UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-6623
---------------------
Nuveen California Select Tax-Free Income Portfolio
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: March 31
------------------
Date of reporting period: September 30, 2005
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMIANNUAL REPORT September 30, 2005
Nuveen Investments
Municipal Exchange-Traded
Closed-End Funds
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO
NXP
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 2
NXQ
NUVEEN SELECT TAX-FREE INCOME PORTFOLIO 3
NXR
NUVEEN CALIFORNIA SELECT TAX-FREE INCOME PORTFOLIO
NXC
NUVEEN NEW YORK SELECT TAX-FREE INCOME PORTFOLIO
NXN
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DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU
KEEP.(R)
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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the six-month period covered by
this report your Fund continued to provide you with monthly tax-free income, as
well as with an attractive total return. For more details about the management
strategy and performance of your Fund, please see the Portfolio Managers'
Comments and Performance Overview sections of this report.
Given the rebounding strength of the economy, some market commentators are
speculating about whether longer-term interest rates will soon begin to rise
substantially, mirroring the rise that has taken place in shorter-term rates. If
longer-term rates do begin to rise significantly, some have suggested that this
would be a signal to begin adjusting your holdings of fixed-income investments.
"IN FACT, A WELL-DIVERSIFIED PORTFOLIO MAY ACTUALLY HELP TO REDUCE YOUR OVERALL
INVESTMENT RISK OVER THE LONG TERM."
Nobody knows what the market will do in the future or what investments will turn
out to be tomorrow's best performers. But from our experience, we do know that a
well-balanced portfolio, structured and carefully monitored with the help of a
trusted investment professional, can be an important component in helping you
achieve your long-term financial goals. In fact, a well-diversified portfolio
may actually help to reduce your overall investment risk over the long term.
That is one reason why we believe that a municipal bond investment like your
Fund can be an important building block in a comprehensive investment program
designed to perform well in a variety of market conditions.
As an added convenience for you, I urge you to consider receiving future Fund
reports and other Fund information by e-mail and the Internet. Not only will you
be able to receive the information faster, but this also may help lower your
Fund's expenses. Sign up is quick and easy - see the inside front cover of this
report for instructions.
Earlier in 2005, The St. Paul Travelers Companies, Inc., which owned 79% of
Nuveen Investments, Inc. (the parent of your Fund's investment adviser), sold a
substantial portion of its stake in Nuveen. More recently, St. Paul sold the
balance of its shares to Nuveen Investments or to others. Please be assured that
these transactions only affect Nuveen's corporate structure, and they do not
have any impact on the investment objectives or management of your Fund.
At Nuveen Investments, our mission continues to be to assist you and your
financial advisor by offering investment services and products that can help you
to secure your financial objectives. We are grateful that you have chosen us as
a partner as you pursue your financial goals, and we look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
November 15, 2005
Nuveen Municipal Exchange-Traded Closed-End Funds
(NXP, NXQ, NXR, NXC, NXN)
Portfolio Managers'
COMMENTS
Portfolio managers Tom Spalding, Scott Romans and Paul Brennan discuss key
investment strategies and the semiannual performance of the Nuveen Select
Portfolios. With 30 years of investment experience, Tom has managed the three
national Portfolios since 1999. Scott, who joined Nuveen in 2000, has managed
NXC since 2003. Paul, who has 14 years of investment experience, has managed NXN
since 2003.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN SELECT PORTFOLIOS DURING THE
SIX MONTHS ENDED SEPTEMBER 30, 2005?
Between April 1, 2005, and September 30, 2005, the Federal Reserve implemented
four quarter-point increases in the fed funds rate, raising this short-term
target from 2.75% to 3.75%, its highest point since August 2001. Many
shorter-term municipal market rates rose in line with the 100-basis point
increase in this rate. By comparison, the yield on the benchmark 10-year U.S.
Treasury note ended September 2005 at 4.33%, compared with 4.48% six months
earlier. The yield on the Bond Buyer 25 Revenue Bond Index, a widely followed
measure of longer-term municipal rates, was 5.04% on September 30, 2005, just
one basis point higher than it was on March 31, 2005. The dramatic rise in
shorter-term rates coupled with longer rates that declined or remained steady
over this period produced an overall flattening of the yield curve, which
generally helped the relative performance of bonds with longer effective
maturities when compared with bonds with shorter maturities or durations.
(Duration is a measure of a bond's price sensitivity as interest rates change,
with longer duration bonds being more sensitive to changes - which can be
beneficial when longer-term rates decline or remain relatively flat, as was the
case during this period.)
Given this environment, we selectively sold holdings with shorter maturities,
including pre-refunded bonds and bonds priced to short calls. The proceeds from
these sales, as well as those from bond calls, were then reinvested in
longer-maturity bonds. In general, we focused on trying to find value
opportunities in the long-intermediate part of the yield curve (that is, bonds
that mature in 20 to 25 years). As the period progressed, we began to make some
of our purchases at the 30-year part of the curve in order to maintain
durations within our preferred strategic range. In addition, selling shorter
duration bonds and reinvesting further out on the yield curve helped to improve
the overall call protection of the Portfolios.
4
A solid supply of new issuance also helped us keep the national Portfolios--NXP,
NXQ and NXR--well diversified geographically, with California, Texas, Illinois,
Colorado and Washington representing some of our larger positions. These
Portfolios had very little exposure to Louisiana and Mississippi--approximately
2% in NXP and NXQ and less than 1% in NXR--during this period.
Over this semiannual period, lower-rated bonds generally performed very well,
and this created considerable investor demand for these securities. As a result,
we did not find many attractively-priced opportunities among lower-rated bonds
that we believed would add value to the national Portfolios or NXN. However, the
California market provided a few opportunities that enabled us to continue to
diversify NXC's lower-rated holdings, especially in the healthcare sector.
During this period, for example, we added modest positions in a BBB+ rated issue
for the Daughters of Charity Health System and in A3 rated bonds issued for
Cedars-Sinai Medical Center.
In general, however, our purchases focused on bonds that were insured and/or
rated AAA, where we found prices generally more attractive. In NXN, we
participated in some of the larger issues of this period, including the insured
$2.8 billion New York State Thruway Authority offering in August 2005 as well as
insured issues from New York City, Metropolitan Transit Authority, and Port
Authority of New York and New Jersey.
5
HOW DID THE PORTFOLIOS PERFORM?
Individual results for the Nuveen Select Portfolios, as well as for comparative
indexes and fund group averages, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 9/30/05
NATIONAL PORTFOLIOS 6-MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NXP 3.30% 5.04% 5.78% 5.86%
--------------------------------------------------------------------------------
NXQ 3.28% 5.32% 5.44% 5.65%
--------------------------------------------------------------------------------
NXR 3.40% 5.49% 5.53% 5.81%
--------------------------------------------------------------------------------
Lehman Brothers
Municipal Bond Index1 2.80% 4.05% 6.34% 6.07%
--------------------------------------------------------------------------------
Lipper General and Insured
Unleveraged Municipal
Debt Funds Average2 3.37% 5.63% 5.60% 5.63%
--------------------------------------------------------------------------------
CALIFORNIA PORTFOLIO
--------------------------------------------------------------------------------
NXC 3.65% 5.33% 5.54% 5.75%
--------------------------------------------------------------------------------
Lehman Brothers CA
Tax-Exempt Bond Index1 3.25% 5.04% 6.26% 6.26%
--------------------------------------------------------------------------------
Lipper CA Municipal
Debt Funds Average2 4.67% 8.03% 8.03% 7.13%
--------------------------------------------------------------------------------
NEW YORK PORTFOLIO
--------------------------------------------------------------------------------
NXN 3.02% 4.60% 5.38% 5.50%
--------------------------------------------------------------------------------
Lehman Brothers NY
Tax-Exempt Bond Index1 2.62% 3.74% 6.25% 6.18%
--------------------------------------------------------------------------------
Lipper NY Municipal
Debt Funds Average2 4.62% 7.97% 8.45% 7.04%
--------------------------------------------------------------------------------
* Six-month returns are cumulative; returns for one year, five years, and ten
years are annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Portfolio distributions or upon the
sale of Portfolio shares.
For additional information, see the individual Performance Overview for your
Portfolio in this report.
1 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged national
index containing a broad range of investment-grade municipal bonds. The Lehman
Brothers Tax-Exempt Bond Indexes for California and New York are also
unleveraged and unmanaged and comprise a broad range of municipal bonds issued
in California and New York, respectively. Results for the Lehman indexes do
not reflect any expenses.
2 Each of the Lipper Municipal Debt Funds averages shown in this report are
calculated using the returns of all closed-end exchange-traded funds in their
respective categories for each period as follows: Lipper General and Insured
Unleveraged category, 6 months, 8 funds; 1 year, 8 funds; 5 years, 8 funds;
and 10 years, 8 funds; Lipper California category, 6 months, 27 funds; 1 year,
27 funds; 5 years, 16 funds; and 10 years, 14 funds; and Lipper New York
category, 6 months, 22 funds; 1 year, 22 funds; 5 years, 11 funds; and 10
years, 9 funds. Portfolio and Lipper returns assume reinvestment of dividends.
6
For the six months ended September 30, 2005, the cumulative returns on net asset
value (NAV) for all five Select Portfolios outperformed the returns on the
respective Lehman Brothers indexes. NXP, NXQ and NXR all performed in line with
the Lipper General and Insured Unleveraged peer group for this period, while
both NXC and NXN underperformed the average returns for their respective Lipper
California and New York peer groups. The strong performances of the Lipper peer
groups for California and New York are due in large part to the fact that the
majority of funds comprising these averages are leveraged, a strategy that often
offers enhanced returns accompanied by additional risk exposure.
As noted earlier, the municipal market yield curve flattened over the course of
this reporting period as short-term interest rates rose dramatically while
longer-term interest rates remained essentially flat. In this environment,
longer maturity bonds generally performed better than securities with shorter
maturities. Our trading activity over the past six months, which emphasized
reducing the Portfolios' exposure to bonds with shorter maturities and
reinvesting in bonds in the intermediate and long parts of the yield curve,
helped the performances of all five Portfolios for the period.
All of the Portfolios also benefited from their exposure to lower-rated credits
during this period, as these bonds generally outperformed higher-rated
securities. Among the lower-rated credits making significant contributions to
the Portfolios' cumulative returns were bonds backed by the 1998 master tobacco
settlement agreement. As the litigation environment improved, supply/demand
dynamics boosted tobacco bond prices. Unenhanced tobacco holdings, which were
generally rated BBB, accounted for between 4% and 6% of the national Portfolios,
while NXC and NXN each allocated 2% to these credits as of September 30, 2005.
Lower-rated healthcare bonds, especially hospital credits, also contributed
positively to the Portfolios' semiannual performances, as the healthcare sector
was ranked second by Lehman in terms of performance among all municipal revenue
sectors for the period.
NXC's holdings of California general obligation (GO) bonds also made a positive
contribution to this Portfolio's return over the six months, as both Moody's and
Fitch upgraded their ratings on California's GO debt in July 2005. In addition,
the value of was positively impacted during this period by Moody's and Standard
& Poor's upgrades of the ratings on New York City GO bonds in April and May
2005, respectively.
7
Another factor affecting the performances of the Portfolios during this period
was the advance refunding of securities. (Advance refundings, also called
pre-refundings, occur when an issuer sells new bonds and uses the proceeds to
fund principal and interest payments of older, existing bonds. This process
often results in lower borrowing costs for bond issuers.) The interest rate
environment of the six-month period made advance refundings more economically
attractive, and the number of refinancings rose significantly. The Portfolios
benefited from the price appreciation and enhanced credit quality associated
with these refundings. For example, NXC's performance was helped by the advance
refunding of BBB rated tobacco bonds issued by Golden State Tobacco
Securitization Corporation. NXN saw several of its holdings pre-refunded,
including a BBB- rated Yonkers Inc. industrial development issue which was sold
prior to the end of the reporting period.
More generally, the amount and timing of an advance refunding of a holding had a
great deal of impact on whether this event ultimately helped or hurt the
Portfolio's overall performance over the period. Usually, a bond that was
advance refunded tended to benefit from an immediate price increase as its
credit quality was upgraded (because the bond is now backed by U.S. Government
or agency securities). However, that same bond - now priced as a high quality
issue to a shorter final maturity - might then have underperformed lower quality
issues and issues with longer final maturities over the balance of the reporting
period. Therefore, the size of the holding, the credit quality boost caused by
the pre-refunding and the amount of time remaining before the end of the
reporting period all had an impact on the overall performance of a pre-refunded
bond.
HOW WERE THE PORTFOLIOS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS
OF SEPTEMBER 30, 2005?
We continued to believe maintaining strong credit quality was an important
requirement. As of September 30, 2005, these five Portfolios continued to offer
excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed
and AA ranging from 65% in NXC to 73% in NXR, 75% in NXP, 81% in NXQ and 93% in
NXN.
As of September 30, 2005, potential call exposure for these Portfolios for the
period from October 2005 through the end of 2007 ranged from 3% in NXN to 7% in
NXC, 11% in NXP, 13% in NXR and 19% in NXQ. The number of actual bond calls in
all of these Portfolios depends largely on future market interest rates.
8
Dividend and Share Price
INFORMATION
Throughout the six-month reporting period ended September 30, 2005, NXP, NXQ and
NXC maintained stable dividends. However, proceeds from calls and maturing
higher-yielding bonds had to be reinvested in the current interest rate
environment. This resulted in one monthly dividend reduction in NXR and NXN
during this period.
All of these Portfolios seek to pay stable dividends at rates that reflect each
Portfolio's past results and projected future performance. During certain
periods, each Portfolio may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Portfolio during
the period. If a Portfolio has cumulatively earned more than it has paid in
dividends, it holds the excess in reserve as undistributed net investment income
(UNII) as part of the Portfolio's NAV. Conversely, if a Portfolio has
cumulatively paid dividends in excess of its earnings, the excess constitutes
negative UNII that is likewise reflected in the Portfolio's NAV. Each Portfolio
will, over time, pay all of its net investment income as dividends to
shareholders. As of September 30, 2005, all of the Select Portfolios had
positive UNII balances for tax purposes and negative UNII balances for financial
statement purposes.
At the end of the reporting period on September 30, 2005, the share prices of
the Select Portfolios were trading at discounts to their NAVs as shown in the
accompanying chart:
9/30/05 6-MONTH AVERAGE
DISCOUNT DISCOUNT
--------------------------------------------------------------------------------
NXP -1.42% -4.89%
--------------------------------------------------------------------------------
NXQ -6.61% -7.82%
--------------------------------------------------------------------------------
NXR -7.86% -8.18%
--------------------------------------------------------------------------------
NXC -3.46% -6.32%
--------------------------------------------------------------------------------
NXN -5.90% -3.41%
--------------------------------------------------------------------------------
9
Nuveen Select Tax-Free Income Portfolio
NXP
Performance
OVERVIEW As of September 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 59%
AA 16%
A 15%
BBB 9%
BB or Lower 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.059
Nov 0.059
Dec 0.057
Jan 0.057
Feb 0.057
Mar 0.057
Apr 0.057
May 0.057
Jun 0.057
Jul 0.057
Aug 0.057
Sep 0.057
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
10/1/04 13.73
13.78
13.82
13.69
13.74
13.9
13.85
13.9
13.85
13.8
13.8
13.76
13.85
13.91
13.91
13.94
14
13.87
13.83
13.79
13.89
13.78
13.8
13.84
13.88
13.66
13.45
13.63
13.66
13.82
13.78
13.69
13.65
13.64
13.61
13.55
13.56
13.61
13.6
13.63
13.51
13.54
13.48
13.48
13.75
13.64
13.61
13.63
13.65
13.6
13.42
13.42
13.47
13.35
13.31
13.37
13.38
13.49
13.43
13.36
13.34
13.37
13.36
13.34
13.53
13.59
13.7
13.55
13.56
13.53
13.53
13.47
13.44
13.51
13.71
13.59
13.65
13.7
13.74
13.68
13.7
13.81
13.73
13.7
13.77
13.89
13.94
13.92
13.85
14
14.03
14.05
14.2
14.11
14.06
14.13
14
13.82
13.8
13.84
13.94
14.05
13.942
13.98
13.96
14
13.98
13.93
14.03
14
13.95
13.96
13.87
13.87
13.87
13.8
13.84
13.74
13.65
13.54
13.45
13.48
13.5
13.6
13.5
13.62
13.58
13.56
13.59
13.709
13.84
13.72
14
14.02
13.88
13.86
13.79
13.8
13.67
13.92
13.99
13.94
13.9
13.87
13.99
13.95
13.95
13.87
13.98
14.03
14.17
14.12
14.23
14.21
14.2
14.02
13.95
14.07
14.132
14.2
14.11
14.01
14.05
14.11
14.18
14.18
14.2
14.16
14.27
14.26
14.31
14.25
14.29
14.27
14.15
14.09
14.07
13.99
14
13.96
14.02
13.99
14.08
14.08
14.1
14
14.02
14.04
14.01
14.05
13.98
13.95
14.01
13.98
14.07
14.01
14.08
14.06
14.05
14.06
14.06
14.01
14.16
14.17
14.18
14.09
14
14.05
14.16
14.18
14.18
14.2
14.34
14.39
14.4
14.19
14.12
14.1
14.04
13.92
13.9
13.93
13.97
14.02
14.15
14.05
14.34
14.35
14.35
14.26
14.35
14.4
14.31
14.24
14.35
14.37
14.36
14.37
14.47
14.48
14.45
14.29
14.16
14.15
13.97
14.31
14.26
14.36
14.33
14.33
14.23
14.22
14.43
14.54
9/30/05 14.55
FUND SNAPSHOT
------------------------------------
Share Price $14.55
------------------------------------
Net Asset Value $14.76
------------------------------------
Premium/(Discount) to NAV -1.42%
------------------------------------
Market Yield 4.70%
------------------------------------
Taxable-Equivalent Yield1 6.53%
------------------------------------
Net Assets ($000) $241,728
------------------------------------
Average Effective
Maturity on Securities (Years) 15.60
------------------------------------
Modified Duration 5.11
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/19/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 10.39% 3.30%
------------------------------------
1-Year 11.82% 5.04%
------------------------------------
5-Year 6.34% 5.78%
------------------------------------
10-Year 6.06% 5.86%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
Illinois 14.1%
------------------------------------
Colorado 13.5%
------------------------------------
Washington 9.6%
------------------------------------
Texas 8.7%
------------------------------------
Indiana 8.4%
------------------------------------
South Carolina 7.4%
------------------------------------
Florida 7.2%
------------------------------------
Nevada 6.8%
------------------------------------
California 4.4%
------------------------------------
New Jersey 1.9%
------------------------------------
Oklahoma 1.7%
------------------------------------
New Mexico 1.7%
------------------------------------
Michigan 1.7%
------------------------------------
Wisconsin 1.7%
------------------------------------
Other 11.2%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Healthcare 21.8%
------------------------------------
Transportation 14.7%
------------------------------------
Tax Obligation/Limited 13.1%
------------------------------------
U.S. Guaranteed 11.6%
------------------------------------
Utilities 11.4%
------------------------------------
Tax Obligation/General 11.2%
------------------------------------
Water and Sewer 5.4%
------------------------------------
Other 10.8%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a income tax rate of 28%. When comparing
this Fund to investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.1023 per share.
10
Nuveen Select Tax-Free Income Portfolio 2
NXQ
Performance
OVERVIEW As of September 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 60%
AA 21%
A 9%
BBB 9%
BB or Lower 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.0565
Nov 0.0565
Dec 0.055
Jan 0.055
Feb 0.055
Mar 0.055
Apr 0.055
May 0.055
Jun 0.055
Jul 0.055
Aug 0.055
Sep 0.055
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
10/1/04 13.15
13.12
13.09
13.15
13.11
13.17
13.2
13.24
13.17
13.24
13.2
13.23
13.22
13.22
13.2
13.25
13.3
13.27
13.3
13.38
13.35
13.24
13.27
13.28
13.33
13.12
13
13.2
13.1
13.1
13.15
13.13
13.12
13.16
13.18
13.22
13.15
13.12
13.11
13.14
13.09
13.14
13.1
13.03
13.1
13.14
13.06
13.15
13.2
13.14
13.1
13.06
13.06
13
13.02
12.95
12.96
12.98
12.96
12.94
12.94
12.95
12.99
13.01
13.1
13.04
13.14
13.05
13.1
13.12
13.1
13.23
13.1
13.25
13.25
13.16
13.16
13.2
13.15
13.01
13.09
13.1
13.16
13.35
13.3
13.29
13.21
13.3
13.32
13.37
13.42
13.34
13.31
13.36
13.4
13.34
13.31
13.2
13.32
13.3
13.42
13.44
13.45
13.41
13.5
13.38
13.31
13.34
13.38
13.32
13.27
13.15
13.04
13.06
13.05
13.04
12.99
13.01
13.02
13
13
13.15
13
13
13.08
13.16
13.15
13.1
13.12
13.06
13.06
13.04
13.11
13.1
13.05
13.13
13.08
13.12
13.12
13.09
13.04
13.1
13.1
13.1
13.17
13.16
13.16
13.27
13.2
13.23
13.17
13.18
13.27
13.17
13.26
13.21
13.2
13.28
13.25
13.28
13.33
13.26
13.27
13.34
13.34
13.4
13.4
13.44
13.51
13.48
13.56
13.49
13.51
13.57
13.563
13.56
13.45
13.5
13.52
13.47
13.51
13.52
13.53
13.53
13.56
13.51
13.502
13.5
13.53
13.55
13.54
13.52
13.53
13.51
13.61
13.53
13.6
13.57
13.55
13.55
13.48
13.56
13.6
13.5
13.49
13.51
13.52
13.55
13.58
13.59
13.59
13.63
13.61
13.69
13.62
13.5
13.51
13.5
13.6
13.52
13.47
13.5
13.62
13.66
13.64
13.57
13.6
13.55
13.56
13.6
13.6
13.62
13.61
13.76
13.77
13.78
13.81
13.8
13.79
13.82
13.74
13.62
13.54
13.526
13.58
13.58
13.48
13.5
13.44
13.45
13.47
13.46
13.52
13.55
9/30/05 13.56
FUND SNAPSHOT
------------------------------------
Share Price $13.56
------------------------------------
Net Asset Value $14.52
------------------------------------
Premium/(Discount) to NAV -6.61%
------------------------------------
Market Yield 4.87%
------------------------------------
Taxable-Equivalent Yield1 6.76%
------------------------------------
Net Assets ($000) $255,649
------------------------------------
Average Effective
Maturity on Securities (Years) 17.24
------------------------------------
Modified Duration 4.76
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/21/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 6.22% 3.28%
------------------------------------
1-Year 8.51% 5.32%
------------------------------------
5-Year 5.56% 5.44%
------------------------------------
10-Year 5.61% 5.65%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
Texas 15.0%
------------------------------------
Illinois 14.4%
------------------------------------
Colorado 8.8%
------------------------------------
Nevada 8.0%
------------------------------------
South Carolina 6.6%
------------------------------------
California 5.7%
------------------------------------
New York 4.9%
------------------------------------
Washington 3.6%
------------------------------------
Indiana 3.1%
------------------------------------
Pennsylvania 2.7%
------------------------------------
Florida 2.7%
------------------------------------
Vermont 2.7%
------------------------------------
New Mexico 2.5%
------------------------------------
Massachusetts 2.2%
------------------------------------
Rhode Island 2.1%
------------------------------------
Louisiana 2.1%
------------------------------------
Wisconsin 2.1%
------------------------------------
Other 10.8%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Healthcare 18.6%
------------------------------------
Transportation 17.8%
------------------------------------
Utilities 12.4%
------------------------------------
Tax Obligation/Limited 11.8%
------------------------------------
Tax Obligation/General 9.0%
------------------------------------
U.S. Guaranteed 6.7%
------------------------------------
Consumer Staples 5.3%
------------------------------------
Housing/Multifamily 5.0%
------------------------------------
Other 13.4%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a income tax rate of 28%. When comparing
this Fund to investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.0413 per share.
11
Nuveen Select Tax-Free Income Portfolio 3
NXR
Performance
OVERVIEW As of September 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 46%
AA 27%
A 19%
BBB 8%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.0565
Nov 0.0565
Dec 0.0545
Jan 0.0545
Feb 0.0545
Mar 0.0545
Apr 0.0545
May 0.0545
Jun 0.0535
Jul 0.0535
Aug 0.0535
Sep 0.0535
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
10/1/04 13.19
13.11
13.17
13.22
13.15
13.11
13.16
13.18
13.17
13.19
13.15
13.21
13.3
13.26
13.21
13.17
13.18
13.19
13.16
13.23
13.22
13.31
13.27
13.25
13.24
13
12.88
13
12.92
12.94
13.03
13.18
13.1
13.07
13.11
13.06
13.05
12.99
12.98
13.03
12.93
12.85
12.89
12.78
12.87
12.87
13
12.96
13.05
13.1
12.98
12.9
12.92
12.83
12.75
12.75
12.81
12.76
12.79
12.87
12.85
12.82
12.91
12.92
12.96
13.05
12.99
13.01
12.95
12.96
13
13.03
13.11
13.01
13.12
13.05
12.97
12.98
12.95
12.95
12.93
12.96
13.02
13.16
13.15
13.12
13.11
13.18
13.18
13.21
13.3
13.28
13.23
13.16
13.22
13.25
13.17
13.16
13.06
13.18
13.19
13.17
13.14
13.2
13.18
13.17
13.16
13.19
13.18
13.12
13.14
12.97
12.96
12.96
12.91
12.91
12.84
12.86
12.75
12.79
12.79
12.9
12.83
12.8
12.82
12.83
12.89
12.81
12.9
12.88
12.9
12.95
12.95
13.02
13.07
13.11
13.25
13.07
12.98
13
12.96
12.98
13.03
13.01
13.1
13.13
13.13
13.11
13.09
13.06
13.04
13.02
13
13.04
13.05
13.01
13.05
13.13
13.15
13.18
13.13
13.1
13.18
13.16
13.16
13.17
13.23
13.23
13.31
13.36
13.38
13.32
13.36
13.38
13.38
13.39
13.27
13.31
13.29
13.31
13.28
13.31
13.33
13.36
13.42
13.44
13.41
13.41
13.35
13.35
13.36
13.27
13.33
13.36
13.39
13.43
13.38
13.37
13.38
13.42
13.34
13.36
13.32
13.36
13.36
13.37
13.32
13.34
13.35
13.31
13.31
13.34
13.31
13.4
13.33
13.26
13.25
13.3
13.28
13.34
13.24
13.26
13.34
13.24
13.34
13.29
13.36
13.41
13.32
13.33
13.38
13.34
13.34
13.45
13.47
13.47
13.49
13.65
13.63
13.65
13.61
13.56
13.52
13.42
13.33
13.34
13.28
13.35
13.28
13.36
13.36
13.37
13.39
13.3
9/30/05 13.25
FUND SNAPSHOT
------------------------------------
Share Price $13.25
------------------------------------
Net Asset Value $14.38
------------------------------------
Premium/(Discount) to NAV -7.86%
------------------------------------
Market Yield 4.85%
------------------------------------
Taxable-Equivalent Yield1 6.74%
------------------------------------
Net Assets ($000) $186,477
------------------------------------
Average Effective
Maturity on Securities (Years) 16.66
------------------------------------
Modified Duration 5.16
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/24/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 5.89% 3.40%
------------------------------------
1-Year 6.00% 5.49%
------------------------------------
5-Year 5.77% 5.53%
------------------------------------
10-Year 5.95% 5.81%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
Illinois 19.4%
------------------------------------
Texas 15.7%
------------------------------------
Indiana 6.5%
------------------------------------
Colorado 6.0%
------------------------------------
California 5.4%
------------------------------------
Michigan 5.2%
------------------------------------
Florida 5.1%
------------------------------------
Nevada 5.0%
------------------------------------
North Carolina 4.3%
------------------------------------
Iowa 3.7%
------------------------------------
New York 3.6%
------------------------------------
South Carolina 3.2%
------------------------------------
Pennsylvania 2.5%
------------------------------------
New Mexico 2.2%
------------------------------------
Nebraska 2.0%
------------------------------------
Other 10.2%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Healthcare 23.8%
------------------------------------
Utilities 19.1%
------------------------------------
Tax Obligation/Limited 15.5%
------------------------------------
Transportation 9.5%
------------------------------------
Tax Obligation/General 9.2%
------------------------------------
Education and Civic
Organizations 6.4%
------------------------------------
Consumer Staples 5.6%
------------------------------------
Other 10.9%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a income tax rate of 28%. When comparing
this Fund to investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.0366 per share.
12
Nuveen California Select Tax-Free Income Portfolio
NXC
Performance
OVERVIEW As of September 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 60%
AA 5%
A 25%
BBB 8%
NR 2%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.055
Nov 0.055
Dec 0.055
Jan 0.055
Feb 0.055
Mar 0.055
Apr 0.055
May 0.055
Jun 0.055
Jul 0.055
Aug 0.055
Sep 0.055
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
10/1/04 13.66
13.65
13.56
13.59
13.63
13.69
13.69
13.63
13.67
13.67
13.69
13.62
13.52
13.49
13.48
13.52
13.475
13.53
13.53
13.48
13.46
13.4
13.46
13.47
13.45
13.38
13.19
13.2
13.12
13.2
13.19
13.29
13.33
13.35
13.41
13.27
13.27
13.36
13.4
13.4
13.34
13.2
13.33
13.3
13.26
13.29
13.36
13.38
13.28
13.3
13.23
13.23
13.34
13.21
13.12
13
13.01
12.97
13.05
13
13.12
13.13
13.03
13.09
13.09
13.18
13.19
13.22
13.29
13.36
13.21
13.29
13.31
13.28
13.13
13.19
13.22
13.19
13.3
13.31
13.37
13.33
13.43
13.59
13.6
13.57
13.62
13.7
13.59
13.64
13.6
13.73
13.58
13.66
13.58
13.6
13.58
13.57
13.57
13.69
13.62
13.68
13.6
13.59
13.67
13.73
13.75
13.88
13.83
13.73
13.56
13.53
13.51
13.48
13.4
13.37
13.35
13.38
13.64
13.63
13.35
13.22
13.23
13.33
13.4
13.48
13.37
13.34
13.32
13.3
13.21
13.26
13.22
13.26
13.36
13.45
13.38
13.42
13.5
13.43
13.34
13.35
13.5
13.59
13.6
13.65
13.65
13.42
13.46
13.59
13.57
13.474
13.63
13.53
13.57
13.5
13.48
13.54
13.81
13.77
13.77
13.83
13.8
13.78
13.78
13.76
13.85
13.76
13.88
13.84
13.83
13.83
13.85
13.85
13.83
13.86
13.71
13.89
13.8
13.87
13.9
13.9
13.85
13.9
13.98
13.94
13.88
13.88
13.97
13.98
14
14.18
14.2
14.37
14.33
14.15
14.2
14.29
14.17
14.12
14.12
14.17
14.08
14.07
14.19
14.49
14.49
14.45
14.23
14.09
14.09
14.09
14.06
14.05
14.03
13.95
13.94
13.85
13.77
13.64
13.61
13.56
13.54
13.55
13.55
13.65
13.75
13.75
13.802
13.82
13.82
13.85
13.81
13.86
13.89
13.96
14
13.98
14
14.11
14.12
14.05
14.07
14.18
14.18
14.21
14.24
14.35
14.38
14.35
14.29
14.31
14.27
14.26
9/30/05 14.23
FUND SNAPSHOT
------------------------------------
Share Price $14.23
------------------------------------
Net Asset Value $14.74
------------------------------------
Premium/Discount -3.46%
------------------------------------
Market Yield 4.64%
------------------------------------
Taxable-Equivalent Yield1 7.08%
------------------------------------
Net Assets ($000) $92,219
------------------------------------
Average Effective
Maturity on Securities (Years) 15.44
------------------------------------
Modified Duration 5.93
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/19/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 8.73% 3.65%
------------------------------------
1-Year 10.90% 5.33%
------------------------------------
5-Year 5.32% 5.54%
------------------------------------
10-Year 6.00% 5.75%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 23.4%
------------------------------------
Tax Obligation/Limited 14.2%
------------------------------------
Education and Civic
Organizations 12.9%
------------------------------------
Transportation 12.6%
------------------------------------
Healthcare 9.7%
------------------------------------
Water and Sewer 8.2%
------------------------------------
Utilities 6.8%
------------------------------------
U.S. Guaranteed 5.9%
------------------------------------
Other 6.3%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34.5%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.0468 per share.
13
Nuveen New York Select Tax-Free Income Portfolio
NXN
Performance
OVERVIEW As of September 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 81%
AA 12%
A 2%
BBB 5%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Oct 0.056
Nov 0.056
Dec 0.0535
Jan 0.0535
Feb 0.0535
Mar 0.0535
Apr 0.0535
May 0.0535
Jun 0.051
Jul 0.051
Aug 0.051
Sep 0.051
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
10/1/04 13.61
13.49
13.49
13.66
13.66
13.61
13.72
13.82
13.75
13.82
13.82
13.68
13.74
13.86
13.9
13.86
13.86
13.99
14
13.88
13.9
13.89
13.81
13.89
13.84
13.67
13.64
13.46
13.4
13.41
13.45
13.37
13.44
13.4
13.51
13.46
13.4
13.55
13.48
13.76
13.66
13.65
13.61
13.56
13.7
13.84
13.83
13.83
14.23
14.05
13.66
13.45
13.67
13.67
13.59
13.65
13.57
13.45
13.49
13.42
13.28
13.26
13.26
13.19
13.19
13.16
13.19
13.27
13.26
13.22
13.26
13.21
13.21
13.22
13.27
13.28
13.29
13.33
13.39
13.44
13.44
13.46
13.49
13.51
13.52
13.5
13.5
13.67
13.56
13.48
13.45
13.46
13.54
13.67
13.56
13.6
13.6
13.59
13.6
13.6
13.63
13.7
13.62
13.64
13.64
13.71
13.65
13.74
13.85
13.65
13.62
13.51
13.43
13.49
13.51
13.51
13.51
13.63
13.48
13.5
13.5
13.5
13.6
13.66
13.65
13.75
13.75
13.75
13.75
13.83
13.83
13.83
13.83
13.9
13.82
13.8
13.86
13.9
13.82
13.79
13.79
13.82
13.89
14.01
14.45
14.39
14.39
14.32
14.4
14.23
14.09
14
14.02
14
13.93
13.93
13.9
13.94
13.96
14.02
13.92
13.99
14.06
14.08
14.08
14.13
14.15
14.04
14.22
14.26
14.25
14.51
14.48
14.39
14.32
14.25
14.15
14
13.88
13.88
13.98
13.99
14.02
14.06
14.09
14.15
14.18
14.28
14.25
14.29
14.34
14.35
14.35
14.35
14.1
14.5
14.78
14.45
14.24
14.24
14.16
14.16
14.2
14.19
14.19
14.19
14.1
14.02
14.04
14.04
14.04
14
14.02
13.91
13.9
13.83
13.82
13.83
13.87
13.72
13.7
13.6
13.61
13.62
13.62
13.6
13.63
13.63
13.67
13.64
13.73
13.78
13.75
13.79
13.81
13.78
13.8
13.77
13.77
13.8
13.94
13.87
13.87
13.88
13.87
13.9
13.9
13.9
13.81
13.7
13.53
13.6
13.53
13.53
9/30/05 13.55
FUND SNAPSHOT
------------------------------------
Share Price $13.55
------------------------------------
Net Asset Value $14.40
------------------------------------
Premium/(Discount) to NAV -5.90%
------------------------------------
Market Yield 4.52%
------------------------------------
Taxable-Equivalent Yield1 6.75%
------------------------------------
Net Assets ($000) $56,295
------------------------------------
Average Effective
Maturity on Securities
(Years) 16.42
------------------------------------
Modified Duration 5.66
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/19/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 1.48% 3.02%
------------------------------------
1-Year 5.20% 4.60%
------------------------------------
5-Year 6.01% 5.38%
------------------------------------
10-Year 5.75% 5.50%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 14.0%
------------------------------------
Water and Sewer 12.3%
------------------------------------
Healthcare 11.5%
------------------------------------
U.S. Guaranteed 10.2%
------------------------------------
Long-Term Care 9.4%
------------------------------------
Education and Civic
Organizations 9.1%
------------------------------------
Housing/Single Family 8.3%
------------------------------------
Utilities 7.2%
------------------------------------
Tax Obligation/General 6.6%
------------------------------------
Housing/Multifamily 5.3%
------------------------------------
Other 6.1%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 33%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.0640 per share.
14
Shareholder
MEETING REPORT
The Special Shareholder Meeting was held on July 26, 2005 at The Northern Trust
Bank, 50 S. La Salle St., Chicago, IL.
NXP NXQ NXR NXC NXN
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENT WAS REACHED AS FOLLOWS:
------------------------------------------------------------------------------------------------------------------------------------
For 15,020,161 16,088,026 11,798,664 5,809,822 3,625,503
Against 59,470 134,889 89,692 40,805 23,799
Abstain 171,409 260,785 91,424 17,750 67,079
------------------------------------------------------------------------------------------------------------------------------------
Total 15,251,040 16,483,700 11,979,780 5,868,377 3,716,381
====================================================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner
For 15,137,158 16,155,007 11,891,997 5,851,015 3,687,786
Withhold 113,882 328,693 87,783 17,362 28,595
------------------------------------------------------------------------------------------------------------------------------------
Total 15,251,040 16,483,700 11,979,780 5,868,377 3,716,381
====================================================================================================================================
Lawrence H. Brown
For 15,133,657 16,156,310 11,886,822 5,850,723 3,688,986
Withhold 117,383 327,390 92,958 17,654 27,395
------------------------------------------------------------------------------------------------------------------------------------
Total 15,251,040 16,483,700 11,979,780 5,868,377 3,716,381
====================================================================================================================================
Jack B. Evans
For 15,139,257 16,159,211 11,890,411 5,852,423 3,687,786
Withhold 111,783 324,489 89,369 15,954 28,595
------------------------------------------------------------------------------------------------------------------------------------
Total 15,251,040 16,483,700 11,979,780 5,868,377 3,716,381
====================================================================================================================================
William C. Hunter
For 15,139,257 16,159,211 11,890,411 5,852,423 3,687,786
Withhold 111,783 324,489 89,369 15,954 28,595
------------------------------------------------------------------------------------------------------------------------------------
Total 15,251,040 16,483,700 11,979,780 5,868,377 3,716,381
====================================================================================================================================
David J. Kundert
For 15,139,928 16,158,791 11,892,913 5,852,423 3,687,786
Withhold 111,112 324,909 86,867 15,954 28,595
------------------------------------------------------------------------------------------------------------------------------------
Total 15,251,040 16,483,700 11,979,780 5,868,377 3,716,381
====================================================================================================================================
William J. Schneider
For 15,140,928 16,159,778 11,891,513 5,852,423 3,688,786
Withhold 110,112 323,922 88,267 15,954 27,595
------------------------------------------------------------------------------------------------------------------------------------
Total 15,251,040 16,483,700 11,979,780 5,868,377 3,716,381
====================================================================================================================================
Timothy R. Schwertfeger
For 15,140,188 16,160,997 11,892,756 5,852,423 3,688,986
Withhold 110,852 322,703 87,024 15,954 27,395
------------------------------------------------------------------------------------------------------------------------------------
Total 15,251,040 16,483,700 11,979,780 5,868,377 3,716,381
====================================================================================================================================
Judith M. Stockdale
For 15,141,128 16,160,913 11,891,613 5,849,615 3,687,986
Withhold 109,912 322,787 88,167 18,762 28,395
------------------------------------------------------------------------------------------------------------------------------------
Total 15,251,040 16,483,700 11,979,780 5,868,377 3,716,381
====================================================================================================================================
Eugene S. Sunshine
For 15,140,257 16,161,391 11,890,471 5,852,423 3,689,898
Withhold 110,783 322,309 89,309 15,954 26,483
------------------------------------------------------------------------------------------------------------------------------------
Total 15,251,040 16,483,700 11,979,780 5,868,377 3,716,381
====================================================================================================================================
15
>
Nuveen Select Tax-Free Income Portfolio (NXP)
Portfolio of
INVESTMENTS September 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.1%
$ 2,475 Alaska Municipal Bond Bank Authority, General Obligation 12/13 at 100.00 AAA $ 2,703,987
Bonds, Series 2003E, 5.250%, 12/01/23 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 4.4%
2,000 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 1,495,720
Subordinate Lien Revenue Bonds, Series 2004A,
0.000%, 10/01/25 - AMBAC Insured
3,325 California Department of Water Resources, Power Supply 5/12 at 101.00 A2 3,796,884
Revenue Bonds, Series 2002A, 6.000%, 5/01/14
200 Contra Costa County, California, Certificates of Participation 11/07 at 102.00 AAA 212,490
Refunding, Merrithew Memorial Hospital Replacement,
Series 1997, 5.375%, 11/01/17 - MBIA Insured
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 3,457,650
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
1,130 Los Angeles Department of Water and Power, California, 7/11 at 100.00 AAA 1,166,171
Waterworks Revenue Refunding Bonds, Series 2001A,
5.125%, 7/01/41 - FGIC Insured
365 Los Angeles, California, Parking System Revenue Bonds, 5/09 at 101.00 AAA 387,331
Series 1999A, 5.250%, 5/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 13.3%
Colorado Health Facilities Authority, Revenue Bonds, Catholic
Health Initiatives, Series 2002A:
1,700 5.500%, 3/01/22 3/12 at 100.00 AA*** 1,880,863
1,300 5.500%, 3/01/22 3/12 at 100.00 AA 1,409,772
1,000 Colorado Water Resources and Power Development Authority, 11/10 at 100.00 AAA 1,103,390
Small Water Resources Revenue Bonds, Series 2000A,
5.800%, 11/01/20 - FGIC Insured
5,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 5,433,050
Refunding Bonds, Series 2001A, 5.625%, 11/15/17
(Alternative Minimum Tax) - FGIC Insured
10,750 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 12,546,863
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
640 Denver City and County, Colorado, Airport System Revenue 11/06 at 101.00 AAA 660,890
Bonds, Series 1996A, 5.500%, 11/15/25 - MBIA Insured
230 Denver City and County, Colorado, Airport System Revenue 11/06 at 101.00 AAA 237,507
Bonds, Series 1996D, 5.500%, 11/15/25 - MBIA Insured
Denver Convention Center Hotel Authority, Colorado, Senior
Revenue Bonds, Convention Center Hotel, Series 2003A:
1,000 5.000%, 12/01/22 - XLCA Insured 12/13 at 100.00 AAA 1,045,280
3,000 5.000%, 12/01/23 - XLCA Insured 12/13 at 100.00 AAA 3,129,540
5,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 31.42 AAA 1,317,250
Bonds, Series 2000B, 0.000%, 9/01/28 (Pre-refunded
to 9/01/10) - MBIA Insured
3,160 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA 3,492,748
Revenue Bonds, Senior Series 2001A, 5.500%, 6/15/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.6%
1,000 District of Columbia, Hospital Revenue Refunding Bonds, 8/06 at 102.00 AAA 1,043,580
Medlantic Healthcare Group, Series 1996A, 5.750%, 8/15/16 -
MBIA Insured
265 District of Columbia, Revenue Bonds, Catholic University of 10/09 at 101.00 AAA 287,446
America, Series 1999, 5.625%, 10/01/29 - AMBAC Insured
16
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 7.1%
$ 450 Escambia County, Florida, Pollution Control Revenue Bonds, 12/05 at 100.00 BBB $ 451,035
Champion International Corporation, Series 1993,
5.875%, 6/01/22 (Alternative Minimum Tax)
10,000 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 10,655,300
Refunding Bonds, Issue 2, Series 2002-17, 5.000%, 10/01/17
6,100 JEA, Florida, St. John's River Power Park System Revenue 10/05 at 100.00 Aa2 6,137,515
Refunding Bonds, Issue Two, Series Nine, 5.250%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.6%
1,330 Hawaii, Certificates of Participation, Kapolei State Office 11/08 at 101.00 AAA 1,404,400
Building, Series 1998A, 5.000%, 5/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 13.9%
Chicago Heights, Illinois, General Obligation Corporate Purpose
Bonds, Series 1993:
3,820 5.650%, 12/01/15 - FGIC Insured 12/08 at 100.00 AAA 4,087,018
2,600 5.650%, 12/01/17 - FGIC Insured 12/08 at 100.00 AAA 2,778,360
2,500 Chicago, Illinois, Special Facility Revenue Refunding Bonds, No Opt. Call N/R 300,200
O'Hare International Airport, United Air Lines Inc. Project,
Series 2001C, 6.300%, 5/01/16 #
1,000 DuPage County Community School District 200, Wheaton, 11/13 at 100.00 Aaa 1,089,780
Illinois, General Obligation Bonds, Series 2003B,
5.250%, 11/01/20 - FSA Insured
1,000 Illinois Educational Facilities Authority, Revenue Bonds, 5/08 at 101.00 A 1,034,470
Midwestern University, Series 1998B, 5.500%, 5/15/18 -
ACA Insured
4,000 Illinois Finance Authority, Revenue Bonds, Northwestern 8/14 at 100.00 AA+ 4,268,680
Memorial Hospital, Series 2004A, 5.500%, 8/15/43
1,530 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call N/R*** 1,608,520
Evangelical Hospitals Corporation, Series 1992B,
6.500%, 4/15/09
300 Illinois Health Facilities Authority, Revenue Bonds, 11/05 at 100.00 AAA 300,618
Rush-Presbyterian St. Luke's Medical Center Obligated
Group, Series 1993, 5.250%, 11/15/20 - MBIA Insured
1,320 Illinois Health Facilities Authority, Revenue Bonds, Decatur 10/11 at 100.00 A 1,403,701
Memorial Hospital, Series 2001, 5.600%, 10/01/16
2,700 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/12 at 100.00 A- 2,953,935
Forest Hospital, Series 2002A, 6.000%, 7/01/17
2,275 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/13 at 100.00 A2 2,543,473
Elmhurst Memorial Healthcare, Series 2002, 6.250%, 1/01/17
600 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Baa2 643,026
Revenue Bonds, Educational Advancement Foundation Fund,
University Center Project, Series 2002, 6.000%, 5/01/22
3,125 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 1,879,500
Bonds, McCormick Place Expansion Project, Series 1992A,
0.000%, 6/15/17 - FGIC Insured
5,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 5,270,850
Refunding Bonds, McCormick Place Expansion Project,
Series 2002B, 5.000%, 6/15/21 - MBIA Insured
1,300 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 AAA 1,396,265
5.250%, 12/01/34 - FGIC Insured
Yorkville, Illinois, General Obligation Debt Certificates, Series 2003:
1,000 5.000%, 12/15/19 - RAAI Insured 12/11 at 100.00 AA 1,031,130
1,000 5.000%, 12/15/20 - RAAI Insured 12/11 at 100.00 AA 1,029,480
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 8.3%
5,000 Duneland School Building Corporation, Indiana, First Mortgage 2/09 at 101.00 AAA 5,302,100
Refunding Bonds, Series 1999, 5.125%, 2/01/18 -
MBIA Insured
1,000 Franklin Community Multi-School Building Corporation, 7/14 at 100.00 AAA 1,053,350
Marion County, Indiana, First Mortgage Revenue Bonds,
Series 2004, 5.000%, 7/15/22 - FGIC Insured
2,000 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,388,800
Refunding Bonds, Columbus Regional Hospital, Series 1993,
7.000%, 8/15/15 - FSA Insured
9,855 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 10,559,041
Waterworks Project, Series 2002A, 5.125%, 7/01/21 -
MBIA Insured
17
Nuveen Select Tax-Free Income Portfolio (NXP) (continued)
Portfolio of INVESTMENTS September 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA (continued)
$ 750 West Clark 2000 School Building Corporation, Clark County, 1/15 at 100.00 AAA $ 791,880
Indiana, First Mortgage Bonds, Series 2005,
5.000%, 7/15/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.3%
750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas 6/14 at 100.00 AAA 803,588
Gas and Electric Company, Series 2004, 5.300%, 6/01/31 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.5%
1,100 Jefferson County, Kentucky, Health System Revenue Bonds, 10/08 at 101.00 AAA 1,145,881
Alliant Health System Inc., Series 1998, 5.125%, 10/01/18 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.4%
1,000 Tobacco Settlement Financing Corporation, Louisiana, 5/11 at 101.00 BBB 1,060,290
Tobacco Settlement Asset-Backed Bonds, Series 2001B,
5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.2%
500 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA- 556,925
Revenue Bonds, Partners HealthCare System Inc.,
Series 2001C, 6.000%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.6%
2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA- 3,042,071
Refunding Bonds, Trinity Health Credit Group, Series 2002C,
5.375%, 12/01/30
1,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BB- 946,240
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.125%, 8/15/18
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.2%
375 Minnesota Housing Finance Agency, Single Family Mortgage 7/08 at 101.00 AA+ 386,985
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 3,825,540
Bonds, Weyerhauser Company Project, Series 1992,
6.875%, 4/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 6.7%
2,500 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AAA 2,629,825
Improvement Revenue Bonds, Series 2003,
5.000%, 7/01/23 - AMBAC Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000:
2,360 0.000%, 1/01/21 - AMBAC Insured No Opt. Call AAA 1,157,084
3,500 0.000%, 1/01/22 - AMBAC Insured No Opt. Call AAA 1,627,815
6,025 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 6,336,734
4,070 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 4,476,552
Series 2002, 5.500%, 6/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.3%
635 New Hampshire Housing Finance Agency, Single Family 5/11 at 100.00 Aa2 647,675
Mortgage Acquisition Bonds, Series 2001A,
5.600%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.9%
2,500 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa3 2,578,500
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/23
1,835 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 1,918,970
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.7%
4,000 University of New Mexico, FHA-Insured Mortgage Hospital 7/14 at 100.00 AAA 4,024,080
Revenue Bonds, Series 2004, 4.625%, 7/01/25 - FSA Insured
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 1.3%
$ 450 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA $ 473,270
General Revenue Bonds, Series 1998A, 5.125%, 12/01/22 -
FSA Insured
1,000 Dormitory Authority of the State of New York, FHA-Insured 2/14 at 100.00 AAA 1,047,000
Mortgage Revenue Bonds, Kaleida Health, Series 2004,
5.050%, 2/15/25
1,600 Dormitory Authority of the State of New York, Revenue 7/10 at 101.00 Ba1 1,687,568
Bonds, Mount Sinai NYU Health Obligated Group,
Series 2000A, 6.500%, 7/01/17
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.4%
500 Appalachian State University, North Carolina, Utilities System 5/08 at 102.00 AAA 525,230
Revenue Refunding Bonds, Series 1998, 5.000%, 5/15/24 -
MBIA Insured
2,195 North Carolina Eastern Municipal Power Agency, Power System 1/06 at 100.00 BBB 2,218,904
Revenue Refunding Bonds, Series 1993B, 5.500%, 1/01/21
500 Raleigh Durham Airport Authority, North Carolina, Airport 5/11 at 101.00 Aaa 541,030
Revenue Bonds, Series 2001A, 5.250%, 1/01/17 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.6%
300 Lebanon, Ohio, Electric System Mortgage Revenue Bonds, 12/10 at 101.00 AAA 330,414
Series 2001, 5.500%, 12/01/17 - AMBAC Insured
1,000 Ohio Housing Finance Agency, GNMA Mortgage-Backed 9/07 at 102.00 Aaa 1,040,550
Securities Program Residential Mortgage Remarketed
Revenue Bonds, Series 1997A-1, 6.050%, 9/01/17
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.7%
4,000 Oklahoma Development Finance Authority, Revenue Bonds, 2/14 at 100.00 AA 4,102,960
St. John Health System, Series 2004, 5.000%, 2/15/24
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.8%
520 Pennsylvania, General Obligation Bonds, Second 9/11 at 101.00 AAA 552,734
Series 2001, 5.000%, 9/15/20 - FSA Insured
500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 BBB+ 522,875
Bonds, Widener University, Series 2003, 5.250%, 7/15/24
700 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/14 at 100.00 AAA 775,642
Series 2004A, 5.500%, 12/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 7.3%
10,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA-*** 11,522,400
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/19
(Pre-refunded to 12/01/12)
1,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 1,663,365
Hospital Revenue Refunding and Improvement Bonds,
Series 2003, 6.000%, 11/01/18
2,500 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- 2,643,925
Economic Development Revenue Bonds, Bon Secours
Health System Inc., Series 2002A, 5.625%, 11/15/30
1,720 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 1,843,857
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 8.6%
5,000 Brazos River Harbor Navigation District, Brazoria County, 5/12 at 101.00 A- 5,421,250
Texas, Environmental Facilities Revenue Bonds, Dow
Chemical Company Project, Series 2002A-6, 6.250%, 5/15/33
(Alternative Minimum Tax) (Mandatory put 5/15/17)
360 Dallas-Fort Worth International Airport Public Facility 1/09 at 100.00 AAA 380,574
Corporation, Texas, Airport Hotel Revenue Bonds, Series 2001,
5.500%, 1/15/20 - FSA Insured
6,150 Dallas Independent School District, Dallas County, Texas, 2/12 at 100.00 AAA 6,614,325
General Obligation Refunding Bonds, Series 2002,
5.250%, 2/15/20
2,300 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 2,377,418
Texas, Thermal Utility Revenue Bonds, TECO Project,
Series 2003, 5.000%, 11/15/30 - MBIA Insured
19
Nuveen Select Tax-Free Income Portfolio (NXP) (continued)
Portfolio of INVESTMENTS September 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 3,500 Irving Independent School District, Dallas County, Texas, 2/12 at 100.00 AAA $ 3,600,765
General Obligation Refunding Bonds, Series 2002A,
5.000%, 2/15/31
San Antonio, Texas, Water System Revenue Refunding Bonds,
Series 1992:
95 6.000%, 5/15/16 (Pre-refunded to 5/15/07) - MBIA Insured 5/07 at 100.00 AAA 99,499
465 6.000%, 5/15/16 (Pre-refunded to 5/15/12) - MBIA Insured 5/12 at 100.00 AAA 531,560
1,750 Texas, General Obligation Bonds, Water Financial Assistance 8/13 at 100.00 Aa1 1,790,460
Program, Series 2003A, 5.125%, 8/01/42 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.3%
775 Utah State Building Ownership Authority, Lease Revenue 11/11 at 100.00 AA+ 834,543
Bonds, State Facilities Master Lease Program, Series 2001B,
5.250%, 5/15/24
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.4%
250 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 275,323
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.500%, 7/01/17 - MBIA Insured
5,700 Snohomish County Public Utility District 1, Washington, 1/06 at 100.00 Aaa 6,410,562
Generation System Revenue Bonds, Series 1989,
6.750%, 1/01/12
2,480 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 2,750,146
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
3,000 Washington State Healthcare Facilities Authority, Revenue 12/07 at 101.00 AAA 3,132,960
Bonds, Catholic Health Initiatives, Series 1997A,
5.125%, 12/01/17 - MBIA Insured
9,750 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 AAA 10,271,723
Bonds, Sisters of Providence Health System, Series 2001A,
5.125%, 10/01/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.9%
1,885 Marshall County, West Virginia, Special Obligation Refunding No Opt. Call AAA 2,059,363
Bonds, Series 1992, 6.500%, 5/15/10
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.6%
240 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB 256,747
Tobacco Settlement Asset-Backed Bonds, Series 2002,
6.125%, 6/01/27
2,500 Wisconsin, General Obligation Refunding Bonds, 11/13 at 100.00 AA- 2,614,025
Series 2003-3, 5.000%, 11/01/26
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A 1,076,277
Bonds, Wheaton Franciscan Services Inc., Series 2003A,
5.500%, 8/15/17
------------------------------------------------------------------------------------------------------------------------------------
$ 232,930 Total Long-Term Investments (cost $224,339,961) - 98.6% 238,324,838
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 3,403,101
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 241,727,939
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
# On December 9, 2002, UALCorporation, the holding
company of United Air Lines, Inc. filed for federal
bankruptcy protection. The Adviser determined that it
was likely United would not remain current on their
interest payment obligations with respect to these
bonds and thus has stopped accruing interest.
N/R Investment is not rated.
See accompanying notes to financial statements.
20
Nuveen Select Tax-Free Income Portfolio 2 (NXQ)
Portfolio of
INVESTMENTS September 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.6%
$ 1,000 Fort Smith, Arkansas, Water and Sewer Revenue Refunding 10/11 at 100.00 AAA $ 1,070,070
and Construction Bonds, Series 2002A, 5.000%, 10/01/19 -
FSA Insured
1,000 Sebastian County Health Facilities Board, Arkansas, Hospital 11/11 at 101.00 Baa1 1,024,000
Revenue Improvement Bonds, Sparks Regional Medical
Center, Series 2001A, 5.250%, 11/01/21
2,000 University of Arkansas, Fayetteville, Various Facilities 12/12 at 100.00 Aaa 2,072,360
Revenue Bonds, Series 2002, 5.000%, 12/01/32 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 5.6%
1,000 Alameda Corridor Transportation Authority, California, 10/17 at 100.00 AAA 747,860
Subordinate Lien Revenue Bonds, Series 2004A,
0.000%, 10/01/25 - AMBAC Insured
California, General Obligation Bonds, Series 1997:
2,105 5.000%, 10/01/18 (Pre-refunded to 10/01/07) - AMBAC Insured 10/07 at 101.00 AAA 2,207,114
395 5.000%, 10/01/18 - AMBAC Insured 10/07 at 101.00 AAA 412,416
3,325 California Department of Water Resources, Power Supply 5/12 at 101.00 A2 3,796,884
Revenue Bonds, Series 2002A, 6.000%, 5/01/14
2,000 California State Public Works Board, Lease Revenue No Opt. Call Aa2 2,233,200
Refunding Bonds, Various University of California Projects,
Series 1993A, 5.500%, 6/01/14
500 California State Public Works Board, Lease Revenue Refunding 12/08 at 101.00 A- 519,555
Bonds, Community Colleges Projects, Series 1998A,
5.250%, 12/01/16
500 Contra Costa Water District, California, Water Revenue 10/07 at 100.00 AA 517,355
Refunding Bonds, Series 1997H, 5.000%, 10/01/17
500 Contra Costa County, California, Certificates of Participation 11/07 at 102.00 AAA 531,225
Refunding, Merrithew Memorial Hospital Replacement,
Series 1997, 5.375%, 11/01/17 - MBIA Insured
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 3,457,650
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 8.6%
Colorado Health Facilities Authority, Revenue Bonds, Catholic
Health Initiatives, Series 2002A:
1,700 5.500%, 3/01/22 3/12 at 100.00 AA*** 1,880,863
1,300 5.500%, 3/01/22 3/12 at 100.00 AA 1,409,772
1,555 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 1,706,628
Refunding Bonds, Series 2001, 5.500%, 11/15/16 -
FGIC Insured
5,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 5,433,050
Refunding Bonds, Series 2001A, 5.625%, 11/15/17
(Alternative Minimum Tax) - FGIC Insured
3,185 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 3,717,373
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
3,000 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 AAA 3,129,540
Revenue Bonds, Convention Center Hotel, Series 2003A,
5.000%, 12/01/23 - XLCA Insured
E-470 Public Highway Authority, Colorado, Senior Revenue
Bonds, Series 2000B:
5,000 0.000%, 9/01/24 - MBIA Insured No Opt. Call AAA 2,058,550
5,000 0.000%, 9/01/28 (Pre-refunded to 9/01/10) - MBIA Insured 9/10 at 31.42 AAA 1,317,250
250 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA 265,393
Revenue Bonds, Senior Series 2001A, 5.250%, 6/15/41 -
FSA Insured
1,100 University of Colorado Hospital Authority, Revenue Bonds, 11/11 at 100.00 Baa1 1,152,756
Series 2001A, 5.600%, 11/15/31
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.4%
500 District of Columbia, Hospital Revenue Refunding Bonds, 8/06 at 102.00 AAA 521,790
Medlantic Healthcare Group, Series 1996A,
5.750%, 8/15/16 - MBIA Insured
21
Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued)
Portfolio of INVESTMENTS September 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA (continued)
$ 500 Washington Convention Center Authority, District of Columbia, 10/08 at 101.00 AAA $ 523,520
Senior Lien Dedicated Tax Revenue Bonds, Series 1998,
5.000%, 10/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.6%
6,060 JEA, Florida, St. John's River Power Park System Revenue 10/05 at 100.00 Aa2 6,097,269
Refunding Bonds, Issue Two, Series Nine, 5.250%, 10/01/21
625 Miami-Dade County Expressway Authority, Florida, Toll System 7/11 at 101.00 Aaa 653,969
Revenue Refunding Bonds, Series 2001, 5.125%, 7/01/29 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.5%
1,100 Hawaii, Certificates of Participation, Kapolei State Office 11/08 at 101.00 AAA 1,161,534
Building, Series 1998A, 5.000%, 5/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.3%
4,425 Chicago Metropolitan Housing Development Corporation, 1/06 at 100.00 AA 4,431,461
Illinois, FHA-Insured Section 8 Assisted Housing Development
Revenue Refunding Bonds, Series 1992, 6.800%, 7/01/17
2,400 Chicago, Illinois, Special Facility Revenue Refunding Bonds, No Opt. Call N/R 288,192
O'Hare International Airport, United Air Lines Inc. Project,
Series 2001C, 6.300%, 5/01/16 #
250 Illinois Development Finance Authority, Economic 8/08 at 100.00 Baa2 258,463
Development Revenue Bonds, Latin School of Chicago,
Series 1998, 5.200%, 8/01/11
2,185 Illinois Finance Authority, Revenue Bonds, YMCA of 9/15 at 100.00 AA 2,219,086
Southwest Illinois, Series 2005, 5.000%, 9/01/31 -
RAAI Insured
3,000 Illinois Health Facilities Authority, Revenue Bonds, 11/05 at 100.00 AAA 3,006,180
Rush-Presbyterian St. Luke's Medical Center Obligated
Group, Series 1993, 5.250%, 11/15/20 - MBIA Insured
1,055 Illinois Health Facilities Authority, Revenue Bonds, Loyola 7/11 at 100.00 Baa1 1,117,931
University Health System, Series 2001A, 6.125%, 7/01/31
2,255 Illinois Health Facilities Authority, Revenue Bonds, 7/12 at 100.00 A- 2,473,487
Lake Forest Hospital, Series 2002A, 6.250%, 7/01/22
600 Illinois Educational Facilities Authority, Student Housing 5/12 at 101.00 Baa2 643,026
Revenue Bonds, Educational Advancement Foundation
Fund, University Center Project, Series 2002,
6.000%, 5/01/22
5,700 Illinois, Sales Tax Revenue Bonds, First Series 2002, 6/13 at 100.00 AAA 5,989,617
5.000%, 6/15/22
45 Metropolitan Pier and Exposition Authority, Illinois, Revenue 12/05 at 100.00 A1 45,094
Bonds, McCormick Place Expansion Project, Series 1992A,
6.500%, 6/15/22
7,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 7,379,190
Refunding Bonds, McCormick Place Expansion Project,
Series 2002B, 5.000%, 6/15/21 - MBIA Insured
5,045 Sauk Village, Illinois, General Obligation Alternate Revenue 12/12 at 100.00 AA 5,185,352
Source Bonds, Tax Increment, Series 2002A, 5.000%, 6/01/22 -
RAAI Insured
Sauk Village, Illinois, General Obligation Alternate Revenue
Source Bonds, Tax Increment, Series 2002B:
1,060 0.000%, 12/01/17 - RAAI Insured No Opt. Call AA 580,477
1,135 0.000%, 12/01/18 - RAAI Insured No Opt. Call AA 589,258
1,100 Schaumburg, Illinois, General Obligation Bonds, 12/14 at 100.00 AAA 1,181,455
Series 2004B, 5.250%, 12/01/34 - FGIC Insured
1,000 Yorkville, Illinois, General Obligation Debt Certificates, 12/11 at 100.00 AA 1,026,750
Series 2003, 5.000%, 12/15/21 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.1%
1,000 Franklin Community Multi-School Building Corporation, 7/14 at 100.00 AAA 1,053,350
Marion County, Indiana, First Mortgage Revenue Bonds,
Series 2004, 5.000%, 7/15/22 - FGIC Insured
4,380 Indiana Municipal Power Agency, Power Supply System 1/12 at 100.00 AAA 4,672,409
Revenue Bonds, Series 2002A, 5.125%, 1/01/21 -
AMBAC Insured
1,280 Indiana Housing Finance Authority, Single Family Mortgage 7/11 at 100.00 Aaa 1,320,563
Revenue Bonds, Series 2002C-2, 5.250%, 7/01/23
(Alternative Minimum Tax)
750 West Clark 2000 School Building Corporation, Clark 1/15 at 100.00 AAA 791,880
County, Indiana, First Mortgage Bonds, Series 2005,
5.000%, 7/15/22 - MBIA Insured
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.8%
Iowa Tobacco Settlement Authority, Tobacco Settlement
Asset-Backed Revenue Bonds, Series 2001B:
$ 1,000 5.300%, 6/01/25 6/11 at 101.00 BBB $ 1,020,460
3,500 5.600%, 6/01/35 6/11 at 101.00 BBB 3,602,585
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.1%
2,125 Louisiana Public Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 2,246,975
Baton Rouge General Hospital, Series 2004,
5.250%, 7/01/24 - MBIA Insured
3,000 Louisiana Public Facilities Authority, Revenue Bonds, 7/12 at 100.00 AAA 3,113,070
Tulane University, Series 2002A, 5.125%, 7/01/27 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.2%
3,000 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 3,181,890
Revenue Bonds, Berkshire Health System, Series 2001E,
6.250%, 10/01/31
2,090 Massachusetts Water Resources Authority, General Revenue No Opt. Call AAA 2,314,696
Bonds, Series 1993C, 5.250%, 12/01/15 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.0%
2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA- 3,042,071
Refunding Bonds, Trinity Health Credit Group, Series 2002C,
5.375%, 12/01/30
2,000 Plymouth-Canton Community School District, Wayne and 5/09 at 100.00 AA 2,076,600
Washtenaw Counties, Michigan, Unlimited Tax General
Obligation School Building and Site Bonds, Series 1999,
4.750%, 5/01/18
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 7.1%
500 Clark County, Nevada, Limited Tax General Obligation 7/06 at 101.00 AAA 513,625
Las Vegas Convention and Visitors Authority Bonds,
Series 1996, 5.500%, 7/01/17 - MBIA Insured
1,500 Clark County, Nevada, General Obligation Bank Bonds, 6/11 at 100.00 AAA 1,625,880
Southern Nevada Water Authority Loan, Series 2001,
5.300%, 6/01/19 - FGIC Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000:
4,595 0.000%, 1/01/22 - AMBAC Insured No Opt. Call AAA 2,137,089
13,250 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 13,935,555
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.0%
2,500 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa3 2,578,500
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/23
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.5%
University of New Mexico, FHA-Insured Mortgage Hospital
Revenue Bonds, Series 2004:
555 4.625%, 1/01/25 - FSA Insured 7/14 at 100.00 AAA 558,341
660 4.625%, 7/01/25 - FSA Insured 7/14 at 100.00 AAA 663,973
2,000 4.750%, 7/01/27 - FSA Insured 7/14 at 100.00 AAA 2,027,040
3,000 4.750%, 1/01/28 - FSA Insured 7/14 at 100.00 AAA 3,034,080
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 4.8%
2,000 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 2,094,240
Water and Sewerage System Revenue Bonds, Fiscal
Series 2005B, 5.000%, 6/15/36 - FSA Insured
2,700 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 Ba1 2,847,771
Mount Sinai NYU Health Obligated Group, Series 2000A,
6.500%, 7/01/17
3,000 New York State Tobacco Settlement Financing Corporation, 6/11 at 100.00 AA- 3,284,160
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/16
3,810 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 4,158,272
Center Bonds, Series 1990E, 7.250%, 1/01/10
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.6%
1,500 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 AA 1,540,605
Healthcare System Revenue Bonds, Carolinas Healthcare
System, Series 2001A, 5.000%, 1/15/31
23
Nuveen Select Tax-Free Income Portfolio 2 (NXQ) (continued)
Portfolio of INVESTMENTS September 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.7%
$ 1,020 Carlisle Area School District, Cumberland County, Pennsylvania, 9/09 at 100.00 Aaa $ 1,067,552
General Obligation Bonds, Series 2004A,
5.000%, 9/01/20 - FGIC Insured
1,000 Dauphin County General Authority, Pennsylvania, Health System 2/09 at 101.00 AAA 1,054,430
Revenue Bonds, Pinnacle Health System Project,
Series 1999, 5.125%, 8/15/17 - MBIA Insured
1,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,085,590
Pennsylvania, Airport Revenue Bonds, Philadelphia Airport
System Project, Series 2001A, 5.500%, 7/01/17 (Alternative
Minimum Tax) - FGIC Insured
3,250 Philadelphia School District, Pennsylvania, General Obligation 2/12 at 100.00 AAA 3,614,000
Bonds, Series 2002A, 5.500%, 2/01/31 (Pre-refunded to
2/01/12) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.2%
3,000 Puerto Rico Housing Finance Authority, Capital Fund Program 12/13 at 100.00 AA 3,152,700
Revenue Bonds, Series 2003, 5.000%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.1%
5,000 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 5,384,100
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 6.5%
620 Florence, South Carolina, Water and Sewerage Revenue 3/10 at 101.00 AAA 681,027
Bonds, Series 2000, 5.750%, 3/01/20 - AMBAC Insured
4,000 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA-*** 4,608,960
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/19
(Pre-refunded to 12/01/12)
2,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 2,772,275
Hospital Revenue Refunding and Improvement Bonds,
Series 2003, 6.000%, 11/01/18
8,350 South Carolina Public Service Authority, Revenue Refunding 1/06 at 102.00 AAA 8,572,862
Bonds, Santee Cooper Electric System, Series 1996A,
5.750%, 1/01/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.4%
1,000 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 A+ 1,040,330
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.250%, 11/01/34
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 14.8%
4,000 Brazos River Harbor Navigation District, Brazoria County, 5/12 at 101.00 A- 4,337,000
Texas, Environmental Facilities Revenue Bonds, Dow
Chemical Company Project, Series 2002A-6, 6.250%, 5/15/33
(Alternative Minimum Tax) (Mandatory put 5/15/17)
1,500 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 1,537,305
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/45 - FGIC Insured
1,270 Cleveland Housing Corporation, Texas, FHA-Insured Section 8 1/06 at 100.00 AAA 1,272,121
Assisted Mortgage Revenue Refunding Bonds, Series 1992C,
7.375%, 7/01/24 - MBIA Insured
4,550 Harris County-Houston Sports Authority, Texas, Junior Lien 11/31 at 53.78 AAA 645,235
Revenue Bonds, Series 2001H, 0.000%, 11/15/41 -
MBIA Insured
2,500 Harris County Health Facilities Development Corporation, 10/05 at 102.00 AAA 2,799,450
Texas, Hospital Revenue Bonds, Texas Children's Hospital,
Series 1995, 5.500%, 10/01/16 - MBIA Insured
3,000 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 3,100,980
Texas, Thermal Utility Revenue Bonds, TECO Project,
Series 2003, 5.000%, 11/15/30 - MBIA Insured
2,000 Houston, Texas, Subordinate Lien Airport System Revenue 7/12 at 100.00 AAA 2,176,340
Bonds, Series 2002A, 5.625%, 7/01/20 (Alternative
Minimum Tax) - FSA Insured
3,125 Katy Independent School District, Harris, Fort Bend and Waller 2/12 at 100.00 AAA 3,213,219
Counties, Texas, General Obligation Bonds, Series 2002A,
5.000%, 2/15/32
Killeen Independent School District, Bell County, Texas,
General Obligation Bonds, Series 1998:
780 5.000%, 2/15/14 (Pre-refunded to 2/15/08) 2/08 at 100.00 AAA 814,562
220 5.000%, 2/15/14 2/08 at 100.00 AAA 228,494
1,000 Lewisville Independent School District, Denton County, Texas, 8/11 at 100.00 AAA 1,049,400
General Obligation Bonds, Series 2004, 5.000%, 8/15/23
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 4,750 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA $ 5,094,470
System Revenue Refunding Bonds, Series 2002A,
5.500%, 10/01/17 - RAAI Insured
1,000 Texas, General Obligation Bonds, Water Financial Assistance 8/13 at 100.00 Aa1 1,023,120
Program, Series 2003A, 5.125%, 8/01/42 (Alternative
Minimum Tax)
8,900 Texas Turnpike Authority, Dallas North Tollway System 1/06 at 102.00 AAA 9,117,427
Revenue Bonds, President George Bush Turnpike,
Series 1995, 5.250%, 1/01/23 - FGIC Insured
1,250 Texas Water Development Board, Senior Lien State Revolving 1/07 at 100.00 AAA 1,278,300
Fund Revenue Bonds, Series 1996B, 5.125%, 7/15/18
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.6%
1,435 Salt Lake City and Sandy Metropolitan Water District, Utah, 7/14 at 100.00 Aaa 1,526,381
Water Revenue Bonds, Series 2004, 5.000%, 7/01/21 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 2.6%
3,000 Vermont Housing Finance Agency, Multifamily Housing Bonds, 2/09 at 100.00 AAA 3,113,640
Series 1999C, 5.800%, 8/15/16 - FSA Insured
3,600 Vermont Industrial Development Authority, Revenue Refunding 3/06 at 100.00 A 3,606,300
Bonds, Stanley Works Inc., Series 1992, 6.750%, 9/01/10
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.5%
250 Norfolk, Virginia, Water Revenue Bonds, Series 1995, 11/05 at 102.00 AAA 255,600
5.750%, 11/01/13 - MBIA Insured
1,000 Virginia Transportation Board, Transportation Revenue 5/07 at 101.00 AA+ 1,038,150
Refunding Bonds, U.S. Route 58 Corridor Development
Program, Series 1997C, 5.125%, 5/15/19
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.6%
2,000 Washington State Healthcare Facilities Authority, Revenue 12/07 at 101.00 AAA 2,088,640
Bonds, Catholic Health Initiatives, Series 1997A,
5.125%, 12/01/17 - MBIA Insured
6,715 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 AAA 7,074,320
Bonds, Sisters of Providence Health System, Series 2001A,
5.125%, 10/01/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.0%
4,000 Wisconsin Housing and Economic Development Authority, 3/12 at 100.00 AA 4,111,760
Home Ownership Revenue Bonds, Series 2002G,
4.850%, 9/01/17
1,000 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 A 1,072,826
Revenue Bonds, Wheaton Franciscan Services Inc.,
Series 2003A, 5.500%, 8/15/18
------------------------------------------------------------------------------------------------------------------------------------
$ 253,635 Total Long-Term Investments (cost $240,110,465) - 97.8% 250,078,511
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.8%
2,000 Clark County School District, Nevada, General Obligation A-1+ 2,000,000
Bonds, Variable Rate Demand Obligations, Series 2001B,
2.900%, 6/15/21 - FSA Insured +
------------------------------------------------------------------------------------------------------------------------------------
$ 2,000 Total Short-Term Investments (cost $2,000,000) 2,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $242,110,465) - 98.6% 252,078,511
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 3,570,890
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 255,649,401
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
# On December 9, 2002, UAL Corporation, the holding
company of United Air Lines, Inc. filed for federal
bankruptcy protection. The Adviser determined that it
was likely United would not remain current on their
interest payment obligations with respect to these
bonds and thus has stopped accruing interest.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term investment. The rate disclosed is that in
effect at the end of the reporting period. This rate
changes periodically based on market conditions or a
specified market index.
See accompanying notes to financial statements.
25
Nuveen Select Tax-Free Income Portfolio 3 (NXR)
Portfolio of
INVESTMENTS September 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.3%
$ 500 Marshall County Healthcare Authority, Alabama, Revenue 1/12 at 101.00 A- $ 548,825
Bonds, Series 2002A, 6.250%, 1/01/22
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.4%
700 Tucson, Arizona, Junior Lien Street and Highway User Revenue 7/11 at 100.00 AAA 758,226
Bonds, Series 2001, 5.000%, 7/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 5.3%
2,105 Azusa Unified School District, Los Angeles County, California, 7/12 at 100.00 AAA 2,294,155
General Obligation Bonds, Series 2002, 5.375%, 7/01/21 -
FSA Insured
3,350 California Department of Water Resources, Power Supply 5/12 at 101.00 A2 3,825,432
Revenue Bonds, Series 2002A, 6.000%, 5/01/14
3,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 3,457,650
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
250 Santa Ana Unified School District, Orange County, California, 8/10 at 101.00 AAA 275,870
General Obligation Bonds, Series 2000, 5.700%, 8/01/29 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.9%
Colorado Health Facilities Authority, Revenue Bonds, Catholic
Health Initiatives, Series 2002A:
2,265 5.500%, 3/01/22 3/12 at 100.00 AA*** 2,505,973
1,735 5.500%, 3/01/22 3/12 at 100.00 AA 1,881,503
2,700 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 3,151,305
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
3,000 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 AAA 3,125,370
Revenue Bonds, Convention Center Hotel, Series 2003A,
5.000%, 12/01/24 - XLCA Insured
325 E-470 Public Highway Authority, Colorado, Senior Revenue 9/07 at 101.00 AAA 336,148
Bonds, Series 1997A, 5.000%, 9/01/26 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.1%
250 Connecticut Health and Educational Facilities Authority, 1/06 at 100.00 AAA 256,477
Revenue Bonds, Bridgeport Hospital Issue, Series 1992A,
6.625%, 7/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.2%
235 District of Columbia, General Obligation Refunding Bonds, No Opt. Call AAA 265,978
Series 1994A-1, 6.500%, 6/01/10 - MBIA Insured
15 District of Columbia, General Obligation Bonds, 12/05 at 100.00 AAA 15,044
Series 1993E, 6.000%, 6/01/13 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.0%
4,000 JEA, Florida, Subordinate Lien Electric System Revenue Bonds, 10/07 at 100.00 Aa3 4,012,880
Series 2002D, 4.625%, 10/01/22
5,020 JEA St. John's River Power Park System, Florida, Revenue 10/11 at 100.00 Aa2 5,343,137
Refunding Bonds, Issue 2, Series 2002-17, 5.000%, 10/01/18
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.6%
1,525 Atlanta, Georgia, Airport Facilities Revenue Bonds, Series 1990, No Opt. Call AAA 1,209,508
0.000%, 1/01/10 (Alternative Minimum Tax) - MBIA Insured
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 19.2%
$ 1,160 Chicago Metropolitan Housing Development Corporation, 1/06 at 100.00 AA $ 1,168,886
Illinois, FHA-Insured Section 8 Assisted Housing Development
Revenue Refunding Bonds, Series 1992, 6.850%, 7/01/22
700 Chicago, Illinois, Special Facility Revenue Refunding Bonds, No Opt. Call N/R 84,056
O'Hare International Airport, United Air Lines Inc. Project,
Series 2001C, 6.300%, 5/01/16 #
1,930 Illinois Development Finance Authority, Revenue Bonds, 5/11 at 101.00 A- 2,070,099
Midwestern University, Series 2001B, 5.750%, 5/15/16
2,185 Illinois Finance Authority, Revenue Bonds, YMCA of Southwest 9/15 at 100.00 AA 2,219,086
Illinois, Series 2005, 5.000%, 9/01/31 - RAAI Insured
1,500 Illinois Health Facilities Authority, Revenue Bonds, Evangelical No Opt. Call N/R*** 1,838,640
Hospitals Corporation, Series 1992C, 6.250%, 4/15/22
4,000 Illinois Health Facilities Authority, Revenue Bonds, Franciscan 9/06 at 100.00 AAA 4,130,480
Sisters Healthcare Corporation, Series 1992B,
6.625%, 9/01/13 (Pre-refunded to 9/01/06) - MBIA Insured
4,460 Illinois Health Facilities Authority, Remarketed Revenue Bonds, 8/11 at 103.00 Aa1 4,873,041
University of Chicago Project, Series 1985A, 5.500%, 8/01/20
2,225 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/13 at 100.00 A2 2,487,572
Elmhurst Memorial Healthcare, Series 2002, 6.250%, 1/01/17
5,700 Illinois, Sales Tax Revenue Bonds, First Series 2002, 6/13 at 100.00 AAA 5,989,617
5.000%, 6/15/22
2,000 Illinois, Sales Tax Revenue Bonds, Series 1997X, 6/07 at 101.00 AAA 2,097,020
5.600%, 6/15/17
6,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 6,325,020
Refunding Bonds, McCormick Place Expansion Project,
Series 2002B, 5.000%, 6/15/21 - MBIA Insured
1,300 Schaumburg, Illinois, General Obligation Bonds, Series 2004B, 12/14 at 100.00 AAA 1,396,265
5.250%, 12/01/34 - FGIC Insured
1,000 Yorkville, Illinois, General Obligation Debt Certificates, 12/11 at 100.00 AA 1,024,580
Series 2003, 5.000%, 12/15/22 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 6.4%
1,000 Franklin Community Multi-School Building Corporation, 7/14 at 100.00 AAA 1,053,350
Marion County, Indiana, First Mortgage Revenue Bonds,
Series 2004, 5.000%, 7/15/22 - FGIC Insured
3,500 Indiana Health Facility Financing Authority, Hospital Revenue 9/11 at 100.00 A+ 3,626,070
Bonds, Methodist Hospitals Inc., Series 2001,
5.375%, 9/15/22
2,500 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 2,986,000
Refunding Bonds, Columbus Regional Hospital, Series 1993,
7.000%, 8/15/15 - FSA Insured
2,000 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 2,120,420
Waterworks Project, Series 2002A, 5.250%, 7/01/33 -
MBIA Insured
2,295 Shelbyville Central Renovation School Building Corporation, 7/15 at 100.00 AAA 2,232,599
Indiana, First Mortgage Bonds, Series 2005, 4.375%, 7/15/25 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 3.7%
Iowa Tobacco Settlement Authority, Tobacco Settlement
Asset-Backed Revenue Bonds, Series 2001B:
3,850 5.300%, 6/01/25 6/11 at 101.00 BBB 3,928,771
2,850 5.600%, 6/01/35 6/11 at 101.00 BBB 2,933,534
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.7%
1,200 Maine Health and Higher Educational Facilities Authority, 7/09 at 101.00 AAA 1,319,328
Revenue Bonds, Series 1999B, 6.000%, 7/01/19 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.8%
1,000 Massachusetts Development Finance Agency, Resource 12/08 at 102.00 BBB 1,009,170
Recovery Revenue Bonds, Ogden Haverhill Associates,
Series 1998B, 5.200%, 12/01/13 (Alternative Minimum Tax)
500 Massachusetts Health and Educational Facilities Authority, 7/11 at 101.00 AA- 556,925
Revenue Bonds, Partners HealthCare System Inc.,
Series 2001C, 6.000%, 7/01/17
27
Nuveen Select Tax-Free Income Portfolio 3 (NXR) (continued)
Portfolio of INVESTMENTS September 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 5.1%
$ 400 East Lansing School District, Ingham County, Michigan, 5/10 at 100.00 AA*** $ 439,484
General Obligation Bonds, Series 2000, 5.625%, 5/01/30
(Pre-refunded to 5/01/10)
4,000 Michigan Housing Development Authority, Single Family 6/06 at 102.00 AA+ 4,116,040
Mortgage Revenue Bonds, Series 1996C, 5.950%, 12/01/17
235 Michigan State Hospital Finance Authority, Revenue Refunding 2/06 at 100.00 BB- 235,125
Bonds, Detroit Medical Center Obligated Group, Series 1993A,
6.500%, 8/15/18
2,900 Michigan State Hospital Finance Authority, Hospital Revenue 12/12 at 100.00 AA- 3,042,071
Refunding Bonds, Trinity Health Credit Group, Series 2002C,
5.375%, 12/01/30
1,600 Plymouth-Canton Community School District, Wayne and 5/09 at 100.00 AA 1,661,280
Washtenaw Counties, Michigan, Unlimited Tax General
Obligation School Building and Site Bonds, Series 1999,
4.750%, 5/01/18
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.4%
725 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 719,715
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.9%
3,500 Nebraska Public Power District, General Revenue Bonds, 1/13 at 100.00 AAA 3,627,855
Series 2002B, 5.000%, 1/01/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.9%
4,000 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 4,206,960
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.375%, 1/01/40 - AMBAC Insured
4,510 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 4,960,504
Series 2002, 5.500%, 6/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.4%
775 New Hampshire Housing Finance Agency, Single Family 5/11 at 100.00 Aa2 790,469
Mortgage Acquisition Bonds, Series 2001A, 5.600%, 7/01/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.2%
4,000 University of New Mexico, FHA-Insured Mortgage Hospital 7/14 at 100.00 AAA 4,024,080
Revenue Bonds, Series 2004, 4.625%, 1/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 3.5%
2,335 Long Island Power Authority, New York, Electric System 9/11 at 100.00 A- 2,521,170
General Revenue Bonds, Series 2001A, 5.375%, 9/01/21
35 New York City, New York, General Obligation Bonds, 2/06 at 100.00 A+ 35,106
Series 1991B, 7.000%, 2/01/18
1,835 Dormitory Authority of the State of New York, Second No Opt. Call A2 2,029,180
General Resolution Consolidated Revenue Bonds, City
University System, Series 1990C, 7.500%, 7/01/10
1,850 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 1,996,853
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/15
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 4.3%
5,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 5,415,950
Revenue Bonds, Series 2003A, 5.250%, 1/01/18 -
MBIA Insured
2,345 Piedmont Triad Airport Authority, North Carolina, Airport 7/11 at 101.00 AAA 2,544,560
Revenue Bonds, Series 2001A, 5.250%, 7/01/16 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.7%
3,000 Oklahoma Development Finance Authority, Revenue Bonds, 2/14 at 100.00 AA 3,077,220
St. John Health System, Series 2004, 5.000%, 2/15/24
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.5%
$ 2,435 Dauphin County Industrial Development Authority, No Opt. Call A- $ 2,962,884
Pennsylvania, Water Development Revenue Refunding
Bonds, Dauphin Consolidated Water Supply Company,
Series 1992B, 6.700%, 6/01/17
500 Pennsylvania Higher Educational Facilities Authority, 7/13 at 100.00 BBB+ 522,875
Revenue Bonds, Widener University, Series 2003,
5.250%, 7/15/24
1,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,085,590
Pennsylvania, Airport Revenue Bonds, Philadelphia
Airport System Project, Series 2001A, 5.500%, 7/01/17
(Alternative Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.2%
1,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 1,663,365
Hospital Revenue Refunding and Improvement Bonds,
Series 2003, 6.000%, 11/01/18
1,500 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AAA 1,619,070
FHA-Insured Mortgage Revenue Bonds, Series 2004A,
5.250%, 8/15/20 - MBIA Insured
2,500 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- 2,643,925
Economic Development Revenue Bonds, Bon Secours
Health System Inc., Series 2002A, 5.625%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.1%
1,010 South Dakota Health and Educational Facilities Authority, 7/12 at 101.00 AAA 1,058,026
Revenue Bonds, Avera Health, Series 2002, 5.125%, 7/01/27 -
AMBAC Insured
1,000 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 A+ 1,040,330
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.250%, 11/01/34
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.1%
2,000 Knox County Health, Educational and Housing Facilities 4/12 at 101.00 Baa3 2,122,620
Board, Tennessee, Hospital Revenue Bonds, Baptist Health
System of East Tennessee Inc., Series 2002, 6.375%, 4/15/22
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 15.5%
1,500 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 1,537,305
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/45 - FGIC Insured
3,755 Grand Prairie Industrial Development Authority, Texas, No Opt. Call A- 3,765,139
Industrial Development Revenue Refunding Bonds, Baxter
International Inc. Project, Series 1992, 6.550%, 12/01/12
2,500 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 2,584,150
Texas, Thermal Utility Revenue Bonds, TECO Project,
Series 2003, 5.000%, 11/15/30 - MBIA Insured
3,000 Houston, Texas, Subordinate Lien Airport System Revenue 7/12 at 100.00 AAA 3,288,900
Bonds, Series 2002B, 5.500%, 7/01/18 - FSA Insured
3,125 Katy Independent School District, Harris, Fort Bend and 2/12 at 100.00 AAA 3,213,219
Waller Counties, Texas, General Obligation Bonds,
Series 2002A, 5.000%, 2/15/32
Killeen Independent School District, Bell County, Texas,
General Obligation Bonds, Series 1998:
1,425 5.000%, 2/15/14 (Pre-refunded to 2/15/08) 2/08 at 100.00 AAA 1,488,142
400 5.000%, 2/15/14 2/08 at 100.00 AAA 415,444
5,000 North Central Texas Health Facilities Development 5/06 at 102.00 AA- 5,115,200
Corporation, Hospital Revenue Refunding Bonds, Baylor
Healthcare System, Series 1995, 5.250%, 5/15/16
4,750 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 5,094,470
System Revenue Refunding Bonds, Series 2002A,
5.500%, 10/01/17 - RAAI Insured
1,750 Texas, General Obligation Bonds, Water Financial Assistance 8/13 at 100.00 Aa1 1,790,460
Program, Series 2003A, 5.125%, 8/01/42 (Alternative
Minimum Tax)
500 Victoria, Texas, General Obligation Bonds, Series 2001, 8/11 at 100.00 AAA 524,700
5.000%, 8/15/23 - FGIC Insured
29
Nuveen Select Tax-Free Income Portfolio 3 (NXR) (continued)
Portfolio of INVESTMENTS September 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.9%
$ 1,710 Intermountain Power Agency, Utah, Power Supply Revenue 7/06 at 102.00 A+ $ 1,745,996
Refunding Bonds, Series 1996D, 5.000%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.4%
2,500 Wisconsin, General Obligation Refunding Bonds, 11/13 at 100.00 AA- 2,614,020
Series 2003-3, 5.000%, 11/01/26
------------------------------------------------------------------------------------------------------------------------------------
$ 174,235 Total Long-Term Investments (cost $175,877,818) - 98.7% 184,073,462
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 2,403,189
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 186,476,651
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
# On December 9, 2002, UAL Corporation, the holding
company of United Air Lines, Inc. filed for federal
bankruptcy protection. The Adviser determined that it
was likely United would not remain current on their
interest payment obligations with respect to these
bonds and thus has stopped accruing interest.
N/R Investment is not rated.
See accompanying notes to financial statements.
30
Nuveen California Select Tax-Free Income Portfolio (NXC)
Portfolio of
INVESTMENTS September 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.9%
$ 1,740 California County Tobacco Securitization Agency, Tobacco 6/12 at 100.00 BBB $ 1,770,398
Settlement Asset-Backed Revenue Bonds, Fresno County
Tobacco Funding Corporation, Series 2002, 5.625%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.1%
1,000 California Educational Facilities Authority, Revenue Bonds, 12/09 at 101.00 AAA 1,054,680
Stanford University, Series 1999P, 5.000%, 12/01/23
2,600 California Educational Facilities Authority, Revenue Bonds, 11/11 at 100.00 A2 2,725,970
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 1,061,350
University of San Diego, Series 2002A, 5.500%, 10/01/32
3,000 California Infrastructure Economic Development Bank, 10/11 at 101.00 A- 3,196,350
Revenue Bonds, J. David Gladstone Institutes, Series 2001,
5.500%, 10/01/19
2,000 California State Public Works Board, Lease Revenue Bonds, 10/12 at 100.00 AAA 2,093,120
University of California System, Series 2002A,
5.000%, 10/01/22 - FSA Insured
1,000 Long Beach Bond Financing Authority, California, 11/11 at 101.00 AAA 1,057,150
Lease Revenue Refunding Bonds, Long Beach Aquarium of
the South Pacific, Series 2001, 5.250%, 11/01/30 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 9.1%
225 California Health Facilities Financing Authority, Revenue 11/15 at 100.00 A3 229,450
Bonds, Cedars-Sinai Medical Center, Series 2005,
5.000%, 11/15/34
2,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 2,115,860
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
90 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 93,580
Revenue Bonds, Daughters of Charity Health System,
Series 2005A, 5.250%, 7/01/24
1,880 California Statewide Community Development Authority, 6/07 at 101.00 AAA 1,968,529
Revenue Bonds, Los Angeles Orthopaedic Hospital
Foundation, Series 2000, 5.500%, 6/01/17 - AMBAC Insured
1,500 California Statewide Community Development Authority, 11/09 at 102.00 A 1,576,065
Insured Mortgage Hospital Revenue Bonds, Mission
Community Hospital, Series 2001, 5.375%, 11/01/26
1,500 California Statewide Community Development Authority, 6/13 at 100.00 AAA 1,617,060
Hospital Revenue Bonds, Monterey Peninsula Hospital,
Series 2003B, 5.250%, 6/01/18 - FSA Insured
790 Central California Joint Powers Health Finance Authority, 2/06 at 100.00 Baa2 789,984
Certificates of Participation, Community Hospitals of
Central California, Series 1993, 5.000%, 2/01/23
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 0.9%
750 California Statewide Community Development Authority, 8/12 at 100.00 A 787,590
Student Housing Revenue Bonds, EAH - Irvine East
Campus Apartments, LLC Project, Series 2002A,
5.500%, 8/01/22 - ACA Insured
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.4%
1,250 California Pollution Control Financing Authority, Solid Waste No Opt. Call BBB+ 1,327,988
Disposal Revenue Bonds, Republic Services Inc.,
Series 2002C, 5.250%, 6/01/23 (Alternative Minimum Tax)
(Mandatory put 12/01/17)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.7%
1,500 ABAG Finance Authority for Non-Profit Corporations, 11/12 at 100.00 A 1,569,555
California, Insured Senior Living Revenue Bonds, Odd
Fellows Home of California, Series 2003A, 5.200%, 11/15/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 22.1%
California, General Obligation Bonds, Series 2003:
500 5.250%, 11/01/19 - RAAI Insured 11/13 at 100.00 AA 544,420
1,450 5.250%, 2/01/21 8/13 at 100.00 A 1,564,739
1,000 5.250%, 2/01/22 - CIFG Insured 8/13 at 100.00 AAA 1,067,720
31
Nuveen California Select Tax-Free Income Portfolio (NXC) (continued)
Portfolio of INVESTMENTS September 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
California, General Obligation Bonds, Series 2004:
$ 750 5.000%, 2/01/23 2/14 at 100.00 A $ 784,538
800 5.125%, 4/01/25 4/14 at 100.00 A 843,968
2,000 Fremont Unified School District, Alameda County, California, 8/12 at 101.00 AAA 2,124,300
General Obligation Bonds, Series 2002A, 5.000%, 8/01/21 -
FGIC Insured
Golden West Schools Financing Authority, California, General
Obligation Revenue Refunding Bonds, School District Program,
Series 1999A:
4,650 0.000%, 8/01/16 - MBIA Insured No Opt. Call AAA 2,923,176
1,750 0.000%, 2/01/17 - MBIA Insured No Opt. Call AAA 1,067,290
2,375 0.000%, 8/01/17 - MBIA Insured No Opt. Call AAA 1,417,210
2,345 0.000%, 2/01/18 - MBIA Insured No Opt. Call AAA 1,357,614
395 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 417,452
California, General Obligation Bonds, Series 2005A,
5.000%, 6/01/26 - FSA Insured
Mountain View-Los Altos Union High School District, Santa Clara
County, California, General Obligation Capital Appreciation
Bonds, Series 1995C:
1,015 0.000%, 5/01/17 - MBIA Insured No Opt. Call AAA 612,319
1,080 0.000%, 5/01/18 - MBIA Insured No Opt. Call AAA 618,365
Oakland Unified School District, Alameda County, California,
General Obligation Bonds, Series 2005:
130 5.000%, 8/01/25 - MBIA Insured 8/15 at 100.00 AAA 137,389
135 5.000%, 8/01/26 - MBIA Insured 8/15 at 100.00 AAA 142,231
1,500 San Diego Unified School District, San Diego County, 7/13 at 101.00 AAA 1,659,720
California, General Obligation Bonds, Series 2003E,
5.250%, 7/01/24 - FSA Insured
San Jose-Evergreen Community College District, Santa Clara
County, California, General Obligation Bonds, Series 2005A:
100 5.000%, 9/01/25 - MBIA Insured 9/15 at 100.00 AAA 105,974
150 5.000%, 9/01/27 - MBIA Insured 9/15 at 100.00 AAA 158,340
2,565 Sunnyvale School District, Santa Clara County, California, 9/15 at 100.00 AAA 2,711,846
General Obligation Bonds, Series 2005A, 5.000%, 9/01/26 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 13.3%
1,000 Bell Community Redevelopment Agency, California, Tax 10/13 at 100.00 AA 1,072,130
Allocation Bonds, Bell Project Area, Series 2003,
5.625%, 10/01/33 - RAAI Insured
California, Economic Recovery Revenue Bonds, Series 2004A:
1,250 5.000%, 7/01/15 7/14 at 100.00 AA- 1,357,338
1,000 5.000%, 7/01/16 7/11 at 100.00 AA- 1,069,050
1,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A- 1,090,930
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.500%, 6/01/23
3,500 California State Public Works Board, Lease Revenue Bonds, No Opt. Call AAA 4,223,415
Department of Corrections, Calipatria State Prison,
Series 1991A, 6.500%, 9/01/17 - MBIA Insured
90 Hesperia Community Redevelopment Agency, California, 9/15 at 100.00 AAA 95,602
Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/20 -
XLCA Insured
1,300 Orange County, California, Special Tax Bonds, Community 8/12 at 101.00 N/R 1,335,672
Facilities District 03-1 of Ladera Ranch, Series 2004A,
5.625%, 8/15/34
105 Rialto Redevelopment Agency, California, Tax Allocation 9/15 at 100.00 AAA 108,607
Bonds, Merged Project Area, Series 2005A, 5.000%, 9/01/35 -
XLCA Insured
215 Riverside County Public Financing Authority, California, 10/15 at 100.00 AAA 222,968
Tax Allocation Bonds, Multiple Projects, Series 2005A,
5.000%, 10/01/35 - XLCA Insured
605 Sacramento City Financing Authority, California, Lease No Opt. Call AAA 684,848
Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 -
MBIA Insured
1,000 Santa Clara County Board of Education, California, Certificates 4/12 at 101.00 AAA 1,042,210
of Participation, Series 2002, 5.000%, 4/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.8%
1,150 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 BBB- 1,089,913
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 5,000 Los Angeles Harbors Department, California, Revenue 8/11 at 100.00 AAA $ 5,406,900
Refunding Bonds, Series 2001B, 5.500%, 8/01/17
(Alternative Minimum Tax) - AMBAC Insured
3,305 Palm Springs Financing Authority, California, Palm Springs 1/06 at 100.00 AAA 3,312,602
Regional Airport Revenue Bonds, Series 1992,
6.000%, 1/01/12 (Alternative Minimum Tax) - MBIA Insured
1,000 Port of Oakland, California, Revenue Bonds, Series 2002M, 11/12 at 100.00 AAA 1,082,850
5.250%, 11/01/20 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 5.6%
500 Beverly Hills Unified School District, Los Angeles County, 8/12 at 100.00 AA*** 546,435
California, General Obligation Bonds, Series 2002A,
5.000%, 8/01/26 (Pre-refunded to 8/01/12)
750 California Educational Facilities Authority, Revenue Bonds, 8/09 at 100.00 A1*** 815,108
Pepperdine University, Series 2002A, 5.500%, 8/01/32
(Pre-refunded to 8/01/09)
1,400 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 Aaa 1,566,068
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B, 5.500%, 6/01/33 (Pre-refunded to 6/01/13)
2,000 North Orange County Community College District, California, 8/12 at 101.00 AAA 2,193,860
General Obligation Bonds, Series 2002A, 5.000%, 8/01/22
(Pre-refunded to 8/01/12) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.4%
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
2,000 5.750%, 5/01/17 5/12 at 101.00 A2 2,224,200
2,000 5.125%, 5/01/19 5/12 at 101.00 A2 2,121,040
200 Los Angeles Department of Water and Power, California, 7/13 at 100.00 AAA 212,384
Power System Revenue Bonds, Series 2003A-2,
5.000%, 7/01/21 - MBIA Insured
1,225 Turlock Irrigation District, California, Revenue Refunding No Opt. Call AAA 1,374,193
Bonds, Series 1992A, 6.250%, 1/01/12 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.7%
2,160 California Statewide Community Development Authority, 10/11 at 101.00 AAA 2,316,319
Water and Wastewater Revenue Bonds, Pooled Financing
Program, Series 2001B, 5.125%, 10/01/22 - FSA Insured
2,800 Los Angeles, California, Wastewater System Revenue Bonds, 6/08 at 101.00 AAA 2,931,544
Series 1998A, 5.000%, 6/01/23 - FGIC Insured
825 South Feather Water and Power Agency, California, Water 4/13 at 100.00 BBB 852,233
Revenue Certificates of Participation, Solar Photovoltaic
Project, Series 2003, 5.375%, 4/01/24
1,000 Woodbridge Irrigation District, California, Certificates 7/13 at 100.00 BBB+ 1,044,177
of Participation, Water Systems Project, Series 2003,
5.625%, 7/01/43
------------------------------------------------------------------------------------------------------------------------------------
$ 86,895 Total Long-Term Investments (cost $81,860,518) - 94.0% 86,685,886
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 6.0% 5,533,241
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 92,219,127
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
** 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.
See accompanying notes to financial statements.
33
Nuveen New York Select Tax-Free Income Portfolio (NXN)
Portfolio of
INVESTMENTS September 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.2%
$ 100 New York City Industrial Development Agency, New York, 9/15 at 100.00 BBB- $ 101,418
Liberty Revenue Bonds, IAC/InterActiveCorp, Series 2005,
5.000%, 9/01/35 (DD, settling 10/03/05)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.0%
1,080 TSASC Inc., New York, Tobacco Asset-Backed Bonds, 7/12 at 100.00 BBB 1,134,140
Series 2002-1, 5.500%, 7/15/24
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 9.0%
1,700 Amherst Industrial Development Agency, New York, Revenue 8/12 at 101.00 AAA 1,801,796
Bonds, UBF Faculty/Student Housing Corporation, University
of Buffalo Creekside Project, Series 2002A,
5.000%, 8/01/22 - AMBAC Insured
100 New York City Industrial Development Agency, New York, 10/14 at 100.00 A- 102,736
Civic Facility Revenue Bonds, St. Francis College,
Series 2004, 5.000%, 10/01/34
500 New York City Industrial Development Agency, New York, 2/11 at 100.00 A- 519,385
Civic Facility Revenue Bonds, YMCA of Greater New York,
Series 2002, 5.250%, 8/01/21
490 Dormitory Authority of the State of New York, Second No Opt. Call AAA 547,869
General Resolution Consolidated Revenue Bonds, City
University System, Series 1990C, 7.500%, 7/01/10 -
FGIC Insured
1,000 Dormitory Authority of the State of New York, Insured 7/07 at 101.00 AAA 1,043,470
Revenue Bonds, Rochester Institute of Technology,
Series 1997, 5.250%, 7/01/22 - MBIA Insured
785 Dormitory Authority of the State of New York, Insured Revenue 7/12 at 100.00 AAA 818,025
Bonds, Iona College, Series 2002, 5.000%, 7/01/22 -
XLCA Insured
200 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB 205,574
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University
System, Series 1999, 5.375%, 2/01/19
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 11.3%
750 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 AAA 813,818
Health System Revenue Bonds, Series 2003A,
5.250%, 2/15/21 - AMBAC Insured
250 New York City Industrial Development Agency, New York, 7/12 at 101.00 B2 249,053
Civic Facility Revenue Bonds, Staten Island University
Hospital, Series 2002C, 6.450%, 7/01/32
250 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 262,443
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/29 - FGIC Insured
415 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 454,487
New York and Presbyterian Hospital, Series 2004A,
5.250%, 8/15/15 - FSA Insured
500 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 521,575
Winthrop South Nassau University Hospital Association,
Series 2003A, 5.500%, 7/01/32
670 Dormitory Authority of the State of New York, Revenue 7/13 at 100.00 AAA 708,384
Bonds, Memorial Sloan-Kettering Cancer Center,
Series 2003-1, 5.000%, 7/01/21 - MBIA Insured
250 Dormitory Authority of the State of New York, Revenue Bonds, 5/13 at 100.00 A3 262,688
North Shore Long Island Jewish Group, Series 2003,
5.375%, 5/01/23
1,680 Dormitory Authority of the State of New York, Revenue 7/11 at 101.00 AAA 1,811,561
Bonds, Winthrop South Nassau University Health System
Obligated Group, Series 2001A, 5.250%, 7/01/17 -
AMBAC Insured
1,195 Dormitory Authority of the State of New York, Revenue 7/11 at 101.00 AAA 1,288,580
Bonds, Winthrop South Nassau University Health System
Obligated Group, Series 2001B, 5.250%, 7/01/17 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.2%
1,000 East Rochester Housing Authority, New York, Revenue 12/12 at 103.00 AAA 1,074,390
Bonds, GNMA/FHA-Secured Revenue Bonds, St. Mary's
Residence Project, Series 2002A, 5.375%, 12/20/22
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 1,000 New Hartford-Sunset Woods Funding Corporation, New York, 8/12 at 101.00 AAA $ 1,060,860
FHA-Insured Mortgage Revenue Bonds, Sunset Woods
Apartments II Project, Series 2002, 5.350%, 2/01/20
250 New York City Housing Development Corporation, New York, 5/14 at 100.00 AA 261,048
Multifamily Housing Revenue Bonds, Series 2004A,
5.250%, 11/01/30
160 New York City Housing Development Corporation, New York, 11/15 at 100.00 AA 159,994
Multifamily Housing Revenue Bonds, Series 2005F-1,
4.750%, 11/01/35
380 New York State Housing Finance Agency, FHA-Insured 2/06 at 100.00 AAA 380,597
Multifamily Housing Mortgage Revenue Bonds, Series 1992C,
6.450%, 8/15/14 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.2%
2,500 New York State Mortgage Agency, Mortgage Revenue Bonds, 4/11 at 100.00 Aaa 2,556,550
Thirty-First Series A, 5.300%, 10/01/31 (Alternative
Minimum Tax)
2,000 New York State Mortgage Agency, Homeowner Mortgage 10/11 at 100.00 Aa1 2,039,960
Revenue Bonds, Series 101, 5.000%, 10/01/18 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 9.3%
2,000 East Rochester Housing Authority, New York, FHA-Insured 8/12 at 101.00 AAA 2,075,100
Mortgage Revenue Refunding Bonds, Jewish Home of
Rochester, Series 2002, 4.625%, 2/15/17
1,000 New York City Industrial Development Agency, New York, 11/12 at 101.00 AA+ 1,027,400
GNMA Collateralized Mortgage Revenue Bonds, Eger
Harbor House Inc., Series 2002A, 4.950%, 11/20/32
50 Dormitory Authority of the State of New York, Revenue Bonds, 7/15 at 100.00 A 50,605
Providence Rest, Series 2005, 5.000%, 7/01/35 -
ACA Insured
2,000 Dormitory Authority of the State of New York, FHA-Insured 8/11 at 101.00 AAA 2,093,280
Nursing Home Mortgage Revenue Bonds, Norwegian
Christian Home and Health Center, Series 2001,
5.200%, 8/01/36 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 6.5%
Clarkstown, Rickland County, New York, Various Purposes
Serial Bonds, Series 1992:
505 5.600%, 6/15/10 - AMBAC Insured No Opt. Call AAA 555,424
525 5.600%, 6/15/11 - AMBAC Insured No Opt. Call AAA 583,805
525 5.600%, 6/15/12 - AMBAC Insured No Opt. Call AAA 593,597
750 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 AAA 806,190
Series 2004I, 5.000%, 8/01/17 - MBIA Insured
300 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 A+ 326,484
Series 2004C, 5.250%, 8/15/16
225 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 244,760
Series 2006C, 5.000%, 8/01/16 - FSA Insured
500 West Islip Union Free School District, Suffolk County, 10/15 at 100.00 Aaa 545,845
New York, General Obligation Bonds, Series 2005,
5.000%, 10/01/16 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 13.9%
600 Battery Park City Authority, New York, Senior Revenue Bonds, 11/13 at 100.00 AAA 636,912
Series 2003A, 5.000%, 11/01/23
500 Erie County Industrial Development Agency, New York, 5/14 at 100.00 AAA 569,270
School Facility Revenue Bonds, Buffalo City School District,
Series 2004, 5.750%, 5/01/26 - FSA Insured
500 Metropolitan Transportation Authority, New York, State 7/12 at 100.00 AAA 552,370
Service Contract Refunding Bonds, Series 2002A,
5.500%, 1/01/20 - MBIA Insured
95 Nassau County Interim Finance Authority, New York, Sales 11/06 at 101.00 AAA 98,066
Tax Secured Revenue Bonds, Series 2001A-2,
5.125%, 11/15/21 - AMBAC Insured
670 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 702,857
Future Tax Secured Bonds, Fiscal Series 2003E,
5.000%, 2/01/23
Dormitory Authority of the State of New York, Revenue
Bonds, Mental Health Services Facilities Improvements,
Series 2005D:
175 5.000%, 2/15/14 - FGIC Insured No Opt. Call AAA 190,328
320 5.000%, 8/15/14 - FGIC Insured No Opt. Call AAA 348,938
570 New York State Thruway Authority, Highway and Bridge No Opt. Call AAA 655,580
Trust Fund Bonds, Second Generation, Series 2005B,
5.500%, 4/01/20 - AMBAC Insured
35
Nuveen New York Select Tax-Free Income Portfolio (NXN) (continued)
Portfolio of INVESTMENTS September 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 250 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA $ 265,185
Fund Bonds, Second General, Series 2004,
5.000%, 4/01/21 - MBIA Insured
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
250 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 265,590
200 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 212,008
1,225 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 1,294,764
New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
1,000 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA 1,089,040
250 5.250%, 6/01/21 - AMBAC Insured 6/13 at 100.00 AAA 271,395
500 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 545,810
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21
75 Triborough Bridge and Tunnel Authority, New York, Convention No Opt. Call AA- 81,856
Center Bonds, Series 1990E, 7.250%, 1/01/10
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.8%
400 Albany Parking Authority, New York, Revenue Bonds, 7/11 at 101.00 BBB+ 426,096
Series 2001A, 5.625%, 7/15/25
500 Metropolitan Transportation Authority, New York, No Opt. Call AAA 549,045
Transportation Revenue Bonds, Series 2003A,
5.000%, 11/15/15 - FGIC Insured
375 Metropolitan Transportation Authority, New York, 11/15 at 100.00 AAA 394,301
Transportation Revenue Bonds, Series 2005B,
5.000%, 11/15/35 - MBIA Insured
500 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 524,965
Series 2005G, 5.000%, 1/01/32 - FSA Insured
250 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AAA 270,633
Revenue Bonds, One Hundred Fortieth Series 2005,
5.000%, 12/01/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 10.0%
1,305 Dormitory Authority of the State of New York, Judicial No Opt. Call AAA 1,578,189
Facilities Lease Revenue Bonds, Suffolk County Issue,
Series 1986, 7.375%, 7/01/16
1,430 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AA-*** 1,567,809
Upstate Community Colleges, Series 2002A,
5.000%, 7/01/23 (Pre-refunded to 7/01/11)
750 New York State Thruway Authority, Highway and Bridge 4/13 at 100.00 AAA 833,078
Trust Fund Bonds, Second General, Series 2003A,
5.250%, 4/01/23 (Pre-refunded to 4/01/13) - MBIA Insured
1,000 New York State Urban Development Corporation, State 3/13 at 100.00 AAA 1,126,850
Personal Income Tax Revenue Bonds, State Facilities
and Equipment, Series 2002C-1, 5.500%, 3/15/21
(Pre-refunded to 3/15/13) - FGIC Insured
485 Suffolk County Water Authority, New York, Water Revenue No Opt. Call AAA 550,072
Bonds, Series 1986V, 6.750%, 6/01/12
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.1%
2,000 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 2,103,420
General Revenue Bonds, Series 1998A, 5.125%, 12/01/22 -
FSA Insured
1,000 Long Island Power Authority, New York, Electric System 9/13 at 100.00 AAA 1,079,950
General Revenue Bonds, Series 2003C, 5.000%, 9/01/16 -
CIFG Insured
500 New York State Energy Research and Development Authority, 3/08 at 101.50 AAA 503,520
Pollution Control Revenue Bonds, New York State Electric
and Gas Corporation, Series 2005A, 4.100%, 3/15/15 -
MBIA Insured
250 Niagara County Industrial Development Agency, New York, 11/11 at 101.00 Baa3 265,655
Solid Waste Disposal Facility Revenue Bonds, American
Ref-Fuel Company of Niagara LP, Series 2001A,
5.450%, 11/15/26 (Alternative Minimum Tax)
(Mandatory put 11/15/12)
60 Westchester County Industrial Development Agency, 7/07 at 101.00 BBB 62,044
Westchester County, New York, Resource Recovery
Revenue Bonds, RESCO Company, Series 1996,
5.500%, 7/01/09 (Alternative Minimum Tax)
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.2%
$ 2,500 New York City Municipal Water Finance Authority, 6/11 at 101.00 AA+ $ 2,583,600
New York, Water and Sewerage System Revenue Bonds,
Fiscal Series 2001C, 5.125%, 6/15/33
New York State Environmental Facilities Corporation, State Clean
Water and Drinking Water Revolving Funds Revenue Bonds, New York
City Municipal Water Finance Authority Loan, Series 2002B:
2,000 5.250%, 6/15/19 6/12 at 100.00 AAA 2,183,180
2,000 5.000%, 6/15/27 6/12 at 100.00 AAA 2,087,215
------------------------------------------------------------------------------------------------------------------------------------
$ 52,070 Total Long-Term Investments (cost $53,133,242) - 98.7% 55,552,482
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 742,854
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 56,295,336
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
** 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.
(DD) Security purchased on delayed delivery basis.
See accompanying notes to financial statements
37
Statement of
ASSETS AND LIABILITIES September 30, 2005 (Unaudited)
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)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value
(cost $224,339,961, $242,110,465,
$175,877,818, $81,860,518 and
$53,133,242, respectively) $238,324,838 $252,078,511 $184,073,462 $86,685,886 $55,552,482
Cash -- -- -- 2,340,925 66,726
Receivables:
Interest 3,858,390 3,855,921 2,729,005 1,279,958 748,639
Investments sold -- -- -- 1,950,000 51,164
Other assets 63,613 67,489 49,572 26,262 17,607
------------------------------------------------------------------------------------------------------------------------------------
Total assets 242,246,841 256,001,921 186,852,039 92,283,031 56,436,618
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 361,266 175,448 245,802 -- --
Payable for investments purchased -- -- -- -- 100,000
Accrued expenses:
Management fees 46,682 59,774 44,014 22,078 13,496
Other 110,954 117,298 85,572 41,826 27,786
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 518,902 352,520 375,388 63,904 141,282
------------------------------------------------------------------------------------------------------------------------------------
Net assets $241,727,939 $255,649,401 $186,476,651 $92,219,127 $56,295,336
====================================================================================================================================
Shares outstanding 16,378,096 17,607,068 12,964,124 6,257,070 3,908,223
====================================================================================================================================
Net asset value per share outstanding
(net assets divided by shares outstanding) $ 14.76 $ 14.52 $ 14.38 $ 14.74 $ 14.40
====================================================================================================================================
NET ASSETS CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Shares, $.01 par value per share $ 163,781 $ 176,071 $ 129,641 $ 62,571 $ 39,082
Paid-in surplus 227,635,043 245,690,697 178,372,582 87,121,715 53,622,239
Undistributed (Over-distribution of)
net investment income (64,885) (445,003) (257,962) (111,979) (87,452)
Accumulated net realized gain from investments 9,123 259,590 36,746 321,452 302,227
Net unrealized appreciation of investments 13,984,877 9,968,046 8,195,644 4,825,368 2,419,240
------------------------------------------------------------------------------------------------------------------------------------
Net assets $241,727,939 $255,649,401 $186,476,651 $92,219,127 $56,295,336
====================================================================================================================================
Authorized shares Unlimited Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
38
Statement of
OPERATIONS Six Months Ended September 30, 2005 (Unaudited)
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)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 6,088,088 $ 6,245,533 $ 4,536,622 $ 2,237,894 $ 1,319,340
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 285,395 365,213 268,750 134,663 82,419
Shareholders' servicing agent fees and expenses 18,870 17,608 14,157 4,980 3,917
Custodian's fees and expenses 29,437 29,533 22,559 11,455 10,738
Trustees' fees and expenses 1,790 1,461 1,258 642 361
Professional fees 9,259 9,334 7,135 3,778 3,643
Shareholders' reports - printing and
mailing expenses 12,956 12,420 9,007 5,288 4,105
Stock exchange listing fees 5,206 5,206 5,206 5,035 5,210
Investor relations expense 19,728 20,839 15,114 6,862 4,279
Other expenses 3,703 3,922 3,216 2,128 1,710
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 386,344 465,536 346,402 174,831 116,382
Custodian fee credit (10,345) (17,000) (11,638) (5,611) (2,538)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 375,999 448,536 334,764 169,220 113,844
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,712,089 5,796,997 4,201,858 2,068,674 1,205,496
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
Net realized gain from investments 729 140,269 8,902 271,953 130,224
Change in net unrealized appreciation
(depreciation) of investments 2,156,055 2,364,956 2,073,919 994,203 357,815
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain 2,156,784 2,505,225 2,082,821 1,266,156 488,039
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 7,868,873 $ 8,302,222 $ 6,284,679 $ 3,334,830 $ 1,693,535
====================================================================================================================================
See accompanying notes to financial statements.
39
Statement of
CHANGES IN NET ASSETS (Unaudited)
SELECT TAX-FREE (NXP) SELECT TAX-FREE 2 (NXQ) SELECT TAX-FREE 3 (NXR)
---------------------------- ------------------------------ -----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
9/30/05 3/31/05 9/30/05 3/31/05 9/30/05 3/31/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,712,089 $ 11,460,333 $ 5,796,997 $ 11,857,079 $ 4,201,858 $ 8,597,048
Net realized gain from investments 729 1,298,950 140,269 392,947 8,902 465,025
Change in net unrealized
appreciation (depreciation)
of investments 2,156,055 (3,258,427) 2,364,956 (2,835,579) 2,073,919 (1,854,352)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations 7,868,873 9,500,856 8,302,222 9,414,447 6,284,679 7,207,721
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (5,601,308) (11,587,432) (5,810,336) (11,902,381) (4,187,413) (8,741,600)
From accumulated net realized gains
from investments -- (1,618,228) -- (727,172) -- (444,780)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (5,601,308) (13,205,660) (5,810,336) (12,629,553) (4,187,413) (9,186,380)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets 2,267,565 (3,704,804) 2,491,886 (3,215,106) 2,097,266 (1,978,659)
Net assets at the beginning
of period 239,460,374 243,165,178 253,157,515 256,372,621 184,379,385 186,358,044
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $241,727,939 $239,460,374 $255,649,401 $253,157,515 $186,476,651 $184,379,385
====================================================================================================================================
Undistributed (Over-distribution
of) net investment
income at the
end of period $ (64,885) $ (175,666) $ (445,003) $ (431,664) $ (257,962) $ (272,407)
====================================================================================================================================
See accompanying notes to financial statements.
40
CALIFORNIA SELECT TAX-FREE (NXC) NEW YORK SELECT TAX-FREE (NXN)
-------------------------------- ------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
9/30/05 3/31/05 9/30/05 3/31/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,068,674 $ 4,140,965 $ 1,205,496 $ 2,508,691
Net realized gain from investments 271,953 49,639 130,224 246,834
Change in net unrealized appreciation
(depreciation) of investments 994,203 (670,557) 357,815 (1,058,725)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations 3,334,830 3,520,047 1,693,535 1,696,800
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (2,064,834) (4,142,182) (1,215,456) (2,587,119)
From accumulated net realized gains
from investments -- (292,831) -- (250,126)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (2,064,834) (4,435,013) (1,215,456) (2,837,245)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 1,269,996 (914,966) 478,079 (1,140,445)
Net assets at the beginning of period 90,949,131 91,864,097 55,817,257 56,957,702
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $92,219,127 $90,949,131 $56,295,336 $55,817,257
====================================================================================================================================
Undistributed (Over-distribution of) net
investment income at the
end of period $ (111,979) $ (115,819) $ (87,452) $ (77,492)
====================================================================================================================================
See accompanying notes to financial statements.
41
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds (the "Funds") covered in this report and their corresponding New York
Stock Exchange symbols are Nuveen Select Tax-Free Income Portfolio (NXP), Nuveen
Select Tax-Free Income Portfolio 2 (NXQ), Nuveen Select Tax-Free Income
Portfolio 3 (NXR), Nuveen California Select Tax-Free Income Portfolio (NXC) and
Nuveen New York Select Tax-Free Income Portfolio (NXN). The Funds are registered
under the Investment Company Act of 1940, as amended, as closed-end, diversified
management investment companies.
Each Fund seeks to provide stable dividends consistent with the preservation of
capital, exempt from regular federal and designated state income taxes, where
applicable, by investing primarily in a diversified portfolio of municipal
obligations.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When market price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service or, in the absence of a pricing service for a
particular security, the Board of Trustees of the Funds, or its designee, may
establish fair market value using a wide variety of market data including yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, market quotes or indications of value from securities
dealers, evaluations of anticipated cash flows or collateral, general market
conditions and other information and analysis, including the obligorcredit
characteristics considered relevant by the pricing service of the Board of
Trustees' designee. 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.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued or delayed delivery basis may have
extended settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At September 30, 2005,
New York Select Tax-Free (NXN) had an outstanding delayed delivery purchase
commitment of $100,000. There were no such outstanding purchase commitments in
any of the other Funds.
42
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund 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 Funds. Net realized capital gains and
ordinary income distributions paid by the Funds are subject to federal taxation.
Dividends and Distributions to Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
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 U.S. generally accepted
accounting principles.
Derivative Financial Instruments
The Funds are not authorized to invest in derivative financial instruments.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Indemnifications
Under the Funds' organizational documents, their Officers and Trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
43
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
2. FUND SHARES
None of the Funds engaged in transactions in their own shares during the six
months ended September 30, 2005, nor during the fiscal year ended March 31,
2005.
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the six months ended September 30, 2005, 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 $4,305,017 $1,881,602 $7,895,226 $1,306,859 $3,349,225
Sales and maturities 1,076,650 3,076,000 6,285,000 5,438,635 3,408,421
==========================================================================================================
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 the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount and timing differences in recognizing
certain gains and losses on investment transactions.
At September 30, 2005, the cost of investments was as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
----------------------------------------------------------------------------------------------------------
Cost of investments $224,001,345 $242,021,754 $175,826,138 $81,859,600 $53,128,858
==========================================================================================================
44
Gross unrealized appreciation and gross unrealized depreciation of investments
at September 30, 2005, were as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $16,548,351 $12,234,220 $8,957,507 $4,849,330 $2,483,640
Depreciation (2,224,858) (2,177,463) (710,183) (23,044) (60,016)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation
of investments $14,323,493 $10,056,757 $8,247,324 $4,826,286 $2,423,624
==========================================================================================================
The tax components of undistributed net investment income and net realized gains
at March 31, 2005, the Funds' last fiscal year end, were as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
----------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income* $445,452 $455,464 $389,781 $227,670 $127,589
Undistributed net ordinary income** -- -- -- 49,498 --
Undistributed net long-term capital gains 8,396 119,320 27,844 -- 172,003
==========================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on March 1, 2005, paid on April 1, 2005.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the fiscal year ended March 31,
2005, the Funds' last fiscal year end, was designated for purposes of the
dividends paid deduction as follows:
CALIFORNIA NEW YORK
SELECT SELECT SELECT SELECT SELECT
TAX-FREE TAX-FREE 2 TAX-FREE 3 TAX-FREE TAX-FREE
(NXP) (NXQ) (NXR) (NXC) (NXN)
----------------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income $11,595,693 $11,964,006 $8,750,786 $4,148,439 $2,596,891
Distributions from net
ordinary income** 71,645 -- 29,707 -- --
Distributions from net
long-term capital gains 1,603,834 727,172 444,780 292,832 250,126
==========================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
45
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets of each Fund as follows:
SELECT TAX-FREE 2 (NXQ)
SELECT TAX-FREE 3 (NXR)
CALIFORNIA SELECT TAX-FREE (NXC)
SELECT TAX-FREE (NXP) NEW YORK SELECT TAX-FREE (NXN)
AVERAGE DAILY NET ASSETS FUND-LEVEL FEE RATE FUND-LEVEL FEE RATE
---------------------------------------------------------------------------------------------
For the first $125 million .0500% .1000%
For the next $125 million .0375 .0875
For the next $250 million .0250 .0750
For the next $500 million .0125 .0625
=============================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of September 30, 2005, the complex-level fee rate was .1898%.
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion(2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds 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 Funds from the Adviser or its affiliates. The Board of Trustees
has adopted a deferred compensation plan for independent Trustees that enables
Trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised Funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised Funds.
46
6. ANNOUNCEMENT REGARDING PARENT COMPANY OF ADVISER
In early April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul
Travelers"), which owned 79% of Nuveen, (A) completed a public offering of a
substantial portion of its equity stake in Nuveen, (B) sold Nuveen $200 million
of its Nuveen shares, (C) entered into an agreement with Nuveen to sell an
additional $400 million of its Nuveen shares on a "forward" basis with payment
for and settlement of these shares delayed for several months, and (D) entered
into agreements with two unaffiliated investment banking firms to sell an amount
equal to most or all of its remaining Nuveen shares for current payment but for
future settlement. Transactions (C) and (D) above were settled in late July,
which effectively reduced St. Paul Travelers' controlling stake in Nuveen and
was deemed an "assignment" (as defined in the 1940 Act) of the investment
management agreements between the Funds and the Adviser, which resulted in the
automatic termination of each agreement under the 1940 Act. In anticipation of
such deemed assignment, the Board of Trustees had approved new ongoing
investment management agreements for each Fund and the submission of those
agreements for approval by each respective Fund's shareholders, which
shareholder approval was received prior to the settlement of transactions (C)
and (D). The new ongoing management agreements took effect upon such settlement.
7. SUBSEQUENT EVENT DISTRIBUTIONS TO SHAREHOLDERS
The Funds declared dividend distributions from their tax-exempt net investment
income which were paid on November 1, 2005, to shareholders of record on October
15, 2005, 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 $.0570 $.0550 $.0535 $.0550 $.0510
==========================================================================================================
47
Financial
HIGHLIGHTS (Unaudited)
Selected data for a share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
----------------------------------- ------------------------------
NET ENDING
BEGINNING NET REALIZED/ NET NET ENDING
NET ASSET INVESTMENT UNREALIZED INVESTMENT CAPITAL ASSET MARKET
VALUE INCOME GAIN (LOSS) TOTAL INCOME GAINS TOTAL VALUE VALUE
====================================================================================================================================
SELECT TAX-FREE
(NXP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2006(a) $14.62 $.35 $ .13 $ .48 $(.34) $ -- $(.34) $14.76 $14.55
2005 14.85 .70 (.12) .58 (.71) (.10) (.81) 14.62 13.50
2004 14.82 .73 .15 .88 (.76) (.09) (.85) 14.85 14.30
2003 14.67 .77 .37 1.14 (.82) (.17) (.99) 14.82 14.15
2002 15.05 .88 (.38) .50 (.86) (.02) (.88) 14.67 13.85
2001 14.89 .91 .15 1.06 (.90) -- (.90) 15.05 14.50
SELECT TAX-FREE 2
(NXQ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2006(a) 14.38 .33 .14 .47 (.33) -- (.33) 14.52 13.56
2005 14.56 .67 (.13) .54 (.68) (.04) (.72) 14.38 13.08
2004 14.45 .70 .19 .89 (.72) (.06) (.78) 14.56 13.80
2003 14.53 .76 .14 .90 (.80) (.18) (.98) 14.45 13.49
2002 14.89 .86 (.36) .50 (.84) (.02) (.86) 14.53 13.66
2001 14.75 .87 .14 1.01 (.87) -- (.87) 14.89 14.15
SELECT TAX-FREE 3
(NXR)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2006(a) 14.22 .32 .16 .48 (.32) -- (.32) 14.38 13.25
2005 14.37 .66 (.11) .55 (.67) (.03) (.70) 14.22 12.82
2004 14.28 .69 .16 .85 (.69) (.07) (.76) 14.37 13.56
2003 14.26 .73 .12 .85 (.76) (.07) (.83) 14.28 13.06
2002 14.53 .81 (.28) .53 (.80) -- (.80) 14.26 13.42
2001 14.32 .81 .21 1.02 (.81) -- (.81) 14.53 13.70
CALIFORNIA SELECT
TAX-FREE (NXC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2006(a) 14.54 .33 .20 .53 (.33) -- (.33) 14.74 14.23
2005 14.68 .66 (.09) .57 (.66) (.05) (.71) 14.54 13.40
2004 14.54 .68 .19 .87 (.68) (.05) (.73) 14.68 14.06
2003 14.44 .71 .26 .97 (.73) (.14) (.87) 14.54 13.59
2002 14.79 .78 (.34) .44 (.77) (.02) (.79) 14.44 14.25
2001 14.57 .79 .23 1.02 (.79) (.01) (.80) 14.79 13.94
NEW YORK SELECT
TAX-FREE (NXN)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2006(a) 14.28 .31 .12 .43 (.31) -- (.31) 14.40 13.55
2005 14.57 .64 (.21) .43 (.66) (.06) (.72) 14.28 13.65
2004 14.51 .68 .14 .82 (.68) (.08) (.76) 14.57 14.40
2003 14.17 .70 .43 1.13 (.70) (.09) (.79) 14.51 13.60
2002 14.51 .73 (.33) .40 (.74) -- (.74) 14.17 13.76
2001 14.31 .78 .20 .98 (.78) -- (.78) 14.51 14.05
====================================================================================================================================
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:
2006(a) 10.39% 3.30% $241,728 .32%* 4.68%* .31%* 4.69%* 0%
2005 .17 4.00 239,460 .33 4.76 .32 4.77 11
2004 7.34 6.13 243,165 .34 4.90 .33 4.91 16
2003 9.51 7.84 242,669 .37 5.20 .36 5.21 35
2002 1.54 3.41 240,275 .38 5.89 .37 5.89 26
2001 12.63 7.32 246,475 .35 6.06 .35 6.07 2
SELECT TAX-FREE 2
(NXQ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2006(a) 6.22 3.28 255,649 .36* 4.49* .35* 4.50* 1
2005 .11 3.82 253,158 .37 4.68 .36 4.69 13
2004 8.35 6.31 256,373 .39 4.86 .38 4.86 10
2003 6.01 6.33 254,355 .42 5.20 .41 5.21 46
2002 2.57 3.41 255,887 .43 5.79 .42 5.80 21
2001 12.46 7.04 262,144 .41 5.89 .40 5.90 2
SELECT TAX-FREE 3
(NXR)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2006(a) 5.89 3.40 186,477 .37* 4.46* .36* 4.48* 3
2005 (.17) 4.01 184,379 .38 4.66 .37 4.67 16
2004 9.96 6.13 186,358 .38 4.84 .38 4.85 6
2003 3.51 6.09 185,137 .42 5.09 .41 5.10 51
2002 3.84 3.70 184,837 .44 5.59 .42 5.60 9
2001 12.97 7.36 188,344 .47 5.66 .46 5.67 2
CALIFORNIA SELECT
TAX-FREE (NXC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2006(a) 8.73 3.65 92,219 .38* 4.45* .37* 4.46* 1
2005 .50 3.99 90,949 .39 4.55 .39 4.56 13
2004 9.14 6.16 91,864 .40 4.64 .39 4.65 30
2003 1.34 6.86 90,975 .43 4.84 .42 4.85 42
2002 7.95 3.03 90,346 .44 5.27 .43 5.28 12
2001 7.23 7.21 92,517 .43 5.38 .42 5.39 2
NEW YORK SELECT
TAX-FREE (NXN)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 3/31:
2006(a) 1.48 3.02 56,295 .41* 4.24* .40* 4.25* 6
2005 .05 3.10 55,817 .41 4.48 .41 4.48 13
2004 11.81 5.84 56,958 .43 4.65 .42 4.65 16
2003 4.73 8.17 56,683 .46 4.85 .45 4.86 35
2002 3.17 2.75 55,362 .49 5.04 .48 5.05 28
2001 17.36 7.02 56,679 .48 5.39 .47 5.40
====================================================================================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Net Asset Value is
the combination of changes in net asset value, reinvested dividend income
at net asset value and reinvested capital gains distributions at net asset
value, if any. Total returns are not annualized.
*** After custodian fee credit, where applicable.
(a) For the six months ended September 30, 2005.
See accompanying notes to financial statements.
48-49 spread
ANNUAL INVESTMENT
MANAGEMENT AGREEMENT
APPROVAL PROCESS
At a meeting held on May 10-12, 2005, the Board of Trustees of the Funds,
including the independent Trustees, unanimously approved the Investment
Management Agreement between each Fund and NAM.
THE APPROVAL PROCESS
To assist the Board in its evaluation of an advisory contract with NAM, the
independent Trustees received a report in adequate time in advance of their
meeting which outlined, among other things, the services provided by NAM; the
organization of NAM, including the responsibilities of various departments and
key personnel; the Fund's past performance as well as the Fund's performance
compared to funds of similar investment objectives compiled by an independent
third party (a "Peer Group"); the profitability of NAM and certain industry
profitability analyses for advisers to unaffiliated investment companies; the
expenses of NAM in providing the various services; the management fees of NAM,
including comparisons of such fees with the management fees of comparable funds
in its Peer Group as well as comparisons of NAM's management fees with the fees
NAM assesses to other types of investment products or accounts, if any; the soft
dollar practices of NAM; and the expenses of each Fund, including comparisons of
the Fund's expense ratios (after any fee waivers) with the expense ratios of its
Peer Group. This information supplements that received by the Board throughout
the year regarding Fund performance, expense ratios, portfolio composition,
trade execution and sales activity.
In addition to the foregoing materials, independent legal counsel to the
independent Trustees provided, in advance of the meeting, a legal memorandum
outlining, among other things, the duties of the Trustees under the 1940 Act as
well as the general principles of relevant state law in reviewing and approving
advisory contracts; the requirements of the 1940 Act in such matters; an
adviser's fiduciary duty with respect to advisory agreements and compensation;
the standards used by courts in determining whether investment company boards of
directors have fulfilled their duties and factors to be considered by the board
in voting on advisory agreements.
At the Board meeting, NAM made a presentation to and responded to questions from
the Board. After the presentations and after reviewing the written materials,
the independent Trustees met privately with their legal counsel to review the
Board's duties in reviewing advisory contracts and consider the renewal of the
advisory contracts. It is with this background that the Trustees considered each
Investment Management Agreement with NAM. The independent Trustees, in
consultation with independent counsel, reviewed the factors set out in judicial
decisions and SEC directives relating to the renewal of advisory contracts. As
outlined in more detail below, the Trustees considered all factors they believed
relevant with respect to each Fund, including the following: (a) the nature,
extent and quality of the services to be provided by NAM; (b) the investment
performance of the Fund and NAM; (c) the costs of the services to be provided
and profits to be realized by NAM and its affiliates from the relationship with
the Fund; (d) the extent to which economies of scale would be realized as the
Fund grows; and (e) whether fee levels reflect these economies of scale for the
benefit of Fund investors.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In evaluating the nature, extent and quality of NAM's services, the Trustees
reviewed information concerning the types of services that NAM or its affiliates
provide and are expected to provide to the Nuveen Funds; narrative and
statistical information concerning the Fund's performance record and how such
performance compares to the Fund's Peer Group; information describing NAM's
organization and its various departments, the experience and responsibilities of
key personnel, and available resources. In the discussion of key personnel, the
Trustees received materials regarding the changes or additions in personnel of
NAM. The Trustees further noted the willingness of the personnel of NAM to
engage in open, candid discussions with the Board. The Trustees further
considered the quality of NAM's investment process in making portfolio
management decisions, including any refinements or improvements to the portfolio
management processes, enhancements to technology and systems that are available
to portfolio managers, and any additions of new personnel which may strengthen
or expand the research and investment capabilities of NAM. In their review of
the advisory contracts for the fixed income funds, such as the Funds, the
Trustees also noted that Nuveen won the Lipper Award for Best Fund Family: Fixed
Income-Large Asset Class, for 2004. Given the Trustees' experience with the
Funds, other Nuveen funds and NAM, the Trustees noted that they were familiar
with and continue to have a good understanding of the organization, operations
and personnel of NAM.
In addition to advisory services, the independent Trustees considered the
quality of the administrative or non-advisory services provided. In this regard,
NAM provides the Funds with such administrative and other services (exclusive
of, and in addition to, any such services provided by others for the Funds) and
officers and other personnel as are necessary for the operations of the
respective Fund. In addition to investment management services, NAM and its
affiliates provide each Fund with a wide range of services, including: preparing
shareholder reports; providing daily accounting; providing quarterly financial
statements; overseeing and coordinating the activities of other service
providers; administering and organizing Board meetings and preparing the Board
materials
50
for such meetings; providing legal support (such as helping to prepare
registration statements, amendments thereto and proxy statements and responding
to regulatory inquiries); and performing other Fund administrative tasks
necessary for the operation of the respective Fund (such as tax reporting and
fulfilling regulatory filing requirements). In addition, in evaluating the
administrative services, the Trustees considered, in particular, NAM's policies
and procedures for assuring compliance with applicable laws and regulations in
light of the new SEC regulations governing compliance. The Trustees noted NAM's
focus on compliance and its compliance systems. In their review, the Trustees
considered, among other things, the additions of experienced personnel to NAM's
compliance group and modifications and other enhancements to NAM's computer
systems. In addition to the foregoing, the Trustees also noted that NAM
outsources certain services that cannot be replicated without significant costs
or at the same level of expertise. Such outsourcing has been a beneficial and
efficient use of resources by keeping expenses low while obtaining quality
services.
In addition to the above, in reviewing the variety of additional services that
NAM or its affiliates must provide to closed-end funds, such as the Funds, the
independent Trustees determined that Nuveen's commitment to supporting the
secondary market for the common shares of its closed-end funds is particularly
noteworthy. In this regard, the Trustees noted Nuveen's efforts to sponsor
numerous forums for analysts and specialists regarding the various Nuveen
closed-end funds, its creation of a new senior position dedicated to providing
secondary market support services and enhancing communications with investors
and analysts, and its advertising and media relations efforts designed to raise
investor and analyst awareness of the closed-end funds.
With respect to services provided to municipal funds, including the Funds, the
Trustees also noted, among other things, the enhancements NAM implemented to its
municipal portfolio management processes (e.g., the increased use of benchmarks
to guide and assess the performance of its portfolio managers); the
implementation of a risk management program; and the various initiatives being
undertaken to enhance or modify NAM's computer systems as necessary to support
the innovations of the municipal investment team (such as, the ability to assess
certain historical data in order to create customized benchmarks, perform
attribution analysis and facilitate the use of derivatives as hedging
instruments). With respect to certain of the Nuveen funds with a less seasoned
portfolio, the Trustees also noted the hedging program implemented for such
funds and the team responsible for developing, implementing and monitoring the
hedging procedures. The hedging program was designed to help maintain the
applicable fund's duration with certain benchmarks.
Based on their review, the Trustees concluded that, overall, they were satisfied
with the nature, extent and quality of services provided (and expected to be
provided) to the Funds under the Investment Management Agreements.
B. THE INVESTMENT PERFORMANCE OF THE FUND AND ADVISER
As previously noted, the Board received a myriad of performance information
regarding each Fund and its Peer Group. Among other things, the Board received
materials reflecting a Fund's historic performance and the Fund's performance
compared to its Peer Group. In evaluating the performance information, in
certain limited instances, the Trustees noted that the closest Peer Group for a
Fund still would not adequately reflect such Fund's investment objectives and
strategies, thereby limiting the usefulness of the comparisons of such Fund's
performance with that of the Peer Group.
As noted above, the performance data included, among other things, the Fund's
performance relative to its peers. More specifically, a Fund's one-, three- and
five-year total returns (as applicable) for the periods ending December 31, 2004
were evaluated relative to the unaffiliated funds in its respective Peer Group
(including the returns of individual peers as well as the Peer Group average) as
well as additional performance information with respect to all funds in the Peer
Group. Based on their review, the Trustees determined that the respective Fund's
absolute and relative investment performance over time had been satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
In evaluating the management fees and expenses that a Fund is expected to
bear, the Trustees considered the Fund's current management fee structure and
the Fund's expected expense ratios in absolute terms as well as compared with
the fees and expense ratios of the unaffiliated funds in its Peer Group. The
Trustees reviewed the financial information of NAM, including its respective
revenues, expenses and profitability. In reviewing fees, the Trustees, among
other things, reviewed comparisons of the Fund's gross management fees (fees
after fund-level and complex-wide level breakpoints but before reimbursement
and fee waivers), net management fees (after breakpoints and reimbursements
and fee waivers) and total expense ratios (before and after waivers) with
those of the unaffiliated funds in the Peer Group and peer averages. In this
regard, the Trustees noted that the relative ranking of the Nuveen funds on
fees and expenses was aided by the significant level of fee reductions
provided by the fund-level and complex-wide breakpoint schedules, and the fee
waivers and reimbursements provided by Nuveen for certain funds launched
since 1999. The complex-wide breakpoint schedule was instituted in 2004 and
is described in further detail below in Section D entitled "Economies of
Scale and Whether Fee Levels Reflect these Economies of Scale." In their
review of the fee and expense information provided, including, in particular,
the expense ratios of the unaffiliated funds in its respective Peer Group,
the Trustees determined that each Fund's net total expense ratio was within
an acceptable range compared to such peers.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Trustees further compared the fees of NAM to the fees NAM assessed for
other types of clients investing in municipal funds (such as municipal
managed accounts). With respect to such separately managed accounts, the
advisory fees for such accounts are generally lower than those charged to the
comparable Funds. The Trustees noted, however, the additional services that
are provided and the costs incurred by Nuveen in managing and operating
registered investment companies, such as the Funds, compared to individually
managed separate accounts. For instance, as described above, NAM and its
affiliates provide numerous services to the Funds including, but not limited
to, preparing shareholder reports; providing daily accounting; preparing
quarterly
51
ANNUAL INVESTMENT MANAGEMENT
AGREEMENT APPROVAL PROCESS (continued)
financial statements; overseeing and coordinating the activities of other
service providers; administering and organizing Board meetings and preparing
the Board materials for such meetings; providing legal support; and
administering all other aspects of the Fund's operations. Further, the
Trustees noted the increased compliance requirements for funds in light of
new SEC regulations and other legislation. These services are generally not
required to the same extent, if at all, for separate accounts. In addition to
the differences in services, the Trustees also considered, among other
things, the differences in product distribution, investment policies,
investor profiles and account sizes. Accordingly, the Trustees believe that
the nature and number of services provided to operate a Fund merit the higher
fees than those to separate managed accounts.
3. PROFITABILITY OF NAM
In conjunction with its review of fees, the Trustees also considered NAM's
profitability. The Trustees reviewed NAM's revenues, expenses and
profitability margins (on both a pre-tax and after-tax basis). In reviewing
profitability, the Trustees recognized that one of the most difficult issues
in determining profitability is establishing a method of allocating expenses.
Accordingly, the Trustees reviewed NAM's assumptions and methodology of
allocating expenses. In this regard, the methods of allocation used appeared
reasonable but the Board noted the inherent limitations in allocating costs
among various advisory products. The Trustees also recognized that individual
fund or product line profitability of other advisers is generally not
publicly available. Further, profitability may be affected by numerous
factors including the types of funds managed, expense allocations, business
mix, etc. and therefore comparability of profitability is somewhat limited.
Nevertheless, to the extent available, the Trustees considered NAM's profit
margin compared to the profitability of various publicly-traded investment
management companies and/or investment management companies that publicly
disclose some or all of their financial results compiled by three independent
third-party service providers. The Trustees also reviewed the revenues,
expenses and profit margins of various unaffiliated advisory firms with
similar amounts of assets under management for the last year prepared by NAM.
Based on their review, the Trustees were satisfied that NAM's level of
profitability from its relationship with each Fund was reasonable in light of
the services provided.
In evaluating the reasonableness of the compensation, the Trustees also
considered any other revenues paid to NAM as well as any indirect benefits
(such as soft dollar arrangements, if any) NAM and its affiliates are
expected to receive that are directly attributable to their management of the
Funds, if any. See Section E below for additional information. Based on their
review of the overall fee arrangements of the applicable Fund, the Trustees
determined that the advisory fees and expenses of the respective Fund were
reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
In reviewing the compensation, the Trustees have long understood the benefits of
economies of scale as the assets of a fund grow and have sought to ensure that
shareholders share in these benefits. One method for shareholders to share in
economies of scale is to include breakpoints in the advisory fee schedules that
reduce fees as fund assets grow. Accordingly, the Trustees received and reviewed
the schedules of advisory fees for each Fund, including fund-level breakpoints
thereto. In addition, after lengthy negotiations with management, the Board in
May, 2004 approved a complex-wide fee arrangement pursuant to which fees of the
funds in the Nuveen complex, including the Funds, are reduced as the assets in
the fund complex reach certain levels. The complex-wide fee arrangement was
introduced on August 1, 2004 and the Trustees reviewed data regarding the
reductions of fees for the Funds for the period of August 1, 2004 to December
31, 2004. In evaluating the complex-wide fee arrangement, the Trustees
considered, among other things, the historic and expected fee savings to
shareholders as assets grow, the amount of fee reductions at various asset
levels, and that the arrangement would extend to all funds in the Nuveen
complex. The Trustees also considered the impact, if any, the complex-wide fee
arrangement may have on the level of services provided. Based on their review,
the Trustees concluded that the breakpoint schedule and complex-wide fee
arrangement currently were acceptable and desirable in providing benefits from
economies of scale to shareholders.
E. INDIRECT BENEFITS
In evaluating fees, the Trustees also considered any indirect benefits or
profits NAM or its affiliates may receive as a result of its relationship with
each Fund. In this regard, the Trustees considered any benefits from soft dollar
arrangements. The Trustees noted that although NAM manages a large amount of
assets, it has very little, if any, brokerage to allocate. This is due to the
fact that NAM typically manages the portfolios of the municipal funds in the
Nuveen complex and municipal bonds generally trade on a principal basis.
Accordingly, NAM does not currently have any soft dollar arrangements and does
not pay excess brokerage commissions (or spreads on principal transactions) in
order to receive research services. In addition to soft dollar arrangements, the
Trustees also considered any other revenues, if any, received by NAM or its
affiliates. In this regard, the Trustees considered revenues received by
52
Nuveen for serving as agent for broker-dealers at its preferred trading desk and
for acting as co-manager in the initial public offering of new closed-end
exchange-traded funds.
F. OTHER CONSIDERATIONS
Nuveen, until recently, was a majority-owned subsidiary of St. Paul Travelers
Companies, Inc. ("St. Paul"). As noted, St. Paul earlier this year announced its
intention to divest its equity stake in Nuveen. Nuveen is the parent of NAM.
Pursuant to a series of transactions, St. Paul had begun to reduce its interest
in Nuveen which will ultimately result in a change of control of Nuveen and
therefore NAM. As mandated by the 1940 Act, such a change in control would
result in an assignment of the Investment Management Agreement with NAM and the
automatic termination of such agreement. Accordingly, the Board also considered
the approval of a New Investment Management Agreement with each Fund in light
of, and which would take effect upon, the anticipated change of control. More
specifically, the Board considered for each Fund a New Investment Management
Agreement on substantially identical terms to the existing Investment Management
Agreement, to take effect after the change of control has occurred and the
contract has been approved by Fund shareholders. In its review, the Board
considered whether the various transactions necessary to divest St. Paul's
interest will have an impact on the various factors they considered in approving
NAM, such as the scope and quality of services to be provided following the
change of control. In reviewing the St. Paul transactions, the Board considered,
among other things, the impact, if any, on the operations and organizational
structure of NAM; the possible benefits and costs of the transactions to the
respective Fund; the potential implications of any arrangements used by Nuveen
to finance certain of the transactions; the ability of NAM to perform its duties
after the transactions; whether a fee structure or expense ratio would change;
any changes to the current practices of the Fund; any changes to the terms of
the advisory agreement; and any anticipated changes to the operations of NAM.
Based on its review, the Board determined that St. Paul's divestiture would not
affect the nature and quality of services provided by NAM, the terms of the
Investment Management Agreement, including the fees thereunder, and would not
materially affect the organization or operations of NAM. Accordingly, the Board
determined that their analysis of the various factors regarding their approval
of NAM would continue to apply after the change of control.
G. APPROVAL
The Trustees did not identify any single factor discussed previously as
all-important or controlling. The Trustees, including a majority of independent
Trustees, concluded that the terms of the Investment Management Agreements were
fair and reasonable, that NAM's fees are reasonable in light of the services
provided to each Fund, that the renewal of the NAM Investment Management
Agreements should be approved and that the new, post-change of control NAM
Investment Management Agreements be approved and recommended to shareholders.
53
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN EXCHANGE-TRADED CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Closed-End Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
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
the 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.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
54
Other Useful
INFORMATION
In April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul Travelers")
sold the majority of its controlling equity interest in Nuveen Investments, Inc.
("Nuveen") to the general public. Nuveen is the parent of Nuveen Asset
Management ("NAM"), which is each Fund's investment manager. This sale was
deemed to be an "assignment" of the investment management agreement between each
Fund and NAM and, if applicable, of the sub-advisory agreement between NAM and
the Fund's sub-adviser. As required by law, the shareholders of each Fund were
asked to approve a new investment management agreement and, if applicable, a new
subadvisory agreement that reflected this change in ownership. The shareholders
of each Fund voted this approval at a Shareholders' Meeting on July 26, 2005.
There were no changes to the investment objectives or management of any Fund as
a result of these actions.
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2005, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
Fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
MODIFIED DURATION: Duration is a measure of the expected period over which a
bond's principal and interest will be paid and consequently is a measure of the
sensitivity of a bond's or bond Fund's value to changes when market interest
rates change. Generally, the longer a bond's or Fund's duration, the more the
price of the bond or Fund will change as interest rates change.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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 period covered by this report. Any future repurchases
will be reported to shareholders in the next annual or semiannual report.
55
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing more than $125 billion in assets, Nuveen Investments offers access to a
number of different asset classes and investing solutions through a variety of
products. Nuveen Investments markets its capabilities under four distinct
brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; and
Symphony, a leading institutional manager of market-neutral alternative
investment portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
o Fund details
Learn more o Daily financial news
about Nuveen Funds at o Investor education
WWW.NUVEEN.COM/ETF o Interactive planning tools
Logo: NUVEEN Investments
ESA-B-0905D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable at this time.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen California Select Tax-Free Income Portfolio
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: December 8, 2005
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: December 8, 2005
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: December 8, 2005
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.