UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 33-46942, 811-6623
---------------------
Nuveen California Select Tax-Free Income Portfolio
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: March 31, 2003
------------------
Date of reporting period: September 30, 2003
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMIANNUAL REPORT September 30, 2003
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
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
NUVEEN NEW YORK
SELECT TAX-FREE
INCOME PORTFOLIO
NXN
Photo of: Man holding up child.
Photo of: 2 women and 2 children looking at seashells.
DEPENDABLE,
TAX-FREE INCOME
BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
FASTER INFORMATION
RECEIVE YOUR
NUVEEN FUND REPORT
ELECTRONICALLY
By registering for electronic delivery, you will receive an e-mail as soon as
your Nuveen Fund information is available. Click on the link and you will be
taken directly to the report. Your Fund report can be viewed and saved on your
computer. Your report will arrive faster via e-mail than by traditional mail.
Registering is easy and only takes a few minutes (see instructions at right).
--------------------------------------------------------------------------------
SOME COMMON CONCERNS:
WILL MY E-MAIL ADDRESS BE DISTRIBUTED TO OTHER COMPANIES?
No, your e-mail address is strictly confidential and will not be used for
anything other than notification of shareholder information.
WHAT IF I CHANGE MY MIND AND WANT TO RECEIVE INVESTOR MATERIALS THROUGH REGULAR
MAIL DELIVERY AGAIN?
If you decide you do not like receiving your reports electronically, it's a
simple process to go back to regular mail delivery.
--------------------------------------------------------------------------------
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.INVESTORDELIVERY.COM
2 Refer to the address sheet that accompanied this report. Enter the personal
13-CHARACTER ENROLLMENT NUMBER imprinted near your name.
3 You'll be taken to a page with several options. Select the NEW
ENROLLMENT-CREATE screen. Once there, enter your e-mail address (e.g.
yourID@providerID.com), and a personal, 4-digit PIN number of your choice.
(Pick a number that's easy to remember.)
4 Click Submit. Confirm the information you just entered is correct, then
click Submit again.
5 You should get a confirmation e-mail within 24 hours. If you do not, go
back through these steps to make sure all the information is correct.
6 Use this same process if you need to change your registration information
or cancel internet viewing.
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME DIRECTLY TO YOU FROM NUVEEN,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.NUVEEN.COM
2 Select ACCESS YOUR ACCOUNT. Select the E-REPORT ENROLLMENT section. Click
on Enrollment Today.
3 You'll be taken to a screen that asks for your Social Security number and
e-mail address. Fill in this information, then click Enroll.
4 You should get a confirmation e-mail within 24 hours. If you do not, go
back through these steps to make sure all the information is correct.
5 Use this same process if you need to change your registration information
or cancel internet viewing.
Logo: NUVEEN Investments
Photo of: Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: WE THINK YOUR NUVEEN FUND CAN BE AN IMPORTANT BUILDING BLOCK IN A
PORTFOLIO DESIGNED TO PERFORM WELL THROUGH A VARIETY OF MARKET CONDITIONS.
Dear
SHAREHOLDER
I am very pleased to report that for the six-month period ended September 30,
2003, your Nuveen Portfolio continued to provide you with attractive monthly
tax-free income.
While a number of different Portfolios are covered in this report, each is
managed with the same value investing strategy that puts an emphasis on finding
securities that we think are undervalued or underrated. We believe that there
are always some municipal bonds that the market is not properly valuing, and
that by using a consistent, research-oriented management approach we have the
opportunity to find them for your Portfolio.
We think this is true even with interest rates at the relatively low levels
we've seen over much of the past year. In this low-rate environment, many have
begun to wonder whether interest rates will soon start to rise, and whether that
possibility should cause them to adjust their holdings of fixed-income
investments. We believe that by constructing a carefully balanced portfolio with
the help of a trusted investment professional you may be able to reduce your
overall investment risk and give yourself a better chance to meet your financial
goals. We think that municipal bond investments like your Nuveen Portfolio can
be important building blocks in a portfolio designed to perform well through a
variety of market conditions.
Since 1898, Nuveen Investments has offered financial products and solutions that
incorporate careful research, diversification, and the application of
conservative risk-management principles. We are grateful that you have chosen us
as a partner as you pursue your financial goals. We look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
November 15, 2003
1
Nuveen Select Portfolios
NXP, NXQ, NXR, NXC, NXN
Portfolio Managers'
COMMENTS
Portfolio managers Tom Spalding, Scott Romans, and Paul Brennan discuss economic
and market conditions, key investment strategies, and the recent performance of
the Portfolios. A 27-year veteran of Nuveen, Tom has managed the NXP, NXQ and
NXR since 1999. Scott, who joined Nuveen in 2000, assumed management
responsibility for the California Portfolio (NXC) in January 2003, the same time
that Paul, who has more than 12 years of investment experience, took over
management of the New York Portfolio (NXN).
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE 12-MONTH
PERIOD ENDED SEPTEMBER 30, 2003?
Over the 12-month period, the two greatest influences on the general economy and
the municipal market continued to be historically low interest rates and the
slow pace of economic improvement. In June 2003, the Federal Reserve cut the fed
funds rate to 1%, the lowest level since 1958. Much of the recent concern about
economic recovery centered on the weak labor market--as of September 2003, U.S.
unemployment was 6.1%, up from 5.7% 12 months earlier. At the same time,
inflation remained dormant, with the 12-month advance in the core rate dropping
to 1.2% in September.
The slow rate of economic recovery, low interest rates, and lack of inflationary
pressures helped many municipal bonds perform well over the majority of this
reporting period. During the summer of 2003, however, stronger-than-expected
economic data temporarily precipitated a spike in bond yields and a
corresponding drop in bond prices that impacted overall results across all
fixed-income markets, for the 12-month period ended September 30, 2003.
During January-September 2003, municipal supply nationally remained robust, with
$287 billion in new bonds--up 13% over the same period in 2002.
HOW WERE ECONOMIC AND MARKET CONDITIONS IN CALIFORNIA AND NEW YORK?
Over the past 12 months, both California and New York continued to struggle with
budgetary stresses. California faced a $38 billion budget deficit--the largest
in state history--and the much publicized governor recall election. Although the
state managed to close the fiscal 2004 budget gap with borrowing, spending cuts,
and a number of one-time measures, California still has to contend with
expenditures that are greater than recurring revenues.
In the California municipal market, new supply in the state totaled $47 billion,
up 60% over the same period in 2002, making California the largest state issuer
in the nation. Delays in budget approval, the sizable deficit, and the
uncertainty created by the recall effort also led to several downgrades of
California's general obligation debt over the past 12 months. As of September
2003, the state was rated A3/BBB, by Moody's and Standard & Poor's,
respectively.
Over the 12-month period, both New York State and New York City continued to
struggle with budget problems triggered by the national recession, weak
financial markets, a drop in revenues from personal income and capital gains
taxes, and a decline in tourism. The final state budget for fiscal 2004, which
totaled $92.8 billion, was balanced through a combination of borrowing, spending
cuts, and increased taxes and fees. New York City managed to keep its
2
budget balanced through expenditure reductions, aid from the state and federal
governments, borrowing through the Transitional Finance Authority (TFA), and
increased property taxes.
During the first nine months of 2003, municipal issuance in New York totaled $30
billion, a 19% decrease from the same period in 2002. As of September 2003, New
York State's credit rating was A2/AA by Moody's and S&P respectively, while New
York City was rated A2 with a declining outlook by Moody's and A with a negative
outlook by S&P.
HOW DID THE PORTFOLIOS PERFORM OVER THIS REPORTING PERIOD?
Individual results for these Portfolios, as well as for relevant benchmarks, are
presented in the accompanying table.
TOTAL RETURN LEHMAN LIPPER
MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2
----------------------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
9/30/03 EQUIVALENT3 9/30/03 9/30/03 9/30/03
----------------------------------------------------------------------------
NXP 5.23% 7.26% 4.16% 3.89% 3.35%
----------------------------------------------------------------------------
NXQ 5.29% 7.35% 3.78% 3.89% 3.35%
----------------------------------------------------------------------------
NXR 5.29% 7.35% 4.06% 3.89% 3.35%
----------------------------------------------------------------------------
NXC 5.00% 7.63% 2.89% 2.42% 1.80%
----------------------------------------------------------------------------
NXN 5.04% 7.58% 3.45% 3.99% 3.39%
----------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Portfolio in this report.
For the 12 months ended September 30, 2003, all of the Select Portfolios
outperformed their respective Lipper peer group averages. In addition, NXP, NXR,
and NXC also outperformed their respective Lehman Brothers indexes, while NXQ
and NXN generally performed in line with the national Lehman and Lehman New York
indexes, respectively. As of September 30, 2003, the average durations4 of the
three national Portfolios ranged from 5.12 to 5.69, compared with 8.19 for the
Lehman Brothers Municipal Bond Index. NXC and NXN had durations of 5.87 and
5.63, respectively, compared with 9.02 for the Lehman California index and 7.78
for the Lehman New York index. These durations provided some protection for the
Portfolios as interest rates rose during the summer of 2003, since investments
with shorter durations generally would be expected to outperform those with
longer durations during periods of rising interest rates, all other factors
being equal.
In addition to duration, factors such as call exposure, portfolio trading
activity, and the price movement of specific sectors and holdings also had an
impact on the Portfolios' relative performances during this period. For example,
because investors on the whole tended to be somewhat risk-averse over the past
12 months, insured and higher quality issues were in greater demand, and these
bonds generally performed better than their BBB and non-rated counterparts
during this period. The Select Portfolios held relatively few of the lower-rated
credits, with allocations of BBB bonds ranging from 1% in NXN to 11% in NXQ as
of September 30, 2003, which helped the Portfolios' performances over this
period.
HOW DID THE MARKET ENVIRONMENT AFFECT THE PORTFOLIOS' DIVIDENDS AND SHARE
PRICES?
Over the 12-month period ended September 30, 2003, the Select Portfolios
continued to experience a significant number of bond calls. Consequently, they
were faced with reinvesting call proceeds from higher-coupon bonds into a market
where
1 The total annual returns on common share net asset value (NAV) for the
national Portfolios are compared with the total annual return of the Lehman
Brothers Municipal Bond Index, an unleveraged, unmanaged index comprising a
broad range of investment-grade municipal bonds. The annual returns of NXC and
NXN are compared with those of the Lehman Tax-Exempt Bond indexes for
California and New York, respectively. These unleveraged, unmanaged indexes
comprise a broad range of 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 9 funds in the Lipper General and Insured Unleveraged
Municipal Debt Funds category. NXC's total return is compared with the average
return of the 29 funds in the Lipper California Municipal Debt Funds category,
while the comparison for NXN is based on the average total return of the 21
funds in the Lipper New York Municipal Debt Funds category. Portfolio and
Lipper returns assume reinvestment of dividends.
3 Taxable-equivalent yield represents the yield that must be earned on a taxable
investment, other than an investment that generates qualified dividend income
that is taxable at the maximum rate of 15%, in order 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 28% for the national portfolios. 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 34.5% and 33.5%, respectively, for NXC
and NXN.
4 Duration is a measure of a Portfolio's NAV volatility in reaction to interest
rate movements.
3
interest rates remained historically low. This led to a reduction of the
Portfolios' earning power and necessitated three dividend cuts in NXP, NXQ, and
NXC, two in NXR, and one in NXN over this period.
Increased volatility in the fixed-income markets during the summer of 2003 led
to an overall weakening of bond prices. The Portfolios' share prices and NAVs
finished this 12-month period lower than they had been at the beginning. As of
September 30, 2003, the three national Portfolios and NXN continued to trade at
discounts to their common share NAVs, while NXC had moved from trading at a
premium to a discount (see charts on individual Performance Overview pages).
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE PORTFOLIOS DURING THE FISCAL YEAR
ENDED SEPTEMBER 30, 2003?
Over this 12-month reporting period, we continued to place strong emphasis on
diversifying the portfolios, improving call protection, and enhancing
dividend-paying capabilities. One of our primary strategies focused on managing
the Funds' durations in order to enhance our ability to mitigate interest rate
risk and produce potentially more consistent returns over time. Interest rate
risk is the risk that the value of a Fund's portfolio will decline when market
interest rates rise. The longer the duration of a Fund's portfolio, the greater
its interest rate risk.
In order to manage the Portfolios' durations, the majority of our purchase
activity focused on value opportunities in the intermediate part of the yield
curve (i.e., bonds that mature in 15 to 20 years). In many cases, bonds in this
part of the curve offered yields similar to those of longer-term bonds but, in
our opinion, has less interest rate risk.
Given the current geopolitical and economic climate, we continued to believe
that maintaining strong credit quality remains a vital requirement. As of
September 30, 2003, the Nuveen Select Portfolios offered excellent credit
quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from
71% to 79% in the three national Portfolios. NXC and NXN, which continued to
make the transition from insured to non-insured Portfolios, have selectively
added uninsured bonds over the past 12 months, but continued to hold 71% and
83%, respectively, in the AAA/U.S. guaranteed category.
WHAT IS YOUR OUTLOOK FOR BOND CALL IN THE PORTFOLIOS?
Looking ahead at potential bond calls, the Select Portfolios have exposure
ranging from 12% in NXN to 26% in NXC through 2004. During this reporting
period, we worked to mitigate the Portfolios' call risk. In 2005, the
Portfolios' call exposure will drop off significantly, ranging from zero in NXR
and NXC to 8% in NXN. The number of actual calls in all of the Portfolios will
depend largely on market interest rates in coming months. In general, our
approach was to hold callable bonds until they were in fact called and then
reinvest the proceeds in credits that could help to extend durations and support
the Portfolios' yields, especially as rates rose during the summer.
4
Nuveen Select Tax-Free Income Portfolio
Performance
OVERVIEW As of September 30, 2003
NXP
Pie chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 61%
AA 17%
A 16%
BBB 5%
BB or lower 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.00
--------------------------------------------------
Common Share Net Asset Value $14.84
--------------------------------------------------
Market Yield 5.23%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.26%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $243,063
--------------------------------------------------
Average Effective Maturity (Years) 14.55
--------------------------------------------------
Average Duration 5.58
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/19/92)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 3.55% 4.16%
--------------------------------------------------
5-Year 2.90% 4.91%
--------------------------------------------------
10-Year 5.11% 5.63%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Healthcare 19%
--------------------------------------------------
U.S. Guaranteed 18%
--------------------------------------------------
Tax Obligation/Limited 16%
--------------------------------------------------
Transportation 13%
--------------------------------------------------
Utilities 10%
--------------------------------------------------
Bar chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.068
Nov 0.068
Dec 0.065
Jan 0.065
Feb 0.065
Mar 0.062
Apr 0.062
May 0.062
Jun 0.062
Jul 0.062
Aug 0.062
Sep 0.061
Line chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
10/1/02 14.36
13.97
13.75
13.59
13.75
13.85
13.51
13.67
13.89
14.01
13.72
13.42
13.6
13.84
13.6
13.7
13.83
13.9
13.8
13.95
13.92
13.91
13.9
13.86
13.78
14.07
13.86
13.9
13.95
13.9
14.14
14.07
14.13
14.6
14.42
14.49
14.5
14.51
14.28
13.76
13.41
13.84
13.6
13.5
13.51
13.85
13.9
13.82
9/30/03 13.98
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield that must be earned on a taxable
investment, other than an investment that generates qualified dividend income
that is taxable at a maximum rate of 15%, in order 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 28%.
2 The Fund also paid shareholders a capital gains distribution in December 2002
of $0.1688 per share.
5
Nuveen Select Tax-Free Income Portfolio 2
Performance
OVERVIEW As of September 30, 2003
NXQ
Pie chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 58%
AA 21%
A 9%
BBB 11%
BB or lower 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $13.26
--------------------------------------------------
Common Share Net Asset Value $14.45
--------------------------------------------------
Market Yield 5.29%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.35%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $254,495
--------------------------------------------------
Average Effective Maturity (Years) 17.14
--------------------------------------------------
Average Duration 5.12
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 5/21/92)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -2.62% 3.78%
--------------------------------------------------
5-Year 2.12% 4.52%
--------------------------------------------------
10-Year 4.84% 5.35%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Healthcare 17%
--------------------------------------------------
Transportation 16%
--------------------------------------------------
Utilities 15%
--------------------------------------------------
Tax Obligation/Limited 11%
--------------------------------------------------
U.S. Guaranteed 10%
--------------------------------------------------
Bar chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.0665
Nov 0.0665
Dec 0.0635
Jan 0.0635
Feb 0.0635
Mar 0.0605
Apr 0.0605
May 0.0605
Jun 0.0605
Jul 0.0605
Aug 0.0605
Sep 0.0585
Line chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
10/1/02 14.66
14.19
13.52
13.33
13.64
13.54
13.3
13.33
13.36
13.58
13.2
13.01
13.2
13.42
13.1
13.18
13.1
13.31
13.39
13.29
13.25
13.45
13.42
13.3
13.14
13.33
13.36
13.36
13.44
13.38
13.53
13.68
13.8
13.87
14.03
14.03
14.05
14.01
13.89
13.75
13.18
13.31
13.04
13.02
13.06
13.2
13.15
13.23
9/30/03 13.2
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield that must be earned on a taxable
investment, other than an investment that generates qualified dividend income
that is taxable at a maximum rate of 15%, in order 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 28%.
2 The Fund also paid shareholders a capital gains and net ordinary income
distribution in December 2002 of $0.1806 per share.
6
Nuveen Select Tax-Free Income Portfolio 3
Performance
OVERVIEW As of September 30, 2003
NXR
Pie chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 46%
AA 25%
A 21%
BBB 8%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $13.05
--------------------------------------------------
Common Share Net Asset Value $14.27
--------------------------------------------------
Market Yield 5.29%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.35%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $184,934
--------------------------------------------------
Average Effective Maturity (Years) 16.52
--------------------------------------------------
Average Duration 5.69
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 7/24/92)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -1.91% 4.06%
--------------------------------------------------
5-Year 2.13% 4.48%
--------------------------------------------------
10-Year 4.91% 5.38%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Utilities 22%
--------------------------------------------------
Healthcare 18%
--------------------------------------------------
Tax Obligation/Limited 12%
--------------------------------------------------
U.S. Guaranteed 8%
--------------------------------------------------
Transportation 8%
--------------------------------------------------
Bar chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.0635
Nov 0.0635
Dec 0.0605
Jan 0.0605
Feb 0.0605
Mar 0.0575
Apr 0.0575
May 0.0575
Jun 0.0575
Jul 0.0575
Aug 0.0575
Sep 0.0575
Line chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
10/1/02 13.99
13.56
13.07
13.17
13.09
13.12
12.96
12.83
12.81
13.00
12.89
12.78
12.95
13.22
13.05
12.9
13.00
13.11
13.18
13.02
12.99
13.13
13.21
12.95
12.87
13.00
12.98
12.97
13.05
13.14
13.21
13.31
13.45
13.57
13.77
13.76
13.66
13.64
13.56
13.05
13.05
13.02
12.77
12.77
12.85
12.87
12.92
12.94
9/30/03 13.00
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield that must be earned on a taxable
investment, other than an investment that generates qualified dividend income
that is taxable at a maximum rate of 15%, in order 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 28%.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2002 of $0.0659 per share.
7
Nuveen California Select Tax-Free Income Portfolio
Performance
OVERVIEW As of September 30, 2003
NXC
Pie chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 71%
AA 2%
A 19%
BBB 8%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $13.45
--------------------------------------------------
Common Share Net Asset Value $14.52
--------------------------------------------------
Market Yield 5.00%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 6.94%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 7.63%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $90,826
--------------------------------------------------
Average Effective Maturity (Years) 15.92
--------------------------------------------------
Average Duration 5.87
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 6/19/92)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -5.97% 2.89%
--------------------------------------------------
5-Year 2.36% 4.37%
--------------------------------------------------
10-Year 4.46% 5.08%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 21%
--------------------------------------------------
Transportation 16%
--------------------------------------------------
Healthcare 16%
--------------------------------------------------
Education and Civic Organizations 15%
--------------------------------------------------
Utilities 10%
--------------------------------------------------
Bar chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.061
Nov 0.061
Dec 0.058
Jan 0.058
Feb 0.058
Mar 0.057
Apr 0.057
May 0.057
Jun 0.057
Jul 0.057
Aug 0.057
Sep 0.056
Line chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
10/1/02 14.97
15.05
14.8
14.1
13.92
14.05
14.2
14.07
14.23
14.46
13.62
13.5
13.54
13.73
13.49
13.65
14.35
13.47
13.55
13.55
13.9
13.8
13.95
13.65
13.37
13.57
13.45
13.43
13.5
13.64
13.85
13.65
13.9
13.97
14.04
14.03
14.08
14.08
13.88
13.37
13.38
13.49
13.27
13.19
13.26
13.41
13.45
13.48
9/30/03 13.4
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield that must be earned on a taxable
investment, other than an investment that generates qualified dividend income
that is taxable at a maximum rate of 15%, in order 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 28%. 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 34.5%.
2 The Fund also paid shareholders a capital gains distribution in December 2002
of $0.1358 per share.
8
Nuveen New York Select Tax-Free Income Portfolio
Performance
OVERVIEW As of September 30, 2003
NXN
Pie chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 83%
AA 14%
A 2%
BBB 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $13.58
--------------------------------------------------
Common Share Net Asset Value $14.49
--------------------------------------------------
Market Yield 5.04%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.00%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 7.58%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $56,614
--------------------------------------------------
Average Effective Maturity (Years) 17.16
--------------------------------------------------
Average Duration 5.63
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 6/19/92)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 1.95% 3.45%
--------------------------------------------------
5-Year 3.41% 4.56%
--------------------------------------------------
10-Year 4.95% 5.06%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Education and Civic Organizations 13%
--------------------------------------------------
Water and Sewer 12%
--------------------------------------------------
U.S. Guaranteed 11%
--------------------------------------------------
Long-Term Care 9%
--------------------------------------------------
Healthcare 9%
--------------------------------------------------
Bar chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.058
Nov 0.058
Dec 0.057
Jan 0.057
Feb 0.057
Mar 0.057
Apr 0.057
May 0.057
Jun 0.057
Jul 0.057
Aug 0.057
Sep 0.057
Line chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
10/1/02 14.07
13.89
13.35
13.12
13.04
13.18
13.31
13.15
13.37
13.41
13.2
13.25
13.5
13.86
13.64
13.45
13.55
13.4
13.21
13.25
13.21
13.32
13.38
13.26
13.2
13.7
13.4
13.41
13.47
13.5
13.43
13.9
14.06
14.54
14.6
14.5
14.49
14.29
14.4
13.99
13.64
13.54
13.15
13.61
13.59
13.59
13.48
13.6
9/30/03 13.52
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield that must be earned on a taxable
investment, other than an investment that generates qualified dividend income
that is taxable at a maximum rate of 15%, in order 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 28%. 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 33.5%.
2 The Fund also paid shareholders a capital gains distribution in December 2002
of $0.0939 per share.
9
Shareholder
MEETING REPORT
The Shareholder Meeting was held in Chicago, Illinois on July 28, 2003.
NXP NXQ NXR NXC NXN
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common Common Common Common Common
Shares Shares Shares Shares Shares
====================================================================================================================================
William E. Bennett
For 9,585,604 10,839,163 7,465,420 3,512,205 2,376,979
Withhold 281,655 335,435 252,364 62,855 59,224
------------------------------------------------------------------------------------------------------------------------------------
Total 9,867,259 11,174,598 7,717,784 3,575,060 2,436,203
====================================================================================================================================
Robert P. Bremner
For 9,580,765 10,865,396 7,481,866 3,511,842 2,377,235
Withhold 286,494 309,202 235,918 63,218 58,968
------------------------------------------------------------------------------------------------------------------------------------
Total 9,867,259 11,174,598 7,717,784 3,575,060 2,436,203
====================================================================================================================================
Lawrence H. Brown
For 9,570,178 10,843,836 7,481,765 3,508,442 2,378,635
Withhold 297,081 330,762 236,019 66,618 57,568
------------------------------------------------------------------------------------------------------------------------------------
Total 9,867,259 11,174,598 7,717,784 3,575,060 2,436,203
====================================================================================================================================
Jack B. Evans
For 9,573,475 10,854,973 7,485,097 3,512,375 2,378,779
Withhold 293,784 319,625 232,687 62,685 57,424
------------------------------------------------------------------------------------------------------------------------------------
Total 9,867,259 11,174,598 7,717,784 3,575,060 2,436,203
====================================================================================================================================
Anne E. Impellizzeri
For 9,559,362 10,864,865 7,494,581 3,508,442 2,377,235
Withhold 307,897 309,733 223,203 66,618 58,968
------------------------------------------------------------------------------------------------------------------------------------
Total 9,867,259 11,174,598 7,717,784 3,575,060 2,436,203
====================================================================================================================================
William L. Kissick
For 9,584,848 10,836,445 7,478,789 3,510,042 2,378,879
Withhold 282,411 338,153 238,995 65,018 57,324
------------------------------------------------------------------------------------------------------------------------------------
Total 9,867,259 11,174,598 7,717,784 3,575,060 2,436,203
====================================================================================================================================
Thomas E. Leafstrand
For 9,574,271 10,856,547 7,489,179 3,507,442 2,379,879
Withhold 292,988 318,051 228,605 67,618 56,324
------------------------------------------------------------------------------------------------------------------------------------
Total 9,867,259 11,174,598 7,717,784 3,575,060 2,436,203
====================================================================================================================================
Peter R. Sawers
For 9,557,883 10,864,188 7,481,398 3,510,042 2,377,635
Withhold 309,376 310,410 236,386 65,018 58,568
------------------------------------------------------------------------------------------------------------------------------------
Total 9,867,259 11,174,598 7,717,784 3,575,060 2,436,203
====================================================================================================================================
William J. Schneider
For 9,579,588 10,867,093 7,486,276 3,511,842 2,378,635
Withhold 287,671 307,505 231,508 63,218 57,568
------------------------------------------------------------------------------------------------------------------------------------
Total 9,867,259 11,174,598 7,717,784 3,575,060 2,436,203
====================================================================================================================================
10
NXP NXQ NXR NXC NXN
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common Common Common Common Common
Shares Shares Shares Shares Shares
====================================================================================================================================
Timothy R. Schwertfeger
For 9,585,604 10,876,268 7,485,276 3,513,042 2,379,779
Withhold 281,655 298,330 232,508 62,018 56,424
------------------------------------------------------------------------------------------------------------------------------------
Total 9,867,259 11,174,598 7,717,784 3,575,060 2,436,203
====================================================================================================================================
Judith M. Stockdale
For 9,568,139 10,839,163 7,467,273 3,511,842 2,376,235
Withhold 299,120 335,435 250,511 63,218 59,968
------------------------------------------------------------------------------------------------------------------------------------
Total 9,867,259 11,174,598 7,717,784 3,575,060 2,436,203
====================================================================================================================================
Sheila W. Wellington
For 9,581,830 10,830,939 7,472,299 3,509,375 2,378,879
Withhold 285,429 343,659 245,485 65,685 57,324
------------------------------------------------------------------------------------------------------------------------------------
Total 9,867,259 11,174,598 7,717,784 3,575,060 2,436,203
====================================================================================================================================
TO APPROVE A CHANGE TO A FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO LENDING
For 6,903,606 7,329,776 5,307,115 2,215,804 1,355,955
Against 641,808 758,222 738,517 246,119 108,941
Abstain 375,230 390,384 224,228 147,775 93,367
Broker Non-Vote 1,946,615 2,696,216 1,447,924 965,362 877,940
------------------------------------------------------------------------------------------------------------------------------------
Total 9,867,259 11,174,598 7,717,784 3,575,060 2,436,203
====================================================================================================================================
TO APPROVE A CHANGE TO A FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO BORROWING
For 6,849,027 7,322,653 5,281,398 2,200,960 1,343,187
Against 676,339 751,611 741,567 250,799 120,126
Abstain 395,278 404,118 246,895 157,939 94,950
Broker Non-Vote 1,946,615 2,696,216 1,447,924 965,362 877,940
------------------------------------------------------------------------------------------------------------------------------------
Total 9,867,259 11,174,598 7,717,784 3,575,060 2,436,203
====================================================================================================================================
11
Nuveen Select Tax-Free Income Portfolio (NXP)
Portfolio of
INVESTMENTS September 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.1%
$ 325 Alabama Housing Finance Authority, Single Family Mortgage 4/04 at 102.00 Aaa $ 334,360
Revenue Bonds, Collateralized Home Mortgage Program,
Series 1994A-1, 6.550%, 10/01/14
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.1%
2,475 Alaska Municipal Bond Bank Authority, General Obligation Bonds, 12/13 at 100.00 AAA 2,607,412
Series 2003E, 5.250%, 12/01/23 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 7.1%
3,325 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 A3 3,792,628
Bonds, Series 2002A, 6.000%, 5/01/14
4,750 State Public Works Board of the State of California, Lease 3/04 at 102.00 Aaa 4,965,318
Revenue Bonds, California Community Colleges Projects,
1994 Series B, 7.000%, 3/01/14 (Pre-refunded to 3/01/04)
3,000 California State Public Works Board, Lease Revenue Bonds, 11/04 at 102.00 Aaa 3,249,660
Department of Corrections, California State Prison at Monterey
County - Soledad II, Series 1994A, 6.875%, 11/01/14
(Pre-refunded to 11/01/04)
1,450 California Statewide Community Development Authority, 2/04 at 101.00 A3 1,470,184
Hospital Revenue Certificates of Participation, Cedars-Sinai
Medical Center, Series 1992, 6.500%, 8/01/15
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 2,675,850
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
1,130 Department of Water and Power of the City of Los Angeles, 7/11 at 100.00 AAA 1,143,537
California, Waterworks Revenue Bonds, Series 2001A
Refunding, 5.125%, 7/01/41 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 13.1%
3,000 Colorado Health Facilities Authority, Revenue Bonds, Catholic 9/12 at 100.00 AA 3,134,400
Health Initiatives, Series 2002A, 5.500%, 3/01/22
1,000 Colorado Water Resources and Power Development Authority, 11/10 at 100.00 AAA 1,137,890
Small Water Resources Revenue Bonds, Series 2000A,
5.800%, 11/01/20 - FGIC Insured
5,000 City and County of Denver, Colorado, Airport System Revenue 11/11 at 100.00 AAA 5,430,350
Refunding Bonds, Series 2001B, 5.625%, 11/15/17
(Alternative Minimum Tax) - FGIC Insured
10,750 City and County of Denver, Colorado, Airport System Revenue No Opt. Call A 13,383,428
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
Denver Convention Center Hotel Authority, Colorado, Convention
Center Hotel Senior Revenue Bonds, Series 2003A:
1,000 5.000%, 12/01/22 - XLCA Insured 12/13 at 100.00 AAA 1,033,370
3,000 5.000%, 12/01/23 - XLCA Insured 12/13 at 100.00 AAA 3,063,390
5,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 AAA 1,188,150
Bonds, Series 2000A, 0.000%, 9/01/28 - MBIA Insured
3,160 Northwest Parkway Public Highway Authority, Colorado, Revenue 6/11 at 102.00 AAA 3,481,498
Bonds, Senior Series 2001A, 5.500%, 6/15/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.5%
1,000 District of Columbia, Hospital Revenue and Refunding Bonds 8/06 at 102.00 AAA 1,122,620
(Medlantic Healthcare Group, Inc. Issue), Series 1996A,
5.750%, 8/15/16 - MBIA Insured
12
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 7.0%
$ 250 Escambia County, Florida, Pollution Control Revenue Bonds, 12/03 at 102.00 BBB $ 250,257
Champion International Corporation Project, Series 1993,
5.875%, 6/01/22 (Alternative Minimum Tax)
10,000 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 AA 10,626,300
Refunding Bonds, Series 2002-17 Issue 2, 5.000%, 10/01/17
6,100 Jacksonville Electric Authority, Florida, St. John's River Power 10/03 at 100.00 AA 6,115,738
Park System Revenue Bonds, Issue Two, Series Nine
Refunding, 5.250%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.6%
1,330 State of Hawaii, Certificates of Participation, Kapolei State 11/08 at 101.00 AAA 1,420,613
Office Building, 1998 Series A, 5.000%, 5/01/17 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 13.3%
City of Chicago Heights, Illinois, General Obligation Corporate
Purpose Bonds, Series 1993:
3,820 5.650%, 12/01/15 - FGIC Insured 12/08 at 100.00 AAA 4,314,881
2,600 5.650%, 12/01/17 - FGIC Insured 12/08 at 100.00 AAA 2,936,830
2,500 City of Chicago, Illinois, Chicago O'Hare International Airport, No Opt. Call Ca 552,500
Special Facility Revenue Refunding Bonds, United Air Lines,
Inc. Project, Series 2001C, 6.300%, 5/01/16#
1,000 Illinois Educational Facilities Authority, Revenue Bonds, 5/08 at 101.00 A 1,039,010
Midwestern University, Series 1998B, 5.500%, 5/15/18 -
ACA Insured
2,365 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call N/R*** 2,663,865
Series 1992B (Evangelical Hospitals Corporation),
6.500%, 4/15/09
1,320 Illinois Health Facilities Authority, Revenue Bonds, Decatur 10/11 at 100.00 A 1,398,936
Memorial Hospital, Series 2001, 5.600%, 10/01/16
2,700 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/12 at 100.00 A- 2,952,315
Hospital, Series 2002A, 6.000%, 7/01/17
2,225 Illinois Health Facilities Authority, Revenue Bonds, Elmhurst 1/13 at 100.00 A2 2,455,688
Memorial Healthcare, Series 2002 Refunding,
6.250%, 1/01/17
800 Illinois Housing Development Authority, Homeowner Mortgage 2/10 at 100.00 AA 857,504
Revenue Bonds, Series 2000-D3, 5.700%, 8/01/17
1,500 Illinois Housing Development Authority, Homeowner Mortgage 7/10 at 100.00 AA 1,613,925
Revenue Bonds, Series 1999-G1, 5.700%, 8/01/17
600 Illinois Educational Facilities Authority, Student Housing Revenue 5/12 at 101.00 Baa2 604,524
Bonds, Educational Advancement Foundation Fund, University
Center Project, Series 2002, 6.000%, 5/01/22
2,000 State of Illinois, General Obligation Bonds, Series of 8/04 at 102.00 Aa3*** 2,120,520
August 1994, 5.875%, 8/01/14 (Pre-refunded
to 8/01/04)
3,125 Metropolitan Pier and Exposition Authority, Illinois, No Opt. Call AAA 1,664,125
McCormick Place Expansion Project Bonds, Series 1992A,
0.000%, 6/15/17 - FGIC Insured
5,000 Metropolitan Pier and Exposition Authority, Illinois, 6/12 at 101.00 AAA 5,192,550
McCormick Place Expansion Project Refunding Revenue
Bonds, Series 2002B, 5.000%, 6/15/21 - MBIA Insured
Yorkville United City, Illinois, General Obligation Debt
Certificates, Series 2003:
1,000 5.000%, 12/15/19 - RAAI Insured 12/11 at 100.00 AA 1,021,880
1,000 5.000%, 12/15/20 - RAAI Insured 12/11 at 100.00 AA 1,015,740
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 7.5%
5,000 Duneland School Building Corporation, Indiana, First Mortgage 2/09 at 101.00 AAA 5,343,150
Bonds, Series 1999 Refunding, 5.125%, 2/01/18 -
MBIA Insured
2,000 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,524,660
Refunding Bonds, Series 1993, Columbus Regional Hospital,
7.000%, 8/15/15 - FSA Insured
9,855 Indianapolis, Indiana, Local Public Improvement Bond Bank, 7/12 at 100.00 AAA 10,345,385
Series 2002A, Waterworks Project, 5.125%, 7/01/21 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.7%
4,030 City of Wichita, Kansas, Revenue Bonds (CSJ Health System 11/03 at 100.00 A+*** 4,052,367
of Wichita, Inc.), Series 1985 XXV (Remarketed),
7.200%, 10/01/15
13
Nuveen Select Tax-Free Income Portfolio (NXP) (continued)
Portfolio of INVESTMENTS September 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.9%
$ 1,100 County of Jefferson, Kentucky, Health System Revenue Bonds, 10/08 at 101.00 AAA $ 1,160,280
Series 1998 (Alliant Health System, Inc.), 5.125%, 10/01/18 -
MBIA Insured
3,230 Lexington-Fayette Urban County Government (Kentucky) 11/04 at 102.00 AAA 3,493,697
Governmental Project Revenue Bonds, Series 1994 (University
of Kentucky Alumini Association, Inc. Commonwealth Library
Project), 6.750%, 11/01/15 (Pre-refunded to 11/01/04) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.2%
500 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA- 558,920
Revenue Bonds, Partners HealthCare System Issue, Series C,
6.000%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.5%
2,900 Michigan State Hospital Finance Authority, Revenue Bond, 12/12 at 100.00 AA- 2,956,550
Trinity Health Credit, Series 2002C Refunding,
5.375%, 12/01/30
1,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 Ba3 634,960
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.125%, 8/15/18
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.4%
900 Minnesota Housing Finance Agency, Single Family Mortgage 7/08 at 101.00 AA+ 940,392
Revenue Bonds, Series 1995A, 5.200%, 1/01/17
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.6%
3,600 Calhoun County (Mississippi), Solid Waste Disposal Revenue 4/07 at 103.00 BBB 3,916,260
Bonds (Weyerhauser Company Project), Series 1992,
6.875%, 4/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 5.5%
2,500 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AAA 2,570,775
Improvement Revenue Bonds, Series 2003, 5.000%, 7/01/23 -
AMBAC Insured
6,025 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 6,303,777
Revenue Bonds, Las Vegas Monorail Project, 1st Tier
Series 2000, 5.375%, 1/01/40 - AMBAC Insured
4,070 Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 6/12 at 100.00 AAA 4,433,939
5.500%, 6/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.5%
1,235 New Hampshire Housing Finance Authority, Single Family 5/11 at 100.00 Aa2 1,282,844
Mortgage Acquisition Bonds, Series 2001A, 5.600%, 7/01/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.0%
2,500 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa2 2,508,200
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/23
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 2.9%
5,170 The City of New York, New York, General Obligation Bonds, 8/04 at 101.50 Aaa 5,472,497
Fiscal 1995 Series A, 6.250%, 8/01/10 (Pre-refunded
to 8/01/04)
1,600 Dormitory Authority of the State of New York, Mount Sinai 7/10 at 101.00 Ba1 1,624,080
NYU Health Obligated Group, Revenue Bonds, Series 2000A,
6.500%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.8%
1,880 Ohio Housing Finance Agency, Residential Mortgage Revenue 9/07 at 102.00 Aaa 1,992,668
Bonds, Series 1997A, Remarketed, 6.050%, 9/01/17
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.2%
500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 BBB+ 497,765
Bonds, Widner University, Series 2003, 5.250%, 7/15/24
(WI, settling 10/01/03)
14
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 6.9%
$ 10,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- $ 11,157,500
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/19
1,500 Lexington County Health Services District, South Carolina, 11/13 at 100.00 A 1,645,650
Hospital Revenue Bonds, Series 2003 Refunding and
Improvement, 6.000%, 11/01/18
2,500 South Carolina Jobs Economic Development Authority, Revenue 11/12 at 100.00 A- 2,535,450
Bonds, Bon Secours Health System Inc, Series 2002A,
5.625%, 11/15/30
1,500 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 1,332,945
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 10.3%
5,000 Brazos River Harbor Navigation District, Brazoria County, Texas, 5/12 at 101.00 A- 5,354,150
Environmental Facilities Revenue Bonds, Dow Chemical
Company Project, 2002 Series A-6, 6.250%, 5/15/33
(Alternative Minimum Tax) (Mandatory put 5/15/17)
2,000 Conroe Independent School District, Texas, Unlimited Tax 2/04 at 100.00 AAA 2,021,420
Schoolhouse and Refunding Bonds, Series 1993,
5.000%, 2/01/18
6,150 Dallas Independent School District, Dallas County, Texas, 2/12 at 100.00 AAA 6,590,463
General Obligation Bonds, Series 2002 Refunding,
5.250%, 2/15/20
4,370 Harris County Health Facilities Development Corporation, Texas, 6/04 at 100.00 A3*** 4,547,859
Hospital Revenue Bonds, Memorial Hospital System,
Series 1992, 7.125%, 6/01/15 (Pre-refunded to 6/01/04)
2,300 Harris County, Texas, Health Facilities Development Corporation, 11/13 at 100.00 AAA 2,324,472
Thermal Utility Revenue Bonds, TECO Project, Series 2003,
5.000%, 11/15/30 - MBIA Insured
3,500 Irving Independent School District, Dallas County, Texas, 2/12 at 100.00 AAA 3,524,815
General Obligation Bonds, Series 2002A Refunding,
5.000%, 2/15/31
San Antonio, Texas, Water System Revenue Refunding Bonds,
Series 1992:
95 6.000%, 5/15/16 (Pre-refunded to 5/15/07) - MBIA Insured 5/07 at 100.00 AAA 109,032
465 6.000%, 5/15/16 - MBIA Insured No Opt. Call AAA 548,495
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 8.4%
5,700 Public Utility District No. 1 of Snohomish County, Washington, 1/04 at 100.00 Aaa 6,968,079
Generation System Revenue Bonds, Series 1989,
6.750%, 1/01/12
3,000 Washington State Health Care Facilities Authority, Revenue 12/07 at 101.00 AAA 3,161,610
Bonds, Catholic Health Initiatives, Series 1997A,
5.125%, 12/01/17 - MBIA Insured
9,750 Washington State Health Care Facilities Authority, Revenue 10/11 at 100.00 AAA 10,333,830
Bonds, Providence Health System, Series 2001A,
5.125%, 10/01/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.9%
1,885 Marshall County, West Virginia, Special Obligation Refunding No Opt. Call AAA 2,240,492
Bonds, Series 1992, 6.500%, 5/15/10
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.3%
4,400 Wisconsin Health and Educational Facilities Authority, Revenue 6/05 at 100.00 AAA 4,501,553
Bonds, Series 1993 (Hospital Sisters Services, Inc.
Obligated Group), 5.375%, 6/01/18 - MBIA Insured
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A 1,058,920
Bonds, Wheaton Franciscan Services, Series 2003A,
5.500%, 8/15/17
------------------------------------------------------------------------------------------------------------------------------------
$ 228,310 Total Long-Term Investments (cost $223,020,006) - 97.3% 236,601,647
=============-----------------------------------------------------------------------------------------------------------------------
15
Nuveen Select Tax-Free Income Portfolio (NXP) (continued)
Portfolio of INVESTMENTS September 30, 2003 (Unaudited)
PRINCIPAL MARKET
AMOUNT (000) DESCRIPTION RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.6%
$ 500 Minnesota Higher Education Facilities Authority, Revenue Bonds, VMIG-1 $ 500,000
Saint Olaf College, Series Five-H, Variable Rate Demand
Obligations, 1.200%, 10/01/30+
1,000 Multnomah County, Oregon, Higher Education Revenue Bonds, VMIG-1 1,000,000
Series 1999, Concordia University Project, Variable Rate
Demand Bonds, 1.250%, 12/01/29+
------------------------------------------------------------------------------------------------------------------------------------
$ 1,500 Total Short-Term Investments (cost $1,500,000) 1,500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $224,520,006) - 97.9% 238,101,647
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 4,961,328
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $243,062,975
====================================================================================================================
* 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. Such securities are normally
considered to be equivalent to AAA rated securities.
# On December 9, 2002, UAL Corporation, the holding
company of United Air Lines, Inc. filed for federal
bankruptcy protection. The Adviser determined that it
was likely United would not remain current on their
interest payment obligations with respect to these
bonds and thus has stopped accruing interest.
N/R Investment is not rated.
(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.
16
Nuveen Select Tax-Free Income Portfolio 2 (NXQ)
Portfolio of
INVESTMENTS September 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.6%
$ 1,000 City of Fort Smith, Arkansas, Water and Sewer Revenue Bonds, 10/11 at 100.00 AAA $ 1,059,200
Series 2002A Refunding and Construction,
5.000%, 10/01/19 - FSA Insured
1,000 Sebastian County, Arkansas, Sparks Regional Medical Center, 11/11 at 101.00 Baa1 992,460
Public Health Facilities Board Hospital Revenue Improvement
Bonds, Series 2001A, 5.250%, 11/01/21
2,000 Board of Trustees of The University of Arkansas at Fayetteville, 12/12 at 100.00 Aaa 2,028,660
Various Facilities Revenue Bonds, Series 2002,
5.000%, 12/01/32 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 7.9%
3,325 California Department of Water Resources, Power Supply 5/12 at 101.00 A3 3,792,628
Revenue Bonds, Series 2002A, 6.000%, 5/01/14
3,250 State Public Works Board of the State of California, Lease 3/04 at 102.00 Aaa 3,397,323
Revenue 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 No Opt. Call Aa2 2,281,700
Revenue Refunding Bonds (The Regents of the University of
California), 1993 Series A, 5.500%, 6/01/14
5,000 California State Public Works Board, Lease Revenue Bonds, 11/04 at 102.00 Aaa 5,416,100
Department of Corrections, California State Prison at
Monterey County - Soledad II, Series 1994A, 6.875%, 11/01/14
(Pre-refunded to 11/01/04)
500 State Public Works Board of the State of California, Lease 12/08 at 101.00 Baa1 526,385
Revenue Refunding Bonds, California Community Colleges
Projects, 1998 Series A, 5.250%, 12/01/16
500 City of Contra Costa Water District, California, Water Revenue 10/07 at 100.00 AA 533,115
Bonds, Refunding Series 1997 H, 5.000%, 10/01/17
500 Contra Costa County, California, Refunding Certificates of 11/07 at 102.00 AAA 548,415
Participation, Merrithew Memorial Hospital Replacement
Project, Series 1997, 5.375%, 11/01/17 - MBIA Insured
1,000 City of Fresno, California, Health Facility Revenue Bonds, 12/03 at 102.00 AAA 1,026,840
Series 1993B (Holy Cross Health System Corporation),
5.625%, 12/01/15 - MBIA Insured
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 2,675,850
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 7.7%
3,000 Colorado Health Facilities Authority, Revenue Bonds, Catholic 9/12 at 100.00 AA 3,134,400
Health Initiatives, Series 2002A, 5.500%, 3/01/22
5,000 City and County of Denver, Colorado, Airport System Revenue 11/11 at 100.00 AAA 5,430,350
Refunding Bonds, Series 2001B, 5.625%, 11/15/17 (Alternative
Minimum Tax) - FGIC Insured
3,185 City and County of Denver, Colorado, Airport System Revenue No Opt. Call A 3,965,229
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
3,000 Denver Convention Center Hotel Authority, Colorado, Convention 12/13 at 100.00 AAA 3,063,390
Center Hotel Senior Revenue Bonds, Series 2003A,
5.000%, 12/01/23 - XLCA Insured
5,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 1,670,450
Bonds, 2000 Series B, 0.000%, 9/01/24 - MBIA Insured
5,000 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, 9/10 at 31.42 AAA 1,188,150
Series 2000A, 0.000%, 9/01/28 - MBIA Insured
1,100 University of Colorado Hospital Authority, Hospital Revenue 11/11 at 100.00 A3 1,122,572
Bonds, Series 2001A, 5.600%, 11/15/31
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.2%
500 District of Columbia, Hospital Revenue and Refunding Bonds 8/06 at 102.00 AAA 561,310
(Medlantic Healthcare Group, Inc. Issue), Series 1996A,
5.750%, 8/15/16 - MBIA Insured
17
Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued)
Portfolio of INVESTMENTS September 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.4%
$ 6,060 Jacksonville Electric Authority, Florida, St. John's River Power 10/03 at 100.00 AA $ 6,075,635
Park System Revenue Bonds, Issue Two, Series Nine
Refunding, 5.250%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.5%
1,100 State of Hawaii, Certificates of Participation, Kapolei State 11/08 at 101.00 AAA 1,174,943
Office Building, 1998 Series A, 5.000%, 5/01/17 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 17.3%
8,420 Chicago Metropolitan Housing Development Corporation 1/04 at 101.00 AA 8,517,251
(Illinois), Housing 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, Chicago O'Hare International Airport, No Opt. Call Ca 530,400
Special Facility Revenue Refunding Bonds, United Air Lines,
Inc. Project, Series 2001C, 6.300%, 5/01/16#
250 Illinois Development Finance Authority, Economic Development 8/08 at 100.00 Baa2 260,390
Revenue Bonds, Latin School of Chicago Project, Series 1998,
5.200%, 8/01/11
2,500 Illinois Educational Facilities Authority, Revenue Bonds, 12/03 at 102.00 BBB 2,541,525
Series 1993 (Columbia College), 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 100.00 N/R*** 2,784,870
1,140 6.875%, 12/01/17 12/04 at 100.00 BBB 1,165,445
3,000 Illinois Health Facilities Authority, Revenue Bonds, Rush- 11/03 at 102.00 AAA 3,073,200
Presbyterian-Saint Luke's Medical Center Obligated Group,
Series 1993, 5.250%, 11/15/20 - MBIA Insured
2,255 Illinois Health Facilities Authority, Revenue Bonds, 7/12 at 100.00 A- 2,436,866
Lake Forest Hospital, Series 2002A, 6.250%, 7/01/22
1,900 Illinois Housing Development Authority, Homeowner Mortgage 2/10 at 100.00 AA 2,036,572
Revenue Bonds, Series 2000-D3, 5.700%, 8/01/17
600 Illinois Educational Facilities Authority, Student Housing Revenue 5/12 at 101.00 Baa2 604,524
Bonds, Educational Advancement Foundation Fund,
University Center Project, Series 2002, 6.000%, 5/01/22
5,700 State of Illinois, Sales Tax Revenue Bonds, FIRST 6/13 at 100.00 AAA 5,896,821
Series 2002, 5.000%, 6/15/22
45 Metropolitan Pier and Exposition Authority (Illinois), McCormick 12/03 at 102.00 A1 45,977
Place Expansion Project Bonds, Series 1992A, 6.500%, 6/15/22
7,000 Metropolitan Pier and Exposition Authority, Illinois, McCormick 6/12 at 101.00 AAA 7,269,570
Place Expansion Project Refunding Revenue Bonds, Series 2002B,
5.000%, 6/15/21 - MBIA Insured
5,045 Sauk Village, Illinois, General Obligation Alternate Revenue 12/12 at 100.00 AA 5,076,027
Source Bonds, Series 2002A, Tax Increment,
5.000%, 6/01/22 - RAAI Insured
Sauk Village, Illinois, General Obligation Alternate Revenue
Source Bonds, Series 2002B, Tax Increment:
1,060 0.000%, 12/01/17 - RAAI Insured No Opt. Call AA 513,570
1,135 0.000%, 12/01/18 - RAAI Insured No Opt. Call AA 513,463
1,000 Yorkville United City, Illinois, General Obligation Debt 12/11 at 100.00 AA 1,010,320
Certificates, Series 2003, 5.000%, 12/15/21 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.6%
4,380 Indiana Municipal Power Agency, Power Supply System Revenue 1/12 at 100.00 AAA 4,569,128
Bonds, Series 2002A, 5.125%, 1/01/21 - AMBAC Insured
2,000 Indiana Housing Finance Authority, Single Family Mortgage 7/11 at 100.00 Aaa 2,054,940
Revenue Bonds, 2002 Series C-2, 5.250%, 7/01/23
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.4%
Tobacco Settlement Authority, Iowa, Tobacco Settlement
Asset-Backed Revenue Bonds, Series 2001B:
1,000 5.300%, 6/01/25 6/11 at 101.00 BBB 778,900
3,500 5.600%, 6/01/35 6/11 at 101.00 BBB 2,687,160
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.2%
$ 3,000 Louisiana Public Facilities Authority, Revenue Bonds, Tulane 7/12 at 100.00 AAA $ 3,075,690
University, Series 2002A, 5.125%, 7/01/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.8%
4,000 Massachusetts Health and Educational Facilities Authority, 11/03 at 102.00 AAA 4,097,360
Revenue Bonds, Cape Cod Health Systems, Inc. Issue,
Series A, 5.250%, 11/15/21 - CONNIE LEE/AMBAC Insured
3,000 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 3,102,510
Revenue Bonds, Berkshire Health System Issue, Series 2001E,
6.250%, 10/01/31
2,090 Massachusetts Water Resources Authority, General Revenue No Opt. Call AAA 2,356,224
Bonds, 1993 Series C, 5.250%, 12/01/15 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.0%
2,900 Michigan State Hospital Finance Authority, Revenue Bond, 12/12 at 100.00 AA- 2,956,550
Trinity Health Credit, Series 2002C Refunding, 5.375%, 12/01/30
2,000 Plymouth-Canton Community Schools, Counties of Wayne and 5/09 at 100.00 AAA 2,060,720
Washtenaw, State of Michigan, School Building and Site Bonds
(General Obligation-Unlimited Tax), Series 1999, 4.750%, 5/01/18
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 5.7%
500 Clark County, Nevada, General Obligation Limited Tax Las Vegas 7/06 at 101.00 AAA 547,260
Convention and Visitors Authority Bonds, Series 1996,
5.500%, 7/01/17 - MBIA Insured
13,250 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 13,863,078
Revenue Bonds, Las Vegas Monorail Project, 1st Tier
Series 2000, 5.375%, 1/01/40 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.0%
2,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Baa2 2,508,200
Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/23
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 5.1%
2,700 Dormitory Authority of the State of New York, Mount Sinai NYU 7/10 at 101.00 Ba1 2,740,635
Health Obligated Group Revenue Bonds, Series 2000A,
6.500%, 7/01/17
4,000 New York State Medical Care Facilities Finance Agency 2/05 at 102.00 AAA 4,388,360
New York Hospital FHA-Insured Mortgage Revenue Bonds,
Series 1994A, 6.750%, 8/15/14 (Pre-refunded to 2/15/05) -
AMBAC Insured
5,000 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 5,861,150
Center Bonds, Series E, 7.250%, 1/01/10
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.8%
1,500 The Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 AA 1,502,415
Health Care System Revenue Bonds, Carolinas Healthcare
System, Series 2001A, 5.000%, 1/15/31
5,500 North Carolina Eastern Municipal Power Agency, Power System 1/04 at 101.00 BBB 5,565,450
Revenue Bonds, Series 1993-D, 5.600%, 1/01/16
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.2%
2,800 County of Cuyahoga, Ohio, Hospital Revenue Bonds (Meridia 8/05 at 102.00 AAA 3,120,292
Health System), Series 1995, 6.250%, 8/15/14
(Pre-refunded to 8/15/05)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.2%
1,000 Dauphin County General Authority (Pennsylvania), Health System 2/09 at 101.00 AAA 1,057,490
Revenue Bonds, Series 1999 (Pinnacle Health System
Project), 5.125%, 8/15/17 - MBIA Insured
1,000 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101.00 AAA 1,085,180
Airport Revenue Bonds, Philadelphia Airport System Project,
Series 2001A, 5.500%, 7/01/17 (Alternative Minimum Tax) -
FGIC Insured
3,250 Philadelphia School District, Pennsylvania, General Obligation 2/12 at 100.00 AAA 3,440,027
Bonds, Series 2002A, 5.500%, 2/01/31 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.6%
5,000 Tobacco Settlement Financing Corporation of Rhode Island, 6/12 at 100.00 BBB 4,142,350
Asset-Backed Bonds, Series 2002A, 6.250%, 6/01/42
19
Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued)
Portfolio of INVESTMENTS September 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 6.4%
$ 4,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- $ 4,463,000
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/19
2,500 Lexington County Health Services District, South Carolina, 11/13 at 100.00 A 2,742,750
Hospital Revenue Bonds, Series 2003 Refunding and
Improvement, 6.000%, 11/01/18
8,240 South Carolina Public Service Authority, Revenue Bonds, 1/06 at 102.00 AAA 8,990,005
1996 Refunding Series A, 5.750%, 1/01/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 15.4%
3,275 Bexar County (Texas), Health Facilities Development Corporation, 8/04 at 102.00 AAA 3,507,034
Hospital Revenue Bonds (Baptist Memorial Hospital System
Project), Series 1994, 6.900%, 2/15/14 (Pre-refunded
to 8/15/04) - MBIA Insured
4,000 Brazos River Harbor Navigation District, Brazoria County, Texas, 5/12 at 101.00 A- 4,283,320
Environmental Facilities Revenue Bonds, Dow Chemical
Company Project, 2002 Series A-6, 6.250%, 5/15/33 (Alternative
Minimum Tax) (Mandatory put 5/15/17)
4,590 Cleveland Housing Corporation (Texas), Mortgage Revenue 1/04 at 100.00 AAA 4,595,967
Refunding Bonds, Series 1992-C (FHA-Insured Section 8),
7.375%, 7/01/24 - MBIA Insured
2,500 Harris County Health Facilities Development Corporation, Texas, 10/05 at 102.00 AAA 2,854,125
Hospital Revenue Bonds, Texas Children's Hospital, Series 1995,
5.500%, 10/01/16 - MBIA Insured
3,000 Harris County, Texas, Health Facilities Development Corporation, 11/13 at 100.00 AAA 3,031,920
Thermal Utility Revenue Bonds, TECO Project, Series 2003,
5.000%, 11/15/30 - MBIA Insured
2,000 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/12 at 100.00 AAA 2,142,160
Bonds, Series 2002A, 5.625%, 7/01/20 (Alternative Minimum
Tax) - FSA Insured
3,125 Katy Independent School District, Harris Fort Bend, and Waller 2/12 at 100.00 AAA 3,146,938
Counties, Texas, General Obligation Bonds, Series 2002A,
5.000%, 2/15/32
4,750 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 5,155,175
System Revenue Refunding Bonds, Series 2002A,
5.500%, 10/01/17 - RAAI Insured
8,900 Texas Turnpike Authority, Dallas North Tollway System Revenue 1/06 at 102.00 AAA 9,495,677
Bonds, Series 1995 (President George Bush Turnpike),
5.250%, 1/01/23 - FGIC Insured
1,000 Texas Water Development Board, State Revolving Fund, Senior 1/07 at 100.00 AAA 1,076,540
Lien Revenue Bonds, Series 1996B, 5.125%, 7/15/18
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 2.7%
3,000 Vermont Housing Finance Agency, Multifamily Housing Bonds, 2/09 at 100.00 AAA 3,158,310
Series 1999C, 5.800%, 8/15/16 - FSA Insured
3,600 Vermont Industrial Development Authority, Industrial Development 3/04 at 101.00 A 3,641,832
Revenue Refunding Bonds, Stanley Works Inc. Project,
Series 1992, 6.750%, 9/01/10
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.6%
2,000 Washington State Health Care Facilities Authority, Revenue 12/07 at 101.00 AAA 2,107,740
Bonds, Catholic Health Initiatives, Series 1997A,
5.125%, 12/01/17 - MBIA Insured
6,715 Washington State Health Care Facilities Authority, Revenue 10/11 at 100.00 AAA 7,117,092
Bonds, Providence Health System, Series 2001A,
5.125%, 10/01/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.0%
4,000 Wisconsin Housing and Economic Development Authority, 3/12 at 100.00 AA 4,137,600
Home Ownership Revenue Bonds, 2002 Series G,
4.850%, 9/01/17
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A 1,050,060
Bonds, Wheaton Franciscan Services, Series 2003A,
5.500%, 8/15/18
------------------------------------------------------------------------------------------------------------------------------------
$ 250,145 Total Long-Term Investments (cost$ 242,379,119) - 98.3% 250,200,210
=============-----------------------------------------------------------------------------------------------------------------------
20
PRINCIPAL MARKET
AMOUNT (000) DESCRIPTION RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.4%
$ 1,000 Multnomah County, Oregon, Higher Education Revenue Bonds, VMIG-1 $ 1,000,000
Series 1999, Concordia University Project, Variable Rate
Demand Bonds, 1.250%, 12/01/29+
------------------------------------------------------------------------------------------------------------------------------------
$ 1,000 Total Short-Term Investments (cost $1,000,000) 1,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $243,379,119) - 98.7% 251,200,210
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 3,294,926
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $254,495,136
====================================================================================================================
* 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. Such securities are normally
considered to be equivalent to AAA rated securities.
# On December 9, 2002, UAL Corporation, the holding
company of United Air Lines, Inc. filed for federal
bankruptcy protection. The Adviser determined that it
was likely United would not remain current on their
interest payment obligations with respect to these
bonds and thus has stopped accruing interest.
N/R Investment is not rated.
+ 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.
21
Nuveen Select Tax-Free Income Portfolio 3 (NXR)
Portfolio of
INVESTMENTS September 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.3%
$ 500 Marshall County Health Care Authority, Alabama, Revenue Bonds, 1/12 at 101.00 A- $ 541,415
Series 2002A, 6.250%, 1/01/22
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 6.8%
2,105 Azusa Unified School District, Los Angeles County, California, 7/12 at 100.00 AAA 2,261,317
General Obligation Bonds, Series 2002, 5.375%, 7/01/21 -
FSA Insured
3,350 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 A3 3,821,144
Bonds, Series 2002A, 6.000%, 5/01/14
3,000 California State Public Works Board, Lease Revenue Bonds, 11/04 at 102.00 Aaa 3,249,660
Department of Corrections, California State Prison at Monterey
County - Soledad II, Series 1994A, 6.875%, 11/01/14
(Pre-refunded to 11/01/04)
500 City of Fresno, California, Health Facility Revenue Refunding 12/03 at 102.00 AAA 513,360
Bonds, Series 1993A (Holy Cross Health System Corporation),
5.625%, 12/01/18 - MBIA Insured
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 2,675,850
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.7%
4,000 Colorado Health Facilities Authority, Revenue Bonds, Catholic 9/12 at 100.00 AA 4,179,200
Health Initiatives, Series 2002A, 5.500%, 3/01/22
2,700 City and County of Denver, Colorado, Airport System Revenue No Opt. Call A 3,361,419
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
3,000 Denver Convention Center Hotel Authority, Colorado, Convention 12/13 at 100.00 AAA 3,056,100
Center Hotel Senior Revenue Bonds, Series 2003A,
5.000%, 12/01/24 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.1%
250 State of Connecticut, Health and Educational Facilities 1/04 at 101.00 AAA 253,657
Authority, Revenue Bonds, Bridgeport Hospital Issue, Series A,
6.625%, 7/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.9%
235 District of Columbia, Washington D.C. General Obligation No Opt. Call AAA 282,653
Refunding Bonds, Series 1994A-1, 6.500%, 6/01/10 -
MBIA Insured
1,305 District of Columbia, Washington D.C. General Obligation Bonds, 12/03 at 102.00 AAA 1,355,921
Series 1993E, 6.000%, 6/01/13 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.0%
4,000 JEA, Florida, Electric System Revenue Bonds, Series 2002D 10/07 at 100.00 AA- 3,915,800
Subordinate Lien, 4.625%, 10/01/22
5,020 JEA, Florida, St. John's River Power Park System, Florida, 10/11 at 100.00 AA 5,292,285
Revenue Refunding Bonds, Series 2002-17 Issue 2,
5.000%, 10/01/18
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 21.7%
3,000 Village of Bryant, Illinois, Pollution Control Revenue Refunding 2/04 at 100.00 A2 2,946,270
Bonds (Central Illinois Light Company Project) Series 1992,
6.500%, 2/01/18
2,475 Chicago Metropolitan Housing Development Corporation 1/04 at 101.00 AA 2,503,091
(Illinois), Housing 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 12/03 at 101.00 AAA 2,576,061
(FHA-Insured Mortgage Loan-Lakeview Towers Project),
6.600%, 12/01/20
700 City of Chicago, Illinois, Chicago O'Hare International Airport, No Opt. Call Ca 154,700
Special Facility Revenue Refunding Bonds, United Air
Lines, Inc. Project, Series 2001C, 6.300%, 5/01/16#
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 1,930 Illinois Development Finance Authority, Revenue Bonds, 5/11 at 101.00 BBB+ $ 2,061,645
Midwestern University, Series 2001B, 5.750%, 5/15/16
1,500 Illinois Health Facilities Authority, Revenue Bonds, No Opt. Call N/R*** 1,803,330
Series 1992C (Evangelical Hospitals Corporation),
6.250%, 4/15/22
4,000 Illinois Health Facilities Authority, Revenue Bonds, 9/06 at 100.00 AAA 4,589,800
Series 1992B (Franciscan Sisters Health Care Corporation
Project), 6.625%, 9/01/13 (Pre-refunded to 9/01/06) -
MBIA Insured
4,470 Illinois Health Facilities Authority, Revenue Bonds, University 8/11 at 103.00 Aa1 4,898,986
of Chicago Project, Series 1985A Remarketed,
5.500%, 8/01/20
2,225 Illinois Health Facilities Authority, Revenue Bonds, Elmhurst 1/13 at 100.00 A2 2,455,688
Memorial Healthcare, Series 2002 Refunding,
6.250%, 1/01/17
620 Illinois Housing Development Authority, Homeowner 2/10 at 100.00 AA 664,566
Mortgage Revenue Bonds, Series 2000-D3, 5.700%, 8/01/17
5,700 State of Illinois, Sales Tax Revenue Bonds, 6/13 at 100.00 AAA 5,896,821
FIRST Series 2002, 5.000%, 6/15/22
2,000 State of Illinois, Build Illinois Bonds, Sales Tax Revenue Bonds, 6/07 at 101.00 AAA 2,222,120
Series X, 5.600%, 6/15/17
6,000 Metropolitan Pier and Exposition Authority, Illinois, McCormick 6/12 at 101.00 AAA 6,231,060
Place Expansion Project Refunding Revenue Bonds,
Series 2002B, 5.000%, 6/15/21 - MBIA Insured
1,000 Yorkville United City, Illinois, General Obligation Debt 12/11 at 100.00 AA 1,005,610
Certificates, Series 2003, 5.000%, 12/15/22 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.5%
3,500 Indiana Health Facility Financing Authority, Hospital Revenue 9/11 at 100.00 A+ 3,565,660
Bonds, Series 2001, The Methodist Hospital Inc,
5.375%, 9/15/22
2,000 The Indianapolis, Indiana, Local Public Improvement Bond Bank, 7/12 at 100.00 AAA 2,068,600
Series 2002A, Waterworks Project, 5.250%, 7/01/33 -
MBIA Insured
2,725 Warrick County, Indiana, Adjustable Rate Environmental 11/03 at 102.00 A- 2,771,516
Improvement Revenue Bonds 1993 Series B (Southern Indiana
Gas and Electric Company Project), 6.000%, 5/01/23
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 2.7%
Tobacco Settlement Authority, Iowa, Tobacco Settlement
Asset-Backed Revenue Bonds, Series 2001B:
3,500 5.300%, 6/01/25 6/11 at 101.00 BBB 2,726,150
2,850 5.600%, 6/01/35 6/11 at 101.00 BBB 2,188,116
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.3%
500 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA- 558,920
Revenue Bonds, Partners HealthCare System Issue,
Series C, 6.000%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 9.4%
4,000 Michigan State Housing Development Authority, Single Family 6/06 at 102.00 AA+ 4,210,880
Mortgage Revenue Bonds, 1996 Series C, 5.950%, 12/01/17
235 Michigan State Hospital Finance Authority, Revenue and 2/04 at 102.00 Ba3 174,163
Refunding Bonds, Detroit Medical Center Obligated Group,
Series 1993A, 6.500%, 8/15/18
2,900 Michigan State Hospital Finance Authority, Revenue Bonds, 12/12 at 100.00 AA- 2,956,550
Trinity Health Credit, Series 2002C Refunding,
5.375%, 12/01/30
8,240 Michigan State Housing Development Authority, Limited 3/04 at 102.00 AAA 8,466,682
Obligation Multifamily Housing Revenue Bonds, Greenwood
Villa Project, Series 1992, 6.625%, 9/15/17 - FSA Insured
1,600 Plymouth-Canton Community Schools, Counties of Wayne 5/09 at 100.00 AAA 1,648,576
and Washtenaw, State of Michigan, School Building and
Site Bonds (General Obligation-Unlimited Tax), Series 1999,
4.750%, 5/01/18
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.9%
3,500 Nebraska Public Power District, General Revenue Bonds, 1/13 at 100.00 AAA 3,537,205
Series 2002B, 5.000%, 1/01/33 - AMBAC Insured
23
Nuveen Select Tax-Free Income Portfolio 3 (NXR) (continued)
Portfolio of INVESTMENTS September 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.9%
$ 4,000 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA $ 4,185,080
Revenue Bonds, Las Vegas Monorail Project, 1st Tier
Series 2000, 5.375%, 1/01/40 - AMBAC Insured
4,510 Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 6/12 at 100.00 AAA 4,886,044
5.500%, 6/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.8%
1,510 New Hampshire Housing Finance Authority, Single Family 5/11 at 100.00 Aa2 1,568,497
Mortgage Acquisition Bonds, Series 2001A,
5.600%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 3.6%
2,335 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 A- 2,407,759
Revenue Bonds, Series 2001A, 5.375%, 9/01/21
35 The City of New York, New York, General Obligation Bonds, 2/04 at 100.00 A 35,408
Fiscal 1992 Series B, 7.000%, 2/01/18
2,130 Dormitory Authority of the State of New York, City University No Opt. Call A3 2,587,119
System Consolidated, Second General Resolution Revenue
Bonds, Series 1990C, 7.500%, 7/01/10
1,485 New York State Medical Care Facilities Finance Agency, 8/04 at 100.00 AAA 1,552,464
Hospital and Nursing Home FHA-Insured Mortgage Revenue
Bonds, 1992 Series C, 6.250%, 8/15/12 (Pre-refunded
to 8/15/04)
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 4.3%
5,000 North Carolina Municipal Power Agency Number 1, Catawba 1/13 at 100.00 AAA 5,464,900
Electric Revenue Bonds, Series 2003A, 5.250%, 1/01/18 -
MBIA Insured
2,345 Piedmont Triad Airport Authority, North Carolina, Airport 7/11 at 101.00 AAA 2,568,174
Revenue Bonds, Series 2001A, 5.250%, 7/01/16 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.5%
2,435 Dauphin County, Pennsylvania, Industrial Development Authority, No Opt. Call A- 3,024,660
Water Development Refunding Revenue Bonds, Series 1992B
(Dauphin Consolidates Water Supply Company),
6.700%, 6/01/17
500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 BBB+ 497,765
Bonds, Widner University, Series 2003, 5.250%, 7/15/24
(WI, settling 10/01/03)
1,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,085,180
Pennsylvania, Airport Revenue Bonds, Philadelphia Airport
System Project, Series 2001A, 5.500%, 7/01/17 (Alternative
Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.3%
1,500 Lexington County Health Services District, South Carolina, 11/13 at 100.00 A 1,645,650
Hospital Revenue Bonds, Series 2003 Refunding and
Improvement, 6.000%, 11/01/18
2,500 South Carolina Jobs Economic Development Authority, Revenue 11/12 at 100.00 A- 2,535,450
Bonds, Bon Secours Health System Inc, Series 2002A,
5.625%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.1%
2,000 Knox County Health, Educational, and Housing Facilities Board, 4/12 at 101.00 Baa2 2,057,480
Tennessee, Hospital Facilities Revenue Bonds, Baptist
Health System of East Tennessee, Series 2002,
6.375%, 4/15/22
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 14.0%
3,755 Grand Prairie Industrial Development Authority, Texas, 12/03 at 101.00 A 3,845,871
Industrial Development Revenue Refunding Bonds,
Series 1992 (Baxter International Inc. Project), 6.550%, 12/01/12
2,500 Harris County Health Facilities Development Corporation, 10/04 at 101.00 AAA 2,657,850
Texas, Hospital Revenue Bonds, Hermann Hospital,
Series 1994, 6.375%, 10/01/17 (Pre-refunded to 10/01/04) -
MBIA Insured
2,500 Harris County, Texas, Health Facilities Development 11/13 at 100.00 AAA 2,526,600
Corporation, Thermal Utility Revenue Bonds, TECO Project,
Series 2003, 5.000%, 11/15/30 - MBIA Insured
3,000 City of Houston, Texas, Airport System Subordinate Lien 7/12 at 100.00 AAA 3,316,530
Revenue Bonds, Series 2002B, 5.500%, 7/01/18
3,125 Katy Independent School District, Harris, Fort Bend, and Waller 2/12 at 100.00 AAA 3,146,938
Counties, Texas, General Obligation Bonds, Series 2002A,
5.000%, 2/15/32
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 5,000 North Central Texas Health Facilities Development Corporation, 5/06 at 102.00 AA- $ 5,172,650
Hospital Revenue Refunding Bonds, Baylor Health Care System
Project, Series 1995, 5.250%, 5/15/16
4,750 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 5,155,175
System Revenue Refunding Bonds, Series 2002A,
5.500%, 10/01/17 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.9%
1,710 Intermountain Power Agency (Utah), Power Revenue Refunding 7/06 at 102.00 A+ 1,739,874
Bonds, 1996 Series D, 5.000%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 2.1%
3,880 State of Washington, General Obligation Bonds, Series 1993A, 10/03 at 100.00 AA+ 3,880,737
4.500%, 10/01/18
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.4%
2,500 Berkeley County Building Commission (West Virginia), Hospital 11/03 at 101.00 BBB- 2,504,024
Revenue Bonds (City Hospital Project), Series 1992,
6.500%, 11/01/09
------------------------------------------------------------------------------------------------------------------------------------
$ 172,690 Total Long-Term Investments (cost $174,053,115) - 97.2% 179,690,426
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.5%
1,000 Alachua County Health Facilities Authority, Florida, Continuing VMIG-1 1,000,000
Care Retirement Community Bonds, Oak Hammock Project,
Variable Rate Demand Obligations, Series 2002A,
1.200%, 10/01/32+
------------------------------------------------------------------------------------------------------------------------------------
$ 1,000 Total Short-Term Investments (cost $1,000,000) 1,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $175,053,115) - 97.7% 180,690,426
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 4,243,569
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $184,933,995
====================================================================================================================
* 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. Such securities are normally
considered to be equivalent to AAA rated securities.
# On December 9, 2002, UAL Corporation, the holding
company of United Air Lines, Inc. filed for federal
bankruptcy protection. The Adviser determined that it
was likely United would not remain current on their
interest payment obligations with respect to these
bonds and thus has stopped accruing interest.
N/R Investment is not rated.
(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.
25
Nuveen California Select Tax-Free Income Portfolio (NXC)
Portfolio of
INVESTMENTS September 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.0%
$ 2,000 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 BBB $ 1,837,380
Settlement Asset-Backed Revenue Bonds, Fresno County
Tobacco Funding Corporation, Series 2002, 5.625%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 14.3%
1,410 California Educational Facilities Authority, Refunding Revenue 10/03 at 100.00 AAA 1,415,612
Bonds, Series 1992 (Loyola Marymount University),
6.000%, 10/01/14 - MBIA Insured
1,000 California Educational Facilities Authority, Revenue Bonds, 12/09 at 101.00 AAA 1,023,840
Stanford University, Series 1999P, 5.000%, 12/01/23
750 California Educational Facilities Authority, Revenue Bonds, 8/09 at 100.00 A1 778,523
Pepperdine University, Series 2002A, 5.500%, 8/01/32
2,600 California Educational Facilities Authority, Revenue Bonds, 11/11 at 100.00 A2 2,706,704
University of the Pacific, Series 2002, 5.250%, 11/01/21
1,000 California Educational Facilities Authority, Revenue Bonds, 10/12 at 100.00 A2 1,042,150
University of San Diego, Series 2002A, 5.500%, 10/01/32
3,000 California Infrastructure and Economic Development Bank, 10/11 at 101.00 A- 3,221,220
Revenue Bonds, Series 2001, The J. David Gladstone
Institutes Project, 5.500%, 10/01/19
2,000 California State Public Works Board, Lease Revenue Bonds, 10/12 at 100.00 AAA 2,056,200
University of California System, Series 2002A,
5.000%, 10/01/22
750 California Statewide Community Development Authority, 8/12 at 100.00 A 781,088
Student Housing Revenue Bonds, EAH - Irvine East Campus
Apartments, LLC Project, Series 2002A, 5.500%, 8/01/22 -
ACA Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 14.6%
2,500 California Health Facilities Financing Authority, Insured Hospital 10/03 at 101.00 AAA 2,588,350
Revenue Bonds (Scripps Memorial Hospitals), Series 1992A,
6.400%, 10/01/12 - MBIA Insured
2,000 California Infrastructure and Economic Development Bank, 8/11 at 102.00 A 2,042,560
Revenue Bonds, Kaiser Hospital Assistance I - LLC,
Series 2001A, 5.550%, 8/01/31
1,880 California Statewide Communities Development Authority, 6/07 at 101.00 AAA 2,075,520
Revenue Bonds (Los Angeles Orthopaedic Hospital Foundation
and Orthopaedic Hospital) Series 2000, 5.500%, 6/01/17 -
AMBAC Insured
1,500 California Statewide Communities Development Authority, 11/09 at 102.00 BBB 1,522,020
Insured Mortgage Hospital Revenue Bonds, Mission Community
Hospital, Series 2001, 5.375%, 11/01/26
4,000 California Statewide Community Developmemt Authority, 6/13 at 100.00 AAA 4,325,760
Hospital Revenue Bonds, Monterey Peninsula Hospital,
Series 2003B, 5.250%, 6/01/18 - FSA Insured
790 Central California Joint Powers Health Financing Authority, 2/04 at 100.00 Baa2 750,034
Certificates of Participation, Community Hospitals of Central
California, Series 1993, 5.000%, 2/01/23
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.7%
1,500 ABAG Finance Authority for Nonprofit Corporations, California, 11/12 at 100.00 BBB 1,531,710
Insured Senior Living Revenue Bonds, Odd Fellows Home of
California, Series 2003A, 5.200%, 11/15/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 20.2%
2,000 Antelope Valley Union High School District, Los Angeles County, 8/12 at 101.00 AAA 2,033,300
California, General Obligation Bonds, Series 2002A,
5.000%, 2/01/27 - MBIA Insured
1,500 Beverly Hills Unified School District, Los Angeles County, 8/12 at 100.00 AA 1,521,840
California, General Obligation Bonds, Series 2002A,
5.000%, 8/01/26
1,450 State of California, General Obligation Bonds, Series 2003, 8/13 at 100.00 A3 1,506,927
5.250%, 2/01/21
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Golden West Schools Financing Authority, California, Revenue
Bonds, 1999 Series A (School District General Obligation
Refunding Program):
$ 4,650 0.000%, 8/01/16 - MBIA Insured No Opt. Call AAA $ 2,601,861
1,750 0.000%, 2/01/17 - MBIA Insured No Opt. Call AAA 944,895
2,375 0.000%, 8/01/17 - MBIA Insured No Opt. Call AAA 1,253,074
2,345 0.000%, 2/01/18 - MBIA Insured No Opt. Call AAA 1,192,175
Mountain View-Los Altos Union High School District, County of
Santa Clara, California, General Obligation Capital Appreciation
Bonds, 1995 Series C:
1,015 0.000%, 5/01/17 - MBIA Insured No Opt. Call AAA 543,908
1,080 0.000%, 5/01/18 - MBIA Insured No Opt. Call AAA 544,946
2,000 North Orange County Community College District, California, 8/12 at 101.00 AAA 2,069,800
General Obligation Bonds, Series 2002A, 5.000%, 8/01/22 -
MBIA Insured
4,000 City of Oakland, Alameda County, California, General Obligation 12/03 at 101.00 AAA 4,055,400
Bonds, Series 1992, 6.000%, 6/15/17 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 5.9%
3,500 State Public Works Board of the State of California, Lease No Opt. Call AAA 4,348,120
Revenue Bonds, Department of Corrections, 1991 Series A,
Calipatria State Prison in Imperial County, 6.500%, 9/01/17 -
MBIA Insured
1,000 Santa Clara County Board of Education, California, Certificates 4/12 at 101.00 AAA 1,015,500
of Participation, Series 2002, 5.000%, 4/01/25 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 15.2%
1,150 Foothill-Eastern Transportation Corridor Agency, California, 1/10 at 100.00 BBB- 1,052,561
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
5,000 Los Angeles Harbors Department, California, Revenue Refunding 8/11 at 100.00 AAA 5,407,350
Bonds, Series 2001B, 5.500%, 8/01/17 (Alternative Minimum
Tax) - AMBAC Insured
3,675 Palm Springs Financing Authority, California, Palm Springs 1/04 at 100.00 AAA 3,717,299
Regional Airport, Revenue Bonds, Series 1992,
6.000%, 1/01/12 (Alternative Minimum Tax) -
MBIA Insured
1,000 Port of Oakland, California, Revenue Bonds, Series 2002M, 11/12 at 100.00 AAA 1,074,300
5.250%, 11/01/20 - FGIC Insured
2,500 Port of Oakland, California, Revenue Bonds, Series 2002N, 11/12 at 100.00 AAA 2,544,650
5.000%, 11/01/22 (Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 4.7%
4,000 San Diego County, California, Certificates of Participation, 8/04 at 102.00 AAA 4,271,280
Inmate Reception Center and Cooling Plant Financing,
6.750%, 8/01/14 (Pre-refunded to 8/01/04) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.2%
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
2,000 5.750%, 5/01/17 5/12 at 101.00 A3 2,217,880
2,000 5.125%, 5/01/19 5/12 at 101.00 A3 2,079,780
2,550 M-S-R Public Power Agency (California), San Juan Project Revenue 1/04 at 100.00 AAA 2,579,884
Bonds, Series 1991E, 6.000%, 7/01/22 - MBIA Insured
1,225 Turlock Irrigation District, California, Revenue Refunding Bonds, No Opt. Call AAA 1,462,160
Series 1992A, 6.250%, 1/01/12 - MBIA Insured
27
Nuveen California Select Tax-Free Income Portfolio (NXC) (continued)
Portfolio of INVESTMENTS September 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.5%
$ 3,000 Contra Costa Water District (Contra Costa County, California), 10/04 at 102.00 AAA $ 3,023,670
Water Revenue Bonds, Series G, 5.000%, 10/01/24 -
MBIA Insured
2,800 Los Angeles, California, Wastewater System Revenue Bonds, 6/08 at 101.00 AAA 2,856,280
Series 1998A, 5.000%, 6/01/23 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 88,245 Total Long-Term Investments (cost $81,984,291) - 94.3% 85,617,511
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.7% 5,208,115
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $90,825,626
====================================================================================================================
* 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.
28
Nuveen New York Select Tax-Free Income Portfolio (NXN)
Portfolio of
INVESTMENTS September 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.9%
$ 1,235 TSASC Inc, New York, Tobacco Asset-Backed Bonds, 7/12 at 100.00 A2 $ 1,097,051
Series 2002-1, 5.500%, 7/15/24
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 13.0%
1,700 Amherst Industrial Development Agency, New York, Revenue 8/12 at 101.00 AAA 1,764,804
Bonds, UBF Faculty-Student Housing Corporation, University
of Buffalo Creekside Project, Series 2002A, 5.000%, 8/01/22 -
AMBAC Insured
1,000 New York City Industrial Development Agency, New York, Civic 11/04 at 102.00 AAA 1,075,660
Facility Revenue Bonds, USTA National Tennis Center
Incorporated Project, Series 1994, 6.375%, 11/15/14 -
FSA Insured
570 Dormitory Authority of the State of New York, City University No Opt. Call AAA 693,428
System Consolidated, Second General Resolution Revenue
Bonds, Series 1990C, 7.500%, 7/01/10 - FGIC Insured
1,425 Dormitory Authority of the State of New York, Rochester 7/07 at 101.00 AAA 1,517,112
Institute of Technology, Insured Revenue Bonds, Series 1997,
5.250%, 7/01/22 - MBIA Insured
1,430 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AA- 1,445,844
Upstate Community Colleges, 2002 Series A, 5.000%, 7/01/23
785 Dormitory Authority of the State of New York, Insured Revenue 7/12 at 100.00 AAA 809,359
Bonds, Iona College, Series 2002, 5.000%, 7/01/22 -
XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 9.0%
500 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 AAA 531,740
Health System Revenue Bonds, Series 2003A, 5.250%, 2/15/21 -
AMBAC Insured
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 511,125
Winthrop-South Nassau University Hospital Association,
Series 2003A, 5.500%, 7/01/32
670 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 696,432
Memorial Sloan Kettering Cancer Center, 2003 Series 1,
5.000%, 7/01/21 - MBIA Insured
250 Dormitory Authority of the State of New York, Revenue Bonds, 5/13 at 100.00 A3 254,203
North Shore Long Island Jewish Group, Series 2003,
5.375%, 5/01/23
1,680 Dormitory Authority of the State of New York, Winthrop South 7/11 at 101.00 AAA 1,828,126
Nassau University Health System Obligated Group,
Series 2001A, Winthrop University Hospital Association
Revenue Bonds, 5.250%, 7/01/17 - AMBAC Insured
1,195 Dormitory Authority of the State of New York, Winthrop South 7/11 at 101.00 AAA 1,300,363
Nassau University Health System Obligation Group,
Series 2001B, South Nassau Communities Hospital
Revenue Bonds, 5.250%, 7/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 8.2%
1,000 East Rochester Housing Authority, New York, Revenue Bonds, 12/12 at 103.00 AAA 1,049,320
GNMA/FHA Secured Revenue Bonds, St. Mary's Residence
Project, Series 2002A, 5.375%, 12/20/22
1,300 New Hartford Housing Development Corporation, New York, 1/04 at 100.00 AAA 1,301,833
Mortgage Revenue Refunding Bonds, Series 1992-A (Village
Point Project, FHA-Insured Mortgage Loan Section 8
Assisted Project), 7.375%, 1/01/24 - MBIA Insured
1,000 New Hartford-Sunset Woods Funding Corporation, New York, 8/12 at 101.00 AAA 1,053,650
FHA-Insured Mortgage Revenue Bonds, Sunset Woods
Apartments II Project, Series 2002, 5.350%, 2/01/20
1,245 New York State Housing Finance Agency, FHA-Insured Multifamily 2/04 at 101.00 AAA 1,259,293
Housing Mortgage Revenue Bonds, Series 1992C,
6.450%, 8/15/14 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.1%
2,500 State of New York Mortgage Agency, Mortgage Revenue Bonds, 4/11 at 100.00 Aaa 2,541,125
Thirty First Series A, 5.300%, 10/01/31 (Alternative
Minimum Tax)
2,000 State of New York Mortgage Agency, Homeowner Mortgage 10/11 at 100.00 Aa1 2,066,580
Revenue Bonds, Series 101, 5.000%, 10/01/18
(Alternative Minimum Tax)
29
Nuveen New York Select Tax-Free Income Portfolio (NXN) (continued)
Portfolio of INVESTMENTS September 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 9.1%
$ 2,000 East Rochester Housing Authority, New York, FHA-Insured 8/12 at 101.00 AAA $ 2,079,720
Mortgage Revenue Refunding Bonds, Jewish Home of
Rochester, Series 2002, 4.625%, 2/15/17
1,000 New York City Industrial Development Agency, New York, 11/12 at 101.00 AA+ 1,001,210
GNMA Collateralized Mortgage Revenue Bonds, Eger Harbor
House Inc Project, Series 2002A, 4.950%, 11/20/32
2,000 Dormitory Authority of the State of New York, Norwegian 8/11 at 101.00 AAA 2,048,140
Christian Home and Health Center, FHA-Insured Mortgage
Nursing Home Revenue Bonds, Series 2001, 5.200%, 8/01/36 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 5.1%
Town of Clarkstown Rickland County, New York, Various Purposes
Serial Bonds, Series 1992:
505 5.600%, 6/15/10 - AMBAC Insured No Opt. Call AAA 586,184
525 5.600%, 6/15/11 - AMBAC Insured No Opt. Call AAA 607,761
525 5.600%, 6/15/12 - AMBAC Insured No Opt. Call AAA 612,476
1,000 West Islip Union Free School District, Suffolk County, New York, 10/10 at 100.00 Aaa 1,075,400
General Obligation Bonds, Series 2001, 5.000%, 10/01/17 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 7.4%
500 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA 506,865
Contract Refunding Bonds, Series 2002A, 5.000%, 7/01/30 -
AMBAC Insured
1,000 Nassau County Interim Finance Authority, New York, Sales 11/06 at 101.00 AAA 1,051,870
Tax Secured Revenue Bonds, Series 2001-A2, 5.125%, 11/15/21 -
AMBAC Insured
670 New York City Transitional Finance Authority, Future 2/13 at 100.00 AA+ 687,809
Tax Secured Bonds, Fiscal 2003 Series E, 5.000%, 2/01/23
50 New York State Thruway Authority, Highway and Bridge Trust 4/05 at 102.00 AAA 53,261
Fund Bonds, Series 1995A, 5.125%, 4/01/15 - MBIA Insured
750 New York State Thruway Authority, Highway and Bridge Trust 4/13 at 100.00 AAA 792,810
Fund Bonds, Series 2003A, Second General, 5.250%, 4/01/23 -
MBIA Insured
1,000 Tobacco Settlement Financing Corporation of New York State, 6/13 at 100.00 AAA 1,069,140
Asset-Backed Bonds, Series 2003-A1, 5.250%, 6/01/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.7%
500 Metropolitan Transportation Authority, New York, Transportation No Opt. Call AAA 557,580
Revenue Bonds, Series 2003A, 5.000%, 11/15/15 -
FGIC Insured
2,500 The Port Authority of New York and New Jersey, Consolidated 1/05 at 101.00 AAA 2,671,350
Bonds, Ninety-Seventh Series, 6.500%, 7/15/19 (Alternative
Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 10.9%
1,420 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 1,810,188
Lease Revenue Bonds (Suffolk County Issue), Series 1986,
7.375%, 7/01/16
1,865 New York State Medical Care Facilities Finance Agency, Hospital 8/04 at 100.00 AAA 1,949,727
and Nursing Home FHA-Insured Mortgage Revenue Bonds,
1992 Series C, 6.250%, 8/15/12 (Pre-refunded to 8/15/04) -
MBIA Insured
1,500 New York State Medical Care Facilities Finance Agency 2/05 at 102.00 AAA 1,645,635
New York Hospital FHA-Insured Mortgage Revenue Bonds,
Series 1994A, 6.750%, 8/15/14 (Pre-refunded to 2/15/05) -
AMBAC Insured
150 New York State Thruway Authority, Highway and Bridge Trust 4/05 at 102.00 AAA 162,032
Fund Bonds, Series 1995B, 5.125%, 4/01/15 - MBIA Insured
485 Suffolk County Water Authority (New York), Waterworks Revenue No Opt. Call AAA 589,120
Bonds, Series 1986-V, 6.750%, 6/01/12
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.6%
2,000 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 2,084,540
Revenue Bonds, Series 1998A, 5.125%, 12/01/22 - FSA Insured
1,000 Long Island Power Authority, New York, Electric System General 9/13 at 100.00 AAA 1,082,460
Revenue Bonds, Series 2003C, 5.000%, 9/01/16 - CIFG Insured
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 11.9%
$ 2,500 New York City Municipal Water Finance Authority, Water and 6/11 at 101.00 AA $ 2,547,300
Sewer System Revenue Bonds, Fiscal 2001 Series C,
5.125%, 6/15/33
New York State Environmental Facilities Corporation, State Clean
Water and Drinking Water Revolving Funds Revenue Bonds, New York
City Municipal Water Finance Authority Loan, Series 2002B:
2,000 5.250%, 6/15/19 6/12 at 100.00 AAA 2,172,220
2,000 5.000%, 6/15/27 6/12 at 100.00 AAA 2,035,900
------------------------------------------------------------------------------------------------------------------------------------
$ 51,430 Total Long-Term Investments (cost $51,657,622) - 95.9% 54,277,746
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.1% 2,335,760
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $56,613,506
====================================================================================================================
* 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.
31
Statement of
ASSETS AND LIABILITIES September 30, 2003 (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, at market value
(cost $224,520,006, $243,379,119, $175,053,115,
$81,984,291 and $51,657,622, respectively) $238,101,647 $251,200,210 $180,690,426 $85,617,511 $54,277,746
Cash 1,275,444 -- -- 4,001,318 492,770
Receivables:
Interest 4,059,234 4,180,083 3,016,025 1,260,416 754,266
Investments sold 247,942 -- 1,996,346 -- 1,124,750
Other assets 72,601 76,679 56,703 29,728 20,112
------------------------------------------------------------------------------------------------------------------------------------
Total assets 243,756,868 255,456,972 185,759,500 90,908,973 56,669,644
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 737,024 160,682 -- --
Payable for investments purchased 489,430 -- 489,430 -- --
Accrued expenses:
Management fees 47,912 60,326 44,201 22,019 13,723
Other 156,551 164,486 131,192 61,328 42,415
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 693,893 961,836 825,505 83,347 56,138
------------------------------------------------------------------------------------------------------------------------------------
Net assets $243,062,975 $254,495,136 $184,933,995 $90,825,626 $56,613,506
====================================================================================================================================
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) $ 14.84 $ 14.45 $ 14.27 $ 14.52 $ 14.49
====================================================================================================================================
NET ASSETS CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 163,781 $ 176,071 $ 129,641 $ 62,571 $ 39,071
Paid-in surplus 227,635,042 245,690,698 178,372,582 87,121,713 53,605,750
Undistributed (Over-distribution of)
net investment income 326,309 (163,046) (73,600) (104,774) 26,457
Accumulated net realized gain from investments 1,356,202 970,322 868,061 112,896 322,104
Net unrealized appreciation of investments 13,581,641 7,821,091 5,637,311 3,633,220 2,620,124
------------------------------------------------------------------------------------------------------------------------------------
Net assets $243,062,975 $254,495,136 $184,933,995 $90,825,626 $56,613,506
====================================================================================================================================
See accompanying notes to financial statements.
32
Statement of
OPERATIONS Six Months Ended September 30, 2003 (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)
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $6,362,711 $6,725,278 $4,843,739 $2,286,500 $1,455,663
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 295,844 372,523 273,245 136,214 84,986
Shareholders' servicing agent fees and expenses 28,660 27,268 20,569 7,691 5,565
Custodian's fees and expenses 28,755 30,667 18,671 12,511 10,939
Trustees' fees and expenses 7,891 8,334 6,230 4,906 1,467
Professional fees 9,280 10,144 8,285 5,196 4,159
Shareholders' reports - printing and mailing expenses 24,418 24,109 13,424 6,360 7,523
Stock exchange listing fees 7,773 7,773 7,774 5,552 5,552
Investor relations expense 13,340 14,038 10,275 4,564 3,012
Other expenses 4,191 4,232 3,472 2,562 1,991
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 420,152 499,088 361,945 185,556 125,194
Custodian fee credit (7,050) (6,333) (5,854) (3,780) (1,518)
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 413,102 492,755 356,091 181,776 123,676
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,949,609 6,232,523 4,487,648 2,104,724 1,331,987
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain from investments 1,262,327 674,095 382,799 43,493 140,675
Change in net unrealized appreciation
(depreciation) of investments (741,569) (410,537) (600,563) (164,052) (206,016)
-----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments 520,758 263,558 (217,764) (120,559) (65,341)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $6,470,367 $6,496,081 $4,269,884 $1,984,165 $1,266,646
===================================================================================================================================
See accompanying notes to financial statements.
33
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
9/30/03 3/31/03 9/30/03 3/31/03 9/30/03 3/31/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,949,609 $ 12,666,221 $ 6,232,523 $ 13,377,076 $ 4,487,648 $ 9,450,682
Net realized gain from investments 1,262,327 2,175,032 674,095 2,738,597 382,799 2,127,842
Change in net unrealized
appreciation (depreciation)
of investments (741,569) 3,681,890 (410,537) (417,458) (600,563) (545,919)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations 6,470,367 18,523,143 6,496,081 15,698,215 4,269,884 11,032,605
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (6,076,275) (13,364,529) (6,356,153) (14,058,896) (4,472,626) (9,882,044)
From accumulated net realized
gains from investments -- (2,764,623) -- (3,171,385) -- (850,958)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (6,076,275) (16,129,152) (6,356,153) (17,230,281) (4,472,626) (10,733,002)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets 394,092 2,393,991 139,928 (1,532,066) (202,742) 299,603
Net assets at the beginning
of period 242,668,883 240,274,892 254,355,208 255,887,274 185,136,737 184,837,134
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $243,062,975 $242,668,883 $254,495,136 $254,355,208 $184,933,995 $185,136,737
====================================================================================================================================
Undistributed (Over-distribution
of) net investment
income at the
end of period $ 326,309 $ 452,975 $ (163,046) $ (39,416) $ (73,600) $ (88,622)
====================================================================================================================================
See accompanying notes to financial statements.
34
CALIFORNIA SELECT TAX-FREE (NXC) NEW YORK SELECT TAX-FREE (NXN)
---------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
9/30/03 3/31/03 9/30/03 3/31/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,104,724 $ 4,423,162 $ 1,331,987 $ 2,739,961
Net realized gain from investments 43,493 919,407 140,675 630,086
Change in net unrealized appreciation
(depreciation) of investments (164,052) 728,613 (206,016) 1,060,980
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations 1,984,165 6,071,182 1,266,646 4,431,027
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (2,133,661) (4,592,689) (1,336,218) (2,742,795)
From accumulated net realized gains
from investments -- (849,710) -- (366,890)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (2,133,661) (5,442,399) (1,336,218) (3,109,685)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (149,496) 628,783 (69,572) 1,321,342
Net assets at the beginning of period 90,975,122 90,346,339 56,683,078 55,361,736
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $90,825,626 $90,975,122 $56,613,506 $56,683,078
====================================================================================================================================
Undistributed (Over-distribution of) net
investment income at the
end of period $ (104,774) $ (75,837) $ 26,457 $ 30,688
====================================================================================================================================
See accompanying notes to financial statements.
35
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The Trusts covered in this report and their corresponding Common share 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) and
Nuveen New York Select Tax-Free Income Portfolio (NXN). The Trusts are
registered under the Investment Company Act of 1940, as amended, as closed-end,
diversified management investment companies.
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 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 Trust's 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, evaluations
of anticipated cash flows or collateral 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, or its designee, 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. The securities so purchased are subject to
market fluctuation during this period. The Trusts have instructed the custodian
to segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At September 30, 2003,
Select Tax-Free (NXP) and Select Tax-Free 3 (NXR) each had outstanding
when-issued purchase commitments of $489,430. There were no such outstanding
purchase commitments in any of the other Trusts.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
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
Dividends from tax-exempt net investment income are declared monthly. 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.
36
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount, if any, 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.
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.
2. TRUST SHARES
None of the Trusts engaged in transactions in their own shares during the six
months ended September 30, 2003, nor during the fiscal year ended March 31,
2003.
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the six months ended September 30, 2003, 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 $24,872,867 $14,789,992 $7,555,292 $15,920,966 $7,019,024
Sales and maturities 24,576,700 14,874,100 9,967,900 17,201,284 6,276,679
=========================================================================================================
37
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At September 30, 2003, the cost of 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)
---------------------------------------------------------------------------------------------------------
Cost of investments $224,247,291 $243,299,988 $174,995,710 $81,978,663 $51,653,464
=========================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at September 30, 2003, 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 $16,559,751 $11,499,595 $ 7,732,270 $3,852,201 $2,729,642
Depreciation (2,705,395) (3,599,373) (2,037,554) (213,353) (105,360)
---------------------------------------------------------------------------------------------------------
Net unrealized appreciation
of investments $13,854,356 $ 7,900,222 $ 5,694,716 $3,638,848 $2,624,282
=========================================================================================================
The tax components of undistributed net investment income and net realized gains
at March 31, 2003, the Trusts' last fiscal year end, 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)
---------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income $741,634 $780,129 $539,760 $247,448 $249,538
Undistributed net ordinary income* -- -- 5,254 858 --
Undistributed net long-term capital gains 93,875 296,227 485,262 68,545 181,429
=========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the fiscal year ended March 31,
2003, the Trusts' last fiscal year end, was designated for purposes of the
dividends paid deduction as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
2003 (NXP) (NXQ) (NXR) (NXC) (NXN)
---------------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income $13,511,932 $14,208,907 $9,995,343 $4,636,488 $2,754,516
Distributions from net
ordinary income* 37,830 46,670 3,378 -- --
Distributions from net
long-term capital gains 2,726,793 3,133,168 850,958 849,710 366,890
=========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
38
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Trusts' investment management agreements with Nuveen Institutional
Advisory Corp. (the "Adviser"), a wholly owned subsidiary of Nuveen Investments,
Inc., each Trust pays an annual management 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% .3000%
For the next $125 million .2375 .2875
For the next $250 million .2250 .2750
For the next $500 million .2125 .2625
For the next $1 billion .2000 .2500
For net assets over $2 billion .1875 .2375
=======================================================================================================
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. 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.
6. INVESTMENT COMPOSITION
At September 30, 2003, the revenue sources by municipal purpose, expressed as a
percent of total 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)
---------------------------------------------------------------------------------------------------------
Consumer Staples 2% 4% 4% 2% 2%
Education and Civic Organizations 1 5 6 15 13
Healthcare 19 17 18 16 9
Housing/Multifamily -- 7 7 -- 9
Housing/Single Family 3 3 4 -- 9
Long-Term Care -- -- 1 2 9
Materials 4 2 -- -- --
Tax Obligation/General 9 6 7 21 6
Tax Obligation/Limited 16 11 12 6 8
Transportation 13 16 8 16 6
U.S. Guaranteed 18 10 8 5 11
Utilities 10 15 22 10 6
Water and Sewer 5 2 3 7 12
Other -- 2 -- -- --
---------------------------------------------------------------------------------------------------------
100% 100% 100% 100% 100%
=========================================================================================================
Certain 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 (56% for Select
Tax-Free (NXP), 56% for Select Tax-Free 2 (NXQ), 38% for Select Tax-Free 3
(NXR), 69% for California Select Tax-Free (NXC), and 62% 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.
39
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
7. SUBSEQUENT EVENT - DISTRIBUTIONS TO SHAREHOLDERS
The Trusts declared dividend distributions from their tax-exempt net investment
income which were paid on November 3, 2003, to shareholders of record on October
15, 2003, 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 $.0610 $.0585 $.0575 $.0560 $.0570
=========================================================================================================
40
Financial
HIGHLIGHTS (Unaudited)
41
Financial
Highlights (Unaudited)
Selected data for a share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------- --------------------------------
Net
Realized/ Ending
Beginning Net Unrealized Net Net Ending
Net Asset Investment Investment Investment Capital Asset Market
Value Income Gain (Loss) Total Income Gains Total Value Value
===============================================================================================================================
SELECT TAX-FREE (NXP)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2004 (a) $14.82 $.36 $ .03 $ .39 $(.37) $ -- $(.37) $14.84 $14.0000
2003 14.67 .77 .37 1.14 (.82) (.17) (.99) 14.82 14.1500
2002 15.05 .88 (.38) .50 (.86) (.02) (.88) 14.67 13.8500
2001 14.89 .91 .15 1.06 (.90) -- (.90) 15.05 14.5000
2000 15.55 .90 (.66) .24 (.90) -- (.90) 14.89 13.6875
1999 15.62 .90 (.07) .83 (.90) -- (.90) 15.55 16.3750
SELECT TAX-FREE 2 (NXQ)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2004 (a) 14.45 .35 .01 .36 (.36) -- (.36) 14.45 13.2600
2003 14.53 .76 .14 .90 (.80) (.18) (.98) 14.45 13.4900
2002 14.89 .86 (.36) .50 (.84) (.02) (.86) 14.53 13.6600
2001 14.75 .87 .14 1.01 (.87) -- (.87) 14.89 14.1500
2000 15.41 .87 (.66) .21 (.87) -- (.87) 14.75 13.3750
1999 15.43 .87 (.02) .85 (.87) -- (.87) 15.41 15.8750
SELECT TAX-FREE 3 (NXR)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2004 (a) 14.28 .35 (.01) .34 (.35) -- (.35) 14.27 13.0500
2003 14.26 .73 .12 .85 (.76) (.07) (.83) 14.28 13.0600
2002 14.53 .81 (.28) .53 (.80) -- (.80) 14.26 13.4200
2001 14.32 .81 .21 1.02 (.81) -- (.81) 14.53 13.7000
2000 14.98 .82 (.66) .16 (.82) -- (.82) 14.32 12.8750
1999 14.96 .82 .02 .84 (.82) -- (.82) 14.98 15.2500
CALIFORNIA SELECT
TAX-FREE (NXC)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2004 (a) 14.54 .34 (.02) .32 (.34) -- (.34) 14.52 13.4500
2003 14.44 .71 .26 .97 (.73) (.14) (.87) 14.54 13.5900
2002 14.79 .78 (.34) .44 (.77) (.02) (.79) 14.44 14.2500
2001 14.57 .79 .23 1.02 (.79) (.01) (.80) 14.79 13.9400
2000 15.26 .79 (.67) .12 (.79) (.02) (.81) 14.57 13.7500
1999 15.21 .79 .05 .84 (.79) -- (.79) 15.26 15.7500
NEW YORK SELECT
TAX-FREE (NXN)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2004 (a) 14.51 .34 (.02) .32 (.34) -- (.34) 14.49 13.5800
2003 14.17 .70 .43 1.13 (.70) (.09) (.79) 14.51 13.6000
2002 14.51 .73 (.33) .40 (.74) -- (.74) 14.17 13.7600
2001 14.31 .78 .20 .98 (.78) -- (.78) 14.51 14.0500
2000 14.92 .78 (.61) .17 (.78) -- (.78) 14.31 12.6875
1999 14.91 .78 .01 .79 (.78) -- (.78) 14.92 15.1250
===============================================================================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------------------------
Total Returns Before Credit After Credit***
----------------------- --------------------------- ---------------------------
Ratio of Net Ratio of Net
Based on Ending Ratio of Investment Ratio of Investment
Based on Net Net Expenses to Income to Expenses to Income to Portfolio
Market Asset Assets Average Average Average Average Turnover
Value** Value** (000) Net Assets Net Assets Net Assets Net Assets Rate
====================================================================================================================================
SELECT TAX-FREE (NXP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2004 (a) 1.59% 2.74% $243,063 .35%* 4.89%* .34%* 4.89%* 10%
2003 9.51 7.84 242,669 .37 5.20 .36 5.21 35
2002 1.54 3.41 240,275 .38 5.89 .37 5.89 26
2001 12.63 7.32 246,475 .35 6.06 .35 6.07 2
2000 (11.09) 1.62 243,814 .36 5.97 .36 5.97 --
1999 9.02 5.43 254,635 .36 5.78 .36 5.78 1
SELECT TAX-FREE 2 (NXQ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2004 (a) .95 2.53 254,495 .39* 4.89* .39* 4.90* 6
2003 6.01 6.33 254,355 .42 5.20 .41 5.21 46
2002 2.57 3.41 255,887 .43 5.79 .42 5.80 21
2001 12.46 7.04 262,144 .41 5.89 .40 5.90 2
2000 (10.38) 1.43 259,660 .40 5.82 .40 5.82 1
1999 9.51 5.63 271,240 .40 5.65 .40 5.65 1
SELECT TAX-FREE 3 (NXR)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2004 (a) 2.56 2.38 184,934 .39* 4.84* .38* 4.85* 4
2003 3.51 6.09 185,137 .42 5.09 .41 5.10 51
2002 3.84 3.70 184,837 .44 5.59 .42 5.60 9
2001 12.97 7.36 188,344 .47 5.66 .46 5.67 2
2000 (10.29) 1.11 185,671 .41 5.65 .41 5.65 --
1999 7.78 5.76 194,165 .42 5.45 .42 5.45 --
CALIFORNIA SELECT
TAX-FREE (NXC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2004 (a) 1.46 2.24 90,826 .41* 4.61* .40* 4.62* 18
2003 1.34 6.86 90,975 .43 4.84 .42 4.85 42
2002 7.95 3.03 90,346 .44 5.27 .43 5.28 12
2001 7.23 7.21 92,517 .43 5.38 .42 5.39 2
2000 (7.57) .90 91,166 .45 5.37 .45 5.38 3
1999 8.22 5.65 95,501 .44 5.20 .44 5.20 1
NEW YORK SELECT
TAX-FREE (NXN)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2004 (a) 2.35 2.24 56,614 .44* 4.68* .44* 4.69* 11
2003 4.73 8.17 56,683 .46 4.85 .45 4.86 35
2002 3.17 2.75 55,362 .49 5.04 .48 5.05 28
2001 17.36 7.02 56,679 .48 5.39 .47 5.40 3
2000 (11.18) 1.21 55,924 .50 5.36 .49 5.37 --
1999 6.14 5.40 58,303 .49 5.19 .49 5.19 --
====================================================================================================================================
* 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, 2003.
See accompanying notes to financial statements.
42-43 SPREAD
Build Your Wealth
AUTOMATICALLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End 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.
44
Fund
INFORMATION
BOARD OF TRUSTEES
William E. Bennett
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
Anne E. Impellizzeri
William T. Kissick
Thomas E. Leafstrand
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Sheila W. Wellington
FUND MANAGER
Nuveen Institutional
Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
GLOSSARY OF TERMS USED IN THIS REPORT
Average Annual Total Return: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
Average Duration: Duration is a measure of a bond or bond fund's sensitivity to
changes in interest rates. Generally, the longer a bond or fund's duration, the
more the price of the bond or fund will change as interest rates change.
Average Effective Maturity: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
Market Yield (also known as Dividend Yield or Current Yield): An investment's
current annualized dividend divided by its current market price.
Net Asset Value (NAV): A fund's NAV is calculated by subtracting the liabilities
of the fund from its total assets and then dividing the remainder by the number
of shares outstanding. Fund NAVs are calculated at the end of each business day.
Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
---------
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 period ended September 30, 2003. Any future repurchases
will be reported to shareholders in the next annual or semiannual report.
45
Serving Investors
FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
Managing $90 billion in assets, Nuveen Investments offers access to a number of
different asset classes and investing solutions through a variety of products.
Nuveen Investments markets its capabilities under four distinct brands: Nuveen,
a leader in tax-free investments; NWQ, a leader in value-style equities;
Rittenhouse, a leader in growth-style equities; and Symphony, a leading
institutional manager of market-neutral alternative investment portfolios.
To learn more about the products and services Nuveen Investments offers and for
a prospectus, where applicable, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information carefully before you invest.
Distributed by
NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606
| www.nuveen.com
ESA-B-0903D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable at this time.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable to this filing.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's last
fiscal half-year (the registrant's second fiscal half-year in the case
of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because posted on registrant's website at www.nuveen.com/etf
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen California Select Tax-Free Income Portfolio
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: December 9, 2003
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(Principal Executive Officer)
Date: December 9, 2003
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date: December 9, 2003
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.