-----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, QDlvXF16z8ypy/DlPFec35WbnfZgzGM2fEQzkF2UQCHhb1GoD5cBzjx3FnIgwLYz 4yAnqojpNYPCr+5LkzOXJg== 0000891804-98-002491.txt : 19981203 0000891804-98-002491.hdr.sgml : 19981203 ACCESSION NUMBER: 0000891804-98-002491 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981202 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN INSURED CALIFORNIA SELECT TAX FREE INCOME PORTFOLIO CENTRAL INDEX KEY: 0000885732 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MA FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-06623 FILM NUMBER: 98762802 BUSINESS ADDRESS: STREET 1: 333 W WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178200 FORMER COMPANY: FORMER CONFORMED NAME: NUVEEN CALIFORNIA SELECT TAX FREE INCOME PORTFOLIO DATE OF NAME CHANGE: 19600201 N-30D 1 NUVEEN INS CALIFORNIA SEL TAX-FREE IN PORT(NXC) NUVEEN Exchange-Traded Funds September 30, 1998 Semiannual Report Dependable, tax-free income to help you keep more of what you earn. NXP NXQ NXR NXC NXN Select Portfolios Photo of: 3 people sitting on steps of museum. Highlights As of September 30, 1998 * Overall rating within the municipal bond category for the period ended September 30, 1998. Morningstar proprietary ratings reflect historical risk-adjusted performance and are subject to change every month. Ratings are calculated from a fund's three-, five- and 10-year average annual returns in excess of 90-day Treasury bill returns, with appropriate fee adjustments and a risk factor that reflects fund performance below 90-day Treasury bill returns. NXP, NXQ, and NXR earned 4 stars for the 3-year and 5-year period ended September 30, 1998. In an investment category, 10% of the funds receive 5 stars and 22.5% receive 4 stars. 195 municipal bond funds were rated for the 3-year period and 187 for the five-year period, each ended September 30, 1998. 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 Building Better Portfolios 37 Fund Information ================================================================================ Nuveen Select Tax-Free Income Portfolio (NXP) o **** Four-Star Rating by Morningstar, Inc.* o 1-year Taxable-Equivalent Total Return on Share Price of 15.78% for Investors in the 31% Federal Income Tax Bracket o Taxable-Equivalent Yield of 7.90% for Investors in the 31% Federal Income Tax Bracket Pie Chart: AAA/U.S. Guaranteed 57% AA 9% A 22% BBB/NR 12% Nuveen Select Tax-Free Income Portfolio 2 (NXQ) o **** Four-Star Rating by Morningstar, Inc.* o 1-year Taxable-Equivalent Total Return on Share Price of 15.37% for Investors in the 31% Federal Income Tax Bracket o Taxable-Equivalent Yield of 7.75% for Investors in the 31% Federal Income Tax Bracket Pie Chart: AAA/U.S. Guaranteed 62% AA 11% A 14% BBB/NR 13% Nuveen Select Tax-Free Income Portfolio 3 (NXR) o **** Four-Star Rating by Morningstar, Inc.* o 1-year Taxable-Equivalent Total Return on Share Price of 18.98% for Investors in the 31% Federal Income Tax Bracket o Taxable-Equivalent Yield of 7.62% for Investors in the 31% Federal Income Tax Bracket Pie Chart: AAA/U.S. Guaranteed 46% AA 27% A 15% BBB/NR 12% Nuveen Insured California Select Tax-Free Income Portfolio (NXC) o 1-year Taxable-Equivalent Total Return on Share Price of 16.26% for Investors in the Combined 37.4% Federal and California State Income Tax Bracket o Taxable-Equivalent Yield of 8.00% for Investors in the Combined 37.4% Federal and California State Income Tax Bracket o Stable Tax-Free Dividend for 7 Consecutive Months Pie Chart: Insured 79% U.S. Guaranteed 21% Nuveen Insured New York Select Tax-Free Income Portfolio (NXN) o 1-year Taxable-Equivalent Total Return on Share Price of 11.02% for Investors in the Combined 35.7% Federal and New York State Income Tax Bracket o Taxable-Equivalent Yield of 8.02% for Investors in the Combined 35.7% Federal and New York State Income Tax Bracket o Stable Tax-Free Dividend for 66 Consecutive Months Pie Chart: Insured 66% U.S. Guaranteed 34% Dear Shareholder Photo of: Timothy R. Schwertfeger Chairman of the Board Sidebar text: Wealth takes a lifetime to build. Once achieved, it should be preserved. I'm pleased to report that over the past 12 months, the Nuveen Select Portfolios have continued to perform well, meeting their primary objective of providing you with competitive levels of tax-free income. The Select Portfolios are a uniquely structured group of investments designed to achieve income stability over a defined term. These portfolios were established in 1992 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 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 strong market in fixed-income securities during the year, bolstered by investor demand for quality investments like our Select Portfolios benefited the funds. Competitive tax-free income, enhanced by strong share price performance, illustrates once again that municipal bonds provide an excellent investment for income-oriented investors. The Economy in Review Over the past year, the markets endured bouts of volatility, as the Asian financial crisis spilled over into emerging markets and affected economies around the globe. Investors responded by seeking a haven from the ongoing uncertainty in more conservative investments, such as municipal bond funds. As interest rates on municipal bonds continued to trend downward, the competitive yields offered by our exchange-traded portfolios stimulated additional investor interest. The market for exchange-traded municipal bond funds has been exceptionally strong. Exchange-traded funds continue to represent a bright spot among fixed-income investments. These funds have paid competitive current market yields in a market that places a high premium on yield. As of September 30, 1998, the yields for the Nuveen Insured California Select Tax-Free Income Portfolio (NXC) and the Nuveen Insured New York Select Tax-Free Income Portfolio (NXN) were 5.01% and 5.16%, respectively. The yields for the Nuveen Select Tax-Free Income Portfolio (NXP), Nuveen Select Tax-Free Income Portfolio 2 (NXQ), and Nuveen Select Tax-free Income Portfolio 3 (NXR) were 5.45%, 5.35%, and 5.26%, respectively. In the coming months, we will continue to watch several key factors affecting the future of the economy, including the strength of the dollar, employment figures, corporate earnings reports, and further interest rate indications from the Federal Reserve. These factors will influence the outlook for fixed-income markets during the remainder of the year. Municipal Market Review Over the past year, the declining interest rate environment drove yields on 30-year Treasuries to their lowest levels since the U.S. government began selling these bonds in 1977. The story in the municipal market, however, was quite different. As yields on the long Treasury bond reached historic lows, the yield on the Bond Buyer 40, an unmanaged index of long-term municipal bonds, fell just 49 basis points - from 5.53% to 5.04% - compared with the dramatic 113-basis point drop in Treasury yields over the past 12 months. As of September 24, 1998, the ratio between Treasury yields and municipal yields stood at 100.6%, compared with the more typical range of 80-90%. For investors, this means that municipal bonds offered 100.6% of the yield of a Treasury bond with comparable characteristics - before taxes are taken into account. On an after-tax basis, municipal bonds present an even more attractive investment option in relation to Treasuries. One of the main factors in the steep decline in Treasury yields was the strong interest in these investments by international investors. As the economic turmoil in Asia continued to spread to other economies world-wide and the dollar strengthened against foreign currencies, the demand for U.S.-dollar denominated Treasury securities increased. In the municipal market, where foreign demand was limited by the inapplicability of tax advantages, low interest rates and a strong economy combined to generate high levels of new issuance and a dramatic increase in the refinancing of existing bonds. The first six months of 1998 saw $146 billion of new municipal bond issuance, up 51% over the same period in 1997, and $42 billion in refunding activity, an increase of 118% from last year. The continued strength of the U.S. economy has brought about improvements in the fundamental financial health of many municipalities and boosted the overall credit quality of municipal bonds. This enhanced credit quality also contributed to the fund's performance, as the upgraded bonds increased in value. Nuveen Expertise Is Key The key to taking advantage of the exceptional values currently available in the municipal market is the expertise of a proven investment manager. At Nuveen, we recognize the value of time-tested expertise. The high level of recent municipal issuance, for example, highlights the value of Nuveen's detailed knowledge of the municipal market, as our portfolio management teams carefully analyze the flood of issues to select those securities best suited to helping the funds achieve their investment objectives. In addition, Nuveen has assembled a group of Premier AdvisersSM that can provide years of experience and insight dealing with a given asset class. In addition to Nuveen Advisory Corporation, our Premier Adviser for tax-free investing, you can rely on our growing group of other advisers to provide the expertise that makes the difference in the equity market, including Institutional Capital Corporation for value investing and Rittenhouse Financial Services for growth investing. For more information about our funds, including charges and expenses, contact your financial adviser for a prospectus, or call Nuveen at (800) 621-7227. Read it carefully before you invest or send money. We encourage you to talk with your financial adviser about the ways Nuveen's expanding selection of investments, together with our 100 years of market experience, can help you establish the foundation of a diversified portfolio designed to build and sustain long-term financial security. When seeking quality investment solutions that withstand the test of time, you can count on Nuveen. Our expertise provides the key to building a well-balanced portfolio that can help you achieve your financial goals. Sincerely, Timothy R. Schwertfeger Chairman of the Board November 17, 1998 Sidebar text: "Our expertise provides the key to building a well-balanced portfolio that can help you achieve your financial goals." Nuveen Select Portfolios Portfolio Manager Roundtable Portfolio managers Dan Solender and Mike Davern discuss the current municipal market environment, portfolio performance, and the outlook for the Nuveen Select Portfolios. Dan and Mike assumed management responsibilities for the portfolios on July 1, 1998, as part of Nuveen's efforts to maximize the efficient use of staff resources and portfolio manager expertise. Dan is a six-year veteran of Nuveen with 11 years of investment experience; his management duties include the national and New York Select Portfolios as well as additional New York municipal bond funds. Mike, who joined Nuveen in 1996, has 15 years of experience as an investment professional and manages a range of Nuveen state municipal bond funds in addition to the California Select Portfolio. Municipal Market Update The third quarter of 1998 saw an acceleration of trends that have been apparent in the credit markets over the past 12 months: declining interest rates and an increased ratio between municipal and Treasury yields. The cause in both cases was heightened concern about the condition of the global financial system. While the U.S. economy exhibited continued growth, the impact of the financial turmoil in Southeast Asia, Russia, and other emerging markets began to be felt in the U.S. equity market. A desire to cushion this impact and avert a domestic credit crunch prompted the Federal Reserve to ease short-term interest rates in late September, the first rate cut in almost three years. Concerned that the quarter-point cut might not be enough, the Fed acted to reduce rates again in mid-October and in mid-November, bringing the federal funds rate to 4.75%. The Fed indicated these moves were intended to keep inflation low and to sustain U.S. economic growth going forward. In response to this environment of low interest rates and continued economic growth, municipal bond issuance over the past year has been among the heaviest in years. In recent months, volatility in the equity markets has boosted demand for municipal bonds as well. Demand from institutional buyers such as insurance companies has also increased, as these investors recognized the exceptionally attractive values currently offered by municipal bonds. Fund Performance For the 12 months ended September 30, 1998, the national Nuveen Select Portfolios produced total returns on net asset value that ranged from 6.79% to 7.74%, providing taxable-equivalent returns of 9.45% to 10.31% for investors in the 31% federal income tax bracket. For the same period, the Nuveen Insured California Select Tax-Free Income Portfolio (NXC) posted a total return of 7.75% on net asset value, while the Nuveen Insured New York Select Tax-Free Income Portfolio (NXN) returned 7.35%, providing investors in the combined federal and state income tax bracket (California 37.4%; New York 35.7%) with taxable-equivalent returns of 10.99% and 10.34%, respectively. These total returns compare with the Lehman Brothers Municipal Bond Index's annual return of 8.71% (the benchmark for NXP, NXQ, and NXR), the Lehman California Insured Municipal Bond Index's 9.79% (for NXC), and the Lehman New York Insured Municipal Bond Index's 9.43% (for NXN). Much of the portfolios' performance over the past 12 months can be tied to duration. Duration measures a bond portfolio's price volatility, or reaction to interest rate movements. The longer the duration, the more sensitive the portfolio is to changes in interest rates. During a period of falling interest rates, longer duration enables a portfolio to participate more fully in market gains. However, when rates rise, longer duration can make the portfolio more vulnerable to potential price declines. As interest rates trended downward, portfolios with durations shorter than the relevant index generally tended to underperform the market. The following chart illustrates the durations of the funds and the applicable Lehman Brothers Index, as of September 30, 1998. - ---------------------------------------------------------------- Lehman Lehman Lehman Brothers Brothers Brothers Duration Duration Duration Fund Duration (National) (CA Insured) (NY Insured) - ---------------------------------------------------------------- NXP 3.93 years 7.17 years n/a n/a - ---------------------------------------------------------------- NXQ 3.60 years 7.17 years n/a n/a - ---------------------------------------------------------------- NXR 4.04 years 7.17 years n/a n/a - ---------------------------------------------------------------- NXC 3.70 years n/a 8.70 years n/a - ---------------------------------------------------------------- NXN 3.93 years n/a n/a 8.15 years - ---------------------------------------------------------------- In the low interest rate environment of the past year, good call protection helped support the dividends of NXP, NXR, and NXN and protect the income of these funds from erosion. These three funds have now provided shareholders with 17, 27, and 66 consecutive months, respectively, of steady income. However, declining interest rates also played a role in reducing the income levels of NXQ and NXC, as proceeds from higher-yielding bonds called or sold from these portfolios were reinvested in bonds paying today's lower interest rates. Over the past year, the change in income level earned by these portfolios necessitated dividend reductions. Despite the adjustments in these two funds, the Select Portfolios continue to provide very competitive current market yields ranging from 5.01% to 5.45%, equivalent to taxable yields of 7.26% to 7.90% for investors in the 31% federal tax bracket. Taking into account the state taxes in California and New York, the taxable-equivalent yields for NXC and NXN were 8.00% and 8.02%, respectively. As Tim mentioned in his letter to shareholders, share price performance among the Nuveen exchange-traded portfolios has been strong over the past 12 months. As interest rates fell, active demand for quality portfolios such as the Nuveen Select Portfolios benefited share prices and eliminated the slight discounts to net asset value of a year ago. As of September 30, 1998, all of the portfolios were trading at premiums ranging from 0.30% to 4.83% above their net asset values. Key Strategies The Select Portfolios are a uniquely structured group of investments designed and managed to achieve income stability over a defined term. The portfolios provide income and maturity similar to that of individual bonds, with the additional benefit of ongoing credit surveillance. Maintaining stable tax-free dividends is the top priority for each of these portfolios, and our strategies continue to focus on achieving this objective. We buy and sell bonds within these portfolios only to take advantage of opportunities to enhance income, credit quality, or portfolio structure. Over the past 12 months, such trading was effectively limited by the prevailing environment of falling interest rates and low yields because all of the bonds in these portfolios were purchased at higher rates than those currently being offered. The portfolios' short durations offered excellent protection from price volatility. Outlook for the Future The current market environment - influenced by declining interest rates, benign inflation, and strong municipal supply - has helped to position municipal bonds as one of the most compelling values in today's marketplace. We expect that the excellent municipal-to-Treasury ratio, combined with continued volatility in the equity markets and investors' increasing awareness of the need for asset allocation rebalancing, will result in growing demand for these bonds. 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, as the market recognizes the value of these quality investments. Looking ahead for the Select Portfolios, our focus will continue to be on supporting the stability of the portfolios' income streams, especially if we remain in a lower interest rate environment. Beginning in 2001, many of the bonds in the Select Portfolios will become callable by their issuers. If interest rates remain lower than they were when the portfolios were assembled in 1992, our goal will be to pre-empt some of these calls by selling bonds prior to their call dates and replacing them with high-quality bonds offering attractive yields. Nuveen's expertise as an experienced investment manager knowledgeable about the unique aspects of the municipal bond market is key to our ability to select the right securities for our portfolios and add value for our investors. Nuveen Select Tax-Free Income Portfolio Performance Overview As of September 30, 1998 NXP Portfolio Statistics ================================================== Inception Date 3/92 - -------------------------------------------------- Share Price $16 1/2 - -------------------------------------------------- Net Asset Value Per Share $15.74 - -------------------------------------------------- Current Market Yield 5.45% - -------------------------------------------------- Taxable-Equivalent Yield(1) 7.90% - -------------------------------------------------- Fund Net Assets ($000) $257,781 - -------------------------------------------------- Average Weighted Maturity (Years) 17.25 - -------------------------------------------------- Modified Duration (Years) 3.93 - -------------------------------------------------- Annualized Total Return ================================================== On Share Price On NAV - -------------------------------------------------- 1-Year 13.09% 6.79% - -------------------------------------------------- 3-Year 10.15% 7.82% - -------------------------------------------------- 5-Year 7.38% 6.35% - -------------------------------------------------- Since Inception 7.75% 7.84% - -------------------------------------------------- Taxable-Equivalent Total Return(2) ================================================== On Share Price On NAV - -------------------------------------------------- 1-Year 15.78% 9.45% - -------------------------------------------------- 3-Year 12.96% 10.58% - -------------------------------------------------- 5-Year 10.27% 9.18% - -------------------------------------------------- Since Inception 10.56% 10.62% - -------------------------------------------------- Top Five Sectors (as a % of total investments) ================================================== U.S. Guaranteed 44% - -------------------------------------------------- Tax Obligation (Limited) 10% - -------------------------------------------------- Health Care 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 tax rate of 31%. 2 Taxable-equivalent total return is based on the annualized total return and a federal 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: 1997-1998 Monthly Tax-Free Dividends Per Share 10/97 0.075 11/97 0.075 12/97 0.075 1/98 0.075 2/98 0.075 3/98 0.075 4/98 0.075 5/98 0.075 6/98 0.075 7/98 0.075 8/98 0.075 9/98 0.075 Nuveen Select Tax-Free Income Portfolio 2 Performance Overview As of September 30, 1998 NXQ Portfolio Statistics ================================================== Inception Date 5/92 - -------------------------------------------------- Share Price $16 1/4 - -------------------------------------------------- Net Asset Value $15.55 - -------------------------------------------------- Current Market Yield Per Share 5.35% - -------------------------------------------------- Taxable-Equivalent Yield(1) 7.75% - -------------------------------------------------- Fund Net Assets ($000) $273,768 - -------------------------------------------------- Average Weighted Maturity (Years) 17.37 - -------------------------------------------------- Modified Duration (Years) 3.60 - -------------------------------------------------- Annualized Total Return ================================================== On Share Price On NAV - -------------------------------------------------- 1-Year 12.72% 7.07% - -------------------------------------------------- 3-Year 10.83% 7.70% - -------------------------------------------------- 5-Year 7.63% 6.19% - -------------------------------------------------- Since Inception 7.43% 7.58% - -------------------------------------------------- Taxable-Equivalent Total Return(2) ================================================== On Share Price On NAV - -------------------------------------------------- 1-Year 15.37% 9.71% - -------------------------------------------------- 3-Year 13.65% 10.43% - -------------------------------------------------- 5-Year 10.52% 8.95% - -------------------------------------------------- Since Inception 10.21% 10.29% - -------------------------------------------------- Top Five Sectors (as a % of total investments) ================================================== U.S. Guaranteed 43% - -------------------------------------------------- Housing (Multifamily) 9% - -------------------------------------------------- Health Care 8% - -------------------------------------------------- Housing (Single-family) 8% - -------------------------------------------------- Education and Civic Organization 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 tax rate of 31%. 2 Taxable-equivalent total return is based on the annualized total return and a federal 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: 1997-1998 Monthly Tax-Free Dividends Per Share 10/97 0.074 11/97 0.074 12/97 0.074 1/98 0.074 2/98 0.074 3/98 0.0725 4/98 0.0725 5/98 0.0725 6/98 0.0725 7/98 0.0725 8/98 0.0725 9/98 0.0725 Nuveen Select Tax-Free Income Portfolio 3 Performance Overview As of September 30, 1998 NXR Portfolio Statistics ================================================== Inception Date 7/92 - -------------------------------------------------- Share Price $15 3/4 - -------------------------------------------------- Net Asset Value Per Share $15.12 - -------------------------------------------------- Current Market Yield 5.26% - -------------------------------------------------- Taxable-Equivalent Yield(1) 7.62% - -------------------------------------------------- Fund Net Assets ($000) $196,007 - -------------------------------------------------- Average Weighted Maturity (Years) 17.97 - -------------------------------------------------- Modified Duration (Years) 4.04 - -------------------------------------------------- Annualized Total Return ================================================== On Share Price On NAV - -------------------------------------------------- 1-Year 16.31% 7.74% - -------------------------------------------------- 3-Year 12.30% 8.23% - -------------------------------------------------- 5-Year 7.77% 6.29% - -------------------------------------------------- Since Inception 6.83% 6.95% - -------------------------------------------------- Taxable-Equivalent Total Return(2) ================================================== On Share Price On NAV - -------------------------------------------------- 1-Year 18.98% 10.31% - -------------------------------------------------- 3-Year 15.11% 10.89% - -------------------------------------------------- 5-Year 10.60% 8.98% - -------------------------------------------------- Since Inception 9.53% 9.57% - -------------------------------------------------- Top Five Sectors (as a % of total investments) ================================================== U.S. Guaranteed 32% - -------------------------------------------------- Transportation 16% - -------------------------------------------------- Health Care 11% - -------------------------------------------------- Utilities 11% - -------------------------------------------------- Housing (Multifamily) 10% - -------------------------------------------------- 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 tax rate of 31%. 2 Taxable-equivalent total return is based on the annualized total return and a federal 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: 1997-1998 Monthly Tax-Free Dividends Per Share 10/97 0.069 11/97 0.069 12/97 0.069 1/98 0.069 2/98 0.069 3/98 0.069 4/98 0.069 5/98 0.069 6/98 0.069 7/98 0.069 8/98 0.069 9/98 0.069 Nuveen Insured California Select Tax-Free Income Portfolio Performance Overview As of September 30, 1998 NXC Portfolio Statistics ================================================== Inception Date 6/92 - -------------------------------------------------- Share Price $15 13/16 - -------------------------------------------------- Net Asset Value $15.40 - -------------------------------------------------- Current Market Yield Per Share 5.01% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Only)(1) 7.26% - -------------------------------------------------- Taxable-Equivalent Yield (Federal and State)(1) 8.00% - -------------------------------------------------- Fund Net Assets ($000) $96,357 - -------------------------------------------------- Average Weighted Maturity (Years) 18.35 - -------------------------------------------------- Modified Duration (Years) 3.70 - -------------------------------------------------- Annualized Total Return ================================================== On Share Price On NAV - -------------------------------------------------- 1-Year 12.95% 7.75% - -------------------------------------------------- 3-Year 10.70% 8.07% - -------------------------------------------------- 5-Year 6.60% 5.80% - -------------------------------------------------- Since Inception 6.48% 6.95% - -------------------------------------------------- Taxable-Equivalent Total Return(2) ================================================== On Share Price On NAV - -------------------------------------------------- 1-Year 16.26% 10.99% - -------------------------------------------------- 3-Year 14.18% 11.42% - -------------------------------------------------- 5-Year 10.10% 9.19% - -------------------------------------------------- Since Inception 9.84% 10.26% - -------------------------------------------------- Top Five Sectors (as a % of total investments) ================================================== Tax Obligation (Limited) 22% - -------------------------------------------------- U.S. Guaranteed 21% - -------------------------------------------------- Water and Sewer 15% - -------------------------------------------------- Transportation 15% - -------------------------------------------------- Utilities 11% - -------------------------------------------------- 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 37.40%. 2 Taxable-equivalent total return is based on the annualized total return and a combined federal and state income tax rate of 37.40%. It represents the return on a taxable investment necessary to equal the return of the Nuveen fund on an after-tax basis. Bar Chart: 1997-1998 Monthly Tax-Free Dividends Per Share 10/97 0.067 11/97 0.067 12/97 0.067 1/98 0.067 2/98 0.067 3/98 0.066 4/98 0.066 5/98 0.066 6/98 0.066 7/98 0.066 8/98 0.066 9/98 0.066 Nuveen Insured New York Select Tax-Free Income Portfolio Performance Overview As of September 30, 1998 NXN Portfolio Statistics ================================================== Inception Date 6/92 - -------------------------------------------------- Share Price $15 1/8 - -------------------------------------------------- Net Asset Value $15.08 - -------------------------------------------------- Current Market Yield Per Share 5.16% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Only)(1) 7.48% - -------------------------------------------------- Taxable-Equivalent Yield (Federal and State)(1) 8.02% - -------------------------------------------------- Fund Net Assets ($000) $58,902 - -------------------------------------------------- Average Weighted Maturity (Years) 17.12 - -------------------------------------------------- Modified Duration (Years) 3.93 - -------------------------------------------------- Annualized Total Return ================================================== On Share Price On NAV - -------------------------------------------------- 1-Year 8.01% 7.35% - -------------------------------------------------- 3-Year 10.07% 7.52% - -------------------------------------------------- 5-Year 6.51% 5.56% - -------------------------------------------------- Since Inception 5.72% 6.47% - -------------------------------------------------- Taxable-Equivalent Total Return(2) ================================================== On Share Price On NAV - -------------------------------------------------- 1-Year 11.02% 10.34% - -------------------------------------------------- 3-Year 13.28% 10.59% - -------------------------------------------------- 5-Year 9.77% 8.64% - -------------------------------------------------- Since Inception 8.83% 9.47% - -------------------------------------------------- Top Five Sectors (as a % of total investments) ================================================== U.S. Guaranteed 34% - -------------------------------------------------- Education and Civic Organization 25% - -------------------------------------------------- Water and Sewer 10% - -------------------------------------------------- Tax Obligation (Limited) 9% - -------------------------------------------------- Housing (Multifamily) 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 35.70%. 2 Taxable-equivalent total return is based on the annualized total return and a combined federal and state income tax rate of 35.70%. It represents the return on a taxable investment necessary to equal the return of the Nuveen fund on an after-tax basis. Bar Chart: 1997-1998 Monthly Tax-Free Dividends Per Share 10/97 0.065 11/97 0.065 12/97 0.065 1/98 0.065 2/98 0.065 3/98 0.065 4/98 0.065 5/98 0.065 6/98 0.065 7/98 0.065 8/98 0.065 9/98 0.065
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) September 30, 1998 (Unaudited)
Principal Optional Call Market Amount Description Provisions* Ratings** Value - ------------------------------------------------------------------------------------------------------------------------------------ Alabama - 0.2% $ 535,000 Alabama Housing Finance Authority, Single Family Mortgage Revenue Bonds (Collateralized Home Mortgage Revenue Bond Program), 1994 Series A-1 Bonds, 6.550%, 10/01/14 4/04 at 102 Aaa $ 576,446 - ------------------------------------------------------------------------------------------------------------------------------------ Arkansas - 1.1% 2,500,000 Little Rock Health Facilities Board (Arkansas), Refunding Revenue Bonds (Baptist Medical Center/Parkway Village Project), Series 1992, 7.000%, 10/01/17 4/02 at 102 A 2,736,000 - ------------------------------------------------------------------------------------------------------------------------------------ California - 6.5% 4,750,000 California State Public Works Board, Lease Revenue Bonds (California Community Colleges), 1994 Series B, 7.000%, 3/01/14 (Pre-refunded to 3/01/04) 3/04 at 102 Aaa 5,600,060 3,000,000 State Public Works Board of the State of California, Lease Revenue Bonds (Department of Corrections), 1994 Series A (California State of Prison-Monterey County (Soledad II)), 6.875%, 11/01/14 (Pre-refunded to 11/01/04) 11/04 at 102 Aaa 3,569,940 4,905,000 California Statewide Communities Development Authority, Revenue Certificates of Participation (Cedars-Sinai Medical Center), 6.500%, 8/01/15 8/02 at 102 A1 5,440,528 2,000,000 Los Angeles County Metropolitan Transportation Authority (California), Proposition A, Sales Tax Revenue Refunding Bonds, Series 1993-A, 5.625%, 7/01/18 7/03 at 102 AAA 2,121,780 - ------------------------------------------------------------------------------------------------------------------------------------ Colorado - 7.4% Colorado Housing Finance Authority, Single Family Program Senior Revenue Bonds Series 1992A-1: 3,835,000 6.800%, 11/01/12 5/02 at 102 AA+ 4,098,273 1,075,000 6.875%, 11/01/16 5/02 at 102 AA+ 1,147,756 10,750,000 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax) No Opt. Call Baa1 13,828,048 - ------------------------------------------------------------------------------------------------------------------------------------ District of Columbia - 0.4% 1,000,000 District of Columbia, Hospital Revenue and Refunding Bonds (Medlantic Healthcare Group, Inc. Issue), Series 1996A, 5.750%, 8/15/16 8/06 at 102 AAA 1,080,080 - ------------------------------------------------------------------------------------------------------------------------------------ Florida - 3.1% 250,000 Escambia County, Florida, Pollution Control Revenue Bonds (Champion International Project), Series 1993, 5.875%, 6/01/22 (Alternative Minimum Tax) 12/03 at 102 Baa1 258,913 7,000,000 State Board of Education of Florida, Public Education Capital Outlay Bonds, Series 1991-C, 6.625%, 6/01/22 (Pre-refunded to 6/01/02) 6/02 at 101 Aaa 7,753,480 - ------------------------------------------------------------------------------------------------------------------------------------ Illinois - 12.1% City of Chicago Heights, Illinois, General Obligation Bonds, Series 1993 (Corporate Purpose Bonds): 3,820,000 5.650%, 12/01/15 12/08 at 100 AAA 4,135,188 2,600,000 5.650%, 12/01/17 12/08 at 100 AAA 2,816,268 7,000,000 The County of Cook, Illinois, General Obligation Bonds, Series 1992A, 6.600%, 11/15/22 (Pre-refunded to 11/15/02) 11/02 at 102 AAA 7,872,200 1,260,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds (Loyola University of Chicago), Series 1991-A, 7.125%, 7/01/11 (Pre-refunded to 7/01/01) 7/01 at 102 A1*** 1,393,585 3,000,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds (Loyola University of Chicago), Series 1989-A, 6.100%, 7/01/15 (Pre-refunded to 7/01/03) 7/03 at 102 A+*** 3,330,060 2,365,000 Illinois Health Facilities Authority, Revenue Bonds and Revenue Refunding Bonds, Series 1992B (Evangelical Hospitals Corporation), 6.500%, 4/15/09 No Opt. Call AA- 2,693,877 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ------------------------------------------------------------------------------------------------------------------------------------ Illinois (continued) $ 3,850,000 Illinois Health Facilities Authority, Revenue Bonds (Sarah Bush Lincoln Health Center), Series 1992, 7.250%, 5/15/22 (Pre-refunded to 5/15/02) 5/02 at 102 Aaa $4,363,513 2,000,000 State of Illinois, General Obligation Bonds, Series of August 1994, 5.875%, 8/01/14 8/04 at 102 AA 2,186,160 2,500,000 Regional Transportation Authority (Cook, DuPage, Kane, Lake, McHenry and Will Countries in Illinois), General Obligation Bonds, Series 1993A, 5.800%, 6/01/13 6/03 at 102 AAA 2,703,150 - ------------------------------------------------------------------------------------------------------------------------------------ Indiana - 2.7% 3,000,000 Indiana Bond Bank, Special Hospital Program (Hendricks Community Hospital Financing Program), Series 1992A, 7.125%, 4/01/13 4/02 at 102 A+ 3,318,870 Indiana Bond Bank, Special Program Bonds, Series 1992 A: 1,000,000 7.000%, 8/01/12 2/02 at 102 A+ 1,097,240 2,250,000 7.000%, 8/01/18 2/02 at 102 A+ 2,462,153 - ------------------------------------------------------------------------------------------------------------------------------------ Iowa - 1.1% 2,565,000 Woodbury County, Iowa, Hospital Facility Revenue Bonds (St. Luke's Regional Medical Center Project), Series 1991A, 6.750%, 3/01/21 (Pre-refunded to 3/01/01) 3/01 at 102 Aaa 2,792,439 - ------------------------------------------------------------------------------------------------------------------------------------ Kansas - 4.0% 9,000,000 City of Wichita, Kansas, Revenue Bonds (CSJ Health System of Wichita, Inc.), Series 1985 XXV (Remarketed), 7.200%, 10/01/15 11/01 at 102 A+ 10,420,830 - ------------------------------------------------------------------------------------------------------------------------------------ Kentucky - 1.5% 3,230,000 Lexington-Fayette Urban County Government (Kentucky), Governmental Project Revenue Bonds, Series 1994 (University of Kentucky Alumni Association, Inc. Commonwealth Library Project), 6.750%, 11/01/15 (Pre-refunded to 11/01/04) 11/04 at 102 AAA 3,780,198 - ------------------------------------------------------------------------------------------------------------------------------------ Maine - 2.2% 1,210,000 Maine Educational Loan Authority, Educational Loan Revenue Bonds, Series 1992A-2 (Supplemental Educational Loan Program), 7.150%, 12/01/16 (Alternative Minimum Tax) 12/02 at 102 A 1,306,667 Maine Educational Loan Authority, Educational Loan Revenue Bonds, Series 1992A-1 (Supplemental Educational Loan Program): 1,940,000 6.800%, 12/01/07 (Alternative Minimum Tax) 12/02 at 102 Aaa 2,085,015 2,195,000 7.000%, 12/01/16 (Alternative Minimum Tax) 12/02 at 102 Aaa 2,362,479 - ------------------------------------------------------------------------------------------------------------------------------------ Massachusetts - 0.9% 2,000,000 Plymouth County (Massachusetts), Certificates of Participation (Plymouth County Correctional Facility), Series A, 7.000%, 4/01/22 10/02 at 102 AA- 2,248,880 - ------------------------------------------------------------------------------------------------------------------------------------ Mississippi - 1.6% 3,600,000 Calhoun County (Mississippi), Solid Waste Disposal Revenue Bonds (Weyerhauser Company Project), Series 1992, 6.875%, 4/01/16 (Alternative Minimum Tax) 4/07 at 103 A 4,140,108 - ------------------------------------------------------------------------------------------------------------------------------------ New Hampshire - 4.1% 10,000,000 New Hampshire Housing Finance Authority, Multi-Family Housing Revenue Refunding Bonds, 1991 Series 1, 7.050%, 7/01/11 7/01 at 102 A1 10,567,300 - ------------------------------------------------------------------------------------------------------------------------------------ New York - 11.7% 7,250,000 Metropolitan Transportation Authority (New York), Commuter Facilities 1987 Service Contract Bonds, Series 5, 7.000%, 7/01/12 7/01 at 102 BBB+ 7,938,025 3,000,000 Metropolitan Transportation Authority (New York), Transit Facilities Service Contract Bonds, Series N, 6.000%, 7/01/11 7/02 at 100 BBB+ 3,142,470 The City of New York, New York, General Purpose, General Obligation Refunding Bonds, Series-A: 240,000 6.250%, 8/01/10 (Pre-refunded to 8/01/04) 8/04 at 101 1/2 A-*** 272,515 4,930,000 6.250%, 8/01/10 8/04 at 101 1/2 A- 5,508,683 4,465,000 New York State Dormitory Authority, State University Educational Facilities Revenue Bonds, Series 1991A, 7.250%, 5/15/18 (Pre-refunded to 5/15/02) 5/02 at 102 Aaa 5,071,927 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ------------------------------------------------------------------------------------------------------------------------------------ New York (continued) $ 2,090,000 New York Local Government Assistance Corporation, New York, Series 1991B, 7.000%, 4/01/21 (Pre-refunded to 4/01/01) 4/01 at 100 AAA $2,256,280 1,365,000 New York Local Government Assistance Corporation (A Public Benefit Corporation of the State of New York), Series 1991D Bonds, 7.000%, 4/01/18 (Pre-refunded to 4/01/02) 4/02 at 102 Aaa 1,535,011 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 198,835 900,000 7.500%, 2/15/21 2/01 at 102 A- 984,969 New York 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-*** 1,578,345 1,425,000 7.400%, 2/15/18 2/02 at 102 A- 1,597,297 - ------------------------------------------------------------------------------------------------------------------------------------ Ohio - 1.2% 2,830,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series A1, 6.050%, 9/01/17 (Alternative Minimum Tax) 9/07 at 102 AAA 3,043,014 - ------------------------------------------------------------------------------------------------------------------------------------ Pennsylvania - 4.9% 7,235,000 Delaware County Authority (Pennsylvania), First Mortgage Revenue Bonds (The Dunwoody Project), Series 1992, 8.125%, 4/01/17 (Pre-refunded to 4/01/02) 4/02 at 102 N/R*** 8,349,335 1,385,000 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 1992-33, 6.900%, 4/01/17 4/02 at 102 AA+ 1,478,058 750,000 Pennsylvania State Higher Educational Facilities Authority, Revenue Bonds Series-A, 6.625%, 8/15/09 8/20 at 102 AAA 832,500 1,750,000 Pennsylvania State Higher Educational Facilities Authority, Revenue Bonds (Thomas Jefferson University), Series-A, 6.625%, 8/15/09 8/20 at 102 A2 1,956,938 - ------------------------------------------------------------------------------------------------------------------------------------ South Carolina - 3.8% 5,000,000 South Carolina Housing Finance and Development Authority, Multifamily Housing Revenue Bonds, 1992 Series A, 6.875%, 11/15/23 5/02 at 102 Aaa 5,327,000 4,060,000 York County (South Carolina), Public Facilities Corporation, Certificates of Participation (York County Justice Center Project), Series 1991, 7.500%, 6/01/11 (Pre-refunded to 6/01/01) 6/01 at 102 Aaa 4,527,022 - ------------------------------------------------------------------------------------------------------------------------------------ Tennessee - 2.4% 5,750,000 Memphis-Shelby County Airport Authority (Tennessee), Airport Special Facilities and Project Revenue Bonds (Federal Express Corporation), Series 1993, 6.200%, 7/01/14 (Alternative Minimum Tax) 7/03 at 102 BBB 6,096,438 - ------------------------------------------------------------------------------------------------------------------------------------ Texas - 9.6% 9,825,000 Harris County Health Facilities Development Corporation (Texas), Hospital Revenue Bonds (Memorial Hospital System Project), Series 1992, 7.125%, 6/01/15 (Pre-refunded to 6/01/02) 6/02 at 102 A3*** 11,100,285 4,000,000 Port of Corpus Christi Authority of Nueces County (Texas), Pollution Control Revenue Bonds (Hoechst Celanese Corporation), Series 1992, 6.875%, 4/01/17 (Alternative Minimum Tax) 4/02 at 102 A+ 4,394,360 3,500,000 Red River Authority (Texas), Pollution Control Revenue Bonds (Hoechst Celanese Corporation), Series 1992, 6.875%, 4/01/17 (Alternative Minimum Tax) 4/02 at 102 A+ 3,845,065 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 1,559,287 3,085,000 6.000%, 5/15/16 5/02 at 100 AAA 3,289,505 465,000 6.000%, 5/15/16 No Opt. Call AAA 529,300 - ------------------------------------------------------------------------------------------------------------------------------------ Virginia - 2.1% 5,070,000 Virginia Housing Development Authority, Commonwealth Mortgage Bonds, 1992 Series A, 7.100%, 1/01/17 1/02 at 102 AA+ 5,305,856 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ------------------------------------------------------------------------------------------------------------------------------------ Washington - 8.9% $ 2,500,000 Public Utility District No. 1 of Snohomish County, Washington, Electric System Refunding Revenue Bonds, Series 1991 A, 7.000%, 1/01/16 1/01 at 102 A+ $2,699,075 5,700,000 Public Utility District No. 1 of Snohomish County, Washington, Generation System Revenue Bonds, Series 1989, 6.750%, 1/01/12 1/02 at 102 Aaa 6,333,897 2,750,000 Washington Health Care Facilities Authority, Revenue Bonds, Series 1992 (Sacred Heart Medical Center, Spokane), 6.875%, 2/15/12 2/02 at 102 AA- 3,013,615 10,000,000 Washington Public Power Supply System, Nuclear Project No. 1, Refunding Revenue Bonds, Series 1991A, 6.875%, 7/01/17 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 10,998,200 - ------------------------------------------------------------------------------------------------------------------------------------ West Virginia - 1.3% 1,885,000 Marshall County, West Virginia, Special Obligation Refunding Bonds, Series 1992, 6.500%, 5/15/10 No Opt. Call AAA 2,211,387 1,000,000 West Virginia Housing Development Fund, Housing Finance Bonds, 1992 Series A, 7.000%, 5/01/24 5/02 at 103 Aaa 1,088,609 - ------------------------------------------------------------------------------------------------------------------------------------ Wisconsin - 2.1% 5,000,000 Wisconsin Housing and Economic Development Authority, Multi-Family Housing Revenue Bonds, 1992 Series B, 7.050%, 11/01/22 4/02 at 102 A1 5,386,299 - ------------------------------------------------------------------------------------------------------------------------------------ Wyoming - 1.2% 3,000,000 Wyoming Community Development Authority, Single Family Mortgage Revenue Bonds (Federally Insured or Guaranteed Mortgage Loans), Series 1988-G, 7.200%, 6/01/10 (Alternative Minimum Tax) 11/01 at 103 AA 3,213,270 - ------------------------------------------------------------------------------------------------------------------------------------ $ 227,215,000 Total Investments - (cost $222,987,275) - 98.1% 252,950,156 ============= Other Assets Less Liabilities - 1.9% 4,830,384 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $257,780,540 ==================================================================================================================== * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** 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) September 30, 1998 (Unaudited)
Principal Optional Call Market Amount Description Provisions* Ratings** Value - ------------------------------------------------------------------------------------------------------------------------------------ California - 5.3% $ 3,250,000 California State Public Works Board, Lease Revenue Bonds (California Community Colleges), 1994 Series B, 7.000%, 3/01/14 (Pre-refunded to 3/01/04) 3/04 at 102 Aaa $3,831,620 2,000,000 State Public Works Board of the State of California, Lease Revenue Refunding Bonds (The Regents of the University of California), 1993 Series A (Various University of California Projects), 5.500%, 6/01/14 No Opt. Call Aa3 2,212,300 5,000,000 State Public Works Board of the State of California, Lease Revenue Bonds (Department of Corrections), 1994 Series A (California State Prison-Monterey County (Soledad)), 6.875%, 11/01/14 (Pre-refunded to 11/01/04) 11/04 at 102 Aaa 5,949,900 500,000 State Public Works Board of the State of California, Lease Revenue Bonds, California Community Colleges, Series A, 5.250%, 12/01/16 12/08 at 101 A 526,150 500,000 City of Contra Costa Water District (California), Water Revenue Bonds, Refunding Series 1997 H, 5.000%, 10/1/17 10/07 at 100 AA- 510,355 500,000 County of Contra Costa, California, Certificates of Participation (Merrithew Memorial Hospital Replacement Project), Refunding Series of 1997, 5.375%, 11/01/17 11/07 at 102 AAA 531,325 1,000,000 City of Fresno, California, Health Facility Revenue Bonds, Series 1993B (Holy Cross Health System Corporation), 5.625%, 12/01/15 12/03 at 102 AAA 1,065,040 - ------------------------------------------------------------------------------------------------------------------------------------ Colorado - 6.2% 3,890,000 Colorado Housing Finance Authority, Single Family Program Senior Bonds, Series 1992A-3, 7.000%, 11/01/24 (Alternative Minimum Tax) 5/02 at 102 AA+ 4,153,159 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 2,681,467 9,130,000 7.250%, 11/15/12 (Alternative Minimum Tax) 11/02 at 102 Baa1 10,270,428 - ------------------------------------------------------------------------------------------------------------------------------------ District of Columbia - 5.1% 7,500,000 District of Columbia (Washington, D.C.), General Obligation Bonds, Series 1992B, 6.300%, 6/01/12 6/02 at 102 AAA 8,259,900 4,600,000 District of Columbia Hospital Revenue Refunding Bonds (Washington Hospital Center), Series 1992-A, 7.125%, 8/15/19 (Pre-refunded to 8/15/02) 8/02 at 102 A3*** 5,203,750 500,000 District of Columbia, Hospital Revenue and Refunding Bonds (Medlantic Healthcare Group, Inc. Issue), Series 1996A, 5.750%, 8/15/16 8/06 at 102 AAA 540,040 - ------------------------------------------------------------------------------------------------------------------------------------ Florida - 3.3% 8,180,000 Hillsborough County (Florida), Environmentally Sensitive Land Acquisition and Protection Program Bonds, Series 1992, 6.375%, 7/01/11 (Pre-refunded to 7/01/02) 7/02 at 102 Aa3*** 9,071,456 - ------------------------------------------------------------------------------------------------------------------------------------ Illinois - 12.0% 8,500,000 Chicago Metropolitan Housing Development Corporation (Illinois), Housing Development Revenue Refunding Bonds (FHA-Insured Mortgage Loans-Section 8 Assisted Projects), Series 1992A, 6.800%, 7/01/17 7/02 at 102 AA 9,112,680 8,070,000 The County of Cook, Illinois, General Obligation Bonds, Series 1992A, 6.600%, 11/15/22 (Pre-refunded to 11/15/02) 11/02 at 102 AAA 9,075,522 3,750,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds (Columbia College), Series 1992, 6.875%, 12/01/17 12/04 at 100 BBB 4,174,688 2,500,000 Illinois Educational Facilities Authority, Revenue Bonds, Series 1993 (Columbia College), 6.125%, 12/01/08 12/03 at 102 BBB 2,613,150 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 2,491,628 45,000 6.500%, 6/15/22 6/03 at 102 AA- 49,902 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ------------------------------------------------------------------------------------------------------------------------------------ Illinois (continued) $ 5,000,000 Regional Transportation Authority (Cook, DuPage, Kane, Lake, McHenry and Will Counties in Illinois), General Obligation Bonds, Series 1993A, 5.800%, 6/01/13 6/03 at 102 AAA $5,406,300 - ------------------------------------------------------------------------------------------------------------------------------------ Indiana - 5.8% 2,005,000 Howard County Jail and Juvenile Detention Center Corporation (Indiana), First Mortgage Revenue Bonds, Series 1992, 6.850%, 1/01/12 (Pre-refunded to 1/01/02) 1/02 at 102 A1*** 2,224,548 10,000,000 Indiana Educational Facilities Authority, Educational Facilities Refunding Revenue Bonds (Butler University Project), Series 1992A, 6.600%, 1/01/18 1/02 at 102 AAA 10,914,100 2,400,000 Westfield-Washington South School Building Corporation (Indiana), First Mortgage Revenue Bonds (Series 1992), 6.500%, 7/15/13 (Pre-refunded to 7/15/02) 7/02 at 102 A*** 2,669,520 - ------------------------------------------------------------------------------------------------------------------------------------ Kentucky - 2.2% 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 4,738,204 1,100,000 6.700%, 7/01/17 7/02 at 102 AAA 1,169,366 - ------------------------------------------------------------------------------------------------------------------------------------ Louisiana - 4.7% 11,425,000 Louisiana Public Facilities Authority, Revenue Bonds, 1992 Series, Tulane University of Louisiana, 6.625%, 11/15/21 (Pre-refunded to 11/15/02) 11/02 at 102 A+*** 12,835,988 - ------------------------------------------------------------------------------------------------------------------------------------ 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 2,236,412 1,585,000 6.500%, 8/01/11 8/01 at 102 AA- 1,721,817 3,000,000 Massachusetts Health and Educational Facilities Revenue Bonds (Jordan Memorial Hospital Issue), Series 1992C, 6.875%, 10/01/22 (Pre-refunded to 10/01/02) 10/02 at 102 BBB+*** 3,377,430 - ------------------------------------------------------------------------------------------------------------------------------------ Michigan - 1.6% Royal Oak Hospital Finance Authority, Revenue Bonds, Series 1992-E (Beaumont Properties Inc.): 435,000 6.625%, 1/01/19 (Pre-refunded to 1/01/02) 1/02 at 102 AAA 480,288 3,565,000 6.625%, 1/01/19 1/02 at 102 AA- 3,894,691 - ------------------------------------------------------------------------------------------------------------------------------------ Montana - 0.8% 2,065,000 City of Billings, Montana, Tax Increment Urban Renewal Bonds, Refunding Series 1992, 7.100%, 3/01/08 3/02 at 101 Baa 2,254,815 - ------------------------------------------------------------------------------------------------------------------------------------ Nevada - 0.2% 500,000 Clark County, Nevada, General Obligation (Limited Tax), Las Vegas Convention and Visitors Authority Bonds, Series September 1, 1996, 5.500%, 7/01/17 7/06 at 101 AAA 531,530 - ------------------------------------------------------------------------------------------------------------------------------------ New York - 11.1% 3,850,000 Metropolitan Transportation Authority (New York), Transit Facilities Service Contract Bonds, Series N, 6.000%, 7/01/11 7/02 at 100 BBB+ 4,032,837 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-*** 7,862,879 965,000 7.100%, 2/01/11 2/02 at 101 1/2 A- 1,068,738 2,725,000 7.100%, 2/01/12 (Pre-refunded to 2/01/02) 2/02 at 101 1/2 A-*** 3,045,678 425,000 7.100%, 2/01/12 2/02 at 101 1/2 A- 470,688 2,695,000 Dormitory Authority of the State of New York, State University Educational Facilities, Revenue Bonds, Series 1989B, 7.250%, 5/15/15 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 2,900,736 4,000,000 New York State Medical Care Facilities Finance Agency, New York Hospital FHA-Insured Mortgage Revenue Bonds, 1994 Series A, 6.750%, 8/15/14 (Pre-refunded to 2/15/05) 2/05 at 102 AAA 4,696,560 5,000,000 Triborough Bridge and Tunnel Authority (New York), Convention Center Project Bonds, Series E, 7.250%, 1/01/10 No Opt. Call BBB+ 6,043,350 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ------------------------------------------------------------------------------------------------------------------------------------ Ohio - 2.4% $ 2,800,000 County of Cuyahoga, Ohio, Hospital Revenue Bonds (Meridia Health System), Series 1995, 6.250%, 8/15/14 (Pre-refunded to 8/15/05) 8/05 at 102 AAA $3,231,648 3,000,000 County of Erie, Ohio, Hospital Improvement and Refunding Revenue Bonds, Series 1992 (Firelands Community Hospital Project), 6.750%, 1/01/15 1/02 at 102 A 3,283,920 - ------------------------------------------------------------------------------------------------------------------------------------ Oklahoma - 2.4% 6,000,000 Oklahoma City (Oklahoma), Water Utilities Trust, Water and Sewer Revenue Bonds, 6.400%, 7/01/17 7/02 at 100 AAA 6,493,440 - ------------------------------------------------------------------------------------------------------------------------------------ Pennsylvania - 2.5% 6,295,000 Pennsylvania Intergovernmental Cooperation Authority, Special Tax Revenue Bonds (City of Philadelphia Funding Program), Series of 1992, 6.800%, 6/15/22 (Pre-refunded to 6/15/02) 6/02 at 100 Aaa 6,954,653 - ------------------------------------------------------------------------------------------------------------------------------------ Rhode Island - 2.3% 5,500,000 Rhode Island Depositors Economic Corporation, Special Obligation Bonds, 1992 Series A, 6.900%, 8/01/13 (Pre-refunded to 8/01/02) 8/02 at 102 AAA 6,205,925 - ------------------------------------------------------------------------------------------------------------------------------------ South Carolina - 2.8% 7,000,000 Richland County (South Carolina), Solid Waste Disposal Facilities Revenue Bonds (Union Camp Corporation Project), Series 1992-A, 6.750%, 5/01/22 (Alternative Minimum Tax)5/02 at 102 A1 7,673,120 - ------------------------------------------------------------------------------------------------------------------------------------ Tennessee - 5.3% 4,500,000 Memphis-Shelby County Airport Authority (Tennessee), Special Facilities Revenue Bonds, Series 1984 (Federal Express Corporation), 7.875%, 9/01/09 9/01 at 103 BBB 5,023,800 8,895,000 Tennessee Housing Development Agency, Homeownership Program Bonds, Issue WR, 6.800%, 7/01/17 7/02 at 102 AA 9,476,377 - ------------------------------------------------------------------------------------------------------------------------------------ Texas - 7.8% 3,275,000 Bexar County (Texas), Health Facilities Development Corporation, Hospital Revenue Bonds (Baptist Memorial Hospital System Project), Series 1994, 6.900%, 2/15/14 (Pre-refunded to 8/15/04) 8/04 at 102 AAA 3,834,468 4,775,000 Cleveland Housing Corporation (Texas), Mortgage Revenue Refunding Bonds, Series 1992-C (FHA Insured-Section 8), 7.375%, 7/01/24 1/01 at 102 AAA 5,042,018 2,500,000 Harris County Health Facilities Development Corporation, Texas Childrens Hospital Project, Series 1995, 5.500%, 10/01/16 10/05 at 102 AAA 2,638,875 7,600,000 Port of Corpus Christi Authority of Nueces County (Texas), Pollution Control Revenue Bonds (Hoechst Celanese Corporation), Series 1992, 6.875%, 4/01/17 (Alternative Minimum Tax) 4/02 at 102 A+ 8,349,284 1,460,000 Red River Authority (Texas), Pollution Control Revenue Bonds (Hoechst Celanese Corporation), Series 1992, 6.875%, 4/01/17 (Alternative MinimumTax) 4/02 at 102 A+ 1,603,941 - ------------------------------------------------------------------------------------------------------------------------------------ Utah - 1.0% 1,655,000 Municipal Building Authority of Ogden City School District, Weber County, Utah, Lease Revenue Bonds (Central Middle School Project), Series 1992, 6.700%, 1/01/12 (Pre-refunded to 1/01/02) 1/02 at 101 A3*** 1,835,329 970,000 Utah Housing Finance Agency, Single Family Mortgage Purchase Refunding Senior Bonds, Series 1992, 6.800%, 1/01/12 7/02 at 102 Aaa 1,033,399 - ------------------------------------------------------------------------------------------------------------------------------------ Vermont - 1.4% 3,600,000 Vermont Industrial Development Authority, Industrial Development Refunding Revenue Bonds (Stanley Works Project), Series 1992, 6.750%, 9/01/10 9/02 at 102 A 3,925,008 - ------------------------------------------------------------------------------------------------------------------------------------ Virginia - 0.8% 2,000,000 Industrial Development Authority of Covington-Alleghany County, Virginia, Hospital Facility Revenue Bonds (Allegheny Regional Hospital), Series 1992, 6.625%, 4/01/12 (Pre-refunded to 4/01/02) 4/02 at 102 N/R*** 2,215,600 - ------------------------------------------------------------------------------------------------------------------------------------ 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*** 3,948,192 6,160,000 6.500%, 7/01/18 (Pre-refunded to 7/01/01) 7/01 at 102 Aa1*** 6,715,877 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ------------------------------------------------------------------------------------------------------------------------------------ West Virginia - 0.7% $ 1,750,000 West Virginia School Building Authority, Capital Improvement Revenue Bonds, Series 1992-A, 6.625%, 7/01/22 (Pre-refunded to 7/01/02) 7/02 at 102 A*** $1,951,320 - ------------------------------------------------------------------------------------------------------------------------------------ Wisconsin - 3.9% 10,000,000 Wisconsin Housing and Economic Development Authority, Multi-Family Housing Revenue Bonds, 1992 Series D, 7.200%, 11/01/13 (Alternative Minimum Tax) 4/02 at 102 A1 10,650,900 - ------------------------------------------------------------------------------------------------------------------------------------ $ 243,565,000 Total Investments - (cost $241,065,621) - 98.2% 268,988,029 ============= Temporary Investments in Short-Term Municipal Securities - 0.3% $ 800,000 Princeton, Indiana, Industrial Pollution Control Revenue Bonds, Series 1996, Variable Rate Demand ============= Bonds, 4.000%, 3/01/19+ VMIG-1 800,000 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.5% 3,979,561 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $273,767,590 ==================================================================================================================== * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** 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) September 30, 1998 (Unaudited)
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 Bonds (Department of Corrections), 1994 Series A (California State Prison-Monterey County (Soledad II)), 6.875%, 11/01/14 (Pre-refunded to 11/01/04) 11/04 at 102 Aaa $3,569,940 500,000 City of Fresno, California, Health Facility Revenue Refunding Bonds (Holy Cross Health System Corporation), 5.625%, 12/01/18 12/03 at 102 AAA 526,440 1,490,000 City of Torrance (California), Hospital Revenue Bonds (Little Company of Mary Hospital Project), Series 1992, 6.875%, 7/01/15 7/02 at 102 A 1,636,840 - ------------------------------------------------------------------------------------------------------------------------------------ Colorado - 6.9% 2,500,000 City of Colorado Springs, Colorado, Utilities System Refunding Revenue Bonds, Series 1992A, 6.125%, 11/15/20 11/02 at 100 AA 2,687,750 1,500,000 City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax) No Opt. Call Baa1 1,929,495 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 935,930 3,185,000 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 Baa1 3,569,971 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 530,654 3,530,000 6.750%, 11/15/13 (Alternative Minimum Tax) 11/02 at 102 Baa1 3,904,957 - ------------------------------------------------------------------------------------------------------------------------------------ Connecticut - 0.1% 250,000 State of Connecticut, Health and Educational Facilities Authority, Revenue Bonds, Bridgeport Hospital Issue, Series A, 6.625%, 7/01/18 7/02 at 102 AAA 275,150 - ------------------------------------------------------------------------------------------------------------------------------------ District of Columbia - 3.5% 2,000,000 District of Columbia Hospital Revenue Refunding Bonds (Washington Hospital Center), Series 1992-A, 7.125%, 8/15/19 (Pre-refunded to 8/15/02) 8/02 at 102 A3*** 2,262,500 District of Columbia (Washington D.C.), General Obligation Bonds, Series 1993-E: 165,000 6.000%, 6/01/13 (Pre-refunded to 6/01/13) 6/03 at 102 AAA 182,518 4,080,000 6.000%, 6/01/13 6/03 at 102 AAA 4,485,552 - ------------------------------------------------------------------------------------------------------------------------------------ Florida - 2.1% 3,675,000 City of Tampa, Florida, Revenue Bonds (The Florida Aquarium Project), Series 1992, 7.550%, 5/01/12 (Pre-refunded to 5/01/02) 5/02 at 102 N/R*** 4,184,355 - ------------------------------------------------------------------------------------------------------------------------------------ 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*** 2,487,893 2,000,000 6.375%, 9/01/22 (Pre-refunded to 9/01/02) 9/02 at 102 Baa1*** 2,220,500 - ------------------------------------------------------------------------------------------------------------------------------------ Illinois - 14.4% 3,000,000 Village of Bryant, Illinois, Pollution Control Revenue Refunding Bonds (Central Illinois Light Company Project), Series 1992, 6.500%, 2/01/18 2/02 at 102 Aa2 3,208,380 2,500,000 Chicago Metropolitan Housing Development Corporation (Illinois), Housing Development Revenue Refunding Bonds (FHA-Insured Mortgage Loans-Section 8 Assisted Projects), Series 1992A, 6.850%, 7/01/22 7/02 at 102 AA 2,684,400 2,550,000 City of Chicago, Illinois, Mortgage Revenue Bonds, Series 1992 (FHA Insured Mortgage Loan-Lakeview Towers Project), 6.600%, 12/01/20 12/02 at 102 AAA 2,705,474 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ------------------------------------------------------------------------------------------------------------------------------------ Illinois (continued) $ 1,700,000 City of Chicago, Chicago-O'Hare International Airport General Airport Second Lien Revenue Bonds, 5.600%, 1/01/18 (Alternative Minimum Tax) 1/03 at 102 AAA $1,772,114 1,500,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992C (Evangelical Hospitals Corporation), 6.250%, 4/15/22 No Opt. Call AA- 1,757,310 4,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992B (Franciscan Sisters Health Care Corporation Project), 6.625%, 9/01/13 (Pre-refunded to 9/01/06) 9/06 at 100 AAA 4,702,080 1,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992 (Mercy Center for Health Care Services), 6.650%, 10/01/22 10/02 at 102 Baa1 1,119,730 7,750,000 The Illinois State Toll Highway Authority, Toll Highway Priority Revenue Bonds, 1992 Series A, 6.375%, 1/01/15 1/03 at 102 A+ 8,489,738 1,360,000 Board of Regents of Sangamon State University (Illinois), Auxiliary Facilities System, Revenue Bonds, Series 1992, 6.375%, 10/01/17 (Pre-refunded to 10/01/02) 10/02 at 102 AAA 1,514,455 - ------------------------------------------------------------------------------------------------------------------------------------ Indiana - 5.5% 1,205,000 Allen County, Indiana, Refunding Certificates of Participation, Series 1991, 6.500%, 11/01/17 5/02 at 101 Aa3 1,307,750 4,000,000 Indiana State Office Building Commission Correctional Facilities Program, Revenue Bonds, Series 1991, 6.375%, 7/01/16 (Pre-refunded to 12/01/01) 12/01 at 102 Aa3*** 4,386,680 2,000,000 School Building Corporation of Warren Township (Marion County, Indiana), First Mortgage Bonds, Series 1992A, 6.000%, 7/15/12 (Pre-refunded to 7/15/02) 7/02 at 102 A+*** 2,189,600 2,725,000 Warrick County, Indiana, Adjustable Rate Environmental Improvement Revenue Bonds, 1993 Series B (Southern Indiana Gas and Electric Company Project), 6.000%, 5/01/23 (Alternative MinimumTax) 5/03 at 102 AA 2,915,287 - ------------------------------------------------------------------------------------------------------------------------------------ Kentucky - 2.6% County of Trimble, Kentucky, Pollution Control Revenue Bonds, 1990 Series B (Louisville Gas and Electric Company Project): 500,000 6.550%, 11/01/20 (Pre-refunded to 9/16/02) (Alternative Minimum Tax) 9/02 at 102 Aaa 558,945 4,080,000 6.550%, 11/01/20 (Alternative MinimumTax) 9/02 at 102 Aa2 4,451,810 - ------------------------------------------------------------------------------------------------------------------------------------ Louisiana - 2.2% 4,000,000 Louisiana Public Facilities Authority, Revenue Bonds, Series 1992, Baton Rouge Water Works Company Project, 6.400%, 2/01/10 (Alternative MinimumTax) 2/03 at 101 AA- 4,374,520 - ------------------------------------------------------------------------------------------------------------------------------------ Massachusetts - 0.7% 1,270,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, MetroWest Health, Inc. Issue, Series C, 6.500%, 11/15/18 (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 1,422,908 - ------------------------------------------------------------------------------------------------------------------------------------ Michigan - 6.7% 4,000,000 Michigan State Housing Development Authority, Single Family Mortgage Revenue Bonds, 1996 Series C, 5.950%, 12/01/17 6/06 at 102 AA+ 4,237,880 8,240,000 Michigan Housing Development Authority, Limited Obligation Revenue Bonds (Greenwood Villa Project), Series 1992, 6.625%, 9/15/17 9/02 at 103 AAA 8,912,384 - ------------------------------------------------------------------------------------------------------------------------------------ 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 2,116,952 980,000 6.250%, 7/01/22 (Pre-refunded to 7/01/02) 7/02 at 102 Aaa 1,081,822 20,000 6.250%, 7/01/22 7/02 at 102 AAA 21,754 - ------------------------------------------------------------------------------------------------------------------------------------ New York - 10.4% 1,060,000 The City of New York, New York, General Obligation Bonds, Fiscal 1992 Series B, 7.000%, 2/01/18 2/02 at 101 1/2 A- 1,167,177 The City of New York (New York), General Obligation Bonds, Fiscal 1992 Series C, Subseries C-1: 1,605,000 7.000%, 8/01/17 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 1,812,559 145,000 7.000%, 8/01/17 8/02 at 101 1/2 A- 161,391 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ------------------------------------------------------------------------------------------------------------------------------------ New York (continued) $ 1,280,000 The City of New York (New York), General Obligation Bonds, Fiscal 1992, Series D, 7.500%, 2/01/18 (Pre-refunded to 2/01/02) 2/02 at 101 1/2 Aaa $1,447,155 220,000 New York New York, Series D, 7.500%, 2/01/18 2/02 at 101 1/2 A- 245,637 The City of New York, New York, General Obligation Bonds, Fiscal 1991 Series B: 745,000 7.000%, 6/01/12 (Pre-refunded to 6/01/01) 6/01 at 101 1/2 Aaa 818,330 255,000 7.000%, 6/01/12 6/01 at 101 1/2 A- 277,866 The City of 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-*** 1,972,705 235,000 7.100%, 2/01/11 2/02 at 101 1/2 A- 260,263 2,785,000 New York City Municipal Water Finance Authority (New York), Water and Sewer System Revenue Bonds, Fixed Rate Fiscal 1993 Series B Bonds, 6.375%, 6/15/22 (Pre-refunded to 6/15/02) 6/02 at 101 AAA 3,064,558 4,000,000 New York City (New York), Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, Fiscal 1993 Series A, 6.000%, 6/15/17 6/02 at 101 1/2 A1 4,279,600 2,130,000 Dormitory Authority of the State of New York, City University System Consolidated, Second General Resolution Revenue Bonds, Series 1990C, 7.500%, 7/01/10 No Opt. Call BBB+ 2,639,816 2,000,000 New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home FHA-Insured Mortgage Revenue Bonds, 1992 Series C (Mount Sinai Hospital), 6.250%, 8/15/12 8/02 at 102 AAA 2,157,840 - ------------------------------------------------------------------------------------------------------------------------------------ Pennsylvania - 6.2% 2,500,000 Cambria County Hospital Development Authority (Pennsylvania), Hospital Revenue Refunding and Improvement Bonds, Series B of 1992 (Conemaugh Valley Memorial Hospital Project), 6.375%, 7/01/18 (Pre-refunded to 7/01/02) 7/02 at 102 AAA 2,766,875 2,435,000 Dauphin County, Pennsylvania, Industrial Development Authority, Water Development Refunding Revenue Bonds, Series 1992B (Dauphin Consolidated Water Supply Company), 6.700%, 6/01/17 No Opt. Call A 2,985,651 4,000,000 Pennsylvania Housing Finance Agency, Rental Housing Refunding Bonds, Issue of 1992 (FNMA Insured Mortgage Loans), 6.500%, 7/01/23 7/02 at 102 AAA 4,291,840 2,000,000 Pennsylvania Higher Educational Facilities Authority, Revenue Bonds (Drexel University), Series 1993, 6.375%, 5/01/17 5/03 at 102 A- 2,185,040 - ------------------------------------------------------------------------------------------------------------------------------------ South Carolina - 3.1% 4,000,000 South Carolina Public Service Authority Revenue Bonds, 1992 Refunding Series A, 6.375%, 7/01/11 7/02 at 102 Aa2 4,361,440 1,290,000 Spartanburg, South Carolina, Waterworks Revenue Bonds, Series 1992 Refunding, 6.250%, 6/01/017 (Pre-refunded to 6/01/02) 6/02 at 101 AAA 1,411,944 310,000 City of Spartanburg, South Carolina, Water System Improvement Refunding Revenue Bonds, Series 1992, 6.250%, 6/01/2017 6/02 at 101 AA- 334,096 - ------------------------------------------------------------------------------------------------------------------------------------ South Dakota - 2.3% 4,000,000 South Dakota Health and Educational Facilities Authority, Revenue Bonds, Series 1992 (Rapid City Regional Hospital Issue), 6.150%, 9/01/18 9/02 at 102 AAA 4,411,600 - ------------------------------------------------------------------------------------------------------------------------------------ Tennessee - 2.5% 4,420,000 Memphis-Shelby County Airport Authority (Tennessee), Special Facilities Revenue Refunding Bonds, Series 1992 (Federal Express Corporation), 6.750%, 9/01/12 9/02 at 102 BBB 4,844,408 - ------------------------------------------------------------------------------------------------------------------------------------ Texas - 6.2% 3,755,000 Grand Prairie Industrial Development Authority, Industrial Development Revenue Refunding Bonds, Series 1992 (Baxter International Inc. Project), 6.550%, 12/01/12 12/02 at 102 A 4,077,254 2,500,000 Harris County Health Facilities (Texas), Development Corporation Hospital Revenue Bonds (Hermann Hospital), Series 1994, 6.375%, 10/01/17 (Pre-refunded to 10/01/04) 10/04 at 101 AAA 2,845,975 5,000,000 North Central Texas Health Facilities Development Corporation, Hospital Revenue Refunding Bonds, Baylor Health Care System, 5.250%, 5/15/16 5/06 at 102 AA 5,142,400 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ------------------------------------------------------------------------------------------------------------------------------------ Virginia - 2.1% $ 4,000,000 Virginia Housing Development Authority, Commonwealth Mortgage Bonds, 1992 Series A, 7.100%, 1/01/22 1/02 at 102 AA+ $4,159,880 - ------------------------------------------------------------------------------------------------------------------------------------ Washington - 9.8% 4,000,000 Port of Seattle, Washington, Revenue Bonds, Series 1992B, 6.000%, 11/01/17 (Alternative MinimumTax) 11/02 at 100 AA- 4,249,440 5,840,000 State of Washington, Certificates of Participation, Series 1991-A, State Office Building Project, 6.000%, 4/01/12 4/01 at 102 AA- 6,166,047 4,000,000 Washington Public Power Supply System, Nuclear Project No. 1, Refunding Revenue Bonds, Series 1991A, 6.875%, 7/01/17 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 4,399,280 4,000,000 Washington Public Power Supply System, Nuclear Project No. 1, Refunding Revenue Bonds, Series 1992A, 6.500%, 7/01/15 (Pre-refunded to 7/01/02) 7/02 at 102 Aa1*** 4,442,840 - ------------------------------------------------------------------------------------------------------------------------------------ West Virginia - 4.3% 2,500,000 Berkeley County Building Commission (West Virginia), Hospital Revenue Bonds (City Hospital Project), Series 1992, 6.500%, 11/01/09 11/02 at 102 BBB+ 2,711,624 3,000,000 Mason County, West Virginia, Pollution Control Revenue Bonds (Appalachian Power Company Project), Series 1992J, 6.600%, 10/01/22 10/02 at 102 BBB+ 3,243,030 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*** 2,060,366 395,000 6.500%, 7/01/12 7/02 at 102 A 433,184 - ------------------------------------------------------------------------------------------------------------------------------------ $ 175,770,000 Total Investments - (cost $174,613,642) - 98.5% 193,151,529 ============= Temporary Investments in Short-Term Municipal Securities - 0.3% $ 600,000 Harris County, Texas, Industrial Development Corporation, Pollution Control Revenue Bonds (Exxon ============= Project), 1984 Series B, Variable Rate Demand Bonds, 4.150%, 3/01/24+ A-1+ 600,000 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.2% 2,255,460 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $196,006,989 ==================================================================================================================== * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** 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) September 30, 1998 (Unaudited)
Principal Optional Call Market Amount Description Provisions* Ratings** Value - ------------------------------------------------------------------------------------------------------------------------------------ Education and Civic Organizations - 1.6% $ 1,410,000 California Educational Facilities Revenue Bonds, Loyola, 6.000%, 10/01/14 10/01 at 100 AAA $1,492,936 - ------------------------------------------------------------------------------------------------------------------------------------ Health Care - 9.1% 2,500,000 California Health Facilities Financing Authority, Insured Hospital Revenue Bonds (Scripps Memorial Hospitals), Series 1992A, 6.400%, 10/01/12 10/02 at 102 AAA 2,767,275 1,000,000 California Health Facilities Financing Authority, Insured Hospital Revenue Bonds (Adventist Health System/West), 1991 Series B, 6.500%, 3/01/11 3/01 at 102 AAA 1,077,530 4,000,000 California Health Facilities Financing Authority, Insured Hospital Revenue Bonds (San Diego Hospital Association), Series 1992B, 6.125%, 8/01/11 8/02 at 102 AAA 4,401,840 500,000 California Statewide Communities Development Authority, Certificates of Participation, Sutter Health Obligated Group, 5.500%, 8/15/23 8/03 at 102 AAA 522,790 - ------------------------------------------------------------------------------------------------------------------------------------ Tax Obligation/General - 4.5% 4,000,000 City of Oakland, Alameda County, California, General Obligation Bonds, Series 1992, 6.000%, 6/15/17 6/02 at 102 AAA 4,363,000 - ------------------------------------------------------------------------------------------------------------------------------------ Tax Obligation/Limited - 21.7% 2,320,000 Brea Public Financing Authority (Orange County, California), 1991 Lease Revenue Bonds, Series A, 6.250%, 7/01/21 7/00 at 102 AAA 2,463,886 3,500,000 California Public Works Board Department of Corrections, 6.500%, 9/01/17 No Opt. Call AAA 4,316,305 2,430,000 County of Los Angeles, Certificates of Participation (Edmund D. Edelman Children's Court and Petersen Museum Projects), 6.000%, 4/01/12 4/02 at 102 AAA 2,631,763 1,500,000 Los Angeles County Metropolitan Transportation Authority (California), Proposition A, Sales Tax Revenue Refunding Bonds, Series 1993-A, 5.625%, 7/01/18 7/03 at 102 AAA 1,591,335 4,000,000 San Bernardino County, California, Certificates of Participation (1992 West Valley Detention Center Refinancing Project), 6.000%, 11/01/18 11/02 at 102 AAA 4,373,840 1,000,000 Tulare County, California, Certificates of Participation (1992 Financing Project), Series A, 6.125%, 11/15/12 11/02 at 102 AAA 1,104,050 4,000,000 Walnut Public Financing Authority (Los Angeles County, California), 1992 Tax Allocation Revenue Bonds (Walnut Improvement Project), 6.500%, 9/01/22 9/02 at 102 AAA 4,450,200 - ------------------------------------------------------------------------------------------------------------------------------------ Transportation - 14.8% 3,675,000 Palm Springs Financing Authority, Palm Springs Regional Airport, Revenue Bonds, Series 1992, 6.000%, 1/01/12 (Alternative Minimum Tax) 1/02 at 102 AAA 3,909,722 3,750,000 Port of Oakland (California), Revenue Bonds, Series 1992-E, 6.500%, 11/01/16 (Alternative Minimum Tax) 11/02 at 102 AAA 4,137,600 3,500,000 San Francisco Airports Commission, San Francisco International Airport, Second Series Refunding Revenue Bonds, Issue 1, 6.300%, 5/01/11 5/02 at 102 AAA 3,854,900 2,150,000 Airports Commission, City and County of San Francisco, California, San Francisco International Airport, Second Series Refunding Revenue Bonds, Issue 3 Bonds, 6.200%, 5/01/20 (Alternative Minimum Tax) 5/03 at 102 AAA 2,348,488 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ------------------------------------------------------------------------------------------------------------------------------------ U.S. Guaranteed - 20.7% $ 640,000 California Educational Facilities Revenue Bonds, Loyola, 6.000%, 10/01/14 10/01 at 100 AAA $ 686,458 4,000,000 The Community Redevelopment Agency of the City of Los Angeles, California, Hollywood Redevelopment Project, Tax Allocation Bonds, Series B, 6.100%, 7/01/22 (Pre-refunded to 7/01/02) 7/02 at 102 AAA 4,430,520 1,500,000 Modesto Irrigation District Financing Authority, Domestic Water Project Revenue Bonds, Series 1992A, 6.125%, 9/01/19 (Pre-refunded to 9/01/02) 9/02 at 102 AAA 1,666,950 Rio Linda Union School District, General Obligation Bonds, Series 1992-A: 475,000 6.250%, 8/01/15 (Pre-refunded to 8/01/02) 8/02 at 102 AAA 529,492 3,310,000 6.375%, 8/01/17 (Pre-refunded to 8/01/02) 8/02 at 102 AAA 3,704,420 3,800,000 Sacramento Municipal Utility District Electric Revenue Bonds, 1992 Series B, 6.375%, 8/15/22 (Pre-refunded to 8/15/02) 8/02 at 102 AAA 4,256,418 4,000,000 County of San Diego (California), Certificates of Participation (1994 Inmate Reception Center and Cooling Plant Financing), 6.750%, 8/01/14 (Pre-refunded to 8/01/04) 8/04 at 102 AAA 4,709,880 - ------------------------------------------------------------------------------------------------------------------------------------ Utilities - 11.4% 3,450,000 M-S-R Public Power Agency (California), San Juan Project Revenue Bonds, Series 1991E, 6.000%, 7/01/22 7/01 at 100 AAA 3,632,988 2,430,000 Modesto Irrigation District, California, Certificates of Participation (Refunding and Capital Improvements Project), Series 1991A, 6.000%, 10/01/21 10/01 at 100 AAA 2,562,362 3,000,000 Northern California Power Agency, Hydroelectric Project Number One, Revenue Bonds, 1992 Refunding Series A, 6.250%, 7/01/12 7/02 at 102 AAA 3,309,480 1,225,000 Turlock Irrigation District (California), Revenue Refunding Bonds, Series 1992-A, 6.250%, 1/01/12 No Opt. Call AAA 1,460,886 - ------------------------------------------------------------------------------------------------------------------------------------ Water and Sewer - 14.9% 4,000,000 Eastern Municipal Water District (Riverside County, California), Water and Sewer Revenue Refunding Certificates of Participation, Series 1991A, 6.300%, 7/01/20 7/01 at 101 AAA 4,288,840 1,250,000 Fairfield-Suisun Sewer District (Solano County, California), Sewer Revenue Refunding Bonds, Series 1991A, 6.250%, 5/01/16 5/01 at 102 AAA 1,348,838 4,000,000 City of Los Angeles, California, Wastewater System Revenue Bonds, Series 1992-B, 6.250%, 6/01/12 6/02 at 102 AAA 4,405,760 4,000,000 Walnut Valley Water District (California), Certificates of Participation (Badillo/Grand Transmission Project), Series 1992, 6.125%, 2/01/18 2/01 at 102 AAA 4,273,920 - ------------------------------------------------------------------------------------------------------------------------------------ $ 86,315,000 Total Investments - (cost $85,624,316) - 98.7% 95,074,672 ============= Temporary Investments in Short-Term Municipal Securities - 0.3% $ 300,000 Irvine Ranch, California, Water District #282, Sewer Improvement Bonds, Series A, ============= Variable Rate Demand Bonds, 3.950%, 11/15/13+ A-1+ 300,000 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.0% 982,734 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $96,357,406 ==================================================================================================================== 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: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. + The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements.
Portfolio of Investments Nuveen Insured New York Select Tax-Free Income Portfolio (NXN) September 30, 1998 (Unaudited)
Principal Optional Call Market Amount Description Provisions* Ratings** Value - ------------------------------------------------------------------------------------------------------------------------------------ Education and Civic Organizations - 24.7% $ 1,000,000 New York City Industrial Development Agency, Civic Facility Revenue Bonds (USTA National Tennis Center Incorporated Project), 6.375%, 11/15/14 11/04 at 102 AAA $1,129,230 2,400,000 Dormitory Authority of the State of New York, Hamilton College, Insured Revenue Bonds, Series 1991, 6.500%, 7/01/21 7/01 at 102 AAA 2,604,696 570,000 Dormitory Authority of the State of New York, City University System Consolidated, Second General Resolution Revenue Bonds, Series 1990C, 7.500%, 7/01/10 No Opt. Call AAA 737,158 1,370,000 Dormitory Authority of the State of New York, Siena College, Insured Revenue Bonds, Series 1992, 6.000%, 7/01/11 7/02 at 102 AAA 1,491,382 2,050,000 Dormitory Authority of the State of New York, (Ithaca College), 6.500%, 7/01/107/01 at 102 AAA 2,239,523 2,250,000 Dormitory Authority of the State of New York, New York University Insured Revenue Bonds, Series 1991, 6.250%, 7/01/09 7/01 at 102 AAA 2,435,063 1,100,000 Dormitory Authority of the State of New York, Mount Sinai School of Medicine, Insured Revenue Bonds, Series 1991, 6.750%, 7/01/15 7/01 at 102 AAA 1,200,925 2,500,000 Dormitory Authority of the State of New York, Marist College, Insured Revenue Bonds, Series 1992, 6.000%, 7/01/12 7/02 at 102 AAA 2,707,775 - ------------------------------------------------------------------------------------------------------------------------------------ Health Care - 4.6% 2,500,000 New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home FHA-Insured Mortgage Revenue Bonds, 1992 Series C (Mount Sinai Hospital), 6.250%, 8/15/12 8/02 at 102 AAA 2,734,775 - ------------------------------------------------------------------------------------------------------------------------------------ Housing/Multifamily - 4.8% 1,400,000 New Hartford Housing Development Corporation, Mortgage Revenue Refunding Bonds, Series 1992-A (Village Point Project-FHA Insured Mortgage Loan-Section 8 Assisted Project), 7.375%, 1/01/24 7/02 at 100 AAA 1,498,994 1,245,000 New York State Housing Finance Agency, Insured Multifamily Housing Mortgage Revenue Bonds, Series 1992C (FHA Insured), 6.450%, 8/15/14 8/02 at 102 AAA 1,327,444 - ------------------------------------------------------------------------------------------------------------------------------------ Tax Obligation/General - 3.0% Town of Clarkstown, Rickland County, New York, Various Purpose Serial Bonds - 1992: 505,000 5.600%, 6/15/10 No Opt. Call AAA 568,085 525,000 5.600%, 6/15/11 No Opt. Call AAA 590,426 525,000 5.600%, 6/15/12 No Opt. Call AAA 590,163 35,000 The City of New York (New York), General Obligation Bonds, Fiscal 1992 Series C, 6.250%, 8/01/11 8/02 at 101 1/2 AAA 38,309 - ------------------------------------------------------------------------------------------------------------------------------------ Tax Obligation/Limited - 8.8% 250,000 New York State Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement Revenue Bonds, 1992 Series D, 6.100%, 8/15/13 8/02 at 102 AAA 274,513 2,105,000 New York State Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement Revenue Bonds, 1992 Series B, 6.250%, 8/15/18 2/02 at 102 AAA 2,283,230 200,000 New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Series 1995B, 5.125%, 4/01/15 4/05 at 102 AAA 206,000 2,250,000 Triborough Bridge and Tunnel Authority (New York), Special Obligation Refunding Bonds, Series 1991A, 6.625%, 1/01/17 1/01 at 102 AAA 2,422,328 Principal Optional Call Market Amount Description Provisions* Ratings** Value - ------------------------------------------------------------------------------------------------------------------------------------ Transportation - 4.8% $ 2,500,000 Port of Authority of New York and New Jersey, Consolidated Revenue Bonds, Ninety-Seventh Series, 6.500%, 7/15/19 (Alternative Minimum Tax) 1/05 at 101 AAA $2,812,675 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. Guaranteed - 33.9% 3,500,000 Metropolitan Transportation Authority (New York), Commuter Facilities Revenue Bonds, Series 1992B, 6.250%, 7/01/17 (Pre-refunded to 7/01/02) 7/02 at 102 AAA 3,870,160 2,250,000 Metropolitan Transportation Authority, Transit Facilities Revenue Bonds, Series J, 6.375%, 7/01/10 (Pre-refunded to 7/01/02) 7/02 at 102 AAA 2,497,725 220,000 The City of New York, General Obligation Bonds, 6.250%, 8/01/11 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 AAA 242,686 2,000,000 The City of New York, New York, General Obligation Bonds, Fiscal 1994 Series B, 6.950%, 8/15/12 (Pre-refunded to 8/15/04) 8/04 at 101 AAA 2,339,900 1,000,000 New York City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, Series 1992C, 6.200%, 6/15/21 (Pre-refunded to 6/15/02) 6/02 at 101 1/2 AAA 1,098,730 630,000 New York City Municipal Water Finance Authority, Revenue Bonds, Series A, 6.250%, 6/15/21 (Pre-refunded to 6/15/01) 6/01 at 100 AAA 672,254 1,560,000 Dormitory Authority of the State of New York, Judicial Facilities Lease Revenue Bonds (Suffolk County Issue), Series 1986, 7.375%, 7/01/16 No Opt. Call AAA 1,995,833 2,500,000 New York State Medical Care Facilities Finance Agency, New York Hospital FHA-Insured Mortgage Revenue Bonds, 1994 Series A, 6.750%, 8/15/14 (Pre-refunded to 2/15/05)2/05 at 102 AAA 2,935,350 1,500,000 New York State Thruway Authority, General Revenue Bonds, Series A, 5.500%, 1/01/23 (Pre-refunded to 1/01/02) 1/02 at 100 AAA 1,581,705 2,000,000 New York State Thruway Authority, Local Highway and Bridge Service Contract Bonds, Series 1992, 6.000%, 4/01/10 (Pre-refunded to 4/01/02) 4/02 at 102 AAA 2,167,080 485,000 Suffolk County Water Authority (New York), Waterworks Revenue Bonds, Series 1986-V, 6.750%, 6/01/12 No Opt. Call AAA 584,003 - ------------------------------------------------------------------------------------------------------------------------------------ Utilities - 3.6% 1,945,000 New York State Power Authority, General Purpose Bonds, Series 1992 AA, 6.250%, 1/01/231/02 at 102 AAA 2,105,384 - ------------------------------------------------------------------------------------------------------------------------------------ Water and Sewer - 9.9% 4,900,000 New York City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, Fiscal 1993 Series A, 5.750%, 6/15/18 6/02 at 101 1/2 AAA 5,154,407 620,000 New York City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, 6.250%, 6/15/21 6/01 at 100 AAA 654,397 - ------------------------------------------------------------------------------------------------------------------------------------ $ 52,390,000 Total Investments - (cost $52,277,624) - 98.1% 57,792,308 ============= Temporary Investments in Short-Term Municipal Securities - 1.7% 500,000 New York Municipal Water Finance Authority, Waste and Sewer System Revenue Bonds, 1994 Series G, Variable Rate Demand Bonds, 4.050%, 6/15/24+ VMIG-1 500,000 500,000 New York City Transitional Finance Authority Revenue Bonds, Future Tax, Second Series D, Variable Rate Demand Bonds, 3.950%, 5/01/28+ VMIG-1 500,000 - ------------------------------------------------------------------------------------------------------------------------------------ $ 1,000,000 Total Temporary Investments - 1.7% 1,000,000 ============= Other Assets Less Liabilities - 0.2% 110,033 -------------------------------------------------------------------------------------------------------------------- Net Assets - 100% $58,902,344 ==================================================================================================================== 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: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. + The security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements.
Statement of Net Assets September 30, 1998 (Unaudited)
Insured Insured California New York Select Tax-Free Select Tax-Free 2 Select Tax-Free 3 Select Tax-Free Select Tax-Free Assets Investments in municipal securities, at market value (note 1) $252,950,156 $268,988,029 $193,151,529 $95,074,672 $57,792,308 Temporary investments in short-term municipal securities, at amortized cost, which approximates market value (note 1) -- 800,000 600,000 300,000 1,000,000 Cash 983,013 697,432 150,602 -- -- Receivables: Interest 5,129,083 4,720,474 3,117,523 1,455,952 811,288 Investments sold 110,000 -- -- -- -- Other assets 9,443 10,144 9,039 5,997 5,655 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 259,181,695 275,216,079 197,028,693 96,836,621 59,609,251 - ------------------------------------------------------------------------------------------------------------------------------------ Liabilities Cash overdraft -- -- -- 3,377 406,265 Accrued expenses: Surveillance and administration fees (note 6) 51,347 65,520 47,419 23,631 14,463 Other 121,451 106,456 79,760 39,241 32,220 Dividends payable 1,228,357 1,276,513 894,525 412,966 253,959 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 1,401,155 1,448,489 1,021,704 479,215 706,907 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets (note 7) $257,780,540 $273,767,590 $196,006,989 $96,357,406 $58,902,344 ==================================================================================================================================== 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) $ 15.74 $ 15.55 $ 15.12 $ 15.40 $ 15.08 ==================================================================================================================================== See accompanying notes to financial statements.
Statement of Operations Six Months Ended September 30, 1998 (Unaudited)
Insured Insured California New York Select Tax-Free Select Tax-Free 2 Select Tax-Free 3 Select Tax-Free Select Tax-Free Investment Income (note 1) $7,862,917 $8,238,186 $5,709,697 $2,696,416 $1,663,897 - --------------------------------------------------------------------------------------------------------------------------------- Expenses Surveillance and administration fees (note 6) 311,850 397,863 287,646 143,062 87,677 Shareholders' servicing agent fees and expenses 25,328 24,167 18,441 6,624 4,657 Custodian's fees and expenses 26,444 27,140 23,831 17,919 16,480 Trustees' fees and expenses (note 6) 11,627 12,284 8,829 4,418 2,829 Professional fees 8,187 8,211 8,094 7,355 7,304 Shareholders' reports - printing and mailing expenses 48,258 48,794 35,629 15,604 12,236 Stock exchange listing fees 12,164 12,164 12,164 8,107 8,107 Investor relations expense 12,071 12,420 9,024 3,894 2,564 Other expenses 6,656 6,472 5,322 2,859 2,094 - --------------------------------------------------------------------------------------------------------------------------------- Total expenses 462,585 549,515 408,980 209,842 143,948 - --------------------------------------------------------------------------------------------------------------------------------- Net investment income 7,400,332 7,688,671 5,300,717 2,486,574 1,519,949 - --------------------------------------------------------------------------------------------------------------------------------- Realized and Unrealized Gain (loss) from Investments Net realized gain (loss) from investment transactions (notes 1 and 4) 50,101 599 -- -- (443) Net change in unrealized appreciation or depreciation of investments 1,835,508 1,985,800 2,173,962 1,184,199 656,215 - --------------------------------------------------------------------------------------------------------------------------------- Net gain from investments 1,885,609 1,986,399 2,173,962 1,184,199 655,772 - --------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations $9,285,941 $9,675,070 $7,474,679 $3,670,773 $2,175,721 - --------------------------------------------------------------------------------------------------------------------------------- See accompanying notes to financial statements.
Statement of Changes in Net Assets (Unaudited)
Select Tax-Free Select Tax-Free 2 Select Tax-Free 3 - ----------------------------------------------------------------------------------------------------------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended Six Months Ended Year Ended 9/30/98 3/31/98 9/30/98 3/31/98 9/30/98 3/31/98 - ----------------------------------------------------------------------------------------------------------------------------------- Operations Net investment income $ 7,400,332 $ 14,826,057 $ 7,688,671 $ 15,413,609 $ 5,300,717 $ 10,628,855 Net realized gain (loss) from investment transactions (notes 1 and 4) 50,101 (17,707) 599 (20,819) -- -- Net change in unrealized appreciation or depreciation of investments 1,835,508 7,729,748 1,985,800 8,791,112 2,173,962 7,940,296 - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations 9,285,941 22,538,098 9,675,070 24,183,902 7,474,679 18,569,151 - ----------------------------------------------------------------------------------------------------------------------------------- Distributions to shareholders from undistributed net investment income (note 1) (7,370,150) (14,765,019) (7,659,080) (15,608,661) (5,367,146) (10,734,291) - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets 1,915,791 7,773,079 2,015,990 8,575,241 2,107,533 7,834,860 Net assets at beginning of period 255,864,749 248,091,670 271,751,600 263,176,359 193,899,456 186,064,596 - ----------------------------------------------------------------------------------------------------------------------------------- Net assets at end of period $257,780,540 $255,864,749 $273,767,590 $271,751,600 $196,006,989 $193,899,456 =================================================================================================================================== Balance of undistributed net investment income at end of period $ 162,852 $ 132,670 $ 77,533 $ 47,942 $ 37,702 $ 19,044 =================================================================================================================================== Insured California Select Tax-Free Insured New York Select Tax-Free - ------------------------------------------------------------------------------------------------------------------------------------ Six Months Ended Year Ended Six Months Ended Year Ended 9/30/98 3/31/98 9/30/98 3/31/98 - ------------------------------------------------------------------------------------------------------------------------------------ Operations Net investment income $ 2,486,574 $ 4,981,811 $ 1,519,949 $ 3,046,992 Net realized gain (loss) from investment transactions (notes 1 and 4) -- 2,045 (443) (1,028) Net change in unrealized appreciation or depreciation of investments 1,184,199 4,310,650 656,215 2,470,172 - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations 3,670,773 9,294,506 2,175,721 5,516,136 - ----------------------------------------------------------------------------------------------------------------------------------- Distributions to shareholders from undistributed net investment income (note 1) (2,477,800) (5,024,425) (1,523,758) (3,047,514) - ----------------------------------------------------------------------------------------------------------------------------------- Net increase in net assets 1,192,973 4,270,081 651,963 2,468,622 Net assets at beginning of period 95,164,433 90,894,352 58,250,381 55,781,759 - ----------------------------------------------------------------------------------------------------------------------------------- Net assets at end of period $96,357,406 $95,164,433 $58,902,344 $ 58,250,381 ==================================================================================================================================== Balance of undistributed net investment income at end of period $ 18,273 $ 9,499 $ 78,312 $ 82,121 ==================================================================================================================================== See accompanying notes to financial statements.
Notes to Financial Statements (Unaudited) 1. General Information and Significant Accounting Policies The Trusts covered in this report and their corresponding New York Stock Exchange symbols are Nuveen Select Tax-Free Income Portfolio (NXP), Nuveen Select Tax-Free Income Portfolio 2 (NXQ), Nuveen Select Tax-Free Income Portfolio 3 (NXR), Nuveen Insured California Select Tax-Free Income Portfolio (NXC) and Nuveen Insured New York Select Tax-Free Income Portfolio (NXN). The Trusts are registered under the Investment Company Act of 1940 as closed-end, diversified management investment companies. 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 September 30, 1998, there were no such outstanding purchase commitments in any of the 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. Dividends and Distributions to Shareholders Tax-exempt net investment income is declared as a dividend monthly and payment is made or reinvestment is credited to shareholder accounts on the first business day after month end. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss 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 these estimates. 2. Trust Shares There were no share transactions during the six months ended September 30, 1998, nor during the fiscal year ended March 31, 1998, in any of the Trusts. 3. Distributions to Shareholders The Trusts declared Common share dividend distributions from their tax-exempt net investment income which were paid November 2, 1998, to shareholders of record on October 15, 1998, as follows:
Insured Insured California New York Select Select Select Select Select Tax-Free Tax-Free 2 Tax-Free 3 Tax-Free Tax-Free - --------------------------------------------------------------------------------------------------------- Dividends per share $.0750 $.0725 $.0690 $.0660 $.0650 =========================================================================================================
4. Securities Transactions Purchases and sales (including maturities) of investments in municipal securities and temporary municipal investments during the six months ended September 30, 1998, 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: Investments in municipal securities $ 996,450 $ 498,225 $ -- $ -- $ -- Temporary municipal investments 1,400,000 2,885,000 1,300,000 400,000 3,800,000 Sales and Maturities: Investments in municipal securities 1,966,240 905,000 230,000 -- 10,000 Temporary municipal investments 1,400,000 3,085,000 1,200,000 300,000 3,365,000 =========================================================================================================
At September 30, 1998, the identified cost of investments owned for federal income tax purposes was the same as the cost for financial reporting purposes for each Trust. At September 30, 1998, the Trusts' last fiscal year end, 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 $296,063 $618,333 2002 -- -- 15,243 -- 432 2003 13,520 -- -- -- 1,954 2004 116,258 -- 170,137 -- 321,550 2005 31,707 46,057 674,505 -- 1,480 2006 24,357 44,578 3,603 -- 828 - --------------------------------------------------------------------------------------------------------- Total $185,842 $90,635 $1,063,602 $296,063 $944,577 =========================================================================================================
5. Unrealized Appreciation (Depreciation) Gross unrealized appreciation and gross unrealized depreciation of investments at September 30, 1998, 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 $29,962,881 $27,922,408 $18,537,887 $9,450,356 $5,514,684 depreciation -- -- -- -- -- - --------------------------------------------------------------------------------------------------------- Net unrealized appreciation $29,962,881 $27,922,408 $18,537,887 $9,450,356 $5,514,684 =========================================================================================================
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 September 30, 1998, 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 227,626,767 245,681,943 178,365,361 87,122,269 54,215,788 Balance of undistributed (overdistributed) net investment income 162,852 77,533 37,702 18,273 78,312 Accumulated net realized gain (loss) from investment transactions (135,741) (90,365) (1,063,602) (296,063) (945,511) Net unrealized appreciation of investments 29,962,881 27,922,408 18,537,887 9,450,356 5,514,684 - --------------------------------------------------------------------------------------------------------- Net assets $257,780,540 $273,767,590 $196,006,989 $96,357,406 $58,902,344 =========================================================================================================
8. Investment Composition At September 30, 1998, 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 - -------------------------------------------------------------------------------------------------------- Consumer Cyclical --% 1% --% --% --% Education and Civic Organizations 3 8 3 2 25 Forest and Paper Products 2 3 -- -- -- Health Care 9 8 11 9 5 Housing/Multifamily 8 9 10 -- 5 Housing/Single Family 8 8 4 -- -- Tax Obligation/General 6 4 3 5 3 Tax Obligation/Limited 10 7 4 22 9 Transportation 8 6 16 15 5 U.S. Guaranteed 44 43 32 21 34 Utilities 1 -- 11 11 4 Water and Sewer 1 3 6 15 10 Other -- -- -- -- -- - -------------------------------------------------------------------------------------------------------- 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, 59% for Select Tax-Free 2, 42% 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 (Unaudited) 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 Six Months Ended 9/30: 1998 $15.62 $.44 $ .13 $ .57 $(.45) $-- $(.45) Year Ended 3/31: 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 Six Months Ended 9/30: 1998 15.43 .44 .12 .56 (.44) -- (.44) Year Ended 3/31: 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 Six Months Ended 9/30: 1998 14.96 .41 .16 .57 (.41) -- (.41) Year ended 3/31: 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 Six Months Ended 9/30: 1998 15.21 .39 .20 .59 (.40) -- (.40) Year ended 3/31: 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 Six Months Ended 9/30: 1998 14.91 .39 .17 .56 (.39) -- (.39) Year ended 3/31: 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 Returns ------------------------- Ending Ending Based on Based on Net Asset Market Market Net Asset Value Value Value** Value** Select Tax-Free Six Months Ended 9/30: 1998 $15.74 $16.5000 6.89% 3.70% Year Ended 3/31: 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 Six Months Ended 9/30: 1998 15.55 16.2500 9.10 3.65 Year Ended 3/31: 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 Six Months Ended 9/30: 1998 15.12 15.7500 8.39 3.89 Year ended 3/31: 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 Six Months Ended 9/30: 1998 15.40 15.8125 5.96 3.91 Year ended 3/31: 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 Six Months Ended 9/30: 1998 15.08 15.1250 3.47 3.81 Year ended 3/31: 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 Six Months Ended 9/30: 1998 $257,781 .36%* 5.77%* --% Year Ended 3/31: 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 Six Months Ended 9/30: 1998 273,768 .40* 5.65* -- Year Ended 3/31: 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 Six Months Ended 9/30: 1998 196,007 .42* 5.45* -- Year ended 3/31: 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 Six Months Ended 9/30: 1998 96,357 .44* 5.21* -- Year ended 3/31: 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 Six Months Ended 9/30: 1998 58,902 .49* 5.20* -- Year ended 3/31: 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 -- * Annualized. ** Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Net Asset Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in net asset value per share. Total returns are not annualized.
Building a Better Portfolio Can Make You a Successful Investor Nuveen Family of Mutual Funds Nuveen offers a variety of funds designed to help you reach your financial goals. Growth Nuveen Rittenhouse Growth Fund Growth and Income European Value Fund Growth and Income Stock Fund Balanced Stock and Bond Fund Balanced Municipal and Stock Fund Tax-Free Income National Funds Long-Term Insured Intermediate-Term Limited-Term State Funds Arizona California Colorado Connecticut Florida Georgia Kansas Kentucky Louisiana Maryland Massachusetts Michigan Missouri New Jersey New Mexico New York North Carolina Ohio Pennsylvania Tennessee Virginia Wisconsin Successful investors know that a well-diversified portfolio - one that balances different types of investments, levels of risk and tax management - can be the foundation for building and sustaining wealth. That's why Nuveen offers you and your financial adviser a wide range of quality investments that can help you build a better portfolio in the pursuit of your financial goals Exchange-Traded Funds Nuveen Exchange-Traded Funds offer investors actively managed portfolios of investment-grade quality municipal bonds. The fund shares are listed and traded on the New York and American stock exchanges. Exchange-traded funds provide the investment convenience, price visibility and liquidity of common stocks. MuniPreferred(R) Nuveen MuniPreferred offers investors a AAA rated investment with an attractive tax-free yield for the cash reserves portion of an investment portfolio. MuniPreferred shares are backed 2-to-1 by the long-term portfolios of Nuveen dual-class exchange-traded funds and are available for national as well as a wide variety of state-specific portfolios. Mutual Funds Nuveen offers a family of equity, balanced and municipal bond funds featuring Premier AdvisersSM including Institutional Capital Corporation, Rittenhouse Financial Services, and Nuveen Advisory Corp. Each brings a specialized expertise in a particular investment style or asset class, time-tested investment strategies and a focus on consistent, long-term performance. With Nuveen's Premier Adviser funds, you have all the advantages of a family of funds plus the benefits of specialized investment expertise. Private Asset Management Rittenhouse Financial Services and Nuveen Asset Management offer comprehensive, customized investment management solutions to investors with assets of $250,000 or more to invest. A range of actively managed growth, balanced and municipal income-oriented portfolios are available, all based upon a disciplined investment philosophy. Defined Portfolios Nuveen Defined Portfolios are fixed portfolios of quality securities that are a convenient, attractive alternative to purchasing individual securities. They provide low-cost diversification to reduce risk, while also offering experienced, professional security selection and surveillance. In addition, Nuveen Defined Portfolios provide daily liquidity at that day's net asset value for quick access to your assets. Fund Information Board of Trustees James E. Bacon Anthony T. Dean William T. Kissick Thomas E. Leafstrand Timothy R. Schwertfeger Sheila W. Wellington Fund Manager Nuveen Institutional Advisory Corp. 333 West Wacker Drive Chicago, IL 60606 Custodian, 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, our trading, fund management and pricing systems at Nuveen - the systems that directly affect our investors and their financial advisers - have been updated or replaced to address the Year 2000 concerns. We continue to work closely with our transfer agent, custodian and other service partners to monitor readiness and address other remaining systems issues. Our initial testing indicates we are on schedule, and we have targeted year-end 1998 to complete verification of vendor compliance and service partner readiness. However, we can give no complete assurance at this time that the steps we have taken will be sufficient to prevent any problems that would impact the Nuveen Exchange-Traded Funds. 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 six-month period ended September 30, 1998. 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: 1898 1998 NUVEEN OUR SECOND CENTURY helping investors sustain the wealth of a lifetime.(TM) www.nuveen.com PSA-1-9-98 -----END PRIVACY-ENHANCED MESSAGE-----