SEMIANNUAL REPORT September 30, 2002
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
SELECT PORTFOLIOS
NXP
NXQ
NXR
NXC
NXN
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Chairman of the Board
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Dear
Shareholder
Once again, I am pleased to report that during the period covered by this report
your Nuveen Select Portfolio continued to meet its objective of providing
attractive tax-free monthly income. Detailed information on your investment's
performance can be found in the Portfolio Manager's Comments and on the
Performance Overview pages within this report. Please take the time to read
them.
In addition to providing regular tax-free income, we believe that a municipal
bond investment like your Nuveen Select Portfolio also may offer opportunities
to reduce the risk of your overall investment portfolio. This is because the
prices of municipal bonds may move differently than the prices of the common
stocks, mutual funds or other investments you may own. Since one part of your
portfolio may be going up when another is going down, portfolio diversification
may reduce your overall risk. Your financial advisor can explain the advantages
of portfolio diversification in more detail. I urge you to contact him or her
soon for more information on this important investment strategy.
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For more than 100 years, Nuveen has specialized in offering quality investments
such as these Nuveen Select Portfolios to those seeking to accumulate and
preserve wealth. Our commitment to careful research, constant surveillance and
judicious trading by our seasoned portfolio management team has never been
stronger, and our mission continues to be to assist you and your financial
advisor by offering the investment services and products that can help you meet
your financial objectives. We thank you for continuing to choose us as a partner
as you work toward that goal.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
November 15, 2002
1
Nuveen Select Portfolios
(NXP, NXQ, NXR, NXC, NXN)
Portfolio Manager's
Comments
Portfolio manager Tom Spalding discusses economic conditions, key investment
strategies, and the recent performance of the Select Portfolios. Tom, who has 26
years of investment management experience with Nuveen, has managed the
Portfolios since 1999.
WHAT WERE THE MAJOR FACTORS AFFECTING THE U.S. ECONOMY AND THE MUNICIPAL MARKET
DURING THIS REPORTING PERIOD?
In several fundamental respects, not much has changed since our last shareholder
report. We believe two of the most influential factors affecting the U.S.
economy and the municipal markets during this reporting period continued to be
the slow pace of the U.S. economic recovery and the Federal Reserve's
maintenance of short-term interest rates at 40-year lows. As noted in our last
report as well, the uncertain geopolitical climate that has followed the tragic
events of September 11, 2001, also has impacted the economy and the markets.
In the municipal market, the generally slow economic recovery of the past year
combined with the lack of inflationary pressures helped many bonds perform well.
Relatively low interest rate levels helped spur new municipal bond issuance
during the first nine months of 2002, resulting in an increase of 28% in new
municipal issuance at the national level when compared with January-September
2001. On the demand side, municipal bonds continued to be highly sought after by
individual investors looking for diversification, tax-free income, and an
alternative to a volatile stock market. Institutional investors, especially
traditional purchasers such as property/ casualty insurance companies, also have
been active buyers in the municipal market.
Over the past year, the economies of both California and New York have suffered
a general slowdown, with little job growth. New York has had to contend with a
weak securities industry and the direct aftermath of the September 11 attacks,
while California's growth remained hampered by an ailing technology sector and
the need to bring final resolution to the state's 2001 power problems. As tax
revenues have fallen, both California and New York have grappled with major
budgetary issues. Both states have approved fiscal year 2003 budgets that were
balanced by a combination of expense reductions, program cuts, and fund
transfers. Despite these factors, credit ratings for New York general obligation
debt remained intact at A2/AA/AA from Moody's, Standard & Poor's and Fitch,
respectively, with positive or stable outlooks from all three rating agencies.
Following a Moody's downgrade in November 2001, California's ratings have held
at A1/A+/AA. However, all three rating agencies maintain a negative outlook for
California due to concerns about budget issues and near-term liquidity. During
the first nine months of 2002, municipal supply in New York jumped 172% over
January-September 2001 levels. During the same period, California issuance rose
21% over 2001 levels.
2
HOW DID THE NUVEEN SELECT PORTFOLIOS PERFORM OVER THE TWELVE MONTHS ENDED
SEPTEMBER 30, 2002?
During the twelve months ended September 30, 2002, the Fed's policy of
maintaining short-term interest rates at their lowest levels since the early
1960s, combined with a relatively low rate of inflation, created a positive
total return environment for municipal bonds and bond funds. Individual results
for the Nuveen Select Portfolios, as well as for relevant indexes, are presented
in the accompanying table.
TOTAL RETURN LEHMAN LIPPER
MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2
------------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
9/30/02 EQUIVALENT3 9/30/02 9/30/02 9/30/02
------------------------------------------------------------------
NXP 5.65% 8.07% 7.08% 8.93% 6.88%
------------------------------------------------------------------
NXQ 5.47% 7.81% 5.86% 8.93% 6.88%
------------------------------------------------------------------
NXR 5.40% 7.71% 5.38% 8.93% 6.88%
------------------------------------------------------------------
NXC 4.82% 7.59% 6.60% 8.65% 10.38%
------------------------------------------------------------------
NXN 4.94% 7.60% 7.20% 9.10% 11.22%
------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
In a market characterized by rising bond values, funds with longer durations4
typically would be expected to perform better than funds and indexes with
shorter durations. As of September 30, 2002, the durations of the three national
Portfolios ranged from 4.50 to 5.41, compared with 7.83 for the Lehman Brothers
Municipal Bond Index, while NXC and NXN had durations of 5.64 and 5.39,
respectively, compared with 8.21 and 7.54 for the Lehman California and New York
Tax-Exempt Bond Indexes.
Much of the Portfolios' underperformance in comparison with these benchmarks can
be traced to their relatively short durations in a generally falling interest
rate environment. In addition, there were several other factors that had an
influence on the Portfolios' total returns over the reporting period, including
call exposure, the performance of insured versus uninsured bonds, and the
results achieved by individual bond holdings. For example, the national
Portfolios all hold airline-backed bonds issued for facilities at Chicago's
O'Hare International Airport, which were impacted negatively by the overall
decline in air travel over the past year.
HOW DID THE MARKET ENVIRONMENT AFFECT THE PORTFOLIOS' DIVIDENDS AND SHARE
PRICES?
Increased bond call exposure over the past several years, and the resulting
reinvestment in today's lower interest rate environment, led each Portfolio to
reduce its monthly dividend in September 2002. Over the next twelve months, the
number of bond calls and the interest rates at which we can reinvest the
proceeds of these calls will continue to exert an influence on the dividends of
the Nuveen Select Portfolios.
Given the equity market volatility of the past year, we believe that investors
have continued to evaluate their asset allocation plans and a number have made a
shift toward the balance offered by fixed-income investments. Over the period
covered by this report, the share prices of all of the Nuveen Select Portfolios
rose, while their NAVs remained relatively stable. As of September 30, 2002, NXC
had moved from trading at a discount to its common share net asset value to
trading at a premium, while the discounts on the remaining Portfolios, with the
exception of NXN, narrowed (see charts on individual Performance Overview
pages).
1 The total annual returns on common share net asset value for the national
Portfolios are compared with the total annual return of the Lehman Brothers
Municipal Bond Index, an un-leveraged index comprising a broad range of
investment-grade municipal bonds. The annual returns of NXC and NXN are
compared with those of the Lehman Tax-Exempt Bond Indexes for California
and New York, respectively. These un-leveraged indexes comprise a broad
range of municipal bonds within each of those states. Results for the
Lehman indexes do not reflect any expenses.
2 The total returns of the national Portfolios are compared with the average
annualized return of the 12 funds in the Lipper General and Insured
Unlever-aged Municipal Debt Funds category. NXC's total return is compared
with the average total return of the 22 funds in the Lipper California
Municipal Debt Funds category, while the comparison for NXN is based on the
average total return of the 14 funds in the Lipper New York Municipal Debt
Funds category. Portfolio and Lipper returns assume reinvestment of
dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen portfolio on
an after-tax basis. For the national Portfolios, the taxable-equivalent
yield is based on the portfolio's market yield on the indicated date and a
federal income tax rate of 30%, while the taxable-equivalent yields for NXC
and NXN are based on their market yields on the indicated date and combined
federal and state income tax rates of 36.5% and 35%, respectively.
4 Duration is a measure of a portfolio's NAV volatility in reaction to
interest rate movements.
3
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN SELECT PORTFOLIOS DURING THE
YEAR ENDED SEPTEMBER 30, 2002?
Over the twelve months ended September 30, 2002, our primary focus remained on
supporting the Portfolios' dividend-paying capabilities, managing their call
exposures and investing in regions and sectors that we believed represented good
values. Since each of the Portfolios has undergone a relatively modest amount of
portfolio turnover since its inception in 1992, each has seen its average
maturity shorten since its initial public offering. As noted, this has tended to
hold down total returns in a generally positive environment for municipal bonds.
With the recent shareholder vote that eliminated their termination dates and
allowed greater portfolio management flexibility, we have been looking
judiciously for opportunities to invest further out on the yield curve. We
believe this will help the Portfolios generate more current income, and also
will tend to lengthen their average maturities and durations which may enhance
dividend stability. In general, we have looked for bonds that we believed
offered strong values in the 20-year maturity range. We think the purchases
we've made in the past year, especially in bonds that were trading at par or
slight premiums, have already had a positive impact on the Portfolios' returns
and dividend-paying capabilities. This fundamental restructuring of each
Portfolio will continue as we head into 2003.
As of September 30, 2002, the transportation sector accounted for 15%-19% of the
investments in each Portfolio, with the exception of NXN, where education bonds
represented the largest investment. Over the past year, the national Portfolios
took advantage of opportunities to add to their transportation holdings,
including the purchase of insured bonds issued for the Las Vegas monorail
project. Our expectations are that the transportation sector will be a strong
performer in coming months.
Given the current geopolitical and economic climate, maintaining strong credit
quality remains a key goal of the Portfolios. All three of the national
Portfolios continued to offer excellent credit quality, with allocations of
bonds rated AAA/U.S. guaranteed and AA ranging from 71% to 81% as of September
30, 2002. As part of changes recently approved by shareholders, NXC and NXN have
selectively added some uninsured bonds. As of September 30, NXC had 17% of its
portfolio invested in AA, A, and BBB bonds, while NXN had allocated 15% to AA
bonds. The balance of these state Portfolios' investments are in insured and
AAA/U.S. guaranteed securities.
4
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THE NUVEEN SELECT
PORTFOLIOS IN PARTICULAR?
Over the next twelve months, our general outlook for the fixed-income markets
remains positive. We believe the U.S. economy is headed for an eventual
recovery, but one that may be slow to arrive and offer a slower rate of growth
than some are currently predicting. We also expect inflation and interest rates
to remain relatively low over the near term, while new municipal volume should
continue to be strong. Given California's and New York's continued need to
address budgetary imbalances, issuance is expected to remain heavy in both of
these states. We also expect demand for tax-exempt municipal bonds to remain
solid, as investors look for ways to rebalance their portfolios and reduce risk.
All five of the Nuveen Select Portfolios marked their 10-year anniversaries in
2002. The Portfolios are currently working their way past these milestones,
which often mark an increased exposure to bond calls. Potential calls for the
remainder of 2002 and 2003 range from 11% of NXN's portfolio to 42% in NXR. The
number of actual calls experienced by each Portfolio will depend largely on
market interest rates over the next 6 - 12 months. Our general approach has been
to hold higher-yielding bonds as long as possible. If the bonds are in fact
called, the anticipated increased volume of supply should provide opportunities
to reinvest the proceeds in bonds that can extend call protection and duration.
In the months ahead, we plan to fully utilize Nuveen's experience and research
expertise to focus on strategies that can add value for our shareholders. As
noted, we believe bonds in the 20-year range of the yield curve currently offer
excellent opportunities for price appreciation and provide yields that are close
to those of longer bonds, with greater liquidity. The heavy issuance anticipated
nationwide as well as in the California and New York markets should enhance our
ability to find attractive opportunities to implement these strategies and keep
the Portfolios fully invested. Overall, we believe the Nuveen Select Portfolios
continue to represent an important element of investors' long-range financial
programs, providing dependable tax-free income, diversification, and balance in
uncertain times.
5
Nuveen Select Tax-Free Income Portfolio
Performance
Overview As of September 30, 2002
NXP
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 64%
AA 17%
A 13%
BBB 6%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.45
--------------------------------------------------
Net Asset Value $15.17
--------------------------------------------------
Market Yield 5.65%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.07%
--------------------------------------------------
Net Assets ($000) $248,501
--------------------------------------------------
Average Effective Maturity (Years) 13.87
--------------------------------------------------
Average Duration 4.62
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/92)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 7.05% 7.08%
--------------------------------------------------
5-Year 4.73% 5.43%
--------------------------------------------------
10-Year 6.18% 6.66%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
U.S. Guaranteed 24%
--------------------------------------------------
Transportation 15%
--------------------------------------------------
Tax Obligation/Limited 13%
--------------------------------------------------
Healthcare 11%
--------------------------------------------------
Tax Obligation/General 10%
--------------------------------------------------
Bar Chart:
2001-2002 Monthly Tax-Free Dividends Per Share2
10/01 0.071
11/01 0.071
12/01 0.071
1/02 0.071
2/02 0.071
3/02 0.071
4/02 0.071
5/02 0.071
6/02 0.071
7/02 0.071
8/02 0.071
9/02 0.068
Line Chart:
Share Price Performance
10/1/01 14.7
14.2
14.04
14.2
14.3
14.32
14.1
14.02
14.1
13.52
13.55
13.63
13.8
14.05
14
14.17
14.1
14.3
14.38
14.32
14.4
14.28
14.34
14.09
13.88
13.85
14.08
13.95
14.05
13.94
14.12
14.05
14.2
14.3
14.38
14.5
14.37
14.25
14.4
14.58
14.63
14.74
14.46
14.86
14.79
14.82
14.09
14.14
14.23
14.3
14.27
9/30/02 14.25
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%.
2 The Fund also paid shareholders a capital gains distribution in December
2001 of $0.0230 per share.
6
Nuveen Select Tax-Free Income Portfolio 2
Performance
Overview As of September 30, 2002
NXQ
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 58%
AA 20%
A 12%
BBB 10%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.58
--------------------------------------------------
Net Asset Value $14.84
--------------------------------------------------
Market Yield 5.47%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.81%
--------------------------------------------------
Net Assets ($000) $261,350
--------------------------------------------------
Average Effective Maturity (Years) 14.44
--------------------------------------------------
Average Duration 4.50
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 5/92)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 10.25% 5.86%
--------------------------------------------------
5-Year 5.15% 5.18%
--------------------------------------------------
10-Year 6.39% 6.40%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
U.S. Guaranteed 23%
--------------------------------------------------
Transportation 18%
--------------------------------------------------
Healthcare 12%
--------------------------------------------------
Tax Obligation/Limited 9%
--------------------------------------------------
Utilities 9%
--------------------------------------------------
Bar Chart:
2001-2002 Monthly Tax-Free Dividends Per Share2
10/01 0.0695
11/01 0.0695
12/01 0.0695
1/02 0.0695
2/02 0.0695
3/02 0.0695
4/02 0.0695
5/02 0.0695
6/02 0.0695
7/02 0.0695
8/02 0.0695
9/02 0.0665
Line Chart:
Share Price Performance
10/1/01 14.45
14
13.94
14.08
14.13
14.19
13.86
13.86
13.9
13.43
13.72
13.2
13.51
13.67
13.69
13.84
13.73
14
14.04
13.78
13.75
13.78
13.74
13.6
13.35
13.66
13.79
13.66
13.63
13.5
13.61
13.72
13.77
13.65
14.09
14.06
13.8
14
14.11
14.43
14.37
14.34
14.12
14.43
14.28
14.16
14
14.2
14.07
14.18
14.3
9/30/02 14.48
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%.
2 The Fund also paid shareholders a capital gains distribution in December
2001 of $0.0169 per share.
7
Nuveen Select Tax-Free Income Portfolio 3
Performance
Overview As of September 30, 2002
NXR
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 47%
AA 24%
A 24%
BBB 5%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.11
--------------------------------------------------
Net Asset Value $14.48
--------------------------------------------------
Market Yield 5.40%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.71%
--------------------------------------------------
Net Assets ($000) $187,778
--------------------------------------------------
Average Effective Maturity (Years) 14.09
--------------------------------------------------
Average Duration 5.41
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 7/92)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 10.15% 5.38%
--------------------------------------------------
5-Year 5.67% 5.20%
--------------------------------------------------
10-Year 6.02% 6.40%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Utilities 18%
--------------------------------------------------
Transportation 16%
--------------------------------------------------
U.S. Guaranteed 15%
--------------------------------------------------
Healthcare 13%
--------------------------------------------------
Water and Sewer 8%
--------------------------------------------------
Bar Chart:
2001-2002 Monthly Tax-Free Dividends Per Share
10/01 0.0665
11/01 0.0665
12/01 0.0665
1/02 0.0665
2/02 0.0665
3/02 0.0665
4/02 0.0665
5/02 0.0665
6/02 0.0665
7/02 0.0665
8/02 0.0665
9/02 0.0635
Line Chart:
Share Price Performance
4/1/01 13.89
13.5
13.64
13.62
13.69
13.66
13.5
13.58
13.61
13.11
13.12
13.1
13.15
13.41
13.42
13.43
13.35
13.52
13.56
13.52
13.53
13.58
13.24
13.24
13.15
13.42
13.35
13.18
13.12
13.1
13.35
13.32
13.35
13.47
13.4
13.41
13.45
13.47
13.46
13.75
13.9
13.72
13.7
13.92
14
14.05
13.9
13.81
13.79
13.71
13.72
9/30/02 13.88
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%.
8
Nuveen California Select Tax-Free Income Portfolio
Performance
Overview As of September 30, 2002
NXC
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 83%
AA 2%
A 14%
BBB 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.19
--------------------------------------------------
Net Asset Value $14.94
--------------------------------------------------
Market Yield 4.82%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 6.89%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 7.59%
--------------------------------------------------
Net Assets ($000) $93,487
--------------------------------------------------
Average Effective Maturity (Years) 14.66
--------------------------------------------------
Average Duration 5.64
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 6/92)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 12.89% 6.60%
--------------------------------------------------
5-Year 6.18% 5.33%
--------------------------------------------------
10-Year 5.85% 6.35%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Transportation 19%
--------------------------------------------------
Tax Obligation/General 18%
--------------------------------------------------
Healthcare 16%
--------------------------------------------------
Tax Obligation/Limited 12%
--------------------------------------------------
Education and Civic Organizations 10%
--------------------------------------------------
2001-2002 Monthly Tax-Free Dividends Per Share2
10/01 0.064
11/01 0.064
12/01 0.064
1/02 0.064
2/02 0.064
3/02 0.064
4/02 0.064
5/02 0.064
6/02 0.064
7/02 0.064
8/02 0.064
9/02 0.061
Line Chart:
Share Price Performance
10/1/01 14.62
14.62
14.44
14.39
14.73
14.69
14.82
14.79
14.86
14.89
14.83
14.66
14.54
14.62
14.91
14.83
14.84
14.91
14.95
14.79
15
14.83
14.8
14.66
14.18
14.25
14.45
14.38
14.43
14.4
14.53
14.75
15
14.8
14.8
14.95
14.94
15.35
15.5
15.7
15.85
15
14.79
15.13
15.03
14.95
14.9
14.5
14.6
14.61
14.62
9/30/02 15.15
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 36.5%.
2 The Fund also paid shareholders a capital gains distribution in December
2001 of $0.0240 per share.
9
Nuveen New York Select Tax-Free Income Portfolio
Performance
Overview As of September 30, 2002
NXN
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 85%
AA 15%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.10
--------------------------------------------------
Net Asset Value $14.78
--------------------------------------------------
Market Yield 4.94%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.06%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 7.60%
--------------------------------------------------
Net Assets ($000) $57,728
--------------------------------------------------
Average Effective Maturity (Years) 16.42
--------------------------------------------------
Average Duration 5.39
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 6/92)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 7.95% 7.20%
--------------------------------------------------
5-Year 4.61% 5.34%
--------------------------------------------------
10-Year 5.05% 6.23%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Education and Civic Organizations 19%
--------------------------------------------------
U.S. Guaranteed 17%
--------------------------------------------------
Water and Sewer 14%
--------------------------------------------------
Long-Term Care 9%
--------------------------------------------------
Housing/Single Family 8%
--------------------------------------------------
2001-2002 Monthly Tax-Free Dividends Per Share
10/01 0.06
11/01 0.06
12/01 0.06
1/02 0.06
2/02 0.06
3/02 0.06
4/02 0.06
5/02 0.06
6/02 0.06
7/02 0.06
8/02 0.06
9/02 0.058
Line Chart:
Share Price Performance
10/01/01 14.05
13.96
13.82
13.85
13.98
14.09
14.1
14.07
14.21
14.01
13.95
13.75
13.92
14
14.11
13.95
14.02
14.15
14.24
14.27
14.32
14.16
14.04
13.97
13.77
13.76
13.64
13.56
13.5
13.7
13.71
13.6
13.68
13.68
13.7
13.85
13.97
13.95
13.95
14
14.3
14.1
13.97
13.8
13.9
13.81
13.91
13.75
13.9
13.95
14.08
9/30/02 14.08
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 35%.
10
Shareholder
Meeting Report
The Shareholder Meeting was held in Chicago, Illinois on July 31, 2002.
NXP NXQ NXR NXC NXN
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE TRUSTEES WAS REACHED AS FOLLOWS:
Common Common Common Common Common
Shares Shares Shares Shares Shares
====================================================================================================================================
James E. Bacon
For 15,096,960 16,492,186 12,234,673 5,917,428 3,776,760
Withhold 293,163 397,256 261,537 107,968 64,869
------------------------------------------------------------------------------------------------------------------------------------
Total 15,390,123 16,889,442 12,496,210 6,025,396 3,841,629
====================================================================================================================================
William E. Bennett
For 15,105,253 16,490,503 12,228,805 5,912,761 3,776,441
Withhold 284,870 398,939 267,405 112,635 65,188
------------------------------------------------------------------------------------------------------------------------------------
Total 15,390,123 16,889,442 12,496,210 6,025,396 3,841,629
====================================================================================================================================
Jack B. Evans
For 15,110,073 16,502,089 12,237,176 5,919,561 3,771,926
Withhold 280,050 387,353 259,034 105,835 69,703
------------------------------------------------------------------------------------------------------------------------------------
Total 15,390,123 16,889,442 12,496,210 6,025,396 3,841,629
====================================================================================================================================
William L. Kissick
For 15,102,653 16,502,440 12,237,740 5,915,718 3,776,760
Withhold 287,470 387,002 258,470 109,678 64,869
------------------------------------------------------------------------------------------------------------------------------------
Total 15,390,123 16,889,442 12,496,210 6,025,396 3,841,629
====================================================================================================================================
Thomas E. Leafstrand
For 15,105,944 16,490,862 12,243,573 5,917,004 3,780,360
Withhold 284,179 398,580 252,637 108,392 61,269
------------------------------------------------------------------------------------------------------------------------------------
Total 15,390,123 16,889,442 12,496,210 6,025,396 3,841,629
====================================================================================================================================
Timothy R. Schwertfeger
For 15,108,593 16,501,961 12,240,550 5,917,137 3,770,726
Withhold 281,530 387,481 255,660 108,259 70,903
------------------------------------------------------------------------------------------------------------------------------------
Total 15,390,123 16,889,442 12,496,210 6,025,396 3,841,629
====================================================================================================================================
Sheila W. Wellington
For 15,100,027 16,482,200 12,235,824 5,917,087 3,779,045
Withhold 290,096 407,242 260,386 108,309 62,584
------------------------------------------------------------------------------------------------------------------------------------
Total 15,390,123 16,889,442 12,496,210 6,025,396 3,841,629
====================================================================================================================================
APPROVAL OF AMENDMENT TO THE DECLARATION OF TRUST
For 8,321,273 8,931,594 6,766,260 3,156,270 1,959,928
Against 339,280 357,195 351,080 207,594 70,550
Abstain 309,791 332,665 192,867 115,923 64,246
Broker Non-Vote 6,419,779 7,267,988 5,186,003 2,545,609 1,746,905
------------------------------------------------------------------------------------------------------------------------------------
Total 15,390,123 16,889,442 12,496,210 6,025,396 3,841,629
====================================================================================================================================
11
Nuveen Select Tax-Free Income Portfolio (NXP)
Portfolio of
Investments September 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.2%
$ 440 Alabama Housing Finance Authority, Single Family Mortgage Revenue 4/04 at 102.00 Aaa $ 460,900
Bonds (Collateralized Home Mortgage Revenue Bond Program),
1994 Series A-1, 6.550%, 10/01/14
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 4.9%
4,750 State Public Works Board of California, Lease Revenue Bonds 3/04 at 102.00 Aaa 5,222,910
(California Community Colleges), 1994 Series B (Various
Community College Projects), 7.000%, 3/01/14 (Pre-refunded
to 3/01/04)
3,000 State Public Works Board of California, Lease Revenue Bonds 11/04 at 102.00 Aaa 3,400,260
(Department of Corrections), 1994 Series A (California State
Prison - Monterey County (Soledad II)), 6.875%,
11/01/14 (Pre-refunded to 11/01/04)
1,450 California Statewide Communities Development Authority, 2/03 at 102.00 A3 1,484,568
Hospital Revenue Certificates of Participation, Cedars-Sinai
Medical Center, Series 1992, 6.500%, 8/01/15
2,000 Los Angeles County Metropolitan Transportation Authority, 7/03 at 102.00 AAA 2,088,640
California, Sales Tax Revenue Refunding Bonds (Proposition A),
Series 1993-A, 5.625%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 9.1%
5,000 City and County of Denver, Colorado, Airport System Revenue 11/11 at 100.00 AAA 5,528,800
Refunding Bonds, Series 2001B, 5.625%, 11/15/17 (Alternative
Minimum Tax)
10,750 City and County of Denver, Colorado, Airport System Revenue No Opt. Call A 13,585,958
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
3,160 Northwest Parkway Public Highway Authority, Colorado, Revenue 6/11 at 102.00 AAA 3,526,655
Bonds, Senior Series 2001A, 5.500%, 6/15/20
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.5%
1,000 District of Columbia, Hospital Revenue and Refunding Bonds 8/06 at 102.00 AAA 1,190,530
(Medlantic Healthcare Group, Inc. Issue), Series 1996A,
5.750%, 8/15/16
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 6.9%
250 Escambia County, Florida, Pollution Control Revenue Bonds, 12/03 at 102.00 BBB 250,405
Champion International Corporation Project, Series 1993,
5.875%, 6/01/22 (Alternative Minimum Tax)
10,000 Jacksonville Electric Authority, Florida, Revenue Bonds 10/11 at 100.00 AA 10,769,400
(St. John's River Power Park System), Refunding Issue 2,
17th Series, 5.000%, 10/01/17
6,100 Jacksonville Electric Authority, Florida, Revenue Bonds 10/02 at 101.00 AA 6,161,366
(St. John's River Power Park System), Refunding Issue 2,
Ninth Series, 5.250%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.6%
1,330 State of Hawaii, Certificates of Participation (Kapolei State 11/08 at 101.00 AAA 1,414,216
Office Building), 1998 Series A, 5.000%, 5/01/17
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 17.3%
2,000 Central Lake County Joint Action Water Agency, Lake County, 5/03 at 102.00 AAA 2,051,780
Illinois, Interim Water Revenue Bonds, Series 1993,
5.375%, 5/01/20
City of Chicago Heights, Illinois, General Obligation Bonds,
Series 1993 (Corporate Purpose Bonds):
3,820 5.650%, 12/01/15 12/08 at 100.00 AAA 4,332,033
2,600 5.650%, 12/01/17 12/08 at 100.00 AAA 2,933,008
2,500 City of Chicago, Illinois, Chicago O'Hare International Airport, No Opt. Call Ca 425,125
Special Facility Revenue Refunding Bonds (United Air Lines,
Inc. Project), Series 2001C, 6.300%, 5/01/16
7,000 Cook County, Illinois, General Obligation Bonds, Series 1992A, 11/02 at 102.00 AAA 7,184,800
6.600%, 11/15/22 (Pre-refunded to 11/15/02)
12
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 1,000 Illinois Educational Facilities Authority, Revenue Bonds 5/08 at 101.00 A $1,043,510
(Midwestern University), Series 1998B, 5.500%, 5/15/18
3,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds 7/03 at 102.00 AAA 3,163,440
(Loyola University of Chicago), Series 1989-A, 6.100%, 7/01/15
(Pre-refunded to 7/01/03)
2,365 Illinois Health Facilities Authority, Revenue Bonds and Revenue No Opt. Call N/R*** 2,707,286
Refunding Bonds, Series 1992B (Evangelical Hospitals
Corporation), 6.500%, 4/15/09
1,320 Illinois Health Facilities Authority, Revenue Bonds, Series 2001 10/11 at 100.00 A 1,394,778
(Decatur Memorial Hospital), 5.600%, 10/01/16
2,700 Illinois Health Facilities Authority, Revenue Bonds, Series 2002A 7/12 at 100.00 A- 2,936,601
(Lake Forest Hospital), 6.000%, 7/01/17
800 Illinois Housing Development Authority, Homeowner Mortgage 2/10 at 100.00 AA 863,040
Revenue Bonds, Series 2000-D3, 5.700%, 8/01/17
1,500 Illinois Housing Development Authority, Homeowner Mortgage 7/10 at 100.00 AA 1,623,840
Revenue Bonds, Series 1999-G1, 5.700%, 8/01/17
600 Illinois Educational Facilities Authority, Student Housing Revenue 5/12 at 101.00 Baa2 611,592
Bonds, Educational Advancement Foundation Fund, University
Center Project, Series 2002, 6.000%, 5/01/22
2,000 State of Illinois, General Obligation Bonds, Series 1994, 8/04 at 102.00 AA*** 2,195,100
5.875%, 8/01/14 (Pre-refunded to 8/01/04)
3,125 Metropolitan Pier and Exposition Authority, Illinois, McCormick No Opt. Call AAA 1,626,344
Place Expansion Project Bonds, Series 1992A, 0.000%, 6/15/17
5,000 Metropolitan Pier and Exposition Authority, Illinois, McCormick 6/12 at 101.00 AAA 5,255,850
Place Expansion Project Refunding Revenue Bonds,
Series 2002B, 5.000%, 6/15/21
2,500 Regional Transportation Authority, Cook, DuPage, Kane, Lake, 6/03 at 102.00 AAA 2,621,900
McHenry and Will Counties, Illinois, General Obligation
Bonds, Series 1993A, 5.800%, 6/01/13 (Pre-refunded to 6/01/03)
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 6.4%
5,000 Duneland School Building Corporation, Indiana, First Mortgage 2/09 at 101.00 AAA 5,343,450
Bonds, Series 1999 Refunding, 5.125%, 2/01/18
9,855 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 10,445,709
Revenue Refunding Bonds (Waterworks Project), Series 2002A,
5.125%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.7%
4,030 City of Wichita, Kansas, Revenue Bonds (CSJ Health System 11/02 at 101.00 A+*** 4,131,677
of Wichita, Inc.), Series 1985 XXV (Remarketed), 7.200%, 10/01/15
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.9%
1,100 County of Jefferson, Kentucky, Health System Revenue Bonds, 10/08 at 101.00 AAA 1,170,191
Series 1998 (Alliant Health System, Inc.), 5.125%, 10/01/18
3,230 Lexington-Fayette Urban County Government, Kentucky, 11/04 at 102.00 AAA 3,636,108
Governmental Project Revenue Bonds, Series 1994 (University
of Kentucky Alumni Association, Inc. - Commonwealth Library
Project), 6.750%, 11/01/15 (Pre-refunded to 11/01/04)
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.5%
800 Maine Educational Loan Authority, Educational Loan Revenue 12/02 at 102.00 A 818,576
Bonds, Series 1992A-2 (Supplemental Educational Loan
Program), 7.150%, 12/01/16 (Alternative Minimum Tax)
Maine Educational Loan Authority, Educational Loan Revenue
Bonds, Series 1992A-1 (Supplemental Educational Loan Program):
1,290 6.800%, 12/01/07 (Alternative Minimum Tax) 12/02 at 102.00 Aaa 1,321,644
1,455 7.000%, 12/01/16 (Alternative Minimum Tax) 12/02 at 102.00 Aaa 1,488,567
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.2%
500 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA- 563,110
Revenue Bonds, Partners HealthCare System Issue, Series C,
6.000%, 7/01/17
13
Nuveen Select Tax-Free Income Portfolio (NXP) (continued)
Portfolio of Investments September 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.4%
$ 1,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BBB- $ 895,480
Bonds (Detroit Medical Center Obligated Group),
Series 1998A, 5.125%, 8/15/18
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.4%
1,045 Minnesota Housing Finance Agency, Single Family Mortgage 7/08 at 101.00 AA+ 1,097,271
Revenue Bonds, Series 1995A, 5.200%, 1/01/17
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.6%
3,600 Calhoun County, Mississippi, Solid Waste Disposal Revenue 4/07 at 103.00 BBB 3,881,160
Bonds (Weyerhauser Company Project), Series 1992,
6.875%, 4/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.3%
6,025 Director of the State of Nevada, Department of Business and 1/10 at 100.00 AAA 6,319,201
Industry, Las Vegas Monorail Project Revenue Bonds,
1st Tier Series 2000, 5.375%, 1/01/40
4,070 Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 6/12 at 100.00 AAA 4,454,493
5.500%, 6/01/21
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.7%
1,715 New Hampshire Housing Finance Authority, Single Family 5/11 at 100.00 Aa2 1,797,286
Mortgage Acquisition Bonds, Series 2001A, 5.600%, 7/01/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 3.1%
City of New York, New York, General Obligation Bonds, Fiscal
1995 Series A:
305 6.250%, 8/01/10 (Pre-refunded to 8/01/04) 8/04 at 101.50 Aaa 335,951
4,865 6.250%, 8/01/10 8/04 at 101.50 A 5,328,975
1,600 Dormitory Authority of the State of New York, Mount Sinai NYU 7/10 at 101.00 BBB- 1,791,904
Health Obligated Group Revenue Bonds, Series 2000A,
6.500%, 7/01/17
280 New York State Medical Care Facilities Finance Agency, Mental 2/03 at 101.00 AA- 286,801
Health Services Facilities Improvement Revenue Bonds,
1991 Series D, 7.400%, 2/15/18
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.2%
2,680 Ohio Housing Finance Agency, Residential Mortgage Revenue 9/07 at 102.00 Aaa 2,881,509
Bonds, Series 1997A (Remarketed), 6.050%, 9/01/17
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.3%
750 Pennsylvania Higher Educational Facilities Authority, Revenue 2/03 at 102.00 AAA 768,015
Bonds (Thomas Jefferson University), 1992 Series A,
6.625%, 8/15/09
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 6.5%
10,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- 11,153,400
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/19
5,000 South Carolina Housing Finance and Development Authority, 11/02 at 102.00 Aaa 5,108,700
Multifamily Housing Revenue Bonds, 1992 Series A,
6.875%, 11/15/23
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 2.4%
5,750 Memphis-Shelby County Airport Authority, Tennessee, Airport 7/03 at 102.00 BBB 5,930,608
Special Facilities and Project Revenue Bonds (Federal Express
Corporation), Series 1993, 6.200%, 7/01/14 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 9.2%
5,000 Brazos River Harbor Navigation District, Braoria County, Texas, 5/12 at 101.00 A 5,183,000
Environmental Facilities Revenue Bonds (Dow Chemical Company
Project), 2002 Series A-6, 6.250%, 5/15/33 (Alternative
Minimum Tax) (Mandatory put 5/15/17)
2,000 Conroe Independent School District, Texas, Unlimited Tax 2/04 at 100.00 AAA 2,053,920
Schoolhouse and Refunding Bonds, Series 1993,
5.000%, 2/01/18
6,150 Dallas Independent School District, Dallas County, Texas, 2/12 at 100.00 AAA 6,623,612
General Obligation Bonds, Series 2002 Refunding,
5.250%, 2/15/20
4,370 Harris County Health Facilities Development Corporation, Texas, 12/02 at 102.00 A3*** 4,766,403
Hospital Revenue Bonds (Memorial Hospital System Project),
Series 1992, 7.125%, 6/01/15
14
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 3,500 Irving Independent School District, Dallas County, Texas, General 2/12 at 100.00 AAA $3,596,075
Obligation Bonds, Series 2002A Refunding, 5.000%, 2/15/31
City of San Antonio, Texas, Water System Revenue Refunding
Bonds, Series 1992:
95 6.000%, 5/15/16 (Pre-refunded to 5/15/07) 5/07 at 100.00 AAA 109,951
465 6.000%, 5/15/16 No Opt. Call AAA 562,752
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 11.3%
2,500 Public Utility District No. 1 of Snohomish County, Washington, 1/03 at 100.00 A+*** 2,534,375
Electric System Refunding Revenue Bonds, Series 1991A,
7.000%, 1/01/16 (Pre-refunded to 1/01/03)
5,700 Public Utility District No. 1 of Snohomish County, Washington, 1/03 at 101.00 Aaa 6,940,833
Generation System Revenue Bonds, Series 1989,
6.750%, 1/01/12
3,000 Washington State Healthcare Facilities Authority, Revenue 12/07 at 101.00 AAA 3,141,090
Bonds, Series 1997A, Catholic Health Initiatives,
5.125%, 12/01/17
9,750 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 AAA 10,393,988
Bonds, Series 2001A, Providence Health System,
5.125%, 10/01/17
5,000 Washington Public Power Supply System, Nuclear Project 7/03 at 102.00 Aa1 5,146,250
No. 1 Refunding Revenue Bonds, Series 1993C, 5.375%, 7/01/15
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.9%
1,885 Marshall County, West Virginia, Special Obligation Refunding No Opt. Call AAA 2,249,502
Bonds, Series 1992, 6.500%, 5/15/10
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.8%
4,400 Wisconsin Health and Educational Facilities Authority, Revenue 6/03 at 102.00 AAA 4,525,133
Bonds, Series 1993 (Hospital Sisters Services, Inc. - Obligated
Group), 5.375%, 6/01/18
------------------------------------------------------------------------------------------------------------------------------------
$ 222,820 Total Long-Term Investments (cost $219,748,052) - 95.3% 236,831,305
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (COST $2,000,000) - 0.8%
$ 2,000 Minnesota Higher Education Facilities Authority, Revenue Bonds VMIG-1 2,000,000
============= (St. Olaf College), Series 2000-5H, Variable Rate Demand
Obligations, 2.100%, 10/01/30+
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.9% 9,669,688
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $248,500,993
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
15
Nuveen Select Tax-Free Income Portfolio 2 (NXQ)
Portfolio of
Investments September 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.8%
$ 1,000 City of Fort Smith, Arkansas, Water and Sewer Revenue Bonds, 10/11 at 100.00 AAA $1,061,380
Series 2002A Refunding and Construction, 5.000%, 10/01/19
1,000 Sebastian County, Arkansas, Sparks Regional Medical Center, 11/11 at 101.00 A2 1,017,980
Public Health Facilities Board Hospital Revenue Improvement
Bonds, Series 2001A, 5.250%, 11/01/21
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 5.5%
3,250 State Public Works Board of California, Lease Revenue Bonds 3/04 at 102.00 Aaa 3,573,570
(California Community Colleges), 1994 Series B (Various
Community College Projects), 7.000%, 3/01/14 (Pre-refunded
to 3/01/04)
2,000 State Public Works Board of California, Lease Revenue Refunding No Opt. Call Aa2 2,373,020
Bonds (The Regents of the University of California),
1993 Series A (Various University of California Projects),
5.500%, 6/01/14
5,000 State Public Works Board of California, Lease Revenue Bonds 11/04 at 102.00 Aaa 5,667,100
(Department of Corrections), 1994 Series A (California State
Prison - Monterey County (Soledad II)), 6.875%, 11/01/14
(Pre-refunded to 11/01/04)
500 State Public Works Board of California, Lease Revenue 12/08 at 101.00 A 540,465
Refunding Bonds (California Community Colleges) (Various
Community College Projects), 1998 Series A, 5.250%, 12/01/16
500 City of Contra Costa Water District, California, Water Revenue 10/07 at 100.00 AA- 526,520
Bonds, Refunding Series 1997H, 5.000%, 10/01/17
500 County of Contra Costa, California, Certificates of Participation 11/07 at 102.00 AAA 556,040
(Merrithew Memorial Hospital Replacement Project),
Refunding Series 1997, 5.375%, 11/01/17
1,000 City of Fresno, California, Health Facility Revenue Bonds, 12/03 at 102.00 AAA 1,062,230
Series 1993B (Holy Cross Health System Corporation),
5.625%, 12/01/15
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 8.6%
5,000 City and County of Denver, Colorado, Airport System Revenue 11/11 at 100.00 AAA 5,528,800
Refunding Bonds, Series 2001B, 5.625%, 11/15/17 (Alternative
Minimum Tax)
3,185 City and County of Denver, Colorado, Airport System Revenue No Opt. Call A 4,025,235
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax)
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1992B:
2,335 7.250%, 11/15/12 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102.00 Aaa 2,397,625
9,130 7.250%, 11/15/12 (Alternative Minimum Tax) 11/02 at 102.00 A 9,355,328
1,100 University of Colorado Hospital Authority, Hospital Revenue 11/11 at 100.00 A3 1,122,363
Bonds, Series 2001A, 5.600%, 11/15/31
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.2%
500 District of Columbia, Hospital Revenue and Refunding Bonds 8/06 at 102.00 AAA 595,265
(Medlantic Healthcare Group, Inc. Issue), Series 1996A,
5.750%, 8/15/16
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.3%
6,060 Jacksonville Electric Authority, Florida, Revenue Bonds 10/02 at 101.00 AA 6,120,964
(St. John's River Power Park System), Refunding Issue 2,
Ninth Series, 5.250%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.4%
1,100 State of Hawaii, Certificates of Participation (Kapolei State 11/08 at 101.00 AAA 1,169,652
Office Building), 1998 Series A, 5.000%, 5/01/17
16
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 20.5%
$ 8,420 Chicago Metropolitan Housing Development Corporation, Illinois, 1/03 at 102.00 AA $8,601,956
Housing Development Revenue Refunding Bonds (FHA-Insured
Mortgage Loans - Section 8 Assisted Projects), Series 1992A,
6.800%, 7/01/17
2,400 City of Chicago, Illinois, Chicago O'Hare International Airport, No Opt. Call Ca 408,120
Special Facility Revenue Refunding Bonds (United Air Lines,
Inc. Project), Series 2001C, 6.300%, 5/01/16
8,070 Cook County, Illinois, General Obligation Bonds, Series 1992A, 11/02 at 102.00 AAA 8,283,048
6.600%, 11/15/22 (Pre-refunded to 11/15/02)
2,500 Illinois Educational Facilities Authority, Revenue Bonds, 12/03 at 102.00 BBB 2,562,900
Series 1993 (Columbia College), 6.125%, 12/01/18
Illinois Educational Facilities Authority, Revenue Refunding Bonds,
Series 1992 (Columbia College):
2,610 6.875%, 12/01/17 (Pre-refunded to 12/01/04) 12/04 at 100.00 N/R*** 2,899,240
1,140 6.875%, 12/01/17 12/04 at 100.00 BBB 1,187,606
3,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1993 11/03 at 102.00 AAA 3,065,190
(Rush-Presbyterian - St. Luke's Medical Center Obligated Group),
5.250%, 11/15/20
2,255 Illinois Health Facilities Authority, Revenue Bonds, Series 2002A 7/12 at 100.00 A- 2,417,180
(Lake Forest Hospital), 6.250%, 7/01/22
1,900 Illinois Housing Development Authority, Homeowner Mortgage 2/10 at 100.00 AA 2,049,720
Revenue Bonds, Series 2000-D3, 5.700%, 8/01/17
600 Illinois Educational Facilities Authority, Student Housing Revenue 5/12 at 101.00 Baa2 611,592
Bonds, Educational Advancement Foundation Fund, University
Center Project, Series 2002, 6.000%, 5/01/22
Metropolitan Pier and Exposition Authority, Illinois, McCormick
Place Expansion Project Bonds, Series 1992A:
2,205 6.500%, 6/15/22 (Pre-refunded to 6/15/03) 6/03 at 102.00 Aaa 2,326,937
45 6.500%, 6/15/22 6/03 at 102.00 Aa3 46,655
7,000 Metropolitan Pier and Exposition Authority, Illinois, McCormick 6/12 at 101.00 AAA 7,358,190
Place Expansion Project Refunding Revenue Bonds,
Series 2002B, 5.000%, 6/15/21
5,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, 6/03 at 102.00 AAA 5,243,800
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1993A, 5.800%, 6/01/13 (Pre-refunded to 6/01/03)
5,045 Sauk Village, Illinois, General Obligation Alternate Revenue 12/12 at 100.00 AA 5,151,601
Source Bonds, Series 2002A, Tax Increment, 5.000%, 6/01/22
Sauk Village, Illinois, General Obligation Alternate Revenue Source
Bonds, Series 2002B, Tax Increment:
1,060 0.000%, 12/01/17 No Opt. Call AA 507,857
1,135 0.000%, 12/01/18 No Opt. Call AA 509,127
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.6%
4,380 Indiana Municipal Power Agency, Power Supply System Revenue 1/12 at 100.00 AAA 4,621,338
Bonds, Series 2002A, 5.125%, 1/01/21
2,000 Indiana Housing Finance Authority, Single Family Mortgage 7/11 at 100.00 Aaa 2,053,480
Revenue Bonds, 2002 Series C-2, 5.250%, 7/01/23 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.6%
Tobacco Settlement Authority, Iowa, Tobacco Settlement
Asset-Backed Revenue Bonds, Series 2001B:
1,000 5.300%, 6/01/25 6/11 at 101.00 A1 909,760
3,500 5.600%, 6/01/35 6/11 at 101.00 A1 3,182,165
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 5.7%
3,000 Louisiana Public Facilities Authority, Revenue Bonds, Tulane 7/12 at 100.00 AAA 3,133,710
University of Louisiana, Series 2002A, 5.125%, 7/01/27
Louisiana Public Facilities Authority, Revenue Bonds, Tulane
University of Louisiana, Series 1992:
2,590 6.625%, 11/15/21 (Pre-refunded to 11/15/02) 11/02 at 102.00 A+*** 2,658,298
8,835 6.625%, 11/15/21 (Pre-refunded to 11/15/02) 11/02 at 102.00 A+*** 9,067,979
17
Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued)
Portfolio of Investments September 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.8%
$ 4,000 Massachusetts Health and Educational Facilities Authority, 11/03 at 102.00 AAA $4,084,560
Revenue Bonds, Cape Cod Health Systems, Inc. Issue, Series A,
5.250%, 11/15/21
3,000 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 3,114,840
Revenue Bonds, Berkshire Health System Issue, Series 2001E,
6.250%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.8%
2,065 City of Billings, Montana, Tax Increment Urban Renewal Bonds, 3/03 at 100.50 Baa3 2,103,616
Refunding Series 1992, 7.100%, 3/01/08
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 5.5%
500 Clark County, Nevada, Las Vegas Convention and Visitors 7/06 at 101.00 AAA 546,540
Authority Bonds (General Obligation - Limited Tax), Series 1996,
5.500%, 7/01/17
13,250 Director of the State of Nevada, Department of Business and 1/10 at 100.00 AAA 13,896,998
Industry, Las Vegas Monorail Project Revenue Bonds, 1st Tier
Series 2000, 5.375%, 1/01/40
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 5.2%
2,700 Dormitory Authority of the State of New York, Mount Sinai NYU 7/10 at 101.00 BBB- 3,023,838
Health Obligated Group Revenue Bonds, Series 2000A,
6.500%, 7/01/17
4,000 New York State Medical Care Facilities Finance Agency, 2/05 at 102.00 AAA 4,552,600
New York, Hospital FHA-Insured Mortgage Revenue Bonds,
Series 1994A, 6.750%, 8/15/14 (Pre-refunded to 2/15/05)
5,000 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 6,024,350
Center Bonds, Series E, 7.250%, 1/01/10
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.7%
1,500 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 AA 1,537,440
Healthcare System Revenue Bonds, Carolinas Healthcare
System, Series 2001A, 5.000%, 1/15/31
5,500 North Carolina Eastern Municipal Power Agency, Power System 1/03 at 102.00 BBB 5,615,170
Revenue Bonds, Series 1993-D, 5.600%, 1/01/16
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.2%
2,800 County of Cuyahoga, Ohio, Hospital Revenue Bonds (Meridia 8/05 at 102.00 AAA 3,204,376
Health System), Series 1995, 6.250%, 8/15/14 (Pre-refunded
to 8/15/05)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.2%
1,000 Dauphin County General Authority, Pennsylvania, Health System 2/09 at 101.00 AAA 1,060,330
Revenue Bonds, Series 1999 (Pinnacle Health System Project),
5.125%, 8/15/17
1,000 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101.00 AAA 1,097,040
Airport Revenue Bonds, Series 2001A, Philadelphia Airport
System Project, 5.500%, 7/01/17 (Alternative Minimum Tax)
3,250 School District of Philadelphia, Pennsylvania, General Obligation 2/12 at 100.00 AAA 3,519,783
Bonds, Series 2002A, 5.500%, 2/01/31
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.4%
4,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- 4,461,360
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/19
7,000 Richland County, South Carolina, Solid Waste Disposal Facilities 11/02 at 102.00 BBB 7,155,680
Revenue Bonds (Union Camp Corporation Project), Series 1992-A,
6.750%, 5/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.7%
1,670 Tennessee Housing Development Agency, Homeownership Program 1/03 at 102.00 AA 1,705,905
Bonds, Issue WR, 6.800%, 7/01/17
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 12.2%
$ 3,275 Health Facilities Development Corporation, Bexar County, Texas, 8/04 at 102.00 AAA $3,657,848
Hospital Revenue Bonds (Baptist Memorial Hospital System
Project), Series 1994, 6.900%, 2/15/14 (Pre-refunded to 8/15/04)
4,000 Brazos River Harbor Navigation District, Braoria County, Texas, 5/12 at 101.00 A 4,146,400
Environmental Facilities Revenue Bonds, Dow Chemical
Company Project, 2002 Series A-6, 6.250%, 5/15/33 (Alternative
Minimum Tax) (Mandatory put 5/15/17)
4,635 Cleveland Housing Corporation, Texas, Mortgage Revenue 1/03 at 100.00 AAA 4,658,685
Refunding Bonds, Series 1992-C (FHA-Insured - Section 8),
7.375%, 7/01/24
2,500 Harris County Health Facilities Development Corporation, Texas, 10/05 at 102.00 AAA 2,805,100
Hospital Revenue Refunding Bonds (Children's Hospital Project),
Series 1995, 5.500%, 10/01/16
2,000 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/12 at 100.00 AAA 2,173,420
Bonds, Series 2002A, 5.625%, 7/01/20 (Alternative Minimum Tax)
4,750 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 5,195,265
System Revenue Refunding Bonds, Series 2002A,
5.500%, 10/01/17
8,900 Texas Turnpike Authority, Dallas North Tollway System Revenue 1/06 at 102.00 AAA 9,351,586
Bonds, Series 1995 (President George Bush Turnpike),
5.250%, 1/01/23
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 2.6%
3,000 Vermont Housing Finance Agency, Multifamily Housing Bonds, 2/09 at 100.00 AAA 3,187,770
1999 Series C, 5.800%, 8/15/16
3,600 Vermont Industrial Development Authority, Industrial Development 3/03 at 102.00 A 3,677,436
Refunding Revenue Bonds (Stanley Works Project), Series 1992,
6.750%, 9/01/10
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.5%
2,000 Washington State Healthcare Facilities Authority, Revenue 12/07 at 101.00 AAA 2,094,060
Bonds, Series 1997A, Catholic Health Initiatives,
5.125%, 12/01/17
6,715 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 AAA 7,158,522
Bonds, Series 2001A, Providence Health System,
5.125%, 10/01/17
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.6%
4,000 Wisconsin Housing and Economic Development Authority, 3/12 at 100.00 AA 4,145,880
Home Ownership Revenue Bonds, 2002 Series G,
4.850%, 9/01/17
------------------------------------------------------------------------------------------------------------------------------------
$ 234,460 Total Long-Term Investments (cost $231,988,680) - 93.6% 244,507,384
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (COST $6,100,000) - 2.3%
$ 6,100 Camden County Improvement Authority, New Jersey, Senior A-1+ 6,100,000
============= Redevelopment Revenue Bonds (Harvest Village Project),
Variable Rate Demand Bonds, Series 1999A, 1.950%, 7/01/29+
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.1% 10,743,035
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $261,350,419
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
19
Nuveen Select Tax-Free Income Portfolio 3 (NXR)
Portfolio of
Investments September 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.3%
$ 500 Marshall County Healthcare Authority, Alabama, Revenue Bonds, 1/12 at 101.00 A- $ 538,585
Series 2002A, 6.250%, 1/01/22
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 3.3%
2,105 Azusa Unified School District, Los Angeles County, California, 7/12 at 100.00 AAA 2,319,710
General Obligation Bonds, Series 2002, 5.375%, 7/01/21
3,000 State Public Works Board of California, Lease Revenue Bonds 11/04 at 102.00 Aaa 3,400,260
(Department of Corrections), 1994 Series A (California State
Prison - Monterey County (Soledad II)), 6.875%, 11/01/14
(Pre-refunded to 11/01/04)
500 City of Fresno, California, Health Facility Revenue Refunding 12/03 at 102.00 AAA 528,020
Bonds, Series 1993A (Holy Cross Health System Corporation),
5.625%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 7.5%
2,500 City of Colorado Springs, Colorado, Utilities System Refunding 11/02 at 100.00 AA 2,514,600
Revenue Bonds, Series 1992A, 6.125%, 11/15/20 (Pre-refunded
to 11/15/02)
2,700 City and County of Denver, Colorado, Airport System Revenue No Opt. Call A 3,412,287
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax)
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1992B:
815 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102.00 Aaa 836,858
(Pre-refunded to 11/15/02)
3,185 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102.00 A 3,267,237
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1992C:
470 6.750%, 11/15/13 (Alternative Minimum Tax) 11/02 at 102.00 Aaa 482,314
(Pre-refunded to 11/15/02)
3,530 6.750%, 11/15/13 (Alternative Minimum Tax) 11/02 at 102.00 A 3,618,956
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.1%
250 State of Connecticut, Health and Educational Facilities Authority, 1/03 at 102.00 AAA 256,208
Revenue Bonds, Bridgeport Hospital Issue, Series A,
6.625%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.4%
District of Columbia, Washington D.C., General Obligation Bonds,
Series 1993E:
445 6.000%, 6/01/13 (Pre-refunded to 6/01/03) 6/03 at 102.00 AAA 467,165
1,305 6.000%, 6/01/13 6/03 at 102.00 AAA 1,366,191
2,495 6.000%, 6/01/13 6/03 at 102.00 AAA 2,611,317
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.0%
4,000 Jacksonville Electric Authority, Florida, Electric System Revenue 10/07 at 100.00 AA- 3,989,640
Bonds, Series 2002D Subordinate Lien, 4.625%, 10/01/22
5,020 Jacksonville Electric Authority, Florida, Revenue Bonds (St. John's 10/11 at 100.00 AA 5,367,033
River Power Park System), Refunding Issue 2, 17th Series,
5.000%, 10/01/18
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 17.8%
3,000 Village of Bryant, Illinois, Pollution Control Revenue Refunding 2/03 at 101.00 A2 3,000,030
Bonds (Central Illinois Light Company Project), Series 1992,
6.500%, 2/01/18
2,475 Chicago Metropolitan Housing Development Corporation, 1/03 at 102.00 AA 2,527,866
Illinois, Housing Development Revenue Refunding Bonds
(FHA-Insured Mortgage Loans - Section 8 Assisted Projects),
Series 1992A, 6.850%, 7/01/22
2,550 City of Chicago, Illinois, Mortgage Revenue Bonds, Series 1992 12/02 at 102.00 AAA 2,604,009
(FHA-Insured Mortgage Loan - Lakeview Towers Project),
6.600%, 12/01/20
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 700 City of Chicago, Illinois, Chicago O'Hare International Airport, No Opt. Call Ca $ 119,035
Special Facility Revenue Refunding Bonds (United Air Lines,
Inc. Project), Series 2001C, 6.300%, 5/01/16
1,700 City of Chicago, Illinois, Chicago O'Hare International Airport, 1/03 at 102.00 AAA 1,739,831
General Airport Second Lien Revenue Refunding Bonds,
Series 1993A, 5.600%, 1/01/18 (Alternative Minimum Tax)
1,930 Illinois Development Finance Authority, Revenue Bonds, 5/11 at 101.00 BBB+ 2,056,087
Midwestern University, Series 2001B, 5.750%, 5/15/16
1,500 Illinois Health Facilities Authority, Revenue Bonds, Series 1992C No Opt. Call N/R*** 1,822,245
(Evangelical Hospitals Corporation), 6.250%, 4/15/22
4,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992B 9/06 at 100.00 AAA 4,673,880
(Franciscan Sisters Healthcare Corporation Project),
6.625%, 9/01/13 (Pre-refunded to 9/01/06)
620 Illinois Housing Development Authority, Homeowner Mortgage 2/10 at 100.00 AA 668,856
Revenue Bonds, Series 2000-D3, 5.700%, 8/01/17
7,750 Illinois State Toll Highway Authority, Toll Highway Priority 1/03 at 102.00 AAA 8,001,023
Revenue Bonds, 1992 Series A, 6.375%, 1/01/15 (Pre-refunded
to 1/01/03)
6,000 Metropolitan Pier and Exposition Authority, Illinois, McCormick 6/12 at 101.00 AAA 6,307,020
Place Expansion Project Refunding Revenue Bonds, Series 2002B,
5.000%, 6/15/21
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.5%
3,500 Indiana Health Facility Financing Authority, Hospital Revenue 9/11 at 100.00 A+ 3,595,025
Bonds, Series 2001, The Methodist Hospital, Inc,
5.375%, 9/15/22
2,000 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 2,109,940
Revenue Refunding Bonds (Waterworks Project), Series 2002A,
5.250%, 7/01/33
2,725 Warrick County, Indiana, Adjustable Rate Environmental 5/03 at 102.00 A1 2,800,782
Improvement Revenue Bonds, 1993 Series B (Southern Indiana
Gas and Electric Company Project), 6.000%, 5/01/23 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.9%
Tobacco Settlement Authority, Iowa, Tobacco Settlement
Asset-Backed Revenue Bonds, Series 2001B:
1,000 5.300%, 6/01/25 6/11 at 101.00 A1 909,760
2,850 5.600%, 6/01/35 6/11 at 101.00 A1 2,591,192
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 2.2%
4,080 Trimble County, Kentucky, Pollution Control Revenue Bonds 3/03 at 102.00 A1 4,166,088
(Louisville Gas and Electric Company Project), Series 1990-B,
6.550%, 11/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.2%
4,000 Louisiana Public Facilities Authority, Revenue Bonds, Series 1992, 2/03 at 101.00 AA 4,095,640
Baton Rouge Water Works Company Project, 6.400%, 2/01/10
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.0%
1,270 Massachusetts Health and Educational Facilities Authority, 11/02 at 102.00 Aaa 1,303,363
Revenue Bonds, MetroWest Health, Inc. Issue, Series C,
6.500%, 11/15/18 (Pre-refunded to 11/15/02)
500 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA- 563,110
Revenue Bonds, Partners HealthCare System Issue, Series C,
6.000%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 6.8%
4,000 Michigan State Housing Development Authority, Single Family 6/06 at 102.00 AA+ 4,264,800
Mortgage Revenue Bonds, 1996 Series C, 5.950%, 12/01/17
8,240 Michigan State Housing Development Authority, Limited Obligation 3/03 at 103.00 AAA 8,542,326
Multifamily Housing Revenue Bonds, Greenwood Villa Project,
Series 1992, 6.625%, 9/15/17
21
Nuveen Select Tax-Free Income Portfolio 3 (NXR) (continued)
Portfolio of Investments September 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 5.9%
Clark County, Nevada, Las Vegas-McCarran International Airport,
Passenger Facility Charge Revenue Bonds, Series 1992B:
$ 1,955 6.500%, 7/01/12 (Alternative Minimum Tax) 1/03 at 102.00 A+ $1,997,443
20 6.250%, 7/01/22 (Alternative Minimum Tax) 1/03 at 102.00 A+ 20,421
4,000 Director of the State of Nevada, Department of Business and 1/10 at 100.00 AAA 4,195,320
Industry, Las Vegas Monorail Project Revenue Bonds, 1st Tier
Series 2000, 5.375%, 1/01/40
4,510 Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 6/12 at 100.00 AAA 4,902,550
5.500%, 6/01/22
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.2%
2,095 New Hampshire Housing Finance Authority, Single Family Mortgage 5/11 at 100.00 Aa2 2,195,518
Acquisition Bonds, Series 2001A, 5.600%, 7/01/21 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 3.6%
2,335 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 A- 2,472,205
Revenue Bonds, Series 2001A, 5.375%, 9/01/21
35 City of New York, New York, General Obligation Bonds, 2/03 at 100.75 A 35,669
Fiscal 1992 Series B, 7.000%, 2/01/18
2,130 Dormitory Authority of the State of New York, City University No Opt. Call A3 2,610,911
System Consolidated Second General Resolution Revenue
Bonds, Series 1990C, 7.500%, 7/01/10
1,485 New York State Medical Care Facilities Finance Agency, 2/03 at 102.00 AAA 1,580,174
Hospital and Nursing Home FHA-Insured Mortgage Revenue
Bonds, 1992 Series C, 6.250%, 8/15/12
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.4%
2,345 Piedmont Triad Airport Authority, North Carolina, Airport Revenue 7/11 at 101.00 AAA 2,577,014
Bonds, Series 2001A, 5.250%, 7/01/16
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.3%
2,435 Industrial Development Authority, Dauphin County, Pennsylvania, No Opt. Call A- 3,077,085
Water Development Refunding Revenue Bonds, Series 1992B
(Dauphin Consolidates Water Supply Company), 6.700%, 6/01/17
Pennsylvania Higher Educational Facilities Authority, Revenue
Bonds (Drexel University), Series 1993:
245 6.375%, 5/01/17 (Pre-refunded to 5/01/03) 5/03 at 100.00 A*** 256,745
1,755 6.375%, 5/01/17 5/03 at 102.00 A 1,835,397
1,000 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101.00 AAA 1,097,040
Airport Revenue Bonds, Series 2001A, Philadelphia Airport
System Project, 5.500%, 7/01/17 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.1%
2,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Baa2 2,088,880
Tennessee, Hospital Facilities Revenue Bonds, Baptist Health
System of East Tennessee, Series 2002, 6.375%, 4/15/22
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 10.9%
3,755 Grand Prairie Industrial Development Authority, Texas, Industrial 12/02 at 102.00 A 3,850,940
Development Revenue Refunding Bonds, Series 1992 (Baxter
International, Inc. Project), 6.550%, 12/01/12
2,500 Harris County Health Facilities Development Corporation, Texas, 10/04 at 101.00 AAA 2,760,950
Hospital Revenue Bonds, Hermann Hospital, Series 1994,
6.375%, 10/01/17 (Pre-refunded to 10/01/04)
3,000 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/12 at 100.00 AAA 3,346,140
Bonds, Series 2002B, 5.500%, 7/01/18
5,000 North Central Texas Health Facilities Development Corporation, 5/06 at 102.00 AA- 5,259,050
Hospital Revenue Refunding Bonds, Baylor Healthcare System
Project, Series 1995, 5.250%, 5/15/16
4,750 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 5,195,265
System Revenue Refunding Bonds, Series 2002A,
5.500%, 10/01/17
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 4.2%
Port of Seattle, Washington, Revenue Bonds, Series 1992B:
$ 290 6.000%, 11/01/17 (Alternative Minimum Tax) 11/02 at 100.00 Aa2*** $ 291,059
(Pre-refunded to 11/01/02)
3,710 6.000%, 11/01/17 (Alternative Minimum Tax) 11/02 at 100.00 Aa2 3,724,172
(Pre-refunded to 11/01/02)
3,880 State of Washington, General Obligation Bonds, Series 1993A, 10/03 at 100.00 AA+ 3,884,306
4.500%, 10/01/18
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 3.0%
2,500 Berkeley County Building Commission, West Virginia, Hospital 11/02 at 102.00 BBB+ 2,554,900
Revenue Bonds (City Hospital Project), Series 1992,
6.500%, 11/01/09
3,000 Mason County, West Virginia, Pollution Control Revenue Bonds 10/02 at 102.00 BBB+ 3,062,670
(Appalachian Power Company Project), Series 1992J,
6.600%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
$ 159,940 Total Long-Term Investments (cost $159,686,102) - 89.6% 168,310,113
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 8.0%
3,000 Camden County Improvement Authority, New Jersey, Senior A-1+ 3,000,000
Redevelopment Revenue Bonds (Harvest Village Project),
Variable Rate Demand Bonds, Series 1999A, 1.950%, 7/01/29+
5,000 Illinois Health Facilities Authority, Revenue Bonds (BroMenn A-1+ 5,000,000
Healthcare), Variable Rate Demand Obligations, Series 2002,
2.100%, 8/15/32+
5,300 New Jersey Economic Development Authority, Water Facilities A-1+ 5,300,000
Revenue Refunding Bonds (United Water New Jersey, Inc.
Project), Variable Rate Demand Bonds, 1996 Series A,
2.050%, 11/01/26+
1,730 Washington State Housing Finance Commission, Nonprofit A-1 1,730,000
Revenue Bonds (Local 82 - J.A.T.C. Educational Development
Trust Project), Variable Rate Demand Bonds, Series 2000,
2.100%, 11/01/25+
------------------------------------------------------------------------------------------------------------------------------------
$ 15,030 Total Short-Term Investments (cost $15,030,000) 15,030,000
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 4,437,514
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $187,777,627
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
23
Nuveen California Select Tax-Free Income Portfolio (NXC)
Portfolio of
Investments September 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 2.2%
$ 2,000 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 A1 $2,022,120
Settlement Asset-Backed Revenue Bonds, Fresno County
Tobacco Funding Corporation, Series 2002, 5.625%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 10.0%
1,410 California Educational Facilities Authority, Refunding Revenue 10/02 at 100.00 AAA 1,414,893
Bonds, Loyola Marymount University, Series 1992,
6.000%, 10/01/14
750 California Educational Facilities Authority, Revenue Bonds, 8/09 at 100.00 A1 799,073
Pepperdine University, Series 2002A, 5.500%, 8/01/32
2,600 California Educational Facilities Authority, Revenue Bonds, 11/11 at 100.00 A2 2,793,180
University of the Pacific, Series 2002, 5.250%, 11/01/21
1,000 California Educational Facilities Authority, Revenue Bonds, 10/12 at 100.00 A2 1,085,540
University of San Diego, Series 2002A, 5.500%, 10/01/32
3,000 California Infrastructure and Economic Development Bank, 10/11 at 101.00 A- 3,290,370
Revenue Bonds, Series 2001, The J. David Gladstone Institutes
Project, 5.500%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 14.2%
2,500 California Health Facilities Financing Authority, Insured Hospital 10/02 at 102.00 AAA 2,608,350
Revenue Bonds (Scripps Memorial Hospitals), Series 1992A,
6.400%, 10/01/12
4,000 California Health Facilities Financing Authority, Insured Hospital 2/03 at 102.00 AAA 4,094,520
Revenue Bonds (San Diego Hospital Association), Series 1992B,
6.125%, 8/01/11
2,000 California Infrastructure and Economic Development Bank, Revenue 8/11 at 102.00 A 2,117,640
Bonds, Series 2001A, Kaiser Hospital Assistance I-LLC,
5.550%, 8/01/31
1,880 California Statewide Communities Development Authority, 6/07 at 101.00 AAA 2,071,534
Revenue Bonds (Los Angeles Orthopedic Hospital Foundation
and Orthopedic Hospital), Series 2000, 5.500%, 6/01/17
1,500 California Statewide Communities Development Authority, Insured 11/09 at 102.00 A+ 1,581,480
Mortgage Hospital Revenue Bonds (Mission Community
Hospital), Series 2001, 5.375%, 11/01/26
800 Central Joint Powers Health Financing Authority, Certificates of 2/03 at 100.00 Baa1 766,928
Participation, Series 1993 (Community Hospital of Central
California), 5.000%, 2/01/23
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 18.0%
2,000 Antelope Valley Union High School District, Los Angeles County, 8/12 at 101.00 AAA 2,102,960
California, General Obligation Bonds, Series 2002A,
5.000%, 2/01/27
1,500 Beverly Hills Unified School District, Los Angeles County, 8/12 at 100.00 AA 1,576,650
California, General Obligation Bonds, Series 2002A,
5.000%, 8/01/26
Golden West Schools Financing Authority, California, 1999
Revenue Bonds, Series A (School District General Obligation
Refunding Program):
4,650 0.000%, 8/01/16 No Opt. Call AAA 2,589,864
1,750 0.000%, 2/01/17 No Opt. Call AAA 937,038
Golden West Schools Financing Authority, California, 1999
Revenue Bonds, Series A (School District General Obligation
Refunding Program):
2,375 0.000%, 8/01/17 No Opt. Call AAA 1,244,286
2,345 0.000%, 2/01/18 No Opt. Call AAA 1,182,419
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Mountain View-Los Altos Union High School District, County of
Santa Clara, California, 1995 General Obligation Capital
Appreciation Bonds, Series C:
$ 1,015 0.000%, 5/01/17 No Opt. Call AAA $ 537,595
1,080 0.000%, 5/01/18 No Opt. Call AAA 538,520
2,000 North Orange County Community College District, California, 8/12 at 101.00 AAA 2,124,600
General Obligation Bonds, Series 2002A, 5.000%, 8/01/22
4,000 City of Oakland, Alameda County, California, General Obligation 12/02 at 102.00 AAA 4,093,240
Bonds, Series 1992, 6.000%, 6/15/17
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 11.7%
3,500 State Public Works Board of California, Lease Revenue Bonds, No Opt. Call AAA 4,542,755
Department of Corrections, 1991 Series A, Calipatria State
Prison in Imperial County, 6.500%, 9/01/17
1,200 Los Angeles County Metropolitan Transportation Authority, 7/03 at 102.00 AAA 1,253,184
California, Proposition A, Sales Tax Revenue Refunding
Bonds, Series 1993-A, 5.625%, 7/01/18
4,000 San Bernardino County, California, Certificates of Participation 11/02 at 102.00 AAA 4,093,680
(1992 West Valley Detention Center Refinancing Project),
6.000%, 11/01/18
1,000 Santa Clara County Board of Education, California, Certificates 4/12 at 101.00 AAA 1,051,320
of Participation, Series 2002, 5.000%, 4/01/25
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 18.9%
5,000 Harbor Department of the City of Los Angeles, California, Revenue 8/11 at 100.00 AAA 5,551,400
Refunding Bonds, Series 2001B, 5.500%, 8/01/17
(Alternative Minimum Tax)
3,675 Palm Springs Financing Authority, California, Palm Springs 1/03 at 101.00 AAA 3,759,525
Regional Airport, Revenue Bonds, Series 1992,
6.000%, 1/01/12 (Alternative Minimum Tax)
3,750 Port of Oakland, California, Revenue Bonds, Series 1992-E, 11/02 at 102.00 AAA 3,843,188
6.500%, 11/01/16 (Alternative Minimum Tax)
1,000 Port of Oakland, California, Revenue Bonds, Series 2002M, 11/12 at 100.00 AAA 1,100,690
5.250%, 11/01/20
2,500 Port of Oakland, California, Revenue Bonds, Series 2002N, 11/12 at 100.00 AAA 2,609,625
5.000%, 11/01/22 (Alternative Minimum Tax)
(WI, settling 10/10/02)
820 Airports Commission of the City and County of San Francisco, 5/03 at 102.00 AAA 855,096
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 4 Refunding, 6.200%, 5/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 7.4%
4,000 County of San Diego, California, Certificates of Participation 8/04 at 102.00 AAA 4,470,880
(1994 Inmate Reception Center and Cooling Plant Financing),
6.750%, 8/01/14 (Pre-refunded to 8/01/04)
1,330 Airports Commission of the City and County of San Francisco, 5/03 at 102.00 AAA 1,391,672
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 4 Refunding, 6.200%, 5/01/20
(Alternative Minimum Tax) (Pre-refunded to 5/01/03)
1,000 Tulare County, California, Certificates of Participation 11/02 at 102.00 AAA 1,025,880
(1992 Financing Project), Series A, 6.125%, 11/15/12
(Pre-refunded to 11/15/02)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.4%
2,550 M-S-R Public Power Agency, California, San Juan Project Revenue 1/03 at 100.00 AAA 2,572,925
Bonds, Series 1991E, 6.000%, 7/01/22
1,225 Turlock Irrigation District, California, Revenue Bonds, No Opt. Call AAA 1,518,228
Series 1992A Refunding, 6.250%, 1/01/12
25
Nuveen California Select Tax-Free Income Portfolio (NXC) (continued)
Portfolio of Investments September 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.6%
$ 3,000 Contra Costa Water District, California, Water Revenue Bonds, 10/04 at 102.00 AAA $3,069,270
Series G, 5.000%, 10/01/24
2,925 Department of Water and Power of the City of Los Angeles, 5/03 at 102.00 AAA 2,959,895
California, Water Works Refunding Revenue Bonds, Second
Issue of 1993, 4.500%, 5/15/18
2,800 City of Los Angeles, California, Wastewater System Revenue 6/08 at 101.00 AAA 2,913,063
Bonds, Series 1998-A, 5.000%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
$ 91,430 Total Long-Term Investments (cost $84,458,151) - 96.4% 90,155,076
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 5.3%
2,900 California Pollution Control Financing Authority, Pollution Control VMIG-1 2,900,000
Revenue Bonds (ExxonMobil Project Refunding), Variable Rate
Demand Bonds, Series 2000, 1.850%, 4/01/17+
2,100 Stockton, California, Health Facilities Revenue Bonds (Dameron VMIG-1 2,100,000
Hospital Association), Variable Rate Demand Obligations,
Series 2002A, 1.950%, 12/01/32+
------------------------------------------------------------------------------------------------------------------------------------
$ 5,000 Total Short-Term Investments (cost $5,000,000) 5,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (1.7)% (1,668,560)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $93,486,516
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
26
Nuveen New York Select Tax-Free Income Portfolio (NXN)
Portfolio of
Investments September 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.4%
$ 2,500 TSASC, Inc., New York, Tobacco Asset-Backed Bonds, 7/12 at 100.00 Aa1 $2,542,375
Series 2002-1, 5.500%, 7/15/24
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 19.3%
1,700 Town of Amherst Industrial Development Agency, New York, 8/12 at 101.00 AAA 1,787,805
Civic Facility Revenue Bonds, UBF Faculty-Student Housing
Corporation (Creekside Project), 2002 Series A, 5.000%, 8/01/22
1,000 New York City Industrial Development Agency, Civic Facility 11/04 at 102.00 AAA 1,114,970
Revenue Bonds (USTA National Tennis Center Incorporated
Project), 6.375%, 11/15/14
570 Dormitory Authority of the State of New York, City University No Opt. Call AAA 699,971
System Consolidated Second General Resolution Revenue
Bonds, Series 1990C, 7.500%, 7/01/10
1,100 Dormitory Authority of the State of New York, Mount Sinai School 1/03 at 101.00 AAA 1,115,752
of Medicine, Insured Revenue Bonds, Series 1991,
6.750%, 7/01/15
2,500 Dormitory Authority of the State of New York, Marist College, 1/03 at 102.00 AAA 2,558,700
Insured Revenue Bonds, Series 1992, 6.000%, 7/01/12
1,425 Dormitory Authority of the State of New York, Rochester 7/07 at 101.00 AAA 1,490,735
Institute of Technology, Insured Revenue Bonds, Series 1997,
5.250%, 7/01/22
1,430 Dormitory Authority of the State of New York, Upstate Community 7/11 at 101.00 AA- 1,485,999
Colleges, Revenue Bonds, Series 2002A, 5.000%, 7/01/23
785 Dormitory Authority of the State of New York, Iona College, 7/12 at 100.00 AAA 818,488
Insured Revenue Bonds, Series 2002, 5.000%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 5.4%
1,680 Dormitory Authority of the State of New York, Winthrop South 7/11 at 101.00 AAA 1,838,390
Nassau University Health System Obligated Group, Winthrop
University Hospital Association Revenue Bonds, Series 2001A,
5.250%, 7/01/17
1,195 Dormitory Authority of the State of New York, Winthrop South 7/11 at 101.00 AAA 1,307,665
Nassau University Health System Obligation Group, South
Nassau Communities Hospital Revenue Bonds, Series 2001B,
5.250%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.3%
1,320 New Hartford Housing Development Corporation, New York, 1/03 at 100.00 AAA 1,322,323
Mortgage Revenue Refunding Bonds (Village Point Project -
FHA-Insured Mortgage Loan - Section 8 Assisted Project),
Series 1992-A, 7.375%, 1/01/24
1,000 New Hartford-Sunset Woods Funding Corporation, New York, 8/12 at 101.00 AAA 1,057,880
FHA-Insured Mortgage Revenue Bonds (Sunset Woods
Apartments II Project), Series 2002, 5.350%, 2/01/20
1,245 New York State Housing Finance Agency, FHA-Insured Multifamily 2/03 at 102.00 AAA 1,271,780
Housing Mortgage Revenue Bonds, Series 1992C,
6.450%, 8/15/14
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.0%
2,500 State of New York Mortgage Agency, Mortgage Revenue Bonds, 4/11 at 100.00 Aaa 2,567,100
Thirty-First Series A, 5.300%, 10/01/31 (Alternative
Minimum Tax)
2,000 State of New York Mortgage Agency, Homeowner Mortgage 10/11 at 100.00 Aa1 2,073,360
Revenue Bonds, Series 101, 5.000%, 10/01/18 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 9.0%
2,000 East Rochester Housing Authority, New York, Jewish Home of 8/12 at 101.00 AAA 2,081,600
Rochester Revenue Bonds, FHA-Insured Mortgage,
Series 2002 Refunding, 4.625%, 2/15/17
1,000 New York City Industrial Development Agency, New York, 11/12 at 101.00 AAA 1,001,660
GNMA Collateralized Mortgage Revenue Bonds, Eger Harbor
House, Inc. Project, Series 2002A, 4.950%, 11/20/32
(WI, settling 10/03/02)
2,000 Dormitory Authority of the State of New York, Norwegian 8/11 at 101.00 AAA 2,096,460
Christian Home and Health Center, FHA- Insured Mortgage
Nursing Home Revenue Bonds, Series 2001, 5.200%, 8/01/36
27
Nuveen New York Select Tax-Free Income Portfolio (NXN) (continued)
Portfolio of Investments September 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 5.0%
Town of Clarkstown, Rickland County, New York, Various Purpose
Serial Bonds, Series 1992:
$ 505 5.600%, 6/15/10 No Opt. Call AAA $ 589,441
525 5.600%, 6/15/11 No Opt. Call AAA 618,765
525 5.600%, 6/15/12 No Opt. Call AAA 619,558
10 City of New York, New York, General Obligation Bonds, 2/03 at 101.50 AAA 10,187
Fiscal 1992 Series C, 6.250%, 8/01/11
1,000 West Islip Union Free School District, Suffolk County, New York, 10/10 at 100.00 Aaa 1,071,090
General Obligation Bonds, Series 2001, 5.000%, 10/01/17
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 2.2%
1,000 Nassau County Interim Finance Authority, New York, Sales 11/06 at 101.00 AAA 1,038,700
Tax Secured Revenue Bonds, Series 2001-A2, 5.125%, 11/15/21
200 New York State Thruway Authority, Highway and Bridge Trust 4/05 at 102.00 AAA 209,984
Fund Bonds, Series 1995B, 5.125%, 4/01/15
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.7%
2,500 Port Authority of New York and New Jersey, Consolidated 1/05 at 101.00 AAA 2,729,900
Bonds, Ninety-Seventh Series, 6.500%, 7/15/19 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 16.5%
2,000 City of New York, New York, General Obligation Bonds, 8/04 at 101.00 AAA 2,222,960
Fiscal 1995 Series B1, 6.950%, 8/15/12 (Pre-refunded
to 8/15/04)
1,465 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 1,889,249
Lease Revenue Bonds (Suffolk County Issue), Series 1986,
7.375%, 7/01/16
1,865 New York State Medical Care Facilities Finance Agency, Hospital 8/04 at 100.00 AAA 1,984,528
and Nursing Home FHA-Insured Mortgage Revenue Bonds,
1992 Series C, 6.250%, 8/15/12 (Pre-refunded to 8/15/04)
2,500 New York State Medical Care Facilities Finance Agency, 2/05 at 102.00 AAA 2,845,375
New York Hospital FHA-Insured Mortgage Revenue Bonds,
1994 Series A, 6.750%, 8/15/14 (Pre-refunded to 2/15/05)
485 Suffolk County Water Authority, New York, Waterworks Revenue No Opt. Call AAA 596,259
Bonds, Series 1986-V, 6.750%, 6/01/12
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 1.8%
1,000 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 1,041,990
Revenue Bonds, Series 1998A, 5.125%, 12/01/22
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.7%
2,500 New York City Municipal Water Finance Authority, Water and 6/11 at 101.00 AA 2,612,626
Sewer System Revenue Bonds, Fiscal 2001 Series C,
5.125%, 6/15/33
New York State Environmental Facilities Corporation, State Clean
Water and Drinking Water Revolving Funds, Second Resolution
Revenue Bonds, Series 2002B, New York City Municipal Water
Finance Authority Projects:
2,000 5.250%, 6/15/19 6/12 at 100.00 AAA 2,183,400
3,000 5.000%, 6/15/27 6/12 at 100.00 AAA 3,110,760
------------------------------------------------------------------------------------------------------------------------------------
$ 52,030 Total Long-Term Investments (cost $51,885,557) - 96.3% 55,607,785
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (COST $1,500,000) - 2.6%
$ 1,500 City of New York, New York, General Obligation Adjustable VMIG-1 1,500,000
============= Rate Bonds, Series B (Subseries B-6), 2.050%, 8/15/05+
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 620,110
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $57,727,895
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
28
Statement of
Assets and Liabilities September 30, 2002 (Unaudited)
SELECT SELECT SELECT CALIFORNIA NEW YORK
TAX-FREE TAX-FREE 2 TAX-FREE 3 SELECT TAX-FREE SELECT TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal securities,
at market value $236,831,305 $244,507,384 $168,310,113 $90,155,076 $55,607,785
Temporary investments in short-term securities,
at amortized cost, which approximates
market value 2,000,000 6,100,000 15,030,000 5,000,000 1,500,000
Cash 393,929 452,290 167,879 62,152 1,151,168
Receivables:
Interest 4,466,469 4,608,525 2,766,227 1,303,544 747,406
Investments sold 6,079,941 7,039,400 2,483,483 -- --
Other assets 55,883 59,388 42,952 22,768 14,809
------------------------------------------------------------------------------------------------------------------------------------
Total assets 249,827,527 262,766,987 188,800,654 96,543,540 59,021,168
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased -- -- -- 2,583,800 999,305
Accrued expenses:
Surveillance and administration fees 49,487 62,608 45,449 22,882 14,127
Other 163,336 183,090 154,356 68,661 53,231
Dividends payable 1,113,711 1,170,870 823,222 381,681 226,610
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,326,534 1,416,568 1,023,027 3,057,024 1,293,273
------------------------------------------------------------------------------------------------------------------------------------
Net assets $248,500,993 $261,350,419 $187,777,627 $93,486,516 $57,727,895
====================================================================================================================================
Shares outstanding 16,378,096 17,607,068 12,964,124 6,257,070 3,907,069
====================================================================================================================================
Net asset value per share outstanding
(net assets divided by shares outstanding) $ 15.17 $ 14.84 $ 14.48 $ 14.94 $ 14.78
====================================================================================================================================
NET ASSETS CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 163,781 $ 176,071 $ 129,641 $ 62,571 $ 39,071
Paid-in surplus 227,625,305 245,680,398 178,364,129 87,121,714 53,605,750
Undistributed (Over-distribution of)
net investment income 1,063,251 388,393 143,476 (1,538) (5,685)
Accumulated net realized gain from investments 2,565,403 2,586,853 516,370 606,844 366,531
Net unrealized appreciation of investments 17,083,253 12,518,704 8,624,011 5,696,925 3,722,228
------------------------------------------------------------------------------------------------------------------------------------
Net assets $248,500,993 $261,350,419 $187,777,627 $93,486,516 $57,727,895
====================================================================================================================================
See accompanying notes to financial statements.
29
Statement of
Operations Six Months Ended September 30, 2002 (Unaudited)
SELECT SELECT SELECT CALIFORNIA NEW YORK
TAX-FREE TAX-FREE 2 TAX-FREE 3 SELECT TAX-FREE SELECT TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 6,987,982 $ 7,523,138 $5,316,981 $2,480,514 $1,499,427
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Surveillance and administration fees 297,537 378,610 275,301 137,268 84,575
Shareholders' servicing agent fees and expenses 30,604 28,618 20,481 7,838 5,988
Custodian's fees and expenses 40,398 50,909 28,138 24,354 15,560
Trustees' fees and expenses 15,542 17,548 12,534 6,518 4,513
Professional fees 9,348 9,474 8,365 6,066 5,278
Shareholders' reports - printing and mailing expenses 34,093 34,093 27,073 11,031 8,023
Stock exchange listing fees 12,164 12,164 12,164 8,107 8,250
Investor relations expense 26,791 28,288 20,730 8,819 5,904
Other expenses 5,198 5,619 4,284 2,770 2,199
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 471,675 565,323 409,070 212,771 140,290
Custodian fee credit (15,898) (16,393) (8,204) (7,525) (3,598)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 455,777 548,930 400,866 205,246 136,692
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 6,532,205 6,974,208 4,916,115 2,275,268 1,362,735
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN FROM INVESTMENTS
Net realized gain from investments 1,881,937 1,857,838 1,307,992 607,138 448,298
Change in net unrealized appreciation
(depreciation) of investments 6,739,895 3,920,427 1,850,180 2,641,714 1,953,874
------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 8,621,832 5,778,265 3,158,172 3,248,852 2,402,172
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $15,154,037 $12,752,473 $8,074,287 $5,524,120 $3,764,907
====================================================================================================================================
See accompanying notes to financial statements.
30
Statement of
Changes in Net Assets (Unaudited)
SELECT TAX-FREE (NXP) SELECT TAX-FREE 2 (NXQ) SELECT TAX-FREE 3 (NXR)
------------------------------ ------------------------------- -----------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED 9/30/02 3/31/02 ENDED 9/30/02 3/31/02 ENDED 9/30/02 3/31/02
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 6,532,205 $ 14,424,534 $ 6,974,208 $ 15,094,320 $ 4,916,115 $ 10,498,802
Net realized gain from investments 1,881,937 1,111,671 1,857,838 1,103,729 1,307,992 22,630
Change in net unrealized appreciation
(depreciation) of investments 6,739,895 (7,241,071) 3,920,427 (7,340,586) 1,850,180 (3,682,776)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations 15,154,037 8,295,134 12,752,473 8,857,463 8,074,287 6,838,656
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From and in excess of net
investment income (6,927,936) (14,118,971) (7,289,328) (14,816,349) (5,133,794) (10,345,370)
From accumulated net realized gains
from investments -- (376,696) -- (297,559) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (6,927,936) (14,495,667) (7,289,328) (15,113,908) (5,133,794) (10,345,370)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets 8,226,101 (6,200,533) 5,463,145 (6,256,445) 2,940,493 (3,506,714)
Net assets at the beginning
of period 240,274,892 246,475,425 255,887,274 262,143,719 184,837,134 188,343,848
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $248,500,993 $240,274,892 $261,350,419 $255,887,274 $187,777,627 $184,837,134
====================================================================================================================================
Undistributed (Over-distribution
of) net investment income
at the end of period $ 1,063,251 $ 1,458,982 $ 388,393 $ 703,513 $ 143,476 $ 361,155
====================================================================================================================================
See accompanying notes to financial statements.
31
Statement of
Changes in Net Assets (Unaudited) (continued)
CALIFORNIA SELECT TAX-FREE (NXC) NEW YORK SELECT TAX-FREE (NXN)
-------------------------------- ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED 9/30/02 3/31/02 ENDED 9/30/02 3/31/02
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,275,268 $ 4,853,758 $ 1,362,735 $ 2,848,534
Net realized gain from investments 607,138 149,331 448,298 245,948
Change in net unrealized appreciation
(depreciation) of investments 2,641,714 (2,218,344) 1,953,874 (1,540,357)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations 5,524,120 2,784,745 3,764,907 1,554,125
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From and in excess of net
investment income (2,383,943) (4,805,497) (1,398,748) (2,871,874)
From accumulated net realized gains
from investments -- (150,170) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (2,383,943) (4,955,667) (1,398,748) (2,871,874)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 3,140,177 (2,170,922) 2,366,159 (1,317,749)
Net assets at the beginning of period 90,346,339 92,517,261 55,361,736 56,679,485
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $93,486,516 $90,346,339 $57,727,895 $55,361,736
====================================================================================================================================
Undistributed (Over-distribution
of) net investment income
at the end of period $ (1,538) $ 107,137 $ (5,685) $ 30,328
====================================================================================================================================
See accompanying notes to financial statements.
32
Notes to
Financial Statements (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The Trusts covered in this report and their corresponding Common share New York
Stock Exchange symbols are Nuveen Select Tax-Free Income Portfolio (NXP), Nuveen
Select Tax-Free Income Portfolio 2 (NXQ), Nuveen Select Tax-Free Income
Portfolio 3 (NXR), Nuveen California Select Tax-Free Income Portfolio (NXC) and
Nuveen New York Select Tax-Free Income Portfolio (NXN).
Each Trust seeks to provide stable dividends consistent with the preservation of
capital, exempt from regular federal and designated state income taxes, where
applicable, by investing primarily in a diversified portfolio of municipal
obligations. The Trusts are registered under the Investment Company Act of 1940
as closed-end, diversified management investment companies.
The Trusts' investment adviser, Nuveen Institutional Advisory Corp. ( the
"Adviser"), a wholly owned subsidiary of The John Nuveen Company, administers
the investments and maintains ongoing surveillance of such investments to ensure
that they continue to meet the Trusts' investment objectives and credit quality
standards. The Adviser does not intend to adjust the portfolios except 1) to
invest interest payments on municipal obligations that are not currently needed
to pay dividends or expenses; 2) to reinvest principal payments on municipal
obligations resulting from their maturity or early redemption; 3) to sell
municipal obligations when the Adviser believes that continuing to hold them
would be inconsistent with maintaining the Trusts' high credit quality, and to
reinvest the proceeds of such sales; and 4) for certain other purposes.
The following is a summary of significant accounting policies followed by the
Trusts in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Trusts' investment portfolio are provided
by a pricing service approved by the Trust's Board of Trustees. When price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. If it is determined that market prices for a security are
unavailable or inappropriate, the Board of Trustees of the Trusts may establish
a fair value for the security. Temporary investments in securities that have
variable rate and demand features qualifying them as short-term securities are
valued at amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade-date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. Any securities so purchased are subject to
market fluctuation during this period. The Trusts have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At
September 30, 2002, California Select Tax-Free (NXC) and New York Select
Tax-Free (NXN) had outstanding when-issued purchase commitments of $2,583,800
and $999,305, respectively. There were no such outstanding purchase commitments
in any of the other Trusts.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Income Taxes
Each Trust is a separate taxpayer for federal income tax purposes. Each Trust
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. Therefore, no federal income tax provision is
required. Furthermore, each Trust intends to satisfy conditions which will
enable interest from municipal securities, which is exempt from regular federal
and designated state income taxes, where applicable, to retain such tax-exempt
status when distributed to shareholders of the Trusts.
33
Notes to
Financial Statements (Unaudited) (continued)
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend. Generally,
payment is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount, if any, are recorded on the ex-dividend
date. The amount and timing of distributions are determined in accordance with
federal income tax regulations, which may differ from accounting principles
generally accepted in the United States. Accordingly, temporary
over-distributions as a result of these differences may occur and will be
classified as either distributions in excess of net investment income,
distributions in excess of net realized gains and/or distributions in excess of
net ordinary taxable income from investment transactions, where applicable.
Derivative Financial Instruments
The Trusts are not authorized to invest in derivative financial instruments.
Custodian Fee Credit
Each Trust has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Trust's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
2. TRUST SHARES
There were no share transactions during the six months ended September 30, 2002,
nor during the fiscal year ended March 31, 2002, in any of the Trusts.
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term securities during the six months ended September 30,
2002, were as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
---------------------------------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $63,100,854 $69,323,756 $38,831,424 $27,103,057 $15,512,087
Short-term securities 23,130,000 22,800,000 22,575,000 23,000,000 5,200,000
Sales and maturities:
Long-term municipal securities 70,545,250 82,517,250 55,510,150 29,529,000 14,593,575
Short-term securities 21,130,000 16,700,000 7,545,000 18,000,000 3,700,000
=========================================================================================================
34
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At September 30, 2002, the cost of investments were as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
---------------------------------------------------------------------------------------------------------
Cost of investments $220,747,274 $237,797,862 $174,594,201 $89,412,225 $53,385,557
=========================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at September 30, 2002, were as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
---------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $20,152,120 $14,859,749 $9,441,510 $5,744,255 $3,725,059
Depreciation (2,068,089) (2,050,227) (695,598) (1,404) (2,831)
---------------------------------------------------------------------------------------------------------
Net unrealized appreciation
of investments $18,084,031 $12,809,522 $8,745,912 $5,742,851 $3,722,228
=========================================================================================================
The tax components of undistributed net investment income and net realized gains
at March 31, 2002, the Trusts' last fiscal year end, were as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
---------------------------------------------------------------------------------------------------------
Undistributed tax-exempt income $1,679,360 $1,645,326 $1,100,229 $464,630 $264,758
Undistributed ordinary income* -- -- -- -- --
Undistributed net long-term capital gains 683,466 729,016 -- -- --
=========================================================================================================
The tax character of distributions paid during the Trusts' last fiscal year
ended March 31, 2002, were designated for purposes of the dividends paid
deduction as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
---------------------------------------------------------------------------------------------------------
Distributed from tax-exempt income $14,151,728 $14,842,760 $10,345,372 $4,805,496 $2,883,595
Distributed from ordinary income* -- -- -- -- --
Distributed from net long-term
capital gains 376,696 297,559 -- 150,170 --
=========================================================================================================
* Ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
California Select Tax-Free (NXC) has elected to defer net realized losses from
investments incurred from November 1, 2001 through March 31, 2002 ("post-October
losses") in accordance with Federal income tax regulations. The Fund has $294 of
post-October losses that are treated as having arisen in the following fiscal
year.
At March 31, 2002, the Trusts' last fiscal year end, the following Trusts had
unused capital loss carryforwards available to be applied against future capital
gains, if any. If not applied, the carryforwards will expire as follows:
NEW YORK
SELECT SELECT
TAX-FREE 3 TAX-FREE
(NXR) (NXN)
--------------------------------------------------------------------------------
Expiration year:
2004 $113,514 $77,988
2005 674,505 1,480
2006 3,603 828
2007 -- 933
2008 -- 538
--------------------------------------------------------------------------------
Total $791,622 $81,767
================================================================================
35
Notes to
Financial Statements (Unaudited) (continued)
5. SURVEILLANCE AND ADMINISTRATION FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Trusts' investment management agreements with the Adviser, each Trust
pays an annual surveillance and administration fee, payable monthly, at the
rates set forth below, which are based upon the average daily net assets of each
Trust as follows:
SELECT TAX-FREE 2 (NXQ)
SELECT TAX-FREE 3 (NXR)
CALIFORNIA SELECT TAX-FREE (NXC)
AVERAGE DAILY NET ASSETS SELECT TAX-FREE (NXP) NEW YORK SELECT TAX-FREE (NXN)
--------------------------------------------------------------------------------------------
For the first $125 million .2500% .3000%
For the next $125 million .2375 .2875
For the next $250 million .2250 .2750
For the next $500 million .2125 .2625
For the next $1 billion .2000 .2500
For net assets over $2 billion .1875 .2375
============================================================================================
The fee compensates the Adviser for performing ongoing administration,
surveillance and portfolio adjustment services. The Trusts pay no compensation
directly to those of its Trustees who are affiliated with the Adviser or to
their officers, all of whom receive remuneration for their services to the
Trusts from the Adviser or its affiliates.
6. INVESTMENT COMPOSITION
At September 30, 2002, the revenue sources by municipal purpose, expressed as a
percent of investments, were as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
---------------------------------------------------------------------------------------------------------
Basic Materials 4% 5% --% --% --%
Consumer Staples -- 2 2 -- 4
Education and Civic Organizations 3 4 4 10 19
Energy -- -- -- 3 --
Healthcare 11 12 13 16 6
Housing/Multifamily 2 7 7 -- 6
Housing/Single Family 4 4 4 -- 8
Long-Term Care -- 2 2 -- 9
Tax Obligation/General 10 4 5 18 8
Tax Obligation/Limited 13 9 6 12 2
Transportation 15 18 16 19 5
U.S. Guaranteed 24 22 15 7 17
Utilities 9 9 18 4 2
Water and Sewer 5 1 8 9 14
Other -- 1 -- 2 --
---------------------------------------------------------------------------------------------------------
100% 100% 100% 100% 100%
=========================================================================================================
36
Certain long-term investments owned by the Trusts are covered by insurance
issued by several private insurers or are backed by an escrow or trust
containing U.S. Government or U.S. Government agency securities, both of which
ensure the timely payment of principal and interest in the event of default (54%
for Select Tax-Free (NXP), 63% for Select Tax-Free 2 (NXQ), 50% for Select
Tax-Free 3 (NXR), 78% for California Select Tax-Free (NXC), and 64% for New York
Select Tax-Free (NXN)). Such insurance or escrow, however, does not guarantee
the market value of the municipal securities or the value of any of the Trusts'
shares.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Trust.
7. SUBSEQUENT EVENT - DISTRIBUTIONS TO SHAREHOLDERS
The Trusts declared dividend distributions from their tax-exempt net investment
income which were paid November 1, 2002, to shareholders of record on October
15, 2002, as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
---------------------------------------------------------------------------------------------------------
Dividend per share $.0680 $.0665 $.0635 $.0610 $.0580
=========================================================================================================
37
Financial
Highlights (Unaudited)
Selected data for a share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
-------------------------------- ----------------------------
NET FROM AND
REALIZED/ IN EXCESS ENDING
BEGINNING NET UNREALIZED OF NET NET ENDING
NET ASSET INVESTMENT INVESTMENT INVESTMENT CAPITAL ASSET MARKET
VALUE INCOME GAIN (LOSS) TOTAL INCOME GAINS TOTAL VALUE VALUE
====================================================================================================================================
SELECT TAX-FREE (NXP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2003(a) $14.67 $.40 $ .52 $ .92 $(.42) $ -- $(.42) $15.17 $14.4500
2002(b) 15.05 .88 (.38) .50 (.86) (.02) (.88) 14.67 13.8500
2001 14.89 .91 .15 1.06 (.90) -- (.90) 15.05 14.5000
2000 15.55 .90 (.66) .24 (.90) -- (.90) 14.89 13.6875
1999 15.62 .90 (.07) .83 (.90) -- (.90) 15.55 16.3750
1998 15.15 .90 .47 1.37 (.90) -- (.90) 15.62 15.8750
SELECT TAX-FREE 2 (NXQ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2003(a) 14.53 .40 .32 .72 (.41) -- (.41) 14.84 14.5800
2002(b) 14.89 .86 (.36) .50 (.84) (.02) (.86) 14.53 13.6600
2001 14.75 .87 .14 1.01 (.87) -- (.87) 14.89 14.1500
2000 15.41 .87 (.66) .21 (.87) -- (.87) 14.75 13.3750
1999 15.43 .87 (.02) .85 (.87) -- (.87) 15.41 15.8750
1998 14.95 .88 .49 1.37 (.89) -- (.89) 15.43 15.3125
SELECT TAX-FREE 3 (NXR)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2003(a) 14.26 .38 .24 .62 (.40) -- (.40) 14.48 14.1100
2002(b) 14.53 .81 (.28) .53 (.80) -- (.80) 14.26 13.4200
2001 14.32 .81 .21 1.02 (.81) -- (.81) 14.53 13.7000
2000 14.98 .82 (.66) .16 (.82) -- (.82) 14.32 12.8750
1999 14.96 .82 .02 .84 (.82) -- (.82) 14.98 15.2500
1998 14.35 .82 .62 1.44 (.83) -- (.83) 14.96 14.9375
CALIFORNIA SELECT TAX-FREE (NXC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2003(a) 14.44 .36 .52 .88 (.38) -- (.38) 14.94 15.1900
2002(b) 14.79 .78 (.34) .44 (.77) (.02) (.79) 14.44 14.2500
2001 14.57 .79 .23 1.02 (.79) (.01) (.80) 14.79 13.9400
2000 15.26 .79 (.67) .12 (.79) (.02) (.81) 14.57 13.7500
1999 15.21 .79 .05 .84 (.79) -- (.79) 15.26 15.7500
1998 14.53 .79 .69 1.48 (.80) -- (.80) 15.21 15.3125
NEW YORK SELECT TAX-FREE (NXN)
Year Ended 3/31:
------------------------------------------------------------------------------------------------------------------------------------
2003(a) 14.17 .35 .62 .97 (.36) -- (.36) 14.78 14.1000
2002(b) 14.51 .73 (.33) .40 (.74) -- (.74) 14.17 13.7600
2001 14.31 .78 .20 .98 (.78) -- (.78) 14.51 14.0500
2000 14.92 .78 (.61) .17 (.78) -- (.78) 14.31 12.6875
1999 14.91 .78 .01 .79 (.78) -- (.78) 14.92 15.1250
1998 14.28 .78 .63 1.41 (.78) -- (.78) 14.91 15.0000
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------------------
TOTAL RETURNS BEFORE CREDIT AFTER CREDIT***
-------------------- ----------------------------- -------------------------
RATIO OF NET RATIO OF NET
BASED ON ENDING RATIO OF INVESTMENT RATIO OF INVESTMENT
BASED ON NET NET EXPENSES TO INCOME TO EXPENSES TO INCOME TO PORTFOLIO
MARKET ASSET ASSETS AVERAGE AVERAGE AVERAGE AVERAGE TURNOVER
VALUE** VALUE** (000) NET ASSETS NET ASSETS NET ASSETS NET ASSETS RATE
====================================================================================================================================
SELECT TAX-FREE (NXP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2003(a) 7.44% 6.38% $248,501 .39%* 5.34%* .37%* 5.35%* 27%
2002(b) 1.54 3.41 240,275 .38 5.89 .37 5.89 26
2001 12.63 7.32 246,475 .35 6.06 .35 6.07 2
2000 (11.09) 1.62 243,814 .36 5.97 .36 5.97 --
1999 9.02 5.43 254,635 .36 5.78 .36 5.78 1
1998 14.06 9.24 255,865 .36 5.83 .36 5.83 1
SELECT TAX-FREE 2 (NXQ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2003(a) 9.89 5.05 261,350 .44* 5.39* .43* 5.40* 28
2002(b) 2.57 3.41 255,887 .43 5.79 .42 5.80 21
2001 12.46 7.04 262,144 .41 5.89 .40 5.90 2
2000 (10.38) 1.43 259,660 .40 5.82 .40 5.82 1
1999 9.51 5.63 271,240 .40 5.65 .40 5.65 1
1998 14.92 9.34 271,752 .40 5.72 .40 5.72 --
SELECT TAX-FREE 3 (NXR)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2003(a) 8.22 4.38 187,778 .44* 5.27* .43* 5.28* 22
2002(b) 3.84 3.70 184,837 .44 5.59 .42 5.60 9
2001 12.97 7.36 188,344 .47 5.66 .46 5.67 2
2000 (10.29) 1.11 185,671 .41 5.65 .41 5.65 --
1999 7.78 5.76 194,165 .42 5.45 .42 5.45 --
1998 19.38 10.24 193,899 .42 5.56 .42 5.56 --
CALIFORNIA SELECT TAX-FREE (NXC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2003(a) 9.35 6.19 93,487 .46* 4.96* .45* 4.97* 31
2002(b) 7.95 3.03 90,346 .44 5.27 .43 5.28 12
2001 7.23 7.21 92,517 .43 5.38 .42 5.39 2
2000 (7.57) .90 91,166 .45 5.37 .45 5.38 3
1999 8.22 5.65 95,501 .44 5.20 .44 5.20 1
1998 16.52 10.41 95,164 .44 5.31 .44 5.31 --
NEW YORK SELECT TAX-FREE (NXN)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2003(a) 5.14 6.92 57,728 .50* 4.82* .48* 4.83* 28
2002(b) 3.17 2.75 55,362 .49 5.04 .48 5.05 28
2001 17.36 7.02 56,679 .48 5.39 .47 5.40 3
2000 (11.18) 1.21 55,924 .50 5.36 .49 5.37 --
1999 6.14 5.40 58,303 .49 5.19 .49 5.19 --
1998 18.31 10.07 58,250 .49 5.30 .49 5.30 --
====================================================================================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Net Asset Value is the
combination of reinvested dividend income, reinvested capital gains
distributions, if any, and changes in net asset value per share. Total
returns are not annualized.
*** After custodian fee credit, where applicable.
(a) For the six months ended September 30, 2002.
(b) As required, effective April 1, 2001, the Trusts adopted the provisions of
the new AICPA Audit and Accounting Guide for Investment Companies and began
accreting taxable market discount on debt securities. The effect of this
change for the fiscal year ended March 31, 2002, was to increase net
investment income per share with a corresponding decrease in net
realized/unrealized investment gain (loss) per share and increase the ratio
of net investment income to average net assets as follows:
SELECT SELECT SELECT CALIFORNIA SELECT NEW YORK SELECT
TAX-FREE (NXP) TAX-FREE 2 (NXQ) TAX-FREE 3 (NXR) TAX-FREE (NXC) TAX-FREE (NXN)
--------------------------------------------------------------------------------------------
2002 per share impact ($) .01 -- -- -- --
2002 income ratio impact (%) .05 .01 .01 .01 --
The Financial Highlights for the prior periods have not been restated to
reflect this change in presentation.
38-39 SPREAD
Build Your Wealth
Automatically
Sidebar text:
Nuveen makes reinvesting easy. A phone call is all it takes to set up your
reinvestment account.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
40
Fund
Information
BOARD OF TRUSTEES
James F. Bacon
William E. Bennett
Jack B. Evans
William T. Kissick
Thomas E. Leafstrand
Timothy R. Schwertfeger
Sheila W. Wellington
FUND MANAGER
Nuveen Institutional Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank &Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
Nuveen Investments
P.O. Box 43071
Providence, RI02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler
Chicago, IL
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common stock in the future at
such times and in such amounts as is deemed advisable. No shares were
repurchased during the six-month period ended September 30, 2002. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
41
Serving Investors
for Generations
Photo of: John Nuveen, Sr.
For over a century, generations of Americans have relied on Nuveen Investments
to help them grow and keep the money they've earned. Financial advisors,
investors and their families have associated Nuveen Investments with quality,
expertise and dependability since 1898. That is why financial advisors have
entrusted the assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen Investments' products and services can help
you preserve your financial security, talk with your financial advisor, or call
us at (800) 257-8787 for more information, including a prospectus where
applicable. Please read that information carefully before you invest.
Logo: NUVEEN Investments
Nuveen Investments o 333 West Wacker Drive
Chicago, IL 60606 o www.nuveen.com ESA-A-0902