NUVEEN Exchange-Traded Funds
October 31, 1999
Annual Report
Dependable, tax-free income to help you keep more of what you earn.
NQI
Insured Quality
NIO
Insured Opportunity
NIF
Premier Insured Income
NPX
Insured Premium Income 2
Photo of: People walking on beach.
<PAGE>
Highlights
As of October 31, 1999
Credit Quality Performance Highlights
Nuveen Insured Quality Municipal Fund, Inc. (NQI)
o Taxable-equivalent yield on share price of 10.09%*
o Has provided a steady tax-free dividend for
18 consecutive months
Pie Chart:
Insured 78%
Insured and U.S. Guaranteed 20%
U.S. Guaranteed 2%
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO)
o Taxable-equivalent yield on share price of 10.13%*
o Less than 4% of its portfolio is callable prior
to 2001
Pie Chart:
Insured 70%
Insured and U.S. Guaranteed 29%
U.S. Guaranteed 1%
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF)
o Taxable-equivalent yield on share price of 9.94% *
o Has provided a steady tax-free dividend for
16 consecutive months
Pie Chart::
Insured 67%
Insured and U.S. Guaranteed 19%
U.S. Guaranteed 14%
Nuveen Insured Premium Income Municipal Fund 2 (NPX)
o Taxable-equivalent yield on share price of 9.14% *
o Has provided a steady tax-free dividend for
36 consecutive months
Pie Chart:
Insured 88%
Insured and U.S. Guaranteed 12%
Contents
1 Dear Shareholder
3 Portfolio Manager's Comments
6 NQI's Performance Overview
7 NIO's Performance Overview
8 NIF's Performance Overview
9 NPX's Performance Overview
10 Shareholder Meeting Report
14 Report of Independent Auditors
15 Portfolio of Investments
40 Statement of Net Assets
41 Statement of Operations
42 Statement of Changes in Net Assets
44 Notes to Financial Statements
49 Financial Highlights
52 Build Your Wealth Automatically
53 Fund Information
* For investors in the 31% federal income tax bracket. See your fund's
performance overview in this report for more information.
<PAGE>
Photo of: Timothy R. Schwertfeger
Chairman of the Board
sidebar text: Wealth takes a lifetime to build. Once achieved, it should be
preserved.
Dear Shareholder
I am pleased to report to you on the annual performance of your Nuveen
Exchange-Traded Fund. Providing a stable, attractive tax-free dividend is the
Fund's main objective, and over the past year, your Fund continued to achieve
this goal. During the period covered by this report, we have seen some shifts in
the U.S. investment climate and the fixed-income environment in which your
Nuveen Exchange-Traded Fund operates. I appreciate the opportunity to review the
current investment environment with you, as does the portfolio manager of your
Fund, who discusses fund performance later in this report.
A CHALLENGING INVESTMENT ENVIRONMENT
Over the past 12 months, the U.S. economy continued to be characterized by
surprisingly robust growth, benign inflation, and unemployment levels that
remained among the lowest in three decades. However, concerns about the
persistent pace of the economy's expansion continued to test the new paradigm,
which holds that the improvements in productivity achieved through technology
enable us to have both economic growth and low inflation at the same time. With
investors watching and reacting to each announcement concerning economic
statistics, volatility increased, especially in the equity markets, and the
spectre of inflation seemed to lurk behind every report. Especially worrisome to
the Federal Reserve was the possibility that tight labor markets would
eventually have an inflationary effect on wages and, consequently, on consumer
prices.
In an effort to pre-empt this threat of inflation, the Fed moved to raise
interest rates by a quarter-point on three separate occasions between June and
November 1999. This brought the federal funds rate - which represents the amount
banks charge one another on overnight loans, establishing the standard for other
short-term rates - from 4.75% to 5.50%, thereby erasing the three rate cuts
enacted by the Fed a year earlier. At its November meeting, the Fed announced
that it would shift to a neutral stance following the latest interest rate
increase. With Y2K on the horizon, followed by the politics of an election year,
investors had some hope that the Fed would put any additional rate hikes on
hold. However, the Fed's indication that it would renew its close attention to
the rate of economic growth left the door open for another tightening.
MUNICIPAL BOND PERFORMANCE
Over the past year, our exchange-traded municipal bond funds continued to offer
attractive, stable income in a market that places a high premium on yield. At
the end of October 1999, the ratio between long-term municipal yields and
30-year Treasury yields stood at 100.3%, compared with the historical average of
86% for the period 1986-1999. For investors, this meant that quality long-term
municipal bonds offered yields slightly higher than those of long Treasury bonds
- - even before the tax advantages of municipals were taken into account. On an
after-tax basis, municipal bonds continued to present an exceptionally
attractive investment option relative to Treasuries.
During 1999, we have seen the supply of municipal bonds drop off from the
near-record levels of 1998. This was largely due to the increase in interest
rates, which deterred municipal governments from issuing new debt and removed
much of the incentive to refund existing bonds. To date, municipal supply has
declined by approximately 20% from the levels of a year ago. This, in turn, has
enhanced the attractiveness of the municipal bonds that are brought to market,
as demand - especially from individual investors - remains strong. We anticipate
that this demand will continue to strengthen as investors increasingly look at
<PAGE>
rebalancing their portfolios. With the outlook for tighter supply and continued
demand in the months ahead, Nuveen's established market position as the leading
sponsor of exchange-traded municipal bond funds enables us to have excellent
access to the bond offerings that have the potential to add value for our
shareholders.
A BALANCED PORTFOLIO:
ENHANCED GROWTH WITH REDUCED RISK
If you are like most investors in the marketplace today, your goals for tax-free
investing probably include capturing high after-tax total returns while
moderating risk. To demonstrate the role that municipal bonds can play in
achieving this goal, Nuveen tracked a balanced portfolio consisting of equities
and municipal bonds and compared its hypothetical investment performance - based
on appropriate market indexes and tax rates - with that of a balanced portfolio
composed of equities and taxable bonds.
Our research showed that, over the past 20 years, the pairing of equities with
municipal bonds provided both superior after-tax total returns and lower levels
of risk than the combination of equities and taxable bonds. Incorporating even a
20% allocation of municipal bonds into an all-equity portfolio cut risk
substantially, with only a small reduction in after-tax total return. Purchasing
shares of a Nuveen Exchange-Traded Municipal Bond Fund provides an easy way to
incorporate the benefits of municipal bonds into a balanced portfolio.
NUVEEN FUNDS:
AN ANSWER TO YOUR INVESTMENT NEEDS
In light of the recent shifts in the investment environment, your financial
adviser can serve as a valuable resource in helping you determine if adjustments
are needed in your current asset allocation plan and suggesting investments that
can accomplish this goal. By investing in other Nuveen funds, you can bring
balance to your portfolio and provide proper exposure to the different types of
investments needed to enhance your potential for success. Your adviser can also
set up a reinvestment plan designed to purchase additional shares of your Nuveen
Exchange-Traded Fund. For more information on Nuveen's expanding array of funds,
contact your financial adviser for a prospectus detailing all charges and
expenses, or call Nuveen at (800) 621-7227. Please read the prospectus carefully
before you invest or send money.
THE NEW MILLENNIUM
Since this is my last opportunity to talk with you before we enter the new
millennium, I wanted to take a moment to discuss the status of Nuveen's
preparations for that event. We believe that Nuveen is fully prepared for the
upcoming transition, from an operational as well as an investment perspective.
During 1999, Nuveen tested all critical operating systems, and we anticipate no
problems with year-end processing. As we evaluated potential investments over
the year, Nuveen carefully reviewed the progress of each issuer toward Y2K
compliance. Last summer, we requested information from the issuers of all bonds
in the Funds' portfolios, with special attention to the largest and more
volatile holdings. In the following months, we continued to monitor issuers'
progress in this area, assisted by securities industry oversight organizations,
including the Municipal Securities Rulemaking Board and the Securities and
Exchange Commission, as well as rating agencies and insurance companies. Based
on our review, we believe that the majority of issuers are Y2K-compliant. The
diligence of the financial industry as a whole in dealing with this transition
should prove to have ongoing benefits for investors.
Since 1898, Nuveen has been synonymous with investments that stand the test of
time. As we enter the new millennium, we remain committed to maintaining that
reputation and finding the best ways to serve your evolving investment needs.
Thank you for your continued confidence.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
December 15, 1999
sidebar text: "Purchasing shares of a Nuveen Exchange-Traded Municipal Bond Fund
provides an easy way to incorporate the benefits of municipal
bonds into a balanced portfolio."
<PAGE>
Nuveen Exchange-Traded Funds
Portfolio Manager's Comments
PORTFOLIO MANAGER STEVE KRUPA DISCUSSES THE MUNICIPAL MARKET, RECENT FUND
PERFORMANCE, AND KEY INVESTMENT STRATEGIES FOR THE NUVEEN NATIONAL INSURED
EXCHANGE-TRADED FUNDS. STEVE HAS SERVED AS PORTFOLIO MANAGER FOR NQI AND NIO
SINCE THEIR INCEPTIONS IN 1990 AND 1991. HE ASSUMED PORTFOLIO MANAGEMENT DUTIES
for NIF and NPX in July 1998.
WHAT FACTORS CONTRIBUTED TO THE PERFORMANCE OF THE MUNICIPAL MARKET DURING THE
PAST 12 MONTHS ENDED OCTOBER 31,1999?
Over the past year, the U.S. economy continued to forge ahead with few signs of
slowing. Among the statistics showing surprising strength in recent months was
gross domestic product (GDP) growth, which rose 5.5% in the third quarter, well
ahead of projections. The growth in GDP was fueled by rising inventories, an
improved trade balance, and strong consumer spending, which continues to serve
as the main engine powering U.S. economic expansion. Commodity prices,
particularly oil and gold, and raw material prices also continued to rise. For
the most part, however, these increases did not translate into higher consumer
prices. Through the end of October 1999, the Consumer Price Index showed
inflation maintaining its low profile, with an annualized increase of 2.8%.
Labor markets remained among the tightest in 30 years, as the national
unemployment average dropped to 4.1% in October 1999, down from 4.5% in October
1998. Also in October, U.S. personal income surged 1.3%, its biggest jump in
more than five years.
Concerned about the potential for an overheated economy, the Federal Reserve
raised short-term interest rates twice during the fiscal year covered by this
report. A third increase, announced on November 16, occurred after the reporting
period for the Funds. According to the Fed's theory, the impact of the two rate
increases on the stock market during the period covered by this report should
have caused consumer confidence to fall and consumer spending to slow, thereby
pre-empting any reemergence of inflation. Despite the evidence of the Fed's
continued vigilance on the inflation front, the cumulative effect of 1999's
economic events has been negative for the fixed-income markets, including
municipal bonds.
HOW DID THESE EVENTS IMPACT SUPPLY AND DEMAND IN THE MUNICIPAL MARKET?
For the first 10 months of 1999, municipal supply across the nation fell just
over 20% from the levels recorded during the same period in 1998. Some of this
decline can be attributed to the rise in interest rates, which deterred
municipalities from issuing long-term debt at higher interest costs. In
addition, the refunding activity involving older debt typically declines in a
rising interest rate environment. Among the states, California and New York
remained the most active issuers in the nation. Although we expect to see
adequate municipal supply for the remainder of the year, Y2K concerns are
expected to affect the new issuance calendar to some extent. To avoid any
potential problems as 1999 turns to 2000, some municipal bond issuers have
accelerated this year's issuance, while others have decided to delay issues
until next year. Issuance should gradually return to a more normal level
following January, with issuance in 2000 expected to be on par with that of
1999.
Over recent months, institutional demand for municipal paper has been weakened
by several events outside the municipal market. Insurance companies, which have
historically been major buyers of municipal bonds, have been hit hard by claims
from natural disasters and further hampered by price cutting on insurance
premiums in the property casualty sector, which has hurt earnings. At the same
time, fund redemptions have limited the demand from mutual fund companies,
another major source of institutional demand. In addition, an accelerated
corporate bond issuance calendar, timed to avoid any problems with Y2K, resulted
in heavy corporate bond supply, which vied with municipal bonds for
institutional investor attention.
On the other hand, demand from individual investors has been a bright spot for
municipal bonds during most of 1999, as investors actively worked to rebalance
their portfolios by redirecting assets from equity investments into the
fixed-income market. In 1998, individual investors held more than 30% of
outstanding municipal debt, making them the largest owner class, and statistics
indicate that municipal bond sales to retail investors in 1999 are on track to
beat 1998's record levels.
HOW DID THE NUVEEN NATIONAL INSURED FUNDS PERFORM IN THIS ENVIRONMENT?
For the 12 months ended October 31, 1999, the Nuveen national insured funds
produced total returns on net asset value (NAV) ranging from -7.21% to -5.33%,
providing taxable-equivalent total returns1 between -4.84% and -2.62% for
shareholders in the 31% federal
1 The taxable-equivalent total return represents the total return that must be
earned on a taxable investment in order to equal the total return of the
Nuveen fund on an after-tax basis. The taxable-equivalent total return is
based on the annualized total return and the 31% federal income tax rate.
<PAGE>
income tax bracket, as shown in the accompanying table. The annual total return
for the Funds' benchmark, the Lehman Brothers Insured Municipal Bond Index2, and
the average total return for their Lipper Peer Group3 are also provided.
Lipper
Lehman Index Peer Group
Total Return on NAV Total Return(2) Average(3)
----------------------- -------------- --------------
1-Year Ended Taxable- 1-Year Ended 1-Year Ended
10/31/99 Equivalent(1) 10/31/99 10/31/99
----------- ----------- -------------- --------------
NQI -6.77% -4.11% -3.03% -4.67%
----------- ----------- -------------- --------------
NIO -5.33% -2.62% -3.03% -4.67%
----------- ----------- -------------- --------------
NIF -6.42% -3.85% -3.03% -4.67%
----------- ----------- -------------- --------------
NPX -7.21% -4.84% -3.03% -4.67%
----------- ----------- -------------- --------------
Past performance is not predictive of future results.
For additional information on your Fund, see its individual Performance Overview
in this report.
The underperformance of the Funds' total returns on NAV relative to their Lehman
benchmark can be attributed largely to their durations4. Duration measures a
bond fund's price volatility, or reaction to interest rate movements (prices
fall when rates rise and vice versa). The longer the duration, the more
sensitive the fund's NAV is to changes in interest rates. During a period of
falling interest rates, a longer duration enables a fund's NAV to participate
more fully in market gains. However, when interest rates rise as they did over
the last year, longer duration can make the fund's NAV more vulnerable to price
declines. As of October 31, 1999, the Funds' durations ranged from 10.82 to
13.19, compared with 8.75 for the Lehman Brothers Insured Municipal Bond Index.
Between November 1, 1998, and October 31, 1999, the yield on the Bond Buyer
Revenue Bond Index5 rose from 5.28% to 6.18%. This meant that funds with longer
durations, like the Funds in this report, were more likely to underperform the
market, as represented by the Lehman Brothers Insured Municipal Bond Index.
Over the past 12 months, the durations of all the Nuveen national insured funds
lengthened considerably due to market action, trading activity, and bond calls
that removed shorter bonds from each fund. Proceeds from sold or called bonds
were reinvested in issues with longer durations. These bonds provided attractive
yields and better call protection. Lengthening the Funds' durations should help
position the Funds to regain net asset value as the bond market recovers.
HOW WERE THE FUNDS' DIVIDENDS AND SHARE PRICES AFFECTED?
During the past 12 months, good call protection helped support the dividends of
NQI, NIF, and NPX and shield the income of these funds from erosion. As of
October 31, 1999, NPX had provided shareholders with steady dividends for 36
consecutive months, and NQI and NIF had produced 18 and 16 consecutive months of
stable dividends, respectively. For NIO, however, the need to reinvest the
proceeds from called and matured bonds during the relatively lower interest rate
environment that prevailed in 1998, compared to when it was issued in September
of 1991, led to a dividend reduction in May 1999. Despite this single dividend
adjustment, all of the Nuveen funds continued to provide competitive market
yields.
In 1999, rising interest rates, inflation worries, and the uncertainty
surrounding the timing of the Federal Reserve's moves created a negative
environment in the fixed-income markets. In addition, concerns about the impact
of the transition to the year 2000 have precipitated an early start to tax-swap
season, as investors attempt to offset profits in the equity markets by selling
fixed-income investments with embedded losses. All of these factors have
negatively impacted the market demand for exchange-traded funds, especially NIO
and NIF, which had been trading at premiums to their net asset value. This
situation resulted in declines in share price across the board. Since the
prevailing interest rate environment in October 1999 was higher than that of a
year earlier, the Funds' NAVs also declined, as bond prices fell while interest
rates rose. As a result of these factors, NIO and NIF saw their premiums (share
price above NAV) move to discounts (share price below NAV), while the discounts
on NQI and NPX widened over the past 12 months.
Premium/ Total Return
Market Yield Discount(6) on Share Price
------------------- ------------------ --------------------------
Taxable- 1-Year Ended Taxable-
10/31/99 Equivalent(1) 10/31/98 10/31/99 10/31/99 Equivalent(1)
-------- ---------- -------- -------- ------------ ----------
NQI 6.96% 10.09% -2.47% -5.47% -9.65% -6.92%
-------- ---------- -------- -------- ------------ ----------
NIO 6.99% 10.13% 3.65% -6.58% -14.71% -12.09%
-------- ---------- -------- -------- ------------ ----------
NIF 6.86% 9.94% 4.30% -7.89% -17.33% -14.87%
-------- ---------- -------- -------- ------------ ----------
NPX 6.31% 9.14% -2.93% -7.26% -11.16% -8.72%
-------- ---------- -------- -------- ------------ ----------
WHAT KEY STRATEGIES WERE USED TO MANAGE THE FUNDS DURING THE PAST 12 MONTHS?
Over the past year, especially in the past five months as interest rates rose,
we worked to enhance the structure of the Funds by selling short, pre-refunded
bonds and bonds with shorter call provisions and reinvesting the proceeds into
longer bonds with attractive yields to support the dividends. This also acted to
improve the call protection of the Funds.
Enhanced tax efficiency has also been an increasing focus for us over the past
five months, as the rising interest rate environment offered opportunities to
benefit the Funds through active trading. The increased level of recent trading
activity is reflected in the transaction volume figure for the Nuveen
Exchange-Traded Funds for the third quarter of 1999, which was 10 times that of
the same period in 1998. The strategy we are employing involves selling selected
bonds that
1 The taxable-equivalent yield/total return represents the yield/total return
that must be earned on a taxable investment in order to equal the yield/total
return of the Nuveen fund on an after-tax basis. The taxable-equivalent yield
is based on the fund's current market yield and a federal income tax rate of
31%, while the taxable-equivalent total return is based on the annualized
total return and the 31% federal income tax rate.
2 The national insured funds are compared with the Lehman Brothers Insured
Municipal Bond Index, an unleveraged index covering a broad range of insured
municipal bonds. Results for the index do not reflect any initial or ongoing
expenses.
3 The returns for the insured funds are compared with the average annualized
return of the 20 funds in the Lipper Insured Leveraged Closed-End Municipal
Debt Funds category. Fund and Lipper returns assume reinvestment of dividends.
4 Fund duration, also known as leverage-adjusted duration, takes into account
the leveraging process for each fund and therefore differs from the duration
of the actual portfolio of individual bonds that make up the fund. Unless
otherwise noted, references to duration in this commentary are intended to
indicate fund duration.
5 The Bond Buyer Revenue Bond Index is an unmanaged index of long-term municipal
revenue bonds.
6 A fund's premium or discount represents the percentage difference between the
fund's share price and its net asset value (NAV).
<PAGE>
are trading at a loss, recognizing the capital losses, and then rolling the
proceeds into bonds with similar characteristics, but offering yields reflecting
the current market and with better call protection. Some of the bonds we sold
were due to mature or scheduled to be called within the next few months, while
others were bonds that we had purchased earlier this year that were now
producing a lower income stream than that recently available in the market. This
trading not only gave us capital losses with which to offset current and future
capital gains, protecting shareholders from additional taxes, but also-in most
cases-increased the net earnings of the Funds. If current market conditions
persist, we will continue to focus on implementing this strategy.
Although new issue supply in the municipal market has declined from last year's
levels, we were able to identify attractive bonds in several sectors that added
value and diversification to the Funds. One of these was the transportation
sector, where the large number of airports and toll roads that have been built
over the past few years has resulted in a good selection of issues. We also
continue to watch the healthcare and utilities sectors for attractive issues.
Because of deregulation, some investors are avoiding healthcare and utilities
entirely, which can lead to opportunities for those who take a prudent
investment approach to these sectors. Since one of Nuveen's strategies is to
find value in sectors and bonds that have been overlooked by the rest of the
market, both healthcare and utilities have been areas where Nuveen research has
enabled us to find and exploit opportunities that can add value for our
shareholders. In addition to improving diversification, these bonds provide
attractive income, with the potential of being an excellent example of the types
of purchases we made to support the Funds' dividends.
The four national insured funds, which are 100% invested in insured or U.S.
guaranteed bonds, also offer strong credit quality. The 1% of NQI's portfolio
that is categorized as BBB represents a bond covered by portfolio insurance,
which guarantees payment of principal and interest while held by the Fund.
All of the Nuveen national insured funds issue MuniPreferred shares that pay
short-term interest rates to investors seeking short-term liquidity. The
proceeds from these preferred shares are used to buy additional long-term bonds
for the leveraged funds' portfolios. These bonds can generate additional income
for the portfolios, but may also increase volatility, including lengthening
durations. During the past year, the leverage ratios of NQI, NIO, and NIF fell
below the Nuveen guideline of 35%. This led to the issuance of new MuniPreferred
shares for NIO in April, NQI in May, and NIF in June. (NPX's leverage ratio
remained above Nuveen's 35% guideline over the past 12 months.) Nuveen
releveraged the Funds both to restore the original leverage ratio of 35% and to
provide the potential for increased incremental tax-free income for common
shareholders.
In the area of bond calls, NIF and NPX currently provide excellent levels of
call protection, with approximately 3% and 1% of their portfolios, respectively,
subject to calls between now and the end of 2001. This should provide additional
protection and stability for the dividends of these funds over this period. Both
NQI and NIO, which were assembled in December 1990 and September 1991, are well
protected (approximately 9% and 4%, respectively) through the end of the year
2000. However, as these funds approach the 10-year mark, they reach the part of
a bond's life when the likelihood of bond calls increases. Ten years after the
original issue date, issuers typically have their first opportunity to call, or
redeem, outstanding bonds. Calls are likely to occur if current interest rates
are more favorable to the issuer than the rates that prevailed when the bonds
were first issued.
To reduce the impact of any calls, we continuously work on strategies designed
to enhance call protection. As mentioned earlier, we have been active buyers in
the current market as we try to take advantage of the higher interest rate
environment. These recent purchases can also benefit the Funds by extending call
protection. Given the current level of bond yields, we have been evaluating
suitable replacements for older bonds, focusing on bonds that we believe are
undervalued and have the potential to support the Funds' dividends and enhance
portfolio structure. This should enable us to continue providing a competitive
level of dividends for our shareholders.
WHAT IS NUVEEN'S OUTLOOK FOR THE FUNDS?
In the months ahead, we plan to continue active trading to capitalize on the
higher yields currently available in the municipal market and enhance our
portfolio holdings and the dividend capabilities of the Funds, as we have been
doing over the past few months. As opportunities arise, we will take advantage
of the tax losses we have been recognizing to sell overvalued bonds without
incurring capital gains. We will also continue to work on strategies designed to
manage the Funds' call exposure and reduce the impact of bond calls. Currently,
that includes selling bonds with short calls and extending the Funds' call
protection by buying new issues with favorable call features.
The ability to implement strategies with the potential to benefit the Funds
demonstrates the value that can be added by an active bond manager such as
Nuveen. As an experienced investment manager knowledgeable about the unique
aspects of the municipal market, we are in the marketplace every day, monitoring
market dynamics, looking for opportunities, and trying to capitalize on them to
the benefit of shareholders.
<PAGE>
Nuveen Insured Quality Municipal Fund, Inc.
Performance Overview
As of October 31, 1999
NQI
Portfolio Statistics
Inception Date 12/90
- --------------------------------------------------
Share Price $13 3/16
- --------------------------------------------------
Net Asset Value $13.95
- --------------------------------------------------
Market Yield 6.96%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Tax Rate)(1) 10.09%
- --------------------------------------------------
Fund Net Assets ($000) $845,789
- --------------------------------------------------
Average Effective Maturity (Years) 19.41
- --------------------------------------------------
Leverage-Adjusted Duration 11.36
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year -9.65% -6.77%
- --------------------------------------------------
5-Year 7.08% 6.07%
- --------------------------------------------------
Since Inception 5.35% 6.86%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year -6.92% -4.11%
- --------------------------------------------------
5-Year 10.10% 8.97%
- --------------------------------------------------
Since Inception 8.38% 9.87%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
U.S. Guaranteed 22%
- --------------------------------------------------
Utilities 17%
- --------------------------------------------------
Transportation 17%
- --------------------------------------------------
Healthcare 13%
- --------------------------------------------------
Tax Obligation/Limited 9%
- --------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
federal tax rate is based on the current market yield and a federal income tax
rate of 31%.
2 Taxable-equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
3 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 1998 of $0.1261 and $0.0001, respectively, per
share.
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share(3)
11/98 0.0765
12/98 0.0765
1/99 0.0765
2/99 0.0765
3/99 0.0765
4/99 0.0765
5/99 0.0765
6/99 0.0765
7/99 0.0765
8/99 0.0765
9/99 0.0765
10/99 0.0765
Line Chart:
Share Price Performance
11/6/98 15.75
15.94
15.94
16.38
16.13
15.94
16.06
16
15.69
15.5
15.44
15.63
15.56
15.75
15.75
16
16
16
15.81
15.88
15.88
15.94
15.69
15.44
15.38
15.38
15.31
15.31
15.13
15.25
15.44
15.44
15.31
15.13
14.81
14.44
14.19
14.38
14.44
14.38
13.94
13.94
14
13.19
13.13
10/31/99 13.19
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
Nuveen Insured Municipal Opportunity Fund, Inc.
Performance Overview
As of October 31, 1999
NIO
Portfolio Statistics
Inception Date 9/91
- --------------------------------------------------
Share Price $13 5/16
- --------------------------------------------------
Net Asset Value $14.25
- --------------------------------------------------
Market Yield 6.99%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Tax Rate)(1) 10.13%
- --------------------------------------------------
Fund Net Assets ($000) $1,835,516
- --------------------------------------------------
Average Effective Maturity (Years) 18.39
- --------------------------------------------------
Leverage-Adjusted Duration 10.82
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year -14.71% -5.33%
- --------------------------------------------------
5-Year 7.21% 6.95%
- --------------------------------------------------
Since Inception 5.07% 6.75%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year -12.09% -2.62%
- --------------------------------------------------
5-Year 10.20% 9.88%
- --------------------------------------------------
Since Inception 8.03% 9.66%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
U.S. Guaranteed 30%
- --------------------------------------------------
Healthcare 16%
- --------------------------------------------------
Utilities 14%
- --------------------------------------------------
Housing/Single Family 12%
- --------------------------------------------------
Transportation 10%
- --------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
federal tax rate is based on the current market yield and a federal income
tax rate of 31%.
2 Taxable-equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
3 The Fund also paid shareholders capital gains distributions in December 1998
of $0.0405 per share.
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share(3)
11/98 0.079
12/98 0.079
1/99 0.079
2/99 0.079
3/99 0.079
4/99 0.079
5/99 0.0775
6/99 0.0775
7/99 0.0775
8/99 0.0775
10/99 0.0775
11/99 0.0775
Share Price Performance
11/6/98 16.75
16.94
16.75
16.88
16.75
16.63
16.5
16.38
16.38
16.25
16.38
16.75
16.63
16.5
16.44
16.56
16.63
16.5
16.5
16.5
16.06
16.13
16.25
16.13
15.5
15.31
15.31
15.31
15.19
15.19
15.13
15.19
15.19
15.19
14.94
15
14.88
14.38
14.44
14.5
14.31
14.13
13.75
13.81
13.81
13.25
13.13
10/31/99 13.31
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
Nuveen Premier Insured Municipal Income Fund, Inc.
Performance Overview
As of October 31, 1999
NIF
Portfolio Statistics
Inception Date 12/91
- --------------------------------------------------
Share Price $13 1/8
- --------------------------------------------------
Net Asset Value $14.25
- --------------------------------------------------
Market Yield 6.86%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Tax Rate)(1) 9.94%
- --------------------------------------------------
Fund Net Assets ($000) $435,668
- --------------------------------------------------
Average Effective Maturity (Years) 17.61
- --------------------------------------------------
Leverage-Adjusted Duration 12.58
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year -17.33% -6.42%
- --------------------------------------------------
5-Year 7.42% 6.53%
- --------------------------------------------------
Since Inception 4.51% 6.35%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year -14.87% -3.85%
- --------------------------------------------------
5-Year 10.32% 9.31%
- --------------------------------------------------
Since Inception 7.35% 9.12%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
U.S. Guaranteed 33%
- --------------------------------------------------
Tax Obligation/Limited 19%
- --------------------------------------------------
Healthcare 17%
- --------------------------------------------------
Utilities 12%
- --------------------------------------------------
Housing/Multifamily 5%
- --------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
federal tax rate is based on the current market yield and a federal income tax
rate of 31%.
2 Taxable-equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
3 The Fund also paid shareholders capital gains distributions in December 1998
of $0.0402 per share.
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share(3)
11/98 0.075
12/98 0.075
1/99 0.075
2/99 0.075
3/99 0.075
4/99 0.075
5/99 0.075
6/99 0.075
7/99 0.075
8/99 0.075
9/99 0.075
10/99 0.075
Line Chart:
Share Price Performance
11/6/98 16.69
16.5
16.44
16.5
16.44
16.44
16.44
16.31
16.06
16.06
16.19
16.44
16.5
16.5
16.44
16.44
16.19
16.06
16.06
16.13
15.63
15.75
16
15.81
15.75
15.38
15.19
15.19
14.75
15.13
14.94
15.25
15.25
15.13
14.88
15
14.75
14.38
14.38
14.69
14.63
14.19
13.88
13.94
14.13
13.38
13.19
10/31/99 13.13
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
Nuveen Insured Premium Income Municipal Fund 2
Performance Overview
As of October 31, 1999
NPX
Portfolio Statistics
Inception Date 7/93
- --------------------------------------------------
Share Price $11 1/2
- --------------------------------------------------
Net Asset Value $12.40
- --------------------------------------------------
Market Yield 6.31%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Tax Rate)(1) 9.14%
- --------------------------------------------------
Fund Net Assets ($000) $730,855
- --------------------------------------------------
Average Effective Maturity (Years) 17.98
- --------------------------------------------------
Leverage-Adjusted Duration 13.19
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year -11.16% -7.21%
- --------------------------------------------------
5-Year 9.47% 8.28%
- --------------------------------------------------
Since Inception 1.67% 3.55%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year -8.72% -4.84%
- --------------------------------------------------
5-Year 12.35% 10.88%
- --------------------------------------------------
Since Inception 4.39% 6.07%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
Utilities 25%
- --------------------------------------------------
Tax Obligation/General 14%
- --------------------------------------------------
Tax Obligation/Limited 13%
- --------------------------------------------------
U.S. Guaranteed 12%
- --------------------------------------------------
Healthcare 11%
- --------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
federal tax rate is based on the current market yield and a federal income tax
rate of 31%.
2 Taxable-equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share
11/98 0.0605
12/98 0.0605
1/99 0.0605
2/99 0.0605
3/99 0.0605
4/99 0.0605
5/99 0.0605
6/99 0.0605
7/99 0.0605
8/99 0.0605
9/99 0.0605
10/99 0.0605
Line Chart:
Share Price Performance
11/6/98 13.69
13.69
13.94
13.81
13.94
13.88
13.81
13.69
13.38
13.25
13.5
13.25
13.31
13.31
13.44
13.56
13.44
13.38
13.69
13.38
13.13
13.13
13.13
13.13
12.69
12.75
12.94
12.81
12.56
12.94
12.5
12.63
12.63
12.75
12.63
12.75
12.5
12.38
12.31
12.19
12.06
11.81
11.81
11.81
11.56
10.94
10.56
10/31/99 11.5
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
Shareholder Meeting Report
<TABLE>
<CAPTION>
The Shareholder Meeting was held July 28, 1999.
NQI
- ------------------------------------------------------------------------------------------------------------------------------------
Approval of the Directors was reached as follows:
Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Shares Shares
Shares Series-M Series-T Series-W Series-TH Series-F
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Robert P. Bremner
For 32,455,591 2,482 2,259 2,099 2,320 2,480
Withhold 329,416 15 2 7 -- 21
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,785,007 2,497 2,261 2,106 2,320 2,501
====================================================================================================================================
Lawrence H. Brown
For 32,465,101 2,487 2,259 2,099 2,320 2,480
Withhold 319,906 10 2 7 -- 21
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,785,007 2,497 2,261 2,106 2,320 2,501
====================================================================================================================================
Anne E. Impellizzeri
For 32,454,434 2,487 2,259 2,099 2,320 2,480
Withhold 330,573 10 2 7 -- 21
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,785,007 2,497 2,261 2,106 2,320 2,501
====================================================================================================================================
Peter R. Sawers
For 32,490,975 2,497 2,259 2,099 2,320 2,482
Withhold 294,032 -- 2 7 -- 19
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,785,007 2,497 2,261 2,106 2,320 2,501
====================================================================================================================================
William J. Schneider
For -- 2,482 2,255 2,099 2,320 2,480
Withhold -- 15 6 7 -- 21
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,497 2,261 2,106 2,320 2,501
====================================================================================================================================
Timothy R. Schwertfeger
For -- 2,482 2,257 2,099 2,320 2,480
Withhold -- 15 4 7 -- 21
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,497 2,261 2,106 2,320 2,501
====================================================================================================================================
Judith M. Stockdale
For 32,475,186 2,497 2,259 2,099 2,320 2,482
Withhold 309,821 -- 2 7 -- 19
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,785,007 2,497 2,261 2,106 2,320 2,501
====================================================================================================================================
Ratification of auditors was reached as follows:
For 32,385,742 2,490 2,247 2,100 2,320 2,485
Against 136,564 -- -- 6 -- 11
Abstain 262,701 7 14 -- -- 5
- ------------------------------------------------------------------------------------------------------------------------------------
Total 32,785,007 2,497 2,261 2,106 2,320 2,501
====================================================================================================================================
</TABLE>
<PAGE>
Shareholder Meeting Report
<TABLE>
<CAPTION>
NIO
- ------------------------------------------------------------------------------------------------------------------------------------
Approval of the Directors was reached as follows:
Preferred Preferred Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Shares Shares Shares Shares
Shares Series-M Series-T Series-W Series-W2 Series-TH Series-TH-2 Series-F
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Robert P. Bremner
For 72,097,927 3,827 3,462 3,429 3,192 3,609 3,797 3,344
Withhold 913,668 31 117 40 8 -- 1 58
- ------------------------------------------------------------------------------------------------------------------------------------
Total 73,011,595 3,858 3,579 3,469 3,200 3,609 3,798 3,402
====================================================================================================================================
Lawrence H. Brown
For 72,113,788 3,827 3,470 3,429 3,192 3,609 3,797 3,344
Withhold 897,807 31 109 40 8 -- 1 58
- ------------------------------------------------------------------------------------------------------------------------------------
Total 73,011,595 3,858 3,579 3,469 3,200 3,609 3,798 3,402
====================================================================================================================================
Anne E. Impellizzeri
For 72,143,995 3,827 3,474 3,429 3,192 3,609 3,797 3,344
Withhold 867,600 31 105 40 8 -- 1 58
- ------------------------------------------------------------------------------------------------------------------------------------
Total 73,011,595 3,858 3,579 3,469 3,200 3,609 3,798 3,402
====================================================================================================================================
Peter R. Sawers
For 72,146,527 3,855 3,474 3,429 3,192 3,609 3,797 3,344
Withhold 865,068 3 105 40 8 -- 1 58
- ------------------------------------------------------------------------------------------------------------------------------------
Total 73,011,595 3,858 3,579 3,469 3,200 3,609 3,798 3,402
====================================================================================================================================
William J. Schneider
For -- 3,827 3,461 3,429 3,192 3,601 3,797 3,344
Withhold -- 31 118 40 8 8 1 58
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,858 3,579 3,469 3,200 3,609 3,798 3,402
====================================================================================================================================
Timothy R. Schwertfeger
For -- 3,827 3,461 3,429 3,192 3,601 3,797 3,344
Withhold -- 31 118 40 8 8 1 58
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,858 3,579 3,469 3,200 3,609 3,798 3,402
====================================================================================================================================
Judith M. Stockdale
For 72,188,159 3,855 3,474 3,429 3,192 3,609 3,797 3,344
Withhold 823,436 3 105 40 8 -- 1 58
- ------------------------------------------------------------------------------------------------------------------------------------
Total 73,011,595 3,858 3,579 3,469 3,200 3,609 3,798 3,402
====================================================================================================================================
Ratification of auditors was reached as follows:
For 72,028,441 3,741 3,472 3,433 3,200 3,609 3,776 3,351
Against 254,669 28 -- 12 -- -- 22 --
Abstain 728,485 89 107 24 -- -- -- 51
- ------------------------------------------------------------------------------------------------------------------------------------
Total 73,011,595 3,858 3,579 3,469 3,200 3,609 3,798 3,402
====================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Shareholder Meeting Report
NIF
- ------------------------------------------------------------------------------------------------------------------------------------
Approval of the Directors was reached as follows:
Preferred Preferred
Common Shares Shares
Shares Series-TH Series-F
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Robert P. Bremner
For 16,922,942 2,395 2,549
Withhold 114,289 150 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 17,037,231 2,545 2,549
====================================================================================================================================
Lawrence H. Brown
For 16,921,448 2,395 2,549
Withhold 115,783 150 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 17,037,231 2,545 2,549
====================================================================================================================================
Anne E. Impellizzeri
For 16,928,306 2,395 2,549
Withhold 108,925 150 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 17,037,231 2,545 2,549
====================================================================================================================================
Peter R. Sawers
For 16,933,063 2,395 2,549
Withhold 104,168 150 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 17,037,231 2,545 2,549
====================================================================================================================================
William J. Schneider
For -- 2,395 2,549
Withhold -- 150 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,545 2,549
====================================================================================================================================
Timothy R. Schwertfeger
For -- 2,395 2,549
Withhold -- 150 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,545 2,549
====================================================================================================================================
Judith M. Stockdale
For 16,933,063 2,395 2,549
Withhold 104,168 150 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 17,037,231 2,545 2,549
====================================================================================================================================
Ratification of auditors was reached as follows:
For 16,836,967 2,351 2,545
Against 39,551 -- --
Abstain 160,713 194 4
- ------------------------------------------------------------------------------------------------------------------------------------
Total 17,037,231 2,545 2,549
====================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Shareholder Meeting Report
NPX
- ------------------------------------------------------------------------------------------------------------------------------------
Approval of the Trustees was reached as follows:
Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Shares Shares
Shares Series-M Series-T Series-W Series-TH Series-F
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Robert P. Bremner
For 33,156,292 1,979 2,008 1,648 1,834 2,103
Withhold 371,259 1 -- 8 -- 3
- ------------------------------------------------------------------------------------------------------------------------------------
Total 33,527,551 1,980 2,008 1,656 1,834 2,106
====================================================================================================================================
Lawrence H. Brown
For 33,171,864 1,979 2,008 1,648 1,834 2,103
Withhold 355,687 1 -- 8 -- 3
- ------------------------------------------------------------------------------------------------------------------------------------
Total 33,527,551 1,980 2,008 1,656 1,834 2,106
====================================================================================================================================
Anne E. Impellizzeri
For 33,200,581 1,980 2,008 1,648 1,834 2,103
Withhold 326,970 -- -- 8 -- 3
- ------------------------------------------------------------------------------------------------------------------------------------
Total 33,527,551 1,980 2,008 1,656 1,834 2,106
====================================================================================================================================
Peter R. Sawers
For 33,207,132 1,980 2,008 1,648 1,834 2,103
Withhold 320,419 -- -- 8 -- 3
- ------------------------------------------------------------------------------------------------------------------------------------
Total 33,527,551 1,980 2,008 1,656 1,834 2,106
====================================================================================================================================
William J. Schneider
For -- 1,979 2,008 1,642 1,834 2,103
Withhold -- 1 -- 14 -- 3
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,980 2,008 1,656 1,834 2,106
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,979 2,008 1,642 1,834 2,103
Withhold -- 1 -- 14 -- 3
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,980 2,008 1,656 1,834 2,106
====================================================================================================================================
Judith M. Stockdale
For 33,210,293 1,980 2,008 1,648 1,834 2,103
Withhold 317,258 -- -- 8 -- 3
- ------------------------------------------------------------------------------------------------------------------------------------
Total 33,527,551 1,980 2,008 1,656 1,834 2,106
====================================================================================================================================
Ratification of auditors was reached as follows:
For 33,122,788 1,977 2,007 1,648 1,834 2,105
Against 98,528 -- -- -- -- 1
Abstain 306,235 3 1 8 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 33,527,551 1,980 2,008 1,656 1,834 2,106
====================================================================================================================================
</TABLE>
<PAGE>
Report of Independent Auditors
The Board of Directors/Trustees and Shareholders
Nuveen Insured Quality Municipal Fund, Inc.
Nuveen Insured Municipal Opportunity Fund, Inc.
Nuveen Premier Insured Municipal Income Fund, Inc.
Nuveen Insured Premium Income Municipal Fund 2
We have audited the accompanying statements of net assets, including the
portfolios of investments, of Nuveen Insured Quality Municipal Fund, Inc.,
Nuveen Insured Municipal Opportunity Fund, Inc., Nuveen Premier Insured
Municipal Income Fund, Inc. and Nuveen Insured Premium Income Municipal Fund 2
as of October 31, 1999, and the related statements of operations, changes in net
assets and the financial highlights for the years indicated therein. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
October 31, 1999, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Insured Quality Municipal Fund, Inc., Nuveen Insured Municipal
Opportunity Fund, Inc., Nuveen Premier Insured Municipal Income Fund, Inc. and
Nuveen Insured Premium Income Municipal Fund 2 at October 31, 1999, and the
results of their operations, changes in their net assets and financial
highlights for the years indicated therein in conformity with generally accepted
accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
December 16, 1999
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Insured Quality Municipal Fund, Inc. (NQI)
October 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alabama - 1.8%
$ 8,500,000 The Special Care Facilities Financing Authority of the City of 1/00 at 100 AAA $ 8,520,230
Birmingham, Alabama, Health Care Facility Revenue Refunding Bonds,
Medical Center East, Series 1986, 7.250%, 7/01/15
2,250,000 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101 AAA 1,902,623
Warrants, Series 1999-A, 5.125%, 2/01/39
University of South Alabama, Tuition Revenue Bonds, Series 1999:
7,545,000 0.000%, 11/15/17 No Opt. Call AAA 2,507,053
7,545,000 0.000%, 11/15/18 No Opt. Call AAA 2,341,214
- ------------------------------------------------------------------------------------------------------------------------------------
Arizona - 5.1%
5,000,000 City of Phoenix (Arizona), Civic Improvement Corporation, 7/03 at 102 AAA 5,355,850
Wastewater System Lease Revenue Bonds, Series 1993,
6.125%, 7/01/23 (Pre-refunded to 7/01/03)
10,000,000 Industrial Development Authority of the County of Pima (Arizona), 7/01 at 102 AAA 10,523,400
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
Business Development Finance Corporation of the City of Tucson
(Arizona), Local Development Lease Revenue Refunding Bonds,
Series 1992:
3,020,000 6.250%, 7/01/08 (Pre-refunded to 7/01/02) 7/02 at 102 AAA 3,215,726
6,980,000 6.250%, 7/01/08 7/02 at 102 AAA 7,387,772
15,250,000 City of Tucson, Arizona, Water System Revenue Bonds, Series 1991, 7/01 at 102 AAA 16,245,673
7.100%, 7/01/18 (Pre-refunded to 7/01/01)
- ------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 2.2%
9,450,000 Arkansas Development Finance Authority, Single Family 7/05 at 102 AAA 9,768,843
Mortgage Revenue Bonds, 1995 Series B (Mortgage-Backed Securities
Program), 6.700%, 7/01/27 (Alternative Minimum Tax)
Pope County, Arkansas, Solid Waste Disposal Revenue Bonds,
Series 1991 (Arkansas Power and Light Company Project):
6,400,000 8.000%, 1/01/21 (Alternative Minimum Tax) 1/01 at 102 BBB+ 6,660,864
2,250,000 8.000%, 1/01/21 (Alternative Minimum Tax) at 102 AAA 2,373,593
- ------------------------------------------------------------------------------------------------------------------------------------
California - 9.4%
9,455,000 Alameda County Public Facilities Corporation, California, Certificates 9/06 at 102 AAA 9,517,781
of Participation (1991 Financing Project), California, 6.000%, 9/01/21
12,695,000 Antioch Area Public Facilities Financing Agency, Community Facilities 8/02 at 102 AAA 11,361,644
District No. 1989-1, Series 1993 Special Tax Bonds, 5.000%, 8/01/18
3,000,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 8/07 at 102 AAA 2,879,610
1997 Series E, 5.650%, 8/01/17 (Alternative Minimum Tax)
California Pollution Control Financing Authority, Pollution Control
Refunding Revenue Bonds (Southern California Edison Company),
1999 Series C:
14,675,000 5.450%, 9/01/29 9/09 at 101 AAA 13,668,442
6,570,000 5.450%, 9/01/29 9/09 at 100 AAA 6,119,364
5,500,000 California Statewide Communities Development Authority, 7/04 at 102 AAA 5,578,760
San Diego, California, Certificates of Participation, the Salk Institute
for Biological Studies, 6.200%, 7/01/24
5,000,000 Inland Empire Solid Waste Financing Authority, Revenue Bonds, 8/06 at 102 AAA 5,038,350
1996 Series B (Landfill Improvement Financing Project),
6.000%, 8/01/16 (Alternative Minimum Tax)
11,270,000 Los Angeles County Metropolitan Transportation Authority 7/03 at 100 AAA 9,906,105
(California), Proposition A, Sales Tax Revenue Refunding Bonds,
Series 1993-A, 5.000%, 7/01/21
6,910,000 Ontario Redevelopment Financing Authority (San Bernardino 8/03 at 102 AAA 7,010,610
County, California), 1993 Revenue Bonds (Ontario Redevelopment
Project No. 1), 5.850%, 8/01/22
<PAGE>
Portfolio of Investments
Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued)
October 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
California (continued)
$ 8,500,000 Airports Commission, City and County of San Francisco, California, 5/05 at 101 AAA $ 8,592,565
San Francisco International Airport, Second Series Revenue Bonds,
Issue 11 (Noise Insulation Program), 6.250%, 5/01/26
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado - 7.4%
745,000 Adams County, Colorado, Single Family Revenue Refunding Bonds, 6/01 at 103 AAA 783,412
1991 Series A-2, 8.700%, 6/01/12
5,630,000 Public Highway Authority, Arapahoe County, Colorado, Capital 8/05 at 103 AAA 5,693,225
Improvement Trust Fund Highway Revenue Bonds (E-470 Project),
Vehicle Registration Fee Bonds, 6.150%, 8/31/26
Colorado Health Facilities Authority, Insured Hospital Revenue
Bonds (PSL Healthcare System Project), Series 1991A:
5,000,000 7.250%, 2/15/16 (Pre-refunded to 2/15/01) 2/01 at 102 AAA 5,285,150
4,500,000 6.250%, 2/15/21 (Pre-refunded to 2/15/01) 2/01 at 102 AAA 4,701,735
6,500,000 Colorado Health Facilities Authority, Revenue Bonds, Series 1998 6/08 at 101 AAA 5,568,160
(Sisters of Charity of Leavenworth Health Services Corporation),
5.000%, 12/01/25
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1998B:
27,000,000 5.000%, 11/15/25 11/08 at 101 AAA 23,101,470
20,250,000 5.000%, 11/15/25 (Alternative Minimum Tax) 11/08 at 101 AAA 16,890,120
100,000 El Paso County, Colorado, Local Single Family Mortgage Revenue Bonds, 9/00 at 102 AAA 102,482
1990 Series A, 7.850%, 9/01/09 (Alternative Minimum Tax)
600,000 Jefferson County, Colorado, Single Family Revenue Refunding Bonds, 4/01 at 103 AAA 626,370
Series 1991A, 8.875%, 10/01/13
- ------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 1.7%
17,000,000 Washington Convention Center Authority (Washington, D.C.), Senior 10/08 at 101 AAA 14,562,540
Lien Dedicated Tax Revenue Bonds, Series 1998, 5.000%, 10/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
Florida - 1.6%
8,940,000 Florida Housing Finance Agency, Single Family Mortgage Revenue 7/04 at 102 AAA 9,185,582
Bonds, 1994 Series B, 6.650%, 7/01/26 (Alternative Minimum Tax)
Miami-Dade County, Florida, Subordinate Special Obligation Bonds,
Series 1997B:
15,000,000 0.000%, 10/01/33 4/08 at 25 1/16 AAA 1,799,400
10,885,000 0.000%, 10/01/34 4/08 at 23 11/16 AAA 1,225,869
16,340,000 0.000%, 10/01/35 4/08 at 22 13/32 AAA 1,727,465
- ------------------------------------------------------------------------------------------------------------------------------------
Hawaii - 2.7%
6,130,000 Department of Budget and Finance of the State of Hawaii, Special 12/02 at 102 AAA 6,374,771
Purpose Revenue Bonds (Hawaiian Electric Company, Inc. and
Subsidiaries Projects), Series 1992, 6.550%, 12/01/22 (Alternative
Minimum Tax)
16,180,000 Department of Budget and Finance of the State of Hawaii, Special 5/06 at 101 AAA 16,223,201
Purpose Revenue Bonds (Hawaii Electric Company, Inc. and
Subsidiaries Project), Series 1996A, 6.200%, 5/01/26 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 10.8%
5,000,000 Central Lake County Joint Action Water Agency, Lake County, Illinois, 5/01 at 102 AAA 5,295,750
Water Revenue Bonds, Series 1991, 7.000%, 5/01/20
(Pre-refunded to 5/01/01)
10,000,000 City of Chicago (Illinois), General Obligation Bonds, Series 1995, 7/05 at 102 AAA 10,795,400
6.125%, 1/01/16 (Pre-refunded to 7/01/05)
24,925,000 City of Chicago (Illinois), Chicago Midway Airport Revenue Bonds, 1/09 at 101 AAA 20,546,425
Series 1998B, 5.000%, 1/01/35
6,000,000 City of Chicago (Illinois), Chicago O'Hare International Airport, 1/05 at 102 AAA 6,318,000
General Airport Second Lien Revenue Refunding Bonds, Series 1994 A,
6.375%, 1/01/12
9,500,000 City of Chicago (Illinois), Chicago O'Hare International Airport, 1/10 at 101 AAA 9,025,760
General Airport Second Lien Revenue Refunding Bonds, Series 1999,
5.500%, 1/01/15 (Alternative Minimum Tax)
6,280,000 Public Building Commission of Chicago (Illinois), Building Revenue 1/00 at 102 AAA 6,453,705
Bonds, Series A of 1990 (Board of Education of the City of Chicago),
7.125%, 1/01/15
6,825,000 Public Building Commission of Chicago (Illinois), Building Revenue 12/03 at 102 AAA 7,244,669
Bonds, Series A of 1993 (Board of Education of the City of Chicago),
5.750%, 12/01/18 (Pre-refunded to 12/01/03)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Illinois (continued)
$ 8,165,000 Illinois Development Finance Authority, Revenue Bonds (Bradley 8/09 at 101 AAA $ 7,469,342
University Project), Series 1999, 5.500%, 8/01/29
Illinois Health Facilities Authority, Revenue Bonds, Series 1997A
(Loyola University Health System):
2,635,000 5.000%, 7/01/24 (Pre-refunded to 7/01/07) 7/07 at 101 AAA 2,658,741
8,875,000 5.000%, 7/01/24 7/07 at 101 AAA 7,453,846
190,000 City of Moline, City of Rock Island, and City of Urbana, Illinois, 8/00 at 102 AAA 195,176
Single Family Mortgage Revenue Bonds (GNMA Mortgage-
Backed Securities Program), Series 1990, 8.050%, 8/01/23
(Alternative Minimum Tax)
7,700,000 Board of Trustees of Southern Illinois University, Southern Illinois 4/07 at 102 AAA 7,499,107
University Medical Facilities System Revenue Bonds, Series 1997,
5.875%, 4/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 4.3%
4,560,000 Indiana Housing Finance Authority, Single Family Mortgage Revenue 7/00 at 102 Aaa 4,764,516
Bonds (GNMA Collateralized-Home Mortgage Program),
1990 Series C, 7.800%, 1/01/22 (Alternative Minimum Tax)
6,000,000 Jasper County, Indiana, Collateralized Pollution Control Refunding 7/01 at 102 AAA 6,320,580
Revenue Bonds (Northern Indiana Public Service Company Project),
Series 1991, 7.100%, 7/01/17
9,645,000 Marion County Convention and Recreational Facilities Authority 6/01 at 102 AAA 10,235,178
(Indiana), Excise Taxes Lease Rental Revenue Bonds, Series 1991B,
7.000%, 6/01/21 (Pre-refunded to 6/01/01)
4,230,000 City of Rockport, Indiana, Pollution Control Revenue Refunding 3/01 at 102 AAA 4,463,496
Bonds (Indiana-Michigan Power Company Project), Series B,
7.600%, 3/01/16
10,000,000 Hospital Authority of St. Joseph County (Indiana), Fixed Rate 8/01 at 102 AAA 10,659,400
Hospital Revenue Refunding Bonds, Series 1991A (Memorial
Hospital of South Bend Project), 7.000%, 8/15/20 (Pre-refunded to 8/15/01)
- ------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.7%
5,305,000 City of Mason City, Iowa, Hospital Revenue Bonds (Sisters of Mercy 8/01 at 102 AAA 5,655,767
Health Corporation), 1991 Series L, 7.000%, 8/15/21
(Pre-refunded to 8/15/01)
- ------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 2.2%
13,170,000 City of New Orleans, Louisiana, General Obligation Refunding Bonds, 10/05 at 101 AAA 13,321,850
Series 1995, 6.200%, 10/01/21
5,100,000 Orleans Levee District (A Political Subdivision of the State of 12/05 at 103 AAA 5,137,026
Louisiana), Public Improvement Bonds, Series 1986, 5.950%, 11/01/15
- ------------------------------------------------------------------------------------------------------------------------------------
Maine - 1.5%
12,320,000 Maine State Housing Authority, Mortgage Purchase Bonds, 5/01 at 102 AAA 12,748,982
1991 Series A, 7.400%, 11/15/22
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 2.8%
28,500,000 Massachusetts Turnpike Authority, Metropolitan Highway System 1/07 at 102 AAA 23,754,180
Revenue Bonds, 1997 Series C (Senior), 5.000%, 1/01/37
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan - 1.6%
15,500,000 Michigan State Hospital Finance Authority, Revenue and Refunding 5/08 at 101 AAA 13,328,295
Bonds (St. John Health System), Series 1998A, 5.000%, 5/15/28
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 0.9%
6,470,000 Minneapolis/St. Paul Housing Finance Board, Single Family Mortgage 2/00 at 101 AAA 6,546,152
Revenue Bonds (Minneapolis/Saint Paul Family Housing Program,
Phase VI), 8.300%, 8/01/21 (Alternative Minimum Tax)
976,000 City of St. Louis Park, Minnesota, Single Family Residential 4/01 at 102 Aaa 1,005,739
Mortgage Revenue Refunding Bonds (GNMA Mortgage-Backed
Securities Program), Series 1991-A, 7.250%, 4/20/23
- ------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 2.3%
2,545,000 Harrison County, Wastewater Management District (Mississippi), No Opt. Call AAA 3,219,120
Wastewater Treatment Facilities Revenue Refunding Bonds,
Series 1991A, 8.500%, 2/01/13
2,715,000 Harrison County, Wastewater Management District (Mississippi), No Opt. Call AAA 3,248,416
Wastewater Treatment Facilities Revenue Refunding Bonds,
Series 1991B, 7.750%, 2/01/14
3,615,000 Mississippi Housing Finance Corporation, Single Family Mortgage 4/00 at 102 AAA 3,692,325
Purchase Revenue Bonds, Series 1989 (GNMA Mortgage-Backed
Securities Program), 8.250%, 10/15/18 (Alternative Minimum Tax)
<PAGE>
Portfolio of Investments
Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued)
October 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Mississippi (continued)
$ 8,700,000 Mississippi Home Corporation, Single Family Mortgage Revenue 6/06 at 105 Aaa $ 9,547,554
Bonds, Series 1996C, 7.600%, 6/01/29 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Missouri - 0.6%
5,000,000 St. Louis Municipal Finance Corporation, City Justice Center, 2/06 at 102 AAA 5,033,550
Leasehold Revenue Improvement Bonds, Series 1996A (City of
St. Louis, Missouri, Lessee), 6.000%, 2/15/19
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada - 1.9%
3,270,000 Clark County, Nevada, Industrial Development Revenue Bonds 6/00 at 102 AAA 3,394,849
(Nevada Power Company Project), Series 1990, 7.800%, 6/01/20
(Alternative Minimum Tax)
13,185,000 Washoe County, Nevada, Hospital Refunding Revenue Bonds 6/04 at 102 AAA 13,056,842
(Washoe Medical Center, Inc. Project), Series 1994A, 6.000%, 6/01/19
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 0.5%
3,750,000 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, 7/04 at 102 AAA 4,053,825
Monmouth Medical Center Issue, Series C, 6.250%, 7/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 2.6%
5,000,000 City of Albuquerque, New Mexico, Airport Revenue Bonds, 7/00 at 105 AAA 5,293,100
Series 1995A, 6.600%, 7/01/16 (Alternative Minimum Tax)
6,000,000 City of Farmington, New Mexico, Pollution Control Refunding Revenue 4/01 at 102 A+ 6,286,620
Bonds (Southern California Edison Company, Four Corners Project),
1991 Series A, 7.200%, 4/01/21
3,850,000 New Mexico Mortgage Finance Authority, Multifamily Housing 1/01 at 102 AAA 4,000,959
Refunding Revenue Bonds, 1990 Series A Tax-Exempt (Fannie Mae
Collateralized), 7.625%, 1/01/24
5,750,000 City of Santa Fe, New Mexico, Revenue Bonds, Series 1994A, 6/04 at 100 AAA 6,134,043
6.300%, 6/01/24 (Pre-refunded to 6/01/04)
- ------------------------------------------------------------------------------------------------------------------------------------
New York - 10.5%
The City of New York, General Obligation Bonds, Fiscal 1991 Series A:
2,000,000 8.000%, 3/15/11 3/00 at 101 1/2 AAA 2,058,240
6,000,000 7.250%, 3/15/19 3/00 at 101 1/2 AAA 6,152,340
17,700,000 New York City Housing Development Corporation, Multi-Unit Mortgage 6/01 at 102 AAA 18,655,092
Refunding Bonds (FHA-Insured Mortgage Loans), 1991 Series A,
7.250%, 6/01/19
10,335,000 New York City Municipal Water Finance Authority, Water and Sewer 6/05 at 101 AAA 11,042,431
System Revenue Bonds, Fiscal 1996 Series A, 6.000%, 6/15/25
(Pre-refunded to 6/15/05)
5,250,000 Dormitory Authority of the State of New York, Lease Revenue Bonds 7/09 at 101 AAA 4,877,460
(State University Dormitory Facilities Issue), Series 1999C,
5.500%, 7/01/29
10,000,000 Dormitory Authority of the State of New York, the New York Hospital 8/09 at 101 AAA 9,258,000
Medical Center of Queens, FHA-Insured Mortgage Hospital Revenue
Bonds, Series 1999, 5.600%, 2/15/39
7,000,000 New York State Energy Research and Development Authority, Facilities 7/05 at 102 A+ 6,941,410
Refunding Revenue Bonds, Series 1995 A (Consolidated Edison
Company of New York, Inc. Project), 6.100%, 8/15/20
11,950,000 New York State Finance Agency, Housing Project Mortgage Revenue 5/06 at 102 AAA 12,087,903
Bonds, 1996 Series A Refunding, 6.125%, 11/01/20
4,200,000 State of New York Mortgage Agency, Homeowner Mortgage Revenue 10/09 at 100 AAA 3,981,768
Bonds, Series 82, 5.550%, 10/01/19 (Alternative Minimum Tax)
12,000,000 New York State Medical Care Facilities Finance Agency, New York 2/05 at 102 AAA 13,347,240
Hospital FHA-Insured Mortgage Revenue Bonds, 1994 Series A,
6.900%, 8/15/34 (Pre-refunded to 2/15/05)
- ------------------------------------------------------------------------------------------------------------------------------------
North Dakota - 2.5%
21,075,000 Mercer County, North Dakota, Pollution Control Refunding Revenue 1/05 at 102 AAA 21,176,160
Bonds, Second 1995 Series (Basin Electric Power Cooperative-
Antelope Valley Unit 1 and Common Facilities), 6.050%, 1/01/19
- ------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 1.3%
1,015,000 Oklahoma Housing Finance Agency, Single Family Mortgage Revenue 3/01 at 102 AAA 1,045,074
Bonds, 1991 Series A, 7.200%, 3/01/11
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Oklahoma (continued)
$ 9,900,000 Pottawatomie County Development Authority, Water Revenue Bonds, 7/00 at 102 AAA $10,321,938
Series 1990 (North Deer Creek Reservoir Project), 7.375%, 7/01/26
(Pre-refunded to 7/01/00)
- ------------------------------------------------------------------------------------------------------------------------------------
Oregon - 1.1%
10,000,000 Oregon Health Sciences University, Insured Revenue Bonds, 7/06 at 102 AAA 8,933,300
1995 Series B, 5.250%, 7/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 4.6%
7,000,000 County of Allegheny, Pennsylvania, Airport Revenue Refunding Bonds, 1/08 at 101 AAA 6,376,300
Series 1997A (Pittsburgh International Airport), 5.250%, 1/01/16
(Alternative Minimum Tax)
7,250,000 Lehigh County Industrial Development Authority, Pollution Control 8/05 at 102 AAA 7,278,855
Revenue Refunding Bonds, 1995 Series A (Pennsylvania Power
and Light Company Project), 6.150%, 8/01/29
5,650,000 Commonwealth of Pennsylvania, General Obligation Bonds, 8/08 at 101 AAA 4,998,216
Second Series of 1998, 5.000%, 8/01/18
14,190,000 City of Philadelphia, Pennsylvania, Water and Sewer Revenue 8/01 at 102 AAA 15,119,445
Bonds, Sixteenth Series, 7.000%, 8/01/21 (Pre-refunded to 8/01/01)
5,000,000 Health Care Facilities Authority of Sayre, Pennsylvania, Series 3/01 at 102 AAA 5,239,300
Revenue Bonds, Guthrie Healthcare System, Series 1991A,
7.100%, 3/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 2.2%
12,500,000 Rhode Island Depositors Economic Protection Corporation, Special 8/01 at 102 AAA 13,421,250
Obligation Bonds, 1991 Series A, 7.500%, 8/01/14
(Pre-refunded to 8/01/01)
5,050,000 Rhode Island Port Authority and Economic Development Corporation, 7/04 at 102 AAA 5,261,696
Airport Revenue Bonds, 1994 Series A, 6.625%, 7/01/24
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.6%
5,170,000 The Health, Educational and Housing Facilities Board of the County 2/03 at 102 AAA 5,175,325
of Sullivan, Tennessee, Hospital Revenue Bonds, Series 1993
(Holston Valley Health Care, Inc.), 5.750%, 2/15/13
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 4.3%
8,000,000 Abilene Health Facilities Development Corporation (Texas), 9/05 at 102 AAA 8,010,480
Hospital Revenue Refunding and Improvement Bonds (Hendrick
Medical Center Project), Series 1995C, 6.150%, 9/01/25
Brazos River Authority (Texas), Revenue Refunding Bonds (Houston
Industries Incorporated Project), Series 1998C:
1,750,000 5.125%, 5/01/19 (Optional put 5/01/08) 5/08 at 102 AAA 1,534,663
2,000,000 5.125%, 11/01/20 (Optional put 11/01/08) 11/08 at 102 AAA 1,744,300
Harris County Hospital District, Refunding Revenue Bonds, Series
1990:
3,000,000 7.500%, 2/15/03 No Opt. Call AAA 3,150,930
5,000,000 7.400%, 2/15/10 No Opt. Call AAA 5,690,050
10,000,000 City of Houston (Texas), Airport System Subordinate Lien Revenue 7/08 at 100 AAA 8,488,100
Bonds, Series 1998B, 5.000%, 7/01/28 (Alternative Minimum Tax)
7,450,000 Matagorda County Navigation District Number One (Texas), Pollution 7/00 at 102 AAA 7,460,654
Control Revenue Refunding Bonds (Central Power and Light
Company Project), Series 1995, 6.100%, 7/01/28
- ------------------------------------------------------------------------------------------------------------------------------------
Utah - 1.9%
10,770,000 Intermountain Power Agency (Utah), Power Supply Revenue Refunding 7/03 at 100 A+ 9,181,748
Bonds, 1993 Series A, 5.000%, 7/01/23
6,000,000 Salt Lake City, Utah, Hospital Revenue Refunding Bonds (IHC 5/00 at 100 AAA 6,796,380
Hospitals, Inc.), Series 1988 A, 8.000%, 5/15/07
- ------------------------------------------------------------------------------------------------------------------------------------
Vermont - 0.1%
1,230,000 Vermont Housing Finance Agency, Single Family Housing Bonds, 6/07 at 101 1/2 AAA 1,220,910
Series 9, 6.000%, 5/01/37 (Alternative Minimum Tax)
<PAGE>
Portfolio of Investments
Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued)
October 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Washington - 1.0%
Public Utility District No. 1 of Chelan County, Washington,
Chelan Hydro Consolidated System Revenue Bonds, Series 1998A:
$ 8,800,000 5.250%, 7/01/33 (Alternative Minimum Tax) 7/08 at 102 AAA $ 7,637,605
1,350,000 5.250%, 7/01/33 (Alternative Minimum Tax) (Optional put 7/01/30) 7/08 at 102 AAA 1,167,395
- ------------------------------------------------------------------------------------------------------------------------------------
$ 865,401,000 Total Investments - (cost $800,795,956) - 94.7% 801,017,267
=============
Short-Term Investments - 2.6%
4,075,000 Allegheny County Industrial Development Authority, Variable Rate VMIG-1 4,075,000
Demand Bonds (Longwood at Oakmont, Inc. Project), Series 1997C,
3.500%, 7/01/27+
7,900,000 California Health Facilities Financing Authority, Insured Revenue VMIG-1 7,900,000
Bonds, (Sutter/CHS), Series 1996C, Variable Rate Demand Bonds,
3.500%, 7/01/22+
10,000,000 Harris County Health Facilities Development Corporation, Unit A-1+ 10,000,000
Priced Demand Adjustable Revenue Bonds (St. Luke's Episcopal
Hospital), Series 1997A, Variable Rate Demand Bonds, 3.650%, 2/15/27+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 21,975,000 Total Short-Term Investments - (cost $21,975,000) 21,975,000
=============
Other Assets Less Liabilities - 2.7% 22,796,820
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $845,789,087
====================================================================================================================
</TABLE>
All of the bonds in the portfolio, excluding temporary
investments in short-term municipal securities, are either
covered by Original Issue Insurance, Secondary Market
Insurance or Portfolio Insurance, or are backed by an escrow
or trust containing sufficient U.S. Government or U.S.
Government agency securities, any of which ensure the timely
payment of principal and interest.
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other
call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors):
Using the higher of Standard & Poor's or Moody's rating.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that currently in
effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
<PAGE>
Portfolio of Investments
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO)
October 31, 1999
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alabama - 4.7%
$ 3,850,000 Alabama Housing Finance Authority, Multifamily Housing 7/05 at 103 Aaa $ 4,013,317
Revenue Refunding Bonds (GNMA Collateralized - Royal Hills),
1995 Series F, 6.500%, 7/20/30
11,000,000 The Special Care Facilities Financing Authority of the City of 5/05 at 102 AAA 10,702,120
Birmingham, Alabama, Baptist Medical Centers Revenue Bonds,
Series 1995-B (Baptist Health System, Inc.), 5.875%, 11/15/20
The Special Care Facilities Financing Authority of the City of
Birmingham, Alabama, Baptist Medical Centers Revenue Bonds,
Series 1996-A (Baptist Health System, Inc.):
7,465,000 5.875%, 11/15/19 11/06 at 102 AAA 7,267,775
8,500,000 5.875%, 11/15/26 11/06 at 102 AAA 8,253,415
Jefferson County, Alabama, Sewer Revenue Capital Improvement
Warrants, Series 1999-A:
48,355,000 5.000%, 2/01/33 2/09 at 101 AAA 40,425,747
14,250,000 5.125%, 2/01/39 2/09 at 101 AAA 12,049,943
4,250,000 County Board of Education, Shelby County, Alabama, Capital Outlay 2/05 at 102 AAA 4,254,505
Refunding School Warrants, Series 1995, 5.875%, 2/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
Alaska - 3.0%
4,000,000 Alaska Energy Authority, Power Revenue Bonds, Second Series 7/00 at 102 AAA 4,148,440
(Bradley Lake Hydroelectric Project), 7.250%, 7/01/21
15,000,000 Alaska State Housing Finance Corporation, General Mortgage Revenue 6/09 at 100 AAA 14,799,150
Bonds, 1999 Series A, 6.050%, 6/01/39
15,950,000 Alaska State Housing Finance Corporation, Governmental Purpose 12/05 at 102 AAA 15,344,219
Bonds, 1995 Series A, 5.875%, 12/01/30
20,520,000 Alaska State Housing Finance Corporation, Collateralized Bonds, 12/09 at 100 AAA 20,019,722
1999A First Series (Veterans Mortgage Program), 6.250%, 6/01/39
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Arizona - 0.6%
10,725,000 The Industrial Development Authority of the County of Pima (Arizona), 1/02 at 103 AAA 11,538,599
Industrial Development Lease Obligation Refunding Revenue Bonds,
1988 Series A (Irvington Project), 7.250%, 7/15/10
- ------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 0.8%
10,100,000 Arkansas Development Finance Authority, Single Family Mortgage 9/01 at 102 AAA 10,494,102
Revenue Bonds, 1990 Series A (GNMA-Backed Securities Program),
7.400%, 9/01/23 (Alternative Minimum Tax)
City of Fort Smith, Arkansas, Water and Sewer Revenue Bonds, Series 1999:
1,215,000 5.300%, 10/01/12 10/09 at 100 AAA 1,188,173
1,440,000 5.400%, 10/01/13 10/09 at 100 AAA 1,406,218
1,575,000 5.450%, 10/01/14 10/09 at 100 AAA 1,529,703
- ------------------------------------------------------------------------------------------------------------------------------------
California - 10.2%
6,135,000 California Housing Finance Agency, Housing Revenue Bonds (Insured), 8/04 at 102 AAA 6,238,866
1994 Series C, 6.250%, 8/01/25
5,000,000 California Housing Finance Agency, Multifamily Housing Revenue 8/08 at 101 1/2 AAA 4,484,800
Bonds III, 1998 Series B, 5.500%, 8/01/39 (Alternative Minimum Tax)
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) 7/01 at 102 AAA 9,538,110
14,000,000 6.650%, 7/01/21 (Pre-refunded to 7/01/01) 7/01 at 102 AAA 14,870,660
18,655,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 2/09 at 69 21/32 AAA 7,076,401
1999 Series B, 0.000%, 2/01/16
California Rural Home Mortgage Finance Authority, Single Family
Mortgage Revenue Bonds (Mortgage-Backed Securities Program),
1996 Series A:
2,765,000 7.550%, 11/01/26 (Alternative Minimum Tax) No Opt. Call AAA 3,012,550
2,270,000 7.750%, 5/01/27 (Alternative Minimum Tax) No Opt. Call AAA 2,495,547
<PAGE>
Portfolio of Investments
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
October 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
California (continued)
$ 6,000,000 California Statewide Communities Development Authority, 7/06 at 102 AAA $ 5,798,220
Certificates of Participation, Huntington Memorial Hospital,
5.800%, 7/01/26
3,100,000 Campbell Union School District, Santa Clara County, California, 8/04 at 102 AAA 3,393,136
1994 General Obligation Bonds, Series A, 6.250%, 8/01/19
(Pre-refunded to 8/01/04)
8,200,000 Castaic Lake Water Agency (California), Refunding Revenue 8/04 at 102 AAA 8,386,550
Certificates of Participation (Water System Improvement Projects),
Series 1994A, 6.300%, 8/01/20
11,750,000 East Bay Municipal Utility District (Alameda and Contra Costa Counties, 6/03 at 102 AAA 10,356,920
California), Water System Subordinated Revenue Refunding Bonds,
Series 1993A, 5.000%, 6/01/21
5,500,000 Fallbrook Union High School District (San Diego County, California), 9/04 at 102 AAA 6,026,570
1994 General Obligation Bonds, Series A, 6.250%, 9/01/19
(Pre-refunded to 9/01/04)
9,000,000 County of Orange, California, Refunding Recovery Bonds, 6/05 at 102 AAA 9,040,590
1995 Series A, 5.750%, 6/01/15
12,500,000 County of Orange, California, 1996 Recovery Certificates of 7/06 at 102 AAA 12,519,625
Participation, Series A, 6.000%, 7/01/26
6,500,000 City of Salinas, California, Housing Facility Refunding Revenue Bonds, 7/04 at 102 AAA 6,778,070
Series 1994A (GNMA Collateralized Villa Serra Project), 6.600%, 7/20/30
18,000,000 Airports Commission, City and County of San Francisco, California, 5/06 at 101 AAA 16,556,400
San Francisco International Airport, Second Series Revenue Bond,
Issue 13B, 5.500%, 5/01/26 (Alternative Minimum Tax)
8,500,000 Airports Commission, City and County of San Francisco, California, 5/05 at 101 AAA 8,592,565
San Francisco International Airport, Second Series Revenue Bonds,
Issue 11 (Noise Insulation Program), 6.250%, 5/01/26
(Alternative Minimum Tax)
37,395,000 San Joaquin Hills Transportation Corridor Agency, Toll Road Refunding 1/07 at 102 AAA 33,192,924
Revenue Bonds, Series 1997A, 5.250%, 1/15/30
11,000,000 Santa Ana Financing Authority, Police Administration and Housing No Opt. Call AAA 11,651,640
Facility Lease Revenue Bonds, Series 1994A, 6.250%, 7/01/24
5,500,000 Santa Clara County Financing Authority, Lease Revenue Bonds 11/04 at 102 AAA 6,165,885
(VMC Facility Replacement Project), 1994 Series A, 6.750%, 11/15/20
(Pre-refunded to 11/15/04)
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado - 0.8%
Board of Water Commissioners, City and County of Denver,
Colorado, Certificates of Participation, Series 1991:
8,390,000 6.625%, 11/15/11 (Pre-refunded to 11/15/01) 11/01 at 101 AAA 8,864,035
5,760,000 6.625%, 11/15/11 11/01 at 101 AAA 6,036,307
- ------------------------------------------------------------------------------------------------------------------------------------
Connecticut - 0.2%
2,500,000 State of Connecticut, Health and Educational Facilities Authority, 7/04 at 101 AAA 2,762,475
Revenue Bonds, Choate Rosemary Hall Issue, Series A,
7.000%, 7/01/25 (Pre-refunded to 7/01/04)
- ------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 0.8%
6,000,000 District of Columbia, Hospital Improvement and Refunding Revenue 7/02 at 102 AAA 6,024,720
Bonds (Children's Hospital Issue), Series 1992A, 6.250%, 7/15/19
4,495,000 District of Columbia Housing Finance Agency, Collateralized Single 6/00 at 102 AAA 4,605,667
Family Mortgage Revenue Bonds, Series 1988C, 7.850%, 12/01/22
(Alternative Minimum Tax)
4,820,000 District of Columbia Housing Finance Agency, Collateralized Single 12/01 at 102 AAA 4,961,949
Family Mortgage Revenue Bonds, Series 1990B, 7.100%, 12/01/24
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Florida - 0.6%
1,374,000 Housing Finance Authority of Dade County (Florida), Single Family 12/01 at 102 AAA 1,418,449
Mortgage Revenue Refunding Bonds, 1991 Series D, 6.950%, 12/15/12
2,745,000 Escambia County Housing Finance Authority (Florida), Single Family 4/05 at 102 AAA 2,849,310
Mortgage Revenue Bonds (Multi-County Program), Series 1995,
6.950%, 10/01/27 (Alternative Minimum Tax)
6,425,000 Florida Housing Finance Agency, Home Ownership Revenue Refunding No Opt. Call AAA 6,801,891
Bonds, 1987 Series G1, 8.595%, 11/01/17
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Georgia - 0.8%
$ 6,760,000 City of Atlanta (Georgia), Water and Wastewater Revenue Bonds, 5/09 at 101 AAA $ 5,645,006
Series 1999A, 5.000%, 11/01/38
5,000,000 The Hospital Authority of Hall County and the City of Gainesville, 10/05 at 102 AAA 4,973,200
Revenue Anticipation Certificates (Northeast Georgia Healthcare
Project), Series 1995, 6.000%, 10/01/20
5,000,000 The Glynn-Brunswick Memorial Hospital Authority, Revenue 8/06 at 102 AAA 4,789,300
Anticipation Certificates (Southeast Georgia Health Systems Project),
Series 1996, 5.250%, 8/01/13
- ------------------------------------------------------------------------------------------------------------------------------------
Hawaii - 1.3%
24,250,000 Department of Budget and Finance of the State of Hawaii, Special 5/06 at 101 AAA 24,314,748
Purpose Revenue Bonds (Hawaii Electric Company, Inc. and
Subsidiaries Project), Series 1996A, 6.200%, 5/01/26 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Idaho - 0.5%
Idaho Housing Agency, Single Family Mortgage Bonds, 1994 Series B:
2,735,000 6.750%, 7/01/22 No Opt. Call Aa1 2,848,393
2,615,000 6.900%, 7/01/26 (Alternative Minimum Tax) No Opt. Call Aa1 2,753,229
3,885,000 Idaho Housing Agency, Single Family Mortgage Bonds, 1995 Series B, 1/05 at 102 Aaa 3,975,715
6.600%, 7/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 9.2%
4,055,000 Central Lake County Joint Action Water Agency, Lake County, Illinois, 2/03 at 102 Aa2 4,059,055
General Obligation Water Refunding Bonds, Series 1992, 6.000%, 2/01/19
10,000,000 City of Chicago (Illinois), General Obligation Adjustable Rate Bonds, 7/02 at 101 1/2 AAA 10,743,300
Central Public Library Project, Series C of 1988, 6.850%, 1/01/17
(Pre-refunded to 7/01/02)
City of Chicago (Illinois), Chicago Midway Airport Revenue Bonds,
Series 1998A:
30,000,000 5.125%, 1/01/31 (Alternative Minimum Tax) 1/09 at 101 AAA 25,372,200
12,750,000 5.125%, 1/01/35 (Alternative Minimum Tax) 1/09 at 101 AAA 10,647,015
10,500,000 City of Chicago (Illinois), Chicago Midway Airport Revenue Bonds, 1/09 at 101 AAA 8,763,510
Series 1998B, 5.000%, 1/01/31
The County of Cook, Illinois, General Obligation Bonds, Series 1991:
18,430,000 6.750%, 11/01/18 (Pre-refunded to 11/01/01) 11/01 at 102 AAA 19,665,916
26,475,000 6.250%, 11/01/21 (Pre-refunded to 11/01/01) 11/01 at 102 AAA 27,998,107
Board of Governors of State Colleges and Universities, Eastern
Illinois University, Auxiliary Facilities System Revenue Bonds,
Series 1989:
12,355,000 0.000%, 10/01/09 10/04 at 74 1/16 AAA 7,204,818
16,470,000 0.000%, 4/01/16 (Pre-refunded to 10/01/04) 10/04 at 47 1/16 AAA 6,102,794
1,615,000 Illinois Housing Development Authority, Residential Mortgage Revenue 2/00 at 102 Aa1 1,631,974
Bonds, 1989 Series A, 7.400%, 2/01/20 (Alternative Minimum Tax)
20,000,000 Illinois Health Facilities Authority, Brokaw-Mennonite Association, 8/02 at 102 AAA 20,083,800
Revenue Refunding Bonds, Series 1992 (BroMenn Healthcare),
6.250%, 8/15/18
3,615,000 State of Illinois, Civic Center Bonds (Dedicated Tax Revenue), 12/00 at 102 AAA 3,797,015
Series 1990-A, 7.000%, 12/15/10
State of Illinois Department of Central Management Services, Illinois
Student Assistance Commission:
2,965,000 6.875%, 7/01/07 (Pre-refunded to 7/01/02) 7/02 at 102 AAA 3,200,273
6,085,000 6.950%, 7/01/13 (Pre-refunded to 7/01/02) 7/02 at 102 AAA 6,578,250
4,560,000 County of Macon, Illinois, Revenue Bonds, Millikin University, 10/05 at 100 AAA 4,903,186
Series 1995, 6.250%, 10/01/16
5,000,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry 6/04 at 102 AAA 5,495,950
and Will Counties, Illinois, General Obligation Bonds, Series 1994D,
6.750%, 6/01/25 (Pre-refunded to 6/01/04)
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 4.5%
5,000,000 Brownsburg School Building Corporation (Hendricks County, Indiana), 2/10 at 101 AAA 4,653,000
First Mortgage Bonds, Series 1999, 5.550%, 2/01/24
10,500,000 Hospital Authority of the City of Fort Wayne, Indiana, Revenue Bonds, 11/02 at 102 A+*** 11,258,835
Series 1992 (Parkview Memorial Hospital, Inc. Project),
6.400%, 11/15/22 (Pre-refunded to 11/15/02)
10,000,000 Indiana Health Facility Financing Authority, Hospital Revenue Refunding 5/06 at 102 AAA 9,537,800
and Improvement Bonds, Series 1995 (Community Hospitals Projects),
5.700%, 5/15/22
<PAGE>
Portfolio of Investments
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
October 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Indiana (continued)
$ 1,160,000 Indiana Housing Finance Authority, Single Family Mortgage Revenue 7/00 at 102 Aaa $ 1,195,624
Bonds (GNMA Collateralized Home Mortgage Program),
1990 Series B, 7.800%, 1/01/22 (Alternative Minimum Tax)
430,000 Indiana Housing Finance Authority, Single Family Mortgage Revenue 7/00 at 102 Aaa 449,286
Bonds (GNMA Collateralized Home Mortgage Program),
1990 Series D, 7.800%, 1/01/22 (Alternative Minimum Tax)
20,000,000 Indianapolis (Indiana), Local Public Improvement Bond Bank, No Opt. Call AAA 3,423,800
Series 1999E, 0.000%, 2/01/28
12,250,000 City of Lawrenceburg, Indiana, Pollution Control Revenue Refunding 4/02 at 102 AAA 13,049,558
Bonds (Indiana Michigan Power Company Project), Series D,
7.000%, 4/01/15
12,950,000 Marion County Convention and Recreational Facilities Authority 6/01 at 102 AAA 13,742,411
(Indiana), Excise Taxes Lease Rental Revenue Bonds, Series 1991B,
7.000%, 6/01/21 (Pre-refunded to 6/01/01)
9,545,000 New Prairie School Building Corporation (LaPorte and St. Joseph 7/04 at 102 AAA 10,697,559
Counties, Indiana), First Mortgage Revenue Bonds, Series 1994,
7.200%, 7/15/21 (Pre-refunded to 7/15/04)
14,000,000 Holy Cross Health System Corporation, Indiana Hospital Revenue 12/01 at 102 AAA 15,024,800
Bonds, Hospital Authority of Marshall County, Series1991
(Holy Cross Parkview Hospital, Inc.), 7.000%, 12/01/12
(Pre-refunded to 12/01/01)
- ------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.3%
5,000,000 City of Davenport, Iowa, Hospital Facility Revenue Bonds 7/02 at 102 AAA 5,317,500
(Mercy Hospital Project), Series 1992, 6.250%, 7/01/22
(Pre-refunded to 7/01/02)
- ------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.3%
1,550,000 Sedgwick and Shawnee Counties, Kansas, GNMA Collateralized 6/01 at 103 Aaa 1,606,451
Mortgage Revenue Bonds, Senior 1991 Series A, 7.300%, 12/01/12
5,000,000 University of Kansas Hospital Authority, Health Facilities Revenue 9/09 at 100 AAA 4,736,000
Bonds (KU Health System), Series 1999A, 5.650%, 9/01/29
- ------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 1.3%
10,000,000 City of Danville, Kentucky, Multi-City Lease Revenue Bonds (Louisville 3/02 at 102 AAA 10,714,900
and Jefferson County Metropolitan Sewer District, Sewer and
Drainage System Revenue Project), Series 1991-G,
6.800%, 3/01/19 (Pre-refunded to 3/01/02)
53,000,000 Jefferson County, Kentucky, Capital Projects Corporation Lease Revenue 2/01 at 24 11/16 AAA 12,359,600
Bonds, Series 1989B, 0.000%, 8/15/19 (Pre-refunded to 2/15/01)
- ------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 2.8%
13,500,000 Parish of De Soto, State of Louisiana, Pollution Control Revenue 9/09 at 102 AAA 13,110,660
Refunding Bonds (Cleco Utility Group, Inc. Project), Series 1999,
5.875%, 9/01/29
15,650,000 Louisiana Public Facilities Authority, Hospital Revenue Refunding 5/02 at 102 AAA 16,825,002
Bonds (Southern Baptist Hospital Project), Series 1992,
6.800%, 5/15/12 (Pre-refunded to 5/15/02)
5,340,000 City of New Orleans, Louisiana, Public Improvement Bonds, 9/02 at 100 AAA 5,704,081
Issue of 1992, 7.000%, 9/01/19 (Pre-refunded to 9/01/02)
8,700,000 Orleans Levee District (A Political Subdivision of the State of Louisiana), 12/05 at 103 AAA 8,763,162
Public Improvement Bonds, Series 1986, 5.950%, 11/01/15
3,000,000 Parish of St. Charles, State of Louisiana, Pollution Control Revenue 6/01 at 102 AAA 3,177,180
Bonds (Louisiana Power and Light Company Project), Series 1991,
7.500%, 6/01/21 (Alternative Minimum Tax)
3,500,000 Hospital Service District No. 1 of the Parish of Tangipahoa, 2/04 at 102 AAA 3,518,445
State of Louisiana, Hospital Revenue Bonds, Series 1994,
6.250%, 2/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
Maine - 0.5%
8,520,000 Maine Health and Higher Educational Facilities Authority, Revenue 7/01 at 102 AAA 8,713,489
Bonds, Series 1991, 6.375%, 7/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 6.5%
6,000,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/01 at 102 AAA 6,357,600
Bonds, Brigham and Women's Hospital Issue, Series D,
6.750%, 7/01/24 (Pre-refunded to 7/01/01)
10,500,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/02 at 102 AAA 10,959,480
Bonds, New England Medical Center Hospitals Issue, Series F,
6.625%, 7/01/25
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Massachusetts (continued)
$ 5,850,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/02 at 102 AAA $ 6,052,352
Bonds, South Shore Hospital Issue, Series D, 6.500%, 7/01/22
8,400,000 Massachusetts Health and Educational Facilities Authority, Revenue 10/05 at 102 AAA 8,534,316
Bonds, Berkshire Health Systems Issue, Series D, 6.000%, 10/01/13
6,685,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/08 at 102 AAA 5,794,357
Bonds, Caregroup Issue, Series A, 5.000%, 7/01/18
20,000,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/08 at 101 AAA 16,771,600
Bonds, Boston Medical Center Issue, Series A, 5.000%, 7/01/29
6,745,000 Massachusetts Housing Finance Agency, Housing Development 6/08 at 101 AAA 6,298,818
Bonds, 1998 Series A, 5.375%, 6/01/16 (Alternative Minimum Tax)
12,990,000 Massachusetts Housing Finance Agency, Single Family Housing 6/01 at 102 Aa 13,342,938
Revenue Bonds, Series 17, 7.150%, 12/01/24 (Alternative Minimum Tax)
4,865,000 Massachusetts Housing Finance Agency, Housing Revenue Refunding 12/05 at 102 AAA 4,911,023
Bonds, 1995 Series A, 6.100%, 12/01/16
47,350,000 Massachusetts Turnpike Authority, Metropolitan Highway System 1/07 at 102 AAA 39,465,278
Revenue Bonds, 1997 Series C (Senior), 5.000%, 1/01/37
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan - 5.5%
Cheboygan Area Schools, Counties of Cheboygan and Presque Isle,
State of Michigan, 1996 School Building and State Bonds (General
Obligation - Unlimited Tax):
3,180,000 5.700%, 5/01/16 (Pre-refunded to 5/01/07) 5/07 at 100 AAA 3,335,120
2,750,000 5.700%, 5/01/16 5/07 at 100 AAA 2,709,850
11,245,000 The Economic Development Corporation of the City of Detroit, 5/01 at 102 AAA 11,794,431
Resource Recovery Revenue Bonds, Series 1991A, 6.875%, 5/01/09
(Alternative Minimum Tax)
20,300,000 City of Detroit, Michigan, Sewage Disposal System Revenue Bonds, 7/01 at 102 AAA 21,462,378
Series 1991, 6.625%, 7/01/21 (Pre-refunded to 7/01/01)
13,500,000 City of Detroit, Michigan, Water Supply System Revenue and Revenue 7/04 at 102 AAA 11,704,500
Refunding Bonds, Series 1993, 5.000%, 7/01/23
18,700,000 City of Detroit, Michigan, Water Supply System Revenue Senior Lien 7/07 at 101 AAA 16,021,038
Bonds, Series 1997-A, 5.000%, 7/01/27
8,000,000 Gaylord Community Schools, Counties of Otsego and Antrim, 5/07 at 37 3/4 AAA 2,046,640
State of Michigan, 1992 School Building and Site Refunding Bonds,
0.000%, 5/01/21 (Pre-refunded to 5/01/07)
8,500,000 County of Jackson Hospital Finance Authority, Hospital Revenue 6/03 at 102 AAA 7,577,835
Refunding Bonds (W. A. Foote Memorial Hospital, Jackson Michigan),
Series 1993A, 5.250%, 6/01/23
1,515,000 Michigan State Housing Development Authority, Rental Housing 1/02 at 102 AA- 1,593,886
Revenue Bonds, 1991 Series A, 7.150%, 4/01/10
(Alternative Minimum Tax)
10,000,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue 12/01 at 102 AAA 10,549,200
Bonds (The Detroit Edison Company Pollution Control Bonds Project),
Collateralized Series 1991DD, 6.875%, 12/01/21
27,000,000 Okemos Public School, County of Ingham, State of Michigan, 5/06 at 34 17/32 AAA 6,704,100
1991 School Building and Site Bonds, Series I, 0.000%, 5/01/21
(Pre-refunded to 5/01/06)
6,125,000 Western Townships Utilities Authority, Sewage Disposal System 1/02 at 100 AAA 6,299,318
Refunding Bonds, Series 1991, 6.500%, 1/01/19
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 0.6%
5,430,000 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 1/04 at 102 AA 5,566,890
1994 Series M, 6.700%, 7/01/26 (Alternative Minimum Tax)
4,785,000 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 7/02 at 102 AA+ 4,914,769
1992 Series E, 6.850%, 1/01/24 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Missouri - 0.2%
4,295,000 Missouri Housing Development Commission, Single Family Mortgage 1/02 at 102 AAA 4,438,539
Revenue Bonds (GNMA Mortgage-Backed Securities Program),
1991 Series C, 6.900%, 7/01/18
<PAGE>
Portfolio of Investments
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
October 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Montana - 1.5%
$ 26,000,000 City of Forsyth, Rosebud County, Montana, Pollution Control Revenue 3/02 at 102 AAA $27,484,860
Refunding Bonds (Puget Sound Power and Light Company
Colstrip Project), Series 1992, 6.800%, 3/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 0.1%
2,000,000 Hospital Authority No.1 of Lancaster County, Nebraska, Hospital 6/08 at 101 AAA 1,833,660
Revenue Bonds, Series 1997B (Bryan Memorial Hospital Project),
5.375%, 6/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada - 2.8%
29,775,000 Clark County, Nevada, Industrial Development Revenue Bonds 6/00 at 102 AAA 30,911,810
(Nevada Power Company Project), Series 1990, 7.800%, 6/01/20
(Alternative Minimum Tax)
11,000,000 Clark County, Nevada, Las Vegas-McCarran International Airport 7/02 at 102 AAA 11,635,690
Passenger Facility Charge Revenue Bonds, 1992 Series A,
6.000%, 7/01/22 (Pre-refunded to 7/01/02)
5,005,000 Nevada Housing Division, Single Family Program Bonds, 4/04 at 102 Aa2 5,122,317
1994 Issue B-1 Senior Bonds, 6.700%, 10/01/17
3,865,000 Nevada Housing Division, Single Family Mortgage Bonds, 4/04 at 102 Aa2 3,999,889
1994 Series B-2 Senior Bonds, 6.950%, 10/01/26 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 0.3%
4,950,000 New Hampshire Higher Educational and Health Facilities Authority, 1/03 at 102 AAA 5,046,971
Hospital Revenue Bonds, Lakes Region Hospital Association Issue,
Series 1993, 5.750%, 1/01/11
- ------------------------------------------------------------------------------------------------------------------------------------
New York - 4.6%
Long Island Power Authority (New York), Electric System General
Revenue Bonds, Series 1998A:
11,095,000 5.000%, 12/01/18 6/08 at 101 AAA 9,700,691
8,685,000 5.300%, 12/01/19 6/08 at 101 AAA 7,926,365
5,000,000 5.250%, 12/01/26 6/08 at 101 AAA 4,467,050
8,265,000 The City of New York, General Obligation Bonds, Fiscal 1992 Series C, 8/02 at 101 1/2 AAA 8,774,785
Fixed Rate Bonds, Subseries C-1, 6.250%, 8/01/10 (Pre-refunded to 8/01/02)
10,000,000 The City of New York, General Obligation Bonds, Fiscal 1998 Series H, 8/08 at 101 AAA 8,724,400
5.125%, 8/01/25
10,000,000 New York City Municipal Water Finance Authority, Water and Sewer 6/06 at 101 AAA 9,675,300
System Revenue Bonds, Fiscal 1996 Series B, 5.750%, 6/15/26
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 (Pre-refunded to 7/01/04) 7/04 at 100 AAA 3,199,920
6,400,000 6.750%, 7/01/24 (Pre-refunded to 7/01/04) 7/04 at 102 AAA 7,062,720
9,000,000 Dormitory Authority of the State of New York, The New York Hospital 8/09 at 101 AAA 8,713,350
Medical Center of Queens, FHA-Insured Mortgage Hospital Revenue
Bonds, Series 1999, 5.250%, 8/01/19
15,600,000 Port of Authority of New York and New Jersey, Consolidated Revenue 1/05 at 101 AAA 16,450,356
Bonds, Ninety-Seventh Series, 6.650%, 1/15/23 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 2.6%
45,000,000 City of Charlotte, North Carolina, Certificates of Participation, 12/01 at 102 AAA 48,127,950
Series 1991 (Convention Facility Project), 6.750%, 12/01/21
(Pre-refunded to 12/01/01)
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio - 4.2%
5,000,000 Avon Lake City School District, Lorain County, Ohio, School Building 12/09 at 102 AAA 4,708,400
Construction Bonds, Series 1999 (General Obligation-Unlimited Tax),
5.500%, 12/01/26
12,550,000 City of Cleveland, Ohio, Waterworks Improvement First Mortgage 1/02 at 102 AAA 13,332,493
Revenue Bonds, Series F, 6.500%, 1/01/21 (Pre-refunded to 1/01/02)
9,000,000 County of Lucas, Ohio, Hospital Improvement Revenue Bonds, 8/02 at 102 AAA 9,547,290
Series 1992 (St. Vincent Medical Center), 6.625%, 8/15/22
21,100,000 County of Lucas, Ohio, Hospital Revenue Bonds, Series 1999 11/09 at 101 AAA 18,658,519
(ProMedica Healthcare Obligated Group), 5.375%, 11/15/39
8,880,000 Ohio Housing Finance Agency, Residential Mortgage Revenue Bonds 3/05 at 102 AAA 9,162,118
(GNMA Mortgage-Backed Securities Program), 1995 Series A-2,
6.625%, 3/01/26 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Ohio (continued)
Ohio Air Quality Development Authority, Air Quality Development
Revenue Refunding Bonds (JMG Funding, Limited Partnership Project),
Series 1994:
$ 13,750,000 6.375%, 1/01/29 (Alternative Minimum Tax) 10/04 at 102 AAA $13,909,913
8,000,000 6.375%, 4/01/29 (Alternative Minimum Tax) 10/04 at 102 AAA 8,093,040
- ------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 1.8%
510,000 Oklahoma Housing Finance Agency, Single Family Mortgage Revenue 3/01 at 102 AAA 524,351
Bonds, 1991 Series A, 7.150%, 3/01/07
28,640,000 Oklahoma Housing Finance Agency, GNMA Collateralized Single Family No Opt. Call AAA 30,876,784
Mortgage Revenue Bonds, Series 1987A, 7.997%, 8/01/18
(Alternative Minimum Tax)
1,135,000 Tulsa County Home Finance Authority, GNMA Collateralized Mortgage 12/01 at 102 AAA 1,167,609
Revenue Bonds, Series 1991C, 7.100%, 6/01/22
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Oregon - 0.3%
4,910,000 State of Oregon Housing and Community Services Department, 7/05 at 102 Aa2 5,037,709
Mortgage Revenue Bonds (Single Family Mortgage Program),
1995 Series A, 6.450%, 7/01/26 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 5.7%
14,700,000 County of Allegheny (Pennsylvania), Airport Revenue Bonds, 1/02 at 102 AAA 15,229,641
Series 1992A and 1992B (Greater Pittsburgh International Airport),
6.625%, 1/01/22 (Alternative Minimum Tax)
7,000,000 Beaver County (Pennsylvania), Industrial Development Authority, 9/01 at 102 AAA 7,403,340
Pollution Control Revenue Refunding Bonds, 1991 Series A,
Pennsylvania Power Company, Mansfield Project, 7.150%, 9/01/21
24,800,000 Butler County Hospital Authority (Butler County, Pennsylvania), Hospital 6/01 at 102 AAA 26,313,792
Revenue Bonds, Series 1991 A (North Hills Passavant Hospital),
7.000%, 6/01/22 (Pre-refunded to 6/01/01)
Delaware County Industrial Development Authority, Pollution Control
Revenue Refunding Bonds, 1991 Series A (Philadelphia Electric
Company Project):
5,000,000 7.375%, 4/01/21 4/01 at 102 A 5,247,300
5,000,000 7.375%, 4/01/21 4/01 at 102 AAA 5,268,500
5,000,000 Delaware Valley Regional Finance Authority, Local Government No Opt. Call AAA 4,801,450
Revenue Bonds, Series 1997B, 5.700%, 7/01/27
10,000,000 The Harrisburg Authority (Dauphin County, Pennsylvania), 6/01 at 101 AAA 10,464,500
Commonwealth of Pennsylvania Lease Bonds, Series of 1991,
6.625%, 6/01/13 (Pre-refunded to 6/01/01)
4,000,000 Lehigh County (Pennsylvania), General Purpose Authority, 7/08 at 101 Aaa 3,354,320
Hospital Revenue Bonds (Lehigh Valley Health Network),
Series C of 1998, 5.000%, 7/01/28
7,120,000 Lehigh County (Pennsylvania), General Purpose Authority, Hospital 7/04 at 102 AAA 7,703,128
Revenue Bonds (Lehigh Valley Hospital, Inc.), Series A of 1994,
6.250%, 7/01/22 (Pre-refunded to 7/01/04)
8,950,000 Montgomery County Industrial Development Authority, Pollution 6/02 at 102 AAA 9,301,109
Control Revenue Refunding Bonds, 1992 Series A (Philadelphia
Electric Company Project), 6.625%, 6/01/22
7,000,000 Certificates of Participation, Commonwealth of Pennsylvania, 11/01 at 102 AAA 7,286,440
Harristown Development Corporation, 6.250%, 5/01/16
3,000,000 South Fork Municipal Authority (Pennsylvania), Hospital Revenue 7/08 at 101 AAA 2,515,740
Bonds, Series B of 1998 (Conemaugh Valley Memorial Hospital
Project), 5.000%, 7/01/28
- ------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 3.5%
38,650,000 The Convention Center Authority (Rhode Island), Revenue Bonds, 5/01 at 102 AAA 40,813,241
1991 Series A, 6.700%, 5/15/20 (Pre-refunded to 5/15/01)
2,195,000 Providence Housing Development Corporation (Rhode Island), Mortgage 7/04 at 102 AAA 2,311,269
Revenue Refunding Bonds, Series 1994A (FHA-Insured Mortgage
Loan - Barbara Jordan Apartments Project), 6.750%, 7/01/25
20,475,000 Rhode Island Depositors Economic Protection Corporation, Special 2/11 at 100 AAA 20,293,182
Obligation Refunding Bonds, 1992 Series B, 5.250%, 8/01/21
(Pre-refunded to 2/01/11)
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 0.8%
22,000,000 Piedmont Municipal Power Agency (South Carolina), Electric Revenue No Opt. Call AAA 10,194,197
Bonds, 1988 Refunding Series, 0.000%, 1/01/13
<PAGE>
Portfolio of Investments
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
October 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
South Carolina (continued)
South Carolina Jobs-Economic Development Authority, Hospital
Facilities Revenue Bonds, Series 1995, (Oconee Memorial
Hospital, Inc.):
$ 3,000,000 6.150%, 3/01/15 3/05 at 102 AAA $ 3,065,700
775,000 6.150%, 3/01/25 3/05 at 102 AAA 774,233
- ------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.4%
7,500,000 Metropolitan Nashville Airport Authority (Tennessee), Airport 7/01 at 102 AAA 7,867,875
Improvement Revenue Bonds, Refunding Series 1991C, 6.600%, 7/01/15
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 3.4%
9,500,000 Coastal Bend Health Facilities Development Corporation (Texas), 11/02 at 102 AAA 10,090,710
Incarnate Word Health Services Revenue Bonds, Series 1993-A,
6.000%, 11/15/22
Harris County, Texas, Toll Road Senior Lien Revenue Bonds,
Series 1989:
9,000,000 0.000%, 8/15/18 (Pre-refunded to 8/15/09) 8/09 at 53 27/32 AAA 2,869,650
39,000,000 0.000%, 8/15/19 (Pre-refunded to 8/15/09) 8/09 at 50 1/4 AAA 11,608,350
7,280,000 0.000%, 8/15/20 (Pre-refunded to 8/15/09) 8/09 at 46 29/32 AAA 2,022,821
5,085,000 0.000%, 8/15/21 (Pre-refunded to 8/15/09) 8/09 at 43 25/32 AAA 1,318,947
14,160,000 City of Houston, Texas, Water and Sewer System Junior Lien Revenue 12/01 at 102 AAA 14,566,675
Refunding Bonds, Series 1991C, 6.375%, 12/01/17
3,945,000 Retama Development Corporation, Special Facilities Revenue Bonds No Opt. Call AAA 5,767,669
(Retama Park Racetrack Project), Series 1993, 10.000%, 12/15/17
14,350,000 Texas Department of Housing and Community Affairs, Single Family 9/06 at 102 AAA 14,493,931
Mortgage Revenue Bonds, 1996 Series D, 6.250%, 9/01/28
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Utah - 1.2%
6,035,000 Utah Housing Finance Agency, Multifamily Housing Refunding Bonds, 1/02 at 102 AAA 6,402,773
1992 Issue A (FHA-Insured Mortgage Loans), 7.400%, 7/01/24
1,885,000 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/04 at 102 Aaa 1,931,446
1994 Issue D (Federally Insured or Guaranteed Mortgage Loans),
6.750%, 1/01/27 (Alternative Minimum Tax)
17,400,000 Weber County, Utah, Hospital Revenue Bonds, Series 1999 8/09 at 101 AAA 14,431,212
(IHC Health Services, Inc.), 5.000%, 8/15/30
- ------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.4%
8,000,000 Industrial Development Authority of Loudoun County, Virginia, 6/05 at 102 AAA 7,825,680
Hospital Revenue Bonds (Loudoun Hospital Center), Series 1995,
5.800%, 6/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
Washington - 2.7%
2,515,000 Public Utility District No. 1 of Douglas County, Washington, 9/00 at 102 AA- 2,610,520
Wells Hydro-Electric Revenue Bonds, Series of 1990,
7.800%, 9/01/18 (Alternative Minimum Tax)
4,250,000 Public Utility District No. 1 of Snohomish County, Washington, 1/02 at 102 AAA 4,620,175
Generation System Revenue Bonds, Series 1989, 6.650%, 1/01/16
19,750,000 Washington Health Care Facilities Authority, Revenue Bonds, 12/99 at 102 AAA 20,191,018
Series 1989 (Group Health Cooperative of Puget Sound, Seattle),
7.200%, 12/01/15
12,300,000 Washington Health Care Facilities Authority, Revenue Bonds, 10/08 at 101 Aaa 10,191,780
Series 1998 (Children's Hospital and Regional Medical Center),
5.000%, 10/01/28
4,100,000 Washington Public Power Supply System, Nuclear Project No. 1 7/02 at 102 Aaa 4,141,615
Refunding Revenue Bonds, Series 1992A, 6.250%, 7/01/17
8,500,000 Washington Public Power Supply System, Nuclear Project No. 3 7/03 at 102 AAA 8,154,220
Refunding Revenue Bonds, Series 1993B, 5.600%, 7/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 1.5%
10,000,000 The County Commission of Harrison County, West Virginia, Solid Waste 5/03 at 102 A+ 9,790,100
Disposal Revenue Bonds (West Penn Power Company, Harrison
Station Project), Series B, 6.300%, 5/01/23 (Alternative Minimum Tax)
4,100,000 West Virginia Water Development Authority, Water Development 11/01 at 102 AAA 4,362,359
Revenue Refunding Bonds (Loan Program), 1991 Series A, 7.000%, 11/01/25
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
West Virginia (continued)
$ 10,000,000 West Virginia Water Development Authority, Water Development 11/09 at 102 AAA $ 8,513,400
Revenue Bonds (Loan Program II), 1999 Series A, 5.125%, 11/01/39
(Optional put 11/01/11)
5,050,000 State of West Virginia, University of West Virginia Board of Trustees, 5/02 at 100 AAA 5,330,477
Dormitory Revenue Bonds (West Virginia University Project),
1992 Series A, 6.750%, 5/01/17 (Pre-refunded to 5/01/02)
- ------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 3.2%
8,270,000 Wisconsin Housing and Economic Development Authority, Housing 1/02 at 102 AAA 8,709,799
Revenue Bonds, 1992 Series A, 6.850%, 11/01/12
8,150,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, 8/01 at 102 AAA 8,702,240
Series 1991 (St. Luke's Medical Center Project), 7.100%, 8/15/19
(Pre-refunded to 8/15/01)
17,710,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, 12/01 at 102 AAA 18,941,194
Series 1991-B (Novus Health Group), 6.750%, 12/15/20
(Pre-refunded to 12/15/01)
10,000,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/09 at 101 Aaa 9,109,600
Bonds Series 1999 (Mercy Health System Corporation), 5.500%, 8/15/25
15,000,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, 2/07 at 102 AAA 14,160,450
Series 1997 (Marshfield Clinic Project), 5.750%, 2/15/27
- ------------------------------------------------------------------------------------------------------------------------------------
$1,959,514,000 Total Investments - (cost $1,753,857,748) - 97.0% 1,781,212,211
==============
Short-Term Investments - 1.0%
16,805,000 City of Irvine (California), Assessment District No. 87-8, Limited VMIG-1 16,805,000
Obligation Improvement Bonds, Variable Rate Demand Bonds,
Adjustable Rate Series, 3.500%, 9/02/24+
400,000 Moffat County Pollution Control Revenue Bonds (Pacificorp Projects), VMIG-1 400,000
Variable Rate Demand Bonds, 3.500%, 5/01/13+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 17,205,000 Total Short-Term Investments - (cost $17,205,000) 17,205,000
=============
Other Assets Less Liabilities - 2.0% 37,098,618
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,835,515,829
====================================================================================================================
</TABLE>
All of the bonds in the portfolio, excluding temporary
investments in short-term municipal securities, are either
covered by Original Issue Insurance, Secondary Market
Insurance or Portfolio Insurance, or are backed by an escrow
or trust containing sufficient U.S. Government or U.S.
Government agency securities, any of which ensure the timely
payment of principal and interest.
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other
call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors):
Using the higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of principal and
interest. Securities are normally considered to be
equivalent to AAA rated securities.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that currently in
effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
<PAGE>
Portfolio of Investments
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF)
October 31, 1999
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alabama - 1.3%
$ 2,250,000 BMC Special Care Facilities Financing Authority of the City of 1/02 at 100 AAA $ 2,312,820
Montgomery, Revenue Bonds, Series 1992-A (Baptist Medical Center),
5.750%, 1/01/22
3,000,000 BMC Special Care Facilities Financing Authority of the City of 12/02 at 102 AAA 3,217,080
Montgomery, Revenue Bonds, Series 1992-B (Baptist Medical
Center), 6.700%, 12/01/10
- ------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 1.2%
5,555,000 Sebastian County (Arkansas), Community Junior College District, 4/07 at 101 Aaa 5,383,628
General Obligation Refunding and Improvement Bonds, Series 1997,
5.600%, 4/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
California - 24.9%
ABAG Finance Authority for Nonprofit Corporations, Certificates of
Participation (Children's Hospital Medical Center of Northern
California), Series 1999:
6,750,000 5.875%, 12/01/19 (WI) 12/09 at 101 AAA 6,694,583
14,000,000 6.000%, 12/01/29 (WI) 12/09 at 101 AAA 13,912,220
9,180,000 Antioch Area Public Facilities Financing Agency, Community Facilities 8/09 at 101 AAA 8,951,877
District No. 1989-1, Series 1999 Special Tax Bonds (Contra Costa
County, California), 5.700%, 8/01/22
5,000,000 State Public Works Board of the State of California, Lease Revenue 12/07 at 102 AAA 4,690,350
Refunding Bonds (The Regents of the University of California Projects),
1997 Series A, 5.375%, 12/01/19
1,090,000 Housing Authority of the County of Kern, Guaranteed Tax-Exempt No Opt. Call AAA 1,191,239
Mortgage Obligations, 1994 Series A, Subseries I, 7.150%, 12/30/24
(Alternative Minimum Tax)
580,000 Housing Authority of the County of Kern, Guaranteed Tax-Exempt No Opt. Call AAA 626,910
Mortgage Obligations, 1994 Series A Subseries III, 7.450%, 6/30/25
(Alternative Minimum Tax)
5,935,000 La Verne - Grand Terrace Housing Finance Agency, Single Family No Opt. Call AAA 8,285,319
Residential Mortgage Revenue Bonds, 1984 Series A,
10.250%, 7/01/17
5,840,000 Lancaster Redevelopment Agency, Lancaster Residential Redevelopment 8/01 at 102 AAA 5,914,110
Project Area, Tax Allocation Refunding Bonds, Issue of 1992,
6.100%, 8/01/19
11,080,000 City of Lodi, California, Electric System Revenue Certificates of 1/09 at 40 23/32 AAA 2,419,207
Participation, 1999 Series A, 0.000%, 1/15/24
5,040,000 Northern California Power Agency, Hydroelectric Project Number One No Opt. Call AAA 6,182,669
Revenue Bonds, 1992 Refunding Series A, 10.000%, 7/01/04
5,000,000 Ontario Redevelopment Financing Authority (San Bernardino County, No Opt. Call AAA 6,050,800
California), 1995 Revenue Refunding Bonds (Ontario Redevelopment
Project No.1), 7.400%, 8/01/25
1,340,000 Pomona Public Financing Authority, California, 1992 Revenue Bonds 7/02 at 102 AAA 1,430,611
(Water Treatment Project), Series A, 6.100%, 7/01/17
8,880,000 City of Pomona, California, Single Family Mortgage Revenue Refunding No Opt. Call AAA 10,431,514
Bonds (GNMA and FHLMC Mortgage-Backed Securities),
Series 1990B, 7.500%, 8/01/23
10,305,000 City of San Bernardino, California, Single Family Mortgage Revenue No Opt. Call AAA 11,827,770
Refunding Bonds (GNMA Mortgage-Backed Securities), Series 1990A,
7.500%, 5/01/23
14,755,000 County of San Bernardino, California, Single Family Mortgage Revenue No Opt. Call AAA 18,149,388
Bonds (GNMA Mortgage-Backed Securities), Series 1988A,
8.300%, 9/01/14 (Alternative Minimum Tax)
2,000,000 City of Santa Barbara, California, Certificates of Participation 4/02 at 102 AAA 2,104,300
(1992 Water System Improvement Project and Refunding),
6.700%, 4/01/27
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado - 0.3%
1,225,000 Summit School District RE-1, Summit County, Colorado, General 12/04 at 100 AAA 1,336,708
Obligation Improvement Bonds, Series 1994, 6.700%, 12/01/14
(Pre-refunded to 12/01/04)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Florida - 7.3%
Miami-Dade County, Florida, Subordinate Special Obligation Bonds,
Series 1997B:
$ 10,000,000 0.000%, 10/01/18 4/08 at 58 19/32 AAA $ 3,120,700
13,455,000 0.000%, 10/01/22 4/08 at 46 13/16 AAA 3,253,554
24,385,000 0.000%, 10/01/23 4/08 at 44 1/4 5,529,543
30,000,000 0.000%, 10/01/26 4/08 at 37 5/16 AAA 5,618,400
50,500,000 0.000%, 10/01/30 4/08 at 29 11/16 AAA 7,329,570
6,670,000 Polk County Industrial Development Authority, Industrial Development 9/02 at 103 AAA 6,921,392
Variable Rate Revenue Bonds, 1985 Series 2 (Winter Haven Hospital
Project), 6.250%, 9/01/15
- ------------------------------------------------------------------------------------------------------------------------------------
Georgia - 7.1%
3,000,000 City of Atlanta (Georgia), Water and Wastewater Revenue Bonds, 5/09 at 101 AAA 2,505,180
Series 1999A, 5.000%, 11/01/38
Development Authority of Burke County (Georgia), Pollution
Control Revenue Bonds (Oglethorpe Power Corporation Vogtle
Project), Series 1992:
3,555,000 7.800%, 1/01/08 (Pre-refunded to 1/01/03) 1/03 at 103 AAA 3,988,568
10,000,000 8.000%, 1/01/15 (Pre-refunded to 1/01/03) 1/03 at 103 AAA 11,275,500
14,000,000 The Medical Center Hospital Authority (Georgia), Revenue Anticipation 8/09 at 102 AAA 13,025,880
Certificates (Columbus Regional Healthcare System, Inc. Project),
Series 1999, 5.500%, 8/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 9.4%
10,000,000 City of Chicago (Illinois), General Obligation Adjustable Rate Bonds, 7/02 at 101 1/2 AAA 10,743,300
Central Public Library Project, Series C of 1988, 6.850%, 1/01/17
(Pre-refunded to 7/01/02)
8,200,000 Board of Education of the City of Chicago, General Obligation Lease No Opt. Call AAA 8,623,284
Certificates, 1992 Series A, 6.250%, 1/01/15
3,750,000 City of Chicago (Illinois), Chicago Midway Airport Revenue Bonds, 1/09 at 101 AAA 3,091,238
Series 1998B, 5.000%, 1/01/35
10,150,000 Onterie Center Housing Finance Corporation (An Illinois Not For Profit 7/02 at 102 AAA 10,633,039
Corporation), Mortgage Revenue Refunding Bonds, Series 1992A
(FHA-Insured Mortgage Loan - Onterie Center Project),
7.050%, 7/01/27
3,225,000 Regional Transportation Authority (Cook, DuPage, Kane, Lake, No Opt. Call AAA 4,111,359
McHenry and Will Counties, Illinois), General Obligation Bonds,
Series 1992A, 9.000%, 6/01/09
4,000,000 Public Building Commission of St. Clair County, Illinois, Public 12/02 at 102 AAA 4,184,960
Building Revenue Bonds, Series 1992, 6.350%, 12/01/09
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 3.6%
5,375,000 Indiana Health Facility Financing Authority, Hospital Revenue 5/02 at 102 AAA 5,648,749
Refunding and Improvement Bonds, Series 1992 (Community
Hospitals Projects), 6.400%, 5/01/12
7,000,000 Southwest Allen Multi-School Building Corporation (Ft. Wayne, Indiana), 1/02 at 101 AAA 7,314,300
First Mortgage Refunding Bonds, Series 1992B, 6.375%, 1/15/09
3,000,000 Wheeler-Union Township School Building Corporation (Porter County, 1/07 at 102 AAA 2,907,360
Indiana), First Mortgage Bonds, Series 1997A, 5.625%, 1/15/15
- ------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 1.5%
6,500,000 County of Daviess, Kentucky, Insured Hospital Revenue Bonds, 8/02 at 102 AAA 6,553,625
(ODCH, Inc. Project), Series A, 6.250%, 8/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
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 (Pre-refunded to 2/01/03) 2/03 at 102 AAA 5,357,300
4,000,000 6.450%, 2/01/22 (Pre-refunded to 2/01/03) 2/03 at 102 AAA 4,299,840
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 4.3%
3,000,000 Framingham Housing Authority, GNMA Collateralized Mortgage 8/01 at 102 AAA 3,124,830
Revenue Bonds (Beaver Terrace Apartments), Series 1992A, 6.650%, 2/20/32
8,335,000 Massachusetts Health and Educational Facilities Authority, Revenue 7/02 at 102 AAA 8,699,740
Bonds, New England Medical Center Hospitals Issue, Series F,
6.625%, 7/01/25
<PAGE>
Portfolio of Investments
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF) (continued)
October 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Massachusetts (continued)
$ 8,335,000 Massachusetts Turnpike Authority, Metropolitan Highway System 1/07 at 102 AAA $ 6,947,056
Revenue Bonds, 1997 Series C (Senior), 5.000%, 1/01/37
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan - 0.5%
2,000,000 Paw Paw Public Schools, County of Van Buren, State of Michigan, 5/05 at 100 AAA 2,082,440
1995 School Building and Site Bonds, 5.625%, 5/01/25
(Pre-refunded to 5/01/05)
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 0.4%
1,635,000 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102 AAA 1,641,507
1995 Series D, 5.950%, 2/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 0.4%
1,645,000 Mississippi Home Corporation, Single Family Senior Revenue 9/00 at 103 AAA 1,716,377
Refunding Bonds, Series 1990A, 9.250%, 3/01/12
- ------------------------------------------------------------------------------------------------------------------------------------
Missouri - 2.9%
7,495,000 The Industrial Development Authority of Jefferson County, Missouri, 8/07 at 100 AAA 10,294,158
Housing Revenue Bonds (Richardson Road Apartments Project),
Series 1985, 11.000%, 12/15/15 (Pre-refunded to 8/15/07)
2,250,000 The Industrial Development Authority of University City, Missouri, 12/05 at 102 AAA 2,243,498
Multifamily Housing Revenue Refunding Bonds (GNMA
Collateralized - Canterbury Gardens Project), Series 1995A,
6.000%, 12/20/30
- ------------------------------------------------------------------------------------------------------------------------------------
Montana - 3.2%
13,000,000 City of Forsyth, Rosebud County, Montana, Pollution Control Revenue 3/02 at 102 AAA 13,742,430
Refunding Bonds (Puget Sound Power and Light Company
Colstrip Project), Series 1992, 6.800%, 3/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 0.6%
2,500,000 Nebraska Investment Finance Authority, Multifamily Housing Revenue 10/07 at 101 AAA 2,406,325
Bonds (Cambury Hills Apartments Project), Series 1997,
5.875%, 10/01/29 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada - 1.2%
5,050,000 Washoe County, Nevada, Gas and Water Facilities Refunding Revenue 7/02 at 102 AAA 5,206,954
Bonds (Sierra Pacific Power Company Project), Series 1987,
6.300%, 12/01/14
- ------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 0.2%
1,000,000 New Hampshire Higher Educational and Health Facilities Authority, 10/06 at 102 AAA 988,750
Hospital Revenue Bonds, Concord Hospital Issue, Series 1996,
6.000%, 10/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
New York - 5.1%
7,645,000 Metropolitan Transportation Authority (New York), Transit Facilities No Opt. Call AAA 9,193,189
Revenue Bonds, Series J, 9.100%, 7/01/05
The City of New York, General Obligation Bonds, Fiscal 1992 Series C:
6,935,000 6.625%, 8/01/14 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 AAA 7,429,535
65,000 6.625%, 8/01/14 8/02 at 101 1/2 AAA 69,233
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) 8/02 at 101 1/2 AAA 5,302,985
50,000 6.625%, 8/01/15 8/02 at 101 1/2 AAA 52,795
- ------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 0.7%
3,200,000 Cumberland County Finance Corporation, North Carolina, Installment 6/09 at 101 AAA 3,044,576
Payment Revenue Bonds (Detention Center and Mental Health
Facility Projects), Series 1999, 5.625%, 6/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio - 0.7%
3,400,000 County of Cuyahoga, Ohio, Hospital Revenue Bonds (University 7/09 at 101 AAA 3,170,704
Hospitals Health System, Inc.), Series 1999B, 5.400%, 1/15/19
- ------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 2.2%
6,060,000 Oklahoma Housing Finance Agency, GNMA Collateralized Single No Opt. Call AAA 6,533,286
Family Mortgage Revenue Bonds, Series 1987A, 7.997%, 8/01/18
(Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Oklahoma (continued)
$ 3,000,000 Tulsa Industrial Authority, Multifamily Housing Revenue Refunding 11/05 at 103 Aaa $ 3,057,840
Bonds (GNMA Collateralized - Country Club of Woodland Hills
Development), Series 1995, 6.250%, 11/01/27
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 4.6%
19,140,000 Montgomery County Industrial Development Authority, Pollution 6/02 at 102 AAA 19,890,862
Control Revenue Refunding Bonds, 1992 Series A (Philadelphia
Electric Company Project), 6.625%, 6/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 4.5%
11,750,000 Rhode Island Depositors Economic Corporation, Special Obligation 8/02 at 102 AAA 12,636,890
Bonds, 1992 Series A, 6.625%, 8/01/19 (Pre-refunded to 8/01/02)
8,290,000 Rhode Island Health and Educational Building Corporation, Higher 4/09 at 101 AAA 6,956,139
Education Facility Revenue Bonds, Johnson and Wales University
Issue, Series 1999, 5.000%, 4/01/29
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 2.3%
9,450,000 South Carolina Public Service Authority, Santee Cooper Revenue 7/02 at 102 AAA 10,121,328
Bonds, 1991 Series D, 6.500%, 7/01/24 (Pre-refunded to 7/01/02)
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 3.3%
5,000,000 City of Austin, Texas, Convention Center - Waller Creek Venue Project 11/09 at 100 AAA 4,585,700
Bonds, Series 1999A, 5.500%, 11/15/29
1,290,000 Corpus Christi Housing Finance Corporation, Single Family Mortgage 7/01 at 103 AAA 1,369,941
Senior Revenue Refunding Bonds, Series 1991A, 7.700%, 7/01/11
1,215,000 City of El Paso Property Finance Authority, Inc., Single Family Mortgage 6/02 at 103 Aaa 1,277,305
Revenue Bonds (GNMA Mortgage-Backed Securities Program),
Series 1992A, 8.700%, 12/01/18 (Alternative Minimum Tax)
5,210,000 Harris County, Texas, Toll Road Senior Lien Revenue Refunding Bonds, 8/02 at 102 AAA 5,588,710
Series 1992A, 6.500%, 8/15/17 (Pre-refunded to 8/15/02)
1,600,000 Harris County, Texas, Toll Road Senior Lien Revenue Refunding Bonds, 2/00 at 100 AAA 1,602,784
Series 1992B, 6.625%, 8/15/17
- ------------------------------------------------------------------------------------------------------------------------------------
Washington - 1.2%
4,750,000 Puyallup School District No. 3, Pierce County, Washington, Unlimited 12/02 at 100 AAA 5,061,363
Tax General Obligation and Refunding Bonds, 1992 Series A,
6.700%, 12/01/09 (Pre-refunded to 12/01/02)
- ------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 1.5%
6,000,000 Mason County, West Virginia, Pollution Control Revenue Bonds 6/02 at 102 AAA 6,387,540
(Appalachian Power Company Project), Series I, 6.850%, 6/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
5,000,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, 8/07 at 102 AAA 4,339,400
Series 1997 (Aurora Health Care, Inc.), 5.250%, 8/15/27
- ------------------------------------------------------------------------------------------------------------------------------------
$ 524,815,000 Total Investments - (cost $424,999,311) - 99.6% 433,915,914
=============
Short-Term Investments - 2.4%
$ 10,500,000 Louisiana Offshore Terminal Authority, Variable Rate Demand Bonds, VMIG-1 10,500,000
============= 3.550%, 9/01/06+
Other Assets Less Liabilities - (2.0)% (8,747,421)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $435,668,493
====================================================================================================================
</TABLE>
All of the bonds in the portfolio, excluding temporary
investments in short-term municipal securities, are either
covered by Original Issue Insurance, Secondary Market
Insurance or Portfolio Insurance, or are backed by an escrow
or trust containing sufficient U.S. Government or U.S.
Government agency securities, any of which ensure the timely
payment of principal and interest.
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other
call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors):
Using the higher of Standard & Poor's or Moody's rating.
(WI) Security purchased on a when-issued basis (note 1).
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that currently in
effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
<PAGE>
Portfolio of Investments
Nuveen Insured Premium Income Municipal Fund 2 (NPX)
October 31, 1999
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alabama - 0.8%
$ 2,500,000 City of Mobile, Alabama, General Obligation Refunding Warrants, 2/06 at 102 AAA $ 2,477,600
Series 1996, 5.750%, 2/15/16
1,600,000 City of Northport, Alabama, General Obligation Warrants, 3/06 at 102 AAA 1,542,704
Series 1996-B, 5.700%, 3/01/21
2,000,000 City of Scottsboro, Alabama, General Obligation School Warrants, 7/06 at 102 AAA 2,014,060
Series 1996-B, 5.750%, 7/01/14
- ------------------------------------------------------------------------------------------------------------------------------------
Alaska - 0.8%
3,150,000 Alaska Housing Finance Corporation, Mortgage Revenue Bonds, 6/06 at 102 AAA 3,153,560
1996 Series A, 6.050%, 12/01/17
3,000,000 Municipality of Anchorage, Alaska, 1989 General Obligation Refunding 12/99 at 100 AAA 3,003,930
Water Bonds, 6.250%, 6/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
Arizona - 1.4%
11,000,000 The Industrial Development Authority of the City of Mesa, Arizona, 1/10 at 101 AAA 10,397,970
Revenue Bonds (Discovery Health System), Series 1999A,
5.625%, 1/01/29
- ------------------------------------------------------------------------------------------------------------------------------------
California - 9.1%
6,450,000 California Housing Finance Agency, Multi-Unit Rental Housing Revenue 2/03 at 102 Aa2 6,596,609
Bonds, 1992 Series A, 6.625%, 2/01/24 (Alternative Minimum Tax)
2,500,000 California Housing Finance Agency, Home Mortgage Revenue Bonds, 8/07 at 102 AAA 2,505,150
1996 Series D, 6.150%, 8/01/28 (Alternative Minimum Tax)
13,530,000 California Pollution Control Financing Authority, Pollution Control 9/09 at 100 AAA 12,601,977
Refunding Revenue Bonds (Southern California Edison Company),
1999 Series C, 5.450%, 9/01/29
5,000,000 State of California, Various Purpose General Obligation Bonds, No Opt. Call AAA 6,133,100
11.000%, 8/01/03
Fairfield-Suisun Unified School District (California), Community Facilities
District No. 5 (New School Facilities), Special Tax Bonds, Series 1999:
6,540,000 5.250%, 8/15/24 8/08 at 102 AAA 5,937,993
10,455,000 5.375%, 8/15/29 8/08 at 102 AAA 9,612,954
3,000,000 M-S-R Public Power Agency, California, San Juan Project Revenue 7/03 at 102 AAA 3,020,460
Bonds, Series F, 6.000%, 7/01/20
Modesto Irrigation District, California, Certificates of Participation
(Refunding and Capital Improvements), Series 1999A:
3,320,000 0.000%, 7/01/19 7/09 at 60 15/32 AAA 984,612
3,320,000 0.000%, 7/01/20 7/09 at 57 3/8 AAA 923,790
3,320,000 0.000%, 7/01/21 7/09 at 54 7/16 AAA 866,520
3,500,000 Northern California Power Agency, Hydro-Electric Project Number One 7/03 at 102 AAA 3,404,835
Revenue Bonds, 1993 Refunding Series A, 5.500%, 7/01/16
6,850,000 County of Orange, California, 1996 Recovery Certificates of Participation, 7/06 at 102 AAA 6,860,755
Series A, 6.000%, 7/01/26
San Leandro Housing Finance Corporation, Mortgage Revenue Refunding
Bonds, Series 1993A (FHA-Insured Mortgage Loan - Ashland Village
Apartments, Section 8 Assisted Project):
1,635,000 6.550%, 1/01/12 1/02 at 102 AAA 1,682,742
5,100,000 6.650%, 1/01/25 1/02 at 102 AAA 5,248,563
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado - 4.1%
850,000 Adams County, Colorado, Pollution Control Refunding Revenue Bonds 1/09 at 101 AAA 755,319
(Public Service Company of Colorado Projects), Series 1999,
5.100%, 1/01/19
19,805,000 City and County of Denver, Colorado, Airport System Revenue Bonds, 11/08 at 101 AAA 16,518,954
Series 1998B, 5.000%, 11/15/25 (Alternative Minimum Tax)
14,000,000 Pueblo County, Colorado, Pollution Control Refunding Revenue Bonds 1/09 at 102 AAA 12,440,540
(Public Service Company of Colorado Projects), Series 1999,
5.100%, 1/01/19
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
District of Columbia - 5.7%
$ 5,000,000 District of Columbia (Washington, D.C.), General Obligation Refunding No Opt. Call AAA $ 4,930,600
Bonds, Series 1993B, 5.500%, 6/01/12
5,000,000 District of Columbia, Hospital Improvement and Refunding Revenue 7/02 at 102 AAA 5,020,600
Bonds (Children's Hospital Issue), Series 1992A, 6.250%, 7/15/19
245,000 District of Columbia (Washington D.C.), General Obligation Refunding No Opt. Call AAA 270,451
Bonds, 1994 Series A-1, 6.500%, 6/01/09
4,755,000 District of Columbia (Washington, D.C.), General Obligation No Opt. Call AAA 5,151,472
Refunding Bonds, Series 1994A, 6.500%, 6/01/09
3,765,000 District of Columbia Housing Finance Agency, Collateralized Single 6/03 at 102 AAA 3,810,519
Family Mortgage Revenue Bonds, Series 1990C-4,
6.350%, 12/01/24 (Alternative Minimum Tax)
4,030,000 District of Columbia Housing Finance Agency, Mortgage Revenue 7/03 at 102 AAA 4,003,724
Refunding Bonds, Series 1993A (FHA-Insured Mortgage Loan -
Southview Apartments II, Section 8 Assisted Project), 6.000%, 1/01/25
Washington Convention Center Authority (Washington, D.C.),
Senior Lien Dedicated Tax Revenue Bonds, Series 1998:
4,885,000 5.000%, 10/01/18 10/08 at 101 AAA 4,234,611
16,705,000 5.000%, 10/01/21 10/08 at 101 AAA 14,309,837
- ------------------------------------------------------------------------------------------------------------------------------------
Georgia - 0.5%
645,000 Housing Authority of Fulton County, Georgia, Single Family Mortgage 9/06 at 102 AAA 651,921
Revenue Refunding Bonds (GNMA Mortgage-Backed Securities
Program), Series 1996A, 6.200%, 9/01/27 (Alternative Minimum Tax)
3,000,000 Municipal Electric Authority of Georgia, Power Revenue Bonds, 1/04 at 102 AAA 2,979,720
Series EE, 6.000%, 1/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 16.3%
2,500,000 City of Aurora, Kane, DuPage, Kendall and Will Counties, Illinois, 1/05 at 100 AAA 2,616,025
General Obligation Corporate Purpose Bonds, Series 1996,
5.800%, 1/01/14 (Pre-refunded to 1/01/05)
Village of Bolingbrook, Illinois, General Obligation Bonds,
Series 1997:
2,190,000 0.000%, 1/01/21 1/08 at 47 29/32 AAA 587,774
2,195,000 0.000%, 1/01/22 1/08 at 45 3/16 AAA 553,623
2,195,000 0.000%, 1/01/23 1/08 at 42 1/2 AAA 519,118
2,195,000 0.000%, 1/01/24 1/08 at 40 3/32 AAA 487,795
2,195,000 0.000%, 1/01/25 1/08 at 37 27/32 AAA 457,240
2,195,000 0.000%, 1/01/26 1/08 at 35 11/16 AAA 428,530
Village of Bolingbrook, Illinois, General Obligation Bonds,
Series 1999C Refunding:
2,505,000 0.000%, 1/01/21 No Opt. Call AAA 682,036
2,930,000 0.000%, 1/01/22 No Opt. Call AAA 750,197
1,500,000 City of Chicago, General Obligation Bonds, Project Series 1995, 7/05 at 102 AAA 1,619,310
6.125%, 1/01/16 (Pre-refunded to 7/01/05)
City of Chicago, Chicago Midway Airport Revenue Bonds, 1994 Series A:
1,100,000 6.100%, 1/01/08 (Alternative Minimum Tax) 1/04 at 102 AAA 1,145,419
2,750,000 6.250%, 1/01/14 (Alternative Minimum Tax) 1/04 at 102 AAA 2,842,648
9,000,000 City of Chicago, Chicago O'Hare International Airport, International 1/02 at 102 AAA 9,491,760
Terminal Special Revenue Bonds, Series 1992, 6.750%, 1/01/18
(Alternative Minimum Tax)
8,235,000 City of Chicago (Illinois), Chicago O'Hare International Airport, 1/05 at 102 AAA 8,646,585
General Airport Second Lien Revenue Refunding Bonds,
1994 Series A, 6.375%, 1/01/15
15,000,000 The County of Cook, Illinois, General Obligation Bonds, Series 1992A, 11/02 at 102 AAA 16,195,350
6.600%, 11/15/22 (Pre-refunded to 11/15/02)
2,000,000 Illinois Development Finance Authority, Mortgage Revenue Refunding 7/07 at 102 Aaa 1,966,140
Bonds, Series 1997A (FHA-Insured Mortgage Loans, Section 8 Assisted
Projects), 5.750%, 7/01/18
1,950,000 Illinois Health Facilities Authority, Health Facilities Refunding Revenue No Opt. Call AAA 2,095,119
Bonds (SSM Health Care), Series 1992AA, 6.550%, 6/01/14
Illinois Health Facilities Authority, Revenue Bonds (Lutheran General
HealthSystem), Series 1993A:
4,355,000 6.125%, 4/01/12 No Opt. Call AAA 4,628,102
5,000,000 6.250%, 4/01/18 No Opt. Call AAA 5,239,000
3,765,000 Illinois Housing Development Authority, Housing Development Bonds, 1/04 at 102 A+ 3,770,384
1993 Series A, 6.000%, 7/01/18
<PAGE>
Portfolio of Investments
Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued)
October 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Illinois (continued)
$ 1,770,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1991 1/02 at 102 AAA $ 1,837,101
(Elmhurst Memorial Hospital), 6.625%, 1/01/22
4,000,000 The Illinois State Toll Highway Authority, Toll Highway Priority 1/03 at 102 AAA 4,266,280
Revenue Bonds, 1992 Series A, 6.200%, 1/01/16
(Pre-refunded to 1/01/03)
13,825,000 School District Number 46, Kane, Cook and DuPage Counties, Illinois No Opt. Call Aaa 16,488,386
(Elgin School District Number U-46), School Bonds, Series 1997,
7.800%, 1/01/12
2,600,000 Community Unit School District Number 115, Kendall and Kane No Opt. Call AAA 2,869,594
Counties, Illinois (Yorkville), School Bonds, Series 1996,
7.000%, 1/01/07
4,035,000 Community Consolidated School District Number 41 (Lake Villa), No Opt. Call AAA 5,258,775
Lake County, Illinois, General Obligation School Bonds, Series 1997,
8.750%, 11/01/14
4,035,000 Community High School District No. 157, McHenry and Lake Counties, No Opt. Call AAA 5,375,911
Illinois (Richmond-Burton), General Obligation School Bonds,
Series 1998, 9.000%, 12/01/17
Metropolitan Pier and Exposition Authority (Illinois), McCormick
Place Expansion Project Bonds, Series 1992A:
6,335,000 6.500%, 6/15/22 (Pre-refunded to 6/15/03) 6/03 at 102 AAA 6,854,343
165,000 6.500%, 6/15/22 6/03 at 102 AAA 170,504
2,900,000 City of Peoria, City of Moline and City of Freeport, Illinois, 10/05 at 105 AAA 3,168,018
Collateralized Single Family Mortgage Revenue Bonds, Series 1995A,
7.600%, 4/01/27 (Alternative Minimum Tax)
The County of St. Clair, Illinois, General Obligation Bonds (Alternate
Revenue Source), Series 1999:
7,455,000 0.000%, 10/01/22 10/09 at 48 7/16 AAA 1,705,331
7,595,000 0.000%, 10/01/23 10/09 at 45 3/4 AAA 1,625,330
7,745,000 0.000%, 10/01/24 at 43 3/16 AAA 1,553,957
8,080,000 0.000%, 10/01/26 10/09 at 38 15/32 AAA 1,417,717
8,455,000 0.000%, 10/01/28 10/09 at 34 9/32 AAA 1,300,294
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 1.8%
1,000,000 Fort Wayne South Side School Building Corporation, Allen County, 1/04 at 102 AAA 1,071,230
Indiana, First Mortgage Bonds, Series 1994, 6.125%, 1/15/12
(Pre-refunded to 1/15/04)
2,220,000 Indiana Municipal Power Agency, Power Supply System Revenue Bonds, 1/03 at 102 AAA 2,346,984
1993 Series A, 6.125%, 1/01/19
9,770,000 Northwest Allen Building Corporation, Allen County, Indiana, 6/05 at 102 AAA 9,408,315
First Mortgage Bonds, Series 1995, 5.500%, 6/01/15
- ------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.4%
1,180,000 City of Olathe, Kansas and Labette County, Kansas, Collateralized 2/05 at 105 Aaa 1,284,855
Single Family Mortgage Refunding Revenue Bonds, Series A-I,
8.100%, 8/01/23 (Alternative Minimum Tax)
1,725,000 Sedwick County, Kansas and Shawnee County, Kansas, Collateralized 11/04 at 105 Aaa 1,876,127
Single Family Mortgage Refunding Revenue Bonds, Series A-II,
8.050%, 5/01/24 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 1.5%
12,000,000 County of Jefferson, Kentucky, Health System Revenue Bonds, 10/08 at 101 AAA 10,592,280
Series 1998 (Alliant Health System, Inc.), 5.125%, 10/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
Maryland - 0.1%
1,000,000 Maryland Transportation Authority, Special Obligation Revenue 7/04 at 102 AAA 1,005,650
Bonds, Baltimore/Washington International Airport Projects,
Series 1994-A (Qualified Airport Bonds), 6.400%, 7/01/19
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 3.4%
5,000,000 Massachusetts Housing Finance Agency, Housing Project Revenue 4/03 at 102 AAA 5,115,100
Bonds, 6.150%, 10/01/15
7,635,000 Massachusetts Housing Finance Agency, Single Family Housing 6/06 at 102 AAA 7,755,557
Revenue Bonds, Series 48, 6.350%, 6/01/26 (Alternative Minimum Tax)
5,000,000 Massachusetts Housing Finance Agency, Single Family Housing Revenue 6/07 at 102 AAA 5,042,900
Bonds, Series 53, 6.150%, 12/01/29 (Alternative Minimum Tax)
8,750,000 Massachusetts Turnpike Authority, Metropolitan Highway System 1/07 at 102 AAA 7,292,950
Revenue Bonds, 1997 Series C (Senior), 5.000%, 1/01/37
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Michigan - 2.8%
$ 10,000,000 Michigan State Housing Development Authority, Rental Housing 4/07 at 102 AAA $10,063,700
Revenue Bonds, 1997 Series A, 6.000%, 4/01/16
(Alternative Minimum Tax)
10,000,000 County of Monroe, Michigan, Pollution Control Revenue Bonds 9/03 at 102 AAA 10,393,600
(The Detroit Edison Company Project), Series CC-1992,
6.550%, 9/01/24 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 0.8%
4,100,000 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102 AAA 4,116,318
1995 Series D, 5.950%, 2/01/18
1,670,000 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 1/06 at 102 AA 1,650,127
1996 Series H, 6.000%, 1/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
Missouri - 3.1%
1,000,000 The Industrial Development Authority of the City of Hazelwood, 9/06 at 102 AAA 1,008,830
Missouri, Multifamily Housing Revenue Refunding Bonds
(GNMA Collateralized - The Lakes Apartments Project), Series 1996,
6.000%, 9/20/16
8,000,000 City of Kansas City, Missouri, General Improvement Airport Refunding 9/05 at 101 AAA 8,790,480
Revenue Bonds, Series 1995, 6.750%, 9/01/09
4,500,000 Land Clearance for Redevelopment Authority, of Kansas City, 12/05 at 102 AAA 4,482,900
Missouri, Lease Revenue Bonds, (Municipal Auditorium and
Muehlebach Hotel Redevelopment Project) Series 1995A,
5.900%, 12/01/18
1,000,000 Kansas City Municipal Assistance Corporation, Leasehold Revenue 1/06 at 101 AAA 1,004,770
Capital Improvement Bonds (Kansas City, Missouri, Lessee),
Series 1996B, 5.750%, 1/15/14
1,030,000 Missouri Housing Development Commission, Multifamily Housing 12/06 at 102 AAA 1,035,665
Revenue Bonds (Brookstone Village Apartments Project),
1996 Series A, 6.000%, 12/01/16 (Alternative Minimum Tax)
3,415,000 Health and Educational Facilities Authority of the State of Missouri, 2/02 at 102 AAA 3,440,749
Health Facilities Revenue Bonds (Health Midwest), Series 1992B,
6.250%, 2/15/22
2,700,000 The Industrial Development Authority of the County of St. Louis, 4/07 at 102 AAA 2,705,724
Missouri, Multifamily Housing Revenue Refunding Bonds
(GNMA Collateralized - South Summit Apartments Project),
Series 1997A, 6.050%, 4/20/27
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada - 2.0%
5,000,000 Clark County, Nevada, Industrial Development Revenue Bonds 6/02 at 102 AAA 5,281,950
(Nevada Power Company Project), Series 1992A, 6.700%, 6/01/22
(Alternative Minimum Tax)
8,320,000 Clark County School District, Nevada, General Obligation School No Opt. Call AAA 9,170,054
Improvement Bonds (Limited Tax), Series May 1, 1995A, 7.250%, 6/15/04
- ------------------------------------------------------------------------------------------------------------------------------------
New York - 15.6%
Long Island Power Authority (New York), Electric System General
Revenue Bonds, Series 1998A:
24,000,000 5.000%, 12/01/18 6/08 at 101 AAA 20,983,920
20,000,000 5.250%, 12/01/26 6/08 at 101 AAA 17,868,200
17,740,000 Long Island Power Authority (New York), Electric System General 4/08 at 101 AAA 14,997,928
Revenue Bonds, Series 1998B, 4.750%, 4/01/18
4,090,000 Metropolitan Transportation Authority (New York), Commuter Facilities No Opt. Call AAA 4,824,932
Revenue Bonds, Series 1994A, 8.000%, 7/01/07
5,000,000 Metropolitan Transportation Authority (New York), Transit Facilities No Opt. Call AAA 5,374,200
Revenue Bonds, Series K, 6.300%, 7/01/06
4,985,000 Metropolitan Transportation Authority (New York), Transit Facilities No Opt. Call AAA 5,880,755
Revenue Bonds, Series O, 8.000%, 7/01/07
7,500,000 Nassau Health Care Corporation, Health System Revenue Bonds, 8/09 at 102 AAA 7,205,400
Series 1999 (Nassau County, New York, Guaranteed),
5.750%, 8/01/29
4,000,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series E, No Opt. Call AAA 4,616,000
8.000%, 8/01/05
5,000,000 The City of New York, General Obligation Bonds, Fiscal 1997 Series E, 8/06 at 101 1/2 AAA 5,297,050
6.000%, 8/01/08
The City of New York, General Obligation Bonds, Fiscal 1993 Series A:
790,000 5.750%, 8/01/10 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 AAA 828,576
1,710,000 5.750%, 8/01/10 8/02 at 101 1/2 AAA 1,754,802
7,000,000 New York City Municipal Water Finance Authority, Water and Sewer 6/09 at 101 AAA 6,741,210
System Revenue Bonds, Fiscal 2000 Series A, 5.750%, 6/15/31
<PAGE>
Portfolio of Investments
Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued)
October 31, 1999
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York (continued)
$ 5,070,000 Dormitory Authority of the State of New York, Maimonides Medical 2/06 at 102 AAA $ 5,027,209
Center, FHA-Insured Mortgage Hospital Revenue Bonds, Series 1996A,
5.750%, 8/01/14
New York State Medical Care Facilities Finance Agency, Mental
Health Services Facilities Improvement Revenue Bonds, 1995
Series C:
6,095,000 6.000%, 8/15/15 (Pre-refunded to 2/15/05) 2/05 at 102 AAA 6,517,323
55,000 6.000%, 8/15/15 2/05 at 102 AAA 55,821
New York State Medical Care Facilities Finance Agency, New York
Hospital FHA-Insured Mortgage Revenue Bonds, 1994 Series A:
3,000,000 6.750%, 8/15/14 (Pre-refunded to 2/15/05) 2/05 at 102 AAA 3,317,790
2,500,000 6.800%, 8/15/24 (Pre-refunded to 2/15/05) 2/05 at 102 AAA 2,770,100
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio - 1.8%
City of Cleveland, Ohio, Waterworks Improvement First Mortgage
Revenue Bonds, Series F of 1992A:
1,915,000 6.250%, 1/01/15 (Pre-refunded to 1/01/02) 1/02 at 102 AAA 2,024,595
85,000 6.250%, 1/01/15 1/02 at 102 AAA 88,924
5,000,000 Fairfield City School District, County of Butler, Ohio, School 12/05 at 100 AAA 5,033,850
Improvement Bonds, Series 1995, 6.000%, 12/01/20
5,500,000 Ohio Air Quality Development Authority, State of Ohio, Collateralized 6/02 at 103 AAA 6,042,960
Pollution Control Revenue Refunding Bonds, Series 1992 (The
Cleveland Electric Illuminating Company Project), 8.000%, 12/01/13
- ------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 2.0%
8,425,000 McGee Creek Authority (Oklahoma), Water Revenue Bonds, Series 1992, No Opt. Call AAA 8,526,690
6.000%, 1/01/23
6,000,000 Norman Regional Hospital Authority (Norman, Oklahoma), Hospital 9/01 at 102 AAA 6,394,440
Revenue Bonds, Series 1991, 6.900%, 9/01/21 (Pre-refunded to 9/01/01)
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 4.6%
3,715,000 Allegheny County Residential Finance Authority, Single Family 11/06 at 102 Aaa 3,786,031
Mortgage Revenue Bonds, 1996 Series AA, 6.450%, 5/01/28
(Alternative Minimum Tax)
9,485,000 The Berks County Municipal Authority (Pennsylvania), Hospital Revenue 11/09 at 102 AAA 9,446,681
Bonds (The Reading Hospital and Medical Center Project),
Series of 1999, 6.000%, 11/01/19 (WI)
6,000,000 Cambria County Industrial Development Authority (Pennsylvania), 11/05 at 102 AAA 5,840,280
Pollution Control Revenue Refunding Bonds, 1995 Series A
(Pennsylvania Electric Company Project), 5.800%, 11/01/20
4,750,000 Lehigh County Industrial Development Authority, Pollution Control 11/02 at 102 AAA 4,873,310
Revenue Refunding Bonds, 1992 Series A (Pennsylvania Power and
Light Company Project), 6.400%, 11/01/21
1,000,000 Luzerne County Industrial Development Authority, Exempt Facilities 12/04 at 102 AAA 1,088,120
Revenue Refunding Bonds, 1994 Series A (Pennsylvania Gas and
Water Company Project), 7.000%, 12/01/17 (Alternative Minimum Tax)
2,680,000 The School District of Philadelphia, Pennsylvania, General Obligation No Opt. Call AAA 2,882,072
Refunding Bonds, Series A of 1995, 6.250%, 9/01/08
University of Pittsburgh of the Commonwealth System of Higher
Education, University Capital Project Bonds (Pennsylvania),
1992 Series A:
1,395,000 6.125%, 6/01/21 (Pre-refunded to 6/01/02) 6/02 at 102 AAA 1,478,672
4,105,000 6.125%, 6/01/21 6/02 at 102 AAA 4,131,559
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 1.0%
6,500,000 Piedmont Municipal Power Agency (South Carolina), Electric Revenue 1/03 at 102 AAA 6,957,665
Bonds, 1992 Refunding Series, 6.300%, 1/01/22
(Pre-refunded to 1/01/03)
- ------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.2%
1,500,000 Knoxville's Community Development Corporation, Multifamily Mortgage 7/03 at 101 AAA 1,521,435
Revenue Bonds (GNMA Mortgage-Backed Security Program -
Morningside Gardens Project), Series 1993, 6.200%, 7/20/28
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 3.0%
State of Texas, Veterans Housing Assistance Bonds, Series 1993,
General Obligation Bonds:
1,315,000 6.800%, 12/01/23 (Alternative Minimum Tax) 12/03 at 102 Aa1 1,370,625
6,585,000 6.800%, 12/01/23 (Alternative Minimum Tax) 12/03 at 102 AAA 6,880,601
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Texas (continued)
$ 9,950,000 Tyler Health Facilities Development Corporation (Texas), Hospital 11/07 at 102 AAA $ 9,272,107
Revenue Bonds (East Texas Medical Center Regional Healthcare
System Project), Series 1997A, 5.600%, 11/01/27
5,175,000 Tyler Health Facilities Development Corporation (Texas), Hospital 2/09 at 102 AAA 4,636,697
Revenue Bonds (East Texas Medical Center Regional Healthcare
System Project), Series 1997D (Remarketed), 5.375%, 11/01/27
- ------------------------------------------------------------------------------------------------------------------------------------
Utah - 0.5%
3,600,000 State Board of Regents of the State of Utah, Student Loan Revenue 11/03 at 102 Aaa 3,584,736
Bonds, Series 1993B, 5.900%, 11/01/13 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.3%
2,250,000 Virginia Housing Development Authority, Multifamily Housing 1/08 at 102 AAA 2,282,198
Revenue Bonds, Series B, 6.050%, 5/01/17 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Washington - 9.1%
5,230,000 Public Utility District No. 1 of Douglas County, Washington, 9/09 at 102 AAA 5,191,926
Wells Hydro-Electric Revenue Bonds, Series 1999A, 6.125%, 9/01/29
(Alternative Minimum Tax) (WI)
2,500,000 City of Tacoma, Washington, Sewer Revenue Bonds, 1995 Series B, 12/05 at 100 AAA 2,622,275
6.375%, 12/01/15
25,040,000 State of Washington, Certificates of Participation (Washington 7/09 at 100 AAA 23,489,774
State Convention and Trade Center, 1999), 5.250%, 7/01/14
8,100,000 Washington Health Care Facilities Authority, Revenue Bonds, 2/03 at 102 AAA 8,155,080
Series 1992 (Virginia Mason Obligated Group, Seattle),
6.300%, 2/15/17
6,130,000 Washington Health Care Facilities Authority, Revenue Bonds, 11/02 at 102 AAA 6,559,345
Series 1992 (Swedish Hospital Medical Center, Seattle),
6.300%, 11/15/22 (Pre-refunded to 11/15/02)
3,750,000 Washington Public Power Supply System, Nuclear Project No. 1 7/03 at 102 AAA 3,637,500
Refunding Revenue Bonds, Series 1993B, 5.600%, 7/01/15
10,500,000 Washington Public Power Supply System, Nuclear Project No. 1 7/06 at 102 AAA 10,689,105
Refunding Revenue Bonds, Series 1996A (Bonneville Power
Administration), 5.750%, 7/01/11
6,295,000 Washington Public Power Supply System, Nuclear Project No. 3 7/03 at 102 AAA 6,038,915
Refunding Revenue Bonds, Series 1993B, 5.600%, 7/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 2.8%
20,000,000 The County Commission of Pleasants County, West Virginia, 5/05 at 102 AAA 20,449,000
Pollution Control Revenue Bonds (Monongahela Power Company,
Pleasants Station Project), 1995 Series C, 6.150%, 5/01/15
- ------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 1.0%
2,000,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, 8/02 at 102 AAA 2,143,740
Series 1992 (Children's Hospital of Wisconsin, Inc. Project),
6.500%, 8/15/10 (Pre-refunded to 8/15/02)
5,000,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, 8/05 at 102 AAA 5,108,050
Series 1995 (Mercy Health System Corporation), 6.125%, 8/15/13
- ------------------------------------------------------------------------------------------------------------------------------------
$ 761,230,000 Total Investments - (cost $718,855,319) - 96.5% 704,888,837
=============
Short-Term Investments - 2.6%
$ 19,300,000 California Pollution Control Financing Authority, Pollution VMIG-1 19,300,000
============= Control Refunding Revenue Bonds (Pacific Gas and Electric Company),
1996 Series C, Variable Rate Demand Bonds, 3.500%, 11/01/26+
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.9% 6,666,061
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $730,854,898
====================================================================================================================
</TABLE>
All of the bonds in the portfolio, excluding temporary
investments in short-term municipal securities, are either
covered by Original Issue Insurance, Secondary Market
Insurance or Portfolio Insurance, or are backed by an escrow
or trust containing sufficient U.S. Government or U.S.
Government agency securities, any of which ensure the timely
payment of principal and interest.
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other
call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent auditors):
Using the higher of Standard & Poor's or Moody's rating.
(WI) Security purchased on a when-issued basis (note 1).
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that currently in
effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
<PAGE>
Statement of Net Assets
October 31, 1999
<TABLE>
<CAPTION>
Insured Insured Premier Insured
Quality Opportunity Insured Income Premium Income 2
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investments in municipal securities, at market value
(note 1) $801,017,267 $1,781,212,211 $433,915,914 $704,888,837
Temporary investments in short-term municipal
securities, at amortized cost, which approximates
market value (note 1) 21,975,000 17,205,000 10,500,000 19,300,000
Cash 4,083,317 24,017,845 5,383,120 1,463,411
Receivables:
Interest 15,519,072 35,330,487 7,334,177 12,826,299
Investments sold 7,206,333 6,141,762 1,117,484 9,975,957
Other assets 52,120 104,053 32,551 36,679
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 849,853,109 1,864,011,358 458,283,246 748,491,183
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
Payable for investments purchased -- 20,133,722 20,590,016 14,491,941
Accrued expenses:
Management fees (note 6) 450,937 958,727 236,347 391,440
Other 572,042 851,095 274,486 600,783
Preferred share dividends payable 146,045 269,749 68,342 117,977
Common share dividends payable 2,894,998 6,282,236 1,445,562 2,034,144
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 4,064,022 28,495,529 22,614,753 17,636,285
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets (note 7) $845,789,087 $1,835,515,829 $435,668,493 $730,854,898
====================================================================================================================================
Preferred shares, at liquidation value $318,000,000 $ 680,000,000 $161,000,000 $268,900,000
====================================================================================================================================
Preferred shares outstanding 12,720 27,200 6,440 10,756
====================================================================================================================================
Common shares outstanding 37,843,165 81,060,946 19,274,161 37,253,960
====================================================================================================================================
Net asset value per Common share outstanding
(net assets less Preferred shares at liquidation
value, divided by Common shares outstanding) $ 13.95 $ 14.25 $ 14.25 $ 12.40
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Statement of Operations
Year Ended October 31, 1999
<TABLE>
<CAPTION>
Insured Insured Premier Insured
Quality Opportunity Insured Income Premium Income 2
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income (note 1) $ 51,079,557 $110,139,170 $ 25,930,523 $ 42,067,767
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 6) 5,408,464 11,564,218 2,838,411 4,855,281
Preferred shares - auction fees 649,999 1,500,000 349,999 672,250
Preferred shares - dividend disbursing agent fees 42,521 62,520 22,519 50,001
Shareholders' servicing agent fees and expenses 116,980 183,840 45,855 67,749
Custodian's fees and expenses 133,651 236,851 80,621 121,281
Directors'/Trustees' fees and expenses (note 6) 8,147 17,896 4,260 7,453
Professional fees 21,273 24,185 20,053 21,776
Shareholders' reports - printing and mailing expenses 195,997 406,211 100,217 177,357
Stock exchange listing fees 32,748 68,007 24,262 32,547
Portfolio insurance expense 121,111 209,656 -- 27,145
Investor relations expense 73,646 152,146 36,416 62,553
Other expenses 42,742 77,229 20,909 34,061
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 6,847,279 14,502,759 3,543,522 6,129,454
Custodian fee credit (note 1) (24,336) (29,459) (9,246) (16,204)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 6,822,943 14,473,300 3,534,276 6,113,250
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 44,256,614 95,665,870 22,396,247 35,954,517
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain (loss) from investment transactions
(notes 1 and 4) (1,848,032) (1,440,071) (2,424,689) 180,105
Change in net unrealized appreciation (depreciation)
of investments (70,918,815) (138,439,350) (34,028,479) (64,082,302)
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (72,766,847) (139,879,421) (36,453,168) (63,902,197)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $(28,510,233) $ (44,213,551) $(14,056,921) $(27,947,680)
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Insured Quality Insured Opportunity
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/99 10/31/98 10/31/99 10/31/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 44,256,614 $ 44,617,562 $ 95,665,870 $ 97,070,050
Net realized gain (loss) from investment transactions
(notes 1 and 4) (1,848,032) 6,071,593 (1,440,071) 4,892,106
Change in net unrealized appreciation (depreciation)
of investments (70,918,815) 7,097,066 (138,439,350) 17,252,534
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations (28,510,233) 57,786,221 (44,213,551) 119,214,690
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (34,678,458) (35,204,129) (75,984,403) (77,561,303)
Preferred shareholders (8,346,002) (9,554,564) (19,526,388) (20,642,256)
From accumulated net realized gains from
investment transactions:
Common shareholders (4,753,628) (453,849) (3,268,339) --
Preferred shareholders (1,322,344) (19,266) (864,520) --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (49,100,432) (45,231,808) (99,643,650) (98,203,559)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (note 2)
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions 2,928,525 2,263,160 7,709,813 9,806,987
Preferred shares - net proceeds from sale of shares 57,291,876 -- 79,074,482 --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital share transactions 60,220,401 2,263,160 86,784,295 9,806,987
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (17,390,264) 14,817,573 (57,072,906) 30,818,118
Net assets at the beginning of year 863,179,351 848,361,778 1,892,588,735 1,861,770,617
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $845,789,087 $863,179,351 $1,835,515,829 $1,892,588,735
====================================================================================================================================
Balance of undistributed net investment income
at the end of year $ 1,839,774 $ 607,620 $ 1,155,567 $ 1,000,488
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Premier Insured Income Insured Premium Income 2
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/99 10/31/98 10/31/99 10/31/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 22,396,247 $ 22,329,463 $ 35,954,517 $ 35,542,409
Net realized gain (loss) from investment transactions
(notes 1 and 4) (2,424,689) 980,248 180,105 5,306,267
Change in net unrealized appreciation (depreciation)
of investments (34,028,479) 6,160,462 (64,082,302) 14,400,072
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations (14,056,921) 29,470,173 (27,947,680) 55,248,748
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (17,326,755) (17,721,831) (27,045,477) (27,350,824)
Preferred shareholders (4,511,430) (4,817,384) (8,442,753) (9,249,566)
From accumulated net realized gains from
investment transactions:
Common shareholders (772,120) (400,607) -- --
Preferred shareholders (208,292) (110,068) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (22,818,597) (23,049,890) (35,488,230) (36,600,390)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (note 2)
Net proceeds from Common shares issued to shareholders due to
reinvestment of distributions 1,402,822 872,626 429,230 --
Preferred shares - net proceeds from sale of shares 20,675,162 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital share transactions 22,077,984 872,626 429,230 --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (14,797,534) 7,292,909 (63,006,680) 18,648,358
Net assets at the beginning of year 450,466,027 443,173,118 793,861,578 775,213,220
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $435,668,493 $450,466,027 $730,854,898 $793,861,578
====================================================================================================================================
Balance of undistributed net investment income at the end of year$ 853,618 $ 295,556 $ 1,181,455 $ 715,168
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Notes to Financial Statements
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The National Funds (the "Funds") covered in this report and their corresponding
New York Stock Exchange symbols are Nuveen Insured Quality Municipal Fund, Inc.
(NQI), Nuveen Insured Municipal Opportunity Fund, Inc. (NIO), Nuveen Premier
Insured Municipal Income Fund, Inc. (NIF) and Nuveen Insured Premium Income
Municipal Fund 2 (NPX).
Each Fund invests primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities. The Funds are registered under
the Investment Company Act of 1940 as closed-end, diversified management
investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At
October 31, 1999, Premier Insured Income and Insured Premium Income 2 had
outstanding when-issued purchase commitments of $20,590,016 and $14,491,941,
respectively. There were no such outstanding purchase commitments in either
Insured Quality or Insured Opportunity.
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
when required for federal income tax purposes.
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute 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. All monthly
tax-exempt income dividends paid during the fiscal year ended October 31, 1999,
have been designated Exempt-Interest Dividends. Net realized capital gain and
market discount distributions are subject to federal taxation.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of distributions are determined in accordance with federal
income tax regulations, which may differ from generally accepted accounting
principles. Accordingly, temporary over-distributions as a result of these
differences may occur and will be classified as either distributions in excess
of net investment income, distributions in excess of net realized gains and/or
distributions in excess of net ordinary taxable income from investment
transactions, where applicable.
<PAGE>
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in more than one Series. The dividend
rate on each Series may change every seven days, as set by the auction agent.
The number of Preferred shares outstanding, by Series and in total, at October
31, 1999, is as follows:
Premier Insured
Insured Insured Insured Premium
Quality Opportunity Income Income 2
- --------------------------------------------------------------------------------
Number of shares:
Series M 2,600 4,000 -- 2,080
Series T 2,600 4,000 -- 2,200
Series W 2,600 4,000 840 2,080
Series W2 -- 3,200 -- --
Series Th 2,320 4,000 2,800 2,200
Series Th2 -- 4,000 -- --
Series F 2,600 4,000 2,800 2,196
- --------------------------------------------------------------------------------
Total 12,720 27,200 6,440 10,756
================================================================================
Effective May 7, 1999, Insured Quality issued 2,320 Series Th $25,000 stated
value Preferred shares.
Effective April 30, 1999, Insured Opportunity issued 3,200 Series W2 $25,000
stated value Preferred shares.
Effective June 18, 1999, Premier Insured Income issued 840 Series W $25,000
stated value Preferred shares.
Insurance
The Funds invest in municipal securities which are either covered by insurance
or are backed by an escrow or trust account containing sufficient U.S.
government or U.S. government agency securities, both of which ensure the timely
payment of principal and interest. Each insured municipal security is covered by
Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance.
Such insurance does not guarantee the market value of the municipal securities
or the value of the Funds' shares. Original Issue Insurance and Secondary Market
Insurance remain in effect as long as the municipal securities covered thereby
remain outstanding and the insurer remains in business, regardless of whether
the Funds ultimately dispose of such municipal securities. Consequently, the
market value of the municipal securities covered by Original Issue Insurance or
Secondary Market Insurance may reflect value attributable to the insurance.
Portfolio Insurance is effective only while the municipal securities are held by
the Funds. Accordingly, neither the prices used in determining the market value
of the underlying municipal securities nor the net asset value of the Funds'
shares include value, if any, attributable to the Portfolio Insurance. Each
policy of the Portfolio Insurance does, however, give the Funds the right to
obtain permanent insurance with respect to the municipal security covered by the
Portfolio Insurance policy at the time of its sale.
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the fiscal year ended October 31, 1999.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby the custodian fees
and expenses are reduced by credits earned on each Fund's cash on deposit with
the bank. Such deposit arrangements are an alternative to overnight investments.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets from operations during the reporting period. Actual results may differ
from those estimates.
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
<TABLE>
<CAPTION>
Insured Quality Insured Opportunity
- ----------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/99 10/31/98 10/31/99 10/31/98
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common shares issued to shareholders
due to reinvestment of distributions 185,736 140,631 473,067 606,605
==========================================================================================================
Preferred shares sold 2,320 -- 3,200 --
==========================================================================================================
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
<TABLE>
<CAPTION>
Premier Insured Income Insured Premium Income 2
- ----------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/99 10/31/98 10/31/99 10/31/98
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common shares issued to shareholders
due to reinvestment of distributions 85,914 54,102 14,923 --
==========================================================================================================
Preferred shares sold 840 -- -- --
==========================================================================================================
</TABLE>
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 1, 1999, to shareholders of record
on November 15, 1999, as follows:
<TABLE>
<CAPTION>
Premier Insured
Insured Insured Insured Premium
Quality Opportunity Income Income 2
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Dividend per share $.0765 $.0775 $.0750 $.0605
==========================================================================================================
</TABLE>
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities for the fiscal year ended October
31, 1999, were as follows:
<TABLE>
<CAPTION>
Premier Insured
Insured Insured Insured Premium
Quality Opportunity Income Income 2
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases:
Long-term municipal securities $256,042,190 $532,596,422 $167,353,407 $269,725,824
Short-term municipal securities 231,575,000 279,155,000 84,500,000 116,000,000
Sales and maturities:
Long-term municipal securities 231,234,325 491,346,871 139,564,822 283,375,627
Short-term municipal securities 211,700,000 272,850,000 75,900,000 96,700,000
=====================================================================================================
</TABLE>
At October 31, 1999, the identified cost of investments owned for federal income
tax purposes were as follows:
<TABLE>
<CAPTION>
Premier Insured
Insured Insured Insured Premium
Quality Opportunity Income Income 2
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$822,798,027 $1,772,473,106 $435,499,311 $738,251,279
=======================================================================================================
</TABLE>
At October 31, 1999, the Funds had unused capital loss carryforwards available
for federal income tax purpose to be applied against future capital gains, if
any. If not applied, the carryforwards will expire as follows:
<TABLE>
<CAPTION>
Premier Insured
Insured Insured Insured Premium
Quality Opportunity Income Income 2
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Expiration year:
2002 $ -- $ -- $ -- $ 1,737,245
2003 -- -- -- 12,029,555
2004 -- -- -- 2,080,786
2005 -- -- -- --
2006 -- -- -- --
2007 1,848,032 29,713 2,424,689 --
- ---------------------------------------------------------------------------------------------------------
Total $1,848,032 $29,713 $2,424,689 $15,847,586
=========================================================================================================
</TABLE>
<PAGE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at October 31, 1999, were as follows:
<TABLE>
<CAPTION>
Premier Insured
Insured Insured Insured Premium
Quality Opportunity Income Income 2
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized:
appreciation $24,895,824 $70,338,537 $17,947,810 $ 12,041,165
depreciation (24,701,584) (44,394,432) (9,031,207) (26,103,607)
- ------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) $ 194,240 $25,944,105 $ 8,916,603 $(14,062,442)
============================================================================================================
</TABLE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net assets of each Fund:
Average Daily Net Assets Management Fee
- -----------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5875 of 1
=================================================================
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its 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 October 31, 1999, net assets consisted of:
<TABLE>
<CAPTION>
Premier Insured
Insured Insured Insured Premium
Quality Opportunity Income Income 2
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $318,000,000 $ 680,000,000 $161,000,000 $268,900,000
Common shares, $.01 par value per share 378,432 810,609 192,742 372,540
Paid-in surplus 527,224,673 1,127,635,261 267,130,219 490,310,931
Balance of undistributed net investment income 1,839,774 1,155,567 853,618 1,181,455
Accumulated net realized gain (loss) from
investment transactions (1,875,103) (1,440,071) (2,424,689) (15,943,546)
Net unrealized appreciation (depreciation)
of investments 221,311 27,354,463 8,916,603 (13,966,482)
- --------------------------------------------------------------------------------------------------------------
Net assets $845,789,087 $1,835,515,829 $435,668,493 $730,854,898
==============================================================================================================
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>
NOTES TO FINANCIAL STATEMENTS (continued)
8. INVESTMENT COMPOSITION
At October 31, 1999, the revenue sources by municipal purpose, expressed as a
percent of long-term investments, were as follows:
Premier Insured
Insured Insured Insured Premium
Quality Opportunity Income Income 2
- --------------------------------------------------------------------------------
Education and Civic Organizations 4% 1% 3% 1%
Health Care 13 16 17 11
Housing/Multifamily 6 3 5 7
Housing/Single Family 7 12 3 5
Tax Obligation/General 4 2 1 14
Tax Obligation/Limited 9 3 19 13
Transportation 17 10 5 10
U.S. Guaranteed 22 30 33 12
Utilities 17 14 12 25
Water and Sewer 1 9 2 2
- --------------------------------------------------------------------------------
100% 100% 100% 100%
================================================================================
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 the Funds' shares.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
<PAGE>
Financial Highlights
Selected data for a Common share outstanding throughout each
year:
<TABLE>
<CAPTION>
Investment Operations
---------------------
Net
Realized/
Beginning Net Unrealized
Net Asset Investment Investment
Value Income Gain (Loss) Total
- ----------------------------------------------------------
<S> <C> <C> <C> <C>
Insured Quality
Year Ended 10/31:
1999 $16.02 $1.17 $(1.91) $(.74)
1998 15.68 1.18 .36 1.54
1997 15.50 1.22 .28 1.50
1996 15.79 1.24 (.12) 1.12
1995 14.50 1.27 1.32 2.59
<CAPTION>
Insured Opportunity
<S> <C> <C> <C> <C>
Year Ended 10/31:
1999 16.04 1.18 (1.73) (.55)
1998 15.78 1.21 .28 1.49
1997 15.54 1.23 .28 1.51
1996 15.60 1.24 .02 1.26
1995 14.04 1.25 1.60 2.85
<CAPTION>
Premier Insured Income
<S> <C> <C> <C> <C>
Year Ended 10/31:
1999 16.18 1.16 (1.89) (.73)
1998 15.84 1.16 .38 1.54
1997 15.49 1.19 .36 1.55
1996 15.53 1.19 (.03) 1.16
1995 14.05 1.20 1.51 2.71
<CAPTION>
Insured Premium Income 2
<S> <C> <C> <C> <C>
Year Ended 10/31:
1999 14.10 .97 (1.71) (.74)
1998 13.60 .95 .53 1.48
1997 13.04 1.00 .54 1.54
1996 13.03 .99 -- .99
1995 10.99 1.00 2.08 3.08
<PAGE>
<CAPTION>
Less Distributions
------------------------------------------------------------------
Net Net
Investment Investment Capital Capital
Income Income Gains Gains
To Common To Preferred To Common To Preferred
Shareholders Shareholders+ Shareholder Shareholders+ Total
- ------------------------------------------------------------------------------------
Insured Quality
Year Ended 10/31:
<S> <C> <C> <C> <C> <C>
1999 $ (.92) $(.22) $(.13) $(.04) $ (1.31)
1998 (.94) (.25) (.01) -- (1.20)
1997 (.98) (.25) (.07) (.02) (1.32)
1996 (.98) (.25) (.14) (.04) (1.41)
1995 (1.01) (.29) -- -- (1.30)
<CAPTION>
Insured Opportunity
<S> <C> <C> <C> <C> <C>
Year Ended 10/31:
1999 (.94) (.24) (.04) (.01) (1.23)
1998 (.97) (.26) -- -- (1.23)
1997 (.98) (.26) (.02) (.01) (1.27)
1996 (.98) (.26) (.06) (.02) (1.32)
1995 (.98) (.31) -- -- (1.29)
<CAPTION>
Premier Insured Income
<S> <C> <C> <C> <C> <C>
Year Ended 10/31:
1999 (.90) (.23) (.04) (.01) (1.18)
1998 (.92) (.25) (.02) (.01) (1.20)
1997 (.94) (.26) -- -- (1.20)
1996 (.94) (.26) -- -- (1.20)
1995 (.94) (.29) -- -- (1.23)
<CAPTION>
Insured Premium Income 2
<S> <C> <C> <C> <C> <C>
Year Ended 10/31:
1999 (.73) (.23) -- -- (.96)
1998 (.73) (.25) -- -- (.98)
1997 (.73) (.25) -- -- (.98)
1996 (.71) (.27) -- -- (.98)
1995 (.75) (.29) -- -- (1.04)
<PAGE>
<CAPTION>
Total Returns
-------------
Organization
and Offering
Costs Based
and Preferred Ending Based on Ending
Share Net Ending on Net Net
Underwriting Asset Market Market Asset Assets
Discounts Value Value Value* Value* (000)
- -------------------------------------------------------------------------------------
Insured Quality
Year Ended 10/31:
<S> <C> <C> <C> <C> <C> <C>
1999 $(.02) $13.95 $13.1875 (9.65)% (6.77)% $845,789
1998 -- 16.02 15.6250 6.13 8.43 863,179
1997 -- 15.68 15.6250 10.57 8.22 848,362
1996 -- 15.50 15.1250 8.54 5.49 839,304
1995 -- 15.79 15.0000 22.62 16.43 849,583
<CAPTION>
Insured Opportunity
<S> <C> <C> <C> <C> <C> <C>
Year Ended 10/31:
1999 (.01) 14.25 13.3125 (14.71) (5.33) 1,835,516
1998 -- 16.04 16.6250 12.03 7.99 1,892,589
1997 -- 15.78 15.7500 10.18 8.32 1,861,771
1996 -- 15.54 15.2500 9.77 6.50 1,837,731
1995 -- 15.60 14.8750 22.78 18.74 1,841,780
<CAPTION>
Premier Insured Income
<S> <C> <C> <C> <C> <C> <C>
Year Ended 10/31:
1999 (.02) 14.25 13.1250 (17.33) (6.42) 435,668
1998 -- 16.18 16.8750 14.06 8.35 450,466
1997 -- 15.84 15.6875 12.09 8.56 443,173
1996 -- 15.49 14.8750 9.23 5.93 436,134
1995 -- 15.53 14.5000 24.14 17.73 436,920
<CAPTION>
Insured Premium Income 2
<S> <C> <C> <C> <C> <C> <C>
Year Ended 10/31:
1999 -- 12.40 11.5000 (11.16) (7.21) 730,855
1998 -- 14.10 13.6875 16.35 9.28 793,862
1997 -- 13.60 12.4375 15.45 10.15 775,213
1996 -- 13.04 11.4380 6.95 5.70 754,329
1995 -- 13.03 11.3750 23.46 26.20 427,908
<PAGE>
<CAPTION>
Ratios/Supplemental Data
- --------------------------------------------------------------------------------
Before Credit/Reimbursement
--------------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment Ratio of
Expenses Income Expenses Income Expenses
to Average to Average to Average to Average to Average
Net Assets Net Assets Total Total Net Assets
Applicable Applicable Net Assets Net Assets Applicable
to Common to Common Including Including to Common
Shares++ Shares++ Preferred++ Preferred++ Shares++
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Insured Quality
Year Ended 10/31:
1999 1.19% 7.66% .79% 5.11% 1.18%
1998 1.13 7.49 .79 5.21 1.13
1997 1.15 7.88 .79 5.44 1.15
1996 1.17 7.98 .80 5.50 1.17
1995 1.19 8.36 .81 5.73 1.19
<CAPTION>
Insured Opportunity
<S> <C> <C> <C> <C> <C>
Year Ended 10/31:
1999 1.16 7.67 .77 5.07 1.16
1998 1.13 7.60 .77 5.17 1.13
1997 1.15 7.92 .78 5.34 1.15
1996 1.16 8.01 .78 5.38 1.16
1995 1.19 8.43 .79 5.59 1.19
<CAPTION>
Premier Insured Income
<S> <C> <C> <C> <C> <C>
Year Ended 10/31:
1999 1.19 7.49 .79 5.01 1.18
1998 1.16 7.29 .79 5.00 1.16
1997 1.17 7.61 .80 5.18 1.17
1996 1.18 7.70 .80 5.22 1.18
1995 1.20 8.05 .81 5.40 1.20
<CAPTION>
Insured Premium Income 2
<S> <C> <C> <C> <C> <C>
Year Ended 10/31:
1999 1.21 7.11 .79 4.64 1.21
1998 1.20 6.89 .79 4.53 1.20
1997 1.23 7.55 .80 4.89 1.23
1996 1.36 7.53 .86 4.78 1.36
1995 1.37 8.29 .83 5.07 1.37
<PAGE>
<CAPTION>
Ratios/Supplemental Data
-----------------------------------------------------------------------------
After Credit/Reimbursement**
----------------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income Expenses Income
to Average to Average to Average to Average
Net Assets Net Assets Total Total
Applicable Applicable Net Assets Net Assets Portfolio
to Common to Common Including Including Turnover
Shares+ Shares++ Preferred++ Preferred++ Rate
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Insured Quality
Year Ended 10/31:
1999 1.18% 7.67% .79% 5.11% 27%
1998 1.13 7.49 .79 5.21 16
1997 1.15 7.88 .79 5.44 8
1996 1.17 7.98 .80 5.50 33
1995 1.19 8.36 .81 5.73 30
<CAPTION>
Insured Opportunity
<S> <C> <C> <C> <C> <C>
Year Ended 10/31:
1999 1.16 7.67 .77 5.07 26
1998 1.13 7.60 .77 5.17 12
1997 1.15 7.92 .78 5.34 8
1996 1.16 8.01 .78 5.38 18
1995 1.19 8.43 .79 5.59 16
<CAPTION>
Premier Insured Income
<S> <C> <C> <C> <C> <C>
Year Ended 10/31:
1999 1.18 7.50 .79 5.01 32
1998 1.16 7.29 .79 5.00 10
1997 1.17 7.61 .80 5.18 4
1996 1.18 7.70 .80 5.22 3
1995 1.20 8.05 .81 5.40 5
<CAPTION>
Insured Premium Income 2
<S> <C> <C> <C> <C> <C>
Year Ended 10/31:
1999 1.21 7.11 .79 4.64 35
1998 1.20 6.89 .79 4.53 31
1997 1.23 7.55 .80 4.89 37
1996 1.36 7.53 .86 4.78 32
1995 1.37 8.29 .83 5.07 30
* 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.
Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable
(notes 1 and 6).
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
</TABLE>
<PAGE>
Build Your Wealth Automatically
Sidebar text: Nuveen offers a number of convenient ways to add to your portfolio
and earn the tax-free income you need to achieve your financial goals.
Nuveen makes reinvesting easy. A phone call is all it takes to set up your
reinvestment account.
NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares. If you do not
elect to reinvest distributions, all distributions are paid by check or can be
deposited directly into your bank or brokerage account.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. You'll also potentially benefit from dollar-cost averaging, a
technique of investing at regular intervals, which allows you to build a
high-quality, tax-free portfolio conveniently and cost effectively over time.
To be effective, dollar cost averaging requires that you invest over a long
period of time and does not assure that you will profit.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
Income or capital gains taxes may be payable on dividends or distributions that
are reinvested.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may, of course, change your distribution option or withdraw from the Plan at
any time, should your needs or situation change. Should you withdraw, you can
receive a certificate for all whole shares credited to your reinvestment account
and cash payment for fractional shares, or cash payment for all reinvestment
account shares, less brokerage commissions and a $2.50 service fee.
You can also reinvest if your shares are registered in the name of a brokerage
firm, bank, or other nominee. Just ask your investment adviser if the firm will
participate on your behalf. If not, it's easy to have the shares registered in
your name and to apply for a reinvestment account directly. Participants whose
shares are registered in the name of one firm may not be able to transfer the
shares to another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial adviser or call us at (800)
257-8787.
<PAGE>
Fund Information
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT
AND SHAREHOLDER SERVICES
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
YEAR 2000
The concern that computer systems may have problems processing date-related
information in the year 2000 and beyond has challenged businesses and
organizations to thoroughly review all aspects of their operations. We have
undertaken just such an approach at Nuveen in preparation for the millennium.
Over the last 10 years, we have updated or replaced our trading, fund
management, and pricing systems at Nuveen - systems that directly affect our
investors and their financial advisers - to address Year 2000 concerns.
We continue to work closely with our transfer agent, custodian, firms through
whom we buy and sell portfolio securities, and other service partners to monitor
the Year 2000 readiness of their systems, while addressing other remaining
systems issues.
In addition, the Funds hold securities of issuers whose business operations
leave them susceptible to Year 2000 concerns. We seek to evaluate an issuer's
Year 2000 readiness as part of our initial and ongoing research of these
issuers. This is only one of the many factors considered in determining whether
to buy, sell, or continue holding a particular security.
Our Year 2000 review, repair, and testing program has been substantially
completed. This program included industry-wide testing of critical systems and
receipt of satisfactory assurances from critical service providers, vendors, and
issuers regarding their Year 2000 readiness. We will continue more refined
testing of our systems and their relationships with other parties' systems and
will regularly discuss the results of this testing with those parties. We are
also making Year 2000 contingency plans to guide recovery efforts in the event
that, despite our remediation attempts, Year 2000 issues adversely affect the
Funds. Although we can never have complete assurance that the steps we take will
be sufficient to prevent any problems that would impact the Nuveen
Exchange-Traded Funds, we can assure you that we will take all reasonable steps
to prevent disruption of the services provided by your Fund.
FUND POLICIES
The Board of Trustees of your Fund recently modified certain investment policies
of the Fund. The Fund was formerly not permitted to invest more than 5% of its
total assets in Municipal Leases that contain "non-appropriation" clauses. In
addition, your Fund was not permitted to invest more than 10% of its total
assets in Municipal Leases and securities that are unmarketable, illiquid or not
readily marketable. The Municipal Lease market has matured since the Fund's
inception, and non-appropriation leases have become more liquid and widely
accepted. The Nuveen Exchange-Traded Fund Board has eliminated the restrictions
noted above, replacing them with requirements that the Funds limit investments
in non-appropriation Municipal Leases to those that meet one or more of six
criteria that indicate that the issuer will be motivated to continue to
appropriate monies to make the payments under the Municipal Lease.
The Board also eliminated the Fund's policy not to invest more than 5% of its
total assets in unsecured obligations of issuers which, together with their
predecessors, have been in operation for less than three years.
Each fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 12-month period ended October 31, 1999. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
Serving Investors for Generations
Photo of: John Nuveen, Sr.
Since our founding in 1898, John Nuveen & Co. has been synonymous with
investments that withstand the test of time. Today we offer a broad range of
quality investments designed for individuals seeking to build and sustain
wealth. In fact, more than 1.3 million investors have trusted Nuveen to help
them pursue their financial goals.
The cornerstone of Nuveen's investment philosophy is a commitment to disciplined
long-term investment strategies focused on providing consistent, attractive
performance over time - with moderated risk. We emphasize quality securities
carefully chosen through in-depth research, and we follow those securities
closely over time to ensure that they continue to meet our exacting standards.
Whether your focus is long-term growth, dependable current income or sustaining
accumulated wealth, Nuveen offers a wide variety of investments and services to
help meet your unique circumstances and financial planning needs. Our equity,
balanced, and tax-free income funds, along with our defined portfolios and
private asset management, can help you build a better, well-diversified
portfolio.
Talk with your financial adviser to learn more about how Nuveen investment
products and services can help you. Or call us at (800) 257-8787 for more
information, including a prospectus where applicable. Please read that
information carefully before investing.
LOGO:
NUVEEN
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com
FAN-4-10-99
