-----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, V+a/iJaw3vRe/c6XfW0l668Oo68Gr77MWAid2IRmeoGEmusWRkj6Jnc2wSexK7ef dck+sFqgPLSv29C7xTpbDA== 0000891804-97-000443.txt : 19971202 0000891804-97-000443.hdr.sgml : 19971202 ACCESSION NUMBER: 0000891804-97-000443 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971201 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: SEC FILE NUMBER: 811-06624 FILM NUMBER: 97730497 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 Funds September 30, 1997 Semiannual Report Dependable, tax-free income to help you keep more of what you earn. NXP NXQ NXR NXC NXN Select Portfolios Photo of: Two people on the dock. Contents 1 Dear Shareholder 4 Answering Your Questions 7 NXP Performance Overview 8 NXQ Performance Overview 9 NXR Performance Overview 10 NXC Performance Overview 11 NXN Performance Overview 12 Shareholder Meeting Report 13 Financial Section 48 Fund Information Photo of: Anthony T. Dean Chairman of the Board Wealth takes a lifetime to build. Once achieved, it should be preserved. Dear Shareholder It's a pleasure to report to you on the performance of the Nuveen Select Tax-Free Portfolios, a uniquely structured group of portfolios designed and managed to achieve income stability over a defined term. Over the past 12 months, the portfolios have performed well, continuing to reward investors by providing dependable tax-free income. In meeting their objective of income stability, the Select Portfolios continued to provide shareholders with attractive yields generated by portfolios of quality bonds. As of September 30, 1997, shareholders were receiving current market yields that ranged from 5.29% to 5.83%. To match these yields, investors in the 31% federal income tax bracket would have had to earn at least 7.67% on taxable alternatives. When investors in the California and New York portfolios take state taxes into account, the tax-free advantage is even greater. For the year ended September 30, 1997, the value of the portfolios rose between 8.58% and 9.68%, providing taxable equivalent returns in the range of 11.67% to 12.44%. Each portfolio's individual performance is detailed on pages 7-11. This performance was achieved in an environment of continued economic strength and the lowest unemployment rates in more than two decades, a combination that in the past has been accompanied by an increase in inflation. Current conditions, however, indicate that inflation is under control, with the Consumer Price Index currently running at one of its lowest levels in 30 years. Following this spring's move to tighten short-term interest rates, the Federal Reserve demonstrated its confidence in the economy's path by maintaining the status quo in subsequent months. So far in 1997, investors and the markets have focused their attention on fiscal issues such as the federal budget accord, the reduction in the federal deficit, and tax relief measures, including a capital gains tax cut. Although the markets have experienced volatility, especially in recent weeks, interest rates have generally fallen over the past two quarters, providing a good environment for bond market performance. A renewed emphasis on diversification and asset allocation -- as well as attractive tax-free yields -- have sparked increased interest in municipal bonds. The current level and volatility of the stock market remind investors to reallocate profits to other segments of the market in order to limit risk. Nuveen Select Portfolios offer an excellent alternative, and their unique structure, life cycle, and ability to provide income stability make them very attractive. As part of our commitment to helping prudent investors achieve their investment goals, Nuveen now also offers a variety of other products and services in addition to our range of municipal mutual funds. We recently celebrated the successful first year of the Nuveen Growth and Income Stock Fund as well as two new balanced stock and bond funds. We also expanded our private asset management capabilities through the recent acquisition of Rittenhouse Financial Services, a well-respected growth investment manager. We encourage you to discuss with your financial adviser how your portfolio might take advantage of these new Nuveen products and services. We at Nuveen remain committed to providing you with quality investment solutions that withstand the test of time. We thank you for your confidence in us and our family of investments, and we look forward to reporting to you again in six months. Sincerely, Anthony T. Dean Chairman of the Board November 17, 1997 "The portfolios have performed well, continuing to reward investors by providing dependable tax-free income." ANSWERING YOUR QUESTIONS RON TOUPIN, MANAGER OF NUVEEN'S SELECT PORTFOLIOS, TALKS ABOUT THE MUNICIPAL BOND MARKET AND OFFERS INSIGHTS INTO FACTORS THAT AFFECTED THE PERFORMANCE OF THE PORTFOLIOS OVER THE PAST YEAR. WHAT ECONOMIC AND MARKET FACTORS INFLUENCED THE PERFORMANCE OF THE PORTFOLIOS OVER THE PAST YEAR? Over the past 12 months, minimal inflation and a reduction in the federal deficit brought lower interest rates and an increase in bond prices. The yield on the 30-year Treasury bond dropped from 6.91% to 6.37%, and the municipal market followed suit, as the yield on the Bond Buyer 40 declined from 5.88% to 5.46% between October 1996 and September 1997. The lower interest rate environment also led to a number of advance refundings by bond issuers. HOW HAVE THE PORTFOLIOS PERFORMED DURING THIS PERIOD? As Tony mentioned in his letter to shareholders, total returns on net asset value for the Select Portfolios ranged from 8.58% to 9.68% for the 12 months ended September 30, 1997. This compares well with the average one-year return of 8.47% for the closest peer comparison, the Lipper National Unleveraged Closed-End Funds category. However, the unique structure of the Select Portfolios -- with an essentially fixed portfolio and a defined term -- makes it difficult to compare with peer groups that are comprised of more actively managed funds. The most important thing to note about the performance of the Select Portfolios is that they are achieving exactly what they were designed to do: provide steady current income. As their net asset values have appreciated, the market has once again begun to realize the value offered by these investments. As a result, we have seen discounts on the portfolios narrow significantly. GIVEN THE CURRENT MUNICIPAL BOND MARKET, WHAT WAS YOUR APPROACH TO PORTFOLIO MANAGEMENT DURING THIS YEAR? The Select Portfolios are designed as a source of dependable tax-free income with a set maturity schedule. They provide income and maturity that is similar to individual bonds, while offering the benefits of diversification and ongoing surveillance. Over the past year, we continued to monitor portfolio holdings closely to ensure that they remain fully invested and to anticipate and avoid credit problems. Because of the limited amount of trading in the funds, the fees for the Select Portfolios are lower than those for comparable funds with more actively managed portfolios. WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET? Overall, we expect supply to increase moderately as the economy continues to grow. A continued decline in yields could also cause new supply to come into the market through refunding of current debt. If volatility in the equity market continues at current levels, we expect demand for bonds to remain strong as shareholders move some of the assets from stocks into bonds. WHAT ARE YOUR KEY STRATEGIES FOR THE COMING YEAR? Since stability of income is the foremost portfolio objective, we make changes only when we can improve income or credit quality, or when we reinvest the proceeds of called bonds. Beginning in 2001, a large portion of the bonds in the portfolios could be called by their issuers. Our current strategy calls for restructuring the portfolio to pre-empt some of the bond calls, if interest rates remain lower than they were when the portfolios were originally assembled in 1992. Our approach will be very systematic as we look for opportunities to enhance yields. ARE THERE ANY SPECIAL SITUATIONS THAT HAVE PROVIDED OPPORTUNITIES TO ENHANCE THE PORTFOLIOS? One situation involved bonds issued for the Denver airport. We purchased these bonds when we felt that they were undervalued by the market, based on Nuveen research that indicated a potential increase in value. Many of these bonds have already been pre-refunded, improving the credit quality of the portfolios and increasing their value. Income Portfolio Performance Overview As of September 30, 1997 NXP Fund Highlights - --------------------------------------------- Inception Date 3/92 - --------------------------------------------- Share Price 15 7/16 - --------------------------------------------- Net Asset Value $15.61 - --------------------------------------------- Current Market Yield 5.83% - --------------------------------------------- Taxable Equivalent Yield(1) 8.45% - --------------------------------------------- Annualized Total Return (at NAV) - --------------------------------------------- 1-Year 9.38% - --------------------------------------------- 3-Year 9.38% - --------------------------------------------- 5-Year 7.90% - --------------------------------------------- Since Inception 8.03% - --------------------------------------------- Taxable Equivalent Total Return(2) - --------------------------------------------- 1-Year 12.16% - --------------------------------------------- 3-Year 12.27% - --------------------------------------------- 5-Year 10.79% - --------------------------------------------- Since Inception 10.83% - --------------------------------------------- 1 Taxable equivalent yield represents the yield on a taxable investment necessary to equal the after-tax yield of the Nuveen fund. It is based on the current market yield and a federal tax rate of 31%. 2 Taxable equivalent total return is based on the annualized total return and a federal income tax rate of 31%. It represents the return on a taxable investment necessary to equal the return of the Nuveen fund on an after-tax basis. PIE CHARTS Credit Quality AA 11% A 32% BBB/NR 17% AAA 40% Diversification Other 8% Lease Rental 5% Health Care 9% Education 5% Transportation 8% Housing 16% Escrowed Bonds 42% BAR CHART Dividend History 10/96 0.0765 11/96 0.0765 12/96 0.0765 1/97 0.0765 2/97 0.0765 3/97 0.0765 4/97 0.0765 5/97 0.075 6/97 0.075 7/97 0.075 8/97 0.075 9/97 0.075 Income Portfolio 2 Performance Overview As of September 30, 1997 NXQ Fund Highlights - --------------------------------------------- Inception Date 5/92 - --------------------------------------------- Share Price 15 1/4 - --------------------------------------------- Net Asset Value $15.37 - --------------------------------------------- Current Market Yield 5.82% - --------------------------------------------- Taxable Equivalent Yield(1) 8.43% - --------------------------------------------- Annualized Total Return (at NAV) - --------------------------------------------- 1-Year 8.93% - --------------------------------------------- 3-Year 8.96% - --------------------------------------------- 5-Year 7.65% - --------------------------------------------- Since Inception 7.67% - --------------------------------------------- Taxable Equivalent Total Return(2) - --------------------------------------------- 1-Year 11.67% - --------------------------------------------- 3-Year 11.79% - --------------------------------------------- 5-Year 10.47% - --------------------------------------------- Since Inception 10.40% - --------------------------------------------- 1 Taxable equivalent yield represents the yield on a taxable investment necessary to equal the after-tax yield of the Nuveen fund. It is based on the current market yield and a federal tax rate of 31%. 2 Taxable equivalent total return is based on the annualized total return and a federal income tax rate of 31%. It represents the return on a taxable investment necessary to equal the return of the Nuveen fund on an after-tax basis. PIE CHARTS Credit Quality AA 15% A 28% BBB/NR 21% AAA 36% Diversification Industrial Development Revenue 4% Other 5% Lease Rental 5% Health Care 10% Education 11% Transportation 7% Housing 19% Escrowed Bonds 28% General Obligation 11% BAR CHART Dividend History 10/96 0.074 11/96 0.074 12/96 0.074 1/97 0.074 2/97 0.074 3/97 0.074 4/97 0.074 5/97 0.074 6/97 0.074 7/97 0.074 8/97 0.074 9/97 0.074 Income Portfolio 3 Performance Overview As of September 30, 1997 NXR Fund Highlights - --------------------------------------------- Inception Date 7/92 - --------------------------------------------- Share Price 14 5/16 - --------------------------------------------- Net Asset Value $14.83 - --------------------------------------------- Current Market Yield 5.79% - --------------------------------------------- Taxable Equivalent Yield(1) 8.39% - --------------------------------------------- Annualized Total Return (at NAV) - --------------------------------------------- 1-Year 9.68% - --------------------------------------------- 3-Year 9.42% - --------------------------------------------- 5-Year 7.60% - --------------------------------------------- Since Inception 6.80% - --------------------------------------------- Taxable Equivalent Total Return(2) - --------------------------------------------- 1-Year 12.35% - --------------------------------------------- 3-Year 12.18% - --------------------------------------------- 5-Year 10.34% - --------------------------------------------- Since Inception 9.43% - --------------------------------------------- 1 Taxable equivalent yield represents the yield on a taxable investment necessary to equal the after-tax yield of the Nuveen fund. It is based on the current market yield and a federal tax rate of 31%. 2 Taxable equivalent total return is based on the annualized total return and a federal income tax rate of 31%. It represents the return on a taxable investment necessary to equal the return of the Nuveen fund on an after-tax basis. PIE CHARTS Credit Quality AA 29% A 20% BBB/NR 23% AAA 28% Diversification Pollution Control 7% Utilities 4% Heatlh Care 15% Lease Rental 5% Water & Sewer 6% Education 3% Transportation 17% Other 1% Housing 15% Escrowed Bonds 20% General Obligation 7% BAR CHART Dividend History 10/96 0.069 11/96 0.069 12/96 0.069 1/97 0.069 2/97 0.069 3/97 0.069 4/97 0.069 5/97 0.069 6/97 0.069 7/97 0.069 8/97 0.069 9/97 0.069 Insured California Performance Overview As of September 30, 1997 NXC Fund Highlights - --------------------------------------------- Inception Date 6/92 - --------------------------------------------- Share Price 14 3/4 - --------------------------------------------- Net Asset Value $15.06 - --------------------------------------------- Current Market Yield 5.45% - --------------------------------------------- Taxable Equivalent Yield (Federal Only)(1) 7.90% - --------------------------------------------- Taxable Equivalent Yield (Federal and State)(1) 8.72% - --------------------------------------------- Annualized Total Return (at NAV) - --------------------------------------------- 1-Year 9.04% - --------------------------------------------- 3-Year 8.92% - --------------------------------------------- 5-Year 7.37% - --------------------------------------------- Since Inception 6.80% - --------------------------------------------- Taxable Equivalent Total Return(2) - --------------------------------------------- 1-Year 12.44% - --------------------------------------------- 3-Year 12.42% - --------------------------------------------- 5-Year 10.85% - --------------------------------------------- Since Inception 10.14% - --------------------------------------------- 1 Taxable equivalent yield represents the yield on a taxable investment necessary to equal the after-tax yield of the Nuveen fund. The federal only rate is based on the current market yield and a federal tax rate of 31%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state taxes. It is based on a combined federal and state tax rate of 37.5%. 2 Taxable equivalent total return is based on the annualized total return and a combined federal and state income tax rate of 37.5%. It represents the return on a taxable investment necessary to equal the return of the Nuveen fund on an after-tax basis. PIE CHARTS Credit Quality Escrowed 14% Insured 86% Diversification Utilities 12% Other 13% Lease Rental 15% Water & Sewer 17% Health Care 9% Transportation 15% Escrowed Bonds 14% General Obligation 5% BAR CHART Dividend History 10/96 0.067 11/96 0.067 12/96 0.067 1/97 0.067 2/97 0.067 3/97 0.067 4/97 0.067 5/97 0.067 6/97 0.067 7/97 0.067 8/97 0.067 9/97 0.067 Insured New York Performance Overview As of September 30, 1997 NXN Fund Highlights - --------------------------------------------- Inception Date 6/92 - --------------------------------------------- Share Price 14 3/4 - --------------------------------------------- Net Asset Value $14.80 - --------------------------------------------- Current Market Yield 5.29% - --------------------------------------------- Taxable Equivalent Yield (Federal Only)(1) 7.67% - --------------------------------------------- Taxable Equivalent Yield (Federal and State)(1) 8.20% - --------------------------------------------- Annualized Total Return (at NAV) - --------------------------------------------- 1-Year 8.58% - --------------------------------------------- 3-Year 8.57% - --------------------------------------------- 5-Year 7.14% - --------------------------------------------- Since Inception 6.31% - --------------------------------------------- Taxable Equivalent Total Return(2) - --------------------------------------------- 1-Year 11.64% - --------------------------------------------- 3-Year 11.70% - --------------------------------------------- 5-Year 10.24% - --------------------------------------------- Since Inception 9.28% - --------------------------------------------- 1 Taxable equivalent yield represents the yield on a taxable investment necessary to equal the after-tax yield of the Nuveen fund. The federal only rate is based on the current market yield and a federal tax rate of 31%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state taxes. It is based on a combined federal and state tax rate of 35.5%. 2 Taxable equivalent total return is based on the annualized total return and a combined federal and state income tax rate of 35.5%. It represents the return on a taxable investment necessary to equal the return of the Nuveen fund on an after-tax basis. PIE CHARTS Credit Quality Escrowed 19% Insured 81% Diversification Utilities 4% Other 7% Water & Sewer 13% Education 23% Transportation 7% Housing 15% Escrowed Bonds 19% General Obligation 12% BAR CHART Dividend History 10/96 0.065 11/96 0.065 12/96 0.065 1/97 0.065 2/97 0.065 3/97 0.065 4/97 0.065 5/97 0.065 6/97 0.065 7/97 0.065 8/97 0.065 9/97 0.065 Shareholder Meeting Report Annual Meeting Date: July 24, 1997
NXP NXQ NXR NXC NXN - ----------------------------------------------------------------------------------------------------------------------- Total Shares Outstanding: 16,378,097.0000 17,607,068.0000 12,964,123.0000 6,257,068.0000 3,907,068.0000 - ----------------------------------------------------------------------------------------------------------------------- Total Shares Voted: 14,792,774.3230 16,093,906.4310 11,947,944.1350 5,702,618.9890 3,614,544.7600 - ----------------------------------------------------------------------------------------------------------------------- James E. Bacon For 14,616,637.6510 15,977,916.1840 11,844,463.7860 5,662,040.0250 3,595,872.7930 Withhold 176,136.6720 115,990.2470 103,480.3490 40,578.9640 18,671.9670 - ----------------------------------------------------------------------------------------------------------------------- Total 14,792,774.3230 16,093,906.4310 11,947,944.1350 5,702,618.9890 3,614,544.7600 Anthony T. Dean For 14,613,399.6510 15,980,030.1840 11,842,999.7860 5,665,017.0250 3,596,172.7930 Withhold 179,374.6720 113,876.2470 104,944.3490 37,601.9640 18,371.9670 - ----------------------------------------------------------------------------------------------------------------------- Total 14,792,774.3230 16,093,906.4310 11,947,944.1350 5,702,618.9890 3,614,544.7600 William L. Kissick For 14,615,599.6510 15,979,301.1840 11,843,917.7860 5,666,717.0250 3,595,872.7930 Withhold 177,174.6720 114,605.2470 104,026.3490 35,901.9640 18,671.9670 - ----------------------------------------------------------------------------------------------------------------------- Total 14,792,774.3230 16,093,906.4310 11,947,944.1350 5,702,618.9890 3,614,544.7600 Thomas E. Leafstrand For 14,617,702.6510 15,979,038.1840 11,838,872.7860 5,665,717.0250 3,596,172.7930 Withhold 175,071.6720 114,868.2470 109,071.3490 36,901.9640 18,371.9670 - ----------------------------------------------------------------------------------------------------------------------- Total 14,792,774.3230 16,093,906.4310 11,947,944.1350 5,702,618.9890 3,614,544.7600 Timothy R. Schwertfeger For 14,613,532.6510 15,978,211.1840 11,840,599.7860 5,665,717.0250 3,595,872.7930 Withhold 179,241.6720 115,695.2470 108,344.3490 36,901.9640 18,671.9670 - ----------------------------------------------------------------------------------------------------------------------- Total 14,792,774.3230 16,093,906.4310 11,948,944.1350 5,702,618.9890 3,614,544.7600 Sheila W. Wellington For 14,619,002.6510 15,977,678.1840 11,842,591.7860 5,664,317.0250 3,596,172.7930 Withhold 173,771.6720 116,228.2470 106,352.3490 38,301.9640 18,371.9670 - ----------------------------------------------------------------------------------------------------------------------- Total 14,792,774.3230 16,093,906.4310 11,948,944.1350 5,702,618.9890 3,614,544.7600 Ratification of Auditors For 14,583,789.9790 15,878,183.7850 11,807,923.3520 5,629,291.8340 3,572,485.7120 Against 37,711.8740 64,686.8060 46,719.3610 3,102.8940 9,360.5530 Abstain 171,272.4700 151,034.8400 93,302.4220 70,223.2610 32,700.4950 - ----------------------------------------------------------------------------------------------------------------------- Total 14,792,774.3230 16,093,905.4310 11,947,945.1350 5,702,617.9890 3,614,546.7600
Financial Section Contents 14 Portfolio of Investments 31 Statement of Net Assets 33 Statement of Operations 35 Statement of Changes in Net Assets 38 Notes to Financial Statements 44 Financial Highlights Portfolio of Investments Nuveen Select Tax-Free Income Portfolio (NXP) (Unaudited)
Principal Optional Call Market Amount Description Provisions* Ratings** Value ALABAMA - 0.2% $ 535,000 Alabama Housing Finance Authority, Single Family Mortgage Revenue Bonds 4/04 at 102 Aaa $ 569,384 (Collateralized Home Mortgage Revenue Bond Program), 1994 Series A-1 Bonds, 6.550%, 10/01/14 - ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.1% 2,500,000 Little Rock Health Facilities Board (Arkansas), Refunding Revenue Bonds 4/02 at 102 A 2,719,325 (Baptist Medical Center/Parkway Village Project), Series 1992, 7.000%, 10/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 6.4% 4,750,000 California State Public Works Board, Lease Revenue Bonds (California Community 3/04 at 102 Aaa 5,564,720 Colleges), 1994 Series B, 7.000%, 3/01/14 (Pre-refunded to 3/01/04) 4,905,000 California Statewide Communities Development Authority, Revenue Certificates 8/02 at 102 A1 5,296,664 of Participation (Cedars-Sinai Medical Center), 6.500%, 8/01/15 3,000,000 State Public Works Board of the State of California Lease Revenue Bonds 11/04 at 102 Aaa 3,529,560 (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) 2,000,000 Los Angeles County Metropolitan Transportation Authority (California), 7/03 at 102 Aaa 2,034,340 Proposition A, Sales Tax Revenue Refunding Bonds, Series 1993-A, 5.625%, 7/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 7.5% Colorado Housing Finance Authority, Single Family Program Senior Revenue Bonds, Series 1992A-1: 4,190,000 6.800%, 11/01/12 5/02 at 102 AA 4,450,409 1,175,000 6.875%, 11/01/16 5/02 at 102 AA 1,245,665 10,750,000 City and County of Denver, Colorado, Airport System Revenue Bonds, No Opt. Call Baa1 13,419,225 Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 0.4% 1,000,000 District of Columbia, Hospital Revenue and Refunding Bonds (Medlantic 8/06 at 102 Aaa 1,035,090 Healthcare Group, Inc. Issue), Series 1996A, 5.750%, 8/15/16 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 3.1% 7,000,000 State Board of Education of Florida, Public Education Capital Outlay Bonds, 6/02 at 101 Aaa 7,762,230 Series 1991-C, 6.625%, 6/01/22 (Pre-refunded to 6/01/02) 250,000 Escambia County, Florida, Pollution Control Revenue Bonds (Champion 12/03 at 102 Baa1 254,683 International Project), Series 1993, 5.875%, 6/01/22 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 12.0% 1,260,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds (Loyola 7/01 at 102 A1 1,406,551 University of Chicago), Series 1991-A, 7.125%, 7/01/11 (Pre-refunded to 7/01/01) 3,000,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds 7/03 at 102 A1 3,308,850 (Loyola University of Chicago), Series 1989-A, 6.100%, 7/01/15 (Pre-refunded to 7/01/03) 2,365,000 Illinois Health Facilities Authority, Revenue Bonds and Revenue Refunding No Opt. Call AA- 2,637,968 Bonds, Series 1992B (Evangelical Hospitals Corporation), 6.500%, 4/15/09 3,850,000 Illinois Health Facilities Authority, Revenue Bonds (Sarah Bush Lincoln 5/02 at 102 Aaa 4,387,383 Health Center), Series 1992, 7.250%, 5/15/22 (Pre-refunded to 5/15/02) 2,000,000 State of Illinois General Obligation Bonds, Series of August 1994, 8/04 at 102 AA 2,080,140 5.875%, 8/01/14 Principal Optional Call Market Amount Description Provisions* Ratings** Value ILLINOIS - continued City of Chicago Heights, Illinois, General Obligation Bonds, Series 1993 (Corporate Purpose Bonds): $3,820,000 5.650%, 12/01/15 12/08 at 100 Aaa $ 3,931,964 2,600,000 5.650%, 12/01/17 12/08 at 100 Aaa 2,667,366 7,000,000 The County of Cook, Illinois, General Obligation Bonds, Series 1992A, 11/02 at 102 Aaa 7,857,710 6.600%, 11/15/22 (Pre-refunded to 11/15/02) 2,500,000 Regional Transportation Authority (Cook, DuPage, Kane, Lake, McHenry and Will 6/03 at 102 Aaa 2,611,350 Counties in Illinois), General Obligation Bonds, Series 1993A, 5.800%, 6/01/13 - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 2.7% 3,000,000 Indiana Bond Bank, Special Hospital Program (Hendricks Community Hospital 4/02 at 102 A 3,306,090 Financing Program), Series 1992A, 7.125%, 4/01/13 Indiana Bond Bank, Special Program Bonds, Series 1992 A: 1,000,000 7.000%, 8/01/12 2/02 at 102 A 1,084,990 2,250,000 7.000%, 8/01/18 2/02 at 102 A 2,429,370 - ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 1.1% 2,565,000 Woodbury County, Iowa, Hospital Facility Revenue Bonds (St. Luke's 3/01 at 102 Aaa 2,816,396 Regional Medical Center Project), Series 1991A, 6.750%, 3/01/21 (Pre-refunded to 3/01/01) - ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 4.0% 9,000,000 City of Wichita, Kansas, Revenue Bonds (CSJ Health System of Wichita, Inc.), 11/01 at 102 A+ 10,300,950 Series 1985 XXV (Remarketed), 7.200%, 10/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 1.4% 3,230,000 Lexington-Fayette Urban County Government (Kentucky), Governmental Project 11/04 at 102 Aaa 3,663,078 Revenue Bonds, Series 1994 (University of Kentucky Alumni Association, Inc. Commonwealth Library Project), 6.750%, 11/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ 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) 12/02 at 102 Aaa 2,195,224 2,310,000 7.000%, 12/01/16 (Alternative Minimum Tax) 12/02 at 102 Aaa 2,491,150 1,270,000 Maine Educational Loan Authority, Educational Loan Revenue Bonds, 12/02 at 102 A 1,375,067 Series 1992A-2 (Supplemental Educational Loan Program), 7.150%, 12/01/16 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 0.9% 2,000,000 Plymouth County (Massachusetts), Certificates of Participation (Plymouth County 10/02 at 102 A- 2,239,420 Correctional Facility), Series A, 7.000%, 4/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 1.6% 3,600,000 Calhoun County (Mississippi), Solid Waste Disposal Revenue Bonds (Weyerhauser 4/07 at 103 A 3,995,208 Company Project), Series 1992, 6.875%, 4/01/16 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 4.1% 10,000,000 New Hampshire Housing Finance Authority, Multi-Family Housing Revenue Refunding 7/01 at 102 A1 10,545,100 Bonds, 1991 Series 1, 7.050%, 7/01/11 Principal Optional Call Market Amount Description Provisions* Ratings** Value NEW YORK - 11.6% $2,090,000 New York Local Government Assistance Corporation, New York, Series 1991B, 4/01 at 100 Aaa $2,283,764 7.000%, 4/01/21 (Pre-refunded to 4/01/01) 1,365,000 New York Local Government Assistance Corporation (A Public Benefit 4/02 at 102 Aaa 1,542,054 Corporation of the State of New York), Series 1991D Bonds, 7.000%, 4/01/18 (Pre-refunded to 4/01/02) 1,395,000 New York Medical Care Facilities Finance Agency, Mental Health 2/02 at 102 A- 1,587,956 Services Facilities Improvement Revenue Bonds, 1991 Series D, 7.400%, 2/15/18 (Pre-refunded to 2/15/02) 1,425,000 New York Medical Care Facilities Finance Agency, Mental Health 2/02 at 102 A- 1,598,109 Services Facilities Improvement Revenue Bonds, 1991 Series D, 7.400% 2/15/18 4,465,000 New York State Dormitory Authority, State University Educational 5/02 at 102 Aaa 5,102,379 Facilities Revenue Bonds, Series 1991A, 7.250%, 5/15/18 (Pre-refunded to 5/15/02) 180,000 New York State Medical Care Facilities Finance Agency, Mental Health 2/01 at 102 Aaa 202,003 Services Facilities Improvement Revenue Bonds, 1991 Series A, 7.500%, 2/15/21 (Pre-refunded 2/15/01) 900,000 New York State Medical Care Facilities Finance Agency, Mental Health Services 2/01 at 102 A- 998,793 Facilities, Improvement Revenue Bonds, 1991 Series A, 7.500%, 2/15/21 7,250,000 Metropolitan Transportation Authority (New York), Commuter Facilities 7/01 at 102 Baa1 7,904,603 1987 Service Contract Bonds, Series 5, 7.000%, 7/01/12 3,000,000 Metropolitan Transportation Authority (New York), Transit Facilities 7/02 at 100 Baa1 3,095,820 Service Contract Bonds, Series N, 6.000%, 7/01/11 5,170,000 The City of New York, New York, General Obligation Bonds, Fiscal 1995 Series A, 8/04 at 101 1/2 Baa1 5,517,734 6.250%, 8/01/10 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 1.2% 2,845,000 Ohio Housing Finance Agency Residential Mortgage Revenue Bonds (Mortgage-Backed 9/07 at 102 AAA 3,005,828 Securities), 1997 Series A1, 6.050%, 9/01/17 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 5.0% 2,500,000 Pennsylvania Higher Educational Facilities Authority Revenue Bonds 8/02 at 102 Aa3 2,732,300 (Thomas Jefferson University), 1992 Series A, 6.625%, 8/15/09 1,580,000 Pennsylvania Housing Finance Agency, Single Family Mortgage, Revenue 4/02 at 102 AA+ 1,677,612 Bonds, Series 1992-33, 6.900%, 4/01/17 7,235,000 Delaware County Authority (Pennsylvania), First Mortgage Revenue Bonds 4/02 at 102 N/R 8,441,075 (The Dunwoody Project), Series 1992, 8.125%, 4/01/17 (Pre-refunded to 4/01/02) - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 3.9% 5,000,000 South Carolina Housing Finance and Development Authority, Multifamily Housing 5/02 at 102 Aaa 5,280,500 Revenue Bonds, 1992 Series A, 6.875%, 11/15/23 4,060,000 York County (South Carolina), Public Facilities Corporation, 6/01 at 102 Aaa 4,582,847 Certificates of Participation (York County Justice Center Project), Series 1991, 7.500%, 6/01/11 (Pre-refunded to 6/01/01) - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 2.3% 5,750,000 Memphis-Shelby County Airport Authority (Tennessee), Airport Special 7/03 at 102 BBB 5,960,335 Facilities and Project Revenue Bonds (Federal Express Corporation), Series 1993, 6.200%, 7/01/14 (Alternative Minimum Tax) Principal Optional Call Market Amount Description Provisions* Ratings** Value TEXAS - 9.6% $9,825,000 Harris County Health Facilities Development Corporation (Texas), Hospital 6/02 at 102 A2 $11,217,989 Revenue Bonds (Memorial Hospital System Project), Series 1992, 7.125%, 6/01/15 (Pre-refunded to 6/01/02) 4,000,000 Port of Corpus Christi Authority of Nueces County (Texas), Pollution Control 4/02 at 102 A+ 4,336,120 Revenue Bonds (Hoechst Celanese Corporation), Series 1992, 6.875%, 4/01/17 (Alternative Minimum Tax) 3,500,000 Red River Authority (Texas), Pollution Control Revenue Bonds (Hoechst Celanese 4/02 at 102 A+ 3,801,175 Corporation), Series 1992, 6.875%, 4/01/17 (Alternative Minimum Tax) 4,705,000 City of San Antonio, Texas, Water System Revenue Refunding Bonds, Series 1992, 5/02 at 100 Aaa 4,892,871 6.000%, 5/15/16 295,000 San Antonio Water System Revenue Refunding Bonds, Series 1992, 6.000%, 5/15/16 No Opt. Call Aaa 317,308 - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 2.1% 5,070,000 Virginia Housing Development Authority, Commonwealth Mortgage Bonds, 1/02 at 102 Aa1 5,362,640 1992 Series A, 7.100%, 1/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 9.2% 2,750,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1992 2/02 at 102 AA- 2,976,408 (Sacred Heart Medical Center, Spokane), 6.875%, 2/15/12 10,000,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding Revenue 7/01 at 102 Aaa 11,077,200 Bonds, Series 1991A, 6.875%, 7/01/17 (Pre-refunded to 7/01/01) 2,500,000 Public Utility District No. 1 of Snohomish County, Washington, Electric 1/01 at 102 A1 2,689,925 System Refunding Revenue Bonds, Series 1991 A, 7.000%, 1/01/16 5,700,000 Public Utility District No. 1 of Snohomish County, Washington, 1/02 at 102 Aaa 6,739,680 Generation System Revenue Bonds, Series 1989, 6.750%, 1/01/12 - ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 1.3% 1,000,000 West Virginia Housing Development Fund, Housing Finance Bonds, 1992 Series A, 5/02 at 103 Aaa 1,076,200 7.000%, 5/01/24 1,885,000 Marshall County, West Virginia, Special Obligation Refunding Bonds, No Opt. Call AAA 2,147,976 Series 1992, 6.500%, 5/15/10 - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 2.1% 5,000,000 Wisconsin Housing and Economic Development Authority, Multi-Family 4/02 at 102 A1 5,315,749 Housing Revenue Bonds, 1992 Series B, 7.050%, 11/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ WYOMING - 1.3% 3,000,000 Wyoming Community Development Authority, Single Family Mortgage Revenue Bonds 11/01 at 103 AA 3,197,309 (Federally Insured or Guaranteed Mortgage Loans), Series 1988-G, 7.200%, 6/01/10 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ $228,155,000 Total Investments - (cost $223,870,838) - 98.5% 251,874,882 ============------------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 1.5% 3,820,361 ---------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $255,695,243 ====================================================================================================================== * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. N/R - Investment is not rated. See accompanying notes to financial statements.
Portfolio of Investments Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (Unaudited)
Principal Optional Call Market Amount Description Provisions* Ratings** Value CALIFORNIA - 4.9% $ 3,250,000 California State Public Works Board, Lease Revenue Bonds (California 3/04 at 102 Aaa $ 3,807,440 Community Colleges), 1994 Series B, 7.000%, 3/01/14 (Pre-refunded to 3/01/04) 2,000,000 State Public Works Board of the State of California, Lease Revenue No Opt. Call A1 2,078,660 Refunding Bonds (The Regents of the University of California), 1993 Series A (Various University of California Projects), 5.500%, 6/01/14 5,000,000 State Public Works Board of the State of California Lease Revenue Bonds 11/04 at 102 Aaa 5,882,600 (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) 500,000 County of Contra Costa, California (Merrithew Memorial Hospital Replacement 11/07 at 102 Aaa 499,670 Project), Refunding Series of 1997, 5.375%, 11/01/17 1,000,000 City of Fresno, California, Health Facility Revenue Refunding Bonds, 12/03 at 102 Aaa 1,021,240 Series 1993A (Holy Cross Health System Corporation), 5.625%, 12/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 6.3% 4,240,000 Colorado Housing Finance Authority, Single Family Program Senior Bonds, 5/02 at 102 AA 4,491,432 Series 1992A-3,7.000%, 11/01/24 (Alternative Minimum Tax) 11,465,000 City and County of Denver, Colorado, Airport System Revenue Bonds, 11/02 at 102 Baa1 12,669,398 Series 1992B, 7.250%, 11/15/12 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 5.1% 7,500,000 District of Columbia (Washington D.C.), General Obligation Bonds, Series 1992B, 6/02 at 102 Aaa 8,151,000 6.300%, 6/01/12 4,600,000 District of Columbia Hospital Revenue Refunding Bonds (Washington 8/02 at 102 Baa1 5,211,110 Hospital Center), Series 1992-A, 7.125%, 8/15/19 (Pre-refunded to 8/15/02) 500,000 District of Columbia, Hospital Revenue and Refunding Bonds 8/06 at 102 Aaa 517,545 (Medlantic Healthcare Group, Inc. Issue), Series 1996A, 5.750%, 8/15/16 - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 3.3% 8,180,000 Hillsborough County (Florida), Environmentally Sensitive Land Acquisition 7/02 at 102 A 8,826,138 and Protection Program Bonds, Series 1992, 6.375%, 7/01/11 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 12.0% 3,750,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds 12/04 at 100 BBB 3,992,363 (Columbia College), Series 1992, 6.875%, 12/01/17 2,500,000 Illinois Educational Facilities Authority, Revenue Bonds, Series 1993 12/03 at 102 BBB 2,539,025 (Columbia College), 6.125%, 12/01/18 8,500,000 Chicago Metropolitan Housing Development Corporation (Illinois), 7/02 at 102 AA 9,010,000 Housing Development Revenue Refunding Bonds (FHA-Insured Mortgage Loans-Section 8 Assisted Projects), Series 1992A, 6.800%, 7/01/17 8,070,000 The County of Cook, Illinois, General Obligation Bonds, Series 1992A, 11/02 at 102 Aaa 9,058,817 6.600%, 11/15/22 (Pre-refunded to 11/15/02) Metropolitan Pier and Exposition Authority (Illinois), McCormick Place Expansion Project Bonds, Series 1992A: 2,205,000 6.500%, 6/15/22 (Pre-refunded to 6/15/03) 6/03 at 102 Aaa 2,480,868 45,000 6.500%, 6/15/22 6/03 at 102 A+ 48,827 5,000,000 Regional Transportation Authority (Cook, DuPage, Kane, Lake, McHenry and 6/03 at 102 Aaa 5,222,700 Will Counties in Illinois), General Obligation Bonds, Series 1993A, 5.800%, 6/01/13 Principal Optional Call Market Amount Description Provisions* Ratings** Value INDIANA - 5.9% $10,000,000 Indiana Educational Facilities Authority, Educational Facilities Refunding 1/02 at 102 Aaa $10,952,900 Revenue Bonds (Butler University Project), Series 1992A, 6.600%, 1/01/18 2,005,000 Howard County Jail and Juvenile Detention Center Corporation (Indiana), 1/02 at 102 A1 2,233,831 First Mortgage Revenue Bonds, Series 1992, 6.850%, 1/01/12 (Pre-refunded to 1/01/02) 2,400,000 Westfield-Washington South School Building Corporation (Indiana), First 7/02 at 102 A 2,667,048 Mortgage Revenue Bonds (Series 1992), 6.500%, 7/15/13 (Pre-refunded to 7/15/02) - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 2.4% Kentucky Housing Corporation, Housing Revenue Bonds (Federally Insured or Guaranteed Mortgage Loans), Series 1992A: 4,455,000 6.600%, 7/01/11 7/02 at 102 Aaa 4,697,040 1,735,000 6.700%, 7/01/17 7/02 at 102 Aaa 1,823,988 - ------------------------------------------------------------------------------------------------------------------------------------ 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) 11/02 at 102 A1 2,903,908 8,835,000 6.625%, 11/15/21 11/02 at 102 A1 9,693,585 - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 2.7% 3,000,000 Massachusetts Health and Educational Facilities Revenue Bonds (Jordan 10/02 at 102 A- 3,251,460 Memorial Hospital Issue), Series 1992C, 6.875%, 10/01/22 Massachusetts State General Obligation Refunding Bonds, Series 1991-B: 2,045,000 6.500%, 8/01/11 (Pre-refunded to 8/01/01) 8/01 at 102 AAA 2,245,921 1,585,000 6.500%, 8/01/11 8/01 at 102 A1 1,723,909 - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 1.6% 3,565,000 City of Royal Oak (Michigan), Hospital Finance Authority, Revenue Bonds 1/02 at 102 AA 3,847,633 (Beaumont Properties, Inc.), Series 1992E, 6.625%, 1/01/19 435,000 Royal Oak Hospital Finance Authority Revenue Bonds Series 1992-E (Beaumount 1/02 at 102 Aaa 481,419 Properties Inc), 6.625%, 1/01/19 (Pre-refunded to 1/01/02) - ------------------------------------------------------------------------------------------------------------------------------------ MONTANA - 0.8% 2,065,000 City of Billings, Montana, Tax Increment Urban Renewal Bonds, Refunding 3/02 at 101 Baa 2,245,543 Series 1992, 7.100%, 3/01/08 - ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 0.2% 500,000 Clark County, Nevada, General Obligation (Limited Tax), Las Vegas 7/06 at 101 Aaa 505,220 Convention and Visitors Authority Bonds, Series September 1, 1996, 5.500%, 7/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 11.0% 2,695,000 Dormitory Authority of the State of New York, State University Educational 5/00 at 102 Aaa 2,956,415 Facilities, Revenue Bonds, Series 1989B, 7.250%, 5/15/15 (Pre-refunded to 5/15/00) 4,000,000 New York State Medical Care Facilities Finance Agency, New York Hospital 2/05 at 102 Aaa 4,498,480 FHA-Insured Mortgage Revenue Bonds, 1994 Series A (AMBAC Insured Series), 6.750%, 8/15/14 Principal Optional Call Market Amount Description Provisions* Ratings** Value NEW YORK - continued $3,850,000 Metropolitan Transportation Authority (New York), Transit Facilities 7/02 at 100 Baa1 $ 3,972,969 Service Contract Bonds, Series N, 6.000%, 7/01/11 3,150,000 The City of New York (New York), General Obligation Bonds, Fiscal 1992 2/02 at 101 1/2 Baa1 3,457,094 Series H, 7.100%, 2/01/12 New York City General Obligation Bonds Fiscal 1992 Series H: 1,990,000 7.100%, 2/01/11 (Pre-refunded to 2/01/02) 2/02 at 101 1/2 Baa1 2,235,904 6,010,000 7.100%, 2/01/11 2/02 at 101 1/2 Baa1 6,595,915 5,000,000 Triborough Bridge and Tunnel Authority, Convention Center Project Bonds, No Opt. Call Baa1 5,919,200 Series E, 7.250%, 1/01/10 - ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 2.3% 2,800,000 County of Cuyahoga, Ohio, Hospital Revenue Bonds (Meridia Health System), 8/05 at 102 A1 2,997,820 Series 1995, 6.250%, 8/15/14 3,000,000 County of Erie, Ohio Hospital Improvement and Refunding Revenue Bonds, 1/02 at 102 A 3,248,430 Series 1992 (Firelands Community Hospital Project), 6.750%, 1/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 2.4% 6,000,000 Water and Sewer System Revenue Bonds, Series 1992A, Oklahoma City Water 7/02 at 100 Aaa 6,445,260 Utilities Trust, Oklahoma City, Oklahoma, 6.400%, 7/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 2.6% 6,295,000 Pennsylvania Intergovernmental Cooperation Authority, Special Tax Revenue 6/02 at 100 Aaa 6,968,691 Bonds (City of Philadelphia Funding Program), Series of 1992, 6.800%, 6/15/22 (Pre-refunded to 6/15/02) - ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 2.3% 5,500,000 Rhode Island Depositors Economic Corporation, Special Obligation Bonds, 8/02 at 102 Aaa 6,216,540 6.900%, 8/01/13 (Pre-refunded to 8/01/02) - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 2.8% 7,000,000 Richland County (South Carolina), Solid Waste Disposal Facilities Revenue 5/02 at 102 A1 7,581,630 Bonds (Union Camp Corporation Project), Series 1992-A, 6.750%, 5/01/22 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 5.3% 8,895,000 Tennessee Housing Development Agency, Homeownership Program Bonds, Issue WR, 7/02 at 102 AA 9,369,904 Series 1992, 6.800%, 7/01/17 4,500,000 Memphis-Shelby County Airport Authority (Tennessee), Special Facilities Revenue 9/01 at 103 BBB 5,065,965 Bonds, Series 1984 (Federal Express Corporation), 7.875%, 9/01/09 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS- 7.8% 3,275,000 Bexar County (Texas), Health Facilities Development Corporation, Hospital 8/04 at 102 Aaa 3,798,804 Revenue Bonds (Baptist Memorial Hospital System Project), Series 1994, 6.900%, 2/15/14 (Pre-refunded to 8/15/04) 4,805,000 Cleveland Housing Corporation (Texas), Mortgage Revenue Refunding Bonds, 1/01 at 102 Aaa 5,093,829 Series 1992-C (FHA Insured-Section 8), 7.375%, 7/01/24 2,500,000 Harris County Health Facilities Development Corporation, Texas Children's 10/05 at 102 Aaa 2,519,125 Hospital Project, Series 1995, 5.500%, 10/01/16 Principal Optional Call Market Amount Description Provisions* Ratings** Value TEXAS - continued $ 7,600,000 Port of Corpus Christi Authority of Nueces County (Texas), Pollution Control 4/02 at 102 A+ $ 8,238,628 Revenue Bonds (Hoechst Celanese Corporation), Series 1992, 6.875%, 4/01/17 (Alternative Minimum Tax) 1,460,000 Red River Authority (Texas), Pollution Control Revenue Bonds (Hoechst Celanese 4/02 at 102 A+ 1,585,633 Corporation), Series 1992, 6.875%, 4/01/17 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 1.2% 1,370,000 Utah Housing Finance Agency, Single Family Mortgage Purchase Refunding 7/02 at 102 Aa1 1,450,981 Senior Bonds, Series 1992, 6.800%, 1/01/12 1,655,000 Municipal Building Authority of Ogden City School District, Weber County, 1/02 at 101 Baa1 1,749,683 Utah, Lease Revenue Bonds (Central Middle School Project), Series 1992, 6.700%, 1/01/12 - ------------------------------------------------------------------------------------------------------------------------------------ VERMONT - 1.4% 3,600,000 Vermont Industrial Development Authority, Industrial Development Refunding 9/02 at 102 A 3,877,776 Revenue Bonds (Stanley Works Project), Series 1992, 6.750%, 9/01/10 - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.8% 2,000,000 Industrial Development Authority of Covington-Alleghany County, Virginia, 4/02 at 102 A- 2,218,500 Hospital Facility Revenue Bonds (Alleghany Regional Hospital), Series 1992, 6.625%, 4/01/12 (Pre-refunded to 4/01/02) - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 4.0% Washington Public Power Supply System, Nuclear Project No. 3, Refunding Revenue Bonds, Series 1991A: 3,600,000 6.750%, 7/01/11 (Pre-refunded to 7/01/01) 7/01 at 102 Aa1 3,972,312 6,160,000 6.500%, 7/01/18 (Pre-refunded to 7/01/01) 7/01 at 102 Aa1 6,744,214 - ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 0.7% 1,750,000 West Virginia School Building Authority Capital Improvement Revenue 7/02 at 102 A 1,950,462 Series 1992-A, 6.625%, 7/01/22 (Pre-refunded to 7/01/02) - ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 3.9% 10,000,000 Wisconsin Housing and Economic Development Authority, Multi-Family 4/02 at 102 A1 10,624,699 Housing Revenue Bonds, 1992 Series D, 7.200%, 11/01/13 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ $243,980,000 Total Investments - (cost $241,482,866) -98.4% 266,137,101 ============------------------------------------------------------------------------------------------------------------------------ Temporary Investments in Short-Term Municipal Securities - 0.3% $ 900,000 Regional Airports Improvement Corporation Facilities Sublease Revenue Bonds, Issue of A-1+ 900,000 ============ 1985, Lax Two Corporation (Los Angeles International Airport), Variable Rate Demand Bonds, 3.850%, 12/01/25+ ---------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.3% 3,522,295 ---------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $270,559,396 ====================================================================================================================== * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. + 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.
Portfolio of Investments Nuveen Select Tax-Free Income Portfolio 3 (NXR) (Unaudited)
Principal Optional Call Market Amount Description Provisions* Ratings** Value CALIFORNIA - 3.0% $ 3,000,000 State Public Works Board of the State of California Lease Revenue Bonds 11/04 at 102 Aaa $ 3,529,560 (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) 500,000 City of Fresno, California, Health Facility Revenue Refunding Bonds 12/03 at 102 Aaa 507,310 (Holy Cross Health System Corporation), 5.625%, 12/01/18 1,530,000 City of Torrance (California), Hospital Revenue Bonds (Little Company 7/02 at 102 A 1,658,489 of Mary Hospital Project), Series 1992, 6.875%, 7/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 6.9% 2,500,000 City of Colorado Springs, Colorado, Utilities System Refunding Revenue 11/02 at 100 AA 2,629,050 Bonds, Series 1992A, 6.125%, 11/15/20 1,500,000 City and County of Denver, Colorado, Airport System Revenue Bonds, No Opt. Call Baa1 1,872,450 Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax) 4,000,000 City and County of Denver, Colorado, Airport System Revenue Bonds, 11/02 at 102 Baa1 4,481,640 Series 1992B, 7.250%, 11/15/23 (Alternative Minimum Tax) 4,000,000 City and County of Denver, Colorado, Airport System Revenue Bonds, 11/02 at 102 Baa1 4,288,360 Series 1992C, 6.750%, 11/15/13 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.1% 250,000 Connecticut Health and Educational Authority Revenue Bonds, Bridgeport 7/02 at 102 Aaa 273,935 Hospital Issue, Series 1992-A, 6.625%, 7/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 3.5% 4,245,000 District of Columbia (Washington, D.C.), General Obligation Bonds, 6/03 at 102 Aaa 4,465,400 Series 1993 E, 6.000%, 6/01/13 2,000,000 District of Columbia Hospital Revenue Refunding Bonds (Washington 8/02 at 102 Baa1 2,265,700 Hospital Center), Series 1992-A, 7.125%, 8/15/19 (Pre-refunded to 8/15/02) - ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 2.3% 3,865,000 City of Tampa, Florida, Revenue Bonds (The Florida Aquarium Project), 5/02 at 102 N/R 4,434,856 Series 1992, 7.550%, 5/01/12 (Pre-refunded to 5/01/02) - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 2.4% Fulco Hospital Authority, Refunding Revenue Anticipation Certificates (Georgia Baptist Health Care System Project), Series 1992B: 2,250,000 6.250%, 9/01/13 (Pre-refunded to 9/01/02) 9/02 at 102 Baa1 2,478,555 2,000,000 6.375%, 9/01/22 (Pre-refunded to 9/01/02) 9/02 at 102 Baa1 2,214,140 - ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 14.2% 1,500,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992C No Opt. Call AA- 1,680,345 (Evangelical Hospitals Corporation), 6.250%, 4/15/22 4,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992B 9/02 at 102 Aaa 4,392,040 (Franciscan Sisters Health Care Corporation Project), 6.625%, 9/01/13 1,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992 10/02 at 102 Baa1 1,061,790 (Mercy Center for Health Care Services), 6.650%, 10/01/22 7,750,000 The Illinois State Toll Highway Authority, Toll Highway Priority 1/03 at 102 A1 8,263,050 Revenue Bonds, 1992 Series A, 6.375%, 1/01/15 Principal Optional Call Market Amount Description Provisions* Ratings** Value ILLINOIS - continued $ 3,000,000 Village of Bryant, Illinois, Pollution Control Revenue Refunding Bonds 2/02 at 102 Aa2 $ 3,192,000 (Central Illinois Light Company Project), Series 1992, 6.500%, 2/01/18 2,500,000 Chicago Metropolitan Housing Development Corporation (Illinois), Housing 7/02 at 102 AA 2,649,775 Development Revenue Refunding Bonds (FHA-Insured Mortgage Loans-Section 8 Assisted Projects), Series 1992A, 6.850%, 7/01/22 2,550,000 City of Chicago, Illinois, Mortgage Revenue Bonds, Series 1992 (FHA Insured 12/02 at 102 AAA 2,672,732 Mortgage Loan-Lakeview Towers Project), 6.600%, 12/01/20 1,700,000 City of Chicago, Chicago-O'Hare International Airport General Airport 1/03 at 102 Aaa 1,671,542 Second Lien Revenue Refunding Bonds, 5.600%, 1/01/18 (Alternative Minimum Tax) 1,360,000 Board of Regents of Sangamon State University (Illinois), Auxiliary 10/02 at 102 Aaa 1,510,076 Facilities System, Revenue Bonds, Series 1992, 6.375%, 10/01/17 (Pre-refunded to 10/01/02) - ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 5.4% 4,000,000 Indiana State Office Building Commission Correctional Facilities Program, 12/01 at 102 A1 4,258,560 Revenue Bonds, Series 1991, 6.375%, 7/01/16 1,205,000 Allen County, Indiana, Refunding Certificates of Participation, Series 1991, 5/02 at 101 Aa 1,301,159 6.500%, 11/01/17 2,000,000 School Building Corporation of Warren Township (Marion County, Indiana), 7/02 at 102 A 2,091,540 First Mortgage Bonds, Series 1992A, 6.000%, 7/15/12 2,725,000 Warrick County, Indiana, Adjustable Rate Environmental Improvement 5/03 at 102 AA 2,791,790 Revenue Bonds, 1993 Series B (Southern Indiana Gas and Electric Company Project), 6.000%, 5/01/23 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ KENTUCKY - 2.6% 500,000 County of Trimble, Kentucky, Pollution Control Revenue Bonds, 1990 Series B 9/02 at 102 Aaa 555,850 (Louisville Gas and Electric Company Project), 6.550%, 11/01/20 (Alternative Minimum Tax) (Pre-refunded to 9/16/02) 4,080,000 Trimble County, Kentucky, Pollution Control Revenue Bonds (Louisville Gas and 9/02 at 102 Aa2 4,408,277 Electric Company Project), Series 1990-B, 6.550%, 11/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 2.2% 4,000,000 Louisiana Public Facilities Authority, Revenue Bonds, Series 1992, 2/03 at 101 AA 4,317,120 Baton Rouge Water Works Company Project, 6.400%, 2/01/10 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 0.7% 1,270,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 11/02 at 102 Aaa 1,418,565 MetroWest Health, Inc. Issue, Series C, 6.500%, 11/15/18 (Pre-refunded to 11/15/02) - ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 6.7% 4,000,000 Michigan Housing Development Authority, Single Family Mortgage Revenue 6/06 at 102 AA+ 4,117,440 Series 1996-C, 5.950%, 12/01/17 8,240,000 Michigan Housing Development Authority, Limited Obligation Revenue Bonds 9/02 at 103 Aaa 8,684,218 (Greenwood Villa Project), Series 1992, 6.625%, 9/15/17 - ------------------------------------------------------------------------------------------------------------------------------------ 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) 7/02 at 102 A 2,047,002 1,000,000 6.250%, 7/01/22 (Alternative Minimum Tax) 7/02 at 102 A 1,031,490 Principal Optional Call Market Amount Description Provisions* Ratings** Value NEW YORK - 10.5% $2,130,000 Dormitory Authority of the State of New York, City University System No Opt. Call Baa1 $ 2,577,875 Consolidated, Second General Resolution Revenue Bonds, Series 1990C, 7.500%, 7/01/10 2,000,000 New York State Medical Care Facilities Finance Agency, Hospital and 8/02 at 102 AAA 2,140,080 Nursing Home FHA-Insured Mortgage Revenue Bonds, 1992 Series C (Mount Sinai Hospital), 6.250%, 8/15/12 1,060,000 The City of New York, New York, General Obligation Bonds, Fiscal 1992 2/02 at 101 1/2 Baa1 1,159,237 Series B, 7.000%, 2/01/18 New York City General Obligation Bonds Fiscal 1992 Series C-1: 60,000 7.000%, 8/01/17 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 67,973 1,690,000 7.000%, 8/01/17 8/02 at 101 1/2 Baa1 1,861,839 1,280,000 New York City General Obligation Bonds Fiscal 1993 Series D, 7.500%, 2/01/182/02 at 101 1/2 Aaa 1,460,966 (Pre-refunded to 2/01/02) 220,000 New York City General Obligation Bonds Fiscal 1992 Series D, 7.500%, 2/01/182/02 at 101 1/2 Baa1 246,404 New York City General Obligation Bonds, Fiscal 1991 Series B: 255,000 7.000%, 6/01/12 (Pre-refunded to 6/01/01) 6/01 at 101 1/2 Aaa 282,448 745,000 7.000%, 6/01/12 6/01 at 101 1/2 Baa1 806,515 New York City General Obligation Bonds Fiscal 1992 Series H: 500,000 7.100%, 2/01/11 (Pre-refunded to 2/01/02) 2/02 at 101 1/2 Baa1 561,785 1,500,000 7.100%, 2/01/11 2/02 at 101 1/2 Baa1 1,646,235 4,000,000 New York City Municipal Water Finance Authority, Water and Sewer Revenue Bonds, 6/02 at 101 1/2 A2 4,149,120 Fiscal 1993 Series A, 6.000%, 6/15/17 2,785,000 New York City Municipal Water Finance Authority (New York), Water and Sewer 6/02 at 101 A2 3,062,135 System Revenue Bonds, Fixed Rate Fiscal 1993 Series B Bonds, 6.375%, 6/15/22 (Pre-refunded to 6/15/02) - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 6.2% 2,000,000 Pennsylvania Higher Educational Facilities Authority, Revenue Bonds 5/03 at 102 A- 2,127,620 (Drexel University), Series 1993, 6.375%, 5/01/17 4,000,000 Pennsylvania Housing Finance Agency, Rental Housing Refunding Bonds, 7/02 at 102 Aaa 4,195,080 Issue of 1992 (FNMA Insured Mortgage Loans), 6.500%, 7/01/23 2,500,000 Cambria County Hospital Development Authority (Pennsylvania), Hospital 7/02 at 102 AAA 2,715,275 Revenue Refunding and Improvement Bonds, Series B of 1992 (Conemaugh Valley Memorial Hospital Project), 6.375%, 7/01/18 2,435,000 Dauphin County, Pennsylvania, Industrial Development Authority, Water No Opt. Call A 2,866,263 Development Refunding Revenue Bonds, Series 1992B (Dauphin Consolidated Water Supply Company), 6.700%, 6/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 3.1% 4,000,000 South Carolina Public Service Authority Revenue Bonds, 1992 Refunding 7/02 at 102 Aa2 4,303,560 Series A, 6.375%, 7/01/11 310,000 City of Spartanburg, South Carolina, Water System Improvement Refunding Revenue 6/02 at 101 AA- 327,732 Bonds, Series 1992, 6.250%, 6/01/17 1,290,000 Spartanburg Water System Improvement Revenue Refunding Bonds, Series 1992, 6/02 at 101 Aaa 1,407,880 6.250%, 6/01/17 (Pre-refunded to 6/01/02) Principal Optional Call Market Amount Description Provisions* Ratings** Value SOUTH DAKOTA - 2.2% $4,000,000 South Dakota Health and Educational Facilities Authority, Revenue Bonds, 9/02 at 102 Aaa $ 4,173,440 Series 1992 (Rapid City Regional Hospital Issue), 6.150%, 9/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 2.5% 4,420,000 Memphis-Shelby County Airport Authority (Tennessee), Special Facilities Revenue 9/02 at 102 BBB 4,838,574 Refunding Bonds, Series 1992 (Federal Express Corporation), 6.750%, 9/01/12 - ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 6.1% 3,755,000 Grand Prairie Industrial Development Authority, Industrial Development Revenue 12/02 at 102 A 4,016,123 Refunding Bonds, Series 1992 (Baxter International Inc. Project), 6.550%, 12/01/12 2,500,000 Harris County Health Facilities (Texas), Development Corporation Hospital 10/04 at 101 Aaa 2,689,550 Revenue Bonds (Hermann Hospital), Series 1994, 6.375%, 10/01/17 5,000,000 North Central Texas Health Facilities Development Corporation, Hospital Revenue 5/06 at 102 AA 5,003,700 Refunding Bonds, Series 1995 (Baylor Health Care System), 5.250%, 5/15/16 - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 2.2% 4,000,000 Virginia Housing Development Authority, Commonwealth Mortgage Bonds, 1/02 at 102 Aa1 4,230,880 1992 Series A, 7.100%, 1/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 9.9% 5,840,000 State of Washington, Certificates of Participation, Series 1991-A, 4/01 at 102 AA- 6,049,831 State Office Building Project, 6.000%, 4/01/12 4,000,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding 7/02 at 102 Aa1 4,442,400 Revenue Bonds, Series 1992A, 6.500%, 7/01/15 (Pre-refunded to 7/01/02) 4,000,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding 7/01 at 102 Aaa 4,430,880 Revenue Bonds, Series 1991A, 6.875%, 7/01/17 (Pre-refunded to 7/01/01) 4,000,000 Port of Seattle, Washington, Revenue Bonds, Series 1992B, 6.000%, 11/01/17 11/02 at 100 AA- 4,116,000 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 4.3% 2,250,000 West Virginia School Building Authority, Capital Improvement Revenue Bonds 7/02 at 102 A 2,486,071 Series 1992-A, 6.500%, 7/01/12 (Pre-refunded to 7/01/02) 2,500,000 Berkeley County Building Commission (West Virginia), Hospital Revenue 11/02 at 102 BBB+ 2,670,275 Bonds (City Hospital Project), Series 1992, 6.500%, 11/01/09 3,000,000 Mason County, West Virginia, Pollution Control Revenue Bonds (Appalachian Power 10/02 at 102 Baa1 3,202,620 Company Project), Series 1992-J, 6.600%, 10/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ $176,000,000 Total Investments - (cost $174,851,732) - 98.6% 189,532,172 ============------------------------------------------------------------------------------------------------------------------------ Principal Optional Call Market Amount Description Provisions* Ratings** Value Temporary Investments in Short-Term Municipal Securities - 0.3% $ 600,000 Wilmington Franciscan Health System (St. Francis Hospital), Variable Rate Demand VMIG-1 $ 600,000 =========== Bonds, 3.850%, 7/01/11+ - ------------------------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 1.1% 2,139,476 ---------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $192,271,648 ====================================================================================================================== * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. 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.
Portfolio of Investments Nuveen Insured California Select Tax-Free Income Portfolio (NXC) (Unaudited)
Principal Optional Call Market Amount Description Provisions* Ratings** Value EDUCATIONAL FACILITIES - 2.3% $2,050,000 California Educational Facilities Authority, Refunding Revenue Bonds, 10/01 at 100 Aaa $ 2,122,037 Series 1992 (Loyola Marymount University), 6.000%, 10/01/14 - ------------------------------------------------------------------------------------------------------------------------------------ ESCROWED BONDS - 14.0% 3,310,000 Rio Linda Union School District (California), General Obligation Bonds, 8/02 at 102 Aaa 3,696,906 Series 1992-A, 6.375%, 8/01/17 (Pre-refunded to 8/01/02) 500,000 Rio Linda Union School District, General Obligation Bonds, Series 1992-A, 8/02 at 102 Aaa 555,725 6.250%, 8/01/15 (Pre-refunded to 8/01/02) 3,800,000 Sacramento Municipal Utility District (California), Electric Revenue Bonds, 8/02 at 102 Aaa 4,246,918 1992 Series B, 6.375%, 8/15/22 (Pre-refunded to 8/15/02) 4,000,000 County of San Diego (California), Certificates of Participation (1994 Inmate 8/04 at 102 Aaa 4,658,760 Reception Center and Cooling Plant Financing), 6.750%, 8/01/14 (Pre-refunded to 8/01/04) - ------------------------------------------------------------------------------------------------------------------------------------ GENERAL OBLIGATION BONDS - 4.5% 4,000,000 City of Oakland, Alameda County, California, General Obligation Bonds, 6/02 at 102 Aaa 4,199,680 Series 1992, 6.000%, 6/15/17 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE FACILITIES - 9.1% 1,000,000 California Health Facilities Financing Authority, Insured Hospital Revenue 3/01 at 102 Aaa 1,079,470 Bonds (Adventist Health System/West), 1991 Series B, 6.500%, 3/01/11 2,500,000 California Health Facilities Financing Authority, Insured Hospital Revenue 10/02 at 102 Aaa 2,728,325 Bonds (Scripps Memorial Hospitals), Series 1992A, 6.400%, 10/01/12 4,000,000 California Health Facilities Financing Authority, Insured Hospital Revenue 8/02 at 102 Aaa 4,277,960 Bonds (San Diego Hospital Association), Series 1992B, 6.125%, 8/01/11 500,000 California Statewide Communities Development Authority, Certificates of 8/03 at 102 Aaa 500,280 Participation (Sutter Health Obligated Group), Series 1993, 5.500%, 8/15/23 - ------------------------------------------------------------------------------------------------------------------------------------ LEASE RENTAL 15.2% 3,500,000 State Public Works Board of the State of California, Lease Revenue Bonds No Opt. Call Aaa 4,093,705 (Department of Corrections), 1991 Series A (State Prisons-Imperial County), 6.500%, 9/01/27 2,320,000 Brea Public Financing Authority (Orange County, California), 1991 Lease 7/00 at 102 Aaa 2,468,619 Revenue Bonds, Series A, 6.250%, 7/01/21 2,430,000 County of Los Angeles, Certificates of Participation (Edmund D. Edelman 4/02 at 102 Aaa 2,571,766 Children's Court and Petersen Museum Projects), 6.000%, 4/01/12 4,000,000 San Bernardino County, California, Certificates of Participation (1992 11/02 at 102 Aaa 4,173,000 West Valley Detention Center Refinancing Project), 6.000%, 11/01/18 1,000,000 Tulare County, California, Certificates of Participation (1992 Financing 11/02 at 102 Aaa 1,069,050 Project), Series A, 6.125%, 11/15/12 - ------------------------------------------------------------------------------------------------------------------------------------ OTHER REVENUE - 10.8% 4,000,000 The Community Redevelopment Agency of the City of Los Angeles, California, 7/02 at 102 Aaa 4,209,400 Hollywood Redevelopment Project, Tax Allocation Bonds, Series B, 6.100%, 7/01/22 1,500,000 Los Angeles County Metropolitan Transportation Authority (California), 7/03 at 102 Aaa 1,525,755 Proposition A, Sales Tax Revenue Refunding Bonds, Series 1993-A, 5.625%, 7/01/18 4,000,000 Walnut Public Financing Authority (Los Angeles County, California), 9/02 at 102 Aaa 4,415,480 1992 Tax Allocation Revenue Bonds (Walnut Improvement Project), 6.500%, 9/01/22 Principal Optional Call Market Amount Description Provisions* Ratings** Value TRANSPORTATION - 14.8% $ 3,675,000 Palm Springs Financing Authority, Palm Springs Regional Airport, Revenue 1/02 at 102 Aaa $ 3,858,860 Bonds, Series 1992, 6.000%, 1/01/12 (Alternative Minimum Tax) 3,750,000 Port of Oakland (California), Revenue Bonds, Series 1992-E, 11/02 at 102 Aaa 4,077,975 6.500%, 11/01/16 (Alternative Minimum Tax) 3,500,000 San Francisco Airports Commission, San Francisco International Airport, 5/02 at 102 Aaa 3,797,115 Second Series Refunding Revenue Bonds, Issue 1, 6.300%, 5/01/11 2,150,000 Airports Commission, City and County of San Francisco, California, 5/03 at 102 Aaa 2,261,241 San Francisco International Airport, Second Series Refunding Revenue Bonds, Issue 3 Bonds, 6.200%, 5/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 11.4% 3,450,000 M-S-R Public Power Agency (California), San Juan Project Revenue Bonds, 7/01 at 100 Aaa 3,558,089 Series 1991E, 6.000%, 7/01/22 2,430,000 Modesto Irrigation District, California, Certificates of Participation 10/01 at 100 Aaa 2,499,425 (Refunding and Capital Improvements Project), Series 1991A, 6.000%, 10/01/21 3,000,000 Northern California Power Agency, Hydroelectric Project Number One, 7/02 at 102 Aaa 3,251,880 Revenue Bonds, 1992 Refunding Series A, 6.250%, 7/01/12 1,225,000 Turlock Irrigation District (California), Revenue Refunding Bonds, No Opt. Call Aaa 1,396,488 Series 1992-A, 6.250%, 1/01/12 - ------------------------------------------------------------------------------------------------------------------------------------ WATER/SEWER FACILITIES - 16.6% 4,000,000 Eastern Municipal Water District (Riverside County, California), Water 7/01 at 101 Aaa 4,263,880 and Sewer Revenue Refunding Certificates of Participation, Series 1991A, 6.300%, 7/01/20 1,250,000 Fairfield-Suisun Sewer District (Solano County California), Sewer Revenue 5/01 at 102 Aaa 1,341,663 Refunding Bonds, Series 1991A, 6.250%, 5/01/16 4,000,000 City of Los Angeles, California, Wastewater System Revenue Bonds, 6/02 at 102 Aaa 4,312,560 Series 1992-B, 6.250%, 6/01/12 1,500,000 Modesto Irrigation District Financing Authority, Domestic Water Project 9/02 at 102 Aaa 1,582,364 Revenue Bonds, Series 1992A, 6.125%, 9/01/19 4,000,000 Walnut Valley Water District (California), Certificates of Participation 2/01 at 102 Aaa 4,164,480 (Badillo/Grand Transmission Project), Series 1992, 6.125%, 2/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ $86,340,000 Total Investments - (cost $85,635,731) - 98.7% 92,958,856 ===========------------------------------------------------------------------------------------------------------------------------- Temporary Investments in Short-Term Municipal Securities - 0.3% $ 300,000 Orange County Water District, Variable Rate Demand Bonds, 3.700%, 8/15/15+ A-1+ 300,000 ===========------------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.0% 978,882 ---------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $ 94,237,738 ====================================================================================================================== 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. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. + 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.
Portfolio of Investments Nuveen Insured New York Select Tax-Free Income Portfolio (NXN) (Unaudited)
Principal Optional Call Market Amount Description Provisions* Ratings** Value EDUCATIONAL FACILITIES - 23.0% $ 1,100,000 Dormitory Authority of the State of New York, Mount Sinai School of Medicine, 7/01 at 102 Aaa $ 1,207,514 Insured Revenue Bonds, Series 1991, 6.750%, 7/01/15 2,400,000 Dormitory Authority of the State of New York, Hamilton College, Insured 7/01 at 102 Aaa 2,614,032 Revenue Bonds, Series 1991, 6.500%, 7/01/21 570,000 Dormitory Authority of the State of New York, City University System No Opt. Call Aaa 712,967 Consolidated, Second General Resolution Revenue Bonds, Series 1990C, 7.500%, 7/01/10 2,050,000 Dormitory Authority of the State of New York, Ithaca College, Insured 7/01 at 102 Aaa 2,232,819 Revenue Bonds, Series 1991, 6.500%, 7/01/10 1,370,000 Dormitory Authority of the State of New York, Siena College, Insured 7/02 at 102 Aaa 1,451,597 Revenue Bonds, Series 1992, 6.000%, 7/01/11 2,250,000 Dormitory Authority of the State of New York, New York University, Insured 7/01 at 102 Aaa 2,420,033 Revenue Bonds, Series 1991, 6.250%, 7/01/09 2,500,000 Dormitory Authority of the State of New York, Marist College, Insured 7/02 at 102 Aaa 2,648,900 Revenue Bonds, Series 1992, 6.000%, 7/01/12 - ------------------------------------------------------------------------------------------------------------------------------------ ESCROWED BONDS - 19.0% 1,560,000 Dormitory Authority of the State of New York, Judicial Facilities Lease No Opt. Call Aaa 1,933,448 Revenue Bonds (Suffolk County Issue), Series 1986, 7.375%, 7/01/16 2,000,000 New York State Thruway Authority, Local Highway and Bridge Service 4/02 at 102 Aaa 2,161,600 Contract Bonds, Series 1992, 6.000%, 4/01/10 (Pre-refunded to 4/01/02) 3,500,000 Metropolitan Transportation Authority, Commuter Facilities Revenue Bonds, 7/02 at 102 Aaa 3,861,025 Series 1992B, 6.250%, 7/01/17 (Pre-refunded to 7/01/02) 2,250,000 Metropolitan Transportation Authority, Transit Facilities Revenue Bonds, 7/02 at 102 Aaa 2,494,080 Series J, 6.375%, 7/01/10 (Pre-refunded to 7/01/02) 485,000 Suffolk County Water Authority (New York), Waterworks Revenue Bonds, No Opt. Call AAA 527,636 Series 1986-V, 6.750%, 6/01/12 - ------------------------------------------------------------------------------------------------------------------------------------ GENERAL OBLIGATION BONDS - 11.6% 2,105,000 New York State Medical Care Facilities Finance Agency, Mental Health 2/02 at 102 Aaa 2,224,648 Services Facilities Improvement Revenue Bonds, 1992 Series B, 6.250%, 8/15/18 250,000 New York State Medical Care Facilities Finance Agency, Mental Health 8/02 at 102 Aaa 264,685 Services Facilities Improvement Revenue Bonds, 1992 Series D, 6.100%, 8/15/13 Town of Clarkstown Rickland County, New York, Various Purposes Serial Bonds-1992: 505,000 5.600%, 6/15/10 No Opt. Call Aaa 543,062 525,000 5.600%, 6/15/11 No Opt. Call Aaa 563,509 525,000 5.600%, 6/15/12 No Opt. Call Aaa 562,301 255,000 The City of New York (New York), General Obligation Bonds, Fiscal 1992 8/02 at 101 1/2 Aaa 273,582 Series C, 6.250%, 8/01/11 2,000,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series B, 8/04 at 101 Aaa 2,277,420 6.950%, 8/15/12 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE FACILITIES - 9.5% 2,500,000 New York State Medical Care Facilities Finance Agency, Hospital and 8/02 at 102 Aaa 2,670,600 Nursing Home FHA-Insured Mortgage Revenue Bonds, 1992 Series C (Mount Sinai Hospital), 6.250%, 8/15/12 2,500,000 New York State Medical Care Facilities Finance Agency, New York Hospital 2/05 at 102 Aaa 2,811,550 FHA-Insured Mortgage Revenue Bonds, 1994 Series A (AMBAC Insured Series), 6.750%, 8/15/14 Principal Optional Call Market Amount Description Provisions* Ratings** Value HOUSING FACILITIES - 4.9% $1,245,000 New York State Housing Finance Agency, Insured Multi-Family Housing 8/02 at 102 Aaa $ 1,306,777 Mortgage Revenue Bonds, Series 1992C (FHA Insured), 6.450%, 8/15/14 1,420,000 New Hartford Housing Development Corporation, Mortgage Revenue Refunding 7/02 at 100 Aaa 1,511,562 Bonds, Series 1992-A (Village Point Project-FHA Insured Mortgage Loan-Section 8 Assisted Project), 7.375%, 1/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ OTHER REVENUE - 6.5% 200,000 New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, 4/05 at 102 Aaa 197,814 Series 1995B, 5.125%, 4/01/15 1,000,000 New York City Industrial Development Agency, Civic Facility Revenue Bonds 11/04 at 102 Aaa 1,099,370 (USTA National Tennis Center Incorporated Project), 6.375%, 11/15/14 2,250,000 Triborough Bridge and Tunnel Authority, Special Obligation Refunding Bonds, 1/01 at 102 Aaa 2,439,765 Series 1991A, 6.625%, 1/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 7.3% 1,500,000 New York State Thruway Authority, General Revenue Bonds, Series 1992A, 1/02 at 100 Aaa 1,502,670 5.500%, 1/01/23 2,500,000 Port Authority of New York and New Jersey, Consolidated Revenue Bonds, 1/05 at 101 Aaa 2,721,625 Ninety-Seventh Series, 6.500%, 7/15/19 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 3.6% 1,945,000 New York State Power Authority, General Purpose Bonds, Series 1992 AA, 1/02 at 102 Aaa 2,076,969 6.250%, 1/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ WATER/SEWER FACILITIES -12.7% 1,250,000 New York City Municipal Water Finance Authority, Water and Sewer System 6/01 at 100 Aaa 1,322,100 Revenue Bonds, Fiscal 1992 Series A, 6.250%, 6/15/21 1,000,000 New York City Municipal Water Finance Authority, Water and Sewer System 6/02 at 101 1/2 Aaa 1,066,360 Revenue Bonds, Series 1992C, 6.200%, 6/15/21 4,900,000 New York City Municipal Water Finance Authority, Water and Sewer System 6/02 at 101 1/2 Aaa 5,019,903 Revenue Bonds, Fiscal 1993 Series A, 5.750%, 6/15/18 - ------------------------------------------------------------------------------------------------------------------------------------ $52,410,000 Total Investments - (cost $52,304,704) - 98.1% 56,721,923 ===========------------------------------------------------------------------------------------------------------------------------- Temporary Investments in Short-Term Municipal Securities - 0.9% $ 500,000 Babylon Industrial Development Agency (OFS Equity Project), Variable Rate Demand Bonds, A-1+ 500,000 =========== 3.850%, 12/01/24+ (Alternative Minimum Tax) ---------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.0% 588,234 ---------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $57,810,157 ====================================================================================================================== 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. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. + 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 September 30, 1997 (Unaudited)
NXP NXQ NXR Assets Investments in municipal securities, at market value (note 1) $251,874,882 $266,137,101 $189,532,172 Temporary investments in short-term municipal securities, at amortized cost, which approximates market value (note 1) -- 900,000 600,000 Cash 27,902 64,657 53,856 Receivables: Interest 5,153,808 4,729,987 3,124,559 Investments sold 70,000 228,769 -- Other assets 2,391 2,077 3,479 ------------ ------------ ------------ Total assets 257,128,983 272,062,591 193,314,066 ------------ ------------ ------------ Liabilities Accrued expenses: Surveillance and administration fees (note 6) 50,973 64,786 46,529 Other 154,410 135,486 101,365 Dividends payable 1,228,357 1,302,923 894,524 ------------ ------------ ------------ Total liabilities 1,433,740 1,503,195 1,042,418 ------------ ------------ ------------ Net assets (note 7) $255,695,243 $270,559,396 $192,271,648 ============ ============ ============ Shares outstanding 16,378,097 17,607,068 12,964,123 ============ ============ ============ Net asset value per share outstanding (net assets divided by shares outstanding) $ 15.61 $ 15.37 $ 14.83 ============ ============ ============
Statement of Net Assets September 30, 1997 (Unaudited)
NXC NXN Assets Investments in municipal securities, at market value (note 1) $92,958,856 $56,721,923 Temporary investments in short-term municipal securities, at amortized cost, which approximates market value (note 1) 300,000 500,000 Cash 14,219 88,413 Receivables: Interest 1,456,305 805,342 Investments sold -- -- Other assets 3,192 3,836 ----------- ----------- Total assets 94,732,572 58,119,514 ----------- ----------- Liabilities Accrued expenses: Surveillance and administration fees (note 6) 23,166 14,192 Other 52,444 41,206 Dividends payable 419,224 253,959 ----------- ----------- Total liabilities 494,834 309,357 ----------- ----------- Net assets (note 7) $94,237,738 $57,810,157 =========== =========== Shares outstanding 6,257,068 3,907,068 =========== =========== Net asset value per share outstanding (net assets divided by shares outstanding) $ 15.06 $ 14.80 =========== ===========
Statement of Operations Six months ended September 30, 1997 (Unaudited)
NXP NXQ NXR Investment Income Tax-exempt interest income (note 1) $ 7,868,661 $ 8,257,673 $ 5,717,449 ------------ ------------ ------------ Expenses Surveillance and administration fees (note 6) 308,446 391,871 280,627 Shareholders' servicing agent fees and expenses 27,608 26,279 18,915 Custodian's fees and expenses 25,172 25,666 22,419 Trustees' fees and expenses (note 6) 9,547 10,144 7,205 Professional fees 10,269 10,441 9,163 Shareholders' reports - printing and mailing expenses 48,132 50,454 36,445 Stock exchange listing fees 12,153 12,153 12,153 Investor relations expense 10,635 11,190 8,036 Other expenses 6,467 6,740 5,101 ------------ ------------ ------------ Total expenses 458,429 544,938 400,064 ------------ ------------ ------------ Net investment income 7,410,232 7,712,735 5,317,385 ------------ ------------ ------------ Realized and Unrealized Gain (Loss) from Investments Net realized gain (loss) from investment transactions (notes 1 and 4) (18,209) (20,904) -- Net change in unrealized appreciation or depreciation of investments 7,606,419 7,508,740 6,256,811 ------------ ------------ ------------ Net gain from investments 7,588,210 7,487,836 6,256,811 ------------ ------------ ------------ Net increase in net assets from operations $ 14,998,442 $ 15,200,571 $ 11,574,196 ============ ============ ============
Statement of Operations Six months ended September 30, 1997 (Unaudited)
NXC NXN Investment Income Tax-exempt interest income (note 1) $ 2,697,517 $ 1,664,354 ----------- ----------- Expenses Surveillance and administration fees (note 6) 139,543 85,530 Shareholders' servicing agent fees and expenses 7,191 4,857 Custodian's fees and expenses 16,616 14,931 Trustees' fees and expenses (note 6) 3,473 2,071 Professional fees 7,798 7,373 Shareholders' reports - printing and mailing expenses 16,980 13,045 Stock exchange listing fees 8,100 8,100 Investor relations expense 3,592 2,291 Other expenses 3,115 2,385 ----------- ----------- Total expenses 206,408 140,583 ----------- ----------- Net investment income 2,491,109 1,523,771 ----------- ----------- Realized and Unrealized Gain (Loss) from Investments Net realized gain (loss) from investment transactions (notes 1 and 4) -- (537) Net change in unrealized appreciation or depreciation of investments 3,367,618 2,028,921 ----------- ----------- Net gain from investments 3,367,618 2,028,384 ----------- ----------- Net increase in net assets from operations $ 5,858,727 $ 3,552,155 =========== ===========
Statement of Changes in Net Assets September 30, 1997 (Unaudited)
NXP NXQ Six months Year ended Six months Year ended ended 9/30/97 3/31/97 ended 9/30/97 3/31/97 Operations Net investment income $ 7,410,232 $ 14,787,904 $ 7,712,735 $ 15,445,555 Net realized gain (loss) from investment transactions (notes 1 and 4) (18,209) (38,357) (20,904) (70,141) Net change in unrealized appreciation or depreciation of investments 7,606,419 1,518,759 7,508,740 752,365 ------------ ------------ ------------ ------------ Net increase in net assets from operations 14,998,442 16,268,306 15,200,571 16,127,779 ------------ ------------ ------------ ------------ Distributions to shareholders from undistributed net investment income (note 1) (7,394,869) (15,035,095) (7,817,534) (15,719,586) ------------ ------------ ------------ ------------ Net increase in net assets 7,603,573 1,233,211 7,383,037 408,193 Net assets at beginning of period 248,091,670 246,858,459 263,176,359 262,768,166 ------------ ------------ ------------ ------------ Net assets at end of period $255,695,243 $248,091,670 $270,559,396 $263,176,359 ============ ============ ============ ============ Balance of undistributed net investment income at end of period $ 86,995 $ 71,632 $ 138,195 $ 242,994 ============ ============ ============ ============
Statement of Changes in Net Assets September 30, 1997 (Unaudited)
NXR NXC Six months Year ended Six months Year ended ended 9/30/97 3/31/97 ended 9/30/97 3/31/97 Operations Net investment income $ 5,317,385 $ 10,633,229 $ 2,491,109 $ 4,983,887 Net realized gain (loss) from investment transactions (notes 1 and 4) -- (678,107) -- -- Net change in unrealized appreciation or depreciation of investments 6,256,811 2,418,261 3,367,618 718,256 ------------ ------------ ------------ ------------ Net increase in net assets from operations 11,574,196 12,373,383 5,858,727 5,702,143 ------------ ------------ ------------ ------------ Distributions to shareholders from undistributed net investment income (note 1) (5,367,144) (10,773,186) (2,515,341) (5,030,683) ------------ ------------ ------------ ------------ Net increase in net assets 6,207,052 1,600,197 3,343,386 671,460 Net assets at beginning of period 186,064,596 184,464,399 90,894,352 90,222,892 ------------ ------------ ------------ ------------ Net assets at end of period $192,271,648 $186,064,596 $ 94,237,738 $ 90,894,352 ============ ============ ============ ============ Balance of undistributed net investment income at end of period $ 74,721 $ 124,480 $ 27,881 $ 52,113 ============ ============ ============ ============
Statement of Changes in Net Assets September 30, 1997 (Unaudited)
NXN Six months Year ended ended 9/30/97 3/31/97 Operations Net investment income $ 1,523,771 $ 3,040,417 Net realized gain (loss) from investment transactions (notes 1 and 4) (537) (918) Net change in unrealized appreciation or depreciation of investments 2,028,921 107,862 ------------ ------------ Net increase in net assets from operations 3,552,155 3,147,361 ------------ ------------ Distributions to shareholders from undistributed net investment income (note 1) (1,523,757) (3,047,516) ------------ ------------ Net increase in net assets 2,028,398 99,845 Net assets at beginning of period 55,781,759 55,681,914 ------------ ------------ Net assets at end of period $ 57,810,157 $ 55,781,759 ============ ============ Balance of undistributed net investment income at end of period $ 82,657 $ 82,643 ============ ============
NOTES TO FINANCIAL STATEMENTS (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES 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 investment portfolio are provided by a pricing service approved by the Trust'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 valued at amortized cost, which approximates market value. SECURITIES TRANSACTIONS Securities transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined on the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may have extended settlement periods. The securities so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets in a separate account with a current value at least equal to the amount of their when-issued and delayed delivery purchase commitments. At September 30, 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 Each Trust is a separate taxpayer for federal income tax purposes. Each Trust intends to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its 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 of the Trusts. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Tax-exempt net investment income is declared as a dividend monthly and payment is made or reinvestment is credited to shareholder accounts on the first business day after month-end. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss 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 INSTRUMENTS The Trusts are not authorized to invest in transactions in certain derivative financial instruments including futures, forward, swap, option contracts, and other financial instruments with similar characteristics, and therefore made no such purchases during the six months ended September 30, 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. FUND SHARES There were no share transactions during the six months ended September 30, 1997, nor during the fiscal year ended March 31, 1997, in any of the Trusts. 3. DISTRIBUTIONS TO SHAREHOLDERS On October 1, 1997, the Trusts declared Common share dividend distributions from their tax-exempt net investment income which were paid November 3, 1997, to shareholders of record on October 15, 1997, as follows:
NXP NXQ NXR Dividends per share $.0750 $.0740 $.0690 ====== ====== ====== NXC NXN Dividends per share $.0670 $.0650 ====== ======
4. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in municipal securities and temporary municipal investments during the six months ended September 30, 1997, were as follows:
NXP NXQ NXR Purchases: Investments in municipal securities $2,845,000 $ 494,130 $ -- Temporary municipal investments 1,200,000 2,600,000 1,400,000 Sales and Maturities: Investments in municipal securities 2,603,200 1,261,960 175,000 Temporary municipal investments 1,400,000 2,100,000 1,200,000 ========== ========== ========== NXC NXN Purchases: Investments in municipal securities $ -- $ -- Temporary municipal investments 400,000 700,000 Sales and Maturities: Investments in municipal securities -- 10,000 Temporary municipal investments 400,000 700,000 ======== ========
At September 30, 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 Trusts' last fiscal year end, the 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 Expiration year: 2001 $ -- $ -- $ 200,114 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 ======== ======= ========== NXC NXN Expiration year: 2001 $298,108 $618,333 2002 -- 432 2003 -- 1,954 2004 -- 321,550 2005 -- 1,480 -------- -------- Total $298,108 $943,749 ======== ========
5. UNREALIZED APPRECIATION (DEPRECIATION) Gross unrealized appreciation and gross unrealized depreciation of investments at September 30, 1997, were as follows:
NXP NXQ NXR Gross unrealized: appreciation $28,004,044 $24,654,235 $14,680,440 depreciation -- -- -- ----------- ----------- ----------- Net unrealized appreciation $28,004,044 $24,654,235 $14,680,440 =========== =========== =========== NXC NXN Gross unrealized: appreciation $ 7,323,125 $ 4,417,219 depreciation -- -- ----------- ----------- Net unrealized appreciation $ 7,323,125 $ 4,417,219 =========== ===========
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 September 30, 1997, each Trust had an unlimited number of $.01 par value shares of beneficial interest authorized. Net assets consisted of:
NXP NXQ NXR Capital paid-in $ 163,781 $ 176,071 $ 129,641 Paid-in surplus 227,626,767 245,681,943 178,450,447 Balance of undistributed net investment income 86,995 138,195 74,721 Accumulated net realized gain (loss) from investment transactions (186,344) (91,048) (1,063,601) Net unrealized appreciation of investments 28,004,044 24,654,235 14,680,440 ------------- ------------- ------------- Net assets $ 255,695,243 $ 270,559,396 $ 192,271,648 ============= ============= ============= NXC NXN Capital paid-in $ 62,571 $ 39,071 Paid-in surplus 87,122,269 54,215,788 Balance of undistributed net investment income 27,881 82,657 Accumulated net realized gain (loss) from investment transactions (298,108) (944,578) Net unrealized appreciation of investments 7,323,125 4,417,219 ------------- ------------ Net assets $ 94,237,738 $ 57,810,157 ============= ============
8. INVESTMENT COMPOSITION Each Trust invests in municipal securities which include general obligation, escrowed and revenue bonds. At September 30, 1997, the revenue sources by municipal purpose for these investments, expressed as a percent of total investments, were as follows:
NXP NXQ NXR NXC NXN Revenue Bonds: Educational Facilities 5% 11% 3% 2% 23% Housing Facilities 16 19 15 -- 15 Transportation 8 7 17 15 7 Water / Sewer Facilities 2 2 6 17 13 Health Care Facilities 9 10 15 9 -- Lease Rental Facilities 5 5 5 15 -- Utilities 1 -- 4 12 4 Pollution Control Facilities -- -- 7 -- -- Industrial Development 2 4 -- -- -- Other 3 3 1 11 7 General Obligation Bonds 7 11 7 5 12 Escrowed Bonds 42 28 20 14 19 ---- ---- ---- ---- ---- 100% 100% 100% 100% 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 (50% for NXP, 45% for NXQ, 36% 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 (Unaudited) Selected data for a share outstanding throughout each period is as follows:
Operating performance Net realized & Dividends Net asset Net unrealized from value invest- gain (loss) tax-exempt Distributions Portfolio beginning ment from invest- net investment from structuring of period income ments income capital gains fee NXP Six months ended 9/30/97 $15.15 $.45 $ .46 $(.45) $-- $-- Year ended 3/31: 1997 15.07 .90 .10 (.92) -- -- 1996 14.71 .91 .39 (.94) -- -- 1995 14.68 .91 .11 (.95) (.04) -- 1994 15.03 .91 (.31) (.95) -- -- 1993 13.92 .90 1.00 (.79) -- -- 3/19/92 to 3/31/92 14.23 .01 .01 -- -- (.21) NXQ Six months ended 9/30/97 14.95 .44 .42 (.44) -- -- Year ended 3/31: 1997 14.92 .88 .04 (.89) -- -- 1996 14.57 .88 .38 (.91) -- -- 1995 14.55 .89 .04 (.91) -- -- 1994 14.76 .88 (.18) (.91) -- -- 5/21/92 to 3/31/93 14.15 .71 .70 (.61) -- (.13) NXR Six months ended 9/30/97 14.35 .41 .48 (.41) -- -- Year ended 3/31: 1997 14.23 .82 .13 (.83) -- -- 1996 13.90 .83 .34 (.84) -- -- 1995 13.83 .80 .11 (.84) -- -- 1994 14.27 .82 (.42) (.84) -- -- 7/24/92 to 3/31/93 14.15 .52 .27 (.42) -- (.13) Total invest- ment Per share return Total Organization Net asset market value on return on and value end end of market net asset offering costs of period period value** value** NXP Six months ended 9/30/97 $-- $15.61 $15.4375 7.81% 6.08% Year ended 3/31: 1997 -- 15.15 14.7500 4.58 6.79 1996 -- 15.07 15.0000 9.14 8.97 1995 -- 14.71 14.6250 9.14 7.38 1994 -- 14.68 14.3750 .23 3.85 1993 -- 15.03 15.2500 7.38 13.98 3/19/92 to 3/31/92 (.12) 13.92 15.0000 -- (2.18) NXQ Six months ended 9/30/97 -- 15.37 15.2500 11.24 5.85 Year ended 3/31: 1997 -- 14.95 14.1250 .93 6.34 1996 -- 14.92 14.8750 13.02 8.79 1995 -- 14.57 14.0000 8.84 6.74 1994 -- 14.55 13.7500 (.94) 4.63 5/21/92 to 3/31/93 (.06) 14.76 14.7500 2.59 8.60 NXR Six months ended 9/30/97 -- 14.83 14.3125 11.25 6.30 Year ended 3/31: 1997 -- 14.35 13.2500 3.30 6.85 1996 -- 14.23 13.6250 11.41 8.56 1995 -- 13.90 13.0000 2.82 6.97 1994 -- 13.83 13.5000 1.37 2.64 7/24/92 to 3/31/93 (.12) 14.27 14.1250 (2.91) 3.82 Ratios/Supplemental data Ratio of net Net assets Ratio of investment end of expenses income Portfolio period (in to average to average turnover thousands) net assets net assets rate NXP Six months ended 9/30/97 $255,695 .36%* 5.85%* 1% Year ended 3/31: 1997 248,092 .39 5.97 1 1996 246,858 .36 6.02 1 1995 240,890 .37 6.32 17 1994 240,398 .38 5.90 10 1993 246,166 .27+ 6.23 1 3/19/92 to 3/31/92 212,430 .39* 3.64* -- NXQ Six months ended 9/30/97 270,559 .41* 5.76* -- Year ended 3/31: 1997 263,176 .42 5.86 2 1996 262,768 .42 5.89 1 1995 256,548 .41 6.22 12 1994 256,098 .41 5.79 1 5/21/92 to 3/31/93 259,876 .42* 5.93* 6 NXR Six months ended 9/30/97 192,272 .42* 5.60* -- Year ended 3/31: 1997 186,065 .44 5.74 5 1996 184,464 .44 5.79 4 1995 180,226 .51 6.09 7 1994 89,988 .48 5.60 8 7/24/92 to 3/31/93 92,845 .49* 5.65* 18 See notes on page 46.
Financial Highlights - continued (Unaudited) Selected data for a share outstanding throughout each period is as follows:
Operating performance Net realized & Dividends Net asset Net unrealized from value invest- gain (loss) tax-exempt Distributions Portfolio beginning ment from invest- net investment from structuring of period income ments income capital gains fee NXC Six months ended 9/30/97 $14.53 $.40 $ .53 $(.40) $-- $-- Year ended 3/31: 1997 14.42 .80 .11 (.80) -- -- 1996 14.16 .80 .27 (.81) -- -- 1995 13.92 .80 .26 (.82) -- -- 1994 14.53 .79 (.58) (.82) -- -- 6/19/92 to 3/31/93 14.15 .56 .52 (.48) -- (.14) NXN Six months ended 9/30/97 14.28 .39 .52 (.39) -- -- Year ended 3/31: 1997 14.25 .78 .03 (.78) -- -- 1996 14.04 .78 .21 (.78) -- -- 1995 13.86 .77 .19 (.78) -- -- 1994 14.37 .76 (.49) (.78) -- -- 6/19/92 to 3/31/93 14.15 .52 .43 (.47) -- (.13) Total invest- ment Per share return Total Organization Net asset market value on return on and value end end of market net asset offering costs of period period value** value** NXC Six months ended 9/30/97 $-- $15.06 $14.7500 9.31% 6.48% Year ended 3/31: 1997 -- 14.53 13.8750 3.06 6.46 1996 -- 14.42 14.2500 9.80 7.67 1995 -- 14.16 13.7500 4.47 7.97 1994 -- 13.92 14.0000 (.51) 1.19 6/19/92 to 3/31/93 (.08) 14.53 14.8750 2.39 6.21 NXN Six months ended 9/30/97 -- 14.80 14.7500 13.34 6.44 Year ended 3/31: 1997 -- 14.28 13.3750 4.91 5.79 1996 -- 14.25 13.5000 8.94 7.13 1995 -- 14.04 13.1250 3.43 7.28 1994 -- 13.86 13.5000 (2.54) 1.68 6/19/92 to 3/31/93 (.13) 14.37 14.6250 .74 5.01 Ratios/Supplemental data Ratio of net Net assets Ratio of investment end of expenses income Portfolio period (in to average to average turnover thousands) net assets net assets rate NXC Six months ended 9/30/97 $94,238 .44%* 5.35%* --% Year ended 3/31: 1997 90,894 .45 5.47 -- 1996 90,223 .44 5.50 -- 1995 88,586 .48 5.77 7 1994 87,116 .47 5.27 -- 6/19/92 to 3/31/93 90,898 .55* 5.29* 17 NXN Six months ended 9/30/97 57,810 .49* 5.34* -- Year ended 3/31: 1997 55,782 .51 5.42 -- 1996 55,682 .48 5.44 -- 1995 54,855 .57 5.63 14 1994 54,159 .54 5.14 -- 6/19/92 to 3/31/93 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. Total returns are not annualized. + Surveillance and Administration fees commenced October 1, 1992.
FUND INFORMATION BOARD OF TRUSTEES James E. Bacon Anthony T. Dean William T. Kissick Thomas E. Leafstrand Timothy R. Schwertfeger Sheila W. Wellington FUND MANAGER Nuveen Institutional Advisory Corp. 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN The Chase Manhattan Bank 4 New York Plaza New York, NY 10004-2413 (800) 257-8787 LEGAL COUNSEL Fried, Frank, Harris, Shriver & Jacobson Washington, D.C. INDEPENDENT AUDITORS Ernst & Young LLP Chicago, Illinois Serving Investors for Generations Photo of: John Nuveen, Sr. Since our founding in 1898, John Nuveen & Co. has been synonymous with investments that withstand the test of time. Today, we offer a broad range of investments designed for investors whose portfolios are the principal source of their ongoing financial security. More than 1.3 million investors have trusted Nuveen to help them maintain the lifestyle they currently enjoy. The cornerstone of Nuveen's investment philosophy is a commitment to disciplined long-term investment strategies whose aim is to provide consistent, attractive performance over time -- with moderated risk. We emphasize quality securities carefully chosen through in-depth research, and we follow those securities closely over time to help ensure that they continue to meet our exacting standards. Whether your focus is long-term growth, dependable current income or preservation of capital, Nuveen offers a wide array of equity and fixed-income mutual funds, unit trusts, exchange-traded funds, individual managed account services, and cash management products, including many that generate tax-free income. To find out more about how Nuveen investment products and services can help you preserve your financial security, talk with your financial adviser, or call us at (800) 257-8787 for more information, including a prospectus where applicable. Please read that information carefully before you invest. NUVEEN John Nuveen & Co. Incorporated 333 West Wacker Drive Chicago, IL 60606-1286 (800) 257-8787 www.nuveen.com PSA-1.9.97 -----END PRIVACY-ENHANCED MESSAGE-----