nio.htm
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

Nuveen Insured Municipal Opportunity Fund, Inc.
(Exact name of registrant as specified in charter)

Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Address of principal executive offices) (Zip code)

Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Name and address of agent for service)

Registrant's telephone number, including area code: (312) 917-7700

Date of fiscal year end: October 31

Date of reporting period: April 30, 2011

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.
 

 
 
 
 
 

 
 
INVESTMENT ADVISER NAME CHANGE
 
Effective January 1, 2011, Nuveen Asset Management, the Funds’ investment adviser, changed its name to Nuveen Fund Advisors, Inc. (“Nuveen Fund Advisors”).Concurrently, Nuveen Fund Advisors formed a wholly-owned subsidiary, Nuveen Asset Management, LLC, to house its portfolio management capabilities.
 
NUVEEN INVESTMENTS COMPLETES STRATEGIC COMBINATION WITH FAF ADVISORS
 
On December 31, 2010, Nuveen Investments completed the strategic combination between Nuveen Asset Management, LLC, the largest investment affiliate of Nuveen Investments, and FAF Advisors. As part of this transaction, U.S. Bancorp – the parent of FAF Advisors – received cash consideration and a 9.5% stake in Nuveen Investments in exchange for the long-term investment business of FAF Advisors, including investment management responsibilities for the non-money market mutual funds of the First American Funds family.
 
The approximately $27 billion of mutual fund and institutional assets managed by FAF Advisors, along with the investment professionals managing these assets and other key personnel, have become part of Nuveen Asset Management, LLC. With these additions to Nuveen Asset Management, LLC, this affiliate now manages more than $100 billion of assets across a broad range of strategies from municipal and taxable fixed income to traditional and specialized equity investments.
 
This combination does not affect the investment objectives or strategies of the Funds in this report. Over time, Nuveen Investments expects that the combination will provide even more ways to meet the needs of investors who work with financial advisors and consultants by enhancing the multi-boutique model of Nuveen Investments, which also includes highly respected investment teams at HydePark, NWQ Investment Management, Santa Barbara Asset Management, Symphony Asset Management, Tradewinds Global Investors and Winslow Capital. Nuveen Investments managed approximately $206 billion of assets as of March 31, 2011.
 
 
 

 
Table of Contents
 
Chairman’s Letter to Shareholders
4
   
Portfolio Managers’ Comments
5
   
Common Share Dividend and Share Price Information
12
   
Performance Overviews
14
   
Portfolios of Investments
20
   
Statement of Assets and Liabilities
79
   
Statement of Operations
81
   
Statement of Changes in Net Assets
83
   
Statement of Cash Flows
86
   
Financial Highlights
88
   
Notes to Financial Statements
94
   
Board Approval of Sub-Advisory Arrangements
108
   
Reinvest Automatically, Easily and Conveniently
109
   
Glossary of Terms Used in this Report
111
   
Other Useful Information
115
 
 
 

 
Chairman’s
Letter to Shareholders
 
 
Dear Shareholders,
 
In 2010, the global economy recorded another year of recovery from the financial and economic crises of 2008, but many of the factors that caused the downturn still weigh on the prospects for continued improvement. In the U.S., ongoing weakness in housing values has put pressure on homeowners and mortgage lenders. Similarly, the strong earnings recovery for corporations and banks is only slowly being translated into increased hiring or more active lending. Globally, deleveraging by private and public borrowers has inhibited economic growth and that process is far from complete.
 
Encouragingly, constructive actions are being taken by governments around the world to deal with economic issues. In the U.S., the recent passage of a stimulatory tax bill relieved some of the pressure on the Federal Reserve to promote economic expansion through quantitative easing and offers the promise of sustained economic growth. A number of European governments are undertaking programs that could significantly reduce their budget deficits. Governments across the emerging markets are implementing various steps to deal with global capital flows without undermining international trade and investment.
 
The success of these government actions could determine whether 2011 brings further economic recovery and financial market progress. One risk associated with the extraordinary efforts to strengthen U.S. economic growth is that the debt of the U.S. government will continue to grow to unprecedented levels. Another risk is that over time there could be inflationary pressures on asset values in the U.S. and abroad, because what happens in the U.S. impacts the rest of the world economy. Also, these various actions are being taken in a setting of heightened global economic uncertainty, primarily about the supplies of energy and other critical commodities. In this challenging environment, your Nuveen investment team continues to seek sustainable investment opportunities and to remain alert to potential risks in a recovery still facing many headwinds. On your behalf, we monitor their activities to assure they maintain their investment disciplines.
 
As you will note elsewhere in this report, on December 31, 2010, Nuveen Investments completed a strategic combination with FAF Advisors, Inc., the manager of the First American Funds. The combination adds highly respected and distinct investment teams to meet the needs of investors and their advisors and is designed to benefit all fund shareholders by creating a fund organization with the potential for further economies of scale and the ability to draw from even greater talent and expertise to meet those investor needs.
 
As of the end of June 2011, Nuveen Investments had completed the refinancing of all of the Auction Rate Preferred Securities issued by its taxable closed-end funds and 91% of the MuniPreferred shares issued by its tax-exempt closed-end funds. Please consult the Nuveen Investments web site, www.Nuveen.com, for the current status of this important refinancing program.
 
As always, I encourage you to contact your financial consultant if you have any questions about your investment in a Nuveen Fund. On behalf of the other members of your Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
 
Sincerely,
 
 
Robert P. Bremner
Chairman of the Board
June 21, 2011
 
  Nuveen Investments 

 
 

 
Portfolio Managers’ Comments
 
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)
 
Portfolio managers Paul Brennan and Douglas White review key investment strategies and the six-month performance of these six national insured Funds. With 20 years of industry experience, including 14 years at Nuveen, Paul has managed NIO, NIF, NVG and NEA since 2006. Douglas, who has 28 years of financial industry experience, assumed portfolio management responsibility for NQI and NPX from Paul in January 2011.
 
What key strategies were used to manage these Funds during the six-month reporting period ended April 30, 2011?
 
After rallying through most of 2010, municipal bond prices declined during this six-month period, impacted by investor concerns about inflation, the federal deficit and the deficit’s impact on demand for U.S. Treasury securities. Adding to this market pressure was media coverage of the strained finances of many state and local governments. As a result, money began to flow out of municipal bond funds, as yields rose and valuations declined. Toward the end of this period, we saw the environment in the municipal market improve, as some buyers were attracted by municipal bond valuations and yields, resulting in declining yields and rising valuations.
 
The municipal bond market also was affected by a significant decline in new tax-exempt issuance during this period. One reason for this decrease was the heavy issuance of taxable municipal debt at the end of 2010 under the Build America Bond (BAB) program. During November and December 2010, taxable BABs issuance nationwide totaled $31.5 billion, accounting for 34.5% of new bonds in the municipal market. Since interest payments from BABs represent taxable income, we did not view these bonds as appropriate investment opportunities for these Funds. The BAB program expired December 31, 2010, after Congress failed to include legislation extending the program in the tax bill it passed earlier that month. In addition to the BAB program’s impact on tax-exempt issuance during the November-December period, borrowers trying to take advantage of the program’s favorable terms before its termination at year end accelerated issuance that potentially would have come to market as tax-exempt bonds in 2011, choosing instead to issue taxable BABs during the last two months of 2010. Due in part to this, national municipal issuance was down 49% for the first four months of 2011 compared with the same period in 2010. The tight supply situation was further compounded for
 
Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
 
Any reference to credit ratings for portfolio holdings denotes the highest rating assigned by a Nationally Recognized Statistical Rating Organization (NRSRO) such as Standard & Poor’s (S&P), Moody’s or Fitch. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below investment grade. Holdings and ratings may change over time.
 
 Nuveen Investments   5

 
 

 
these Funds by the continued decline in issuance of AAA rated insured bonds. Over the six-month period, new insured paper accounted for approximately 6% to 10% of national issuance, compared with recent historical levels of approximately 50%.
 
In this environment of constrained tax-exempt municipal bond issuance, our primary focus was on value, quality and maturity. Due to changes to their investment policies in May 2010, these six Funds may now invest up to 20% of their managed assets in uninsured investment-grade credits rated BBB- or higher. Although we did purchase high-quality uninsured bonds during this period, with an emphasis on credits carrying strong AA ratings, we also found attractive opportunities to buy insured bonds despite the limit of insured supply. The Funds also focused on purchasing longer bonds in order to take advantage of attractive yields at the longer end of the municipal yield curve. In addition, the purchase of longer bonds provided protection for the Funds’ duration and yield curve positioning.
 
We continued to take a bottom-up approach to discovering undervalued sectors and individual credits with the potential to perform well over the long term. During this period, we found value in essential services sectors such as health care, transportation (specifically toll roads and airports), school districts, and general obligation and other tax-supported bonds issued by state and local governments for infrastructure projects. The Funds also purchased higher education credits, including those issued for higher quality private universities such as Cornell. During the last months of 2010, some of this investment activity resulted from opportunities created by the provisions of the BAB program. For example, tax-exempt supply was more plentiful in the health care and higher education sectors because, as 501(c)(3) (nonprofit) organizations, hospitals and private universities generally did not qualify for the BAB program and continued to issue bonds in the tax-exempt municipal market. In addition, bonds with proceeds earmarked for refundings, working capital and private activities were not covered by the BAB program, and this resulted in attractive opportunities in other sectors of the market, such as airports.
 
Cash for new purchases during this period was generated primarily by the proceeds from bond calls and maturing bonds, which we worked to redeploy to keep the Funds as fully invested as possible. In addition, due to extremely low short-term interest rates, NQI and NPX liquidated all of their positions in short-term floating rate securities and reinvested the proceeds in areas of the market that we believed offered better opportunities, primarily health care and higher education bonds with longer maturities.
 
As of April 30, 2011, all six of these Funds continued to use inverse floating rate securities. We employ inverse floaters as a form of leverage for a variety of reasons, including duration management, income enhancement and total return enhancement.
 
  Nuveen Investments 

 
 

 
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.
 
Average Annual Total Returns on Common Share Net Asset Value*
For periods ended 4/30/11
 
Fund
 
6-Month
 
1-Year
 
5-Year
 
10-Year
NQI
    -4.66 %     -0.01 %     2.95 %     4.93 %
NIO
    -4.72 %     0.56 %     3.45 %     5.17 %
NIF
    -4.52 %     0.70 %     3.75 %     5.20 %
NPX
    -4.37 %     0.69 %     3.34 %     5.01 %
NVG
    -2.89 %     1.43 %     4.29 %     N/A
NEA
    -3.36 %     1.34 %     4.65 %     N/A
                                 
Standard & Poor’s (S&P) National Insured Municipal Bond Index1
    -2.32 %     1.73 %     4.12 %     5.00 %
Lipper Insured Municipal Debt Funds Average2
    -4.30 %     0.85 %     3.57 %     5.06 %
 
For the six months ended April 30, 2011, the cumulative returns on common share net asset value (NAV) for these six Funds underperformed the return for the Standard & Poor’s (S&P) National Insured Municipal Bond Index. For the same period, NVG and NEA exceeded the average return for the Lipper Insured Municipal Debt Funds Average, NPX performed in line with this benchmark, and NQI, NIO and NIF trailed the Lipper average.
 
Key management factors that influenced the Funds’ returns during this period included duration and yield curve positioning, credit exposure and sector allocation. In addition, our liquidation of NQI and NPX’s positions in floating rate securities benefited these two Funds through our reinvestment of these proceeds in higher yielding bonds. The use of leverage also had an impact on the Funds’ performance. Leverage is discussed in more detail on page eight.
 
During this period, municipal bonds with shorter maturities generally outperformed other maturity categories, with credits at the longest end of the yield curve posting the weakest returns. The underperformance of longer bonds was due in part to the rise in municipal yields at the longer end of the curve. Among these six Funds, NVG and NEA were the most advantageously situated in terms of duration and yield curve positioning, with more exposure to the outperforming shorter end of the yield curve. The other four Funds had longer durations, and their greater exposure to the underperforming long part of the curve detracted from their performance for this period. Overall, variations in duration and yield curve positioning among the Funds accounted for the majority of the differences in performance.
 
Credit exposure also played an important role in performance. During the market reversal of late 2010, as the redemption activity in municipal bond funds and, especially, high-yield funds increased, lower-rated credits were negatively impacted. For the period as a whole, bonds rated BBB generally underperformed those rated AAA. As insured Funds, all of these Funds had large weightings in the insured and higher credit quality sectors, with NVG having the greatest exposure to AAA rated bonds and NQI having the smallest AAA exposure as of April 30, 2011.
 
*
Six-month returns are cumulative; all other returns 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.
   
1
The Standard & Poor’s (S&P) National Insured Municipal Bond Index is an unleveraged, market value-weighted index designed to measure the performance of the tax-exempt insured U.S. municipal bond market. This index does not reflect any initial or ongoing expenses and is not available for direct investment.
   
2
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-month, 10 funds; 1-year, 10 funds; 5-year, 10 funds; and 10-year, 8 funds. Lipper returns account for the effects of management fees and assume reinvestment of dividends, but do not reflect any applicable sales charges. The Lipper average is not available for direct investment.
 
 Nuveen Investments   7

 
 

 
Holdings that generally helped the Funds’ returns included housing, resource recovery, and general obligation and other tax-supported bonds. In general, these Funds had relatively light exposures to housing, which limited their participation in the performance of this sector. During this period, pre-refunded bonds, which are often backed by U.S. Treasury securities, also were among the strongest performers, primarily due to their shorter effective maturities and higher credit quality. As of April 30, 2011, NVG and NEA had the largest exposures to pre-refunded bonds, while NQI and NPX had the smallest allocations. In contrast, the industrial development revenue, health care and transportation sectors turned in relatively weaker performance. NEA and NQI, in particular, had heavier weightings in the health care sector, which hampered their performance.
 
IMPACT OF THE FUNDS’ LEVERAGE STRATEGIES ON PERFORMANCE
 
One important factor impacting the returns of all these Funds relative to the comparative indexes was the Funds’ use of leverage. The Funds use leverage because their managers believe that, over time, leveraging provides opportunities for additional income and total return for common shareholders. However, use of leverage also can expose common shareholders to additional volatility. For example, as the prices of securities held by a Fund decline, the negative impact of these valuation changes on common share net asset value and common shareholder total return is magnified by the use of leverage. This is what happened in these Funds during the period, as the use of structural leverage hurt their overall performance.
 
RECENT DEVELOPMENTS REGARDING THE FUNDS’ REDEMPTION OF AUCTION RATE PREFERRED SHARES
 
Shortly after their respective inceptions, each of the Funds issued auction rate preferred shares (ARPS) to create structural leverage. As noted in past shareholder reports, the ARPS issued by many closed-end funds, including these Funds, have been hampered by a lack of liquidity since February 2008. Since that time, more ARPS have been submitted for sale in each of their regularly scheduled auctions than there have been offers to buy. In fact, offers to buy have been almost completely nonexistent since late February 2008. This means that these auctions have “failed to clear,” and that many, or all, of the ARPS shareholders who wanted to sell their shares in these auctions were unable to do so. This lack of liquidity in ARPS did not lower the credit quality of these shares, and ARPS shareholders unable to sell their shares continued to receive distributions at the “maximum rate” applicable to failed auctions, as calculated in accordance with the pre-established terms of the ARPS. In the recent market, with short term rates at multi-generational lows, those maximum rates also have been low.
 
One continuing implication for common shareholders from the auction failures is that each Fund’s cost of leverage likely has been incrementally higher at times than it otherwise might have been had the auctions continued to be successful. As a result, each Fund’s common share earnings likely have been incrementally lower at times than they otherwise might have been.
 
As noted in past shareholder reports, the Nuveen funds’ Board of Directors/Trustees authorized several methods that can be used separately or in combination to refinance
 
  Nuveen Investments 

 
 

 
a portion of the Nuveen funds’ outstanding ARPS. Some funds have utilized tender option bonds (TOBs), also known as inverse floating rate securities, for leverage purposes. The amount of TOBs that a fund may use varies according to the composition of each fund’s portfolio. Some funds have a greater ability to use TOBs than others. Some funds have issued Variable Rate Demand Preferred (VRDP) Shares or Variable MuniFund Term Preferred (VMTP) Shares, which are a floating rate form of preferred stock with a mandatory term redemption. Some funds have issued MuniFund Term Preferred (MTP) Shares, a fixed rate form of preferred stock with a mandatory redemption period of three to five years.
 
While all these efforts have reduced the total amount of outstanding ARPS issued by the Nuveen funds, the funds cannot provide any assurance on when the remaining outstanding ARPS might be redeemed.
 
During 2010 and 2011, certain Nuveen leveraged closed-end funds (including NQI, NIO, NIF, NVG and NEA) received a demand letter from a law firm on behalf of purported holders of common shares of each such fund, alleging that Nuveen and the funds’ officers and Board of Directors/Trustees breached their fiduciary duties related to the redemption at par of the funds’ ARPS. In response, the Board established an ad hoc Demand Committee consisting of certain of its disinterested and independent Board members to investigate the claims. The Demand Committee retained independent counsel to assist it in conducting an extensive investigation. Based upon its investigation, the Demand Committee found that it was not in the best interests of each fund or its shareholders to take the actions suggested in the demand letters, and recommended that the full Board reject the demands made in the demand letters. After reviewing the findings and recommendation of the Demand Committee, the full Board of each fund unanimously adopted the Demand Committee’s recommendation.
 
Subsequently, the funds that received demand letters (including NQI, NIF, NVG and NEA) were named in a consolidated complaint as nominal defendants in a putative shareholder derivative action captioned Martin Safier, et al. v. Nuveen Asset Management, et al. that was filed in the Circuit Court of Cook County, Illinois, Chancery Division (the “Cook County Chancery Court”) on February 18, 2011 (the “Complaint”). The Complaint, filed on behalf of purported holders of each fund’s common shares, also name Nuveen Fund Advisors, Inc. as a defendant, together with current and former Officers and interested Director/Trustees of each of the funds (together with the nominal defendants, collectively, the “Defendants”). The Complaint contains the same basic allegations contained in the demand letters. The suits seek a declaration that the Defendants have breached their fiduciary duties, an order directing the Defendants not to redeem any ARPS at their liquidation value using fund assets, indeterminate monetary damages in favor of the funds and an award of plaintiffs’ costs and disbursements in pursuing the action. Nuveen Fund Advisors, Inc. believes that the Complaint is without merit, and is defending vigorously against these charges.
 
 Nuveen Investments   9

 
 

 
As of April 30, 2011, the amount of ARPS redeemed at par by the Funds is as shows in the accompanying table.
 
Fund
 
ARPS
Redeemed
   
% of 
Original ARPS
NQI
  $ 318,000,000       100.0 %
NIO
  $ 791,000,000       100.0 %
NIF
  $ 161,000,000       100.0 %
NPX
  $ 268,900,000       100.0 %
NVG
  $ 141,050,000       60.5 %
NEA
  $ 105,625,000       61.1 %
 
MTP Shares
 
As of April 30, 2011, and as noted in a previous shareholder report, the following Funds have issued and outstanding MTP Shares, at liquidation value, as shown in the accompanying table.
 
Fund
 
MTP Shares at 
Liquidation Value
 
NVG
  $ 108,000,000  
NEA
  $ 83,000,000  
 
VMTP Shares
 
During the current reporting period, the following Fund completed the issuance of VMTP Shares as shown in the accompanying table. The net proceeds from this offerings was used to refinance the Fund’s remaining outstanding ARPS at par.
 
Fund
VMTP Series
 
VMTP Shares Issued at Liquidation Value
 
NQI
2014
  $ 240,400,000  
 
As noted previously, VMTP is a newly-developed instrument that essentially replaces all or a portion of the ARPS used as leverage and potentially could be used to refinance all or a portion of the ARPS of other funds. VMTP is offered only to qualified institutional buyers, defined pursuant to Rule 144A under the Securities Act of 1933.
 
VRDP Shares
 
As of April 30, 2011, the following Funds have issued and outstanding VRDP Shares, at liquidation value, as shown in the accompanying table.
 
Fund
 
VRDP Shares at Liquidation Value
 
NIO
  $ 667,000,000  
NIF
  $ 130,900,000  
NPX
  $ 219,000,000  
 
During the current reporting period, the following Funds completed the issuance of VRDP Shares as shown in the accompanying table. The net proceeds from these offerings were used to refinance the Funds’ remaining outstanding ARPS at par. These VRDP Shares are included in the total amount of VRDP Shares outstanding in the preceding table.
 
10    Nuveen Investments 

 
 

 
Fund
 
VRDP Shares Issued at Liquidation Value
 
NIO
  $ 667,000,000  
NIF
  $ 130,900,000  
 
(Refer to Notes to Financial Statements, Footnote 1 – General Information and Significant Accounting Policies and Footnote 4 – Fund Shares for further details on MTP, VMTP and VRDP Shares.)
 
At the time this report was prepared, all 84 of the Nuveen closed-end municipal funds that had issued ARPS have redeemed at par all or a portion of these shares. These redemptions bring the total amount of Nuveen’s municipal closed-end funds’ ARPS redemptions to approximately $10.0 billion of the approximately $11.0 billion originally outstanding.
 
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at: http://www.nuveen.com/arps.
 
Regulatory Matters
 
During May 2011, Nuveen Securities, LLC entered into a settlement with the Financial Industry Regulatory Authority (FINRA) with respect to certain allegations regarding Nuveen-sponsored closed-end fund ARPS marketing brochures. As part of this settlement, Nuveen Securities, LLC neither admitted to nor denied FINRA’s allegations. Nuveen is the broker-dealer subsidiary of Nuveen Investments.
 
The settlement with FINRA concludes an investigation that followed the widespread failure of auctions for ARPS and other auction rate securities, which generally began in mid-February 2008. In the settlement, FINRA alleged that certain marketing materials provided by Nuveen Securities, LLC were false and misleading. Nuveen Securities, LLC agreed to a censure and the payment of a $3 million fine.
 
 Nuveen Investments   11

 
 

 
Common Share Dividend and
Share Price Information
 
The monthly dividends of all six Funds in this report remained stable throughout the six-month reporting period ended April 30, 2011.
 
Due to normal portfolio activity, common shareholders of the following Funds received capital gains and/or net ordinary income distributions in December 2010 as follows:
 
Fund
 
Long-Term Capital Gains
(per share)
   
Short-Term Capital Gains and/or Ordinary Income (per share)
 
NIO
        $ 0.0044  
NVG
  $ 0.0029        
 
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 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 NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of April 30, 2011, all six of the Funds in this report had positive UNII balances, based upon our best estimate, for tax purposes and positive UNII balances for financial reporting purposes.
 
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
 
As of April 30, 2011, and since the inception of the Funds’ repurchase program, the Funds have cumulatively repurchased and retired their common shares as shown in the accompanying table. Since the inception of the Funds’ repurchase program, NQI, NIF, and NPX have not repurchased any of their outstanding common shares.
 
Fund
 
Common Shares Repurchased and Retired
   
% of Outstanding Common Shares
 
NQI
          %
NIO
    2,900       0.0 %
NIF
          %
NPX
          %
NVG
    10,400       0.0 %
NEA
    19,300       0.1 %
 
During the six-month reporting period, the Funds did not repurchase any of their outstanding common shares.
 
12    Nuveen Investments 

 
 

 
As of April 30, 2011, and during the six-month reporting period, the Funds’ common share prices were trading at (+) premiums or (-)discounts to their common share NAVs as shown in the accompanying table.
 
Fund
 
4/30/11
(+)Premium/(-)Discount
   
Six-Month Average
(-)Discount
 
NQI
    (-)2.58 %     (-)3.19 %
NIO
    (-)4.28 %     (-)2.52 %
NIF
    (+)5.69 %     (-)1.04 %
NPX
    (-)6.53 %     (-)5.26 %
NVG
    (-)5.58 %     (-)5.38 %
NEA
    (-)5.90 %     (-)4.81 %
 
 Nuveen Investments   13

 
 

 
NQI
 
Nuveen Insured
Performance
 
Quality Municipal
OVERVIEW
 
Fund, Inc.
   
as of April 30, 2011
 
 
Fund Snapshot
       
Common Share Price
 
$
12.82
 
Common Share Net Asset Value (NAV)
 
$
13.16
 
Premium/(Discount) to NAV
   
-2.58
%
Market Yield
   
6.65
%
Taxable-Equivalent Yield2
   
9.24
%
Net Assets Applicable to Common Shares ($000)
 
$
505,535
 
 
Leverage
(as a % of total Managed Assets)
       
Structural Leverage
   
30.55
%
Effective Leverage
   
44.75
%

Average Annual Total Return
(Inception 12/19/90)
               
      On Share Price     On NAV
6-Month (Cumulative)
    -7.95 %     -4.66 %
1-Year
    -3.82 %     -0.01 %
5-Year
    3.30 %     2.95 %
10-Year
    4.99 %     4.93 %

States5
(as a % of total investments)
       
California
   
17.5
%
Texas
   
10.9
%
New York
   
7.7
%
Washington
   
7.5
%
Illinois
   
7.5
%
Florida
   
6.5
%
Kentucky
   
4.0
%
Pennsylvania
   
4.0
%
Arizona
   
3.5
%
Massachusetts
   
3.0
%
New Jersey
   
2.5
%
Louisiana
   
2.4
%
Colorado
   
2.4
%
Ohio
   
2.3
%
Other
   
18.3
%
 
Portfolio Composition5
(as a % of total investments)
       
Tax Obligation/Limited
   
23.2
%
Transportation
   
18.7
%
U.S. Guaranteed
   
14.4
%
Tax Obligation/General
   
13.0
%
Health Care
   
9.3
%
Water and Sewer
   
7.1
%
Utilities
   
5.2
%
Other
   
9.1
%
 
Insurers5
(as a % of total Insured investments)
       
NPFG3
   
30.3
%
AGM
   
24.2
%
FGIC
   
21.0
%
AMBAC
   
20.6
%
Other
   
3.9
%
 
 
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 2 – General Information and Significant Accounting Policies, Insurance for more information. At the end of the reporting period, 92% 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 of Standard & Poor’s Group, Moody’s Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
5
Holdings are subject to change.
 
14    Nuveen Investments 

 
 

 
NIO
 
Nuveen Insured
Performance
 
Municipal Opportunity
OVERVIEW
 
Fund, Inc.
   
as of April 30, 2011
 
 
Fund Snapshot
       
Common Share Price
 
$
13.18
 
Common Share Net Asset Value (NAV)
 
$
13.77
 
Premium/(Discount) to NAV
   
-4.28
%
Market Yield
   
6.56
%
Taxable-Equivalent Yield2
   
9.11
%
Net Assets Applicable to Common Shares ($000)
 
$
1,316,511
 
 
Leverage
(as a % of total Managed Assets)
       
Structural Leverage
   
31.97
%
Effective Leverage
   
41.58
%

Average Annual Total Return
(Inception 9/19/91)
           
   
On Share Price
 
On NAV
6-Month (Cumulative)
    -8.18 %     -4.72 %
1-Year
    0.37 %     0.56 %
5-Year
    3.74 %     3.45 %
10-Year
    5.49 %     5.17 %

States5
(as a % of total investments)
       
Florida
   
16.7
%
California
   
16.0
%
Texas
   
6.0
%
New York
   
5.0
%
Illinois
   
4.5
%
Nevada
   
4.4
%
South Carolina
   
3.6
%
Massachusetts
   
3.5
%
Pennsylvania
   
3.3
%
Louisiana
   
3.0
%
Washington
   
2.9
%
Indiana
   
2.8
%
New Jersey
   
2.8
%
Ohio
   
2.5
%
Colorado
   
2.1
%
Kentucky
   
2.0
%
Other
   
18.9
%
 
Portfolio Composition5
(as a % of total investments)
       
Tax Obligation/Limited
   
25.8
%
U.S. Guaranteed
   
16.8
%
Transportation
   
14.2
%
Tax Obligation/General
   
12.4
%
Water and Sewer
   
12.1
%
Utilities
   
7.8
%
Other
   
10.9
%
 
Insurers5
(as a % of total Insured investments)
       
NPFG3
   
29.5
%
AGM
   
22.3
%
FGIC
   
21.0
%
AMBAC
   
17.3
%
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, 94% 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 of Standard & Poor’s Group, Moody’s Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
5
Holdings are subject to change.
6
Rounds to less than 1%.
7
The Fund paid shareholders an ordinary income distribution in December 2010 of $0.0044.
 
 Nuveen Investments   15

 
 

 
NIF
 
Nuveen Premier
Performance
 
Insured Municipal
OVERVIEW
 
Income Fund, Inc.
   
as of April 30, 2011
 
 
         
Fund Snapshot
       
Common Share Price
 
$
14.67
 
Common Share Net Asset Value (NAV)
 
$
13.88
 
Premium/(Discount) to NAV
   
5.69
%
Market Yield
   
6.05
%
Taxable-Equivalent Yield2
   
8.40
%
Net Assets Applicable to Common Shares ($000)
 
$
270,117
 
 
Leverage
(as a % of total Managed Assets)
       
Structural Leverage
   
30.82
%
Effective Leverage
   
43.24
%

Average Annual Total Return
(Inception 12/19/91)
           
   
On Share Price
 
On NAV
6-Month (Cumulative)
    -2.26 %     -4.52 %
1-Year
    6.45 %     0.70 %
5-Year
    6.02 %     3.75 %
10-Year
    6.24 %     5.20 %

States5
(as a % of total investments)
       
California
   
16.5
%
Washington
   
10.4
%
Illinois
   
9.5
%
Texas
   
8.8
%
Colorado
   
4.8
%
Pennsylvania
   
4.8
%
New York
   
4.5
%
Nevada
   
4.0
%
Florida
   
3.9
%
Massachusetts
   
3.0
%
Oregon
   
2.8
%
Indiana
   
2.8
%
Arizona
   
2.6
%
North Carolina
   
1.9
%
Other
   
19.7
%
 
Portfolio Composition5
(as a % of total investments)
       
U.S. Guaranteed
   
24.4
%
Tax Obligation/Limited
   
17.1
%
Transportation
   
16.7
%
Tax Obligation/General
   
14.9
%
Water and Sewer
   
8.9
%
Health Care
   
6.9
%
Utilities
   
6.6
%
Other
   
4.5
%
 
Insurers5
(as a % of total Insured investments)
       
NPFG3
   
32.3
%
AGM
   
27.1
%
FGIC
   
23.0
%
AMBAC
   
14.2
%
Other
   
3.4
%
 
 
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, 86% 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 of Standard & Poor’s Group, Moody’s Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
5
Holdings are subject to change.
 
16    Nuveen Investments 

 
 

 
NPX
 
Nuveen Insured
Performance
 
Premium Income
OVERVIEW
 
Municipal Fund 2
   
as of April 30, 2011
 
 
Fund Snapshot
       
Common Share Price
 
$
11.74
 
Common Share Net Asset Value (NAV)
 
$
12.56
 
Premium/(Discount) to NAV
   
-6.53
%
Market Yield
   
6.34
%
Taxable-Equivalent Yield2
   
8.81
%
Net Assets Applicable to Common Shares ($000)
 
$
468,982
 
 
Leverage
(as a % of total Managed Assets)
       
Structural Leverage
   
29.80
%
Effective Leverage
   
40.35
%

Average Annual Total Return
(Inception 7/22/93)
           
   
On Share Price
 
On NAV
6-Month (Cumulative)
    -9.61 %     -4.37 %
1-Year
    -1.67 %     0.69 %
5-Year
    4.13 %     3.34 %
10-Year
    5.01 %     5.01 %

States5
(as a % of total investments)
       
California
   
15.1
%
Texas
   
7.6
%
Colorado
   
6.6
%
New York
   
6.6
%
New Jersey
   
6.1
%
Pennsylvania
   
6.1
%
Washington
   
4.7
%
Louisiana
   
4.0
%
Illinois
   
3.9
%
Florida
   
3.7
%
Georgia
   
3.4
%
Arizona
   
3.3
%
Hawaii
   
3.1
%
Indiana
   
3.1
%
Massachusetts
   
2.5
%
Alabama
   
2.4
%
Other
   
17.8
%
 
Portfolio Composition5
(as a % of total investments)
       
Tax Obligation/Limited
   
20.2
%
Utilities
   
16.2
%
Transportation
   
12.5
%
U.S. Guaranteed
   
11.6
%
Water and Sewer
   
11.2
%
Tax Obligation/General
   
10.6
%
Education and Civic Organizations
   
9.3
%
Health Care
   
6.7
%
Other
   
1.7
%
 
Insurers5
(as a % of total Insured investments)
       
AGM
   
27.5
%
AMBAC
   
24.5
%
NPFG3
   
24.3
%
FGIC
   
15.7
%
Other
   
8.0
%
 
 
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, 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 of Standard & Poor’s Group, Moody’s Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
5
Holdings are subject to change.
6
Rounds to less than 1%.
 
 Nuveen Investments   17

 
 

 
NVG
 
Nuveen Insured
Performance
 
Dividend Advantage
OVERVIEW
 
Municipal Fund
   
as of April 30, 2011
 
 
Fund Snapshot
       
Common Share Price
 
$
13.53
 
Common Share Net Asset Value (NAV)
 
$
14.33
 
Premium/(Discount) to NAV
   
-5.58
%
Market Yield
   
6.21
%
Taxable-Equivalent Yield2
   
8.63
%
Net Assets Applicable to Common Shares ($000)
 
$
427,189
 
 
Leverage
(as a % of total Managed Assets)
       
Structural Leverage
   
30.20
%
Effectve Leverage
   
40.50
%

Average Annual Total Return
(Inception 3/25/02)
           
   
On Share Price
 
On NAV
6-Month (Cumulative)
    -5.70 %     -2.89 %
1-Year
    -1.20 %     1.43 %
5-Year
    3.51 %     4.29 %
Since Inception
    5.01 %     5.86 %

States6
(as a % of total municipal bonds)
       
Texas
   
16.1
%
Washington
   
10.5
%
Indiana
   
9.6
%
California
   
8.5
%
Florida
   
8.0
%
Illinois
   
7.8
%
Tennessee
   
6.6
%
New York
   
3.9
%
Colorado
   
3.7
%
Pennsylvania
   
3.2
%
Louisiana
   
2.8
%
Other
   
19.3
%
 
Portfolio Composition6
(as a % of total investments)
       
U.S. Guaranteed
   
25.2
%
Tax Obligation/Limited
   
17.3
%
Transportation
   
17.0
%
Health Care
   
8.8
%
Utilities
   
8.6
%
Tax Obligation/General
   
7.8
%
Water and Sewer
   
5.5
%
Education and Civic Organizations
   
5.0
%
Other
   
4.8
%
 
Insurers6
(as a % of total Insured investments)
       
NPFG4
   
30.7
%
AMBAC
   
25.2
%
AGM
   
24.8
%
FGIC
   
15.8
%
Other
   
3.5
%
 
 
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
The Fund paid shareholders a capital gains distribution in December 2010 of $0.0029 per share.
4   MBIA’s public finance subsidiary.
5
Ratings shown are the highest of Standard & Poor’s Group, Moody’s Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
6
Holdings are subject to change.
 
18    Nuveen Investments 

 
 

 
NEA
 
Nuveen Insured
Performance
 
Tax-Free Advantage
OVERVIEW
 
Municipal Fund
   
as of April 30, 2011
 
 
Fund Snapshot
       
Common Share Price
 
$
13.23
 
Common Share Net Asset Value (NAV)
 
$
14.06
 
Premium/(Discount) to NAV
   
-5.90
%
Market Yield
   
6.17
%
Taxable-Equivalent Yield2
   
8.57
%
Net Assets Applicable to Common Shares ($000)
 
$
312,784
 
 
Leverage
(as a % of total Managed Assets)
       
Structural Leverage
   
30.85
%
Effective Leverage
   
40.91
%

Average Annual Total Return
(Inception 11/21/02)
           
   
On Share Price
 
On NAV
6-Month (Cumulative)
    -8.75 %     -3.36 %
1-Year
    -3.46 %     1.34 %
5-Year
    4.84 %     4.65 %
Since Inception
    4.20 %     5.34 %

States6
(as a % of total investments)
       
Florida
   
15.8
%
California
   
14.0
%
New York
   
6.7
%
Michigan
   
6.5
%
Washington
   
6.5
%
Texas
   
5.5
%
Pennsylvania
   
5.2
%
Indiana
   
4.9
%
Alabama
   
4.8
%
South Carolina
   
3.8
%
Wisconsin
   
3.7
%
Arizona
   
3.5
%
Other
   
19.1
%
 
Portfolio Composition6
(as a % of total investments)
       
Tax Obligation/Limited
   
27.4
%
U.S. Guaranteed
   
27.0
%
Health Care
   
10.2
%
Water and Sewer
   
8.7
%
Transportation
   
8.2
%
Utilities
   
8.2
%
Tax Obligation/General
   
6.4
%
Other
   
3.9
%
 
Insurers6
(as a % of total Insured investments)
       
NPFG4
   
32.0
%
AMBAC
   
26.5
%
AGM
   
22.2
%
FGIC
   
10.6
%
Other
   
8.7
%
 
 
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, 89% 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
The Fund paid shareholders a net ordinary income distribution in December 2010 of $0.0044.
4 MBIA’s public finance subsidiary.
5
Ratings shown are the highest of Standard & Poor’s Group, Moody’s Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies.
6
Holdings are subject to change.
 
 Nuveen Investments   19

 
 

 
   
Nuveen Insured Quality Municipal Fund, Inc.
NQI
 
Portfolio of Investments
April 30, 2011 (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 Sewerage Revenue Bonds, Series 2002B, 5.250%, 1/01/20 (Pre-refunded 1/01/13) – NPFG Insured
1/13 at 100.00
AAA
$
1,223,768
 
 
7,000
 
Huntsville Healthcare Authority, Alabama, Revenue Bonds, Series 2005A, 5.000%, 6/01/24 – NPFG Insured
6/15 at 100.00
A1
 
7,004,550
 
 
8,135
 
Total Alabama
     
8,228,318
 
     
Arizona – 5.5% (3.5% of Total Investments)
         
     
Arizona State, Certificates of Participation, Series 2010A:
         
 
1,200
 
5.250%, 10/01/28 – AGM Insured
10/19 at 100.00
AA+
 
1,234,908
 
 
1,500
 
5.000%, 10/01/29 – AGM Insured
10/19 at 100.00
AA+
 
1,509,675
 
 
7,065
 
Arizona State, State Lottery Revenue Bonds, Series 2010A, 5.000%,
1/20 at 100.00
AA+
 
7,089,162
 
         7/01/29 – AGC Insured          
 
2,750
 
Mesa, Arizona, Utility System Revenue Bonds, Reset Option Longs, Series 11033, 14.835%, 7/01/26 – AGM Insured (IF)
7/17 at 100.00
AA+
 
1,605,450
 
 
9,200
 
Phoenix Civic Improvement Corporation, Arizona, Senior Lien Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 – FGIC Insured (Alternative Minimum Tax)
7/12 at 100.00
AA–
 
8,874,688
 
 
8,755
 
Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic Plaza, Series 2005B, 0.000%, 7/01/39 – FGIC Insured
No Opt. Call
AA
 
7,408,569
 
 
30,470
 
Total Arizona
     
27,722,452
 
     
Arkansas – 0.5% (0.3% of Total Investments)
         
 
2,250
 
University of Arkansas, Fayetteville, Revenue Bonds, Medical Sciences Campus, Series 2004B, 5.000%, 11/01/24 – NPFG Insured
11/14 at 100.00
Aa2
 
2,372,220
 
     
California – 27.4% (17.5% of Total Investments)
         
     
California Department of Water Resources, Water System Revenue Bonds, Central Valley Project, Series 2005AC:
         
 
4,010
 
5.000%, 12/01/24 – NPFG Insured (UB)
12/14 at 100.00
AAA
 
4,313,557
 
 
3,965
 
5.000%, 12/01/26 – NPFG Insured (UB)
12/14 at 100.00
AAA
 
4,224,192
 
 
13,445
 
California State, General Obligation Bonds, Series 2002, 5.000%, 4/01/27 – AMBAC Insured
4/12 at 100.00
A1
 
13,467,857
 
 
7,055
 
California State, General Obligation Bonds, Series 2002, 5.000%, 4/01/27 (Pre-refunded 4/01/12) – AMBAC Insured
4/12 at 100.00
AAA
 
7,361,116
 
 
5
 
California State, General Obligation Bonds, Series 2004, 5.000%, 4/01/31 – AMBAC Insured
4/14 at 100.00
A1
 
4,916
 
 
3,745
 
California State, General Obligation Bonds, Series 2004, 5.000%, 4/01/31 (Pre-refunded 4/01/14) – AMBAC Insured
4/14 at 100.00
AAA
 
4,182,229
 
 
7,000
 
California Statewide Communities Development Authority, Revenue Bonds, Sutter Health, Series 2011A, 6.000%, 8/15/42
8/20 at 100.00
AA–
 
7,123,900
 
 
8,000
 
California, General Obligation Bonds, Series 2002, 5.000%, 10/01/32 – NPFG Insured
10/12 at 100.00
A1
 
7,779,280
 
 
2,340
 
Cerritos Public Financing Authority, California, Tax Allocation Revenue Bonds, Los Cerritos Redevelopment Projects, Series 2002A, 5.000%, 11/01/24 – AMBAC Insured
11/17 at 102.00
A–
 
2,100,875
 
 
5,000
 
Clovis Unified School District, Fresno County, California, General Obligation Bonds, Series 2001A, 0.000%, 8/01/25 – FGIC Insured (ETM)
No Opt. Call
AA+ (4)
 
2,798,800
 
     
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999:
         
 
22,985
 
0.000%, 1/15/24 – NPFG Insured
7/11 at 48.16
Baa1
 
8,185,418
 
 
22,000
 
0.000%, 1/15/31 – NPFG Insured
7/11 at 31.52
AAA
 
3,961,320
 
 
50,000
 
0.000%, 1/15/37 – NPFG Insured
7/11 at 21.87
Baa1
 
5,148,500
 
 
5,000
 
Garden Grove, California, Certificates of Participation, Financing Project, Series 2002A, 5.125%, 3/01/32 – AMBAC Insured
3/12 at 101.00
A
 
4,350,250
 
 
8,500
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/35 – FGIC Insured
6/15 at 100.00
A2
 
7,260,615
 
 
5,795
 
Kern Community College District, California, General Obligation Bonds, Series 2006, 0.000%, 11/01/25 – AGM Insured
No Opt. Call
AA+
 
2,324,432
 
 
20
 
Nuveen Investments

 
 

 
 
Principal
   
Optional Call
       
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
 
Value
 
     
California (continued)
         
$
5,243
 
Moreno Valley Public Finance Authority, California, GNMA Collateralized Assisted Living Housing Revenue Bonds, CDC Assisted Living Project, Series 2000A, 7.500%, 1/20/42
1/12 at 105.00
Aaa
$
5,666,949
 
 
4,675
 
Ontario Redevelopment Financing Authority, San Bernardino County, California, Revenue Bonds, Redevelopment Project 1, Series 1993, 5.850%, 8/01/22 – NPFG Insured (ETM)
7/11 at 100.00
BBB (4)
 
5,294,671
 
 
2,590
 
Riverside County Public Financing Authority, California, Tax Allocation Bonds, Multiple Projects, Series 2004, 5.000%, 10/01/25 – SYNCORA GTY Insured
10/14 at 100.00
BBB
 
2,157,263
 
 
2,000
 
San Diego Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Centre City Project, Series 2004A, 5.000%, 9/01/21 – SYNCORA GTY Insured
9/14 at 100.00
A
 
2,016,860
 
     
San Francisco Airports Commission, California, Revenue Refunding Bonds, San Francisco International Airport, Second Series 2001, Issue 27A:
         
 
7,200
 
5.125%, 5/01/21 – NPFG Insured (Alternative Minimum Tax)
11/11 at 100.00
A1
 
7,204,320
 
 
12,690
 
5.250%, 5/01/31 – NPFG Insured (Alternative Minimum Tax)
11/11 at 100.00
A1
 
11,721,753
 
     
San Francisco Bay Area Rapid Transit District, California, Sales Tax Revenue Bonds, Refunding Series 2005A:
         
 
2,000
 
5.000%, 7/01/21 – NPFG Insured
7/15 at 100.00
AA+
 
2,119,160
 
 
3,655
 
5.000%, 7/01/22 – NPFG Insured
7/15 at 100.00
AA+
 
3,890,930
 
 
8,965
 
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C, 4.250%, 8/01/30 – NPFG Insured
8/17 at 100.00
BBB+
 
6,217,407
 
 
3,500
 
Saugus Union School District, Los Angeles County, California, General Obligation Bonds, Series 2006, 0.000%, 8/01/23 – FGIC Insured
No Opt. Call
Aa2
 
1,667,540
 
 
1,000
 
Sierra Joint Community College District, Tahoe Truckee, California, General Obligation Bonds, School Facilities Improvement District 1, Series 2005A, 5.000%, 8/01/27 – FGIC Insured
8/14 at 100.00
Aa2
 
1,006,490
 
 
1,525
 
Sierra Joint Community College District, Western Nevada, California, General Obligation Bonds, School Facilities Improvement District 2, Series 2005A, 5.000%, 8/01/27 – FGIC Insured
8/14 at 100.00
Aa2
 
1,534,897
 
 
3,170
 
Ventura County Community College District, California, General Obligation Bonds, Series 2005B, 5.000%, 8/01/28 – NPFG Insured
8/15 at 100.00
AA
 
3,181,792
 
 
227,058
 
Total California
     
138,267,289
 
     
Colorado – 3.7% (2.4% of Total Investments)
         
 
2,015
 
Board of Trustees of the University of Northern Colorado, Revenue Bonds, Series 2005, 5.000%, 6/01/22 – AGM Insured
6/15 at 100.00
AA+
 
2,120,687
 
 
1,000
 
Denver City and County, Colorado, Airport Revenue Bonds, Series 2006, 5.000%, 11/15/24 – FGIC Insured
11/16 at 100.00
A+
 
1,035,630
 
 
5,365
 
Denver City and County, Colorado, Airport Revenue Bonds, Series 2006A, 5.000%, 11/15/23 – FGIC Insured (UB)
11/16 at 100.00
A+
 
5,594,354
 
 
1,085
 
Denver City and County, Colorado, Airport Revenue Bonds, Trust 2365, 13.779%, 11/15/25 – FGIC Insured (IF)
11/16 at 100.00
A+
 
1,209,612
 
 
9,780
 
E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, Series 2000B, 0.000%, 9/01/32 – NPFG Insured
No Opt. Call
Baa1
 
1,871,990
 
 
10,000
 
E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004A, 0.000%, 9/01/27 – NPFG Insured
No Opt. Call
Baa1
 
2,937,500
 
 
1,250
 
Jefferson County School District R1, Colorado, General Obligation Bonds, Series 2004, 5.000%, 12/15/24 (Pre-refunded 12/15/14) – AGM Insured (UB)
12/14 at 100.00
AA+ (4)
 
1,427,350
 
 
880
 
Park Creek Metropolitan District, Colorado, Senior Limited Property Tax Supported Revenue Refunding Bonds, Series 2011, 6.125%, 12/01/41 (WI/DD, Settling 5/12/11) – AGM Insured
12/20 at 100.00
Aa3
 
872,846
 
 
1,100
 
Poudre Tech Metro District, Colorado, Unlimited Property Tax Supported Revenue Bonds, Refunding & Improvement Series 2010A, 5.000%,
12/20 at 100.00
AA+
 
1,088,065
 
         12/01/39 – AGM Insured          
 
500
 
University of Colorado, Enterprise System Revenue Bonds, Series 2005, 5.000%, 6/01/30 – FGIC Insured
6/15 at 100.00
Aa2
 
507,320
 
 
32,975
 
Total Colorado
     
18,665,354
 
     
Connecticut – 0.2% (0.1% of Total Investments)
         
 
1,000
 
Connecticut Health and Educational Facilities Authority, Revenue Bonds, Wesleyan University, Series 2010G, 5.000%, 7/01/39
7/20 at 100.00
AA
 
1,010,560
 
 
Nuveen Investments
 
21

 
 

 
   
Nuveen Insured Quality Municipal Fund, Inc. (continued)
NQI
 
Portfolio of Investments
April 30, 2011 (Unaudited)
 
 
Principal
   
Optional Call
       
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
 
Value
 
     
District of Columbia – 1.3% (0.9% of Total Investments)
         
$
1,335
 
Washington Convention Center Authority, District of Columbia, Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals 1606, 11.376%, 10/01/30 – AMBAC Insured (IF)
10/16 at 100.00
AA+
$
1,107,796
 
 
3,920
 
Washington Convention Center Authority, District of Columbia, Dedicated Tax Revenue Bonds, Residual Series 1731, 1736, 11.348%, 10/01/36 – AMBAC Insured (IF)
10/16 at 100.00
AA+
 
5,648,132
 
 
5,255
 
Total District of Columbia
     
6,755,928
 
     
Florida – 10.1% (6.5% of Total Investments)
         
 
4,455
 
Broward County School Board, Florida, Certificates of Participation, Series 2005A, 5.000%, 7/01/28 – AGM Insured
7/15 at 100.00
AA+
 
4,361,712
 
 
3,000
 
Citizens Property Insurance Corporation, Florida, High-Risk Account Senior Secured Bonds Series 2010A-1, 5.000%, 6/01/16 – AGM Insured
No Opt. Call
AA+
 
3,195,900
 
 
3,450
 
Collier County, Florida, Capital Improvement Revenue Bonds, Series 2005, 5.000%, 10/01/24 – NPFG Insured
10/14 at 100.00
AA–
 
3,549,981
 
 
2,750
 
Florida State Board of Education, Full Faith and Credit Public Education Capital Outlay Bonds, Series 2003J, 5.000%, 6/01/22 – AMBAC Insured
6/13 at 101.00
AAA
 
2,863,768
 
 
2,550
 
Florida State Board of Education, Public Education Capital Outlay Bonds, Series 2008, Trust 2929, 16.907%, 12/01/16 – AGC Insured (IF)
No Opt. Call
AAA
 
2,674,746
 
 
20,000
 
Lee County, Florida, Airport Revenue Bonds, Series 2000A, 5.750%,
10/11 at 100.00
AA+
 
20,080,600
 
         10/01/25 – AGM Insured (Alternative Minimum Tax)          
 
4,115
 
Miami-Dade County Housing Finance Authority, Florida, Multifamily Housing Revenue Bonds, Monterey Pointe Apartments, Series 2001-2A, 5.850%, 7/01/37 – AGM Insured (Alternative Minimum Tax)
7/11 at 100.00
AA+
 
4,116,769
 
 
7,000
 
Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2002, 5.375%, 10/01/32 – FGIC Insured (Alternative Minimum Tax)
10/12 at 100.00
A2
 
6,471,990
 
 
3,730
 
Palm Beach County School Board, Florida, Certificates of Participation, Series 2003A, 5.000%, 8/01/16 – AMBAC Insured
8/13 at 100.00
AA–
 
3,944,848
 
 
51,050
 
Total Florida
     
51,260,314
 
     
Georgia – 2.0% (1.3% of Total Investments)
         
 
1,000
 
Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 2004, 5.000%, 11/01/22 – AGM Insured
11/14 at 100.00
AA+
 
1,035,880
 
 
7,000
 
Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 2009B, 5.375%, 11/01/39 – AGM Insured
11/19 at 100.00
AA+
 
7,040,320
 
 
2,000
 
City of Fairburn, Georgia, General Obligation Bonds, Series 2011, 5.750%, 12/01/31 – AGM Insured
12/21 at 100.00
AA+
 
2,035,600
 
 
10,000
 
Total Georgia
     
10,111,800
 
     
Hawaii – 0.3% (0.2% of Total Investments)
         
 
1,620
 
Hawaii County, Hawaii, General Obligation Bonds, Series 2003A, 5.000%, 7/15/21 – AGM Insured
7/13 at 100.00
AA+
 
1,735,117
 
     
Illinois – 11.8% (7.5% of Total Investments)
         
 
9,500
 
Chicago, Illinois, Second Lien General Airport Revenue Refunding Bonds, O’Hare International Airport, Series 1999, 5.500%, 1/01/15 – AMBAC Insured (Alternative Minimum Tax)
7/11 at 100.50
AA–
 
9,573,720
 
 
1,775
 
Chicago, Illinois, Third Lien General Airport Revenue Bonds, O’Hare International Airport, Series 2005A, 5.250%, 1/01/24 – NPFG Insured
1/16 at 100.00
A1
 
1,830,788
 
 
13,275
 
Illinois, General Obligation Bonds, Illinois FIRST Program, Series 2001, 5.250%, 5/01/26 – AGM Insured
7/11 at 100.00
AA+
 
13,274,469
 
 
15,785
 
Illinois, General Obligation Bonds, Illinois FIRST Program, Series 2002, 5.250%, 4/01/27 – AGM Insured
4/12 at 100.00
AA+
 
15,767,479
 
 
5,000
 
Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Capital Appreciation Refunding Series 2010B-1, 0.000%, 6/15/45 – AGM Insured
No Opt. Call
AAA
 
502,000
 
 
22
 
Nuveen Investments
 
 
 

 
 
Principal
   
Optional Call
       
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
 
Value
 
     
Illinois (continued)
         
$
18,000
 
Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion Project, Series 2002A, 0.000%, 12/15/24 – NPFG Insured
No Opt. Call
AAA
$
8,369,460
 
 
10,000
 
University of Illinois, Certificates of Participation, Utility Infrastructure Projects, Series 2001B, 5.250%, 8/15/21 (Pre-refunded 8/15/11) – AMBAC Insured
8/11 at 100.00
Aa2 (4)
 
10,143,900
 
 
73,335
 
Total Illinois
     
59,461,816
 
     
Indiana – 2.2% (1.4% of Total Investments)
         
 
3,680
 
Indiana Municipal Power Agency, Power Supply Revenue Bonds, Series 2007A, 5.000%, 1/01/42 – NPFG Insured
1/17 at 100.00
A+
 
3,423,946
 
 
6,905
 
Indiana Transportation Finance Authority, Highway Revenue Bonds, Series 1990A, 7.250%, 6/01/15 – AMBAC Insured
No Opt. Call
AA+
 
7,700,180
 
 
10,585
 
Total Indiana
     
11,124,126
 
     
Kansas – 1.5% (0.9% of Total Investments)
         
 
5,500
 
Kansas Development Finance Authority, Revenue Bonds, Sisters of Charity of Leavenworth Health Services Corporation, Series 2010A, 5.000%, 1/01/40
No Opt. Call
AA
 
5,289,075
 
 
2,000
 
Wichita, Kansas, Water and Sewerage Utility Revenue Bonds, Series 2003, 5.000%, 10/01/21 – FGIC Insured
10/13 at 100.00
Aa2
 
2,079,940
 
 
7,500
 
Total Kansas
     
7,369,015
 
     
Kentucky – 6.3% (4.0% of Total Investments)
         
 
3,015
 
Kentucky Asset/Liability Commission, General Fund Revenue Project Notes, First Series 2005, 5.000%, 5/01/25 – NPFG Insured
5/15 at 100.00
Aa3
 
3,094,355
 
     
Kentucky Economic Development Finance Authority, Health System Revenue Bonds, Norton Healthcare Inc., Series 2000C:
         
 
2,530
 
6.150%, 10/01/27 – NPFG Insured
10/13 at 101.00
Baa1
 
2,572,656
 
 
12,060
 
6.150%, 10/01/28 – NPFG Insured
10/13 at 101.00
Baa1
 
12,252,116
 
     
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) – NPFG Insured
10/13 at 101.00
BBB (4)
 
4,345,514
 
 
6,125
 
6.150%, 10/01/28 (Pre-refunded 10/01/13) – NPFG Insured
10/13 at 101.00
BBB (4)
 
6,976,743
 
 
2,230
 
Kentucky State Property and Buildings Commission, Revenue Bonds, Project 85, Series 2005, 5.000%, 8/01/23 (Pre-refunded 8/01/15) – AGM Insured
8/15 at 100.00
AA+ (4)
 
2,584,325
 
 
29,775
 
Total Kentucky
     
31,825,709
 
     
Louisiana – 3.8% (2.4% of Total Investments)
         
     
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006A:
         
 
11,325
 
4.750%, 5/01/39 - AGM Insured (UB)
5/16 at 100.00
AA+
 
10,942,102
 
 
8,940
 
4.500%, 5/01/41 - FGIC Insured (UB)
5/16 at 100.00
Aa1
 
8,177,865
 
 
10
 
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006, Residuals 660-1, 15.745%, 5/01/34 - FGIC Insured (IF)
5/16 at 100.00
Aa1
 
6,590
 
 
5
 
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006, Residuals 660-1, 16.646%, 5/01/34 - FGIC Insured (IF)
5/16 at 100.00
Aa1
 
3,299
 
 
20,280
 
Total Louisiana
     
19,129,856
 
     
Maine – 0.1% (0.1% of Total Investments)
         
 
555
 
Maine Health and Higher Educational Facilities Authority, Revenue Bonds, Series 1999B, 6.000%, 7/01/29 – NPFG Insured
7/11 at 100.00
Aaa
 
558,341
 
     
Maryland – 1.8% (1.2% of Total Investments)
         
 
2,030
 
Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Western Maryland Health, Series 2006A, 4.750%, 7/01/36 – NPFG Insured
7/16 at 100.00
Baa1
 
1,819,854
 
 
7,335
 
Maryland Transportation Authority, Airport Parking Revenue Bonds, Baltimore-Washington International Airport Passenger Facility, Series 2002B, 5.500%, 3/01/18 – AMBAC Insured (Alternative Minimum Tax)
3/12 at 101.00
A2
 
7,523,069
 
 
9,365
 
Total Maryland
     
9,342,923
 
 
Nuveen Investments
 
23

 
 

 
   
Nuveen Insured Quality Municipal Fund, Inc. (continued)
NQI
 
Portfolio of Investments
April 30, 2011 (Unaudited)
 
 
Principal
   
Optional Call
       
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
 
Value
 
     
Massachusetts – 4.6% (3.0% of Total Investments)
         
$
5,000
 
Massachusetts Bay Transportation Authority, Sales Tax Revenue Bonds, Senior Lien Series 2002A, 5.000%, 7/01/27 (Pre-refunded 7/01/12) – FGIC Insured
7/12 at 100.00
AAA
$
5,270,800
 
 
4,000
 
Massachusetts Department of Transportation, Metropolitan Highway System Revenue Bonds, Commonwealth Contract Assistance Secured, Refunding Series 2010B, 5.000%, 1/01/35
1/20 at 100.00
AA
 
4,060,200
 
 
3,335
 
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Massachusetts Institute of Technology, Tender Option Bond Trust 11824, 13.425%, 1/01/16 (IF)
No Opt. Call
AAA
 
3,539,069
 
     
Massachusetts State, 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
A1 (4)
 
1,391,300
 
 
1,000
 
5.250%, 1/01/22 (Pre-refunded 1/01/14) – FGIC Insured
1/14 at 100.00
A1 (4)
 
1,113,040
 
 
1,195
 
5.250%, 1/01/23 (Pre-refunded 1/01/14) – FGIC Insured
1/14 at 100.00
A1 (4)
 
1,330,083
 
 
2,000
 
5.250%, 1/01/24 (Pre-refunded 1/01/14) – FGIC Insured
1/14 at 100.00
A1 (4)
 
2,226,080
 
 
3,465
 
Massachusetts Water Resources Authority, General Revenue Bonds, Series 2007A, 4.500%, 8/01/46 – AGM Insured (UB) (5)
2/17 at 100.00
AA+
 
3,166,733
 
 
1,245
 
Springfield Water and Sewerage Commission, Massachusetts, General Revenue Bonds, Refunding Series 2010B, 5.000%, 11/15/30 – AGC Insured
No Opt. Call
AA+
 
1,297,265
 
 
22,490
 
Total Massachusetts
     
23,394,570
 
     
Michigan – 1.3% (0.8% of Total Investments)
         
 
1,825
 
Marysville Public School District, St. Clair County, Michigan, General Obligation Bonds, Series 2007, 5.000%, 5/01/28 – AGM Insured
5/17 at 100.00
AA+
 
1,854,784
 
 
4,750
 
Michigan Strategic Fund, Collateralized Limited Obligation Pollution Control Revenue Refunding Bonds, Detroit Edison Company, Series 1999A, 5.550%, 9/01/29 – NPFG Insured (Alternative Minimum Tax)
9/11 at 100.00
A
 
4,751,045
 
 
6,575
 
Total Michigan
     
6,605,829
 
     
Minnesota – 0.2% (0.1% of Total Investments)
         
 
1,000
 
Minneapolis-Saint Paul Housing and Redevelopment Authority, Minnesota, Health Care Revenue Bonds, Children’s Health Care, Series 2004A-1 Remarketed, 4.625%, 8/15/29 – AGM Insured
8/20 at 100.00
AA+
 
979,380
 
     
Mississippi – 2.3% (1.5% of Total Investments)
         
 
2,715
 
Harrison County Wastewater Management District, Mississippi, Revenue Refunding Bonds, Wastewater Treatment Facilities, Series 1991B, 7.750%, 2/01/14 – FGIC Insured (ETM)
No Opt. Call
BBB (4)
 
3,222,026
 
 
2,545
 
Harrison County Wastewater Management District, Mississippi, Wastewater Treatment Facilities Revenue Refunding Bonds, Series 1991A, 8.500%, 2/01/13 – FGIC Insured (ETM)
No Opt. Call
N/R (4)
 
2,775,984
 
 
5,445
 
Mississippi Development Bank, Special Obligation Bonds, Gulfport Water and Sewer System Project, Series 2005, 5.250%, 7/01/24 – AGM Insured
No Opt. Call
AA+
 
5,764,839
 
 
10,705
 
Total Mississippi
     
11,762,849
 
     
Nebraska – 2.3% (1.4% of Total Investments)
         
 
12,155
 
Lincoln, Nebraska, Electric System Revenue Bonds, Series 2007A, 4.500%, 9/01/37 – FGIC Insured (UB)
9/17 at 100.00
AA
 
11,374,406
 
     
Nevada – 2.6% (1.6% of Total Investments)
         
 
27,700
 
Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000, 5.375%, 1/01/40 – AMBAC Insured (6)
7/11 at 100.00
N/R
 
6,946,606
 
 
5,720
 
Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, Reno Transportation Rail Access Corridor Project, Series 2002, 5.125%, 6/01/32 (Pre-refunded 6/01/12) – AMBAC Insured
6/12 at 100.00
N/R (4)
 
6,015,324
 
 
33,420
 
Total Nevada
     
12,961,930
 
 
24
 
Nuveen Investments

 
 

 
 
Principal
   
Optional Call
       
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
 
Value
 
     
New Jersey – 3.8% (2.5% of Total Investments)
         
     
New Jersey Economic Development Authority, Revenue Bonds, Motor Vehicle Surcharge, Series 2004A:
         
$
1,700
 
5.000%, 7/01/22 – NPFG Insured
7/14 at 100.00
A
$
1,727,030
 
 
1,700
 
5.000%, 7/01/23 – NPFG Insured
7/14 at 100.00
A
 
1,718,496
 
 
7,000
 
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2010D, 5.000%, 12/15/23
No Opt. Call
A+
 
7,220,850
 
 
6,000
 
New Jersey Turnpike Authority, Revenue Bonds, Refunding Series 2005D-1, 5.250%, 1/01/26 – AGM Insured
No Opt. Call
AA+
 
6,546,660
 
 
2,100
 
New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 5.000%, 1/01/19 – FGIC Insured
7/13 at 100.00
A+
 
2,225,139
 
 
18,500
 
Total New Jersey
     
19,438,175
 
     
New Mexico – 1.3% (0.8% of Total Investments)
         
     
New Mexico Finance Authority, Public Project Revolving Fund Revenue Bonds, Series 2004C:
         
 
1,345
 
5.000%, 6/01/22 – AMBAC Insured
6/14 at 100.00
AAA
 
1,453,905
 
 
3,290
 
5.000%, 6/01/23 – AMBAC Insured
6/14 at 100.00
AAA
 
3,527,505
 
 
1,330
 
New Mexico State University, Revenue Bonds, Series 2004, 5.000%,
4/14 at 100.00
AA
 
1,376,869
 
         4/01/23 – AMBAC Insured          
 
5,965
 
Total New Mexico
     
6,358,279
 
     
New York – 12.1% (7.7% of Total Investments)
         
 
10,000
 
Dormitory Authority of the State of New York, Revenue Bonds, Columbia University, Series 2011A, 5.000%, 10/01/41
4/21 at 100.00
AAA
 
10,343,600
 
 
15,000
 
Dormitory Authority of the State of New York, Revenue Bonds, School Districts Financing Program, Series 2002D, 5.500%, 10/01/17 – NPFG Insured
10/12 at 100.00
A+
 
15,775,050
 
 
4,080
 
Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series 2006A, 4.500%, 2/15/47 – NPFG Insured
2/17 at 100.00
A
 
3,105,043
 
 
2,890
 
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2006A, 5.000%, 12/01/25 – FGIC Insured
6/16 at 100.00
A–
 
2,986,815
 
 
3,300
 
Long Island Power Authority, New York, Electric System Revenue Bonds, Series 2006F, 4.250%, 5/01/33 – NPFG Insured
11/16 at 100.00
A–
 
2,965,446
 
 
7,800
 
Metropolitan Transportation Authority, New York, State Service Contract Refunding Bonds, Series 2002A, 5.000%, 7/01/25 – FGIC Insured
7/12 at 100.00
AA–
 
7,828,548
 
 
1,290
 
Monroe County Industrial Development Corporation, New York, FHA Insured Mortgage Revenue Bonds, Unity Hospital of Rochestor Project, Series 2010, 5.500%, 8/15/40
2/21 at 100.00
Aa2
 
1,297,740
 
 
1,740
 
New York Convention Center Development Corporation, Hotel Unit Fee Revenue Bonds, Series 2005, 17.016%, 11/15/44 – AMBAC Insured (IF)
11/15 at 100.00
AA+
 
1,758,026
 
 
595
 
New York State Housing Finance Agency, Mortgage Revenue Refunding Bonds, Housing Project, Series 1996A, 6.125%, 11/01/20 – AGM Insured
11/11 at 100.00
AA+
 
595,672
 
 
4,200
 
New York State Mortgage Agency, Homeowner Mortgage Revenue Bonds, Series 82, 5.550%, 10/01/19 – NPFG Insured (Alternative Minimum Tax)
10/11 at 100.00
Aa1
 
4,203,696
 
     
New York State Urban Development Corporation, Service Contract Revenue Bonds, Series 2005B:
         
 
2,460
 
5.000%, 3/15/24 – AGM Insured (UB)
3/15 at 100.00
AAA
 
2,618,990
 
 
2,465
 
5.000%, 3/15/25 – AGM Insured (UB)
3/15 at 100.00
AAA
 
2,601,660
 
 
5,000
 
Triborough Bridge and Tunnel Authority, New York, Subordinate Lien General Purpose Revenue Bonds, Series 2003A, 5.000%, 11/15/32 – FGIC Insured
11/13 at 100.00
Aa3
 
5,025,350
 
 
60,820
 
Total New York
     
61,105,636
 
     
Ohio – 3.6% (2.3% of Total Investments)
         
 
7,000
 
Cleveland State University, Ohio, General Receipts Bonds, Series 2004, 5.250%, 6/01/19 – FGIC Insured
6/14 at 100.00
A+
 
7,427,350
 
 
9,045
 
Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, Series 2006, 4.250%, 12/01/32 – AMBAC Insured
12/16 at 100.00
A1
 
7,821,483
 
 
Nuveen Investments
 
25

 
 

 
   
Nuveen Insured Quality Municipal Fund, Inc. (continued)
NQI
 
Portfolio of Investments
April 30, 2011 (Unaudited)
 
 
Principal
   
Optional Call
       
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
 
Value
 
     
Ohio (continued)
         
$
3,065
 
Oak Hills Local School District, Hamilton County, Ohio, General Obligation Bonds, Refunding Series 2005, 5.000%, 12/01/24 – AGM Insured
12/15 at 100.00
AA+
$
3,197,960
 
 
19,110
 
Total Ohio
     
18,446,793
 
     
Pennsylvania – 6.3% (4.0% of Total Investments)
         
 
3,000
 
Allegheny County Sanitary Authority, Pennsylvania, Sewerage Revenue Bonds, Series 2005A, 5.000%, 12/01/23 – NPFG Insured
12/15 at 100.00
A1
 
3,103,800
 
 
1,165
 
Allegheny County Sanitary Authority, Pennsylvania, Sewerage Revenue Bonds, Series 2010, 5.000%, 6/01/40 – AGM Insured
No Opt. Call
AA+
 
1,149,121
 
 
6,000
 
Chester County Health and Educational Facilities Authority, Pennsylvania, Health System Revenue Bonds, Jefferson Health System, Series 2010A, 5.000%, 5/15/40
5/20 at 100.00
AA
 
5,518,380
 
 
1,600
 
Delaware County Authority, Pennsylvania, Revenue Bonds, Villanova University, Series 2006, 5.000%, 8/01/24 – AMBAC Insured
8/16 at 100.00
A+
 
1,667,280
 
 
2,450
 
Delaware River Port Authority, New Jersey and Pennsylvania, Revenue Bonds, Series 2010E, 5.000%, 1/01/40 – AGM Insured
1/20 at 100.00
AA+
 
2,420,404
 
 
735
 
Montgomery County Industrial Development Authority, Pennsylvania, FHA Insured Mortgage Revenue Bonds, New Regional Medical Center Project, Series 2010, 5.375%, 8/01/38
8/20 at 100.00
AA
 
739,461
 
 
5,400
 
Pennsylvania Public School Building Authority, Lease Revenue Bonds, School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 – AGM Insured (UB)
12/16 at 100.00
AA+
 
5,070,438
 
 
7,850
 
Philadelphia, Pennsylvania, Airport Revenue Bonds, Series 2010A, 5.000%, 6/15/40 – AGM Insured
6/20 at 100.00
AA+
 
7,626,746
 
 
2,500
 
Pittsburgh and Allegheny County Sports and Exhibition Authority, Pennsylvania, Hotel Room Excise Tax Revenue Bonds, Refunding Series 2010, 5.000%, 2/01/35 – AGC Insured
8/20 at 100.00
AA+
 
2,382,900
 
 
2,000
 
Pittsburgh Public Parking Authority, Pennsylvania, Parking Revenue Bonds, Series 2005B, 5.000%, 12/01/23 – FGIC Insured
12/15 at 100.00
BBB
 
1,998,420
 
 
32,700
 
Total Pennsylvania
     
31,676,950
 
     
Puerto Rico – 2.2% (1.4% of Total Investments)
         
 
2,500
 
Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2005RR, 5.000%, 7/01/22 – FGIC Insured
7/15 at 100.00
A3
 
2,519,475
 
 
25,000
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A, 0.000%, 8/01/42 – NPFG Insured
No Opt. Call
Aa2
 
3,146,750
 
 
5,000
 
Puerto Rico, Highway Revenue Bonds, Highway and Transportation Authority, Series 2003AA, 5.500%, 7/01/16 – FGIC Insured
No Opt. Call
A2
 
5,393,000
 
 
32,500
 
Total Puerto Rico
     
11,059,225
 
     
South Carolina – 2.3% (1.5% of Total Investments)
         
 
2,425
 
Charleston County School District, South Carolina, General Obligation Bonds, Series 2004A, 5.000%, 2/01/22 – AMBAC Insured
2/14 at 100.00
Aa1
 
2,578,236
 
 
9,950
 
South Carolina Transportation Infrastructure Bank, Revenue Bonds, Series 2007A, 4.500%, 10/01/34 – SYNCORA GTY Insured
10/16 at 100.00
A1
 
9,025,148
 
 
12,375
 
Total South Carolina
     
11,603,384
 
     
Tennessee – 1.4% (0.9% 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 – AGM Insured
1/13 at 52.75
AA+
 
3,643,800
 
 
5,000
 
0.000%, 1/01/25 – AGM Insured
1/13 at 49.71
AA+
 
2,284,100
 
 
2,750
 
0.000%, 1/01/26 – AGM Insured
1/13 at 46.78
AA+
 
1,179,310
 
 
15,250
 
Total Tennessee
     
7,107,210
 
 
26
 
Nuveen Investments

 
 

 
 
Principal
   
Optional Call
       
 
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
 
Value
 
     
Texas – 17.0% (10.9% of Total Investments)
         
$
2,280
 
Bexar County, Texas, Venue Project Revenue Bonds, Refunding Series 2010, 5.500%, 8/15/49 – AGM Insured
8/19 at 100.00
AA+
$
2,284,309
 
 
3,135
 
Corpus Christi, Texas, Utility System Revenue Bonds, Series 2004, 5.250%, 7/15/20 – AGM Insured (UB)
7/14 at 100.00
AA+
 
3,395,080
 
 
3,000
 
Dallas-Ft. Worth International Airport, Texas, Joint Revenue Refunding and Improvement Bonds, Series 2001A, 5.750%, 11/01/13 – NPFG Insured (Alternative Minimum Tax)
11/11 at 100.00
A+
 
3,072,000
 
 
3,735
 
Grand Prairie Independent School District, Dallas County, Texas, General Obligation Bonds, Series 2003, 5.125%, 2/15/31 (Pre-refunded 2/15/13) – AGM Insured
2/13 at 100.00
AA+ (4)
 
4,036,863
 
 
4,700
 
Houston, Texas, First Lien Combined Utility System Revenue Bonds, Series 2004A, 5.250%, 5/15/24 – FGIC Insured
5/14 at 100.00
AA
 
5,025,099
 
 
17,000
 
Houston, Texas, Junior Lien Water and Sewerage System Revenue Refunding Bonds, Series 2002A, 5.750%, 12/01/32 – AGM Insured (ETM)
No Opt. Call
AA+ (4)
 
20,110,830
 
 
4,685
 
Houston, Texas, Subordinate Lien Airport System Revenue Bonds, Series 2000A, 5.500%, 7/01/19 – AGM Insured (Alternative Minimum Tax)
7/11 at 100.00
AA+
 
4,697,322
 
 
19,200
 
Jefferson County Health Facilities Development Corporation, Texas, FHA-Insured Mortgage Revenue Bonds, Baptist Hospital of Southeast Texas, Series 2001, 5.400%, 8/15/31 (Pre-refunded 8/15/11) – AMBAC Insured
8/11 at 100.00
N/R (4)
 
19,460,928
 
 
2,000
 
Laredo Independent School District Public Facilities Corporation, Texas, Lease Revenue Bonds, Series 2004A, 5.000%, 8/01/24 – AMBAC Insured
8/11 at 100.00
A
 
2,003,060
 
 
22,045
 
North Central Texas Health Facilities Development Corporation, Revenue Bonds, Children’s Medical Center of Dallas, Series 2002, 5.250%, 8/15/32 – AMBAC Insured
8/12 at 101.00
Aa3
 
21,847,917
 
 
81,780
 
Total Texas
     
85,933,408
 
     
Utah – 0.7% (0.5% of Total Investments)
         
 
3,615
 
Utah Transit Authority, Sales Tax Revenue Bonds, Tender Option Bond Trust R-11752-1, 12.604%, 6/15/27 – AGM Insured (IF)
6/18 at 100.00
AAA
 
3,702,519
 
     
Washington – 11.8% (7.5% of Total Investments)
         
 
10,730
 
Chelan County Public Utility District 1, Washington, Hydro Consolidated System Revenue Refunding Bonds, Series 2001C, 5.650%, 7/01/32 – NPFG Insured (Alternative Minimum Tax) (UB)
7/11 at 101.00
AA
 
10,754,894
 
 
8,000
 
King County, Washington, Sewer Revenue Bonds, Series 2007, 5.000%, 1/01/42 – AGM Insured
7/17 at 100.00
AA+
 
8,001,520
 
 
1,665
 
King County, Washington, Sewer Revenue Bonds, Tender Option Bond Trust 3090, 13.326%, 7/01/32 – AGM Insured (IF)
7/17 at 100.00