N-30D 1 dn30d.txt NUVEEN MULTISTATE TRUST I NUVEEN Investments Nuveen Municipal Bond Funds Semiannual Report dated November 30, 2001 Dependable, tax-free income to help you keep more of what you earn. [Photos Appear Here] Nuveen Arizona Municipal Bond Fund Nuveen Colorado Municipal Bond Fund Nuveen New Mexico Municipal Bond Fund Less mail more freedom with online fund reports There is a new way to receive your Nuveen Fund updates faster than ever. Nuveen now can link you with electronic versions of the important financial information we send you by regular mail. By registering for online access via the internet, you will be able to view and save the Fund information you currently receive in the mail. This information can be stored on your computer and retrieved any time. In addition, you can select only the specific pages you want to view or print. With this new service, you'll receive an e-mail notice the moment Fund reports are ready. This notice will contain a link to the report - all you have to do is click your computer mouse on the internet address provided. You'll be saving time, as well as saving your Fund paper, printing and distribution expenses. Registering for electronic access is easy and only takes a few minutes. (see below) The e-mail address you provide is strictly confidential and will not be used for anything other than notifications of shareholder information. And if you decide you don't like receiving your reports electronically, it's a simple process to go back to regular mail delivery. Sign up today -- here's what you need to do... If your Nuveen Fund dividends are PAID TO YOUR BROKERAGE ACCOUNT, follow the steps outlined below: 1. Go to www.investordelivery.com 2. Look at the address sheet that accompanied this report. Enter the personal 13-character enrollment number imprinted near your name on the address sheet. 3. You'll be taken to a page with several options. Select the New Enrollment- Create screen. Once there, enter your e-mail address (yourID@providerID.com), and a personal, 4-digit PIN of your choice. (Pick a number that's easy to remember.) 4. Click Submit. Confirm the information you just entered is correct, then click Submit again. 5. You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 6. Use this same process if you need to change your registration information or cancel internet viewing. If your Nuveen Fund dividends COME DIRECTLY TO YOU FROM NUVEEN, follow the steps outlined below: 1. Go to www.nuveen.com 2. Select the Access Account tab. Select the E-Report Enrollment section. Click on Enrollment Page. 3. You'll be taken to a screen that asks for your social security number and e- mail address. Fill in this information, then click Enroll. 4. You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 5. Use this same process if you need to change your registration information or cancel internet viewing. Must be preceded by or accompanied by a prospectus. Dear Shareholder, [PHOTO OF TIMOTHY R. SCHWERTFEGER APPEARS HERE] In the aftermath of September 11, the financial markets have reacted with volatility and uncertainty as investors attempt to better understand how the U.S. and world economies are likely to perform in the months ahead. It's too soon to tell what the long-term impact will be on the markets or your Fund, but one thing that is increasingly clear to us is that a diversified portfolio that includes high quality municipal bonds can leave you well positioned to reduce overall investment volatility. For example, during the period covered by this report, your Nuveen Fund continued to meet its primary objective of providing you with dependable, tax- free income to help you keep more of what you earn. Detailed information on your Fund's performance can be found in the Fund Spotlight later in this report. In addition to providing you with high current income exempt from federal taxes, your Nuveen Fund also features several characteristics that can help make it an essential part of your overall investment strategy. These include careful research, constant surveillance and broad trading execution by Nuveen's seasoned portfolio management team, with every action designed to supplement income, improve Fund structure, better adapt to current market conditions or increase diversification. In turbulent times like these, prudent investors understand the importance of diversification, balance, and risk management, all attributes your Nuveen Fund can bring to your portfolio. For more than 100 years, Nuveen has specialized in offering quality investments such as these Nuveen Funds to those seeking to accumulate and preserve wealth and establish a lasting legacy. Our mission continues to be to assist you and your financial advisor by offering the investment services and products that can help you invest well and leave your mark for future generations. We thank you for continuing to choose Nuveen Investments as your partner as you work toward that goal. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board January 15, 2002
Dear Shareholder................................ 1 Market Commentary............................... 2 Arizona Spotlight............................... 3 Colorado Spotlight.............................. 4 New Mexico Spotlight............................ 5 Portfolio of Investments........................ 6 Statement of Net Assets......................... 17 Statement of Operations......................... 18 Statement of Changes in Net Assets.............. 19 Notes to Financial Statements................... 20 Financial Highlights............................ 26 Fund Information................................ 29
Page 1 Market Commentary Nuveen Research Continued uncertainty and volatile equity markets characterized the economic landscape over the six-months ended November 30, 2001. Many observers now believe that the United States has been in a recession since the spring. Since our last report, unemployment has risen, corporate capital expenditures have dropped and indicators of consumer sentiment have declined. The Federal Reserve has responded by cutting the fed funds rate 11 times through the course of 2001 to eventually reach 1.75%, the lowest level in 40 years. Partially as a result of these lower rates and weaker economic conditions, the general municipal market performed well over this reporting period. The yield of the widely followed Bond Buyer 20 Municipal Bond Index fell to 5.15% as of November 30, 2001, compared with 5.28% six months earlier. Low interest rates and a slowing economy also caused new municipal issuance to grow, with new issue supply topping $252 billion for the 11 months ended November 30, 2001, a 37% increase over the same period in 2000. Some of this increase in volume may have been driven by economic conditions that made it more difficult for municipalities to finance projects from current revenues. The erosion of tax bases caused by the declining economy, increased expenses for Medicaid, additional unemployment compensation claims, and unanticipated expenses related to homeland security may cause issuers to continue feeling the pinch in revenues as we head into 2002. Some recent surveys of governors and state budget officers indicate that state budget shortfalls for fiscal year 2002 could rise to between $40 and $50 billion. While the rainy-day funds which states built up over the prolonged growth during the mid- to late- 1990s should leave states in a better position than they were in the previous recession of 1991-92, some officials now fear that this recession, and thus also state budget shortfalls, may be deeper than last time. As we look toward the next six to twelve months, we anticipate there may be some degree of improvement in the economy, given the government's focus on stimulating consumer demand. However, since many consumers are already carrying large amounts of personal debt, near-term recovery may be muted until corporate capital expenditures start to rebound. Absent global deflation, we expect the fed funds rate to remain stable or gradually to drift higher as we move through 2002. Page 2
Fund Spotlight As of November 30, 2001 Nuveen Arizona Municipal Bond Fund -------------------------------------------------------------------------------- Quick Facts A Shares B Shares C Shares R Shares -------------------------------------------------------------------------------- NAV $ 11.06 $ 11.05 $ 11.05 $ 11.05 -------------------------------------------------------------------------------- Latest Dividend/1/ $0.0445 $0.0375 $0.0395 $0.0465 -------------------------------------------------------------------------------- CUSIP 67065L104 67065L203 67065L302 67065L401 -------------------------------------------------------------------------------- Inception Date 10/86 2/97 2/94 2/97 -------------------------------------------------------------------------------- Annualized Total Returns as of 11/30/01/2/ A Shares NAV Offer 1-Year 8.55% 3.98% ------------------------------------------------------- 5-Year 5.22% 4.31% ------------------------------------------------------- 10-Year 6.74% 6.29% ------------------------------------------------------- B Shares w/o CDSC w/CDSC ------------------------------------------------------- 1-Year 7.79% 3.79% ------------------------------------------------------- 5-Year 4.44% 4.27% ------------------------------------------------------- 10-Year 6.22% 6.22% ------------------------------------------------------- C Shares NAV 1-Year 7.88% ------------------------------------------------------- 5-Year 4.64% ------------------------------------------------------- 10-Year 6.16% ------------------------------------------------------- R Shares NAV 1-Year 8.70% ------------------------------------------------------- 5-Year 5.42% ------------------------------------------------------- 10-Year 6.84% ------------------------------------------------------- Tax-Free Yields as of 11/30/01 A Shares NAV Offer SEC 30-Day Yield 4.16% 3.99% ------------------------------------------------------- Taxable-Equivalent Yield/3/ 6.31% 6.05% ------------------------------------------------------- B Shares NAV SEC 30-Day Yield 3.40% ----------------------------------------- Taxable-Equivalent Yield/3/ 5.15% ----------------------------------------- C Shares NAV SEC 30-Day Yield 3.60% ----------------------------------------- Taxable-Equivalent Yield/3/ 5.45% ----------------------------------------- R Shares NAV SEC 30-Day Yield 4.36% ----------------------------------------- Taxable-Equivalent Yield/3/ 6.61% ----------------------------------------- Annualized Total Returns as of 9/30/01/2/ A Shares NAV Offer 1-Year 9.88% 5.22% ----------------------------------------- 5-Year 5.76% 4.85% ----------------------------------------- 10-Year 6.80% 6.34% ----------------------------------------- B Shares w/o CDSC w/CDSC 1-Year 9.11% 5.11% ----------------------------------------- 5-Year 4.98% 4.82% ----------------------------------------- 10-Year 6.27% 6.27% ----------------------------------------- C Shares NAV 1-Year 9.20% ----------------------------------------- 5-Year 5.18% ----------------------------------------- 10-Year 6.21% ----------------------------------------- R Shares NAV 1-Year 10.02% ----------------------------------------- 5-Year 5.95% ----------------------------------------- 10-Year 6.90% ----------------------------------------- Top Five Sectors/4/ Housing (Multifamily) 18% ----------------------------------------- U.S. Guaranteed 17% ----------------------------------------- Healthcare 16% ----------------------------------------- Tax Obligation (Limited) 12% ----------------------------------------- Tax Obligation (General) 9% ----------------------------------------- Portfolio Statistics Total Net Assets $102.3 million ----------------------------------------- Average Duration 7.59 ----------------------------------------- Average Effective Maturity 18.50 years ----------------------------------------- Returns are historical and do not guarantee future performance. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Performance of classes will differ. For additional information, please see the fund prospectus. 1 Paid December 3, 2001. This is the latest monthly dividend declared during the period ended November 30, 2001. 2 Class A share returns are actual. Class B, C and R share returns are actual for the period since class inception; returns prior to class inception are Class A share returns adjusted for differences in sales charges and expenses, which are primarily differences in distribution and service fees. Class A shares have a 4.2% maximum sales charge. Class B shares have a CDSC that begins at 5% for redemptions during the first year after purchase and declines periodically to 0% over the following five years. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within one year, which is not reflected in the one-year total return. 3 Based on the SEC 30-Day Yield and a combined federal and state income tax rate of 34%. 4 As a percentage of total bond holdings as of November 30, 2001. Holdings are subject to change.
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Fund Spotlight As of November 30, 2001 Nuveen Colorado Municipal Bond Fund -------------------------------------------------------------------------------- Quick Facts A Shares B Shares C Shares R Shares -------------------------------------------------------------------------------- NAV $ 10.23 $ 10.24 $ 10.22 $ 10.22 -------------------------------------------------------------------------------- Latest Dividend/1/ $0.0435 $0.0375 $0.0390 $0.0455 -------------------------------------------------------------------------------- CUSIP 67065L609 67065L500 67065L807 67065L880 -------------------------------------------------------------------------------- Inception Date 5/87 2/97 2/97 2/97 -------------------------------------------------------------------------------- Annualized Total Returns as of 11/30/01/2/ A Shares NAV Offer 1-Year 9.15% 4.59% ------------------------------------------------------- 5-Year 5.18% 4.28% ------------------------------------------------------- 10-Year 6.61% 6.16% ------------------------------------------------------- B Shares w/o CDSC w/CDSC 1-Year 8.37% 4.37% ------------------------------------------------------- 5-Year 4.44% 4.27% ------------------------------------------------------- 10-Year 6.11% 6.11% ------------------------------------------------------- C Shares NAV 1-Year 8.58% ------------------------------------------------------- 5-Year 4.60% ------------------------------------------------------- 10-Year 6.13% ------------------------------------------------------- R Shares NAV 1-Year 9.38% ------------------------------------------------------- 5-Year 5.36% ------------------------------------------------------- 10-Year 6.70% ------------------------------------------------------- Tax-Free Yields as of 11/30/01 A Shares NAV Offer SEC 30-Day Yield 4.59% 4.40% ------------------------------------------------------- Taxable-Equivalent Yield/3/ 6.91% 6.62% ------------------------------------------------------- B Shares NAV SEC 30-Day Yield 3.84% ------------------------------------------------------- Taxable-Equivalent Yield/3/ 5.77% ------------------------------------------------------- C Shares NAV SEC 30-Day Yield 4.04% ------------------------------------------------------- Taxable-Equivalent Yield/3/ 6.08% ------------------------------------------------------- R Shares NAV SEC 30-Day Yield 4.80% ------------------------------------------------------- Taxable-Equivalent Yield/3/ 7.22% ------------------------------------------------------- Annualized Total Returns as of 9/30/01/2/ A Shares NAV Offer 1-Year 10.58% 5.93% ------------------------------------------------------- 5-Year 5.91% 5.00% ------------------------------------------------------- 10-Year 6.70% 6.24% ------------------------------------------------------- B Shares w/o CDSC w/CDSC 1-Year 9.89% 5.89% ------------------------------------------------------- 5-Year 5.19% 5.03% ------------------------------------------------------- 10-Year 6.19% 6.19% ------------------------------------------------------- C Shares NAV 1-Year 10.10% ------------------------------------------------------- 5-Year 5.35% ------------------------------------------------------- 10-Year 6.23% ------------------------------------------------------- R Shares NAV 1-Year 10.90% ------------------------------------------------------- 5-Year 6.11% ------------------------------------------------------- 10-Year 6.79% ------------------------------------------------------- Top Five Sectors/4/ Healthcare 18% ------------------------------------------------------- Tax Obligation (Limited) 17% ------------------------------------------------------- Transportation 13% ------------------------------------------------------- Housing (Multifamily) 11% ------------------------------------------------------- Housing (Single Family) 10% ------------------------------------------------------- Portfolio Statistics Total Net Assets $43.1 million ------------------------------------------------------- Average Duration 8.07 ------------------------------------------------------- Average Effective Maturity 20.39 years -------------------------------------------------------
Returns are historical and do not guarantee future performance. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Performance of classes will differ. For additional information, please see the fund prospectus. 1 Paid December 1, 2001. This is the latest monthly dividend declared during the period ended November 30, 2001. 2 Class A share returns are actual. Class B, C and R share returns are actual for the period since class inception; returns prior to class inception are Class A share returns adjusted for differences in sales charges and expenses, which are primarily differences in distribution and service fees. Class A shares have a 4.2% maximum sales charge. Class B shares have a CDSC that begins at 5% for redemptions during the first year after purchase and declines periodically to 0% over the following five years. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within one year, which is not reflected in the one-year total return. 3 Based on the SEC 30-Day Yield and a combined federal and state income tax rate of 33.5%. 4 As a percentage of total bond holdings as of November 30, 2001. Holdings are subject to change. Page 4 -------------------------------------------------------------------------------- Fund Spotlight As of November 30, 2001 Nuveen New Mexico Municipal Bond Fund ================================================================================
Quick Facts A Shares B Shares C Shares R Shares -------------------------------------------------------------------------------- NAV $ 10.33 $10.33 $10.32 $10.36 -------------------------------------------------------------------------------- Latest Dividend/1/ $0.0410 $0.0345 $0.0360 $0.0425 -------------------------------------------------------------------------------- CUSIP 67065L781 67065L773 67065L765 67065L757 -------------------------------------------------------------------------------- Inception Date 9/92 2/97 2/97 2/97 -------------------------------------------------------------------------------- Annualized Total Returns as of 11/30/01/2/ A Shares NAV Offer 1-Year 8.06% 3.51% -------------------------------------------------- 5-Year 5.07% 4.17% -------------------------------------------------- Since Inception 5.97% 5.48% -------------------------------------------------- B Shares w/o CDSC w/CDSC 1-Year 7.25% 3.25% -------------------------------------------------- 5-Year 4.29% 4.12% -------------------------------------------------- Since Inception 5.39% 5.39% -------------------------------------------------- C Shares NAV 1-Year 7.45% -------------------------------------------------- 5-Year 4.50% -------------------------------------------------- Since Inception 5.49% -------------------------------------------------- R Shares NAV 1-Year 8.33% -------------------------------------------------- 5-Year 5.32% -------------------------------------------------- Since Inception 6.11% -------------------------------------------------- Tax-Free Yields as of 11/30/01 A Shares NAV Offer SEC 30-Day Yield 4.13% 3.96% -------------------------------------------------- Taxable-Equivalent Yield/3/ 6.46% 6.19% -------------------------------------------------- B Shares NAV SEC 30-Day Yield 3.38% -------------------------------------------------- Taxable-Equivalent Yield/3/ 5.28% -------------------------------------------------- C Shares NAV SEC 30-Day Yield 3.59% -------------------------------------------------- Taxable-Equivalent Yield/3/ 5.61% -------------------------------------------------- R Shares NAV SEC 30-Day Yield 4.34% -------------------------------------------------- Taxable-Equivalent Yield/3/ 6.78% -------------------------------------------------- Annualized Total Returns as of 9/30/01/2/ A Shares NAV Offer 1-Year 9.15% 4.54% -------------------------------------------------- 5-Year 5.68% 4.78% -------------------------------------------------- Since Inception 6.09% 5.58% B Shares w/o CDSC w/CDSC 1-Year 8.44% 4.44% -------------------------------------------------- 5-Year 4.91% 4.74% -------------------------------------------------- Since Inception 5.49% 5.49% -------------------------------------------------- C Shares NAV 1-Year 8.65% -------------------------------------------------- 5-Year 5.14% -------------------------------------------------- Since Inception 5.62% -------------------------------------------------- R Shares NAV 1-Year 9.43% -------------------------------------------------- 5-Year 5.93% -------------------------------------------------- Since Inception 6.23% -------------------------------------------------- Top Five Sectors/4/ Housing (Single Family) 22% -------------------------------------------------- Tax Obligation (Limited) 21% -------------------------------------------------- Education and Civic Organizations 15% -------------------------------------------------- Healthcare 11% -------------------------------------------------- Utilities 10% -------------------------------------------------- Portfolio Statistics Total Net Assets $53.4 million -------------------------------------------------- Average Duration 7.26 -------------------------------------------------- Average Effective Maturity 21.27 years --------------------------------------------------
Returns are historical and do not guarantee future performance. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Performance of classes will differ. For additional information, please see the fund prospectus. 1 Paid December 3, 2001. This is the latest monthly dividend declared during the period ended November 30, 2001. 2 Class A share returns are actual. Class B, C and R share returns are actual for the period since class inception; returns prior to class inception are Class A share returns adjusted for differences in sales charges and expenses, which are primarily differences in distribution and service fees. Class A shares have a 4.2% maximum sales charge. Class B shares have a CDSC that begins at 5% for redemptions during the first year after purchase and declines periodically to 0% over the following five years. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within one year, which is not reflected in the one-year total return. 3 Based on the SEC 30-Day Yield and a combined federal and state income tax rate of 36%. 4 As a percentage of long-term bond holdings as of November 30, 2001. Holdings are subject to change. Page 5 Portfolio of Investments (Unaudited) Nuveen Arizona Municipal Bond Fund November 30, 2001
Principal Optional Call Amount (000) Description Provisions* Ratings** Market Value ------------------------------------------------------------------------------- Consumer Cyclicals - 1.0% $ 1,000 Mesa Industrial No Opt. Call N/R $ 1,016,370 Development Authority, Arizona, Industrial Revenue Bonds (TRW Vehicle Safety System, Inc. Project), Series 1992, 7.250%, 10/15/04 (Alternative Minimum Tax) ------------------------------------------------------------------------------- Consumer Staples - 0.3% 250 Casa Grande Industrial 12/02 at 103 A1 266,655 Development Authority, Arizona, Pollution Control Revenue Bonds (Frito-Lay, Inc./PepsiCo), Series 1984, 6.650%, 12/01/14 ------------------------------------------------------------------------------- Education and Civic Organizations - 8.9% 570 Arizona Educational Loan 3/02 at 101 Aa2 579,855 Marketing Corporation, 1992 Educational Loan Revenue Bonds, Series B, 7.000%, 3/01/05 (Alternative Minimum Tax) 100 Arizona Educational Loan 9/02 at 101 Aa2 102,775 Marketing Corporation, Educational Loan Revenue Bonds, 6.375%, 9/01/05 (Alternative Minimum Tax) 1,500 Student Loan Acquisition 5/04 at 102 Aa1 1,624,995 Authority of Arizona, Student Loan Revenue Bonds, Series 1994B, Subordinated Fixed Rate Bonds, 6.600%, 5/01/10 (Alternative Minimum Tax) 500 Student Loan Acquisition 11/09 at 102 Aaa 515,185 Authority of Arizona, Student Loan Revenue Refunding Bonds, Senior Series 1999A-1, 5.900%, 5/01/24 2,500 The Industrial Development 5/08 at 101 BBB+ 2,436,575 Authority of the City of Glendale, Arizona, Revenue Bonds, Midwestern University, Series 1998A, 5.375%, 5/15/28 115 The Industrial Development 5/06 at 102 AAA 123,757 Authority of the City of Glendale, Arizona, Revenue Bonds, Midwestern University, Series 1996A, 6.000%, 5/15/16 The Industrial Development Authority of the City of Glendale, Arizona, Revenue Bonds, Midwestern University, Series 2001A: 1,730 5.750%, 5/15/21 5/11 at 101 BBB+ 1,763,303 1,250 5.875%, 5/15/31 5/11 at 101 BBB+ 1,277,788 300 Arizona Board of Regents, 6/02 at 102 AA 311,682 University of Arizona, System Revenue Refunding Bonds, Series 1992, 6.250%, 6/01/11 335 Community College District 7/03 at 101 BBB+ 342,715 of Yavapai County, Arizona, Revenue Bonds, Series 1993, 6.000%, 7/01/12 ------------------------------------------------------------------------------- Healthcare - 16.2% 4,000 Arizona Health Facilities 11/09 at 100 A3 4,116,440 Authority, Hospital Revenue Bonds (Phoenix Children's Hospital), Series 1999A, 6.125%, 11/15/22 2,050 Arizona Health Facilities 12/10 at 102 BBB 2,098,442 Authority, Hospital System Revenue Bonds, John C. Lincoln Health Network, Series 2000, 6.875%, 12/01/20 1,000 Arizona Health Facilities 7/10 at 101 BBB 1,049,450 Authority, Revenue Bonds (Catholic Healthcare West), 1999 Series A, 6.625%, 7/01/20 930 Maricopa County, Arizona, 4/07 at 102 Baa1 930,000 Hospital Revenue and Refunding Bonds, Series 1997 (Sun Health Corporation), 6.125%, 4/01/18 3,475 The Industrial Development 7/08 at 101 BBB 3,249,125 Authority of the County of Maricopa, Arizona, Health Facility Revenue Bonds (Catholic Healthcare West Project), 1998 Series A, 5.000%, 7/01/16 1,500 The Industrial Development 1/10 at 101 AAA 1,580,715 Authority of the City of Mesa, Arizona, Revenue Bonds (Discovery Health System), Series 1999A, 5.750%, 1/01/25 The Industrial Development Authority of the City of Phoenix, Arizona, Hospital Revenue Bonds (John C. Lincoln Hospital and Health Center), Series 1994: 500 6.000%, 12/01/10 12/03 at 102 BBB 505,510 500 6.000%, 12/01/14 12/03 at 102 BBB 498,660 1,750 Industrial Development 12/11 at 101 A3 1,723,575 Authority of the City of Scottsdale, Arizona, Hospital Revenue Bonds, Scottsdale Healthcare, Series 2001, 5.800%, 12/01/31 1,055 The Industrial Development 6/08 at 101 N/R 855,626 Authority of the City of Winslow, Arizona, Hospital Revenue Bonds (Winslow Memorial Hospital Project), Series 1998, 5.500%, 6/01/22
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Principal Optional Call Amount (000) Description Provisions* Ratings** Market Value ------------------------------------------------------------------------------- Housing/Multifamily - 18.0% $ 2,865 The Industrial Development 10/09 at 102 N/R $ 2,657,946 Authority of the County of Maricopa, Arizona, Multifamily Housing Revenue Bonds (Arborwood Apartments Project), Subordinate Series 1999B, 6.700%, 10/01/29 3,615 The Industrial Development 10/10 at 105 Aaa 3,940,531 Authority of the County of Maricopa, Arizona, Multifamily Housing Revenue Bonds (GNMA Collateralized Villas at Augusta Project), Series 2000, 6.500%, 10/20/33 2,470 The Industrial Development 10/11 at 103 Aaa 2,596,044 Authority of the County of Maricopa, Arizona, Multifamily Housing Revenue Bonds (Syl-Mar Apartments Project), Series 2001, 6.100%, 4/20/36 295 Phoenix Housing Finance 7/02 at 101 AAA 299,912 Corporation, Arizona, Mortgage Revenue Refunding Bonds, Series 1992A (FHA-Insured Mortgage Loans - Section 8 Assisted Projects), 6.500%, 7/01/24 The Industrial Development Authority of the City of Phoenix, Arizona, Mortgage Revenue Refunding Bonds, Series 1992 (FHA-Insured Mortgage Loan - Chris Ridge Village Project): 200 6.750%, 11/01/12 11/02 at 101 AAA 204,590 425 6.800%, 11/01/25 11/02 at 101 AAA 434,979 2,090 Industrial Development 6/11 at 102 Aaa 2,154,915 Authority of the City of Phoenix, Arizona, Multifamily Housing Revenue Bonds, Series 2001 (GNMA Collateralized - Campaigne Place on Jackson Project), 5.700%, 6/20/31 (Alternative Minimum Tax) 1,300 The Industrial Development 9/10 at 103 Aaa 1,419,964 Authority of the City of Phoenix, Arizona, Multifamily Housing Revenue Bonds (GNMA Collateralized Mortgage Loan - Camelback Crossings Apartments Project), Series 2000, 6.350%, 9/20/35 500 The Industrial Development 6/03 at 102 AAA 511,160 Authority of the City of Tempe, Arizona, Multifamily Mortgage Refunding Bonds, Series 1993A (FHA-Insured Mortgage Loan - Quadrangles Village Apartments), 6.250%, 6/01/26 4,000 The Industrial Development 7/10 at 101 AA 4,073,240 Authority of the County of Tucson, Arizona, Senior Living Facilities Revenue Bonds (The Christian Care Project), Series 2000A, 5.625%, 7/01/20 ------------------------------------------------------------------------------- Housing/Single Family - 3.6% 1,495 The Industrial Development 6/08 at 108 Aaa 1,624,273 Authority of the County of Maricopa, Arizona, Single Family Mortgage Revenue Refunding Bonds (Mortgage-Backed Securities Program), Series 1998B, 6.200%, 12/01/30 (Alternative Minimum Tax) 275 The Industrial Development 6/05 at 102 AAA 296,194 Authority of the City of Phoenix, Arizona, Statewide Single Family Mortgage Revenue Bonds, Series 1995, 6.150%, 12/01/08 (Alternative Minimum Tax) 840 The Industrial Development 6/10 at 105 AAA 961,397 Authority of the City of Phoenix, Arizona, Single Family Mortgage Revenue Bonds, Series 2000-1B, 7.350%, 6/01/31 (Alternative Minimum Tax) 265 The Industrial Development 8/05 at 102 A2 273,570 Authority of the County of Pima, Arizona, Single Family Mortgage Revenue Refunding Bonds, Series 1995A, 6.500%, 2/01/17 555 The Industrial Development 5/07 at 102 AAA 573,565 Authority of the County of Pima, Arizona, Single Family Mortgage Revenue Bonds, Series 1997A, 6.250%, 11/01/30 (Alternative Minimum Tax) ------------------------------------------------------------------------------- Long-Term Care - 1.7% 1,545 The Industrial Development 12/04 at 102 AAA 1,725,441 Authority of the County of Cochise, Arizona, Mortgage Revenue Refunding Bonds, Series 1994A (GNMA Collateralized - Sierra Vista Care Center), 6.750%, 11/20/19 ------------------------------------------------------------------------------- Tax Obligation/General - 9.0% Sierra Vista Unified School District No. 68 of Cochise County, Arizona, General Obligation Refunding Bonds, Series 1992: 250 7.500%, 7/01/09 No Opt. Call AAA 303,470 300 7.500%, 7/01/10 No Opt. Call AAA 368,301 675 Peoria Unified School No Opt. Call AAA 568,742 District No. 11 of Maricopa County, Arizona, Refunding Bonds, Second Series of 1992, 0.000%, 7/01/06 50 Kyrene Elementary School 7/02 at 100 AAA 50,996 District No. 28 of Maricopa County, Arizona, School Improvement Bonds (Project of 1990), Series 1993E, 6.000%, 7/01/12 Glendale Elementary School District No. 40 of Maricopa County, Arizona, School Improvement and Refunding Bonds, Series 1995: 500 6.200%, 7/01/09 7/05 at 101 AAA 550,415 750 6.250%, 7/01/10 7/05 at 101 AAA 826,875
-------------------------------------------------------------------------------- 7 Portfolio of Investments (Unaudited) Nuveen Arizona Municipal Bond Fund (continued) November 30, 2001
Principal Optional Call Amount (000) Description Provisions* Ratings** Market Value ------------------------------------------------------------------------------- Tax Obligation/General (continued) $ 500 Gilbert Unified School 7/08 at 100 AAA $ 546,545 District No. 41 of Maricopa County, Arizona, School Improvement Bonds (Project of 1993), Series 1995D, 6.250%, 7/01/15 135 Alhambra Elementary School 7/04 at 102 AAA 149,697 District No. 68 of Maricopa County, Arizona, School Improvement and Refunding Bonds, Series 1994A, 6.750%, 7/01/14 310 Chandler Unified School No Opt. Call AAA 356,147 District No. 80 of Chandler County, Arizona, School Improvement and Refunding Bonds, Series 1994, 6.250%, 7/01/11 1,275 Fountain Hills Unified No Opt. Call AAA 1,074,290 School District No. 98 of Maricopa County, Arizona, General Obligation Bonds, Series 1992, 0.000%, 7/01/06 1,000 Tucson Unified School No Opt. Call AAA 1,231,710 District No. 1 of Pima County, Arizona, School Improvement Bonds (Project of 1989), Series 1992D, 7.500%, 7/01/10 500 Tanque Verde Unified 7/04 at 102 AAA 553,490 School District No. 13 of Pima County, Arizona, School Improvement and Refunding Bonds, Series 1994, 6.700%, 7/01/10 225 City of Tempe, Arizona, 7/02 at 101 AA+ 232,497 General Obligation Bonds, Series 1992B, 6.000%, 7/01/08 180 Tempe Union High School 7/04 at 101 AAA 193,786 District No. 213 of Maricopa County, Arizona, School Improvement and Refunding Bonds, Series 1994, 6.000%, 7/01/12 2,000 City of Tucson, Arizona, No Opt. Call AA 2,225,420 General Obligation Bonds, Series 2001B, 5.750%, 7/01/16 ------------------------------------------------------------------------------- Tax Obligation/Limited - 12.0% 250 State of Arizona, 9/02 at 102 AAA 261,655 Refunding Certificates of Participation, Series 1992B, 6.250%, 9/01/10 225 Arizona Municipal No Opt. Call AAA 285,329 Financing Program of 1987, Certificates of Participation, Series 11, 8.000%, 8/01/17 965 East Branch Sewer 1/03 at 103 Baa2 1,004,826 Improvement District, Bullhead City, Arizona, Special Assessment Bonds, Series 1993, 6.100%, 1/01/13 280 Eloy Municipal Property 7/02 at 101 BBB 286,003 Corporation, Arizona, Municipal Facilities Revenue Bonds, Series 1992, 7.000%, 7/01/11 385 City of Flagstaff, No Opt. Call AAA 431,316 Arizona, Junior Lien Street and Highway User Revenue Bonds, Series 1992, 5.900%, 7/01/10 300 Hospital District No. One 6/04 at 101 AAA 327,708 of Maricopa County, Arizona, Hospital Facilities Refunding Bonds, Series 1992B, 6.250%, 6/01/10 3,195 The Industrial Development 7/10 at 102 Baa3 3,348,839 Authority of the County of Maricopa, Arizona, Education Revenue Bonds (Arizona Charter Schools Project I), Series 2000A, 6.625%, 7/01/20 1,500 The Industrial Development 6/07 at 102 A 1,588,185 Authority of the County of Maricopa, Arizona, Education Revenue Bonds (Horizon Community Learning Center Project), Series 2000, 6.350%, 6/01/26 1,000 Maricopa County Public 7/11 at 100 Aaa 1,067,090 Finance Authority, Arizona, Lease Revenue Bonds, Series 2001, 5.500%, 7/01/15 City of Peoria Improvement District No. 8801, Arizona, North Valley Power Center Improvement Bonds: 425 7.300%, 1/01/12 1/03 at 101 BBB+ 447,495 460 7.300%, 1/01/13 1/03 at 101 BBB+ 483,869 300 City of Phoenix, Arizona, 7/02 at 102 A+ 312,447 Junior Lien Street and Highway User Revenue Refunding Bonds, Series 1992, 6.250%, 7/01/11 Pinal County, Arizona, Certificates of Participation, Series 1994: 300 6.375%, 6/01/06 6/02 at 101 AA 309,525 200 6.500%, 6/01/09 6/02 at 101 AA 206,476 1,450 Puerto Rico Highway and 7/16 at 100 A 1,421,406 Transportation Authority, Highway Revenue Bonds, Series Y of 1996, 5.000%, 7/01/36 315 Scottsdale Mountain 7/03 at 102 A 326,283 Community Facilities District, Arizona, District General Obligation Bonds, Series 1993, 6.200%, 7/01/17 175 Business Development 7/02 at 102 AAA 182,261 Finance Corporation, Tucson, Arizona, Local Development Lease Revenue Refunding Bonds, Series 1992, 6.250%, 7/01/12 ------------------------------------------------------------------------------- Transportation - 0.5% 500 City of Phoenix, Arizona, 7/04 at 102 AAA 541,950 Airport Revenue Bonds, Series 1994D, 6.400%, 7/01/12 (Alternative Minimum Tax)
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Principal Optional Call Amount (000) Description Provisions* Ratings** Market Value ------------------------------------------------------------------------------- U.S. Guaranteed - 17.2% $ 300 Arizona Health Facilities 9/03 at 100 AAA $ 319,977 Authority, Hospital System Revenue Refunding Bonds (Phoenix Baptist Hospital and Medical Center, Inc. and Medical Environments, Inc.), Series 1992, 6.250%, 9/01/11 200 Arizona Municipal No Opt. Call AAA 243,370 Financing Program, Certificates of Participation, Series 20, 7.700%, 8/01/10 1,000 Hospital District No. One 6/06 at 101 Baa1*** 1,129,180 of Maricopa County, Arizona, General Obligation Bonds, Series 1996, 6.500%, 6/01/17 (Pre-refunded to 6/01/06) 305 Maricopa County, Arizona, No Opt. Call AAA 362,672 Hospital Revenue Bonds, Series 1980 (St. Luke's Hospital Medical Center), 8.750%, 2/01/10 2,775 The Industrial Development No Opt. Call AAA 3,401,040 Authority of the County of Maricopa, Arizona, Samaritan Health Services, Hospital System Revenue Refunding Bonds, Series 1990A, 7.000%, 12/01/16 12,050 The Industrial Development No Opt. Call AAA 5,919,442 Authority of the County of Maricopa, Arizona, Single Family Mortgage Revenue Bonds, Series 1984, 0.000%, 2/01/16 380 Alhambra Elementary School 7/04 at 102 AAA 424,304 District No. 68 of Maricopa County, Arizona, School Improvement and Refunding Bonds, Series 1994A, 6.750%, 7/01/14 (Pre-refunded to 7/01/04) 8,065 Tucson and Pima County No Opt. Call AAA 4,270,498 Industrial Development Authorities, Arizona, Single Family Mortgage Revenue Bonds, Series 1983A, 0.000%, 12/01/14 500 City of Tucson, Arizona, 7/04 at 101 AAA 547,450 General Obligation Bonds, Series 1984-G (1994), 6.250%, 7/01/18 (Pre- refunded to 7/01/04) 850 City of Tucson, Arizona, 7/04 at 100 AA*** 925,387 Certificates of Participation, Series 1994, 6.375%, 7/01/09 (Pre-refunded to 7/01/04) 75 Business Development 7/02 at 102 AAA 78,359 Finance Corporation, Tucson, Arizona, Local Development Lease Revenue Refunding Bonds, Series 1992, 6.250%, 7/01/12 (Pre-refunded to 7/01/02) ------------------------------------------------------------------------------- Utilities - 5.4% 5 Central Arizona Water 5/02 at 101 AA- 5,125 Conservation District, Contract Revenue Bonds (Central Arizona Project), Series B 1991, 6.500%, 11/01/11 2,000 Coconino County Pollution 10/06 at 102 BBB- 2,001,540 Control Corporation, Arizona, Pollution Control Revenue Bonds (Nevada Power Company Project), Series 1996, 6.375%, 10/01/36 (Alternative Minimum Tax) 500 Mohave County Industrial 2/02 at 100 BBB 500,080 Development Authority, Arizona, Industrial Development Revenue Bonds (Citizens Utilities Company Project), Series 1991B, 7.150%, 2/01/26 (Alternative Minimum Tax) 500 The Industrial Development 11/03 at 101 BBB 490,650 Authority of the County of Mohave, Arizona, Industrial Development Revenue Bonds, 1994 Series (Citizen Utilities Company Projects), 6.600%, 5/01/29 (Alternative Minimum Tax) 180 The Industrial Development 1/02 at 103 AAA 186,295 Authority of the County of Pima, Arizona, Industrial Development Lease Obligation Refunding Revenue Bonds, 1988 Series A (Irvington Project), 7.250%, 7/15/10 Salt River Project Agricultural Improvement and Power District, Arizona, Salt River Project Electric System Refunding Revenue Bonds, 1993 Series A: 500 5.750%, 1/01/10 No Opt. Call AA 551,390 1,000 5.500%, 1/01/19 1/03 at 100 AA 1,006,490 1,000 The Industrial Development 6/07 at 101 BBB 831,190 Authority of the County of Yavapai, Arizona, Industrial Development Revenue Bonds, 1998 Series (Citizens Utilities Company Project), 5.450%, 6/01/33 (Alternative Minimum Tax) ------------------------------------------------------------------------------- Water and Sewer - 5.2% City of Cottonwood, Arizona, Sewer Revenue Refunding Bonds, Series 1992: 500 6.900%, 7/01/03 7/02 at 101 BBB- 515,530 100 7.000%, 7/01/06 7/02 at 101 BBB- 103,322 100 7.000%, 7/01/07 7/02 at 101 BBB- 103,322 City of Phoenix Civic Improvement Corporation, Arizona, Junior Lien Wastewater System Revenue Bonds, Series 2000: 1,290 6.125%, 7/01/14 7/10 at 101 AAA 1,487,022 1,000 6.250%, 7/01/17 7/10 at 101 AAA 1,161,700 1,000 City of Phoenix Civic No Opt. Call AAA 1,072,470 Improvement Corporation, Arizona, Water System Junior Lien Revenue Refunding Bonds, Series 2001, 5.500%, 7/01/22
-------------------------------------------------------------------------------- 9 Portfolio of Investments (Unaudited) Nuveen Arizona Municipal Bond Fund (continued) November 30, 2001
Principal Optional Call Amount (000) Description Provisions* Ratings** Market Value ------------------------------------------------------------------------------ Water and Sewer (continued) $ 800 Sedona, Arizona, Sewer 7/04 at 101 A- $ 870,533 Revenue Refunding Bonds, Series 1992, 7.000%, 7/01/12 ------------------------------------------------------------------------------ $107,495 Total Investments (cost 101,290,301 $95,594,576) - 99.0% ------------------------------------------------------------------------------ ------------ Other Assets Less 1,019,146 Liabilities - 1.0% --------------------------------------------------------------------- Net Assets - 100% $102,309,447 ---------------------------------------------------------------------
* Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call pro- visions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which en- sures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. See accompanying notes to financial statements. ------------------------------------------------------------------------------- 10 Portfolio of Investments (Unaudited) Nuveen Colorado Municipal Bond Fund November 30, 2001
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ------------------------------------------------------------------------------- Consumer Staples - 2.3% $ 945 The Children's Trust Fund, 7/10 at 100 Aa3 $ 994,953 Puerto Rico, Tobacco Settlement Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 ------------------------------------------------------------------------------- Education and Civic Organizations - 5.0% 500 Colorado Educational and 12/10 at 100 AA 540,190 Cultural Facilities Authority, School Revenue Bonds (Ave Maria School Project), Series 2000, 6.125%, 12/01/25 1,500 Hyland Hills Park and 12/06 at 101 N/R 1,605,915 Recreation District, Adams County, Colorado, Special Revenue Refunding and Improvement Bonds, Series 1996A, 6.750%, 12/15/15 ------------------------------------------------------------------------------- Healthcare - 18.2% 1,000 Aspen Valley Hospital 4/10 at 100 N/R 1,061,090 District, Pitkin County, Colorado, Revenue Bonds, Series 2000, 6.800%, 10/15/24 750 Colorado Health Facilities 9/08 at 100 Baa1 688,350 Authority, Hospital Revenue Bonds (Parkview Medical Center, Inc. Project), Series 1998, 5.300%, 9/01/25 1,500 Colorado Health Facilities 9/09 at 101 N/R 1,390,605 Authority, Revenue Bonds (Steamboat Springs Health Care Association Project), Series 1999, 5.700%, 9/15/23 500 Colorado Health Facilities 11/11 at 101 BBB+ 526,875 Authority, Hospital Revenue Bonds (PorterCare Adventist Health System Project), Series 2001, 6.500%, 11/15/23 1,000 Colorado Health Facilities 1/12 at 100 BBB 990,780 Authority, Revenue Bonds (Vail Valley Medical Center Project), Series 2001, 5.800%, 1/15/27 1,750 City of Colorado Springs, 12/10 at 100 A- 1,841,368 Colorado, Hospital Revenue Bonds, Series 2000, 6.375%, 12/15/30 1,000 Denver Health and Hospital 12/11 at 100 BBB+ 1,057,110 Authority, Colorado, Health Care Revenue Bonds, Series 2001A, 6.250%, 12/01/16 250 University of Colorado 11/11 at 100 A3 246,265 Hospital Authority, Hospital Revenue Bonds, Series 2001A, 5.600%, 11/15/25 ------------------------------------------------------------------------------- Housing/Multifamily - 10.6% 1,265 Boulder County, Colorado, 6/09 at 100 N/R 1,191,035 Multifamily Housing Refunding and Improvement Revenue Bonds (Thistle Community Housing Project), Series 1999, 6.375%, 6/01/29 460 Colorado Housing and 4/05 at 102 AA+ 479,605 Finance Authority, Multifamily Housing Insured Mortgage Revenue Bonds, 1995 Series A, 6.650%, 10/01/28 (Alternative Minimum Tax) 1,800 City of Englewood, 12/06 at 102 BBB+ 1,862,982 Colorado, Multifamily Housing Revenue Refunding Bonds (Marks Apartments Project), Series 1996, 6.650%, 12/01/26 1,000 City of Lakewood, Colorado, 10/05 at 102 AAA 1,049,030 Multifamily Housing Mortgage Revenue Bonds (FHA-Insured Mortgage Loan - The Heights by Marston Lake Project), Series 1995, 6.650%, 10/01/25 (Alternative Minimum Tax) ------------------------------------------------------------------------------- Housing/Single Family - 9.7% 960 Colorado Housing and 10/09 at 105 Aa2 1,089,475 Finance Authority, Single Family Program Bonds (Senior), 1999 Series C-3, 6.750%, 10/01/21 1,510 Colorado Housing and 10/09 at 105 Aa2 1,759,830 Finance Authority, Single Family Program Bonds (Senior), 2000 Series A-2, 7.450%, 10/01/16 (Alternative Minimum Tax) 950 Colorado Housing and 4/10 at 105 AA 1,075,581 Finance Authority, Single Family Program Bonds (Senior), 2000 Series C-3, 7.150%, 10/01/30 80 Pueblo County, Colorado, 6/02 at 102 AA- 82,081 Single Family Mortgage Revenue Bonds (GNMA and FNMA Mortgage-Backed Securities Program), Series 1994A, 6.850%, 12/01/25 170 Pueblo County, Colorado, 11/04 at 102 AAA 177,891 Single Family Mortgage Revenue Refunding Bonds (GNMA and FNMA Mortgage- Backed Securities Program), Series 1994A, 7.050%, 11/01/27 ------------------------------------------------------------------------------- Long-Term Care - 8.8% 1,000 Colorado Health Facilities 1/07 at 101 N/R 1,000,460 Authority, First Mortgage Revenue Bonds (Christian Living Campus - Johnson Center Nursing Facility Refunding Project), Series 1997A, 7.050%, 1/01/19
-------------------------------------------------------------------------------- 11 Portfolio of Investments (Unaudited) Nuveen Colorado Municipal Bond Fund (continued) November 30, 2001
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ------------------------------------------------------------------------------- Long-Term Care (continued) $ 2,500 Colorado Health 9/09 at 102 Baa2 $ 2,494,850 Facilities Authority, Health Facilities Revenue Bonds (National Benevolent Association - Village at Skyline Project), Series 1999A, 6.375%, 9/01/29 300 Colorado Health 3/10 at 101 Baa2 313,659 Facilities Authority, Health Facilities Revenue Bonds (National Benevolent Association - Village at Skyline Project), Series 2000C, 7.000%, 3/01/24 ------------------------------------------------------------------------------- Tax Obligation/General - 5.5% 450 Cherry Creek Vista Park 10/02 at 100 N/R 457,430 and Recreation District, Colorado, General Obligation Refunding and Improvement Bonds, Series 1992B, 6.875%, 10/01/11 500 El Paso County School No Opt. Call Aa3 568,585 District No. 38., Lewis Palmer, Colorado, General Obligation Bonds, Series 2001 Refunding, 6.000%, 12/01/21 250 Pitkin County, Colorado, 12/04 at 102 A1 279,235 General Obligation Open Space Refunding and Improvement Bonds, Series 1994, 6.875%, 12/01/24 1,000 Commonwealth of Puerto No Opt. Call A 1,068,880 Rico, Public Improvement General Obligation Bonds of 2002, Series A, 5.500%, 7/01/29 ------------------------------------------------------------------------------- Tax Obligation/Limited - 16.3% 1,000 Colorado Department of 6/10 at 100 1/2 AAA 1,117,460 Transportation, Transportation Revenue Anticipation Notes, Series 2000, 6.000%, 6/15/15 1,250 Colorado Educational and 9/11 at 100 Baa3 1,295,888 Cultural Facilities Authority, Charter School Revenue Bonds (Bromley East Charter School Project), Series 2000A, 7.250%, 9/15/30 1,000 Colorado Educational and 12/10 at 101 BBB 1,056,140 Cultural Facilities Authority, Douglas County School District, Charter School Revenue Bonds (Academy Charter School Project), Series 2000, 6.875%, 12/15/20 1,000 Lakewood Public Building 12/10 at 100 AAA 1,029,660 Authority, City of Lakewood, Colorado, Certificates of Participation, Series 2000, 5.400%, 12/01/18 600 Logan County Justice 12/11 at 100 AAA 585,198 Center Finance Corporation, Logan County, Colorado, Certificates of Participation, Series 2001, 5.000%, 12/01/26 1,000 Puerto Rico Highway and 7/10 at 101 A 1,146,760 Transportation Authority, Transportation Revenue Bonds, Series B, 6.500%, 7/01/27 750 City of Woodland Park, 12/03 at 101 AA 804,000 Colorado, Limited Sales Tax Refunding Bonds, Series 1994B, 6.400%, 12/01/12 ------------------------------------------------------------------------------- Transportation - 13.1% 500 City and County of 10/02 at 102 BB- 332,410 Denver, Colorado, Special Facilities Airport Revenue Bonds (United Air Lines, Inc. Project), Series 1992A, 6.875%, 10/01/32 (Alternative Minimum Tax) 3,500 E-470 Public Highway 9/10 at 79 29/32 AAA 1,816,535 Authority, Colorado, Senior Revenue Bonds, 2000 Series B, 0.000%, 9/01/14 900 Eagle County Air 5/06 at 101 N/R 899,280 Terminal Corporation, Colorado, Airport Terminal Project Revenue Bonds, Series 1996, 7.500%, 5/01/21 (Alternative Minimum Tax) 1,270 Eagle County Air 5/11 at 101 N/R 1,215,466 Terminal Corporation, Colorado, Airport Terminal Revenue Bonds, Series 2001, 7.000%, 5/01/21 1,000 Northwest Parkway Public 6/11 at 102 AAA 1,068,320 Highway Authority, Colorado, Revenue Bonds (Senior), Series 2001A, 5.500%, 6/15/15 1,000 Northwest Parkway Public 6/11 at 49 5/16 AAA 286,850 Highway Authority, Colorado, Revenue Bonds (Senior), Series 2001B, 0.000%, 6/15/23 ------------------------------------------------------------------------------- U.S. Guaranteed - 8.8% 4,000 Arapahoe County, No Opt. Call AAA 2,709,560 Colorado, Single Family Mortgage Revenue Bonds, Series 1984A, 0.000%, 9/01/10 900 City of Colorado No Opt. Call AAA 1,080,522 Springs, Colorado, Utilities System Revenue Bonds, Series 1978B, 6.600%, 11/15/18
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Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ---------------------------------------------------------------------------- Water and Sewer - 0.3% $ 120 Colorado Water Resources 11/02 at 100 AAA $ 124,532 and Power Development Authority, Small Water Resources Revenue Bonds, 1992 Series A, 6.700%, 11/01/12 ---------------------------------------------------------------------------- $44,680 Total Investments (cost 42,462,691 $40,629,614) - 98.6% ---------------------------------------------------------------------------- ------------ Other Assets Less 589,329 Liabilities - 1.4% ------------------------------------------------------------------- Net Assets - 100% $43,052,020 -------------------------------------------------------------------
* Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call pro- visions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. N/R Investment is not rated. See accompanying notes to financial statements. ------------------------------------------------------------------------------- 13 Portfolio of Investments (Unaudited) Nuveen New Mexico Municipal Bond Fund November 30, 2001
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ------------------------------------------------------------------------------- Basic Materials - 1.8% $ 1,000 Lordsburg, New Mexico, 4/03 at 102 BBB- $ 988,070 Pollution Control Revenue Refunding Bonds (Phelps Dodge Corporation Project), Series 1993, 6.500%, 4/01/13 ------------------------------------------------------------------------------- Education and Civic Organizations - 14.9% 1,500 New Mexico Educational 9/11 at 100 A2 1,500,060 Assistance Foundation, Education Loan Bonds, First Subordinate Series 2001 B-1, 5.900%, 9/01/31 (WI, settling 12/03/01) 1,600 New Mexico Educational 4/02 at 102 AAA 1,645,968 Assistance Foundation, Student Loan Revenue Bonds, Series 1992A, 6.850%, 4/01/05 (Alternative Minimum Tax) 330 New Mexico Educational 12/02 at 101 Aaa 341,032 Assistance Foundation, Student Loan Revenue Bonds (Senior), 1992 Series One-A, 6.550%, 12/01/05 (Alternative Minimum Tax) 70 New Mexico Educational 12/02 at 101 A2 73,058 Assistance Foundation, Student Loan Revenue Bonds, Subordinate 1992 Series One-B, 6.850%, 12/01/05 (Alternative Minimum Tax) 555 New Mexico Educational No Opt. Call Aaa 564,574 Assistance Foundation, Student Loan Purchase Bonds (Senior), 1995 Series IV-A1, 6.500%, 3/01/04 (Alternative Minimum Tax) City of Santa Fe Educational Facilities, New Mexico, Revenue Improvement and Refunding Revenue Bonds (College of Santa Fe Project), Series 1997: 500 6.000%, 10/01/13 10/07 at 100 BBB- 517,965 500 5.875%, 10/01/21 10/07 at 100 BBB- 500,930 750 City of Santa Fe, New 10/07 at 100 BBB- 695,993 Mexico, Educational Facilities Improvement Revenue Bonds (College of Santa Fe Project), Series 1998A, 5.500%, 10/01/28 2,000 Regents of the University No Opt. Call AA 2,240,100 of New Mexico, System Revenue Refunding Bonds, Series 1992A, 6.000%, 6/01/21 ------------------------------------------------------------------------------- Healthcare - 10.7% New Mexico Hospital Equipment Loan Council, Hospital Revenue Bonds, Series 1998 (Memorial Medical Center, Inc. Project): 235 5.375%, 6/01/18 6/08 at 101 Baa3 203,134 3,000 5.500%, 6/01/28 6/08 at 101 Baa3 2,507,970 New Mexico Hospital Equipment Loan Council, Hospital Revenue Bonds, Presbyterian Healthcare Services, Series 2001A: 2,000 5.750%, 8/01/15 8/11 at 101 A1 2,108,320 1,000 5.500%, 8/01/30 8/11 at 101 A1 1,001,920 ------------------------------------------------------------------------------- Housing/Multifamily - 6.2% 1,945 Bernalillo County, New 6/09 at 101 N/R 1,733,909 Mexico, Multifamily Housing Refunding and Improvement Revenue Bonds, Series 1999 (El Centro Senior Housing Complex), 5.850%, 6/15/29 600 Bernalillo County, New 6/11 at 100 Aaa 599,466 Mexico, Multifamily Housing Revenue Bonds (Vista Montana Apartments Project), Series 2001A, 5.400%, 12/01/31 1,000 Las Cruces Housing 4/02 at 102 A2 1,026,080 Development Corporation, New Mexico, Multifamily Mortgage Revenue Refunding Bonds, Series 1993A, 6.400%, 10/01/19 ------------------------------------------------------------------------------- Housing/Single Family - 21.9% 1,705 New Mexico Mortgage Finance 7/06 at 102 AAA 1,763,345 Authority, Single Family Mortgage Program Bonds, 1996 Series D-1, 6.250%, 7/01/22 1,385 New Mexico Mortgage Finance 7/07 at 102 AAA 1,424,514 Authority, Single Family Mortgage Program Bonds, 1996 Series G-2, 6.200%, 7/01/28 (Alternative Minimum Tax) 1,000 New Mexico Mortgage Finance 7/07 at 102 AAA 1,044,360 Authority, Single Family Mortgage Bonds, 1996 Series B-2, 6.300%, 7/01/28 (Alternative Minimum Tax) 1,245 New Mexico Mortgage Finance 7/05 at 102 AAA 1,322,327 Authority, Single Family Mortgage Program Bonds, 1995 Series A, 6.650%, 7/01/26 (Alternative Minimum Tax) 335 New Mexico Mortgage Finance 7/02 at 102 AAA 343,385 Authority, Single Family Mortgage Purchase Refunding Senior Bonds, 1992 Series A-2, 6.900%, 7/01/24
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Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ------------------------------------------------------------------------------- Housing/Single Family (continued) $ 1,985 New Mexico Mortgage 11/09 at 101 1/2 AAA $ 2,244,062 Finance Authority, Single Family Mortgage Program Bonds, 2000 Series B, 7.000%, 9/01/31 (Alternative Minimum Tax) 2,285 New Mexico Mortgage 1/10 at 102 1/2 AAA 2,622,038 Finance Authority, Single Family Mortgage Program Bonds, 2000 Series C-2, 6.950%, 9/01/31 (Alternative Minimum Tax) 1,060 New Mexico Mortgage 9/09 at 100 A+ 1,101,107 Finance Authority, General Revenue Office Building Bonds, Series 2000, 6.000%, 9/01/26 ------------------------------------------------------------------------------- Long-Term Care - 1.0% 500 Las Cruces, New Mexico, 12/02 at 102 AAA 524,955 Health Facilities Revenue Refunding Bonds, Series 1992 (The Evangelical Lutheran Good Samaritan Society Project), 6.450%, 12/01/17 10 City of Socorro, New 5/04 at 102 AAA 10,817 Mexico, Health Facilities Refunding Revenue Bonds (The Evangelical Lutheran Good Samaritan Society Project), Series 1994, 6.000%, 5/01/08 ------------------------------------------------------------------------------- Tax Obligation/General - 2.9% Grants/Cibola County School District 1, Cibola County, New Mexico, General Obligation School Building Bonds, Series 1994: 480 6.250%, 5/01/08 5/04 at 100 Baa2 509,088 510 6.250%, 5/01/09 5/04 at 100 Baa2 540,299 500 Commonwealth of Puerto 7/11 at 100 A 510,680 Rico, Public Improvement General Obligation Bonds of 2002, Series A, 5.375%, 7/01/28 ------------------------------------------------------------------------------- Tax Obligation/Limited - 21.1% 1,880 City of Albuquerque, New No Opt. Call AAA 1,207,731 Mexico, Gross Receipts/Lodgers Tax Refunding and Improvement Revenue Bonds, Series 1991B, 0.000%, 7/01/11 2,000 Bernalillo County, New 10/09 at 100 AA 2,014,540 Mexico, Gross Receipts Tax Revenue Bonds, Series 1999, 5.250%, 10/01/26 250 Las Cruces, New Mexico, 12/02 at 101 A 261,355 Gross Receipts Tax Revenue Refunding Bonds, Series 1992, 6.250%, 12/01/05 2,130 Puerto Rico Highway and 7/16 at 100 A 2,216,372 Transportation Authority, Highway Revenue Bonds, Series Y of 1996, 5.500%, 7/01/36 1,000 Puerto Rico Highway and 7/10 at 101 A 1,146,760 Transportation Authority, Transportation Revenue Bonds, Series B, 6.500%, 7/01/27 4,000 Santa Fe County, New No Opt. Call AAA 4,583,920 Mexico, Correctional System Revenue Bonds, Series 1997, 6.000%, 2/01/27 ------------------------------------------------------------------------------- Transportation - 1.5% 1,000 Puerto Rico Ports 6/06 at 102 BB 825,210 Authority, Special Facilities Revenue Bonds, 1996 Series A (American Airlines, Inc. Project), 6.250%, 6/01/26 (Alternative Minimum Tax) ------------------------------------------------------------------------------- U.S. Guaranteed - 5.2% 1,870 City of Albuquerque, New No Opt. Call AAA 1,214,902 Mexico, Gross Receipts/Lodgers Tax Refunding and Improvement Revenue Bonds, Series 1991B, 0.000%, 7/01/11 90 Las Cruces, New Mexico, 7/02 at 102 A1*** 94,199 Joint Utility Refunding and Improvement Revenue Bonds, Series 1992, 6.250%, 7/01/12 375 Sandoval County, New 11/02 at 102 Baa1*** 398,854 Mexico, Gross Receipts Tax Revenue Refunding Bonds, Series 1992, 6.900%, 11/01/12 (Pre-refunded to 11/01/02) 130 Sandoval County, New 12/02 at 102 Baa1*** 138,199 Mexico, Gross Receipts Tax Revenue Refunding Bonds, Series 1992A, 6.500%, 12/01/06 (Pre- refunded to 12/01/02) 500 County of Sandoval, New 11/05 at 101 N/R*** 575,510 Mexico, Gross Receipts Tax Revenue Bonds, Subordinate Series 1994, 7.150%, 11/01/10 (Pre-refunded to 11/01/05) 327 Santa Fe County, New No Opt. Call Aaa 412,121 Mexico, Office and Training Facilities Project Revenue Bonds, Series 1990, 9.000%, 7/01/07
-------------------------------------------------------------------------------- 15 Portfolio of Investments (Unaudited) Nuveen New Mexico Municipal Bond Fund (continued) November 30, 2001
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ------------------------------------------------------------------------------- Utilities - 9.6% $ 875 City of Farmington, New 12/02 at 102 AAA $ 920,104 Mexico, Pollution Control Revenue Refunding Bonds, 1992 Series A (Public Service Company of New Mexico - San Juan and Four Corners Projects), 6.375%, 12/15/22 2,000 City of Farmington, New 10/09 at 102 BBB- 2,055,080 Mexico, Pollution Control Revenue Bonds, Public Service Company of New Mexico, 1999 Series A, 6.600%, 10/01/29 (Alternative Minimum Tax) 1,000 City of Las Cruces South 6/05 at 100 A3 1,030,960 Central Solid Waste Authority, New Mexico, Environmental Services Gross Receipts Tax/Project Revenue Bonds, Series 1995, 6.000%, 6/01/16 1,000 Incorporated County of Los 7/04 at 102 AAA 1,076,060 Alamos New Mexico, Utility System Revenue Bonds, Series 1994A, 6.000%, 7/01/15 135 Puerto Rico Electric Power 7/10 at 101 AAA 137,590 Authority, Power Revenue Bonds, Series HH, 5.250%, 7/01/29 ------------------------------------------------------------------------------- Water and Sewer - 1.5% 1,000 City of Albuquerque, New No Opt. Call AAA 798,460 Mexico, Joint Water and Sewer System Revenue Bonds, Series 1990A, 0.000%, 7/01/07 ------------------------------------------------------------------------------- $53,147 Total Investments (cost 53,317,453 $51,207,175) - 98.3% ------------------------------------------------------------------------------- ------------ Other Assets Less 921,361 Liabilities - 1.7% ---------------------------------------------------------------------- Net Assets - 100% $54,238,814 ----------------------------------------------------------------------
* Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call pro- visions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which en- sures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements. ------------------------------------------------------------------------------- 16 Statement of Net Assets (Unaudited) November 30, 2001
Arizona Colorado New Mexico ------------------------------------------------------------------------------- Assets Investments in municipal securities, at market value $101,290,301 $42,462,691 $53,317,453 Receivables: Interest 1,657,306 710,438 988,096 Investments sold 1,485,071 5,000 1,842,775 Shares sold 31,391 27,497 27,248 Other assets 36 -- 49 ------------------------------------------------------------------------------- Total assets 104,464,105 43,205,626 56,175,621 ------------------------------------------------------------------------------- Liabilities Cash overdraft 1,818,641 5,486 179,832 Payables: Investments purchased -- -- 1,500,327 Shares redeemed 2,500 -- 85,513 Accrued expenses: Management fees 47,500 19,573 24,685 12b-1 distribution and service fees 19,942 11,840 12,882 Other 87,981 49,978 49,450 Dividends payable 178,094 66,729 84,118 ------------------------------------------------------------------------------- Total liabilities 2,154,658 153,606 1,936,807 ------------------------------------------------------------------------------- Net assets $102,309,447 $43,052,020 $54,238,814 ------------------------------------------------------------------------------- Class A Shares Net assets $ 70,149,017 $32,976,427 $46,494,577 Shares outstanding 6,342,025 3,223,231 4,502,594 Net asset value and redemption price per share $ 11.06 $ 10.23 $ 10.33 Offering price per share (net asset value per share plus maximum sales charge of 4.20% of offering price) $ 11.54 $ 10.68 $ 10.78 ------------------------------------------------------------------------------- Class B Shares Net assets $ 5,562,580 $ 6,135,982 $ 4,265,051 Shares outstanding 503,644 598,988 413,041 Net asset value, offering and redemption price per share $ 11.04 $ 10.24 $ 10.33 ------------------------------------------------------------------------------- Class C Shares Net assets $ 6,388,150 $ 3,146,009 $ 2,942,260 Shares outstanding 578,122 307,722 284,975 Net asset value, offering and redemption price per share $ 11.05 $ 10.22 $ 10.32 ------------------------------------------------------------------------------- Class R Shares Net assets $ 20,209,700 $ 793,602 $ 536,926 Shares outstanding 1,828,611 77,623 51,852 Net asset value, offering and redemption price per share $ 11.05 $ 10.22 $ 10.35 -------------------------------------------------------------------------------
See accompanying notes to financial statements. ------------------------------------------------------------------------------- 17 Statement of Operations (Unaudited) Six Months Ended November 30, 2001
Arizona Colorado New Mexico ------------------------------------------------------------------------------- Investment Income $2,977,798 $1,286,142 $1,549,794 ------------------------------------------------------------------------------- Expenses Management fees 285,460 117,008 149,226 12b-1 service fees - Class A 72,514 33,035 46,951 12b-1 distribution and service fees - Class B 24,699 27,460 19,388 12b-1 distribution and service fees - Class C 22,275 11,073 10,109 Shareholders' servicing agent fees and expenses 39,984 16,206 17,161 Custodian's fees and expenses 29,602 22,471 22,154 Trustees' fees and expenses 2,133 627 752 Professional fees 5,376 5,641 5,120 Shareholders' reports - printing and mailing expenses 15,985 7,740 8,539 Federal and state registration fees 6,269 2,507 3,559 Other expenses 2,394 1,081 1,419 ------------------------------------------------------------------------------- Total expenses before custodian fee credit 506,691 244,849 284,378 Custodian fee credit (5,025) (4,033) (2,865) ------------------------------------------------------------------------------- Net expenses 501,666 240,816 281,513 ------------------------------------------------------------------------------- Net investment income 2,476,132 1,045,326 1,268,281 ------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) from Investments Net realized gain (loss) from investment transactions 338,324 (95,434) 241,712 Net change in unrealized appreciation or depreciation of investments 1,705,943 958,635 216,491 ------------------------------------------------------------------------------- Net gain from investments 2,044,267 863,201 458,203 ------------------------------------------------------------------------------- Net increase in net assets from operations $4,520,399 $1,908,527 $1,726,484 -------------------------------------------------------------------------------
See accompanying notes to financial statements. ------------------------------------------------------------------------------- 18 Statement of Changes in Net Assets (Unaudited)
Arizona Colorado New Mexico ------------------------------ ----------------------------- ----------------------------- Six Months Ended Year Ended Six Months Ended Year Ended Six Months Ended Year Ended 11/30/01 5/31/01 11/30/01 5/31/01 11/30/01 5/31/01 ----------------------------------------------------------------------------------------------------------------------- Operations Net investment income $ 2,476,132 $ 4,961,575 $ 1,045,326 $ 2,149,695 $ 1,268,281 $ 2,514,200 Net realized gain (loss) from investment transactions 338,324 401,786 (95,434) 461,967 241,712 (14,342) Net change in unrealized appreciation or depreciation of investments 1,705,943 5,051,455 958,635 1,688,898 216,491 2,954,115 ----------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations 4,520,399 10,414,816 1,908,527 4,300,560 1,726,484 5,453,973 ----------------------------------------------------------------------------------------------------------------------- Distributions to Shareholders From and in excess of net investment income: Class A (1,740,297) (3,412,041) (836,635) (1,681,771) (1,095,865) (2,211,944) Class B (106,421) (167,942) (125,911) (209,253) (78,937) (121,396) Class C (125,966) (251,977) (67,363) (133,645) (55,091) (99,084) Class R (504,325) (992,302) (20,578) (62,752) (12,942) (24,240) ----------------------------------------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (2,477,009) (4,824,262) (1,050,487) (2,087,421) (1,242,835) (2,456,664) ----------------------------------------------------------------------------------------------------------------------- Fund Share Transactions Net proceeds from sale of shares 6,511,189 12,078,773 2,933,282 5,165,375 4,299,983 4,852,934 Net proceeds from shares issued to shareholders due to reinvestment of distributions 1,022,963 1,970,606 402,659 783,727 483,797 940,007 ----------------------------------------------------------------------------------------------------------------------- 7,534,152 14,049,379 3,335,941 5,949,102 4,783,780 5,792,941 Cost of shares redeemed (7,553,347) (16,912,857) (2,106,351) (8,633,180) (3,695,601) (7,389,863) ----------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets from Fund share transactions (19,195) (2,863,478) 1,229,590 (2,684,078) 1,088,179 (1,596,922) ----------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets 2,024,195 2,727,076 2,087,630 (470,939) 1,571,828 1,400,387 Net assets at the beginning of period 100,285,252 97,558,176 40,964,390 41,435,329 52,666,986 51,266,599 ----------------------------------------------------------------------------------------------------------------------- Net assets at the end of period $ 102,309,447 $100,285,252 $43,052,020 $40,964,390 $54,238,814 $52,666,986 ----------------------------------------------------------------------------------------------------------------------- Undistributed (Over- distribution of) net investment income at the end of period $ 104,318 $ 100,797 $ 16,447 $ 21,608 $ 16,107 $ (9,657) -----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. ------------------------------------------------------------------------------- 19 Notes to Financial Statements (Unaudited) 1. General Information and Significant Accounting Policies The Nuveen Multistate Trust I (the "Trust") is an open-end investment company registered under the Investment Company Act of 1940, as amended. The Trust comprises the Nuveen Arizona Municipal Bond Fund ("Arizona"), the Nuveen Colo- rado Municipal Bond Fund ("Colorado") and the Nuveen New Mexico Municipal Bond Fund ("New Mexico") (collectively, the "Funds"), among others. The Trust was organized as a Massachusetts business trust on July 1, 1996. The Funds seek to provide high tax-free income and preservation of capital through investments in diversified portfolios of quality municipal bonds. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with ac- counting principles generally accepted in the United States. Securities 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 Trustees. When price quotes are not readily available (which is usually the case for municipal se- curities), the pricing service establishes fair market value based on yields or prices of municipal bonds of comparable quality, type of issue, coupon, ma- turity and rating, indications of value from securities dealers and general market conditions. If it is determined that market prices for a security are unavailable or inappropriate, the Board of Trustees of the Funds may establish a fair value for the security. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are valued at amortized cost, which approximates market value. Securities Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined on the specific identification method. Securities purchased or sold on a when-issued or delayed delivery ba- sis may have extended settlement periods. Any securities so purchased are sub- ject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets in a separate account with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At November 30, 2001, New Mexico had an outstanding when-issued purchase commitment of $1,500,327. There were no such outstanding purchase commitments in either of the other Funds. Investment Income Interest income is determined on the basis of interest accrued, adjusted for amortization of premiums and accretion of discounts on long-term debt securi- ties for financial reporting purposes. Dividends and Distributions to Shareholders Tax-exempt net investment income is declared monthly as a dividend and payment is made or reinvestment is credited to shareholder accounts on the first busi- ness day after month-end. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to shareholders of tax-exempt net investment income, net real- ized capital gains and/or market discount 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 accounting principles generally accepted in the United States. Accordingly, temporary over-distribu- tions as a result of these differences may occur and will be classified as ei- ther distributions in excess of net investment income, distributions in excess of net realized gains and/or distributions in excess of net ordinary taxable income from investment transactions, where applicable. Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to comply with the requirements of the Internal Revenue Code applica- ble to regulated investment companies and to distribute all of its net invest- ment income to its shareholders. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions which will ena- ble interest from municipal securities, which is exempt from regular federal and designated state income taxes, to retain such tax-exempt status when dis- tributed to shareholders of the Funds. ------------------------------------------------------------------------------- 20 Flexible Sales Charge Program Each Fund offers Class A, B, C and R Shares. Class A Shares are sold with a sales charge and incur an annual 12b-1 service fee. Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge ("CDSC") if redeemed within 18 months of purchase. Class B Shares are sold without a sales charge but incur annual 12b-1 distribution and service fees. An investor pur- chasing Class B Shares agrees to pay a CDSC of up to 5% depending upon the length of time the shares are held by the investor (CDSC is reduced to 0% at the end of six years). Class B Shares convert to Class A Shares eight years after purchase. Class C Shares are sold without a sales charge but incur an- nual 12b-1 distribution and service fees. An investor purchasing Class C Shares agrees to pay a CDSC of 1% if Class C Shares are redeemed within one year of purchase. Class R Shares are not subject to any sales charge or 12b-1 distribution or service fees. Class R Shares are available only under limited circumstances. Derivative Financial Instruments The Funds may invest in certain derivative financial instruments including futures, forward, swap and option contracts, and other financial instruments with similar characteristics. Although the Funds are authorized to invest in such financial instruments, and may do so in the future, they did not make any such investments during the six months ended November 30, 2001. Expense Allocation Expenses of the Funds that are not directly attributable to a specific class of shares are prorated among the classes based on the relative net assets of each class. Expenses directly attributable to a class of shares, which pres- ently only include 12b-1 distribution and service fees, are recorded to the specific class. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight in- vestments. Use of Estimates The preparation of financial statements in conformity with accounting princi- ples generally accepted in the United States requires management to make esti- mates and assumptions that affect the reported amounts of assets and liabili- ties at the date of the financial statements and the reported amounts of in- creases and decreases in net assets from operations during the reporting peri- od. Actual results may differ from those estimates. Change in Accounting Policy As required, effective June 1, 2001, the Funds have adopted the provisions of the new AICPA Audit and Accounting Guide for Investment Companies and began accreting taxable market discount on debt securities. Prior to June 1, 2001, the Funds did not accrete taxable market discounts on debt securities until they were sold. The cumulative effect of this accounting change had no impact on the total net assets or the net asset value of the Funds, but resulted in an increase in the cost of securities and a corresponding decrease in unrealized appreciation, based on securities held by the Funds on June 1, 2001 as follows:
Arizona Colorado New Mexico -------------------------------- $4,398 $-- $318 --------------------------------
The effect of this change for the six months ended November 30, 2001, was to increase net investment income with a corresponding decrease in net unrealized appreciation as follows:
Arizona Colorado New Mexico -------------------------------- $1,589 $-- $780 --------------------------------
The Statement of Changes in Net Assets and Financial Highlights for the prior periods have not been restated to reflect this change in presentation. ------------------------------------------------------------------------------- 21 Notes to Financial Statements (Unaudited) (continued) 2. Fund Shares Transactions in Fund shares were as follows:
Arizona ----------------------------------------------- Six Months Ended Year Ended 11/30/01 5/31/01 --------------------- ------------------------ Shares Amount Shares Amount ------------------------------------------------------------------------------- Shares sold: Class A 258,746 $ 2,855,978 851,247 $ 9,258,306 Class B 143,273 1,580,633 154,599 1,645,642 Class C 97,670 1,086,219 65,162 696,706 Class R 89,043 988,359 44,551 478,119 Shares issued to shareholders due to reinvestment of distributions: Class A 56,741 627,262 111,799 1,196,824 Class B 2,843 31,420 4,830 51,735 Class C 5,411 59,698 11,847 126,918 Class R 27,559 304,583 55,615 595,129 ------------------------------------------------------------------------------- 681,286 7,534,152 1,299,650 14,049,379 ------------------------------------------------------------------------------- Shares redeemed: Class A (489,734) (5,422,252) (1,237,376) (13,278,899) Class B (53,165) (589,270) (108,496) (1,149,297) Class C (61,304) (677,196) (57,595) (617,453) Class R (77,680) (864,629) (174,095) (1,867,208) ------------------------------------------------------------------------------- (681,883) (7,553,347) (1,577,562) (16,912,857) ------------------------------------------------------------------------------- Net increase (decrease) (597) $ (19,195) (277,912) $ (2,863,478) -------------------------------------------------------------------------------
Colorado ---------------------------------------------- Six Months Ended Year Ended 11/30/01 5/31/01 ---------------------- ---------------------- Shares Amount Shares Amount ------------------------------------------------------------------------------ Shares sold: Class A 139,273 $ 1,422,214 259,908 $ 2,581,180 Class B 103,415 1,056,099 124,036 1,228,779 Class C 43,102 440,644 85,046 849,243 Class R 1,385 14,325 51,491 506,173 Shares issued to shareholders due to reinvestment of distributions: Class A 28,281 289,255 58,094 573,931 Class B 6,601 67,686 10,590 104,892 Class C 2,780 28,432 4,905 48,462 Class R 1,690 17,286 5,712 56,442 ------------------------------------------------------------------------------ 326,527 3,335,941 599,782 5,949,102 ------------------------------------------------------------------------------ Shares redeemed: Class A (168,612) (1,720,345) (509,355) (5,041,734) Class B (958) (9,922) (121,110) (1,196,611) Class C (37,278) (376,084) (118,685) (1,169,951) Class R -- -- (123,978) (1,224,884) ------------------------------------------------------------------------------ (206,848) (2,106,351) (873,128) (8,633,180) ------------------------------------------------------------------------------ Net increase (decrease) 119,679 $ 1,229,590 (273,346) $(2,684,078) ------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 22
New Mexico --------------------------------------------- Six Months Ended Year Ended 11/30/01 5/31/01 ---------------------- --------------------- Shares Amount Shares Amount ----------------------------------------------------------------------------- Shares sold: Class A 258,056 $ 2,673,260 366,189 $ 3,710,657 Class B 96,125 998,297 78,649 797,573 Class C 60,653 628,426 28,338 284,376 Class R -- -- 5,969 60,328 Shares issued to shareholders due to reinvestment of distributions: Class A 40,331 418,608 81,990 824,400 Class B 3,559 36,949 6,070 61,052 Class C 1,533 15,907 3,152 31,679 Class R 1,185 12,333 2,268 22,876 ----------------------------------------------------------------------------- 461,442 4,783,780 572,625 5,792,941 ----------------------------------------------------------------------------- Shares redeemed: Class A (325,341) (3,388,018) (660,880) (6,634,039) Class B (18,185) (188,960) (34,532) (350,873) Class C (11,395) (118,623) (37,770) (379,970) Class R -- -- (2,442) (24,981) ----------------------------------------------------------------------------- (354,921) (3,695,601) (735,624) (7,389,863) ----------------------------------------------------------------------------- Net increase (decrease) 106,521 $ 1,088,179 (162,999) $(1,596,922) -----------------------------------------------------------------------------
3. Distributions to Shareholders The Funds declared dividend distributions from their tax-exempt net investment income which were paid on December 26, 2001, to shareholders of record on De- cember 7, 2001, as follows:
Arizona Colorado New Mexico ------------------------------------------------ Dividend per share: Class A $.0445 $.0435 $.0405 Class B .0375 .0375 .0340 Class C .0395 .0390 .0355 Class R .0465 .0455 .0420 ------------------------------------------------
Arizona also declared a capital gains distribution of $.0453 per share which was paid on December 5, 2001, to shareholders of record on December 3, 2001. 4. Securities Transactions Purchases and sales (including maturities) of investments in long-term munici- pal securities and short-term municipal securities for the six months ended No- vember 30, 2001, were as follows:
Arizona Colorado New Mexico ------------------------------------------------------------------------------- Purchases: Long-term municipal securities $10,119,270 $8,254,805 $7,147,400 Short-term municipal securities 2,500,000 -- -- Sales and maturities: Long-term municipal securities 7,878,549 6,613,500 6,207,048 Short-term municipal securities 2,500,000 -- -- ------------------------------------------------------------------------------- At November 30, 2001, the cost of investments owned for federal income tax pur- poses were as follows: Arizona Colorado New Mexico ------------------------------------------------------------------------------- $95,588,589 $40,629,614 $51,209,361 -------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 23 Notes to Financial Statements (Unaudited) (continued) At May 31, 2001, the Funds' last fiscal year end, the following Funds had un- used capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
Colorado New Mexico ------------------------------------- Expiration Year: 2003 $ -- $ 296,633 2004 -- 290,586 2005 -- -- 2006 -- -- 2007 -- -- 2008 470,202 411,479 2009 374,551 338,997 ------------------------------------- Total $844,753 $1,337,695 -------------------------------------
5. Unrealized Appreciation (Depreciation) Gross unrealized appreciation and gross unrealized depreciation of investments for federal income tax purposes at November 30, 2001, were as follows:
Arizona Colorado New Mexico ---------------------------------------------------------------- Gross unrealized: appreciation $6,438,862 $2,213,045 $2,918,703 depreciation (737,150) (379,968) (810,611) ---------------------------------------------------------------- Net unrealized appreciation $5,701,712 $1,833,077 $2,108,092 ----------------------------------------------------------------
6. Management Fee and Other Transactions with Affiliates Under the Trust's investment management agreement with Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund pays an annual management fee, payable monthly, at the rates set forth below which are based upon the average daily net assets of each Fund:
Average Daily Net Assets Management Fee ----------------------------------------------- For the first $125 million .5500 of 1% For the next $125 million .5375 of 1 For the next $250 million .5250 of 1 For the next $500 million .5125 of 1 For the next $1 billion .5000 of 1 For the next $3 billion .4750 of 1 For net assets over $5 billion .4500 of 1 -----------------------------------------------
The management fee compensates the Adviser for overall investment advisory and administrative services, and general office facilities. The Trust pays no com- pensation directly to those of its Trustees who are affiliated with the Ad- viser or to its officers, all of whom receive remuneration for their services to the Trust from the Adviser or its affiliates. The Adviser may voluntarily reimburse expenses from time to time, which may be terminated at any time at its discretion. During the six months ended November 30, 2001, Nuveen Investments (the "Dis- tributor"), a wholly owned subsidiary of The John Nuveen Company, collected sales charges on purchases of Class A Shares, the majority of which were paid out as concessions to authorized dealers as follows:
Arizona Colorado New Mexico ------------------------------------------------------- Sales charges collected $47,024 $20,739 $38,810 Paid to authorized dealers 40,290 20,319 33,205 -------------------------------------------------------
The Distributor also received 12b-1 service fees on Class A Shares, substan- tially all of which were paid to compensate authorized dealers for providing services to shareholders relating to their investments. ------------------------------------------------------------------------------- 24 During the six months ended November 30, 2001, the Distributor compensated au- thorized dealers directly with commission advances at the time of purchase as follows:
Arizona Colorado New Mexico ------------------------------------------------ Commission advances $65,966 $47,754 $47,123 ------------------------------------------------
To compensate for commissions advanced to authorized dealers, all 12b-1 serv- ice fees collected on Class B Shares during the first year following a pur- chase, all 12b-1 distribution fees collected on Class B Shares, and all 12b-1 service and distribution fees collected on Class C Shares during the first year following a purchase are retained by the Distributor. During the six months ended November 30, 2001, the Distributor retained such 12b-1 fees as follows:
Arizona Colorado New Mexico ------------------------------------------------ 12b-1 fees retained $24,216 $26,724 $18,312 ------------------------------------------------
The remaining 12b-1 fees charged to the Funds were paid to compensate autho- rized dealers for providing services to shareholders relating to their invest- ments. The Distributor also collected and retained CDSC on share redemptions during the six months ended November 30, 2001, as follows:
Arizona Colorado New Mexico ------------------------------------------ CDSC retained $11,908 $271 $5,207 ------------------------------------------
7. Composition of Net Assets At November 30, 2001, the Funds had an unlimited number of $.01 par value shares authorized. Net assets consisted of:
Arizona Colorado New Mexico ---------------------------------------------------------------------------- Capital paid-in $ 95,917,070 $42,142,683 $53,211,697 Undistributed net investment income 104,318 16,447 16,107 Accumulated net realized gain (loss) from investment transactions 592,334 (940,187) (1,099,268) Net unrealized appreciation of investments 5,695,725 1,833,077 2,110,278 ---------------------------------------------------------------------------- Net assets $102,309,447 $43,052,020 $54,238,814 ----------------------------------------------------------------------------
------------------------------------------------------------------------------- 25 Financial Highlights (Unaudited) Selected data for a share outstanding throughout each period:
Class (Inception Date) Investment Operations Less Distributions ------------------------- ----------------------- ARIZONA From Net and in Realized/ Excess Net Unrealized of Net Ending Beginning Invest- Invest- Invest- Net Year Ended Net Asset ment ment Gain ment Capital Asset Total May 31, Value Income (Loss) Total Income Gains Total Value Return (a) ------------------------------------------------------------------------------------------------ Class A (10/86) 2002(e) $10.84 $.27 $ .22 $ .49 $(.27) $ -- $(.27) $11.06 4.50% 2001 10.24 .54 .58 1.12 (.52) -- (.52) 10.84 11.12 2000 11.25 .52 (.94) (.42) (.52) (.07) (.59) 10.24 (3.75) 1999 11.40 .53 (.09) .44 (.54) (.05) (.59) 11.25 3.87 1998 10.94 .55 .48 1.03 (.55) (.02) (.57) 11.40 9.56 1997 10.73 .56 .27 .83 (.56) (.06) (.62) 10.94 7.85 Class B (2/97) 2002(e) 10.83 .22 .22 .44 (.23) -- (.23) 11.04 4.14 2001 10.23 .46 .59 1.05 (.45) -- (.45) 10.83 10.33 2000 11.24 .44 (.94) (.50) (.44) (.07) (.51) 10.23 (4.48) 1999 11.39 .45 (.10) .35 (.45) (.05) (.50) 11.24 3.12 1998 10.94 .47 .47 .94 (.47) (.02) (.49) 11.39 8.67 1997(d) 10.92 .16 .02 .18 (.16) -- (.16) 10.94 1.64 Class C (2/94) 2002(e) 10.83 .24 .22 .46 (.24) -- (.24) 11.05 4.22 2001 10.23 .48 .59 1.07 (.47) -- (.47) 10.83 10.56 2000 11.24 .46 (.94) (.48) (.46) (.07) (.53) 10.23 (4.28) 1999 11.39 .47 (.09) .38 (.48) (.05) (.53) 11.24 3.33 1998 10.94 .49 .47 .96 (.49) (.02) (.51) 11.39 8.89 1997 10.73 .50 .27 .77 (.50) (.06) (.56) 10.94 7.28 Class R (2/97) 2002(e) 10.83 .28 .22 .50 (.28) -- (.28) 11.05 4.62 2001 10.24 .56 .58 1.14 (.55) -- (.55) 10.83 11.27 2000 11.25 .54 (.94) (.40) (.54) (.07) (.61) 10.24 (3.53) 1999 11.40 .56 (.10) .46 (.56) (.05) (.61) 11.25 4.09 1998 10.94 .57 .48 1.05 (.57) (.02) (.59) 11.40 9.79 1997(d) 10.92 .19 .02 .21 (.19) -- (.19) 10.94 1.96 --------------------------------------------------------------------------------------------------------
Class (Inception Date) Ratios/Supplemental Data ------------------------------------------------------------------------- Before Credit/ After After Credit/ Reimbursement Reimbursement(b) Reimbursement(c) ARIZONA -------------------- -------------------- -------------------- Ratio Ratio Ratio of Net of Net of Net Invest- Invest- Invest- Ratio of ment Ratio of ment Ratio of ment Expenses Income Expenses Income Expenses Income Ending to to to to to to Net Average Average Average Average Average Average Portfolio Year Ended Assets Net Net Net Net Net Net Turnover May 31, (000) Assets Assets Assets Assets Assets Assets Rate ----------------------------------------------------------------------------------------------------- Class A (10/86) 2002(e) $70,149 .95%* 4.79%* .95%* 4.79%* .94%* 4.80%* 8% 2001 70,642 .95 5.02 .95 5.02 .94 5.03 21 2000 69,512 1.10 4.85 1.06 4.89 1.06 4.90 41 1999 86,452 .93 4.57 .84 4.67 .84 4.67 16 1998 85,922 .93 4.77 .83 4.87 .83 4.87 16 1997 82,567 1.05 4.91 .83 5.13 .83 5.13 25 Class B (2/97) 2002(e) 5,563 1.70* 4.04* 1.70* 4.04* 1.69* 4.05* 8 2001 4,447 1.70 4.27 1.70 4.27 1.69 4.28 21 2000 3,680 1.85 4.11 1.82 4.14 1.81 4.15 41 1999 4,180 1.69 3.84 1.58 3.95 1.58 3.95 16 1998 1,620 1.68 3.98 1.51 4.15 1.51 4.15 16 1997(d) 347 1.67* 4.38* 1.62* 4.43* 1.62* 4.43* 25 Class C (2/94) 2002(e) 6,388 1.50* 4.24* 1.50* 4.24* 1.49* 4.25* 8 2001 5,809 1.50 4.47 1.50 4.47 1.49 4.48 21 2000 5,290 1.65 4.31 1.61 4.34 1.60 4.35 41 1999 6,426 1.48 4.03 1.39 4.12 1.39 4.12 16 1998 6,328 1.48 4.20 1.35 4.33 1.35 4.33 16 1997 3,189 1.59 4.37 1.38 4.58 1.38 4.58 25 Class R (2/97) 2002(e) 20,210 .75* 4.99* .75* 4.99* .74* 5.00* 8 2001 19,388 .75 5.22 .75 5.22 .74 5.23 21 2000 19,076 .91 5.06 .87 5.09 .87 5.10 41 1999 21,534 .73 4.78 .64 4.87 .63 4.87 16 1998 20,504 .73 4.97 .63 5.07 .63 5.07 16 1997(d) 19,031 .73* 5.32* .67* 5.38* .67* 5.38* 25 -----------------------------------------------------------------------------------------------------
* Annualized. (a) Total returns are calculated on net asset value without any sales charge and not annualized. (b) After expense reimbursement from the investment adviser, where applicable. (c) After custodian fee credit and expense reimbursement, where applicable. (d) From commencement of class operations as noted. (e) For the six months ended November 30, 2001. See accompanying notes to financial statements. ----- 26 Selected data for a share outstanding throughout each period:
Class (Inception Date) Investment Operations Less Distributions ------------------------- ----------------------- COLORADO From Net and in Realized/ Excess Beginning Net Unrealized of Net Ending Net Invest- Invest- Invest- Net Year Ended May Asset ment ment Gain ment Capital Asset Total 31, Value Income (Loss) Total Income Gains Total Value Return(a) ----------------------------------------------------------------------------------------------------- Class A (5/87) 2002(e) $10.02 $.26 $ .21 $ .47 $(.26) $ -- $(.26) $10.23 4.71% 2001 9.50 .52 .51 1.03 (.51) -- (.51) 10.02 11.00 2000 10.68 .49 (1.14) (.65) (.50) (.03) (.53) 9.50 (6.18) 1999 10.81 .50 (.10) .40 (.50) (.03) (.53) 10.68 3.76 1998 10.15 .52 .66 1.18 (.52) -- (.52) 10.81 11.85 1997 9.79 .53 .35 .88 (.52) -- (.52) 10.15 9.22 Class B (2/97) 2002(e) 10.03 .22 .21 .43 (.22) -- (.22) 10.24 4.34 2001 9.52 .45 .50 .95 (.44) -- (.44) 10.03 10.07 2000 10.70 .42 (1.15) (.73) (.42) (.03) (.45) 9.52 (6.88) 1999 10.82 .42 (.08) .34 (.43) (.03) (.46) 10.70 3.11 1998 10.16 .43 .68 1.11 (.45) -- (.45) 10.82 11.03 1997(d) 10.21 .12 (.06) .06 (.11) -- (.11) 10.16 .61 Class C (2/97) 2002(e) 10.01 .23 .21 .44 (.23) -- (.23) 10.22 4.44 2001 9.49 .47 .50 .97 (.45) -- (.45) 10.01 10.41 2000 10.67 .43 (1.14) (.71) (.44) (.03) (.47) 9.49 (6.73) 1999 10.80 .44 (.10) .34 (.44) (.03) (.47) 10.67 3.19 1998 10.15 .46 .66 1.12 (.47) -- (.47) 10.80 11.17 1997(d) 10.13 .16 .02 .18 (.16) -- (.16) 10.15 1.75 Class R (2/97) 2002(e) 10.01 .27 .21 .48 (.27) -- (.27) 10.22 4.82 2001 9.50 .54 .50 1.04 (.53) -- (.53) 10.01 11.10 2000 10.69 .51 (1.15) (.64) (.52) (.03) (.55) 9.50 (6.08) 1999 10.81 .52 (.08) .44 (.53) (.03) (.56) 10.69 4.08 1998 10.16 .54 .66 1.20 (.55) -- (.55) 10.81 11.98 1997(d) 10.21 .15 (.06) .09 (.14) -- (.14) 10.16 .85 -----------------------------------------------------------------------------------------------------
Class (Inception Date) Ratios/Supplemental Data --------------------------------------------------------------------------------- Before Credit/ After After Credit/ Reimbursement Reimbursement(b) Reimbursement(c) COLORADO -------------------- -------------------- -------------------- Ratio Ratio Ratio of Net of Net of Net Invest- Invest- Invest- Ratio of ment Ratio of ment Ratio of ment Expenses Income Expenses Income Expenses Income Ending to to to to to to Net Average Average Average Average Average Average Portfolio Year Ended May Assets Net Net Net Net Net Net Turnover 31, (000) Assets Assets Assets Assets Assets Assets Rate ----------------------------------------------------------------------------------------------------- Class A (5/87) 2002(e) $32,976 1.01%* 5.03%* 1.01%* 5.03%* 1.00%* 5.05%* 16% 2001 32,306 1.00 5.28 1.00 5.28 .99 5.29 33 2000 32,448 1.26 4.94 1.26 4.94 1.25 4.95 54 1999 39,189 1.03 4.54 .96 4.61 .96 4.62 23 1998 37,285 1.01 4.83 1.00 4.84 1.00 4.84 19 1997 31,229 1.18 4.87 .74 5.31 .74 5.31 27 Class B (2/97) 2002(e) 6,136 1.76* 4.28* 1.76* 4.28* 1.74* 4.29* 16 2001 4,916 1.75 4.53 1.75 4.53 1.74 4.54 33 2000 4,533 2.04 4.19 2.04 4.19 2.03 4.20 54 1999 4,424 1.78 3.80 1.68 3.90 1.68 3.91 23 1998 1,661 1.76 4.05 1.75 4.06 1.75 4.06 19 1997(d) 444 1.78* 4.35* 1.53* 4.60* 1.53* 4.60* 27 Class C (2/97) 2002(e) 3,146 1.56* 4.48* 1.56* 4.48* 1.55* 4.50* 16 2001 2,995 1.55 4.73 1.55 4.73 1.54 4.74 33 2000 3,113 1.89 4.38 1.89 4.38 1.88 4.39 54 1999 2,464 1.58 4.00 1.49 4.10 1.49 4.10 23 1998 875 1.56 4.24 1.55 4.25 1.55 4.25 19 1997(d) 103 1.58* 4.67* 1.31* 4.94* 1.31* 4.94* 27 Class R (2/97) 2002(e) 794 .81* 5.23* .81* 5.23* .80* 5.25* 16 2001 746 .81 5.47 .81 5.47 .80 5.48 33 2000 1,342 1.11 5.16 1.11 5.16 1.10 5.17 54 1999 864 .83 4.74 .76 4.81 .75 4.82 23 1998 750 .81 5.02 .80 5.03 .80 5.03 19 1997(d) 413 .83* 5.35* .58* 5.60* .58* 5.60* 27 -----------------------------------------------------------------------------------------------------
* Annualized. (a) Total returns are calculated on net asset value without any sales charge and not annualized. (b) After expense reimbursement from the investment adviser, where applicable. (c) After custodian fee credit and expense reimbursement, where applicable. (d) From commencement of class operations as noted. (e) For the six months ended November 30, 2001. See accompanying notes to financial statements. ----- 27 Financial Highlights (Unaudited) (continued) Selected data for a share outstanding throughout each period:
Class (Inception Date) Investment Operations Less Distributions ------------------------ --------------------- NEW MEXICO Net From Realized/ and in Unrealized Excess Beginning Net Invest- of Net Ending Ending Net Invest- ment Invest- Net Net Year Ended Asset ment Gain ment Capital Asset Total Assets May 31, Value Income (Loss) Total Income Gains Total Value Return(a) (000) ----------------------------------------------------------------------------------------------- Class A (9/92) 2002(e) $10.23 $.25 $ .09 $ .34 $(.24) $ -- $(.24) $10.33 3.36% $46,495 2001 9.66 .50 .56 1.06 (.49) -- (.49) 10.23 11.11 46,358 2000 10.58 .47 (.90) (.43) (.49) -- (.49) 9.66 (4.09) 45,795 1999 10.67 .49 (.09) .40 (.49) -- (.49) 10.58 3.74 56,315 1998 10.16 .50 .51 1.01 (.50) -- (.50) 10.67 10.17 54,959 1997 9.81 .51 .35 .86 (.51) -- (.51) 10.16 8.90 50,807 Class B (2/97) 2002(e) 10.23 .21 .09 .30 (.20) -- (.20) 10.33 2.98 4,265 2001 9.66 .42 .56 .98 (.41) -- (.41) 10.23 10.26 3,393 2000 10.57 .40 (.90) (.50) (.41) -- (.41) 9.66 (4.75) 2,717 1999 10.67 .41 (.10) .31 (.41) -- (.41) 10.57 2.89 2,721 1998 10.15 .43 .52 .95 (.43) -- (.43) 10.67 9.46 1,408 1997(d) 10.24 .12 (.10) .02 (.11) -- (.11) 10.15 .18 657 Class C (2/97) 2002(e) 10.23 .22 .08 .30 (.21) -- (.21) 10.32 2.97 2,942 2001 9.65 .44 .57 1.01 (.43) -- (.43) 10.23 10.61 2,396 2000 10.58 .42 (.92) (.50) (.43) -- (.43) 9.65 (4.71) 2,321 1999 10.67 .43 (.09) .34 (.43) -- (.43) 10.58 3.22 2,393 1998 10.16 .45 .51 .96 (.45) -- (.45) 10.67 9.60 1,487 1997(d) 10.23 .12 (.08) .04 (.11) -- (.11) 10.16 .43 155 Class R (2/97) 2002(e) 10.26 .26 .08 .34 (.25) -- (.25) 10.35 3.44 537 2001 9.68 .52 .56 1.08 (.50) -- (.50) 10.26 11.39 520 2000 10.60 .49 (.90) (.41) (.51) -- (.51) 9.68 (3.89) 434 1999 10.70 .51 (.10) .41 (.51) -- (.51) 10.60 3.86 479 1998 10.17 .53 .53 1.06 (.53) -- (.53) 10.70 10.59 466 1997(d) 10.23 .14 (.07) .07 (.13) -- (.13) 10.17 .71 362 ----------------------------------------------------------------------------------------------- Class (Inception Date) Ratios/Supplemental Data --------------------------------------------------------------- Before Credit/ After After Credit/ Reimbursement Reimbursement(b) Reimbursement(c) NEW MEXICO ----------------- ----------------- ----------------- Ratio Ratio Ratio of of of Net Net Net Invest- Invest- Invest- Ratio of ment Ratio of ment Ratio of ment Expenses Income Expenses Income Expenses Income to to to to to to Average Average Average Average Average Average Portfolio Year Ended Net Net Net Net Net Net Turnover May 31, Assets Assets Assets Assets Assets Assets Rate ----------------------------------------------------------------------------------------------- Class A (9/92) 2002(e) .97%* 4.75%* .97%* 4.75%* .96%* 4.76%* 12% 2001 .99 4.92 .99 4.92 .97 4.93 10 2000 1.19 4.73 1.19 4.73 1.19 4.74 24 1999 .97 4.52 .91 4.58 .90 4.58 14 1998 .93 4.65 .79 4.79 .79 4.79 13 1997 1.08 4.76 .77 5.07 .77 5.07 43 Class B (2/97) 2002(e) 1.72* 4.00* 1.72* 4.00* 1.71* 4.01* 12 2001 1.73 4.17 1.73 4.17 1.72 4.18 10 2000 1.97 3.98 1.97 3.98 1.96 3.98 24 1999 1.72 3.77 1.67 3.82 1.67 3.83 14 1998 1.68 3.88 1.53 4.03 1.53 4.03 13 1997(d) 1.68* 4.05* 1.54* 4.19* 1.54* 4.19* 43 Class C (2/97) 2002(e) 1.51* 4.19* 1.51* 4.19* 1.50* 4.20* 12 2001 1.54 4.37 1.54 4.37 1.52 4.38 10 2000 1.76 4.18 1.76 4.18 1.75 4.18 24 1999 1.52 3.97 1.47 4.03 1.46 4.03 14 1998 1.48 4.06 1.31 4.23 1.31 4.23 13 1997(d) 1.48* 4.26* 1.34* 4.40* 1.34* 4.40* 43 Class R (2/97) 2002(e) .77* 4.95* .77* 4.95* .76* 4.96* 12 2001 .79 5.12 .79 5.12 .77 5.13 10 2000 1.01 4.91 1.01 4.91 1.00 4.91 24 1999 .77 4.72 .71 4.78 .70 4.78 14 1998 .73 4.86 .58 5.01 .58 5.01 13 1997(d) .73* 5.04* .59* 5.18* .59* 5.18* 43 -----------------------------------------------------------------------------------------------
* Annualized. (a) Total returns are calculated on net asset value without any sales charge and are not annualized. (b) After expense reimbursement from the investment adviser, where applicable. (c) After custodian fee credit and expense reimbursement, where applicable. (d) From commencement of class operations as noted. (e) For the six months ended November 30, 2001. See accompanying notes to financial statements. ------------------------------------------------------------------------------- 28 Fund Information Board of Trustees Robert P. Bremner Lawrence H. Brown Anne E. Impellizzeri Peter R. Sawers William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Fund Manager Nuveen Investment Management 333 West Wacker Drive Chicago, IL 60606 Legal Counsel Morgan, Lewis & Bockius LLP Washington, D.C. Independent Public Accountants Arthur Andersen LLP Chicago, IL Transfer Agent and Shareholder Services J.P. Morgan Investor Services Co. Nuveen Investor Services P.O. Box 660086 Dallas, Texas 75266-0086 (800) 257-8787 NASD Regulation, Inc. provides a Public Disclosure Program which supplies certain information regarding the disciplinary history of NASD members and their associated persons in response to either telephone inquiries at (800) 289-9999 or written inquiries at www.nasdr.com. NASD Regulation, Inc. also provides an investor brochure that includes information describing the Public Disclosure Program. ----- 29 Serving Investors For Generations -------------------------------------------------------------------------------- A 100-Year Tradition of Quality Investments [PHOTO OF JOHN NUVEEN, SR. APPEARS HERE] John Nuveen, Sr. Since 1898, John Nuveen & Co. Incorporated has been synonymous with investments that withstand the test of time. In fact, more than 1.3 million investors have trusted Nuveen to help them build and sustain the wealth of a lifetime. Whether your focus is long-term growth, dependable income or sustaining accumulated wealth, Nuveen offers a wide variety of investments and services to help meet your unique circumstances and financial planning needs. We can help you build a better, well-diversified portfolio. Call Your Financial Advisor Today To find out how Nuveen Mutual Funds might round out your investment portfolio, contact your financial advisor today. Or call Nuveen at (800) 257-8787 for more information. Ask your advisor or call for a prospectus, which details risks, fees and expenses. Please read the prospectus carefully before you invest. NUVEEN Investments Nuveen Investments 333 West Wacker Drive Chicago, Illinois 60606-1286 www.nuveen.com NUVEEN Investments Nuveen Municipal Bond Fund Semiannual Report dated November 30, 2001 Dependable, tax-free income to help you keep more of what you earn. [PHOTOS APPEAR HERE] Nuveen Florida Municipal Bond Fund Less mail more freedom with online fund reports There is a new way to receive your Nuveen Fund updates faster than ever. Nuveen now can link you with electronic versions of the important financial information we send you by regular mail. By registering for online access via the internet, you will be able to view and save the Fund information you currently receive in the mail. This information can be stored on your computer and retrieved any time. In addition, you can select only the specific pages you want to view or print. With this new service, you'll receive an e-mail notice the moment Fund reports are ready. This notice will contain a link to the report - all you have to do is click your computer mouse on the internet address provided. You'll be saving time, as well as saving your Fund paper, printing and distribution expenses. Registering for electronic access is easy and only takes a few minutes. (see below) The e-mail address you provide is strictly confidential and will not be used for anything other than notifications of shareholder information. And if you decide you don't like receiving your reports electronically, it's a simple process to go back to regular mail delivery. Sign up today -- here's what you need to do... If your Nuveen Fund dividends are PAID TO YOUR BROKERAGE ACCOUNT, follow the steps outlined below: 1. Go to www.investordelivery.com 2. Look at the address sheet that accompanied this report. Enter the personal 13-character enrollment number imprinted near your name on the address sheet. 3. You'll be taken to a page with several options. Select the New Enrollment- Create screen. Once there, enter your e-mail address (yourID@providerID.com), and a personal, 4-digit PIN of your choice. (Pick a number that's easy to remember.) 4. Click Submit. Confirm the information you just entered is correct, then click Submit again. 5. You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 6. Use this same process if you need to change your registration information or cancel internet viewing. If your Nuveen Fund dividends COME DIRECTLY TO YOU FROM NUVEEN, follow the steps outlined below: 1. Go to www.nuveen.com 2. Select the Access Account tab. Select the E-Report Enrollment section. Click on Enrollment Page. 3. You'll be taken to a screen that asks for your social security number and e-mail address. Fill in this information, then click Enroll. 4. You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 5. Use this same process if you need to change your registration information or cancel internet viewing. Must be predeced by or accompanied by a prospectus. Dear Shareholder, [PHOTO OF TIMOTHY R. SCHWERTFEGER APPEARS HERE] In the aftermath of September 11, the financial markets have reacted with volatility and uncertainty as investors attempt to better understand how the U.S. and world economies are likely to perform in the months ahead. It's too soon to tell what the long-term impact will be on the markets or your Fund, but one thing that is increasingly clear to us is that a diversified portfolio that includes high quality municipal bonds can leave you well positioned to reduce overall investment volatility. For example, during the period covered by this report, your Nuveen Fund continued to meet its primary objective of providing you with dependable, tax- free income to help you keep more of what you earn. Detailed information on your Fund's performance can be found in the Fund Spotlight later in this report. In addition to providing you with high current income exempt from federal taxes, your Nuveen Fund also features several characteristics that can help make it an essential part of your overall investment strategy. These include careful research, constant surveillance and broad trading execution by Nuveen's seasoned portfolio management team, with every action designed to supplement income, improve Fund structure, better adapt to current market conditions or increase diversification. In turbulent times like these, prudent investors understand the importance of diversification, balance, and risk management, all attributes your Nuveen Fund can bring to your portfolio. For more than 100 years, Nuveen has specialized in offering quality investments such as these Nuveen Funds to those seeking to accumulate and preserve wealth and establish a lasting legacy. Our mission continues to be to assist you and your financial advisor by offering the investment services and products that can help you invest well and leave your mark for future generations. We thank you for continuing to choose Nuveen Investments as your partner as you work toward that goal. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board January 15, 2002
Dear Shareholder.......................... 1 Market Commentary......................... 2 Florida Spotlight......................... 3 Portfolio of Investments.................. 4 Statement of Net Assets................... 10 Statement of Operations................... 11 Statement of Changes in Net Assets........ 12 Notes to Financial Statements............. 13 Financial Highlights...................... 16 Fund Information.......................... 17
Page 1 Market Commentary Nuveen Research Continued uncertainty and volatile equity markets characterized the economic landscape over the six-months ended November 30, 2001. Many observers now believe that the United States has been in a recession since the spring. Since our last report, unemployment has risen, corporate capital expenditures have dropped and indicators of consumer sentiment have declined. The Federal Reserve has responded by cutting the fed funds rate 11 times through the course of 2001 to eventually reach 1.75%, the lowest level in 40 years. Partially as a result of these lower rates and weaker economic conditions, the general municipal market performed well over this reporting period. The yield of the widely followed Bond Buyer 20 Municipal Bond Index fell to 5.15% as of November 30, 2001, compared with 5.28% six months earlier. Low interest rates and a slowing economy also caused new municipal issuance to grow, with new issue supply topping $252 billion for the 11 months ended November 30, 2001, a 37% increase over the same period in 2000. Some of this increase in volume may have been driven by economic conditions that made it more difficult for municipalities to finance projects from current revenues. The erosion of tax bases caused by the declining economy, increased expenses for Medicaid, additional unemployment compensation claims, and unanticipated expenses related to homeland security may cause issuers to continue feeling the pinch in revenues as we head into 2002. Some recent surveys of governors and state budget officers indicate that state budget shortfalls for fiscal year 2002 could rise to between $40 and $50 billion. While the rainy-day funds which states built up over the prolonged growth during the mid- to late-1990s should leave states in a better position than they were in the previous recession of 1991-92, some officials now fear that this recession, and thus also state budget shortfalls, may be deeper than last time. As we look toward the next six to twelve months, we anticipate there may be some degree of improvement in the economy, given the government's focus on stimulating consumer demand. However, since many consumers are already carrying large amounts of personal debt, near-term recovery may be muted until corporate capital expenditures start to rebound. Absent global deflation, we expect the fed funds rate to remain stable or gradually to drift higher as we move through 2002. Page 2 Fund Spotlight As of November 30, 2001 Nuveen Florida Municipal Bond Fund
Quick Facts A Shares B Shares C Shares R Shares ------------------------------------------------------------------------------------------------------ NAV $ 10.33 $ 10.32 $ 10.33 $ 10.32 ------------------------------------------------------------------------------------------------------ Latest Dividend/1/ $0.0460 $0.0395 $0.0415 $0.0480 ------------------------------------------------------------------------------------------------------ CUSIP 67065L708 67065L658 67065L641 67065L872 ------------------------------------------------------------------------------------------------------ Inception Date 6/90 2/97 9/95 2/97 ------------------------------------------------------------------------------------------------------
Annualized Total Returns as of 11/30/01/2/ A Shares NAV Offer 1-Year 6.22% 1.76% ------------------------------------------------------------------ 5-Year 4.63% 3.74% ------------------------------------------------------------------ 10-Year 6.05% 5.59% ------------------------------------------------------------------ B Shares w/o CDSC w/CDSC 1-Year 5.34% 1.34% ------------------------------------------------------------------ 5-Year 3.85% 3.68% ------------------------------------------------------------------ 10-Year 5.54% 5.54% ------------------------------------------------------------------ C Shares NAV 1-Year 5.57% ------------------------------------------------------------------ 5-Year 4.05% ------------------------------------------------------------------ 10-Year 5.47% ------------------------------------------------------------------ R Shares NAV 1-Year 6.33% ------------------------------------------------------------------ 5-Year 4.82% ------------------------------------------------------------------ 10-Year 6.14% ------------------------------------------------------------------ Tax-Free Yields as of 11/30/01 A Shares NAV Offer SEC 30-Day Yield 4.68% 4.49% ------------------------------------------------------------------ Taxable-Equivalent Yield/3/ 6.73% 6.46% ------------------------------------------------------------------ B Shares NAV SEC 30-Day Yield 3.93% ------------------------------------------------------------------ Taxable-Equivalent Yield/3/ 5.65% ------------------------------------------------------------------ C Shares NAV SEC 30-Day Yield 4.13% ------------------------------------------------------------------ Taxable-Equivalent Yield/3/ 5.94% ------------------------------------------------------------------ R Shares NAV SEC 30-Day Yield 4.89% ------------------------------------------------------------------ Taxable-Equivalent Yield/3/ 7.04% ------------------------------------------------------------------ Annualized Total Returns as of 9/30/01/2/ A Shares NAV Offer 1-Year 7.88% 3.33% ------------------------------------------------------------------ 5-Year 5.33% 4.43% ------------------------------------------------------------------ 10-Year 6.18% 5.73% ------------------------------------------------------------------ B Shares w/o CDSC w/CDSC 1-Year 6.98% 2.98% ------------------------------------------------------------------ 5-Year 4.55% 4.38% ------------------------------------------------------------------ 10-Year 5.68% 5.68% ------------------------------------------------------------------ C Shares NAV 1-Year 7.22% ------------------------------------------------------------------ 5-Year 4.74% ------------------------------------------------------------------ 10-Year 5.61% ------------------------------------------------------------------ R Shares NAV 1-Year 8.08% ------------------------------------------------------------------ 5-Year 5.53% ------------------------------------------------------------------ 10-Year 6.28% ------------------------------------------------------------------ Top Five Sectors/4/ Housing (Multifamily) 20% ------------------------------------------------------------------ Healthcare 12% ------------------------------------------------------------------ Utilities 11% ------------------------------------------------------------------ Transportation 10% ------------------------------------------------------------------ Long-Term Care 9% ------------------------------------------------------------------ Portfolio Statistics Total Net Assets $354.8 million ------------------------------------------------------------------ Average Duration 7.33 ------------------------------------------------------------------ Average Effective Maturity 22.10 years ------------------------------------------------------------------
Returns are historical and do not guarantee future performance. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Performance of classes will differ. For additional information, please see the fund prospectus. 1 Paid December 3, 2001. This is the latest monthly dividend declared during the period ended November 30, 2001. 2 Class A share returns are actual. Class B, C and R share returns are actual for the period since class inception; returns prior to class inception are Class A share returns adjusted for differences in sales charges and expenses, which are primarily differences in distribution and service fees. Class A shares have a 4.2% maximum sales charge. Class B shares have a CDSC that begins at 5% for redemptions during the first year after purchase and declines periodically to 0% over the following five years. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within one year, which is not reflected in the one-year total return. 3 Based on the SEC 30-Day Yield and a federal income tax rate of 30.5%. 4 As a percentage of total bond holdings as of November 30, 2001. Holdings are subject to change. Page 3 Portfolio of Investments (Unaudited) Nuveen Florida Municipal Bond Fund November 30, 2001
Principal Optional Call Amount (000) Description Provisions* Ratings** Market Value ------------------------------------------------------------------------------- Basic Materials - 4.8% $ 750 Clay County Development 7/02 at 102 A+ $ 780,098 Authority, Florida, Industrial Development Revenue Refunding Bonds (Cargill, Incorporated Project), Series 1992, 6.400%, 3/01/11 5,500 Escambia County, Florida, 8/04 at 102 BBB 5,748,435 Pollution Control Revenue Bonds (Champion International Corporation Project), Series 1994, 6.900%, 8/01/22 (Alternative Minimum Tax) 8,350 Escambia County, Florida, 9/06 at 102 Baa2 8,541,549 Pollution Control Revenue Bonds (Champion International Corporation Project), Series 1996, 6.400%, 9/01/30 (Alternative Minimum Tax) 600 City of Jacksonville, 3/02 at 102 A+ 616,608 Florida, Industrial Development Revenue Refunding Bonds (Cargill, Incorporated Project), Series 1992, 6.400%, 3/01/11 1,500 Nassau County, Florida, 7/03 at 102 BBB- 1,482,300 Pollution Control Revenue Refunding Bonds (ITT Rayonier Incorporated Project), Series 1993, 6.200%, 7/01/15 ------------------------------------------------------------------------------- Consumer Cyclicals - 2.3% 10,000 Hillsborough County 4/10 at 101 N/R 8,181,700 Industrial Development Authority, Florida, Exempt Facilities Revenue Bonds (National Gypsum Company - Apollo Beach Project), Series 2000B, 7.125%, 4/01/30 (Alternative Minimum Tax) ------------------------------------------------------------------------------- Education and Civic Organizations - 0.1% 300 Brevard County Educational 11/02 at 102 BBB- 308,880 Facilities Authority, Florida, Educational Facilities Refunding and Improvement Revenue Bonds, Series 1992, 6.875%, 11/01/22 ------------------------------------------------------------------------------- Healthcare - 11.6% 3,550 Highlands County Health 11/11 at 101 A- 3,580,353 Facilities Authority, Florida, Hospital Revenue Bonds (Adventist Health System Sunbelt Obligated Group), Series 2001A, 6.000%, 11/15/31 8,500 Jacksonville Economic 11/11 at 101 AA 8,448,745 Development Commission, Florida, Mayo Foundation Healthcare Facilities Revenue Bonds (Mayo Clinic Jacksonville), Series 2001A, 5.500%, 11/15/36 1,750 City of Lakeland, Florida, 11/06 at 102 AAA 1,757,543 Hospital Revenue Refunding Bonds (Lakeland Regional Medical Center Project), Series 1996, 5.250%, 11/15/25 2,320 Martin County Health 5/02 at 101 AAA 2,356,215 Facilities Authority, Florida, Hospital Revenue Refunding Bonds (Martin Memorial Hospital), Series 1990A, 7.125%, 11/15/04 2,250 City of Miami Beach Health No Opt. Call BBB- 2,234,228 Facilities Authority, Florida, Hospital Revenue Bonds (Mount Sinai Medical Center of Florida Project), Series 2001A, 6.125%, 11/15/11 5,000 North Broward Hospital 1/11 at 101 A- 5,108,000 District, Florida, Improvement Revenue Bonds, Series 2001, 6.000%, 1/15/31 10,645 Orange County Health 11/05 at 102 AAA 10,725,902 Facilities Authority, Florida, Hospital Revenue Bonds (Adventist Health System/Sunbelt Obligated Group), Series 1995, 5.250%, 11/15/20 5,000 Palm Beach County Health 12/11 at 101 A+ 4,932,250 Facilities Authority, Florida, Hospital Revenue and Revenue Refunding Bonds (BRCH Corporation Obligated Group), Series 2001, 5.625%, 12/01/31 2,040 City of Tallahassee, 12/10 at 100 A3 2,148,385 Florida, Health Facilities Revenue Bonds (Tallahassee Memorial Healthcare, Inc. Project), Series 2000, 6.375%, 12/01/30 ------------------------------------------------------------------------------- Housing/Multifamily - 19.7% 600 Broward County Housing 2/05 at 102 AAA 642,234 Finance Authority, Florida, Multifamily Housing Revenue Refunding Bonds (Lakeside Apartments Project), Series 1995, 7.000%, 2/01/25 250 Broward County Housing 8/06 at 102 AAA 264,550 Finance Authority, Florida, Multifamily Housing Revenue Refunding Bonds (Boardwalk Apartments Project), Series 1996, 6.200%, 8/01/16 11,160 Broward County Housing 7/09 at 102 N/R 10,798,416 Finance Authority, Florida, Multifamily Housing Revenue Bonds (Pier Club Apartments Project), Series 1999, 7.000%, 7/01/34 2,700 Duval County Housing 4/05 at 102 BBB- 2,813,616 Finance Authority, Florida, Multifamily Housing Revenue Refunding Bonds (Greentree Place Project), Series 1995, 6.750%, 4/01/25 605 Florida Housing Finance 6/02 at 103 AAA 626,175 Agency, General Mortgage Revenue Refunding Bonds, 1992 Series A, 6.400%, 6/01/24 Florida Housing Finance Agency, Housing Revenue Bonds (Antigua Club Apartments Project), 1995 Series A1: 1,000 6.750%, 8/01/14 2/05 at 102 AAA 1,053,540 (Alternative Minimum Tax) 5,000 6.875%, 8/01/26 2/05 at 102 AAA 5,287,150 (Alternative Minimum Tax)
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Principal Optional Call Amount (000) Description Provisions* Ratings** Market Value ------------------------------------------------------------------------------- Housing/Multifamily (continued) $ 1,115 Florida Housing Finance 2/05 at 102 AAA $ 1,179,034 Agency, Housing Revenue Bonds (Brittany of Rosemont Apartments Project), 1995 Series C1, 6.875%, 8/01/26 (Alternative Minimum Tax) Florida Housing Finance Agency, Housing Revenue Bonds (Vineyards Project), 1995 Series H: 1,260 6.400%, 11/01/15 11/05 at 102 BBB- 1,290,391 1,660 6.500%, 11/01/25 11/05 at 102 BBB- 1,685,066 2,000 Florida Housing Finance 8/06 at 102 AAA 2,120,460 Agency, Multifamily Housing Revenue Refunding Bonds (Players Club), 1991 Series C, 6.200%, 8/01/16 3,500 Florida Housing Finance 10/06 at 102 AAA 3,695,860 Agency, Housing Revenue Bonds (Villas of Capri Project), 1996 Series H, 6.100%, 4/01/17 (Alternative Minimum Tax) 1,000 Florida Housing Finance 9/06 at 102 AAA 1,043,250 Agency, Housing Revenue Bonds (Leigh Meadows Apartments Project), 1996 Series N, 6.300%, 9/01/36 (Alternative Minimum Tax) 1,000 Florida Housing Finance 9/06 at 102 AAA 1,043,250 Agency, Housing Revenue Bonds (Stoddert Arms Apartments Project), 1996 Series O, 6.300%, 9/01/36 (Alternative Minimum Tax) 1,425 Florida Housing Finance 12/01 at 101 AAA 1,442,998 Agency, Multifamily Housing Revenue Bonds (GNMA Collateralized - Driftwood Terrace Apartments Project), 1989 Series I, 7.650%, 12/20/31 (Alternative Minimum Tax) 10,000 Florida Housing Finance 7/08 at 102 N/R 9,523,900 Agency, Housing Revenue Bonds (Whistlers Cove Apartment Project), Series 1998T1, 6.500%, 1/01/39 (Alternative Minimum Tax) (Mandatory put 1/01/28) 10,000 Florida Housing Finance No Opt. Call N/R 9,998,300 Corporation, Revenue Bonds (Pembroke Apartments), Series 2001B, 7.750%, 2/01/41 1,000 Orange County Housing 4/02 at 101 BBB+ 1,004,360 Finance Authority, Florida, Multifamily Housing Revenue Bonds (Ashley Point Apartments Project), 1994 Series A, 7.100%, 10/01/24 (Alternative Minimum Tax) 750 Palm Beach County Housing 6/08 at 102 N/R 732,330 Finance Authority, Florida, Multifamily Housing Revenue Bonds (Windsor Park Apartments Project), Series 1998, 5.900%, 6/01/38 (Alternative Minimum Tax) 13,100 Palm Beach County Housing 7/10 at 102 N/R 13,328,857 Finance Authority, Florida, Multifamily Housing Revenue Bonds (Saddlebrook Apartments Project), Series 2000A, 7.450%, 7/01/40 (Alternative Minimum Tax) ------------------------------------------------------------------------------- Housing/Single Family - 3.9% 775 Broward County Housing No Opt. Call AAA 185,256 Finance Authority, Florida, Home Mortgage Revenue Bonds, 1985 Series A, 0.000%, 4/01/16 1,825 Clay County Housing 3/05 at 102 Aaa 1,918,458 Finance Authority, Florida, Single Family Mortgage Revenue Bonds (Multi-County Program), Series 1995, 6.550%, 3/01/28 (Alternative Minimum Tax) 111 Dade County Housing 12/01 at 102 AAA 113,310 Finance Authority, Florida, Single Family Mortgage Revenue Refunding Bonds, 1991 Series D, 6.950%, 12/15/12 25 Dade County Housing 3/02 at 101 Aaa 25,454 Finance Authority, Florida, Single Family Mortgage Revenue Bonds, 1991 Series E, 7.000%, 3/01/24 1,000 Dade County Housing 4/05 at 102 AAA 1,058,050 Finance Authority, Florida, Single Family Mortgage Revenue Bonds, Series 1995, 6.700%, 4/01/28 (Alternative Minimum Tax) 185 Duval County Housing 3/02 at 102 AAA 188,889 Finance Authority, Florida, Single Family Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities Program), Series 1990A, 7.650%, 9/01/10 475 Duval County Housing 10/04 at 102 Aaa 495,677 Finance Authority, Florida, Single Family Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities Program), Series 1994, 6.550%, 10/01/15 (Alternative Minimum Tax) 155 Escambia County Housing 4/02 at 102 Aaa 158,723 Finance Authority, Florida, Single Family Mortgage Revenue Bonds (Multi-County Program), Series 1992A, 6.900%, 4/01/20 (Alternative Minimum Tax) 320 Escambia County Housing 4/05 at 102 AAA 337,770 Finance Authority, Florida, Single Family Mortgage Revenue Bonds (Multi-County Program), Series 1995, 6.950%, 10/01/27 (Alternative Minimum Tax) 880 Florida Housing Finance 7/04 at 102 AAA 908,178 Agency, Single Family Mortgage Revenue Refunding Bonds, Series A, 6.250%, 7/01/11 Florida Housing Finance Agency, Single Family Mortgage Revenue Refunding Bonds, Series 1995A: 645 6.550%, 7/01/14 1/05 at 102 AAA 684,803 (Alternative Minimum Tax) 650 6.650%, 1/01/24 1/05 at 102 AAA 684,561 (Alternative Minimum Tax) 1,455 Leon County Housing No Opt. Call AAA 1,672,799 Finance Authority, Florida, Single Family Mortgage Revenue Bonds (Multi-County Program), Series 1995B, 7.300%, 1/01/28 (Alternative Minimum Tax)
-------------------------------------------------------------------------------- 5 Portfolio of Investments (Unaudited) Nuveen Florida Municipal Bond Fund (continued) November 30, 2001
Principal Optional Call Amount (000) Description Provisions* Ratings** Market Value -------------------------------------------------------------------------------- Housing/Single Family (continued) $ 405 Manatee County Housing 11/05 at 102 Aaa $ 430,373 Finance Authority, Florida, Single Family Mortgage Revenue Bonds, Series 1994, Subseries 3, 7.600%, 11/01/26 (Alternative Minimum Tax) 9,050 Orange County Housing 9/08 at 27 23/32 Aaa 1,676,784 Finance Authority, Florida, Homeowner Revenue Bonds, 1999 Series A-2, 0.000%, 3/01/31 515 Palm Beach County 3/02 at 102 Aaa 525,810 Housing Finance Authority, Florida, Single Family Mortgage Revenue Bonds, 1990 Series B, 7.600%, 3/01/23 650 Pinellas County Housing 2/05 at 102 AAA 681,382 Finance Authority, Florida, Single Family Mortgage Revenue Bonds (Multi-County Program), Series 1995A, 6.650%, 8/01/21 (Alternative Minimum Tax) 955 Pinellas County Housing 3/07 at 102 Aaa 981,005 Finance Authority, Florida, Single Family Mortgage Revenue Bonds (Multi- County Program), Series 1998A, 6.850%, 3/01/29 (Alternative Minimum Tax) 1,160 Polk County Housing 3/02 at 101 Aaa 1,184,685 Finance Authority, Florida, Single Family Mortgage Revenue Refunding Bonds, Series 1991A, 7.150%, 9/01/23 -------------------------------------------------------------------------------- Long-Term Care - 8.8% 10,000 City of Atlantic Beach, 10/09 at 101 A 10,348,200 Florida, Healthcare Facilities Revenue Refunding Bonds (Fleet Landing Project), Series 1999, 6.000%, 10/01/29 Escambia County Health Facilities Authority, Florida, Health Facilities Revenue Bonds (Azalea Trace, Inc.), Series 1997: 1,000 6.000%, 1/01/15 1/07 at 102 N/R 928,870 1,595 6.100%, 1/01/19 1/07 at 102 N/R 1,457,543 Jacksonville Health Facilities Authority, Florida, Tax-Exempt Industrial Development Revenue Bonds (National Benevolent Association - Cypress Village Project), Series 1996A: 690 6.125%, 12/01/16 12/06 at 102 Baa2 685,653 1,000 6.250%, 12/01/26 12/06 at 102 Baa2 976,540 1,550 Osceola County 5/02 at 101 AAA 1,601,941 Industrial Development Authority, Florida, Revenue Bonds (Evangelical Lutheran Good Samaritan Society Project), Series 1991, 6.750%, 5/01/16 8,000 Palm Beach County Health 11/06 at 102 A- 7,953,680 Facilities Authority, Florida, Retirement Community Revenue Bonds (Adult Communities Total Services, Inc. Obligated Group), Series 1996, 5.625%, 11/15/20 4,000 Palm Beach County, 12/06 at 102 A+ 4,279,960 Florida, Industrial Development Revenue Bonds (Lourdes-Noreen McKeen Residence for Geriatric Care, Inc. Project), Series 1996, 6.625%, 12/01/26 Sarasota County Health Facilities Authority, Florida, Health Facilities Revenue Refunding Bonds (Sunnyside Properties Project), Series 1995: 540 5.500%, 5/15/02 No Opt. Call N/R 543,386 570 5.500%, 5/15/03 No Opt. Call N/R 579,570 600 5.500%, 5/15/04 No Opt. Call N/R 613,494 170 5.500%, 5/15/05 No Opt. Call N/R 173,556 1,000 6.000%, 5/15/10 5/06 at 102 N/R 956,560 -------------------------------------------------------------------------------- Tax Obligation/General - 8.5% Village of Bolingbrook, Illinois, General Obligation Bonds, Series 1999C Refunding: 2,540 0.000%, 1/01/29 1/09 at 33 7/8 AAA 549,885 7,750 0.000%, 1/01/31 1/09 at 30 5/16 AAA 1,494,278 3,750 0.000%, 1/01/33 1/09 at 27 3/32 AAA 643,725 1,325 0.000%, 1/01/34 1/09 at 25 21/32 AAA 214,915 State of Florida, Full Faith and Credit, Broward County Expressway Authority, General Obligation Bonds, Series 1984: 4,000 9.875%, 7/01/09 No Opt. Call AAA 5,242,240 1,000 10.000%, 7/01/14 No Opt. Call AAA 1,453,430 2,165 State of Florida, Full No Opt. Call AA+ 2,987,592 Faith and Credit, State Board of Education, Public Education Capital Outlay Bonds, Series 1985, 9.125%, 6/01/14 State of Florida, Full Faith and Credit, State Board of Education, Public Education Capital Outlay Bonds, 1996 Series B: 2,220 4.750%, 6/01/21 6/07 at 101 AA+ 2,112,841 4,120 4.500%, 6/01/27 6/07 at 101 AA+ 3,667,706
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Principal Optional Call Amount (000) Description Provisions* Ratings** Market Value ------------------------------------------------------------------------------- Tax Obligation/General (continued) $ 5,000 State of Florida, Full 6/08 at 101 AAA $ 4,738,650 Faith and Credit, State Board of Education, Public Education Capital Outlay Bonds, 1997 Series B, 4.750%, 6/01/23 3,000 State of Florida, Full 6/09 at 101 AAA 2,717,820 Faith and Credit, State Board of Education, Public Education Capital Outlay Refunding Bonds, 1999 Series B, 4.500%, 6/01/24 Palm Beach County, Florida, General Obligation Bonds (Recreational and Cultural Facilities Program), Series 1999A: 1,560 5.750%, 8/01/18 8/09 at 100 AAA 1,663,834 1,970 5.750%, 8/01/19 8/09 at 100 AAA 2,095,903 635 Township of Piscataway, No Opt. Call Aaa 647,325 New Jersey, General Obligation Bonds, Series 2001, 5.000%, 8/15/19 ------------------------------------------------------------------------------- Tax Obligation/Limited - 7.2% 1,050 Dade County, Florida, 10/06 at 102 AAA 1,024,821 Special Obligation and Refunding Bonds, Series 1996B, 5.000%, 10/01/35 190 Escambia County School 2/02 at 100 AAA 191,284 Board, Florida, Certificates of Participation, Series 1992, 6.375%, 2/01/12 1,500 Florida Department of 3/04 at 102 AA 1,572,555 Corrections, Certificates of Participation, Series 1994, 6.000%, 3/01/14 5,000 Hernando County, Florida, No Opt. Call AAA 6,512,500 Revenue Bonds (Criminal Justice Complex Financing Program), 1986 Series, 7.650%, 7/01/16 250 City of Jacksonville, 10/02 at 102 AAA 263,740 Florida, Excise Taxes Revenue Refunding Bonds, Series 1992, 6.500%, 10/01/13 840 Martin County, Florida, 11/05 at 100 A2 879,178 Special Assessment Bonds (Tropical Farms Water and Sewer Special Assessment District), Series 1995, 5.900%, 11/01/11 1,000 Miami Beach Redevelopment 12/04 at 102 Baa1 1,010,770 Agency, Florida, Tax Increment Revenue Bonds (City Center/Historic Convention Village), Series 1993, 5.875%, 12/01/22 (Alternative Minimum Tax) 3,760 Miami-Dade County, 10/10 at 102 AAA 3,849,714 Florida, Industrial Development Revenue Bonds (BAC Funding Corporation Project), Series 2000A, 5.375%, 10/01/30 1,750 Northern Palm Beach County 8/09 at 101 N/R 1,762,163 Improvement District, Florida, Water Control and Development Bonds (Unit of Development No. 9B), Series 1999, 6.000%, 8/01/29 5,550 Okaloosa County, Florida, 10/10 at 101 AAA 5,922,183 Fourth Cent Tourist Development Tax Revenue Bonds, Series 2000, 5.625%, 10/01/30 1,245 Osceola County Industrial 8/11 at 101 AAA 1,218,145 Development Authority, Florida, Industrial Development Revenue Bonds (P.M. Wells Charter School Project), Series 2001A, 5.000%, 8/01/26 3,300 City of Tampa, Florida, No Opt. Call AAA 1,500,642 Utilities Tax Improvement Bonds, Series 1996, 0.000%, 4/01/17 ------------------------------------------------------------------------------- Transportation - 9.7% 6,000 Broward County, Florida, 10/11 at 101 AAA 5,946,120 Airport System Revenue Bonds, 2001 Series J-1, 5.250%, 10/01/26 (Alternative Minimum Tax) 8,000 City of Chicago, Illinois, No Opt. Call B2 4,899,600 O'Hare International Airport, Special Facility Revenue Bonds (United Air Lines, Inc. Project), Series 2001A, 6.375%, 11/01/35 (Alternative Minimum Tax) (Mandatory put 5/01/13) 1,000 Dade County, Florida, 10/02 at 102 AAA 1,050,550 Aviation Revenue Bonds, 1992 Series B, 6.550%, 10/01/13 (Alternative Minimum Tax) 11,000 Dallas-Fort Worth No Opt. Call BB 9,783,070 International Airport Facilities Improvement Corporation, Texas, Revenue Refunding Bonds (American Airlines), Series 2000C, 6.150%, 5/01/29 (Alternative Minimum Tax) (Mandatory put 11/01/07) 1,000 Hillsborough County 10/06 at 102 AAA 1,058,070 Aviation Authority, Florida, Tampa International Airport Revenue Bonds, Series 1996B, 5.875%, 10/01/23 5,500 Memphis-Shelby County 3/11 at 100 AAA 5,424,430 Airport Authority, Tennessee, Airport Revenue Bonds, Series 2001B, 5.125%, 3/01/26 Sanford Airport Authority, Florida, Industrial Development Revenue Bonds (Central Florida Terminals Inc. Project), Series 1995A: 3,000 7.500%, 5/01/15 5/06 at 102 N/R 2,999,220 (Alternative Minimum Tax) 3,270 7.750%, 5/01/21 5/06 at 102 N/R 3,275,232 (Alternative Minimum Tax)
-------------------------------------------------------------------------------- 7 Portfolio of Investments (Unaudited) Nuveen Florida Municipal Bond Fund (continued) November 30, 2001
Principal Optional Call Amount (000) Description Provisions* Ratings** Market Value ------------------------------------------------------------------------------- U.S. Guaranteed - 6.8% $ 255 Dade County, Florida, 4/04 at 102 A3*** $ 279,539 Special Obligation Bonds (Courthouse Center Project), Series 1994, 6.300%, 4/01/14 (Pre- refunded to 4/01/04) 1,500 Dade County Health No Opt. Call AAA 1,635,360 Facilities Authority, Florida, Hospital Revenue Bonds (Baptist Hospital of Miami Project), Series 1991A, 5.750%, 5/01/21 300 Dade County Health 8/02 at 102 AAA 315,519 Facilities Authority, Florida, Hospital Revenue Refunding Bonds (North Shore Medical Center Project), Series 1992, 6.500%, 8/15/15 (Pre- refunded to 8/15/02) 310 Escambia County School 2/02 at 100 AAA 312,310 Board, Florida, Certificates of Participation, Series 1992, 6.375%, 2/01/12 (Pre-refunded to 2/01/02) 300 State of Florida, Full 7/02 at 101 AA+*** 311,004 Faith and Credit, Division of Bond Finance of the Department of General Services, Pollution Control Bonds, Series Y, 6.600%, 7/01/17 (Pre-refunded to 7/01/02) 335 State of Florida, Full 12/01 at 100 AAA 457,999 Faith and Credit, State Board of Education, Public Education Capital Outlay Bonds, Series 1985, 9.125%, 6/01/14 2,000 State of Florida, State 6/02 at 101 AAA 2,066,620 Board of Education, Public Education Capital Outlay Bonds, Series 1991-C, 6.625%, 6/01/17 (Pre-refunded to 6/01/02) 2,990 Hillsborough County, 7/02 at 102 A1*** 3,123,713 Florida, Environmentally Sensitive Land Acquisition and Protection Program Bonds, Series 1992, 6.250%, 7/01/08 (Pre-refunded to 7/01/02) 145 Orange County, Florida, No Opt. Call AAA 166,760 Sales Tax Revenue Bonds, Series 1989, 6.125%, 1/01/19 235 Orange County, Florida, 4/02 at 102 AAA 243,049 Water Utilities System Revenue Bonds, Series 1992, 6.250%, 10/01/17 (Pre-refunded to 4/01/02) 1,000 Palm Beach County School 8/04 at 101 AAA 1,099,620 Board, Florida, Certificates of Participation, Series 1994A, 6.375%, 8/01/15 (Pre-refunded to 8/01/04) 2,000 City of St. Petersburg 12/03 at 100 AAA 2,046,980 Health Facilities Authority, Florida, Allegany Health System Revenue Bonds (St. Anthony's Healthcare Center, Inc.), Series 1991, 6.750%, 12/01/21 (Pre-refunded to 12/01/03) 2,500 Seminole County School 7/04 at 101 AAA 2,768,225 Board, Florida, Certificates of Participation, Series 1994B, 6.750%, 7/01/14 (Pre-refunded to 7/01/04) 5,000 Sunrise Lakes Phase 4 8/05 at 102 BBB-*** 5,684,600 Recreation District, Florida, General Obligation and Revenue Bonds, Series 1995A, 6.750%, 8/01/24 (Pre- refunded to 8/01/05) 2,000 City of Tampa, Florida, 12/04 at 102 AAA 2,245,100 Allegany Health System Revenue Bonds, St. Joseph's Hospital, Inc. Issue, Series 1994, 6.500%, 12/01/23 (Pre- refunded to 12/01/04) 335 City of Tampa, Florida, 10/02 at 101 AAA 349,556 Water and Sewer Systems Revenue Bonds, Series 1992A, 6.000%, 10/01/17 (Pre-refunded to 10/01/02) 1,000 Turtle Run Community 5/03 at 100 BBB+*** 1,056,070 Development District, Coral Springs, Florida, Water Management Benefit Tax Refunding Bonds, Series 1993, 6.400%, 5/01/11 (Pre-refunded to 5/01/03) ------------------------------------------------------------------------------- Utilities - 10.7% 6,000 Citrus County, Florida, 1/02 at 102 A1 6,134,760 Pollution Control Refunding Revenue Bonds (Florida Power Corporation - Crystal River Power Plant Project), Series 1992A, 6.625%, 1/01/27 2,500 Hillsborough County 2/02 at 103 A1 2,584,525 Industrial Development Authority, Florida, Pollution Control Revenue Bonds (Tampa Electric Company Project), Series 1991, 7.875%, 8/01/21 3,000 Jacksonville Electric 10/06 at 100 AA 2,914,620 Authority, Florida, Electric System Revenue Bonds, 2001 Series 3-C, 5.000%, 10/01/26 10,000 City of Lakeland, Florida, 10/10 at 100 AAA 10,291,000 Energy System Revenue Bonds, Series 2000B, 5.500%, 10/01/40 2,125 Lee County, Florida, Solid 4/02 at 102 AAA 2,170,560 Waste System Revenue Bonds, Series 1991A, 7.000%, 10/01/11 (Alternative Minimum Tax) 1,000 City of Orlando, Florida, No Opt. Call Aa2 1,207,130 Utilities Commission Water and Electric Subordinated Revenue Bonds, Series 1989D, 6.750%, 10/01/17 1,250 Orlando Utilities 10/02 at 102 Aa2 1,316,400 Commission, Florida, Water and Electric Subordinated Revenue Bonds, Series 1992A, 6.000%, 10/01/20 4,000 Pinellas County, Florida, 12/01 at 102 A2 4,100,640 Pollution Control Refunding Revenue Bonds (Florida Power Corporation - Anclote and Bartow Power Plants Project), Series 1991, 7.200%, 12/01/14
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Principal Optional Call Amount (000) Description Provisions* Ratings** Market Value --------------------------------------------------------------------------------- Utilities (continued) $ 5,250 City of Port St. Lucie, 9/11 at 100 AAA $ 5,249,580 Florida, Utility System Revenue Bonds, Series 2001, 5.125%, 9/01/31 2,000 St. Lucie County, 5/02 at 102 Aa3 2,051,900 Florida, Solid Waste Disposal Revenue Bonds (Florida Power and Light Company Project), Series 1992, 6.700%, 5/01/27 (Alternative Minimum Tax) --------------------------------------------------------------------------------- Water and Sewer - 2.7% 705 City of Callaway, Bay 9/06 at 102 AAA 755,034 County, Florida, Wastewater System Revenue Bonds, Series 1996A, 6.000%, 9/01/26 City of Clearwater, Florida, Water and Sewer Revenue Refunding Bonds, Series 1998: 2,155 0.000%, 12/01/12 12/08 at 85 7/16 AAA 1,265,782 1,000 0.000%, 12/01/13 12/08 at 80 15/16 AAA 553,259 1,000 Town of Davie, Florida, 10/02 at 102 AAA 1,044,839 Water and Sewer Improvement and Refunding Revenue Bonds, Series 1992, 6.250%, 10/01/17 600 City of Daytona Beach, 11/02 at 102 AAA 629,483 Florida, Water and Sewer Revenue Bonds, Series 1992, 6.000%, 11/15/14 2,000 Escambia County No Opt. Call AAA 1,043,339 Utilities Authority, Florida, Utility System Revenue Bonds, Series 1992B, 0.000%, 1/01/15 375 City of Jacksonville, 6/02 at 102 A- 385,203 Florida, Water and Sewer Development Revenue Bonds (Jacksonville Suburban Utilities Corporation Project), Series 1992, 6.750%, 6/01/22 (Alternative Minimum Tax) Manatee County, Florida, Public Utilities Revenue Refunding and Improvement Bonds, Series 1991C: 1,850 0.000%, 10/01/08 No Opt. Call AAA 1,388,221 2,800 0.000%, 10/01/09 No Opt. Call AAA 1,991,639 265 Orange County, Florida, 4/02 at 102 AAA 272,981 Water Utilities System Revenue Bonds, Series 1992, 6.250%, 10/01/17 165 City of Tampa, Florida, 10/02 at 101 AAA 170,258 Water and Sewer Systems Revenue Bonds, Series 1992A, 6.000%, 10/01/17 --------------------------------------------------------------------------------- $366,616 Total Investments (cost 343,593,156 $336,566,101) - 96.8% --------------------------------------------------------------------------------- ------------ Other Assets Less 11,223,697 Liabilities - 3.2% ------------------------------------------------------------------------ Net Assets - 100% $354,816,853 ------------------------------------------------------------------------
* Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call pro- visions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which en- sures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. See accompanying notes to financial statements. ------------------------------------------------------------------------------- 9 Statement of Net Assets (Unaudited) Nuveen Florida Municipal Bond Fund November 30, 2001 ---------------------------------------------------------------------- Assets Investments in municipal securities, at market value $343,593,156 Cash 5,501,515 Receivables: Interest 5,635,332 Investments sold 595,608 Shares sold 357,984 Other assets 11,722 ---------------------------------------------------------------------- Total assets 355,695,317 ---------------------------------------------------------------------- Liabilities Payable for shares redeemed 79,202 Accrued expenses: Management fees 158,028 12b-1 distribution and service fees 73,593 Other 89,309 Dividends payable 478,332 ---------------------------------------------------------------------- Total liabilities 878,464 ---------------------------------------------------------------------- Net assets $354,816,853 ---------------------------------------------------------------------- Class A Shares Net assets $246,793,926 Shares outstanding 23,895,596 Net asset value and redemption price per share $ 10.33 Offering price per share (net asset value per share plus maximum sales charge of 4.20% of offering price) $ 10.78 ---------------------------------------------------------------------- Class B Shares Net assets $ 24,755,968 Shares outstanding 2,398,783 Net asset value, offering and redemption price per share $ 10.32 ---------------------------------------------------------------------- Class C Shares Net assets $ 22,922,575 Shares outstanding 2,219,776 Net asset value, offering and redemption price per share $ 10.33 ---------------------------------------------------------------------- Class R Shares Net assets $ 60,344,384 Shares outstanding 5,845,889 Net asset value, offering and redemption price per share $ 10.32 ----------------------------------------------------------------------
See accompanying notes to financial statements. ------------------------------------------------------------------------------- 10 Statement of Operations (Unaudited) Nuveen Florida Municipal Bond Fund Six Months Ended November 30, 2001 ---------------------------------------------------------------------- Investment Income $10,782,335 ---------------------------------------------------------------------- Expenses Management fees 951,682 12b-1 service fees - Class A 247,270 12b-1 distribution and service fees - Class B 114,517 12b-1 distribution and service fees - Class C 81,357 Shareholders' servicing agent fees and expenses 111,004 Custodian's fees and expenses 57,999 Trustees' fees and expenses 4,577 Professional fees 7,407 Shareholders' reports - printing and mailing expenses 30,788 Federal and state registration fees 4,029 Other expenses 9,454 ---------------------------------------------------------------------- Total expenses before custodian fee credit 1,620,084 Custodian fee credit (16,009) ---------------------------------------------------------------------- Net expenses 1,604,075 ---------------------------------------------------------------------- Net investment income 9,178,260 ---------------------------------------------------------------------- Realized and Unrealized Gain (Loss) from Investments Net realized gain from investment transactions 1,061,712 Net change in unrealized appreciation or depreciation of investments (1,565,514) ---------------------------------------------------------------------- Net gain (loss) from investments (503,802) ---------------------------------------------------------------------- Net increase in net assets from operations $ 8,674,458 ----------------------------------------------------------------------
See accompanying notes to financial statements. ------------------------------------------------------------------------------- 11 Statement of Changes in Net Assets (Unaudited) Nuveen Florida Municipal Bond Fund
Six Months Ended Year Ended 11/30/01 5/31/01 ------------------------------------------------------------------------------- Operations Net investment income $ 9,178,260 $ 18,507,624 Net realized gain from investment transactions 1,061,712 1,115,078 Net change in unrealized appreciation or depreciation of investments (1,565,514) 10,862,894 ------------------------------------------------------------------------------- Net increase in net assets from operations 8,674,458 30,485,596 ------------------------------------------------------------------------------- Distributions to Shareholders From undistributed net investment income: Class A (6,508,139) (13,113,017) Class B (544,530) (912,909) Class C (514,812) (864,928) Class R (1,655,428) (3,227,589) ------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (9,222,909) (18,118,443) ------------------------------------------------------------------------------- Fund Share Transactions Net proceeds from sale of shares 29,337,239 38,206,430 Net proceeds from shares issued to shareholders due to reinvestment of distributions 2,776,686 5,298,688 ------------------------------------------------------------------------------- 32,113,925 43,505,118 Cost of shares redeemed (17,869,418) (56,515,449) ------------------------------------------------------------------------------- Net increase (decrease) in net assets from Fund share transactions 14,244,507 (13,010,331) ------------------------------------------------------------------------------- Net increase (decrease) in net assets 13,696,056 (643,178) Net assets at the beginning of period 341,120,797 341,763,975 ------------------------------------------------------------------------------- Net assets at the end of period $354,816,853 $341,120,797 ------------------------------------------------------------------------------- Undistributed net investment income at the end of period $ 121,942 $ 154,037 -------------------------------------------------------------------------------
See accompanying notes to financial statements. ------------------------------------------------------------------------------- 12 Notes to Financial Statements (Unaudited) 1. General Information and Significant Accounting Policies The Nuveen Multistate Trust I (the "Trust") is an open-end investment company registered under the Investment Company Act of 1940, as amended. The Trust comprises the Nuveen Florida Municipal Bond Fund (the "Fund"), among others. The Trust was organized as a Massachusetts business trust on July 1, 1996. The Fund seeks to provide high tax-free income and preservation of capital through investments in a diversified portfolio of quality municipal bonds. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements in accordance with ac- counting principles generally accepted in the United States. Securities Valuation The prices of municipal bonds in the Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Trustees. When price quotes are not readily available (which is usually the case for municipal se- curities), the pricing service establishes fair market value based on yields or prices of municipal bonds of comparable quality, type of issue, coupon, ma- turity and rating, indications of value from securities dealers and general market conditions. If it is determined that market prices for a security are unavailable or inappropriate, the Board of Trustees of the Fund may establish a fair value for the security. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are valued at amortized cost, which approximates market value. Securities Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined on the specific identification method. Securities purchased or sold on a when-issued or delayed delivery ba- sis may have extended settlement periods. Any securities so purchased are sub- ject to market fluctuation during this period. The Fund has instructed the custodian to segregate assets in a separate account with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At November 30, 2001, the Fund had no such outstanding purchase commitments. Investment Income Interest income is determined on the basis of interest accrued, adjusted for amortization of premiums and accretion of discounts on long-term debt securi- ties for financial reporting purposes. Dividends and Distributions to Shareholders Tax-exempt net investment income is declared monthly as a dividend and payment is made or reinvestment is credited to shareholder accounts on the first busi- ness day after month-end. Net realized capital gains and/or market discount from investment transactions are distributed to shareholders not less fre- quently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to shareholders of tax-exempt net investment income, net real- ized capital gains and/or market discount 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 accounting principles generally accepted in the United States. Accordingly, temporary over-distribu- tions as a result of these differences may occur and will be classified as ei- ther distributions in excess of net investment income, distributions in excess of net realized gains and/or distributions in excess of net ordinary taxable income from investment transactions, where applicable. Income Taxes The Fund intends to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net investment income to its shareholders. Therefore, no federal income tax provi- sion is required. Furthermore, the Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal income tax, to retain such tax-exempt status when distributed to shareholders of the Fund. Flexible Sales Charge Program The Fund offers Class A, B, C and R Shares. Class A Shares are sold with a sales charge and incur an annual 12b-1 service fee. Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge ("CDSC") if redeemed within 18 months of purchase. Class B Shares are sold without a sales charge but incur annual 12b-1 distribution and service fees. An investor pur- chasing Class B Shares agrees to pay a CDSC of up to 5% depending upon the length of time the shares are held by the investor (CDSC is reduced to 0% at the end of six years). Class B Shares convert to Class A Shares eight years after purchase. Class C Shares are sold without a sales charge but incur an- nual 12b-1 distribution and service fees. An investor purchasing Class C Shares agrees to pay a CDSC of 1% if Class C Shares are redeemed within one year of purchase. Class R Shares are not subject to any sales charge or 12b-1 distribution or service fees. Class R Shares are available only under limited circumstances. ------------------------------------------------------------------------------- 13 Notes to Financial Statements (Unaudited) (continued) Derivative Financial Instruments The Fund may invest in certain derivative financial instruments including futures, forward, swap and option contracts, and other financial instruments with similar characteristics. Although the Fund is authorized to invest in such financial instruments, and may do so in the future, it did not make any such investments during the six months ended November 30, 2001. Expense Allocation Expenses of the Fund that are not directly attributable to a specific class of shares are prorated among the classes based on the relative net assets of each class. Expenses directly attributable to a class of shares, which presently only include 12b-1 distribution and service fees, are recorded to the specific class. Custodian Fee Credit The Fund has an agreement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on the Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight in- vestments. Use of Estimates The preparation of financial statements in conformity with accounting princi- ples generally accepted in the United States requires management to make esti- mates and assumptions that affect the reported amounts of assets and liabili- ties at the date of the financial statements and the reported amounts of in- creases and decreases in net assets from operations during the reporting peri- od. Actual results may differ from those estimates. Change in Accounting Policy As required, effective June 1, 2001, the Fund has adopted the provisions of the new AICPA Audit and Accounting Guide for Investment Companies and began accreting taxable market discount on debt securities. Prior to June 1, 2001, the Fund did not accrete taxable market discounts on debt securities until they were sold. The cumulative effect of this accounting change had no impact on the total net assets or the net asset values of the Fund, but resulted in an increase in the cost of securities and a corresponding decrease in unrealized appreciation for the Fund of $12,554 based on securities held by the Fund on June 1, 2001. The effect of this change for the six months ended November 30, 2001, was to increase net investment income with a corresponding decrease in net unrealized appreciation for the Fund of $1,279. The Statement of Changes in Net Assets and Financial Highlights for the prior periods have not been restated to re- flect this change in presentation. 2. Fund Shares Transactions in Fund shares were as follows:
Six Months Ended Year Ended 11/30/01 5/31/01 ------------------------ ------------------------ Shares Amount Shares Amount ---------------------------------------------------------------------------- Shares sold: Class A 1,886,289 $ 19,757,545 2,335,701 $ 24,067,026 Class B 350,090 3,654,675 656,986 6,776,367 Class C 397,412 4,160,817 464,931 4,792,735 Class R 168,693 1,764,202 250,444 2,570,302 Shares issued to shareholders due to reinvestment of distributions: Class A 145,440 1,522,571 284,033 2,919,082 Class B 10,695 111,911 19,530 200,725 Class C 10,684 111,879 19,159 197,029 Class R 98,467 1,030,325 192,915 1,981,852 ---------------------------------------------------------------------------- 3,067,770 32,113,925 4,223,699 43,505,118 ---------------------------------------------------------------------------- Shares redeemed: Class A (1,335,777) (13,968,640) (4,508,112) (46,333,933) Class B (152,438) (1,591,648) (239,903) (2,465,509) Class C (119,095) (1,247,772) (274,459) (2,810,993) Class R (101,549) (1,061,358) (477,453) (4,905,014) ---------------------------------------------------------------------------- (1,708,859) (17,869,418) (5,499,927) (56,515,449) ---------------------------------------------------------------------------- Net increase (decrease) 1,358,911 $ 14,244,507 (1,276,228) $(13,010,331) ----------------------------------------------------------------------------
3. Distributions to Shareholders The Fund declared dividend distributions from its tax-exempt net investment income which were paid on December 26, 2001, to shareholders of record on De- cember 7, 2001, as follows: --------------------------- Dividend per share: Class A $.0460 Class B .0395 Class C .0415 Class R .0480 ---------------------------
------------------------------------------------------------------------------- 14 4. Securities Transactions Purchases and sales (including maturities) of investments in long-term munici- pal securities during the six months ended November 30, 2001, aggregated $27,180,465 and $32,376,148, respectively. There were no purchases or sales (including maturities) of investments in short-term municipal securities dur- ing the six months ended November 30, 2001. At November 30, 2001, the cost of investments owned for federal income tax purposes was $336,552,268. At May 31, 2001, the Fund's last fiscal year end, the Fund had an unused capi- tal loss carryforward of $1,138,134 available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforward will expire in the year 2008. 5. Unrealized Appreciation (Depreciation) At November 30, 2001, net unrealized appreciation of investments for federal income tax purposes aggregated $7,040,888 of which $14,564,638 related to ap- preciated securities and $7,523,750 related to depreciated securities. 6. Management Fee and Other Transactions with Affiliates Under the Trust's investment management agreement with Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, the Fund pays an annual management fee, payable monthly, at the rates set forth below which are based upon the average daily net assets of the Fund as fol- lows:
Average Daily Net Assets Management Fee ----------------------------------------------- For the first $125 million .5500 of 1% For the next $125 million .5375 of 1 For the next $250 million .5250 of 1 For the next $500 million .5125 of 1 For the next $1 billion .5000 of 1 For the next $3 billion .4750 of 1 For net assets over $5 billion .4500 of 1 -----------------------------------------------
The management fee compensates the Adviser for overall investment advisory and administrative services, and general office facilities. The Trust pays no com- pensation directly to those of its Trustees who are affiliated with the Ad- viser or to its officers, all of whom receive remuneration for their services to the Trust from the Adviser or its affiliates. The Adviser may voluntarily reimburse expenses from time to time, which may be terminated at any time at its discretion. During the six months ended November 30, 2001, Nuveen Investments (the "Dis- tributor"), a wholly owned subsidiary of The John Nuveen Company, collected sales charges on purchases of Class A Shares of approximately $225,400 all of which were paid out as concessions to authorized dealers. The Distributor also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate authorized dealers for providing services to shareholders relating to their investments. During the six months ended November 30, 2001, the Distributor compensated au- thorized dealers directly with approximately $260,100 in commission advances at the time of purchase. To compensate for commissions advanced to authorized dealers, all 12b-1 service fees collected on Class B Shares during the first year following a purchase, all 12b-1 distribution fees collected on Class B Shares, and all 12b-1 service and distribution fees collected on Class C Shares during the first year following a purchase are retained by the Distrib- utor. During the six months ended November 30, 2001, the Distributor retained approximately $117,400 in such 12b-1 fees. The remaining 12b-1 fees charged to the Fund were paid to compensate authorized dealers for providing services to shareholders relating to their investments. The Distributor also collected and retained approximately $50,300 of CDSC on share redemptions during the six months ended November 30, 2001. 7. Composition of Net Assets At November 30, 2001, the Fund had an unlimited number of $.01 par value shares authorized. Net assets consisted of: ---------------------------- Capital paid- in $347,744,278 Undistributed net investment income 121,942 Accumulated net realized gain (loss) from investment transactions (76,422) Net unrealized appreciation of investments 7,027,055 ---------------------------- Net assets $354,816,853 ----------------------------
------------------------------------------------------------------------------- 15 Financial Highlights (Unaudited) Selected data for a share outstanding throughout each period:
Class (Inception Date) Investment Operations Less Distributions FLORIDA ---------------------------- ------------------------------ Net From Realized/ and in Unrealized Excess of Beginning Net Invest- Net Ending Net Invest- ment Invest- Net Year Ended Asset ment Gain ment Capital Asset Total May 31, Value Income (loss) Total Income Gains Total Value Return(a) ----------------------------------------------------------------------------------------------------------------- Class A (6/90) 2002(e) $10.34 $.27 $ -- $ .27 $(.28) $ -- $(.28) $10.33 2.57% 2001 9.97 .56 .36 .92 (.55) -- (.55) 10.34 9.35 2000 10.76 .54 (.77) (.23) (.55) (.01) (.56) 9.97 (2.17) 1999 10.94 .55 (.14) .41 (.55) (.04) (.59) 10.76 3.78 1998 10.60 .56 .34 .90 (.55) (.01) (.56) 10.94 8.67 1997 10.39 .56 .21 .77 (.56) -- (.56) 10.60 7.59 Class B (2/97) 2002(e) 10.33 .24 (.01) .23 (.24) -- (.24) 10.32 2.19 2001 9.96 .48 .36 .84 (.47) -- (.47) 10.33 8.53 2000 10.77 .46 (.79) (.33) (.47) (.01) (.48) 9.96 (3.10) 1999 10.95 .47 (.14) .33 (.47) (.04) (.51) 10.77 3.05 1998 10.61 .48 .35 .83 (.48) (.01) (.49) 10.95 7.89 1997(d) 10.59 .16 .02 .18 (.16) -- (.16) 10.61 1.70 Class C (9/95) 2002(e) 10.34 .25 (.01) .24 (.25) -- (.25) 10.33 2.30 2001 9.97 .50 .36 .86 (.49) -- (.49) 10.34 8.78 2000 10.77 .48 (.78) (.30) (.49) (.01) (.50) 9.97 (2.79) 1999 10.95 .49 (.14) .35 (.49) (.04) (.53) 10.77 3.22 1998 10.60 .50 .36 .86 (.50) (.01) (.51) 10.95 8.20 1997 10.39 .50 .21 .71 (.50) -- (.50) 10.60 7.00 Class R (2/97) 2002(e) 10.33 .29 (.01) .28 (.29) -- (.29) 10.32 2.68 2001 9.96 .58 .35 .93 (.56) -- (.56) 10.33 9.54 2000 10.76 .56 (.78) (.22) (.57) (.01) (.58) 9.96 (2.07) 1999 10.94 .57 (.14) .43 (.57) (.04) (.61) 10.76 4.01 1998 10.60 .58 .35 .93 (.58) (.01) (.59) 10.94 8.91 1997(d) 10.59 .19 .01 .20 (.19) -- (.19) 10.60 1.93 -----------------------------------------------------------------------------------------------------------------
Class (Inception Date) Ratios/Supplemental Data --------------------------------------------------------------------------------- Before Credit/ After After Credit/ Reimbursement Reimbursement(b) Reimbursement(c) FLORIDA ------------------ ------------------ ------------------ Ratio Ratio Ratio of Net of Net of Net Invest- Invest- Invest- Ratio of ment Ratio of ment Ratio of ment Expenses Income Expenses Income Expenses Income Ending to to to to to to Net Average Average Average Average Average Average Portfolio Year Ended Assets Net Net Net Net Net Net Turnover May 31, (000) Assets Assets Assets Assets Assets Assets Rate -------------------------------------------------------------------------------------------------- Class A (6/90) 2002(e) $246,794 .87%* 5.24%* .87%* 5.24%* .86%* 5.24%* 8% 2001 239,837 .88 5.42 .88 5.42 .87 5.43 22 2000 250,178 1.02 5.27 1.02 5.27 1.01 5.28 18 1999 297,505 .84 5.00 .84 5.00 .84 5.00 19 1998 292,399 .84 5.13 .84 5.13 .84 5.13 14 1997 296,970 .96 5.20 .82 5.34 .82 5.34 54 Class B (2/97) 2002(e) 24,756 1.62* 4.48* 1.62* 4.48* 1.61* 4.49* 8 2001 22,629 1.63 4.67 1.63 4.67 1.62 4.68 22 2000 17,476 1.79 4.52 1.79 4.52 1.78 4.53 18 1999 15,768 1.59 4.25 1.59 4.25 1.59 4.25 19 1998 5,266 1.59 4.35 1.59 4.35 1.59 4.35 14 1997(d) 785 1.58* 4.52* 1.58* 4.52* 1.58* 4.52* 54 Class C (9/95) 2002(e) 22,923 1.42* 4.69* 1.42* 4.69* 1.41* 4.69* 8 2001 19,961 1.43 4.87 1.43 4.87 1.42 4.88 22 2000 17,167 1.59 4.72 1.59 4.72 1.58 4.73 18 1999 16,034 1.39 4.45 1.39 4.45 1.39 4.45 19 1998 7,646 1.39 4.58 1.39 4.58 1.39 4.58 14 1997 5,130 1.46 4.64 1.35 4.75 1.35 4.75 54 Class R (2/97) 2002(e) 60,344 .67* 5.44* .67* 5.44* .66* 5.44* 8 2001 58,694 .68 5.62 .68 5.62 .67 5.63 22 2000 56,943 .83 5.47 .83 5.47 .82 5.48 18 1999 61,496 .64 5.20 .64 5.20 .64 5.20 19 1998 56,428 .64 5.33 .64 5.33 .64 5.33 14 1997(d) 54,247 .64* 5.55* .64* 5.55* .64* 5.55* 54 --------------------------------------------------------------------------------------------------
* Annualized. (a) Total returns are calculated on net asset value without any sales charge and are not annualized. (b) After expense reimbursement from the investment adviser, where applicable. (c) After custodian fee credit and expense reimbursement, where applicable. (d) From commencement of class operations as noted. (e) For the six months ended November 30, 2001. See accompanying notes to financial statements. ----- 16 Fund Information Board of Trustees Robert P. Bremner Lawrence H. Brown Anne E. Impellizzeri Peter R. Sawers William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Fund Manager Nuveen Investment Management 333 West Wacker Drive Chicago, IL 60606 Legal Counsel Morgan, Lewis & Bockius LLP Washington, D.C. Independent Public Accountants Arthur Andersen LLP Chicago, IL Transfer Agent and Shareholder Services J.P. Morgan Investor Services Co. Nuveen Investor Services P.O. Box 660086 Dallas, Texas 75266-0086 (800) 257-8787 NASD Regulation, Inc. provides a Public Disclosure Program which supplies certain information regarding the disciplinary history of NASD members and their associated persons in response to either telephone inquiries at (800) 289-9999 or written inquiries at www.nasdr.com. NASD Regulation, Inc. also provides an investor brochure that includes information describing the Public Disclosure Program. 17 Serving Investors For Generations A 100-Year Tradition of Quality Investments John Nuveen, Sr. [PHOTO OF JOHN NUVEEN SR. APPEARS HERE] Since 1898, John Nuveen & Co. Incorporated has been synonymous with investments that withstand the test of time. In fact, more than 1.3 million investors have trusted Nuveen to help them build and sustain the wealth of a lifetime. Whether your focus is long-term growth, dependable income or sustaining accumulated wealth, Nuveen offers a wide variety of investments and services to help meet your unique circumstances and financial planning needs. We can help you build a better, well-diversified portfolio. Call Your Financial Advisor Today To find out how Nuveen Mutual Funds might round out your investment portfolio, contact your financial advisor today. Or call Nuveen at (800) 257-8787 for more information. Ask your advisor or call for a prospectus, which details risks, fees and expenses. Please read the prospectus carefully before you invest. NUVEEN Investments Nuveen Investments 333 West Wacker Drive Chicago, Illinois 60606-1286 www.nuveen.com Nuveen Investments -------------------------------------------------------------------------------- Nuveen Municipal Bond Funds -------------------------------------------------------------------------------- Semiannual Report dated November 30, 2001 --------------------------------------------- Dependable, tax-free income to help you keep more of what you earn. [PHOTOS APPEAR HERE] Nuveen Maryland Municipal Bond Fund Nuveen Pennsylvania Municipal Bond Fund Nuveen Virginia Municipal Bond Fund -------------------------------------------------------------------------------- Less mail more freedom with online fund reports There is a new way to receive your Nuveen Fund updates faster than ever. Nuveen now can link you with electronic versions of the important financial information we send you by regular mail. By registering for online access via the internet, you will be able to view and save the Fund information you currently receive in the mail. This information can be stored on your computer and retrieved any time. In addition, you can select only the specific pages you want to view or print. With this new service, you'll receive an e-mail notice the moment Fund reports are ready. This notice will contain a link to the report - all you have to do is click your computer mouse on the internet address provided. You'll be saving time, as well as saving your Fund paper, printing and distribution expenses. Registering for electronic access is easy and only takes a few minutes. (see below) The e-mail address you provide is strictly confidential and will not be used for anything other than notifications of shareholder information. And if you decide you don't like receiving your reports electronically, it's a simple process to go back to regular mail delivery. Sign up today -- here's what you need to do... ================================================================================ If your Nuveen Fund dividends are PAID TO YOUR BROKERAGE ACCOUNT, follow the steps outlined below: 1. Go to www.investordelivery.com 2. Look at the address sheet that accompanied this report. Enter the personal 13-character enrollment number imprinted near your name on the address sheet. 3. You'll be taken to a page with several options. Select the New Enrollment- Create screen. Once there, enter your e-mail address (yourID@providerID.com), and a personal, 4-digit PIN of your choice. (Pick a number that's easy to remember.) 4. Click Submit. Confirm the information you just entered is correct, then click Submit again. 5. You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 6. Use this same process if you need to change your registration information or cancel internet viewing. If your Nuveen Fund dividends COME DIRECTLY TO YOU FROM NUVEEN, follow the steps outlined below: 1. Go to www.nuveen.com 2. Select the Access Account tab. Select the E-Report Enrollment section. Click on Enrollment Page. 3. You'll be taken to a screen that asks for your social security number and e- mail address. Fill in this information, then click Enroll. 4. You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 5. Use this same process if you need to change your registration information or cancel internet viewing. Must be predeced by or accompanied by a prospectus. Dear Shareholder, [PHOTO OF TIMOTHY R. SCHWERTFEGER APPEARS HERE] In the aftermath of September 11, the financial markets have reacted with volatility and uncertainty as investors attempt to better understand how the U.S. and world economies are likely to perform in the months ahead. It's too soon to tell what the long-term impact will be on the markets or your Fund, but one thing that is increasingly clear to us is that a diversified portfolio that includes high quality municipal bonds can leave you well positioned to reduce overall investment volatility. For example, during the period covered by this report, your Nuveen Fund continued to meet its primary objective of providing you with dependable, tax- free income to help you keep more of what you earn. Detailed information on your Fund's performance can be found in the Fund Spotlight later in this report. In addition to providing you with high current income exempt from federal taxes, your Nuveen Fund also features several characteristics that can help make it an essential part of your overall investment strategy. These include careful research, constant surveillance and broad trading execution by Nuveen's seasoned portfolio management team, with every action designed to supplement income, improve Fund structure, better adapt to current market conditions or increase diversification. In turbulent times like these, prudent investors understand the importance of diversification, balance, and risk management, all attributes your Nuveen Fund can bring to your portfolio. For more than 100 years, Nuveen has specialized in offering quality investments such as these Nuveen Funds to those seeking to accumulate and preserve wealth and establish a lasting legacy. Our mission continues to be to assist you and your financial advisor by offering the investment services and products that can help you invest well and leave your mark for future generations. We thank you for continuing to choose Nuveen Investments as your partner as you work toward that goal. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board January 15, 2002 ================================================================================
Dear Shareholder............................... 1 Market Commentary.............................. 2 Maryland Spotlight............................. 3 Pennsylvania Spotlight......................... 4 Virginia Spotlight............................. 5 Portfolio of Investments....................... 6 Statement of Net Assets........................ 21 Statement of Operations........................ 22 Statement of Changes in Net Assets............. 23 Notes to Financial Statements.................. 25 Financial Highlights........................... 31 Fund Information............................... 37
Page 1 -------------------------------------------------------------------------------- Market Commentary Nuveen Research ================================================================================ Continued uncertainty and volatile equity markets characterized the economic landscape over the six-months ended November 30, 2001. Many observers now believe that the United States has been in a recession since the spring. Since our last report, unemployment has risen, corporate capital expenditures have dropped and indicators of consumer sentiment have declined. The Federal Reserve has responded by cutting the fed funds rate 11 times through the course of 2001 to eventually reach 1.75%, the lowest level in 40 years. Partially as a result of these lower rates and weaker economic conditions, the general municipal market performed well over this reporting period. The yield of the widely followed Bond Buyer 20 Municipal Bond Index fell to 5.15% as of November 30, 2001, compared with 5.28% six months earlier. Low interest rates and a slowing economy also caused new municipal issuance to grow, with new issue supply topping $252 billion for the 11 months ended November 30, 2001, a 37% increase over the same period in 2000. Some of this increase in volume may have been driven by economic conditions that made it more difficult for municipalities to finance projects from current revenues. The erosion of tax bases caused by the declining economy, increased expenses for Medicaid, additional unemployment compensation claims, and unanticipated expenses related to homeland security may cause issuers to continue feeling the pinch in revenues as we head into 2002. Some recent surveys of governors and state budget officers indicate that state budget shortfalls for fiscal year 2002 could rise to between $40 and $50 billion. While the rainy-day funds which states built up over the prolonged growth during the mid- to late-1990s should leave states in a better position than they were in the previous recession of 1991-92, some officials now fear that this recession, and thus also state budget shortfalls, may be deeper than last time. As we look toward the next six to twelve months, we anticipate there may be some degree of improvement in the economy, given the government's focus on stimulating consumer demand. However, since many consumers are already carrying large amounts of personal debt, near-term recovery may be muted until corporate capital expenditures start to rebound. Absent global deflation, we expect the fed funds rate to remain stable or gradually to drift higher as we move through 2002. Page 2
-------------------------------------------------------------------------------- Fund Spotlight As of November 30, 2001 Nuveen Maryland Municipal Bond Fund ================================================================================ Quick Facts A Shares B Shares C Shares R Shares -------------------------------------------------------------------------------- NAV $ 10.25 $ 10.26 $ 10.25 $ 10.28 -------------------------------------------------------------------------------- Latest Dividend/1/ $0.0400 $0.0335 $0.0355 $0.0420 -------------------------------------------------------------------------------- CUSIP 67065L831 67065L823 67065L815 67065L799 -------------------------------------------------------------------------------- Inception Date 9/94 3/97 9/94 12/91 --------------------------------------------------------------------------------
Annualized Total Returns as of 11/30/01/2/ A Shares NAV Offer 1-Year 8.28% 3.79% ------------------------------------------------------ 5-Year 4.70% 3.81% ------------------------------------------------------ Since Inception 5.74% 5.27% ------------------------------------------------------ B Shares w/o CDSC w/CDSC 1-Year 7.47% 3.47% ------------------------------------------------------ 5-Year 3.95% 3.78% ------------------------------------------------------ Since Inception 5.14% 5.14% ------------------------------------------------------ C Shares NAV 1-Year 7.72% ------------------------------------------------------ 5-Year 4.13% ------------------------------------------------------ Since Inception 5.07% ------------------------------------------------------ R Shares NAV 1-Year 8.47% ------------------------------------------------------ 5-Year 4.92% ------------------------------------------------------ Since Inception 5.98% ------------------------------------------------------ Tax-Free Yields as of 11/30/01 A Shares NAV Offer SEC 30-Day Yield 4.21% 4.03% ------------------------------------------------------ Taxable-Equivalent Yield/3/ 6.38% 6.11% ------------------------------------------------------ B Shares NAV SEC 30-Day Yield 3.45% ------------------------------------------------------ Taxable-Equivalent Yield/3/ 5.23% ------------------------------------------------------ C Shares NAV SEC 30-Day Yield 3.65% ------------------------------------------------------ Taxable-Equivalent Yield/3/ 5.53% ------------------------------------------------------ R Shares NAV SEC 30-Day Yield 4.41% ------------------------------------------------------ Taxable-Equivalent Yield/3/ 6.68% ------------------------------------------------------ Annualized Total Returns as of 9/30/01/2/ A Shares NAV Offer 1-Year 9.95% 5.33% ------------------------------------------------------ 5-Year 5.13% 4.22% ------------------------------------------------------ Since Inception 5.81% 5.33% ------------------------------------------------------ B Shares w/o CDSC w/CDSC 1-Year 9.12% 5.12% ------------------------------------------------------ 5-Year 4.38% 4.21% ------------------------------------------------------ Since Inception 5.20% 5.20% ------------------------------------------------------ C Shares NAV 1-Year 9.36% ------------------------------------------------------ 5-Year 4.55% ------------------------------------------------------ Since Inception 5.14% ------------------------------------------------------ R Shares NAV 1-Year 10.12% ------------------------------------------------------ 5-Year 5.35% ------------------------------------------------------ Since Inception 6.05% Top Five Sectors/4/ Housing (Multifamily) 19% ------------------------------------------------------ Tax Obligation (Limited) 14% ------------------------------------------------------ Education and Civic Organizations 12% ------------------------------------------------------ Healthcare 11% ------------------------------------------------------ Housing (Single Family) 9% ------------------------------------------------------ Portfolio Statistics Total Net Assets $85.8 million ------------------------------------------------------ Average Duration 6.44 ------------------------------------------------------ Average Effective Maturity 19.55 years ------------------------------------------------------
Returns are historical and do not guarantee future performance. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Performance of classes will differ. For additional information, please see the fund prospectus. 1 Paid December 3, 2001. This is the latest monthly dividend declared during the period ended November 30, 2001. 2 Class R share returns are actual. Class A, B and C share returns are actual for the period since class inception; returns prior to class inception are Class R share returns adjusted for differences in sales charges and expenses, which are primarily differences in distribution and service fees. Class A shares have a 4.2% maximum sales charge. Class B shares have a CDSC that begins at 5% for redemptions during the first year after purchase and declines periodically to 0% over the following five years. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within one year, which is not reflected in the one-year total return. 3 Based on the SEC 30-Day Yield and a combined federal and state income tax rate of 34%. 4 As a percentage of total bond holdings as of November 30, 2001. Holdings are subject to change. Page 3 Fund Spotlight As of November 30, 2001 Nuveen Pennsylvania Municipal Bond Fund
Quick Facts A Shares B Shares C Shares R Shares ----------------------------------------------------------------------------------------- NAV $ 10.25 $ 10.27 $ 10.24 $ 10.25 ----------------------------------------------------------------------------------------- Latest Dividend/1/ $0.0435 $0.0375 $0.0390 $0.0455 ----------------------------------------------------------------------------------------- CUSIP 67065L740 67065L732 67065L724 67065L716 ----------------------------------------------------------------------------------------- Inception Date 10/86 2/97 2/94 2/97 -----------------------------------------------------------------------------------------
Annualized Total Returns as of 11/30/01/2/ A Shares NAV Offer 1-Year 9.62% 5.03% ------------------------------------------------------------------ 5-Year 5.37% 4.47% ------------------------------------------------------------------ 10-Year 6.39% 5.93% ------------------------------------------------------------------ B Shares w/o CDSC w/CDSC 1-Year 8.83% 4.83% ------------------------------------------------------------------ 5-Year 4.63% 4.47% ------------------------------------------------------------------ 10-Year 5.89% 5.89% ------------------------------------------------------------------ C Shares NAV 1-Year 9.05% ------------------------------------------------------------------ 5-Year 4.79% ------------------------------------------------------------------ 10-Year 5.81% ------------------------------------------------------------------ R Shares NAV 1-Year 9.95% ------------------------------------------------------------------ 5-Year 5.58% ------------------------------------------------------------------ 10-Year 6.50% ------------------------------------------------------------------ Tax-Free Yields as of 11/30/01 A Shares NAV Offer SEC 30-Day Yield 4.62% 4.43% ------------------------------------------------------------------ Taxable-Equivalent Yield/3/ 6.84% 6.56% ------------------------------------------------------------------ B Shares NAV SEC 30-Day Yield 3.86% ------------------------------------------------------------------ Taxable-Equivalent Yield/3/ 5.72% ------------------------------------------------------------------ C Shares NAV SEC 30-Day Yield 4.06% ------------------------------------------------------------------ Taxable-Equivalent Yield/3/ 6.01% ------------------------------------------------------------------ R Shares NAV SEC 30-Day Yield 4.82% ------------------------------------------------------------------ Taxable-Equivalent Yield/3/ 7.14% ------------------------------------------------------------------ Annualized Total Returns as of 9/30/01/2/ A Shares NAV Offer 1-Year 10.85% 6.18% ------------------------------------------------------------------ 5-Year 5.81% 4.90% ------------------------------------------------------------------ 10-Year 6.47% 6.01% ------------------------------------------------------------------ B Shares w/o CDSC w/CDSC 1-Year 10.05% 6.05% ------------------------------------------------------------------ 5-Year 5.08% 4.92% ------------------------------------------------------------------ 10-Year 5.97% 5.97% ------------------------------------------------------------------ C Shares NAV ------------------------------------------------------------------ 1-Year 10.27% ------------------------------------------------------------------ 5-Year 5.24% ------------------------------------------------------------------ 10-Year 5.89% ------------------------------------------------------------------ R Shares NAV 1-Year 11.06% ------------------------------------------------------------------ 5-Year 6.02% ------------------------------------------------------------------ 10-Year 6.57% ------------------------------------------------------------------ Top Five Sectors/4/ Education and Civic Organizations 20% ------------------------------------------------------------------ U.S. Guaranteed 14% ------------------------------------------------------------------ Healthcare 13% ------------------------------------------------------------------ Long-Term Care 12% ------------------------------------------------------------------ Transportation 8% ------------------------------------------------------------------ Portfolio Statistics Total Net Assets $143.3 million ------------------------------------------------------------------ Average Duration 8.01 ------------------------------------------------------------------ Average Effective Maturity 21.16 years ------------------------------------------------------------------ Returns are historical and do not guarantee future performance. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Performance of classes will differ. For additional information, please see the fund prospectus. 1 Paid December 3, 2001. This is the latest monthly dividend declared during the period ended November 30, 2001. 2 Class A share returns are actual. Class B, C and R share returns are actual for the period since class inception; returns prior to class inception are Class A share returns adjusted for differences in sales charges and expenses, which are primarily differences in distribution and service fees. Class A shares have a 4.2% maximum sales charge. Class B shares have a CDSC that begins at 5% for redemptions during the first year after purchase and declines periodically to 0% over the following five years. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within one year, which is not reflected in the one-year total return. 3 Based on the SEC 30-Day Yield and a combined federal and state income tax rate of 32.5%. 4 As a percentage of total bond holdings as of November 30, 2001. Holdings are subject to change. Page 4
-------------------------------------------------------------------------------- Fund Spotlight As of November 30, 2001 Nuveen Virginia Municipal Bond Fund ================================================================================ Quick Facts A Shares B Shares C Shares R Shares -------------------------------------------------------------------------------- NAV $10.74 $10.73 $10.72 $10.73 -------------------------------------------------------------------------------- Latest Dividend/1/ $0.0440 $0.0375 $0.0390 $0.0460 -------------------------------------------------------------------------------- CUSIP 67065L690 67065L682 67065L674 67065L666 -------------------------------------------------------------------------------- Inception Date 3/86 2/97 10/93 2/97 --------------------------------------------------------------------------------
Annualized Total Returns as of 11/30/01/2/ A Shares NAV Offer 1-Year 7.75% 3.21% -------------------------------------------------------------------------------- 5-Year 5.27% 4.37% -------------------------------------------------------------------------------- 10-Year 6.38% 5.93% -------------------------------------------------------------------------------- B Shares w/o CDSC w/CDSC 1-Year 6.98% 2.98% -------------------------------------------------------------------------------- 5-Year 4.49% 4.32% -------------------------------------------------------------------------------- 10-Year 5.85% 5.85% -------------------------------------------------------------------------------- C Shares NAV 1-Year 7.11% -------------------------------------------------------------------------------- 5-Year 4.67% -------------------------------------------------------------------------------- 10-Year 5.79% -------------------------------------------------------------------------------- R Shares NAV 1-Year 7.99% -------------------------------------------------------------------------------- 5-Year 5.48% -------------------------------------------------------------------------------- 10-Year 6.49% -------------------------------------------------------------------------------- Tax-Free Yields as of 11/30/01 A Shares NAV Offer -------------------------------------------------------------------------------- SEC 30-Day Yield 4.13% 3.95% -------------------------------------------------------------------------------- Taxable-Equivalent Yield/3/ 6.31% 6.03% -------------------------------------------------------------------------------- B Shares NAV SEC 30-Day Yield 3.37% -------------------------------------------------------------------------------- Taxable-Equivalent Yield/3/ 5.15% -------------------------------------------------------------------------------- C Shares NAV SEC 30-Day Yield 3.57% -------------------------------------------------------------------------------- Taxable-Equivalent Yield/3/ 5.45% -------------------------------------------------------------------------------- R Shares NAV SEC 30-Day Yield 4.33% -------------------------------------------------------------------------------- Taxable-Equivalent Yield/3/ 6.61% -------------------------------------------------------------------------------- Annualized Total Returns as of 9/30/01/2/ A Shares NAV Offer 1-Year 8.80% 4.20% -------------------------------------------------------------------------------- 5-Year 5.70% 4.80% -------------------------------------------------------------------------------- 10-Year 6.47% 6.01% -------------------------------------------------------------------------------- B Shares w/o CDSC w/CDSC 1-Year 8.02% 4.02% -------------------------------------------------------------------------------- 5-Year 4.93% 4.76% -------------------------------------------------------------------------------- 10-Year 5.94% 5.94% -------------------------------------------------------------------------------- C Shares NAV 1-Year 8.16% -------------------------------------------------------------------------------- 5-Year 5.10% -------------------------------------------------------------------------------- 10-Year 5.87% -------------------------------------------------------------------------------- R Shares NAV 1-Year 9.05% -------------------------------------------------------------------------------- 5-Year 5.90% -------------------------------------------------------------------------------- 10-Year 6.57% -------------------------------------------------------------------------------- Top Five Sectors/4/ U.S. Guaranteed 18% -------------------------------------------------------------------------------- Water and Sewer 12% -------------------------------------------------------------------------------- Education and Civic Organizations 11% -------------------------------------------------------------------------------- Transportation 10% -------------------------------------------------------------------------------- Tax Obligation (Limited) 9% -------------------------------------------------------------------------------- Portfolio Statistics Total Net Assets $224.0 million -------------------------------------------------------------------------------- Average Duration 5.87 -------------------------------------------------------------------------------- Average Effective Maturity 16.57 years --------------------------------------------------------------------------------
Returns are historical and do not guarantee future performance. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Performance of classes will differ. For additional information, please see the fund prospectus. 1 Paid December 3, 2001. This is the latest monthly dividend declared during the period ended November 30, 2001. 2 Class A share returns are actual. Class B, C and R share returns are actual for the period since class inception; returns prior to class inception are Class A share returns adjusted for differences in sales charges and expenses, which are primarily differences in distribution and service fees. Class A shares have a 4.2% maximum sales charge. Class B shares have a CDSC that begins at 5% for redemptions during the first year after purchase and declines periodically to 0% over the following five years. Class B shares automatically convert to Class A shares eight years after purchase. Class C shares have a 1% CDSC for redemptions within one year, which is not reflected in the one-year total return. 3 Based on the SEC 30-Day Yield and a combined federal and state income tax rate of 34.5%. 4 As a percentage of total bond holdings as of November 30, 2001. Holdings are subject to change. Page 5 Portfolio of Investments (Unaudited) Nuveen Maryland Municipal Bond Fund November 30, 2001
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ------------------------------------------------------------------------------- Basic Materials - 1.8% $ 1,500 Mayor and City Council of 4/02 at 103 AA- $ 1,565,010 Baltimore, Maryland, Port Facilities Revenue Bonds (Consolidation Coal Sales Company Project), Series 1984B, 6.500%, 10/01/11 ------------------------------------------------------------------------------- Capital Goods - 0.6% 500 Northeast Maryland Waste 1/09 at 101 BBB 486,315 Disposal Authority, Resource Recovery Revenue Bonds (Baltimore RESCO Retrofit Project), Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) ------------------------------------------------------------------------------- Consumer Staples - 1.8% The Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed Bonds, Series 2000: 1,180 5.750%, 7/01/20 7/10 at 100 Aa3 1,242,375 250 6.000%, 7/01/26 7/10 at 100 Aa3 264,495 ------------------------------------------------------------------------------- Education and Civic Organizations - 12.3% 1,000 Maryland Economic 6/09 at 102 Baa3 1,020,150 Development Corporation, Student Housing Revenue Bonds (Collegiate Housing Foundation - Salisbury Project), Series 1999A, 6.000%, 6/01/19 Maryland Economic Development Corporation, Student Housing Revenue Bonds (Collegiate Housing Foundation - University Courtyard Project), Series 1999A: 1,250 5.750%, 6/01/19 6/09 at 102 Baa3 1,247,950 250 5.750%, 6/01/24 6/09 at 102 Baa3 248,905 600 Maryland Economic 7/11 at 101 A 621,660 Development Corporation, Student Housing Revenue Bonds (University Village at Sheppard Pratt), Series 2001, 5.875%, 7/01/21 500 Maryland Economic 7/11 at 100 AAA 525,590 Development Corporation, Utility Infrastructure Revenue Bonds (University of Maryland - College Park Project), 2001 Series, 5.375%, 7/01/16 500 Maryland Health and Higher 7/08 at 102 BBB- 506,120 Educational Facilities Authority, Educational Facilities Leasehold Mortgage Revenue Bonds, McLean School Issue, 6.000%, 7/01/31 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Bullis School Issue, Series 2000: 250 5.250%, 7/01/25 1/11 at 101 AAA 255,153 500 5.250%, 7/01/30 1/11 at 101 AAA 509,025 Maryland Health and Higher Educational Facilities Authority, Educational Facilities Mortgage Revenue Bonds, Green Acres School Issue, Series 1998: 665 5.300%, 7/01/18 7/06 at 102 BBB- 642,204 1,525 5.300%, 7/01/28 7/06 at 102 BBB- 1,423,176 1,000 Maryland Health and Higher 7/08 at 102 AA 1,010,330 Educational Facilities Authority, Refunding Revenue Bonds, Johns Hopkins University Issue, Series 1998, 5.125%, 7/01/20 1,500 Morgan State University, No Opt. Call AAA 1,734,900 Maryland, Academic Fees and Auxiliary Facilities Fees Revenue Refunding Bonds, 1993 Series, 6.100%, 7/01/20 750 University of Puerto Rico, 6/10 at 100 AAA 810,405 University System Revenue Bonds, Series O, 5.750%, 6/01/19 ------------------------------------------------------------------------------- Healthcare - 10.8% 2,165 City of Gaithersburg, No Opt. Call AAA 2,547,945 Maryland, Nursing Home Revenue Refunding Bonds (Shady Grove Adventist Nursing and Rehabilitation Center Project), Series 1992A, 6.500%, 9/01/12 2,000 Maryland Health and Higher 6/09 at 101 A 2,025,240 Educational Facilities Authority, Kaiser Permanente Revenue Bonds, 1998 Series A, 5.375%, 7/01/15 750 Maryland Health and Higher 7/10 at 101 Baa1 822,720 Educational Facilities Authority, Revenue Bonds, University of Maryland Medical System Issue, Series 2000, 6.750%, 7/01/30 1,000 Maryland Health and Higher 7/03 at 102 AAA 1,017,840 Educational Facilities Authority, Refunding Revenue Bonds, Francis Scott Key Medical Center Issue, Series 1993, 5.000%, 7/01/13 500 Maryland Health and Higher 7/11 at 100 A+ 479,440 Educational Facilities Authority, Revenue Bonds (Greater Baltimore Medical Center), Series 2001, 5.000%, 7/01/34 (WI, settling 12/06/01) Prince George's County, Maryland, Project and Refunding Revenue Bonds, Dimensions Health Corporation Issue, Series 1994: 155 4.750%, 7/01/03 No Opt. Call B3 104,558 295 4.850%, 7/01/04 No Opt. Call B3 191,163 2,000 5.375%, 7/01/14 7/04 at 102 B3 1,017,080 1,000 Puerto Rico Industrial, 1/05 at 102 AAA 1,088,940 Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, Hospital Revenue Bonds (Hospital Auxilio Mutuo Obligated Group Project), 1995 Series A, 6.250%, 7/01/16
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Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ------------------------------------------------------------------------------- Housing/Multifamily - 18.8% $ 750 Baltimore County, 10/08 at 102 AAA $ 741,938 Maryland, Mortgage Revenue Refunding Bonds (GNMA Collateralized - Cross Creek Apartments Project), Series 1998A, 5.250%, 10/20/33 1,000 Baltimore City, Maryland, 12/02 at 102 AAA 1,031,720 Mortgage Revenue Refunding Bonds (GNMA Collateralized - Tindeco Wharf Apartments Project), Series 1992, 6.700%, 12/20/28 1,000 Howard County, Maryland, 7/02 at 102 AAA 1,025,360 Mortgage Revenue Refunding Bonds (FHA- Insured Mortgage Loan - Howard Hills Townhouses Project), Series 1992, 6.400%, 7/01/24 2,000 Howard County, Maryland, 7/02 at 104 Baa2 2,093,820 Multifamily Housing Revenue Refunding Bonds (Chase Glen Project), Series 1994, 7.000%, 7/01/24 (Mandatory put 7/01/04) Community Development Administration, Department of Housing and Community Development, Maryland, Multifamily Housing Revenue Bonds (Insured Mortgage Loans), 1992 Series D: 700 6.700%, 5/15/27 5/02 at 102 Aa3 717,619 500 6.750%, 5/15/33 5/02 at 102 Aa3 512,650 1,000 Community Development 1/09 at 101 Aa2 990,200 Administration, Department of Housing and Community Development, Maryland, Housing Revenue Bonds, 1999 Series A, 5.350%, 7/01/41 (Alternative Minimum Tax) 1,000 Community Development 1/10 at 100 Aa2 1,045,050 Administration, Department of Housing and Community Development, Maryland, Housing Revenue Bonds, Series 1999B, 6.250%, 7/01/32 (Alternative Minimum Tax) 1,000 Community Development 10/08 at 101 1/2 Aaa 980,280 Administration, Department of Housing and Community Development, Maryland, Multifamily Development Revenue Bonds (Auburn Manor Project), Series 1998A, 5.300%, 10/01/28 (Alternative Minimum Tax) 1,000 Montgomery County Housing 7/05 at 102 Aa2 1,038,300 Opportunities Commission, Maryland, Multifamily Housing Revenue Bonds, 1995 Series A, 6.000%, 7/01/20 2,420 Montgomery County Housing 7/08 at 101 Aaa 2,374,915 Opportunities Commission, Maryland, Multifamily Housing Development Bonds, 1998 Series A, 5.250%, 7/01/29 (Alternative Minimum Tax) 1,550 Prince George's County 1/02 at 102 AAA 1,582,767 Housing Authority, Maryland, Mortgage Revenue Refunding Bonds (FHA-Insured - New Keystone Apartments), Series A, 6.800%, 7/01/25 860 Prince George's County 5/02 at 100 AAA 860,267 Housing Authority, Maryland, Mortgage Revenue Refunding Bonds (GNMA Collateralized - Foxglenn Apartments Project), Series 1998A, 5.450%, 11/20/14 (Alternative Minimum Tax) 1,000 Prince George's County 9/09 at 102 AAA 1,038,690 Housing Authority, Maryland, Mortgage Revenue Bonds (GNMA Collateralized - University Landing at Langley Apartments Project), Series 1999, 6.100%, 3/20/41 (Alternative Minimum Tax) ------------------------------------------------------------------------------- Housing/Single Family - 9.3% 1,145 Community Development 9/09 at 100 Aa2 1,195,609 Administration, Department of Housing and Community Development, Maryland, Residential Revenue Bonds, 2000 Series B, 6.150%, 9/01/32 (Alternative Minimum Tax) 495 Community Development 3/10 at 100 Aa2 523,685 Administration, Department of Housing and Community Development, Maryland, Residential Revenue Bonds, 2000 Series D, 6.250%, 9/01/32 (Alternative Minimum Tax) 1,480 Community Development 9/10 at 100 Aa2 1,506,877 Administration, Department of Housing and Community Development, Maryland, Residential Revenue Bonds, Series H, 5.800%, 9/01/32 (Alternative Minimum Tax) 1,485 Montgomery County Housing 7/04 at 102 Aa2 1,568,843 Opportunities Commission, Maryland, Single Family Mortgage Revenue Bonds, 1994 Series A, 6.600%, 7/01/14 2,885 Prince George's County 8/07 at 102 AAA 2,965,693 Housing Authority, Maryland, FHLMC/FNMA/GNMA Collateralized Single Family Mortgage Revenue Bonds, Series 1997, 5.750%, 8/01/26 (Alternative Minimum Tax) 200 Prince George's County No Opt. Call AAA 210,654 Housing Authority, Maryland, FHLMC/FNMA/GNMA Collateralized Single Family Mortgage Revenue Bonds, Series 2000A, 6.150%, 8/01/19 ------------------------------------------------------------------------------- Long-Term Care - 3.2% Carroll County, Maryland, Revenue Bonds (Fairhaven and Copper Ridge), EMA Obligated Group Issue, Refunding Series 1999A: 500 5.500%, 1/01/19 1/09 at 101 AA 512,365 500 5.625%, 1/01/25 1/09 at 101 AA 515,755
-------------------------------------------------------------------------------- 7 Portfolio of Investments (Unaudited) Nuveen Maryland Municipal Bond Fund (continued) November 30, 2001
Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ------------------------------------------------------------------------------- Long-Term Care (continued) $ 1,725 Maryland Economic 4/11 at 102 N/R $ 1,758,155 Development Corporation, Revenue Bonds (Health and Mental Hygiene Providers Facilities Acquisition Program), Series 1996A, 7.625%, 4/01/21 ------------------------------------------------------------------------------- Tax Obligation/General - 8.0% 1,000 Baltimore County 6/11 at 101 AAA 1,002,170 Metropolitan District, Maryland, General Obligation Bonds, 67th Issue, 5.000%, 6/01/25 500 Villages of Lake 7/10 at 102 AA 508,320 Linganore Community Development Authority, Frederick County, Maryland, Special Obligation Bonds, Series 2001A, 5.600%, 7/01/20 3,000 State of Maryland, State No Opt. Call Aaa 3,895,140 and Local Facilities, General Obligation Bonds, PA-816-R RITES 2001, 13.083%, 3/01/15 (IF) 1,000 Montgomery County, 1/10 at 101 AAA 1,117,190 Maryland, General Obligation Consolidated Public Improvement Bonds of 2000, Series A, 5.750%, 1/01/19 300 Northern Mariana Islands 6/10 at 100 A 312,663 Commonwealth, General Obligation Bonds, Series 2000A, 6.000%, 6/01/20 ------------------------------------------------------------------------------- Tax Obligation/Limited - 14.1% 1,250 Anne Arundel County, 7/09 at 102 N/R 1,337,288 Maryland, Special Obligation Bonds (Arundel Mills Project), Series 1999, 7.100%, 7/01/29 1,000 Mayor and City Council of 10/07 at 102 AAA 1,015,810 Baltimore, Maryland, Certificates of Participation (Emergency Telecommunications Facilities), Series 1997A, 5.000%, 10/01/17 1,500 City of Baltimore, 9/08 at 102 AAA 1,508,865 Maryland, Mayor and City Council of Baltimore, Convention Center Refunding Revenue Bonds, Series 1998, 5.000%, 9/01/19 1,110 Maryland Department of 6/10 at 101 Aaa 1,200,321 Housing and Community Development, Community Development Administration, Infrastructure Financing Bonds (MBIA-Insured), 2000 Series A, 5.875%, 6/01/30 900 Maryland Department of 10/10 at 101 AA+ 935,037 Transportation, Certificates of Participation, Series 2000, 5.500%, 10/15/18 (Alternative Minimum Tax) 1,760 Maryland Stadium 12/04 at 102 AAA 1,869,912 Authority, Convention Center Expansion Lease Revenue Bonds, Series 1994, 5.875%, 12/15/12 500 New Baltimore City Board 11/10 at 100 AA+ 518,120 of School Commissioners, Maryland, School System Revenue Bonds, Series 2000, 5.125%, 11/01/15 1,000 Puerto Rico Highway and 7/10 at 101 AAA 1,102,880 Transportation Authority, Transportation Revenue Bonds, Series B, 5.750%, 7/01/16 1,500 Virgin Islands Public 10/10 at 101 BBB- 1,624,515 Finance Authority, Revenue Bonds (Gross Receipts Taxes Loan Note), Series 1999A, 6.500%, 10/01/24 1,000 Washington Suburban 6/07 at 100 AAA 1,011,020 Sanitary District, Montgomery and Prince George's Counties, Maryland, General Construction Bonds of 1997, 5.125%, 6/01/19 ------------------------------------------------------------------------------- Transportation - 3.2% 1,000 Maryland Transportation 7/02 at 100 A+ 1,020,810 Authority, Revenue Bonds (Transportation Facilities Projects), Series 1992, 5.750%, 7/01/15 1,000 Puerto Rico Ports 6/06 at 102 BB 825,210 Authority, Special Facilities Revenue Bonds (American Airlines, Inc. Project), 1996 Series A, 6.250%, 6/01/26 (Alternative Minimum Tax) 900 Washington Metropolitan 1/04 at 102 AAA 924,732 Area Transit Authority, District of Columbia, Gross Revenue Transit Refunding Bonds, Series 1993, 5.250%, 7/01/14 ------------------------------------------------------------------------------- U.S. Guaranteed - 5.0% 600 City of Baltimore, 10/02 at 100 AAA 623,688 Maryland, Mayor and City Council of Baltimore, General Obligation Consolidated Public Improvement Bonds of 1992, Series A, 6.500%, 10/15/12 (Pre-refunded to 10/15/02) 700 Maryland National Capital 7/02 at 102 AA*** 730,884 Park and Planning Commission, Prince George's County, Maryland, General Obligation Park Acquisition and Development Bonds, Series L-2, 6.125%, 7/01/10 (Pre-refunded to 7/01/02) 345 Maryland Transportation No Opt. Call AAA 403,291 Authority, Revenue Bonds (Transportation Facilities Project), First Series Refunding, 6.800%, 7/01/16 500 Commonwealth of Puerto 7/02 at 101 1/2 AAA 521,025 Rico, General Obligation Public Improvement Bonds of 1992, 6.600%, 7/01/13 (Pre-refunded to 7/01/02) Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, 2000 Series A: 750 5.500%, 10/01/20 10/10 at 101 AAA 794,048 1,175 5.500%, 10/01/40 10/10 at 101 AAA 1,229,790
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Principal Optional Call Market Amount (000) Description Provisions* Ratings** Value ------------------------------------------------------------------------------ Utilities - 4.2% $ 1,000 Maryland Energy Financing 9/05 at 102 N/R $ 1,049,800 Administration, Limited Obligation Congeneration Revenue Bonds (AES Warrior Run Project), Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) 1,000 Montgomery County, 6/03 at 102 AAA 1,038,080 Maryland, Solid Waste System Revenue Bonds, 1993 Series A, 5.875%, 6/01/13 (Alternative Minimum Tax) 1,500 Prince George's County, 1/03 at 102 A1 1,555,005 Maryland, Pollution Control Revenue Refunding Bonds (Potomac Electric Project), 1993 Series, 6.375%, 1/15/23 ------------------------------------------------------------------------------ Water and Sewer - 4.8% 1,000 City of Baltimore, No Opt. Call AAA 1,014,210 Maryland, Mayor and City Council of Baltimore, Project and Refunding Revenue Bonds (Water Projects), Series 1994-A, 5.000%, 7/01/24 750 City of Baltimore, 7/08 at 101 AAA 749,970 Maryland, Mayor and City Council of Baltimore, Project and Refunding Revenue Bonds (Water Projects), Series 1998-A, 5.000%, 7/01/28 1,500 City of Baltimore, 7/06 at 101 AAA 1,547,580 Maryland, Mayor and City Council of Baltimore, Project and Refunding Revenue Bonds (Water Projects), Series 1996-A, 5.500%, 7/01/26 City of Baltimore, Maryland, Mayor and City Council of Baltimore, Project and Refunding Revenue Bonds (Water Projects), Series 2000-A: 500 6.000%, 7/01/15 7/10 at 100 AAA 558,754 250 6.000%, 7/01/19 7/10 at 100 AAA 275,422 ------------------------------------------------------------------------------ $81,570 Total Investments (cost 84,021,451 $82,171,650) - 97.9% ------------------------------------------------------------------------------ ------------ Short-Term Investments - 0.9% $ 750 Puerto Rico Government VMIG-1 750,000 Development Bank, Revenue Refunding Bonds, Series 1985, Variable Rate Demand Bonds, 1.170%, 12/01/15+ ------------ --------------------------------------------------------------------- Other Assets Less 1,033,257 Liabilities - 1.2% --------------------------------------------------------------------- Net Assets - 100% $85,804,708 ---------------------------------------------------------------------
* Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call pro- visions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing suffi- cient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securi- ties. N/R Investment is not rated. (IF) Inverse floating rate security. (WI) Security purchased on a when-issued basis. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term securi- ty. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. ------------------------------------------------------------------------------- 9 Portfolio of Investments (Unaudited) Nuveen Pennsylvania Municipal Bond Fund November 30, 2001
Principal Optional Call Amount (000) Description Provisions* Ratings** Market Value ------------------------------------------------------------------------------- Capital Goods - 2.2% $ 3,000 Delaware County Industrial 1/08 at 102 BBB $ 3,090,060 Development Authority, Pennsylvania, Refunding Revenue Bonds (Resource Recovery Facility), Series 1997A, 6.200%, 7/01/19 ------------------------------------------------------------------------------- Education and Civic Organizations - 20.0% 3,000 Allegheny County Higher 2/06 at 102 Baa3 3,059,040 Educational Building Authority, Pennsylvania, College Revenue Bonds (Robert Morris College), Series 1996A, 6.250%, 2/15/26 Allegheny County Higher Educational Building Authority, Pennsylvania, College Revenue Refunding Bonds (Robert Morris College), Series 1998A: 1,190 5.500%, 5/01/15 No Opt. Call Baa3 1,186,037 1,500 6.000%, 5/01/28 No Opt. Call Baa3 1,520,880 Chester County Health and Educational Facilities Authority, Pennsylvania, College Revenue Bonds (Immaculata College), Series 1998: 1,300 5.600%, 10/15/18 10/08 at 102 BBB- 1,278,888 2,300 5.625%, 10/15/27 10/08 at 102 BBB- 2,209,081 4,515 Delaware County Authority, 10/08 at 100 BBB- 4,185,495 Pennsylvania, College Revenue Refunding Bonds (Neumann College), Series 1998A, 5.375%, 10/01/26 6,075 Delaware County Authority, 7/10 at 102 N/R 6,106,165 Pennsylvania, Student Housing Revenue Bonds (Collegiate Housing Foundation - Eastern College Project), Series 2000A, 8.250%, 7/01/29 New Wilmington Municipal Authority, Lawrence County, Pennsylvania, College Revenue Bonds (Westminster College), Series 1998: 750 5.300%, 3/01/18 3/08 at 100 Baa1 726,128 200 5.350%, 3/01/28 3/08 at 100 Baa1 191,110 4,150 Pennsylvania Higher 4/08 at 102 BBB- 4,079,948 Educational Facilities Authority, Geneva College Revenue Bonds, Series 1998, 5.375%, 4/01/15 3,000 Pennsylvania Higher 5/09 at 100 A- 3,152,610 Educational Facilities Authority, Drexel University Revenue Bonds, Series 1999, 6.000%, 5/01/29 1,000 Pennsylvania Higher 7/11 at 101 AAA 973,570 Educational Facilities Authority, Temple University Revenue Bonds, First Series 2001, 5.000%, 7/15/31 ------------------------------------------------------------------------------- Energy - 2.6% 3,500 Pennsylvania Economic 12/04 at 102 BBB 3,754,240 Development Financing Authority, Revenue Bonds (Sun Company, Inc., R&M Project), Series 1994A, 7.600%, 12/01/24 (Alternative Minimum Tax) ------------------------------------------------------------------------------- Healthcare - 12.7% 2,000 Allegheny County Hospital 11/10 at 102 B+ 2,098,180 Development Authority, Pennsylvania, Health System Revenue Bonds (West Penn Allegheny Health System), Series 2000B, 9.250%, 11/15/30 2,500 Chester County Health and 5/08 at 101 AA- 2,474,625 Educational Facilities Authority, Pennsylvania, Health System Revenue Bonds (Jefferson Health System), Series 1997B, 5.375%, 5/15/27 Columbia County Hospital Authority, Pennsylvania, Healthcare Revenue Bonds (Bloomsburg Hospital Obligated Group Project), Series 1999: 3,735 5.850%, 6/01/24 6/09 at 100 BBB- 3,214,229 1,000 5.900%, 6/01/29 6/09 at 100 BBB- 850.490 1,585 City of Jeannette Health 11/06 at 102 BBB+ 1,558,483 Services Authority, Pennsylvania, Hospital Revenue Bonds (Jeannette District Memorial Hospital), Series 1996A, 6.000%, 11/01/18 1,985 Philadelphia Hospitals and 11/02 at 102 BBB 1,940,556 Higher Educational Facilities Authority, Pennsylvania, Hospital Revenue Refunding Bonds (Chestnut Hill Hospital), 6.500%, 11/15/22 2,500 Philadelphia Hospitals and 7/07 at 102 BBB 2,352,800 Higher Educational Facilities Authority, Pennsylvania, Hospital Revenue Refunding Bonds (Jeanes Hospital Project), 5.875%, 7/01/17 City of Pottsville Hospital Authority, Pennsylvania, Hospital Revenue Bonds (Pottsville Hospital and Warne Clinic), Series 1998: 1,265 5.250%, 7/01/10 No Opt. Call BBB- 1,173,756 2,250 5.625%, 7/01/24 7/08 at 100 BBB- 1,912,568
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Principal Optional Call Amount (000) Description Provisions* Ratings** Market Value ------------------------------------------------------------------------------- Healthcare (continued) $ 230 Sayre Healthcare 3/02 at 101 AAA $ 236,923 Facilities Authority, Pennsylvania, Revenue Bonds (Guthrie Healthcare System), Series 1991A, 7.100%, 3/01/17 350 Washington County Hospital 4/02 at 102 A2 364,032 Authority, Pennsylvania, Hospital Revenue Bonds (Monongahela Valley Hospital, Inc. Project), Series 1992, 6.750%, 12/01/08 ------------------------------------------------------------------------------- Housing/Multifamily - 0.3% 500 Bucks County Redevelopment 2/02 at 100 AAA 501,075 Authority, Pennsylvania, Mortgage Revenue Refunding Bonds (Warminster Heights Section 8 Assisted - FHA Insured Project), 1992 Series A, 6.875%, 8/01/23 ------------------------------------------------------------------------------- Housing/Single Family - 6.6% 1,090 Allegheny County No Opt. Call Aaa 191,023 Residential Finance Authority, Pennsylvania, Single Family Mortgage Revenue Bonds, 1994 Series Z, 0.000%, 5/01/27 (Alternative Minimum Tax) 2,500 Pennsylvania Housing 4/06 at 102 AA+ 2,665,825 Finance Agency, Single Family Mortgage Revenue Bonds, Series 1996-50A, 6.000%, 10/01/13 2,000 Pennsylvania Housing 4/06 at 102 AA+ 2,081,540 Finance Agency, Single Family Mortgage Revenue Bonds, Series 1996-51, 6.375%, 4/01/28 (Alternative Minimum Tax) 1,565 Pittsburgh Urban 8/05 at 102 A 1,600,228 Redevelopment Authority, Pennsylvania, Home Improvement Loan Bonds, 1995 Series A, 6.375%, 8/01/18 (Alternative Minimum Tax) 995 Pittsburgh Urban 4/06 at 102 AAA 1,026,870 Redevelopment Authority, Pennsylvania, Mortgage Revenue Bonds, Series D, 6.250%, 10/01/17 765 Pittsburgh Urban 4/07 at 102 AAA 801,789 Redevelopment Authority, Pennsylvania, Mortgage Revenue Bonds, 1997 Series A, 6.200%, 10/01/21 (Alternative Minimum Tax) 1,055 Pittsburgh Urban 4/04 at 102 AAA 1,096,219 Redevelopment Authority, Pennsylvania, Mortgage Revenue Bonds, 1994 Series A, 6.625%, 4/01/22 (Alternative Minimum Tax) ------------------------------------------------------------------------------- Long-Term Care - 12.4% 2,830 Allegheny County 10/05 at 100 AAA 3,039,363 Residential Finance Authority, Pennsylvania, Mortgage Revenue Bonds (FHA-Insured Mortgage - Ladies Grand Army of the Republic Health Facility Project), 1995 Series G, 6.350%, 10/01/36 1,000 Butler County Industrial 6/03 at 102 A+ 1,008,970 Development Authority, Pennsylvania, Health Center Revenue Refunding Bonds (Pittsburgh Lifetime Care Community - Sherwood Oaks Project), Series 1993, 5.750%, 6/01/16 Chester County Health and Educational Facilities Authority, Pennsylvania, Mortgage Revenue Refunding Bonds (Tel Hai Obligated Group Project), Series 1998: 1,000 5.400%, 6/01/18 12/08 at 100 BBB 875,890 1,100 5.500%, 6/01/25 12/08 at 100 BBB 944,845 2,000 Montgomery County Higher 1/06 at 101 BBB 1,941,260 Educational and Health Authority, Pennsylvania, Mortgage Revenue Bonds (Waverly Heights Project), Series 1996, 6.375%, 1/01/26 9,230 Philadelphia Hospitals and 7/10 at 102 Aa2 9,947,079 Higher Educational Facilities Authority, Pennsylvania, FHA-Insured Mortgage Revenue Bonds (Northwood Project), Series 2000A, 6.375%, 7/01/40 ------------------------------------------------------------------------------- Tax Obligation/General - 5.8% Chichester School District, Delaware County, Pennsylvania, General Obligation Bonds, Series 1999: 3,125 0.000%, 3/01/26 No Opt. Call AAA 851,188 3,125 0.000%, 3/01/27 No Opt. Call AAA 806,344 3,125 0.000%, 3/01/28 No Opt. Call AAA 762,281 3,125 0.000%, 3/01/29 No Opt. Call AAA 720,875 Girard School District, Erie County, Pennsylvania, General Obligation Bonds, Series 1999B: 1,645 0.000%, 11/01/26 No Opt. Call AAA 422,617 1,635 0.000%, 11/01/28 No Opt. Call AAA 375,821 4,875 McKeesport Area School No Opt. Call AAA 1,413,360 District, Allegheny County, Pennsylvania, General Obligation Bonds, Series 1997D, 0.000%, 10/01/24 2,195 Montour School District, No Opt. Call AAA 1,214,120 Allegheny County, Pennsylvania, General Obligation Bonds, Series 1993B, 0.000%, 1/01/14 1,745 Plum Borough School 9/11 at 100 AAA 1,756,971 District, Allegheny County, Pennsylvania, General Obligation Bonds, Series 2001, 5.200%, 9/15/23
-------------------------------------------------------------------------------- 11 Portfolio of Investments (Unaudited) Nuveen Pennsylvania Municipal Bond Fund (continued) November 30, 2001
Principal Optional Call Amount (000) Description Provisions* Ratings** Market Value ------------------------------------------------------------------------------- Tax Obligation/Limited - 5.6% $ 1,000 Allegheny County 12/10 at 101 N/R $ 1,069,110 Redevelopment Authority, Pennsylvania, Tax Increment Finance Bonds (Waterfront Project), Series 2000A, 6.300%, 12/15/18 5,000 Harrisburg Parking 9/11 at 100 Aaa 4,920,950 Authority, Pennsylvania, Guaranteed Revenue Refunding Bonds, Series 2001J, 5.000%, 9/01/22 1,390 Pennsylvania No Opt. Call AAA 1,565,960 Intergovernmental Cooperative Authority, Special Tax Revenue Bonds (City of Philadelphia Funding Program), Series 1994, 7.000%, 6/15/05 500 Pennsylvania Turnpike 7/11 at 101 AAA 488,265 Commission, Registration Fee Revenue Bonds, Series 2001, 5.000%, 7/15/31 ------------------------------------------------------------------------------- Transportation - 8.3% 50 Pennsylvania Turnpike 12/02 at 102 AAA 50,891 Commission, Turnpike Revenue Bonds, Series 1992O, 5.500%, 12/01/17 3,000 Philadelphia, 6/07 at 102 AAA 3,013,380 Pennsylvania, Airport Revenue Bonds (Philadelphia Airport System), Series 1997B, 5.400%, 6/15/27 (Alternative Minimum Tax) Pittsburgh and Allegheny County Sports and Exhibition Authority, Pennsylvania, Parking Revenue Bonds, Series 2001A: 1,000 5.300%, 12/01/21 12/06 at 100 Aaa 1,005,270 4,500 5.375%, 12/01/30 12/06 at 100 Aaa 4,529,385 3,000 Public Parking Authority, 6/10 at 100 AAA 3,243,480 Pennsylvania, Parking System Revenue Bonds, Series 2000, 6.000%, 12/01/24 ------------------------------------------------------------------------------- U.S. Guaranteed - 14.2% 1,525 Allegheny County Hospital No Opt. Call AAA 1,845,814 Development Authority, Pennsylvania, Hospital Revenue Bonds (Allegheny Valley Hospital Sublease), Series Q, 7.000%, 8/01/15 2,850 Deer Lakes School 1/04 at 100 AAA 3,049,301 District, Allegheny County, Pennsylvania, General Obligation Bonds, Series 1995, 6.350%, 1/15/14 (Pre-refunded to 1/15/04) 1,320 Delaware County Authority, 12/06 at 102 Aaa 1,402,685 Health Facilities Revenue Bonds (Mercy Health Corporation of Southeastern Pennsylvania Obligated Group), Series 1996, 6.000%, 12/15/26 2,000 McKeesport Area School 10/06 at 100 AAA 2,227,620 District, Allegheny County, Pennsylvania, General Obligation Bonds, Series 1996A, 6.000%, 10/01/25 (Pre-refunded to 10/01/06) 750 Northeastern Pennsylvania 2/05 at 100 AAA 829,013 Hospital and Education Authority, College Revenue Bonds (Guaranteed) (Luzerne County Community College), 6.625%, 8/15/15 (Pre-refunded to 2/15/05) 2,000 Pennsylvania Economic 12/05 at 102 A-*** 2,346,420 Development Financing Authority, MacMillan Bloedel Limited Partnership, Exempt Facilities Revenue Bonds, Series 1995, 7.600%, 12/01/20 (Alternative Minimum Tax) (Pre- refunded to 12/01/05) 1,500 Pennsylvania 6/05 at 100 AAA 1.689,885 Intergovernmental Cooperative Authority, Special Tax Revenue Bonds (City of Philadelphia Funding Program), Series 1994, 7.000%, 6/15/14 (Pre-refunded to 6/15/05) 250 Philadelphia Authority for 5/02 at 102 N/R*** 259,708 Industrial Development, Pennsylvania, Revenue Bonds (National Board of Medical Examiners Project), Series 1992, 6.750%, 5/01/12 (Pre- refunded to 5/01/02) City of Philadelphia, Pennsylvania, Gas Works Revenue Bonds, Fourteenth Series: 645 6.375%, 7/01/14 (Pre- 7/03 at 102 AAA 697,445 refunded to 7/01/03) 450 6.375%, 7/01/26 (Pre- 7/03 at 102 Aaa 486,144 refunded to 7/01/03) 650 City of Philadelphia, No Opt. Call AAA 795,841 Pennsylvania, Gas Works Revenue Bonds, Twelfth Series B, 7.000%, 5/15/20 2,000 Philadelphia Hospitals and No Opt. Call BBB+*** 2,219,920 Higher Educational Facilities Authority, Pennsylvania, Hospital Revenue Refunding Bonds (Pennsylvania Hospital), Series 1996, 6.250%, 7/01/06 500 St. Mary Hospital 7/02 at 102 AAA 523,115 Authority, Bucks County, Pennsylvania, Hospital Revenue Bonds (Franciscan Health System/St. Mary Hospital of Langhorne Inc.), Series 1992A, 6.500%, 7/01/12 (Pre- refunded to 7/01/02) 935 Borough of West View No Opt. Call AAA 1,318,397 Municipal Authority, Allegheny County, Pennsylvania, Special Obligation Bonds, Series 1985A, 9.500%, 11/15/14 600 City of Wilkes-Barre 12/02 at 102 N/R*** 644,304 General Municipal Authority, Pennsylvania, College Misericordia Revenue Bonds, Refunding Series 1992A, 7.750%, 12/01/12 (Pre-refunded to 12/01/02) ------------------------------------------------------------------------------- Utilities - 4.4% 665 Greater Lebanon Refuse 11/02 at 100 A- 686,227 Authority, Lebanon County, Pennsylvania, Solid Waste Revenue Bonds, Series 1992, 7.000%, 11/15/04
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Principal Amount (000) Description ---------------------------------------------------------------------------------------------------------------------------------- Utilities (continued) Optional Call Market Provisions* Ratings** Value ----------------------------------------------------------------------------------------------------------------------------------- $ 550 Lehigh County Industrial Development Authority, Pennsylvania, Pollution 8/05 at 102 AAA $ 592,246 Control Revenue Refunding Bonds (Pennsylvania Power and Light Company Project), Series 1995A, 6.150%, 8/01/29 1,000 Northampton County Industrial Development Authority, Pennsylvania, 7/05 at 102 AAA 1,076,380 Pollution Control Revenue Refunding Bonds (Metropolitan Edison Company Project), 1995 Series A, 6.100%, 7/15/21 1,580 City of Philadelphia, Pennsylvania, Gas Works Revenue Bonds (1998 General 7/09 at 101 AAA 1,532,774 Ordinance), Second Series, 5.000%, 7/01/29 City of Philadelphia, Pennsylvania, Gas Works Revenue Bonds, Fourteenth Series: 1,355 6.375%, 7/01/14 7/03 at 102 AAA 1,450,648 950 6.375%, 7/01/26 7/03 at 102 BBB 958,996 ----------------------------------------------------------------------------------------------------------------------------------- Water and Sewer - 5.9% 5,000 Delaware County Industrial Development Authority, Pennsylvania, Water 10/11 at 100 AAA 4,966,399 Facilities Revenue Bonds (Philadelphia Water Company Project), Series 2001, 5.350%, 10/01/31 950 Luzerne County Industrial Development Authority, Exempt Facilities Revenue 12/02 at 102 A3 986,498 Bonds (Pennsylvania Gas and Water Company Project), 1992 Series B, 7.125%, 12/01/22 (Alternative Minimum Tax) 1,500 Luzerne County Industrial Development Authority, Exempt Facilities Revenue 12/04 at 102 AAA 1,680,254 Refunding Bonds (Pennsylvania Gas and Water Company Project), 1994 Series A, 7.000%, 12/01/17 (Alternative Minimum Tax) 760 South Wayne County Water and Sewer Authority, Pennsylvania, Revenue 4/02 at 102 N/R 781,712 Refunding Sewer Bonds, 8.200%, 4/15/13 (Alternative Minimum Tax) ----------------------------------------------------------------------------------------------------------------------------------- $158,830 Total Investments (cost $139,500,373) - 101.0% 144,669,884 ----------------------------------------------------------------------------------------------------------------------------------- ------------ Other Assets Less Liabilities - (1.0)% (1,396,658) --------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $143,273,226 ---------------------------------------------------------------------------------------------------------------------
* Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call pro- visions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing suffi- cient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securi- ties. N/R Investment is not rated. See accompanying notes to financial statements. ----- 13 Portfolio of Investments (Unaudited) Nuveen Virginia Municipal Bond Fund November 30, 2001
Principal Optional Call Amount (000) Description Provisions* Ratings** Market Value ------------------------------------------------------------------------------- Basic Materials - 5.9% $ 2,500 Industrial Development 2/08 at 102 Baa3 $ 2,355,500 Authority of Bedford County, Virginia, Industrial Development Refunding Revenue Bonds (Nekoosa Packaging Corporation), Series 1998, 5.600%, 12/01/25 (Alternative Minimum Tax) 2,000 Industrial Development 12/09 at 101 Baa3 2,038,620 Authority of Bedford County, Virginia, Industrial Development Refunding Revenue Bonds (Nekoosa Packaging Corporation), Series 1999, 6.300%, 12/01/25 (Alternative Minimum Tax) 2,000 Industrial Development 9/04 at 102 Baa1 2,096,220 Authority of Covington- Alleghany County, Virginia, Pollution Control Facilities Refunding Revenue Bonds (Westvaco Corporation Project), Series 1994, 6.650%, 9/01/18 3,545 Industrial Development 4/04 at 102 BBB 3,626,925 Authority of the Isle of Wight County, Virginia, Solid Waste Disposal Facilities Revenue Bonds (Union Camp Corporation Project), Series 1994, 6.550%, 4/01/24 (Alternative Minimum Tax) 3,000 Industrial Development 5/07 at 102 BBB 3,021,150 Authority of the Isle of Wight County, Virginia, Solid Waste Disposal Facilities Revenue Bonds (Union Camp Corporation Project), Series 1997, 6.100%, 5/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------- Capital Goods - 1.8% 2,250 Industrial Development No Opt. Call BBB 2,228,130 Authority of Charles City County, Virginia, Solid Waste Disposal Facility Revenue Refunding Bonds (USA Waste of Virginia, Inc. Project), Series 1999, 4.875%, 2/01/09 (Alternative Minimum Tax) 2,000 Industrial Development No Opt. Call BB- 1,791,920 Authority of Henrico County, Virginia, Solid Waste Disposal Revenue Bonds (Browning-Ferris Industries of South Atlantic, Inc. Project), Series 1996A, 5.450%, 1/01/14 (Alternative Minimum Tax) ------------------------------------------------------------------------------- Consumer Staples - 0.9% 1,415 The Children's Trust Fund, 7/10 at 100 Aa3 1,489,797 Puerto Rico, Tobacco Settlement Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 500 Industrial Development 4/07 at 101 A+ 518,045 Authority of James City County, Virginia, Sewage and Solid Waste Disposal Facilities Revenue Bonds (Anheuser Busch Project), Series 1997, 6.000%, 4/01/32 (Alternative Minimum Tax) ------------------------------------------------------------------------------- Education and Civic Organizations - 11.1% 2,000 Industrial Development 1/09 at 101 A1 2,110,600 Authority of the City of Alexandria, Virginia, Educational Facilities Revenue Bonds (Episcopal High School), Series 1999, 5.875%, 1/01/29 1,500 Industrial Development 10/10 at 101 AAA 1,627,560 Authority of the City of Alexandria, Virginia, Fixed Rate Revenue Bonds (Institute for Defense Analyses), Series 2000A, 5.900%, 10/01/30 Industrial Development Authority of Danville, Virginia, Student Housing Revenue Bonds (Collegiate Housing Foundation - Averett College Project), Series 1999A: 680 6.875%, 6/01/20 6/09 at 102 N/R 662,674 1,910 7.000%, 6/01/30 6/09 at 102 N/R 1,858,373 500 Medical College of Hampton 5/02 at 102 A- 511,695 Roads, Virginia, General Revenue Refunding Bonds, Series 1991A, 6.875%, 11/15/16 Industrial Development Authority of Loudoun County, Virginia, University Facilities Revenue Refunding Bonds (George Washington University), Series 1992: 500 6.250%, 5/15/12 5/02 at 102 A2 518,325 2,225 6.250%, 5/15/22 5/02 at 102 A2 2,279,557 1,000 City of Portsmouth, 5/07 at 102 AA 964,910 Virginia, Golf Course System Revenue Bonds, Series 1998, 5.000%, 5/01/23 2,000 Park Authority of Prince 10/09 at 101 A3 2,104,540 William County, Virginia, Park Facilities Revenue Refunding and Improvement Bonds, Series 1999, 6.000%, 10/15/28 1,500 Industrial Development 7/11 at 100 Baa3 1,510,020 Authority of Rockbridge County, Virginia, Horse Center Revenue and Refunding Bonds, Series 2001C, 6.850%, 7/15/21 1,250 Industrial Development 10/03 at 102 Baa3 1,252,213 Authority of Rockingham County, Virginia, Educational Facilities Revenue Bonds (Bridgewater College), Series 1993, 6.000%, 10/01/23
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Principal Optional Call Amount (000) Description Provisions* Ratings** Market Value ------------------------------------------------------------------------------- Education and Civic Organizations (continued) Industrial Development Authority of Staunton, Virginia, Educational Facilities Revenue Bonds (Mary Baldwin College): $ 350 5.900%, 11/01/03 No Opt. Call N/R $ 362,660 370 6.000%, 11/01/04 No Opt. Call N/R 388,467 1,250 University of Puerto 6/10 at 100 AAA 1,350,675 Rico, University System Revenue Bonds, Series O, 5.750%, 6/01/19 2,000 Virginia College Building 10/02 at 102 BBB+ 2,066,600 Authority, Educational Facilities Revenue Bonds (Roanoke College Project), Series 1992 Refunding, 6.625%, 10/15/12 3,250 Virginia College Building 4/03 at 102 A+ 3,354,520 Authority, Educational Facilities Revenue Refunding Bonds (Hampton University Project), Series 1993, 5.750%, 4/01/14 420 Virginia College Building 1/04 at 102 AA 444,507 Authority, Educational Facilities Revenue Bonds (Washington and Lee University Project), Series 1994, 5.750%, 1/01/14 1,250 Virginia College Building 7/08 at 101 AA 1,213,738 Authority, Educational Facilities Revenue and Refunding Bonds (Marymount University Project), Series 1998, 5.125%, 7/01/28 Industrial Development Authority of the City of Winchester, Virginia, Educational Facilities First Mortgage Revenue Bonds (Shenandoah University Project), Series 1994: 180 6.700%, 10/01/14 10/04 at 102 AA 198,923 95 6.750%, 10/01/19 10/04 at 102 AA 105,461 ------------------------------------------------------------------------------- Healthcare - 6.9% 2,060 Industrial Development 10/03 at 102 A2 2,137,374 Authority of Albemarle County, Virginia, Hospital Refunding Revenue Bonds (Martha Jefferson Hospital), Series 1993, 5.875%, 10/01/13 2,000 Industrial Development 6/07 at 102 AAA 2,007,980 Authority of the City of Fredericksburg, Virginia, Hospital Facilities Revenue Refunding Bonds (MediCorp Health System Obligated Group), Series 1996, 5.250%, 6/15/23 1,110 Industrial Development 12/05 at 102 BBB 1,080,974 Authority of Giles County, Virginia, Exempt Facility Revenue Bonds (Hoechst Celanese Project), Series 1995, 5.950%, 12/01/25 (Alternative Minimum Tax) 3,250 Industrial Development No Opt. Call AAA 3,775,233 Authority of Hanover County, Virginia, Hospital Revenue Bonds (Memorial Regional Medical Center Project at Hanover Medical Park) (Guaranteed by Bon Secours Health System Obligated Group), Series 1995, 6.375%, 8/15/18 2,000 Industrial Development 8/05 at 102 AAA 2,026,680 Authority of Hanover County, Virginia, Hospital Revenue Bonds (Bon Secours Health System Obligated Group - Bon Secours Health System Projects), Series 1995, 5.500%, 8/15/25 1,250 Industrial Development 1/07 at 101 A+ 1,304,037 Authority of Henry County, Virginia, Hospital Revenue Bonds (Memorial Hospital of Martinsville and Henry County), Series 1997, 6.000%, 1/01/27 1,250 Industrial Development 1/08 at 101 A+ 1,228,050 Authority of the City of Lynchburg, Virginia, Healthcare Facilities Revenue and Refunding Bonds (Centra Health), Series 1998, 5.200%, 1/01/28 1,500 Medical College of 7/08 at 102 AAA 1,482,570 Virginia Hospitals Authority, General Revenue Bonds, Series 1998, 5.125%, 7/01/23 400 Industrial Development 2/02 at 100 AA- 402,104 Authority of Richmond, Virginia, Medical Facility Revenue Bonds (Metropolitan Blood Service), 7.125%, 2/01/11 ------------------------------------------------------------------------------- Housing/Multifamily - 6.8% 1,000 Industrial Development 5/10 at 100 Aaa 1,045,520 Authority of Arlington County, Virginia, Multifamily Housing Revenue Bonds (Patrick Henry Apartments Project), Series 2000, 6.050%, 11/01/32 (Alternative Minimum Tax) (Mandatory put 11/01/20) 1,105 Industrial Development 11/10 at 102 AAA 1,145,752 Authority of Arlington County, Virginia, Multifamily Housing Mortgage Revenue Bonds (Berkeley Apartments), Series 2000, 5.850%, 12/01/20 (Alternative Minimum Tax) 1,200 Redevelopment and Housing 9/06 at 102 AAA 1,241,400 Authority of Fairfax County, Virginia, FHA- Insured Mortgage Housing for the Elderly Revenue Refunding Bonds (Little River Glen), Series 1996, 6.100%, 9/01/26 3,665 Economic Development 7/09 at 102 AAA 3,894,502 Authority of Henrico County, Virginia, Beth Sholom Assisted Living Revenue Bonds (GNMA Mortgage-Backed Securities Financing), Series 1999A, 6.000%, 7/20/39 1,000 Redevelopment and Housing 4/10 at 102 AAA 1,039,520 Authority of Lynchburg, Virginia, Vistas Revenue Bonds (GNMA Mortgage- Backed Securities Financing), Series 2000A, 6.200%, 1/20/40 (Alternative Minimum Tax)
-------------------------------------------------------------------------------- 15 Portfolio of Investments (Unaudited) Nuveen Virginia Municipal Bond Fund (continued) November 30, 2001
Principal Optional Call Amount (000) Description Provisions* Ratings** Market Value ------------------------------------------------------------------------------- Housing/Multifamily (continued) $ 2,000 Redevelopment and Housing 1/02 at 102 AAA $ 2,027,620 Authority of Newport News, Virginia, Mortgage Revenue Refunding Bonds (West Apartments), Series A, 6.550%, 7/01/24 480 Redevelopment and Housing 7/02 at 104 Baa2 499,800 Authority of Suffolk, Virginia, Multifamily Housing Revenue Refunding Bonds (Chase Heritage at Dulles Project), Series 1994, 7.000%, 7/01/24 (Mandatory put 7/01/04) 3,000 Development Authority of 10/14 at 102 N/R 3,012,870 City of Virginia Beach, Virginia, Multifamily Residential Rental Housing Revenue Bonds (Hamptons and Hampton Court Apartments Project), Series 1999, 7.500%, 10/01/39 700 Virginia Housing 5/02 at 101 AA+ 714,826 Development Authority, Multifamily Housing Bonds, Series 1991F, 7.000%, 5/01/04 610 Virginia Housing 6/06 at 100 AA+ 600,447 Development Authority, Rental Housing Bonds, 2001 Series L, 5.000%, 12/01/20 ------------------------------------------------------------------------------- Housing/Single Family - 5.0% 2,000 Virginia Housing 7/11 at 100 AAA 2,000,000 Development Authority, Commonwealth Mortgage Refunding Bonds, Series H, Subseries H-1, 5.350%, 7/01/31 (WI, settling 12/27/01) 2,000 Virginia Housing 7/05 at 102 AA+ 2,069,020 Development Authority, Commonwealth Mortgage Bonds, 1995 Series C, Subseries C-3, 6.125%, 7/01/22 (Alternative Minimum Tax) 6,000 Virginia Housing 1/08 at 102 AA+ 5,968,860 Development Authority, Commonwealth Mortgage Bonds, 1996 Series G, Subseries G-1, 5.300%, 1/01/22 (Alternative Minimum Tax) 1,050 Virginia Housing 7/10 at 100 AA+ 1,113,725 Development Authority, Commonwealth Mortgage Bonds, 2001 Series A, Subseries A-1, 5.800%, 7/01/12 (Alternative Minimum Tax) ------------------------------------------------------------------------------- Long-Term Care - 1.2% 1,000 Health Center Commission 12/06 at 102 AAA 1,020,680 for Chesterfield County, Virginia, Mortgage Revenue Bonds (GNMA Collateralized - Lucy Corr Nursing Home Project), Series 1996, 5.875%, 12/01/21 500 Redevelopment and Housing 12/06 at 103 AAA 519,285 Authority of Fairfax County, Virginia, Multifamily Housing Revenue Refunding Bonds (FHA-Insured Mortage Loan - Paul Spring Retirement Center), Series 1996A, 6.000%, 12/15/28 1,085 Industrial Development 7/03 at 102 AAA 1,112,722 Authority of Henrico County, Virginia, Nursing Facility Insured-Mortgage Refunding Revenue Bonds (Cambridge Manor Nursing Home), Series 1993, 5.875%, 7/01/19 ------------------------------------------------------------------------------- Tax Obligation/General - 5.0% 480 County of Chesterfield, 1/11 at 100 AAA 480,845 Virginia, General Obligation Public Improvement Bonds, Series 2001, 5.000%, 1/15/21 1,000 City of Franklin, 1/12 at 101 AAA 990,040 Virginia, General Obligation Public Improvement Bonds (City Projects), Series 2001B, 5.000%, 1/15/24 City of Hampton, Virginia, General Obligation Public Improvement Bonds of 2000: 1,500 5.750%, 2/01/17 2/10 at 102 AA 1,638,570 1,685 6.000%, 2/01/20 2/10 at 102 AA 1,869,086 2,630 County of Loudoun, 1/10 at 101 AA+ 2,678,392 Virginia, General Obligation Public Improvement Bonds, Series 2000B, 5.250%, 1/01/21 1,555 Northern Mariana Islands 6/10 at 100 A 1,620,637 Commonwealth, General Obligation Bonds, Series 2000A, 6.000%, 6/01/20 1,000 County of Pittsylvania, 3/11 at 102 A 988,440 Virginia, General Obligation Bonds, Series 2001, 5.125%, 3/01/23 1,000 City of Virginia Beach, 6/11 at 101 AA+ 1,001,300 Virginia, General Obligation Public Improvement Bonds, Series 2001, 5.000%, 6/01/20 ------------------------------------------------------------------------------- Tax Obligation/Limited - 9.5% 2,000 Industrial Development 7/06 at 102 AAA 2,081,020 Authority of Brunswick County, Virginia, Correctional Facility Lease Revenue Bonds, Series 1996, 5.500%, 7/01/17 860 Economic Development 9/09 at 102 AA 953,061 Authority of Fairfax County, Virginia, Parking Revenue Bonds (Vienna II Metrorail Station Project), 1999 First Series, 6.000%, 9/01/18
-------------------------------------------------------------------------------- 16
Principal Optional Call Amount (000) Description Provisions* Ratings** Market Value -------------------------------------------------------------------------------- Tax Obligation/Limited (continued) $ 1,000 Convention Center 6/10 at 101 A- $ 1,081,430 Authority of Greater Richmond, Virginia, Hotel Tax Revenue Bonds (Convention Center Expansion Project), Series 2000, 6.125%, 6/15/20 1,000 Regional Jail Authority 7/06 at 102 AAA 1,029,700 of Hampton Roads, Virginia, Regional Jail Facility Revenue Bonds, Series 1996A, 5.500%, 7/01/24 1,000 City of Harrisonburg, 12/10 at 102 AAA 1,065,930 Virginia, Public Recreational Facility General Obligation and Revenue Bonds, Series 2000, 5.750%, 12/01/29 2,000 Industrial Development 8/05 at 102 AA 2,294,760 Authority of Henrico County, Virginia, Public Facility Lease Revenue Bonds (Henrico County Regional Jail Project), Series 1994, 7.000%, 8/01/13 750 Loudoun County, No Opt. Call AAA 874,028 Virginia, Certificates of Participation, Series E, 7.200%, 10/01/10 1,000 Industrial Development 8/09 at 102 AAA 1,093,780 Authority of Middlesex County, Virginia, Lease Revenue Bonds (School Facilities Project), Series 1999, 6.000%, 8/01/24 675 Redevelopment and 11/09 at 102 AA+ 706,219 Housing Authority of Norfolk, Virginia, Educational Facility Revenue Bonds (State Board for Community Colleges - Tidewater Community College Downtown Campus), Series 1999, 5.500%, 11/01/19 Industrial Development Authority of Prince William County, Virginia, Lease Revenue Bonds (ATCC Project): 2,000 6.000%, 2/01/14 2/06 at 102 Aa3 2,070,560 1,000 6.000%, 2/01/18 2/06 at 102 Aa3 1,020,530 Puerto Rico Highway and Transportation Authority, Transportation Revenue Bonds, Series B: 1,500 5.750%, 7/01/16 7/10 at 101 AAA 1,654,320 1,000 5.750%, 7/01/19 7/10 at 101 AAA 1,087,910 2,000 Virgin Islands Public 10/10 at 101 BBB- 2,166,020 Finance Authority, Revenue Bonds (Gross Receipts Taxes Loan Note), Series 1999A, 6.500%, 10/01/24 1,000 Commonwealth 5/07 at 101 AA+ 1,013,640 Transportation Board, Commonwealth of Virginia, Transportation Revenue Refunding Bonds (U.S. Route 58 Corridor Development Program), Series 1997C, 5.125%, 5/15/19 1,000 Virginia Public School 8/04 at 102 Aa1 1,090,850 Authority, School Financing Bonds, Series 1994A, 6.200%, 8/01/13 -------------------------------------------------------------------------------- Transportation - 10.4% 750 Charlottesville- 12/05 at 102 BBB 766,118 Albemarle Airport Authority, Virginia, Airport Revenue Refunding Bonds, Series 1995, 6.125%, 12/01/13 (Alternative Minimum Tax) 1,250 City of Chesapeake, 7/09 at 101 Baa2 1,277,875 Virginia, Chesapeake Expressway Toll Road Revenue Bonds, Series 1999A, 5.625%, 7/15/19 Loudoun County Industrial Development Authority, Virginia, Air Cargo Facility Revenue Bonds (Washington Dulles Air Cargo): 2,745 7.000%, 1/01/09 1/02 at 101 N/R 2,756,255 (Alternative Minimum Tax) 600 6.500%, 1/01/09 1/06 at 102 N/R 596,436 (Alternative Minimum Tax) Metropolitan Washington Airports Authority, District of Columbia, Airport System Revenue Bonds, Series 2001B: 1,475 5.000%, 10/01/26 10/11 at 101 AAA 1,434,025 1,250 5.000%, 10/01/31 10/11 at 101 AAA 1,208,925 1,160 Metropolitan Washington 10/04 at 102 AAA 1,186,634 Airports Authority, Virginia, Airport System Revenue Bonds, Series 1994A, 5.750%, 10/01/20 (Alternative Minimum Tax) 900 Metropolitan Washington 10/07 at 101 AA- 884,772 Airports Authority, Virginia, Airport System Revenue Bonds, Series B, 5.500%, 10/01/23 (Alternative Minimum Tax) 225 Metropolitan Washington 10/08 at 101 AA- 207,758 Airports Authority, Virginia, Airport System Revenue Bonds, Series 1998A, 5.000%, 10/01/28 3,000 Norfolk Airport 7/11 at 100 AAA 2,995,320 Authority, Virginia, Airport Revenue Bonds, Series 2001A, 5.125%, 7/01/31 Pocahontas Parkway Association, Virginia, Route 895 Connector Toll Road Revenue Bonds, Senior Current Interest Series 1998A: 5,000 0.000%, 8/15/16 8/08 at 64 13/16 BBB- 1,658,550 5,500 5.500%, 8/15/28 8/08 at 102 BBB- 4,477,385
-------------------------------------------------------------------------------- 17 Portfolio of Investments (Unaudited) Nuveen Virginia Municipal Bond Fund (continued) November 30, 2001
Principal Optional Call Amount (000) Description Provisions* Ratings** Market Value ------------------------------------------------------------------------------- Transportation (continued) $ 2,250 Puerto Rico Ports 6/06 at 102 BB $ 1,856,723 Authority, Special Facilities Revenue Bonds (American Airlines, Inc. Project), 1996 Series A, 6.250%, 6/01/26 (Alternative Minimum Tax) 1,000 Virginia Port Authority, 7/07 at 101 AAA 1,018,250 Port Facilities Revenue Bonds, Series 1997, 5.500%, 7/01/24 (Alternative Minimum Tax) 1,000 Virginia Resources 2/11 at 100 Aa2 996,720 Authority, Airport Revolving Fund Revenue Bonds, Series 2001A, 5.250%, 8/01/23 ------------------------------------------------------------------------------- U.S. Guaranteed - 17.8% 1,000 Town of Abingdon, 8/02 at 102 A2*** 1,048,480 Virginia, General Obligation Capital Improvement Bonds, Series 1992, 6.250%, 8/01/12 (Pre-refunded to 8/01/02) 1,125 Industrial Development 10/02 at 102 N/R*** 1,187,348 Authority of Albemarle County, Virginia, Health Services Revenue Bonds (The University of Virginia Health Services Foundation), Series 1992, 6.500%, 10/01/22 (Pre- refunded to 10/01/02) 1,000 Polytechnic Institute 11/02 at 102 A*** 1,058,290 Sanitation Authority of Blacksburg, Virginia, Sewer System Revenue Bonds, Series 1992, 6.250%, 11/01/12 (Pre- refunded to 11/01/02) 1,000 Industrial Development 4/02 at 102 N/R*** 1,034,940 Authority of Covington- Alleghany County, Virginia, Hospital Facility Revenue Bonds (Alleghany Regional Hospital), Series 1992, 6.625%, 4/01/12 (Pre- refunded to 4/01/02) 730 City of Danville, 5/02 at 102 A3*** 758,288 Virginia, General Improvement Bonds of Fiscal Year 1991-1992, 6.500%, 5/01/12 (Pre-refunded to 5/01/02) 1,290 Redevelopment and Housing 6/02 at 102 N/R*** 1,363,336 Authority of Fairfax County, Virginia, Revenue Bonds (FCRHA Office Building), 1992 Issue A, 7.500%, 6/15/18 (Pre- refunded to 6/15/02) 150 Water Authority of Fairfax 4/07 at 102 AAA 169,143 County, Virginia, Water Refunding Revenue Bonds, Series 1992, 6.000%, 4/01/22 (Pre-refunded to 4/01/07) 500 Industrial Development 11/06 at 100 Aa2*** 567,835 Authority of the City of Hampton, Virginia, Hospital Revenue and Refunding Bonds (Sentara Hampton General Hospital), Series 1994A, 6.500%, 11/01/12 (Pre- refunded to 11/01/06) 995 Henrico County, Virginia, 5/02 at 100 Aa2*** 1,012,781 Water and Sewer System Refunding Revenue Bonds, Series 1992, 6.250%, 5/01/13 (Pre-refunded to 5/01/02) 1,000 Sanitation Authority of 1/03 at 102 AAA 1,065,270 Loudoun County, Virginia, Water and Sewer System Revenue Bonds, Refunding Series 1992, 6.250%, 1/01/16 (Pre-refunded to 1/01/03) 2,000 Peninsula Ports Authority, 8/06 at 100 BBB+*** 2,248,000 Virginia, Healthcare Facilities Revenue Refunding Bonds (Mary Immaculate Project), 7.000%, 8/01/17 (Pre- refunded to 8/01/06) 2,080 Peninsula Ports Authority, 7/02 at 102 Aaa 2,177,157 Virginia, Health System Revenue and Refunding Bonds (Riverside Health System Project), Series 1992-A, 6.625%, 7/01/18 (Pre-refunded to 7/01/02) 2,250 Industrial Development 10/05 at 102 Aaa 2,581,065 Authority of Prince William County, Virginia, Hospital Facility Revenue Bonds (Potomac Hospital Corporation of Prince William), Series 1995, 6.850%, 10/01/25 (Pre- refunded to 10/01/05) 2,500 Park Authority of Prince 10/04 at 102 N/R*** 2,819,250 William County, Virginia, Revenue Bonds, Series 1994, 6.875%, 10/15/16 (Pre-refunded to 10/15/04) 2,575 Commonwealth of Puerto 7/04 at 102 AAA 2,859,872 Rico, General Obligation Public Improvement Bonds of 1994, 6.450%, 7/01/17 (Pre-refunded to 7/01/04) 500 Puerto Rico Infrastructure 10/10 at 101 AAA 523,315 Financing Authority, Special Obligation Bonds, 2000 Series A, 5.500%, 10/01/40 1,500 Redevelopment and Housing 3/05 at 102 AAA 1,692,420 Authority of Richmond, Virginia, Project Revenue Bonds (1994 Old Manchester Project), Series 1994, 6.800%, 3/01/15 (Pre-refunded to 3/01/05) 750 Virginia College Building 1/02 at 102 AAA 767,813 Authority, Educational Facilities Revenue Bonds (Washington and Lee University Project), Series 1992 Refunding, 6.400%, 1/01/12 (Pre- refunded to 1/01/02) 800 Virginia College Building 5/02 at 102 A*** 831,416 Authority, Educational Facilities Revenue Bonds (Randolph-Macon College Project), Series 1992, 6.625%, 5/01/13 (Pre- refunded to 5/01/02) Virginia College Building Authority, Educational Facilities Revenue Bonds (Marymount University Project): 1,000 7.000%, 7/01/12 (Pre- 7/02 at 102 N/R*** 1,048,520 refunded to 7/01/02) 1,400 7.000%, 7/01/22 (Pre- 7/02 at 102 N/R*** 1,467,928 refunded to 7/01/02)
-------------------------------------------------------------------------------- 18
Principal Optional Call Amount (000) Description Provisions* Ratings** Market Value ------------------------------------------------------------------------------- U.S. Guaranteed (continued) $ 580 Virginia College Building 1/04 at 102 AAA $ 625,182 Authority, Educational Facilities Revenue Bonds (Washington and Lee University Project), Series 1994, 5.750%, 1/01/14 (Pre-refunded to 1/01/04) Virginia Housing Development Authority, Commonwealth Mortgage Bonds, 1992 Series A: 3,000 7.100%, 1/01/17 (Pre- 1/02 at 102 AA+*** 3,063,780 refunded to 1/01/02) 1,000 7.100%, 1/01/22 (Pre- 1/02 at 102 AA+*** 1,021,090 refunded to 1/01/02) 3,170 7.150%, 1/01/33 (Pre- 1/02 at 102 AA+*** 3,236,792 refunded to 1/01/02) 1,000 Virginia Resources 10/07 at 100 AA*** 1,097,480 Authority, Water and Sewer System Revenue Bonds (Sussex County Project), 1995 Series A, 5.600%, 10/01/25 (Pre- refunded to 10/01/07) Industrial Development Authority of the City of Winchester, Virginia, Educational Facilities First Mortgage Revenue Bonds (Shenandoah University Project), Series 1994: 1,620 6.700%, 10/01/14 (Pre- 10/04 at 102 AA*** 1,821,674 refunded to 10/01/04) 680 6.750%, 10/01/19 (Pre- 10/04 at 102 AA*** 765,578 refunded to 10/01/04) ------------------------------------------------------------------------------- Utilities - 5.7% 2,110 Halifax County Industrial 12/02 at 102 A+ 2,166,379 Development Authority, Virginia, Exempt Facilities Revenue Bonds (Old Dominion Electric Cooperative Project), 6.500%, 12/01/12 (Alternative Minimum Tax) 4,335 Puerto Rico Electric Power No Opt. Call AAA 5,004,974 Authority, Power Revenue Bonds, Drivers Series 147, 14.251%, 1/01/09 (IF) 1,000 Russell County Industrial 5/02 at 101 Baa1 1,011,720 Development Authority, Virginia, Pollution Control Revenue Bonds (Appalachian Power Company Project), Series G, 7.700%, 11/01/07 1,500 Southeastern Public 7/03 at 102 A- 1,525,245 Service Authority, Virginia, Senior Revenue Bonds (Regional Solid Waste System), Series 1993, 6.000%, 7/01/13 (Alternative Minimum Tax) 1,000 Virginia Resources 11/02 at 102 AA 1,056,830 Authority, Solid Waste Disposal System Revenue Bonds, Series B, 6.750%, 11/01/12 1,960 Virginia Resources 4/05 at 102 AA 2,019,584 Authority, Prince William County, Solid Waste Disposal System Revenue Bonds, Refunding 1995 Series A, 5.500%, 4/01/15 ------------------------------------------------------------------------------- Water and Sewer - 11.6% 1,000 Fairfax County, Virginia, 7/06 at 102 AAA 1,053,080 Sewer Revenue Bonds, Series 1996, 5.875%, 7/15/28 1,000 Fairfax County Water No Opt. Call AAA 1,010,460 Authority, Virginia, Water Refunding Revenue Bonds, Series 1997, 5.000%, 4/01/21 2,045 Fairfax County Water 4/07 at 102 AAA 2,209,520 Authority, Virginia, Water Refunding Revenue Bonds, Series 1992, 6.000%, 4/01/22 1,000 Frederick-Winchester 10/03 at 102 AAA 1,059,960 Service Authority, Virginia, Regional Sewer System Refunding Revenue Bonds, Series 1993, 5.750%, 10/01/15 1,505 Henrico County, Virginia, 5/02 at 100 Aa2 1,535,175 Water and Sewer System Refunding Revenue Bonds, Series 1992, 6.250%, 5/01/13 1,500 Leesburg, Virginia, 7/07 at 102 AAA 1,512,120 Utility System Revenue Refunding Bonds, 5.125%, 7/01/22 1,000 Loudoun County Sanitation 1/07 at 102 AAA 1,004,670 Authority, Virginia, Water and Sewer System Revenue Bonds, Refunding Series 1996, 5.125%, 1/01/26 2,900 Prince William County 7/08 at 101 AAA 2,728,001 Service Authority, Virginia, Water and Sewer System Refunding Revenue Bonds, Series 1997, 4.750%, 7/01/29 2,000 Spotsylvania County, 6/07 at 102 AAA 2,054,700 Virginia, Water and Sewer System Revenue Bonds, Series 1997, 5.400%, 6/01/27 1,270 Upper Occoquan Sewage 1/04 at 102 AAA 1,270,178 Authority, Virginia, Regional Sewerage System Revenue Refunding Bonds, Series 1993, 5.000%, 7/01/21 750 City of Virginia Beach, 9/10 at 101 Aa3 827,932 Virginia, Storm Water Utility Revenue Bonds, Series 2000, 6.000%, 9/01/20 1,000 Virginia Resources 10/05 at 102 AA 1,050,259 Authority, Sewer System Revenue Bonds (Hopewell Regional Wastewater Treatment Facility Project), 1995 Series A, 6.000%, 10/01/25 (Alternative Minimum Tax) 1,000 Virginia Resources 10/10 at 100 AAA 1,053,249 Authority, Clean Water State Revolving Fund Revenue Bonds, Series 1999, 5.625%, 10/01/22 Virginia Resources Authority, Clean Water State Revolving Fund Revenue Bonds, 2000 RITES Series PA-790-R: 500 13.720%, 10/01/14 (IF) 10/10 at 100 AAA 653,179 410 13.720%, 10/01/15 (IF) 10/10 at 100 AAA 529,924 1,900 13.720%, 10/01/16 (IF) 10/10 at 100 AAA 2,420,884
-------------------------------------------------------------------------------- 19 Portfolio of Investments (Unaudited) Nuveen Virginia Municipal Bond Fund (continued) November 30, 2001
Principal Optional Call Amount (000) Description Provisions* Ratings** Market Value ------------------------------------------------------------------------------ Water and Sewer (continued) $ 2,485 Virginia Resources 5/11 at 101 AA $ 2,539,545 Authority, Water and Sewer System Revenue Bonds (Caroline County Public Improvements Project), Series 2001, 5.250%, 5/01/21 1,500 Virginia Resources 4/02 at 100 AA 1,520,834 Authority, Water System Refunding Revenue Bonds, 1992 Series A, 6.125%, 4/01/19 ------------------------------------------------------------------------------ $219,260 Total Investments (cost 223,129,135 $214,026,058) - 99.6% ------------------------------------------------------------------------------ ------------ Short-Term Investments - 0.6% $ 1,250 Puerto Rico Government VMIG-1 1,250,000 Development Bank, Revenue Refunding Bonds, Series 1985, Variable Rate Demand Bonds, 1.170%, 12/01/15+ ------------ --------------------------------------------------------------------- Other Assets Less (337,824) Liabilities - (0.2)% --------------------------------------------------------------------- Net Assets - 100% $224,041,311 ---------------------------------------------------------------------
* Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call pro- visions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing suffi- cient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securi- ties. N/R Investment is not rated. (IF) Inverse floating rate security. (WI) Security purchased on a when-issued basis. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term securi- ty. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. ------------------------------------------------------------------------------- 20 Statement of Net Assets (Unaudited) November 30, 2001
Maryland Pennsylvania Virginia ------------------------------------------------------------------------------- Assets Investments in municipal securities, at market value $84,021,451 $144,669,884 $223,129,135 Temporary investments in short-term municipal securities, at amortized cost, which approximates market value 750,000 -- 1,250,000 Cash 28,248 -- -- Receivables: Interest 1,722,658 2,698,454 4,116,396 Investments sold 20,410 2,000,000 -- Shares sold 81,914 77,658 158,863 Other assets 80 151 183 ------------------------------------------------------------------------------- Total assets 86,624,761 149,446,147 228,654,577 ------------------------------------------------------------------------------- Liabilities Cash overdraft -- 5,709,101 1,659,873 Payables: Investments purchased 487,348 -- 2,000,000 Shares redeemed 9,784 51,261 304,994 Accrued expenses: Management fees 39,096 64,964 101,138 12b-1 distribution and service fees 15,370 25,807 45,033 Other 53,056 27,026 81,203 Dividends payable 215,399 294,762 421,025 ------------------------------------------------------------------------------- Total liabilities 820,053 6,172,921 4,613,266 ------------------------------------------------------------------------------- Net assets $85,804,708 $143,273,226 $224,041,311 ------------------------------------------------------------------------------- Class A Shares Net assets $28,800,071 $ 63,625,842 $140,953,878 Shares outstanding 2,809,523 6,205,396 13,124,626 Net asset value and redemption price per share $ 10.25 $ 10.25 $ 10.74 Offering price per share (net asset value per share plus maximum sales charge of 4.20% of offering price) $ 10.70 $ 10.70 $ 11.21 ------------------------------------------------------------------------------- Class B Shares Net assets $ 8,857,198 $ 10,296,800 $ 14,959,118 Shares outstanding 862,910 1,002,502 1,394,634 Net asset value, offering and redemption price per share $ 10.26 $ 10.27 $ 10.73 ------------------------------------------------------------------------------- Class C Shares Net assets $ 6,972,746 $ 12,018,950 $ 16,285,764 Shares outstanding 680,178 1,173,910 1,518,774 Net asset value, offering and redemption price per share $ 10.25 $ 10.24 $ 10.72 ------------------------------------------------------------------------------- Class R Shares Net assets $41,174,693 $ 57,331,634 $ 51,842,551 Shares outstanding 4,005,633 5,594,228 4,833,677 Net asset value, offering and redemption price per share $ 10.28 $ 10.25 $ 10.73 -------------------------------------------------------------------------------
See accompanying notes to financial statements. ------------------------------------------------------------------------------- 21 Statement of Operations (Unaudited) Six Months Ended November 30, 2001
Maryland Pennsylvania Virginia ------------------------------------------------------------------------------- Investment Income $2,417,560 $4,262,919 $6,647,959 ------------------------------------------------------------------------------- Expenses Management fees 231,589 387,773 611,036 12b-1 service fees-Class A 27,937 63,008 140,990 12b-1 distribution and service fees- Class B 38,514 48,622 67,594 12b-1 distribution and service fees- Class C 24,804 41,431 60,782 Shareholders' servicing agent fees and expenses 43,230 67,224 83,215 Custodian's fees and expenses 25,665 30,112 41,288 Trustees' fees and expenses 952 1,772 2,691 Professional fees 5,897 5,983 6,229 Shareholders' reports-printing and mailing expenses 9,916 16,345 21,309 Federal and state registration fees 5,748 3,661 3,231 Other expenses 2,071 3,364 5,031 ------------------------------------------------------------------------------- Total expenses before custodian fee credit 416,323 669,295 1,043,396 Custodian fee credit (4,789) (4,118) (8,655) ------------------------------------------------------------------------------- Net expenses 411,534 665,177 1,034,741 ------------------------------------------------------------------------------- Net investment income 2,006,026 3,597,742 5,613,218 ------------------------------------------------------------------------------- Realized and Unrealized Gain (Loss) from Investments Net realized gain (loss) from investment transactions (250) 5,725 83,851 Net change in unrealized appreciation or depreciation of investments 824,116 2,634,345 822,283 ------------------------------------------------------------------------------- Net gain from investments 823,866 2,640,070 906,134 ------------------------------------------------------------------------------- Net increase in net assets from operations $2,829,892 $6,237,812 $6,519,352 -------------------------------------------------------------------------------
See accompanying notes to financial statements. ------------------------------------------------------------------------------- 22 Statement of Changes in Net Assets (Unaudited)
Maryland ----------------------------- Six Months Ended Year Ended 11/30/01 5/31/01 ------------------------------------------------------------------------------- Operations Net investment income $ 2,006,026 $ 3,674,226 Net realized gain (loss) from investment transactions (250) (249,015) Net change in unrealized appreciation or depreciation of investments 824,116 4,600,310 ------------------------------------------------------------------------------- Net increase in net assets from operations 2,829,892 8,025,521 ------------------------------------------------------------------------------- Distributions to Shareholders From undistributed net investment income: Class A (647,882) (1,158,170) Class B (156,781) (212,655) Class C (136,011) (229,037) Class R (1,008,217) (1,996,332) From accumulated net realized gains from investment transactions: Class A -- (6,281) Class B -- (1,374) Class C -- (1,402) Class R -- (10,584) ------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (1,948,891) (3,615,835) ------------------------------------------------------------------------------- Fund Share Transactions Net proceeds from sale of shares 7,385,511 9,218,230 Net proceeds from shares issued to shareholders due to reinvestment of distributions 1,237,192 2,266,294 ------------------------------------------------------------------------------- 8,622,703 11,484,524 Cost of shares redeemed (2,975,467) (8,134,321) ------------------------------------------------------------------------------- Net increase in net assets from Fund share transactions 5,647,236 3,350,203 ------------------------------------------------------------------------------- Net increase in net assets 6,528,237 7,759,889 Net assets at the beginning of period 79,276,471 71,516,582 ------------------------------------------------------------------------------- Net assets at the end of period $85,804,708 $79,276,471 ------------------------------------------------------------------------------- Undistributed net investment income at the end of period $ 173,971 $ 59,710 -------------------------------------------------------------------------------
See accompanying notes to financial statements. ------------------------------------------------------------------------------- 23 Statement of Changes in Net Assets (Unaudited) (continued)
Pennsylvania Virginia ------------------------------ ------------------------------ Six Months Ended Year Ended Six Months Ended Year Ended 11/30/01 5/31/01 11/30/01 5/31/01 ----------------------------------------------------------------------------------------- Operations Net investment income $ 3,597,742 $ 7,027,132 $ 5,613,218 $ 10,836,493 Net realized gain (loss) from investment transactions 5,725 (196,202) 83,851 293,581 Net change in unrealized appreciation or depreciation of investments 2,634,345 8,836,136 822,283 11,065,964 ----------------------------------------------------------------------------------------- Net increase in net assets from operations 6,237,812 15,667,066 6,519,352 22,196,038 ----------------------------------------------------------------------------------------- Distributions to Shareholders From undistributed net investment income: Class A (1,599,257) (3,029,150) (3,436,100) (6,623,404) Class B (221,732) (377,718) (295,256) (508,865) Class C (250,843) (445,944) (353,494) (647,165) Class R (1,509,844) (2,897,267) (1,353,925) (2,830,599) From accumulated net realized gains from investment transactions: Class A -- -- -- -- Class B -- -- -- -- Class C -- -- -- -- Class R -- -- -- -- ----------------------------------------------------------------------------------------- Decrease in net assets from distributions to shareholders (3,581,676) (6,750,079) (5,438,775) (10,610,033) ----------------------------------------------------------------------------------------- Fund Share Transactions Net proceeds from sale of shares 9,778,899 11,698,166 16,772,067 25,561,366 Net proceeds from shares issued to shareholders due to reinvestment of distributions 1,689,043 3,141,175 2,467,462 4,761,027 ----------------------------------------------------------------------------------------- 11,467,942 14,839,341 19,239,529 30,322,393 Cost of shares redeemed (6,011,164) (13,429,905) (13,291,317) (25,797,735) ----------------------------------------------------------------------------------------- Net increase in net assets from Fund share transactions 5,456,778 1,409,436 5,948,212 4,524,658 ----------------------------------------------------------------------------------------- Net increase in net assets 8,112,914 10,326,423 7,028,789 16,110,663 Net assets at the beginning of period 135,160,312 124,833,889 217,012,522 200,901,859 ----------------------------------------------------------------------------------------- Net assets at the end of period $143,273,226 $135,160,312 $224,041,311 $217,012,522 ----------------------------------------------------------------------------------------- Undistributed net investment income at the end of period $ 132,688 $ 97,754 $ 598,745 $ 232,736 -----------------------------------------------------------------------------------------
See accompanying notes to financial statements. ------------------------------------------------------------------------------- 24 Notes to Financial Statements (Unaudited) 1. General Information and Significant Accounting Policies The Nuveen Multistate Trust I (the "Trust") is an open-end investment company registered under the Investment Company Act of 1940, as amended. The Trust comprises the Nuveen Maryland Municipal Bond Fund ("Maryland"), the Nuveen Pennsylvania Municipal Bond Fund ("Pennsylvania") and the Nuveen Virginia Mu- nicipal Bond Fund ("Virginia") (collectively, the "Funds"), among others. The Trust was organized as a Massachusetts business trust on July 1, 1996. The Funds seek to provide high tax-free income and preservation of capital through investments in diversified portfolios of quality municipal bonds. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with ac- counting principles generally accepted in the United States. Securities 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 Trustees. When price quotes are not readily available (which is usually the case for municipal se- curities), the pricing service establishes fair market value based on yields or prices of municipal bonds of comparable quality, type of issue, coupon, ma- turity and rating, indications of value from securities dealers and general market conditions. If it is determined that market prices for a security are unavailable or inappropriate, the Board of Trustees of the Funds may establish a fair value for the security. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are valued at amortized cost, which approximates market value. Securities Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined on the specific identification method. Securities purchased or sold on a when-issued or delayed delivery ba- sis may have extended settlement periods. Any securities so purchased are sub- ject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets in a separate account with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At November 30, 2001, Maryland and Virginia had outstanding when- issued purchase commitments of $487,348 and $2,000,000, respectively. There were no such outstanding purchase commitments in Pennsylvania. Investment Income Interest income is determined on the basis of interest accrued, adjusted for amortization of premiums and accretion of discounts on long-term debt securi- ties for financial reporting purposes. Dividends and Distributions to Shareholders Tax-exempt net investment income is declared monthly as a dividend and payment is made or reinvestment is credited to shareholder accounts on the first busi- ness day after month-end. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to shareholders of tax-exempt net investment income, net real- ized capital gains and/or market discount 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 accounting principles generally accepted in the United States. Accordingly, temporary over-distribu- tions as a result of these differences may occur and will be classified as ei- ther distributions in excess of net investment income, distributions in excess of net realized gains and/or distributions in excess of net ordinary taxable income from investment transactions, where applicable. Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to comply with the requirements of the Internal Revenue Code applica- ble to regulated investment companies and to distribute all of its net invest- ment income to its shareholders. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions which will ena- ble interest from municipal securities, which is exempt from regular federal and designated state income taxes, to retain such tax-exempt status when dis- tributed to shareholders of the Funds. Flexible Sales Charge Program Each Fund offers Class A, B, C and R Shares. Class A Shares are sold with a sales charge and incur an annual 12b-1 service fee. Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge ("CDSC") if redeemed within 18 months of purchase. Class B Shares are sold without a sales charge but incur annual 12b-1 distribution and service fees. An investor pur- chasing Class B Shares agrees to pay a CDSC of up to 5% depending upon the length of time the shares are held by the investor (CDSC is reduced to 0% at the end of six years). Class B Shares convert to Class A Shares eight years after purchase. Class C Shares are sold without a sales charge but incur an- nual 12b-1 distribution and service fees. An investor purchasing Class C Shares agrees to pay a CDSC of 1% if Class C Shares are redeemed ------------------------------------------------------------------------------- 25 Notes to Financial Statements (Unaudited) (continued) within one year of purchase. Class R Shares are not subject to any sales charge or 12b-1 distribution or service fees. Class R Shares are available only under limited circumstances. Derivative Financial Instruments The Funds may invest in certain derivative financial instruments including futures, forward, swap and option contracts, and other financial instruments with similar characteristics including inverse floating rate securities. Dur- ing the six months ended November 30, 2001, Maryland and Virginia invested in inverse floating rate securities for the purpose of enhancing portfolio yield. Inverse floating rate securities are identified in the Portfolio of Invest- ments and are marked to market daily. The interest rate of an inverse floating rate security has an inverse relationship to the interest rate of a short-term floating rate security. Consequently, as the interest rate of the floating rate security rises, the interest rate on the inverse floating rate security declines. Conversely, as the interest rate of the floating rate security de- clines, the interest rate on the inverse floating rate security rises. The price of an inverse floating rate security will be more volatile than that of a fixed rate security since the interest rate is dependent on the general level of interest rates as well as the short-term interest paid on the float- ing rate security. The Pennsylvania Fund did not invest in any such securities during the six months ended November 30, 2001. Expense Allocation Expenses of the Funds that are not directly attributable to a specific class of shares are prorated among the classes based on the relative net assets of each class. Expenses directly attributable to a class of shares, which pres- ently only include 12b-1 distribution and service fees, are recorded to the specific class. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight in- vestments. Use of Estimates The preparation of financial statements in conformity with accounting princi- ples generally accepted in the United States requires management to make esti- mates and assumptions that affect the reported amounts of assets and liabili- ties at the date of the financial statements and the reported amounts of in- creases and decreases in net assets from operations during the reporting peri- od. Actual results may differ from those estimates. Change in Accounting Policy As required, effective June 1, 2001, the Funds have adopted the provisions of the new AICPA Audit and Accounting Guide for Investment Companies and began accreting taxable market discount on debt securities. Prior to June 1, 2001, the Funds did not accrete taxable market discounts on debt securities until they were sold. The cumulative effect of this accounting change had no impact on the total net assets or the net asset values of the Funds, but resulted in an increase in the cost of securities and a corresponding decrease in unrealized appreciation based on securities held by the Funds on June 1, 2001 as follows:
Maryland Pennsylvania Virginia --------------------------------- $57,126 $18,868 $191,566 ---------------------------------
The effect of this change for the six months ended November 30, 2001, was to increase net investment income with a corresponding decrease in net unrealized appreciation as follows:
Maryland Pennsylvania Virginia --------------------------------- $9,478 $6,616 $41,913 ---------------------------------
The Statement of Changes in Net Assets and Financial Highlights for the prior periods have not been restated to reflect this change in presentation. ------------------------------------------------------------------------------- 26 2. Fund Shares Transactions in Fund shares were as follows:
Maryland --------------------------------------------- Six Months Ended Year Ended 11/30/01 5/31/01 --------------------- ---------------------- Shares Amount Shares Amount ----------------------------------------------------------------------------- Shares sold: Class A 305,338 $ 3,142,514 367,873 $ 3,676,723 Class B 243,101 2,495,175 213,888 2,152,001 Class C 100,622 1,035,945 117,497 1,181,167 Class R 69,052 711,877 224,430 2,208,339 Shares issued to shareholders due to reinvestment of distributions: Class A 43,279 445,338 78,482 780,860 Class B 6,801 70,107 9,936 99,087 Class C 6,436 66,245 11,467 114,093 Class R 63,534 655,502 127,541 1,272,254 ----------------------------------------------------------------------------- 838,163 8,622,703 1,151,114 11,484,524 ----------------------------------------------------------------------------- Shares redeemed: Class A (117,528) (1,207,753) (243,384) (2,411,507) Class B (24,851) (257,994) (76,684) (765,733) Class C (23,248) (240,905) (86,170) (850,717) Class R (122,991) (1,268,815) (411,687) (4,106,364) ----------------------------------------------------------------------------- (288,618) (2,975,467) (817,925) (8,134,321) ----------------------------------------------------------------------------- Net increase 549,545 $ 5,647,236 333,189 $ 3,350,203 -----------------------------------------------------------------------------
Pennsylvania ------------------------------------------------ Six Months Ended Year Ended 11/30/01 5/31/01 ---------------------- ------------------------ Shares Amount Shares Amount ----------------------------------------------------------------------- Shares sold: Class A 439,666 $ 4,515,686 563,760 $ 5,567,341 Class B 174,016 1,780,801 164,006 1,631,093 Class C 183,901 1,889,853 186,561 1,864,473 Class R 155,482 1,592,559 265,317 2,635,259 Shares issued to shareholders due to reinvestment of distributions: Class A 61,088 625,599 114,848 1,131,820 Class B 6,978 71,617 12,504 123,524 Class C 6,867 70,300 12,427 122,280 Class R 90,007 921,527 179,142 1,763,551 ----------------------------------------------------------------------- 1,118,005 11,467,942 1,498,565 14,839,341 ----------------------------------------------------------------------- Shares redeemed: Class A (290,038) (2,984,336) (605,353) (5,968,430) Class B (115,499) (1,186,917) (70,080) (691,083) Class C (27,775) (283,913) (220,134) (2,171,969) Class R (152,152) (1,555,998) (465,800) (4,598,423) ----------------------------------------------------------------------- (585,464) (6,011,164) (1,361,367) (13,429,905) ----------------------------------------------------------------------- Net increase 532,541 $ 5,456,778 137,198 $ 1,409,436 -----------------------------------------------------------------------
-------------------------------------------------------------------------------- 27 Notes to Financial Statements (Unaudited) (continued)
Virginia -------------------------------------------------- Six Months Ended Year Ended 11/30/01 5/31/01 ------------------------ ------------------------ Shares Amount Shares Amount ------------------------------------------------------------------------- Shares sold: Class A 1,085,795 $ 11,713,584 1,402,794 $ 14,825,290 Class B 210,844 2,277,915 235,349 2,497,444 Class C 160,269 1,728,655 304,226 3,227,555 Class R 97,517 1,051,913 480,171 5,011,077 Shares issued to shareholders due to reinvestment of distributions: Class A 131,026 1,415,538 245,686 2,584,497 Class B 12,252 132,211 22,982 241,563 Class C 9,831 106,063 18,267 191,965 Class R 75,426 813,650 165,850 1,743,002 ------------------------------------------------------------------------- 1,782,960 19,239,529 2,875,325 30,322,393 ------------------------------------------------------------------------- Shares redeemed: Class A (843,088) (9,121,984) (1,319,645) (13,925,328) Class B (55,158) (594,382) (92,702) (979,296) Class C (100,796) (1,086,987) (285,887) (2,997,226) Class R (230,519) (2,487,964) (747,268) (7,895,885) ------------------------------------------------------------------------- (1,229,561) (13,291,317) (2,445,502) (25,797,735) ------------------------------------------------------------------------- Net increase 553,399 $ 5,948,212 429,823 $ 4,524,658 -------------------------------------------------------------------------
3. Distributions to Shareholders The Funds declared dividend distributions from their tax-exempt net investment income which were paid on December 26, 2001, to shareholders of record on De- cember 7, 2001, as follows:
Maryland Pennsylvania Virginia ------------------------------------------------------------------------------ Dividend per share: Class A $.0400 $.0435 $.0440 Class B .0335 .0375 .0375 Class C .0355 .0390 .0390 Class R .0420 .0455 .0460 ------------------------------------------------------------------------------ The following Funds also declared ordinary taxable income distributions, which were paid on December 5, 2001, to shareholders of record on December 3, 2001, as follows: Pennsylvania Virginia ------------------------------------------------------------------------------ Ordinary taxable income distributions per share: $.0011 $.0002 ------------------------------------------------------------------------------
4. Securities Transactions Purchases and sales (including maturities) of investments in long-term munici- pal securities and short-term municipal securities for the six months ended November 30, 2001, were as follows:
Maryland Pennsylvania Virginia -------------------------------------------------------------------------- Purchases: Long-term municipal securities $5,864,609 $16,304,075 $15,600,932 Short-term municipal securities 750,000 -- 7,250,000 Sales and maturities: Long-term municipal securities 195,000 10,689,701 7,857,427 Short-term municipal securities -- -- 6,000,000 -------------------------------------------------------------------------- At November 30, 2001, the cost of investments owned for federal income tax purposes were as follows: Maryland Pennsylvania Virginia -------------------------------------------------------------------------- $82,976,388 $139,673,635 $215,042,579 --------------------------------------------------------------------------
------------------------------------------------------------------------------- 28 At May 31, 2001, the Funds' last fiscal year end, the Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
Maryland Pennsylvania Virginia ------------------------------------------------------------------------------ Expiration year: 2008 $ -- $ 724,240 $928,649 2009 538,619 1,457,958 -- ------------------------------------------------------------------------------ Total $538,619 $2,182,198 $928,649 ------------------------------------------------------------------------------ 5. Unrealized Appreciation (Depreciation) Gross unrealized appreciation and gross unrealized depreciation of investments for federal income tax purposes at November 30, 2001, were as follows: Maryland Pennsylvania Virginia ------------------------------------------------------------------------------ Gross unrealized: appreciation $ 3,385,553 $ 7,042,267 $11,616,666 depreciation (1,590,490) (2,046,018) (2,280,110) ------------------------------------------------------------------------------ Net unrealized appreciation $ 1,795,063 $ 4,996,249 $ 9,336,556 ------------------------------------------------------------------------------
6. Management Fee and Other Transactions with Affiliates Under the Trust's investment management agreement with Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund pays an annual management fee, payable monthly, at the rates set forth below which are based upon the average daily net assets of each Fund as fol- lows:
Average Daily Net Assets Management Fee ----------------------------------------------- For the first $125 million .5500 of 1% For the next $125 million .5375 of 1 For the next $250 million .5250 of 1 For the next $500 million .5125 of 1 For the next $1 billion .5000 of 1 For the next $3 billion .4750 of 1 For net assets over $5 billion .4500 of 1 -----------------------------------------------
The management fee compensates the Adviser for overall investment advisory and administrative services, and general office facilities. The Trust pays no com- pensation directly to those of its Trustees who are affiliated with the Ad- viser or to its officers, all of whom receive remuneration for their services to the Trust from the Adviser or its affiliates. The Adviser may voluntarily reimburse expenses from time to time, which may be terminated at any time at its discretion. During the six months ended November 30, 2001, Nuveen Investments (the "Dis- tributor"), a wholly owned subsidiary of The John Nuveen Company, collected sales charges on purchases of Class A Shares, the majority of which were paid out as concessions to authorized dealers as follows:
Maryland Pennsylvania Virginia ------------------------------------------------------------------------------ Sales charges collected $47,964 $56,572 $92,046 Paid to authorized dealers 43,900 48,874 89,989 ------------------------------------------------------------------------------ The Distributor also received 12b-1 service fees on Class A Shares, substan- tially all of which were paid to compensate authorized dealers for providing services to shareholders relating to their investments. During the six months ended November 30, 2001, the Distributor compensated au- thorized dealers directly with commission advances at the time of purchase as follows: Maryland Pennsylvania Virginia ------------------------------------------------------------------------------ Commission advances $110,256 $84,620 $122,060 ------------------------------------------------------------------------------
------------------------------------------------------------------------------- 29 Notes to Financial Statements (Unaudited) (continued) To compensate for commissions advanced to authorized dealers, all 12b-1 serv- ice fees collected on Class B Shares during the first year following a pur- chase, all 12b-1 distribution fees collected on Class B Shares, and all 12b-1 service and distribution fees collected on Class C Shares during the first year following a purchase are retained by the Distributor. During the six months ended November 30, 2001, the Distributor retained such 12b-1 fees as follows:
Maryland Pennsylvania Virginia ------------------------------------------------------------------------------ 12b-1 fees retained $40,566 $47,968 $68,855 ------------------------------------------------------------------------------ The remaining 12b-1 fees charged to the Fund were paid to compensate autho- rized dealers for providing services to shareholders relating to their invest- ments. The Distributor also collected and retained CDSC on share redemptions during the six months ended November 30, 2001, as follows: Maryland Pennsylvania Virginia ------------------------------------------------------------------------------ CDSC retained $10,490 $21,290 $13,565 ------------------------------------------------------------------------------ 7. Composition of Net Assets At November 30, 2001, the Funds had an unlimited number of $.01 par value shares authorized. Net assets consisted of: Maryland Pennsylvania Virginia ------------------------------------------------------------------------------ Capital paid-in $84,441,147 $140,346,246 $215,184,287 Undistributed net investment income 173,971 132,688 598,745 Accumulated net realized gain (loss) from investment transactions (660,211) (2,375,219) (844,798) Net unrealized appreciation of investments 1,849,801 5,169,511 9,103,077 ------------------------------------------------------------------------------ Net assets $85,804,708 $143,273,226 $224,041,311 ------------------------------------------------------------------------------
------------------------------------------------------------------------------- 30 Financial Highlights (Unaudited) Selected data for a share outstanding throughout each period:
Class (Inception Date) Investment Operations Less Distributions ------------------------- ----------------------- MARYLAND Net From Realized/ and in Unrealized Excess Beginning Net Invest- of Net Ending Net Invest- ment Invest- Net Year Ended Asset ment Gain ment Capital Asset Total May 31, Value Income (Loss) Total Income Gains Total Value Return(a) ---------------------------------------------------------------------------------------------- Class A (9/94) 2002(g) $10.14 $.25 $ .10 $ .35 $(.24) $ -- $(.24) $10.25 3.46% 2001 9.55 .48 .58 1.06 (.47) -- (.47) 10.14 11.36 2000 10.46 .47 (.86) (.39) (.49) (.03) (.52) 9.55 (3.71) 1999 10.56 .49 (.11) .38 (.48) -- (.48) 10.46 3.65 1998 10.25 .48 .32 .80 (.49) -- (.49) 10.56 7.95 1997(d) 10.25 .16 .01 .17 (.17) -- (.17) 10.25 1.63 1997(e) 10.43 .46 (.15) .31 (.49) -- (.49) 10.25 3.06 Class B (3/97) 2002(g) 10.15 .21 .10 .31 (.20) -- (.20) 10.26 3.07 2001 9.56 .41 .58 .99 (.40) -- (.40) 10.15 10.53 2000 10.47 .40 (.86) (.46) (.42) (.03) (.45) 9.56 (4.44) 1999 10.56 .41 (.10) .31 (.40) -- (.40) 10.47 2.95 1998 10.25 .41 .31 .72 (.41) -- (.41) 10.56 7.16 1997(f) 10.29 .10 (.04) .06 (.10) -- (.10) 10.25 .83 Class C (9/94) 2002(g) 10.14 .22 .10 .32 (.21) -- (.21) 10.25 3.19 2001 9.56 .43 .57 1.00 (.42) -- (.42) 10.14 10.64 2000 10.46 .42 (.86) (.44) (.43) (.03) (.46) 9.56 (4.16) 1999 10.56 .43 (.11) .32 (.42) -- (.42) 10.46 3.07 1998 10.24 .43 .32 .75 (.43) -- (.43) 10.56 7.44 1997(d) 10.24 .15 -- .15 (.15) -- (.15) 10.24 1.43 1997(e) 10.42 .39 (.16) .23 (.41) -- (.41) 10.24 2.28 Class R (12/91) 2002(g) 10.16 .26 .11 .37 (.25) -- (.25) 10.28 3.66 2001 9.58 .50 .57 1.07 (.49) -- (.49) 10.16 11.41 2000 10.48 .49 (.85) (.36) (.51) (.03) (.54) 9.58 (3.43) 1999 10.58 .51 (.11) .40 (.50) -- (.50) 10.48 3.82 1998 10.26 .51 .32 .83 (.51) -- (.51) 10.58 8.23 1997(d) 10.26 .17 -- .17 (.17) -- (.17) 10.26 1.68 1997(e) 10.44 .47 (.14) .33 (.51) -- (.51) 10.26 3.29 ---------------------------------------------------------------------------------------------- Class (Inception Date) Ratios/Supplemental Data --------------------------------------------------------------------------------- Before Credit/ After After Credit/ Reimbursement Reimbursement(b) Reimbursement(c) MARYLAND -------------------- -------------------- -------------------- Ratio Ratio Ratio of Net of Net of Net Invest- Invest- Invest- Ratio of ment Ratio of ment Ratio of ment Expenses Income Expenses Income Expenses Income Ending to to to to to to Net Average Average Average Average Average Average Portfolio Year Ended Assets Net Net Net Net Net Net Turnover May 31, (000) Assets Assets Assets Assets Assets Assets Rate ---------------------------------------------------------------------------------------------- Class A (9/94) 2002(g) $28,800 .97%* 4.77%* .97%* 4.77%* .96%* 4.78%* --% 2001 26,137 1.00 4.82 1.00 4.82 .98 4.84 28 2000 22,694 1.13 4.79 1.12 4.79 1.11 4.81 19 1999 22,093 1.02 4.57 .95 4.63 .95 4.64 29 1998 17,427 1.00 4.56 .94 4.62 .94 4.62 7 1997(d) 12,977 1.02* 4.83* .95* 4.90* .95* 4.90* 3 1997(e) 11,788 1.12 4.67 1.00 4.79 1.00 4.79 4 Class B (3/97) 2002(g) 8,857 1.72* 4.01* 1.72* 4.01* 1.71* 4.03* -- 2001 6,474 1.74 4.08 1.74 4.08 1.73 4.09 28 2000 4,694 1.87 4.04 1.87 4.04 1.85 4.05 19 1999 4,732 1.77 3.84 1.71 3.90 1.71 3.90 29 1998 2,332 1.75 3.79 1.69 3.85 1.69 3.85 7 1997(f) 150 1.76* 3.94* 1.70* 4.00* 1.70* 4.00* 3 Class C (9/94) 2002(g) 6,973 1.52* 4.22* 1.52* 4.22* 1.51* 4.23* -- 2001 6,046 1.55 4.28 1.55 4.28 1.53 4.29 28 2000 5,290 1.68 4.25 1.68 4.25 1.66 4.27 19 1999 4,089 1.57 4.03 1.51 4.10 1.50 4.10 29 1998 2,606 1.55 4.01 1.49 4.07 1.49 4.07 7 1997(d) 2,103 1.57* 4.28* 1.50* 4.35* 1.50* 4.35* 3 1997(e) 1,985 1.87 3.93 1.75 4.05 1.75 4.05 4 Class R (12/91) 2002(g) 41,175 .77* 4.97* .77* 4.97* .76* 4.98* -- 2001 40,619 .80 5.03 .80 5.03 .78 5.04 28 2000 38,840 .92 4.98 .92 4.99 .90 5.00 19 1999 44,411 .82 4.77 .75 4.83 .75 4.83 29 1998 44,599 .80 4.76 .74 4.82 .74 4.82 7 1997(d) 43,306 .82* 5.03* .75* 5.10* .75* 5.10* 3 1997(e) 43,738 .87 4.94 .75 5.06 .75 5.06 4 ----------------------------------------------------------------------------------------------
* Annualized. (a) Total returns are calculated on net asset value without any sales charge and are not annualized. (b) After expense reimbursement from the investment adviser, where applicable. (c) After custodian fee credit and expense reimbursement, where applicable. (d) For the four months ended May 31. (e) For the year ended January 31. (f) From commencement of class operations as noted. (g) For the six months ended November 30, 2001. See accompanying notes to financial statements. ------------------------------------------------------------------------------- 31 Financial Highlights (Unaudited) (continued) Selected data for a share outstanding throughout each period:
Class (Inception Date) Investment Operations Less Distributions ------------------------- ----------------------- PENNSYLVANIA Net From Realized/ and in Unrealized Excess Beginning Net Invest- of Net Ending Net Invest- ment Invest- Net Year Ended Asset ment Gain ment Capital Asset Total May 31, Value Income (Loss) Total Income Gains Total Value Return(a) ---------------------------------------------------------------------------------------------- Class A (10/86) 2002(e) $10.06 $.26 $ .19 $ .45 $(.26) $ -- $(.26) $10.25 4.61% 2001 9.38 .53 .66 1.19 (.51) -- (.51) 10.06 12.81 2000 10.45 .50 (1.03) (.53) (.51) (.03) (.54) 9.38 (5.21) 1999 10.68 .53 (.17) .36 (.53) (.06) (.59) 10.45 3.42 1998 10.25 .56 .45 1.01 (.56) (.02) (.58) 10.68 10.05 1997 10.00 .57 .25 .82 (.57) -- (.57) 10.25 8.37 Class B (2/97) 2002(e) 10.07 .22 .21 .43 (.23) -- (.23) 10.27 4.24 2001 9.40 .46 .65 1.11 (.44) -- (.44) 10.07 11.97 2000 10.47 .42 (1.03) (.61) (.43) (.03) (.46) 9.40 (5.91) 1999 10.70 .45 (.17) .28 (.45) (.06) (.51) 10.47 2.66 1998 10.27 .48 .45 .93 (.48) (.02) (.50) 10.70 9.23 1997(d) 10.21 .16 .06 .22 (.16) -- (.16) 10.27 2.18 Class C (2/94) 2002(e) 10.04 .23 .20 .43 (.23) -- (.23) 10.24 4.34 2001 9.37 .48 .65 1.13 (.46) -- (.46) 10.04 12.21 2000 10.44 .44 (1.03) (.59) (.45) (.03) (.48) 9.37 (5.73) 1999 10.68 .47 (.17) .30 (.48) (.06) (.54) 10.44 2.80 1998 10.25 .50 .45 .95 (.50) (.02) (.52) 10.68 9.50 1997 9.99 .51 .26 .77 (.51) -- (.51) 10.25 7.88 Class R (2/97) 2002(e) 10.05 .27 .20 .47 (.27) -- (.27) 10.25 4.72 2001 9.38 .55 .65 1.20 (.53) -- (.53) 10.05 13.01 2000 10.44 .51 (1.01) (.50) (.53) (.03) (.56) 9.38 (4.93) 1999 10.68 .55 (.17) .38 (.56) (.06) (.62) 10.44 3.55 1998 10.25 .58 .45 1.03 (.58) (.02) (.60) 10.68 10.30 1997(d) 10.21 .20 .03 .23 (.19) -- (.19) 10.25 2.31 ---------------------------------------------------------------------------------------------- Class (Inception Date) Ratios/Supplemental Data --------------------------------------------------------------------------------- Before Credit/ After After Credit/ Reimbursement Reimbursement(b) Reimbursement(c) PENNSYLVANIA -------------------- -------------------- -------------------- Ratio Ratio Ratio of Net of Net of Net Invest- Invest- Invest- Ratio of ment Ratio of ment Ratio of ment Expenses Income Expenses Income Expenses Income Ending to to to to to to Net Average Average Average Average Average Average Portfolio Year Ended Assets Net Net Net Net Net Net Turnover May 31, (000) Assets Assets Assets Assets Assets Assets Rate ---------------------------------------------------------------------------------------------- Class A (10/86) 2002(e) $63,626 .93%* 5.10%* .93%* 5.10%* .92%* 5.11%* 8% 2001 60,278 1.00 5.37 1.00 5.37 .98 5.38 21 2000 55,564 1.12 5.04 1.10 5.06 1.09 5.07 16 1999 70,865 .94 4.75 .69 5.00 .69 5.00 18 1998 65,826 .95 4.94 .61 5.28 .61 5.28 20 1997 55,667 1.09 5.22 .70 5.61 .70 5.61 46 Class B (2/97) 2002(e) 10,297 1.68* 4.35* 1.68* 4.35* 1.68* 4.36* 8 2001 9,440 1.75 4.62 1.75 4.62 1.73 4.63 21 2000 7,809 1.89 4.30 1.87 4.32 1.86 4.32 16 1999 7,966 1.69 4.02 1.45 4.25 1.45 4.26 18 1998 2,640 1.70 4.14 1.34 4.50 1.34 4.50 20 1997(d) 229 1.72* 4.47* 1.35* 4.84* 1.35* 4.84* 46 Class C (2/94) 2002(e) 12,019 1.48* 4.55* 1.48* 4.55* 1.47* 4.56* 8 2001 10,152 1.55 4.82 1.55 4.82 1.53 4.83 21 2000 9,672 1.66 4.49 1.64 4.52 1.63 4.52 16 1999 13,167 1.49 4.21 1.25 4.45 1.24 4.46 18 1998 8,912 1.50 4.39 1.16 4.73 1.16 4.73 20 1997 6,320 1.63 4.68 1.25 5.06 1.25 5.06 46 Class R (2/97) 2002(e) 57,332 .73* 5.30* .73* 5.30* .72* 5.31* 8 2001 55,290 .80 5.57 .80 5.57 .78 5.58 21 2000 51,788 .94 5.24 .91 5.26 .91 5.27 16 1999 61,044 .74 4.95 .49 5.20 .49 5.20 18 1998 61,180 .75 5.14 .41 5.48 .41 5.48 20 1997(d) 57,383 .77* 5.45* .39* 5.83* .39* 5.83* 46 ----------------------------------------------------------------------------------------------
* Annualized. (a) Total returns are calculated on net asset value without any sales charge and are not annualized. (b) After expense reimbursement from the investment adviser, where applicable. (c) After custodian fee credit and expense reimbursement, where applicable. (d) From commencement of class operations as noted. (e) For the six months ended November 30, 2001. See accompanying notes to financial statements. ------------------------------------------------------------------------------- 32 Selected data for a share outstanding throughout each period:
Class (Inception Date) Investment Operations Less Distributions ------------------------- ----------------------- VIRGINIA Net Realized/ Beginning Net Unrealized Net Ending Net Invest- Invest- Invest- Net Year Ended Asset ment ment Gain ment Capital Asset Total May 31, Value Income (Loss) Total Income Gains Total Value Return(a) ---------------------------------------------------------------------------------------------------- Class A (3/86) 2002(e) $10.69 $.27 $ .04 $ .31 $(.26) $ -- $(.26) $10.74 2.95% 2001 10.10 .54 .58 1.12 (.53) -- (.53) 10.69 11.27 2000 10.93 .53 (.83) (.30) (.52) (.01) (.53) 10.10 (2.72) 1999 11.06 .53 (.10) .43 (.53) (.03) (.56) 10.93 3.95 1998 10.66 .56 .41 .97 (.56) (.01) (.57) 11.06 9.30 1997 10.40 .58 .25 .83 (.57) -- (.57) 10.66 8.20 Class B (2/97) 2002(e) 10.67 .23 .06 .29 (.23) -- (.23) 10.73 2.68 2001 10.10 .46 .56 1.02 (.45) -- (.45) 10.67 10.26 2000 10.93 .45 (.82) (.37) (.45) (.01) (.46) 10.10 (3.44) 1999 11.06 .45 (.10) .35 (.45) (.03) (.48) 10.93 3.20 1998 10.66 .48 .41 .89 (.48) (.01) (.49) 11.06 8.53 1997(d) 10.62 .16 .04 .20 (.16) -- (.16) 10.66 1.94 Class C (10/93) 2002(e) 10.67 .24 .05 .29 (.24) -- (.24) 10.72 2.69 2001 10.10 .48 .57 1.05 (.48) -- (.48) 10.67 10.50 2000 10.92 .47 (.81) (.34) (.47) (.01) (.48) 10.10 (3.16) 1999 11.06 .47 (.11) .36 (.47) (.03) (.50) 10.92 3.30 1998 10.65 .50 .42 .92 (.50) (.01) (.51) 11.06 8.81 1997 10.39 .52 .26 .78 (.52) -- (.52) 10.65 7.61 Class R (2/97) 2002(e) 10.67 .28 .06 .34 (.28) -- (.28) 10.73 3.16 2001 10.10 .56 .56 1.12 (.55) -- (.55) 10.67 11.32 2000 10.93 .55 (.82) (.27) (.55) (.01) (.56) 10.10 (2.49) 1999 11.06 .56 (.10) .46 (.56) (.03) (.59) 10.93 4.18 1998 10.66 .59 .41 1.00 (.59) (.01) (.60) 11.06 9.54 1997(d) 10.62 .20 .04 .24 (.20) -- (.20) 10.66 2.26 ---------------------------------------------------------------------------------------------------- Class (Inception Date) Ratios/Supplemental Data ------------------------------------------------------------------------------------ Before Credit/ After After Credit/ Reimbursement Reimbursement(b) Reimbursement(c) VIRGINIA -------------------- -------------------- -------------------- Ratio Ratio Ratio of Net of Net of Net Invest- Invest- Invest- Ratio of ment Ratio of ment Ratio of ment Expenses Income Expenses Income Expenses Income Ending to to to to to to Net Average Average Average Average Average Average Portfolio Year Ended Assets Net Net Net Net Net Net Turnover May 31, (000) Assets Assets Assets Assets Assets Assets Rate ---------------------------------------------------------------------------------------------------- Class A (3/86) 2002(e) $140,954 .89%* 5.04%* .89%* 5.04%* .88%* 5.04%* 4% 2001 136,248 .91 5.14 .91 5.14 .90 5.14 17 2000 125,522 1.00 5.07 1.00 5.07 .99 5.08 22 1999 138,941 .89 4.78 .86 4.81 .86 4.81 15 1998 133,966 .90 4.99 .74 5.15 .74 5.15 3 1997 122,252 1.00 5.19 .74 5.45 .74 5.45 23 Class B (2/97) 2002(e) 14,959 1.64* 4.28* 1.64* 4.28* 1.63* 4.29* 4 2001 13,094 1.66 4.38 1.66 4.38 1.65 4.39 17 2000 10,713 1.75 4.32 1.75 4.32 1.75 4.33 22 1999 10,419 1.64 4.02 1.61 4.05 1.61 4.06 15 1998 3,894 1.64 4.20 1.51 4.33 1.51 4.33 3 1997(d) 381 1.66* 4.49* 1.47* 4.68* 1.47* 4.68* 23 Class C (10/93) 2002(e) 16,286 1.44* 4.49* 1.44* 4.49* 1.43* 4.49* 4 2001 15,468 1.46 4.59 1.46 4.59 1.45 4.59 17 2000 14,263 1.55 4.53 1.55 4.53 1.54 4.53 22 1999 17,679 1.44 4.23 1.41 4.26 1.41 4.26 15 1998 15,660 1.44 4.44 1.29 4.59 1.29 4.59 3 1997 11,700 1.55 4.63 1.29 4.89 1.29 4.89 23 Class R (2/97) 2002(e) 51,843 .69* 5.24* .69* 5.24* .68* 5.24* 4 2001 52,203 .71 5.34 .71 5.34 .71 5.34 17 2000 50,403 .80 5.27 .80 5.27 .79 5.28 22 1999 56,728 .69 4.98 .66 5.01 .66 5.02 15 1998 58,734 .70 5.19 .54 5.35 .54 5.35 3 1997(d) 57,002 .71* 5.50* .52* 5.69* .52* 5.69* 23 ----------------------------------------------------------------------------------------------------
* Annualized. (a) Total returns are calculated on net asset value without any sales charge and are not annualized. (b) After expense reimbursement from the investment adviser, where applicable. (c) After custodian fee credit and expense reimbursement, where applicable. (d) From commencement of class operations as noted. (e) For the six months ended November 30, 2001. See accompanying notes to financial statements. ------------------------------------------------------------------------------- 33 Notes ----- 34 Notes ----- 35 Notes ----- 36 Fund Information Board of Trustees Robert P. Bremner Lawrence H. Brown Anne E. Impellizzeri Peter R. Sawers William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Fund Manager Nuveen Investment Management 333 West Wacker Drive Chicago, IL 60606 Legal Counsel Morgan, Lewis & Bockius LLP Washington, D.C. Independent Public Accountants Arthur Andersen LLP Chicago, IL Transfer Agent and Shareholder Services J.P. Morgan Investor Services Co. Nuveen Investor Services P.O. Box 660086 Dallas, Texas 75266-0086 (800) 257-8787 NASD Regulation, Inc. provides a Public Disclosure Program which supplies certain information regarding the disciplinary history of NASD members and their associated persons in response to either telephone inquiries at (800) 289-9999 or written inquiries at www.nasdr.com. NASD Regulation, Inc. also provides an investor brochure that includes information describing the Public Disclosure Program. ----- 37 Serving Investors For Generations -------------------------------------------------------------------------------- A 100-Year Tradition of Quality Investments [PHOTO OF JOHN NUVEEN SR. APPEARS HERE] John Nuveen, Sr. Since 1898, John Nuveen & Co. Incorporated has been synonymous with investments that withstand the test of time. In fact, more than 1.3 million investors have trusted Nuveen to help them build and sustain the wealth of a lifetime. Whether your focus is long-term growth, dependable income or sustaining accumulated wealth, Nuveen offers a wide variety of investments and services to help meet your unique circumstances and financial planning needs. We can help you build a better, well-diversified portfolio. Call Your Financial Advisor Today To find out how Nuveen Mutual Funds might round out your investment portfolio, contact your financial advisor today. Or call Nuveen at (800) 257-8787 for more information. Ask your advisor or call for a prospectus, which details risks, fees and expenses. Please read the prospectus carefully before you invest. NUVEEN Investments Nuveen Investments 333 West Wacker Drive Chicago, Illinois 60606-1286 www.nuveen.com