SEMIANNUAL REPORT September 30, 2001
logo: Nuveen Investments
Municipal Closed-End
Exchange-Traded
Funds
Dependable, tax-free income to help
you keep more of what you earn.
SELECT PORTFOLIOS
NXP
NXQ
NXR
NXC
NXN
Invest well.
Look ahead
Leave your MARK.(SM)
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photo: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Dear
Shareholder
In the aftermath of September 11, the financial markets have reacted with
volatility and uncertainty as investors attempt to better understand how the
U.S. and world economies are likely to perform in the months ahead. It's too
soon to tell what the long-term impact will be on the markets or your Fund, but
one thing that is increasingly clear to us is that a diversified portfolio that
includes high quality municipal bonds can leave you well positioned to reduce
overall investment volatility.
For example, during the period covered by this report, all of these Nuveen Funds
continued to meet their primary objectives of providing attractive monthly
income from a portfolio of high quality municipal bonds. Detailed information on
your Fund's performance can be found in the Portfolio Manager's Comments and
Performance Overview sections of this report. I urge you to take the time to
read them.
In addition to providing you with steady tax-free income, your Nuveen Fund also
features several characteristics that can help make it an essential part of your
overall investment strategy. These include careful research, constant
surveillance and judicious trading by Nuveen's seasoned portfolio management
team, with every action designed to supplement income, improve Fund structure,
better adapt to current market conditions or increase diversification. In
turbulent times like these, prudent
"A diversified
portfolio
can leave
you well
positioned
to reduce
overall
investment
risk."
"Today, perhaps
more than
ever, investors
have the
ability to
make a lasting
impact on
their families
and their
world for
generations
to come."
investors understand the importance of diversification, balance, and risk
management, all attributes your Nuveen Fund can bring to your portfolio.
For more than 100 years, Nuveen has specialized in offering quality investments
such as these Nuveen Funds to those seeking to accumulate and preserve wealth
and establish a lasting legacy. Our mission continues to be to assist you and
your financial advisor by offering the investment services and products that can
help you invest well and leave your mark for future generations. We thank you
for continuing to choose Nuveen Investments as your partner as you work toward
that goal.
Sincerely,
/s/ TIMOTHY R. SCHWERTFEGER
Timothy R. Schwertfeger
Chairman of the Board
November 15, 2001
Nuveen Select Portfolios (NXP, NXQ, NXR, NXC, NXN)
Portfolio Manager's
Comments
Portfolio manager Tom Spalding talks about key investment strategies, including
the recent portfolio changes approved by shareholders, economic conditions, and
the performance of the Nuveen Select Portfolios. With more than 25 years of
investment experience at Nuveen, Tom has managed the Select Portfolios since
1999.
WOULD YOU RECAP THE SIGNIFICANT MODIFICATIONS MADE TO THE SELECT PORTFOLIOS
MANAGEMENT PROCESS IN AUGUST 2001?
Earlier this year, the board of trustees for the Nuveen Select Portfolios
recommended, and shareholders subsequently approved, changes to the Portfolios'
organizational documents and investment policies. Effective August 1, 2001, the
2017 termination dates were eliminated for all five Select Portfolios, enabling
them to operate indefinitely like all other Nuveen Municipal Closed-End
Exchange-Traded Funds. In addition, the investment policy that required the
California and New York Select Portfolios (NXC and NXN) to invest only in
insured municipal bonds was eliminated. These two Portfolios can now purchase
non-insured investment-grade municipal bonds as well as insured issues. Finally,
the board modified the policy set forth in the Portfolio's original prospectuses
regarding the circumstances under which portfolio securities could be sold and
proceeds reinvested, in order to give the portfolio manager more discretion to
determine when a particular bond should be sold or bought consistent with the
investment objective of dividend stability over time.
HOW WILL THESE CHANGES AFFECT SHAREHOLDERS?
With the elimination of the 2017 termination dates, the Select Portfolios are no
longer constrained by a specific term. Because the Portfolios can now invest in
bonds with maturities beyond 2017, shareholders stand to benefit from the
Portfolios' greater flexibility to find and purchase bonds with higher yields.
This, in turn, should enhance our ability to maintain competitive dividend
rates. Elimination of the termination dates also avoided the potentially
negative impact on share prices that may have occurred as the Portfolios
approached termination.
For the California and New York Portfolios, the elimination of the policy
requiring portfolio investments to be insured allows us to add non-insured
municipal bonds to these two Portfolios, which could improve their potential to
achieve higher yields and better long-term share price performance while
retaining strong overall credit quality. Although investing in non-insured bonds
can increase the Portfolios' risk profiles, all bonds purchased by the
Portfolios must be investment-grade quality and are subject to Nuveen's strict
quality standards and surveillance. As a result of this amendment, NXC and NXN
now have the same flexibility as NXP, NXQ, and NXR to purchase bonds that have
the potential to add yield to their portfolios.
WHEN WILL THESE CHANGES BE IMPLEMENTED?
We have already begun to implement these changes, focusing on finding attractive
bonds with the potential to support the Portfolios' long-term dividend-payment
capabilities, enhance call protection, and add value and diversification. We
expect the addition of longer-term bonds to the Portfolios, and non-insured
bonds to NXC and NXN, to be a gradual process. As bonds mature or are called
away, we will reinvest the proceeds in the best values we can find in the longer
end of the market. Of course, if we see an exceptional opportunity in the
marketplace, we will act to take advantage of it immediately. The Portfolios
will emphasize municipal obligations offering good call protection and
maturities of approximately 18 to 28 years, with an average maturity of 20 to 25
years. These bonds should provide yields similar to those in the long end of the
market, combined with strong liquidity to help reduce volatility if interest
rates rise.
TURNING TO THE EVENTS OF THE PAST TWELVE MONTHS, WHAT FACTORS HAD THE GREATEST
INFLUENCE ON THE U.S. ECONOMY DURING THIS REPORTING PERIOD?
From an economic perspective, the major factors during the twelve months ended
September 30, 2001, were the Federal Reserve's shift in interest rate policy
from neutral to easing short-term rates and the general slowdown in economic
growth. In January 2001, the Fed
embarked on a series of rate cuts designed to stimulate the sluggish U.S.
economy. During the first nine months of the year, the Fed announced nine rate
reductions totaling 400 basis points, lowering the federal funds rate to 2.50%
as of September 30, 2001, its lowest level since 1962. The consensus among many
market observers is that the Fed could continue to ease rates as long as signs
of a significant economic slowdown remain.
In addition, the tragic events of September 11 and its aftermath may have an
impact on the economy and the financial markets that is not yet fully known. We
expect to see at least some pressure on high-profile issuers such as The City of
New York. The Port Authority of New York and New Jersey, as well as on some
airlines and airport facilities. However, we think the credit implications for
the municipal market as a whole may be relatively modest, as many issuers built
healthy balance sheets during recent years of economic expansion, enabling them
to weather a downturn.
New York, of course, bore the brunt of the terrorist attacks. The economic
fallout from the attack on the World Trade Center is expected to be substantial,
as both New York City and State face the loss of billions of dollars in tax
revenues. Although $20 billion in federal funds should help, the slower national
economy and the risk of a continued downturn on Wall Street remain causes for
concern about the near-term outlook for New York's financial position.
California faced an economic emergency of a different type during the past
twelve months, as energy costs soared and the state's major utilities
encountered serious financial problems. Ultimately, the state spent $6.3 billion
from its general fund to purchase electricity and assure adequate supply. By
September, power supplies had become relatively stable, and energy prices had
declined significantly, due in part to conservation efforts. However, the
state's issuance of $12.5 billion in power bonds to reimburse the general fund
for electricity expenditures has been delayed, potentially until 2002, by the
state utilities commission.
WHAT WAS THE MUNICIPAL MARKET ENVIRONMENT DURING THIS PERIOD?
In the municipal market, the conditions of the past twelve months, including
tight municipal supply during 2000, helped many bonds perform well. As 2001 got
underway, the Fed's interest rate cuts created a more favorable environment for
both new municipal issuance and refundings, which together totaled $193.9
billion nationwide during the first nine months of the year, an increase of 34%
over January-September 2000. California remained the largest state issuer of
municipal debt, with $23.4 billion of new issuance during the first nine months
of 2001, up 31% over the same period in 2000, while New York issued $13.8
billion in new bonds, in line with issuance levels during 2000.
While the financial impact of September 11 may be widespread, we expect the
credit implications for the municipal market as a whole to be more modest. The
most prominent effects may be seen in high-profile issuers such as the The City
of New York and The Port Authority of New York and New Jersey. Despite economic
concerns, the credit rating agencies have not changed the ratings for New York
State and City, which have remained at A2/AA/AA and A2/A/A+, respectively, as of
September 30, 2001. In California, however, the significant costs incurred by
the state during the power crisis as well as the delay in bringing the power
issue to market caused both Moody's and Standard & Poor's to downgrade ratings
on California debt to Aa3 and A+ from Aa2 and AA, respectively. Fitch, the third
major rating agency, affirmed California's rating at AA, but revised its outlook
to negative.
From a demand perspective, municipal bonds continued to be highly sought after
by individual investors looking for diversification, tax-free income, quality,
and an alternative to a volatile stock market. Investors in California and New
York, faced with some of the highest marginal income tax rates in the nation,
remained avid buyers of in-state paper over the past twelve months. In September
2001, California successfully brought to
market $5.7 billion in state notes, the largest one-day debt issuance in
municipal market history, while New York issued $1 billion in disaster recovery
notes on October 2, 2001 as this report was being prepared. The California issue
sold rapidly to both retail and institutional investors, demonstrating the
general belief that California continues to represent a strong credit despite
its energy crisis. Individual and institutional investors also snapped up the
New York offering, which had been closely watched as a barometer of the
financial viability of the city going forward.
In general, moderate supply, strong demand and a rising U. S. Treasury market
helped to push municipal bond prices higher than they were twelve months ago,
while municipal yields were correspondingly lower. Nevertheless, we believe the
municipal market continues to represent good value. As of September 30, 2001,
long-term municipal yields were 99.8% of 30-year Treasury yields, compared with
98.5% as of September 30, 2000.
HOW DID THE NUVEEN SELECT PORTFOLIOS PERFORM OVER THE PAST TWELVE MONTHS?
For the year ended September 30, 2001, the Nuveen Select Portfolios produced
total annual returns on net asset value (NAV) as shown in the accompanying
table. The annual returns for the relevant Lehman Brothers Municipal Bond
Indexes1 and Lipper Peer Groups2 are also presented.
LEHMAN
TOTAL RETURN TOTAL LIPPER
MARKET YIELD ON NAV RETURN1 AVERAGE2
------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
9/30/01 EQUIVALENT3 9/30/01 9/30/01 9/30/01
------------------------------------------------------
NXP 5.94% 8.55% 6.98% 10.40% 8.20%
------------------------------------------------------
NXQ 5.94% 8.55% 6.73% 10.40% 8.20%
------------------------------------------------------
NXR 5.88% 8.46% 7.03% 10.40% 8.20%
------------------------------------------------------
NXC 5.41% 8.59% 6.65% 10.26% 11.64%
------------------------------------------------------
NXN 5.24% 8.12% 6.58% 10.83% 12.51%
------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Portfolio in this report.
Over the past twelve months, the combination of thin municipal supply during
2000, an end to the Fed's tightening agenda, and generally favorable market
technicals created a positive total return environment for municipal bonds.
Between September 30, 2000, and September 30, 2001, the yield on the Bond Buyer
25 Revenue Bond Index fell from 5.80% to 5.41%. In this environment of falling
yields (and rising bond values), portfolios with shorter durations4 would
typically be expected to underperform their benchmarks.
As significant portions of the bonds in each Portfolio began approaching their
call dates, the durations of these Funds showed a corresponding decline. As of
September 30, 2001, the national Portfolios' durations ranged from 1.90 to 2.69,
compared with 7.77 for the Lehman Brothers Municipal Bond Index, while NXC and
NXN had durations of 2.93 and 3.25, respectively, compared with 8.97 and 8.16
for the Lehman Insured Tax-Exempt Bond Indexes for California and New York.
Under the newly amended trust declarations, shareholders can expect to see the
Portfolios' durations lengthen as we use bond call proceeds to add longer-term
securities. While this will increase their sensitivity to interest rate changes,
it should help to support the Portfolios' dividends and place the Portfolios in
a better position to participate in market gains.
HOW DID THE MARKET ENVIRONMENT AFFECT THE PORTFOLIOS' DIVIDENDS AND SHARE
PRICES?
During the year ended September 30, 2001, increased pressure from bond calls,
compounded by the need to reinvest call proceeds in a lower interest rate
environment, impacted the income streams of the Select Portfolios and resulted
in dividend cuts in each Portfolio over the past twelve months. Despite these
adjustments, the Portfolios continued to provide attractive market yields, as
shown in the preceding table. In coming months, the addition of longer-term
securities to these Portfolios should enhance their ability to earn higher
yields, which should help to stabilize the dividends. However, these Portfolios
were assembled in the higher
1 The performances of the national Select Portfolios - NXP, NXQ, AND NXR - are
compared with that of the Lehman Brothers Municipal Bond Index, an unleveraged
index comprising a broad range of investment-grade municipal bonds. the
performance of NXC and NXN are compared with those of the Lehman Insured
Tax-Exempt Bond Indexes for California and New York, respectively. These
unleveraged indexes comprise a broad range of insured municipal bonds within
each of those states. Results for the Lehman Indexes do not reflect any
expenses.
2 The total returns of the national Portfolios are compared with the average
annualized return of the 12 funds in the Lipper General and Insured
Unleveraged Municipal Debt Funds category. NXC's total return is compared with
the average total return of the 10 funds in the Lipper California Insured
Municipal Debt Funds category, while the comparison for NXN is based on the 9
funds in the Lipper New York Insured Municipal Debt Funds category. Portfolio
and Lipper returns assume reinvestment of dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen portfolio on an
after-tax basis. For the national Portfolios, the taxable-equivalent yield is
based on the Portfolio's market yield on the indicated date and a federal
income tax rate of 30.5%, while the taxable-equivalent yields for NXC and NXN
are based on their market yields on the indicated date and combined federal
and state income tax rates of 37% and 35.5%, respectively.
4 Duration is a measure of a portfolio's NAV volatility in reaction to interest
rate movements.
interest rate environment of 1992, and as they approach their ten-year
anniversaries, they continue to face the increased exposure to bond calls
normally associated with that point of the bond market cycle. Over the next
twelve months, the dividends of the Nuveen Select Portfolios will be influenced
both by the number of bond calls and by the interest rates at which we can
reinvest the proceeds.
During the past year, as the stock market remained volatile and the bond market
continued to perform well, many investors turned to tax-free fixed-income
investments as a way to add balance to their portfolios and reduce overall risk.
However, on the whole, the Portfolios' NAVs appreciated more rapidly than share
prices, and all five Portfolios continued to trade at discounts (share price
below NAV).
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN SELECT PORTFOLIOS DURING THE
YEAR ENDED SEPTEMBER 30, 2001?
Over the past twelve months, the Select Portfolios continued to focus on their
primary investment objective of providing dependable tax-exempt income, keeping
their assets fully invested in diversified portfolios of quality municipal bonds
that we judged to represent the best value opportunities in the market. We also
took advantage of recent market conditions to work on improving the call
protection of these Portfolios.
As of September 30, 2001, the three national Select Portfolios offered excellent
credit quality, with allocations of bonds rated AAA/U.S. guaranteed and AA
ranging from 58% in NXP to 63% in both NXQ and NXR. Each Portfolio also had a
portion of its assets invested in BBB and non-rated bonds, which benefited from
narrowing credit spreads during the first part of 2001. NXC and NXN were 100%
invested in insured and/or U.S. guaranteed bonds as of September 30, 2001,
meaning that credit quality was not an issue.
Looking at sector activity over the past year, each Portfolio increased or
maintained its allocation to the healthcare sector, which saw prices appreciate
overall when credit spreads narrowed earlier this year. For the first nine
months of 2001, healthcare bonds were the top performers in the national
municipal market, and the sector is expected to remain largely unaffected by
recent events. Four of the Portfolios - NXP, NXQ, NXR, and NXC - also increased
their allocations to the transportation sector, where we selectively added
strong airport issues that we believe are poised to do well. The issues that we
hold represent value plays and focus largely on the major hubs served by the
stronger airlines. In addition, many of these issues offer bondholders the extra
reassurance of insurance. Because most airports operate as virtual monopolies
within their service areas and have fairly diverse revenue streams, airport
bonds are generally regarded as solid credits. Moody's current median rating for
airports is A2, which is solidly investment grade. approval of a $15 billion
airline aid package of grants and loan guarantees demonstrates the commitment to
the air transportation sector at the federal level.
As described earlier, the changes approved at the August 1, 2001, shareholder
meeting have given the Portfolios greater flexibility to take advantage of
strategies and market opportunities that can enhance portfolio structure,
including call protection and long-term dividend-payment capabilities. We have
already purchased some longer-term bonds offering better call protection in NXN.
Overall, the Nuveen Select Portfolios, which were originally organized as
passively managed funds, will continue to be managed with a less aggressive
approach than other Nuveen Municipal Closed-End Exchange-Traded Funds. However,
going forward, our new investment flexibility enables us to use somewhat more
active investment strategies, which we believe will work to the benefit of
shareholders.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THE NUVEEN SELECT
PORTFOLIOS IN PARTICULAR?
While it is still too soon to determine the long-range effects of September 11
on the markets and on your Portfolios, it is our view that, from a strictly
financial standpoint, the attacks were responsible for a short-term disruption
in an economy that was already slowing. We anticipate that the U.S. economy will
recover, but grow at a slower pace, while inflation and interest rates should
remain low over the near term. In general, our outlook for the fixed-income
markets over the next twelve months remains positive. We expect to see
substantial municipal issuance during the fourth quarter, especially in New
York. New municipal issuance nationwide in 2001 is now expected to exceed $250
billion for the first time since 1998. At the same time, demand for tax-exempt
municipal bonds is anticipated to stay strong, as investors look for ways to
rebalance their portfolios and reduce risk.
Given recent events, we continue to watch the market very carefully, especially
those sectors that were directly impacted by the events of September 11 or that
would be affected by any further deceleration in the economy. We believe the
Nuveen Funds are currently well positioned, and we will continue to closely
monitor and respond to events as appropriate.
Looking specifically at the Nuveen Select Portfolios, our strategic approach to
bond calls over the past year enabled us to work through a number of calls and
improve the current call protection levels of these Portfolios. For the
remainder of 2001, NXQ and NXN have no scheduled calls, NXC has 2% of its
portfolio callable, and NXP and NXR could see 5% and 2%, respectively, called.
Between March and July 2002, however, all five of the Select Portfolios will
mark the 10-year anniversaries of their inceptions, reaching the point of the
bond market cycle typically associated with an increase in call exposure. During
2002, the Portfolios could experience bond calls affecting 50-71% of their
holdings, depending on market interest rates during that time. Given the current
level of rates, our strategy will be to hold higher-yielding bonds as long as
possible to help support the Portfolios' dividends, while we look for attractive
replacement opportunities. In line with newly amended policies, shareholders can
expect to see increased portfolio turnover, but this should provide us with
excellent opportunities to add the longer-term and, in NXC and NXN, non-insured
bonds that can provide support for the Portfolios' dividends.
The recent changes approved for the Nuveen Select Portfolios should also help us
further enhance their positioning for the market environment of the next twelve
months. As value-oriented investors, we plan to remain focused on ways we can
add value for our shareholders while using Nuveen's research expertise to watch
new issuance for opportunities that can help us adapt our strategies to changing
market conditions. Overall, we believe the Select Portfolios offer a very
attractive opportunity in the current market. In our opinion, especially given
their new investment flexibility, they should continue to play an important role
in investors' long-range financial programs, providing balance and
diversification, monthly tax-free income, quality investments, and a measure of
security in uncertain times such as these.
Nuveen Select Tax-Free Income Portfolio
Performance
Overview As of September 30, 2001
NXP
pie chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 44%
AA 14%
A 29%
BBB 7%
NR 5%
Other 1%
bar chart:
2000-2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Oct-00 0.075
Nov-00 0.075
Dec-00 0.075
Jan-01 0.075
Feb-01 0.075
Mar-01 0.073
Apr-01 0.073
May-01 0.073
Jun-01 0.073
Jul-01 0.073
Aug-01 0.073
Sep-01 0.071
line chart:
SHARE PRICE PERFORMANCE
10/1/00 14.31
13.88
14.00
14.25
14.38
14.50
14.38
14.25
14.44
14.31
14.50
14.75
15.00
15.25
15.50
15.31
15.50
15.46
15.07
15.24
15.30
15.01
15.00
14.75
14.50
14.95
14.66
14.87
14.93
14.97
14.86
14.85
14.70
15.00
14.92
14.75
14.91
15.04
14.95
14.88
14.91
14.75
14.84
15.09
14.95
15.05
15.12
15.14
15.12
14.08
9/30/01 14.35
Weekly Closing Price
Past Performance is not predictive of future results
PORTFOLIO STATISTICS
----------------------------------------------------
Share Price $14.35
----------------------------------------------------
Net Asset Value $15.02
----------------------------------------------------
Market Yield 5.94%
----------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.55%
----------------------------------------------------
Fund Net Assets ($000) $245,999
----------------------------------------------------
Average Effective Maturity (Years) 9.92
----------------------------------------------------
Average Duration 2.69
----------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 3/92)
----------------------------------------------------
ON SHARE PRICE ON NAV
----------------------------------------------------
1-Year 5.01% 6.98%
----------------------------------------------------
5-Year 5.52% 5.88%
----------------------------------------------------
Since Inception 5.69% 6.76%
----------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
----------------------------------------------------
U.S.Guaranteed 42%
----------------------------------------------------
Healthcare 12%
----------------------------------------------------
Transportation 11%
----------------------------------------------------
Tax Obligation/Limited 10%
----------------------------------------------------
Housing/Single Family 9%
====================================================
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
30.5%.
Nuveen Select Tax-Free Income Portfolio 2
Performance
Overview as of September 30, 2001
NXQ
pie chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 46%
AA 17%
A 22%
BBB 12%
NR 2%
Other 1%
bar chart:
2000-2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Oct-00 0.073
Nov-00 0.073
Dec-00 0.073
Jan-01 0.073
Feb-01 0.073
Mar-01 0.071
Apr-01 0.071
May-01 0.071
Jun-01 0.071
Jul-01 0.071
Aug-01 0.071
Sep-01 0.070
line chart:
SHARE PRICE PERFORMANCE
10/1/00 13.69
13.50
13.81
13.88
14.25
14.13
13.94
14.31
14.13
13.88
13.81
14.00
14.69
14.75
14.88
14.75
15.00
14.87
14.69
14.78
14.76
14.58
14.32
14.35
14.15
14.34
14.10
14.25
14.25
14.45
14.48
14.39
14.05
14.45
14.45
14.35
14.44
14.64
14.64
14.36
14.24
14.21
14.40
14.49
14.59
14.68
14.60
14.59
14.64
13.69
9/30/01 14.05
Weekly Closing Price
Past Performance is not predictive of future results
PORTFOLIO STATISTICS
----------------------------------------------------
Share Price $14.05
----------------------------------------------------
Net Asset Value $14.85
----------------------------------------------------
Market Yield 5.94%
----------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.55%
----------------------------------------------------
Fund Net Assets ($000) $261,400
----------------------------------------------------
Average Effective Maturity (Years) 8.64
----------------------------------------------------
Average Duration 1.90
----------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 5/92)
----------------------------------------------------
ON SHARE PRICE ON NAV
----------------------------------------------------
1-Year 6.96% 6.73%
----------------------------------------------------
5-Year 5.61% 5.78%
----------------------------------------------------
Since Inception 5.37% 6.52%
----------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
----------------------------------------------------
U.S.Guaranteed 44%
----------------------------------------------------
Healthcare 11%
----------------------------------------------------
Housing/Multifamily 11%
----------------------------------------------------
Transportation 9%
----------------------------------------------------
Education and Civic Organizations 7%
====================================================
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It is
calculated using the current market yield and a federal income tax rate of
30.5%.
NUVEEN Select Tax-Free Income Portfolio 3
Performance
Overview as of September 30, 2001
NXR
pie chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 38%
AA 25%
A 24%
BBB 10%
NR 3%
bar chart:
2000-2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Oct-00 0.068
Nov-00 0.068
Dec-00 0.068
Jan-01 0.068
Feb-01 0.068
Mar-01 0.067
Apr-01 0.067
May-01 0.067
Jun-01 0.067
Jul-01 0.067
Aug-01 0.067
Sep-01 0.067
line chart:
SHARE PRICE PERFORMANCE
10/1/00 13.19
13.06
13.00
13.13
13.38
13.38
13.31
13.38
13.25
13.19
13.31
13.56
14.00
14.38
14.44
14.13
14.25
14.20
13.95
13.83
14.00
13.81
13.50
13.75
13.70
13.83
13.85
13.50
13.70
13.80
13.88
13.82
13.70
13.80
13.66
13.63
13.58
13.79
13.84
13.61
13.70
13.60
13.76
13.88
13.79
13.97
14.05
14.19
14.05
13.10
9/30/01 13.58
Weekly Closing Price
Past Performance is not predictive of future results
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $13.58
---------------------------------------------------
Net Asset Value $14.51
---------------------------------------------------
Market Yield 5.88%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.46%
---------------------------------------------------
Fund Net Assets ($000) $188,123
---------------------------------------------------
Average Effective Maturity (Years) 10.51
---------------------------------------------------
Average Duration 2.29
---------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 7/92)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
1-Year 8.12% 7.03%
---------------------------------------------------
5-Year 6.11% 6.05%
---------------------------------------------------
Since Inception 4.86% 6.08%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
U.S.Guaranteed 37%
---------------------------------------------------
Transportation 12%
---------------------------------------------------
Utilities 12%
---------------------------------------------------
Healthcare 10%
---------------------------------------------------
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
calculated using the current market yield and a federal income tax rate of
30.5%.
NUVEEN California Select Tax-Free Income Portfolio
Performance
Overview as of September 30, 2001
NXC
pie chart:
CREDIT QUALITY
Insured 68%
Insured and U.S. Guaranteed 32%
bar chart:
2000-2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct-00 0.066
Nov-00 0.066
Dec-00 0.066
Jan-01 0.066
Feb-01 0.066
Mar-01 0.064
Apr-01 0.064
May-01 0.064
Jun-01 0.064
Jul-01 0.064
Aug-01 0.064
Sep-01 0.064
line chart:
SHARE PRICE PERFORMANCE
10/1/00 14.13
13.88
13.50
13.63
13.88
13.88
13.88
13.81
13.81
13.75
13.94
13.94
14.25
14.56
14.69
14.75
14.92
14.60
14.62
14.69
14.82
14.56
14.40
14.01
13.94
13.95
13.88
13.79
13.70
14.01
14.35
14.39
14.35
14.27
14.35
14.27
14.18
14.40
14.50
14.36
14.24
14.23
14.34
14.44
14.56
14.66
14.71
14.73
14.78
13.90
9/30/01 14.19
Weekly Closing Price
Past Performance is not predictive of future results
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $14.19
---------------------------------------------------
Net Asset Value $14.79
---------------------------------------------------
Market Yield 5.41%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.78%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.59%
---------------------------------------------------
Fund Net Assets ($000) $92,570
---------------------------------------------------
Average Effective Maturity (Years) 10.14
---------------------------------------------------
Average Duration 2.93
---------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 6/92)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
1-Year 3.88% 6.65%
---------------------------------------------------
5-Year 5.91% 5.81%
---------------------------------------------------
Since Inception 4.98% 6.03%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
U.S.Guaranteed 32%
---------------------------------------------------
Transportation 18%
---------------------------------------------------
Tax Obligation/Limited 16%
---------------------------------------------------
Tax Obligation/General 12%
---------------------------------------------------
Healthcare 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. It is
calculated using the current market yield and a federal income tax rate of
30.5%. 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%.
2 The Fund also paid shareholders a capital gains distribution in December 2000
of $0.0127 per share.
Nuveen New York Select Tax-Free Income Portfolio
Performance
Overview As of September 30, 2001
NXN
pie chart:
CREDIT QUALITY
Insured 63%
Insured and U.S. Guaranteed 33%
U.S. Guaranteed 4%
bar chart:
2000-2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Oct-00 0.065
Nov-00 0.065
Dec-00 0.065
Jan-01 0.065
Feb-01 0.065
Mar-01 0.063
Apr-01 0.063
May-01 0.063
Jun-01 0.063
Jul-01 0.063
Aug-01 0.063
Sep-01 0.060
line chart:
SHARE PRICE PERFORMANCE
10/1/00 13.25
13.00
12.81
12.75
12.94
12.75
12.69
12.88
12.94
12.81
13.13
12.88
13.69
13.94
13.75
14.13
14.20
14.20
13.75
13.85
14.20
14.21
14.00
13.70
14.05
14.02
14.15
14.20
14.05
14.20
13.95
13.90
13.90
13.98
14.13
14.05
14.20
14.22
14.30
14.42
14.15
14.30
14.35
14.25
14.40
14.37
14.46
14.34
14.31
13.28
9/30/01 13.75
Weekly Closing Price
Past Performance is not predictive of future results
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $13.75
---------------------------------------------------
Net Asset Value $14.49
---------------------------------------------------
Market Yield 5.24%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.54%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.12%
---------------------------------------------------
Fund Net Assets ($000) $56,607
---------------------------------------------------
Average Effective Maturity (Years) 11.93
---------------------------------------------------
Average Duration 3.25
---------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 6/92)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
1-Year 9.65% 6.58%
---------------------------------------------------
5-Year 6.04% 5.61%
---------------------------------------------------
Since Inception 4.64% 5.69%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
U.S.Guaranteed 37%
---------------------------------------------------
Education and Civic Organizations 15%
---------------------------------------------------
Healthcare 10%
---------------------------------------------------
Water and Sewer 9%
---------------------------------------------------
Tax Obligation/General 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. It is
calculated using the current market yield and a federal income tax rate of
30.5%. 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 35.5%.
Shareholder
MEETING REPORT
The annual shareholder meeting was held in Chicago, Illinois on August 1, 2001.
NXP NXQ NXR NXC NXN
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE TRUSTEES WAS REACHED AS FOLLOWS:
Common Common Common Common Common
Shares Shares Shares Shares Shares
====================================================================================================================================
James E. Bacon
For 10,678,438 11,206,487 7,695,055 3,635,499 2,220,856
Withhold 154,735 210,200 152,095 115,301 118,246
------------------------------------------------------------------------------------------------------------------------------------
Total 10,833,173 11,416,687 7,847,150 3,750,800 2,339,102
====================================================================================================================================
William E. Bennett
For 10,690,156 11,207,350 7,690,443 3,635,525 2,221,756
Withhold 143,017 209,337 156,707 115,275 117,346
------------------------------------------------------------------------------------------------------------------------------------
Total 10,833,173 11,416,687 7,847,150 3,750,800 2,339,102
====================================================================================================================================
Jack B. Evans
For 10,690,974 11,212,498 7,689,343 3,635,525 2,221,756
Withhold 142,199 204,189 157,807 115,275 117,346
------------------------------------------------------------------------------------------------------------------------------------
Total 10,833,173 11,416,687 7,847,150 3,750,800 2,339,102
====================================================================================================================================
William L. Kissick
For 10,681,019 11,211,197 7,695,056 3,635,499 2,221,856
Withhold 152,154 205,490 152,094 115,301 117,246
------------------------------------------------------------------------------------------------------------------------------------
Total 10,833,173 11,416,687 7,847,150 3,750,800 2,339,102
====================================================================================================================================
Thomas E. Leafstrand
For 10,680,643 11,207,812 7,695,269 3,634,375 2,223,856
Withhold 152,530 208,875 151,881 116,425 115,246
------------------------------------------------------------------------------------------------------------------------------------
Total 10,833,173 11,416,687 7,847,150 3,750,800 2,339,102
====================================================================================================================================
Timothy R. Schwertfeger
For 10,691,009 11,211,956 7,689,788 3,635,525 2,222,756
Withhold 142,164 204,731 157,362 115,275 116,346
------------------------------------------------------------------------------------------------------------------------------------
Total 10,833,173 11,416,687 7,847,150 3,750,800 2,339,102
====================================================================================================================================
Sheila W. Wellington
For 10,669,905 11,202,957 7,693,449 3,635,075 2,222,856
Withhold 163,268 213,730 153,701 115,725 116,246
------------------------------------------------------------------------------------------------------------------------------------
Total 10,833,173 11,416,687 7,847,150 3,750,800 2,339,102
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 10,657,364 11,202,603 7,721,873 3,564,284 2,247,766
Against 47,436 84,818 67,113 49,568 54,233
Abstain 128,373 129,266 58,164 136,948 37,103
------------------------------------------------------------------------------------------------------------------------------------
Total 10,833,173 11,416,687 7,847,150 3,750,800 2,339,102
====================================================================================================================================
APPROVAL OF AMENDMENT TO THE DECLARATION OF TRUST
For 7,926,609 8,157,867 5,964,956 2,837,458 1,680,810
Against 415,447 430,894 418,711 228,027 143,828
Abstain 315,840 375,623 223,743 205,958 63,914
Broker Non-Vote 2,175,277 2,452,303 1,239,740 479,357 450,550
------------------------------------------------------------------------------------------------------------------------------------
Total 10,833,173 11,416,687 7,847,150 3,750,800 2,339,102
====================================================================================================================================
APPROVAL OF AMENDMENT TO A FUNDAMENTAL POLICY
For 2,621,566 1,591,996
Against 443,703 202,263
Abstain 206,174 94,293
Broker Non-Vote 479,357 450,550
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- 3,750,800 2,339,102
====================================================================================================================================
Nuveen Select Tax-Free Income Portfolio (NXP)
Portfolio of
INVESTMENTS September 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.2%
$ 495 Alabama Housing Finance Authority, Single Family Mortgage Revenue 4/04 at 102 Aaa $ 524,101
Bonds (Collateralized Home Mortgage Revenue Bond Program),
1994 Series A-1 Bonds, 6.550%, 10/01/14
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.1%
2,500 Little Rock Health Facilities Board (Arkansas), Refunding Revenue Bonds 4/02 at 102 A 2,595,900
(Baptist Medical Center/Parkway Village Project), Series 1992,
7.000%, 10/01/17
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 6.5%
4,750 State Public Works Board of the State of California, Lease Revenue Bonds 3/04 at 102 Aaa 5,338,620
(California Community Colleges), 1994 Series B (Various Community
College Projects), 7.000%, 3/01/14 (Pre-refunded to 3/01/04)
3,000 State Public Works Board of the State of California, Lease Revenue Bonds 11/04 at 102 Aaa 3,443,160
(Department of Corrections), 1994 Series A (California State Prison -
Monterey County (Soledad II)), 6.875%, 11/01/14 (Pre-refunded to 11/01/04)
4,905 California Statewide Communities Development Authority, Hospital 8/02 at 102 A3*** 5,160,109
Revenue Certificates of Participation (Cedars-Sinai Medical Center),
Series 1992, 6.500%, 8/01/15 (Pre-refunded to 8/01/02)
2,000 Los Angeles County Metropolitan Transportation Authority, California, 7/03 at 102 AAA 2,073,940
Proposition A, Sales Tax Revenue Refunding Bonds, Series 1993-A,
5.625%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 8.7%
Colorado Housing Finance Authority, Single Family Program Senior
Revenue Bonds, Series 1992A-1:
2,130 6.800%, 11/01/12 5/02 at 102 AA+ 2,186,509
595 6.875%, 11/01/16 5/02 at 102 AA+ 610,690
5,000 City and County of Denver, Colorado, Airport System Revenue Refunding 11/11 at 100 AAA 5,247,300
Bonds, Series 2001B, 5.625%, 11/15/17 (Alternative Minimum Tax)
10,750 City and County of Denver, Colorado, Airport System Revenue Bonds, No Opt. Call A 13,311,295
Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.4%
1,000 District of Columbia, Hospital Revenue and Refunding Bonds (Medlantic 8/06 at 102 AAA 1,101,390
Healthcare Group, Inc. Issue), Series 1996A, 5.750%, 8/15/16
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.1%
250 Escambia County, Florida, Pollution Control Revenue Bonds (Champion 12/03 at 102 BBB 248,645
International Corporation Project), Series 1993, 5.875%, 6/01/22
(Alternative Minimum Tax)
7,000 State of Florida Board of Education, Public Education Capital Outlay 6/02 at 101 AAA 7,282,100
Bonds, Series 1991-C, 6.625%, 6/01/22 (Pre-refunded to 6/01/02)
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.5%
1,330 State of Hawaii, Certificates of Participation (Kapolei State Office 11/08 at 101 AAA 1,335,240
Building), 1998 Series A, 5.000%, 5/01/17
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 15.3%
2,000 Central Lake County Joint Action Water Agency, Lake County, Illinois, 5/03 at 102 AAA 2,020,020
Interim Water Revenue Bonds, Series 1993, 5.375%, 5/01/20
City of Chicago Heights, Illinois, General Obligation Bonds, Series 1993
(Corporate Purpose Bonds):
3,820 5.650%, 12/01/15 12/08 at 100 AAA 4,059,629
2,600 5.650%, 12/01/17 12/08 at 100 AAA 2,732,288
2,500 City of Chicago, Illinois, O'Hare International Airport Special Facility No Opt. Call B2 2,086,775
Revenue Refunding Bonds (United Air Lines Inc. Project), Series 2001C,
6.300%, 5/01/16
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 7,000 The County of Cook, Illinois, General Obligation Bonds, Series 1992A, 11/02 at 102 AAA $ 7,471,520
6.600%, 11/15/22 (Pre-refunded to 11/15/02)
1,000 Illinois Educational Facilities Authority, Revenue Bonds (Midwestern 5/08 at 101 A 1,010,540
University), Series 1998B, 5.500%, 5/15/18
3,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds 7/03 at 102 AAA 3,250,950
(Loyola University of Chicago), Series 1989-A, 6.100%, 7/01/15
(Pre-refunded to 7/01/03)
2,365 Illinois Health Facilities Authority, Revenue Bonds and Revenue Refunding No Opt. Call N/R*** 2,666,727
Bonds, Series 1992B (Evangelical Hospitals Corporation), 6.500%, 4/15/09
3,850 Illinois Health Facilities Authority, Revenue Bonds (Sarah Bush Lincoln 5/02 at 102 Aaa 4,049,546
Health Center), Series 1992, 7.250%, 5/15/22 (Pre-refunded to 5/15/02)
1,320 Illinois Health Facilities Authority, Revenue Bonds (Decatur Memorial 10/11 at 100 A 1,349,924
Hospital), Series 2001, 5.600%, 10/01/16
800 Illinois Housing Development Authority, Homeowner Mortgage Revenue 2/10 at 100 AA 842,440
Bonds, Series 2000-D3, 5.700%, 8/01/17
1,500 Illinois Housing Development Authority, Homeowner Mortgage Revenue 7/10 at 100 AA 1,582,755
Bonds, Series 1999-G1, 5.700%, 8/01/17
2,000 State of Illinois, General Obligation Bonds, Series 1994, 5.875%, 8/01/14 8/04 at 102 AA 2,109,620
2,500 Regional Transportation Authority (Cook, DuPage, Kane, Lake, McHenry 6/03 at 102 AAA 2,689,475
and Will Counties in Illinois), General Obligation Bonds, Series 1993A,
5.800%, 6/01/13 (Pre-refunded to 6/01/03)
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.7%
5,000 Duneland School Building Corporation, Indiana, First Mortgage Bonds, 2/09 at 101 AAA 5,047,300
Series 1999 Refunding, 5.125%, 2/01/18
3,000 Indiana Bond Bank, Special Hospital Program (Hendricks Community 4/02 at 102 A+ 3,115,470
Hospital Financing Program), Series 1992A, 7.125%, 4/01/13
Indiana Bond Bank, Special Program Bonds, Series 1992 A:
1,000 7.000%, 8/01/12 2/02 at 102 A+ 1,036,260
2,250 7.000%, 8/01/18 2/02 at 102 A+ 2,331,585
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 3.8%
9,000 City of Wichita, Kansas, Revenue Bonds (CSJ Health System of 11/01 at 102 A+*** 9,250,020
Wichita, Inc.), Series 1985 XXV (Remarketed), 7.200%, 10/01/15
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 2.0%
1,100 County of Jefferson, Kentucky, Health System Revenue Bonds, 10/08 at 101 AAA 1,127,104
Series 1998 (Alliant Health System, Inc.), 5.125%, 10/01/18
3,230 Lexington-Fayette Urban County Government (Kentucky), Governmental 11/04 at 102 AAA 3,674,351
Project Revenue Bonds, Series 1994 (University of Kentucky Alumni
Association, Inc. - Commonwealth Library Project), 6.750%,
11/01/15 (Pre-refunded to 11/01/04)
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.6%
875 Maine Educational Loan Authority, Educational Loan Revenue Bonds, 12/02 at 102 N/R 908,119
Series 1992A-2 (Supplemental Educational Loan Program),
7.150%, 12/01/16 (Alternative Minimum Tax)
Maine Educational Loan Authority, Educational Loan Revenue
Bonds, Series 1992A-1 (Supplemental Educational Loan Program):
1,390 6.800%, 12/01/07 (Alternative Minimum Tax) 12/02 at 102 Aaa 1,449,256
1,575 7.000%, 12/01/16 (Alternative Minimum Tax) 12/02 at 102 Aaa 1,632,929
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.1%
500 Massachusetts Health and Educational Facilities Authority, Revenue 7/11 at 101 AA- 537,935
Bonds, Partners HealthCare System Issue, Series C, 6.000%, 7/01/17
2,000 Plymouth County (Massachusetts), Certificates of Participation 10/02 at 102 Aaa 2,135,280
(Plymouth County Correctional Facility), Series A, 7.000%, 4/01/22
(Pre-refunded to 10/01/02)
Nuveen Select Tax-Free Income Portfolio (NXP) (continued)
Portfolio of INVESTMENTS September 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.5%
$ 1,175 Minnesota Housing Finance Agency, Single Family Mortgage Revenue 7/08 at 101 AA+ $ 1,199,099
Bonds, Series 1995A, 5.200%, 1/01/17
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.6%
3,600 Calhoun County (Mississippi), Solid Waste Disposal Revenue Bonds 4/07 at 103 A- 3,898,224
(Weyerhauser Company Project), Series 1992, 6.875%, 4/01/16
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.7%
1,800 New Hampshire Housing Finance Authority, Single Family Mortgage 5/11 at 100 Aa2 1,837,746
Acquisition Bonds, Series 2001A, 5.600%, 7/01/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 10.9%
7,250 Metropolitan Transportation Authority, New York, Commuter Facilities 1/02 at 102 A3 7,419,143
Service Contract Bonds of 1987, Series 5, 7.000%, 7/01/12
3,000 Metropolitan Transportation Authority, New York, Transit Facilities 7/02 at 100 AA- 3,079,860
Service Contract Bonds, Series N, 6.000%, 7/01/11
City of New York, New York, General Obligation Bonds, Fiscal
1995 Series A:
305 6.250%, 8/01/10 (Pre-refunded to 8/01/04) 8/04 at 101 1/2 Aaa 340,212
4,865 6.250%, 8/01/10 8/04 at 101 1/2 A 5,348,192
4,465 New York State Dormitory Authority, State University Educational 5/02 at 102 AAA 4,699,323
Facilities Revenue Bonds, Series 1991A, 7.250%, 5/15/18
(Pre-refunded to 5/15/02)
1,600 Dormitory Authority of the State of New York, Mount Sinai Health 7/10 at 101 BBB 1,768,576
Obligated Group Revenue Bonds (New York University),
Series 2000A, 6.500%, 7/01/17
1,365 New York Local Government Assistance Corporation (A Public Benefit 4/02 at 102 AAA 1,426,616
Corporation of the State of New York), Series 1991D Bonds,
7.000%, 4/01/18 (Pre-refunded to 4/01/02)
New York State Medical Care Facilities Finance Agency, Mental
Health Services Facilities Improvement Revenue Bonds, 1991
Series D:
1,395 7.400%, 2/15/18 (Pre-refunded to 2/15/02) 2/02 at 102 AA-*** 1,450,898
1,395 7.400%, 2/15/18 2/02 at 102 AA- 1,446,615
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.2%
2,790 Ohio Housing Finance Agency, Residential Mortgage Revenue Bonds, 9/07 at 102 Aaa 2,971,378
Series 1997A Remarketed, 6.050%, 9/01/17 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.5%
7,235 Delaware County Authority (Pennsylvania), First Mortgage Revenue 4/02 at 102 N/R*** 7,588,068
Bonds (The Dunwoody Project), Series 1992, 8.125%, 4/01/17
(Pre-refunded to 4/01/02)
805 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue 4/02 at 102 AA+ 833,811
Bonds, Series 1992-33, 6.900%, 4/01/17
Pennsylvania Higher Educational Facilities Authority, Revenue
Bonds (Thomas Jefferson University), 1992 Series A:
1,750 6.625%, 8/15/09 (Pre-refunded to 8/15/02) 8/02 at 102 A1*** 1,851,553
750 6.625%, 8/15/09 8/02 at 102 AAA 791,738
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.1%
5,000 South Carolina Housing Finance and Development Authority, Multifamily 5/02 at 102 Aaa 5,159,400
Housing Revenue Bonds, 1992 Series A, 6.875%, 11/15/23
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 2.3%
5,750 Memphis-Shelby County Airport Authority (Tennessee), Airport Special 7/03 at 102 BBB 5,753,335
Facilities and Project Revenue Bonds (Federal Express Corporation),
Series 1993, 6.200%, 7/01/14 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 9.8%
9,825 Harris County Health Facilities Development Corporation (Texas), 6/02 at 102 A3*** 10,347,002
Hospital Revenue Bonds (Memorial Hospital System Project),
Series 1992, 7.125%, 6/01/15 (Pre-refunded to 6/01/02)
4,000 Port of Corpus Christi Authority of Nueces County (Texas), Pollution 4/02 at 102 BBB 4,139,400
Control Revenue Bonds (Hoechst Celanese Corporation), Series 1992,
6.875%, 4/01/17 (Alternative Minimum Tax)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 4,190 Red River Authority (Texas), Pollution Control Revenue Bonds (Hoechst 4/02 at 102 BBB $ 4,334,513
Celanese Corporation), Series 1992, 6.875%, 4/01/17
(Alternative Minimum Tax)
City of San Antonio, Texas, Water System Revenue Refunding Bonds,
Series 1992:
1,450 6.000%, 5/15/16 (Pre-refunded to 5/15/02) 5/02 at 100 AAA 1,485,424
95 6.000%, 5/15/16 (Pre-refunded to 5/15/07) 5/07 at 100 AAA 106,960
465 6.000%, 5/15/16 No Opt. Call AAA 528,510
2,990 6.000%, 5/15/16 5/02 at 100 AAA 3,048,066
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.1%
5,070 Virginia Housing Development Authority, Commonwealth Mortgage 1/02 at 102 AA+ 5,192,897
Bonds, 1992 Series A, 7.100%, 1/01/17
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.0%
2,500 Public Utility District No. 1 of Snohomish County, Washington, Electric 1/03 at 100 A+*** 2,641,425
System Refunding Revenue Bonds, Series 1991 A, 7.000%, 1/01/16
(Pre-refunded to 1/01/03)
5,700 Public Utility District No. 1 of Snohomish County, Washington, Generation 1/02 at 102 Aaa 6,726,513
System Revenue Bonds, Series 1989, 6.750%, 1/01/12
2,750 Washington Health Care Facilities Authority, Revenue Bonds, Series 1992 2/02 at 102 AA-*** 2,852,383
(Sacred Heart Medical Center, Spokane), 6.875%, 2/15/12
(Pre-refunded to 2/15/02)
9,750 Washington State Health Care Facilities Authority, Revenue Bonds, 10/11 at 100 AAA 9,803,040
Series 2001A, Providence Health System, 5.125%, 10/01/17
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.3%
1,885 Marshall County, West Virginia, Special Obligation Refunding Bonds, No Opt. Call AAA 2,171,120
Series 1992, 6.500%, 5/15/10
1,000 West Virginia Housing Development Fund, Housing Finance Bonds, 5/02 at 103 AAA 1,037,360
1992 Series A, 7.000%, 5/01/24
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.1%
5,000 Wisconsin Housing and Economic Development Authority, Multifamily 4/02 at 102 AA 5,154,950
Housing Revenue Bonds, 1992 Series B, 7.050%, 11/01/22
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 1.3%
3,000 Wyoming Community Development Authority, Single Family Mortgage 11/01 at 103 AA 3,094,950
Revenue Bonds (Federally Insured or Guaranteed Mortgage Loans),
Series 1988-G, 7.200%, 6/01/10 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 228,845 Total Investments (cost $225,595,168) - 98.4% 242,155,117
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 3,844,123
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 245,999,240
====================================================================================================================
* 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.
Nuveen Select Tax-Free Income Portfolio 2 (NXQ)
Portfolio of
INVESTMENTS September 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 5.4%
$ 3,250 State Public Works Board of the State of California, Lease Revenue 3/04 at 102 Aaa $ 3,652,740
Bonds (California Community Colleges), 1994 Series B (Various
Community College Projects), 7.000%, 3/01/14 (Pre-refunded to
3/01/04)
2,000 State Public Works Board of the State of California, Lease Revenue No Opt. Call Aa2 2,229,400
Refunding Bonds (The Regents of the University of California),
1993 Series A (Various University of California Projects), 5.500%, 6/01/14
5,000 State Public Works Board of the State of California, Lease Revenue 11/04 at 102 Aaa 5,738,600
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)
500 State Public Works Board of the State of California, Lease Revenue 12/08 at 101 A1 523,400
Refunding Bonds (California Community Colleges) (Various Community
College Projects), 1998 Series A, 5.250%, 12/01/16
500 City of Contra Costa Water District (California), Water Revenue Bonds, 10/07 at 100 AA- 510,260
Refunding Series 1997H, 5.000%, 10/01/17
500 County of Contra Costa, California, Certificates of Participation 11/07 at 102 AAA 526,085
(Merrithew Memorial Hospital Replacement Project), Refunding
Series of 1997, 5.375%, 11/01/17
1,000 City of Fresno, California, Health Facility Revenue Bonds, Series 1993B 12/03 at 102 AAA 1,046,140
(Holy Cross Health System Corporation), 5.625%, 12/01/15
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 7.5%
2,165 Colorado Housing Finance Authority, Single Family Program Senior Bonds, 5/02 at 102 AA+ 2,244,001
Series 1992A-3, 7.000%, 11/01/24 (Alternative Minimum Tax)
5,000 City and County of Denver, Colorado, Airport System Revenue Refunding 11/11 at 100 AAA 5,247,300
Bonds, Series 2001B, 5.625%, 11/15/17 (Alternative Minimum Tax)
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992B:
2,335 7.250%, 11/15/12 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 2,506,085
9,130 7.250%, 11/15/12 (Alternative Minimum Tax) 11/02 at 102 A 9,635,437
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 5.1%
4,600 District of Columbia, Hospital Revenue Refunding Bonds, Washington 8/02 at 102 A3*** 4,883,498
Hospital Center Medlantic Issue, Series 1992A, 7.125%, 8/15/19
(Pre-refunded to 8/15/02)
500 District of Columbia, Hospital Revenue and Refunding Bonds (Medlantic 8/06 at 102 AAA 550,695
Healthcare Group, Inc. Issue), Series 1996A, 5.750%, 8/15/16
7,500 District of Columbia (Washington, D.C.), General Obligation Bonds, 6/02 at 102 AAA 7,857,900
Series 1992B, 6.300%, 6/01/12 (Pre-refunded to 6/01/02)
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.3%
8,180 Hillsborough County (Florida), Environmentally Sensitive Land Acquisition 7/02 at 102 A1*** 8,604,624
and Protection Program Bonds, Series 1992, 6.375%, 7/01/11
(Pre-refunded to 7/01/02)
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.4%
1,100 State of Hawaii, Certificates of Participation (Kapolei State 11/08 at 101 AAA 1,104,334
Office Building), 1998 Series A, 5.000%, 5/01/17
-----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 13.8%
8,420 Chicago Metropolitan Housing Development Corporation (Illinois), Housing 7/02 at 102 AA 8,689,524
Development Revenue Refunding Bonds (FHA-Insured Mortgage Loans -
Section 8 Assisted Projects), Series 1992A, 6.800%, 7/01/17
2,400 City of Chicago, Illinois, O'Hare International Airport Special Facility No Opt. Call B2 2,003,304
Revenue Refunding Bonds (United Air Lines Inc. Project), Series 2001C,
6.300%, 5/01/16
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 8,070 The County of Cook, Illinois, General Obligation Bonds, Series 1992A, 11/02 at 102 AAA $ 8,613,595
6.600%, 11/15/22 (Pre-refunded to 11/15/02)
2,500 Illinois Educational Facilities Authority, Revenue Bonds 12/03 at 102 BBB 2,538,750
(Columbia College),Series 1993, 6.125%, 12/01/18
Illinois Educational Facilities Authority, Revenue Refunding Bonds (Columbia
College), Series 1992:
2,610 6.875%, 12/01/17 (Pre-refunded to 12/01/04) 12/04 at 100 N/R*** 2,931,239
1,140 6.875%, 12/01/17 12/04 at 100 BBB 1,192,406
1,900 Illinois Housing Development Authority, Homeowner Mortgage Revenue 2/10 at 100 AA 2,000,795
Bonds, Series 2000-D3, 5.700%, 8/01/17
Metropolitan Pier and Exposition Authority (Illinois), McCormick
Place Expansion Project Bonds, Series 1992A:
2,205 6.500%, 6/15/22 (Pre-refunded to 6/15/03) 6/03 at 102 Aaa 2,400,694
45 6.500%, 6/15/22 6/03 at 102 Aa3 47,089
5,000 Regional Transportation Authority (Cook, DuPage, Kane, Lake, McHenry 6/03 at 102 AAA 5,378,950
and Will Counties in Illinois), General Obligation Bonds, Series 1993A,
5.800%, 6/01/13 (Pre-refunded to 6/01/03)
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 5.7%
2,005 Howard County Jail and Juvenile Detention Center Corporation (Indiana), 1/02 at 102 A1*** 2,068,879
First Mortgage Revenue Bonds, Series 1992, 6.850%, 1/01/12
(Pre-refunded to 1/01/02)
10,000 Indiana Educational Facilities Authority, Educational Facilities Refunding 1/02 at 102 AAA 10,292,300
Revenue Bonds (Butler University Project), Series 1992A, 6.600%, 1/01/18
2,400 Westfield-Washington South School Building Corporation (Indiana), First 7/02 at 102 A*** 2,530,656
Mortgage Revenue Bonds, Series 1992, 6.500%, 7/15/13
(Pre-refunded to 7/15/02)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.9%
2,380 Kentucky Housing Corporation, Housing Revenue Bonds (Federally Insured 7/02 at 102 AAA 2,444,070
or Guaranteed Mortgage Loans), Series 1992A, 6.600%, 7/01/11
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 4.7%
Louisiana Public Facilities Authority, Revenue Bonds, 1992 Series (Tulane
University of Louisiana):
2,590 6.625%, 11/15/21 (Pre-refunded to 11/15/02) 11/02 at 102 A+*** 2,763,660
8,835 6.625%, 11/15/21 (Pre-refunded to 11/15/02) 11/02 at 102 A+*** 9,427,387
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.2%
3,000 Massachusetts Health and Educational Facilities, Revenue Bonds (Jordan 10/02 at 102 A2*** 3,195,750
Memorial Hospital Issue), Series 1992C, 6.875%, 10/01/22
(Pre-refunded to 10/01/02)
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.6%
City of Royal Oak Hospital Finance Authority (Michigan), Revenue Bonds
(Beaumont Properties, Inc.), Series 1992E:
435 6.625%, 1/01/19 (Pre-refunded to 1/01/02) 1/02 at 102 AAA 448,655
3,565 6.625%, 1/01/19 1/02 at 102 AA 3,663,251
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.8%
2,065 City of Billings, Montana, Tax Increment Urban Renewal Bonds, Refunding 3/02 at 101 Baa3 2,108,819
Series 1992, 7.100%, 3/01/08
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 0.2%
500 Las Vegas Convention and Visitors Authority, Clark County, Nevada, General 7/06 at 101 AAA 517,005
Obligation Bonds (Limited Tax), Series 1996, 5.500%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 11.0%
3,850 Metropolitan Transportation Authority, New York, Transit Facilities 7/02 at 100 AA- 3,952,487
Service Contract Bonds, Series N, 6.000%, 7/01/11
City of New York, New York, General Obligation Bonds, Fiscal
1992 Series H:
7,965 7.100%, 2/01/11 (Pre-refunded to 2/01/02) 2/02 at 101 1/2 Aaa 8,220,915
35 7.100%, 2/01/11 2/02 at 101 1/2 A 36,119
2,960 7.100%, 2/01/12 (Pre-refunded to 2/01/02) at 101 1/2 A*** 3,055,105
190 7.100%, 2/01/12 2/02 at 101 1/2 A 196,072
Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued)
Portfolio of INVESTMENTS September 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 2,700 Dormitory Authority of the State of New York, Mount Sinai Health Obligated 7/10 at 101 BBB $ 2,984,472
Group Revenue Bonds (New York University), Series 2000A,
6.500%, 7/01/17
4,000 New York State Medical Care Facilities Finance Agency, Hospital FHA 2/05 at 102 AAA 4,581,000
Insured Mortgage Revenue Bonds, Series 1994A, 6.750%, 8/15/14
(Pre-refunded to 2/15/05)
5,000 Triborough Bridge and Tunnel Authority, New York, Convention Center No Opt. Call AA- 5,835,900
Bonds, Series E, 7.250%, 1/01/10
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.4%
2,800 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 3,182,452
3,000 County of Erie, Ohio Hospital Improvement and Refunding Revenue Bonds, 1/02 at 102 A 3,072,510
Series 1992 (Firelands Community Hospital Project), 6.750%, 1/01/15
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.4%
6,000 Oklahoma City Water Utilities Trust (Oklahoma), Water and Sewer Revenue 7/02 at 100 AAA 6,178,320
Bonds, 6.400%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.3%
1,000 Dauphin County General Authority (Pennsylvania), Health System Revenue 2/09 at 101 AAA 1,012,570
Bonds, Series of 1999 (Pinnacle Health System Project), 5.125%, 8/15/17
6,295 Pennsylvania Intergovernmental Cooperation Authority, Special Tax Revenue 6/02 at 100 Aaa 6,504,875
Bonds (City of Philadelphia Funding Program), Series of 1992, 6.800%,
6/15/22 (Pre-refunded to 6/15/02)
1,000 Philadelphia Authority for Industrial Development, Pennsylvania, Airport 7/11 at 101 AAA 1,039,860
Revenue Bonds, Series 2001A (Philadelphia Airport System Project),
5.500%, 7/01/17 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.2%
5,500 Rhode Island Depositors Economic Corporation, Special Obligation Bonds, 8/02 at 102 AAA 5,828,680
1992 Series A, 6.900%, 8/01/13 (Pre-refunded to 8/01/02)
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.8%
7,000 Richland County (South Carolina), Solid Waste Disposal Facilities Revenue 5/02 at 102 BBB 7,246,890
Bonds (Union Camp Corporation Project), Series 1992-A, 6.750%, 5/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 3.6%
4,500 Memphis-Shelby County Airport Authority (Tennessee), Special Facilities 3/02 at 103 BBB 4,640,445
Revenue Bonds, Series 1984 (Federal Express Corporation), 7.875%, 9/01/09
4,695 Tennessee Housing Development Agency, Homeownership Program Bonds, 7/02 at 102 AA 4,840,310
Issue WR, 6.800%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 7.8%
3,275 Bexar County Health Facilities Development Corporation (Texas), Hospital 8/04 at 102 AAA 3,707,857
Revenue Bonds (Baptist Memorial Hospital System Project), Series 1994,
6.900%, 2/15/14 (Pre-refunded to 8/15/04)
4,675 Cleveland Housing Corporation (Texas), Mortgage Revenue Refunding Bonds, 1/02 at 101 AAA 4,774,671
Series 1992-C (FHA-Insured - Section 8 Project), 7.375%, 7/01/24
2,500 Harris County Health Facilities Development Corporation, Texas 10/05 at 102 AAA 2,629,875
(Children's Hospital Project), Series 1995, 5.500%, 10/01/16
7,600 Port of Corpus Christi Authority of Nueces County (Texas), 4/02 at 102 BBB 7,864,860
Pollution Control Revenue Bonds (Hoechst Celanese Corporation),
Series 1992, 6.875%, 4/01/17 (Alternative Minimum Tax)
1,460 Red River Authority (Texas), Pollution Control Revenue Bonds (Hoechst 4/02 at 102 BBB 1,510,355
Celanese Corporation), Series 1992, 6.875%, 4/01/17 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.7%
1,655 Municipal Building Authority of Ogden City School District, Weber County, 1/02 at 101 A3*** 1,728,002
Utah, Lease Revenue Bonds (Central Middle School Project), Series 1992,
6.700%, 1/01/12 (Pre-refunded to 1/01/02)
165 Utah Housing Finance Agency, Single Family Mortgage Purchase Refunding 7/02 at 102 Aaa 169,508
Senior Bonds, Series 1992, 6.800%, 1/01/12
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 2.6%
$ 3,000 Vermont Housing Finance Agency, Multifamily Housing Bonds, 1999 Series C, 2/09 at 100 AAA $ 3,111,570
5.800%, 8/15/16
3,600 Vermont Industrial Development Authority, Industrial Development Refunding 9/02 at 102 A 3,717,252
Revenue Bonds (Stanley Works Project), Series 1992, 6.750%, 9/01/10
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.8%
2,000 Industrial Development Authority of Covington-Alleghany County, Virginia, 4/02 at 102 N/R*** 2,083,880
Hospital Facilities Revenue Bonds (Alleghany Regional Hospital), Series
1992, 6.625%, 4/01/12 (Pre-refunded to 4/01/02)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 2.6%
6,715 Washington State Health Care Facilities Authority, Revenue Bonds, Series 10/11 at 100 AAA 6,751,530
2001A, Providence Health System, 5.125%, 10/01/17
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.7%
1,750 West Virginia School Building Authority, Capital Improvement Revenue Bonds, 7/02 at 102 A+*** 1,843,432
Series 1992-A, 6.625%, 7/01/22 (Pre-refunded to 7/01/02)
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.0%
10,000 Wisconsin Housing and Economic Development Authority, Multifamily 4/02 at 102 AA 10,333,300
Housing Revenue Bonds, 1992 Series D, 7.200%, 11/01/13 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 242,210 Total Investments (cost $240,084,456) - 97.5% 254,752,351
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 6,647,167
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 261,399,518
====================================================================================================================
* 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.
Nuveen Select Tax-Free Income Portfolio 3 (NXR)
Portfolio of
INVESTMENTS September 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 2.9%
$ 3,000 State Public Works Board of the State of California, Lease Revenue Bonds 11/04 at 102 Aaa $ 3,443,160
(Department of Corrections), 1994 Series A (California State Prison -
Monterey County (Soledad II)), 6.875%, 11/01/14 (Pre-refunded to 11/01/04)
500 City of Fresno, California, Health Facility Revenue Refunding Bonds, 12/03 at 102 AAA 520,205
Series 1993A (Holy Cross Health System Corporation), 5.625%, 12/01/18
1,335 City of Torrance, California, Hospital Revenue Bonds (Little 7/02 at 102 A*** 1,408,692
Company of Mary Hospital Project), Series 1992, 6.875%, 7/01/15
(Pre-refunded to 7/01/02)
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.9%
2,500 City of Colorado Springs, Colorado, Utilities System Refunding Revenue 11/02 at 100 AA 2,578,875
Bonds, Series 1992A, 6.125%, 11/15/20
1,500 City and County of Denver, Colorado, Airport System Revenue Bonds, No Opt. Call A 1,857,390
Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax)
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992B:
815 7.250%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 874,715
3,185 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 A 3,381,546
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992C:
470 6.750%, 11/15/13 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 501,946
3,530 6.750%, 11/15/13 (Alternative Minimum Tax) 11/02 at 102 A 3,728,457
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.1%
250 State of Connecticut Health and Educational Facilities Authority, Revenue 7/02 at 102 AAA 262,038
Bonds (Bridgeport Hospital Issue), Series A, 6.625%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 3.5%
2,000 District of Columbia, Hospital Revenue Refunding Bonds (Washington 8/02 at 102 A3*** 2,123,260
Hospital Center Medlantic Issue), Series 1992A, 7.125%, 8/15/19
(Pre-refunded to 8/15/02)
District of Columbia (Washington D.C.), General Obligation Bonds,
Series 1993E:
445 6.000%, 6/01/13 (Pre-refunded to 6/01/03) 6/03 at 102 AAA 479,950
1,305 6.000%, 6/01/13 6/03 at 102 AAA 1,401,714
2,495 6.000%, 6/01/13 6/03 at 102 AAA 2,662,240
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.7%
3,125 City of Tampa, Florida, Revenue Bonds (The Florida Aquarium Project), 5/02 at 102 N/R*** 3,283,281
Series 1992, 7.550%, 5/01/12 (Pre-refunded to 5/01/02)
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.4%
Fulco Hospital Authority, Georgia, Refunding Revenue
Anticipation Certificates C(Georgia Baptist Health Care System
Project), Series 1992B:
2,250 6.250%, 9/01/13 (Pre-refunded to 9/01/02) 9/02 at 102 Baa1*** 2,375,640
2,000 6.375%, 9/01/22 (Pre-refunded to 9/01/02) 9/02 at 102 Baa1*** 2,113,960
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 16.2%
3,000 Village of Bryant, Illinois, Pollution Control Revenue Refunding 2/02 at 102 A2 3,071,670
Bonds (Central Illinois Light Company Project), Series 1992,
6.500%, 2/01/18
2,475 Chicago Metropolitan Housing Development Corporation (Illinois), Housing 7/02 at 102 AA 2,551,007
Development Revenue Refunding Bonds (FHA-Insured Mortgage Loans -
Section 8 Assisted Projects), Series 1992A,
6.850%, 7/01/22
2,550 City of Chicago, Illinois, Mortgage Revenue Bonds, Series 1992 (FHA-Insured 6/02 at 102 AAA 2,620,176
Mortgage Loan - Lakeview Towers Project), 6.600%, 12/01/20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 700 City of Chicago, Illinois, O'Hare International Airport Special No Opt. Call B2 $ 584,297
Facility Revenue Refunding Bonds (United Air Lines, Inc. Project),
Series 2001C, 6.300%, 5/01/16
1,700 City of Chicago, Illinois, O'Hare International Airport General 1/03 at 102 AAA 1,726,095
Airport Second Lien Revenue Refunding Bonds, Series 1993A,
5.600%, 1/01/18 (Alternative Minimum Tax)
1,930 Illinois Development Finance Authority, Revenue Bonds (Midwestern 5/11 at 101 BBB+ 1,974,544
University), Series 2001B, 5.750%, 5/15/16
1,500 Illinois Health Facilities Authority, Revenue Bonds, Series 1992C No Opt. Call N/R*** 1,710,735
(Evangelical Hospitals Corporation), 6.250%, 4/15/22
4,000 Illinois Health Facilities Authority, Revenue Bonds, 9/06 at 100 AAA 4,605,760
Series 1992B (Franciscan Sisters Health Care Corporation Project),
6.625%, 9/01/13 (Pre-refunded to 9/01/06)
1,000 Illinois Health Facilities Authority, Revenue Bonds, 10/02 at 102 Baa2*** 1,061,660
Series 1992 (Mercy Center for Health Care Services),
6.650%, 10/01/22 (Pre-refunded to 10/01/02)
620 Illinois Housing Development Authority, Homeowner Mortgage Revenue Bonds, 2/10 at 100 AA 652,891
Series 2000-D3, 5.700%, 8/01/17
7,750 The Illinois State Toll Highway Authority, Toll Highway Priority 1/03 at 102 AAA 8,286,223
Revenue Bonds, 1992 Series A, 6.375%, 1/01/15 (Pre-refunded to 1/01/03)
1,360 Board of Regents of Sangamon State University (Illinois), 10/02 at 102 AAA 1,443,422
Auxiliary Facilities System Revenue Bonds, Series 1992,
6.375%, 10/01/17 (Pre-refunded to 10/01/02)
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 7.3%
1,205 Allen County, Indiana, Refunding Certificates of Participation, 5/02 at 101 Aa3 1,242,897
Series 1991, 6.500%, 11/01/17
3,500 Indiana Health Facilities Financing Authority, Hospital Revenue Bonds, 9/11 at 100 A+ 3,430,945
Series 2001 (The Methodist Hospital, Inc.), 5.375%, 9/15/22
4,000 Indiana State Office Building Commission, Correctional Facilities Program 12/01 at 102 Aa2*** 4,109,120
Revenue Bonds, Series 1991, 6.375%, 7/01/16 (Pre-refunded to 12/01/01)
2,000 School Building Corporation of Warren Township (Marion County, Indiana), 7/02 at 102 A+*** 2,100,360
First Mortgage Bonds, Series 1992A, 6.000%, 7/15/12 (Pre-refunded to
7/15/02)
2,725 Warrick County, Indiana, Adjustable Rate Environmental Improvement Revenue 5/03 at 102 Aa2 2,798,575
Bonds, 1993 Series B (Southern Indiana Gas and Electric Company Project),
6.000%, 5/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 2.5%
Trimble County, Kentucky, Pollution Control Revenue Bonds
(Louisville Gas 1and Electric Company Project), 990 Series B:
500 6.550%, 11/01/20 (Alternative Minimum Tax) (Pre-refunded to 9/16/02) 9/02 at 102 Aaa 530,550
4,080 6.550%, 11/01/20 (Alternative Minimum Tax) 9/02 at 102 A1 4,188,773
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.2%
4,000 Louisiana Public Facilities Authority, Revenue Bonds, Series 1992 (Baton 2/03 at 101 AA 4,206,440
Rouge Water Works Company Project), 6.400%, 2/01/10 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.0%
1,270 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 11/02 at 102 Aaa 1,354,290
MetroWest Health, Inc. Issue, Series C, 6.500%, 11/15/18 (Pre-refunded to
11/15/02)
500 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/11 at 101 AA- 537,935
Partners HealthCare System Issue, Series C, 6.000%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 6.8%
4,000 Michigan State Housing Development Authority, Single Family Mortgage 6/06 at 102 AA+ 4,218,640
Revenue Bonds, 1996 Series C, 5.950%, 12/01/17
8,240 Michigan State Housing Development Authority, Limited Obligation Revenue 9/02 at 103 AAA 8,580,065
Bonds (Greenwood Villa Project), Series 1992, 6.625%, 9/15/17
Nuveen Select Tax-Free Income Portfolio 3 (NXR) (continued)
Portfolio of INVESTMENTS September 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 1.6%
Clark County, Nevada, Las Vegas-McCarran International Airport,
Passenger Facility Charge Revenue Bonds, Series 1992B:
$ 1,955 6.500%, 7/01/12 (Alternative Minimum Tax) 7/02 at 102 A $ 2,014,100
980 6.250%, 7/01/22 (Alternative Minimum Tax) (Pre-refunded to 7/01/02) 7/02 at 102 Aaa 1,028,196
20 6.250%, 7/01/22 (Alternative Minimum Tax) 7/02 at 102 A 20,400
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.2%
2,200 New Hampshire Housing Finance Authority, Single Family Mortgage 5/11 at 100 Aa2 2,246,134
Acquisition Bonds, Series 2001A, 5.600%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 11.0%
2,335 Long Island Power Authority, New York, Electric System General Revenue 9/11 at 100 A- 2,368,974
Bonds, Series 2001A, 5.375%, 9/01/21 (Alternative Minimum Tax)
1,750 City of New York, New York, General Obligation Bonds, Fiscal 1992 8/02 at 101 1/2 Aaa 1,848,945
Series C, 7.000%, 8/01/17 (Pre-refunded to 8/01/02)
City of New York, New York, General Obligation Bonds, Fiscal
1992 Series D:
1,480 7.500%, 2/01/18 (Pre-refunded to 2/01/02) 2/02 at 101 1/2 Aaa 1,529,388
20 7.500%, 2/01/18 2/02 at 101 1/2 A 20,627
City of New York, New York, General Obligation Bonds, Fiscal
1992 Series H:
1,990 7.100%, 2/01/11 (Pre-refunded to 2/01/02) 2/02 at 101 1/2 Aaa 2,053,939
10 7.100%, 2/01/11 2/02 at 101 1/2 A 10,320
City of New York, New York, General Obligation Bonds, Fiscal
1992 Series B:
205 7.000%, 2/01/18 (Pre-refunded to 2/01/02) 2/02 at 101 1/2 Aaa 211,523
855 7.000%, 2/01/18 2/02 at 101 1/2 A 880,368
New York City Municipal Water Finance Authority, New York, Water
and Sewer System Revenue Bonds, Fiscal 1993 Series B:
4,000 6.000%, 6/15/17 6/02 at 101 1/2 AA 4,138,960
2,785 6.375%, 6/15/22 (Pre-refunded to 6/15/02) 6/02 at 101 AAA 2,898,990
2,130 Dormitory Authority of the State of New York, City University System No Opt. Call A3 2,524,327
Consolidated Second General Resolution Revenue Bonds, Series 1990C,
7.500%, 7/01/10
2,000 New York State Medical Care Facilities Finance Agency, Hospital 8/02 at 102 AAA 2,205,660
and Nursing Home FHA-Insured Mortgage Revenue Bonds, 1992 Series C,
6.250%, 8/15/12
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 6.8%
2,500 Cambria County Hospital Development Authority (Pennsylvania), Hospital 7/02 at 102 AAA 2,628,800
Revenue Refunding and Improvement Bonds, Series B of 1992 (Conemaugh
Valley Memorial Hospital Project), 6.375%, 7/01/18 (Pre-refunded to 7/01/02)
2,435 Dauphin County Industrial Development Authority (Pennsylvania), Water No Opt. Call A- 2,863,097
Development Refunding Revenue Bonds, Series 1992B (Dauphin Consolidates
Water Supply Company), 6.700%, 6/01/17
4,000 Pennsylvania Housing Finance Agency, Rental Housing Refunding Bonds, Issue 7/02 at 102 AAA 4,117,440
of 1992 (FNMA Insured Mortgage Loans), 6.500%, 7/01/23
2,000 Pennsylvania Higher Educational Facilities Authority, Revenue Bonds (Drexel 5/03 at 102 A- 2,084,540
University), Series 1993, 6.375%, 5/01/17
1,000 Philadelphia Authority for Industrial Development, Pennsylvania, Airport 7/11 at 101 AAA 1,039,860
Revenue Bonds, Series 2001A (Philadelphia Airport System Project), 5.500%,
7/01/17 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.1%
4,000 South Carolina Public Service Authority, Revenue Bonds, 1992 Refunding 7/02 at 102 Aa2 4,188,720
Series A, 6.375%, 7/01/11
City of Spartanburg, South Carolina, Water System Improvement Refunding
Revenue Bonds, Series 1992:
1,290 6.250%, 6/01/17 (Pre-refunded to 6/01/02) 6/02 at 101 AAA 1,338,685
310 6.250%, 6/01/17 6/02 at 101 AA- 315,627
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 2.2%
4,000 South Dakota Health and Educational Facilities Authority, Revenue Bonds, 9/02 at 102 AAA 4,225,440
Series 1992 (Rapid City Regional Hospital Issue), 6.150%, 9/01/18
(Pre-refunded to 9/01/02)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 2.4%
$ 4,420 Memphis-Shelby County Airport Authority (Tennessee), Special Facilities 9/02 at 102 BBB $ 4,532,401
Revenue Refunding Bonds, Series 1992 (Federal Express Corporation),
6.750%, 9/01/12
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.3%
3,755 Grand Prairie Industrial Development Authority, Texas, 12/02 at 102 A 3,938,131
Industrial Development Revenue Refunding Bonds, Series 1992
(Baxter International, Inc. Project), 6.550%, 12/01/12
2,500 Harris County Health Facilities Development Corporation, Texas, Hospital 10/04 at 101 AAA 2,784,125
Revenue Bonds (Hermann Hospital), Series 1994, 6.375%, 10/01/17
(Pre-refunded to 10/01/04)
5,000 North Central Texas Health Facilities Development Corporation, Hospital 5/06 at 102 AA- 5,079,350
Revenue Refunding Bonds (Baylor Health Care System Project),
Series 1995, 5.250%, 5/15/16
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.2%
4,000 Virginia Housing Development Authority, Commonwealth Mortgage Bonds, 1/02 at 102 AA+ 4,094,440
1992 Series A, 7.100%, 1/01/22
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 4.4%
Port of Seattle, Washington, Revenue Bonds, Series 1992B:
290 6.000%, 11/01/17 (Alternative Minimum Tax) (Pre-refunded to 11/01/02) 11/02 at 100 Aa2*** 301,319
3,710 6.000%, 11/01/17 (Alternative Minimum Tax) 11/02 at 100 Aa2 3,802,194
4,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding 7/02 at 102 AAA 4,211,400
Revenue Bonds, Series 1992A, 6.500%, 7/01/15 (Pre-refunded to 7/01/02)
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 4.3%
2,500 Berkeley County Building Commission (West Virginia), Hospital 11/02 at 102 BBB+ 2,561,475
Revenue Bonds (City Hospital Project), Series 1992, 6.500%, 11/01/09
3,000 Mason County, West Virginia, Pollution Control Revenue Bonds (Appalachian 10/02 at 102 BBB+ 3,092,610
Power Company Project), Series 1992J, 6.600%, 10/01/22
West Virginia School Building Authority, Capital Improvement Revenue Bonds,
Series 1992-A:
1,855 6.500%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 102 A+*** 1,952,313
395 6.500%, 7/01/12 7/02 at 102 A+ 413,341
------------------------------------------------------------------------------------------------------------------------------------
$ 176,985 Total Investments (cost $175,984,893) - 99.0% 186,150,298
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.0% 1,972,684
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 188,122,982
====================================================================================================================
* 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.
Nuveen California Select Tax-Free Income Portfolio (NXC)
(Formerly the Nuveen Insured California Select Tax-Free Income Portfolio)
Portfolio of
INVESTMENTS September 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 1.5%
$ 1,410 California Educational Facilities Authority, Refunding Revenue Bonds, 10/01 at 100 AAA $ 1,413,694
Series 1992 (Loyola Marymount University), 6.000%, 10/01/14
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 10.7%
2,500 California Health Facilities Financing Authority, Insured Hospital Revenue 10/02 at 102 AAA 2,650,475
Bonds (Scripps Memorial Hospitals), Series 1992A, 6.400%, 10/01/12
1,000 California Health Facilities Financing Authority, Insured Hospital Revenue 3/02 at 101 AAA 1,023,430
Bonds (Adventist Health System/West), 1991 Series B, 6.500%, 3/01/11
4,000 California Health Facilities Financing Authority, Insured Hospital Revenue 8/02 at 102 AAA 4,205,760
Bonds (San Diego Hospital Association), Series 1992B, 6.125%, 8/01/11
1,880 California Statewide Communities Development Authority, Revenue Bond 6/07 at 101 AAA 1,979,508
(Los Angeles Orthopaedic Hospital Foundation and Orthopaedic Hospital),
Series 2000, 5.500%, 6/01/17
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.2%
Golden West Schools Financing Authority (California), 1999
Revenue Bonds (School District General Obligation Refunding
Program), Series A:
4,650 0.000%, 8/01/16 No Opt. Call AAA 2,284,964
1,750 0.000%, 2/01/17 No Opt. Call AAA 827,120
2,375 8/01/17 No Opt. Call AAA 1,095,445
2,345 0.000%, 2/01/18 No Opt. Call AAA 1,038,812
Mountain View-Los Altos Union High School District (County of
Santa Clara, California), 1995 General Obligation Capital
Appreciation Bonds, Series C:
1,015 0.000%, 5/01/17 No Opt. Call AAA 473,904
1,080 0.000%, 5/01/18 No Opt. Call AAA 472,511
4,000 City of Oakland, Alameda County, California, General Obligation Bonds, 6/02 at 102 AAA 4,167,280
Series 1992, 6.000%, 6/15/17
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 15.2%
3,500 State Public Works Board of the State of California, Lease Revenue Bonds, No Opt. Call AAA 4,269,370
Department of Corrections (Calipatria State Prison in Imperial County), 1991
Series A, 6.500%, 9/01/17
1,665 County of Los Angeles, California, Certificates of Participation (Edmund D. 4/02 at 102 AAA 1,728,686
Edelman Children's Court and Petersen Museum Projects), 6.000%, 4/01/12
1,200 Los Angeles County Metropolitan Transportation Authority, California, 7/03 at 102 AAA 1,244,364
Proposition A, Sales Tax Revenue Refunding Bonds, Series 1993-A, 5.625%,
7/01/18
4,000 San Bernardino County, California, Certificates of Participation 11/02 at 102 AAA 4,211,800
(1992 West Valley Detention Center Refinancing Project), 6.000%, 11/01/18
2,445 Walnut Public Financing Authority (Los Angeles County, California), 9/02 at 102 AAA 2,576,199
1992 Tax Allocation Revenue Bonds (Walnut Improvement Project),
6.500%, 9/01/22
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 17.3%
5,000 Harbor Department of the City of Los Angeles, California, Revenue 8/11 at 100 AAA 5,241,650
Refunding Bonds, Series 2001B, 5.500%, 8/01/17
3,675 Palm Springs Financing Authority, California, Palm Springs 1/02 at 102 AAA 3,777,459
Regional Airport Revenue Bonds, Series 1992, 6.000%, 1/01/12
(Alternative Minimum Tax)
3,750 Port of Oakland, California, Revenue Bonds, Series 1992-E, 11/02 at 102 AAA 3,971,438
6.500%, 11/01/16
2,095 Airports Commission of the City and County of San Francisco, California, 5/02 at 102 AAA 2,182,445
San Francisco International (Alternative Minimum Tax) Airport
Second Series Revenue Bonds, Issue 1 Refunding, 6.300%, 5/01/11
820 Airports Commission of the City and County of San Francisco, California, 5/03 at 102 AAA 871,652
San Francisco International Airport Second Series Revenue Bonds, Issue 4
Refunding, 6.200%, 5/01/20 (Alternative Minimum Tax)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 30.9%
$ 4,000 The Community Redevelopment Agency of the City of Los Angeles, California, 7/02 at 102 AAA $ 4,201,000
Tax Allocation Bonds (Hollywood Redevelopment Project), Series B, 6.100%,
7/01/22 (Pre-refunded to 7/01/02)
4,000 The City of Los Angeles, California, Wastewater System Revenue Bonds, 6/02 at 102 AAA 4,191,800
Series 1992-B, 6.250%, 6/01/12 (Pre-refunded to 6/01/02)
765 County of Los Angeles, California, Certificates of Participation (Edmund D. 4/02 at 102 AAA 795,485
Edelman Children's Court and Petersen Museum Projects), 6.000%, 4/01/12
(Pre-refunded to 4/01/02)
1,500 Modesto Irrigation District Financing Authority, California, Domestic Water 9/02 at 102 AAA 1,585,065
Project Revenue Bonds, Series 1992A, 6.125%, 9/01/19 (Pre-refunded to
9/01/02)
3,310 Rio Linda Union School District (California), General Obligation Bonds, 8/02 at 102 AAA 3,494,830
Series 1992-A, 6.375%, 8/01/17 (Pre-refunded to 8/01/02)
475 Rio Linda Union School District (California), General Obligation Bonds, 8/02 at 102 AAA 501,030
Series 1992A, 6.250%, 8/01/15 (Pre-refunded to 8/01/02)
3,500 Sacramento Municipal Utility District (California), Electric Revenue Bonds, 8/02 at 102 AAA 3,700,620
1992 Series B, 6.375%, 8/15/22 (Pre-refunded to 8/15/02)
4,000 County of San Diego (California), Certificates of Participation (1994 Inmat 8/04 at 102 AAA 4,537,320
Reception Center and Cooling Plant Financing), 6.750%, 8/01/14
(Pre-refunded to 8/01/04)
1,405 Airports Commission of the City and County of San Francisco, 5/02 at 102 AAA 1,467,972
California, San Francisco International Airport Second Series
Revenue Bonds, Issue 1 Refunding, 6.300%, 5/01/11 (Pre-refunded to 5/01/02)
1,330 Airports Commission of the City and County of San Francisco, 5/03 at 102 AAA 1,436,334
California, San Francisco International Airport Second Series
Revenue Bonds, Issue 4 Refunding, 6.200%, 5/01/20
(Alternative Minimum Tax) (Pre-refunded to 5/01/03)
1,000 Tulare County, California, Certificates of Participation 11/02 at 102 AAA 1,063,260
(1992 Financing Project), Series A, 6.125%, 11/15/12
(Pre-refunded to 11/15/02)
1,555 Walnut Public Financing Authority (Los Angeles County, California), 9/02 at 102 AAA 1,648,502
1992 Tax Allocation Revenue Bonds (Walnut Improvement Project),
6.500%, 9/01/22 Pre-refunded to 9/01/02)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.7%
3,450 M-S-R Public Power Agency (California), San Juan Project Revenue Bonds, 1/02 at 100 AAA 3,477,014
Series 1991E, 6.000%, 7/01/22
3,000 Northern California Power Agency, Hydroelectric Project Number One, 7/02 at 102 AAA 3,141,870
Revenue Bonds, 1992 Refunding Series A, 6.250%, 7/01/12
1,225 Turlock Irrigation District (California), Revenue Refunding Bonds, No Opt. Call AAA 1,455,531
Series 1992A, 6.250%, 1/01/12
------------------------------------------------------------------------------------------------------------------------------------
$ 90,670 Total Investments (cost $83,287,695) - 95.5% 88,405,599
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.5% 4,164,253
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 92,569,852
====================================================================================================================
* 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.
See accompanying notes to financial statements.
Nuveen New York Select Tax-Free Income Portfolio (NXN)
(Formerly the Nuveen Insured New York Select Tax-Free Income Portfolio)
Portfolio of
INVESTMENTS September 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 14.9%
$ 1,000 New York City Industrial Development Agency, New York, Civic Facility 11/04 at 102 AAA $ 1,118,850
Revenue Bonds (USTA National Tennis Center, Inc. Project), 6.375%,
11/15/14
570 Dormitory Authority of the State of New York, City University System No Opt. Call AAA 685,904
Consolidated Second General Resolution Revenue Bonds, Series 1990C,
7.500%, 7/01/10
1,370 Dormitory Authority of the State of New York, Siena College 7/02 at 102 AAA 1,438,253
Insured Revenue Bonds, Series 1992, 6.000%, 7/01/11
1,100 Dormitory Authority of the State of New York, Mount Sinai 1/02 at 102 AAA 1,125,751
School of Medicine Insured Revenue Bonds, Series 1991, 6.750%, 7/01/15
2,500 Dormitory Authority of the State of New York, Marist College 7/02 at 102 AAA 2,617,600
Insured Revenue Bonds, Series 1992, 6.000%, 7/01/12
1,425 Dormitory Authority of the State of New York, Rochester Institute 7/07 at 101 AAA 1,446,190
of Technology Insured Revenue Bonds, Series 1997, 5.250%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 10.1%
1,680 Dormitory Authority of the State of New York, Withrop University Hospital 7/11 at 101 AAA 1,740,682
Association Revenue Bonds (Winthrop South Nassau University Health System
Obligated Group), Series 2001A, 5.250%, 7/01/17
1,195 Dormitory Authority of the State of New York, South Nassau Communities 7/11 at 101 AAA 1,238,163
Hospital Revenue Bonds (Winthrop South Nassau University Health System
Obligation Group), Series 2001B, 5.250%, 7/01/17
2,500 New York State Medical Care Facilities Finance Agency, Hospital and Nursing 8/02 at 102 AAA 2,757,075
Home FHA-Insured Mortgage Revenue Bonds, 1992 Series C, 6.250%, 8/15/12
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.7%
1,340 New Hartford Housing Development Corporation, New York, Mortgage 7/02 at 100 AAA 1,359,443
Revenue Refunding Bonds, Series 1992-A (Village Point Project -
FHA-Insured Mortgage Loan - Section 8 Assisted Project), 7.375%, 1/01/24
1,245 New York State Housing Finance Agency, FHA-Insured Multifamily Housing 8/02 at 102 AAA 1,286,346
Mortgage Revenue Bonds, Series 1992C, 6.450%, 8/15/14
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.4%
2,500 State of New York Mortgage Agency, Mortgage Revenue Bonds, Thirty First 4/11 at 100 Aaa 2,508,875
Series A, 5.300%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.5%
2,000 Dormitory Authority of the State of New York, Norwegian Christian Home 8/11 at 101 AAA 1,990,280
and Health Center, FHA-Insured Mortgage Nursing Home Revenue Bonds,
Series 2001, 5.200%, 8/01/36 (WI, settling 10/18/01)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 3.1%
Town of Clarkstown, Rickland County, New York, Various Purposes:
Serial Bonds of 1992
505 5.600%, 6/15/10 No Opt. Call AAA 564,590
525 5.600%, 6/15/11 No Opt. Call AAA 591,806
525 5.600%, 6/15/12 No Opt. Call AAA 591,964
10 City of New York, New York, General Obligation Bonds, 8/02 at 101 1/2 AAA 10,469
Fiscal 1992 Series C,6.250%, 8/01/11 Serial Bonds of 1992
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 4.2%
1,000 Nassau County Interim Finance Authority, New York, Sales Tax Secured 11/06 at 101 AAA 1,004,640
Revenue Bonds, Series 2001-A2, 5.125%, 11/15/21
20 New York State Medical Care Facilities Finance Agency, Mental Health 8/02 at 102 AAA 20,971
Services Facilities Improvement Revenue Bonds, 1992 Series D, 6.100%,
8/15/13
140 New York State Medical Care Facilities Finance Agency, Mental Health 2/02 at 102 AAA 144,494
Services Facilities Improvement Revenue Bonds, 1992 Series B, 6.250%,
8/15/18
200 New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, 4/05 at 102 AAA 205,204
Series 1995B, 5.125%, 4/01/15
1,000 West Islip Union Free School District, New York, General Obligation Bonds 10/10 at 100 Aaa 1,014,850
(Unlimited Tax), Series 2001, 5.000%, 10/01/17 (WI, settling 10/10/01)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.7%
$ 2,500 The Port Authority of New York and New Jersey, Consolidated Bonds, 1/05 at 101 AAA $ 2,646,600
Ninety-Seventh Series, 6.500%, 7/15/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 36.8%
3,500 Metropolitan Transportation Authority, New York, Commuter Facilities 7/02 at 102 AAA 3,681,160
Revenue Bonds, Series 1992B, 6.250%, 7/01/17 (Pre-refunded to 7/01/02)
2,250 Metropolitan Transportation Authority, New York, Transit Facilities Revenue 7/02 at 102 AAA 2,368,575
Bonds, Series J, 6.375%, 7/01/10 (Pre-refunded to 7/01/02)
245 City of New York, New York, General Obligation Bonds, 8/02 at 101 1/2 AAA 257,328
Fiscal 1992 Series C, 6.250%, 8/01/11 (Pre-refunded to 8/01/02)
2,000 City of New York, New York, General Obligation Bonds, 8/04 at 101 AAA 2,264,120
Fiscal 1995 Series B1, 6.950%, 8/15/12 (Pre-refunded to 8/15/04)
1,000 New York City Municipal Water Finance Authority, New York, Water and 6/02 at 101 1/2 AAA 1,044,630
Sewer System Revenue Bonds, Fiscal 1992 Series C, 6.200%, 6/15/21
(Pre-refunded to 6/15/02)
1,505 Dormitory Authority of the State of New York, Judicial No Opt. Call AAA 1,869,406
Facilities Lease Revenue Bonds (Suffolk County Issue), Series 1986,
7.375%, 7/01/16
1,965 New York State Medical Care Facilities Finance Agency, 2/02 at 102 AAA 2,035,465
Mental Health Services Facilities Improvement Revenue Bonds,
1992 Series B, 6.250%, 8/15/18 (Pre-refunded to 2/15/02)
2,500 New York State Medical Care Facilities Finance Agency, New York Hospital 2/05 at 102 AAA 2,863,125
FHA-Insured Mortgage Revenue Bonds, Series 1994A, 6.750%, 8/15/14
(Pre-refunded to 2/15/05)
230 New York State Medical Care Facilities Finance Agency, Mental Health 8/02 at 102 AAA 242,719
Services Facilities Improvement Revenue Bonds, 1992 Series D, 6.100%,
8/15/13 (Pre-refunded to 8/15/02)
1,500 New York State Thruway Authority, General Revenue Bonds, Series A, 5.500%, 1/02 at 100 AAA 1,513,335
1/01/23 (Pre-refunded to 1/01/02)
2,000 New York State Thruway Authority, Local Highway and Bridge Service 4/02 at 102 AAA 2,060,320
Contract Bonds, Series 1992, 6.000%, 4/01/10 (Pre-refunded to 4/01/02)
485 Suffolk County Water Authority, New York, Waterworks Revenue Bonds, No Opt. Call AAA 580,671
Series 1986-V, 6.750%, 6/01/12
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.5%
1,945 Power Authority of the State of New York, General Purpose Bonds, 1/02 at 102 AAA 2,004,770
Series AA, 6.250%, 1/01/23
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.9%
New York City Municipal Water Finance Authority, New York, Water
and Sewer System Revenue Bonds, Fiscal 1993 Series A:
3,500 5.750%, 6/15/18 6/02 at 101 1/2 AAA 3,607,905
1,400 5.750%, 6/15/18 6/02 at 101 1/2 AAA 1,443,163
------------------------------------------------------------------------------------------------------------------------------------
$ 52,875 Total Investments (cost $52,734,363) - 98.8% 55,945,692
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 5.3%
$ 3,000 New York City Transitional Finance Authority, New York, Future Tax Secured A-1+ 3,000,000
Bonds, Adjustable Rate Demand Bonds, 1998 Series C, 2.650%, 5/01/28+
============ --------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (4.1)% (2,338,251)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 56,607,441
====================================================================================================================
* 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.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has variable
rate and demand features which qualify it as a short-term
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, 2001 (Unaudited)
SELECT SELECT SELECT CALIFORNIA NEW YORK
TAX-FREE TAX-FREE 2 TAX-FREE 3 SELECT TAX-FREE SELECT TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal securities,
at market value $242,155,117 $254,752,351 $186,150,298 $88,405,599 $55,945,692
Temporary investments in short-term municipal
securities, at amortized cost, which approximates
market value -- -- -- -- 3,000,000
Cash 10,744 -- 4,350 129,365 217,895
Receivables:
Interest 5,027,267 4,598,485 2,975,738 1,367,922 751,353
Investments sold 85,000 3,861,101 -- 3,118,600 --
Other assets 50,947 53,817 42,268 25,163 19,478
------------------------------------------------------------------------------------------------------------------------------------
Total assets 247,329,075 263,265,754 189,172,654 93,046,649 59,934,418
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 452,962 -- -- --
Payable for investments purchased -- -- -- -- 3,016,573
Accrued expenses:
Surveillance and administration fees 49,462 63,063 45,816 22,870 13,990
Other 119,332 126,913 141,818 54,133 48,190
Dividends payable 1,161,041 1,223,298 862,038 399,794 248,224
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,329,835 1,866,236 1,049,672 476,797 3,326,977
------------------------------------------------------------------------------------------------------------------------------------
Net assets $245,999,240 $261,399,518 $188,122,982 $92,569,852 $56,607,441
====================================================================================================================================
Shares outstanding 16,378,096 17,607,068 12,964,124 6,257,070 3,907,069
====================================================================================================================================
Net asset value per share outstanding
(net assets divided by shares outstanding) $ 15.02 $ 14.85 $ 14.51 $ 14.79 $ 14.49
====================================================================================================================================
See accompanying notes to financial statements.
Statement of
OPERATIONS Six Months Ended September 30, 2001 (Unaudited)
ELECT SELECT SELECT CALIFORNIA NEW YORK
TAX-FREE TAX-FREE 2 TAX-FREE 3 SELECT TAX-FREE SELECT TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $7,714,993 $ 8,175,984 $5,655,717 $2,644,181 $1,551,599
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Surveillance and administration fees 300,534 383,831 278,647 138,487 85,051
Shareholders' servicing agent fees and expenses 18,990 19,856 17,811 5,480 3,954
Custodian's fees and expenses 43,225 43,426 32,756 17,628 14,011
Trustees' fees and expenses 18,997 20,218 14,475 7,062 4,337
Professional fees 8,744 7,490 27,796 8,897 9,095
Shareholders' reports - printing and
mailing expenses 34,093 41,409 28,122 7,225 6,451
Stock exchange listing fees 12,093 12,096 12,099 8,063 7,944
Investor relations expense 26,597 27,931 20,595 8,070 5,841
Other expenses 6,254 6,616 5,029 3,160 2,538
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 469,527 562,873 437,330 204,072 139,222
Custodian fee credit (15,831) (15,332) (11,894) (3,899) (3,290)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 453,696 547,541 425,436 200,173 135,932
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 7,261,297 7,628,443 5,230,281 2,444,008 1,415,667
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain from investment transactions 427,848 372,526 12,741 166,949 74,941
Change in net unrealized appreciation
(depreciation) of investments (1,024,480) (1,270,968) (291,202) (155,651) (97,382)
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (596,632) (898,442) (278,461) 11,298 (22,441)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $6,664,665 $ 6,730,001 $4,951,820 $2,455,306 $1,393,226
====================================================================================================================================
See accompanying notes to financial statements.
Statement of
CHANGES IN NET ASSETS (Unaudited)
SELECT TAX-FREE (NXP) SELECT TAX-FREE 2 (NXQ) SELECT TAX-FREE 3 (NXR)
--------------------------------- ---------------------------------- ---------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
9/30/01 3/31/01 9/30/01 3/31/01 9/30/01 3/31/01
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 7,261,297 $ 14,826,210 $ 7,628,443 $ 15,331,134 $ 5,230,281 $ 10,559,903
Net realized gain from
investment transactions 427,848 81,990 372,526 9,407 12,741 249,350
Change in net unrealized
appreciation (depreciation)
of investments (1,024,480) 2,461,003 (1,270,968) 2,434,860 (291,202) 2,422,827
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations 6,664,665 17,369,203 6,730,001 17,775,401 4,951,820 13,232,080
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net
investment income (7,140,850) (14,707,536) (7,474,202) (15,291,745) (5,172,686) (10,559,280)
From accumulated net realized
gains from investment
transactions -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to
shareholders (7,140,850) (14,707,536) (7,474,202) (15,291,745) (5,172,686) (10,559,280)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets (476,185) 2,661,667 (744,201) 2,483,656 (220,866) 2,672,800
Net assets at the beginning
of period 246,475,425 243,813,758 262,143,719 259,660,063 188,343,848 185,671,048
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $245,999,240 $246,475,425 $261,399,518 $262,143,719 $188,122,982 $188,343,848
====================================================================================================================================
Balance of undistributed net
investment income at the
end of period $ 1,273,866 $ 351,649 $ 579,783 $ 265,318 $ 265,318 $ 107,659
====================================================================================================================================
See accompanying notes to financial statements.
CALIFORNIA SELECT TAX-FREE (NXC) NEW YORK SELECT TAX-FREE (NXN)
---------------------------------- ---------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
9/30/01 3/31/01 9/30/01 3/31/01
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,444,008 $ 4,941,478 $ 1,415,667 $ 3,028,460
Net realized gain from
investment transactions 166,949 79,582 74,941 8,584
Change in net unrealized appreciation
(depreciation) of investments (155,651) 1,352,959 (97,382) 758,168
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations 2,455,306 6,374,019 1,393,226 3,795,212
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net
investment income (2,402,715) (4,943,085) (1,465,270) (3,039,700)
From accumulated net realized gains
from investment transactions -- (79,465) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (2,402,715) (5,022,550) (1,465,270) (3,039,700)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 52,591 1,351,469 (72,044) 755,512
Net assets at the beginning of period 92,517,261 91,165,792 56,679,485 55,923,973
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $92,569,852 $92,517,261 $56,607,441 $56,679,485
====================================================================================================================================
Balance of undistributed net
investment income at the
end of period $ 100,169 $ 21,819 $ 4,065 $ 53,668
====================================================================================================================================
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 California Select Tax-Free Income Portfolio (NXC)
(formerly the Nuveen Insured California Select Tax-Free Income Portfolio) and
Nuveen New York Select Tax-Free Income Portfolio (NXN) (formerly the Nuveen
Insured New York Select Tax-Free Income Portfolio).
Each Trust seeks to provide stable dividends consistent with the preservation of
capital, exempt from regular federal and designated state income taxes, where
applicable, by investing primarily in a diversified portfolio of municipal
obligations. 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 following is a summary of significant accounting policies followed by the
Trusts in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Trusts' 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. If it is determined that market prices for a security are
unavailable or inappropriate, the Board of Trustees of the Trusts may establish
a fair value for the security. Temporary investments in securities that have
variable rate and demand features qualifying them as short-term securities are
valued at amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade-date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. Any securities so purchased are subject to
market fluctuation during this period. The Trusts have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At
September 30, 2001, New York Select Tax-Free (NXN)had outstanding when-issued
purchase commitments of $3,016,573. There were no such outstanding purchase
commitments in any of the other Trusts.
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
for financial reporting 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 net investment
income to its shareholders. Therefore, no federal income tax provision is
required. Furthermore, each Trust intends to satisfy conditions which will
enable interest from municipal securities, which is exempt from regular federal
and designated state income taxes, where applicable, 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 monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of distributions are determined in accordance with federal
income tax regulations, which may differ from accounting principles generally
accepted in the United States. 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.
Notes to
FINANCIAL STATEMENTS (Unaudited) (Continued)
Derivative Financial Instruments
The Trusts are not authorized to invest in derivative financial instruments.
Custodian Fee Credit
Each Trust has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Trust's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
Change in Accounting Policy
As required, effective April 1, 2001, the Trusts have adopted the provisions of
the AICPA Audit and Accounting Guide for Investment Companies and began
accreting taxable market discount on debt securities. Prior to April 1, 2001,
the Trusts did not accrete taxable market discounts on debt securities until
they were sold. The cumulative effect of this accounting change had no impact on
the total net assets of the Trusts, but resulted in an increase in the cost of
securities and a corresponding decrease in unrealized appreciation for Select
Tax-Free (NXP), Select Tax-Free 2 (NXQ), Select Tax-Free 3 (NXR) and California
Select Tax-Free (NXC) of $801,770, $233,334, $100,064 and $37,057, respectively,
based on securities held by the Trusts on April 1, 2001.
The effect of this change for the six months ended September 30, 2001, was to
increase net investment income with a corresponding decrease in net unrealized
appreciation for Select Tax-Free (NXP), Select Tax-Free 2 (NXQ), Select Tax-Free
3 (NXR) and California Select Tax-Free (NXC) of $64,290, $19,127, $7,249 and
$2,954, respectively. The Statement of Changes in Net Assets and Financial
Highlights for the prior periods have not been restated to reflect this change
in presentation.
2. TRUST SHARES
There were no share transactions during the six months ended September 30, 2001,
nor during the fiscal year ended March 31, 2001, in any of the Trusts.
3. DISTRIBUTIONS TO SHAREHOLDERS
The Trusts declared dividend distributions from their tax-exempt net investment
income which were paid November 1, 2001, to shareholders of record on October
15, 2001, as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
----------------------------------------------------------------------------------------------------------
Dividend per share $.0710 $.0695 $.0665 $.0640 $.0600
==========================================================================================================
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities during the six months ended
September 30, 2001, were as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
----------------------------------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $34,237,754 $12,801,348 $9,117,568 $5,147,700 $9,451,393
Short-term municipal securities 10,000,000 5,000,000 3,000,000 5,000,000 8,000,000
Sales and maturities:
Long-term municipal securities 31,498,650 16,296,650 5,335,000 8,433,600 8,129,000
Short-term municipal securities 10,000,000 5,000,000 3,000,000 5,000,000 6,500,000
==========================================================================================================
At September 30, 2001, the cost of investments owned for federal income tax
purposes were as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
----------------------------------------------------------------------------------------------------------
$224,729,108 $239,832,321 $175,877,580 $83,247,684 $55,734,363
==========================================================================================================
Notes to
FINANCIAL STATEMENTS (Unaudited) (Continued)
At March 31, 2001, the Trusts' last fiscal year end, the following 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:
NEW YORK
SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE
(NXP) (NXQ) (NXR) (NXN)
----------------------------------------------------------------------------------------------------------
Expiration year:
2002 $ -- $ -- $ -- $ 432
2003 -- -- -- 1,954
2004 -- -- 136,144 321,550
2005 27,152 32,251 674,505 1,480
2006 24,357 44,578 3,603 828
2007 -- -- -- 933
2008 -- -- -- 538
----------------------------------------------------------------------------------------------------------
Total $51,509 $76,829 $814,252 $327,715
==========================================================================================================
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at September 30, 2001, were as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
appreciation $17,848,601 $15,310,082 $10,422,900 $5,157,915 $3,221,049
depreciation (422,592) (390,052) (150,182) -- (9,720)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation $17,426,009 $14,920,030 $10,272,718 $5,157,915 $3,211,329
==========================================================================================================
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 assets of each
Trust as follows:
SELECT TAX-FREE 2 (NXQ)
SELECT TAX-FREE 3 (NXR)
CALIFORNIA SELECT TAX-FREE (NXC)
AVERAGE DAILY NET ASSETS SELECT TAX-FREE (NXP) NEW YORK SELECT TAX-FREE (NXN)
----------------------------------------------------------------------------------------------------------
For the first $125 million .2500 of 1% .3000 of 1%
For the next $125 million .2375 of 1 .2875 of 1
For the next $250 million .2250 of 1 .2750 of 1
For the next $500 million .2125 of 1 .2625 of 1
For the next $1 billion .2000 of 1 .2500 of 1
For net assets over $2 billion .1875 of 1 .2375 of 1
==========================================================================================================
The fee compensates the Adviser for performing ongoing administration,
surveillance and portfolio adjustment services. The Trusts pay no compensation
directly to those 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, 2001, each Trust had an unlimited number of $.01 par value
shares of beneficial interest authorized. Net assets consisted of:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
----------------------------------------------------------------------------------------------------------
Capital paid-in $ 163,781 $ 176,071 $ 129,641 $ 62,571 $ 39,071
Paid-in surplus 227,625,305 245,680,398 178,364,129 87,122,259 53,605,750
Balance of undistributed net
investment income 1,273,866 579,783 265,318 100,169 4,065
Accumulated net realized gain (loss) from
investment transactions 376,339 295,371 (801,511) 166,949 (252,774)
Net unrealized appreciation
of investments 16,559,949 14,667,895 10,165,405 5,117,904 3,211,329
----------------------------------------------------------------------------------------------------------
Net assets $245,999,240 $261,399,518 $188,122,982 $92,569,852 $56,607,441
==========================================================================================================
Notes to
FINANCIAL STATEMENTS (Unaudited) (Continued)
8. INVESTMENT COMPOSITION
At September 30, 2001, the revenue sources by municipal purpose, expressed as a
percent of long-term investments, were as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
----------------------------------------------------------------------------------------------------------
Basic Materials 2% 3% --% --% --%
Education and Civic Organizations 2 7 4 2 15
Healthcare 12 11 10 11 10
Housing/Multifamily 4 11 10 -- 5
Housing/Single Family 9 5 6 -- 4
Long-Term Care -- -- -- -- 4
Tax Obligation/General 6 -- 2 12 5
Tax Obligation/Limited 10 6 1 16 2
Transportation 11 9 12 18 5
U.S. Guaranteed 42 44 37 32 37
Utilities -- -- 12 9 4
Water and Sewer 2 3 6 -- 9
Other -- 1 -- -- --
----------------------------------------------------------------------------------------------------------
100% 100% 100% 100% 100%
==========================================================================================================
Certain long-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, both of which
ensure the timely payment of principal and interest in the event of default (58%
for Select Tax-Free (NXP), 62% for Select Tax-Free 2 (NXQ), 46% for Select
Tax-Free 3 (NXR), 100% for California Select Tax-Free (NXC), and 100% for New
York Select Tax-Free (NXN)). Such insurance or escrow, however, does not
guarantee the market value of the municipal securities or the value of any of
the Trusts' shares.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Trust.
Financial HIGHLIGHTS (Unaudited)
Financial
HIGHLIGHTS (Unaudited)
Selected data for a share outstanding throughout each period:
INVESTMENT OPERATIONS
----------------------------------------------
NET
REALIZED/
BEGINNING NET UNREALIZED
NET ASSET INVESTMENT INVESTMENT
VALUE INCOME GAIN (LOSS) TOTAL
--------------------------------------------------------------------------------------------------------
SELECT TAX-FREE (NXP)
--------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2002(a) $15.05 $ .44 $ (.03) $ .41
2001 14.89 .91 0.15 1.06
2000 15.55 .90 (0.66) .24
1999 15.62 .90 (0.07) .83
1998 15.15 .90 0.47 1.37
1997 15.07 .90 0.10 1.00
SELECT TAX-FREE 2 (NXQ)
--------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2002(a) 14.89 .43 (.05) .38
2001 14.75 .87 .14 1.01
2000 15.41 .87 (.66) .21
1999 15.43 .87 (.02) .85
1998 14.95 .88 .49 1.37
1997 14.92 .88 .04 .92
SELECT TAX-FREE 3 (NXR)
--------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2002(a) 14.53 .40 (.02) .38
2001 14.32 .81 .21 1.02
2000 14.98 .82 (.66) .16
1999 14.96 .82 .02 .84
1998 14.35 .82 .62 1.44
1997 14.23 .82 .13 .95
CALIFORNIA SELECT TAX-FREE (NXC)
--------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2002(a) 14.79 .39 (.01) .38
2001 14.57 .79 .23 1.02
2000 15.26 .79 (.67) .12
1999 15.21 .79 .05 .84
1998 14.53 .79 .69 1.48
1997 14.42 .80 .11 .91
NEW YORK SELECT TAX-FREE (NXN)
--------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2002(a) 14.51 .36 -- .36
2001 14.31 .78 .20 .98
2000 14.92 .78 (.61) .17
1999 14.91 .78 .01 .79
1998 14.28 .78 .63 1.41
1997 14.25 .78 .03 .81
========================================================================================================
LESS DISTRIBUTIONS TOTAL RETURNS
----------------------------------- -----------------------
ENDING BASED ON
NET NET ENDING BASED ON NET
INVESTMENT CAPITAL ASSET MARKET MARKET ASSET
INCOME GAINS TOTAL VALUE VALUE VALUE** VALUE**
---------------------------------------------------------------------------------------------------------------------------------
SELECT TAX-FREE (NXP)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2002(a) $(.44) $ -- $(.44) $15.02 $14.3500 1.90% 2.73%
2001 (.90) -- (.90) 15.05 14.5000 12.63 7.32
2000 (.90) -- (.90) 14.89 13.6875 (11.09) 1.62
1999 (.90) -- (.90) 15.55 16.3750 9.02 5.43
1998 (.90) -- (.90) 15.62 15.8750 14.06 9.24
1997 (.92) -- (.92) 15.15 14.7500 4.58 6.79
SELECT TAX-FREE 2 (NXQ)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2002(a) (.42) -- (.42) 14.85 14.0500 2.24 2.62
2001 (.87) -- (.87) 14.89 14.1500 12.46 7.04
2000 (.87) -- (.87) 14.75 13.3750 (10.38) 1.43
1999 (.87) -- (.87) 15.41 15.8750 9.51 5.63
1998 (.89) -- (.89) 15.43 15.3125 14.92 9.34
1997 (.89) -- (.89) 14.95 14.1250 0.93 6.34
SELECT TAX-FREE 3 (NXR)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2002(a) (.40) -- (.40) 14.51 13.5800 2.03 2.64
2001 (.81) -- (.81) 14.53 13.7000 12.97 7.36
2000 (.82) -- (.82) 14.32 12.8750 (10.29) 1.11
1999 (.82) -- (.82) 14.98 15.2500 7.78 5.76
1998 (.83) -- (.83) 14.96 14.9375 19.38 10.24
1997 (.83) -- (.83) 14.35 13.2500 3.30 6.85
CALIFORNIA SELECT TAX-FREE (NXC)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2002(a) (.38) -- (.38) 14.79 14.1900 4.56 2.64
2001 (.79) (.01) (.80) 14.79 13.9400 7.23 7.21
2000 (.79) (.02) (.81) 14.57 13.7500 (7.57) 0.90
1999 (.79) -- (.79) 15.26 15.7500 8.22 5.65
1998 (.80) -- (.80) 15.21 15.3125 16.52 10.41
1997 (.80) -- (.80) 14.53 13.8750 3.06 6.46
NEW YORK SELECT TAX-FREE (NXN)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2002(a) (.38) -- (.38) 14.49 13.7500 0.49 2.48
2001 (.78) -- (.78) 14.51 14.0500 17.36 7.02
2000 (.78) -- (.78) 14.31 12.6875 (11.18) 1.21
1999 (.78) -- (.78) 14.92 15.1250 6.14 5.40
1998 (.78) -- (.78) 14.91 15.0000 18.31 10.07
1997 (.78) -- (.78) 14.28 13.3750 4.91 5.79
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------------------------------------------
BEFORE CREDIT AFTER CREDIT***
------------------------------- ----------------------------
RATIO OF NET RATIO OF NET
ENDING RATIO OF INVESTMENT RATIO OF INVESTMENT
NET EXPENSES TO INCOME TO EXPENSES TO INCOME TO PORTFOLIO
ASSETS AVERAGE AVERAGE AVERAGE AVERAGE TURNOVER
(000) NET ASSETS NET ASSETS NET ASSETS NET ASSETS RATE
-----------------------------------------------------------------------------------------------------------------------------------
SELECT TAX-FREE (NXP)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2002(a) $245,999 .38%* 5.88%* .37%* 5.89%* 13%
2001 246,475 .35 6.06 .35 6.07 2
2000 243,814 .36 5.97 .36 5.97 --
1999 254,635 .36 5.78 .36 5.78 1
1998 255,865 .36 5.83 .36 5.83 1
1997 248,092 .39 5.97 .39 5.97 1
SELECT TAX-FREE 2 (NXQ)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2002(a) 261,400 .43* 5.81* .42* 5.82* 5
2001 262,144 .41 5.89 .40 5.90 2
2000 259,660 .40 5.82 .40 5.82 1
1999 271,240 .40 5.65 .40 5.65 1
1998 271,752 .40 5.72 .40 5.72 --
1997 263,176 .42 5.86 .42 5.86 2
SELECT TAX-FREE 3 (NXR)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2002(a) 188,123 .46* 5.54* .45* 5.55* 3
2001 188,344 .47 5.66 .46 5.67 2
2000 185,671 .41 5.65 .41 5.65 --
1999 194,165 .42 5.45 .42 5.45 --
1998 193,899 .42 5.56 .42 5.56 --
1997 186,065 .44 5.74 .44 5.74 5
CALIFORNIA SELECT TAX-FREE (NXC)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2002(a) 92,570 .44* 5.29* .43* 5.30* 6
2001 92,517 .43 5.38 .42 5.39 2
2000 91,166 .45 5.37 .45 5.38 3
1999 95,501 .44 5.20 .44 5.20 1
1998 95,164 .44 5.31 .44 5.31 --
1997 90,894 .45 5.47 .45 5.47 --
NEW YORK SELECT TAX-FREE (NXN)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2002(a) 56,607 .49* 4.98* .48* 4.99* 16
2001 56,679 .48 5.39 .47 5.40 3
2000 55,924 .50 5.36 .49 5.37 --
1999 58,303 .49 5.19 .49 5.19 --
1998 58,250 .49 5.30 .49 5.30 --
1997 55,782 .51 5.42 .51 5.42 --
===================================================================================================================================
* 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.
*** After custodian fee credit, where applicable.
(a) For the six months ended September 30, 2001.
See accompanying notes to financial statements.
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Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
Fund
INFORMATION
BOARD OF TRUSTEES
James F. Bacon
William E. Bennett
Jack B. Evans
William T. Kissick
Thomas E. Leafstrand
Timothy R. Schwertfeger
Sheila W. Wellington
FUND MANAGER
Nuveen Institutional Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT
AND SHAREHOLDER SERVICES
JP Morgan Chase 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
Each Fund 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, 2001. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
Serving Investors
FOR GENERATIONS
photo: John Nuveen, Sr.
John Nuveen, Sr.
For over a century, generations of Americans have relied on Nuveen Investments
to help them grow and keep the money they've earned. Financial advisors,
investors and their families have associated Nuveen Investments with quality,
expertise and dependability since 1898. That is why financial advisors have
entrusted the assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen Investments' products and services can help
you preserve your financial security, talk with your financial advisor, or call
us at (800) 257-8787 for more information, including a prospectus where
applicable. Please read that information carefully before you invest.
Invest well. Look ahead. LEAVE YOUR MARK.(SM)
logo: Nuveen Investments.
Nuveen Investments o 333 West Wacker Drive
Chicago, IL 60606 o www.nuveen.com
PSA-1-9-01