UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-06379
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Nuveen Insured Municipal Opportunity Fund, Inc.
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: October 31
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Date of reporting period: April 30, 2008
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Semi-Annual Report | Nuveen Investments
April 30, 2008 | Municipal Closed-End Funds
Photo of: Small child
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 2
NPX
NUVEEN INSURED
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NVG
NUVEEN INSURED
TAX-FREE ADVANTAGE
MUNICIPAL FUND
NEA
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NUVEEN
Investments
Chairman's
LETTER TO SHAREHOLDERS
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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
It is with a variety of emotions that I write my last letter to Nuveen Fund
shareholders. For a dozen years, it has been my privilege to communicate
periodically with you through these annual and semi-annual reports about the
performance and uses of your Fund. Over that time, I've tried to emphasize the
central role that quality municipal bonds can play in creating attractive
opportunities for current tax-free income, long-term return and portfolio
diversification. I firmly believe that all our Fund shareholders, working in
conjunction with a trusted financial advisor, have the potential to reach their
financial objectives by using Nuveen Funds as a core component of a
well-balanced portfolio.
As I noted in your Fund's last shareholder report, Nuveen Investments was
acquired in November 2007 by a group led by Madison Dearborn Partners, LLC.
While this event had no impact on the investment objectives, portfolio
management strategies or dividend policies of your Fund, it did provide a
convenient point to begin implementing a long-planned transition in the senior
management team at Nuveen. As a part of this process, I will be leaving the
Board of the Nuveen Funds on June 30, 2008.
In addition, Nuveen and your Fund's Board determined that Fund shareholders
would be best served by having an independent director serve as the new chairman
of the Fund Board. Therefore, I am very excited and pleased to report that I
will be succeeded as chairman of your Nuveen Fund Board by Robert Bremner. A
member of the Board since 1997, Bob is a management consultant and private
investor not affiliated with Nuveen. Over the years, he has played a critical
role on the Fund Board, most recently as the lead independent director, and I
know Bob and the other Board members are determined to maintain the standards
and commitment to quality that you have come to expect from your Nuveen
investment.
Please take the time to review the Portfolio Manager's Comments, the Common
Share Dividend and Share Price Information, and the Performance Overview
sections of this report. All of us are grateful that you have chosen Nuveen
Investments as a partner as you pursue your financial goals, and, on behalf of
Bob Bremner and the other members of your Fund's Board, let me say we look
forward to continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
June 16, 2008
Portfolio Manager's COMMENTS
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Nuveen Investments Municipal Closed-End Funds | NQI, NIO, NIF,
| NPX, NVG, NEA
Portfolio manager Paul Brennan reviews key investment strategies and the
six-month performance of these six insured Funds. With 19 years of industry
experience, including 17 years at Nuveen, Paul assumed portfolio management
responsibility for the six insured Funds in 2006.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE SIX-MONTH
REPORTING PERIOD ENDED APRIL 30, 2008?
During this six-month period, the municipal market experienced a great deal of
volatility, as issues related to the sub-prime mortgage industry had an
indirect, but important, influence on the municipal market's performance. The
continued uncertainty about municipal bond insurers contributed to a turbulent
municipal market environment, as did tighter liquidity stemming from problems in
the credit markets. We sought to capitalize on this environment by continuing to
focus on relative value, using a fundamental approach to find undervalued
sectors and individual credits with the potential to perform well over the long
term.
As the market discounted bonds that were out of favor, such as credits backed by
certain municipal bond insurers or bonds with investment characteristics
perceived to have more risk exposure, we took advantage of opportunities that we
considered overlooked and undervalued to selectively add these types of bonds to
our portfolios.
In addition, we believed that the steepening municipal yield curve began to
offer better reward opportunities for purchases made further out on the curve.
As a result, many of the additions to our portfolios emphasized longer
maturities. We also added exposure to the short end of the yield curve by
purchasing variable rate demand obligations (VRDOs) at very attractive yields.
VRDOs are floating-rate securities that offer interest rates set daily or weekly
based on an index of short-term municipal rates. Our purchase activity during
this period was directed toward bonds with unusual structures and
characteristics that we believed represented opportunities to add value, manage
duration and volatility and support the Funds' income streams.
To generate cash for purchases, we selectively sold some holdings with shorter
durations,(1) including pre-refunded bonds,(2) at attractive prices resulting
from high demand. Selling shorter duration bonds and reinvesting further out on
the yield curve also helped to improve the Funds' overall call protection
profiles. In addition, a number of our new purchases were funded with cash
generated by bond redemptions.
Discussions of specific investments are for illustrative purposes only and are
not intended as recommendations of individual investments. The views expressed
in this commentary represent those of the portfolio manager as of the date of
this report and are subject to change at any time, based on market conditions
and other factors. The Funds disclaim any obligation to advise shareholders of
such changes.
(1) Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these changes
than bonds with shorter durations.
(2) Advance refundings, also known as pre-refundings or refinancings, occur when
an issuer sells new bonds and uses the proceeds to fund principal and interest
payments of older existing bonds. This process often results in lower borrowing
costs for bond issuers.
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4
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As noted earlier, over the course of the entire reporting period, we saw the
municipal yield curve steepen, as municipal bond interest rates at the short end
of the curve declined and longer rates rose. In this environment, we continued
to emphasize a disciplined approach to duration management. As part of this
strategy, we use inverse floating rate securities,(3) a type of derivative
financial instrument, in all six of these Funds. Inverse floaters typically
provide the dual benefit of bringing the Funds' durations closer to our
strategic target and enhancing their income-generation capabilities. Going into
this period, NPX also used forward interest rate swaps, another type of
derivative financial instrument. The goal of this strategy was to help us manage
NPX's common share net asset value (NAV) volatility without having a negative
impact on its income stream or common share dividends over the short term.
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as relevant index and peer group
information, are presented in the accompanying table.
Total Returns on Common Share Net Asset Value*
For periods ended 4/30/08
Six-Month 1-Year 5-Year 10-Year
NQI -2.19% -2.08% 3.43% 5.29%
NIO -1.05% -0.86% 3.72% 5.35%
NIF -1.62% -1.31% 3.50% 5.07%
NPX -1.16% -1.06% 3.57% 5.35%
NVG 0.31% 1.16% 4.51% NA
NEA 0.32% 1.60% 4.93% NA
Lipper Insured
Municipal Debt
Funds Average(4) -1.58% -1.68% 3.77% 5.01%
Lehman Brothers
Insured Municipal
Bond Index(5) 0.89% 2.24% 3.98% 5.29%
For the six months ended April 30, 2008, the cumulative return on common share
NAV for all six Funds in this report underperformed the return on the Lehman
Brothers Insured Municipal Bond Index. The six-month returns for NIO, NPX, NVG
and NEA exceeded the average return for the Lipper Insured Municipal Debt Funds
Average, NIF performed in line with the peer group and NQI underperformed the
peer group average.
One of the major factors impacting the six-month performance of these Funds in
relation to that of the unleveraged Lehman Brothers Insured Municipal Bond Index
was the use of financial leverage. While leverage provides opportunities for
additional income and total returns for common shareholders, the benefits of
leveraging are tied
*Six-month returns are cumulative; returns for one-year, five-year, and ten-year
are annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
(3) An inverse floating rate security is a financial instrument designed to pay
long-term tax-exempt interest at a rate that varies inversely with a short-term
tax-exempt interest rate index. For the Nuveen Funds, the index typically used
is the Securities Industry and Financial Markets (SIFM) Municipal Swap Index
(previously referred to as the Bond Market Association Index or BMA). Inverse
floaters, including those inverse floating rate securities in which the Funds
invested during this reporting period, are further defined within the Notes to
Financial Statements and Glossary of Terms Used in This Report sections of this
shareholder report.
(4) The Lipper Insured Municipal Debt Funds Average is calculated using the
returns of all closed-end funds in this category for each period as follows: 6
months, 23; 1 year, 23; 5 years, 21; and 10 years, 16. Fund and Lipper returns
assume reinvestment of dividends.
(5) The Lehman Brothers Insured Municipal Bond Index is an unleveraged,
unmanaged national index comprising a broad range of insured municipal bonds.
Results for the Lehman index do not reflect any expenses.
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5
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in part to the short-term rates that leveraged Funds pay their preferred
shareholders. The Funds' borrowing costs remained relatively high, negatively
impacting their total returns.
Another key factor with a major impact on the performances of these insured
Funds involved their relative exposures to bonds backed by municipal bond
insurers that had their credit ratings downgraded. As concern increased about
the balance sheets of these insurers, prices on bonds insured by these companies
declined for many insured bonds. Price declines were not limited to certain
insured bonds during this reporting period, many other bonds saw their prices
decline also. The concerns about the financial health of these bond insurers led
to poor investment performance relative to other comparable rated bonds.
Other factors that influenced the Funds' returns included yield curve and
duration positioning, the use of derivatives, and credit exposure and sector
allocations.
During this six-month period, bonds in the Lehman Brothers Municipal Bond Index
with maturities of eight years or less, especially those maturing in two to six
years, benefited the most from changes in the interest rate environment. As a
result, these shorter maturity bonds generally outperformed credits with longer
maturities. Bonds having the longest maturities (22 years and longer) posted the
worst returns. As previously noted, one of our strategies during this period
focused on adding longer bonds to our portfolios as the yield curve steepened,
based on our belief that these bonds offered good long-term potential. This
purchase activity helped to extend the Funds' durations, which generally had a
negative impact on performance during this six months. Among these Funds, NVG
and NEA were better positioned in terms of duration, with less exposure to the
underperforming long part of the yield curve than the other four Funds in this
report.
As mentioned earlier, all six of these Funds used inverse floaters as part of
our duration management strategies. These inverse floaters negatively impacted
performance due to the fact that they effectively increased the Funds' exposure
to longer maturity bonds during a period when shorter maturities were in favor
in the market. However, the inverse floaters also benefited the Funds by helping
to support their income streams.
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6
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In general, bonds with higher credit quality, except those insured by the
troubled bond insurers, outperformed those with lower credit quality. The
underperformance of the lower quality sector was largely the result of
risk-averse investors' flight to quality as disruptions in the financial and
housing markets deepened. The performances of these six insured Funds generally
benefited from their higher quality holdings. This included pre-refunded bonds,
which performed exceptionally well due primarily to their shorter effective
maturities and higher credit quality. Among these Funds, NVG, NEA, and NIO had
the heaviest weightings of pre-refunded bonds, while NQI held the fewest of
these bonds. Sectors of the market that generally contributed positively to the
Funds' performances included general obligation bonds, water and sewer, electric
utilities and special tax issues.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES AND FUND POLICY CHANGES
The portfolios of investments reflect the ratings on certain bonds insured by
AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. During the period covered
by this report, at least one rating agency reduced the rating for AMBAC-insured
and MBIA-insured bonds to AA and at least one rating agency further reduced the
ratings for FGIC-insured and XLCA-insured bonds to BB. Subsequent to April 30,
2008, and at the time this report was prepared, at least one rating agency
further reduced the rating for CIFG-insured bonds to BB and MBIA-insured bonds
to A. As of April 30, 2008, at least one rating agency has placed XLCA-insured
bonds on "negative credit watch" and one or more rating agencies have placed
each of these insurers on "negative outlook", which may presage one or more
rating reductions for such insurer or insurers in the future. If one or more
insurers' ratings are reduced by these rating agencies, it would likely reduce
the effective rating of many of the bonds insured by that insurer or insurers.
It is important to note that municipal bonds historically have had a very low
rate of default.
During March 2008, the Nuveen Funds' Board of Directors/Trustees approved
changes to the investment policies of all of the Nuveen insured municipal
closed-end funds. The new policies require that (1) at least 80% of a Fund's net
assets must be invested in insured municipal bonds guaranteed by insurers rated
"A" or better by at least one rating agency at the time of purchase; (2) at
least 80% of a Fund's net assets must be invested in municipal bonds rated "AA"
or better by at least one rating agency (with or without insurance), deemed to
be of comparable quality by the Adviser, or backed by an escrow or trust
containing sufficient U.S. Government or Government agency
-----
7
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securities at the time of purchase; and (3) up to 20% of a Fund's net assets may
be invested in uninsured municipal bonds rated "A" to "BBB" by at least one
rating agency or deemed to be of comparable quality by the Adviser at the time
of purchase. These policy changes are designed to increase portfolio manager
flexibility and retain the insured nature of the Funds' investment portfolios
for current and future environments. Some Funds may require shareholder approval
prior to implementing these policy changes.
RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED MARKETS
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the preferred shares issued by these Funds than there
were offers to buy. This meant that these auctions "failed to clear" and that
many or all auction preferred shareholders who wanted to sell their shares in
these auctions were unable to do so. This decline in liquidity in auction
preferred shares did not lower the credit quality of these shares, and auction
preferred shareholders unable to sell their shares received distributions at the
"maximum rate" applicable to failed auctions as calculated in accordance with
the pre-established terms of the auction preferred shares. At the time this
report was prepared, the Funds' managers could not predict when future auctions
might succeed in attracting sufficient buyers for the shares offered, if ever.
The Funds' managers are working diligently to refund the auction preferred
shares, and have made progress in these efforts, but at present there is no
assurance that these efforts will succeed. These developments generally do not
affect the management or investment policies of these Funds. However, one
implication of these auction failures for common shareholders is that the Funds'
cost of leverage will likely be higher, at least temporarily, than it otherwise
would have been had the auctions continued to be successful. As a result, the
Funds' future common share earnings may be lower than they otherwise would have
been.
For current, up-to-date information, please visit the Nuveen CEF Auction Rate
Preferred Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
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8
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Common Share
Dividend and Share Price
INFORMATION
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As previously noted, all of the Funds in this report use leverage to potentially
enhance opportunities for additional income for common shareholders. This
strategy continued to provide support for the Funds' income streams during this
turbulent period. As a result, the dividends of all six Funds remained stable
throughout the six-month reporting period ended April 30, 2008.
Due to capital gains generated by normal portfolio activity, common shareholders
of NIO received a long-term capital gains distribution of $0.0019 per share at
the end of December 2007.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's common share NAV. Conversely, if a Fund has cumulatively paid
dividends in excess of its earnings, the excess constitutes negative UNII that
is likewise reflected in the Fund's common share NAV. Each Fund will, over time,
pay all of its net investment income as dividends to shareholders. As of April
30, 2008, all of the Funds in this report had positive UNII balances, based upon
our best estimate, for tax purposes and negative UNII balances for financial
statement purposes.
As of April 30, 2008, the Funds' common share prices were trading at discounts
to their common share NAVs as shown in the accompanying chart:
4/30/08 Six-Month
Discount Average Discount
NQI -5.57% -6.12%
NIO -6.40% -8.45%
NIF -8.93% -10.32%
NPX -10.18% -10.80%
NVG -8.92% -10.07%
NEA -2.57% -3.00%
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9
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NQI | Nuveen Insured
Performance | Quality Municipal
OVERVIEW | Fund, Inc.
as of April 30, 2008
Credit Quality (as a % of total investments)(1)
PIE CHART:
Insured 78%
U.S. Guaranteed 19%
GNMA Guaranteed 3%
BAR CHART:
2007-2008 Monthly Tax-Free Dividends Per Share
May $0.0605
Jun 0.0605
Jul 0.0605
Aug 0.0605
Sep 0.0605
Oct 0.0605
Nov 0.0605
Dec 0.0605
Jan 0.0605
Feb 0.0605
Mar 0.0605
Apr 0.0605
LINE CHART:
Share Price Performance -- Weekly Closing Price
5/01/07 $14.71
14.71
14.63
14.62
14.59
14.46
14.33
14.09
14.03
14.11
13.97
13.80
13.73
13.88
13.95
13.80
13.47
13.66
13.70
14.27
14.03
13.92
13.84
13.94
13.72
13.80
13.60
13.73
13.50
13.29
13.30
13.44
13.68
13.40
13.20
13.34
14.10
14.40
13.94
14.14
14.15
14.26
13.55
13.58
13.12
13.68
13.20
13.03
13.32
13.36
13.26
13.36
13.33
4/30/08 13.40
Fund Snapshot
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Common Share Price $ 13.40
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Common Share Net Asset Value $ 14.19
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Premium/(Discount) to NAV -5.57%
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Market Yield 5.42%
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Taxable-Equivalent Yield(2) 7.53%
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Net Assets Applicable to Common Shares ($000) $543,235
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 17.06
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 12.27
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 12/19/90)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 1.10% -2.19%
--------------------------------------------------------------------------------
1-Year -3.88% -2.08%
--------------------------------------------------------------------------------
5-Year 1.57% 3.43%
--------------------------------------------------------------------------------
10-Year 4.90% 5.29%
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States
(as a % of total investments)
--------------------------------------------------------------------------------
California 19.4%
--------------------------------------------------------------------------------
Texas 10.9%
--------------------------------------------------------------------------------
Illinois 9.6%
--------------------------------------------------------------------------------
New York 9.6%
--------------------------------------------------------------------------------
Washington 7.9%
--------------------------------------------------------------------------------
Florida 4.6%
--------------------------------------------------------------------------------
Nevada 3.6%
--------------------------------------------------------------------------------
Kentucky 3.6%
--------------------------------------------------------------------------------
Louisiana 3.0%
--------------------------------------------------------------------------------
Ohio 2.6%
--------------------------------------------------------------------------------
Colorado 2.5%
--------------------------------------------------------------------------------
Arizona 2.0%
--------------------------------------------------------------------------------
Hawaii 2.0%
--------------------------------------------------------------------------------
Other 18.7%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 19.8%
--------------------------------------------------------------------------------
Transportation 19.7%
--------------------------------------------------------------------------------
U.S. Guaranteed 19.3%
--------------------------------------------------------------------------------
Tax Obligation/General 12.7%
--------------------------------------------------------------------------------
Health Care 9.7%
--------------------------------------------------------------------------------
Utilities 8.0%
--------------------------------------------------------------------------------
Other 10.8%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
2008. Please see the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
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10
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NIO | Nuveen Insured
Performance | Municipal Opportunity
OVERVIEW | Fund, Inc.
as of April 30, 2008
Credit Quality (as a % of total investments)(1)
PIE CHART:
Insured 71%
U.S. Guaranteed 29%
BAR CHART:
2007-2008 Monthly Tax-Free Dividends Per Share(3)
May $0.0615
Jun 0.0615
Jul 0.0615
Aug 0.0615
Sep 0.0615
Oct 0.0580
Nov 0.0580
Dec 0.0580
Jan 0.0580
Feb 0.0580
Mar 0.0580
Apr 0.0580
LINE CHART:
Share Price Performance -- Weekly Closing Price
5/01/07 $14.92
14.95
14.94
14.99
14.82
14.80
14.58
14.15
14.22
14.25
14.12
14.10
14.13
14.18
14.11
13.71
14.05
14.01
14.12
14.37
14.20
14.02
14.12
13.91
13.62
13.64
13.60
13.58
13.30
13.12
13.39
13.29
13.29
13.16
13.26
13.19
13.83
13.86
13.73
14.30
14.20
14.51
13.52
13.47
13.04
13.49
12.99
12.85
13.30
13.23
13.41
13.45
13.61
4/30/08 13.60
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $ 13.60
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.53
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -6.40%
--------------------------------------------------------------------------------
Market Yield 5.12%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 7.11%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $1,178,785
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.11
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.44
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 9/19/91)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 2.93% -1.05%
--------------------------------------------------------------------------------
1-Year -3.90% -0.86%
--------------------------------------------------------------------------------
5-Year 2.61% 3.72%
--------------------------------------------------------------------------------
10-Year 4.72% 5.35%
--------------------------------------------------------------------------------
States
(as a % of total investments)
--------------------------------------------------------------------------------
California 20.3%
--------------------------------------------------------------------------------
Texas 9.9%
--------------------------------------------------------------------------------
Alabama 6.8%
--------------------------------------------------------------------------------
Nevada 5.0%
--------------------------------------------------------------------------------
New York 4.6%
--------------------------------------------------------------------------------
Louisiana 4.5%
--------------------------------------------------------------------------------
Colorado 4.4%
--------------------------------------------------------------------------------
Michigan 4.0%
--------------------------------------------------------------------------------
Florida 3.9%
--------------------------------------------------------------------------------
Illinois 3.8%
--------------------------------------------------------------------------------
Massachusetts 3.3%
--------------------------------------------------------------------------------
South Carolina 3.2%
--------------------------------------------------------------------------------
Ohio 2.6%
--------------------------------------------------------------------------------
Indiana 2.2%
--------------------------------------------------------------------------------
Pennsylvania 2.0%
--------------------------------------------------------------------------------
Other 19.5%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 28.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 19.2%
--------------------------------------------------------------------------------
Transportation 13.4%
--------------------------------------------------------------------------------
Tax Obligation/General 12.0%
--------------------------------------------------------------------------------
Utilities 8.5%
--------------------------------------------------------------------------------
Health Care 6.8%
--------------------------------------------------------------------------------
Water and Sewer 6.1%
--------------------------------------------------------------------------------
Other 5.5%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
2008. Please see the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007
of $0.0019 per share.
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11
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NIF | Nuveen Premier
Performance | Insured Municipal
OVERVIEW | Income Fund, Inc.
as of April 30, 2008
Credit Quality (as a % of total investments)(1)
PIE CHART:
Insured 78%
U.S. Guaranteed 21%
GNMA Guaranteed 1%
BAR CHART:
2007-2008 Monthly Tax-Free Dividends Per Share
May $0.0610
Jun 0.0570
Jul 0.0570
Aug 0.0570
Sep 0.0570
Oct 0.0530
Nov 0.0530
Dec 0.0530
Jan 0.0530
Feb 0.0530
Mar 0.0530
Apr 0.0530
LINE CHART:
Share Price Performance -- Weekly Closing Price
5/01/07 $14.78
14.78
14.83
14.92
14.84
14.83
14.24
13.87
13.78
13.81
13.84
13.72
13.85
13.80
13.79
13.72
13.44
13.61
13.74
14.04
13.82
13.75
13.78
13.67
13.45
13.31
13.24
13.30
12.92
12.53
12.75
12.93
13.03
12.81
12.81
13.05
13.58
13.63
13.41
13.62
13.48
13.62
12.91
13.14
12.54
13.02
12.65
12.64
13.08
13.15
13.17
13.14
13.04
4/30/08 13.06
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $ 13.06
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.34
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.93%
--------------------------------------------------------------------------------
Market Yield 4.87%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 6.76%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $278,488
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 13.95
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.57
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 12/19/91)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 0.96% -1.62%
--------------------------------------------------------------------------------
1-Year -6.80% -1.31%
--------------------------------------------------------------------------------
5-Year 1.55% 3.50%
--------------------------------------------------------------------------------
10-Year 4.34% 5.07%
--------------------------------------------------------------------------------
States
(as a % of total investments)
--------------------------------------------------------------------------------
California 22.1%
--------------------------------------------------------------------------------
Illinois 10.9%
--------------------------------------------------------------------------------
Washington 10.9%
--------------------------------------------------------------------------------
Texas 6.6%
--------------------------------------------------------------------------------
Colorado 6.4%
--------------------------------------------------------------------------------
New York 4.2%
--------------------------------------------------------------------------------
Nevada 3.0%
--------------------------------------------------------------------------------
Michigan 2.8%
--------------------------------------------------------------------------------
Oregon 2.7%
--------------------------------------------------------------------------------
Georgia 2.6%
--------------------------------------------------------------------------------
Hawaii 2.4%
--------------------------------------------------------------------------------
Indiana 2.3%
--------------------------------------------------------------------------------
Florida 2.3%
--------------------------------------------------------------------------------
Tennessee 2.3%
--------------------------------------------------------------------------------
Other 18.5%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/General 23.7%
--------------------------------------------------------------------------------
U.S. Guaranteed 20.7%
--------------------------------------------------------------------------------
Transportation 17.2%
--------------------------------------------------------------------------------
Tax Obligation/Limited 16.1%
--------------------------------------------------------------------------------
Health Care 6.7%
--------------------------------------------------------------------------------
Utilities 6.5%
--------------------------------------------------------------------------------
Water and Sewer 5.1%
--------------------------------------------------------------------------------
Other 4.0%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
2008. Please see the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
-----
12
-----
NPX | Nuveen Insured
Performance | Premium Income
OVERVIEW | Municipal Fund 2
as of April 30, 2008
Credit Quality (as a % of total investments)(1)
PIE CHART:
Insured 77%
U.S. Guaranteed 22%
GNMA Guaranteed 1%
BAR CHART:
2007-2008 Monthly Tax-Free Dividends Per Share
May $0.0540
Jun 0.0540
Jul 0.0540
Aug 0.0540
Sep 0.0515
Oct 0.0515
Nov 0.0515
Dec 0.0515
Jan 0.0515
Feb 0.0515
Mar 0.0515
Apr 0.0515
LINE CHART:
Share Price Performance -- Weekly Closing Price
5/01/07 $13.20
13.26
13.24
13.28
13.14
13.02
12.88
12.62
12.60
12.78
12.67
12.54
12.42
12.55
12.70
12.41
12.35
12.46
12.59
12.67
12.54
12.49
12.45
12.34
12.28
12.45
12.21
12.18
11.75
11.55
11.74
12.00
12.03
11.87
11.74
12.17
12.51
12.56
12.48
12.57
12.58
12.53
11.84
11.84
11.56
12.00
11.45
11.49
11.66
11.81
11.99
11.97
11.90
4/30/08 11.91
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $ 11.91
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.26
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -10.18%
--------------------------------------------------------------------------------
Market Yield 5.19%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 7.21%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $495,189
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 14.78
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.49
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 7/22/93)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 0.31% -1.16%
--------------------------------------------------------------------------------
1-Year -4.65% -1.06%
--------------------------------------------------------------------------------
5-Year 1.61% 3.57%
--------------------------------------------------------------------------------
10-Year 5.32% 5.35%
--------------------------------------------------------------------------------
States
(as a % of total investments)
--------------------------------------------------------------------------------
California 17.0%
--------------------------------------------------------------------------------
Texas 10.1%
--------------------------------------------------------------------------------
New York 8.3%
--------------------------------------------------------------------------------
Pennsylvania 7.6%
--------------------------------------------------------------------------------
Colorado 6.0%
--------------------------------------------------------------------------------
Hawaii 4.7%
--------------------------------------------------------------------------------
Washington 4.3%
--------------------------------------------------------------------------------
Louisiana 3.9%
--------------------------------------------------------------------------------
Wisconsin 3.8%
--------------------------------------------------------------------------------
New Jersey 2.9%
--------------------------------------------------------------------------------
Alabama 2.5%
--------------------------------------------------------------------------------
Georgia 2.4%
--------------------------------------------------------------------------------
North Dakota 2.3%
--------------------------------------------------------------------------------
Nebraska 2.2%
--------------------------------------------------------------------------------
Oregon 2.0%
--------------------------------------------------------------------------------
Other 20.0%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 21.9%
--------------------------------------------------------------------------------
Utilities 19.4%
--------------------------------------------------------------------------------
Tax Obligation/Limited 15.0%
--------------------------------------------------------------------------------
Transportation 10.7%
--------------------------------------------------------------------------------
Tax Obligation/General 9.8%
--------------------------------------------------------------------------------
Water and Sewer 7.9%
--------------------------------------------------------------------------------
Education and Civic Organizations 7.0%
--------------------------------------------------------------------------------
Health Care 5.5%
--------------------------------------------------------------------------------
Other 2.8%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
2008. Please see the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
-----
13
-----
NVG | Nuveen Insured
Performance | Dividend Advantage
OVERVIEW | Municipal Fund
as of April 30, 2008
Credit Quality (as a % of total investments)(1)
PIE CHART:
Insured 63%
U.S. Guaranteed 29%
AAA (Uninsured) 3%
AA (Uninsured) 4%
BBB (Uninsured) 1%
BAR CHART:
2007-2008 Monthly Tax-Free Dividends Per Share
May $0.0640
Jun 0.0605
Jul 0.0605
Aug 0.0605
Sep 0.0605
Oct 0.0575
Nov 0.0575
Dec 0.0575
Jan 0.0575
Feb 0.0575
Mar 0.0575
Apr 0.0575
LINE CHART:
Share Price Performance -- Weekly Closing Price
5/01/07 $15.37
15.42
15.45
15.30
15.08
15.04
14.45
14.06
14.01
14.12
14.04
13.85
13.72
13.79
13.97
13.72
13.63
13.90
13.95
14.26
14.12
14.01
14.00
13.72
13.77
13.95
14.00
13.43
13.13
13.04
13.33
13.39
13.44
13.17
13.00
13.35
13.89
13.92
13.74
13.95
13.92
14.08
13.34
13.38
13.10
13.43
13.04
13.00
13.30
13.27
13.55
13.62
13.40
4/30/08 13.47
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $ 13.47
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.79
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.92%
--------------------------------------------------------------------------------
Market Yield 5.12%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 7.11%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 440,873
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 13.03
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.19
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 3/25/02)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 0.78% 0.31%
--------------------------------------------------------------------------------
1-Year -7.11% 1.16%
--------------------------------------------------------------------------------
5-Year 3.82% 4.51%
--------------------------------------------------------------------------------
Since Inception 4.38% 6.48%
--------------------------------------------------------------------------------
States
(as a % of total investments)
--------------------------------------------------------------------------------
Texas 16.3%
--------------------------------------------------------------------------------
California 11.8%
--------------------------------------------------------------------------------
Indiana 10.3%
--------------------------------------------------------------------------------
Washington 8.0%
--------------------------------------------------------------------------------
Illinois 7.8%
--------------------------------------------------------------------------------
Florida 7.4%
--------------------------------------------------------------------------------
Tennessee 6.2%
--------------------------------------------------------------------------------
Louisiana 3.7%
--------------------------------------------------------------------------------
Colorado 3.6%
--------------------------------------------------------------------------------
New York 3.1%
--------------------------------------------------------------------------------
Alabama 2.7%
--------------------------------------------------------------------------------
Other 19.1%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 29.4%
--------------------------------------------------------------------------------
Transportation 13.8%
--------------------------------------------------------------------------------
Tax Obligation/General 13.2%
--------------------------------------------------------------------------------
Tax Obligation/Limited 13.2%
--------------------------------------------------------------------------------
Utilities 8.3%
--------------------------------------------------------------------------------
Health Care 7.5%
--------------------------------------------------------------------------------
Education and Civic Organizations 6.9%
--------------------------------------------------------------------------------
Other 7.7%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
2008. Please see the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
-----
14
-----
NEA | Nuveen Insured
Performance | Tax-Free Advantage
OVERVIEW | Municipal Fund
as of April 30, 2008
Credit Quality (as a % of total investments)(1)
PIE CHART:
Insured 64%
U.S. Guaranteed 28%
AAA (Uninsured) 2%
AA (Uninsured) 2%
A (Uninsured) 2%
BBB (Uninsured) 2%
BAR CHART:
2007-2008 Monthly Tax-Free Dividends Per Share
May $0.0590
Jun 0.0590
Jul 0.0590
Aug 0.0590
Sep 0.0590
Oct 0.0590
Nov 0.0590
Dec 0.0590
Jan 0.0590
Feb 0.0590
Mar 0.0590
Apr 0.0590
LINE CHART:
Share Price Performance -- Weekly Closing Price
5/01/07 $14.66
14.66
14.69
14.71
14.76
15.00
14.57
14.67
14.36
14.48
14.70
14.52
14.62
14.86
14.94
14.85
13.85
13.80
14.33
14.47
14.41
14.18
14.20
14.33
14.38
14.30
14.03
14.19
13.79
13.41
13.42
14.15
14.15
14.26
14.05
14.10
14.78
14.82
14.76
14.73
15.11
15.01
14.00
14.08
13.59
13.70
13.56
13.46
13.85
14.25
14.09
14.10
13.97
4/30/08 14.03
Fund Snapshot
--------------------------------------------------------------------------------
Common Share Price $ 14.03
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.40
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -2.57%
--------------------------------------------------------------------------------
Market Yield 5.05%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 7.01%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 266,808
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.78
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.53
--------------------------------------------------------------------------------
Average Annual Total Return
(Inception 11/21/02)
--------------------------------------------------------------------------------
On Share Price On NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 0.58% 0.32%
--------------------------------------------------------------------------------
1-Year 1.30% 1.60%
--------------------------------------------------------------------------------
5-Year 4.26% 4.93%
--------------------------------------------------------------------------------
Since Inception 4.37% 5.64%
--------------------------------------------------------------------------------
States
(as a % of total investments)
--------------------------------------------------------------------------------
California 19.2%
--------------------------------------------------------------------------------
Texas 8.6%
--------------------------------------------------------------------------------
Michigan 7.6%
--------------------------------------------------------------------------------
New York 7.0%
--------------------------------------------------------------------------------
Indiana 6.3%
--------------------------------------------------------------------------------
Washington 5.9%
--------------------------------------------------------------------------------
Alabama 5.6%
--------------------------------------------------------------------------------
Pennsylvania 4.9%
--------------------------------------------------------------------------------
South Carolina 4.7%
--------------------------------------------------------------------------------
Wisconsin 4.3%
--------------------------------------------------------------------------------
Colorado 3.7%
--------------------------------------------------------------------------------
Arizona 3.6%
--------------------------------------------------------------------------------
Other 18.6%
--------------------------------------------------------------------------------
Industries
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 28.4%
--------------------------------------------------------------------------------
Tax Obligation/Limited 23.0%
--------------------------------------------------------------------------------
Tax Obligation/General 14.1%
--------------------------------------------------------------------------------
Health Care 11.3%
--------------------------------------------------------------------------------
Utilities 9.3%
--------------------------------------------------------------------------------
Transportation 6.4%
--------------------------------------------------------------------------------
Other 7.5%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
2008. Please see the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
-----
15
-----
NQI | Nuveen Insured Quality Municipal Fund, Inc.
| Portfolio of INVESTMENTS
April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Alabama - 1.6% (1.0% of Total Investments)
$ 1,135 Birmingham Waterworks and Sewerage Board, Alabama, Water and 1/13 at 100.00 AAA $ 1,239,499
Sewerage Revenue Bonds, Series 2002B, 5.250%, 1/01/20
(Pre-refunded 1/01/13) - MBIA Insured
7,500 Huntsville Healthcare Authority, Alabama, Revenue Bonds, Series 6/15 at 100.00 AAA 7,611,375
2005A, 5.000%, 6/01/24 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,635 Total Alabama 8,850,874
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 3.4% (2.0% of Total Investments)
3,670 Mesa, Arizona, Utility System Revenue Bonds, Reset Option Longs, 7/17 at 100.00 Aaa 2,883,556
Series 11032-11034, 7.450%, 7/01/31 - FSA Insured (IF)
9,200 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/12 at 100.00 AA- 8,881,864
Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 - FGIC
Insured (Alternative Minimum Tax)
8,755 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic Plaza, No Opt. Call AA 6,799,221
Series 2005B, 0.000%, 7/01/39 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
21,625 Total Arizona 18,564,641
------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 0.8% (0.5% of Total Investments)
4,250 University of Arkansas, Fayetteville, Revenue Bonds, Medical 11/14 at 100.00 Aaa 4,390,420
Sciences Campus, Series 2004B, 5.000%, 11/01/24 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
California - 32.6% (19.4% of Total Investments)
California Department of Water Resources, Water System Revenue
Bonds, Central Valley Project, Series 2005AC:
4,045 5.000%, 12/01/24 - MBIA Insured 12/14 at 100.00 AAA 4,186,980
4,000 5.000%, 12/01/26 - MBIA Insured 12/14 at 100.00 AAA 4,119,640
1,275 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aaa 1,353,693
Occidental College, Series 2005A, 5.250%,
10/01/23 - MBIA Insured
7,115 California Infrastructure Economic Development Bank, First Lien 1/28 at 100.00 AAA 7,599,816
Revenue Bonds, San Francisco Bay Area Toll Bridge,
Series 2003A, 5.000%, 7/01/33 (Pre-refunded
1/01/28) - AMBAC Insured (UB)
13,175 California Pollution Control Financing Authority, Revenue 9/09 at 101.00 AAA 13,564,453
Refunding Bonds, Southern California Edison Company, Series
1999A, 5.450%, 9/01/29 - MBIA Insured
13,445 California State, General Obligation Bonds, Series 2002, 5.000%, 4/12 at 100.00 AAA 13,592,088
4/01/27 - AMBAC Insured
7,055 California State, General Obligation Bonds, Series 2002, 5.000%, 4/12 at 100.00 AAA 7,613,615
4/01/27 (Pre-refunded 4/01/12) - AMBAC Insured
5 California State, General Obligation Bonds, Series 2004, 5.000%, 4/14 at 100.00 AAA 5,066
4/01/31 - AMBAC Insured
3,745 California State, General Obligation Bonds, Series 2004, 5.000%, 4/14 at 100.00 AAA 4,123,844
4/01/31 (Pre-refunded 4/01/14) - AMBAC Insured
8,000 California, General Obligation Bonds, Series 2002, 5.000%, 10/12 at 100.00 AAA 8,078,560
10/01/32 - MBIA Insured
2,340 Cerritos Public Financing Authority, California, Tax Allocation 11/17 at 102.00 AAA 2,374,796
Revenue Bonds, Los Cerritos Redevelopment Projects, Series
2002A, 5.000%, 11/01/24 - AMBAC Insured
5,000 Clovis Unified School District, Fresno County, California, General No Opt. Call AA- 2,044,900
Obligation Bonds, Series 2001A, 0.000%, 8/01/25 - FGIC Insured
-----
16
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
California (continued)
Foothill/Eastern Transportation Corridor Agency, California, Toll
Road Revenue Refunding Bonds, Series 1999:
$ 22,985 0.000%, 1/15/24 - MBIA Insured 1/10 at 44.52 AAA $ 9,032,875
22,000 0.000%, 1/15/31 - MBIA Insured 1/10 at 29.11 AAA 5,456,440
50,000 0.000%, 1/15/37 - MBIA Insured 1/10 at 20.19 AAA 8,344,000
5,000 Garden Grove, California, Certificates of Participation, 3/12 at 101.00 AAA 5,054,900
Financing Project, Series 2002A, 5.125%, 3/01/32 -
AMBAC Insured
8,500 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A 8,182,440
Tobacco Settlement Asset-Backed
Revenue Bonds, Series 2005A, 5.000%, 6/01/35 - FGIC Insured (UB)
3,795 Kern Community College District, California, General Obligation 11/15 at 100.00 AAA 4,023,725
Bonds, Series 2005, 5.000%, 11/01/20 - FSA Insured
5,795 Kern Community College District, California, General Obligation No Opt. Call AAA 2,391,191
Bonds, Series 2006, 0.000%, 11/01/25 - FSA Insured
5,368 Moreno Valley Public Finance Authority, California, GNMA 1/12 at 105.00 Aaa 5,748,001
Collateralized Assisted Living Housing Revenue Bonds,
CDC Assisted Living Project, Series 2000A,
7.500%, 1/20/42
5,425 Ontario Redevelopment Financing Authority, San Bernardino County, 8/08 at 100.00 AAA 6,023,269
California, Revenue Bonds, Redevelopment Project 1,
Series 1993, 5.850%, 8/01/22 - MBIA Insured (ETM)
3,615 Pasadena Unified School District, Los Angeles County, California, 5/13 at 100.00 AAA 3,952,930
General Obligation Bonds, Series 2003D, 5.000%, 5/01/24
(Pre-refunded 5/01/13) - MBIA Insured
2,590 Riverside County Public Financing Authority, California, Tax 10/14 at 100.00 A- 2,548,482
Allocation Bonds, Multiple Projects, Series 2004,
5.000%, 10/01/25 - XLCA Insured
2,000 San Diego Redevelopment Agency, California, Subordinate Lien Tax 9/14 at 100.00 A- 2,079,060
Allocation Bonds, Centre City Project, Series 2004A,
5.000%, 9/01/21 - XLCA Insured
San Francisco Airports Commission, California, Revenue
Refunding Bonds, San Francisco International Airport,
Second Series 2001, Issue 27A:
7,200 5.125%, 5/01/21 - MBIA Insured (Alternative Minimum Tax) 5/11 at 100.00 AAA 7,208,928
12,690 5.250%, 5/01/31 - MBIA Insured (Alternative Minimum Tax) 5/11 at 100.00 AAA 12,523,253
San Francisco Bay Area Rapid Transit District, California, Sales
Tax Revenue Bonds, Series 2005A:
2,000 5.000%, 7/01/21 - MBIA Insured 7/15 at 100.00 AAA 2,103,240
3,655 5.000%, 7/01/22 - MBIA Insured 7/15 at 100.00 AAA 3,822,691
3,840 5.000%, 7/01/23 - MBIA Insured 7/15 at 100.00 AAA 4,011,341
8,965 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/17 at 100.00 AAA 8,248,697
Merged Area Redevelopment Project, Series 2006C, 4.250%,
8/01/30 - MBIA Insured (UB)
3,500 Saugus Union School District, Los Angeles County, California, No Opt. Call A+ 1,579,760
General Obligation Bonds, Series 2006, 0.000%, 8/01/23 -
FGIC Insured
1,000 Sierra Joint Community College District, Tahoe Truckee, 8/14 at 100.00 A+ 1,022,000
California, General Obligation Bonds, School Facilities
Improvement District 1, Series 2005A, 5.000%, 8/01/27 -
FGIC Insured
1,575 Sierra Joint Community College District, Western Nevada, 8/14 at 100.00 A+ 1,609,650
California, General Obligation Bonds, School Facilities
Improvement District 2, Series 2005A, 5.000%, 8/01/27 -
FGIC Insured
3,600 Ventura County Community College District, California, General 8/15 at 100.00 AAA 3,703,356
Obligation Bonds, Series 2005B, 5.000%, 8/01/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
254,298 Total California 177,327,680
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 4.2% (2.5% of Total Investments)
2,015 Board of Trustees of the University of Northern Colorado, Revenue 6/15 at 100.00 AAA 2,106,562
Bonds, Series 2005, 5.000%, 6/01/22 - FSA Insured
Denver City and County, Colorado, Airport Revenue Bonds, Series 2006:
5,365 5.000%, 11/15/23 - FGIC Insured (UB) 11/16 at 100.00 A+ 5,390,806
3,300 5.000%, 11/15/24 - FGIC Insured (UB) 11/16 at 100.00 A+ 3,300,792
4,335 5.000%, 11/15/25 - FGIC Insured (UB) 11/16 at 100.00 A+ 4,314,929
-----
17
-----
NQI | Nuveen Insured Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Colorado (continued)
$ 9,780 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AAA $ 2,336,735
Series 2000B, 0.000%, 9/01/32 - MBIA Insured
10,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call AAA 3,310,300
Series 2004A, 0.000%, 9/01/27 - MBIA Insured
1,250 Jefferson County School District R1, Colorado, General Obligation 12/14 at 100.00 AAA 1,292,638
Bonds, Series 2004, 5.000%, 12/15/24 - FSA Insured
1,000 University of Colorado, Enterprise System Revenue Bonds, Series 6/15 at 100.00 AA- 1,002,910
2005, 5.000%, 6/01/30 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
37,045 Total Colorado 23,055,672
------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 2.3% (1.4% of Total Investments)
8,000 Washington Convention Center Authority, District of Columbia, 10/08 at 101.00 AAA 8,171,520
Senior Lien Dedicated Tax Revenue Bonds, Series 1998, 5.000%,
10/01/21 (Pre-refunded 10/01/08) - AMBAC Insured
1,335 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 1,102,817
Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals
1606, 8.033%, 10/01/30 - AMBAC Insured (IF)
3,920 Washington DC Convention Center Authority, Dedicated Tax Revenue 10/16 at 100.00 AAA 3,066,342
Bonds, Residual Series 1730, 1731, 1736, 5.233%, 10/01/36 -
AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
13,255 Total District of Columbia 12,340,679
------------------------------------------------------------------------------------------------------------------------------------
Florida - 7.8% (4.6% of Total Investments)
3,450 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AAA 3,554,811
Series 2005, 5.000%, 10/01/24 - MBIA Insured
3,250 Florida State Board of Education, Full Faith and Credit Public 6/13 at 101.00 AAA 3,379,383
Education Capital Outlay Bonds, Series 2003J, 5.000%, 6/01/22 -
AMBAC Insured
20,000 Lee County, Florida, Airport Revenue Bonds, Series 2000A, 5.750%, 10/10 at 101.00 AAA 20,351,999
10/01/25 - FSA Insured (Alternative Minimum Tax)
4,115 Miami-Dade County Housing Finance Authority, Florida, Multifamily 7/11 at 100.00 AAA 4,144,134
Housing Revenue Bonds, Monterey Pointe Apartments, Series
2001-2A, 5.850%, 7/01/37 - FSA Insured (Alternative Minimum Tax)
7,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 A2 6,873,650
International Airport, Series 2002, 5.375%, 10/01/32 - FGIC
Insured (Alternative Minimum Tax)
3,780 Palm Beach County School Board, Florida, Certificates of 8/13 at 100.00 AAA 3,968,395
Participation, Series 2003A, 5.000%, 8/01/16 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
41,595 Total Florida 42,272,372
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 0.3% (0.2% of Total Investments)
1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/14 at 100.00 AAA 1,039,340
2004, 5.000%, 11/01/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
Hawaii - 3.3% (2.0% of Total Investments)
1,620 Hawaii County, Hawaii, General Obligation Bonds, Series 2003A, 7/13 at 100.00 AAA 1,688,656
5.000%, 7/15/21 - FSA Insured
Hawaii Department of Transportation, Airport System Revenue
Refunding Bonds, Series 2000B:
8,785 6.625%, 7/01/18 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 A2 9,114,086
7,000 6.000%, 7/01/19 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 A2 7,147,770
------------------------------------------------------------------------------------------------------------------------------------
17,405 Total Hawaii 17,950,512
------------------------------------------------------------------------------------------------------------------------------------
-----
18
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 16.1% (9.6% of Total Investments)
$ 9,500 Chicago, Illinois, Second Lien General Airport Revenue Refunding 1/10 at 101.00 AAA $ 9,721,730
Bonds, O'Hare International Airport, Series 1999, 5.500%,
1/01/15 - AMBAC Insured (Alternative Minimum Tax)
2,875 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 2,949,578
O'Hare International Airport, Series 2005A, 5.250%, 1/01/24 -
MBIA Insured
25,000 Illinois Health Facilities Authority, Revenue Bonds, Iowa Health 2/10 at 101.00 AAA 26,148,999
System, Series 2000, 5.875%, 2/15/30 - AMBAC Insured (ETM)
13,275 Illinois, General Obligation Bonds, Illinois FIRST Program, 5/11 at 100.00 AAA 13,770,556
Series 2001, 5.250%, 5/01/26 - FSA Insured
15,785 Illinois, General Obligation Bonds, Illinois FIRST Program, 4/12 at 100.00 AAA 16,438,499
Series 2002, 5.250%, 4/01/27 - FSA Insured
18,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 7,842,960
Bonds, McCormick Place Expansion Project, Series 2002A, 0.000%,
12/15/24 - MBIA Insured
10,000 University of Illinois, Certificates of Participation, Utility 8/11 at 100.00 AAA 10,766,500
Infrastructure Projects, Series 2001B, 5.250%, 8/15/21
(Pre-refunded 8/15/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
94,435 Total Illinois 87,638,822
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 2.3% (1.4% of Total Investments)
3,730 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 AAA 3,726,718
Series 2007A, 5.000%, 1/01/42 - MBIA Insured
7,790 Indiana Transportation Finance Authority, Highway Revenue Bonds, No Opt. Call AAA 8,995,347
Series 1990A, 7.250%, 6/01/15 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,520 Total Indiana 12,722,065
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.6% (0.3% of Total Investments)
3,000 Wichita, Kansas, Water and Sewerage Utility Revenue Bonds, Series 10/13 at 100.00 A1 3,107,070
2003, 5.000%, 10/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 6.1% (3.6% of Total Investments)
3,015 Kentucky Asset/Liability Commission, General Fund Revenue Project 5/15 at 100.00 AAA 3,077,441
Notes, First Series 2005, 5.000%, 5/01/25 - MBIA Insured
Kentucky Economic Development Finance Authority, Health System
Revenue Bonds, Norton Healthcare Inc., Series 2000C:
2,530 6.150%, 10/01/27 - MBIA Insured 10/13 at 101.00 AAA 2,785,707
12,060 6.150%, 10/01/28 - MBIA Insured 10/13 at 101.00 AAA 13,278,904
Kentucky Economic Development Finance Authority, Health System
Revenue Bonds, Norton Healthcare Inc., Series 2000C:
3,815 6.150%, 10/01/27 (Pre-refunded 10/01/13) - MBIA Insured 10/13 at 101.00 AAA 4,419,410
6,125 6.150%, 10/01/28 (Pre-refunded 10/01/13) - MBIA Insured 10/13 at 101.00 AAA 7,095,384
2,230 Kentucky State Property and Buildings Commission, Revenue Bonds, 8/15 at 100.00 AAA 2,464,016
Project 85, Series 2005, 5.000%, 8/01/23 (Pre-refunded 8/01/15)
- FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
29,775 Total Kentucky 33,120,862
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 4.2% (2.5% of Total Investments)
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006:
825 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 815,768
10,500 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 10,382,505
2,040 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA- 1,932,716
6,900 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA- 6,537,129
5 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AA- 4,211
Residuals 660-3, 5.082%, 5/01/41 - FGIC Insured (IF)
10 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AA- 8,422
Residuals 660-1, 5.082%, 5/01/41 - FGIC Insured (IF)
-----
19
-----
NQI | Nuveen Insured Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Louisiana (continued)
$ 3,225 Orleans Levee District, Louisiana, Levee District General 6/08 at 102.00 AAA $ 3,267,183
Obligation Bonds, Series 1986, 5.950%, 11/01/15 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
23,505 Total Louisiana 22,947,934
------------------------------------------------------------------------------------------------------------------------------------
Maine - 1.6% (0.9% of Total Investments)
555 Maine Health and Higher Educational Facilities Authority, Revenue 7/09 at 101.00 AAA 573,855
Bonds, Series 1999B, 6.000%, 7/01/29 - MBIA Insured
7,445 Maine Health and Higher Educational Facilities Authority, Revenue 7/09 at 101.00 AAA 7,848,817
Bonds, Series 1999B, 6.000%, 7/01/29 (Pre-refunded 7/01/09) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,000 Total Maine 8,422,672
------------------------------------------------------------------------------------------------------------------------------------
Maryland - 1.8% (1.1% of Total Investments)
2,100 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 AAA 2,064,657
Revenue Bonds, Western Maryland Health, Series 2006A, 4.750%,
7/01/36 - MBIA Insured (UB)
7,535 Maryland Transportation Authority, Airport Parking Revenue Bonds, 3/12 at 101.00 AAA 7,720,813
Baltimore-Washington International Airport Passenger Facility,
Series 2002B, 5.500%, 3/01/18 - AMBAC Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,635 Total Maryland 9,785,470
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 2.3% (1.3% of Total Investments)
5,000 Massachusetts Bay Transportation Authority, Senior Sales Tax 7/12 at 100.00 AAA 5,404,250
Revenue Refunding Bonds, Series 2002A, 5.000%, 7/01/27
(Pre-refunded 7/01/12) - FGIC Insured
1,155 Massachusetts Water Resources Authority, General Revenue Bonds, 2/17 at 100.00 Aaa 909,978
Series 2007, Residual Trust 7039, 4.069%, 8/01/46 - FSA
Insured (IF)
Massachusetts, Special Obligation Dedicated Tax Revenue Bonds,
Series 2004:
1,250 5.250%, 1/01/21 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 1,363,900
1,000 5.250%, 1/01/22 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 1,091,120
1,195 5.250%, 1/01/23 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 1,303,888
2,000 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 2,182,240
------------------------------------------------------------------------------------------------------------------------------------
11,600 Total Massachusetts 12,255,376
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 0.9% (0.5% of Total Investments)
4,750 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 4,773,988
Pollution Control Revenue Refunding Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 - MBIA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 0.0% (0.0% of Total Investments)
12 St. Louis Park, Minnesota, GNMA Mortgage-Backed Securities Program 10/08 at 100.00 Aaa 12,217
Single Family Residential Mortgage Revenue Bonds, Series
1991A, 7.250%, 4/20/23
------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 1.2% (0.7% of Total Investments)
2,715 Harrison County Wastewater Management District, Mississippi, No Opt. Call Baa3 (4) 3,353,079
Revenue Refunding Bonds, Wastewater Treatment Facilities, Series
1991B, 7.750%, 2/01/14 - FGIC Insured (ETM)
2,545 Harrison County Wastewater Management District, Mississippi, No Opt. Call Baa3 (4) 3,147,172
Wastewater Treatment Facilities Revenue Refunding Bonds, Series
1991A, 8.500%, 2/01/13 - FGIC Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
5,260 Total Mississippi 6,500,251
------------------------------------------------------------------------------------------------------------------------------------
-----
20
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 1.1% (0.6% of Total Investments)
$ 6,505 Lincoln Electric System, Nebraska, Electric System Revenue Bonds, 9/17 at 100.00 AA $ 5,873,885
Series 2007A, Residuals 07-1007-9, 3.465%, 9/01/37 - FGIC
Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 6.1% (3.6% of Total Investments)
33,700 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 26,926,299
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000, 5.375%, 1/01/40 - AMBAC Insured
5,720 Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, Reno 6/12 at 100.00 AAA 6,197,048
Transportation Rail Access Corridor Project, Series 2002,
5.125%, 6/01/32 (Pre-refunded 6/01/12) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
39,420 Total Nevada 33,123,347
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 1.1% (0.7% of Total Investments)
New Jersey Economic Development Authority, Revenue Bonds, Motor
Vehicle Surcharge, Series 2004A:
1,700 5.000%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 1,766,589
1,700 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 1,760,996
2,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 5.000%, 7/13 at 100.00 A 2,573,775
1/01/19 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
5,900 Total New Jersey 6,101,360
-----------------------------------------------------------------------------------------------------------------------------------
New Mexico - 1.2% (0.7% of Total Investments)
New Mexico Finance Authority, Public Project Revolving Fund Revenue
Bonds, Series 2004C:
1,420 5.000%, 6/01/22 - AMBAC Insured 6/14 at 100.00 AAA 1,476,530
3,290 5.000%, 6/01/23 - AMBAC Insured 6/14 at 100.00 AAA 3,396,037
1,530 New Mexico State University, Revenue Bonds, Series 2004, 5.000%, 4/14 at 100.00 AAA 1,578,134
4/01/23 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,240 Total New Mexico 6,450,701
------------------------------------------------------------------------------------------------------------------------------------
New York - 16.1% (9.6% of Total Investments)
11,760 Dormitory Authority of the State of New York, New York City, Lease 5/10 at 101.00 AAA 12,671,870
Revenue Bonds, Court Facilities, Series 1999, 5.750%, 5/15/30
(Pre-refunded 5/15/10) - AMBAC Insured
15,000 Dormitory Authority of the State of New York, Revenue Bonds, School 10/12 at 100.00 AAA 16,120,800
Districts Financing Program, Series 2002D, 5.500%, 10/01/17 -
MBIA Insured
4,070 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 3,796,944
Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
3,300 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 AAA 3,051,015
Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA Insured (UB)
5,000 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 A- 5,086,250
Revenue Bonds, Series 2006A, 5.000%, 12/01/25 - FGIC Insured
8,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AA- 8,162,240
Contract Refunding Bonds, Series 2002A, 5.000%, 7/01/25 - FGIC
Insured
6,945 New York Convention Center Development Corporation, Hotel Unit Fee 11/15 at 100.00 AAA 6,951,737
Revenue Bonds, Series 2005, 5.000%, 11/15/44 - AMBAC
Insured (UB)
10,150 New York State Housing Finance Agency, Mortgage Revenue Refunding 5/08 at 100.00 AAA 10,169,387
Bonds, Housing Project, Series 1996A, 6.125%, 11/01/20 - FSA
Insured
4,200 New York State Mortgage Agency, Homeowner Mortgage Revenue Bonds, 10/09 at 100.00 AAA 4,232,466
Series 82, 5.550%, 10/01/19 - MBIA Insured (Alternative
Minimum Tax)
6,595 New York State Thruway Authority, State Personal Income Tax Revenue 3/15 at 100.00 AAA 6,851,018
Bonds, Series 2005A, 5.000%, 3/15/25 - FSA Insured
-----
21
-----
NQI | Nuveen Insured Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
New York (continued)
New York State Urban Development Corporation, Service Contract
Revenue Bonds, Series 2005B:
$ 2,460 5.000%, 3/15/24 - FSA Insured 3/15 at 100.00 AAA $ 2,562,926
2,465 5.000%, 3/15/25 - FSA Insured 3/15 at 100.00 AAA 2,560,691
5,000 Triborough Bridge and Tunnel Authority, New York, Subordinate Lien 11/13 at 100.00 Aa3 5,011,850
General Purpose Revenue Bonds, Series 2003A, 5.000%, 11/15/32 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
84,945 Total New York 87,229,194
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 4.4% (2.6% of Total Investments)
7,000 Cleveland State University, Ohio, General Receipts Bonds, Series 6/14 at 100.00 A 7,410,130
2004, 5.250%, 6/01/19 - FGIC Insured
9,200 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series 2006, 12/16 at 100.00 Aaa 8,311,556
4.250%, 12/01/32 - AMBAC Insured (UB)
5,000 Lorain County, Ohio, Health Facilities Revenue Bonds, Catholic 9/09 at 102.00 AAA 5,199,850
Healthcare Partners, Series 1999A, 5.500%, 9/01/29 - AMBAC Insured
3,065 Oak Hills Local School District, Hamilton County, Ohio, General 12/15 at 100.00 AAA 3,196,458
Obligation Bonds, Series 2005, 5.000%, 12/01/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
24,265 Total Ohio 24,117,994
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 0.4% (0.3% of Total Investments)
2,250 Oklahoma Capitol Improvement Authority, State Facilities Revenue 7/15 at 100.00 AAA 2,311,200
Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 2.8% (1.7% of Total Investments)
3,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage Revenue 12/15 at 100.00 AAA 3,081,810
Bonds, Series 2005A, 5.000%, 12/01/23 - MBIA Insured
Delaware County Authority, Pennsylvania, Revenue Bonds, Villanova
University, Series 2006:
3,260 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 3,355,257
1,600 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 1,639,008
5,400 Pennsylvania Public School Building Authority, Lease Revenue Bonds, 12/16 at 100.00 AAA 5,260,356
School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 -
FSA Insured (UB)
2,000 Pittsburgh Public Parking Authority, Pennsylvania, Parking Revenue 12/15 at 100.00 Baa3 2,022,560
Bonds, Series 2005B, 5.000%, 12/01/23 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
15,260 Total Pennsylvania 15,358,991
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 2.0% (1.2% of Total Investments)
2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/15 at 100.00 A3 2,482,275
2005RR, 5.000%, 7/01/22 - FGIC Insured
25,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call A+ 3,361,000
Bonds, Series 2007A, 0.000%, 8/01/42 - FGIC Insured
5,000 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call A- 5,209,850
Authority, Series 2003AA, 5.500%, 7/01/16 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
32,500 Total Puerto Rico 11,053,125
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 2.3% (1.4% of Total Investments)
3,000 Charleston County School District, South Carolina, General 2/14 at 100.00 AAA 3,113,580
Obligation Bonds, Series 2004A, 5.000%, 2/01/22 - AMBAC Insured
10,000 South Carolina Transportation Infrastructure Bank, Revenue Bonds, 10/16 at 100.00 A1 9,284,700
Series 2007A, 4.500%, 10/01/34 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
13,000 Total South Carolina 12,398,280
------------------------------------------------------------------------------------------------------------------------------------
-----
22
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 1.1% (0.7% of Total Investments)
Knox County Health, Educational and Housing Facilities Board,
Tennessee, Hospital Revenue Refunding Bonds, Covenant Health,
Series 2002A:
$ 7,500 0.000%, 1/01/24 - FSA Insured 1/13 at 52.75 AAA $ 3,120,075
5,000 0.000%, 1/01/25 - FSA Insured 1/13 at 49.71 AAA 1,954,050
2,750 0.000%, 1/01/26 - FSA Insured 1/13 at 46.78 AAA 1,007,683
------------------------------------------------------------------------------------------------------------------------------------
15,250 Total Tennessee 6,081,808
------------------------------------------------------------------------------------------------------------------------------------
Texas - 18.4% (10.9% of Total Investments)
8,000 Abilene Health Facilities Development Corporation, Texas, Hospital 9/08 at 100.00 AAA 8,005,920
Revenue Refunding and Improvement Bonds, Hendrick Medical Center
Project, Series 1995C, 6.150%, 9/01/25 - MBIA Insured
1,595 Austin, Texas, Combined Utility System Revenue Refunding Bonds, 5/08 at 100.00 AAA 1,597,201
Series 1997, 5.125%, 11/15/20 - FSA Insured
3,135 Corpus Christi, Texas, Utility System Revenue Bonds, Series 2004, 7/14 at 100.00 AAA 3,371,379
5.250%, 7/15/20 - FSA Insured
3,000 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 A+ 3,102,810
Refunding and Improvement Bonds, Series 2001A, 5.750%, 11/01/13 -
FGIC Insured (Alternative Minimum Tax)
3,735 Grand Prairie Independent School District, Dallas County, Texas, 2/13 at 100.00 AAA 4,081,048
General Obligation Bonds, Series 2003, 5.125%, 2/15/31
(Pre-refunded 2/15/13) - FSA Insured
1,035 Harris County Hospital District, Texas, Revenue Refunding Bonds, No Opt. Call AAA 1,092,598
Series 1990, 7.400%, 2/15/10 - AMBAC Insured
285 Harris County Hospital District, Texas, Revenue Refunding Bonds, No Opt. Call AAA 298,660
Series 1990, 7.400%, 2/15/10 - AMBAC Insured (ETM)
5,000 Houston, Texas, First Lien Combined Utility System Revenue Bonds, 5/14 at 100.00 AA 5,103,550
Series 2004A, 5.250%, 5/15/24 - FGIC Insured
4,500 Houston, Texas, General Obligation Public Improvement Bonds, Series 3/11 at 100.00 AAA 4,644,900
2001A, 5.000%, 3/01/22 - FSA Insured
17,000 Houston, Texas, Junior Lien Water and Sewerage System Revenue No Opt. Call AAA 19,818,429
Refunding Bonds, Series 2002A, 5.750%, 12/01/32 - FSA Insured
(ETM)
4,685 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/10 at 100.00 AAA 4,812,666
Series 2000A, 5.500%, 7/01/19 - FSA Insured (Alternative Minimum
Tax)
19,200 Jefferson County Health Facilities Development Corporation, Texas, 8/11 at 100.00 AAA 19,568,832
FHA-Insured Mortgage Revenue Bonds, Baptist Hospital of Southeast
Texas, Series 2001, 5.400%, 8/15/31 - AMBAC Insured
2,000 Laredo Independent School District Public Facilities Corporation, 8/11 at 100.00 AAA 2,019,560
Texas, Lease Revenue Bonds, Series 2004A, 5.000%, 8/01/24 - AMBAC
Insured
22,045 North Central Texas Health Facilities Development Corporation, 8/12 at 101.00 AAA 22,327,395
Revenue Bonds, Children's Medical Center of Dallas, Series 2002,
5.250%, 8/15/32 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
95,215 Total Texas 99,844,948
------------------------------------------------------------------------------------------------------------------------------------
Washington - 13.3% (7.9% of Total Investments)
10,730 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 10,808,222
Consolidated System Revenue Refunding Bonds, Series 2001C, 5.650%,
7/01/32 - MBIA Insured (Alternative Minimum Tax)
15,025 Seattle Housing Authority, Washington, GNMA Collateralized Mortgage 11/11 at 105.00 AAA 16,169,154
Loan Low Income Housing Assistance Revenue Bonds, Park Place
Project, Series 2000A, 7.000%, 5/20/42
4,550 Seattle Housing Authority, Washington, GNMA Collateralized Mortgage 9/11 at 102.00 AAA 4,767,035
Loan Low Income Housing Assistance Revenue Bonds, RHF/Esperanza
Apartments Project, Series 2000A, 6.125%, 3/20/42 (Alternative
Minimum Tax)
-----
23
-----
NQI | Nuveen Insured Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Washington (continued)
$ 5,000 Seattle, Washington, Municipal Light and Power Revenue Bonds, Series 12/10 at 100.00 AAA $ 5,225,100
2000, 5.250%, 12/01/21 - FSA Insured
11,750 Washington Public Power Supply System, Revenue Refunding Bonds, 7/08 at 102.00 AAA 12,027,418
Nuclear Project 1, Series 1998A, 5.125%, 7/01/17 - MBIA Insured
2,500 Washington State Healthcare Facilities Authority, Revenue Bonds, 12/09 at 101.00 AAA 2,643,037
Providence Services, Series 1999, 5.375%, 12/01/19 (Pre-refunded
12/01/09) - MBIA Insured
21,510 Washington State, Motor Vehicle Fuel Tax General Obligation Bonds, No Opt. Call AA+ 7,640,567
Series 2002-03C, 0.000%, 6/01/28 - MBIA Insured (UB)
10,000 Washington State, General Obligation Bonds, Series R-2003A, 5.000%, 1/12 at 100.00 AAA 10,394,700
1/01/19 - MBIA Insured
2,250 Washington, Certificates of Participation, Washington Convention and 7/09 at 100.00 AAA 2,304,788
Trade Center, Series 1999, 5.250%, 7/01/14 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
83,315 Total Washington 71,980,021
------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 2.5% (1.5% of Total Investments)
12,845 West Virginia Water Development Authority, Infrastructure Revenue 10/10 at 100.00 AAA 13,751,729
Bonds, Infrastructure and Jobs Development Council Program, Series
2000A, 5.500%, 10/01/39 (Pre-refunded 10/01/10) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 0.7% (0.4% of Total Investments)
1,635 Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 11/14 at 100.00 Aaa 1,802,310
5.000%, 11/01/26 (Pre-refunded 11/01/14) - FSA Insured
545 Green Bay, Wisconsin, Water System Revenue Bonds, Series 2004, 11/14 at 100.00 Aaa 562,075
5.000%, 11/01/26 - FSA Insured
1,675 Wisconsin Public Power Incorporated System, Power Supply System 7/15 at 100.00 AAA 1,684,916
Revenue Bonds, Series 2005A, 5.000%, 7/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
3,855 Total Wisconsin 4,049,301
------------------------------------------------------------------------------------------------------------------------------------
1,041,365 Total Long-Term Investments (cost $896,475,390) - 166.9% 906,804,801
------------------------------------------------------------------------------------------------------------------------------------
-----
24
-----
Principal
Amount (000) Description (1) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Short-Term Investments - 1.2% (0.7% of Total Investments)
$ 4,420 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, ROCS 660, VMIG-1 $ 4,420,000
Variable Rate Demand Obligations, 4.010%, 5/01/34 - FGIC Insured (5)
1,900 Massachusetts Turnpike Authority, Metropolitan Highway System A-1+ 1,900,000
Revenue Bonds, Senior Series 1997A, Trust 489, Variable Rate Demand
Obligations, 6.000%, 1/01/37 - MBIA Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
$ 6,320 Total Short-Term Investments (cost $6,320,000) 6,320,000
============------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $902,795,390) - 168.1% 913,124,801
---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (12.4)% (67,386,650)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 15,496,623
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (58.5)% (6) (318,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 543,234,774
=====================================================================================================================
As of April 30, 2008, all of the bonds in the Portfolio of Investments,
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.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please
see the Portfolio Manager's Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Preferred Shares, at Liquidation Value as a percentage of total
investments is (34.8)%.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
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25
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NIO | Nuveen Insured Municipal Opportunity Fund, Inc.
| Portfolio of INVESTMENTS
April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Alabama - 11.1% (6.8% of Total Investments)
$ 10,500 Birmingham Waterworks and Sewerage Board, Alabama, Water and 1/17 at 100.00 AAA $ 9,674,700
Sewerage Revenue Bonds, Series 2007A, 4.500%, 1/01/43 - AMBAC
Insured (UB)
11,175 Hoover Board of Education, Alabama, Capital Outlay Tax Anticipation 2/11 at 100.00 AAA 11,560,772
Warrants, Series 2001, 5.250%, 2/15/22 - MBIA Insured
Jefferson County, Alabama, Sewer Revenue Capital Improvement
Warrants, Series 1999A:
10,815 5.000%, 2/01/33 (Pre-refunded 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 11,150,373
9,790 5.000%, 2/01/33 (Pre-refunded 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 10,093,588
29,860 5.750%, 2/01/38 (Pre-refunded 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 30,952,279
2,500 Jefferson County, Alabama, Sewer Revenue Capital Improvement 8/12 at 100.00 AAA 2,718,325
Warrants, Series 2002B, 5.125%, 2/01/42 (Pre-refunded 8/01/12) -
FGIC Insured
Jefferson County, Alabama, Sewer Revenue Capital Improvement
Warrants, Series 2002D:
425 5.000%, 2/01/38 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 459,123
14,800 5.000%, 2/01/42 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 16,019,076
18,760 Jefferson County, Alabama, Sewer Revenue Capitol Improvement 2/11 at 101.00 AAA 20,074,888
Warrants, Series 2001A, 5.000%, 2/01/41 (Pre-refunded 2/01/11) -
FGIC Insured
10,195 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, Series 7/08 at 100.00 BB 6,638,984
1997A, 5.375%, 2/01/27 - FGIC Insured
5,240 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, Series 2/11 at 101.00 AAA 5,615,970
2003B, 5.000%, 2/01/41 (Pre-refunded 2/01/11) - FGIC Insured
6,000 University of Alabama, Tuscaloosa, General Revenue Bonds, Series 7/14 at 100.00 AAA 6,130,500
2004A, 5.000%, 7/01/29 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
130,060 Total Alabama 131,088,578
------------------------------------------------------------------------------------------------------------------------------------
Alaska - 1.5% (0.9% of Total Investments)
2,745 Alaska Housing Finance Corporation, Collateralized Veterans 12/09 at 100.00 AAA 2,778,489
Mortgage Program Bonds, First Series 1999A-1, 6.150%, 6/01/39
11,245 Alaska Housing Finance Corporation, General Mortgage Revenue Bonds, 6/09 at 100.00 AAA 11,326,639
Series 1999A, 6.050%, 6/01/39 - MBIA Insured
3,000 Alaska Student Loan Corporation, Student Loan Revenue Bonds, Series 7/08 at 100.00 AAA 3,014,250
1998A, 5.250%, 7/01/14 (Pre-refunded 7/01/08) - AMBAC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
16,990 Total Alaska 17,119,378
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 2.5% (1.5% of Total Investments)
Arizona State University, Certificates of Participation, Resh
Infrastructure Projects, Series 2005A:
2,000 5.000%, 9/01/25 - AMBAC Insured 3/15 at 100.00 AAA 2,049,880
2,000 5.000%, 9/01/27 - AMBAC Insured 3/15 at 100.00 AAA 2,042,820
1,000 Arizona State University, System Revenue Bonds, Series 2005, 7/15 at 100.00 AAA 1,008,320
5.000%, 7/01/27 - AMBAC Insured
-----
26
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Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Arizona (continued)
$ 1,000 Maricopa County Union High School District 210, Phoenix, Arizona, 7/14 at 100.00 AAA $ 1,100,300
General Obligation Bonds, Series 2004A, 5.000%, 7/01/22
(Pre-refunded 7/01/14) - FSA Insured
6,940 Mesa, Arizona, Utility System Revenue Bonds, Reset Option Longs, 7/17 at 100.00 Aaa 5,452,827
Series 11032-11034, 7.449%, 7/01/31 - FSA Insured (IF)
1,150 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/14 at 100.00 AAA 1,181,234
Wastewater System Revenue Bonds, Series 2004, 5.000%, 7/01/27 -
MBIA Insured
13,490 Phoenix Civic Improvement Corporation, Arizona, Junior Lien Water 7/15 at 100.00 AAA 13,751,841
System Revenue Bonds, Series 2005, 4.750%, 7/01/25 - MBIA Insured
2,905 Pima County Industrial Development Authority, Arizona, Lease 7/08 at 100.00 Aaa 2,996,653
Obligation Revenue Refunding Bonds, Tucson Electric Power Company,
Series 1988A, 7.250%, 7/15/10 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
30,485 Total Arizona 29,583,875
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Arkansas - 0.5% (0.3% of Total Investments)
3,660 Arkansas State University, Student Fee Revenue Bonds, Beebe Campus, 9/15 at 100.00 Aaa 3,664,209
Series 2006, 5.000%, 9/01/35 - AMBAC Insured
2,000 Pulaski County, Arkansas, Hospital Revenue Bonds, Arkansas 3/15 at 100.00 AAA 2,018,300
Children's Hospital, Series 2005, 5.000%, 3/01/25 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,660 Total Arkansas 5,682,509
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California - 32.9% (20.2% of Total Investments)
5,600 Alameda Corridor Transportation Authority, California, Subordinate No Opt. Call AAA 3,021,648
Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/20 - AMBAC
Insured
10,000 California Department of Veterans Affairs, Home Purchase Revenue 6/12 at 101.00 AAA 10,525,400
Bonds, Series 2002A, 5.300%, 12/01/21 - AMBAC Insured
California Department of Water Resources, Power Supply Revenue
Bonds, Series 2002A:
30,000 5.375%, 5/01/17 (Pre-refunded 5/01/12) - XLCA Insured 5/12 at 101.00 Aaa 33,111,898
25,000 5.375%, 5/01/18 (Pre-refunded 5/01/12) - AMBAC Insured 5/12 at 101.00 AAA 27,593,250
California Department of Water Resources, Water System Revenue
Bonds, Central Valley Project, Series 2005AC:
3,700 5.000%, 12/01/24 - MBIA Insured 12/14 at 100.00 AAA 3,829,870
2,820 5.000%, 12/01/27 - MBIA Insured 12/14 at 100.00 AAA 2,894,645
18,000 California Infrastructure Economic Development Bank, First Lien 1/28 at 100.00 AAA 19,226,520
Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A,
5.000%, 7/01/33 (Pre-refunded 1/01/28) - AMBAC Insured (UB)
4,500 California, General Obligation Bonds, Series 1998, 5.000%, 10/01/19 - 10/08 at 101.00 A+ 4,569,435
FGIC Insured
10,150 California, General Obligation Bonds, Series 2004, 5.000%, 6/01/31 - 12/14 at 100.00 AAA 10,297,378
AMBAC Insured
3,500 Coachella Valley Unified School District, Riverside County, 8/15 at 100.00 A- 3,516,625
California, General Obligation Bonds, Series 2005A, 5.000%,
8/01/26 - FGIC Insured
20,000 Cucamonga County Water District, San Bernardino County, California, 9/11 at 101.00 A+ 20,071,800
Certificates of Participation, Water Shares Purchase, Series 2000,
5.125%, 9/01/35 - FGIC Insured
5,750 East Bay Municipal Utility District, Alameda and Contra Costa 6/15 at 100.00 AAA 5,933,138
Counties, California, Water System Subordinated Revenue Bonds,
Series 2005A, 5.000%, 6/01/27 - MBIA Insured
10,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A 9,579,800
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
5.000%, 6/01/38 - FGIC Insured (UB)
1,520 Hayward Redevelopment Agency, California, Downtown Redevelopment 3/16 at 100.00 A- 1,508,600
Project Tax Allocation Bonds, Series 2006, 5.000%, 3/01/36 - XLCA
Insured
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27
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NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
California (continued)
$ 4,000 Kern Community College District, California, General Obligation 11/15 at 100.00 AAA $ 4,241,080
Bonds, Series 2005, 5.000%, 11/01/20 - FSA Insured
5,600 Kern Community College District, California, General Obligation No Opt. Call AAA 2,448,656
Bonds, Series 2006, 0.000%, 11/01/24 - FSA Insured
5,000 Long Beach Bond Financing Authority, California, Lease Revenue 11/11 at 101.00 AAA 5,043,800
Refunding Bonds, Long Beach Aquarium of the South Pacific, Series
2001, 5.250%, 11/01/30 - AMBAC Insured
2,740 Los Angeles Harbors Department, California, Revenue Bonds, Series 8/16 at 102.00 AA 2,725,971
2006A, 5.000%, 8/01/22 - FGIC Insured (Alternative Minimum Tax)
20,000 Los Angeles Unified School District, California, General Obligation 7/13 at 100.00 AAA 20,845,800
Bonds, Series 2003A, 5.000%, 7/01/21 - FSA Insured
2,000 Los Angeles Unified School District, California, General Obligation 7/15 at 100.00 AAA 2,089,240
Bonds, Series 2005A-2, 5.000%, 7/01/23 - MBIA Insured
3,000 Los Angeles Unified School District, California, General Obligation 7/16 at 100.00 AA- 3,132,690
Bonds, Series 2006F, 5.000%, 7/01/24 - FGIC Insured
6,205 Port of Oakland, California, Revenue Bonds, Series 2002L, 5.000%, 11/12 at 100.00 A+ 5,993,906
11/01/22 - FGIC Insured (Alternative Minimum Tax)
Poway Redevelopment Agency, California, Tax Allocation Bonds,
Paguay Redevelopment Project, Series 2001:
15,000 5.200%, 6/15/30 - AMBAC Insured 12/11 at 101.00 AAA 15,102,000
5,000 5.125%, 6/15/33 - AMBAC Insured 12/11 at 101.00 AAA 5,013,950
2,035 Redding, California, Electric System Revenue Certificates of 6/15 at 100.00 Baa3 1,956,001
Participation, Series 2005, 5.000%, 6/01/30 - FGIC Insured
6,000 Redlands Unified School District, San Bernardino County, California, 7/13 at 100.00 AAA 6,150,540
General Obligation Bonds, Series 2003, 5.000%, 7/01/26 - FSA
Insured
2,970 Riverside Community College District, California, General 8/15 at 100.00 AAA 3,107,600
Obligation Bonds, Series 2005, 5.000%, 8/01/22 - FSA Insured
2,500 Sacramento County Sanitation District Financing Authority, 12/15 at 100.00 AA 2,590,100
California, Revenue Bonds, Series 2005B, 4.750%, 12/01/21 - FGIC
Insured
13,710 San Francisco Airports Commission, California, Revenue Refunding 5/11 at 100.00 AAA 13,732,622
Bonds, San Francisco International Airport, Second Series 2001,
Issue 27A, 5.250%, 5/01/26 - MBIA Insured (Alternative Minimum
Tax)
3,030 San Francisco Bay Area Rapid Transit District, California, Sales 7/11 at 100.00 AAA 3,069,087
Tax Revenue Bonds, Series 2001, 5.125%, 7/01/36 - AMBAC Insured
8,470 San Francisco Bay Area Rapid Transit District, California, Sales 7/11 at 100.00 AAA 9,109,654
Tax Revenue Bonds, Series 2001, 5.125%, 7/01/36 (Pre-refunded
7/01/11) - AMBAC Insured
San Francisco Bay Area Rapid Transit District, California, Sales
Tax Revenue Bonds, Series 2005A:
1,220 5.000%, 7/01/22 - MBIA Insured 7/15 at 100.00 AAA 1,275,974
1,280 5.000%, 7/01/23 - MBIA Insured 7/15 at 100.00 AAA 1,337,114
66,685 San Joaquin Hills Transportation Corridor Agency, Orange County, No Opt. Call AAA 37,899,081
California, Senior Lien Toll Road Revenue Bonds, Series 1993,
0.000%, 1/01/21 (ETM)
San Joaquin Hills Transportation Corridor Agency, Orange County,
California, Toll Road Revenue Refunding Bonds, Series 1997A:
31,615 5.250%, 1/15/30 - MBIA Insured 7/08 at 101.00 AAA 31,277,350
21,500 0.000%, 1/15/32 - MBIA Insured No Opt. Call AAA 5,196,980
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28
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Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
California (continued)
$ 12,525 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/10 at 101.00 AAA $ 13,362,046
Merged Area Redevelopment Project, Series 2002, 5.000%, 8/01/20
(Pre-refunded 8/01/10) - MBIA Insured
19,595 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/17 at 100.00 AAA 18,029,360
Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30 -
MBIA Insured (UB)
11,000 Santa Ana Financing Authority, California, Lease Revenue Bonds, No Opt. Call AAA 12,812,690
Police Administration and Housing Facility, Series 1994A, 6.250%,
7/01/24 - MBIA Insured
5,000 Walnut Energy Center Authority, California, Electric Revenue Bonds, 1/14 at 100.00 AAA 5,021,700
Turlock Irrigation District, Series 2004A, 5.000%, 1/01/34 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
428,220 Total California 388,244,999
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 6.8% (4.2% of Total Investments)
1,080 Arkansas River Power Authority, Colorado, Power Revenue Bonds, 10/16 at 100.00 A- 1,048,529
Series 2006, 5.250%, 10/01/40 - XLCA Insured
1,900 Aspen, Colorado, Sales Tax Revenue Bonds, Parks and Open Space, 11/15 at 100.00 AAA 2,002,258
Series 2005B, 5.250%, 11/01/24 - FSA Insured
1,000 Colorado Department of Transportation, Certificates of 6/14 at 100.00 AAA 1,031,320
Participation, Series 2004, 5.000%, 6/15/25 - MBIA Insured
4,950 Denver Convention Center Hotel Authority, Colorado, Senior Revenue 12/13 at 100.00 A3(4) 5,362,038
Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/33
(Pre-refunded 12/01/13) - XLCA Insured
1,740 Douglas County School District RE1, Douglas and Elbert Counties, 12/14 at 100.00 Aaa 1,785,257
Colorado, General Obligation Bonds, Series 2005B, 5.000%,
12/15/28 - FSA Insured
35,995 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AAA 15,499,807
Series 1997B, 0.000%, 9/01/23 - MBIA Insured
30,800 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 102.00 AAA 33,555,058
Series 2000A, 5.750%, 9/01/35 (Pre-refunded 9/01/10) - MBIA
Insured
11,800 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 74.80 AAA 8,291,860
Series 2000B, 0.000%, 9/01/15 (Pre-refunded 9/01/10) - MBIA
Insured
10,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call AAA 3,310,300
Series 2004A, 0.000%, 9/01/27 - MBIA Insured
4,520 Jefferson County School District R1, Colorado, General Obligation 12/14 at 100.00 AAA 4,674,177
Bonds, Series 2004, 5.000%, 12/15/24 - FSA Insured
2,500 Summit County School District RE-1, Summit, Colorado, General 12/14 at 100.00 Aa3 2,600,800
Obligation Bonds, Series 2004B, 5.000%, 12/01/24 - FGIC Insured
1,000 University of Colorado, Enterprise System Revenue Bonds, Series 6/15 at 100.00 AA- 1,002,910
2005, 5.000%, 6/01/30 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
107,285 Total Colorado 80,164,314
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District of Columbia - 1.1% (0.6% of Total Investments)
District of Columbia Water and Sewerage Authority, Subordinate
Lien Public Utility Revenue Bonds, Series 2003:
5,000 5.125%, 10/01/24 - FGIC Insured 10/13 at 100.00 AA- 5,141,350
5,000 5.125%, 10/01/25 - FGIC Insured 10/13 at 100.00 AA- 5,124,450
2,670 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 2,205,634
Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals
1606, 8.033%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
12,670 Total District of Columbia 12,471,434
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29
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NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Florida - 6.4% (3.9% of Total Investments)
$ 1,000 Hillsborough County School Board, Florida, Certificates of 7/15 at 100.00 AAA $ 1,016,800
Participation, Master Lease Program, Series 2005A, 5.000%,
7/01/26 - MBIA Insured
Indian Trace Development District, Florida, Water Management
Special Benefit Assessment Bonds, Series 2005:
645 5.000%, 5/01/25 - MBIA Insured 5/15 at 102.00 Aaa 670,594
1,830 5.000%, 5/01/27 - MBIA Insured 5/15 at 102.00 Aaa 1,886,181
4,425 Jacksonville Economic Development Commission, Florida, Healthcare 11/12 at 100.00 AAA 4,588,460
Facilities Revenue Bonds, Mayo Clinic, Series 2001C, 5.500%,
11/15/36 - MBIA Insured
1,505 Lee County, Florida, Transportation Facilities Revenue Bonds, 10/14 at 100.00 AAA 1,561,784
Series 2004B, 5.000%, 10/01/21 - AMBAC Insured
2,000 Marco Island, Florida, Water Utility System Revenue Bonds, Series 10/13 at 100.00 AAA 2,024,520
2003, 5.000%, 10/01/27 - MBIA Insured
2,150 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA 2,071,762
International Airport, Series 2002A, 5.125%, 10/01/35 - FSA
Insured (Alternative Minimum Tax)
35,920 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 A2 35,271,642
International Airport, Series 2002, 5.375%, 10/01/32 - FGIC
Insured (Alternative Minimum Tax)
12,930 Miami-Dade County, Florida, Public Facilities Revenue Bonds, 12/15 at 100.00 AAA 12,967,626
Jackson Health System, Series 2005A, 5.000%, 6/01/32 - MBIA
Insured
5,320 Miami-Dade County, Florida, Public Facilities Revenue Bonds, 6/15 at 100.00 AAA 5,379,850
Jackson Health System, Series 2005B, 5.000%, 6/01/25 - MBIA
Insured
Northern Palm Beach County Improvement District, Florida, Revenue
Bonds, Water Control and Improvement Development Unit 9B,
Series 2005:
1,290 5.000%, 8/01/23 - MBIA Insured 8/15 at 102.00 AAA 1,356,242
2,145 5.000%, 8/01/29 - MBIA Insured 8/15 at 102.00 AAA 2,197,531
2,320 Osceola County, Florida, Transportation Revenue Bonds, Osceola 4/14 at 100.00 Aaa 2,357,909
Parkway, Series 2004, 5.000%, 4/01/23 - MBIA Insured
2,225 Plantation, Florida, Non-Ad Valorem Revenue Refunding and 8/13 at 100.00 Aaa 2,347,954
Improvement Bonds, Series 2003, 5.000%, 8/15/18 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
75,705 Total Florida 75,698,855
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 1.0% (0.6% of Total Investments)
1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/14 at 100.00 AAA 1,039,340
2004, 5.000%, 11/01/22 - FSA Insured
1,520 College Park Business and Industrial Development Authority, 9/14 at 102.00 AAA 1,616,885
Georgia, Revenue Bonds, Public Safety Project, Series 2004,
5.250%, 9/01/23 - MBIA Insured
Fulton County Development Authority, Georgia, Revenue Bonds,
Georgia Tech Molecular Science Building, Series 2004:
1,695 5.250%, 5/01/19 - MBIA Insured 5/14 at 100.00 AAA 1,825,532
1,135 5.250%, 5/01/20 - MBIA Insured 5/14 at 100.00 AAA 1,215,176
4,500 5.000%, 5/01/36 - MBIA Insured 5/14 at 100.00 AAA 4,574,610
1,250 Glynn-Brunswick Memorial Hospital Authority, Georgia, Revenue 8/08 at 100.00 AAA 1,257,313
Bonds, Southeast Georgia Health Systems, Series 1996, 5.250%,
8/01/13 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
11,100 Total Georgia 11,528,856
------------------------------------------------------------------------------------------------------------------------------------
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30
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Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Idaho - 0.3% (0.2% of Total Investments)
$ 305 Idaho Housing Agency, Single Family Mortgage Senior Bonds, Series No Opt. Call Aa1 $ 316,255
1994B-1, 6.750%, 7/01/22
265 Idaho Housing Agency, Single Family Mortgage Senior Bonds, Series No Opt. Call Aa1 274,938
1994B-2, 6.900%, 7/01/26 (Alternative Minimum Tax)
340 Idaho Housing Agency, Single Family Mortgage Senior Bonds, Series 7/08 at 100.00 Aaa 350,815
1995B, 6.600%, 7/01/27 (Alternative Minimum Tax)
Idaho Housing and Finance Association, Grant and Revenue
Anticipation Bonds, Federal Highway Trust Funds, Series 2006:
1,000 5.000%, 7/15/23 - MBIA Insured 7/16 at 100.00 Aaa 1,045,100
1,065 5.000%, 7/15/24 - MBIA Insured 7/16 at 100.00 Aaa 1,107,813
------------------------------------------------------------------------------------------------------------------------------------
2,975 Total Idaho 3,094,921
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 6.2% (3.8% of Total Investments)
1,050 Bedford Park, Illinois, General Obligation Bonds, Series 2004A, 12/14 at 100.00 AAA 1,133,412
5.250%, 12/15/20 - FSA Insured
Chicago, Illinois, Second Lien Passenger Facility Charge Revenue
Refunding Bonds, O'Hare International Airport, Series 2001E:
4,615 5.500%, 1/01/17 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,697,332
4,870 5.500%, 1/01/18 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,937,303
7,200 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 7,386,768
O'Hare International Airport, Series 2005A, 5.250%, 1/01/24 -
MBIA Insured
10,000 Illinois Development Finance Authority, Revenue Bonds, Provena 5/08 at 101.00 AAA 10,113,600
Health, Series 1998A, 5.500%, 5/15/21 - MBIA Insured
2,095 Illinois Educational Facilities Authority, Revenue Bonds, Robert 6/08 at 100.00 Aaa 2,098,247
Morris College, Series 2000, 5.800%, 6/01/30 - MBIA Insured
4,500 Illinois Health Facilities Authority, Revenue Bonds, Alexian 1/09 at 101.00 AAA 4,630,410
Brothers Health System, Series 1999, 5.000%, 1/01/19
(Pre-refunded 1/01/09) - FSA Insured
7,000 Illinois Health Facilities Authority, Revenue Bonds, Hospital 6/08 at 101.00 Aaa 7,077,210
Sisters Services Inc. Obligated Group, Series 1998A, 5.000%,
6/01/18 - MBIA Insured
22,510 Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AA 22,997,116
Series 2002, 5.125%, 2/01/27 - FGIC Insured
Schaumburg, Illinois, General Obligation Bonds, Series 2004B:
4,260 5.000%, 12/01/22 - FGIC Insured 12/14 at 100.00 AA+ 4,424,351
2,365 5.000%, 12/01/23 - FGIC Insured 12/14 at 100.00 AA+ 2,446,640
4,000 Southwestern Illinois Development Authority, School Revenue No Opt. Call AAA 1,638,440
Bonds, Triad School District 2, Madison County, Illinois,
Series 2006, 0.000%, 10/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
74,465 Total Illinois 73,580,829
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 3.5% (2.2% of Total Investments)
2,030 Decatur Township-Marion County Multi-School Building Corporation, 7/13 at 100.00 AA(4) 2,218,587
Indiana, First Mortgage Bonds, Series 2003, 5.000%, 7/15/20
(Pre-refunded 7/15/13) - FGIC Insured
8,000 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 AAA 7,992,960
Series 2007A, 5.000%, 1/01/42 - MBIA Insured
20,000 Indianapolis Local Public Improvement Bond Bank, Indiana, Series No Opt. Call AAA 7,103,200
1999E, 0.000%, 2/01/28 - AMBAC Insured
3,250 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 3,544,450
Waterworks Project, Series 2002A, 5.250%, 7/01/33 (Pre-refunded
7/01/12) - MBIA Insured
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31
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NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Indiana (continued)
$ 1,340 Monroe-Gregg Grade School Building Corporation, Morgan County, 1/14 at 100.00 AAA $ 1,466,550
Indiana, First Mortgage Bonds, Series 2004, 5.000%, 1/15/25
(Pre-refunded 1/15/14) - FSA Insured
5,000 Noblesville Redevelopment Authority, Indiana, Economic 7/13 at 100.00 AAA 5,042,950
Development Lease Rental Bonds, Exit 10 Project, Series 2003,
5.000%, 1/15/28 - AMBAC Insured
10,000 Purdue University, Indiana, Student Fee Bonds, Series 2002O, 1/12 at 100.00 AAA 10,384,300
5.000%, 7/01/19 - MBIA Insured
3,705 Whitley County Middle School Building Corporation, Columbia City, 7/13 at 100.00 Aaa 4,049,195
Indiana, First Mortgage Bonds, Series 2003, 5.000%, 7/15/16
(Pre-refunded 7/15/13) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
53,325 Total Indiana 41,802,192
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 1.2% (0.8% of Total Investments)
2,055 Kansas Turnpike Authority, Revenue Bonds, Series 2004A-2, 5.000%, 9/14 at 101.00 AAA 2,160,134
9/01/23 - FSA Insured
Neosho County Unified School District 413, Kansas, General
Obligation Bonds, Series 2006:
2,145 5.000%, 9/01/27 - FSA Insured 9/14 at 100.00 Aaa 2,214,176
4,835 5.000%, 9/01/29 - FSA Insured 9/14 at 100.00 Aaa 4,972,072
5,000 University of Kansas Hospital Authority, Health Facilities 9/09 at 100.00 AAA 5,226,250
Revenue Bonds, KU Health System, Series 1999A, 5.650%, 9/01/29
(Pre-refunded 9/01/09) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
14,035 Total Kansas 14,572,632
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 2.1% (1.3% of Total Investments)
3,870 Kenton County School District Finance Corporation, Kentucky, 6/14 at 100.00 Aaa 4,062,610
School Building Revenue Bonds, Series 2004, 5.000%, 6/01/20 -
MBIA Insured
7,500 Kentucky Turnpike Authority, Economic Development Road Revenue 7/16 at 100.00 AAA 7,779,525
Bonds, Revitalization Project, Series 2006B, 5.000%, 7/01/25 -
AMBAC Insured
12,980 Louisville and Jefferson County Metropolitan Sewer District, 11/11 at 101.00 AAA 13,487,778
Kentucky, Sewer and Drainage System Revenue Bonds, Series
2001A, 5.500%, 5/15/34 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
24,350 Total Kentucky 25,329,913
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 5.8% (3.6% of Total Investments)
5,000 DeSoto Parish, Louisiana, Pollution Control Revenue Refunding 9/09 at 102.00 AAA 5,216,000
Bonds, Cleco Utility Group Inc. Project, Series 1999, 5.875%,
9/01/29 - AMBAC Insured
3,025 Lafayette City and Parish, Louisiana, Utilities Revenue Bonds, 11/14 at 100.00 AAA 3,190,740
Series 2004, 5.250%, 11/01/22 - MBIA Insured
5,140 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge 7/14 at 100.00 AAA 5,289,523
General Hospital, Series 2004, 5.250%, 7/01/24 - MBIA Insured
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2005A:
2,400 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AA- 2,445,408
4,415 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AA- 4,493,234
5,000 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AA- 5,079,700
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006:
3,300 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 3,263,073
8,135 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA- 7,707,180
27,590 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA- 26,139,042
38 Louisiana State, Gasoline Tax Revenue Bonds, Residuals 660-1, 5/16 at 100.00 AA- 32,285
5.082%, 5/01/41 - FGIC Insured (IF)
5,485 Orleans Levee District, Louisiana, Levee District General 6/08 at 102.00 AAA 5,556,744
Obligation Bonds, Series 1986, 5.950%, 11/01/15 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
69,528 Total Louisiana 68,412,929
------------------------------------------------------------------------------------------------------------------------------------
-----
32
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Maine - 0.3% (0.2% of Total Investments)
$ 3,000 Maine Health and Higher Educational Facilities Authority, Revenue 7/13 at 100.00 AAA $ 3,066,930
Bonds, Series 2003B, 5.000%, 7/01/28 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
Maryland - 0.4% (0.3% of Total Investments)
5,345 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 A- 5,075,665
Bonds, Series 2006A, 5.250%, 9/01/28 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 4.8% (2.9% of Total Investments)
22,500 Massachusetts Development Finance Authority, Revenue Bonds, WGBH 1/12 at 101.00 AAA 24,614,325
Educational Foundation, Series 2002A, 5.375%, 1/01/42
(Pre-refunded 1/01/12) - AMBAC Insured
11,000 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 11,469,920
Revenue Bonds, Series 2005A, 5.000%, 8/15/23 - FSA Insured (UB)
2,420 Massachusetts Water Resources Authority, General Revenue Bonds, 2/17 at 100.00 Aaa 1,906,621
Series 2007, Residual Trust 7039, 4.069%, 8/01/46 - FSA Insured
(IF)
15,000 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, 1/14 at 100.00 A(4) 16,366,800
Series 2004, 5.250%, 1/01/23 (Pre-refunded 1/01/14) - FGIC
Insured
1,500 University of Massachusetts Building Authority, Senior Lien 11/14 at 100.00 AAA 1,686,240
Project Revenue Bonds, Series 2004-1, 5.375%, 11/01/20
(Pre-refunded 11/01/14) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
52,420 Total Massachusetts 56,043,906
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 6.5% (4.0% of Total Investments)
5,490 Detroit City School District, Wayne County, Michigan, Unlimited No Opt. Call AAA 6,406,226
Tax School Building and Site Improvement Bonds, Series 2001A,
6.000%, 5/01/29 - FSA Insured
6,000 Detroit, Michigan, General Obligation Bonds, Series 2001A-1, 10/11 at 100.00 AAA 6,241,140
5.375%, 4/01/18 - MBIA Insured
7,420 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, 7/08 at 100.00 AAA 7,423,933
Series 1997A, 5.000%, 7/01/27 - MBIA Insured
Detroit, Michigan, Sewerage Disposal System Revenue Bonds,
Series 1999A:
15,825 5.750%, 7/01/26 (Pre-refunded 1/01/10) - FGIC Insured 1/10 at 101.00 Aaa 16,851,093
20,000 5.875%, 7/01/27 (Pre-refunded 1/01/10) - FGIC Insured 1/10 at 101.00 Aaa 21,337,400
1,085 Grand Rapids Community College, Kent County, Michigan, General 5/13 at 100.00 AAA 1,150,740
Obligation Refunding Bonds, Series 2003, 5.250%, 5/01/20 -
AMBAC Insured
6,850 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 6,944,736
Metropolitan Wayne County Airport, Series 1998A, 5.375%,
12/01/15 - MBIA Insured (Alternative Minimum Tax)
10,000 Wayne County, Michigan, Limited Tax General Obligation Airport 12/11 at 101.00 AAA 10,373,500
Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport,
Series 2001A, 5.250%, 12/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
72,670 Total Michigan 76,728,768
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 1.3% (0.8% of Total Investments)
13,020 Saint Paul Housing and Redevelopment Authority, Minnesota, 12/11 at 102.00 Aaa 14,882,641
Multifamily Housing Revenue Bonds, Marian Center Project,
Series 2001A, 6.450%, 6/20/43 (Pre-refunded 12/20/11)
------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 1.3% (0.8% of Total Investments)
14,520 Lincoln Electric System, Nebraska, Electric System Revenue Bonds, 9/17 at 100.00 AA 13,111,270
Series 2007A, Residuals 07-1007-9, 3.454%, 9/01/37 - FGIC
Insured (IF)
Nebraska Public Power District, General Revenue Bonds, Series 2005A:
1,000 5.000%, 1/01/24 - FSA Insured 1/15 at 100.00 AAA 1,033,710
1,000 5.000%, 1/01/25 - FSA Insured 1/15 at 100.00 AAA 1,033,710
------------------------------------------------------------------------------------------------------------------------------------
16,520 Total Nebraska 15,178,690
------------------------------------------------------------------------------------------------------------------------------------
-----
33
-----
NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 8.2% (5.0% of Total Investments)
$ 8,475 Clark County, Nevada, General Obligation Bank Bonds, Southern 12/12 at 100.00 AAA $ 8,536,783
Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32 - MBIA
Insured
3,630 Clark County, Nevada, General Obligation Bank Bonds, Southern 12/12 at 100.00 Aaa 3,951,001
Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32
(Pre-refunded 12/01/12) - MBIA Insured
7,370 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/14 at 100.00 Aa3 7,429,550
Series 2004A-2, 5.125%, 7/01/25 - FGIC Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000:
15,000 5.625%, 1/01/34 - AMBAC Insured 1/10 at 102.00 AAA 12,736,350
13,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 10,387,000
14,985 Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 6/12 at 100.00 Baa1 15,278,256
5.375%, 6/01/32 - FGIC Insured
25,300 Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 6/12 at 100.00 Baa1(4) 27,621,275
5.375%, 6/01/32 (Pre-refunded 6/01/12) - FGIC Insured
10,000 Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, Reno 6/12 at 100.00 AAA 10,834,000
Transportation Rail Access Corridor Project, Series 2002,
5.125%, 6/01/27 (Pre-refunded 6/01/12) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
97,760 Total Nevada 96,774,215
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 2.2% (1.4% of Total Investments)
Essex County Improvement Authority, New Jersey, Guaranteed Revenue
Bonds, Project Consolidation, Series 2004:
2,000 5.125%, 10/01/21 - MBIA Insured 10/14 at 100.00 Aaa 2,111,720
2,250 5.125%, 10/01/22 - MBIA Insured 10/14 at 100.00 Aaa 2,355,525
New Jersey Economic Development Authority, Revenue Bonds, Motor
Vehicle Surcharge, Series 2004A:
3,850 5.000%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 4,000,805
3,850 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 3,988,138
New Jersey Turnpike Authority, Revenue Bonds, Series 2003A:
8,250 5.000%, 1/01/19 - FGIC Insured 7/13 at 100.00 A 8,493,458
2,000 5.000%, 1/01/23 - FSA Insured 7/13 at 100.00 AAA 2,087,420
3,320 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 3,480,788
5.000%, 1/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
25,520 Total New Jersey 26,517,854
------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.3% (0.2% of Total Investments)
3,660 San Juan County, New Mexico, Subordinate Gross Receipts Tax 6/15 at 100.00 AAA 3,734,518
Revenue Bonds, Series 2005, 5.000%, 6/15/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
New York - 7.6% (4.6% of Total Investments)
1,880 Dormitory Authority of the State of New York, FHA-Insured Mortgage 2/15 at 100.00 Baa3 1,911,095
Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/23 -
FGIC Insured
3,335 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 3,470,501
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 - AMBAC
Insured
3,820 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 3,563,716
2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
8,685 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 8,796,168
Revenue Bonds, Series 1998A, 5.300%, 12/01/19 (Pre-refunded
6/01/08) - FSA Insured
-----
34
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
New York (continued)
$ 6,900 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 AAA $ 6,379,395
Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA Insured (UB)
12,500 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 A- 12,715,625
Revenue Bonds, Series 2006A, 5.000%, 12/01/25 - FGIC Insured
Metropolitan Transportation Authority, New York, State Service
Contract Refunding Bonds, Series 2002A:
1,500 5.000%, 7/01/21 - FGIC Insured 7/12 at 100.00 AA- 1,539,885
5,000 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00 AA- 5,101,400
5,000 New York City, New York, General Obligation Bonds, Fiscal Series 9/15 at 100.00 AAA 5,262,900
2005F-1, 5.000%, 9/01/21 - AMBAC Insured
10,000 New York City, New York, General Obligation Bonds, Fiscal Series 4/15 at 100.00 AA 10,294,100
2005M, 5.000%, 4/01/26 - FGIC Insured
5,000 New York State Thruway Authority, General Revenue Bonds, Series 1/15 at 100.00 AAA 5,168,550
2005F, 5.000%, 1/01/26 - AMBAC Insured
3,650 New York State Urban Development Corporation, Service Contract 3/15 at 100.00 AAA 3,791,693
Revenue Bonds, Series 2005B, 5.000%, 3/15/25 - FSA Insured
New York State Urban Development Corporation, State Personal
Income Tax Revenue Bonds, Series 2004A-1:
1,000 5.000%, 3/15/23 - FGIC Insured 3/14 at 100.00 AAA 1,038,060
5,000 5.000%, 3/15/25 - FGIC Insured 3/14 at 100.00 AAA 5,158,800
15,000 Triborough Bridge and Tunnel Authority, New York, Subordinate Lien 11/12 at 100.00 AAA 15,145,200
General Purpose Revenue Refunding Bonds, Series 2002E, 5.000%,
11/15/32 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
88,270 Total New York 89,337,088
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 1.4% (0.9% of Total Investments)
Mooresville, North Carolina, Enterprise System Revenue Bonds,
Series 2004:
2,115 5.000%, 5/01/22 - FGIC Insured 5/14 at 100.00 A 2,175,679
2,575 5.000%, 5/01/26 - FGIC Insured 5/14 at 100.00 A 2,585,583
5,000 North Carolina Municipal Power Agency 1, Catawba Electric Revenue 1/13 at 100.00 AAA 5,391,550
Bonds, Series 2003A, 5.250%, 1/01/16 - FSA Insured
Raleigh Durham Airport Authority, North Carolina, Airport Revenue
Bonds, Series 2005A:
3,205 5.000%, 5/01/23 - AMBAC Insured 5/15 at 100.00 Aaa 3,263,716
3,295 5.000%, 5/01/24 - AMBAC Insured 5/15 at 100.00 Aaa 3,343,568
------------------------------------------------------------------------------------------------------------------------------------
16,190 Total North Carolina 16,760,096
------------------------------------------------------------------------------------------------------------------------------------
North Dakota - 0.6% (0.4% of Total Investments)
Grand Forks, North Dakota, Sales Tax Revenue Bonds, Alerus
Project, Series 2005A:
2,195 5.000%, 12/15/22 - MBIA Insured 12/15 at 100.00 Aaa 2,292,436
1,355 5.000%, 12/15/23 - MBIA Insured 12/15 at 100.00 Aaa 1,412,466
3,000 5.000%, 12/15/24 - MBIA Insured 12/15 at 100.00 Aaa 3,113,400
------------------------------------------------------------------------------------------------------------------------------------
6,550 Total North Dakota 6,818,302
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 4.3% (2.6% of Total Investments)
2,650 Cleveland State University, Ohio, General Receipts Bonds, Series 6/14 at 100.00 A 2,743,280
2004, 5.250%, 6/01/24 - FGIC Insured
2,000 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 2,234,880
Obligation Bonds, Series 2004, 5.250%, 12/01/25 (Pre-refunded
12/01/14) - FSA Insured
-----
35
-----
NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Ohio (continued)
$ 2,385 Columbus, Ohio, Tax Increment Financing Bonds, Easton Project, 6/14 at 100.00 AAA $ 2,428,717
Series 2004A, 5.000%, 12/01/22 - AMBAC Insured
2,205 Hamilton City School District, Ohio, General Obligation Bonds, 6/15 at 100.00 Aaa 2,260,412
Series 2005, 5.000%, 12/01/24 - MBIA Insured
19,600 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series 2006, 12/16 at 100.00 Aaa 17,707,228
4.250%, 12/01/32 - AMBAC Insured (UB)
20,100 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica Healthcare 11/09 at 101.00 AAA 20,111,055
Obligated Group, Series 1999, 5.375%, 11/15/39 - AMBAC Insured
3,000 Ross Local School District, Butler County, Ohio, General 12/13 at 100.00 Aaa 3,296,190
Obligation Bonds, Series 2003, 5.000%, 12/01/28 (Pre-refunded
12/01/13) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
51,940 Total Ohio 50,781,762
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 3.1% (1.9% of Total Investments)
3,500 Oklahoma Capitol Improvement Authority, State Facilities Revenue 7/15 at 100.00 AAA 3,595,200
Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured
3,545 Oklahoma Housing Finance Agency, GNMA Collateralized Single Family No Opt. Call AAA 3,817,433
Mortgage Revenue Bonds, Series 1987A, 7.997%, 8/01/18
(Alternative Minimum Tax)
21,000 Oklahoma Municipal Power Authority, Power Supply System Revenue 1/17 at 100.00 A 18,636,240
Bonds, Series 2007, 4.500%, 1/01/47 - FGIC Insured
5,245 Oklahoma State Industries Authority, Revenue Bonds, Oklahoma 2/11 at 100.00 Aaa 5,327,347
Medical Research Foundation, Series 2001, 5.250%, 2/01/21 -
AMBAC Insured
4,880 University of Oklahoma, Student Housing Revenue Bonds, Series 7/14 at 100.00 Aaa 5,033,769
2004, 5.000%, 7/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
38,170 Total Oklahoma 36,409,989
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 0.6% (0.4% of Total Investments)
2,535 Oregon Department of Administrative Services, Certificates of 5/15 at 100.00 AAA 2,627,350
Participation, Series 2005A, 5.000%, 5/01/25 - FSA Insured
3,470 Oregon Department of Administrative Services, Certificates of 11/15 at 100.00 AA- 3,630,696
Participation, Series 2005B, 5.000%, 11/01/18 - FGIC Insured
1,080 Oregon Housing and Community Services Department, Single Family 7/08 at 100.00 Aa2 1,080,875
Mortgage Revenue Bonds, Series 1995A, 6.450%, 7/01/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,085 Total Oregon 7,338,921
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 3.2% (2.0% of Total Investments)
7,925 Commonwealth Financing Authority, Pennsylvania, State 6/16 at 100.00 AAA 8,228,924
Appropriation Lease Bonds, Series 2006A, 5.000%, 6/01/26 - FSA
Insured
1,800 Pennsylvania Higher Educational Facilities Authority, Revenue 5/15 at 100.00 AAA 1,825,469
Bonds, Drexel University, Series 2005A, 5.000%, 5/01/28 - MBIA
Insured
11,740 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 11,436,404
Bonds, School District of Philadelphia, Series 2006B, 4.500%,
6/01/32 - FSA Insured (UB)
2,625 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 6/16 at 100.00 AAA 2,723,858
2006A, 5.000%, 12/01/26 - AMBAC Insured
6,335 Radnor Township School District, Delaware County, Pennsylvania, 8/15 at 100.00 Aaa 6,517,701
General Obligation Bonds, Series 2005B, 5.000%, 2/15/30 - FSA
Insured
Reading School District, Berks County, Pennsylvania, General
Obligation Bonds, Series 2005:
3,285 5.000%, 1/15/22 - FSA Insured 1/16 at 100.00 AAA 3,445,308
3,450 5.000%, 1/15/23 - FSA Insured 1/16 at 100.00 AAA 3,602,214
------------------------------------------------------------------------------------------------------------------------------------
37,160 Total Pennsylvania 37,779,878
------------------------------------------------------------------------------------------------------------------------------------
-----
36
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 0.9% (0.6% of Total Investments)
$ 2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/15 at 100.00 AAA $ 2,765,050
2005RR, 5.000%, 7/01/30 (Pre-refunded 7/01/15) - XLCA Insured
2,000 Puerto Rico Highway and Transportation Authority, Highway Revenue 7/13 at 100.00 BBB+ 2,013,340
Bonds, Series 2003G, 5.250%, 7/01/19 - FGIC Insured
1,550 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, No Opt. Call A+ 1,551,039
8/01/21 - CIFG Insured
36,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call A+ 4,839,840
Bonds, Series 2007A, 0.000%, 8/01/42 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
42,050 Total Puerto Rico 11,169,269
------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 2.2% (1.3% of Total Investments)
2,195 Providence Housing Development Corporation, Rhode Island, 7/08 at 100.00 AAA 2,290,175
FHA-Insured Section 8 Assisted Mortgage Revenue Refunding Bonds,
Barbara Jordan Apartments, Series 1994A, 6.750%, 7/01/25 - MBIA
Insured
20,475 Rhode Island Depositors Economic Protection Corporation, Special 2/11 at 100.00 AAA 21,888,594
Obligation Refunding Bonds, Series 1993B, 5.250%, 8/01/21
(Pre-refunded 2/01/11) - MBIA Insured
1,405 Rhode Island Health & Educational Building Corporation, Higher 9/14 at 100.00 Aaa 1,488,429
Education Auxiliary Enterprise Revenue Bonds, Series 2004A,
5.500%, 9/15/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
24,075 Total Rhode Island 25,667,198
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 5.3% (3.2% of Total Investments)
10,000 Beaufort County, South Carolina, Tax Increment Bonds, New River 12/12 at 100.00 AAA 10,101,500
Redevelopment Project, Series 2002, 5.000%, 6/01/27 - MBIA
Insured
Medical University Hospital Authority, South Carolina, FHA-Insured
Mortgage Revenue Bonds, Series 2004A:
2,000 5.250%, 8/15/22 - MBIA Insured 8/14 at 100.00 AAA 2,083,480
2,105 5.250%, 8/15/23 - MBIA Insured 8/14 at 100.00 AAA 2,183,517
4,855 Piedmont Municipal Power Agency, South Carolina, Electric Revenue No Opt. Call AAA 3,935,609
Bonds, Series 1988A, 0.000%, 1/01/13 - AMBAC Insured (ETM)
4,795 Piedmont Municipal Power Agency, South Carolina, Electric Revenue 7/09 at 76.63 AAA 3,458,442
Bonds, Series 1988A, 0.000%, 1/01/13 (Pre-refunded 7/01/09) -
AMBAC Insured
7,955 Piedmont Municipal Power Agency, South Carolina, Electric Revenue No Opt. Call AAA 6,300,599
Bonds, Series 1988A, 0.000%, 1/01/13 - AMBAC Insured
8,000 South Carolina JOBS Economic Development Authority, Industrial 11/12 at 100.00 AAA 8,163,840
Revenue Bonds, South Carolina Electric and Gas Company, Series
2002A, 5.200%, 11/01/27 - AMBAC Insured
10,000 South Carolina JOBS Economic Development Authority, Industrial 11/12 at 100.00 AAA 10,000,000
Revenue Bonds, South Carolina Electric and Gas Company, Series
2002B, 5.450%, 11/01/32 - AMBAC Insured (Alternative Minimum Tax)
17,500 South Carolina Transportation Infrastructure Bank, Revenue Bonds, 10/16 at 100.00 A1 16,248,225
Series 2007A, 4.500%, 10/01/34 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
67,210 Total South Carolina 62,475,212
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.6% (0.3% of Total Investments)
6,455 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/11 at 100.00 AAA 6,675,051
Revenue Bonds, Series 2001A, 5.500%, 3/01/18 - FSA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
-----
37
-----
NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Texas - 16.1% (9.9% of Total Investments)
$ 22,650 Brazos River Authority, Texas, Revenue Refunding Bonds, Houston 5/08 at 102.00 AAA $ 22,950,339
Industries Inc., Series 1998C, 5.125%, 5/01/19 - AMBAC Insured
521 Capital Area Housing Finance Corporation, Texas, FNMA Backed Single 4/12 at 106.00 AAA 537,382
Family Mortgage Revenue Refunding Bonds, Series 2002A-2, 6.300%,
4/01/35 - AMBAC Insured (Alternative Minimum Tax)
12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue Bonds, 11/09 at 100.00 A+ 12,596,750
Series 2000A, 6.125%, 11/01/35 - FGIC Insured (Alternative Minimum
Tax)
Harris County, Texas, Toll Road Senior Lien Revenue Bonds, Series 1989:
9,000 0.000%, 8/15/18 (Pre-refunded 8/15/09) - AMBAC Insured 8/09 at 53.84 AAA 4,696,740
39,000 0.000%, 8/15/19 (Pre-refunded 8/15/09) - AMBAC Insured 8/09 at 50.26 AAA 18,998,850
7,280 0.000%, 8/15/20 (Pre-refunded 8/15/09) - AMBAC Insured 8/09 at 46.91 AAA 3,310,726
5,085 0.000%, 8/15/21 (Pre-refunded 8/15/09) - AMBAC Insured 8/09 at 43.80 AAA 2,158,684
25,000 Harris County-Houston Sports Authority, Texas, Junior Lien Revenue 11/11 at 100.00 AAA 25,118,000
Refunding Bonds, Series 2001B, 5.250%, 11/15/40 - MBIA Insured
4,671 Houston Housing Finance Corporation, Texas, GNMA Collateralized 9/11 at 105.00 Aaa 4,761,758
Mortgage Multifamily Housing Revenue Bonds, RRG Apartments
Project, Series 2001, 6.350%, 3/20/42
Houston, Texas, First Lien Combined Utility System Revenue Bonds,
Series 2004A:
4,000 5.250%, 5/15/24 - FGIC Insured 5/14 at 100.00 AA 4,082,840
5,000 5.250%, 5/15/25 - MBIA Insured 5/14 at 100.00 AAA 5,193,650
6,570 Houston, Texas, General Obligation Public Improvement Bonds, Series 3/11 at 100.00 AAA 7,056,180
2001A, 5.375%, 3/01/19 (Pre-refunded 3/01/11) - FSA Insured
17,500 Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, 9/11 at 100.00 AAA 17,712,100
Convention and Entertainment Project, Series 2001B, 5.250%,
9/01/33 - AMBAC Insured
4,170 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/10 at 100.00 AAA 4,441,092
Series 2000B, 5.500%, 7/01/30 (Pre-refunded 7/01/10) - FSA Insured
23,865 Jefferson County Health Facilities Development Corporation, Texas, 8/11 at 100.00 AAA 24,393,132
FHA-Insured Mortgage Revenue Bonds, Baptist Hospital of Southeast
Texas, Series 2001, 5.500%, 8/15/41 - AMBAC Insured
140 Lower Colorado River Authority, Texas, Revenue Refunding and 5/11 at 100.00 AAA 149,446
Improvement Bonds, Series 2001A, 5.000%, 5/15/21 (Pre-refunded
5/15/11) - MBIA Insured
8,065 Lower Colorado River Authority, Texas, Revenue Refunding and 5/11 at 100.00 AAA 8,202,347
Improvement Bonds, Series 2001A, 5.000%, 5/15/21 - MBIA Insured
Port of Houston Authority, Harris County, Texas, General Obligation
Port Improvement Bonds, Series 2001B:
3,205 5.500%, 10/01/18 - FGIC Insured (Alternative Minimum Tax) 10/11 at 100.00 AA+ 3,235,608
3,375 5.500%, 10/01/19 - FGIC Insured (Alternative Minimum Tax) 10/11 at 100.00 AA+ 3,402,101
7,205 San Antonio, Texas, Airport System Improvement Revenue Bonds, Series 7/11 at 101.00 A+ 7,362,069
2001, 5.375%, 7/01/15 - FGIC Insured (Alternative Minimum Tax)
7,550 Waco Health Facilities Development Corporation, Texas, Hillcrest 8/16 at 100.00 AAA 7,579,823
Health System Project, FHA Insured Mortgage Revenue Bonds, Series
2006A, 5.000%, 8/01/31 - MBIA Insured
1,840 Ysleta Independent School District Public Facility Corporation, 11/09 at 100.00 AAA 1,879,910
Texas, Lease Revenue Refunding Bonds, Series 2001, 5.375%,
11/15/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
218,192 Total Texas 189,819,527
------------------------------------------------------------------------------------------------------------------------------------
-----
38
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Utah - 0.2% (0.1% of Total Investments)
$ 2,000 Clearfield City, Utah, Sales Tax Revenue Bonds, Series 2003, 5.000%, 7/13 at 100.00 AA-(4) $ 2,184,640
7/01/28 (Pre-refunded 7/01/13) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
Virginia - 1.4% (0.8% of Total Investments)
1,035 Loudoun County Industrial Development Authority, Virginia, Lease 6/14 at 100.00 AAA 1,118,100
Revenue Bonds, Public Safety Facilities, Series 2003A, 5.250%,
12/15/20 - FSA Insured
4,840 Metropolitan Washington D.C. Airports Authority, Airport System 10/11 at 101.00 AAA 4,957,999
Revenue Bonds, Series 2001A, 5.500%, 10/01/19 - MBIA Insured
(Alternative Minimum Tax)
10,000 Virginia Housing Development Authority, Commonwealth Mortgage Bonds, 7/11 at 100.00 AAA 10,042,500
Series 2001H-1, 5.375%,7/01/36 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
15,875 Total Virginia 16,118,599
------------------------------------------------------------------------------------------------------------------------------------
Washington - 2.3% (1.4% of Total Investments)
2,500 Grant County Public Utility District 2, Washington, Revenue Bonds, 1/15 at 100.00 Aa2 2,508,275
Wanapum Hydroelectric Development, Series 2005A, 5.000%, 1/01/29 -
FGIC Insured
3,500 King County School District 401, Highline, Washington, General 12/14 at 100.00 AA+ 3,600,660
Obligation Bonds, Series 2004, 5.000%, 10/01/24 - FGIC Insured
3,195 Kitsap County, Washington, Limited Tax General Obligation Bonds, 7/10 at 100.00 AAA 3,402,707
Series 2000, 5.500%, 7/01/25 (Pre-refunded 7/01/10) -
AMBAC Insured
4,250 Snohomish County Public Utility District 1, Washington, Generation No Opt. Call Aaa 5,144,370
System Revenue Bonds, Series 1989, 6.650%, 1/01/16 - FGIC Insured
(ETM)
Tacoma, Washington, Solid Waste Utility Revenue Refunding Bonds,
Series 2006:
3,890 5.000%, 12/01/24 - XLCA Insured 12/16 at 100.00 AA- 3,922,248
4,085 5.000%, 12/01/25 - XLCA Insured 12/16 at 100.00 AA- 4,104,649
4,290 5.000%, 12/01/26 - XLCA Insured 12/16 at 100.00 AA- 4,292,789
------------------------------------------------------------------------------------------------------------------------------------
25,710 Total Washington 26,975,698
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 2.5% (1.5% of Total Investments)
15,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/08 at 101.00 AAA 15,053,700
Bonds, Marshfield Clinic, Series 1997, 5.750%, 2/15/27 - MBIA
Insured
290 Wisconsin, General Obligation Bonds, Series 2004-3, 5/14 at 100.00 Aa3 308,270
5.250%, 5/01/20 - FGIC Insured
2,600 Wisconsin, General Obligation Bonds, Series 2004-3, 5/14 at 100.00 Aaa 2,890,810
5.250%, 5/01/20 (Pre-refunded 5/01/14) - FGIC Insured
10,945 Wisconsin, General Obligation Bonds, Series 2004-4, 5/14 at 100.00 AAA 11,507,902
5.000%, 5/01/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
28,835 Total Wisconsin 29,760,682
------------------------------------------------------------------------------------------------------------------------------------
2,022,535 Total Long-Term Investments (cost $1,840,955,928) - 160.5% 1,892,451,313
------------------------------------------------------------------------------------------------------------------------------------
-----
39
-----
NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal
Amount (000) Description (1) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Short-Term Investments - 2.7% (1.6% of Total Investments)
$ 2,300 California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A, VMIG-1 $ 2,300,000
Trust M5J-REG D, Variable Rate Demand Obligations, 5.450%, 5/01/12 - MBIA
Insured (5)
17,630 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, ROCS 660, Variable Rate VMIG-1 17,630,000
Demand Obligations, 4.010%, 5/01/34 - FGIC Insured (5)
6,960 Massachusetts Turnpike Authority, Metropolitan Highway System Revenue Bonds, Senior A-1+ 6,960,000
Series 1997A, Trust 489, Variable Rate Demand Obligations, 6.000%, 1/01/37 - MBIA
Insured (5)
4,585 Mesa County Valley School District 51, Grand Junction, Colorado, General Obligation VMIG-1 4,585,000
Bonds, Trust 2696, Variable Rate Demand Obligations, 4.000%, 6/01/13 - MBIA
Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
$ 31,475 Total Short-Term Investments (cost $31,475,000) 31,475,000
============------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $1,872,430,928) - 163.2% 1,923,926,313
---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (8.6)% (101,853,333)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.1% 36,711,630
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (57.7)% (6) (680,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $1,178,784,610
=====================================================================================================================
As of April 30, 2008, all of the bonds in the Portfolio of Investments,
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.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please
see the Portfolio Manager's Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Preferred Shares, at Liquidation Value as a percentage of total
investments is (35.3)%.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
-----
40
-----
NIF | Nuveen Premier Insured Municipal Income Fund, Inc.
| Portfolio of INVESTMENTS
April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Alabama - 1.2% (0.8% of Total Investments)
$ 3,200 Auburn, Alabama, General Obligation Warrants, Series 2005, 5.000%, 8/15 at 100.00 AAA $ 3,273,984
8/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 3.0% (1.9% of Total Investments)
4,370 Phoenix Civic Improvement Corporation, Arizona, Junior Lien Water 7/15 at 100.00 AAA 4,454,822
System Revenue Bonds, Series 2005, 4.750%, 7/01/25 - MBIA Insured
5,000 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic Plaza, No Opt. Call AA 3,884,350
Series 2005B, 0.000%, 7/01/40 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,370 Total Arizona 8,339,172
------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 1.5% (0.9% of Total Investments)
4,020 Northwest Community College District, Arkansas, General Obligation 5/15 at 100.00 AAA 4,122,992
Bonds, Series 2005, 5.000%, 5/15/23 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
California - 35.1% (21.7% of Total Investments)
ABAG Finance Authority for Non-Profit Corporations, California,
Insured Certificates of Participation, Children's Hospital Medical
Center of Northern California, Series 1999:
6,750 5.875%, 12/01/19 (Pre-refunded 12/01/09) - AMBAC Insured 12/09 at 101.00 AAA 7,192,868
10,000 6.000%, 12/01/29 (Pre-refunded 12/01/09) - AMBAC Insured 12/09 at 101.00 AAA 10,675,400
1,000 California Department of Water Resources, Water System Revenue 12/14 at 100.00 AAA 1,029,910
Bonds, Central Valley Project, Series 2005AC, 5.000%, 12/01/26 -
MBIA Insured
1,250 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 AAA 1,298,050
Revenue Bonds, Pacific Gas and Electric Company, Series 1996A,
5.350%, 12/01/16 - MBIA Insured (Alternative Minimum Tax)
4,775 Clovis Unified School District, Fresno County, California, General No Opt. Call AA 1,952,880
Obligation Bonds, Series 2001A, 0.000%, 8/01/25 - FGIC Insured
1,005 Folsom Cordova Unified School District, Sacramento County, 10/14 at 100.00 AAA 1,034,406
California, General Obligation Bonds, School Facilities
Improvement District 2, Series 2004B, 5.000%, 10/01/26 - FSA
Insured
1,150 Kern Community College District, California, General Obligation No Opt. Call AAA 533,439
Bonds, Series 2006, 0.000%, 11/01/23 - FSA Insured
50 Kern County Housing Authority, California, GNMA Guaranteed No Opt. Call AAA 51,906
Tax-Exempt Mortgage Obligation Bonds, Series 1994A-I, 7.150%,
12/30/24 (Alternative Minimum Tax)
35 Kern County Housing Authority, California, GNMA Guaranteed No Opt. Call AAA 36,424
Tax-Exempt Mortgage Obligation Bonds, Series 1994A-III, 7.450%,
6/30/25 (Alternative Minimum Tax)
4,365 La Verne-Grand Terrace Housing Finance Agency, California, Single No Opt. Call AAA 5,688,075
Family Residential Mortgage Revenue Bonds, Series 1984A, 10.250%,
7/01/17 (ETM)
5,000 Ontario Redevelopment Financing Authority, San Bernardino County, No Opt. Call AAA 6,371,000
California, Revenue Refunding Bonds, Redevelopment Project 1,
Series 1995, 7.400%, 8/01/25 - MBIA Insured
8,880 Pomona, California, GNMA/FHLMC Collateralized Single Family No Opt. Call AAA 11,349,084
Mortgage Revenue Refunding Bonds, Series 1990B, 7.500%, 8/01/23
(ETM)
10,840 San Bernardino County, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 12,616,568
Program Single Family Home Mortgage Revenue Bonds, Series 1988A,
8.300%, 9/01/14 (Alternative Minimum Tax) (ETM)
9,515 San Bernardino, California, GNMA Mortgage-Backed Securities Program No Opt. Call AAA 11,935,235
Single Family Mortgage Revenue Refunding Bonds, Series 1990A,
7.500%, 5/01/23 (ETM)
-----
41
-----
NIF | Nuveen Premier Insured Municipal Income Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
California (continued)
$ 4,300 San Francisco Airports Commission, California, Revenue Refunding 5/11 at 100.00 AAA $ 4,319,694
Bonds, San Francisco International Airport, Second Series 2001,
Issue 27A, 5.125%, 5/01/19 - MBIA Insured (Alternative Minimum
Tax)
29,000 San Joaquin Hills Transportation Corridor Agency, Orange County, No Opt. Call AAA 7,475,330
California, Toll Road Revenue Refunding Bonds, Series 1997A,
0.000%, 1/15/31 - MBIA Insured
2,000 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/14 at 100.00 AAA 2,115,540
Merged Area Redevelopment Project, Series 2004A, 5.250%, 8/01/19 -
MBIA Insured
4,475 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/17 at 100.00 AAA 4,117,448
Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30 -
MBIA Insured (UB)
4,455 San Mateo County Community College District, California, General No Opt. Call AAA 2,348,186
Obligation Bonds, Series 2006B, 0.000%, 9/01/21 - MBIA Insured
1,815 University of California, General Revenue Bonds, Series 2005G, 5/13 at 101.00 AAA 1,815,908
4.750%, 5/15/31 - MBIA Insured
3,600 Ventura County Community College District, California, General 8/15 at 100.00 AAA 3,703,356
Obligation Bonds, Series 2005B, 5.000%, 8/01/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
114,260 Total California 97,660,707
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 10.3% (6.4% of Total Investments)
1,500 Adams and Arapahoe Counties Joint School District 28J, Aurora, 12/13 at 100.00 AAA 1,583,835
Colorado, General Obligation Bonds, Series 2003A, 5.125%,
12/01/21 - FSA Insured
2,500 Colorado Health Facilities Authority, Colorado, Revenue Bonds, 4/18 at 100.00 AAA 2,501,000
Catholic Health Initiatives, Series 2006C-1, Trust 1090,
11.524%, 10/01/41 - FSA Insured (IF)
2,500 Denver City and County, Colorado, Airport System Revenue Refunding 11/12 at 100.00 A+ 2,530,425
Bonds, Series 2002E, 5.500%, 11/15/18 - FGIC Insured
(Alternative Minimum Tax)
6,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 102.00 AAA 6,536,700
Series 2000A, 5.750%, 9/01/29 (Pre-refunded 9/01/10) - MBIA
Insured
20,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AAA 5,386,800
Series 2000B, 0.000%, 9/01/30 - MBIA Insured
4,405 Garfield, Eagle and Pitkin Counties School District RE-1, Roaring 12/14 at 100.00 AAA 4,555,255
Fork, Colorado, General Obligation Bonds, Series 2005A, 5.000%,
12/15/24 - FSA Insured
2,065 Jefferson County School District R1, Colorado, General Obligation 12/14 at 100.00 AAA 2,135,437
Bonds, Series 2004, 5.000%, 12/15/24 - FSA Insured
1,390 Teller County School District RE-2, Woodland Park, Colorado, 12/14 at 100.00 AAA 1,449,297
General Obligation Bonds, Series 2004, 5.000%, 12/01/22 - MBIA
Insured
1,000 University of Colorado, Enterprise System Revenue Bonds, Series 6/12 at 100.00 AA-(4) 1,079,430
2002A, 5.000%, 6/01/19 (Pre-refunded 6/01/12) - FGIC Insured
1,000 University of Colorado, Enterprise System Revenue Bonds, Series 6/15 at 100.00 AA- 1,002,910
2005, 5.000%, 6/01/30 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
42,360 Total Colorado 28,761,089
------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 0.2% (0.1% of Total Investments)
665 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 549,343
Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals
1606, 8.033%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
Florida - 3.8% (2.3% of Total Investments)
2,285 Florida Municipal Loan Council, Revenue Bonds, Series 2005A, 2/15 at 100.00 AAA 2,348,066
5.000%, 2/01/23 - MBIA Insured
1,500 JEA, Florida, Water and Sewerage System Revenue Bonds, Series 10/13 at 100.00 AA- 1,568,295
2004A, 5.000%, 10/01/19 - FGIC Insured
-----
42
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Florida (continued)
$ 4,240 Reedy Creek Improvement District, Florida, Utility Revenue Bonds, 10/13 at 100.00 AAA $ 4,559,272
Series 2003-1, 5.250%, 10/01/17 - MBIA Insured
2,000 Tallahassee, Florida, Energy System Revenue Bonds, Series 2005, 10/15 at 100.00 AAA 2,048,460
5.000%, 10/01/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,025 Total Florida 10,524,093
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 3.5% (2.2% of Total Investments)
2,950 Atlanta, Georgia, Airport General Revenue Bonds, Series 2004G, 1/15 at 100.00 AAA 3,042,571
5.000%, 1/01/25 - FSA Insured
6,500 Medical Center Hospital Authority, Georgia, Revenue Anticipation 8/09 at 102.00 AAA 6,748,560
Certificates, Columbus Regional Healthcare System, Inc. Project,
Series 1999, 5.500%, 8/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
9,450 Total Georgia 9,791,131
------------------------------------------------------------------------------------------------------------------------------------
Hawaii - 3.8% (2.4% of Total Investments)
2,250 Hawaii Department of Budget and Finance, Special Purpose Revenue 1/09 at 101.00 AAA 2,286,878
Bonds, Hawaiian Electric Company Inc., Series 1999D, 6.150%,
1/01/20 - AMBAC Insured (Alternative Minimum Tax)
8,030 Hawaii Department of Transportation, Airport System Revenue 7/10 at 101.00 A2 8,377,298
Refunding Bonds, Series 2000B, 6.500%, 7/01/15 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,280 Total Hawaii 10,664,176
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 17.7% (10.9% of Total Investments)
4,000 Bridgeview, Illinois, General Obligation Bonds, Series 2002, 12/12 at 100.00 A- 4,120,320
5.000%, 12/01/22 - FGIC Insured
8,200 Chicago Board of Education, Illinois, General Obligation Lease No Opt. Call AAA 9,079,942
Certificates, Series 1992A, 6.250%, 1/01/15 - MBIA Insured
10,000 Chicago, Illinois, General Obligation Refunding Bonds, Series 1/10 at 101.00 AA- 10,287,900
2000D, 5.500%, 1/01/35 - FGIC Insured
1,450 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 1,487,613
O'Hare International Airport, Series 2005A, 5.250%, 1/01/24 -
MBIA Insured
23,110 Illinois Development Finance Authority, Local Government Program No Opt. Call Aaa 15,752,696
Revenue Bonds, Kane, Cook and DuPage Counties School District
U46 - Elgin, Series 2002, 0.000%, 1/01/17 - FSA Insured
2,500 Illinois Municipal Electric Agency, Power Supply System Revenue 2/17 at 100.00 A+ 2,442,125
Bonds, Series 2007A, 5.000%, 2/01/35 - FGIC Insured
5,010 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 2,593,978
Refunding Bonds, McCormick Place Expansion Project, Series
1996A, 0.000%, 12/15/21 - MBIA Insured
3,225 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 3,460,490
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1992A, 9.000%, 6/01/09 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
57,495 Total Illinois 49,225,064
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 3.8% (2.3% of Total Investments)
2,130 Indiana Municipal Power Agency, Power Supply Revenue Bonds, Series 1/17 at 100.00 AAA 2,128,126
2007A, 5.000%, 1/01/42 - MBIA Insured
Indiana University, Parking Facility Revenue Bonds, Series 2004:
1,015 5.250%, 11/15/19 - AMBAC Insured 11/14 at 100.00 AAA 1,098,057
1,060 5.250%, 11/15/20 - AMBAC Insured 11/14 at 100.00 AAA 1,139,564
1,100 5.250%, 11/15/21 - AMBAC Insured 11/14 at 100.00 AAA 1,174,525
9,255 Indianapolis Local Public Improvement Bond Bank, Indiana, Series No Opt. Call AAA 3,916,346
1999E, 0.000%, 2/01/25 - AMBAC Insured
1,000 Metropolitan School District Steuben County K-5 Building 7/14 at 102.00 AAA 1,072,200
Corporation, Indiana, First Mortgage Bonds, Series 2003, 5.250%,
1/15/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
15,560 Total Indiana 10,528,818
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 1.2% (0.8% of Total Investments)
3,345 Ames, Iowa, Hospital Revenue Refunding Bonds, Mary Greeley Medical 6/13 at 100.00 Aaa 3,479,135
Center, Series 2003, 5.000%, 6/15/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
-----
43
-----
NIF | Nuveen Premier Insured Municipal Income Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 1.0% (0.6% of Total Investments)
$ 2,760 Neosho County Unified School District 413, Kansas, General 9/14 at 100.00 Aaa $ 2,826,019
Obligation Bonds, Series 2006, 5.000%, 9/01/31 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 2.9% (1.8% of Total Investments)
1,000 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge 7/14 at 100.00 AAA 1,029,090
General Hospital, Series 2004, 5.250%, 7/01/24 - MBIA Insured
7,160 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 5/16 at 100.00 AAA 7,079,880
2006, 4.750%, 5/01/39 - FSA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
8,160 Total Louisiana 8,108,970
------------------------------------------------------------------------------------------------------------------------------------
Maryland - 2.2% (1.4% of Total Investments)
1,200 Maryland Economic Development Corporation, Student Housing Revenue 6/16 at 100.00 A+ 1,117,872
Refunding Bonds, University of Maryland College Park Projects,
Series 2006, 5.000%, 6/01/28 - CIFG Insured
5,000 Maryland Transportation Authority, Airport Parking Revenue Bonds, 3/12 at 101.00 AAA 5,002,150
Baltimore-Washington International Airport Passenger Facility,
Series 2002B, 5.125%, 3/01/21 - AMBAC Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,200 Total Maryland 6,120,022
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 1.8% (1.1% of Total Investments)
4,400 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 4,587,968
Revenue Bonds, Series 2005A, 5.000%, 8/15/23 - FSA Insured (UB)
575 Massachusetts Water Resources Authority, General Revenue Bonds, 2/17 at 100.00 Aaa 453,020
Series 2007, Residual Trust 7039, 4.069%, 8/01/46 - FSA Insured
(IF)
------------------------------------------------------------------------------------------------------------------------------------
4,975 Total Massachusetts 5,040,988
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 3.7% (2.3% of Total Investments)
6,500 Michigan Higher Education Student Loan Authority, Revenue Bonds, No Opt. Call AAA 6,691,555
Series 2000 XII-T, 5.300%, 9/01/10 - AMBAC Insured (Alternative
Minimum Tax)
3,810 Michigan Housing Development Authority, GNMA Collateralized 8/12 at 102.00 Aaa 3,774,643
Limited Obligation Multifamily Housing Revenue Bonds, Cranbrook
Apartments, Series 2001A, 5.500%, 2/20/43 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,310 Total Michigan 10,466,198
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 1.8% (1.1% of Total Investments)
4,860 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 1/11 at 100.00 AA- 4,976,494
Airport Revenue Bonds, Series 2001B, 5.750%, 1/01/15 - FGIC
Insured (Alternative Minimum Tax)
145 Minnesota Housing Finance Agency, Rental Housing Bonds, Series 8/08 at 100.00 AAA 145,394
1995D, 5.950%, 2/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,005 Total Minnesota 5,121,888
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 0.7% (0.5% of Total Investments)
2,000 Missouri Western State College, Auxiliary System Revenue Bonds, 10/13 at 100.00 AAA 2,057,720
Series 2003, 5.000%, 10/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 4.8% (3.0% of Total Investments)
2,100 Clark County, Nevada, General Obligation Bank Bonds, Southern 12/12 at 100.00 AAA 2,115,309
Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32 - MBIA
Insured
900 Clark County, Nevada, General Obligation Bank Bonds, Southern 12/12 at 100.00 Aaa 979,587
Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32
(Pre-refunded 12/01/12) - MBIA Insured
-----
44
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Nevada (continued)
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000:
$ 160 0.000%, 1/01/28 - AMBAC Insured No Opt. Call AAA $ 42,254
2,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 1,598,000
7,990 Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, Reno 6/12 at 100.00 AAA 8,694,558
Transportation Rail Access Corridor Project, Series 2002, 5.250%,
6/01/41 (Pre-refunded 6/01/12) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
13,150 Total Nevada 13,429,708
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 1.2% (0.7% of Total Investments)
New Jersey Economic Development Authority, Revenue Bonds, Motor
Vehicle Surcharge, Series 2004A:
1,200 5.000%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 1,247,004
1,200 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 1,243,056
800 Rutgers State University, New Jersey, Certificates of Participation, 1/14 at 100.00 AAA 822,592
Lower Georges Street University Redevelopment Associates LLC,
Series 2004, 5.000%, 1/01/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
3,200 Total New Jersey 3,312,652
------------------------------------------------------------------------------------------------------------------------------------
New York - 6.8% (4.2% of Total Investments)
1,000 Dormitory Authority of the State of New York, FHA-Insured Mortgage 2/15 at 100.00 Baa3 1,016,540
Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/23 -
FGIC Insured
20 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 15,976
Driver Trust 1649, 2006, 6.799%, 2/15/47 - MBIA Insured (IF)
2,125 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 1,982,434
Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
5,000 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 A- 5,086,250
Revenue Bonds, Series 2006A, 5.000%, 12/01/25 - FGIC Insured
10,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 10,990,900
Revenue Refunding Bonds, Series 2002F, 5.250%, 11/15/27
(Pre-refunded 11/15/12) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
18,145 Total New York 19,092,100
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 2.3% (1.4% of Total Investments)
3,100 North Carolina Medical Care Commission, FHA-Insured Mortgage 10/13 at 100.00 AAA 3,156,327
Revenue Bonds, Betsy Johnson Regional Hospital Project, Series
2003, 5.125%, 10/01/32 - FSA Insured
3,050 Raleigh Durham Airport Authority, North Carolina, Airport Revenue 5/15 at 100.00 Aaa 3,120,486
Bonds, Series 2005A, 5.000%, 5/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,150 Total North Carolina 6,276,813
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 1.5% (0.9% of Total Investments)
4,600 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series 2006, 12/16 at 100.00 Aaa 4,155,778
4.250%, 12/01/32 - AMBAC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 1.6% (1.0% of Total Investments)
3,500 Oklahoma Capitol Improvement Authority, State Facilities Revenue 7/15 at 100.00 AAA 3,595,200
Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured
745 Oklahoma Housing Finance Agency, GNMA Collateralized Single Family No Opt. Call AAA 802,253
Mortgage Revenue Bonds, Series 1987A, 7.997%, 8/01/18
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,245 Total Oklahoma 4,397,453
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 4.3% (2.7% of Total Investments)
Oregon Health Sciences University, Revenue Bonds, Series 2002A:
5,000 5.000%, 7/01/26 - MBIA Insured 1/13 at 100.00 AAA 5,024,450
7,000 5.000%, 7/01/32 - MBIA Insured 1/13 at 100.00 AAA 7,013,930
------------------------------------------------------------------------------------------------------------------------------------
12,000 Total Oregon 12,038,380
------------------------------------------------------------------------------------------------------------------------------------
-----
45
-----
NIF | Nuveen Premier Insured Municipal Income Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 3.4% (2.1% of Total Investments)
$ 1,500 Allegheny County Sanitary Authority, Pennsylvania, Sewerage Revenue 12/15 at 100.00 AAA $ 1,540,905
Bonds, Series 2005A, 5.000%, 12/01/23 - MBIA Insured
4,000 Commonwealth Financing Authority, Pennsylvania, State Appropriation 6/16 at 100.00 AAA 4,153,400
Lease Bonds, Series 2006A, 5.000%, 6/01/26 - FSA Insured
2,680 Pennsylvania Public School Building Authority, Lease Revenue Bonds, 12/16 at 100.00 AAA 2,610,695
School District of Philadelphia, Series 2006B,
4.500%, 6/01/32 - FSA Insured (UB)
1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 6/16 at 100.00 AAA 1,089,543
2006A, 5.000%, 12/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,230 Total Pennsylvania 9,394,543
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 2.3% (1.4% of Total Investments)
2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/15 at 100.00 A3 2,482,275
2005RR, 5.000%, 7/01/22 - FGIC Insured
1,000 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, 8/01/21 - No Opt. Call A+ 1,000,670
CIFG Insured
5,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call A+ 672,200
Bonds, Series 2007A, 0.000%, 8/01/42 - FGIC Insured
2,000 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call AAA 2,177,000
Authority, Series 2003AA, 5.500%, 7/01/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,500 Total Puerto Rico 6,332,145
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 3.8% (2.3% of Total Investments)
3,000 Blount County Public Building Authority, Tennessee, Local 6/15 at 100.00 Aaa 3,044,550
Government Improvement Loans, Oak Ridge General Obligation,
2005 Series B9A, Variable Rate Demand Obligations,
5.000%, 6/01/24 - AMBAC Insured
2,055 Memphis, Tennessee, Sanitary Sewerage System Revenue Bonds, Series 10/14 at 100.00 AAA 2,140,735
2004, 5.000%, 10/01/22 - FSA Insured
5,000 Metropolitan Government of Nashville-Davidson County Health and 11/09 at 101.00 AAA 5,326,150
Educational Facilities Board, Tennessee, Revenue Bonds,
Ascension Health Credit Group, Series 1999A, 6.000%, 11/15/30
(Pre-refunded 11/15/09) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,055 Total Tennessee 10,511,435
------------------------------------------------------------------------------------------------------------------------------------
Texas - 10.6% (6.6% of Total Investments)
12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 A+ 12,239,750
Refunding and Improvement Bonds, Series 2001A,
5.500%, 11/01/35 - FGIC Insured (Alternative Minimum Tax)
North Harris County Regional Water Authority, Texas, Senior Water
Revenue Bonds, Series 2003:
4,565 5.250%, 12/15/20 - FGIC Insured 12/13 at 100.00 A3 4,667,667
4,800 5.250%, 12/15/21 - FGIC Insured 12/13 at 100.00 A3 4,886,400
7,600 San Antonio, Texas, Airport System Improvement Revenue Bonds, 7/11 at 101.00 A+ 7,725,476
Series 2001, 5.375%, 7/01/16 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
29,465 Total Texas 29,519,293
------------------------------------------------------------------------------------------------------------------------------------
Washington - 17.7% (10.9% of Total Investments)
5,000 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 5,019,850
Consolidated System Revenue Bonds, Series 2001B, 5.600%, 1/01/36 -
MBIA Insured (Alternative Minimum Tax)
King County School District 405, Bellevue, Washington, General
Obligation Bonds, Series 2002:
12,060 5.000%, 12/01/19 - FGIC Insured 12/12 at 100.00 AA+ 12,583,404
12,785 5.000%, 12/01/20 - FGIC Insured 12/12 at 100.00 AA+ 13,319,797
Pierce County School District 343, Dieringer, Washington, General
Obligation Refunding Bonds, Series 2003:
2,755 5.250%, 12/01/18 - FGIC Insured 6/13 at 100.00 Aa1 2,930,879
2,990 5.250%, 12/01/19 - FGIC Insured 6/13 at 100.00 Aa1 3,161,058
-----
46
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Washington (continued)
$ 4,715 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 5.625%, 10/11 at 100.00 Aa2 $ 4,797,465
4/01/17 - FGIC Insured (Alternative Minimum Tax)
895 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 908,398
Terminal 18, Series 1999C, 6.000%, 9/01/29 - MBIA Insured
(Alternative Minimum Tax)
1,265 Tacoma, Washington, General Obligation Bonds, Series 2002, 5.000%, 12/12 at 100.00 AA- 1,326,404
12/01/18 - FGIC Insured
5,000 Washington, General Obligation Bonds, Series 2001C, 5.250%, 1/01/26 - 1/11 at 100.00 AAA 5,165,450
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
47,465 Total Washington 49,212,705
------------------------------------------------------------------------------------------------------------------------------------
$ 487,645 Total Long-Term Investments (cost $433,446,220) - 159.5% 444,334,514
============------------------------------------------------------------------------------------------------------------------------
Short-Term Investments - 2.2% (1.3% of Total Investments)
2,050 Detroit, Michigan, Sewage Disposal System Revenue Bonds, Series VMIG-1 2,050,000
2001D-2, Trust M3J, Variable Rate Demand Obligations,
5.450%, 7/01/32 - MBIA Insured (5)
2,000 Golden State Tobacco Securitization Corporation, California, VMIG-1 2,000,000
Tobacco Settlement Enhanced Revenue Bonds, Trust 1220,
Variable Rate Demand Obligations, 6.000%, 6/01/35 -
FGIC Insured (5)
2,000 Municipal Electric Authority of Georgia, General Resolution A-1+ 2,000,000
Projects Subordinated Bonds, Series 2000B, Variable Rate
Demand Obligations, 2.560%, 1/01/20 - MBIA Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
$ 6,050 Total Short-Term Investments (cost $6,050,000) 6,050,000
============------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $439,496,220) - 161.7% 450,384,514
---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (6.2)% (17,315,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 6,418,707
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (57.8)% (6) (161,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 278,488,221
=====================================================================================================================
As of April 30, 2008, all of the bonds in the Portfolio of Investments,
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.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please
see the Portfolio Manager's Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the underlying insurers
both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Preferred Shares, at Liquidation Value as a percentage of total
investments is (35.7)%.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
-----
47
-----
NPX | Nuveen Insured Premium Income Municipal Fund 2
| Portfolio of INVESTMENTS
April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Alabama - 4.2% (2.5% of Total Investments)
$ 3,750 Huntsville Healthcare Authority, Alabama, Revenue Bonds, Series 6/15 at 100.00 AAA $ 3,805,688
2005A, 5.000%, 6/01/24 - MBIA Insured
Jefferson County, Alabama, General Obligation Warrants, Series 2004A:
1,395 5.000%, 4/01/22 - MBIA Insured 4/14 at 100.00 AAA 1,331,625
1,040 5.000%, 4/01/23 - MBIA Insured 4/14 at 100.00 AAA 980,418
11,135 Limestone County Water and Sewer Authority, Alabama, Water Revenue 3/17 at 100.00 A- 9,781,318
Bonds, Series 2007, 4.500%, 12/01/37 - XLCA Insured
Montgomery Water and Sewerage Board, Alabama, Water and Sewerage
Revenue Bonds, Series 2005:
2,220 5.000%, 3/01/24 - FSA Insured 3/15 at 100.00 AAA 2,297,767
2,590 5.000%, 3/01/25 - FSA Insured 3/15 at 100.00 AAA 2,680,728
------------------------------------------------------------------------------------------------------------------------------------
22,130 Total Alabama 20,877,544
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 2.5% (1.5% of Total Investments)
12,365 Phoenix Civic Improvement Corporation, Arizona, Junior Lien Water 7/15 at 100.00 AA 12,521,665
System Revenue Bonds, Series 2005, 4.750%, 7/01/27 - MBIA
Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 3.0% (1.8% of Total Investments)
7,745 Arkansas Development Finance Authority, State Facility Revenue 6/14 at 100.00 AAA 8,095,771
Bonds, Donaghey Plaza Project, Series 2004, 5.250%, 6/01/25 -
FSA Insured
University of Arkansas, Fayetteville, Revenue Bonds, Medical
Sciences Campus, Series 2004B:
2,000 5.000%, 11/01/27 - MBIA Insured 11/14 at 100.00 Aaa 2,056,980
2,000 5.000%, 11/01/28 - MBIA Insured 11/14 at 100.00 Aaa 2,050,160
2,480 University of Arkansas, Monticello Campus, Revenue Bonds, Series 12/13 at 100.00 Aaa 2,507,578
2005, 5.000%, 12/01/35 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
14,225 Total Arkansas 14,710,489
------------------------------------------------------------------------------------------------------------------------------------
California - 28.3% (17.0% of Total Investments)
22,880 Alameda Corridor Transportation Authority, California, Senior Lien No Opt. Call AAA 5,967,562
Revenue Bonds, Series 1999A, 0.000%, 10/01/32 - MBIA Insured (UB)
2,000 California Department of Water Resources, Water System Revenue 12/14 at 100.00 AAA 2,070,200
Bonds, Central Valley Project, Series 2005AC, 5.000%, 12/01/24 -
MBIA Insured
1,800 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aaa 1,839,078
Occidental College, Series 2005A, 5.000%, 10/01/33 - MBIA Insured
7,000 California Infrastructure Economic Development Bank, First Lien 1/28 at 100.00 AAA 7,476,980
Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A,
5.000%, 7/01/33 (Pre-refunded 1/01/28) - AMBAC Insured (UB)
31,200 Foothill/Eastern Transportation Corridor Agency, California, Toll 1/10 at 24.23 AAA 6,823,752
Road Revenue Refunding Bonds, Series 1999, 0.000%, 1/15/34 -
MBIA Insured
1,735 Fullerton Public Financing Authority, California, Tax Allocation 9/15 at 100.00 AAA 1,751,864
Revenue Bonds, Series 2005, 5.000%, 9/01/27 - AMBAC Insured
-----
48
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
California (continued)
$ 7,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A $ 6,738,480
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
5.000%, 6/01/35 - FGIC Insured (UB)
1,870 Kern Community College District, California, General Obligation No Opt. Call AAA 867,418
Bonds, Series 2006, 0.000%, 11/01/23 - FSA Insured
6,520 Los Angeles Unified School District, California, General 7/15 at 100.00 AAA 6,810,922
Obligation Bonds, Series 2005E, 5.000%, 7/01/22 - AMBAC Insured
4,000 Los Angeles Unified School District, California, General 7/16 at 100.00 AA- 4,176,920
Obligation Bonds, Series 2006F, 5.000%, 7/01/24 - FGIC Insured
15,000 Orange County Sanitation District, California, Certificates of 8/13 at 100.00 AA(4) 16,638,149
Participation, Series 2003, 5.250%, 2/01/30 (Pre-refunded
8/01/13) - FGIC Insured
1,750 Orange County Water District, California, Revenue Certificates of 8/13 at 100.00 AAA 1,814,190
Participation, Series 2003B, 5.000%, 8/15/34 - MBIA Insured (ETM)
8,250 Orange County Water District, California, Revenue Certificates of 8/13 at 100.00 AAA 8,351,475
Participation, Series 2003B, 5.000%, 8/15/34 - MBIA Insured
1,000 Orange County Water District, California, Revenue Certificates of 2/15 at 100.00 AAA 1,036,020
Participation, Series 2005B, 5.000%, 8/15/24 - MBIA Insured
1,435 Pasadena Area Community College District, Los Angeles County, 6/13 at 100.00 AA-(4) 1,570,823
California, General Obligation Bonds, Series 2003A, 5.000%,
6/01/22 (Pre-refunded 6/01/13) - FGIC Insured
12,265 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 AAA 13,178,374
Improvement Revenue Bonds, Solid Waste and Redevelopment
Projects, Series 1999, 5.800%, 12/01/19 (Pre-refunded 12/01/09) -
AMBAC Insured
735 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 AAA 776,807
Improvement Revenue Bonds, Solid Waste and Redevelopment
Projects, Series 1999, 5.800%, 12/01/19 - AMBAC Insured
San Diego County, California, Certificates of Participation,
Edgemoor Facility Project and Regional System, Series 2005:
1,675 5.000%, 2/01/24 - AMBAC Insured 2/15 at 100.00 AAA 1,735,032
720 5.000%, 2/01/25 - AMBAC Insured 2/15 at 100.00 AAA 743,681
14,170 San Diego Unified School District, San Diego County, California, 7/15 at 100.00 AAA 15,710,562
General Obligation Bonds, Series 2005G, 5.000%, 7/01/29
(Pre-refunded 7/01/15) - FSA Insured (UB)
San Joaquin Hills Transportation Corridor Agency, Orange County,
California, Toll Road Revenue Refunding Bonds, Series 1997A:
3,825 0.000%, 1/15/32 - MBIA Insured No Opt. Call AAA 924,579
26,900 0.000%, 1/15/34 - MBIA Insured No Opt. Call AAA 5,739,384
2,000 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/14 at 100.00 AAA 2,115,540
Merged Area Redevelopment Project, Series 2004A, 5.250%, 8/01/19 -
MBIA Insured
7,845 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/17 at 100.00 AAA 7,218,185
Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30 -
MBIA Insured (UB)
5,000 Torrance, California, Certificates of Participation, Series 2005B, No Opt. Call AAA 5,163,850
5.000%, 6/01/24 - AMBAC Insured
12,500 University of California, Revenue Bonds, Multi-Purpose Projects, 5/13 at 100.00 AAA 12,694,375
Series 2003A, 5.000%, 5/15/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
201,075 Total California 139,934,202
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 10.1% (6.0% of Total Investments)
1,940 Colorado Educational and Cultural Facilities Authority, Charter 6/13 at 100.00 A 1,982,408
School Revenue Bonds, Adams School District 12 - Pinnacle
School, Series 2003, 5.250%, 6/01/23 - XLCA Insured
3,405 Colorado Educational and Cultural Facilities Authority, Revenue 12/13 at 100.00 A 3,485,835
Bonds, Classical Academy Charter School, Series 2003, 5.250%,
12/01/23 - XLCA Insured
-----
49
-----
NPX | Nuveen Insured Premium Income Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Colorado (continued)
$ 3,500 Colorado Health Facilities Authority, Revenue Bonds, Poudre Valley 12/09 at 101.00 Aaa $ 3,720,570
Healthcare Inc., Series 1999A, 5.750%, 12/01/23 (Pre-refunded
12/01/09) - FSA Insured
17,145 Denver Convention Center Hotel Authority, Colorado, Senior Revenue 12/13 at 100.00 A3(4) 18,572,149
Bonds, Convention Center Hotel, Series 2003A, 5.000%, 12/01/33
(Pre-refunded 12/01/13) - XLCA Insured
6,100 Denver School District 1, Colorado, General Obligation Bonds, 12/13 at 100.00 AAA 6,454,105
Series 2004, 5.000%, 12/01/18 - FSA Insured
12,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AAA 3,232,080
Series 2000B, 0.000%, 9/01/30 - MBIA Insured
1,325 El Paso County, Colorado, Certificates of Participation, Detention 12/12 at 100.00 AAA 1,350,480
Facility Project, Series 2002B, 5.000%, 12/01/27 - AMBAC Insured
Jefferson County School District R1, Colorado, General Obligation
Bonds, Series 2004:
2,500 5.000%, 12/15/22 - FSA Insured 12/14 at 100.00 AAA 2,607,150
5,125 5.000%, 12/15/23 - FSA Insured 12/14 at 100.00 AAA 5,320,673
2,000 5.000%, 12/15/24 - FSA Insured 12/14 at 100.00 AAA 2,068,220
1,000 University of Colorado, Enterprise System Revenue Bonds, Series 6/15 at 100.00 AA- 1,002,910
2005, 5.000%, 6/01/30 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
56,040 Total Colorado 49,796,580
------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 0.2% (0.1% of Total Investments)
1,065 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 879,775
Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals
1606, 8.033%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
Florida - 0.8% (0.5% of Total Investments)
4,000 Florida State Board of Education, Full Faith and Credit Public 6/13 at 101.00 AAA 4,159,240
Education Capital Outlay Bonds, Series 2003J, 5.000%, 6/01/22 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 4.0% (2.4% of Total Investments)
4,000 Cobb County Development Authority, Georgia, Parking Revenue Bonds, 7/14 at 100.00 Aaa 4,128,880
Kennesaw State University, Series 2004, 5.000%, 7/15/24 - MBIA
Insured
2,925 Columbus, Georgia, Water and Sewerage Revenue Bonds, Series 2005, 5/14 at 100.00 AAA 2,999,646
5.000%, 5/01/23 - MBIA Insured
Municipal Electric Authority of Georgia, Combustion Turbine
Revenue Bonds, Series 2003A:
1,775 5.000%, 11/01/21 - MBIA Insured 11/13 at 100.00 AAA 1,840,586
2,580 5.000%, 11/01/22 - MBIA Insured 11/13 at 100.00 AAA 2,663,824
4,500 South Fulton Municipal Regional Water and Sewerage Authority, 1/13 at 100.00 Aaa 4,884,120
Georgia, Water and Sewerage Revenue Bonds, Series 2003, 5.000%,
1/01/33 (Pre-refunded 1/01/13) - MBIA Insured
3,000 Valdosta and Lowndes County Hospital Authority, Georgia, Revenue 10/12 at 101.00 AAA 3,081,030
Certificates, South Georgia Medical Center, Series 2002, 5.200%,
10/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
18,780 Total Georgia 19,598,086
------------------------------------------------------------------------------------------------------------------------------------
Hawaii - 7.9% (4.7% of Total Investments)
2,375 Hawaii County, Hawaii, General Obligation Bonds, Series 2003A, 7/13 at 100.00 AAA 2,500,923
5.000%, 7/15/19 - FSA Insured
20,000 Hawaii Department of Budget and Finance, Special Purpose Revenue 7/10 at 101.00 AAA 20,354,196
Refunding Bonds, Hawaiian Electric Company Inc., Series 2000,
5.700%, 7/01/20 - AMBAC Insured (Alternative Minimum Tax)
Hawaii Department of Transportation, Airport System Revenue
Refunding Bonds, Series 2000B:
6,105 6.100%, 7/01/16 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 A2 6,301,520
9,500 6.625%, 7/01/17 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 A2 9,879,240
------------------------------------------------------------------------------------------------------------------------------------
37,980 Total Hawaii 39,035,879
------------------------------------------------------------------------------------------------------------------------------------
-----
50
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Idaho - 0.1% (0.0% of Total Investments)
$ 320 Idaho Housing and Finance Association, Single Family Mortgage 7/08 at 101.50 AAA $ 326,106
Bonds, Series 1998E, 5.450%, 7/01/18 - AMBAC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 3.2% (1.9% of Total Investments)
1,015 Chicago Park District, Illinois, Limited Tax General Obligation 7/11 at 100.00 Aaa 1,063,070
Park Bonds, Series 2001C, 5.500%, 1/01/18 - FGIC Insured
Illinois Health Facilities Authority, Revenue Bonds, Lutheran
General Health System, Series 1993A:
2,365 6.125%, 4/01/12 - FSA Insured (ETM) No Opt. Call AAA 2,529,178
5,000 6.250%, 4/01/18 - FSA Insured (ETM) No Opt. Call AAA 5,808,950
1,950 Illinois Health Facilities Authority, Revenue Refunding Bonds, SSM No Opt. Call AAA 2,306,694
Healthcare System, Series 1992AA, 6.550%, 6/01/14 - MBIA Insured
(ETM)
4,000 Illinois Municipal Electric Agency, Power Supply System Revenue 2/17 at 100.00 A+ 3,907,400
Bonds, Series 2007A, 5.000%, 2/01/35 - FGIC Insured
185 Peoria, Moline and Freeport, Illinois, GNMA Collateralized Single 10/08 at 102.00 AAA 188,545
Family Mortgage Revenue Bonds, Series 1995A, 7.600%, 4/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
14,515 Total Illinois 15,803,837
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 1.7% (1.0% of Total Investments)
Hamilton County Public Building Corporation, Indiana, First
Mortgage Bonds, Series 2004:
2,105 5.000%, 8/01/23 - FSA Insured 8/14 at 100.00 AAA 2,177,896
2,215 5.000%, 8/01/24 - FSA Insured 8/14 at 100.00 AAA 2,283,156
3,730 Indiana Municipal Power Agency, Power Supply Revenue Bonds, Series 1/17 at 100.00 AAA 3,726,718
2007A, 5.000%, 1/01/42 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,050 Total Indiana 8,187,770
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.3% (0.2% of Total Investments)
1,500 Kansas Turnpike Authority, Revenue Bonds, Series 2004A-2, 5.000%, 9/14 at 101.00 AAA 1,559,745
9/01/27 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 1.1% (0.7% of Total Investments)
6,010 Kentucky Economic Development Finance Authority, Health System No Opt. Call AAA 1,926,506
Revenue Bonds, Norton Healthcare Inc., Series 2000B, 0.000%,
10/01/28 - MBIA Insured
3,575 Kentucky Turnpike Authority, Economic Development Road Revenue 7/15 at 100.00 AAA 3,694,334
Bonds, Revitalization Project, Series 2005B, 5.000%, 7/01/25 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,585 Total Kentucky 5,620,840
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 5.1% (3.1% of Total Investments)
4,455 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge 7/14 at 100.00 AAA 4,584,596
General Hospital, Series 2004, 5.250%, 7/01/24 - MBIA Insured
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2005A:
1,200 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AA- 1,222,704
2,210 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AA- 2,249,161
2,500 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AA- 2,539,850
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006:
1,320 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 1,305,229
10,890 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA- 10,317,295
3,375 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA- 3,197,509
------------------------------------------------------------------------------------------------------------------------------------
25,950 Total Louisiana 25,416,344
------------------------------------------------------------------------------------------------------------------------------------
-----
51
-----
NPX | Nuveen Insured Premium Income Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Maryland - 0.9% (0.5% of Total Investments)
$ 1,865 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 A- $ 1,788,572
Bonds, Series 2006A, 5.250%, 9/01/26 - XLCA Insured
2,580 Maryland Health and Higher Educational Facilities Authority, Revenue 7/16 at 100.00 AAA 2,536,579
Bonds, Western Maryland Health, Series 2006A, 4.750%, 7/01/36 -
MBIA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
4,445 Total Maryland 4,325,151
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 2.0% (1.2% of Total Investments)
3,000 Massachusetts Development Finance Authority, Revenue Bonds, WGBH No Opt. Call AAA 3,501,330
Educational Foundation, Series 2002A, 5.750%, 1/01/42 - AMBAC
Insured
290 Massachusetts Port Authority, Special Facilities Revenue Bonds, 1/11 at 101.00 AAA 250,934
Delta Air Lines Inc., Series 2001A, 5.000%, 1/01/27 - AMBAC
Insured (Alternative Minimum Tax)
Massachusetts, Special Obligation Dedicated Tax Revenue Bonds,
Series 2004:
3,650 5.250%, 1/01/22 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A(4) 3,982,588
2,000 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A(4) 2,182,240
------------------------------------------------------------------------------------------------------------------------------------
8,940 Total Massachusetts 9,917,092
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 0.6% (0.4% of Total Investments)
3,170 Michigan Housing Development Authority, Rental Housing Revenue 10/08 at 101.00 AAA 3,204,173
Bonds, Series 1997A, 6.000%, 4/01/16 - AMBAC Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 0.2% (0.1% of Total Investments)
885 Minnesota Housing Finance Agency, Rental Housing Bonds, Series 8/08 at 100.00 AAA 887,407
1995D, 5.950%, 2/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 0.5% (0.3% of Total Investments)
1,000 Jackson County Reorganized School District R-7, Lees Summit, 3/16 at 100.00 Aaa 1,056,440
Missouri, General Obligation Bonds, Series 2006, 5.250%, 3/01/25 -
MBIA Insured
495 Missouri Housing Development Commission, Multifamily Housing Revenue 6/08 at 101.00 AAA 498,287
Bonds, Brookstone Village Apartments, Series 1996A, 6.000%,
12/01/16 - FSA Insured (Alternative Minimum Tax)
750 Missouri Western State College, Auxiliary System Revenue Bonds, 10/13 at 100.00 AAA 755,633
Series 2003, 5.000%, 10/01/33 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
2,245 Total Missouri 2,310,360
------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 3.7% (2.2% of Total Investments)
Nebraska Public Power District, General Revenue Bonds, Series 2005A:
1,000 5.000%, 1/01/24 - FSA Insured 1/15 at 100.00 AAA 1,033,710
1,000 5.000%, 1/01/25 - FSA Insured 1/15 at 100.00 AAA 1,033,710
12,520 Nebraska Public Power District, Power Supply System Revenue Bonds, 1/16 at 100.00 A1 12,334,704
Series 2006A, 5.000%, 1/01/41 - FGIC Insured
3,875 Omaha Public Power District, Nebraska, Separate Electric System 2/17 at 100.00 AAA 3,835,514
Revenue Bonds, Nebraska City 2, Series 2006A, 5.000%, 2/01/49 -
AMBAC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
18,395 Total Nebraska 18,237,638
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 2.9% (1.8% of Total Investments)
5,000 Clark County, Nevada, Industrial Development Revenue Bonds, 7/10 at 102.00 Aaa 4,922,150
Southwest Gas Corporation, Series 2000C, 5.950%, 12/01/38 - AMBAC
Insured (Alternative Minimum Tax)
3,280 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, Series 7/14 at 100.00 Aa3 3,315,194
2004A-2, 5.125%, 7/01/24 - FGIC Insured
-----
52
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Nevada (continued)
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000:
$ 5,000 0.000%, 1/01/27 - AMBAC Insured No Opt. Call AAA $ 1,412,950
5,500 5.625%, 1/01/32 - AMBAC Insured 1/10 at 102.00 AAA 4,934,765
------------------------------------------------------------------------------------------------------------------------------------
18,780 Total Nevada 14,585,059
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 4.9% (2.9% of Total Investments)
Essex County Improvement Authority, New Jersey, Guaranteed Revenue
Bonds, Project Consolidation, Series 2004:
2,000 5.125%, 10/01/21 - MBIA Insured 10/14 at 100.00 Aaa 2,111,720
2,250 5.125%, 10/01/22 - MBIA Insured 10/14 at 100.00 Aaa 2,355,525
1,560 Mount Olive Township Board of Education, Morris County, New Jersey, 1/15 at 100.00 Aaa 1,634,069
General Obligation Bonds, Series 2004, 5.000%, 1/15/22 - MBIA
Insured
New Jersey Economic Development Authority, Revenue Bonds, Motor
Vehicle Surcharge, Series 2004A:
1,475 5.000%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 1,532,776
1,475 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 1,527,923
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2006C:
25,000 0.000%, 12/15/35 - AMBAC Insured (UB) No Opt. Call AAA 5,820,750
10,000 0.000%, 12/15/36 - AMBAC Insured (UB) No Opt. Call AAA 2,200,100
3,075 New Jersey Transit Corporation, Certificates of Participation No Opt. Call AAA 3,439,634
Refunding, Series 2003, 5.500%, 10/01/15 - FSA Insured
3,315 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 5.000%, 1/15 at 100.00 AAA 3,430,627
1/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
50,150 Total New Jersey 24,053,124
------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.9% (0.5% of Total Investments)
New Mexico Finance Authority, Public Project Revolving Fund Revenue
Bonds, Series 2004C:
1,415 5.000%, 6/01/22 - AMBAC Insured 6/14 at 100.00 AAA 1,471,331
1,050 5.000%, 6/01/24 - AMBAC Insured 6/14 at 100.00 AAA 1,079,894
2,000 New Mexico Finance Authority, Public Project Revolving Fund Revenue 6/15 at 100.00 Aaa 2,071,380
Bonds, Series 2005E, 5.000%, 6/15/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,465 Total New Mexico 4,622,605
------------------------------------------------------------------------------------------------------------------------------------
New York - 13.6% (8.2% of Total Investments)
1,120 Dormitory Authority of the State of New York, FHA-Insured Mortgage 2/15 at 100.00 Baa3 1,138,525
Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/23 -
FGIC Insured
Dormitory Authority of the State of New York, Insured Revenue Bonds,
New Island Hospital, Series 1999B:
3,400 5.750%, 7/01/19 (Pre-refunded 7/01/09) - MBIA Insured 7/09 at 101.00 AAA 3,574,658
5,750 6.000%, 7/01/24 (Pre-refunded 7/01/09) - MBIA Insured 7/09 at 101.00 AAA 6,061,880
1,000 Dormitory Authority of the State of New York, State Personal Income 3/15 at 100.00 AAA 1,040,630
Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 - AMBAC Insured
120 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 95,856
Driver Trust 1649, 2006, 6.799%, 2/15/47 - MBIA Insured (IF)
3,705 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AAA 3,456,432
Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
2,700 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 AAA 2,496,285
Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA Insured (UB)
-----
53
-----
NPX | Nuveen Insured Premium Income Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
New York (continued)
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 2006A:
$ 10,675 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 A- $ 10,938,459
5,000 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 A- 5,086,250
1,755 Nassau County, New York, General Obligation Improvement Bonds, 3/10 at 100.00 AAA 1,865,741
Series 2000E, 6.000%, 3/01/16 (Pre-refunded 3/01/10) - FSA Insured
7,500 Nassau Health Care Corporation, New York, County Guaranteed Revenue 8/09 at 102.00 AAA 7,976,850
Bonds, Series 1999, 5.750%, 8/01/29 (Pre-refunded 8/01/09) - FSA
Insured
5,000 New York City, New York, General Obligation Bonds, Fiscal Series 11/14 at 100.00 AAA 5,254,600
2004E, 5.000%, 11/01/21 - FSA Insured
6,165 New York Convention Center Development Corporation, Hotel Unit Fee 11/15 at 100.00 AAA 6,170,980
Revenue Bonds, Series 2005, 5.000%, 11/15/44 - AMBAC Insured (UB)
8,495 New York State Housing Finance Agency, Mortgage Revenue Refunding 5/08 at 100.00 AAA 8,511,225
Bonds, Housing Project, Series 1996A, 6.125%, 11/01/20 - FSA
Insured
3,770 New York State Thruway Authority, General Revenue Bonds, Series 7/15 at 100.00 AAA 3,921,667
2005G, 5.000%, 1/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
66,155 Total New York 67,590,038
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 1.8% (1.1% of Total Investments)
1,250 Appalachian State University, North Carolina, Revenue Bonds, Series 7/15 at 100.00 Aaa 1,278,750
2005, 5.000%, 7/15/30 - MBIA Insured
Mooresville, North Carolina, Enterprise System Revenue Bonds,
Series 2004:
2,225 5.000%, 5/01/23 - FGIC Insured 5/14 at 100.00 A 2,253,747
2,335 5.000%, 5/01/24 - FGIC Insured 5/14 at 100.00 A 2,357,883
2,900 Raleigh Durham Airport Authority, North Carolina, Airport Revenue 5/15 at 100.00 Aaa 2,979,257
Bonds, Series 2005A, 5.000%, 5/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,710 Total North Carolina 8,869,637
------------------------------------------------------------------------------------------------------------------------------------
North Dakota - 3.9% (2.3% of Total Investments)
10,715 Fargo, North Dakota, Health System Revenue Bonds, MeritCare 6/10 at 101.00 AAA 11,238,856
Obligated Group, Series 2000A, 5.600%, 6/01/21 - FSA Insured
8,000 North Dakota, Student Loan Trust Revenue Bonds, Series 2000B, 12/10 at 100.00 AAA 8,158,960
5.850%, 12/01/25 - AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
18,715 Total North Dakota 19,397,816
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 1.6% (1.0% of Total Investments)
8,100 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series 2006, 12/16 at 100.00 Aaa 7,317,783
4.250%, 12/01/32 - AMBAC Insured (UB)
700 Shaker Heights, Ohio, General Obligation Bonds, Series 2003, 12/13 at 100.00 AAA 727,398
5.250%, 12/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,800 Total Ohio 8,045,181
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 0.3% (0.2% of Total Investments)
1,500 Oklahoma Capitol Improvement Authority, State Facilities Revenue 7/15 at 100.00 AAA 1,540,800
Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
-----
54
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 3.3% (2.0% of Total Investments)
$ 1,520 Portland Housing Authority, Oregon, Multifamily Housing Revenue 7/10 at 100.00 Aaa $ 1,533,042
Bonds, Lovejoy Station Apartments, Series 2000, 6.000%, 7/01/33 -
MBIA Insured (Alternative Minimum Tax)
Portland, Oregon, Airport Way Urban Renewal and Redevelopment
Bonds, Series 2000A:
4,405 5.700%, 6/15/17 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 4,747,092
3,665 5.750%, 6/15/18 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 3,953,399
4,265 5.750%, 6/15/19 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 4,600,613
1,375 5.750%, 6/15/20 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 1,483,199
------------------------------------------------------------------------------------------------------------------------------------
15,230 Total Oregon 16,317,345
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 12.6% (7.6% of Total Investments)
12,620 Allegheny County Hospital Development Authority, Pennsylvania, 11/10 at 102.00 AAA 14,035,837
Insured Revenue Bonds, West Penn Allegheny Health System, Series
2000A, 6.500%, 11/15/30 (Pre-refunded 11/15/10) - MBIA Insured
2,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage Revenue 12/15 at 100.00 AAA 2,054,540
Bonds, Series 2005A, 5.000%, 12/01/23 - MBIA Insured
9,485 Berks County Municipal Authority, Pennsylvania, Hospital Revenue 11/09 at 102.00 AAA 10,190,779
Bonds, Reading Hospital and Medical Center, Series 1999, 6.000%,
11/01/19 (Pre-refunded 11/01/09) - FSA Insured
4,235 Delaware County Authority, Pennsylvania, Revenue Bonds, Villanova 8/16 at 100.00 AAA 4,338,249
University, Series 2006, 5.000%, 8/01/24 - AMBAC Insured
5,780 Pennsylvania Higher Educational Facilities Authority, Revenue 5/15 at 100.00 AAA 5,861,788
Bonds, Drexel University, Series 2005A, 5.000%, 5/01/28 - MBIA
Insured
4,585 Pennsylvania Public School Building Authority, Lease Revenue Bonds, 12/16 at 100.00 AAA 4,466,432
School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 -
FSA Insured (UB)
1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 6/16 at 100.00 AAA 1,089,543
2006A, 5.000%, 12/01/26 - AMBAC Insured
Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General
Ordinance, Fifth Series 2004A-1:
5,235 5.000%, 9/01/24 - FSA Insured 9/14 at 100.00 AAA 5,363,100
3,000 5.000%, 9/01/25 - FSA Insured 9/14 at 100.00 AAA 3,073,410
2,360 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, 6/08 at 102.00 AAA 2,407,766
Series 1997A, 5.125%, 8/01/27 - AMBAC Insured (ETM)
3,785 Reading School District, Berks County, Pennsylvania, General 1/16 at 100.00 AAA 3,934,356
Obligation Bonds, Series 2005, 5.000%, 1/15/25 - FSA Insured
1,705 Solebury Township, Pennsylvania, General Obligation Bonds, Series 6/15 at 100.00 Aaa 1,763,737
2005, 5.000%, 12/15/25 - AMBAC Insured
3,650 State Public School Building Authority, Pennsylvania, Lease Revenue 6/13 at 100.00 AAA 3,972,113
Bonds, Philadelphia School District, Series 2003, 5.000%, 6/01/29
(Pre-refunded 6/01/13) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
59,490 Total Pennsylvania 62,551,650
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 0.5% (0.3% of Total Investments)
2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/15 at 100.00 A3 2,482,275
2005RR, 5.000%, 7/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
-----
55
-----
NPX | Nuveen Insured Premium Income Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 0.4% (0.2% of Total Investments)
$ 1,955 Greenville County School District, South Carolina, Installment 12/16 at 100.00 AAA $ 1,995,957
Purchase Revenue Bonds, Series 2006, 5.000%, 12/01/28 - FSA
Insured
------------------------------------------------------------------------------------------------------------------------------------
Texas - 16.9% (10.1% of Total Investments)
Brazos River Authority, Texas, Revenue Refunding Bonds, Houston
Industries Inc., Series 1998C:
10,000 5.125%, 5/01/19 - AMBAC Insured 5/08 at 102.00 AAA 10,210,700
9,000 5.125%, 11/01/20 - AMBAC Insured 11/08 at 102.00 AAA 9,240,660
Corpus Christi, Texas, Utility System Revenue Bonds, Series 2004:
3,475 5.000%, 7/15/22 - FSA Insured 7/14 at 100.00 AAA 3,608,023
3,645 5.000%, 7/15/23 - FSA Insured 7/14 at 100.00 AAA 3,770,461
3,335 Dallas, Texas, Waterworks and Sewer System Revenue Bonds, Series 10/17 at 100.00 Aaa 2,397,465
2007, Municipal Securities Trust Certificates Series 7053,
3.152%, 10/01/32 - AMBAC Insured (IF)
12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 A+ 12,239,750
Refunding and Improvement Bonds, Series 2001A, 5.500%, 11/01/35 -
FGIC Insured (Alternative Minimum Tax)
5,000 Harris County Hospital District, Texas, Revenue Bonds, Series 2/17 at 100.00 AAA 5,078,750
2007A, 5.250%, 2/15/42 - MBIA Insured
4,485 Lower Colorado River Authority, Texas, Contract Revenue Refunding 5/12 at 100.00 AAA 4,654,668
Bonds, Transmission Services Corporation, Series 2003B, 5.000%,
5/15/21 - FSA Insured
10,000 Lower Colorado River Authority, Texas, Contract Revenue Refunding 5/13 at 100.00 AAA 10,030,700
Bonds, Transmission Services Corporation, Series 2003C, 5.000%,
5/15/33 - AMBAC Insured
4,151 Panhandle Regional Housing Finance Corporation, Texas, GNMA 7/12 at 105.00 Aaa 4,334,723
Collateralized Multifamily Housing Mortgage Revenue Bonds,
Renaissance of Amarillo Apartments, Series 2001A, 6.650%, 7/20/42
Tarrant County Health Facilities Development Corporation, Texas,
Hospital Revenue Bonds, Cook Children's Healthcare System,
Series 2000A:
6,725 5.750%, 12/01/17 (Pre-refunded 12/01/10) - FSA Insured 12/10 at 101.00 AAA 7,322,718
1,170 5.750%, 12/01/24 (Pre-refunded 12/01/10) - FSA Insured 12/10 at 101.00 AAA 1,273,990
6,330 5.750%, 12/01/24 (Pre-refunded 12/01/10) - FSA Insured 12/10 at 101.00 AAA 6,892,610
2,300 Texas State University System, Financing Revenue Refunding Bonds, 3/12 at 100.00 AAA 2,394,691
Series 2002, 5.000%, 3/15/18 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
82,116 Total Texas 83,449,909
------------------------------------------------------------------------------------------------------------------------------------
Utah - 2.3% (1.4% of Total Investments)
8,600 Intermountain Power Agency, Utah, Power Supply Revenue Refunding 7/13 at 100.00 AAA 9,065,346
Bonds, Series 2003A, 5.000%, 7/01/18 - FSA Insured
2,385 Mountain Regional Water Special Service District, Utah, Water 12/13 at 100.00 AAA 2,389,508
Revenue Bonds, Series 2003, 5.000%, 12/15/33 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,985 Total Utah 11,454,854
------------------------------------------------------------------------------------------------------------------------------------
Vermont - 0.2% (0.1% of Total Investments)
1,320 Vermont Educational and Health Buildings Financing Agency, Revenue 12/10 at 101.00 AAA 1,357,118
Bonds, Fletcher Allen Health Care Inc., Series 2000A, 6.000%,
12/01/23 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
-----
56
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Virginia - 3.1% (1.9% of Total Investments)
Greater Richmond Convention Center Authority, Virginia, Hotel Tax
Revenue Bonds, Series 2005:
$ 5,880 5.000%, 6/15/20 - MBIA Insured 6/15 at 100.00 AAA $ 6,136,250
5,000 5.000%, 6/15/22 - MBIA Insured 6/15 at 100.00 AAA 5,172,250
Loudoun County Industrial Development Authority, Virginia, Lease
Revenue Bonds, Public Safety Facilities, Series 2003A:
1,150 5.250%, 12/15/22 - FSA Insured 6/14 at 100.00 AAA 1,225,751
500 5.250%, 12/15/23 - FSA Insured 6/14 at 100.00 AAA 530,425
2,250 Virginia Housing Development Authority, Multifamily Housing Bonds, 7/08 at 102.00 AAA 2,288,678
Series 1997B, 6.050%, 5/01/17 - MBIA Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
14,780 Total Virginia 15,353,354
------------------------------------------------------------------------------------------------------------------------------------
Washington - 7.1% (4.3% of Total Investments)
10,000 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 10,039,700
Consolidated System Revenue Bonds, Series 2001B, 5.600%, 1/01/36 -
MBIA Insured (Alternative Minimum Tax)
1,370 Clark County School District 101, La Center, Washington, General 12/12 at 100.00 Aaa 1,432,678
Obligation Bonds, Series 2002, 5.000%, 12/01/22 - FSA Insured
5,230 Douglas County Public Utility District 1, Washington, Revenue 9/09 at 102.00 AAA 5,340,510
Bonds, Wells Hydroelectric, Series 1999A, 6.125%, 9/01/29 - MBIA
Insured (Alternative Minimum Tax)
1,545 Tacoma, Washington, General Obligation Bonds, Series 2004, 5.000%, 12/14 at 100.00 AAA 1,632,895
12/01/19 - MBIA Insured
3,950 Washington State Healthcare Facilities Authority, Revenue Bonds, 11/08 at 101.00 Aaa 4,015,570
Swedish Health Services, Series 1998, 5.125%, 11/15/22 - AMBAC
Insured
6,200 Washington State, General Obligation Purpose Bonds, Series 2003A, 7/12 at 100.00 AA+ 6,446,450
5.000%, 7/01/20 - FGIC Insured
10,855 Washington, General Obligation Bonds, Series 2000S-5, 0.000%, No Opt. Call AA+ 6,283,634
1/01/20 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
39,150 Total Washington 35,191,437
------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 1.6% (1.0% of Total Investments)
8,000 Pleasants County, West Virginia, Pollution Control Revenue Bonds, 5/08 at 100.00 AAA 8,022,400
Monongahela Power Company Pleasants Station Project, Series
1995C, 6.150%, 5/01/15 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 6.3% (3.8% of Total Investments)
7,000 La Crosse, Wisconsin, Resource Recovery Revenue Refunding Bonds, No Opt. Call AAA 7,527,870
Northern States Power Company Project, Series 1996, 6.000%,
11/01/21 - MBIA Insured (Alternative Minimum Tax)
12,750 Milwaukee County, Wisconsin, Airport Revenue Bonds, Series 2000A, 12/10 at 100.00 A1 12,855,698
5.750%, 12/01/25 - FGIC Insured (Alternative Minimum Tax)
6,250 Wisconsin Health and Educational Facilities Authority, Revenue 8/08 at 100.00 AAA 6,282,938
Bonds, Sinai Samaritan Medical Center Inc., Series 1996, 5.750%,
8/15/16 - MBIA Insured
4,225 Wisconsin State, General Obligation Bonds, Series 2006A, 4.750%, 5/16 at 100.00 AA- 4,306,713
5/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
30,225 Total Wisconsin 30,973,219
------------------------------------------------------------------------------------------------------------------------------------
$ 908,686 Total Long-Term Investments (cost $806,516,531) - 164.6% 815,163,701
============------------------------------------------------------------------------------------------------------------------------
-----
57
-----
NPX | Nuveen Insured Premium Income Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal
Amount (000) Description (1) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Short-Term Investments - 1.9% (1.2% of Total Investments)
$ 7,015 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, ROCS VMIG-1 $ 7,015,000
660, Variable Rate Demand Obligations, 4.010%, 5/01/34 -
FGIC Insured (5)
1,000 Massachusetts Turnpike Authority, Metropolitan Highway System A-1+ 1,000,000
Revenue Bonds, Senior Series 1997A, Trust 489, Variable Rate
Demand Obligations, 6.00%, 1/01/37 - MBIA Insured (5)
1,500 New York State Thruway Authority, Highway and Bridge Trust Fund VMIG-1 1,500,000
Bonds, Second General, Series 2003A, Trust M1J-Reg D, Variable
Rate Demand Obligations 5.450, 4/01/15 - MBIA Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
$ 9,515 Total Short-Term Investments (cost $9,515,000) 9,515,000
============------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $816,031,531) - 166.5% 824,678,701
---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (15.6)% (77,080,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.4% 16,490,286
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.3)% (6) (268,900,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 495,188,987
=====================================================================================================================
As of April 30, 2008, all of the bonds in the Portfolio of Investments,
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.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please
see the Portfolio Manager's Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Preferred Shares, at Liquidation Value as a percentage of total
investments is (32.6)%.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
-----
58
-----
NVG | Nuveen Insured Dividend Advantage Municipal Fund
| Portfolio of INVESTMENTS
April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Long-Term Municipal Bonds - 156.7% (99.2% of Total Investments)
Alabama - 4.3% (2.7% of Total Investments)
$ 5,310 Athens, Alabama, Water and Sewerage Revenue Warrants, Series 2002, 5/12 at 101.00 AAA $ 5,450,556
5.300%, 5/01/32 - MBIA Insured
3,045 Hoover, Alabama, General Obligation Bonds, Series 2003, 5.000%, 3/12 at 101.00 AAA 3,181,081
3/01/20 - MBIA Insured
10,000 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101.00 AAA 10,338,000
Warrants, Series 1999A, 5.375%, 2/01/36 (Pre-refunded 2/01/09) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
18,355 Total Alabama 18,969,637
------------------------------------------------------------------------------------------------------------------------------------
Alaska - 3.7% (2.4% of Total Investments)
15,000 Alaska, International Airport System Revenue Bonds, Series 2002B, 10/12 at 100.00 AAA 16,403,099
5.250%, 10/01/27 (Pre-refunded 10/01/12) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 2.2% (1.4% of Total Investments)
5,000 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/12 at 100.00 AA- 4,827,100
Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 - FGIC
Insured (Alternative Minimum Tax)
6,000 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic Plaza, No Opt. Call AA 4,656,300
Series 2005B, 0.000%, 7/01/37 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,000 Total Arizona 9,483,400
------------------------------------------------------------------------------------------------------------------------------------
California - 18.6% (11.8% of Total Investments)
2,000 Alameda Corridor Transportation Authority, California, Subordinate No Opt. Call AAA 1,079,160
Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/20 - AMBAC
Insured
California Educational Facilities Authority, Revenue Bonds,
Occidental College, Series 2005A:
1,485 5.000%, 10/01/26 - MBIA Insured 10/15 at 100.00 Aaa 1,537,970
1,565 5.000%, 10/01/27 - MBIA Insured 10/15 at 100.00 Aaa 1,615,831
6,000 California Infrastructure Economic Development Bank, First Lien 1/28 at 100.00 Aaa 6,408,840
Revenue Bonds, San Francisco Bay Area Toll Bridge, Series 2003A,
5.000%, 7/01/33 (Pre-refunded 1/01/28) - AMBAC Insured (UB)
California, General Obligation Bonds, Series 2000:
375 5.250%, 9/01/17 (Pre-refunded 9/01/10) - MBIA Insured 9/10 at 100.00 AAA 395,951
190 5.250%, 9/01/17 (Pre-refunded 9/01/10) - MBIA Insured 9/10 at 100.00 AAA 202,261
10,000 California, General Obligation Refunding Bonds, Series 2002, 2/12 at 100.00 AAA 10,170,200
5.000%, 2/01/23 - MBIA Insured
8,890 California, General Obligation Veterans Welfare Bonds, Series 12/08 at 101.00 AA- 9,036,152
1997BH, 5.400%, 12/01/14 (Alternative Minimum Tax)
3,000 California, General Obligation Veterans Welfare Bonds, Series 6/08 at 100.00 AAA 3,000,210
2001BZ, 5.375%, 12/01/24 - MBIA Insured (Alternative Minimum Tax)
2,425 Fullerton Public Financing Authority, California, Tax Allocation 9/15 at 100.00 AAA 2,448,571
Revenue Bonds, Series 2005, 5.000%, 9/01/27 - AMBAC Insured
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
1,000 5.750%, 6/01/47 6/17 at 100.00 BBB 897,890
365 5.125%, 6/01/47 6/17 at 100.00 BBB 295,398
-----
59
-----
NVG | Nuveen Insured Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
California (continued)
$ 18,665 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A2 $ 17,967,676
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
5.000%, 6/01/35 - FGIC Insured (UB)
1,990 Kern Community College District, California, General Obligation No Opt. Call AAA 821,134
Bonds, Series 2006, 0.000%, 11/01/25 - FSA Insured
7,935 Los Angeles, California, Certificates of Participation, Series 4/12 at 100.00 AAA 8,125,519
2002, 5.300%, 4/01/32 - AMBAC Insured
5,280 Northern California Power Agency, Revenue Refunding Bonds, 7/08 at 101.00 AAA 5,360,256
Hydroelectric Project 1, Series 1998A, 5.200%, 7/01/32
(Pre-refunded 7/01/08) - MBIA Insured
2,220 Northern California Power Agency, Revenue Refunding Bonds, 7/08 at 101.00 AAA 2,237,383
Hydroelectric Project 1, Series 1998A, 5.200%, 7/01/32 - MBIA
Insured
2,320 Sacramento Municipal Utility District, California, Electric Revenue 8/11 at 100.00 AAA 2,449,433
Bonds, Series 2001P, 5.250%, 8/15/18 - FSA Insured
6,720 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/17 at 100.00 Aaa 6,183,072
Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30 -
MBIA Insured (UB)
1,690 Ventura County Community College District, California, General 8/15 at 100.00 AAA 1,738,520
Obligation Bonds, Series 2005B, 5.000%, 8/01/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
84,115 Total California 81,971,427
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 5.6% (3.6% of Total Investments)
17,300 Adams County, Colorado, FHA-Insured Mortgage Revenue Bonds, Platte 8/15 at 100.00 AAA 17,732,153
Valley Medical Center, Series 2005, 5.000%, 8/01/24 - MBIA
Insured
750 Arkansas River Power Authority, Colorado, Power Revenue Bonds, 10/16 at 100.00 A- 739,808
Series 2006, 5.250%, 10/01/32 - XLCA Insured
17,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AAA 6,384,180
Series 2000B, 0.000%, 9/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
35,050 Total Colorado 24,856,141
------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 1.6% (1.0% of Total Investments)
6,805 District of Columbia, Revenue Bonds, Georgetown University, Series 4/17 at 100.00 AAA 6,153,285
2007A, 4.500%, 4/01/42 - AMBAC Insured
935 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 772,385
Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals
1606, 8.033%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
7,740 Total District of Columbia 6,925,670
------------------------------------------------------------------------------------------------------------------------------------
Florida - 11.6% (7.4% of Total Investments)
Florida Municipal Loan Council, Revenue Bonds, Series 2003B:
2,305 5.250%, 12/01/17 - MBIA Insured 12/13 at 100.00 AAA 2,482,785
1,480 5.250%, 12/01/18 - MBIA Insured 12/13 at 100.00 AAA 1,567,557
11,600 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 11,720,408
Revenue Bonds, Series 2002B, 5.125%, 10/01/21 - FSA Insured
(Alternative Minimum Tax)
8,155 Lee County, Florida, Solid Waste System Revenue Refunding Bonds, 10/11 at 100.00 Aaa 8,467,826
Series 2001, 5.625%, 10/01/13 - MBIA Insured (Alternative
Minimum Tax)
Miami-Dade County, Florida, Aviation Revenue Bonds, Miami
International Airport, Series 2002:
7,165 5.625%, 10/01/15 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 A2 7,394,137
5,600 5.750%, 10/01/16 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 A2 5,775,616
10,000 5.125%, 10/01/21 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 A2 9,831,100
2,000 5.250%, 10/01/22 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 A2 1,983,940
-----
60
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Florida (continued)
$ 1,000 South Miami Health Facilities Authority, Florida, Hospital Revenue, 8/17 at 100.00 AA- $ 975,890
Baptist Health System Obligation Group, Series 2007, 5.000%,
8/15/42
1,000 Tallahassee, Florida, Energy System Revenue Bonds, Series 2005, 10/15 at 100.00 AAA 1,024,230
5.000%, 10/01/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
50,305 Total Florida 51,223,489
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 2.2% (1.4% of Total Investments)
6,925 Atlanta and Fulton County Recreation Authority, Georgia, Guaranteed 12/15 at 100.00 AAA 7,091,546
Revenue Bonds, Park Improvement, Series 2005A, 5.000%, 12/01/30 -
MBIA Insured
1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 2004, 11/14 at 100.00 AAA 1,039,340
5.000%, 11/01/22 - FSA Insured
1,695 Georgia Housing and Finance Authority, Single Family Mortgage 12/11 at 100.00 AAA 1,697,085
Bonds, Series 2002B-2, 5.500%, 6/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,620 Total Georgia 9,827,971
------------------------------------------------------------------------------------------------------------------------------------
Idaho - 1.0% (0.6% of Total Investments)
Idaho Housing and Finance Association, Grant and Revenue
Anticipation Bonds, Federal Highway Trust Funds, Series 2006:
3,000 5.000%, 7/15/23 - MBIA Insured 7/16 at 100.00 Aaa 3,135,300
1,130 5.000%, 7/15/24 - MBIA Insured 7/16 at 100.00 Aaa 1,175,426
------------------------------------------------------------------------------------------------------------------------------------
4,130 Total Idaho 4,310,726
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 12.3% (7.8% of Total Investments)
10,000 Bolingbrook, Illinois, General Obligation Bonds, Series 2002A, 1/12 at 100.00 A2(4) 10,849,800
5.375%, 1/01/38 (Pre-refunded 1/01/12) - FGIC Insured
1,305 Chicago, Illinois, General Obligation Bonds, Series 2001A, 5.500%, 1/11 at 101.00 AAA 1,364,782
1/01/38 - MBIA Insured
Chicago, Illinois, General Obligation Bonds, Series 2001A:
50 5.500%, 1/01/38 (Pre-refunded 1/01/11) - MBIA Insured 1/11 at 101.00 AAA 54,161
3,645 5.500%, 1/01/38 (Pre-refunded 1/01/11) - MBIA Insured 1/11 at 101.00 AAA 3,948,300
Chicago, Illinois, Second Lien Passenger Facility Charge Revenue
Bonds, O'Hare International Airport, Series 2001C:
4,250 5.500%, 1/01/16 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,345,838
4,485 5.500%, 1/01/17 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,575,552
4,730 5.500%, 1/01/18 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,808,045
2,930 5.500%, 1/01/19 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 2,973,452
3,600 Chicago, Illinois, Third Lien General Airport Revenue Bonds, O'Hare 1/16 at 100.00 AAA 3,693,384
International Airport, Series 2005A, 5.250%, 1/01/24 - MBIA
Insured
3,000 Chicago, Illinois, Third Lien General Airport Revenue Refunding 1/12 at 100.00 AAA 3,085,470
Bonds, O'Hare International Airport, Series 2002A, 5.750%,
1/01/17 - MBIA Insured (Alternative Minimum Tax)
4,000 Cicero, Cook County, Illinois, General Obligation Corporate Purpose 12/12 at 101.00 AAA 4,177,960
Bonds, Series 2002, 5.000%, 12/01/21 - MBIA Insured
730 DuPage County Community School District 200, Wheaton, Illinois, 10/13 at 100.00 Aaa 777,151
General Obligation Bonds, Series 2003C, 5.250%, 10/01/22 - FSA
Insured
770 DuPage County Community School District 200, Wheaton, Illinois, 10/13 at 100.00 Aaa 853,607
General Obligation Bonds, Series 2003C, 5.250%, 10/01/22
(Pre-refunded 10/01/13) - FSA Insured
3,500 Illinois Municipal Electric Agency, Power Supply System Revenue 2/17 at 100.00 A+ 3,418,975
Bonds, Series 2007A, 5.000%, 2/01/35 - FGIC Insured
5,000 Illinois, General Obligation Bonds, Illinois FIRST Program, Series 4/12 at 100.00 AAA 5,252,250
2002, 5.250%, 4/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
51,995 Total Illinois 54,178,727
------------------------------------------------------------------------------------------------------------------------------------
-----
61
-----
NVG | Nuveen Insured Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 16.3% (10.3% of Total Investments)
$ 3,380 Evansville, Indiana, Sewerage Works Revenue Refunding Bonds, Series 7/13 at 100.00 AAA $ 3,506,682
2003A, 5.000%, 7/01/20 - AMBAC Insured
Indiana Bond Bank, Special Program Bonds, Hendricks County
Redevelopment District, Series 2002D:
2,500 5.375%, 4/01/23 (Pre-refunded 4/01/12) - AMBAC Insured 4/12 at 100.00 AAA 2,723,750
7,075 5.250%, 4/01/26 (Pre-refunded 4/01/12) - AMBAC Insured 4/12 at 100.00 AAA 7,675,668
7,000 5.250%, 4/01/30 (Pre-refunded 4/01/12) - AMBAC Insured 4/12 at 100.00 AAA 7,594,300
10,000 Indiana Health Facility Financing Authority, Hospital Revenue 7/12 at 100.00 AAA 10,103,600
Bonds, Marion General Hospital, Series 2002, 5.250%, 7/01/32 -
AMBAC Insured
3,200 Indiana Municipal Power Agency, Power Supply Revenue Bonds, Series 1/17 at 100.00 AAA 3,197,184
2007A, 5.000%, 1/01/42 - MBIA Insured
25,000 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 27,264,997
Waterworks Project, Series 2002A, 5.250%, 7/01/33 (Pre-refunded
7/01/12) - MBIA Insured
Northern Wells Community School Building Corporation, Wells County,
Indiana, First Mortgage Bonds, Series 2001:
420 5.250%, 1/15/19 (Pre-refunded 7/15/12) - FGIC Insured 7/12 at 100.00 AA(4) 458,384
430 5.250%, 7/15/19 (Pre-refunded 7/15/12) - FGIC Insured 7/12 at 100.00 AA(4) 469,298
1,675 5.400%, 7/15/23 (Pre-refunded 7/15/12) - FGIC Insured 7/12 at 100.00 AA(4) 1,837,961
6,960 Valparaiso Middle School Building Corporation, Indiana, First 1/13 at 100.00 AAA 7,156,272
Mortgage Refunding Bonds, Series 2002, 5.000%, 7/15/24 - MBIA
Insured
------------------------------------------------------------------------------------------------------------------------------------
67,640 Total Indiana 71,988,096
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 5.0% (3.1% of Total Investments)
10,000 Louisiana Public Facilities Authority, Revenue Bonds, Archdiocese 7/17 at 100.00 A+ 8,645,500
of New Orleans, Series 2007, 4.500%, 7/01/37 - CIFG Insured
1,500 Louisiana Public Facilities Authority, Revenue Bonds, Baton Rouge 7/14 at 100.00 AAA 1,543,635
General Hospital, Series 2004, 5.250%, 7/01/24 - MBIA Insured
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006:
770 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 Aaa 761,384
6,240 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA- 5,911,838
2,030 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA- 1,923,242
3 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, Residuals 5/16 at 100.00 AA- 2,807
660-3, 5.082%, 5/01/41 - FGIC Insured (IF)
3,085 New Orleans, Louisiana, General Obligation Refunding Bonds, Series 9/12 at 100.00 AAA 3,108,014
2002, 5.125%, 9/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
23,628 Total Louisiana 21,896,420
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 0.2% (0.1% of Total Investments)
925 Massachusetts Water Resources Authority, General Revenue Bonds, 2/17 at 100.00 Aaa 728,771
Series 2007, Residual Trust 7039, 4.069%, 8/01/46 - FSA Insured
(IF)
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 0.3% (0.2% of Total Investments)
1,500 Michigan State Hospital Finance Authority, Revenue Bonds, Trinity 12/16 at 100.00 AA 1,495,815
Health Care Group, Series 2006A, 5.000%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 2.5% (1.6% of Total Investments)
1,600 St. Louis County Pattonville School District R3, Missouri, General 3/14 at 100.00 AAA 1,731,648
Obligation Bonds, Series 2004, 5.250%, 3/01/19 - FSA Insured
8,735 St. Louis, Missouri, Airport Revenue Bonds, Airport Development 7/11 at 100.00 AAA 9,386,282
Program, Series 2001A, 5.250%, 7/01/31 (Pre-refunded 7/01/11) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,335 Total Missouri 11,117,930
------------------------------------------------------------------------------------------------------------------------------------
-----
62
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 2.0% (1.2% of Total Investments)
$ 6,360 Lincoln, Nebraska, Electric System Revenue Bonds, Series 2005, 9/15 at 100.00 AA $ 6,472,890
5.000%, 9/01/32
Municipal Energy Agency of Nebraska, Power Supply System Revenue
Bonds, Series 2003A:
1,000 5.250%, 4/01/20 - FSA Insured 4/13 at 100.00 AAA 1,063,780
1,000 5.250%, 4/01/21 - FSA Insured 4/13 at 100.00 AAA 1,059,410
------------------------------------------------------------------------------------------------------------------------------------
8,360 Total Nebraska 8,596,080
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 2.1% (1.4% of Total Investments)
8,750 Truckee Meadows Water Authority, Nevada, Water Revenue Bonds, 7/11 at 100.00 AAA 9,410,625
Series 2001A, 5.250%, 7/01/34 (Pre-refunded 7/01/11) -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 0.5% (0.3% of Total Investments)
2,150 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 2,380,480
System Bonds, Series 2006A, 5.250%, 12/15/20
------------------------------------------------------------------------------------------------------------------------------------
New York - 4.9% (3.1% of Total Investments)
1,120 Dormitory Authority of the State of New York, FHA-Insured Mortgage 2/15 at 100.00 Baa3 1,138,525
Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%,
8/01/23 - FGIC Insured
3,660 Dormitory Authority of the State of New York, Revenue Bonds, Mental 2/15 at 100.00 AAA 3,752,891
Health Services Facilities Improvements, Series 2005B, 5.000%,
2/15/23 - AMBAC Insured
3,130 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 Aaa 2,920,008
Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
2,400 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 Aaa 2,218,920
Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA Insured (UB)
1,500 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 AAA 1,518,765
Revenue Bonds, Series 2005B, 5.000%, 11/15/30 - AMBAC Insured
10,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 10,170,300
Revenue Refunding Bonds, Series 2002A, 5.000%, 11/15/30 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
21,810 Total New York 21,719,409
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 0.5% (0.3% of Total Investments)
2,125 North Carolina Medical Care Commission, FHA-Insured Mortgage 10/13 at 100.00 AAA 2,260,809
Revenue Bonds, Betsy Johnson Regional Hospital Project, Series
2003, 5.375%, 10/01/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 0.6% (0.4% of Total Investments)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series 2007A-2:
70 5.125%, 6/01/24 6/17 at 100.00 BBB 65,935
710 5.875%, 6/01/30 6/17 at 100.00 BBB 660,655
685 5.750%, 6/01/34 6/17 at 100.00 BBB 619,233
1,570 5.875%, 6/01/47 6/17 at 100.00 BBB 1,389,324
------------------------------------------------------------------------------------------------------------------------------------
3,035 Total Ohio 2,735,147
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 0.5% (0.3% of Total Investments)
2,000 Oklahoma Development Finance Authority, Revenue Bonds, Saint John 2/17 at 100.00 AA- 1,969,840
Health System, Series 2007, 5.000%, 2/15/37
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 1.5% (1.0% of Total Investments)
Oregon, General Obligation Veterans Welfare Bonds, Series 82:
4,530 5.375%, 12/01/31 12/11 at 100.00 AA 4,576,070
2,115 5.500%, 12/01/42 12/11 at 100.00 AA 2,128,536
------------------------------------------------------------------------------------------------------------------------------------
6,645 Total Oregon 6,704,606
------------------------------------------------------------------------------------------------------------------------------------
-----
63
-----
NVG | Nuveen Insured Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 3.5% (2.2% of Total Investments)
$ 4,500 Allegheny County, Pennsylvania, Airport Revenue Refunding Bonds, No Opt. Call AAA $ 4,763,340
Pittsburgh International Airport, Series 1997A, 5.750%, 1/01/13 -
MBIA Insured (Alternative Minimum Tax)
4,130 Pennsylvania Public School Building Authority, Lease Revenue Bonds, 12/16 at 100.00 Aaa 4,023,198
School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 -
FSA Insured (UB)
1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 6/16 at 100.00 AAA 1,089,543
2006A, 5.000%, 12/01/26 - AMBAC Insured
2,000 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 2,139,020
Bonds, Series 2003B, 5.250%, 11/15/18 - FSA Insured
2,000 Reading School District, Berks County, Pennsylvania, General 1/16 at 100.00 AAA 2,135,400
Obligation Bonds, Series 2005, 5.000%, 1/15/19 - FSA Insured
1,000 State Public School Building Authority, Pennsylvania, Lease Revenue 6/13 at 100.00 AAA 1,088,250
Bonds, Philadelphia School District, Series 2003, 5.000%,
6/01/23 (Pre-refunded 6/01/13) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
14,680 Total Pennsylvania 15,238,751
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 0.4% (0.3% of Total Investments)
1,225 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, 8/01/21 - No Opt. Call A+ 1,225,821
CIFG Insured
5,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call A+ 672,200
Bonds, Series 2007A, 0.000%, 8/01/42 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,225 Total Puerto Rico 1,898,021
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 1.5% (0.9% of Total Investments)
1,950 Greenville County School District, South Carolina, Installment 12/16 at 100.00 AAA 1,990,853
Purchase Revenue Bonds, Series 2006, 5.000%, 12/01/28 -
FSA Insured
Greenville, South Carolina, Tax Increment Revenue Improvement
Bonds, Series 2003:
1,000 5.500%, 4/01/17 - MBIA Insured 4/13 at 100.00 AAA 1,082,260
2,300 5.000%, 4/01/21 - MBIA Insured 4/13 at 100.00 AAA 2,360,881
1,000 Scago Educational Facilities Corporation, South Carolina, 10/15 at 100.00 AAA 1,051,680
Installment Purchase Revenue Bonds, Spartanburg County School
District 5, Series 2005, 5.000%, 4/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,250 Total South Carolina 6,485,674
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 9.9% (6.2% of Total Investments)
Memphis, Tennessee, Sanitary Sewerage System Revenue Bonds,
Series 2004:
1,495 5.000%, 10/01/19 - FSA Insured 10/14 at 100.00 AAA 1,591,218
1,455 5.000%, 10/01/20 - FSA Insured 10/14 at 100.00 AAA 1,537,455
1,955 5.000%, 10/01/21 - FSA Insured 10/14 at 100.00 AAA 2,051,909
10,000 Memphis-Shelby County Sports Authority, Tennessee, Revenue Bonds, 11/12 at 100.00 AAA 10,899,800
Memphis Arena, Series 2002A, 5.125%, 11/01/28 (Pre-refunded
11/01/12) - AMBAC Insured
10,000 Memphis-Shelby County Sports Authority, Tennessee, Revenue Bonds, 11/12 at 100.00 AAA 10,899,800
Memphis Arena, Series 2002B, 5.125%, 11/01/29 (Pre-refunded
11/01/12) - AMBAC Insured
15,195 Tennessee State School Bond Authority, Higher Educational 5/12 at 100.00 AAA 16,522,130
Facilities Second Program Bonds, Series 2002A, 5.250%, 5/01/32
(Pre-refunded 5/01/12) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
40,100 Total Tennessee 43,502,312
------------------------------------------------------------------------------------------------------------------------------------
-----
64
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Texas - 25.8% (16.3% of Total Investments)
$ 3,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 A+ $ 3,619,945
Refunding and Improvement Bonds, Series 2001A, 5.750%, 11/01/13 -
FGIC Insured (Alternative Minimum Tax)
10,000 Gainesville Hospital District, Texas, Limited Tax General 8/11 at 100.00 Aaa 10,120,800
Obligation Bonds, Series 2002, 5.375%, 8/15/32 - MBIA Insured
1,210 Galveston, Texas, General Obligation Bonds, Series 2001, 5.250%, 5/11 at 100.00 AAA 1,252,048
5/01/21 - AMBAC Insured
Harris County Health Facilities Development Corporation, Texas,
Thermal Utility Revenue Bonds, TECO Project, Series 2003:
2,240 5.000%, 11/15/16 - MBIA Insured 11/13 at 100.00 AAA 2,359,190
2,355 5.000%, 11/15/17 - MBIA Insured 11/13 at 100.00 AAA 2,464,531
13,000 Houston Area Water Corporation, Texas, Contract Revenue Bonds, 3/12 at 100.00 Baa3(4) 14,023,750
Northeast Water Purification Plant, Series 2002, 5.125%, 3/01/32
(Pre-refunded 3/01/12) - FGIC Insured
1,000 Houston, Texas, First Lien Combined Utility System Revenue Bonds, 5/14 at 100.00 AA 1,020,710
Series 2004A, 5.250%, 5/15/24 - FGIC Insured
4,345 San Antonio, Texas, Water System Senior Lien Revenue Refunding 5/12 at 100.00 AAA 4,693,426
Bonds, Series 2002, 5.500%, 5/15/17 - FSA Insured
5,875 Texas Department of Housing and Community Affairs, Residential 7/11 at 100.00 AAA 6,025,459
Mortgage Revenue Bonds, Series 2001A, 5.350%, 7/01/33
(Alternative Minimum Tax)
8,415 Texas Department of Housing and Community Affairs, Single Family 3/12 at 100.00 AAA 8,414,327
Mortgage Bonds, Series 2002B, 5.550%, 9/01/33 - MBIA Insured
(Alternative Minimum Tax)
Texas Public Finance Authority, Revenue Bonds, Texas Southern
University Financing System, Series 2002:
3,520 5.125%, 11/01/20 - MBIA Insured 5/12 at 100.00 Aaa 3,606,874
3,520 5.125%, 11/01/21 - MBIA Insured 5/12 at 100.00 Aaa 3,592,653
Texas Student Housing Authority, Revenue Bonds, Austin Project,
Senior Series 2001A:
9,400 5.375%, 1/01/23 - MBIA Insured 1/12 at 102.00 Aaa 9,603,980
11,665 5.500%, 1/01/33 - MBIA Insured 1/12 at 102.00 Aaa 11,771,385
5,000 Texas Water Development Board, Senior Lien State Revolving Fund 1/10 at 100.00 AAA 5,192,300
Revenue Bonds, Series 1999B, 5.250%, 7/15/17
9,145 Texas, General Obligation Bonds, Veterans Housing Assistance 6/12 at 100.00 Aa1 9,299,002
Program Fund II, Series 2002A-1, 5.250%, 12/01/22
(Alternative Minimum Tax)
Williamson County, Texas, General Obligation Bonds, Series 2002:
3,000 5.250%, 2/15/22 (Pre-refunded 2/15/12) - FSA Insured 2/12 at 100.00 AAA 3,249,360
7,340 5.250%, 2/15/23 (Pre-refunded 2/15/12) - FSA Insured 2/12 at 100.00 AAA 7,950,101
5,000 5.250%, 2/15/25 (Pre-refunded 2/15/12) - FSA Insured 2/12 at 100.00 AAA 5,415,600
------------------------------------------------------------------------------------------------------------------------------------
109,530 Total Texas 113,675,441
------------------------------------------------------------------------------------------------------------------------------------
Washington - 12.7% (8.0% of Total Investments)
5,385 Energy Northwest, Washington Public Power, Nine Canyon Wind Project 7/16 at 100.00 AAA 5,074,555
Revenue Bonds, Series 2006A, 4.500%, 7/01/30 - AMBAC Insured
6,600 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/12 at 100.00 AAA 7,004,514
Columbia Generating Station - Nuclear Project 2, Series 2002B,
5.350%, 7/01/18 - FSA Insured
7,675 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/12 at 100.00 AAA 8,251,393
Nuclear Project 1, Series 2002A, 5.500%, 7/01/15 - MBIA Insured
-----
65
-----
NVG | Nuveen Insured Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Washington (continued)
$ 2,500 Port of Seattle, Washington, Revenue Refunding Bonds, Series 2002D, 11/12 at 100.00 Aa2 $ 2,592,900
5.750%, 11/01/15 - FGIC Insured (Alternative Minimum Tax)
2,200 Snohomish County School District 2, Everett, Washington, General 12/13 at 100.00 AAA 2,361,678
Obligation Bonds, Series 2003B, 5.000%, 6/01/17 - FSA Insured
3,255 Thurston and Pierce Counties School District, Washington, General 6/13 at 100.00 Aaa 3,528,908
Obligation Bonds, Yelm Community Schools, Series 2003, 5.250%,
12/01/16 - FSA Insured
Washington State Economic Development Finance Authority, Wastewater
Revenue Bonds, LOTT Project, Series 2002:
2,000 5.500%, 6/01/17 - AMBAC Insured 6/12 at 100.00 Aaa 2,146,120
4,325 5.125%, 6/01/22 - AMBAC Insured 6/12 at 100.00 Aaa 4,445,798
15,000 Washington State Healthcare Facilities Authority, Revenue Bonds, 8/13 at 102.00 AAA 15,080,849
Harrison Memorial Hospital, Series 1998, 5.000%, 8/15/28 -
AMBAC Insured
5,170 Whitman County School District 267, Pullman, Washington, General 6/12 at 100.00 Aaa 5,411,542
Obligation Bonds, Series 2002, 5.000%, 12/01/20 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
54,110 Total Washington 55,898,257
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 2.9% (1.9% of Total Investments)
11,950 Wisconsin, Transportation Revenue Refunding Bonds, Series 2002-1, 7/12 at 100.00 AAA 12,974,473
5.125%, 7/01/18 (Pre-refunded 7/01/12) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 689,058 Total Long-Term Municipal Bonds (cost $669,216,925) 690,827,244
============------------------------------------------------------------------------------------------------------------------------
Shares Description (1) Value
------------------------------------------------------------------------------------------------------------------------------------
Investment Companies - 0.4% (0.2% of Total Investments)
21,133 BlackRock MuniHoldings Fund Inc. 312,134
13,600 BlackRock MuniEnhanced Fund Inc. 139,672
7,920 Dreyfus Strategic Municipal Fund 69,458
7,600 Morgan Stanley Dean Witter Insured Municipal Income Trust 104,424
9,668 Morgan Stanley Quality Municipal Income Trust 122,010
26,280 PIMCO Municipal Income Fund II 369,234
9,500 Van Kampen Advantage Municipal Income Fund II 116,090
28,680 Van Kampen Investment Grade Municipal Trust 403,242
6,240 Van Kampen Municipal Trust 92,227
------------------------------------------------------------------------------------------------------------------------------------
Total Investment Companies (cost $1,683,346) 1,728,491
---------------------------------------------------------------------------------------------------------------------
Total Long-Term Investments (cost $670,900,271) - 157.1% 692,555,735
---------------------------------------------------------------------------------------------------------------------
-----
66
-----
Principal
Amount (000) Description (1) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Short-Term Investments - 0.9% (0.6% of Total Investments)
$ 4,070 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, ROCS 660, Variable Rate VMIG-1 $ 4,070,000
Demand obligations, 4.010%, 5/01/41 - FGIC Insured (5)
============------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $4,070,000) 4,070,000
---------------------------------------------------------------------------------------------------------------------
Total Investments (cost $674,970,271) - 158.0% 696,625,735
---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (7.9)% (34,933,334)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.7% 12,180,354
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.8)% (6) (233,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 440,872,755
=====================================================================================================================
As of April 30, 2008, at least 80% of the Fund's net assets (including net
assets attributable to Preferred shares) are invested in municipal
securities that are either covered by Original Issue Insurance, Secondary
Market Insurance or Portfolio Insurance which ensures the timely payment
of principal and interest. Up to 20% of the Fund's net assets (including
net assets attributable to Preferred shares) may be invested in municipal
securities that are (i) either backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency securities (also
ensuring the timely payment of principal and interest), or (ii) rated, at
the time of investment, within the four highest grades (Baa or BBB or
better by Moody's, Standard & Poor's or Fitch) or unrated but judged to be
of comparable quality by the Adviser.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please
see the Portfolio Manager's Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the underlying insurers
both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Preferred Shares, at Liquidation Value as a percentage of total
investments is (33.4)%.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
-----
67
-----
NEA | Nuveen Insured Tax-Free Advantage Municipal Fund
| Portfolio of INVESTMENTS
April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Alabama - 8.7% (5.6% of Total Investments)
$ 1,000 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 Aa1 $ 987,990
Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/36
5,655 Colbert County-Northwest Health Care Authority, Alabama, Revenue 6/13 at 101.00 Baa3 5,445,595
Bonds, Helen Keller Hospital, Series 2003, 5.750%, 6/01/27
3,100 Huntsville Healthcare Authority, Alabama, Revenue Bonds, Series 5/12 at 102.00 AAA 3,426,926
1998A, 5.400%, 6/01/22 (Pre-refunded 5/14/12) - MBIA Insured
6,280 Jefferson County, Alabama, Sewer Revenue Capital Improvement 8/12 at 100.00 AAA 6,797,284
Warrants, Series 2002D, 5.000%, 2/01/32 (Pre-refunded 8/01/12) -
FGIC Insured
1,750 Montgomery, Alabama, General Obligation Warrants, Series 2003, 5/12 at 101.00 AAA 1,814,733
5.000%, 5/01/21 - AMBAC Insured
4,500 Sheffield, Alabama, Electric Revenue Bonds, Series 2003, 5.500%, 7/13 at 100.00 Aaa 4,633,830
7/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
22,285 Total Alabama 23,106,358
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 5.6% (3.6% of Total Investments)
10,000 Maricopa County Pollution Control Corporation, Arizona, Revenue 11/12 at 100.00 AAA 9,847,300
Bonds, Arizona Public Service Company - Palo Verde Project,
Series 2002A, 5.050%, 5/01/29 - AMBAC Insured
6,545 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic Plaza, No Opt. Call AA 5,079,247
Series 2005B, 0.000%, 7/01/37 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
16,545 Total Arizona 14,926,547
------------------------------------------------------------------------------------------------------------------------------------
California - 30.0% (19.2% of Total Investments)
26,300 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 26,523,809
Department of General Services, Capital East End Project,
Series 2002A, 5.000%, 12/01/27 - AMBAC Insured
250 California State, General Obligation Bonds, Series 2002, 5.250%, 4/12 at 100.00 A1 254,590
4/01/30 - XLCA Insured
10,000 California State, General Obligation Bonds, Series 2002, 5.250%, 4/12 at 100.00 A1(4) 10,883,800
4/01/30 (Pre-refunded 4/01/12) - XLCA Insured
5 California State, General Obligation Bonds, Series 2004, 5.000%, 4/14 at 100.00 AAA 5,066
4/01/31 - AMBAC Insured
7,495 California State, General Obligation Bonds, Series 2004, 5.000%, 4/14 at 100.00 AAA 8,253,194
4/01/31 (Pre-refunded 4/01/14) - AMBAC Insured
2,910 Cathedral City Public Financing Authority, California, Tax 8/12 at 102.00 AAA 2,986,737
Allocation Bonds, Housing Set-Aside, Series 2002D, 5.000%,
8/01/26 - MBIA Insured
250 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 202,328
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1,
5.125%, 6/01/47
8,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A 7,701,120
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
5.000%, 6/01/35 - FGIC Insured (UB)
2,500 Irvine Public Facilities and Infrastructure Authority, 9/13 at 100.00 AAA 2,579,575
California, Assessment Revenue Bonds, Series 2003C, 5.000%,
9/02/23 - AMBAC Insured
4,000 Montara Sanitation District, California, General Obligation 8/11 at 101.00 A+ 4,027,240
Bonds, Series 2003, 5.000%, 8/01/28 - FGIC Insured
-----
68
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
California (continued)
Plumas County, California, Certificates of Participation, Capital
Improvement Program, Series 2003A:
$ 1,130 5.250%, 6/01/19 - AMBAC Insured 6/13 at 101.00 AAA $ 1,189,314
1,255 5.250%, 6/01/21 - AMBAC Insured 6/13 at 101.00 AAA 1,306,468
1,210 Redding Joint Powers Financing Authority, California, Lease 3/13 at 100.00 AAA 1,232,736
Revenue Bonds, Capital Improvement Projects, Series 2003A,
5.000%, 3/01/23 - AMBAC Insured
3,750 Sacramento Municipal Utility District, California, Electric 8/13 at 100.00 AAA 3,798,413
Revenue Bonds, Series 2003R, 5.000%, 8/15/28 - MBIA Insured
1,500 San Diego Community College District, California, General 5/13 at 100.00 AAA 1,532,595
Obligation Bonds, Series 2003A, 5.000%, 5/01/28 - FSA Insured
1,055 Turlock Irrigation District, California, Certificates of 1/13 at 100.00 AAA 1,064,980
Participation, Series 2003A, 5.000%, 1/01/28 - MBIA Insured
6,300 University of California, Revenue Bonds, Multi-Purpose Projects, 5/13 at 100.00 AAA 6,397,965
Series 2003A, 5.000%, 5/15/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
77,910 Total California 79,939,930
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 5.7% (3.7% of Total Investments)
Bowles Metropolitan District, Colorado, General Obligation Bonds,
Series 2003:
4,300 5.500%, 12/01/23 - FSA Insured 12/13 at 100.00 AAA 4,657,889
3,750 5.500%, 12/01/28 - FSA Insured 12/13 at 100.00 AAA 3,994,950
1,450 Colorado Educational and Cultural Facilities Authority, Charter 8/14 at 100.00 A 1,483,379
School Revenue Bonds, Peak-to-Peak Charter School, Series 2004,
5.250%, 8/15/24 - XLCA Insured
3,750 Colorado Health Facilities Authority, Colorado, Revenue Bonds, 4/18 at 100.00 AAA 3,751,500
Catholic Health Initiatives, Series 2006C-1, Trust 1090,
11.524%, 10/01/41 - FSA Insured (IF)
3,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AAA 808,020
Series 2000B, 0.000%, 9/01/30 - MBIA Insured
2,900 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call AAA 611,262
Series 2004A, 0.000%, 9/01/34 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
19,150 Total Colorado 15,307,000
------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 0.2% (0.1% of Total Investments)
665 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 549,343
Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals
1606, 8.033%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
Florida - 1.3% (0.8% of Total Investments)
3,000 Pinellas County Health Facilities Authority, Florida, Revenue 5/13 at 100.00 Aa3(4) 3,338,520
Bonds, Baycare Health System, Series 2003, 5.500%, 11/15/27
(Pre-refunded 5/15/13)
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 2.1% (1.3% of Total Investments)
1,410 DeKalb County, Georgia, Water and Sewer Revenue Bonds, Series 10/16 at 100.00 AAA 1,448,944
2006A, 5.000%, 10/01/35 - FSA Insured
3,825 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales Tax 1/13 at 100.00 AAA 4,151,502
Revenue Bonds, Second Indenture Series 2002, 5.000%, 7/01/32
(Pre-refunded 1/01/13) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,235 Total Georgia 5,600,446
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 3.8% (2.4% of Total Investments)
905 Cook County School District 100, Berwyn South, Illinois, General 12/13 at 100.00 Aaa 1,005,889
Obligation Refunding Bonds, Series 2003B, 5.250%, 12/01/21
(Pre-refunded 12/01/13) - FSA Insured
Cook County School District 145, Arbor Park, Illinois, General
Obligation Bonds, Series 2004:
3,285 5.125%, 12/01/20 - FSA Insured 12/14 at 100.00 Aaa 3,473,822
2,940 5.125%, 12/01/23 - FSA Insured 12/14 at 100.00 Aaa 3,067,449
-----
69
-----
NEA | Nuveen Insured Tax-Free Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Illinois (continued)
$ 2,500 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/13 at 100.00 A- $ 2,530,825
Hospital, Series 2003, 5.250%, 7/01/23
------------------------------------------------------------------------------------------------------------------------------------
9,630 Total Illinois 10,077,985
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 9.9% (6.3% of Total Investments)
2,500 Evansville, Indiana, Sewerage Works Revenue Refunding Bonds, 7/13 at 100.00 AAA 2,577,850
Series 2003A, 5.000%, 7/01/23 - AMBAC Insured
2,190 Indiana Bond Bank, Advance Purchase Funding Bonds, Common School 8/13 at 100.00 AAA 2,267,614
Fund, Series 2003B, 5.000%, 8/01/19 - MBIA Insured
1,860 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 AAA 1,858,363
Series 2007A, 5.000%, 1/01/42 - MBIA Insured
1,000 Indiana University, Student Fee Revenue Bonds, Series 2003O, 8/13 at 100.00 Aa1 1,038,730
5.000%, 8/01/22 - FGIC Insured
IPS Multi-School Building Corporation, Indiana, First Mortgage
Revenue Bonds, Series 2003:
11,020 5.000%, 7/15/19 (Pre-refunded 7/15/13) - MBIA Insured 7/13 at 100.00 AAA 12,043,758
6,000 5.000%, 7/15/20 (Pre-refunded 7/15/13) - MBIA Insured 7/13 at 100.00 AAA 6,557,400
------------------------------------------------------------------------------------------------------------------------------------
24,570 Total Indiana 26,343,715
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 2.5% (1.6% of Total Investments)
6,250 Kansas Development Finance Authority, Board of Regents, Revenue 4/13 at 102.00 AAA 6,580,375
Bonds, Scientific Research and Development Facilities Projects,
Series 2003C, 5.000%, 10/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 0.4% (0.3% of Total Investments)
985 Kentucky State Property and Buildings Commission, Revenue 8/13 at 100.00 AAA 1,077,176
Refunding Bonds, Project 77, Series 2003, 5.000%, 8/01/23
(Pre-refunded 8/01/13) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 2.1% (1.4% of Total Investments)
5,785 New Orleans, Louisiana, General Obligation Refunding Bonds, 12/12 at 100.00 Baa3 5,652,466
Series 2002, 5.300%, 12/01/27 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 2.9% (1.8% of Total Investments)
6,000 Massachusetts Bay Transportation Authority, Senior Sales Tax 7/12 at 100.00 AAA 6,485,100
Revenue Refunding Bonds, Series 2002A, 5.000%, 7/01/27
(Pre-refunded 7/01/12) - FGIC Insured
1,125 Massachusetts Development Finance Authority, Revenue Bonds, 9/13 at 100.00 A1 1,152,596
Middlesex School, Series 2003, 5.125%, 9/01/23
------------------------------------------------------------------------------------------------------------------------------------
7,125 Total Massachusetts 7,637,696
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 11.8% (7.6% of Total Investments)
6,130 Detroit, Michigan, Senior Lien Water Supply System Revenue Bonds, 7/13 at 100.00 AAA 6,692,857
Series 2003A, 5.000%, 7/01/23 (Pre-refunded 7/01/13) - MBIA
Insured
4,465 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/13 at 100.00 AAA 4,601,986
Refunding Bonds, Series 2003C, 5.000%, 7/01/22 - MBIA Insured
1,000 Michigan State Hospital Finance Authority, Revenue Bonds, Trinity 12/16 at 100.00 AA 997,210
Health Care Group, Series 2006A, 5.000%, 12/01/31
10,800 Michigan Strategic Fund, Limited Obligation Resource Recovery 12/12 at 100.00 A- 10,214,856
Revenue Refunding Bonds, Detroit Edison Company, Series 2002D,
5.250%, 12/15/32 - XLCA Insured
2,250 Romulus Community Schools, Wayne County, Michigan, General 5/11 at 100.00 AA- 2,333,993
Obligation Refunding Bonds, Series 2001, 5.250%, 5/01/25
6,500 Wayne County, Michigan, Limited Tax General Obligation Airport 12/11 at 101.00 AAA 6,552,650
Hotel Revenue Bonds, Detroit Metropolitan Wayne County Airport,
Series 2001A, 5.000%, 12/01/30 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
31,145 Total Michigan 31,393,552
------------------------------------------------------------------------------------------------------------------------------------
-----
70
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 1.2% (0.7% of Total Investments)
$ 240 Clay County Public School District 53, Liberty, Missouri, General 3/14 at 100.00 AAA $ 252,794
Obligation Bonds, Series 2004, 5.250%, 3/01/24 - FSA Insured
215 Clay County Public School District 53, Liberty, Missouri, General 3/14 at 100.00 AAA 227,625
Obligation Bonds, Series 2004, 5.250%, 3/01/23 - FSA Insured
Clay County Public School District 53, Liberty, Missouri, General
Obligation Bonds, Series 2004:
1,110 5.250%, 3/01/23 (Pre-refunded 3/01/14) - FSA Insured 3/14 at 100.00 AAA 1,231,334
1,260 5.250%, 3/01/24 (Pre-refunded 3/01/14) - FSA Insured 3/14 at 100.00 AAA 1,397,731
------------------------------------------------------------------------------------------------------------------------------------
2,825 Total Missouri 3,109,484
------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 1.9% (1.2% of Total Investments)
5,000 Lincoln, Nebraska, Sanitary Sewerage System Revenue Refunding 6/13 at 100.00 AAA 5,106,150
Bonds, Series 2003, 5.000%, 6/15/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.8% (0.5% of Total Investments)
1,975 New Mexico State University, Revenue Bonds, Series 2004, 5.000%, 4/14 at 100.00 AAA 2,094,033
4/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
New York - 10.9% (7.0% of Total Investments)
20 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 Aaa 15,976
Driver Trust 1649, 2006, 6.799%, 2/15/47 - MBIA Insured (IF)
1,960 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 Aaa 1,828,504
Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
25,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 25,242,000
Revenue Refunding Bonds, Series 2002F, 5.000%, 11/15/31 - MBIA
Insured
1,850 New York State Urban Development Corporation, Service Contract 3/15 at 100.00 AAA 1,921,817
Revenue Bonds, Series 2005B, 5.000%, 3/15/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
28,830 Total New York 29,008,297
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 3.2% (2.1% of Total Investments)
8,700 North Carolina Medical Care Commission, Revenue Bonds, Maria 10/13 at 100.00 AA 8,539,920
Parham Medical Center, Series 2003, 5.375%, 10/01/33 - RAAI
Insured
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 1.0% (0.7% of Total Investments)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
70 5.125%, 6/01/24 6/17 at 100.00 BBB 65,935
710 5.875%, 6/01/30 6/17 at 100.00 BBB 660,655
685 5.750%, 6/01/34 6/17 at 100.00 BBB 619,233
1,570 5.875%, 6/01/47 6/17 at 100.00 BBB 1,389,324
------------------------------------------------------------------------------------------------------------------------------------
3,035 Total Ohio 2,735,147
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 0.4% (0.2% of Total Investments)
1,000 Oklahoma Capitol Improvement Authority, State Facilities Revenue 7/15 at 100.00 AAA 1,027,200
Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 3.1% (2.0% of Total Investments)
8,350 Oregon Health Sciences University, Revenue Bonds, Series 2002A, 1/13 at 100.00 AAA 8,366,617
5.000%, 7/01/32 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 7.6% (4.9% of Total Investments)
3,000 Lehigh County General Purpose Authority, Pennsylvania, Hospital 8/13 at 100.00 AAA 3,323,340
Revenue Bonds, St. Luke's Hospital of Bethlehem, Series 2003,
5.375%, 8/15/33 (Pre-refunded 8/15/13)
2,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 8/13 at 100.00 AAA 2,021,000
Ordinance, Fourth Series 1998, 5.000%, 8/01/32 - FSA Insured
-----
71
-----
NEA | Nuveen Insured Tax-Free Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2008 (Unaudited)
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania (continued)
$ 925 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, 6/08 at 102.00 AAA $ 943,722
Series 1997A, 5.125%, 8/01/27 - AMBAC Insured (ETM)
13,000 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 14,185,600
Revenue Bonds, Philadelphia School District, Series 2003,
5.000%, 6/01/33 (Pre-refunded 6/01/13) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
18,925 Total Pennsylvania 20,473,662
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 0.5% (0.3% of Total Investments)
10,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call AAA 1,397,900
Bonds, Series 2007A, 0.000%, 8/01/43 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 7.3% (4.7% of Total Investments)
5,000 Florence County, South Carolina, Hospital Revenue Bonds, McLeod 11/14 at 100.00 AAA 5,189,400
Regional Medical Center, Series 2004A, 5.250%, 11/01/23 - FSA
Insured
Greenville County School District, South Carolina, Installment
Purchase Revenue Bonds, Series 2003:
3,000 5.000%, 12/01/22 12/13 at 100.00 AA- 3,067,290
1,785 5.000%, 12/01/23 12/13 at 100.00 AA- 1,818,861
1,365 Myrtle Beach, South Carolina, Water and Sewerage System Revenue 3/13 at 100.00 Baa3(4) 1,507,602
Refunding Bonds, Series 2003, 5.375%, 3/01/19 (Pre-refunded
3/01/13) - FGIC Insured
8,000 South Carolina Transportation Infrastructure Bank, Revenue Bonds, 10/12 at 100.00 Aaa 8,040,560
Series 2002A, 5.000%, 10/01/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
19,150 Total South Carolina 19,623,713
------------------------------------------------------------------------------------------------------------------------------------
Texas - 13.4% (8.6% of Total Investments)
7,975 Fort Bend Independent School District, Fort Bend County, Texas, 8/10 at 100.00 AAA 8,118,630
General Obligation Bonds, Series 2000, 5.000%, 8/15/25
12,500 Grand Prairie Independent School District, Dallas County, Texas, 2/13 at 100.00 AAA 13,658,125
General Obligation Bonds, Series 2003, 5.125%, 2/15/31
(Pre-refunded 2/15/13) - FSA Insured
2,000 Houston, Texas, First Lien Combined Utility System Revenue Bonds, 5/14 at 100.00 AAA 2,077,460
Series 2004A, 5.250%, 5/15/25 - MBIA Insured
5,515 Houston, Texas, General Obligation Refunding Bonds, Series 2002, 3/12 at 100.00 AAA 5,760,583
5.250%, 3/01/20 - MBIA Insured
465 Katy Independent School District, Harris, Fort Bend and Waller 2/12 at 100.00 AAA 486,455
Counties, Texas, General Obligation Bonds, Series 2002A, 5.125%,
2/15/18
5,385 Katy Independent School District, Harris, Fort Bend and Waller 2/12 at 100.00 AAA 5,808,638
Counties, Texas, General Obligation Bonds, Series 2002A, 5.125%,
2/15/18 (Pre-refunded 2/15/12)
------------------------------------------------------------------------------------------------------------------------------------
33,840 Total Texas 35,909,891
------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.6% (0.4% of Total Investments)
1,500 Hampton, Virginia, Revenue Bonds, Convention Center Project, 1/13 at 100.00 AAA 1,519,590
Series 2002, 5.125%, 1/15/28 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
Washington - 9.2% (5.9% of Total Investments)
4,945 Broadway Office Properties, King County, Washington, Lease Revenue 12/12 at 100.00 AAA 5,017,593
Bonds, Washington Project, Series 2002, 5.000%, 12/01/31 - MBIA
Insured
5,250 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AAA 5,333,843
Consolidated System Revenue Bonds, Series 2002C, 5.125%, 7/01/33 -
AMBAC Insured
2,135 Kitsap County Consolidated Housing Authority, Washington, Revenue 7/13 at 100.00 Aaa 2,169,822
Bonds, Bremerton Government Center, Series 2003, 5.000%, 7/01/23 -
MBIA Insured
1,935 Pierce County School District 343, Dieringer, Washington, General 6/13 at 100.00 Aa1 2,072,637
Obligation Refunding Bonds, Series 2003, 5.250%, 12/01/17 - FGIC
Insured
9,670 Washington State, General Obligation Bonds, Series 2003D, 5.000%, 6/13 at 100.00 AAA 10,074,593
12/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
23,935 Total Washington 24,668,488
------------------------------------------------------------------------------------------------------------------------------------
-----
72
-----
Principal Optional Call
Amount (000) Description (1) Provisions (2) Ratings (3) Value
------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 1.2% (0.8% of Total Investments)
$ 3,000 West Virginia State Building Commission, Lease Revenue Refunding No Opt. Call AAA $ 3,288,240
Bonds, Regional Jail and Corrections Facility, Series 1998A,
5.375%, 7/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 6.7% (4.3% of Total Investments)
1,190 Sun Prairie Area School District, Dane County, Wisconsin, General 3/14 at 100.00 Aaa 1,297,243
Obligation Bonds, Series 2004C, 5.250%, 3/01/24 - FSA Insured
4,605 Wisconsin Health and Educational Facilities Authority, Revenue 9/13 at 100.00 BBB+(4) 5,205,124
Bonds, Franciscan Sisters of Christian Charity Healthcare
Ministry, Series 2003A, 5.875%, 9/01/33 (Pre-refunded 9/01/13)
3,000 Wisconsin Health and Educational Facilities Authority, Revenue No Opt. Call A1 3,376,050
Bonds, Meriter Hospital Inc., Series 1992A, 6.000%, 12/01/22 -
FGIC Insured
3,600 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A- 3,048,048
Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.125%,
8/15/33
4,750 Wisconsin Health and Educational Facilities Authority, Revenue 8/08 at 102.00 AAA 4,863,335
Refunding Bonds, Wausau Hospital Inc., Series 1998A, 5.125%,
8/15/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
17,145 Total Wisconsin 17,789,800
------------------------------------------------------------------------------------------------------------------------------------
$ 417,490 Total Investments (cost $404,151,934) - 156.0% 416,189,241
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.7)% (7,305,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.7% 1,923,504
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.0)% (5) (144,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 266,807,745
=====================================================================================================================
As of April 30, 2008, at least 80% of the Fund's net assets (including
net assets attributable to Preferred shares) are invested in municipal
securities that are either covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance which ensures the
timely payment of principal and interest. Up to 20% of the Fund's net
assets (including net assets attributable to Preferred shares) may be
invested in municipal securities that are (i) either backed by an escrow
or trust containing sufficient U.S. Government or U.S. Government agency
securities (also ensuring the timely payment of principal and interest),
or (ii) rated, at the time of investment, within the four highest grades
(Baa or BBB or better by Moody's, Standard & Poor's or Fitch) or unrated
but judged to be of comparable quality by the Adviser.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. Please
see the Portfolio Manager's Commentary for an expanded discussion of the
affect on the Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the underlying
insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of total
investments is (34.6)%.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
-----
73
-----
| Statement of
| ASSETS & LIABILITIES
April 30, 2008 (Unaudited)
Insured Insured
Insured Insured Premier Insured Dividend Tax-Free
Quality Opportunity Insured Income Premium Income 2 Advantage Advantage
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
-----------------------------------------------------------------------------------------------------------------------------------
Assets
Investments, at value (cost
$902,795,390, $1,872,430,928,
$439,496,220, $816,031,531,
$674,970,271 and $404,151,934,
respectively) $ 913,124,801 $ 1,923,926,313 $ 450,384,514 $ 824,678,701 $ 696,625,735 $ 416,189,241
Cash 5,866,174 13,262,600 2,964,544 4,740,187 4,462,926 540,016
Receivables:
Dividends and Interest 12,269,913 28,953,601 7,053,305 13,960,990 9,776,919 6,433,983
Investments sold -- -- 170,000 15,095 -- --
Other assets 76,556 207,028 41,610 83,830 35,349 35,642
-----------------------------------------------------------------------------------------------------------------------------------
Total assets 931,337,444 1,966,349,542 460,613,973 843,478,803 710,900,929 423,198,882
-----------------------------------------------------------------------------------------------------------------------------------
Liabilities
Floating rate obligations 67,386,650 101,853,333 17,315,000 77,080,000 34,933,334 7,305,000
Payable for investments purchased -- -- 2,503,833 -- -- 3,755,750
Accrued expenses:
Management fees 431,136 911,651 223,906 383,776 229,173 128,724
Other 225,001 473,063 114,530 123,851 143,500 87,903
Common share dividends payable 1,943,386 4,028,681 892,374 1,702,740 1,653,120 1,058,156
Preferred share dividends payable 116,497 298,204 76,109 99,449 69,047 55,604
-----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 70,102,670 107,564,932 21,125,752 79,389,816 37,028,174 12,391,137
-----------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation
value 318,000,000 680,000,000 161,000,000 268,900,000 233,000,000 144,000,000
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares $ 543,234,774 $ 1,178,784,610 $ 278,488,221 $ 495,188,987 $ 440,872,755 $ 266,807,745
===================================================================================================================================
Common shares outstanding 38,295,278 81,138,036 19,419,608 37,353,512 29,813,300 18,525,698
===================================================================================================================================
Net asset value per Common share
outstanding (net assets
applicable to Common shares,
divided by Common shares
outstanding) $ 14.19 $ 14.53 $ 14.34 $ 13.26 $ 14.79 $ 14.40
===================================================================================================================================
Net assets applicable to Common
shares consist of:
-----------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value
per share $ 382,953 $ 811,380 $ 194,196 $ 373,535 $ 298,133 $ 185,257
Paid-in surplus 534,535,198 1,128,874,275 269,465,714 491,941,462 423,568,038 261,680,633
Undistributed (Over-distribution
of) net investment income (322,583) (279,726) (509,420) (1,303,000) (747,456) (627,872)
Accumulated net realized gain
(loss) from investments
and derivative transactions (1,690,205) (2,116,704) (1,550,563) (4,470,180) (3,901,424) (6,467,580)
Net unrealized appreciation
(depreciation) of investments
and derivative transactions 10,329,411 51,495,385 10,888,294 8,647,170 21,655,464 12,037,307
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares $ 543,234,774 $ 1,178,784,610 $ 278,488,221 $ 495,188,987 $ 440,872,755 $ 266,807,745
===================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 Unlimited Unlimited Unlimited
Preferred 1,000,000 1,000,000 1,000,000 Unlimited Unlimited Unlimited
===================================================================================================================================
See accompanying notes to financial statements.
-----
74
-----
| Statement of
| OPERATIONS
Six Months Ended April 30, 2008 (Unaudited)
Insured Insured
Insured Insured Premier Insured Dividend Tax-Free
Quality Opportunity Insured Income Premium Income 2 Advantage Advantage
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
-----------------------------------------------------------------------------------------------------------------------------------
Investment Income $ 23,256,852 $ 47,976,847 $ 11,222,346 $ 20,503,941 $ 17,055,166 $ 9,867,223
-----------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees 2,651,973 5,587,348 1,374,748 2,351,445 2,074,161 1,279,561
Preferred shares - auction fees 395,328 845,355 200,151 334,289 289,658 179,017
Preferred shares - dividend
disbursing agent fees 24,790 34,804 14,879 24,838 14,877 9,954
Shareholders' servicing agent fees
and expenses 35,646 57,407 14,360 20,707 3,558 1,949
Interest expense on floating
rate obligations 834,119 1,267,295 207,058 1,254,647 384,559 25,183
Custodian's fees and expenses 77,400 144,914 40,304 64,349 65,093 29,166
Directors'/Trustees' fees and
expenses 8,822 17,873 4,267 7,675 6,430 3,685
Professional fees 25,270 47,004 15,307 15,113 19,823 13,847
Shareholders' reports - printing
and mailing expenses 45,466 97,503 24,921 46,486 37,431 22,537
Stock exchange listing fees 6,644 14,061 4,658 6,473 1,818 1,129
Investor relations expense 54,116 114,256 27,974 48,494 41,637 25,070
Portfolio insurance expense -- 7,207 -- -- -- --
Other expenses 22,974 35,550 16,764 15,657 13,246 10,449
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian
fee credit and expense
reimbursement 4,182,548 8,270,577 1,945,391 4,190,173 2,952,291 1,601,547
Custodian fee credit (45,959) (86,681) (41,028) (53,093) (60,988) (10,172)
Expense reimbursement -- -- -- -- (817,139) (521,290)
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 4,136,589 8,183,896 1,904,363 4,137,080 2,074,164 1,070,085
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income 19,120,263 39,792,951 9,317,983 16,366,861 14,981,002 8,797,138
-----------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain
(Loss)
Net realized gain (loss) from:
Investments (958,619) (2,112,458) (948,301) (4,179,470) (751,103) 311,689
Forward swaps -- -- -- 5,200 -- --
Change in net unrealized
appreciation (depreciation) of:
Investments (25,270,916) (38,449,526) (10,243,788) (13,524,182) (8,844,977) (5,809,757)
Forward swaps -- -- -- (165,919) -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) (26,229,535) (40,561,984) (11,192,089) (17,864,371) (9,596,080) (5,498,068)
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to Preferred
Shareholders
From net investment income (5,712,941) (12,291,491) (2,862,526) (4,792,076) (4,208,663) (2,359,823)
From accumulated net realized
gains -- (61,352) -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to Preferred
shareholders (5,712,941) (12,352,843) (2,862,526) (4,792,076) (4,208,663) (2,359,823)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from operations $ (12,822,213) $ (13,121,876) $ (4,736,632) $ (6,289,586) $ 1,176,259 $ 939,247
===================================================================================================================================
See accompanying notes to financial statements.
-----
75
-----
| Statement of
| CHANGES in NET ASSETS (Unaudited)
Insured Quality (NQI) Insured Opportunity (NIO)
------------------------------- ----------------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
4/30/08 10/31/07 4/30/08 10/31/07
-----------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 19,120,263 $ 37,781,613 $ 39,792,951 $ 79,137,275
Net realized gain (loss) from:
Investments (958,619) 402,678 (2,112,458) 213,800
Forward swaps -- -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments (25,270,916) (19,111,081) (38,449,526) (36,626,210)
Forward swaps -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (5,712,941) (11,240,731) (12,291,491) (23,971,401)
From accumulated net realized gains -- -- (61,352) (491,009)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations (12,822,213) 7,832,479 (13,121,876) 18,262,455
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to Common Shareholders
From net investment income (13,901,189) (27,802,379) (28,236,036) (59,595,899)
From accumulated net realized gains -- -- (154,162) (1,541,606)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Common shareholders (13,901,189) (27,802,379) (28,390,198) (61,137,505)
-----------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions
Net proceeds from Common shares issued to shareholders due to
reinvestment of distributions -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares (26,723,402) (19,969,900) (41,512,074) (42,875,050)
Net assets applicable to Common shares at the beginning of
period 569,958,176 589,928,076 1,220,296,684 1,263,171,734
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $ 543,234,774 $ 569,958,176 $ 1,178,784,610 $ 1,220,296,684
===================================================================================================================================
Undistributed (Over-distribution of) net investment income at
the end of period $ (322,583) $ 171,284 $ (279,726) $ 454,850
===================================================================================================================================
See accompanying notes to financial statements.
-----
76
-----
Premier Insured Insured Premium
Income (NIF) Income 2 (NPX)
------------------------------- ----------------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
4/30/08 10/31/07 4/30/08 10/31/07
-----------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 9,317,983 $ 18,776,763 $ 16,366,861 $ 32,219,139
Net realized gain (loss) from:
Investments (948,301) (437,572) (4,179,470) 670,365
Forward swaps -- -- 5,200 --
Change in net unrealized appreciation (depreciation) of:
Investments (10,243,788) (8,470,828) (13,524,182) (15,396,052)
Forward swaps -- -- (165,919) 165,919
Distributions to Preferred Shareholders:
From net investment income (2,862,526) (5,720,025) (4,792,076) (9,604,218)
From accumulated net realized gains -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations (4,736,632) 4,148,338 (6,289,586) 8,055,153
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to Common Shareholders
From net investment income (6,175,437) (13,749,084) (11,542,236) (24,018,307)
From accumulated net realized gains -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Common shareholders (6,175,437) (13,749,084) (11,542,236) (24,018,307)
-----------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions
Net proceeds from Common shares issued to shareholders due to
reinvestment of distributions -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares (10,912,069) (9,600,746) (17,831,822) (15,963,154)
Net assets applicable to Common shares at the beginning of
period 289,400,290 299,001,036 513,020,809 528,983,963
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $ 278,488,221 $ 289,400,290 $ 495,188,987 $ 513,020,809
===================================================================================================================================
Undistributed (Over-distribution of) net investment income at
the end of period $ (509,420) $ (789,440) $ (1,303,000) $ (1,335,549)
===================================================================================================================================
See accompanying notes to financial statements.
-----
77
-----
| Statement of
| CHANGES in NET ASSETS (continued) (Unaudited)
Insured Dividend Insured Tax-Free
Advantage (NVG) Advantage (NEA)
------------------------------- ----------------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
4/30/08 10/31/07 4/30/08 10/31/07
-----------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 14,981,002 $ 29,786,960 $ 8,797,138 $ 17,879,592
Net realized gain (loss) from:
Investments (751,103) 1,658,186 311,689 683,061
Forward swaps -- -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments (8,844,977) (12,888,832) (5,809,757) (4,723,249)
Forward swaps -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (4,208,663) (8,411,541) (2,359,823) (4,960,330)
From accumulated net realized gains -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations 1,176,259 10,144,773 939,247 8,879,074
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to Common Shareholders
From net investment income (10,285,588) (22,283,514) (6,557,591) (13,111,078)
From accumulated net realized gains -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Common shareholders (10,285,588) (22,283,514) (6,557,591) (13,111,078)
-----------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions
Net proceeds from Common shares issued to shareholders due to
reinvestment of distributions -- 84,005 34,771 117,345
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions -- 84,005 34,771 117,345
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares (9,109,329) (12,054,736) (5,583,573) (4,114,659)
Net assets applicable to Common shares at the beginning of
period 449,982,084 462,036,820 272,391,318 276,505,977
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $ 440,872,755 $ 449,982,084 $ 266,807,745 $ 272,391,318
===================================================================================================================================
Undistributed (Over-distribution of) net investment income at
the end of period $ (747,456) $ (1,234,207) $ (627,872) $ (507,596)
===================================================================================================================================
See accompanying notes to financial statements.
-----
78
-----
| Statement of
| CASH FLOWS
Six Months Ended April 30, 2008 (Unaudited)
Insured Insured
Quality Premium Income 2
(NQI) (NPX)
------------------------------------------------------------------------------------------------------------------------------------
Cash Flows from Operating Activities:
Net Increase (Decrease) in Net Assets Applicable to Common shares from Operations $ (12,822,213) $ (6,289,586)
Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares
from operations to net cash
provided by (used in) operating activities:
Purchases of investments (34,198,240) (37,573,275)
Proceeds from sales of investments 52,372,489 75,678,518
Proceeds from (Purchases of) short-term investments, net (6,320,000) (8,415,000)
Cash settlement of forward swaps -- 5,200
Amortization / (Accretion) of premiums and discounts, net (943,025) 253,743
(Increase) Decrease in receivable for dividends and interest 25,672 (111,630)
(Increase) Decrease in receivable for investments sold 3,970,000 35,032
(Increase) Decrease in other assets 23,969 (5,035)
Increase (Decrease) in accrued management fees (28,017) (21,816)
Increase (Decrease) in accrued other liabilities (36,066) (195,505)
Increase (Decrease) in Preferred shares dividends payable 3,264 6,731
Net realized (gain) loss from investments 958,619 4,179,470
Net realized (gain) loss from forward swaps -- (5,200)
Change in net unrealized (appreciation) depreciation of investments 25,270,916 13,524,182
Change in net unrealized (appreciation) depreciation of forward swaps -- 165,919
------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 28,277,368 41,231,748
------------------------------------------------------------------------------------------------------------------------------------
Cash Flows from Financing Activities:
Increase (Decrease) in floating rate obligations (8,200,000) (25,240,000)
Increase (Decrease) in cash overdraft balances (326,001) --
Cash distributions paid to Common shareholders (13,885,193) (11,540,049)
------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (22,411,194) (36,780,049)
------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Cash 5,866,174 4,451,699
Cash at the beginning of period -- 288,488
------------------------------------------------------------------------------------------------------------------------------------
Cash at the End of Period $ 5,866,174 $ 4,740,187
====================================================================================================================================
Supplemental Disclosure of Cash Flow Information
Cash paid for interest on floating rate obligations was $834,119 and $1,254,647
for Insured Quality (NQI) and Insured Premium Income 2 (NPX), respectively.
See accompanying notes to financial statements.
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| Notes to
| FINANCIAL STATEMENTS (Unaudited)
1. General Information and Significant Accounting Policies
The funds covered in this report and their corresponding Common share 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 2 (NPX),
Nuveen Insured Dividend Advantage Municipal Fund (NVG) and Nuveen Insured
Tax-Free Advantage Municipal Fund (NEA) (collectively, the "Funds"). Common
shares of Insured Quality (NQI), Insured Opportunity (NIO), Premier Insured
Income (NIF) and Insured Premium Income 2 (NPX) are traded on the New York Stock
Exchange while Common shares of Insured Dividend Advantage (NVG) and Insured
Tax-Free Advantage (NEA) are traded on the American Stock Exchange. The Funds
are registered under the Investment Company Act of 1940, as amended, as
closed-end, diversified management investment companies.
Each Fund seeks to provide current income exempt from regular federal income
tax, and in the case of Insured Tax-Free Advantage (NEA) the alternative minimum
tax applicable to individuals, by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities or
certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
market price quotes are not readily available (which is usually the case for
municipal securities), the pricing service may establish fair value based on
yields or prices of municipal bonds of comparable quality, type of issue,
coupon, maturity and rating, indications of value from securities dealers,
evaluations of anticipated cash flows or collateral and general market
conditions. Prices of forward swap contracts are also provided by an independent
pricing service approved by each Fund's Board of Directors/Trustees. If the
pricing service is unable to supply a price for a municipal bond or forward swap
contract, each Fund may use market quotes provided by major broker/dealers in
such investments. If it is determined that the market price for an investment or
derivative instrument is unavailable or inappropriate, the Board of
Directors/Trustees of the Funds, or its designee, may establish fair value in
accordance with procedures established 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 investments are valued at
amortized cost, which approximates market value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At April 30, 2008, there were
no such outstanding purchase commitments in any of the Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Interest income also includes paydown gains and losses, if any. Dividend income,
if any, is recorded on the ex-dividend date.
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its net investment income and net
capital gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from
-----
80
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regular federal and applicable state income taxes, if any, and in the case of
Insured Tax-Free Advantage (NEA) the alternative minimum tax applicable to
individuals, to retain such tax-exempt status when distributed to shareholders
of the Funds. Net realized capital gains and ordinary income distributions paid
by the Funds are subject to federal taxation.
Effective April 30, 2008, the Funds adopted Financial Accounting Standards Board
(FASB) Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN
48). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the affirmative evaluation of tax positions taken or expected to be
taken in the course of preparing the Funds' tax returns to determine whether it
is "more-likely-than-not" (i.e., a greater than 50-percent likelihood) of being
sustained by the applicable tax authority. Tax positions not deemed to meet the
more-likely-than-not threshold may result in a tax benefit or expense in the
current year.
Implementation of FIN 48 required management of the Funds to analyze all open
tax years, as defined by the statute of limitations, for all major
jurisdictions, which includes federal and certain states. Open tax years are
those that are open for examination by taxing authorities (i.e., generally the
last four tax year ends and the interim tax period since then). The Funds have
no examinations in progress.
For all open tax years and all major taxing jurisdictions through the end of the
reporting period, management of the Funds has reviewed all tax positions taken
or expected to be taken in the preparation of the Funds' tax returns and
concluded the adoption of FIN 48 resulted in no impact to the Funds' net assets
or results of operations as of and during the six months ended April 30, 2008.
The Funds are also not aware of any tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will significantly
change in the next twelve months.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders at least annually. Furthermore, capital
gains are distributed only to the extent they exceed available capital loss
carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in more than one Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
The number of Preferred shares outstanding, by Series and in total, for each
Fund is as follows:
Premier Insured Insured Insured
Insured Insured Insured Premium Dividend Tax-Free
Quality Opportunity Income Income 2 Advantage Advantage
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
--------------------------------------------------------------------------------------------
Number of shares:
Series M 2,600 4,000 -- 2,080 3,160 --
Series T 2,600 4,000 -- 2,200 3,080 2,880
Series W 2,600 4,000 840 2,080 -- 2,880
Series W2 -- 3,200 -- -- -- --
Series TH 2,320 4,000 2,800 2,200 3,080 --
Series TH2 -- 4,000 -- -- -- --
Series F 2,600 4,000 2,800 2,196 -- --
--------------------------------------------------------------------------------------------
Total 12,720 27,200 6,440 10,756 9,320 5,760
============================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Preferred shares issued by the Funds than there were
offers to buy. This meant that these auctions "failed to clear," and that many
Preferred shareholders who wanted to sell their shares in these auctions were
unable to do so. Preferred shareholders unable to sell their shares received
distributions at the "maximum rate" applicable to failed auctions as calculated
in accordance with the pre-established terms of the Preferred shares.
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| Notes to
| FINANCIAL STATEMENTS (continued) (Unaudited)
These developments generally do not affect the management or investment policies
of the Funds. However, one implication of these auction failures for Common
shareholders is that the Funds' cost of leverage will likely be higher, at least
temporarily, than it otherwise would have been had the auctions continued to be
successful. As a result, the Funds' future Common share earnings may be lower
than they otherwise would have been.
Insurance
During the six months ended April 30, 2008, Insured Quality (NQI), Insured
Opportunity (NIO), Premier Insured Income (NIF) and Insured Premium Income 2
(NPX) invested primarily 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.
During the six months ended April 30, 2008, Insured Dividend Advantage (NVG) and
Insured Tax-Free Advantage (NEA) primarily invested at least 80% of their net
assets (including net assets attributable to Preferred shares) in municipal
securities that were covered by insurance. Each Fund may have also invested up
to 20% of its net assets (including net assets attributable to Preferred shares)
in municipal securities which are either (i) backed by an escrow or trust
containing sufficient U.S. Government or U.S. Government agency securities, or
(ii) rated, at the time of investment, within the four highest grades (Baa or
BBB or better by Moody's, Standard & Poor's or unrated but judged to be of
comparable quality by Nuveen Asset Management ("the Adviser"), a wholly owned
subsidiary of Nuveen Investments, Inc. ("Nuveen").
On March 20, 2008, the Funds' Board of Directors/Trustees authorized the
adoption of certain changes to each Fund's investment policies. Such changes
mandate that under normal circumstances, each Fund must invest at least 80% of
its net assets (including net assets attributable to Preferred shares) in
municipal securities which are either covered by insurance or 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. For purposes of this 80% test, insurers must have a claims paying
ability rated at least "A" at the time of purchase. In addition, each Fund must
invest at least 80% of its net assets (including net assets attributable to
Preferred shares) in municipal securities that are rated at least "AA" at the
time of purchase. Each Fund may also invest up to 20% of its net assets
(including net assets attributable to Preferred shares) in municipal securities
rated below "AA" (based on the higher rating of the insurer, if any, or the
underlying bond) or are unrated but judged to be of comparable quality by the
Adviser.
Effective March 20, 2008, the foregoing policy changes were implemented in
Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA).
Effective March 20, 2008, Insured Quality (NQI), Insured Opportunity (NIO) and
Premier Insured Income (NIF) may invest in insured municipal bonds with an
insurer rated at least "A" at the time of purchase. The remaining foregoing
changes will be implemented pending shareholder approval.
The foregoing policy changes will be implemented in Insured Premium Income 2
(NPX) pending shareholder approval.
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' Common 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, in contrast, 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 Common share net
asset value of the Funds 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.
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Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An
inverse floating rate security is created by depositing a municipal bond,
typically with a fixed interest rate, into a special purpose trust created by a
broker-dealer. In turn, this trust (a) issues floating rate certificates, in
face amounts equal to some fraction of the deposited bond's par amount or market
value, that typically pay short-term tax-exempt interest rates to third parties,
and (b) issues to a long-term investor (such as one of the Funds) an inverse
floating rate certificate (sometimes referred to as an "inverse floater") that
represents all remaining or residual interest in the trust. The income received
by the inverse floater holder varies inversely with the short-term rate paid to
the floating rate certificates' holders, and in most circumstances the inverse
floater holder bears substantially all of the underlying bond's downside
investment risk and also benefits disproportionately from any potential
appreciation of the underlying bond's value. The price of an inverse floating
rate security will be more volatile than that of the underlying bond because the
interest rate is dependent on not only the fixed coupon rate of the underlying
bond but also on the short-term interest paid on the floating rate certificates,
and because the inverse floating rate security essentially bears the risk of
loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). A Fund may also enter into shortfall and
forbearance agreements (sometimes referred to as a "recourse trust" or "credit
recovery swap") with a broker-dealer by which a Fund agrees to reimburse the
broker-dealer, in certain circumstances, for the difference between the
liquidation value of the fixed-rate bond held by the trust and the liquidation
value of the floating rate certificates, as well as any shortfalls in interest
cash flows. The inverse floater held by a Fund gives the Fund the right (a) to
cause the holders of the floating rate certificates to tender their notes at
par, and (b) to have the broker transfer the fixed-rate bond held by the trust
to the Fund, thereby collapsing the trust. An investment in an
externally-deposited inverse floater is identified in the Portfolio of
Investments as an "Inverse floating rate investment". An investment in a
self-deposited inverse floater, recourse trust or credit recovery swap is
accounted for as a financing transaction in accordance with Statement of
Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities". In such
instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as an "Underlying bond of an inverse
floating rate trust", with the Fund accounting for the short-term floating rate
certificates issued by the trust as "Floating rate obligations" on the Statement
of Assets and Liabilities. In addition, the Fund reflects in Investment Income
the entire earnings of the underlying bond and accounts for the related interest
paid to the holders of the short-term floating rate certificates as "Interest
expense on floating rate obligations" in the Statement of Operations.
During the six months ended April 30, 2008, each Fund invested in externally
deposited inverse floaters and/or self-deposited inverse floaters.
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended April 30, 2008, were as follows:
Premier Insured Insured Insured
Insured Insured Insured Premium Dividend Tax-Free
Quality Opportunity Income Income 2 Advantage Advantage
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
-------------------------------------------------------------------------------------------------------------------------------
Average floating rate obligations $57,368,931 $87,314,872 $14,268,846 $85,262,158 $26,859,296 $1,766,538
Average annual interest rate and fees 2.92% 2.92% 2.92% 2.96% 2.88% 2.87%
===============================================================================================================================
Forward Swap Transactions
Each Fund is authorized to invest in forward interest rate swap transactions.
Each Fund's use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To reduce such credit
risk, all counterparties are required to pledge collateral daily (based on the
daily valuation of
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| Notes to
| FINANCIAL STATEMENTS (continued) (Unaudited)
each swap) on behalf of each Fund with a value approximately equal to the amount
of any unrealized gain above a pre-determined threshold. Reciprocally, when any
of the Funds have an unrealized loss on a swap contract, the Funds have
instructed the custodian to pledge assets of the Funds as collateral with a
value approximately equal to the amount of the unrealized loss above a
pre-determined threshold. Collateral pledges are monitored and subsequently
adjusted if and when the swap valuations fluctuate, either up or down, by at
least the predetermined threshold amount. Insured Premium Income 2 (NPX) was the
only Fund to invest in forward interest rate swap transactions during the six
months ended April 30, 2008.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. Fund Shares
Transactions in Common shares were as follows:
Insured Insured Premier Insured
Quality (NQI) Opportunity (NIO) Income (NIF)
---------------------- ----------------------- -----------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
4/30/08 10/31/07 4/30/08 10/31/07 4/30/08 10/31/07
----------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of
distributions -- -- -- -- -- --
================================================================================================================
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Insured Insured Insured
Premium Income 2 (NPX) Dividend Advantage (NVG) Tax-Free Advantage (NEA)
---------------------------- ------------------------- --------------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
4/30/08 10/31/07 4/30/08 10/31/07 4/30/08 10/31/07
-----------------------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions -- -- -- 5,478 2,433 7,983
===================================================================================================================================
3. Investment Transactions
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended April 30, 2008, were as
follows:
Premier Insured Insured Insured
Insured Insured Insured Premium Dividend Tax-Free
Quality Opportunity Income Income 2 Advantage Advantage
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
-----------------------------------------------------------------------------------------------------------------------------------
Purchases $34,198,240 $ 77,072,223 $16,053,254 $37,573,275 $28,119,137 $13,962,680
Sales and maturities 52,372,489 106,744,715 16,446,743 75,678,518 32,969,310 10,930,910
===================================================================================================================================
4. Income Tax Information
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
transactions subject to SFAS No. 140. To the extent that differences arise that
are permanent in nature, such amounts are reclassified within the capital
accounts on the Statement of Assets and Liabilities presented in the annual
report, based on their federal tax basis treatment; temporary differences do not
require reclassification. Temporary and permanent differences do not impact the
net asset values of the Funds.
At April 30, 2008, the cost of investments was as follows:
Premier Insured Insured Insured
Insured Insured Insured Premium Dividend Tax-Free
Quality Opportunity Income Income 2 Advantage Advantage
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
-----------------------------------------------------------------------------------------------------------------------------------
Cost of investments $834,819,278 $1,768,565,896 $422,088,637 $739,036,965 $639,847,305 $396,790,589
===================================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 2008, were as follows:
Premier Insured Insured Insured
Insured Insured Insured Premium Dividend Tax-Free
Quality Opportunity Income Income 2 Advantage Advantage
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
-----------------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 27,610,836 $ 77,896,401 $16,853,781 $ 20,950,147 $28,878,384 $15,358,203
Depreciation (16,697,418) (24,393,769) (5,874,714) (12,236,562) (7,035,132) (3,264,761)
-----------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $ 10,913,418 $ 53,502,632 $10,979,067 $ 8,713,585 $21,843,252 $12,093,442
===================================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at October 31, 2007, the Funds' last tax year
end, were as follows:
Premier Insured Insured Insured
Insured Insured Insured Premium Dividend Tax-Free
Quality Opportunity Income Income 2 Advantage Advantage
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
-----------------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $2,071,769 $3,582,375 $232,517 $627,351 $364,579 $585,550
Undistributed net ordinary income ** -- -- -- -- -- --
Undistributed net long-term capital
gains -- 211,268 -- -- -- --
===================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 1, 2007, paid on November 1, 2007.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
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| Notes to
| FINANCIAL STATEMENTS (continued) (Unaudited)
The tax character of distributions paid during the Funds' last tax year ended
October 31, 2007, was designated for purposes of the dividends paid deduction as
follows:
Premier Insured Insured Insured
Insured Insured Insured Premium Dividend Tax-Free
Quality Opportunity Income Income 2 Advantage Advantage
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
-----------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $39,047,625 $83,864,627 $19,606,912 $33,728,035 $30,917,881 $18,104,469
Distributions from net ordinary income** -- -- -- -- -- --
Distributions from net long-term capital gains -- 2,032,615 -- -- -- --
===================================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At October 31, 2007, the Funds' last tax year end, the following Funds had
unused capital loss carryforwards available for federal income tax purposes to
be applied against future capital gains, if any. If not applied, the
carryforwards will expire as follows:
Premium Insured Insured Insured
Insured Insured Premium Dividend Tax-Free
Quality Income Income 2 Advantage Advantage
(NQI) (NIF) (NPX) (NVG) (NEA)
-----------------------------------------------------------------------------------------------------------------------------------
Expiration:
October 31, 2008 $ -- $ -- $295,910 $ -- $ --
October 31, 2009 -- -- -- -- --
October 31, 2010 -- -- -- -- --
October 31, 2011 -- -- -- -- --
October 31, 2012 -- -- -- -- --
October 31, 2013 -- -- -- 160,392 4,675,683
October 31, 2014 731,586 164,691 -- 1,187,192 --
October 31, 2015 -- 437,571 -- -- 35,274
-----------------------------------------------------------------------------------------------------------------------------------
Total $731,586 $602,262 $295,910 $1,347,584 $4,710,957
===================================================================================================================================
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5. Management Fees and Other Transactions with Affiliates
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual Fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
Insured Quality (NQI)
Insured Opportunity (NIO)
Premier Insured Income (NIF)
Insured Premium Income 2 (NPX)
Average Daily Net Assets (including net assets attributable to Preferred shares) Fund-Level Fee Rate
--------------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
====================================================================================================================
Insured Dividend Advantage (NVG)
Insured Tax-Free Advantage (NEA)
Average Daily Net Assets (including net assets attributable to Preferred shares) Fund-Level Fee Rate
--------------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
====================================================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of April 30, 2008, the complex-level fee rate was .1855%.
The complex-level fee schedule is as follows:
Complex-Level Asset Breakpoint Level (1) Effective Rate at Breakpoint Level
--------------------------------------------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
====================================================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
preferred stock issued by or borrowings by the Nuveen funds) of
Nuveen-sponsored funds in the U.S.
-----
87
-----
| Notes to
| FINANCIAL STATEMENTS (continued) (Unaudited)
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to its Officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
funds.
For the first ten years of Insured Dividend Advantage's (NVG) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
Year Ending Year Ending
March 31, March 31,
--------------------------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured Dividend Advantage (NVG) for any
portion of its fees and expenses beyond March 31, 2012.
For the first eight years of Insured Tax-Free Advantage's (NEA) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
Year Ending Year Ending
November 30, November 30,
--------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured Tax-Free Advantage (NEA) for any
portion of its fees and expenses beyond November 30, 2010.
-----
88
-----
6. New Accounting Pronouncements
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 157
In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements." This
standard establishes a single authoritative definition of fair value, sets out a
framework for measuring fair value and requires additional disclosures about
fair value measurements. SFAS No. 157 applies to fair value measurements already
required or permitted by existing standards. SFAS No. 157 is effective for
financial statements issued for fiscal years beginning after November 15, 2007,
and interim periods within those fiscal years. The changes to current generally
accepted accounting principles from the application of this standard relate to
the definition of fair value, the methods used to measure fair value, and the
expanded disclosures about fair value measurements. As of April 30, 2008,
management does not believe the adoption of SFAS No. 157 will impact the
financial statement amounts; however, additional disclosures may be required
about the inputs used to develop the measurements and the effect of certain of
the measurements included within the Statement of Operations for the period.
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 161
In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative
Instruments and Hedging Activities." This standard is intended to enhance
financial statement disclosures for derivative instruments and hedging
activities and enable investors to understand: a) how and why a fund uses
derivative instruments, b) how derivative instruments and related hedge items
are accounted for, and c) how derivative instruments and related hedge items
affect a fund's financial position, results of operations and cash flows. SFAS
No. 161 is effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008. As of April 30, 2008,
management does not believe the adoption of SFAS No. 161 will impact the
financial statement amounts; however, additional footnote disclosures may be
required about the use of derivative instruments and hedging items.
7. Subsequent Events
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 2, 2008, to shareholders of record on
May 15, 2008, as follows:
Premier Insured Insured Insured
Insured Insured Insured Premium Dividend Tax-Free
Quality Opportunity Income Income 2 Advantage Advantage
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
----------------------------------------------------------------------------------------------------
Dividend per share $.0605 $.0580 $.0530 $.0515 $.0575 $.0590
====================================================================================================
Auction Rate Preferred Shares (ARPS)
On June 11, 2008, Nuveen announced the Fund Board's approval of plans to use
tender option bonds (TOBs), also known as inverse floating rate securities or
inverse floaters, to refinance a portion of the funds' outstanding ARPS, whose
auctions have been failing for several months, including an initial phase of
approximately $1 billion in forty-one funds. Of this amount, Nuveen expects that
approximately $560 million in ARPS redemption notices will be issued shortly for
thirteen funds, including Insured Opportunity (NIO).
Recent Credit Market Events
Subsequent to April 30, 2008, and at the time this report was prepared, at least
one rating agency further reduced the rating for CIFG-insured bonds to BB and
MBIA-insured bonds to A.
-----
89
-----
| Financial
| HIGHLIGHTS(Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations
------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
---------------------------------------------------------------------------------------------------------------
Insured Quality (NQI)
---------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $ 14.88 $ .50 $ (.68) $ (.15) $ -- $ (.33)
2007 15.40 .99 (.49) (.29) -- .21
2006 15.31 .99 .24 (.25) (.01) .97
2005 15.85 1.03 (.39) (.16) -- .48
2004 15.72 1.08 .20 (.08) -- 1.20
2003 15.87 1.10 (.05) (.07) (.01) .97
Insured Opportunity (NIO)
---------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 15.04 .49 (.50) (.15) --* (.16)
2007 15.57 .98 (.45) (.30) (.01) .22
2006 15.46 .98 .34 (.24) (.03) 1.05
2005 16.06 1.01 (.50) (.16) -- .35
2004 15.89 1.05 .20 (.08) -- 1.17
2003 15.83 1.06 .17 (.07) (.01) 1.15
===============================================================================================================
Less Distributions
--------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
-------------------------------------------------------------------------------------------------------
Insured Quality (NQI)
-------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $ (.36) $ -- $ (.36) $ -- $ 14.19 $ 13.40
2007 (.73) -- (.73) -- 14.88 13.61
2006 (.80) (.08) (.88) -- 15.40 14.83
2005 (.97) (.05) (1.02) -- 15.31 15.31
2004 (1.02) (.05) (1.07) -- 15.85 16.00
2003 (1.00) (.12) (1.12) -- 15.72 16.39
Insured Opportunity (NIO)
-------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) (.35) --** (.35) -- 14.53 13.60
2007 (.73) (.02) (.75) -- 15.04 13.56
2006 (.80) (.14) (.94) -- 15.57 14.75
2005 (.92) (.03) (.95) -- 15.46 14.52
2004 (.97) (.03) (1.00) -- 16.06 16.05
2003 (.97) (.12) (1.09) -- 15.89 15.64
=======================================================================================================
Total Returns
--------------------------
Based
on
Based Common
on Share Net
Market Asset
Value*** Value***
-------------------------------------------------------------------------------------
Insured Quality (NQI)
-------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 1.10% (2.19)%
2007 (3.48) 1.38
2006 2.76 6.53*****
2005 2.11 3.09
2004 4.37 7.90
2003 12.92 6.27
Insured Opportunity (NIO)
-------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 2.93 (1.05)
2007 (3.18) 1.49
2006 8.26 7.05*****
2005 (3.72) 2.21
2004 9.47 7.64
2003 10.22 7.51
=====================================================================================
Ratios/Supplemental Data
----------------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Before Credit/Reimbursement
------------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net
to Common Including Excluding Investment
Shares (000) Interest++(a) Interest++(a) Income++
-------------------------------------------------------------------------------------------------------
Insured Quality (NQI)
-------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $ 543,235 1.51%****** 1.21%****** 6.90%******
2007 569,958 1.52 1.18 6.53
2006 589,928 1.20 1.20 6.49
2005 585,777 1.19 1.19 6.58
2004 605,028 1.19 1.19 6.88
2003 598,102 1.20 1.20 6.93
Insured Opportunity (NIO)
------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 1,178,785 1.39****** 1.17****** 6.65******
2007 1,220,297 1.41 1.16 6.39
2006 1,263,172 1.17 1.17 6.38
2005 1,254,638 1.16 1.16 6.35
2004 1,302,985 1.16 1.16 6.59
2003 1,288,087 1.17 1.17 6.67
======================================================================================================
Ratios/Supplemental Data
---------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement****
---------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
================================================================================================
Insured Quality (NQI)
------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 1.50%****** 1.19%****** 6.92%****** 4%
2007 1.50 1.16 6.55 5
2006 1.20 1.20 6.49 13
2005 1.19 1.19 6.58 21
2004 1.19 1.19 6.88 8
2003 1.20 1.20 6.94 14
Insured Opportunity (NIO)
------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 1.37****** 1.16****** 6.67****** 4
2007 1.40 1.14 6.41 5
2006 1.17 1.17 6.38 13
2005 1.16 1.16 6.35 25
2004 1.16 1.16 6.59 8
2003 1.16 1.16 6.68 21
================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
----------------------------------------------------------------------------------------------------
Insured Quality (NQI)
----------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $ 318,000 $ 25,000 $ 67,707 $ 67,387 $ 13,780
2007 318,000 25,000 69,808 54,140 17,401
2006 318,000 25,000 71,378 -- --
2005 318,000 25,000 71,052 -- --
2004 318,000 25,000 72,565 -- --
2003 318,000 25,000 72,021 -- --
Insured Opportunity (NIO)
---------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 680,000 25,000 68,338 101,853 19,250
2007 680,000 25,000 69,864 86,103 23,070
2006 680,000 25,000 71,440 -- --
2005 680,000 25,000 71,126 -- --
2004 680,000 25,000 72,904 -- --
2003 680,000 25,000 72,356 -- --
===================================================================================================
* Distributions from Capital Gains to Preferred shareholders rounds to less
than $.01 per share.
** Distributions from Capital Gains to Common shareholders rounds to less
than $.01 per share.
*** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the
following month, is assumed to be reinvested at the ending market price.
The actual reinvestment for the last dividend declared in the period may
take place over several days, and in some instances may not be based on
the market price, so the actual reinvestment price may be different from
the price used in the calculation. Total returns are not annualized.
Total Return on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at
net asset value and reinvested capital gains distributions at net asset
value, if any. The last dividend declared in the period, which is
typically paid on the first business day of the following month, is
assumed to be reinvested at the ending net asset value. The actual
reinvest price for the last dividend declared in the period may often be
based on the Fund's market price (and not its net asset value), and
therefore may be different from the price used in calculation. Total
returns are not annualized.
**** After custodian fee credit and expense reimbursement, where applicable.
***** During the fiscal year ended October 31, 2006, Insured Quality (NQI) and
Insured Opportunity (NIO) received payments from the Adviser of $27,762
and $42,338, respectively, to offset losses realized on the disposal of
investments purchased in violation of each Fund's investment
restrictions. This reimbursement did not have an impact on the Funds'
Total Return on Common Share Net Asset Value.
****** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1- Inverse Floating Rate Securities.
(b) For the six months ended April 30, 2008.
See accompanying notes to financial statements.
--------------
90-91 spread
--------------
| Financial
| HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations
------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
---------------------------------------------------------------------------------------------------------------
Premier Insured Income (NIF)
---------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $14.90 $ .48 $(.57) $(.15) $ -- $(.24)
2007 15.40 .97 (.47) (.29) -- .21
2006 15.33 .98 .25 (.25) (.02) .96
2005 16.00 1.01 (.49) (.16) (.01) .35
2004 15.69 1.03 .36 (.08) -- 1.31
2003 15.59 1.05 .13 (.07) -- 1.11
Insured Premium Income 2 (NPX)
---------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 13.73 .44 (.47) (.13) -- (.16)
2007 14.16 .86 (.39) (.26) -- .21
2006 13.93 .86 .28 (.23) -- .91
2005 14.45 .89 (.44) (.14) -- .31
2004 14.24 .93 .23 (.07) -- 1.09
2003 14.17 .96 .03 (.06) -- .93
===============================================================================================================
Less Distributions
------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
-----------------------------------------------------------------------------------------------------
Premier Insured Income (NIF)
-----------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $(.32) $ -- $ (.32) $-- $14.34 $13.06
2007 (.71) -- (.71) -- 14.90 13.25
2006 (.79) (.10) (.89) -- 15.40 14.60
2005 (.93) (.09) (1.02) -- 15.33 14.40
2004 (.98) (.02) (1.00) -- 16.00 15.64
2003 (.98) (.03) (1.01) -- 15.69 15.51
Insured Premium Income 2 (NPX)
-----------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) (.31) -- (.31) -- 13.26 11.91
2007 (.64) -- (.64) -- 13.73 12.18
2006 (.68) -- (.68) -- 14.16 13.03
2005 (.83) -- (.83) -- 13.93 12.83
2004 (.88) -- (.88) -- 14.45 14.11
2003 (.86) -- (.86) -- 14.24 14.12
=====================================================================================================
Total Returns
-------------------
Based
on
Based Common
on Share Net
Market Asset
Value* Value*
--------------------------------------------------------------------------------------
Premier Insured Income (NIF)
--------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) .96% (1.62)%
2007 (4.66) 1.40
2006 7.68 6.46
2005 (1.66) 2.16
2004 7.55 8.62
2003 7.84 7.28
Insured Premium Income 2 (NPX)
--------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b)
2007 .31 (1.16)
2006 (1.77) 1.55
2005 7.11 6.75
2004 (3.32) 2.14
2003 6.42 7.89
8.84 6.70
======================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement**
---------------------------------------- ----------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
------------------------------------------------------------------------------------------------------------------------------------
Premier Insured Income (NIF)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $278,488 1.38%*** 1.23%*** 6.56%*** 1.35%*** 1.20%*** 6.59%*** 4%
2007 289,400 1.38 1.21 6.41 1.36 1.19 6.43 9
2006 299,001 1.22 1.22 6.44 1.21 1.21 6.44 8
2005 297,624 1.20 1.20 6.39 1.20 1.20 6.40 20
2004 310,666 1.21 1.21 6.53 1.20 1.20 6.53 13
2003 303,912 1.22 1.22 6.66 1.21 1.21 6.68 25
Insured Premium Income 2 (NPX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b)
2007 495,189 1.67*** 1.17*** 6.51*** 1.65*** 1.15*** 6.53*** 4
2006 513,021 1.76 1.16 6.19 1.74 1.14 6.21 5
2005 528,984 1.16 1.16 6.14 1.16 1.16 6.15 15
2004 520,508 1.16 1.16 6.20 1.16 1.16 6.20 23
2003 539,697 1.16 1.16 6.52 1.16 1.16 6.53 14
530,975 1.17 1.17 6.68 1.16 1.16 6.69 31
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
===================================================================================================
Premier Insured Income (NIF)
---------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $161,000 $25,000 $68,244 $17,315 $26,382
2007 161,000 25,000 69,938 14,015 33,137
2006 161,000 25,000 71,429 -- --
2005 161,000 25,000 71,215 -- --
2004 161,000 25,000 73,240 -- --
2003 161,000 25,000 72,191 -- --
Insured Premium Income 2 (NPX)
---------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 268,900 25,000 71,038 77,080 10,913
2007 268,900 25,000 72,696 92,040 9,495
2006 268,900 25,000 74,180 -- --
2005 268,900 25,000 73,392 -- --
2004 268,900 25,000 75,176 -- --
2003 268,900 25,000 74,365 -- --
===================================================================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. The last dividend declared in the period, which
is typically paid on the first business day of the following month, is
assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return on Common Share Net Asset Value is the combination of changes
in Common share net asset value, reinvested dividend income at net asset
value and reinvested capital gains distributions at net asset value, if
any. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1- Inverse Floating Rate Securities.
(b) For the six months ended April 30, 2008.
See accompanying notes to financial statements.
--------------
92-93 spread
--------------
| Financial
| HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations
------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
---------------------------------------------------------------------------------------------------------------
Insured Dividend Advantage (NVG)
---------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(c) $15.09 $ .50 $(.32) $(.14) $ -- $ .04
2007 15.50 1.00 (.38) (.28) -- .34
2006 15.23 1.01 .33 (.25) -- 1.09
2005 15.78 1.00 (.38) (.15) (.01) .46
2004 15.41 1.02 .42 (.07) -- 1.37
2003 15.35 1.03 .15 (.07) (.01) 1.10
Insured Tax-Free Advantage (NEA)
---------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(c) 14.71 .47 (.30) (.13) -- .04
2007 14.93 .97 (.21) (.27) -- .49
2006 14.56 .97 .38 (.24) -- 1.11
2005 14.75 .97 (.19) (.15) -- .63
2004 14.54 .99 .21 (.07) -- 1.13
2003(b) 14.33 .82 .42 (.05) -- 1.19
===============================================================================================================
Less Distributions
-------------------------------
Net Offering
Investment Capital Costs and Ending
Income to Gains to Preferred Common
Common Common Share Share Ending
Share- Share- Underwriting Net Asset Market
holders holders Total Discounts Value Value
------------------------------------------------------------------------------------------------------
Insured Dividend Advantage (NVG)
------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(c) $ (.34) $ -- $ (.34) $ -- $ 14.79 $ 13.47
2007 (.75) -- (.75) -- 15.09 13.71
2006 (.82) -- (.82) -- 15.50 14.89
2005 (.89) (.12) (1.01) -- 15.23 14.17
2004 (.93) (.07) (1.00) -- 15.78 14.89
2003 (.93) (.11) (1.04) -- 15.41 14.81
Insured Tax-Free Advantage (NEA)
------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(c) (.35) -- (.35) -- 14.40 14.03
2007 (.71) -- (.71) -- 14.71 14.30
2006 (.74) -- (.74) -- 14.93 14.35
2005 (.81) (.01) (.82) -- 14.56 13.41
2004 (.92) (.01) (.93) .01 14.75 14.91
2003(b) (.78) -- (.78) (.20) 14.54 14.79
======================================================================================================
Total Returns
---------------------
Based
on
Based Common
on Share Net
Market Asset
Value* Value*
------------------------------------------------------------------------------------------
Insured Dividend Advantage (NVG)
------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(c) .78% .31%
2007 (3.12) 2.25
2006 11.09 7.39
2005 2.00 2.93
2004 7.61 9.19
2003 6.10 7.37
Insured Tax-Free Advantage (NEA)
------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(c) .58 .32
2007 4.59 3.35
2006 12.82 7.82
2005 (4.68) 4.33
2004 7.41 8.07
2003(b) 3.87 6.98
==========================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement**
----------------------------------------- ------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
------------------------------------------------------------------------------------------------------------------------------------
Insured Dividend Advantage (NVG)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(c) $440,873 1.33%*** 1.16%*** 6.35%*** .93%*** .76%*** 6.75%*** 4%
2007 449,982 1.31 1.14 6.15 .88 .71 6.58 12
2006 462,037 1.15 1.15 6.15 .70 .70 6.60 15
2005 454,018 1.15 1.15 5.96 .70 .70 6.42 2
2004 470,389 1.15 1.15 6.09 .70 .70 6.54 11
2003 459,368 1.17 1.17 6.22 .72 .72 6.67 25
Insured Tax-Free Advantage (NEA)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(c) 266,808 1.19*** 1.17*** 6.16*** .80*** .78*** 6.55*** 3
2007 272,391 1.19 1.17 6.04 .69 .67 6.54 6
2006 276,506 1.19 1.19 6.12 .69 .69 6.61 --
2005 269,614 1.19 1.19 6.06 .70 .70 6.55 1
2004 273,112 1.20 1.20 6.24 .71 .71 6.73 13
2003(b) 269,112 1.12* 1.12* 5.52* .65* .65* 6.00* 72
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
---------------------------------------------------------------------------------------------------
Insured Dividend Advantage (NVG)
---------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(c) $233,000 $25,000 $72,304 $34,933 $ 20,290
2007 233,000 25,000 73,281 20,938 33,619
2006 233,000 25,000 74,575 -- --
2005 233,000 25,000 73,714 -- --
2004 233,000 25,000 75,471 -- --
2003 233,000 25,000 74,288 -- --
Insured Tax-Free Advantage (NEA)
---------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(c) 144,000 25,000 71,321 7,305 57,237
2007 144,000 25,000 72,290 1,305 320,074
2006 144,000 25,000 73,005 -- --
2005 144,000 25,000 71,808 -- --
2004 144,000 25,000 72,415 -- --
2003(b) 144,000 25,000 71,721 -- --
===================================================================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return on Common Share Net Asset Value is the combination of changes
in Common share net asset value, reinvested dividend income at net asset
value and reinvested capital gains distributions at net asset value, if
any. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1- Inverse Floating Rate Securities.
(b) For the period November 21, 2002 (commencement of operations) through
October 31, 2003.
(c) For the six months ended April 30, 2008.
See accompanying notes to financial statements.
--------------
94-95 spread
--------------
Reinvest Automatically
EASILY and CONVENIENTLY
--------------------------------------------------------------------------------
Nuveen makes reinvesting easy. A phone call is all it takes to set up your
reinvestment account.
Nuveen Closed-End Funds Dividend Reinvestment Plan
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
Easy and convenient
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
How shares are purchased
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price per share may exceed
the market price at the time of valuation, resulting in the acquisition of fewer
shares than if the dividend or distribution had been paid in shares issued by
the Fund. A pro rata portion of any applicable brokerage commissions on open
market purchases will be paid by Plan participants. These commissions usually
will be lower than those charged on individual transactions.
-----
96
-----
Flexible
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
Call today to start reinvesting dividends and/or distributions
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
-----
97
-----
Glossary of
TERMS USED in this REPORT
--------------------------------------------------------------------------------
o Auction Rate Bond: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed", with current holders receiving a
formula-based interest rate until the next scheduled auction.
o Average Annual Total Return: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time
period. It expresses the return that would have been necessary each year
to equal the investment's actual cumulative performance (including change
in NAV or market price and reinvested dividends and capital gains
distributions, if any) over the time period being considered.
o Average Effective Maturity: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments
or the exercise of call provisions unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o Inverse Floaters: Inverse floating rate securities are created by
depositing a municipal bond, typically with a fixed interest rate, into a
special purpose trust created by a broker-dealer. This trust, in turn, (a)
issues floating rate certificates typically paying short-term tax-exempt
interest rates to third parties in amounts equal to some fraction of the
deposited bond's par amount or market value, and (b) issues an inverse
floating rate certificate (sometimes referred to as an "inverse floater")
to an investor (such as a Fund) interested in gaining investment exposure
to a long-term municipal bond. The income received by the holder of the
inverse floater varies inversely with the short-term rate paid to the
floating rate certificates' holders, and in most circumstances the holder
of the inverse floater bears substantially all of the underlying bond's
downside investment risk. The holder of the inverse floater typically also
benefits disproportionately from any potential appreciation of the
underlying bond's value. Hence, an inverse floater essentially represents
an investment in the underlying bond on a leveraged basis.
o Leverage-Adjusted Duration: Duration is a measure of the expected period
over which a bond's principal and interest will be paid, and consequently
is a measure of the sensitivity of a bond's or bond Fund's value to
changes when market interest rates change. Generally, the longer a bond's
or Fund's duration, the more the price of the bond or Fund will change as
interest rates change. Leverage-adjusted duration takes into account the
leveraging process for a Fund and therefore is longer than the duration of
the Fund's portfolio of bonds.
o Market Yield (also known as Dividend Yield or Current Yield): An
investment's current annualized dividend divided by its current market
price.
o Net Asset Value (NAV): A Fund's common share NAV per share is calculated
by subtracting the liabilities of the Fund (including any Preferred shares
issued in order to leverage the Fund) from its total assets and then
dividing the remainder by the number of shares outstanding. Fund NAVs are
calculated at the end of each business day.
o Taxable-Equivalent Yield: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal bond
investment.
o Zero Coupon Bond: A zero coupon bond does not pay a regular interest
coupon to its holders during the life of the bond. Tax-exempt income to
the holder of the bond comes from accretion of the difference between the
original purchase price of the bond at issuance and the par value of the
bond at maturity and is effectively paid at maturity. The market prices of
zero coupon bonds generally are more volatile than the market prices of
bonds that pay interest periodically.
-----
98
-----
Other Useful INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2007, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities without charge, upon request,
by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website
at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 100 F Street NE, Washington, D.C. 20549.
CEO Certification Disclosure
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
Board of Directors/Trustees
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Carole E. Stone
Fund Manager
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
Custodian
State Street Bank & Trust Company
Boston, MA
Transfer Agent and
Shareholder Services
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
Independent Registered
Public Accounting Firm
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the period covered by this report. Any future
repurchases will be reported to shareholders in the next annual or semi-annual
report.
-----
99
-----
Nuveen Investments:
--------------------
SERVING INVESTORS FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
We offer many different investing solutions for our clients' different needs.
Managing $153 billion in assets, as of March 31, 2008, Nuveen Investments offers
access to a number of different asset classes and investing solutions through a
variety of products. Nuveen Investments markets its capabilities under six
distinct brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; Symphony,
a leading institutional manager of market-neutral alternative investment
portfolios; Santa Barbara, a leader in growth equities; and Tradewinds, a leader
in global equities.
Find out how we can help you reach your financial goals.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest. Be sure to obtain a
prospectus, where applicable. Investors should consider the investment objective
and policies, risk considerations, charges and expenses of the Fund carefully
before investing. The prospectus contains this and other information relevant to
an investment in the Fund. For a prospectus, please contact your securities
representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/etf
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ESA-D-0408D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See
Ex-99.CERT attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference: See Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Insured Municipal Opportunity Fund, Inc.
-----------------------------------------------------------
By (Signature and Title) /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
(Vice President and Secretary)
Date: July 9, 2008
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: July 9, 2008
-------------------------------------------------------------------
By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: July 9, 2008
-------------------------------------------------------------------