-----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, GI5StKHlNKSSLPaYf5GvlowyhDtZBzYri2OZff3t2UrjLyc3CuzzPJQ3/f1PixXG 9SOpZL/4bfC2IarWHSG0Dg== 0000891804-99-001196.txt : 19990604 0000891804-99-001196.hdr.sgml : 19990604 ACCESSION NUMBER: 0000891804-99-001196 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990603 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: 99639735 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 MARCH 31, 1999 ANNUAL REPORT DEPENDABLE, TAX-FREE INCOME TO HELP YOU KEEP MORE OF WHAT YOU EARN. NXP NXQ NXR NXC NXN Select Portfolios Photo of: Highlights As of March 31, 1999 CONTENTS 1 Dear Shareholder 3 Portfolio Manager Roundtable 5 NXP Performance Overview 6 NXQ Performance Overview 7 NXR Performance Overview 8 NXC Performance Overview 9 NXN Performance Overview 10 Shareholder Meeting Report 11 Portfolio of Investments 27 Statement of Net Assets 28 Statement of Operations 29 Statement of Changes in Net Assets 30 Notes to Financial Statements 34 Financial Highlights 36 Report of Independent Auditors 37 Fund Information CREDIT QUALITY PERFORMANCE HIGHLIGHTS NUVEEN SELECT TAX-FREE INCOME PORTFOLIO (NXP) o Taxable-Equivalent Yield of 7.97%* o Outperformed the total return performance of its Lipper Peer Group** o Stable tax-free dividend for 23 consecutive months Pie Chart: AAA/U.S. Guaranteed 57% AA 11% A 20% BBB/NR 12% NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2 (NXQ) o Taxable-Equivalent Yield of 7.94%* o Outperformed the total return performance of its Lipper Peer Group** o Stable tax-free dividend for 13 consecutive months Pie Chart: AAA/U.S. Guaranteed 63% AA 16% A 10% BBB/NR 11% NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3 (NXR) o Taxable-Equivalent Yield of 7.75%* o Outperformed the total return performance of its Lipper Peer Group** o Ranked in the upper 15% of its Lipper Peer Group Pie Chart: AAA/U.S. Guaranteed 52% AA 26% A 10% BBB/NR 12% NUVEEN INSURED CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO (NXC) o Taxable-Equivalent Yield of 8.05%* o Paralleled the total return performance of its Lipper Peer Group** o Stable tax-free dividend for 13 consecutive months Pie Chart: Insured 64% Insured and U.S. Guaranteed 36% NUVEEN INSURED NEW YORK SELECT TAX-FREE INCOME PORTFOLIO (NXN) o Taxable-Equivalent Yield of 8.00%* o Equaled the total return performance of its Lipper Peer Group** o Stable tax-free dividend for 72 consecutive months Pie Chart: Insured 57% Insured and U.S. Guaranteed 39% AAA/U.S. Guaranteed 4% * For investors in the 31% federal and applicable state income tax bracket. See your Fund's Performance Overview for more information. ** The Lipper Peer Group return represents the average annualized return of the funds in the appropriate Lipper Municipal Debt category. The Lipper total return assumes reinvestment of dividends and does not reflect any applicable sales charges. Photo of: TIMOTHY R. SCHWERTFEGER CHAIRMAN OF THE BOARD sidebar text: Wealth takes a lifetime to build. Once achieved, it should be preserved. DEAR SHAREHOLDER I'm pleased to report that over the past 12 months, the Nuveen Exchange-Traded Funds covered in this report continued to meet their primary objectives of providing you with dependable tax-free income and attractive levels of after-tax total returns. The combination of these two factors demonstrates once again that Nuveen's municipal bond funds can serve as excellent investment options for income-oriented investors. THE YEAR IN REVIEW The past 12 months saw the U.S. economy continue its pattern of non-inflationary growth, combined with low interest rates and unemployment levels that remain among the lowest in more than 30 years. Much of the current economic growth is propelled by consumer demand, which has helped the U.S. resist the downward pull of weaker overseas markets. All indications point to a confident consumer who is comfortable with the current state of the economy, especially the performance of the housing, stock, and job markets. On the global front, the turmoil of the past two years appears to be fading somewhat, as international financial markets have begun sending recovery signals. At the same time, inflation in the U.S. continued to operate at benign levels, with an increase of only 1.6% for the 12 months ended March 31, 1999. As Federal Reserve Chairman Alan Greenspan has recently stated, one of the key factors in achieving today's peaceful coexistence of economic growth and low inflation has been increased productivity. Improvements in productivity, spurred by technological advances, have been responsible for off-setting wage and other inflationary pressures that we would normally expect to see as part of a growing economy. Last fall, the Federal Reserve eased short-term interest rates for the first time in almost three years. Between the end of September and mid-November 1998, three successive cuts brought the federal funds rate to 4.75%, averting a potential domestic credit crunch and restoring some stability to global markets. Following the success of these preemptive moves, the Federal Reserve seemed to shift its inflation-fighting approach to a more reactive stance. Barring any unforeseen developments, expectations are for a stable Fed policy - and a stable interest rate environment - throughout the remainder of 1999. In the months ahead, we will continue to watch for indications from the Fed and other factors that affect the economy's future, including wage and employment statistics, reports on productivity growth, capital equipment spending, and the progress of international economic recovery. We believe these key components will influence the outlook for fixed-income markets well into the new millennium. MUNICIPAL BONDS: AN ATTRACTIVE INVESTMENT OPTION As interest rates declined over the past year, our municipal bond funds continued to provide bright spots among investment options, offering attractive, stable income in a market that places a high premium on yield. In 1998, municipal bonds represented a calm haven in otherwise turbulent markets, with lower volatility relative to Treasury bonds and other fixed-income investments. For the first three months of 1999, munis continued to outperform Treasuries and, in fact, were among the best performing asset classes for the quarter. The high ratio of tax-exempt municipal yields to Treasury yields sheltered municipal bonds from the price decline that occurred in the Treasury market during the first quarter of the year. While interest rates on 30-year Treasury bonds rose from 5.10% at the end of December to 5.63% as of March 31, 1999, the yield on the Bond Buyer Revenue Bond Index, an unmanaged index of long-term municipal revenue bonds, rose just three basis points - from 5.26% to 5.29%. Given the inverse relationship between interest rates and bond prices, as rates went up, prices went down. Though municipal bond prices also decreased, the drop was not as dramatic as it was for Treasuries. The differential in performance reflects the fact that Treasuries had become relatively expensive due to safe-haven buying during the international economic crises of the past year. The financial turmoil around the globe eventually subsided, and foreign investors began to shy away from U.S. denominated securities, which caused Treasuries to drop in price. At the end of March 1999, the ratio between long-term municipal yields and 30-year Treasury yields stood at 94%, compared with the more typical range of 86-87%. For investors, this meant that quality long-term municipal bonds offered almost the same yield as Treasury bonds with comparable maturities - - even before the tax advantages of municipal bonds are taken into account. On an after-tax basis in today's market, municipal bonds continue to present an exceptionally attractive investment option relative to Treasuries. In 1998, lower interest rates and the strong economy combined to generate high levels of new municipal issuance and a significant increase in the refinancing of existing bonds. Municipal issuance in 1998 reached $284 billion, up 29% over 1997. In terms of total municipal issuance, 1998 ranked as the second largest year on record, next to 1993's $292 billion. In the first quarter of 1999, however, as the market settled into a stable interest rate environment, refunding activity dropped off dramatically. As a result, municipal supply declined 30% from the levels of the first quarter of 1998. This, in turn, enhanced the attractiveness of the municipal bonds that were brought to market, as demand - especially from individual investors - remained relatively strong. The U.S. economy continues to benefit municipal issuers, as higher tax revenues produced improvements in the fundamental health of many municipalities. In 1998, for example, state tax revenues rose by an average of 6.9%. This expanded flow of tax dollars resulted in higher credit ratings for many municipal governments, as Moody's and Standard & Poor's - the two largest credit rating agencies upgraded 95 muni-cipal bond issues while downgrading only 47. The healthcare sector accounted for half of the downgraded issues, as improved projections regarding Medicare's solvency were countered by medical costs that outpaced inflation and continued pressure on hospitals from health insurers and the government. THE VALUE OF NUVEEN EXPERTISE The solid track record of a proven investment manager is one key to taking advantage of the attractive values currently available in the municipal market. The near-record level of municipal issuance in 1998, for example, highlighted the value of Nuveen's in-depth knowledge of the municipal market, as our portfolio management teams carefully analyzed each issue to select those securities best suited to help the funds achieve their investment objectives. With the outlook for tighter supply and continued demand in 1999, Nuveen's established market position ensures that we will have exceptional access to the bond offerings that have the potential to add value for our shareholders. As a further enhancement to our management capabilities, Nuveen has assembled a strong group of investment managers - experts in their particular areas of the market - to provide investors with the advantage of their experience and insights. In addition to Nuveen Advisory Services for tax-free investing, you and your financial adviser can rely on Institutional Capital Corporation for value-oriented equity investing and Rittenhouse Financial Services, Inc. for growth-oriented equity investing. We encourage you to talk with your financial adviser about Nuveen's expanding array of investments and the ways they can help you establish a diversified portfolio designed to build and sustain long-term financial security. For more information on our funds, contact your adviser for a prospectus, or call Nuveen at (800) 621-7227. Please read the prospectus carefully before you invest or send money. Thank you for the confidence you have placed in Nuveen. We are committed to maintaining the trust you have shown in us and look forward to meeting your investment needs well into the next century. Sincerely, TIMOTHY R. SCHWERTFEGER Chairman of the Board May 17, 1999 Sidebar text: "The solid track record of a proven investment manager is one key to taking advantage of the attractive values currently available in the municipal market." NUVEEN SELECT PORTFOLIOS PORTFOLIO MANAGER ROUNDTABLE PORTFOLIO MANAGERS MIKE DAVERN, STEVE PETERSON, AND TOM SPALDING DISCUSS THE CURRENT MUNICIPAL MARKET ENVIRONMENT, PORTFOLIO PERFORMANCE, AND THE OUTLOOK FOR THE NUVEEN SELECT PORTFOLIOS. MIKE, WHO JOINED NUVEEN IN 1991, HAS 16 YEARS OF EXPERIENCE AS AN INVESTMENT PROFESSIONAL AND HAS MANAGED THE CALIFORNIA SELECT PORTFOLIO SINCE JULY 1998. STEVE, AN 11-YEAR VETERAN OF NUVEEN WHO MANAGES A RANGE OF NEW YORK MUNICIPAL BOND FUNDS, ASSUMED MANAGEMENT RESPONSIBILITY FOR THE NEW YORK SELECT PORTFOLIO IN EARLY 1999. ALSO AT THAT TIME, TOM - WHO HAS 23 YEARS OF INVESTMENT EXPERIENCE AT NUVEEN - TOOK OVER MANAGEMENT OF THE NATIONAL SELECT PORTFOLIOS. WHAT FACTORS HAVE AFFECTED THE MUNICIPAL MARKET OVER THE PAST YEAR? Over the past 12 months, the U.S. economy continued to enjoy strong non-inflationary growth, low interest rates, and low unemployment. With tax revenues rising due to the growth in personal income, the national government is now generating a budget surplus. In this environment, long-term municipal bonds continued to outperform 30-year Treasury bonds, with yields that rivaled and even surpassed those offered by Treasuries. Over the past year, this municipal-to-Treasury ratio ranged as high as 104%, offering investors in quality long-term municipal bonds yields comparable to those of Treasury bonds, even before the tax advantage of municipals was taken into account. The other big story in the municipal market over the past year was the impressive supply of new issuance. In the fourth quarter of 1998, investors saw $25-30 billion in new bonds brought to market each month. Demand for municipal bonds also remained high, due to cash flow from non-traditional investors as well as from the traditional buyers of mutual and exchange-traded funds, such as individual investors and insurance companies. In the first quarter of 1999, however, the stable interest rate environment we have experienced since November 1998 led to fewer refundings and a 30% drop-off in new issue volume from first quarter 1998 levels. During this period, the continued demand from individual investors compensated for lower demand from insurance companies, which currently have fewer assets to invest due to heavy insurance premium price competition. In California and New York, the issuance of municipal bonds remained very heavy in 1998, while both states experienced tighter supply during the first quarter of 1999, which was in line with national trends. In both states, supply was met with exceptionally high demand, especially from individual investors who looked to tax-free municipal bonds for relief from high state taxes. For the remainder of 1999, if interest rates remain stable, we expect to see less refinancing volume and a continuation of the tighter supply scenario of the first quarter. Demand should also remain strong, as individual investors look to diversify their portfolios by reallocating profits from the equity market into fixed-income investments. These reallocation efforts will be expanded if the volatility in equities continues. Even with lower supply and high demand, Nuveen's position in the municipal market ensures that we will have access to the best offerings in the marketplace. HOW DID THE SELECT PORTFOLIOS PERFORM OVER THE PAST YEAR? For the 12 months ended March 31, 1999, the Nuveen Select Portfolios produced total returns on net asset value (NAV) ranging from 5.40% to 5.76%, providing taxable-equivalent returns of 8.09% to 8.85%, as shown in the accompanying table. For comparison purposes, the total returns for the portfolios' benchmarks - - the Lehman Brothers Municipal Bond Index and the Lehman California and New York Insured Municipal Bond indexes - and the averages for the appropriate Lipper Municipal Debt category are also provided. Over the past year, the Select Portfolios performed well within the range of what investors should expect from these portfolios, given their unique structure. LEHMAN LIPPER TOTAL RETURN ON NAV TOTAL RETURN1 AVERAGE2 1-YEAR ENDED TAXABLE- 1-YEAR ENDED 1-YEAR ENDED 3/31/99 EQUIVALENT3 3/31/99 3/31/99 - -------------------------------------------------------------------------------- NXP 5.43% 8.09% 6.20% 5.15% - -------------------------------------------------------------------------------- NXQ 5.63% 8.23% 6.20% 5.15% - -------------------------------------------------------------------------------- NXR 5.76% 8.29% 6.20% 5.15% - -------------------------------------------------------------------------------- NXC 5.65% 8.85% 6.98% 5.81% - -------------------------------------------------------------------------------- NXN 5.40% 8.35% 6.51% 5.39% - -------------------------------------------------------------------------------- HOW WERE THE PORTFOLIOS' DIVIDENDS AND SHARE PRICES AFFECTED? In the low interest rate environment of the past twelve months, good call protection helped support the dividends of NXP, NXQ, NXC, and NXN and shield the income of these portfolios from erosion. As of March 31, 1999, NXN had provided shareholders with 72 consecutive months of steady or increasing income, NXP had produced steady or increasing dividends for 23 consecutive months, and both NXC and NXQ had steady dividends for 13 months. During the past year, lower interest rates also led to an increase in the number of bond calls, as issuers sought to reduce debt financing costs. In addition, declining rates meant that proceeds from prepaid or matured bonds had to be reinvested in issues paying relatively lower current rates. Both of these situations contributed to a reduction in the income level of NXR and necessitated a dividend cut in November 1998. Even with this single dividend adjustment, all of the portfolios continued to provide attractive market yields that ranged from 5.03% to 5.50% as of March 31, 1999, providing taxable-equivalent yields of 7.29% to 7.97% for investors in the 31% federal income tax bracket. The addition of state taxes in California (combined rate of 37.5%) and New York (35.5%) boosted the taxable-equivalent yields to 8.05% and 8.00%, respectively, for shareholders in the state portfolios. 1 The three national Select Portfolios - NXP, NXQ, and NXR - are compared with the Lehman Brothers Municipal Bond Index, an unleveraged index comprising a broad range of investment-grade municipal bonds. The two state-specific portfolios, NXC and NXN, are compared with the Lehman Insured Municipal Bond indexes for California and New York, respectively. These are unleveraged indexes covering a broad range of insured municipal bonds within each of these states. Results for Lehman indexes do not reflect any initial or ongoing expenses. 2 The Lipper Peer Group returns represent the average annualized returns of the funds in the Lipper Municipal Debt category. The three national portfolios are compared with a peer group of unlev-eraged insured funds. Returns assume reinvestment of dividends and do not reflect any applicable sales charges. NXC is compared with other unleveraged insured California funds in the Lipper data base, while NXN is compared with unleveraged insured New York funds. 3 The taxable-equivalent total returns for the three national portfolios are based on a federal income tax rate of 31.0%, while returns for the California and New York portfolios are based on combined federal and state income tax rates of 37.5% and 35.5%, respectively. As interest rates declined over the past year, active demand for the Nuveen Select Portfolios - spurred by their outstanding dividend records - resulted in solid share price performance. At the same time, improvements in the portfolios' NAVs were somewhat constrained by the potential impact of upcoming bond calls. As a result, over the year, both NXQ and NXR moved from discounts (share price below NAV) to premiums (share price above NAV), while the other three portfolios saw their premiums widen.
SHARE PREMIUM/ TOTAL RETURN PRICE ($) NAV($) DISCOUNT TO NAV4 ON SHARE PRICE - ------------------------------------------------------------------------------------------------------------ 1-YEAR ENDED TAXABLE- 3/31/98 3/31/99 3/31/98 3/31/99 3/31/98 3/31/99 3/31/99 EQUIVALENT3 - ------------------------------------------------------------------------------------------------------------ NXP 15.875 16.375 15.62 15.55 1.63% 5.31% 9.02% 11.63% - ------------------------------------------------------------------------------------------------------------ NXQ 15.3125 15.875 15.43 15.41 -0.76% 3.02% 9.51% 12.13% - ------------------------------------------------------------------------------------------------------------ NXR 14.9375 15.25 14.96 14.98 -0.15% 1.80% 7.78% 10.31% - ------------------------------------------------------------------------------------------------------------ NXC 15.3125 15.75 15.21 15.26 0.67% 3.21% 8.22% 11.40% - ------------------------------------------------------------------------------------------------------------ NXN 15.00 15.125 14.91 14.92 0.60% 1.37% 6.14% 9.07% - ------------------------------------------------------------------------------------------------------------
For additional information, see the individual Performance Overview for your portfolio in this report. WHAT KEY STRATEGIES WERE USED TO MANAGE THE SELECT PORTFOLIOS DURING THE PAST YEAR? Established in 1992, the Select Portfolios are a uniquely structured group of investments designed as a source of dependable tax-free income with a set maturity schedule. Their fixed portfolio structure, defined life cycle, and emphasis on income stability make these five portfolios the ideal choice for investors who want the income and maturity of individual bonds enhanced by the ongoing surveillance and diversification provided by Nuveen. The focus of our management strategies over the past year continued to be on supporting stable tax-exempt dividends at the highest levels consistent with the portfolios' objectives. Buying and selling in these portfolios is carried out only when opportunities to enhance income, credit quality, or portfolio structure arise. During the past 12 months, the portfolios continued to meet the objectives set out at inception, so few adjustments were needed. In addition, the low interest rate environment of the past six months presented few opportunities to enhance the portfolios. Over the past year, the portfolios' short durations - ranging from 3.27 to 3.67 years - provided excellent protection from price volatility. During 1998, declining interest rates led to an increased number of pre-refundings. In a pre-refunding, a bond issue is essentially refunded prior to its first call or maturity and becomes secured by direct U.S. government or agency securities until it can be called by the issuer. When bonds are pre-refunded and backed by Treasury securities, the credit quality of the bond improves, resulting in price appreciation. Each of the Select Portfolios has a high percentage of pre-refunded bonds (denoted as U.S. guaranteed bonds in the portfolios' individual Portfolio Overviews) - 36% in NXC, 43% in NXN, and an average of 44% across the national portfolios - which should further enhance price stability and help maintain high credit quality. With virtually no scheduled bond calls in 1999 and 2000, the Select Portfolios currently offer outstanding call protection, which should provide additional stability for their dividends over the next two years. Beginning in 2001 and 2002, however, the portfolios - like most bonds issued in 1992 - will enter the normal part of the bond cycle in which bond calls are more likely to occur. This may require making some adjustments to the portfolios as we reinvest call proceeds in the most advantageous manner possible. To minimize the impact of these calls, we are already working on strategies for managing through this period. Overall, the credit quality of the national Select Portfolios remained high, with the portion of the portfolios invested in bonds rated AAA and AA ranging between 68% and 79%, as of March 31, 1999. Credit quality is not a major issue in the California and New York portfolios, which are 100% invested in insured or U.S. Guaranteed bonds. WHAT IS NUVEEN'S OUTLOOK FOR THE FUTURE? As we look ahead for the Select Portfolios, the most important thing to note is that these portfolios have performed exactly as they were designed to perform. The bonds that were originally selected in 1992 have achieved - and continue to achieve - their objectives. As a result, we do not anticipate making changes to the portfolios until the need arises to reinvest the proceeds of any bond calls. At that time, we plan to replace called bonds with securities that support the portfolios' goals through their liquidation date of 2017 in terms of maturity and call protection. Selecting the bonds that help the portfolios continue to meet their goals is an area where Nuveen's expertise - as an experienced investment manager knowledgeable about the unique aspects of the municipal market - can result in added value for our investors. In our opinion, municipal bonds are currently one of the most compelling values in the fixed-income investment marketplace. Over the past 12 months, the value of these quality investments has been enhanced by excellent municipal-to-Treasury ratios as well as a market environment characterized by low interest rates and benign inflation. With continued volatility in the equity markets and investors' increasing awareness of the need for asset allocation rebalancing, the demand for municipal bond funds is expected to grow. We believe that investors who take advantage of current opportunities in the municipal market should be rewarded with healthy returns and attractive yields in the months ahead. 3 The taxable-equivalent total returns for the three national portfolios are based on a federal income tax rate of 31.0%, while returns for the California and New York portfolios are based on combined federal and state income tax rates of 37.5% and 35.5%, respectively. 4 A fund's premium or discount represents the ratio of the fund's share price to its NAV. NUVEEN SELECT TAX-FREE INCOME PORTFOLIO PERFORMANCE OVERVIEW AS OF MARCH 31, 1999 NXP PORTFOLIO STATISTICS Inception Date 3/92 Share Price $16 3/8 Net Asset Value $15.55 Market Yield 5.50% Taxable-Equivalent Yield(1) 7.97% Fund Net Assets ($000) $254,635 Effective Maturity (Years) 11.45 Modified Duration (Years) 3.63 ANNUALIZED TOTAL RETURN ON SHARE PRICE ON NAV 1-Year 9.02% 5.43% 5-Year 9.13% 7.54% Since Inception 7.52% 7.55% TAXABLE-EQUIVALENT TOTAL RETURN(2) ON SHARE PRICE ON NAV 1-Year 11.63% 8.09% 5-Year 11.98% 10.37% Since Inception 10.31% 10.36% TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS) U.S. Guaranteed 44% Tax Obligation/Limited 10% Healthcare 9% Housing/Multifamily 8% Transportation 8% 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen fund on an after-tax basis. It is based on the current market yield and a federal income 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. Bar Chart: 1998-1999 MONTHLY TAX-FREE DIVIDENDS PER SHARE 4/98 0.075 5/98 0.075 6/98 0.075 7/98 0.075 8/98 0.075 9/98 0.075 10/98 0.075 11/98 0.075 12/98 0.075 1/99 0.075 2/99 0.075 3/99 0.075 Line Chart: SHARE PRICE PERFORMANCE 4/3/98 15.938 15.938 16.125 15.875 15.625 15.5 15.438 15.563 15.688 15.563 15.75 15.75 16 16.188 16.125 16 16 15.938 16 16.063 16.125 16.25 16.25 16.25 16.25 16.875 16.563 16.563 16.31 17 16.38 16.5 16.63 16.81 16.81 16.75 16.69 16.44 15.63 15.75 15.81 16.25 16.31 16.44 16.38 16.44 16.31 16.25 3/31/99 16.375 Weekly Closing Price Past performance is not predictive of future results. NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2 PERFORMANCE OVERVIEW AS OF MARCH 31, 1999 NXQ PORTFOLIO STATISTICS Inception Date 5/92 Share Price $15 7/8 Net Asset Value $15.41 Market Yield 5.48% Taxable-Equivalent Yield(1) 7.94% Fund Net Assets ($000) $271,240 Effective Maturity (Years) 10.44 Modified Duration (Years) 3.27 ANNUALIZED TOTAL RETURN ON SHARE PRICE ON NAV 1-Year 9.51% 5.63% 5-Year 9.30% 7.35% Since Inception 6.93% 7.31% TAXABLE-EQUIVALENT TOTAL RETURN(2) ON SHARE PRICE ON NAV 1-Year 12.13% 8.23% 5-Year 12.17% 10.12% Since Inception 9.70% 10.03% TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS) U.S. Guaranteed 48% Housing/Multifamily 9% Healthcare 8% Tax Obligation/Limited 7% Housing /Single Family 7% 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen fund on an after-tax basis. It is based on the current market yield and a federal income 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. Bar Chart: 1998-1999 MONTHLY TAX-FREE DIVIDENDS PER SHARE 4/98 0.0725 5/98 0.0725 6/98 0.0725 7/98 0.0725 8/98 0.0725 9/98 0.0725 10/98 0.0725 11/98 0.0725 12/98 0.0725 1/99 0.0725 2/99 0.0725 3/99 0.0725 Line Chart: SHARE PRICE PERFORMANCE 4/3/98 15.938 15.938 16.125 15.875 15.625 15.5 15.438 15.563 15.688 15.563 15.75 15.75 16 16.188 16.125 16 16 15.938 16 16.063 16.125 16.25 16.25 16.25 16.25 16.875 16.563 16.563 16.31 17 16.38 16.5 16.63 16.81 16.81 16.75 16.69 16.44 15.63 15.75 15.81 16.25 16.31 16.44 16.38 16.44 16.31 16.25 3/31/99 16.375 Weekly Closing Price Past performance is not predictive of future results. NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3 PERFORMANCE OVERVIEW AS OF MARCH 31, 1999 NXR PORTFOLIO STATISTICS Inception Date 7/92 Share Price $15 1/4 Net Asset Value $14.98 Market Yield 5.35% Taxable-Equivalent Yield(1) 7.75% Fund Net Assets ($000) $194,165 Effective Maturity (Years) 12.36 Modified Duration (Years) 3.64 ANNUALIZED TOTAL RETURN ON SHARE PRICE ON NAV 1-Year 7.78% 5.76% 5-Year 8.74% 7.65% Since Inception 6.21% 6.70% TAXABLE-EQUIVALENT TOTAL RETURN(2) ON SHARE PRICE ON NAV 1-Year 10.31% 8.29% 5-Year 11.57% 10.35% Since Inception 8.92% 9.34% TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS) U.S. Guaranteed 39% Transportation 11% Utilities 11% Housing/Multifamily 10% Healthcare 9% 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen fund on an after-tax basis. It is based on the current market yield and a federal income 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. Bar Chart: 1998-1999 MONTHLY TAX-FREE DIVIDENDS PER SHARE 4/98 0.069 5/98 0.069 6/98 0.069 7/98 0.069 8/98 0.069 9/98 0.069 10/98 0.069 11/98 0.068 12/98 0.068 1/99 0.068 2/99 0.068 3/99 0.068 Line Chart: SHARE PRICE PERFORMANCE 4/3/98 15.063 14.75 14.75 14.688 14.75 14.313 14.5 14.438 14.688 14.75 14.563 14.563 14.813 15.375 15.063 15.063 15.188 15.188 15.063 15.125 15.063 15.125 15.125 15.188 15.375 16 15.375 15.563 15.56 15.63 15.63 15.63 15.25 15.31 15.44 15.5 15.56 15.19 14.69 14.75 14.81 15.38 15.31 15.19 15.25 15.56 15.44 15.06 3/31/99 15.25 Weekly Closing Price Past performance is not predictive of future results. NUVEEN INSURED CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO PERFORMANCE OVERVIEW AS OF MARCH 31, 1999 NXC PORTFOLIO STATISTICS Inception Date 6/92 Share Price $15 3/4 Net Asset Value $15.26 Market Yield 5.03% Taxable-Equivalent Yield (Federal Only)(1) 7.29% Taxable-Equivalent Yield (Federal and State)(1)8.05% Fund Net Assets ($000) $95,501 Effective Maturity (Years) 12.24 Modified Duration (Years) 3.67 ANNUALIZED TOTAL RETURN ON SHARE PRICE ON NAV 1-Year 8.22% 5.65% 5-Year 8.29% 7.61% Since Inception 6.32% 6.69% TAXABLE-EQUIVALENT TOTAL RETURN(2) ON SHARE PRICE ON NAV 1-Year 11.40% 8.85% 5-Year 11.79% 11.04% Since Inception 9.68% 10.04% TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS) U.S. Guaranteed 36% Tax Obligation/Limited 18% Transportation 12% Utilities 11% Healthcare 8% 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen fund on an after-tax basis. The FEDERAL ONLY rate is based on the current market yield and a federal income tax rate of 31%. The rate shown for FEDERAL AND STATE highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 37.50%. 2 Taxable-equivalent total return is based on the annualized total return and a combined federal and state income tax rate of 37.50%. It represents the return on a taxable investment necessary to equal the return of the Nuveen fund on an after-tax basis. Bar Chart: 1998-1999 MONTHLY TAX-FREE DIVIDENDS PER SHARE 4/98 0.066 5/98 0.066 6/98 0.066 7/98 0.066 8/98 0.066 9/98 0.066 10/98 0.066 11/98 0.066 12/98 0.066 1/99 0.066 2/99 0.066 3/99 0.066 Line Chart: SHARE PRICE PERFORMANCE 4/3/98 15.25 15.438 15.063 15 15.188 15.063 14.875 15.063 15.125 15.25 14.938 15.125 15.125 15.125 15.063 15.063 15.063 15.063 15 15.438 15.563 15.563 15.5 15.5 15.875 15.938 15.813 16.063 15.75 15.81 15.63 15.94 15.88 15.88 15.88 16 15.94 15.69 15.25 15.13 15.19 15.38 15.5 15.44 15.5 15.75 15.81 15.69 3/31/99 15.75 Weekly Closing Price Past performance is not predictive of future results. NUVEEN INSURED NEW YORK SELECT TAX-FREE INCOME PORTFOLIO PERFORMANCE OVERVIEW AS OF MARCH 31, 1999 NXN PORTFOLIO STATISTICS Inception Date 6/92 Share Price $15 1/8 Net Asset Value $14.92 Market Yield 5.16% Taxable-Equivalent Yield (Federal Only)(1) 7.48% Taxable-Equivalent Yield (Federal and State)(1) 8.00% Fund Net Assets ($000) $58,303 Effective Maturity (Years) 11.37 Modified Duration (Years) 3.53 ANNUALIZED TOTAL RETURN ON SHARE PRICE ON NAV 1-Year 6.14% 5.40% 5-Year 8.19% 7.11% Since Inception 5.68% 6.22% TAXABLE-EQUIVALENT TOTAL RETURN(2) ON SHARE PRICE ON NAV 1-Year 9.07% 8.35% 5-Year 11.41% 10.20% Since Inception 8.75% 9.23% TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS) U.S. Guaranteed 43% Education and Civic Organizations 21% Water and Sewer 10% Housing/Multifamily 5% Transportation 5% 1 Taxable-equivalent yield represents the yield on a taxable investment necessary to equal the yield of the Nuveen fund on an after-tax basis. The FEDERAL ONLY rate is based on the current market yield and a federal income tax rate of 31%. The rate shown for FEDERAL AND STATE highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 35.50%. 2 Taxable-equivalent total return is based on the annualized total return and a combined federal and state income tax rate of 35.50%. It represents the return on a taxable investment necessary to equal the return of the Nuveen fund on an after-tax basis. Bar Chart: 1998-1999 MONTHLY TAX-FREE DIVIDENDS PER SHARE 4/98 0.065 5/98 0.065 6/98 0.065 7/98 0.065 8/98 0.065 9/98 0.065 10/98 0.065 11/98 0.065 12/98 0.065 1/99 0.065 2/99 0.065 3/99 0.065 Line Chart: SHARE PRICE PERFORMANCE 4/3/98 15.063 15.188 14.813 14.875 14.75 14.688 14.625 14.813 14.875 14.75 14.5 14.563 14.688 14.875 14.75 14.813 15 15.063 15.25 15.313 15 15.063 14.938 14.813 15.125 15.75 15.5 15.875 15.56 15.56 15.19 15.13 15.25 15.44 15.38 15.56 15.63 15.13 14.88 14.94 14.69 15.13 15.13 15.19 15 15.06 15.06 14.88 3/31/99 15.125 Weekly Closing Price Past performance is not predictive of future results. SHAREHOLDER MEETING REPORT
NXP NXQ NXR NXC NXN - ---------------------------------------------------------------------------------------------------------------------------------- APPROVAL OF THE TRUSTEE WAS REACHED AS FOLLOWS: Common Common Common Common Common Shares Shares Shares Shares Shares - ---------------------------------------------------------------------------------------------------------------------------------- James E. Bacon For 14,761,936 16,038,146 11,819,995 5,660,597 3,605,082 Withhold 124,809 91,953 69,512 23,034 26,450 - ---------------------------------------------------------------------------------------------------------------------------------- Total 14,886,745 16,130,099 11,889,507 5,683,631 3,631,532 - ---------------------------------------------------------------------------------------------------------------------------------- Anthony T. Dean For 14,768,473 16,040,001 11,824,356 5,665,189 3,605,782 Withhold 118,272 90,098 65,151 18,442 25,750 - ---------------------------------------------------------------------------------------------------------------------------------- Total 14,886,745 16,130,099 11,889,507 5,683,631 3,631,532 - ---------------------------------------------------------------------------------------------------------------------------------- William L. Kissick For 14,766,833 16,037,446 11,820,390 5,660,597 3,604,782 Withhold 119,912 92,653 69,117 23,034 26,750 - ---------------------------------------------------------------------------------------------------------------------------------- Total 14,886,745 16,130,099 11,889,507 5,683,631 3,631,532 - ---------------------------------------------------------------------------------------------------------------------------------- Thomas E. Leafstrand For 14,766,635 16,038,520 11,821,865 5,663,776 3,604,782 Withhold 120,110 91,579 67,642 19,855 26,750 - ---------------------------------------------------------------------------------------------------------------------------------- Total 14,886,745 16,130,099 11,889,507 5,683,631 3,631,532 - ---------------------------------------------------------------------------------------------------------------------------------- Timothy R. Schwertfeger For 14,766,181 16,033,616 11,819,826 5,663,951 3,605,782 Withhold 120,564 96,483 69,681 19,680 25,750 - ---------------------------------------------------------------------------------------------------------------------------------- Total 14,886,745 16,130,099 11,889,507 5,683,631 3,631,532 - ---------------------------------------------------------------------------------------------------------------------------------- Sheila W. Wellington For 14,760,434 16,032,418 11,822,290 5,664,538 3,604,482 Withhold 126,311 97,681 67,217 19,093 27,050 - ---------------------------------------------------------------------------------------------------------------------------------- Total 14,886,745 16,130,099 11,889,507 5,683,631 3,631,532 - ---------------------------------------------------------------------------------------------------------------------------------- RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS: For 14,724,344 16,033,616 11,771,756 5,641,889 3,597,976 Against 33,357 21,985 30,071 4,010 6,656 Abstain 129,044 74,498 87,680 37,732 26,900 - ---------------------------------------------------------------------------------------------------------------------------------- Total 14,886,745 16,130,099 11,889,507 5,683,631 3,631,532 - ----------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS NUVEEN SELECT TAX-FREE INCOME PORTFOLIO (NXP) MARCH 31, 1999
PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ---------------------------------------------------------------------------------------------------------------------------------- ALABAMA - 0.2% $ 535,000 Alabama Housing Finance Authority, Single Family Mortgage Revenue 4/04 at 102 Aaa $ 575,553 Bonds (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 2,699,375 (Baptist Medical Center/Parkway Village Project), Series 1992, 7.000%, 10/01/17 - ---------------------------------------------------------------------------------------------------------------------------------- CALIFORNIA - 6.5% 4,750,000 State Public Works Board of the State of California, Lease Revenue 3/04 at 102 Aaa 5,531,423 Bonds (California Community Colleges - Various Community College Projects), 1994 Series B, 7.000%, 3/01/14 (Pre-refunded to 3/01/04) 3,000,000 State Public Works Board of the State of California, Lease Revenue 11/04 at 102 Aaa 3,527,790 Bonds (Department of Corrections, California State Prison - Monterey County (Soledad II)), 1994 Series A, 6.875%, 11/01/14 (Pre-refunded to 11/01/04) 4,905,000 California Statewide Communities Development Authority, Revenue 8/02 at 102 A1 5,396,481 Certificates of Participation (Cedars-Sinai Medical Center), 6.500%, 8/01/15 2,000,000 Los Angeles County Metropolitan Transportation Authority (California), 7/03 at 102 AAA 2,088,580 Proposition A, Sales Tax Revenue Refunding Bonds, Series 1993-A, 5.625%, 7/01/18 - ---------------------------------------------------------------------------------------------------------------------------------- COLORADO - 7.2% Colorado Housing Finance Authority, Single Family Program Senior Revenue Bonds, Series 1992A-1: 3,480,000 6.800%, 11/01/12 5/02 at 102 AA+ 3,688,800 975,000 6.875%, 11/01/16 5/02 at 102 AA+ 1,032,691 10,750,000 City and County of Denver, Colorado, Airport System Revenue Bonds, No Opt. Call BBB+ 13,532,100 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 8/06 at 102 AAA 1,094,780 (Medlantic Healthcare Group, Inc. Issue), Series 1996A, 5.750%, 8/15/16 - ---------------------------------------------------------------------------------------------------------------------------------- FLORIDA - 3.1% 250,000 Escambia County, Florida, Pollution Control Revenue Bonds 12/03 at 102 Baa1 254,455 (Champion International Project), Series 1993, 5.875%, 6/01/22 (Alternative Minimum Tax) 7,000,000 State Board of Education of Florida, Public Education Capital 6/02 at 101 Aaa 7,676,130 Outlay Bonds, Series 1991-C, 6.625%, 6/01/22 (Pre-refunded to 6/01/02) - ---------------------------------------------------------------------------------------------------------------------------------- HAWAII - 0.5% 1,330,000 State of Hawaii, Certificates of Participation (Kapolei State Office 11/08 at 101 AAA 1,315,131 Building), 1998 Series A, 5.000%, 5/01/17 - ---------------------------------------------------------------------------------------------------------------------------------- ILLINOIS - 12.2% City of Chicago Heights, Illinois, General Obligation Corporate Purpose Bonds, Series 1993: 3,820,000 5.650%, 12/01/15 12/08 at 100 AAA 4,052,409 2,600,000 5.650%, 12/01/17 12/08 at 100 AAA 2,747,498 7,000,000 The County of Cook, Illinois, General Obligation Bonds, Series 1992A, 11/02 at 102 AAA 7,805,770 6.600%, 11/15/22 (Pre-refunded to 11/15/02) 1,260,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds, 7/01 at 102 A1*** 1,377,029 Loyola 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 A+*** 3,308,760 Loyola University of Chicago, Series 1989-A, 6.100%, 7/01/15 (Pre-refunded to 7/01/03) PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ---------------------------------------------------------------------------------------------------------------------------------- ILLINOIS (continued) $ 2,365,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call N/R $2,652,797 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 4,311,269 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 2,180,960 5.875%, 8/01/14 2,500,000 Regional Transportation Authority (Cook, DuPage, Kane, Lake, 6/03 at 102 AAA 2,684,675 McHenry and Will 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 4/02 at 102 A+ 3,276,960 Hospital 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+ 1,087,130 2,250,000 7.000%, 8/01/18 2/02 at 102 A+ 2,428,470 - ---------------------------------------------------------------------------------------------------------------------------------- IOWA - 1.1% 2,565,000 Woodbury County, Iowa, Hospital Facility Revenue Bonds (St. Lukes 3/01 at 102 AAA 2,762,556 Regional Medical Center Project), Series 1991A, 6.750%, 3/01/21 (Pre-refunded to 3/01/01) - ---------------------------------------------------------------------------------------------------------------------------------- KANSAS - 3.9% 9,000,000 City of Wichita, Kansas, Revenue Bonds (CSJ Health System of 11/01 at 102 A+ 9,967,140 Wichita, Inc.), Series 1985 XXV (Remarketed), 7.200%, 10/01/15 - ---------------------------------------------------------------------------------------------------------------------------------- KENTUCKY - 1.9% 1,100,000 County of Jefferson, Kentucky, Health System Revenue Bonds, 10/08 at 101 AAA 1,100,000 Series 1998 (Alliant Health System, Inc.), 5.125%, 10/01/18 3,230,000 Lexington-Fayette Urban County Government (Kentucky), 11/04 at 102 AAA 3,740,695 Governmental Project Revenue Bonds, Series 1994 (University of Kentucky Alumni Association, Inc.-Commonwealth Library Project), 6.750%, 11/01/15 (Pre-refunded to 11/01/04) - ---------------------------------------------------------------------------------------------------------------------------------- MAINE - 2.0% Maine Educational Loan Authority, Educational Loan Revenue Bonds (Supplemental Educational Loan Program), Series 1992A-1: 1,725,000 6.800%, 12/01/07 (Alternative Minimum Tax) 12/02 at 102 Aaa 1,835,831 1,955,000 7.000%, 12/01/16 (Alternative Minimum Tax) 12/02 at 102 Aaa 2,072,652 1,080,000 Maine Educational Loan Authority, Educational Loan Revenue 12/02 at 102 A 1,148,440 Bonds (Supplemental Educational Loan Program), Series 1992A-2, 7.150%, 12/01/16 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- MASSACHUSETTS - 0.9% 2,000,000 Plymouth County (Massachusetts), Certificates of Participation 10/02 at 102 AA- 2,248,940 (Plymouth County Correctional Facility), Series A, 7.000%, 4/01/22 - ---------------------------------------------------------------------------------------------------------------------------------- MISSISSIPPI - 1.6% 3,600,000 Calhoun County (Mississippi), Solid Waste Disposal Revenue 4/07 at 103 A 4,050,288 Bonds (Weyerhauser Company Project), Series 1992, 6.875%, 4/01/16 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- NEW HAMPSHIRE - 4.1% 10,000,000 New Hampshire Housing Finance Authority, Multifamily Housing 7/01 at 102 A1 10,554,200 Revenue Refunding Bonds, 1991 Series 1, 7.050%, 7/01/11 - ---------------------------------------------------------------------------------------------------------------------------------- NEW YORK - 11.7% 7,250,000 Metropolitan Transportation Authority (New York), Commuter 7/01 at 102 BBB+ 7,852,113 Facilities 1987 Service Contract Bonds, Series 5, 7.000%, 7/01/12 3,000,000 Metropolitan Transportation Authority (New York), Transit 7/02 at 100 BBB+ 3,132,570 Facilities Service Contract Bonds, Series N, 6.000%, 7/01/11 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ---------------------------------------------------------------------------------------------------------------------------------- NEW YORK (continued) The City of New York, New York, General Obligation Bonds, Fiscal 1995 Series A: $ 300,000 6.250%, 8/01/10 (Pre-refunded to 8/01/04) 8/04 at 101 1/2 A-*** $ 336,909 4,870,000 6.250%, 8/01/10 8/04 at 101 1/2 A- 5,393,379 4,465,000 New York State Dormitory Authority, State University Educational 5/02 at 102 Aaa 5,009,819 Facilities Revenue Bonds, Series 1991A, 7.250%, 5/15/18 (Pre-refunded to 5/15/02) 2,090,000 New York Local Government Assistance Corporation, New York, 4/01 at 100 AAA 2,229,487 Series 1991B, 7.000%, 4/01/21 (Pre-refunded to 4/01/01) 1,365,000 New York Local Government Assistance Corporation (A Public 4/02 at 102 AAA 1,517,703 Benefit Corporation of the State of New York), Series 1991D Bonds, 7.000%, 4/01/18 (Pre-refunded to 4/01/02) New York State Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement Revenue Bonds, 1991 Series A: 180,000 7.500%, 2/15/21 (Pre-refunded to 2/15/01) 2/01 at 102 Aaa 196,094 900,000 7.500%, 2/15/21 2/01 at 102 A3 972,234 New York State Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement Revenue Bonds, 1991 Series D: 1,395,000 7.400%, 2/15/18 (Pre-refunded to 2/15/02) 2/02 at 102 A-*** 1,556,192 1,425,000 7.400%, 2/15/18 2/02 at 102 A- 1,568,897 - ---------------------------------------------------------------------------------------------------------------------------------- OHIO - 1.2% 2,810,000 Ohio Housing Finance Agency, Residential Mortgage Revenue 9/07 at 102 AAA 3,000,097 Bonds, Series 1997A, 6.050%, 9/01/17 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- PENNSYLVANIA - 4.8% 7,235,000 Delaware County Authority (Pennsylvania), First Mortgage Revenue 4/02 at 102 N/R*** 8,220,118 Bonds (The Dunwoody Project), Series 1992, 8.125%, 4/01/17 (Pre-refunded to 4/01/02) 1,290,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/02 at 102 AA+ 1,365,659 Revenue Bonds, Series 1992-33, 6.900%, 4/01/17 Pennsylvania Higher Educational Facilities Authority, Revenue Bonds (Thomas Jefferson University), 1992 Series A: 1,750,000 6.625%, 8/15/09 (Pre-refunded to 8/15/02) 8/02 at 102 A2*** 1,936,113 750,000 6.625%, 8/15/09 8/02 at 102 AAA 825,863 - ---------------------------------------------------------------------------------------------------------------------------------- SOUTH CAROLINA - 3.8% 5,000,000 South Carolina Housing Finance and Development Authority, 5/02 at 102 Aaa 5,320,300 Multifamily Housing 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 4,466,122 Certificates of Participation (York County Justice Center Project), Series 1991, 7.500%, 6/01/11 (Pre-refunded to 6/01/01) - ---------------------------------------------------------------------------------------------------------------------------------- TENNESSEE - 2.4% 5,750,000 Memphis-Shelby County Airport Authority (Tennessee), Airport 7/03 at 102 BBB 6,079,418 Special Facilities and Project Revenue Bonds (Federal Express Corporation), Series 1993, 6.200%, 7/01/14 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- TEXAS - 9.6% 9,825,000 Harris County Health Facilities Development Corporation (Texas), 6/02 at 102 A3*** 10,990,343 Hospital 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 4/02 at 102 A+ 4,308,080 Control 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 4/02 at 102 A+ 3,769,570 (Hoechst Celanese Corporation), Series 1992, 6.875%, 4/01/17 (Alternative Minimum Tax) City of San Antonio, Texas, Water System Revenue Refunding Bonds, Series 1992: 1,450,000 6.000%, 5/15/16 (Pre-refunded to 5/15/02) 5/02 at 100 AAA 1,547,629 465,000 6.000%, 5/15/16 No Opt. Call AAA 520,158 3,085,000 6.000%, 5/15/16 5/02 at 100 AAA 3,257,297 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ---------------------------------------------------------------------------------------------------------------------------------- VIRGINIA - 2.1% $ 5,070,000 Virginia Housing Development Authority, Commonwealth Mortgage 1/02 at 102 AA+ $5,285,222 Bonds, 1992 Series A, 7.100%, 1/01/17 - ---------------------------------------------------------------------------------------------------------------------------------- WASHINGTON - 8.9% 2,500,000 Public Utility District No. 1 of Snohomish County, Washington, 1/01 at 102 A+ 2,658,600 Electric 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 6,251,759 Generation System Revenue Bonds, Series 1989, 6.750%, 1/01/12 2,750,000 Washington Health Care Facilities Authority, Revenue Bonds, 2/02 at 102 AA- 2,953,417 Series 1992 (Sacred Heart Medical Center, Spokane), 6.875%, 2/15/12 10,000,000 Washington Public Power Supply System, Nuclear Project No. 1, 7/01 at 102 Aaa 10,877,599 Refunding Revenue Bonds, Series 1991A, 6.875%, 7/01/17 (Pre-refunded to 7/01/01) - ---------------------------------------------------------------------------------------------------------------------------------- WEST VIRGINIA - 1.3% 1,885,000 Marshall County, West Virginia, Special Obligation Refunding No Opt. Call AAA 2,176,250 Bonds, Series 1992, 6.500%, 5/15/10 1,000,000 West Virginia Housing Development Fund, Housing Finance Bonds, 5/02 at 103 AAA 1,078,909 1992 Series A, 7.000%, 5/01/24 - ---------------------------------------------------------------------------------------------------------------------------------- WISCONSIN - 2.1% 5,000,000 Wisconsin Housing and Economic Development Authority, 4/02 at 102 AA- 5,401,999 Multifamily Housing Revenue Bonds, 1992 Series B, 7.050%, 11/01/22 - ---------------------------------------------------------------------------------------------------------------------------------- WYOMING - 1.3% 3,000,000 Wyoming Community Development Authority, Single Family Mortgage 11/01 at 103 AA 3,188,849 Revenue Bonds (Federally Insured or Guaranteed Mortgage Loans), Series 1988-G, 7.200%, 6/01/10 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- $ 228,490,000 Total Investments - (cost $224,268,157) - 98.6% 251,052,526 =============--------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.4% 3,582,149 - ---------------------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $254,634,675 ================================================================================================================================== * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. government or U.S. government agency securities, which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
PORTFOLIO OF INVESTMENTS NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2 (NXQ) MARCH 31, 1999
PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ---------------------------------------------------------------------------------------------------------------------------------- CALIFORNIA - 5.3% $ 3,250,000 State Public Works Board of the State of California, Lease Revenue 3/04 at 102 Aaa $3,784,658 Bonds (California Community Colleges - Various Community College Projects), 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 Aa3 2,173,140 Refunding Bonds (The Regents of the University of California - Various University of California Projects), 1993 Series A, 5.500%, 6/01/14 5,000,000 State Public Works Board of the State of California, Lease 11/04 at 102 Aaa 5,879,650 Revenue Bonds (Department of Corrections, California State Prison - Monterey County (Soledad II)), 1994 Series A, 6.875%, 11/01/14 (Pre-refunded to 11/01/04) 500,000 State Public Works Board of the State of California, Lease Revenue 12/08 at 101 A 517,850 Refunding Bonds (California Community Colleges - Various Community College Projects), 1998 Series A, 5.250%, 12/01/16 500,000 City of Contra Costa, California, Water District, Water Revenue 10/07 at 100 AA- 502,580 Bonds, Refunding Series 1997 H, 5.000%, 10/01/17 500,000 County of Contra Costa, California, Certificates of Participation 11/07 at 102 AAA 520,040 (Merrithew Memorial Hospital Replacement Project), Refunding Series of 1997, 5.375%, 11/01/17 1,000,000 City of Fresno, California, Health Facility Revenue Bonds 12/03 at 102 AAA 1,050,300 (Holy Cross Health System Corporation), Series 1993B, 5.625%, 12/01/15 - ---------------------------------------------------------------------------------------------------------------------------------- COLORADO - 6.1% 3,535,000 Colorado Housing Finance Authority, Single Family Program 5/02 at 102 AA+ 3,825,860 Senior Bonds, Series 1992A-3, 7.000%, 11/01/24 (Alternative Minimum Tax) City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992B: 2,335,000 7.250%, 11/15/12 (Pre-refunded to 11/15/02) (Alternative Minimum Tax) 11/02 at 102 Aaa 2,646,256 9,130,000 7.250%, 11/15/12 (Alternative Minimum Tax) 11/02 at 102 BBB+ 10,039,531 - ---------------------------------------------------------------------------------------------------------------------------------- DISTRICT OF COLUMBIA - 5.1% 4,600,000 District of Columbia, Hospital Revenue Refunding Bonds 8/02 at 102 A3*** 5,144,226 (Washington 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 547,390 (Medlantic Healthcare Group, Inc. Issue), Series 1996A, 5.750%, 8/15/16 7,500,000 District of Columbia, General Obligation Bonds, Series 1992B, 6/02 at 102 AAA 8,190,675 6.300%, 6/01/12 (Pre-refunded to 6/01/02) - ---------------------------------------------------------------------------------------------------------------------------------- FLORIDA - 3.3% 8,180,000 Hillsborough County (Florida), Environmentally Sensitive Land 7/02 at 102 Aa3*** 8,987,611 Acquisition and Protection Program Bonds, Series 1992, 6.375%, 7/01/11 (Pre-refunded to 7/01/02) - ---------------------------------------------------------------------------------------------------------------------------------- HAWAII - 0.4% 1,100,000 State of Hawaii, Certificates of Participation (Kapolei State 11/08 at 101 AAA 1,087,702 Office Building), 1998 Series A, 5.000%, 5/01/17 - ---------------------------------------------------------------------------------------------------------------------------------- ILLINOIS - 12.1% 8,500,000 Chicago Metropolitan Housing Development Corporation (Illinois), 7/02 at 102 AA 9,266,445 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, 11/02 at 102 AAA 8,998,938 Series 1992A, 6.600%, 11/15/22 (Pre-refunded to 11/15/02) 2,500,000 Illinois Educational Facilities Authority, Columbia College, 12/03 at 102 BBB 2,575,450 Revenue Bonds, Series 1993, 6.125%,12/01/18 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ---------------------------------------------------------------------------------------------------------------------------------- ILLINOIS (continued) Illinois Educational Facilities Authority, Revenue Refunding Bonds, Columbia College, Series 1992: $ 2,610,000 6.875%, 12/01/17 (Pre-refunded to 12/01/04) 12/04 at 100 N/R*** $2,977,697 1,140,000 6.875%, 12/01/17 12/04 at 100 BBB 1,246,886 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 2,473,238 45,000 6.500%, 6/15/22 6/03 at 102 AA- 49,183 5,000,000 Regional Transportation Authority (Cook, DuPage, Kane, Lake, 6/03 at 102 AAA 5,369,350 McHenry and Will Counties in Illinois), General Obligation Bonds, Series 1993A, 5.800%, 6/01/13 - ---------------------------------------------------------------------------------------------------------------------------------- INDIANA - 5.8% 2,005,000 Howard County Jail and Juvenile Detention Center Corporation 1/02 at 102 A1*** 2,198,984 (Indiana), First Mortgage Revenue Bonds, Series 1992, 6.850%, 1/01/12 (Pre-refunded to 1/01/02) 10,000,000 Indiana Educational Facilities Authority, Educational Facilities 1/02 at 102 AAA 10,812,400 Refunding Revenue Bonds (Butler University Project), Series 1992A, 6.600%, 1/01/18 2,400,000 Westfield-Washington South School Building Corporation 7/02 at 102 A*** 2,644,344 (Indiana), First Mortgage Revenue Bonds, Series 1992, 6.500%, 7/15/13 (Pre-refunded to 7/15/02) - ---------------------------------------------------------------------------------------------------------------------------------- KENTUCKY - 1.9% 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 4,704,658 370,000 6.700%, 7/01/17 7/02 at 102 AAA 375,739 - ---------------------------------------------------------------------------------------------------------------------------------- LOUISIANA - 4.7% 11,425,000 Louisiana Public Facilities Authority, Revenue Bonds, Tulane 11/02 at 102 A+*** 12,704,257 University of Louisiana, 1992 Series, 6.625%, 11/15/21 (Pre-refunded to 11/15/02) - ---------------------------------------------------------------------------------------------------------------------------------- MASSACHUSETTS - 2.7% 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 2,215,921 1,585,000 6.500%, 8/01/11 8/01 at 102 AA- 1,708,630 3,000,000 Massachusetts Health and Educational Facilities Revenue 10/02 at 102 BBB+*** 3,345,450 Bonds (Jordan Memorial Hospital Issue), Series 1992C, 6.875%, 10/01/22 (Pre-refunded to 10/01/02) - ---------------------------------------------------------------------------------------------------------------------------------- MICHIGAN - 1.6% City of Royal Oak (Michigan), Hospital Finance Authority, Revenue Bonds (Beaumont Properties, Inc.), Series 1992E: 435,000 6.625%, 1/01/19 (Pre-refunded to 1/01/02) 1/02 at 102 AAA 475,512 ' 3,565,000 6.625%, 1/01/19 1/02 at 102 AA 3,827,919 - ---------------------------------------------------------------------------------------------------------------------------------- MONTANA - 0.8% 2,065,000 City of Billings, Montana, Tax Increment Urban Renewal 3/02 at 101 Baa 2,217,996 Bonds, Refunding Series 1992, 7.100%, 3/01/08 - ---------------------------------------------------------------------------------------------------------------------------------- NEVADA - 0.2% 500,000 Clark County, Nevada, General Obligation (Limited Tax), 7/06 at 101 AAA 518,915 Las Vegas Convention and Visitors Authority Bonds, Series September 1, 1996, 5.500%, 7/01/17 - ---------------------------------------------------------------------------------------------------------------------------------- NEW YORK - 10.8% 3,850,000 Metropolitan Transportation Authority (New York), Transit 7/02 at 100 BBB+ 4,020,132 Facilities Service Contract Bonds, Series N, 6.000%, 7/01/11 The City of New York, General Obligation Bonds, Fiscal 1992 Series H: 7,035,000 7.100%, 2/01/11 (Pre-refunded to 2/01/02) 2/02 at 101 1/2 A-*** 7,762,208 965,000 7.100%, 2/01/11 2/02 at 101 1/2 A- 1,055,614 2,725,000 7.100%, 2/01/12 (Pre-refunded to 2/01/02) 2/02 at 101 1/2 A-*** 3,006,683 425,000 7.100%, 2/01/12 2/02 at 101 1/2 A- 464,729 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ---------------------------------------------------------------------------------------------------------------------------------- NEW YORK (continued) $ 2,695,000 Dormitory Authority of the State of New York, State University 5/00 at 102 Aaa $2,866,456 Educational 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, 2/05 at 102 AAA 4,634,920 New York Hospital FHA - Insured Mortgage Revenue Bonds, 1994 Series A, 6.750%, 8/15/14 (Pre-refunded to 2/15/05) 5,000,000 Triborough Bridge and Tunnel Authority (New York), Convention No Opt. Call BBB+ 5,877,000 Center Project Bonds, Series E, 7.250%, 1/01/10 - ---------------------------------------------------------------------------------------------------------------------------------- OHIO - 2.4% 2,800,000 County of Cuyahoga, Ohio, Hospital Revenue Bonds (Meridia 8/05 at 102 AAA 3,198,888 Health System), Series 1995, 6.250%, 8/15/14 (Pre-refunded to 8/15/05) 3,000,000 County of Erie, Ohio Hospital Improvement and Refunding 1/02 at 102 A 3,238,170 Revenue Bonds, Series 1992 (Firelands Community Hospital Project), 6.750%, 1/01/15 - ---------------------------------------------------------------------------------------------------------------------------------- OKLAHOMA - 2.4% 6,000,000 Oklahoma City, Oklahoma, Water Utilities Trust, Water and Sewer 7/02 at 100 AAA 6,427,680 Revenue Bonds, 6.400%, 7/01/17 - ---------------------------------------------------------------------------------------------------------------------------------- PENNSYLVANIA - 2.9% 1,000,000 Dauphin County General Authority (Pennsylvania), Health System 2/09 at 101 AAA 999,940 Revenue Bonds, Series of 1999 (Pinnacle Health System Project), 5.125%, 8/15/17 6,295,000 Pennsylvania Intergovernmental Cooperation Authority, Special 6/02 at 100 Aaa 6,880,309 Tax Revenue 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 8/02 at 102 AAA 6,145,095 Obligation Bonds, 1992 Series A, 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 5/02 at 102 A1 7,605,360 Revenue Bonds (Union Camp Corporation Project), Series 1992-A, 6.750%, 5/01/22 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- TENNESSEE - 5.3% 4,500,000 Memphis-Shelby County Airport Authority (Tennessee), Special 9/01 at 103 BBB 4,963,455 Facilities Revenue Bonds, Series 1984 (Federal Express Corporation), 7.875%, 9/01/09 8,895,000 Tennessee Housing Development Agency, Homeownership 7/02 at 102 AA 9,404,861 Program Bonds, Issue WR, 6.800%, 7/01/17 - ---------------------------------------------------------------------------------------------------------------------------------- TEXAS - 7.8% 3,275,000 Bexar County (Texas), Health Facilities Development Corporation, 8/04 at 102 AAA 3,792,286 Hospital Revenue Bonds (Baptist Memorial Hospital System Project), Series 1994, 6.900%, 2/15/14 (Pre-refunded to 8/15/04) 4,755,000 Cleveland Housing Corporation (Texas), Mortgage Revenue 1/01 at 102 AAA 4,977,962 Refunding Bonds, Series 1992-C (FHA Insured-Section 8), 7.375%, 7/01/24 2,500,000 Harris County Health Facilities Development Corporation, Texas 10/05 at 102 AAA 2,586,575 Children's Hospital Project, Series 1995, 5.500%, 10/01/16 7,600,000 Port of Corpus Christi Authority of Nueces County (Texas), 4/02 at 102 A+ 8,185,352 Pollution Control 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 4/02 at 102 A+ 1,572,449 (Hoechst Celanese Corporation), Series 1992, 6.875%, 4/01/17 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- UTAH - 1.0% 1,655,000 Municipal Building Authority of Ogden City School District, 1/02 at 101 A3*** 1,815,221 Weber County, Utah, Lease Revenue Bonds (Central Middle School Project), Series 1992, 6.700%, 1/01/12 (Pre-refunded to 1/01/02) 745,000 Utah Housing Finance Agency, Single Family Mortgage 7/02 at 102 Aaa 787,927 Purchase Refunding Senior Bonds, Series 1992, 6.800%, 1/01/12 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ---------------------------------------------------------------------------------------------------------------------------------- VERMONT - 1.4% $ 3,600,000 Vermont Industrial Development Authority, Industrial Development 9/02 at 102 A $3,863,088 Refunding 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, 4/02 at 102 N/R*** 2,192,400 Virginia, Hospital Facility Revenue Bonds (Alleghany Regional Hospital), Series 1992, 6.625%, 4/01/12 (Pre-refunded to 4/01/02) - ---------------------------------------------------------------------------------------------------------------------------------- WASHINGTON - 3.9% Washington Public Power Supply System, Nuclear Project No. 3, Refunding Revenue Bonds, Series 1991A: 3,600,000 6.750%, 7/01/11 (Pre-refunded to 7/01/01) 7/01 at 102 Aa1*** 3,911,220 6,160,000 6.500%, 7/01/18 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 6,659,514 - ---------------------------------------------------------------------------------------------------------------------------------- WEST VIRGINIA - 0.7% 1,750,000 West Virginia School Building Authority, Capital Improvement 7/02 at 102 A*** 1,930,932 Revenue Bonds, Series 1992-A, 6.625%, 7/01/22 (Pre-refunded to 7/01/02) - ---------------------------------------------------------------------------------------------------------------------------------- WISCONSIN - 4.0% 10,000,000 Wisconsin Housing and Economic Development Authority, 4/02 at 102 AA- 10,755,099 Multi-Family Housing Revenue Bonds, 1992 Series D, 7.200%, 11/01/13 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- $ 244,335,000 Total Investments - (cost $241,823,198) - 98.5% 267,186,906 =============--------------------------------------------------------------------------------------------------------------------- TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.4% $ 1,000,000 Raleigh-Durham, North Carolina, Airport Authority, Series B, A-1+ 1,000,000 Variable Rate Demand Bonds, 3.200%, 11/01/15+ - ---------------------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.1% 3,052,866 - ---------------------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $271,239,772 ================================================================================================================================== * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. government or U.S. government agency securities, which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. + 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. N/R Investment is not rated. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
PORTFOLIO OF INVESTMENTS NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3 (NXR) MARCH 31, 1999
PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ---------------------------------------------------------------------------------------------------------------------------------- CALIFORNIA - 2.9% $ 3,000,000 State Public Works Board of the State of California, Lease Revenue 11/04 at 102 Aaa $3,527,790 Bonds (Department of Corrections, California State Prison - Monterey County (Soledad II)), 1994 Series A, 6.875%, 11/01/14 (Pre-refunded to 11/01/04) 500,000 City of Fresno, California, Health Facility Revenue Refunding 12/03 at 102 AAA 520,510 Bonds (Holy Cross Health System Corporation), 5.625%, 12/01/18 1,490,000 City of Torrance (California), Hospital Revenue Bonds 7/02 at 102 A 1,668,502 (Little Company 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 11/02 at 100 AA 2,664,775 Revenue Bonds, Series 1992A, 6.125%, 11/15/20 1,500,000 City and County of Denver, Colorado, Airport System Revenue No Opt. Call BBB+ 1,888,200 Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax) City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992B: 815,000 7.250%, 11/15/23 (Pre-refunded to 11/15/02) (Alternative Minimum Tax) 11/02 at 102 Aaa 923,640 3,185,000 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 BBB+ 3,504,551 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992C: 470,000 6.750%, 11/15/13 (Pre-refunded to 11/15/02) (Alternative Minimum Tax) 11/02 at 102 Aaa 525,108 3,530,000 6.750%, 11/15/13 (Alternative Minimum Tax) 11/02 at 102 BBB+ 3,817,413 - ---------------------------------------------------------------------------------------------------------------------------------- CONNECTICUT - 0.1% 250,000 State of Connecticut, Health and Educational Facilities 7/02 at 102 AAA 272,705 Authority, Revenue Bonds, Bridgeport Hospital Issue, Series A, 6.625%, 7/01/18 - ---------------------------------------------------------------------------------------------------------------------------------- DISTRICT OF COLUMBIA - 3.5% 2,000,000 District of Columbia, Hospital Revenue Refunding Bonds (Washington 8/02 at 102 A3*** 2,236,620 Hospital Center), Series 1992-A, 7.125%, 8/15/19 (Pre-refunded to 8/15/02) District of Columbia, General Obligation Bonds, Series 1993E: 165,000 6.000%, 6/01/13 (Pre-refunded to 6/01/03) 6/03 at 102 AAA 181,442 4,080,000 6.000%, 6/01/13 6/03 at 102 AAA 4,445,242 - ---------------------------------------------------------------------------------------------------------------------------------- FLORIDA - 2.1% 3,675,000 City of Tampa, Florida, Revenue Bonds (The Florida Aquarium 5/02 at 102 N/R*** 4,129,083 Project), 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*** 2,465,685 2,000,000 6.375%, 9/01/22 (Pre-refunded to 9/01/02) 9/02 at 102 Baa1*** 2,199,680 - ---------------------------------------------------------------------------------------------------------------------------------- ILLINOIS - 14.5% 3,000,000 Village of Bryant, Illinois, Pollution Control Revenue Refunding Bonds 2/02 at 102 Aa2 3,170,640 (Central Illinois Light Company Project), Series 1992, 6.500%, 2/01/18 2,500,000 Chicago Metropolitan Housing Development Corporation (Illinois), 7/02 at 102 AA 2,729,175 Housing 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 6/02 at 102 AAA 2,694,585 (FHA-Insured Mortgage Loan - Lakeview Towers Project), 6.600%, 12/01/20 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ---------------------------------------------------------------------------------------------------------------------------------- ILLINOIS (continued) $ 1,700,000 City of Chicago, Chicago - O'Hare International Airport, 1/03 at 102 AAA $1,747,294 General Airport Second Lien Revenue Refunding Bonds, 5.600%, 1/01/18 (Alternative Minimum Tax) 1,500,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992C No Opt. Call N/R 1,719,735 (Evangelical Hospitals Corporation), 6.250%, 4/15/22 4,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992B 9/06 at 100 AAA 4,624,920 (Franciscan Sisters Health Care Corporation Project), 6.625%, 9/01/13 (Pre-refunded to 9/01/06) 1,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992 10/02 at 102 Baa2 1,108,540 (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 AA-*** 8,568,245 Revenue Bonds, 1992 Series A, 6.375%, 1/01/15 (Pre-refunded to 1/01/03) 1,360,000 Board of Regents of Sangamon State University (Illinois), Auxiliary 10/02 at 102 AAA 1,502,569 Facilities System, Revenue Bonds, Series 1992, 6.375%, 10/01/17 (Pre-refunded to 10/01/02) - ---------------------------------------------------------------------------------------------------------------------------------- INDIANA - 5.5% 1,205,000 Allen County, Indiana, Refunding Certificates of Participation, 5/02 at 101 Aa3 1,295,821 Series 1991, 6.500%, 11/01/17 4,000,000 Indiana State Office Building Commission, Correctional Facilities 12/01 at 102 Aa3*** 4,351,040 Program, Revenue Bonds, Series 1991, 6.375%, 7/01/16 (Pre-refunded to 12/01/01) 2,000,000 School Building Corporation of Warren Township (Marion County, 7/02 at 102 A+*** 2,172,960 Indiana), First Mortgage Bonds, Series 1992A, 6.000%, 7/15/12 (Pre-refunded to 7/15/02) 2,725,000 Warrick County, Indiana, Adjustable Rate Environmental Improvement 5/03 at 102 AA 2,883,977 Revenue Bonds, 1993 Series B (Southern Indiana Gas and Electric Company Project), 6.000%, 5/01/23 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- KENTUCKY - 2.5% County of Trimble, Kentucky, Pollution Control Revenue Bonds (Louisville Gas and Electric Company Project), 1990 Series B: 500,000 6.550%, 11/01/20 (Pre-refunded to 9/16/02) (Alternative Minimum Tax) 9/02 at 102 Aaa 553,365 4,080,000 6.550%, 11/01/20 (Alternative Minimum Tax) 9/02 at 102 Aa2 4,382,981 - ---------------------------------------------------------------------------------------------------------------------------------- LOUISIANA - 2.2% 4,000,000 Louisiana Public Facilities Authority, Revenue Bonds, Series 1992, 2/03 at 101 AA- 4,328,400 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, 11/02 at 102 Aaa 1,410,995 Revenue Bonds, MetroWest Health, Inc. Issue, Series C, 6.500%, 11/15/18 (Pre-refunded to 11/15/02) - ---------------------------------------------------------------------------------------------------------------------------------- MICHIGAN - 6.7% 4,000,000 Michigan State Housing Development Authority, Single Family 6/06 at 102 AA+ 4,204,320 Mortgage Revenue Bonds, 1996 Series C, 5.950%, 12/01/17 8,240,000 Michigan Housing Development Authority, Limited Obligation 9/02 at 103 AAA 8,838,224 Revenue Bonds (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 2,106,591 980,000 6.250%, 7/01/22 (Pre-refunded to 7/01/02) (Alternative Minimum Tax) 7/02 at 102 AAA 1,071,767 20,000 6.250%, 7/01/22 (Alternative Minimum Tax) 7/02 at 102 A 21,540 - ---------------------------------------------------------------------------------------------------------------------------------- NEW YORK - 10.4% 1,060,000 The City of New York, New York, General Obligation Bonds, 2/02 at 101 1/2 A- 1,154,488 Fiscal 1992 Series B, 7.000%, 2/01/18 The City of New York, New York, General Obligation Bonds, Fiscal 1992 Series C, Subseries C-1: 1,690,000 7.000%, 8/01/17 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 1,886,547 60,000 7.000%, 8/01/17 8/02 at 101 1/2 A- 66,082 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ---------------------------------------------------------------------------------------------------------------------------------- NEW YORK (continued) $ 1,455,000 The City of New York, New York, General Obligation Bonds, 2/02 at 101 1/2 Aaa $1,622,078 Fiscal 1992 Series D, 7.500%, 2/01/18 (Pre-refunded to 2/01/02) 45,000 The City of New York, New York, General Obligation Bonds, 2/02 at 101 1/2 A- 49,607 Fiscal 1991 Series D, 7.500%, 2/01/18 The City of New York, New York, General Obligation Bonds, Fiscal 1991 Series B: 955,000 7.000%, 6/01/12 (Pre-refunded to 6/01/01) 6/01 at 101 1/2 Aaa 1,037,073 45,000 7.000%, 6/01/12 6/01 at 101 1/2 A- 48,561 The City of New York, New York, General Obligation Bonds, Fiscal 1992 Series H: 1,765,000 7.100%, 2/01/11 (Pre-refunded to 2/01/02) 2/02 at 101 1/2 A-*** 1,947,448 235,000 7.100%, 2/01/11 2/02 at 101 1/2 A- 257,067 2,785,000 New York City Municipal Water Finance Authority (New York), 6/02 at 101 AAA 3,034,146 Water and Sewer System Revenue Bonds, Fixed Rate Fiscal 1993 Series B, 6.375%, 6/15/22 (Pre-refunded to 6/15/02) 4,000,000 New York City Municipal Water Finance Authority (New York), 6/02 at 101 1/2 A1 4,274,160 Water and Sewer System Revenue Bonds, Fiscal 1993 Series A, 6.000%, 6/15/17 2,130,000 Dormitory Authority of the State of New York, City University No Opt. Call BBB+ 2,568,588 Resolution Revenue Bonds, Series 1990C, 7.500%, 7/01/10 2,000,000 New York State Medical Care Facilities Finance Agency, Hospital 8/02 at 102 AAA 2,132,620 and Nursing Home FHA - Insured Mortgage Revenue Bonds, 1992 Series C (Mount Sinai Hospital), 6.250%, 8/15/12 - ---------------------------------------------------------------------------------------------------------------------------------- PENNSYLVANIA - 6.2% 2,500,000 Cambria County Hospital Development Authority (Pennsylvania), 7/02 at 102 AAA 2,739,550 Hospital Revenue Refunding and Improvement Bonds, Series B of 1992 (Conemaugh Valley Memorial Hospital Project), 6.375%, 7/01/18 (Pre-refunded to 7/01/02) 2,435,000 Dauphin County, Pennsylvania, Industrial Development Authority, No Opt. Call A 2,894,314 Water Development Refunding Revenue Bonds, Series 1992B (Dauphin Consolidated Water Supply Company), 6.700%, 6/01/17 4,000,000 Pennsylvania Housing Finance Agency, Rental Housing Refunding 7/02 at 102 AAA 4,270,560 Bonds, Issue of 1992 (FNMA Insured Mortgage Loans), 6.500%, 7/01/23 2,000,000 Pennsylvania Higher Educational Facilities Authority, Revenue 5/03 at 102 A- 2,158,860 Bonds (Drexel University), Series 1993, 6.375%, 5/01/17 - ---------------------------------------------------------------------------------------------------------------------------------- SOUTH CAROLINA - 3.1% 4,000,000 South Carolina Public Service Authority, Revenue Bonds, 7/02 at 102 Aa2 4,335,120 1992 Refunding Series A, 6.375%, 7/01/11 City of Spartanburg, South Carolina, Water System Improvement Refunding Revenue Bonds, Series 1992: 1,290,000 6.250%, 6/01/17 (Pre-refunded to 6/01/02) 6/02 at 101 AAA 1,399,457 310,000 6.250%, 6/01/17 6/02 at 101 AA- 331,499 - ---------------------------------------------------------------------------------------------------------------------------------- SOUTH DAKOTA - 2.3% 4,000,000 South Dakota Health and Educational Facilities Authority, 9/02 at 102 AAA 4,377,520 Revenue Bonds, Series 1992 (Rapid City Regional Hospital Issue), 6.150%, 9/01/18 (Pre-refunded to 9/01/02) - ---------------------------------------------------------------------------------------------------------------------------------- TENNESSEE - 2.5% 4,420,000 Memphis - Shelby County Airport Authority (Tennessee), Special 9/02 at 102 BBB 4,817,004 Facilities Revenue Refunding Bonds, Series 1992 (Federal Express Corporation), 6.750%, 9/01/12 - ---------------------------------------------------------------------------------------------------------------------------------- TEXAS - 6.1% 3,755,000 Grand Prairie Industrial Development Authority, Industrial 12/02 at 102 A 4,014,433 Development Revenue Refunding Bonds, Series 1992 (Baxter International Inc. Project), 6.550%, 12/01/12 2,500,000 Harris County Health Facilities (Texas), Development Corporation 10/04 at 101 AAA 2,817,900 Hospital Revenue Bonds (Hermann Hospital), Series 1994, 6.375%, 10/01/17 (Pre-refunded to 10/01/04) 5,000,000 North Central Texas Health Facilities Development 5/06 at 102 AA 5,023,100 Corporation, Hospital Revenue Refunding Bonds (Baylor Health Care System Project), Series 1995, 5.250%, 5/15/16 - ---------------------------------------------------------------------------------------------------------------------------------- VIRGINIA - 2.1% 4,000,000 Virginia Housing Development Authority, Commonwealth 1/02 at 102 AA+ 4,133,360 Mortgage Bonds, 1992 Series A, 7.100%, 1/01/22 PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ---------------------------------------------------------------------------------------------------------------------------------- WASHINGTON - 9.9% Port of Seattle, Washington, Revenue Bonds, Series 1992B: $ 290,000 6.000%, 11/01/17 (Pre-refunded to 11/01/02) (Alternative Minimum Tax) 11/02 at 100 AA-*** $ 311,225 3,710,000 6.000%, 11/01/17 (Alternative Minimum Tax) 11/02 at 100 AA- 3,935,568 5,840,000 State of Washington, Certificates of Participation, Series 1991-A, 4/01 at 102 Aa2 6,121,254 State Office Building Project, 6.000%, 4/01/12 4,000,000 Washington Public Power Supply System, Nuclear Project No. 1, 7/01 at 102 Aaa 4,351,040 Refunding Revenue Bonds, Series 1991A, 6.875%, 7/01/17 (Pre-refunded to 7/01/01) 4,000,000 Washington Public Power Supply System, Nuclear Project No. 1, 7/02 at 102 AAA 4,411,400 Refunding Revenue Bonds, Series 1992A, 6.500%, 7/01/15 (Pre-refunded to 7/01/02) - ---------------------------------------------------------------------------------------------------------------------------------- WEST VIRGINIA - 4.3% 2,500,000 Berkeley County Building Commission (West Virginia), Hospital 11/02 at 102 BBB+ 2,658,300 Revenue Bonds (City Hospital Project), Series 1992, 6.500%, 11/01/09 3,000,000 Mason County, West Virginia, Pollution Control Revenue Bonds 10/02 at 102 BBB+ 3,193,380 (Appalachian Power Company Project), Series 1992J, 6.600%, 10/01/22 West Virginia School Building Authority, Capital Improvement Revenue Bonds, Series 1992-A: 1,855,000 6.500%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 102 A*** 2,039,757 395,000 6.500%, 7/01/12 7/02 at 102 A 427,504 - ---------------------------------------------------------------------------------------------------------------------------------- $ 175,770,000 Total Investments - (cost $174,609,511) - 98.5% 191,299,200 =============--------------------------------------------------------------------------------------------------------------------- TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.6% $ 1,200,000 Sweetwater Co. (Pacificorp), Pollution Control, Variable Rate A-1+ 1,200,000 Demand Bonds, 3.050%, 12/01/14+ - ---------------------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.9% 1,665,484 - ---------------------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $194,164,684 ================================================================================================================================== * Optional Call Provisions (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. government or U.S. government agency securities, which ensures the timely payment of principal and interest. Securities are normally considered to be equivalent to AAA rated securities. + 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. N/R Investment is not rated. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
PORTFOLIO OF INVESTMENTS NUVEEN INSURED CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO (NXC) MARCH 31, 1999
PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ---------------------------------------------------------------------------------------------------------------------------------- EDUCATION AND CIVIC ORGANIZATIONS - 1.6% $ 1,410,000 California Educational Facilities Authority, Refunding Revenue 10/01 at 100 AAA $1,484,702 Bonds, Series 1992 (Loyola Marymount University), 6.000%, 10/01/14 - ---------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE - 8.5% 2,500,000 California Health Facilities Financing Authority, Insured Hospital 10/02 at 102 AAA 2,736,650 Revenue Bonds (Scripps Memorial Hospitals), Series 1992A, 6.400%, 10/01/12 1,000,000 California Health Facilities Financing Authority, Insured Hospital 3/01 at 102 AAA 1,067,450 Revenue Bonds (Adventist Health System/West), 1991 Series B, 6.500%, 3/01/11 4,000,000 California Health Facilities Financing Authority, Insured Hospital 8/02 at 102 AAA 4,357,600 Revenue Bonds (San Diego Hospital Association), Series 1992B, 6.125%, 8/01/11 - ---------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL - 7.3% Golden West Schools Financing Authority (California), 1999 Revenue Bonds (School District General Obligation Refunding Program), Series A: 4,650,000 0.000%, 8/01/16 (WI) No Opt. Call AAA 1,970,577 1,750,000 0.000%, 2/01/17 (WI) No Opt. Call AAA 717,203 4,000,000 City of Oakland, Alameda County, California, General Obligation 6/02 at 102 AAA 4,310,520 Bonds, Series 1992, 6.000%, 6/15/17 - ---------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED - 17.9% 3,500,000 State Public Works Board of the State of California, Lease No Opt. Call AAA 4,190,725 Revenue Bonds (Department of Corrections), Series 1991A (State Prisons - Imperial County), 6.500%, 9/01/17 2,430,000 County of Los Angeles, Certificates of Participation 4/02 at 102 AAA 2,606,758 (Edmund D. Edelman Children's Court and Petersen Museum Projects), 6.000%, 4/01/12 1,500,000 Los Angeles County Metropolitan Transportation Authority 7/03 at 102 AAA 1,566,435 (California), Proposition A, Sales Tax Revenue Refunding Bonds, Series 1993-A, 5.625%, 7/01/18 4,000,000 San Bernardino County, California, Certificates of Participation 11/02 at 102 AAA 4,328,960 (1992 West Valley Detention Center Refinancing Project), 6.000%, 11/01/18 4,000,000 Walnut Public Financing Authority (Los Angeles County, California), 9/02 at 102 AAA 4,388,120 1992 Tax Allocation Revenue Bonds (Walnut Improvement Project), 6.500%, 9/01/22 - ---------------------------------------------------------------------------------------------------------------------------------- TRANSPORTATION - 11.7% 3,675,000 Palm Springs Financing Authority, Palm Springs Regional 1/02 at 102 AAA 3,876,427 Airport, Revenue 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 4,092,713 6.500%, 11/01/16 (Alternative Minimum Tax) 2,095,000 Airports Commission of San Francisco City and County, 5/02 at 102 AAA 2,282,628 California, San Francisco International Airport, Second Series Refunding Revenue Bonds, Issue 1, 6.300%, 5/01/11 820,000 Airports Commission of San Francisco City and County, California, 5/03 at 101 AAA 890,397 San Francisco International Airport, Second Series Refunding Revenue Bonds, Issue 4, 6.200%, 5/01/20 (Alternative Minimum Tax) - ---------------------------------------------------------------------------------------------------------------------------------- U.S. GUARANTEED - 36.7% 2,320,000 Brea Public Financing Authority (Orange County, California), 7/00 at 102 AAA 2,453,586 1991 Lease Revenue Bonds, Series A, 6.250%, 7/01/21 (Pre-refunded to 7/01/00) 640,000 California Educational Facilities Authority, Refunding Revenue 10/01 at 100 AAA 680,115 Bonds, Series 1992 (Loyola Marymount University), 6.000%, 10/01/14 (Pre-refunded to 10/01/01) 4,000,000 The Community Redevelopment Agency of the City of Los Angeles, 7/02 at 102 AAA 4,390,040 California, Hollywood Redevelopment Project, Tax Allocation Bonds, Series B, 6.100%, 7/01/22 (Pre-refunded to 7/01/02) PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ---------------------------------------------------------------------------------------------------------------------------------- U.S. GUARANTEED (continued) $ 4,000,000 City of Los Angeles, California, Wastewater System Revenue 6/02 at 102 AAA $4,400,360 Bonds, Series 1992-B, 6.250%, 6/01/12 (Pre-refunded to 6/01/02) 1,500,000 Modesto Irrigation District Financing Authority, Domestic Water 9/02 at 102 AAA 1,651,080 Project Revenue Bonds, Series 1992A, 6.125%, 9/01/19 (Pre-refunded to 9/01/02) Rio Linda Union School District (California), General Obligation Bonds, Series 1992A: 475,000 6.250%, 8/01/15 (Pre-refunded to 8/01/02) 8/02 at 102 AAA 524,433 3,310,000 6.375%, 8/01/17 (Pre-refunded to 8/01/02) 8/02 at 102 AAA 3,667,381 3,800,000 Sacramento Municipal Utility District (California), Electric 8/02 at 102 AAA 4,214,010 Revenue Bonds, 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 8/04 at 102 AAA 4,654,320 (1994 Inmate Reception Center and Cooling Plant Financing), 6.750%, 8/01/14 (Pre-refunded to 8/01/04) 1,405,000 Airports Commission of San Francisco City and County, 5/02 at 102 AAA 1,544,882 California, San Francisco International Airport, Second Series Refunding Revenue Bonds, Issue 1, 6.300%, 5/01/11 (Pre-refunded to 5/01/02) 1,330,000 Airports Commission of San Francisco City and County, 5/03 at 102 AAA 1,482,897 California, San Francisco International Airport, Second Series Refunding Revenue Bonds, Issue 4, 6.200%, 5/01/20 (Pre-refunded to 5/01/03) (Alternative Minimum Tax) 1,000,000 Tulare County, California, Certificates of Participation (1992 11/02 at 102 AAA 1,106,710 Financing Project), Series A, 6.125%, 11/15/12 (Pre-refunded to 11/15/02) 4,000,000 Walnut Valley Water District, California, Certificates of 2/01 at 102 AAA 4,268,760 Participation (Badillo/ Grand Transmission Project), Series 1992, 6.125%, 2/01/18 (Pre-refunded to 2/01/01) - ---------------------------------------------------------------------------------------------------------------------------------- UTILITIES - 11.4% 3,450,000 M-S-R Public Power Agency (California), San Juan Project 7/01 at 100 AAA 3,604,767 Revenue Bonds, Series 1991E, 6.000%, 7/01/22 2,430,000 Modesto Irrigation District, California, Certificates of 10/01 at 100 AAA 2,580,514 Participation (Refunding and Capital Improvements Project), Series 1991A, 6.000%, 10/01/21 3,000,000 Northern California Power Agency, Hydroelectric Project 7/02 at 102 AAA 3,267,390 Number One, Revenue Bonds, 1992 Refunding Series A, 6.250%, 7/01/12 1,225,000 Turlock Irrigation District (California), Revenue Refunding No Opt. Call AAA 1,427,921 Bonds, Series 1992-A, 6.250%, 1/01/12 - ---------------------------------------------------------------------------------------------------------------------------------- WATER AND SEWER - 5.8% 4,000,000 Eastern Municipal Water District (Riverside County, California), 7/01 at 101 AAA 4,244,800 Water and Sewer Revenue Refunding Certificates of Participation, Series 1991A, 6.300%, 7/01/20 1,250,000 Fairfield - Suisun Sewer District (Solano County California), 5/01 at 102 AAA 1,333,824 Sewer Revenue Refunding Bonds, Series 1991A, 6.250%, 5/01/16 - ---------------------------------------------------------------------------------------------------------------------------------- $ 92,215,000 Total Investments - (cost $87,878,811) - 100.9% 96,365,655 =============--------------------------------------------------------------------------------------------------------------------- TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES - 0.7% $ 700,000 California Health Facilities Financing Authority, Sutter Health VMIG-1 700,000 Series B, Variable Rate Demand Bonds, 2.950%, 3/1/20+ - ---------------------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - (1.6%) (1,564,577) - ---------------------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $95,501,078 ================================================================================================================================== 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 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 (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying pricesat later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. (WI) Security purchased on a when-issued basis (note 1). + 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) MARCH 31, 1999
PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ---------------------------------------------------------------------------------------------------------------------------------- EDUCATION AND CIVIC ORGANIZATIONS - 20.2% $ 1,000,000 New York City Industrial Development Agency, Civic Facility 11/04 at 102 AAA $1,116,480 Revenue Bonds (USTA National Tennis Center Incorporated Project), 6.375%, 11/15/14 570,000 Dormitory Authority of the State of New York, City University No Opt. Call AAA 701,459 System Consolidated, Second General Resolution Revenue Bonds, Series 1990C, 7.500%, 7/01/10 1,370,000 Dormitory Authority of the State of New York, Siena College, 7/02 at 102 AAA 1,478,463 Insured Revenue Bonds, Series 1992, 6.000%, 7/01/11 2,050,000 Dormitory Authority of the State of New York, Ithaca College, 7/01 at 102 AAA 2,219,043 Revenue Bonds, 6.500%, 7/01/10 2,250,000 Dormitory Authority of the State of New York, New York 7/01 at 102 AAA 2,415,083 University Insured Revenue Bonds, Series 1991, 6.250%, 7/01/09 1,100,000 Dormitory Authority of the State of New York, Mount Sinai 7/01 at 102 AAA 1,187,978 School of Medicine, Insured Revenue Bonds, Series 1991, 6.750%, 7/01/15 2,500,000 Dormitory Authority of the State of New York, Marist College, 7/02 at 102 AAA 2,684,025 Insured Revenue Bonds, Series 1992, 6.000%, 7/01/12 - ---------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE - 4.6% 2,500,000 New York State Medical Care Facilities Finance Agency, Hospital 8/02 at 102 AAA 2,708,250 and Nursing Home FHA - Insured Mortgage Revenue Bonds, 1992 Series C (Mount Sinai Hospital), 6.250%, 8/15/12 - ---------------------------------------------------------------------------------------------------------------------------------- HOUSING/MULTIFAMILY - 4.8% 1,395,000 New Hartford Housing Development Corporation, Mortgage 7/02 at 100 AAA 1,483,638 Revenue Refunding Bonds, Series 1992-A (Village Point Project - FHA Insured Mortgage Loan, Section 8 Assisted Project), 7.375%, 1/01/24 1,245,000 New York State Housing Finance Agency, Insured Multi-Family 8/02 at 102 AAA 1,316,986 Housing Mortgage Revenue Bonds, Series 1992C (FHA Insured), 6.450%, 8/15/14 - ---------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL - 3.0% Town of Clarkstown, Rickland County, New York, Various Purposes Serial Bonds-1992: 505,000 5.600%, 6/15/10 No Opt. Call AAA 556,944 525,000 5.600%, 6/15/11 No Opt. Call AAA 577,448 525,000 5.600%, 6/15/12 No Opt. Call AAA 577,311 20,000 The City of New York, New York, General Obligation Bonds, 8/02 at 101 1/2 AAA 21,679 Fiscal 1992 Series C, 6.250%, 8/01/11 - ---------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED - 4.8% 20,000 New York State Medical Care Facilities Finance Agency, 8/02 at 102 AAA 21,672 Mental Health Services Facilities Improvement Revenue Bonds, 1992 Series D, 6.100%, 8/15/13 140,000 New York State Medical Care Facilities Finance Agency, 2/02 at 102 AAA 150,620 Mental Health Services Facilities Improvement Revenue Bonds, 1992 Series B, 6.250%, 8/15/18 200,000 New York State Thruway Authority, Highway and Bridge 4/05 at 102 AAA 203,426 Trust Fund Bonds, Series 1995B, 5.125%, 4/01/15 2,250,000 Triborough Bridge and Tunnel Authority (New York), Special 1/01 at 102 AAA 2,397,218 Obligation Refunding Bonds, Series 1991A, 6.625%, 1/01/17 - ---------------------------------------------------------------------------------------------------------------------------------- TRANSPORTATION - 4.8% 2,500,000 Port of Authority of New York and New Jersey, Consolidated 1/05 at 101 AAA 2,773,475 Revenue Bonds, Ninety-Seventh Series, 6.500%, 7/15/19 (Alternative Minimum Tax) PRINCIPAL OPTIONAL CALL MARKET AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE - ---------------------------------------------------------------------------------------------------------------------------------- U.S. GUARANTEED - 42.4% $ 3,500,000 Metropolitan Transportation Authority (New York), Commuter 7/02 at 102 AAA $3,836,805 Facilities Revenue Bonds, 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 2,475,045 Series J, 6.375%, 7/01/10 (Pre-refunded to 7/01/02) 235,000 The City of New York, New York, General Obligation Bonds, 8/02 at 101 1/2 AAA 256,853 Fiscal 1992 Series C, 6.250%, 8/01/11 (Pre-refunded to 8/01/02) 2,000,000 The City of New York, New York, General Obligation Bonds, 8/04 at 101 AAA 2,310,800 Fiscal 1994 Series B, 6.950%, 8/15/12 (Pre-refunded to 8/15/04) 1,000,000 New York City Municipal Water Finance Authority, 6/02 at 101 1/2 AAA 1,088,660 Water and Sewer System Revenue Bonds, Series 1992C, 6.200%, 6/15/21 (Pre-refunded to 6/15/02) 630,000 New York City Municipal Water Finance Authority, 6/01 at 100 AAA 666,219 Water And Sewer System Revenue Bonds, Fiscal 1992 Series A, 6.250%, 6/15/21 (Pre-refunded to 6/15/01) 1,560,000 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 1,956,146 Lease Revenue Bonds (Suffolk County Issue), Series 1986, 7.375%, 7/01/16 2,400,000 Dormitory Authority of the State of New York, Hamilton College, 7/01 at 102 AAA 2,597,904 Insured Revenue Bonds, Series 1991, 6.500%, 7/01/21 (Pre-refunded to 7/01/01) 1,965,000 New York State Medical Care Facilities Finance Agency, 2/02 at 102 AAA 2,135,621 Mental Health Services Facilities Improvement Revenue Bonds, 1992 Series B, 6.250%, 8/15/18 (Pre-refunded to 2/15/02) 2,500,000 New York State Medical Care Facilities Finance Agency, 2/05 at 102 AAA 2,896,825 New York Hospital FHA - Insured Mortgage Revenue Bonds, 1994 Series A, 6.750%, 8/15/14 (Pre-refunded to 2/15/05) 230,000 New York State Medical Care Facilities Financing Agency, 8/02 at 102 AAA 251,365 Mental Health Services Facilities Improvement Revenue Bonds, 1992 Series D, 6.100%, 8/15/13 (Pre-refunded to 8/15/02) 1,500,000 New York State Thruway Authority, General Revenue Bonds, 1/02 at 100 AAA 1,571,685 Series A, 5.500%, 1/01/23 (Pre-refunded to 1/01/02) 2,000,000 New York State Thruway Authority, Local Highway and 4/02 at 102 AAA 2,149,480 Bridge Service Contract Bonds, Series 1992, 6.000%, 4/01/10 (Pre-refunded to 4/01/02) 485,000 Suffolk County Water Authority (New York), Waterworks Revenue No Opt. Call AAA 574,206 Bonds, Series 1986-V, 6.750%, 6/01/12 - ---------------------------------------------------------------------------------------------------------------------------------- UTILITIES - 3.6% 1,945,000 New York State Power Authority, General Purpose Bonds, 1/02 at 102 AAA 2,088,133 Series 1992 AA, 6.250%, 1/01/23 - ---------------------------------------------------------------------------------------------------------------------------------- WATER AND SEWER - 9.9% 4,900,000 New York City Municipal Water Finance Authority, 6/02 at 101 1/2 AAA 5,094,333 Water and Sewer System Revenue Bonds, Fiscal 1993 Series A, 5.750%, 6/15/18 620,000 New York City Municipal Water Finance Authority, 6/01 at 100 AAA 650,063 Water And Sewer System Revenue Bonds, Fiscal 1992 Series A, 6.250%, 6/15/21 - ---------------------------------------------------------------------------------------------------------------------------------- $ 52,385,000 Total Investments - (cost $52,269,156) - 98.1% 57,191,341 =============--------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.9% 1,111,489 - ---------------------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $58,302,830 ================================================================================================================================== All of the bonds in the portfolio are either covered by Original Issue Insurance, Secondary Market 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 (not covered by the report of independent auditors): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings (not covered by the report of independent auditors): Using the higher of Standard & Poor's or Moody's rating. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF NET ASSETS MARCH 31, 1999 INSURED INSURED CALIFORNIA NEW YORK SELECT SELECT SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE - ---------------------------------------------------------------------------------------------------------------------------- ASSETS Investments in municipal securities, at market value (note 1) $251,052,526 $267,186,906 $191,299,200 $96,365,655 $57,191,341 Temporary investments in short-term municipal securities, at amortized cost, which approximates market value (note 1) -- 1,000,000 1,200,000 700,000 -- Cash -- -- -- 127,975 614,183 Receivables: Interest 5,154,674 4,720,566 3,118,907 1,453,196 803,331 Investments sold 95,000 228,769 -- -- -- Other assets 25,642 27,106 24,331 15,331 14,259 - ---------------------------------------------------------------------------------------------------------------------------- Total assets 256,327,842 273,163,347 195,642,438 98,662,157 58,623,114 - ---------------------------------------------------------------------------------------------------------------------------- LIABILITIES Cash overdraft 237,705 420,783 425,947 -- -- Payable for investments purchased -- -- -- 2,662,341 -- Accrued expenses: Surveillance and administration fees (note 6) 52,700 67,345 48,746 24,338 14,864 Other 174,405 159,009 121,500 61,434 51,461 Dividends payable 1,228,357 1,276,438 881,561 412,966 253,959 - ---------------------------------------------------------------------------------------------------------------------------- Total liabilities 1,693,167 1,923,575 1,477,754 3,161,079 320,284 - ---------------------------------------------------------------------------------------------------------------------------- Net assets (note 7) $254,634,675 $271,239,772 $194,164,684 $95,501,078 $58,302,830 ============================================================================================================================ Shares outstanding 16,378,097 17,607,068 12,964,123 6,257,068 3,907,068 ============================================================================================================================ Net asset value per share outstanding (net assets divided by shares outstanding) $ 15.55 $ 15.41 $ 14.98 $ 15.26 $ 14.92 ============================================================================================================================ SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1999 INSURED INSURED CALIFORNIA NEW YORK SELECT SELECT SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE - ---------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME (NOTE 1) $15,725,652 $16,475,098 $11,425,548 $5,388,393 $3,324,326 - ---------------------------------------------------------------------------------------------------------------------------------- EXPENSES Surveillance and administration fees (note 6) 622,930 795,267 575,140 286,569 175,438 Shareholders' servicing agent fees and expenses 50,050 47,993 36,842 13,253 9,134 Custodian's fees and expenses 53,154 54,384 47,872 35,886 33,031 Trustees' fees and expenses (note 6) 21,646 22,885 16,362 8,111 5,095 Professional fees 16,330 16,378 16,144 14,669 14,567 Shareholders' reports - printing and mailing expenses 98,008 99,175 72,540 31,560 24,703 Stock exchange listing fees 24,262 24,262 24,262 16,170 16,170 Investor relations expense 24,075 24,773 17,998 7,767 5,114 Other expenses 12,631 12,318 9,451 5,476 4,187 - ---------------------------------------------------------------------------------------------------------------------------------- Total expenses 923,086 1,097,435 816,611 419,461 287,439 - ---------------------------------------------------------------------------------------------------------------------------------- Net investment income 14,802,566 15,377,663 10,608,937 4,968,932 3,036,887 - ---------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investment transactions (notes 1 and 4) 50,661 1,568 -- 102,624 (639) Net change in unrealized appreciation or depreciation of investments (1,343,004) (572,900) 325,764 220,687 63,716 - ---------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) from investments (1,292,343) (571,332) 325,764 323,311 63,077 - ---------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations $13,510,223 $14,806,331 $10,934,701 $5,292,243 $3,099,964 ================================================================================================================================== SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
SELECT TAX-FREE SELECT TAX-FREE 2 SELECT TAX-FREE 3 ----------------------------- ----------------------------- ---------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 3/31/99 3/31/98 3/31/99 3/31/98 3/31/99 3/31/98 - ----------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 14,802,566 $ 14,826,057 $ 15,377,663 $ 15,413,609 $ 10,608,937 $ 10,628,855 Net realized gain (loss) from investment transactions (notes 1 and 4) 50,661 (17,707) 1,568 (20,819) -- -- Net change in unrealized appreciation or depreciation of investments (1,343,004) 7,729,748 (572,900) 8,791,112 325,764 7,940,296 - ---------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations 13,510,223 22,538,098 14,806,331 24,183,902 10,934,701 18,569,151 - ---------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM UNDISTRIBUTED NET INVESTMENT INCOME (NOTE 1) (14,740,297) (14,765,019) (15,318,159) (15,608,661) (10,669,473) (10,734,291) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets (1,230,074) 7,773,079 (511,828) 8,575,241 265,228 7,834,860 Net assets at beginning of year 255,864,749 248,091,670 271,751,600 263,176,359 193,899,456 186,064,596 - ---------------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $254,634,675 $255,864,749 $271,239,772 $271,751,600 $194,164,684 $193,899,456 ================================================================================================================================== Balance of undistributed net investment income at end of year $ 194,939 $ 132,670 $ 107,446 $ 47,942 $ 43,553 $ 19,044 ================================================================================================================================== INSURED CALIFORNIA SELECT TAX-FREE INSURED NEW YORK SELECT TAX-FREE ------------------------------------ -------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 3/31/99 3/31/98 3/31/99 3/31/98 - ---------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $4,968,932 $ 4,981,811 $ 3,036,887 $ 3,046,992 Net realized gain (loss) from investment transactions (notes 1 and 4) 102,624 2,045 (639) (1,028) Net change in unrealized appreciation or depreciation of investments 220,687 4,310,650 63,716 2,470,172 - ---------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations 5,292,243 9,294,506 3,099,964 5,516,136 - ---------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM UNDISTRIBUTED NET INVESTMENT INCOME (NOTE 1) (4,955,598) (5,024,425) (3,047,515) (3,047,514) - ---------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets 336,645 4,270,081 52,449 2,468,622 Net assets at beginning of year 95,164,433 90,894,352 58,250,381 55,781,759 - ---------------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $95,501,078 $95,164,433 $58,302,830 $58,250,381 ================================================================================================================================== Balance of undistributed net investment income at end of year $ 22,833 $ 9,499 $ 71,493 $ 82,121 ==================================================================================================================================
NOTES TO FINANCIAL STATEMENTS 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. 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 no 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 the when-issued and delayed delivery purchase commitments. At March 31, 1999, Insured California Select Tax-Free had outstanding when-issued purchase commitments of $2,662,341. There were no such outstanding purchase commitments in any of the other Trusts. INVESTMENT INCOME Interest income is determined on the basis of interest accrued, adjusted for amortization of premiums and accretion of discounts on long-term debt 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 Insured California Select Tax-Free and from New York state income taxes for Insured New York Select Tax-Free, to retain such tax-exempt status when distributed to shareholders of the Trusts. All income dividends paid during the fiscal year ended March 31, 1999, have been designated Exempt Interest Dividends. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Tax-exempt net investment income is declared monthly as a dividend and payment is made or reinvestment is credited to shareholder accounts on the first 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 carryforwards. 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 Insured California Select Tax-Free and Insured New York Select Tax-Free 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 derivative financial instruments. 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. Actual results may differ from those estimates. 2. TRUST SHARES There were no share transactions during the fiscal year ended March 31, 1999, nor during the fiscal year ended March 31, 1998, in any of the Trusts. 3. DISTRIBUTIONS TO SHAREHOLDERS The Trusts declared dividend distributions from their tax-exempt net investment income which were paid May 3, 1999, to shareholders of record on April 15, 1999, as follows:
INSURED INSURED CALIFORNIA NEW YORK SELECT SELECT SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE - --------------------------------------------------------------------------------------------------------- Dividend per share $.0750 $.0725 $.0680 $.0660 $.0650 =========================================================================================================
4. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities and temporary municipal securities during the fiscal year ended March 31, 1999, were as follows:
INSURED INSURED CALIFORNIA NEW YORK SELECT SELECT SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE - --------------------------------------------------------------------------------------------------------- Purchases: Long-term municipal securities $3,402,295 $2,579,976 $ -- $2,662,341 $ -- Temporary municipal securities 6,900,000 8,785,000 4,200,000 2,400,000 6,000,000 Sales and Maturities: Long-term municipal securities 3,121,240 2,235,000 230,000 518,060 15,000 Temporary municipal securities 6,900,000 8,785,000 3,500,000 1,900,000 6,565,000 =========================================================================================================
At March 31, 1999, the identified cost of investments owned for federal income tax purposes was the same as the cost for financial reporting purposes for each Trust. NOTES TO FINANCIAL STATEMENTS (continued) At March 31, 1999, the Trusts had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
INSURED INSURED CALIFORNIA NEW YORK SELECT SELECT SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE - --------------------------------------------------------------------------------------------------------- Expiration year: 2001 $ -- $ -- $ 200,114 $193,438 $618,333 2002 -- -- 15,243 -- 432 2003 -- -- -- -- 1,954 2004 79,117 -- 170,137 -- 321,550 2005 31,707 44,455 674,505 -- 1,480 2006 24,357 44,578 3,603 -- 828 2007 -- -- -- -- 933 - --------------------------------------------------------------------------------------------------------- Total $135,181 $89,033 $1,063,602 $193,438 $945,510 =========================================================================================================
5. UNREALIZED APPRECIATION (DEPRECIATION) Gross unrealized appreciation and gross unrealized depreciation of investments at March 31, 1999, were as follows:
INSURED INSURED CALIFORNIA NEW YORK SELECT SELECT SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE - --------------------------------------------------------------------------------------------------------- Gross unrealized: appreciation $26,784,369 $25,363,768 $16,689,689 $8,486,844 $4,922,185 depreciation -- (60) -- -- -- - --------------------------------------------------------------------------------------------------------- Net unrealized appreciation $26,784,369 $25,363,708 $16,689,689 $8,486,844 $4,922,185 =========================================================================================================
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:
SELECT TAX-FREE 2 SELECT TAX-FREE 3 INSURED CALIFORNIA SELECT TAX-FREE AVERAGE DAILY NET ASSET VALUE SELECT TAX-FREE INSURED NEW YORK SELECT TAX-FREE - --------------------------------------------------------------------------------------------------------- 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 of its 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 or its affiliates. 7. COMPOSITION OF NET ASSETS At March 31, 1999, each Trust had an unlimited number of $.01 par value shares of beneficial interest authorized. Net assets consisted of:
INSURED INSURED CALIFORNIA NEW YORK SELECT SELECT SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE - -------------------------------------------------------------------------------------------------------------------------- Capital paid-in $ 163,781 $ 176,071 $ 129,641 $ 62,571 $ 39,071 Paid-in surplus 227,626,767 245,681,943 178,365,403 87,122,268 54,215,788 Balance of undistributed net investment income 194,939 107,446 43,553 22,833 71,493 Accumulated net realized gain (loss) from investment transactions (135,181) (89,396) (1,063,602) (193,438) (945,707) Net unrealized appreciation of investments 26,784,369 25,363,708 16,689,689 8,486,844 4,922,185 - -------------------------------------------------------------------------------------------------------------------------- Net assets $254,634,675 $271,239,772 $194,164,684 $95,501,078 $58,302,830 ==========================================================================================================================
8. INVESTMENT COMPOSITION At March 31, 1999, the revenue sources by municipal purpose, expressed as a percent of total investments, were as follows:
INSURED INSURED CALIFORNIA NEW YORK SELECT SELECT SELECT SELECT SELECT TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE - --------------------------------------------------------------------------------------------------------- Education and Civic Organizations 3% 6% 3% 2% 21% Forest and Paper Products 2 3 -- -- -- Health Care 9 8 9 8 5 Housing/Multifamily 8 9 10 -- 5 Housing/Single Family 8 7 4 -- -- Tax Obligation/General 6 1 3 7 3 Tax Obligation/Limited 10 7 4 18 5 Transportation 8 6 11 12 5 U.S. Guaranteed 44 48 39 36 43 Utilities 1 -- 11 11 3 Water and Sewer 1 3 6 6 10 Other -- 2 -- -- -- - -------------------------------------------------------------------------------------------------------- 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 (51% for Select Tax-Free, 61% for Select Tax-Free 2, 47% for Select Tax-Free 3, 100% for Insured California Select Tax-Free, and 100% for Insured New York Select Tax-Free). Such insurance or escrow, however, does not guarantee the market value of the municipal securities or the value of any of the Trusts' shares. All of the temporary investments in short-term municipal securities have credit enhancements (letters of credit, guarantees or insurance) issued by third party domestic or foreign banks or other institutions. For additional information regarding each investment security, refer to the Portfolio of Investments of each Trust. FINANCIAL HIGHLIGHTS Selected data for a share outstanding throughout each period is as follows:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS ---------------------------------- -------------------------------------------- NET REALIZED/ BEGINNING NET UNREALIZED NET NET ASSET INVESTMENT INVESTMENT INVESTMENT CAPITAL VALUE INCOME GAIN (LOSS) TOTAL INCOME GAINS TOTAL - -------------------------------------------------------------------------------------------------------------------------------- SELECT TAX-FREE Year Ended 3/31: 1999 $15.62 $.90 $(.07) $ .83 $(.90) $-- $(.90) 1998 15.15 .90 .47 1.37 (.90) -- (.90) 1997 15.07 .90 .10 1.00 (.92) -- (.92) 1996 14.71 .91 .39 1.30 (.94) -- (.94) 1995 14.68 .91 .11 1.02 (.95) (.04) (.99) 1994 15.03 .91 (.31) .60 (.95) -- (.95) SELECT TAX-FREE 2 Year Ended 3/31: 1999 15.43 .87 (.02) .85 (.87) -- (.87) 1998 14.95 .88 .49 1.37 (.89) -- (.89) 1997 14.92 .88 .04 .92 (.89) -- (.89) 1996 14.57 .88 .38 1.26 (.91) -- (.91) 1995 14.55 .89 .04 .93 (.91) -- (.91) 1994 14.76 .88 (.18) .70 (.91) -- (.91) SELECT TAX-FREE 3 Year ended 3/31: 1999 14.96 .82 .02 .84 (.82) -- (.82) 1998 14.35 .82 .62 1.44 (.83) -- (.83) 1997 14.23 .82 .13 .95 (.83) -- (.83) 1996 13.90 .83 .34 1.17 (.84) -- (.84) 1995 13.83 .80 .11 .91 (.84) -- (.84) 1994 14.27 .82 (.42) .40 (.84) -- (.84) INSURED CALIFORNIA SELECT TAX-FREE Year ended 3/31: 1999 15.21 .79 .05 .84 (.79) -- (.79) 1998 14.53 .79 .69 1.48 (.80) -- (.80) 1997 14.42 .80 .11 .91 (.80) -- (.80) 1996 14.16 .80 .27 1.07 (.81) -- (.81) 1995 13.92 .80 .26 1.06 (.82) -- (.82) 1994 14.53 .79 (.58) .21 (.82) -- (.82) INSURED NEW YORK SELECT TAX-FREE Year ended 3/31: 1999 14.91 .78 .01 .79 (.78) -- (.78) 1998 14.28 .78 .63 1.41 (.78) -- (.78) 1997 14.25 .78 .03 .81 (.78) -- (.78) 1996 14.04 .78 .21 .99 (.78) -- (.78) 1995 13.86 .77 .19 .96 (.78) -- (.78) 1994 14.37 .76 (.49) .27 (.78) -- (.78) TOTAL RETURN --------------------------- ENDING ENDING BASED ON BASED ON NET ASSET MARKET MARKET NET ASSET VALUE VALUE VALUE* VALUE - ------------------------------------------------------------------------------------- SELECT TAX-FREE Year Ended 3/31: 1999 $15.55 $16.3750 9.02% 5.43% 1998 15.62 15.8750 14.06 9.24 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 SELECT TAX-FREE 2 Year Ended 3/31: 1999 15.41 15.8750 9.51 5.63 1998 15.43 15.3125 14.92 9.34 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 SELECT TAX-FREE 3 Year ended 3/31: 1999 14.98 15.2500 7.78 5.76 1998 14.96 14.9375 19.38 10.24 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 INSURED CALIFORNIA SELECT TAX-FREE Year ended 3/31: 1999 15.26 15.7500 8.22 5.65 1998 15.21 15.3125 16.52 10.41 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 INSURED NEW YORK SELECT TAX-FREE Year ended 3/31: 1999 14.92 15.1250 6.14 5.40 1998 14.91 15.0000 18.31 10.07 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 RATIOS/SUPPLEMENTAL DATA ----------------------------------------------------- RATIO OF NET RATIO OF INVESTMENT ENDING EXPENSES TO INCOME TO PORTFOLIO NET ASSETS AVERAGE AVERAGE TURNOVER (000) NET ASSETS NET ASSETS RATE - ------------------------------------------------------------------------------------ SELECT TAX-FREE Year Ended 3/31: 1999 $254,635 .36% 5.78% 1% 1998 255,865 .36 5.83 1 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 SELECT TAX-FREE 2 Year Ended 3/31: 1999 271,240 .40 5.65 1 1998 271,752 .40 5.72 -- 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 SELECT TAX-FREE 3 Year ended 3/31: 1999 194,165 .42 5.45 -- 1998 193,899 .42 5.56 -- 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 INSURED CALIFORNIA SELECT TAX-FREE Year ended 3/31: 1999 95,501 .44 5.20 1 1998 95,164 .44 5.31 -- 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 -- INSURED NEW YORK SELECT TAX-FREE Year ended 3/31: 1999 58,303 .49 5.19 -- 1998 58,250 .49 5.30 -- 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 --
* 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. REPORT OF INDEPENDENT AUDITORS THE BOARD OF TRUSTEES AND SHAREHOLDERS NUVEEN SELECT TAX-FREE INCOME PORTFOLIO NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2 NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3 NUVEEN INSURED CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO NUVEEN INSURED NEW YORK SELECT TAX-FREE INCOME PORTFOLIO We have audited the accompanying statements of net assets, including the portfolios of investments, of Nuveen Select Tax-Free Income Portfolio, Nuveen Select Tax-Free Income Portfolio 2, Nuveen Select Tax-Free Income Portfolio 3, Nuveen Insured California Select Tax-Free Income Portfolio, and Nuveen Insured New York Select Tax-Free Income Portfolio as of March 31, 1999, and the related statements of operations, changes in net assets and the financial highlights for the periods indicated therein. These financial statements and financial highlights are the responsibility of the Trusts' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of investments owned as of March 31, 1999, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Nuveen Select Tax-Free Income Portfolio, Nuveen Select Tax-Free Income Portfolio 2, Nuveen Select Tax-Free Income Portfolio 3, Nuveen Insured California Select Tax-Free Income Portfolio, and Nuveen Insured New York Select Tax-Free Income Portfolio at March 31, 1999, and the results of their operations, changes in their net assets and financial highlights for the periods indicated therein in conformity with generally accepted accounting principles. Ernst & Young LLP Chicago, Illinois May 14, 1999 Fund Information BOARD OF TRUSTEES James E. Bacon Jack B. Evans 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, TRANSFER AGENT AND SHAREHOLDER SERVICES The Chase Manhattan Bank 4 New York Plaza New York, NY 10004-2413 (800) 257-8787 LEGAL COUNSEL Chapman and Cutler Chicago, IL INDEPENDENT AUDITORS Ernst & Young LLP Chicago, IL YEAR 2000 The concern that computer systems may have problems processing date-related information in the year 2000 and beyond has challenged businesses and organizations to thoroughly review all aspects of their operations. We have undertaken just such an approach at Nuveen in preparation for the millennium. Over the last 10 years, we have updated or replaced our trading, fund management, and pricing systems at Nuveen - systems that directly affect our investors and their financial advisers - to address Year 2000 concerns. We continue to work closely with our transfer agent, custodian, firms through whom we buy and sell portfolio securities, and other service partners to monitor the Year 2000 readiness of their systems, while addressing other remaining systems issues. In addition, the Funds hold securities of issuers whose business operations leave them susceptible to Year 2000 concerns. We seek to evaluate an issuer's Year 2000 readiness as part of our initial and ongoing research of these issuers. This is only one of the many factors considered in determining whether to buy, sell, or continue holding a particular security. We anticipate that all significant components of our Year 2000 review, repair, and testing program will be complete by mid-1999. This includes appropriate industry-wide testing of critical systems and receipt of satisfactory assurances from critical service providers, vendors, and issuers regarding their Year 2000 readiness. We are also making Year 2000 contingency plans to guide recovery efforts in the event that, despite our remediation attempts, Year 2000 issues adversely affect the Funds. Although we cannot give complete assurance at this time that the steps we take will be sufficient to prevent any problems that would impact the Nuveen Exchange-Traded Funds, we can assure you that we will take all reasonable steps to prevent disruption of the services provided by your Fund. Each Portfolio intends to repurchase shares of its own common stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the 12-months ended March 31, 1999. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 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 quality investments designed for individuals seeking to build and sustain wealth. In fact, more than 1.3 million investors have trusted Nuveen to help them pursue their financial goals. The cornerstone of Nuveen's investment philosophy is a commitment to disciplined long-term investment strategies focused on providing 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 ensure that they continue to meet our exacting standards. Whether your focus is long-term growth, dependable current income or sustaining accumulated wealth, Nuveen offers a wide variety of investments and services to help meet your unique circumstances and financial planning needs. Our equity, balanced, and tax-free income funds, along with our defined portfolios and private asset management, can help you build a better, well-diversified portfolio. Talk with your financial adviser to learn more about how Nuveen investment products and services can help you. Or call us at (800) 257-8787 for more information, including a prospectus where applicable. Please read that information carefully before investing. LOGO: NUVEEN helping investors sustain the wealth of a lifetime(tm). John Nuveen & Co. Incorporated 333 West Wacker Drive Chicago, IL 60606-1286 www.nuveen.com PAN-1-3-99 -----END PRIVACY-ENHANCED MESSAGE-----