-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PJxPKAJ+dM7w+LWe4/Vt//ycw9D5tdMOBRXQqg5sd/c0s1t98K24VfcE6bJoiR1e RbW9JgfTcVUHe4sXTDdU2g== 0000891804-97-000187.txt : 19970603 0000891804-97-000187.hdr.sgml : 19970603 ACCESSION NUMBER: 0000891804-97-000187 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970602 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN INSURED NEW YORK SELECT TAX FREE INCOME PORTFOLIO CENTRAL INDEX KEY: 0000885731 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MA FISCAL YEAR END: 0330 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-06624 FILM NUMBER: 97617800 BUSINESS ADDRESS: STREET 1: 333 W WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178200 N-30D 1 NUVEEN INS NEW YORK SEL TAX-FREE INCOME PORT(NXN) Nuveen Exchange-Traded Portfolios Providing tax-free income to help you live your dreams SELECT TAX-FREE (NXP) SELECT TAX-FREE 2 (NXQ) SELECT TAX-FREE 3 (NXR) INSURED CALIFORNIA SELECT TAX-FREE (NXC) INSURED NEW YORK SELECT TAX-FREE (NXN) ANNUAL REPORT/MARCH 31, 1997 Photographic image of couple walking on beach. CONTENTS 3 Dear shareholder 5 Answering your questions 8 Fund performance 11 Commonly used terms 12 Shareholder meeting report 13 Report of independent auditors 14 Portfolio of investments 40 Statement of net assets 42 Statement of operations 44 Statement of changes in net assets 47 Notes to financial statements 56 Financial highlights Photographic image of headshot of Chairman and Chief Executive Officer of Nuveen. "Over the past year, the Select Portfolios have continued to meet their primary goal of providing stable income." It's a pleasure to have this opportunity to report to you on the annual performance of the Nuveen Select Tax-Free Portfolios. These portfolios, with their unique product structure, have a life cycle that is designed--and managed--for exceptional income stability. Over the past year, the Select Portfolios have continued to meet their primary goal of providing that stable level of income, even during different market cycles. This stability is demonstrated by the fact that the Select Portfolios maintained extended periods without significant dividend changes, ranging from nine months to 48 months without a change, as shown on pages 8-10 of this report. As of March 31, 1997, shareholders in the Select Portfolios were receiving annual tax-free yields on net asset value that ranged from 5.79% to 6.29%. To match these attractive yields, investors in the 31% federal income tax bracket would have had to earn at least 8.39% on taxable alternatives of comparable quality. When state taxes for the California and New York portfolios are taken into account, the tax-free advantage is even greater. As the Select Portfolios met their goal of income stability, they also maintained credit quality while moderating the effects of market volatility. The net asset value per share of the average Select Portfolio has closely followed the movement of the Lehman Municipal Bond Index over the past year. During this period, the portfolios generated total returns, including reinvested dividends and capital gains (if any) and changes in net asset value, of 5.79% to 6.85%, equivalent to taxable total returns of 9.61% to 10.23% for investors in the 31% federal income tax bracket. This level of performance gains added significance when viewed in the context of the 1996 bond market, which underwent a mid-year decline followed by a post-election rally to end the year slightly lower than where it began. Over the past year, Nuveen has made meaningful expansions to the range of investment options that we offer to our shareholders, as we continue to help investors keep more of what they earn. As part of this effort, we have added a new equity fund, which is designed to offer prudent investors superior market performance with less risk than the overall stock market, as well as two balanced mutual funds, each designed to give investors the combination of performance potential and a measure of downside protection that comes from a carefully assembled balance of stocks and bonds. In addition, we have increased the range of investment solutions available to our investors by acquiring Flagship Resources Inc., a highly regarded provider of fixed-income mutual funds. The resulting selection of municipal bond funds is the broadest available. For more complete information regarding Nuveen investment products, including charges and expenses, call Nuveen at 1-800-257-8787 or contact your investment adviser for a prospectus. Please read the information carefully before you invest. In all our efforts, our focus continues to be on understanding the goals of Nuveen investors and providing the investments you need to achieve wealth preservation, dependable income, and long-term asset growth. We thank you for your continued confidence in Nuveen and our family of investments, and we look forward to continuing to serve your investment needs in the future. Sincerely, /s/ Anthony T. Dean Anthony T. Dean Chairman of the Board May 15, 1997 Answering your questions Ron Toupin, manager of Nuveen's Select Portfolios, reviews the municipal bond market and offers insights into the strategies Nuveen uses to manage the portfolios How would you summarize the bond market over the past 12 months? Over the past year, a steady stream of mixed economic reports resulted in conflicting interest rate and inflation forecasts, which caused investors to view the markets with alternating enthusiasm and uncertainty. In the third quarter of 1996, evidence of an economic slowdown, the strong U.S. dollar, and lack of inflationary pressures combined to allay investor fears, sparking a rally in bonds that continued through the post-election period. In early 1997, talk of inflation re-emerged, and the markets have kept a close eye on the Federal Reserve to see how seriously it regards such talk. Throughout much of the year, euphoria in the equity market focused investors' attention on stocks and brought record amounts of new money into equity-based mutual funds, bypassing the bond market. Some investors, concerned about a potential stock market correction, decided to take their profits, but adopted a wait-and-see attitude about investing capital gains, electing to go with short-term vehicles until a clearer picture of market trends emerged. These events affected demand for bond issues of all types during the past 12 months. Even with relative stability, interest rates have continued to play a role in bond market performance. The Federal Reserve altered interest rates only once in 1996, at the very beginning of the year, but anticipation of further moves has kept the markets restless. With one rate increase approved already this year, the concern about potential changes in monetary policy--and the effect of such changes on the markets--continues in 1997. What strategies did you use to add value during this market? Our portfolio management strategy focuses on the principles of conservative value investing, sound research and credit surveillance activities, and senior management involvement. Investment decisions are based on a stringent set of criteria, as described in each portfolio's prospectus. The Select Portfolios were designed to be a source of steady tax-free income with a known maturity schedule. They provide income and maturity similar to individual bonds, while offering the benefits of active management and ongoing credit surveillance. Termination is expected in 2017, at which time proceeds of maturing or sold bonds will be returned to investors. Accordingly, stability of tax-free income is the foremost portfolio objective. We make changes only when we can improve credit quality or earnings, or to reinvest proceeds of called bonds. What role does research play in helping you manage the portfolio? As an integral part of our portfolio management strategy, the Nuveen Research department provides portfolio managers with objective appraisals of the creditworthiness of new municipal issues, while maintaining surveillance of the credit performance for all portfolio holdings. To track individual holdings, each Nuveen Research analyst is responsible for a specific surveillance portfolio, which is defined in terms of geography and sector (e.g., healthcare, housing). Specialization by sector enables our Research teams to focus their credit quality evaluation efforts and complement the vantage point of each portfolio manager. Photographic image of Ron Toupin. Ron Toupin answers investors' questions on developments in the municipal market.
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO NXP In keeping with the Portfolio's goal of providing dependable tax-free income, shareholders enjoyed 12 months of steady, attractive dividends. This dividend has remained stable for the last 17 months. 12 MONTH DIVIDEND HISTORY Date Monthly Dividends Supplemental Dividends Capital Gains 4/11/96 $0.0765 5/13/96 $0.0765 6/12/96 $0.0765 7/11/96 $0.0765 8/13/96 $0.0765 9/11/96 $0.0765 10/10/96 $0.0765 11/13/96 $0.0765 12/11/96 $0.0765 1/13/97 $0.0765 2/12/97 $0.0765 3/12/97 $0.0765 FUND HIGHLIGHTS 3/31/97 Yield 6.22% Taxable-equivalent yield 9.72% Annual total return on NAV 6.79% Taxable-equivalent total return 10.32% Share price $14.75 NAV $15.15 The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the Fund.
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2 NXQ While its yield remains attractive compared with those of other fixed-income alternatives, the Portfolio adjusted its monthly tax-free dividend last July, after more than 47 months at its previous rate, bringing it in line with the Portfolio's current earnings rate. 12 MONTH DIVIDEND HISTORY Date Monthly Dividends Supplemental Dividends Capital Gains 4/11/96 $0.0756 5/13/96 $0.0756 6/12/96 $0.0756 7/11/96 $0.0740 8/13/96 $0.0740 9/11/96 $0.0740 10/10/96 $0.0740 11/13/96 $0.0740 12/11/96 $0.0740 1/13/97 $0.0740 2/12/97 $0.0740 3/12/97 $0.0740 FUND HIGHLIGHTS 3/31/97 Yield 6.29% Taxable-equivalent yield 9.83% Annual total return on NAV 6.34% Taxable-equivalent total return 9.80% Share price $14.125 NAV $14.95 The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the Fund.
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3 NXR While its yield remains attractive compared with those of other fixed-income alternatives, the Portfolio adjusted its monthly tax-free dividend last July, after more than 37 months at its previous rate, bringing it in line with the Portfolio's current earnings rate. 12 MONTH DIVIDEND HISTORY Date Monthly Dividends Supplemental Dividends Capital Gains 4/11/96 $0.0700 5/13/96 $0.0700 6/12/96 $0.0700 7/11/96 $0.0690 8/13/96 $0.0690 9/11/96 $0.0690 10/10/96 $0.0690 11/13/96 $0.0690 12/11/96 $0.0690 1/13/97 $0.0690 2/12/97 $0.0690 3/12/97 $0.0690 FUND HIGHLIGHTS 3/31/97 Yield 6.25% Taxable-equivalent yield 9.77% Annual total return on NAV 6.85% Taxable-equivalent total return 10.23% Share price $13.25 NAV $14.35 The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the Fund.
NUVEEN INSURED CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO NXC In keeping with the Portfolio's goal of providing dependable tax-free income, shareholders enjoyed 12 months of steady, attractive dividends. This dividend has remained stable for the last 17 months. 12 MONTH DIVIDEND HISTORY Date Monthly Dividends Supplemental Dividends Capital Gains 4/11/96 $0.0670 5/13/96 $0.0670 6/12/96 $0.0670 7/11/96 $0.0670 8/13/96 $0.0670 9/11/96 $0.0670 10/10/96 $0.0670 11/13/96 $0.0670 12/11/96 $0.0670 1/13/97 $0.0670 2/12/97 $0.0670 3/12/97 $0.0670 FUND HIGHLIGHTS 3/31/97 Yield 5.79% Taxable-equivalent yield 9.98% Annual total return on NAV 6.46% Taxable-equivalent total return 10.60% Share price $13.875 NAV $14.53 The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the Fund.
NUVEEN INSURED NEW YORK SELECT TAX-FREE INCOME PORTFOLIO NXN In keeping with the Portfolio's goal of providing dependable tax-free income, shareholders enjoyed 12 months of steady, attractive dividends. This dividend has remained stable for the last 48 months. 12 MONTH DIVIDEND HISTORY Date Monthly Dividends Supplemental Dividends Capital Gains 4/11/96 $0.0650 5/13/96 $0.0650 6/12/96 $0.0650 7/11/96 $0.0650 8/13/96 $0.0650 9/11/96 $0.0650 10/10/96 $0.0650 11/13/96 $0.0650 12/11/96 $0.0650 1/13/97 $0.0650 2/12/97 $0.0650 3/12/97 $0.0650 FUND HIGHLIGHTS 3/31/97 Yield 5.83% Taxable-equivalent yield 9.80% Annual total return on NAV 5.79% Taxable-equivalent total return 9.61% Share price $13.375 NAV $14.28 The dividend history used in this chart constitutes past performance and does not necessarily predict the future dividends of the Fund.
Commonly used terms Yield An exchange-traded portfolio's annualized monthly dividend on a given date divided by its closing price per share on that date. Taxable equivalent yield The return an investor subject to a given state and federal income tax rate would need to obtain from a fully taxable investment to equal the portfolio's stated annualized yield on share price. In this report, these tax rates are assumed to be 36% for NXP, NXQ and NXR, 42% for NXC, and 40.5% for NXN, based on 1997 incomes of $124,650-$271,050 for investors filing singly, $151,750-$271,050 for those filing jointly. Net Asset Value (NAV) The market value of all securities and other assets held by a portfolio, minus any liabilities. The NAV per share is the portfolio's net assets divided by the total number of shares outstanding. Total return on NAV The percentage change in a portfolio's NAV per share, assuming reinvestment of all dividends and capital gains distributions, if any. Taxable equivalent total return The total return an investor subject to a given state and federal income tax rate would need to obtain from a fully taxable investment to equal the portfolio's stated total return on NAV.
SHAREHOLDER MEETING REPORT On July 18, 1996, the following Nuveen Exchange-Traded Portfolios held an Annual Meeting of Shareholders. At the meeting, shareholders voted to elect trustees of the Portfolios and to ratify the selection of Ernst & Young L.L.P as the auditors for the Portfolios. The trustees elected at the meeting include: James E. Bacon, Anthony T. Dean, William L. Kissick, Thomas E. Leafstrand, Timothy R. Schwertfeger and Sheila W. Wellington. NXP NXQ NXR NXC NXN Common Common Common Common Common Shares Shares Shares Shares Shares - -------------------------------------------------------------------------------------------------------------------------- APPROVAL OF THE TRUSTEES WAS REACHED AS FOLLOWS: James E. Bacon For 14,448,751 15,735,836 11,665,282 5,654,203 3,506,404 Withhold 143,456 120,769 106,831 62,294 25,840 ---------- ---------- ---------- ---------- ---------- Total 14,592,207 15,856,605 11,772,113 5,716,497 3,532,244 ========== ========== ========== ========== ========== Anthony T. Dean For 14,447,751 15,739,531 11,670,824 5,655,503 3,506,404 Withhold 144,456 117,074 101,289 60,994 25,840 ---------- ---------- ---------- ---------- ---------- Total 14,592,207 15,856,605 11,772,113 5,716,497 3,532,244 ========== ========== ========== ========== ========== William L. Kissick For 14,449,251 15,740,031 11,671,192 5,653,886 3,506,104 Withhold 142,956 116,574 100,921 62,611 26,140 ---------- ---------- ---------- ---------- ---------- Total 14,592,207 15,856,605 11,772,113 5,716,497 3,532,244 ========== ========== ========== ========== ========== Thomas E. Leafstrand For 14,447,801 15,736,310 11,667,482 5,657,803 3,502,354 Withhold 144,406 120,295 104,631 58,694 29,740 ---------- ---------- ---------- ---------- ---------- Total 14,592,207 15,856,605 11,772,113 5,716,497 3,532,094 ========== ========== ========== ========== ========== Timothy R. Schwertfeger For 14,441,768 15,737,631 11,669,192 5,656,803 3,497,204 Withhold 150,439 118,974 102,921 59,694 35,040 ---------- ---------- ---------- ---------- ---------- Total 14,592,207 15,856,605 11,772,113 5,716,497 3,532,244 ========== ========== ========== ========== ========== Sheila W. Wellington For 14,437,175 15,734,223 11,671,167 5,657,103 3,506,404 Withhold 155,032 122,382 100,946 59,394 25,840 ---------- ---------- ---------- ---------- ---------- Total 14,592,207 15,856,605 11,772,113 5,716,497 3,532,244 ========== ========== ========== ========== ========== RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS: For 14,366,323 15,640,735 11,633,384 5,628,137 3,502,611 Against 49,718 46,038 50,987 6,467 6,909 Abstain 176,166 169,832 92,742 81,893 22,729 ---------- ---------- ---------- ---------- ---------- Total 14,592,207 15,856,605 11,777,113 5,716,497 3,532,249 ========== ========== ========== ========== ==========
REPORT OF INDEPENDENT AUDITORS The Boards of Trustees and Shareholders Nuveen Select Tax-Free Income Portfolio Nuveen Select Tax-Free Income Portfolio 2 Nuveen Select Tax-Free Income Portfolio 3 Nuveen Insured California Select Tax-Free Income Portfolio Nuveen Insured New York Select Tax-Free Income Portfolio We have audited the accompanying statements of net assets, including the portfolios of investments, of Nuveen Select Tax-Free Income Portfolio, Nuveen Select Tax-Free Income Portfolio 2, Nuveen Select Tax-Free Income Portfolio 3, Nuveen Insured California Select Tax-Free Income Portfolio, and Nuveen Insured New York Select Tax-Free Income Portfolio as of March 31, 1997, and the related statements of operations, changes in net assets and the financial highlights for the periods indicated therein. These financial statements and financial highlights are the responsibility of the Trusts' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of investments owned as of March 31, 1997, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Nuveen Select Tax-Free Income Portfolio, Nuveen Select Tax-Free Income Portfolio 2, Nuveen Select Tax-Free Income Portfolio 3, Nuveen Insured California Select Tax-Free Income Portfolio, and Nuveen Insured New York Select Tax-Free Income Portfolio at March 31, 1997, and the results of their operations, changes in their net assets and financial highlights for the periods indicated therein in conformity with generally accepted accounting principles. /s/ Ernst & Young LLP Chicago, Illinois May 9, 1997
PORTFOLIO OF INVESTMENTS NUVEEN SELECT TAX-FREE INCOME PORTFOLIO (NXP) PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE ALABAMA - 0.2% $ 535,000 Alabama Housing Finance Authority, Single Family Mortgage Revenue Bonds (Collateralized Home Mortgage Revenue Bond Program), 1994 Series A-1 Bonds, 6.550%, 10/01/14 Aaa 4/04 at 102 $ 558,636 - ------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.1% 2,500,000 Little Rock Health Facilities Board (Arkansas), Refunding Revenue Bonds (Baptist Medical Center/Parkway Village Project), Series 1992, 7.000%, 10/01/17 A 4/02 at 102 2,666,750 - ------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 6.7% 4,750,000 California State Public Works Board, Lease Revenue Bonds (California Community Colleges), 1994 Series B, 7.000%, 3/01/14 (Pre-refunded to 3/01/04) Aaa 3/04 at 102 5,434,618 4,905,000 California Statewide Communities Development Authority, Revenue Certificates of Participation (Cedars-Sinai Medical Center), 6.500%, 8/01/15 A1 8/02 at 102 5,064,413 3,000,000 State Public Works Board of the State of California Lease Revenue Bonds (Department of Corrections), 1994 Series A (California State of Prison-Monterey County (Soledad II), 6.875%, 11/01/14 (Pre-refunded to 11/01/04) Aaa 11/04 at 102 3,439,710 2,000,000 Los Angeles County Metropolitan Transportation Authority (California), Proposition A, Sales Tax Revenue Refunding Bonds, Series 1993-A, 5.625%, 7/01/18 Aaa 7/03 at 102 1,925,480 750,000 City of Walnut Creek, California, Certificates of Participation, Refunding Series 1994 (John Muir Medical Center), 5.000%, 2/15/16 Aaa 2/04 at 102 674,123 - ------------------------------------------------------------------------------------------------------------------ COLORADO - 7.5% Colorado Housing Finance Authority, Single Family Program Senior Revenue Bonds, Series 1992A-1: 4,295,000 6.800%, 11/01/12 AA 5/02 at 102 4,518,426 1,205,000 6.875%, 11/01/16 AA 5/02 at 102 1,264,334 10,750,000 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax) Baa No Opt. Call 12,704,350 - ------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.4% 1,000,000 District of Columbia, Hospital Revenue and Refunding Bonds (Medlantic Healthcare Group, Inc. Issue), Series 1996A, 5.750%, 8/15/16 Aaa 8/06 at 102 977,660 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE FLORIDA - 3.9% $ 7,000,000 State Board of Education of Florida, Public Education Capital Outlay Bonds, Series 1991-C, 6.625%, 6/01/22 (Pre-refunded to 6/01/02) Aaa 6/02 at 101 $ 7,642,740 2,000,000 Escambia County, Florida, Pollution Control Revenue Bonds (Champion International Project), Series 1993, 5.875%, 6/01/22 (Alternative Minimum Tax) Baa1 12/03 at 102 1,911,400 - ------------------------------------------------------------------------------------------------------------------ ILLINOIS - 11.9% 1,260,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds, (Loyola University of Chicago), Series 1991-A, 7.125%, 7/01/11 A1 7/01 at 102 1,372,304 3,000,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds (Loyola University of Chicago), Series 1989-A, 6.100%, 7/01/15 A1 7/03 at 102 3,071,970 2,365,000 Illinois Health Facilities Authority, Revenue Bonds and Revenue Refunding Bonds, Series 1992B (Evangelical Hospitals Corporation), 6.500%, 4/15/09 AA- No Opt. Call 2,580,097 3,850,000 Illinois Health Facilities Authority, Revenue Bonds (Sarah Bush Lincoln Health Center), Series 1992, 7.250%, 5/15/22 (Pre-refunded to 5/15/02) Aaa 5/02 at 102 4,321,818 2,000,000 State of Illinois General Obligation Bonds, Series of August 1994, 5.875%, 8/01/14 AA- 8/04 at 102 2,010,500 City of Chicago Heights, Illinois, General Obligation Bonds, Series 1993 (Corporate Purpose Bonds): 3,820,000 5.650%, 12/01/15 Aaa 12/08 at 100 3,728,473 2,600,000 5.650%, 12/01/17 Aaa 12/08 at 100 2,515,188 7,000,000 The County of Cook, Illinois, General Obligation Bonds, Series 1992A, 6.600%, 11/15/22 Aaa 11/02 at 102 7,514,710 2,500,000 Regional Transportation Authority (Cook, DuPage, Kane, Lake, McHenry and Will Counties in Illinois), General Obligation Bonds, Series 1993A, 5.800%, 6/01/13 Aaa 6/03 at 102 2,518,350 - ------------------------------------------------------------------------------------------------------------------ INDIANA - 2.7% 3,000,000 Indiana Bond Bank, Special Hospital Program (Hendricks Community Hospital Financing Program), Series 1992A, 7.125%, 4/01/13 A 4/02 at 102 3,250,170 Indiana Bond Bank, Special Program Bonds, Series 1992 A: 1,000,000 7.000%, 8/01/12 A 2/02 at 102 1,065,230 2,250,000 7.000%, 8/01/18 A 2/02 at 102 2,381,468 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE IOWA - 1.1% $ 2,565,000 Woodbury County, Iowa, Hospital Facility Revenue Bonds (St. Luke's Regional Medical Center Project), Series 1991A, 6.750%, 3/01/21 (Pre-refunded to 3/01/01) Aaa 3/01 at 102 $ 2,792,310 - ------------------------------------------------------------------------------------------------------------------ KANSAS - 3.9% 9,000,000 City of Wichita, Kansas, Revenue Bonds (CSJ Health System of Wichita, Inc.), Series 1985 XXV (Remarketed), 7.200%, 10/01/15 A 11/01 at 102 9,624,870 - ------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.4% 3,230,000 Lexington-Fayette Urban County Government (Kentucky), Governmental Project Revenue Bonds, Series 1994 (University of Kentucky Alumni Association, Inc. Commonwealth Library Project), 6.750%, 11/01/15 Aaa 11/04 at 102 3,546,637 - ------------------------------------------------------------------------------------------------------------------ MAINE - 2.4% Maine Educational Loan Authority, Educational Loan Revenue Bonds, Series 1992A-1 (Supplemental Educational Loan Program) : 2,040,000 6.800%, 12/01/07 (Alternative Minimum Tax) Aaa 12/02 at 102 2,145,876 2,310,000 7.000%, 12/01/16 (Alternative Minimum Tax) Aaa 12/02 at 102 2,433,562 1,270,000 Maine Educational Loan Authority, Educational Loan Revenue Bonds, Series 1992A-2 (Supplemental Educational Loan Program), 7.150%, 12/01/16 (Alternative Minimum Tax) A 12/02 at 102 1,343,800 - ------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 0.9% 2,000,000 Plymouth County (Massachusetts), Certificates of Participation (Plymouth County Correctional Facility), Series A, 7.000%, 4/01/22 A- 10/02 at 102 2,195,920 - ------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 1.5% 3,600,000 Calhoun County (Mississippi), Solid Waste Disposal Revenue Bonds (Weyerhauser Company Project), Series 1992, 6.875%, 4/01/16 (Alternative Minimum Tax) A 4/07 at 103 3,798,252 - ------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 4.2% 10,000,000 New Hampshire Housing Finance Authority, Multi-Family Housing Revenue Refunding Bonds, 1991 Series 1, 7.050%, 7/01/11 A1 7/01 at 102 10,459,900 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE NEW YORK - 11.7% $ 2,090,000 New York Local Government Assistance Corporation, New York, Series 1991B, 7,000%, 4/01/21 (Pre-refunded to 4/01/01) Aaa 4/01 at 100 $ 2,270,179 1,365,000 New York Local Government Assistance Corporation (A Public Benefit Corporation of the State of New York), Series 1991D Bonds, 7.000%, 4/01/18 (Pre-refunded to 4/01/02) Aaa 4/02 at 102 1,522,835 1,395,000 New York Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement Revenue Bonds, 1991 Series D, 7.400%, 2/15/18 (Pre-refunded to 2/15/02) Baal 2/02 at 102 1,568,733 1,425,000 New York Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement Revenue Bonds, 1991 Series D, 7.400%, 2/15/18 Baal 2/02 at 102 1,551,839 4,465,000 New York State Dormitory Authority, State University Educational Facilities Revenue Bonds, Series 1991A, 7.250%, 5/15/18 (Pre-refunded to 5/15/02) Aaa 5/02 at 102 5,038,217 1,080,000 New York State Medical Care Facilities Finance Agency, Mental Health Services Facilities, Improvement Revenue Bonds, 1991 Series A, 7.500%, 2/15/21 Baa1 2/01 at 102 1,185,916 7,250,000 Metropolitan Transportation Authority (New York), Commuter Facilities 1987 Service Contract Bonds, Series 5, 7.000%, 7/01/12 Baa1 7/01 at 102 7,767,215 3,000,000 Metropolitan Transportation Authority (New York), Transit Facilities Service Contract Bonds, Series N, 6.000%, 7/01/11 Baa1 7/02 at 100 2,950,380 5,170,000 The City of New York, New York, General Obligation Bonds, Fiscal 1995 Series A, 6.250%, 8/01/10 Baa1 8/04 at 101 1/2 5,246,051 - ------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 4.9% 2,500,000 Pennsylvania Higher Educational Facilities Authority Revenue Bonds (Thomas Jefferson University), 1992 Series A, 6.625%, 8/15/09 Aa3 8/02 at 1021 2,690,050 1,650,000 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 1992-33, 6.900%, 4/01/17 AA+ 4/02 at 102 1,730,421 7,235,000 Delaware County Authority (Pennsylvania), First Mortgage Revenue Bonds (The Dunwoody Project), Series 1992, 8.125%, 4/01/17 N/R 4/02 at 102 7,689,575 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE SOUTH CAROLINA - 3.9% $ 5,000,000 South Carolina Housing Finance and Development Authority, Multifamily Housing Revenue Bonds, 1992 Series A, 6.875%, 11/15/23 Aaa 5/02 at 102 $ 5,185,650 4,060,000 York County (South Carolina), Public Facilities Corporation, Certificates of Participation (York County Justice Center Project), Series 1991, 7.500%, 6/01/11 (Pre-refunded to 6/01/01) Aaa 6/01 at 102 4,549,717 - ------------------------------------------------------------------------------------------------------------------ TENNESSEE - 2.3% 5,750,000 Memphis-Shelby County Airport Authority (Tennessee), Airport Special Facilities and Project Revenue Bonds (Federal Express Corporation), Series 1993, 6.200%, 7/01/14 (Alternative Minimum Tax) BBB 7/03 at 102 5,768,458 - ------------------------------------------------------------------------------------------------------------------ TEXAS - 9.7% 9,825,000 Harris County Health Facilities Development Corporation (Texas), Hospital Revenue Bonds (Memorial Hospital System Project), Series 1992, 7.125%, 6/01/15 (Pre-refunded to 6/01/02) A2 6/02 at 102 11,030,821 4,000,000 Port of Corpus Christi Authority of Nueces County (Texas), Pollution Control Revenue Bonds (Hoechst Celanese Corporation), Series 1992, 6.875%, 4/01/17 (Alternative Minimum Tax) A+ 4/02 at 102 4,257,360 3,500,000 Red River Authority (Texas), Pollution Control Revenue Bonds (Hoechst Celanese Corporation), Series 1992, 6.875%, 4/01/17 (Alternative Minimum Tax) A+ 4/02 at 102 3,732,750 5,000,000 City of San Antonio, Texas, Water System Revenue Refunding Bonds, Series 1992, 6.000%, 5/15/16 Aaa 5/02 at 100 5,033,500 - ------------------------------------------------------------------------------------------------------------------ VIRGINIA - 2.1% 5,070,000 Virginia Housing Development Authority, Commonwealth Mortgage Bonds, 1992 Series A, 7.100%, 1/01/17 Aa1 1/02 at 102 5,265,853 - ------------------------------------------------------------------------------------------------------------------ WASHINGTON - 9.2% 2,750,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1992 (Sacred Heart Medical Center, Spokane), 6.875%, 2/15/12 AA- 2/02 at 102 2,925,560 10,000,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding Revenue Bonds, Series 1991A, 6.875%, 7/01/17 (Pre-refunded to 7/01/01) Aaa 7/01 at 102 10,982,100 2,500,000 Public Utility District No. 1 of Snohomish County, Washington, Electric System Refunding Revenue Bonds, Series 1991A, 7.000%, 1/01/16 A1 1/01 at 102 2,657,700 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE WASHINGTON (CONTINUED) $ 5,700,000 Public Utility District No. 1 of Snohomish County, Washington, Generation System Revenue Bonds, Series 1989, 6.750%, 1/01/12 Aaa 1/02 at 102 $ 6,372,941 - ------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 1.3% 1,000,000 West Virginia Housing Development Fund, Housing Finance Bonds, 1992 Series A, 7.000%, 5/01/24 Aaa 5/02 at 103 1,050,190 1,885,000 Marshall County, West Virginia, Special Obligation Refunding Bonds, Series 1992, 6.500%, 5/15/10 AAA No Opt. Call 2,075,196 - ------------------------------------------------------------------------------------------------------------------ WISCONSIN - 2.1% 5,000,000 Wisconsin Housing and Economic Development Authority, Multi-Family Housing Revenue Bonds, 1992 Series B, 7.050%, 11/01/22 A1 4/02 at 102 5,296,500 - ------------------------------------------------------------------------------------------------------------------ WYOMING - 1.3% 3,000,000 Wyoming Community Development Authority, Single Family Mortgage Revenue Bonds (Federally Insured or Guaranteed Mortgage Loans), Series 1988-G, 7.200%, 6/01/10 (Alternative Minimum Tax) Aa 11/01 at 103 3,169,050 - ------------------------------------------------------------------------------------------------------------------ $228,015,000 Total Investments - (cost $223,621,178) - 98.3% 244,018,802 =================------------------------------------------------------------------------------------------------- TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.1% $ 200,000 The Wake County Industrial Facilities and Pollution ================= Control Financing Authority, Pollution Control Revenue Bonds (Carolina Power &Light Company Project), Series 1987, Variable Rate Demand Bonds, 3.900%, 3/01/17+ (Alternative Minimum Tax) P-1 200,000 - ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 1.6% 3,872,868 - ------------------------------------------------------------------------------------------------------------------ Net Assets - 100% $248,091,670 ================================================================================================================== NUMBER OF MARKET MARKET STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 26 $ 96,250,416 39% RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 9 26,154,291 11 PORTFOLIO OF A+ A1 8 35,912,897 15 INVESTMENTS A, A- A, A2, A3 9 37,357,281 15 (EXCLUDING BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 9 40,654,342 17 TEMPORARY Non-rated Non-rated 1 7,689,575 3 INVESTMENTS): - -------------------------------------------------------------------------------------------------------------- TOTAL 62 $244,018,802 100% ============================================================================================================== * Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. ** Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. N/R - Investment is not rated. + The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. 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.
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2 (NXQ) PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE CALIFORNIA - 4.7% $ 3,250,000 California State Public Works Board, Lease Revenue Bonds (California Community Colleges), 1994 Series B, 7.000%, 3/01/14 (Pre-refunded to 3/01/04) Aaa 3/04 at 102 $ 3,718,423 2,000,000 State Public Works Board of the State of California, Lease Revenue Refunding Bonds (The Regents of the University of California), 1993 Series A (Various University of California Projects), 5.500%, 6/01/14 A1 No Opt. Call 1,945,720 5,000,000 State Public Works Board of the State of California Lease Revenue Bonds (Department of Corrections), 1994 Series A (California State of Prison-Monterey County (Soledad II)), 6.875%, 11/01/14 (Pre-refunded to 11/01/04) Aaa 11/04 at 102 5,732,850 1,000,000 City of Fresno, California, Health Facility Revenue Refunding Bonds, Series 1993A (Holy Cross Health System Corporation), 5.625%, 12/01/15 Aaa 12/03 at 102 973,450 - ------------------------------------------------------------------------------------------------------------------ COLORADO - 6.4% 4,350,000 Colorado Housing Finance Authority, Single Family Program Senior Bonds, Series 1992A-3, 7.000%, 11/01/24 (Alternative Minimum Tax) AA 5/02 at 102 4,516,518 11,465,000 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992B, 7.250%, 11/15/12 (Alternative Minimum Tax) Baa 11/02 at 102 12,398,022 - ------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 5.0% 7,500,000 District of Columbia (Washington, D.C.), General Obligation Bonds, Series 1992B, 6.300%, 6/01/12 Aaa 6/02 at 102 7,721,925 4,600,000 District of Columbia Hospital Revenue Refunding Bonds (Washington Hospital Center), Series 1992-A, 7.125%, 8/15/19 Baa1 8/02 at 102 4,817,856 500,000 District of Columbia, Hospital Revenue and Refunding Bonds (Medlantic Healthcare Group, Inc.), Series 1996A, 5.750%, 8/15/16 Aaa 8/06 at 102 488,830 - ------------------------------------------------------------------------------------------------------------------ FLORIDA - 3.3% 8,180,000 Hillsborough County (Florida), Environmentally Sensitive Land Acquisition and Protection Program Bonds, Series 1992, 6.375%, 7/01/11 A 7/02 at 102 8,592,354 - ------------------------------------------------------------------------------------------------------------------ ILLINOIS - 11.9% 3,750,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds (Columbia College), Series 1992, 6.875%, 12/01/17 BBB 12/04 at 100 3,866,475 2,500,000 Illinois Educational Facilities Authority, Revenue Bonds, Series 1993 (Columbia College), 6.125%, 12/01/18 BBB 12/03 at 102 2,404,200 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE ILLINOIS (CONTINUED) $ 8,500,000 Chicago Metropolitan Housing Development Corporation (Illinois), Housing Development Revenue Refunding Bonds (FHA-Insured Mortgage Loans-Section 8 Assisted Projects), Series 1992A, 6.800%, 7/01/17 AA 7/02 at 102 $ 8,798,095 8,070,000 The County of Cook, Illinois, General Obligation Bonds, Series 1992A, 6.600%, 11/15/22 Aaa 11/02 at 102 8,663,387 45,000 Metropolitan Pier and Exposition Authority (Illinois), McCormick Place Expansion Project Bonds, Series 1992A, 6.500%, 6/15/22 A+ 6/03 at 102 47,344 2,205,000 Metropolitan Pier and Exposition Authority (Illinois), McCormick Place Expansion Project Bonds, Series 1922A, 6.500%, 6/15/22 (Pre-refunded to 6/15/03) Aaa 6/03 at 102 2,426,139 5,000,000 Regional Transportation Authority (Cook, DuPage, Kane, Lake, McHenry and Will Counties in Illinois), General Obligation Bonds, Series 1993A, 5.800%, 6/01/13 Aaa 6/03 at 102 5,036,700 - ------------------------------------------------------------------------------------------------------------------ INDIANA - 5.9% 10,000,000 Indiana Educational Facilities Authority, Educational Facilities Refunding Revenue Bonds (Butler University Project), Series 1992A, 6.600%, 1/01/18 Aaa 1/02 at 102 10,661,900 2,005,000 Howard County Jail and Juvenile Detention Center Corporation (Indiana), First Mortgage Revenue Bonds, Series 1992, 6.850%, 1/01/12 (Pre-refunded to 1/01/02) A1 1/02 at 102 2,201,911 2,400,000 Westfield-Washington South School Building Corporation (Indiana), First Mortgage Revenue Bonds (Series 1992), 6.500%, 7/15/13 (Pre-refunded to 7/15/02) A 7/02 at 102 2,622,768 - ------------------------------------------------------------------------------------------------------------------ KENTUCKY - 2.6% Kentucky Housing Corporation, Housing Revenue Bonds (Federally Insured or Guaranteed Mortgage Loans), Series 1992A: 4,455,000 6.600%, 7/01/11 Aaa 7/02 at 102 4,641,620 2,205,000 6.700%, 7/01/17 Aaa 7/02 at 102 2,290,466 - ------------------------------------------------------------------------------------------------------------------ LOUISIANA - 4.7% Louisiana Public Facilities Authority, Revenue Bonds, 1992 Series, Tulane University of Louisiana: 2,590,000 6.625%, 11/15/21 (Pre-refunded to 11/15/02) A1 11/02 at 102 2,849,207 8,835,000 6.625%, 11/15/21 A1 11/02 at 102 9,441,876 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE MASSACHUSETTS - 2.7% $ 3,000,000 Massachusetts Health and Educational Facilities Revenue Bonds (Jordan Memorial Hospital Issue), Series 1992C, 6.875%, 10/01/22 A- 10/02 at 102 $ 3,170,580 Massachusetts State General Obligation Refunding Bonds, Series 1991-B: 2,045,000 6.500%, 8/01/11 (Pre-refunded to 8/01/01) A1 8/01 at 102 2,211,443 1,585,000 6.500%, 8/01/11 A1 8/01 at 102 1,704,303 - ------------------------------------------------------------------------------------------------------------------ MICHIGAN - 1.6% 3,565,000 City of Royal Oak (Michigan), Hospital Finance Authority, Revenue Bonds (Beaumount Properties, Inc.), Series 1992E, 6.625%, 1/01/19 Aa 1/02 at 102 3,772,768 435,000 Royal Oak Hospital Finance Authority Revenue Bonds Series 1992-E (Beaumont Properties Inc), 6.625%, 1/01/19 (Pre-refunded to 1/01/02) Aa 1/02 at 102 474,685 - ------------------------------------------------------------------------------------------------------------------ MONTANA - 0.8% 2,065,000 City of Billings, Montana, Tax Increment Urban Renewal Bonds, Refunding Series 1992, 7.100%, 3/01/08 Baa 3/02 at 101 2,210,748 - ------------------------------------------------------------------------------------------------------------------ NEVADA - 0.4% 1,000,000 Clark County, Nevada, General Obligation (Limited Tax) Las Vegas Convention and Visitors Authority Bonds, Series September 1, 1996, 5.500%, 7/01/17 Aaa 7/06 at 101 967,320 - ------------------------------------------------------------------------------------------------------------------ NEW YORK - 10.8% 2,695,000 Dormitory Authority of the State of New York, State University Educational Facilities, Revenue Bonds, Series 1989B, 7.250%, 5/15/15 (Pre-refunded to 5/15/00) Aaa 5/00 at 102 2,951,618 4,000,000 New York State Medical Care Facilities Finance Agency, New York Hospital FHA-Insured Mortgage Revenue Bonds, 1994 Series A (AMBAC Insured Series), 6.750%, 8/15/14 Aaa 2/05 at 102 4,342,400 3,850,000 Metropolitan Transportation Authority (New York), Transit Facilities Service Contract Bonds, Series N, 6.000%, 7/01/11 Baa1 7/02 at 100 3,786,321 The City of New York (New York), General Obligation Bonds, Fiscal 1992 Series H: 8,000,000 7.100%, 2/01/11 Baa1 2/02 at 101 1/2 8,490,080 3,150,000 7.100%, 2/01/12 Baa1 2/02 at 101 1/2 3,342,969 5,000,000 Triborough Bridge and Tunnel Authority, Convention Center Project Bonds, Series E, 7.250%, 1/01/10 Baa1 No Opt. Call 5,600,700 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE OHIO - 2.3% $ 2,800,000 County of Cuyahoga, Ohio, Hospital Revenue Bonds (Meridia Health System), Series 1995, 6.250%, 8/15/14 A1 8/05 at 102 $ 2,856,476 3,000,000 County of Erie, Ohio Hospital Improvement and Refunding Revenue Bonds, Series 1992 (Firelands Community Hospital Project), 6.750%, 1/01/15 A 1/02 at 102 3,128,940 - ------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 2.4% 6,000,000 Water and Sewer System Revenue Bonds, Series 1992A, Oklahoma City Water Utilities Trust, Oklahoma City, Oklahoma, 6.400%, 7/01/17 Aaa 7/02 at 100 6,241,320 - ------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.6% 6,295,000 Pennsylvania Intergovernmental Cooperation Authority, Special Tax Revenue Bonds (City of Philadelphia Funding Program) Series of 1992, 6.800%, 6/15/22 (Pre-refunded to 6/15/02) Aaa 6/02 at 100 6,869,796 - ------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 2.3% 5,500,000 Rhode Island Depositors Economic Corporation, Special Obligation Bonds, 1992 Series A, 6.900%, 8/01/13 (Pre-refunded to 8/01/02) Aaa 8/02 at 102 6,124,140 - ------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 2.8% 7,000,000 Richland County (South Carolina), Solid Waste Disposal Facilities Revenue Bonds (Union Camp Corporation Project), Series 1992-A, 6.750%, 5/01/22 (Alternative Minimum Tax) A1 5/02 at 102 7,360,640 - ------------------------------------------------------------------------------------------------------------------ TENNESSEE - 5.4% 8,895,000 Tennessee Housing Development Agency, Homeownership Program Bonds, Issue WR, Series 1992, 6.800%, 7/01/17 AA 7/02 at 102 9,249,021 4,500,000 Memphis-Shelby County Airport Authority (Tennessee), Special Facilities Revenue Bonds, Series 1984 (Federal Express Corporation), 7.875%, 9/01/09 BBB 9/01 at 103 4,988,025 - ------------------------------------------------------------------------------------------------------------------ TEXAS - 7.9% 3,275,000 Bexar County (Texas), Health Facilities Development Corporation, Hospital Revenue Bonds (Baptist Memorial Hospital System Project), Series 1994, 6.900%, 2/15/14 Aaa 8/04 at 102 3,598,701 4,825,000 Cleveland Housing Corporation (Texas), Mortgage Revenue Refunding Bonds, Series 1992-C (FHA Insured-Section 8), 7.375%, 7/01/24 Aaa 1/01 at 102 5,101,521 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE TEXAS (CONTINUED) $ 2,500,000 Harris County Health Facilities Development Corporation, Texas Children's Hospital Project, Series 1995, 5.500%, 10/01/16 Aaa 10/05 at 102 $ 2,378,100 7,600,000 Port of Corpus Christi Authority of Nueces County (Texas), Pollution Control Revenue Bonds (Hoechst Celanese Corporation), Series 1992, 6.875%, 4/01/17 (Alternative Minimum Tax) A+ 4/02 at 102 8,088,984 1,460,000 Red River Authority (Texas), Pollution Control Revenue Bonds (Hoechst Celanese Corporation), Series 1992, 6.875%, 4/01/17 (Alternative Minimum Tax) A+ 4/02 at 102 1,557,090 - ------------------------------------------------------------------------------------------------------------------ UTAH - 1.3% 1,560,000 Utah Housing Finance Agency, Single Family Mortgage Purchase Refunding Senior Bonds, Series 1992, 6.800%, 1/01/12 Aa 7/02 at 102 1,633,242 1,655,000 Municipal Building Authority of Ogden City School District, Weber County, Utah, Lease Revenue Bonds (Central Middle School Project), Series 1992 6.700%, 1/01/12 Baa1 1/02 at 101 1,715,043 - ------------------------------------------------------------------------------------------------------------------ VERMONT - 1.4% 3,600,000 Vermont Industrial Development Authority, Industrial Development Refunding Revenue Bonds (Stanley Works Project), Series 1992, 6.750%, 9/01/10 A 9/02 at 102 3,784,752 - ------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.8% 2,000,000 Industrial Development 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) A- 4/02 at 102 2,181,840 - ------------------------------------------------------------------------------------------------------------------ WASHINGTON - 3.9% Washington Public Power Supply System, Nuclear Project No. 3, Refunding Revenue Bonds, Series 1991A: 3,600,000 6.750%, 7/01/11 Aa1 7/01 at 102 3,851,460 6,160,000 6.500%, 7/01/18 Aa1 7/01 at 102 6,394,080 - ------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 0.7% 1,750,000 West Virginia School Building Authority Capital Improvement Revenue Series 1992-A, 6.625%, 7/01/22 (Pre-refunded to 7/01/02) A 7/02 at 102 1,916,932 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE WISCONSIN - 4.0% $ 10,000,000 Wisconsin Housing and Economic Development Authority, Multi-Family Housing Revenue Bonds, 1992 Series D, 7.200%, 11/01/13 (Alternative Minimum Tax) A1 4/02 at 102 $ 10,508,900 - ------------------------------------------------------------------------------------------------------------------ $244,770,000 Total Investments - (cost $242,267,478) - 98.6% 259,412,974 =================------------------------------------------------------------------------------------------------- TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.2% $ 400,000 New York State, Job Development Authority, ================= Series B, Variable Rate Demand Bonds, 4.000%, 3/01/05+ A1 400,000 - ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 1.2% 3,363,385 - ------------------------------------------------------------------------------------------------------------------ Net Assets - 100% $263,176,359 ================================================================================================================== NUMBER OF MARKET MARKET STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 20 $ 90,930,606 35% RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 8 38,689,869 15 PORTFOLIO OF A+ A1 12 50,773,894 19 INVESTMENTS A, A- A, A2, A3 7 25,398,166 10 (EXCLUDING BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 11 53,620,439 21 TEMPORARY INVESTMENTS): - ----------------------------------------------------------------------------------------------------------------- TOTAL 58 $259,412,974 100% ================================================================================================================= * Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. ** Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. + The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. 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.
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3 (NXR) PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE CALIFORNIA - 3.0% $ 3,000,000 State Public Works Board of the State of California Lease Revenue Bonds (Department of Corrections), 1994 Series A (California State of Prison-Monterey County (Soledad II), 6.875%, 11/01/14 (Pre-refunded to 11/01/04) Aaa 11/04 at 102 $ 3,439,710 500,000 City of Fresno, California, Health Facility Revenue Refunding Bonds (Holy Cross Health System Corporation), 5.625%, 12/01/18 Aaa 12/03 at 102 475,930 1,570,000 City of Torrance (California), Hospital Revenue Bonds (Little Company of Mary Hospital Project), Series 1992, 6.875%, 7/01/15 A 7/02 at 102 1,661,421 - ------------------------------------------------------------------------------------------------------------------ COLORADO - 6.9% 2,500,000 City of Colorado Springs, Colorado, Utilities System Refunding Revenue Bonds, Series 1992A, 6.125%, 11/15/20 Aa 11/02 at 100 2,529,350 1,500,000 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax) Baa No Opt. Call 1,772,700 4,000,000 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992B, 7.250%, 11/15/23 (Alternative Minimum Tax) Baa 11/02 at 102 4,283,720 4,000,000 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992C, 6.750%, 11/15/13 (Alternative Minimum Tax) Baa 11/02 at 102 4,172,320 - ------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.1% 250,000 Connecticut Health and Educational Facilities Authority Revenue Bonds, Series 1992-A, Bridgeport Hospital Issue, 6.625%, 7/01/18 Aaa 7/02 at 102 266,585 - ------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 3.4% 4,245,000 District of Columbia (Washington, D.C.), General Obligation Bonds, Series 1993 E, 6.000%, 6/01/13 Aaa 6/03 at 102 4,285,455 2,000,000 District of Columbia Hospital Revenue Refunding Bonds (Washington Hospital Center), Series 1992-A, 7.125%, 8/15/19 Baa1 8/02 at 102 2,094,720 - ------------------------------------------------------------------------------------------------------------------ FLORIDA - 2.5% 4,000,000 City of Tampa, Florida, Revenue Bonds (The Florida Aquarium Project), Series 1992, 7.550%, 5/01/12 (Pre-refunded to 5/01/02) N/R 5/02 at 102 4,549,600 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE GEORGIA - 2.3% Fulco Hospital Authority, Refunding Revenue Anticipation Certificates (Georgia Baptist Health Care System Project), Series 1992B: $ 2,250,000 6.250%, 9/01/13 Baa1 9/02 at 102 $ 2,261,497 2,000,000 6.375%, 9/01/22 Baa1 9/02 at 102 2,019,000 - ------------------------------------------------------------------------------------------------------------------ ILLINOIS - 14.2% 1,500,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992C (Evangelical Hospitals Corporation), 6.250%, 4/15/22 AA- No Opt. Call 1,637,670 4,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992B (Franciscan Sisters Health Care Corporation Project), 6.625%, 9/01/13 Aaa 9/02 at 102 4,292,080 1,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992 (Mercy Center for Health Care Services), 6.650%, 10/01/22 Baa1 10/02 at 102 1,022,160 7,750,000 The Illinois State Toll Highway Authority, Toll Highway Priority Revenue Bonds, 1992 Series A, 6.375%, 1/01/15 A1 1/03 at 102 8,041,245 3,000,000 Village of Bryant, Illinois, Pollution Control Revenue Refunding Bonds (Central Illinois Light Company Project), Series 1992, 6.500%, 2/01/18 Aa2 2/02 at 102 3,121,410 2,500,000 Chicago Metropolitan Housing Development Corporation (Illinois), Housing Development Revenue Refunding Bonds (FHA-Insured Mortgage Loans-Section 8 Assisted Projects), Series 1992A, 6.850%, 7/01/22 AA 7/02 at 102 2,594,900 2,550,000 City of Chicago, Illinois, Mortgage Revenue Bonds, Series 1992 (FHA Insured Mortgage Loan-Lakeview Towers Project), 6.600%, 12/01/20 AAA 12/02 at 102 2,625,837 1,700,000 City of Chicago, Chicago-O'Hare International Airport General Airport Second Lien Revenue Refunding Bonds, 5.600%, 1/01/18 (Alternative Minimum Tax) Aaa 1/03 at 102 1,586,338 1,360,000 Board of Regents of Sangamon State University (Illinois), Auxiliary Facilities System, Revenue Bonds, Series 1992, 6.375%, 10/01/17 (Pre-refunded to 10/01/02) Aaa 10/02 at 102 1,483,080 - ------------------------------------------------------------------------------------------------------------------ INDIANA - 5.5% 4,000,000 Indiana State Office Building Commission Correctional Facilities Program, Revenue Bonds, Series 1991, 6.375%, 7/01/16 A1 12/01 at 102 4,151,000 1,205,000 Allen County, Indiana, Refunding Certificates of Participation, Series 1991, 6.500%, 11/01/17 Aa 5/02 at 101 1,275,938 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE INDIANA (CONTINUED) $ 2,000,000 School Building Corporation of Warren Township (Marion County, Indiana), First Mortgage Bonds, Series 1992A, 6.000%, 7/15/12 A 7/02 at 102 $ 2,038,160 2,725,000 Warrick County, Indiana, Adjustable Rate Environmental Improvement Revenue Bonds, 1993 Series B (Southern Indiana Gas and Electric Company Project), 6.000%, 5/01/23 (Alternative Minimum Tax) AA 5/03 at 102 2,742,495 - ------------------------------------------------------------------------------------------------------------------ KENTUCKY - 2.6% 500,000 County of Trimble, Kentucky, Pollution Control Revenue Bonds, 1990 Series B (Louisville Gas and Electric Company Project), 6.550%, 11/01/20 (Alternative Minimum Tax) (Pre-refunded to 9/16/02) AA 9/02 at 102 546,330 4,080,000 Trimble County, Kentucky, Pollution Control Revenue Bonds (Louisville Gas and Electric Company Project), Series 1990-B, 6.550%, 11/01/20 (Alternative Minimum Tax) AA 9/02 at 102 4,285,918 - ------------------------------------------------------------------------------------------------------------------ LOUISIANA - 2.3% 4,000,000 Louisiana Public Facilities Authority, Revenue Bonds, Series 1992, Baton Rouge Water Works Company Project, 6.400%, 2/01/10 (Alternative Minimum Tax) AA- 2/03 at 101 4,217,520 - ------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 0.7% 1,270,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, MetroWest Health, Inc. Issue, Series C, 6.500%, 11/15/18 (Pre-refunded to 11/15/02) Aaa 11/02 at 102 1,394,320 - ------------------------------------------------------------------------------------------------------------------ MICHIGAN - 6.7% 4,000,000 Michigan Housing Development Authority, Single Family Mortgage Revenue, Series 1996-C, 5.950%, 12/01/17 AA+ 6/06 at 102 3,980,800 8,240,000 Michigan Housing Development Authority, Limited Obligation Revenue Bonds (Greenwood Villa Project), Series 1992, 6.625%, 9/15/17 Aaa 9/02 at 103 8,566,304 - ------------------------------------------------------------------------------------------------------------------ NEVADA - 1.6% Clark County, Nevada, Las Vegas-McCarran International Airport, Passenger Facility Charge Revenue Bonds, Series 1992B: 1,955,000 6.500%, 7/01/12 (Alternative Minimum Tax) A 7/02 at 102 1,986,886 1,000,000 6.250%, 7/01/22 (Alternative Minimum Tax) A 7/02 at 102 983,060 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE NEW YORK - 10.3% $ 2,130,000 Dormitory Authority of the State of New York, City University System Consolidated, Second General Resolution Revenue Bonds, Series 1990C, 7.500%, 7/01/10 Baa1 No Opt. Call $ 2,428,370 2,000,000 New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home FHA-Insured Mortgage Revenue Bonds, 1992 Series C (Mount Sinai Hospital), 6.250%, 8/15/12 AAA 8/02 at 102 2,053,800 2,000,000 The City of New York (New York), General Obligation Bonds, Fiscal 1992 Series H, 7.100%, 2/01/11 Baa1 2/02 at 101 1/2 2,122,520 1,000,000 The New York City (New York), General Obligation Bonds, Fiscal 1991 Series B, 7.000%, 6/01/12 Baa1 6/01 at 101 1/2 1,055,760 1,060,000 The City of New York, New York, General Obligation Bonds, Fiscal 1992 Series B, 7.000%, 2/01/18 Baa1 2/02 at 101 1/2 1,120,537 New York City, General Obligation Bonds, Fiscal 1992 Series C-1: 60,000 7.000%, 8/01/17 (Pre-refunded to 8/01/02) Baa1 8/02 at 101 1/2 67,035 1,690,000 7.000%, 8/01/17 Baa1 8/02 at 101 1/2 1,792,820 New York City, General Obligation Bonds, Fiscal 1993 Series D: 180,000 7.500%, 2/01/18 (Pre-refunded to 2/01/02) Baa1 2/02 at 101 1/2 203,330 1,320,000 7.500%, 2/01/18 Baa1 2/02 at 101 1/2 1,450,231 4,000,000 New York City Municipal Water Finance Authority, Water and Sewer Revenue Bonds, Fiscal 1993 Series A, 6.000%, 6/15/17 A2 6/02 at 101 1/2 4,014,640 2,785,000 New York City Municipal Water Finance Authority (New York), Water and Sewer System Revenue Bonds, Fixed Rate Fiscal 1993 Series BBonds, 6.375%, 6/15/22 A2 6/02 at 101 2,897,430 - ------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 6.2% 2,000,000 Pennsylvania Higher Educational Facilities Authority, Revenue Bonds (Drexel University), Series 1993, 6.375%, 5/01/17 BBB+ 5/03 at 102 2,042,860 4,000,000 Pennsylvania Housing Finance Agency, Rental Housing Refunding Bonds, Issue of 1992 (FNMA Insured Mortgage Loans), 6.500%, 7/01/23 Aaa 7/02 at 102 4,111,000 2,500,000 Cambria County Hospital Development Authority (Pennsylvania), Hospital Revenue Refunding and Improvement Bonds, Series B of 1992 (Conemaugh Valley Memorial Hospital Project), 6.375%, 7/01/18 AAA 7/02 at 102 2,581,575 2,435,000 Dauphin County, Pennsylvania, Industrial Development Authority, Water Development Refunding Revenue Bonds, Series 1992B (Dauphin Consolidated Water Supply Company), 6.700%, 6/01/17 A No Opt. Call 2,737,622 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE SOUTH CAROLINA - 3.1% $ 4,000,000 South Carolina Public Service Authority Revenue Bonds, 1992 Refunding Series A, 6.375%, 7/01/11 Aa 7/02 at 102 $ 4,210,200 1,600,000 City of Spartanburg, South Carolina, Water System Improvement Refunding Revenue Bonds, Series 1992, 6.250%, 6/01/17 AA- 6/02 at 101 1,644,880 - ------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 2.2% 4,000,000 South Dakota Health and Educational Facilities Authority, Revenue Bonds, Series 1992 (Rapid City Regional Hospital Issue), 6.150%, 9/01/18 Aaa 9/02 at 102 4,026,920 - ------------------------------------------------------------------------------------------------------------------ TENNESSEE - 2.5% 4,420,000 Memphis-Shelby County Airport Authority (Tennessee), Special Facilities Revenue Refunding Bonds, Series 1992 (Federal Express Corporation), 6.750%, 9/01/12 BBB 9/02 at 102 4,684,935 - ------------------------------------------------------------------------------------------------------------------ TEXAS - 6.0% 3,755,000 Grand Prairie Industrial Development Authority, Industrial Development Revenue Refunding Bonds, Series 1992 (Baxter International Inc. Project), 6.550%, 12/01/12 A 12/02 at 102 3,898,704 2,500,000 Harris County Health Facilities (Texas), Development Corporation Hospital Revenue Bonds (Hermann Hospital), Series 1994, 6.375%, 10/01/17 Aaa 10/04 at 101 2,620,575 5,000,000 North Central Texas Health Facilities Development Corporation, Hospital Revenue Refunding Bonds, 1995 (Baylor Health Care System), 5.250%, 5/15/16 AA 5/06 at 102 4,676,200 - ------------------------------------------------------------------------------------------------------------------ VIRGINIA - 2.2% 4,000,000 Virginia Housing Development Authority, Commonwealth Mortgage Bonds, 1992 Series A, 7.100%, 1/01/22 Aa1 1/02 at 102 4,148,760 - ------------------------------------------------------------------------------------------------------------------ WASHINGTON - 9.9% 5,840,000 State of Washington, Certificates of Participation, Series 1991-A, State Office Building Project, 6.000%, 4/01/12 A1 4/01 at 102 5,769,044 4,000,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding Revenue Bonds, Series 1992A, 6.500%, 7/01/15 Aa1 7/02 at 102 4,159,760 4,000,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding Revenue Bonds, Series 1991A, 6.875%, 7/01/17 (Pre-refunded to 7/01/01) Aaa 7/01 at 102 4,392,840 4,000,000 Port of Seattle, Washington, Revenue Bonds, Series 1992B, 6.000%, 11/01/17 (Alternative Minimum Tax) AA- 11/02 at 100 4,013,840 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE WEST VIRGINIA - 4.4% $ 1,855,000 West Virginia School Building Authority, Capital Improvement Revenue Series 1992-A, 6.500%, 7/01/12 (Pre-refunded to 7/01/02) A 7/02 at 102 $ 2,021,783 395,000 West Virginia School Building Authority, Capital Improvement Revenue Bonds, Series 1992-A, 6.500%, 7/01/12 A 7/02 at 102 420,098 2,500,000 Berkeley County Building Commission (West Virginia), Hospital Revenue Bonds (City Hospital Project), Series 1992, 6.500%, 11/01/09 BBB+ 11/02 at 102 2,611,125 3,000,000 Mason County, West Virginia, Pollution Control Revenue Bonds (Appalachian Power Company Project), Series 1992J, 6.600%, 10/01/22 Baa1 10/02 at 102 3,089,580 - ------------------------------------------------------------------------------------------------------------------ $176,175,000 Total Investments - (cost $175,030,604) - 98.6% 183,454,233 =================------------------------------------------------------------------------------------------------- TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.2% $ 200,000 Orange County Water District, Variable Rate Demand Bonds, 3.650%, 8/15/15+ A-1+ 200,000 200,000 The Wake County Industrial Facilities and Pollution Control Financing Authority, Pollution Control Revenue Bonds (Carolina Power and Light Company Project), Series 1987, Variable Rate Demand Bonds, 3.900%, 3/01/17+ (Alternative Minimum Tax) P-1 200,000 - ------------------------------------------------------------------------------------------------------------------ $ 400,000 Total Temporary Investment - 0.2% 400,000 =================------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.2% 2,210,363 - ------------------------------------------------------------------------------------------------------------------ Net Assets - 100% $186,064,596 ================================================================================================================== NUMBER OF MARKET MARKET STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 16 $ 48,202,349 26% RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, A3 16 49,785,971 27 PORTFOLIO OF A+ A1 3 17,961,289 10 INVESTMENTS A, A- A, A2, A3 10 22,659,804 12 (EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 19 40,295,220 22 TEMPORARY Non-rated Non-rated 1 4,549,600 3 INVESTMENTS): - ------------------------------------------------------------------------------------------------------------------ TOTAL 65 $183,454,233 100% ================================================================================================================== * Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. ** Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. N/R - Investment is not rated. + The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. 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.
NUVEEN INSURED CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO (NXC) PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 2,050,000 California Educational Facilities Authority, Refunding Revenue Bonds, Series 1992 (Loyola Marymount University), 6.000%, 10/01/14 Aaa 10/01 at 100 $ 2,079,377 1,000,000 California Health Facilities Financing Authority, Insured Hospital Revenue Bonds (Adventist Health System/West), 1991 Series B, 6.500%, 3/01/11 Aaa 3/01 at 102 1,059,820 2,500,000 California Health Facilities Financing Authority, Insured Hospital Revenue Bonds (Scripps Memorial Hospitals), Series 1992A, 6.400%, 10/01/12 Aaa 10/02 at 102 2,647,000 4,000,000 California Health Facilities Financing Authority, Insured Hospital Revenue Bonds (San Diego Hospital Association), Series 1992B, 6.125%, 8/01/11 Aaa 8/02 at 102 4,139,080 500,000 California Statewide Communities Development Authority, Certificates of Participation (Sutter Health Obligated Group), Series 1993, 5.500%, 8/15/23 Aaa 8/03 at 102 468,625 3,500,000 State Public Works Board of the State of California, Lease Revenue Bonds (Department of Corrections), 1991 Series A (State Prisons-Imperial County), 6.500%, 9/01/17 Aaa No Opt. Call 3,868,795 2,320,000 Brea Public Financing Authority (Orange County, California), 1991 Lease Revenue Bonds, Series A, 6.250%, 7/01/21 Aaa 7/00 at 102 2,384,890 4,000,000 Eastern Municipal Water District (Riverside County, California), Water and Sewer Revenue Refunding Certificates of Participation, Series 1991A, 6.300%, 7/01/20 Aaa 7/01 at 101 4,136,560 1,250,000 Fairfield-Suisun Sewer District (Solano County California), Sewer Revenue Refunding Bonds, Series 1991A, 6.250%, 5/01/16 Aaa 5/01 at 102 1,296,213 4,000,000 The Community Redevelopment Agency of the City of Los Angeles, California, Hollywood Redevelopment Project, Tax Allocation Bonds, Series B, 6.100%, 7/01/22 Aaa 7/02 at 102 4,040,320 4,000,000 City of Los Angeles, California, Wastewater System Revenue Bonds, Series 1992-B, 6.250%, 6/01/12 Aaa 6/02 at 102 4,157,360 2,430,000 County of Los Angeles, Certificates of Participation (Edmund D. Edelman Children's Court and Petersen Museum Projects), 6.000%, 4/01/12 Aaa 4/02 at 102 2,490,604 1,500,000 Los Angeles County Metropolitan Transportation Authority (California), Proposition A, Sales Tax Revenue Refunding Bonds, Series 1993-A, 5.625%, 7/01/18 Aaa 7/03 at 102 1,444,110 3,450,000 M-S-R Public Power Agency (California), San Juan Project Revenue Bonds, Series 1991E, 6.000%, 7/01/22 Aaa 7/01 at 100 3,459,212 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 2,430,000 Modesto Irrigation District, California, Certificates of Participation (Refunding and Capital Improvements Project), Series 1991A, 6.000%, 10/01/21 Aaa 10/01 at 100 $ 2,437,096 1,500,000 Modesto Irrigation District Financing Authority, Domestic Water Project Revenue Bonds, Series 1992A, 6.125%, 9/01/19 Aaa 9/02 at 102 1,517,700 3,000,000 Northern California Power Agency, Hydroelectric Project Number One, Revenue Bonds, 1992 Refunding Series A, 6.250%, 7/01/12 Aaa 7/02 at 102 3,120,900 4,000,000 City of Oakland, Alameda County, California, General Obligation Bonds, Series 1992, 6.000%, 6/15/17 Aaa 6/02 at 102 4,030,960 3,675,000 Palm Springs Financing Authority, Palm Springs Regional Airport, Revenue Bonds, Series 1992, 6.000%, 1/01/12 (Alternative Minimum Tax) Aaa 1/02 at 102 3,741,848 3,750,000 Port of Oakland (California), Revenue Bonds, Series 1992-E, 6.500%, 11/01/16 (Alternative Minimum Tax) Aaa 11/02 at 102 3,950,063 3,310,000 Rio Linda Union School District (California), General Obligation Bonds, Series 1992-A, 6.375%, 8/01/17 (Pre-refunded to 8/01/02) Aaa 8/02 at 102 3,630,971 500,000 Rio Linda Union School District, General Obligation Bonds, Series 1992-A, 6.250%, 8/01/15 (Pre-refunded to 8/01/02) Aaa 8/02 at 102 545,565 3,800,000 Sacramento Municipal Utility District (California), Electric Revenue Bonds, 1992 Series B, 6.375%, 8/15/22 Aaa 8/02 at 102 3,993,116 4,000,000 San Bernardino County, California, Certificates of Participation (1992 West Valley Detention Center Refinancing Project), 6.000%, 11/01/18 Aaa 11/02 at 102 4,020,280 4,000,000 County of San Diego (California), Certificates of Participation (1994 Inmate Reception Center and Cooling Plant Financing), 6.750%, 8/01/14 Aaa 8/04 at 102 4,383,560 3,500,000 San Francisco Airports Commission, San Francisco International Airport, Second Series Refunding Revenue Bonds, Issue 1, 6.300%, 5/01/11 Aaa 5/02 at 102 3,684,240 2,150,000 Airports Commission, City and County of San Francisco, California, San Francisco International Airport, Second Series Refunding Revenue Bonds, Issue 3 Bonds, 6.200%, 5/01/20 (Alternative Minimum Tax) Aaa 5/03 at 102 2,180,530 1,000,000 Tulare County, California, Certificates of Participation (1992 Financing Project), Series A, 6.125%, 11/15/12 Aaa 11/02 at 102 1,041,210 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 1,225,000 Turlock Irrigation District (California), Revenue Refunding Bonds, Series 1992-A, 6.250%, 1/01/12 Aaa No Opt. Call $ 1,321,393 4,000,000 Walnut Public Financing Authority (Los Angeles County, California), 1992 Tax Allocation Revenue Bonds (Walnut Improvement Project), 6.500%, 9/01/22 Aaa 9/02 at 102 4,268,840 4,000,000 Walnut Valley Water District (California), Certificates of Participation (Badillo/Grand Transmission Project), Series 1992, 6.125%, 2/01/18 Aaa 2/01 at 102 4,044,480 - ------------------------------------------------------------------------------------------------------------------ $86,340,000 Total Investments - (cost $85,629,211) - 98.6% 89,584,718 =================------------------------------------------------------------------------------------------------- TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.3% $ 300,000 Orange County Water District, Variable Rate ================= Demand Bonds, 3.650%, 8/15/15+ A-1+ 300,000 - ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 1.1% 1,009,634 - ------------------------------------------------------------------------------------------------------------------ Net Assets - 100% $90,894,352 ================================================================================================================== NUMBER OF MARKET MARKET STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 31 $89,584,718 100% RATINGS* PORTFOLIO OF INVESTMENTS (EXCLUDING TEMPORARY INVESTMENTS): - ----------------------------------------------------------------------------------------------------------------- TOTAL 31 $89,584,718 100% ================================================================================================================= All of the bonds in the portfolio, excluding temporary investments in short-term municipal securities, are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. * Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. ** Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. + The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. 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.
NUVEEN INSURED NEW YORK SELECT TAX-FREE INCOME PORTFOLIO (NXN) PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 1,560,000 Dormitory Authority of the State of New York, Judicial Facilities Lease Revenue Bonds, (Suffolk County Issue) Series 1986, 7.375%, 7/01/16 Aaa No Opt. Call $ 1,865,308 1,100,000 Dormitory Authority of the State of New York, Mount Sinai School of Medicine, Insured Revenue Bonds, Series 1991, 6.750%, 7/01/15 Aaa 7/01 at 102 1,187,307 2,400,000 Dormitory Authority of the State of New York, Hamilton College, Insured Revenue Bonds, Series 1991, 6.500%, 7/01/21 Aaa 7/01 at 102 2,482,320 570,000 Dormitory Authority of the State of New York, City University System Consolidated, Second General Resolution Revenue Bonds, Series 1990C, 7.500%, 7/01/10 Aaa No Opt. Call 678,283 2,050,000 Dormitory Authority of the State of New York Ithaca College Insured Revenue Bonds, Series 1991, 6.500%, 7/01/10 Aaa 7/01 at 102 2,191,717 1,370,000 Dormitory Authority of the State of New York, Siena College, Insured Revenue Bonds, Series 1992, 6.000%, 7/01/11 Aaa 7/02 at 102 1,404,606 2,250,000 Dormitory Authority of the State of New York, New York University Insured Revenue Bonds, Series 1991, 6.250%, 7/01/09 Aaa 7/01 at 102 2,365,290 2,500,000 Dormitory Authority of the State of New York, Marist College, Insured Revenue Bonds, Series 1992, 6.000%, 7/01/12 Aaa 7/02 at 102 2,568,400 200,000 New York State Thruway Authority Highway and Bridge Trust Fund Bonds Series 1995B, 5.125%, 4/01/15 Aaa 4/05 at 102 185,822 1,245,000 New York State Housing Finance Agency, Insured Multi-Family Housing Mortgage Revenue Bonds, Series 1992C (FHA-Insured), 6.450%, 8/15/14 Aaa 8/02 at 102 1,291,364 2,105,000 New York State Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement Revenue Bonds, 1992 Series B, 6.250%, 8/15/18 Aaa 2/02 at 102 2,162,088 250,000 New York State Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement Revenue Bonds, 1992 Series D, 6.100%, 8/15/13 Aaa 8/02 at 102 256,233 2,500,000 New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home FHA- Insured Mortgage Revenue Bonds, 1992 Series C (Mount Sinai Hospital), 6.250%, 8/15/12 Aaa 8/02 at 102 2,585,425 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 2,500,000 New York State Medical Care Facilities Finance Agency, New York Hospital FHA- Insured Mortgage Revenue Bonds, 1994 Series A (AMBAC Insured Series), 6.750%, 8/15/14 Aaa 2/05 at 102 $ 2,714,000 1,945,000 New York State Power Authority, General Purpose Bonds, Series 1992 AA, 6.250%, 1/01/23 Aaa 1/02 at 102 2,002,397 1,500,000 New York State Thruway Authority, General Revenue Bonds, Series 1992A, 5.500%, 1/01/23 Aaa 1/02 at 100 1,410,525 2,000,000 New York State Thruway Authority, Local Highway and Bridge Service Contract Bonds, Series 1992, 6.000%, 4/01/10 Aaa 4/02 at 102 2,053,080 Town of Clarkstown Rickland County, New York, Various Purposes Serial Bonds-1992: 505,000 5.600%, 6/15/10 Aaa No Opt. Call 515,120 525,000 5.600%, 6/15/11 Aaa No Opt. Call 532,408 525,000 5.600%, 6/15/12 Aaa No Opt. Call 530,045 3,500,000 Metropolitan Transportation Authority, Commuter Facilities Revenue Bonds, Series 1992B, 6.250%, 7/01/17 Aaa 7/02 at 102 3,617,880 2,250,000 Metropolitan Transportation Authority, Transit Facilities Revenue Bonds, Series J, 6.375%, 7/01/10 Aaa 7/02 at 102 2,388,938 1,430,000 New Hartford Housing Development Corporation, Mortgage Revenue Refunding Bonds, Series 1992-A (Village Point Project-FHA-Insured Mortgage Loan- Section 8 Assisted Project), 7.375%, 1/01/24 Aaa 7/02 at 100 1,509,351 255,000 The City of New York (New York), General Obligation Bonds, Fiscal 1992 Series C, 6.250%, 8/01/11 Aaa 8/02 at 101 1/2 265,687 2,000,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series B, 6.950%, 8/15/12 Aaa 8/04 at 101 2,203,020 1,250,000 New York City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, Fiscal 1992 Series A, 6.250%, 6/15/21 Aaa 6/01 at 100 1,284,413 1,000,000 New York City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, Series 1992C, 6.200%, 6/15/21 Aaa 6/02 at 101 1/2 1,030,650 4,900,000 New York City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, Fiscal 1993 Series A, 5.750%, 6/15/18 Aaa 6/02 at 101 1/2 4,808,320 1,000,000 New York City Industrial Development Agency, Civic Facility Revenue Bonds, (USTA National Tennis Center Incorporated Project), 6.375%, 11/15/14 Aaa 11/04 at 102 1,055,830 PRINCIPAL OPT. CALL MARKET AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE $ 2,500,000 Port of Authority of New York and New Jersey, Consolidated Revenue Bonds, Ninety-Seventh Series, 6.500%, 7/15/19 (Alternative Minimum Tax) Aaa 1/05 at 101 $ 2,642,674 485,000 Suffolk County Water Authority (New York), Waterworks Revenue Bonds, Series 1986-V, 6.750%, 6/01/12 AAA No Opt. Call 514,861 2,250,000 Triborough Bridge and Tunnel Authority, Special Obligation Refunding Bonds, Series 1991A, 6.625%, 1/01/17 Aaa 1/01 at 102 2,403,202 - ------------------------------------------------------------------------------------------------------------------ $52,420,000 Total Investments - (cost $52,318,267) - 98.1% 54,706,564 =================------------------------------------------------------------------------------------------------- TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.9% $ 500,000 Babylon Industrial Development Agency (OFS ================= Equity Project), Variable Rate Demand Bonds, 3.800%, 12/01/24+ (Alternative Minimum Tax) A-1+ 500,000 - ------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 1.0% 575,195 - ------------------------------------------------------------------------------------------------------------------ Net Assets - 100% $55,781,759 ================================================================================================================== NUMBER OF MARKET MARKET STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT SUMMARY OF AAA Aaa 32 $54,706,564 100% RATINGS* PORTFOLIO OF INVESTMENTS (EXCLUDING TEMPORARY INVESTMENTS): - ------------------------------------------------------------------------------------------------------------------- TOTAL 32 $54,706,564 100% =================================================================================================================== All of the bonds in the portfolio, excluding temporary investments in short-term municipal securities, are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. * Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. ** Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. + The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. 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.
STATEMENT OF NET ASSETS NXP NXQ NXR NXC ASSETS Investments in municipal securities, at market value (note 1) $244,018,802 $259,412,974 $183,454,233 $ 89,584,718 Temporary investments in short-term municipal securities, at amortized cost (note 1) 200,000 400,000 400,000 300,000 Cash 32,515 97,811 95,447 33,046 Receivables: Interest 5,185,483 4,731,879 3,128,596 1,456,109 Investments sold 75,000 -- -- -- Other assets 19,612 19,624 19,371 12,983 ------------ ------------ ------------ ------------ Total assets 249,531,412 264,662,288 187,097,647 91,386,856 ------------ ------------ ------------ ------------ LIABILITIES Accrued expenses: Surveillance and administration fees (note 6) 51,700 65,837 47,056 23,400 Other 135,118 117,169 91,471 49,880 Dividends payable 1,252,924 1,302,923 894,524 419,224 ------------ ------------ ------------ ------------ Total liabilities 1,439,742 1,485,929 1,033,051 492,504 ------------ ------------ ------------ ------------ Net assets (note 7) $248,091,670 $263,176,359 $186,064,596 $ 90,894,352 ============ ============ ============ ============ Shares outstanding 16,378,097 17,607,068 12,964,123 6,257,068 ============ ============ ============ ============ Net asset value per share outstanding (net assets divided by shares outstanding) $ 15.15 $ 14.95 $ 14.35 $ 14.53 ============ ============ ============ ============ See accompanying notes to financial statements. NXN ASSETS Investments in municipal securities, at market value (note 1) $54,706,564 Temporary investments in short-term municipal securities, at amortized cost (note 1) 500,000 Cash 66,311 Receivables: Interest 805,225 Investments sold -- Other assets 12,873 ----------- Total assets 56,090,973 ----------- LIABILITIES Accrued expenses: Surveillance and administration fees (note 6) 14,363 Other 40,892 Dividends payable 253,959 ----------- Total liabilities 309,214 ----------- Net assets (note 7) $55,781,759 =========== Shares outstanding 3,907,068 =========== Net asset value per share outstanding (net assets divided by shares outstanding) $ 14.28 =========== See accompanying notes to financial statements.
STATEMENT OF OPERATIONS Year ended March 31, 1997 NXP NXQ NXR NXC INVESTMENT INCOME Tax-exempt interest income (note 1) $ 15,742,252 $ 16,548,667 $ 11,445,681 $ 5,395,365 ------------ ------------ ------------ ------------ Expenses: Surveillance and administration fees (note 6) 603,972 770,955 548,430 273,269 Shareholders' servicing agent fees and expenses 56,722 52,886 41,296 14,483 Custodian's fees and expenses 53,093 54,568 47,011 37,354 Trustees' fees and expenses (note 6) 35,314 37,483 26,620 13,535 Professional fees 19,786 18,839 17,443 15,669 Shareholders' reports--printing and mailing expenses 129,125 111,708 83,716 29,422 Stock exchange listing fees 24,260 24,260 24,260 16,170 Investor relations expense 18,522 18,097 13,208 5,683 Other expenses 13,554 14,316 10,468 5,893 ------------ ------------ ------------ ------------ Total expenses 954,348 1,103,112 812,452 411,478 ------------ ------------ ------------ ------------ Net investment income 14,787,904 15,445,555 10,633,229 4,983,887 ------------ ------------ ------------ ------------ REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investment transactions (notes 1 and 3) (38,357) (70,141) (678,107) -- Net change in unrealized appreciation or depreciation of investments 1,518,759 752,365 2,418,261 718,256 ------------ ------------ ------------ ------------ Net gain from investments 1,480,402 682,224 1,740,154 718,256 ------------ ------------ ------------ ------------ Net increase in net assets from operations $ 16,268,306 $ 16,127,779 $ 12,373,383 $ 5,702,143 ============ ============ ============ ============ See accompanying notes to financial statements. NXN INVESTMENT INCOME Tax-exempt interest income (note 1) $ 3,326,348 ----------- Expenses: Surveillance and administration fees (note 6) 168,103 Shareholders' servicing agent fees and expenses 9,851 Custodian's fees and expenses 33,969 Trustees' fees and expenses (note 6) 8,677 Professional fees 15,021 Shareholders' reports--printing and mailing expenses 26,293 Stock exchange listing fees 16,170 Investor relations expense 3,651 Other expenses 4,196 ----------- Total expenses 285,931 ----------- Net investment income 3,040,417 ----------- REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investment transactions (notes 1 and 3) (918) Net change in unrealized appreciation or depreciation of investments 107,862 ----------- Net gain from investments 106,944 ----------- Net increase in net assets from operations $ 3,147,361 =========== See accompanying notes to financial statements.
STATEMENT OF CHANGES IN NET ASSETS NXP NXQ Year ended Year ended Year ended Year ended 3/31/97 3/31/96 3/31/97 3/31/96 OPERATIONS Net investment income $ 14,787,904 $ 14,878,045 $ 15,445,555 $ 15,485,267 Net realized gain (loss) from investment transactions (notes 1 and 3) (38,357) (63,223) (70,141) 7,830 Net change in unrealized appreciation or depreciation of investments 1,518,759 6,475,822 752,365 6,699,901 ------------- ------------- ------------- ------------- Net increase in net assets from operations 16,268,306 21,290,644 16,127,779 22,192,998 ------------- ------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS FROM UNDISTRIBUTED NET INVESTMENT INCOME (note 1) (15,035,095) (15,321,715) (15,719,586) (15,973,130) ------------- ------------- ------------- ------------- Net increase in net assets 1,233,211 5,968,929 408,193 6,219,868 Net assets at beginning of year 246,858,459 240,889,530 262,768,166 256,548,298 ------------- ------------- ------------- ------------- Net assets at end of year $ 248,091,670 $ 246,858,459 $ 263,176,359 $ 262,768,166 ============= ============= ============= ============= Balance of undistributed net investment income at end of year $ 71,632 $ 318,823 $ 242,994 $ 517,025 ============= ============= ============= ============= See accompanying notes to financial statements. NXR NXC Year ended Year ended Year ended Year ended 3/31/97 3/31/96 3/31/97 3/31/96 OPERATIONS Net investment income $ 10,633,229 $ 10,708,241 $ 4,983,887 $ 4,999,789 Net realized gain (loss) from investment transactions (notes 1 and 3) (678,107) 21,932 -- 33,972 Net change in unrealized appreciation or depreciation of investments 2,418,261 4,397,745 718,256 1,682,005 ------------- ------------- ------------- ------------- Net increase in net assets from operations 12,373,383 15,127,918 5,702,143 6,715,766 ------------- ------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS FROM UNDISTRIBUTED NET INVESTMENT INCOME (note 1) (10,773,186) (10,889,864) (5,030,683) (5,078,863) ------------- ------------- ------------- ------------- Net increase in net assets 1,600,197 4,238,054 671,460 1,636,903 Net assets at beginning of year 184,464,399 180,226,345 90,222,892 88,585,989 ------------- ------------- ------------- ------------- Net assets at end of year $ 186,064,596 $ 184,464,399 $ 90,894,352 $ 90,222,892 ============= ============= ============= ============= Balance of undistributed net investment income at end of year $ 124,480 $ 264,437 $ 52,113 $ 98,909 ============= ============= ============= ============= See accompanying notes to financial statements. NXN Year ended Year ended 3/31/97 3/31/96 OPERATIONS Net investment income $ 3,040,417 $ 3,058,490 Net realized gain (loss) from investment transactions (notes 1 and 3) (918) 8,928 Net change in unrealized appreciation or depreciation of investments 107,862 806,780 ------------ ------------ Net increase in net assets from operations 3,147,361 3,874,198 ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM UNDISTRIBUTED NET INVESTMENT INCOME (note 1) (3,047,516) (3,047,517) ------------ ------------ Net increase in net assets 99,845 826,681 Net assets at beginning of year 55,681,914 54,855,233 ------------ ------------ Net assets at end of year $ 55,781,759 $ 55,681,914 ============ ============ Balance of undistributed net investment income at end of year $ 82,643 $ 89,742 ============ ============ See accompanying notes to financial statements.
NOTES TO FINANCIAL STATEMENTS 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES At March 31, 1997, the Trusts covered in this report and their corresponding New York Stock Exchange symbols are Nuveen Select Tax-Free Income Portfolio (NXP), Nuveen Select Tax-Free Income Portfolio 2 (NXQ), Nuveen Select Tax-Free Income Portfolio 3 (NXR), Nuveen Insured California Select Tax-Free Income Portfolio (NXC) and Nuveen Insured New York Select Tax-Free Income Portfolio (NXN). The Trusts are registered under the Investment Company Act of 1940 as closed-end, diversified management investment companies. Each Trust's portfolio of investments consists of municipal obligations that 1) have an average maturity of approximately 19-20 years; 2) are rated within the four highest investment grades by Standard & Poor's or Moody's; and 3) on average, may not be redeemed at the option of the issuer thereof for approximately seven to eight years from the date of purchase by the Trusts. The Trusts' investment adviser, Nuveen Institutional Advisory Corp. ( the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, administers the investments and maintains ongoing surveillance of such investments to insure that they continue to meet the Trusts' investment objectives and credit quality standards. The Adviser does not intend to adjust the portfolios except 1) to invest interest payments on municipal obligations that are not currently needed to pay dividends or expenses; 2) to reinvest principal payments on municipal obligations resulting from their maturity or early redemption; 3) to sell municipal obligations when the Adviser believes that continuing to hold them would be inconsistent with maintaining the Trusts' high credit quality, and to reinvest the proceeds of such sales; and 4) for certain other purposes. The Trusts intend to liquidate all of their assets in approximately 19-20 years but not later than the year 2017, unless extended, making a single liquidating distribution to shareholders at that time. Any extension of these dates may be made only by an amendment to each Trust's declaration of Trust approved by the Board of Trustees and by the shareholders. The following is a summary of significant accounting policies followed by the Trusts in the preparation of their financial statements in accordance with generally accepted accounting principles. Securities Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved and supervised by the Fund's Board of Trustees. When price quotes are not readily available (which is usually the case for municipal securities), the pricing service establishes fair market value based on yields or prices of municipal bonds of comparable quality, type of issue, coupon, maturity and rating, indications of value from securities dealers and general market conditions. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are traded and valued at amortized cost. 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 basis may be settled a month or more after the transaction date. The securities so purchased are subject to market fluctuation during this period. The Trusts have instructed the custodian to segregate assets in a separate account with a current value at least equal to the amount of their purchase commitments. At March 31, 1997, there were no such purchase commitments in any of the Trusts. Interest Income Interest income is determined on the basis of interest accrued, adjusted for amortization of premiums and accretion of discounts on long-term debt securities when required for federal income tax purposes. Income Taxes The Trusts intend to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders all of their tax-exempt net investment income, in addition to any significant amounts of net realized capital gains and/or market discount realized from investment transactions. In light of the Adviser's intention not to adjust the Trusts' investments except under limited conditions, it is expected that the Trusts will generally realize minimal, if any, amounts of both net realized capital gains and market discount. The Trusts intend to retain such minimal amounts and, therefore, will record a provision for federal income taxes on the amounts retained. To the extent more significant amounts of net capital gains are realized, the Trusts may elect to distribute such amounts to shareholders and no federal income tax provision on these amounts will then be required. Furthermore, each Trust intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal income tax for all Trusts and exempt from California state income taxes for NXC and from New York state income taxes for NXN, to retain such tax-exempt status when distributed to shareholders. All income dividends paid during the fiscal year ended March 31, 1997, have been designated Exempt Interest Dividends which are entirely exempt from federal income taxes. Dividends and Tax-exempt net investment income is declared as a Distribution to dividend monthly and payment is made or reinvestment Shareholders is credited to shareholder accounts after month-end. Net realized capital gains and/or market discount from investment transactions are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryovers. Distributions to shareholders of tax-exempt net investment income, net realized 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 generally accepted accounting principles. Accordingly, temporary over-distributions as a result of these differences may occur and will be classified as either 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. Insurance NXC and NXN invest in municipal securities which are either covered by insurance or are backed by an escrow or trust account containing sufficient U.S. Government or U.S Government agency securities, both of which ensure the timely payment of principal and interest. Each insured municipal security is covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance. Such insurance does not guarantee the market value of the municipal securities or the value of the Trusts' shares. Original Issue Insurance and Secondary Market Insurance remain in effect as long as the municipal securities covered thereby remain outstanding and the insurer remains in business, regardless of whether the Trusts ultimately dispose of such municipal securities. Consequently, the market value of the municipal securities covered by Original Issue Insurance or Secondary Market Insurance may reflect value attributable to the insurance. Portfolio Insurance is effective only while the municipal securities are held by the Trust. Accordingly, neither the prices used in determining the market value of the underlying municipal securities nor the net asset value of the Trusts' shares include value, if any, attributable to the Portfolio Insurance. Each policy of the Portfolio Insurance does, however, give the Trusts the right to obtain permanent insurance with respect to the municipal security covered by the Portfolio Insurance policy at the time of its sale. Derivative Financial The Trusts are not authorized to invest in Instruments transactions in certain derivative financial instruments including futures, forward, swap, and option contracts, and other financial instruments with similar characteristics, and therefore made no such purchases during the fiscal year ended March 31, 1997. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. 2. TRUST SHARES There were no share transactions during the fiscal year ended March 31, 1997, nor during the fiscal year ended March 31, 1996, in any of the Trusts. 3. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in municipal securities and temporary municipal investments during the fiscal year ended March 31, 1997, were as follows:
NXP NXQ NXR NXC PURCHASES Investments in municipal securities $3,126,335 $5,260,275 $9,359,825 $ -- Temporary municipal investments 3,680,000 2,500,000 1,680,000 1,700,000 SALES AND MATURITIES Investments in municipal securities 3,540,455 5,483,770 9,616,148 -- Temporary municipal investments 3,480,000 2,500,000 1,480,000 1,700,000 ========== ========== ========== ========== NXN PURCHASES Investments in municipal securities $ 190,934 Temporary municipal investments 1,600,000 SALES AND MATURITIES Investments in municipal securities 15,000 Temporary municipal investments 1,760,000 ==========
At March 31, 1997, the identified cost of investments owned for federal income tax purposes was the same as the cost for financial reporting purposes for each Trust. At March 31, 1997, the following Trusts had unused capital loss carryovers available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryovers will expire as follows:
NXP NXQ NXR NXC Expiration year: 2001 $ -- $ -- $ 200,114 $298,108 2002 -- -- 15,243 -- 2003 13,520 -- -- -- 2004 116,258 -- 170,137 -- 2005 31,707 46,057 674,505 -- -------- ------- ---------- -------- Total $161,485 $46,057 $1,059,999 $298,108 ======== ======= ========== ======== NXN Expiration year: 2001 $618,333 2002 432 2003 1,954 2004 321,550 2005 1,480 -------- Total $943,749 ========
4. DISTRIBUTIONS TO SHAREHOLDERS On April 1, 1997, the Trusts declared Common share dividend distributions from their tax-exempt net investment income which were paid May 1, 1997, to shareholders of record on April 15, 1997, as follows:
NXP NXQ NXR NXC Dividends per share $.0765 $.0740 $.0690 $.0670 ====== ====== ====== ====== NXN Dividends per share $.0650 ======
5. UNREALIZED APPRECIATION (DEPRECIATION) Gross unrealized appreciation and gross unrealized depreciation of investments at March 31, 1997, were as follows:
NXP NXQ NXR NXC Gross unrealized: appreciation $20,476,650 $17,179,226 $8,532,630 $3,955,507 depreciation (79,026) (33,730) (109,001) -- ----------- ------------ ---------- ---------- Net unrealized appreciation $20,397,624 $17,145,496 $8,423,629 $3,955,507 ============ =========== =========== =========== NXN Gross unrealized: appreciation $2,395,241 depreciation (6,944) ---------- Net unrealized appreciation $2,388,297 ===========
6. SURVEILLANCE AND ADMINISTRATION FEES AND OTHER TRANSACTIONS WITH AFFILIATES Under the Trusts' investment management agreements with the Adviser, each Trust pays an annual surveillance and administration fee, payable monthly, at the rates set forth below, which are based upon the average daily net asset value of each Trust:
AVERAGE DAILY NET ASSET VALUE NXP NXQ, NXR, NXC, NXN For the first $125 million .2500 of 1% .3000 of 1% For the next $125 million .2375 of 1 .2875 of 1 For the next $250 million .2250 of 1 .2750 of 1 For the next $500 million .2125 of 1 .2625 of 1 For the next $1 billion .2000 of 1 .2500 of 1 For net assets over $2 billion .1875 of 1 .2375 of 1
The fee compensates the Adviser for performing ongoing administration, surveillance and portfolio adjustment services. The Trusts pay no compensation directly to those Trustees who are affiliated with the Adviser or to their officers, all of whom receive remuneration for their services to the Trusts from the Adviser. 7. COMPOSITION OF NET ASSETS At March 31, 1997, each Trust had an unlimited number of $.01 par value shares of beneficial interest authorized. Net assets consisted of:
NXP NXQ NXR NXC Capital paid-in $ 163,781 $ 176,071 $ 129,641 $ 62,571 Paid-in surplus 227,626,768 245,681,942 178,450,447 87,122,269 Balance of undistributed net investment income 71,632 242,994 124,480 52,113 Accumulated net realized gain (loss) from investment transactions (168,135) (70,144) (1,063,601) (298,108) Net unrealized appreciation of investments 20,397,624 17,145,496 8,423,629 3,955,507 ------------ ------------ ------------ ----------- Net assets $248,091,670 $263,176,359 $186,064,596 $90,894,352 ============ ============ ============ =========== NXN Capital paid-in $ 39,071 Paid-in surplus 54,215,789 Balance of undistributed net investment income 82,643 Accumulated net realized gain (loss) from investment transactions (944,041) Net unrealized appreciation of investments 2,388,297 ----------- Net assets $55,781,759 ===========
8. INVESTMENT COMPOSITION Each Trust invests in municipal securities which include general obligation, escrowed and revenue bonds. At March 31, 1997, the revenue sources by municipal purpose for these investments, expressed as a percent of total investments, were as follows:
NXP NXQ NXR NXC Revenue Bonds: Educational Facilities 7% 11% 2% 2% Housing Facilities 16 20 15 -- Lease Rental Facilities 5 4 5 20 Transportation 5 5 15 15 Health Care Facilities 10 10 17 9 Water / Sewer Facilities 2 2 5 17 Pollution Control Facilities 8 10 16 -- Electric Utilities 1 4 6 16 Other 3 3 1 11 General Obligation Bonds 10 15 7 5 Escrowed Bonds 33 16 11 5 ----- ----- ----- ----- 100% 100% 100% 100% ===== ===== ===== ===== NXN Revenue Bonds: Educational Facilities 23% Housing Facilities 15 Lease Rental Facilities -- Transportation 18 Health Care Facilities -- Water / Sewer Facilities 13 Pollution Control Facilities -- Electric Utilities 4 Other 7 General Obligation Bonds 16 Escrowed Bonds 4 ----- 100% =====
Certain long-term and intermediate-term investments owned by the Trusts are covered by insurance issued by several private insurers or are backed by an escrow or trust containing U.S. Government or U.S. Government agency securities, either of which ensure the timely payment of principal and interest in the event of default (45% for NXP, 38% for NXQ, 26% for NXR, 100% for NXC and 100% for NXN). Such insurance or escrow, however, does not guarantee the market value of the municipal securities or the value of any of the Trusts' shares. All of the temporary investments in short-term municipal securities have credit enhancements (letters of credit, guarantees or insurance) issued by third party domestic or foreign banks or other institutions. For additional information regarding each investment security, refer to the Portfolio of Investments of each Trust. FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
Operating performance Net Dividends realized & from Distribu- Net unrealized tax-exempt tions asset Net gain (loss) net from value invest- from invest- net beginning ment invest- ment capital of period income ments income gains NXP Year ended 3/31, 1997 $15.070 $.903 $ .095 $(.918) $ -- 1996 14.710 .909 .387 (.936) -- 1995 14.680 .912 .110 (.948) (.044) 1994 15.030 .911 (.313) (.948) -- 1993 13.920 .903 .997 (.790) -- 3/19/92 to 3/31/92 14.230 .007 .018 -- -- NXQ Year ended 3/31, 1997 14.920 .877 .046 (.893) -- 1996 14.570 .879 .378 (.907) -- 1995 14.550 .885 .042 (.907) -- 1994 14.760 .881 (.184) (.907) -- 5/21/92 to 3/31/93 14.150 .710 .702 (.605) -- NXR Year ended 3/31, 1997 14.230 .820 .131 (.831) -- 1996 13.900 .826 .344 (.840) -- 1995 13.830 .798 .112 (.840) -- 1994 14.270 .820 (.419) (.841) -- 7/24/92 to 3/31/93 14.150 .521 .280 (.424) -- Per share Organiza- market Portfolio tional and Net asset value structur- offering value end end of ing fee costs of period period NXP Year ended 3/31, 1997 $ -- $ -- $15.150 $14.750 1996 -- -- 15.070 15.000 1995 -- -- 14.710 14.625 1994 -- -- 14.680 14.375 1993 -- -- 15.030 15.250 3/19/92 to 3/31/92 (.212) (.123) 13.920 15.000 NXQ Year ended 3/31, 1997 -- -- 14.950 14.125 1996 -- -- 14.920 14.875 1995 -- -- 14.570 14.000 1994 -- -- 14.550 13.750 5/21/92 to 3/31/93 (.134) (.063) 14.760 14.750 NXR Year ended 3/31, 1997 -- -- 14.350 13.250 1996 -- -- 14.230 13.625 1995 -- -- 13.900 13.000 1994 -- -- 13.830 13.500 7/24/92 to 3/31/93 (.134) (.123) 14.270 14.125 Ratios/Supplemental data Total invest- Ratio of Ratio of ment Total expenses net return return Net assets to investment on on end of average income Portfolio market net asset period (in net to average turnover value** value** thousands) assets net assets rate NXP Year ended 3/31, 1997 4.58% 6.79% $248,092 .39% 5.97% 1% 1996 9.14 8.97 246,858 .36 6.02 1 1995 9.14 7.38 240,890 .37 6.32 17 1994 .23 3.85 240,398 .38 5.90 10 1993 7.38 13.98 246,166 .27+ 6.23 1 3/19/92 to 3/31/92 -- (2.18) 212,430 .39* 3.64* -- NXQ Year ended 3/31, 1997 .93 6.34 263,176 .42 5.86 2 1996 13.02 8.79 262,768 .42 5.89 1 1995 8.84 6.74 256,548 .41 6.22 12 1994 (.94) 4.63 256,098 .41 5.79 1 5/21/92 to 3/31/93 2.59 8.60 259,876 .42* 5.93* 6 NXR Year ended 3/31, 1997 3.30 6.85 186,065 .44 5.74 5 1996 11.41 8.56 184,464 .44 5.79 4 1995 2.82 6.97 180,226 .51 6.09 7 1994 1.37 2.64 89,988 .48 5.60 8 7/24/92 to 3/31/93 (2.91) 3.82 92,845 .49* 5.65* 18 See notes on page 58.
FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
Operating performance Net Dividends realized & from Distribu- Net unrealized tax-exempt tions asset Net gain (loss) net from value invest- from invest- net beginning ment invest- ment capital of period income ments income gains NXC Year ended 3/31, 1997 $14.420 $ .797 $ .117 $(.804) $-- 1996 14.160 .799 .273 (.812) -- 1995 13.920 .795 .262 (.817) -- 1994 14.530 .787 (.580) (.817) -- 6/19/92 to 3/31/93 14.150 .558 .518 (.477) -- NXN Year ended 3/31, 1997 14.250 .778 .032 (.780) -- 1996 14.040 .783 .207 (.780) -- 1995 13.860 .768 .192 (.780) -- 1994 14.370 .759 (.489) (.780) -- 6/19/92 to 3/31/93 14.150 .520 .432 (.468) -- Per share Organiza- market Portfolio tional and Net asset value structur- offering value end end of ing fee costs of period period NXC Year ended 3/31, 1997 $ -- $ -- $14.530 $13.875 1996 -- -- 14.420 14.250 1995 -- -- 14.160 13.750 1994 -- -- 13.920 14.000 6/19/92 to 3/31/93 (.135) (.084) 14.530 14.875 NXN Year ended 3/31, 1997 -- -- 14.280 13.375 1996 -- -- 14.250 13.500 1995 -- -- 14.040 13.125 1994 -- -- 13.860 13.500 6/19/92 to 3/31/93 (.133) (.131) 14.370 14.625 Ratios/Supplemental data Total invest- Ratio of Ratio of ment Total expenses net return return Net assets to investment on on end of average income Portfolio market net asset period (in net to average turnover value** value** thousands) assets net assets rate NXC Year ended 3/31, 1997 3.06% 6.46% $90,894 .45% 5.47% --% 1996 9.80 7.67 90,223 .44 5.50 -- 1995 4.47 7.97 88,586 .48 5.77 7 1994 (.51) 1.19 87,116 .47 5.27 -- 6/19/92 to 3/31/93 2.39 6.21 90,898 .55* 5.29* 17 NXN Year ended 3/31, 1997 4.91 5.79 55,782 .51 5.42 -- 1996 8.94 7.13 55,682 .48 5.44 -- 1995 3.43 7.28 54,855 .57 5.63 14 1994 (2.54) 1.68 54,159 .54 5.14 -- 6/19/92 to 3/31/93 .74 5.01 56,144 .62* 5.00* 29 * Annualized. ** Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Net Asset Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in net asset value per share. + Surveillance and Administration fees commenced October 1, 1992.
Serving investors for generations Photographic image of John Nuveen Sr., founder of Nuveen. Since our founding in 1898, John Nuveen & Co. Incorporated has been synonymous with investments that withstand the test of time. Today, we offer a broad range of investments designed for mature investors whose portfolios are the principal source of their ongoing financial security. More than 1.3 million investors have entrusted Nuveen to help them maintain the lifestyle they currently enjoy. A value investing approach--purchasing securities of strong companies and communities that represent good long-term value--is the cornerstone of Nuveen's investment philosophy. It is a careful, long-term strategy that offers the potential for attractive returns with moderated risk. Successful value investing begins with in-depth research and a discerning eye for marketplace opportunity. Nuveen's team of investment professionals is backed by the discipline, resources and expertise of almost a century of investment experience, including one of the most recognized municipal research departments in the industry. To meet the unique circumstances and financial planning needs of mature investors, Nuveen offers a wide array of taxable and tax-free investment products--including equity and fixed-income mutual funds, unit trusts, exchange-traded funds, individual managed account services, and cash management products. John Nuveen & Co. Incorporated 333 West Wacker Drive Chicago, Illinois 60606-1286 PAN-1-3.97 -----END PRIVACY-ENHANCED MESSAGE-----