ThZeal - The Zeal

N-CSRS 1 file001.txt NUVEEN INSURED NEW YORK TAX-FREE ADV MUNI FUND 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 --------------------- 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 ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Kevin J. McCarthy Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: (312) 917-7700 ------------------- Date of fiscal year end: September 30 ------------------ Date of reporting period: March 31, 2008 ------------------ Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. SEMI-ANNUAL REPORT March 31, 2008 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 Photo of: Man working on computer LIFE IS COMPLEX. NUVEEN MAKES THINGS E-simple. ---------------------------------------------------------------------------- It only takes a minute to sign up for e-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Investments Fund information is ready--no more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on your computer if you wish. FREE E-REPORTS RIGHT TO YOUR E-MAIL! www.investordelivery.com If you receive your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR www.nuveen.com/accountaccess If you receive your Nuveen Fund dividends and statements directly from Nuveen. Logo: NUVEEN Investments 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 six-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 Managers' Comments, the Common Share Dividend and Share Price Information, and the Performance Overview sections of this report. 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 May 15, 2008 Portfolio Manager's COMMENTS Nuveen Investments Municipal Closed-End Funds NQN, NVN, NUN, NNF, NKO, NRK Portfolio manager Cathryn Steeves examines key investment strategies and the six-month performance of the Nuveen New York Funds. Cathryn, who joined Nuveen in 1996, assumed portfolio management responsibility for these six Funds in 2006. WHAT KEY STRATEGIES WERE USED TO MANAGE THESE NEW YORK FUNDS DURING THE SIX-MONTH REPORTING PERIOD ENDED MARCH 31, 2008? During this six-month period, the municipal market experienced a great deal of volatility, as factors related to the sub-prime mortgage crisis had an indirect, but important, influence on the municipal market's performance. We sought to capitalize on this environment by continuing to focus on relative value, as we looked for undervalued sectors and individual credits with the potential to perform well over the long term. The majority of our purchases were attractively-priced, higher coupon bonds in the longer part of the municipal bond yield curve. These purchases helped to offset the shortening of the Funds' portfolio durations due to bond calls and the natural tendency of bond durations(1) to shorten as time passes. To generate cash for purchases and move the Funds' durations closer to our strategic range, we selectively sold some holdings with shorter durations. Selling shorter duration bonds and reinvesting further out on the yield curve also helped to improve the Funds' overall call protection profiles. In addition, we took advantage of strong bids to sell some sub-5% coupon bonds that were attractive to the retail market. Over the course of the entire reporting period, we saw the municipal yield curve steepen, as municipal bond interest rates at the short end of the curve declined while longer-term rates rose. In this environment, we continued to emphasize a disciplined approach to duration management. As part of our duration strategies, we used inverse floating rate securities,(2) a type of derivative financial instrument, in all six of these Funds. Inverse floaters typically provide the dual benefit of lengthening the Funds' durations to be closer to our strategic target and enhancing their income-generation capabilities. NUN and NRK also used forward interest rate swaps, another type of derivative financial instrument. The goal of this strategy was to help us manage the common share net asset value (NAV) volatility of these two Funds without having a negative impact on their income streams or common share dividends over the short term. (1) Duration is a measure of a bond's price sensitivity as interest rates change, with longer duration bonds displaying more sensitivity to these changes than bonds with shorter durations. (2) 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. 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 HOW DID THE FUNDS PERFORM? Individual results for these Nuveen New York Funds, as well as relevant index and peer group information, are presented in the accompanying table. Total Returns on Common Share Net Asset Value* For periods ended 3/31/08 Six-Month 1-Year 5-Year 10-Year NQN -1.02% -0.32% 3.93% 5.75% NVN -1.72% -1.34% 3.99% 5.48% NUN -1.68% -1.18% 3.70% 5.25% NNF -1.35% -1.00% 3.71% 5.26% NKO -1.32% -0.74% 4.75% NA NRK -0.23% 0.58% 5.17% NA Lehman Brothers NY Insured Tax-Exempt Bond Index(3) 0.53% 1.82% 3.89% 5.16% Lipper NY Insured Municipal Debt Funds Average(4) -2.58% -2.27% 3.97% 4.96% For the six months ended March 31, 2008, the cumulative returns on common share NAV for all six of these New York Funds underperformed the return of the Lehman Brothers New York Insured Tax-Exempt Bond Index. At the same time, the six-month returns for all of these Funds outperformed the average return for the Lipper New York Insured Municipal Debt Funds Average. One of the major factors impacting the six-month performance of these Funds, especially in relation to that of the unleveraged Lehman Brothers New York Insured Tax-Exempt Bond Index, was the use of financial leverage. While leverage provides opportunities for additional income and total returns for common shareholders, the benefits of leveraging are tied in part to the short-term rates that leveraged Funds pay their preferred shareholders. During this period, the Funds' borrowing costs remained relatively high, negatively impacting their total returns. Other key factors that influenced the Funds' returns included yield curve and duration positioning, credit exposure and sector allocations, the use of derivatives, and holdings of bonds backed by certain municipal bond insurers. During this six-month period, bonds in the Lehman Brothers Municipal Bond Index with maturities of eight years or less, especially those maturing in two to four years, benefited the most from changes in the interest rate environment. As a result, these shorter maturity bonds generally outperformed credits with longer maturities. Bonds having the longest maturities (22 years and longer) posted the worst returns. While NRK benefited from having the shortest maturity among these Funds, on the whole the Funds were overexposed to the longer part of the yield curve, with NVN and NUN having the longest durations. This had a negative impact on their performance. *Six-month returns are cumulative; returns for one-year, five-year, and ten-year are annualized. Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. For additional information, see the individual Performance Overview for your Fund in this report. (3) 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. (4) The Lipper New York Insured Municipal Debt Funds Average is calculated using the returns of all closed-end funds in this category for each period as follows: 6 months, 12 funds; 1 year, 12 funds; 5 years, 12 funds; and 10 years, 7 funds. Fund and Lipper returns assume reinvestment of dividends. 5 As mentioned earlier, both NUN and NRK used forward interest rate swaps. In NRK, these derivatives were used to synthetically extend the Fund's duration and move it closer to our strategic duration target. Despite the fact that longer duration instruments generally performed poorly, the use of forward interest rate swaps had a positive impact on NRK's return performance. This was due to the fact that the interest rate swaps provided exposure to taxable markets during a period when, in contrast to historical trends, the Treasury market and the municipal market moved in the opposite directions. As municipal market performance lagged the significant gains made by Treasuries, the interest rate swaps performed very well. However, in NUN, which had a duration that exceeded our target, the interest rate swaps were used to synthetically shorten duration. These positions, which reduced duration in the outperforming taxable markets, hurt NUN's performance. In addition, the inverse floaters used by all six of these Funds had a negative impact on performance. This resulted from the fact that the inverse floaters effectively increased the Funds' exposure to longer maturity bonds during a period when shorter maturities were in favor in the market. However, the inverse floaters also benefited the Funds by helping to support their income streams. In general, these six Funds had smaller positions in inverse floaters than their peers in the Lipper New York Insured Municipal Debt Funds Average, which helped the relative performance of the Nuveen New York Funds. In general, bonds with higher credit quality outperformed those with lower credit quality during the past six months. The underperformance of the lower quality sector was largely the result of risk-averse investors' flight to quality as disruptions in the financial and housing markets deepened. The performances of these six insured Funds generally benefited from their higher quality holdings. NKO and NRK, which are Dividend Advantage Funds, also have the ability to invest up to 20% of their assets in uninsured investment-grade quality securities. As of March 31, 2008, NKO and NRK each had allocations of approximately 4% in bonds rated BBB, which did not perform well as credit spreads widened. This allocation had a negative impact on the performance of these two Funds. In NRK, however, this was largely offset by the Fund's shorter maturity and use of forward interest rate swaps, as mentioned earlier. On the whole, bonds that carried any credit risk, regardless of sector, tended to perform poorly. Revenue bonds as a whole, and especially the industrial development and health care sectors that had ranked among the top performers in the Lehman Brothers Municipal Bond Index over the past few years, underperformed the general municipal market. The housing sector also performed poorly. Sectors of the market that generally contributed to the Funds' performances included water and sewer, resource recovery, special tax, and electric utilities. Pre-refunded bonds(5) performed exceptionally well, due primarily to their shorter effective maturities and higher credit quality. Among these Funds, NRK had the heaviest weighting in pre-refunded bonds. (5) 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. 6 Another factor that had an impact on the performance of the New York Funds was their position in bonds backed by certain municipal insurers. All of these Funds had exposure to bonds insured by Ambac Assurance Corporation, MBIA Insurance Corporation (MBIA), Financial Guaranty Insurance Company (FGIC) and Financial Security Assurance (FSA). As concern increased about the balance sheets of municipal bond insurers, prices on bonds insured by these companies declined, detracting from the performance of the Funds. On the whole, the insured holdings of our Funds continued to be well diversified. RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES AND FUND POLICY CHANGES The portfolios of investments reflect the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of March 31, 2008. During March 2008, at least one rating agency reduced the rating for AMBAC-insured bonds to AA and at least one rating agency further reduced the ratings for CIFG-insured, FGIC-insured and XLCA-insured bonds. Subsequent to March 31, 2008, at least one rating agency reduced the rating for MBIA-insured bonds to AA. As of March 31, 2008, one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers. It is important to note that municipal bonds historically have had a very low rate of default. During March 2008, the Nuveen Funds' Board of Directors/Trustees approved changes to the investment policies of all of the Nuveen insured municipal closed-end funds. The new policies require that (1) at least 80% of a Fund's net assets must be invested in insured municipal bonds guaranteed by insurers rated "A" or better by at least one rating agency at the time of purchase; (2) at least 80% of a Fund's net assets must be invested in municipal bonds rated "AA" or better by at least one rating agency (with or without insurance), deemed to be of comparable quality by the Adviser, or backed by an escrow or trust containing sufficient U.S. Government or Government agency securities at the time of purchase; and (3) up to 20% of a Fund's net assets may be invested in uninsured municipal bonds rated "A" to "BBB" by at least one rating agency or deemed to be of comparable quality by the Adviser at the time of purchase. These policy changes are designed to increase portfolio manager flexibility and retain the insured nature of the Funds' investment portfolios for current and future environments. Some Funds may require shareholder approval prior to implementing these policy changes. 7 RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED MARKETS Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the auction preferred shares issued by these Funds than there were offers to buy. This meant that these auctions "failed to clear" and that many or all auction preferred shareholders who wanted to sell their shares in these auctions were unable to do so. This decline in liquidity in auction preferred shares did not lower the credit quality of these shares, and auction preferred shareholders unable to sell their shares received distributions at the "maximum rate" calculated in accordance with the pre-established terms of the auction preferred shares. At the time this report was prepared, the Funds' managers could not predict when future auctions might succeed in attracting sufficient buyers for the shares offered, if ever. The Funds' managers are working diligently to develop mechanisms designed to improve the liquidity of the auction preferred shares, or to refund them, but at present there is no assurance that these efforts will succeed. These developments generally do not affect the management or investment policies of these Funds. However, one implication of these auction failures for common shareholders is that the Funds' cost of leverage will be higher than it otherwise would have been had the auctions continued to be successful. As a result, the Funds' future common share earnings may be lower than they otherwise would have been. For current, up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at: http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx. 8 Common Share Dividend and Share Price INFORMATION The common share dividends of all six of these Nuveen New York Funds remained stable throughout the six-month reporting period ended March 31, 2008. Due to capital gains generated by normal portfolio activity, common shareholders of the following Funds received capital gains and net ordinary income distributions at the end of December 2007 as follows: Short-Term Capital Gains Long-Term Capital Gains and/or Ordinary Income (per share) (per share) NVN $0.0095 $0.0002 NUN $0.0104 -- NKO $0.0272 -- NRK $0.0017 -- All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund's past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund's common share NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund's common share NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of March 31, 2008, all of the Funds in this report except NQN had positive UNII balances, based upon our best estimate, for tax purposes and negative UNII balances for financial statement purposes. NQN had a positive UNII balance, based upon our best estimate, for tax purposes, and a positive UNII balance for financial statement purposes. 9 COMMON 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 March 31, 2008, NQN, NVN and NUN had repurchased 119,000, 124,400 and 179,300 common shares, respectively, representing approximately 0.7%, 0.5% and 0.8% of the Funds' total common shares outstanding, respectively. As of March 31, 2008, the Funds' share prices were trading at discounts to their common share NAVs as shown in the accompanying chart: 3/31/08 Six-Month Average Discount Discount NQN -8.53% -10.32% NVN -10.42% -11.26% NUN -10.54% -11.35% NNF -8.41% -11.18% NKO -8.95% -9.67% NRK -7.56% -6.16% 10 NQN Performance OVERVIEW Nuveen New York Investment Quality Municipal Fund, Inc. as of March 31, 2008 Pie Chart: Credit Quality (as a % of total investments)(1) Insured 94% U.S. Guaranteed 5% FHA/FNMA/GNMA Guaranteed 1% Bar Chart: 2007-2008 Monthly Tax-Free Dividends Per Common Share Apr 0.0555 May 0.0555 Jun 0.0555 Jul 0.0555 Aug 0.0555 Sep 0.0555 Oct 0.0555 Nov 0.0555 Dec 0.0555 Jan 0.0555 Feb 0.0555 Mar 0.0555 Line Chart: Common Share Price Performance -- Weekly Closing Price 4/01/07 14.23 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 13.7 13.46 13.24 13.35 13.3 13.25 12.86 12.65 12.93 13.24 13.34 13 12.84 12.89 13.6 13.71 13.49 13.59 13.63 13.67 13.1 12.89 12.6 12.91 12.68 12.62 13.07 3/31/08 13.09 FUND SNAPSHOT ------------------------------------ Common Share Price $13.09 ------------------------------------ Common Share Net Asset Value $14.31 ------------------------------------ Premium/(Discount) to NAV -8.53% ------------------------------------ Market Yield 4.77% ------------------------------------ Taxable-Equivalent Yield(2) 7.11% ------------------------------------ Net Assets Applicable to Common Shares ($000) $251,925 ------------------------------------ Average Effective Maturity on Securities (Years) 15.88 ------------------------------------ Leverage-Adjusted Duration 9.35 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/20/90) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) -2.16% -1.02% ------------------------------------ 1-Year -3.39% -0.32% ------------------------------------ 5-Year 3.86% 3.93% ------------------------------------ 10-Year 4.04% 5.75% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 33.7% ------------------------------------ Health Care 14.9% ------------------------------------ Transportation 11.4% ------------------------------------ Education and Civic Organizations 10.5% ------------------------------------ Tax Obligation/General 10.2% ------------------------------------ U.S. Guaranteed 5.4% ------------------------------------ Other 13.9% ------------------------------------ (1) The percentages shown in the foregoing chart reflect the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of March 31, 2008. As explained earlier in the Portfolio Manager's Comments section of this report, at least one rating agency reduced the rating for AMBAC-insured bonds to AA and at least one rating agency further reduced the ratings for CIFG-insured, FGIC-insured and XLCA-insured bonds. Subsequent to March 31, 2008, at least one rating agency reduced the rating for MBIA-insured bonds to AA. As of March 31, 2008, one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers, and thereby reduce the percentage of the ratings shown in the foregoing chart. (2) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a 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. 11 NVN Performance OVERVIEW Nuveen New York Select Quality Municipal Fund, Inc. as of March 31, 2008 Pie Chart: Credit Quality (as a % of total investments)(1) Insured 91% U.S. Guaranteed 9% Bar Chart: 2007-2008 Monthly Tax-Free Dividends Per Common Share(3) Apr 0.0595 May 0.0595 Jun 0.0565 Jul 0.0565 Aug 0.0565 Sep 0.0565 Oct 0.053 Nov 0.053 Dec 0.053 Jan 0.053 Feb 0.053 Mar 0.053 Line Chart: Common Share Price Performance -- Weekly Closing Price 4/01/07 14.94 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 13.86 13.65 13.5 13.4501 13.25 13.31 12.83 12.64 12.85 13.07 13.08 12.88 12.86 13.13 13.69 13.8 13.56 13.66 13.69 13.75 13 12.93 12.52 12.96 12.61 12.6 12.87 3/31/08 12.9 FUND SNAPSHOT ------------------------------------ Common Share Price $12.90 ------------------------------------ Common Share Net Asset Value $14.40 ------------------------------------ Premium/(Discount) to NAV -10.42% ------------------------------------ Market Yield 4.93% ------------------------------------ Taxable-Equivalent Yield(2) 7.35% ------------------------------------ Net Assets Applicable to Common Shares ($000) $335,746 ------------------------------------ Average Effective Maturity on Securities (Years) 16.99 ------------------------------------ Leverage-Adjusted Duration 10.35 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 5/22/91) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) -4.60% -1.72% ------------------------------------ 1-Year -8.70% -1.34% ------------------------------------ 5-Year 3.34% 3.99% ------------------------------------ 10-Year 4.09% 5.48% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 31.4% ------------------------------------ Education and Civic Organizations 13.4% ------------------------------------ Health Care 12.9% ------------------------------------ Tax Obligation/General 10.9% ------------------------------------ U.S. Guaranteed 8.9% ------------------------------------ Utilities 7.0% ------------------------------------ Transportation 6.0% ------------------------------------ Other 9.5% ------------------------------------ (1) The percentages shown in the foregoing chart reflect the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of March 31, 2008. As explained earlier in the Portfolio Manager's Comments section of this report, at least one rating agency reduced the rating for AMBAC-insured bonds to AA and at least one rating agency further reduced the ratings for CIFG-insured, FGIC-insured and XLCA-insured bonds. Subsequent to March 31, 2008, at least one rating agency reduced the rating for MBIA-insured bonds to AA. As of March 31, 2008, one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers, and thereby reduce the percentage of the ratings shown in the foregoing chart. (2) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a 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. (3) The Fund paid shareholders capital gains and net ordinary income distributions in December 2007 of $0.0097 per share. 12 NUN Performance OVERVIEW Nuveen New York Quality Income Municipal Fund, Inc. as of March 31, 2008 Pie Chart: Credit Quality (as a % of total investments)(1),(2) Insured 90% U.S. Guaranteed 9% FHA/FNMA/ GNMA Guaranteed 1% Bar Chart: 2007-2008 Monthly Tax-Free Dividends Per Common Share(4) Apr 0.054 May 0.054 Jun 0.051 Jul 0.051 Aug 0.051 Sep 0.051 Oct 0.051 Nov 0.051 Dec 0.051 Jan 0.051 Feb 0.051 Mar 0.051 Line Chart: Common Share Price Performance -- Weekly Closing Price 4/01/07 14.37 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 13.46 13.37 13.3 13.22 13.2 13.17 12.76 12.57 12.81 12.86 12.93 12.68 12.65 12.95 13.48 13.51 13.5 13.43 13.42 13.46 12.9 12.84 12.44 12.86 12.44 12.5 12.86 3/31/08 12.73 FUND SNAPSHOT ------------------------------------ Common Share Price $12.73 ------------------------------------ Common Share Net Asset Value $14.23 ------------------------------------ Premium/(Discount) to NAV -10.54% ------------------------------------ Market Yield 4.81% ------------------------------------ Taxable-Equivalent Yield(3) 7.17% ------------------------------------ Net Assets Applicable to Common Shares ($000) $340,164 ------------------------------------ Average Effective Maturity on Securities (Years) 15.96 ------------------------------------ Leverage-Adjusted Duration 10.03 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/20/91) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) -3.10% -1.68% ------------------------------------ 1-Year -7.08% -1.18% ------------------------------------ 5-Year 3.56% 3.70% ------------------------------------ 10-Year 3.93% 5.25% ------------------------------------ INDUSTRIES (as a % of total investments)(2) ------------------------------------ Tax Obligation/Limited 33.2% ------------------------------------ Education and Civic Organizations 13.9% ------------------------------------ Health Care 10.2% ------------------------------------ Transportation 10.0% ------------------------------------ U.S. Guaranteed 9.4% ------------------------------------ Tax Obligation/General 9.0% ------------------------------------ Utilities 6.3% ------------------------------------ Other 8.0% ------------------------------------ (1) The percentages shown in the foregoing chart reflect the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of March 31, 2008. As explained earlier in the Portfolio Manager's Comments section of this report, at least one rating agency reduced the rating for AMBAC-insured bonds to AA and at least one rating agency further reduced the ratings for CIFG-insured, FGIC-insured and XLCA-insured bonds. Subsequent to March 31, 2008, at least one rating agency reduced the rating for MBIA-insured bonds to AA. As of March 31, 2008, one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers, and thereby reduce the percentage of the ratings shown in the foregoing chart. (2) Excluding derivative transactions. (3) 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. (4) The Fund paid shareholders a capital gains distribution in December 2007 of $0.0104 per share. 13 NNF Performance OVERVIEW Nuveen Insured New York Premium Income Municipal Fund, Inc. as of March 31, 2008 Pie Chart: Credit Quality (as a % of total investments)(1) Insured 94% U.S. Guaranteed 6% Bar Chart: 2007-2008 Monthly Tax-Free Dividends Per Common Share Apr 0.057 May 0.057 Jun 0.054 Jul 0.054 Aug 0.054 Sep 0.054 Oct 0.0505 Nov 0.0505 Dec 0.0505 Jan 0.0505 Feb 0.0505 Mar 0.0505 Line Chart: Common Share Price Performance -- Weekly Closing Price 4/01/07 14.59 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 13.54 13.64 13.38 13.46 13.29 13.36 13.05 12.6 12.75 12.97 13.12 12.82 12.78 12.96 13.55 13.63 13.45 13.53 13.548 13.59 12.99 12.88 12.65 12.91 12.64 12.61 13.1 3/31/08 13.17 FUND SNAPSHOT ------------------------------------ Common Share Price $13.17 ------------------------------------ Common Share Net Asset Value $14.38 ------------------------------------ Premium/(Discount) to NAV -8.41% ------------------------------------ Market Yield 4.60% ------------------------------------ Taxable-Equivalent Yield(2) 6.86% ------------------------------------ Net Assets Applicable to Common Shares ($000) $119,785 ------------------------------------ Average Effective Maturity on Securities (Years) 16.32 ------------------------------------ Leverage-Adjusted Duration 9.66 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 12/17/92) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) -0.49% -1.35% ------------------------------------ 1-Year -5.38% -1.00% ------------------------------------ 5-Year 3.13% 3.71% ------------------------------------ 10-Year 4.52% 5.26% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 33.6% ------------------------------------ Education and Civic Organizations 15.2% ------------------------------------ Health Care 15.1% ------------------------------------ Transportation 9.4% ------------------------------------ Tax Obligation/General 7.0% ------------------------------------ Water and Sewer 6.3% ------------------------------------ U.S. Guaranteed 5.6% ------------------------------------ Other 7.8% ------------------------------------ (1) The percentages shown in the foregoing chart reflect the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of March 31, 2008. As explained earlier in the Portfolio Manager's Comments section of this report, at least one rating agency reduced the rating for AMBAC-insured bonds to AA and at least one rating agency further reduced the ratings for CIFG-insured, FGIC-insured and XLCA-insured bonds. Subsequent to March 31, 2008, at least one rating agency reduced the rating for MBIA-insured bonds to AA. As of March 31, 2008, one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers, and thereby reduce the percentage of the ratings shown in the foregoing chart. (2) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a 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. 14 NKO Performance OVERVIEW Nuveen Insured New York Dividend Advantage Municipal Fund as of March 31, 2008 Pie Chart: Credit Quality (as a % of total investments)(1) Insured 83% U.S. Guaranteed 8% FHA/FNMA/GNMA Guaranteed 2% AA (Uninsured) 3% BBB (Uninsured) 4% Bar Chart: 2007-2008 Monthly Tax-Free Dividends Per Common Share(3) Apr 0.0615 May 0.0615 Jun 0.058 Jul 0.058 Aug 0.058 Sep 0.058 Oct 0.055 Nov 0.055 Dec 0.055 Jan 0.055 Feb 0.055 Mar 0.055 Line Chart: Common Share Price Performance -- Weekly Closing Price 4/01/07 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 14.1 13.9 13.97 13.55 13.45 13.43 13.1 13 12.98 13.17 13.33 13.25 12.95 13.21 13.93 13.89 13.7356 13.84 14.0001 14.04 13.32 13.23 12.85 13.26 12.95 12.93 13.12 3/31/08 13.12 FUND SNAPSHOT ------------------------------------ Common Share Price $13.12 ------------------------------------ Common Share Net Asset Value $14.41 ------------------------------------ Premium/(Discount) to NAV -8.95% ------------------------------------ Market Yield -5.03% ------------------------------------ Taxable-Equivalent Yield(2) 7.50% ------------------------------------ Net Assets Applicable to Common Shares ($000) $114,749 ------------------------------------ Average Effective Maturity on Securities (Years) 16.61 ------------------------------------ Leverage-Adjusted Duration 9.02 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) -4.46% -1.32% ------------------------------------ 1-Year -10.88% -0.74% ------------------------------------ 5-Year 3.80% 4.75% ------------------------------------ Since Inception 3.94% 6.11% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 26.7% ------------------------------------ Health Care 16.0% ------------------------------------ Education and Civic Organizations 13.8% ------------------------------------ Tax Obligation/General 9.6% ------------------------------------ Transportation 8.6% ------------------------------------ Utilities 8.2% ------------------------------------ U.S. Guaranteed 8.1% ------------------------------------ Other 9.0% ------------------------------------ (1) The percentages shown in the foregoing chart reflect the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of March 31, 2008. As explained earlier in the Portfolio Manager's Comments section of this report, at least one rating agency reduced the rating for AMBAC-insured bonds to AA and at least one rating agency further reduced the ratings for CIFG-insured, FGIC-insured and XLCA-insured bonds. Subsequent to March 31, 2008, at least one rating agency reduced the rating for MBIA-insured bonds to AA. As of March 31, 2008, one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers, and thereby reduce the percentage of the ratings shown in the foregoing chart. (2) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a 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. (3) The Fund paid shareholders a capital gains distribution in December 2007 of $0.0272 per share. 15 NRK Performance OVERVIEW Nuveen Insured New York Tax-Free Advantage Municipal Fund as of March 31, 2008 Pie Chart: Credit Quality (as a % of total investments)(1) Insured 74% U.S. Guaranteed 18% FHA/FNMA/GNMA Guaranteed 1% AA (Uninsured) 3% BBB (Uninsured) 4% Bar Chart: 2007-2008 Monthly Tax-Free Dividends Per Common Share(3) Apr 0.0545 May 0.0545 Jun 0.0545 Jul 0.0545 Aug 0.0545 Sep 0.0545 Oct 0.0545 Nov 0.0545 Dec 0.0545 Jan 0.0545 Feb 0.0545 Mar 0.0545 Line Chart: Common Share Price Performance -- Weekly Closing Price 4/01/07 14.8274 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 13.74 14.0201 14 14.11 14.03 13.95 13.79 13.28 13.8 14.09 14.03 13.61 13.85 13.5 14.1401 14.3 14.15 13.85 14 14.106 13.37 13.2 13 13.04 13.49 12.98 13.14 3/31/08 13.21 FUND SNAPSHOT ------------------------------------ Common Share Price $13.21 ------------------------------------ Common Share Net Asset Value $14.29 ------------------------------------ Premium/(Discount) to NAV -7.56% ------------------------------------ Market Yield 4.95% ------------------------------------ Taxable-Equivalent Yield(2) 7.38% ------------------------------------ Net Assets Applicable to Common Shares ($000) $50,222 ------------------------------------ Average Effective Maturity on Securities (Years) 14.21 ------------------------------------ Leverage-Adjusted Duration 9.15 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/21/02) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) -1.51% -0.23% ------------------------------------ 1-Year -7.28% 0.58% ------------------------------------ 5-Year 3.32% 5.17% ------------------------------------ Since Inception 2.99% 5.15% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 30.2% ------------------------------------ U.S. Guaranteed 18.2% ------------------------------------ Education and Civic Organizations 15.6% ------------------------------------ Health Care 15.4% ------------------------------------ Transportation 8.4% ------------------------------------ Tax Obligation/General 6.0% ------------------------------------ Other 6.2% ------------------------------------ (1) The percentages shown in the foregoing chart reflect the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of March 31, 2008. As explained earlier in the Portfolio Manager's Comments section of this report, at least one rating agency reduced the rating for AMBAC-insured bonds to AA and at least one rating agency further reduced the ratings for CIFG-insured, FGIC-insured and XLCA-insured bonds. Subsequent to March 31, 2008, at least one rating agency reduced the rating for MBIA-insured bonds to AA. As of March 31, 2008, one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers, and thereby reduce the percentage of the ratings shown in the foregoing chart. (2) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a 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. (3) The Fund paid shareholders a capital gains distribution in December 2007 of $0.0017 per share. 16 NQN NVN NUN Shareholder MEETING REPORT The special meeting of shareholders was held in the offices of Nuveen Investments on October 12, 2007; the meetings for NQN, NVN, NUN, NNF, NKO and NRK were subsequently adjourned to October 22, 2007 and additionally adjourned to November 8, 2007; NKO was also adjourned to November 12, 2007 and November 30, 2007.

17 NNF NKO NRK Shareholder MEETING REPORT (continued)

18 NQN Nuveen New York Investment Quality Municipal Fund, Inc. Portfolio of INVESTMENTS March 31, 2008 (Unaudited)

FORWARD SWAPS OUTSTANDING AT MARCH 31, 2008: FUND FIXED RATE UNREALIZED NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (7) DATE (DEPRECIATION) ------------------------------------------------------------------------------------------------------------------------------------ Goldman Sachs $2,250,000 Receive 3-Month USD-LIBOR 5.593% Semi-Annually 10/01/08 10/01/37 $(313,122) ==================================================================================================================================== USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate).

As of March 31, 2008, 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: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments reflects the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of March 31, 2008. During March 2008, at least one rating agency reduced the rating for AMBAC-insured bonds to AA and at least one rating agency further reduced the ratings for CIFG-insured, FGIC-insured and XLCA-insured bonds. Subsequent to March 31, 2008, at least one rating agency reduced the rating for MBIA-insured bonds to AA. As of March 31, 2008, one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Portion of investment, with an aggregate market value of $281,831, has been pledged to collateralize the net payment obligations under forward swap contracts. (6) Preferred Shares, at Liquidation Value as a percentage of total investments is (36.2)%. (7) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. (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. 41 NNF Nuveen Insured New York Premium Income Municipal Fund, Inc. Portfolio of INVESTMENTS March 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 23.6% (15.2% 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 $ 265,268 250 5.750%, 8/01/25 - AMBAC Insured 8/10 at 102.00 AAA 262,633 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 1,613,895 500 5.500%, 7/01/40 - AMBAC Insured No Opt. Call AAA 527,180 4,820 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 Aaa 4,881,788 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 831,052 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 AA- 1,065,180 Bonds, State University Dormitory Facilities, Series 2003B, 5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured 635 Dormitory Authority of the State of New York, Lease Revenue 7/15 at 100.00 AAA 639,172 Bonds, State University Dormitory Facilities, Series 2004A, 5.000%, 7/01/29 - MBIA Insured 970 Dormitory Authority of the State of New York, Lease Revenue 7/16 at 100.00 AAA 972,522 Bonds, State University Dormitory Facilities, Series 2006A, 5.000%, 7/01/31 - MBIA Insured 255 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 A3 248,855 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 AA- 781,606 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 272,043 200 5.250%, 7/01/21 - AMBAC Insured No Opt. Call Aaa 216,186 1,000 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 1,097,720 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 AA- 1,345,959 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 2,488,750 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 AA- 2,039,432 Appropriation Lease Bonds, Upstate Community Colleges, Series 2005A, 5.000%, 7/01/19 - FGIC Insured 1,520 Madison County Industrial Development Agency, New York, 7/15 at 100.00 AAA 1,513,844 Civic Facility Revenue Bonds, Colgate University, Series 2005A, 5.000%, 7/01/40 - AMBAC Insured 1,110 New York City Industrial Development Agency, New York, 1/17 at 100.00 AAA 1,080,518 PILOT Revenue Bonds, Queens Baseball Stadium Project, Series 2006, 5.000%, 1/01/46 - AMBAC Insured New York City Industrial Development Authority, New York, PILOT Revenue Bonds, Yankee Stadium Project, Series 2006: 415 5.000%, 3/01/31 - FGIC Insured 9/16 at 100.00 A3 406,663 2,360 5.000%, 3/01/36 - MBIA Insured 9/16 at 100.00 AAA 2,342,347 2,025 4.500%, 3/01/39 - FGIC Insured 9/16 at 100.00 A3 1,801,541 42 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) $ 1,250 New York City Trust for Cultural Resources, New York, Revenue 7/08 at 101.00 AAA $ 1,264,413 Refunding Bonds, Museum of Modern Art, Series 1996A, 5.500%, 1/01/21 - AMBAC Insured 345 New York State Dormitory Authority, Revenue Bonds, New York 7/17 at 100.00 Aaa 346,497 University, Series 2007, 5.000%, 7/01/32 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 27,570 Total Education and Civic Organizations 28,305,064 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 23.5% (15.1% OF TOTAL INVESTMENTS) 3,000 Dormitory Authority of the State of New York, FHA-Insured 8/08 at 100.00 AAA 3,003,510 Mortgage Hospital Revenue Bonds, Ellis Hospital, Series 1995, 5.600%, 8/01/25 - MBIA Insured 2,910 Dormitory Authority of the State of New York, FHA-Insured 8/08 at 101.00 AAA 2,852,120 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 1,429,596 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 840,491 Mortgage Revenue Bonds, Hudson Valley Hospital Center, Series 2007, 5.000%, 8/15/27 - FSA Insured 1,405 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 A3 1,392,172 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 3,087,870 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 620,626 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 2,810,336 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 2,098,555 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 732,208 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, 7/08 at 102.00 AAA 1,533,015 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 3,457,521 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 1,082,950 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 1,688,505 1,000 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 1,039,080 435 New York State Dormitory Authority, Revenue Bonds, No Opt. Call A3 439,307 North Shore Jewish Obligated Group, Series 2007A, 5.250%, 7/01/34 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 27,565 Total Health Care 28,107,862 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 4.3% (2.8% 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 AA+ 435,976 400 5.000%, 7/01/16 - FGIC Insured 7/15 at 100.00 AA+ 431,724 2,165 5.000%, 7/01/25 - FGIC Insured 7/15 at 100.00 AA+ 2,195,050 200 New York City, New York, Multifamily Housing Revenue Bonds, 1/17 at 100.00 AAA 172,134 Seaview Towers, Series 2006A, 4.750%, 7/15/39 - AMBAC Insured (Alternative Minimum Tax) 43 NNF Nuveen Insured New York Premium Income Municipal Fund, Inc. (continued) Portfolio of INVESTMENTS March 31, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) $ 1,900 New York State Housing Finance Agency, Mortgage Revenue 5/08 at 100.00 AAA $ 1,903,344 Refunding Bonds, Housing Project, Series 1996A, 6.125%, 11/01/20 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,065 Total Housing/Multifamily 5,138,228 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.0% (0.6% OF TOTAL INVESTMENTS) 1,290 Syracuse Industrial Development Authority, New York, 1/17 at 100.00 A- 1,169,759 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 1,037,660 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 858,135 Bonds, NYSARC Inc., Series 2001A, 5.000%, 7/01/26 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 1,850 Total Long-Term Care 1,895,795 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 11.0% (7.0% OF TOTAL INVESTMENTS) 500 Erie County, New York, General Obligation Bonds, Series 2003A, 3/13 at 100.00 A3 531,715 5.250%, 3/15/16 - FGIC Insured 315 Erie County, New York, General Obligation Bonds, Series 2004B, No Opt. Call Aaa 342,569 5.250%, 4/01/13 - MBIA Insured 5,005 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A3 4,840,886 Bonds, Series 2006A, 5.000%, 2/15/47 - FGIC Insured (UB) 210 Nassau County, New York, General Obligation Improvement Bonds, No Opt. Call AAA 237,689 Series 1993H, 5.500%, 6/15/16 - MBIA Insured 95 New York City, New York, General Obligation Bonds, Fiscal 8/08 at 101.00 AA 96,159 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 1,067,900 1,100 5.000%, 11/01/20 - FSA Insured 11/14 at 100.00 AAA 1,161,908 1,000 New York City, New York, General Obligation Bonds, Fiscal 3/15 at 100.00 AA 1,054,310 Series 2005J, 5.000%, 3/01/19 - FGIC Insured 915 Niagara Falls, New York, General Obligation Bonds, Series 1994, No Opt. Call AAA 1,086,691 7.500%, 3/01/13 - MBIA Insured 1,000 Red Hook Central School District, Dutchess County, New York, 6/12 at 100.00 Aaa 1,047,230 General Obligation Refunding Bonds, Series 2002, 5.125%, 6/15/18 - FSA Insured 1,525 Yonkers, New York, General Obligation Bonds, Series 2005A, 8/15 at 100.00 AAA 1,641,602 5.000%, 8/01/16 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 12,665 Total Tax Obligation/General 13,108,659 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 52.2% (33.6% OF TOTAL INVESTMENTS) 690 Dormitory Authority of the State of New York, Department of 7/15 at 100.00 Aaa 707,071 Health Revenue Bonds, Series 2005A, 5.250%, 7/01/24 - CIFG Insured 50 Dormitory Authority of the State of New York, Improvement 8/10 at 100.00 AAA 50,174 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 512,575 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 AA- 1,258,001 Department of Health, Series 2004-2, 5.000%, 7/01/20 - FGIC Insured Dormitory Authority of the State of New York, Revenue Bonds, Mental Health Services Facilities Improvements, Series 2005D-1: 225 5.000%, 2/15/15 - FGIC Insured No Opt. Call AA- 242,073 600 5.000%, 8/15/23 - FGIC Insured 2/15 at 100.00 AA- 608,322 44 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, School Districts Financing Program, Series 2002D: $ 4,300 5.250%, 10/01/23 - MBIA Insured 10/12 at 100.00 AAA $ 4,429,687 875 5.000%, 10/01/30 - MBIA Insured 10/12 at 100.00 AAA 877,791 375 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 395,843 Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/21 - FSA Insured 830 Erie County Industrial Development Agency, New York, School 5/18 at 100.00 AAA 898,624 Facility Revenue Bonds, Buffalo City School District Project, Series 2008A, 5.750%, 5/01/27 - FSA Insured 750 Erie County Industrial Development Agency, New York, School 5/12 at 100.00 AAA 809,078 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 536,270 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 2,802,025 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 2,584,600 Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA Insured 1,350 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA 1,431,851 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 1,731,825 1,500 5.500%, 1/01/20 - MBIA Insured 7/12 at 100.00 AAA 1,592,160 2,000 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 2,012,020 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 1,048,060 580 4.750%, 11/15/21 - AMBAC Insured 11/13 at 100.00 AAA 592,331 580 4.750%, 11/15/22 - AMBAC Insured 11/13 at 100.00 AAA 589,408 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 940,038 680 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 692,124 4,590 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 4,625,526 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 746,002 2,090 5.250%, 8/01/21 - AMBAC Insured 8/12 at 100.00 AAA 2,177,508 1,000 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA 1,042,330 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 Aa1 1,051,040 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 1,536,480 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 1,035,590 4,105 5.000%, 11/15/44 - AMBAC Insured 11/15 at 100.00 AAA 4,041,002 1,500 New York State Local Government Assistance Corporation, No Opt. Call AAA 1,648,620 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 1,029,110 Fund Bonds, Second Genera1 Series 2004, 5.000%, 4/01/23 - MBIA Insured 45 NNF Nuveen Insured New York Premium Income Municipal Fund, Inc. (continued) Portfolio of INVESTMENTS March 31, 2008 (Unaudited) 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 General, Series 2005B: $ 2,960 5.500%, 4/01/20 - AMBAC Insured No Opt. Call AAA $ 3,322,186 500 5.000%, 4/01/21 - AMBAC Insured 10/15 at 100.00 AAA 521,585 750 New York State Thruway Authority, State Personal Income Tax 9/14 at 100.00 AAA 768,255 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 2,161,026 3,800 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 3,880,635 1,900 New York State Urban Development Corporation, Revenue No Opt. Call AAA 2,058,650 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 503,200 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 347,256 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 1,106,430 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 1,553,505 Agreement Revenue Bonds, John P. Colahan Court Complex, Series 1999, 5.000%, 4/15/16 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 60,020 Total Tax Obligation/Limited 62,497,887 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 14.5% (9.4% OF TOTAL INVESTMENTS) 3,000 Metropolitan Transportation Authority, New York, Transportation 11/16 at 100.00 AAA 2,777,130 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 530,585 2,010 5.000%, 11/15/25 - FGIC Insured 11/12 at 100.00 A 2,009,879 2,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 2,017,940 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 969,317 2,240 5.000%, 1/01/30 - AMBAC Insured 1/15 at 100.00 AAA 2,248,736 600 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 603,942 Series 2005G, 5.000%, 1/01/30 - FSA Insured 330 New York State Thruway Authority, General Revenue Bonds, 1/18 at 100.00 AA- 338,168 Series 2007H, 5.000%, 1/01/25 - FGIC Insured 500 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 502,255 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 AA- 1,009,450 565 5.000%, 12/01/31 - XLCA Insured 6/15 at 101.00 AA- 566,198 545 Port Authority of New York and New Jersey, One Hundred and 8/17 at 100.00 AAA 562,963 Forty Eighth Consolidated Revenue Bonds, RITES Trust 1516, 10.129%, 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 870,480 2,300 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AAA 2,395,887 ------------------------------------------------------------------------------------------------------------------------------------ 17,295 Total Transportation 17,402,930 ------------------------------------------------------------------------------------------------------------------------------------ 46 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 8.7% (5.6% OF TOTAL INVESTMENTS) (4) Dormitory Authority of the State of New York, Improvement Revenue Bonds, Mental Health Services Facilities, Series 2000D: $ 25 5.250%, 8/15/30 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 Aaa $ 26,663 70 5.250%, 8/15/30 (Pre-refunded 8/15/10) - FSA Insured 8/10 at 100.00 Aaa 74,707 3,215 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 AAA 3,061,066 University of Rochester, Series 2000A, 6.050%, 7/01/24 (Pre-refunded 7/01/10) - MBIA Insured 500 Longwood Central School District, Suffolk County, New York, 6/11 at 101.00 A2 (4) 553,520 Series 2000, 5.750%, 6/15/20 (Pre-refunded 6/15/11) - FGIC Insured 500 Metropolitan Transportation Authority, New York, Dedicated Tax 10/14 at 100.00 AAA 552,750 Fund Bonds, Series 1999A, 5.000%, 4/01/29 (Pre-refunded 10/01/14) - FSA Insured 255 New York City Transitional Finance Authority, New York, Future 8/12 at 100.00 Aaa 279,914 Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/21 (Pre-refunded 8/01/12) - AMBAC Insured 1,000 New York State Thruway Authority, Highway and Bridge Trust 4/12 at 100.00 AAA 1,081,720 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 Personal 3/13 at 100.00 AAA 2,235,740 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, Series 1994, No Opt. Call AAA 102,513 7.500%, 3/01/13 - MBIA Insured (ETM) 2,115 Niagara Falls, Niagara County, New York, General Obligation No Opt. Call AAA 2,194,989 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 288,455 Waterworks Revenue Bonds, Series 1993, 5.100%, 6/01/12 - MBIA Insured (ETM) ------------------------------------------------------------------------------------------------------------------------------------ 10,030 Total U.S. Guaranteed 10,452,037 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 5.2% (3.4% OF TOTAL INVESTMENTS) 500 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA 502,160 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 A- 2,303,301 2,930 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 A- 2,945,412 250 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 A+ 245,570 Revenue Bonds, Series 2006B, 5.000%, 12/01/35 - CIFG Insured 250 Power Authority of the State of New York, General Revenue 11/15 at 100.00 Aa2 264,088 Bonds, Series 2006A, 5.000%, 11/15/19 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,200 Total Utilities 6,260,531 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 9.7% (6.3% OF TOTAL INVESTMENTS) 1,660 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 1,794,327 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 3,309,991 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 2,010,967 Water and Sewerage System Revenue Bonds, Fiscal Series 2005C, 5.000%, 6/15/27 - MBIA Insured 1,200 New York City Municipal Water Finance Authority, New York, 6/16 at 100.00 AAA 1,201,512 Water and Sewerage System Revenue Bonds, Series 2006B, 5.000%, 6/15/36 - MBIA Insured 47 NNF Nuveen Insured New York Premium Income Municipal Fund, Inc. (continued) Portfolio of INVESTMENTS March 31, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 735 Suffolk County Water Authority, New York, Subordinate Lien No Opt. Call AAA $ 799,967 Waterworks Revenue Bonds, Series 1993, 5.100%, 6/01/12 - MBIA Insured 2,500 Suffolk County Water Authority, New York, Waterworks Revenue 6/15 at 100.00 AAA 2,525,325 Bonds, Series 2005C, 5.000%, 6/01/28 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 11,380 Total Water and Sewer 11,642,089 ------------------------------------------------------------------------------------------------------------------------------------ $ 180,930 Total Investments (cost $184,312,085) - 155.3% 185,980,841 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (4.2)% (5,080,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.2% 3,883,708 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (54.3)% (5) (65,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 119,784,549 ====================================================================================================================
As of March 31, 2008, 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: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments reflects the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of March 31, 2008. During March 2008, at least one rating agency reduced the rating for AMBAC-insured bonds to AA and at least one rating agency further reduced the ratings for CIFG-insured, FGIC-insured and XLCA-insured bonds. Subsequent to March 31, 2008, at least one rating agency reduced the rating for MBIA-insured bonds to AA. As of March 31, 2008, one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of total investments is (34.9)%. (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. 48 NKO Nuveen Insured New York Dividend Advantage Municipal Fund Portfolio of INVESTMENTS March 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.5% (2.3% OF TOTAL INVESTMENTS) $ 2,390 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB $ 2,255,778 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 993,330 Pass-Through Bonds, Series 2003, 5.750%, 6/01/33 835 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 796,790 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ 4,225 Total Consumer Staples 4,045,898 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 21.1% (13.8% OF TOTAL INVESTMENTS) 4,000 Dormitory Authority of the State of New York, Insured Revenue No Opt. Call AAA 4,072,600 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 1,296,410 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 AA- 1,065,180 Bonds, State University Dormitory Facilities, Series 2003B, 5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured 140 Dormitory Authority of the State of New York, Lease Revenue 7/15 at 100.00 AAA 140,920 Bonds, State University Dormitory Facilities, Series 2004A, 5.000%, 7/01/29 - MBIA Insured 920 Dormitory Authority of the State of New York, Lease Revenue 7/16 at 100.00 AAA 922,392 Bonds, State University Dormitory Facilities, Series 2006A, 5.000%, 7/01/31 - MBIA Insured 240 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 A3 234,216 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 AA- 558,290 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 3,805,393 New York University, Series 1998A, 6.000%, 7/01/18 - MBIA Insured 1,440 Madison County Industrial Development Agency, New York, 7/15 at 100.00 AAA 1,434,168 Civic Facility Revenue Bonds, Colgate University, Series 2005A, 5.000%, 7/01/40 - AMBAC Insured 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 986,620 1,060 5.000%, 1/01/46 - AMBAC Insured 1/17 at 100.00 AAA 1,031,846 New York City Industrial Development Authority, New York, PILOT Revenue Bonds, Yankee Stadium Project, Series 2006: 395 5.000%, 3/01/31 - FGIC Insured 9/16 at 100.00 A3 387,064 2,210 5.000%, 3/01/36 - MBIA Insured 9/16 at 100.00 AAA 2,193,469 1,920 4.500%, 3/01/39 - FGIC Insured 9/16 at 100.00 A3 1,708,128 4,000 New York City Trust for Cultural Resources, New York, 7/12 at 100.00 AAA 4,004,960 Revenue Bonds, Museum of Modern Art, Series 2001D, 5.125%, 7/01/31 - AMBAC Insured 330 New York State Dormitory Authority, Revenue Bonds, 7/17 at 100.00 Aaa 331,432 New York University, Series 2007, 5.000%, 7/01/32 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 23,685 Total Education and Civic Organizations 24,173,088 ------------------------------------------------------------------------------------------------------------------------------------ 49 NKO Nuveen Insured New York Dividend Advantage Municipal Fund (continued) Portfolio of INVESTMENTS March 31, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 24.5% (16.0% OF TOTAL INVESTMENTS) $ 2,000 Dormitory Authority of the State of New York, FHA-Insured 8/08 at 101.00 AAA $ 1,960,220 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 1,429,596 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 794,922 Mortgage Revenue Bonds, Hudson Valley Hospital Center, Series 2007, 5.000%, 8/15/27 - FSA Insured 9,800 Dormitory Authority of the State of New York, FHA-Insured 8/09 at 101.00 AAA 9,912,798 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 A3 1,527,705 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 2,110,045 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 174,979 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 595,676 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 1,769,281 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 999,835 New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 - FSA Insured 600 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 605,382 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 692,629 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 747,236 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 1,558,620 1,000 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 1,039,080 395 New York State Dormitory Authority, Revenue Bonds, No Opt. Call A3 398,911 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 746,562 1,045 5.875%, 11/01/32 11/12 at 100.00 Baa1 1,050,350 ------------------------------------------------------------------------------------------------------------------------------------ 27,580 Total Health Care 28,113,827 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 3.7% (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 2,730,396 1,375 5.500%, 11/01/34 (Alternative Minimum Tax) 5/12 at 100.00 AA 1,341,189 180 New York City, New York, Multifamily Housing Revenue Bonds, 1/17 at 100.00 AAA 154,921 Seaview Towers, Series 2006A, 4.750%, 7/15/39 - AMBAC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 4,280 Total Housing/Multifamily 4,226,506 ------------------------------------------------------------------------------------------------------------------------------------ 50 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.0% (0.6% OF TOTAL INVESTMENTS) $ 1,225 Syracuse Industrial Development Authority, New York, 1/17 at 100.00 A- $ 1,110,818 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 528,203 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 1,039,410 1,500 5.400%, 2/01/34 8/12 at 101.00 AAA 1,527,720 ------------------------------------------------------------------------------------------------------------------------------------ 3,025 Total Long-Term Care 3,095,333 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 14.6% (9.6% 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 1,562,652 2,375 5.375%, 11/15/20 - MBIA Insured 11/12 at 100.00 AAA 2,465,250 1,240 Canandaigua City School District, Ontario County, New York, 4/12 at 101.00 Aaa 1,349,628 General Obligation Refunding Bonds, Series 2002A, 5.375%, 4/01/17 - FSA Insured 4,760 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A3 4,603,920 Bonds, Series 2006A, 5.000%, 2/15/47 - FGIC Insured (UB) 3,000 New York City, New York, General Obligation Bonds, Fiscal 3/11 at 101.00 AA 3,196,950 Series 2001H, 5.250%, 3/15/16 - FGIC Insured 80 New York City, New York, General Obligation Bonds, Fiscal 3/12 at 100.00 AAA 81,678 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 1,815,430 1,100 5.000%, 11/01/20 - FSA Insured 11/14 at 100.00 AAA 1,161,908 525 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 572,507 Series 2006C, 5.000%, 8/01/16 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 16,270 Total Tax Obligation/General 16,809,923 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 40.9% (26.7% OF TOTAL INVESTMENTS) 250 Dormitory Authority of the State of New York, 853 Schools 7/08 at 101.00 AAA 253,418 Program Insured Revenue Bonds, Vanderheyden Hall Inc., Issue 2, Series 1998F, 5.250%, 7/01/18 - AMBAC Insured 3,000 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 AAA 3,090,480 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 168,893 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 Project, Series 2008A: 590 5.750%, 5/01/27 - FSA Insured 5/18 at 100.00 AAA 638,781 190 5.750%, 5/01/28 - FSA Insured 5/18 at 100.00 AAA 204,759 400 Erie County Industrial Development Agency, New York, School 5/12 at 100.00 AAA 431,508 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 2,662,727 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 Tax 11/12 at 100.00 AAA 2,367,494 Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA Insured 4,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AA- 4,027,080 Contract Refunding Bonds, Series 2002A, 5.000%, 7/01/25 - FGIC Insured 51 NKO Nuveen Insured New York Dividend Advantage Municipal Fund (continued) Portfolio of INVESTMENTS March 31, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,000 Nassau County Interim Finance Authority, New York, Sales 11/13 at 100.00 AAA $ 1,048,060 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 3,474,052 1,040 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 1,058,543 300 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 302,322 2,500 New York City Transitional Finance Authority, New York, 1/17 at 100.00 AA- 2,513,950 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, Future 11/11 at 101.00 AAA 5,362,000 Tax Secured Bonds, Fiscal Series 2002B, 5.250%, 5/01/16 - MBIA Insured 890 New York City Transitional Finance Authority, New York, Future 8/12 at 100.00 AAA 927,264 Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/21 - AMBAC Insured 500 New York City Transitional Finance Authority, New York, Future 2/14 at 100.00 Aa1 525,520 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 500,285 430 5.000%, 11/15/44 - AMBAC Insured 11/15 at 100.00 AAA 423,296 New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Second General, Series 2005B: 2,625 5.500%, 4/01/20 - AMBAC Insured No Opt. Call AAA 2,946,195 500 5.000%, 4/01/21 - AMBAC Insured 10/15 at 100.00 AAA 521,585 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 1,955,214 1,000 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 1,021,220 750 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 776,633 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 9,686,782 Refunding Bonds, State Facilities, Series 1995, 5.700%, 4/01/20 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 44,300 Total Tax Obligation/Limited 46,888,061 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 13.1% (8.6% 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 A 2,029,040 4,000 5.000%, 11/15/25 - FGIC Insured 11/12 at 100.00 A 3,999,760 865 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 906,442 Series 2005F, 5.000%, 1/01/20 - AMBAC Insured 350 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 352,300 Series 2005G, 5.000%, 1/01/30 - FSA Insured 315 New York State Thruway Authority, General Revenue Bonds, 1/18 at 100.00 AA- 322,796 Series 2007H, 5.000%, 1/01/25 - FGIC Insured 85 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 85,383 Bonds, Buffalo Niagara International Airport, Series 1999A, 5.625%, 4/01/29 - MBIA Insured (Alternative Minimum Tax) 52 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION (continued) 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 $ 536,600 1,000 5.000%, 12/01/28 - XLCA Insured 6/15 at 101.00 AA- 1,009,450 345 5.000%, 12/01/31 - XLCA Insured 6/15 at 101.00 AA- 345,731 4,000 Port Authority of New York and New Jersey, Consolidated 8/08 at 101.00 AA- 4,065,680 Revenue Bonds, One Hundred Twenty-Fourth Series 2001, 5.000%, 8/01/11 - FGIC Insured (Alternative Minimum Tax) 515 Port Authority of New York and New Jersey, One Hundred and 8/17 at 100.00 AAA 531,974 Forty Eighth Consolidated Revenue Bonds, RITES Trust 1516, 10.129%, 8/15/32 - FSA Insured (IF) 780 Triborough Bridge and Tunnel Authority, New York, Subordinate No Opt. Call AAA 870,480 Lien General Purpose Revenue Refunding Bonds, Series 2002E, 5.500%, 11/15/20 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 14,755 Total Transportation 15,055,636 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 12.4% (8.1% OF TOTAL INVESTMENTS) (4) 220 Dormitory Authority of the State of New York, Improvement 8/09 at 101.00 AAA 232,252 Revenue Bonds, Mental Health Services Facilities, Series 1999D, 5.250%, 2/15/29 (Pre-refunded 8/15/09) - FSA Insured 160 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 187,208 Lease Revenue Bonds, Suffolk County Issue, Series 1986, 7.375%, 7/01/16 (ETM) 110 New York City Transitional Finance Authority, New York, Future 8/12 at 100.00 Aaa 120,747 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 3,441,257 Series 2002C, 5.125%, 3/15/25 (Pre-refunded 3/15/12) - FSA Insured 665 New York State Housing Finance Agency, Construction Fund No Opt. Call AAA 722,436 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 5,375,250 Series 2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) - FSA Insured 2,575 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,672,515 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 1,375 TSASC Inc., New York, Tobacco Asset-Backed Bonds, 7/12 at 100.00 AAA 1,477,328 Series 2002-1, 5.500%, 7/15/24 (Pre-refunded 7/15/12) ------------------------------------------------------------------------------------------------------------------------------------ 13,275 Total U.S. Guaranteed 14,228,993 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 12.6% (8.2% OF TOTAL INVESTMENTS) 5,000 Long Island Power Authority, New York, Electric System 9/11 at 100.00 AAA 5,021,600 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 A- 1,724,939 1,300 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 A- 1,306,838 250 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 A+ 245,570 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 5,032,200 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 1,094,458 Westchester County, New York, Resource Recovery Revenue Bonds, RESCO Company, Series 1996, 5.500%, 7/01/09 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 14,340 Total Utilities 14,425,605 ------------------------------------------------------------------------------------------------------------------------------------ 53 NKO Nuveen Insured New York Dividend Advantage Municipal Fund (continued) Portfolio of INVESTMENTS March 31, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 3.0% (2.0% OF TOTAL INVESTMENTS) $ 1,140 New York City Municipal Water Finance Authority, New York, 6/16 at 100.00 AAA $ 1,141,436 Water and Sewerage System Revenue Bonds, Series 2006B, 5.000%, 6/15/36 - MBIA Insured 2,295 Suffolk County Water Authority, New York, Waterworks Revenue 6/15 at 100.00 AAA 2,318,248 Bonds, Series 2005C, 5.000%, 6/01/28 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 3,435 Total Water and Sewer 3,459,684 ------------------------------------------------------------------------------------------------------------------------------------ $ 170,395 Total Investments (cost $173,430,079) - 153.1% 175,633,372 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (4.2)% (4,830,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 4.3% 4,945,845 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (53.2)% (5) (61,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 114,749,217 ====================================================================================================================
As of March 31, 2008, at least 80% of the Fund's net assets (including net assets attributable to Preferred shares) are invested in municipal securities that are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance which ensures the timely payment of principal and interest. Up to 20% of the Fund's net assets (including net assets attributable to Preferred shares) may be invested in municipal securities that are (i) either backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities (also ensuring the timely payment of principal and interest), or (ii) rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, Standard & Poor's or Fitch) or unrated but judged to be of comparable quality by the Adviser. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments reflects the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of March 31, 2008. During March 2008, at least one rating agency reduced the rating for AMBAC-insured bonds to AA and at least one rating agency further reduced the ratings for CIFG-insured, FGIC-insured and XLCA-insured bonds. Subsequent to March 31, 2008, at least one rating agency reduced the rating for MBIA-insured bonds to AA. As of March 31, 2008, one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers. (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) Preferred Shares, at Liquidation Value as a percentage of total investments is (34.7)%. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 54 NRK Nuveen Insured New York Tax-Free Advantage Municipal Fund Portfolio of INVESTMENTS March 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.6% (2.3% OF TOTAL INVESTMENTS) $ 1,500 New York Counties Tobacco Trust III, Tobacco Settlement 6/13 at 100.00 BBB $ 1,489,995 Pass-Through Bonds, Series 2003, 5.750%, 6/01/33 335 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 319,670 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ 1,835 Total Consumer Staples 1,809,665 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 24.0% (15.6% OF TOTAL INVESTMENTS) 2,000 Dormitory Authority of the State of New York, Insured 9/12 at 100.00 AA 1,868,980 Revenue 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 2,036,300 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 AA- 1,065,180 Bonds, State University Dormitory Facilities, Series 2003B, 5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured 410 Dormitory Authority of the State of New York, Lease Revenue 7/16 at 100.00 AAA 411,066 Bonds, State University Dormitory Facilities, Series 2006A, 5.000%, 7/01/31 - MBIA Insured 1,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AA 932,130 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 2,591,775 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 108,817 80 5.250%, 7/01/21 - AMBAC Insured No Opt. Call Aaa 86,474 630 Madison County Industrial Development Agency, New York, 7/15 at 100.00 AAA 627,449 Civic Facility Revenue Bonds, Colgate University, Series 2005A, 5.000%, 7/01/40 - AMBAC Insured New York City Industrial Development Authority, New York, PILOT Revenue Bonds, Yankee Stadium Project, Series 2006: 170 5.000%, 3/01/31 - FGIC Insured 9/16 at 100.00 A3 166,585 1,425 5.000%, 3/01/36 - MBIA Insured 9/16 at 100.00 AAA 1,414,341 840 4.500%, 3/01/39 - FGIC Insured 9/16 at 100.00 A3 747,306 ------------------------------------------------------------------------------------------------------------------------------------ 12,155 Total Education and Civic Organizations 12,056,403 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 23.7% (15.4% OF TOTAL INVESTMENTS) 2,000 Dormitory Authority of the State of New York, FHA-Insured 2/13 at 100.00 AAA 2,002,420 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 3,003,270 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 349,361 Mortgage Revenue Bonds, Hudson Valley Hospital Center, Series 2007, 5.000%, 8/15/27 - FSA Insured 1,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 A3 1,018,470 Revenue Bonds, Montefiore Medical Center, Series 2005, 5.000%, 2/01/22 - FGIC Insured 255 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 AAA 255,258 Health Quest System Inc., Series 2007B, 5.125%, 7/01/37 - AGC Insured 55 NRK Nuveen Insured New York Tax-Free Advantage Municipal Fund (continued) Portfolio of INVESTMENTS March 31, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 25 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA $ 25,642 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 889,963 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 756,728 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 301,788 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 541,475 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 2,743,171 Health System Revenue Bonds, Series 2003A, 5.250%, 2/15/21 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 11,630 Total Health Care 11,887,546 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.6% (0.4% OF TOTAL INVESTMENTS) 300 Dormitory Authority of the State of New York, GNMA 2/17 at 103.00 AA 301,830 Collateralized Revenue Bonds, Cabrini of Westchester Project, Series 2006, 5.200%, 2/15/41 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 9.3% (6.0% OF TOTAL INVESTMENTS) 2,055 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A3 1,987,617 Bonds, Series 2006A, 5.000%, 2/15/47 - FGIC Insured (UB) 2,155 New York City, New York, General Obligation Bonds, Fiscal 8/08 at 101.00 AAA 2,172,973 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 266,975 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 245,360 Series 2006C, 5.000%, 8/01/16 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,685 Total Tax Obligation/General 4,672,925 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 46.6% (30.2% OF TOTAL INVESTMENTS) 2,695 Buffalo Fiscal Stability Authority, New York, Sales Tax Revenue No Opt. Call AAA 2,959,622 State Aid Secured Bonds, Series 2004A, 5.250%, 8/15/12 - MBIA Insured 3,000 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 AAA 3,090,480 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 1,162,599 Facility Revenue Bonds, Buffalo City School District Project, Series 2007A, 5.750%, 5/01/28 - FSA Insured (UB) 340 Erie County Industrial Development Agency, New York, School 5/18 at 100.00 AAA 368,111 Facility Revenue Bonds, Buffalo City School District Project, Series 2008A, 5.750%, 5/01/27 - FSA Insured 1,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AA- 1,006,770 Contract Refunding Bonds, Series 2002A, 5.000%, 7/01/25 - FGIC Insured 560 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB 498,994 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 623,286 555 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 564,896 740 New York City Transitional Finance Authority, New York, 1/17 at 100.00 AA- 744,129 Building Aid Revenue Bonds, Fiscal Series 2007S-2, 5.000%, 1/15/28 - FGIC Insured 3,000 New York City Transitional Finance Authority, New York, 8/12 at 100.00 AAA 3,143,430 Future Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/18 - AMBAC Insured 56 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 2,000 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA $ 2,048,640 Future Tax Secured Refunding Bonds, Fiscal Series 2003D, 5.000%, 2/01/22 - MBIA Insured 845 New York Convention Center Development Corporation, 11/15 at 100.00 AAA 831,826 Hotel Unit Fee Revenue Bonds, Series 2005, 5.000%, 11/15/44 - AMBAC Insured 1,290 New York State Environmental Facilities Corporation, State 1/13 at 100.00 AAA 1,314,458 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 1,066,242 Fund Bonds, Second General, Series 2005B, 5.500%, 4/01/20 - AMBAC Insured 1,200 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AAA 1,234,872 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- 776,633 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- 1,967,378 Contract Revenue Bonds, Correctional and Youth Facilities, Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11) ------------------------------------------------------------------------------------------------------------------------------------ 22,480 Total Tax Obligation/Limited 23,402,366 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 12.9% (8.4% OF TOTAL INVESTMENTS) 1,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 A 999,940 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 1,964,831 Series 2005F, 5.000%, 1/01/20 - AMBAC Insured 140 New York State Thruway Authority, General Revenue Bonds, 1/18 at 100.00 AA- 143,465 Series 2007H, 5.000%, 1/01/25 - FGIC Insured 3,030 Port Authority of New York and New Jersey, Consolidated 11/12 at 101.00 AAA 3,154,927 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 232,416 Forty Eighth Consolidated Revenue Bonds, RITES Trust 1516, 10.129%, 8/15/32 - FSA Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ 6,270 Total Transportation 6,495,579 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 28.1% (18.2% OF TOTAL INVESTMENTS) (4) 1,185 Dormitory Authority of the State of New York, FHA-Insured 2/13 at 102.00 Aaa 1,325,375 Nursing Home Mortgage Revenue Bonds, Shorefront Jewish Geriatric Center Inc., Series 2002, 5.200%, 2/01/32 (Pre-refunded 2/01/13) 145 Dormitory Authority of the State of New York, Improvement 8/09 at 101.00 AAA 153,075 Revenue Bonds, Mental Health Services Facilities, Series 1999D, 5.250%, 2/15/29 (Pre-refunded 8/15/09) - FSA Insured 395 Dormitory Authority of the State of New York, Lease Revenue 7/09 at 101.00 AAA 415,441 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 556,710 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 112,527 Series 1990B, 6.750%, 12/01/14 - AMBAC Insured (ETM) 245 New York City, New York, General Obligation Bonds, Fiscal 8/08 at 101.00 AAA 250,204 Series 1998H, 5.125%, 8/01/25 (Pre-refunded 8/01/08) - MBIA Insured 3,500 New York State Thruway Authority, Highway and Bridge Trust 4/12 at 100.00 AAA 3,786,018 Fund Bonds, Series 2002B, 5.000%, 4/01/20 (Pre-refunded 4/01/12) - AMBAC Insured 500 New York State Urban Development Corporation, State Personal 3/13 at 100.00 AAA 558,935 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 Power Authority of the State of New York, General Revenue 11/12 at 100.00 Aa2 (4) 2,185,660 Bonds, Series 2002A, 5.000%, 11/15/20 (Pre-refunded 11/15/12) 57 NRK Nuveen Insured New York Tax-Free Advantage Municipal Fund (continued) Portfolio of INVESTMENTS March 31, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 2,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA $ 2,150,100 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 2,136,200 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 479,511 Series 1999-1, 6.250%, 7/15/34 (Mandatory put 7/15/24) (Pre-refunded 7/15/09) ------------------------------------------------------------------------------------------------------------------------------------ 12,995 Total U.S. Guaranteed 14,109,756 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 4.5% (2.9% 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 A- 1,146,577 870 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 A- 874,576 125 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 A+ 122,785 Revenue Bonds, Series 2006B, 5.000%, 12/01/35 - CIFG Insured 110 Power Authority of the State of New York, General Revenue 11/15 at 100.00 Aa2 116,199 Bonds, Series 2006A, 5.000%, 11/15/19 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 2,235 Total Utilities 2,260,137 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 1.0% (0.6% OF TOTAL INVESTMENTS) 495 New York City Municipal Water Finance Authority, New York, 6/16 at 100.00 AAA 495,624 Water and Sewerage System Revenue Bonds, Series 2006B, 5.000%, 6/15/36 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 75,080 Total Investments (cost $76,587,523) - 154.3% 77,491,831 ==============---------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (4.2)% (2,095,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.7% 1,824,935 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (53.8)% (5) (27,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 50,221,766 ====================================================================================================================
As of March 31, 2008, at least 80% of the Fund's net assets (including net assets attributable to Preferred shares) are invested in municipal securities that are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance which ensures the timely payment of principal and interest. Up to 20% of the Fund's net assets (including net assets attributable to Preferred shares) may be invested in municipal securities that are (i) either backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities (also ensuring the timely payment of principal and interest), or (ii) rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, Standard & Poor's or Fitch) or unrated but judged to be of comparable quality by the Adviser. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments reflects the ratings on certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of March 31, 2008. During March 2008, at least one rating agency reduced the rating for AMBAC-insured bonds to AA and at least one rating agency further reduced the ratings for CIFG-insured, FGIC-insured and XLCA-insured bonds. Subsequent to March 31, 2008, at least one rating agency reduced the rating for MBIA-insured bonds to AA. As of March 31, 2008, one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of total investments is (34.8)%. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 58 Statement of ASSETS & LIABILITIES March 31, 2008 (Unaudited) 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 $396,722,595, $520,688,754, $535,224,836, $184,312,085, $173,430,079 and $76,587,523, respectively) $401,330,400 $530,543,798 $543,594,480 $185,980,841 $175,633,372 $77,491,831 Cash -- -- 2,930,496 1,789,102 2,828,726 1,069,848 Receivables: Interest 5,672,558 7,371,550 7,302,402 2,616,427 2,544,195 989,780 Investments sold 1,767,500 7,827,500 -- -- 95,000 -- Other assets 45,488 57,356 52,255 10,749 2,148 701 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 408,815,946 545,800,204 553,879,633 190,397,119 181,103,441 79,552,160 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 857,067 898,718 -- -- -- -- 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 -- -- 313,122 -- -- -- Accrued expenses: Management fees 208,501 276,711 281,050 98,708 56,905 25,872 Other 103,156 130,824 157,494 35,814 28,640 17,839 Common share dividends payable 759,093 1,031,322 1,036,076 359,792 417,096 182,129 Preferred share dividends payable 52,812 81,426 83,124 38,256 21,583 9,554 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 12,890,629 17,054,001 16,715,866 5,612,570 5,354,224 2,330,394 ------------------------------------------------------------------------------------------------------------------------------------ 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 $251,925,317 $335,746,203 $340,163,767 $119,784,549 $114,749,217 $50,221,766 ==================================================================================================================================== Common shares outstanding 17,601,933 23,310,802 23,904,439 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) $ 14.31 $ 14.40 $ 14.23 $ 14.38 $ 14.41 $ 14.29 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 176,019 $ 233,108 $ 239,044 $ 83,292 $ 79,641 $ 35,134 Paid-in surplus 247,294,408 326,211,519 332,689,767 118,406,390 113,014,433 49,509,303 Undistributed (Over-distribution of) net investment income 143,769 (490,135) (596,048) (169,931) (169,726) (25,088) Accumulated net realized gain (loss) from investments and derivative transactions (296,684) (63,333) (225,518) (203,958) (378,424) (201,891) Net unrealized appreciation (depreciation) of investments and derivative transactions 4,607,805 9,855,044 8,056,522 1,668,756 2,203,293 904,308 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $251,925,317 $335,746,203 $340,163,767 $119,784,549 $114,749,217 $50,221,766 ==================================================================================================================================== 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. 59 Statement of OPERATIONS Six Months Ended March 31, 2008 (Unaudited)
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 $ 9,687,207 $13,001,324 $13,023,453 $ 4,469,398 $ 4,317,359 $1,813,778 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 1,252,774 1,668,323 1,693,075 594,179 566,356 249,145 Preferred shares - auction fees 180,001 241,251 246,250 81,250 76,251 33,751 Preferred shares - dividend disbursing agent fees 14,977 14,982 19,952 9,982 4,989 5,007 Shareholders' servicing agent fees and expenses 15,121 15,952 15,484 5,871 799 426 Interest expense on floating rate obligations 169,697 227,636 230,904 79,016 75,127 32,586 Custodian's fees and expenses 65,066 73,064 79,310 25,877 27,232 11,355 Directors'/Trustees' fees and expenses 3,787 4,796 4,721 1,866 1,676 770 Professional fees 13,133 18,475 15,590 9,588 6,731 4,149 Shareholders' reports - printing and mailing expenses 20,051 26,033 27,366 10,109 10,432 6,269 Stock exchange listing fees 4,721 4,721 4,721 4,721 451 199 Investor relations expense 15,657 20,887 21,181 7,357 6,997 3,151 Portfolio insurance expense -- 813 -- -- -- -- Other expenses 22,988 18,973 19,477 8,071 7,465 5,672 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 1,777,973 2,335,906 2,378,031 837,887 784,506 352,480 Custodian fee credit (20,313) (38,538) (46,251) (14,063) (15,970) (6,566) Expense reimbursement -- -- -- -- (224,395) (104,666) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 1,757,660 2,297,368 2,331,780 823,824 544,141 241,248 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 7,929,547 10,703,956 10,691,673 3,645,574 3,773,218 1,572,530 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments 2,905 337,903 (211,465) (50,569) (378,365) (224,682) Forward swaps -- -- -- -- -- 135,865 Change in net unrealized appreciation (depreciation) of: Investments (7,984,770) (13,573,262) (12,324,574) (4,108,017) (3,849,971) (1,135,262) Forward swaps -- -- (279,516) -- -- (21,078) ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) (7,981,865) (13,235,359) (12,815,555) (4,158,586) (4,228,336) (1,245,157) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (2,463,784) (3,312,739) (3,507,360) (1,134,917) (1,002,997) (427,382) From accumulated net realized gains -- (86,393) (107,456) -- (79,056) (2,095) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (2,463,784) (3,399,132) (3,614,816) (1,134,917) (1,082,053) (429,477) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $(2,516,102) $ (5,930,535) $ (5,738,698) $(1,647,929) $(1,537,171) $ (102,104) ====================================================================================================================================
See accompanying notes to financial statements. 60 Statement of CHANGES in NET ASSETS (Unaudited)
NEW YORK NEW YORK NEW YORK INVESTMENT QUALITY (NQN) SELECT QUALITY (NVN) QUALITY INCOME (NUN) ----------------------------- ----------------------------- ------------------------------ SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 3/31/08 9/30/07 3/31/08 9/30/07 3/31/08 9/30/07 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 7,929,547 $ 15,801,778 $ 10,703,956 $ 21,481,130 $ 10,691,673 $ 21,409,900 Net realized gain (loss) from: Investments 2,905 (289,832) 337,903 (70,227) (211,465) 489,723 Forward swaps -- -- -- -- -- -- Change in net unrealized appreciation (depreciation) of: Investments (7,984,770) (5,068,948) (13,573,262) (8,612,656) (12,324,574) (8,923,129) Forward swaps -- -- -- -- (279,516) (33,606) Distributions to Preferred Shareholders: From net investment income (2,463,784) (4,510,422) (3,312,739) (6,304,083) (3,507,360) (6,627,607) From accumulated net realized gains -- (286,874) (86,393) (213,591) (107,456) (264,550) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations (2,516,102) 5,645,702 (5,930,535) 6,280,573 (5,738,698) 6,050,731 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (5,494,835) (11,824,817) (7,418,092) (16,441,617) (7,315,545) (15,623,437) From accumulated net realized gains -- (1,259,452) (221,453) (754,478) (248,604) (950,942) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (5,494,835) (13,084,269) (7,639,545) (17,196,095) (7,564,149) (16,574,379) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Repurchased (287,803) (1,323,079) (71,952) (1,641,093) (96,929) (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 (287,803) (1,323,079) (71,952) (1,641,093) (96,929) (2,318,030) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (8,298,740) (8,761,646) (13,642,032) (12,556,615) (13,399,776) (12,841,678) Net assets applicable to Common shares at the beginning of period 260,224,057 268,985,703 349,388,235 361,944,850 353,563,543 366,405,221 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $251,925,317 $260,224,057 $335,746,203 $349,388,235 $340,163,767 $353,563,543 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 143,769 $ 172,841 $ (490,135) $ (463,260) $ (596,048) $ (464,816) ====================================================================================================================================
See accompanying notes to financial statements. 61 Statement of CHANGES in NET ASSETS (continued) (Unaudited)
INSURED NEW YORK INSURED NEW YORK INSURED NEW YORK PREMIUM INCOME (NNF) DIVIDEND ADVANTAGE (NKO) TAX-FREE ADVANTAGE (NRK) ----------------------------- ----------------------------- ------------------------------ SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 3/31/08 9/30/07 3/31/08 9/30/07 3/31/08 9/30/07 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 3,645,574 $ 7,270,449 $ 3,773,218 $ 7,538,142 $ 1,572,530 $ 3,186,788 Net realized gain (loss) from: Investments (50,569) (100,953) (378,365) 290,925 (224,682) 14,123 Forward swaps -- -- -- -- 135,865 -- Change in net unrealized appreciation (depreciation) of: Investments (4,108,017) (2,681,117) (3,849,971) (2,914,384) (1,135,262) (1,018,278) Forward swaps -- -- -- -- (21,078) 21,078 Distributions to Preferred Shareholders: From net investment income (1,134,917) (2,107,436) (1,002,997) (2,085,917) (427,382) (815,059) From accumulated net realized gains -- (78,002) (79,056) (22,551) (2,095) (10,487) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations (1,647,929) 2,302,941 (1,537,171) 2,806,215 (102,104) 1,378,165 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (2,523,752) (5,597,338) (2,628,163) (5,763,556) (1,148,869) (2,297,570) From accumulated net realized gains -- (295,581) (216,624) (83,553) (5,973) (34,075) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (2,523,752) (5,892,919) (2,844,787) (5,847,109) (1,154,842) (2,331,645) ------------------------------------------------------------------------------------------------------------------------------------ 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 (4,171,681) (3,589,978) (4,381,958) (2,946,741) (1,256,946) (945,867) Net assets applicable to Common shares at the beginning of period 123,956,230 127,546,208 119,131,175 122,077,916 51,478,712 52,424,579 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $119,784,549 $123,956,230 $114,749,217 $119,131,175 $50,221,766 $51,478,712 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ (169,931) $ (156,836) $ (169,726) $ (311,784) $ (25,088) $ (21,367) ====================================================================================================================================
See accompanying notes to financial statements. 62 Notes to FINANCIAL STATEMENTS (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The funds covered in this report and their corresponding Common share stock exchange symbols are Nuveen 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) (collectively, the "Funds"). 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 market quotes provided by major broker/dealers in such investments. If it is determined that the market price for an investment or derivative instrument is unavailable or inappropriate, the Board of Directors/Trustees of the Funds, or its designee, may establish fair value in accordance with procedures established in good faith by the Board of Directors/Trustees. Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates market value. Investment Transactions Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. At March 31, 2008, there were no such outstanding purchase commitments in any of the Funds. Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any. 63 Notes to FINANCIAL STATEMENTS (continued) (Unaudited) Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from 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. Effective March 31, 2008, the Funds adopted Financial Accounting Standards Board (FASB) Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Funds' tax returns to determine whether it is "more-likely-than-not" (i.e., a greater than 50-percent likelihood) of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold may result in a tax benefit or expense in the current year. Implementation of FIN 48 required management of the Funds to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which includes federal and certain states. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). The Funds have no examinations in progress. For all open tax years and all major taxing jurisdictions through the end of the reporting period, management of the Funds has reviewed all tax positions taken or expected to be taken in the preparation of the Funds' tax returns and concluded the adoption of FIN 48 resulted in no impact to the Funds' net assets or results of operations as of and during the six months ended March 31, 2008. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Dividends and Distributions to Common Shareholders Dividends from tax-exempt net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to Common shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles. Preferred Shares The Funds have issued and outstanding Preferred shares, $25,000 stated value per share, as a means of effecting financial leverage. Each Fund's Preferred shares are issued in one or more Series. The dividend rate paid by the Funds on each Series is 64 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 During the six months ended March 31, 2008, New York Investment Quality (NQN), New York Select Quality (NVN), New York Quality Income (NUN) and Insured New York Premium Income (NNF) invested only in municipal securities which were either covered by insurance or were backed by an escrow or trust account containing sufficient U.S. Government or U.S. Government agency securities, both of which ensure the timely payment of principal and interest. During the six months ended March 31, 2008, Insured New York Dividend Advantage (NKO) and Insured New York Tax-Free Advantage (NRK) invested at least 80% of their net assets (including net assets attributable to Preferred shares) in municipal securities that were covered by insurance. Each Fund may have also invested up to 20% of its net assets (including net assets attributable to Preferred shares) in municipal securities which are either (i) backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, or (ii) rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, Standard & Poor's or 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"). Effective March 20, 2008, pursuant to action taken by the Funds' Board of Directors/Trustees, under normal circumstances, Insured New York Dividend Advantage (NKO) and Insured New York Tax-Free Advantage (NRK) must invest at least 80% of their net assets (including net assets attributable to Preferred shares) in municipal securities which are either covered by insurance or backed by an escrow or trust account containing sufficient U.S. Government or U.S. Government agency securities, both of which ensure the timely payment of principal and interest. For purposes of this 80% test, insurers must have a claims paying ability rated at least A at the time of purchase. In addition, each Fund must invest at least 80% of their net assets (including net assets attributable to Preferred shares) in municipal securities that are rated at least AA at the time of purchase. Each Fund may also invest up to 20% of their net assets (including net assets attributable to Preferred shares) in municipal securities rated below AA (based on the higher rating of the insurer, if any, or the underlying bond) or are unrated but judged to be of comparable quality by the Adviser. The foregoing policy changes will be implemented in Insured New York Premium Income (NNF) pending shareholder approval. Each insured municipal security is covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance. Such insurance does not guarantee the market value of the municipal securities or the value of the Funds' Common shares. Original Issue Insurance and Secondary Market Insurance remain in effect as long as the municipal securities covered thereby remain outstanding and the insurer remains in business, regardless of whether the Funds ultimately dispose of such municipal securities. Consequently, the market value of the municipal securities covered by Original Issue Insurance or Secondary Market Insurance may reflect value attributable to the insurance. Portfolio Insurance, in contrast, is effective only while the municipal securities are held by the Funds. Accordingly, neither the prices used in determining the market value of the underlying municipal securities nor the Common share net asset value of the Funds include value, if any, attributable to the Portfolio Insurance. Each policy of the Portfolio Insurance does, however, give the Funds the right to obtain permanent insurance with respect to the municipal security covered by the Portfolio Insurance policy at the time of its sale. 65 Notes to FINANCIAL STATEMENTS (continued) (Unaudited) 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"). A Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a "recourse trust" or "credit recovery swap") with a broker-dealer by which a Fund agrees to reimburse the broker-dealer, in certain circumstances, for the difference between the liquidation value of the fixed-rate bond held by the trust and the liquidation value of the floating rate certificates, as well as any shortfalls in interest cash flows. The inverse floater held by a Fund gives the Fund the right (a) to cause the holders of the floating rate certificates to tender their notes at par, and (b) to have the broker transfer the fixed-rate bond held by the trust to the Fund, thereby collapsing the trust. An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as an "Inverse floating rate investment". An investment in a self-deposited inverse floater, recourse trust or credit recovery swap is accounted for as a financing transaction in accordance with Statement of Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities". In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as an "Underlying bond of an inverse floating rate trust", with the Fund accounting for the short-term floating rate certificates issued by the trust as "Floating rate obligations" on the Statement of Assets and Liabilities. In addition, the Fund reflects in Investment Income the entire earnings of the underlying bond and accounts for the related interest paid to the holders of the short-term floating rate certificates as "Interest expense on floating rate obligations" in the Statement of Operations. During the six months ended March 31, 2008, each Fund invested in externally deposited inverse floaters and/or self-deposited inverse floaters. The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters during the six months ended March 31, 2008, 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 $10,910,000 $14,635,000 $14,845,000 $5,080,000 $4,830,000 $2,095,000 Average annual interest rate and fees 3.11% 3.11% 3.11% 3.11% 3.11% 3.11% ===================================================================================================================
66 Forward Swap Transactions Each Fund is authorized to invest in forward interest rate swap transactions. Each Fund's use of forward interest rate swap transactions is intended to help the Fund manage its overall interest rate sensitivity, either shorter or longer, generally to more closely align the Fund's interest rate sensitivity with that of the broader municipal market. Forward interest rate swap transactions involve each Fund's agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the "effective date"). The amount of the payment obligation is based on the notional amount of the forward swap contract and the termination date of the swap (which is akin to a bond's maturity). The value of the Fund's swap commitment would increase or decrease based primarily on the extent to which long-term interest rates for bonds having a maturity of the swap's termination date increases or decreases. The Funds may terminate a swap contract prior to the effective date, at which point a realized gain or loss is recognized. When a forward swap is terminated, it ordinarily does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash on a net basis. Each Fund intends, but is not obligated, to terminate its forward swaps before the effective date. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the credit risk associated with a counterparty failing to honor its commitment to pay any realized gain to the Fund upon termination. To reduce such credit risk, all counterparties are required to pledge collateral daily (based on the daily valuation of 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. New York Quality Income (NUN) and Insured New York Tax-Free Advantage (NRK) were the only Funds to invest in forward interest rate swap transactions during the six months ended March 31, 2008. Zero Coupon Securities Each Fund is authorized to invest in zero coupon securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. Such securities are included in the Portfolios of Investments with a 0.000% coupon rate in their description. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which a Fund overdraws its account at the custodian bank. Indemnifications Under the Funds' organizational documents, their Officers and Directors/Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates. 2. FUND SHARES On July 10, 2007, the Board of Directors/Trustees 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 broad, 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. 67 Notes to FINANCIAL STATEMENTS (continued) (Unaudited) Transactions in Common shares were as follows:
NEW YORK NEW YORK NEW YORK INVESTMENT QUALITY (NQN) SELECT QUALITY (NVN) QUALITY INCOME (NUN) ------------------------ ----------------------- ------------------------ SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 3/31/08 9/30/07 3/31/08 9/30/07 3/31/08 9/30/07 ------------------------------------------------------------------------------------------------------------------- Common shares: Issued to shareholders due to reinvestment of distributions -- -- -- -- -- -- Repurchased (21,700) (97,300) (5,600) (118,800) (7,700) (171,600) ------------------------------------------------------------------------------------------------------------------- Weighted average price per Common share repurchased $13.24 $13.58 $12.83 $13.79 $12.57 $13.49 Weighted average discount per Common share repurchased 11.53% 7.19% 13.26% 7.12% 14.00% 7.74% =================================================================================================================== INSURED NEW YORK INSURED NEW YORK INSURED NEW YORK PREMIUM INCOME (NNF) DIVIDEND ADVANTAGE (NKO) TAX-FREE ADVANTAGE (NRK) ------------------------ ------------------------- ------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 3/31/08 9/30/07 3/31/08 9/30/07 3/31/08 9/30/07 -------------------------------------------------------------------------------------------------------------------- Common shares: Issued to shareholders due to reinvestment of distributions -- -- -- 6,197 -- 512 Repurchased -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Weighted average price per Common share repurchased -- -- -- -- -- -- Weighted average discount per Common share repurchased -- -- -- -- -- -- ====================================================================================================================
3. INVESTMENT TRANSACTIONS Purchases and sales (including maturities but excluding short-term investments and derivative transactions) during the six months ended March 31, 2008, 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 $27,690,926 $47,820,601 $40,528,222 $16,458,144 $11,910,951 $7,044,292 Sales and maturities 29,483,503 58,628,657 41,065,125 17,647,696 10,278,628 6,744,126 ===================================================================================================================
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 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. 68 At March 31, 2008, 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 $385,532,069 $505,942,954 $520,236,121 $179,179,300 $168,539,885 $74,509,033 ========================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments at March 31, 2008, 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 $ 9,228,273 $15,417,295 $14,359,468 $ 3,989,319 $ 3,872,457 $1,588,555 Depreciation (4,334,820) (5,443,716) (5,865,061) (2,265,681) (1,605,950) (700,031) ------------------------------------------------------------------------------------------------------------------------ Net unrealized appreciation (depreciation) of investments $ 4,893,453 $ 9,973,579 $ 8,494,407 $ 1,723,638 $ 2,266,507 $ 888,524 ========================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at September 30, 2007, the Funds' last 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' last tax year ended September 30, 2007 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 (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 ========================================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. The following Funds have elected to defer net realized losses from investments incurred from November 1, 2006 through September 30, 2007, the Funds' last 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 current fiscal year: INSURED INSURED NEW YORK NEW YORK NEW YORK NEW YORK INVESTMENT SELECT PREMIUM TAX-FREE QUALITY QUALITY INCOME ADVANTAGE (NQN) (NVN) (NNF) (NRK) -------------------------------------------------------------------------------- $309,645 $95,228 $154,238 $96,747 ================================================================================ 69 Notes to FINANCIAL STATEMENTS (continued) (Unaudited) 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 March 31, 2008, the complex-level fee rate was .1870%. 70 The complex-level fee schedule is as follows: COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL -------------------------------------------------------------------------------- $55 billion .2000% $56 billion .1996 $57 billion .1989 $60 billion .1961 $63 billion .1931 $66 billion .1900 $71 billion .1851 $76 billion .1806 $80 billion .1773 $91 billion .1691 $125 billion .1599 $200 billion .1505 $250 billion .1469 $300 billion .1445 ================================================================================ (1) The complex-level fee component of the management fee for the funds is calculated based upon the aggregate Managed Assets ("Managed Assets" means the average daily net assets of each fund including assets attributable to preferred stock issued by or borrowings by the Nuveen funds) of Nuveen-sponsored funds in the U.S. The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those of its Directors/Trustees who are affiliated with the Adviser or to its Officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Directors/Trustees has adopted a deferred compensation plan for independent Directors/Trustees that enables Directors/Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised funds. For the first ten years of Insured 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. 71 Notes to FINANCIAL STATEMENTS (continued) (Unaudited) 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. 6. NEW ACCOUNTING PRONOUNCEMENTS Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157 In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements." This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of this standard relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of March 31, 2008, management does not believe the adoption of SFAS No. 157 will impact the financial statement amounts; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements included within the Statement of Operations for the period. Financial Accounting Standards Board Statement of Financial Accounting Standards No. 161 In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative Instruments and Hedging Activities." This standard is intended to enhance financial statement disclosures for derivative instruments and hedging activities and enable investors to understand: a) how and why a fund uses derivative instruments, b) how derivative instruments and related hedge items are accounted for, and c) how derivative instruments and related hedge items affect a fund's financial position, results of operations and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008, and interim periods within those fiscal years. As of March 31, 2008, management does not believe the adoption of SFAS No. 161 will impact the financial statement amounts; however, additional footnote disclosures may be required about the use of derivative instruments and hedging items. 72 7. SUBSEQUENT EVENTS Auction Rate Preferred Markets Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the Preferred shares issued by the Funds than there were offers to buy. This meant that these auctions "failed to clear,'' and that many Preferred shareholders who wanted to sell their shares in these auctions were unable to do so. Preferred shareholders unable to sell their shares received distributions at the "maximum rate'' calculated in accordance with the pre-established terms of the Preferred shares. These developments generally do not affect the management or investment policies of the Funds. However, one implication of these auction failures for Common shareholders is that the Funds' cost of leverage will be higher than it otherwise would have been had the auctions continued to be successful. As a result, the Funds' future Common share earnings may be lower than they otherwise would have been. Distributions to Common Shareholders The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on May 1, 2008, to shareholders of record on April 15, 2008, 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 ========================================================================================================================
73 Financial HIGHLIGHTS (Unaudited) 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: 2008(b) $14.77 $ .45 $(.46) $(.14) $ -- $ (.15) $(.31) $ -- $ (.31) 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: 2008(b) 14.98 .46 (.57) (.14) --**** (.25) (.32) (.01) (.33) 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: 2008(b) $ -- $14.31 $13.09 (2.16)% (1.02)% 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: 2008(b) -- 14.40 12.90 (4.60) (1.72) 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: 2008(b) $251,925 1.37%* 1.24%* 6.10%* 1.36%* 1.23%* 6.12%* 7% 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: 2008(b) 335,746 1.35* 1.21* 6.14* 1.32* 1.19* 6.16* 9 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: 2008(b) $144,000 $25,000 $68,737 $10,910 $37,290 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: 2008(b) 193,000 25,000 68,490 14,635 37,129 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 -- -- ================================================================================ * 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. **** 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 six months ended March 31, 2008. See accompanying notes to financial statements. 74-75 spread Financial HIGHLIGHTS (continued) (Unaudited) 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: 2008(b) $14.79 $ .45 $(.54) $(.15) $ --**** $(.24) $(.31) $(.01) $ (.32) 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: 2008(b) 14.88 .44 (.50) (.14) -- (.20) (.30) -- (.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: 2008(b) $ -- $14.23 $12.73 (3.10)% (1.68)% 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: 2008(b) -- 14.38 13.17 (.49) (1.35) 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: 2008(b) $340,164 1.35%* 1.22%* 6.06%* 1.33%* 1.20%* 6.08%* 7% 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: 2008(b) 119,785 1.36* 1.23* 5.88* 1.33* 1.21* 5.91* 9 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: 2008(b) $197,000 $25,000 $68,168 $14,845 $37,185 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: 2008(b) 65,000 25,000 71,071 5,080 37,375 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 -- -- ================================================================================ * 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. **** 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 six months ended March 31, 2008. See accompanying notes to financial statements. 76-77 spread Financial HIGHLIGHTS (continued) (Unaudited) 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: 2008(c) $14.96 $ .47 $(.52) $(.13) $(.01) $ (.19) $(.33) $(.03) $ (.36) 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: 2008(c) 14.65 .45 (.36) (.12) --**** (.03) (.33) --***** (.33) 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: 2008(c) $ -- $14.41 $13.12 (4.46)% (1.32)% 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: 2008(c) -- 14.29 13.21 (1.51) (.23) 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: 2008(c) $114,749 1.32%* 1.20%* 5.96%* .92%* .79%* 6.37%* 6% 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: 2008(c) 50,222 1.37* 1.24* 5.67* .94* .81* 6.11* 9 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: 2008(c) $61,000 $25,000 $72,028 $4,830 $37,387 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: 2008(c) 27,000 25,000 71,502 2,095 37,860 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. **** Distributions from Capital Gains to Preferred Shareholders rounds to less than $.01 per share. *****Distributions from Capital Gains to Common Shareholders rounds to less than $.01 per share. + 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. (c) For the six months ended March 31, 2008. See accompanying notes to financial statements. 78-79 spread Reinvest Automatically EASILY and CONVENIENTLY NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional Fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund's shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares' net asset value or 95% of the shares' market value on the last business day immediately prior to the purchase date. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. 80 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. 81 Glossary of TERMS USED in this REPORT [] AUCTION RATE BOND: An auction rate bond is a security whose interest payments are adjusted periodically through an auction process, which process typically also serves as a means for buying and selling the bond. Auctions that fail to attract enough buyers for all the shares offered for sale are deemed to have "failed", with current holders receiving a formula-based interest rate until the next scheduled auction. [] 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 Preferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. [] 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. 82 Other Useful INFORMATION QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION You may obtain (i) each Fund's quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the twelve-month period ended June 30, 2007, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at www.nuveen.com. You may also obtain this and other Fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public References Section at 100 F Street NE, Washington, D.C. 20549. CEO CERTIFICATION DISCLOSURE Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the SEC the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act. BOARD OF DIRECTORS/TRUSTEES Robert P. Bremner Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Carole E. Stone FUND MANAGER Nuveen Asset Management 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN State Street Bank & Trust Company Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust Company Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 LEGAL COUNSEL Chapman and Cutler LLP Chicago, IL INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP Chicago, IL Each Fund intends to repurchase shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report, NQN, NVN, and NUN repurchased 21,700, 5,600, and 7,700 common shares, respectively. Any future repurchases will be reported to shareholders in the next annual or semi-annual report. 83 Nuveen Investments: ------------------- SERVING INVESTORS FOR GENERATIONS Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles. We offer many different investing solutions for our clients' different needs. Managing $153 billion in assets, as of March 31, 2008, Nuveen Investments offers access to a number of different asset classes and investing solutions through a variety of products. Nuveen Investments markets its capabilities under six distinct brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in growth-style equities; Symphony, a leading institutional manager of market-neutral alternative investment portfolios; Santa Barbara, a leader in growth equities; and Tradewinds, a leader in global equities. Find out how we can help you reach your financial goals. To learn more about the products and services Nuveen Investments offers, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Be sure to obtain a prospectus, where applicable. Investors should consider the investment objective and policies, risk considerations, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information relevant to an investment in the Fund. For a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money. Learn more about Nuveen Funds at: www.nuveen.com/etf Share prices Fund details Daily financial news Investor education Interactive planning tools ESA-B-0308D ITEM 2. CODE OF ETHICS. Not applicable to this filing. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable to this filing. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable to this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to this filing. ITEM 6. SCHEDULE OF INVESTMENTS. See Portfolio of Investments in Item 1. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board implemented after the registrant last provided disclosure in response to this Item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. File the exhibits listed below as part of this Form. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable to this filing. (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See Ex-99.CERT attached hereto. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference: See Ex-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen Insured New York Tax-Free Advantage Municipal Fund ----------------------------------------------------------- By (Signature and Title) /s/ Kevin J. McCarthy ---------------------------------------------- Kevin J. McCarthy (Vice President and Secretary) Date: June 6, 2008 ------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title) /s/ Gifford R. Zimmerman ---------------------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) Date: June 6, 2008 ------------------------------------------------------------------- By (Signature and Title) /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: June 6, 2008 -------------------------------------------------------------------