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 811-21211
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Nuveen Insured New York Tax-Free Advantage Municipal Fund
--------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
--------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: September 30
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Date of reporting period: September 30, 2007
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
ANNUAL REPORT
September 30, 2007
Nuveen Investments
MUNICIPAL CLOSED-END FUNDS
Photo of: Small child
NUVEEN NEW YORK
INVESTMENT QUALITY
MUNICIPAL FUND, INC.
NQN
NUVEEN NEW YORK
SELECT QUALITY
MUNICIPAL FUND, INC.
NVN
NUVEEN NEW YORK
QUALITY INCOME
MUNICIPAL FUND, INC.
NUN
NUVEEN INSURED
NEW YORK PREMIUM
INCOME MUNICIPAL
FUND, INC.
NNF
NUVEEN INSURED
NEW YORK DIVIDEND
ADVANTAGE MUNICIPAL
FUND
NKO
NUVEEN INSURED
NEW YORK TAX-FREE
ADVANTAGE MUNICIPAL
FUND
NRK
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
LOGO: NUVEEN Investments
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Chairman's
LETTER TO SHAREHOLDERS
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Once again, I am pleased to report that over the twelve-month period covered by
this report your Fund continued to provide you with attractive monthly tax-free
income. For more details about the management strategy and performance of your
Fund, please read the Portfolio Manager's Comments, the Dividend and Share Price
Information, and the Performance Overview sections of this report.
I also wanted to take this opportunity to report some important news about
Nuveen Investments. The firm recently was acquired by a group led by Madison
Dearborn Partners, LLC. While this affects the corporate structure of Nuveen
Investments, it has no impact on the investment objectives, portfolio management
strategies or dividend policy of your Fund.
With the recent volatility in the stock market, many have begun to wonder which
way the market is headed, and whether they need to adjust their holdings of
investments. No one knows what the future will bring, which is why we think a
well-balanced portfolio that is structured and carefully monitored with the help
of an investment professional is an important component in achieving your
long-term financial goals. A well-diversified portfolio may actually help to
reduce your overall investment risk, and we believe that investments like your
Nuveen Investments Fund can be important building blocks in a portfolio crafted
to perform well through a variety of market conditions.
We also are pleased to be able to offer you a choice concerning how you receive
your shareholder reports and other Fund information. As an alternative to mailed
copies, you can sign up to receive future Fund reports and other Fund
information by e-mail and the internet. The inside front cover of this report
contains information on how you can sign up.
We are grateful that you have chosen us as a partner as you pursue your
financial goals and we look forward to continuing to earn your trust in the
months and years ahead. At Nuveen Investments, our mission continues to be to
assist you and your financial advisor by offering investment services and
products that can help you to secure your financial objectives.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
November 16, 2007
Portfolio Manager's COMMENTS
Nuveen Investments Municipal Closed-End Funds
NQN, NVN, NUN,
NNF, NKO, NRK
Portfolio manager Cathryn Steeves discusses national and state economic and
municipal market environments, key investment strategies, and the annual
performance of these six Nuveen New York Funds. Cathryn, who joined Nuveen in
1996, assumed portfolio management responsibility for the Funds in July 2006.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE ANNUAL
REPORTING PERIOD ENDED SEPTEMBER 30, 2007?
On September 30, 2007, yields on the benchmark 10-year U.S. Treasury note and
the Bond Buyer 25 Revenue Bond Index, a widely followed measure of longer-term
municipal bond interest rates, stood about where they were one year earlier. But
just looking at the yields on these two dates is misleading. Longer-term
municipal bond interest rates actually declined during much of this twelve-month
period. This changed in the summer of 2007, as developments in the financial
sector, especially in the credit markets, led to increased volatility, tightened
liquidity and a flight to quality. This was particularly evident in August, when
market concerns about defaults on subprime mortgages resulted in a liquidity
crisis across all fixed income asset classes. The inability to properly value
collateralized debt products with exposure to subprime mortgages drove down bond
prices and forced some owners of this type of debt to sell holdings into a very
weak market. (These Nuveen New York Municipal Closed-End Funds had no exposure
to the collateralized debt products that were at the center of this liquidity
crisis.)
After 14 months of remaining on the sidelines, the Federal Reserve responded to
credit market volatility by cutting the fed funds rate by 50 basis points--from
5.25% to 4.75%-- in September 2007. (On October 31, 2007, after the close of
this reporting period, the Fed reduced the fed funds rate another 25 basis
points to 4.50%.) The decline in shorter-term municipal bond interest rates and
the jump in longer-term municipal rates produced a slight steepening of the
municipal bond yield curve late in the reporting period. In addition, as the
markets repriced risk, credit spreads widened, and higher quality bonds
generally outperformed lower quality credits.
Discussions of specific investments are for illustrative purposes only and are
not intended as recommendations of individual investments. The views expressed
in this commentary represent those of the portfolio manager as of the date of
this report and are subject to change at any time, based on market conditions
and other factors. The Funds disclaim any obligation to advise shareholders of
such changes.
4
The U.S. gross domestic product (GDP), a closely watched measure of economic
growth, expanded at below-trend levels of 2.1% in the fourth quarter of 2006 and
0.6% in the first quarter of 2007, before rebounding sharply to 3.8% in the
second quarter of 2007 (all GDP numbers annualized). In the third quarter of
2007, increases in consumer spending, business investment and exports helped GDP
growth reach 3.9%. While the Consumer Price Index (CPI) registered a 2.8%
year-over-year gain as of September 2007, the increase in this inflation gauge
for the first nine months of 2007 was 3.6%, driven largely by rises in energy
and food prices. The core CPI (which excludes food and energy prices) rose 2.1%
between January and September 2007, remaining just above the Fedunofficial
target of 2.0% or lower. The labor market continued to be tight, with a national
unemployment rate of 4.7% in September 2007, up from 4.6% in September 2006.
September 2007 marked the 49th consecutive month of employment growth, the
longest string in U.S. history.
Over the twelve months ended September 2007, municipal bond issuance nationwide
totaled $466.6 billion, an increase of 21% from the previous twelve months.
During the first nine months of 2007, municipal issuance remained on a record
pace, as $319.7 billion in new securities came to market, up 19% over the same
period in 2006. A major factor in 2007 volume was the 30% increase in advance
refundings,1 driven by attractive borrowing rates for issuers during the first
part of the year. For the majority of the period, the strength and diversity of
demand for municipal bonds were as important as supply, as the surge in issuance
was absorbed by a broad-based universe of traditional and nontraditional buyers,
including retail investors, property and casualty insurance companies, hedge
funds and arbitragers, and overseas investors.
HOW WERE THE ECONOMIC AND MARKET ENVIRONMENTS IN NEW YORK DURING THIS
REPORTINGPERIOD?
New York state's GDP grew 3.4% in 2006, on par with the national average. The
state's economy remained diverse, with financial services, education and health
care, professional and business services, retail trade and government serving as
key drivers. Although New York has seen its concentration of financial sector
jobs drop since the early 1990s, the state continued to have more relative
exposure to the financial industry than the rest of the nation on average.
Recent events stemming from the subprime mortgage situation led to weaker
financial performance by some major New York investment firms, layoffs in their
subprime loan divisions, and a slower hiring outlook for the financial industry
in New York City. Overall, however, the rate of job creation in New
1 Advance refundings, also known as pre-refundings or refinancings, occur when
an issuer sells new bonds and uses the proceeds to fund principal and interest
payments of older existing bonds. This process often results in lower borrowing
costs for bond issuers.
5
York City in 2006 and the first nine months of 2007 was almost twice that of the
state as a whole. This reflected continued job losses in the manufacturing
industry in upstate New York, especially auto manufacturing. As of September
2007, the unemployment rate in New York was 4.6%, up from 4.3% in September 2006
and above the historical low of 4.0% set in March 2007. Demographic trends in
the state continued to lag those at the national level, with population growth
of 1.7% over the past six years, compared with the national average of 6.4%,
ranking New York 43rd in the nation.
Due chiefly to tax receipt growth, New York ended fiscal 2006-2007 with a $1.5
billion budget surplus. For fiscal 2007-2008, the $120.4 billion state budget
called for setting aside more than $1.6 billion in increased reserves, including
$175 million to fund a new rainy day reserve established as part of budget
reform. New York's budget remained extremely sensitive to fluctuations in the
financial services industry, with more than half of the state's general fund
receipts generated by personal income taxes, which continued to be heavily
dependent on high-income Wall Street employment and capital gains. For much of
the past decade, higher-than-projected revenues from this area of the state
economy helped to erase potential budget gaps. Despite recent improvements,
current forecasts estimate budget deficits of $3.6 billion in fiscal 2008-2009
and $6.6 billion in 2010-2011. Given recent events, we continued to monitor the
situation in the financial industry for signs of potential impact on the state's
economy and credit rating. As of September 30, 2007, Moody's, Standard & Poor's,
and Fitch rated New York general obligation debt at Aa3/AA/AA-, respectively.
Both Moody's and Standard & Poor's maintained stable outlooks for the state. For
the twelve months ended September 30, 2007, municipal issuance in New York
totaled $34.7 billion, down more than 4% from the previous twelve months. During
the first nine months of 2007, New York supply was similar to that of
January-September 2006, at $21.2 billion, an increase of 1%. For both the
twelve-month and year-to date periods, New York ranked as the third largest
state issuer in the nation, behind California and Texas. According to Moody's,
the state's outstanding debt continued to grow, swelling from $14 billion in
1990 to $48 billion in 2006. As a result, debt service was expected to become an
increasingly large burden on state finances.
6
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NEW YORK FUNDS DURING THIS REPORTING
PERIOD?
In the municipal bond interest rate market environment of the past twelve
months, we continued to emphasize a disciplined approach to duration2 management
and yield curve positioning.
Although New York issuance remained rather flat during this period, we continued
to find opportunities to make purchases with the potential to add value to the
Funds. In general, our focus was on buying attractively priced, premium coupon
bonds with longer durations. Some of these purchases were made in the charter
school, higher education, and health care segments of the market. Even though
these are insured Funds, we were also able to capitalize on the credit situation
by buying insured bonds with weaker underlying credits that represented value
prospects. Toward the end of the period, we added some short-term insured
securities to these Funds. These bonds, many of which had underlying credits
with which we were familiar through our research efforts, offered higher yields
and attractive pricing in the aftermath of the liquidity crisis.
To generate cash for purchases and to help move the Funds' durations closer to
our strategic target, we selectively sold holdings with shorter durations. As
interest rates rose late in the period, we also found a variety of opportunities
to sell holdings that were purchased when yields were lower and replace them
with similar, newer credits that yielded comparatively more. This process
allowed us to maintain the Funds' current portfolio characteristics while
strengthening their future income streams.
In all six of these Funds, our duration management strategies during this period
included the use of inverse floating rate securities3, a type of derivative
financial instrument. The inverse floaters had the dual benefit of bringing the
Funds' durations closer to our preferred strategic target and enhancing the
Funds' income- generation capabilities.
As discussed in past shareholder reports, we also have used forward interest
rate swaps (an additional type of derivative instrument) as a duration
management tool when we believed this supported our overall investment
management strategies. The goal of this strategy is to help us manage net asset
value (NAV) volatility without having a negative impact on the Funds' income
streams or common share dividends over the short term. During this reporting
period, we employed interest rate swaps in NUN and NRK of these New York Funds.
2 Duration is a measure of a bond's price sensitivity as interest rates change,
with longer duration bonds displaying more sensitivity to these changes than
bonds with shorter durations.
3 An inverse floating rate security is a financial instrument designed to pay
long-term tax-exempt interest at a rate that varies inversely with a short-term
tax-exempt interest rate index. For the Nuveen Funds, the index typically used
is the Securities Industry and Financial Markets (SIFM) Municipal Swap Index
(previously referred to as the Bond Market Association Index or BMA). Inverse
floaters, including those inverse floating rate securities in which the Funds
invested during the reporting period, are further defined within the "Notes to
Financial Statements" and "Glossary of Terms Used in This Report" sections of
this shareholder report.
7
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen Funds, as well as relevant index and peer
group information, are presented in the accompanying table.
Total Returns on Net Asset Value*
For periods ended 9/30/07
1-Year 5-Year 10-Year
NQN 2.22% 4.48% 6.19%
NVN 1.75% 4.66% 5.98%
NUN 1.81% 4.42% 5.78%
NNF 1.85% 4.38% 5.89%
NKO 2.36% 5.05% NA
NRK 2.69% NA NA
Lehman Brothers
NY Insured Tax-Exempt
Bond Index4 3.16% 4.10% 5.53%
Lipper NY Insured
Municipal Debt
Funds Average5 2.20% 4.30% 5.53%
For the twelve months ended September 30, 2007, the total return on NAV for all
six of the Funds in this report underperformed the return on the Lehman Brothers
New York Insured Tax-Exempt Bond Index. NQN, NKO, and NRK outperformed the
average return for the Lipper New York Insured fund peer group, while NVN, NUN,
and NNF trailed their peer group average.
The major factors that influenced the Funds' returns during this period included
the use of financial leverage, duration and yield curve positioning, the
structure of various holdings and allocations to lower-rated credits in NKO and
NRK, which can invest up to 20% of their assets in uninsured investment-grade
quality securities.
One of the key factors in the annual performance of these Funds relative to that
of the unleveraged Lehman Brothers New York Insured Tax-Exempt Bond Index was
the use of financial leverage. All of these Funds were negatively impacted by
their use of leverage during this period. Although leveraging provides
opportunities overtime for additional income and total returns for common
shareholders, it can also expose shareholders to additional risk when market
conditions are unfavorable. With the dramatic increase in yields on longer
municipal bonds during the last part of this period, the impact of the valuation
changes in these bonds was magnified by the use of leverage in these six Funds.
*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.
4 The Lehman Brothers New York Insured Tax-Exempt Bond Index is an unleveraged,
unmanaged index comprising a broad range of insured New York municipal bonds.
Results for the Lehman index do not reflect any expenses.
5 The Lipper New York Insured Municipal Debt Funds Average is calculated using
the returns of all closed-end exchange-traded funds in this category for each
period as follows: 1 year, 12 funds; 5 years, 9 funds; and 10 years, 7 funds.
Fund and Lipper returns assume reinvestment of dividends.
8
Some of the differential in the one-year returns among these Funds can be
attributed to the variation in the percentage of assets that was leveraged in
each Fund. The greater the leverage, the greater the negative impact on that
Fund's performance during this period. While the value provided by leverage was
limited over this reporting period, we firmly believe that the use of this
strategy should work to the benefit of the leveraged Funds over the long term.
This is demonstrated by the five-year and ten-year return performances--both in
absolute terms and relative to the Lehman Brothers New York Insured Tax-Exempt
Bond Index--of the Funds in this report.
In the interest rate environment over the past twelve months, bonds in the
Lehman Brothers Municipal Bond Index with maturities between two and eight years
benefited the most from changes in the interest rate environment. As a result,
these bonds generally outperformed credits with longer maturities. Bonds having
the longest maturities (22 years and longer) posted the worst returns for the
period. In general, the New York Funds tended to be most heavily weighted in the
intermediate part of the curve and relatively underexposed to the
poorly-performing longest part of the curve. Overall, the Funds' overall yield
curve positioning was a net positive for performance during this period.
As interest rates backed up during the summer of 2007, structure also played a
role in the relative performance of the bonds in our portfolios. Credits that
had higher coupons tended to remain at a premium as rates rose, enabling these
bonds to better retain their value during this period. At the same time, bonds
that did not have higher coupons were priced at par or even a slight discount,
leading to underperformance as spreads widened. Among these Funds, NQN held the
greatest percentage of these higher coupon bonds. This was due in part to the
greater availability of these bonds at the time NQN was assembled in 1990.
In addition, credit exposure was a factor in the performance of NKO and NRK over
this period. As interest rates on longer municipal bonds rose and credit spreads
widened, lower credit quality bonds generally underperformed the municipal
market as a whole for the first time in several years. As of September 30, 2007,
bonds rated BBB or lower and non-rated bonds accounted for 4% of these Funds'
portfolios. Generally, any bonds that carried credit risk, regardless of sector,
tended to underperform during this period. Revenue bonds in general, and
specifically the industrial development and health care sectors that had ranked
among the top performers in the Lehman Brothers
9
Municipal Bond Index over the past few years, underperformed the general
municipal market for this period. Bonds backed by the 1998 master tobacco
settlement agreement also performed poorly during this period, due to the
overall lower credit quality of the tobacco sector as well as the current ample
supply and projected new issuance of these bonds. As of September 30, 2007, NKO
and NRK held approximately 2% to 3% of their portfolios in lower-rated tobacco
bonds.
Sectors of the market that performed well during this period included
transportation, water and sewer, and special tax-backed issues. Pre-refunded
bonds, especially those that were advance refunded before longer municipal
interest rates began to rise in mid-2007, also performed well during this
period.
10
Dividend and Share Price
INFORMATION
As previously noted, all of these Funds use leverage to potentially enhance
opportunities for additional income for common shareholders. Although the Funds'
use of this strategy continued to provide incremental income, the extent of this
benefit was reduced during this period due to short-term interest rates that
remained relatively high, which--in turn--kept the Funds' borrowing costs high.
The Funds' income streams were also impacted as the proceeds from older,
higher-yielding bonds that matured or were called were reinvested into bonds
currently available in the market, which generally offered lower yields during
the majority of this period. These factors resulted in a single monthly dividend
reduction in NVN, NNF, and NKO and two reductions in NUN over the twelve-month
period ended September 30, 2007. The dividends of NQN and NRK remained stable
throughout this reporting period.
Due to capital gains generated by normal portfolio activity, common shareholders
of these Funds received capital gains and/or net ordinary income distributions
at the end of December 2006 as follows:
Short-Term Capital Gains
Long-Term Capital Gains and/or Ordinary Income
(per share) (per share)
NQN $0.0711 $0.0018
NVN $0.0322 --
NUN $0.0395 $0.0007
NNF $0.0355 --
NKO $0.0105 --
NRK $0.0097 --
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,
11
pay all of its net investment income as dividends to shareholders. As of
September 30, 2007, all of the Funds in this report except NQN had positive UNII
balances for tax purposes and negative UNII balances for financial statement
purposes. NQN had positive UNII balances for both financial statement and tax
purposes.
SHARE REPURCHASE AND SHARE PRICE INFORMATION
On July 10, 2007, the Funds' Board of Directors/Trustees approved an open market
share repurchase program, as part of a broad, ongoing effort designed to support
the market prices of the Funds' common shares. Repurchases not only help to
support the market price but, because such purchases are made at a discount to
NAV, they have the effect of augmenting NAV. Under the terms of the program,
each Fund may repurchase up to 10% of its outstanding common shares. As of
September 30, 2007, NQN had repurchased 97,300 common shares, NVN had
repurchased 118,800 common shares and NUN had repurchased 171,600 common shares.
As of September 30, 2007, the Fund's share prices were trading at discounts to
their NAVs as shown in the accompanying chart:
9/30/07 Twelve-Month Average
Discount Discount
NQN -7.24% - 6.26%
NVN -7.48% - 5.48%
NUN -8.99% - 6.99%
NNF -9.01% - 6.10%
NKO -5.75% - 2.65%
NRK -6.21% - 4.25%
12
NQN
Performance
OVERVIEW
Nuveen New York
Investment Quality
Municipal Fund, Inc.
as of September 30, 2007
Pie Chart:
Credit Quality (as a % of total investments)
Insured 91%
U.S. Guaranteed 8%
FHA/FNMA/ GNMA Guaranteed 1%
Bar Chart:
2006-2007 Monthly Tax-Free Dividends Per Share2
Oct 0.0555
Nov 0.0555
Dec 0.0555
Jan 0.0555
Feb 0.0555
Mar 0.0555
Apr 0.0555
May 0.0555
Jun 0.0555
Jul 0.0555
Aug 0.0555
Sep 0.0555
Line Chart:
Share Price Performance -- Weekly Closing Price
10/01/06 14.03
13.9603
13.89
13.8
13.83
13.9
14.02
14
13.9905
14.24
14.21
13.93
13.95
13.99
14.08
14.07
14.03
14.03
14.07
14.18
14.07
14.04
14.23
14.259
14.35
14.43
14.21
14.34
14.34
14.28
14.4
14.41
14.44
14.28
14.13
14.01
13.84
13.48
13.6
13.56
13.57
13.45
13.56
13.54
13.61
13.62
13.5
13.8
13.83
13.89
13.85
13.58
9/30/07 13.7
FUND SNAPSHOT
------------------------------------
Common Share Price $13.70
------------------------------------
Common Share
Net Asset Value $14.77
------------------------------------
Premium/(Discount) to NAV -7.24%
------------------------------------
Market Yield 4.86%
------------------------------------
Taxable-Equivalent Yield1 7.24%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $260,224
------------------------------------
Average Effective
Maturity on Securities (Years) 15.83
------------------------------------
Leverage-Adjusted Duration 8.12
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/20/90)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 3.22% 2.22%
------------------------------------
5-Year 4.67% 4.48%
------------------------------------
10-Year 4.15% 6.19%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 32.1%
------------------------------------
Health Care 15.8%
------------------------------------
Transportation 11.6%
------------------------------------
Tax Obligation/General 10.1%
------------------------------------
Education and Civic
Organizations 8.9%
------------------------------------
U.S. Guaranteed 8.0%
------------------------------------
Utilities 5.2%
------------------------------------
Other 8.3%
------------------------------------
1 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 combined federal and state income tax rate of 32.9%.
When comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains and net ordinary income distributions
in December 2006 of $0.0729 per share.
13
NVN
Performance
OVERVIEW
Nuveen New York
Select Quality
Municipal Fund, Inc.
as of September 30, 2007
Pie Chart:
Credit Quality (as a % of total investments)
Insured 88%
U.S. Guaranteed 12%
Bar Chart:
2006-2007 Monthly Tax-Free Dividends Per Share2
Oct 0.0595
Nov 0.0595
Dec 0.0595
Jan 0.0595
Feb 0.0595
Mar 0.0595
Apr 0.0595
May 0.0595
Jun 0.0565
Jul 0.0565
Aug 0.0565
Sep 0.0565
Line Chart:
Share Price Performance -- Weekly Closing Price
10/01/06 14.35
14.4
14.2
14.2051
14.3
14.42
14.61
14.56
14.59
14.7
14.51
14.45
14.39
14.43
14.45
14.44
14.65
14.58
14.75
14.87
14.59
14.58
14.73
14.84
14.83
14.9
14.84
14.9
14.63
14.64
14.55
14.69
14.52
14.46
14.35
14.34
14.11
13.83
13.71
13.71
13.75
13.6
13.58
13.7
13.95
13.75
13.71
13.89
14.05
14.16
13.99
13.7
9/30/07 13.86
FUND SNAPSHOT
------------------------------------
Common Share Price $13.86
------------------------------------
Common Share
Net Asset Value $14.98
------------------------------------
Premium/(Discount) to NAV -7.48%
------------------------------------
Market Yield 4.89%
------------------------------------
Taxable-Equivalent Yield1 7.29%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $349,388
------------------------------------
Average Effective
Maturity on Securities (Years) 16.10
------------------------------------
Leverage-Adjusted Duration 8.45
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/22/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 1.70% 1.75%
------------------------------------
5-Year 4.52% 4.66%
------------------------------------
10-Year 4.77% 5.98%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 31.8%
------------------------------------
Health Care 12.8%
------------------------------------
U.S. Guaranteed 12.4%
------------------------------------
Tax Obligation/General 10.7%
------------------------------------
Education and Civic
Organizations 8.9%
------------------------------------
Transportation 7.3%
------------------------------------
Utilities 7.3%
------------------------------------
Other 8.8%
------------------------------------
1 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 combined federal and state income tax rate of 32.9%.
When comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2006 of
$0.0322 per share
14
NUN
Performance
OVERVIEW
Nuveen New York
Quality Income
Municipal Fund, Inc.
as of September 30, 2007
Pie Chart:
Credit Quality (as a % of total investments)
Insured 87%
U.S. Guaranteed 12%
FHA/FNMA/ GNMA Guaranteed 1%
Bar Chart:
2006-2007 Monthly Tax-Free Dividends Per Share2
Oct 0.0565
Nov 0.0565
Dec 0.0565
Jan 0.0565
Feb 0.0565
Mar 0.054
Apr 0.054
May 0.054
Jun 0.051
Jul 0.051
Aug 0.051
Sep 0.051
Line Chart:
Share Price Performance -- Weekly Closing Price
10/01/06 14.07
14.07
13.9
13.9
13.99
14.06
14.09
14.01
14.01
14.15
14.22
14.05
14.06
14.05
14.03
13.98
14.005
14.07
14.13
14.22
14.12
14.08
14.19
14.3
14.23
14.29
14.36
14.33
14.2
14.1
14.12
14.1
14.06
13.98
13.77
13.86
13.7001
13.28
13.27
13.45
13.45
13.42
13.43
13.6
13.65
13.43
13.2
13.3
13.35
13.53
13.55
13.41
9/30/07 13.46
FUND SNAPSHOT
------------------------------------
Common Share Price $13.46
------------------------------------
Common Share
Net Asset Value $14.79
------------------------------------
Premium/(Discount) to NAV -8.99%
------------------------------------
Market Yield 4.55%
------------------------------------
Taxable-Equivalent Yield1 6.78%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $353,564
------------------------------------
Average Effective
Maturity on Securities (Years) 15.69
------------------------------------
Leverage-Adjusted Duration 8.81
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/20/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 0.21% 1.81%
------------------------------------
5-Year 4.20% 4.42%
------------------------------------
10-Year 4.69% 5.78%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 32.3%
------------------------------------
U.S. Guaranteed 12.2%
------------------------------------
Education and Civic
Organizations 11.0%
------------------------------------
Health Care 11.0%
------------------------------------
Transportation 10.4%
------------------------------------
Tax Obligation/General 9.0%
------------------------------------
Utilities 6.8%
------------------------------------
Other 7.3%
------------------------------------
1 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 combined federal and state income tax rate of 32.9%.
When comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains and net ordinary income distributions
in December 2006 of $0.0402 per share.
15
NNF
Performance
OVERVIEW
Nuveen Insured New York
Premium Income
Municipal Fund, Inc.
as of September 30, 2007
Pie Chart:
Credit Quality (as a % of total investments)
Insured 92%
U.S. Guaranteed 8%
Bar Chart:
2006-2007 Monthly Tax-Free Dividends Per Share2
Oct 0.057
Nov 0.057
Dec 0.057
Jan 0.057
Feb 0.057
Mar 0.057
Apr 0.057
May 0.057
Jun 0.054
Jul 0.054
Aug 0.054
Sep 0.054
Line Chart:
Share Price Performance -- Weekly Closing Price
10/01/06 14.28
14.01
14.05
14.03
14.13
14.28
14.29
14.26
14.35
14.34
14.35
14.17
14.12
14.14
14.3
14.29
14.41
14.3
14.35
14.3
14.2
14.34
14.37
14.48
14.59
14.74
14.58
14.55
14.53
14.61
14.61
14.74
14.61
14.39
14.19
14.38
13.96
13.5
13.51
13.7
13.66
13.7
13.71
13.62
13.62
13.57
13.4
13.47
13.61
13.91
13.9
13.7
9/30/07 13.54
FUND SNAPSHOT
------------------------------------
Common Share Price $13.54
------------------------------------
Common Share
Net Asset Value $14.88
------------------------------------
Premium/(Discount) to NAV -9.01%
------------------------------------
Market Yield 4.79%
------------------------------------
Taxable-Equivalent Yield1 7.14%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $123,956
------------------------------------
Average Effective
Maturity on Securities (Years) 15.98
------------------------------------
Leverage-Adjusted Duration 8.40
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/17/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -0.20% 1.85%
------------------------------------
5-Year 3.05% 4.38%
------------------------------------
10-Year 5.16% 5.89%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 32.6%
------------------------------------
Health Care 15.1%
------------------------------------
Education and Civic
Organizations 12.9%
------------------------------------
Transportation 9.6%
------------------------------------
Tax Obligation/General 8.3%
------------------------------------
U.S. Guaranteed 8.0%
------------------------------------
Water and Sewer 5.5%
------------------------------------
Other 8.0%
------------------------------------
1 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 combined federal and state income tax rate of 32.9%.
When comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2006 of
$0.0355 per share.
16
NKO
Performance
OVERVIEW
Nuveen Insured New York
Dividend Advantage
Municipal Fund
as of September 30, 2007
Pie Chart:
Credit Quality (as a % of total investments)
Insured 82%
U.S. Guaranteed 9%
FHA/FNMA/GNMA Guaranteed 2%
AA (Uninsured) 3%
BBB (Uninsured) 4%
Bar Chart:
2006-2007 Monthly Tax-Free Dividends Per Share2
Oct 0.0615
Nov 0.0615
Dec 0.0615
Jan 0.0615
Feb 0.0615
Mar 0.0615
Apr 0.0615
May 0.0615
Jun 0.058
Jul 0.058
Aug 0.058
Sep 0.058
Line Chart:
Share Price Performance -- Weekly Closing Price
10/01/06 14.85
14.81
14.44
14.32
14.51
14.68
14.54
14.64
14.7
14.85
14.95
14.76
15.05
14.92
14.85
15.17
15.06
15.05
15.04
14.78
15.22
15.45
15.29
15.6
15.38
15.37
15.49
15.55
15.43
15.175
15.2699
15.15
15.27
15.01
15.08
15.18
14.44
14.15
14.2
14.11
14.27
14.25
13.99
13.75
13.94
13.96
13.47
13.7
14.26
14.39
14.28
14.07
9/30/07 14.1
FUND SNAPSHOT
------------------------------------
Common Share Price $14.10
------------------------------------
Common Share
Net Asset Value $14.96
------------------------------------
Premium/(Discount) to NAV -5.75%
------------------------------------
Market Yield 4.94%
------------------------------------
Taxable-Equivalent Yield1 7.36%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $119,131
------------------------------------
Average Effective
Maturity on Securities (Years) 16.44
------------------------------------
Leverage-Adjusted Duration 7.74
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -0.21% 2.36%
------------------------------------
5-Year 4.66% 5.05%
------------------------------------
Since
Inception 5.17% 6.94%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 27.1%
------------------------------------
Health Care 15.8%
------------------------------------
Education and Civic
Organizations 11.3%
------------------------------------
Tax Obligation/General 9.4%
------------------------------------
U.S. Guaranteed 9.3%
------------------------------------
Transportation 8.4%
------------------------------------
Utilities 8.1%
------------------------------------
Other 10.6%
------------------------------------
1 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 combined federal and state income tax rate of 32.9%.
When comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2006 of
$0.0105 per share.
17
NRK
Performance
OVERVIEW
Nuveen Insured New York
Tax-Free Advantage
Municipal Fund
as of September 30, 2007
Pie Chart:
Credit Quality (as a % of total investments)
Insured 73%
U.S. Guaranteed 17%
FHA/FNMA/GNMA Guaranteed 1%
AA (Uninsured) 4%
A (Uninsured) 1%
BBB (Uninsured) 4%
Bar Chart:
2006-2007 Monthly Tax-Free Dividends Per Share2
Oct 0.0545
Nov 0.0545
Dec 0.0545
Jan 0.0545
Feb 0.0545
Mar 0.0545
Apr 0.0545
May 0.0545
Jun 0.0545
Jul 0.0545
Aug 0.0545
Sep 0.0545
Line Chart:
Share Price Performance -- Weekly Closing Price
10/01/06 14.11
14.01
13.85
13.91
14.17
14.14
14.17
13.96
14
14.2
14.45
14.29
14.02
14.3199
14.25
14
13.9
14.17
14.4399
14.72
14.7375
14.58
14.59
14.83
14.83
14.85
14.94
14.89
14.67
14.5
14.69
14.3225
14.29
14.4
14.2
14.2
13.9
13.65
13.76
13.73
13.59
13.68
13.5
13.4
13.46
13.71
13.32
13.39
13.95
14.05
13.75
13.65
9/30/07 13.74
FUND SNAPSHOT
------------------------------------
Common Share Price $13.74
------------------------------------
Common Share
Net Asset Value $14.65
------------------------------------
Premium/(Discount) to NAV -6.21%
------------------------------------
Market Yield 4.76%
------------------------------------
Taxable-Equivalent Yield1 7.09%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $51,479
------------------------------------
Average Effective
Maturity on Securities (Years) 14.09
------------------------------------
Leverage-Adjusted Duration 8.70
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/21/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 2.24% 2.69%
------------------------------------
Since
Inception 3.62% 5.74%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 29.9%
------------------------------------
U.S. Guaranteed 17.8%
------------------------------------
Health Care 15.8%
------------------------------------
Education and Civic
Organizations 13.4%
------------------------------------
Transportation 8.2%
------------------------------------
Tax Obligation/General 6.2%
------------------------------------
Utilities 5.9%
------------------------------------
Other 2.8%
------------------------------------
1 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 combined federal and state income tax rate of 32.9%.
When comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2006 of
$0.0097 per share.
18
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
THE BOARDS OF DIRECTORS/TRUSTEES AND SHAREHOLDERS
NUVEEN NEW YORK INVESTMENT QUALITY MUNICIPAL FUND, INC.
NUVEEN NEW YORK SELECT QUALITY MUNICIPAL FUND, INC.
NUVEEN NEW YORK QUALITY INCOME MUNICIPAL FUND, INC.
NUVEEN INSURED NEW YORK PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN INSURED NEW YORK DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN INSURED NEW YORK TAX-FREE ADVANTAGE MUNICIPAL FUND
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen New York Investment Quality Municipal
Fund, Inc., Nuveen New York Select Quality Municipal Fund, Inc., Nuveen New York
Quality Income Municipal Fund, Inc., Nuveen Insured New York Premium Income
Municipal Fund, Inc., Nuveen Insured New York Dividend Advantage Municipal Fund
and Nuveen Insured New York Tax-Free Advantage Municipal Fund (the "Funds") as
of September 30, 2007, and the related statements of operations 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 periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. 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 September 30, 2007, by correspondence with the custodian
and brokers or by other applicable 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 New York Investment Quality Municipal Fund, Inc., Nuveen New York Select
Quality Municipal Fund, Inc., Nuveen New York Quality Income Municipal Fund,
Inc., Nuveen Insured New York Premium Income Municipal Fund, Inc., Nuveen
Insured New York Dividend Advantage Municipal Fund and Nuveen Insured New York
Tax-Free Advantage Municipal Fund at September 30, 2007, the results of their
operations 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 periods indicated therein in conformity with U.S. generally accepted
accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
November 20, 2007
19
NQN
Nuveen New York Investment Quality Municipal Fund, Inc.
Portfolio of INVESTMENTS
September 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 14.0% (8.9% OF TOTAL INVESTMENTS)
$ 3,500 Dormitory Authority of the State of New York, Insured Revenue 7/09 at 101.00 AAA $ 3,606,365
Bonds, Culinary Institute of America, Series 1999,
5.000%, 7/01/22 - MBIA Insured
6,500 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 AAA 6,624,995
Bonds, New York Medical College, Series 1998, 5.000%, 7/01/21 -
MBIA Insured
2,000 Dormitory Authority of the State of New York, Insured Revenue 7/11 at 100.00 AAA 2,083,560
Bonds, Yeshiva University, Series 2001, 5.000%, 7/01/18 -
AMBAC Insured
3,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AAA 3,228,540
Bonds, State University Dormitory Facilities, Series 2003B,
5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured
550 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 AAA 570,829
Barnard College, Series 2007A, 5.000%, 7/01/37 - FGIC Insured
1,150 Dormitory Authority of the State of New York, Revenue Bonds, 7/15 at 100.00 Aaa 1,207,581
Canisius College, Series 2005, 5.000%, 7/01/21 - MBIA Insured
1,765 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 1,995,333
City University of New York, Series 2005A, 5.500%, 7/01/18 -
FGIC Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Rochester Institute of Technology, Series 2006A:
575 5.250%, 7/01/20 - AMBAC Insured No Opt. Call Aaa 638,635
460 5.250%, 7/01/21 - AMBAC Insured No Opt. Call Aaa 511,327
4,500 Dormitory Authority of the State of New York, State and Local 7/15 at 100.00 AAA 4,781,295
Appropriation Lease Bonds, Upstate Community Colleges,
Series 2005A, 5.000%, 7/01/19 - FGIC Insured
1,360 New York City Industrial Development Agency, New York, 9/16 at 101.00 AAA 1,524,873
PILOT Revenue Bonds, Yankee Stadium Project, Residual
Series 07-1032, 6.250%, 3/01/39 - FGIC Insured (IF)
2,390 New York City Industrial Development Agency, New York, 1/17 at 100.00 AAA 2,449,463
PILOT Revenue Bonds, Queens Baseball Stadium Project,
Series 2006, 5.000%, 1/01/46 - AMBAC Insured
2,460 New York City Industrial Development Agency, New York, 9/16 at 100.00 AAA 2,687,452
Revenue Bonds, Yankee Stadium Pilots, Trust 2148,
6.892%, 3/01/36 - FGIC Insured (IF)
2,000 New York City Industrial Development Agency, New York, 6/15 at 100.00 AAA 2,063,520
Revenue Bonds, Ethical Culture Fieldston School,
Series 2005B-1, 5.000%, 6/01/35 - XLCA Insured
890 New York City Industrial Development Authority, New York, 9/16 at 100.00 AAA 922,049
PILOT Revenue Bonds, Yankee Stadium Project, Series 2006,
5.000%, 3/01/31 - FGIC Insured
740 New York Industrial Development Agency, Revenue Bonds, 9/16 at 100.00 AAA 793,702
Yankee Stadium, Series 2006, Residuals 1875,
6.870%, 3/01/46 - FGIC Insured (IF)
740 New York State Dormitory Authority, Revenue Bonds, 7/17 at 100.00 Aaa 770,991
New York University, Series 2007, 5.000%, 7/01/32 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
34,580 Total Education and Civic Organizations 36,460,510
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 25.0% (15.8% OF TOTAL INVESTMENTS)
675 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 692,341
Mortgage Hospital Revenue Bonds, Hospital for Special
Surgery, Series 2005, 5.000%, 8/15/33 - MBIA Insured
Dormitory Authority of the State of New York, FHA-Insured
Mortgage Hospital Revenue Bonds, Montefiore Medical Center,
Series 1999:
735 5.250%, 8/01/19 - AMBAC Insured 8/09 at 101.00 AAA 760,938
4,000 5.500%, 8/01/38 - AMBAC Insured 8/09 at 101.00 AAA 4,148,960
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 7,080 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 101.00 AAA $ 7,117,736
Mortgage Hospital Revenue Bonds, New York and Presbyterian
Hospital, Series 1998, 4.750%, 8/01/27 - AMBAC Insured
1,780 Dormitory Authority of the State of New York, FHA-Insured 8/17 at 100.00 AAA 1,858,213
Mortgage Revenue Bonds, Hudson Valley Hospital Center,
Series 2007, 5.000%, 8/15/27 (WI/DD, Settling 10/11/07) -
FSA Insured
2,575 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 2,655,392
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/29 - FGIC Insured
3,535 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 3,692,590
Revenue Bonds, Montefiore Medical Center, Series 2005,
5.000%, 2/01/22 - FGIC Insured
1,500 Dormitory Authority of the State of New York, Hospital Revenue 7/09 at 101.00 AAA 1,560,570
Bonds, Catholic Health Services of Long Island Obligated
Group - St. Francis Hospital, Series 1999A, 5.500%, 7/01/22 -
MBIA Insured
8,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 AAA 8,317,440
Catholic Health Services of Long Island Obligated Group -
St. Charles Hospital and Rehabilitation Center, Series 1999A,
5.500%, 7/01/22 - MBIA Insured
1,325 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 AAA 1,398,935
Health Quest System Inc., Series 2007B, 5.250%, 7/01/27 -
AGC Insured
6,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 6,338,700
Memorial Sloan-Kettering Cancer Center, Series 2003-1,
5.000%, 7/01/21 - MBIA Insured
2,035 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 2,206,062
New York and Presbyterian Hospital, Series 2004A,
5.250%, 8/15/15 - FSA Insured
1,805 Dormitory Authority of the State of New York, Revenue Bonds, 11/08 at 101.00 AAA 1,847,002
North Shore Health System Obligated Group, Series 1998,
5.000%, 11/01/23 - MBIA Insured
1,585 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 1,620,552
The New York and Presbyterian Hospital Project, Series 2007,
5.000%, 8/15/36 - FSA Insured
8,525 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 8,954,149
Winthrop South Nassau University Health System Obligated
Group, Series 2001B, 5.250%, 7/01/26 - AMBAC Insured
3,135 Dormitory Authority of the State of New York, Secured Hospital 2/08 at 101.50 AAA 3,196,383
Insured Revenue Bonds, Southside Hospital, Series 1998,
5.000%, 2/15/25 - MBIA Insured
2,000 New York City Health and Hospitals Corporation, New York, 2/09 at 101.00 AAA 2,055,120
Health System Revenue Bonds, Series 1999A,
5.125%, 2/15/14 - AMBAC Insured
New York City Health and Hospitals Corporation, New York, Health
System Revenue Bonds, Series 2003A:
3,150 5.250%, 2/15/21 - AMBAC Insured 2/13 at 100.00 AAA 3,334,086
2,100 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 2,222,724
935 New York State Dormitory Authority, Revenue Bonds, No Opt. Call AAA 1,047,312
North Shore Jewish Obligated Group, Series 2007A,
5.250%, 7/01/34 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
62,475 Total Health Care 65,025,205
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.1% (3.2% OF TOTAL INVESTMENTS)
New York City Housing Development Corporation, New York, Capital
Fund Program Revenue Bonds, Series 2005A:
1,230 5.000%, 7/01/14 - FGIC Insured No Opt. Call AAA 1,326,678
1,230 5.000%, 7/01/16 - FGIC Insured 7/15 at 100.00 AAA 1,324,452
5,740 7/01/25 - FGIC Insured 7/15 at 100.00 AAA 5,981,137
420 New York City, New York, Multifamily Housing Revenue Bonds, 1/17 at 100.00 AAA 397,274
Seaview Towers, Series 2006A, 4.750%, 7/15/39 -
AMBAC Insured (Alternative Minimum Tax)
35 New York State Housing Finance Agency, FHA-Insured Multifamily 2/08 at 100.00 AAA 35,057
Housing Mortgage Revenue Bonds, Series 1994B,
6.250%, 8/15/14 - AMBAC Insured
21
NQN
Nuveen New York Investment Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS September 30, (2007)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
New York State Housing Finance Agency, Mortgage Revenue
Refunding Bonds, Housing Project, Series 1996A:
$ 1,490 6.100%, 11/01/15 - FSA Insured 11/07 at 101.00 AAA $ 1,507,835
2,540 6.125%, 11/01/20 - FSA Insured 11/07 at 101.00 AAA 2,569,921
------------------------------------------------------------------------------------------------------------------------------------
12,685 Total Housing/Multifamily 13,142,354
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.0% (0.6% OF TOTAL INVESTMENTS)
2,770 Syracuse Industrial Development Authority, New York, 1/17 at 100.00 AAA 2,804,625
PILOT Mortgage Revenue Bonds, Carousel Center Project,
Series 2007A, 5.000%, 1/01/36 - XLCA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.2% (0.7% OF TOTAL INVESTMENTS)
3,000 Castle Rest Residential Healthcare Facility, Syracuse, New York, 2/08 at 102.00 AAA 3,037,590
FHA-Insured Mortgage Revenue Bonds, Series 1997A,
5.750%, 8/01/37
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 16.0% (10.1% OF TOTAL INVESTMENTS)
3,000 Dormitory Authority of the State of New York, School Districts 10/15 at 100.00 AAA 3,102,990
Revenue Bond Financing Program, Peekskill City School
District, Series 2005D, 5.000%, 10/01/33 - MBIA Insured
1,200 Erie County, New York, General Obligation Bonds, 3/13 at 100.00 Aaa 1,293,084
Series 2003A, 5.250%, 3/15/16 - FGIC Insured
635 Erie County, New York, General Obligation Bonds, Series 2004B, No Opt. Call Aaa 687,095
5.250%, 4/01/13 - MBIA Insured
2,000 Hempstead Town, New York, General Obligation Bonds, 1/11 at 101.00 Aaa 2,120,040
Series 2001A, 5.250%, 1/15/14 - MBIA Insured
10,735 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 11,054,581
Bonds, Series 2006A, 5.000%, 2/15/47 - FGIC Insured (UB)
1,000 Monroe County, New York, General Obligation Public Improvement 3/12 at 100.00 AAA 1,056,350
Bonds, Series 2002, 5.000%, 3/01/16 - FGIC Insured
New York City, New York, General Obligation Bonds, Fiscal
Series 2004E:
3,000 5.000%, 11/01/19 - FSA Insured 11/14 at 100.00 AAA 3,185,640
2,300 5.000%, 11/01/20 - FSA Insured 11/14 at 100.00 AAA 2,431,974
2,300 New York City, New York, General Obligation Bonds, Fiscal 3/15 at 100.00 AAA 2,440,668
Series 2005J, 5.000%, 3/01/19 - FGIC Insured
Oneida County, New York, General Obligation Public Improvement
Bonds, Series 2000:
500 5.375%, 4/15/18 - MBIA Insured 4/09 at 102.00 AAA 523,040
500 5.375%, 4/15/19 - MBIA Insured 4/09 at 102.00 AAA 523,040
Pavilion Central School District, Genesee County, New York,
General Obligation Bonds, Series 2005:
1,650 5.000%, 6/15/16 - FSA Insured 6/15 at 100.00 AAA 1,779,624
1,815 5.000%, 6/15/18 - FSA Insured 6/15 at 100.00 AAA 1,936,823
1,145 Three Village Central School District, Brookhaven and Smithtown, No Opt. Call Aaa 1,245,188
Suffolk County, New York, General Obligation Bonds,
Series 2005, 5.000%, 6/01/18 - FGIC Insured
1,620 West Islip Union Free School District, Suffolk County, New York, 10/15 at 100.00 Aaa 1,750,815
General Obligation Bonds, Series 2005, 5.000%, 10/01/16 -
FSA Insured
6,110 Yonkers, New York, General Obligation Bonds, Series 2005A, 8/15 at 100.00 AAA 6,578,393
5.000%, 8/01/16 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
39,510 Total Tax Obligation/General 41,709,345
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 50.8% (32.1% OF TOTAL INVESTMENTS)
1,275 Buffalo Fiscal Stability Authority, New York, Sales Tax Revenue 9/15 at 100.00 AAA 1,347,956
State Aid Secured Bonds, Series 2005A, 5.000%, 9/01/20 -
MBIA Insured
2,250 Dormitory Authority of the State of New York, 853 Schools 7/08 at 101.00 AAA 2,293,268
Program Insured Revenue Bonds, St. Anne Institute, Issue 2,
Series 1998E, 5.000%, 7/01/18 - AMBAC Insured
Dormitory Authority of the State of New York, Department of
Health Revenue Bonds, Series 2005A:
1,575 5.250%, 7/01/24 - CIFG Insured 7/15 at 100.00 AAA 1,671,107
500 5.000%, 7/01/25 - CIFG Insured 7/15 at 100.00 AAA 519,340
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 10 Dormitory Authority of the State of New York, Improvement 2/08 at 100.00 AAA $ 10,058
Revenue Bonds, Mental Health Services Facilities,
Series 1996B, 5.375%, 2/15/26 - MBIA Insured
10 Dormitory Authority of the State of New York, Improvement 2/08 at 101.00 Aaa 10,218
Revenue Bonds, Mental Health Services Facilities,
Series 1997A, 5.750%, 8/15/22 - MBIA Insured
10 Dormitory Authority of the State of New York, Improvement 8/10 at 100.00 AAA 10,617
Revenue Bonds, Mental Health Services Facilities,
Series 2000D, 5.875%, 2/15/16 - FSA Insured
25 Dormitory Authority of the State of New York, Improvement 8/11 at 100.00 AAA 26,589
Revenue Bonds, Mental Health Services Facilities,
Series 2001B, 5.500%, 8/15/19 - MBIA Insured
1,340 Dormitory Authority of the State of New York, Insured Revenue 7/09 at 101.00 AAA 1,401,988
Bonds, 853 Schools Program - Anderson School, Series 1999E,
Issue 2, 5.750%, 7/01/19 - AMBAC Insured
2,000 Dormitory Authority of the State of New York, Insured Revenue 7/09 at 101.00 AAA 2,092,520
Bonds, Special Act School District Program, Series 1999,
5.750%, 7/01/19 - MBIA Insured
1,000 Dormitory Authority of the State of New York, Lease Revenue 8/11 at 100.00 AAA 1,048,500
Bonds, Nassau County Board of Cooperative Educational
Services, Series 2001A, 5.250%, 8/15/21 - FSA Insured
1,500 Dormitory Authority of the State of New York, Lease Revenue 8/14 at 100.00 AAA 1,560,540
Bonds, Wayne-Finger Lakes Board of Cooperative Education
Services, Series 2004, 5.000%, 8/15/23 - FSA Insured
2,410 Dormitory Authority of the State of New York, Revenue Bonds, 7/14 at 100.00 AAA 2,550,310
Department of Health, Series 2004-2, 5.000%, 7/01/20 -
FGIC Insured
1,270 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 1,308,240
Mental Health Services Facilities Improvements, Series 2005B,
5.000%, 2/15/30 - AMBAC Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Mental Health Services Facilities Improvements, Series 2005D1:
2,120 5.000%, 2/15/15 - FGIC Insured No Opt. Call AAA 2,278,067
1,200 5.000%, 8/15/23 - FGIC Insured 2/15 at 100.00 AAA 1,251,432
4,600 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 AAA 4,886,488
School Districts Financing Program, Series 2002D,
5.250%, 10/01/23 - MBIA Insured
375 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 395,051
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/21 -
FSA Insured
Erie County Industrial Development Agency, New York, School
Facility Revenue Bonds, Buffalo City School District, Series 2003:
1,000 5.750%, 5/01/20 - FSA Insured 5/12 at 100.00 AAA 1,085,580
1,200 5.750%, 5/01/22 - FSA Insured 5/12 at 100.00 AAA 1,296,120
1,290 Erie County Industrial Development Agency, New York, School 5/14 at 100.00 AAA 1,433,822
Facility Revenue Bonds, Buffalo City School District,
Series 2004, 5.750%, 5/01/26 - FSA Insured
5,630 Erie County Industrial Development Agency, New York, School 5/17 at 101.00 AAA 6,308,190
Facility Revenue Bonds, Buffalo City School District Project,
Series 2007A, 5.750%, 5/01/28 - FSA Insured (UB)
6,000 Metropolitan Transportation Authority, New York, Dedicated Tax 11/12 at 100.00 AAA 6,324,540
Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA Insured
1,760 Metropolitan Transportation Authority, New York, Dedicated Tax 11/16 at 100.00 AAA 1,832,565
Fund Bonds, Series 2006, 5.000%, 11/15/31 - MBIA Insured
2,760 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA 2,972,906
Contract Bonds, Series 2002B, 5.500%, 7/01/18 - MBIA Insured
Metropolitan Transportation Authority, New York, State Service
Contract Refunding Bonds, Series 2002A:
4,500 5.750%, 7/01/18 - FSA Insured No Opt. Call AAA 5,184,855
1,250 5.500%, 1/01/19 - MBIA Insured 7/12 at 100.00 AAA 1,346,425
2,000 5.500%, 1/01/20 - MBIA Insured 7/12 at 100.00 AAA 2,152,460
2,000 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00 AAA 2,073,300
4,095 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 4,201,839
4,820 Nassau County Interim Finance Authority, New York, Sales No Opt. Call AAA 5,255,198
and Use Tax Revenue Bonds, Series 2004H, 5.250%, 11/15/13 -
AMBAC Insured
23
NQN
Nuveen New York Investment Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS September 30, (2007)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Nassau County Interim Finance Authority, New York, Sales Tax
Secured Revenue Bonds, Series 2003A:
$ 2,115 5.000%, 11/15/18 - AMBAC Insured 11/13 at 100.00 AAA $ 2,241,266
1,305 4.750%, 11/15/21 - AMBAC Insured 11/13 at 100.00 AAA 1,345,155
1,305 4.750%, 11/15/22 - AMBAC Insured 11/13 at 100.00 AAA 1,341,605
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
2,200 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 2,298,846
1,600 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 1,669,904
5,370 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 5,584,746
1,500 5.000%, 10/15/32 - AMBAC Insured 10/14 at 100.00 AAA 1,554,450
1,435 New York City Transitional Finance Authority, New York, 8/12 at 100.00 AAA 1,530,399
Future Tax Secured Bonds, Fiscal Series 2003C,
5.250%, 8/01/20 - AMBAC Insured
1,660 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 1,759,633
Future Tax Secured Bonds, Fiscal Series 2003E,
5.250%, 2/01/22 - MBIA Insured
2,000 New York City Transitional Finance Authority, New York, 2/14 at 100.00 AAA 2,121,300
Future Tax Secured Bonds, Fiscal Series 2004C,
5.000%, 2/01/19 - XLCA Insured
3,910 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 4,088,531
Future Tax Secured Refunding Bonds, Fiscal Series 2003D,
5.000%, 2/01/22 - MBIA Insured
New York Convention Center Development Corporation, Hotel
Unit Fee Revenue Bonds, Series 2005:
2,100 5.000%, 11/15/30 - AMBAC Insured 11/15 at 100.00 AAA 2,178,687
5,200 5.000%, 11/15/44 - AMBAC Insured 11/15 at 100.00 AAA 5,320,692
3,000 New York State Local Government Assistance Corporation, No Opt. Call AAA 3,273,600
Revenue Bonds, Series 1993E, 5.250%, 4/01/16 - FSA Insured
1,750 New York State Local Government Assistance Corporation, 4/08 at 101.00 AAA 1,776,880
Revenue Bonds, Series 1997B, 4.875%, 4/01/20 - MBIA Insured
New York State Thruway Authority, Highway and Bridge Trust
Fund Bonds, Second Generation, Series 2005B:
7,350 5.500%, 4/01/20 - AMBAC Insured No Opt. Call AAA 8,337,546
1,500 5.000%, 4/01/21 - AMBAC Insured 10/15 at 100.00 AAA 1,581,930
1,750 New York State Thruway Authority, State Personal Income 9/14 at 100.00 AAA 1,826,773
Tax Revenue Bonds, Series 2004A, 5.000%, 3/15/24 -
AMBAC Insured
New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
6,300 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA 6,704,145
1,000 5.250%, 6/01/21 - AMBAC Insured 6/13 at 100.00 AAA 1,062,580
4,500 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 4,774,590
1,000 New York State Urban Development Corporation, State 3/15 at 100.00 AAA 1,036,190
Personal Income Tax Revenue Bonds, Series 2005B,
5.000%, 3/15/30 - FSA Insured
1,000 Niagara Falls City School District, Niagara County, New York, 6/15 at 100.00 AAA 1,034,520
Certificates of Participation, High School Facility, Series 2005,
5.000%, 6/15/28 - FSA Insured
1,435 Suffolk County Industrial Development Agency, New York, 10/10 at 102.00 Aaa 1,557,922
Revenue Bonds, Hampton Bays Public Library, Series 1999A,
6.000%, 10/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
124,060 Total Tax Obligation/Limited 132,131,979
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 18.3% (11.6% OF TOTAL INVESTMENTS)
2,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 2,165,280
Revenue Refunding Bonds, Series 2002A, 5.500%, 11/15/19 -
AMBAC Insured
New York State Thruway Authority, General Revenue Bonds,
Series 2005F:
1,955 5.000%, 1/01/20 - AMBAC Insured 1/15 at 100.00 AAA 2,065,751
7,090 5.000%, 1/01/30 - AMBAC Insured 1/15 at 100.00 AAA 7,344,744
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 1,500 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA $ 1,561,020
Series 2005G, 5.000%, 1/01/30 - FSA Insured
2,300 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 2,372,588
Bonds, Buffalo Niagara International Airport, Series 1999A,
5.625%, 4/01/29 - MBIA Insured (Alternative Minimum Tax)
Port Authority of New York and New Jersey, Consolidated Revenue
Bonds, One Hundred Fortieth Series 2005:
2,080 5.000%, 12/01/19 - FSA Insured 6/15 at 101.00 AAA 2,221,565
2,625 5.000%, 12/01/28 - XLCA Insured 6/15 at 101.00 AAA 2,744,411
1,475 5.000%, 12/01/31 - XLCA Insured 6/15 at 101.00 AAA 1,536,227
1,160 Port Authority of New York and New Jersey, One Hundred and 8/17 at 100.00 AAA 1,320,869
Forty Eighth Consolidated Revenue Bonds, RITES Trust 1516,
6.651%, 8/15/32 - FSA Insured (IF)
5,025 Port Authority of New York and New Jersey, Special Project 12/07 at 100.00 AAA 5,040,025
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
5.750%, 12/01/25 - MBIA Insured (Alternative Minimum Tax)
Puerto Rico Ports Authority, Revenue Bonds, Series 1991D:
4,345 7.000%, 7/01/14 - FGIC Insured (Alternative Minimum Tax) 1/08 at 100.00 AAA 4,363,510
11,500 6.000%, 7/01/21 - FGIC Insured (Alternative Minimum Tax) 1/08 at 100.00 AAA 11,531,046
Triborough Bridge and Tunnel Authority, New York, Subordinate
Lien General Purpose Revenue Refunding Bonds, Series 2002E:
780 5.500%, 11/15/20 - MBIA Insured No Opt. Call AAA 888,709
2,300 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AAA 2,446,303
------------------------------------------------------------------------------------------------------------------------------------
46,135 Total Transportation 47,602,048
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 12.6% (8.0% OF TOTAL INVESTMENTS) (4)
3,655 Buffalo Municipal Water Finance Authority, New York, Water 7/09 at 101.00 AAA 3,849,117
System Revenue Bonds, Series 1999, 6.000%, 7/01/29
(Pre-refunded 7/01/09) - FSA Insured
65 Dormitory Authority of the State of New York, Improvement 8/10 at 100.00 Aaa 69,238
Revenue Bonds, Mental Health Services Facilities,
Series 2000D, 5.875%, 2/15/16 (Pre-refunded 8/15/10) -
FSA Insured
75 Dormitory Authority of the State of New York, Improvement 8/11 at 100.00 Aaa 80,410
Revenue Bonds, Mental Health Services Facilities,
Series 2001B, 5.500%, 8/15/19 (Pre-refunded 8/15/11) -
MBIA Insured
1,200 Dormitory Authority of the State of New York, Insured Revenue 7/09 at 101.00 AAA 1,267,968
Bonds, Cooper Union, Series 1999, 6.250%, 7/01/29
(Pre-refunded 7/01/09) - MBIA Insured
905 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 1,053,049
Lease Revenue Bonds, Suffolk County Issue, Series 1986,
7.375%, 7/01/16 - BIGI Insured (ETM)
1,475 Dormitory Authority of the State of New York, Revenue Bonds, 11/08 at 101.00 Aaa 1,514,014
North Shore Health System Obligated Group, Series 1998,
5.000%, 11/01/23 (Pre-refunded 11/01/08) - MBIA Insured
700 Jericho Union Free School District, Nassau County, New York, 8/09 at 101.00 Aaa 733,621
General Obligation Bonds, Series 2000, 5.600%, 8/01/18
(Pre-refunded 8/01/09) - MBIA Insured
2,500 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA 2,659,550
Revenue Bonds, Series 2001A, 5.250%, 9/01/28
(Pre-refunded 9/01/11) - FSA Insured
945 Metropolitan Transportation Authority, New York, Commuter 1/08 at 102.00 AAA 964,892
Facilities Revenue Bonds, Series 1997B, 5.000%, 7/01/20 -
AMBAC Insured (ETM)
Metropolitan Transportation Authority, New York, Dedicated Tax
Fund Bonds, Series 1998A:
5,090 5.000%, 4/01/23 (Pre-refunded 10/01/15) - FGIC Insured 10/15 at 100.00 AAA 5,556,040
7,600 4.750%, 4/01/28 (Pre-refunded 10/01/15) - FGIC Insured 10/15 at 100.00 AAA 8,165,060
1,000 Metropolitan Transportation Authority, New York, Dedicated Tax 10/14 at 100.00 AAA 1,086,360
Fund Bonds, Series 1999A, 5.000%, 4/01/29
(Pre-refunded 10/01/14) - FSA Insured
565 New York City Transitional Finance Authority, New York, 8/12 at 100.00 Aaa 607,929
Future Tax Secured Bonds, Fiscal Series 2003C,
5.250%, 8/01/20 (Pre-refunded 8/01/12) - AMBAC Insured
5,030 New York City Trust for Cultural Resources, New York, Revenue 7/09 at 101.00 AAA 5,270,585
Bonds, American Museum of Natural History, Series 1999A,
5.750%, 7/01/29 (Pre-refunded 7/01/09) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
30,805 Total U.S. Guaranteed 32,877,833
------------------------------------------------------------------------------------------------------------------------------------
25
NQN
Nuveen New York Investment Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS September 30, (2007)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.2% (5.2% OF TOTAL INVESTMENTS)
$ 2,500 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA $ 2,586,225
Revenue Bonds, Series 2001A, 5.000%, 9/01/27 - FSA Insured
2,620 Long Island Power Authority, New York, Electric System General 9/13 at 100.00 AAA 2,802,535
Revenue Bonds, Series 2003C, 5.000%, 9/01/16 - CIFG Insured
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 2006A:
4,540 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 4,786,340
6,160 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 6,453,216
625 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 AAA 644,256
Revenue Bonds, Series 2006B, 5.000%, 12/01/35 -
CIFG Insured
2,000 New York State Energy Research and Development Authority, 9/08 at 102.00 AAA 2,072,360
Pollution Control Revenue Bonds, Rochester Gas and Electric
Corporation, Series 1998A, 5.950%, 9/01/33 - MBIA Insured
(Alternative Minimum Tax)
Power Authority of the State of New York, General Revenue
Bonds, Series 2006A:
1,140 5.000%, 11/15/18 - FGIC Insured 11/15 at 100.00 AAA 1,220,039
760 5.000%, 11/15/19 - FGIC Insured 11/15 at 100.00 AAA 808,693
------------------------------------------------------------------------------------------------------------------------------------
20,345 Total Utilities 21,373,664
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.0% (3.8% OF TOTAL INVESTMENTS)
1,660 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 1,778,009
Water and Sewerage System Revenue Bonds, Fiscal
Series 2000B, 6.100%, 6/15/31 - MBIA Insured
3,000 New York City Municipal Water Finance Authority, New York, 6/14 at 100.00 AAA 3,085,020
Water and Sewerage System Revenue Bonds, Fiscal
Series 2004C, 5.000%, 6/15/35 - AMBAC Insured
5,030 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA 5,243,674
Water and Sewerage System Revenue Bonds, Fiscal
Series 2005C, 5.000%, 6/15/27 - MBIA Insured
5,200 Suffolk County Water Authority, New York, Waterworks 6/15 at 100.00 AAA 5,413,096
Revenue Bonds, Series 2005C, 5.000%, 6/01/28 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
14,890 Total Water and Sewer 15,519,799
------------------------------------------------------------------------------------------------------------------------------------
$ 391,255 Total Investments (cost $399,092,377) - 158.2% 411,684,952
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.2)% (10,910,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 3,449,105
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.3)% (144,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 260,224,057
====================================================================================================================
All of the bonds in the Portfolio of Investments are either
covered by Original Issue Insurance, Secondary Market
Insurance or Portfolio Insurance, or are backed by an escrow
or trust containing sufficient U.S. Government or U.S.
Government agency securities, any of which ensure the timely
payment of principal and interest.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest.
WI/DD Purchased on a when-issued or delayed delivery basis. (ETM)
Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
26
NVN
Nuveen New York Select Quality Municipal Fund, Inc.
Portfolio of INVESTMENTS
September 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 14.1% (8.9% OF TOTAL INVESTMENTS)
$ 500 Amherst Industrial Development Agency, New York, Revenue 8/10 at 102.00 AAA $ 536,055
Bonds, UBF Faculty/Student Housing Corporation, University
of Buffalo Lakeside Cottage Project, Series 2000B,
5.625%, 8/01/20 - AMBAC Insured
Amherst Industrial Development Agency, New York, Revenue Bonds,
UBF Faculty/Student Housing Corporation, University of Buffalo
Project, Series 2000A:
1,315 5.625%, 8/01/20 - AMBAC Insured 8/10 at 102.00 AAA 1,409,825
610 5.750%, 8/01/25 - AMBAC Insured 8/10 at 102.00 AAA 652,682
2,500 Dormitory Authority of the State of New York, General Revenue No Opt. Call AAA 2,889,950
Bonds, New York University, Series 2001-1, 5.500%, 7/01/40 -
AMBAC Insured
105 Dormitory Authority of the State of New York, Insured Revenue 1/08 at 100.00 AAA 105,309
Bonds, Fordham University, Series 1990, 7.200%, 7/01/15 -
AMBAC Insured
695 Dormitory Authority of the State of New York, Insured Revenue 7/12 at 100.00 AAA 729,562
Bonds, Fordham University, Series 2002, 5.000%, 7/01/18 -
FGIC Insured
4,340 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 Aaa 4,423,458
Bonds, Ithaca College, Series 1998, 5.000%, 7/01/21 -
AMBAC Insured
Dormitory Authority of the State of New York, Insured Revenue
Bonds, New York University, Series 2001-2:
1,350 5.500%, 7/01/18 - AMBAC Insured 7/11 at 100.00 AAA 1,436,157
800 5.500%, 7/01/20 - AMBAC Insured 7/11 at 100.00 AAA 851,056
600 5.500%, 7/01/21 - AMBAC Insured 7/11 at 100.00 AAA 638,292
2,125 Dormitory Authority of the State of New York, Insured Revenue 7/11 at 100.00 AAA 2,213,783
Bonds, Yeshiva University, Series 2001, 5.000%, 7/01/19 -
AMBAC Insured
2,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AAA 2,152,360
Bonds, State University Dormitory Facilities, Series 2003B,
5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured
735 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 AAA 762,834
Barnard College, Series 2007A, 5.000%, 7/01/37 - FGIC Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Canisius College, Series 2000:
1,000 5.100%, 7/01/20 - MBIA Insured 7/11 at 101.00 AAA 1,054,510
2,875 5.250%, 7/01/30 - MBIA Insured 7/11 at 101.00 AAA 3,019,728
2,000 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 2,261,000
City University of New York, Series 2005A, 5.500%, 7/01/18 -
FGIC Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Rochester Institute of Technology, Series 2006A:
775 5.250%, 7/01/20 - AMBAC Insured No Opt. Call Aaa 860,769
620 5.250%, 7/01/21 - AMBAC Insured No Opt. Call Aaa 689,180
1,000 Nassau County Industrial Development Agency, New York, 7/08 at 102.00 AAA 1,028,990
Revenue Refunding Bonds, Hofstra University, Series 1998,
5.000%, 7/01/23 - MBIA Insured
7,250 New York City Industrial Development Agency, New York, 1/09 at 101.00 AAA 7,373,975
Civic Facility Revenue Bonds, Horace Mann School,
Series 1998, 5.000%, 7/01/28 - MBIA Insured
1,825 New York City Industrial Development Agency, New York, 9/16 at 101.00 AAA 2,046,245
PILOT Revenue Bonds, Yankee Stadium Project, Residual
Series 07-1032, 6.250%, 3/01/39 - FGIC Insured (IF)
27
NVN
Nuveen New York Select Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS September 30, (2007)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
New York City Industrial Development Agency, New York, PILOT
Revenue Bonds, Queens Baseball Stadium Project, Series 2006:
$ 2,000 5.000%, 1/01/36 - AMBAC Insured 1/17 at 100.00 AAA $ 2,063,420
3,200 5.000%, 1/01/46 - AMBAC Insured 1/17 at 100.00 AAA 3,279,616
3,245 New York City Industrial Development Agency, New York, Revenue 9/16 at 100.00 AAA 3,545,033
Bonds, Yankee Stadium Pilots, Trust 2148, 6.892%, 3/01/36 -
FGIC Insured (IF)
1,195 New York City Industrial Development Authority, New York, 9/16 at 100.00 AAA 1,238,032
PILOT Revenue Bonds, Yankee Stadium Project, Series 2006,
5.000%, 3/01/31 - FGIC Insured
990 New York Industrial Development Agency, Revenue Bonds, 9/16 at 100.00 AAA 1,061,844
Yankee Stadium, Series 2006, Residuals 1875,
6.870%, 3/01/46 - FGIC Insured (IF)
995 New York State Dormitory Authority, Revenue Bonds, New York 7/17 at 100.00 Aaa 1,036,671
University, Series 2007, 5.000%, 7/01/32 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
46,645 Total Education and Civic Organizations 49,360,336
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 20.3% (12.8% OF TOTAL INVESTMENTS)
740 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 759,011
Mortgage Hospital Revenue Bonds, Hospital for Special
Surgery, Series 2005, 5.000%, 8/15/33 - MBIA Insured
5,995 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 102.00 AAA 6,122,034
Mortgage Hospital Revenue Bonds, Millard Fillmore Hospitals,
Series 1997, 5.375%, 2/01/32 - AMBAC Insured
5,730 Dormitory Authority of the State of New York, FHA-Insured 8/09 at 101.00 AAA 5,943,385
Mortgage Hospital Revenue Bonds, Montefiore Medical
Center, Series 1999, 5.500%, 8/01/38 - AMBAC Insured
3,000 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 101.00 AAA 3,015,990
Mortgage Hospital Revenue Bonds, New York and Presbyterian
Hospital, Series 1998, 4.750%, 8/01/27 - AMBAC Insured
2,385 Dormitory Authority of the State of New York, FHA-Insured 8/17 at 100.00 AAA 2,489,797
Mortgage Revenue Bonds, Hudson Valley Hospital Center,
Series 2007, 5.000%, 8/15/27 (WI/DD, Settling 10/11/07) -
FSA Insured
2,655 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 2,737,889
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/29 - FGIC Insured
6,500 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 102.00 AAA 6,662,305
Mortgage Revenue Refunding Bonds, United Health Services,
Series 1997, 5.375%, 8/01/27 - AMBAC Insured
1,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,044,580
Revenue Bonds, Montefiore Medical Center, Series 2005,
5.000%, 2/01/22 - FGIC Insured
6,430 Dormitory Authority of the State of New York, Hospital Revenue 7/09 at 101.00 AAA 6,687,393
Bonds, Catholic Health Services of Long Island Obligated Group -
St. Francis Hospital, Series 1999A, 5.500%, 7/01/24 - MBIA
Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Health Quest System Inc., Series 2007B:
955 5.250%, 7/01/27 - AGC Insured 7/17 at 100.00 AAA 1,008,289
825 5.125%, 7/01/37 - AGC Insured 7/17 at 100.00 AAA 849,849
Dormitory Authority of the State of New York, Revenue Bonds,
Memorial Sloan-Kettering Cancer Center, Series 2003-1:
2,500 5.000%, 7/01/21 - MBIA Insured 7/13 at 100.00 AAA 2,641,125
3,210 5.000%, 7/01/22 - MBIA Insured 7/13 at 100.00 AAA 3,356,633
2,820 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 3,057,049
New York and Presbyterian Hospital, Series 2004A,
5.250%, 8/15/15 - FSA Insured
2,120 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 2,167,552
The New York and Presbyterian Hospital Project, Series 2007,
5.000%, 8/15/36 - FSA Insured
12,020 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 12,625,086
Winthrop South Nassau University Health System Obligated
Group, Series 2001A, 5.250%, 7/01/26 - AMBAC Insured
2,025 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 2,126,939
Winthrop South Nassau University Health System Obligated
Group, Series 2001B, 5.250%, 7/01/31 - AMBAC Insured
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
New York City Health and Hospitals Corporation, New York, Health
System Revenue Bonds, Series 2003A:
$ 2,800 5.250%, 2/15/21 - AMBAC Insured 2/13 at 100.00 AAA $ 2,963,632
3,065 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 3,244,119
1,235 New York State Dormitory Authority, Revenue Bonds, North Shore No Opt. Call AAA 1,383,348
Jewish Obligated Group, Series 2007A, 5.250%, 7/01/34 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
68,010 Total Health Care 70,886,005
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.7% (2.9% OF TOTAL INVESTMENTS)
New York City Housing Development Corporation, New York, Capital
Fund Program Revenue Bonds, Series 2005A:
1,470 5.000%, 7/01/14 - FGIC Insured No Opt. Call AAA 1,585,542
1,470 5.000%, 7/01/16 - FGIC Insured 7/15 at 100.00 AAA 1,582,881
5,445 7/01/25 - FGIC Insured 7/15 at 100.00 AAA 5,673,744
2,655 New York City Housing Development Corporation, New York, 10/07 at 105.00 AAA 2,793,360
Multifamily Housing Revenue Bonds, Pass-Through Certificates,
Series 1991C, 6.500%, 2/20/19 - AMBAC Insured
540 New York City, New York, Multifamily Housing Revenue Bonds, 1/17 at 100.00 AAA 510,781
Seaview Towers, Series 2006A, 4.750%, 7/15/39 -
AMBAC Insured (Alternative Minimum Tax)
New York State Housing Finance Agency, Mortgage Revenue
Refunding Bonds, Housing Project, Series 1996A:
755 6.100%, 11/01/15 - FSA Insured 11/07 at 101.00 AAA 764,037
3,380 6.125%, 11/01/20 - FSA Insured 11/07 at 101.00 AAA 3,419,816
------------------------------------------------------------------------------------------------------------------------------------
15,715 Total Housing/Multifamily 16,330,161
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.1% (0.7% OF TOTAL INVESTMENTS)
3,715 Syracuse Industrial Development Authority, New York, 1/17 at 100.00 AAA 3,761,438
PILOT Mortgage Revenue Bonds, Carousel Center Project,
Series 2007A, 5.000%, 1/01/36 - XLCA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.4% (1.5% OF TOTAL INVESTMENTS)
2,000 Babylon Industrial Development Agency, New York, Revenue 8/09 at 101.00 AAA 2,099,740
Bonds, WSNCHS East Inc., Series 2000B, 6.000%, 8/01/24 -
MBIA Insured
6,000 Dormitory Authority of the State of New York, FHA-Insured 8/11 at 101.00 AAA 6,233,040
Nursing Home Mortgage Revenue Bonds, Norwegian Christian
Home and Health Center, Series 2001, 5.200%, 8/01/36 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,000 Total Long-Term Care 8,332,780
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 17.0% (10.7% OF TOTAL INVESTMENTS)
1,500 Erie County, New York, General Obligation Bonds, Series 2003A, 3/13 at 100.00 Aaa 1,616,355
5.250%, 3/15/16 - FGIC Insured
745 Erie County, New York, General Obligation Bonds, Series 2004B, No Opt. Call Aaa 806,120
5.250%, 4/01/13 - MBIA Insured
2,000 Erie County, New York, General Obligation Bonds, Series 2005A, 12/15 at 100.00 AAA 2,141,060
5.000%, 12/01/18 - MBIA Insured
14,405 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 14,833,837
Bonds, Series 2006A, 5.000%, 2/15/47 - FGIC Insured (UB)
45 New York City, New York, General Obligation Bonds, Fiscal 2/08 at 100.00 AAA 45,097
Series 1992C, 6.250%, 8/01/10 - FSA Insured
New York City, New York, General Obligation Bonds, Fiscal
Series 1998H:
3,780 5.125%, 8/01/25 - MBIA Insured 8/08 at 101.00 AAA 3,855,071
5,410 5.375%, 8/01/27 - MBIA Insured 8/08 at 101.00 AAA 5,530,318
3,920 New York City, New York, General Obligation Bonds, Fiscal 4/09 at 101.00 AAA 3,989,894
Series 1999I, 5.000%, 4/15/29 - MBIA Insured
3,000 New York City, New York, General Obligation Bonds, Fiscal 8/10 at 101.00 AAA 3,137,790
Series 2001D, 5.000%, 8/01/16 - FGIC Insured
29
NVN
Nuveen New York Select Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS September 30, (2007)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
New York City, New York, General Obligation Bonds, Fiscal
Series 2004E:
$ 3,250 5.000%, 11/01/19 - FSA Insured 11/14 at 100.00 AAA $ 3,451,110
1,650 5.000%, 11/01/20 - FSA Insured 11/14 at 100.00 AAA 1,744,677
2,900 New York City, New York, General Obligation Bonds, Fiscal 3/15 at 100.00 AAA 3,077,364
Series 2005J, 5.000%, 3/01/19 - FGIC Insured
Oneida County, New York, General Obligation Public Improvement
Bonds, Series 2000:
100 5.375%, 4/15/18 - MBIA Insured 4/09 at 102.00 AAA 104,608
100 5.375%, 4/15/19 - MBIA Insured 4/09 at 102.00 AAA 104,608
Rensselaer County, New York, General Obligation Bonds,
Series 1991:
960 6.700%, 2/15/16 - AMBAC Insured No Opt. Call AAA 1,160,851
960 6.700%, 2/15/17 - AMBAC Insured No Opt. Call AAA 1,165,642
960 6.700%, 2/15/18 - AMBAC Insured No Opt. Call AAA 1,176,086
960 6.700%, 2/15/19 - AMBAC Insured No Opt. Call AAA 1,185,523
960 6.700%, 2/15/20 - AMBAC Insured No Opt. Call AAA 1,194,547
747 6.700%, 2/15/21 - AMBAC Insured No Opt. Call AAA 937,246
Rochester, New York, General Obligation Bonds, Series 1999:
735 5.250%, 10/01/20 - MBIA Insured No Opt. Call AAA 818,378
735 5.250%, 10/01/21 - MBIA Insured No Opt. Call AAA 819,819
730 5.250%, 10/01/22 - MBIA Insured No Opt. Call AAA 814,264
730 5.250%, 10/01/23 - MBIA Insured No Opt. Call AAA 816,410
730 5.250%, 10/01/24 - MBIA Insured No Opt. Call AAA 816,344
730 5.250%, 10/01/25 - MBIA Insured No Opt. Call AAA 816,804
725 5.250%, 10/01/26 - MBIA Insured No Opt. Call AAA 813,320
2,190 Yonkers, New York, General Obligation Bonds, Series 2005B, 8/15 at 100.00 AAA 2,323,787
5.000%, 8/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
55,657 Total Tax Obligation/General 59,296,930
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 50.4% (31.8% OF TOTAL INVESTMENTS)
10 Dormitory Authority of the State of New York, Improvement 2/08 at 100.00 AAA 10,058
Revenue Bonds, Mental Health Services Facilities,
Series 1996B, 5.375%, 2/15/26 - MBIA Insured
5 Dormitory Authority of the State of New York, Improvement 2/08 at 101.00 Aaa 5,109
Revenue Bonds, Mental Health Services Facilities, Series 1997A,
5.750%, 8/15/22 - MBIA Insured
7,145 Dormitory Authority of the State of New York, Insured Revenue 7/09 at 101.00 AAA 7,475,528
Bonds, Special Act School District Program, Series 1999,
5.750%, 7/01/19 - MBIA Insured
3,610 Dormitory Authority of the State of New York, Revenue Bonds, 7/14 at 100.00 AAA 3,820,174
Department of Health, Series 2004-2, 5.000%, 7/01/20 -
FGIC Insured
2,250 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 2,317,748
Mental Health Services Facilities Improvements, Series 2005B,
5.000%, 2/15/30 - AMBAC Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Mental Health Services Facilities Improvements, Series 2005D1:
670 5.000%, 2/15/15 - FGIC Insured No Opt. Call AAA 719,955
1,715 5.000%, 8/15/23 - FGIC Insured 2/15 at 100.00 AAA 1,788,505
7,925 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 AAA 8,418,568
School Districts Financing Program, Series 2002D,
5.250%, 10/01/23 - MBIA Insured
1,090 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 1,148,282
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/21 -
FSA Insured
Erie County Industrial Development Agency, New York, School
Facility Revenue Bonds, Buffalo City School District, Series 2003:
1,230 5.750%, 5/01/20 - FSA Insured 5/12 at 100.00 AAA 1,335,263
1,225 5.750%, 5/01/22 - FSA Insured 5/12 at 100.00 AAA 1,323,123
1,700 Erie County Industrial Development Agency, New York, 5/14 at 100.00 AAA 1,889,533
School Facility Revenue Bonds, Buffalo City School District,
Series 2004, 5.750%, 5/01/26 - FSA Insured
7,545 Erie County Industrial Development Agency, New York, School 5/17 at 101.00 AAA 8,453,871
Facility Revenue Bonds, Buffalo City School District Project,
Series 2007A, 5.750%, 5/01/28 - FSA Insured (UB)
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 7,500 Metropolitan Transportation Authority, New York, Dedicated Tax 11/12 at 100.00 AAA $ 7,905,675
Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA Insured
2,015 Metropolitan Transportation Authority, New York, Dedicated Tax 11/16 at 100.00 AAA 2,098,078
Fund Bonds, Series 2006, 5.000%, 11/15/31 - MBIA Insured
4,600 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA 4,954,844
Contract Bonds, Series 2002B, 5.500%, 7/01/18 - MBIA Insured
Metropolitan Transportation Authority, New York, State Service
Contract Refunding Bonds, Series 2002A:
2,000 5.750%, 7/01/18 - FSA Insured No Opt. Call AAA 2,304,380
3,000 5.500%, 1/01/19 - MBIA Insured 7/12 at 100.00 AAA 3,231,420
5,000 5.500%, 1/01/20 - MBIA Insured 7/12 at 100.00 AAA 5,381,150
2,375 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00 AAA 2,462,044
4,050 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 4,155,665
Nassau County Interim Finance Authority, New York, Sales Tax
Secured Revenue Bonds, Series 2003A:
4,000 5.000%, 11/15/18 - AMBAC Insured 11/13 at 100.00 AAA 4,238,800
1,560 4.750%, 11/15/21 - AMBAC Insured 11/13 at 100.00 AAA 1,608,001
1,560 4.750%, 11/15/22 - AMBAC Insured 11/13 at 100.00 AAA 1,603,758
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
3,640 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 3,803,545
1,960 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 2,045,632
3,170 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 3,296,768
1,500 5.000%, 10/15/32 - AMBAC Insured 10/14 at 100.00 AAA 1,554,450
5,600 New York City Transitional Finance Authority, New York, Building 1/17 at 100.00 AAA 5,864,656
Aid Revenue Bonds, Fiscal Series 2007S-2, 5.000%, 1/15/28 -
FGIC Insured
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal Series 2002B:
2,820 5.250%, 5/01/16 - MBIA Insured 11/11 at 101.00 AAA 3,016,498
1,000 5.250%, 5/01/17 - MBIA Insured 11/11 at 101.00 AAA 1,069,680
6,680 New York City Transitional Finance Authority, New York, Future 8/12 at 100.00 AAA 7,124,086
Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/21 -
AMBAC Insured
3,160 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA 3,349,663
Tax Secured Bonds, Fiscal Series 2003E, 5.250%, 2/01/22 -
MBIA Insured
2,000 New York City Transitional Finance Authority, New York, Future 2/14 at 100.00 AAA 2,121,300
Tax Secured Bonds, Fiscal Series 2004C, 5.000%, 2/01/19 -
XLCA Insured
3,500 New York City Transitional Finance Authority, New York, Future Tax 2/13 at 100.00 AAA 3,659,810
Secured Refunding Bonds, Fiscal Series 2003D,
5.000%, 2/01/22 - MBIA Insured
New York Convention Center Development Corporation,
Hotel Unit Fee Revenue Bonds, Series 2005:
2,500 5.000%, 11/15/30 - AMBAC Insured 11/15 at 100.00 AAA 2,593,675
6,000 5.000%, 11/15/44 - AMBAC Insured 11/15 at 100.00 AAA 6,139,260
3,750 New York State Local Government Assistance Corporation, No Opt. Call AAA 4,092,000
Revenue Bonds, Series 1993E, 5.250%, 4/01/16 - FSA Insured
7,750 New York State Local Government Assistance Corporation, 4/08 at 101.00 AAA 7,869,040
Revenue Bonds, Series 1997B, 4.875%, 4/01/20 - MBIA Insured
New York State Municipal Bond Bank Agency, Buffalo, Special
Program Revenue Bonds, Series 2001A:
875 5.125%, 5/15/19 - AMBAC Insured 5/11 at 100.00 AAA 914,690
920 5.125%, 5/15/20 - AMBAC Insured 5/11 at 100.00 AAA 961,731
965 5.250%, 5/15/21 - AMBAC Insured 5/11 at 100.00 AAA 1,014,167
1,015 5.250%, 5/15/22 - AMBAC Insured 5/11 at 100.00 AAA 1,060,574
1,000 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 1,051,830
Fund Bonds, Second Generation, Series 2004, 5.000%, 4/01/22 -
MBIA Insured
31
NVN
Nuveen New York Select Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS September 30, (2007)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
New York State Thruway Authority, Highway and Bridge Trust
Fund Bonds, Second Generation, Series 2005B:
$ 8,455 5.500%, 4/01/20 - AMBAC Insured No Opt. Call AAA $ 9,591,013
1,500 5.000%, 4/01/21 - AMBAC Insured 10/15 at 100.00 AAA 1,581,930
1,000 New York State Thruway Authority, State Personal Income Tax 9/14 at 100.00 AAA 1,043,870
Revenue Bonds, Series 2004A, 5.000%, 3/15/24 -
AMBAC Insured
New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
11,100 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA 11,812,064
1,000 5.250%, 6/01/21 - AMBAC Insured 6/13 at 100.00 AAA 1,062,580
4,565 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 4,843,556
500 New York State Urban Development Corporation, State Personal 3/15 at 100.00 AAA 518,095
Income Tax Revenue Bonds, Series 2005B, 5.000%, 3/15/30 -
FSA Insured
4,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 4,533,240
Revenue Refunding Bonds, Series 2002E, 5.500%, 7/01/18 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
165,705 Total Tax Obligation/Limited 176,238,935
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.6% (7.3% OF TOTAL INVESTMENTS)
Metropolitan Transportation Authority, New York, Transportation
Revenue Refunding Bonds, Series 2002A:
6,000 5.500%, 11/15/18 - AMBAC Insured 11/12 at 100.00 AAA 6,495,840
2,000 5.125%, 11/15/22 - FGIC Insured 11/12 at 100.00 AAA 2,109,980
Metropolitan Transportation Authority, New York, Transportation
Revenue Refunding Bonds, Series 2002E:
1,335 5.500%, 11/15/21 - MBIA Insured 11/12 at 100.00 AAA 1,445,324
4,575 5.000%, 11/15/25 - MBIA Insured 11/12 at 100.00 AAA 4,745,327
New York State Thruway Authority, General Revenue Bonds,
Series 2005F:
2,625 5.000%, 1/01/20 - AMBAC Insured 1/15 at 100.00 AAA 2,773,706
2,260 5.000%, 1/01/30 - AMBAC Insured 1/15 at 100.00 AAA 2,341,202
1,650 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 1,717,122
Series 2005G, 5.000%, 1/01/30 - FSA Insured
2,500 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 2,578,900
Bonds, Buffalo Niagara International Airport, Series 1999A,
5.625%, 4/01/29 - MBIA Insured (Alternative Minimum Tax)
1,675 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AAA 1,744,529
Revenue Bonds, One Hundred Fortieth Series 2005,
5.000%, 12/01/31 - XLCA Insured
7,000 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 7,079,870
Revenue Bonds, One Hundred Twentieth Series 2000,
5.750%, 10/15/26 - MBIA Insured (Alternative Minimum Tax)
1,560 Port Authority of New York and New Jersey, One Hundred and 8/17 at 100.00 AAA 1,776,341
Forty Eighth Consolidated Revenue Bonds, RITES Trust 1516,
6.651%, 8/15/32 - FSA Insured (IF)
Triborough Bridge and Tunnel Authority, New York, Subordinate
Lien General Purpose Revenue Refunding Bonds, Series 2002E:
1,570 5.500%, 11/15/20 - MBIA Insured No Opt. Call AAA 1,788,811
3,800 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AAA
------------------------------------------------------------------------------------------------------------------------------------
38,550 Total Transportation 40,638,670
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 19.8% (12.4% OF TOTAL INVESTMENTS) (4)
2,095 Dormitory Authority of the State of New York, Lease Revenue 7/11 at 100.00 AAA 2,241,608
Bonds, State University Dormitory Facilities, Series 2001,
5.500%, 7/01/18 (Pre-refunded 7/01/11) - FGIC Insured
Dormitory Authority of the State of New York, Revenue Bonds,
University of Rochester, Series 2000A:
1,990 0.000%, 7/01/17 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 1,816,591
2,235 0.000%, 7/01/18 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 2,040,242
2,495 0.000%, 7/01/19 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 2,277,586
1,870 0.000%, 7/01/21 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 1,707,048
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 505 Dormitory Authority of the State of New York, Suffolk County, No Opt. Call Baa1 (4) $ 668,378
Lease Revenue Bonds, Judicial Facilities, Series 1991A,
9.500%, 4/15/14 (ETM)
Erie County, New York, General Obligation Bonds, Series 1999A:
700 5.500%, 10/01/17 (Pre-refunded 10/01/09) - FGIC Insured 10/09 at 101.00 AAA 734,636
700 5.250%, 10/01/19 (Pre-refunded 10/01/09) - FGIC Insured 10/09 at 101.00 AAA 731,269
4,000 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 4,087,480
Revenue Bonds, Series 1998A, 5.250%, 12/01/26
(Pre-refunded 6/01/08) - MBIA Insured
3,125 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA 3,324,438
Revenue Bonds, Series 2001A, 5.250%, 9/01/28
(Pre-refunded 9/01/11) - FSA Insured
Longwood Central School District, Suffolk County, New York,
Series 2000:
1,000 5.750%, 6/15/19 (Pre-refunded 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa 1,086,640
1,000 5.750%, 6/15/20 (Pre-refunded 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa 1,086,640
4,695 Metropolitan Transportation Authority, New York, Commuter 7/11 at 100.00 AAA 4,982,569
Facilities Revenue Bonds, Series 1998A, 5.250%, 7/01/28
(Pre-refunded 7/01/11) - FGIC Insured
11,000 Metropolitan Transportation Authority, New York, Dedicated 10/15 at 100.00 AAA 11,817,849
Tax Fund Bonds, Series 1998A, 4.750%, 4/01/28
(Pre-refunded 10/01/15) - FGIC Insured
Metropolitan Transportation Authority, New York, Dedicated Tax
Fund Bonds, Series 1999A:
4,000 5.000%, 4/01/17 (Pre-refunded 10/01/14) - FSA Insured 10/14 at 100.00 AAA 4,345,440
3,250 5.000%, 4/01/29 (Pre-refunded 10/01/14) - FSA Insured 10/14 at 100.00 AAA 3,530,670
2,330 Nassau County, North Hempstead, New York, General Obligation 3/08 at 101.00 Aaa 2,365,859
Refunding Bonds, Series 1998B, 4.750%, 3/01/18
(Pre-refunded 3/01/08) - FGIC Insured
820 New York City Transitional Finance Authority, New York, Future 8/12 at 100.00 Aaa 882,304
Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/21
(Pre-refunded 8/01/12) - AMBAC Insured
1,075 New York City Trust for Cultural Resources, New York, Revenue 7/09 at 101.00 AAA 1,126,417
Bonds, American Museum of Natural History, Series 1999A,
5.750%, 7/01/29 (Pre-refunded 7/01/09) - AMBAC Insured
New York City, New York, General Obligation Bonds, Fiscal
Series 1998H:
370 5.125%, 8/01/25 (Pre-refunded 8/01/08) - MBIA Insured 8/08 at 101.00 AAA 378,754
30 5.375%, 8/01/27 (Pre-refunded 8/01/08) - MBIA Insured 8/08 at 101.00 AAA 30,771
1,080 New York City, New York, General Obligation Bonds, Fiscal 4/09 at 101.00 AAA 1,115,618
Series 1999I, 5.000%, 4/15/29 (Pre-refunded 4/15/09) -
MBIA Insured
5,000 New York State Thruway Authority, Highway and Bridge Trust 4/12 at 100.00 AAA 5,363,050
Fund Bonds, Series 2002A, 5.250%, 4/01/19
(Pre-refunded 4/01/12) - FSA Insured
6,000 New York State Urban Development Corporation, Service 1/11 at 100.00 AAA 6,298,380
Contract Revenue Bonds, Correctional Facilities, Series 2000C,
5.125%, 1/01/23 (Pre-refunded 1/01/11) - FSA Insured
Putnam Valley Central School District, Putnam and Westchester
Counties, New York, General Obligation Bonds, Series 1999:
525 5.875%, 6/15/17 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335
525 5.875%, 6/15/18 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335
525 5.875%, 6/15/20 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335
525 5.875%, 6/15/21 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335
525 5.875%, 6/15/22 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335
525 5.875%, 6/15/23 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335
525 5.875%, 6/15/24 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335
525 5.875%, 6/15/26 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335
525 5.875%, 6/15/28 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335
------------------------------------------------------------------------------------------------------------------------------------
66,090 Total U.S. Guaranteed 69,056,252
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.6% (7.3% OF TOTAL INVESTMENTS)
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 2000A:
4,000 0.000%, 6/01/24 - FSA Insured No Opt. Call AAA 1,901,440
4,000 0.000%, 6/01/25 - FSA Insured No Opt. Call AAA 1,802,840
15,000 0.000%, 6/01/26 - FSA Insured No Opt. Call AAA 6,403,950
3,000 0.000%, 6/01/27 - FSA Insured No Opt. Call AAA 1,214,340
4,500 0.000%, 6/01/28 - FSA Insured No Opt. Call AAA 1,718,730
3,000 0.000%, 6/01/29 - FSA Insured No Opt. Call AAA 1,086,750
33
NVN
Nuveen New York Select Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS September 30, (2007)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 3,000 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA $ 3,103,470
Revenue Bonds, Series 2001A, 5.000%, 9/01/27 - FSA Insured
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 2006A:
6,010 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 6,336,103
7,735 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 8,103,186
750 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 AAA 773,108
Revenue Bonds, Series 2006B, 5.000%, 12/01/35 - CIFG Insured
6,000 New York State Energy Research and Development Authority, 9/08 at 102.00 AAA 6,217,080
Pollution Control Revenue Bonds, Rochester Gas and Electric
Corporation, Series 1998A, 5.950%, 9/01/33 - MBIA Insured
(Alternative Minimum Tax)
Power Authority of the State of New York, General Revenue Bonds,
Series 2006A:
970 5.000%, 11/15/18 - FGIC Insured 11/15 at 100.00 AAA 1,038,104
650 5.000%, 11/15/19 - FGIC Insured 11/15 at 100.00 AAA 691,646
------------------------------------------------------------------------------------------------------------------------------------
58,615 Total Utilities 40,390,747
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.8% (3.7% OF TOTAL INVESTMENTS)
1,245 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 1,333,507
Water and Sewerage System Revenue Bonds, Fiscal
Series 2000B, 6.100%, 6/15/31 - MBIA Insured
1,225 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 1,308,949
Water and Sewerage System Revenue Bonds, Fiscal
Series 2000B, 6.000%, 6/15/33 - MBIA Insured
3,000 New York City Municipal Water Finance Authority, New York, 6/14 at 100.00 AAA 3,085,020
Water and Sewerage System Revenue Bonds, Fiscal
Series 2004C, 5.000%, 6/15/35 - AMBAC Insured
5,920 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA 6,171,482
Water and Sewerage System Revenue Bonds, Fiscal
Series 2005C, 5.000%, 6/15/27 - MBIA Insured
7,100 Suffolk County Water Authority, New York, Waterworks 6/15 at 100.00 AAA 7,390,958
Revenue Bonds, Series 2005C, 5.000%, 6/01/28 -
MBIA Insured
2,230 Upper Mohawk Valley Regional Water Finance Authority, No Opt. Call Aaa 1,126,864
New York, Water System Revenue Bonds, Series 2000,
0.000%, 4/01/23 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
20,720 Total Water and Sewer 20,416,780
------------------------------------------------------------------------------------------------------------------------------------
$ 547,422 Total Investments (cost $531,280,728) - 158.8% 554,709,034
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.2)% (14,635,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.6% 2,314,201
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.2)% (193,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 349,388,235
====================================================================================================================
All of the bonds in the Portfolio of Investments are either
covered by Original Issue Insurance, Secondary Market
Insurance or Portfolio Insurance, or are backed by an escrow
or trust containing sufficient U.S. Government or U.S.
Government agency securities, any of which ensure the timely
payment of principal and interest.
The Fund may invest in "zero coupon" securities. A zero
coupon security does not pay a regular interest coupon to
its holders during the life of the security. Tax-exempt
income to the holder of the security comes from accretion of
the difference between the original purchase price of the
security at issuance and the par value of the security at
maturity and is effectively paid at maturity. Such
securities are included in the Portfolio of Investments with
a 0.000% coupon rate in their description. The market prices
of zero coupon securities generally are more volatile than
the market prices of securities that pay interest
periodically.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest. Such
investments are normally considered to be equivalent to AAA
rated securities.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
34
NUN
Nuveen New York Quality Income Municipal Fund, Inc.
Portfolio of INVESTMENTS
September 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.4% (11.0% OF TOTAL INVESTMENTS)
$ 500 Amherst Industrial Development Agency, New York, Revenue 8/10 at 102.00 AAA $ 536,055
Bonds, UBF Faculty/Student Housing Corporation, University
of Buffalo Lakeside Cottage Project, Series 2000B,
5.625%, 8/01/20 - AMBAC Insured
Amherst Industrial Development Agency, New York, Revenue Bonds,
UBF Faculty/Student Housing Corporation, University of Buffalo
Project, Series 2000A:
1,065 5.625%, 8/01/20 - AMBAC Insured 8/10 at 102.00 AAA 1,141,797
610 5.750%, 8/01/25 - AMBAC Insured 8/10 at 102.00 AAA 652,682
6,000 Dormitory Authority of the State of New York, Consolidated No Opt. Call AAA 6,462,300
Revenue Bonds, City University System, Series 1993A,
5.750%, 7/01/13 - MBIA Insured
1,000 Dormitory Authority of the State of New York, General No Opt. Call AAA 1,155,980
Revenue Bonds, New York University, Series 2001-1,
5.500%, 7/01/40 - AMBAC Insured
670 Dormitory Authority of the State of New York, Insured 7/12 at 100.00 AAA 703,319
Revenue Bonds, Fordham University, Series 2002,
5.000%, 7/01/19 - FGIC Insured
2,750 Dormitory Authority of the State of New York, Insured 7/11 at 100.00 AAA 2,841,025
Revenue Bonds, Yeshiva University, Series 2001,
5.000%, 7/01/26 - AMBAC Insured
2,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AAA 2,152,360
Bonds, State University Dormitory Facilities, Series 2003B,
5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured
745 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 AAA 773,213
Barnard College, Series 2007A, 5.000%, 7/01/37 - FGIC Insured
2,000 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 2,261,000
City University of New York, Series 2005A, 5.500%, 7/01/18 -
FGIC Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Rochester Institute of Technology, Series 2006A:
800 5.250%, 7/01/20 - AMBAC Insured No Opt. Call Aaa 888,536
640 5.250%, 7/01/21 - AMBAC Insured No Opt. Call Aaa 711,411
4,000 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 4,572,960
State University Educational Facilities, 1989 Resolution,
Series 2000C, 5.750%, 5/15/16 - FSA Insured
1,915 Dormitory Authority of the State of New York, Second General No Opt. Call AAA 2,161,365
Resolution Consolidated Revenue Bonds, City University
System, Series 1993A, 5.750%, 7/01/18 - FSA Insured
2,000 Dormitory Authority of the State of New York, Third General 7/08 at 102.00 AAA 2,054,400
Resolution Consolidated Revenue Bonds, City University
System, Series 1998-1, 5.000%, 7/01/26 - FGIC Insured
6,415 Nassau County Industrial Development Agency, New York, 7/08 at 102.00 AAA 6,600,971
Revenue Refunding Bonds, Hofstra University, Series 1998,
5.000%, 7/01/23 - MBIA Insured
4,775 New York City Industrial Development Agency, New York, 12/07 at 102.00 AAA 4,875,562
Civic Facility Revenue Bonds, Trinity Episcopal School,
Series 1997, 5.250%, 6/15/27 - MBIA Insured
1,850 New York City Industrial Development Agency, New York, 9/16 at 101.00 AAA 2,074,276
PILOT Revenue Bonds, Yankee Stadium Project, Residual
Series 07-1032, 6.250%, 3/01/39 - FGIC Insured (IF)
New York City Industrial Development Agency, New York, PILOT
Revenue Bonds, Queens Baseball Stadium Project, Series 2006:
2,000 5.000%, 1/01/36 - AMBAC Insured 1/17 at 100.00 AAA 2,063,420
3,240 5.000%, 1/01/46 - AMBAC Insured 1/17 at 100.00 AAA 3,320,611
3,280 New York City Industrial Development Agency, New York, 9/16 at 100.00 AAA 3,583,269
Revenue Bonds, Yankee Stadium Pilots, Trust 2148,
6.892%, 3/01/36 - FGIC Insured (IF)
35
NUN
Nuveen New York Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS September 30, (2007)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 1,215 New York City Industrial Development Authority, New York, 9/16 at 100.00 AAA $ 1,258,752
PILOT Revenue Bonds, Yankee Stadium Project, Series 2006,
5.000%, 3/01/31 - FGIC Insured
6,250 New York City Trust for Cultural Resources, New York, Revenue 1/08 at 101.00 AAA 6,385,063
Refunding Bonds, Museum of Modern Art, Series 1996A,
5.500%, 1/01/21 - AMBAC Insured
1,005 New York Industrial Development Agency, Revenue Bonds, 9/16 at 100.00 AAA 1,077,933
Yankee Stadium, Series 2006, Residuals 1875,
6.870%, 3/01/46 - FGIC Insured (IF)
1,005 New York State Dormitory Authority, Revenue Bonds, New York 7/17 at 100.00 Aaa 1,047,089
University, Series 2007, 5.000%, 7/01/32 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
57,730 Total Education and Civic Organizations 61,355,349
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 17.3% (11.0% OF TOTAL INVESTMENTS)
750 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 769,268
Mortgage Hospital Revenue Bonds, Hospital for Special
Surgery, Series 2005, 5.000%, 8/15/33 - MBIA Insured
3,995 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 102.00 AAA 4,079,654
Mortgage Hospital Revenue Bonds, Millard Fillmore Hospitals,
Series 1997, 5.375%, 2/01/32 - AMBAC Insured
7,000 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 101.00 AAA 7,037,310
Mortgage Hospital Revenue Bonds, New York and Presbyterian
Hospital, Series 1998, 4.750%, 8/01/27 - AMBAC Insured
2,420 Dormitory Authority of the State of New York, FHA-Insured 8/17 at 100.00 AAA 2,526,335
Mortgage Revenue Bonds, Hudson Valley Hospital Center,
Series 2007, 5.000%, 8/15/27 (WI/DD, Settling 10/11/07) -
FSA Insured
2,700 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 2,784,294
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/29 - FGIC Insured
1,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,044,580
Revenue Bonds, Montefiore Medical Center, Series 2005,
5.000%, 2/01/22 - FGIC Insured
9,000 Dormitory Authority of the State of New York, Hospital Revenue 7/09 at 101.00 AAA 9,360,270
Bonds, Catholic Health Services of Long Island Obligated
Group - St. Francis Hospital, Series 1999A, 5.500%, 7/01/24 -
MBIA Insured
1,800 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 AAA 1,854,216
Health Quest System Inc., Series 2007B, 5.125%, 7/01/37 -
AGC Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Memorial Sloan-Kettering Cancer Center, Series 2003-1:
2,500 5.000%, 7/01/21 - MBIA Insured 7/13 at 100.00 AAA 2,641,125
3,300 5.000%, 7/01/22 - MBIA Insured 7/13 at 100.00 AAA 3,450,744
2,635 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 2,856,498
New York and Presbyterian Hospital, Series 2004A,
5.250%, 8/15/15 - FSA Insured
2,150 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 2,198,225
The New York and Presbyterian Hospital Project, Series 2007,
5.000%, 8/15/36 - FSA Insured
9,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 9,453,060
Winthrop South Nassau University Health System Obligated
Group, Series 2001B, 5.250%, 7/01/31 - AMBAC Insured
New York City Health and Hospitals Corporation, New York, Health
System Revenue Bonds, Series 2003A:
2,800 5.250%, 2/15/21 - AMBAC Insured 2/13 at 100.00 AAA 2,963,632
3,065 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 3,244,119
1,265 New York State Dormitory Authority, Revenue Bonds, No Opt. Call AAA 1,416,952
North Shore Jewish Obligated Group, Series 2007A,
5.250%, 7/01/34 - FGIC Insured
3,350 New York State Medical Care Facilities Finance Agency, 2/08 at 100.00 AAA 3,414,588
FHA-Insured Mortgage Revenue Bonds, Montefiore Medical
Center, Series 1995A, 5.750%, 2/15/25 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
58,730 Total Health Care 61,094,870
------------------------------------------------------------------------------------------------------------------------------------
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.8% (2.4% OF TOTAL INVESTMENTS)
New York City Housing Development Corporation, New York, Capital
Fund Program Revenue Bonds, Series 2005A:
$ 1,500 5.000%, 7/01/14 - FGIC Insured No Opt. Call AAA $ 1,617,900
1,500 5.000%, 7/01/16 - FGIC Insured 7/15 at 100.00 AAA 1,615,185
5,515 5.000%, 7/01/25 - FGIC Insured 7/15 at 100.00 AAA 5,746,685
2,208 New York City Housing Development Corporation, New York, 10/07 at 105.00 AAA 2,323,145
Multifamily Housing Revenue Bonds, Pass-Through Certificates,
Series 1991C, 6.500%, 2/20/19 - AMBAC Insured
560 New York City, New York, Multifamily Housing Revenue Bonds, 1/17 at 100.00 AAA 529,698
Seaview Towers, Series 2006A, 4.750%, 7/15/39 - AMBAC
Insured (Alternative Minimum Tax)
45 New York State Housing Finance Agency, FHA-Insured 2/08 at 100.00 AAA 45,073
Multifamily Housing Mortgage Revenue Bonds, Series 1994B,
6.250%, 8/15/14 - AMBAC Insured
1,440 New York State Housing Finance Agency, Mortgage Revenue 11/07 at 101.00 AAA 1,456,963
Refunding Bonds, Housing Project, Series 1996A,
6.125%, 11/01/20 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
12,768 Total Housing/Multifamily 13,334,649
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.0% (0.6% OF TOTAL INVESTMENTS)
3,765 Syracuse Industrial Development Authority, New York, 1/17 at 100.00 AAA 3,812,063
PILOT Mortgage Revenue Bonds, Carousel Center Project,
Series 2007A, 5.000%, 1/01/36 - XLCA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.3% (0.8% OF TOTAL INVESTMENTS)
4,450 Castle Rest Residential Healthcare Facility, Syracuse, New York, 2/08 at 102.00 AAA 4,505,759
FHA-Insured Mortgage Revenue Bonds, Series 1997A,
5.750%, 8/01/37
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 14.2% (9.0% OF TOTAL INVESTMENTS)
1,500 Erie County, New York, General Obligation Bonds, Series 2003A, 3/13 at 100.00 Aaa 1,616,355
5.250%, 3/15/16 - FGIC Insured
805 Erie County, New York, General Obligation Bonds, Series 2004B, No Opt. Call Aaa 871,042
5.250%, 4/01/13 - MBIA Insured
14,630 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 15,065,535
Bonds, Series 2006A, 5.000%, 2/15/47 - FGIC Insured (UB)
Monroe County, New York, General Obligation Public Improvement
Bonds, Series 2002:
2,250 5.000%, 3/01/15 - FGIC Insured 3/12 at 100.00 AAA 2,376,788
1,000 5.000%, 3/01/17 - FGIC Insured 3/12 at 100.00 AAA 1,050,500
New York City, New York, General Obligation Bonds, Fiscal
Series 2001D:
5,360 5.250%, 8/01/15 - MBIA Insured 8/10 at 101.00 AAA 5,624,248
2,095 5.250%, 8/01/15 - FSA Insured 8/10 at 101.00 AAA 2,198,284
5,000 5.000%, 8/01/16 - FGIC Insured 8/10 at 101.00 AAA 5,229,650
125 New York City, New York, General Obligation Bonds, Fiscal 3/12 at 100.00 AAA 130,955
Series 2002C, 5.125%, 3/15/25 - FSA Insured
New York City, New York, General Obligation Bonds, Fiscal
Series 2004E:
3,350 5.000%, 11/01/19 - FSA Insured 11/14 at 100.00 AAA 3,557,298
1,700 5.000%, 11/01/20 - FSA Insured 11/14 at 100.00 AAA 1,797,546
4,130 New York City, New York, General Obligation Bonds, Fiscal 3/15 at 100.00 AAA 4,382,591
Series 2005J, 5.000%, 3/01/19 - FGIC Insured
Peru Central School District, Clinton County, New York, General
Obligation Refunding Bonds, Series 2002B:
1,845 4.000%, 6/15/18 - FGIC Insured 6/12 at 100.00 AAA 1,844,908
1,915 4.000%, 6/15/19 - FGIC Insured 6/12 at 100.00 AAA 1,891,963
2,305 Yonkers, New York, General Obligation Bonds, Series 2005B, 8/15 at 100.00 AAA 2,435,670
5.000%, 8/01/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
48,010 Total Tax Obligation/General 50,073,333
------------------------------------------------------------------------------------------------------------------------------------
37
NUN
Nuveen New York Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS September 30, (2007)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 50.8% (32.3% OF TOTAL INVESTMENTS)
$ 3,340 Dormitory Authority of the State of New York, 853 Schools 7/09 at 101.00 AAA $ 3,479,812
Program Insured Revenue Bonds, Harmony Heights School,
Issue 1, Series 1999C, 5.500%, 7/01/18 - AMBAC Insured
5 Dormitory Authority of the State of New York, Improvement 2/08 at 100.00 AAA 5,026
Revenue Bonds, Mental Health Services Facilities,
Series 1996B, 5.125%, 8/15/21 - MBIA Insured
5 Dormitory Authority of the State of New York, Improvement 2/08 at 101.00 Aaa 5,109
Revenue Bonds, Mental Health Services Facilities,
Series 1997A, 5.750%, 8/15/22 - MBIA Insured
195 Dormitory Authority of the State of New York, Improvement 8/10 at 100.00 AAA 202,153
Revenue Bonds, Mental Health Services Facilities,
Series 2000D, 5.250%, 8/15/30 - FSA Insured
Dormitory Authority of the State of New York, Lease Revenue
Bonds, Madison-Oneida Board of Cooperative Educational
Services, Series 2002:
1,045 5.250%, 8/15/20 - FSA Insured 8/12 at 100.00 AAA 1,112,120
1,100 5.250%, 8/15/21 - FSA Insured 8/12 at 100.00 AAA 1,170,653
1,135 5.250%, 8/15/22 - FSA Insured 8/12 at 100.00 AAA 1,203,997
3,610 Dormitory Authority of the State of New York, Revenue Bonds, 7/14 at 100.00 AAA 3,820,174
Department of Health, Series 2004-2, 5.000%, 7/01/20 -
FGIC Insured
1,490 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 1,534,864
Mental Health Services Facilities Improvements, Series 2005B,
5.000%, 2/15/30 - AMBAC Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Mental Health Services Facilities Improvements, Series 2005D1:
2,300 5.000%, 2/15/15 - FGIC Insured No Opt. Call AAA 2,471,488
1,200 5.000%, 8/15/23 - FGIC Insured 2/15 at 100.00 AAA 1,251,432
7,900 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 AAA 8,392,012
School Districts Financing Program, Series 2002D,
5.250%, 10/01/23 - MBIA Insured
1,040 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 1,095,609
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/21 -
FSA Insured
Erie County Industrial Development Agency, New York, School
Facility Revenue Bonds, Buffalo City School District, Series
2003:
1,200 5.750%, 5/01/20 - FSA Insured 5/12 at 100.00 AAA 1,302,696
1,000 5.750%, 5/01/22 - FSA Insured 5/12 at 100.00 AAA 1,080,100
1,710 Erie County Industrial Development Agency, New York, 5/14 at 100.00 AAA 1,900,648
School Facility Revenue Bonds, Buffalo City School District,
Series 2004, 5.750%, 5/01/26 - FSA Insured
Erie County Industrial Development Agency, New York, School
Facility Revenue Bonds, Buffalo City School District Project,
Series 2007A:
5,980 5.750%, 5/01/27 - FSA Insured (UB) 5/17 at 101.00 AAA 6,705,374
1,670 5.750%, 5/01/28 - FSA Insured (UB) 5/17 at 101.00 AAA 1,871,168
7,500 Metropolitan Transportation Authority, New York, Dedicated 11/12 at 100.00 AAA 7,905,675
Tax Fund Bonds, Series 2002A, 5.250%, 11/15/25 -
FSA Insured
4,100 Metropolitan Transportation Authority, New York, Dedicated Tax 11/16 at 100.00 AAA 4,269,043
Fund Bonds, Series 2006, 5.000%, 11/15/31 - MBIA Insured
4,600 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA 4,954,844
Contract Bonds, Series 2002B, 5.500%, 7/01/18 - MBIA Insured
Metropolitan Transportation Authority, New York, State Service
Contract Refunding Bonds, Series 2002A:
2,000 5.750%, 7/01/18 - FSA Insured No Opt. Call AAA 2,304,380
3,000 5.500%, 1/01/19 - MBIA Insured 7/12 at 100.00 AAA 3,231,420
6,000 5.500%, 1/01/20 - MBIA Insured 7/12 at 100.00 AAA 6,457,380
3,000 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00 AAA 3,109,950
8,000 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 8,208,720
Nassau County Interim Finance Authority, New York, Sales Tax
Secured Revenue Bonds, Series 2003A:
1,555 4.750%, 11/15/21 - AMBAC Insured 11/13 at 100.00 AAA 1,602,847
1,555 4.750%, 11/15/22 - AMBAC Insured 11/13 at 100.00 AAA 1,598,618
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
$ 2,720 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA $ 2,842,210
1,990 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 2,076,943
3,470 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 3,608,765
1,500 5.000%, 10/15/32 - AMBAC Insured 10/14 at 100.00 AAA 1,554,450
1,600 New York City Transitional Finance Authority, New York, 1/17 at 100.00 AAA 1,675,616
Building Aid Revenue Bonds, Fiscal Series 2007S-2,
5.000%, 1/15/28 - FGIC Insured
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal Series 2002B:
10,170 5.250%, 5/01/12 - MBIA Insured 11/11 at 101.00 AAA 10,860,744
2,420 5.250%, 5/01/17 - MBIA Insured 11/11 at 101.00 AAA 2,588,626
970 5/01/30 - MBIA Insured 11/11 at 101.00 AAA 995,589
5,345 New York City Transitional Finance Authority, New York, 8/12 at 100.00 AAA 5,700,336
Future Tax Secured Bonds, Fiscal Series 2003C,
5.250%, 8/01/21 - AMBAC Insured
1,995 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 2,114,740
Future Tax Secured Bonds, Fiscal Series 2003E,
5.250%, 2/01/22 - MBIA Insured
1,845 New York City Transitional Finance Authority, New York, 2/14 at 100.00 AAA 1,956,899
Future Tax Secured Bonds, Fiscal Series 2004C,
5.000%, 2/01/19 - XLCA Insured
3,500 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 3,659,810
Future Tax Secured Refunding Bonds, Fiscal Series 2003D,
5.000%, 2/01/22 - MBIA Insured
New York Convention Center Development Corporation,
Hotel Unit Fee Revenue Bonds, Series 2005:
2,535 5.000%, 11/15/30 - AMBAC Insured 11/15 at 100.00 AAA 2,629,986
6,065 5.000%, 11/15/44 - AMBAC Insured 11/15 at 100.00 AAA 6,205,769
3,750 New York State Local Government Assistance Corporation, No Opt. Call AAA 4,092,000
Revenue Bonds, Series 1993E, 5.250%, 4/01/16 - FSA Insured
1,000 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 1,051,830
Fund Bonds, Second Generation, Series 2004,
5.000%, 4/01/22 - MBIA Insured
New York State Thruway Authority, Highway and Bridge Trust
Fund Bonds, Second Generation, Series 2005B:
8,455 5.500%, 4/01/20 - AMBAC Insured No Opt. Call AAA 9,591,012
2,600 5.000%, 4/01/21 - AMBAC Insured 10/15 at 100.00 AAA 2,742,012
1,000 New York State Thruway Authority, State Personal Income Tax 9/14 at 100.00 AAA 1,043,870
Revenue Bonds, Series 2004A, 5.000%, 3/15/24 -
AMBAC Insured
New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
12,400 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA 13,195,457
1,000 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 1,061,020
3,190 New York State Urban Development Corporation, Revenue No Opt. Call AAA 3,494,390
Refunding Bonds, State Facilities, Series 1995,
5.600%, 4/01/15 - MBIA Insured
500 New York State Urban Development Corporation, State Personal 3/15 at 100.00 AAA 518,095
Income Tax Revenue Bonds, Series 2005B, 5.000%, 3/15/30 -
FSA Insured
1,980 Niagara Falls City School District, Niagara County, New York, 6/15 at 100.00 AAA 2,048,350
Certificates of Participation, High School Facility, Series 2005,
5.000%, 6/15/28 - FSA Insured
Puerto Rico Highway and Transportation Authority, Highway
Revenue Refunding Bonds, Series 2002E:
3,000 5.500%, 7/01/14 - FSA Insured No Opt. Call AAA 3,332,430
6,000 5.500%, 7/01/18 - FSA Insured No Opt. Call AAA 6,799,860
------------------------------------------------------------------------------------------------------------------------------------
168,235 Total Tax Obligation/Limited 179,688,121
------------------------------------------------------------------------------------------------------------------------------------
39
NUN
Nuveen New York Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS September 30, (2007)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 16.4% (10.4% OF TOTAL INVESTMENTS)
$ 9,700 Metropolitan Transportation Authority, New York, Transportation 11/16 at 100.00 AAA $ 9,476,219
Revenue Bonds, Series 2006B, 4.500%, 11/15/36 - FSA Insured
Metropolitan Transportation Authority, New York, Transportation
Revenue Refunding Bonds, Series 2002A:
3,815 5.500%, 11/15/19 - AMBAC Insured 11/12 at 100.00 AAA 4,130,272
4,000 5.125%, 11/15/22 - FGIC Insured 11/12 at 100.00 AAA 4,219,960
Metropolitan Transportation Authority, New York, Transportation
Revenue Refunding Bonds, Series 2002E:
2,665 5.500%, 11/15/21 - MBIA Insured 11/12 at 100.00 AAA 2,885,236
8,500 5.000%, 11/15/25 - MBIA Insured 11/12 at 100.00 AAA 8,816,455
New York State Thruway Authority, General Revenue Bonds,
Series 2005F:
2,665 5.000%, 1/01/20 - AMBAC Insured 1/15 at 100.00 AAA 2,815,972
6,395 5.000%, 1/01/30 - AMBAC Insured 1/15 at 100.00 AAA 6,624,772
1,700 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 1,769,156
Series 2005G, 5.000%, 1/01/30 - FSA Insured
2,500 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 2,578,900
Bonds, Buffalo Niagara International Airport, Series 1999A,
5.625%, 4/01/29 - MBIA Insured (Alternative Minimum Tax)
1,700 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AAA 1,770,567
Revenue Bonds, One Hundred Fortieth Series 2005,
5.000%, 12/01/31 - XLCA Insured
1,570 Port Authority of New York and New Jersey, One Hundred and 8/17 at 100.00 AAA 1,787,728
Forty Eighth Consolidated Revenue Bonds, RITES Trust 1516,
6.651%, 8/15/32 - FSA Insured (IF)
5,000 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 AAA 5,275,250
Purpose Revenue Bonds, Series 2002A, 5.250%, 1/01/20 -
FGIC Insured
Triborough Bridge and Tunnel Authority, New York, Subordinate
Lien General Purpose Revenue Refunding Bonds, Series 2002E:
1,570 5.500%, 11/15/20 - MBIA Insured No Opt. Call AAA 1,788,811
3,800 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AAA 4,041,718
------------------------------------------------------------------------------------------------------------------------------------
55,580 Total Transportation 57,981,016
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 19.2% (12.2% OF TOTAL INVESTMENTS) (4)
175 Dormitory Authority of the State of New York, Improvement 8/10 at 100.00 Aaa 183,439
Revenue Bonds, Mental Health Services Facilities,
Series 2000D, 5.250%, 8/15/30 (Pre-refunded 8/15/10) -
FSA Insured
2,625 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 3,093,143
Lease Revenue Bonds, Suffolk County Issue, Series 1986,
7.375%, 7/01/16 (ETM)
1,410 Dormitory Authority of the State of New York, Lease Revenue 7/11 at 100.00 AAA 1,508,672
Bonds, State University Dormitory Facilities, Series 2001,
5.500%, 7/01/20 (Pre-refunded 7/01/11) - FGIC Insured
6,100 Dormitory Authority of the State of New York, Revenue Bonds, 5/12 at 101.00 AAA 6,572,018
State University Educational Facilities, Series 2002A,
5.125%, 5/15/19 (Pre-refunded 5/15/12) - FGIC Insured
Dormitory Authority of the State of New York, Revenue Bonds,
University of Rochester, Series 2000A:
1,990 0.000%, 7/01/17 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 1,816,591
2,230 0.000%, 7/01/18 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 2,035,678
2,495 0.000%, 7/01/19 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 2,277,586
1,870 0.000%, 7/01/21 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 1,707,048
2,765 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 2,823,176
Revenue Bonds, Series 1998A, 5.125%, 12/01/22
(Pre-refunded 6/01/08) - FSA Insured
2,500 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA 2,659,550
Revenue Bonds, Series 2001A, 5.250%, 9/01/28
(Pre-refunded 9/01/11) - FSA Insured
Longwood Central School District, Suffolk County, New York,
Series 2000:
910 5.750%, 6/15/19 (Pre-refunded 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa 988,842
1,410 5.750%, 6/15/20 (Pre-refunded 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa 1,532,162
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 3,000 Metropolitan Transportation Authority, New York, Dedicated Tax 10/15 at 100.00 AAA $ 3,223,050
Fund Bonds, Series 1998A, 4.750%, 4/01/28
(Pre-refunded 10/01/15) - FGIC Insured
Metropolitan Transportation Authority, New York, Dedicated Tax
Fund Bonds, Series 1999A:
4,000 5.000%, 4/01/17 (Pre-refunded 10/01/14) - FSA Insured 10/14 at 100.00 AAA 4,345,440
1,000 5.000%, 4/01/29 (Pre-refunded 10/01/14) - FSA Insured 10/14 at 100.00 AAA 1,086,360
Metropolitan Transportation Authority, New York, Transit Facilities
Revenue Bonds, Series 1998B:
10,000 4.875%, 7/01/18 - FGIC Insured (ETM) 7/08 at 101.00 AAA 10,187,898
4,500 4.750%, 7/01/26 - FGIC Insured (ETM) 7/08 at 101.00 AAA 4,544,865
2,000 New York City Municipal Water Finance Authority, New York, 6/11 at 100.00 AAA 2,151,940
Water and Sewerage System Revenue Bonds, Fiscal
Series 2002A, 5.750%, 6/15/27 (Pre-refunded 6/15/11) -
MBIA Insured
30 New York City Transitional Finance Authority, New York, Future 11/11 at 101.00 Aaa 31,987
Tax Secured Bonds, Fiscal Series 2002B, 5.000%, 5/01/30
(Pre-refunded 11/01/11) - MBIA Insured
655 New York City Transitional Finance Authority, New York, Future 8/12 at 100.00 Aaa 704,767
Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/21
(Pre-refunded 8/01/12) - AMBAC Insured
4,875 New York City, New York, General Obligation Bonds, Fiscal 3/12 at 100.00 Aaa 5,196,994
Series 2002C, 5.125%, 3/15/25 (Pre-refunded 3/15/12) -
FSA Insured
6,965 New York State Thruway Authority, Highway and Bridge Trust 4/12 at 100.00 AAA 7,470,729
Fund Bonds, Series 2002A, 5.250%, 4/01/20
(Pre-refunded 4/01/12) - FSA Insured
Putnam Valley Central School District, Putnam and Westchester
Counties, New York, General Obligation Bonds, Series 1999:
525 5.875%, 6/15/19 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335
525 5.875%, 6/15/25 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335
525 5.875%, 6/15/27 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335
------------------------------------------------------------------------------------------------------------------------------------
65,080 Total U.S. Guaranteed 67,813,940
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 10.6% (6.8% OF TOTAL INVESTMENTS)
1,650 Islip Resource Recovery Agency, New York, Revenue Bonds, No Opt. Call AAA 1,846,878
Series 1994B, 7.250%, 7/01/11 - AMBAC Insured
(Alternative Minimum Tax)
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 2000A:
4,000 0.000%, 6/01/24 - FSA Insured No Opt. Call AAA 1,901,440
4,000 0.000%, 6/01/25 - FSA Insured No Opt. Call AAA 1,802,840
5,000 0.000%, 6/01/26 - FSA Insured No Opt. Call AAA 2,134,650
7,000 0.000%, 6/01/27 - FSA Insured No Opt. Call AAA 2,833,460
10,500 0.000%, 6/01/28 - FSA Insured No Opt. Call AAA 4,010,370
7,000 0.000%, 6/01/29 - FSA Insured No Opt. Call AAA 2,535,750
2,500 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA 2,586,225
Revenue Bonds, Series 2001A, 5.000%, 9/01/27 - FSA Insured
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 2006A:
6,180 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 6,515,327
8,020 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 8,401,752
750 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 AAA 773,108
Revenue Bonds, Series 2006B, 5.000%, 12/01/35 -
CIFG Insured
Power Authority of the State of New York, General Revenue
Bonds, Series 2006A:
1,300 5.000%, 11/15/18 - FGIC Insured 11/15 at 100.00 AAA 1,391,273
865 5.000%, 11/15/19 - FGIC Insured 11/15 at 100.00 AAA 920,421
------------------------------------------------------------------------------------------------------------------------------------
58,765 Total Utilities 37,653,494
------------------------------------------------------------------------------------------------------------------------------------
41
NUN
Nuveen New York Quality Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS September 30, (2007)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.5% (3.5% OF TOTAL INVESTMENTS)
$ 830 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA $ 889,005
Water and Sewerage System Revenue Bonds, Fiscal
Series 2000B, 6.100%, 6/15/31 - MBIA Insured
1,360 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 1,453,201
Water and Sewerage System Revenue Bonds, Fiscal
Series 2000B, 6.000%, 6/15/33 - MBIA Insured
3,000 New York City Municipal Water Finance Authority, New York, 6/14 at 100.00 AAA 3,085,020
Water and Sewerage System Revenue Bonds, Fiscal
Series 2004C, 5.000%, 6/15/35 - AMBAC Insured
6,525 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA 6,802,182
Water and Sewerage System Revenue Bonds, Fiscal
Series 2005C, 5.000%, 6/15/27 - MBIA Insured
7,000 Suffolk County Water Authority, New York, Waterworks 6/15 at 100.00 AAA 7,286,860
Revenue Bonds, Series 2005C, 5.000%, 6/01/28 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
18,715 Total Water and Sewer 19,516,268
------------------------------------------------------------------------------------------------------------------------------------
$ 551,828 Total Investments (cost $536,134,644) - 157.5% 556,828,862
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.2)% (14,845,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 8,579,681
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.7)% (197,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 353,563,543
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT SEPTEMBER 30, 2007:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Goldman Sachs $2,250,000 Receive 3-Month USD-LIBOR 5.593% Semi-Annually 10/01/08 10/01/37 $(33,606)
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
All of the bonds in the Portfolio of Investments are either
covered by Original Issue Insurance, Secondary Market
Insurance or Portfolio Insurance, or are backed by an escrow
or trust containing sufficient U.S. Government or U.S.
Government agency securities, any of which ensure the timely
payment of principal and interest.
The Fund may invest in "zero coupon" securities. A zero
coupon security does not pay a regular interest coupon to
its holders during the life of the security. Tax-exempt
income to the holder of the security comes from accretion of
the difference between the original purchase price of the
security at issuance and the par value of the security at
maturity and is effectively paid at maturity. Such
securities are included in the Portfolio of Investments with
a 0.000% coupon rate in their description. The market prices
of zero coupon securities generally are more volatile than
the market prices of securities that pay interest
periodically.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest.
(5) Effective date represents the date on which both the Fund
and counterparty commence interest payment accruals on each
forward swap contract.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
42
NNF
Nuveen Insured New York Premium Income Municipal Fund, Inc.
Portfolio of INVESTMENTS
September 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 20.0% (12.9% OF TOTAL INVESTMENTS)
Amherst Industrial Development Agency, New York, Revenue Bonds,
UBF Faculty/Student Housing Corporation, University of Buffalo
Project, Series 2000A:
$ 250 5.625%, 8/01/20 - AMBAC Insured 8/10 at 102.00 AAA $ 268,028
250 5.750%, 8/01/25 - AMBAC Insured 8/10 at 102.00 AAA 267,493
Dormitory Authority of the State of New York, General Revenue
Bonds, New York University, Series 2001-1:
1,500 5.500%, 7/01/24 - AMBAC Insured No Opt. Call AAA 1,716,210
500 5.500%, 7/01/40 - AMBAC Insured No Opt. Call AAA 577,990
4,820 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 Aaa 4,912,687
Bonds, Ithaca College, Series 1998, 5.000%, 7/01/21 -
AMBAC Insured
810 Dormitory Authority of the State of New York, Insured Revenue 7/11 at 100.00 AAA 843,842
Bonds, Yeshiva University, Series 2001, 5.000%, 7/01/20 -
AMBAC Insured
1,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AAA 1,076,180
Bonds, State University Dormitory Facilities, Series 2003B,
5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured
255 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 AAA 264,657
Barnard College, Series 2007A, 5.000%, 7/01/37 -
FGIC Insured
700 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 791,350
City University of New York, Series 2005A, 5.500%, 7/01/18 -
FGIC Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Rochester Institute of Technology, Series 2006A:
250 5.250%, 7/01/20 - AMBAC Insured No Opt. Call Aaa 277,668
200 5.250%, 7/01/21 - AMBAC Insured No Opt. Call Aaa 222,316
1,000 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 1,122,320
State University Educational Facilities, Series 1993A,
5.500%, 5/15/19 - AMBAC Insured
1,270 Dormitory Authority of the State of New York, Revenue Bonds, 5/12 at 101.00 AAA 1,353,680
State University Educational Facilities, Series 2002A,
5.000%, 5/15/16 - FGIC Insured
2,200 Dormitory Authority of the State of New York, Second General No Opt. Call AAA 2,483,030
Resolution Consolidated Revenue Bonds, City University
System, Series 1993A, 5.750%, 7/01/18 - FSA Insured
1,935 Dormitory Authority of the State of New York, State and Local 7/15 at 100.00 AAA 2,055,957
Appropriation Lease Bonds, Upstate Community Colleges,
Series 2005A, 5.000%, 7/01/19 - FGIC Insured
635 New York City Industrial Development Agency, New York, 9/16 at 101.00 AAA 711,981
PILOT Revenue Bonds, Yankee Stadium Project, Residual
Series 07-1032, 6.250%, 3/01/39 - FGIC Insured (IF)
1,110 New York City Industrial Development Agency, New York, 1/17 at 100.00 AAA 1,137,617
PILOT Revenue Bonds, Queens Baseball Stadium Project,
Series 2006, 5.000%, 1/01/46 - AMBAC Insured
1,120 New York City Industrial Development Agency, New York, 9/16 at 100.00 AAA 1,223,555
Revenue Bonds, Yankee Stadium Pilots, Trust 2148,
6.892%, 3/01/36 - FGIC Insured (IF)
1,000 New York City Industrial Development Agency, New York, 6/15 at 100.00 AAA 1,031,760
Revenue Bonds, Ethical Culture Fieldston School,
Series 2005B-1, 5.000%, 6/01/35 - XLCA Insured
415 New York City Industrial Development Authority, New York, 9/16 at 100.00 AAA 429,944
PILOT Revenue Bonds, Yankee Stadium Project, Series 2006,
5.000%, 3/01/31 - FGIC Insured
1,250 New York City Trust for Cultural Resources, New York, 1/08 at 101.00 AAA 1,277,013
Revenue Refunding Bonds, Museum of Modern Art,
Series 1996A, 5.500%, 1/01/21 - AMBAC Insured
43
NNF
Nuveen Insured New York Premium Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS September 30, (2007)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 350 New York Industrial Development Agency, Revenue Bonds, 9/16 at 100.00 AAA $ 375,400
Yankee Stadium, Series 2006, Residuals 1875,
6.870%, 3/01/46 - FGIC Insured (IF)
345 New York State Dormitory Authority, Revenue Bonds, New York 7/17 at 100.00 Aaa 359,449
University, Series 2007, 5.000%, 7/01/32 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
23,165 Total Education and Civic Organizations 24,780,127
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 23.3% (15.1% OF TOTAL INVESTMENTS)
3,000 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 100.00 AAA 3,004,380
Mortgage Hospital Revenue Bonds, Ellis Hospital, Series 1995,
5.600%, 8/01/25 - MBIA Insured
200 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 205,138
Mortgage Hospital Revenue Bonds, Hospital for Special
Surgery, Series 2005, 5.000%, 8/15/33 - MBIA Insured
2,910 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 101.00 AAA 2,925,510
Mortgage Hospital Revenue Bonds, New York and Presbyterian
Hospital, Series 1998, 4.750%, 8/01/27 - AMBAC Insured
1,400 Dormitory Authority of the State of New York, FHA-Insured 8/12 at 100.00 AAA 1,465,744
Mortgage Hospital Revenue Bonds, St. Barnabas Hospital,
Series 2002A, 5.125%, 2/01/22 - AMBAC Insured
830 Dormitory Authority of the State of New York, FHA-Insured 8/17 at 100.00 AAA 866,470
Mortgage Revenue Bonds, Hudson Valley Hospital Center,
Series 2007, 5.000%, 8/15/27 (WI/DD, Settling 10/11/07) -
FSA Insured
1,405 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,448,864
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/29 - FGIC Insured
3,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 AAA 3,119,040
Catholic Health Services of Long Island Obligated Group -
St. Charles Hospital and Rehabilitation Center, Series 1999A,
5.500%, 7/01/22 - MBIA Insured
620 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 AAA 638,674
Health Quest System Inc., Series 2007B, 5.125%, 7/01/37 -
AGC Insured
2,740 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 2,894,673
Memorial Sloan-Kettering Cancer Center, Series 2003-1,
5.000%, 7/01/21 - MBIA Insured
1,910 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 2,070,555
New York and Presbyterian Hospital, Series 2004A,
5.250%, 8/15/15 - FSA Insured
740 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 756,598
The New York and Presbyterian Hospital Project, Series 2007,
5.000%, 8/15/36 - FSA Insured
1,500 Dormitory Authority of the State of New York, Revenue Bonds, 1/08 at 102.00 AAA 1,535,520
Vassar Brothers Hospital, Series 1997, 5.250%, 7/01/17 -
FSA Insured
3,450 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 3,623,672
Winthrop South Nassau University Health System Obligated
Group, Series 2001A, 5.250%, 7/01/31 - AMBAC Insured
1,000 New York City Health and Hospitals Corporation, New York, 2/12 at 100.00 AAA 1,070,880
Health System Revenue Bonds, Series 2002A,
5.500%, 2/15/17 - FSA Insured
New York City Health and Hospitals Corporation, New York, Health
System Revenue Bonds, Series 2003A:
1,625 5.250%, 2/15/21 - AMBAC Insured 2/13 at 100.00 AAA 1,719,965
1,000 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 1,058,440
435 New York State Dormitory Authority, Revenue Bonds, No Opt. Call AAA 487,252
North Shore Jewish Obligated Group, Series 2007A,
5.250%, 7/01/34 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
27,765 Total Health Care 28,891,375
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.2% (2.7% OF TOTAL INVESTMENTS)
New York City Housing Development Corporation, New York, Capital
Fund Program Revenue Bonds, Series 2005A:
400 5.000%, 7/01/14 - FGIC Insured No Opt. Call AAA 431,440
400 5.000%, 7/01/16 - FGIC Insured 7/15 at 100.00 AAA 430,716
2,165 5.000%, 7/01/25 - FGIC Insured 7/15 at 100.00 AAA 2,255,952
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 200 New York City, New York, Multifamily Housing Revenue Bonds, 1/17 at 100.00 AAA $ 189,178
Seaview Towers, Series 2006A, 4.750%, 7/15/39 -
AMBAC Insured (Alternative Minimum Tax)
1,900 New York State Housing Finance Agency, Mortgage Revenue 11/07 at 101.00 AAA 1,922,382
Refunding Bonds, Housing Project, Series 1996A,
6.125%, 11/01/20 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,065 Total Housing/Multifamily 5,229,668
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.0% (0.7% OF TOTAL INVESTMENTS)
1,290 Syracuse Industrial Development Authority, New York, 1/17 at 100.00 AAA 1,306,125
PILOT Mortgage Revenue Bonds, Carousel Center Project,
Series 2007A, 5.000%, 1/01/36 - XLCA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.6% (1.0% OF TOTAL INVESTMENTS)
1,000 Babylon Industrial Development Agency, New York, Revenue 8/09 at 101.00 AAA 1,049,870
Bonds, WSNCHS East Inc., Series 2000B, 6.000%, 8/01/24 -
MBIA Insured
850 Dormitory Authority of the State of New York, Insured Revenue 7/11 at 102.00 AAA 885,641
Bonds, NYSARC Inc., Series 2001A, 5.000%, 7/01/26 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,850 Total Long-Term Care 1,935,511
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 12.8% (8.3% OF TOTAL INVESTMENTS)
500 Erie County, New York, General Obligation Bonds, Series 2003A, 3/13 at 100.00 Aaa 538,785
5.250%, 3/15/16 - FGIC Insured
315 Erie County, New York, General Obligation Bonds, Series 2004B, No Opt. Call Aaa 340,843
5.250%, 4/01/13 - MBIA Insured
5,005 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 5,153,999
Bonds, Series 2006A, 5.000%, 2/15/47 - FGIC Insured (UB)
210 Nassau County, New York, General Obligation Improvement No Opt. Call AAA 236,441
Bonds, Series 1993H, 5.500%, 6/15/16 - MBIA Insured
2,000 New York City, New York, General Obligation Bonds, Fiscal 2/08 at 101.00 AAA 2,031,040
Series 1998F, 5.250%, 8/01/16 - FGIC Insured
New York City, New York, General Obligation Bonds, Fiscal
Series 2004E:
1,000 5.000%, 11/01/19 - FSA Insured 11/14 at 100.00 AAA 1,061,880
1,100 5.000%, 11/01/20 - FSA Insured 11/14 at 100.00 AAA 1,163,118
1,000 New York City, New York, General Obligation Bonds, Fiscal 3/15 at 100.00 AAA 1,061,160
Series 2005J, 5.000%, 3/01/19 - FGIC Insured
915 Niagara Falls, New York, General Obligation Bonds, Series 1994, No Opt. Call AAA 1,086,425
7.500%, 3/01/13 - MBIA Insured
1,000 Red Hook Central School District, Dutchess County, New York, 6/12 at 100.00 Aaa 1,055,530
General Obligation Refunding Bonds, Series 2002,
5.125%, 6/15/18 - FSA Insured
500 West Islip Union Free School District, Suffolk County, New York, 10/15 at 100.00 Aaa 540,375
General Obligation Bonds, Series 2005, 5.000%, 10/01/16 -
FSA Insured
1,525 Yonkers, New York, General Obligation Bonds, Series 2005A, 8/15 at 100.00 AAA 1,641,907
5.000%, 8/01/16 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
15,070 Total Tax Obligation/General 15,911,503
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 50.3% (32.6% OF TOTAL INVESTMENTS)
690 Dormitory Authority of the State of New York, Department of 7/15 at 100.00 AAA 732,104
Health Revenue Bonds, Series 2005A, 5.250%, 7/01/24 -
CIFG Insured
75 Dormitory Authority of the State of New York, Improvement 8/10 at 100.00 AAA 77,751
Revenue Bonds, Mental Health Services Facilities,
Series 2000D, 5.250%, 8/15/30 - FSA Insured
500 Dormitory Authority of the State of New York, Lease Revenue 8/14 at 100.00 AAA 520,180
Bonds, Wayne-Finger Lakes Board of Cooperative Education
Services, Series 2004, 5.000%, 8/15/23 - FSA Insured
1,210 Dormitory Authority of the State of New York, Revenue Bonds, 7/14 at 100.00 AAA 1,280,446
Department of Health, Series 2004-2, 5.000%, 7/01/20 -
FGIC Insured
750 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 772,583
Mental Health Services Facilities Improvements, Series 2005B,
5.000%, 2/15/30 - AMBAC Insured
45
NNF
Nuveen Insured New York Premium Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS September 30, (2007)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Dormitory Authority of the State of New York, Revenue Bonds,
Mental Health Services Facilities Improvements, Series 2005D1:
$ 925 5.000%, 2/15/15 - FGIC Insured No Opt. Call AAA $ 993,968
600 5.000%, 8/15/23 - FGIC Insured 2/15 at 100.00 AAA 625,716
Dormitory Authority of the State of New York, Revenue Bonds,
School Districts Financing Program, Series 2002D:
4,300 5.250%, 10/01/23 - MBIA Insured 10/12 at 100.00 AAA 4,567,803
875 5.000%, 10/01/30 - MBIA Insured 10/12 at 100.00 AAA 902,493
375 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 395,051
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/21 -
FSA Insured
750 Erie County Industrial Development Agency, New York, School 5/12 at 100.00 AAA 814,185
Facility Revenue Bonds, Buffalo City School District,
Series 2003, 5.750%, 5/01/19 - FSA Insured
500 Erie County Industrial Development Agency, New York, School 5/14 at 100.00 AAA 555,745
Facility Revenue Bonds, Buffalo City School District,
Series 2004, 5.750%, 5/01/26 - FSA Insured
2,615 Erie County Industrial Development Agency, New York, School 5/17 at 101.00 AAA 2,930,003
Facility Revenue Bonds, Buffalo City School District Project,
Series 2007A, 5.750%, 5/01/28 - FSA Insured (UB)
2,500 Metropolitan Transportation Authority, New York, Dedicated Tax 11/12 at 100.00 AAA 2,635,225
Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA Insured
700 Metropolitan Transportation Authority, New York, Dedicated Tax 11/16 at 100.00 AAA 728,861
Fund Bonds, Series 2006, 5.000%, 11/15/31 - MBIA Insured
1,350 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA 1,454,139
Contract Bonds, Series 2002B, 5.500%, 7/01/18 - MBIA Insured
Metropolitan Transportation Authority, New York, State Service
Contract Refunding Bonds, Series 2002A:
1,500 5.750%, 7/01/18 - FSA Insured No Opt. Call AAA 1,728,285
1,500 5.500%, 1/01/20 - MBIA Insured 7/12 at 100.00 AAA 1,614,345
2,000 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 2,052,180
Nassau County Interim Finance Authority, New York, Sales Tax
Secured Revenue Bonds, Series 2003A:
1,000 5.000%, 11/15/18 - AMBAC Insured 11/13 at 100.00 AAA 1,059,700
580 4.750%, 11/15/21 - AMBAC Insured 11/13 at 100.00 AAA 597,847
580 4.750%, 11/15/22 - AMBAC Insured 11/13 at 100.00 AAA 596,269
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
920 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 961,336
680 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 709,709
3,840 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 3,993,561
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal Series 2003C:
715 5.250%, 8/01/20 - AMBAC Insured 8/12 at 100.00 AAA 762,533
2,090 5.250%, 8/01/21 - AMBAC Insured 8/12 at 100.00 AAA 2,228,943
1,000 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA 1,060,020
Tax Secured Bonds, Fiscal Series 2003E, 5.250%, 2/01/22 -
MBIA Insured
1,000 New York City Transitional Finance Authority, New York, Future 2/14 at 100.00 AAA 1,060,650
Tax Secured Bonds, Fiscal Series 2004C, 5.000%, 2/01/19 -
XLCA Insured
1,500 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA 1,568,490
Tax Secured Refunding Bonds, Fiscal Series 2003D,
5.000%, 2/01/22 - MBIA Insured
New York Convention Center Development Corporation,
Hotel Unit Fee Revenue Bonds, Series 2005:
1,035 5.000%, 11/15/30 - AMBAC Insured 11/15 at 100.00 AAA 1,073,781
2,065 5.000%, 11/15/44 - AMBAC Insured 11/15 at 100.00 AAA 2,112,929
1,500 New York State Local Government Assistance Corporation, No Opt. Call AAA 1,636,800
Revenue Bonds, Series 1993E, 5.250%, 4/01/16 - FSA Insured
46
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,000 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA $ 1,044,270
Fund Bonds, Second Generation, Series 2004,
5.000%, 4/01/23 - MBIA Insured
New York State Thruway Authority, Highway and Bridge Trust
Fund Bonds, Second Generation, Series 2005B:
2,960 5.500%, 4/01/20 - AMBAC Insured No Opt. Call AAA 3,357,706
500 5.000%, 4/01/21 - AMBAC Insured 10/15 at 100.00 AAA 527,310
750 New York State Thruway Authority, State Personal Income Tax 9/14 at 100.00 AAA 782,903
Revenue Bonds, Series 2004A, 5.000%, 3/15/24 -
AMBAC Insured
New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
2,100 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA 2,234,715
3,800 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 4,031,875
1,900 New York State Urban Development Corporation, Revenue No Opt. Call AAA 2,030,758
Bonds, Correctional Facilities, Series 1994A, 5.250%, 1/01/14 -
FSA Insured
500 New York State Urban Development Corporation, State Personal 3/15 at 100.00 AAA 518,095
Income Tax Revenue Bonds, Series 2005B, 5.000%, 3/15/30 -
FSA Insured
345 Niagara Falls City School District, Niagara County, New York, 6/15 at 100.00 AAA 356,909
Certificates of Participation, High School Facility, Series 2005,
5.000%, 6/15/28 - FSA Insured
1,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 1,133,310
Revenue Refunding Bonds, Series 2002E, 5.500%, 7/01/18 -
FSA Insured
1,500 Suffolk County Judicial Facilities Agency, New York, Service 10/09 at 101.00 AAA 1,556,205
Agreement Revenue Bonds, John P. Colahan Court Complex,
Series 1999, 5.000%, 4/15/16 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
58,575 Total Tax Obligation/Limited 62,377,687
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 14.8% (9.6% OF TOTAL INVESTMENTS)
3,000 Metropolitan Transportation Authority, New York, Transportation 11/16 at 100.00 AAA 2,930,790
Revenue Bonds, Series 2006B, 4.500%, 11/15/36 - FSA Insured
Metropolitan Transportation Authority, New York, Transportation
Revenue Refunding Bonds, Series 2002A:
500 5.500%, 11/15/19 - AMBAC Insured 11/12 at 100.00 AAA 541,320
2,010 5.000%, 11/15/25 - FGIC Insured 11/12 at 100.00 AAA 2,084,832
2,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 2,074,460
Revenue Refunding Bonds, Series 2002E, 5.000%, 11/15/25 -
MBIA Insured
New York State Thruway Authority, General Revenue Bonds,
Series 2005F:
925 5.000%, 1/01/20 - AMBAC Insured 1/15 at 100.00 AAA 977,401
2,875 5.000%, 1/01/30 - AMBAC Insured 1/15 at 100.00 AAA 2,978,299
600 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 624,408
Series 2005G, 5.000%, 1/01/30 - FSA Insured
500 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 515,780
Bonds, Buffalo Niagara International Airport, Series 1999A,
5.625%, 4/01/29 - MBIA Insured (Alternative Minimum Tax)
Port Authority of New York and New Jersey, Consolidated Revenue
Bonds, One Hundred Fortieth Series 2005:
1,000 5.000%, 12/01/28 - XLCA Insured 6/15 at 101.00 AAA 1,045,490
565 5.000%, 12/01/31 - XLCA Insured 6/15 at 101.00 AAA 588,453
545 Port Authority of New York and New Jersey, One Hundred and 8/17 at 100.00 AAA 620,581
Forty Eighth Consolidated Revenue Bonds, RITES Trust 1516,
6.651%, 8/15/32 - FSA Insured (IF)
Triborough Bridge and Tunnel Authority, New York, Subordinate
Lien General Purpose Revenue Refunding Bonds, Series 2002E:
780 5.500%, 11/15/20 - MBIA Insured No Opt. Call AAA 888,709
2,300 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AAA 2,446,303
------------------------------------------------------------------------------------------------------------------------------------
17,600 Total Transportation 18,316,826
------------------------------------------------------------------------------------------------------------------------------------
47
NNF
Nuveen Insured New York Premium Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS September 30, (2007)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 12.3% (8.0% OF TOTAL INVESTMENTS) (4)
$ 70 Dormitory Authority of the State of New York, Improvement 8/10 at 100.00 Aaa $ 73,375
Revenue Bonds, Mental Health Services Facilities, Series 2000D,
5.250%, 8/15/30 (Pre-refunded 8/15/10) - FSA Insured
3,215 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 AAA 2,934,845
University of Rochester, Series 2000A, 0.000%, 7/01/24
(Pre-refunded 7/01/10) - MBIA Insured
1,345 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 1,373,299
Revenue Bonds, Series 1998A, 5.125%, 12/01/22
(Pre-refunded 6/01/08) - FSA Insured
625 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA 664,888
Revenue Bonds, Series 2001A, 5.250%, 9/01/28
(Pre-refunded 9/01/11) - FSA Insured
500 Longwood Central School District, Suffolk County, New York, 6/11 at 101.00 Aaa 543,320
Series 2000, 5.750%, 6/15/20 (Pre-refunded 6/15/11) -
FGIC Insured
1,500 Metropolitan Transportation Authority, New York, Dedicated Tax 10/15 at 100.00 AAA 1,611,525
Fund Bonds, Series 1998A, 4.750%, 4/01/28
(Pre-refunded 10/01/15) - FGIC Insured
500 Metropolitan Transportation Authority, New York, Dedicated Tax 10/14 at 100.00 AAA 543,180
Fund Bonds, Series 1999A, 5.000%, 4/01/29
(Pre-refunded 10/01/14) - FSA Insured
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal Series 2003C:
285 5.250%, 8/01/20 (Pre-refunded 8/01/12) - AMBAC Insured 8/12 at 100.00 Aaa 306,654
255 5.250%, 8/01/21 (Pre-refunded 8/01/12) - AMBAC Insured 8/12 at 100.00 Aaa 274,375
1,000 New York State Thruway Authority, Highway and Bridge Trust 4/12 at 100.00 AAA 1,072,610
Fund Bonds, Series 2002A, 5.250%, 4/01/18
(Pre-refunded 4/01/12) - FSA Insured
1,000 New York State Thruway Authority, Highway and Bridge Trust 4/12 at 100.00 AAA 1,062,270
Fund Bonds, Series 2002B, 5.000%, 4/01/20
(Pre-refunded 4/01/12) - AMBAC Insured
2,000 New York State Urban Development Corporation, State 3/13 at 100.00 AAA 2,192,220
Personal Income Tax Revenue Bonds, State Facilities and
Equipment, Series 2002C-1, 5.500%, 3/15/21
(Pre-refunded 3/15/13) - FGIC Insured
85 Niagara Falls, New York, General Obligation Bonds, No Opt. Call AAA 101,257
Series 1994, 7.500%, 3/01/13 - MBIA Insured (ETM)
2,115 Niagara Falls, Niagara County, New York, General Obligation No Opt. Call AAA 2,224,261
Water Treatment Plant Bonds, Series 1994, 8.500%, 11/01/08 -
MBIA Insured (Alternative Minimum Tax) (ETM)
265 Suffolk County Water Authority, New York, Subordinate Lien No Opt. Call AAA 283,102
Waterworks Revenue Bonds, Series 1993, 5.100%, 6/01/12 -
MBIA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
14,760 Total U.S. Guaranteed 15,261,181
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.6% (3.6% OF TOTAL INVESTMENTS)
500 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA 517,245
Revenue Bonds, Series 2001A, 5.000%, 9/01/27 - FSA Insured
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 2006A:
2,270 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 2,393,170
2,930 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 3,069,468
250 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 AAA 257,703
Revenue Bonds, Series 2006B, 5.000%, 12/01/35 - CIFG Insured
Power Authority of the State of New York, General Revenue
Bonds, Series 2006A:
375 5.000%, 11/15/18 - FGIC Insured 11/15 at 100.00 AAA 401,329
250 5.000%, 11/15/19 - FGIC Insured 11/15 at 100.00 AAA 266,018
------------------------------------------------------------------------------------------------------------------------------------
6,575 Total Utilities 6,904,933
------------------------------------------------------------------------------------------------------------------------------------
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.6% (5.5% OF TOTAL INVESTMENTS)
$ 1,660 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA $ 1,778,009
Water and Sewerage System Revenue Bonds, Fiscal
Series 2000B, 6.100%, 6/15/31 - MBIA Insured
3,305 New York City Municipal Water Finance Authority, New York, 6/14 at 100.00 AAA 3,398,664
Water and Sewerage System Revenue Bonds, Fiscal
Series 2004C, 5.000%, 6/15/35 - AMBAC Insured
1,980 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA 2,064,110
Water and Sewerage System Revenue Bonds, Fiscal
Series 2005C, 5.000%, 6/15/27 - MBIA Insured
735 Suffolk County Water Authority, New York, Subordinate No Opt. Call AAA 783,216
Lien Waterworks Revenue Bonds, Series 1993,
5.100%, 6/01/12 - MBIA Insured
2,500 Suffolk County Water Authority, New York, Waterworks 6/15 at 100.00 AAA 2,602,450
Revenue Bonds, Series 2005C, 5.000%, 6/01/28 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,180 Total Water and Sewer 10,626,449
------------------------------------------------------------------------------------------------------------------------------------
$ 181,895 Total Investments (cost $185,764,612) - 154.5% 191,541,385
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.1)% (5,080,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 2,494,845
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.4)% (65,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 123,956,230
====================================================================================================================
All of the bonds in the Portfolio of Investments are either
covered by Original Issue Insurance, Secondary Market
Insurance or Portfolio Insurance, or are backed by an escrow
or trust containing sufficient U.S. Government or U.S.
Government agency securities, any of which ensure the timely
payment of principal and interest.
The Fund may invest in "zero coupon" securities. A zero
coupon security does not pay a regular interest coupon to
its holders during the life of the security. Tax-exempt
income to the holder of the security comes from accretion of
the difference between the original purchase price of the
security at issuance and the par value of the security at
maturity and is effectively paid at maturity. Such
securities are included in the Portfolio of Investments with
a 0.000% coupon rate in their description. The market prices
of zero coupon securities generally are more volatile than
the market prices of securities that pay interest
periodically.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
49
NKO
Nuveen Insured New York Dividend Advantage Municipal Fund
Portfolio of INVESTMENTS
September 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.6% (2.3% OF TOTAL INVESTMENTS)
$ 2,390 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB $ 2,390,406
Pass-Through Bonds, Series 2001, 5.250%, 6/01/25
1,000 New York Counties Tobacco Trust III, Tobacco Settlement 6/13 at 100.00 BBB 1,016,530
Pass-Through Bonds, Series 2003, 5.750%, 6/01/33
840 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 836,472
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
4,230 Total Consumer Staples 4,243,408
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.3% (11.3% OF TOTAL INVESTMENTS)
4,000 Dormitory Authority of the State of New York, Insured Revenue No Opt. Call AAA 4,308,320
Bonds, Mount Sinai School of Medicine, Series 1994A,
5.150%, 7/01/24 - MBIA Insured
1,280 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 AAA 1,304,614
Bonds, New York Medical College, Series 1998,
5.000%, 7/01/21 - MBIA Insured
1,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AAA 1,076,180
Bonds, State University Dormitory Facilities, Series 2003B,
5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured
240 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 AAA 249,089
Barnard College, Series 2007A, 5.000%, 7/01/37 - FGIC Insured
500 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 565,250
City University of New York, Series 2005A, 5.500%, 7/01/18 -
FGIC Insured
3,250 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 3,815,078
New York University, Series 1998A, 6.000%, 7/01/18 -
MBIA Insured
600 New York City Industrial Development Agency, New York, 9/16 at 101.00 AAA 672,738
PILOT Revenue Bonds, Yankee Stadium Project, Residual
Series 07-1032, 6.250%, 3/01/39 - FGIC Insured (IF)
New York City Industrial Development Agency, New York, PILOT
Revenue Bonds, Queens Baseball Stadium Project, Series 2006:
1,000 5.000%, 1/01/36 - AMBAC Insured 1/17 at 100.00 AAA 1,031,710
1,060 5.000%, 1/01/46 - AMBAC Insured 1/17 at 100.00 AAA 1,086,373
1,070 New York City Industrial Development Agency, New York, 9/16 at 100.00 AAA 1,168,932
Revenue Bonds, Yankee Stadium Pilots, Trust 2148,
6.892%, 3/01/36 - FGIC Insured (IF)
395 New York City Industrial Development Authority, New York, 9/16 at 100.00 AAA 409,224
PILOT Revenue Bonds, Yankee Stadium Project, Series 2006,
5.000%, 3/01/31 - FGIC Insured
4,000 New York City Trust for Cultural Resources, New York, 7/12 at 100.00 AAA 4,174,640
Revenue Bonds, Museum of Modern Art, Series 2001D,
5.125%, 7/01/31 - AMBAC Insured
330 New York Industrial Development Agency, Revenue Bonds, 9/16 at 100.00 AAA 353,948
Yankee Stadium, Series 2006, Residuals 1875,
6.870%, 3/01/46 - FGIC Insured (IF)
330 New York State Dormitory Authority, Revenue Bonds, 7/17 at 100.00 Aaa 343,820
New York University, Series 2007, 5.000%, 7/01/32 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
19,055 Total Education and Civic Organizations 20,559,916
------------------------------------------------------------------------------------------------------------------------------------
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 24.2% (15.8% OF TOTAL INVESTMENTS)
$ 2,000 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 101.00 AAA $ 2,010,660
Mortgage Hospital Revenue Bonds, New York and Presbyterian
Hospital, Series 1998, 4.750%, 8/01/27 - AMBAC Insured
1,400 Dormitory Authority of the State of New York, FHA-Insured 8/12 at 100.00 AAA 1,465,744
Mortgage Hospital Revenue Bonds, St. Barnabas Hospital,
Series 2002A, 5.125%, 2/01/22 - AMBAC Insured
785 Dormitory Authority of the State of New York, FHA-Insured 8/17 at 100.00 AAA 819,493
Mortgage Revenue Bonds, Hudson Valley Hospital Center,
Series 2007, 5.000%, 8/15/27 (WI/DD, Settling 10/11/07) -
FSA Insured
9,800 Dormitory Authority of the State of New York, FHA-Insured 8/09 at 101.00 AAA 10,206,307
Mortgage Revenue Bonds, New York Hospital Medical Center
of Queens, Series 1999, 5.600%, 2/15/39 - AMBAC Insured
1,500 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,566,870
Revenue Bonds, Montefiore Medical Center, Series 2005,
5.000%, 2/01/22 - FGIC Insured
2,050 Dormitory Authority of the State of New York, Hospital Revenue 7/09 at 101.00 AAA 2,132,779
Bonds, Catholic Health Services of Long Island Obligated
Group - St. Francis Hospital, Series 1999A, 5.500%, 7/01/22 -
MBIA Insured
170 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 AAA 176,746
Catholic Health Services of Long Island Obligated Group -
St. Charles Hospital and Rehabilitation Center, Series 1999A,
5.500%, 7/01/22 - MBIA Insured
585 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 AAA 617,643
Health Quest System Inc., Series 2007B, 5.250%, 7/01/27 -
AGC Insured
1,725 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 1,822,376
Memorial Sloan-Kettering Cancer Center, Series 2003-1,
5.000%, 7/01/21 - MBIA Insured
910 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 986,495
New York and Presbyterian Hospital, Series 2004A,
5.250%, 8/15/15 - FSA Insured
600 Dormitory Authority of the State of New York, Revenue 7/13 at 100.00 Baa1 615,858
Bonds, South Nassau Communities Hospital, Series 2003B,
5.500%, 7/01/23
700 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 715,701
The New York and Presbyterian Hospital Project, Series 2007,
5.000%, 8/15/36 - FSA Insured
690 New York City Health and Hospitals Corporation, New York, 2/12 at 100.00 AAA 738,907
Health System Revenue Bonds, Series 2002A, 5.500%, 2/15/17 -
FSA Insured
New York City Health and Hospitals Corporation, New York, Health
System Revenue Bonds, Series 2003A:
1,500 5.250%, 2/15/21 - AMBAC Insured 2/13 at 100.00 AAA 1,587,660
1,000 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 1,058,440
395 New York State Dormitory Authority, Revenue Bonds, No Opt. Call AAA 442,447
North Shore Jewish Obligated Group, Series 2007A,
5.250%, 7/01/34 - FGIC Insured
Suffolk County Industrial Development Agency, New York,
Revenue Bonds, Huntington Hospital, Series 2002C:
725 6.000%, 11/01/22 11/12 at 100.00 Baa1 759,017
1,045 5.875%, 11/01/32 11/12 at 100.00 Baa1 1,074,730
------------------------------------------------------------------------------------------------------------------------------------
27,580 Total Health Care 28,797,873
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.6% (2.4% OF TOTAL INVESTMENTS)
New York City Housing Development Corporation, New York,
Multifamily Housing Revenue Bonds, Series 2002A:
2,725 5.375%, 11/01/23 (Alternative Minimum Tax) 5/12 at 100.00 AA 2,774,050
1,375 5.500%, 11/01/34 (Alternative Minimum Tax) 5/12 at 100.00 AA 1,396,918
180 New York City, New York, Multifamily Housing Revenue Bonds, 1/17 at 100.00 AAA 170,260
Seaview Towers, Series 2006A, 4.750%, 7/15/39 -
AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,280 Total Housing/Multifamily 4,341,228
------------------------------------------------------------------------------------------------------------------------------------
51
NKO
Nuveen Insured New York Dividend Advantage Municipal Fund (continued)
Portfolio of INVESTMENTS September 30, (2007)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.0% (0.7% OF TOTAL INVESTMENTS)
$ 1,225 Syracuse Industrial Development Authority, New York, 1/17 at 100.00 AAA $ 1,240,313
PILOT Mortgage Revenue Bonds, Carousel Center Project,
Series 2007A, 5.000%, 1/01/36 - XLCA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.7% (1.7% OF TOTAL INVESTMENTS)
525 Dormitory Authority of the State of New York, GNMA 2/17 at 103.00 AA 552,069
Collateralized Revenue Bonds, Cabrini of Westchester
Project, Series 2006, 5.200%, 2/15/41
Dormitory Authority of the State of New York, GNMA
Collateralized Revenue Bonds, Willow Towers Inc., Series 2002:
1,000 5.250%, 2/01/22 8/12 at 101.00 AAA 1,051,670
1,500 5.400%, 2/01/34 8/12 at 101.00 AAA 1,571,085
------------------------------------------------------------------------------------------------------------------------------------
3,025 Total Long-Term Care 3,174,824
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 14.4% (9.4% OF TOTAL INVESTMENTS)
Buffalo, New York, General Obligation Bonds, Series 2002B:
1,490 5.375%, 11/15/18 - MBIA Insured 11/12 at 100.00 AAA 1,601,616
2,375 5.375%, 11/15/20 - MBIA Insured 11/12 at 100.00 AAA 2,552,911
1,240 Canandaigua City School District, Ontario County, New York, 4/12 at 101.00 Aaa 1,333,880
General Obligation Refunding Bonds, Series 2002A,
5.375%, 4/01/17 - FSA Insured
4,760 Hudson Yards Infrastructure Corporation, New York, 2/17 at 100.00 AAA 4,901,705
Revenue Bonds, Series 2006A, 5.000%, 2/15/47 -
FGIC Insured (UB)
3,000 New York City, New York, General Obligation Bonds, 3/11 at 101.00 AAA 3,183,300
Fiscal Series 2001H, 5.250%, 3/15/16 - FGIC Insured
80 New York City, New York, General Obligation Bonds, 3/12 at 100.00 AAA 83,811
Fiscal Series 2002C, 5.125%, 3/15/25 - FSA Insured
New York City, New York, General Obligation Bonds,
Fiscal Series 2004E:
1,700 5.000%, 11/01/19 - FSA Insured 11/14 at 100.00 AAA 1,805,196
1,100 5.000%, 11/01/20 - FSA Insured 11/14 at 100.00 AAA 1,163,118
525 New York City, New York, General Obligation Bonds, 8/15 at 100.00 AAA 566,354
Fiscal Series 2006C, 5.000%, 8/01/16 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
16,270 Total Tax Obligation/General 17,191,891
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 41.5% (27.1% OF TOTAL INVESTMENTS)
250 Dormitory Authority of the State of New York, 853 Schools 7/08 at 101.00 AAA 255,458
Program Insured Revenue Bonds, Vanderheyden Hall Inc.,
Issue 2, Series 1998F, 5.250%, 7/01/18 - AMBAC Insured
220 Dormitory Authority of the State of New York, Improvement 8/09 at 101.00 AAA 227,696
Revenue Bonds, Mental Health Services Facilities,
Series 1999D, 5.250%, 2/15/29 - FSA Insured
300 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 309,033
Mental Health Services Facilities Improvements,
Series 2005B, 5.000%, 2/15/30 - AMBAC Insured
3,000 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 AAA 3,186,840
School Districts Financing Program, Series 2002D,
5.250%, 10/01/23 - MBIA Insured
160 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 168,555
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/21 -
FSA Insured
400 Erie County Industrial Development Agency, New York, School 5/12 at 100.00 AAA 434,232
Facility Revenue Bonds, Buffalo City School District,
Series 2003, 5.750%, 5/01/20 - FSA Insured
2,485 Erie County Industrial Development Agency, New York, School 5/17 at 101.00 AAA 2,784,343
Facility Revenue Bonds, Buffalo City School District Project,
Series 2007A, 5.750%, 5/01/28 - FSA Insured (UB)
2,290 Metropolitan Transportation Authority, New York, Dedicated 11/12 at 100.00 AAA 2,413,866
Tax Fund Bonds, Series 2002A, 5.250%, 11/15/25 -
FSA Insured
1,615 Metropolitan Transportation Authority, New York, Dedicated 11/16 at 100.00 AAA 1,681,586
Tax Fund Bonds, Series 2006, 5.000%, 11/15/31 -
MBIA Insured
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 4,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA $ 4,146,600
Contract Refunding Bonds, Series 2002A, 5.000%, 7/01/25 -
FGIC Insured
1,000 Nassau County Interim Finance Authority, New York, Sales 11/13 at 100.00 AAA 1,059,700
Tax Secured Revenue Bonds, Series 2003A, 5.000%, 11/15/18 -
AMBAC Insured
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
3,400 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 3,552,762
1,040 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 1,085,438
2,500 New York City Transitional Finance Authority, New York, 1/17 at 100.00 AAA 2,618,150
Building Aid Revenue Bonds, Fiscal Series 2007S-2,
5.000%, 1/15/28 - FGIC Insured
5,000 New York City Transitional Finance Authority, New York, 11/11 at 101.00 AAA 5,348,400
Future Tax Secured Bonds, Fiscal Series 2002B,
5.250%, 5/01/16 - MBIA Insured
890 New York City Transitional Finance Authority, New York, 8/12 at 100.00 AAA 949,167
Future Tax Secured Bonds, Fiscal Series 2003C,
5.250%, 8/01/21 - AMBAC Insured
500 New York City Transitional Finance Authority, New York, 2/14 at 100.00 AAA 530,325
Future Tax Secured Bonds, Fiscal Series 2004C,
5.000%, 2/01/19 - XLCA Insured
New York Convention Center Development Corporation,
Hotel Unit Fee Revenue Bonds, Series 2005:
500 5.000%, 11/15/30 - AMBAC Insured 11/15 at 100.00 AAA 518,735
1,000 5.000%, 11/15/44 - AMBAC Insured 11/15 at 100.00 AAA 1,023,210
New York State Thruway Authority, Highway and Bridge Trust
Fund Bonds, Second Generation, Series 2005B:
2,625 5.500%, 4/01/20 - AMBAC Insured No Opt. Call AAA 2,977,695
500 5.000%, 4/01/21 - AMBAC Insured 10/15 at 100.00 AAA 527,310
New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
1,900 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA 2,021,885
1,000 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 1,061,020
750 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 801,270
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21
8,600 New York State Urban Development Corporation, Revenue No Opt. Call AAA 9,757,216
Refunding Bonds, State Facilities, Series 1995,
5.700%, 4/01/20 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
45,925 Total Tax Obligation/Limited 49,440,492
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.8% (8.4% OF TOTAL INVESTMENTS)
Metropolitan Transportation Authority, New York, Transportation
Revenue Refunding Bonds, Series 2002A:
2,000 5.125%, 11/15/22 - FGIC Insured 11/12 at 100.00 AAA 2,109,980
4,000 5.000%, 11/15/25 - FGIC Insured 11/12 at 100.00 AAA 4,148,920
New York State Thruway Authority, General Revenue Bonds,
Series 2005F:
865 5.000%, 1/01/20 - AMBAC Insured 1/15 at 100.00 AAA 914,002
140 5.000%, 1/01/30 - AMBAC Insured 1/15 at 100.00 AAA 145,030
350 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 364,238
Series 2005G, 5.000%, 1/01/30 - FSA Insured
85 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 87,683
Bonds, Buffalo Niagara International Airport, Series 1999A,
5.625%, 4/01/29 - MBIA Insured (Alternative Minimum Tax)
Port Authority of New York and New Jersey, Consolidated Revenue
Bonds, One Hundred Fortieth Series 2005:
500 5.000%, 12/01/19 - FSA Insured 6/15 at 101.00 AAA 534,030
1,000 5.000%, 12/01/28 - XLCA Insured 6/15 at 101.00 AAA 1,045,490
345 5.000%, 12/01/31 - XLCA Insured 6/15 at 101.00 AAA 359,321
4,000 Port Authority of New York and New Jersey, Consolidated 8/08 at 101.00 AAA 4,080,280
Revenue Bonds, One Hundred Twenty-Fourth Series 2001,
5.000%, 8/01/11 - FGIC Insured (Alternative Minimum Tax)
53
NKO
Nuveen Insured New York Dividend Advantage Municipal Fund (continued)
Portfolio of INVESTMENTS September 30, (2007)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 515 Port Authority of New York and New Jersey, One Hundred and 8/17 at 100.00 AAA $ 586,420
Forty Eighth Consolidated Revenue Bonds, RITES Trust 1516,
6.651%, 8/15/32 - FSA Insured (IF)
780 Triborough Bridge and Tunnel Authority, New York, Subordinate No Opt. Call AAA 888,709
Lien General Purpose Revenue Refunding Bonds, Series 2002E,
5.500%, 11/15/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
14,580 Total Transportation 15,264,103
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 14.2% (9.3% OF TOTAL INVESTMENTS) (4)
160 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 188,534
Lease Revenue Bonds, Suffolk County Issue, Series 1986,
7.375%, 7/01/16 (ETM)
2,715 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA 2,888,271
Revenue Bonds, Series 2001A, 5.250%, 9/01/28
(Pre-refunded 9/01/11) - FSA Insured
110 New York City Transitional Finance Authority, New York, Future 8/12 at 100.00 Aaa 118,358
Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/21
(Pre-refunded 8/01/12) - AMBAC Insured
3,170 New York City, New York, General Obligation Bonds, Fiscal 3/12 at 100.00 Aaa 3,379,379
Series 2002C, 5.125%, 3/15/25 (Pre-refunded 3/15/12) -
FSA Insured
850 New York State Housing Finance Agency, Construction Fund No Opt. Call AAA 916,997
Bonds, State University, Series 1986A, 8.000%, 5/01/11 (ETM)
5,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 5,280,750
Series 2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) -
FSA Insured
2,575 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 2,716,419
Bonds, Series 2000A, 5.500%, 10/01/40
1,375 TSASC Inc., New York, Tobacco Asset-Backed Bonds, 7/12 at 100.00 AAA 1,475,609
Series 2002-1, 5.500%, 7/15/24 (Pre-refunded 7/15/12)
------------------------------------------------------------------------------------------------------------------------------------
15,955 Total U.S. Guaranteed 16,964,317
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.5% (8.1% OF TOTAL INVESTMENTS)
5,000 Long Island Power Authority, New York, Electric System 9/11 at 100.00 AAA 5,172,450
General Revenue Bonds, Series 2001A, 5.000%, 9/01/27 -
FSA Insured
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 2006A:
1,700 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 1,792,242
1,300 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 1,361,880
250 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 AAA 257,703
Revenue Bonds, Series 2006B, 5.000%, 12/01/35 - CIFG Insured
5,000 New York State Energy Research and Development Authority, 11/08 at 102.00 AAA 5,164,750
Pollution Control Revenue Refunding Bonds, Niagara
Mohawk Power Corporation, Series 1998A,
5.150%, 11/01/25 - AMBAC Insured
1,090 Westchester County Industrial Development Agency, 7/08 at 100.00 BBB 1,100,431
Westchester County, New York, Resource Recovery Revenue
Bonds, RESCO Company, Series 1996, 5.500%, 7/01/09
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
14,340 Total Utilities 14,849,456
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.0% (1.3% OF TOTAL INVESTMENTS)
2,295 Suffolk County Water Authority, New York, Waterworks 6/15 at 100.00 AAA 2,389,050
Revenue Bonds, Series 2005C, 5.000%, 6/01/28 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 168,760 Total Long-Term Investments (cost $172,403,607) - 149.8% 178,456,871
=============-----------------------------------------------------------------------------------------------------------------------
54
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 3.4% (2.2% OF TOTAL INVESTMENTS)
$ 4,000 Puerto Rico Government Development Bank, Adjustable VMIG-1 $ 4,000,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 3.620%, 12/01/15 - MBIA Insured (5)
=============-----------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $4,000,000) 4,000,000
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $176,403,607) - 153.2% 182,456,871
--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.1)% (4,830,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 2,504,304
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.2)% (61,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 119,131,175
====================================================================================================================
At least 80% of the Fund's net assets (including net assets
attributable to Preferred shares) are invested in municipal
securities that are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance
which ensures the timely payment of principal and interest.
Up to 20% of the Fund's net assets (including net assets
attributable to Preferred shares) may be invested in
municipal securities that are (i) either backed by an escrow
or trust containing sufficient U.S. Government or U.S.
Government agency securities (also ensuring the timely
payment of principal and interest), or (ii) rated, at the
time of investment, within the four highest grades (Baa or
BBB or better by Moody's, Standard &Poor's or Fitch) or
unrated but judged to be of comparable quality by the
Adviser.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest.
(5) Investment has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term investment. The rate disclosed is that in effect
at the end of the reporting period. This rate changes
periodically based on market conditions or a specified
market index.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
55
NRK
Nuveen Insured New York Tax-Free Advantage Municipal Fund
Portfolio of INVESTMENTS
September 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.6% (2.4% OF TOTAL INVESTMENTS)
$ 1,500 New York Counties Tobacco Trust III, Tobacco Settlement 6/13 at 100.00 BBB $ 1,524,795
Pass-Through Bonds, Series 2003, 5.750%, 6/01/33
340 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 338,572
Asset-Backed Refunding Bonds, Series 2002,
5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
1,840 Total Consumer Staples 1,863,367
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 20.5% (13.4% OF TOTAL INVESTMENTS)
2,000 Dormitory Authority of the State of New York, Insured Revenue 9/12 at 100.00 AA 1,980,240
Bonds, Long Island University, Series 2003A, 5.000%, 9/01/32 -
RAAI Insured
2,000 Dormitory Authority of the State of New York, Insured Revenue No Opt. Call AAA 2,154,160
Bonds, Mount Sinai School of Medicine, Series 1994A,
5.150%, 7/01/24 - MBIA Insured
1,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AAA 1,076,180
Bonds, State University Dormitory Facilities, Series 2003B,
5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured
1,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AA 990,110
Mount St. Mary College, Series 2003, 5.000%, 7/01/32 -
RAAI Insured
2,500 Dormitory Authority of the State of New York, Revenue Bonds, 7/12 at 100.00 Aaa 2,648,475
Rochester Institute of Technology, Series 2002A,
5.250%, 7/01/22 - AMBAC Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Rochester Institute of Technology, Series 2006A:
100 5.250%, 7/01/20 - AMBAC Insured No Opt. Call Aaa 111,067
80 5.250%, 7/01/21 - AMBAC Insured No Opt. Call Aaa 88,926
260 New York City Industrial Development Agency, New York, 9/16 at 101.00 AAA 291,520
PILOT Revenue Bonds, Yankee Stadium Project, Residual
Series 07-1032, 6.250%, 3/01/39 - FGIC Insured (IF)
475 New York City Industrial Development Agency, New York, 9/16 at 100.00 AAA 518,919
Revenue Bonds, Yankee Stadium Pilots, Trust 2148,
6.892%, 3/01/36 - FGIC Insured (IF)
500 New York City Industrial Development Agency, New York, 6/15 at 100.00 AAA 515,880
Revenue Bonds, Ethical Culture Fieldston School,
Series 2005B-1, 5.000%, 6/01/35 - XLCA Insured
170 New York City Industrial Development Authority, New York, 9/16 at 100.00 AAA 176,122
PILOT Revenue Bonds, Yankee Stadium Project, Series 2006,
5.000%, 3/01/31 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,085 Total Education and Civic Organizations 10,551,599
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 24.2% (15.8% OF TOTAL INVESTMENTS)
2,000 Dormitory Authority of the State of New York, FHA-Insured 2/13 at 100.00 AAA 2,058,180
Mortgage Hospital Revenue Bonds, Lutheran Medical Center,
Series 2003, 5.000%, 8/01/31 - MBIA Insured
3,000 Dormitory Authority of the State of New York, FHA-Insured 8/12 at 100.00 AAA 3,086,130
Mortgage Hospital Revenue Bonds, St. Barnabas Hospital,
Series 2002A, 5.000%, 2/01/31 - AMBAC Insured
345 Dormitory Authority of the State of New York, FHA-Insured 8/17 at 100.00 AAA 360,159
Mortgage Revenue Bonds, Hudson Valley Hospital Center,
Series 2007, 5.000%, 8/15/27 (WI/DD, Settling 10/11/07) -
FSA Insured
1,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,044,580
Revenue Bonds, Montefiore Medical Center, Series 2005,
5.000%, 2/01/22 - FGIC Insured
56
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 255 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 AAA $ 262,681
Health Quest System Inc., Series 2007B, 5.125%, 7/01/37 -
AGC Insured
25 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 26,411
Memorial Sloan-Kettering Cancer Center, Series 2003-1,
5.000%, 7/01/21 - MBIA Insured
810 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 878,089
New York and Presbyterian Hospital, Series 2004A,
5.250%, 8/15/15 - FSA Insured
750 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 769,823
South Nassau Communities Hospital, Series 2003B,
5.500%, 7/01/23
305 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 311,841
The New York and Presbyterian Hospital Project, Series 2007,
5.000%, 8/15/36 - FSA Insured
500 New York City Health and Hospitals Corporation, New York, 2/12 at 100.00 AAA 535,440
Health System Revenue Bonds, Series 2002A,
5.500%, 2/15/17 - FSA Insured
2,640 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 AAA 2,794,282
Health System Revenue Bonds, Series 2003A, 5.250%, 2/15/21 -
AMBAC Insured
320 New York State Dormitory Authority, Revenue Bonds, North 5/17 at 100.00 A3 319,984
Shore Jewish Obligated Group, Series 2007A, 5.000%, 5/01/32
------------------------------------------------------------------------------------------------------------------------------------
11,950 Total Health Care 12,447,600
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.6% (0.4% OF TOTAL INVESTMENTS)
300 Dormitory Authority of the State of New York, GNMA Collateralized 2/17 at 103.00 AA 315,468
Revenue Bonds, Cabrini of Westchester Project, Series 2006,
5.200%, 2/15/41
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 9.4% (6.2% OF TOTAL INVESTMENTS)
2,055 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 2,116,177
Bonds, Series 2006A, 5.000%, 2/15/47 - FGIC Insured (UB)
2,185 New York City, New York, General Obligation Bonds, Fiscal 8/08 at 101.00 AAA 2,228,394
Series 1998H, 5.125%, 8/01/25 - MBIA Insured
250 New York City, New York, General Obligation Bonds, Fiscal 11/14 at 100.00 AAA 265,470
Series 2004E, 5.000%, 11/01/19 - FSA Insured
225 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 242,723
Series 2006C, 5.000%, 8/01/16 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,715 Total Tax Obligation/General 4,852,764
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 45.7% (29.9% OF TOTAL INVESTMENTS)
2,695 Buffalo Fiscal Stability Authority, New York, Sales Tax Revenue No Opt. Call AAA 2,896,667
State Aid Secured Bonds, Series 2004A, 5.250%, 8/15/12 -
MBIA Insured
145 Dormitory Authority of the State of New York, Improvement 8/09 at 101.00 AAA 150,072
Revenue Bonds, Mental Health Services Facilities,
Series 1999D, 5.250%, 2/15/29 - FSA Insured
3,000 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 AAA 3,186,840
School Districts Financing Program, Series 2002D,
5.250%, 10/01/23 - MBIA Insured
1,085 Erie County Industrial Development Agency, New York, School 5/17 at 101.00 AAA 1,215,699
Facility Revenue Bonds, Buffalo City School District Project,
Series 2007A, 5.750%, 5/01/28 - FSA Insured (UB)
715 Metropolitan Transportation Authority, New York, Dedicated Tax 11/16 at 100.00 AAA 744,479
Fund Bonds, Series 2006, 5.000%, 11/15/31 - MBIA Insured
1,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA 1,036,650
Contract Refunding Bonds, Series 2002A, 5.000%, 7/01/25 -
FGIC Insured
57
NRK
Nuveen Insured New York Tax-Free Advantage Municipal Fund (continued)
Portfolio of INVESTMENTS September 30, (2007)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 560 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB $ 561,445
Revenue Bonds, Series 2003, 5.500%, 1/01/34
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
610 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 637,407
555 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 579,248
740 New York City Transitional Finance Authority, New York, Building 1/17 at 100.00 AAA 774,972
Aid Revenue Bonds, Fiscal Series 2007S-2, 5.000%, 1/15/28 -
FGIC Insured
3,000 New York City Transitional Finance Authority, New York, Future 8/12 at 100.00 AAA 3,199,440
Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/18 -
AMBAC Insured
2,000 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA 2,091,320
Tax Secured Refunding Bonds, Fiscal Series 2003D,
5.000%, 2/01/22 - MBIA Insured
1,290 New York State Environmental Facilities Corporation, State 1/13 at 100.00 AAA 1,342,980
Personal Income Tax Revenue Bonds, Series 2002A,
5.000%, 1/01/23 - FGIC Insured
950 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AAA 1,077,642
Fund Bonds, Second Generation, Series 2005B,
5.500%, 4/01/20 - AMBAC Insured
1,200 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AAA 1,276,980
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.250%, 6/01/20 -
AMBAC Insured
750 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 801,270
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21
1,860 New York State Urban Development Corporation, Service No Opt. Call AA- 1,967,341
Contract Revenue Bonds, Correctional and Youth Facilities,
Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11)
------------------------------------------------------------------------------------------------------------------------------------
22,155 Total Tax Obligation/Limited 23,540,452
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.6% (8.2% OF TOTAL INVESTMENTS)
1,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 1,037,230
Revenue Refunding Bonds, Series 2002A, 5.000%, 11/15/25 -
FGIC Insured
1,875 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 1,981,219
Series 2005F, 5.000%, 1/01/20 - AMBAC Insured
3,030 Port Authority of New York and New Jersey, Consolidated 11/12 at 101.00 AAA 3,190,560
Revenue Bonds, One Hundred Twenty-Eighth Series 2002,
5.000%, 11/01/22 - FSA Insured
225 Port Authority of New York and New Jersey, One Hundred and 8/17 at 100.00 AAA 256,203
Forty Eighth Consolidated Revenue Bonds, RITES Trust 1516,
6.651%, 8/15/32 - FSA Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
6,130 Total Transportation 6,465,212
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 27.2% (17.8% OF TOTAL INVESTMENTS) (4)
1,185 Dormitory Authority of the State of New York, FHA-Insured 2/13 at 102.00 AAA 1,297,314
Nursing Home Mortgage Revenue Bonds, Shorefront Jewish
Geriatric Center Inc., Series 2002, 5.200%, 2/01/32
(Pre-refunded 2/01/13)
395 Dormitory Authority of the State of New York, Lease Revenue 7/09 at 101.00 AAA 410,132
Bonds, State University Dormitory Facilities, Series 1999B,
5.125%, 7/01/28 (Pre-refunded 7/01/09) - MBIA Insured
500 Dormitory Authority of the State of New York, Revenue Bonds, 5/13 at 100.00 Aaa 545,045
North Shore Long Island Jewish Group, Series 2003,
5.375%, 5/01/23 (Pre-refunded 5/01/13)
100 Erie County Water Authority, New York, Water Revenue Bonds, No Opt. Call AAA 112,530
Series 1990B, 6.750%, 12/01/14 - AMBAC Insured (ETM)
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 1998A:
1,000 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 6/08 at 101.00 AAA 1,021,040
1,310 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 6/08 at 101.00 AAA 1,337,562
58
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 215 New York City, New York, General Obligation Bonds, 8/08 at 101.00 AAA $ 220,087
Fiscal Series 1998H, 5.125%, 8/01/25
(Pre-refunded 8/01/08) - MBIA Insured
3,500 New York State Thruway Authority, Highway and Bridge 4/12 at 100.00 AAA 3,717,944
Trust Fund Bonds, Series 2002B, 5.000%, 4/01/20
(Pre-refunded 4/01/12) - AMBAC Insured
100 New York State Urban Development Corporation, Revenue 1/08 at 102.00 AAA 102,375
Refunding Bonds, Correctional Capital Facilities, Series 1998,
5.000%, 1/01/20 (Pre-refunded 1/01/08) - MBIA Insured
500 New York State Urban Development Corporation, State Personal 3/13 at 100.00 AAA 548,055
Income Tax Revenue Bonds, State Facilities and Equipment,
Series 2002C-1, 5.500%, 3/15/21 (Pre-refunded 3/15/13) -
FGIC Insured
2,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 2,112,300
Series 2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) -
FSA Insured
1,975 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 AAA 2,102,052
Purpose Revenue Bonds, Series 2002A, 5.125%, 1/01/31
(Pre-refunded 1/01/12) - MBIA Insured
450 TSASC Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 AAA 475,695
Series 1999-1, 6.250%, 7/15/34 (Mandatory put 7/15/24)
(Pre-refunded 7/15/09)
------------------------------------------------------------------------------------------------------------------------------------
13,230 Total U.S. Guaranteed 14,002,131
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.0% (5.9% OF TOTAL INVESTMENTS)
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 2006A:
1,130 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 1,191,314
870 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 911,412
125 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 AAA 128,851
Revenue Bonds, Series 2006B, 5.000%, 12/01/35 -
CIFG Insured
2,000 Power Authority of the State of New York, General Revenue 11/12 at 100.00 Aa2 2,106,540
Bonds, Series 2002A, 5.000%, 11/15/20
Power Authority of the State of New York, General Revenue
Bonds, Series 2006A:
165 5.000%, 11/15/18 - FGIC Insured 11/15 at 100.00 AAA 176,585
110 5.000%, 11/15/19 - FGIC Insured 11/15 at 100.00 AAA 117,048
------------------------------------------------------------------------------------------------------------------------------------
4,400 Total Utilities 4,631,750
------------------------------------------------------------------------------------------------------------------------------------
$ 74,805 Total Investments (cost $76,630,773) - 152.8% 78,670,343
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.1)% (2,095,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.7% 1,903,369
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.4)% (27,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 51,478,712
====================================================================================================================
59
Nuveen Insured New York Tax-Free Advantage Municipal Fund (continued)
Portfolio of INVESTMENTS September 30, (2007)
FORWARD SWAPS OUTSTANDING AT SEPTEMBER 30, 2007:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
JPMorgan $750,000 Pay 3-Month USD-LIBOR 5.388% Semi-Annually 4/25/08 4/25/35 $ (6,878)
Royal Bank
of Canada 900,000 Pay SIFM 4.335 Quarterly 8/06/08 8/06/37 27,956
------------------------------------------------------------------------------------------------------------------------------------
$21,078
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
SIFM-The daily arithmetic average of the weekly SIFM (Securities Industry and
Financial Markets) Municipal Swap Index.
At least 80% of the Fund's net assets (including net assets
attributable to Preferred shares) are invested in municipal
securities that are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance
which ensures the timely payment of principal and interest.
Up to 20% of the Fund's net assets (including net assets
attributable to Preferred shares) may be invested in
municipal securities that are (i) either backed by an escrow
or trust containing sufficient U.S. Government or U.S.
Government agency securities (also ensuring the timely
payment of principal and interest), or (ii) rated, at the
time of investment, within the four highest grades (Baa or
BBB or better by Moody's, Standard &Poor's or Fitch) or
unrated but judged to be of comparable quality by the
Adviser.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
(2) Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's Group ("Standard & Poor's") or Moody's Investor
Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensure
the timely payment of principal and interest.
(5) Effective date represents the date on which both the Fund
and counterparty commence interest payment accruals on each
forward swap contract.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
60
Statement of
ASSETS & LIABILITIES
September 30, 2007
INSURED INSURED INSURED
NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK
INVESTMENT SELECT QUALITY PREMIUM DIVIDEND TAX-FREE
QUALITY QUALITY INCOME INCOME ADVANTAGE ADVANTAGE
(NQN) (NVN) (NUN) (NNF) (NKO) (NRK)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $399,092,377,
$531,280,728, $536,134,644,
$185,764,612, $176,403,607 and
$76,630,773, respectively) $411,684,952 $554,709,034 $556,828,862 $191,541,385 $182,456,871 $78,670,343
Cash 773,885 -- 5,396,778 1,280,260 1,370,492 1,477,005
Unrealized appreciation on forward swaps -- -- -- -- -- 27,956
Receivables:
Interest 5,631,279 7,380,780 7,241,645 2,605,993 2,487,239 992,378
Investments sold 41,142 41,143 15,429 20,572 -- --
Other assets 50,121 63,181 73,135 6,879 7,114 3,447
------------------------------------------------------------------------------------------------------------------------------------
Total assets 418,181,379 562,194,138 569,555,849 195,455,089 186,321,716 81,171,129
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 1,105,323 -- -- -- --
Floating rate obligations 10,910,000 14,635,000 14,845,000 5,080,000 4,830,000 2,095,000
Unrealized depreciation on forward swaps -- -- 33,606 -- -- 6,878
Payables:
Investments purchased 1,855,792 2,486,553 2,523,044 865,341 818,425 359,690
Shares repurchased -- -- 48,356 -- -- --
Accrued expenses:
Management fees 205,584 274,155 278,093 97,478 56,048 20,147
Other 99,877 130,220 136,533 40,178 33,679 21,583
Common share dividends payable 810,118 1,098,716 1,030,348 382,933 434,842 181,352
Preferred share dividends payable 75,951 75,936 97,326 32,929 17,547 7,767
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 13,957,322 19,805,903 18,992,306 6,498,859 6,190,541 2,692,417
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at
liquidation value 144,000,000 193,000,000 197,000,000 65,000,000 61,000,000 27,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares $260,224,057 $349,388,235 $353,563,543 $123,956,230 $119,131,175 $51,478,712
====================================================================================================================================
Common shares outstanding 17,623,633 23,316,402 23,912,139 8,329,215 7,964,131 3,513,360
====================================================================================================================================
Net asset value per Common share
outstanding (net assets
applicable to Common
shares, divided by Common
shares outstanding) $ 14.77 $ 14.98 $ 14.79 $ 14.88 $ 14.96 $ 14.65
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01
par value per share $ 176,236 $ 233,164 $ 239,121 $ 83,292 $ 79,641 $ 35,134
Paid-in surplus 247,581,994 326,283,892 332,786,619 118,406,693 113,014,433 49,509,303
Undistributed (Over-distribution of)
net investment income 172,841 (463,260) (464,816) (156,836) (311,784) (21,367)
Accumulated net realized gain
(loss) from investments and
derivative transactions (299,589) (93,867) 342,007 (153,692) 295,621 (105,006)
Net unrealized appreciation
(depreciation) of investments
and derivative transactions 12,592,575 23,428,306 20,660,612 5,776,773 6,053,264 2,060,648
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable
to Common shares $260,224,057 $349,388,235 $353,563,543 $123,956,230 $119,131,175 $51,478,712
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 200,000,000 Unlimited Unlimited
Preferred 1,000,000 1,000,000 1,000,000 1,000,000 Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
61
Statement of
OPERATIONS
Year Ended September 30, 2007
INSURED INSURED INSURED
NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK
INVESTMENT SELECT QUALITY PREMIUM DIVIDEND TAX-FREE
QUALITY QUALITY INCOME INCOME ADVANTAGE ADVANTAGE
(NQN) (NVN) (NUN) (NNF) (NKO) (NRK)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $19,475,675 $26,344,151 $26,312,296 $9,006,074 $8,672,362 $3,650,880
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,530,370 3,376,759 3,425,409 1,198,022 1,142,072 499,432
Preferred shares - auction fees 360,000 482,501 492,502 162,502 152,501 67,499
Preferred shares - dividend
disbursing agent fees 30,000 30,000 40,000 20,000 10,000 10,000
Shareholders' servicing agent
fees and expenses 32,649 34,240 33,008 11,488 1,444 761
Interest expense on floating
rate obligations 463,960 624,068 631,384 212,857 215,245 77,556
Custodian's fees and expenses 117,953 131,736 122,293 52,907 54,561 24,128
Directors'/Trustees'
fees and expenses 10,428 14,020 13,976 4,782 4,782 2,112
Professional fees 28,274 34,908 34,845 18,511 17,863 13,373
Shareholders' reports - printing
and mailing expenses 40,906 49,441 49,321 18,336 19,868 11,335
Stock exchange listing fees 9,682 9,682 9,682 9,682 676 299
Investor relations expense 43,139 56,230 57,458 20,368 19,200 8,752
Portfolio insurance expense -- 1,595 -- -- -- --
Other expenses 28,828 40,815 41,330 20,410 17,077 10,540
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian
fee credit and expense
reimbursement 3,696,189 4,885,995 4,951,208 1,749,865 1,655,289 725,787
Custodian fee credit (22,292) (22,974) (48,812) (14,240) (22,210) (9,536)
Expense reimbursement -- -- -- -- (498,859) (252,159)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 3,673,897 4,863,021 4,902,396 1,735,625 1,134,220 464,092
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 15,801,778 21,481,130 21,409,900 7,270,449 7,538,142 3,186,788
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from
investments (289,832) (70,227) 489,723 (100,953) 290,925 14,123
Change in net unrealized
appreciation (depreciation) of:
Investments (5,068,948) (8,612,656) (8,923,129) (2,681,117) (2,914,384) (1,018,278)
Forward swaps -- -- (33,606) -- -- 21,078
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) (5,358,780) (8,682,883) (8,467,012) (2,782,070) (2,623,459) (983,077)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (4,510,422) (6,304,083) (6,627,607) (2,107,436) (2,085,917) (815,059)
From accumulated net
realized gains (286,874) (213,591) (264,550) (78,002) (22,551) (10,487)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Preferred shareholders (4,797,296) (6,517,674) (6,892,157) (2,185,438) (2,108,468) (825,546)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations $ 5,645,702 $ 6,280,573 $ 6,050,731 $2,302,941 $2,806,215 $1,378,165
====================================================================================================================================
See accompanying notes to financial statements.
62
Statement of
CHANGES in NET ASSETS
NEW YORK NEW YORK NEW YORK
INVESTMENT QUALITY (NQN) SELECT QUALITY (NVN) QUALITY INCOME (NUN)
----------------------------- ----------------------------- ------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/07 9/30/06 9/30/07 9/30/06 9/30/07 9/30/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 15,801,778 $ 15,907,329 $ 21,481,130 $ 21,714,081 $ 21,409,900 $ 21,664,360
Net realized gain (loss)
from investments (289,832) 1,505,810 (70,227) 782,279 489,723 923,472
Change in net unrealized
appreciation (depreciation) of:
Investments (5,068,948) (2,357,937) (8,612,656) (2,287,599) (8,923,129) (1,988,253)
Forward swaps -- -- -- -- (33,606) --
Distributions to Preferred Shareholders:
From net investment income (4,510,422) (2,983,982) (6,304,083) (4,842,564) (6,627,607) (4,914,770)
From accumulated net
realized gains (286,874) (1,531,013) (213,591) (1,136,286) (264,550) (1,218,931)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 5,645,702 10,540,207 6,280,573 14,229,911 6,050,731 14,465,878
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (11,824,817) (13,281,844) (16,441,617) (17,869,346) (15,623,437) (18,245,845)
From accumulated net
realized gains (1,259,452) (9,475,383) (754,478) (6,350,504) (950,942) (6,512,243)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (13,084,269) (22,757,227) (17,196,095) (24,219,850) (16,574,379) (24,758,088)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Repurchased (1,323,079) -- (1,641,093) -- (2,318,030) --
Net proceeds from shares issued
to shareholders due to
reinvestment of distributions -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common
shares from capital
share transactions (1,323,079) -- (1,641,093) -- (2,318,030) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (8,761,646) (12,217,020) (12,556,615) (9,989,939) (12,841,678) (10,292,210)
Net assets applicable to Common
shares at the beginning
of year 268,985,703 281,202,723 361,944,850 371,934,789 366,405,221 376,697,431
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $260,224,057 $268,985,703 $349,388,235 $361,944,850 $353,563,543 $366,405,221
------------------------------------------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of)
net investment income at the
end of year $ 172,841 $ 708,393 $ (463,260) $ 804,030 $ (464,816) $ 392,711
====================================================================================================================================
See accompanying notes to financial statements.
63
Statement of
CHANGES in NET ASSETS (continued)
INSURED NEW YORK INSURED NEW YORK INSURED NEW YORK
PREMIUM INCOME (NNF) DIVIDEND ADVANTAGE (NKO) TAX-FREE ADVANTAGE (NRK)
----------------------------- ----------------------------- ------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/07 9/30/06 9/30/07 9/30/06 9/30/07 9/30/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 7,270,449 $ 7,298,685 $ 7,538,142 $ 7,563,621 $ 3,186,788 $ 3,166,870
Net realized gain (loss)
from investments (100,953) 293,978 290,925 95,249 14,123 89,791
Change in net unrealized appreciation
(depreciation) of:
Investments (2,681,117) (707,934) (2,914,384) (701,606) (1,018,278) (257,428)
Forward swaps -- -- -- -- 21,078 --
Distributions to Preferred Shareholders:
From net investment income (2,107,436) (1,528,170) (2,085,917) (1,625,107) (815,059) (745,283)
From accumulated net
realized gains 78,002) (419,333) (22,551) (237,461) (10,487) (12,658)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 2,302,941 4,937,226 2,806,215 5,094,696 1,378,165 2,241,292
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (5,597,338) (6,067,834) (5,763,556) (6,203,208) (2,297,570) (2,409,814)
From accumulated net
realized gains (295,581) (2,743,643) (83,553) (1,482,563) (34,075) (89,226)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (5,892,919) (8,811,477) (5,847,109) (7,685,771) (2,331,645) (2,499,040)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Repurchased -- -- -- -- -- --
Net proceeds from shares issued
to shareholders due to
reinvestment of distributions -- -- 94,153 -- 7,613 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from capital share transactions -- -- 94,153 -- 7,613 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (3,589,978) (3,874,251) (2,946,741) (2,591,075) (945,867) (257,748)
Net assets applicable to Common
shares at the beginning
of year1 27,546,208 131,420,459 122,077,916 124,668,991 52,424,579 52,682,327
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $123,956,230 $127,546,208 $119,131,175 $122,077,916 $51,478,712 $52,424,579
------------------------------------------------------------------------------------------------------------------------------------
Undistributed (Over-distribution of)
net investment income at the
end of year $ (156,836) $ 278,452 $ (311,784) $ 15,184 $ (21,367) $ (95,526)
====================================================================================================================================
See accompanying notes to financial statements.
64
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The New York funds (the "Funds") covered in this report and their corresponding
Common share stock exchange symbols are Nuveen New York Investment Quality
Municipal Fund, Inc. (NQN), Nuveen New York Select Quality Municipal Fund, Inc.
(NVN), Nuveen New York Quality Income Municipal Fund, Inc. (NUN), Nuveen Insured
New York Premium Income Municipal Fund, Inc. (NNF), Nuveen Insured New York
Dividend Advantage Municipal Fund (NKO) and Nuveen Insured New York Tax-Free
Advantage Municipal Fund (NRK). All of the Funds' Common shares trade on the New
York Stock Exchange, with the exception of Insured New York Dividend Advantage's
(NKO) Common shares and Insured New York Tax-Free Advantage's (NRK) Common
shares, which trade on the American Stock Exchange. The Funds are registered
under the Investment Company Act of 1940, as amended, as closed-end management
investment companies.
Each Fund seeks to provide current income exempt from both regular federal and
New York state income taxes, and in the case of Insured New York Tax-Free
Advantage (NRK) the alternative minimum tax applicable to individuals, by
investing primarily in a diversified portfolio of municipal obligations issued
by state and local government authorities within the state of New York or
certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
market price quotes are not readily available (which is usually the case for
municipal securities), the pricing service may establish fair value based on
yields or prices of municipal bonds of comparable quality, type of issue,
coupon, maturity and rating, indications of value from securities dealers,
evaluations of anticipated cash flows or collateral and general market
conditions. Prices of forward swap contracts are also provided by an independent
pricing service approved by each Fund's Board of Directors/Trustees. If the
pricing service is unable to supply a price for a municipal bond or forward swap
contract, each Fund may use a market price or fair market value quote provided
by a major broker/dealer in such investments. If it is determined that the
market price or fair market value for an investment or derivative transaction is
unavailable or inappropriate, the Board of Directors/Trustees of the Funds, or
its designee, may establish a fair value for the investment. Temporary
investments in securities that have variable rate and demand features qualifying
them as short-term investments are valued at amortized cost, which approximates
market value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At September 30, 2007, New
York Investment Quality (NQN), New York Select Quality (NVN), New York Quality
Income (NUN), Insured New York Premium Income (NNF), Insured New York Dividend
Advantage (NKO) and Insured New York Tax-Free Advantage (NRK) had outstanding
when-issued/delayed delivery purchase commitments of $1,855,792, $2,486,553,
$2,523,044, $865,341, $818,425 and $359,690, respectively.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
65
Notes to
FINANCIAL STATEMENTS (continued)
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and New York state
income taxes, and in the case of Insured New York Tax-Free Advantage (NRK) the
alternative minimum tax applicable to individuals, to retain such tax-exempt
status when distributed to shareholders of the Funds. Net realized capital gains
and ordinary income distributions paid by the Funds are subject to federal
taxation.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one or more Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
The number of Preferred shares outstanding, by Series and in total, for each
Fund is as follows:
INSURED INSURED INSURED
NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK
INVESTMENT SELECT QUALITY PREMIUM DIVIDEND TAX-FREE
QUALITY QUALITY INCOME INCOME ADVANTAGE ADVANTAGE
(NQN) (NVN) (NUN) (NNF) (NKO) (NRK)
-------------------------------------------------------------------------------------------------------------------
Number of shares:
Series M 960 -- 2,200 1,320 -- --
Series T 2,400 1,720 -- 1,280 -- --
Series W -- 2,400 2,200 -- -- --
Series TH -- 3,600 2,400 -- 2,440 1,080
Series F 2,400 -- 1,080 -- -- --
-------------------------------------------------------------------------------------------------------------------
Total 5,760 7,720 7,880 2,600 2,440 1,080
===================================================================================================================
Insurance
New York Investment Quality (NQN), New York Select Quality (NVN), New York
Quality Income (NUN) and Insured New York Premium Income (NNF) invest only in
municipal securities which are either covered by insurance or are backed by an
escrow or trust account containing sufficient U.S. Government or U.S. Government
agency securities, both of which ensure the timely payment of principal and
interest.
Insured New York Dividend Advantage (NKO) and Insured New York Tax-Free
Advantage (NRK) invest at least 80% of their net assets (including net assets
attributable to Preferred shares) in municipal securities that are covered by
insurance. Each Fund may also invest up to 20% of its net assets (including net
assets attributable to Preferred shares) in municipal securities which are
either (i) backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities, or (ii)
66
rated, at the time of investment, within the four highest grades (Baa or BBB or
better by Moody's, Standard & Poor's or Fitch) or unrated but judged to be of
comparable quality by Nuveen Asset Management (the "Adviser"), a wholly owned
subsidiary of Nuveen Investments, Inc. ("Nuveen").
Each insured municipal security is covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance. Such insurance does not
guarantee the market value of the municipal securities or the value of the
Funds' Common shares. Original Issue Insurance and Secondary Market Insurance
remain in effect as long as the municipal securities covered thereby remain
outstanding and the insurer remains in business, regardless of whether the Funds
ultimately dispose of such municipal securities. Consequently, the market value
of the municipal securities covered by Original Issue Insurance or Secondary
Market Insurance may reflect value attributable to the insurance. Portfolio
Insurance, in contrast, is effective only while the municipal securities are
held by the Funds. Accordingly, neither the prices used in determining the
market value of the underlying municipal securities nor the Common share net
asset value of the Funds include value, if any, attributable to the Portfolio
Insurance. Each policy of the Portfolio Insurance does, however, give the Funds
the right to obtain permanent insurance with respect to the municipal security
covered by the Portfolio Insurance policy at the time of its sale.
Inverse Floating Rate Securities
Each Fund may invest in inverse floating rate securities. An inverse floating
rate security is created by depositing a municipal bond, typically with a fixed
interest rate, into a special purpose trust created by a broker-dealer. In turn,
this trust (a) issues floating rate certificates, in face amounts equal to some
fraction of the deposited bond's par amount or market value, that typically pay
short-term tax-exempt interest rates to third parties, and (b) issues to a
long-term investor (such as one of the Funds) an inverse floating rate
certificate (sometimes referred to as an "inverse floater") that represents all
remaining or residual interest in the trust. The income received by the inverse
floater holder varies inversely with the short-term rate paid to the floating
rate certificates' holders, and in most circumstances the inverse floater holder
bears substantially all of the underlying bond's downside investment risk and
also benefits disproportionately from any potential appreciation of the
underlying bond's value. The price of an inverse floating rate security will be
more volatile than that of the underlying bond because the interest rate is
dependent on not only the fixed coupon rate of the underlying bond but also on
the short-term interest paid on the floating rate certificates, and because the
inverse floating rate security essentially bears the risk of loss of the greater
face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). An investment in an externally-deposited
inverse floater is identified in the Portfolio of Investments as an "Inverse
floating rate investment". An investment in a self-deposited inverse floater is
accounted for as a financing transaction in accordance with Statement of
Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities". In such
instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as an "Underlying bond of an inverse
floating rate trust", with the Fund accounting for the short-term floating rate
certificates issued by the trust as "Floating rate obligations" on the Statement
of Assets and Liabilities. In addition, the Fund reflects in Investment Income
the entire earnings of the underlying bond and accounts for the related interest
paid to the holders of the short-term floating rate certificates as "Interest
expense on floating rate obligations" in the Statement of Operations.
During the fiscal year ended September 30, 2007, each Fund invested in
externally deposited inverse floaters and/or self-deposited inverse floaters.
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the fiscal year
ended September 30, 2007, were as follows:
INSURED INSURED INSURED
NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK
INVESTMENT SELECT QUALITY PREMIUM DIVIDEND TAX-FREE
QUALITY QUALITY INCOME INCOME ADVANTAGE ADVANTAGE
(NQN) (NVN) (NUN) (NNF) (NKO) (NRK)
-------------------------------------------------------------------------------------------------------------------
Average floating rate obligations $11,962,329 $16,090,685 $16,279,205 $5,487,918 $5,548,959 $1,998,767
Average annual interest rate and fees 3.88% 3.88% 3.88% 3.88% 3.88% 3.88%
===================================================================================================================
67
Notes to
FINANCIAL STATEMENTS (continued)
Forward Swap Transactions
The Funds are authorized to invest in forward interest rate swap transactions.
Each Fund's use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To reduce such credit
risk, all counterparties are required to pledge collateral daily (based on the
daily valuation of each swap) on behalf of each Fund with a value approximately
equal to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
the Funds have instructed the custodian to pledge assets of the Funds as
collateral with a value approximately equal to the amount of the unrealized loss
above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the swap valuations fluctuate, either up or
down, by at least the predetermined threshold amount.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which the Fund overdraws its accounts at the custodian bank.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
68
2. FUND SHARES
On July 10, 2007, the Board of Directors of New York Investment Quality (NQN),
New York Select Quality (NVN) and New York Quality Income (NUN) approved an
open-market share repurchase program, as part of a board, ongoing effort
designed to support the market prices of the Funds' Common shares. Under the
terms of the program, each Fund may repurchase up to 10% of its outstanding
Common shares.
Transactions in Common shares were as follows:
NEW YORK NEW YORK NEW YORK
INVESTMENT QUALITY (NQN) SELECT QUALITY (NVN) QUALITY INCOME (NUN)
------------------------ ----------------------- -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/07 9/30/06 9/30/07 9/30/06 9/30/07 9/30/06
-----------------------------------------------------------------------------------------------------------------
Common shares:
Shares issued to shareholders due
to reinvestment of distributions -- -- -- -- -- --
Shares repurchased (97,300) -- (118,800) -- (171,600) --
-----------------------------------------------------------------------------------------------------------------
Weighted average price per
Common share repurchased $13.58 -- $13.79 -- $13.49 --
Weighted average discount
per Common share 7.19% -- 7.12% -- 7.74% --
=================================================================================================================
INSURED NEW YORK INSURED NEW YORK INSURED NEW YORK
PREMIUM INCOME (NNF) DIVIDEND ADVANTAGE (NKO) TAX-FREE ADVANTAGE (NRK)
------------------------ ----------------------- -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/07 9/30/06 9/30/07 9/30/06 9/30/07 9/30/06
-----------------------------------------------------------------------------------------------------------------
Common shares:
Shares issued to shareholders due
to reinvestment of distributions -- -- 6,197 -- 512 --
Shares repurchased -- -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------
Weighted average price per
Common share repurchased -- -- -- -- -- --
Weighted average discount
per Common share -- -- -- -- -- --
=================================================================================================================
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the fiscal year ended September 30, 2007,
were as follows:
INSURED INSURED INSURED
NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK
INVESTMENT SELECT QUALITY PREMIUM DIVIDEND TAX-FREE
QUALITY QUALITY INCOME INCOME ADVANTAGE ADVANTAGE
(NQN) (NVN) (NUN) (NNF) (NKO) (NRK)
---------------------------------------------------------------------------------------------------------------------
Purchases $90,644,298 $110,489,524 $124,915,207 $44,608,611 $36,840,936 $15,058,618
Sales and maturities 81,452,613 97,002,014 117,910,826 40,771,381 35,608,647 13,705,616
=====================================================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount, timing differences in recognizing
certain gains and losses on investment transactions and the treatment of
investments in inverse floating rate transactions subject to SFAS No. 140. To
the extent that differences arise that are permanent in nature, such amounts are
reclassified within the capital accounts on the Statement of Assets and
Liabilities presented in the annual report, based on their federal tax basis
treatment; temporary differences do not require reclassification. Temporary and
permanent differences do not impact the net asset values of the Funds.
At September 30, 2007, the cost of investments was as follows:
INSURED INSURED INSURED
NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK
INVESTMENT SELECT QUALITY PREMIUM DIVIDEND TAX-FREE
QUALITY QUALITY INCOME INCOME ADVANTAGE ADVANTAGE
(NQN) (NVN) (NUN) (NNF) (NKO) (NRK)
---------------------------------------------------------------------------------------------------------------------
Cost of investments $387,927,131 $516,522,406 $521,168,503 $180,622,938 $171,520,998 $74,552,721
=====================================================================================================================
69
Notes to
FINANCIAL STATEMENTS (continued)
Gross unrealized appreciation and gross unrealized depreciation of investments
at September 30, 2007, were as follows:
INSURED INSURED INSURED
NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK
INVESTMENT SELECT QUALITY PREMIUM DIVIDEND TAX-FREE
QUALITY QUALITY INCOME INCOME ADVANTAGE ADVANTAGE
(NQN) (NVN) (NUN) (NNF) (NKO) (NRK)
---------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $13,394,585 $24,068,679 $21,548,362 $6,125,729 $6,296,279 $2,083,219
Depreciation (539,116) (506,333) (724,881) (283,977) (186,366) (59,643)
---------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $12,855,469 $23,562,346 $20,823,481 $5,841,752 $6,109,913 $2,023,576
=====================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at September 30, 2007, the Funds' tax year end,
were as follows:
INSURED INSURED INSURED
NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK
INVESTMENT SELECT QUALITY PREMIUM DIVIDEND TAX-FREE
QUALITY QUALITY INCOME INCOME ADVANTAGE ADVANTAGE
(NQN) (NVN) (NUN) (NNF) (NKO) (NRK)
---------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $964,095 $790,834 $714,768 $260,147 $111,030 $177,605
Undistributed net ordinary income ** -- 6,318 3 744 -- --
Undistributed net long-term
capital gains 10,122 1,362 351,216 548 295,621 8,007
=====================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on September 4, 2007, paid on October 1, 2007.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' the tax years ended
September 30, 2007 and September 30, 2006, was designated for purposes of the
dividends paid deduction as follows:
INSURED INSURED INSURED
NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK
INVESTMENT SELECT QUALITY PREMIUM DIVIDEND TAX-FREE
QUALITY QUALITY INCOME INCOME ADVANTAGE ADVANTAGE
2007 (NQN) (NVN) (NUN) (NNF) (NKO) (NRK)
-----------------------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income *** $16,282,164 $22,790,638 $22,339,468 $7,722,662 $7,871,954 $3,110,383
Distributions from net
ordinary income ** 39,794 220 22,007 133 -- --
Distributions from net long-term
capital gains **** 1,546,326 968,069 1,215,492 373,583 106,104 44,562
=================================================================================================================
INSURED INSURED INSURED
NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK
INVESTMENT SELECT QUALITY PREMIUM DIVIDEND TAX-FREE
QUALITY QUALITY INCOME INCOME ADVANTAGE ADVANTAGE
2006 (NQN) (NVN) (NUN) (NNF) (NKO) (NRK)
-----------------------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income $16,493,057 $22,926,465 $23,334,752 $7,663,027 $7,871,436 $3,163,396
Distributions from net
ordinary income ** -- -- 31,444 -- 4,227 --
Distributions from net long-term
capital gains 11,006,407 7,486,790 7,731,174 3,162,976 1,716,383 104,088
=================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Funds hereby designate these amounts paid during the fiscal year ended
September 30, 2007, as Exempt Interest Dividends.
**** The Funds hereby designate these amounts paid during the fiscal year ended
September 30, 2007, as long-term capital gain dividends pursuant to
Internal Revenue Code Section 852(b)(3).
70
The following Funds have elected to defer net realized losses from investments
incurred from November 1, 2006 through September 30, 2007, the Funds' tax year
end, ("post-October losses") in accordance with federal income tax regulations.
Post-October losses are treated as having arisen on the first day of the
following fiscal year:
NEW YORK INSURED INSURED
INVESTMENT NEW YORK NEW YORK NEW YORK
QUALITY SELECT PREMIUM TAX-FREE
MUNI QUALITY INCOME ADVANTAGE
(NQN) (NVN) (NNF) (NRK)
--------------------------------------------------------------------------------
$309,645 $95,228 $154,238 $96,747
================================================================================
5. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
NEW YORK INVESTMENT QUALITY (NQN)
NEW YORK SELECT QUALITY (NVN)
AVERAGE DAILY NET ASSETS NEW YORK QUALITY INCOME (NUN)
(INCLUDING NET ASSETS INSURED NEW YORK PREMIUM INCOME (NNF)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
AVERAGE DAILY NET ASSETS INSURED NEW YORK DIVIDEND ADVANTAGE (NKO)
(INCLUDING NET ASSETS INSURED NEW YORK TAX-FREE ADVANTAGE (NRK)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of September 30, 2007, the complex-level fee rate was .1831%.
71
Notes to
FINANCIAL STATEMENTS (continued)
Effective August 20, 2007, the complex-level fee schedule is as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
================================================================================
Prior to August 20, 2007, the complex-level fee schedule was as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1698
$125 billion .1617
$200 billion .1536
$250 billion .1509
$300 billion .1490
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
preferred stock issued by or borrowings by the Nuveen funds) of
Nuveen-sponsored funds in the U.S.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to its Officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
funds.
72
For the first ten years of Insured New York Dividend Advantage's (NKO)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets (including net assets attributable to Preferred
shares), for fees and expenses in the amounts and for the time periods set forth
below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured New York Dividend Advantage
(NKO) for any portion of its fees and expenses beyond March 31, 2012.
For the first eight years of Insured New York Tax-Free Advantage's (NRK)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets (including net assets attributable to Preferred
shares), for fees and expenses in the amounts and for the time periods set forth
below:
YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
--------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured New York Tax-Free Advantage
(NRK) for any portion of its fees and expenses beyond November 30, 2010.
Agreement and Plan of Merger
On June 20, 2007, Nuveen Investments announced that it had entered into a
definitive Agreement and Plan of Merger ("Merger Agreement") with Windy City
Investments, Inc. ("Windy City"), a corporation formed by investors led by
Madison Dearborn Partners, LLC ("Madison Dearborn"), pursuant to which Windy
City would acquire Nuveen Investments. Madison Dearborn is a private equity
investment firm based in Chicago, Illinois. The merger was consummated on
November 13, 2007.
The consummation of the merger was deemed to be an "assignment" (as that term is
defined in the Investment Company Act of 1940) of the investment management
agreement between each Fund and the Adviser, and resulted in the automatic
termination of each Fund's agreement. The Board of Directors/Trustees of each
Fund considered and approved a new investment management agreement with the
Adviser. The new ongoing agreement was approved by the shareholders of each Fund
and took effect on November 13, 2007.
The investors led by Madison Dearborn include an affiliate of Merrill Lynch. As
a result, Merrill Lynch is an indirect "affiliated person" (as that term is
defined in the Investment Company Act of 1940) of each Fund. Certain conflicts
of interest may arise as a result of such indirect affiliation. For example, the
Funds are generally prohibited from entering into principal transactions with
Merrill Lynch and its affiliates. The Adviser does not believe that any such
prohibitions or limitations as a result of Merrill Lynch's affiliation will
significantly impact the ability of the Funds to pursue their investment
objectives and policies.
73
Notes to
FINANCIAL STATEMENTS (continued)
6. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Interpretation No. 48
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" (FIN 48).
FIN 48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Funds' tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006, and is to be
applied to all open tax years as of the effective date. SEC guidance allows
funds to delay implementing FIN 48 into NAV calculations until the fund's last
NAV calculation in the first required financial statement reporting period. As a
result, the Funds must begin to incorporate FIN 48 into their NAV calculations
by March 31, 2008. At this time, management is continuing to evaluate the
implications of FIN 48 and does not expect the adoption of FIN 48 will have a
significant impact on the net assets or results of operations of the Funds.
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 157
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007, and interim periods within those fiscal
years. The changes to current generally accepted accounting principles from the
application of this standard relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of September 30, 2007, management does not believe the adoption
of SFAS No. 157 will impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements included within the Statement of
Operations for the period.
7. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on November 1, 2007, to shareholders of record
on October 15, 2007, as follows:
INSURED INSURED INSURED
NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK
INVESTMENT SELECT QUALITY PREMIUM DIVIDEND TAX-FREE
QUALITY QUALITY INCOME INCOME ADVANTAGE ADVANTAGE
(NQN) (NVN) (NUN) (NNF) (NKO) (NRK)
-------------------------------------------------------------------------------------------------------------------
Dividend per share $.0520 $.0530 $.0510 $.0505 $.0550 $.0545
===================================================================================================================
74
Financial
HIGHLIGHTS
75
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- --------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
============================================================================================================================
NEW YORK INVESTMENT QUALITY (NQN)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2007 $15.18 $ .89 $ (.29) $(.25) $(.02) $ .33 $(.67) $(.07) $ (.74)
2006 15.87 .90 (.05) (.17) (.09) .59 (.75) (.53) (1.28)
2005 16.46 .95 (.19) (.13) (.01) .62 (.94) (.27) (1.21)
2004 16.80 1.02 .12 (.05) (.03) 1.06 (.99) (.41) (1.40)
2003 16.92 1.07 (.07) (.07) (.01) .92 (.95) (.09) (1.04)
NEW YORK SELECT QUALITY (NVN)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2007 15.44 .92 (.37) (.27) (.01) .27 (.70) (.03) (.73)
2006 15.87 .93 (.07) (.21) (.05) .60 (.76) (.27) (1.03)
2005 16.18 .97 (.09) (.14) (.01) .73 (.91) (.13) (1.04)
2004 16.28 1.01 .19 (.06) (.02) 1.12 (.95) (.27) (1.22)
2003 16.48 1.05 (.09) (.07) (.01) .88 (.94) (.14) (1.08)
============================================================================================================================
Total Returns
-------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value* Value*
==================================================================================
NEW YORK INVESTMENT QUALITY (NQN)
----------------------------------------------------------------------------------
Year Ended 9/30:
2007 $ -- $14.77 $13.70 3.22% 2.22%
2006 -- 15.18 13.99 2.39 4.03
2005 -- 15.87 14.94 4.08 3.90
2004 -- 16.46 15.52 10.21 6.61
2003 -- 16.80 15.38 3.63 5.68
NEW YORK SELECT QUALITY (NVN)
----------------------------------------------------------------------------------
Year Ended 9/30:
2007 -- 14.98 13.86 1.70 1.75
2006 -- 15.44 14.34 4.53 4.10
2005 -- 15.87 14.74 4.93 4.64
2004 -- 16.18 15.04 6.96 7.27
2003 -- 16.28 15.22 4.57 5.63
==================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement**
-------------------------------------------- -------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
NEW YORK INVESTMENT QUALITY (NQN)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2007 $260,224 1.40% 1.22% 5.98% 1.39% 1.22% 5.99% 19%
2006 268,986 1.22 1.22 5.92 1.21 1.21 5.94 16
2005 281,203 1.19 1.19 5.88 1.18 1.18 5.89 30
2004 291,660 1.18 1.18 6.26 1.18 1.18 6.26 11
2003 297,312 1.19 1.19 6.42 1.18 1.18 6.42 19
NEW YORK SELECT QUALITY (NVN)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2007 349,388 1.38 1.20 6.05 1.37 1.19 6.05 17
2006 361,945 1.20 1.20 6.03 1.18 1.18 6.05 15
2005 371,935 1.18 1.18 6.03 1.18 1.18 6.04 17
2004 379,117 1.19 1.19 6.31 1.19 1.19 6.32 8
2003 381,274 1.19 1.19 6.49 1.18 1.18 6.50 16
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
================================================================================
NEW YORK INVESTMENT QUALITY (NQN)
--------------------------------------------------------------------------------
Year Ended 9/30:
2007 $144,000 $25,000 $70,178 $10,910 $38,051
2006 144,000 25,000 71,699 -- --
2005 144,000 25,000 73,820 -- --
2004 144,000 25,000 75,635 -- --
2003 144,000 25,000 76,617 -- --
NEW YORK SELECT QUALITY (NVN)
--------------------------------------------------------------------------------
Year Ended 9/30:
2007 193,000 25,000 70,258 14,635 38,061
2006 193,000 25,000 71,884 -- --
2005 193,000 25,000 73,178 -- --
2004 193,000 25,000 74,108 -- --
2003 193,000 25,000 74,388 -- --
================================================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. The last dividend declared in the period, which
is typically paid on the first business day of the following month, is
assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period takes place over
several days, and in some instances may not be based on the market price,
so the actual reinvestment price may be different from the price used in
the calculation. Total returns are not annualized.
Total Return on Common Share Net Asset Value is the combination of changes
in Common share net asset value, reinvested dividend income at net asset
value and reinvested capital gains distributions at net asset value, if
any. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
See accompanying notes to financial statements.
76-77 spread
Financial
HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- --------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
============================================================================================================================
NEW YORK QUALITY INCOME (NUN)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2007 $15.21 $ .89 $ (.33) $(.28) $(.01) $ .27 $(.65) $(.04) $ (.69)
2006 15.64 .90 (.05) (.20) (.05) .60 (.76) (.27) (1.03)
2005 15.90 .93 (.07) (.14) (.01) .71 (.88) (.09) (.97)
2004 16.09 .98 .09 (.06) (.02) .99 (.92) (.26) (1.18)
2003 16.37 1.01 (.11) (.06) (.02) .82 (.91) (.19) (1.10)
INSURED NEW YORK PREMIUM INCOME (NNF)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2007 15.31 .87 (.33) (.25) (.01) .28 (.67) (.04) (.71)
2006 15.78 .88 (.06) (.18) (.05) .59 (.73) (.33) (1.06)
2005 16.14 .91 (.08) (.12) (.01) .70 (.88) (.18) (1.06)
2004 16.07 .97 .08 (.06) -- .99 (.92) -- (.92)
2003 16.17 1.02 (.13) (.07) -- .82 (.92) -- (.92)
============================================================================================================================
Total Returns
-------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value* Value*
================================================================================
NEW YORK QUALITY INCOME (NUN)
--------------------------------------------------------------------------------
Year Ended 9/30:
2007 $ -- $14.79 $13.46 .21% 1.81%
2006 -- 15.21 14.11 4.27 4.06
2005 -- 15.64 14.53 5.52 4.56
2004 -- 15.90 14.70 6.77 6.41
2003 -- 16.09 14.89 4.37 5.32
INSURED NEW YORK PREMIUM INCOME (NNF)
--------------------------------------------------------------------------------
Year Ended 9/30:
2007 -- 14.88 13.54 (.20) 1.85
2006 -- 15.31 14.26 3.30 3.96
2005 -- 15.78 14.86 4.64 4.50
2004 -- 16.14 15.23 7.14 6.40
2003 -- 16.07 15.10 .56 5.26
================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement**
-------------------------------------------- -------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
NEW YORK QUALITY INCOME (NUN)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2007 $353,564 1.38% 1.20% 5.95% 1.37% 1.19% 5.96% 21%
2006 366,405 1.21 1.21 5.95 1.20 1.20 5.96 14
2005 376,697 1.19 1.19 5.86 1.18 1.18 5.86 17
2004 383,012 1.19 1.19 6.21 1.19 1.19 6.21 10
2003 387,439 1.20 1.20 6.31 1.19 1.19 6.32 14
INSURED NEW YORK PREMIUM INCOME (NNF)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2007 123,956 1.40 1.23 5.79 1.39 1.22 5.80 21
2006 127,546 1.22 1.22 5.75 1.21 1.21 5.77 14
2005 131,420 1.20 1.20 5.71 1.20 1.20 5.71 22
2004 134,434 1.21 1.21 6.11 1.20 1.20 6.11 16
2003 133,735 1.21 1.21 6.38 1.21 1.21 6.38 21
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
================================================================================
NEW YORK QUALITY INCOME (NUN)
--------------------------------------------------------------------------------
Year Ended 9/30:
2007 $197,000 $25,000 $69,868 $14,845 $38,087
2006 197,000 25,000 71,498 -- --
2005 197,000 25,000 72,804 -- --
2004 197,000 25,000 73,606 -- --
2003 197,000 25,000 74,167 -- --
INSURED NEW YORK PREMIUM INCOME (NNF)
--------------------------------------------------------------------------------
Year Ended 9/30:
2007 65,000 25,000 72,675 5,080 38,196
2006 65,000 25,000 74,056 -- --
2005 65,000 25,000 75,546 -- --
2004 65,000 25,000 76,705 -- --
2003 65,000 25,000 76,436 -- --
================================================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. The last dividend declared in the period, which
is typically paid on the first business day of the following month, is
assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period takes place over
several days, and in some instances may not be based on the market price,
so the actual reinvestment price may be different from the price used in
the calculation. Total returns are not annualized.
Total Return on Common Share Net Asset Value is the combination of changes
in Common share net asset value, reinvested dividend income at net asset
value and reinvested capital gains distributions at net asset value, if
any. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
See accompanying notes to financial statements.
78-79 spread
Financial
HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- --------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
===============================================================================================================================
INSURED NEW YORK DIVIDEND ADVANTAGE (NKO)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2007 $15.34 $ .95 $(.34) $(.26) $ --**** $ .35 $(.72) $(.01) $ (.73)
2006 15.67 .95 (.08) (.20) (.03) .64 (.78) (.19) (.97)
2005 15.69 .98 .12 (.13) (.01) .96 (.86) (.12) (.98)
2004 15.44 .98 .35 (.06) (.01) 1.26 (.89) (.12) (1.01)
2003 15.82 1.00 (.32) (.08) (.01) .59 (.89) (.08) (.97)
INSURED NEW YORK TAX-FREE ADVANTAGE (NRK)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2007 14.92 .91 (.29) (.23) --**** .39 (.65) (.01) (.66)
2006 15.00 .90 (.05) (.21) --**** .64 (.69) (.03) (.72)
2005 14.75 .90 .25 (.13) -- 1.02 (.77) -- (.77)
2004 14.42 .92 .35 (.07) -- 1.20 (.87) -- (.87)
2003(b) 14.33 .68 .34 (.05) -- .97 (.65) -- (.65)
===============================================================================================================================
Total Returns
-------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
================================================================================
INSURED NEW YORK DIVIDEND ADVANTAGE (NKO)
--------------------------------------------------------------------------------
Year Ended 9/30:
2007 $ -- $14.96 $14.10 (.21)% 2.36%
2006 -- 15.34 14.85 7.92 4.29
2005 -- 15.67 14.68 9.28 6.23
2004 -- 15.69 14.35 7.55 8.48
2003 -- 15.44 14.30 (.77) 4.01
INSURED NEW YORK TAX-FREE ADVANTAGE (NRK)
--------------------------------------------------------------------------------
Year Ended 9/30:
2007 -- 14.65 13.74 2.24 2.69
2006 -- 14.92 14.08 5.79 4.38
2005 -- 15.00 14.02 8.65 7.05
2004 -- 14.75 13.64 5.83 8.58
2003(b) (.23) 14.42 13.71 (4.40) 5.29
================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement***
------------------------------------------- --------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
INSURED NEW YORK DIVIDEND ADVANTAGE (NKO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2007 $119,131 1.38% 1.20% 5.83% .94% .76% 6.27% 19%
2006 122,078 1.20 1.20 5.79 .73 .73 6.26 11
2005 124,669 1.18 1.18 5.75 .72 .72 6.21 12
2004 124,860 1.20 1.20 5.91 .74 .74 6.37 9
2003 122,901 1.20 1.20 6.07 .74 .74 6.53 15
INSURED NEW YORK TAX-FREE ADVANTAGE (NRK)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 9/30:
2007 51,479 1.40 1.25 5.65 .90 .75 6.15 17
2006 52,425 1.27 1.27 5.62 .77 .77 6.13 8
2005 52,682 1.25 1.25 5.53 .76 .76 6.01 7
2004 51,818 1.26 1.26 5.85 .76 .76 6.35 16
2003(b) 50,645 1.19* 1.19* 5.10* .70* .70* 5.59* 5
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
================================================================================
INSURED NEW YORK DIVIDEND ADVANTAGE (NKO)
--------------------------------------------------------------------------------
Year Ended 9/30:
2007 $61,000 $25,000 $73,824 $4,830 $38,294
2006 61,000 25,000 75,032 -- --
2005 61,000 25,000 76,094 -- --
2004 61,000 25,000 76,172 -- --
2003 61,000 25,000 75,369 -- --
INSURED NEW YORK TAX-FREE ADVANTAGE (NRK)
--------------------------------------------------------------------------------
Year Ended 9/30:
2007 27,000 25,000 72,665 2,095 38,460
2006 27,000 25,000 73,541 -- --
2005 27,000 25,000 73,780 -- --
2004 27,000 25,000 72,979 -- --
2003(b) 27,000 25,000 71,894 -- --
================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. The last dividend declared in the period, which
is typically paid on the first business day of the following month, is
assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period takes place over
several days, and in some instances may not be based on the market price,
so the actual reinvestment price may be different from the price used in
the calculation. Total returns are not annualized.
Total Return on Common Share Net Asset Value is the combination of changes
in Common share net asset value, reinvested dividend income at net asset
value and reinvested capital gains distributions at net asset value, if
any. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
**** Per Share Distributions from Capital Gains to Preferred Shareholders rounds
to less than $.01 per share.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the period November 21, 2002 (commencement of operations) through
September 30, 2003. See accompanying notes to financial statements.
80-81 spread
Board Members & Officers
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Fund is currently set
at eight. None of the board members who are not "interested" persons of the
Funds has ever been a director or employee of, or consultant to, Nuveen or its
affiliates. The names and business addresses of the board members and officers
of the Funds, their principal occupations and other affiliations during the past
five years, the number of portfolios each oversees and other directorships they
hold are set forth below.
Name, Position(s) Held Year First Number Principal
Birthdate with the Funds Elected or of Portfolios Occupation(s)
& Address Appointed in Fund Complex Including other
and Term(2) Overseen by Directorships
Board Member During Past 5 Years
BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS:
[] TIMOTHY R. SCHWERTFEGER(1) Former director (1994-November 12,
3/28/49 Chairman of 1994 2007), Chairman (1996-June 30, 2007),
333 W. Wacker Drive the Board ANNUAL 178 Non-Executive Chairman (July 1,
Chicago, IL 60606 and Board Member 2007-November 12, 2007) and Chief
Executive Officer (1996-June 30, 2007)
of Nuveen Investments, Inc. and Nuveen
Asset Management and certain other
subsidiaries of Nuveen Investments,
Inc.; formerly, Director (1992-2006) of
Institutional Capital Corporation.
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
[] ROBERT P. BREMNER Private Investor and Management Consultant.
8/22/40 Lead 1997
333 W. Wacker Drive Independent CLASS III 178
Chicago, IL 60606 Board member
[] JACK B. EVANS President, The Hall-Perrine Foundation,
10/22/48 1999 a private philanthropic corporation
333 W. Wacker Drive Board member CLASS III 178 (since 1996); Director and Vice
Chicago, IL 60606 Chairman, United Fire Group, a publicly
held company; Member of the Board of
Regents for the State of Iowa University
System; Director, Gazette Companies;
Life Trustee of Coe College and Iowa
College Foundation; Member of the
Advisory Council of the Department of
Finance in the Tippie College of
Business, University of Iowa; formerly,
Director, Alliant Energy; formerly,
Director, Federal Reserve Bank of
Chicago; formerly, President and Chief
Operating Officer, SCI Financial Group,
Inc., a regional financial services
firm.
[] WILLIAM C. HUNTER Dean, Tippie College of Business,
3/6/48 2004 University of Iowa (since July 2006);
333 W. Wacker Drive Board member CLASS II 178 formerly, Dean and Distinguished
Chicago, IL 60606 Professor of Finance, School of Business
at the University of Connecticut
(2003-2006); previously, Senior Vice
President and Director of Research at
the Federal Reserve Bank of Chicago
(1995-2003); Director (since 1997),
Credit Research Center at Georgetown
University; Director (since 2004) of
Xerox Corporation; Director, SS&C
Technologies, Inc. (May 2005-October
2005).
82
Name, Position(s) Held Year First Number Principal
Birthdate with the Funds Elected or of Portfolios Occupation(s)
& Address Appointed in Fund Complex Including other
and Term(2) Overseen by Directorships
Board Member During Past 5 Years
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
[] DAVID J. KUNDERT Director, Northwestern Mutual Wealth
10/28/42 2005 Management Company; Retired (since 2004)
333 W. Wacker Drive Board member CLASS II 176 as Chairman, JPMorgan Fleming Asset
Chicago, IL 60606 Management, President and CEO, Banc One
Investment Advisors Corporation, and
President, One Group Mutual Funds; prior
thereto, Executive Vice President, Banc
One Corporation and Chairman and CEO,
Banc One Investment Management Group;
Member, Board of Regents, Luther
College; member of the Wisconsin Bar
Association; member of Board of
Directors, Friends of Boerner Botanical
Gardens; member of Board of Directors,
Milwaukee Repertory Theater.
[] WILLIAM J. SCHNEIDER Chairman of Miller-Valentine Partners
9/24/44 1997 Ltd., a real estate investment company;
333 W. Wacker Drive Board member ANNUAL 178 formerly, Senior Partner and Chief
Chicago, IL 60606 Operating Officer (retired, 2004) of
Miller-Valentine Group; formerly, Vice
President, Miller-Valentine Realty;
Board Member, Chair of the Finance
Committee and member of the Audit
Committee of Premier Health Partners,
the not-for-profit company of Miami
Valley Hospital; Vice President, Dayton
Philharmonic Orchestra Association;
Board Member, Regional Leaders Forum,
which promotes cooperation on economic
development issues; Director, Dayton
Development Coalition; formerly, Member,
Community Advisory Board, National City
Bank, Dayton, Ohio and Business Advisory
Council, Cleveland Federal Reserve Bank.
[] JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy
12/29/47 1997 Donnelley Foundation (since 1994); prior
333 W. Wacker Drive Board member CLASS I 178 thereto, Executive Director, Great Lakes
Chicago, IL 60606 Protection Fund (from 1990 to 1994).
[] CAROLE E. STONE Director, Chicago Board Options Exchange
6/28/47 2007 (since 2006); Chair New York Racing
333 West Wacker Drive Board member CLASS I 178 Association Oversight Board (since
Chicago, IL 60606 2005); Commissioner, New York State
Commission on Public Authority Reform
(since 2005); formerly Director, New
York State Division of the Budget
(2000-2004), Chair, Public Authorities
Control Board (2000-2004) and Director,
Local Government Assistance Corporation
(2000-2004).
83
Name, Position(s) Held Year First Number Principal
Birthdate with the Funds Elected or of Portfolios Occupation(s)
and Address Appointed(4) in Fund Complex During Past 5 Years
Overseen
by Officer
OFFICERS OF THE FUND:
[] GIFFORD R. ZIMMERMAN Managing Director (since 2002),
9/9/56 Chief Assistant Secretary and Associate
333 W. Wacker Drive Administrative 1988 178 General Counsel, formerly, Vice
Chicago, IL 60606 Officer President and Assistant General Counsel,
of Nuveen Investments, LLC; Managing
Director (since 2002), Associate General
Counsel and Assistant Secretary, of
Nuveen Asset Management; Vice President
and Assistant Secretary of NWQ
Investment Management Company, LLC.
(since 2002), Nuveen Investments
Advisers Inc. (since 2002), Symphony
Asset Management LLC, and NWQ Investment
Management Company, LLC (since 2003),
Tradewinds Global Investors, LLC, and
Santa Barbara Asset Management, LLC
(since 2006); Nuveen HydePark Group LLC
and Richards & Tierney, Inc. (since
2007); Managing Director, Associate
General Counsel and Assistant Secretary
of Rittenhouse Asset Management, Inc.
(since 2003); Managing Director (since
2004) and Assistant Secretary (since
1994) of Nuveen Investments, Inc.,
Assistant Secretary (since 2003) of
Symphony Asset Management LLC.
[] WILLIAMS ADAMS IV Executive Vice President, U.S.
6/9/55 Structured Products of Nuveen
333 West Wacker Drive Vice President 2007 120 Investments, LLC, (since 1999), prior
Chicago, IL 60606 thereto, Managing Director of Structured
Investments.
[] JULIA L. ANTONATOS Managing Director (since 2005), formerly
9/22/63 Vice President (since 2002) of Nuveen
333 W. Wacker Drive Vice President 2004 178 Investments, LLC; Chartered Financial
Chicago, IL 60606 Analyst.
[] CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004)
1/11/62 previously, Vice President (1993-2004)
333 W. Wacker Drive Vice President 2007 120 of Nuveen Investments, LLC.
Chicago, IL 60606
[] MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen
2/3/66 Vice President Investments, LLC.
333 W. Wacker Drive and Assistant 2000 178
Chicago, IL 60606 Secretary
[] PETER H. D'ARRIGO Vice President and Treasurer of Nuveen
11/28/67 Investments, LLC and Nuveen Investments,
333 W. Wacker Drive Vice President 1999 178 Inc.; Vice President and Treasurer of
Chicago, IL 60606 Nuveen Asset Management (since 2002),
Nuveen Investments Advisers Inc. (since
2002); NWQ Investment Management
Company, LLC. (since 2002); Rittenhouse
Asset Management, Inc. (since 2003),
Tradewinds NWQ Global Investors, LLC
(since 2006), Santa Barbara Asset
Management, LLC (since 2006) and Nuveen
HydePark Group, LLC and Richards
&Tierney, Inc. (since 2007); Treasurer
of Symphony Asset Management LLC (since
2003); formerly, Vice President and
Treasurer (1999-2004) of Nuveen Advisory
Corp. and Nuveen Institutional Advisory
Corp.(3), Chartered Financial Analyst.
[] LORNA C. FERGUSON Managing Director (since 2004),
10/24/45 formerly, Vice President of Nuveen
333 W. Wacker Drive Vice President 1998 178 Investments, LLC, Managing Director
Chicago, IL 60606 (2004) formerly, Vice President
(1998-2004) of Nuveen Advisory Corp. and
Nuveen Institutional Advisory Corp.(3);
Managing Director (since 2005) of Nuveen
Asset Management.
[] WILLIAM M. FITZGERALD Managing Director (since 2002),
3/2/64 formerly, Vice President of Nuveen
333 W. Wacker Drive Vice President 1995 178 Investments, LLC; Managing Director
Chicago, IL 60606 (1997-2004) of Nuveen Advisory Corp. and
Nuveen Institutional Advisory Corp.(3);
Managing Director (since 2001) of Nuveen
Asset Management; Vice President (since
2002) of Nuveen Investments Advisers
Inc.; Chartered Financial Analyst.
84
Name, Position(s) Held Year First Number Principal
Birthdate with the Funds Elected or of Portfolios Occupation(s)
and Address Appointed(4) in Fund Complex During Past 5 Years
Overseen
by Officer
OFFICERS OF THE FUND:
[] STEPHEN D. FOY Vice President (since 1993) and Funds
5/31/54 Vice President Controller (since 1998) of Nuveen
333 W. Wacker Drive and Controller 1998 178 Investments, LLC; formerly, Vice
Chicago, IL 60606 President and Funds Controller
(1998-2004) of Nuveen Investments, Inc.;
Certified Public Accountant.
[] WALTER M. KELLY Vice President (since 2006) formerly,
2/24/70 Chief Compliance Assistant Vice President and Assistant
333 West Wacker Drive Officer and 2003 178 General Counsel (2003-2006) of Nuveen
Chicago, IL 60606 Vice President Investments, LLC; Assistant Vice
President and Assistant Secretary of the
Nuveen Funds (2003-2006); previously,
Associate (2001-2003) at the law firm of
Vedder, Price, Kaufman & Kammholz.
[] DAVID J. LAMB
Investments, Vice President (since 2000) of Nuveen
3/22/63 LLC; Certified Public Accountant.
333 W. Wacker Drive Vice President 2000 178
Chicago, IL 60606
[] TINA M. LAZAR Vice President of Nuveen Investments, LLC
8/27/61 (since 1999).
333 W. Wacker Drive Vice President 2002 178
Chicago, IL 60606
[] LARRY W. MARTIN Vice President, Assistant Secretary and
7/27/51 Vice President Assistant General Counsel of Nuveen
333 W. Wacker Drive and Assistant 1988 178 Investments, LLC; formerly, Vice
Chicago, IL 60606 Secretary President and Assistant Secretary of
Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3); Vice
President (since 2005) and Assistant
Secretary of Nuveen Investments, Inc.;
Vice President (since 2005) and
Assistant Secretary (since 1997) of
Nuveen Asset Management; Vice President
(since 2000), Assistant Secretary and
Assistant General Counsel (since 1998)
of Rittenhouse Asset Management, Inc.;
Vice President and Assistant Secretary
of Nuveen Investments Advisers Inc.
(since 2002); NWQ Investment Management
Company, LLC (since 2002), Symphony
Asset Management LLC (since 2003),
Tradewinds NWQ Global Investors, LLC,
Santa Barbara Asset Management LLC
(since 2006) and of Nuveen HydePark
Group, LLC and Richards &Tierney, Inc.
(since 2007).
[] KEVIN J. MCCARTHY Vice President, Nuveen Investments, LLC
3/26/66 Vice President (since 2007); Vice President, and
333 W. Wacker Drive and Secretary 2007 178 Assistant Secretary, Nuveen Asset
Chicago, IL 60606 Management, Rittenhouse Asset
Management, Inc., Nuveen Investment
Advisers Inc., Nuveen Investment
Institutional Services Group LLC, NWQ
Investment Management Company, LLC,
Tradewinds Global Investors LLC,
NWQHoldings, LLC, Symphony Asset
Management LLC, Santa Barbara Asset
Management LLC, Nuveen HydePark Group,
LLC and Richards &Tierney, Inc. (since
2007); Vice President and Assistant
General Counsel, Nuveen Investments,
Inc. (since 2007). prior thereto,
Partner, Bell, Boyd & Lloyd LLP
(1997-2007).
[] JOHN V. MILLER Managing Director (since 2007),
4/10/67 formerly, Vice President (2002-2007) of
333 W. Wacker Drive Vice President 2007 178 Nuveen Investments, LLC; Chartered
Chicago, IL 60606 Financial Analyst.
[] JAMES F. RUANE Vice President, Nuveen Investments since
7/3/62 Vice President 2007; prior thereto, Partner, Deloitte &
333 W. Wacker Drive and Assistant 2007 178 Touche USA LLP (since 2005), formerly,
Chicago, IL 60606 Secretary senior tax manager (since 2002);
Certified Public Accountant.
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, by reason of being the former Chairman and
Chief Executive Officer of Nuveen Investments, Inc. and having previously
served in various other capacities with Nuveen Investments, Inc. and its
subsidiaries. It is expected that Mr. Schwertfeger will resign from the
Board of Trustees by the end of the Second quarter of 2008.
(2) For Insured New York Dividend Advantage (NKO) and Insured New York Tax-Free
Advantage (NRK), Board Members serve three year terms, except for two board
members who are elected by the holders of Preferred Shares. The Board of
Trustees for NKO and NRK is divided into three classes, Class I, Class II,
and Class III, with each being elected to serve until the third succeeding
annual shareholders' meeting subsequent to its election or thereafter in
each case when its respective successors are duly elected or appointed,
except two board members are elected by the holders of Preferred Shares to
serve until the next annual shareholders' meeting subsequent to its
election or thereafter in each case when its respective successors are duly
elected or appointed. For New York Investment Quality (NQN), New York
Select Quality (NVN) New York Quality Income (NUN) and Insured New York
Premium Income (NNF), the Board Members serve a one year term to serve
until the next annual meeting or until their successors shall have been
duly elected and qualified. The first year elected or appointed represents
the year in which the board member was first elected or appointed to any
fund in the Nuveen Complex.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
85
Annual Investment
Management Agreement
APPROVAL PROCESS
The Board Members are responsible for overseeing the performance of the
investment adviser to the Funds and determining whether to continue the advisory
arrangements. At the annual review meeting held on May 21, 2007 (the "May
Meeting"), the Board Members of the Funds, including the Independent Board
Members, unanimously approved the continuance of the Investment Management
Agreement between each Fund (each, a "Fund") and Nuveen Asset Management
("NAM"). The foregoing Investment Management Agreements with NAM are hereafter
referred to as the "Original Investment Management Agreements."
Subsequent to the May Meeting, Nuveen Investments, Inc. ("Nuveen"), the parent
company of NAM, entered into a merger agreement providing for the acquisition of
Nuveen by Windy City Investments, Inc., a corporation formed by investors led by
Madison Dearborn Partners, LLC ("MDP"), a private equity investment firm (the
"Transaction"). Each Original Investment Management Agreement, as required by
Section 15 of the Investment Company Act of 1940 (the "1940 Act"), provides for
its automatic termination in the event of its "assignment" (as defined in the
1940 Act). Any change in control of the adviser is deemed to be an assignment.
The consummation of the Transaction will result in a change of control of NAM as
well as its affiliated sub-advisers and therefore cause the automatic
termination of each Original Investment Management Agreement, as required by the
1940 Act. Accordingly, in anticipation of the Transaction, at a meeting held on
July 31, 2007 (the "July Meeting"), the Board Members, including the Independent
Board Members, unanimously approved new Investment Management Agreements (the
"New Investment Management Agreements") with NAM on behalf of each Fund to take
effect immediately after the Transaction or shareholder approval of the new
advisory contracts, whichever is later. The 1940 Act also requires that each New
Investment Management Agreement be approved by the respective Fund's
shareholders in order for it to become effective. Accordingly, to ensure
continuity of advisory services, the Board Members, including the Independent
Board Members, unanimously approved Interim Investment Management Agreements to
take effect upon the closing of the Transaction if shareholders have not yet
approved the New Investment Management Agreements.
Because the information provided and considerations made at the annual review
continue to be relevant with respect to the evaluation of the New Investment
Management Agreements, the Board considered the foregoing as part of its
deliberations of the New Investment Management Agreements. Accordingly, as
indicated, the discussions immediately below outline the materials and
information presented to the Board in connection with the Board's prior annual
review and the analysis undertaken and the conclusions reached by Board Members
when determining to continue the Original Investment Management Agreements.
I. APPROVAL OF THE ORIGINAL INVESTMENT MANAGEMENT AGREEMENTS
During the course of the year, the Board received a wide variety of materials
relating to the services provided by NAM and the performance of the Funds. At
each of its quarterly meetings, the Board reviewed investment performance and
various matters relating to the operations of the Funds and other Nuveen funds,
including the compliance program, shareholder services, valuation, custody,
distribution and other information relating to the nature, extent and quality of
services provided by NAM. Between the regularly scheduled quarterly meetings,
the Board Members received information on particular matters as the need arose.
In preparation for their considerations at the May Meeting, the Independent
Board Members received extensive materials, well in advance of the meeting,
which outlined or are related to, among other things:
[] the nature, extent and quality of services provided by NAM;
[] the organization and business operations of NAM, including the
responsibilities of various departments and key personnel;
86
[] each Fund's past performance as well as the Fund's performance compared to
funds with similar investment objectives based on data and information
provided by an independent third party and to customized benchmarks;
[] the profitability of Nuveen and certain industry profitability analyses for
unaffiliated advisers;
[] the expenses of Nuveen in providing the various services;
[] the advisory fees and total expense ratios of each Fund, including
comparisons of such fees and expenses with those of comparable,
unaffiliated funds based on information and data provided by an independent
third party (the "Peer Universe") as well as compared to a subset of funds
within the Peer Universe (the "Peer Group") of the respective Fund (as
applicable);
[] the advisory fees NAM assesses to other types of investment products or
clients;
[] the soft dollar practices of NAM, if any; and
[] from independent legal counsel, a legal memorandum describing among other
things, applicable laws, regulations and duties in reviewing and approving
advisory contracts.
At the May Meeting, NAM made a presentation to, and responded to questions from,
the Board. Prior to and after the presentations and reviewing the written
materials, the Independent Board Members met privately with their legal counsel
to review the Boardduties in reviewing advisory contracts and considering the
renewal of the advisory contracts. The Independent Board Members, in
consultation with independent counsel, reviewed the factors set out in judicial
decisions and Securities and Exchange Commission ("SEC") directives relating to
the renewal of advisory contracts. As outlined in more detail below, the Board
Members considered all factors they believed relevant with respect to each Fund,
including, but not limited to, the following: (a) the nature, extent and quality
of the services to be provided by NAM; (b) the investment performance of the
Fund and NAM; (c) the costs of the services to be provided and profits to be
realized by Nuveen and its affiliates; (d) the extent to which economies of
scale would be realized; and (e) whether fee levels reflect those economies of
scale for the benefit of the Fund's investors. In addition, as noted, the Board
Members met regularly throughout the year to oversee the Funds. In evaluating
the Original Investment Management Agreements, the Board Members also relied
upon their knowledge of NAM, its services and the Funds resulting from their
meetings and other interactions throughout the year. It is with this background
that the Board Members considered each Original Investment Management Agreement.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering the renewal of the Original Investment Management Agreements, the
Board Members considered the nature, extent and quality of NAM's services. The
Board Members reviewed materials outlining, among other things, Nuveen's
organization and business; the types of services that NAM or its affiliates
provide and are expected to provide to the Funds; the performance record of the
applicable Fund (as described in further detail below); and, any initiatives
Nuveen had taken for the municipal fund product line. As noted, at the annual
review, the Board Members were already familiar with the organization,
operations and personnel of NAM due to the Board Members' experience in
governing the respective Funds and working with NAM on matters relating to the
Funds. With respect to personnel, the Board Members recognized NAM's investment
in additional qualified personnel throughout the various groups in the
organization and recommended to NAM that it continue to review staffing needs as
necessary. In addition, the Board Members reviewed materials describing the
current status and, in particular, the developments in 2006 with respect to
NAM's investment process, investment strategies (including additional tools used
in executing such strategies), personnel (including portfolio management and
research teams), trading process, hedging activities, risk management operations
(e.g., reviewing credit quality, duration limits, and derivatives use, as
applicable), and investment operations (such as enhancements to trading
procedures, pricing procedures, and client services). The Board Members
recognized NAM's investment of resources and efforts to continue to enhance and
refine its investment process.
In addition to advisory services, the Independent Board Members considered the
quality of administrative and non-advisory services provided by NAM and noted
that NAM and its affiliates provide the Funds with a wide variety of services
and officers and other personnel as are necessary for the operations of the
Funds, including:
87
ANNUAL INVESTMENT MANAGEMENT AGREEMENT
APPROVAL PROCESS (continued)
[] product management;
[] fund administration;
[] oversight by shareholder services and other fund service providers;
[] administration of Board relations;
[] regulatory and portfolio compliance; and
[] legal support.
As the Funds operate in a highly regulated industry and given the importance of
compliance, the Board Members considered, in particular, Nuveen's compliance
activities for the Funds and enhancements thereto. In this regard, the Board
Members recognized the quality of Nuveen's compliance team. The Board Members
further noted Nuveen's negotiations with other service providers and the
corresponding reduction in certain service providers' fees at the May Meeting.
In addition to the foregoing services, the Board Members also noted the
additional services that NAM or its affiliates provide to Nuveen's closed-end
funds, including, in particular, its secondary market support activities. The
Board Members recognized Nuveen's continued commitment to supporting the
secondary market for the common shares of its closed-end funds through a variety
of programs designed to raise investor and analyst awareness and understanding
of closed-end funds. These efforts include:
[] maintaining shareholder communications;
[] providing advertising for the Nuveen closed-end funds;
[] maintaining its closed-end fund website;
[] maintaining continual contact with financial advisers;
[] providing educational symposia;
[] conducting research with investors and financial analysis regarding
closed-end funds; and
[] evaluating secondary market performance.
With respect to the Nuveen closed-end funds that utilize leverage through
the issuance of preferred shares ("Preferred Shares"), the Board Members
noted Nuveen's continued support for the holders of Preferred Shares by,
among other things:
[] maintaining an in-house trading desk;
[] maintaining a product manager for the Preferred Shares;
[] developing distribution for Preferred Shares with new market participants;
[] maintaining an orderly auction process;
[] managing leverage and risk management of leverage; and
[] maintaining systems necessary to test compliance with rating agency
criteria.
Based on their review, the Board Members found that, overall, the nature,
extent and quality of services provided (and expected to be provided) to
the respective Funds under the Original Investment Management Agreements
were satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM
At the May Meeting, the Board considered the investment performance for each
Fund, including the Fund's historic performance as well as its performance
compared to funds with similar investment objectives (the "Performance Peer
Group") based on data provided by an independent third party (as described
below). The Board Members also reviewed the respective Fund's portfolio level
performance (which does not reflect fund level fees and expenses, and leverage)
against customized benchmarks, described in further detail below.
88
In evaluating the performance information during the annual review at the May
Meeting, in certain instances, the Board Members noted that the closest
Performance Peer Group for a fund may not adequately reflect such fund's
investment objectives and strategies, thereby limiting the usefulness of the
comparisons of such fund's performance with that of the Performance Peer Group.
With respect to state-specific municipal funds, the Board Members also
recognized that certain funds do not have a corresponding state-specific
Performance Peer Group in which case their performance is measured against a
more general municipal category for various states. With respect to municipal
closed-end funds, funds that do not have corresponding state-specific
Performance Peer Groups are from states other than New York, California,
Florida, New Jersey, Michigan and Pennsylvania. However, with respect to funds
based in Florida, New Jersey, Michigan and Pennsylvania, the peer group may be
so small or the Nuveen funds may dominate the category to such an extent that
performance information for such funds was also compared to the more general
category for all states (other than New York and California).
The Board Members reviewed performance information including, among other
things, total return information compared with the Fund's Performance Peer Group
for the one-, three- and five-year periods (as applicable) ending December 31,
2006. The Board Members also reviewed the Fund's portfolio level performance
(which does not reflect fund level fees and expenses, and leverage) compared to
customized portfolio level benchmarks for the one- and three-year periods ending
December 31, 2006 (as applicable). The analysis was used to assess the efficacy
of investment decisions against appropriate measures of risk and total return,
within specific market segments. This information supplemented the Fund
performance information provided to the Board at each of its quarterly meetings.
Based on their review, the Board Members determined that each Fund's investment
performance over time had been satisfactory, subject to the following. With
respect to various municipal closed-end funds, the Board Members noted relative
total return underperformance in recent years compared to peers. The Board
Members reviewed materials and discussed with NAM the factors contributing to
the shift in performance including, among other things, the degree of risk
undertaken by peers compared to the municipal closed-end funds (such as through
the increased use of leverage or taking concentrated positions in high risk
credits). In addition, the Board Members also considered a fund's dividend
performance and the extent of any secondary market discounts. The Board Members
noted NAM's efforts to evaluate the factors affecting performance and determine
whether modification to a fund's investment strategy is necessary or
appropriate, and concluded that they were satisfied with the steps being taken.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
During the annual review, in evaluating the management fees and expenses of
a Fund, the Board reviewed, among other things, the Fund's advisory fees
(net and gross management fees) and total expense ratios (before and after
expense reimbursements and/or waivers) in absolute terms as well as
comparisons to the gross management fees (before waivers), net management
fees (after waivers) and total expense ratios (before and after waivers) of
comparable funds in the Peer Universe and the Peer Group. In reviewing the
fee schedule for a Fund, the Board Members considered the fund-level and
complex-wide breakpoint schedules (described in further detail below) and
any fee waivers and reimbursements provided by Nuveen (applicable, in
particular, for certain funds launched since 1999). The Board Members
further reviewed data regarding the construction of Peer Groups as well as
the methods of measurement for the fee and expense analysis and the
performance analysis. In certain cases, due to the small number of peers in
the Peer Universe, the Peer Universe and Peer Group had significant overlap
or even consisted entirely of the same unaffiliated funds. In reviewing the
comparisons of fee and expense information, the Board Members recognized
that in certain cases, the fund size relative to peers, the small size and
odd composition of the Peer Group (including differences in objectives and
strategies), expense anomalies, timing of information used or other factors
impacting the comparisons thereby limited some of the usefulness of the
comparative data. The Board Members also considered the differences in the
use of leverage. Based on their review of the fee and expense information
provided, the Board Members determined that each Fund's net total expense
ratio was within an acceptable range compared to peers.
89
ANNUAL INVESTMENT MANAGEMENT AGREEMENT
APPROVAL PROCESS (continued)
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
At the annual review, the Board Members further reviewed data comparing the
advisory fees of NAM with fees NAM charges to other clients. With respect
to municipal funds, such clients include NAM's municipal separately managed
accounts. In general, the advisory fees charged for separate accounts are
somewhat lower than the advisory fees assessed to the Funds. The Board
Members considered the differences in the product types, including, but not
limited to, the services provided, the structure and operations, product
distribution and costs thereof, portfolio investment policies, investor
profiles, account sizes and regulatory requirements. The Board Members
noted, in particular, that the range of services provided to the Funds (as
discussed above) is much more extensive than that provided to separately
managed accounts. As described in further detail above, such additional
services include, but are not limited to: product management, fund
administration, oversight of third party service providers, administration
of Board relations, and legal support. The Board Members noted that the
Funds operate in a highly regulated industry requiring extensive compliance
functions compared to other investment products. Given the inherent
differences in the products, particularly the extensive services provided
to the Funds, the Board Members believe such facts justify the different
levels of fees.
3. PROFITABILITY OF NUVEEN
In conjunction with its review of fees, the Board Members also considered
the profitability of Nuveen for its advisory activities (which incorporated
Nuveen's wholly-owned affiliated sub-advisers) and its financial condition.
At the annual review, the Board Members reviewed the revenues and expenses
of Nuveen's advisory activities for the last three years, the allocation
methodology used in preparing the profitability data as well as the 2006
Annual Report for Nuveen. The Board Members noted this information
supplemented the profitability information requested and received during
the year to help keep them apprised of developments affecting profitability
(such as changes in fee waivers and expense reimbursement commitments). In
this regard, the Board Members noted the enhanced dialogue and information
regarding profitability with NAM during the year, including more frequent
meetings and updates from Nuveen's corporate finance group. The Board
Members also reviewed data comparing Nuveen's profitability with other fund
sponsors prepared by three independent third party service providers as
well as comparisons of the revenues, expenses and profit margins of various
unaffiliated management firms with similar amounts of assets under
management prepared by Nuveen.
In reviewing profitability, the Board Members recognized the subjective
nature of determining profitability which may be affected by numerous
factors, including the allocation of expenses. Further, the Board Members
recognized the difficulties in making comparisons as the profitability of
other advisers generally is not publicly available and the profitability
information that is available for certain advisers or management firms may
not be representative of the industry and may be affected by, among other
things, the adviser's particular business mix, capital costs, types of
funds managed and expense allocations.
Notwithstanding the foregoing, the Board Members reviewed Nuveen's methodology
and assumptions for allocating expenses across product lines to determine
profitability. Last year, the Board Members also designated an Independent Board
Member as a point person for the Board to review the methodology determinations
during the year and any refinements thereto, which relevant information produced
from such process was reported to the full Board. In reviewing profitability,
the Board Members recognized Nuveen's increased investment in its fund business.
Based on its review, the Board Members concluded that Nuveen's level of
profitability for its advisory activities was reasonable in light of the
services provided.
In evaluating the reasonableness of the compensation, the Board Members also
considered other amounts paid to NAM by the Funds as well as any indirect
benefits (such as soft dollar arrangements, if any) NAM and its affiliates
receive, or are expected to receive, that are directly attributable to the
management of the Funds, if any. See Section E below for additional information
on indirect benefits NAM may receive as a result of its relationship with the
Funds. Based on their review of the overall fee arrangements of each Fund, the
Board Members determined that the advisory fees and expenses of the Funds were
reasonable.
90
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Board Members recognized the potential
benefits resulting from the costs of a Fund being spread over a larger asset
base. To help ensure the shareholders share in these benefits, the Board Members
reviewed and considered the breakpoints in the advisory fee schedules that
reduce advisory fees. In addition to advisory fee breakpoints, the Board also
approved a complex-wide fee arrangement in 2004. Pursuant to the complex-wide
fee arrangement, the fees of the funds in the Nuveen complex, including the
Funds, are reduced as the assets in the fund complex reach certain levels. In
evaluating the complex-wide fee arrangement, the Board Members noted that the
last complex-wide asset level breakpoint for the complex-wide fee schedule was
at $91 billion and that the Board Members anticipated further review and/or
negotiations prior to the assets of the Nuveen complex reaching such threshold.
Based on their review, the Board Members concluded that the breakpoint schedule
and complex-wide fee arrangement were acceptable and desirable in providing
benefits from economies of scale to shareholders, subject to further evaluation
of the complex-wide fee schedule as assets in the complex increase. See Section
II, Paragraph D - "Approval of the New Investment Management Agreements -
Economies of Scale and Whether Fee Levels Reflect These Economies of Scale" for
information regarding subsequent modifications to the complex-wide fee.
E. INDIRECT BENEFITS
In evaluating fees, the Board Members also considered any indirect benefits or
profits NAM or its affiliates may receive as a result of its relationship with
each Fund. With respect to closed-end funds, the Board Members considered the
revenues received by affiliates of NAM for serving as agent at Nuveen's
preferred trading desk and for serving as a co-manager in the initial public
offering of new closed-end exchange traded funds.
In addition to the above, the Board Members considered whether NAM received any
benefits from soft dollar arrangements whereby a portion of the commissions paid
by a Fund for brokerage may be used to acquire research that may be useful to
NAM in managing the assets of the Funds and other clients. With respect to NAM,
the Board Members noted that NAM does not currently have any soft dollar
arrangements; however, to the extent certain bona fide agency transactions that
occur on markets that traditionally trade on a principal basis and riskless
principal transactions are considered as generating "commissions," NAM intends
to comply with the applicable safe harbor provisions.
Based on their review, the Board Members concluded that any indirect benefits
received by NAM as a result of its relationship with the Funds were reasonable
and within acceptable parameters.
F. OTHER CONSIDERATIONS
The Board Members did not identify any single factor discussed previously as
all-important or controlling in their considerations to continue an advisory
contract. The Board Members, including the Independent Board Members,
unanimously concluded that the terms of the Original Investment Management
Agreements are fair and reasonable, that NAM's fees are reasonable in light of
the services provided to each Fund and that the renewal of the Original
Investment Management Agreements be approved.
II. APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENTS
Following the May Meeting, the Board Members were advised of the potential
Transaction. As noted above, the completion of the Transaction would terminate
each of the Original Investment Management Agreements. Accordingly, at the July
Meeting, the Board of each Fund, including the Independent Board Members,
unanimously approved the New Investment Management Agreements on behalf of the
respective Funds. Leading up to the July Meeting, the Board Members had several
meetings and deliberations with and without Nuveen management present, and with
the advice of legal counsel, regarding the proposed Transaction as outlined
below.
On June 8, 2007, the Board Members held a special telephonic meeting to discuss
the proposed Transaction. At that meeting, the Board Members established a
special ad hoc committee comprised solely of Independent Board Members to focus
on the Transaction and to keep the Independent Board Members updated with
developments regarding the Transaction. On June 15, 2007, the ad hoc committee
discussed with representatives of NAM the Transaction and modifications to the
complex-wide fee schedule that
91
ANNUAL INVESTMENT MANAGEMENT AGREEMENT
APPROVAL PROCESS (continued)
would generate additional fee savings at specified levels of complex-wide asset
growth. Following the foregoing meetings and several subsequent telephonic
conferences among Independent Board Members and independent counsel, and between
Independent Board Members and representatives of Nuveen, the Board met on June
18, 2007 to further discuss the proposed Transaction. Immediately prior to and
then again during the June 18, 2007 meeting, the Independent Board Members met
privately with their independent legal counsel. At that meeting, the Board met
with representatives of MDP, of Goldman Sachs, Nuveen's financial adviser in the
Transaction, and of the Nuveen Board to discuss, among other things, the history
and structure of MDP, the terms of the proposed Transaction (including the
financing terms), and MDP's general plans and intentions with respect to Nuveen
(including with respect to management, employees, and future growth prospects).
On July 9, 2007, the Board also met to be updated on the Transaction as part of
a special telephonic Board meeting. The Board Members were further updated at a
special in-person Board meeting held on July 19, 2007 (one Independent Board
Member participated telephonically). Subsequently, on July 27, 2007, the ad hoc
committee held a telephonic conference with representatives of Nuveen and MDP to
further discuss, among other things, the Transaction, the financing of the
Transaction, retention and incentive plans for key employees, the effect of
regulatory restrictions on transactions with affiliates after the Transaction,
and current volatile market conditions and their impact on the Transaction.
In connection with their review of the New Investment Management Agreements, the
Independent Board Members, through their independent legal counsel, also
requested in writing and received additional information regarding the proposed
Transaction and its impact on the provision of services by NAM and its
affiliates.
The Independent Board Members received, well in advance of the July Meeting,
materials which outlined, among other things:
[] the structure and terms of the Transaction, including MDP's co-investor
entities and their expected ownership interests, and the financing
arrangements that will exist for Nuveen following the closing of the
Transaction;
[] the strategic plan for Nuveen following the Transaction;
[] the governance structure for Nuveen following the Transaction;
[] any anticipated changes in the operations of the Nuveen funds following the
Transaction, including changes to NAM's and Nuveen's day-to-day management,
infrastructure and ability to provide advisory, distribution or other
applicable services to the Funds;
[] any changes to senior management or key personnel who work on Fund related
matters (including portfolio management, investment oversight, and
legal/compliance) and any retention or incentive arrangements for such
persons;
[] any anticipated effect on each Fund's expense ratio (including advisory
fees) following the Transaction;
[] any benefits or undue burdens imposed on the Funds as a result of the
Transaction;
[] any legal issues for the Funds as a result of the Transaction;
[] the nature, quality and extent of services expected to be provided to the
Funds following the Transaction, changes to any existing services and
policies affecting the Funds, and cost-cutting efforts, if any, that may
impact such services or policies;
[] any conflicts of interest that may arise for Nuveen or MDP with respect to
the Funds;
[] the costs associated with obtaining necessary shareholder approvals and who
would bear those costs; and
[] from legal counsel, a memorandum describing the applicable laws,
regulations and duties in approving advisory contracts, including, in
particular, with respect to a change of control.
92
Immediately preceding the July Meeting, representatives of MDP met with the
Board to further respond to questions regarding the Transaction. After the
meeting with MDP, the Independent Board Members met with independent legal
counsel in executive session. At the July Meeting, Nuveen also made a
presentation and responded to questions. Following the presentations and
discussions of the materials presented to the Board, the Independent Board
Members met again in executive session with their counsel. As outlined in more
detail below, the Independent Board Members considered all factors they believed
relevant with respect to each Fund, including the impact that the Transaction
could be expected to have on the following: (a) the nature, extent and quality
of services to be provided; (b) the investment performance of the Funds; (c) the
costs of the services and profits to be realized by Nuveen and its affiliates;
(d) the extent to which economies of scale would be realized; and (e) whether
fee levels reflect those economies of scale for the benefit of investors. As
noted above, the Board Members had completed their annual review of the
respective Original Investment Management Agreements at the May Meeting and many
of the factors considered at the annual review were applicable to their
evaluation of the New Investment Management Agreements. Accordingly, in
evaluating the New Investment Management Agreements, the Board Members relied
upon their knowledge and experience with NAM and considered the information
received and their evaluations and conclusions drawn at the annual review. While
the Board reviewed many Nuveen funds at the July Meeting, the Independent Board
Members evaluated all information available to them on a fund-by-fund basis, and
their determinations were made separately in respect of each Fund.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In evaluating the nature, quality and extent of the services expected to be
provided by NAM under the New Investment Management Agreements, the Independent
Board Members considered, among other things, the expected impact, if any, of
the Transaction on the operations, facilities, organization and personnel of
NAM; the potential implications of regulatory restrictions on the Funds
following the Transaction; the ability of NAM and its affiliates to perform
their duties after the Transaction; and any anticipated changes to the current
investment and other practices of the Funds.
The Board noted that the terms of each New Investment Management Agreement,
including the fees payable thereunder, are substantially identical to those of
the Original Investment Management Agreement relating to the same Fund (with
both reflecting reductions to fee levels in the complex-wide fee schedule for
complex-wide assets in excess of $80 billion that have an effective date of
August 20, 2007). The Board considered that the services to be provided and the
standard of care under the New Investment Management Agreements are the same as
the Original Investment Management Agreements. The Board Members further noted
that key personnel who have responsibility for the Funds in each area, including
portfolio management, investment oversight, fund management, fund operations,
product management, legal/compliance and board support functions, are expected
to be the same following the Transaction. The Board Members considered and are
familiar with the qualifications, skills and experience of such personnel. The
Board also considered certain information regarding anticipated retention or
incentive plans designed to retain key personnel. Further, the Board Members
noted that no changes to Nuveen's infrastructure or operations as a result of
the Transaction were anticipated other than potential enhancements as a result
of an expected increase in the level of investment in such infrastructure and
personnel. The Board noted MDP's representations that it does not plan to have a
direct role in the management of Nuveen, appointing new management personnel, or
directly impacting individual staffing decisions. The Board Members also noted
that there were not any planned "cost cutting" measures that could be expected
to reduce the nature, extent or quality of services. After consideration of the
foregoing, the Board Members concluded that no diminution in the nature, quality
and extent of services provided to the Funds and their shareholders is expected.
In addition to the above, the Board Members considered potential changes in the
operations of each Fund. In this regard, the Board Members considered the
potential effect of regulatory restrictions on the Funds' transactions with
future affiliated persons. During their deliberations, it was noted that, after
the Transaction, a subsidiary of Merrill Lynch is expected to have an ownership
interest in Nuveen at a level that will make Merrill Lynch an affiliated person
of Nuveen. The Board Members recognized that applicable law would generally
prohibit the Funds from engaging in securities transactions with Merrill Lynch
as principal, and would also impose restrictions on using Merrill Lynch for
agency transactions. They recognized that having MDP and Merrill Lynch as
affiliates may restrict the Nuveen funds' ability to invest in securities of
issuers controlled by MDP or issued by Merrill Lynch and its affiliates even if
not bought directly from MDP or Merrill
93
ANNUAL INVESTMENT MANAGEMENT AGREEMENT
APPROVAL PROCESS (continued)
Lynch as principal. They also recognized that various regulations may require
the Nuveen funds to apply investment limitations on a combined basis with
affiliates of Merrill Lynch. The Board Members considered information provided
by NAM regarding the potential impact on the Nuveen funds' operations as a
result of these regulatory restrictions. The Board Members considered, in
particular, the Nuveen funds that may be impacted most by the restricted access
to Merrill Lynch, including: municipal funds (particularly certain
state-specific funds), senior loan funds, taxable fixed income funds, preferred
security funds and funds that heavily use derivatives. The Board Members
considered such funds' historic use of Merrill Lynch as principal in their
transactions and information provided by NAM regarding the expected impact
resulting from Merrill Lynch's affiliation with Nuveen and available measures
that could be taken to minimize such impact. NAM informed the Board Members
that, although difficult to determine with certainty, its management did not
believe that MDP's or Merrill Lynch's status as an affiliate of Nuveen would
have a material adverse effect on any Nuveen fund's ability to pursue its
investment objectives and policies.
In addition to the regulatory restrictions considered by the Board, the Board
Members also considered potential conflicts of interest that could arise between
the Nuveen funds and various parties to the Transaction and discussed possible
ways of addressing such conflicts.
Based on its review along with its considerations regarding services at the
annual review, the Board concluded that the Transaction was not expected to
adversely affect the nature, quality or extent of services provided by NAM and
that the expected nature, quality and extent of such services supported approval
of the New Investment Management Agreements.
B. PERFORMANCE OF THE FUNDS
With respect to the performance of the Funds, the Board considered that the
portfolio management personnel responsible for the management of the Funds'
portfolios were expected to continue to manage the portfolios following the
completion of the Transaction.
In addition, the Board Members recently reviewed Fund performance at the May
Meeting, as described above, and determined that Fund performance was
satisfactory or better, subject to the following. With respect to certain
municipal closed-end funds with relative short-term underperformance, the Board
Members concluded NAM was taking steps to evaluate the factors affecting
performance and those steps would continue following the Transaction. Further,
the investment policies and strategies were not expected to change as a result
of the Transaction.
In light of the foregoing factors, along with the prior findings regarding
performance at the annual review, the Board concluded that its findings with
respect to performance supported approval of the New Investment Management
Agreements.
C. FEES, EXPENSES AND PROFITABILITY
As described in more detail above, during the annual review, the Board Members
considered, among other things, the management fees and expenses of the Funds,
the breakpoint schedules, and comparisons of such fees and expenses with peers.
At the annual review, the Board Members determined that the respective Fund's
advisory fees and expenses were reasonable. In evaluating the costs of services
to be provided by NAM under the New Investment Management Agreements and the
profitability of Nuveen for its advisory activities, the Board Members
considered their prior conclusions at the annual review and whether the
management fees or other expenses would change as a result of the Transaction.
As described above, the investment management fee is composed of two
components--a fund-level component and complex-wide level component. The fee
schedule under the New Investment Management Agreements to be paid to NAM is
identical to that under the Original Investment Management Agreements, including
the modified complex-wide fee schedule. As noted above, the Board recently
approved a modified complex-wide fee schedule that would generate additional fee
savings on complex-wide assets above $80 billion. The modifications have an
effective date of August 20, 2007 and are part of the Original Investment
Management Agreements. Accordingly, the terms of the complex-wide component
under the New Investment Management Agreements are the same as under the
Original Investment Management Agreements. The Board Members also noted that
Nuveen has committed for a period of two years from the
94
date of closing of the Transaction that it will not increase gross management
fees for any Nuveen fund and will not reduce voluntary expense reimbursement
levels for any Nuveen fund from their currently scheduled prospective levels.
Based on the information provided, the Board Members did not expect that overall
Fund expenses would increase as a result of the Transaction.
In addition, the Board Members considered that additional fund launches were
anticipated after the Transaction which would result in an increase in total
assets under management in the complex and a corresponding decrease in overall
management fees under the complex-wide fee schedule. Taking into consideration
the Board's prior evaluation of fees and expenses at the annual renewal, and the
modification to the complex-wide fee schedule, the Board determined that the
management fees and expenses were reasonable.
While it is difficult to predict with any degree of certainty the impact of the
Transaction on Nuveen's profitability, at the recent annual review, the Board
Members were satisfied that Nuveen's level of profitability for its advisory
activities was reasonable. During the year, the Board Members had noted the
enhanced dialogue regarding profitability and the appointment of an Independent
Board Member as a point person to review methodology determinations and
refinements in calculating profitability. Given their considerations at the
annual review and the modifications to the complex-wide fee schedule, the Board
Members were satisfied that Nuveen's level of profitability for its advisory
activities continues to be reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
The Board Members have been cognizant of economies of scale and the potential
benefits resulting from the costs of a Fund being spread over a larger asset
base. To help ensure that shareholders share in the benefits derived from
economies of scale, the Board adopted the complex-wide fee arrangement in 2004.
At the May Meeting, the Board Members reviewed the complex-wide fee arrangements
and noted that additional negotiations may be necessary or appropriate as the
assets in the complex approached the $91 billion threshold. In light of this
assessment coupled with the upcoming Transaction, at the June 15, 2007 meeting,
the ad hoc committee met with representatives of Nuveen to further discuss
modifications to the complex-wide fee schedule that would generate additional
savings for shareholders as the assets of the complex grow. The proposed terms
for the complex-wide fee schedule are expressed in terms of targeted cumulative
savings at specified levels of complex-wide assets, rather than in terms of
targeted marginal complex-wide fee rates. Under the modified schedule, the
schedule would generate additional fee savings beginning at complex-wide assets
of $80 billion in order to achieve targeted cumulative annual savings at $91
billion of $28 million on a complex-wide level (approximately $0.6 million
higher than those generated under the then current schedule) and generate
additional fee savings for asset growth above complex-wide assets of $91 billion
in order to achieve targeted annual savings at $125 billion of assets of
approximately $50 million on a complex-wide level (approximately $2.2 million
higher annually than that generated under the then current schedule). At the
July Meeting, the Board approved the modified complex-wide fee schedule for the
Original Investment Management Agreements and these same terms will apply to the
New Investment Management Agreements. Accordingly, the Board Members believe
that the breakpoint schedules and revised complex-wide fee schedule are
appropriate and desirable in ensuring that shareholders participate in the
benefits derived from economies of scale.
E. INDIRECT BENEFITS
During their recent annual review, the Board Members considered any indirect
benefits that NAM may receive as a result of its relationship with the Funds, as
described above. As the policies and operations of Nuveen are not anticipated to
change significantly after the Transaction, such indirect benefits should remain
after the Transaction. The Board Members further considered any additional
indirect benefits to be received by NAM or its affiliates after the Transaction.
The Board Members noted that other than benefits from its ownership interest in
Nuveen and indirect benefits from fee revenues paid by the Funds under the
management agreements and other Board-approved relationships, it was currently
not expected that MDP or its affiliates would derive any benefit from the Funds
as a result of the Transaction or transact any business with or on behalf of the
Funds (other than perhaps potential Fund acquisitions, in secondary market
transactions, of securities issued by MDP portfolio companies); or that Merrill
Lynch or its affiliates would derive any benefits from the Funds as a result of
the Transaction (noting that, indeed, Merrill Lynch would stand to experience
the discontinuation of principal transaction activity with the Nuveen funds and
likely would experience a noticeable reduction in the volume of agency
transactions with the Nuveen funds).
95
ANNUAL INVESTMENT MANAGEMENT AGREEMENT
APPROVAL PROCESS (continued)
F. OTHER CONSIDERATIONS
In addition to the factors above, the Board Members also considered the
following with respect to the Funds:
[] Nuveen would rely on the provisions of Section 15(f) of the 1940 Act.
Section 15(f) provides, in substance, that when a sale of a controlling
interest in an investment adviser occurs, the investment adviser or any of
its affiliated persons may receive any amount or benefit in connection with
the sale so long as (i) during the three-year period following the
consummation of a transaction, at least 75% of the investment company's
board of directors must not be "interested persons" (as defined in the 1940
Act) of the investment adviser or predecessor adviser and (ii) an "unfair
burden" (as defined in the 1940 Act, including any interpretations or
no-action letters of the SEC) must not be imposed on the investment company
as a result of the transaction relating to the sale of such interest, or
any express or implied terms, conditions or understanding applicable
thereto. In this regard, to help ensure that an unfair burden is not
imposed on the Nuveen funds, Nuveen has committed for a period of two years
from the date of the closing of the Transaction (i) not to increase gross
management fees for any Nuveen fund; (ii) not to reduce voluntary expense
reimbursement levels for any Nuveen fund from their currently scheduled
prospective levels during that period; (iii) that no Nuveen fund whose
portfolio is managed by a Nuveen affiliate shall use Merrill Lynch as a
broker with respect to portfolio transactions done on an agency basis,
except as may be approved in the future by the Compliance Committee of the
Board; and (iv) that NAM shall not cause the Funds and other municipal
funds that NAM manages, as a whole, to enter into portfolio transactions
with or through the other minority owners of Nuveen, on either a principal
or an agency basis, to a significantly greater extent than both what one
would expect an investment team to use such firm in the normal course of
business, and what NAM has historically done, without prior Board or
Compliance Committee approval (excluding the impact of proportionally
increasing the use of such other "minority owners" to fill the void
necessitated by not being able to use Merrill Lynch).
[] The Funds would not incur any costs in seeking the necessary shareholder
approvals for the New Investment Management Agreements (except for any
costs attributed to seeking shareholder approvals of Fund specific matters
unrelated to the Transaction, such as approval of Board Members, in which
case a portion of such costs will be borne by the applicable Funds).
[] The reputation, financial strength and resources of MDP.
[] The long-term investment philosophy of MDP and anticipated plans to grow
Nuveen's business to the benefit of the Nuveen funds.
[] The benefits to the Nuveen funds as a result of the Transaction including:
(i) as a private company, Nuveen may have more flexibility in making
additional investments in its business; (ii) as a private company, Nuveen
may be better able to structure compensation packages to attract and retain
talented personnel; (iii) as certain of Nuveen's distribution partners are
expected to be equity or debt investors in Nuveen, Nuveen may be able to
take advantage of new or enhanced distribution arrangements with such
partners; and (iv) MDP's experience, capabilities and resources that may
help Nuveen identify and acquire investment teams or firms and finance such
acquisitions.
[] The historic premium and discount levels at which the shares of the Nuveen
funds have traded at specified dates with particular focus on the premiums
and discounts after the announcement of the Transaction, taking into
consideration recent volatile market conditions and steps or initiatives
considered or undertaken by NAM to address discount levels.
96
G. CONCLUSION
The Board Members did not identify any single factor discussed previously as
all-important or controlling. The Board Members, including the Independent Board
Members, unanimously concluded that the terms of the New Investment Management
Agreements are fair and reasonable, that the fees therein are reasonable in
light of the services to be provided to each Fund and that the New Investment
Management Agreements should be approved and recommended to shareholders.
III. APPROVAL OF INTERIM CONTRACTS
As noted above, at the July Meeting, the Board Members, including the
Independent Board Members, unanimously approved the Interim Investment
Management Agreements. If necessary to assure continuity of advisory services,
the Interim Investment Management Agreements will take effect upon the closing
of the Transaction if shareholders have not yet approved the New Investment
Management Agreements. The terms of each Interim Investment Management Agreement
are substantially identical to those of the corresponding Original Investment
Management Agreement and New Investment Management Agreement, respectively,
except for certain term and escrow provisions. In light of the foregoing, the
Board Members, including the Independent Board Members, unanimously determined
that the scope and quality of services to be provided to the Funds under the
respective Interim Investment Management Agreement are at least equivalent to
the scope and quality of services provided under the applicable Original
Investment Management Agreement.
97
Reinvest Automatically
EASILY and CONVENIENTLY
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price per share may exceed
the market price at the time of valuation, resulting in the acquisition of fewer
shares than if the dividend or distribution had been paid in shares issued by
the Fund. A pro rata portion of any applicable brokerage commissions on open
market purchases will be paid by Plan participants. These commissions usually
will be lower than those charged on individual transactions.
98
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
99
NOTES
100
NOTES
101
Glossary of
TERMS USED in this REPORT
[] AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period.
It expresses the return that would have been necessary each year to equal
the investment's actual cumulative performance (including change in NAV or
market price and reinvested dividends and capital gains distributions, if
any) over the time period being considered.
[] AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments or
the exercise of call provisions unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
[] INVERSE FLOATERS: Inverse floating rate securities are created by
depositing a municipal bond, typically with a fixed interest rate, into a
special purpose trust created by a broker-dealer. This trust, in turn, (a)
issues floating rate certificates typically paying short-term tax-exempt
interest rates to third parties in amounts equal to some fraction of the
deposited bond's par amount or market value, and (b) issues an inverse
floating rate certificate (sometimes referred to as an "inverse floater")
to an investor (such as a Fund) interested in gaining investment exposure
to a long-term municipal bond. The income received by the holder of the
inverse floater varies inversely with the short-term rate paid to the
floating rate certificates' holders, and in most circumstances the holder
of the inverse floater bears substantially all of the underlying bond's
downside investment risk. The holder of the inverse floater typically also
benefits disproportionately from any potential appreciation of the
underlying bond's value. Hence, an inverse floater essentially represents
an investment in the underlying bond on a leveraged basis.
[] LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period
over which a bond's principal and interest will be paid, and consequently
is a measure of the sensitivity of a bond's or bond Fund's value to changes
when market interest rates change. Generally, the longer a bond's or Fund's
duration, the more the price of the bond or Fund will change as interest
rates change. Leverage-adjusted duration takes into account the leveraging
process for a Fund and therefore is longer than the duration of the Fund's
portfolio of bonds.
[] MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
[] NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then
dividing the remainder by the number of shares outstanding. Fund NAVs are
calculated at the end of each business day.
[] TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal bond
investment.
[] ZERO COUPON BOND: A zero coupon bond does not pay a regular interest coupon
to its holders during the life of the bond. Tax-exempt income to the holder
of the bond comes from accretion of the difference between the original
purchase price of the bond at issuance and the par value of the bond at
maturity and is effectively paid at maturity. The market prices of zero
coupon bonds generally are more volatile than the market prices of bonds
that pay interest periodically.
102
Other Useful INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
twelve-month period ended June 30, 2007, and (iii) a description of the policies
and procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the Exchange the annual CEO
certification as required by Section 303A.12(a) of the NYSE Listed Company
Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
INVESTMENT POLICY CHANGES
In May 2007, the Funds' Board of Directors/Trustees voted to permit the Funds'
to make loans from Fund assets to certain bond issuers. The amounts of these
loans are subject to strict limits. This policy is designed to enhance the
Funds' ability to meet their Funds' investment objectives by providing for
increased portfolio management flexibility, greater diversification potential,
and opportunities for increased capital appreciation over time.
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Carole E. Stone
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. During the
period covered by this report, NQN, NVN, and NUN repurchased 97,300, 118,800,
and 171,600 common shares, respectively. Any future repurchases will be reported
to shareholders in the next annual or semi-annual report.
103
Nuveen Investments:
--------------------------------------------------------------------------------
SERVING INVESTORS FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing $170 billion in assets as of September 30, 2007, Nuveen Investments
offers access to a number of different asset classes and investing solutions
through a variety of products. Nuveen Investments markets its capabilities under
six distinct brands: Nuveen, a leader in fixed-income investments; NWQ, a leader
in value-style equities; Rittenhouse, a leader in growth-style equities;
Symphony, a leading institutional manager of market-neutral alternative
investment portfolios; Santa Barbara, a leader in growth equities; and
Tradewinds, a leader in global equities.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest. Be sure to obtain a
prospectus, where applicable. Investors should consider the investment objective
and policies, risk considerations, charges and expenses of the Fund carefully
before investing. The prospectus contains this and other information relevant to
an investment in the Fund. For a prospectus, please contact your securities
representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606.
Please read the prospectus carefully before you invest or send money.
LEARN MORE ABOUT NUVEEN FUNDS AT: WWW.NUVEEN.COM/ETF
SHARE PRICES
FUND DETAILS
DAILY FINANCIAL NEWS
INVESTOR EDUCATION
INTERACTIVE PLANNING TOOLS
EAN-B-0907D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/etf. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees determined that the registrant
has at least one "audit committee financial expert" (as defined in Item 3 of
Form N-CSR) serving on its Audit Committee. The registrant's audit committee
financial expert is Jack B. Evans, Chairman of the Audit Committee, who is
"independent" for purposes of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen Insured New York Tax-Free Advantage Municipal Fund
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP the Audit Committee approved in advance all
audit services and non-audit services that Ernst & Young LLP provided to the
Fund, except for those non-audit services that were subject to the pre-approval
exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The
pre-approval exception for services provided directly to the Fund waives the
pre-approval requirement for services other than audit, review or attest
services if: (A) the aggregate amount of all such services provided constitutes
no more than 5% of the total amount of revenues paid by the Fund to its
accountant during the fiscal year in which the services are provided; (B) the
Fund did not recognize the services as non-audit services at the time of the
engagement; and (C) the services are promptly brought to the Audit Committee's
attention, and the Committee (or its delegate) approves the services before the
audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4)
----------------------------------------------------------------------------------------------------------------------------------
September 30, 2007 $ 8,438 $ 0 $ 500 $ 1,550
----------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
----------------------------------------------------------------------------------------------------------------------------------
September 30, 2006 $ 8,011 $ 0 $ 400 $ 2,950
----------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
----------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for the
audit of the Fund's annual financial statements and services provided in
connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and related
services reasonably related to the performance of the audit or review of
financial statements and are not reported under "Audit Fees".
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
(4) "All Other Fees" are the aggregate fees billed for products and services
for agreed upon procedures engagements performed for leveraged funds.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM ("Control Affiliate") that
provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for
engagements directly related to the Fund's operations and financial reporting,
during the Fund's last two full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
---------------------------------------------------------------------------------------------------------
September 30, 2007 $ 0 $ 0 $ 0
---------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
---------------------------------------------------------------------------------------------------------
September 30, 2006 $ 0 $ 0 $ 0
---------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
---------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. The Audit
Committee is required to pre-approve non-audit services that Ernst & Young LLP
provides to the Adviser and any Affiliated Fund Services Provider, if the
engagement related directly to the Fund's operations and financial reporting
(except for those subject to the de minimis exception described above). The
Audit Committee requested and received information from Ernst & Young LLP about
any non-audit services that Ernst & Young LLP rendered during the Fund's last
fiscal year to the Adviser and any Affiliated Fund Service Provider. The
Committee considered this information in evaluating Ernst & Young LLP's
independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
-----------------------------------------------------------------------------------------------------------------------
September 30, 2007 $ 2,050 $ 0 $ 0 $ 2,050
September 30, 2006 $ 3,350 $ 0 $ 0 $ 3,350
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax
Fees" billed to Adviser in their respective amounts from the previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the Audit Committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the Audit Committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the Audit Committee at
the next Audit Committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board of Directors or Trustees has a separately designated
Audit Committee established in accordance with Section 3(a)(58)(A) of the
Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The
members of the audit committee are Robert P. Bremner, Jack B. Evans, William J.
Schneider and David J. Kundert. Mr. Eugene S. Sunshine, who also served as a
member of the Committee during this reporting period, resigned from the Board of
Directors effective July 31, 2007.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The registrant invests its assets primarily in municipal bonds and cash
management securities. On rare occasions the registrant may acquire, directly or
through a special purpose vehicle, equity securities of a municipal bond issuer
whose bonds the registrant already owns when such bonds have deteriorated or are
expected shortly to deteriorate significantly in credit quality. The purpose of
acquiring equity securities generally will be to acquire control of the
municipal bond issuer and to seek to prevent the credit deterioration or
facilitate the liquidation or other workout of the distressed issuer's credit
problem. In the course of exercising control of a distressed municipal issuer,
NAM may pursue the registrant's interests in a variety of ways, which may entail
negotiating and executing consents, agreements and other arrangements, and
otherwise influencing the management of the issuer. NAM does not consider such
activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but
nevertheless provides reports to the registrant's Board of Trustees on its
control activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
would either engage an independent third party to determine how the proxy should
be voted or vote the proxy with the consent, or based on the instructions, of
the registrant's Board of Trustees or its representative. A member of NAM's
legal department would oversee the administration of the voting, and ensure that
records were maintained in accordance with Rule 206(4)-6, reports were filed
with the SEC on Form N-PX, and the results provided to the registrant's Board of
Trustees and made available to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO MANAGER
The following individual has primary responsibility for the day-to-day
implementation of the registrant's investment strategies:
NAME FUND
CATHRYN P. STEEVES Nuveen Insured New York Tax-Free Advantage Municipal Fund
Other Accounts Managed. In addition to managing the registrant, the portfolio
manager is also primarily responsible for the day-to-day portfolio management of
the following accounts:
NUMBER OF
PORTFOLIO MANAGER TYPE OF ACCOUNT MANAGED ACCOUNTS ASSETS
--------------------------------------------------------------------------------
Cathryn P. Steeves Registered Investment Company 41 $8.259 billion
Other Pooled Investment Vehicles 0 $0
Other Accounts 0 $0
* Assets are as of September 30, 2007. None of the assets in these accounts
are subject to an advisory fee based on performance.
Compensation. Each portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation, including
these three elements, to the market in order to create a compensation structure
that is competitive and consistent with similar financial services companies. As
discussed below, several factors are considered in determining each portfolio
manager's total compensation. In any year these factors may include, among
others, the effectiveness of the investment strategies recommended by the
portfolio manager's investment team, the investment performance of the accounts
managed by the portfolio manager, and the overall performance of Nuveen
Investments, Inc. (the parent company of NAM). Although investment performance
is a factor in determining the portfolio manager's compensation, it is not
necessarily a decisive factor. The portfolio manager's performance is evaluated
in part by comparing manager's performance against a specified investment
benchmark. This fund-specific benchmark is a customized subset (limited to bonds
in each Fund's specific state and with certain maturity parameters) of the
S&P/Investortools Municipal Bond index, an index comprised of bonds held by
managed municipal bond fund customers of Standard & Poor's Securities Pricing,
Inc. that are priced daily and whose fund holdings aggregate at least $2
million. As of October 31, 2007, the S&P/Investortools Municipal Bond Index was
comprised of 51,960 securities with an aggregate current market value of $1,017
billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
the NAM's investment team, the performance of the accounts for which he serves
as portfolio manager relative to any benchmarks established for those accounts,
his effectiveness in communicating investment performance to stockholders and
their representatives, and his contribution to the NAM's investment process and
to the execution of investment strategies. The cash bonus component is also
impacted by the overall performance of Nuveen Investments, Inc. in achieving its
business objectives.
Long-term incentive compensation. Each portfolio manager is eligible to receive
bonus compensation in the form of equity-based awards issued in securities
issued by Nuveen Investments, Inc. The amount of such compensation is dependent
upon the same factors articulated for cash bonus awards but also factors in his
long-term potential with the firm.
Material Conflicts of Interest. Each portfolio manager's simultaneous management
of the registrant and the other accounts noted above may present actual or
apparent conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the Registrant and the other account. NAM,
however, believes that such potential conflicts are mitigated by the fact that
the NAM has adopted several policies that address potential conflicts of
interest, including best execution and trade allocation policies that are
designed to ensure (1) that portfolio management is seeking the best price for
portfolio securities under the circumstances, (2) fair and equitable allocation
of investment opportunities among accounts over time and (3) compliance with
applicable regulatory requirements. All accounts are to be treated in a
non-preferential manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager, although the
allocation procedures may provide allocation preferences to funds with special
characteristics (such as favoring state funds versus national funds for
allocations of in-state bonds). In addition, NAM has adopted a Code of Conduct
that sets forth policies regarding conflicts of interest.
Beneficial Ownership of Securities. As of September 30, 2007, the portfolio
manager beneficially owned the following dollar range of equity securities
issued by the Registrant and other Nuveen Funds managed by NAM's municipal
investment team.
DOLLAR RANGE OF
EQUITY SECURITIES
DOLLAR RANGE OF BENEFICIALLY OWNED
EQUITY IN THE REMAINDER OF
SECURITIES NUVEEN FUNDS MANAGED
BENEFICIALLY BY NAM'S MUNICIPAL
NAME OF PORTFOLIO MANAGER FUND OWNED IN FUND INVESTMENT TEAM
----------------------------------------------------------------------------------------------------------------
Nuveen Insured New York Tax-Free Advantage $0 $10,000-$50,000
Cathryn Steeves Municipal Fund
PORTFOLIO MANAGER BIO:
Cathryn P. Steeves, PhD is currently a portfolio manager for 42 state-specific
municipal bond funds. She joined Nuveen in 1996 and worked as a senior analyst
in the healthcare sector. Ms. Steeves has an undergraduate degree from Wake
Forest University, an MA, MPhil and a PhD from Columbia University.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrants Board implemented after the registrant
last provided disclosure in response to this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because the code is posted on registrant's website at www.nuveen.com/etf and
there were no amendments during the period covered by this report. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then Code of Conduct.)
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Insured New York Tax-Free Advantage Municipal Fund
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By (Signature and Title)* /s/ Kevin J. McCarthy
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Kevin J. McCarthy
Vice President and Secretary
Date: December 6, 2007
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
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Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: December 6, 2007
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By (Signature and Title)* /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: December 6, 2007
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* Print the name and title of each signing officer under his or her signature.