Chairman’s Letter to Shareholders
|
4
|
Portfolio Managers’ Comments
|
5
|
Fund Leverage and Other Information
|
10
|
Common Share Dividend and Share Price Information
|
14
|
Performance Overviews
|
16
|
Shareholder Meeting Report
|
22
|
Report of Independent Registered Public Accounting Firm
|
26
|
Portfolios of Investments
|
27
|
Statement of Assets and Liabilities
|
85
|
Statement of Operations
|
87
|
Statement of Changes in Net Assets
|
89
|
Statement of Cash Flows
|
92
|
Financial Highlights
|
94
|
Notes to Financial Statements
|
102
|
Annual Investment Management Agreement Approval Process
|
116
|
Board Members and Officers
|
124
|
Reinvest Automatically, Easily and Conveniently
|
129
|
Glossary of Terms Used in this Report
|
131
|
Other Useful Information
|
135
|
4
|
Nuveen Investments
|
Nuveen Investments
|
5
|
6
|
Nuveen Investments
|
Fund
|
1-Year
|
5-Year
|
10-Year
|
|||||||
NQI
|
5.98
|
%
|
4.12
|
%
|
5.11
|
%
|
||||
NIO
|
4.73
|
%
|
4.37
|
%
|
5.31
|
%
|
||||
NIF
|
4.40
|
%
|
4.54
|
%
|
5.36
|
%
|
||||
NPX
|
6.01
|
%
|
4.44
|
%
|
5.34
|
%
|
||||
NVG
|
4.83
|
%
|
4.86
|
%
|
N/A
|
|||||
NEA
|
3.92
|
%
|
5.11
|
%
|
N/A
|
|||||
Standard & Poors (S&P) National Insured Municipal Bond Index*
|
4.06
|
%
|
4.52
|
%
|
4.99
|
%
|
||||
Lipper General and Insured Leveraged Municipal Debt Funds Classification Average*
|
4.80
|
%
|
4.20
|
%
|
5.59
|
%
|
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.
|
|
*
|
Refer to Glossary of Terms Used in this Report for definitions.
|
Nuveen Investments
|
7
|
8
|
Nuveen Investments
|
•
|
Nuveen Insured Quality Municipal Fund, Inc. (NQI) will change to Nuveen Quality Municipal Fund, Inc. (NQI)
|
|
•
|
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) will change to Nuveen Municipal Opportunity Fund, Inc. (NIO)
|
|
•
|
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF) will change to Nuveen Premier Municipal Opportunity Fund, Inc. (NIF)
|
|
•
|
Nuveen Insured Premium Income Municipal Fund 2 (NPX) will change to Nuveen Premium Income Municipal Opportunity Fund (NPX)
|
|
•
|
Nuveen Insured Dividend Advantage Municipal Fund (NVG) will change to Nuveen Dividend Advantage Municipal Income Fund (NVG)
|
|
•
|
Nuveen Insured Tax-Free Advantage Municipal Fund (NEA) will change to Nuveen AMT-Free Municipal Income Fund (NEA)
|
Nuveen Investments
|
9
|
10
|
Nuveen Investments
|
Nuveen Investments
|
11
|
Fund
|
Series
|
MTP Shares Issued
at Liquidation Value |
Annual
Interest Rate |
NYSE Ticker
|
|||||||||
NVG
|
2014
|
$
|
108,000,000
|
2.95%
|
NVG PrC
|
||||||||
NEA
|
2015
|
$
|
83,000,000
|
2.85%
|
NEA PrC
|
VMTP Shares
|
Fund
|
VMTP
Series |
VMTP Shares Issued
at Liquidation Value |
|||||
NQI
|
2014
|
$
|
240,400,000
|
||||
NVG
|
2014
|
$
|
92,500,000
|
||||
NEA
|
2014
|
$
|
67,600,000
|
VRDP Shares
|
Fund
|
VRDP Shares Issued
at Liquidation Value |
|||
NIO
|
$
|
667,200,000
|
||
NIF
|
$
|
130,900,000
|
||
NPX
|
$
|
219,000,000
|
12
|
Nuveen Investments
|
Nuveen Investments
|
13
|
Fund
|
Long-Term Capital Gains
(per share) |
Short-Term Capital Gains
and/or Ordinary Income (per share) |
|||||
NIO
|
—
|
$
|
0.0044
|
||||
NVG
|
$
|
0.0029
|
—
|
Fund
|
Common Shares
Repurchased and Retired |
% of Outstanding
Common Shares |
|||||
NIO
|
2,900
|
0.0
|
%
|
||||
NVG
|
10,400
|
0.0
|
%
|
||||
NEA
|
19,300
|
0.1
|
%
|
14
|
Nuveen Investments
|
Fund
|
10/31/11
(-)Discount
|
12-Month Average
(-)Discount
|
|||||
NQI
|
(-)0.42%
|
(-)2.67
|
%
|
||||
NIO
|
(-)3.34%
|
(-)3.94
|
%
|
||||
NIF
|
(-)3.13%
|
(-)0.32
|
%
|
||||
NPX
|
(-)5.24%
|
(-)5.75
|
%
|
||||
NVG
|
(-)4.72%
|
(-)5.49
|
%
|
||||
NEA
|
(-)5.78%
|
(-)5.21
|
%
|
Nuveen Investments
|
15
|
NQI
|
Nuveen Insured
|
|
Performance
|
Quality Municipal
|
|
OVERVIEW
|
Fund, Inc.
|
|
as of October 31, 2011
|
Fund Snapshot
|
||||
Common Share Price
|
$
|
14.11
|
||
Common Share Net Asset Value (NAV)
|
$
|
14.17
|
||
Premium/(Discount) to NAV
|
-0.42
|
%
|
||
Market Yield
|
6.38
|
%
|
||
Taxable-Equivalent Yield2
|
8.86
|
%
|
||
Net Assets Applicable to
|
||||
Common Shares ($000)
|
$
|
544,500
|
Leverage
|
||||
Structural Leverage
|
30.63
|
%
|
||
Effective Leverage
|
38.77
|
%
|
On Share Price
|
On NAV
|
||||||
1-Year
|
4.65%
|
|
5.98
|
%
|
|||
5-Year
|
5.03%
|
|
4.12
|
%
|
|||
10-Year
|
5.77%
|
|
5.11
|
%
|
States5
|
||||
(as a % of total investments)
|
||||
California
|
16.9
|
%
|
||
Texas
|
8.9
|
%
|
||
Illinois
|
7.6
|
%
|
||
Florida
|
7.3
|
%
|
||
Washington
|
6.4
|
%
|
||
Pennsylvania
|
5.8
|
%
|
||
New York
|
5.4
|
%
|
||
Kentucky
|
3.9
|
%
|
||
Massachusetts
|
3.7
|
%
|
||
Arizona
|
3.7
|
%
|
||
Indiana
|
2.7
|
%
|
||
Colorado
|
2.5
|
%
|
||
Louisiana
|
2.5
|
%
|
||
Ohio
|
2.3
|
%
|
||
Georgia
|
2.2
|
%
|
||
Other
|
18.2
|
%
|
||
Portfolio Composition5
|
||||
(as a % of total investments)
|
||||
Tax Obligation/Limited
|
24.0
|
%
|
||
Transportation
|
16.1
|
%
|
||
Tax Obligation/General
|
13.8
|
%
|
||
Health Care
|
12.0
|
%
|
||
Water and Sewer
|
10.7
|
%
|
||
U.S. Guaranteed
|
10.3
|
%
|
||
Other
|
13.1
|
%
|
||
Insurers5
|
||||
(as a % of total Insured investments)
|
||||
AGM
|
33.4
|
%
|
||
NPFG3
|
26.5
|
%
|
||
AMBAC
|
18.3
|
%
|
||
FGIC
|
17.8
|
%
|
||
Other
|
4.0
|
%
|
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
|
|
1
|
The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. At the end of the reporting period, 88% of the Fund’s total investments are invested in Insured securities.
|
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
|
MBIA’s public finance subsidiary.
|
4
|
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
|
5 | Holdings are subject to change. |
16
|
Nuveen Investments
|
NIO
|
Nuveen Insured
|
|
Performance
|
Municipal Opportunity
|
|
OVERVIEW
|
Fund, Inc.
|
|
as of October 31, 2011
|
Fund Snapshot
|
||||
Common Share Price
|
$
|
14.20
|
||
Common Share Net Asset Value (NAV)
|
$
|
14.69
|
||
Premium/(Discount) to NAV
|
-3.34
|
%
|
||
Market Yield
|
6.17
|
%
|
||
Taxable-Equivalent Yield2
|
8.57
|
%
|
||
Net Assets Applicable to
|
||||
Common Shares ($000)
|
$
|
1,404,814
|
Leverage
|
||||
Structural Leverage
|
32.20
|
%
|
||
Effective Leverage
|
37.96
|
%
|
On Share Price
|
On NAV
|
||||||
1-Year
|
2.08%
|
|
4.73
|
%
|
|||
5-Year
|
5.15%
|
|
4.37
|
%
|
|||
10-Year
|
5.90%
|
|
5.31
|
%
|
States5
|
||||
(as a % of total investments)
|
||||
Florida
|
16.5
|
%
|
||
California
|
14.1
|
%
|
||
Nevada
|
5.6
|
%
|
||
New York
|
5.3
|
%
|
||
Illinois
|
4.9
|
%
|
||
Washington
|
4.0
|
%
|
||
South Carolina
|
3.8
|
%
|
||
Texas
|
3.7
|
%
|
||
Massachusetts
|
3.4
|
%
|
||
Pennsylvania
|
3.3
|
%
|
||
Louisiana
|
3.2
|
%
|
||
Ohio
|
3.1
|
%
|
||
Indiana
|
3.0
|
%
|
||
New Jersey
|
2.8
|
%
|
||
Colorado
|
2.1
|
%
|
||
Wisconsin
|
1.9
|
%
|
||
Other
|
19.3
|
%
|
||
Portfolio Composition5
|
||||
(as a % of total investments)
|
||||
Tax Obligation/Limited
|
27.2
|
%
|
||
U.S. Guaranteed
|
15.1
|
%
|
||
Transportation
|
14.6
|
%
|
||
Tax Obligation/General
|
12.6
|
%
|
||
Water and Sewer
|
10.9
|
%
|
||
Utilities
|
8.1
|
%
|
||
Other
|
11.5
|
%
|
||
Insurers5
|
||||
(as a % of total Insured investments)
|
||||
AGM
|
26.5
|
%
|
||
NPFG3
|
25.4
|
%
|
||
FGIC
|
22.9
|
%
|
||
AMBAC
|
15.3
|
%
|
||
Other
|
9.9
|
%
|
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
|
|
1
|
The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. At the end of the reporting period, 93% of the Fund’s total investments are invested in Insured securities.
|
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
|
MBIA’s public finance subsidiary.
|
4
|
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
|
5
|
Holdings are subject to change.
|
6
|
The Fund paid shareholders a net ordinary income distribution in December 2010 of $0.0044 per share.
|
Nuveen Investments
|
17
|
NIF
|
Nuveen Premier
|
|
Performance
|
Insured Municipal
|
|
OVERVIEW
|
Income Fund, Inc.
|
|
as of October 31, 2011
|
Fund Snapshot
|
||||
Common Share Price
|
$
|
14.26
|
||
Common Share Net Asset Value (NAV)
|
$
|
14.72
|
||
Premium/(Discount) to NAV
|
-3.13
|
%
|
||
Market Yield
|
6.35
|
%
|
||
Taxable-Equivalent Yield2
|
8.82
|
%
|
||
Net Assets Applicable to
|
||||
Common Shares ($000)
|
$
|
287,068
|
Leverage
|
||||
Structural Leverage
|
31.32
|
%
|
||
Effective Leverage
|
38.58
|
%
|
On Share Price
|
On NAV
|
||||||
1-Year
|
-1.98%
|
|
4.40
|
%
|
|||
5-Year
|
5.29%
|
|
4.54
|
%
|
|||
10-Year
|
5.44%
|
|
5.36
|
%
|
States5
|
||||
(as a % of total investments)
|
||||
California
|
15.0
|
%
|
||
Illinois
|
9.9
|
%
|
||
Washington
|
8.8
|
%
|
||
Texas
|
7.0
|
%
|
||
Colorado
|
5.1
|
%
|
||
New York
|
4.7
|
%
|
||
Pennsylvania
|
4.6
|
%
|
||
Nevada
|
4.4
|
%
|
||
Florida
|
4.1
|
%
|
||
Indiana
|
3.6
|
%
|
||
Massachusetts
|
3.1
|
%
|
||
Oregon
|
2.8
|
%
|
||
Arizona
|
2.7
|
%
|
||
Ohio
|
2.7
|
%
|
||
Louisiana
|
2.1
|
%
|
||
Other
|
19.4
|
%
|
||
Portfolio Composition5
|
||||
(as a % of total investments)
|
||||
U.S. Guaranteed
|
21.6
|
%
|
||
Tax Obligation/Limited
|
17.7
|
%
|
||
Transportation
|
16.5
|
%
|
||
Tax Obligation/General
|
16.4
|
%
|
||
Water and Sewer
|
10.1
|
%
|
||
Health Care
|
7.9
|
%
|
||
Other
|
9.8
|
%
|
||
Insurers5
|
||||
(as a % of total Insured investments)
|
||||
AGM
|
31.4
|
%
|
||
NPFG3
|
30.0
|
%
|
||
FGIC
|
20.4
|
%
|
||
AMBAC
|
14.0
|
%
|
||
Other
|
4.2
|
%
|
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
|
|
1
|
The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. At the end of the reporting period, 87% of the Fund’s total investments are invested in Insured securities.
|
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
|
MBIA’s public finance subsidiary.
|
4
|
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
|
5
|
Holdings are subject to change.
|
18
|
Nuveen Investments
|
NPX
|
Nuveen Insured
|
|
Performance
|
Premium Income
|
|
OVERVIEW
|
Municipal Fund 2
|
|
as of October 31, 2011
|
Fund Snapshot
|
||||
Common Share Price
|
$
|
12.83
|
||
Common Share Net Asset Value (NAV)
|
$
|
13.54
|
||
Premium/(Discount) to NAV
|
-5.24
|
%
|
||
Market Yield
|
5.80
|
%
|
||
Taxable-Equivalent Yield2
|
8.06
|
%
|
||
Net Assets Applicable to
|
||||
Common Shares ($000)
|
$
|
505,766
|
Leverage
|
||||
Structural Leverage
|
30.22
|
%
|
||
Effective Leverage
|
36.96
|
%
|
On Share Price
|
On NAV
|
||||||
1-Year
|
1.75%
|
|
6.01
|
%
|
|||
5-Year
|
5.48%
|
|
4.44
|
%
|
|||
10-Year
|
5.23%
|
|
5.34
|
%
|
States5
|
||||
(as a % of total investments)
|
||||
California
|
15.5
|
%
|
||
Texas
|
8.3
|
%
|
||
Pennsylvania
|
6.6
|
%
|
||
New York
|
6.3
|
%
|
||
Colorado
|
6.2
|
%
|
||
New Jersey
|
6.0
|
%
|
||
Florida
|
5.5
|
%
|
||
Illinois
|
5.3
|
%
|
||
Indiana
|
3.8
|
%
|
||
Washington
|
3.7
|
%
|
||
Louisiana
|
3.7
|
%
|
||
Arizona
|
3.2
|
%
|
||
Georgia
|
3.1
|
%
|
||
Hawaii
|
2.6
|
%
|
||
Nevada
|
2.3
|
%
|
||
Other
|
17.9
|
%
|
||
Portfolio Composition5
|
||||
(as a % of total investments)
|
||||
Tax Obligation/Limited
|
19.2
|
%
|
||
Transportation
|
14.4
|
%
|
||
Utilities
|
13.3
|
%
|
||
Water and Sewer
|
11.9
|
%
|
||
U.S. Guaranteed
|
11.6
|
%
|
||
Tax Obligation/General
|
10.4
|
%
|
||
Health Care
|
9.0
|
%
|
||
Other
|
10.2
|
%
|
||
Insurers5
|
||||
(as a % of total Insured investments)
|
||||
AGM
|
31.3
|
%
|
||
NPFG3
|
25.7
|
%
|
||
AMBAC
|
21.5
|
%
|
||
FGIC
|
15.2
|
%
|
||
Other
|
6.3
|
%
|
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
|
|
1
|
The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. At the end of the reporting period, 90% of the Fund’s total investments are invested in Insured securities.
|
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
|
MBIA’s public finance subsidiary.
|
4
|
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
|
5
|
Holdings are subject to change.
|
6
|
Rounds to less than 1%.
|
Nuveen Investments
|
19
|
NVG
|
Nuveen Insured
|
|
Performance
|
Dividend Advantage
|
|
OVERVIEW
|
Municipal Fund
|
|
as of October 31, 2011
|
Fund Snapshot
|
||||
Common Share Price
|
$
|
14.32
|
||
Common Share Net Asset Value (NAV)
|
$
|
15.03
|
||
Premium/(Discount) to NAV
|
-4.72
|
%
|
||
Market Yield
|
6.28
|
%
|
||
Taxable-Equivalent Yield2
|
8.72
|
%
|
||
Net Assets Applicable to
|
||||
Common Shares ($000)
|
$
|
448,070
|
Leverage
|
||||
Structural Leverage
|
30.91
|
%
|
||
Effective Leverage
|
37.75
|
%
|
On Share Price
|
On NAV
|
||||||
1-Year
|
2.89%
|
|
4.83
|
%
|
|||
5-Year
|
5.06%
|
|
4.86
|
%
|
|||
Since Inception
|
5.70%
|
|
6.39
|
%
|
States5
|
||||
(as a % of total municipal bonds)
|
||||
Texas
|
13.8
|
%
|
||
California
|
9.9
|
%
|
||
Washington
|
9.9
|
%
|
||
Indiana
|
9.3
|
%
|
||
Illinois
|
8.6
|
%
|
||
Florida
|
7.5
|
%
|
||
Tennessee
|
6.2
|
%
|
||
New York
|
4.4
|
%
|
||
Colorado
|
3.8
|
%
|
||
Pennsylvania
|
3.2
|
%
|
||
Louisiana
|
3.0
|
%
|
||
Alaska
|
2.3
|
%
|
||
Other
|
18.1
|
%
|
||
Portfolio Composition5
|
||||
(as a % of total investments)
|
||||
U.S. Guaranteed
|
22.7
|
%
|
||
Tax Obligation/Limited
|
19.3
|
%
|
||
Transportation
|
17.3
|
%
|
||
Tax Obligation/General
|
11.3
|
%
|
||
Health Care
|
8.3
|
%
|
||
Utilities
|
7.1
|
%
|
||
Other
|
14.0
|
%
|
||
Insurers5
|
||||
(as a % of total Insured investments)
|
||||
AGM
|
29.8
|
%
|
||
NPFG3
|
27.5
|
%
|
||
AMBAC
|
23.4
|
%
|
||
FGIC
|
15.7
|
%
|
||
Other
|
3.6
|
%
|
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
|
|
1
|
The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. At the end of the reporting period, 91% of the Fund’s total investments are invested in Insured securities.
|
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
|
MBIA’s public finance subsidiary.
|
4
|
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
|
5
|
Holdings are subject to change.
|
6
|
The Fund paid shareholders a capital gains distribution in December 2010 of $0.0029 per share.
|
7
|
Rounds to less than 1%.
|
20
|
Nuveen Investments
|
NEA
|
Nuveen Insured
|
|
Performance
|
Tax-Free Advantage
|
|
OVERVIEW
|
Municipal Fund
|
|
as of October 31, 2011
|
Fund Snapshot
|
||||
Common Share Price
|
$
|
13.85
|
||
Common Share Net Asset Value (NAV)
|
$
|
14.70
|
||
Premium/(Discount) to NAV
|
-5.78
|
%
|
||
Market Yield
|
6.06
|
%
|
||
Taxable-Equivalent Yield2
|
8.42
|
%
|
||
Net Assets Applicable to
|
||||
Common Shares ($000)
|
$
|
326,909
|
Leverage
|
||||
Structural Leverage
|
31.54
|
%
|
||
Effective Leverage
|
37.91
|
%
|
On Share Price
|
On NAV
|
||||||
1-Year
|
-1.60%
|
|
3.92
|
%
|
|||
5-Year
|
4.93%
|
|
5.11
|
%
|
|||
Since Inception
|
4.84%
|
|
5.89
|
%
|
States5
|
||||
(as a % of total investments)
|
||||
Florida
|
14.6
|
%
|
||
California
|
14.3
|
%
|
||
New York
|
7.0
|
%
|
||
Washington
|
6.4
|
%
|
||
Michigan
|
6.1
|
%
|
||
Texas
|
5.6
|
%
|
||
Pennsylvania
|
5.1
|
%
|
||
Indiana
|
4.8
|
%
|
||
Alabama
|
4.4
|
%
|
||
South Carolina
|
3.8
|
%
|
||
Illinois
|
3.7
|
%
|
||
Arizona
|
3.7
|
%
|
||
Wisconsin
|
3.6
|
%
|
||
Other
|
16.9
|
%
|
||
Portfolio Composition5
|
||||
(as a % of total investments)
|
||||
Tax Obligation/Limited
|
28.4
|
%
|
||
U.S. Guaranteed
|
27.0
|
%
|
||
Health Care
|
10.5
|
%
|
||
Water and Sewer
|
9.0
|
%
|
||
Transportation
|
8.0
|
%
|
||
Utilities
|
7.1
|
%
|
||
Other
|
10.0
|
%
|
||
Insurers5
|
||||
(as a % of total Insured investments)
|
||||
NPFG3
|
31.7
|
%
|
||
AMBAC
|
25.0
|
%
|
||
AGM
|
24.1
|
%
|
||
FGIC
|
10.7
|
%
|
||
Other
|
8.5
|
%
|
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.
|
|
1
|
The Fund intends to invest at least 80% of its managed assets in municipal securities that are covered by insurance guaranteeing the timely payment of principal and interest. See Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies, Insurance for more information. At the end of the reporting period, 90% of the Fund’s total investments are invested in Insured securities.
|
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
|
MBIA’s public finance subsidiary.
|
4
|
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by a national rating agency.
|
5
|
Holdings are subject to change.
|
Nuveen Investments
|
21
|
NQI
|
Shareholder Meeting Report
|
|
NIO
|
||
NIF
|
||
|
The annual meeting of shareholders was held on July 25, 2011, in the Lobby Conference Room, 333 West Wacker Drive, Chicago, IL360606; at this meeting the shareholders were asked to vote on the election of Board Members, the elimination of Fundamental Investment Policies and the approval of new Fundamental Investment Policies.3The meeting was subsequently adjourned to August 31, 2011 and additionally adjourned to October 19, 2011, for NEA and NVG.3NVG was additionally adjourned to November 16, 2011.
|
NQI
|
NIO
|
NIF
|
|||||||||||||||||
Common and Preferred shares voting together as a class
|
Preferred shares voting together as a class
|
Common and Preferred shares voting together as a class
|
Preferred shares voting together as a class
|
Common and Preferred shares voting together as a class
|
Preferred shares voting together as a class
|
||||||||||||||
Approval of the Board Members was reached as follows:
|
|||||||||||||||||||
John P. Amboian
|
|||||||||||||||||||
For
|
24,291,767
|
—
|
57,260,673
|
—
|
11,966,786
|
—
|
|||||||||||||
Withhold
|
968,257
|
—
|
2,322,576
|
—
|
439,919
|
—
|
|||||||||||||
Total
|
25,260,024
|
—
|
59,583,249
|
—
|
12,406,705
|
—
|
|||||||||||||
Robert P. Bremner
|
|||||||||||||||||||
For
|
24,267,775
|
—
|
57,229,807
|
—
|
11,949,397
|
—
|
|||||||||||||
Withhold
|
992,249
|
—
|
2,353,442
|
—
|
457,308
|
—
|
|||||||||||||
Total
|
25,260,024
|
—
|
59,583,249
|
—
|
12,406,705
|
—
|
|||||||||||||
Jack B. Evans
|
|||||||||||||||||||
For
|
24,277,942
|
—
|
57,230,943
|
—
|
11,958,938
|
—
|
|||||||||||||
Withhold
|
982,082
|
—
|
2,352,306
|
—
|
447,767
|
—
|
|||||||||||||
Total
|
25,260,024
|
—
|
59,583,249
|
—
|
12,406,705
|
—
|
|||||||||||||
William C. Hunter
|
|||||||||||||||||||
For
|
—
|
2,404
|
—
|
6,372
|
—
|
1,069
|
|||||||||||||
Withhold
|
—
|
—
|
—
|
300
|
—
|
240
|
|||||||||||||
Total
|
—
|
2,404
|
—
|
6,672
|
—
|
1,309
|
|||||||||||||
David J. Kundert
|
|||||||||||||||||||
For
|
24,264,377
|
—
|
57,231,148
|
—
|
11,949,387
|
—
|
|||||||||||||
Withhold
|
995,647
|
—
|
2,352,101
|
—
|
457,318
|
—
|
|||||||||||||
Total
|
25,260,024
|
—
|
59,583,249
|
—
|
12,406,705
|
—
|
|||||||||||||
William J. Schneider
|
|||||||||||||||||||
For
|
—
|
2,404
|
—
|
6,372
|
—
|
1,069
|
|||||||||||||
Withhold
|
—
|
—
|
—
|
300
|
—
|
240
|
|||||||||||||
Total
|
—
|
2,404
|
—
|
6,672
|
—
|
1,309
|
|||||||||||||
Judith M. Stockdale
|
|||||||||||||||||||
For
|
24,271,690
|
—
|
57,243,129
|
—
|
11,932,535
|
—
|
|||||||||||||
Withhold
|
988,334
|
—
|
2,340,120
|
—
|
474,170
|
—
|
|||||||||||||
Total
|
25,260,024
|
—
|
59,583,249
|
—
|
12,406,705
|
—
|
|||||||||||||
Carole E. Stone
|
|||||||||||||||||||
For
|
24,256,057
|
—
|
57,239,586
|
—
|
11,926,450
|
—
|
|||||||||||||
Withhold
|
1,003,967
|
—
|
2,343,663
|
—
|
480,255
|
—
|
|||||||||||||
Total
|
25,260,024
|
—
|
59,583,249
|
—
|
12,406,705
|
—
|
|||||||||||||
Virginia L. Stringer
|
|||||||||||||||||||
For
|
24,263,883
|
—
|
27,239,986
|
—
|
11,934,542
|
—
|
|||||||||||||
Withhold
|
996,141
|
—
|
2,343,263
|
—
|
472,163
|
—
|
|||||||||||||
Total
|
25,260,024
|
—
|
29,583,249
|
—
|
12,406,705
|
—
|
|||||||||||||
Terence J. Toth
|
|||||||||||||||||||
For
|
24,274,145
|
—
|
57,263,236
|
—
|
11,961,403
|
—
|
|||||||||||||
Withhold
|
985,879
|
—
|
2,320,013
|
—
|
445,302
|
—
|
|||||||||||||
Total
|
25,260,024
|
—
|
59,583,249
|
—
|
12,406,705
|
—
|
22
|
Nuveen Investments
|
NQI
|
NIO
|
NIF
|
|||||||||||||||||
Common and Preferred shares voting together as a class
|
Preferred shares voting together as a class
|
Common and Preferred shares voting together as a class
|
Preferred shares voting together as a class
|
Common and Preferred shares voting together as a class
|
Preferred shares voting together as a class
|
||||||||||||||
To approve the elimination of the Fund’s fundamental investment policy relating to the Fund’s ability to make loans
|
|||||||||||||||||||
For
|
18,573,701
|
2,404
|
42,589,769
|
6,672
|
9,172,239
|
1,309
|
|||||||||||||
Against
|
1,264,763
|
—
|
2,729,323
|
—
|
538,148
|
—
|
|||||||||||||
Abstain
|
602,861
|
—
|
1,702,986
|
—
|
293,002
|
—
|
|||||||||||||
Broker Non-Votes
|
4,818,699
|
—
|
12,561,171
|
—
|
2,403,316
|
—
|
|||||||||||||
Total
|
25,260,024
|
2,404
|
59,583,249
|
6,672
|
12,406,705
|
1,309
|
|||||||||||||
To approve the new fundamental investment policy relating to the Fund’s ability to make loans
|
|||||||||||||||||||
For
|
18,481,876
|
2,404
|
42,428,526
|
6,672
|
9,125,102
|
1,309
|
|||||||||||||
Against
|
1,335,911
|
—
|
2,877,331
|
—
|
574,773
|
—
|
|||||||||||||
Abstain
|
623,539
|
—
|
1,716,221
|
—
|
303,513
|
—
|
|||||||||||||
Broker Non-Votes
|
4,818,698
|
—
|
12,561,171
|
—
|
2,403,317
|
—
|
|||||||||||||
Total
|
25,260,024
|
2,404
|
59,583,249
|
6,672
|
12,406,705
|
1,309
|
Nuveen Investments
|
23
|
NPX
|
Shareholder Meeting Report (continued)
|
|
NVG
|
||
NEA
|
NPX
|
NVG
|
NEA
|
|||||||||||||||||
Common and Preferred shares voting together as a class
|
Preferred shares voting together as a class
|
Common and Preferred shares voting together as a class
|
Preferred shares voting together as a class
|
Common and Preferred shares voting together as a class
|
Preferred shares voting together as a class
|
||||||||||||||
Approval of the Board Members was reached as follows:
|
|||||||||||||||||||
John P. Amboian
|
|||||||||||||||||||
For
|
23,384,566
|
—
|
25,730,958
|
—
|
19,246,007
|
—
|
|||||||||||||
Withhold
|
1,171,421
|
—
|
1,158,310
|
—
|
1,297,462
|
—
|
|||||||||||||
Total
|
24,555,987
|
—
|
26,889,268
|
—
|
20,543,469
|
—
|
|||||||||||||
Robert P. Bremner
|
|||||||||||||||||||
For
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Withhold
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Total
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Jack B. Evans
|
|||||||||||||||||||
For
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Withhold
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Total
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
William C. Hunter
|
|||||||||||||||||||
For
|
—
|
1,271
|
—
|
6,444,300
|
—
|
4,291,835
|
|||||||||||||
Withhold
|
—
|
919
|
—
|
520,313
|
—
|
539,861
|
|||||||||||||
Total
|
—
|
2,190
|
—
|
6,964,613
|
—
|
4,831,696
|
|||||||||||||
David J. Kundert
|
|||||||||||||||||||
For
|
23,388,374
|
—
|
25,716,479
|
—
|
19,239,208
|
—
|
|||||||||||||
Withhold
|
1,167,613
|
—
|
1,172,789
|
—
|
1,304,261
|
—
|
|||||||||||||
Total
|
24,555,987
|
—
|
26,889,268
|
—
|
20,543,469
|
—
|
|||||||||||||
William J. Schneider
|
|||||||||||||||||||
For
|
—
|
1,271
|
—
|
6,438,300
|
—
|
4,289,535
|
|||||||||||||
Withhold
|
—
|
919
|
—
|
526,313
|
—
|
542,161
|
|||||||||||||
Total
|
—
|
2,190
|
—
|
6,964,613
|
—
|
4,831,696
|
|||||||||||||
Judith M. Stockdale
|
|||||||||||||||||||
For
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Withhold
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Total
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Carole E. Stone
|
|||||||||||||||||||
For
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Withhold
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Total
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Virginia L. Stringer
|
|||||||||||||||||||
For
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Withhold
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Total
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Terence J. Toth
|
|||||||||||||||||||
For
|
23,408,533
|
—
|
25,736,777
|
—
|
19,249,056
|
—
|
|||||||||||||
Withhold
|
1,147,454
|
—
|
1,152,491
|
—
|
1,294,413
|
—
|
|||||||||||||
Total
|
24,555,987
|
—
|
26,889,268
|
—
|
20,543,469
|
—
|
24
|
Nuveen Investments
|
NPX
|
NVG
|
NEA
|
|||||||||||||||||
Common and Preferred shares voting together as a class
|
Preferred shares voting together as a class
|
Common and Preferred shares voting together as a class
|
Preferred shares voting together as a class
|
Common and Preferred shares voting together as a class
|
Preferred shares voting together as a class
|
||||||||||||||
To approve the elimination of the Fund’s fundamental investment policy relating to the Fund’s ability to make loans
|
|||||||||||||||||||
For
|
17,586,653
|
2,190
|
20,007,305
|
4,618,817
|
15,754,452
|
3,806,471
|
|||||||||||||
Against
|
1,226,782
|
—
|
1,274,675
|
515,481
|
1,117,326
|
390,597
|
|||||||||||||
Abstain
|
710,131
|
—
|
763,730
|
185,875
|
639,878
|
52,508
|
|||||||||||||
Broker Non-Votes
|
5,032,421
|
—
|
4,654,043
|
1,409,263
|
3,531,370
|
1,048,925
|
|||||||||||||
Total
|
24,555,987
|
2,190
|
26,699,753
|
6,729,436
|
21,043,026
|
5,298,501
|
|||||||||||||
To approve the new fundamental investment policy relating to the Fund’s ability to make loans
|
|||||||||||||||||||
For
|
17,536,303
|
2,190
|
19,963,407
|
4,607,807
|
15,704,797
|
3,795,132
|
|||||||||||||
Against
|
1,246,319
|
—
|
1,289,720
|
524,514
|
1,147,561
|
394,486
|
|||||||||||||
Abstain
|
740,945
|
—
|
792,583
|
187,852
|
659,298
|
59,958
|
|||||||||||||
Broker Non-Votes
|
5,032,420
|
—
|
4,654,043
|
1,409,263
|
3,531,370
|
1,048,925
|
|||||||||||||
Total
|
24,555,987
|
2,190
|
26,699,753
|
6,729,436
|
21,043,026
|
5,298,501
|
Nuveen Investments
|
25
|
The Board of Directors/Trustees and Shareholders
Nuveen Insured Quality Municipal Fund, Inc.
Nuveen Insured Municipal Opportunity Fund, Inc.
Nuveen Premier Insured Municipal Income Fund, Inc.
Nuveen Insured Premium Income Municipal Fund 2
Nuveen Insured Dividend Advantage Municipal Fund
Nuveen Insured Tax-Free Advantage Municipal Fund
|
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Insured Quality Municipal Fund, Inc., Nuveen Insured Municipal Opportunity Fund, Inc., Nuveen Premier Insured Municipal Income Fund, Inc., Nuveen Insured Premium Income Municipal Fund 2, Nuveen Insured Dividend Advantage Municipal Fund, and Nuveen Insured Tax-Free Advantage Municipal Fund (the “Funds”) as of October 31, 2011, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
|
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2011, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
|
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Insured Quality Municipal Fund, Inc., Nuveen Insured Municipal Opportunity Fund, Inc., Nuveen Premier Insured Municipal Income Fund, Inc., Nuveen Insured Premium Income Municipal Fund 2, Nuveen Insured Dividend Advantage Municipal Fund, and Nuveen Insured Tax-Free Advantage Municipal Fund at October 31, 2011, and the results of their operations and their cash flows for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with U.S. generally accepted accounting principles.
|
Chicago, Illinois |
December 28, 2011 |
26
|
Nuveen Investments
|
|
Nuveen Insured Quality Municipal Fund, Inc.
|
|
NQI
|
Portfolio of Investments
|
Principal
|
Optional Call
|
||||||||
Amount (000)
|
Description (1)
|
Provisions (2)
|
Ratings (3)
|
Value
|
|||||
Alabama – 1.9% (1.3% of Total Investments)
|
|||||||||
$
|
1,135
|
Birmingham Waterworks and Sewerage Board, Alabama, Water and Sewerage Revenue Bonds, Series 2002B, 5.250%, 1/01/20 (Pre-refunded 1/01/13) – NPFG Insured
|
1/13 at 100.00
|
AA+ (4)
|
$
|
1,199,479
|
|||
7,000
|
Huntsville Healthcare Authority, Alabama, Revenue Bonds, Series 2005A, 5.000%, 6/01/24 – NPFG Insured
|
6/15 at 100.00
|
A1
|
7,133,840
|
|||||
Opelika Utilities Board, Alabama, Utility Revenue Bonds, Auburn Water Supply Agreement, Series 2011:
|
|||||||||
1,250
|
4.000%, 6/01/29 – AGM Insured
|
6/21 at 100.00
|
AA+
|
1,221,388
|
|||||
1,000
|
4.250%, 6/01/31 – AGM Insured
|
6/21 at 100.00
|
AA+
|
982,860
|
|||||
10,385
|
Total Alabama
|
10,537,567
|
|||||||