenue Bonds, Series 1991B, 7.000%, 6/01/21 (Pre-refunded to 6/01/01) 6/01 at 102 Aaa 14,197,474
9,500,000 Marion County Convention and Recreational Facilities Authority, Excise Taxes Lease Rental Revenue
Subordinate Bonds, Series 1997A, 5.000%, 6/01/27 6/08 at 101 Aaa 8,985,100
9,545,000 New Prairie School Building Corporation (LaPonte and St. Joseph Counties, Indiana), First Mortgage
Bonds, Series 1994, 7.200%, 7/15/21 (Pre-refunded to 7/15/04) 7/04 at 102 Aaa 11,096,826
14,000,000 Holy Cross Health System Corporation, Indiana Hospital Revenue Bonds Issues, Hospital Authority of
Marshall County, Hospital Revenue Refunding Bonds, Series 1991 (Holy Cross Parkview Hospital, Inc.),
7.000%, 12/01/12 12/01 at 102 Aaa 15,273,020
- ------------------------------------------------------------------------------------------------------------------------------------
Iowa - 1.4%
5,000,000 City of Davenport, Iowa, Hospital Facility Revenue Bonds (Mercy Hospital Project), Series 1992,
6.250%, 7/01/22 (Pre-refunded to 7/01/02) 7/02 at 102 Aaa 5,436,900
11,400,000 City of Davenport, Iowa, Insured Hospital Revenue Bonds (St. Luke's Hospital), 1990 Series A,
7.400%, 7/01/20 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 12,372,420
7,000,000 Polk County, Iowa, Health Facilities Revenue Bonds, Catholic
Health Corporation (Mercy Health Center of Central Iowa
Project), Series 1991, 6.750%, 11/01/15 (Pre-refunded to 11/01/01) 11/01 at 101 Aaa 7,627,970
- ------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.1%
2,135,000 Sedgwick County, Kansas, and Shawnee County, Kansas, GNMA Collateralized Mortgage Revenue Bonds,
Senior 1991 Series A, 7.300%, 12/01/12 6/01 at 103 Aaa 2,265,342
- ------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 1.2%
10,000,000 City of Danville, Kentucky, Multi-City Lease Revenue Bonds (Louisville and Jefferson County Metropolitan
Sewer District Sewer and Drainage System Revenue Project), Fixed Rate Series 1991-G,
6.800%, 3/01/19 (Pre-refunded to 3/01/02) 3/02 at 102 Aaa 11,047,600
53,000,000 Jefferson County, Kentucky, Capital Projects Corporation, Lease Revenue Bonds, Series 1989B,
0.000%, 8/15/19 (Pre-refunded to 2/15/01) 2/01 at 24 11/16 Aaa 11,595,870
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Louisiana - 2.2%
$ 15,650,000 Louisiana Public Facilities Authority, Hospital Revenue Refunding Bonds (Southern Baptist Hospital
Project), Series 1992, 6.800%, 5/15/12 (Pre-refunded to 5/15/02) 5/02 at 102 Aaa $ 17,338,792
5,340,000 Public Improvement Bonds, Issue of 1992, City of New Orleans, Louisiana, 7.000%, 9/01/19
(Pre-refunded to 9/01/02) 9/02 at 100 Aaa 5,893,758
9,270,000 Orleans Levee District (A Political Subdivision of the State of Louisiana), Public Improvement Bonds,
Series 1986, 5.950%, 11/01/15 12/05 at 103 Aaa 9,861,148
3,000,000 Parish of St Charles, State of Louisiana, Pollution Control Revenue Bonds (Louisiana Power and Light
Company Project), Series 1991, 7.500%, 6/01/21 (Alternative Minimum Tax) 6/01 at 102 Aaa 3,283,260
3,500,000 Hospital Service District No. 1 of the Parish of Tangipahoa, State of Louisiana, Hospital Revenue Bonds
(Series 1994), 6.250%, 2/01/24 2/04 at 102 Aaa 3,790,710
- ------------------------------------------------------------------------------------------------------------------------------------
Maine - 0.6%
10,500,000 Maine Health and Higher Educational Facilities Authority, Revenue Bonds,
Series 1991, 6.375%, 7/01/21 7/01 at 102 Aaa 11,215,155
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 3.8%
6,000,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Brigham and Women's Hospital
Issue, Series D, 6.750%, 7/01/24 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 6,549,660
5,050,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Fallon Healthcare System
Issue, Series A, 6.750%, 6/01/20 (Pre-refunded to 6/01/01) 6/01 at 102 Aaa 5,498,794
10,500,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, New England Medical
Center Hospitals Issue, Series F, 6.625%, 7/01/25 7/02 at 102 Aaa 11,416,860
5,850,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, South Shore Hospital
Issue, Series D, 6.500%, 7/01/22 7/02 at 102 Aaa 6,333,444
8,400,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Berkshire Health Systems
Issue, Series D, 6.000%, 10/01/13 10/05 at 102 Aaa 8,978,928
7,000,000 Massachusetts Health and Educational Facilities Authority Revenue Bonds, Baystate Medical Center Issue,
Series E, 6.000%, 7/01/26 7/06 at 102 Aaa 7,414,680
4,775,000 Massachusetts Housing Finance Agency, Single Family Housing Revenue Bonds, Series 11,
7.750%, 12/01/20 (Alternative Minimum Tax) 6/99 at 102 Aa3 4,989,159
13,775,000 Massachusetts Housing Finance Agency, Single Family Housing Revenue Bonds, Series 17,
7.150%, 12/01/24 (Alternative Minimum Tax) 6/01 at 102 Aa 14,491,576
4,865,000 Massachusetts Housing Finance Agency, Housing Revenue Refunding Bonds, 1995 Series A,
6.100%, 12/01/16 12/05 at 102 Aaa 5,091,028
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan - 5.1%
5,440,000 Michigan State Housing Development Authority, Rental Housing Revenue Bonds, 1991 Series A,
7.150%, 4/01/10 (Alternative Minimum Tax) 1/02 at 102 AA- 5,858,989
10,000,000 Michigan Strategic Fund Limited Obligation Refunding Revenue Bonds (The Detroit Edison Company
Pollution Control Bonds Project), Collateralized Series 1991DD,
6.875%, 12/01/21 12/01 at 102 Aaa 10,868,500
5,930,000 Cheboygan Area Schools, Counties of Cheboygan and Presque Isle, State of Michigan, 1996 School
Building and State Bonds (General Obligation - Unlimited Tax),
5.700%, 5/01/16 5/07 at 100 Aaa 6,171,292
11,245,000 The Economic Development Corporation of the City of Detroit, Resource Recovery Revenue Bonds,
Series 1991A, 6.875%, 5/01/09 (Alternative Minimum Tax) 5/01 at 102 Aaa 12,091,861
20,300,000 City of Detroit, Michigan, Sewage Disposal System Revenue Bonds, Series 1991, 6.625%, 7/01/21
(Pre-refunded to 7/01/01) 7/01 at 102 Aaa 22,078,889
13,500,000 City of Detroit, Michigan, Water Supply System Revenue and Revenue Refunding Bonds, Series 1993,
5.000%, 7/01/23 7/04 at 102 Aaa 12,849,705
8,000,000 Gaylord Community Schools, Counties of Otsego and Antrim, State of Michigan, 1992 School Building
and Site and Refunding Bonds, 0.000%, 5/01/21 (Pre-refunded to 5/01/07) 5/07 at 37 3/4 Aaa 1,963,280
8,500,000 County of Jackson Hospital Finance Authority, Hospital Revenue Refunding Bonds (W. A. Foote Memorial
Hospital, Jackson Michigan), Series 1993A, 5.250%, 6/01/23 6/03 at 102 Aaa 8,302,630
27,000,000 Okemos Public School, County of Ingham, State of Michigan, 1991 School Building and Site Bonds,
Series I, 0.000%, 5/01/21 (Pre-refunded to 5/01/06) 5/06 at 34 17/32 Aaa 6,418,170
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Michigan (continued)
$ 7,590,000 Western Townships Utilities Authority, Sewage Disposal System Refunding Bonds, Series 1991,
6.500%, 1/01/19 1/02 at 100 Aaa $ 8,065,969
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 0.7%
5,000,000 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 1992 Series E, 6.850%, 1/01/24
(Alternative Minimum Tax) 7/02 at 102 AA+ 5,295,050
6,910,000 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 1994 Series M, 6.700%, 7/01/26
(Alternative Minimum Tax) 1/04 at 102 AA+ 7,333,790
- ------------------------------------------------------------------------------------------------------------------------------------
Missouri - 0.5%
5,590,000 Missouri Housing Development Commission, Single Family Mortgage Revenue Bonds (GNMA
Mortgage-Backed Securities Program), 1991 Series C, 6.900%, 7/01/18 1/02 at 102 AAA 5,935,965
3,195,000 Missouri Housing Development Commission, Single Family Mortgage Revenue Bonds (GNMA
Mortgage-Backed Securities Program), 1989A, 7.900%, 2/01/21
(Alternative Minimum Tax) 2/99 at 102 AAA 3,302,608
- ------------------------------------------------------------------------------------------------------------------------------------
Montana - 1.5%
26,000,000 City of Forsyth, Rosebud County, Montana, Pollution Control Revenue Refunding Bonds (Puget
Sound Power and Light Company Colstrip Project), Series 1992,
6.800%, 3/01/22 3/02 at 102 Aaa 28,252,640
- ------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 0.3%
2,305,000 Nebraska Investment Finance Authority, Single Family Mortgage Revenue Bonds, 1988 Series 1,
8.125%, 8/15/38 (Alternative Minimum Tax) 8/98 at 102 Aaa 2,365,068
4,000,000 Hospital Authority No. 11 of Lancaster County, Nebraska, Hospital Revenue Bonds, Series 1997B,
(Bryan Memorial Hospital Project), 5.375%, 6/01/22 6/08 at 101 AAA 3,986,400
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada - 2.9%
5,725,000 Nevada Housing Division, Single Family Program Bonds, 1994 Issue B-1,
Senior Bonds, 6.700%, 10/01/17 4/04 at 102 Aa2 6,066,725
4,415,000 Nevada Housing Division Alternative Minimum Tax, 6.950%, 10/01/26
(Alternative Minimum Tax) 4/04 at 102 Aa2 4,712,968
29,775,000 Clark County, Nevada, Industrial Development Revenue Bonds (Nevada Power Company Project),
Series 1990, 7.800%, 6/01/20 (Alternative Minimum Tax) 6/00 at 102 Aaa 32,158,489
11,000,000 Clark County, Nevada, Las Vegas-McCarran International Airport Passenger Facility Charge Revenue
Bonds, 1992 Series A, 6.000%, 7/01/22 (Pre-refunded to 7/01/02) 7/02 at 102 Aaa 11,874,940
- ------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 0.3%
4,950,000 New Hampshire Higher Educational and Health Facilities Authority, Hospital Revenue Bonds, Lake Region
Hospital Association Issue, Series 1993, 5.750%, 1/01/11 1/03 at 102 Aaa 5,169,384
- ------------------------------------------------------------------------------------------------------------------------------------
New York - 4.6%
Dormitory Authority of the State of New York, City University
System Consolidated, Third General Resolution Revenue Bonds,
1994 Series 2:
3,000,000 6.250%, 7/01/19 7/04 at 100 Aaa 3,242,970
6,400,000 6.750%, 7/01/24 (Pre-refunded to 7/01/04) 7/04 at 102 Aaa 7,300,416
7,000,000 New York State Energy Research and Development Authority, Electric Facilities Revenue Bonds,
Series 1990 A (Consolidated Edison of New York, Inc. Project),
7.500%, 7/01/25 (Alternative Minimum Tax) 7/99 at 101 Aaa 7,311,430
18,220,000 New York State Energy Research and Development Authority, Electric Facilities Revenue Bonds,
Series 1989 C (Consolidated Edison Company of New York, Inc. Project), 7.250%, 11/01/24
(Alternative Minimum Tax) 11/98 at 101 Aaa 18,668,394
3,000,000 State of New York Mortgage Agency, Homeowner Mortgage Revenue Bonds, Series KK,
7.800%, 10/01/20 (Alternative Minimum Tax) 10/99 at 102 Aa2 3,135,330
8,265,000 The City of New York, General Obligation Bonds, Fiscal 1992 Series C, Fixed Rate Bonds, Subseries C-1,
6.250%, 8/01/10 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 8,989,097
10,000,000 The City of New York, General Obligation Bonds, Fiscal 1998 Series H,
5.125%, 8/01/25 8/08 at 101 Aaa 9,609,100
10,000,000 New York City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, Fiscal 1996
Series B, 5.750%, 6/15/26 6/06 at 101 Aaa 10,380,200
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York (continued)
$ 15,600,000 Port of Authority of New York and New Jersey, Consolidated Revenue Bonds, Ninety-Seventh Series,
6.650%, 1/15/23 (Alternative Minimum Tax) 1/05 at 101 Aaa $ 16,957,824
- ------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 2.7%
45,000,000 City of Charlotte, North Carolina, Certificates of
Participation, Series 1991 (Convention Facility Project),
6.750%, 12/01/21 (Pre-refunded to 12/01/01) 12/01 at 102 Aaa 49,532,850
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio - 3.3%
Ohio Air Quality Development Authority, Air Quality Development
Revenue Refunding Bonds (JMG Funding Limited Partnership
Project), Series 1994:
13,750,000 6.375%, 1/01/29 (Alternative Minimum Tax) 10/04 at 102 Aaa 14,835,013
8,000,000 6.375%, 4/01/29 (Alternative Minimum Tax) 10/04 at 102 Aaa 8,631,280
9,105,000 Ohio Housing Finance Agency, Residential Mortgage Revenue Bonds (GMNA Mortgage-Backed Securities
Program), 1995 Series A-2, 6.625%, 3/01/26 (Alternative Minimum Tax) 3/05 at 102 AAA 9,728,055
12,550,000 City of Cleveland, Ohio, Waterworks Improvement First Mortgage Revenue Bonds, Series F, 1992 A,
6.500%, 1/01/21 (Pre-refunded to 1/01/02) 1/02 at 102 Aaa 13,698,576
5,000,000 Columbus Municipal Airport (Port Columbus International Airport Project), Airport Improvement Revenue
Bonds, Series 1998 B, 5.000%, 1/01/28 (DD) 1/08 at 101 Aaa 4,776,550
9,000,000 County of Lucas, Ohio, Hospital Improvement Revenue Bonds, Series 1992 (St. Vincent Medical Center),
6.625%, 8/15/22 (Pre-refunded to 8/15/02) 8/02 at 102 Aaa 9,875,700
- ------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 2.9%
770,000 Oklahoma Housing Finance Agency, Single Family Mortgage Revenue Bonds, 1991 Series A,
7.150%, 3/01/07 3/01 at 102 Aaa 811,703
41,845,000 Oklahoma Housing Finance Agency, GNMA Collateralized Single Family Mortgage Revenue Bonds,
Series 1987A, 7.997%, 8/01/18 (Alternative Minimum Tax) No Opt. Call AAA 48,108,360
3,360,000 Norman Regional Hospital Authority (Norman, Oklahoma), Hospital Revenue Bonds, Series 1991,
6.900%, 9/01/21 (Pre-refunded to 9/01/01) 9/01 at 102 Aaa 3,688,306
1,380,000 Tulsa County Home Finance Authority, GNMA Collateralized Mortgage Revenue Bonds, Series 1991C,
7.100%, 6/01/22 (Alternative Minimum Tax) 12/01 at 102 AAA 1,453,761
- ------------------------------------------------------------------------------------------------------------------------------------
Oregon - 0.3%
5,500,000 State of Oregon, Housing and Community Services Department, Mortgage Revenue Bonds (Single-Family
Mortgage Program), 1995 Series A, 6.450%, 7/01/26
(Alternative Minimum Tax) 7/05 at 102 Aa2 5,863,660
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 5.5%
7,000,000 Certificates of Participation, Commonwealth of Pennsylvania, Harristown Development Corporation,
6.250%, 5/01/06 11/01 at 102 Aaa 7,493,850
14,700,000 County of Allegheny, Pennsylvania Airport Revenue Bonds, Series 1992A and 1992B (Greater Pittsburgh
International Airport), 6.625%, 1/01/22 (Alternative Minimum Tax) 1/02 at 102 Aaa 15,833,370
7,000,000 Pollution Control Revenue Refunding Bonds, Beaver County Industrial Development Authority,
1991 Series A (Pennsylvania Power Company Mansfield Project),
7.150%, 9/01/21 9/01 at 102 Aaa 7,636,300
24,800,000 Butler County Hospital Authority (Butler County, Pennsylvania), Hospital Revenue Bonds, Series 1991 A
(North Hills Passavent Hospital), 7.000%, 6/01/22
(Pre-refunded to 6/01/01) 6/01 at 102 Aaa 27,158,728
Delaware County Industrial Development Authority, Pollution
Control Revenue Refunding Bonds, 1991 Series A (Philadelphia
Electric Company Project):
5,000,000 7.375%, 4/01/21 4/01 at 102 Baa1 5,426,200
5,000,000 7.375%, 4/01/21 4/01 at 102 Aaa 5,443,650
10,000,000 The Harrisburg Authority (Dauphin County, Pennsylvania), Commonwealth of Pennsylvania Lease Bonds,
Series of 1991, 6.625%, 6/01/13 (Pre-refunded to 6/01/01) 6/01 at 101 Aaa 10,774,100
7,120,000 Lehigh County, Pennsylvania, General Purpose Authority, Hospital Revenue Bonds (Lehigh Valley Hospital,
Inc.), Series A of 1994, 6.250%, 7/01/22 (Pre-refunded to 7/01/04) 7/04 at 102 Aaa 7,918,935
8,950,000 Montgomery County Industrial Development Authority, Pollution Control Revenue Refunding Bonds,
1992 Series A (Philadelphia Electric Company Project), 6.625%, 6/01/22 6/02 at 102 Aaa 9,720,864
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Pennsylvania (continued)
$ 5,000,000 The Pittsburgh Water and Sewer Authority, Water and Sewer System First Lien Revenue Bonds, Series A
of 1998, 5.250%, 9/01/23 3/08 at 100 Aaa $ 4,930,700
- ------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 3.8%
5,140,000 Rhode Island Depositors Economic Protection Corporation, Special Obligation Bonds, 1991 Series A,
7.100%, 8/01/18 (Pre-refunded to 8/01/01) 8/01 at 102 Aaa 5,669,009
20,475,000 Rhode Island Depositors Economic Protection Corporation, Special Obligation Refunding Bonds,
1992 Series B, 5.250%, 8/01/21 (Pre-refunded to 2/01/11) 2/11 at 100 Aaa 21,295,024
38,650,000 The Convention Center Authority (Rhode Island), Revenue Bonds, 1991 Series A, 6.700%, 5/15/20
(Pre-refunded to 5/15/01) 5/01 at 102 Aaa 42,033,421
2,195,000 Providence Housing Development Corporation, Mortgage Revenue Refunding Bonds, Series 1994A
(FHA Insured Mortgage Loan-Barbara Jordan Apartments Project) (Providence, Rhode Island),
6.750%, 7/01/25 7/04 at 102 Aaa 2,366,912
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 1.1%
South Carolina Jobs-Economic Development Authority, Hospital
Facilities Revenue Bonds, Series 1995 (Oconee Memorial Hospital, Inc.):
3,000,000 6.150%, 3/01/15 3/05 at 102 AAA 3,214,980
775,000 6.150%, 3/01/25 3/05 at 102 AAA 829,397
5,275,000 Lexington County Health Services District, Inc., South Carolina, Hospital Revenue Bonds, Series 1991,
6.750%, 10/01/18 (Pre-refunded to 10/01/01) 10/01 at 102 Aaa 5,787,941
22,000,000 Piedmont Municipal Power Agency (South Carolina), Electric Revenue Bonds, 1988 Refunding Series,
0.000%, 1/01/13 No Opt. Call Aaa 10,236,937
- ------------------------------------------------------------------------------------------------------------------------------------
South Dakota - 0.2%
4,280,000 South Dakota Health and Educational Facilities Authority, Revenue Bonds, Series 1989 (Rapid City
Regional Hospital), 7.000%, 9/01/14 9/99 at 102 Aaa 4,514,373
- ------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.4%
7,500,000 Metropolitan Nashville Airport Authority (Tennessee), Airport Improvement Revenue Bonds, Refunding
Series 1991C, 6.600%, 7/01/15 7/01 at 102 Aaa 8,083,125
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 4.9%
14,715,000 Texas Department of Housing and Community Affairs, Single Family Mortgage Revenue Bonds,
1996 Series D, 6.250%, 9/01/28 (Alternative Minimum Tax) 9/06 at 102 Aaa 15,456,489
6,000,000 Brazos County Health Facilities, Development Corporation, Franciscan Services Corporation, Obligated
Group, Revenue Bonds, Series 1997 A, 5.375%, 1/01/28 7/07 at 102 Aaa 5,968,680
9,500,000 Coastal Bend Health Facilities Development Corporation, Incarnate Word Health Services Revenue
Bonds, Series 1993-A, 6.000%, 11/15/22 11/02 at 102 Aaa 10,061,165
700,000 East Texas Housing Finance Corporation, Single Family Mortgage Revenue Bonds (GNMA Mortgage-Backed
Securities Program), Series 1990, 7.750%, 6/01/17
(Alternative Minimum Tax) 6/00 at 103 AAA 737,394
Harris County, Texas, Toll Road Senior Lien Revenue Bonds, Series 1989:
9,000,000 0.000%, 8/15/18 (Pre-refunded to 8/15/09) 8/09 at 53 27/32 Aaa 2,794,140
39,000,000 0.000%, 8/15/19 (Pre-refunded to 8/15/09) 8/09 at 50 8/32 Aaa 11,302,590
7,280,000 0.000%, 8/15/20 (Pre-refunded to 8/15/09) 8/09 at 46 29/32 Aaa 1,969,604
5,085,000 0.000%, 8/15/21 (Pre-refunded to 8/15/09) 8/09 at 43 25/32 Aaa 1,284,217
5,500,000 Harris County Health, Facilities Development Corporation, Hospital Revenue Bonds (Memorial
Hermann Hospital System Project), Series 1998, 5.125%, 6/01/22 6/08 at 101 Aaa 5,304,420
14,160,000 City of Houston, Texas, Water and Sewer System, Junior Lien Revenue Refunding Bonds, Series 1991C,
6.375%, 12/01/17 12/01 at 102 Aaa 15,183,060
13,500,000 Matagorda County Navigation District Number One (Texas), Pollution Control Revenue Refunding Bonds
(Central Power and Light Company Project), Series 1996, 6.125%, 5/01/30
(Alternative Minimum Tax) 5/06 at 102 Aaa 14,377,635
3,945,000 Ratama Development Corporation, Special Facilities Revenue Bonds (Retama Park Racetrack Project),
Series 1993, 10.000%, 12/15/17 No Opt. Call Aaa 6,273,221
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Utah - 0.6%
$ 6,430,000 Utah Housing Finance Agency, Multifamily Housing Refunding Bonds, 1992 Issue A (FHA Insured Mortgage
Loans), 7.400%, 7/01/24 1/02 at 102 AA $ 6,915,658
3,870,000 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1994 Issue D (Federally Insured or
Guaranteed Mortgage Loans), 6.750%, 1/01/27 (Alternative Minimum Tax) 7/04 at 102 Aaa 4,082,966
- ------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.4%
8,000,000 Industrial Development Authority of Loudoun County, Virginia, Hospital Revenue Bonds (Loudoun Hospital
Center), Series 1995, 5.800%, 6/01/20 6/05 at 102 Aaa 8,302,560
- ------------------------------------------------------------------------------------------------------------------------------------
Washington - 3.6%
19,750,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1989, (Group Health Cooperative of
Puget Sound, Seattle), 7.200%, 12/01/15 12/99 at 102 Aaa 20,961,464
4,100,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding Revenue Bonds, Series 1992A,
6.250%, 7/01/17 7/02 at 102 Aaa 4,408,565
8,500,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds, Series 1993B,
5.600%, 7/01/17 7/03 at 102 Aaa 8,623,930
2,515,000 Public Utility District No. 1, of Douglas County, Washington, Wells Hydroelectric Revenue Bonds, Series
of 1990, 7.800%, 9/01/18 (Alternative Minimum Tax) 9/00 at 102 A+ 2,724,650
24,675,000 Municipality of Metropolitan Seattle (Seattle, Washington), Limited Sales Tax General Obligation Bonds,
Series 1991 (Refunding), 6.625%, 1/01/17 7/98 at 101 1/2 Aa 25,139,876
4,250,000 Public Utility District No. 1 of Snohomish County, Washington, Generation System Revenue Bonds,
Series 1989, 6.650%, 1/01/16 No Opt. Call Aaa 4,657,022
- ------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 1.1%
5,050,000 State of West Virginia, University of West Virginia Board of Trustees, Dormitory
Revenue Bonds (West Virginia University Project), 1992 Series A, 6.750%, 5/01/17
(Pre-refunded to 5/01/02) 5/02 at 100 Aaa 5,498,187
4,100,000 West Virginia Water Development Authority, Water Development Revenue Refunding Bonds (Loan
Program), 1991 Series A, 7.000%, 11/01/25 11/01 at 102 Aaa 4,494,706
10,000,000 The County Commission of Harrison County, West Virginia, Solid Waste Disposal Revenue Bonds
(West Penn Power Company Harrison Station Project), Series B, 6.300%, 5/01/23
(Alternative Minimum Tax) 5/03 at 102 A+ 10,633,800
- ------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 3.4%
10,000,000 Wisconsin Health and Educational Facilities Authority Revenue Bonds, Series 1990A (Marshfield
Clinic Project), 7.250%, 8/01/15 (Pre-refunded to 8/01/00) 8/00 at 102 Aaa 10,843,900
8,150,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Series 1991 (St. Luke's Medical
Center Project), 7.100%, 8/15/19 (Pre-refunded to 8/15/01) 8/01 at 102 Aaa 8,985,782
17,710,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Series 1991-B (Novus Health
Group), 6.750%, 12/15/20 (Pre-refunded to 12/15/01) 12/01 at 102 Aaa 19,470,196
15,000,000 Wisconsin Health and Educational Facilities Authority Revenue Bonds, Series 1997 (Marshfield Clinic
Project), 5.750%, 2/15/27 2/07 at 102 AAA 15,448,500
8,270,000 WIsconsin Housing and Economic Development Authority, Housing Revenue Bonds, 1992 Series A,
6.850%, 11/01/12 11/02 at 102 Aaa 8,822,352
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 1.3%
25,400,000 Puerto Rico Highway and Transportation Authority, Transportation Revenue Bonds (Series A),
5.000%, 7/01/28 7/08 at 101 Aaa 24,404,827
- ------------------------------------------------------------------------------------------------------------------------------------
$1,857,909,000 Total Investments - (cost $1,693,104,319) - 98.5% 1,830,281,064
==============
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Temporary Investments in Short-Term Municipal Securities - 0.1%
$ 1,500,000 City of Valdez, Alaska, Marine Terminal Revenue Refunding Bonds, (Exxon Pipeline Company Project),
============= 1993 Series B, Variable Rate Demand Bonds, 4.200%, 12/01/33+ VMIG-1 $ 1,500,000
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 26,903,199
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,858,684,263
====================================================================================================================
All of the bonds in the portfolio, excluding temporary investments in
short-term municipal securities, are either covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or
trust containing sufficient U.S. government or U.S. government agency
securities, any of which ensure the timely payment of principal and interest.
* Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions at
varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
(DD) Security purchased on a delayed delivery basis (note 1).
(WI) Security purchased on a when-issued basis (note 1).
+ The security has a maturity of more than one year, but has variable
rate and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
NUVEEN PREMIER INSURED MUNICIPAL INCOME FUND, INC. (NIF)
April 30, 1998
(Unaudited)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alabama - 1.6%
$ 2,250,000 BMC Special Care Facilities Financing Authority of The City of Montgomery, Revenue Bonds,
Series 1992-A (Baptist Medical Center), 5.750%, 1/01/22 1/02 at 100 Aaa $ 2,291,423
3,000,000 BMC Special Care Facilities Financing Authority of the City of Montgomery, Revenue Bonds,
Series 1992-B (Baptist Medical Center), 6.700%, 12/01/10 12/02 at 102 Aaa 3,296,160
Water Revenue Bonds, Series 1996 of West Morgan-East Lawrence Water Authority:
1,000,000 5.625%, 8/15/21 8/06 at 102 Aaa 1,024,640
400,000 5.625%, 8/15/25 8/06 at 102 Aaa 409,856
- ------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 1.3%
5,555,000 Sabastian County (Arkansas), Community Junior College District, General Obligation Refunding
and Improvement Bonds, Series 1997, 5.600%, 4/01/17 4/07 at 101 Aaa 5,741,815
- ------------------------------------------------------------------------------------------------------------------------------------
California - 18.4%
4,000,000 State of California Veterans General Obligation Bonds, Series BH, 5.400%, 12/01/16
(Alternative Minimum Tax) 12/08 at 101 Aaa 4,061,800
1,090,000 Housing Authority of the County of Kern, Guaranteed Tax-Exempt Mortgage Obligations, 1994 Series A,
Subseries I, 7.150%, 12/30/24 (Alternative Minimum Tax) No Opt. Call AAA 1,252,388
595,000 Housing Authority of the County of Kern, Guaranteed Tax-Exempt Mortgage Obligations, 1994 Series A,
Subseries III, 7.450%, 6/30/25 (Alternative Minimum Tax) No Opt. Call AAA 675,045
6,045,000 La Verne - Grand Terrace Housing Finance Agency, Single Family Residential Mortgage Revenue
Bonds, 1984 Series A, 10.250%, 7/01/17 No Opt. Call Aaa 9,003,363
5,840,000 Lancaster Redevelopment Agency, Lancaster Residential Redevelopment Project Area, Tax Allocation
Refunding Bonds, Issue of 1992, 6.100%, 8/01/19 8/01 at 102 Aaa 6,212,125
5,040,000 Northern California Power Agency, Hydroelectric Project Number One, Revenue Bonds,
1992 Refunding Series A, 10.000%, 7/01/04 No Opt. Call Aaa 6,518,282
5,000,000 Ontario Redevelopment Financing Authority (San Bernardino County, California), 1995 Revenue
Refunding Bonds (Ontario Redevelopment Project No. 1), 7.400%, 8/01/25 No Opt. Call Aaa 6,598,000
1,340,000 Pomona Public Financing Authority, California, 1992 Revenue Bonds, Series A (Water Treatment Project),
6.100%, 7/01/17 7/02 at 102 Aaa 1,434,376
8,880,000 City of Ponoma, California, Single Family Mortgage Revenue Refunding Bonds (GNMA and FHLMC
Mortgage-Backed Securities), Series 1990B, 7.500%, 8/01/23 No Opt. Call Aaa 11,442,146
10,305,000 City of San Bernardino, California, Single Family Mortgage Revenue Refunding Bonds (GNMA
Mortgage-Backed Securities), Series 1990A 7.500%, 5/01/23 No Opt. Call Aaa 12,852,396
14,755,000 County of San Bernardino, California, Single Family Mortgage Revenue Bonds (GNMA Mortgage-
Backed Securities), 1988 Series A, 8.300%, 9/01/14
(Alternative Minimum Tax) No Opt. Call Aaa 19,226,650
2,000,000 City of Santa Barbara, California, Certificates of Participation (1992 Water System Improvement
Project and Refunding), 6.700%, 4/01/27 4/02 at 102 Aaa 2,170,400
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado - 0.3%
1,225,000 Summit School District RE-1, Summit County, Colorado, General Obligation Improvement Bonds,
Series 1994, 6.700%, 12/01/14 (Pre-refunded to 12/01/04) 12/04 at 100 Aaa 1,383,405
- ------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 1.2%
2,000,000 District of Columbia (Washington, D.C.), Hospital Revenue Bonds (National Rehabilitation Hospital,
Inc. Issue), Series 1989A, Medlantic Healthcare Group,
7.125%, 11/01/19 (Pre-refunded to 11/01/99) 11/99 at 102 Aaa 2,129,820
3,385,000 District of Columbia General Obligation Bonds, Series 1998A,
5.000%, 6/01/17 6/08 at 101 Aaa 3,219,000
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Florida - 3.5%
$ 3,750,000 Florida Housing Finance Authority Housing Revenue Bonds, Series 1997 J-1, Willow Lake Apartments
Project, 5.350%, 7/01/27 (Alternative Minimum Tax) 1/08 at 102 Aaa $ 3,752,925
6,835,000 Polk County Industrial Development Authority, Industrial Development Variable Rate Revenue Bonds,
1985 Series 2 (Winter Haven Hospital Project), 6.250%, 9/01/15 9/02 at 103 Aaa 7,407,705
4,200,000 Financing Corporation for the School Board of Sarasota County, Florida, Lease Revenue Bonds,
Series 1990, 7.250%, 7/01/10 (Pre-refunded to 7/01/00) 7/00 at 101 Aaa 4,512,354
- ------------------------------------------------------------------------------------------------------------------------------------
Georgia - 3.6%
Development Authority of Burke County, Georgia, Pollution
Control Revenue Bonds (Oglethorpe Power Corporation Vogtle
Project), Series 1992:
3,555,000 7.800%, 1/01/08 (Pre-refunded to 1/01/03) 1/03 at 103 Aaa 4,149,360
10,000,000 8.000%, 1/01/15 (Pre-refunded to 1/01/03) 1/03 at 103 Aaa 11,755,500
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 12.6%
6,690,000 Illinois HealthFacilities Authority Revenue Bonds, Series 1989 (Memorial Medical Center Project),
6.500%, 10/01/16 (Pre-refunded to 10/01/00) 10/00 at 102 Aaa 7,172,416
2,260,000 City of Carbondale, Illinois, Hospital Revenue Refunding Bonds (Southern Illinois Hospital Services),
Series 1987, 6.875%, 3/01/15 3/99 at 100 Aaa 2,293,041
10,000,000 City of Chicago (Illinois), General Obligation Adjustable Rate Bonds, Central Public Library Project,
Series C of 1988, 6.850%, 1/01/17 (Pre-refunded to 7/01/02) 7/02 at 101 1/2 Aaa 11,075,400
8,200,000 Board of Education of the City of Chicago, General Obligation Lease Certificates, 1992 Series A,
6.250%, 1/01/15 No Opt. Call Aaa 9,239,760
2,600,000 The County of Cook, Illinois, General Obligation Bonds, Series 1991, 6.250%, 11/01/21
(Pre-refunded to 11/01/01) 11/01 at 102 Aaa 2,813,798
Aurora West School District Number 129, Kane County, Illinois,
General Obligation School Bonds, Series 1977:
1,865,000 5.125%, 2/01/14 2/08 at 100 Aaa 1,838,107
1,700,000 5.000%, 2/01/16 2/08 at 100 Aaa 1,639,752
10,150,000 Onterie Center Housing Finance Corporation (An Illinois Not for
Profit Corporation), Mortgage Revenue Refunding Bonds, Series
1992A (FHA Insured Mortgage Loan-Onterie Center Project), 7.050%, 7/01/27 7/02 at 102 Aaa 10,803,863
3,225,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and Will Countries,
Illinois, General Obligation Bonds,Series 1992A, 9.000%, 06/01/09 No Opt. Call Aaa 4,370,391
4,000,000 Public Building Commission of St. Clair County, Illinois, St. Clair County, Illinois, Public Building
Revenue Bonds, Series 1992, 6.350%, 12/01/09 (Alternative Minimum Tax) 12/02 at 102 Aaa 4,294,720
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 4.8%
2,500,000 Indiana Bond Bank, Special Program Bonds, Series 1985A, 9.000%, 8/01/09
(Pre-refunded to 2/01/99) 2/99 at 101 1/2 Aaa 2,692,025
5,375,000 Indiana Health Facility Financing Authority, Hospital Revenue Refunding and Improvement Bonds,
Series 1992 (Community Hospitals Projects), 6.400%, 5/01/12 5/02 at 102 Aaa 5,762,108
2,000,000 Fremont Middle School Building Corporation First Mortgage Bonds, Series 1992, Fremont, Indiana,
6.750%, 3/15/13 (Pre-refunded to 3/15/02) 3/02 at 101 Aaa 2,189,940
7,000,000 Southwest Allen Multi School Building Corporation, First Mortgage Refunding Bonds, Series 1992 B,
Fort Wayne, Indiana, 6.375%, 1/15/09 1/02 at 101 Aaa 7,493,780
3,000,000 Wheeler-Union Township School Building Corporation (Porter County, Indiana), First Mortgage Bonds
Series 1997, 5.625%, 1/15/15 7/07 at 102 Aaa 3,086,040
- ------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 1.6%
6,500,000 County of Daviess, Kentucky, Insured Hospital Revenue Bonds 1992 (ODCH, Inc. Project),
Series A, 6.250%, 8/01/22 8/02 at 102 Aaa 6,995,625
- ------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 2.2%
Louisiana Public Facilities Authority, Hospital Revenue Bonds
(Our Lady of Lourdes Regional Medical Center Project), Series 1992:
5,000,000 6.375%, 2/01/12 2/02 at 102 Aaa 5,392,750
4,000,000 6.450%, 2/01/22 2/02 at 102 Aaa 4,344,560
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Massachusetts - 2.8%
$ 8,335,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, New England Medical
Center Hospitals Issue, Series F, 6.625%, 7/01/25 7/02 at 102 Aaa $ 9,062,812
3,000,000 Framingham Housing Authority, Massachusetts, Mortgage Revenue Bonds (GNMA Collateralized-
Beaver Terrace Apartments Project), Series 1992A, 6.650%, 2/20/32 8/01 at 102 AAA 3,149,100
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan - 0.5%
2,000,000 Paw Paw Public Schools, County of Van Buren,State of Michigan, 1995 School Building and Site
Bonds (General Obligation-Unlimited Tax), 5.625%, 5/01/25 5/05 at 100 Aaa 2,034,100
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 0.4%
1,770,000 Minnesota Housing Finance Agency, Rental Housing Bonds, 1995 Series D
(Non-AMT), 5.950%, 2/01/18 2/05 at 102 Aaa 1,839,526
- ------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 0.6%
2,560,000 Mississippi Home Corporation, Single Family Senior Revenue Refunding Bonds, Series 1990A,
9.250%, 3/01/12 9/00 at 103 Aaa 2,734,643
- ------------------------------------------------------------------------------------------------------------------------------------
Missouri - 3.9%
4,000,000 Health and EducationalFacilities Authority of the State of Missouri, Educational Facilities Revenue
Bonds (Saint Louis University), Series 1996, 5.200%, 10/01/26 10/06 at 102 Aaa 3,889,920
7,495,000 The Industrial Development Authority of Jefferson County, Missouri, Housing Revenue Bonds
(Richardson Road Apartments Project), Series 1985, 11.000%, 12/15/15
(Pre-refunded to 8/15/07) 8/07 at 100 AAA 10,962,262
2,250,000 The Industrial Development Authority of TheCity of University City, Missouri, Multifamily Housing Revenue
Refunding Bonds (GNMA Collateralized-Canterbury Gardens Project),
Series 1995A, 6.000%, 12/20/30 12/05 at 102 AAA 2,321,235
- ------------------------------------------------------------------------------------------------------------------------------------
Montana - 3.2%
13,000,000 City of Forsyth, Rosebud County, Montana, Pollution Control Revenue Refunding Bonds (Puget Sound
Power and Light Company Colstrip Project), Series 1992, 6.800%, 3/01/22 3/02 at 102 Aaa 14,126,320
- ------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 0.9%
2,500,000 Nebraska Investment Finance Authority, Multifamily Housing Revenue Bonds (Cambury Hills
Apartments Project), Series 1997, 5.875%, 10/01/29
(Alternative Minimum Tax) 10/07 at 101 Aaa 2,553,050
1,415,000 Nebraska Investment Finance Authority, Single Family Mortgage Revenue Bonds, 1998 Series 1,
8.125%, 8/15/38 (Alternative Minimum Tax) 8/98 at 102 Aaa 1,451,875
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada - 3.7%
10,250,000 Humboldt County, Nevada, Variable Rate Demand Pollution Control Refunding Revenue Bonds
(Sierra Pacific Power Company Project), Series 1987, 6.550%, 10/01/13 5/02 at 102 Aaa 11,127,298
5,050,000 Washoe County, Nevada, Variable Rate Demand Gas and Water Facilities Refunding Revenue Bonds
(Sierra Pacific Power Company Project), Series 1987, 6.300%, 12/01/14 7/02 at 102 Aaa 5,415,065
- ------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 0.7%
3,000,000 New Hampshire Higher Educational and Health Facilities Authority, Hospital Revenue Bonds, Concord
Hospital Issue, Series 1996, 6.000%, 10/01/26 10/06 at 102 Aaa 3,181,140
- ------------------------------------------------------------------------------------------------------------------------------------
New York - 5.5%
7,645,000 Metropolitan Transportation Authority, Transit Facilities Revenue Bonds,
Series J, 9.100%, 7/01/05 No Opt. Call Aaa 9,675,206
1,425,000 The City of New York, General Obligation Bonds, Fiscal 1990 Series H,
7.875%, 8/01/00 No Opt. Call Aaa 1,539,855
The City of New York, General Obligation Bonds, 1992 Series C:
6,910,000 6.625%, 8/01/14 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 7,615,096
90,000 6.625%, 8/01/14 8/02 at 101 1/2 Aaa 98,510
The City of New York General Obligation Bonds, Fiscal 1992
Series Subseries C-1:
4,950,000 6.625%, 8/01/15 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 5,455,098
50,000 6.625%, 8/01/15 8/02 at 101 1/2 Aaa 54,424
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Ohio - 1.2%
County of Cuyahoga, Ohio, Hospital Improvement and Refunding
Revenue Bonds, Series 1997 (The MetroHealth System Project):
$ 2,600,000 5.250%, 12/01/17 12/07 at 102 Aaa $ 2,606,604
2,690,000 5.500%, 2/15/27 2/07 at 102 Aaa 2,724,728
- ------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 3.0%
8,880,000 Oklahoma Housing Finance Agency, GNMA Collateralized Single Family Mortgage Revenue Bonds,
Series 1987A, 7.997%, 8/01/18 (Alternative Minimum Tax) No Opt. Call AAA 10,209,158
3,000,000 Tulsa Industrial Authority, Multifamily Housing Revenue Refunding Bonds (GNMA Collateralized-
Country Club of Woodland Hills Development), Series 1995,
6.250%, 11/01/27 11/05 at 103 Aaa 3,172,800
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 4.7%
19,140,000 Montgomery County Industrial Development Authority, Pollution Control Revenue Refunding Bonds
(Philadelphia Electric Company Project), 1992 Series A, 6.625%, 6/01/22 6/02 at 102 Aaa 20,788,528
- ------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 4.2%
12,750,000 Rhode Island Depositors Economic Corporation, Special Obligation Bonds, 1992 Series A,
6.625%, 8/01/19 (Pre-refunded to 8/01/02) 8/02 at 102 Aaa 14,088,495
2,000,000 State of Rhode Island and Providence Plantations, General Obligation Bonds, Consolidated Capital
Development Loan of 1993, Refunding Series, 7.000%, 6/15/05 No Opt. Call Aaa 2,288,660
1,900,000 The Convention Center Authority (Rhode Island), Revenue Bonds, 1991 Series A, 6.700%, 5/15/20
(Pre-refunded to 5/15/01) 5/01 at 102 Aaa 2,066,326
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 2.4%
9,450,000 South Carolina Public Service Authority, Santee Cooper, Revenue Bonds, 1991 Series D,
6.500%, 7/01/24 (Pre-refunded to 7/01/02) 7/02 at 102 Aaa 10,391,504
- ------------------------------------------------------------------------------------------------------------------------------------
South Dakota - 0.5%
2,100,000 South Dakota Health and Educational Facilities Authority, Vocational Education Program
Revenue Bonds, Series 1993A and 1993B, 5.700%, 8/01/23 8/03 at 102 Aaa 2,158,758
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 4.8%
5,000,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue Bonds (Texas Utilities Electric
Company Project), Series 1993A, 6.050%, 4/01/25 (Alternative Minimum Tax) 4/03 at 102 Aaa 5,258,900
1,900,000 Corpus Christi Housing Finance Corporation, Single Family Mortgage Senior Revenue Refunding Bonds,
Series 1991A, 7.700%, 7/01/11 7/01 at 103 Aaa 2,096,612
1,620,000 City of El Paso Property Finance Authority, Inc., Single Family
Mortgage Revenue Bonds (GNMA Mortgage- Backed Securities
Program), Series 1992A, 8.700%, 12/01/18 (Alternative Minimum Tax) 6/02 at 103 Aaa 1,741,662
Harris County, Texas, Toll Road Senior Lien Revenue Refunding Bonds, Series 1992A:
5,210,000 6.500%, 8/15/17 (Pre-refunded to 8/15/02) 8/02 at 102 Aaa 5,735,376
1,040,000 6.500%, 8/15/17 8/02 at 102 Aaa 1,131,915
1,600,000 Harris County, Texas, Toll Road Senior Lien Revenue Refunding Bonds,
Series 1992B, 6.625%, 8/15/17 8/99 at 100 Aaa 1,635,312
3,145,000 Rio Grande Valley Health Facilities Development Corporation (Texas), Hospital Revenue Bonds (Valley
Baptist Medical Center Project), Series 1992A, 6.375%, 8/01/22 8/02 at 102 Aaa 3,399,808
- ------------------------------------------------------------------------------------------------------------------------------------
Utah - 0.4%
1,490,000 State Board of Regents of the State of Utah, Weber State University, Student Facilities System
Revenue Bonds, Series 1992, 6.250%, 4/01/10 4/02 at 100 Aaa 1,576,644
- ------------------------------------------------------------------------------------------------------------------------------------
Washington - 2.2%
1,085,000 North Franklin School District No. J51-162, Franklin and Adams Counties, Washington, Unlimited Tax
General Obligation Bonds, 1992, 6.700%, 12/01/10
(Pre-refunded to 12/01/02) 12/02 at 100 Aaa 1,191,676
Puyallup School District No. 3, Pierce County, Washington, (Unlimited Tax General Obligation and
Refunding Bonds, 1992 Series A:
2,000,000 6.650%, 12/01/07 (Pre-refunded to 12/01/02) 12/02 at 100 Aaa 2,190,780
4,750,000 6.700%, 12/01/09 (Pre-refunded to 12/01/02) 12/02 at 100 Aaa 5,212,888
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Washington (continued)
$ 1,325,000 City of Richland, Washington, Electric Revenue Bonds, 1992,
6.700%, 11/01/11 11/02 at 100 Aaa $ 1,438,684
- ------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 1.5%
6,000,000 Mason County, West Virginia, Pollution Control Revenue Bonds (Appalachian Power Company Project),
Series I, 6.850%, 6/01/22 6/02 at 102 Aaa 6,554,700
- ------------------------------------------------------------------------------------------------------------------------------------
$ 386,480,000 Total Investments - (cost $398,630,298) - 98.2% 433,966,063
=============
Temporary Investments in Short-Term Municipal Securities - 0.4%
$ 1,000,000 Ascension Parish Pollution Control (BASF Wyandotte Corporation), Variable Rate Demand Bonds,
4.250%, 12/01/05+ P-1 1,000,000
800,000 City of Valdez, Alaska, Marine Terminal Revenue Refunding Bonds (Exxon Pipeline Company Project),
1993 Series B, Variable Rate Demand Bonds, 4.200%, 12/01/33+ VMIG-1 800,000
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,800,000 Total Temporary Investments - 0.4% 1,800,000
=============
Other Assets Less Liabilities - 1.4% 6,251,468
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 442,017,531
====================================================================================================================
All of the bonds in the portfolio, excluding temporary investments in
short-term municipal securities, are either covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or
trust containing sufficient U.S. government or U.S. government agency
securities, any of which ensure the timely payment of principal and interest.
* Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions at
varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
+ The security has a maturity of more than one year, but has variable
rate and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND 2 (NPX)
April 30, 1998
(Unaudited)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alabama - 2.1%
$ 10,000,000 The Health Care Authority of the City of Huntsville, Health Care Facilities Revenue Bonds, Series 1994-A,
4.650%, 6/01/24 (Mandatory put 6/01/05) 6/04 at 110 Aaa $ 10,029,600
2,500,000 City of Mobile, Alabama, General Obligation Refunding Warrants, Series 1996,
5.750%, 2/15/16 2/06 at 102 Aaa 2,623,825
1,600,000 City of Northport (Alabama), General Obligation Warrants, Series 1996-B,
5.700%, 3/01/21 3/06 at 102 Aaa 1,657,120
2,000,000 City of Scottsboro (Alabama), General Obligation School Warrants,
Series 1996- B, 5.750%, 7/01/14 7/06 at 102 Aaa 2,108,500
- ------------------------------------------------------------------------------------------------------------------------------------
Alaska - 1.0%
4,200,000 Alaska Housing Finance Corporation, Mortgage Revenue Bonds, 1996 Series A,
6.050%, 12/01/17 6/06 at 102 Aaa 4,426,632
3,000,000 Municipality of Anchorage, Alaska, 1989 General Obligation Refunding
Water Bonds, 6.250%, 6/01/23 6/99 at 102 Aaa 3,066,690
- ------------------------------------------------------------------------------------------------------------------------------------
California - 7.3%
6,450,000 California Housing Finance Agency, Multi-Unit Rental Housing Revenue Bonds, 1992 Series A,
6.625%, 2/01/24 (Alternative Minimum Tax) 2/03 at 102 Aa2 6,765,083
2,500,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1996 Series D, 6.150%, 8/01/28
(Alternative Minimum Tax) 8/07 at 102 Aaa 2,645,500
6,500,000 California Housing Finance Agency, Multifamily Housing Revenue Bonds III, 1997 Series A,
5.950%, 8/01/28 (Alternative Minimum Tax) 2/07 at 102 Aaa 6,750,445
1,745,000 California Housing Finance Agency, Multifamily Housing Revenue Bonds III, 1998 Series B,
4.750%, 8/01/08 (Alternative Minimum Tax) (WI) No Opt. Call Aaa 1,723,292
10,355,000 State of California Various Purpose General Obligation Bonds,
11.000%, 8/01/03 No Opt. Call Aaa 13,527,772
Central Coast Water Authority Refunding Revenue Bonds (State
Water Project Regional Facilities), Series 1996B:
1,020,000 5.800%, 10/01/16 10/06 at 100 Aaa 1,071,755
2,800,000 5.850%, 10/01/22 10/06 at 100 Aaa 2,918,804
3,000,000 M-S-R Public Power Agency, California, San Juan Project Revenue Bonds,
Series F, 6.000%, 7/01/20 7/03 at 102 Aaa 3,174,960
3,500,000 Northern California Power Agency, Hydroelectric Project Number One, Revenue Bonds, 1993 Refunding
Series A, 5.500%, 7/01/16 7/03 at 102 Aaa 3,559,815
6,850,000 County of Orange, California, 1996 Recovery Certificates of Participation,
Series A, 6.000%, 7/01/26 7/06 at 102 Aaa 7,317,102
San Leandro Housing Finance Corporation Mortgage Revenue
Refunding Bonds, Series 1993A (FHA Insured Mortgage Loan-Ashland
Village Apartments Section 8 Assisted Project):
1,785,000 6.550%, 1/01/12 1/02 at 102 Aaa 1,877,427
5,100,000 6.650%, 1/01/25 1/02 at 102 Aaa 5,359,080
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado- 1.4%
855,000 Adams County School District 12, Thornton General Obligation Bonds (Colorado State School Intercept
Program), 7.500%, 12/15/06 No Opt. Call Aaa 1,024,435
9,425,000 Town of Castle Rock, Colorado, Multifamily Housing Revenue Bonds (The Pines at Castle Rock
(Phase II) Project), 1996 Series A, 6.200%, 12/01/28
(Alternative Minimum Tax) 12/06 at 101 Aaa 9,875,138
- ------------------------------------------------------------------------------------------------------------------------------------
District of Columbia- 3.1%
5,000,000 District of Columbia (Washington, D.C.), General Obligation Refunding Bonds,
Series 1994A, 6.500%, 6/01/09 No Opt. Call Aaa 5,657,150
5,000,000 District of Columbia (Washington, D.C.), General Obligation
Refunding Bonds, Series 1993B, 5.500%, 6/01/12 No Opt. Call Aaa 5,193,900
5,000,000 District of Columbia, Hospital Improvement and Refunding Revenue Bonds (Children's Hospital Issue),
Series 1992A, 6.250%, 7/15/19 7/02 at 102 Aaa 5,358,750
3,775,000 District of Columbia Housing Finance Agency, Collateralized Single Family Mortgage Revenue Bonds,
Series 1990C-4, 6.350%, 12/01/24 (Alternative Minimum Tax) 6/03 at 102 Aaa 3,940,760
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
District of Columbia (continued)
$ 4,030,000 District of Columbia Housing Finance Agency, Mortgage Revenue Refunding Bonds, Series 1993A
(FHA Insured Mortgage Loan-Southview Apartments II Section 8
Assisted Project), 6.000%, 1/01/25 7/03 at 102 Aaa $ 4,138,085
- ------------------------------------------------------------------------------------------------------------------------------------
Florida - 1.1%
2,420,000 Florida Department of General Services Bond Finance Division,
Department of Natural Resources Bonds, Preservation 2000
Revenue, Series 1992-A, 6.100%, 7/01/04 (Pre-refunded to 7/01/02) 7/02 at 101 Aaa 2,604,259
6,105,000 Osceola County, Florida, Capital Improvement Revenue Bonds, Series 1998,
5.000%, 9/01/05 No Opt. Call Aaa 6,293,583
- ------------------------------------------------------------------------------------------------------------------------------------
Georgia - 2.4%
3,000,000 Municipal Electric Authority of Georgia, Power Revenue Bonds, Series EE,
6.000%, 1/01/22 1/04 at 102 Aaa 3,167,430
645,000 Housing Authority of Fulton County, Georgia, Single Family Mortgage Revenue Refunding Bonds (GNMA
Mortgage-Backed Securities Program), Series 1996A, 6.200%, 9/01/27
(Alternative Minimum Tax) 9/06 at 102 AAA 675,515
14,390,000 County Board of Education of Richmond County (Georgia), General Obligation School Bonds, Series 1997,
5.950%, 11/01/26 5/98 at 100 Aaa 14,525,410
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 26.2%
10,000,000 Illinois Development Finance Authority, Pollution Control Revenue Refunding Bonds (Commonwealth Edison
Company Project), Project 1996B, 4.400%, 12/01/06 No Opt. Call Aaa 9,746,900
Illinois Development Finance Authority, School District Program
Revenue Bonds, Series 1995 (Indian Prairie Community Unit School
District Number 204 Project):
3,635,000 7.750%, 12/30/03 No Opt. Call Aaa 4,236,593
4,340,000 7.750%, 12/30/04 No Opt. Call Aaa 5,153,880
2,000,000 Illinois Development Finance Authority, Mortgage Revenue Refunding Bonds, Series 1997A (FHA Insured
Mortgage Loans-Section 8 Assisted Projects), 5.750%, 7/01/18 7/07 at 102 Aaa 2,061,360
1,950,000 Illinois Health Facilities Authority, Health Facilities Refunding Revenue Bonds (SSM Health Care),
Series 1992AA, 6.550%, 6/01/14 No Opt. Call Aaa 2,254,883
Illinois Health Facilities Authority (Lutheran General HealthSystem), Revenue Bonds, Series 1993A:
4,355,000 6.125%, 4/01/12 No Opt. Call Aaa 4,835,879
5,000,000 6.250%, 4/01/18 No Opt. Call Aaa 5,652,250
5,000,000 Illinois Health Facilities Authority, FHA Insured Mortgage Revenue Bonds, Series 1996 (Sinai
Health System), 6.000%, 2/15/24 2/06 at 102 Aaa 5,268,150
1,770,000 Illinois Health Facilities Authority Revenue Bonds, Series 1991 (Elmhurst Memorial Hospital),
6.625%, 1/01/22 1/02 at 102 Aaa 1,908,343
3,765,000 Illinois Housing Development Authority, Housing Development Bonds,
1993 Series A, 6.000%, 7/01/18 1/04 at 102 A1 3,862,212
4,000,000 The Illinois State Toll Highway Authority, Toll Highway Priority Revenue Bonds,
1992 Series A, 6.200%, 1/01/16 1/03 at 102 Aaa 4,299,040
2,500,000 City of Aurora, Kane, DuPage, Kendall and Will Counties, Illinois, General Obligation Corporate
Purpose Bonds, Series 1996, 5.800%, 1/01/14 1/05 at 100 Aaa 2,600,550
1,500,000 City of Chicago, General Obligation Bonds, Project Series 1995,
6.125%, 1/01/16 7/05 at 102 Aaa 1,620,315
City of Chicago, Chicago Midway Airport Revenue Bonds, 1994 Series A:
1,100,000 6.100%, 1/01/08 (Alternative Minimum Tax) 1/04 at 102 Aaa 1,181,004
2,750,000 6.250%, 1/01/14 (Alternative Minimum Tax) 1/04 at 102 Aaa 2,943,710
9,000,000 City of Chicago, Chicago-O'Hare International Airport, International Terminal Special Revenue Bonds,
Series 1992, 6.750%, 1/01/18 (Alternative Minimum Tax) 1/02 at 102 Aaa 9,725,040
8,235,000 City of Chicago, Chicago-O'Hare International Airport, General Airport Second Lien Revenue Refunding
Bonds, 1994 Series A, 6.375%, 1/01/15 1/05 at 102 Aaa 9,025,231
1,735,000 City of Chicago Sales Tax Revenue Bonds, Series 1997, 6.000%, 1/01/08 No Opt. Call Aaa 1,894,429
City of Chicago Tax Increment Allocation Bonds (Central Loop Redevelopment Project), Series 1997A:
6,000,000 5.250%, 6/01/06 No Opt. Call Aaa 6,219,600
12,250,000 5.250%, 6/01/07 No Opt. Call Aaa 12,697,248
14,815,000 The County of Cook, Illinois, General Obligation Bonds, Series 1992A, 6.500%, 11/15/22
(Pre-refunded to 11/15/02) 11/02 at 102 Aaa 16,369,834
30,000,000 The County of Cook, Illinois, General Obligation Bonds, Series 1992A, 6.600%, 11/15/22
(Pre-refunded to 11/15/02) 11/02 at 102 Aaa 33,271,200
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Illinois (continued)
$ 3,000,000 Community College District No. 508, Cook County, Illinois,
Certificates of Participation, 8.750%, 1/01/06 No Opt. Call Aaa $ 3,761,730
13,825,000 School District Number 46 Kane, Cook and DuPage Counties, Illinois (Elgin School District Number U-46),
School Bonds, Series 1997, 7.800%, 1/01/12 No Opt. Call Aaa 17,607,935
2,600,000 Community Unit School District Number 115 Kendall and Kane Counties, Illinois (Yorkville), School Bonds,
Series 1996, 7.000%, 1/01/07 No Opt. Call Aaa 2,995,564
4,035,000 Community Consolidated School District Number 41 (Lake Villa), Lake County, Illinois, General Obligation
School Bonds, Series 1997, 8.750%, 11/01/14 No Opt. Call Aaa 5,635,725
4,035,000 Community High School District No. 157 McHenry and Lake Counties, Illinois (Richmond-Burton), General
Obligation School Bonds, Series 1998, 9.000%, 12/01/17 (WI) No Opt. Call Aaa 5,827,710
9,100,000 Metropolitan Pier and Exposition Authority (Illinois), Dedicated State Tax Revenue Bonds (McCormick
Place Expansion), Series A, 6.500%, 6/15/07 (Pre-refunded to 6/15/03) 6/03 at 102 Aaa 10,121,748
Metropolitan Pier and Exposition Authority (Illinois), McCormick Place Expansion Project Bonds, Series 1992A:
6,335,000 6.500%, 6/15/22 (Pre-refunded to 6/15/03) 6/03 at 102 Aaa 7,046,294
165,000 6.500%, 6/15/22 6/03 at 102 Aaa 180,345
3,735,000 City of Peoria, City of Moline and City of Freeport, Illinois, Collateralized Single Family Mortgage Revenue
Bonds, Series 1995A, 7.600%, 4/01/27 (Alternative Minimum Tax) 10/05 at 105 AAA 4,233,884
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 3.0%
Indiana Health Facility Financing Authority Hospital Revenue Bonds, Series 1997A (Sisters of St. Francis
Health Services, Inc. Project):
2,170,000 5.500%, 11/01/06 No Opt. Call Aaa 2,282,753
2,005,000 5.500%, 11/01/07 No Opt. Call Aaa 2,111,085
2,220,000 Indiana Municipal Power Agency, Power Supply System Revenue Bonds,
1993 Series A, 6.125%, 1/01/19 1/03 at 102 Aaa 2,367,519
2,000,000 Indiana Transportation Finance Authority, Highway Revenue Refunding Bonds, Series 1996B,
6.000%, 12/01/06 No Opt. Call Aaa 2,187,780
1,000,000 Fort Wayne South Side School Building Corporation, First Mortgage Bonds, Series 1994, Allen County,
Indiana, 6.125%, 1/15/12 1/04 at 102 Aaa 1,079,080
2,930,000 New Albany-Floyd County School Building Corporation (Floyd County, Indiana), First Mortgage Bonds,
Series 1998, 5.250%, 7/15/08 (WI) No Opt. Call AAA 3,047,200
9,770,000 Northwest Allen Building Corporation First Mortgage Bonds, Series 1995
Allen County, Indiana, 5.500%, 6/01/15 6/05 at 102 Aaa 9,965,400
- ------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.7%
2,630,000 City of Olathe, Kansas and Labette County, Kansas, Collateralized Single Family Mortgage Refunding
Revenue Bonds, Series A-I, 8.100%, 8/01/23 (Alternative Minimum Tax) 2/05 at 105 Aaa 2,942,023
2,330,000 Sedwick County, Kansas and Shawnee County, Kansas, Collateralized Single Family Mortgage Refunding
Revenue Bonds, Series A-II, 8.050%, 5/01/24 (Alternative Minimum Tax) 11/04 at 105 Aaa 2,602,563
- ------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 0.7%
5,000,000 Louisiana State General Obligation Bonds, Series 1990, 7.000%, 9/01/09
(Pre-refunded to 9/01/00) 9/00 at 102 Aaa 5,409,900
- ------------------------------------------------------------------------------------------------------------------------------------
Maine - 0.3%
1,745,000 Maine Turnpike Authority, Turnpike Revenue Bonds, Series 1994,
7.500%, 7/01/09 No Opt. Call Aaa 2,161,374
- ------------------------------------------------------------------------------------------------------------------------------------
Maryland - 1.0%
7,225,000 Maryland Transportation Authority, Special Obligation Revenue Bonds, Baltimore/Washington
International Airport Projects, Series 1994-A (Qualified Airport Bonds), 6.400%, 7/01/19
(Alternative Minimum Tax) 7/04 at 102 Aaa 7,653,443
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 2.5%
5,000,000 Massachusetts Housing Finance Agency, Housing Project Revenue,
6.150%, 10/01/15 4/03 at 102 Aaa 5,255,050
8,495,000 Massachusetts Housing Finance Agency, Single Family Housing Revenue Bonds, Series 48,
6.350%, 6/01/26 (Alternative Minimum Tax) 6/06 at 102 Aaa 8,973,693
5,000,000 Massachusetts Housing Finance Authority, Single Family Housing Revenue Bonds, Series 53,
6.150%, 12/01/29 (Alternative Minimum Tax) 6/07 at 102 Aaa 5,254,100
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Michigan - 2.8%
$ 10,000,000 Michigan State Housing Development Authority, Rental Housing Revenue Bonds, 1997 Series A(AMT),
6.000%, 4/01/16 (Alternative Minimum Tax) 4/07 at 102 Aaa $ 10,514,900
10,000,000 County of Monroe, Michigan, Pollution Control Revenue Bonds (The Detroit Edison Company Project),
Series CC-1992, 6.550%, 9/01/24 (Alternative Minimum Tax) 9/03 at 103 Aaa 10,870,900
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 0.8%
4,425,000 Minnesota Housing Finance Agency, Rental Housing Bonds, 1995 Series D
(Non-AMT), 5.950%, 2/01/18 2/05 at 102 Aaa 4,598,814
1,880,000 Minnesota Housing Finance Agency, Single Family Mortgage Bonds,
1996 Series H, 6.000%, 1/01/21 1/06 at 102 AA 1,942,472
- ------------------------------------------------------------------------------------------------------------------------------------
Missouri - 3.0%
3,415,000 Health and Educational Facilities Authority of the State of Missouri, Health Facilities Revenue Bonds
(Health Midwest), Series 1992B, 6.250%, 2/15/22 2/02 at 102 Aaa 3,656,338
1,030,000 Missouri Housing Development Commission, Multifamily Housing Revenue Bonds (Brookstone Village
Apartments Project), 1996 Series A, 6.000%, 12/01/16
(Alternative Minimum Tax) 12/06 at 102 Aaa 1,073,373
1,000,000 The Industrial Development Authority of the City of Hazelwood, Missouri, Multifamily Housing Revenue
Refunding Bonds (GNMA Collateralized-The Lakes Apartments Project),
Series 1996A, 6.000%, 9/20/16 9/06 at 102 AAA 1,049,600
8,000,000 City of Kansas City, Missouri, General Improvement Airport Refunding Revenue Bonds, Series 1995,
6.750%, 9/01/09 9/05 at 101 Aaa 9,101,280
4,500,000 Land Clearance For Redevelopment Authority, of Kansas City, Missouri, Lease Revenue Bonds (Municipal
Auditorium and Muehlebach Hotel Redevelopment Projects), Series 1995A,
5.900%, 12/01/18 12/05 at 102 Aaa 4,761,945
1,000,000 Kansas City Municipal Assistance Corporation, Leasehold Revenue Capital Improvement Bonds (Kansas
City, Missouri, Lessee), Series 1996B, 5.750%, 1/15/14 1/06 at 101 Aaa 1,050,310
2,700,000 The Industrial Development Authority of the County of St. Louis, Missouri, Multifamily Housing Revenue
Refunding Bonds (GNMA Collateralized-South Summit Apartments Project), Series 1997A,
6.050%, 4/20/27 4/07 at 102 AAA 2,843,829
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada - 3.4%
2,905,000 Clark County, Nevada, General Obligation (Limited Tax) (Additionally Secured with Pledged Revenues),
Airport Bonds, Series June 1, 1991, 10.000%, 6/01/01 No Opt. Call Aaa 3,376,772
5,000,000 Clark County, Nevada, Industrial Development Revenue Bonds (Nevada Power Company Project),
Series 1992A, 6.700%, 6/01/22 (Alternative Minimum Tax) 6/02 at 102 Aaa 5,405,600
Clark County School District, Nevada, General Obligation
(Limited Tax), School Improvement Bonds, Series May 1, 1995A:
7,295,000 7.250%, 6/15/03 No Opt. Call Aaa 8,205,343
8,320,000 7.250%, 6/15/04 No Opt. Call Aaa 9,510,925
- ------------------------------------------------------------------------------------------------------------------------------------
New York - 6.8%
5,230,000 Dormitory Authority of the State of New York, Maimonides Medical Center, FHA Insured Mortgage Hospital
Revenue Bonds, Series 1996A, 5.750%, 8/01/14 2/06 at 102 Aaa 5,484,126
New York State Medical Care Facilities Finance Agency, New York
Hospital FHA Insured Mortgage Revenue Bonds, 1994 Series A
(AMBAC Insured Series):
3,000,000 6.750%, 8/15/14 (Pre-refunded to 2/15/05) 2/05 at 102 Aaa 3,434,370
2,500,000 6.800%, 8/15/24 (Pre-refunded to 2/15/05) 2/05 at 102 Aaa 2,868,600
6,150,000 New York State Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement
Revenue Bonds, 1995 Series C, 6.000%, 8/15/15 2/05 at 102 Aaa 6,560,144
3,000,000 New York State Thruway Authority, Highway and Bridge Trust Fund Bonds,
Series 1995B, 6.000%, 4/01/05 No Opt. Call Aaa 3,244,530
4,090,000 Metropolitan Transportation Authority Commuter Facilities Revenue Bonds,
Series 1994A, 8.000%, 7/01/07 No Opt. Call Aaa 5,044,402
4,985,000 Metropolitan Transportation Authority, Transit Facilities Revenue Bonds,
Series O, 8.000%, 7/01/07 No Opt. Call Aaa 6,148,250
5,000,000 Metropolitan Transportation Authority, Transit Facilities Revenue Bonds,
Series K, 6.300%, 7/01/06 No Opt. Call Aaa 5,526,450
4,000,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series E,
8.000%, 8/01/05 No Opt. Call Aaa 4,827,480
2,500,000 The City of New York General Obligation Bonds, Fiscal 1993
Series A, 5.750%, 8/01/10 8/02 at 101 1/2 Aaa 2,643,400
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York (continued)
$ 5,000,000 The City of New York General Obligation Bonds, Fiscal 1997 Series E,
6.000%, 8/01/08 8/06 at 101 1/2 Aaa $ 5,448,000
1,070,000 City of Niagara Falls, Niagara County, New York, Public Improvement (Serial) Bonds, 1994,
7.500%, 3/01/09 No Opt. Call Aaa 1,319,460
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio - 2.9%
5,500,000 Ohio Air Quality Development Authority, State of Ohio, Collateralized Pollution Control Revenue Refunding
Bonds, Series 1992 (The Cleveland Electric Illuminating Company Project),
8.000%, 12/01/13 6/02 at 103 Aaa 6,288,260
5,805,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities
Program), 1989 Series A, 7.650%, 3/01/29 (Alternative Minimum Tax) 9/99 at 102 AAA 6,093,683
2,000,000 City of Cleveland, Ohio, Waterworks Improvements First Mortgage Revenue Bonds, Series F, 1992,
6.250%, 1/01/15 1/02 at 102 Aaa 2,145,360
5,000,000 Fairfield City School District, County of Butler, Ohio, School Improvement Bonds, Series 1995,
6.000%, 12/01/20 12/05 at 100 Aaa 5,279,900
2,250,000 Hamilton County, Ohio, Sewer System Improvement and Refunding Revenue Bonds, 1993 Series A (The
Metropolitan Sewer District of Greater Cincinnati), 5.450%, 12/01/09 No Opt. Call Aaa 2,398,298
- ------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 2.1%
8,425,000 McGee Creek Authority Water Revenue Bonds, Series 1992 (Oklahoma),
6.000%, 1/01/23 No Opt. Call Aaa 9,367,673
6,000,000 Norman Regional Hospital Authority (Norman, Oklahoma), Hospital Revenue Bonds, Series 1991,
6.900%, 9/01/21 (Pre-refunded to 9/01/01) 9/01 at 102 Aaa 6,586,260
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 4.7%
3,810,000 Allegheny County Residential Finance Authority Single Family Mortgage Revenue Bonds, 1996 Series AA,
6.450%, 5/01/28 (Alternative Minimum Tax) 11/06 at 102 Aaa 4,027,322
6,000,000 Cambria County Industrial Development Authority (Pennsylvania), Pollution Control Revenue Refunding
Bonds, 1995 Series A (Pennsylvania Electric Company Project),
5.800%, 11/01/20 11/05 at 102 Aaa 6,262,680
4,750,000 Lehigh County Industrial Development Authority, Pollution Control Revenue Refunding Bonds, 1992 Series A
(Pennsylvania Power and Light Company Project), 6.400%, 11/01/21 11/02 at 102 Aaa 5,165,483
1,000,000 Luzerne County Industrial Development Authority, Exempt Facilities Revenue Refunding Bonds, 1994 Series A
(Pennsylvania Gas and Water Company Project), 7.000%, 12/01/17
(Alternative Minimum Tax) 12/04 at 102 Aaa 1,126,650
2,680,000 The School District of Philadelphia, Pennsylvania, General Obligation Refunding Bonds, Series A of 1995,
6.250%, 9/01/08 No Opt. Call Aaa 2,988,897
5,000,000 Pittsburgh General Obligation Refunding Bonds, Series A, 5.000%, 3/01/02 No Opt. Call Aaa 5,106,300
University of Pittsburgh, Commonwealth of Higher Education Capital Projects, Series 1992-A:
1,395,000 6.125%, 6/01/21 (Pre-refunded to 6/01/02) 6/02 at 102 Aaa 1,511,873
4,105,000 6.125%, 6/01/21 6/02 at 102 Aaa 4,399,000
5,750,000 York County Solid Waste and Refuse Authority (Commonwealth of Pennsylvania), Solid Waste System
Refunding Revenue Bonds (County Guaranteed), Series of 1997,
5.500%, 12/01/07 No Opt. Call Aaa 6,096,898
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 0.9%
6,500,000 Piedmont Municipal Power Agency (South Carolina), Electric Revenue Bonds, 1992 Refunding Series,
6.300%, 1/01/22 (Pre-refunded to 1/01/03) 1/03 at 102 Aaa 7,137,715
- ------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.2%
1,500,000 Knoxville's Community Development Corporation, Multifamily Mortgage Revenue Bonds (GNMA
Mortgage-Backed Security Program-Morningside Gardens Project),
Series 1993, 6.200%, 7/20/28 7/03 at 101 AAA 1,560,330
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 3.7%
State of Texas, Veterans' Housing Assistance Bonds, Series 1993, General Obligation Bonds:
8,650,000 6.800%, 12/01/23 (Alternative Minimum Tax) 12/03 at 102 Aaa 9,307,400
1,730,000 6.800%, 12/01/23 (Alternative Minimum Tax) 12/03 at 102 AA 1,857,155
16,900,000 Tarrant County Water Control and Improvement District Number One, (Tarrant County, Texas), Water
Revenue Refunding and Improvement Bonds,Series 1992, 5.750%, 3/01/13
(Pre-refunded to 3/01/01) 3/01 at 100 Aaa 17,590,196
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Utah - 0.5%
$ 3,600,000 State Board of Regents of the State of Utah, Student Loan Revenue Bonds, Series 1993B,
5.900%, 11/01/13 (Alternative Minimum Tax) 11/03 at 102 Aaa $ 3,716,568
- ------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.3%
2,250,000 Virginia Housing Development Authority, Multifamily Housing Revenue Bonds, Series B, 6.050%, 5/01/17
(Alternative Minimum Tax) 5/08 at 102 Aaa 2,351,385
- ------------------------------------------------------------------------------------------------------------------------------------
Washington - 7.5%
6,130,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1992, (Swedish Hospital Medical
Center, Seattle), 6.300%, 11/15/22 (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 6,605,136
8,100,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1992 (Virginia Mason Obligated Group,
Seattle), 6.300%, 2/15/17 2/03 at 102 Aaa 8,714,061
3,750,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding Revenue Bonds, Series 1993B,
5.600%, 7/01/15 7/03 at 102 Aaa 3,821,438
10,500,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding Revenue Bonds, Series 1996-A,
(Bonneville Power Administration), 5.750%, 7/01/11 7/06 at 102 Aaa 11,095,245
5,535,000 Washington Public Power Supply System, Nuclear Project No. 3, Refunding Revenue Bonds, Series 1989A,
6.000%, 7/01/18 (Pre-refunded to 7/01/99) 7/99 at 100 Aaa 5,668,504
6,295,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds, Series 1993B,
5.600%, 7/01/17 7/03 at 102 Aaa 6,386,781
5,700,000 Benton County Public Utility District #1, Electric Revenue and Refunding Bonds, Series 1991,
6.750%, 11/01/11 (Pre-refunded to 11/01/01) 11/01 at 102 Aaa 6,260,594
4,340,000 City of Tacoma, Washington, Sewer Revenue Refunding Bonds, 1994 Series B,
8.000%, 12/01/07 No Opt. Call Aaa 5,427,212
2,500,000 City of Tacoma, Washington, Sewer Revenue Bonds, 1995 Series B,
6.375%, 12/01/15 12/05 at 100 Aaa 2,709,750
1,465,000 Yakima School District No. 7, Yakima County, Washington, Unlimited Tax General Obligation Bonds,
1995, 6.250%, 12/01/07 No Opt. Call Aaa 1,610,386
- ------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 2.8%
20,000,000 The County Commission of Pleasants County, West Virginia, Pollution Control Revenue Bonds (Monongahela
Power Company Pleasants Station Project), 1995 Series C, 6.150%, 5/01/15 5/05 at 102 Aaa 21,590,800
- ------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 1.0%
2,000,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Series 1992 (Children's Hospital
of Wisconsin, Inc. Project), 6.500%, 8/15/10 8/02 at 102 Aaa 2,161,120
5,000,000 Wisconsin Health and Educational Facilities Authority Revenue Bonds, Series 1995 (Mercy Health System
Corporation), 6.125%, 8/15/13 8/05 at 102 Aaa 5,382,750
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 2.0%
13,000,000 Puerto Rico Electric Power Authority, 7.000%, 7/01/07 No Opt. Call Aaa 15,301,000
- ------------------------------------------------------------------------------------------------------------------------------------
$ 699,510,000 Total Investments - (cost $729,754,457) - 98.2% 762,201,042
=============
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Temporary Investments in Short-Term Municipal Securities - 1.0%
$ 650,000 Allegheny County Hospital Development Authority (Presbyterian-University Health System), Variable
Rate Demand Bonds, 4.100%, 3/01/18+ VMIG-1 $ 650,000
4,900,000 Delaware County Industrial Development Authority, Airport Facility (UPS), Variable Rate Demand Bonds,
4.150%, 12/01/15+ A-1+ 4,900,000
1,800,000 New Jersey Economic Development Authority, Series 1998 Economic Development Refunding Bonds
(New Jersey Foreign Trade Zone Venture), Variable Rate Demand Bonds, 3.800%, 12/01/07+ A-1+ 1,800,000
400,000 Sabine River Authority of Texas, Collateralized Pollution Control, Variable Rate Demand Bonds (Texas
Utilities Electric Company), 4.350%, 4/01/30 (Alternative Minimum Tax)+ A-1+ 400,000
- ------------------------------------------------------------------------------------------------------------------------------------
$ 7,750,000 Total Temporary Investments - 1.0% 7,750,000
=============
Other Assets Less Liabilities - 0.8% 5,849,156
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 775,800,198
====================================================================================================================
All of the bonds in the portfolio, excluding temporary investments in
short-term municipal securities, are either covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or
trust containing sufficient U.S. government or U.S. government agency
securities, any of which ensure the timely payment of principal and interest.
* Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions at
varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
(WI) Security purchased on a when-issued basis (note 1).
+ The security has a maturity of more than one year, but has variable
rate and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Net Assets
April 30, 1998
(Unaudited)
<CAPTION>
Insured Insured Premier Insured
Quality Opportunity Insured Income Premium Income 2
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investments in municipal securities,
at market value (note 1) $833,622,285 $1,830,281,064 $433,966,063 $762,201,042
Temporary investments in short-term municipal securities,
at amortized cost, which approximates
market value (note 1) 1,000,000 1,500,000 1,800,000 7,750,000
Cash 988,016 1,625,519 63,606 39,859
Receivables:
Interest 15,548,931 36,499,032 7,878,581 15,773,426
Investments sold 7,846,166 6,905,516 226,145 3,829,028
Other assets 48,563 138,699 25,941 56,648
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 859,053,961 1,876,949,830 443,960,336 789,650,003
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
Payable for investments purchased 7,705,451 9,866,550 -- 10,625,097
Accrued expenses:
Management fees (note 6) 438,448 941,296 232,326 402,364
Other 352,260 615,871 128,680 465,830
Preferred share dividends payable 302,551 258,015 85,116 103,552
Common share dividends payable 2,992,065 6,583,835 1,496,683 2,252,962
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 11,790,775 18,265,567 1,942,805 13,849,805
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets (note 7) $847,263,186 $1,858,684,263 $442,017,531 $775,800,198
====================================================================================================================================
Preferred shares, at liquidation value $260,000,000 $ 600,000,000 $140,000,000 $268,900,000
====================================================================================================================================
Preferred shares outstanding 10,400 24,000 5,600 10,756
====================================================================================================================================
Common shares outstanding 37,636,042 80,290,670 19,188,247 37,239,037
====================================================================================================================================
Net asset value per Common share outstanding (net assets
less Preferred shares at liquidation value, divided
by Common shares outstanding) $ 15.60 $ 15.68 $ 15.74 $ 13.61
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
Six Months Ended April 30, 1998
(Unaudited)
<CAPTION>
Insured Insured Premier Insured
Quality Opportunity Insured Income Premium Income 2
<S> <C> <C> <C> <C>
Investment Income (note 1) $25,829,622 $55,966,290 $12,977,610 $20,899,800
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 6) 2,649,837 5,690,169 1,403,679 2,431,329
Preferred shares - auction fees 306,212 743,836 173,561 333,362
Preferred shares - dividend disbursing agent fees 17,356 29,753 9,917 24,795
Shareholders' servicing agent fees and expenses 61,277 96,381 24,264 35,707
Custodian's fees and expenses 54,144 103,312 35,318 52,630
Directors'/Trustees' fees and expenses (note 6) 3,811 8,370 1,992 3,482
Professional fees 10,735 12,422 10,039 10,852
Shareholders' reports - printing and mailing expenses 80,511 177,079 43,401 79,574
Stock exchange listing fees 16,239 33,724 12,031 16,140
Portfolio insurance expense 60,887 125,050 -- 13,756
Investor relations expense 35,981 74,249 17,769 30,446
Other expenses 20,090 41,259 13,355 19,699
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses 3,317,080 7,135,604 1,745,326 3,051,772
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income 22,512,542 48,830,686 11,232,284 17,848,028
- -----------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain from investment transactions
(notes 1 and 4) 5,374,083 4,117,457 40,793 4,469,184
Net change in unrealized appreciation or
depreciation of investments (7,637,482) (11,364,533) (1,448,855) (3,269,163)
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (2,263,399) (7,247,076) (1,408,062) 1,200,021
===================================================================================================================================
Net increase in net assets from operations $20,249,143 $41,583,610 $ 9,824,222 $19,048,049
===================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Changes in Net Assets
(Unaudited)
<CAPTION>
Insured Quality Insured Opportunity
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
4/30/98 10/31/97 4/30/98 10/31/97
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 22,512,542 $ 45,571,378 $ 48,830,686 $ 98,183,669
Net realized gain (loss) from investment transactions
(notes 1 and 4) 5,374,083 448,311 4,117,457 (765,609)
Net change in unrealized appreciation or
depreciation of investments (7,637,482) 10,103,347 (11,364,533) 23,097,394
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 20,249,143 56,123,036 41,583,610 120,515,454
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (18,002,711) (36,606,433) (39,427,040) (78,482,463)
Preferred shareholders (4,873,992) (9,532,872) (10,285,063) (20,702,910)
From accumulated net realized gains from investment transactions:
Common shareholders (375,408) (2,596,924) -- (1,903,809)
Preferred shareholders (19,266) (659,152) -- (488,200)
- -----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (23,271,377) (49,395,381) (49,712,103) (101,577,382)
- -----------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (note 2)
Net proceeds from Common shares issued to shareholders due to
reinvestment of distributions 1,923,642 2,330,125 5,042,139 5,101,250
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (1,098,592) 9,057,780 (3,086,354) 24,039,322
Net assets at beginning of period 848,361,778 839,303,998 1,861,770,617 1,837,731,295
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $847,263,186 $848,361,778 $1,858,684,263 $1,861,770,617
===================================================================================================================================
Balance of undistributed net investment income at
end of period $ 384,590 $ 748,751 $ 1,252,580 $ 2,133,997
===================================================================================================================================
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
Statement of Changes in Net Assets (continued)
(Unaudited)
<CAPTION>
Premier Insured Income Insured Premium Income 2
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
4/30/98 10/31/97 4/30/98 10/31/97
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 11,232,284 $ 22,687,584 $ 17,848,028 $ 37,191,148
Net realized gain (loss) from investment transactions
(notes 1 and 4) 40,793 647,328 4,469,184 6,081,917
Net change in unrealized appreciation or
depreciation of investments (1,448,855) 6,330,640 (3,269,163) 14,037,201
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 9,824,222 29,665,552 19,048,049 57,310,266
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (8,971,988) (17,900,403) (13,832,031) (27,035,440)
Preferred shareholders (2,369,772) (4,895,368) (4,629,040) (9,390,887)
From accumulated net realized gains from
investment transactions:
Common shareholders (400,607) -- -- --
Preferred shareholders (110,068) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (11,852,435) (22,795,771) (18,461,071) (36,426,327)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (note 2)
Net proceeds from Common shares issued to shareholders due to
reinvestment of distributions 872,626 168,892 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (1,155,587) 7,038,673 586,978 20,883,939
Net assets at beginning of period 443,173,118 436,134,445 775,213,220 754,329,281
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $442,017,531 $443,173,118 $775,800,198 $775,213,220
====================================================================================================================================
Balance of undistributed net investment income at
end of period $ 395,832 $ 505,308 $ 1,160,106 $ 1,773,149
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to Financial Statements
(Unaudited)
1. General Information and Significant Accounting Policies
The National Funds (the "Funds") covered in this report and their corresponding
New York Stock Exchange symbols are Nuveen Insured Quality Municipal Fund, Inc.
(NQI), Nuveen Insured Municipal Opportunity Fund, Inc. (NIO), Nuveen Premier
Insured Municipal Income Fund, Inc. (NIF) and Nuveen Insured Premium Income
Municipal Fund 2 (NPX).
Each Fund invests primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities. The Funds are registered under
the Investment Company Act of 1940 as closed-end, diversified management
investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/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
April 30, 1998, Insured Opportunity and Insured Premium Income 2 had outstanding
when-issued and delayed delivery purchase commitments of $9,866,550 and
$10,625,097, respectively. There were no such outstanding purchase commitments
in either of the other Funds.
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
when required for federal income tax purposes.
Federal 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 to 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 tax, to retain such
tax-exempt status when distributed to shareholders of the Funds. Net realized
capital gain and market discount distributions are subject to federal taxation.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared as a dividend monthly and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of distributions are determined in accordance with federal
income tax regulations, which may differ from generally accepted accounting
principles. Accordingly, temporary over-distributions as a result of these
differences may occur and will be classified as either distributions in excess
of net investment income, distributions in excess of net realized gains and/or
distributions in excess of net ordinary taxable income from investment
transactions, where applicable.
<PAGE>
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in more than one Series. The dividend
rate on each Series may change every seven days, as set by the auction agent,
except for Insured Quality Series F which has lengthened its current dividend
period from seven days to five years. The number of Preferred shares
outstanding, by Series and in total, at April 30, 1998, is as follows:
<TABLE>
<CAPTION>
Premier Insured
Insured Insured Insured Premium
Quality Opportunity Income Income 2
<S> <C> <C> <C> <C>
Number of Shares:
Series M 2,600 4,000 -- 2,080
Series T 2,600 4,000 -- 2,200
Series W 2,600 4,000 -- 2,080
Series Th -- 4,000 2,800 2,200
Series Th2 -- 4,000 -- --
Series F 2,600 4,000 2,800 2,196
- ---------------------------------------------------------------------------------------------------------
Total 10,400 24,000 5,600 10,756
=========================================================================================================
</TABLE>
Insurance
The Funds invest 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 Funds' shares. Original Issue Insurance and Secondary Market
Insurance remain in effect as long as the municipal securities covered thereby
remain outstanding and the insurer remains in business, regardless of whether
the Funds ultimately dispose of such municipal securities. Consequently, the
market value of the municipal securities covered by Original Issue Insurance or
Secondary Market Insurance may reflect value attributable to the insurance.
Portfolio Insurance is effective only while the municipal securities are held by
the Funds. Accordingly, neither the prices used in determining the market value
of the underlying municipal securities nor the net asset value of the Funds'
shares include value, if any, attributable to the Portfolio Insurance. Each
policy of the Portfolio Insurance does, however, give the Funds 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 certain derivative financial instruments including
futures, forward, swap, option contracts, and other financial instruments with
similar characteristics. Although the Funds are authorized to invest in such
financial instruments, and may do so in the future, they did not make any such
investments during the six months ended April 30, 1998.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets from operations during the reporting period.
2. Fund Shares
Transactions in Common shares were as follows:
<TABLE>
<CAPTION>
Insured Quality Insured Opportunity
Six Months Ended Year Ended Six Months Ended Year Ended
4/30/98 10/31/97 4/30/98 10/31/97
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment
of distributions 119,244 150,998 309,396 324,092
==============================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Premier Insured Income Insured Premium Income 2
Six Months Ended Year Ended Six Months Ended Year Ended
4/30/98 10/31/97 4/30/98 10/31/97
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment
of distributions 54,102 10,669 -- --
==============================================================================================================
</TABLE>
3. Distributions to Common Shareholders
On May 1, 1998, the Funds declared Common share dividend distributions from
their tax-exempt net investment income which were paid on June 1, 1998, to
shareholders of record on May 15, 1998, as follows:
<TABLE>
<CAPTION>
Premier Insured
Insured Insured Insured Premium
Quality Opportunity Income Income 2
<S> <C> <C> <C> <C>
Dividend per share $.0765 $.0790 $.0780 $.0605
=========================================================================================================
</TABLE>
4. Securities Transactions
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments for the six months ended April
30, 1998, were as follows:
<TABLE>
<CAPTION>
Premier Insured
Insured Insured Insured Premium
Quality Opportunity Income Income 2
<S> <C> <C> <C> <C>
Purchases:
Investments in municipal securities $88,616,361 $138,142,369 $23,335,308 $122,003,884
Temporary municipal investments 47,300,000 84,500,000 14,600,000 76,650,000
Sales and Maturities:
Investments in municipal securities 89,922,486 131,097,767 25,401,740 109,229,056
Temporary municipal investments 49,200,000 84,400,000 12,800,000 68,900,000
=========================================================================================================
</TABLE>
At April 30, 1998, the identified cost of investments owned for federal income
tax purposes was the same as the cost for financial reporting purposes for each
Fund.
At October 31, 1997, the Funds' last fiscal year end, the following Funds had
unused capital loss carryforwards available for federal income tax purposes to
be applied against future capital gains, if any. If not applied, the
carryforwards will expire as follows:
<TABLE>
<CAPTION>
Insured
Insured Premium
Opportunity Income 2
<S> <C> <C>
Expiration year:
2002 $ -- $ 7,224,963
2003 -- 12,029,555
2004 -- 2,080,786
2005 765,609 --
- ---------------------------------------------------------------------------------------------------------
Total $765,609 $21,335,304
=========================================================================================================
</TABLE>
5. Unrealized Appreciation (Depreciation)
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 1998, were as follows:
<TABLE>
<CAPTION>
Premier Insured
Insured Insured Insured Premium
Quality Opportunity Income Income 2
<S> <C> <C> <C> <C>
Gross unrealized:
appreciation $57,153,823 $137,970,763 $35,403,755 $33,284,112
depreciation (748,246) (794,018) (67,990) (837,527)
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation $56,405,577 $137,176,745 $35,335,765 $32,446,585
=========================================================================================================
</TABLE>
<PAGE>
6. Management Fee and Other Transactions with Affiliates
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net asset value of each Fund:
<TABLE>
<CAPTION>
Average Daily Net Asset Value Management Fee
- ------------------------------------------------------------------------------------------------------------
<S> <C>
For the first $125 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 Directors/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
7. Composition of Net Assets At April 30, 1998, net assets consisted of:
<TABLE>
<CAPTION>
Premier Insured
Insured Insured Insured Premium
Quality Opportunity Income Income 2
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $260,000,000 $ 600,000,000 $140,000,000 $268,900,000
Common shares, $.01 par value per share 376,360 802,907 191,882 372,390
Paid-in surplus 524,671,492 1,116,100,183 266,053,770 489,883,197
Balance of undistributed net investment income 384,590 1,252,580 395,832 1,160,106
Accumulated net realized gain (loss) from
investment transactions 5,425,167 3,351,848 40,282 (16,962,080)
Net unrealized appreciation of investments 56,405,577 137,176,745 35,335,765 32,446,585
- ----------------------------------------------------------------------------------------------------------------
Net assets $847,263,186 $1,858,684,263 $442,017,531 $775,800,198
================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 Unlimited
Preferred 1,000,000 1,000,000 1,000,000 Unlimited
================================================================================================================
</TABLE>
<PAGE>
8. Investment Composition
At April 30, 1998, the revenue sources by municipal purpose, expressed as a
percent of total investments, were as follows:
<TABLE>
<CAPTION>
Premier Insured
Insured Insured Insured Premium
Quality Opportunity Income Income 2
<S> <C> <C> <C> <C>
Education and Civic Organizations 2% 1% 1% 1%
Health Care 21 15 13 7
Housing/Multi Family 4 3 6 10
Housing/Single Family 14 13 5 6
Tax Obligation/General 6 4 6 20
Tax Obligation/Limited 8 6 10 11
Transportation 5 5 3 8
U.S. Guaranteed 24 33 39 19
Utilities 15 15 16 15
Water and Sewer 1 5 1 3
- -------------------------------------------------------------------------------------------------------
100% 100% 100% 100%
=======================================================================================================
</TABLE>
All of the long-term and intermediate-term investments owned by the Funds are
either covered by insurance issued by several private insurers or are backed by
an escrow or trust containing U.S. government or U.S. government agency
securities, both of which ensure the timely payment of principal and interest in
the event of default. Such insurance or escrow, however, does not guarantee the
market value of the municipal securities or the value of any of the Funds'
shares.
All of the temporary investments in short-term municipal securities have credit
enhancements (letters of credit, guarantees or insurance) issued by third party
domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
<PAGE>
<TABLE>
Financial Highlights
(Unaudited)
Selected data for a Common share outstanding throughout each period is
as follows:
<CAPTION>
Investment Operations Less Distributions
Net Net
Net Realized/ Investment Investment Capital Capital
Beginning Net Unrealized Income Income Gains Gains
Net Asset Investment Investment To Common To Preferred To Common To Preferred
Value Income Gain (Loss) Total Shareholders Shareholders+ Shareholders Shareholders+ Total
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Insured Quality
Six Months Ended
4/30/98 $15.68 $ .60 $ (.06) $ .54 $ (.48) $(.13) $(.01) $ -- $ (.62)
Year Ended 10/31:
1997 15.50 1.22 .28 1.50 (.98) (.25) (.07) (.02) (1.32)
1996 15.79 1.24 (.12) 1.12 (.98) (.25) (.14) (.04) (1.41)
1995 14.50 1.27 1.32 2.59 (1.01) (.29) -- -- (1.30)
1994 16.58 1.27 (2.04) (.77) (1.04) (.26) (.01) -- (1.31)
1993 15.11 1.32 1.57 2.89 (1.19) (.21) (.02) -- (1.42)
<CAPTION>
Insured Opportunity
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Six Months Ended
4/30/98 15.78 .61 (.09) .52 (.49) (.13) -- -- (.62)
Year Ended 10/31:
1997 15.54 1.23 .28 1.51 (.98) (.26) (.02) (.01) (1.27)
1996 15.60 1.24 .02 1.26 (.98) (.26) (.06) (.02) (1.32)
1995 14.04 1.25 1.60 2.85 (.98) (.31) -- -- (1.29)
1994 16.24 1.24 (2.18) (.94) (1.00) (.25) (.01) -- (1.26)
1993 14.40 1.24 1.90 3.14 (1.04) (.23) (.02) (.01) (1.30)
<CAPTION>
Premier Insured Income
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Six Months Ended
4/30/98 15.84 .59 (.07) .52 (.47) (.12) (.02) (.01) (.62)
Year Ended 10/31:
1997 15.49 1.19 .36 1.55 (.94) (.26) -- -- (1.20)
1996 15.53 1.19 (.03) 1.16 (.94) (.26) -- -- (1.20)
1995 14.05 1.20 1.51 2.71 (.94) (.29) -- -- (1.23)
1994 16.28 1.19 (2.21) (1.02) (.96) (.25) -- -- (1.21)
1993 14.03 1.20 2.24 3.44 (.98) (.21) -- -- (1.19)
<CAPTION>
Insured Premium
Income 2
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Six Months Ended
4/30/98 13.60 .47 .03 .50 (.37) (.12) -- -- (.49)
Year Ended 10/31:
1997 13.04 1.00 .54 1.54 (.73) (.25) -- -- (.98)
1996 13.03 .99 -- .99 (.71) (.27) -- -- (.98)
1995 10.99 1.00 2.08 3.08 (.75) (.29) -- -- (1.04)
1994 14.29 .98 (3.16) (2.18) (.78) (.20) -- -- (.98)
7/22/93 to
10/31/93 14.05 .11 .23 .34 (.06) -- -- -- (.06)
<PAGE>
<CAPTION>
Total Returns
Organization and
Offering Costs and
Preferred Share Ending
Underwriting Net Asset Ending Based on Based on Net
Discounts Value Market Value Market Value** Asset Value**
<CAPTION>
Insured Quality
<S> <C> <C> <C> <C> <C>
Six Months Ended
4/30/98 $ -- $15.60 $15.4375 1.84% 2.59%
Year Ended 10/31:
1997 -- 15.68 15.6250 10.57 8.22
1996 -- 15.50 15.1250 8.54 5.49
1995 -- 15.79 15.0000 22.62 16.43
1994 -- 14.50 13.1250 (19.13) (6.43)
1993 -- 16.58 17.3750 22.55 18.34
<CAPTION>
Insured Opportunity
<S> <C> <C> <C> <C> <C>
Six Months Ended
4/30/98 -- 15.68 15.9375 4.30 2.49
Year Ended 10/31:
1997 -- 15.78 15.7500 10.18 8.32
1996 -- 15.54 15.2500 9.77 6.50
1995 -- 15.60 14.8750 22.78 18.74
1994 -- 14.04 13.0000 (13.60) (7.59)
1993 -- 16.24 16.1250 23.41 20.75
<CAPTION>
Premier Insured Income
<S> <C> <C> <C> <C> <C>
Six Months Ended
4/30/98 -- 15.74 15.6250 2.68 2.46
Year Ended 10/31:
1997 -- 15.84 15.6875 12.09 8.56
1996 -- 15.49 14.8750 9.23 5.93
1995 -- 15.53 14.5000 24.14 17.73
1994 -- 14.05 12.5000 (14.53) (8.06)
1993 -- 16.28 15.6250 19.03 23.67
<CAPTION>
Insured Premium Income 2
<S> <C> <C> <C> <C> <C>
Six Months Ended
4/30/98 -- 13.61 12.6250 4.42 2.79
Year Ended 10/31:
1997 -- 13.60 12.4375 15.45 10.15
1996 -- 13.04 11.4380 6.95 5.70
1995 -- 13.03 11.3750 23.46 26.20
1994 (.14) 10.99 9.8750 (23.99) (18.24)
7/22/93 to
10/31/93 (.04) 14.29 13.8750 (7.08) 2.16
<PAGE>
<CAPTION>
Ratios/Supplemental Data
Ratio of Net
Ratio of Investment
Ending Expenses to Income to Portfolio
Net Assets Average Average Turnover
(000) Net Assets++ Net Assets++ Rate
<S> <C> <C> <C> <C>
Insured Quality
Six Months Ended
4/30/98 $ 847,263 .78%* 5.31%* 11%
Year Ended 10/31:
1997 848,362 .79 5.44 8
1996 839,304 .80 5.50 33
1995 849,583 .81 5.73 30
1994 801,482 .82 5.64 22
1993 876,821 .80 5.76 7
<CAPTION>
Insured Opportunity
<S> <C> <C> <C> <C>
Six Months Ended
4/30/98 1,858,684 .77* 5.26* 7
Year Ended 10/31:
1997 1,861,771 .78 5.34 8
1996 1,837,731 .78 5.38 18
1995 1,841,780 .79 5.59 16
1994 1,717,023 .79 5.44 20
1993 1,892,814 .81 5.36 5
<CAPTION>
Premier Insured Income
<S> <C> <C> <C> <C>
Six Months Ended
4/30/98 442,018 .79* 5.09* 5
Year Ended 10/31:
1997 443,173 .80 5.18 4
1996 436,134 .80 5.22 3
1995 436,920 .81 5.40 5
1994 408,690 .81 5.30 4
1993 451,289 .81 5.31 9
<CAPTION>
Insured Premium Income 2
<S> <C> <C> <C> <C>
Six Months Ended
4/30/98 775,800 .79* 4.60* 14
Year Ended 10/31:
1997 775,213 .80 4.89 37
1996 754,329 .86 4.78 32
1995 427,908 .83 5.07 30
1994 385,692 .83 4.83 25
7/22/93 to
10/31/93 295,074 .86* 3.16* --
* Annualized.
** Total Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes
in stock price per share. Total Return on Net Asset Value is the combination
of reinvested dividend income, reinvested capital gains distributions, if
any, and changes in net asset value per share. Total returns are not
annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
</TABLE>
Building Better Portfolios with Nuveen
Nuveen Family of Mutual Funds
Nuveen offers a variety of funds designed to help you reach your financial
goals.
Growth Funds
Nuveen Rittenhouse
Growth Fund
Growth and
Income Funds
European Value Fund
Growth and
Income Stock Fund
Balanced Municipal
and Stock Fund
Balanced Stock
and Bond Fund
Municipal
Bond Funds
National Funds
Long-Term
Insured
Intermediate-Term
Limited Term
State Funds
Alabama
Arizona
California
Colorado
Connecticut
Florida
Georgia
Kansas
Kentucky
Louisiana
Maryland
Massachusetts
Michigan
Missouri
New Jersey
New Mexico
New York
North Carolina
Ohio
Pennsylvania
South Carolina
Tennessee
Virginia
Wisconsin
Reducing the impact of taxes and moderating risk are important goals for many
risk-sensitive investors seeking to build better portfolios. For these
investors, a tax-efficient, risk-resistant investment portfolio often forms the
foundation of a carefully crafted financial plan for building and sustaining
wealth. Nuveen is committed to providing investors and their financial advisers
with a range of products and investment tools to help build better portfolios.
EXCHANGE-TRADED FUNDS
Nuveen Exchange-Traded Funds offer investors actively managed portfolios of
investment-grade quality municipal bonds. The fund shares are listed and traded
on the New York and American stock exchanges. Exchange-traded funds provide the
investment convenience, price visibility and liquidity of common stocks.
MUTUAL FUNDS
Nuveen Mutual Funds offer investors access to the Nuveen family of
Premier Advisers(sm), including Nuveen Advisory Corp., Institutional Capital
Corp. and Rittenhouse Financial Services. Our equity, balanced and income funds
seek to provide consistent performance, time-tested strategies to reduce risk
and experienced, professional management.
PRIVATE ASSET MANAGEMENT
Rittenhouse Financial Services and Nuveen Asset Management offer comprehen-sive,
customized investment management solutions to investors with assets of $250,000
or more to invest. A range of actively managed growth, balanced and municipal
income-oriented portfolios are available, all based upon a disciplined
investment philosophy.
UNIT TRUSTS
Nuveen Unit Trusts are fixed portfolios of quality securities that are a
convenient, attractive alternative to purchasing individual securities. They
provide low-cost diversification to reduce risk, experienced, professional
security selection and surveillance and daily liquidity at that day's net asset
value for quick access to your assets.
MUNIPREFERRED(R)
Nuveen MuniPreferred offers investors a AAA-rated investment with an attractive
tax-free yield for the cash reserves portion of an investment portfolio.
MuniPreferred shares are backed 2-to-1 by the long-term portfolios of Nuveen
dual-class exchange-traded funds and are available for national as well as a
wide variety of state-specific portfolios.
<PAGE>
Fund Information
Board of Trustees
Robert P. Bremner
Lawrence H. Brown
Anthony T. Dean
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Fund Manager
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
Custodian, Transfer Agent
and Shareholder Services
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
Legal Counsel
Fried, Frank, Harris,
Shriver & Jacobson
Washington, D.C.
Independent Auditors
Ernst & Young LLP
Chicago, IL
Year 2000
The concern that computer systems may have problems processing date-related
information in the year 2000 and beyond has challenged businesses and
organizations to review thoroughly all aspects of their operations. We have
undertaken just such an approach at Nuveen in preparation for the new
millennium. Over the last 10 years, our trading, fund management and pricing
systems at Nuveen - the systems that directly effect our investors and their
financial advisers - have been updated or replaced to address the Year 2000
concerns. We continue to work closely with our transfer agent, custodian and
other service partners to monitor readiness and address other remaining systems
issues. Our initial testing indicates we are on schedule and we have targeted
year-end 1998 to complete verification of vendor compliance and service partner
readiness. However, we can give no complete assurance at this time that the
steps we have taken will be sufficient to prevent any problems that would impact
the Nuveen Exchange-Traded Funds.
Each fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 12-month period ended April 30, 1998. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
Serving Investors for Generations
Photo of: John Nuveen, Sr.
Since our founding in 1898, John Nuveen &Co. has been synonymous with
investments that withstand the test of time. Today, we offer a broad range of
investments designed for risk-sensitive individuals seeking to build and sustain
wealth. In fact, more than 1.3 million investors have trusted Nuveen to help
them maintain the lifestyle they currently enjoy.
The cornerstone of Nuveen's investment philosophy is a commitment to disciplined
long-term investment strategies focused on providing consistent, attractive
performance over time - with moderated risk. We emphasize quality securities
carefully chosen through in-depth research, and we follow those securities
closely over time to ensure that they continue to meet our exacting standards.
Whether your focus is long-term growth, dependable
current income or sustaining accumulated wealth, Nuveen offers a wide variety of
products and services to help meet your unique circumstances and financial
planning needs. Our equity, balanced, and income funds, along with our unit
trusts and private asset management, can form the foundation of a tax-efficient
and risk-resistant portfolio.
Talk with your financial adviser to learn more about how Nuveen investment
products and services can help you build and sustain your long-term financial
security. Or call us at (800) 257-8787 for more information, including a
prospectus where applicable. Please read that information carefully before you
invest.
Graphic:
NUVEEN
1898 1998
OUR SECOND CENTURY
helping investors sustain the wealth of a lifetime.(sm)
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com
FSA-4.4.98
