Nuveen Exchange-Traded Funds
Providing tax-free income to help you live your dreams
INSURED QUALITY (NQI)
INSURED OPPORTUNITY (NIO)
PREMIER INSURED INCOME (NIF)
INSURED PREMIUM INCOME 2 (NPX)
SEMIANNUAL REPORT/APRIL 30, 1997
Photographic image of couple walking on beach.
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
9 Fund performance
11 Commonly used terms
13 Portfolio of investments
63 Statement of net assets
64 Statement of operations
65 Statement of changes in net assets
67 Notes to financial statements
76 Financial highlights
<PAGE>
Dear shareholder
"Shareholders continue to enjoy very attractive current yields generated by
portfolios of quality bonds." Photographic image of headshot of Chairman and
Chief Executive Officer of Nuveen. It is my pleasure to report to you on the
performance of Nuveen's exchange-traded funds. Over the past year, shareholders
in these funds were rewarded with attractive tax-free income. A hallmark of
Nuveen's fixed-income investments, this dependable tax-free income makes these
funds an excellent choice for those seeking a stable addition to their core
investment portfolio. To safeguard our shareholders' interests, Nuveen continues
to work to find ways to protect this level of income through changing market
conditions.
The funds' sound performance came during a year of volatility in the
municipal bond market, including a mid-year decline and a post-election rally.
However, by continuing to seek out undervalued bonds in sectors and regions we
believe are fundamentally strong, we were able to generate very attractive
current yields for shareholders while also preserving capital.
As of April 30, 1997, shareholders in the funds covered in this report were
receiving annual tax-free yields on net asset value that ranged from 6.25% to
6.56%. To match these attractive yields, investors in the 36% federal income tax
bracket would have had to earn at least 9.77% on taxable alternatives.
<PAGE>
During the same period, three of the funds outperformed the benchmark Lehman
Brothers Municipal Bond Index, which posted a 6.66% return. Over the past year,
the funds generated total returns, including reinvested dividends and capital
gains (if any) and changes in net asset value, of 6.59% to 7.45%, equivalent to
taxable total returns of 10.34% to 11.15% for investors in the 36% tax bracket.
The level of these returns gains added significance when viewed in the context
of bond market results for the past year, which reflect the rather flat
performance of 1996 and the concern over Federal Reserve deliberations in early
1997.
Nuveen has recently made significant and exciting additions to the investment
options we offer --that make it easier to keep more of what you earn. We
introduced three new equity and balanced funds for investors seeking both
long-term growth and current income. Further, Nuveen's municipal bond fund
selection is now one of the largest in the industry, since our merger with
Flagship Resources, Inc., a highly regarded sponsor of fixed-income mutual
funds. As a Nuveen shareholder, this merger offers you even greater access to
the municipal market.
For more complete information regarding Nuveen investment products, including
charges and expenses, call Nuveen at (800) 257-8787, or contact your financial
adviser for a prospectus. Please read the information carefully before you
invest.
On behalf of everyone at Nuveen, I thank you for your continued confidence
in us and our family of investments. You can continue to depend on us for
high-quality investment products that withstand the test of time. We look
forward to serving you in the future.
Sincerely,
Timothy R. Schwertfeger
Chairman of the Board
June 12, 1997
<PAGE>
Answering your questions
Tom Spalding, head of Nuveen's portfolio management team, reviews recent events
in the municipal market and offers insights into the strategies Nuveen uses to
manage your funds
How would you summarize the bond market over the past 12 months?
Throughout the past year, mixed economic reports produced conflicting interest
rate and inflation forecasts, which caused investors to view the markets with
alternating enthusiasm and uncertainty. In late 1996, evidence of an economic
slowdown, the strong U.S. dollar, and lack of inflationary pressures combined to
allay investor fears, sparking a rally in bonds that continued through the
post-election period. The early months of 1997 saw a re-emergence of talk about
inflation, and the markets continue to keep a close eye on the Federal Reserve
to see how seriously it regards such talk.
Over much of the past 12 months, euphoria in the equity market focused
investors' attention on stocks and brought record amounts of new money into
equity-based mutual funds, bypassing the bond market. Some investors, concerned
about a potential stock market correction, decided to take their profits, but
adopted a wait-and-see attitude about investing capital gains, electing to go
with short-term vehicles until a clearer picture of market trends emerged. These
events affected demand for bond issues of all types during the past year. Only
recently have we begun to see some evidence that investors are evaluating the
effect of the huge run-up in stock prices and are rebalancing their portfolios
by gradually shifting some assets from stocks into bonds.
The actions of the Federal Reserve also continue to play a role in bond market
performance. Although the Fed altered interest rates only once in 1996, at the
very beginning of the year, anticipation of further moves kept the markets
restless. With one rate increase approved already in March of this year, the
concern about potential changes in monetary policy--and the effect of such
changes on the markets--continues in 1997.
What strategies did you use to add value during this market?
The fluctuations of 1996 created specific inefficiencies in the market, enabling
Nuveen to uncover and take advantage of price discrepancies to improve fund
portfolios. For example, we were able to enhance the durability of the funds'
dividends by purchasing bonds with longer call protection. These bonds were
priced similarly to those with shorter calls as interest rates began to rise in
1996, creating a value investing opportunity. As rates moved down during the
year, the bonds with longer call protection then appreciated in value more than
those with shorter calls.
What role does research play in helping you achieve the funds' objectives?
As an integral part of our portfolio management strategy, Nuveen Research
provides portfolio managers with objective appraisals of the creditworthiness of
new municipal issues, while maintaining surveillance of the credit performance
for all portfolio holdings. To track individual holdings, each Nuveen Research
analyst is responsible for a specific surveillance portfolio, which is defined
in terms of geography and sector (e.g., healthcare, housing). Specialization by
sector enables our Research teams to focus their credit quality evaluation
efforts and complement the vantage point of each portfolio manager.
What is the current economic outlook?
The economy in the second quarter has grown at a slower pace than during the
first quarter, however, the growth still may be at a level that exceeds the
Federal Reserve's long-term targets. Interest rates on 30-year Treasuries have
moved in a range of between 6.65% to 7.20% over the past several months, and
expectations are that this range of rates may continue through the third
quarter.
Of course, that's a short-term outlook. By following a disciplined value
strategy and depending on fundamental research, the long-term outlook for our
municipal bond funds--and for Nuveen shareholders--is very good. We will
continue to look for opportunities in sectors like healthcare and public power
and in regions like the Midwest and the Sun Belt. And will continue to identify
bonds that are structured in ways that make them attractive through a complete
interest rate cycle.
Photographic image of Tom Spalding, Portfolio Manager at Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on develop ments in the municipal market.
<PAGE>
NUVEEN INSURED QUALITY MUNICIPAL FUND, INC.
NQI
In keeping with the Fund's goal of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends. The fund also paid
shareholders a capital gains distribution in December.
<TABLE>
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/13/96 $0.0820
6/12/96 $0.0820
7/11/96 $0.0820
8/13/96 $0.0820
9/11/96 $0.0820
10/10/96 $0.0820
11/13/96 $0.0820
12/11/96 $0.0820 $0.0709
1/13/97 $0.0820
2/12/97 $0.0820
3/12/97 $0.0820
4/11/97 $0.0820
<CAPTION>
FUND HIGHLIGHTS 4/30/97
<S> <C>
Yield 6.56%
Taxable-equivalent yield 10.25%
Annual total return on NAV 6.59%
Taxable-equivalent total return 10.34%
Share price $15.00
NAV $15.15
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC.
NIO
In keeping with the Fund's goal of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends. The fund also paid
shareholders a capital gains distribution in December.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/13/96 $0.0820
6/12/96 $0.0820
7/11/96 $0.0820
8/13/96 $0.0820
9/11/96 $0.0820
10/10/96 $0.0820
11/13/96 $0.0820
12/11/96 $0.0820 $0.0240
1/13/97 $0.0820
2/12/97 $0.0820
3/12/97 $0.0820
4/11/97 $0.0820
<CAPTION>
FUND HIGHLIGHTS 4/30/97
<S> <C>
Yield 6.45%
Taxable-equivalent yield 10.08%
Annual total return on NAV 7.38%
Taxable-equivalent total return 11.15%
Share price $15.25
NAV $15.24
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN PREMIER INSURED MUNICIPAL INCOME FUND, INC.
NIF
In keeping with the Fund's goal of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends. This dividend has
remained stable for the last 53 months.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/13/96 $0.0780
6/12/96 $0.0780
7/11/96 $0.0780
8/13/96 $0.0780
9/11/96 $0.0780
10/10/96 $0.0780
11/13/96 $0.0780
12/11/96 $0.0780
1/13/97 $0.0780
2/12/97 $0.0780
3/12/97 $0.0780
4/11/97 $0.0780
<CAPTION>
FUND HIGHLIGHTS 4/30/97
<S> <C>
Yield 6.29%
Taxable-equivalent yield 9.83%
Annual total return on NAV 6.88%
Taxable-equivalent total return 10.44%
Share price $14.875
NAV $15.30
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND 2
NPX
The Fund's monthly tax-free dividend was increased during the 12 months ended
April 30, 1997. Common shareholders continue to benefit from the Fund's
leveraged structure.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/13/96 $0.0595
6/12/96 $0.0595
7/11/96 $0.0595
8/13/96 $0.0595
9/18/96 $0.0595
10/10/96 $0.0595
11/13/96 $0.0605
12/11/96 $0.0605
1/13/97 $0.0605
2/12/97 $0.0605
3/12/97 $0.0605
4/11/97 $0.0605
<CAPTION>
FUND HIGHLIGHTS 4/30/97
<S> <C>
Yield 6.25%
Taxable-equivalent yield 9.77%
Annual total return on NAV 7.45%
Taxable-equivalent total return 10.73%
Share price $11.625
NAV $12.90
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
Commonly used terms
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in
the case of this report, April 30, 1997) divided by its closing price per share
on that date.
Taxable equivalent yield
The return an investor subject to a given income tax rate would need to
obtain from a fully taxable investment to equal the fund's stated annual ized
yield on share price. In this report, the tax rate is assumed to be 36% for
shareholders, based on 1997 incomes of $124,650-$271,050 for investors filing
singly, $151,750-$271,050 for those filing jointly.
Net Asset Value (NAV)
The market value of all securities and other assets held by an exchange-traded
fund, minus any liabilities. The NAV per share is the fund's net assets, less
the value of its preferred shares, divided by the total number of common shares
outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if any.
Taxable equivalent total return
The total return an investor subject to a given income tax rate would need to
obtain from a fully taxable investment to equal the Fund's stated total return
on NAV.
Leverage
A technique used to enhance the income produced for common shareholders by a
long-term municipal bond fund through the issuance of short-term preferred
shares. The proceeds from the sale of the preferred shares can be used to
purchase additional long-term bonds, thus increasing the portfolio's income
stream. Changes in net asset value per share, both up and down, are also
magnified by leverage.
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the six-month period ended April 30, 1997. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
NUVEEN INSURED QUALITY MUNICIPAL FUND, INC. (NQI)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 1.1%
$ 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 Aaa 6/97 at 102 $ 8,692,440
- -----------------------------------------------------------------------------------------------------------------
ALASKA - 1.6%
7,785,000 Alaska Housing Finance Corporation, Insured
Mortgage Program Bonds, 1990 First Series,
7.800%, 12/01/30 Aa1 12/00 at 102 7,836,459
5,000,000 Municipality of Anchorage, Alaska, Senior Lien
Refunding Electric Revenue Bonds, 1989,
7.125%, 6/01/06 Aaa 6/99 at 102 5,335,450
- -----------------------------------------------------------------------------------------------------------------
ARIZONA - 5.3%
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) AAA 7/03 at 102 5,409,050
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 Aaa 7/01 at 102 10,729,000
10,000,000 Business Development Finance Corporation, Tucson
(Arizona), Local Development Lease Revenue
Refunding Bonds, Series 1992, 6.250%, 7/01/08 Aaa 7/02 at 102 10,559,600
15,250,000 City of Tucson, Arizona, Water System Revenue
Bonds, Series 1991, 7.100%, 7/01/18
(Pre-refunded to 7/01/01) Aaa 7/01 at 102 16,874,278
- -----------------------------------------------------------------------------------------------------------------
ARKANSAS - 2.4%
9,810,000 Arkansas Development Finance Authority, Single
Family Mortgage Revenue Bonds, 1995 Series B
(Mortgage-Backed Securities Program),
6.700%, 7/01/27 (Alternative Minimum Tax) AAA 7/05 at 102 10,109,892
Pope County, Arkansas, Solid Waste Disposal
Revenue Bonds, Series 1991 (Arkansas Power &
Light Company Project):
6,400,000 8.000%, 1/01/21 (Alternative Minimum Tax) BBB 1/01 at 102 6,959,744
2,250,000 8.000%, 1/01/21 (Alternative Minimum Tax) Aaa 1/01 at 102 2,477,160
- -----------------------------------------------------------------------------------------------------------------
CALIFORNIA - 7.8%
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 AAA 7/04 at 102 5,605,270
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA (CONTINUED)
$ 10,000,000 Certificates of Participation (1991 Financing
Project), County of Alameda, California, Alameda
County Public Facilities Corporation,
6.000%, 9/01/21 Aaa 9/06 at 102 $ 10,132,000
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 Aaa 8/02 at 102 11,426,516
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) Aaa 8/06 at 102 5,017,700
18,560,000 Los Angeles County Metropolitan Transportation
Authority (California), Proposition A, Sales Tax
Revenue Refunding Bonds, Series 1993-A,
5.000%, 7/01/21 Aaa 7/03 at 100 16,520,070
6,910,000 Ontario Redevelopment Financing Authority (San
Bernardino County, California), 1993 Revenue
Bonds (Ontario Redevelopment Project No. 1),
5.850%, 8/01/22 Aaa 8/03 at 102 7,067,686
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) Aaa 5/05 at 101 8,702,470
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COLORADO - 3.0%
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) Aaa 2/01 at 102 5,513,200
4,500,000 6.250%, 2/15/21 (pre-refunded to 2/15/01) Aaa 2/01 at 102 4,807,440
2,505,000 Adams County, Colorado, Single Family Revenue
Bonds, 1991 Series A-2, 8.700%, 6/01/12 Aaa 6/01 at 103 2,721,382
5,630,000 E-470 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 Aaa 8/05 at 103 5,841,238
20,000 Arapahoe County, Colorado, GNMA Collateralized
Single Family Mortgage Revenue Bonds,
Series 1988A, 8.200%, 8/01/14 (Alternative
Minimum Tax) AAA 8/98 at 102 20,801
3,540,000 Castle Pines Metropolitan District, Douglas County,
Colorado, General Obligation Refunding and
Improvement Bonds, Series 1990, 7.625%, 12/01/15 Aaa 12/00 at 102 3,916,125
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
COLORADO (CONTINUED)
$ 230,000 El Paso County, Colorado, Colorado Local Single
Family Mortgage Revenue Bonds, 1990 Series A,
7.850%, 9/01/09 (Alternative Minimum Tax) AAA 9/00 at 102 $ 240,948
1,330,000 Jefferson County, Colorado, Single Family Revenue
Refunding Bonds, Series 1991A, 8.875%, 10/01/13 Aaa 4/01 at 103 1,423,406
- -----------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.0%
15,450,000 District of Columbia (Washington, D.C.), General
Obligation Bonds (Series 1990B), 7.500%, 6/01/10
(Pre-refunded to 6/01/00) Aaa 6/00 at 102 16,939,071
- -----------------------------------------------------------------------------------------------------------------
FLORIDA - 1.4%
11,240,000 Florida Housing Finance Agency, Single Family
Mortgage Revenue Bonds, 1994 Series B,
6.650%, 7/01/26 (Alternative Minimum Tax) Aaa 7/04 at 102 11,588,440
- -----------------------------------------------------------------------------------------------------------------
GEORGIA - 0.4%
2,930,000 Georgia Residential Finance Authority, Single Family
Mortgage Bonds, 1988 Series C (FHA Insured or
VA Guaranteed Mortgage Loans), 8.300%, 12/01/19
(Alternative Minimum Tax) AA+ 12/98 at 103 2,966,977
- -----------------------------------------------------------------------------------------------------------------
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) Aaa 12/02 at 103 6,414,309
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) Aaa 5/06 at 101 16,512,175
- -----------------------------------------------------------------------------------------------------------------
ILLINOIS - 8.0%
18,880,000 Illinois Health Facilities Authority, FHAInsured
Mortgage Revenue Bonds, Series 1996 (Sinai
Health System), 6.000%, 2/15/24 Aaa 2/06 at 102 18,959,862
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) Aaa 5/01 at 102 5,489,550
10,000,000 City of Chicago, General Obligation Bonds, Project
Series 1995, 6.125%, 1/01/16 Aaa 7/05 at 102 10,211,400
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 Aaa 1/05 at 102 6,372,900
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 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 Aaa 1/00 at 102 $ 6,877,668
10,325,000 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 Aaa 12/03 at 102 10,155,257
425,000 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) Aaa 8/00 at 102 447,304
7,700,000 Board of Trustees of Southern Illinois University,
Southern Illinois University Medical Facilities
System Revenue Bonds, Series 1977,
5.875%, 4/01/23 Aaa 4/07 at 102 7,648,872
- -----------------------------------------------------------------------------------------------------------------
INDIANA - 6.5%
9,050,000 Indiana Development Finance Authority,
Environmental Revenue Bonds, Series 1993B (PSI
Energy, Inc.), 5.750%, 2/15/28 (Alternative
Minimum Tax) Aaa 2/03 at 102 8,751,531
2,530,000 Indiana Housing Finance Authority, Residential
Mortgage Bonds, 1988 Series R-A, 8.375%, 1/01/20
(Alternative Minimum Tax) Aa 1/99 at 102 1/2 2,626,697
9,500,000 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) Aaa 7/00 at 102 9,966,830
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 Aaa 7/01 at 102 6,501,060
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) Aaa 6/01 at 102 10,603,038
4,230,000 City of Rockport, Indiana, Pollution Control Revenue
Refunding Bonds (Indiana Michigan Power
Company Project), Series B, 7.600%, 3/01/16 Aaa 3/01 at 102 4,636,376
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 Aaa 8/01 at 102 10,837,800
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
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 Aaa 8/01 at 102 $ 5,749,453
- -----------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.7%
2,580,000 Louisiana Housing Finance Agency, GNMA
Collateralized Single Family Mortgage Revenue
Bonds, Series 1988, 8.300%, 11/01/20
(Alternative Minimum Tax) Aaa 11/98 at 102 2,685,574
13,170,000 City of New Orleans, Louisiana, General Obligation
Refunding Bonds, Series 1995, 6.200%, 10/01/21 Aaa 10/05 at 102 13,581,167
5,595,000 Orleans Levee District (A Political Subdivision of the
State of Louisiana), Public Improvement Bonds,
Series 1986, 5.950%, 11/01/15 Aaa 12/05 at 103 5,724,133
- -----------------------------------------------------------------------------------------------------------------
MAINE - 1.6%
12,745,000 Maine State Housing Authority, Mortgage Purchase
Bonds, 1991 Series A, 7.400%, 11/15/22 Aaa 5/01 at 102 13,436,289
- -----------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.9%
7,100,000 Massachusetts Housing Financing Agency, Single
Family Housing Revenue Bonds, Series 12,
7.500%, 12/01/13 Aaa 6/99 at 102 7,459,331
- -----------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.8%
12,490,000 Minneapolis/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) AAA 8/98 at 102 12,966,494
1,844,000 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 Aaa 4/01 at 102 1,941,253
- -----------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 2.8%
8,750,000 Mississippi Home Corporation, Single Family
Mortgage Revenue Bonds, Series 1996C,
5.500%, 6/01/29 (Alternative Minimum Tax) Aaa 6/06 at 105 9,779,963
6,375,000 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) Aaa 10/99 at 102 6,695,854
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MISSISSIPPI (CONTINUED)
$ 2,545,000 Harrison County, Wastewater Management District
(Mississippi), Wastewater Treatment Facilities
Revenue Refunding Bonds, Series 1991A,
8.500%, 2/01/13 Aaa No Opt. Call $ 3,302,545
2,715,000 Harrison County, Wastewater Management District
(Mississippi), Wastewater Treatment Facilities
Revenue Refunding Bonds, Series 1991B,
7.750%, 2/01/14 Aaa No Opt. Call 3,329,649
- -----------------------------------------------------------------------------------------------------------------
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 Aaa 2/06 at 102 5,088,900
- -----------------------------------------------------------------------------------------------------------------
NEVADA - 2.0%
3,270,000 Clark County, Nevada, Industrial Development
Revenue Bonds (Nevada Power Company Project),
Series 1990, 7.800%, 6/01/20 (Alternative
Minimum Tax) Aaa 6/00 at 102 3,563,679
13,185,000 Washoe County, Nevada, Hospital Refunding
Revenue Bonds (Washoe Medical Center, Inc.
Project), Series 1994A, 6.000%, 6/01/19 Aaa 6/04 at 102 13,243,673
- -----------------------------------------------------------------------------------------------------------------
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 Aaa 7/04 at 102 3,896,700
- -----------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.7%
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 AAA 1/01 at 102 4,109,606
5,000,000 City of Albuquerque, New Mexico, Airport Revenue
Bonds, Series 1995A, 6.600%, 7/01/16
(Alternative Minimum Tax) Aaa 7/00 at 105 5,295,150
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 A+ 4/01 at 102 6,469,080
5,750,000 City of Santa Fe, New Mexico, Revenue Bonds,
Series 1994A, 6.300%, 6/01/24 (Pre-refunded
to 6/01/04) Aaa 6/04 at 100 6,207,125
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEW YORK - 17.0%
$ 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 A1 7/05 at 102 $ 7,132,020
12,000,000 New York State Finance Agency, Housing Project
Mortgage Revenue Bonds, 1996 Series A
Refunding, 6.125%, 11/01/20 Aaa 5/06 at 102 12,158,040
12,860,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home Insured
Mortgage Revenue Bonds, 1989 Series A,
7.600%, 2/15/29 Aa 2/99 at 102 13,720,977
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) Aaa 2/00 at 102 22,120,088
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 Aaa 2/05 at 102 13,156,800
5,000,000 State of New York Mortgage Agency, Homeowner
Mortgage Revenue Bonds, Series MM-1,
7.950%, 10/01/21 (Alternative Minimum Tax) Aa 2/01 at 102 5,295,700
The City of New York, General Obligation Bonds,
Fiscal 1991 Series A:
2,000,000 8.000%, 3/15/11 Aaa 3/00 at 101 1/2 2,191,720
6,000,000 7.250%, 3/15/19 Aaa 3/00 at 101 1/2 6,455,880
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 Aaa 6/01 at 102 18,807,666
New York City, New York, Municipal Water Finance
Authority, Water and Sewer System Revenue Bonds,
Fiscal 1996 Series A:
20,000,000 5.500%, 6/15/23 Aaa 6/05 at 100 19,183,400
10,335,000 6.000%, 6/15/25 Aaa 6/05 at 101 10,502,634
10,000,000 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) Aaa 1/00 at 102 10,914,100
- -----------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 2.6%
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 Aaa 1/05 at 102 21,529,166
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
OHIO - 0.5%
$ 5,000,000 County of Lucas, Ohio, Hospital Improvement and
Refunding Revenue Bonds, Series 1993 (The
Toledo Hospital), 5.000%, 11/15/22 Aaa 11/03 at 102 $ 4,442,950
- -----------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.6%
1,940,000 Oklahoma Housing Finance Agency, Single Family
Mortgage Revenue Bonds, 1991 Series A,
7.200%, 3/01/11 Aaa 3/01 at 102 2,046,293
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) Aaa 7/00 at 102 10,858,320
- -----------------------------------------------------------------------------------------------------------------
OREGON - 1.1%
10,000,000 Oregon Health Sciences University, Insured Revenue
Bonds, 1995 Series B, 5.250%, 7/01/25 Aaa 7/06 at 102 9,405,100
- -----------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 5.4%
8,685,000 Pennsylvania Higher Education Assistance Agency,
Student Loan Adjustable Rate Tender Revenue
Refunding Bonds, 1985 Series A, 6.800%, 12/01/00 Aaa No Opt. Call 9,215,654
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 Aaa 10/04 at 102 7,082,040
7,250,000 Lehigh County Industrial Development Authority,
Pollution Control Revenue Refunding Bonds, 1995
Series A(Pennsylvania Power &Light Company
Project), 6.150%, 8/01/29 Aaa 8/05 at 102 7,429,220
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) Aaa 8/01 at 102 15,640,360
5,000,000 Health Care Facilities Authority of Sayre
(Pennsylvania), Series 1991A Revenue Bonds,
Guthrie Healthcare System, 7.100%, 3/01/17 Aaa 3/01 at 102 5,405,450
- -----------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 3.0%
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) Aaa 8/01 at 102 14,015,624
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) Aaa 7/04 at 102 5,315,023
5,000,000 Providence Public Buildings Authority, Revenue
Bonds, Series A, 7.250%, 12/15/10 (Pre-refunded
to 12/15/00) Aaa 12/00 at 102 5,514,250
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
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 Aaa 2/03 at 102 $ 5,179,150
- -----------------------------------------------------------------------------------------------------------------
TEXAS - 4.2%
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 Aaa 9/05 at 102 8,149,280
4,695,000 Harris County, Texas, Health Facilities Development
Corporation, Special Facilities Revenue Bonds
(Texas Medical Center Project), Series 1990,
7.375%, 5/15/20 (Pre-refunded to 5/15/00) Aaa 5/00 at 102 5,133,418
Harris County Hospital District, Refunding Revenue
Bonds, Series 1990:
3,000,000 7.500%, 2/15/03 Aaa No Opt. Call 3,344,100
5,000,000 7.400%, 2/15/10 Aaa No Opt. Call 5,903,350
4,100,000 City of Houston, Texas, Airport System Senior Lien
Revenue Bonds, Series 1988, 8.200%, 7/01/17
(Alternative Minimum Tax) Aaa 7/98 at 102 1/2 4,369,041
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 Aaa 7/00 at 102 7,542,901
- -----------------------------------------------------------------------------------------------------------------
UTAH - 2.0%
10,770,000 Intermountain Power Agency (Utah), Power Supply
Revenue Refunding Bonds, 1993 Series A,
5.000%, 7/01/23 A1 7/03 at 100 9,375,392
6,000,000 Salt Lake City, Utah, Hospital Revenue Refunding
Bonds (IHC Hospitals, Inc.), Series 1988 A,
8.000%, 5/15/07 AAA 5/98 at 102 6,931,440
- -----------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.2%
1,830,000 Chesapeake Hospital Authority, Hospital Facility
Revenue Bonds (Chesapeake General Hospital)
Series 1990, 7.600%, 7/01/00 Aaa No Opt. Call 1,984,305
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
WISCONSIN - 1.5%
Wisconsin Health and Educational Facilities
Authority, Revenue Bonds, Series 1990B
(Waukesha Memorial Hospital, Inc. Project):
$ 6,405,000 7.250%, 8/15/19 (Pre-refunded to 8/15/00) Aaa 8/00 at 102 $ 7,012,194
450,000 7.250%, 8/15/19 Aaa 8/00 at 102 486,342
5,000,000 Southeast Wisconsin, Professional Baseball Park
District, Sales Tax Revenue Bonds, Series 1996,
5.800%, 12/15/26 Aaa 3/07 at 101 4,968,100
$780,034,000 Total Investments - (cost $769,343,310) - 98.3% 812,889,548
================
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.2%
$ 500,000 Ascension Parish Pollution Control (BASF Wyandotte
Corporation), Variable Rate Demand Bonds,
4.000%, 12/01/05+ P-1 500,000
800,000 City of Duluth, Minnesota, By The Directors of
Trusts of Miller Memorial Hospital, Doing Business
As Miller-Dwan Medical Center, Variable Rate
Demand Bonds, Health Facilities Revenue Bonds
(Miller-Dwan Medical Center), Series 1996,
4.100%, 6/01/19+ A-1+ 800,000
$ 1,300,000 Total Temporary Investments - 0.2% 1,300,000
================
Other Assets Less Liabilities - 1.5% 12,420,506
Net Assets - 100% $826,610,054
============
<PAGE>
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 94 $750,506,502 92%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 5 32,446,810 4
PORTFOLIO OF A+ A1 3 22,976,492 3
INVESTMENTS BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 1 6,959,744 1
(EXCLUDING
TEMPORARY
INVESTMENTS):
TOTAL 103 $812,889,548 100%
<FN>
All of the bonds in the portfolio, excluding temporary investments in short-term
municipal securities, are either covered by Original Issue Insurance, Secondary
Market Insurance or Portfolio Insurance, or are backed by an escrow or trust
containing sufficient U.S. Government or U.S. Government agency securities, any
of which ensure the timely payment of principal and interest.
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
** Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC. (NIO)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 2.7%
$ 170,000 Alabama Housing Finance Authority, Single Family
Mortgage Revenue Bonds (GNMA Collateralized
Home Mortgage Revenue Bonds Program),
1990 Series B, 7.900%, 10/01/22 (Alternative
Minimum Tax) AAA 10/00 at 102 $ 170,700
3,850,000 Alabama Housing Finance Authority, Multifamily
Housing Revenue Refunding Bonds (GNMA
Collateralized - Royal Hills), 1995 Series F,
6.500%, 7/20/30 Aaa 7/05 at 103 3,998,726
11,000,000 The Special Care Facilities Financing Authority of
the City of Birmingham (Alabama), Baptist Medical
Centers, Revenue Bonds, Series 1995-B (Baptist
Health System, Inc.), 5.875%, 11/15/20 Aaa 5/05 at 102 11,007,920
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 Aaa 11/06 at 102 7,470,972
10,000,000 5.875%, 11/15/26 Aaa 11/06 at 102 10,008,000
3,745,000 City of Demopolis, Alabama, General Obligation
Warrants, Series 1991, 6.900%, 6/01/16
(Pre-refunded to 6/01/01) Aaa 6/01 at 102 4,120,848
8,000,000 Houston County Health Care Authority Hospital
Revenue Bonds, Southeast Alabama Medical
Center Series 1989, 7.250%, 10/01/19
(Pre-refunded to 10/01/99) Aaa 10/99 at 102 8,643,200
4,250,000 County Board of Education of Shelby County,
Alabama, Capital Outlay Refunding School
Warrants, Series 1995, 5.875%, 2/01/17 Aaa 2/05 at 102 4,309,373
- -----------------------------------------------------------------------------------------------------------------
ALASKA - 1.7%
4,000,000 Alaska Energy Authority, Power Revenue Bonds,
Second Series (Bradley Lake Hydroelectric Project),
7.250%, 7/01/21 Aaa 7/00 at 102 4,344,160
Alaska Housing Finance Corporation, Insured
Mortgage Program Bonds, 1990 First Series:
4,250,000 7.750%, 12/01/14 Aa1 12/00 at 102 4,277,753
6,825,000 7.800%, 12/01/30 Aa1 12/00 at 102 6,870,113
15,950,000 Alaska State Housing Finance Corporation,
Governmental Purpose Bonds, 1995 Series A,
5.875%, 12/01/30 Aaa 12/05 at 102 15,549,974
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ARIZONA - 1.0%
$ 5,000,000 Coconino County, Arizona, Pollution Control
Corporation, Pollution Control Revenue Refunding
Bonds (Arizona Public Service Company), 1993
Series A, 5.875%, 8/15/28 Baa1 8/03 at 102 $ 5,002,750
12,465,000 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 Aaa 1/02 at 103 13,748,770
- -----------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.8%
13,490,000 Arkansas Development Finance Authority, Single
Family Mortgage Revenue Bonds, 1990 Series A
(GNMA-Backed Securities Program),
7.400%, 9/01/23 (Alternative Minimum Tax) AAA 9/01 at 102 14,260,414
- -----------------------------------------------------------------------------------------------------------------
CALIFORNIA - 8.6%
California Health Facilities Financing 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) Aaa 7/01 at 102 9,766,980
14,000,000 6.650%, 7/01/21 (Pre-refunded to 7/01/01) Aaa 7/01 at 102 15,271,760
805,000 California Housing Finance Agency, Home Mortgage
Revenue Bonds, 1991 Series C, 7.450%, 8/01/11
(Alternative Minimum Tax) Aa 8/01 at 102 830,382
6,135,000 California Housing Finance Agency, Housing
Revenue Bonds (Insured), 1994 Series C,
6.250%, 8/01/25 Aaa 8/04 at 102 6,281,320
California Rural Home Mortgage, Finance Authority,
Single Family Mortgage Revenue Bonds (Mortgage-
Backed Securities Program), 1996 Series A:
4,345,000 7.550%, 11/01/26 (Alternative Minimum Tax) AAA No Opt. Call 4,856,841
3,615,000 6.450%, 5/01/27 (Alternative Minimum Tax) AAA No Opt. Call 4,030,725
7,000,000 California Statewide Communities Development
Authority, Certificates of Participation, Huntington
Memorial Hospital, 5.800%, 7/01/26 AAA 7/06 at 102 6,936,160
3,100,000 Campbell Union School District, Santa Clara County,
California, 1994 General Obligation Bonds,
Series A, 6.250%, 8/01/19 Aaa 8/04 at 102 3,219,815
8,200,000 Castaic Lake Water Agency (California), Refunding
Revenue Certificates of Participation (Water System
Improvement Projects), Series 1994A,
6.300%, 8/01/20 Aaa 8/04 at 102 8,546,122
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 Aaa 6/03 at 102 10,460,908
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA (CONTINUED)
$ 5,500,000 Fallbrook Union High School District (San Diego
County, California), 1994 General Obligation
Bonds, Series A, 6.250%, 9/01/19 Aaa 9/04 at 102 $ 5,714,115
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) Aaa 10/00 at 102 7,076,822
9,000,000 County of Orange, California, Refunding Recovery
Bonds, 1995 Series A, 5.750%, 6/01/15 Aaa 6/05 at 102 8,974,440
12,500,000 County of Orange, California, 1996 Recovery
Certificates of Participation, Series A,
6.000%, 7/01/26 Aaa 7/06 at 102 12,645,875
6,500,000 City of Salinas, Housing Facility Refunding Revenue
Bonds, Series 1994A (GNMA Collateralized--
Villa Serra Project), 6.600%, 7/20/30 AAA 7/04 at 102 6,781,775
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) Aaa 5/05 at 101 8,702,470
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) Aaa 5/06 at 101 17,065,260
11,000,000 Santa Ana Financing Authority, Police Administration
and Housing Facility Lease Revenue Bonds,
Series 1994A, 6.250%, 7/01/24 Aaa No Opt. Call 11,918,060
5,500,000 Santa Clara County Financing Authority, Lease
Revenue Bonds (VMC Facility Replacement
Project), 1994 Series A, 6.750%, 11/15/20 Aaa 11/04 at 102 6,037,405
- -----------------------------------------------------------------------------------------------------------------
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 Aaa 11/01 at 101 15,159,886
- -----------------------------------------------------------------------------------------------------------------
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 Aaa 7/04 at 101 2,755,925
- -----------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.5%
19,355,000 District of Columbia (Washington, D.C.), General
Obligation Bonds (Series 1989A), 7.500%, 6/01/09
(Pre-refunded to 6/01/99) Aaa 6/99 at 102 20,860,625
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
DISTRICT OF COLUMBIA (CONTINUED)
$ 3,000,000 District of Columbia (Washington, D.C.), Hospital
Revenue Bonds (National Rehabilitation Hospital, Inc.
Issue), Series 1989A, Medlantic Healthcare Group,
7.100%, 11/01/11 (Pre-refunded to 11/01/99) Aaa 11/99 at 102 $ 3,231,540
6,000,000 District of Columbia, Hospital Improvement and
Refunding Revenue Bonds (Children's Hospital
Issue), Series 1992A, 6.250%, 7/15/19 Aaa 7/02 at 102 6,115,920
4,950,000 District of Columbia Housing Finance Agency,
Collateralized Single Family Mortgage Revenue
Bonds, Series 1988C, 7.850%, 12/01/22
(Alternative Minimum Tax) AAA 6/00 at 102 5,188,937
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) AAA 12/01 at 102 4,996,026
5,000,000 District of Columbia, Revenue Bonds (The American
College of Obstetricians and Gynecologists Issue),
Series 1991, 6.500%, 8/15/18 Aaa 8/01 at 102 5,266,450
- -----------------------------------------------------------------------------------------------------------------
FLORIDA - 1.5%
13,170,000 Florida Housing Finance Agency, Home Ownership
Revenue Refunding Bonds, 1987 Series G1,
8.595%, 11/01/17 AAA No Opt. Call 14,875,252
5,755,000 Florida Housing Finance Agency, Single Family
Mortgage Refunding Bonds, 1987 Series One
Class B, 7.100%, 1/01/17 AAA 9/97 at 103 5,936,858
3,440,000 Housing Finance Authority of Dade County (Florida),
Single Family Mortgage Revenue Refunding
Bonds, 1991 Series D, 6.950%, 12/15/12 Aaa 12/01 at 102 3,631,539
3,055,000 Escambia County Housing Finance Authority
(Florida), Single Family Mortgage Revenue Bonds
(Multi-County Program), Series 1995,
6.950%, 10/01/27 (Alternative MinimumTax) Aaa 4/05 at 102 3,183,616
- -----------------------------------------------------------------------------------------------------------------
GEORGIA - 1.0%
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) Aaa 1/01 at 102 9,054,204
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 Aaa 10/05 at 102 5,040,150
5,000,000 The Glynn-Brunswick Memorial Hospital Authority
Revenue Anticipation Certificates (Southeast
Georgia Health Systems Project), Series 1996,
5.250%, 8/01/13 Aaa 8/06 at 102 4,791,250
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
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) Aaa 5/06 at 101 $ 24,747,853
- -----------------------------------------------------------------------------------------------------------------
IDAHO - 0.6%
2,990,000 Idaho Housing Agency, Single Family Mortgage
Bonds, 1994 Series B, 6.750%, 7/01/22 Aa No Opt. Call 3,158,397
2,880,000 Idaho Housing Agency Single Family Alternative
Minimum Tax, 6.900%, 7/01/26 (Alternative
Minimum Tax) Aa No Opt. Call 3,080,794
4,365,000 Idaho Housing Agency, Single Family Mortgage
Bonds, 1995 Series B, 6.600%, 7/01/27
(Alternative Minimum Tax) Aaa 1/05 at 102 4,512,537
- -----------------------------------------------------------------------------------------------------------------
ILLINOIS - 8.3%
20,000,000 Illinois Health Facilities Authority, Brokaw-
Mennonite Association, Revenue Refunding Bonds,
Series 1992 (BroMenn Healthcare), 6.250%, 8/15/18 Aaa 8/02 at 102 20,449,400
3,500,000 Illinois Health Facilities Authority, Revenue Bonds,
Series 1990 (Alexian Brothers Medical Center, Inc.
Project), 7.125%, 1/01/21 Aaa 1/01 at 102 3,778,250
2,500,000 Illinois Health Facilities Authority Revenue Bonds,
Series 1991 (Memorial Medical Center System
Project), Springfield, Illinois, 7.100%, 10/01/21 Aaa 10/01 at 102 2,723,550
3,135,000 Illinois Housing Development Authority, Residential
Mortgage Revenue Bonds, 1989 Series A,
7.400%, 2/01/20 (Alternative MinimumTax) Aa 8/99 at 102 3,229,489
Participations, The State of Illinois, Department of
Central Management Services, Illinois Student
Assistance Commission:
2,965,000 6.875%, 7/01/07 Aaa 7/02 at 102 3,264,732
6,085,000 6.950%, 7/01/13 Aaa 7/02 at 102 6,636,179
5,000,000 State of Illinois, Civic Center Bonds (Dedicated Tax
Revenue), Series 1990-A, 7.000%, 12/15/10 Aaa 12/00 at 102 5,399,750
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) Aaa 6/01 at 102 7,154,447
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 Aa 2/03 at 102 4,108,404
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) Aaa 7/02 at 101 1/2 11,023,400
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 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) Aaa 1/01 at 100 $ 6,093,678
The County of Cook, Illinois, General Obligation
Bonds, Series 1991:
18,430,000 6.750%, 11/01/18 (Pre-refunded to 11/01/01) Aaa 11/01 at 102 20,210,891
26,475,000 6.250%, 11/01/21 Aaa 11/01 at 102 27,105,635
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) Aaa 10/01 at 102 7,220,077
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 Aaa 10/04 at 74 2/32 5,975,249
16,470,000 0.000%, 4/01/16 Aaa 10/04 at 47 2/32 4,985,304
4,560,000 County of Macon, Illinois, Revenue Bonds, Millikin
University, Series 1995, 6.250%, 10/01/16 Aaa 10/05 at 100 4,727,170
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) Aaa 6/04 at 102 5,601,250
- -----------------------------------------------------------------------------------------------------------------
INDIANA - 4.4%
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) Aaa 7/01 at 102 2,858,856
10,000,000 Indiana Health Facility Financing Authority, Hospital
Revenue Refunding and Improvement Bonds,
Series 1995 (Community Hospitals Projects),
5.700%, 5/15/22 Aaa 5/06 at 102 9,695,300
825,000 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) Aaa 7/00 at 102 847,283
2,215,000 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) Aaa 7/00 at 102 2,328,895
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 A1 11/02 at 102 10,780,245
12,250,000 City of Lawrenceburg, Indiana, Pollution Control
Revenue Refunding Bonds (Indiana Michigan
Power Company Project), Series D, 7.000%, 4/01/15 Aaa 4/02 at 102 13,288,555
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
INDIANA (CONTINUED)
$ 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) Aaa 6/01 at 102 $ 14,236,324
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) Aaa 7/04 at 102 10,963,864
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 Aaa 12/01 at 102 15,227,940
- -----------------------------------------------------------------------------------------------------------------
IOWA - 1.4%
5,000,000 City of Davenport, Iowa, Hospital Facility Revenue
Bonds (Mercy Hospital Project), Series 1992,
6.250%, 7/01/22 Aaa 7/02 at 102 5,166,950
11,400,000 City of Davenport, Iowa, Insured Hospital Revenue
Bonds (St. Luke's Hospital), 1990 Series A,
7.400%, 7/01/20 Aaa 7/00 at 102 12,346,428
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 Aaa 11/01 at 101 7,481,810
- -----------------------------------------------------------------------------------------------------------------
KANSAS - 0.1%
2,475,000 Sedgwick County, Kansas, and Shawnee County,
Kansas, GNMA Collateralized Mortgage Revenue
Bonds, Senior 1991 Series A, 7.300%, 12/01/12 Aaa 6/01 at 103 2,613,650
- -----------------------------------------------------------------------------------------------------------------
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) Aaa 3/02 at 102 11,000,800
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) Aaa 2/01 at 24 21/32 10,904,750
- -----------------------------------------------------------------------------------------------------------------
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) Aaa 5/02 at 102 17,227,364
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
LOUISIANA (CONTINUED)
$ 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) Aaa 9/02 at 100 $ 5,874,961
9,525,000 Orleans Levee District (A Political Subdivision of
the State of Louisiana), Public Improvement Bonds,
Series 1986, 5.950%, 11/01/15 Aaa 12/05 at 103 9,744,837
3,000,000 Parish of St. Charles, State of Louisiana, Pollution
Control Revenue Bonds (Louisiana Power & Light
Company Project), Series 1991, 7.500%, 6/01/21
(Alternative Minimum Tax) Aaa 6/01 at 102 3,282,660
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 Aaa 2/04 at 102 3,610,180
- -----------------------------------------------------------------------------------------------------------------
MAINE - 0.6%
10,500,000 Maine Health and Higher Educational Facilities
Authority, Revenue Bonds, Series 1991,
6.375%, 7/01/21 Aaa 7/01 at 102 10,849,545
- -----------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 5.2%
6,000,000 Massachusetts Health and Educational Facilities
Authority, Revenue Bonds, Brigham and Women's
Hospital Issue, Series D, 6.750%, 7/01/24 Aaa 7/01 at 102 6,437,400
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) Aaa 6/01 at 102 5,499,299
10,500,000 Massachusetts Health and Educational Facilities
Authority, Revenue Bonds, New England Medical
Center Hospitals Issue, Series F, 6.625%, 7/01/25 Aaa 7/02 at 102 11,180,400
5,850,000 Massachusetts Health and Educational Facilities
Authority, Revenue Bonds, South Shore Hospital
Issue, Series D, 6.500%, 7/01/22 Aaa 7/02 at 102 6,223,815
8,400,000 Massachusetts Health and Educational Facilities
Authority, Revenue Bonds, Berkshire Health
Systems Issue, Series D, 6.000%, 10/01/13 Aaa 10/05 at 102 8,622,012
7,000,000 Massachusetts Health and Educational Facilities
Authority Revenue Bonds, Baystate Medical Center
Issue, Series E, 6.000%, 7/01/26 Aaa 7/06 at 102 7,036,050
6,810,000 Massachusetts Housing Finance Agency, Single
Family Housing Revenue Bonds, Series 11,
7.750%, 12/01/20 (Alternative Minimum Tax) Aa 6/99 at 102 7,139,945
14,095,000 Massachusetts Housing Finance Agency, Single
Family Housing Revenue Bonds, Series 17,
7.150%, 12/01/24 (Alternative Minimum Tax) Aa 6/01 at 102 14,672,331
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MASSACHUSETTS (CONTINUED)
$ 21,785,000 Massachusetts Housing Finance Agency, Insured
Rental Housing Bonds, 1994 Series A,
6.650%, 7/01/19 (Alternative Minimum Tax) Aaa 7/04 at 102 $ 22,552,703
5,000,000 Massachusetts Housing Finance Agency, Housing
Revenue Refunding Bonds, 1995 Series A,
6.100%, 12/01/16 Aaa 12/05 at 102 5,069,750
- -----------------------------------------------------------------------------------------------------------------
MICHIGAN - 5.2%
5,000,000 Michigan State Hospital Finance Authority Hospital
Revenue Refunding Bonds (Sisters of Mercy Health
Corporation Obligated Group), 1993 Series P,
5.250%, 8/15/21 Aaa 8/03 at 102 4,567,800
7,490,000 Michigan State Housing Development Authority,
Rental Housing Revenue Bonds, 1991 Series A,
7.150%, 4/01/10 (Alternative Minimum Tax) A+ 1/02 at 102 7,868,844
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 Aaa 12/01 at 102 10,801,200
12,250,000 The Economic Development Corporation of the City
of Detroit, Resource Recovery Revenue Bonds,
Series 1991A, 6.875%, 5/01/09 (Alternative
Minimum Tax) Aaa 5/01 at 102 13,115,830
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) Aaa 7/01 at 102 22,060,619
13,500,000 City of Detroit, Michigan, Water Supply System
Revenue and Revenue Refunding Bonds, Series
1993, 5.000% 7/01/23 Aaa 7/04 at 102 11,979,360
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) Aaa 5/07 at 37 23/32 1,796,480
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 Aaa 6/03 at 102 7,700,575
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) Aaa 5/06 at 34 17/32 5,874,930
7,590,000 Western Townships Utilities Authority, Sewage
Disposal System Refunding Bonds, Series 1991,
6.500%, 1/01/19 Aaa 1/02 at 100 7,966,464
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
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) AA+ 7/02 at 102 $ 5,196,950
7,170,000 Minnesota Housing Finance Agency, Single Family
Mortgage Bonds, 1994 Series M, 6.700%, 7/01/26
(Alternative Minimum Tax) AA+ 1/04 at 102 7,426,256
- -----------------------------------------------------------------------------------------------------------------
MISSOURI - 0.5%
5,745,000 Missouri Housing Development Commission, Single
Family Mortgage Revenue Bonds (GNMA
Mortgage-Backed Securities Program), 1991
Series C, 6.900%, 7/01/18 AAA 1/02 at 102 6,031,561
3,630,000 Missouri Housing Development Commission, Single
Family Mortgage Revenue Bonds (GNMA
Mortgage-Backed Securities Program), 1989A,
7.900%, 2/01/21 (Alternative Minimum Tax) AAA 2/99 at 102 3,770,517
- -----------------------------------------------------------------------------------------------------------------
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 Aaa 3/02 at 102 27,959,360
- -----------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.2%
2,765,000 Nebraska Investment Finance Authority, Single
Family Mortgage Revenue Bonds, 1988 Series 1,
8.125%, 8/15/38 (Alternative Minimum Tax) Aaa 8/98 at 102 2,877,895
- -----------------------------------------------------------------------------------------------------------------
NEVADA - 3.0%
5,725,000 Nevada Housing Division, Single Family Program
Bonds, 1994 Issue B-1 Senior Bonds,
6.700%, 10/01/17 Aa 4/04 at 102 5,970,259
4,415,000 Nevada Housing Division Alternative Minimum
Tax, 6.950%, 10/01/26 (Alternative Minimum Tax) Aa 4/04 at 102 4,611,291
29,775,000 Clark County, Nevada, Industrial Development
Revenue Bonds (Nevada Power Company Project),
Series 1990, 7.800%, 6/01/20 (Alternative
Minimum Tax) Aaa 6/00 at 102 32,449,093
11,000,000 Clark County, Nevada, Las Vegas-McCarran
International Airport Passenger Facility Charge
Revenue Bonds, 1992 Series A, 6.000%, 7/01/22 Aaa 7/02 at 102 11,110,440
- -----------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.3%
4,950,000 New Hampshire Higher Educational and Health
Facilities Authority, Hospital Revenue Bonds,
Lakes Region Hospital Association Issue, Series
1993, 5.750%, 1/01/11 Aaa 1/03 at 102 4,979,997
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEW JERSEY - 0.2%
$ 3,220,000 New Jersey Turnpike Authority, Turnpike Revenue
Bonds, 1984 Series, 10.375%, 1/01/03 AAA No Opt. Call $ 3,787,622
- -----------------------------------------------------------------------------------------------------------------
NEW YORK - 4.2%
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 Aaa 7/04 at 100 3,100,170
6,400,000 6.750%, 7/01/24 (Pre-refunded to 7/01/04) Aaa 7/04 at 102 7,196,352
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) Aaa 7/99 at 101 7,452,690
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) Aaa 11/98 at 101 19,122,801
3,000,000 State of New York Mortgage Agency, Homeowner
Mortgage Revenue Bonds, Series KK,
7.800%, 10/01/20 (Alternative Minimum Tax) Aa2 10/99 at 102 3,144,930
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) Aaa 8/02 at 101 1/2 8,913,472
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 Aaa 6/06 at 101 9,936,300
15,600,000 Port Authority of New York and New Jersey,
Consolidated Revenue Bonds, Ninety-Seventh
Series, 6.650%, 1/15/23 (Alternative Minimum Tax) Aaa 1/05 at 101 16,608,540
- -----------------------------------------------------------------------------------------------------------------
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) Aaa 12/01 at 102 49,441,950
- -----------------------------------------------------------------------------------------------------------------
OHIO - 3.1%
13,750,000 Ohio Air Quality Development Authority, Air
Quality Development Revenue Refunding Bonds
(JMG Funding Limited Partnership Project), Series
1994, 6.375%, 1/01/29 (Alternative Minimum Tax) Aaa 10/04 at 102 14,271,263
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
OHIO (CONTINUED)
$ 9,490,000 Ohio Housing Finance Agency, Residential Mortgage
Revenue Bonds (GNMA Mortgage-Backed
Securities Program), 1995 Series A-2,
6.625%, 3/01/26 (Alternative Minimum Tax) AAA 3/05 at 102 $ 9,782,672
8,000,000 State of Ohio, Ohio Air Quality Development
Authority, Air Quality Development Revenue
Refunding Bonds (JMG Funding, Limited
Partnership Project), Series 1994, 6.375%, 4/01/29
(Alternative Minimum Tax) Aaa 10/04 at 102 8,303,280
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) Aaa 1/02 at 102 13,619,386
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) Aaa 8/02 at 102 9,740,340
- -----------------------------------------------------------------------------------------------------------------
OKLAHOMA - 3.0%
970,000 Oklahoma Housing Finance Agency, Single Family
Mortgage Revenue Bonds, 1991 Series A,
7.150%, 3/01/07 Aaa 3/01 at 102 1,021,643
44,115,000 Oklahoma Housing Finance Agency, GNMA
Collateralized Single Family Mortgage Revenue
Bonds, Series 1987A, 7.997%, 8/01/18
(Alternative Minimum Tax) AAA No Opt. Call 48,963,386
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) Aaa 9/01 at 102 3,691,162
1,475,000 Tulsa County Home Finance Authority, GNMA
Collateralized Mortgage Revenue Bonds, Series
1991C, 7.100%, 6/01/22 (Alternative Minimum Tax) AAA 12/01 at 102 1,537,938
- -----------------------------------------------------------------------------------------------------------------
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) Aa 7/05 at 102 5,618,635
- -----------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 5.4%
7,000,000 Certificates of Participation, Commonwealth of
Pennsylvania, Harristown Development Corporation,
6.250%, 5/01/16 Aaa 11/01 at 102 7,243,180
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) Aaa 1/02 at 102 15,357,237
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$ 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 Aaa 9/01 at 102 $ 7,633,780
24,800,000 Butler County Hospital Authority (Butler County,
Pennsylvania), Hospital Revenue Bonds, Series
1991 A (North Hills Passavant Hospital),
7.000%, 6/01/22 (Pre-refunded to 6/01/01) Aaa 6/01 at 102 27,234,120
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 Baa1 4/01 at 102 5,319,700
5,000,000 7.375%, 4/01/21 Aaa 4/01 at 102 5,448,650
10,000,000 The Harrisburg Authority (Dauphin County,
Pennsylvania), Commonwealth of Pennsylvania
Lease Bonds, Series of 1991, 6.625%, 6/01/13 Aaa 6/01 at 101 10,772,900
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 Aaa 7/04 at 102 7,383,084
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 Aaa 6/02 at 102 9,590,641
- -----------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 3.9%
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) Aaa 8/01 at 102 5,684,943
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) Aaa 2/11 at 100 20,285,402
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) Aaa 5/01 at 102 42,037,673
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 Aaa 7/04 at 102 2,292,260
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
SOUTH CAROLINA - 1.0%
South Carolina Jobs-Economic Development Authority, Hospital
Facilities Revenue Bonds, Series 1995 (Oconee Memorial
Hospital, Inc.):
$ 3,000,000 6.150%, 3/01/15 AAA 3/05 at 102 $ 3,055,080
775,000 6.150%, 3/01/25 AAA 3/05 at 102 782,037
5,275,000 Lexington County Health Services District, Inc.,
South Carolina, Hospital Revenue Bonds, Series
1991, 6.750%, 10/01/18 Aaa 10/01 at 102 5,674,687
22,000,000 Piedmont Municipal Power Agency (South Carolina),
Electric Revenue Bonds, 1988 Refunding Series,
0.000%, 1/01/13 Aaa No Opt. Call 8,961,888
- -----------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.4%
4,280,000 South Dakota Health and Educational Facilities
Authority, Revenue Bonds, Series 1989 (Rapid
City Regional Hospital), 7.000%, 9/01/14 Aaa 9/99 at 102 4,555,632
2,800,000 South Dakota Health and Educational Facilities
Authority, Revenue Bonds, Series 1990 (McKennan
Hospital Issue), 7.250%, 7/01/15 (Pre-refunded
to 7/01/00) Aaa 7/00 at 102 3,058,244
- -----------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.4%
7,500,000 Metropolitan Nashville Airport Authority
(Tennessee), Airport Improvement Revenue Bonds,
Refunding Series 1991C, 6.600%, 7/01/15 Aaa 7/01 at 102 8,054,775
- -----------------------------------------------------------------------------------------------------------------
TEXAS - 3.9%
14,960,000 Texas Department of Housing and Community
Affairs, Single Family Mortgage Revenue Bonds,
1996 Series D, 6.250%, 9/01/28 (Alternative
Minimum Tax) Aaa 9/06 at 102 15,189,187
9,500,000 Coastal Bend Health Facilities Development
Corporation, Incarnate Word Health Services
Revenue Bonds, Series 1993-A, 6.000%, 11/15/22 Aaa 11/02 at 102 9,536,765
1,565,000 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) AAA 6/00 at 103 1,653,250
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) Aaa 8/09 at 53 26/32 2,498,940
39,000,000 0.000%, 8/15/19 (Pre-refunded to 8/15/09) Aaa 8/09 at 50 8/32 10,108,800
7,280,000 0.000%, 8/15/20 (Pre-refunded to 8/15/09) Aaa 8/09 at 46 29/32 1,761,542
5,085,000 0.000%, 8/15/21 (Pre-refunded to 8/15/09) Aaa 8/09 at 43 25/32 1,148,549
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
City of Houston, Texas, Water and Sewer System, Junior Lien
Revenue Refunding Bonds, Series 1991C:
$ 840,000 6.375%, 12/01/17 (Pre-refunded to 12/01/01) Aaa 12/01 at 102 $ 909,703
14,160,000 6.375%, 12/01/17 Aaa 12/01 at 102 14,744,808
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) Aaa 5/06 at 102 13,672,395
- -----------------------------------------------------------------------------------------------------------------
UTAH - 1.0%
6,510,000 Utah Housing Finance Agency, Multifamily Housing
Refunding Bonds, 1992 Issue A (FHA Insured
Mortgage Loans), 7.400%, 7/01/24 AA 1/02 at 102 6,879,768
4,745,000 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) Aaa 7/04 at 102 4,911,502
6,250,000 Intermountain Power Agency, 7.000%, 7/01/15 Aaa 7/97 at 102 6,406,125
- -----------------------------------------------------------------------------------------------------------------
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 Aaa 6/05 at 102 7,914,240
- -----------------------------------------------------------------------------------------------------------------
WASHINGTON - 5.0%
19,750,000 Washington Health Care Facilities Authority,
Revenue Bonds, Series 1989 (Group Health
Cooperative of Puget Sound, Seattle),
7.200%, 12/01/15 Aaa 12/99 at 102 21,205,575
4,750,000 Washington Public Power Supply System, Nuclear
Project No. 1 Refunding Revenue Bonds, Series
1992A, 6.250%, 7/01/17 Aaa 7/02 at 102 4,863,668
8,500,000 Washington Public Power Supply System, Nuclear
Project No. 3 Refunding Revenue Bonds, Series
1993B, 5.600%, 7/01/17 Aaa 7/03 at 102 8,166,884
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) A+ 9/00 at 102 2,728,800
4,500,000 Public Hospital District No. 1, King County,
Washington (Valley Medical Center), Hospital
Facilities Revenue Bonds, Series 1990,
7.250%, 9/01/15 (Pre-refunded to 9/01/00) Aaa 9/00 at 102 4,930,830
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 24,675,000 Municipality of Metropolitan Seattle (Seattle,
Washington), Limited Sales Tax General Obligation
Bonds, Series 1991 (Refunding), 6.625%, 1/01/17 Aa 7/97 at 102 $ 25,254,615
4,250,000 Public Utility District No. 1 of Snohomish County,
Washington, Generation System Revenue Bonds,
Series 1989, 6.650%, 1/01/16 Aaa No Opt. Call 4,697,907
20,000,000 Public Utility District No 1 of Snohomish County,
Washington, Generation System Revenue Bonds,
Series 1993, 5.500%, 1/01/20 Aaa 1/03 at 100 18,897,800
- -----------------------------------------------------------------------------------------------------------------
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 Aaa 11/02 at 100 5,396,631
4,100,000 West Virginia Water Development Authority, Water
Development Revenue Refunding Bonds (Loan
Program), 1991 Series A, 7.000%, 11/01/25 Aaa 11/01 at 102 4,479,577
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) A+ 5/03 at 102 10,279,800
- -----------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.3%
15,000,000 Wisconsin Health Educational Facilities Authority,
Revenue Bonds, Series 1997 (Marshfield Clinic),
5.750%, 2/15/27 AAA 2/07 at 102 14,674,350
10,000,000 Wisconsin Health and Educational Facilities
Authority, Revenue Bonds, Series 1989 (St. Luke's
Medical Center Project), 7.400%, 8/15/19
(Pre-refunded to 8/15/99) Aaa 8/99 at 102 10,807,800
10,000,000 Wisconsin Health and Educational Facilities
Authority Revenue Bonds, Series 1990A
(Marshfield Clinic Project), 7.250%, 8/01/15 Aaa 8/00 at 102 10,939,800
8,150,000 Wisconsin Health and Educational Facilities
Authority, Revenue Bonds, Series 1991 (St. Luke's
Medical Center Project), 7.100%, 8/15/19 Aaa 8/01 at 102 8,863,776
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) Aaa 12/01 at 102 19,429,640
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
WISCONSIN (CONTINUED)
Wisconsin Health and Educational Facilities
Authority, Revenue Refunding Bonds, Series 1990B
(Waukesha Memorial Hospital, Inc. Project):
$ 3,585,000 7.250%, 8/15/19 (Pre-refunded to 8/15/00) Aaa 8/00 at 102 $ 3,924,857
215,000 7.250%, 8/15/19 Aaa 8/00 at 102 232,362
8,270,000 Wisconsin Housing and Economic Development
Authority, Housing Revenue Bonds, 1992 Series A,
6.850%, 11/01/12 Aaa 11/02 at 102 8,692,513
$1,837,160,000 Total Investments - (cost $1,671,907,690) - 97.9% 1,776,539,349
================
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.6%
$ 7,000,000 Maricopa County, Arizona Pollution Control
Corporation, Pollution Control Revenue Refunding
Bonds (Arizona Public Service Company Palo Verde
Project), 1994 Series F, Variable Rate Demand
Bonds, 3.850%, 5/01/29+ A-1+ 7,000,000
1,300,000 The Commonwealth of Massachusetts, Dedicated
Income Tax Bonds, Fiscal Recovery Loan, Act of
1990, Series B, Variable Rate Demand Bonds,
3.850%, 12/01/97 VMIG-1 1,300,000
2,300,000 The City of New York, General Obligation Bonds,
Fiscal 1995 Series B, Variable Rate Demand Bonds,
3.950%, 8/15/22+ VMIG-1 2,300,000
$ 10,600,000 Total Temporary Investments - 0.6% 10,600,000
================
Other Assets Less Liabilities - 1.5% 28,064,357
Net Assets 100% $1,815,203,706
==============
<PAGE>
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 173 $1,623,088,898 91%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 17 111,470,312 6
PORTFOLIO OF A+ A1 4 31,657,689 2
INVESTMENTS BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 2 10,322,450 1
(EXCLUDING
TEMPORARY
INVESTMENTS):
TOTAL 196 $1,776,539,349 100%
<FN>
All of the bonds in the portfolio, excluding temporary investments in short-term
municipal securities, are either covered by Original Issue Insurance, Secondary
Market Insurance or Portfolio Insurance, or are backed by an escrow or trust
containing sufficient U.S. Government or U.S. Government agency securities, any
of which ensure the timely payment of principal and interest.
* Ratings: Using the higher of Standard &Poor's or Moody's rating.
** Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based
on market conditions or a specified market index.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN PREMIER INSURED MUNICIPAL INCOME FUND, INC. (NIF)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 1.3%
$ 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 Aaa 1/02 at 100 $ 2,230,763
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 Aaa 12/02 at 102 3,247,680
- -----------------------------------------------------------------------------------------------------------------
CALIFORNIA - 17.2%
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) AAA No Opt. Call 1,218,511
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) AAA No Opt. Call 655,767
6,045,000 La Verne-Grand Terrace Housing Finance Agency,
Single Family Residential Mortgage Revenue Bonds,
1984 Series A, 10.250%, 7/01/17 Aaa No Opt. Call 8,966,125
5,840,000 Lancaster Redevelopment Agency, Lancaster
Residential Redevelopment Project Area, Tax
Allocation Refunding Bonds, Issue of 1992,
6.100%, 8/01/19 Aaa 8/01 at 102 5,947,222
5,040,000 Northern California Power Agency, Hydroelectric
Project Number One, Revenue Bonds, 1992
Refunding Series A, 10.000%, 7/01/04 Aaa No Opt. Call 6,536,779
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 Aaa No Opt. Call 6,231,350
1,340,000 Pomona Public Financing Authority, California,
1992 Revenue Bonds, Series A (Water Treatment
Project), 6.100%, 7/01/17 Aaa 7/02 at 102 1,368,287
8,880,000 City of Pomona, California, Single Family Mortgage
Revenue Refunding Bonds (GNMA and FHLMC
Mortgage-Backed Securities), Series 1990B,
7.500%, 8/01/23 Aaa No Opt. Call 11,014,930
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 Aaa No Opt. Call 12,207,715
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) Aaa No Opt. Call 18,335,301
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA (CONTINUED)
$ 2,000,000 City of Santa Barbara, California, Certificates of
Participation (1992 Water System Improvement
Project and Refunding), 6.700%, 4/01/27 Aaa 4/02 at 102 $ 2,150,220
- -----------------------------------------------------------------------------------------------------------------
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) Aaa 12/04 at 100 1,357,925
- -----------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.7%
3,000,000 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) Aaa 11/99 at 102 3,233,280
- -----------------------------------------------------------------------------------------------------------------
FLORIDA - 2.7%
6,920,000 Polk County Industrial Development Authority,
Industrial Development Variable Rate Revenue
Bonds, 1985 Series 2 (Winter Haven Hospital
Project), 6.250%, 9/01/15 Aaa 9/02 at 103 7,185,382
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) Aaa 7/00 at 101 4,557,546
- -----------------------------------------------------------------------------------------------------------------
GEORGIA - 4.4%
3,160,000 Municipal Electric Authority of Georgia, Power
Revenue Bonds, Series O, 7.800%, 1/01/20 Aaa 1/98 at 102 3,286,811
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 Aaa 1/03 at 103 4,138,909
10,000,000 8.000%, 1/01/15 Aaa 1/03 at 103 11,731,700
- -----------------------------------------------------------------------------------------------------------------
ILLINOIS - 11.8%
6,635,000 Illinois Health Facilities Authority Revenue Bonds,
Series 1989 (Memorial Medical Center Project),
6.500%, 10/01/16 Aaa 10/00 at 102 6,992,693
2,260,000 City of Carbondale, Illinois, Hospital Revenue
Refunding Bonds (Southern Illinois Hospital
Services), Series 1987, 6.875%, 3/01/15 Aaa 3/99 at 100 2,326,783
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) Aaa 7/02 at 101 1/2 11,023,400
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 8,200,000 Board of Education of the City of Chicago, General
Obligation Lease Certificates, 1992 Series A,
6.250%, 1/01/15 Aaa No Opt. Call $ 8,749,400
2,600,000 The County of Cook, Illinois, General Obligation
Bonds, Series 1991, 6.250%, 11/01/21 Aaa 11/01 at 102 2,661,932
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 Aaa 7/02 at 102 10,691,909
3,225,000 Regional Transportation Authority, Cook, DuPage,
Kane, Lake, McHenry and Will Counties, Illinois,
General Obligation Bonds, Series 1992A,
9.000%, 6/01/09 Aaa No Opt. Call 4,250,679
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) Aaa 12/02 at 102 4,215,920
- -----------------------------------------------------------------------------------------------------------------
INDIANA - 4.1%
2,500,000 Indiana Bond Bank, Special Program Bonds, Series
1985A, 9.000%, 8/01/09 (Pre-refunded to 2/01/99) Aaa 2/99 at 101 1/2 2,772,375
5,375,000 Indiana Health Facility Financing Authority, Hospital
Revenue Refunding and Improvement Bonds,
Series 1992 (Community Hospitals Projects),
6.400%, 5/01/12 Aaa 5/02 at 102 5,614,940
2,000,000 Fremont Middle School Bldg. Corp., First Mortgage
Bonds, Series 1992, Fremont, Indiana,
6.750%, 3/15/13 (Pre-refunded to 3/15/02) Aaa 3/02 at 101 2,179,360
7,000,000 Southwest Allen Multi School Bldg. Corp., First
Mortgage Refunding Bonds, Series 1992 B, Fort
Wayne, Indiana, 6.375%, 1/15/09 Aaa 1/02 at 101 7,377,440
- -----------------------------------------------------------------------------------------------------------------
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 Aaa 8/02 at 102 6,730,685
- -----------------------------------------------------------------------------------------------------------------
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 Aaa 2/02 at 102 5,274,200
4,000,000 6.450%, 2/01/22 Aaa 2/02 at 102 4,207,160
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MARYLAND - 0.6%
$ 3,000,000 Maryland Health and Higher Educational Facilities
Authority, Refunding Revenue Bonds, Francis
Scott Key Medical Center Issue, Series 1993,
5.000%, 7/01/23 Aaa 7/03 at 102 $ 2,691,630
- -----------------------------------------------------------------------------------------------------------------
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 Aaa 7/02 at 102 8,875,108
3,000,000 Framingham Housing Authority, Massachusetts,
Mortgage Revenue Bonds (GNMA Collateralized-
Beaver Terrace Apartments Project), Series 1992A,
6.650%, 2/20/32 AAA 8/01 at 102 3,094,440
- -----------------------------------------------------------------------------------------------------------------
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 Aaa 5/05 at 100 1,947,780
- -----------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.4%
1,935,000 Minnesota Housing Finance Agency, Rental Housing
Bonds, 1995 Series D (Non-AMT), 5.950%, 2/01/18 Aaa 2/05 at 102 1,930,221
- -----------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.8%
3,300,000 Mississippi Home Corporation, Single Family Senior
Revenue Refunding Bonds, Series 1990A,
9.250%, 3/01/12 Aaa 9/00 at 103 3,538,557
- -----------------------------------------------------------------------------------------------------------------
MISSOURI - 3.0%
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) AAA 8/07 at 100 10,920,890
2,250,000 The Industrial Development Authority of The City
of University City, Missouri, Multifamily Housing
Revenue Refunding Bonds (GNMA Collateralized-
Canterbury Gardens Project), Series 1995A,
6.000%, 12/20/30 AAA 12/05 at 102 2,256,818
- -----------------------------------------------------------------------------------------------------------------
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 Aaa 3/02 at 102 13,979,680
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEBRASKA - 0.4%
$ 1,700,000 Nebraska Investment Finance Authority, Single
Family Mortgage Revenue Bonds, 1988 Series 1,
8.125%, 8/15/38 (Alternative Minimum Tax) Aaa 8/98 at 102 $ 1,769,411
- -----------------------------------------------------------------------------------------------------------------
NEVADA - 2.6%
6,000,000 Humboldt County, Nevada, Variable Rate Demand
Pollution Control Refunding Revenue Bonds (Sierra
Pacific Power Company Project), Series 1987,
6.550%, 10/01/13 Aaa 10/02 at 102 6,400,980
4,500,000 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 Aaa 7/02 at 102 4,702,860
- -----------------------------------------------------------------------------------------------------------------
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 Aaa 10/06 at 102 3,013,350
- -----------------------------------------------------------------------------------------------------------------
NEW YORK - 5.6%
7,645,000 Metropolitan Transportation Authority, Transit
Facilities Revenue Bonds, Series J, 9.100%, 7/01/05 Aaa No Opt. Call 9,605,178
1,425,000 The City of New York, General Obligation Bonds,
Fiscal 1990 Series H, 7.875%, 8/01/00 Aaa No Opt. Call 1,559,435
The City of New York, General Obligation Bonds,
1992 Series C:
6,665,000 6.625%, 8/01/14 (Pre-refunded to 8/01/02) Aaa 8/02 at 101 1/2 7,302,774
335,000 6.625%, 8/01/14 Aaa 8/02 at 101 1/2 360,741
The City of New York, General Obligation Bonds, Fiscal 1992
Series C, Subseries C-1:
4,950,000 6.625%, 8/01/15 (Pre-refunded to 8/01/02) Aaa 8/02 at 101 1/2 5,423,666
50,000 6.625%, 8/01/15 Aaa 8/02 at 101 1/2 53,842
- -----------------------------------------------------------------------------------------------------------------
OHIO - 0.6%
2,690,000 County of Cuyahoga, Ohio, Hospital Improvement
and Refunding Revenue Bonds, Series 1997 (The
MetroHealth System Project), 5.500%, 2/15/27 Aaa 2/07 at 102 2,577,773
- -----------------------------------------------------------------------------------------------------------------
OKLAHOMA - 4.1%
9,240,000 Oklahoma Housing Finance Agency, GNMA
Collateralized Single Family Mortgage Revenue
Bonds, Series 1987A, 7.997%, 8/01/18 (Alternative
Minimum Tax) AAA No Opt. Call 10,262,960
4,285,000 Tulsa International Airport, General Revenue Bonds,
Series 1989, 7.700%, 6/01/09 (Alternative
Minimum Tax) (Pre-refunded to 6/01/97) Aaa 6/97 at 102 1/2 4,406,051
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
OKLAHOMA (CONTINUED)
$ 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 Aaa 11/05 at 103 $ 3,076,710
- -----------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 8.0%
13,480,000 County of Allegheny, Pennsylvania, Airport Revenue
Bonds, Series 1988C (Greater Pittsburgh
International Airport), 8.250%, 1/01/16
(Alternative Minimum Tax) Aaa 1/98 at 102 14,075,007
19,140,000 Montgomery County Industrial Development
Authority, Pollution Control Revenue Refunding
Bonds, 1992 Series A (Philadelphia Electric
Company Project), 6.625%, 6/01/22 Aaa 6/02 at 102 20,510,041
- -----------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 4.8%
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) Aaa 8/02 at 102 13,988,535
4,000,000 State of Rhode Island and Providence Plantations,
General Obligation Bonds, Consolidated Capital
Development Loan of 1993, Refunding Series,
7.000%, 6/15/05 Aaa No Opt. Call 4,498,680
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) Aaa 5/01 at 102 2,066,535
- -----------------------------------------------------------------------------------------------------------------
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) Aaa 7/02 at 102 10,304,375
- -----------------------------------------------------------------------------------------------------------------
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 Aaa 8/03 at 102 2,042,691
- -----------------------------------------------------------------------------------------------------------------
TEXAS - 6.8%
1,000,000 Board of Regents of Texas Southern University,
Consolidated Revenue Refunding Bonds,
Series 1993-A, 5.750%, 8/01/18 Aaa 8/03 at 101 994,440
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) Aaa 4/03 at 102 5,026,200
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
$ 2,085,000 Corpus Christi Housing Finance Corporation, Single
Family Mortgage Senior Revenue Refunding Bonds,
Series 1991A, 7.700%, 7/01/11 Aaa 7/01 at 103 $ 2,267,438
1,850,000 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) Aaa 6/02 at 103 1,985,457
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) Aaa 8/02 at 102 5,691,196
940,000 6.500%, 8/15/17 Aaa 8/02 at 102 1,009,908
Harris County, Texas, Toll Road Senior Lien Revenue
Refunding Bonds, Series 1992B:
7,400,000 6.625%, 8/15/17 (Pre-refunded to 8/15/97) Aaa 8/97 at 102 7,607,644
1,600,000 6.625%, 8/15/17 Aaa 8/97 at 102 1,644,224
3,000,000 Rio Grande Valley Health Facilities Development
Corporation (Texas), Hospital Revenue Bonds
(Valley Baptist Medical Center Project),
Series 1992A, 6.375%, 8/01/22 Aaa 8/02 at 102 3,114,090
- -----------------------------------------------------------------------------------------------------------------
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 Aaa 4/02 at 100 1,548,228
- -----------------------------------------------------------------------------------------------------------------
WASHINGTON - 2.3%
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 Aaa 12/02 at 100 1,161,068
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) Aaa 12/02 at 100 2,174,720
4,750,000 6.700%, 12/01/09 (Pre-refunded to 12/01/02) Aaa 12/02 at 100 5,176,454
1,325,000 City of Richland, Washington, Electric Revenue
Bonds, 1992, 6.700%, 11/01/11 Aaa 11/02 at 100 1,416,770
- -----------------------------------------------------------------------------------------------------------------
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 Aaa 6/02 at 102 6,480,540
$385,000,000 Total Investments - (cost $398,445,783) - 98.3% 425,206,175
================
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.2%
$ 900,000 Port Authority of Cincinnati and Hamilton County,
================
Daily Adjustable Economic Development Revenue
Bonds (Kenwood Office Associates Project),
Series 1985, Variable Rate Demand Bonds,
4.150%, 9/01/25+ A-2 $ 900,000
Other Assets Less Liabilities - 1.5% 6,405,813
Net Assets - 100% $432,511,988
============
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 80 $425,206,175 100%
RATINGS*
PORTFOLIO OF
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
TOTAL 80 $425,206,175 100%
<FN>
All of the bonds in the portfolio, excluding temporary investments in short-term
municipal securities, are either covered by Original Issue Insurance, Secondary
Market Insurance or Portfolio Insurance, or are backed by an escrow or trust
containing sufficient U.S. Government or U.S. Government agency securities, any
of which ensure the timely payment of principal and interest.
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
** Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based
on market conditions or a specified market index.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN INSURED PREMIUM INCOME MUNICIPALFUND 2 (NPX)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 0.8%
$ 2,500,000 City of Mobile, Alabama, General Obligation
Refunding Warrants, Series 1996, 5.750%, 2/15/16 Aaa 2/06 at 102 $ 2,516,750
1,600,000 City of Northport (Alabama), General Obligation
Warrants, Series 1996-B, 5.700%, 3/01/21 Aaa 3/06 at 102 1,592,624
2,000,000 City of Scottsboro (Alabama), General Obligation
School Warrants, Series 1996-B, 5.750%, 7/01/14 Aaa 7/06 at 102 2,008,820
- -----------------------------------------------------------------------------------------------------------------
ALASKA - 1.0%
4,200,000 Alaska Housing Finance Corporation, Mortgage
Revenue Bonds, 1996 Series A, 6.050%, 12/01/17 Aaa 6/06 at 102 4,203,108
3,000,000 Municipality of Anchorage, Alaska, 1989 General
Obligation Refunding Water Bonds,
6.250%, 6/01/23 Aaa 6/99 at 100 3,029,190
- -----------------------------------------------------------------------------------------------------------------
ARIZONA - 0.4%
2,700,000 Glendale Union High School District No. 205 of
Maricopa County, Arizona, School Improvement
Bonds (Projects of 1993), Series B (1995),
5.700%, 7/01/14 Aaa 7/05 at 101 2,715,687
- -----------------------------------------------------------------------------------------------------------------
CALIFORNIA - 8.2%
6,590,000 California Housing Finance Agency, Multi-Unit
Rental Housing Revenue Bonds, 1992 Series A,
6.625%, 2/01/24 (Alternative Minimum Tax) A1 2/03 at 102 6,731,092
2,500,000 California Housing Finance Agency Home Mortgage
Revenue Bonds, 1996 Series D, 6.150%, 8/01/28
(Alternative Minimum Tax) Aaa 8/07 at 102 2,518,975
6,500,000 California Housing Finance Agency Multifamily
Housing Revenue Bonds III, 1997 Series A,
5.950%, 8/01/28 (Alternative Minimum Tax) Aaa 2/07 at 102 6,480,955
10,355,000 State of California Various Purpose General
Obligation Bonds, 11.000%, 8/01/03 Aaa No Opt. Call 13,697,076
Central Coast Water Authority Refunding Revenue
Bonds (State Water Project Regional Facilities),
Series 1996B:
1,020,000 5.800%, 10/01/16 Aaa 10/06 at 100 1,021,775
2,800,000 5.850%, 10/01/22 Aaa 10/06 at 100 2,794,316
3,000,000 M-S-R Public Power Agency, California, San Juan
Project Revenue Bonds, Series F, 6.000%, 7/01/20 Aaa 7/03 at 102 3,033,450
3,500,000 Northern California Power Agency, Hydroelectric
Project Number One, Revenue Bonds, 1993
Refunding Series A, 5.500%, 7/01/16 Aaa 7/03 at 102 3,377,185
6,850,000 County of Orange, California, 1996 Recovery
Certificates of Participation, Series A,
6.000%, 7/01/26 Aaa 7/06 at 102 6,929,940
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA (CONTINUED)
San Leandro Housing Finance Corporation Mortgage Revenue
Refunding Bonds, Series 1993A (FHA-Insured Mortgage
Loan-Ashland Village Apartments Section 8 Assisted Project):
$ 1,875,000 6.550%, 1/01/12 Aaa 1/02 at 102 $ 1,950,619
5,100,000 6.650%, 1/01/25 Aaa 1/02 at 102 5,290,791
8,000,000 The Regents of the University of California
Refunding Revenue Bonds (1989 Multiple Purpose
Projects), Series C, 5.000%, 9/01/14 Aaa 9/03 at 102 7,367,040
- -----------------------------------------------------------------------------------------------------------------
COLORADO - 1.3%
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) Aaa 12/06 at 101 9,533,765
- -----------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 3.8%
5,000,000 District of Columbia (Washington, D.C.), General
Obligation Refunding Bonds, Series 1994A,
6.500%, 6/01/09 Aaa No Opt Call 5,469,350
5,000,000 District of Columbia (Washington, D.C.), General
Obligation Refunding Bonds, Series 1993B,
5.500%, 6/01/12 Aaa No Opt. Call 4,845,400
5,000,000 District of Columbia, Hospital Improvement and
Refunding Revenue Bonds (Children's Hospital
Issue), Series 1992A, 6.250%, 7/15/19 Aaa 7/02 at 102 5,096,600
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) AAA 6/03 at 102 3,819,885
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 Aaa 7/03 at 102 4,037,335
5,250,000 District of Columbia University Revenue Bonds
(The Catholic University of America Issue), Series
1993, 6.450%, 10/01/23 AAA 10/03 at 102 5,423,303
- -----------------------------------------------------------------------------------------------------------------
FLORIDA - 2.2%
2,000,000 Florida Housing Finance Agency, Housing
Revenue Bonds, 1996 Series K-1 (Mariner Club
Apartments Project), 6.250%, 9/01/26 (Alternative
Minimum Tax) Aaa 9/06 at 102 2,027,360
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
FLORIDA (CONTINUED)
$ 5,250,000 State of Florida, Department of Environmental
Protection, Preservation 2000 Revenue Bonds,
Series 1994A, 4.750%, 7/01/12 Aaa 7/04 at 101 $ 4,725,420
7,000,000 Dade County, Florida Water and Sewer System
Revenue Refunding Bonds, Series 1993,
5.000%, 10/01/13 Aaa 10/03 at 102 6,534,710
3,000,000 Jacksonville Port Authority (Jacksonville, Florida),
1996 Port Facilities Revenue Refunding Bonds,
5.625%, 11/01/18 (Alternative Minimum Tax) Aaa 11/06 at 102 2,912,640
- -----------------------------------------------------------------------------------------------------------------
GEORGIA - 3.1%
3,000,000 Municipal Electric Authority of Georgia, Power
Revenue Bonds, Series EE, 6.000%, 1/01/22 Aaa 1/04 at 102 3,028,950
2,000,000 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) AAA 9/06 at 102 2,012,740
18,000,000 County Board of Education of Richmond County
(Georgia), General Obligation School Bonds,
Series 1997, 5.950%, 11/01/26 Aaa 5/98 at 100 18,025,020
- -----------------------------------------------------------------------------------------------------------------
ILLINOIS - 20.7%
8,000,000 Illinois Development Finance Authority Pollution
Control Revenue Refunding Bonds, 1987 Series A
(Illinois Power Company Project), 8.300%, 4/01/17 Aaa 4/98 at 102 8,426,560
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 Aaa No Opt. Call 4,185,448
4,340,000 7.750%, 12/30/04 Aaa No Opt. Call 5,063,348
6,000,000 Illinois Educational Facilities Authority Revenue
Bonds, Illinois Wesleyan University, Series 1997,
5.650%, 9/01/26 Aaa 9/07 at 102 5,803,560
1,950,000 Illinois Health Facilities Authority Health Facilities
Refunding Revenue Bonds (SSM Health Care),
Series 1992AA, 6.550%, 6/01/14 Aaa No Opt. Call 2,134,958
Illinois Health Facilities Authority (Lutheran General
Health System), Revenue Bonds, Series 1993A:
4,355,000 6.125%, 4/01/12 Aaa No Opt. Call 4,650,922
5,000,000 6.250%, 4/01/18 Aaa No Opt. Call 5,319,350
5,000,000 Illinois Health Facilities Authority, FHA Insured
Mortgage Revenue Bonds, Series 1996 (Sinai
Health System), 6.000%, 2/15/24 Aaa 2/06 at 102 5,021,150
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 1,250,000 Illinois Health Facilities Authority, Revenue
Refunding Bonds, Series 1997 (Little Company of
Mary Hospital), 5.500%, 8/15/21 Aaa 8/07 at 102 $ 1,175,800
1,770,000 Illinois Health Facilities Authority Revenue Bonds,
Series 1991 (Elmhurst Memorial Hospital),
6.625%, 1/01/22 Aaa 1/02 at 102 1,877,952
4,000,000 Illinois Housing Development Authority Housing
Development Bonds, 1993 Series A,
6.000%, 7/01/18 A1 1/04 at 102 3,994,840
4,000,000 State of Illinois, Build Illinois Bonds (Sales Tax
Revenue Bonds), Series W, 5.000%, 6/15/16 Aaa 6/06 at 101 3,665,280
4,000,000 The Illinois State Toll Highway Authority, Toll
Highway Priority Revenue Bonds, 1992 Series A,
6.200%, 1/01/16 Aaa 1/03 at 102 4,091,320
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 Aaa 1/05 at 100 2,509,125
1,500,000 City of Chicago, General Obligation Bonds, Project
Series 1995, 6.125%, 1/01/16 Aaa 7/05 at 102 1,531,710
19,575,000 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 1997,
5.750%, 12/01/27 (WI) Aaa 12/07 at 102 19,146,699
City of Chicago, Chicago Midway Airport Revenue
Bonds, 1994 Series A:
1,100,000 6.100%, 1/01/08 (Alternative Minimum Tax) Aaa 1/04 at 102 1,145,694
2,750,000 6.250%, 1/01/14 (Alternative Minimum Tax) Aaa 1/04 at 102 2,812,453
5,000,000 City of Chicago, Chicago Midway Airport Revenue
Bonds, 1996 Series B, 5.750%, 1/01/22
(Alternative Minimum Tax) Aaa 1/07 at 101 4,861,600
3,530,000 City of Chicago, Motor Fuel Tax Revenue Bonds,
Refunding Series 1993, 5.375%, 1/01/14 Aaa No Opt. Call 3,427,630
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) Aaa 1/02 at 102 9,606,150
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 Aaa 1/05 at 102 8,627,480
3,500,000 City of Chicago, Chicago-O'Hare International
Airport Passenger Facility Charge Revenue Bonds,
Series 1996A, 5.625%, 1/01/15 Aaa 1/06 at 102 3,436,335
1,735,000 City of Chicago Sales Tax Revenue Bonds, Series
1997, 6.000%, 1/01/08 Aaa No Opt. Call 1,842,310
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 2,000,000 City of Chicago Wastewater Transmission Revenue
Bonds, Refunding Series 1993, 5.125%, 1/01/20 Aaa 1/03 at 100 $ 1,797,080
5,000,000 The County of Cook, Illinois, General Obligation
Bonds, Series 1992A, 6.600%, 11/15/22 Aaa 11/02 at 102 5,374,550
3,000,000 Community College District No. 508, Cook
County, Illinois, Certificates of Participation,
8.750%, 1/01/06 Aaa No Opt. Call 3,705,720
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 Aaa No Opt. Call 16,815,486
2,600,000 Community Unit School District Number 115
Kendall and Kane Counties, Illinois (Yorkville),
School Bonds, Series 1996, 7.000%, 1/01/07 Aaa No Opt. Call 2,916,160
165,000 Metropolitan Pier and Exposition Authority
(Illinois), McCormick Place Expansion Project
Bonds, Series 1992A, 6.500%, 6/15/22 Aaa 6/03 at 102 174,961
6,335,000 Metropolitan Pier and Exposition Authority
(Illinois), McCormick Place Expansion Project
Bonds, Series 1922A, 6.500%, 6/15/22
(Pre-refunded to 6/15/03) Aaa 6/03 at 102 6,957,731
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) AAA 10/05 at 105 4,095,353
- -----------------------------------------------------------------------------------------------------------------
INDIANA - 2.6%
2,220,000 Indiana Municipal Power Agency, Power Supply
System Revenue Bonds, 1993 Series A,
6.125%, 1/01/19 Aaa 1/03 at 102 2,241,379
4,525,000 Indiana Transportation Finance Authority Airport
Facilities Lease Revenue Refunding Bonds, 1996
Series A, 6.000%, 11/01/10 Aaa No Opt. Call 4,780,708
2,000,000 Indiana Transportation Finance Authority
Highway Revenue Refunding Bonds, Series
1996B, 6.000%, 12/01/06 Aaa No Opt. Call 2,121,800
1,000,000 Fort Wayne South Side School Bldg. Corp., First
Mortgage Bonds, Series 1994, Allen County,
Indiana, 6.125%, 1/15/12 Aaa 1/04 at 102 1,034,300
9,770,000 Northwest Allen Building Corporation First
Mortgage Bonds, Series 1995 Allen County,
Indiana, 5.500%, 6/01/15 Aaa 6/05 at 102 9,513,049
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
KANSAS - 0.8%
$ 3,125,000 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) Aaa 2/05 at 105 $ 3,459,406
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) Aaa 11/04 at 105 2,578,308
- -----------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.3%
2,500,000 Louisiana Public Facilities Authority Revenue Bonds
(Louisiana Department of Health and Hospitals
Medical Center of Louisiana at New Orleans
Project), Series 1992, 6.250%, 10/15/10 AAA 10/02 at 100 2,593,850
- -----------------------------------------------------------------------------------------------------------------
MAINE - 0.3%
1,745,000 Maine Turnpike Authority, Turnpike Revenue Bonds,
Series 1994, 7.500%, 7/01/09 Aaa No Opt. Call 2,077,231
- -----------------------------------------------------------------------------------------------------------------
MARYLAND - 1.2%
8,605,000 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) Aaa 7/04 at 102 8,864,957
- -----------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.9%
5,000,000 Massachusetts Housing Finance Agency, Housing
Project Revenue, 6.150%, 10/01/15 Aaa 4/03 at 102 5,071,550
8,795,000 Massachusetts Housing Finance Agency Single
Family Housing Revenue Bonds, Series 4B,
6.350%, 6/01/26 (Alternative Minimum Tax) Aaa 6/06 at 102 8,962,633
- -----------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.1%
10,000,000 Michigan State Housing Development Authority,
Rental Housing Revenue Bonds, 1997 Series A
(AMT), 6.000%, 4/01/16 (Alternative Minimum Tax) Aaa 4/07 at 102 10,016,300
2,650,000 Imlay City Community Schools, County of Lapeer,
State of Michigan 1994 Refunding Bonds (General
Obligation-Unlimited Tax), 5.400%, 5/01/17 Aaa 5/06 at 100 2,542,119
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) Aaa 9/03 at 103 10,485,800
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MINNESOTA - 0.9%
$ 4,830,000 Minnesota Housing Finance Agency, Rental Housing
Bonds, 1995 Series D (Non-AMT), 5.950%, 2/01/18 Aaa 2/05 at 102 $ 4,818,070
2,000,000 Minnesota Housing Finance Agency, Single Family
Mortgage Bonds, 1996 Series H, 6.000%, 1/01/21 AA+ 1/06 at 102 2,009,180
- -----------------------------------------------------------------------------------------------------------------
MISSOURI - 3.5%
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 Aaa 2/02 at 102 3,533,740
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) Aaa 12/06 at 102 1,027,580
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 AAA 9/06 at 102 1,004,840
8,000,000 City of Kansas City, Missouri, General Improvement
Airport Refunding Revenue Bonds, Series 1995,
6.750%, 9/01/09 Aaa 9/05 at 101 8,838,720
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 Aaa 12/05 at 102 4,553,595
1,000,000 Kansas City Municipal Assistance Corporation
Leasehold Revenue Capital Improvement Bonds
(Kansas City, Missouri, Lessee), Series 1996B,
5.750%, 1/15/14 Aaa 1/06 at 101 1,004,270
1,500,000 Francis Howell School District Educational Facilities
Authority Leasehold Revenue Bonds, Series 1996
(Francis Howell School District, St. Charles County,
Missouri Project), 5.200%, 3/01/09 Aaa 3/06 at 100 1,471,590
3,310,000 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 AAA 4/07 at 102 3,321,122
1,500,000 The Curators of the University of Missouri, Health
Facilities Revenue Bonds (University of Missouri
Health System), Series 1996A, 5.250%, 11/01/11 Aaa 11/06 at 102 1,465,050
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEVADA - 3.8%
$ 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 Aaa No Opt. Call $ 3,450,356
5,000,000 Clark County, Nevada, Industrial Development
Revenue Bonds (Nevada Power Company Project),
Series 1992A, 6.700%, 6/01/22 (Alternative
Minimum Tax) Aaa 6/02 at 102 5,286,350
Clark County School District, Nevada, General
Obligation (Limited Tax), School Improvement
Bonds, Series May 1, 1995A:
7,295,000 7.250%, 6/15/03 Aaa No Opt. Call 8,128,089
8,320,000 7.250%, 6/15/04 Aaa No Opt. Call 9,372,563
2,490,000 University and Community College System of Nevada,
University Refunding Revenue Bonds, Series
January 1, 1994, 5.600%, 7/01/13 Aaa 7/03 at 101 2,473,317
- -----------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.5%
15,495,000 New Jersey Economic Development Authority, Gas
Facilities Revenue Bonds, 1991 Series,
(Elizabethtown Gas Company Project),
6.750%, 10/01/21 (Alternative Minimum Tax) Aaa 10/98 at 100 15,832,946
2,500,000 New Jersey Housing and Mortgage Finance Agency,
Multi-Family Housing Revenue Bonds, 1995
Series A, 6.000%, 11/01/14 Aaa 5/05 at 102 2,543,225
10,000,000 New Jersey Housing and Mortgage Finance Agency,
Revenue Bonds (Home Buyer), 1996 Series S,
6.050%, 10/01/28 (Alternative Minimum Tax) Aaa 4/07 at 101 1/2 10,033,100
New Jersey Turnpike Authority, Turnpike Revenue
Bonds, Series 1991, C:
3,000,000 6.500%, 1/01/08 Aaa No Opt. Call 3,330,300
2,000,000 6.500%, 1/01/16 Aaa No Opt. Call 2,215,240
- -----------------------------------------------------------------------------------------------------------------
NEW YORK - 7.2%
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 Aaa 2/06 at 102 5,226,653
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 Aaa 2/05 at 102 3,261,090
2,500,000 6.800%, 8/15/24 Aaa 2/05 at 102 2,725,375
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$ 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 Aaa 2/05 at 102 $ 6,311,868
3,000,000 New York State Thruway Authority, Highway and
Bridge Trust Fund Bonds, Series 1995B,
6.000%, 4/01/05 Aaa No Opt. Call 3,183,000
4,090,000 Metropolitan Transportation Authority Commuter
Facilities Revenue Bonds, Series 1994A,
8.000%, 7/01/07 Aaa No Opt. Call 4,934,749
4,985,000 Metropolitan Transportation Authority, Transit
Facilities Revenue Bonds, Series O,
8.000%, 7/01/07 Aaa No Opt. Call 6,016,795
5,000,000 Metropolitan Transportation Authority, Transit
Facilities Revenue Bonds, Series K, 6.300%, 7/01/06 Aaa No Opt. Call 5,406,100
4,000,000 The City of New York, General Obligation Bonds,
Fiscal 1995 Series E, 8.000%, 8/01/05 Aaa No Opt. Call 4,747,760
2,500,000 The City of New York General Obligation Bonds,
Fiscal 1993 Series A, 5.750%, 8/01/10 Aaa 8/02 at 101 1/2 2,523,325
5,000,000 The City of New York General Obligation Bonds,
Fiscal 1997 Series E, 6.000%, 8/01/08 Aaa 8/06 at 101 1/2 5,284,650
1,070,000 City of Niagara Falls, Niagara County, New York,
Public Improvement (Serial), Bonds, 1994,
7.500%, 3/01/09 Aaa No Opt. Call 1,268,667
2,825,000 The Port Authority of New York and New Jersey
Consolidated Bonds, 105th Series, 5.750%, 3/01/16
(Alternative Minimum Tax) Aaa 3/06 at 101 2,807,090
- -----------------------------------------------------------------------------------------------------------------
OHIO - 3.0%
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 Aaa 6/02 at 103 6,260,650
6,595,000 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) AAA 9/99 at 102 6,936,093
2,000,000 City of Cleveland, Ohio, Waterworks Improvements
First Mortgage Revenue Bonds, Series F, 1992,
6.250%, 1/01/15 Aaa 1/02 at 102 2,082,060
5,000,000 Fairfield City School District, County of Butler,
Ohio, School Improvement Bonds, Series 1995,
6.000%, 12/01/20 Aaa 12/05 at 100 5,095,350
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
OHIO (CONTINUED)
$ 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 Aaa No Opt. Call $ 2,294,078
- -----------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.1%
8,425,000 McGee Creek Authority Water Revenue Bonds,
Series 1992 (Oklahoma), 6.000%, 1/01/23 Aaa No Opt. Call 8,838,836
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) Aaa 9/01 at 102 6,591,360
- -----------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 5.2%
4,000,000 Allegheny County Residential Finance Authority,
Single Family Mortgage Revenue Bonds, 1996
Series AA, 6.450%, 5/01/28 (Alternative
Minimum Tax) Aaa 11/06 at 102 4,087,960
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 Aaa 11/05 at 102 5,988,540
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) Aaa 12/04 at 102 1,100,940
2,680,000 The School District of Philadelphia, Pennsylvania,
General Obligation Refunding Bonds, Series A of
1995, 6.250%, 9/01/08 Aaa No Opt. Call 2,910,132
8,400,000 City of Philadelphia, Pennsylvania, Water and
Wastewater Revenue Bonds, Series 1993,
5.750%, 6/15/13 Aaa 6/03 at 102 8,423,688
City of Philadelphia, Pennsylvania, Water and
Wastewater Revenue Bonds, Series 1993:
3,700,000 5.500%, 6/15/14 Aaa 6/03 at 102 3,613,568
10,000,000 5.000%, 6/15/16 Aaa 6/03 at 100 9,066,100
4,000,000 University of Pittsburgh-Of the Commonwealth
System of Higher Education, University Capital
Project Bonds (Pennsylvania), 1992 Series A,
6.125%, 6/01/21 Aaa 6/02 at 102 4,070,920
- -----------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.9%
6,500,000 Piedmont Municipal Power Agency (South Carolina),
Electric Revenue Bonds, 1992 Refunding Series,
6.300%, 1/01/22 Aaa 1/03 at 102 6,749,145
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TENNESSEE - 0.3%
$ 2,000,000 Knoxville's Community Development Corporation
Multifamily Mortgage Revenue Bonds
(GNMAMortgage-Backed Security Program-
Morningside Gardens Project), Series 1993,
6.200%, 7/20/28 AAA 7/03 at 101 $ 2,017,700
- -----------------------------------------------------------------------------------------------------------------
TEXAS - 1.4%
State of Texas, Veterans' Housing Assistance Bonds,
Series 1993, General Obligation Bonds:
8,650,000 6.800%, 12/01/23 (Alternative Minimum Tax) Aaa 12/03 at 102 9,025,929
1,730,000 6.800%, 12/01/23 (Alternative Minimum Tax) Aa 12/03 at 102 1,798,179
- -----------------------------------------------------------------------------------------------------------------
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) Aaa 11/03 at 102 3,579,731
- -----------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.4%
3,250,000 Virginia Housing Development Authority,
Multifamily Housing Revenue Bonds, Series B,
6.050%, 5/01/17 (Alternative Minimum Tax) (WI) Aaa 5/08 at 102 3,252,534
- -----------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.3%
6,130,000 Washington Health Care Facilities Authority,
Revenue Bonds, Series 1992 (Swedish Hospital
Medical Center, Seattle), 6.300%, 11/15/22 Aaa 11/02 at 102 6,294,222
8,100,000 Washington Health Care Facilities Authority Revenue
Bonds, Series 1992 (Virginia Mason Obligated
Group, Seattle), 6.300%, 2/15/17 Aaa 2/03 at 102 8,352,720
20,100,000 Washington Public Power Supply System, Nuclear
Project No. 1 Refunding Revenue Bonds, Series
1993A, 5.700%, 7/01/17 Aaa 7/03 at 102 19,615,991
3,750,000 Washington Public Power Supply System, Nuclear
Project No. 1 Refunding Revenue Bonds, Series
1993B, 5.600%, 7/01/15 Aaa 7/03 at 102 3,651,337
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 Aaa 7/06 at 102 10,533,390
5,535,000 Washington Public Power Supply System, Nuclear
Project No. 3, Refunding Revenue Bonds, Series
1989A, 6.000%, 7/01/18 Aaa 7/99 at 100 5,545,017
6,295,000 Washington Public Power Supply System, Nuclear
Project No. 3 Refunding Revenue Bonds, Series
1993B, 5.600%, 7/01/17 Aaa 7/03 at 102 6,048,298
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 4,340,000 City of Tacoma, Washington, Sewer Revenue
Refunding Bonds, 1994 Series B, 8.000%, 12/01/07 Aaa No Opt. Call $ 5,281,780
2,500,000 City of Tacoma, Washington, Sewer Revenue Bonds,
1995 Series B, 6.375%, 12/01/15 Aaa 12/05 at 100 2,622,674
1,465,000 Yakima School District No. 7, Yakima County,
Washington, Unlimited Tax General Obligation
Bonds, 1995, 6.250%, 12/01/07 Aaa No Opt. Call 1,571,930
- -----------------------------------------------------------------------------------------------------------------
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 Aaa 5/05 at 102 20,717,600
- -----------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.6%
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 Aaa 8/02 at 102 2,134,360
1,750,000 Wisconsin Health and Educational Facilities
Authority (Sisters of the Sorrowful Mother
Ministry), 5.400%, 8/15/13 Aaa 8/03 at 102 1,688,837
5,000,000 Wisconsin Health and Educational Facilities
Authority Revenue Bonds, Series 1995 (Mercy
Health System Corporation), 6.125%, 8/15/23 Aaa 8/05 at 102 5,175,050
3,375,000 Village of Menamee Falls, Waukesha County, Water
System Mortgage Revenue Bonds, 5.875%, 12/01/16 AAA 12/06 at 102 3,399,368
6,000,000 City of Superior, Wisconsin, Limited Obligation
Refunding Revenue Bonds (Midwest Energy
Resources Company Project), Series E-1991
(Collateralized), 6.900%, 8/01/21 Aaa No Opt. Call 6,943,560
- -----------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.5%
3,270,000 Puerto Rico Public Buildings Authority Government
Facilities Revenue Bonds, Series A, Guaranteed by
the Commonwealth of Puerto Rico, 6.250%, 7/01/12 Aaa No Opt. Call 3,563,940
$726,300,000 Total Investments - (cost $739,506,189) - 100.6% 753,623,908
================
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.1%
$ 1,000,000 The Port Authority of New York and New Jersey,
================
Versatile Structure Obligations, Series 5, Variable
Rate Demand Bonds, 3.950%, 8/01/24+ VMIG-1 1,000,000
Other Assets Less Liabilities - (0.7)% (5,416,942)
Net Assets - 100% $749,206,966
============
<PAGE>
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 147 $739,090,617 98%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 2 3,807,359 1
PORTFOLIO OF A+ A1 2 10,725,932 1
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
TOTAL 151 $753,623,908 100%
<FN>
All of the bonds in the portfolio, excluding temporary investments in short-term
municipal securities, are either covered by Original Issue Insurance, Secondary
Market Insurance or Portfolio Insurance, or are backed by an escrow or trust
containing sufficient U.S. Government or U.S. Government agency securities, any
of which ensure the timely payment of principal and interest.
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
** Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates. (WI) Security purchased on a when-issued basis (see note
1 of the Notes to Financial Statements).
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based
on market conditions or a specified market index.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
(Unaudited)
<CAPTION>
NQI NIO NIF NPX
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $ 812,889,548 $1,776,539,349 $ 425,206,175 $ 753,623,908
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 1,300,000 10,600,000 900,000 1,000,000
Cash -- 32,248 133,282 2,629,722
Receivables:
Interest 16,069,559 36,293,488 8,150,695 13,516,345
Investments sold 373,793 12,747,058 15,000 3,431,689
Other assets 165,233 107,663 21,583 35,219
-------------- -------------- -------------- --------------
Total assets 830,798,133 1,836,319,806 434,426,735 774,236,883
-------------- -------------- -------------- --------------
LIABILITIES
Cash overdraft 12,346 -- -- --
Payable for investments purchased -- 12,798,958 -- 22,077,733
Accrued expenses:
Management fees (note 6) 423,119 910,741 225,270 383,927
Other 349,362 589,404 119,030 195,855
Preferred share dividends payable 337,161 279,587 78,816 119,440
Common share dividends payable 3,066,091 6,537,410 1,491,631 2,252,962
-------------- -------------- -------------- --------------
Total liabilities 4,175,733 21,116,100 1,914,747 25,029,917
-------------- -------------- -------------- --------------
Net assets (note 7) $ 826,610,054 $1,815,203,706 $ 432,511,988 $ 749,206,966
============== ============== ============== ==============
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 37,391,355 79,724,513 19,123,476 37,239,037
============== ============== ============== ==============
Net asset value per Common share outstanding
(net assets less Preferred
shares at liquidation value,
divided by Common shares outstanding) $ 15.15 $ 15.24 $ 15.30 $ 12.90
============== ============== ============== ==============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended April 30, 1997
(Unaudited)
<CAPTION>
NQI NIO NIF NPX
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 26,183,323 $ 56,283,941 $ 13,116,826 $ 21,485,252
------------ ------------ ------------ ------------
Expenses:
Management fees (note 6) 2,590,652 5,567,046 1,374,335 2,347,195
Preferred shares--auction fees 308,749 750,001 175,000 336,124
Preferred shares--dividend disbursing agent fees 24,276 37,805 14,815 33,380
Shareholders' servicing agent fees and expenses 60,279 97,519 23,683 33,128
Custodian's fees and expenses 56,313 106,472 34,996 57,382
Directors'/Trustees' fees and expenses (note 6) 3,319 7,188 1,796 2,972
Professional fees 14,254 17,115 11,360 15,443
Shareholders' reports--printing and mailing expenses 96,146 180,330 44,915 85,729
Stock exchange listing fees 17,702 35,348 12,129 29,818
Portfolio insurance expense 67,774 131,864 -- 17,812
Investor relations expense 33,854 68,949 16,508 28,242
Other expenses 19,226 41,206 10,694 13,826
------------ ------------ ------------ ------------
Total expenses 3,292,544 7,040,843 1,720,231 3,001,051
------------ ------------ ------------ ------------
Net investment income 22,890,779 49,243,098 11,396,595 18,484,201
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions
(notes 1 and 3) 562,098 (486,511) 5,112 2,043,173
Net change in unrealized appreciation or depreciation
of investments (10,393,474) (20,812,226) (3,693,587) (7,560,828)
------------ ------------ ------------ ------------
Net gain (loss) from investments (9,831,376) (21,298,737) (3,688,475) (5,517,655)
------------ ------------ ------------ ------------
Net increase in net assets from operations $ 13,059,403 $ 27,944,361 $ 7,708,120 $ 12,966,546
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES
IN NET ASSETS
(Unaudited)
<CAPTION>
NQI NIO
Six months ended Year ended Six months ended Year ended
4/30/97 10/31/96 4/30/97 10/31/96
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 22,890,779 $ 46,193,418 $ 49,243,098 $ 98,572,854
Net realized gain (loss) from
investment transactions (notes 1 and 3) 562,098 3,254,303 (486,511) 2,396,716
Net change in unrealized appreciation
or depreciation of investments (10,393,474) (7,254,617) (20,812,226) (1,434,975)
--------------- --------------- --------------- ---------------
Net increase in net assets
from operations 13,059,403 42,193,104 27,944,361 99,534,595
--------------- --------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (18,451,585) (36,746,426) (39,205,209) (78,335,840)
Preferred shareholders (4,435,400) (9,268,262) (9,904,224) (20,306,685)
From accumulated net realized gains from
investment transactions:
Common shareholders (2,596,924) (5,309,685) (1,903,809) (4,544,352)
Preferred shareholders (659,152) (1,554,540) (488,200) (1,470,440)
--------------- --------------- --------------- ---------------
Decrease in net assets from distributions
to shareholders (26,143,061) (52,878,913) (51,501,442) (104,657,317)
--------------- --------------- --------------- ---------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from shares issued in
acquisition of NPE (note 1) -- -- -- --
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions 389,714 406,797 1,029,492 1,074,209
--------------- --------------- --------------- ---------------
Net increase in net assets from capital
share transactions 389,714 406,797 1,029,492 1,074,209
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets (12,693,944) (10,279,012) (22,527,589) (4,048,513)
Net assets at beginning of period 839,303,998 849,583,010 1,837,731,295 1,841,779,808
--------------- --------------- --------------- ---------------
Net assets at end of period $ 826,610,054 $ 839,303,998 $ 1,815,203,706 $ 1,837,731,295
=============== =============== =============== ===============
Balance of undistributed net investment
income at end of period $ 1,320,472 $ 1,316,678 $ 3,269,366 $ 3,135,701
=============== =============== =============== ===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NIF NPX
Six months ended Year ended Six months ended Year ended
4/30/97 10/31/96 4/30/97 10/31/96
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 11,396,595 $ 22,777,733 $ 18,484,201 $ 22,602,555
Net realized gain (loss) from
investment transactions (notes 1 and 3) 5,112 604,377 2,043,173 (2,149,308)
Net change in unrealized appreciation
or depreciation of investments (3,693,587) (1,219,225) (7,560,828) 8,437,858
------------- ------------- ------------- -------------
Net increase in net assets
from operations 7,708,120 22,162,885 12,966,546 28,891,105
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (8,949,784) (17,899,574) (13,517,669) (16,064,541)
Preferred shareholders (2,380,792) (5,048,652) (4,571,192) (6,160,046)
From accumulated net realized gains
from investment transactions:
Common shareholders -- -- -- --
Preferred shareholders -- -- -- --
------------- ------------- ------------- -------------
Decrease in net assets from distributions
to shareholders (11,330,576) (22,948,226) (18,088,861) (22,224,587)
------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from shares issued in
acquisition of NPE (note 1) -- -- -- 319,754,404
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions -- -- -- --
------------- ------------- ------------- -------------
Net increase in net assets from capital
share transactions -- -- -- 319,754,404
------------- ------------- ------------- -------------
Net increase (decrease) in net assets (3,622,457) (785,341) (5,122,315) 326,420,922
Net assets at beginning of period 436,134,445 436,919,786 754,329,281 427,908,359
------------- ------------- ------------- -------------
Net assets at end of period $ 432,511,988 $ 436,134,445 $ 749,206,966 $ 754,329,281
============= ============= ============= =============
Balance of undistributed net investment
income at end of period $ 679,513 $ 613,495 $ 1,403,668 $ 1,008,328
============= ============= ============= =============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT
ACCOUNTING POLICIES
At April 30, 1997, 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.
On September 9, 1996, NPX acquired all of the net
assets of Nuveen Insured Premium Income Municipal
Fund, Inc. (NPE) pursuant to a plan of reorganization
approved by the shareholders of both Funds on July 25,
1996. The acquisition was accomplished by a tax-free
exchange of 16,596,974 shares of NPX for the
14,712,490 shares of NPE outstanding on September 9,
1996. NPE's net assets at that date of $319,754,404
included $8,606,160 of net unrealized appreciation and
$110,000,000 of preferred shares at liquidation value
which were combined with that of NPX. The combined net
assets of NPX immediately after the acquisition were
$739,531,152.
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.
<PAGE>
Securities Valuation The prices of municipal bonds in each Fund's
investment portfolio are provided by a pricing service
approved and supervised 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 demand features qualifying them as short-term
securities traded and valued at amortized cost.
Securities Transactions Securities transactions are recorded on a
trade date basis. Realized gains and losses from such
transactions are determined on the specific
identification method. Securities purchased or sold on
a when-issued or delayed delivery basis may be settled
a month or more after the transaction date. The
securities so purchased are subject to market
fluctuation during this period. The Funds have
instructed the custodian to segregate assets in a
separate account with a current value at least equal
to the amount of their purchase commitments. At April
30, 1997, NPX had purchase commitments of $22,077,733.
There were no such purchase commitments in any of the
other funds.
Interest Income Interest income is determined on the basis of
interest accrued, adjusted for amortization of
premiums and accretion of discounts on long-term debt
securities when required for federal income tax
purposes.
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.
<PAGE>
Dividends and Tax-exempt net investment income is declared as a
Distributions to dividend monthly and payment is made or reinvestment
Shareholders is credited to shareholder accounts after month-end.
Net realized capital gains and/or market discount
from investment transactions are distributed to
shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to
the extent they exceed available capital loss
carryovers.
Distributions to shareholders of tax-exempt net
investment income, net realized capital gains and/or
market discount are recorded on the ex-dividend date.
The amount and timing of distributions are determined
in accordance with federal income tax regulations,
which may differ from generally accepted accounting
principles. Accordingly, temporary over-distributions
as a result of these differences may occur and will be
classified as either distributions in excess of net
investment income, distributions in excess of net
realized gains and/or distributions in excess of net
ordinary taxable income from investment transactions,
where applicable.
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 NQI
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,
is as follows:
<TABLE>
<CAPTION>
NQI NIO NIF NPX
<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>
<PAGE>
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 The Funds may invest in certain derivative financial
Instruments instruments including futures, forward, swap, and
option contracts, and other financial instruments
with similar characteristics. Although the Funds are
authorized to invest in such financial instruments,
and may do so in the future, they did not make any
such investments during the six months ended
April 30, 1997.
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.
<PAGE>
2. FUND SHARES
Transactions in Common and Preferred shares were as
follows:
<TABLE>
NQI NIO
Six Six
months Year months Year
ended ended ended ended
4/30/97 10/31/96 4/30/97 10/31/96
<S> <C> <C> <C> <C>
Common shares:
Shares issued in acquisition of NPE, as
applicable (note 1) -- -- -- --
Shares issued to shareholders due to
reinvestment of distributions 25,555 26,245 67,331 71,736
------ ------ ------ ------
Net increase 25,555 26,245 67,331 71,736
====== ====== ====== ======
Preferred shares acquired in acquisitions
of NPE, as applicable (note 1) -- -- -- --
====== ====== ====== ======
<CAPTION>
NIF NPX
Six Six
months Year months Year
ended ended ended ended
4/30/97 10/31/96 4/30/97 10/31/96
<S> <C> <C> <C> <C>
Common shares:
Shares issued in acquisition of NPE, as
applicable (note 1) -- -- -- 16,596,974
Shares issued to shareholders due to
reinvestment of distributions -- -- -- --
-- -- -- ----------
Net increase -- -- -- 16,596,974
==== ==== ==== ==========
Preferred shares acquired in acquisitions
of NPE, as applicable (note 1) -- -- -- 4,400
==== ==== ==== ==========
</TABLE>
<PAGE>
<TABLE>
3. SECURITIES TRANSACTIONS
Purchase and sales (including maturities) of
investments in municipal securities and temporary
municipal investments during the six months ended
April 30, 1997, were as follows:
<CAPTION>
NQI NIO NIF NPX
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $32,447,563 $76,891,935 $ 2,629,215 $189,427,829
Temporary municipal investments 54,310,000 40,800,000 10,675,000 101,155,000
SALES AND MATURITIES
Investments in municipal securities 32,795,748 90,928,665 1,967,680 159,878,750
Temporary municipal investments 57,610,000 44,100,000 10,775,000 112,255,000
=========== =========== =========== ============
</TABLE>
At April 30, 1997, 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, 1996, the Funds' last fiscal year end,
the following Funds had unused capital loss carryovers
available for federal income tax purposes to be
applied against future capital gains, if any. If not
applied, the carryovers will expire as follows:
<TABLE>
<CAPTION>
NIF NPX*
<S> <C> <C>
Expiration year:
2001 $ -- $ 957,231
2002 137,945 12,354,503
2003 -- 12,029,555
2004 -- 2,080,786
-------- ------------
Total $137,945 $27,422,075
======== ============
<FN>
* Due to the acquisition of NPE by NPX (note 1), NPE had net realized losses
from investment transactions of $2,901,998 which were carried forward by NPX, as
permitted under applicable tax regulations.
</FN>
</TABLE>
<PAGE>
<TABLE>
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On May 1, 1997, the Funds declared Common share
dividend distributions from their tax-exempt net
investment income which were paid June 2, 1997, to
shareholders of record on May 15, 1997, as follows:
<CAPTION>
NQI NIO NIF NPX
<S> <C> <C> <C> <C>
Dividend per share $.0820 $.0820 $.0780 $.0605
====== ====== ====== ======
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized
depreciation of investments at April 30, 1997, were as
follows:
<CAPTION>
NQI NIO NIF NPX
<S> <C> <C> <C> <C>
Gross unrealized:
appreciation $ 43,875,870 $ 106,194,777 $ 26,813,184 $ 16,087,063
depreciation (329,632) (1,563,118) (52,792) (1,969,344)
------------- ------------- ------------- -------------
Net unrealized appreciation $ 43,546,238 $ 104,631,659 $ 26,760,392 $ 14,117,719
============= ============= ============= =============
</TABLE>
<PAGE>
<TABLE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS
WITH AFFILIATES
Under the Funds' investment management agreements with
Nuveen Advisory Corp. (the "Adviser"), a wholly owned
subsidiary of The John Nuveen Company, each Fund pays
to the Adviser an annual management fee, payable
monthly, at the rates set forth below, which are based
upon the average daily net asset value of each Fund:
<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
The fee compensates the Adviser for overall investment
advisory and administrative services and general
office facilities. The Funds pay no compensation
directly to those 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, 1997, net
assets consisted of:
<CAPTION>
NQI NIO NIF NPX
<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 373,914 797,245 191,235 372,390
Paid-in surplus 520,809,885 1,106,995,432 265,012,900 489,883,197
Balance of undistributed net
investment income 1,320,472 3,269,366 679,513 1,403,668
Accumulated net realized gain (loss)
from investment transactions 559,545 (489,996) (132,052) (25,470,008)
Net unrealized appreciation of investments 43,546,238 104,631,659 26,760,392 14,117,719
--------------- --------------- --------------- ---------------
Net assets $ 826,610,054 $ 1,815,203,706 $ 432,511,988 $ 749,206,966
=============== =============== =============== ===============
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>
<TABLE>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which
include general obligation, escrowed and revenue
bonds. At April 30, 1997, the revenue sources by
municipal purpose for these investments, expressed as
a percent of total investments, were as follows:
<CAPTION>
NQI NIO NIF NPX
<S> <C> <C> <C> <C>
Revenue Bonds:
Housing Facilities 24% 19% 10% 19%
Pollution Control Facilities 13 13 17 11
Health Care Facilities 12 17 15 5
Transportation 4 4 6 12
Electric Utilities 2 3 3 8
Water / Sewer Facilities 4 4 1 8
Lease Rental Facilities 4 4 3 3
Educational Facilities 3 2 1 4
Other 5 2 4 2
General Obligation Bonds 6 4 5 25
Escrowed Bonds 23 28 35 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)
<CAPTION>
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD
IS AS FOLLOWS:
Dividends from tax-exempt
Operating performance net investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income ments shareholders shareholders+
NQI
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 $15.500 $ .611 $ (.261) $ (.492) $(.119)
Year ended 10/31:
1996 15.790 1.237 (.111) (.984) (.248)
1995 14.500 1.269 1.329 (1.014) (.294)
1994 16.580 1.269 (2.038) (1.038) (.257)
1993 15.110 1.320 1.574 (1.194) (.212)
1992 14.850 1.347 .244 (1.067) (.229)
12/19/90 to
10/31/91 14.050 1.004 .849 (.684) (.190)
<CAPTION>
NIO
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 15.540 .618 (.272) (.492) (.124)
Year ended 10/31:
1996 15.600 1.238 .016 (.984) (.255)
1995 14.040 1.252 1.598 (.984) (.306)
1994 16.240 1.238 (2.175) (1.001) (.249)
1993 14.400 1.238 1.897 (1.039) (.232)
1992 14.130 1.128 .346 (.874) (.183)
9/19/91 to
10/31/91 14.050 .052 .045 -- --
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Organization Common
and offering share
costs and market
To To Preferred share Net asset value
Common Preferred underwriting value end end of
shareholders shareholders+ discounts of period period
NQI
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 $(.071) $(.018) $ -- $15.150 $15.000
Year ended 10/31:
1996 (.142) (.042) -- 15.500 15.125
1995 -- -- -- 15.790 15.000
1994 (.014) (.002) -- 14.500 13.125
1993 (.015) (.003) -- 16.580 17.375
1992 (.027) (.008) -- 15.110 15.250
12/19/90 to
10/31/91 -- -- (.179) 14.850 15.500
<CAPTION>
NIO
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 (.024) (.006) -- 15.240 15.250
Year ended 10/31:
1996 (.057) (.018) -- 15.540 15.250
1995 -- -- -- 15.600 14.875
1994 (.011) (.002) -- 14.040 13.000
1993 (.019) (.005) -- 16.240 16.125
1992 -- -- (.147) 14.400 14.000
9/19/91 to
10/31/91 -- -- (.017) 14.130 14.875
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value** value** thousands) net assets++ net assets++ rate
NQI
<S> <C> <C> <C> <C> <C> <C>
Six months ended
4/30/97 2.90% 1.37% $826,610 .80%* 5.53%* 4%
Year ended 10/31:
1996 8.54 5.49 839,304 .80 5.50 33
1995 22.62 16.43 849,583 .81 5.73 30
1994 (19.13) (6.43) 801,482 .82 5.64 22
1993 22.55 18.34 876,821 .80 5.76 7
1992 5.32 9.36 815,993 .78 6.06 5
12/19/90 to
10/31/91 8.04 10.83 801,050 .77* 6.14* 33
<CAPTION>
NIO
<S> <C> <C> <C> <C> <C> <C>
Six months ended
4/30/97 3.41 1.39 1,815,204 .78* 5.42* 4
Year ended 10/31:
1996 9.77 6.50 1,837,731 .78 5.38 18
1995 22.78 18.74 1,841,780 .79 5.59 16
1994 (13.60) (7.59) 1,717,023 .79 5.44 20
1993 23.41 20.75 1,892,814 .81 5.36 5
1992 (.14) 8.21 1,745,207 .79 5.55 13
9/19/91 to
10/31/91 (.83) .57 1,116,736 .77* 4.00* --
See notes on page 78.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<CAPTION>
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD
IS AS FOLLOWS:
Dividends from tax-exempt
Operating performance net investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income ments shareholders shareholders+
NIF
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 $15.490 $ .595 $ (.193) $(.468) $(.124)
Year ended 10/31:
1996 15.530 1.191 (.031) (.936) (.264)
1995 14.050 1.197 1.508 (.936) (.289)
1994 16.280 1.192 (2.214) (.960) (.248)
1993 14.030 1.204 2.233 (.975) (.212)
12/19/91 to
10/31/92 14.050 .760 .100 (.600) (.093)
<CAPTION>
NPX
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 13.040 .497 (.151) (.363) (.123)
Year ended 10/31:
1996 13.030 .988 .002 (.714) (.266)
1995 10.990 1.001 2.079 (.747) (.293)
1994 14.290 .978 (3.170) (.775) (.196)
7/22/93 to
10/31/93 14.050 .114 .228 (.064) --
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Organization Common
and offering share
costs and market
To To Preferred share Net asset value
Common Preferred underwriting value end end of
shareholders shareholders+ discounts of period period
NIF
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 $ -- $ -- $ -- $15.300 $14.875
Year ended 10/31:
1996 -- -- -- 15.490 14.875
1995 -- -- -- 15.530 14.500
1994 -- -- -- 14.050 12.500
1993 -- -- -- 16.280 15.625
12/19/91 to
10/31/92 -- -- (.187) 14.030 14.000
<CAPTION>
NPX
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 -- -- -- 12.900 11.625
Year ended 10/31:
1996 -- -- -- 13.040 11.438
1995 -- -- -- 13.030 11.375
1994 -- -- (.137) 10.990 9.875
7/22/93 to
10/31/93 -- -- (.038) 14.290 13.875
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value** value** thousands) net assets++ net assets++ rate
NIF
<S> <C> <C> <C> <C> <C> <C>
Six months ended
4/30/97 3.16% 1.80% $432,512 .80%* 5.27%* --%
Year ended 10/31:
1996 9.23 5.93 436,134 .80 5.22 3
1995 24.14 17.73 436,920 .81 5.40 5
1994 (14.53) (8.06) 408,690 .81 5.30 4
1993 19.03 23.67 451,289 .81 5.31 9
12/19/91 to
10/31/92 (2.77) 4.13 407,907 .81* 5.00* 3
<CAPTION>
NPX
<S> <C> <C> <C> <C> <C> <C>
Six months ended
4/30/97 4.81 1.71 749,207 .80* 4.94* 21
Year ended 10/31:
1996 6.95 5.70 754,329 .86 4.78 32
1995 23.46 26.20 427,908 .83 5.07 30
1994 (23.99) (18.24) 385,692 .83 4.83 25
7/22/93 to
10/31/93 (7.08) 2.16 295,074 .86* 3.16* --
<FN>
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes in
stock price per share. Total Return on Net Asset Value is the combination of
reinvested dividend income, reinvested capital gains distributions, if any, and
changes in net asset value per share.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
</FN>
</TABLE>
<PAGE>
Serving investors for generations
Photographic image of John Nuveen Sr., founder of Nuveen.
Since our founding in 1898, John Nuveen & Co. Incorporated has been synonymous
with investments that withstand the test of time. Today, we offer a broad range
of investments designed for mature investors whose portfolios are the principal
source of their ongoing financial security. More than 1.3 million investors have
entrusted Nuveen to help them maintain the lifestyle they currently enjoy.
A value investing approach--purchasing securities of strong companies and
communities that represent good long-term value--is the cornerstone of Nuveen's
investment philosophy. It is a careful, long-term strategy that offers the
potential for attractive returns with moderated risk. Successful value investing
begins with in-depth research and a discerning eye for marketplace opportunity.
Nuveen's team of investment professionals is backed by the discipline, resources
and expertise of almost a century of investment experience, including one of the
most recognized municipal research departments in the industry.
To meet the unique circumstances and financial planning needs of mature
investors, Nuveen offers a wide array of taxable and tax-free investment
products--including equity and fixed-income mutual funds, unit trusts,
exchange-traded funds, individual managed account services, and cash
management products.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
FSA-4-4.97
