Nuveen Exchange-Traded Funds
Providing tax-free income to help you live your dreams.
INSURED QUALITY (NQI)
INSURED OPPORTUNITY (NIO)
PREMIER INSURED (NIF)
INSURED PREMIUM INCOME (NPE)
INSURED PREMIUM INCOME 2 (NPX)
SEMIANNUAL REPORT/APRIL 30, 1996
Photographic image of man seated at breakfast table with wife standing behind
him.
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
10 Fund performance
13 Commonly used terms
15 Portfolio of investments
54 Statement of net assets
56 Statement of operations
58 Statement of changes in net assets
61 Notes to financial statements
72 Financial highlights
<PAGE>
Dear shareholder
Photographic image of Richard Franke, Chairman of Nuveen.
"Over time, municipal bonds have proven to be a valuable
and dependable component of successful invest ment programs."
The past 12 months provided a welcome rebound for investors in municipal
bonds, reversing the declines of a year earlier. As long-term interest rates
fell in the last half of 1995, the Nuveen funds continued to provide
attractive levels of dividend income.
Currently, we are experiencing a certain degree of uncertainty in the
markets, as the economy continues to send mixed signals about the pace of
growth and the potential for increased inflation. Although there is no solid
evidence that inflation will reappear, the mere specter has been enough to
keep some investors on the sidelines. The good news is that the Federal
Reserve remains committed to a policy of low inflation and modest economic
growth, which should bode well for the bond markets and bond investors.
During the first part of 1996, investors found opportunities to purchase
higher yielding bonds with strong credit quality. Tax-free securities--and the
taxable-equivalent yields they offer--are bringing investors back to the bond
market. Diminished concerns about a flat tax and other tax reform proposals
that had potential implications for tax-free investments have also bolstered
interest in municipal bonds and bond funds.
Municipal bond funds continue to be a prudent way to invest for the long
term, offering investors quality and an attractive source of tax-free income.
As of April 30, 1996, the current annualized yield on share price for the
exchange-traded funds covered in this report ranged from 6.05% to 6.62%. To
match these yields, an investor in the 36% federal income tax bracket would
have had to earn at least 9.45% on taxable alternatives. Without question,
taxable yields at this level on investments of comparable quality can be
difficult to achieve in today's markets.
<PAGE>
With the strength of the bond market last year, these funds enjoyed a
recovery in share prices over the levels of April 30, 1995, as well as
attractive total returns. The 12-month total returns on net asset value ranged
from 7.57% to 10.43%, equivalent to taxable investments returning 11.38% to
13.88%.
As you may know, on June 30, 1996, I will be retiring as chairman and chief
executive officer of John Nuveen & Co. Incorporated and as chairman of the
board of the Nuveen exchange-traded funds. As I look back over the 41 years I
have spent at Nuveen, I'm proud to have been associated with a firm that holds
integrity, honesty, and value as the cornerstones of its business. I'm
confident that these traditions will continue to be the hallmarks of Nuveen.
Over the past few years, I have been working closely with other Nuveen
managers to ensure that the company and the funds continue to be guided by
strong and talented management. Timothy R. Schwertfeger, who has been with
Nuveen since 1977, will succeed me as chief executive officer and chairman of
Nuveen. He currently serves as executive vice president of Nuveen and
president of the board of directors for the Nuveen exchange-traded funds. I am
very confident in his abilities and those of the entire Nuveen management
team.
The management transition has been well planned, and it will have no effect
on portfolio management or the way dividends are set.
Our focus will continue to be on building shareholder value, providing
research-oriented management, and maintaining our leadership role in the
municipal bond market. With this focus, we anticipate many more years of
progress and accomplishment for our shareholders and our firm.
As this will be the last letter for these funds in which I have the
opportunity to address you, I'd like to take this occasion to thank you for
selecting Nuveen exchange-traded funds. We appreciate your investment in
Nuveen, and we look forward to reports of continued success in the months
ahead.
Sincerely,
Richard J. Franke
Chairman of the Board
June 17, 1996
<PAGE>
Answering your questions
Tom Spalding, head of Nuveen's portfolio management team, discusses investment
performance and recent factors affecting the municipal market.
What are the best measures of fund performance?
Thereare many ways to gauge fund performance, each of which provides certain
insights. Total return is generally recognized as one comprehensive measure of
performance. We use the term "total return" to refer to a share's appreciation
plus reinvested dividend income and capital gain distributions, if applicable.
In 1994, total returns for municipal bond funds--and the entire bond
market--declined, in one of the most difficult periods for bonds in decades.
This was immediately followed by 1995's exceptional market recovery, which
resulted in a rebound in total returns. During the first part of 1996,
municipal bond funds have continued to provide solid total returns, although
at a slightly lower level than during 1995's bull market. The events of these
past few years illustrate the importance of considering risk, or variability
of returns, when comparing total returns. Nuveen's prudent approach to
management protected investors from wide swings in performance by maintaining
a higher level of value than peer group funds during 1994's bear market and
participating only slightly less in 1995's recovery.
Another important measure of fund performance involves assessing whether a
fund has met its stated investment goals. At Nuveen, we continue to emphasize
our funds' goals of providing dependable tax-free dividends and adhering to a
value investing approach. In this regard, the steadiness of dividends over the
long term is a good practical measure of success.
<PAGE>
Some funds' discounts seem to have narrowed over the past few months. What
caused this improvement?
To understand the reasons for this improvement, it may be helpful to remember
that each share has two prices: the net asset value (NAV), which represents
the underlying value of the bonds, and the share price, which is the fund's
price on the stock exchange. As with other securities, share prices for
municipal bond funds change frequently, driven by investors' demand for
shares. When a fund's NAV per share is higher than its share price, we say
that the shares can be purchased at a discount.
In 1995, the recovery of the bond market meant that the net asset values for
some funds appreciated more quickly than their share prices, widening
discounts for a while. This is not unusual, as the market often takes time to
recognize underlying value balanced against the various factors that affect
investor decisions, such as sentiment regarding future interest rates,
inflation forecasts, the relative strength of the stock market, and
legislative and tax outlooks. Over the past few months, investor worries about
tax reform--and the potential effect of a flat tax proposal on tax-free
investments--have waned somewhat. The combination of higher yields, concerns
about the vulnerability of the stock market, and broker recommendations has
prompted a greater demand for municipal bonds and bond funds. With increased
demand, share prices have risen, resulting in narrower discounts. In fact,
some exchange-traded funds are now trading at a premium, that is, their share
prices are higher than their NAVs.
What caused the dividends of some funds to decline recently?
All Nuveen exchange-traded funds are structured to provide an attractive
stream of tax-free income. Some of our funds, including the ones covered in
this report, use leverage as an additional way to enhance that income stream.
To achieve this, a leveraged fund issues preferred as well as common shares;
the pre ferred shares pay lower short-term rates to investors looking for
short-term liquidity. Proceeds from the sale of preferred shares are used to
buy additional bonds, and common shareholders earn extra income from the
difference between the long-term rates earned on the bonds in the portfolio
and the short-term rates paid to preferred shareholders. As long as short-term
rates are lower than those of the bonds in the portfolio, common shareholders
receive more income than they would from an unleveraged fund.
It is important to remember that leverage can increase NAV volatility as
well as investment potential. Also, a sudden rise in interest rates, such as
we experienced in 1994, can affect dividends. On average, short-term rates
have been higher over the past two years than they were in the early 1990s.
This has resulted in higher rates for the preferred shareholders and less
income available for common share dividends.
<PAGE>
As we have seen recently, bond calls can also act to lower dividends. As the
Federal Reserve Board made a succession of rate cuts between July 1995 and
January 1996, long-term municipal bond yields reacted by declining almost 130
basis points from their position at the beginning of 1995. This lower
long-term rate environment caused the call, or early redemption, of many bonds
with higher yields. These older bonds have been replaced in some portfolios
with the bonds available in the market today, most of which have lower yields.
What has been Nuveen's investment approach during this period?
Because we believe that a value approach offers investors greater price
stability in uncertain markets, Nuveen continues to pursue value investing as
the optimal way to meet our investors' objectives. We define value investing
as a disciplined approach to security selection and portfolio construction
designed to deliver above-market performance by identifying individual bonds
with current yields, prices, credit quality, and future prospects that are
exceptionally attractive in relation to other bonds in the market. This
approach was rewarded over the past year, as we saw many of our portfolio
holdings upgraded by the national rating agencies, indicating that our
Research Department's judgments about credit quality were on target.
As opportunity allowed, we moved to protect current income by investing a
larger percentage of our portfolios in non-callable bonds. These bonds cannot
be redeemed before maturity, so their yield is assured for the long term even
if interest rates continue to decline. As another measure of income
protection, we also purchased an increased number of bonds at discounts from
their par value. Because these bonds have coupon rates slightly below market
levels, they are less likely to be called from our portfolios, assuring more
stable yields for our investors.
Photographic image of Tom Spalding.
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on developments in the municipal market.
<PAGE>
NUVEEN INSURED QUALITY MUNICIPAL FUND, INC.
NQI
Dividends of NQI have been consistently at an attractive level despite a
modest reduction in November, reflecting the effects of bond calls.
Shareholders also received a capital gains distribution in December.
<TABLE>
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/09/95 $0.0845
6/13/95 $0.0845
7/12/95 $0.0845
8/11/95 $0.0845
9/13/95 $0.0845
10/11/95 $0.0845
11/13/95 $0.0820
12/13/95 $0.0820 $0.1422
1/10/96 $0.0820
2/13/96 $0.0820
3/13/96 $0.0820
4/11/96 $0.0820
<CAPTION>
FUND HIGHLIGHTS 4/30/96
<S> <C>
Yield 6.56%
Taxable-equivalent yield 10.25%
Annual total return on NAV 7.57%
Taxable-equivalent total return 11.38%
Share price $15.00
NAV $15.22
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC.
NIO
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends. Shareholders also
received a capital gains distribution in December.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/09/95 $0.0820
6/13/95 $0.0820
7/12/95 $0.0820
8/11/95 $0.0820
9/13/95 $0.0820
10/11/95 $0.0820
11/13/95 $0.0820
12/13/95 $0.0820 $0.0571
1/10/96 $0.0820
2/13/96 $0.0820
3/13/96 $0.0820
4/11/96 $0.0820
<CAPTION>
FUND HIGHLIGHTS 4/30/96
<S> <C>
Yield 6.62%
Taxable-equivalent yield 10.34%
Annual total return on NAV 8.47%
Taxable-equivalent total return 12.29%
Share price $14.875
NAV $15.15
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN PREMIER INSURED MUNICIPAL INCOME FUND, INC.
NIF
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/09/95 $0.0780
6/13/95 $0.0780
7/12/95 $0.0780
8/11/95 $0.0780
9/13/95 $0.0780
10/11/95 $0.0780
11/13/95 $0.0780
12/13/95 $0.0780
1/10/96 $0.0780
2/13/96 $0.0780
3/13/96 $0.0780
4/11/96 $0.0780
<CAPTION>
FUND HIGHLIGHTS 4/30/96
<S> <C>
Yield 6.46%
Taxable-equivalent yield 10.09%
Annual total return on NAV 7.81%
Taxable-equivalent total return 11.42%
Share price $14.50
NAV $15.21
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND, INC.
NPE
Shareholders of NPE have consistently received an above market dividend level,
despite modest reductions in August and February.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/09/95 $0.0700
6/13/95 $0.0700
7/12/95 $0.0700
8/11/95 $0.0670
9/13/95 $0.0670
10/11/95 $0.0670
11/13/95 $0.0670
12/13/95 $0.0670
1/10/96 $0.0670
2/13/96 $0.0655
3/13/96 $0.0655
4/11/96 $0.0655
<CAPTION>
FUND HIGHLIGHTS 4/30/96
<S> <C>
Yield 6.05%
Taxable-equivalent yield 9.45%
Annual total return on NAV 8.48%
Taxable-equivalent total return 11.86%
Share price $13.00
NAV $14.18
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND 2
NPX
Shareholders of NPX have enjoyed attractive dividends throughout the past 12
months, despite a modest reduction in November, reflecting the effects of bond
calls.
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/09/95 $0.0615
6/13/95 $0.0615
7/12/95 $0.0615
8/11/95 $0.0615
9/13/95 $0.0615
10/11/95 $0.0615
11/13/95 $0.0595
12/13/95 $0.0595
1/10/96 $0.0595
2/13/96 $0.0595
3/13/96 $0.0595
4/11/96 $0.0595
<CAPTION>
FUND HIGHLIGHTS 4/30/96
<S> <C>
Yield 6.35%
Taxable-equivalent yield 9.92%
Annual total return on NAV 10.43%
Taxable-equivalent total return 13.88%
Share price $11.25
NAV $12.69
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
Commonly used terms
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, April 30, 1996) divided by its closing price per share on
that date.
Taxable equivalent yield
The return an investor subject to a given federal income tax rate would need
to obtain from a fully taxable investment to equal the fund's stated
annualized yield on share price. In this report, this tax rate is assumed to
be 36% for shareholders, based on incomes of $121,300-$263,750 for investors
filing singly, and $147,700-$263,750 for those filing jointly.
Net Asset Value
(NAV)
The market value of all securities and other assets held by an exchange-traded
fund, minus any liabilities. The NAV per share is the fund's net assets, less
the value of its preferred shares, divided by its total number of common
shares outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if
any.
<PAGE>
Taxable equivalent total return
The total return an investor subject to a given federal income tax rate would
need to obtain from a fully taxable investment to equal the Fund's stated
total return on NAV.
Leverage
A fund structure that enhances the income produced for common shareholders by
a long-term municipal bond fund through the issuance of short-term preferred
shares. Preferred shareholders receive short-term tax-free income, while the
proceeds can be used to purchase additional long-term bonds, thus increasing
the portfolio's income for common shareholders.
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the six months ended April 30, 1996. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN INSURED QUALITY MUNICIPAL FUND, INC. (NQI)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALABAMA - 1.7%
$ 5,000,000 Birmingham Special Care Facilities Financing
Authority (Baptist Health Systems, Inc.),
5.875%, 11/15/15 5/05 at 102 Aaa $ 4,920,000
8,500,000 Birmingham Special Care Facilities Financing
Authority (Medical Center East), 7.250%, 7/01/15 7/96 at 102 Aaa 8,711,225
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ALASKA - 1.7%
8,595,000 Alaska Housing Finance Corporation, Insured
Mortgage Program, 7.800%, 12/01/30 12/00 at 102 Aa 8,833,769
5,000,000 Anchorage Electric System, Senior Lien,
7.125%, 6/01/06 6/99 at 102 Aaa 5,392,650
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ARIZONA - 6.6%
Oro Valley Municipal Property Corporation, Water
System Acquisition:
1,000,000 5.550%, 7/01/17 7/08 at 101 Aaa 973,810
3,000,000 5.375%, 7/01/26 7/08 at 101 Aaa 2,817,060
5,000,000 Phoenix Civic Improvement Corporation, Wastewater
System, 6.125%, 7/01/23 (Pre-refunded to 7/01/03) 7/03 at 102 AAA 5,451,100
10,000,000 Pima County Industrial Development Authority
(Carondelet Health Services), 6.750%, 7/01/16 7/01 at 102 Aaa 10,778,600
6,250,000 Scottsdale Industrial Development Authority
(Scottsdale Memorial Hospital), 7.050%, 9/01/18 9/98 at 101 Aaa 6,701,688
10,000,000 Tucson Local Development, Business Finance
Corporation, 6.250%, 7/01/08 7/02 at 102 Aaa 10,632,600
15,250,000 Tucson Water System, 7.100%, 7/01/18 (Pre-refunded
to 7/01/01) 7/01 at 102 Aaa 17,156,250
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ARKANSAS - 2.4%
10,250,000 Arkansas Development Finance Authority, Single
Family Housing, Alternative Minimum Tax,
6.700%, 7/01/27 7/05 at 102 AAA 10,468,530
Pope County Solid Waste Disposal (Arkansas Power
and Light Company), Alternative Minimum Tax:
6,400,000 8.000%, 1/01/21 1/01 at 102 Baa2 6,911,104
2,250,000 8.000%, 1/01/21 1/01 at 102 Aaa 2,542,883
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CALIFORNIA - 3.9%
5,500,000 California Statewide Communities Development
Authority (Salk Institute for Biological Study),
Certificates of Participation, 6.200%, 7/01/24 7/04 at 102 AAA 5,530,305
3,880,000 East Bay Municipal Utility District, Wastewater
System, 5.000%, 6/01/26 6/06 at 102 Aaa 3,373,738
12,800,000 Los Angeles Community Redevelopment Agency
(Bunker Hill Project), 5.625%, 12/01/23 12/03 at 102 Aaa 12,016,768
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA (CONTINUED)
$ 6,910,000 Ontario Redevelopment Financing Authority,
5.850%, 8/01/22 8/03 at 102 Aaa $ 6,798,196
San Diego Public Facilities Financing Authority:
1,000,000 5.000%, 5/15/20 5/05 at 101 Aaa 881,040
4,000,000 5.000%, 5/15/25 5/05 at 101 Aaa 3,485,000
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COLORADO - 3.4%
Colorado Health Facilities Authority (PSL Healthcare
System):
5,000,000 7.250%, 2/15/16 (Pre-refunded to 2/15/01) 2/01 at 102 Aaa 5,628,950
4,500,000 6.250%, 2/15/21 (Pre-refunded to 2/15/01) 2/01 at 102 Aaa 4,878,945
3,530,000 Adams County, Single Family Housing,
8.700% 6/01/12 6/01 at 103 Aaa 3,844,664
6,980,000 Arapahoe County Capital Improvement Trust Public
Highway Authority 6.150%, 8/31/26 8/05 at 103 Aaa 7,195,542
65,000 Arapahoe County, Single Family Housing (GNMA),
Alternative Minimum Tax, 8.200%, 8/01/14 8/98 at 102 AAA 68,318
3,540,000 Castle Pines Metropolitan District, General
Obligation, 7.625%, 12/01/15 12/00 at 102 Aaa 3,970,535
295,000 El Paso County,Single Family Housing, Alternative
Minimum Tax, 7.850%, 9/01/09 9/00 at 102 AAA 308,393
1,715,000 Jefferson County, Single Family Housing,
8.875%, 10/01/13 4/01 at 103 Aaa 1,847,638
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.1%
15,450,000 District of Columbia General Obligation,
7.500%, 6/01/10 (Pre-refunded to 6/01/00) 6/00 at 102 Aaa 17,372,907
- ----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.4%
11,625,000 Florida Housing Finance Agency, Single Family
Housing, Alternative Minimum Tax, 6.650%, 7/01/26 7/04 at 102 AAA 11,795,074
8,080,000 Orange County Health Facilities Authority,
5.750%, 11/15/25 11/05 at 102 Aaa 7,818,046
- ----------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.6%
4,500,000 Georgia Residential Finance Authority, Single Family
Housing, Alternative MinimumTax,
8.300%, 12/01/19 12/98 at 103 Aa 4,734,000
- ----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS 7.6%
5,750,000 Illinois Development Finance Authority (Catholic
Health Partners Services), 5.300%, 2/15/18 2/05 at 102 AAA 5,119,685
9,500,000 Illinois Health Facilities Authority (The University
of Chicago Hospitals), 6.125%, 8/15/21 8/04 at 102 Aaa 9,486,795
5,000,000 Central Lake County Joint Action Water Agency,
7.000%, 5/01/20 (Pre-refunded to 5/01/01) 5/01 at 102 Aaa 5,587,850
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 10,000,000 Chicago General Obligation, 6.125%, 1/01/16 7/05 at 102 Aaa $ 10,095,600
6,000,000 Chicago O'Hare International Airport,
6.375%, 1/01/12 1/05 at 102 Aaa 6,307,620
Chicago Public Building Commission (Chicago
Board of Education):
6,280,000 7.125%, 1/01/15 1/00 at 102 Aaa 6,686,002
10,325,000 5.750%, 12/01/18 12/03 at 102 Aaa 9,866,157
545,000 Moline, Rock Island and Urbana (GNMA),
Alternative Minimum Tax, 8.050%, 8/01/23 8/00 at 102 Aaa 575,858
9,300,000 University of Illinois Auxiliary Facilities,
5.600%, 10/01/22 10/06 at 102 Aaa 8,763,855
- ----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 7.0%
4,000,000 Indiana Development Finance Authority (PSI Energy,
Inc.), Alternative Minimum Tax, 5.750%, 2/15/28 2/03 at 102 Aaa 3,748,280
2,890,000 Indiana Housing Finance Authority, Residential
Mortgage, Alternative Minimum Tax,
8.375%, 1/01/20 1/99 at 102 1/2 Aa 3,012,218
9,500,000 Indiana Housing Finance Authority, Single Family
Housing, Alternative Minimum Tax,
7.800%, 1/01/22 7/00 at 102 Aaa 10,009,865
6,000,000 Jasper County Pollution Control (Northern Indiana
Public Service Company), 7.100%, 7/01/17 7/01 at 102 Aaa 6,515,520
9,645,000 Marion County Convention and Recreational
Facilities Authority, 7.000%, 6/01/21
(Pre-refunded to 6/01/01) 6/01 at 102 Aaa 10,796,999
8,620,000 Michigan City School Building Corporation,
5.150%, 1/01/13 7/05 at 102 Aaa 7,999,619
4,230,000 Rockport Pollution Control (Indiana Michigan
Power Company), 7.600%, 3/01/16 3/01 at 102 Aaa 4,737,304
10,000,000 St. Joseph County Hospital Authority (Memorial
Hospital of South Bend), 7.000%, 8/15/20 8/01 at 102 Aaa 10,808,000
- ----------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.7%
5,305,000 Dubuque County (Sisters of Mercy Health
Corporation), 7.000%, 8/15/21 8/01 at 102 Aaa 5,738,737
- ----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 5.3%
2,905,000 Louisiana Housing Finance Agency (GNMA), Single
Family Housing, Alternative Minimum Tax,
8.300%, 11/01/20 11/98 at 102 Aaa 3,030,467
7,000,000 Louisiana Housing Finance Agency, Single Family
Housing, Alternative Minimum Tax,
6.450%, 6/01/27 6/06 at 102 1/2 Aaa 7,091,280
10,095,000 Louisiana Stadium and Exposition District,
6.050%, 7/01/24 7/05 at 102 Aaa 10,171,419
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOUISIANA (CONTINUED)
$ 4,325,000 Denham Springs-Livingston Housing Authority,
Single Family Housing, (GNMA/FNMA),
Alternative Minimum Tax, 6.875%, 2/01/28 2/05 at 102 AAA 4,317,172
13,170,000 New Orleans General Obligation, 6.200%, 10/01/21 10/05 at 102 Aaa 13,437,483
5,715,000 Orleans Levee District Public Improvement,
5.950%, 11/01/15 12/05 at 103 Aaa 5,634,018
- ----------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.6%
12,745,000 Maine Housing Authority, Mortgage Purchase,
7.400%, 11/15/22 5/01 at 102 Aaa 13,413,730
- ----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.9%
7,100,000 Massachusetts Housing Finance Agency, Single
Family Housing, 7.500%, 12/01/13 6/99 at 102 Aaa 7,506,688
- ----------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.0%
13,820,000 Minneapolis/St. Paul Housing Finance Board, Single
Family Housing, Alternative Minimum Tax,
8.300%, 8/01/21 8/98 at 102 AAA 14,499,391
1,885,000 St. Louis Park, Single Family Housing, (GNMA),
7.250%, 4/20/23 4/01 at 102 Aaa 1,983,661
- ----------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 2.9%
8,750,000 Mississippi Home Corporation, Single Family
Housing, Alternative Minimum Tax,
5.500%, 6/01/29 6/06 at 105 Aaa 9,527,700
7,225,000 Mississippi Housing Finance Corporation, Single
Family Housing (GNMA), Alternative Minimum
Tax, 8.250%, 10/15/18 10/99 at 102 Aaa 7,592,825
Harrison County Wastewater Management District:
2,545,000 8.500%, 2/01/13 No Opt. Call Aaa 3,318,655
2,715,000 7.750%, 2/01/14 No Opt. Call Aaa 3,318,952
- ----------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.8%
16,000,000 Nevada General Obligation, 5.500%, 11/01/25 11/05 at 101 Aaa 15,133,760
3,270,000 Clarke County Industrial Development Authority
(Nevada Power CompanyProject), Alternative
Minimum Tax, 7.800%, 6/01/20 6/00 at 102 Aaa 3,589,643
13,185,000 Washoe County (Washoe Medical Center),
6.000%, 6/01/19 6/04 at 102 Aaa 12,997,905
- ----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.5%
3,750,000 New Jersey Health Care Facilities Financing Authority
(Monmouth Medical Center), 6.250%, 7/01/24 7/04 at 102 Aaa 3,844,613
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW MEXICO - 2.6%
$ 3,850,000 New Mexico Mortgage Finance Authority, Multi-
Family Housing, 7.625%, 1/01/24 1/01 at 102 AAA $ 4,123,658
5,000,000 Albuquerque Airport, Alternative Minimum Tax,
6.600%, 7/01/16 7/00 at 105 Aaa 5,199,750
6,000,000 Farmington Pollution Control (Southern California
Edison Company), 7.200%, 4/01/21 4/01 at 102 Aa3 6,528,120
5,750,000 Santa Fe, 6.300%, 6/01/24 (Pre-refunded to 6/01/04) 6/04 at 100 Aaa 6,275,838
- ----------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 16.8%
7,000,000 New York State Energy Research and Development
Authority, 6.100%, 8/15/20 7/05 at 102 A1 7,016,170
12,860,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home, Insured
Mortgage (Kingsbrook Jewish Medical Center),
7.600%, 2/15/29 2/99 at 102 Aa 13,851,120
20,250,000 New York State Medical Care Facilities Finance
Agency (St. Luke's-Roosevelt Hospital Center),
7.450%, 2/15/29 (Pre-refunded to 2/15/00) 2/00 at 102 Aaa 22,647,398
5,000,000 New York State Medical Care Facilities Finance
Agency (Isabella Geriatric Center/Arden Hill),
5.900%, 8/15/33 8/03 at 102 Aaa 4,899,800
12,000,000 New York State Medical Care Facilities Finance
Agency, New York Hospital, FHA-Insured
Mortgage, 6.900%, 8/15/34 2/05 at 102 Aaa 12,822,840
5,000,000 New York State Mortgage Agency, Homeowner
Mortgage, Alternative Minimum Tax,
7.950%, 10/01/21 2/01 at 102 Aa 5,310,850
New York City General Obligation:
2,000,000 8.000%, 3/15/11 3/00 at 101 1/2 Aaa 2,226,480
6,000,000 7.250%, 3/15/19 3/00 at 101 1/2 Aaa 6,501,060
17,700,000 New York City Housing Development Corporation,
Multi-Unit Housing, 7.250%, 6/01/19 6/01 at 102 Aaa 18,790,143
New York City Municipal Water Financing Authority:
20,000,000 5.500%, 6/15/23 6/05 at 100 Aaa 18,858,200
10,000,000 6.000%, 6/15/25 6/05 at 101 Aaa 9,992,300
15,000,000 New York City Transit Authority, Transit Facilities
(Livingston Plaza Project), 7.500%, 1/01/20
(Pre-refunded to 1/01/00) 1/00 at 102 Aaa 16,768,050
- ----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.7%
6,500,000 North Carolina Municipal Power Agency No. 1,
(Catawba), 5.000%, 1/01/18 1/03 at 102 Aaa 5,756,530
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NORTH DAKOTA - 1.1%
$ 9,000,000 Mercer County Pollution Control (Basin Electric
Power Coop), 6.050%, 1/01/19 6/05 at 102 Aaa $ 9,030,690
- ----------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.0%
9,790,000 Lucas County (The Toledo Hospital),
5.000%, 11/15/22 (DD) 11/03 at 102 Aaa 8,538,740
- ----------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.6%
2,245,000 Oklahoma Housing Finance Agency, Single Family
Housing, 7.200%, 3/01/11 3/01 at 102 Aaa 2,372,628
9,900,000 Pottawatomie County Development Authority
(North Deer Creek Reservoir Project),
7.375%, 7/01/26 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 11,104,533
- ----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 5.4%
8,685,000 Pennsylvania Higher Education Assistance Agency,
Student Loan, 6.800%, 12/01/00 No Opt. Call Aaa 9,358,695
7,000,000 Berks County Municipal Authority (Reading Hospital
and Medical Center), 6.100%, 10/01/23 10/04 at 102 Aaa 7,077,560
7,250,000 Lehigh County Industrial Development Authority,
6.150%, 8/01/29 8/05 at 102 Aaa 7,340,190
14,190,000 Philadelphia Water and Sewer System,
7.000%, 8/01/21 (Pre-refunded to 8/01/01) 8/01 at 102 Aaa 15,925,153
5,000,000 Sayre Health Care Facilities Authority (Guthrie
Healthcare System), 7.100%, 3/01/17 3/01 at 102 Aaa 5,442,150
- ----------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 3.4%
12,500,000 Rhode Island Depositors Economic Protection
Corporation, Special Obligation, 7.500%, 8/01/14
(Pre-refunded to 8/01/01) 8/01 at 102 Aaa 14,303,875
Rhode Island Port Authority and Economic
Development Corporation, Airport System,
Alternative Minimum Tax:
3,500,000 5.250%, 7/01/15 7/03 at 102 Aaa 3,142,440
5,050,000 6.625%, 7/01/24 7/04 at 102 Aaa 5,223,013
5,000,000 Providence Public Building Authority,
7.250%, 12/15/10 (Pre-refunded to 12/15/00) 12/00 at 102 Aaa 5,632,600
- ----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.8%
1,730,000 Tennessee Housing Development Agency,
Homeownership Program, Alternative Minimum
Tax, 8.125%, 7/01/21 7/98 at 103 Aa 1,746,470
5,170,000 Sullivan County Health Educational and Housing
Facilities Board (Holston Valley Health Care Inc.),
5.750%, 2/15/13 2/03 at 102 Aaa 5,133,758
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TEXAS - 5.2%
$ 8,000,000 Abilene Health Facilities Development Corporation,
(Hendrick Medical Center), 6.150%, 9/01/25 9/05 at 102 Aaa $ 8,206,080
8,300,000 Bexar County Health Facilities Development
Corporation (Incarnate Word Health Services),
6.100%, 11/15/23 11/05 at 102 Aaa 8,419,935
4,695,000 Harris County Health Facilities Development
Corporation (Texas Medical Center),
7.375%, 5/15/20 5/00 at 102 Aaa 5,134,593
Harris County Hospital District:
3,000,000 7.500%, 2/15/03 No Opt. Call Aaa 3,417,840
5,000,000 7.400%, 2/15/10 No Opt. Call Aaa 5,896,000
4,100,000 Houston Airport System, Senior Lien, Alternative
Minimum Tax, 8.200%, 7/01/17 7/98 at 102 1/2 Aaa 4,460,431
7,325,000 Matagorda County Navigation District No. 1
(Houston Lighting and Power Company),
Alternative Minimum Tax, 7.875%, 11/01/16 11/96 at 102 Aaa 7,595,952
- ----------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.9%
10,770,000 Intermountain Power Agency, 5.000%, 7/01/23 7/03 at 100 Aa 9,174,963
6,000,000 Salt Lake City (IHC Hospitals), 8.000%, 5/15/07 No Opt.Call AAA 6,953,220
- ----------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.3%
2,205,000 Chesapeake Hospital Authority (Chesapeake General
Hospital), 7.600%, 7/01/00 No Opt. Call Aaa 2,398,708
- ----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.9%
Wisconsin Health and Educational Facilities
Authority (Waukesha Memorial Hospital):
6,405,000 7.250%, 8/15/19 (Pre-refunded to 8/15/00) 8/00 at 102 Aaa 7,170,653
450,000 7.250%, 8/15/19 8/00 at 102 Aaa 487,268
- ----------------------------------------------------------------------------------------------------------------------------------
$787,125,000 Total Investments - (cost $777,376,377) - 98.8% 818,361,099
- ----------------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.6%
$ 1,000,000 California Health Finance Financing Authority
(St. Joseph Health System), Series A, Variable Rate
Demand Bonds, 3.500%, 7/01/13+ VMIG-1 $ 1,000,000
400,000 California Health Facilities Financing Authority
(St. Joseph Health System), Series B, Variable Rate
Demand Bonds, 3.450%, 7/01/13+ VMIG-1 400,000
1,100,000 California Health Facilities Financing Authority
(St. Joseph Health System), Series 1991B, Variable
Rate Demand Bonds, 3.450%, 7/01/09+ VMIG-1 1,100,000
300,000 California Pollution Control Finance Authority (Shell
Oil Company), Variable Rate Demand Bonds,
3.500%, 10/01/07+ VMIG-1 300,000
1,610,000 California Statewide Community Development
Authority, Certificates of Participation, Series 1993,
Variable Rate Demand Bonds, 3.500%, 12/01/18+ A-1+ 1,610,000
500,000 Chicago O'Hare International Airport (American
Airlines, Inc.), Variable Rate Demand Bonds,
4.100%, 12/01/17+ P-1 500,000
- ----------------------------------------------------------------------------------------------------------------------------------
$ 4,910,000 Total Temporary Investments - 0.6% 4,910,000
- ----------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.6% 4,883,224
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $828,154,323
- ----------------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 102 $751,242,315 92%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 8 53,191,510 6
PORTFOLIO OF A+ A1 1 7,016,170 1
INVESTMENTS BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 1 6,911,104 1
(EXCLUDING
TEMPORARY
INVESTMENTS):
- -------------------------------------------------------------------------------------------------------------------
TOTAL 112 $818,361,099 100%
<FN>
All of the bonds in the portfolio, excluding temporary investments in
short-term municipal securities, are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by
an escrow or trust containing sufficient U.S. Government or U.S. Government
agency securities, any of which ensure the timely payment of principal and
interest.
* Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions at
varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
(DD) Security purchased on a delayed delivery basis (note 1).
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC. (NIO)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALABAMA - 1.9%
$ 2,105,000 Alabama Housing Finance Authority, Single Family
Housing (GNMA), Alternative Minimum Tax,
7.900%, 10/01/22 10/00 at 102 AAA $ 2,188,779
3,850,000 Alabama Housing Finance Authority (GNMA),
6.500%, 7/20/30 7/05 at 103 Aaa 3,904,632
11,000,000 Birmingham Special Care Facilities Financing
Authority (Baptist Health Systems, Inc.),
5.875%, 11/15/20 5/05 at 102 Aaa 10,761,960
3,745,000 Demopolis General Obligation, 6.900%, 6/01/16
(Pre-refunded to 6/01/01) 6/01 at 102 Aaa 4,176,986
8,000,000 Houston County Health Care Authority (Southeast
Alabama Medical Center), 7.250%, 10/01/19
(Pre-refunded to 10/01/99) 10/99 at 102 Aaa 8,833,760
4,250,000 Shelby County General Obligation, 5.875%, 2/01/17 2/05 at 102 Aaa 4,199,383
- ----------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.9%
4,000,000 Alaska Energy Authority (Bradley Lake Hydroelectric
Project), 7.250%, 7/01/21 7/00 at 102 Aaa 4,392,520
Alaska Housing Finance Corporation, Insured
Mortgage:
4,250,000 7.750%, 12/01/14 12/00 at 102 Aa 4,352,425
7,535,000 7.800%, 12/01/30 12/00 at 102 Aa 7,744,322
- ----------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.1%
15,000,000 Pima County Industrial Development Authority
(Tucson Electric), 7.250%, 7/15/10 1/02 at 103 Aaa 16,447,950
Scottsdale Industrial Development Authority
(Scottsdale Memorial Hospitals):
1,250,000 5.700%, 9/01/15 9/01 at 102 Aaa 1,220,575
3,000,000 5.700%, 9/01/18 9/01 at 102 Aaa 2,905,890
- ----------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.9%
14,955,000 Arkansas Development Finance Authority, Single
Family Housing (GNMA), Alternative Minimum
Tax, 7.400%, 9/01/23 9/01 at 102 AAA 15,631,116
- ----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 7.5%
California Health Facilities Financing Authority
(Children's Hospital of San Diego):
8,500,000 5.375%, 7/01/16 7/06 at 102 Aaa 7,896,585
4,000,000 5.375%, 7/01/20 7/06 at 102 Aaa 3,680,400
California Health Facilities Financing Authority
(Catholic Healthcare West):
9,000,000 6.500%, 7/01/16 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 9,926,910
14,000,000 6.650%, 7/01/21 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 15,545,740
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA (CONTINUED)
$ 1,665,000 California Housing Finance Agency, Home Mortgage,
Alternative MinimumTax, 7.450%, 8/01/11 8/01 at 102 Aa $ 1,731,683
6,135,000 California Housing Finance Agency, 6.250%, 8/012/25 8/04 at 102 Aaa 6,208,313
California Rural Mortgage Finance Authority, Single
Family Housing, Alternative Minimum Tax:
4,810,000 7.550%, 11/01/26 No Opt.Call AAA 5,284,795
4,000,000 6.450%, 5/01/27 No Opt.Call AAA 4,344,000
3,100,000 Campbell Union School District, General Obligation,
6.250%, 8/01/19 8/04 at 102 Aaa 3,188,226
8,200,000 Castaic Lake Water Agency, Certificates of
Participation, 6.300%, 8/01/20 8/04 at 102 Aaa 8,426,484
11,750,000 East Bay Municipal Utility District (Water System),
5.000%, 6/01/21 6/03 at 102 Aaa 10,201,350
5,500,000 Fallbrook Union High School District, General
Obligation, 6.250%, 9/01/19 9/04 at 102 Aaa 5,627,600
6,530,000 LaQuinta Financing Authority (City Hall Project),
6.650%, 10/01/18 10/00 at 102 Aaa 6,991,279
11,200,000 Los Angeles Wastewater System, 4.700%, 11/01/19 11/03 at 102 Aaa 9,237,536
9,000,000 Orange CountyRecovery, 5.750%, 6/01/15 6/05 at 102 Aaa 8,841,060
4,745,000 Palm Desert Financing Authority, 5.850%, 4/01/25 4/05 at 102 Aaa 4,676,387
6,500,000 Salinas (GNMA) (Villa Sierra), 6.600%, 7/20/30 7/04 at 102 AAA 6,629,805
11,000,000 Santa Ana Financing Authority, 6.250%, 7/01/24 No Opt.Call Aaa 11,594,990
5,500,000 Santa Clara Financing Authority, 6.750%, 11/15/20 11/04 at 102 Aaa 5,967,775
- ----------------------------------------------------------------------------------------------------------------------------------
COLORADO - 0.8%
14,150,000 Denver Board of Water Commissioners, Certificates
of Participation, 6.625%, 11/15/11 11/01 at 101 Aaa 15,219,599
- ----------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.2%
2,500,000 Connecticut Health and Educational Facilities
Authority (Choate Rosemary Hall), 7.000%, 7/01/25 7/04 at 101 Aaa 2,745,200
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.6%
19,355,000 District of Columbia, General Obligation,
7.500%, 6/01/09 (Pre-refunded to 6/01/99) 6/99 at 102 Aaa 21,409,146
3,000,000 District of Columbia (National Rehabilitation Hospital),
7.100%, 11/01/11 (Pre-refunded to 11/01/99) 11/99 at 102 Aaa 3,305,310
6,000,000 District of Columbia (Children's Hospital),
6.250%, 7/15/19 7/02 at 102 Aaa 6,062,520
District of Columbia Housing Finance Agency,
Single Family Housing, Alternative MinimumTax:
4,950,000 7.850%, 12/01/22 6/00 at 102 AAA 5,189,036
4,820,000 7.100%, 12/01/24 12/01 at 102 AAA 4,958,720
5,000,000 District of Columbia (American College of
Obstetricians and Gynecologists), 6.500%, 8/15/18 8/01 at 102 Aaa 5,230,850
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FLORIDA - 2.6%
$ 15,550,000 Florida Housing Finance Agency, Home Ownership,
8.595%, 11/01/17 No Opt. Call AAA $ 16,912,958
5,895,000 Florida Housing Finance Agency, Single Family
Housing (GNMA), 7.100%, 1/01/17 3/97 at 103 AAA 6,121,427
10,000,000 Dade CountyAviation, 5.750%, 10/01/26 10/06 at 102 Aaa 9,645,000
4,500,000 Dade County Housing Finance Authority, Single
Family Housing, 6.950%, 12/15/12 12/01 at 102 Aaa 4,732,830
10,000,000 Escambia County Housing Finance Authority,
Single Family Housing, Alternative MinimumTax,
6.950%, 10/01/27 4/05 at 102 Aaa 10,117,400
- ----------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.8%
8,315,000 Fulton-Dekalb Hospital Authority, 6.900%, 1/01/15
(Pre-refunded to 1/01/01) 1/01 at 102 Aaa 9,230,482
5,000,000 Gainesville and Hall County Hospital Authority
(Northeast Georgia Healthcare Project),
6.000%, 10/01/20 10/05 at 102 Aaa 4,990,150
- ----------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.6%
2,990,000 Idaho Housing Agency, Single Family Housing,
6.750%, 7/01/22 No Opt. Call Aa 3,083,079
Idaho Housing Agency, Single Family Housing,
Alternative Minimum Tax:
2,880,000 6.900%, 7/01/26 No Opt. Call Aa 2,983,219
4,365,000 6.600%, 7/01/27 1/05 at 102 Aaa 4,441,388
- ----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 10.7%
5,000,000 Illinois Civic Center, 7.000%, 12/15/10 12/00 at 102 Aaa 5,471,250
5,000,000 Illinois Development Finance Authority (Catholic
Health Partners Services), 5.300%, 2/15/18 2/05 at 102 AAA 4,451,900
9,500,000 Illinois General Obligation, 5.250%, 12/01/20 12/05 at 102 Aaa 8,595,220
20,000,000 Illinois Health Facilities Authority (Brokaw-
Mennonite Association-Bromenn Health),
6.250%, 8/15/18 8/02 at 102 Aaa 20,171,200
9,000,000 Illinois Health Facilities Authority, 6.250%, 8/15/15 8/04 at 102 Aaa 9,125,100
15,000,000 Illinois Health Facilities Authority (Northwestern
Memorial Hospital), 6.000%, 8/15/24 8/04 at 102 Aa 14,629,800
3,500,000 Illinois Health Facilities Authority (Alexian Brothers
Medical Center), 7.125%, 1/01/21 1/01 at 102 Aaa 3,769,605
2,500,000 Illinois Health Facilities Authority (Memorial
Medical Center System), 7.100%, 10/01/21 10/01 at 102 Aaa 2,691,250
3,785,000 Illinois Housing Development Authority, Residential
Housing, Alternative Minimum Tax,
7.400%, 2/01/20 8/99 at 102 Aa 3,888,028
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
Illinois State Department of Central Management
Services (Illinois Student Assistance Commission):
$ 2,965,000 6.875%, 7/01/07 7/02 at 102 Aaa $ 3,267,993
6,085,000 6.950%, 7/01/13 7/02 at 102 Aaa 6,689,971
6,515,000 Berwyn (MacNeal Memorial Hospital),
7.000%, 6/01/15 (Pre-refunded to 6/01/01) 6/01 at 102 Aaa 7,290,024
4,055,000 Central Lake County Joint Action Water Agency,
General Obligation, 6.000%, 2/01/19 2/03 at 102 Aa 3,987,890
10,000,000 Chicago General Obligation (Central Public Library
Project), 6.850%, 1/01/17 (Pre-refunded to
7/01/02) 7/02 at 101 1/2 Aaa 11,215,700
8,425,000 Chicago General Obligation, 5.500%, 1/01/24 1/04 at 102 Aaa 7,800,202
5,750,000 Chicago Motor Fuel Tax, 6.500%, 1/01/16
(Pre-refunded to 1/01/01) 1/01 at 100 Aaa 6,190,163
Cook County General Obligation:
18,430,000 6.750%, 11/01/18 (Pre-refunded to 11/01/01) 11/01 at 102 Aaa 20,552,583
26,475,000 6.250%, 11/01/21 11/01 at 102 Aaa 26,766,755
6,370,000 Decatur Memorial Hospital, 7.750%, 10/01/21 10/01 at 102 Aaa 7,136,311
Eastern Illinois University Auxiliary Facilities
System:
12,355,000 0.000%, 10/01/09 10/04 at 74 3/32 Aaa 5,075,805
16,470,000 0.000%, 4/01/16 10/04 at 47 3/32 Aaa 4,096,913
4,560,000 Macon County (Millikin University),
6.250%, 10/01/16 10/05 at 100 Aaa 4,658,952
5,000,000 Regional Transportation Authority, 6.750%, 6/01/25
(Pre-refunded to 6/01/04) 6/04 at 102 Aaa 5,659,050
- ----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.3%
2,600,000 Indiana Health Facilities Financing Authority
(Community Hospitals of Indiana), 7.000%, 7/01/21
(Pre-refunded to 7/01/01) 7/01 at 102 Aaa 2,914,210
3,500,000 Indiana Health Facilities Financing Authority
(Community Hospital Projects), 5.700%, 5/15/22 5/05 at 102 Aaa 3,338,090
825,000 Indiana Housing Finance Authority, Alternative
Minimum Tax, 7.800%, 1/01/22 7/00 at 102 Aaa 832,392
2,215,000 Indiana Housing Finance Authority, Single Family
Housing, Alternative Minimum Tax, 7.800%, 1/01/22 7/00 at 102 Aaa 2,326,835
10,000,000 Fort Wayne Hospital Authority (Parkview Memorial
Hospital), 6.400%, 11/15/22 11/02 at 102 A1 10,002,900
12,250,000 Lawrenceburg Pollution Control (Indiana Michigan
Power Company), 7.000%, 4/01/15 4/02 at 102 Aaa 13,432,738
12,950,000 Marion County Convention and Recreational Facilities
Authority, 7.000%, 6/01/21 (Pre-refunded to 6/01/01) 6/01 at 102 Aaa 14,496,748
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INDIANA (CONTINUED)
$ 9,545,000 New Prairie School Building Corporation,
7.200%, 7/15/21 (Pre-refunded to 7/1/04) 7/04 at 102 Aaa $ 11,084,227
5,000,000 Penn High School Building Corporation,
6.125%, 1/15/16 7/05 at 101 Aaa 5,092,800
14,000,000 St. Joseph County Hospital Authority (Holy Cross
Health System), 7.000%, 12/01/12 12/01 at 102 Aaa 15,109,360
- ----------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.4%
5,000,000 Davenport (Mercy Hospital), 6.250%, 7/01/22 7/02 at 102 Aaa 5,084,100
11,400,000 Davenport (St. Luke's Hospital), 7.400%, 7/01/20 7/00 at 102 Aaa 12,523,470
7,000,000 Polk County, Insured Health Facilities (Mercy Health
Center of Central Iowa), 6.750%, 11/01/15 11/01 at 101 Aaa 7,498,680
- ----------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.2%
2,860,000 Sedgwick County and Shawnee (GNMA),
7.300%, 12/01/12 6/01 at 103 Aaa 3,004,487
- ----------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.2%
10,000,000 Danville Multi-City Lease (Louisville and Jefferson
County Metropolitan Sewer), 6.800%, 3/01/19
(Pre-refunded to 3/01/02) 3/02 at 102 Aaa 11,186,000
53,000,000 Jefferson County Capital Projects Corporation,
0.000%, 8/15/19 (Pre-refunded to 2/15/01) 2/01 at 24 11/16 Aaa 10,355,670
- ----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 4.1%
15,650,000 Louisiana Public Facilities Authority (Southern
Baptist Hospital), 6.800%, 5/15/12 (Pre-refunded
to 5/15/02) 5/02 at 102 Aaa 17,554,136
25,000,000 Ernest N. Morial-New Orleans Exhibition Hall,
5.600%, 7/15/25 7/06 at 101 Aaa 23,808,750
5,340,000 New Orleans Public Improvement, 7.000%, 9/01/19
(Pre-refunded to 9/01/02) 9/02 at 100 Aaa 5,985,659
10,000,000 Orleans Levee District Public Improvement,
5.950%, 11/01/15 12/05 at 103 Aaa 9,858,300
10,165,000 Orleans Parish School Board, 5.200%, 2/01/14 2/05 at 102 Aaa 9,424,480
3,000,000 St. Charles Parish Pollution Control (Louisiana Power
and Light Company), Alternative Minimum Tax,
7.500%, 6/01/21 6/01 at 102 Aaa 3,303,480
3,500,000 Tangipahoa Parish Hospital Service District No. 1,
6.250%, 2/01/24 2/04 at 102 Aaa 3,567,375
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MAINE - 1.1%
Maine Health and Higher Educational Facilities
Authority:
$ 10,500,000 6.375%, 7/01/21 7/01 at 102 Aaa $ 10,889,445
9,240,000 5.500%, 7/01/23 7/04 at 102 Aaa 8,548,109
- ----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.9%
6,000,000 Massachusetts Health and Educational Facilities
Authority (Brigham and Women's Hospital),
6.750%, 7/01/24 7/01 at 102 Aaa 6,371,340
5,050,000 Massachusetts Health and Educational Facilities
Authority (Fallon Health Care), 6.750%, 6/01/20 6/01 at 102 Aaa 5,427,589
10,500,000 Massachusetts Health and Educational Facilities
Authority (New England Medical Center),
6.625%, 7/01/25 7/02 at 102 Aaa 10,997,175
5,850,000 Massachusetts Health and Educational Facilities
Authority (South Shore Hospital), 6.500%, 7/01/22 7/02 at 102 Aaa 6,080,081
8,400,000 Massachusetts Health and Educational Facilities
Authority (Berkshire Health System),
6.000%, 10/01/13 10/05 at 102 Aaa 8,479,044
Massachusetts Housing Finance Agency, Single
Family Housing, Alternative Minimum Tax:
8,675,000 7.750%, 12/01/20 6/99 at 102 Aa 9,125,146
14,170,000 7.150%, 12/01/24 6/01 at 102 Aa 14,655,323
21,785,000 Massachusetts Housing Finance Authority, Insured
Rental Housing, Alternative Minimum Tax,
6.650%, 7/01/19 7/04 at 102 Aaa 22,381,691
5,000,000 Massachusetts Housing Finance Authority,
6.100%, 12/01/16 12/05 at 102 Aaa 5,003,800
- ----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 5.1%
11,000,000 Michigan Hospital Finance Authority (Sisters of
Mercy Health Corporation), 5.250%, 8/15/21 8/03 at 102 Aaa 9,912,430
8,860,000 Michigan Housing Development Authority, Rental
Housing, Alternative Minimum Tax,
7.150%, 4/01/10 1/02 at 102 A+ 9,267,649
15,000,000 Michigan Strategic Fund (The Detroit Edison
Company), 6.875%, 12/01/21 12/01 at 102 Aaa 16,174,800
12,250,000 Detroit Economic Development Corporation,
Resource Recovery, Alternative Minimum Tax,
6.875%, 5/01/09 5/01 at 102 Aaa 13,056,663
20,300,000 Detroit Sewage Disposal System, 6.625%, 7/01/21
(Pre-refunded to 7/01/01) 7/01 at 102 Aaa 22,417,290
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MICHIGAN (CONTINUED)
$ 8,000,000 Gaylord Community Schools, General Obligation,
0.000%, 5/01/21 5/07 at 37 3/4 Aaa $ 1,648,080
8,500,000 Jackson County Hospital Finance Authority (W. A.
Foote Memorial Hospital), 5.250%, 6/01/23 6/03 at 102 Aaa 7,604,440
27,000,000 Okemos Public Schools, General Obligation,
Unlimited Tax, 0.000%, 5/01/21 (Pre-refunded
to 5/01/06) 5/06 at 34 17/32 Aaa 5,443,470
5,590,000 Western Utilities Authority, Sewage Disposal System,
6.500%, 1/01/19 1/02 at 100 Aaa 5,753,116
- ----------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.7%
Minnesota Housing Finance Agency, Single
Family Housing, Alternative Minimum Tax:
5,000,000 6.850%, 1/01/24 7/02 at 102 Aa 5,134,450
7,420,000 6.700%, 7/01/26 1/04 at 102 AA+ 7,561,722
- ----------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.6%
5,855,000 Missouri Housing Development Commission,
Single Family (GNMA), 6.900%, 7/01/18 1/02 at 102 AAA 6,126,906
4,185,000 Missouri Housing Development Commission,
Single Family Housing, Alternative Minimum
Tax, 7.900%, 2/01/21 2/99 at 102 AAA 4,375,250
- ----------------------------------------------------------------------------------------------------------------------------------
MONTANA - 1.5%
26,000,000 Forsyth Pollution Control (Puget Sound Power
and Light Company), 6.800%, 3/01/22 3/02 at 102 Aaa 28,010,320
- ----------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.2%
3,340,000 Nebraska Investment Finance Authority, Single
Family Housing, Alternative Minimum Tax,
8.125%, 8/15/38 8/98 at 102 Aaa 3,484,088
- ----------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.3%
5,725,000 Nevada Housing Division, 6.700%, 10/01/17 4/04 at 102 Aa 5,904,422
4,415,000 Nevada Housing Division, Alternative Minimum
Tax, 6.950%, 10/01/26 4/04 at 102 Aa 4,551,777
29,775,000 Clarke County Industrial Development Authority
(Nevada Power Company Project), Alternative
Minimum Tax, 7.800%, 6/01/20 6/00 at 102 Aaa 32,685,506
11,000,000 Clark County (Las Vegas-McCarran International
Airport), 6.000%, 7/01/22 7/02 at 102 Aaa 10,806,620
5,320,000 Clark County (Las Vegas-McCarran International
Airport), Alternative Minimum Tax,
5.750%, 7/01/23 7/05 at 102 Aaa 5,016,813
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW HAMPSHIRE - 0.3%
$ 4,950,000 New Hampshire Higher Educational and Health
Facilities Authority (Lakes Region Hospital
Association), 5.750%, 1/01/11 1/03 at 102 Aaa $ 4,949,555
- ----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.5%
3,600,000 New Jersey Turnpike Authority, 10.375%, 1/01/03 No Opt. Call AAA 4,314,888
5,000,000 Mercer County Improvement Authority, Solid Waste,
Alternative Minimum Tax, 6.700%, 4/01/13 4/02 at 102 Aaa 5,062,000
- ----------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 3.8%
NewYork State Energy Research and Development Authority,
Electric Facilities (Consolidated Edison Company),
Alternative Minimum Tax:
18,220,000 7.250%, 11/01/24 11/98 at 101 Aaa 19,336,522
7,000,000 7.500%, 7/01/25 7/99 at 101 Aaa 7,552,370
3,000,000 New York State Mortgage Agency, Homeowner
Mortgage, Alternative Minimum Tax,
7.800%, 10/01/20 10/99 at 102 Aa 3,158,580
Dormitory Authority of the State of New York (City
University):
3,000,000 6.250%, 7/01/19 7/04 at 100 Aaa 3,056,280
6,400,000 6.750%, 7/01/24 7/04 at 102 Aaa 6,894,656
4,150,000 Dormitory Authority of the State of New York (Ellis
Hospital), 5.600%, 8/01/25 8/05 at 102 Aaa 3,881,412
8,265,000 New York City General Obligation, 6.250%, 8/01/10
(Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 9,046,456
15,600,000 Port Authority of New York and New Jersey,
Alternative Minimum Tax, 6.650%, 1/15/23 1/05 at 101 Aaa 16,301,220
- ----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.8%
45,000,000 Charlotte Convention Facility, Certificates of
Participation, 6.750%, 12/01/21 (Pre-refunded
to 12/01/01) 12/01 at 102 Aaa 50,378,850
- ----------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.1%
Ohio Air Quality Development Authority (JMG
Funding Limited Partnership Project), Alternative
Minimum Tax:
13,750,000 6.375%, 1/01/29 10/04 at 102 Aaa 14,128,263
8,000,000 6.375%, 4/01/29 10/04 at 102 Aaa 8,220,080
10,000,000 Ohio Housing Finance Agency, Residential Housing,
Alternative Minimum Tax, 6.625%, 3/01/26 3/05 at 102 AAA 10,165,000
12,550,000 Cleveland Waterworks, 6.500%, 1/01/21
(Pre-refunded to 1/01/02) 1/02 at 102 Aaa 13,811,777
9,000,000 Lucas County (St. Vincent Medical Center),
6.625%, 8/15/22 (Pre-refunded to 8/15/02) 8/02 at 102 Aaa 9,850,860
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OKLAHOMA - 3.1%
$ 1,120,000 Oklahoma Housing Finance Agency, Single Family,
Housing, 7.150%, 3/01/07 3/01 at 102 Aaa $ 1,180,211
45,580,000 Oklahoma Housing Finance Agency, Single Family
Housing (GNMA), Alternative Minimum Tax,
7.997%, 8/01/18 No Opt. Call AAA 48,637,734
3,360,000 Norman Regional Hospital Authority,
6.900%, 9/01/21 9/01 at 102 Aaa 3,595,133
1,605,000 Tulsa County Home Finance Authority (GNMA),
Alternative Minimum Tax, 7.100%, 6/01/22 12/01 at 102 AAA 1,668,927
- ----------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.3%
5,500,000 Oregon State Housing and Community Services
Department, Single Family Housing, Alternative
Minimum Tax, 6.450%, 7/01/26 7/05 at 102 Aa 5,604,610
- ----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 6.0%
7,000,000 Commonwealth of Pennsylvania (Harristown
Development Corporation), Certificates of
Participation, 6.250%, 5/01/16 11/01 at 102 Aaa 7,131,950
8,200,000 Pennsylvania Higher Educational Facilities Authority
(Temple University), 5.750%, 4/01/31 4/01 at 100 Aaa 7,860,848
14,700,000 Allegheny County (Greater Pittsburgh International
Airport), Alternative MinimumTax,
6.625%, 1/01/22 1/02 at 102 Aaa 15,124,830
7,000,000 Beaver County Industrial Development Authority,
Pollution Control (Penn Power-Mansfield Project),
7.150%, 9/01/21 9/01 at 102 Aaa 7,739,900
24,800,000 Butler County Hospital Authority (North Hills
Passavant Hospital), 7.000%, 6/01/22 6/01 at 102 Aaa 26,892,128
5,000,000 Delaware County Industrial Development Authority
(Philadelphia Electric Project), 7.375%, 4/01/21 4/01 at 102 Baa1 5,331,150
5,000,000 Delaware County Industrial Development Authority,
Pollution Control (Philadelphia Electric Project),
7.375%, 4/01/21 4/01 at 102 Aaa 5,561,400
10,000,000 Harrisburg Authority, 6.625%, 6/01/13 6/01 at 101 Aaa 10,771,100
7,120,000 Lehigh County, General Purpose Authority (Lehigh
Valley Hospital), 6.250%, 7/01/22 7/04 at 102 Aaa 7,288,673
8,950,000 Montgomery County Industrial Development
Authority, Pollution Control (Philadelphia Electric
Company), 6.625%, 6/01/22 6/02 at 102 Aaa 9,667,880
5,500,000 Pittsburgh Water and Sewer Authority,
5.700%, 9/01/20 9/05 at 100 Aaa 5,306,785
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
RHODE ISLAND - 4.2%
Rhode Island Depositors Economic Protection
Corporation, Special Obligation:
$ 5,140,000 7.100%, 8/01/18 (Pre-refunded to 8/01/01) 8/01 at 102 Aaa $ 5,790,107
20,475,000 5.250%, 8/01/21 (Pre-refunded to 2/01/11) 2/11 at 100 Aaa 19,809,972
6,000,000 Rhode Island Port Authority and Economic
Development Corporation, Airport System,
Alternative Minimum Tax, 5.250%, 7/01/15 7/03 at 102 Aaa 5,387,040
38,650,000 Rhode Island Convention Center Authority,
6.700%, 5/15/20 (Pre-refunded to 5/15/01) 5/01 at 102 Aaa 42,751,538
2,195,000 Providence Housing Development Corporation,
FHA-Insured (Barbara Jordan Apartments),
6.750%, 7/01/25 7/04 at 102 Aaa 2,283,129
- ----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.9%
South Carolina Jobs-Economic Development
Authority (Oconee Memorial Hospital):
3,000,000 6.150%, 3/01/15 3/05 at 102 AAA 3,026,850
1,775,000 6.150%, 3/01/25 3/05 at 102 AAA 1,776,899
3,275,000 Lexington County Health Service District,
6.750%, 10/01/18 10/01 at 102 Aaa 3,481,522
22,000,000 Piedmont Municipal Power Agency, 0.000%, 1/01/13 No Opt. Call Aaa 8,119,320
- ----------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.4%
4,280,000 South Dakota Health and Educational Facilities
Authority (Rapid City Regional Hospital),
7.000%, 9/01/14 9/99 at 102 Aaa 4,588,288
2,800,000 South Dakota Health and Educational Facilities
Authority (McKennan Hospital), 7.250%, 7/01/15 7/00 at 102 Aaa 3,051,552
- ----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.4%
7,500,000 Metropolitan Nashville Airport Authority, Airport
Improvement, 6.600%, 7/01/15 7/01 at 102 Aaa 7,998,675
- ----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 2.3%
9,500,000 Coastal Bend Health Facilities Corporation (Incarnate
Word Health Services), 6.000%, 11/15/22 11/02 at 102 Aaa 9,534,295
2,300,000 East Texas Housing Finance Corporation, Single Family
Housing, Alternative Minimum Tax, 7.750%, 6/01/17 6/00 at 103 AAA 2,402,419
Harris County Toll Road, Senior Lien:
9,000,000 0.000%, 8/15/18 (Pre-refunded to 8/15/09) 8/09 at 53 27/32 Aaa 2,325,420
39,000,000 0.000%, 8/15/19 (Pre-refunded to 8/15/09) 8/09 at 50 1/4 Aaa 9,406,800
7,280,000 0.000%, 8/15/20 (Pre-refunded to 8/15/09) 8/09 at 46 29/32 Aaa 1,618,126
5,085,000 0.000%, 8/15/21 (Pre-refunded to 8/15/09) 8/09 at 43 25/32 Aaa 1,055,087
15,000,000 Houston Water and Sewer System, Junior Lien,
6.375%, 12/01/17 12/01 at 102 Aaa 15,508,350
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
UTAH - 1.1%
$ 6,900,000 Utah Housing Finance Agency, Multi-Family Housing,
7.400%, 7/01/24 1/02 at 102 AA $ 7,286,537
5,440,000 Utah Housing Finance Agency, Alternative Minimum
Tax, 6.750%, 7/01/27 7/04 at 102 Aaa 5,563,760
6,250,000 Intermountain Power Agency, 7.000%, 7/01/15 7/97 at 102 Aaa 6,539,437
- ----------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.6%
11,000,000 Loudoun County Industrial Development Authority
(Loudoun Hospital Centre), 5.800%, 6/01/20 6/05 at 102 Aaa 10,741,500
- ----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 4.6%
19,750,000 Washington Health Care Facilities Authority (Group
Health Cooperative of Puget Sound),
7.200%, 12/01/15 12/99 at 102 Aaa 21,500,244
12,500,000 Washington Health Care Facilities Authority
(Yakima Valley Memorial Hospital),
5.250%, 12/01/20 12/06 at 102 Aaa 11,061,000
5,000,000 Washington Public Power Supply System, Nuclear
Project No. 1, 6.250%, 7/01/17 7/02 at 102 Aaa 5,093,800
8,500,000 Washington Public Power Supply System, Nuclear
Project No. 3, 5.600%, 7/01/17 7/03 at 102 Aaa 8,021,790
2,515,000 Douglas County Public Utility District No. 1
(Wells Hydroelectric), Alternative Minimum Tax,
7.800%, 9/01/18 9/00 at 102 A+ 2,771,353
4,500,000 King County Public Hospital District No. 1 (Valley
Medical Center), 7.250%, 9/01/15 9/00 at 102 Aaa 4,906,350
24,675,000 Municipality of Metropolitan Seattle, Limited Sales
Tax, General Obligation, 6.625%, 1/01/17 1/97 at 102 Aa 25,324,445
4,250,000 Snohomish County Public Utility District No. 1,
6.650%, 1/01/16 No Opt. Call Aaa 4,565,520
- ----------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.1%
5,050,000 West Virginia University Dormitory System,
6.750%, 5/01/17 11/02 at 100 Aaa 5,407,590
4,100,000 West Virginia Water Development Authority,
7.000%, 11/01/25 11/01 at 102 Aaa 4,428,122
10,000,000 Harrison County Commission Solid Waste Disposal
(West PennPower Company), Alternative
Minimum Tax, 6.300%, 5/01/23 5/03 at 102 A1 10,036,100
- ----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.4%
10,000,000 Wisconsin Health and Educational Facilities
Authority (Marshfield Clinic), 7.250%, 8/01/15 8/00 at 102 Aaa 10,850,900
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WISCONSIN (CONTINUED)
Wisconsin Health and Educational Facilities
Authority (St. Luke's Medical Center):
$ 10,000,000 7.400%, 8/15/19 (Pre-refunded to 8/15/99) 8/99 at 102 Aaa $ 11,067,700
8,150,000 7.100%, 8/15/19 8/01 at 102 Aaa 8,865,080
17,710,000 Wisconsin Health and Educational Facilities
Authority (Novus Health Group), 6.750%, 12/15/20 12/01 at 102 Aaa 18,627,731
Wisconsin Health and Educational Facilities
Authority (Waukesha Memorial Hospital):
3,585,000 7.250%, 8/15/19 (Pre-refunded to 8/15/00) 8/00 at 102 Aaa 4,013,550
215,000 7.250%, 8/15/19 8/00 at 102 Aaa 232,805
8,270,000 Wisconsin Housing and Economic Development
Authority, 6.850%, 11/01/12 11/02 at 102 Aaa 8,665,140
- ----------------------------------------------------------------------------------------------------------------------------------
$1,849,125,000 Total Investments - (cost $1,681,599,578) - 98.1% 1,771,958,508
- ----------------------------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.4%
$ 2,000,000 California Pollution Control Finance Authority (Shell
Oil Company), Variable Rate Demand Bonds,
3.500%, 10/01/11+ VMIG-1 2,000,000
1,000,000 Jackson County Pollution Control (Chevron USA,
Inc.), Series 1993, Variable Rate Demand Bonds,
4.000%, 6/01/23+ P-1 1,000,000
2,000,000 Ohio Air Quality Development Authority (The
Cincinnati Gas and Electric Company), Variable
Rate Demand Bonds, 4.100%, 9/01/30+ VMIG-1 2,000,000
1,600,000 Rockport Pollution Control (AEP Generating
Company), Variable Rate Demand Bonds,
4.100%, 7/01/25+ A-1 1,600,000
- ----------------------------------------------------------------------------------------------------------------------------------
$ 6,600,000 Total Temporary Investments - 0.4% 6,600,000
- ----------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 27,120,784
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,805,679,292
- ----------------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 178 $1,603,841,898 90%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 18 130,707,458 7
PORTFOLIO OF A+ A1 4 32,078,002 2
INVESTMENTS BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 1 5,331,150 1
(EXCLUDING
TEMPORARY
INVESTMENTS):
- -------------------------------------------------------------------------------------------------------------------
TOTAL 201 $1,771,958,508 100%
<FN>
All of the bonds in the portfolio, excluding temporary investments in
short-term municipal securities, are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by
an escrow or trust containing sufficient U.S. Government or U.S. Government
agency securities, any of which ensure the timely payment of principal and
interest.
* Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions at
varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based
on market conditions or a specified market index.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN PREMIER INSURED MUNICIPAL INCOME FUND, INC. (NIF)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALABAMA - 1.3%
Montgomery BMC Special Care Facilities Financing
Authority (Baptist Medical Center):
$ 3,000,000 6.700%, 12/01/10 12/02 at 102 Aaa $ 3,279,420
2,250,000 5.750%, 1/01/22 1/02 at 100 AAA 2,149,695
- ----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 17.4%
Kern County Housing Authority (GNMA),
Alternative Minimum Tax:
1,090,000 7.150%, 12/30/24 No Opt.Call AAA 1,196,776
595,000 7.450%, 6/30/25 No Opt. Call AAA 644,248
6,045,000 Laverne-Grand Terrace Housing Finance Agency,
Single Family Housing, 10.250%, 7/01/17 No Opt. Call Aaa 8,983,777
5,840,000 Lancaster Redevelopment Agency, Tax Allocation,
6.100%, 8/01/19 8/01 at 102 Aaa 5,898,926
5,040,000 Northern California Power Agency, 10.000%, 7/01/04 No Opt. Call Aaa 6,690,499
5,000,000 Ontario Redevelopment Authority, 7.400%, 8/01/25 No Opt. Call Aaa 6,107,350
2,340,000 Pomona Public Financing Authority (Water Treatment
Project), 6.100%, 7/01/17 7/02 at 102 Aaa 2,361,458
8,880,000 Pomona Single Family Housing (GNMA and FNMA),
7.500%, 8/01/23 No Opt. Call Aaa 10,391,998
10,305,000 San Bernardino Single Family Housing, (GNMA),
7.500%, 5/01/23 No Opt. Call Aaa 12,132,489
14,755,000 San Bernardino County, Single Family Housing,
Alternative Minimum Tax, 8.300%, 9/01/14 No Opt. Call Aaa 18,298,708
2,000,000 Santa Barbara Water System, Certificates of
Participation, 6.700%, 4/01/27 4/02 at 102 Aaa 2,140,900
- ----------------------------------------------------------------------------------------------------------------------------------
COLORADO - 0.3%
1,225,000 Summit County School District RE-1, General
Obligation, 6.700%, 12/01/14 (Pre-refunded to
12/01/04) 12/04 at 100 Aaa 1,373,495
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.8%
3,000,000 District of Columbia (National Rehabilitation
Hospital), 7.125%, 11/01/19 (Pre-refunded to
11/01/99) 11/99 at 102 Aaa 3,307,530
- ----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.8%
7,000,000 Polk County Industrial Development Authority
(Winter Haven Hospital), 6.250%, 9/01/15 9/02 at 103 Aaa 7,211,260
4,200,000 Sarasota County School Board Financing Corporation,
7.250%, 7/01/10 (Pre-refunded to 7/01/00) 7/00 at 101 Aaa 4,666,620
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GEORGIA - 4.5%
$ 3,160,000 Georgia Municipal Electric Authority,
7.800%, 1/01/20 1/98 at 102 Aaa $ 3,373,964
Burke County Development Authority, Pollution
Control (Oglethorpe Power Corporation):
3,555,000 7.800%, 1/01/08 1/03 at 103 Aaa 4,118,254
10,000,000 8.000%, 1/01/15 1/03 at 103 Aaa 11,714,000
- ----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 11.8%
6,635,000 Illinois Health Facilities Authority (Memorial Center
of Springfield), 6.500%, 10/01/16 10/00 at 102 Aaa 6,888,789
2,210,000 City of Carbondale (Southern Illinois Hospital),
6.875%, 3/01/15 3/97 at 102 Aaa 2,288,588
10,000,000 Chicago General Obligation (Central Public Library
Project), 6.850%, 1/01/17 (Pre-refunded to 7/01/02) 7/02 at 101 1/2 Aaa 11,215,700
8,200,000 Chicago Board of Education, General Obligation,
Lease Certificates, 6.250%, 1/01/15 No Opt. Call Aaa 8,516,602
2,600,000 Cook County General Obligation, 6.250%, 11/01/21 11/01 at 102 Aaa 2,628,652
10,150,000 Onterie Center Housing Finance Corporation,
FHA-Insured, 7.050%, 7/01/27 7/02 at 102 Aaa 10,676,785
3,225,000 Regional Transportation Authority, 9.000%, 6/01/09 No Opt. Call Aaa 4,302,344
4,000,000 St. Clair County Public Building Commission,
Alternative Minimum Tax, 6.350%, 12/01/09 12/02 at 102 Aaa 4,209,000
- ----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.2%
2,500,000 Indiana Bond Bank, 9.000%, 8/01/09 (Pre-refunded
to 2/01/99) 2/99 at 101 1/2 Aaa 2,872,325
5,375,000 Indiana Health Facilities Financing Authority
(Community Hospitals Project), 6.400%, 5/01/12 5/02 at 102 Aaa 5,566,995
2,000,000 Fremont Middle School Building Corporation,
6.750%, 3/15/13 (Pre-refunded to 3/15/02) 3/02 at 101 Aaa 2,218,560
7,000,000 Southwest Allen Multi-School Building Corporation,
6.375%, 1/15/09 1/02 at 101 Aaa 7,325,080
- ----------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.5%
6,500,000 Daviess County (Owensboro-Daviess County
Hospital), 6.250%, 8/01/22 8/02 at 102 Aaa 6,631,365
- ----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.2%
Louisiana Public Facilities Authority (Our Lady of
Lourdes Regional Medical Center):
5,000,000 6.375%, 2/01/12 2/02 at 102 Aaa 5,206,800
4,000,000 6.450%, 2/01/22 2/02 at 102 Aaa 4,152,400
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MARYLAND - 0.8%
$ 4,000,000 Maryland Health and Higher Educational Facilities
Authority (Francis Scott Key Medical Center),
5.000%, 7/01/23 7/03 at 102 Aaa $ 3,493,280
- ----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.0%
5,360,000 Massachusetts Health and Educational Facilities
Authority (New England Medical Center),
6.625%, 7/01/25 7/02 at 102 Aaa 5,613,796
3,000,000 Framingham Housing Authority, GNMA (Beaver
Terrace Apartments), 6.650%, 2/20/32 8/01 at 102 AAA 3,074,460
- ----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.4%
2,000,000 Paw Paw Public Schools General Obligation,
5.625%, 5/01/25 5/05 at 100 Aaa 1,930,760
- ----------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.5%
2,000,000 Minnesota Housing Finance Authority,
5.950%, 2/01/18 2/05 at 102 Aaa 1,990,120
- ----------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.0%
4,060,000 Mississippi Home Corporation, 9.250%, 3/01/12 9/00 at 102 Aaa 4,409,038
- ----------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.9%
7,495,000 Jefferson County Industrial Development Authority
(Richardson Road Apartments Project),
11.000%, 12/15/15 (Pre-refunded to 8/15/07)
(Mandatory put 8/15/07) 8/07 at 100 AAA 10,369,033
2,250,000 University City Industrial DevelopmentAuthority,
GNMA (Canterbury Apartments),
6.000%, 12/20/30 12/05 at 102 AAA 2,217,510
- ----------------------------------------------------------------------------------------------------------------------------------
MONTANA - 3.2%
13,000,000 Forsyth Pollution Control (Puget Sound Power and
Light Company), 6.800%, 3/01/22 3/02 at 102 Aaa 14,005,160
- ----------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.5%
2,060,000 Nebraska Investment Finance Authority, Single
Family Housing, Alternative Minimum Tax,
8.125%, 8/15/38 8/98 at 102 Aaa 2,148,868
- ----------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.6%
6,000,000 Humboldt County Pollution Control (Sierra Pacific
Power Company), 6.550%, 10/01/13 10/02 at 102 Aaa 6,422,160
4,500,000 Washoe County Gas and Water Facilities (Sierra
Pacific Power Company), 6.300%, 12/01/14 7/02 at 102 Aaa 4,718,610
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK - 5.7%
$ 7,645,000 Metropolitan Transportation Authority, Transit
Facilities, 9.100%, 7/01/05 No Opt. Call Aaa $ 9,797,373
New York City General Obligation:
1,425,000 7.875%, 8/01/00 No Opt. Call Aaa 1,604,137
6,665,000 6.625%, 8/01/14 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 7,433,075
335,000 6.625%, 8/01/14 8/02 at 101 1/2 Aaa 356,882
4,950,000 6.625%, 8/01/15 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 5,520,438
50,000 6.625%, 8/01/15 8/02 at 101 1/2 Aaa 53,130
- ----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.4%
2,000,000 North Carolina Medical Care Commission (Alamance
Health Services, Inc.), 5.500%, 8/15/24 8/03 at 102 Aaa 1,850,380
- ----------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 4.1%
9,425,000 Oklahoma Housing FInance Agency (GNMA),
Single Family Housing, Alternative Minimum
Tax, 7.997%, 8/01/18 No Opt. Call AAA 10,068,351
4,285,000 Tulsa Airports Improvement Trust (Tulsa International
Airport), Alternative Minimum Tax,
7.700%, 6/01/09 6/97 at 102 1/2 Aaa 4,518,104
3,000,000 Tulsa Industrial Authority, GNMA (Country Club
of Woodland), 6.250%, 11/01/27 11/05 at 103 Aaa 3,025,890
- ----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 8.1%
13,480,000 Allegheny County, Greater Pittsburgh International
Airport, Alternative Minimum Tax, 8.250%, 1/01/16 1/98 at 102 Aaa 14,396,505
19,140,000 Montgomery County Industrial Development Authority,
Pollution Control (Philadelphia Electric Company),
6.625%, 6/01/22 6/02 at 102 Aaa 20,675,219
- ----------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 4.8%
12,750,000 Rhode Island Depositors Economic Protection
Corporation, Special Obligation, 6.625%, 8/01/19
(Pre-refunded to 8/01/02) 8/02 at 102 Aaa 14,215,485
4,000,000 Rhode Island General Obligation, 7.000%, 6/15/05 No Opt. Call Aaa 4,553,400
1,900,000 Rhode Island Convention Center Authority,
6.700%, 5/15/20 (Pre-refunded to 5/15/01) 5/01 at 102 Aaa 2,101,628
- ----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.4%
9,450,000 South Carolina Public Service Authority (Santee
Cooper), 6.500%, 7/01/24 (Pre-refunded to
7/01/02) 7/02 at 102 Aaa 10,458,126
- ----------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.5%
2,100,000 South Dakota Health and Educational Facilities
Authority (Vocational Education Program),
5.700%, 8/01/23 8/03 at 102 Aaa 1,998,192
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TEXAS - 7.5%
$ 2,000,000 Texas Southern University , 5.750%, 8/01/18 8/03 at 101 Aaa $ 1,944,800
5,000,000 Brazos River Authority, Pollution Control (Texas
Utilities Electric Company), Alternative
Minimum Tax, 6.050%, 4/01/25 4/03 at 102 Aaa 4,962,550
2,450,000 Corpus Christi Housing Finance Corporation,
Single Family Housing, 7.700%, 7/01/11 7/01 at 103 Aaa 2,626,572
2,070,000 El Paso Property Finance Authority, Single Family
Housing, (GNMA), Alternative Minimum Tax,
8.700%, 12/01/18 6/02 at 103 Aaa 2,197,574
Harris County Toll Road, Senior Lien:
8,400,000 6.625%, 8/15/17 (Pre-refunded to 8/15/97) 8/97 at 102 Aaa 8,858,724
1,600,000 6.625%, 8/15/17 8/97 at 102 Aaa 1,676,512
5,210,000 6.500%, 8/15/17 (Pre-refunded to 8/15/02) 8/02 at 102 Aaa 5,773,462
940,000 6.500%, 8/15/17 8/02 at 102 Aaa 989,989
3,000,000 Rio Grande Health Facilities Development
Corporation (Valley Baptist Medical Center),
6.375%, 8/01/22 8/02 at 102 Aaa 3,124,500
- ----------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.4%
1,490,000 Utah Board of Regents (Weber State University),
6.250%, 4/01/10 4/02 at 100 Aaa 1,538,514
- ----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 2.3%
1,085,000 North Franklin School District No. J51-162,
General Obligation, 6.700%, 12/01/10 12/02 at 100 Aaa 1,168,773
Puyallup School District No. 3, General Obligation:
2,000,000 6.650%, 12/01/07 (Pre-refunded to 12/01/02) 12/02 at 100 Aaa 2,212,300
4,750,000 6.700%, 12/01/09 (Pre-refunded to 12/01/02) 12/02 at 100 Aaa 5,268,604
1,325,000 Richland Electric System, 6.700%, 11/01/11 11/02 at 100 Aaa 1,426,295
- ----------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.5%
6,000,000 Mason County Pollution Control (Appalachian
Power Company), 6.850%, 6/01/22 6/02 at 102 Aaa 6,482,220
- ----------------------------------------------------------------------------------------------------------------------------------
$384,320,000 Total Investments - (cost $398,910,986) - 98.4% 424,011,851
- ----------------------------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.1%
$ 300,000 California Statewide Communities Development
Authority (St. Joseph Health System), Certificates
of Participation, Variable Rate Demand Bonds,
3.450%, 7/01/24+ VMIG-1 300,000
- ----------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 6,533,128
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $430,844,979
- ----------------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 79 $424,011,851 100%
RATINGS**
PORTFOLIO OF
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
TOTAL 79 $424,011,851 100%
<FN>
All of the bonds in the portfolio, excluding temporary investments in
short-term municipal securities, are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by
an escrow or trust containing sufficient U.S. Government or U.S. Government
agency securities, any of which ensure the timely payment of principal and
interest.
* Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions at
varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based
on market conditions or a specified market index.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND, INC. (NPE)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALASKA - 2.3% Anchorage General Obligations:
$ 2,020,000 5.900%, 2/01/06 No Opt. Call Aaa $ 2,133,080
3,000,000 6.250%, 6/01/23 6/99 at 100 Aaa 3,020,220
Anchorage Port and Terminal Facilities:
1,250,000 6.000%, 2/01/05 No Opt. Call Aaa 1,332,600
830,000 6.000%, 2/01/06 No Opt. Call Aaa 882,498
- ----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 7.9%
6,590,000 California Housing Finance Agency, Multi-Unit
Rental, Alternative Minimum Tax, 6.625%, 2/01/24 2/03 at 102 A1 6,669,739
3,000,000 M-S-R Public Power Agency, San Juan Project,
6.000%, 7/01/20 7/03 at 102 Aaa 3,004,950
7,000,000 Palmdale Community Redevelopment Agency,
8.000%, 4/01/16 No Opt. Call Aaa 8,567,370
San Leandro Housing Finance Corporation (Ashland
Village Apartments):
1,965,000 6.550%, 1/01/12 1/02 at 102 Aaa 2,034,109
5,100,000 6.650%, 1/01/25 1/02 at 102 Aaa 5,247,237
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 4.4%
5,000,000 District of Columbia (Children's Hospital),
6.250%, 7/15/19 7/02 at 102 Aaa 5,052,100
3,775,000 District of Columbia Housing Finance Agency,
Single Family Housing, Alternative Minimum Tax,
6.350%, 12/01/24 6/03 at 102 AAA 3,785,042
5,250,000 District of Columbia (The Catholic University of
America), 6.450%, 10/01/23 10/03 at 102 AAA 5,347,860
- ----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 0.7%
2,500,000 Dade County Aviation, 5.750%, 10/01/26 10/06 at 102 Aaa 2,411,250
- ----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 16.9%
8,000,000 Illinois Development Finance Authority, Pollution
Control (Illinois Power Company),
8.300%, 4/01/17 4/98 at 102 Aaa 8,667,840
3,635,000 Illinois Development Finance Authority (Indian
Prairie Community-Unit School District No. 204),
7.750%, 12/30/03 No Opt. Call Aaa 4,268,544
Illinois Health Facilities Authority (Lutheran
General Health System):
4,355,000 6.125%, 4/01/12 4/03 at 102 Aaa 4,432,519
5,000,000 6.250%, 4/01/18 4/03 at 102 Aaa 5,038,750
1,770,000 Illinois Health Facilities Authority (Elmhurst
Memorial Hospital), 6.625%, 1/01/22 1/02 at 102 Aaa 1,836,464
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
Illinois State Toll Highway Authority:
$ 4,000,000 6.200%, 1/01/16 1/03 at 102 Aaa $ 4,078,760
4,250,000 5.750%, 1/01/17 1/03 at 102 Aaa 4,073,753
2,750,000 Chicago Midway Airport, Alternative Minimum Tax,
6.250%, 1/01/14 1/04 at 102 Aaa 2,778,518
9,000,000 Chicago-O'Hare International Airport, International
Terminal, 6.750%, 1/01/18 1/02 at 102 Aaa 9,378,270
3,000,000 Cook County Community College, District No. 508,
8,750%, 1/01/06 No Opt. Call Aaa 3,764,460
6,500,000 Metropolitan Pier and Exposition Authority
(McCormick Place Expansion Project),
6.500%, 6/15/22 6/03 at 102 Aaa 6,797,245
- ----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.0%
2,220,000 Indiana Municipal Power Agency, Power Supply
System, 6.125%, 1/01/19 1/03 at 102 Aaa 2,245,042
1,000,000 Fort Wayne South Side School Building Corporation,
6.125%, 1/15/12 1/04 at 102 Aaa 1,031,630
- ----------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.2%
515,000 Kansas Development Finance Authority,
5.700%, 6/01/11 6/03 at 102 Aaa 517,688
- ----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.8%
2,500,000 Louisiana Public Facilities Authority (Louisiana
Department of Health and Hospitals Medical
Center), 6.250%, 10/15/10 10/02 at 100 AAA 2,561,825
- ----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.6%
4,800,000 Michigan State Hospital Finance Authority (Henry
Ford Health System), 5.750%, 9/01/17 9/02 at 102 Aaa 4,581,312
10,000,000 Monroe County Pollution Control (Detroit Edison),
Alternative Minimum Tax, 6.550%, 9/01/24 9/03 at 103 Aaa 10,340,800
- ----------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.6%
2,000,000 Minnesota Housing Finance Authority,
5.950%, 2/01/18 2/05 at 102 Aaa 1,990,120
- ----------------------------------------------------------------------------------------------------------------------------------
NEVADA - 5.3%
2,905,000 Clark County General Obligation (Limited Tax),
10.000%, 6/01/01 No Opt. Call Aaa 3,591,916
5,000,000 Clark County (Nevada Power Company), Alternative
Minimum Tax, 6.700%, 6/01/22 6/02 at 102 Aaa 5,180,850
7,295,000 Clark County School District, General Obligation,
7.250%, 6/15/03 No Opt. Call Aaa 8,317,394
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW JERSEY - 18.1%
$ 15,495,000 New Jersey Economic Development Authority
(Elizabethtown Gas Company), Alternative
Minimum Tax, 6.750%, 10/01/21 10/96 at 102 Aaa $ 15,943,425
5,000,000 New Jersey Economic Development Authority
(Hackensack Water Company), 7.000%, 1/01/19 1/97 at 102 Aaa 5,181,700
New Jersey Economic Development Authority:
750,000 7.000%, 7/01/03 No Opt. Call Aaa 846,360
4,000,000 7.000%, 7/01/04 No Opt. Call Aaa 4,552,360
5,000,000 New Jersey Housing and Mortgage Finance Agency,
5.350%, 10/01/15 10/03 at 102 Aaa 4,722,950
5,750,000 New Jersey Housing and Mortgage Finance Agency,
Alternative Minimum Tax, 6.300%, 10/01/23 10/05 at 101 1/2 Aaa 5,763,570
15,000,000 New Jersey Transportation Trust Fund Authority,
6.500%, 6/15/05 No Opt. Call Aaa 16,579,350
New Jersey Turnpike Authority:
3,000,000 6.500%, 1/01/08 No Opt. Call Aaa 3,311,430
2,000,000 6.500%, 1/01/16 No Opt. Call Aaa 2,181,340
- ----------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 5.9%
Metropolitan Transportation Authority, Transit
Facilities:
5,000,000 6.300%, 7/01/06 No Opt. Call Aaa 5,494,000
4,985,000 8.000%, 7/01/07 No Opt. Call Aaa 6,177,412
4,000,000 New York City General Obligation, 8.000%, 8/01/05 No Opt. Call Aaa 4,858,240
2,825,000 Port Authority of New York and New Jersey,
Alternative Minimum Tax, 5.750%, 3/01/16 3/06 at 101 Aaa 2,738,696
- ----------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.7%
5,500,000 Ohio Air Quality Development Authority, Pollution
Control (Cleveland Electric Illuminating Company),
8.000%, 12/01/13 6/02 at 103 Aaa 6,422,900
2,250,000 Hamilton County Sewer System, 5.450%, 12/01/09 No Opt. Call Aaa 2,272,928
- ----------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.7%
8,425,000 McGee Creek Authority Water System,
6.000%, 1/01/23 No Opt. Call Aaa 8,661,911
- ----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 9.6%
2,000,000 Pennsylvania Industrial Development Authority,
7.000%, 1/01/06 No Opt. Call Aaa 2,282,940
7,275,000 Bethlehem Authority Water System, 6.250%, 11/15/21
(Pre-refunded to to 11/15/01) 11/01 at 100 Aaa 7,824,844
8,140,000 Erie County Prison Authority, 6.250%, 11/01/11
(Pre-refunded to 11/01/01) 11/01 at 100 Aaa 8,751,640
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$ 1,000,000 Luzerne County Industrial Development Authority
(Pennsylvania Gas and Water Company Project),
Alternative Minimum Tax, 7.000%, 12/01/17 12/04 at 102 Aaa $ 1,089,940
7,000,000 Philadelphia School District, General Obligation,
5.300%, 7/01/04 No Opt. Call Aaa 7,136,570
4,000,000 University of Pittsburgh, 6.125%, 6/01/21 6/02 at 102 Aaa 4,058,240
- ----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.1%
6,500,000 Piedmont Municipal Power Agency, 6.300%, 1/01/22 1/03 at 102 Aaa 6,689,344
- ----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 5.1%
9,455,000 Texas Veterans Housing, General Obligation,
Alternative Minimum Tax, 6.800%, 12/01/23 12/03 at 102 Aaa 9,797,554
6,690,000 Houston Housing Finance Corporation, Single
Family Housing, 5.950%, 12/01/10 6/03 at 102 Aaa 6,773,826
- ----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 6.2%
6,130,000 Washington Health Care Facilities Authority
(Swedish Hospital Medical Center of Seattle),
6.300%, 11/15/22 11/02 at 102 Aaa 6,224,709
8,100,000 Washington Health Care Facilities Authority
(Virginia Mason), 6.300%, 2/15/17 2/03 at 102 Aaa 8,254,952
5,535,000 Washington Public Power Supply System, Nuclear
Project No. 3, 6.300%, 7/01/18 7/99 at 100 Aaa 5,536,827
- ----------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.1%
3,270,000 Puerto Rico Public Buildings Authority,
6.250%, 7/01/12 No Opt. Call Aaa 3,539,284
- ----------------------------------------------------------------------------------------------------------------------------------
$301,850,000 Total Investments - (cost $311,051,073) - 98.2% 318,630,997
- ----------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 5,872,828
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $324,503,825
- ----------------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 62 $311,961,258 98%
RATINGS** A+ A1 1 6,669,739 2
PORTFOLIO OF
INVESTMENTS:
TOTAL 63 $318,630,997 100%
<FN>
All of the bonds in the portfolio are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by
an escrow or trust containing sufficient U.S. Government or U.S. Government
agency securities, any of which ensure the timely payment of principal and
interest.
* Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions at
varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND 2 (NPX)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALABAMA - 0.6%
$ 2,500,000 Mobile General Obligation, 5.750%, 2/15/16 2/06 at 102 Aaa $ 2,469,225
- ----------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.9%
2,000,000 Alaska International Airport, Alternative Minimum
Tax, 5.500% 10/01/15 10/03 at 102 Aaa 1,859,040
2,000,000 Anchorage General Obligation, 5.600%, 1/01/14 1/04 at 100 Aaa 1,931,340
- ----------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.9%
3,700,000 Glendale Union High School District No. 205,
General Obligation, 5.700%, 7/01/14 7/05 at 101 Aaa 3,676,912
- ----------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.3%
1,500,000 Pulaski County, Special School District, Limited Tax,
5.250%, 2/01/19 2/99 at 100 Aaa 1,360,335
- ----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 10.6%
10,355,000 California General Obligation, 11.000%, 8/01/03 No Opt. Call Aaa 14,189,249
15,325,000 California Pollution Control Finance Authority
(Pacific Gas and Electric Company),
5.850%, 12/01/23 12/03 at 102 A2 14,528,560
3,500,000 Northern California Power Agency Hydroelectric,
5.500%, 7/01/16 7/03 at 102 Aaa 3,322,025
5,000,000 Oakland Pension Financing, 7.600%, 8/01/21 8/98 at 102 Aaa 5,387,700
8,000,000 University of California, 5.000%, 9/01/14 9/03 at 102 Aaa 7,195,040
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 3.4% District of Columbia General
Obligation:
5,000,000 6.500%, 6/01/09 No Opt. Call Aaa 5,533,400
5,000,000 5.500%, 6/01/12 No Opt. Call Aaa 4,793,750
4,030,000 District of Columbia Housing Finance Agency
(Southview Apartments), 6.000%, 1/01/25 7/03 at 102 Aaa 3,943,315
- ----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.1%
5,250,000 Florida Department of General Services, Bond
Finance Division, 4.750%, 7/01/12 7/04 at 101 Aaa 4,645,988
5,000,000 Florida Municipal Power Agency, 6.500%, 10/01/20
(Pre-refunded to 10/01/02) 10/02 at 102 Aaa 5,566,250
9,000,000 Dade County Water and Sewer System,
5.000%, 10/01/13 10/03 at 102 Aaa 8,239,770
3,000,000 Orlando and Orange County Expressway Authority,
5.500%, 7/01/18 7/03 at 102 Aaa 2,857,710
- ----------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.7%
3,000,000 Georgia Municipal Electric Authority,
6.000%, 1/01/22 1/04 at 102 Aaa 3,024,870
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS - 11.0%
$ 4,340,000 Illinois Development Finance Authority (Indian
Prairie Community Unit School District No. 204),
7.750%, 12/30/04 No Opt. Call Aaa $ 5,142,119
1,950,000 Illinois Health Facilities Authority, 6.550%, 6/01/14 No Opt. Call Aaa 2,108,945
4,000,000 Illinois Housing Development Authority,
6.000%, 7/01/18 1/04 at 102 A1 3,941,760
3,000,000 Illinois Sales Tax, 7.000%, 6/15/20 (Pre-refunded
to 6/15/01) 6/01 at 102 AAA 3,358,830
2,500,000 Aurora General Obligation, 5.800%, 1/01/14 (WI) 1/05 at 100 Aaa 2,473,900
1,500,000 Chicago General Obligation, 6.125%, 1/01/16 7/05 at 102 Aaa 1,514,340
1,100,000 Chicago Midway Airport, Alternative Minimum Tax,
6.100%, 1/01/08 1/04 at 102 Aaa 1,138,874
5,660,000 Chicago O'Hare International Airport,
6.375%, 1/01/15 1/05 at 102 Aaa 5,858,723
4,000,000 Chicago Public Building Commission (Board of
Education), 5.750%, 12/01/18 12/03 at 102 Aaa 3,822,240
2,000,000 Chicago Wastewater Transmission, 5.125%, 1/01/20 1/03 at 100 Aaa 1,762, 940
5,825,000 Franklin Park General Obligation, 5.500%, 7/01/13 7/04 at 102 Aaa 5,639,183
4,500,000 Northlake General Obligation Tax, 5.600%, 12/01/14 12/05 at 102 Aaa 4,371,795
5,000,000 Peoria, Moline and Freeport Single Family Housing,
Alternative Minimum Tax, 7.600%, 4/01/27 10/05 at 105 AAA 5,357,350
- -------------------------------------------------------------------------------------------------------------------
INDIANA - 2.2%
9,770,000 Northwest Allen Building Corporation,
5.500%, 6/01/15 6/05 at 102 Aaa 9,341,586
- -------------------------------------------------------------------------------------------------------------------
KANSAS - 1.5%
3,425,000 Olathe/Labette County, Single Family Housing,
Alternative Minimum Tax, 8.100%, 8/01/23 2/05 at 105 Aaa 3,779,625
2,330,000 Sedgwick County and Shawnee County, Single
Family Housing, Alternative Minimum Tax,
8.050%, 5/01/24 11/04 at 105 Aaa 2,578,495
- ----------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.0%
Louisville-Jefferson County Regional Airport
Authority, Alternative Minimum Tax:
1,570,000 5.500%, 7/01/13 7/03 at 102 Aaa 1,494,514
3,000,000 5.500%, 7/01/23 7/03 at 102 Aaa 2,767,890
- ----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.8%
4,105,000 Louisiana Housing Finance Agency, Multi-Family
Housing (GNMA), 6.200%, 6/20/28 12/02 at 103 Aaa 4,093,260
3,750,000 Jefferson Parish Hospital Service District No. 1,
5.250%, 1/01/13 1/04 at 102 Aaa 3,525,450
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MAINE - 0.5%
$ 1,745,000 Maine Turnpike Authority, 7.500%, 7/01/09 No Opt. Call Aaa $ 2,095,274
- ----------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 2.4%
9,770,000 Maryland Transportation Authority (Baltimore/
Washington International Airport), Alternative
Minimum Tax, 6.400%, 7/01/19 7/04 at 102 Aaa 10,153,766
- -------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.9%
1,000,000 Goodrich Area Schools Obligation, 7.650%, 5/01/11 5/05 at 102 Aaa 1,166,840
2,650,000 Imlay City Community Schools General Obligation,
5.400%, 5/01/17 5/06 at 100 Aaa 2,490,126
- -------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.5%
2,000,000 Minnesota Housing Finance Authority,
5.950%, 2/01/18 2/05 at 102 Aaa 1,990,120
- ----------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 4.7%
3,415,000 Missouri Health and Educational Facilities,
6.250%, 2/15/22 2/02 at 102 Aaa 3,480,944
8,000,000 Kansas City Airport, 6.750%, 9/01/09 9/05 at 101 Aaa 8,773,040
5,000,000 Kansas City Land Clearance Redevelopment
Authority, 5.900%, 12/01/18 12/05 at 102 Aaa 4,996,600
1,500,000 St. Charles County Francis Howell School District,
5.200%, 3/01/09 3/06 at 100 Aaa 1,447,860
1,250,000 Sikeston Electric System, 5.000%, 6/01/22 6/06 at 101 Aaa 1,101,850
- ----------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.8%
8,320,000 Clark County School District, General Obligation,
7.250%, 6/15/04 No Opt. Call Aaa 9,565,754
4,000,000 Reno (St. Mary's Regional Medical Center),
5.625%, 5/15/23 5/03 at 102 Aaa 3,732,240
2,490,000 University of Nevada, Community College System,
5.600%, 7/01/13 7/03 at 101 Aaa 2,456,584
- ----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.6%
2,500,000 New Jersey Housing and Mortgage Finance Agency,
Multi-Family Housing 6.000%, 11/01/14 5/05 at 102 Aaa 2,503,975
- ----------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 6.2%
New York State Medical Care Facilities Finance
Agency, FHA-Insured (New York Hospital):
3,000,000 6.750%, 8/15/14 2/05 at 102 Aaa 3,204,780
2,500,000 6.800%, 8/15/24 2/05 at 102 Aaa 2,684,675
3,000,000 New York State Medical Care Facilities Finance
Agency (Mental Health Facilities), 6.000%, 8/15/15 2/05 at 102 Aaa 3,048,510
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$ 3,000,000 New York State Thruway Authority, 6.000%, 4/01/05 No Opt. Call Aaa $ 3,196,950
5,230,000 Dormitory Authority of the State of New York
(Maimonides Medical Center), 5.750%, 8/01/14 (WI) 2/06 at 102 Aaa 5,151,079
4,090,000 Metropolitan Transportation Authority, Commuter
Facilities, 8.000%, 7/01/07 No Opt. Call Aaa 5,068,328
2,500,000 New York City General Obligation, 5.570%, 8/01/10 8/02 at 101 1/2 Aaa 2,530,025
1,070,000 Niagara Falls General Obligation, 7.500%, 3/01/09 No Opt. Call Aaa 1,284,310
- ----------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.8%
8,190,000 Ohio Housing Finance Agency, Single Family
Housing (GNMA), Alternative Minimum Tax,
7.650%, 3/01/29 9/99 at 102 AAA 8,599,664
2,000,000 Cleveland Waterworks System, 6.250%, 1/01/15 1/02 at 102 Aaa 2,053,020
3,000,000 Fairfield City School District, General Obligation,
6.000%, 12/01/20 12/05 at 100 Aaa 3,042,360
6,450,000 Hamilton Electric System, 6.000%, 10/15/23 10/02 at 102 Aaa 6,524,369
- ----------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.5%
6,000,000 Norman Regional Hospital Authority, 6.900%, 9/01/21 9/01 at 102 Aaa 6,419,880
- ----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 7.8%
4,000,000 Cambria County Industrial Development Authority,
Pollution Control (Pennsylvania Electric Company),
5.800%, 11/01/20 11/05 at 102 Aaa 3,895,480
Philadelphia School District General Obligation:
2,680,000 6.250%, 9/01/08 No Opt. Call Aaa 2,909,435
5,600,000 5.500%, 9/01/15 9/05 at 102 Aaa 5,396,272
Philadelphia Water and Wastewater System:
8,400,000 5.750%, 6/15/13 6/03 at 102 Aaa 8,340,612
3,700,000 5.500%, 6/15/14 6/03 at 102 Aaa 3,538,310
10,000,000 5.000%, 6/15/16 6/03 at 100 Aaa 8,887,900
- ----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.5%
2,000,000 Knoxville Community Development Corporation,
Multi-Family Housing (GNMA), 6.200%, 7/20/28 7/03 at 101 AAA 1,994,220
- ----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 1.3%
1,890,000 Texas Veterans Housing, General Obligation,
Alternative Minimum Tax, 6.800%, 12/01/23 12/03 at 102 Aa 1,932,544
2,845,000 Austin Combined Utility System,
11.125%, 11/15/09, (Pre-refunded to 11/15/99) 11/99 at 102 Aaa 3,444,100
- ----------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.9%
3,600,000 Utah State Board of Regents, Student Loan,
Alternative Minimum Tax, 5.900%, 11/01/13 11/03 at 102 Aaa 3,551,724
- ----------------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
VIRGINIA - 0.3%
$ 1,400,000 Pittsylvania County General Obligation,
5.500%, 2/01/16 2/06 at 102 Aaa $ 1,354,850
- ----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 7.9%
Washington Public Power Supply System, Nuclear
Project No. 1:
3,750,000 5.600%, 7/01/15 7/03 at 102 Aaa 3,574,012
11,000,000 5.700%, 7/01/17 7/03 at 102 Aaa 10,587,170
6,295,000 Washington Public Power Supply System, Nuclear
Project No. 3, 5.600%, 7/01/17 7/03 at 102 Aaa 5,940,842
4,000,000 Snohomish County Public Utility District No. 1,
Electric System, 5.800%, 1/01/24 1/04 at 102 A1 3,761,560
4,340,000 Tacoma Department of Public Utilities, Sewer System,
8.000%, 12/01/07 No Opt. Call Aaa 5,355,212
2,500,000 Tacoma Department of Public Utilities,
6.375%, 12/01/15 12/05 at 100 Aaa 2,609,074
1,465,000 Yakima County School District No. 7, General
Obligation, 6.250%, 12/01/07 No Opt. Call Aaa 1,573,600
- ----------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 6.8%
8,500,000 Mason County Pollution Control (Ohio Power
Company), 5.450%, 12/01/16 12/03 at 102 Aaa 8,003,684
20,000,000 Pleasants County Pollution Control (Monongahela
Power Company), 6.150%, 5/01/15 5/05 at 102 Aaa 20,457,400
- ----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 7.1%
2,000,000 Wisconsin Health and Educational Facilities
Authority (Children's Hospital of Wisconsin),
6.500%, 8/15/10 8/02 at 102 Aaa 2,117,200
1,750,000 Wisconsin Health and Educational Facilities
Authority (Sisters of the Sorrowful Mother
Ministry), 5.400%, 8/15/13 8/03 at 102 Aaa 1,653,977
5,000,000 Wisconsin Health and Educational Facilities
Authority, 6.125%, 8/15/13 8/05 at 102 Aaa 5,132,750
14,500,000 Wisconsin Housing and Economic Development
Authority, 5.800%, 11/01/13 12/03 at 102 A1 14,142,430
6,000,000 Superior Limited Obligation (Detroit Edison
Company), 6.900%, 8/01/21 No Opt. Call Aaa 6,846,780
- ----------------------------------------------------------------------------------------------------------------------------------
$407,370,000 Total Investments - (cost $415,982,734) - 98.5% 414,360,359
- ----------------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.3%
$ 1,000,000 Missouri Health and Educational Facilities Authority
(Washington University), Variable Rate Demand
Bonds, 4.100%, 3/01/17+ VMIG-1 $ 1,000,000
500,000 Missouri Health and Educational Facilities Authority
(St. Louis University), Series 1985, Variable Rate
Demand Bonds, 4.200%, 12/01/05+ VMIG-1 500,000
- ----------------------------------------------------------------------------------------------------------------------------------
$ 1,500,000 Total Temporary Investments - 0.3% 1,500,000
- ----------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 5,022,337
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $420,882,696
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 85 $376,053,505 90%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 1 1,932,544 1
PORTFOLIO OF A+ A1 3 21,845,750 5
INVESTMENTS A, A- A, A2, A3 1 14,528,560 4
(EXCLUDING
TEMPORARY
INVESTMENTS):
TOTAL 90 $414,360,359 100%
<FN>
All of the bonds in the portfolio, excluding temporary investments in
short-term municipal securities, are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by
an escrow or trust containing sufficient U.S. Government or U.S. Government
agency securities, any of which ensure the timely payment of principal and
interest.
* Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions at
varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
(WI)Security purchased on a when-issued basis (note 1).
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
(Unaudited)
<CAPTION>
NQI NIO NIF NPE
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $818,361,099 $1,771,958,508 $424,011,851 $318,630,997
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 4,910,000 6,600,000 300,000 --
Cash 514,014 87,457 129,917 1,325,753
Receivables:
Interest 16,408,247 34,429,667 8,202,699 5,814,680
Investments sold 504,147 754,782 30,319 --
Other assets 312,099 146,001 38,522 29,854
------------ -------------- ------------ ------------
Total assets 841,009,606 1,813,976,415 432,713,308 325,801,284
------------ -------------- ------------ ------------
LIABILITIES
Payable for investments purchased 8,665,673 -- -- --
Accrued expenses:
Management fees (note 6) 425,184 908,498 224,824 170,223
Other 344,934 592,952 100,186 70,620
Preferred share dividends payable 357,648 269,637 51,688 65,702
Common share dividends payable 3,061,844 6,526,036 1,491,631 990,914
------------ -------------- ------------ ------------
Total liabilities 12,855,283 8,297,123 1,868,329 1,297,459
------------ -------------- ------------ ------------
Net assets (note 7) $828,154,323 $1,805,679,292 $430,844,979 $324,503,825
============ ============== ============ ============
Preferred shares, at liquidation value $260,000,000 $ 600,000,000 $140,000,000 $110,000,000
============ ============== ============ ============
Preferred shares outstanding 10,400 24,000 5,600 4,400
============ ============== ============ ============
Common shares outstanding 37,339,555 79,585,806 19,123,476 15,128,458
============ ============== ============ ============
Netasset value per Common share outstanding (net
assets less Preferred shares at liquidation
value, divided by Common shares outstanding) $ 15.22 $ 15.15 $ 15.21 $ 14.18
============ ============== ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
(Unaudited)
<CAPTION>
NPX
<S> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $414,360,359
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 1,500,000
Cash 72,074
Receivables:
Interest 8,438,881
Investments sold 5,767,070
Other assets 58,040
------------
Total assets 430,196,424
------------
LIABILITIES
Payable for investments purchased 7,685,570
Accrued expenses:
Management fees (note 6) 219,466
Other 129,793
Preferred share dividends payable 50,696
Common share dividends payable 1,228,203
------------
Total liabilities 9,313,728
------------
Net assets (note 7) $420,882,696
============
Preferred shares, at liquidation value $158,900,000
============
Preferred shares outstanding 6,356
============
Common shares outstanding 20,642,068
============
Netasset value per Common share outstanding
(net assets less Preferred
shares at liquidation value, divided by
Common shares outstanding) $ 12.69
============
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended April 30, 1996
(Unaudited)
<CAPTION>
NQI NIO NIF NPE
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $26,615,737 $56,521,179 $13,161,410 $9,259,539
------------ ------------ ------------ -----------
Expenses:
Management fees (note 6) 2,637,245 5,633,513 1,392,265 1,053,885
Preferred shares--auction fees 319,743 759,745 189,421 137,500
Preferred shares--dividend disbursing agent fees 20,941 42,661 10,055 15,000
Shareholders' servicing agent fees and expenses 66,079 105,346 25,500 17,899
Custodian's fees and expenses 60,269 108,145 37,064 31,968
Directors'/Trustees' fees and expenses (note 6) 4,364 1,737 526 678
Professional fees 14,206 18,542 11,500 11,088
Shareholders' reports--printing and mailing expenses 79,383 155,608 44,953 35,137
Stock exchange listing fees 15,615 33,861 12,134 13,997
Portfolio insurance expense 114,610 150,653 -- 6,195
Investor relations expense 29,019 57,953 13,806 10,238
Other expenses 18,587 63,119 4,183 6,138
------------ ------------ ------------ -----------
Total expenses 3,380,061 7,130,883 1,741,407 1,339,723
------------ ------------ ------------ -----------
Net investment income 23,235,676 49,390,296 11,420,003 7,919,816
------------ ------------ ------------ -----------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) 5,086,207 6,296,998 662,185 18,348
Net change in unrealized appreciation or depreciation
of investments (20,209,607) (36,519,929) (6,572,340) (4,333,867)
------------ ------------ ------------ -----------
Net gain (loss) from investments (15,123,400) (30,222,931) (5,910,155) (4,315,519)
------------ ------------ ------------ -----------
Net increase in net assets from operations $ 8,112,276 $19,167,365 $ 5,509,848 $3,604,297
============ ============ ============ ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended April 30, 1996
(Unaudited)
<CAPTION>
NPX
<S> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 12,052,984
------------
Expenses:
Management fees (note 6) 1,365,782
Preferred shares--auction fees 198,625
Preferred shares--dividend disbursing agent fees 22,500
Shareholders' servicing agent fees and expenses 20,842
Custodian's fees and expenses 31,883
Directors'/Trustees' fees and expenses (note 6) 448
Professional fees 18,788
Shareholders' reports--printing and mailing expenses 21,897
Stock exchange listing fees 16,170
Portfolio insurance expense 25,505
Investor relations expense 13,311
Other expenses 3,265
------------
Total expenses 1,739,016
------------
Net investment income 10,313,968
------------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (841,593)
Net change in unrealized appreciation or depreciation
of investments (6,256,904)
------------
Net gain (loss) from investments (7,098,497)
------------
Net increase in net assets from operations $ 3,215,471
============
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NQI NIO
ix months ended Year ended Six months ended Year ended
4/30/96 10/31/95 4/30/96 10/31/95
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 23,235,676 $ 47,356,119 $ 49,390,296 $ 99,656,769
Net realized gain (loss) from investment transactions,
net of taxes, if applicable 5,086,207 9,599,723 6,296,998 5,949,070
Net change in unrealized appreciation or depreciation
of investments (20,209,607) 39,973,498 (36,519,929) 121,824,356
------------ ------------ -------------- --------------
Net increase in net assets from operations 8,112,276 96,929,340 19,167,365 227,430,195
------------ ------------ -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (18,371,064) (37,862,338) (39,156,209) (78,312,431)
Preferred shareholders (4,305,674) (10,965,891) (10,096,880) (24,360,548)
From accumulated net realized gains from
investment transactions:
Common shareholders (5,309,685) -- (4,544,352) --
Preferred shareholders (1,554,540) -- (1,470,440) --
------------ ------------ -------------- --------------
Decrease in net assets from distributions to
shareholders (29,540,963) (48,828,229) (55,267,881) (102,672,979)
------------ ------------ -------------- --------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions -- -- -- --
------------ ------------ -------------- --------------
Net increase in net assets derived from capital
share transactions -- -- -- --
------------ ------------ -------------- --------------
Net increase (decrease) in net assets (21,428,687) 48,101,111 (36,100,516) 124,757,216
Net assets at beginning of period 849,583,010 801,481,899 1,841,779,808 1,717,022,592
------------ ------------ -------------- --------------
Net assets at end of period $828,154,323 $849,583,010 $1,805,679,292 $1,841,779,808
============ ============ ============== ==============
Balance of undistributed net investment income at
end of period $ 1,696,886 $ 1,137,948 $ 3,342,579 $ 3,205,372
============ ============ ============== ==============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NIF NPE
Six months ended Year ended Six months ended Year ended
4/30/96 10/31/95 4/30/96 10/31/95
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 11,420,003 $ 22,900,239 $ 7,919,816 $ 16,224,285
Net realized gain (loss) from investment transactions,
net of taxes, if applicable 662,185 3,892 18,348 (1,944,767)
Net change in unrealized appreciation or depreciation
of investments (6,572,340) 28,757,014 (4,333,867) 31,478,880
------------ ------------ ------------ ------------
Net increase in net assets from operations 5,509,848 51,661,145 3,604,297 45,758,398
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (8,949,787) (17,899,574) (6,013,563) (12,707,908)
Preferred shareholders (2,634,868) (5,531,433) (1,930,851) (4,215,008)
From accumulated net realized gains from
investment transactions:
Common shareholders -- -- -- --
Preferred shareholders -- -- -- --
------------ ------------ ------------ ------------
Decrease in net assets from distributions to
shareholders (11,584,655) (23,431,007) (7,944,414) (16,922,916)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions -- -- -- --
------------ ------------ ------------ ------------
Net increase in net assets derived from capital
share transactions -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (6,074,807) 28,230,138 (4,340,117) 28,835,482
Net assets at beginning of period 436,919,786 408,689,648 328,843,942 300,008,460
------------ ------------ ------------ ------------
Net assets at end of period $430,844,979 $436,919,786 $324,503,825 $328,843,942
============ ============ ============ ============
Balance of undistributed net investment income at
end of period $ 619,336 $ 783,988 $ 241,015 $ 265,613
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NPX
Six months ended Year ended
4/30/96 10/31/95
<S> <C> <C>
OPERATIONS
Net investment income $ 10,313,968 $ 20,673,186
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (841,593) (12,029,555)
Net change in unrealized appreciation or depreciation
of investments (6,256,904) 55,044,396
------------ ------------
Net increase in net assets from operations 3,215,471 63,688,027
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (7,369,221) (15,419,632)
Preferred shareholders (2,871,913) (6,051,636)
From accumulated net realized gains from
investment transactions:
Common shareholders -- --
Preferred shareholders -- --
------------ ------------
Decrease in net assets from distributions to
shareholders (10,241,134) (21,471,268)
------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions -- --
------------ ------------
Net increase in net assets derived from capital
share transactions -- --
------------ ------------
Net increase (decrease) in net assets (7,025,663) 42,216,759
Net assets at beginning of period 427,908,359 385,691,600
------------ ------------
Net assets at end of period $420,882,696 $427,908,359
============ ============
Balance of undistributed net investment income at
end of period $ 471,508 $ 398,674
============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At April 30, 1996, 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), Nuveen
Insured Premium Income Municipal Fund, Inc. (NPE) and Nuveen Insured Premium
Income Municipal Fund 2 (NPX).
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
Portfolio securities for which market quotations are readily available are
valued at the mean between the quoted bid and asked prices or the yield
equivalent. Portfolio securities for which market quotations are not
readily available are valued at fair value by consistent application of
methods determined in good faith by the Board of Directors/Trustees. Temporary
investments in securities that have variable rate and demand features
qualifying them as short-term securities are traded and valued at amortized
cost.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery
basis may be settled a month or more after the transaction date. The
securities so purchased are subject to market fluctuation during this period.
The Funds have instructed the custodian to segregate assets in a separate
account with a current value at least equal to the amount of their purchase
commitments. At April 30, 1996, NQI and NPX had outstanding purchase
commitments of $8,665,673 and $7,685,570, respectively. There were no such
purchase commitments in NIO, NIF or NPE.
<PAGE>
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt
securities when required for federal income tax purposes.
Federal Income Taxes
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies by distributing to shareholders
all of the Funds' tax-exempt net investment income, in addition to any
significant amounts of net realized capital gains from investments and/or
market discount realized upon the sale of securities. 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.
Dividends and Distributions Shareholders
Net investment income is declared as a dividend monthly and payment is made or
to reinvestment is credited to shareholder accounts after month-end. Net
realized capital gains from securities transactions are distributed to
shareholders not less frequently than annually only to the extent they
exceed available capital loss carryovers.
Distributions to shareholders of net investment income and net realized
capital gains are recorded on the ex-dividend date. The amount and timing of
such 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
result and will be classified as either distributions in excess of net
investment income or distributions in excess of net realized gains, if
applicable.
<PAGE>
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in more than one Series. The dividend
rate on each Series may change every seven days, as set by the Auction Agent,
except for NQI Series F which has lengthened its current dividend period from
seven days to five years. The number of shares outstanding, by Series and in
total, at April 30, 1996, for each Fund is as follows: NQI NIO NIF NPE
<TABLE>
<CAPTION>
NQI NIO NIF NPE
Number of shares:
<S> <C> <C> <C> <C>
Series M 2,600 4,000 -- --
Series T 2,600 4,000 -- 2,200
Series W 2,600 4,000 -- --
Series Th -- 4,000 2,800 2,200
Series Th2 -- 4,000 -- --
Series F 2,600 4,000 2,800 --
------ ------ ----- -----
Total 10,400 24,000 5,600 4,400
====== ====== ===== =====
<CAPTION>
NPX
Number of shares:
<S> <C>
Series M 2,080
Series T --
Series W 2,080
Series Th --
Series Th2 --
Series F 2,196
-----
Total 6,356
=====
</TABLE>
<PAGE>
Insurance
The Funds invest in municipal securities which are either covered by insurance
or are backed by an escrow or trust account containing sufficient U.S.
Government or U.S. Government agency securities, both of which ensure the
timely payment of principal and interest. Each insured municipal security is
covered by Original Issue Insurance, Secondary Market Insurance or Portfolio
Insurance. Such insurance does not guarantee the market value of the municipal
securities or the value of the Funds' shares. Original Issue Insurance and
Secondary Market Insurance remain in effect as long as the municipal
securities covered thereby remain outstanding and the insurer remains in
business, regardless of whether the Funds ultimately dispose of such municipal
securities. Consequently, the market value of the municipal securities covered
by Original Issue Insurance or Secondary Market Insurance may reflect value
attributable to the insurance. Portfolio Insurance is effective only while the
municipal securities are held by the Funds. Accordingly, neither the prices
used in determining the market value of the underlying municipal securities
nor the net asset value of the Funds' shares include value, if any,
attributable to the Portfolio Insurance. Each policy of the Portfolio
Insurance does, however, give the Funds the right to obtain permanent
insurance with respect to the municipal security covered by the Portfolio
Insurance policy at the time of its sale.
Derivative Financial Instruments
In October 1994, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 119 Disclosure about
Derivative Financial Instruments and Fair Value of Financial Instruments which
prescribes disclosure requirements for transactions in certain derivative
financial instruments including future, forward, swap, and option contracts,
and other financial instruments with similar characteristics. Although the
Funds are authorized to invest in such financial instruments, and may do so in
the future, they did not make any such investments during the six months ended
April 30, 1996.
<PAGE>
2. FUND SHARES
There were no share transactions during the six months ended April 30, 1996,
or the year ended October 31, 1995, in any of the Funds.
3. SECURITIES TRANSACTIONS
Purchase and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the six months ended
April 30, 1996, were as follows:
<TABLE>
<CAPTION>
NQI NIO NIF NPE
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $112,881,415 $142,128,059 $ 8,614,014 $16,207,571
Temporary municipal investments 77,910,000 78,900,000 17,200,000 13,450,000
SALES AND MATURITIES
Investments in municipal securities 104,875,570 152,384,756 7,115,560 15,444,815
Temporary municipal investments 93,400,000 73,900,000 18,200,000 14,750,000
============ ============ =========== ===========
<CAPTION>
NPX
<S> <C>
PURCHASES
Investments in municipal securities $78,319,543
Temporary municipal investments 34,700,000
SALES AND MATURITIES
Investments in municipal securities 75,672,780
Temporary municipal investments 35,700,000
===========
</TABLE>
At April 30, 1996, the identified cost of investments owned for federal income
tax purposes was the same as the cost for financial reporting purposes for
each Fund.
At October 31, 1995, the Funds' last fiscal year end, the following Funds had
unused capital loss carryovers available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryovers
will expire as follows:
<PAGE>
<TABLE>
<CAPTION>
NIF NPE NPX
<S> <C> <C> <C>
Expiration year:
2000 $323,662 $ -- $ --
2001 168,003 289,342 --
2002 252,323 961,639 10,409,736
2003 -- 1,944,767 12,029,555
--------- ---------- -----------
Total $743,988 $3,195,748 $22,439,291
========= ========== ===========
</TABLE>
<PAGE>
<TABLE>
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On May 1, 1996, the Funds declared Common share dividend distributions from
their ordinary income which were paid June 3, 1996, to shareholders of record
on May 15, 1996, as follows:
<CAPTION>
NQI NIO NIF NPE
<S> <C> <C> <C> <C>
Dividend per share $.0820 $.0820 $.0780 $.0655
====== ====== ====== ======
<CAPTION>
NPX
<S> <C>
Dividend per share $.0595
======
</TABLE>
<PAGE>
<TABLE>
5. UNREALIZED APPRECIATION (DEPRECIATION) Gross unrealized appreciation and
gross unrealized depreciation of investments at April 30, 1996, were as
follows:
<CAPTION>
NQI NIO NIF NPE
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $44,095,591 $98,154,708 $25,425,757 $8,132,727
Depreciation (3,110,869) (7,795,778) (324,892) (552,803)
------------ ------------ ----------- ----------
Net unrealized appreciation (depreciation) $40,984,722 $90,358,930 $25,100,865 $7,579,924
=========== =========== =========== ===========
<CAPTION>
NPX
<S> <C>
Gross unrealized:
Appreciation $ 4,630,784
Depreciation (6,253,159)
-------------
Net unrealized appreciation (depreciation) $ (1,622,375)
=============
</TABLE>
<PAGE>
6. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each
Fund pays to the Adviser an annual management fee, payable monthly, at the
rates set forth below, which are based upon the average daily net asset value
of each Fund:
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSET VALUE MANAGEMENT FEE
- -----------------------------------------------------------------------------
<S> <C>
For the first $125,000,000 .65 of 1%
For the next $125,000,000 .6375 of 1
For the next $250,000,000 .625 of 1
For the next $500,000,000 .6125 of 1
For the next $1,000,000,000 .6 of 1
For net assets over $2,000,000,000 .5875 of 1
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those Directors/Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
</TABLE>
<PAGE>
<TABLE>
7. COMPOSITION OF NET ASSETS
At April 30, 1996, net assets consisted of:
<CAPTION>
NQI NIO NIF NPE
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $ 260,000,000 $ 600,000,000 $ 140,000,000 $ 110,000,000
Common shares, $.01 par value per share 373,396 795,858 191,235 151,285
Paid-in surplus 520,013,892 1,104,893,120 265,013,681 209,709,001
Balance of undistributed net investment income 1,696,886 3,342,579 619,336 241,015
Accumulated net realized gain (loss)
from investment transactions 5,085,427 6,288,805 (80,138) (3,177,400)
Net unrealized appreciation or depreciation
of investments 40,984,722 90,358,930 25,100,865 7,579,924
-------------- -------------- -------------- --------------
Net assets $ 828,154,323 $1,805,679,292 $ 430,844,979 $ 324,503,825
============== ============== ============== ==============
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000 1,000,000
============== ============== ============== ==============
<CAPTION>
NPX
<S> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $ 158,900,000
Common shares, $.01 par value per share 206,421
Paid-in surplus 286,205,463
Balance of undistributed net investment income 471,508
Accumulated net realized gain (loss)
from investment transactions (23,278,321)
Net unrealized appreciation or depreciation
of investments (1,622,375)
-------------
Net assets $ 420,882,696
=============
Authorized shares:
Common Unlimited
Preferred Unlimited
=============
</TABLE>
<PAGE>
<TABLE>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At April 30, 1996, the revenue sources by
municipal purpose for these investments, expressed as a percent of total
investments, were as follows:
<CAPTION>
NQI NIO NIF NPE
<S> <C> <C> <C> <C>
Revenue Bonds:
Housing Facilities 22% 18% 10% 12%
Health Care Facilities 18 21 14 11
Pollution Control Facilities 8 11 17 17
Transportation 4 4 7 14
Water / Sewer Facilities 6 4 1 3
Electric Utilities 2 2 3 6
Lease Rental Facilities 1 4 3 7
Educational Facilities 3 3 1 3
Other 4 5 4 4
General Obligation Bonds 9 5 5 15
Escrowed Bonds 23 23 35 8
----- ----- ----- -----
100% 100% 100% 100%
===== ===== ===== =====
<CAPTION>
NPX
<S> <C>
Revenue Bonds:
Housing Facilities 15%
Health Care Facilities 7
Pollution Control Facilities 13
Transportation 10
Water / Sewer Facilities 10
Electric Utilities 9
Lease Rental Facilities 2
Educational Facilities 3
Other 2
General Obligation Bonds 26
Escrowed Bonds 3
-----
100%
=====
</TABLE>
All of the long-term and intermediate-term investments owned by the Funds are
either covered by insurance issued by several private insurers or are backed
by an escrow or trust containing U.S. Government or U.S. Government agency
securities, both of which ensure the timely payment of principal and interest
in the event of default. Such insurance or escrow, however, does not guarantee
the market value of the municipal securities or the value of any of the Funds'
shares.
All of the temporary investments in short-term municipal securities have
credit enhancements (letters of credit, guarantees or insurance) issued by
third party domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<CAPTION>
Operating performance Dividends from
net investment income
Net
realized &
Net asset unrealized
value Net gain (loss) To To
beginning investment from invest- Common Preferred
of period income ments++ shareholders shareholders+
NQI
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 $15.790 $ .622 $ (.401) $ (.492) $(.115)
Year ended 10/31,
1995 14.500 1.269 1.329 (1.014) (.294)
1994 16.580 1.269 (2.038) (1.038) (.257)
1993 15.110 1.320 1.574 (1.194) (.212)
1992 14.850 1.347 .244 (1.067) (.229)
12/19/90 to
10/31/91 14.050 1.004 .849 (.684) (.190)
<CAPTION>
NIO
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 15.600 .621 (.377) (.492) (.127)
Year ended 10/31,
1995 14.040 1.252 1.598 (.984) (.306)
1994 16.240 1.238 (2.175) (1.001) (.249)
1993 14.400 1.238 1.897 (1.039) (.232)
1992 14.130 1.128 .346 (.874) (.183)
9/19/91 to
10/31/91 14.050 .052 .045 -- --
<CAPTION>
NIF
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 15.530 .597 (.311) (.468) (.138)
Year ended 10/31,
1995 14.050 1.197 1.508 (.936) (.289)
1994 16.280 1.192 (2.214) (.960) (.248)
1993 14.030 1.204 2.233 (.975) (.212)
12/19/91 to
10/31/92 14.050 .760 .100 (.600) (.093)
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Organization Common Total
offering share investment
costs and market return
To To Preferred share Net asset value on
Common Preferred underwriting value end end of market
shareholders shareholders+ discounts of period period value**
<S> <C> <C> <C> <C> <C> <C>
NQI
6 mos. ended
4/30/96 $(.142) $(.042) $ -- $15.220 $15.000 4.24%
Year ended 10/31,
1995 -- -- -- 15.790 15.000 22.62
1994 (.014) (.002) -- 14.500 13.125 (19.13)
1993 (.015) (.003) -- 16.580 17.375 22.55
1992 (.027) (.008) -- 15.110 15.250 5.32
12/19/90 to
10/31/91 -- -- (.179) 14.850 15.500 8.04
<CAPTION>
NIO
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 (.057) (.018) -- 15.150 14.875 3.68
Year ended 10/31,
1995 -- -- -- 15.600 14.875 22.78
1994 (.011) (.002) -- 14.040 13.000 (13.60)
1993 (.019) (.005) -- 16.240 16.125 23.41
1992 -- -- (.147) 14.400 14.000 (.14)
9/19/91 to
10/31/91 -- -- (.017) 14.130 14.875 (.83)
<CAPTION>
NIF
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 -- -- -- 15.210 14.500 3.19
Year ended 10/31,
1995 -- -- -- 15.530 14.500 24.14
1994 -- -- -- 14.050 12.500 (14.53)
1993 -- -- -- 16.280 15.625 19.03
12/19/91 to
10/31/92 -- -- (.187) 14.030 14.000 (2.77)
<PAGE>
<CAPTION>
Ratios/Supplemental data
Ratio of
net
Total Net assets Ratio of investment
return on end of expenses income Portfolio
net asset period (in to average to average turnover
value** thousands) net assets+++ net assets+++ rate
NQI
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 .32% $828,154 .80%* 5.51%* 13%
Year ended 10/31,
1995 16.43 849,583 .81 5.73 30
1994 (6.43) 801,482 .82 5.64 22
1993 18.34 876,821 .80 5.76 7
1992 9.36 815,993 .78 6.06 5
12/19/90 to
10/31/91 10.83 801,050 .77* 6.14* 33
<CAPTION>
NIO
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 .55 1,805,679 .78* 5.37* 8
Year ended 10/31,
1995 18.74 1,841,780 .79 5.59 16
1994 (7.59) 1,717,023 .79 5.44 20
1993 20.75 1,892,814 .81 5.36 5
1992 8.21 1,745,207 .79 5.55 13
9/19/91 to
10/31/91 .57 1,116,736 .77* 4.00* --
<CAPTION>
NIF
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 .89 430,845 .80* 5.21* 2
Year ended 10/31,
1995 17.73 436,920 .81 5.40 5
1994 (8.06) 408,690 .81 5.30 4
1993 23.67 451,289 .81 5.31 9
12/19/91 to
10/31/92 4.13 407,907 .81* 5.00* 3
See notes on page 74.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<CAPTION>
Operating performance Dividends from net
investment income
Net
realized &
Net asset unrealized
value Net gain (loss) To To
beginning investment from invest- Common Preferred
of period income ments++ shareholders shareholders+
NPE
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 $14.470 $ .524 $(.288) $(.398) $(.128)
Year ended 10/31,
1995 12.560 1.073 1.956 (.840) (.279)
1994 15.420 1.100 (2.824) (.946) (.190)
12/17/92 to
10/31/93 14.050 .779 1.453 (.584) (.095)
<CAPTION>
NPX
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 13.030 .500 (.344) (.357) (.139)
Year ended 10/31,
1995 10.990 1.001 2.079 (.747) (.293)
1994 14.290 .978 (3.170) (.775) (.196)
7/22/93 to
10/31/93 14.050 .114 .228 (.064) --
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Organization Common Total
offering share investment
costs and market return
To To Preferred share Net asset value on
Common Preferred underwriting value end end of market
shareholders shareholders+ discounts of period period value**
NPE
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 $ -- $ -- $ -- $14.180 $13.000 5.08%
Year ended 10/31,
1995 -- -- -- 14.470 12.750 22.67
1994 -- -- -- 12.560 11.125 (20.42)
12/17/92 to
10/31/93 -- -- (.183) 15.420 15.000 4.01
<CAPTION>
NPX
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 -- -- -- 12.690 11.250 1.99
Year ended 10/31,
1995 -- -- -- 13.030 11.375 23.46
1994 -- -- (.137) 10.990 9.875 (23.99)
7/22/93 to
10/31/93 -- -- (.038) 14.290 13.875 (7.08)
<PAGE>
<CAPTION>
Ratios/Supplemental data
Ratio of
net
Total Net assets Ratio of investment
return on end of expenses income Portfolio
net asset period (in to average to average turnover
value** thousands) net assets+++ net assets+++ rate
NPE
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 .68% $324,504 .81%* 4.80%* 5%
Year ended 10/31,
1995 22.56 328,844 .82 5.12 28
1994 (12.88) 300,008 .82 5.14 16
12/17/92 to
10/31/93 14.13 343,240 .81* 4.75* 10
<CAPTION>
NPX
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/96 .04 420,883 .81* 4.80* 18
Year ended 10/31,
1995 26.20 427,908 .83 5.07 30
1994 (18.24) 385,692 .83 4.83 25
7/22/93 to
10/31/93 2.16 295,074 .86* 3.16* --
<FN>
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes
in market value per share. Total Return on Net Asset Value is the combination
of reinvested dividend income, reinvested capital gains distributions, if any,
and changes in net asset value per share.
+ The amounts shown are based on Common share equivalents.
++ Net of taxes, if applicable.
+++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
</FN>
</TABLE>
<PAGE>
Photographic image of John Nuveen, Sr. founder of Nuveen.
Your investment partner
Since 1898, John Nuveen & Co. Incorporated has worked to bring together the
various participants in the municipal bond industry and build strong
partnerships that benefit all concerned. Investors, financial advisers,
municipal officials, investment bankers--Nuveen believes that forging
relationships with these groups based on trust and value is the key to
successful investing.
As the oldest and largest municipal bond specialist in the United States,
Nuveen's investment bankers work with issuers to understand and meet their
needs in structuring and selling their bond issues.
Nuveen also works closely with financial advisers around the country,
including brokerage firms, banks, insurance companies, and independent
financial planners, to bring the benefits of tax-free investing to you. These
advisers are experts at identifying your needs and recommending the best
solutions for your situation. Together we make a powerful team, helping you
create a successful investment plan that meets your needs today and in the
future.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
ETF4-JUN 96
