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 811-7056
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Nuveen Select Maturities Municipal Fund
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: March 31
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Date of reporting period: September 30, 2009
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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.
LOGO: NUVEEN INVESTMENTS
Closed-End Funds
Nuveen Investments
Municipal Closed-End Funds
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Semi-Annual Report September 30, 2009
----------------------------------
NUVEEN SELECT
MATURITIES MUNICIPAL FUND
NIM
SEPTEMBER 09
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LOGO: NUVEEN INVESTMENTS
[PHOTO OF ROBERT P. BREMNER]
Chairman's
Letter to Shareholders
DEAR SHAREHOLDER,
The financial markets in which your Fund operates continue to reflect the larger
economic crosscurrents. The illiquidity that infected global credit markets over
the last year appears to be slowly but steadily receding. The major institutions
that are the linchpin of the international financial system are strengthening
their capital structures, but many still struggle with losses in their various
portfolios. There are encouraging signs of recovery in European and Asian
economies, while the U.S. economy continues to feel the impact of job losses and
an over-borrowed consumer. Global trends include modestly increasing trade and
increased concern about the ability of the U.S. government to address its
substantial budgetary deficits. Identifying those developments that will define
the future is never easy, but rarely is it more difficult than at present.
After considerable volatility in the first few months of 2009, both the
fixed-income and equity markets have seen a partial recovery. A fundamental
component of a successful long-term investment program is a commitment to remain
invested during market downturns in order to be better positioned to benefit
from any recovery. Another component is to re-evaluate investment disciplines
and tactics and to confirm their validity following periods of extreme
volatility and market dislocation, such as we have recently experienced. Your
Board carried out an intensive review of investment performance with these
objectives in mind during April and May of this year as part of the annual
management contract renewal process. I encourage you to read the description of
this process in the Annual Investment Management Agreement Approval Process
section of this report.
Remaining invested through market downturns and reconfirming the appropriateness
of a long term investment strategy is as important for our shareholders as it is
for professional investment managers. For that reason, I again encourage you to
remain in communication with your financial consultant on these subjects. For
recent developments on all your Nuveen Funds, please visit the Nuveen web site:
www.nuveen.com.
On behalf of the other members of your Fund's Board, we look forward to
continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
----------------------------
Robert P. Bremner
Chairman of the Board
November 24, 2009
Nuveen Investments 1
Portfolio Manager's Comments
Nuveen Select Maturities Municipal Fund (NIM)
Portfolio manager Paul Brennan discusses key investment strategies and the
six-month performance of the Nuveen Select Maturities Municipal Fund. With 18
years of investment experience, including twelve years with Nuveen, Paul has
managed NIM since 2006.
WHAT KEY STRATEGIES WERE USED TO MANAGE NIM DURING THE SIX-MONTH REPORTING
PERIOD ENDED SEPTEMBER 30, 2009?
During this reporting period, municipal bond prices generally rose, as strong
cash flows into municipal bond funds combined with tighter supply of new
tax-exempt issuance to provide favorable supply and demand conditions.
One reason for the supply reduction was the introduction of the Build America
Bond program. Build America Bonds are a new class of taxable municipal debt
created as part of the February 2009 economic stimulus package. These bonds
provide municipal issuers with a federal subsidy equal to 35% of the security's
interest payments, and therefore offer issuers an attractive alternative to
traditional tax-exempt debt. As of September 30, 2009, approximately 20% of new
bonds issued in the municipal market were issued as taxable Build America Bonds,
totaling more than $33 billion. Since interest payments from these bonds
represent taxable income, we did not see them as a good opportunity for NIM.
Also, Build America Bonds generally are not as cost-effective for issuers
offering short and intermediate maturities, since the majority of these taxable
bonds have been issued with longer maturities. Consequently, the supply of
tax-exempt bonds has been more constrained at the long end of the maturity
spectrum. Despite this, we continued to find attractive opportunities for NIM,
especially in the short and intermediate maturity categories of the tax-exempt
municipal market.
Overall, we continued to focus on relative value by taking a bottom-up approach
to discover undervalued sectors and individual credits with the potential to
perform well over the long term. Specifically, we were purchasing tobacco bonds,
which we thought represented good value following the sell-off in 2008. While
some of our activity involved replacing tobacco bonds that had been called from
NIM's portfolio, we were also adding incrementally to our tobacco exposure. We
also purchased a few bonds in the health care sector, where supply was more
plentiful because hospitals generally do not qualify for the Build America Bond
program and so must continue to issue bonds in the tax-exempt municipal market.
In the "other revenue" category, we added some gas pre-payment bonds. Municipal
utilities use the proceeds from these tax-exempt credits to pre-pay for gas
supplies to be delivered over a long period, such as 15 years.
Cash for new purchases during this period was generated largely by maturing or
called bonds. We also were reinvesting the Fund's cash reserves, which we had
allowed to
CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF
SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS
RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND
OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGER AS OF THE DATE
OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY
FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS, AND THE VIEWS
EXPRESSED HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND
OTHER FACTORS. THE FUND DISCLAIMS ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE
ANY FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN.
2 Nuveen Investments
increase slightly in order to better position NIM amid the market uncertainty of
the previous reporting period.
HOW DID THE FUND PERFORM?
Results for NIM, as well as relevant index information, are presented in the
accompanying table.
AVERAGE ANNUAL TOTAL RETURNS ON NET ASSET VALUE*
FOR PERIODS ENDED 9/30/09
SIX-MONTH 1-YEAR 5-YEAR 10-YEAR
---------------------------------------------------------------------------------------------------------------
NIM 8.46% 10.95% 4.52% 3.90%
Barclays Capital 7-Year Municipal Bond Index(1) 5.85% 12.51% 4.89% 5.65%
Standard & Poor's (S&P) National Municipal Bond Index(2) 10.95% 14.42% 4.70% 5.74%
---------------------------------------------------------------------------------------------------------------
For the six months ended September 30, 2009, NIM's cumulative return on net
asset value (NAV) exceeded the return for the Barclays Capital 7-Year Municipal
Bond Index but underperformed the Standard & Poor's (S&P) National Municipal
Bond Index. Key management factors that influenced the Fund's return for this
period included duration and yield curve positioning, credit exposure and sector
allocation.
During this period, we saw yields on tax-exempt bonds decline and bond
valuations increase, especially at the longer end of the municipal yield curve.
Bonds in the Barclays Capital Municipal Bond Index with maturities longer than
15 years, particularly those with the longest maturities (22 years and longer),
benefited the most from this interest rate environment. These bonds generally
outperformed credits with shorter maturities, with bonds maturing in one to two
years posting the weakest returns for the period. In general, this environment
was advantageous for NIM, which, as an intermediate-term strategy Fund,(3)
benefited significantly from the decline in yields in the intermediate part of
the curve. Overall, we believe NIM was well positioned in terms of duration and
yield curve positioning during this period.
While duration and yield curve positioning played an important role, in NIM's
performance for this six-month period, so did credit exposure. As noted earlier,
demand for municipal bonds increased among both institutional and individual
investors during this period. This increase was driven by a variety of factors,
including concerns about potential tax increases, the need to rebalance
portfolio allocations and a growing appetite for additional risk. At the same
time, the supply of new municipal securities declined. As investors bid up
municipal bond prices, bonds rated BBB or below and non-rated bonds generally
outperformed those rated AAA. In this environment, NIM's performance benefited
greatly from its allocations of bonds rated A, BBB and below, and non-rated
bonds, which comprised approximately 63% of its portfolio at period end.
Holdings that generally contributed positively to NIM's performance included
industrial development revenue (IDR), health care and special tax bonds, all of
which outperformed the overall municipal market during this period. In
particular, NIM benefited from its weightings in IDR and health care credits.
Bonds backed by the 1998 master tobacco settlement agreement also posted strong
returns. As of September 30, 2009, NIM's holdings of lower-rated tobacco bonds
accounted for more than 4% of its portfolio, providing a meaningful contribution
to performance.
* Six-month returns are cumulative; returns for one-year, five-year and
ten-year are annualized.
Past performance is not predictive of future results. Current performance
may be higher or lower than the data shown. Returns do not reflect the
deduction of taxes that shareholders may have to pay on Fund distributions
or upon the sale of Fund shares.
For additional information, see the Performance Overview page for NIM in
this report.
(1) The Barclays Capital (formerly Lehman Brothers) 7-Year Municipal Bond
Index is an unleveraged, unmanaged national index comprising a broad range
of investment-grade municipal bonds with maturities ranging from six to
eight years. Results for this Barclays Capital index do not reflect any
expenses, and this index is not available for direct investment.
(2) The Standard & Poor's (S&P) National Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the investment-grade U.S. municipal bond market.
(3) In keeping with its investment parameters, NIM maintains an average
effective maturity of twelve years or less for portfolio holdings.
Nuveen Investments 3
Pre-refunded bonds, which are often backed by U.S. Treasury securities and which
had been one of the top performing segments of the municipal bond market over
the past two years, performed especially poorly during this period. This was due
primarily to their shorter effective maturities and higher credit quality. NIM's
weighting in pre-refunded bonds, which was slightly below the market average,
lessened the negative impact of these holdings on the Fund's performance.
Additional market segments that lagged the overall municipal market included
general obligation bonds and resource recovery and water and sewer credits.
4 Nuveen Investments
Dividend and Share Price Information
The dividend of NIM remained stable throughout the six-month reporting period
ended September 30, 2009.
NIM seeks to pay stable dividends at rates that reflect the Fund's past results
and projected future performance. During certain periods, NIM may pay dividends
at a rate that may be more or less than the amount of net investment income
actually earned by the Fund during the period. If a Fund has cumulatively earned
more than it has paid in dividends, it holds the excess in reserve as
undistributed net investment income (UNII) as part of the Fund's NAV.
Conversely, if a Fund has cumulatively paid dividends in excess of its earnings,
the excess constitutes negative UNII that is likewise reflected in the Fund's
NAV. NIM will, over time, pay all of its net investment income as dividends to
shareholders. As of September 30, 2009, NIM had a positive UNII balance, based
upon our best estimate, for tax purposes and a negative UNII balance for
financial statement purposes.
SHARE REPURCHASES AND SHARE PRICE INFORMATION
Since the inception of the Fund's repurchase program, during July 2008, NIM has
not repurchased any of its outstanding common shares.
As of September 30, 2009, the share price of NIM was trading at a premium of
+0.29% to its NAV. The Fund's average premium over the entire six-month
reporting period was +1.30%.
Nuveen Investments 5
NIM Performance OVERVIEW | Nuveen Select Maturities Municipal Fund
as of September 30, 2009
FUND SNAPSHOT
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Share Price $ 10.31
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Net Asset Value $ 10.28
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Premium/(Discount) to NAV 0.29%
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Market Yield 4.07%
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Taxable-Equivalent Yield(1) 5.65%
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Net Assets ($000) $ 127,582
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Average Effective
Maturity on Securities (Years) 9.85
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Modified Duration 3.88
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AVERAGE ANNUAL TOTAL RETURN
(Inception 9/18/92)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 5.50% 8.46%
--------------------------------------------------------------------------------
1-Year 20.22% 10.95%
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5-Year 6.14% 4.52%
--------------------------------------------------------------------------------
10-Year 5.39% 3.90%
--------------------------------------------------------------------------------
STATES
(as a % of total municipal bonds)
--------------------------------------------------------------------------------
Illinois 14.4%
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Colorado 13.0%
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Pennsylvania 7.5%
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Texas 6.8%
--------------------------------------------------------------------------------
New York 6.1%
--------------------------------------------------------------------------------
South Carolina 6.0%
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Florida 5.8%
--------------------------------------------------------------------------------
Arkansas 4.2%
--------------------------------------------------------------------------------
Wisconsin 3.9%
--------------------------------------------------------------------------------
Kansas 3.1%
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Alabama 2.4%
--------------------------------------------------------------------------------
Iowa 2.3%
--------------------------------------------------------------------------------
Tennessee 2.1%
--------------------------------------------------------------------------------
Massachusetts 2.0%
--------------------------------------------------------------------------------
Minnesota 1.8%
--------------------------------------------------------------------------------
North Carolina 1.6%
--------------------------------------------------------------------------------
Connecticut 1.6%
--------------------------------------------------------------------------------
Louisiana 1.5%
--------------------------------------------------------------------------------
Other 13.9%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 19.1%
--------------------------------------------------------------------------------
Utilities 18.0%
--------------------------------------------------------------------------------
Tax Obligation/Limited 13.3%
--------------------------------------------------------------------------------
Health Care 11.1%
--------------------------------------------------------------------------------
Tax Obligation/General 7.2%
--------------------------------------------------------------------------------
Transportation 5.8%
--------------------------------------------------------------------------------
Long-Term Care 5.1%
--------------------------------------------------------------------------------
Education and Civic Organizations 4.9%
--------------------------------------------------------------------------------
Consumer Staples 4.5%
--------------------------------------------------------------------------------
Euro Dollar Time Deposit 0.3%
--------------------------------------------------------------------------------
Other 10.7%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL MUNICIPAL BONDS)
[PIE CHART]
AAA/U.S.
Guaranteed 32%
AA 6%
A 33%
BBB 18%
BB or Lower 3%
N/R 8%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER SHARE
[BAR CHART]
Oct $ 0.0365
Nov 0.0365
Dec 0.0365
Jan 0.0365
Feb 0.0365
Mar 0.035
Apr 0.035
May 0.035
Jun 0.035
Jul 0.035
Aug 0.035
Sep 0.035
SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
10/01/08 $ 9.36
9.35
8.48
8.8
9.29
9.3
9.25
9.3
9.11
9.16
9.04
9.1
9.3
9.12
9.5
9.94
9.82
9.41
10.13
9.82
9.88
9.56
9.89
9.87
9.98
9.88
9.9
10.16
10.1
10.02
9.99
9.99
10.04
10
9.96
10.15
9.975
9.95
9.91
10.13
10.08
10.2
10.03
9.99
10.01
9.98
9.98
10.03
10.1199
10.01
10.122
10.25
10.35
9/30/09 10.3099
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a income tax rate of 28%. When comparing
this Fund to investments that generate qualified dividend income, the
Taxable-Equivalent Yield is lower.
6 Nuveen Investments
NIM | Shareholder Meeting Report
The annual meeting of shareholders was held on July 28, 2009, in the Lobby
Conference Room, 333 West Wacker Drive, Chicago, IL 60606; at this meeting the
shareholders were asked to vote on the election of Board Members.
NIM
--------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Robert P. Bremner For 10,668,059
Withhold 207,179
--------------------------------------------------------------------------------
Total 10,875,238
================================================================================
Jack B. Evans
For 10,669,973
Withhold 205,265
--------------------------------------------------------------------------------
Total 10,875,238
================================================================================
William J. Schneider
For 10,668,273
Withhold 206,965
--------------------------------------------------------------------------------
Total 10,875,238
================================================================================
Nuveen Investments 7
NIM | Nuveen Select Maturities Municipal Fund
| Portfolio of Investments September 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
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ALABAMA - 2.4%
$ 2,000 Alabama 21st Century Authority, Tobacco Settlement Revenue 12/11 at 101.00 A- $ 2,062,860
Bonds, Series 2001, 5.750%, 12/01/17
500 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, 2/10 at 100.00 AAA 489,170
Series 2003B, 5.250%, 2/01/12 - FSA Insured
500 Marshall County Healthcare Authority, Alabama, Revenue Bonds, 1/12 at 101.00 A- 517,585
Series 2002A, 6.250%, 1/01/22
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3,000 Total Alabama 3,069,615
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ARIZONA - 1.0%
Salt Verde Financial Corporation, Arizona, Senior Gas Revenue
Bonds, Series 2007:
100 5.000%, 12/01/17 No Opt. Call A 99,483
85 5.250%, 12/01/19 No Opt. Call A 85,835
35 5.000%, 12/01/32 No Opt. Call A 34,292
380 5.000%, 12/01/37 No Opt. Call A 366,081
750 Surprise Municipal Property Corporation, Arizona, Wastewater 4/11 at 100.00 N/R 707,925
System Revenue Bonds, Series 2007, 4.500%, 4/01/17
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1,350 Total Arizona 1,293,616
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ARKANSAS - 4.1%
1,000 Fort Smith, Arkansas, Water and Sewer Revenue Refunding and 10/11 at 100.00 AAA 1,090,440
Construction Bonds, Series 2002A, 5.250%, 10/01/17
(Pre-refunded 10/01/11) - FSA Insured
1,500 Jefferson County, Arkansas, Pollution Control Revenue Bonds, 6/11 at 100.00 A- 1,522,500
Entergy Arkansas Inc. Project, Series 2006, 4.600%, 10/01/17
1,000 Jonesboro, Arkansas, Industrial Development Revenue Bonds, No Opt. Call BBB+ 1,079,720
Anheuser Busch Inc. Project, Series 2002, 4.600%, 11/15/12
1,380 North Little Rock, Arkansas, Electric Revenue Refunding Bonds, No Opt. Call A 1,557,289
Series 1992A, 6.500%, 7/01/15 - NPFG Insured
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4,880 Total Arkansas 5,249,949
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CALIFORNIA - 1.2%
400 California Health Facilities Financing Authority, Revenue 7/15 at 100.00 A 402,304
Bonds, Catholic Healthcare West, Series 2008H, 5.125%,
7/01/22
255 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 236,464
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1, 4.500%, 6/01/27
2,000 Palomar Pomerado Health, California, General Obligation Bonds, No Opt. Call AAA 870,820
Election of 2004, Series 2009A, 0.000%, 8/01/25 - AGC
Insured
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2,655 Total California 1,509,588
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 12.8%
2,895 Centennial Downs Metropolitan District, Colorado, General 12/14 at 100.00 N/R 3,241,155
Obligation Bonds, Series 1999, 5.000%, 12/01/20 - AMBAC
Insured
1,200 Colorado Educational and Cultural Facilities Authority, 7/12 at 100.00 BBB 1,199,868
Charter School Revenue Bonds, Douglas County School
District RE-1 - DCS Montessori School, Series 2002A,
6.000%, 7/15/22
1,175 Colorado Educational and Cultural Facilities Authority, 12/13 at 100.00 A 1,186,774
Revenue Bonds, Classical Academy Charter School, Series
2003, 4.500%, 12/01/18 - SYNCORA GTY Insured
245 Colorado Housing Finance Authority, Single Family Program 4/10 at 105.00 AA 262,072
Senior Bonds, Series 2000D-2, 6.900%, 4/01/29 (Alternative
Minimum Tax)
1,025 Denver Health and Hospitals Authority, Colorado, Healthcare 12/11 at 100.00 N/R (4) 1,134,952
Revenue Bonds, Series 2001A, 6.000%, 12/01/23 (Pre-refunded
12/01/11)
1,465 Denver West Metropolitan District, Colorado, General 12/13 at 100.00 BBB- 1,328,008
Obligation Refunding and Improvement Bonds, Series 2003,
4.500%, 12/01/18 - RAAI Insured
1,500 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call A 1,563,435
Bonds, Series 2007C-2, 5.000%, 9/01/39 (Mandatory put
9/01/13) - NPFG Insured
1,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call A 177,720
Series 2004B, 0.000%, 3/01/36 - NPFG Insured
8 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 10 El Paso County, Colorado, FNMA Mortgage-Backed Single Family No Opt. Call Aaa $ 10,856
Revenue Refunding Bonds, Series 1992A-2, 8.750%, 6/01/11
1,050 Erie, Boulder and Weld Counties, Colorado, Water Enterprise 12/09 at 100.00 N/R 864,717
Revenue Bonds, Series 1998, 5.000%, 12/01/23 - ACA Insured
70 Northwest Parkway Public Highway Authority, Colorado, Revenue 6/11 at 102.00 AAA 76,415
Bonds, Senior Series 2001A, 5.250%, 6/15/41 (Pre-refunded
6/15/11) - FSA Insured
5,875 Northwest Parkway Public Highway Authority, Colorado, Senior 6/11 at 38.04 N/R (4) 2,181,799
Lien Revenue Bonds, Series 2001B, 0.000%, 6/15/27
(Pre-refunded 6/15/11) - AMBAC Insured
2,845 University of Colorado Hospital Authority, Revenue Bonds, 11/11 at 100.00 A3 (4) 3,114,393
Series 2001A, 5.600%, 11/15/21 (Pre-refunded 11/15/11)
------------------------------------------------------------------------------------------------------------------------------------
20,355 Total Colorado 16,342,164
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 1.5%
Eastern Connecticut Resource Recovery Authority, Solid Waste
Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A:
395 5.500%, 1/01/14 (Alternative Minimum Tax) 1/10 at 100.00 BBB 395,423
1,570 5.500%, 1/01/15 (Alternative Minimum Tax) 1/10 at 100.00 BBB 1,571,413
------------------------------------------------------------------------------------------------------------------------------------
1,965 Total Connecticut 1,966,836
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.7%
2,400 Deltona, Florida, Utility Systems Water and Sewer Revenue 10/13 at 100.00 A 2,516,280
Bonds, Series 2003, 5.250%, 10/01/17 - NPFG Insured
1,000 Florida Citizens Property Insurance Corporation, High Risk No Opt. Call A+ 1,069,210
Account Revenue Bonds, Series 2007A, 5.000%, 3/01/15 - NPFG
Insured
600 Florida Department of Environmental Protection, Florida 7/17 at 101.00 AA- 674,772
Forever Revenue Bonds, Series 2007B, 5.000%, 7/01/19 - NPFG
Insured
45 JEA, Florida, Electric Revenue Certificates, Series 1973-2, No Opt. Call AAA 49,392
6.800%, 7/01/12 (ETM)
2,000 Orange County, Florida, Tourist Development Tax Revenue Bonds, 10/15 at 100.00 A+ 2,130,160
Series 2005, 5.000%, 10/01/22 - AMBAC Insured
265 Port Everglades Authority, Florida, Port Facilities Revenue No Opt. Call AAA 314,892
Bonds, Series 1986, 7.125%, 11/01/16 (ETM)
500 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- 518,075
Revenue, Baptist Health System Obligation Group, Series
2007, 5.000%, 8/15/27
------------------------------------------------------------------------------------------------------------------------------------
6,810 Total Florida 7,272,781
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.4%
405 Cherokee County Water and Sewerage Authority, Georgia, Revenue 8/22 at 100.00 A (4) 464,065
Bonds, Series 1995, 5.200%, 8/01/25 (Pre-refunded 8/01/22)
- MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.1%
100 Madison County, Idaho, Hospital Revenue Certificates of 9/16 at 100.00 BBB- 86,747
Participation, Madison Memorial Hospital,
Series 2006, 5.250%, 9/01/37
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.2%
635 Chicago, Illinois, Tax Increment Allocation Bonds, 1/10 at 100.00 N/R 635,508
Irving/Cicero Redevelopment Project, Series 1998, 7.000%,
1/01/14
1,500 Cook County Township High School District 208, Illinois, 12/15 at 100.00 A1 1,648,785
General Obligation Bonds, Series 2006, 5.000%, 12/01/21 -
NPFG Insured
2,000 Huntley, Illinois, Special Service Area 9, Special Tax Bonds, 3/17 at 100.00 AAA 2,105,840
Series 2007, 5.100%, 3/01/28 - AGC Insured
4,800 Illinois Development Finance Authority, GNMA Collateralized 4/11 at 105.00 Aaa 5,529,311
Mortgage Revenue Bonds, Greek American Nursing Home
Committee, Series 2000A, 7.600%, 4/20/40
2,000 Illinois Development Finance Authority, Revenue Refunding 4/10 at 102.00 Ba1 1,952,220
Bonds, Olin Corporation, Series 1993D, 6.750%, 3/01/16
2,000 Illinois Educational Facilities Authority, Revenue Bonds, Art 3/14 at 100.00 A+ 2,124,560
Institute of Chicago, Series 2000, 4.450%, 3/01/34
(Mandatory put 3/01/15)
Nuveen Investments 9
NIM | Nuveen Select Maturities Municipal Fund (continued)
| Portfolio of Investments September 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 1,000 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Aaa $ 1,155,080
Revenue Bonds, Educational Advancement Foundation Fund,
University Center Project, Series 2002, 6.625%, 5/01/17
(Pre-refunded 5/01/12)
250 Illinois Finance Authority, Revenue Bonds, Roosevelt 4/17 at 100.00 Baa1 257,495
University, Series 2007, 5.250%, 4/01/22
25 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/10 at 101.00 Baa3 (4) 26,163
Medical Center, Series 2000, 6.350%, 5/15/15 (Pre-refunded
5/15/10)
20 Illinois Health Facilities Authority, Revenue Bonds, Condell No Opt. Call Aaa 22,136
Medical Center, Series 2002, 5.250%, 5/15/12 (ETM)
70 Illinois Health Facilities Authority, Revenue Bonds, Lutheran No Opt. Call AAA 74,983
General Health System, Series 1993A, 6.125%, 4/01/12 - FSA
Insured (ETM)
695 Illinois Health Facilities Authority, Revenue Bonds, Silver 2/10 at 101.00 BBB 699,128
Cross Hospital and Medical Centers, Series 1999, 5.500%,
8/15/19
1,355 Kane & DeKalb Counties, Illinois, Community United School No Opt. Call A3 927,999
District 301, General Obligation Bonds, Series 2006,
0.000%, 12/01/18 - NPFG Insured
700 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AA+ 911,687
McHenry and Will Counties, Illinois, General Obligation
Bonds, Series 1994D, 7.750%, 6/01/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
17,050 Total Illinois 18,070,895
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 0.2%
250 Jasper County, Indiana, Pollution Control Revenue Refunding No Opt. Call AA 278,668
Bonds, Northern Indiana Public Service Company Project,
Series 1994A Remarketed, 5.850%, 4/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 2.2%
1,000 Iowa Finance Authority, Healthcare Revenue Bonds, Genesis 7/10 at 100.00 A1 1,009,320
Medical Center, Series 2000, 6.250%, 7/01/25
1,725 Iowa Tobacco Settlement Authority, Tobacco Settlement 6/11 at 101.00 AAA 1,848,389
Asset-Backed Revenue Bonds, Series 2001B, 5.300%, 6/01/25
(Pre-refunded 6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
2,725 Total Iowa 2,857,709
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 3.0%
3,500 Wichita, Kansas, Hospital Facilities Revenue Refunding and 11/11 at 101.00 A+ 3,614,134
Improvement Bonds, Via Christi Health System Inc., Series
2001-III, 5.500%, 11/15/21
250 Wyandotte County-Kansas City Unified Government, Kansas, Sales 12/15 at 100.00 N/R 258,013
Tax Special Obligation Bonds, Redevelopment Project Area B,
Series 2005, 5.000%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
3,750 Total Kansas 3,872,147
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.2%
325 Kentucky Economic Development Finance Authority, Louisville 6/18 at 100.00 AAA 359,775
Arena Project Revenue Bonds, Louisville Arena Authority,
Inc., Series 2008A-1, 5.750%, 12/01/28 - AGC Insured
1,120 Kentucky Housing Corporation, Housing Revenue Bonds, Series 1/15 at 100.60 AAA 1,134,974
2005G, 5.000%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,445 Total Kentucky 1,494,749
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.5%
1,010 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 A 1,054,753
Rouge General Hospital, Series 2004, 5.250%, 7/01/24 - NPFG
Insured
Tobacco Settlement Financing Corporation, Louisiana, Tobacco
Settlement Asset-Backed Bonds, Series 2001B:
560 5.500%, 5/15/30 5/11 at 101.00 BBB 567,392
245 5.875%, 5/15/39 5/11 at 101.00 BBB 238,449
------------------------------------------------------------------------------------------------------------------------------------
1,815 Total Louisiana 1,860,594
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.9%
1,100 Maryland Energy Financing Administration, Revenue Bonds, AES 3/10 at 100.00 N/R 1,100,495
Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.9%
$ 500 Massachusetts Development Finance Agency, Revenue Bonds, 10/17 at 100.00 N/R $ 437,760
Orchard Cove, Series 2007, 5.000%, 10/01/19
1,445 Massachusetts Housing Finance Agency, Rental Housing Mortgage 7/10 at 100.00 A 1,459,667
Revenue Bonds, Series 2000H, 6.650%, 7/01/41 - NPFG Insured
(Alternative Minimum Tax)
190 Massachusetts Housing Finance Agency, Single Family Housing 6/10 at 100.00 AA 192,595
Revenue Bonds, Series 84, 5.000%, 12/01/13 (Alternative
Minimum Tax)
Massachusetts Port Authority, Special Facilities Revenue
Bonds, Delta Air Lines Inc., Series 2001A:
100 5.200%, 1/01/20 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 N/R 77,930
435 5.000%, 1/01/27 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 N/R 296,992
------------------------------------------------------------------------------------------------------------------------------------
2,670 Total Massachusetts 2,464,944
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.4%
1,000 Cornell Township Economic Development Corporation, Michigan, 5/12 at 100.00 AAA 1,115,910
Environmental Improvement Revenue Refunding Bonds,
MeadWestvaco Corporation-Escanaba Project, Series 2002,
5.875%, 5/01/18 (Pre-refunded 5/01/12)
525 Michigan State Hospital Finance Authority, Hospital Revenue 1/10 at 100.00 BB 500,540
Refunding Bonds, Sinai Hospital, Series 1995, 6.625%,
1/01/16
185 Michigan State Hospital Finance Authority, Revenue Refunding 2/10 at 100.00 BB- 185,126
Bonds, Detroit Medical Center, Series 1988A, 8.125%, 8/15/12
------------------------------------------------------------------------------------------------------------------------------------
1,710 Total Michigan 1,801,576
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.7%
1,100 Becker, Minnesota, Pollution Control Revenue Bonds, Northern 8/12 at 101.00 A1 1,266,111
States Power Company, Series 1993A, 8.500%, 9/01/19
250 Northern Municipal Power Agency, Minnesota, Electric System No Opt. Call AAA 280,185
Revenue Bonds, Refunding Series 2009A, 5.000%, 1/01/15 -
AGC Insured
640 White Earth Band of Chippewa Indians, Minnesota, Revenue No Opt. Call N/R 660,710
Bonds, Series 2000A, 7.000%, 12/01/11 - ACA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,990 Total Minnesota 2,207,006
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.7%
Mississippi Hospital Equipment and Facilities Authority,
Revenue Bonds, Baptist Memorial Healthcare,
Series 2004B-1:
280 5.000%, 9/01/16 No Opt. Call AA 303,828
300 5.000%, 9/01/24 9/14 at 100.00 AA 312,450
250 Warren County, Mississippi, Gulf Opportunity Zone Revenue 8/11 at 100.00 BBB 223,025
Bonds, International Paper Company, Series 2006A, 4.800%,
8/01/30
------------------------------------------------------------------------------------------------------------------------------------
830 Total Mississippi 839,303
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.1%
60 University of Montana, Revenue Bonds, Series 1996D, 5.375%, 11/09 at 100.00 A (4) 70,937
5/15/19 - MBIA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.9%
1,000 Dodge County School District 1, Nebraska, Fremont Public 12/14 at 100.00 Aa3 1,125,660
Schools, General Obligation Bonds, Series 2004, 5.000%,
12/15/19 - FSA Insured
30 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student Loan No Opt. Call Aa2 32,460
Program, Series 1993A-5B, 6.250%, 6/01/18 - MBIA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,030 Total Nebraska 1,158,120
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 0.4%
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000:
800 0.000%, 1/01/15 - AMBAC Insured No Opt. Call Caa2 154,328
35 0.000%, 1/01/16 - AMBAC Insured No Opt. Call Caa2 5,895
120 0.000%, 1/01/18 - AMBAC Insured No Opt. Call Caa2 16,327
50 0.000%, 1/01/20 - AMBAC Insured No Opt. Call Caa2 5,735
250 Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue 6/19 at 100.00 A 284,578
Bonds, Series 2009A, 8.000%, 6/15/30
------------------------------------------------------------------------------------------------------------------------------------
1,255 Total Nevada 466,863
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 11
NIM | Nuveen Select Maturities Municipal Fund (continued)
| Portfolio of Investments September 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.6%
$ 410 Bayonne Redevelopment Agency, New Jersey, Revenue Bonds, Royal No Opt. Call BB- $ 315,065
Caribbean Cruises Project, Series 2006A, 4.750%, 11/01/16
(Alternative Minimum Tax)
445 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 419,755
Settlement Asset-Backed Bonds, Series 2007-1A, 4.500%,
6/01/23
------------------------------------------------------------------------------------------------------------------------------------
855 Total New Jersey 734,820
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 6.0%
1,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 BBB+ 1,064,270
Brooklyn Law School, Series 2003A, 5.500%, 7/01/15 - RAAI
Insured
240 New York City Industrial Development Agency, New York, Civic No Opt. Call N/R 234,602
Facility Revenue Bonds, Special Needs Facilities Pooled
Program, Series 2008A-1, 5.700%, 7/01/13
1,500 New York State Energy Research and Development Authority, 10/09 at 100.00 A- 1,501,320
Facilities Revenue Bonds, Consolidated Edison Company Inc.,
Series 2001A, 4.700%, 6/01/36 (Mandatory put 10/01/12)
(Alternative Minimum Tax)
145 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 155,244
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.250%, 6/01/20 -
AMBAC Insured
4,300 Port Authority of New York and New Jersey, Special Project No Opt. Call A 4,696,158
Bonds, JFK International Air Terminal LLC, Sixth Series
1997, 7.000%, 12/01/12 - NPFG Insured (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,185 Total New York 7,651,594
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.6%
1,880 Union County, North Carolina, Certificates of Participation, 6/13 at 101.00 AA- 2,053,280
Series 2003, 5.000%, 6/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.4%
775 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/17 at 100.00 BBB 734,723
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2, 5.125%, 6/01/24
1,000 Toledo-Lucas County Port Authority, Ohio, Port Revenue Bonds, No Opt. Call A 1,054,450
Cargill Inc., Series 2004B, 4.500%, 12/01/15
------------------------------------------------------------------------------------------------------------------------------------
1,775 Total Ohio 1,789,173
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 7.3%
400 Pennsylvania Economic Development Financing Authority, No Opt. Call A- 407,416
Pollution Control Revenue Bonds, PPL Electric Utilities
Corporation, Refunding Series 2008, 4.850%, 10/01/23
(Mandatory put 10/01/10)
895 Pennsylvania Higher Educational Facilities Authority, College No Opt. Call Aaa 1,050,882
Revenue Bonds, Ninth Series 1976, 7.625%, 7/01/15 (ETM)
225 Pennsylvania Higher Educational Facilities Authority, Revenue 3/10 at 100.00 BBB- (4) 234,569
Bonds, University of the Arts, Series 1999, 5.150%, 3/15/20
- RAAI Insured (ETM)
4,120 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 8/14 at 100.00 Baa2 4,308,365
Eighteenth Series 2004, 5.000%, 8/01/15 - AMBAC Insured
1,535 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Twelfth No Opt. Call Aaa 1,931,859
Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
250 Philadelphia Hospitals and Higher Education Facilities 11/09 at 100.00 BBB 250,168
Authority, Pennsylvania, Hospital Revenue Bonds, Temple
University Hospital, Series 1993A, 6.625%, 11/15/23
1,085 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call A1 1,187,847
General Obligation Bonds, Series 2006B, 5.000%, 9/01/12 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,510 Total Pennsylvania 9,371,106
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.6%
1,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 8/26 at 100.00 A+ 765,450
Bonds, First Subordinate Series 2009A, 0.000%, 8/01/32
------------------------------------------------------------------------------------------------------------------------------------
12 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.7%
Rhode Island Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed Bonds, Series 2002A:
$ 160 6.125%, 6/01/32 6/12 at 100.00 BBB $ 148,282
725 6.250%, 6/01/42 6/12 at 100.00 BBB 718,932
------------------------------------------------------------------------------------------------------------------------------------
885 Total Rhode Island 867,214
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 5.9%
750 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 794,138
Purchase Revenue Bonds, Securing Assets for Education,
Series 2003, 5.250%, 12/01/19
1,540 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call Baa1 (4) 2,058,764
Revenue Bonds, Series 1991, 6.750%, 1/01/19 - FGIC Insured
(ETM)
2,835 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call Baa1 3,464,738
Revenue Bonds, Series 1991, 6.750%, 1/01/19 - FGIC Insured
5 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A3 (4) 5,682
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.625%, 11/15/30 (Pre-refunded 11/15/12)
20 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A- 20,304
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002B, 5.625%, 11/15/30
865 South Carolina JOBS Economic Development Authority, Hospital No Opt. Call Baa2 (4) 901,763
Revenue Bonds, Palmetto Health Alliance, Series 2000A,
7.000%, 12/15/10 (ETM)
325 Tobacco Settlement Revenue Management Authority, South 5/12 at 100.00 BBB (4) 341,955
Carolina, Tobacco Settlement Asset-Backed Bonds, Series
2001B, 6.000%, 5/15/22 (Pre-refunded 5/15/12)
------------------------------------------------------------------------------------------------------------------------------------
6,340 Total South Carolina 7,587,344
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.8%
1,000 South Dakota Health and Educational Facilities Authority, 5/17 at 100.00 AA- 1,018,280
Revenue Bonds, Sanford Health, Series 2007, 5.000%, 11/01/27
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 2.1%
Shelby County Health, Educational and Housing Facilities
Board, Tennessee, Hospital Revenue Bonds, Methodist Healthcare,
Series 2002:
750 6.000%, 9/01/17 (Pre-refunded 9/01/12) 9/12 at 100.00 N/R (4) 854,708
1,250 6.000%, 9/01/17 (Pre-refunded 9/01/12) 9/12 at 100.00 N/R (4) 1,424,513
400 The Tennessee Energy Acquisition Corporation, Gas Revenue No Opt. Call BB+ 424,752
Bonds, Series 2006A, 5.000%, 9/01/13
------------------------------------------------------------------------------------------------------------------------------------
2,400 Total Tennessee 2,703,973
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 6.7%
1,055 Austin, Texas, General Obligation Bonds, Series 2004, 5.000%, 9/14 at 100.00 AAA 1,189,903
9/01/20 - NPFG Insured
565 Bexar County Housing Finance Corporation, Texas, FNMA No Opt. Call AAA 596,753
Guaranteed Multifamily Housing Revenue Bonds, Villas
Sonterra Apartments Project, Series 2007A, 4.700%, 10/01/15
(Alternative Minimum Tax)
25 Brazos River Authority, Texas, Collateralized Pollution No Opt. Call CCC 15,791
Control Revenue Bonds, Texas Utilities Electric Company,
Series 2003D, 5.400%, 10/01/29 (Mandatory put 10/01/14)
2,000 Brazos River Authority, Texas, Collateralized Revenue 6/14 at 100.00 BBB+ 1,960,680
Refunding Bonds, CenterPoint Energy Inc., Series 2004B,
4.250%, 12/01/17 - FGIC Insured
500 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 440,495
Refunding Bonds, TXU Electric Company, Series 2001C,
5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative
Minimum Tax)
15 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call CCC 10,971
Refunding Bonds, TXU Energy Company LLC, Series 2003A,
6.750%, 4/01/38 (Mandatory put 4/01/13) (Alternative
Minimum Tax)
1,875 Denton Independent School District, Denton County, Texas, 8/16 at 100.00 AAA 2,128,144
General Obligation Bonds, Series 2006, 5.000%, 8/15/20
10 Galveston Property Finance Authority Inc., Texas, Single 3/10 at 100.00 Caa1 9,849
Family Mortgage Revenue Bonds, Series 1991A, 8.500%, 9/01/11
300 Kerrville Health Facilities Development Corporation, Texas, No Opt. Call BBB- 282,990
Revenue Bonds, Sid Peterson Memorial Hospital Project,
Series 2005, 5.125%, 8/15/26
325 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 343,314
Refunding Bonds, Series 2008, 5.750%, 1/01/38
Nuveen Investments 13
NIM | Nuveen Select Maturities Municipal Fund (continued)
| Portfolio of Investments September 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 25 Sabine River Authority, Texas, Pollution Control Revenue No Opt. Call CCC $ 22,025
Bonds, TXU Energy Company LLC Project, Series 2001B,
5.750%, 5/01/30 (Mandatory put 11/01/11) (Alternative
Minimum Tax)
1,500 Texas Municipal Gas Acquisition and Supply Corporation I, Gas 1/10 at 100.00 A 1,149,375
Supply Revenue Bonds, Series 2006B, 0.750%, 12/15/17
270 Tri-County Mental Health and Retardation Center, Texas, 3/10 at 100.00 AAA 275,311
Revenue Bonds, Facilities Acquisition Program, Series
1995E, 6.500%, 3/01/15 - FSA Insured
160 Weslaco Health Facilities Development Corporation, Texas, 6/12 at 100.00 N/R (4) 173,758
Hospital Revenue Bonds, Knapp Medical Center, Series 2002,
6.000%, 6/01/17 (Pre-refunded 6/01/12)
------------------------------------------------------------------------------------------------------------------------------------
8,625 Total Texas 8,599,359
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.5%
680 Bountiful, Davis County, Utah, Hospital Revenue Refunding No Opt. Call N/R 681,414
Bonds, South Davis Community Hospital Project, Series 1998,
6.000%, 12/15/10
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.2%
250 Virginia College Building Authority, Educational Facilities 1/10 at 100.50 BBB- 251,393
Revenue Refunding Bonds, Marymount University, Series 1998,
5.100%, 7/01/18 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 0.7%
295 Washington Public Power Supply System, Revenue Refunding No Opt. Call Aaa 378,641
Bonds, Nuclear Project 3, Series 1989B, 7.125%, 7/01/16 -
NPFG Insured
495 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 507,434
Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%,
6/01/26
------------------------------------------------------------------------------------------------------------------------------------
790 Total Washington 886,075
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.8%
Badger Tobacco Asset Securitization Corporation, Wisconsin,
Tobacco Settlement Asset-Backed Bonds, Series 2002:
570 6.125%, 6/01/27 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 625,495
1,480 6.375%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,671,897
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 7/11 at 100.00 A- 1,025,440
Bonds, Agnesian Healthcare Inc., Series 2001, 6.000%,
7/01/21
1,150 Wisconsin Health and Educational Facilities Authority, Revenue 2/10 at 100.00 N/R 1,151,415
Bonds, Aurora Health Care Inc., Series 1999A, 5.500%,
2/15/20 - ACA Insured
Wisconsin Health and Educational Facilities Authority, Revenue
Bonds, Wheaton Franciscan Healthcare System, Series 2006:
200 5.250%, 8/15/18 8/16 at 100.00 BBB+ 200,102
180 5.250%, 8/15/34 8/16 at 100.00 BBB+ 162,657
------------------------------------------------------------------------------------------------------------------------------------
4,580 Total Wisconsin 4,837,006
------------------------------------------------------------------------------------------------------------------------------------
$ 125,955 Total Long-Term Investments (cost $121,082,706) - 98.4% 125,596,848
=============-----------------------------------------------------------------------------------------------------------------------
14 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.3%
$ 366 State Street Bank Euro Dollar Time Deposit, 0.010%, 10/01/09 N/A N/A $ 366,110
=============-----------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $366,110) 366,110
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $121,448,816) - 98.7% 125,962,958
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 1,619,464
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 127,582,422
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets.
(2) 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. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
N/A Not applicable.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
Nuveen Investments 15
| Statement of
| Assets & Liabilities September 30, 2009 (Unaudited)
--------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $121,448,816) $ 125,962,958
Receivables:
Interest 1,929,206
Investments sold 201,063
Other assets 3,305
--------------------------------------------------------------------------------
Total assets 128,096,532
--------------------------------------------------------------------------------
LIABILITIES
Dividends payable 413,941
Accrued expenses:
Management fees 50,946
Other 49,223
--------------------------------------------------------------------------------
Total liabilities 514,110
--------------------------------------------------------------------------------
Net assets $ 127,582,422
================================================================================
Shares outstanding 12,409,256
================================================================================
Net asset value per share outstanding $ 10.28
================================================================================
NET ASSETS CONSIST OF:
--------------------------------------------------------------------------------
Shares, $.01 par value per share $ 124,093
Paid-in surplus 138,456,082
Undistributed (Over-distribution of) net investment income (2,129)
Accumulated net realized gain (loss) from investments (15,509,766)
Net unrealized appreciation (depreciation) of investments 4,514,142
--------------------------------------------------------------------------------
Net assets $ 127,582,422
================================================================================
Authorized shares Unlimited
================================================================================
See accompanying notes to financial statements.
16 Nuveen Investments
| Statement of
| Operations Six Months Ended September 30, 2009 (Unaudited)
--------------------------------------------------------------------------------
INVESTMENT INCOME $ 3,097,227
--------------------------------------------------------------------------------
EXPENSES
Management fees 306,096
Shareholders' servicing agent fees and expenses 4,206
Custodian's fees and expenses 13,390
Trustees' fees and expenses 1,873
Professional fees 6,874
Shareholders' reports - printing and mailing expenses 18,418
Stock exchange listing fees 4,627
Investor relations expense 4,988
Other expenses 2,494
--------------------------------------------------------------------------------
Total expenses before custodian fee credit 362,966
Custodian fee credit (23)
--------------------------------------------------------------------------------
Net expenses 362,943
--------------------------------------------------------------------------------
Net investment income 2,734,284
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 29,287
Change in net unrealized appreciation (depreciation)
of investments 7,347,383
--------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 7,376,670
--------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $ 10,110,954
================================================================================
See accompanying notes to financial statements.
Nuveen Investments 17
| Statement of
| Changes in Net Assets (Unaudited)
SIX MONTHS YEAR
ENDED ENDED
9/30/09 3/31/09
-----------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,734,284 $ 5,378,446
Net realized gain (loss) from investments 29,287 (169,721)
Change in net unrealized appreciation (depreciation) of investments 7,347,383 (4,677,263)
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 10,110,954 531,462
-----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (2,605,369) (5,412,105)
-----------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (2,605,369) (5,412,105)
-----------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from shares issued to shareholders due to reinvestment of 65,327 60,823
distributions
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to shares from capital 65,327 60,823
share transactions
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 7,570,912 (4,819,820)
Net assets at the beginning of period 120,011,510 124,831,330
-----------------------------------------------------------------------------------------------------------------
Net assets at the end of period $ 127,582,422 $ 120,011,510
=================================================================================================================
Undistributed (Over-distribution of) net investment income at the end of $ (2,129) $ (131,044)
period
=================================================================================================================
See accompanying notes to financial statements.
18 Nuveen Investments
| Notes to
| Financial Statements(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The fund covered in this report and its corresponding New York Stock Exchange
symbol is Nuveen Select Maturities Municipal Fund (NIM) (the "Fund"). The Fund
is registered under the Investment Company Act of 1940, as amended, as a
closed-end, management investment company.
The Fund seeks to provide current income exempt from regular federal income tax,
consistent with the preservation of capital by investing in a investment-grade
quality portfolio of municipal obligations with intermediate characteristics. In
managing its portfolio, the Fund has purchased municipal obligations having
remaining effective maturities of no more than fifteen years with respect to 80%
of its total assets that, in the opinion of Nuveen Asset Management (the
"Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. ("Nuveen"),
represent the best value in terms of the balance between yield and capital
preservation currently available from the intermediate sector of the municipal
market. The Adviser will actively monitor the effective maturities of the Fund's
investments in response to prevailing market conditions, and will adjust its
portfolio consistent with its investment policy of maintaining an average
effective remaining maturity of twelve years or less.
In June 2009, the Financial Accounting Standards Board (FASB) established the
FASB Accounting Standards Codification(TM) (the "Codification") as the single
source of authoritative accounting principles recognized by the FASB in the
preparation of financial statements in conformity with generally accepted
accounting principles (GAAP). The Codification supersedes existing
non-grandfathered, non-SEC accounting and reporting standards. The Codification
did not change GAAP but rather organized it into a hierarchy where all guidance
within the Codification carries an equal level of authority. The Codification
became effective for financial statements issued for interim and annual periods
ending after September 15, 2009. The Codification did not have a material effect
on the Fund's financial statements.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements in accordance with US
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in the Fund's investment portfolio are provided by
a pricing service approved by the Fund's Board of Trustees. When market price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service or, in the absence of a pricing service for a
particular investment, the Board of Trustees of the Fund, or its designee, may
establish fair value using a wide variety of market data including yields or
prices of investments of comparable quality, type of issue, coupon, maturity and
rating, market quotes or indications of value from security dealers, evaluations
of anticipated cash flows or collateral, general market conditions and other
information and analysis, including the obligor's credit characteristics
considered relevant. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term investments are valued at
amortized cost, which approximates value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Fund has instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At September 30, 2009, the
Fund had no such outstanding purchase commitments.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Income Taxes
The Fund intends to distribute substantially all of its net investment income
and net capital gains to shareholders and to otherwise comply with the
requirements of Subchapter M of the Internal Revenue Code applicable to
regulated investment companies. Therefore, no federal income tax provision is
required. Furthermore, the Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal and
designated state income taxes, to retain such tax-exempt status when distributed
to shareholders of the Fund. Net realized capital gains and ordinary income
distributions paid by the Fund are subject to federal taxation.
Nuveen Investments 19
| Notes to
| Financial Statements (Unaudited) (continued)
For all open tax years and all major taxing jurisdictions, management of the
Fund has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. Open tax years are those
that are open for examination by taxing authorities (i.e., generally the last
four tax year ends and the interim tax period since then). Furthermore,
management of the Fund is also not aware of any tax positions for which it is
reasonably possible that the total amounts of unrecognized tax benefits will
significantly change in the next twelve months.
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 at least annually. Furthermore, capital
gains are distributed only to the extent they exceed available capital loss
carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount, 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 US generally accepted
accounting principles.
Derivative Instrument
The Fund is authorized to invest in certain derivative instruments including
forwards, futures, options and swap contracts. Although the Fund is authorized
to invest in such derivative instruments, and may do so in the future, it did
not make any such investments during the six months ended September 30, 2009.
Zero Coupon Securities
The Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolio of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
Custodian Fee Credit
The Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on the Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which the Fund overdraws its account at the custodian bank.
Indemnifications
Under the Fund's organizational documents, its Officers and Trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Fund. In addition, in the normal course of business, the Fund
enters into contracts that provide general indemnifications to other parties.
The Fund's maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Fund that have not yet
occurred. However, the Fund has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with US generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets from operations during the reporting period. Actual results may differ
from those estimates.
2. FAIR VALUE MEASUREMENTS
In determining the value of the Fund's investments various inputs are used.
These inputs are summarized in the three broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 - Significant unobservable inputs (including management's
assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities. The following is a
summary of the Fund's fair value measurements as of September 30, 2009:
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 125,596,848 $ -- $ 125,596,848
Short-Term Investments 366,110 -- -- 366,110
-----------------------------------------------------------------------------------------------
Total $ 366,110 $ 125,596,848 $ -- $ 125,962,958
===============================================================================================
20 Nuveen Investments
3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
During the current fiscal period, the Fund adopted amendments to authoritative
guidance under GAAP on disclosures about derivative instruments and hedging
activities. This guidance is intended to enhance financial statement disclosures
for derivative instruments and hedging activities and enable investors to better
understand: a) how and why a fund uses derivative instruments; b) how derivative
instruments are accounted for; and c) how derivative instruments affect a fund's
financial position, results of operations and cash flows, if any. The Fund
records derivative instruments at fair value with changes in fair value
recognized on the Statement of Operations, when applicable. Even though the
Fund's investments in derivatives may represent economic hedges, under this
guidance they are considered to be non-hedge transactions for financial
reporting purposes. The Fund did not invest in derivative instruments during the
six months ended September 30, 2009.
4. FUND SHARES
Share Repurchases
Transactions in shares were as follows:
SIX MONTHS YEAR
ENDED ENDED
9/30/09 3/31/09
--------------------------------------------------------------------------------
Shares issued to shareholders
due to reinvestment of distributions 6,617 6,233
Shares repurchased -- --
================================================================================
5. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments)
during the six months ended September 30, 2009, aggregated $3,313,338 and
$2,331,000, respectively.
6. 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 the timing differences in recognizing taxable market discount
and timing differences in recognizing certain gains and losses on investment
transactions. To the extent that differences arise that are permanent in nature,
such amounts are reclassified within the capital accounts on the Statement of
Assets and Liabilities presented in the annual report, based on their federal
tax basis treatment; temporary differences do not require reclassification.
Temporary and permanent differences do not impact the net asset value of the
Fund.
At September 30, 2009, the cost of investments was $121,364,494.
Gross unrealized appreciation and gross unrealized depreciation of investments
at September 30, 2009, were as follows:
--------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 6,469,259
Depreciation (1,870,795)
--------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ 4,598,464
================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at March 31, 2009, the Fund's last tax year end,
were as follows:
--------------------------------------------------------------------------------
Undistributed net tax-exempt income * $ 216,604
Undistributed net ordinary income ** --
Undistributed net long-term capital gains --
================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on March 3, 2009, paid on April 1, 2009.
** 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 Fund's last tax year ended
March 31, 2009, was designated for purposes of the dividends paid deduction as
follows:
--------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 5,430,482
Distributions from net ordinary income ** --
Distributions from net long-term capital gains --
================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
Nuveen Investments 21
| Notes to
| Financial Statements (Unaudited) (continued)
At March 31, 2009, the Fund's last tax year end, the Fund had unused capital
loss carryforwards available for federal income tax purposes to be applied
against future capital gains, if any. If not applied, the carryforwards will
expire as follows:
--------------------------------------------------------------------------------
Expiration:
March 31, 2010 $ 14,922
March 31, 2011 6,523,386
March 31, 2012 8,737,799
March 31, 2013 4,977
March 31, 2014 14,448
March 31, 2015 11,084
March 31, 2016 44,763
March 31, 2017 148,403
--------------------------------------------------------------------------------
Total $ 15,499,782
================================================================================
The Fund elected to defer net realized losses from investments incurred from
November 1, 2008 through March 31, 2009, the Fund's last tax year end,
("post-October losses") in accordance with federal income tax regulations.
Post-October capital losses of $24,024 are treated as having arisen on the first
day of the current fiscal year.
7. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within the Fund. This pricing structure enables Nuveen fund shareholders to
benefit from growth in the assets within each individual fund as well as from
growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, is based upon the average daily net
assets of the Fund as follows:
AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .3000%
For the next $125 million .2875
For the next $250 million .2750
For the next $500 million .2625
For the next $1 billion .2500
For net assets over $2 billion .2375
================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund net assets managed as stated in the following
table. As of September 30, 2009, the complex-level fee rate was .1901%.
22 Nuveen Investments
The complex-level fee schedule is as follows:
COMPLEX-LEVEL NET ASSET BREAKPOINT
LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily managed net assets of all Nuveen
funds, with such daily managed net assets defined separately for each fund
in its management agreement, but excluding assets attributable to
investments in other Nuveen funds. For the complex-level and fund-level
fee components, daily managed net assets include assets managed by the
Adviser that are attributable to financial leverage. For these purposes,
financial leverage includes the funds use of preferred stock and
borrowings and investments in the residual interest certificates (also
called inverse floating rate securities) in tender option bond (TOB)
trusts, including the portion of assets held by the TOB trust that has
been effectively financed by the trust's issuance of floating rate
securities, subject to an agreement by the Adviser to limit the amount of
such assets for determining managed net assets in certain circumstances.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Fund pays no
compensation directly to those of its Trustees who are affiliated with the
Adviser or to its Officers, all of whom receive remuneration for their services
to the Fund from the Adviser or its affiliates. The Board of Trustees has
adopted a deferred compensation plan for independent Trustees that enables
Trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised funds.
8. SUBSEQUENT EVENTS
Distributions to Shareholders
The Fund declared a dividend distribution of $.0350 per share from its
tax-exempt net investment income which was paid on November 2, 2009, to
shareholders of record on October 15, 2009.
Evaluation Date
In May 2009, the FASB issued changes to authoritative guidance under GAAP for
subsequent events. This guidance requires an entity to recognize in the
financial statements the effects of all subsequent events that provide
additional evidence about conditions that existed at the date of the balance
sheet. This guidance is intended to establish general standards of accounting
and for disclosure of events that occur after the balance sheet date but before
financial statements are issued or are available to be issued. This guidance
requires the disclosure of the date through which an entity has evaluated
subsequent events and the basis for that date - that is, whether that date
represents the date the financial statements were issued or were available to be
issued. This guidance is effective for interim and annual periods ending after
June 15, 2009. The Fund has performed an evaluation of subsequent events through
November 25, 2009, which is the date the financial statements were issued.
Nuveen Investments 23
| Financial
| Highlights(Unaudited)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
----------------------------------- -------------------------------
NET
BEGINNING NET REALIZED/ NET ENDING ENDING
NET ASSET INVESTMENT UNREALIZED INVESTMENT CAPITAL NET ASSET MARKET
VALUE INCOME GAIN (LOSS) TOTAL INCOME GAINS TOTAL VALUE VALUE
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2010 (a) $ 9.68 $.22 $ .59 $.81 $(.21) $ -- $(.21) $10.28 $10.31
2009 10.07 .43 (.38) .05 (.44) -- (.44) 9.68 9.98
2008 10.19 .44 (.12) .32 (.44) -- (.44) 10.07 9.80
2007 10.15 .46 .05 .51 (.47) -- (.47) 10.19 9.94
2006 10.22 .48 (.07) .41 (.48) -- (.48) 10.15 9.95
2005 10.35 .49 (.14) .35 (.48) -- (.48) 10.22 9.30
=================================================================================================================================
24 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------
RATIOS TO AVERAGE
TOTAL RETURNS NET ASSETS
-------------------- -------------------------
BASED ON BASED ON ENDING NET PORTFOLIO
MARKET NET ASSET NET ASSETS INVESTMENT TURNOVER
VALUE* VALUE* (000) EXPENSES** INCOME RATE
---------------------------------------------------------------------------------------------------
Year Ended 3/31:
2010 (a) 5.50% 8.46% $127,582 .59%*** 4.43%*** 2%
2009 6.53 .52 120,012 .61 4.43 8
2008 3.18 3.18 124,831 .59 4.37 11
2007 4.75 5.10 126,316 .62 4.44 15
2006 12.21 4.02 125,857 .59 4.67 7
2005 (1.52) 3.44 126,645 .61 4.81 10
===================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Net Asset Value is the combination of changes in net
asset value, reinvested dividend income at net asset value and reinvested
capital gains distributions at net asset value, if any. The last dividend
declared in the period, which is typically paid on the first business day
of the following month, is assumed to be reinvested at the ending net
asset value. The actual reinvest price for the last dividend declared in
the period may often be based on the Fund's market price (and not its net
asset value), and therefore may be different from the price used in the
calculation. Total returns are not annualized.
** Expense ratios do not reflect the reduction of custodian fee credits
earned on the Fund's net cash on deposit with the custodian bank, where
applicable.
*** Annualized.
(a) For the six months ended September 30, 2009.
See accompanying notes to financial statements.
Nuveen Investments 25
Annual Investment Management Agreement Approval Process
The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in
substance, that each investment advisory agreement between a fund and its
investment adviser will continue in effect from year to year only if its
continuance is approved at least annually by the fund's board members, including
by a vote of a majority of the board members who are not parties to the advisory
agreement or "interested persons" of any parties (the "Independent Board
Members"), cast in person at a meeting called for the purpose of considering
such approval. In connection with such approvals, the fund's board members must
request and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. Accordingly, at a meeting held on May 27-29, 2009 (the "May
Meeting"), the Board of Trustees (the "Board," and each Trustee, a "Board
Member") of the Fund, including a majority of the Independent Board Members,
considered and approved the continuation of the advisory agreement (the
"Advisory Agreement") between the Fund and Nuveen Asset Management ("NAM") for
an additional one-year period. In preparation for their considerations at the
May Meeting, the Board also held a separate meeting on April 21-22, 2009 (the
"April Meeting"). Accordingly, the factors considered and determinations made
regarding the renewals by the Independent Board Members include those made at
the April Meeting.
In addition, in evaluating the Advisory Agreement, the Independent Board Members
reviewed a broad range of information relating to the Fund and NAM, including
absolute performance, fee and expense information for the Fund as well as
comparative performance, fee and expense information for a comparable peer group
of funds, the performance information of recognized and/or customized benchmarks
(as applicable) of the Fund, the profitability of Nuveen for its advisory
activities (which includes its wholly owned subsidiaries other than Winslow
Capital Management, Inc. ("Winslow Capital"), which was recently acquired in
December 2008), and other information regarding the organization, personnel, and
services provided by NAM. The Independent Board Members also met quarterly as
well as at other times as the need arose during the year and took into account
the information provided at such meetings and the knowledge gained therefrom.
Prior to approving the renewal of the Advisory Agreement, the Independent Board
Members reviewed the foregoing information with their independent legal counsel
and with management, reviewed materials from independent legal counsel
describing applicable law and their duties in reviewing advisory contracts, and
met with independent legal counsel in private sessions without management
present. The Independent Board Members considered the legal advice provided by
independent legal counsel and relied upon their knowledge of NAM, its services
and the Fund resulting from their meetings and other interactions throughout the
year and their own business judgment in determining the factors to be considered
in evaluating the Advisory Agreement. Each Board Member may have accorded
different weight to
26 Nuveen Investments
the various factors in reaching his or her conclusions with respect to the
Fund's Advisory Agreement. The Independent Board Members did not identify any
single factor as all-important or controlling. The Independent Board Members'
considerations were instead based on a comprehensive consideration of all the
information presented. The principal factors considered by the Board and its
conclusions are described below.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering renewal of the Advisory Agreement, the Independent Board Members
considered the nature, extent and quality of NAM's services, including advisory
services and administrative services. The Independent Board Members reviewed
materials outlining, among other things, NAM's organization and business; the
types of services that NAM or its affiliates provide and are expected to provide
to the Fund; the performance record of the Fund (as described in further detail
below); and any initiatives Nuveen had taken for the applicable fund product
line.
In reviewing the services provided and the initiatives undertaken during the
past year, the Independent Board Members recognized the severe market turmoil
experienced in the capital markets during recent periods, including sustained
periods of high volatility, credit disruption and government intervention. The
Independent Board Members considered NAM's efforts, expertise and other actions
taken to address matters as they arose that impacted the Fund. The Independent
Board Members recognized the role of the Investment Services group which, among
other things, monitors the various positions throughout the Nuveen fund complex
to identify and address any systematic risks. In addition, the Capital Markets
Committee of NAM provides a multi-departmental venue for developing new policies
to mitigate any risks. The Independent Board Members further recognized NAM's
continuous review of the Nuveen funds' investment strategies and mandates in
seeking to continue to refine and improve the investment process for the funds,
particularly in light of market conditions. With respect to closed-end funds
that issued auction rate preferred shares ("ARPs") or that otherwise utilize
leverage, the Independent Board Members noted, in particular, NAM's efforts in
refinancing the preferred shares of such funds frozen by the collapse of the
auction rate market and managing leverage during a period of rapid market
declines, particularly for the non-equity funds. Such efforts included
negotiating and maintaining the availability of bank loan facilities and other
sources of credit used for investment purposes or to satisfy liquidity needs,
liquidating portfolio securities during difficult times to meet leverage ratios,
and seeking alternative forms of debt and other leverage that may over time
reduce financing costs associated with ARPs and enable the funds that have
issued ARPs to restore liquidity to ARPs holders. The Independent Board Members
also noted Nuveen's continued commitment and efforts to keep investors and
financial advisers informed as to its progress with the ARPs through, among
other things, conference calls, emails, press releases, information posted on
its website, and telephone calls and in-person meetings with financial advisers.
In addition to the foregoing, the Independent Board Members also noted the
additional services that NAM or its affiliates provide to closed-end funds,
including, in particular, Nuveen's continued commitment to supporting the
secondary market for the common shares of its closed-end funds through a variety
of programs designed to raise investor and analyst awareness and understanding
Nuveen Investments 27
Annual Investment Management Agreement Approval Process (continued)
of closed-end funds. These efforts include maintaining an investor relations
program to provide timely information and education to financial advisers and
investors; providing advertising and marketing for the closed-end funds;
maintaining websites; and providing educational seminars.
As part of their review, the Independent Board Members also evaluated the
background, experience and track record of NAM's investment personnel. In this
regard, the Independent Board Members considered any changes in the personnel,
and the impact on the level of services provided to the Fund, if any. The
Independent Board Members also reviewed information regarding portfolio manager
compensation arrangements to evaluate NAM's ability to attract and retain high
quality investment personnel, preserve stability, and reward performance but not
provide an incentive for taking undue risks.
In addition to advisory services, the Independent Board Members considered the
quality of administrative services provided by NAM and its affiliates including
product management, fund administration, oversight of service providers,
shareholder services, administration of Board relations, regulatory and
portfolio compliance and legal support. Given the importance of compliance, the
Independent Board Members considered NAM's compliance program, including the
report of the chief compliance officer regarding the Fund's compliance policies
and procedures.
Based on their review, the Independent Board Members found that, overall, the
nature, extent and quality of services provided (and expected to be provided) to
the Fund under the Advisory Agreement were satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUND AND NAM
The Board considered the investment performance of the Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives (the "Performance Peer Group") based on data
provided by an independent provider of mutual fund data as well as recognized
and/or customized benchmarks (as applicable). The Independent Board Members
reviewed performance information including, among other things, total return
information compared with the Fund's Performance Peer Group and recognized
and/or customized benchmarks (as applicable) for the quarter-, one-, three- and
five-year periods ending December 31, 2008 and for the same periods ending March
31, 2009. The Independent Board Members also reviewed performance information of
the Nuveen municipal funds managed by NAM in the aggregate ranked by peer group
and the performance of such funds, in the aggregate, relative to their
benchmark. This information supplemented the Fund performance information
provided to the Board at each of its quarterly meetings.
In comparing a fund's performance with that of its Performance Peer Group, the
Independent Board Members took into account that the closest Performance Peer
Group in certain instances may not adequately reflect the respective fund's
investment objectives and strategies thereby hindering a meaningful comparison
of the fund's performance with that of the Performance Peer Group. The
Independent Board Members further considered the performance of the Fund in the
context of the volatile market conditions during the past year, and their impact
on various asset classes and the portfolio management of the Fund.
28 Nuveen Investments
Based on their review and factoring in the severity of market turmoil in 2008,
the Independent Board Members determined that the Fund's investment performance
over time had been satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
The Board evaluated the management fees and expenses of the Fund
reviewing, among other things, the Fund's gross management fees, net
management fees and total expense ratios (before and after expense
reimbursements and/or waivers) in absolute terms as well as compared to
the fee and expenses of a comparable universe of unaffiliated funds based
on data provided by an independent fund data provider (the "Peer
Universe") and in certain cases, to a more focused subset of funds in the
Peer Universe (the "Peer Group").
The Independent Board Members further reviewed data regarding the
construction of the applicable Peer Universe and Peer Group. In reviewing
the comparisons of fee and expense information, the Independent Board
Members took into account that in certain instances various factors such
as the asset level of a fund relative to peers, the size and particular
composition of the Peer Universe or Peer Group, the investment objectives
of the peers, expense anomalies, changes in the funds comprising the Peer
Universe or Peer Group from year to year, levels of reimbursement and the
timing of information used may impact the comparative data, thereby
limiting the ability to make a meaningful comparison. In addition, the
Independent Board Members considered, among other things, the differences
in the use and type of leverage compared to the peers. In reviewing the
fee schedule for the Fund, the Independent Board Members also considered
the fund-level and complex-wide breakpoint schedules (described in further
detail below) and any fee waivers and reimbursements provided by Nuveen
(applicable, in particular, for certain closed-end funds launched since
1999).
Based on their review of the fee and expense information provided, the
Independent Board Members determined that the Fund's management fees and
net total expense ratio were reasonable in light of the nature, extent and
quality of services provided to the Fund.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Independent Board Members further reviewed information regarding the
nature of services and fee rates offered by NAM to other clients. Such
other clients include NAM's municipal separately managed accounts. In
evaluating the comparisons of fees, the Independent Board Members noted
that the fee rates charged to the Fund and other clients vary, among other
things, because of the different services involved and the additional
regulatory and compliance requirements associated with registered
investment companies, such as the Fund. Accordingly, the Independent Board
Members considered the differences in the product types, including, but
not limited to, the services provided, the structure and operations,
product distribution and costs thereof, portfolio investment policies,
investor profiles, account sizes and regulatory requirements. The
Independent Board Members noted, in particular, that the range of services
provided to the Fund (as discussed above) is much more extensive
Nuveen Investments 29
Annual Investment Management Agreement Approval Process (continued)
than that provided to separately managed accounts. Given the inherent
differences in the products, particularly the extensive services provided
to the Fund, the Independent Board Members believe such facts justify the
different levels of fees.
3. PROFITABILITY OF NUVEEN
In conjunction with its review of fees, the Independent Board Members also
considered the profitability of Nuveen for its advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers other than
Winslow Capital) and its financial condition. The Independent Board
Members reviewed the revenues and expenses of Nuveen's advisory activities
for the last two years, the allocation methodology used in preparing the
profitability data and an analysis of the key drivers behind the changes
in revenues and expenses that impacted profitability in 2008. In addition,
the Independent Board Members reviewed information regarding the financial
results of Nuveen for 2008 based on its Form 8-K filed on March 31, 2009.
The Independent Board Members noted this information supplemented the
profitability information requested and received during the year to help
keep them apprised of developments affecting profitability (such as
changes in fee waivers and expense reimbursement commitments). In this
regard, the Independent Board Members noted that they had also appointed
an Independent Board Member as a point person to review and keep them
apprised of changes to the profitability analysis and/or methodologies
during the year. The Independent Board Members also considered Nuveen's
revenues for advisory activities, expenses, and profit margin compared to
that of various unaffiliated management firms with similar amounts of
assets under management and relatively comparable asset composition
prepared by Nuveen.
In reviewing profitability, the Independent Board Members recognized the
subjective nature of determining profitability which may be affected by
numerous factors including the allocation of expenses. Further, the
Independent Board Members recognized the difficulties in making
comparisons as the profitability of other advisers generally is not
publicly available and the profitability information that is available for
certain advisers or management firms may not be representative of the
industry and may be affected by, among other things, the adviser's
particular business mix, capital costs, types of funds managed and expense
allocations. Notwithstanding the foregoing, the Independent Board Members
reviewed Nuveen's methodology and assumptions for allocating expenses
across product lines to determine profitability. In reviewing
profitability, the Independent Board Members recognized Nuveen's
investment in its fund business.
Based on their review, the Independent Board Members concluded that
Nuveen's level of profitability for its advisory activities was reasonable
in light of the services provided.
In evaluating the reasonableness of the compensation, the Independent
Board Members also considered other amounts paid to NAM by the Fund as
well as any indirect benefits (such as soft dollar arrangements, if any)
NAM and its affiliates receive, or are expected to receive, that are
directly attributable to the management of the Fund, if any. See Section E
below for additional information on indirect benefits NAM may receive as a
result of its relationship with the Fund. Based on their
30 Nuveen Investments
review of the overall fee arrangements of the Fund, the Independent Board
Members determined that the advisory fees and expenses of the Fund were
reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Independent Board Members have
recognized the potential benefits resulting from the costs of a fund being
spread over a larger asset base, although economies of scale are difficult to
measure and predict with precision, particularly on a fund-by-fund basis. One
method to help ensure the shareholders share in these benefits is to include
breakpoints in the advisory fee schedule. Generally, management fees for funds
in the Nuveen complex are comprised of a fund-level component and a
complex-level component, subject to certain exceptions. Accordingly, the
Independent Board Members reviewed and considered the applicable fund-level
breakpoints in the advisory fee schedules that reduce advisory fees as asset
levels increase. In this regard, the Independent Board Members noted that
although closed-end funds may from time-to-time make additional share offerings,
the growth of their assets will occur primarily through the appreciation of such
funds' investment portfolio. While economies of scale result when costs can be
spread over a larger asset base, the Independent Board Members also recognized
that the asset levels generally declined in 2008 due to, among other things, the
market downturn. Accordingly, for funds with a reduction in assets under
management, advisory fee levels may have increased as breakpoints in the fee
schedule were no longer surpassed.
In addition to fund-level advisory fee breakpoints, the Board also considered
the Fund's complex-wide fee arrangement. Pursuant to the complex-wide fee
arrangement, the fees of the funds in the Nuveen complex generally are reduced
as the assets in the fund complex reach certain levels. The complex-wide fee
arrangement seeks to provide the benefits of economies of scale to fund
shareholders when total fund complex assets increase, even if assets of a
particular fund are unchanged or have decreased. The approach reflects the
notion that some of Nuveen's costs are attributable to services provided to all
its funds in the complex and therefore all funds benefit if these costs are
spread over a larger asset base. Generally, the complex-wide pricing reduces
Nuveen's revenue because total complex fund assets have consistently grown in
prior years. As noted, however, total fund assets declined in 2008 resulting in
a smaller downward adjustment of revenues due to complex-wide pricing compared
to the prior year.
Based on their review, the Independent Board Members concluded that the
breakpoint schedules and complex-wide fee arrangement were acceptable and
reflect economies of scale to be shared with shareholders when assets under
management increase.
E. INDIRECT BENEFITS
In evaluating fees, the Independent Board Members received and considered
information regarding potential "fall out" or ancillary benefits NAM or its
affiliates may receive as a result of its relationship with the Fund. In this
regard, the Independent Board Members considered revenues received by affiliates
of NAM for serving as agent at Nuveen's trading desk.
Nuveen Investments 31
Annual Investment Management Agreement Approval Process (continued)
In addition to the above, the Independent Board Members considered whether NAM
received any benefits from soft dollar arrangements whereby a portion of the
commissions paid by the Fund for brokerage may be used to acquire research that
may be useful to NAM in managing the assets of the Fund and other clients. The
Independent Board Members noted that NAM does not currently have any soft dollar
arrangements; however, to the extent certain bona fide agency transactions that
occur on markets that traditionally trade on a principal basis and riskless
principal transactions are considered as generating "commissions," NAM intends
to comply with the applicable safe harbor provisions.
Based on their review, the Independent Board Members concluded that any indirect
benefits received by NAM as a result of its relationship with the Fund were
reasonable and within acceptable parameters.
F. OTHER CONSIDERATIONS
The Independent Board Members did not identify any single factor discussed
previously as all-important or controlling. The Board Members, including the
Independent Board Members, unanimously concluded that the terms of the Advisory
Agreement are fair and reasonable, that NAM's fees are reasonable in light of
the services provided to the Fund and that the Advisory Agreement be renewed.
32 Nuveen Investments
Reinvest Automatically Easily and Conveniently
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End 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
greater of the net asset value or 95% of 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. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. 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 the shares may increase
before purchases are completed, the average purchase price
Nuveen Investments 33
Reinvest Automatically Easily and Conveniently (continued)
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.
FLEXIBLE
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.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
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.
34 Nuveen Investments
Glossary of Terms Used in this Report
o AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed", with current holders receiving a
formula-based interest rate until the next scheduled auction.
o 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 that would have been necessary each year
to equal the investment's actual cumulative performance (including change
in NAV or market price and reinvested dividends and capital gains
distributions, if any) over the time period being considered.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (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 unless an escrow account has been
established to redeem the bond before maturity.
o DURATION: Duration is a measure of the expected period over which a bond's
principal and interest will be paid, and consequently is a measure of the
sensitivity of a bond's or bond Fund's value to changes when market
interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates
change.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o NET ASSET VALUE (NAV): A Fund's NAV per share 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.
o PRE-REFUNDING: Pre-refunding, also known as advanced refundings or
refinancings, is a procedure used by state and local governments to
refinance municipal bonds to lower interest expenses. The issuer sells new
bonds with a lower yield and uses the proceeds to buy U.S. Treasury
securities, the interest from which is used to make payments on the
higher-yielding bonds. Because of this collateral, pre-refunding generally
raises a bond's credit rating and thus its value.
o 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.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest
coupon to its holders during the life of the bond. Tax-exempt income to
the holder of the bond comes from accretion of the difference between the
original purchase price of the bond at issuance and the par value of the
bond at maturity and is effectively paid at maturity. The market prices of
zero coupon bonds generally are more volatile than the market prices of
bonds that pay interest periodically.
Nuveen Investments 35
Notes
36 Nuveen Investments
Other Useful Information
BOARD OF TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Company
Boston, MA
TRANSFER AGENT AND SHAREHOLDER SERVICES
State Street Bank & Trust
Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) the Fund's quarterly portfolio of investments, (ii)
information regarding how the Fund voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2009, and (iii) a
description of the policies and procedures that the Fund used to determine how
to vote proxies relating to portfolio securities without charge, upon request,
by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website
at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
The Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
The Fund has filed with the SEC the certification of its Chief Executive Officer
and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.
SHARE INFORMATION
The Fund intends to repurchase shares of its own common stock in the future at
such times and in such amounts as is deemed advisable. During the period covered
by this report, the Fund did not repurchase any of its common shares.
Any future repurchases will be reported to shareholders in the next annual or
semi-annual report.
Nuveen Investments 37
Nuveen Investments:
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.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. Nuveen Investments
markets its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony,
Tradewinds and Winslow Capital. In total, the Company managed $141 billion of
assets on September 30, 2009.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest. Be sure to obtain a
prospectus, where applicable. Investors should consider the investment objective
and policies, risk considerations, charges and expenses of the Fund carefully
before investing. The prospectus contains this and other information relevant to
an investment in the Fund. For a prospectus, please contact your securities
representative or NUVEEN INVESTMENTS, 333 W. WACKER DR., CHICAGO, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
Distributed by
Nuveen Investments, LLC It's not what you earn,
333 West Wacker Drive it's what you keep.(R)
Chicago, IL 60606
www.nuveen.com
ESA-A-0909D
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 to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
(a) See Portfolio of Investments in Item 1.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board of Directors or Trustees
implemented after the registrant last provided disclosure in response to
this Item.
ITEM 11. 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 second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(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 to
this filing.
(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 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See
Ex-99.CERT attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(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 1940 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: See 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 Select Maturities Municipal Fund
-----------------------------------------------------------
By (Signature and Title) /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
(Vice President and Secretary)
Date: December 7, 2009
-------------------------------------------------------------------
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 7, 2009
-------------------------------------------------------------------
By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: December 7, 2009
-------------------------------------------------------------------